Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q1 2021 Earnings Presentation
32 slides from Banco De Credito E Inversiones's earnings presentation, April 2021
Slide 1: Corporate Presentation 1Q 2021
Corporate Presentation 1Q 2021 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl April 2021
Slide 2: Bci at a glance
—_— Bci at a glance
Slide 3: Leading financial institution in Chile in Loans
Leading financial institution in Chile in Loans Consolidated Operations Profitable and financially sound Diversified business model as of March 2021 • Largest bank in Chile (total loans) US$78.73 bn US$50.18 bn • 3rd Largest Florida-based bank CNB : 25.4% Loans (-1.1% YoY) (-2.7% YoY) Bci Miami : 2.
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE GDP growth (%, yoy) Total loans in the banking system1 (US$bn) 6.5 300 .0 NPL 278.4 281.4 3.0 0% 272.2 250 .0 247.4 218.8 3.7 3.7 209.8 2.5 0% 200 .0 198.8 2.3 2.07% 1.7 1.2 0.9 150 .0 1.86% 1.85% 1.93% 1.90% 2.0 0% 100 .0 1.58% 1.55% 1.5 0% 50. 0 0.0 1
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 …and strong corporate governance Long-term support from its controlling shareholders… Board of Directors is composed by experts in various fields, academics, Private pension economists, bankers and individuals connected with the worl
Slide 8: Promotion of economic, social and environmental well-being
Promotion of economic, social and environmental well- being that has been widely recognized Employee We ranked third in the Great Place to Work survey of the best companies to work for Experience in Chile, in the +1000 employees category Financial Through MACH, we have fostered the financial inclusi
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$mm, as of March 2021 In US$mm, as of March 2021 Other Other banks banks (12) (12) 14.2% 18.3% 14.3% 16.9% 13.7% 9.8% 12.9% 18.1% 17.4% 15.5% 14.3% 11.6% 10.7
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) -2.7% -3.4% 13.2% 13.8% 33,917 47,573 49,688 51,556 50,182 32,599 32,766 30,573 42,162 23,165 22,170 26,839 22,296 21,380 34,234 32,199 22,115 19,046 28,091 16,956 10,304 10,752 10,596 12,481 13,495 12,735 9,193 9,963 11,
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of March 2021 Chile 15.3% 13.3% 12.9% 9.4% 8.6% 19.0% 18.2% 17.0% 17.0% (32.7%) 15.0% +134 bps of market share 14.2% Return on average assets (ROAA)1 13.6% as of March 2021 13.0% 1.0% 1.1% 0.8% 0.6%
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 Other Liabilities Long term funding composed primarily of UF local bonds in the Chilean 13.7% Equity market, complemented by other international issuances, through our EMTN 7.0% pro
Slide 13: …while maintaining prudent risk
…while maintaining prudent risk Highlights Risk index (Allowances / Average Gross Loans) 3.6% 3.43% Bci's asset quality is supported by proactive risk management and 3.35% 3.30% monitoring, as well as a continued focus 3.1% Since 2020 we have built over US$ 270 Million in additional 2.6% 2.66% provi
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) 1.40% 1.36% 1.41% 1.36% 1.36% 1.31% 1.21% 1.24% 1.25% 1.22% 1.18% 1.17% 2017 2018 2019 2020 1Q 2020 1Q 2021 2017 2018 2019 2020 1Q 2020 1Q 2021 NPL Ratio (Consumer Loans) NPL Ratio (
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively. 912.2 Total Loans 856.5 (US MM$) 5.6% 4.5% NPL Ratio 3.8% 3.1% Note: Figures are converted to USD using an FX of 721.82 (April 1st 2021). 15
Slide 16: Controlling Operating Expenses
Controlling Operating Expenses Operating Expenses Expense Breakdown US$ million as of March 2021 330 -2.32% 322 32% 55% 267 260 63 62 13% Mar'20 Mar'21 Human Resources Technology Other CNB BCI Local Efficiency Ratio* 51.6% 50.7% 47.8% 47.2% 47.7% 46.6% 2017 2018 2019 2020 1Q 2020 1Q 2021 * Efficienc
Slide 17: Digital Transformation Plan
Digital Transformation Plan Bci App 17
Slide 18: Bci is rapidly embracing Digital Transformation
Bci is rapidly embracing Digital Transformation MACH: disruptive innovation quickly penetrating the market +2.9 M accounts +2.3 MM active cards More than 110K e-commerce, physical payments & in-app services accept MACH 73.9% NPS 18
Slide 19: Balance sheet
Balance sheet CAGR US$ million (*) 2017 2018 2019 2020 1Q 2020 1Q 2021 %D 2017-2020 Cash 2,072 2,852 4,369 6,370 45.40% 4,275 6,455 50.99% Securities 6,553 7,302 8,632 12,698 24.67% 10,468 13,128 25.41% Loans 33,678 41,390 46,646 48,593 13.00% 50,560 49,128 -2.83% Other Financial Instruments 308 83
Slide 20: Financial results
Financial results CAGR US$ million (*) 2017 2018 2019 2020 1Q 2020 1Q 2021 %D 2017-2020 Net Interest Income 1,295 1,496 1,831 2,021 15.98% 487 577 18.50% Net Service Fee Income 372 424 487 465 7.69% 127 110 -13.33% Operating Income 1,667 1,921 2,318 2,486 14.23% 614 687 11.94% Other Operating Income
Slide 21: City National Bank of Florida
City National Bank of Florida
Slide 22: Executive Summary
Executive Summary • CNB share of FL PPP lending (~6%), 3x higher than its FL deposit market share (~2%) Balance • CNB funded a fifth of MSLP loan units nationally and 12% of dollars funded through the program Sheet • Liquidity position has been enhanced as a result of our deposit cross sell efforts
Slide 23: Our PPP participation was 3x our fair share
Our PPP participation was 3x our fair share CNB over indexed in PPP lending by 3x… … creating an extra $38M in origination fees CNB FL deposit ($) market share vs. PPP FL ($) market share(1) CNB PPP Fees actual vs. fair share CNB FL Dep Market Share CNB PPP Share by Dollars Fair Share Actual funding
Slide 24: We led the nation in MSLP originations
We led the nation in MSLP originations CNB funded a fifth of MSLP loan units nationally and 12% of loan dollar CNB National Share of MSLP lending (#, $MM) ● Our preparation prior to the MSLP program launch paid dividends ● Educated our RMs and our clients on program benefits ● Developed a strong pip
Slide 25: Our PPP & MSLP participation increased our total assets and loans
Our PPP & MSLP participation not only increased our total assets and loans… Total Assets Total Loans QoQ increase: +$1.2B +7% QoQ increase: +$75MM +1% YoY increase: +$2.8B +18% YoY increase: +$1.6B +15% $18,616 $12,012 $12,086 $17,382 $15,841 $1,850 $1,653 $10,481 ENB Loans $10,162 $10,434 (~+$340MM
Slide 26: …but also increased our commercial customers & our deposits
…but also increased our commercial customers & our deposits # of Commercial Clients Customer Deposits QoQ increase: +$1.7B +13% YoY increase: +$3.5B +31% $14.8B +28% $13.1B (+6.5) $11.3B ENB Interest Bearing Deposits (~+$293MM) ENB Non-Interest Bearing Deposits (~+$130MM) New clients account for ≈$2
Slide 27: Deferments have substantially declined & asset quality remains strong
Deferments have substantially declined & asset quality remains strong Loan Deferments ($MM) Reduced deferments from ~$3bn to $290MM as of December 31 st Deferrals Breakdown ($MM) ALLL Coverage Ratio (ALLL + Loan Mark / Loans (ex. PPP) +0.87 WAvg LTV% RE Secured: 57% 1.47 0.60 Dec 2019 Actual Dec 202
Slide 28: Income Statement
Income Statement 4th Qtr 3rd Qtr 4th Qtr $ Var % Var YTD YTD $ Var % Var INCOME STATEMENT ($ millions) 2019 2020 2020 QoQ QoQ 2019 2020 YoY YoY (+) Net Interest Income $101.0 $113.7 $131.6 $17.9 15.8% $405.3 $461.2 $55.9 13.8% (+) Non-Interest Income $18.8 $21.3 $18.2 -$3.1 -14.7% $67.1 $73.3 $6.2 9
Slide 29: Our PPP & MSLP participation has enhanced net interest income
Our PPP & MSLP participation has enhanced net interest income Net interest income ($) Net interest margin (%) $131,622 $113,707 $14,334 $101,037 $4,845 $11,496 $7,055 3.06% 2.79% 2.80% 0.44% 0.10% $101,807 $105,793 2.70% 2.62% 4Q'19 3Q'20 4Q'20 4Q'19 3Q'20 4Q'20 Core NIM (ex PPP/MSLP Impact) PPP/MSL
Slide 30: We increased non-interest income by 9% YoY
We increased non-interest income by 9% YoY +$6.2MM (+9.3%) ● $5.3MM or 91% increase in gain on sale of loans from mortgage banking activities ● Although service charges on deposit accounts are flat YoY due to temporary decline in transaction activity due to pandemic, new PPP & MSLP clients cross sol
Slide 31: Closing Remarks
Closing Remarks • Supporting employees, clients and suppliers after COVID-19 outbreak. • Our digital transformation have allowed us to respond quickly and simply to clients’ needs, technologically enabling our employees to work remotely in record time. • Bank’s sound capital and liquidity position.
Slide 32: Forward-looking statements disclaimer
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) — Q1 2021 Earnings Presentation on 6ix