Banco de Crédito e Inversiones (BCI) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 and 1H 2024 results, with net income up 12.9% YoY, driven by local operations, digital transformation, and strategic focus on sustainable growth.

• Total loans grew 11.1% YoY, mainly from commercial and mortgage segments, with the highest annual market share increase in total and mortgage loans.

• Digital account customer base expanded by over 700,000, reflecting digital transformation success and capturing 30% of new accounts by May.

• International operations marked by consolidation in Florida, 25th anniversary in Miami, and successful bond issuance in Peru.

• Launched global sustainable debt mutual fund and BciPlus+ credit card, and created GenAI Excellence Center.

Financial highlights

• Operating income up 17% in H1 2024; net income up 12.9% YoY to Ch$420,868 million; net service fee income up 21.3%.

• Net interest margin (NIM) rose 41 bps to 4.23% locally; City National Bank NIM surpassed 2%.

• Fees increased 16.1% YoY in Q2 2024; provision expenses decreased 26% YoY.

• Local deposits up 9.8% due to shift from time to demand deposits; total deposits up 6.08% YoY.

• CET1 capital ratio increased by 130 bps to 11.12% as of June 2024.

Outlook and guidance

• Net income guidance raised to ~10% growth for 2024, up from previous 6-8%.

• Local loan growth expected at 5-7% for the year; commercial loans at 7-9%; consumer loans recovering to mid-single digits.

• NIM expected to remain flat for the full year; local expense growth to stay below inflation.

• Efficiency ratio targeted at 45-46% for 2024, aiming for 42% by 2026; MACH digital platform expected to reach break-even by end of 2026.

• US and Peru rates expected to decline; Chile GDP growth forecast at 2.3% for 2024.