Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2020 Earnings Presentation
36 slides from Banco De Credito E Inversiones's earnings presentation, November 2020
Slide 1: Corporate Presentation
Corporate Presentation Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl November 2020
Slide 2: Bci at a glance
Bci Investor Relations Bci at a glance
Slide 3: Leading financial institution in Chile in Loans
Leading financial institution in Chile in Loans Profitable and financially sound Diversified business model as of September 2020 Largest bank in Chile (total loans) US$72.40 bn US$47.15 bn 3rd Largest Florida-based bank (+21.3% YoY) (+13.5% YoY) Total assets Total loans CNB : 24% Assets Bci Miami :
Slide 4: Chilean financial system
Bci Investor Relations Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system The world GDP contraction in 2020 is reduced by latest forecast Total loans in the banking system1 (US$bn) NPL 2 . 18 % 2021 259.9 2020 249.3 2 . 13 % 226.6 200.4 2 . 08 % 192.1 182.0 2.07% 2 . 03 % 1 . 98 % 1 . 93 % 1.93% 1.90% 1 . 88 % 1.86% 1.85% 1 . 83 %
Slide 6: Bci
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 Private Board of Directors is composed by experts in various fields, pension academics, economists, bankers and individuals connected funds with t
Slide 8: We aim to promote economic, social, and environmental well-being
We aim to promote economic, social, and environmental well-being. This quarter we achieved a Record 93% of Employee Engagement. We continue deploying home-office initiatives, supporting employees with Employee Experience flexible time. Promoting Financial Inclusion in Chile through MACH, reaching mo
Slide 9: ...while having a relevant position in the market
…while having a relevant position in the market Chilean banking system benchmark (local) Chilean banking system benchmark (consolidated) In US$mm, as of September 2020 In US$mm, as of September 2020 Other Other banks banks (12) (12) 14.2% 18.4% 14.3% 16.6% 13.6% 10.0% 12.8% 17.6% 17.6% 15.7% 14.0% 1
Slide 10: Domestic loan growth
Domestic loan growth Total loans (US$mm) Commercial & Interbank loans (US$mm) 13.5% 19.5% 31,590 43,569 47,151 15.1% 41,546 14.0% 28,000 21,170 38,614 32,917 26,435 31,427 24,580 19,580 29,489 18,420 31,353 20,254 17,443 28,608 18,909 25,727 15,529 24,026 15,232 10,420 12,560 8,420 8,015 9,124 10,65
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 2020 Chile 12.7% 13.6% 7.8% 8.0% 11.4% 19.0% 18.3% 17.0% 16.6% (22.9%) 15.0% +128 bps of Return on average assets (ROAA)1 market share as of September 2020 14.3% 1.1% 13.6% 0.8% 13.0% 0
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 Other Liabilities in the Chilean market, complemented by other 17.0% Equity 6.9% international issuances, through our EMTN pr
Slide 13: ...while maintaining prudent risk
…while maintaining prudent risk Highlights Risk index (Allowances / Average Gross Loans) 3.22% Bci's asset quality is supported by proactive risk management and 3.19% 3.1% monitoring, as well as a continued focus 3.09% Due to all these efforts, our risk ratios have remained at healthy levels over ti
Slide 14: Non-Performing Loans (NPLs)
Non-Performing Loans (NPLs) NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial & Interbank Loans) 1.65% 1.56% 1.42% 1.40% 1.41% 1.35% 1.36% 1.36% 1.36% 1.31% 1.24% 1.12% 2016 2017 2018 2019 3Q2019 3Q2020 2016 2017 2018 2019 3Q2019 3Q2020 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 2.78% 2.
Slide 15: Financial Services
Validar D Financial Services Total Loans (US MM$) 946.6 910.0 687.4 659.6 NPL Ratio 5.6% 4.1% 4.1% 3.5% Note: Figures are converted to US$ using an FX of USD/CLP of 788.15 (October 1st 2020) 15
Slide 16: Significant improvement in our efficiency ratio
Significant improvement in our efficiency ratio Operating Expenses Expenses Breakdown as of Sep’20 US$ million 857 2.67% 880 sep'19 sep'20 Efficiency ratio 51.6% 50.1% 50.7% 47.8% 47.7% 45.0% 2016 2017 2018 2019 3Q2019 3Q2020 Source: Company fillings. Efficiency ratio includes City National Bank of
Slide 17: Digital Transformation Plan
Digital Transformation Plan 17
Slide 18: Bci is rapidly embracing Digital Transformation
Bci is rapidly embracing Digital Transformation MACH: disruptive innovation quickly penetrating the market +2.6 M accounts +1.8 M activated Visa cards More than 100K e-commerce, physical payments & in-app services accept MACH 76.2% NPS 2,562,853 2,320,209 2,082,352 2,155,910 1,826,061 1,673,657 1,66
Slide 19: Balance sheet
Balance sheet US$ million (*) 2016 2017 2018 2019 CAGR 3Q 2019 3Q 2020 %D 2016-2019 Cash 2,002 1,898 2,612 4,001 25.97% 3,067 4,884 59.26% Securities 4,813 6,002 6,687 7,905 17.99% 7,127 9,974 39.95% Loans 28,139 30,844 37,906 42,720 14.93% 40,721 46,182 13.41% Other Financial Instruments 386 282 76
Slide 20: Financial results
Financial results CAGR US$ million (*) 2016 2017 2018 2019 3Q 2019 3Q 2020 %D 2016-2019 Net Interest Income 1,148 1,186 1,371 1,677 13.45% 418 453 8.24% Net Service Fee Income 345 341 389 446 9.00% 123 116 -5.54% Operating Income 1,493 1,527 1,759 2,123 12.45% 541 568 5.11% Other Operating Income 13
Slide 21: City National Bank of Florida
Bci Investor Relations City National Bank of Florida 21 21
Slide 22: Executive Summary
Executive Summary 28% increase in net income QoQ despite increase in provisions due to higher net interest income & non-interest income Third Quarter Client deposits increased by $410MM in Q3 & $2.2B YoY Results $35MM of loan loss provisions recorded driven by macro-economic factors & risk grade mig
Slide 23: Our digital capabilities have enabled our success
Our digital capabilities have enabled our success registered online % increase YoY in 23,000+ members 18% 36% number of customers YoY enrolled in Bill Pay Nearly 75% of PPP loans processed 75% members were 9,000+ remotely active in September Number of Zelle Nearly 100 MSLP 8,000+ transfers completed
Slide 24: Balance Sheet Consolidated
Balance Sheet Consolidated $ Var % Var Sep-19 Jun-20 Sep-20 $ Var YoY % Var YoY $174MM decline in gross BALANCE SHEET ($ millions) QoQ QoQ Commercial & Industrial $2,063 $1,997 $1,919 ($78) -3.9% ($144) -7.0% loans in the quarter led by PPP Loans $0 $1,822 $1,850 $27 1.5% $1,850 0.0% Commercial Mort
Slide 25: Substantial deposit growth continued to the third quarter
Substantial deposit growth continued to the third quarter Total Loans & Leases Total Deposits Client deposits have increased by $1.9B or 17% over the past two quarters Note: Information in millions Source: City National Bank 25
Slide 26: Paycheck Protection Program
Paycheck Protection Program as of Oct 13th, 2020 Count (#) Loan Amount ($) Avg. Loan Size Fees Loan Segment Total Client Prospect Total Client Prospect $ % $ < $350k 8,342 2,893 5,449 604,555,064 221,473,236 383,081,828 72,471 5.00% 30,227,753 > $350k to $2MM 936 430 506 719,145,486 334,788,671 384,
Slide 27: We have funded 38% of the MSLP loans nationally through September
We have funded 38% of the MSLP loans nationally through September CNB funded 97 out of 252 loans Based on loan amount, CNB represents 23% of the national funding: Only lender with more than 10% share of the national funding – 47% of MSLP loans to new clients that require full banking relationship We
Slide 28: Our deposit mix continues to improve with DDAs increasing
Our deposit mix continues to improve with DDAs increasing Total Deposits ($) $11,559 $11,854 $11,891 $13,266 $13,348 Cost of deposits dropped to 39bps for 3rd Qtr with additional reductions executed in October Note: Information in millions Source: City National Bank 28
Slide 29: The Bank has a significant capital buffer in this period of uncertainty
The Bank has a significant capital buffer in this period of uncertainty Additional $1.8B in average assets related to PPP loans decreased the Bank’s actual leverage ratio by 119bps We are entering this period of uncertainty with a significant capital buffer Excess capital will enable us to increase
Slide 30: Total deferrals, past dues and nonaccruals have declined significantly
Total deferrals, past dues and nonaccruals have declined significantly Current Deferrals 4% of Loans (exl. PPP) Source: City National Bank 30
Slide 31: Our loan portfolio is substantially real estate secured with low LTVs
Our loan portfolio is substantially real estate secured with low LTVs Note: Information in 000’s- excludes PPP/MSLP loans Source: City National Bank 31
Slide 32: We are proactively provisioning for loan losses due to COVID-19
We are proactively provisioning for loan losses due to COVID-19 $35,000 The Bank’s ALLL methodology is under the incurred Provision loss model, not CECL Note: Information in 000’s Source: City National Bank 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement 3rd Qtr 2nd Qtr 3rd Qtr $ Var % Var YTD YTD $ Var % Var Increase in net interest INCOME STATEMENT ($ millions) 2019 2020 2020 QoQ QoQ 2019 2020 YoY YoY income QoQ of $3.2MM is (+) Net Interest Income $100.6 $110.5 $113.7 $3.2 2.9% $304.3 $329.5 $25.3 8.3% substantially
Slide 34: We closed the Executive National Bank transaction on October 9th
We closed the Executive National Bank transaction on October 9th Balance Sheet Adjusted Purchase & 1x Sep 30th, 2020 ($MM) CNB ENB Adjustments ENB Adjustments Consolidated Consideration paid of $62MM reflects a $13MM reduction from the original price Cash 594 134 - 134 (45) 683 Investments 3,418 28
Slide 35: Key Metrics
Key Metrics 2014 2015 2016 2017 2018 2019 2020 3Q 2020 Loans & Leases/ Assets 61.90% 62.40% 64.50% 69.44% 70.57% 68.96% 70.63% 70.63% Loans / Deposits 79.60% 90.10% 95.00% 90.28% 89.57% 92.15% 91.97% 91.97% DDA / Deposits 44.00% 43.30% 37.70% 32.16% 28.77% 29.87% 35.38% 35.38% ROAA 0.85% 0.80% 0.96%
Slide 36: 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) — Q3 2020 Earnings Presentation on 6ix