Institutional Presentation. Investor Relations, November 2017

Transcription

1 Institutional Presentation Investor Relations, November 2017

2 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 2

3 Highlights Coopeuch is Chile's leading credit union with the #1 market share by a significant margin since its foundation in Coopeuch is also the largest credit union in Latin America by USD MM total assets. Coopeuch is highly regulated since 1975 by Chilean authorities including the Superintendence of Banks and Financial Institutions (SBIF) and the Central Bank of Chile (BCCH) with regular reporting requirements and constant oversight. Our business model provides us with a sustainable and very high capitalization (33,2% Core Equity / Risk Weighted Assets), well above the Chile banking system. Coopeuch maintains presence in all the main regions in Chile with a historically well diversified and healthy loan book. Consistent profitability, efficiency, liquidity coverage and capital structure support our solid investment grade ratings. Coopeuch looks to continue diversifying funding sources in the international markets going forward. 3

4 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 4

5 Chile: Macro-economic environment Chile a stable economy with low government debt Sovereign Ratings (S&P) and Government Gross Debt (% GDP) Key Economic Indicators Population: 18,3 mm GDP: US $248 bn 0% 50% 100% 150% 200% 250% 300% Switzerland 34% Australia 46% Singapore 111% Inflation (%): 1,9% USA 74% Household Consumption / GDP 64% New Zealand 34% Government Spending / GDP 19% China 16% Investment / GDP : 22% Exports / GDP: 29% Chile Japan Mexico 19% 56% 235% Imports / GDP 28% Peru 26% Sovereign ratings: Aa3 (Neg) / A+ / A Colombia 45% Source: Central Bank of Chile (BCCh) Brazil 74% BB BB BB+ 15 BBB- 20 BBB 25 BBB A- 40 A A+ 45 AA AA AA+ 60 AAA 65 Source: Bloomberg 5

6 Chile: Macro-economic environment GDP growth expectations stabilize for 2017 and rise for ,3 GDP (YoY real growth %) 2,5 Central Bank ST Reference Rate 3,5 3,5 (%) 1,6 1,4 2,5 2, e 2018 e e 2018 e 4,4 Inflation (Annual %) 6,3 Unemployment (% of workforce) 6,5 6,8 6,6 2,7 2,4 2, e 2018 e (1) Source: Central Bank of Chile and Research Department (Coopeuch) e 2018 e 6

7 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 7

8 Chilean financial system A diversified economy with a stable growth 5% 7% 3% 5% 9% 39% Services Manufacturing Mining Commerce Construction ,2% 5,2% Total Loans (USD bn, YoY growth %) 238 6,3% ,3% 9,0% 9,7% 5,5% 6,1% 5,4% 4,8% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 38,0% 33,0% 28,0% 23,0% 18,0% 13,0% 8,0% 3,0% -2,0% Banking Sector YoY Banking YoY Cooperatives 10% 11% 11% Transport Public Admin Fishing & Agriculture Others ,9% Total Deposits (USD bn, YoY growth %) ,2% 14,7% 14,7% ,7% 27,0% 22,0% 17,0% 12,0% (1) Source: Central Bank of Chile and SBIF ,0% 7,1% 3,3% 4,1% 2,0% 1,6% 2,4% -3,0% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Banking Sector YoY Banking YoY Cooperatives 8

9 Chilean financial system Banking sector with a healthy risk profile Non-performing Loan Ratio (%) Consumer NPL Ratio (%) 2,71 2,37 2,20 2,13 2,10 2,39 2,40 1,86 1,85 1,86 2,21 2,11 2,10 2,08 2,00 2, H17 Source: SBIF and ABIF H17 Source: SBIF and ABIF Mortgage NPL Ratio (%) Household leverage (%) 4,95 4,20 3,86 3,31 3,05 2,71 2,71 2,41 57,80 57,01 57,05 58,43 61,50 64,87 66, H17 Source: SBIF and ABIF Source: Financial Stability Report, BCCh 9

10 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 10

11 Coopeuch: The biggest credit union in Latam Coopeuch is the nation s leading credit union Branches and Members Sep-17 YoY (%) Key Data (USD mm) Sep-17 YoY (%) Members % Branches 83 0% Important presence in the regions, the most decentralized regulated by SBIF (more than 70% of placements outside metropolitan region) institution. Total Assets % Employees (n ) % Gross Loans % Total Deposits % Equity 657 4% Net Income YTD 75 51% Members (ths) International Ratings Long Term Outlook Moody s Baa2 Stable Standard & Poor s BBB Negative Fitch Ratings BBB Positive Sep-17 11

12 Coopeuch: The biggest credit union in Latam Second place in savings accounts and an important participation in consumer loans (1) (2) RK RK Institution Consumer June-17 (USD MM) 1 BANCO SANTANDER BANCO DE CHILE BCI ITAÚ CORPBANCA BANCO ESTADO LOS ANDES BANCO FALABELLA COOPEUCH BBVA SCOTIABANK CREDICHILE (*) BCI NOVA (*) LA ARAUCANA (*) LOS HÉROES (*) SECURITY BANCO RIPLEY BANEFE (*) CONDELL (*) DE SEPTIEMBRE (*) BICE 119 (1) Source: SBIF, (*) last information available (2) Ranking competition focused on the same socioeconomic level of Coopeuch RK Institution Savings Accounts May-17 (USD MM) 1 BANCO ESTADO COOPEUCH BANCO DE CHILE LOS ANDES BANCO SANTANDER BANCO FALABELLA 87 7 BCI 77 8 BBVA 66 9 SCOTIABANK BANCO ITAÚ 13 RK Institution Savings Accounts (n ) 1 BANCO ESTADO COOPEUCH BANCO SANTANDER LOS ANDES BANCO FALABELLA BANCO DE CHILE BCI BBVA SCOTIABANK LA ARAUCANA

13 Coopeuch: The biggest credit union in Latam Cooperativeness a virtuous business model A credit union is a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members. Credit unions differ from banks and other financial institutions in that those who have accounts in the credit union are its members and owners, and they elect their board of directors in a one-person-one-vote system regardless of their amount invested. Commitment of each member to make a monthly contribution of capital between 10 and 100 participation quotas (0,4 USD each) Annual division of the results of the cooperative among all the members based on the contributed capital and use of products Some members save by savings accounts or time deposits Some members apply for loans, which are awarded after risk analysis SAVINGS ACCOUNTS accounts of members MEMBERS MEMBERS WITH CONSUMER LOANS 13

14 Coopeuch: The biggest credit union in Latam Our consumer credit model 85% With Agreements Over agreements with entities 15% Without Agreements The member makes the payment of his credit through the discount made by his employer directly in his monthly remuneration 82% Agreements with public sector entities The member makes the payment of his credit directly, just as he would in any other financial institution 18% Agreements with private sector entities Our focus on consumption is to continue to develop new payroll discount agreements and increase penetration in the active agreements. 14

15 Coopeuch: The biggest credit union in Latam Breakdown of payroll deductions (1) Municipalities Education 7% 5% 4% 3% Autonomous Government Agencies Other Ministries Min. of Health 4% 7% 2% 2% 4% Health Manufacturing Mining Transport 9% Public Sector 53% Social Development Corporation 4% 5% Private Sector 48% Communications 9% Health 6% Agriculture 10% Education 8% 10% Other Services Wholesale and Retail Power of Attorney Financial Services Others Others (1) Information for September

16 Coopeuch: The biggest credit union in Latam Solid governance standards and highly regulated Board Members Risk Committee Audit Committee Assets & Liabilities Committee New Business Committee Human Resources Committee Service Experience & Corporative Affairs Committee Prevention of Money Laundering & Terrorist Financing Committee Coopeuch is highly regulated SBIF BCCh Cooperatives Department under Siria Jeldes Chang (President) Andrés Reinstein Álvarez (Vice President) Erik Haindl Rondanelli C C C C C the Ministry of Economy, Development and Reconstruction. Applicable Laws and Regulations Central Bank of Chile (Chapter Sergio Zúñiga Astudillo C III.C.2 the Compendium of Financial Standards). Edith Sánchez Meza (Secretary) Alejandro Quintana Hurtado Carlos González Cáceres C Superintendent of Banks. Ministry of Economy (General Law on Cooperatives/DFL 5). Participant C President 16

17 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 17

18 Healthy Balance Structure Balance Structure as of September 2017 Commercial & CC USD 46 Sights Accounts USD 2 Savings Accounts USD 512 (1) LTD y LTD Adjusted (2) Payroll USD 134 (27%) USD % 209% 204% 195% 193% Consumer USD Retail Time Deposits USD % 84% 84% 85% 86% USD Equity USD 658 Payroll USD (85%) USD 928 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Payroll USD 295 (62%) Other Liabilities USD 270 Mortgages USD 607 Bank Loans USD 11 Local Bonds USD 398 USD 536 USD 232 Fixed & Other Assets International Bonds USD 127 USD 209 Financial Assets Institutional Time Deposits USD 288 Assets <--- USD > Liabilities (1) LTD: is a ratio between the banks total loans and total deposits (2) LTD adj: total loans (excluding mortgages) over deposits and capital (due cooperative model) 18

19 Healthy Balance Structure Total loans increase up to 9,3% YoY in September 9,3% Products (USD mm) Sep-17 YoY (%) Consumer % Mortgages 607 3% Commercial 24 19% Credit Cards 22 98% Total % Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 19

20 Healthy Balance Structure Total deposits increase up to 21% YoY in September 21% Products (USD mm) Sep-17 YoY (%) Savings Accounts % Retail Time Deposits % Institutional Time Deposits % Sight Account 2 85% Total % Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 20

21 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 21

22 A unique business model: High levels of capitalization Strong levels of capital and liquidity that support growth Basel Ratio Liquidity Coverage Ratio (LCR) 175% 184% 37,97% 41,55% 39,94% 36,38% 33,18% 131% 146% 126% 30,12% 32,91% 32,05% 29,04% 26,95% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Regulatory Capital / Risk Weighted Assets Basic Capital / Total Assets Required by Sbif (10%) Required by Sbif (5%) Sep-16 Dec-16 Mar-17 Jun-17 Sep Minimum target (120%) 22

23 A unique business model: Stable asset quality Asset quality remains healthy 8,0% 6,0% 4,0% 2,0% 0,0% 8,0% 104% Total Loans NPLs Charge Offs Ratio Coverage Ratio 146% 147% 115% 119% 120% 109% 109% 110% 108% 155% 146% 157% 180% 160% 140% 120% 100% 80% 6,0% 4,0% 5,1% 4,8% 5,0% 4,8% 4,7% 4,8% 4,2% 4,2% 3,7% 3,7% 3,4% 3,7% 3,5% 60% 40% 2,0% 0,0% 0,4% 0,4% 0,3% 0,3% 0,2% 0,3% 0,4% 0,3% 0,3% 0,3% 0,2% 0,3% 0,3% 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 20% 0% 0,0% 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Consumer Loans NPLs Charge Offs Ratio Coverage Ratio 226% 219% 223% 209% 213% 219% 227% 233% 208% 211% 217% 211% 198% 3,5% 3,3% 3,4% 3,4% 3,1% 3,4% 3,1% 3,0% 3,2% 3,1% 3,4% 3,2% 2,8% 0,5% 0,5% 0,4% 0,5% 0,3% 0,4% 0,6% 0,4% 0,4% 0,5% 0,3% 0,4% 0,4% 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 % 250% 200% 150% 100% 50% 0% 23

24 A unique business model: Stable asset quality Accumulated Charge-Offs 6,1% 6,1% 6,0% 5,9% 5,8% 5,8% 5,9% 5,8% 5,7% 5,6% 5,6% 5,7% 5,7% 5,6% 5,6% 5,5% 5,5% 5,5% 5,4% 4,4% 4,4% 4,2% 4,2% 4,1% 4,1% 4,1% 4,1% 4,0% 3,9% 3,9% 3,9% 3,9% 3,9% 3,9% 3,9% 3,8% 3,9% 3,8% 0,4% 0,4% 0,4% 0,2% 0,3% 0,3% 0,3% 0,3% 0,2% 0,3% 0,2% 0,2% 0,2% 0,2% 0,2% 0,1% 0,1% 0,1% 0,1% 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 Total Loans Consumer Mortgages Accumulated charge offs: Real charge offs of the last 12 months / total loans balance of the month evaluated Example: October 2016 corresponds to the sum of the charge offs between October 2016 and September 2017, divided by the total loans balance of October

25 A unique business model: Stable asset quality Chilean and international institutional ratings (1) Chilean Institutions S&P Ratings Institution Moody s S&P Fitch Banco Estado Aa3 /*- A+ A Santander Chile Aa3 /*- A /*- A Banco Chile Aa3 /*- A WD (A, 2005) Banco BCI A1 /*- A /*- A Codelco A3 A+ A Itau Corpbanca A3 BBB+ /*- WD (BBB+, 2011) BBVA Chile A3 BBB+ /*- N/A Coopeuch Baa2 BBB /*- BBB /*+ Soquimich Baa1 /*- BBB /*- N/A Entel Baa3 BBB /*- BBB /*- Enap Baa3 BBB- A CMPC N/A BBB- /*- BBB ANZ Republic of Chile Banco Estado Chile Banco Chile CA-CIB LBP HSBC Wells fargo BCI Santander Chile JP Morgan UBS Bank of America Citibank Goldman Sachs Credit Suisse Banamex Coopeuch Republic of Colombia Bladex Tanner Serv Financieros Bancolombia Fed Republic of Brazil Bradesco 0 BB- 5 BB 10 BB+ 15 BBB- 20 BBB 25 BBB A- 40 A 45 A+ AA- 50 Coopeuch maintains very good risk ratings compared to other entities (2) (1) (1) Source: Bloomberg 25

26 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 26

27 Results driven by strong business model Preparing for the future Establishment of a five-year business plan with a high impact Financing of the five-year plan: establishment of a new international bond program, GMTN Investments in new initiatives to meet the new challenges, for these 2017 we already have: New website and APP Coopeuch, so that the members have a better management of their products as well as a greater link with the members and improve their quality of life, knowing their needs, preferences and behavior patterns Electronic transfer with Coopeuch demand account, allowing interbank transfers as well as payment between Coopeuch products (payment of credits, participation shares, savings accounts, etc.). Coopeuch s first subsidiary, new insurance broker, which allows to complete the offer to our members. 27

28 Results driven by strong business model Results driven by activities with clients Income Statement (USD mm) Sep-16 Sep-17 YoY % Net Interest Income % Net Fee and Commission Income % Operating Expenses (101) (108) 7% Provisions for Loan Losses (35) (45) 26% Net Operating Profit % Tax Expense (1) (1) 59% Net Income % ROE Banking System Coopeuch 16,5% 16,0% 15,6% 15,0% 15,1% 15,3% 14,3% 12,0% 11,8% 12,1% 12,8% 14,0% 13,8% 14,1% 13,8% 11,1% 11,0% 13,0% 12,8%12,8% 9,9% 10,8% 10,5% 10,5% 10,5% 10,4% (1) Efficiency (1) ROA (1) Banking System Coopeuch 49,3%49,8%50,3%50,4% 51,5% 50,8% 48,8%49,0%48,3%48,1% 48,9%49,2%49,0% 49,8% 48,8%47,9%47,1% 52,7% 46,3% 48,0%50,3% 49,3% 50,0% 49,1% 48,3%47,5% 3,2% 3,2% 3,2% 3,1% Banking System Coopeuch 4,7% 4,7% 4,5% 4,1% 4,3% 4,3% 4,1% 3,6% 3,8% 1,0% 1,0% 0,9% 0,9% 0,8% 0,9% 1,2% 1,1% 1,2% 1,2% 1,1% 1,1% 1,1% (1) Source: Sbif 28

29 Results driven by strong business model Chile: GDP growth expectations improve for 2018, looking forward to the presidential elections this December. Coopeuch: changes in the LGC are the key to consolidate the position in consumer loans, as a result, the growth in loans has been substantially over the Chilean banking system. A healthy balance structure that also maintains good asset quality. Cooperative model provides solid levels of capitalization, well above all the Chilean banks. For the rest of 2017 and 2018, we expect these good business trends to continue. 29

30 Agenda Chile: Macro-economic environment Chilean financial system Coopeuch: The biggest credit union in Latam Healthy balance structure A unique business model Results driven by strong business model Annexes 30

31 Coopeuch summary financial statements Balance Sheet (USD mm) Sep-16 Sep-17 YoY % ASSETS Cash and Deposits in Banks % Net Loans % Financial Assets % Other Assets % Property, Plant and Equipment % Total Assets % LIABILITIES Retail Time Deposits % Institutional Time Deposits % Saving Accounts % Sight Liabilities % Interbank Borrowings % Other Liabilities % Senior Local Bonds % (1) Equity % Total Liabilities % (1) The variation of this items are mainly due to the provision of interest to capital and surplus, which up to the previous year were part of the equity. This obligation is born with the adoption of the new compendium of accounting standards issued by the SBIF starting on January Rate Exchange used: 1 USD = 636,85 CLP 31

32 Coopeuch summary financial statements Income Statement (USD mm) Sep-16 Sep-17 YoY % Interest Income % Interest Expense (46) (42) -8% Net Interest Income % Fee and Commissions Income % Fee and Commissions Expense (2) (3) 54% Net Fee and Commission Income % (1) Income from Investments 2 (0) -118% Other Operating Income 0 (0) -131% Gross Operating Profit % Operating Expenses (101) (108) 7% Allowances for Loan Losses (35) (45) 26% Net Operating Profit % Non Operating Expense (2) (16) 0-101% Tax Expense (1) (1) 59% Net Income % (1) Change of investment portfolio classification of government bonds, which became classified as Available For Sale (AFS), therefore the MTM is recorded in the equity and not in the income statement. (2) The variation is explained by the elimination of the monetary correction in the income statement, which has its origin in the adoption of international financial reporting standards (IFRS). Rate Exchange used: 1 USD = 636,85 CLP 32

33 Institutional Presentation