Inversiones La Construcción (ILC) Q2 2024 earnings summary

Executive summary

• Q2 net loss was Ch$6,157 million versus profit of Ch$54,253 million a year earlier; excluding Consalud’s Ch$31,405 million Short Law liability, Q2 profit was Ch$25,247 million.

• First-half net profit was Ch$53,095 million versus Ch$89,132 million; excluding the liability, profit was Ch$84,499 million, down 5.2% YoY.

• Financial subsidiaries and RedSalud supported results, while Consalud losses and weaker financial markets weighed on performance.

Financial highlights

• Banco Internacional’s Q2 net interest and adjustment margin rose 15.7% YoY to CLP 32.8 billion; treasury result increased 54.9% to CLP 9.7 billion.

• RedSalud Q2 EBITDA rose 14.7% YoY to CLP 24.8 billion, with margin improving to 13.1% from 12.4%.

• AFP Habitat Chile revenue rose 4.9% YoY to Ch$62.1 billion; Q2 profit fell 39% to CLP 18.7 billion.

• Vida Cámara premium income rose 48%; beneficiaries reached 544,000 at June 2024, up 20% YoY.

• Consalud recognized a Ch$31,405 million after-tax IFRS liability for Short Law refunds; its Q2 loss excluding the liability was Ch$13.8 billion.

Outlook and guidance

• Growth is expected to come primarily from financial businesses, with RedSalud an important healthcare growth platform.

• Consalud’s refund plan and extraordinary premium remained subject to Superintendency review and requested amendments.

• No Consalud capital requirements are foreseen; refunds are excluded from regulatory financial ratios and guarantee requirements.

• An agreement to acquire an additional 10.9% of Banco Internacional provides options to acquire remaining shares by May 31, 2027.