Financial Results. April 30 th,2015. Banco de Chile Q1 15

Transcription

1 Financial Results April 30 th,2015 Banco de Chile Q1 15

2 AGENDA 1Q15 BCH Financial Results Banco de Chile at the top of the industry 1. Economic Environment 2. Banking Industry 3. BCH Strategic Focus 4. BCH Financial Results 2

3 Economy A recovery that hinges on the labor market and exports IMACEC QoQ (MA3, YoY, %) feb-12 feb-13 feb-14 feb-15 Trade Balance (MA3, YoY, %) 30,000 25,000 20,000 15,000 10,000 5, ,000 mar-05 mar-07 mar-09 mar-11 mar-13 mar-15 Labor Market (% and YoY, %) Unemployment Rate Wages 4 feb-12 feb-13 feb-14 feb-15 Retail & Supermarket Sales (MA3, YoY, %) Retail Supermarket -2 feb-12 feb-13 feb-14 feb-15 3

4 Economy Stubborn inflation and solid fiscal accounts Headline and Core Inflation (YoY, %) CPI CPIX CPI ex food-energy 0 mar-12 mar-13 mar-14 mar-15 Exchange Rate and Copper Prices (CLP/USD and Dollars/Pound) Overnight and Long Term Rates (%) Fiscal Accounts (YoY, % and % of GDP) BCP 5Y BCP 10Y MPR 2 mar-11 mar-12 mar-13 mar-14 mar CLP Copper (right, inverted) Spending growth Fiscal Balance mar-11 mar-12 mar-13 mar-14 mar

5 AGENDA 1Q15 BCH Financial Results Banco de Chile at the top of the industry 1. Economic Environment 2. Banking Industry 3. BCH Strategic Focus 4. BCH Financial Results 5

6 Banking Industry Slower loan growth in line with business and consumer confidence levels mar-14 jun-14 sep-14 dic-14 mar-15 Millares Loan Growth (Var. Real YoY) Accumulated Net Income & ROAE (In billions of CLP and %) Commercial Consumer Mortgage Total Net Income ROAE 9.3% 9.3% 10.1% 10.4% 10.3% % 7.1% % 5.0% 5.1% 5.0% 3.9% 3.0% 1.6% 4.7% 4.9% 3.2% 2.7% 3.4% 3.0% 17% 13% 18% 13% Mar-12 Mar-13 Mar-14 Mar-15 Mar-12 Mar-13 Mar-14 Mar-15 Var. UF 1.07% 0.12% 1.28% -0.02% Note: Excludes loans from subsidaries abroad and Ripley Bank Consolidation in December

7 AGENDA 1Q15 BCH Financial Results 1. Economic Environment 2. Banking Industry 3. BCH Strategic Focus 4. BCH Financial Results 7

8 BCH Strategic Focus Consistent and stable strategy that generates sustainable profitable growth in the long-term Lead the Retail and Wholesale Business Effective business strategy in growing attractive segments Improving funding structure with more stable and diversified sources Operational Excellence Service Quality Consistent improvements in Service Quality Building Social Reputation Committed to a better and more developed Chile Aligning People/ Culture/Strategy 8

9 BCH Strategic Focus Effective business strategy in growing attractive segments Loan Growth (In trillions of CLP, %) (Tr of CLP, %) 1Q15 YoY QoQ Retail % 1.5% Mortgage % 2.0% SMEs % 1.6% Consumer: Middle/ Upper Income % 1.3% Consumer: Credichile % -1.6% Wholesale % -1.7% Total Loans % 0.0% Developments in business intelligence are improving pricing and segmentation New sales strategy applied in digital channels has driven growth in online sales of 224% over the past two years. 68% of total preapproved consumer loans are sold online, which has almost doubled the average reached before implementation of this strategy. Customer Experience Project and clientcentric strategy have increased retention levels and have allowed us to understand the needs of our customers on a whole new level Banco de Chile awarded Best Place to Innovate for new Mobile Apps 9

10 BCH Strategic Focus Improving funding structure with more stable and diversified sources Current Account Deposits (In Trillions of CLP) Time Deposits (In Trillions of CLP) Debt Issued (In Trillions of CLP) +7% % +12% Q14 1Q15 1Q14 1Q15 1Q14 1Q15 Current Account Deposits (%, 1Q15) Time Deposits (%, 1Q15) Bonds (Senior & Subordinated,%,1Q15) 51% 49% 34% 25% 42% 26% 74% Retail Wholesale Retail Wholesale Institutional* *Includes Mutual funds and AFPs Local Foreign 10

11 BCH Strategic Focus Consistent improvements in Service Quality Net Promoter Score (%) Evolution of Customer Satisfaction (%) 66.6% 67.9% 69.3% 76% 78% 79% 79% 60.0% 67% 69% 72% 71% 68% 63% 53% Q Q15 Account Managers Mobile Banking Call Center 11

12 BCH Strategic Focus Committed to a better and more developed Chile Together with Desafio Levantemos Chile, we are collaborating in order to provide aid to those who suffered from the flash floods experienced in the North of Chile last March. We are a sponsor of Expo Milan 2015, a Universal Expo that seeks to provide a non-commercial dialogue where countries have the opportunity to share new technologies, innovations, discoveries, art and architecture, as well as establishing cultural ties to each other. 12

13 AGENDA 1Q15 BCH Financial Results Banco de Chile at the top of the industry 1. Economic Environment 2. Banking Industry 3. BCH Strategic Focus 4. BCH Financial Results 13

14 1Q15 BCH Results Solid results despite lower inflation Quarterly Net Income (In billions of CLP) Net Income based on normalized inflation* 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q QoQ 1Q 2Q 3Q 4Q UF 0.12% -0.07% 1.04% 0.95% 1Q 2Q 3Q 4Q 1.28% 1.76% 0.60% 1.90% Q -0.02% *Estimated Net Income with a 3% annualized inflation (UF) on bank book and 15.3% effective tax rate 14

15 1Q15 BCH Results Solid core revenues despite weak economy and regulations Quarterly Operating Income (In billions of CLP) Operating Margin Breakdown (Operating Income / Avg. Daily Loans) % 7.9% 7.3% 8.1% 7.0% 4.2% 4.2% 4.4% 4.2% 4.1% % 2.3% 1.7% 2.6% 1.5% 1Q14 2Q14 3Q14 4Q14 1Q15 Customer income Non-customer income* QoQ 1Q14 2Q14 3Q14 4Q14 1Q15 UF 1.28% 1.76% 0.60% 1.90% -0.02% *Includes income from the contribution UF GAP position and treasury activities 1.3% 1.3% 1.3% 1.3% 1.3% 1Q14 2Q14 3Q14 4Q14 1Q15 Total Operating Income Interest Income from Customers Fees Non-customer income* 15

16 1Q15 BCH Results Provision level reflects effective risk management Quarterly Loan Loss Provisions (In billions of CLP) Variation in Loan Loss Provisions (In billions of CLP) % Q14 2Q14 3Q14 4Q14 1Q15 16

17 1Q15 BCH Results Higher expenses due to non-recurring effects and inflation Operating Expenses (In billions of CLP) Efficiency Ratio (Operating Expenses/Operating Revenues, %) 12% % 39% 44% 41% 43% 43% 49% 47% 45% 44% Q14 2Q14 3Q14 4Q14 1Q15 Personnel Collective Barg. Agreement Administration & Others 1Q14 2Q14 3Q14 4Q14 1Q15 Efficiency Ratio Adjusted Efficiency Ratio (1,2) (1) Excludes non-recurrent personnel expenses of ~Ch$39.6 Bn in 4Q14, Ch$1.3 Bn in 3Q14 and Ch$4.2Bn in 2Q14 related to collective bargaining agreements (2) Estimated efficiency with a normalized annual UF inflation of 3% on bank book (operating income) 17

18 1Q15 BCH Results BCH continues to show higher profitability versus peers Return On Average Equity (ROAE) (%, based on SBIF data and monthly average volumes) 22.6% 19.1% 27.8% 26.9% 25.7% 23.5% 24.7% 24.5% 21.7% 17.9% 17.5% 18.7% 18.4% 13.2% Q15 Local Peers 1 Net Operating Margin (Net of Risk) (Net Operating Income/Avg. Loans) 6.2% 5.8% Efficiency Ratio (Operating Expenses / Operating Revenues) 48.8% 48.2% 6.2% 5.2% 40.0% 46.9% Q Santander, BCI, CorpBanca, and Itau Q15 18

19 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; and 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. 19