Banco De Chile · BCS:CHILE
Banco De Chile — Q4 2024 Earnings Presentation
26 slides from Banco De Chile's earnings presentation, Feb 13, 2025
Slide 1: Earnings Presentation Full Year 2024 & 4Q24
Earnings Presentation Full Year 2024 & 4Q24 February 13th, 2025
Slide 2: 2024: Another Successful Year
2024: Another Successful Year 2024 Awards Leader in Most Capitalized Strongest Risk #1 Best Bank to work in Chile Financial Results Bank1 Indicators1 #2 Best Corporate Reputation #1 in Net Income CET 1 Ratio: 14.4% 265% Coverage Ratio Merco Chile #1 in Net Fees $700 Bn Add. Provisions #1 in NII #1 B
Slide 3: Economic & Banking Industry Overview
Economic & Banking Industry Overview 1
Slide 4: GDP growth continues improving
GDP growth continues improving Monthly GDP Breakdown Chile’s GDP Growth Ma3, YoY, % YoY, % Cientos 6.0% Commerce Services 3.7% 2.0% -2.0% 2.5% 2.3% -6.0% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 1.6% Unemployment Rate (% of Labor Force) 8.9% 0.6% 8.8% 0.4% 8.7% 8.7% 0.3% 8.5% 8.5% 8.3
Slide 5: Higher than expected prices and rates
Higher than expected prices and rates Headline and Ex Volatile CPI Overnight Rate YoY, % EoP, % 16% 12% CPI CPI ex volatile 14% 10% 12% 10% 8% 8% 6% 6% 5.00% 4.5% 4% 4% 4.3% 2% 2% 0% 0% Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Ja
Slide 6: Chile: Baseline Scenario
Chile: Baseline Scenario Banco de Chile’s Forecast YoY, % 2020 2021 2022 2023 2024f 2025f GDP -6.1 11.3 2.1 0.2 2.5 2.0 Consumption -6.6 19.5 2.6 -3.9 1.8 1.7 Investment -10.8 16.0 3.9 -1.1 -0.8 4.5 Exports -0.9 -1.5 0.8 -0.3 6.0 3.0 Imports -12.3 31.9 1.5 -12.0 3.0 4.5 CPI 3.0 7.2 12.8 3.9 4.5 3.8
Slide 7: Results continue robust despite a sluggish loan growth
Results continue robust despite a sluggish loan growth Quarterly Net Income Nominal Loan Growth Breakdown1 Billions of CLP YoY Net Income ROAC Commercial Mortgage Consumer Total Loans 1,325 1,346 1,308 1,243 1,172 1,220 14.3% 1,148 1,050 13.7% 949 10.1% 6.2% 6.9% 4.6% 18.6% 18.8% 17.2% 16.8% 4.0% 16
Slide 8: Strategic Priorities and Advances
Strategic Priorities and Advances 2
Slide 9: Key pillars of our strategy
Key pillars of our strategy STRATEGIC PILLARS CORE PRIORITIES MID-TERM TARGETS • Return on Average Capital CUSTOMER CENTRICITY and Reserves1 Target: Top 1 Customers first and at the centre of Accelerate Boost Dec-24: Top 1 everything we do. digital business solutions activity • Cost to Income Ratio
Slide 10: Strategic initiatives highlights
Strategic initiatives highlights DIGITAL BANKING EFFICIENCY AND ESG “Best Bank for our Customers” PRODUCTIVITY “Committed to Chile” • +36% FAN accounts and launch of new “Fast, Timely, Secure and Digital” • Support to SMEs: Market-leading digital products such as “FAN Ahorro” and • Advances in Branc
Slide 11: Full Year 2024 & 4Q24 Financial Results
Full Year 2024 & 4Q24 Financial Results 3
Slide 12: Leading market position in financial results
Leading market position in financial results Quarterly Net Income¹ Annual Net Income ROAA2 Billions of CLP Billions of CLP Return on Average Assets 1,207 BCH Santander BCI 386 324 865 2.3% 298 288 298 802 1.7% 1.6% 457 1.2% 377 1.1% 1.0% 4Q23 1Q24 2Q24 3Q24 4Q24 BCH Santander BCI Scotiabank Itau 201
Slide 13: The highest and most consistent margins in the industry
The highest and most consistent margins in the industry NIM Operating Revenues Net Interest Income/Avg. Interest Earnings Assets, Annualized Billions of CLP BCH Santander BCI 4.3% 4.9% 4.3% 3.5% Non-customer Income 3.5% 3.4% Customer Income 2,995 3,050 Average 2015- 2020 2021 2022 2023 2024 2019 794
Slide 14: Diversified asset portfolio highly resilient in economic cycles
Diversified asset portfolio highly resilient in economic cycles… Loans by Segment Total Loans % of total, December 2024 Trillions of CLP Retail 65% Wholesale 35% Commercial Mortgage Consumer Rama 2 +3.4% Corporate 21% +1.7% 37.6 38.2 38.9 5.3 5.3 5.6 12.3 12.9 13.2 20.0 20.0 20.1 Individuals SMEs Mi
Slide 15: Complemented with a robust funding base
…complemented with a robust funding base Evolution of Deposits Balance Structure % of total deposits % Over total assets Current accounts and other demand deposits Saving accounts and time deposits 3.3% Trading 6.0% AFS 9.4% 4.0% 10.8% Equity 32.5% 6.8% 1.8% 37.0% HTM 52.8% 51.4% 53.6% 49.8% 2.6% 12
Slide 16: The most capitalized bank in the industry
The most capitalized bank in the industry CET1 Ratio Basel III Implementation in Chile Common Equity Tier 1 (CET1)/ Risk Weighted Assets (RWA) Applicable for Banco de Chile Banco de Chile Santander BCI 14.4% 13.6% 13.7% 13.0% 12.2% 11.5% 11.1% 10.9% 11.1% 11.1% 11.0% 10.9% 10.2% 10.0% 11.1% 11.0% 10
Slide 17: The strongest asset quality among peers
The strongest asset quality among peers Expected Credit Losses Delinquency Ratio1 Billions of CLP NPLs to Total Loans 392 361 Banco de Chile Santander BCI 3.1% 128 2.2% 103 2.2% 1.7% 1.4% 1.2% 4Q23 4Q24 2023 2024 Average 2015- 2020 2021 2022 2023 2024 Cost of Risk 1.37% 1.08% 0.98% 1.03% 2019 Provis
Slide 18: Expenses declined in real terms in 2024
Expenses declined in real terms in 2024 Total Expenses Annual Variation in Total Expenses Billions of CLP Billions of CLP 1,116 -0.1 +13 +3 1,133 1,116 1,133 319 2023 Personnel Administrative Dep, Amort & Other 2024 303 Efficiency vs Peers Operating expenses to Op. Income Banco de Chile Santander BC
Slide 19: 4Q24 Key takeaways
4Q24 Key takeaways Profitability and Capital Economic Outlook for 2025 Size of circle is Net Income in Billions of CLP, as of December 2024 We expect a 2.0% growth in 2025, with a more dynamic 3% domestic demand. Inflation and interest rates will remain above their long-term values. 2.3% BCH $1,207
Slide 20: Appendix: Consolidated Balance Sheet
Appendix: Consolidated Balance Sheet Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless otherwise s
Slide 21: Appendix: Consolidated Balance Sheet
Appendix: Consolidated Balance Sheet Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless otherwise s
Slide 22: Appendix: Consolidated Statement of Income
Appendix: Consolidated Statement of Income Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless other
Slide 23: Appendix: Consolidated Statement of Income
Appendix: Consolidated Statement of Income Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless other
Slide 24: Appendix: Selected Statistical Information
Appendix: Selected Statistical Information Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless other
Slide 25: Appendix: Selected Statistical Information
Appendix: Selected Statistical Information Chilean GAAP- In millions of Chilean pesos (MCh$) and US dollars (MUS$) These results have been prepared in accordance with Chilean GAAP on an unaudited, consolidated basis. All figures are expressed in nominal Chilean pesos (historical pesos), unless other
Slide 26: Forward Looking Information
Forward Looking Information The information contained here in incorporates by reference statements which constitute ‘‘forward-looking statements,’’ in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating