Banco de Chile · BCS:CHILE

Banco de Chile — Q3 2012 Earnings Presentation

14 slides from Banco de Chile's earnings presentation, 2012

  1. Slide 1: Third Quarter 2012 Earnings Presentation

    Third Quarter 2012 Earnings Presentation

  2. Slide 2: 3Q | 2012 Highlights

    2 3Q | 2012 Highlights  Chilean Economy  Chilean Banking System  Banco de Chile Results  Banco de Chile Profitability  Equity Raising Fundamentals

  3. Slide 3: Economic Environment

    3 Economic Environment Highlights GDP & Aggregate Demand (YoY Var. %)  Above expectation GDP growth boosted by solid performance in aggregate demand. 8,7 8,1 5,2 5,9 5,6  Low unemployment and optimistic expectations of household and enterprises 5,5 5,4 explain the dynamism in private 4,5 5,3 3,7 c

  4. Slide 4: Economic Environment

    4 Economic Environment Highlights Unemployment Rate (%)  Low unemployment rate in line with positive evolution of GDP and 7,4 6,6 6,6 enterprises sentiment. 6,6 6,5  On a yearly basis inflation remains below the Chilean Central Bank Target of 3%. 3Q11 4Q11 1Q12 2Q12 3Q12  During 3Q12 CPI grew 1.0

  5. Slide 5: Banking System

    5 Banking System Highlights Total Loan Growth (*)  After a growth spike during 2Q12, total 16,5% 17,3% 16,0% 16,1% loans posted moderate rise of 1.5% in 12,5% 3Q12. 4,8% 4,3% 3,6% 2,6%  The slowdown was focused in 1,5% commercial which after reaching a strong rise of 5.5% in 2Q12 slowed to 3Q11 4Q

  6. Slide 6: Banco de Chile: 3Q|2012 Earnings

    6 Banco de Chile: 3Q|2012 Earnings Highlights Net Income ($BN) • Highest net income YTD & +2% 121 Quarter of CLP 328 billion 98 100 107 100 and CLP 100 billion, respectively 3Q11 4Q11 1Q12 2Q12 3Q12 • Net income market share Net Income Market Share (3Q|12) YTD and Quarter of 28.9% and 32.7%, respect

  7. Slide 7: Banco de Chile: Operating Revenues

    7 Banco de Chile: Operating Revenues Highlights Total Op. Revenues ($BN) & NIM (%) 326 338 326 310 305 • Robust growth in our core business with stable spreads 4,11% 4,97% 4,74% 4,37% 3,89% • Lower inflation income as it dropped to -0.16% in 3Q12 3Q11 4Q11* 1Q11 2Q12 3Q12 from 0.42% in 2Q12 and 0.56

  8. Slide 8: Banco de Chile: Loan Portfolio

    8 Banco de Chile: Loan Portfolio Highlights Wholesale Loans (CLP $BN) +4% • Total Loan Growth of +10% Y/Y 9.066 8.540 8.857 and Flat Q/Q • Retail loans, in line with our strategic focus, continue to 3Q11 2Q12 3Q12 lead growth with very strong Retail Loans (CLP $BN) Y/Y figures: +15% • +15% Total Ret

  9. Slide 9: Banco de Chile: Credit Quality

    9 Banco de Chile: Credit Quality Highlights Loan Loss Provisions (CLP $BN) • Loan loss provisions under control 63 50 • Improving trend in mortgage and 45 24 47 4 40 consumer non-performing loans 24 14 20 4 21 25 43 30 36 • Total non-performing loans continue to post favorably to peers and system 3Q

  10. Slide 10: Banco de Chile: Operating Expenses

    10 Banco de Chile: Operating Expenses Highlights Operating Expenses (CLP $BN) 152 156 155 156 159 • Operating expenses are in line with 5 running rate 73 80 80 79 80 • Cost to assets continues to compare 74 76 75 77 79 favorably to the industry average 3Q11 4Q11 1Q12 2Q12 3Q12 Personnel Admin. & Oth

  11. Slide 11: Banco de Chile: Funding

    11 Banco de Chile: Funding Highlights Funding Structure (% of Total Funding and ∆Y/Y Change, September 2012)  Continue to diversify funding and extend Non-interest Equity durations: Bearing Deposits 9,4% ∆Y/Y: +6.9% ∆Y/Y: +8.7%  Hong Kong USD 50 mn 23,2% 13,3% Bonds ∆Y/Y: +31.6% Market  Chile UF

  12. Slide 12: Banco de Chile: Profitability

    12 Banco de Chile: Profitability Highlights Multiple BCH ROAC to Competition  Our ROAC represents 1.7 and 2011 Equity 1.2 times the average of the Increase industry and our peers, 1,9x respectively. 1,7x 1,7x 1,7x 1,6x 1,6x 1,6x 1,6x 1,6x 1,6x 1,5x  We also ranked: 1,4x 1,3x 1,2x 1,2x 1,2x 1,2x 1,

  13. Slide 13: Equity Offering Fundamentals

    13 Equity Offering Fundamentals Reasons for Capital Increase Key Facts  Capital Increase of ~Ch$250 billion Strengthen our capital base to 1 handle business growth  Issuance of 3.939.489.442 common shares  Price of the issuance will be set within 180 Maintain solid risk ratings by days of the ext

  14. Slide 14: Forward-looking Information

    Forward-looking Information 14 The information contained herein 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 operatin

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