Banco de Credito e Inversiones · BCS:BCI
Banco de Credito e Inversiones — Q4 2023 Earnings Presentation
26 slides from Banco de Credito e Inversiones's earnings presentation, February 2024
Slide 1: Corporate Presentation 4Q 2023
Corporate Presentation 4Q 2023 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl Febrero 2024
Slide 2: Bci at a glance
Bci at a glance
Slide 3: Leading financial institution in Chile by Assets and Loans
Leading financial institution in Chile by Assets and Loans Profitable and financially sound Diversified business model Bci/Subsidiary Diversification as of December 2023 • Largest bank in Chile (total loans) US$90.41bn US$57.17bn • 3rd Largest Florida-based bank (+1.6% YoY) (+6.7% YoY) Total assets
Slide 4: Chilean financial system
Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Banking system capitalization ratio (Basel III) Chilean banking regulation – upgrading to Basel III Total loans in the banking system (US$bn) 2 March 2023: CMF reports on rating of systemically important banks
Slide 6: Bci Consolidated
Bci Consolidated
Slide 7: A successful strategy supported by its strong corporate governance
A successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Private pension Board of Directors is composed by experts in various fields, academics, economists, funds bankers and individuals connected with th
Slide 8: ~4 million customers already have a free MACH account
~4 million customers already have a free MACH account and +50% of monthly active users are heavy users ~4 million Registered clients ~400k Checking Account opting for a free account +570k clients have already paid with P2M in 2023 ~1 million active clients making value transactions 49k clients have
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark In US$mm, as of December 2023 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 14.7% 17.4% 14.9% 16.2% 13.7% 9.8% 13.3% 15.2% 19.1% 15.7% 15.0% 12.0% 9.5% 13.5% Commercial Consumer Mortgage Deposits1 Net income
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) CAGR CAGR Source: Financial Market Commission (CMF). Note: Figures are converted to US$ using an FX of USD/CLP of 877.12 (January 2nd 2024); Include Corp
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Local loans market share (%) 2 Return on average Equity (ROAE) 1 as of December 2023 Chile 25.10% 19.95% 13.13% 11.95% 12.34% 10.10% +88 bps of market share Return on average assets (ROAA)1 as of December 2023 2.26% 1.10% 0.87% 0.91% 0.86% 0.73% Source: CMF as of
Slide 12: …with diversified and funding cost
…with diversified and funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type 1 Long term funding composed primarily of UF local bonds in the Chilean market, complemented by other international issuances, through our EMTN program in US dollars, Euros, Swiss Francs
Slide 13: Risk Evolution
Risk Evolution Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. We have a stock of over US$ 480 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sectors, and custome
Slide 14: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services Note: Includes Bci subsidiary in USA (CNB) and Bci Peru. *Does not include Interbank loans
Slide 15: Financial Services: NPL's
Financial Services: NPL's Figures are converted to US$ using an FX of 877.12 (January 2nd 2024)
Slide 16: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of December 2023 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Note: Figures are converted to USD using an FX of 877.12 (January
Slide 17: Balance sheet
Balance sheet CAGR US$ million (*) 2019 2020 2021* 2022* 2023* 2019-2023 Cash 3,596 5,242 4,628 4,853 4,127 3.51% Securities 7,104 10,450 21,580 22,741 20,612 30.52% Loans 38,387 39,989 49,073 53,603 57,172 10.47% Other Financial Instruments 134 74 158 358 368 28.76% Intangible Assets 285 286 515 46
Slide 18: Financial results
Financial results CAGR US$ million (*) 2019 2020 2021* 2022* 2023* 2018-2023 Net Interest Income 1,507 1,663 1,821 2,633 2,304 11.21% Net Service Fee Income 401 383 395 418 389 -0.79% Other Operating Income 249 272 248 26 180 -7.76% Operating Income 1,908 2,045 2,216 3,077 2,873 10.78% Provision for
Slide 19: City National Bank of Florida
City National Bank of Florida.
Slide 20: We strengthened our liquidity position in 2023, improved our capital ratios
We strengthened our liquidity position in 2023, improved our capital ratios and our CRE portfolio is well managed Insured Client Deposits Liquidity Capital Investments CRE Deposits Client deposits We maintained We reduced our Our CET 1 ratio 99% of our Our commercial remained stable ~$11B of uninsur
Slide 21: Despite turmoil, our client deposits remained stable in 2023
Despite turmoil and deposits outflows in the banking system, our client deposits remained stable in 2023 Total Deposits ($MM) Banking Industry - Total Deposits ($B) Client Deposits QoQ change: +92MM +0.5% QoQ change: +$46B +0.3% +$788 (+4%) ($304) $21,482 (-2%) $20,253 $21,041 $3,918 $17,725 $17,375
Slide 22: Our core loans grew $952MM in 2023 while maintaining strong asset quality
Our core loans grew $952MM in 2023 while maintaining strong asset quality (low NPLs and past dues) Total Assets ($MM) Total Loans & Leases ($MM) QoQ change: +$88MM, +0.3% Core loans QoQ change: -$48MM, -0.3% Non-owner occupied CRE +$910 represents (3%) 48% of total $17,476 $17,423 portfolio $25,218
Slide 23: Operating income in 2023 was 18% lower than 2022
Operating income in 2023 was 18% lower than 2022 Q4 Q3 Q4 $ Var % Var $ Var % Var INCOMESTATEMENT($ millions) 2022 2023 2023 QoQ QoQ 2022 2023 YoY YoY (+) Net Interest Income $158.6 $114.7 $113.5 -$1.2 -1.0% $626.8 $500.6 -$126.1 -20.1% (+) Non-Interest Income $25.1 $23.9 $22.7 -$1.2 -5.0% $96.3 $91
Slide 24: Net income in Q4 included several special items
Net income in Q4 included several special items. Normalizing for those, net income remained in line with prior quarter Net income after taxes ($MM) ($2) (-4%) $5 ($10) $43 $41 $15 $20 $12 Q3-2023 Q4-2023 FDIC one-time fee Additional loan Loss on sale of Tax impact Q4-2023 loss provisions corp. bonds
Slide 25: NIM stabilized in Q4 2023 after compressing in previous quarters
NIM stabilized in Q4 2023 after compressing in previous quarters due to DDA migration to IB deposits and deposit repricing given the historic increase in short-term rates Quarterly average NIM (overall and core) (%) Quarterly average cost of funds versus effective fed funds and quarterly change in D
Slide 26: Forward-looking statements
This presentation contains forward-looking statements in various places throughout therein, related to, without limitation, our future business development. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend
Banco de Crédito e Inversiones (Bci) — Q4 2023 Earnings Presentation on 6ix