Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q4 2021 Earnings Presentation
31 slides from Banco De Credito E Inversiones's earnings presentation, February 2022
Slide 1: Corporate Presentation 4Q 2021
Corporate Presentation 4Q 2021 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl February 2022
Slide 2: Bci at a glance
—_— Bci at a glance
Slide 3: Leading financial institution in Chile in Assets...
Leading financial institution in Chile in Assets... Profitable and financially sound Diversified business model Bci/Subsidiary Diversification as of December 2021 • Largest bank in Chile (total loans) US$81.88 bn US$49.28 bn • 3rd Largest Florida-based bank (+21.0% YoY) (+16.1% YoY) Total assets Tot
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. GDP growth scenarios1 (%, yoy) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 844.69 (January 3th 2022) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operations in Col
Slide 6: Bci Investor Relations
Bci Investor Relations Bci
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 Board of Directors is composed by experts in various fields, academics, economists, Private pension bankers and individuals connected with the worl
Slide 8: Sustainability is in our DNA: financial inclusion, environment, employees and investors
Sustainability is in our DNA: financial inclusion, environment, employees and investors: • 7 Green Bond issues in 2021 • Dow Jones Sustainability Index (DJSI) for MILA and Chile • Jan/22: Bci’s largest transaction in • First Chilean bank certified Switzerland (CHF 200 MM) “Carbon Neutral” and larges
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark (local) Chilean banking system benchmark (consolidated) In US$mm, as of December 2021 In US$mm, as of December 2021 Other Other banks banks (12) (12) 14.5% 18.1% 13.9% 16.9% 14.3% 9.8% 12.6% 19.3% 17.8% 14.9% 14.4% 11.6
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).as of December 2021 10 Note: Figures are converted to US$ using an FX of USD/CLP of 844.69 (January 3
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of December 2021 Chile 22.44% 20.11% 17.77% 17.04% 12.58% 10.82% +136 bps of market share Return on average assets (ROAA)1 as of December 2021 1.66% 1.33% 1.18% 0.85% 0.79% 0.72% Source: CMF as of D
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 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 Fra
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. Since 2020 we have built over US$ 325 Million in additional provisions. Our loan portfolio is well diversified by business lines, econom
Slide 14: Greater liquidity has mitigated a further increase in NPLs
Greater liquidity has mitigated a further increase in NPLs NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services 14 Note: Includes Bci subsidiary in USA (CNB)
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively Nota: Excludes all subsidiaries and City National Bank of Florida. 15 Figures are converted to US$ using an FX of USD/CLP of 844.69 (January 3th 2022)
Slide 16: Controlling Operating Expenses
Controlling Operating Expenses Operating Expenses Expense Breakdown US$ million as of December 2021 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Since 1Q18, additional allowances are not included in the
Slide 17: Aiming to become Chile’s leading digital Bank
Aiming to become Chile’s leading digital Bank Bigger and more engaged Customer Base 3.3 3.1 120K millions millions Registered users Net cards issued MACH Pay merchants 73% +35% NPS Balance Launch new products and services Started a pilot-plan for savings and investment products 17
Slide 18: Balance sheet
Balance sheet CAGR US$ million (*) 2017 2018 2019 2020 2021 2017-2021 Cash 1,771 2,437 3,734 5,443 4,689 27.56% Securities 5,600 6,240 7,376 10,851 17,019 32.03% Loans 28,779 35,369 39,861 41,525 48,385 13.87% Other Financial Instruments 263 71 139 77 62 -30.19% Fixed Assets 320 333 296 297 299 -1.6
Slide 19: Financial results
Financial results CAGR US$ million (*) 2017 2018 2019 2020 2021 2017-2021 Net Interest Income 1,107 1,279 1,564 1,727 1,891 14.33% Net Service Fee Income 318 363 416 397 410 6.56% Operating Income 1,425 1,641 1,981 2,124 2,301 12.74% Other Operating Income 210 235 259 282 257 5.23% Provision for loa
Slide 20: City National Bank of Florida
City National Bank of Florida
Slide 21: Executive Summary
Executive Summary • Loan production, excluding PPP, surpassed 2019 levels by 67%, resulting in 18% loan growth Balance • Total customer deposits increased by 24% YoY or twice the growth rate of the banking industry Sheet • Total assets increased by $3.4B YoY to $21.9B & investments represent 28% of
Slide 22: We increased our total assets by $3.4B or 18.2% in 2021 through purely organic means
We increased our total assets by $3.4B or 18.2% in 2021 through purely organic means Total Assets Asset Growth Rates QoQ increase: +$1.3B +6% YoY increase: +$3.4B +18% $21,891 $20,615 $18,514 4Q'20 3Q'21 4Q'21 Loans to Total Assets 66.54% 60.02% 60.66% Loans to Deposits 82.35% 72.13% 72.15% Loans re
Slide 23: Our asset growth was propelled by deposit growth of $3.5B or 24%
Our asset growth was propelled by deposit growth of $3.5B or 24% that significantly exceeds the industry growth rate Client Deposits Deposit Growth Rates QoQ increase: +$1.3B +7% YoY increase: +$3.5B +24% $18,379 $17,126 $14,838 $7,392 $6,948 Non-Interest Bearing $5,614 Customer Deposits Interest Be
Slide 24: The investment portfolio has increased to >$6B or 28% of total assets
The investment portfolio has increased to >$6B or 28% of total assets and 94% of the portfolio is comprised of Agency securities Investment Portfolio & Cash Portfolio Composition QoQ increase: +$308MM +4% YoY increase: +$2.4B +47% $7,109 $7,417 $1,317 $1,355 $5,041 Cash $940 $6,099 $5,754 $4,101 Inv
Slide 25: Our loan growth rate, excluding PPP, reached $1.9B or 18%
Our loan growth rate, excluding PPP, reached $1.9B or 18% as a result of loan production that significantly exceeds 2019 levels Total Loans & Leases Loan Production QoQ increase (non-PPP growth): +$1.2B +11% ’19 vs ’21 Total Growth: +$3B +91% YoY increase (non-PPP growth): +$1.9B +18% ’19 vs ’21 Gro
Slide 26: Our 2021 loan production is well diversified
Our 2021 loan production is well diversified Only 41% of our 2021 production is in Commercial Real Estate 26 Figures in millions ($)
Slide 27: Asset quality is strong and deferments have declined to minimal levels
Asset quality is strong and deferments have declined to minimal levels Loan Deferments ($MM) Non-Performing Loans ($000’s) $103,115 Reduced deferments from ~$3bn to $21MM as of December 31st $59,691 $47,424 Dec-19 Dec-20 Dec-21 NPL Ratio (%) 0.43% 0.96% 0.51% Past Due Ratio (%) 0.28% 0.75% 0.28% Def
Slide 28: Core earnings increased by $34.5MM or 11.8% YoY
Core earnings increased by $34.5MM or 11.8% YoY Q4 Q3 Q4 % Var YTD YTD $ Var % Var 2021 $ Var % Var INCOME STATEMENT ($ millions) 2020 2021 2021 QoQ 2020 2021 YoY YoY Budget (+) Net Interest Income $131.6 $132.0 $137.8 4.4% $461.2 $526.7 $65.6 14.2% $447.4 $79.4 17.74% (+) Non-Interest Income $18.2
Slide 29: Net interest income, excluding PPP & MSLP, increased by $3.4MM or 3% QoQ
Net interest income, excluding PPP & MSLP, increased by $3.4MM or 3% QoQ Net interest income ($) Net interest margin (%) $137,799 $131,622 $132,041 3.05% 2.74% $10,291 2.69% $14,334 $7,935 0.43% $11,496 0.06% 0.14% $124,106 $127,508 2.62% 2.63% 2.60% $105,793 4Q'20 3Q'21 4Q'21 4Q'20 3Q'21 4Q'21 Net
Slide 30: We are well positioned for rising rates with 41% of our loan portfolio repricing
We are well positioned for rising rates with 41% of our loan portfolio (excluding PPP) repricing over the next year 35% of our loans reprice withing three 35% months 6% 5% 5% $12.3B 3.26 Non-interest DDAs represent 40% of % $12.6B WAR our client deposits 3.56% 17% 22% 15% $325MM of long term forward
Slide 31: 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
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