Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2019 Earnings Presentation
23 slides from Banco De Credito E Inversiones's earnings presentation, November 2019
Slide 1: Investor Relations Department
Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl Novembre 2019
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 2019-2020 Total loans in the banking system1 (US$bn) CHILE. Evolution of GDP growth projections 2019-2020 NPL 5.0 4.5 219.6 245.6 244.5 4.0 206.7 195.5 3.5 1.93% 1.90% 1.90% 3.0 1.86% 1.85% 2.5 2.0 GDP 2020 1.5 GDP 2019 1.
Slide 4: Bci at a glance
Bci Investor Relations Bci at a glance
Slide 5: Leading financial institution in Chile by assets…
Leading financial institution in Chile by assets… Profitable and financially sound Diversified business model as of September 2019 Largest bank in Chile (total assets) 1 US$64.6 bn US$45.0 bn 3rd Largest Florida-based bank (+18.9% YoY) (+12.7% YoY) Total assets Total loans CNB : 24% Assets US$443 mm
Slide 6: …with a successful strategy supported by its strong corporate governance
…with a successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Private Board of Directors is composed by experts in various pension fields, academics, economists, bankers and individuals funds connected w
Slide 7: …Balance sheet
…Balance sheet US$ million (*) 2015 2016 2017 2018 CAGR Sep 2018 Sep 2019 %D 2015-2018 Cash 1,748 2,166 2,054 2,827 17.39% 2,532 3,319 31.10% Securities 5,090 5,209 6,496 7,238 12.45% 7,162 7,714 7.71% Loans 27,382 30,455 33,383 41,027 14.43% 39,281 44,073 12.20% Other Financial Instruments 362 418
Slide 8: …Financial results
…Financial results CAGR US$ million (*) 2015 2016 2017 2018 Sep 2018 Sep 2019 %D 2015-2018 Net Interest Income 1,099 1,243 1,284 1,483 12.04% 1,074 1,335 24.30% Net Service Fee Income 322 373 369 420 13.00% 301 363 20.35% Operating Income 1,421 1,616 1,653 1,904 12.25% 1,375 1,698 23.44% Other Opera
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$mm, as of September 2019 In US$mm, as of September 2019 Other Other banks banks (12) (12) 13.9% 18.1% 14.2% 16.8% 13.9% 10.1% 13.0% 17.2% 17.0% 15.2
Slide 10: …increasing our stake in the retail Segment…
…increasing our stake in the retail Segment… Total loans (US$mm) Commercial & Interbank loans (US$mm) 10.9% 5.6% 10.1% 7.1% 34,013 31,917 19,936 30,666 18,879 18,878 27,844 16,486 16,807 26,004 15,387 23,915 11.6% 9.7% 7.9% 5.9% 2015 2016 2017 2018 3Q2018 3Q2019 2015 2016 2017 2018 3Q2018 3Q2019 Sys
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Net income CAGR1 Total loans market share - local2 (%) September 2015 – September 2019 Median = 6.7% 3 15.0% Chile 14.3% 20.0% 7.2% 4.0% 1.6% 17.9% 18.0% (15.5%) 16.9% 16.0% Return on average assets (ROAA)1 +92 bps of as of September 2019 market share 13.9% 14.0%
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 Other Liabilities the Chilean market, complemented by other international 15.9% Equity 7.8% Demand issuances, through our
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Cost of risk index (Allowances / Average Gross Loans) Bci Our loan growth has been accompanied by a well-established risk Santander tolerance framework, which aims to decrease the credit risk perceived from Chile loans from origination to the collection pro
Slide 14: Non-Performing Loans (NPLs)
Non-Performing Loans (NPLs) NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial & Interbank Loans) 1.63% 1.58% 1.55% 1.41% 1.48% 1.48% 1.42% 1.40% 1.36% 1.24% 1.10% 1.02% 2015 2016 2017 2018 3Q2018 3Q2019 2015 2016 2017 2018 3Q2018 3Q2019 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 2.32% 1.
Slide 15: 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 1,666,833 1,448,808 1,275,741 939,149 1,033,189 550,000 556,705 255,042 264,336 68,770 Jun'18 Sep'18 Dec'18 Jun'1
Slide 16: City National Bank of Florida
Bci Investor Relations City National Bank of Florida 16 16
Slide 17: CNB at a Glance
CNB at a Glance Balance Sheet as of Sept 30, 2019 Revenue Breakdown as of Sept 30, 2019 (YTD) Assets Liabilities & Equity In US$ M $15,248 $15,248 2% 1% 4% Gross Credit Portfolio Composition as of Sept 30, 2019 Funding Structure and Deposits as of Sept 30, 2019 Source: City National Bank Note: Credi
Slide 18: Balance Sheet Consolidated
Balance Sheet Consolidated Sep-18 Dec-18 Jun-19 Sep-19 $ Var QoQ % Var QoQ $ Var YoY $ Var YoY BALANCE SHEET ($ millions) Commercial & Industrial $2,055 $2,041 $2,112 $2,062 ($50) -2.4% $7 0.3% Commercial Mortgages $4,511 $4,518 $4,686 $4,958 $273 5.8% $448 9.9% Residential Mortgages $2,061 $2,101 $
Slide 19: Financial Highlights: Sustained and Stable Growth
Financial Highlights: Sustained and Stable Growth Net Loans (US$BN) as of Sept 30, 2019 Deposits (US$BN) as of Sept 30, 2019 ‘16-’19 ‘16-’19 CAGR: 26% CAGR: 27% Tier 1 Capital (US$MM) as of Sept 30, 2019 *Net Income (US$MM) as of Sept 30, 2019 YTD 2018 - $27.5MM Transaction and other one time expens
Slide 20: Consolidated Income Statement
Consolidated Income Statement 3rd Qtr 4th Qtr 2nd Qtr 3rd Qtr $ Var $ Var INCOME STATEMENT ($ millions) 2018 2018 2019 2019 QoQ % Var QoQ YTD 2018 YTD 2019 YoY % Var YoY (+) Net Interest Income $101.5 $100.9 $100.8 $100.6 -$0.2 -0.2% $254.3 $304.3 $50.0 19.7% (+) Non-Interest Income $11.0 $12.2 $14.
Slide 21: Key Metrics
Key Metrics 2014 2015 2016 2017 2018 2019 Q3 2019 Loans & Leases/ Assets 61.90% 62.40% 64.50% 69.44% 70.57% 70.18% 70.18% Loans / Deposits 79.60% 90.10% 95.00% 90.28% 89.57% 92.59% 92.59% DDA / Deposits 44.00% 43.30% 37.70% 32.16% 28.88% 30.00% 30.00% ROAA 0.85% 0.80% 0.96% 0.58% 0.76% 1.08% 1.12% N
Slide 22: Executive Banking Corporation Franchise Overview
Executive Banking Corporation Franchise Overview Franchise Overview Historical Financial Performance Privately-held community bank in Miami, which offers a (Dollars in US$ Thousands) Year Ended December 31, YTD as of comprehensive range of traditional banking products and services 2017 2018 9/30/201
Slide 23: 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 2019 Earnings Presentation on 6ix