2Q17 Financial Results As of June 30, 2017

Transcription

1 2Q17 Financial Results As of June 30, 2017

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

3 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 CHILEAN ECONOMY Chile s Monthly GDP Contribution (YoY, %) 5,0 4,0 3,0 2,0 1,0 0,0-1,0-2,0-3,0 Mining Imacec (right axis) Imacec Headline & Core CPI (YoY, %) 6,0 5,0 4,0 3,0 2,0 1,0 0,0 CPI Core CPI Unemployment Rate (% Labour Force) Retail Sales (YoY, %) 25 7,5 7,0 6,5 6,0 5,5 5,0 4,5 4, Retail Sales Durable Goods Source: Bloomberg, Central Bank of Chile, INE. 3

4 CHILEAN ECONOMY GDP (YoY, %) Unemployment (%) 1,9 2,3 1,6 1,4 2,7 6,4 6,2 6,5 6,8 7, f 2018f f 2018f CPI (YoY, %, end of period) Monetary Policy Rate (%, end of period) 4,6 4,4 2,7 2,3 2,8 3,0 3,5 3,5 2,3 2, f 2018f Source: Bloomberg, Central Bank of Chile f 2018f 4

5 AGENDA I. Chilean Economy II. Banking Industry Overview III. Banco de Chile 2Q17 Results and Strategy 5

6 BANKING INDUSTRY Quarterly Net Income (In billions of CLP,%) ROAE (Net income to average shareholders equity) % ,6% 12,3% +30 bps 8,6% 14,0% 13,9% Loans 1 (In billions of CLP,%) +5.0% Consumer non-performing loans 1 (NPLs to average loans,%) +13 bps ,89% 1,90% 1,94% 2,13% 2,02% 1. Excludes foreign subsidiaries 6

7 AGENDA I. Chilean Economy II. Banking Industry Overview III. Banco de Chile 2Q17 Results and Strategy 7

8 2Q17 BCH RESULTS Quarterly Net Income and ROAE (In billions of CLP,%) % 18% 20% 21% 19% 22% 20% 17% 19% 22% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Full year 2015 Net Income: $559 Bn. ROAE: 21% Inflation 1 : 4.1% Corporate tax rate: 22.5% Full year 2016 Net Income: $552 Bn. ROAE: 20% Inflation 1 : 2.8% Corporate tax rate: 24.0% YTD 2017 Net Income: $300 Bn. ROAE: 20% Inflation 1,2 : 2.4% Corporate tax rate: 25.5% Δ UF (QoQ) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q -0.02% 1,46% 1.46% 1.11% 0.71% 0.93% 0.66% 0.47% 0.47% 0.73% 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, digital contact channels and business intelligence tools Continual improvements in productivity Proven risk management practices 9

10 SETTING THE STAGE FOR GROWTH Steadily increasing our customer base, providing the foundation for revenue growth Personal Banking Customers (Thousands current account holders, local currency) Loans by Segment (In billions of CLP) Retail Loans 9% YoY % Customer Growth 1 : 1. BCH: +6.4% 2. BCI: +4.7% 3. San: +4.4% 4. Itaú: +3.8% 24,698 25, % +12.4% -2.5% 690 2Q16 2Q17 Wholesale SME Personal Deposits (Average, in billions of CLP) YoY DDA - Personal Banking DDA - Wholesale Core Deposits 2 Apr Sep Dec Mar Apr % % % Variation YoY personal current accounts, April Itau includes Corpbanca 2. Core deposits are determined by using internal models that consider behavioral run-off assumptions for demand and time deposits. 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 10

11 ROBUST OPERATING INCOME Consistently growing customer income by managing spreads proactively and improving fee income Quarterly operating income 1 (In billions of CLP) Adj. Operating Income 2 8% YoY % YoY +8.1% YoY Margin evolution (%) 4,35% 4,43% 4,35% 4,25% 4,46% 2,91% 2,96% 3,01% 3,00% 3,07% NIM Spread Net interest income (In billions of CLP) +6.0% bps +16bps Customer income - Retail Customer income - Wholesale Non-customer income UF (QoQ) 0.93% 0.66% 0.47% 0.47% 0.73% Net fees (In billions of CLP) +9.8% Non-customer income Includes income from the contribution UF GAP position and treasury activities. 2.- Adjusted 2Q16 for one-time sales of AFS instruments of Ch$60.2 bn that resulted in the recognition of unrealized mark-to-market gains in our P&L. 11

12 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, digital contact channels and business intelligence tools Continual improvements in productivity Proven risk management practices

13 SUPERIOR DIGITAL INITIATIVES THAT MAKE A DIFFERENCE LOYALTY PROGRAMS 59 BCH BCI BSAN NET PROMOTER SCORE CADEM, June 2017, % 03 MOBILE BANKING World-class suite of mobile Apps CUSTOMER EXPERIENCE DIGITAL BANKING BUSINESS INTELLIGENCE BCH BSAN BCI 04 MOBILE APP SATISFACTION CADEM, 1Q17, % 05 BUSINESS INTELLIGENCE Know your customer Building stronger relationships Proactive retention 06 CRM Project Three year project Developed internally in the bank and tailored to our needs 13

14 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, digital contact channels and business intelligence tools Continual improvements in productivity Proven risk management practices

15 FIRM FOCUS ON COST CONTROL Optimization of Commercial and Operational Processes has permitted us to continue controlling costs effectively while posting important improvements in productivity Operating expenses (In billions of CLP) % Branch and Employee Evolution -5.5% -4.0% % YoY 2Q16 2Q17 2Q16 2Q17 Employees Branches % YoY Productivity (In billions of CLP) Productivity + 9% YoY Personnel Administration & Others 1,66 1,68 1,74 1,80 1,83 Efficiency Ratio (%) 43.2% 46.2% 45.4% 45.5% 44.0% Total Loans by Employee 15

16 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, digital contact channels and business intelligence tools Continual improvements in productivity Proven risk management practices

17 SUSTAINABLE LONG-TERM FOCUS ON RISK MANAGEMENT Using business intelligence tools combined with improvements in operational models has allowed us to control risk even more effectively Quarterly Loan Loss Provisions (In billions of CLP) 92,9 87,3 Variation in LLP by Concept (In billions of CLP) 92,9 52,1 5,1 5,1 1,5 9,6 62,1 1,51% 64,7 1,39% 63,1 62,1 2Q16 Additional Provisions Volume & Mix Deteration Exchange Rate Regulatory Changes 2Q17 1,05% 1,00% 0,98% Variation in LLP by Product (In billions of CLP) 92,9 Total LLP Ratio 52,1 10,6 10,9 0,6 0,8 62,1 2Q16 Additional Commercial Contingent Provisions and Other Mortgage Consumer 2Q17 17

18 A SUCCESSFUL SECOND QUARTER 2017 Net Income ROAE Operating Income Net Fees and Commissions $160 bn 21.7% $448.2 bn $88.2 bn +5.8% (YoY) 6 bps (YoY) +7.8% (YoY Adj.) +9.8% (YoY) Loan Loss Provisions 0.98% Operating Expenses $197.4 bn Basel Ratio 13.9% -53 bps (YoY) -4.0%(YoY) +51 bps (YoY) 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