Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q4 2019 Earnings Presentation
23 slides from Banco De Credito E Inversiones's earnings presentation, February 2020
Slide 1: Investor Relations Department, February 2020
Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl February 2020
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) NPL 5.0 4.5 219.6 245.6 244.6 206.7 4.0 195.5 2.07% 3.5 3.0 1.93% 1.90% 2.5 1.86% 1.85% 2.0 GDP 2020 1.5 GDP 2019 1.0 2015 2016 2017 2018 2019 0.5 Source: CMF 0.0 Note:
Slide 4: Bci at a glance
Bci Investor Relations Bci at a glance
Slide 5: Leading financial institution in Chile in Loans…
Leading financial institution in Chile in Loans… Profitable and financially sound Diversified business model as of December 2019 Largest bank in Chile (total loans) US$67.2 bn US$45.9 bn 3rd Largest Florida-based bank (+21.7% YoY) (+12.8% YoY) Total assets Total loans CNB : 24% Assets US$538 mm Bci
Slide 6: …with a successful strategy supported by its strong corporate governance
…with a successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Private Board of Directors is composed by experts in various pension fields, academics, economists, bankers and individuals funds connected w
Slide 7: …Balance sheet
…Balance sheet CAGR US$ million (*) 2015 2016 2017 2018 2019 2015-2019 Cash 1,700 2,107 1,998 2,750 4,212 25.47% Securities 4,951 5,066 6,318 7,039 8,322 13.86% Loans 26,631 29,620 32,467 39,902 44,969 13.99% Other Financial Instruments 352 407 297 80 157 -18.32% Fixed Assets 377 373 361 376 334 -3.
Slide 8: …Financial results
…Financial results CAGR US$ million (*) 2015 2016 2017 2018 2019 2015-2019 Net Interest Income 1,069 1,209 1,249 1,443 1,765 14.53% Net Service Fee Income 313 363 359 409 470 13.47% Operating Income 1,382 1,572 1,607 1,852 2,235 14.30% Other Operating Income 183 145 237 266 292 11.34% Provision for
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$mm, as of December 2019 In US$mm, as of December 2019 Other Other banks banks (12) (12) 14.0% 18.0% 14.2% 16.5% 14.0% 10.1% 13.2% 17.3% 17.4% 14.9%
Slide 10: Domestic loan growth
Domestic loan growth Total loans (US$mm) Commercial & Interbank loans (US$mm) 10.5% 11.6% 8.3% 12.3% 34,649 31,042 20,611 27,081 18,361 25,291 16,034 16,347 23,260 14,966 8.4% 9.9% 6.9% 10.1% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 System Consumer lending loans (US$mm) Mortgage loans (US$m
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Net income CAGR1 Total loans market share - local2 (%) December 2015 – December 2019 Median = 5.1% 3 10.4% 14.3% Chile 7.2% 5.2% 20.0% 1.6% 18.0% 17.9% (15.5%) 16.7% 16.0% Return on average assets (ROAA)1 +117 bps of as of December 2019 market share 14.2% 14.0% 3
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 Other Long term funding composed primarily of UF local bonds in Liabilities Equity the Chilean market, complemented by other international 16.9% 7.5% 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 Chile perceived from 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) 1.48% 1.42% 1.40% 1.41% 1.36% 1.34% 1.24% 1.29% 1.12% 1.02% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 2.29% 1.66% 1.92% 1.48% 1.42% 1.46% 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 1,826,061 1,448,808 1,444,127 1,033,189 939,149 717,615 556,705 68,770 Jun 2018 Dec 2018 Jun 2019 Dec 2019 Mach U
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 Revenue Breakdown as of Dec 31, 2019 (YTD) Balance Sheet as of Dec 31, 2019 Assets Liabilities & Equity CRE In US$ M $15,841 $15,841 2% 3% 7% Investments & 3% Cash Residential Total Net Loans Deposits 42% Commercial 16% US$ 644MM Securities 69% Other 75% Borrowings Other Loans Others
Slide 18: Balance Sheet Consolidated
Balance Sheet Consolidated Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 $ Var QoQ % Var QoQ $ Var YoY $ Var YoY BALANCE SHEET ($ millions) Commercial & Industrial $2,041 $2,088 $2,112 $2,062 $2,080 $18 0.9% $39 1.9% Commercial Mortgages $4,518 $4,569 $4,686 $4,958 $5,061 $103 2.1% $543 12.0% Residential Mortg
Slide 19: Financial Highlights: Sustained and Stable Growth
Financial Highlights: Sustained and Stable Growth Net Loans (US$BN) as of Dec 31, 2019 Deposits (US$BN) as of Dec 31, 2019 5% 8% 11.9 11.0 11.3 10.2 7.1 7.8 5.4 5.6 ‘16-’19 ‘16-’19 CAGR: 27% CAGR: 29% 43% 2016 2017 2018 2019 2016 2017 2018 2019 Tier 1 Capital (US$MM) as of Dec 31, 2019 *Net Income (
Slide 20: Consolidated Income Statement
Consolidated Income Statement 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ Var $ Var INCOME STATEMENT ($ millions) 2018 2019 2019 2019 2019 QoQ % Var QoQ YTD 2018 YTD 2019 YoY % Var YoY (+) Net Interest Income $100.9 $102.8 $100.8 $100.6 $101.0 $0.4 0.4% $355.1 $405.3 $50.2 14.1% (+) Non-Interest Incom
Slide 21: Key Metrics
Key Metrics 2014 2015 2016 2017 2018 2019 Q4 2019 Loans & Leases/ Assets 61.90% 62.40% 64.50% 69.44% 70.57% 68.96% 68.96% Loans / Deposits 79.60% 90.10% 95.00% 90.28% 89.57% 92.15% 92.15% DDA / Deposits 44.00% 43.30% 37.70% 32.16% 28.77% 29.87% 29.87% ROAA 0.85% 0.80% 0.96% 0.58% 0.76% 1.08% 1.09% N
Slide 22: Bci's initiatives are supported by its Change Management Plan
Bci’s initiatives are supported by its Change Management Plan Collaborative, adaptive and meritocratic culture Attract the best talent We have strengthened our employee value proposition to attract and retain talent all across the Bank : • In areas that are critical to the digital Organizational tra
Slide 23: 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) — Q4 2019 Earnings Presentation on 6ix