Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2023 Earnings Presentation
29 slides from Banco De Credito E Inversiones's earnings presentation, November 2023
Slide 1: Corporate Presentation 3Q 2023
Corporate Presentation 3Q 2023 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl November 2023
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 September 2023 • Largest bank in Chile (total loans) US$90.37bn US$55.57bn • 3rd Largest Florida-based bank (-0.75% YoY) (+2.0% YoY) Total asset
Slide 4: Chilean financial system
Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 895.60 (October 2nd 2023) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca opera
Slide 6: Bci Consolidated
\ 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 Private pension Board of Directors is composed by experts in various fields, academics, economists, funds bankers and individuals connected with th
Slide 8: Largest Digital Ecosystem in Chile: MACH platform
Largest Digital Ecosystem in Chile Leveraging Capabilities to Deliver a Differentiated Value Proposition, Paving the Way to Increase Profitability MACH: Chile’s Largest Digital Platform Wallet With an Exponentially Increasing Number of Clients Evolution of MACH’s Clients Base In-App Use Fin. Product
Slide 9: MACH: Higher active users with increased transactionality
Largest Digital Ecosystem in Chile Leveraging Capabilities to Deliver a Differentiated Value Proposition, Paving the Way to Increase Profitability MACH: Higher Number of Active Users has Come Hand-by-Hand With Increased Transactionality Across Products Client Base Number of Transactions Average Tran
Slide 10: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark In US$mm, as of September 2023 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 14.4% 17.1% 15.2% 16.2% 14.1% 9.8% 13.2% 15.4% 18.9% 15.5% 14.8% 12.5% 9.5% 13.4% Commercial Consumer Mortgage Deposits1 Net incom
Slide 11: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) CAGR CAGR Source: Financial Market Commission (CMF). Note: Figures are converted to US$ using an FX of USD/CLP of 895.60 (October 2nd 2023); Include Corp
Slide 12: Successful organic growth in Chile…
Successful organic growth in Chile… Local loans market share2 (%) Return on average Equity (ROAE)1 as of September2023 Chile 25.63% 21.47% 14.61% 13.86% 11.26% 11.26% +52bps of market share Return on average assets (ROAA)1 as of September 2023 2.26% 1.12% 0.91% 0.96% 0.93% 0.67% Source: CMF as of Se
Slide 13: Capital Increase Expected to Position Bci Above Basel III Ratios
Capital Increase is Expected to Position Bci Above the Capital Ratios Imposed by Basel III Basel III implementation for Bci: 120 pb Estimated Impact +312pb of Capital Increase(1) 10,99% • Bci’s capital management policies 9,79% 1,20% Counter- contemplate implementing Cyclical additional capital buff
Slide 14: …with diversified and funding cost
…with diversified and 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 Francs,
Slide 15: Risk Evolution
Risk Evolution 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$ 480 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sectors, and custome
Slide 16: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services Note: Includes Bci subsidiary in USA (CNB) *Does not include Interbank loans
Slide 17: Financial Services: NPL's
Financial Services: NPL's Figures are converted to US$ using an FX of 895.60 (October 2nd 2023)
Slide 18: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of September 2023 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Since 1Q18. Note: Figures are converted to USD using an FX of 89
Slide 19: Balance sheet
Balance sheet CAGR US$ million (*) 2019 2020 2021* 2022* 3Q 2022* 3Q 2023* %D 2019-2022 Cash 3,521 5,134 4,628 4,753 10.51% 4,990 4,248 -14.86% Securities 6,957 10,235 21,580 22,272 47.38% 22,775 22,397 -1.66% Loans 37,595 39,164 49,073 52,497 11.77% 54,807 55,568 1.39% Other Financial Instruments 1
Slide 20: Financial results
Financial results CAGR US$ million (*) 2019 2020 2021* 2022* 3Q 2022* 3Q 2023* %D 2018-2022 Net Interest Income 1,476 1,629 1,784 2,579 20.46% 645.2 530.2 -17.83% Net Service Fee Income 393 375 387 410 1.42% 104.1 98.4 -5.48% Other Operating Income 244 266 243 25 -53.16% -5.1 15.1 -396.3% Operating
Slide 21: City National Bank of Florida
City National Bank of Florida
Slide 22: Strengthened liquidity position in 2023, increased capital ratios, well-managed CRE
We have strengthened our liquidity position in 2023, increased our capital ratios and our CRE portfolio is well managed Insured Client Deposits Liquidity Capital Investments CRE Deposits Client deposits We maintained We reduced our Our CET 1 ratio 98% of our Our commercial have remained ~$11B of uni
Slide 23: Client deposits have remained stable
Despite turmoil and deposits outflows in the banking system, our client deposits have remained stable Total Deposits ($MM) Banking Industry - Total Deposits ($B) QoQ change: -$512MM -2.3% QoQ change: +$44B +0.3% +$1,229 (+6%) ($340) $21,994 (-2%) $21,482 $20,253 $17,725 $3,939 $17,340 $17,385 Broker
Slide 24: Liquidity and capital ratios are strong and have improved
Liquidity and capital ratios are strong and have improved across the board since 2022 year-end Liquidity and Capital ratios Actual Ratio Var st th Dec 31 , 2022 Sept 30 , 2023 (Sept 30th st vs Dec 31 ) TCE Ratio (excl. HTM) 7.57% 7.79% 0.21% TCE Ratio (incl. HTM) 6.57% 6.59% 0.02% Uninsured & Uncoll
Slide 25: Core loans grew moderately while maintaining strong asset quality
Our core loans grew moderately by $165MM QoQ and $1B YTD while maintaining strong asset quality Total Assets ($MM) Total Loans & Leases ($MM) QoQ change: -$272MM -1.0% Core loans QoQ change: +$165MM +1.0% Non-owner +$821 occupied CRE represents (+3%) 47% of total $17,330 $17,476 portfolio $25,218 $2
Slide 26: CRE loans well diversified across property types
CRE loans are well diversified across various property types with low LTVs, strong DSC and excellent asset quality CRE by Property Type % % % Commitment % Balance % % of Wavg Wavg Accr Non- in Property Type ($M) Total ($M) Total RBC LTV % DSCR % 30+ DPD Accrual Florida Retail 2,242 22.2% 2,129 25.4%
Slide 27: Retail is the largest category within CRE
Retail is the largest category within CRE and is well diversified by collateral type. Similarly, our office CRE segment is soundly underwritten and focused on Class A&B properties CRE Retail by Collateral Type CRE Office by Collateral Type Single Non-Credit Tenant 6% Medical Office 18% Single Tenant
Slide 28: Operating income so far in 2023 was 15.5% lower than 2022
Operating income so far in 2023 was 15.5% lower than 2022 $ Var % Var YTD YTD $ Var % Var INCOME STATEMENT ($ millions) 4Q'22 2Q'23 3Q'23 QoQ QoQ 2022 2023 YoY YoY (+) Net Interest Income $158.6 $127.6 $114.7 -$12.9 -10.1% $468.2 $387.1 -$81.1 -17.3% (+) Non-Interest Income $25.1 $23.1 $23.9 $0.7 3.
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) — Q3 2023 Earnings Presentation on 6ix