INVESTORS REPORT FIRST QUARTER, 2018

Transcription

1 INVESTORS REPORT FIRST QUARTER, of 26

2 COSTA RICA: ECONOMIC ACTIVITY IMAE (1) (QoQ variation annualized, %) Balance of Payments (last year, million USD) 4,000 3, , , , I-2017 II-2017 III-2017 IV-2017 I-2018 Total Ex ZF -2,000-3,000 I-2017 II-2017 III-2017 IV-2017 Current account Goods an services Financial account FDI (1) IMAE stands for Índice Mensual de Actividad Económica, it is a gauge of economic activity computed by the Central Bank 2 of 26

3 COSTA RICA: INFLATION AND UNEMPLOYMENT Consumer Price index (CPI) Unemployment I-2017 II-2017 III-2017 IV-2017 I-2018 QoQ (annualized) YoY I-2017 II-2017 III-2017 IV-2017 I-2018 Source: Banco Central de Costa Rica e Instituto Nacional de Estadística y Censos (INEC) 3 of 26

4 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 COSTA RICA: FISCAL PERFORMANCE Central government: revenues and expenditures ( last year, million CRC) Central Government Deficit / GDP (%) 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Mar-17 Central Government Debt/ GDP (%) 6.0 Mar-18-10,000, ,000, CG revenues CG expenditures Result 0.0 Mar-17 Internal Debt Mar-18 External Debt Source: Costa Rica Ministry of Finance 4 of 26

5 COSTA RICA: INTEREST AND EXCHANGE RATES Tasa básica pasiva Average exchange rate USDCRC (Monex) Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Source: Banco Central de Costa Rica Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 5 of 26

6 BANK SYSTEM: CREDIT (GROSS) Quarterly growth (1Q 2018) Year growth (1Q 2018) System 0.0 System 6.2 Private banks -0.8 Private banks 6.6 Government banks (exbncr) -0.7 Government banks (exbncr) -5.6 Special purpose 0.3 Special purpose 11.7 Cooperatives and mutuals 2.4 Cooperatives and mutuals 11.4 Other 5.4 Other 20.1 BNCR -0.8 BNCR of 26

7 BANK SYSTEM: DEPOSITS Quarterly growth (1Q 2018) Year growth (1Q 2018) System 0.2 System 4.4 Private banks -0.8 Private banks 5.7 Government banks (exbncr) -1.3 Government banks (exbncr)-8.1 Special purpose 1.6 Special purpose 20.6 Cooperatives and mutuals 1.5 Cooperatives and mutuals 7.9 Other 6.6 Other 16.7 BNCR 1.3 BNCR of 26

8 CORPORATE GOVERNANCE Governance Structure Independent Board of Directors Board of Directors Chairman Ana Isabel Solano Vice-chairman Víctor Hugo Carranza Salazar Secretary Luis Pal Hagedüs Directors Ana Cecilia Rodríguez Quesada Olman Briceño Fallas Jorge Mendez Zamora Jeannette Ruiz Delgado Internal and external independent auditors 100% independent Appointed by the Counsel of Ministers. 8-year term. Every 4 years, 3 or 4 members change. Chief Executive Officer Juan Carlos Corrales Salas Officers and Support Committees 8 of 26

9 CORPORATE GOVERNANCE (CONT.) BANCO NACIONAL DE COSTA RICA Assets (March-18) BN Valores (Brokerage) BN Vital (Pensions) BN SFl (Mutual funds) BN Seguros (Insurance brokerage) BN Vital; 0.1 BN SAFI; 0.1 BN Seguros; 0.0 BICSA; 12.2 Equity (March-18) BN Valores; 0.7 BNCR; 86.9 BN Vital; 0.8 BN SAFI; 0.9 BN Valores; 1.9 BN Seguros; 0.4 BICSA; 16.2 BNCR owns a 49% stake in BICSA Total assets and equity of BNCR Group amount CRC BNCR; ,082,463 million and equity CRC 659,157 million (excluding BICSA) 9 of 26

10 BNCR: INVESTMENT HIGHLIGHTS (1Q 2018) Profitability Credit Net income CRC 6,592 millones 95.1% QoQ 51.5% YoY ROAE 4.21% 205 b.p QoQ 490 YoY ROAA 0.37% 18 b.p. QoQ 47 b.p. YoY Loan portfolio CRC 4,458,022 million 0.78% QoQ 5.94% YoY Provisions CRC 22,462 million 45.55% QoQ 375.8% YoY Cost of risk (1) 2.01% b.p. QoQ b.p. YoY NII and NIM Net Financial income CRC 39,324 million 55.82% QoQ 33.19% YoY NIM 4.43% 15 b.p. QoQ 38 b.p. YoY Net NIM (2) 2.91% 102 b.p. QoQ 181 b.p. YoY Efficiency Efficiency ratio (3) 64.1% 22 b.p. QoQ 47 b.p. YoY Capital ISP (4) 12.70% 1 b.p. QoQ 122 p.b. YoY (1) Cost of risk: annualized provisions for loan loses on average gross loans. (2) After allowances for impairment and recovery of assets and decrease in allowances (3) Administrative expenditure on gross operational income. (4) Regulatory Capital Adequacy Ratio 10 of 26

11 BNCR (STAND-ALONE): BALANCE SHEET BREAKDOWN Assets (million CRC) Liabilities and Equity (million CRC) 6,635,270 7,036,818 7,023,109 6,635,270 7,036,818 7,023, I-2017 IV-2017 I-2018 Cash and due frombanks Investments Loan portfolio Others assets I-2017 IV-2017 I-2018 Equity Others Obligations with entities Dep. público Foreign currency; 39.9 Foreign currency; 39.3 CRC; 60.1 CRC; of 26

12 BNCR (STAND-ALONE): LOAN PORFOLIO Loan portfolio gross (million CRC) 4,600,000 4,400,000 4,200,000 4,207,916 4,397,471 4,469,930 4,493,106 4,458,022 4,000,000 I-2017 II-2017 III-2017 IV-2017 I-2018 Portfolio composition (%) Loan portfolio by currency (%) I-2017 II-2017 III-2017 IV-2017 I-2018 I-2017 II-2017 III-2017 IV-2017 I-2018 Corporate Retail Enterprises Development CRC Foreign currency 12 of 26

13 BNCR (STAND-ALONE): LOAN PORTFOLIO Contribution to portfolio growth QoQ (million CRC) 4,493, ,087 11,920 6,054 7,476 10,087 4,458,022 IV-2017 Consumer Mortgages Corporate Enterprises Development Exchange rate I-2018 Contribution to portfolio growth YoY (million CRC) 4,207,916 84,035 66,917 35,529 16,849 35,709 11,066 4,458,022 I-2017 Consumer Mortgages Corporate Enterprises Development Exchange rate I of 26

14 BNCR (STAND-ALONE): LOAN PORTFOLIO BY SEGMENT I IV I Corporate Enterprises Development Mortgages Consumer Credit cards Loans million CRC As of the end of 1Q Q Q 2018 % Part. 1Q 2018 % nominal change QoQ YoY % real change QoQ YoY Corporate 1,272,421 1,331,067 1,331, Development Enterprises SME Consumer Mortgages Credit cards Consumer 541, ,642 1,223, , , , ,420 1,304, , , , ,185 1,292, , ,974 Total 4,207,916 4,493,106 4,458, of 26

15 BNCR (STAND-ALONE): LOAN PORTFOLIO BY SEGMENT Corporate Enterprises Development Mortgages Consumer Credit cards I-2017 I-2018 I-2017 I-2018 I-2017 I-2018 I-2017 I-2018 I-2017 I-2018 I-2017 I-2018 CRC USD CRC USD CRC USD CRC USD CRC USD CRC USD Loans Million CRC Local currency (million CRC) 1Q Q Q 2018 QoQ (%) YoY (%) Foreign currency (million CRC) 1Q Q Q 2018 QoQ (%) YoY (%) Corporate 485, , , , , , Development Enterprises SME Consumer Mortgages Credit cards Consumer 178, , ,614 98, , , ,403 1,099, , , , ,403 1,099, , , Total 2,570,488 2,956,198 2,956, ,547,761 1,536,908 1,499, , , ,961 19,087 56, , , ,305 20,999 45, , , ,163 19,952 42, of 26

16 BNCR (STAND-ALONE): ASSET QUALITY NPLs 1 percentage of the loan portfolio (gross) III-2016 IV-2016 I-2017 II-2017 III-2017 IV-2017 I-2018 Coverage ratio III-2016 IV-2016 I-2017 II-2017 III-2017 IV-2017 I-2018 (1) NPL: credits more delay 90 days (2) Allowances for loan impairments over NPLs 16 of 26

17 BNCR (STAND-ALONE): LOAN-TO-DEPOSIT RATIO III-2016 IV-2016 I-2017 II-2017 III-2017 IV-2017 I-2018 Total CRC USD 17 of 26

18 BNCR (STAND-ALONE): FUNDING STRUCTURE By product By currency 5,866,293 6,217,561 6,257,262 5,866,293 6,217,561 6,257, I-2017 IV-2017 I-2018 Obligations with public FCD Bonds and subord. Obligations Demand obligations with entities Term obligations with entities I-2017 IV-2017 I-2018 CRC USD CRC Foreign currency Obligations with public Obligations with public Demand obligations with entities Demand obligations with entities 34.9 FCD Term obligations with entities Bonds and subord. Obligations 94.2 FCD Term obligations with entities Bonds and subord. Obligations of 26

19 BNCR (STAND-ALONE): DEPOSIT BREAKDOWN Structure of deposits Deposits and average cost (CRC) 4,389,390 4,677, ,723, I-2017 IV-2017 I ,600,000 1,200, , , , ,979 1,348,202 Current account Savings deposits Term obligations with the public 49,016 Other deposits 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Current account Savings deposits Term obligations with the public Other Deposits and average cost (other) 32.6 I-2017 IV-2017 I-2018 CRC 33.2 USD ,200 1, Current account 843 1,070 Savings deposits Term obligations with the public 42 Other deposits 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 19 of 26

20 BNCR: OUTSTANDING DEBT Security Issue date Maturity Initial term (years) Currency Issued amount (million) Outstanding amount Interest rate BNCRC4A 05-set set años CRC 20,000 MM 20, % BNCR4A 12-jul jul años CRC 20,000 MM 20, % BNCR4B 20-set set años CRC 20,000 MM 14, % BNRC4C 06-oct oct años CRC 20,000 MM 11, % Subordinated 27-may nov años USD 100 MM 100 MM Libor6m+5.00% Subordinated 2-nov oct años USD 30 MM 30 MM Libor6m+5.25% RegS / 144A 1-nov nov años USD 500 MM 500 MM RegS / 144A 25-abr abr años USD 500 MM 500 MM RegS / 144A 1-nov nov años USD 500 MM 500 MM 6.25 Long term obligations MM de USD % Local International Total 20 of 26

21 CREDIT RATINGS Local International BNCR Last Long term debt Corporative bonds Mortgage bonds Long term deposits Fitch Nov-17 Fitch AA+ AA+ AA+ BNCR Fitch Moody s Last Nov-17 Feb-17 Outlook Est Neg Stand alone rating foreign currency BB Ba3 Short term debt Fitch Short term deposits F1+ Certificates of deposits F1+ 21 of 26

22 Savings deposits Term obligations with the public Current account MARKET SHARE Credit Deposits BNCR Other Corporatives and mutuals Special purpose Goverment banks (exbncr) Private banks BNCR Other Corporatives and mutuals Special purpose 16.9 Goverment banks (exbncr) 21.9 Private banks BNCR Other Corporatives and mutuals Special purpose Goverment banks (exbncr) Private banks BNCR Other Corporatives and mutuals 9.9 Special purpose 16.5 Goverment banks (exbncr) Private banks 22 of 26

23 FINANCIAL PERFORMANCE Financial income (million CRC) NIM -0.02% 59, % -2.1% 61,237 59, , , , ,287-61,678-64,650 I-2017 IV-2017 I-2018 Financial income Financial expense Fee income (million CRC) +45.1% +89.1% -23.3% 10,214 19,315 14,823 25,945 30,653 28,248-22,074-17,307-19,038 I-2017 IV-2017 I-2018 NIM Net NIM Operational expenditure (million CRC) +1.2% +0.4% +0.8% 46,404 46,569 46,946 6,597 7,980 6,358 30,623 27,652 30,782 I-2017 IV-2017 I-2018 Commissions Net FX income Other income I-2017 IV-2017 I-2018 Personal Operating Infraestructure Depreciation 23 of 26

24 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 CAPITALIZATION Minimun Sugef: 10% Razón Sugef Razón Tier I ISP composition (Dec-17) ISP composition (March-18) Tier I Ordinary capital Legal reserve Revaluations Earnings from previous periods Result of the period FINADE Subordinated debt Deductions Regulatory capital Ordinary capital Legal reserve Revaluations Earnings from previous periods Result of the period FINADE Subordinated debt Deductions Regulatory capital 24 of 26

25 EFFICIENCY Efficiency ratio Administrative expenditure (YoY growth, %) IV-2016 I-2017 II-2017 III-2017 IV-2017 I Administrative expenditure Inflation Administrative expenditure breakdown (million CRC) ,548 30,623 30,672 30,626 27,652 30,782 IV-2016 I-2017 II-2017 III-2017 IV-2017 I-2018 III-2016 IV-2016 I-2017 II-2017 III-2017 IV-2017 I-2018 Personal Operational Infrastructure Depreciation 25 of 26

26 BRANCHES AND PAYROLL Branches (1) Payroll (1) 183 5,502 5, ,474 5,464 5,452 5,435 5,456 5,440 5,442 5,480 IV II 2016 III 2016 IV 2016 I 2017 II 2017 III 2017 IV 2017 I 2018 IV 2015 I 2016 II 2016 III 2016 IV 2016 I 2017 II 2107 III 2017 IV 2017 I 2018 (1) Includes all BNCR Group 26 of 26