32 slides from Banco De Credito E Inversiones's earnings presentation, November 2024
Slide 1: 3Q 2024 Corporate Presentation
3Q 2024 Corporate Presentation Investor Relations Department | Investor_Relations_Bci@Bci.cl November 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 September 2024 • Largest bank in Chile (total loans) • 3rd Largest Florida-based bank US$ 78.81bn US$ 57.87bn (-2.6% YoY) (+4.4% YoY) Total Asse
Slide 4: Key Highlights of the 3rd Quarter
Key Highlights of the 3rd Quarter ● Total loans grew 4,38% YoY, mainly driven by mortgages and commercial loans. ● Local Deposits showed a positive transition from time deposits to demand deposits in local operations, the latter with an increase of 5.2%. This Balance Sheet shift positively impacted
Slide 5: Chilean financial system
Chilean financial system
Slide 6: 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 CET 1 capital has seen an increase of 188 basis points compared t
Slide 7: Bci Consolidated
Bci Consolidated
Slide 8: 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, economists, funds bankers and individuals connected with th
Slide 9: MACH | We continue our path to monetization
MACH | We continue our path to monetization thanks to customer engagement and good performance in key indicators Launch of our Credit Card according to plan. F&F started in October, while a progressive opening is expected by the end of the year to reach 1,000 end users $7 USD 73 CAC NPS Customer Acq
Slide 10: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market % Market share in Chilean banking system Chilean banking system benchmark In US$mm, as of September 2024 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 14.9% 17.1% 15.2% 16.2% 13.6% 9.7% 13.4% 15.4% 18.6% 15.7% 14.6% 12.2% 9.8% 13.4% Commerc
Slide 11: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR 4.4% 4.0% 11.8% 57,865 12.1% 38,244 55,863 55,863 36,937 36,765 52,375 34,074 23,802 39,544 23,394 22,921 46,367 38,555 37,803 30,556 36,638 21,680 39,954 33,403 26,213 20,015 29,918 17,928 13,543 13,844 14,442
Slide 12: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE) 1 Local loans market share (%) 2 as of September 2024 Chile 24.64% 17.58% 15.90% 12.90% 12.84% 9.50% +91 bps of market share Return on average assets (ROAA)1 as of September 2024 2.36% 1.09% 1.03% 1.00% 0.96% 0.83% Source: CMF as of
Slide 13: …with diversified and funding cost
…with diversified and funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type 1 Equity Long term funding composed primarily of UF local bonds in the Chilean market, 8.4% Other complemented by other international issuances, through our EMTN program in Liabilities 2
Slide 14: Risk Evolution
Risk Evolution Highlights Loan loss provisions / Average Gross Loans 4.1% 3.85% Bci's asset quality is supported by proactive risk management and monitoring. 3.64% We have a stock of over US$ 320 Million in additional provisions. 3.6% 3.65% Our loan portfolio is well diversified by business lines, e
Slide 15: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) 1.64% 1.45% 1.33% 1.29% 1.23% 1.18% 1.18% 1.17% 1.18% 1.08% 0.84% 0.85% 2020 2021 2022 2023 Sep'23 Sep'24 2020 2021 2022 2023 Sep'23 Sep'24 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 1.83% 3.46% 3.27% 3.03% 2.84
Slide 16: Financial Services: NPL's
Financial Services: NPL's Figures are converted to US$ using an FX of USD/CLP of 897.68 (October 1st 2024)
Slide 17: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of September 2024 1,106 992 11.5% 835 778 205 259 Sep'2023 Sep'2024 CNB BCI Local Efficiency Ratio* 51.7% 48.7% 48.9% 47.2% 47.9% 45.0% 2020 2021 2022 2023 Sep'23 Sep'24 * Efficiency ratio as calculated by the CMF (operating
Slide 18: Balance sheet
Balance sheet US$ million (*) 2020 2021* 2022* 2023* CAGR 3Q 2023* 3Q 2024* %D 2019-2023 Cash 5,122 4,628 4,742 4,032 -7.66% 4,238 3,646 -13.97% Securities 10,211 21,580 22,220 20,140 25.41% 22,346 18,191 -18.59% Loans 39,073 49,073 52,375 55,863 12.65% 55,439 57,865 4.38% Other Financial Instrument
Slide 19: Financial results
Financial results CAGR US$ million (*) 2020 2021* 2022* 2023* 3Q 2023* 3Q 2024* %D 2020-2023 Net Interest Income 1,625 1,780 2,573 2,252 11.49% 529.0 567.5 7.28% Net Service Fee Income 374 386 409 380 0.52% 98.1 115.2 17.37% Other Operating Income 265 242 25 176 -12.75% 15.1 15.9 5.9% Operating Inco
Slide 20: City National Bank
Ci National Bank
Slide 21: We continue to expand our NIM, strengthen our liquidity position, increase our capital ratios
We continue to expand our NIM, strengthen our liquidity position, increase our capital ratios and our CRE portfolio is well managed Client Deposits Liquidity NIM Capital Investments CRE Client deposits have We maintained ~$9B NIM increased 16bps Our CET 1 ratio 99% of our Our commercial real increas
Slide 22: Client deposits have grown significantly higher than the banking industry
While total deposits in the banking industry have slightly increased (includes brokered deposits), our client deposits have grown significantly higher Total Deposits ($MM) Banking Industry - Total Deposits ($B) Client Deposits QoQ change: ($200MM) -1.1% Client Deposits YTD change: +$393MM +2.2% ($33
Slide 23: Loans increased QoQ by $364MM while maintaining strong asset quality
Loans increased QoQ by $364MM (2.1%) while maintaining our strong asset quality (NPLs 0.70% and lower) Total Assets ($MM) Total Loans & Leases ($MM) +$62 Core Loans QoQ change: +$364MM +2.1% Non-owner (0%) Core Loans YTD change: +$513MM +2.9% occupied CRE +$490 represents $26,128 $26,179 $26,190 48%
Slide 24: CRE loans are well diversified across various property types with low LTVs
CRE loans are well diversified across various property types with low LTVs (49%), strong DSCR (1.9x) and excellent asset quality and ACL ratios CRE by Property Type ▪ ~16.4% of CRE loans are outside of FL, representing All CRE categories have strong LTVs of 55% or below supported by only ~8% of Tota
Slide 25: Strategic partial restructuring of investment portfolio and BOLI in Q3
We executed a strategic partial restructuring of our investment portfolio and BOLI in Q3 to further accelerate earnings improvement Rationale: Restructure portions of our investment portfolio and BOLI holdings in order to enhance the yields of both portfolios and accelerate earnings growth ▪ In Sept
Slide 26: We repositioned portions of our BOLI and investment portfolios in Q3
We repositioned portions of our BOLI and investment portfolios in Q3 in order to optimize future results 26 Source: City National Bank of Florida
Slide 27: Normalizing for extraordinary items in Q3, net income is higher QoQ
Normalizing for extraordinary items in Q3 (loss on investment and BOLI repositionings, higher provisions, etc. net income is $15MM (49%) higher QoQ Quarterly net income after taxes $MM Normalization of net income after taxes for Q3-2024 $MM +$71 +$15 (+49%) $47 $14 ($26 $47 ) $9 $10 $32 $65 ($24) Q2
Slide 28: Operating income increased ~13% QoQ driven by NIM expansion
Operating income increased ~13% QoQ driven by NIM expansion Overall NIM expanded QoQ by 16bps to 2.11% and by 28bps compared to Q4 28 Source: City National Bank of Florida
Slide 29: We added $29MM in loan provisions in Q3'24
We added $29MM in loan provisions in Q3’24, with $14MM coming from newly implemented qualitative factors $29.1MM of additional provisions in Q3 5. 195.2 (6.3) 14.2 0 172.4 8.4 12.8 (11.3) ▪ $10MM of ▪ Impact of new ▪ Increases due ▪ Primarily due to a additional qualitative factors to higher single
Slide 30: Net interest income and margin increased for the third consecutive quarter
Both net interest income and margin have increased for the third consecutive quarter. Our quarterly NIM expanded 28bps when comparing Q3-24 vs Q4-23 Net interest income ($MM) Net Interest Margin (%) +$13.2 NIM expanded 16bps in Q3-2024, due to lower cost of funds (8bps) and higher yield on +$1.6 (+1
Slide 31: Teaming up for success: University of Miami
Teaming up for success: University of Miami We are now the Official Bank of the University of Miami! ▪ The University of Miami and City National Bank have been fixtures in South Florida for a combined 175 years, and we share a deep commitment to improving our community for future generations 31 Sour
Slide 32: 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