Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2021 Earnings Presentation
31 slides from Banco De Credito E Inversiones's earnings presentation, November 2021
Slide 1: Corporate Presentation 3Q 2021
Corporate Presentation 3Q 2021 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl November 2021
Slide 2: Bci at a glance
—_— Bci at a glance
Slide 3: Leading financial institution in Chile in Assets
Leading financial institution in Chile in Assets... Profitable and financially sound Diversified business model Bci/Subsidiary Diversification as of September 2021 • Largest bank in Chile (total loans) US$79.35 bn US$48.16 bn • 3rd Largest Florida-based bank (+12.9% YoY) (+6.5% YoY) Total assets Tot
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. GDP growth scenarios1 (%, yoy) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of US$/CLP of 811.9 (October 1st 2021) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operations in Colo
Slide 6: Bci Investor Relations
Bci Investor Relations Bci
Slide 7: A successful strategy supported by its strong corporate governance
A successful strategy supported by its strong corporate governance Long-term support from its controlling shareholders… …and strong corporate governance Board of Directors is composed by experts in various fields, academics, Private pension economists, bankers and individuals connected with the worl
Slide 8: Delivering a sustainable value proposition to all our stakeholders
Delivering a sustainable value proposition to all our stakeholders BCI Marketplace: where SMEs and entrepreneurs can market their products. Microsoft for StartUps Challenge: with more than 100 applicants. Financial Inclusion Launch of the first "Bci Compras" team challenge: Digitization of banking p
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark (local) Chilean banking system benchmark (consolidated) In US$mm, as of September 2021 In US$mm, as of September 2021 Other Other banks banks (12) (12) 14.3% 18.1% 14.1% 16.7% 14.0% 9.6% 13.1% 18.3% 18.1% 16.0% 14.0% 11
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) Source: Financial Market Commission (CMF).as of September 2021 10 Note: Figures are converted to US$ using an FX of US$/CLP of 811.9 (October 1st 2021) ; Include C
Slide 11: Successful organic growth in Chile
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of September 2021 Chile 20.67% 16.58% 15.57% 11.97% 12.17% 0.79% +136 bps of market share Return on average assets (ROAA)1 as of September 2021 1.29% 1.37% 1.08% 0.82% 0.49% 0.05% Source: CMF as of
Slide 12: …with diversified and low funding cost
…with diversified and low funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type1 Long term funding composed primarily of UF local bonds in the Chilean market, complemented by other international issuances, through our EMTN program in US dollars, Euros, Swiss Fra
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. Since 2020 we have built over US$ 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)
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively MUS$ Nota: Excludes all subsidiaries and City National Bank of Florida. 15 Figures are converted to US$ using an FX of USD/CLP of 811.9 (October 1st 2021) * LLP = Loan loss provisions
Slide 16: Controlling Operating Expenses
Controlling Operating Expenses Operating Expenses Expense Breakdown US$ million as of September 2021 Efficiency Ratio* * Efficiency ratio as calculated by the CMF (operating expenses excluding other operating expenses/gross operating result). Since 1Q18, additional allowances are not included in the
Slide 17: Aiming to become Chile's leading digital Bank
Aiming to become Chile’s leading digital Bank Bigger and more engaged High transaction growth Customer Base 3.1 1.1X 3.6X millions YoY YoY Registered users Growth of Growth of Digital Card Payments Physical Payments 2.7 120K millions Net cards issued MACH Pay merchants 1.7X 1.6X YoY YoY 75% US$ 23.1
Slide 18: Balance sheet
Balance sheet CAGR US$ million (*) 2017 2018 2019 2020 3Q 2021 3Q 2020 %D 2017-2020 Cash 1,842 2,536 3,884 5,663 45.40% 4,367 4,741 -7.89% Securities 5,826 6,492 7,674 11,290 24.67% 16,645 9,683 71.90% Loans 29,941 36,798 41,471 43,202 13.00% 47,282 44,831 5.47% Other Financial Instruments 273 73 14
Slide 19: Financial results
Financial results CAGR US$ million (*) 2017 2018 2019 2020 3Q 2021 3Q 2020 %D 2017-2020 Net Interest Income 1,151 1,330 1,628 1,796 15.98% 439 402 -8.42% Net Service Fee Income 331 377 433 413 7.69% 112 119 5.68% Operating Income 1,482 1,708 2,061 2,210 14.23% 552 521 -5.55% Other Operating Income 2
Slide 20: City National Bank of Florida
City National Bank of Florida
Slide 21: Executive Summary
Executive Summary • Loan production excluding PPP has surpassed 2019 levels by 19%, propelling core loan growth Balance • Total customer deposits increased by $457MM QoQ and $4B or 31% YoY Sheet • Deferments have declined to only $37MM as of September 30th or 0.32% of total loans & leases Evolution
Slide 22: Loans generated at levels exceeding 2019 levels
We are generating loans (excluding PPP) at levels that significantly exceed 2019 levels Total Loans & Leases Loan Production QoQ increase: +$40MM +0.32% ’19 vs ’21 Total Growth: +$1.8B +72% YoY increase: +$95MM +0.78% ’19 vs ’21 Growth (w/o PPP): +$975MM +40% $12,277 $12,333 $12,372 $1,358 $996 $1,8
Slide 23: PPP fees have significantly impacted our results
PPP fees have significantly impacted our results & $28.5MM have yet to be recognized $2,000 $1,849 ( $196 ) $1,800 $1,653 ( $1,447 ) $1,600 $1,400 $1,200 $790 $996 $1,000 $800 $600 $400 $200 $- PPP Loans 1.0 PPP forgiveness & payoffs Outstanding PPP loans PPP forgiveness & payoffs YTD PPP Loans 2.0
Slide 24: Customer deposits increased by $457MM in the quarter
Customer deposits increased by $457MM in the quarter & our deposit growth rate exceeds the industry as a whole Customer Deposits Deposit Growth Rates QoQ increase: +$457MM +3% YoY increase: +$4B +31% $16,669 $17,126 $13,098 $6,522 $6,948 Non-Interest Bearing Customer Deposits $4,721 Interest Bearing
Slide 25: We have increased our FL deposit market share
We have increased our FL deposit market share from 12th to 10th The Deposit Market Share report takes deposit data provided by financial institutions in the Summary of Deposits Report which is filed once a year as of June 30th As of June 30, 2021, City National Bank ranks #10 in terms of deposit mar
Slide 26: Asset quality is strong and deferments have declined
Asset quality is strong and deferments have declined to minimal levels Loan Deferments ($MM) Non-Performing Loans ($000’s) $103,115 Reduced deferments from ~$3bn to $37MM as of September 30th $79,689 $47,424 Dec-19 Dec-20 Sep-21 NPL Ratio (%) 0.43% 0.96% 0.74% Past Due Ratio (%) 0.28% 0.75% 0.42% De
Slide 27: Core earnings have increased by $49MM or 24% YoY
Core earnings have increased by $49MM or 24% YoY Q3 Q2 Q3 $ Var % Var YTD YTD $ Var % Var INCOME STATEMENT ($ millions) 2020 2021 2021 QoQ QoQ 2020 2021 YoY YoY (+) Net Interest Income $113.7 $130.9 $132.0 $1.1 0.8% $329.5 $388.9 $59.4 18.0% (+) Non-Interest Income $21.3 $18.6 $19.6 $1.0 5.4% $55.2
Slide 28: Net interest income, excluding PPP & MSLP, increased 5% QoQ
Net interest income, excluding PPP & MSLP, increased by $6.2MM or 5% QoQ Net interest income ($) Net interest margin (%) $130,950 $132,041 $50 $7,935 $113,707 $13,016 $4,845 $7,055 $117,884 $124,106 $101,807 3Q'20 2Q'21 3Q'21 Net Interest Income (ex PPP/MSLP fees) PPP Fees MSLP Fees PPP Accretion In
Slide 29: We increased non-interest income by 9% YoY
We increased non-interest income by 9% YoY (excluding swap fees) +$4.9MM Increase in deposit service charges driven by re- (+9%) pricing of Treasury Management Services during Q3 2020 & impact of new PPP clients cross-sold $57.2 Treasury Management Services (≈$2.5MM annual $52.3 impact) Significant
Slide 30: Closing Remarks
Closing Remarks ● We have successfully diversified our operations. ● MACH, with more than 3 million users, has consolidated its position. ● Our operating revenues increased 11.55% YoY on a YTD basis. ● We have booked more than USD 328 million in additional provisions. ● The Bank maintains a strong f
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) — Q3 2021 Earnings Presentation on 6ix