Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q4 2024 Earnings Presentation
29 slides from Banco De Credito E Inversiones's earnings presentation, February 2025
Slide 1: 4Q 2024 Corporate Presentation
4Q 2024 Corporate Presentation Investor Relations Department | Investor_Relations_Bci@Bci.cl February 2025
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 December 2024 • Largest bank in Chile (total loans) • 3rd Largest Florida-based bank US$ 83.7bn US$ 57.8bn (7.29 YoY) (+10.8% YoY) Total Assets
Slide 4: Key Highlights of 2024
Key Highlights of 2024 • Total loans: +10,80% YoY, driven by mortgage and commercial growth. • Deposits shifts: +15% increase in demand deposits, reducing cost of funds. Balance Sheet • FCIC Exit: successfully repaid in 2024 maintaining our balance sheet strong and wellsupported by diversified fundi
Slide 5: Chilean financial system
Chilean financial system
Slide 6: Bci is part of a robust and highly regulated financial system
Bci is part of a robust and highly regulated financial system CHILE. Quarterly GDP growth and forecast (%, YoY) Banking system capitalization ratio (Basel III) Total loans in the banking system (US$bn) 2 Chilean banking regulation – upgrading to Basel III CET1 capital declined by 7 basis points year
Slide 7: Bci Consolidated
Bci Consolidated
Slide 8: 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 funds Board of Directors is composed by experts in various fields, academics, economists, bankers and 10.09% individuals connected
Slide 9: MACH | We continue our journey towards a Digital Bank
MACH | We continue our journey towards a Digital 2024 Highlights Bank, launching our new credit card under a new brand +820K MACHBank Checking Accounts 4.2M* +111% YoY 3.3M* 1.7M* Payments On-Us Checking Account Credit Card VISA +US$105 MM 8x Physical VISA CARD Top-Up Services Debit Card Visa Remitt
Slide 10: Bci maintains a relevant position in the market
Bci maintains a relevant position in the market % Market share in Chilean banking system Chilean banking system benchmark In US$mm, as of December 2024 Loan breakdown1 Assets1 Other Other banks banks (12) (12) 15.0% 16.9% 15.2% 16.2% 13.4% 9.6% 13.8% 15.4% 18.7% 15.8% 14.3% 12.2% 9.8% 13.8% Commerci
Slide 11: Loan growth evolution
Loan growth evolution Total loans (US$mm) Commercial & Interbank loans (US$mm) CAGR CAGR Consumer lending loans (US$mm) Mortgage loans (US$mm) CAGR CAGR Source: Financial Market Commission (CMF). Note: Figures are converted to US$ using an FX of USD/CLP of 996.46 (January 2nd 2025); Including the su
Slide 12: Successful organic growth in Chile…
Successful organic growth in Chile… Return on average Equity (ROAE) 1 Local loans market share (%) 2 as of December 2024 Chile 22,48% 19,80% 14,10% 12,21% 12,38% 9,74% +81 bps of market share Return on average assets (ROAA)1 as of December 2024 2,24% 1,25% 0,98% 1,02% 0,88% 0,87% Source: CMF as of D
Slide 13: …with diversified and funding cost
…with diversified and funding cost In terms of maturity, currency and geography Funding Sources Breakdown by type 1 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 Francs
Slide 14: Risk Evolution
Risk Evolution Highlights Loan loss provisions / Average Gross Loans 4,1% Bci's asset quality is supported by proactive risk management and monitoring. 3,76% We have a stock of over US$ 270 Million in additional provisions. 3,6% 3,64% 3,47% Our loan portfolio is well diversified by business lines, e
Slide 15: Evolution of NPL's
Evolution of NPL's NPL Ratio (NPLs/Total Loans)* NPL Ratio (Commercial Loans) 1,59% 1,33% 1,32% 1,18% 1,18% 1,23% 1,17% 1,08% 0,84% 0,85% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 NPL Ratio (Consumer Loans) NPL Ratio (Mortgage Loans) 3,27% 3,03% 2,07% 2,51% 2,00% 1,17% 2,41% 2,16% NPLs 0,87%
Slide 16: Financial Services: NPL's
Financial Services: NPL's Figures are converted to US$ using an FX of USD/CLP of 996.46 (January 2nd 2025)
Slide 17: Operating Expenses
Operating Expenses Operating Expense (YTD) Expense Breakdown US$ million as of December 2024 1,308 1,342 2.6% 11 16 25% 1.028 1.021 52% 269 305 23% 2023 2024 CNB BCI Local Peru Human Resources Technology Other Efficiency Ratio* 51,7% -284bp 48,9% 47,9% 47,2% 45,0% 2020 2021 2022 2023 2024 * Efficien
Slide 18: Balance sheet
Balance sheet US$ million (*) 2020 2021 2022 2023 2024 YoY CAGR 2020-2024 Cash 4,757 4,628 4,404 3,745 3,650 -2.56% -6.41% Securities 9,484 21,580 20,639 18,707 17,793 -4.88% 17.03% Loans 36,293 49,073 48,648 51,887 57,491 10.80% 12.19% Other Financial Instruments 68 158 325 334 262 -21.35% 40.36% I
Slide 19: Financial results
Financial results CAGR US$ million (*) 2020 2021* 2022* 2023* 2024 YoY 2020-2024 Net Interest Income 1,509 1,653 2,390 2,091 2,325 11.18% 11.41% Net Service Fee Income 347 359 380 353 413 17.04% 4.41% Other Operating Income 246 225 23 164 94 -42.6% -21.43% Operating Income 1,856 2,012 2,793 2,608 2,
Slide 20: City National Bank of Florida
Ci National Bank
Slide 21: We continue to expand our NIM, strengthen our liquidity position, increase our capital ratios
We continue to expand our NIM, strengthen our liquidity position, increase our capital ratios and our CRE portfolio is well managed Client Deposits Liquidity NIM Capital Investments CRE Client deposits We maintained ~$9B NIM increased 26 Our CET 1 ratio 99% of our Our commercial real increased $321M
Slide 22: Normalizing the outflow from one large public depositor, client deposits grew 5% in 2024
Normalizing the outflow from one large public depositor, client deposits grew 5% in 2024, outperforming the banking industry, which grew 2% (including the impact of brokered deposits) Total Deposits ($MM) Banking Industry - Total Deposits ($B) Client Deposits QoQ change: ($71MM) -0.4% Client Deposit
Slide 23: Total loans grew 4% in 2024 while maintaining our strong asset quality
Total loans grew 4% in 2024 while maintaining our strong asset quality (past due and nonaccrual ratios <1%) Total Assets ($MM) Total Loans & Leases ($MM) Core Loans QoQ change: +$286MM +1.6% +$352 Core Loans YoY change: +$799MM +4.6% Non-owner (+1%) occupied CRE represents 48% $26.480 +$775 $26.128
Slide 24: CRE loans are well diversified across various property types with low LTVs (49%)
CRE loans are well diversified across various property types with low LTVs (49%), strong DSCR (1.7x) and excellent asset quality and ACL ratios CRE by Property Type % % Full & Commitment % Balance % WAvg WAvg % Accr Non- % In Partial Reserve Property Type ($M) Total ($M) Total % of RBC LTV % DSCR %
Slide 25: Normalizing for significant one-timers in 2024, net income would be $149MM
Normalizing for significant one-timers in 2024, net income would be $149MM in 2024 with an ROA close to 60bps and ROE of ~6% Normalized net income after taxes ($MM, FY 2024, All normalized items are presented net of taxes) +$61 (+69%) $149 $8 ($1) $5 $50 $88 Net income Investment BOLI restructure St
Slide 26: Net interest income increased ~13% QoQ and ~4% YoY
Net interest income increased ~13% QoQ and ~4% YoY $ Var % Var FY FY % Var INCOME STATEMENT ($ millions) Q4 2023 Q3 2024 Q4 2024 $ Var YoY QoQ QoQ 2023 2024 YoY (+) Net Interest Income $113.5 $132.4 $149.3 $16.8 12.7% $500.6 $518.7 $18.0 3.6% (+) Non-Interest Income $22.7 $28.4 $25.6 -$2.8 -9.9% $91
Slide 27: Both our net interest income and margin increased for the fourth consecutive quarter
Both our net interest income and margin increased for the fourth consecutive quarter. Our quarterly NIM expanded 54bps when comparing Q4-24 vs Q4-23 Net interest income ($MM) Net Interest Margin (%) In December alone, +$16.8 NIM reached 2.44% +$13.2 (+13%) +54bps +$4.1 +$1.6 (+11%) +0.26 $149,3 (+4%
Slide 28: Earnings are in an upward trajectory, which positions us for an even better 2025
Earnings are in an upward trajectory, which positions us for an even better 2025 Quarterly normalized net income after taxes and ROA ($MM, %) Normalized ROA (%) Normalized net income after taxes ($) 2024 FY = $149MM 1,4 (ROA = 0.57%) 50 $47 1,3 45 1,2 40 1,1 $36 $35 1,0 35 $32 0,9 30 0,8 25 0,7 0,70
Slide 29: 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) — Q4 2024 Earnings Presentation on 6ix