Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q4 2022 Earnings Presentation
28 slides from Banco De Credito E Inversiones's earnings presentation, February 2023
Slide 1: Corporate Presentation 4Q 2022
Corporate Presentation 4Q 2022 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl February 2023
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 December 2022 • Largest bank in Chile (total loans) US$91.2 bn US$54.9 bn • 3rd Largest Florida-based bank (+12.8% YoY) (+11.9% YoY) Total asset
Slide 4: Chilean financial system
Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 855.86 (January 3rd 2023) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca opera
Slide 6: Bci Consolidated
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 Private pension Board of Directors is composed by experts in various fields, academics, economists, funds bankers and individuals connected with th
Slide 8: Sustainability
Sustainability Our committment Financial inclusion Supporting Scaleups Responsible Banking Sustainable finance Nasdaq Sustainable Bond Network Green Bond Transparency Platform Supporting 200.000 SMEs with partners
Slide 9: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark In US$mm, as of December 2022 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 14.5% 17.1% 14.1% 16.3% 14.6% 10.0% 13.4% 15.3% 18.4% 15.4% 14.9% 12.6% 9.5% 13.8% Commercial Consumer Mortgage Deposits1 Net incom
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$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 855.86 (January 3rd 2023); Include C
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Local loans market share2 (%) Return on average Equity (ROAE)1 as of December 2022 Chile 31.43% 28.63% 21.56% 17.81% 18.03% 13.28% +85 bps of market share Return on average assets (ROAA)1 as of December 2022 2.66% 1.22% 1.30% 1.10% 1.17% 1.10% Source: CMF as of De
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. We have a stock of over US$ 415 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sec
Slide 14: Evolution of NPL's
Evolution of NPL's 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) *Does not include Interbank loans
Slide 15: Financial Services: NPL's
Financial Services: NPL's 15 Figures are converted to US$ using an FX of 855.86 (January 3rd 2023)
Slide 16: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of December 2022 2021 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 included in t
Slide 17: MACH is a key part in the construction of this Ecosystem
MACH is a key part in the construction of this Ecosystem Key Strategic Priorities MACH digital account 3.5 MM costumers Digital Ecosystem One-Stop BciPlus+ loyalty Shop program 6.000 +5 MM costumers businesses 10 MM by 2025
Slide 18: Balance sheet
Balance sheet CAGR US$ million (*) 2018 2019 2020 2021* 2022* 2018-2022 Cash 2,405 3,685 5,372 4,628 4,973 19.91% Securities 6,158 7,280 10,710 21,580 23,306 39.48% Loans 34,908 39,341 40,983 49,073 54,934 12.00% Other Financial Instruments 70 137 76 158 367 51.46% Fixed Assets 329 292 294 515 480 9
Slide 19: Financial results
Financial results CAGR US$ million (*) 2018 2019 2020 2021* 2022* 2018-2022 Net Interest Income 1,262 1,544 1,704 1,867 2,699 20.92% Net Service Fee Income 358 411 392 405 429 4.63% Other Operating Income 232 255 278 254 26 -42.02% Operating Income 1,620 1,955 2,096 2,271 3,154 18.12% Provision for
Slide 20: City National Bank of Florida
City National Bank of Florida
Slide 21: Executive Summary
Executive Summary Balance • Core loans (excl. PPP) increased $722MM (+4.6%) QoQ and $3.9B (+30.7%) YoY, exceeding the banking industry average; already strong asset quality ratios continued to improve in the 4th quarter Sheet • Client deposits declined $379MM (-2.1%) QoQ and $710MM (-3.9%) YoY due t
Slide 22: We increased our total assets by $1B QoQ while maintaining significant on-balance sheet liquidity
We increased our total assets by $1B QoQ while maintaining significant on-balance sheet liquidity Total Assets ($MM) Cash & Investments ($MM) QoQ increase: +$1B +4.3% QoQ increase: +$301MM +4.3% YoY increase: +$3.3B +15.2% YoY decrease: -$122MM -1.6% $7,417 $7,295 $6,994 Investment Portfolio Cash &
Slide 23: Our loans (excluding PPP) increased $3.9B YoY or 31%
Our loans (excluding PPP) increased $3.9B YoY or 31% as a result of strong loan production, which significantly exceeds the industry Total Loans & Leases ($MM) QoQ increase (non-PPP growth): +$722MM +4.6% YoY increase (non-PPP growth): +$3.9B +30.7% $16,541 $15,847 $128 $100 $13,280 $704 PPP Loans T
Slide 24: CNB client deposits decreased, consistent with the overall banking industry
CNB client deposits decreased, consistent with the overall banking industry, which is incurring deposit outflows and increased price competition Client Deposits ($MM) – Excludes Brokered Deposits Banking Industry - Total Deposits ($B) QoQ decrease: -$379MM -2.1% QoQ decrease: -$153B -3.4% YoY decrea
Slide 25: Net income for 2022, 12% higher than prior year
Net income for 2022, 12% higher than prior year mainly driven by $117MM of operating income growth 2022 core earnings, 26% higher than 2021
Slide 26: Our net income improvement was mainly driven by increased core net interest income
Our net income improvement was mainly driven by an increased core net interest income (excl. PPP & MSLP) +$81 (+27%) ($26) $17 ($32) $381 ($4) $0 2021 Net interest PPP & MSLP Non-interest Non-interest Gain on sale Others 2022 Net Income income (excl. origination fees income expense of securities (Am
Slide 27: Net interest income in Q4'22, excluding PPP & MSLP, increased $30MM
Net interest income in Q4’22, excluding PPP & MSLP, increased $30MM (24%) vs the same quarter of last year Net interest income ($k) Net interest margin (%) $164,234 $158,557 2.94 $3,607 $1,083 2.74 0.06 2.70 0.01 $137,799 PPP/MSLP Impact PPP & MSLP fees Net Interest Income Core NIM (ex (ex. PPP/MSLP
Slide 28: 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) — Q4 2022 Earnings Presentation on 6ix