Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q1 2022 Earnings Presentation
30 slides from Banco De Credito E Inversiones's earnings presentation, May 2022
Slide 1: Corporate Presentation 1Q 2022
Corporate Presentation 1Q 2022 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl May 2022
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 March 2022 • Largest bank in Chile (total loans) • 3rd Largest Florida-based bank US$88.26 bn US$53.35 bn (+22.4% YoY*) (+16.3% YoY*) Total asse
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. GDP growth scenarios1 (%, yoy) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 787.98 (April 1st 2022) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operations in Colom
Slide 6: Bci
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: • Bci has been recognized as the most responsible company in Chile • First bank in Chile to adhere to the Responsible Banking Principles of the United Nations Environment Program Finance Initiative (UNEP FI). •
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$mm, as of March 2022 In US$mm, as of March 2022 Other Other banks banks (12) (12) 14.7% 17.7% 14.1% 16.5% 14.1% 9.7% 13.3% 15.3% 18.1% 17.0% 14.7% 11.9% 9.2% 13.8% Loan breakdown1
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 787.98 (April 1st 2022) ; Include Co
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of March 2021 Chile 23.83% 22.67% 22.85% 16.93% 13.21% 10.60% +159 bps of market share Return on average assets (ROAA)1 as of March 2021 1.88% 1.39% 1.18% 0.88% 0.93% 0.82% Source: CMF as of March 2
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) *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 787.98 (April 1st 2022) 15
Slide 16: Controlling Operating Expenses
Controlling Operating Expenses Operating Expenses Expense Breakdown US$ million as of March 2022 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 cal
Slide 17: Aiming to become Chile's leading digital Bank
Aiming to become Chile’s leading digital Bank Bigger and more engaged High transaction growth Customer Base 3.3 2.9 2.5X 2.2X YoY millions millions YoY Growth of Growth of Registered users Net cards issued Local Digital Card Physical cards transactions >131K US$ 23.4 6.6X 31% millions YoY QoQ MACH P
Slide 18: Balance sheet
Balance sheet CAGR US$ million (*) 2018 2019 2020 2021 1Q 2021* 1Q 2022* %D 2018-2021 Cash 2,613 4,002 5,835 5,026 24.37% 7,519 5,913 27.15% Securities 6,689 7,907 11,632 18,244 39.72% 20,827 17,099 21.81% Loans 37,915 42,730 44,513 51,867 11.01% 53,350 45,968 16.06% Other Financial Instruments 76 1
Slide 19: Financial results
Financial results CAGR US$ million (*) 2018 2019 2020 2021 1Q 2021* 1Q 2022* %D 2017-2021 Net Interest Income 1,371 1,677 1,851 2,027 13.93% 510 613 20.10% Net Service Fee Income 389 446 426 440 4.21% 103 116 12.62% Operating Income 1,759 2,123 2,277 2,467 11.93% 613 729 18.85% Other Operating Incom
Slide 20: City National Bank of Florida
City National Bank of Florida
Slide 21: Executive Summary
Executive Summary • Loans (excluding PPP) have increased $1B QoQ or 8% as a result of new loan production that Balance Sheet significantly exceeds 2021 levels • Both our loan and deposit growth significantly higher than the industry: YoY (2x higher) & QoQ (3x) Evolution • Excess cash deployed via si
Slide 22: We increased our total assets by $2.4B or 12% YoY through purely organic means
We increased our total assets by $2.4B or 12% YoY through purely organic means Total Assets ($MM) Cash & Investments ($MM) QoQ increase: +$232MM +1% QoQ increase: -$587MM -8% YoY increase: +$2.4B +12% YoY increase: +$731MM +12% $7,417 $6,829 $21,891 $22,124 $6,099 $19,742 $6,099 Investment Portfolio
Slide 23: Our asset growth was propelled by deposit growth of $2.6B or 16% YoY
Our asset growth was propelled by deposit growth of $2.6B or 16% YoY that significantly exceeds the industry growth rate Client Deposits ($MM) Deposit Growth Rates (annualized) QoQ increase: +$402MM +2% Higher deposit growth than the industry both YoY (2x) and QoQ (3x) YoY increase: +$2.6B +16% $18,
Slide 24: Our loans (excluding PPP) have increased $1B QoQ or 8%
Our loans (excluding PPP) have increased $1B QoQ or 8% as a result of loan production, which significantly exceeds 2021 levels Total Loans & Leases ($MM) Loans and Leases Growth Rates (annualized) QoQ increase (non-PPP growth): +$979MM +8% Higher loans & leases growth than the industry both YoY (2x)
Slide 25: 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 CRE Breakdown as of 3/31/2022 $ Amount ($k) Loan Breakdown as of 3/31/2022 $ Amount ($k) Portfolio Avg LTVs Portfolio Avg LTVs Hotels $ 680,844 11% 53% C&I $ 3,062,836 22
Slide 26: Net income is 22% higher YoY
Net income is 22% higher YoY Q1 Q4 Q1 $ Var % Var $ Var % Var 2022 $ Var INCOME STATEMENT ($ millions) 2021 2021 2022 QoQ QoQ YoY YoY Budget (+) Net Interest Income $125.9 $137.8 $143.2 $5.4 3.9% $17.3 13.7% $138.8 $4.4 (+) Non-Interest Income $18.8 $22.2 $22.1 $0.0 -0.2% $3.4 17.9% $22.1 $0.0 (=) O
Slide 27: 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) +$17 (+26%) ($6) $3 $0 ($4) $83 $1 $24 $66 YTD Mar 2021 Net interest PPP & MSLP Non-interest Non-interest Gain on sale Others YTD Mar 2022 Net Income income (excl. origination fees income expense o
Slide 28: Net interest income, excluding PPP & MSLP, increased by $8.6MM or 7% QoQ
Net interest income, excluding PPP & MSLP, increased by $8.6MM or 7% QoQ Net interest income ($k) Net interest margin (%) $143,196 $137,799 $125,932 $7,043 $10,291 2.88% 2.74% 2.81% $13,747 0.14% 0.09% 0.14% $136,153 $127,508 $112,398 2.74% 2.72% 2.60% 1Q'21 4Q'21 1Q'22 1Q'21 4Q'21 1Q'22 Net Interes
Slide 29: We are well positioned for rising rates with 40% of our loan portfolio repricing over the next year
We are well positioned for rising rates with 40% of our loan portfolio (excluding PPP) repricing over the next year >$4.7B 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 29 Note: Excludes PPP loans
Slide 30: 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) — Q1 2022 Earnings Presentation on 6ix