Banco De Chile · BCS:CHILE
Banco De Chile — Q2 2024 Earnings Presentation
25 slides from Banco De Chile's earnings presentation, Aug 2, 2024
Slide 1: Earnings Presentation 2Q24
Earnings Presentation 2Q24 August 2nd, 2024
Slide 2: Economic & Banking Industry Overview
Economic & Banking Industry Overview 1
Slide 3: The economy continues posting positive trends
The economy continues posting a positive trends Trade Balance Monthly Chile’s GDP Growth USD Bn, LTM YoY 17.8 15.3 15.3 15.5 6.3% 12.4 9.1 7.2 3.7 4.4% 2.5 1.2 Sep-22 Sep-23 Mar-22 Mar-23 Mar-24 Dec-22 Dec-23 Jun-22 Jun-23 Jun-24 2.3% Labor Market % 1.6% 0.6% 0.5% 0.3% 10% Unemployment Real Wage (Ri
Slide 4: Higher than expected inflationary persistence
10% 12% 14% 16% 0% 2% 4% 8% 6% YoY, % Jun-19 Sep-19 Dec-19 Headline CPI Mar-20 Jun-20 Sep-20 Dec-20 Source: Central Bank of Chile and Bloomberg. Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 4.2% Cientos 10% 12% 0% 2% 4% 6% 8% 450 550 650 750 850 9
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 feb.2024 mar.2024 abr.2024 GDP -6.1 11.3 2.1 0.2 2.4 may.2024 jun.2024 jul.2024 Consumption -6.6 19.5 2.6 -3.9 2.6 5.3% Investment -10.8 16.0 3.9 -1.1 -1.0 4.8% 4.8% 4
Slide 6: Banking Industry: Positive results despite subdued loan growth
Banking Industry: Positive results despite subdued loan growth Quarterly Net Income Nominal Loan Growth Breakdown1 Billions of CLP YoY Net Income ROAE 1,688 Commercial Mortgage Consumer Total Loans 18.0% 1,340 1,325 1,346 14.7% 1,243 1,172 1,148 14.2% 26.7% 1,050 13.1% 949 6.6% 20.6% 3.9% 16.5% 18.4
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 Jun-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” • App integration: insurance purchase and “Fast, Timely, Secure and Digital” • Creation of a Sustainable Finance Council digital account opening available through • Opt
Slide 10: 2Q24 Financial Results
2Q24 Financial Results 3
Slide 11: Consistent market leader in profitability
Consistent market leader in profitability Quarterly Net Income¹ Net Income ROAE2 Billions of CLP Billions of CLP, 1H24 vs 1H23 Return on Average Equity 621 BCH Santander BCI 598 421 386 373 23.6% 332 341 344 324 19.1% 298 273 18.7% 260 259 15.7% 216 13.6% 197 13.1% 2018 2019 2020 2021 2022 2023 Jun-
Slide 12: Outstanding margins
Outstanding margins 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% 5.0% 4.3% 3.4% 3.5% 3.3% +3% Average 2015- 2020 2021 2022 2023 1Q24 2Q24 863 2019 780 771 748 278 Fees Margin
Slide 13: Strategically balanced loan portfolio across economic sectors
Strategically balanced loan portfolio across economic sectors Loans by Segment Total Loans % of total, June 2024 Trillions of CLP Retail 65% Wholesale 35% Commercial Mortgage Consumer Corporate +4.0% 22% +0.8% 36.4 37.6 37.9 5.2 5.3 5.3 11.8 12.3 12.7 19.4 20.0 19.9 SMEs 13% 2Q23 4Q23 2Q24 Nominal L
Slide 14: Returning to pre-pandemic balance sheet composition
Returning to pre-pandemic balance sheet composition Structure Evolution of Deposits % Over total assets % of total deposits Current accounts and other demand deposits Saving accounts and time deposits 6.0% 3.3% 2.2% Trading 5.6% 5.1% AFS 9.4% 9.1% 10.0% Equity 6.8% 4.1% HTM 2.6% 7.2% 37.0% 32.5% 12.
Slide 15: Leading in capital strength amongst peers
Leading in capital strength amongst peers 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 13.6% 13.7% 13.8% 13.0% 13.3% 12.2% 11.5% 11.1% 10.9% 11.1% 11.1% 11.1% 10.9% 10.4% 10.2% 10.0% 11
Slide 16: Exceptional asset quality through prudent risk management
Exceptional asset quality through prudent risk management Expected Credit Losses Delinquency Ratio1 Billions of CLP NPLs to Total Loans 128 Banco de Chile Santander BCI 113 95 2.6% 67 2.2% 2.2% 60 1.7% 1.5% 1.2% 2Q23 3Q23 4Q23 1Q24 2Q24 Average 2020 2021 2022 2023 1Q24 2Q24 Cost of Risk 0.73% 0.66%
Slide 17: Strong cost control and efficiency
Strong cost control and efficiency Total Expenses Quarterly Variation in Total Expenses Billions of CLP Billions of CLP 4 4 1 273 264 +3.2% 319 284 269 273 264 Efficiency vs Peers -3.9% Operating expenses to Op. Income Banco de Chile Santander BCI 44.7% 50.8% 37.6% 37.8% 34.2% 35.4% 2Q23 3Q23 4Q23 1
Slide 18: 2Q24 Key takeaways
2Q24 Key takeaways Profitability and Capital Size of circle is Net Income in Billion of CLP, as of June 2024 • Inflation and overnight rate expectations have 29% increased for 2024 to 4.3% and 5.5%, respectively. 27% GDP forecast remains unchanged at 2.4% for this 25% BCH year. 23% $621 21% • A cons
Slide 19: Appendix: Consolidated Balance Sheet
Appendix: Consolidated Balance Sheet Chilean GAAP- In millions of Chilean pesos (MCh$) 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 ‘‘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