Banco De Chile · BCS:CHILE
Banco De Chile — Q4 2023 Earnings Presentation
26 slides from Banco De Chile's earnings presentation, Feb 2, 2024
Slide 1: Earnings Presentation Full Year 2023 & 4Q23
EARNINGS PRESENTATION Full Year 2023 & 4Q23 February 2nd, 2024
Slide 2: 2023: Another Successful Year
2023: Another Successful Year 2023 Awards Leader in Most Capitalized Best Customer Best Corporate Governance Financial Results Bank1 Service La Voz del Mercado #1 in Net Income CET 1 Ratio: 13.7% #1 in NPS² EY, the Santiago Stock Exchange and #1 in Net Fees #1 in Top of Mind³ the Chilean Institute o
Slide 3: Economic & Banking Industry Overview
Economic & Banking Industry Overview
Slide 4: The beginning of a better cycle…
-5% -20% -15% 10% 15% 25% -10% 20% 0% 5% Dec-18 YoY, MA3 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Source: Central Bank of Chile, Bloomberg. Jun-20 Sep-20 Dec-20 Monthly Chile’s GDP Growth Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 0.6% The beginning of a better cyc
Slide 5: …and normalizing inflation and rates
10% 12% 16% 14% 0% 2% 6% 8% 4% 10% 12% 2% 4% 6% 8% 0% YoY, % EoP, % Dec-19 Dec-18 Mar-20 Mar-19 Jun-19 Jun-20 Overnight Rate CPI Sep-19 Sep-20 Dec-19 Dec-20 Mar-20 Headline and Core CPI Source: Central Bank of Chile and Bloomberg. Mar-21 Jun-20 CPI core Jun-21 Sep-20 Dec-20 Sep-21 Mar-21 Dec-21 Jun-
Slide 6: Chile: Baseline Scenario
Chile: Baseline Scenario Banco de Chile’s Forecast YoY, % 2020 2021 2022 2023f 2024f GDP -6.4 11.9 2.4 0.0 1.5 Inflation and Overnight Rate Quarterly Forecast EOP, % Consumption -6.6 19.3 3.1 -3.8 1.6 11.3% CPI Overnight rate Investment -10.8 15.7 2.8 -2.2 -0.4 9.3% Exports -0.9 -1.4 1.4 1.2 3.8 7.6
Slide 7: Banking Industry: Normalizing results
Banking Industry: Normalizing results Quarterly Net Income Nominal Total Loan Growth1 Billions of CLP YoY 14.2% Net Income ROAE 13.3% 1,688 10.1% 9.9% 10.1% 9.5% 1,321 1,340 1,325 1,243 1,148 26.7% 1,050 949 4.5% 4.0% 21.0% 20.6% 2.8% 3.2% 16.5% 18.4% 15.9% 14.8% 12.7% -0.4% -0.6% 1Q21 2Q21 3Q21 4Q2
Slide 8: Strategic Priorities and Advances
Strategic Priorities and Advances
Slide 9: Our key strategic guidelines
Our key strategic guidelines STRATEGIC PILLARS CORE PRIORITIES MID-TERM TARGETS CUSTOMER CENTRICITY Net Promoter Score Target: >70% Customers first and at the centre of Accelerate Boost Dec-23: 75.9% everything we do. digital business solutions activity Market Share in Total Loans1 Target: Top 2
Slide 10: Strategic initiatives highlights
Strategic initiatives highlights DIGITAL BANKING EFFICIENCY AND ESG “Best Bank for our Customers” PRODUCTIVITY “Committed to Chile” • Digital onboarding current account in “Fast, Timely, Secure and Digital” • Issuance of Social bonds under the ESG USD for individuals and companies Framework to finan
Slide 11: Full Year 2023 & 4Q23 Financial Results
Full Year 2023 & 4Q23 Financial Results
Slide 12: Consistent market leader in financial results
Consistent market leader in financial results Quarterly Net Income¹ Net Income ROAE2 Billions of CLP Billions of CLP, 2022 vs 2023 Return on Average Equity Net Income 2022 Net Income 2023 1,409 1,244 BCH Santander BCI 386 347 821 824 332 683 712 633 25.1% 266 260 511 19.1% 434 18.7% 355 13.2% 13.6%
Slide 13: Robust operating revenues despite lower inflation
Robust operating revenues despite lower inflation NIM Quarterly Operating Revenues Net Interest Income/Avg. Interest Earnings Assets, Annualized Billions of CLP BCH Santander BCI Non-customer Income 3,116 -4% 4.3% 4.7% 2.997 Customer Income 4.3% 3.5% 3.3% 2.8% 864 +7% 820 1,161 -29% 806 2018 2019 20
Slide 14: Highly diversified loan portfolio
Highly diversified loan portfolio Nominal Loan Growth by Product Total Loans YoY Trillions of CLP Commercial Mortgage Consumer Total Loans Commercial Mortgage Consumer 36.7 36.8 37.6 YoY% YoY% BCH Industry* 5.0 5.1 5.3 11.8% 10.7% 11.4 12.3 12.0 10.2% +6.4% 7.8% 7.4% 6.3% +1.3% 2.5% +2.4% 20.3 19.6
Slide 15: Solid balance sheet structure
Solid balance sheet structure Structure Evolution of Deposits % Over total assets, as of December 2023 % of total deposits Current accounts and other demand deposits Saving accounts and time deposits 6.0% Trading 9.6% Financial Institutions 6.8% AFS 2.6% HTM 32.5% 37.0% 52.8% 51.4% 53.6% 51.4% Total
Slide 16: Strongest capital base…
Strongest capital base… Basel III Ratio Basel III Implementation in Chile December 2023 Applicable for Banco de Chile CET 1 AT1 + TIER 2 17.5% 15.6% 3.7% 4.3% 13.7% 11.4% BCH Industry* *as of September 2023. CET1 Ratio Common Equity Tier 1 (CET1)/ Risk Weighted Assets (RWA) Banco de Chile Santander
Slide 17: …and soundest asset quality
…and soundest asset quality Expected Credit Losses Provisions and Coverage Billions of CLP Billions of CLP, as of December 2023 Add Prov 435 Add Prov Loan Loss Provision Allowances for Loans Losses 361 Coverage (Allowances for loan losses + Add Prov to NPLs) 128 160 - 123 - 1,469 1,447 1,400 293 1,2
Slide 18: Normalizing inflation should provide a turning point in expenses growth
Normalizing inflation should provide a turning point in expenses growth Total Expenses Quarterly Variation in Total Expenses Billions of CLP Billions of CLP 1,119 54 15 995 54 1,119 995 871 Efficiency vs Peers Operating expenses to Op. Income Banco de Chile Santander BCI 59.6% 44.7% 43.1% 37.8% 37.0
Slide 19: Key takeaways
Key takeaways • We expect the Chilean economy to grow by 1.5% in 2024, after posting zero growth in 2023. CPI and interest rates will continue normalizing this year. • Banco de Chile’s completed another successful year, positioning us once again as the industry leader in profitability, operating rev
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