Corporate Investor Presentation. As of March 31, 2018

Transcription

1 Corporate Investor Presentation As of March 31, 2018

2 CHILE Macro Environment

3 Chile: CHILE: General GENERAL Overview OVERVIEW SOUND AND PRUDENT POLICIES Long Term Credit Rating AS A RESULT OF: Strong policy framework (independent Central Bank, inflation targeting since 1989, and counter cyclical fiscal rule since 2001). Strong institutional foundation. Strong resilience to recent international events. Best performance in LATAM during the last 30 years; per capita GDP is 50% above LATAM average. NET FISCAL DEBT S&P Moody s Fitch A+ Aa3 GROSS FISCAL DEBT (Debt / GDP, %) (Debt / GDP, %) A STRONG RELATIVE POSITION Global Competitiveness Index World Economic Forum #1st in LATAM #33 Out of 137 Countries Soundness of Banks World Economic Forum #1st in LATAM #5 Out of 137 Countries Economic Freedom Index Heritage Foundation 2018 #1st in LATAM /3rd in America #20 Out of 180 Countries Best Countries for Business Forbes 2018 #1st in LATAM #33 Out of 150 Countries 3 Chile Emerg. Ec. Adv. Ec.

4 CHILE: GENERAL OVERVIEW AN ECONOMY OPEN TO THE WORLD Free Trade Agreements with 85% Global GDP 1 Foreign Direct Investment 5% of GDP 1 Trade Volume 56% of GDP 1 GDP BY SECTOR (Main sectors, % of total, 2016) FDI INFLOWS (Stock, %, 2016) USA 15% Canada 9% Netherlands 8% Spain 8% UK 7% Brazil 4% Japan 2% FDI IN CHILE (Stock, %, 2016) Mining 28% Financial Services 28% Electricity, Gas & Water 9% Manufacturing 9% Transport 6% Retail 3% Agriculture Transport Construction Retail Mining Manufacturing Others Services 3% 5% 7% 9% 10% 10% 21% 34% EXPORTS BY: SECTOR DESTINATION (% of total, 2016) (% of total, 2017) GDP PER CAPITA (PPP, Thousands of USD, 2017) Chile Mexico Brazil Colombia Peru Wine Forestry Machinery Pulp Salmon Chemicals Fruit Other Proc. Food Copper Grain 1% 3% 4% 4% 5% 6% 7% 9% 14% Total Exports: USD 60 Bn 46% Latam 14% Rest Asia 23% Other 6% US 14% China 28% Europe 15% 4 Source: International Monetary Fund (IMF) & Central Bank of Chile (1) As of December 2016

5 CHILE: EVOLUTION OF GDP «Retail and service sectors continue to lead the way, while construction still underperforms. ««Private consumption continues to be the main support for GDP growth. «GDP BY ECONOMIC SECTOR (YoY, %) (YoY, %) GDP BY EXPENDITURE GDP Services Manufacturing 1 Mining Retail Construction Public administration Agri, forestry, fishery Other Q-17 2Q-17 3Q-17 4Q GDP Total Consumption Durable Goods Non-durable Gross Investment Construction Machinery Exports Imports Q Q Q Q Source: Banco de Chile,SBIF,Central Bank of Chile 1- Includes Food; Beverage and tobacco; Textile, clothing, leather and footwear; Wood and furniture; Woodpulp, paper and printed materials; Refined petroleum; Chemicals, rubber and plastic; Non-metallic minerals and base metals; Metallic products, machinery and equipment. 2- Includes Electricity, gas, water and waste management; Restaurants and hotels; Transport; Information and communications.

6 CHILE: EVOLUTION OF GDP There are signals pointing to higher growth in the following quarters GDP EXPECTED GDP GROWTH 1 (YoY, %) (YoY, %) May-17 Jun-17 Jul-17 Aug-17 Sept-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr f MONTHLY GDP BREAKDOWN OF MONTHLY GDP (Seasonally adjusted, 3mth moving avg. annualized variation) (Contribution to GDP growth, %) 9.7% 8.6% 6.6% 6.4% 5.2% 4.7% 3.8% 3.0% 1.2% 3.5% 2.7% -0.1% -0.7% -1.7% -2.1% Non mining Mining Jan-17 Feb-17 Mar-17 Apr-17May-17 Jun-17 Jul-17 Aug-17Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar Central Bank of Chile expectations survey

7 CHILE: LABOR MARKET Unemployment remains at low levels but thanks to an important shift in the patterns of job creation UNEMPLOYMENT RATE WAGE INDEX EMPLOYMENT EVOLUTION (%) (%) (YoY, %) Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Mar-18 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Mar-18 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Nominal YoY Real YoY Self Employed Total Wage Employed 7 Source: Bloomberg, Central Bank of Chile

8 CHILE: INFLATION Despite the tight labor market, lower overnight rate and better economic conditions, CPI has trended downwards mainly due to the stronger CLP CPI AND EXCHANGE RATE (YoY, %) (YoY, %) TRADABLE AND NON-TRADABLE CPI Dec-15 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Mar-18 Dec-15 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Mar-18 US$/ CLP CPI Tradable Non-tradable 8 Source: Bloomberg, Central Bank of Chile

9 CHILE: ECONOMIC PROJECTIONS SUMMARY OF PROJECTIONS (YoY, %) f GDP Total Consumption Gross investment Exports Imports CPI Monetary Policy Rate (Dec. %) Central Gov Balance (% GDP) n/a Gross Debt (% PIB) (IMF) n/a Current Account (% GDP)

10 CHILE: Banking Industry

11 SNAPSHOT OF CHILEAN BANKING INDUSTRY As of March Banks Operating in Chile 8 locally controled banks 11 foreign controlled banks 1 state owned bank 94% Loans to GDP Avg : 15.8% ROAE 1.9% NPLs 50.7% Cost to Income TOTAL HOUSEHOLD DEBT TO INCOME % 17% 24% 43.7% 18% 26% 45.4% 19% 27% DEBT SERVICE RATIO 1 20% 17% 18% Balance Sheet Structure 3 US$373 billion in Assets US$263 billion in Loans US$341 billion in Total Liabilities US$31 billion in Equity 2Q15 2Q16 2Q17 3Q15 3Q16 3Q17 Mortgage loans Other loans BASEL RATIO RISK WEIGHTED ASSETS DENSITY 2 As of February 2018 As of September, 2017 Facts 2,177 Branches nation wide 4 7,641 ATMs 4 4.4mm Total Checking accounts mm Debit cards mm Credit cards mm Total Work Force in Chile -0.5% Other 13.8% 3.0% Subordinated Bonds 0.3% Voluntary Provisions 11.0% Tier I Tier I + Tier II 75% 63% 60% 50% Chile Mexico Peru Brazil H17 Chilean Central Bank Stability Report. / 2. Source: HSBC Chilean Banks initianing coverage report, November / 3. Fx rate: US$ 1.00 = CLP / 4. As of February / 5. As of January 2018.

12 BANKING INDUSTRY: TRACK RECORD OF PROFITABLE GROWTH GDP AND TOTAL LOAN GROWTH IN CHILEAN BANKING INDUSTRY (1) (Var. Real YoY) CAGR : LOAN ELASTICITY / GDP = 2X (2) Total Loans Consumer Mortgage Commercial 10.3% 13.5% 13.5% 10.0% 10.6% 13.7% 15.0% 13.4% 10.6% 12.9% 6.0% 3.3% 1.6% 3.1% 3.3% 4.1% 7.2% 5.7% 6.3% 4.9% 3.5% 0.5% 6.1% 5.8% 6.1% 9.7% 5.3% 7.6% 4.0% 6.4% 4.7% 2.4% 2.9% 1.8% 2.3% 1.3% 1.5% 7.4% 3.7% -1.6% f ROAE: 15.7% 13.5% 14.9% 15.3% 16.4% 16.8% 16.0% 14.3% 15.7% 19.3% 18.8% 15.7% 16.0% 18.2% 14.7% 11.6% 12.4% LLP Ratio: 1.5% 1.5% 1.3% 0.8% 0.6% 0.8% 1.0% 1.4% 1.8% 1.3% 1.2% 1.3% 1.3% 1.3% 1.2% 1.1% 1.1% GDP Total Loans Excludes subsidiaries abroad Linear average Note: Real loan growth using the value of the UF at the end of each year and includes certain adjustments for comparison purpsoses Source: Chilean Central Bank, SBIF

13 BANKING INDUSTRY: SUBSTANTIAL GROWTH POTENTIAL LOAN PENETRATION 1 % of 2016 GDP, As of December 2017 BREAKDOWN OF COMMERCIAL LOANS % of 2016 GDP, as of December 2017 Total Loans Number of Debtors 94% 1,375,180 CONSUMER MORTGAGE 13% 27% COMMERCIAL LOAN VOLUMES BREAKDOWN BY SIZE 21% 0.2% 1.1% COMMERCIAL 54% 62% US$ 151 Bn 17% 98.7% Debtors: < US$30,000 Debtors: US$ to US$300,000 Debtors: > US$300, Source: Banco de Chile,SBIF. 1. Includes assets held by subsidiaries

14 BANKING INDUSTRY: SUBSTANTIAL GROWTH POTENTIAL HOUSEHOLD DEBT 1 (Total, % of net disposable income, 2015) Rus LTU HUN LVA SVN POL CHL CZE SVK EST ITA AUT DEU FRA USA BEL GRC ESP FIN JPN PRT GBR KOR CAN SWE IRL CHE AUS NOR NLD DNK LATAM CONSUMER LOAN PENETRATION 2,3 (2016, % of GDP) (2016, % of GDP) LATAM MORTGAGE LOAN PENETRATION 2, Brazil Colombia CHILE Peru Mexico Argentina CHILE Brazil Colombia Peru Mexico Argentina Source: data.oecd.org 2. Source: HSBC Chilean Banks initiating coverage report, November Chile: % of loans as of September 2017 to 2016 GDP.

15 INTRODUCTION to Banco de Chile

16 HISTORY OF SUCCESS SINCE 1893 Banco de Chile has always been closely linked to Chile s history. Since its creation in October 1893 it has been a key player in the industry, recognized for its contribution to Chile s development. MARKET CAPITALIZATION OF BANCO DE CHILE 5.5x CLP 250 bn Equity Raising. (US$15.9 bn) CLP 9,805 bn (US$2.9 bn) CLP 1,763 bn) Merger of Banco de Chile and Banco Edwards BCH is listed on NYSE (US$4.6 bn) CLP 2,808 bn Merger of Banco de Chile and Citibank Chile CLP 250 bn Equity Offering. BCH Joins MSCI Index CLP 450 bn LQIF Secondary Offering. BCH Joins DJSI Chile Index Source: Bloomberg. FX Rate December 31st 2017: $ CLP/US$

17 LARGE AND GROWING FREE FLOAT FREE FLOAT EVOLUTION CURRENT 27.5% POST PAYMENT SAOS Subordinated Debt with Central Bank ~44% SIMPLIFIED OWNERSHIP STRUCTURE As of March % Other Local Pension Funds 22.6% 4.9% 50.0% 51.2% LQIF s Direct Stake in Banco de Chile Ergas Group 4.4% 27.1% 50.0% LQIF s Indirect Stake in Banco de Chile 58.2% SM-Chile 12.2% 100% SAOS 28.8% 17

18 SNAPSHOT OF BANCO DE CHILE As of March 2018 Business Scale 1 US$55.0 billion in Assets US$42.8 billion in Total Loans US$31.7 billion in Total Deposits US$5.1 billion in Equity 398 Branches 1,464 ATMs 5 1.2MM Total Debtors 2,5 US$12.4 billion Assets Under Management Listed Locally and Internationally Market Capitalization US$ 16.7 billion 1Q18 Avg Daily Trading Volume US$ 12MM Other Facts HIGHLY PROFITABLE AND STRONGEST PRIVATE BANK ROAE 4 Trailing 12M, March % 19.0% 12.6% 2.2% 86 th percentile Brand Asset Valuator (BAV) 73% Net Promoter Score 22.6% Demand Deposits Market Share 2.5% Cost of funding 3 S&P: A Moody s: Aa3 Risk Ratings 14.2% Basel Ratio 13,908 Total Employees Rating S&P Banco de Chile A Stable Santander A BCI A Negative Itaú-Corp BBB+ 18 Source: SBIF, Bloomberg. / 1. Fx rate: US$ 1.00= CLP / 2. Includes retail and wholesale debtors. / 3. Excludes results from derivatives held for cashflow hedge accounting. 4. ROAE: Net income attributable to equity holders of the parent /avg. Equity. / 5. As of January 2018

19 DIVERSIFIED BUSINESS MODEL TOTAL LOANS As of March % 13.1% 18.9% 26.7% Consumer Finance SMEs Other Installment Loans Retail 62% Mortgages US$ 42.8 bn Wholesale 38% Wholesale INCOME BEFORE TAXES As of March 2018 Retail 58% Treasury & Wholesale 42% 8.9% 49.4% 6.1% 35.6% Subsidiaries Retail US$ 283 mn Treasury Wholesale 19 Source: Banco de Chile,SBIF. Note: CLP/US$ = as of March Information in Chilean GAAP. 1.- Subsidiaries include Banchile Corredores de Bolsa S.A., Banchile Administradora General de Fondos S.A., Banchile. Corredores de Seguros Ltda., Banchile Asesoría Financiera S.A., Banchile Securitizadora S.A., Socofin S.A.

20 STRONG COMPETITIVE ADVANTAGES Brand Customer Base Business Scale Funding Risk Management Corporate Governance 20

21 SOLID COMPETITIVE POSITION: BRAND TOP OF MIND 1 % total mentions, March BRAND ASSET VALUATOR (BAV) 2017, percentile 25.2% 18.9% % % Banco de Chile Santander BCI Itaú- Corp Banco de Chile Santander BCI Itaú- Corp NET PROMOTER SCORE 1 %, March 2018 NET PROMOTER SCORE EVOLUTION Mar-18 ATTRITION RATE Banco de Chile BCI Santander Estado 6.5% 6.1% 6.2% % Mar Source: Banco de Chile,SBIF,Central Bank of Chile 1- Source: CADEM.

22 SOLID COMPETITIVE POSITION: CUSTOMER BASE CUSTOMER BASE 1 Market Share of debtors, January 2018 CURRENT ACCOUNT BALANCE-PERSONAL BANKING In millions of CLP & Market Share in %, January % 15.4% 10.9% 7.4% % +45.4% +36.7% % +54.4% % % Market Share Avg DDA Balance per Account Banco de Chile Santander BCI Itaú-Corp PERSONAL BANKING CUSTOMERS 2 Thousands of current accounts, local currency Banco de Chile Santander BCI Itaú-Corp EVOLUTION OF LOAN SHARE OF WALLET OF NEW CUSTOMERS % CAGR % 20% 40% 38% 41% 37% Personal Banking Consumer Loans SMEs Commercial Loans Jan-16 Jan-17 Jan days 60 days 90 days 22 Source: Banco de Chile, SBIF, Mutual Fund Association. 1. Customer BCH loans to total loans based on SBIF data./ 2.Personal Current Account information as of December 2015, December 2016, November Avg. evolution of new BCH customer based on internal and SBIF data from Sep-17, Oct-17,Nov-17.

23 SOLID COMPETITIVE POSITION: BUSINESS SCALE TOTAL LOANS 1 DEMAND DEPOSITS MARKET SHARE Market Share, as of March 2018 Market Share, as of March % 17.2% 13.8% 22.6% 21.1% 14.2% 10.6% 6.2% Santander Banco de Chile BCI Itaú-Corp Banco de Chile Santander BCI Itaú-Corp NET FEES AND COMMISSIONS ASSETS UNDER MANAGEMENT Market Share, as of March 2018 Market Share, as of March % 20.2% 16.4% 14.8% 9.9% 14.8% 13.5% 7.9% Banco de Chile Santander BCI Itaú-Corp Banco de Chile Santander BCI Estado 23 Source: SBIF, Mutual Fund Association. 1.- Excludes subsidiaries outside Chile. / 2.- Mortgage loan ranking excludes Banco Estado

24 SOLID COMPETITIVE POSITION: FUNDING LIABILITY STRUCTURE % Over Total Assets, as of March 2018 Financial Institutions Equity 3% 9% 10% Other COST OF FUNDING * YTD as of March 2018, Local Currency 3.6% 2.7% 2.8% 2.5% 21% Debt Issued 26% Demand Deposits Banco de Chile Santander BCI Itaú-Corp * Excludes results from derivatives held for cashflow hedge accounting. 31% Savings Accounts and Time Deposits Retail 51% Wholesale 49% BASEL RATIO RWA as of March % 13.8% 2.9% 2.8% 11.3% 11.0% Tier 1 Tier 2 Retail 44% Wholesale 56% 24 Source: SBIF. Information in Chilean GAAP Banco de Chile (*) As of February 2018 Industry*

25 SOLID COMPETITIVE POSITION: RISK MANAGEMENT RENOWED RISK MANAGEMENT BASED ON: COVERAGE RATIO Allowances for Loan Losses / Past-Due Loans Proven capacity for origination and structuring Solid follow-up and collection processes Senior management deeply involved Banco de Chile Santander BCI Mar-18 DELINQUENCY RATIO % Past Due Loans 1 / Total Loans COST OF RISK (% Provision for loan losses / Avg. Loans) 2.66% 2.30% 1.20% 3.17% 2.95% 2.93% 2.34% 2.07% 2.81% 2.39% 2.29% 2.54% 1.68% 1.64% 1.03% 1.14% 1.25% 1.22% 1.15% 0.97% 2.29% 2.09% 2.32% 1.67% 1.19% 1.58% 1.17% 1.86% 1.26% 1.23% 1.66% 1.18% 1.12% 1.04% 0.79% 2.01% 1.84% 1.71% 1.23% 1.34% 1.17% 1.31% 1.70% 1.32% 1.31% 1.10% 1.12% 1.25% 0.92% 1.08% 1.11% 0.88% 0.92% 0.90% Mar Mar Source: Banco de Chile,SBIF,Central Bank of Chile / SBIF. Information in Chilean GAAP. 1.- Loans overdue 90 days or more, including overdue installments, as well as outstanding capital and interests, individual.

26 SOLID COMPETITIVE POSITION: CORPORATE GOVERNANCE SOLID CORPORATE GOVERNANCE PRACTICES SUCCESSFUL PARTNERSHIP WITH Active Board involvement Three active board members 11 board members (2 are independent) 5 risk committees, including weekly sessions of Loan Portfolio Committee 6 monthly business committees Best Practices in pursuant to NYSE and SEC standards Growth of existing businesses Transactional and Multinational Banking Treasury Investment Banking Consumer Finance International Connectivity provide us with significant growth potential to develop: International business opportunities Regional and multinational client development Best practices in internal management processes 26

27 THE BANKING INDUSTRY S CHALLENGE FROM Product Vision Complex Specialized Account Managers Large Branch Network Manual Processes Traditional Branches TO Customer Vision Simple Comprehensive Account Managers Smaller Branches Automated Processes Remote Channels 27

28 CUSTOMER CENTRIC STRATEGY STRATEGIC FOCUS EFFICIENCY & PRODUCTIVITY CUSTOMERS SUSTAINABILITY TRANSFORMATION PILLARS CUSTOMER EXPERIENCE BUSINESS INTELLIGENCE DIGITAL BANKING AND INNOVATION OPTIMIZATION OF COMMERCIAL AND OPERATIONAL MODELS INITIATIVES 28 Improvements in loyalty programs, online sales and opening bank accounts Virtual chat for customers Self-service banking services Personalized pricing model Database in the cloud of potential and preapproved customers New CRM platform, company webpage, company mobile app and manage investments app E-Factoring Improvement in customer service model Optimizing branch network Cost control initiatives

29 DIGITAL TRANSFORMATION ONLINE AND BRANCH TRANSACTIONS Total number of personal banking transactions (MM) EVOLUTION OF ONLINE TRANSACTIONS Total number of personal banking transactions (millions) DIGITAL BANKING % % 43% +1.0% % +36.1% % +16.8% 49% 57% +36.1% 44% 52% +61.1% Mar-17 Mar-18 YoY Mar-17 Mar-18 YoY Online Branches Mobile Webpage INNOVATION IN REMOTE CHANNELS New Company Website New Electronic Factoring platform Mobile Banking for Companies Activate/deactivate your Credit and Debit Card instantly online Finger Print Access to Mobile Banking Apps NEW MOBILE APPS New App for Investments Authorization of web transactions using Mi Pass Mobile QR code mobile payment system EFFICIENCY AND PRODUCTIVITY CRM: 360 degree View of Customers New sales campaign manager Personalized Pricing Model 29

30 1Q18 Financial Results

31 BCH RESULTS QUARTERLY NET INCOME (Net income In billions of CLP and UF Variation QoQ) % 1.46% 1.11% 0.71% 0.93% 0.66% 0.47% 0.47% 0.73% 0.53% 0.63% -0.02% -0.03% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 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% Full year 2017 Net Income: $576 Bn. ROAE: 19% Inflation 1 : 1.7% Corporate tax rate: 25.5% First Quarter 2018 Net Income: $143 Bn. ROAE: 18% Inflation 1 : 0.63% Corporate tax rate: 27.0% UF Variation Source: Banco de Chile,SBIF,Central Bank of Chile

32 ROBUST OPERATING INCOME Consistently growing customer income by improving mix in retail products, managing spreads proactively and improving fee income Quarterly Operating Income 1 (In billions of CLP) Margin Evolution (%) % % YoY 0.7% YoY 4.25% NIM 4.28% 1Q % Spread 3.06% 1Q % YoY Net Fees (In billions of CLP) 1Q17 2Q17 3Q17 4Q17 1Q % Customer income- Retail Customer income- Wholesale Non-customer income UF (QoQ) 1Q17 2Q17 3Q17 4Q17 1Q % 0.73% -0.03% 0.53% 0.63% % 1Q17 2Q17 3Q17 4Q Q Non-customer income Includes income from the contribution UF GAP position and treasury activities. One-time lower commission expense Recurring net fees

33 SUSTAINABLE LONG-TERM FOCUS ON RISK MANAGEMENT Variation in LLP by Concept (In billions of CLP) Volume & Mix Deterioration Exhange Rate Quarterly Loan Loss Provisions (In billions of CLP) 1.00% 0.98% % 0.94% 1.12% Loan Loss Provisions Ratio (%) 1Q17 2Q17 3Q17 4Q17 1Q18 Variation in LLP by Product (In billions of CLP) Commercial Contingent and Other Mortgage Consumer 33

34 FIRM FOCUS ON COST CONTROL Streamlining processes has translated into improved productivity and cost reductions. Operating Expenses (In billions of CLP) Branch and Employee Evolution 6.3% Employees Branches % -4.8% % YoY 14,882 14,105 13, % YoY 1Q16 1Q17 1Q18 1Q16 1Q17 1Q18 5 Efficiency Ratio (%) 1Q17 2Q17 3Q17 4Q17 Personnel Administration & Others Col. Bargaining agreement 1Q18 1Q17 2Q17 3Q17 4Q17 1Q % 44.1% 48.8% 46.6% 45.9% Productivity (In billions of CLP) 0.92% 1.06% 1.14% Productivity +7% YoY Operating Expenses 2.4% 2.5% 2.5% 2.5% 2.5% 1Q16 1Q17 1Q18 Average Total Assets(%) Retail Loans by Employee 34 Source: Banco de Chile,SBIF.

35 HIGHLIGHTS: FIRST QUARTER (YoY) Net Income $143 bn Retail Current Accounts 837,000 Quarterly Consumer Loan sales $499 bn Recurring Retail Customer Income $278 bn +1.9% (YoY) +6.4% (YoY) +26% (YoY) 6.1% (YoY) Recurring Net Fees 90 day NPLs Adjusted Efficiency Ratio Basel Ratio $89 bn 1.17% 44.7% 14.2% +13% (YoY) -5 bps (YoY) -73 bps (YoY) +38 bps (YoY) 35

36 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. 36

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