Banco de Chile · BCS:CHILE
Banco de Chile — Q2 2014 Earnings Presentation
13 slides from Banco de Chile's earnings presentation, Jun 30, 2014
Slide 1: Financial Results Q2|14
Financial Results June 30th, 2014 Q2|14
Slide 2: Agenda: 2Q14
AGENDA: 2Q14 Banco de Chile 1. Economic at the top of the industry Environment 2. Banking Industry 3. Banco de Chile Financial Results 4. Final Remarks 2
Slide 3: 2Q14 Economic Highlights
2Q14 Economic Highlights 20% GDP & Domestic Demand GDP Breakdown (%) 30% (Year on Year, %) 15% 20% 10% 10% 5% 0% 0% -10% -5% GDP -10% -20% Domestic Demand Consumption Gross Fixed Investment -15% -30% 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 Labor Market Retail
Slide 4: 2Q14 Economic Highlights
2Q14 Economic Highlights Overnight and Swaps Rates Exchange Rate and Copper Prices 6,0 (%) 600 (CLP) 410 5,5 580 390 5,0 560 370 4,5 540 350 4,0 520 330 3,5 500 310 3,0 Overnight rate swap 6M swap 1Y 480 290 2,5 CLP/USD 460 Copper price (right, inverted) 270 2,0 440 250 Jul-13 Oct-13 Jan-14 Apr-14 J
Slide 5: 2Q14 Banking Industry Highlights
2Q14 Banking Industry Highlights Total Loan Growth (1) (2) Net Income & ROAE (% in real terms) (In Billions of US$ and %) (1) Figures exclude foreign subsidiaries (2) Figures exclude estimated non-recurrent effect of the consolidation of a retail company credit card portfolio as part of the banking
Slide 6: Quarterly Financial Results
Banco de Chile Quarterly Financial Results (In billions of CLP, 2Q|13 3Q|13 4Q|13 1Q|14 2Q|14 %∆ Q except percentages) 13 |14 Operating Revenues 344.5 379.6 393.1 408.0 412.0 19,6% Provision Expenses (53.9) (70.1) (67.8) (76.4) (72.4) 34,2% Operating Expenses (150.5) (154.0) (169.2) (160.0) (170.2)
Slide 7: Operating Income
Operating Income Highlights Quarterly Operating Income (In billions of CLP) Record operating income of CLP412 billion, 20% above the same period last year. 393 408 412 380 345 123 91 98 122 The strong Y/Y rise in operating 58 income is due to: 71 68 67 72 66 • Positive effect of inflation on 3 3
Slide 8: Loans
Loans Loans by Product Retail Strategy based on Customer (In trillions of CLP) Business Intelligence and Productivity +7% -0.2% improvements 20.9 ∆YoY 21.0 20.8 19.5 7% yearly nominal growth: 3,9 3,9 4,0 • 15.4% in residential mortgage loans 4,0 • 8.9% in consumer loans +3% • 3.9% in commercial lo
Slide 9: Solid Funding Structure
Solid Funding Structure Liability Structure Time Deposits Cost of Funding (% Over Total Assets, as of June 2014) (Interest paid by currency / average volume by currency1, annualized) Other Saving Accounts and Time 7,2% Financial Institutions (∆-172 bp y/y) Deposits 2,9% 37,4% CLP UF Fx (∆-189 bp y/y
Slide 10: Loan Loss Provisions
Loan Loss Provisions Quarterly Loan Loss Provisions Loan Loss Provisions (In billions of CLP) (In millions of CLP) 10 -5 72 +34% 7 76 72 6 70 68 54 7 4 10 54 3 3 6 53 45 61 53 49 10 17 11 9 -1 2Q13 3Q13 4Q13 1Q14 2Q14 FX Countercyclical Provisions Retail Wholesale Risk Indicator 2Q13 3Q13 4Q13 1Q14
Slide 11: Operating Expenses
Operating Expenses Operating Expenses Efficiency Ratio (In billions of CLP) (Operating Revenues/Operating Expenses, %) +13% 169 169 154 160 47,9% 151 47,3% 47,0% 80 82 43,8% 43,7%* 73 76 78 43,7% 43,0% 40,6% 41,3% 39,2% 78 78 89 82 87 2Q13 3Q13 4Q13 1Q14 2Q14 2Q13 3Q13 4Q13 1Q14 2Q14 Personnel Admin
Slide 12: Summary of Quarterly Results
Banco de Chile Summary of Quarterly Results Highlights Quarterly Net Income (In billions of CLP) For second quarter in a row, BCH surpasses the CLP150 billion barrier in 151 153 net income, while posting a ROAE of 140 137 133 26% 121 121 122 107 100 Selective loan growth and forward- Avg. 128 lo
Slide 13: Forward-looking Information
Forward-looking Information 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 operating p