Banco De Chile · BCS:CHILE
Banco De Chile — Q3 2024 Earnings Presentation
25 slides from Banco De Chile's earnings presentation, Nov 8, 2024
Slide 1: Earnings Presentation 3Q24
Earnings Presentation 3Q24 November 8th, 2024
Slide 2: Economic & Banking Industry Overview
Economic & Banking Industry Overview 1
Slide 3: The economy continues to normalize
The economy continues to normalize… Trade Balance Chile’s GDP Growth USD Bn, LTM YoY, % 20.1 17.8 6.3% 15.3 15.3 15.5 12.4 9.1 7.2 4.4% 3.7 2.5 1.2 Mar-22 Sep-22 Mar-23 Sep-23 Dec-23 Mar-24 Sep-24 Dec-22 Jun-22 Jun-23 Jun-24 2.5% 2.2% Labor Market % 1.6% 0.5% 0.6% 0.3% Unemployment RealWage Real Wag
Slide 4: …but with higher levels of inflation
10% 12% 14% 16% 0% 2% 4% 6% 8% YoY, % Sep-19 Dec-19 Mar-20 CPI Jun-20 Sep-20 Dec-20 Source: Central Bank of Chile and Bloomberg. Mar-21 Jun-21 Headline and Ex Volatile CPI Sep-21 CPI ex volatile Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 …but with higher leve
Slide 5: Chile: Baseline Scenario
Chile: Baseline Scenario Banco de Chile’s Forecast Market Expectations for 2024 YoY, % Central Bank Survey 2020 2021 2022 2023 2024f Overnight Rate CPI GDP -6.1 11.3 2.1 0.2 2.3 (EOP) (EOP) Consumption -6.6 19.5 2.6 -3.9 1.8 5.00% 4.75% Investment -10.8 16.0 3.9 -1.1 -0.8 4.50% 4.5% Exports -0.9 -1.
Slide 6: Banking Industry: Profitability remains strong in a slow loan growth environment
Banking Industry: Profitability remains strong in a slow loan growth business environment Quarterly Net Income Nominal Loan Growth Breakdown1 Billions of CLP YoY Net Income ROAE Commercial Mortgage Consumer Total Loans 1,340 1,325 1,346 1,308 1,243 15.7% 1,148 1,172 15.4% 1,050 13.3% 949 11.6% 6.7%
Slide 7: Strategic Priorities and Advances
Strategic Priorities and Advances 2
Slide 8: Key pillars of our strategy
Key pillars of our strategy STRATEGIC PILLARS CORE PRIORITIES MID-TERM TARGETS • Return on Average Capital CUSTOMER CENTRICITY and Reserves1 Target: Top 1 Customers first and at the centre of Accelerate Boost Sep-24: Top 1 everything we do. digital business solutions activity • Cost to Income Ratio
Slide 9: Strategic initiatives highlights
Strategic initiatives highlights DIGITAL BANKING EFFICIENCY AND ESG “Best Bank for our Customers” PRODUCTIVITY “Committed to Chile” • New functionalities in our main app, Mi “Fast, Timely, Secure and Digital” • Launching diverse volunteer activities Banco, such as notifications about benefits, • Con
Slide 10: 3Q24 Financial Results
3Q24 Financial Results 3
Slide 11: Banco de Chile: Superior profitability and net income
Banco de Chile: Superior profitability and net income Quarterly Net Income¹ Net Income ROAE2 Billions of CLP As of September 2024 Return on Average Equity BCH Santander BCI 909 +11% 386 631 591 324 22.8% 298 288 19.1% 260 18.7% 18.1% 13.6% 13.0% 3Q23 4Q23 1Q24 2Q24 3Q24 BCH BCI Santander 2018 2019 2
Slide 12: The most consistent and strongest margins in the Chilean banking industry
The most consistent and strongest margins in the Chilean banking industry NIM Quarterly Operating Revenues Net Interest Income/Avg. Interest Earnings Assets, Annualized Billions of CLP BCH Santander BCI Non-customer Income Customer Income 4.3% 4.6% 4.3% 3.8% 3.5% 3.2% +6% Average 2020 2021 2022 2023
Slide 13: Universal bank with a well diversified loan portfolio
Universal bank with a well diversified loan portfolio Loans by Segment Total Loans % of total, September 2024 Trillions of CLP Retail 65% Wholesale 35% Commercial Mortgage Consumer Corporate +3.9% 21% +1.6% 36.8 37.6 38.2 5.1 5.3 5.3 12.0 12.3 12.9 19.6 20.0 20.0 u SMEs e r et 13% 3Q23 4Q23 3Q24 Nom
Slide 14: Normalizing balance sheet structure
Normalizing balance sheet structure Structure Evolution of Deposits % Over total assets % of total deposits Current accounts and other demand deposits Saving accounts and time deposits 2.8% Trading 6.5% 3.8% AFS 9.1% 10.2% Equity 1.8% 6.4% HTM 32.5% 1.7% 37.0% 13.3% 52.8% 51.4% 53.6% 52.5% 17.3% Oth
Slide 15: Well prepared to face business growth and final steps of Basel III implementation
Well prepared to face business growth and final steps of Basel III implementation CET1 Ratio Basel III Implementation in Chile Common Equity Tier 1 (CET1)/ Risk Weighted Assets (RWA) Applicable for Banco de Chile Banco de Chile Santander BCI 14.3% 13.6% 13.7% 13.0% 12.2% 11.5% 11.5% 11.1% 10.9% 11.1
Slide 16: Positive risk management performance
Positive risk management performance Expected Credit Losses Delinquency Ratio1 Billions of CLP NPLs to Total Loans 128 113 Banco de Chile Santander BCI 95 3.1% 80 60 2.2% 2.4% 1.7% 1.5% 1.2% 3Q23 4Q23 1Q24 2Q24 3Q24 Average 2020 2021 2022 2023 1Q24 2Q24 3Q24 Cost of Risk 0.66% 1.37% 1.20% 1.00% 0.84
Slide 17: Effective cost control measures bearing fruit
Effective cost control measures bearing fruit Total Expenses Quarterly Variation in Total Expenses Billions of CLP Billions of CLP 3 0.1 1 273 269 +1.3% 319 284 269 273 273 er o e tr e ep ort t er Efficiency vs Peers Operating expenses to Op. Income Banco de Chile Santander BCI 50.9% 48.9% 44.8% 42.
Slide 18: 3Q24 Key takeaways
3Q24 Key takeaways Profitability and Capital Size of circle is Net Income in Billion of CLP, as of September 2024 • GDP and overnight rate expectations have 29% decreased for 2024 to 2.3% and 5.0%, respectively. 27% Inflation forecast have increased at 4.5% for this 25% 22.8% BCH year, due to an inc
Slide 19: 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 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 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 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: 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 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: Forward Looking Information
Forward Looking Information The information contained here in incorporates by reference statements which constitute ‘‘forw r -looking t te e t ’’ in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating pe