Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q1 2020 Earnings Presentation
29 slides from Banco De Credito E Inversiones's earnings presentation, May 2020
Slide 1: Bci Investor Relations Presentation May 2020
Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl May 2020
Slide 2: Chilean financial system
Bci Investor Relations Chilean financial system
Slide 3: …with a robust financial system…
1 …with a robust financial system… CHILE. Evolution of GDP growth projections Total loans in the banking system1 (US$bn) NPL 2. 10% 2.07% 241.3 2. 05% 230.6 209.6 2.03% 2. 00% 177.7 185.3 168.4 1. 95% 1.93% 1. 90% 1.90% 1. 85% 1.86% 1.85% 1. 80% 1. 75% 1. 70% 2015 2016 2017 2018 2019 Mar-20 Source:
Slide 4: Bci at a glance
Bci Investor Relations Bci at a glance
Slide 5: Leading financial institution in Chile in Loans…
Leading financial institution in Chile in Loans… Profitable and financially sound Diversified business model as of March 2020 Largest bank in Chile (total loans) US$67.5 bn US$43.7 bn 3rd Largest Florida-based bank (+37.7% YoY) (+20.7% YoY) Total assets Total loans CNB : 24% Assets US$111.5 mm Bci M
Slide 6: …with a successful strategy supported by its strong corporate governance
…with a successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Private Board of Directors is composed by experts in various pension fields, academics, economists, bankers and individuals funds connected w
Slide 7: …Balance sheet
…Balance sheet US$ million (*) 2016 2017 2018 2019 CAGR Mar 2019 Mar 2020 %D 2016-2019 Cash 1,852 1,755 2,416 3,701 25.97% 1,893 3,622 91.36% Securities 4,452 5,552 6,186 7,313 17.99% 6,256 8,868 41.76% Loans 26,029 28,531 35,065 39,518 14.93% 35,508 42,833 20.63% Other Financial Instruments 357 261
Slide 8: …Financial results
…Financial results CAGR US$ million (*) 2016 2017 2018 2019 Mar 2019 Mar 2020 %D 2016-2019 Net Interest Income 1,062 1,097 1,268 1,551 13.45% 367 413 12.50% Net Service Fee Income 319 315 359 413 9.00% 96 107 11.74% Operating Income 1,381 1,413 1,627 1,964 12.45% 463 520 12.34% Other Operating Incom
Slide 9: …and where Bci has a relevant position in the market…
…and where Bci is has a relevant position in the market… Chilean banking system benchmark (local) Chilean banking system benchmark (consolidated) In US$mm, as of December 2019 In US$mm, as of December 2019 Other Other banks banks (12) (12) 14.2% 18.2% 14.1% 16.3% 14.0% 10.0% 13.2% 17.6% 18.1% 14.1%
Slide 10: Domestic loan growth
Domestic loan growth Total loans (US$mm) Commercial & Interbank loans (US$mm) 20.7% 43,677 24.7% 28,734 15.1% 40,302 14.0% 25,901 36,188 32,245 19,625 35,719 30,449 23,037 22,737 18,112 29,002 27,278 27,749 18,735 16,410 17,491 16,135 26,463 23,798 14,365 22,225 14,090 7,788 9,109 8,440 9,854 8,438
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Net income CAGR1 Total loans market share - local2 (%) March 2015 – March 2020 Median = 5.7% 3 Chile 24.5% 20.2% 7.9% 19.0% 3.5% 3.2% 18.0% 17.0% (14.7%) 16.4% +138 bps of 15.0% market share Return on average assets (ROAA)1 14.4% as of March 2020 13.8% 13.0% 1.6%
Slide 12: …with diversified and low funding cost…
…with diversified and low funding cost… In terms of maturity, currency and geography Funding Sources Breakdown by type1 Other Long term funding composed primarily of UF local bonds Liabilities 7.9% in the Chilean market, complemented by other Equity international issuances, through our EMTN program
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Cost of risk index (Allowances / Average Gross Loans) Bci's asset quality is supported by proactive risk management and monitoring, as well as a continued focus 3.1% 2.94% 2.93% Due to all these efforts, our risk ratios have remained at healthy levels over
Slide 14: Non-Performing Loans (NPLs)
Non-Performing Loans (NPLs) NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial & Interbank Loans) 1.49% 1.49% 1.42% 1.40% 1.41% 1.36% 1.36% 1.36% 1.31% 1.24% 1.25% 1.12% 2016 2017 2018 2019 1Q2019 1Q2020 2016 2017 2018 2019 1Q2019 1Q2020 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 2.62% 2.
Slide 15: Financial Services
Validar D Financial Services Total Loans (US MM$) 875.6 625.3 NPL Ratio 4.61% 4.25% Note: Figures are converted to US$ using an FX of USD/CLP of 852.03 (April 1st 2020) 15
Slide 16: Bci has implemented several initiatives that prepare it for the future
Bci has implemented several initiatives that prepare it for the future Our strategy is rapidly embracing digital transformation MACH: disruptive innovation rapidly penetrating the market 2,082,352 1,826,061 1,666,833 1,448,808 1,444,127 1,471,934 1,275,741 1,176,875 1,033,189 939,149 717,615 748,139
Slide 17: City National Bank of Florida
Bci Investor Relations City National Bank of Florida 17 17
Slide 18: Executive Summary
Executive Summary Strong Q1 loan growth was partially propelled by draws on lines of credit as pandemic started Strong DDA growth of $77MM was mitigated by $229MM of client interest bearing temporary deposit First Quarter outflows resulting from the COVID 19 pandemic (deposits are increasing in Apri
Slide 19: Balance Sheet Consolidated
Balance Sheet Consolidated $ Var % Var $ Var $ Var BALANCE SHEET ($ millions) Mar-19 Dec-19 Mar-20 QoQ QoQ YoY YoY QoQ loan growth is Commercial & Industrial $2,088 $2,080 $2,234 $154 7.4% $146 7.0% substantially due to draws on Commercial Mortgages $4,569 $5,061 $5,250 $189 3.7% $681 14.9% lines of
Slide 20: Total Customer Deposits
22% of our assets are comprised of liquid & low risk securities $16,241 $16,241 Total Other Assets $1,111 $1,948 Total Capital Total Interest $442 Bearing & Cash $257 Total Liabilities 21.9 % of Total $3,559 $2,144 Total Total Assets Investment Borrowings Securities Total Brokered $704 Deposits Net
Slide 21: We have a liquid balance sheet with ample off-balance sheet sources
We have a liquid balance sheet with ample off-balance sheet sources Total Assets Total Investments Source: City National Bank 21
Slide 22: We have a liquid balance sheet with ample off-balance sheet sources
We have a liquid balance sheet with ample off-balance sheet sources Our liquidity is strong with $5.2B of Total Liquidity Sources The Bank has ample On Balance Sheet Liquidity at 19.87% as of 3/31/2020 Unused availability at FHLB is over $793 million, which can be drawn at an instant An additional $
Slide 23: Our significant excess capital differentiates CNB from its US peers
Our significant excess capital differentiates CNB from its US peers We are entering this period of uncertainty with a significant capital buffer Excess capital will enable us to increase loan loss provisions while maintaining strong capital ratios Deployment of capital to lending is currently focuse
Slide 24: We are entering this period of uncertainty with exceptional asset quality
We are entering this period of uncertainty with exceptional asset quality NPLs are at historically low levels… … and as a result the Bank has incurred minimal charge-offs NPLs are at historically low levels while charge-offs are negligible for a bank with $11B+ of loans and leases Note: Data as of M
Slide 25: Our loan portfolio is substantially real estate secured with low LTVs
Our loan portfolio is substantially real estate secured with low LTVs Source: City National Bank 25
Slide 26: Consolidated Income Statement
Consolidated Income Statement Net interest income increased 1st Qtr 4th Qtr 1st Qtr $ Var % Var $ Var % Var QoQ by $4.2MM or 4.2% due INCOME STATEMENT ($ millions) 2019 2019 2020 QoQ QoQ YoY YoY to sharper reduction in cost of (+) Net Interest Income $102.8 $101.0 $105.3 $4.2 4.2% $2.4 2.4% funds (1
Slide 27: Our NIM expanded QoQ due to our ability to reduce our CoF
Our NIM expanded QoQ due to our ability to reduce our CoF …while Cost of Funds declined by 10bps due Yield on Earning Assets declined by 4 bps… to deposit cost reductions 3.89% 3.85% 1.09% 0.99% 4Q 2019 1Q 2020 4Q 2019 1Q 2020 …and increased Net Interest Income of …resulting in NIM expansion of 7bps
Slide 28: Key Metrics
Key Metrics 2014 2015 2016 2017 2018 2019 1Q 2020 Loans & Leases/ Assets 61.90% 62.40% 64.50% 69.44% 70.57% 68.96% 68.52% Loans / Deposits 79.60% 90.10% 95.00% 90.28% 89.57% 92.15% 93.58% DDA / Deposits 44.00% 43.30% 37.70% 32.16% 28.77% 29.87% 30.43% ROAA 0.85% 0.80% 0.96% 0.58% 0.76% 1.08% 0.83% N
Slide 29: Forward-looking statements disclaimer
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) — Q1 2020 Earnings Presentation on 6ix