Chile. First Half July 30, 2015

Transcription

1 1 Chile First Half 2015 July 30, 2015

2 Disclaimer 2 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 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. Historical figures have been restated in accordance with the new accounting standards adopted by Chilean banks in Please note that this information is provided for comparative purposes only and that this restatement may undergo further changes during the year and, therefore, historical figures, including financial ratios, presented in this report may not be entirely comparable to future figures presented by the Bank. 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.

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

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

5 Macro-economic environment 5 Higher growth of internal demand and exports should boost growth Internal Demand (YoY growth, %) Export growth (YoY growth, %) (e) 2016 (e) (e) 2016 (e) Investment (YoY growth, %) Unemployment (yearly average, %) (e) 2016 (e) (e) 2016 (e) Source: Central Bank of Chile and Santander estimates

6 Financial system: Loan and deposit growth 6 Constant EUR bn Financial system with stable growth rate trends Total loans Stable loan growth rate in 2015 YoY (%) 9.7% 10.3% 10.6% 9.4% 10.0% Growth of consumption and noncopper export sectors drives loan growth J'14 S'14 D'14 M'15 My'15 Total customer funds* YoY (%) % 11.7% 12.8% 10.9% 11.7% High levels of liquidity in the local market drives growth of customer funds J'14 S'14 D'14 M'14 My'14 Source: Superintendency of Banks of Chile * Includes demand deposits, time deposits and mutual funds

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

8 Our Franchise 8 Santander Chile is the nation s leading bank EUR constant 1H 15 Var. YoY Business and Results Gross Loans 34.1bn. 10.4% Deposits 24.2bn. 15.1% Consolidated profit 366mn. -9.1% Attributable profit 259mn. -7.1% Network and Customers 1H 15 Mkt. share 1 Clients 3.6 mn. 22.7% 2 Branches % ATMs 1, % Market Share 1 Loans 19.4% Deposits 17.6% Checking accounts 22.6% Bank credit cards 18.5% 1. As of May 2015 or latest available figures using the period-end exchange rate. Excludes Corpbanca Colombia 2. Market share of clients with checking accounts. Source: Superintendency of Banks of Chile

9 Commercial focus / strategy 9 High income loans (EUR bn.) High income loan growth % 8.6 Positive loan growth in high income individuals Jun-14 Jun-15 Total cross-sold clients 1 (ths.) Individuals: Cross-sold clients % 331 Individual client base growing with greater client loyalty Jun-14 Jun-15 Total cross-sold clients 1 (ths.) SMEs: Cross % 34 SME client base growing sold clients with greater client loyalty Jun-14 Jun Cross-sold & transactional: Clients with checking account plus 2-4 products depending on the segment and with intense usage measured according to an internal point system

10 Loan performance 10 Loan growth focused on segments with highest risk adjusted return Constant EUR million* Total gross loans 10.4% 2.7% 30,900 31,383 32,173 33,209 34,111 Jun 15 YoY (%) QoQ (%) Individual 17, Mortgage 9, Consumer credit 5, SMEs 4, Middle Market 8, Corporates 3,340 (3.0) (8.1) Total Loans** 34, J'14 S'14 D'14 M'15 J'15 * At period end rate as of June ** Total loans includes amounts not reflected by segments and are gross of loan loss provisions

11 Total deposits 11 Strong growth of core deposits Constant EUR million* Total deposits 15.1% -3.4% Jun 15 YoY (%) QoQ (%) 21,024 22,517 24,088 25,056 24,203 Demand 9, Time 14, Total deposits 24, Mutual funds 5, J'14 S'14 D'14 M'15 J'15 * At period end rate as of June 2015

12 Agenda 12 Macro-economic environment and financial system Strategy and business Results Appendix

13 Net Interest Income and Spreads 13 QoQ rise in NII is due to higher inflation. Client spreads remain stable Constant EUR million* Total net interest income Loan spreads, % Retail Banking Total Loans 3.3 2Q14 3Q14 4Q14 1Q15 2Q15 Deposit spreads, % 2Q14 3Q14 4Q14 1Q15 2Q Retail Banking Inflation (%) 1.8% 0.6% 1.9% -0.02% 1.5% Total Deposits 1.7 2Q14 3Q14 4Q14 1Q15 2Q15 * At average exchange rate as of June 2015 (1H 15)

14 Net Fees 14 Constant EUR million* Recovery in fee growth in line with rise in cross-selling Net Fees 1H15 1H14 YoY(%) QoQ(%) Cards Bancassurance Cash Management FFII Foreign trade Checking accts Brokerage Others Q14 3Q14 4Q14 1Q15 2Q15 Total * At average exchange rate as of June 2015 (1H 15)

15 Gross income 15 Gross income up 11.2% QoQ due to business growth and higher inflation Constant EUR million* Gross income 1H15 1H14 YoY(%) QoQ(%) Net Interest Income Net Fees Subtotal 1,078 1, Other Gross income 1,188 1, Q14 3Q14 4Q14 1Q15 2Q15 * At average exchange rate as of June 2015 (1H 15) (1) Other includes Gains (losses) on financial transactions and Other operating income

16 Operating expenses 16 QoQ rise in costs due to seasonal effects and costs indexed to local inflation Constant EUR million* Operating expenses H15 1H14 YoY(%) QoQ(%) General admin. expenses Depreciation and amortization Operating expenses Q14 3Q14 4Q14 1Q15 2Q15 Efficiency ratio (with amortisations) 41.6% 37.9% +3.7pp Number of branches % Number of employees 12,276 11, % * At average exchange rate as of June 2015 (1H 15)

17 Net operating income after loan-loss provisions (LLPs) 17 Cost of credit & asset quality improving Constant EUR million* LLPs and Cost of credit Cost of credit 1.8% 1.7% 1.8% 1.7% 1.7% 1H15 1H14 YoY(%) QoQ(%) Net Operating Income LLPs Net loan-loss provisions Net op. income after LLPs Q14 3Q14 4Q14 1Q15 2Q15 NPL Coverage ratio 52% 52% NPL ratio 5.7% 5.9% * At average exchange rate as of June 2015 (1H 15)

18 Attributable profit 18 Constant EUR million* Net income rises 39.7% QoQ due to business growth, higher inflation rate and lower quarterly tax rate Attributable profit H15 1H14 YoY(%) QoQ(%) Profit before taxes Tax on profit Net income Attributable profit Q14 3Q14 4Q14 1Q15 2Q15 Effective tax rate 16.8% 14.4% * At average exchange rate as of June 2015 (1H 15)

19 Conclusions 19 Market Environment & Financial System Economic growth of 2.2% in 2015 and 2.6% in 2016, up from 1.9% in 2014 Inflation expectations increased to 4.0% for 2015 Loan growth should remain stable at 8-9% in 2015 Bank results stronger in 2Q15 due to higher inflation and stable asset quality indicators Strategy & Business Loan growth focused on segments with highest risk adjusted return Strong growth of core deposits Client base / cross-selling growing at a healthy pace QoQ Gross income and profits positively affected by business growth and higher inflation Results Cost under control and efficiency at 41.6% Cost of Credit and asset quality improving

20 Agenda 20 Macro-economic environment and financial system Strategy and business Results Appendix

21 Balance sheet 21

22 Income Statement 22

23 Quarterly statements of income 23

24 24