Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q2 2021 Earnings Presentation
31 slides from Banco De Credito E Inversiones's earnings presentation, August 2021
Slide 1: Corporate Presentation 2Q 2021
Corporate Presentation 2Q 2021 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl August 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 Bci/Subsidiary Diversification as of June 2021 • Largest bank in Chile (total loans) US$79.58 bn US$50.45 bn • 3rd Largest Florida-based bank (-4.9% YoY) (-5.6% YoY) To
Slide 4: Chilean financial system
—_— Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Industrial and commerce activity by sector (%, yoy) Total loans in the banking system1 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of 727.76 (July 1st 2021) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operations
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: Delivering a sustainable value proposition to all our stakeholders
Delivering a sustainable value proposition to all our stakeholders Launching of the VALOR PYME, Program developed dedicated to empowering all Financial SMEs. Inclusion Bci Asset Management launched its new mutual fund “Bci Sustainable ESG Actions”. Environment We have promoted Impact Assessment “B”
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$mm, as of June 2021 In US$mm, as of June 2021 Other Other banks banks (12) (12) 14.2% 18.2% 14.2% 16.9% 13.8% 9.7% 13.0% 17.6% 17.9% 16.3% 14.4% 11.1% 10.5%
Slide 10: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) Source: Financial Market Commission (CMF).as of June 2021 Note: Figures are converted to US$ using an FX of USD/CLP of 727.76 (July 1st 2021) ; Include CorpBanca i
Slide 11: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE)1 Local loans market share2 (%) As of June 2021 Chile 18.23% 14.42% 14.60% 10.84% 10.15% (1.93%) +129 bps of market share Return on average assets (ROAA)1 as of June 2021 1.17% 1.18% 0.98% 0.74% 0.41% (0.13%) Source: CMF as of June 2
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, as well as a continued focus Since 2020 we have built over US$ 270 Million in additional provisions. Our loan portfolio is well diversif
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) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services Note: Includes Bci subsidiary in USA (CNB) 14
Slide 15: Financial Services: NPLs have continued to evolve positively
Financial Services: NPLs have continued to evolve positively. Total Loans (US MM$) NPL Ratio Note: Figures are converted to USD using an FX of 727.76 (July 1st 2021). 15
Slide 16: Controlling Operating Expenses
Controlling Operating Expenses Operating Expenses Expense Breakdown US$ million as of June 2021 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 the calc
Slide 17: Building a strong ecosystem strategy that reaches more than 5 million customers
Building a strong ecosystem strategy that reaches more than 5 million customers. Leveraging our digital capabilities and key payment businesses... ...to deliver differentiated Value Propositions ● Industry specific solutions ● Affiliate Marketing More clients ● Other Value Added Services Merchants I
Slide 18: We are very proud of what we have achieved so far
We are very proud of what we have achieved so far, but we know this is only the beginning ● We successfully implemented the new MAMBU core banking system ● Defined a product deployment strategy ● Enhancing the best talent in the market. ● Sound UX indicators 18
Slide 19: Balance sheet
Balance sheet CAGR US$ million (*) 2017 2018 2019 2020 2Q 2021 2Q 2020 %D 2017-2020 Cash 2,104 2,895 4,435 6,466 45.40% 5,136 5,909 -13.09% Securities 6,652 7,412 8,762 12,891 24.67% 16,018 11,658 37.39% Loans 34,188 42,016 47,352 49,328 13.00% 50,621 53,600 -5.56% Other Financial Instruments 312 84
Slide 20: Financial results
Financial results CAGR US$ million (*) 2017 2018 2019 2020 2Q 2021 2Q 2020 %D 2017-2020 Net Interest Income 1,315 1,519 1,858 2,051 15.98% 504 559 10.86% Net Service Fee Income 378 431 495 472 7.69% 109 109 0.50% Operating Income 1,693 1,950 2,353 2,523 14.23% 613 668 9.03% Other Operating Income 24
Slide 21: City National Bank of Florida
City National Bank of Florida
Slide 22: Executive Summary
Executive Summary • Strong loan production in 2021 compared to the YTD 2019; crossed $20B asset benchmark Balance • Total customer deposits increased $468MM QoQ and $4B or 31% YoY Sheet • Deferments have declined to only $84MM as of June 30th or 0.76% of total loans & leases Evolution • Asset qualit
Slide 23: Loan generation exceeding 2019 levels
We are generating loans (excluding PPP) at levels that significantly exceed 2019 levels Total Loans & Leases Loan Production QoQ increase: -$164MM -1.3% ’19 vs ’21 Total Growth: +$1.3B +74% YoY increase: -$73MM -1% ’19 vs ’21 Growth (w/o PPP): +$485MM +28% $12,503 $12,469 $12,333 $1,820 $1,898 $1,35
Slide 24: PPP fees have significantly impacted our results
PPP fees have significantly impacted our results & $36MM have yet to be recognized $2,000 $1,850 ( $197 ) $1,800 $1,653 ( $1,076 ) $1,600 $781 $1,358 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- PPP Loans 1.0 PPP forgiveness & payoffs Outstanding PPP loans PPP forgiveness & payoffs YTD PPP Loans 2.0
Slide 25: Customer deposits increased by $468MM in the quarter
Customer deposits increased by $468MM in the quarter & our deposit growth rate significantly exceeds the industry as a whole Customer Deposits Deposit Growth Rates QoQ increase: +$468MM +3% YoY increase: +$4B +31% $16,201 $16,669 $12,688 $6,152 $6,522 Non-Interest Bearing Customer Deposits $4,463 $1
Slide 26: Asset quality is strong and deferments have declined to minimal levels
Asset quality is strong and deferments have declined to minimal levels Loan Deferments ($MM) Non-Performing Loans ($000’s) $83,298 Reduced deferments from ~$3bn to $84MM as of June 30th $69,055 $47,424 Dec-19 Dec-20 Jun-21 NPL Ratio (%) 0.43% 0.78% 0.67% Past Due Ratio (%) 0.28% 0.75% 0.31% Deferral
Slide 27: Core earnings have increased by $35MM or 27% YoY
Core earnings have increased by $35MM or 27% YoY Q2 Q1 Q2 $ Var % Var $ Var % Var INCOME STATEMENT ($ millions) 2020 2021 2021 QoQ QoQ YTD 2020 YTD 2021 YoY YoY (+) Net Interest Income $110.5 $125.9 $130.9 $5.0 4.0% $215.8 $256.9 $41.1 19.0% (+) Non-Interest Income $15.7 $18.8 $18.6 -$0.1 -0.7% $33.
Slide 28: Net interest income, excluding PPP & MSLP, increased by $5.7MM
Net interest income, excluding PPP & MSLP, increased by $5.7MM or 5% QoQ Net interest income ($) Net interest margin (%) $125,932 $130,950 $50 $13,016 $110,543 $13,747 $5,005 2.80% 2.88% 2.73% 0.14% 0.13% $112,185 $117,884 $105,537 2.74% 2.74% 2.67% 2Q'20 1Q'21 2Q'21 2Q'20 -0.01% 1Q'21 2Q'21 Net Int
Slide 29: We increased non-interest income by 21% YoY
We increased non-interest income by 21% YoY (excluding swap fees) +$6.5MM Increase in deposit service charges driven by (+21.0%) re-pricing of Treasury Management Services $37.5 during Q3 2020 & impact of new PPP clients cross-sold Treasury Management Services $31.0 (≈$2.5MM annual impact) Significa
Slide 30: Closing Remarks
Closing Remarks ● Bci Pagos, secured authorization from the Financial Market Commission and started its operation this quarter, strengthening our digital payment ecosystem. ● Strong commitment of maintaining expenses controlled, slightly increasing by 0.73% YoY, well below inflation. ● We have recor
Slide 31: 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
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