Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q2 2018 Earnings Presentation
32 slides from Banco De Credito E Inversiones's earnings presentation, August 2018
Slide 1: Corporate Presentation Second Quarter 2018
Corporate Presentation Second Quarter 2018 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl August 2018
Slide 2: Contents
Contents. Main macroeconomic indicators Chilean financial system Banco de Crédito e Inversiones City National Bank of Florida Bci Investor Relations August 2018
Slide 3: Main macroeconomic indicators
Bci Investor Relations Main macroeconomic indicators
Slide 4: GDP Growth Projections (2018-2019)
GDP Growth Projections (2018-2019) 4.5 4.0 3.5 3.0 2.5 2.0 GDP PIB 2019 year 2019 GDP 20182018 PIB year Source: Chilean Central Bank, BCI Research. 4
Slide 5: Macroeconomic Indicators
Macroeconomic Indicators Monthly Economic Growth (% yoy) 6 5 4 3 2 1 0 -1 -2 -3 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Mining Non Mining Imacec Economic Sentiment Index 70 (pts) 60 50 40 30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Economic Expectations, Next 12M Economic Confidence Sou
Slide 6: Chilean financial system
Bci Investor Relations Chilean financial system
Slide 7: Financial System
Financial System Strong growth over the years (US$ Million) Total Loans (*) Commercial & Interbank Loans (*) 2.6% 4.9% 148,641 138,458 140,435 136,925 258,216 133,483 242,501 237,910 232,531 220,324 8.5% 8.6% 2015 2016 2017 2Q2017 2Q2018 2015 2016 2017 2Q2017 2Q2018 Consumer Loans (*) Mortgage Loans
Slide 8: Banco de Crédito e Inversiones
Bci Investor Relations Banco de Crédito e Inversiones
Slide 9: Shareholders and corporate governance
Shareholders and corporate governance Shareholder structure as of Jun 2018 Since Luis Enrique Yarur Rey (President) 1991 Shareholder José Pablo Arellano Marín 2011 Float Mario Gómez Dubravcic 2011 Agreement 27.26% Board of 63.28% Juan Ignacio Lagos Contardo 2013 Directors Lionel Olavarría Leyton (Vi
Slide 10: Bci Highlights - Profitable and financially sound
Bci Highlights - Profitable and financially sound Jun’18 in US$ Million (*) Market Share Total Assets $ 60,465 Total Loans $ 44,291 17.15% Net Income $ 319 16.01% Market Capitalization $ 8,341 Tier I BIS ratio Capital Ratios 8.98% 11.78% Moody's S&P Fitch International Credit Ranking A1 A A ROAE** 1
Slide 11: Corporate Strategy
Corporate Strategy Strategic Priorities 11 22 3 3 Leverage digital customer Drive sustainable growth, Enhance leadership and experience to achieve while maintaining prudent collaboration throughout the competitive advantage risk organization 11
Slide 12: Strategy Execution
Strategy Execution Best-in-Class Customer ▪ Leverage digital customer experience and superior analytics to achieve deeper relationships and higher revenues per client, with focus on Retail and SMEs Experience through Digital Transformation ▪ Strategy-driven IT transformation to reduce cost-to serve,
Slide 13: Market shares
Market shares 3rd largest privately owned bank in Chile Total Assets Total Loans 16.82% 17.15% Bci Bci 14.68% Bank 1 Others 16.01% Bank 1 Others 64.62% 63.67% 35.38% 36.33% Bank 2 Bank 2 16.06% 17.39% Bank 3 Bank 3 16.12% 14.07% Non Interest Bearing Deposits (NIBD) Net Income 16.01% 23.55% Bci Bci O
Slide 14: Loan portfolio
Loan portfolio Bci has outperformed the financial system during 2015-2018 (US$ Million) CNB BCI Total Loans Commercial & Interbank Loans 4.9% 2.6% 23.2% 44,291 25.1% 29,099 10.3% 9.1% 37,946 24,513 35,938 10,207 23,262 34,624 22,886 7,923 31,180 6,809 6,315 20,587 5,546 4,450 5,718 5,107 4,435 8.5%
Slide 15: Loan portfolio: diversified and balanced
Loan portfolio Bci Well diversified and balanced loan portfolio Retail CIB Finance SMEs Wholesale Banking Division Individuals Revenues < UF 80,000 Revenues > UF 80,000 (up to US$3.1 M*) (up to US$ 58.6 million*) 47.21% 51.05% 41.53% 28.74% 14.78% 9.37% 5.44% 1.88% Loans by Segment Operating Income
Slide 16: Risk indicators
Risk indicators Conservative risk management policies Risk Index Total Loans Risk Index Commercial Loans Allowances/ Total Loans (Bci) Commercial Allowances/ Commercial Loans (Bci) Allowances/ Total Loans (Financial System) Commercial Allowances/ Commercial Loans (Financial System) 3.01% 2.98% 3.00%
Slide 17: Conservative risk management policies
Conservative risk management policies NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial Loans) Bci Financial System Bci Financial System 1.86% 1.93% 1.86% 1.93% 1.85% 1.70% 1.70% 1.47% 1.46% 1.50% 1.49% 1.58% 1.49% 1.47% 1.42% 1.48% 1.42% 1.40% 1.46% 1.40% 2015 2016 2017 2Q 2017 2Q 2018 2015 2016 2
Slide 18: Strong time deposit growth with retail customer base
Strong time deposit growth with retail customer base Non interest bearing deposits & time deposits (US$ million) 8.8% 7.2% 8.8% 17,109 14,641 12,583 13,659 12,357 Non Interest Bearing Deposits 7.2% 19,677 14,284 15,291 16,419 15,330 Time Deposits 2015 2016 2017 2Q 2017 2Q 2018 Breakdown by type Fund
Slide 19: Profitability
Profitability NIM (*) (Net Interest Margin/ Average Interest Earning Assets) 4.00% 3.61% 3.62% 3.54% 3.71% 3.93% 3.59% 3.36% 3.48% 3.31% 2015 2016 2017 2Q 2017 2Q 2018 Bci Banking Sector Efficiency ratio (**) Fee income ratio (Net Fees/ Net Fees + Net Interest Margin) 23.08% 24. 00% 22.64% 22.33% 50
Slide 20: Profitability
Profitability Sustained and profitable growth Net Income and Market Share (US$ Million) 5.96% 570 18.6% 600 508 522 16.0% 20.00% 500 17.3% 15.00% Net Income 400 16.6% 15.0% 300 Market 10.00%Share YTD 8.8% 151 200 139 100 5.00% 0 .00% 2015 2016 2017 2Q 2017 2Q 2018 ROAA (*) ROAE (*) 1.32% 1.33% 17.5%
Slide 21: Capitalization
Capitalization Bci capitalization well above regulatory requirements 13.41% 13.20% 13.57% 11.98% 11.78% Regulatory Capital / Consolidated Risk weighted assets Basic Capital / Total Assets 7.55% 7.55% 7.76% Required by Sbif (8%) 6.32% 6.77% Required by Sbif (3%) 2015 2016 2017 2Q 2017 2Q 2018 Bis Rat
Slide 22: City National Bank of Florida
Bci Investor Relations City National Bank of Florida
Slide 23: Financial Highlights Balance Sheet 2018
Financial Highlights • Total Assets increased by $3.3 BN in the quarter & $5.2 BN YoY to $14.1 BN, $2.6 BN of which due to the TotalBank transaction • Total Net Loans & Leases increased by $2.6 BN in the quarter & $3.9 BN YoY to $10.0 Balance BN, $2.1 BN of which due to the TotalBank transaction She
Slide 24: Financial Highlights: Sustained and Stable Growth
Financial Highlights: Sustained and Stable Growth Net Loans (US$BN) as of June 30, 2018 Deposits (US$BN) as of June 30, 2018 TotalBan TotalBank k ($2.0) ($2.1) ‘15-’17 ‘15-’17 CAGR: CAGR: 32% 32% Tier 1 Capital (US$MM) as of June 30, 2018 *Net Income (US$MM) as of June 30, 2018 2017 - $38 MM Tax Ref
Slide 25: TotalBank Transaction: Closed & Integrated
TotalBank Transaction: Closed & Integrated • The TotalBank acquisition was closed on June 15th Transaction • TotalBank loan & deposit activity has been business-as-usual Closed pre & post close • Balance sheet optimization plan is being executed • TotalBank’s systems were successfully integrated int
Slide 26: TotalBank Transaction: Closed & Integrated
TotalBank Transaction: Closed & Integrated Intangible assets increased by $202MM following the TotalBank acquistion TotalBank investment portfolio substantially sold and unwound upon acquisition as part of balance sheet optimization plan $570MM capital contribution from Bci immediately preceded tran
Slide 27: Key Metrics
Key Metrics In US$mm 2013 2014 2015 2016 2017 Q2 2018 Net Loans & Leases 2,750 3,311 4,041 5,324 7,062 9,975 Total Assets 4,822 5,353 6,478 8,252 10,170 14,100 Deposits 3,680 4,159 4,483 5,580 7,822 10,912 DDA (non interest) 1,600 1,831 1,942 2,103 2,515 3,401 Tangible Equity 695 761 845 922 982 1,3
Slide 28: Thank you
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
Slide 29: Balance sheet
Balance sheet CAGR US$ million (*) 2015 2016 2017 2Q 2017 2Q 2018 %D 2015-2017 Cash 1,954 2,423 2,297 8.41% 1,891 3,621 91.45% Securities 5,692 5,825 7,264 12.97% 6,320 7,365 16.54% Loans 30,620 34,056 37,330 10.41% 35,329 43,605 23.42% Other Financial Instruments 405 468 341 -8.22% 450 121 -73.10%
Slide 30: Balance sheet
Balance sheet CAGR CLP$ million (*) 2015 2016 2017 2Q 2017 2Q 2018 %D 2015-2017 Cash 1,272,552 1,577,565 1,495,732 8.41% 1,231,654 2,357,958 91.45% Securities 3,706,721 3,793,351 4,730,198 12.97% 4,115,429 4,796,095 16.54% Loans 19,939,945 22,177,574 24,309,484 10.41% 23,006,730 28,395,738 23.42% Ot
Slide 31: Financial results
Financial results CAGR US$ million (*) 2015 2016 2017 2Q 2017 2Q 2018 %D 2015-2017 Net Interest Income 1,229 1,390 1,436 10.33% 374 414 10.90% Net Service Fee Income 360 417 413 12.53% 101 108 6.53% Operating Income 1,589 1,807 1,848 10.81% 475 522 9.97% Other Operating Income 210 167 272 11.62% 51
Slide 32: Financial results
Financial results CAGR CLP$ million (*) 2015 2016 2017 2Q 2017 2Q 2018 %D 2015-2017 Net Interest Income 800,505 905,053 934,828 10.33% 243,254 269,763 10.90% Net Service Fee Income 234,270 271,629 268,706 12.53% 65,780 70,076 6.53% Operating Income 1,034,775 1,176,682 1,203,534 10.81% 309,034 339,83
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