Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q1 2024 Earnings Presentation
28 slides from Banco De Credito E Inversiones's earnings presentation, May 2024
Slide 1: Corporate Presentation 1Q 2024
Corporate Presentation 1Q 2024 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl May 2024
Slide 2: Bci at a glance
Bci at a glance
Slide 3: Leading financial institution in Chile by Assets and Loans
Leading financial institution in Chile by Assets and Loans Profitable and financially sound Diversified business model Bci/Subsidiary Diversification as of march 2024 • Largest bank in Chile (total loans) US$ 87.97bn US$ 54.36bn • 3rd Largest Florida-based bank (+11.1% YoY) (+15.1% YoY) Total assets
Slide 4: Chilean financial system
Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Banking system capitalization ratio (Basel III) Total loans in the banking system (US$bn) 2 Chilean banking regulation – upgrading to Basel III March 2023: CMF reports on rating of systemically important banks
Slide 6: Bci Consolidated
Bci Consolidated
Slide 7: A successful strategy supported by its strong corporate governance
A successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Private pension Board of Directors is composed by experts in various fields, academics, funds economists, bankers and individuals connected with th
Slide 8: MACH | On the path to monetization
MACH | On the path to monetization Proposal for customers Platforms Financial Prod. MACH account Increase in Insurance Auto Policy Affiliate Marketing Program with In March the number of policies benefits financed by businesses sold grew by 66%. Product New +500K new Checking +200 affiliated busines
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark In US$mm, as of March 2024 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 15.0% 17.3% 15.0% 16.1% 13.7% 9.7% 13.1% 15.5% 19.2% 15.2% 14.6% 12.2% 9.8% 13.4% Commercial Consumer Mortgage Deposits1 Net income Co
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) CAGR CAGR Source: Financial Market Commission (CMF). Note: Figures are converted to US$ using an FX of USD/CLP of 981.71 (April 1st 2024); Including the
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Local loans market share (%) 2 Return on average Equity (ROAE) 1 as of March 2024 Chile 25.38% 18.10% 12.89% 13.25% 11.44% 10.46% +106 bps of market share Return on average assets (ROAA)1 as of March 2024 2.30% 1.02% 1.00% 0.90% 0.89% 0.70% Source: CMF as of March
Slide 12: …with diversified and funding cost
…with diversified and funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type 1 Long term funding composed primarily of UF local bonds in the Chilean market, complemented by other international issuances, through our EMTN program in US dollars, Euros, Swiss Francs
Slide 13: Risk Evolution
Risk Evolution Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. We have a stock of over US$ 480 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sectors, and custome
Slide 14: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services Note: Includes Bci subsidiary in USA (CNB) and Bci Peru. *Does not include Interbank loans
Slide 15: Financial Services: NPL's
Financial Services: NPL's Figures are converted to US$ using an FX of USD/CLP of 981.71 (April 1st 2024)
Slide 16: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of March 2024 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Note: Figures are converted to USD using an FX of USD/CLP of 981.71
Slide 17: Balance sheet
Balance sheet CAGR US$ million (*) 2020 2021* 2022* 2023* 1Q 2023* 1Q 2024* %D 2019-2023 Cash 4,684 4,628 4,336 3,687 -7.66% 4,625 4,468 -3.39% Securities 9,337 21,580 20,318 18,416 25.41% 20,119 19,832 -1.43% Loans 35,729 49,073 47,892 51,081 12.65% 47,208 54,356 15.14% Other Financial Instruments
Slide 18: Financial results
Financial results CAGR US$ million (*) 2020 2021* 2022* 2023* 1Q 2023* 1Q 2024* %D 2020-2023 Net Interest Income 1,486 1,627 2,353 2,059 11.49% 485.7 594.2 22.33% Net Service Fee Income 342 353 374 347 0.52% 83.0 91.2 9.85% Other Operating Income 243 221 23 161 -12.75% 57.0 33.7 -40.9% Operating Inc
Slide 19: City National Bank of Florida
City National Bank of Florida.
Slide 20: We have expanded our NIM, strengthened our liquidity position, increased our capital ratios
We have expanded our NIM, strengthened our liquidity position, increased our capital ratios and our CRE portfolio is well managed Client Deposits Liquidity NIM Capital Investments CRE Our client We maintained Net interest Our CET 1 ratio 99% of our Our commercial deposits ~$10B of income significant
Slide 21: Client deposits grew significantly more than banking industry deposits in Q1
While deposits in the banking industry slightly increased in Q1 (includes brokered deposits), our client deposits grew significantly more ($1.1B or 7%) Total Deposits ($MM) Banking Industry - Total Deposits ($B) Client Deposits QoQ change: +$1.2B +7% +$217 +$20 (+1%) (0%) $17,646 $17,429 $21,041 $21
Slide 22: Loans remained flat QoQ while maintaining our strong asset quality
Loans remained flat QoQ while maintaining our strong asset quality (NPLs <0.75%) Total Assets ($MM) Total Loans & Leases ($MM) Core loans QoQ change: ($83MM) -0.5% Non-owner ($25) occupied CRE (0%) represents $26,128 $26,102 48% of total $17,423 $17,322 portfolio $29 $11 PPP Loans Core loans ($83) (
Slide 23: CRE loans are well diversified across various property types with low LTVs
CRE loans are well diversified across various property types with low LTVs (50%), strong DSCR (1.8x) and excellent asset quality and ACL ratios CRE by Property Type % % Full & Commitment % Balance % WAvg WAvg % Accr Non- % In Partial Reserve Property Type ($M) Total ($M) Total % of RBC LTV % DSCR %
Slide 24: Miami-Dade ranks #2 in the nation in new business applications
Miami-Dade ranks #2 in the nation in new business applications; South Florida office market remains strongest in the U.S. Miami-Dade, Broward & Palm Beach The South FL office market counties rank in the Top 15 nationwide of remains the strongest in the new business applications country with higher r
Slide 25: Pre taxes and provisions, normalized net income in Q1'24 was $6.4MM higher
Pre taxes and provisions, normalized net income in Q1’24 was $6.4MM or 12% higher than prior quarter Mainly driven by net interest income, which was $4.1MM (4%) higher QoQ Normalized net income before taxes and provisions as NIM expanded by 6bps ($MM) $3.5 $6.4 (+6.3%) (+12.2%) $58.3 $54.8 $4.0 $51.
Slide 26: Normalized net income in Q1-2024 was 22% higher than Q4-2023
Normalized net income in Q1-2024 was 22% higher than Q4- 2023 mainly due to higher net interest income Less: Non- Normalized Less: Non- Normalized Normalized Normalized Q1'24 Recurring Net Income Q4'23 Recurring Net Income Variance Variance ($MMs) Items Q1'24 Items Q4'23 ($) (%) Net interest income
Slide 27: Net interest income increased in Q1-2024 by $4MM with NIM expanding 6bps
After stabilizing in the prior quarter, net interest income increased in Q1-2024 by $4MM (4%), with the NIM expanding 6bps Net interest income ($MM) Net Interest Margin (%) NIM expanded 6bps in Q1-24 after compressing in previous quarters due to the cost of funds flattening out and more stabilizatio
Slide 28: Forward-looking statements
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) — Q1 2024 Earnings Presentation on 6ix