Banco de Chile · BCS:CHILE
Banco de Chile — Q1 2014 Earnings Presentation
12 slides from Banco de Chile's earnings presentation, Mar 31, 2014
Slide 1: Financial Results March 31, 2014
Financial Results March 31, 2014 Q1|14
Slide 2: Agenda: 1Q14
AGENDA: 1Q14 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: 1Q14 Economic Highlights
1Q14 Economic Highlights Gross Domestic Product Consumption & Investment Real Annual Growth, % Real Annual Growth, % 10,2 4,9 5,0 8,2 6,4 5,4 5,7 4,9 4,0 3,8 2,7 2,4 1Q13 2Q13 3Q13 4Q13 1Q14e -1,5 Consumption -8,0 1Q13 2Q13 3Q13 4Q13 1Q14e -12,3 Investment Inflation & Monetary Policy Rate Unemployme
Slide 4: 1Q14 Banking Industry Highlights
1Q14 Banking Industry Highlights Total Loan Growth (1) (2) Loan Growth by Product (1) (2) (% in real terms) ($Bn. & %) Nominal Real 9,6% 9,0% +11% +7% 110.914 8,4% 100.369 7,6% 7,1% +7% 14.559 13.133 +11% 24.970 +13% +9% 28.170 3,3% 1,4% 1,7% +6% 1,1% 0,9% 62.267 +10% 68.185 1Q13 2Q13 3Q13 4Q13 1Q14
Slide 5: Quarterly Financial Results
Banco de Chile Quarterly Financial Results (In billions of CLP, except percentages) 1Q|13 2Q|13 3Q|13 4Q|13 1Q|14 %∆ Q 13 |14 Operating Income 338.8 344.5 379.6 393.1 408.0 20.4% Provision Expenses (49.8) (53.9) (70.1) (67.8) (76.4) 53.2% Operating Expenses (149.2) (150.5) (154.0) (169.2) (160.0) 7.
Slide 6: Strong growth non-customer revenue from high ∆UF
Operating Income Strong growth non-customer revenue from high ∆UF Highlights Quarterly Operating Income (In billions of CLP) Record operating income of CLP408 billion, 20% above the same period last year. 393 408 380 339 345 The strong Y/Y rise in operating 91 98 122 60 58 income is due to: 71 7
Slide 7: Firm focus in profitable growth…
Loans Firm focus in profitable growth… Loans by Product Retail Strategy based on Customer (In trillions of CLP) Business Intelligence and Productivity +9% +0.5% improvements 20.9 21.0 ∆YoY 19.2 3,9 3,9 4,2 Main improvements: +2% 6,4 6,2 Pricing by sales channel 5,3 2,7 2,8 2,5 Propensity model 4
Slide 8: Leader in low cost funding…
Solid Funding Structure Leader in low cost funding… Liability Structure Time Deposits Cost of Funding % Over Total Assets, as of March 2013 Interest paid by currency / average volume by currency1, annualized Other Saving Financial 7,4% Accounts and CLP UF Fx Institutions (∆5 bp y/y) Time Deposits 2,
Slide 9: LLP increase was largely due to factors other than deterioration…
Loan Loss Provisions LLP increase was largely due to factors other than deterioration… Highlights Quarterly Loan Loss Provisions (In billions of CLP) Loan loss provisions grew to CLP 76 +53% billion in 1Q14, CLP 16 billion higher 76 70 68 than 1Q13 due to: 7 3 5 50 54 • Strong loan growth in our r
Slide 10: Record efficiency of 39.2% for the quarter…
Operating Expenses Record efficiency of 39.2% for the quarter… Operating Expenses Efficiency Indicators (In billions of CLP) (%) +7% 44,0% 43,7% 2,7% 169 160 151 154 2 149 8 2,5% 4 5 2,6% 5 78 2,6% 43,0% 67 69 70 70 40,6% 39,2% 2,3% 78 78 78 89 82 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 Op
Slide 11: Summary of Quarterly Results
Banco de Chile Summary of Quarterly Results Highlights Quarterly Net Income (In billions of CLP) Record quarter of Ch$ 151 billion pesos, 24% higher than the 1Q of 151 2013 and almost 20% higher than the 140 137 133 average quarterly results posted in 121 121 122 2013 107 100 Avg. 128 In summary
Slide 12: 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