27 January 2016 CHILE. January December 2015

Transcription

1 27 January 2016 CHILE January December 2015

2 Disclaimer Banco Santander Chile caution that this presentation contains forward looking statements within the meaning of the US Private Securities Litigation Reform Act of These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America, could adversely affect our business and financial performance. Note: The results information contained in this presentation has been prepared according to Spanish accounting criteria and regulation in a manner applicable to all subsidiaries of the Santander Group and as a result it may differ from the one disclosed locally by Banco Santander Chile. The information contained in this presentation is not audited. Nevertheless, the consolidated accounts are prepared on the basis of generally accepted accounting principles. All figures presented are in nominal terms. Historical figures are not adjusted by inflation. 2

3 Agenda Macro-economic environment and financial system Strategy and business Results Appendix

4 Macro-economic environment Economic growth is expected to stay stable at 2% in Annual GDP Growth (%, real) Central Bank monetary policy (%) (e) 2016 (e) 2017 (e) (e) 2017 (e) Inflation (annual change UF 1, %) Average exchange (Ch$ / EUR) (e) 2017 (e) (e) 2017 (e) Source: Central Bank of Chile and Santander estimates 4

5 Macro-economic environment Non-mining sectors to lead growth in 2016 and 2017 Internal Demand (YoY growth, %) Growth by sectors (YoY growth, %) (e) 2017 (e) Unemployment (yearly average, %) (e) 2017 (e) Source: Central Bank of Chile and Santander estimates 5

6 Financial system: Loan and deposit growth Financial system with stable growth rate trends Total loans (Constant bn) Stable loan growth rate in 2015 YoY (%) 10.6% 9.4% 10.2% 11.5% 8.8% Growth of consumption and non-copper export sectors drives loan growth D'14 M'15 J'15 S'15 N'15 Total customer funds 1 (Constant bn) YoY (%) % 10.9% 12.2% 11.6% 4.8% High levels of liquidity in the local market drives growth of customer funds, especially demand deposits that grow 14% YoY as of Nov 14 D'14 M'15 J'15 S'15 N'15 Source: Source: Superintendency of Banks of Chile. Excludes Corpbanca Colombia (1) Includes demand deposits, time deposits and mutual funds 6

7 Agenda Macro-economic environment and financial system Strategy and business Results Appendix

8 Our Franchise Santander Chile is the nation s leading bank Business and Results Constant 2015 Var. YoY Gross Loans ( bn) % Deposits ( bn) % Consolidated profit ( MM) % Attributable profit ( MM) % Network and Customers 2015 Mkt. share 1 Total customers (MM) % 2 Branches (#) % ATMs (#) 1, % Market Share 1 Dec 15 Loans 19.1% Deposits 18.3% Checking accounts 22.5% Bank credit cards % Source: Superintendency of Banks of Chile (1) As of Dec or the latest figure available. (2) Market share in terms of checking account holders (3) Market share in terms of credit card purchases 8

9 Strategy 3 objectives for healthy growth / higher profitability I. Growth focused on segments with highest net contribution II. improve customer loyalty and quality of service Optimizing the risk return relation III. and managing risks and capital conservatively Creating a bank that is Simple Personal Fair 9

10 Customers (metrics for Investor Day 2016 targets) Loyal clients: Clients with checking account plus 2-4 products depending on the segment and with intense usage measured according to an internal point system. This definition has been redefined, and our historic figures reflect the new definition applied Retail loyal customers (ths) +4.8% Dec'14 Dec'15 Individual client base growing with greater client loyalty, especially in high income (+9.8%) Loyal SMEs and Corporate customers (ths) 35 Dec' % 39 Dec'15 Strong rise in client loyalty among SMEs/Corporates Online digital customers (ths) % 918 Leading the system in digital banking Dec'14 Dec'15 10

11 Total loans performance (1) At period end rate as of Dec (2) Loans to individuals includes consumer, mortgage and commercial loans to individuals (3) Total loans amount includes non-segmented loans Loan growth focused on segments with highest risk adjusted return Total gross loans (Constant MM 1 ) 11.0% 0.1% 30,054 31,469 32,885 33,313 33,350 D'14 M'15 J'15 S 15 D 15 Dec 15 YoY (%) QoQ (%) Total Individual 2 17, Mortgage 9, Consumer credit 5, Total Corporates 15, SMEs 4, Middle Market 7, Corporates 3, Total Loans 3 33,

12 Total customer funds performance Positive growth of non-interest bearing demand deposits Total deposits (Constant MM 1 ) 9.4% 3.4% Dec 15 YoY (%) QoQ (%) 22,252 22,563 22,896 23,545 24,347 Demand 9, Time 14, Total deposits 24, Mutual funds 5, D'14 M'15 J'15 S 15 D (1) At period end rate as of Dec. 2015

13 Agenda Macro-economic environment and financial system Strategy and business Results Appendix

14 Net interest income and spreads Lower inflation in 2015 partially offset by strong deposit spreads Loan spreads (%) Net Interest Income (Constant MM 1 ) Retail Banking Total Loans 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Deposit spreads (%) Retail Banking 4Q'14 1Q'15 2Q'15 3Q'15 4Q' Inflation UF 1.9% -0.02% 1.5% 1.5% 1.1% Total Deposits 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 14 (1) At average exchange rate as of December 2015 (12M 15)

15 Net fees Fees up 5.0% led by bancassurance and credit & debit card fees Net fees (Constant MM 1 ) YoY(%) QoQ(%) Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Cards % -10.5% Bancassurance % -4.1% Cash Management % -10.3% Mutual funds % -1.6% Foreign trade % -19.7% Checking accts % -1.9% Brokerage % -16.6% Others % -5.4% Total % -7.6% 15 (1) At average exchange rate as of December 2015 (12M 15)

16 Gross income Lower net interest income due to lower inflation offset by loan and deposit growth, fee growth and treasury activities Gross income (Constant MM 1 ) YoY(%) QoQ(%) Net Interest Income 1,791 1, Net Fees Subtotal 2,151 2, Other Gross income 2,336 2, Q'14 1Q'15 2Q'15 3Q'15 4Q'15 (1) At average exchange rate as of December 2015 (12M 15) (2) Other includes Gains (losses) on financial transactions and Other operating income 16

17 Operating expenses Higher costs due to those indexed to forex, salaries and amortisation Operating expenses (Constant MM 1 ) YoY(%) QoQ(%) General admin. expenses Depreciation and amortisation Operating expenses 1, Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Efficiency ratio (with amortisation) 43.0% 39.5% Number of branches Number of employees 12,454 12, (1) At average exchange rate as of December 2015 (12M 15)

18 (1) At average exchange rate as of December 2015 (12M 15) (2) Cost of credit = 12 month loan-loss provisions / average lending. Calculated in current euros Net operating income after loan-loss provisions (LLPs) LLPs grow 4.2% YoY and asset quality improves in 2015 LLPs and Cost of credit (Constant MM 1 ; %) Cost of credit % 1.74% 1.68% 1.68% 1.65% YoY(%) QoQ(%) Net Operating Income 1,332 1, LLPs Net LLPs Net op. income after LLPs Q'14 1Q'15 2Q'15 3Q'15 4Q'15 NPL ratio 5.6% 6.0% NPL Coverage ratio 54% 52% 18

19 Attributable profit Positive results from our client activities offset by the impact of lower inflation on margins and higher taxes Attributable profit (Constant MM 1 ) YoY(%) QoQ(%) Profit before taxes Tax on profit Net income Attributable profit Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Effective tax rate 14.8% 6.9% 19 (1) At average exchange rate as of December 2015 (12M 15)

20 Conclusions Market Environment & Financial System Economic growth around 2.0% is expected in 2016 and 2017 Inflation expectations decrease to 3.4% for Rates to increase 25bp to contain inflation Loan growth should remain stable at 8-9% in 2016 Strategy & Business Loan growth focused on segments with highest risk adjusted return Strong growth of core deposits Customer base / loyal customers growing at a healthy pace Gross income up 1.9%YoY. Positive evolution of deposit spreads and recovery of fee income offset by the impact of lower inflation on margins Results Higher costs due to those indexed to forex, salaries and amortisation. Very low efficiency ratio (43.0%) Asset quality and cost of credit improving 20

21 Agenda Macro-economic environment and financial system Strategy and business Results Appendix

22 Balance sheet EUR million. Constant currency* Variation Amount % Loans and credits* 32,338 29,111 3, Trading portfolio (w/o loans) 3,144 2, Available-for-sale financial assets 2,668 2, Due from credit institutions* 4,579 3, Intangible assets and property and equipment Other assets 2,876 2, Total assets/liabilities & shareholders' equity 45,960 40,749 5, Customer deposits* 24,347 22,252 2, Marketable debt securities* 6,504 6, Subordinated debt Insurance liabilities Due to credit institutions* 5,886 4,186 1, Other liabilities 5,280 4,228 1, Stockholders' equity** 2,980 2, Off-balance-sheet funds 7,370 6, Mutual funds 5,422 5, Pension funds Managed portfolios 1,948 1, Customer funds under management 39,184 36,441 2, * As of * Includes all stock of concept classified in the balance sheet ** Capital + reserves + retained profit + valuation adjustments 22

23 Income statement EUR million. Constant currency* Variation Amount % Net interest income 1,791 1,812 (21) (1.2) Net fees Gains (losses) on financial transactions Other operating income** (7) (36.5) Gross income 2,336 2, Operating expenses (1,004) (905) (98) 10.8 General administrative expenses (926) (840) (86) 10.3 Personnel (568) (498) (70) 14.0 Other general administrative expenses (358) (342) (17) 4.9 Depreciation and amortisation (77) (65) (12) 18.1 Net operating income 1,332 1,387 (55) (4.0) Net loan-loss provisions (567) (544) (23) 4.2 Other income 3 (25) 29 Profit before taxes (50) (6.1) Tax on profit (114) (57) (57) 99.9 Profit from continuing operations (106) (14.0) Net profit from discontinued operations Consolidated profit (106) (14.0) Minority interests (41) (17.1) Attributable profit to the Group (65) (12.5) * As of exchange rate 2015 ** Including dividends, income from equity-accounted method and other operating income/expenses 23

24 Quarterly income statements EUR million. Constant currency* 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 Net interest income Net fees Gains (losses) on financial transactions Other operating income** Gross income Operating expenses (213) (224) (232) (236) (231) (248) (252) (273) General administrative expenses (193) (212) (214) (221) (213) (230) (233) (251) Personnel (111) (127) (127) (133) (124) (141) (143) (160) Other general administrative expenses (82) (85) (87) (88) (89) (89) (89) (91) Depreciation and amortisation (20) (12) (18) (16) (18) (18) (19) (22) Net operating income Net loan-loss provisions (121) (124) (138) (161) (128) (119) (157) (164) Other income (7) (3) 3 (19) 6 (3) (4) 4 Profit before taxes Tax on profit (34) (29) (25) 30 (42) (26) (27) (19) Profit from continuing operations Net profit from discontinued operations Consolidated profit Minority interests Attributable profit to the Group * As of exchange rate 2015 ** Including dividends, income from equity-accounted method and other operating income/expenses 24

25 Thank you Nuestra Our purpose misión to es help contribuir people al and progreso de las businesses personas prosper. y de las empresas. Nuestra Our culture cultura is based basa on the en la belief creencia that de que everything todo lo we que do hacemos should debe ser