Yahoo Finance

• Net Income Growth: Increased by 17.5% year over year.

• Income Before Taxes: Grew by 31.8% year over year.

• Operating Income: Increased by 8.6% year over year.

• Net Interest Margin (NIM): Improved by 28 basis points to 4.16%.

• Loan Growth: Total loans grew by 6.6% year over year, reaching $36.8 billion.

• Demand Deposits: Increased by 15%.

• Equity Growth: Grew by 15.5%, amounting to nearly $1 billion.

• Capital Ratio: CET1 ratio stood at 11.1% as of December 2024.

• Operating Expenses: Consolidated operating expenses rose by 2.6%.

• Net Fees: Increased by 17% year over year.

• City National Bank NIM: Improved by 54 basis points.

• City National Bank Client Deposits: Increased by $321 million or 2% in 2024.

• City National Bank Loan Growth: Core loans increased by $799 million year over year, growing by 4%.

• City National Bank CRE Portfolio: Weighted average LTV of 49% with a debt service coverage ratio of 1.7 times.

• Warning! GuruFocus has detected 6 Warning Sign with XSGO:BCI.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banco de Credito e Inversiones SA (XSGO:BCI) reported a strong financial performance in 2024, with income before taxes growing by 31.8% and net income increasing by 17.5% year over year.

• The bank successfully increased demand deposits by 15%, reducing its cost of funds and reinforcing a robust funding position.

• BCI's net interest margin (NIM) improved by 28 basis points, driven by effective pricing strategies and lower funding costs.

• The bank's digital strategy and new branch model have enhanced customer experience, leading to shorter waiting times and improved client satisfaction.

• BCI's international strategy has been effective, with consolidated assets abroad now representing 36% of total assets, supporting diversification and risk management.

Negative Points

• The economic environment in 2024 was challenging, marked by high interest rates and inflation, which impacted growth.

• BCI's cost of risk is expected to remain flat, with some deterioration anticipated in the mortgage loan portfolio due to higher unemployment and inflation effects.

• The bank's net interest margin in Chile is projected to be flat in 2025, influenced by lower inflation and the absence of central bank credit lines.

• City National Bank's 2024 results were affected by nonrecurring items, including a $50 million loss from investment repositioning.

• BCI's consumer loan portfolio growth has been marginal, reflecting a strategic focus on higher-income segments and a more selective approach.