3Q17 Financial Results November 3 rd, 2017

Transcription

1 3Q17 Financial Results November 3 rd, 2017

2 AGENDA I. Chilean Economy II. Banking Industry Overview III. Banco de Chile 3Q17 Results and Strategy 2

3 CHILEAN ECONOMY Chile s Monthly GDP (YoY, QoQ SAAR %) 5% 4% 3% 2% 1% 0% -1% Imacec YoY Confidence Indicators (YoY, %) Imacec QoQ (right axis) -2% -2% sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 8% 6% 4% 2% 0% Exports and Imports (YoY, %) 20% 10% 0% -10% -20% Exports -30% sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 CPI and Exchange rate (YoY, %) Imports CPI Exchange rate (right axis) 55 Consumer Business 6% 30% % 4% 3% 2% 20% 10% 0% 35 1% -10% 30 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 Source: Bloomberg, Central Bank of Chile 0% -20% sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 3

4 CHILEAN ECONOMY GDP (YoY, %) Unemployment (%, average) f 2018f f 2018f CPI (YoY, %, end of period) Monetary Policy Rate (%, end of period) f 2018f Source: Bloomberg, Central Bank of Chile f 2018f 4

5 AGENDA I. Chilean Economy II. Banking Industry Overview III. Banco de Chile 3Q17 Results and Strategy 5

6 BANKING INDUSTRY Loans 1 Consumer non-performing loans 1 (NPLs to average loans,%) +4.9 % +6 bps 138, , , , , % 1.94% 2.13% 2.02% 1.96% Quarterly Net Income ROAE (Net income to average shareholders equity, %) % -87bps % 13.9% % 8.6% 11.4% 1. Excludes foreign subsidiaries 6

7 AGENDA I. Chilean Economy II. Banking Industry Overview III. Banco de Chile 3Q17 Results and Strategy 7

8 3Q17 BCH RESULTS Quarterly Net Income (Net income In billions of CLP and Variation QoQ in UF) % 1.46% 1.11% 0.71% 0.93% 0.66% 0.47% 0.47% 0.73% -0.02% -0.03% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 Full year 2015 Net Income: $559 Bn. ROAE: 21% Inflation 1 : 4.1% Corporate tax rate: 22.5% 2016 Full year 2016 Net Income: $552 Bn. ROAE: 20% Inflation 1 : 2.8% Corporate tax rate: 24.0% YTD Net Income: $434 Bn. ROAE: 20% Inflation 1,2 : 1.6% Corporate tax rate: 25.5% 1.- UF Variation 2- Annualized 8

9 LONG-TERM CUSTOMER CENTRIC GROWTH MODEL To be the best bank for our customers, the best place to work, and the best investment for our shareholders Delivering sustainable and profitable growth based on: I. Greater penetration in the retail segment II. III. IV. Strengthening customer experience Continual improvements in productivity Proven risk management practices 9

10 SETTING THE STAGE FOR GROWTH Effective business strategies that attract profitable customers Personal Banking Customers (Thousands current account holders, local currency) % Customer Growth 1 : 1. BCH: +5.9% 2. BCI: +4.6% 3. San: +3.7% 4. Itaú: +2.8% Current Account Balance Personal Banking 2 (In millions of CLP and Market Share in %, As of July 2017) % Market Share BCH BSAN BCI 44% +34.3% 23.0% +40.7% Avg DDA Balance per Account 35% 14.5% Loan Share of Wallet Banco de Chile Customers 3 (As of June 2017, %) Personal Banking Consumer Loans SMEs Comercial Loans Jul Sep Dec Mar Jul Variation YoY personal current accounts, July Itau includes Corpbanca 2. Source: SBIF 3. Customer BCH loans to total loans based on SBIF data 4. Avg. evolution of new BCH customer based on internal and SBIF data from Jun-17, May-17, Apr-17 Evolution of loan share of wallet share of new clients 4 31% 16% 40% 42% 37% 41% Personal Banking Consumer Loans SMEs Comercial Loans 30 days 60 days 90 Days 10

11 SETTING THE STAGE FOR GROWTH Our steady increases in our customer base provide the foundation for revenue growth Loans by Segment 25,004 25,450 Retail Loans 8% YoY Personal Banking Loans 11,320 6, % +9.0% 12,151 6,783 4, % 4,599 Mortgage Loans Middle / Upper Income Loans* Credichile Loans** 11,320 12, % Q16 3Q17 2,877 3,199 10,807 10, % -6.5% *Includes commercial and consumer loans **Credichile corresponds to consumer finance division DDA 1 Cost of Funding 2 (Average, in billions of CLP) (SBIF, YTD Sep-17, Local Currency, %) 3Q16 3Q17 Wholesale SME Personal YoY 7, % 8, % 2.7% 2.9% 1. Demand deposit account 2. Excludes results from accounting hedges 3Q16 3Q17 BCH BSAN BCI 11

12 ROBUST OPERATING INCOME Consistently growing customer income by improving mix in retail products, managing spreads proactively and improving fee income Quarterly operating income 1 Retail Customer Income 6% YoY Margin evolution (%) 3Q16 3Q % 3.90% % UF 2.98% 3.03% % YoY 4.6% YoY -0.03% UF NIM Spread Customer income - Retail Customer income - Wholesale Non-customer income UF (QoQ) 0.66% 0.47% 0.47% 0.73% -0.03% 5.7% YoY Net fees % Non-customer income Includes income from the contribution UF GAP position and treasury activities. 12

13 LONG-TERM CUSTOMER CENTRIC GROWTH MODEL To be the best bank for our customers, the best place to work, and the best investment for our shareholders Delivering sustainable and profitable growth based on: I. Greater penetration in the retail segment II. III. IV. Strengthening customer experience Continual improvements in productivity Proven risk management practices 13

14 BUSINESS INTELLIGENCE DIGITAL BANKING CUSTOMER EXPERIENCE SUPERIOR INITIATIVES THAT MAKE A DIFFERENCE NET PROMOTER SCORE CADEM, September 2017, (%) BRAND ASSET VALUATOR (BAV) 2017, (percentile) BCH BCI BSAN Online and Branch Transactions As of August , total number of personal banking transactions (millions) Online 51.0 Branches 55% 47% 45% 53% BCH BSAN BCI Evolution of Online Transactions As of August , total number of personal banking transactions (millions) App % +30% YoY 69.9% 30.1% YTD Aug-16 Webpage % 44.0% YTD Aug % +90% YoY Pre-Approved Consumer Loan Risk Model Newly improved model implemented in 3Q17 More efficient admissions process Better management of pre-approved loans More flexibility 14

15 LONG-TERM CUSTOMER CENTRIC GROWTH MODEL To be the best bank for our customers, the best place to work, and the best investment for our shareholders Delivering sustainable and profitable growth based on: I. Greater penetration in the retail segment II. III. IV. Strengthening customer experience Continual improvements in productivity Proven risk management practices 15

16 FIRM FOCUS ON COST CONTROL Streamlining processes has translated into improved productivity and cost reductions Operating expenses Branch and Employee Evolution % , % -4.5% 14, % YoY 3Q16 3Q17 3Q16 3Q % YoY Employees Branches Personnel Efficiency Ratio (%) Administration & Others 46.2% 45.4% % 48.8% Operating Expenses/Average Total Assets (%) 2.6% 2.4% 2.4% 2.5% 2.4% Productivity Retail Loans by Employee Productivity + 14% YoY 16

17 LONG-TERM CUSTOMER CENTRIC GROWTH MODEL To be the best bank for our customers, the best place to work, and the best investment for our shareholders Delivering sustainable and profitable growth based on: I. Greater penetration in the retail segment II. III. IV. Strengthening customer experience Continual improvements in productivity Proven risk management practices 17

18 SUSTAINABLE LONG-TERM FOCUS ON RISK MANAGEMENT Prudent risk management practices has allowed us to maintain risk at low levels Quarterly Loan Loss Provisions Variation in LLP by Concept % Q16 Volume & Mix Improvement Exchange Rate 3Q % 1.00% 0.98% 0.79% Variation in LLP by Product Total LLP Ratio Q16 Commercial Contingent and Other Mortgage Consumer 3Q17 18

19 A SUCCESSFUL 2017 YTD RESULTS Net Income Pre-Tax Income Customer Income Non-customer Income $434 bn $517bn $1,015 bn $259 bn +1.3% (YoY) +3.8% (YoY) +6.0% (YoY) 27.3% (YoY) Net Fees and Commissions Loan Loss Provisions Operating Expenses Basel Ratio $261 bn 0.92% $587 bn 14.4% +8.8% (YoY) -29 bps (YoY) -1.8%(YoY) +53 bps (YoY)

20 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 performance. Such statements include any forecasts, projections and descriptions of anticipated cost savings or other synergies. You should be aware that any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties, and that actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, without limitations, the actions of competitors, future global economic conditions, market conditions, foreign exchange rates, and operating and financial risks related to managing growth and integrating acquired businesses), many of which are beyond our control. The occurrence of any such factors not currently expected by us would significantly alter the results set forth in these statements. Factors that could cause actual results to differ materially and adversely include, but are not limited to: Changes in general economic, business or political or other conditions in Chile or changes in general economic or business conditions in Latin America; Changes in capital markets in general that may affect policies or attitudes toward lending to Chile or Chilean companies; Unexpected developments in certain existing litigation; Increased costs; Unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms. You should not place undue reliance on such statements, which speak only as of the date that they were made. Our independent public accountants have not examined or compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we may issue in the future. We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect later events or circumstances or to reflect the occurrence of unanticipated events. 20