Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q1 2023 Earnings Presentation
34 slides from Banco De Credito E Inversiones's earnings presentation, May 2023
Slide 1: Corporate Presentation 1Q 2023
Corporate Presentation 1Q 2023 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl May 2023
Slide 2: Bci at a glance
Bci at a glance
Slide 3: Leading financial institution in Chile by Assets and Loans
Leading financial institution in Chile by Assets and Loans Profitable and financially sound Diversified business model Bci/Subsidiary Diversification as of March 2023 • Largest bank in Chile (total loans) US$98.3 bn US$58.6 bn • 3rd Largest Florida-based bank (+11.8% YoY) (+10.2% YoY) Total assets T
Slide 4: Chilean financial system
Chilean financial system
Slide 5: Bci is part of a robust financial system
Bci is part of a robust financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Total loans in the banking system2 (US$bn) Source: CMF Note: Figures are converted to US$ using an FX of USD/CLP of 790.41 (April 3rd 2023) 1 Figures exclude CNB (City National Bank) and Itau Corpbanca operati
Slide 6: Bci Consolidated
Bci Consolidated
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 pension Board of Directors is composed by experts in various fields, academics, funds economists, bankers and individuals connected with th
Slide 8: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market Chilean banking system benchmark In US$mm, as of March 2023 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 14.2% 17.2% 14.5% 16.4% 14.4% 10.0% 13.3% 15.3% 18.8% 15.2% 14.9% 12.4% 9.6% 13.8% Commercial Consumer Mortgage Deposits1 Net income C
Slide 9: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR Consumer lending loans (US$mm) CNB Mortgage loans (US$mm) CAGR CAGR Source: Financial Market Commission (CMF). 10 Note: Figures are converted to US$ using an FX of USD/CLP of 790.41 (April 3rd 2023); Include Cor
Slide 10: Successful organic growth in Chile…
Successful organic growth in Chile… Local loans market share2 (%) Return on average Equity (ROAE)1 as of March 2023 Chile 29.96% 25.52% 17.14% 18.41% 15.91% 12.28% +40bps of market share Return on average assets (ROAA)1 as of March 2023 2.57% 1.13% 1.22% 1.05% 1.03% 1.00% Source: CMF as of March 202
Slide 11: …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 12: Risk Evolution
Risk Evolution Highlights Loan loss provisions / Average Gross Loans Bci's asset quality is supported by proactive risk management and monitoring. We have a stock of over US$ 527 Million in additional provisions. Our loan portfolio is well diversified by business lines, economic sectors, and custome
Slide 13: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) NPLs Consumer Loans excluding Financial Services 14 Note: Includes Bci subsidiary in USA (CNB) *Does not include Interbank loans
Slide 14: Financial Services: NPL's
Financial Services: NPL's 14 Figures are converted to US$ using an FX of 790.41 (April 3rd 2023)
Slide 15: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of March 2022 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 calculatio
Slide 16: Today the ecosystem is already unifying our ~5.8M customers...
Today the ecosystem is already unifying our ~5.8M customers... Launched Launching phase" More than 5.8 MM January 2023 Payment Platform ~1 MM ~4 MM ~1 MM OSS NA NA 1616
Slide 17: Balance sheet
Balance sheet CAGR US$ million (*) 2019 2020 2021* 2022* 1Q 2022* 1Q 2023* %D 2019-2022 Cash 3,990 5,817 4,628 5,385 10.51% 7,496 5,745 -23.36% Securities 7,883 11,597 21,580 25,236 47.38% 20,763 24,989 20.35% Loans 42,598 44,376 49,073 59,483 11.77% 53,186 58,633 10.24% Other Financial Instruments
Slide 18: Financial results
Financial results CAGR US$ million (*) 2019 2020 2021* 2022* 1Q 2022* 1Q 2023* %D 2018-2022 Net Interest Income 1,672 1,845 2,021 2,922 20.46% 611.2 603.2 -1.30% Net Service Fee Income 445 425 438 464 1.42% 115.5 103.1 -10.77% Other Operating Income 276 301 275 28 -53.16% 60.5 70.8 17.0% Operating I
Slide 19: City National Bank of Florida
City National Bank of Florida
Slide 20: We strengthened our liquidity position in Q1, maintained strong capital ratios, and our CRE portfolio is well managed
We strengthened our liquidity position in Q1, maintained strong capital ratios, and our CRE portfolio is well managed Client Deposits Liquidity Insured Deposits Capital Investments CRE We generated We maintained We reduced our Our CET 1 ratio 97% of our Our commercial significant client ~$12B of uni
Slide 21: Despite turmoil and deposits shrinking in the banking system, our client deposits grew significantly
Despite turmoil and deposits shrinking in the banking system, our client deposits grew significantly in Q1’23: $862MM (+5%) Client Deposits ($MM) – Excludes Brokered Deposits +$964 +$862 (+5%) (+5%) -$102 (-1%) $18,633 $18,531 $17,669 +$715MM +$147MM Growth when Growth when normalizing for normalizi
Slide 22: CNB client deposits increased significantly during the quarter while industry deposits continued to contract
CNB client deposits increased significantly during the quarter while industry deposits continued to contract, fortifying our already strong liquidity position Client Deposits ($MM) – Excludes Brokered Deposits Banking Industry - Total Deposits ($B) QoQ increase: +$862MM +4.9% QoQ decrease: -$609B -3
Slide 23: We have $11.3B of available liquidity sources representing 43% of our assets
We have $11.3B of available liquidity sources representing 43% of our assets Total liquidity sources ($B) in $B / 2023 Figures Mar 31st FHLB Max Borrowing capacity $7.5 Current utilization $2.2 We have ample liquidity FHLB available capacity $5.3 Other sources of liquidity Fed balance $0.4 Other cas
Slide 24: We leveraged ICS to increase our insured & collateralized deposits from 49% to 59%
We leveraged ICS to increase our insured & collateralized deposits from 49% to 59% QoQ, thereby reducing our uninsured and uncollateralized deposits to 41% Dec 31st, 2022 Mar 31st, 2023 Change in $MM $MM % of total $MM % of total $MM % Insured 6,600 33% 7,646 35% 1,047 16% ICS (Insured) 1,293 6% 3,2
Slide 25: We are not SVB: Our TCE ratio adjusted for HTM
We are not SVB: Our TCE ratio adjusted for HTM as of December 31st results in a strong 6.6% TCE ratio City National Bank Silicon Valley Bank As of March 31st, 2023, this figure has improved even 7.6% more to 6.9% for CNB (1.0%) 6.6% 5.6% (5.7%) Reported TCE / TA Held-to-maturity TCE / TA (0.1%) secu
Slide 26: Mark-to-market has improved $116MM (pre-tax) since December
Mark-to-market has improved $116MM (pre-tax) since December and the duration of our investment portfolio has shortened as well Dec 31st, 2022 Mar 31st, 2023 $MM Book value Fair value Unrealized G/L Book value Fair value Unrealized G/L OCI Available-for-Sale 4,566 3,856 (710) 4,812 4,174 (638) Held-t
Slide 27: Our core loans grew moderately by $408MM QoQ while maintaining our excellent asset quality
Our core loans grew moderately by $408MM QoQ while maintaining our excellent asset quality Total Assets ($MM) Total Loans & Leases ($MM) QoQ increase: +$986MM +3.9% QoQ increase (ex. PPP): +$408MM +2.5% $16,541 $16,917 $25,218 $26,204 $100 $68 PPP Loans $16,441 $16,849 Total Loans (ex. PPP) 4Q’22 1Q
Slide 28: Our loan portfolio is diversified with real estate secured loans at a low weighted average LTV of 52%
Our loan portfolio is diversified with real estate secured loans at a low weighted average LTV of 52% % of Weighted % of Total % of CRE Weighted Loan Breakdown as of 3/31/2023 $ Amount ($k) CRE Breakdown as of 3/31/2023 $ Amount ($k) Loans & Portfolio Avg LTVs Portfolio Leases Avg LTVs Shopping Cent
Slide 29: Retail is the largest category within CRE and is diversified by collateral type and geography
Retail is the largest category within CRE and is diversified by collateral type and by geography CRE Retail by Collateral Type CRE Retail by Geography Single Non-Credit Tenant 5% Single Tenant Outside FL 17% 27% Miami-Dade Anchored 34% 39% Shadow Anchored 1% Retail Retail Outstanding Outstanding $2,
Slide 30: Our office CRE segment is focused on Class A&B properties & is well diversified throughout Florida
Similarly, our office CRE segment is focused on Class A&B properties & is well diversified throughout Florida Office by Collateral Type Office by Geography Outside FL Medical Office 11% 17% Other FL Single Non-Credit Tenant 8% Single Credit Tenant Commercial Condo 2% 0% Tampa 4% 1% Office Office 48%
Slide 31: Operating income in Q1 was $1.2MM (1%) higher than 2022
Operating income in Q1 was $1.2MM (1%) higher than 2022 $ Var % Var $ Var % Var INCOME STATEMENT ($ millions) 1Q'22 4Q'22 1Q'23 QoQ QoQ YoY YoY (+) Net Interest Income $143.2 $158.6 $144.8 -$13.8 -8.7% $1.6 1.1% (+) Non-Interest Income $22.1 $25.1 $21.8 -$3.3 -13.2% -$0.3 -1.5% (=) Operating Income
Slide 32: Net interest income in Q1'23, excluding PPP & MSLP, increased $7MM (5%)
Net interest income in Q1’23, excluding PPP & MSLP, increased $7MM (5%) vs the same quarter of last year Net interest income ($k) Net interest margin (%) $158,557 2.81 $1,083 2.70 $143,196 $144,753 0.09 0.02 $1,164 2.43 $7,043 0.03 PPP/MSLP Impact PPP & MSLP fees $157,474 2.72 2.69 $136,153 $143,589
Slide 33: Conclusions and outlook
Conclusions and outlook While deposits in the industry shrank and deposits migrated from regional/community banks to the largest US banks, our deposits grew $862MM (20% annualized growth rate) Our already strong liquidity and capital position improved across the board in Q1-2023 Conclusions Ou
Slide 34: 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
Banco de Crédito e Inversiones (Bci) — Q1 2023 Earnings Presentation on 6ix