Banco de Chile · BCS:CHILE

Banco de Chile — Q1 2017 Earnings Presentation

15 slides from Banco de Chile's earnings presentation, May 9, 2017

  1. Slide 1: 1Q17 Financial Results Conference Call

    1Q|17 Financial Results Conference Call May 09, 2017 Rodrigo Aravena Chief Economist, Senior VP Institutional Relations and Public Policy Pablo Mejia Head of Investor Relations Daniel Galarce Head of Financial Control

  2. Slide 2: Agenda

    Agenda 1. Overview of the Chilean Economy 2. Banco de Chile Strategy & Main Initiatives 3. Banco de Chile 1Q17 Results 2

  3. Slide 3: Chilean Economy

    Chilean Economy Chile’s Monthly GDP Contribution Headline & Core CPI (YoY, %) (YoY, %) CPI CPI core Mining Non Mining 5,0 6 4,0 5 3,0 4 2,0 3 1,0 2 0,0 -1,0 1 -2,0 0 2014 2015 2016 2017 2014 2015 2016 2017 Unemployment Rate Consumer Imports (% Labor Force) (YoY, %) Total Durable 8 40 7 20 6 0 5 -20

  4. Slide 4: Chilean Economy

    Chilean Economy GDP Unemployment (YoY, %) (%) 2,8 7,0 6,8 2,3 6,4 6,5 1,9 6,2 1,6 1,6 2014 2015 2016 2017f 2018f 2014 2015 2016 2017f 2018f CPI Monetary Policy Rate (YoY, %, end of period) (%, end of period) 4,6 4,4 3,5 3,5 3,0 3,0 2,9 3,0 2,5 2,7 2014 2015 2016 2017f 2018f 2014 2015 2016 2017f 2018

  5. Slide 5: Agenda

    Agenda 1. Overview of the Chilean Economy 2. Banco de Chile Strategy & Main Initiatives 3. Banco de Chile 1Q17 Results 5

  6. Slide 6: Strategic Focus & Initiatives

    Strategic Focus & Initiatives Main Initiatives Progress in key performance Indicators Net Promoter Score # Customers (%) (Thousands Current Account Holders)  Digital Banking 782 Customer 71 74 76 733  New CRM Platform 68 672 697 Centric  Strengthen loyalty program 2014 2015 2016 mar-17 2013 2014

  7. Slide 7: Agenda

    Agenda 1. Overview of the Chilean Economy 2. Banco de Chile Strategy & Main Initiatives 3. Banco de Chile 1Q17 Results 7

  8. Slide 8: 1Q17 Results

    1Q17 BCH Results Quarterly Net Income and ROAE Net Income (In billions of CLP, %) +6.4% (YoY) $140 bn Full year 2015 Full year 2016  Net Income: $559 Bn. ROAE  Net Income: $552 Bn. 19.1%  ROAE: 21%  ROAE: 20% -27 bps (YoY)  Inflation1: 4.1%  Inflation1: 2.8%  Corporate tax rate: 22.5%  Corpo

  9. Slide 9: Operating Income

    1Q17 BCH Operating Income Quarterly Operating Income1 Total Loans & Demand Deposits (In billions of CLP) (In trillions of CLP, %) 476 3.7% 428 420 423 +2.9% 411 24,5 25,0 25,4 0.8% 25,4 24,7 157 -9.6% 103 87 88 97 5.9% 7,9 7,6 8,3 8,3 7,9 313 319 325 333 335 +6.8% 1Q16 2Q16 3Q16 4Q16 1Q17 Total Loan

  10. Slide 10: Loans

    1Q17 BCH Loans Loans by Product Loans by Segment (In billions of CLP) (In billions of CLP) 25,408 +3.7% 25,408 +3.7% 24,499 24,499 7.086 +8.8% 6.511 +8.5% 10.930 11.864 +5.4% 3.771 3.974 2.786 3.096 +11.1% 14.218 14.349 +0.9% -3.1% 10.783 10.448 1Q16 1Q17 YoY 1Q16 1Q17 YoY Mortgage Consumer Commerci

  11. Slide 11: Credit Risk

    1Q17 BCH Credit Risk Quarterly Loan Loss Provisions Variation in LLP by Concept (In billions of CLP) (In billions of CLP) 64,8 7,0 63,1 93 6,3 87 11,9 2,7 0,3 65 65 63 1Q16 Wholesale 1Q16 Mix Retail Exchange 1Q17 Vol. & Regulatory Vol. & Rate Deter. Changes Deter. Variation in LLP by Product (In bil

  12. Slide 12: Risk – Consumer Loans

    1Q17 BCH Risk – Consumer Loans +90 Days Non-Performing Loans Charge-offs, net of recoveries (NPLs to total loans, %) (Charge-offs and recoveries to average loans, %) 2,6 2,37 5,3% 5,5% 2,2 2,13 2,10 4,1% 4,6% 4,1% 4,3% 3,8% 3,8% 1,90 1,8 - 4 bps 1,66 1,4 1,0 1Q16 2Q16 3Q16 4Q16 1Q17 BCH Santander BC

  13. Slide 13: Expenses

    1Q17 BCH Expenses Operating Expenses Quarterly Variation Expenses (In billions of CLP) (In billions of CLP and Efficiency Ratio in %) Personnel Administration & Others Personnel (-4%) Administration + Other (+3%) Dep., Amort. & Impairments. Other 206 194 198 14 191 192 5 5 4 7 +1% -26% -13% -14% -45

  14. Slide 14: Key Takeaways

    Key Takeaways It’s likely that 1Q17 marked the turning point of the negative economic cycle in Chile. GDP growth should begin to gradually converge to the potential rate. Digital banking platforms have moved from being novelties to necessities. Being a leader in digital innovation and transformation

  15. Slide 15: 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

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