Banco de Chile · BCS:CHILE
Banco de Chile — Q1 2016 Earnings Presentation
11 slides from Banco de Chile's earnings presentation, May 2, 2016
Slide 1: Financial Results Q1 2016
Financial Results May 2nd, 2016 Banco de Chile Q1|16
Slide 2: Economy: Persistent below trend growth
Economy Persistent below trend growth GDP IMF Forecasts (YoY %) (%) 6 5.5 Expected 2016 Growth - WEO Reports 4.2 4 apr/2015 oct/2015 apr/2016 World 3.8 3.6 3.2 1.9 2.1 2 1.8 Advanced Economies 2.4 2.2 1.9 Emerging Markets 4.7 4.5 4.1 Chile 3.3 2.5 1.5 0 2012 2013 2014 2015 2016e Wage Bill & Retail S
Slide 3: Economy: Inflation led by exchange rate
Economy Inflation led by exchange rate Copper & Exchange Rate Tradable & Non Tradable CPI (CLP/USD and USD/lb, respectively) (YoY %) 750 4.0 8 CLP Copper (right) Tradables Non Tradables 700 3.5 6 650 3.0 4 600 2.5 2 550 500 2.0 0 450 1.5 -2 abr-13 abr-14 abr-15 abr-16 feb-13 feb-14 feb-15 feb-16 Cur
Slide 4: Banco de Chile maintains leadership in net income
1Q16 BCH Results Banco de Chile maintains leadership in net income Quarterly Net Income & ROAE Net Income (In billions of CLP, %) (Market share in %, as of March 2016) 13.5% +2.8% 168 27.9% 134 140 133 25.1% 25.2% 25.0% 25.6% 117 26% #1 #1 #1 #1 #1 20% 21% 19% 18% 1Q 2Q 3Q 4Q 1Q 1Q15 2Q15 3Q15 4Q15
Slide 5: Strong growth in key business segments
1Q16 BCH Results Strong growth in key business segments Total Loans Loan Growth (In billions of CLP) (In billions of CLP, %) 24,499 21,883 1Q16 YoY Retail 13,788 15.3% • Mortgage 6,501 17.9% • Commercial 3,521 14.3% 1Q15 1Q16 • Consumer: Middle & Upper Income 3,058 14.7% Demand Deposits • Consumer:
Slide 6: Slowing system loan growth in line with economic trends
1Q16 BCH Results Slowing system loan growth in line with economic trends Total Loans Commercial Loans (Quarterly Loan Growth, Nominal) System BCH 7.1% 6.0% 4.0% 4.4% 3.5% 3.4% 2.9% 2.4% 2.2% 1.9% 2.1% 1.0% 0.7% 0.4% 0.0% 0.2% -0.2% -0.3% -0.9% -1.7% 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 7: Strong focus on recovering lending spreads and non-lending revenues
1Q16 BCH Results Strong focus on recovering lending spreads and non-lending revenues Non-lending Revenues/Lending Revenues2 (Times) Quarterly Operating Income1 1.16 (In billions of CLP) 1.00 7.7% 419 432 415 411 YoY 381 1Q15 1Q16 119 127 98 97 15.6% 84 Loan Spread Evolution 72 74 77 83 77 7.4% (Over
Slide 8: Flat loan loss provisions despite weaker economic scenario
1Q16 BCH Results Flat loan loss provisions despite weaker economic scenario Quarterly Loan Loss Provisions (In billions of CLP and LLP ratio in %) 104 31 74 Non-performing Loans 65 59 73 65 (NPLs / Total Loans, Individual basis, as of March 2016) 1.8% 1.2% 1.1% 1.2% 1.1% 2.5% 1Q15 2Q15 3Q15 4Q15 1Q1
Slide 9: Focus on process optimization and cost control
1Q16 BCH Results Focus on process optimization and cost control Operating Expenses Efficiency Ratio (In billions of CLP) (Op. Expenses/Op. Revenues, %, as of March 2016) 8.4% 186 188 194 179 173 54.7% 52.3% 92 85 89 85 82 46.9% 47.2% 94 91 94 103 105 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 10: Banco de Chile continues to lead the Industry in main business indicators
1Q16 BCH Results Banco de Chile continues to lead the Industry in main business indicators Operating Margin Loan Loss Provisions (Operating Income / Avg. Loans, as of March 2016) (LLP / Avg. Loans, as of March 2016) 2.8% 6.7% 6.5% 5.9% 4.5% 1.1% 1.2% 0.9% BCH Santander BCI CorpBanca BCH Santander BC
Slide 11: Forward-looking Information
Forward-looking Information The information contained herein incorporates by reference statements which constitute ‘‘forward-looking statements,’’ in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating p