Investor Presentation Second Quarter 2018
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
o Lower tax rate
Q2/18
Y/Y
Q/Q
Revenue $2,742
+7%
(1%)
.
Expenses
$1,438
+5%
(2%)
PCLS
$340
(4%)
Net Income
$675
+15%
Productivity Ratio
52.5%
(80bps)
(80bps)
.
Net Interest Margin
4.74%
(26bps)
+8bps
•
PCL Ratio 3, 4
1.22%
(11bps)
(4bps)
Loans up 11%
PCL Ratio
1.38%
on Impaired Loans 3,4
+5bps
+13bps
NET INCOME 1,5 ($MM) AND NIM 5 (%)
5.00%
4.77%
4.67%
4.66%
4.74%
Revenue up 7%
o Pacific Alliance up 11%
o Pacific Alliance strong loan growth up 16%
• PCL ratio 3, 4 on impaired loans up 5 bps
○ Mainly related to one previously impaired account
impacted by the hurricane related events in Puerto
Rico
•
667
675
595
614
605
•
Expenses up 5%
o 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
Q4/17
Q1/18
Q2/18
1 Attributable to equity holders of the Bank
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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