Financial Results. February 4 th, Banco de Chile Full Year 2015 & Q4 15

Transcription

1 Financial Results February 4 th, 2016 Banco de Chile Full Year 2015 & Q4 15

2 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO Banco de Chile at the top of the industry 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 2

3 2015 Financial Performance and Achievements Accomplished through the successful implementation of our strategy Leadership in results $559 billion and ROAE 21% Good growth figures: o Loans +12% YoY o Demand Deposits +20% YoY o Fees +12% YoY Solid risk indicators: o LLP Ratio 1.3% o NPL Ratio 1.2% Firm cost control: o Efficiency 44% Increase of 26 bps in Total Market Share to 18.3% Recognized as best digital bank and most innovative bank in Chile New alliances with Delta Airlines and Sky Airlines Increasing bank penetration in Chile Deepen our commitment to entrepreneurship 3

4 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 4

5 Economy Below-trend growth amid a resilient labor market Output (YoY%) 6 Labor Market (% and YoY%, respectively) Unemployment Rate Real Wages e 2016e 0 dic-12 dic-13 dic-14 dic-15 Trade Balance (USD Bn, rolling year) 10 Current Account (%GDP) dic-12 dic-13 dic-14 dic-15 Source: Central Bank of Chile, National Statistics Institute e 5

6 Economy Above-target inflation led to interest rate hikes Inflation (YoY%) Tradable vs non Tradable CPI (YoY%) Tradables non Tradables e 0-2 dic-12 dic-13 dic-14 dic-15 Copper and Exchange Rate (CLP/USD and USD per Pound, respectively) CLP Copper (right) Monetary Policy Rate (%) ene-12 ene-13 ene-14 ene-15 ene-16 Source: Bloomberg, Central Bank of Chile, National Statistics Institute. 2 dic-12 dic-13 dic-14 dic-15 6

7 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 7

8 dic-14 Banking Industry Slow economic expectations and low confidence impact loan growth ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 Industry Loan Growth (Var. Real YoY) Net Income Variation (In billions of CLP) Commercial Consumer Mortgage Total Net Income , % 10.3% 10.7% 10.5% 10.5% Op. Income 205 Risk % 6.0% 6.4% 4.7% 4.9% 4.9% 3.9% Op.Expenses % 3.4% 4.8% 4.8% 3.6% 2.7% 3.0% 2.9% Taxes 218 Net Income ,209 Note: Excludes loans from subsidiaries abroad, Ripley Bank and Cencosud/Scotiabank Consolidation in Dec-13 and May-15 respectively. 8

9 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 9

10 2015 BCH Results $559 CLP Net Income and 21% ROAE for 2015 Quarterly Net Income and ROAE (In billions of CLP, %) Full year 2013 Net Income: $514 Bn. ROAE: 24% Inflation 1 : 2.05% Full year 2014 Net Income: $591 Bn. ROAE: 24% Inflation 1 : 5.65% Full year 2015 Net Income: $559 Bn. ROAE: 21% Inflation 1 : 4.07% % 23% 25% 24% 25% 26% 26% 24% 18% 26% 20% 21% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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% 1Q 2Q 3Q 4Q -0.02% 1.46% 1.46% 1.11% 1.- UF Variation 10

11 2015 BCH Results Solid loan and deposit growth offsets lower non-customer income Operating Revenues (In billions of CLP) 1,646 1, Q Q Q Q Operating Revenue Breakdown (In billions of CLP) 1,646 1, ,172 1, Non-customer income Q Q15 Customer income Total Loans (In billions of CLP) 21,877 24, % Market Share 18.3% Market Share Demand Deposits (In billions of CLP) 6, % Market Share 8, % Market Share Basel Ratio (% of RWA) 13.3% 12.6% 2.9% 2.6% Tier % Tier %

12 2015 BCH Results Diversified and stable fee generation Fee Breakdown & YoY Variation Fee Composition (In billions of CLP, except %) (% of Total Net Fees) 47% 40% Subsidiaries Retail Wholesale & Treasury 13% Mutual Funds % Current & Sight accounts, overdrafts & ATMs % Insurance +7.7 % Credits & Collections +4.4 % Letter s of credit, guarantees & foreign trade Cash Management & Custody Services +7.6 % % Financial Advisory Services % Stock Brokerage % Credit Cards % Others % Total 2014: $ 272 Bn 2015: $ 306 Bn % 12

13 2015 BCH Results Prudent risk policy explains increase in LLP Loan Loss Provisions (In billions of CLP) Annual Variation in LLP (LLP in billions of CLP and LLP ratio in %) % 1.32% 4Q Q Q Coverage Ratio (Times) 1Q

14 2015 BCH Results Cost base increase mainly due to inflation and peso depreciation Operating Expenses (In billions of CLP) Efficiency Ratio (Operating Expenses/Operating Revenues, %) Q % 47.2% 3Q % 44.1% 2Q Q BCH Local Peers* Note: 4Q14 expenses include $40 Bn. Due to our collective bargaining agreement. * Santander, BCI, CorpBanca, and Itau 14

15 2015 BCH Profitability BCH competitive advantages result in leadership position Return on Average Equity (ROAE) %, Times over Peers Return on Average Assets (ROAA) %, Times over Peers Banco de Chile s Multiple over Peers 0.8x 1.1x 1.2x 1.4x 1.3x 1.3x 1.3x 0.9x 1.1x 1.2x 1.4x 1.4x 1.4x 1.5x 22.6% 19.1% 27.8% 26.9% 25.7% 23.5% 24.7% 21.4% 24.5% 21.7% 17.9% 17.5% 18.7% 16.3% 1.7% 1.5% 2.2% 2.1% 2.1% 2.1% 2.2% 2.0% 1.7% 1.4% 1.5% 1.6% 1.9% 1.3% Local Peers 1 Source: SBIF. 1.- Santander, BCI, CorpBanca, and Itau 15

16 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO Banco de Chile at the top of the industry 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 16

17 AGENDA 2015 BCH Financial Results 1. Introduction - Arturo Tagle, CEO Banco de Chile at the top of the industry 2. Economic Environment 3. Banking Industry 4. BCH Financial Results 5. Q&A Session 6. Closing Remarks 17

18 Five competitive advantages that make the difference SOLID BRAND POSITIONING BUSINESS SCALE STRONG INVESTMENT GRADE SUPERIOR RISK MANAGEMENT ADVANTAGEOUS FUNDING STRUCTURE 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