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Annual Conference Call 2013

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Banco Crédito e Inversiones

Annual Conference Call2013

December 6, 2013


Main awards and recognitions 2013

1st place Corporate Transparency(Second year)

1st place in Chile – Banking group (Second year)

Most Innovative Bank

1st placeMost Responsible Company and Best Corporative Governance(Third consecutive year)

1st place in Chile – Private Banking (Second year)

1st place in Chile – Asset Management

2


Leadership in customer experience

2011 2012

Customer satisfaction (Snex)

Customer recommendation (NPS)





Brand Awareness

2º

N/A 1º

1º

2º

1º 1º

1º

2º

N/A 1º

1º

2º 2º

Retail*

Commercial*

Corporate*

BrandAwareness(Adimark)

3

Gap between 1st and 2nd place : 10pp 4pp

* Based on surveys made by Servitest Ipsos. Includes natural person checking accounts (RM and Regions) with at least one year of seniority. Considers Banco de Chile, Santander, Bci and Estado which are similar banks (niche banks are excluded).


3rd largest privately owned bankin Chile

Source: SBIF – Figures as of September 2013.

Total Loans* Market Share**

13.03%

19.30%

19.21%

13.91%

65.44%

BCI

Banco de Chile

Santander

Banco Estado

Shareholder’s Equity Market Share

Others.43.09%

12.21%

17.92%

18.04%

8.74%

56.91%

BCI

Banco de Chile

Santander

Banco Estado

Net Income Market Share**

Others.25.31 %

15.98%

30.58%

21.60%

6.53%

74.69%

BCI

Banco de Chile

Santander

Banco Estado

NIBD Market share**

Others.20.18%

15.04%

24.22%

21.48%

19.08%

79.82%

BCI

Banco de Chile

Santander

Banco Estado

4

Others34.35%

*It doesn`t consider interbank loans **Excludes Corpbanca’s acquisition in Colombia


Financial results

Operating Revenues

Provision Expenses

Operating Expenses

Income Before Taxes

209,728

(44,102)

Ch$ Thousand Million

5

%∆LTM3Q’12 4Q’12 1Q’13 2Q’13 3Q’13

Net Income

253,009

(26,492)

226,088

(55,673)

235,027

(53,902)

268,241

(57,701)

12.6%

13.6%

(101,710) (119,741) (106,509) (109,177) (111,313) 11.7%

65,677 107,807 66,063 74,788 100,216 12.8%

49,820 93,033 54,046 61,628 83,353 16.3%

Total Loans

Total Deposits

Total Assets

Equity

12,333 13,047 13,218 13,566 13,782 11.8%

17,384 17,996 18,045 18,481 19,256 10.8%

10,172 10,841 10,745 11,007 11,380 11.9%

1,347 1,420 1,453 1,474 1,516 12.6%

Ch$ Million


Financial results

Provision Expenses

Operating Expenses

Income Before Taxes

(44,102)

6

%∆LTM3Q’12 4Q’12 1Q’13 2Q’13 3Q’13

Net Income

(26,492) (55,673)

235,027

(53,902) (57,701)

Operating Revenues 209,728 253,009 226,088 268,241 12.6%

13.6%

(101,710) (119,741) (106,509) (109,177) (111,313) 11.7%

65,677 107,807 66,063 74,788 100,216 12.8%

49,820 93,033 54,046 61,628 83,353 16.3%

Total Loans

Total Deposits

Total Assets

Equity

12,333 13,047 13,218 13,566 13,782 11.8%

17,384 17,996 18,045 18,481 19,256 10.8%

10,172 10,841 10,745 11,007 11,380 11.9%

1,347 1,420 1,453 1,474 1,516 12.6%

Ch$ Million



4.5%5.6% 5.3%

4.9% 5.1% 4.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2009 2010 2011 2012 Sep/12 Sep/13

Net interest income & Fees

NIM (%)(LTM Net Interest Margin / Avg. LTM Loans)

Fees (%)(LTM Net Fees / (LTM Fees + LTM Net Interest Margin)

24.2%

22.4%

23.4%

24.2%

23.4% 23.2%

21.0%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

24.5%

2009 2010 2011 2012 Sep/12 Sep/13

7


8,938,305 9,531,56511,377,851

13,047,497

12.76% 12.72% 12.94% 13.20%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

0

5000000

10000000

15000000

2009 2010 2011 2012

Loans Market Share

12.92% 13.03%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

0

5000000

10000000

15000000

Sep/12 Sep/13

Loans Market Share

Loan Portfolio

12,332,693

Total Loans* and Market Share**(Ch $Million)

8

13.4%

CAGR

Loan Portfolio Mix as of Sep 2012 Loan Portfolio Mix as of Sep 2013

11.8%

13,781,839

Growth

7.8%

8.5%

10.0%

11.2%12.5%

18.2%

19.8%

TelecomFishingMining and ForestryUtilitiesAgricultureTransportationManufacturingConstructionServicesCommerceRetailOthersMortgages

7.1%

7.6%

11.0%

11.2%13.5%

18.0%

20.5%

TelecomMining and ForestryFishingUtilitiesAgricultureTransportationManufacturingConstructionCommerceServicesRetailOthersMortgages

0.8% 1.3% 1.4%1.8%

2.4%3.1%

0.8% 1.9%2.2%

1.3%

2.6%3.5%

* It doesn`t consider interbank loans **Excludes Corpbanca’s acquisition in Colombia


7,892,111 8,311,574 9,921,534 10,840,9536,906,884 7,700,423

2,400,959 2,844,0293,172,480

3,618,365

3,265,467 3,679,648

2009 2010 2011 2012 Sep/12 Sep/13

Non Interest Bearing Deposits

Time Deposits

Funding Sources

9

Non Interest Bearing Deposits + Time Deposits

CAGR

14.7%

11.2%

Funding Mix as of Sep 2012

20.4%

43.1%

10.4%

12.8%

13.4%Non Interest Bearing Deposits

Time deposits

Interbank borrowings

Bonds

Other Liabilities

12.7%

11.5%

Funding Mix as of Sep 2013

20.7%

47.5%

8.1%

14.9%

8.8%Non Interest Bearing Deposits

Time deposits

Interbank borrowings

Bonds

Other Liabilities

Growth


International funding diversification

600

International funding of the last years

Type of instrumentAmount IssuedUS$ millions Country/Region Term

Comments

Asia 2 years

Bond Mexico 3 years

1st Latin American bank toissue bonds in theMexican market.

Bond Mexico 18 months

144 A bond USA 5 years

It received the highestratings from Standard & Poor`s (A1) and Moody’s(P1).

Overdemand of more than US$ 3,000 millions. Spread of only 245 points

2011

Syndicated Loan Asia 2 years

144 A bond USA 10 years Overdemand of US$ 1,800 millions . Spread of 212.5 pointsBond Switzerland 3 years

2012

2013

325

172

76

115

500

210

Syndicated Loan

10

76 CommercialPapers USA 1 year


Financial results

Operating Revenues

Provision Expenses

Operating Expenses

Income Before Taxes

209,728

(44,102)

11

%∆LTM3Q’12 4Q’12 1Q’13 2Q’13 3Q’13

Net Income

253,009

(26,492)

226,088

(55,673)

235,027

(53,902)

268,241

(57,701)

12.6%

13.6%

(101,710) (119,741) (106,509) (109,177) (111,313) 11.7%

65,677 107,807 66,063 74,788 100,216 12.8%

49,820 93,033 54,046 61,628 83,353 16.3%

Total Loans

Total Deposits

Total Assets

Equity

12,333 13,047 13,218 13,566 13,782 11.8%

17,384 17,996 18,045 18,481 19,256 10.8%

10,172 10,841 10,745 11,007 11,380 11.9%

1,347 1,420 1,453 1,474 1,516 12.6%

Ch$ Million



Conservative risk management policies

Allowances for Loan Losses / Total Loans(%)

Non Performing Loans / Total Loans (%)

2.2%

2.5%2.4%

2.3%2.4% 2.4% 2.4%

2.7%

2.4%2.5%

2.6%2.5% 2.5%

2.6%2.7%

2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6%2.5%

2.6% 2.6% 2.6%

2009 2010 2011 2012 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13

Bci Peers Avg

2.0% 2.1% 2.1%1.9% 1.9% 2.0% 2.1% 2.2%

2.4% 2.4% 2.3% 2.3% 2.3%

3.1%

2.8%

2.5% 2.6% 2.6% 2.7% 2.6% 2.6% 2.5% 2.5% 2.5% 2.4%2.6%


Bci Peers Avg

Peers: Banco de Chile, Banco Santander and Banco Estado

12



20,595 20,968 21,418 22,566 22,866 23,447 23,891 23,973 24,871 25,877 26,057 26,250 26,906

2.4% 2.6% 2.7%2.4% 2.5% 2.6% 2.5% 2.6% 2.5% 2.3% 2.4%

2.7% 2.5% 2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

-3,000

2,000

7,000

12,000

17,000

22,000

27,000

Jun/11 Aug/11 Oct/11 Dec/11 Feb/12 Apr/12 Jun/12 Aug/12 Oct/12 Dec/12 Feb/13 Apr/13 Jun/13 Aug/13

Total Loans Allowances / Total Loans

14,072 14,264 14,597 15,486 15,615 15,966 16,271 16,226 16,952 17,771 17,808 17,787 18,344 18,523

2.8% 2.8%2.5% 2.5% 2.6% 2.6% 2.7% 2.5% 2.3% 2.4%

2.8% 2.6% 2.7% 2.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000


Commercial Loans Allowances/Commercial Loans

27,228

Total Loans and risk evolution(US$ Million)

Commercial Loans and risk evolution(US$ Million)

Sep-13Sep-13

Sep-13Sep-13

13


4,006 4,092 4,165 4,302 4,407 4,540 4,623 4,681 4,786 4,893 4,982 5,109 5,204 5,402

0.5% 0.5% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

0.9%

-

1,000

2,000

3,000

4,000

5,000

6,000


Mortgage loans Allowances/ Mortgage Loans

Sep-13Sep-13

2,515 2,612 2,654 2,779 2,846 2,941 2,997 3,068 3,134 3,213 3,267 3,352 3,358 3,409

5.3% 5.4% 5.5% 5.4% 5.5% 5.4% 5.4% 5.4% 5.4% 5.4% 5.8% 5.6% 5.3% 5.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000


Consumer Loans Allowances/Consumer Loans


Consumer Loans and risk evolution (US$ Million)

Mortgage Loans and risk evolution (US$ Million)

Sep-13Sep-13

14


106.7%

132.3% 131.4%139.6%

146.3%

136.5% 135.3% 134.9%

120.8%111.2%

120.9% 117.6% 118.7%

82.2%

95.4%102.4%

123.4% 121.9%121.7% 123.8%

127.3%

127.7%128.4%

131.2%133.7%

131.9%


Allowances / NPLs (Bci) Allowances/ NPLs (Peers)

26.3%

19.9%

17.6% 18.9%

26.5%25.4% 24.6%

27.3%

25.3%23.8%

25.2%

23.4% 22.9%

26.5%

20.5%

18.2%

24.7%26.0%

27.7%25.5%

25.3%

25.7% 25.5% 25.5%24.8% 25.1%


Provision expense/ Operating earnings (Bci) Provision expense / Operating earnings (Peers)

Allowances/NPLs (%)

Provision expense/ Operating earnings (%)

Peers: Banco de Chile, Banco Santander and Banco Estado


15


Financial results

Operating Revenues

Provision Expenses

Operating Expenses

Income Before Taxes

209,728

(44,102)

16

%∆LTM3Q’12 4Q’12 1Q’13 2Q’13 3Q’13

Net Income

253,009

(26,492)

226,088

(55,673)

235,027

(53,902)

268,241

(57,701)

12.6%

13.6%

(101,710) (119,741) (106,509) (109,177) (111,313) 11.7%

65,677 107,807 66,063 74,788 100,216 12.8%

49,820 93,033 54,046 61,628 83,353 16.3%

Total Loans

Total Deposits

Total Assets

Equity

12,333 13,047 13,218 13,566 13,782 11.8%

17,384 17,996 18,045 18,481 19,256 10.8%

10,172 10,841 10,745 11,007 11,380 11.9%

1,347 1,420 1,453 1,474 1,516 12.6%

Ch$ Million



34.39%

56.38%

9.23%AdministrativeExpenses

34.49%

55.76%

9.74%

Other Expenses

Operating expenses

Operating Expenses(Accumulated by September 2013)

MMUS$ 594MMUS$ 649

*Exchange rate USD: 504.2 Ch$ as of October 1st 2013

Staff & BOD

AdministrativeExpenses

17

Operating Expenses(Acummulated by September 2012)

Other Expenses

Staff & BOD

Growth (LTM) 11.7%


39.1%45.0% 45.3%

57.7%

39.7% 41.0% 43.8%

57.9%

Santander Chile Bci Estado

Comparison with chilean peers –Financial system

Source: Superintendency of Banks and Financial Institutions of Chile (SBIF)

Efficiency

Efficiency (Sep 2012 vs. Sep 2013)

18

44.7% 45.4% 44.9%46.1%

43.8%

45.5%46.5%

48.6%

46.4%

46.2%44,6%45.9%

47.6%

48.1%46.8%

2009 2010 2011 2012 Sep/13

Bci Peers (Chile, Estado, Santander) System

2012 2013 2012 2013 2012 2013 2012 2013

152 bp


Financial results

Operating Revenues

Provision Expenses

Operating Expenses

Income Before Taxes

209,728

(44,102)

19

%∆LTM3Q’12 4Q’12 1Q’13 2Q’13 3Q’13

Net Income

253,009

(26,492)

226,088

(55,673)

235,027

(53,902)

268,241

(57,701)

12.6%

13.6%

(101,710) (119,741) (106,509) (109,177) (111,313) 11.7%

65,677 107,807 66,063 74,788 100,216 12.8%

49,820 93,033 54,046 61,628 83,353 16.3%

Total Loans

Total Deposits

Total Assets

Equity

12,333 13,047 13,218 13,566 13,782 11.8%

17,384 17,996 18,045 18,481 19,256 10.8%

10,172 10,841 10,745 11,007 11,380 11.9%

1,347 1,420 1,453 1,474 1,516 12.6%

Ch$ Million



178,223199,027

15.92% 15.98%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

50000

100000

150000

200000

250000

300000

Sep/12 Sep/13

Net Income Market Share

11.7%Growth

160,774

222,076261,268 271,256

13.12%14.02%

15.21%16.70%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

50000

100000

150000

200000

250000

300000

2009 2010 2011 2012

Net Income Market Share

CAGR 19.1%

Net Income

20

Acummulated Net Income and Market Share*(Ch $Million)

Net Income per Quarter(Ch $Million)

60,460

77,647

50,268

72,89365,604 62,799

49,820

93,033

54,04661,628

83,353

1Q 2Q 3Q 4Q

2011

2012

2013

*Excludes Corpbanca’s acquisition in Colombia


17.8%

23.8%

17.6%

8.7%

16.0%

22.8%

17.5%

10.0%

Santander Chile Bci Estado

Comparison with chilean peers –Financial system

Source: Superintendency of Banks and Financial Institutions of Chile (SBIF)

ROE

ROE (Sep 2012 vs. Sep 2013)

21

21.9% 21.4% 21.4%

19.1%17.5%21.5% 20.5% 18.7%

16.9%16.3%18.0% 18.6%

17.4%

14.7% 13.8%

2009 2010 2011 2012 Sep/13

Bci Peers (Chile, Estado, Santander) System

2012 2013 2012 2013 2012 2013 2012 2013

Considering the net income

of the last twelve

months, in order to capture

the effect of seasonality, the

ROE (LTM) is 19.26%

Considering the net income

of the last twelve

months, in order to capture

the effect of seasonality, the

ROE (LTM) is 19.26%


8.95% 9.41% 9.39% 9.61% 9.67%

3.15%4.17% 4.53% 3.99% 3.67%

12.10%13.58%

13.92%13.60% 13.34%

2009 2010 2011 2012 Sep/13

Tier II

Core Capital

Sound capital levels

22

12.10%13.58% 13.92% 13.60% 13.34%

6.41% 6.98% 6.84% 7.04% 7.09%

2009 2010 2011 2012 Sep/13

Regulatory Capital / Consolidated Risk weighted assets

Basic Capital / Total Assets

Required by Sbif (10%)

Required by Sbif (3%)

Capital Base

Bis Ratio


29.1%

34.9%

9.7%

26.2%

Growth (LTM) 11.8%

29.3%

29.6%15.86%

25.2%

CIB CommercialBanking

RetailBanking

Loans and Operating Incomeby Segment

Total Loans**(September 2013)

Operating Income by Segment(Accumulated by September 2013)

SMEs

MM US$ 27,455 MM US$ 496

* Exchange rate USD: 504.2 Ch$ / UF value: 23.092.57 Ch$ as of October 1st 2013

CIB

RetailBanking

SMEs

CommercialBanking

SMEs

Commercial Banking

Corporate & Investment

Banking (CIB)

Retail Banking

Revenues < US$ 3.7 MM*

Bci

23

Revenues > US$ 3.7 MM

** It doesn`t consider interbank loans


Retail BankingOperating Income by Segment

� Income margin (less risk expenses)

market share grew by 59 bps to 12.78%

(outperforming peers).

� Loans grew by 11.5% YoY and yield

spreads improve during the year.

� Significant improvements in the rate of

performing loans, reducing the provision

expense by 21.7%.

42,914

Sep 2013

Ch$ Million

73,995

Sep 2012

24


SME’s BankingOperating Income by Segment

39,060

Sep 2013

Ch$ Million

39,658

� Division created in February of this

year, which aims to deliver more

specialized attention to this segment.

� Loan’s grew by 12% and NIBD’s grew by

13%.

� Fees grew by 37% YoY, growth was

driven by the use of products and

services by customers.

Sep 2012

25


Commercial BankingOperating Income by Segment

68,115

Sep 2013

Ch$ Million

73,357

� Consistent growth in loans and NIBD`s.

� Fees grew by 21.8% YoY, due to an

increase in cross selling in mutual funds and

security brokerage.

� Expenses decreased by 4% YoY, improving

efficiency ratios.

� Risk increased by 24% due to one particular

case. However, excluding this effect, would

have resulted in a YoY decrease of 60%.

� Operating income grew 8% YoY, continuing

with an upward trend.

� 1st place in Factoring market share.

Sep 2012

26


Corporate & Investment BankingOperating Income by Segment

108,727

Sep 2012

Sep 2013

Ch$ Million

63,026

� Provision expense growth is explained by 2 cases.

However, it is expected an important reverse of

them due the M&A of Pesca Chile and the capital

raise of SMU.

� The result was affected by a lower inflation (acum.

UF sept 2013 was lower than acum. UF sept 2012

in 0.24%), effect that was mitigated by the

adequate treasury/ALM management.

� Excluding both effects, the operating income of

the CIB would have raised by 15% due the

commercial activity.

- Corporate Banking: 38% (*FM)

- Private Banking: 29% (*NI)

- Security Brokerage: 33% (*NI)

- Asset Management: 9% (*NI)

27

* NI Net Income, FM: Financial Margin


Corporate & Investment BankingOperating Income by Segment

108,727

Sep 2012

Sep 2013

Ch$ Million

63,026

� 1st place in FX transaction (Source: Datatec)

� 32% of market share in Corporate Bonds

placements amount.

� Best Private Banking in Chile by

WorldFinance (Second year).

� 1st place in the category Stock Fund

Management by Morningstar.

� Best Investment Management company in

Chile by WorldFinance.

28


International Ratings 2013

29

Outlook

Long-term rating

Bank financialstrength rating

Moody’s*

A1

C

Short-term issuerlevel rating

Outlook

P1

Negative

F1

RatingCategory

Long-term local issuer credit

Foreign currencylong-term debt

Foreign currencyshort-term debtStandard

& Poor’s Local currency short-term debt

FitchRatings

A

A

A-

F1

Long-term foreignissuer credit

A-Local currencylong-term debt

Short-term local issuer credit

A1

A1

Short-term foreignissuer credit

Outlook Stable

Viability a-

Stable

RatingCategory

* Bank Deposit rating


Summary

30

Through a profitable and healthy growth. Bci continues

to generate value for its shareholders

� Bci’s sound performance:

− Sustained growth in segments with potential and high profitability.

− Higher return than the financial system.

− Lower risk rate on a YoY basis and low NPL risk compared to peers.

− Bci’s last twelve months net income growth is better than the financial system (Bci : 16.3% ; financial

system: 14.3%*).

� Conservative risk history and low solvency risk:

� Successful progress in the funding diversification strategy.

� Low liquidity risk policy allowed Bci to acquire the best international short term credit rating with

Moody’s and S&P.

� Proactive capitalization policy with high BIS ratio.

*Excludes Corpbanca’s acquisition in Colombia

annual conference call 2013 - bci personas · annual conference call 2013 financial results...

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