Results for the Second Quarter of Pablo Mejia Head of Investor Relations. Hosted by. August 4, 2010

Transcription

1 Results for the Second Quarter of 2010 Hosted by Pablo Mejia Head of Investor Relations August 4, 2010

2 2 Agenda Chilean Economy Operating Segment Highlights 2Q10 Financial Results Key Balance Sheet Figures

3 3 Chile: First Semester 2010 Highlights 1. Excellent economic outlook i. GDP growth rebounded more quickly than expected ii. CPI rose 1.7% during the semester iii. 100 bp increase in the monetary policy interest rate (as of July) iv. Unemployment dropped to 8.5% in June 2. Strong banking sector results i. Loans grew by 7.5% year-on-year ii. First semester net income rose 59.2% year-on-year 3. Chilean IPSA index rose 7% during 2Q10, breaking historic records

4 4 BCH: Operating Segment Highlights 2Q10 Positioned for growth Retail Banking Strong y/y performance with growth of 15.9% in mortgage loans, 7.9% in consumer loans and 13.9% in commercial loans Provision expenses down 27.5% as compared to 2Q09 Net income before taxes of Ch$34.5 bn, up 26.4% Wholesale Banking Steady y/y loan growth of 6.1% Firm increase in fee revenue of 23.7% Provision expenses down by 67.1% as compared to 2Q09 Net income before taxes of Ch$24.6 bn, up by 266.0% Treasury Net income before taxes of Ch$45.3 bn, up by 19.1% US$480 million, long-term subordinated bond placement Subsidiaries (Stock Brokerage, Mutual Funds, Insurance Brokerage, and Banchile Citi Global Markets) Stock brokerage transactions up 11.7% y/y Assets under management up 28.1% y/y Insurance premiums up 19.3% y/y Investment banking area placed the second Huaso Bond

5 5 BCH: Net Income (Billions of Ch$) Quarterly Net Income & ROAE 2Q10/2Q09 Highlights ROAE* Net Income +48% Higher net interest income % 30.0% Consistent fee revenue growth 21.2% Lower loan loss provisions Solid return-on-average-equity of 30.0% 2Q09 1Q10 2Q10 *ROAE does not include provision for minimum dividends

6 6 BCH: Operating Revenues (Billions of Ch$) Total Operating Revenues ( Year-on-Year) Distribution of Net Interest Revenues Q09 Net Interest Revenue Net Fees Net Fin. Op & Fx Other Revenues 2Q10 2Q09 1Q10 2Q10 Av. Int Assets: TCh$14.6 TCh$14.9 TCh$15.2 NIM : 4.82% 4.94% 5.17% Var. UF -0.13% 0.27% 0.97% Retail Treasury Wholesale Subsidiaries and others

7 7 BCH: Credit Risk (Billions of Ch$) Provisions Expenses Total Provision Expenses by Segment % % 2Q09 22% 2Q10 2.0% 2.1% 1.5% 1.6% 1.1% 62% 78% 2Q09 3Q09 4Q09 1Q10 2Q10 1 Provisions Downgrade Provisions to Avg. Loans Retail Banking Wholesale Banking (1) Downgrade of certain wholesale debtors

8 8 BCH: Operating Expenses (Billions of Ch$) Total Operating Expenses ( year-on-year) Total Operating Expenses by Segment Q09 2Q % 15% 4% 14% 19% 60% 22% 60% 2Q09 Staff Admin. Dep. & Amort Other 2Q10 Retail Banking Treasury & Money Market Wholesale Banking Subsidiaries

9 9 BCH: Loan portfolio (Trillions of Ch$) Total Loan Portfolio Breakdown of Retail Loan Portfolio % % Q09 1Q10 2Q10 2Q09 1Q10 2Q10 Commercial Mortgage Consumer

10 10 BCH: Funding Structure (Billions of Ch$) Current Account Balances 1 Funding Structure 2 1,746 1,698 1,794 1,913 2,153 Banco de Chile Banking System - ExBCH +23% 994 1,038 1, % 1,179 1,251 3% 8% 9% 8% 27% 8% 11% 9% 9% 17% 46% 45% 2Q09 3Q09 4Q09 1Q10 2Q10 Companies Individuals Sight Deposits Financial Institutions Other3 Time Deposits Bonds Equity (1) Quarterly monthly average balance (2) As of June 30, 2010 (3) Includes mortgage bonds, repurchase agreements and other miscellaneous items Source: SBIF

11 11 BCH: Strong Capital Base (Billions of Ch$) Capital Adequacy Ratios (%) Effective Equity % 1 1, % 2, % 1 1Q10 2Q10 1Q10 2Q10 Basic Capital / Total Assets Total Capital / Risk-Adjusted Assets (1) SBIF regulatory requirements

12 12 BCH: Solid Share Price Evolution Aug $66.50 pesos/share +57.8% Jan $42.15 pesos/share +31.2% +13.5% +21.2% BCH IPSA Source: Bloomberg

13 13 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 after completion of this offering to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

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