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Corporate Presentation October 2019

201910 - BI - Corporte Presentation IMF v1

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Page 1: 201910 - BI - Corporte Presentation IMF v1

Corporate PresentationOctober 2019

Page 2: 201910 - BI - Corporte Presentation IMF v1

Chile: Economic overview

Monetary Policy Rate% EoP

Inflation% YoY

Unemployment% EoP

GDP Growth% real YoY

4.0%

6.1%

2.3%

5.8%

1.3%

’14

5.3%

’20P’19P’15’10

1.8%

’13 ’18’16’11

2.5%

’17

3.0%

’12

1.7%

4.0%

2.6%2.7%3.1%

3.8%

4.9%4.7%

1.4%

’19P18’10 ’17’15

2.0%

’20P’14’13’12’11

3.5%

’16

1.8%

5.0%

2.7%2.7%

4.6%

1.5%

4.4%

3.0%

’19P18

2.4%

’13 ’16’15’14’12 ’20P’11 ’17

2.3%3.0%

’10

2.8%

4.4%6.4%6.6%7.1%

6.5%

’20P

6.6%

’17

6.1%

’16

5.7%

’15’11 ’14 ’18

6.0%

’12

6.5%5.8%

’19P

6.1%

’13’10

Source: Central Bank of Chile, IMF

• Macro outlook for Chile for 2019F+ is positive: 2.5-3.0% growth, stable unemployment and low inflation

• Historically, Chile exhibits high macro resilience given sound Institutions (e.g., independent Central Bank) and prudent fiscal policies

• Chile historically outperforms Latam peers

Latam Average

Latam Average Latam Average

2

Page 3: 201910 - BI - Corporte Presentation IMF v1

Chile: Economic overview

GDP per CapitaPPP, ‘000 US$, 2018

16.6

20.6

20.7

44.3

Bolivia

53.2

Colombia

ASEAN-5

Brazil

23.5

Peru

Venezuela

Latam

Mexico

25.3

Argentina

MENA

7.9

Paraguay

16.1

14.4

11.0

Uruguay

EU

15.0

19.3

Chile

13.6

20.0

G7

Source: IMF

21%

13%

11%11%

6%

6%

6%

4%4%

3%Cayman Islands

UK

Spain

Virgin Islands

Bermuda

CanadaBrazil

Japan

Netherlands

USA

FDI Stocks%, 2018

Government Debt & Trade Balance% GDP

9% 11% 12% 13% 15% 17% 21% 24%

0% -1% 1% 0% 1% 2%

48% 48% 48% 49% 51% 54% 58% 61%

201520142013 2017

6%

2011 2012

3%

20162010

Latam Trade BalanceLatam DebtTrade BalanceDebt

3

Page 4: 201910 - BI - Corporte Presentation IMF v1

Chile: Economic overview

Export Diversification% GDP, 2018

Source: IMF

Import Diversification% GDP, 2018

4

2.0

NLD

2.02.22.73.04.99.1

27.0

1.9

India

15.0

China Brazil PeruCanadaSouth Korea

2.15.8

SpainJapan Mexico GermanyUnited States

Fruit

0.7%1.6%

Paper

0.7%

Wood

1.0%

Wine Copper

1.5%

Sea Food

11.6%

By Product

By Country

By Product

By Country

1.4%

Utility vehicles

1.3%

Medicaments

0.3%

PetroleumCars

0.3%

2.9%

Meat

0.5%

Grains

4.48.5

3.4 2.4

Brazil Italy

18.0

Mexico Spain

2.1

South Korea

4.2 1.9

United States

France Ecuador

2.12.9

GermanyArgentinaChina

3.4

25.0

Japan

Commercial Trade BalanceUS$ Bn

2017201420122011200920072006 201620052002 20042001 2008200019991998 200319971995 201520172012 20131995 20142011 201620132010200820071996 200920031997 20022001 201520061999 2005 20102004 19961998 2000

ImportExport

Page 5: 201910 - BI - Corporte Presentation IMF v1

Assets / GDP%, 2018

Chile: Banking industry overview

Loan Growth% EoP

Risk Weighted Asset Density%, 2016

Source: IMF, SBIF

Loan Elasticity / GDP%

20192012 20142013 20162010 2011 2015 2017 2018

1.3

2.5

0.2

1.6

1.0

2.7

0.50.7

2.01.6

0.40.8

1.00.8

1.7

0.3

1.0

2.2

3.4

16 1944 47 53 53 60 64 66

76 80 80 82 88 94 9710

911

211

213

313

3 142 14

8 156

New

Ze

alan

d

Aust

ralia

Swed

enN

ethe

rland

s

Japa

nFr

ance

Ger

man

y

Finl

and

Aust

ria

Nor

way

Uni

ted

King

dom

Irel

and

Sout

h Af

rica

Chin

a

Mex

ico

Colo

mbi

aU

nite

d St

ates

Chi

le

Braz

il

Kore

a

Isra

el

Cana

da

Indi

a

Arge

ntin

a

Latam Mortgage Loan Penetration% of GDP, 2016

26

9

6 64

1

MexicoBazil Peru ArgentinaColombiaChile

19%

15%13%

8%

12%9%

2018

2%

201620152012

6%

2011

3%

20142010

7%

2013 20192017

Assets US$ 371 billion (1.2x)

Loans US$ 261 billion (0.9x)

Liabilities US$ 342 billion (1.1x)

Equity US$ 30 billion (0.1x)

Balance Sheet StructureAugust 2019, xGDP

78 78

66 65

50

32

BazilMexico EuropePeruChile USA

WholesaleTotal

5

Page 6: 201910 - BI - Corporte Presentation IMF v1

New Banking Law: from Basel I to III/IV

CET1 at 8.5% by 2024 and introducing systemic, counter-cyclical & Pillar II buffers

Standardized Approach and Internal Models are considered in the New Law

New Banking Law phase-in

July 2019

Status of new regulation to be set through December 2020:

Proposed:

• Systemic risk, presented August 2019

Pending:

• Standardized Credit Risk• Internal Models (IRB)• Market Risk• Operational Risk• Pillar II• Additional Tier I Capital• Counter-cyclical buffer• Capital deductions

Chile: New Banking Law – From Basel I to III/IV

6

CE

T1 +

A

T1

CE

T1 +

Ti

er I

I

Ris

k W

eigh

ted

Ass

et

(exp

ecte

d)

'18 4.5% 8.0% Credit

'19 - '20 4.5% 8.0% Credit

'21 6.6% 8.6% Credit

'22 7.3% 9.3%+Market+

Operational

'23 7.9% 9.9%+Market+

Operational

'24 8.5% 10.5%+Market+

Operational

Page 7: 201910 - BI - Corporte Presentation IMF v1

I• Iquique

IV• La Serena

RM• 8 Branches

V• Viña del Mar

VI• Rancagua

VII• Talca

VIII• Concepción

IX• Temuco

Source: Banco Internacional. SBIF; Banco Internacional analysis(1) In April 2019, ILC increase its ownership up to 67%(2) LTM(3) Total Loans + Contingent(4) Commercial Loans, August ’19(5) Press Release, Feller Rate, October ’19(6) Press Release, ICR, October‘19

BranchesOwnership Structure(1) Selected Indicators

Banco Internacional at a glanceSeptember 2019

67,2%

32,5%

BI Holdco

Otros0,3%

ILC Holdco II• Antofagasta

Market Share(4)

2.0% Total Loans(3)

US$ 2.859 MM

Net Income(2)

US$ 34.1 MMTotal Assets

US$ 4.603 MM

# Branches16

Rating AA- AA-(neutral) (neutral)

(5) (6)

Shareholder’s EquityUS$ 241 MM

ROAE (2)

16,9%

Employees544

7

Page 8: 201910 - BI - Corporte Presentation IMF v1

Recognitions

8

2019

2018

Page 9: 201910 - BI - Corporte Presentation IMF v1

Highlights since 2016

9

• IT architecture, legacies and core systems were successfully migrated in 11 months in 2017• Corporate offices were relocated to state-of-the-art facilities, improving efficiency

IT Transformation & New Corporate Headquarters

• Consolidated New management team with a proven track-record• Completed organizational transformation that implied restructuring 75% of upper and mid-

management

Consolidation of New Management Team

• Return to debt capital markets after 8 years:• June 2017: 5 year bond (US$ 76m)• May 2018: 30 year subordinated bond (US$ 41m)• 2018: US$ 205m• 2019: US$ 364m through July 2019• October 2019: subordinated bond (US$ 41m) expected

Successful Bond Issuing

• In October 2017, ICR improved rating to AA- (local rating)• In October 2018, Feller Rate improved rating to AA- (local rating)

Credit Rating Improvements

• In 2017, a 70% capitalization policy was introduced in line with our growth strategy• In February 2018, a capital plan of US$ 89m was approved• In March 2018, a capital injection of US$ 15m was completed• In November 2018, a capital injection of US$ 37m was completed• In September 2019, a capital injection of US$ 30m was completed

Capital Plan and Basel III compliance

• Successful new Asset Management business, reaching 1% market share through July 2019• Insurance Intermediary business

New Subsidiaries

Page 10: 201910 - BI - Corporte Presentation IMF v1

Performance gaps vs. benchmarks were overcome by 2018 through the successful execution of our Turnaround Plan

10

Gaps by 2015

LLP Expense (5)

(% GOR)

Efficiency Ratio (6)

(% GOR)

Turnaround Plan Results December 2015 vs. August 2019

Source: Banco Internacional. SBIF; Banco Internacional analysis(1) Banco de Chile, Santander, BCI, BancoEstado; (2) Itau, Scotiabank; (3) Security, BICE; (4) Annualized Pre-Tax Income / Equity; (5) Provision Expenses excl. recovers / Gross Operational Results; (6) Non-interest Expenses/ Gross Operational Results.

Pre-tax ROE (4)

20%13% 15%

-2%

20%

11%15%

20%18

23% 22% 17%

39%

22% 25%13%

24%23

-16%

45% 50% 49%66%

45% 50% 50% 42%

International(2)

45

Banco InternacionalPeers(3)Mega(1)

-23%

Page 11: 201910 - BI - Corporte Presentation IMF v1

Banco Internacional 2022 Strategic Plan

11

Achieve scale in current and new businesses

3% Market Share in current business segments

Diversified growth in new businesses

Leaders in Efficiency

Revenue Stability

Achieve revenue stability through diversified growth

in clients and products Enhance cross-selling

Follow-through onde-risking

Risk disciplineNPL de-risking

Culture and Capabilities DigitizationEnabled by:

Page 12: 201910 - BI - Corporte Presentation IMF v1

Banco Internacional objectives through 2022

12

2016-2018 2019-20222012-2015

Turnaround 2022 TargetsBefore

1,0%1,8%

3,0%

Today

13%18%

0%

64% 56%< 40%

202220182015

39%

15% 10%

Market Share Commercial

Loans (%)+ 1.2%+ 0.8% # 9

ROAE% + 5%+ 13% # 4

LLP% GOR - 5%- 24% # 3

Efficiency% GOR - 15%- 8% # 2

Page 13: 201910 - BI - Corporte Presentation IMF v1

13

Shareholder Commitment to our Long-Term

Vision

Effective Execution of a

Proven and Coherent Strategy

Efficiency Upsides through

Digitization

De-Risking and Improvements

in Risk Management

Consolidated Corporate

Governance

Solid Financials

B

C

D

A

E

Banco Internacional success enablers

Page 14: 201910 - BI - Corporte Presentation IMF v1

ILC – our main shareholder – is a Chilean financial group with a successful track-record and proven financial stability

14

LTM Net Income (1)

US$ 144 MM

Assets (1)

US$ 73.4BnAFP Habitat. Confuturo and

Corpseguros

Rating:

AA+

Market Cap(2)

US$ 1.8 BnROE (1)

14.0%Consolidated Employees

13,000Aprox. In Chile and Peru

67.0%

International Investors Local Investors

10.7% 22.3%

(1) LTM June 2019 (2) Market Cap. May 2019;Source: ILC; Banco Internacional analysis Ranking within their industry

10° 1° 2°

4°2°2°

A

Page 15: 201910 - BI - Corporte Presentation IMF v1

Governance is ensured through a reputable Board and a solid Management Team with proven track-record

15

SegismundSchulin-Zeuthen

ChairmanIndependent

Board Member

Andrés Solari

Vice - president

Pablo Ihnen

Francisco Vial

Andrés Navarro

Fernando Lefort

Independent Board Member

Carlos Brito

Juan AntonioMinassian

Independent Board Member

Sebastian Claro

HéctorNeiraCRO

Experience20+ years

Ezequiel Iturain

CFO

Experience10+ years

Natalia Madrid

HR

Experience10+ years

SebastiánSalgóLegal

Experience15+ years

Lorena Bulnes

Comptroller*

Experience20+ years

Mario ChamorroCEO

Board Members

Management Team

B

HernánCerdaSME´s

Experience20+ years

Christian Misle

Middle-Market & Corporate

Experience25+ years

Javier Barrenechea

Treasury

Experience20+ years

Jorge Garrao

Retail

Experience20+ years

Rolando RuizCTO

Experience15+ years

Source: Banco Internacional * Report directly to the Board

Carmen González

COO

Experience25+ years

Marco Bravo

Compliance*

Experience25+ years

Page 16: 201910 - BI - Corporte Presentation IMF v1

Chairman and CEO experience

16

B

Segismund Schulin-Zeuthen SerranoChairman

• MsBA. Universidad de Chile

• 2019 Chairman Banco Internacional

• 2018-14 Chairman Chilean Bank Association

• 2014-10 Chairman Banco Estado

• Visa• 2011 - 07 Director Visa Inc.• 2007 - 04 Director of Innovant• 2007 - 03 Chairman Visa LAC

• Banco de Chile• 2007 - 99 Chairman and Director Banco de Chile• 1999 - 85 CEO Banco de Chile

• Other• Director Corpbanca• Director Sonda S.A.• Director Essbio S.A.• Director Almagro S.A.

Mario ChamorroCEO

• MsBA. Universidad de Chile

• Masters in Economics. Universidad de Chile

• MBA UCLA

• 2015 CEO Banco Internacional

• 2015-14 CEO Tanner Servicios Financieros

• 2000-11 CEO CorpBanca

Page 17: 201910 - BI - Corporte Presentation IMF v1

10.5%

13.9%14.8%

4.1%

’19 E

8.8%

12.6%

YTD ’19

3.1%

11.4% (*)4.3%

3.0%

’18

7.5%

11.8%

’17’16

4.3%

9.6% 8.3%7.9%

13.0%

’15

4.9%

8.3%CET1 (3)

Tier II (2) 3.9%

’14

9.9%

1.7

Other Assets,Net (8)

Total Loans,Net

TradingAssets

1.71.9

-2%

23%

78%

1%

3%21%

75%

’181%

Liquid Assets & Cash

10%

’17

73%

1%

0%

’16

2.2

25%

14%16%

70%

3.2

11%

3%

’14

6%

16%

2.9

73%70%

YTD ’19

5% 4%

’15

1.71.7

Bonds

16%

BanksDeposits -WholesaleDeposits -Retail

YTD ’19

14%

7%

19%

7%7%

1.9

’17

8%

61%

4%

’14 ’18

9%

8% 54%

12%

8% 6%

62%

6%

Current AccountsEquity6%

52%

8%

4%

2.9

5%

3.2

4%

7%

4%

16%

’15

63%

53%8%

19%

’168%

8%

2.2

6%

8%7% 8%

Capital adequacy, liquidity and balance sheetSeptember 2019

17Source: Banco Internacional. SBIF; Banco Internacional analysis(1) Risk Weighted Assets; (2) Subordinated Bonds; (3) Core Equity Tier I; (4) Liquid Assets; (5) LA / Short-Term Liabilities; (6) Net of Other Liabilities; (7) Includes Other Assets net of Other Liabilities; (8) Net of Other Liabilities

LiquidityAugust 2018

Capital adequacyTotal Equity / RWA(1). August 2018

Assets(7)

US$ Bn. August 2018Funding Mix(6)

US$ Bn, EoY, excl. Other Liability

81%

321%

151% 152%RCL (5)

%

’18

Industry:Ø 80%

YTD ’19’14 ’17’16’15

651361250 274 423

114LA

(MM US$) (4)

C

LiquidityEoY

Capital AdequacyTotal Equity / RWA(1), EoY

Assets(7)

US$ Bn., EoY

Industry

21%

39%

8%

9%

23%

77%

10%

4%

6%

4%

Industry

(*) Capital injection of US$30m sept ’19 and subordinated bond of US$ 40m expected oct ‘19

Page 18: 201910 - BI - Corporte Presentation IMF v1

Income StatementSeptember 2019

Gross Operating MarginUS$ MM

Efficiency Ratio% GOR

LLP Expense% GOR

1,265

YTD ’18

1,3791,593

YTD ’19

2,859

2,194

YTD ’15 YTD ’17YTD ’14 YTD ’16

1,264

+126.0%

Total Loans US$ MM

Market ShareCommercial Loans

Net IncomeUS$ MM, before & after tax

1,0 1,0 1,1

1,3

1,6

2,0

YTD ’19YTD ’18YTD ’14 YTD ’17YTD ’16YTD ’15

+0,98

C

18

14 17 2134

2

2

43

21

2016

0

2014

3

LTM

16

20172015 2018

27

+1,998%

58 6270

7788

114

2014 2017 LTM20162015 2018

+96.5%

59.8 58.6 60.561.0

YTD ’18

42.7

YTD ’14 YTD ’17 YTD ’19

54.0

YTD ’16YTD ’15

-17.1

29.7

16.8

17.5

20182017

39.2

14.0

18.6

2014 2016

23.014.7

LTM2015

16.7

13.8

34.318.6

-11.1

Page 19: 201910 - BI - Corporte Presentation IMF v1

Chilean Commercial Loans Market, 2019

9.211.713.6CAGR2010-2019

(%)11.28.8

Our strategic priority is targeting SMEs and Middle-market companies – 63k potential clients in Chile

19Source: SBIF; Banco Internacional analysisMarket clients segmented by debt: Micro < US$ 20,000; Small: <US$ 160,000 ; SME <US$ 720,000 ; Middle-Market <US$ 8,000,000 ; and Corporate: >US$ 8,000,000

DebtMM US$

25.1(0.0%)

11.6(0.0%)

12.9(0.0%)

4.2(0.0%)

91.6(0.1%)

Total Market Clients. ‘000 3.316.2

923.451.8373.8

Average DebtUS$ ‘000 1.551

27.8195 35 223

GDP Elasticity 1.87 1.693.194.301.46

NPL%

5.30 2.914.985.220.44

# of bank relationships

3.001.633.94

1.57

CorporateMiddle MarketSMEMicro

2.13

Small

Price relevance --Footprint relevance

-- - + ++

++ + - - +

D

Page 20: 201910 - BI - Corporte Presentation IMF v1

-1% 0%6%

9%

25%29%

-505

10152025303540

Industria

Banco Internacional

3%

1.0

ene. 15ene. 2013

2.0

ene. 19ene. 18ene. 160.5

ene. 17ene. 14

1.5

1.761.41

1.98

1.131.03

+0.10+0.27

+0.57

Since 2016, Banco Internacional is the fastest-growing Bank in Chile

20Source: SBIF; Banco Internacional analysisNote: Total market only considers assets in Chile

D

Banco Internacional Commercial Loans Market Share, %

Commercial Loans Growth, real terms, 12 month moving average, %

Page 21: 201910 - BI - Corporte Presentation IMF v1

Our business-model is diversified across strategic segments, revenue sources and allows high organic growth

21Source: Banco Internacional, SBIF; Banco Internacional analysis(1) Retail: Annual sales under MUS$ 440, SME’s: Annual sales between MUS$ 440 – MUS$ 11.000; Middle-Market & Corporate: over MUS$ 11.000

Client ActivityEoY, September 2019

D

Non-interest Revenue from Client ActivityUS$ MM, % GOR, EoY

Breakdown of Assets by Segment(1) and Revenue%, September 2019

Breakdown of Loans by Sector %, September 2019

SMEs

GOR

Middle-Market& Corporate

Retail 17.6%

43.2%

39.2%

Assets

54.8%

9.6%

35.6%14.2%6 Fees

9.4%

7.6%

92.7%

8.8%

8.1%

’17

15.1%

21

’16

12.0%

3.7% 16.5%

TreasuryManagement

2.9%

’15 LTM

23

’18

25

’14

7.4%

6

+52%

+11%

YTD ’19

0.49

’18

0.710.71

’17

Average Loans(US$ MM)

’16’15

0.510.49

’14

0.57

3.176 3.374 3.779 4.366 4.998 5.525Clients (commercial)

+9%+17%

11%

14%

22%6%

5%

3%

5%

23%

Electricity, Gas & WaterMinig

Financial Services

Forestry, Farming & Fishing

Transportation & Telecommunications

Commerce

IndustrialConstruction

0%

Holding

Services

Page 22: 201910 - BI - Corporte Presentation IMF v1

Risk Index (1)

%. EoYCollateral Coverage

% Total Loans, EoY

NPL (2)

% Total Loans

De-riskingSeptember 2019

22Source: Banco Internacional. SBIF; Banco Internacional analysis(1) Loan Lost Provision / Total Loans; (2) Non-performing Loans

NPL (2)

% Total Loans, EoY

E

2.9

’18

3.1

1.9 1.9

2.9

2.2

’17’15’14 ’16 YTD ’19

Industry2.4

74.373.7

58.5

’17

70.963.5

Industry50

’16

71.6

YTD ’19’18’15’14

2.3 0.9

’16

2.2

2.2Client BClient A

’18

4.20.3

2.6

1.3

’15 YTD ’19

0.33.4

’17

4.6

3.7

2.33.43.4

’14

Industry2.0

2.2

Adjusted NPL’s

Total NPL’s

1.92%

Client B

0.26%

3.36%

0.90%2.20%

Client A Target 24m

-0.28%

Page 23: 201910 - BI - Corporte Presentation IMF v1

Note: September ’19Source: Banco Internacional analysis 23

FinancialsBalance Sheet, US$ MM

2014 2015 2016 2017 2018 YTD Δ 15/14 Δ 16/15 Δ 17/16 Δ 18/17 Δ 19/18

Assets 1.670 1.673 1.883 2.208 2.903 3.243 3 211 325 695 339

Cash and Cash Equivalents 187 74 145 102 263 125 - 112 71 - 43 162 - 139

Total Loans, Net 1.174 1.221 1.314 1.607 2.177 2.536 47 93 293 570 359

Trading Assets 168 271 216 10 35 27 103 - 55 - 206 25 - 8

Liquid Assets 51 30 152 441 324 589 - 21 121 289 - 117 265

Derivatives, Net 1 3 6 16 22 18 2 2 10 7 - 4

Fixed Assets 20 23 20 4 13 3 2 - 2 - 16 9 - 10

Other Assets, Net 69 51 31 28 68 - 56 - 18 - 19 - 3 39 - 124

Liabilities and Shareholder’s Equity 1.670 1.673 1.883 2.208 2.903 3.243 3 211 325 695 339

Liabilities 1.559 1.534 1.741 2.067 2.708 3.030 - 24 206 326 642 322

Current Accounts and Other Demand Deposits 132 134 116 170 195 197 2 - 18 54 24 3

Time Deposits 1.174 1.180 1.453 1.618 1.997 2.089 6 273 165 379 92

Banks 127 129 69 92 118 128 2 - 59 23 26 10

Bonds 127 92 102 185 398 615 - 34 10 83 213 217

Shareholder’s Equity 111 138 143 142 195 213 27 4 - 1 53 18

Page 24: 201910 - BI - Corporte Presentation IMF v1

2014 2015 2016 2017 2018 LTM Δ 15/14 Δ 16/15 Δ 17/16 Δ 18/17 Δ 19/18

Gross Operating Margin 58,0 61,8 69,7 76,6 87,9 113,9 3,9 7,9 6,9 11,3 26,0

Loan Loss Provision, Net - 13,3 - 21,2 - 10,2 - 10,7 - 12,2 - 19,1 - 7,8 10,9 - 0,5 - 1,4 - 6,9

Non-interest Expenses - 42,6 - 43,1 - 43,9 - 44,4 - 49,0 - 52,1 - 0,5 - 0,8 - 0,5 - 4,6 - 3,1

Net Operating Margin 2,0 - 2,5 15,6 21,5 26,7 42,7 - 4,5 18,0 5,9 5,3 16,0

Other Non-operating Incoming 0,0 0,0 0,3 - 0,0 - 0,1 0,0 0,0 0,2 - 0,3 - 0,0 0,1

Income Before Taxes 2,0 - 2,4 15,8 21,4 26,7 42,7 - 4,4 18,2 5,6 5,3 16,0

Income Tax 1,3 2,6 - 1,9 - 4,0 - 5,5 - 8,6 1,2 - 4,5 - 2,0 - 1,6 - 3,1

Net Income 3,4 0,1 13,9 17,5 21,1 34,1 - 3,2 13,8 3,6 3,7 13,0

Note: September’ 19Source: Banco Internacional analysis

FinancialsIncome Statement, US$ MM

24

YTD 2014

YTD 2015

YTD 2016

YTD 2017

YTD 2018

YTD 2019 Δ 15/14 Δ 16/15 Δ 17/16 Δ 18/17 Δ 19/18

Gross Operating Margin 47,6 47,1 51,1 56,3 66,2 92,6 - 0,4 4,0 5,2 9,9 26,4

Loan Loss Provision, Net - 11,0 - 16,6 - 8,6 - 7,1 - 10,9 - 17,8 - 5,6 8,0 1,5 - 3,8 - 6,9

Non-interest Expenses - 30,4 - 30,0 - 32,4 - 35,4 - 37,0 - 40,3 0,4 - 2,5 - 3,0 - 1,6 - 3,3

Net Operating Margin 6,2 0,5 10,1 13,8 18,3 34,5 - 5,6 9,6 3,7 4,5 16,1

Other Non-operating Incoming 0,0 0,0 0,3 - 0,0 - 0,0 0,0 0,0 0,2 - 0,3 - 0,0 0,1

Income Before Taxes 6,2 0,6 10,3 13,8 18,3 34,5 - 5,6 9,8 3,4 4,5 16,2

Income Tax - 1,1 1,9 - 0,5 - 2,4 - 3,6 - 6,7 3,0 - 2,4 - 1,9 - 1,2 - 3,1

Net Income 5,1 2,5 9,8 11,4 14,7 27,8 - 2,6 7,3 1,5 3,3 13,1

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Ezequiel [email protected] – +56 2 2989 7215Av. Apoquindo 6750. 16th Floor. Las Condes

Ma. Ignacia ErrázurizInvestor [email protected] – +56 2 2989 7976Av. Apoquindo 6750. 16th Floor. Las Condes