Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q2 2022 Earnings Presentation
31 slides from Banco De Credito E Inversiones's earnings presentation, August 2022
Slide 1: Corporate Presentation 2Q 2022
Corporate Presentation 2Q 2022 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl August 2022
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 June 2022 • Largest bank in Chile (total loans) • 3rd Largest Florida-based bank US$83,172 bn US$49,813 bn (+33.9% YoY*) (+26.5% YoY*) Total ass
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. GDP and Monthly Activity Index (%, yoy) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 932.08 (July 1st 2022) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operations
Slide 6: Bci Consolidated
Bci Investor Relations 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 Board of Directors is composed by experts in various fields, academics, Private pension economists, bankers and individuals connected with the worl
Slide 8: Sustainability is in our DNA
Sustainability is in our DNA: financial inclusion, environment, transparency, responsability, empathy, employees and investors: ESG funding strategy: Placed more than USD 300 million Nasdaq Sustainable Bond Network:First Chilean company to join the Sustainable Chile: SMEs measure and manage their so
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark Chilean banking system benchmark In US$mm, as of June 2022 In US$mm, as of June 2022 Other Other banks banks (12) (12) 14.8% 17.4% 14.0% 16.4% 14.4% 9.8% 13.4% 15.4% 19.5% 15.1% 14.9% 12.7% 9.1% 13.1% Loan breakdown1 As
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). 10 Note: Figures are converted to US$ using an FX of USD/CLP of 932.08 (July 1st 2022) ; Include Cor
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of June 2021 Chile 28.59% 28.49% 26.53% 17.79% 15.79% 12.19% +150 bps of market share Return on average assets (ROAA)1 as of June 2021 2.36% 1.50% 1.19% 1.20% 1.03% 0.98% Source: CMF as of June 2022
Slide 12: …with diversified and low funding cost
…with diversified and low funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type1 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 Fra
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. Since 2020 we have built over US$ 325 Million in additional provisions. Our loan portfolio is well diversified by business lines, econom
Slide 14: Greater liquidity has mitigated a further increase in NPLs
Greater liquidity has mitigated a further increase in NPLs NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services 14 Note: Includes Bci subsidiary in USA (CNB) *Not includes the Interbank loans
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively Figures are converted to US$ using an FX of 932.08 (July 1st 2022) 15
Slide 16: Operating Expenses have been controlled
Operating Expenses have been controlled Operating Expenses (YTD) Expense Breakdown US$ million as of June 2022 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Since 1Q18, additional allowances are not inclu
Slide 17: Aiming to become Chile's leading digital Bank
Aiming to become Chile’s leading digital Bank Bigger and more engaged Continuous growth despite a challenging Customer Base macro and competitive scenario 3.4 3.1 9% 10% million QoQ QoQ millions Growth of Growth of Registered users Net cards issued Local Digital Card Active Physical Cards transactio
Slide 18: Balance sheet
Balance sheet CAGR US$ million (*) 2018 2019 2020 2021 2Q 2021* 2Q 2022* %D 2018-2021 Cash 2,209 3,384 4,933 4,249 24.37% 4,498 3,918 14.79% Securities 5,655 6,685 9,834 15,423 39.72% 22,010 16,207 35.81% Loans 32,053 36,124 37,631 43,848 11.01% 49,813 39,387 26.47% Other Financial Instruments 64 12
Slide 19: Financial results
Financial results CAGR US$ million (*) 2018 2019 2020 2021 2Q 2021* 2Q 2022* %D 2017-2021 Net Interest Income 1,159 1,418 1,565 1,714 13.93% 435.0 709.7 63.14% Net Service Fee Income 329 377 360 372 4.21% 88.2 96.8 9.65% Other Operating Income 213 234 256 233 3.00% 10.1 -60.9 -701.5% Operating Incom
Slide 20: City National Bank of Florida
City National Bank of Florida
Slide 21: Executive Summary
Executive Summary • Loans (excluding PPP) have increased $1B QoQ or 29% (annualized) as a result of new loan Balance production that significantly exceeds 2021 levels Sheet • Both our loan and deposit growth rates are significantly higher than the industry Evolution • Excess cash deployed via signif
Slide 22: We increased our total assets by $2.9B or 15% YoY through purely organic means
We increased our total assets by $2.9B or 15% YoY through purely organic means and surpassed $23B in assets Total Assets ($MM) Cash & Investments ($MM) QoQ increase: +$1.1B +4.8% QoQ increase: +$332MM +4.9% YoY increase: +$2.9B +14.5% YoY increase: +$414MM +6.1% $23,178 $7,161 $22,124 $6,829 $20,235
Slide 23: Our deposit growth is higher than the industry
Our deposit growth is higher than the industry, as deposit capture becomes increasingly challenging among banks Client Deposits ($MM) Deposit Growth Rates (annualized) QoQ increase: +$177MM +1% Higher deposit growth than the industry QoQ (~21x), YoY increase: +$2.3B +13.7% YTD (~5x), and YoY (~3x) $
Slide 24: Our loans (excluding PPP) have increased $1B QoQ or 7.2%
Our loans (excluding PPP) have increased $1B QoQ or 7.2% as a result of loan production, which significantly exceeds 2021 levels Total Loans & Leases ($MM) Loans and Leases Growth Rates (annualized) Higher loan & lease growth than the industry QoQ, YTD and YOY (in all QoQ increase (non-PPP growth):
Slide 25: Asset quality is strong and deferments declined further in June
Asset quality is strong and deferments declined further in June, with non-accruals also decreasing Loan Deferments ($MM) Non-Performing Loans ($000’s) $103,115 Reduced deferments from ~$3bn to $3MM as of June 30th $2,560 $59,691 $1,955 $28,459 $676 $290 $119 $84 $37 $21 $12 $3 Mar-20 Jun-20 Sep-20 D
Slide 26: Net income is 22% higher than prior year
Net income is 22% higher than prior year principally driven by net interest income growth Q2 Q1 Q2 $ Var % Var YTD YTD $ Var % Var 2022 INCOME STATEMENT ($ millions) $ Var % 2021 2022 2022 QoQ QoQ 2021 2022 YoY YoY Budget (+) Net Interest Income $130.9 $143.2 $160.8 $17.6 12.3% $256.9 $304.0 $47.1 1
Slide 27: Net interest income, excluding PPP & MSLP, increased by $18MM or 13% QoQ
Net interest income, excluding PPP & MSLP, increased by $18MM or 13% QoQ Net interest income ($k) Net interest margin (%) $160,790 $143,196 $6,974 $130,950 $7,043 3.06% $50 2.80% 2.81% $13,016 0.10% 0.13% 0.09% $153,816 $136,153 $117,884 2.96% 2.67% 2.72% 2Q'21 1Q'22 2Q'22 2Q'21 1Q'22 2Q'22 Net Inte
Slide 28: CNB has maintained its cost of funds virtually unchanged
Although the Fed funds rate has significantly increased QoQ, CNB has maintained its cost of funds virtually unchanged 0.80 0.76 0.75 CNB Cost of Funds 0.70 Average Fed Funds 0.65 0.60 0.55 -0.49 0.50 (-64%) 0.45 0.40 0.35 0.30 0.27 0.25 0.21 0.20 0.15 0.12 0.10 0.05 0.00 1Q’22 2Q’22 28
Slide 29: Non-interest income has increased by 27% YoY
Non-interest income has increased by 27% YoY +$10.0 (+27%) $47.6 • Total service charges on deposit accounts increased Swap Fees $3.3 $1.8MM YoY (12.9%), due to increased treasury Other Income management fees and wire transfer fees and $7.2 $37.6 commissions as deposits have significantly grown Othe
Slide 30: Well positioned for rising rates with nearly 40% of loan portfolio repricing
We are well positioned for rising rates with nearly 40% of our loan portfolio (excluding PPP) repricing over the next year >$4.9B or 34% of loans reprice within next three months Fixed rate loans offer income stability to help NIM Floating rate loans mostly tied to 1m LIBOR (new origination indexed
Slide 31: 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) — Q2 2022 Earnings Presentation on 6ix