Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2022 Earnings Presentation
32 slides from Banco De Credito E Inversiones's earnings presentation, November 2022
Slide 1: Corporate Presentation 3Q 2022
Corporate Presentation 3Q 2022 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl November 2022
Slide 2: Bci at a glance
—_— Bci at a glance He.
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 September 2022 • Largest bank in Chile (total loans) US$85.1 bn US$51.1 bn • 3rd Largest Florida-based bank (+26.9% YoY) (+25.5% YoY) Total asse
Slide 4: Chilean financial system
—_— Chilean financial system He.
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 960.24 (October 3rd, 2022) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca oper
Slide 6: Bci Consolidated
Bci Investor Relations 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 Board of Directors is composed by experts in various fields, academics, Private pension economists, bankers and individuals connected with the worl
Slide 8: Sustainability is in our DNA
Sustainability is in our DNA: financial inclusion, environment, transparency, responsibility, empathy, employees and investors. ● Bci Wholesale & Investment Banking implemented the PCAF methodology to measure the portfolio financed emissions. ● Bci Corredor de Bolsa presented its 2023 Stock Market R
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark Chilean banking system benchmark In US$mm, as of September 2022 In US$mm, as of September 2022 Other Other banks banks (12) (12) 14.8% 17.2% 14.1% 16.1% 14.7% 10.0% 13.3% 15.5% 19.9% 14.6% 14.6% 12.8% 9.4% 13.2% Loan br
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). 10 Note: Figures are converted to US$ using an FX of USD/CLP of 960.24 (October 3rd, 2022) ; Include
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) as of September 2022 Chile 31.83% 31.18% 26.24% 16.91% 18.26% 13.29% +126 bps of market share Return on average assets (ROAA)1 as of September 2022 2.59% 1.45% 1.35% 1.18% 1.09% 1.06% Source: CMF as of
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. We have a stock of over US$ 414 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sec
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) *Not includes the Interbank loans
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively Figures are converted to US$ using an FX of 960.24 (October 3rd, 2022) 15
Slide 16: Operating Expenses have been controlled
Operating Expenses have been controlled Operating Expenses (YTD) Expense Breakdown US$ million as of September 2022 Sep’21 Sep’22 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Since 1Q18, additional allow
Slide 17: In the short term we will have a fully deployed Digital Bank offer
In the short term we will have a fully deployed Digital Bank offer Main account Daily Use Cases Financial products Cash in Top-ups Credits Salary payment In-store deposit Phone Internet BNPL Credit Card '23 Credit/debit card Mortgage Consumer Bank transfer Entertainment payment '23 Money administrat
Slide 18: MACH is a key part in the construction of this Ecosystem
MACH is a key part in the construction of this Ecosystem Strong transactional ….fledgling business with growth… Savings Account: Cuenta Futuro great potential ~13% NIBDs MACH Business Growth +58% QoQ (amount) +130K merchants Users YoY1 +2X QoQ (average balance) 70.000 average ~18% Accounts for 16% o
Slide 19: Balance sheet
Balance sheet CAGR US$ million (*) 2018 2019 2020 2021 3Q 2021* 3Q 2022* %D 2018-2021 Cash 2,144 3,284 4,788 4,124 24.37% 3,692 4,654 26.05% Securities 5,489 6,489 9,546 14,971 39.72% 19,336 21,242 9.86% Loans 31,113 35,064 36,528 42,562 11.01% 40,723 51,118 25.53% Other Financial Instruments 62 122
Slide 20: Financial results
Financial results CAGR US$ million (*) 2018 2019 2020 2021 3Q 2021* 3Q 2022* %D 2017-2021 Net Interest Income 1,125 1,376 1,519 1,664 13.93% 438.2 601.8 37.34% Net Service Fee Income 319 366 349 361 4.21% 102.0 97.1 -4.85% Other Operating Income 207 228 248 226 3.00% 26.4 -4.7 -118.0% Operating Inco
Slide 21: City National Bank of Florida
City National Bank of Florida
Slide 22: Executive Summary
Executive Summary • Core loans (excl. PPP) increased $1.2B (+8.2%) QoQ and $4.3B (+38.2%) YoY, exceeding the Balance banking industry average; Already strong asset quality ratios continued to improve in the 3rd quarter Sheet • Client deposits increased $922MM (+5.4%) YoY, but declined in the quarter
Slide 23: We increased our total assets by $1B QoQ while maintaining significant on-balance sheet liquidity
We increased our total assets by $1B QoQ while maintaining significant on-balance sheet liquidity Total Assets ($MM) Cash & Investments ($MM) QoQ increase: +$1B +4.3% QoQ decrease: -$167MM -2.3% YoY increase: +$3.6B +17.3% YoY decrease: -$115MM -1.6% $23,178 $24,176 $7,109 $7,161 $6,994 $20,615 $5,7
Slide 24: Largest market share in Miami-Dade County after the four largest money-center banks
We have the largest market share in Miami-Dade County after the four largest money-center banks due to over $900MM of deposit growth YoY Client Deposits ($MM) Deposit Market Share – Miami Dade County QoQ decrease: -$911MM -4.8% CNB maintains the largest deposit market share in Miami-Dade County YoY
Slide 25: Our loans (excluding PPP) have increased $1.2B QoQ or 8.2%
Our loans (excluding PPP) have increased $1.2B QoQ or 8.2% as a result of loan production, which significantly exceeds the industry Total Loans & Leases ($MM) Loans and Leases Growth Rates (annualized) Higher loan & lease growth than the industry QoQ (3x), YTD (~2.5x) QoQ increase (non-PPP growth):
Slide 26: Our loan portfolio is diversified with real estate secured loans at a low weighted average LTV of 56%
Our loan portfolio is diversified with real estate secured loans at a low weighted average LTV of 56% % of Weighted % of Weighted Loan Breakdown as of 9/30/2022 $ Amount ($k) CRE Breakdown as of 9/30/2022 $ Amount ($k) Portfolio Avg LTVs Portfolio Avg LTVs C&I $ 3,590,054 22% N/A Hotels $ 761,667 11
Slide 27: Asset quality is strong with non-performing loans and past dues at the lowest levels
Asset quality is strong with non-performing loans and past dues at the lowest levels in three years Loan Deferments ($MM) Non-Performing Loans ($000’s) Reduced deferments from ~$3bn to $3MM as of September 30th $103,115 $2,560 $59,691 $50,376 $1,955 $676 Dec-20 Dec-21 Sep-22 $290 $119 $84 $37 $21 $3
Slide 28: Net income is 17% higher than prior year principally driven by net interest income growth
Net income is 17% higher than prior year principally driven by net interest income growth $ Var % Var YTD YTD $ Var % Var INCOME STATEMENT ($ millions) 3Q'21 2Q'22 3Q'22 QoQ QoQ 2021 2022 YoY YoY (+) Net Interest Income $132.0 $160.8 $164.2 $3.4 2.1% $388.9 $468.2 $79.3 20.4% (+) Non-Interest Income
Slide 29: Our net income improvement was mainly driven by increasing core net interest income
Our net income improvement was mainly driven by increasing core net interest income (excl. PPP & MSLP) +$65 (+30%) ($17) $14 ($26) $283 ($4) $2 $96 $218 YTD 2021 Net interest PPP & MSLP Non-interest Non-interest Gain on sale Others YTD 2022 Net Income income (excl. origination fees income expense of
Slide 30: Non-interest income has increased by 25% YoY
Non-interest income has increased by 25% YoY +$14.2 (+25%) $71.2 Total service charges on deposit accounts Swap Fees $6.4 increased $2.5MM YoY (11.9%), due to increased Other Income treasury management fees and wire transfer fees $57.0 $9.7 and commissions as deposits have significantly Other Inco
Slide 31: We are well positioned for rising rates with 40% of our loan portfolio repricing within one year
We are well positioned for rising rates with 40% of our loan portfolio (excluding PPP) repricing within one year >$5.5B or 35% of loans reprice within next three months Fixed rate loans offer income stability to help NIM Floating rate loans mostly tied to 1M LIBOR (new origination indexed to SOFR) 3
Slide 32: 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) — Q3 2022 Earnings Presentation on 6ix