Inversiones La Construcción (ILC) Q1 2023 earnings summary

Executive summary

• Q1 2023 profit was Ch$34,878 million, up 44.3% YoY, driven mainly by financial subsidiaries; higher non-operating income and lower taxes offset weaker operating results.

• Trailing 12-month profit reached CLP157.3b with 18% ROE; healthcare results were mixed, with Consalud returning to profit while RedSalud and Vida Cámara faced margin pressure.

Financial highlights

• Net operating income was Ch$53,964 million, down 17.5% YoY; the non-operating loss narrowed to Ch$10,261 million from Ch$31,274 million, and income tax expense fell 31.2%.

• The Ch$21,013 million increase in non-operating income reflected stronger AFP Habitat and AAISA results, better investment portfolio performance, and lower UF debt adjustments.

• Assets totaled Ch$14,423,406 million at March 2023, up 0.8% from December 2022; liabilities rose 0.6% and equity attributable to owners increased 2.7%.

Segment performance

• AFP Habitat profit reached Ch$26,218 million, up 113.6% YoY; revenue grew 11.2% on higher average taxable income, partly offset by 17.2% higher administrative expenses.

• AAISA profit rose to Ch$9,200 million from Ch$3,963 million, mainly on stronger reserve profitability at Colfondos; revenue declined 1.8% YoY.

• Confuturo profit was Ch$13,269 million, down 64.5% YoY; written premiums rose 182.8%, while higher annuity reserves, insurance costs, and lower foreign fund returns weighed on results.

• Banco Internacional profit increased 56.4% to Ch$12,457 million; gross operating income rose 18.6%, supported by higher treasury income and released loan-loss provisions.

• RedSalud revenue rose 10.3% to CLP159b, while EBITDA fell to Ch$14,266 million and margin to 9.0%; Consalud earned Ch$7,063 million versus a Ch$11,212 million loss, and Vida Cámara profit fell 27.4% to Ch$678 million.