Second Quarter 2019 Investor Presentation
International Banking Financial Performance
Strong performance across the Pacific Alliance
FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2
Reported
YEAR-OVER-YEAR HIGHLIGHTS²
Q2/19
Y/Y
Q/Q
•
Revenue
$3,356
+22% (1%)
Expenses
$1,710
+19% (3%)
PCLS
$628
+87% 31%
Net Income
$700
+2% (13%)
Productivity Ratio
51.0%
(150bps) (130bps)
Net Interest Margin
4.58%
(16bps) +6bps
PCL Ratio³
1.71%
+49bps +43bps
PCL Ratio on Impaired Loans³
Adjusted5
1.29%
(9bps) +6bps
•
Expenses
$1,677
PCLS
$477
Net Income
$787
+18% (3%)
+42% 0%
+14% (5%)
Productivity Ratio
50.0%
(210bps) (110bps)
PCL Ratio³
1.30%
1,5
+8bps +2bps
ADJUSTED NET INCOME 10 ($MM) AND NIM4 (%)
•
4.74%
4.70%
4.52%
4.52%
4.58%
805
787
•
715
746
683
Q2/18
Q3/18
1 Attributable to equity holders of the Bank
Q4/18
Q1/19
Q2/19
•
•
Adjusted Net Income up 14%
。 Strong loan growth across the Pacific Alliance
Revenues up 22%
o Pacific Alliance up 28%, includes impact of acquisitions
Loans up 29%
o Pacific Alliance up 42% includes impact of Chile,
Colombia and Peru acquisitions
NIM down 16 bps
。 Primarily driven by the business mix impact of
acquisitions (BBVA Chile)
ONIM up 6 bps Q/Q
Expenses up 18%
o Includes impact of acquisitions
。 Business volume growth and inflation
。 Productivity ratio improvement of 210 bps5
Quarterly operating leverage of +5.0%5
PCL ratio on impaired loans³ improved 9 bps
Strong growth in digital sales
2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
4 Net Interest Margin is on a reported basis
5 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of
intangibles related to current and past acquisitions
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