Investor Presentaiton
INTERNATIONAL BANKING
Strong quarter driven by continued earnings momentum in Pacific Alliance
FINANCIAL PERFORMANCE & METRICS ($MM) 1,2
YEAR-OVER-YEAR HIGHLIGHTS2
Net Income up 15%6
。 Strong asset and deposit growth in Pacific Alliance
o Increased contribution from affiliates
。 Lower tax rate
Revenue up 7%
Q2/18
Y/Y
Q/Q
Revenue
$2,742
+7%
(1%)
Expenses
$1,438
+5%
(2%)
PCLs
$340
(4%)
Net Income
$675
+15%
.
Productivity Ratio
52.5%
(80bps)
(80bps)
Net Interest Margin
4.74%
(26bps)
+8bps
•
Loans up 11%
PCL Ratio³, 4
1.22%
(11bps)
(4bps)
PCL Ratio
•
1.38%
on Impaired Loans³, 4
+5bps
+13bps
NET INCOME 1,5 ($MM) AND NIM5 (%)
5.00%
4.77%
4.67%
•
4.66%
4.74%
667
675
•
595
614
605
•
o Pacific Alliance up 11%
o Pacific Alliance strong loan growth up 16%
PCL ratio³, 4 on impaired loans up 5 bps
。 Mainly related to one previously impaired account
impacted by the hurricane related events in Puerto
Rico
Expenses up 5%
。 Business volume growth, inflation and higher
technology costs partly offset by cost-reduction
initiatives
Positive YTD operating leverage
YTD productivity improvement of 140 bps
Q2/17
Q3/17
1 Attributable to equity holders of the Bank
Q4/17
Q1/18
Q2/18
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 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
5 Net Income and Net Interest Margin is on a reported basis
6 The benefit from the Alignment of reporting period of Chile with the bank contributed 4% to the net income growth
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