Banco Itau Chile · BCS:ITAUCL
Banco Itau Chile — Itaú Chile — Q4 2023 Earnings Presentation
27 slides from Banco Itau Chile's earnings presentation, Mar 1, 2024
Slide 1: 4Q 2023 Results Conference Call
ItaúChile 4Q 2023 Results Conference Call March 1, 2024 ir.itau.cl /Itaú Chile /itauchile @itauchile
Slide 2: The transformation has happened
Itaú | Conference Call 4Q23 The transformation has happened 2
Slide 3: The transformation has happened
The transformation has happened We have reduced the gap between our peers in loan mix and reciprocity… …as well improved efficiency, achieving convergence of returns Itaú | Conference Call 4Q23 with our peers Loan Mix RoTE 9,1% 24,0% 10,6% 9,6% 9,8% 10,7% 12,6% 19,7% Consumer 22,7% 23,8% 26,7% 28,0%
Slide 4: The transformation has happened: deposits and fees
The transformation has happened We have improved our position in deposits and fees… Itaú | Conference Call 4Q23 Time deposits / Fees / NIM Principality Total liabilities Is the key driver for 3rd us to make the 5th 5th 4th next step in 24.7% 17.6% 12.7% 14.3% 18.3% 17.5% improving 12.0% 11.7% return
Slide 5: Customer Centricity
Customer Centricity Broad base improvement in customer journey and functionalities Itaú | Conference Call 4Q23 leading to leadership in NPS Client Satisfaction (NPS)1 RETAIL PYME COMPANIES CORPORATIONS 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 1st 1st 1st 1st 2nd 2nd 2nd 2nd 3th 3t
Slide 6: Digital
Digital We have transitioned into a … offering better digital products and Itaú | Conference Call 4Q23 more digital bank… serving the needs of our clients… IT Architecture • From 4 to 2 Data Centers Digital Channels enabling digital transformation • Decoupled architecture • Customer fail interaction
Slide 7: Culture: Ethics are non-negotiable
Ethics are Culture non-negotiable Our culture guides us towards the strategic transformation, We put the Itaú | Conference Call 4Q23 to become a more agile and inclusive organization client first Innovative organization As diverse as our clients ▪ Agile at scale with 21 agile communities, 16 CoEs an
Slide 8: Brand
Brand Itaú | Conference Call 4Q23 We celebrate our capacity of transforming ourselves with and for our clients We are sponsoring the most important sport tournament in Chile Itaú Campeonato Nacional de Fútbol Itaú 2024 - 2025 8
Slide 9: Product, Insurance, Investments
Product Insurance Investments Capabilities Comprehensive insurance offering Accelerating AUM growth through partnership with Cardif AUM1 Itaú | Conference Call 4Q23 Itaú System Leveraging 12m trailing growth 43.2% our regional footprint to -7.8% 22.3% serve our customers Totally -22.4% needs customi
Slide 10: Efficiency
Efficiency We are gaining Itaú | Conference Call 4Q23 5th • Sustained expense growth below inflation 50.2% 3rd scale, converging our efficiency • Efficiency ratio improved to 3rd 42.4% 44.2% place among the peer group in the 42.9% 3rd last 3 years ratios with our 40.5% 42.5% main competitors 12M21 1
Slide 11: Sustainability
Sustainability Our climate & decarbonization commitment Supporting Chile’s social development Itaú | Conference Call 4Q23 Employability Financial Supporting disaster We are committed to be a net zero emissions empowerment relief & charities bank by 2050 Itaú Foundation focus on expanding access to ▪
Slide 12: Capital
Capital Itaú | Conference Call 4Q23 RoTE 8.8% 19.7% 21.8% 16.4% Chile -3.7% We have improved returns while RoTE 7.6% 15.9% 16.8% 12.9% strengthening our capital -4.1% Consolidated through a capital increase CET1 full Evolution and enhancing our capital generation 10.2% 9.7% 10.4% 7.0% 6.7% 2019 2020
Slide 13: Macroeconomic Environment
Macroeconomic Environment UF – Unidad de Fomento1 (∆ value) Slow growth in bank industry loans and deposits Itaú | Conference Call 4Q23 Quarterly (%) in an environment of high (but falling) interest 4.22% rates 3.50% 2.36% 2.47% Banking Industry Loans 2 1.32% 1.44% 1.63% (12-month growth) 0.30% 10,0
Slide 14: 4Q23 | Highlights
4Q23 | Highlights 4Q23 vs. 4Q22 change Recurring Itaú | Conference Call 4Q23 Financial margin with clients Commissions and fees Non-interest expenses Cost of credit Net Income 4Q23 Consolidated Ch$87.4 Bn 4.6 % Ch$ 354.8 billion Ch$ 47.3 billion Ch$ 202.2 billion Ch$ 106.8 billion + 8.6% - 0.4% +0.4
Slide 15: 2023 Guidance vs. Actual: Financial margin with clients
2023 Guidance vs. Actual 4Q23 | Financial margin with Clients Financial Margin with Clients: 3.5% Stable as interest rates decline ✓ Itaú | Conference Call 4Q23 Financial margin with Clients Annualized average rate Ch$ billion 6.9% 9.2% 11.2% 11.3% 11.3% 10.4% 9.1% 270.7 3.6% 3.4% 3.4% 3.4% 3.6% 253
Slide 16: 4Q23 | Financial margin with the Market
4Q23 | Financial margin with the Market Itaú | Conference Call 4Q23 Quarterly evolution UF 1 net exposure (Ch$ trillion) In Ch$ billion 44.4 39.2 0.9 1.0 0.0 0.2 26.5 47.1 19.7 -0.7 12.4 dec-22 mar-23 jun-23 sep-23 dec-23 UF – Unidad de Fomento1 (∆ value) 18.1 16.2 2.5% 12.4 1.4% 1.6% 1.3% 3.1 0.3%
Slide 17: 4Q23 | Commissions and fees
4Q23 | Commissions and fees Itaú | Conference Call 4Q23 Commissions and fees Growing in key services aligned with our In Ch$ billion principality strategy 4Q23 3Q23 4Q22 Asset Management Insurance Brokerage 9.7 9.3 4.6% 10.6 -8.3% In Ch$ billion 32.2% Credit Operations and Guarantees Provided 9.4 8.
Slide 18: 4Q23 | Cost of credit and credit quality
4Q23 | Cost of credit and credit quality 2023 Guidance vs. Actual Cost of Credit Risk: 1.2% Between 1.1% and 1.5 % ✓ Cost of credit Itaú | Conference Call 4Q23 In Ch$ billion 1.2% 1.2% 1.2% 1.5% 1.0% Coverage ratio 1.5% 1.4% 269.2 1.1% 277.3 86.6 1.0% 253.9 172% 83.0 207.2 164% 166% 76.5 156% 156% 5
Slide 19: 2023 Guidance vs. Actual: Non-interest expenses
2023 Guidance vs. Actual 4Q23 | Non-interest expenses Non-Interest Expenses: 3.2% In line with Inflation ✓ Itaú | Conference Call 4Q23 In Ch$ billion 4Q23 3Q23 4Q22 4.1% Headcount Personnel (65.1) (62.5) (74.8) -13.0% Total HC -9.9% (71.2) (56.4) 26.3% (68.6) 3.8% -6.6% Administrative Total Personne
Slide 20: 2023 Guidance vs. Actual: Loan growth
2023 Guidance vs. Actual 4Q23 | Highlights Loan Growth: 0.9% Mid Single Digit Growth (%) | 12-month Itaú | Conference Call 4Q23 Although our total loan growth was slower than the market, we increase our share in key Total Loans 1.5% System 3.4% products in line with our We have growth in the consume
Slide 21: 4Q23 | Colombia
4Q23 | Colombia Resilient operation during macroeconomic Strategy 2024 Itaú | Conference Call 4Q23 downturn Focus on creating value through a Capital ratios Consolidated sustainable RoE improvement based on: 15,2% 13,9% 14,0% 13,9% 14,5% Wholesale 12,6% 11,8% 11,9% 12,0% 12,0% ▪ Leveraging Itau´s st
Slide 22: 4Q23 | Solvency & Liquidity Ratios
4Q23 | Solvency & Liquidity Ratios BIS III: Transition CET1 capital ratio Itaú | Conference Call 4Q23 Information on peers and Itaú Chile as of dec’23 168 bps 4 bps 59 bps 4 bps 44 bps 6 bps Increase in CET1 ratio Top 3 in CET1 capital ratio, 13.7% second largest increase and 11.1% 11.1% 11.1% 10.7%
Slide 23: Macroeconomic Outlook
Macroeconomic Outlook Itaú | Conference Call 4Q23 Chile & Colombia 2023 2024(e) 2023 2024(e) GDP -0.2% 1.7% 0.6% 1.2% Inflation 3.9% 2.8% 9.3% 4.8% MPR 8.25% 4.5% 13.0% 8.0% 23
Slide 24: Guidance 2024
Guidance 2024 Itaú | Conference Call 4Q23 Expected Guidance 2024 Financial Margin with Clients Stable as interest rates average rate decline Loan Growth Mid single digit Cost of Credit Risk1 Between 1.1% - 1.5% Non-interest expenses Below inflation 1Net provision for credit & counterparty risks divi
Slide 25: Key Messages
Key Messages Itaú | Conference Call 4Q23 • Over the last three years, we transformed our operations across the key dimensions of customer centricity, technology, organization and culture, improving returns and financial strength as well as achieving leadership in NPS • The next step in our journey i
Slide 26: Disclaimers
Disclaimers This presentation is not an offer for sale of securities. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment, legal, Itaú | Conference Call
Slide 27: ir.itau.cl /Itaú Chile /itauchile
ir.itau.cl /Itaú Chile /itauchile @itauchile