Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — FY2018 Earnings Presentation
38 slides from Banco De Credito E Inversiones's earnings presentation, February 2019
Slide 1: Corporate Presentation 2018
Corporate Presentation 2018 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl February 2019
Slide 2: Contents
Contents. Main macroeconomic indicators Chilean financial system Banco de Crédito e Inversiones City National Bank of Florida Bci Investor Relations November 2018
Slide 3: Main macroeconomic indicators
Bci Investor Relations Main macroeconomic indicators
Slide 4: GDP Growth Projections (2018-2019)
GDP Growth Projections (2018-2019) 4.5 4.0 3.5 3.0 2.5 PIB año 2019 PIB año 2018 2.0 Source: Chilean Central Bank, BCI Research. 4
Slide 5: Macroeconomic Indicators
Macroeconomic Indicators Monthly Economic Growth 8 (% yoy) Mining Non Mining Imacec 6 4 2 0 -2 -4 70 Economic Sentiment Index (pts) 65 60 55 50 45 40 Economic Expectations, Next 12M 35 Business Confidence 30 2010 2011 2012 2013 2014 2015 2016 2017 2018 5 Source: Chilean Central Bank, BCI Research.
Slide 6: Chilean financial system
Bci Investor Relations Chilean financial system
Slide 7: Financial System
Financial System Strong growth over the years (US$ Million) Total Loans (*) Commercial & Interbank Loans (*) 5.2% 7.6% 257,032 145,494 129,777 131,630 125,114 227,297 217,952 206,510 13.1% 10.5% 2015 2016 2017 2018 2015 2016 2017 2018 Consumer Loans (*) Mortgage Loans (*) 10.6% 37,124 10.2% 72,184 3
Slide 8: Banco de Crédito e Inversiones
Bci Investor Relations Banco de Crédito e Inversiones
Slide 9: Shareholders and corporate governance
Shareholders and corporate governance Shareholder structure as of Dec 2018 Since Luis Enrique Yarur Rey (President) 1991 Shareholder José Pablo Arellano Marín 2011 Float Mario Gómez Dubravcic 2011 Agreement 27.10% Board of 63.36% Lionel Olavarría Leyton (Vice President) 2015 Directors Claudia Manuel
Slide 10: Bci Highlights - Profitable and financially sound
Bci Highlights - Profitable and financially sound Dec’18 Market Share Local M.S. in US$ Million (*) Dec’18 Dec’18 Total Assets $ 59,517 Total Loans $ 43,804 17.04% 13.95% Net Income $ 570 16.53% Market Capitalization $ 8,818 Tier I BIS ratio Capital Ratios 10.14% 12.76% Moody's S&P Fitch Internation
Slide 11: Corporate Strategy
Corporate Strategy Strategic Priorities 11 22 3 3 Leverage digital customer Drive sustainable Enhance leadership and experience to achieve growth, while maintaining collaboration throughout the competitive advantage prudent risk organization 11
Slide 12: Strategy Execution
Strategy Execution ▪ Leverage digital customer experience and superior analytics to achieve deeper relationships and Best-in-Class Customer higher revenues per client, with focus on Retail and SMEs Experience through Digital Transformation ▪ Strategy-driven IT transformation to reduce cost-to serve,
Slide 13: Market shares
Market shares 3rd largest privately owned bank in Chile Total Assets Total Loans 16.79% 17.04% Bci Bci 14.59% Bank 1 Others 15.85% Bank 1 Others 63.61% 63.63% 36.39% 36.37% Bank 2 Bank 2 15.92% 16.96% Bank 3 Bank 3 16.33% 13.76% Non Interest Bearing Deposits (NIBD) Net Income 16.53% 23.83% Bci Bci O
Slide 14: Loan portfolio
Loan portfolio Bci has outperformed the financial system in Total Loans during 2015-2018 (US$ Million) CNB BCI Total Loans Commercial & Interbank Loans 14.4% 2018 23.2% 13.1% 27,884 21.4% 2017 10,351 2016 21,451 22,976 2015 6,382 8,096 19,296 5,198 5,360 4,157 4,171 3,167 7.6% 5.2% 13.1% 10.5% 2015
Slide 15: Loan portfolio Bci
Loan portfolio Bci Well diversified and balanced loan portfolio Retail CIB Finance SMEs Wholesale Banking Division Individuals Revenues < UF 80,000 Revenues > UF 80,000 (up to US$3.1 M*) (up to US$ 58.6 million*) 57.70% 47.95% 41.03% 29.72% 8.85% 9.95% 2.16% 2.63% Loans by Segment Operating Income Y
Slide 16: Risk indicators
Risk indicators Conservative risk management policies Risk Index Total Loans Risk Index Commercial Loans Allowances/ Total Loans (Bci) Commercial Allowances/ Commercial Loans (Bci) Allowances/ Total Loans (Financial System) Commercial Allowances/ Commercial Loans (Financial System) 3.01% 2.98% 2.90%
Slide 17: Conservative risk management policies
Conservative risk management policies NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial Loans) Bci Financial System Bci Financial System 1.86% 1.93% 1.90% 1.85% 1.70% 1.65% 1.47% 1.46% 1.47% 1.42% 1.49% 1.48% 1.42% 1.40% 1.40% 1.36% 2015 2016 2017 2018 2015 2016 2017 2018 NPL Ratio (Consumer Loans)
Slide 18: Strong time deposit growth with retail customer base
Strong time deposit growth with retail customer base Non interest bearing deposits & time deposits (US$ million) 14.9% 9.8% 28.2% 17,592 13,723 11,583 11,794 Non Interest Bearing Deposits 15,390 15.3% 17,745 Time Deposits 13,388 14,332 2015 2016 2017 2018 Breakdown by type Funding Other Liabilities
Slide 19: Profitability
Profitability NIM (*) (Net Interest Margin/ Average Interest Earning Assets) 4.00% 3.61% 3.62% 3.61% 3.93% 3.59% 3.36% 3.31% 2015 2016 2017 2018 Bci Banking Sector Efficiency ratio (**) Fee income ratio (Net Fees/ Net Fees + Net Interest Margin) 23.08% 24. 00% 51.6% 22.64% 22.33% 50.7% 50.7% 23. 00%
Slide 20: Profitability
Profitability Profitable growth Net Income and Market Share (US$ Million) 6.2% 570 20.00% 16.6% 580 560 540 17.3% 15.00% Net Income 16.5% 15.0% 535 520 500 Market 10.00%Share YTD 480 6.6% 490 5.00% 476 460 440 420 .00% 2015 2016 2017 2018 ROAA (*) ROAE (*) 1.32% 17.5% 1.14% 1.15% 1.05% 1.15% 14.7% 1
Slide 21: Capitalization
Capitalization Bci capitalization well above regulatory requirements 13.41% 13.20% 12.76% 11.98% Regulatory Capital / Consolidated Risk weighted assets Basic Capital / Total Assets 7.55% 7.55% 7.73% Required by Sbif (8%) 6.32% Required by Sbif (3%) 2015 2016 2017 2018 Bis Ratio 13.41% 13.20% 12.76%
Slide 22: City National Bank of Florida
Bci Investor Relations City National Bank of Florida
Slide 23: City National Bank 2018 – Q-4 Highlights
City National Bank 2018 – Q-4 Highlights Drivers for Organic Growth: • Focus on Regulatory Excellence • Asset portfolio continues to maintain its quality • Sustained balance sheet growth and profitability • Business Lines and Geographic Diversification • Focus on Human capital • Acquisition Highligh
Slide 24: Financial Highlights
Financial Highlights • Total Assets increased by $374 MM in the quarter & increased by $4.2 BN YoY to $14.33 BN, $2 BN of which is due to the TotalBank acquisition • Total Net Loans & Leases increased by $78 MM in the quarter & $3 BN YoY to Balance Sheet $10.1 BN, despite $113MM of loan sales during
Slide 25: CNB at a Glance
CNB at a Glance Revenue Breakdown as of December 31, 2018 (YTD) Balance Sheet as of December 31, 2018 Assets Liabilities & Equity In US$ M $14,326 $14,326 2% 1% 2% Gross Credit Portfolio Composition as of December 31, 2018 Funding Structure and Deposits as of December 31, 2018 Source: City National
Slide 26: Balance Sheet Consolidated
Balance Sheet Consolidated Of Of Of Of Dec-17 Sep-18 Dec-18 Var QoQ Which Which Var QoQ Var YoY Which Which Var YoY BALANCE SHEET ($ millions) CNB TB CNB TB Commercial & Industrial $1,699 $2,055 $2,041 ($14) $17 ($31) -0.7% $341 $188 $154 20.1% Commercial Mortgages $2,939 $4,511 $4,518 $7 $34 ($26)
Slide 27: QoQ Loan & Deposit Evolution
QoQ Loan & Deposit Evolution Loan Composition as of September 30, 2018 (YTD) Loan Composition as of December 31, 2018 (YTD) Deposit Composition as of September 30, 2018 (YTD) Deposit Composition as of December 31, 2018 (YTD) Source: City National Bank 27 Note: Commercial Real Estate includes Owner-O
Slide 28: Financial Highlights: Sustained and Stable Growth
Financial Highlights: Sustained and Stable Growth Net Loans (US$BN) as of December 31 2018 Deposits (US$BN) as of December 31, 2018 TotalBank ($1.9) TotalBank ($1.9) ‘15-’18 ‘15-’18 CAGR: 26% CAGR: 28% Tier 1 Capital (US$MM) as of December 31, 2018 *Net Income (US$MM) as of December 31, 2018 2018 -
Slide 29: Consolidated Income Statement
Consolidated Income Statement 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD INCOME STATEMENT ($ millions) 2017 2018 2018 2018 2018 Var QoQ 2017 2018 Var YoY (+) Net Interest Income $68.9 $72.6 $80.1 $101.5 $100.9 -0.7% $253.0 $355.1 40.4% (+) Non-Interest Income $11.0 $9.1 $11.0 $11.0 $12.2 11.2%
Slide 30: Normalized net income improves ROA by 40 bps
Normalized net income improves ROA by 40 bps Source: City National Bank 30
Slide 31: Profitability ratios remain ahead of budget despite non-recurring expenses
Profitability ratios remain ahead of budget despite non-recurring expenses ROAA NIM ROA & ROE display an increasing trend on a normalized basis NIM is relatively flat year-over-year despite ROE Efficiency Ratio flattening yield curve environment The normalized efficiency ratio of 45% remains a stren
Slide 32: Key Metrics
Key Metrics Source: City National Bank 32
Slide 33: Florida Banking Sector
Florida Banking Sector Assets – Florida based banks (as of Sept 2018)1 Deposit Market Share – State of Florida1 Total Total Market Total Rank² Active Deposits² Share² Assets All FL Institution Name City, State Branches (US$ M) (%) Rank Institution Name City, State ($mm) 1 - Bank of America NA Charlo
Slide 34: Thank you.
This presentation contains forward-looking statements in various places throughout therein, related to, without limitation, our future business development. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend
Slide 35: Balance sheet
Balance sheet CAGR US$ million (*) 2015 2016 2017 2018 2015-2018 Cash 1,832 2,271 2,153 2,963 17.39% Securities 5,335 5,460 6,808 7,586 12.45% Loans 28,700 31,921 34,989 43,001 14.43% Other Financial Instruments 379 438 320 86 -39.07% Fixed Assets 407 402 389 405 -0.16% Other Assets 4,760 4,034 4,11
Slide 36: Balance sheet
Balance sheet CAGR CLP$ million (*) 2015 2016 2017 2018 2015-2018 Cash 1,272,552 1,577,565 1,495,732 2,058,757 17.39% Securities 3,706,721 3,793,351 4,730,198 5,270,611 12.45% Loans 19,939,945 22,177,574 24,309,484 29,876,007 14.43% Other Financial Instruments 263,561 304,533 222,030 59,624 -39.07%
Slide 37: Financial results
Financial results CAGR US$ million (*) 2015 2016 2017 2018 2015-2018 Net Interest Income 1,152 1,303 1,346 1,555 10.33% Net Service Fee Income 337 391 387 441 12.53% Operating Income 1,489 1,694 1,732 1,995 10.81% Other Operating Income 187 160 273 305 15.58% Provision for loan losses -345 -329 -376
Slide 38: Financial results
Financial results CAGR CLP$ million (*) 2015 2016 2017 2018 2015-2018 Net Interest Income 800,506 905,053 934,828 1,080,197 12.04% Net Service Fee Income 234,270 271,629 268,706 306,203 13.00% Operating Income 1,034,776 1,176,682 1,203,534 1,386,400 12.25% Other Operating Income 129,774 111,205 189,
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