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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of March, 2003
Commission File Number: 001-09531
BBVA BANCO BHIF
(Translation of registrant's name into English)
Huerfanos 1234
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes No X
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes No X
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Indicate by check mark whether by furnishing the information contained in this
Form, the Registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
N/A
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BBVA BANCO BHIF
TABLE OF CONTENTS
Sequential
Item Page Number
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1. BBVA Banco BHIF reports its results for the period ending
September 30th, 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BBVA BANCO BHIF
Date: March 24, 2003 By: /s/ Ramon Monell Valls
------------------------------
Name: Ramon Monell Valls
Title: Chief Executive Officer
BBVA Banco BHIF
RESULTADOS
FOR IMMEDIATE RELEASE
CONTACTS:
Leonel Segovia Fernando Olivares Julissa Fernandez
BBVA Banco BHIF BBVA Banco BHIF BBVA - New York
(562) 679 2322/ Fax (562) 2287 (562) 679 2353 (212) 728-1660 / Fax (212) 333-2905
lsegovia@bhif.cl Folivaresm@bhif.cl Julissa.Fernandez@bbvany.com
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(Santiago, Chile, November 28, 2002)--BBVA Banco BHIF (NYSE: BB, BCS: BHIF)
reports its results for the period ending September 30, 2002. Net income for the
quarter of Ch$5,507 million represents a 24.9 percent increase in comparison to
the third quarter of 2001 and a 6.8 percent rise over the second quarter of
2002. Net income growth was the result of both a sustained improvement in fee
income and stronger net interest revenues. Total loans expanded 21.7 percent
over twelve months, while deposits increased by 35.1 percent.
THIRD QUARTER HIGHLIGHTS 2002
> Net income for the third quarter amounted to Ch$5,507 million. The 24.9
percent growth in earnings over 3Q01 was obtained from positive
performances of net interest revenues, commissions and income linked to the
recovery of previously charged-off loans and of client expenses. Advances
achieved regarding credit quality have reduced the provision for loan
losses as a percentage of total loans. Cumulative earnings this year to
September amounted Ch$16,079 million, and the 20.1 percent growth compares
favorably to the Ch$13,386 million posted for the comparable period of
2001.
> Operating income rose 12% over the quarter on the back of loan portfolio
growth. The fastest growing components were net interest revenues and fee
income, which expanded at 56.2 percent and 28.5 percent, respectively. Net
interest revenues have been helped by adjustments on transactions subject
to exchange rate movements, and prompted growth amounting to Ch$15,525
million for the quarter and Ch$27,771 million on the cumulative balance. On
excluding such effects, net interest revenue growth amounted to 4.8
percent.
> Income from services is continuing to rise in importance as an alternative
source of earnings from net interest revenues. Fee income expanded 28.5
percent compared to 3Q01 and by 22.8 percent on a cumulative basis to
September. The result follows the policy introduced at the Bank to optimize
commission charges and broaden its portfolio of fee-generating products and
services. The number of checking accounts increased by 5,676 accounts over
the stock held in 3Q01, while on-line accounts rose by 31,554 over the same
period.
* All figures and comparisons are in nominal terms, based on unaudited
consolidated financial data. Currency is denominated in millions of Chilean
pesos
> The 21.7 percent increase in total loans was achieved over a period when
the banking industry managed just 1.9 percent growth. The performance
raised BHIF's market share of total loans from 5.62 percent to 6.57 percent
over the period, and the Bank also further increased its penetration of
lower risk segment clientele. This growth has enhanced the Bank's presence
in personal banking through residential and consumer loans as well as among
large corporate clients. Commercial and foreign trade loans grew at 12.4
percent and 46.7 percent, respectively, with BHIF's performance better than
that of the industry in each of the areas mentioned.
> Loan portfolio growth has been achieved along with a notable improvement in
credit quality. As a percentage of total loans, the Bank's past due loans
improved from 2.35 percent in 3Q01 to 1.94 percent in 3Q02. The risk index,
which measures the likelihood of loan losses, also improved from 1.87
percent in 3Q01 to 1.75 percent in 3Q02. According to the Superintendency
of Banks' information applicable to June 2002, the risk index for the
industry was 2.0 percent, and revealed a rising trend from February 2002,
when the figure stood at 1.92 percent.
> Client deposits performed solidly with checking account balances rising
29.5 percent compared to 3Q01. On including other sight accounts,
non-interest bearing deposits grew at 46.2 percent in comparison to 3Q01.
Time deposits also performed well, on expanding 31.6 percent over this same
period.
> The strength of the results this quarter has improved the Bank's return on
equity from 7.76 percent in 3Q01 to 9.41 percent in 3Q02. On a cumulative
basis to September 2002, the return on equity of 9.16 percent is 131 basis
points higher than for the comparable period in 2001.
Entorno Macroeconomico1
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Progress with nominalisation
In September, the Central Bank of Chile (BCCh) has begun to issue new debt
instruments intended to partially replace the long-term instruments that
currently exist. These include Chilean-peso denominated instruments (BCPs) and
instruments indexed to inflation (BCUs) and the dollar (BCDs). All of the new
securities will have a bullet structure (half-yearly interest payments and a
capital payment at maturity), which is the standard arrangement in the
industrial economies. This contrasts with the half-yearly amortization and
interest calendar of most of the instruments issued previously.
The above measures will be reinforced with issues of instruments with the
minimum amount required in an international tender in order to serve as
benchmarks in the fixed-income market ($300 million). The new instruments also
include a nominal 5-year bond, when the peso-denominated note with the longest
maturity was previously only two years.
The BCCh aims to increase the participation of external agents in the domestic
public debt market and increase its liquidity. In addition, the monetary
authorities have signalled explicitly that they intend to increase the relative
share of debt issued in Chilean pesos, which constitutes a step forward in the
nominalisation of the economy. The adjoining graph displays the composition of
bank deposits by currency, showing the progress made to date in this aspect.
- --------------------
1 Source: BBVA Latinwatch, a publication of BBVA's research services in
association with BBVA Banco Bhif and other Latin American banks within Groupo
BBVA.
Downward revision of growth forecasts
All the economic agents have lowered their economic growth forecasts for 2002
and 2003 over the last three months. A survey of more than 30 economists
conducted by the BCCh records a fall in expectations for GDP growth in 2002 and
2003 of over one point, between April and September of this year. For its part,
the BCCh released its official projections in the Monetary Policy Report for
September: a range of between 2% and 2.5% for this year (previously 3%) and
between 3.5% and 4.5% for 2003 (previously 5.8%). We have also marked down our
growth projections, to 2.2% for 2002, and to 2.8% for 2003, owing to the
downward revision of growth in Chile's trading partners. Slower world growth
will lead to lower copper prices, which will also have a negative effect on
Chilean growth.
The Ministry of Finance has lowered Chile's potential GDP growth rate (used to
determine Central Government policy on the structural surplus), from 5.9% to
4.1%. The reasons for this adjustment are the decline in the investment rate
(from levels around 27% before the last recession in 1999, to a rate close to
23% in the period 1999-2002) and the decrease in total factor productivity.
It is reasonable to expect potential growth to be revised up in future as a
result of: i) an increase in investment following the implementation of reforms
in the telecommunications, electricity and fishing sectors; ii) an improvement
in the terms of trade due to the higher rate of world growth expected in the
years ahead and the effect of the free trade treaties. Likewise, the gap between
GDP and potential GDP, projected to reach 6.6% of GDP in 2003, is also expected
to close in the coming years. In the past, this gap took five years on average
to close. If this is so, the expected annual 1.3% reduction of the output gap
would have to be added to the potential GDP growth rate of 4.1%, so that the
average growth rate expected for the 5-year period 2004-2008 would be 5.5%.
Recent Developments
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> In an overhaul of technology, we have continued to finalize the
implementation of the "Altamira" systems' platform, incorporating new
modules and effecting the development of complementary software. We expect
Altamira's implementation process to finish during the second half of 2002.
> The Bank has continued to invest in means and infrastructure to improve its
efficiency in the midterm. Aside from the previously mentioned outlays on
technology, it has invested in human resources taking on new personnel and
effecting reassignments aimed at optimizing the productivity of its
management team.
Result of Operations
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1. Net Income
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3Q02 sep-02
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Utilidad Neta 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 Sep-02
- -----------------------------------------------------------------------------------------------
Utilidad antes de impuestos 5,083 6,318 5,726 6,484 27.6% 20.7% 15,354 18,528
Impuesto a la renta (674) (904) (569) (977) 44.9% 24.5% (1,968) (2,450)
Utilidad neta 4,409 5,415 5,157 5,507 24.9% 20.1% 13,386 16,079
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Third quarter net income of Ch$5,507 million represents 24.9 percent growth
compared to 3Q01. This is the best quarterly result since the BBVA Group became
a shareholder at the Bank. The rise in earnings makes plain the positive impact
of the work undertaken in recent times to promote healthy growth at the Bank.
This has led to improved generation of interest revenues and lower
risk-associated expenses per unit asset and has been bolstered further through
the Bank's optimizing policy regarding fee charges.
Consequently, operating income increased 12 percent in 3Q02. The provision for
loan losses rose just 1.4 percent when compared to 3Q01 over a period when
credit quality indexes improved significantly. In cumulative terms for the first
three quarters, income amounted to Ch$16,079 million at a growth rate of 20.1
percent, which is a positive performance given that the cumulative income for
the banking industry to September 2002 declined 7.8 percent.
Exchange rate appreciation and interest rate cuts aided the quarterly operating
result. The Bank's fee income is still increasing thanks to efforts at
optimizing commission charges and expanding its base of products and services
that generate such income. Net income from services for the quarter amounted to
Ch$5,552 million, which is 28.5 percent more than for 3Q01. In cumulative terms
the growth was 22.8 percent.
By applying conservative criteria when issuing and tracking loans, the Bank's
improved credit risk policy has enabled provision expenses to remain almost flat
in comparison to 3Q01. Recoveries of previously charged-off loans expanded 16.3
percent on a cumulative basis, and added an additional Ch$880 million to the
result. The Bank's growing presence in segments of lower political risk clients,
during the course of the year, has also influenced the outcome. The risk index,
in turn, improved from 1.87 percent in 3Q01 to 1.75 percent in 3Q02, and is
currently 24 basis points better than in 2Q02.
Finally, quarterly pre-tax income increased 27.6 percent compared to 3Q01 while
for the period from January to September 2002, pre-tax cumulative earnings
amounted to Ch$18,528 million resulting in 20.7 growth over the comparable
period in 2001.
1.1 Net Interest Revenues
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3Q02 sep-02
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Ingreso neto por intereses 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 sep-02
- ---------------------------------------------------------------------------------------------------------------
Intereses percibidos 56,679 40,598 64,646 68,121 20.2% 4.3% 166,149 173,365
Intereses pagados (29,052) (18,699) (28,431) (24,969) -14.1% -22.2% (92,655) (72,099)
Ingreso neto por intereses 27,627 21,899 36,215 43,152 56.2% 37.8% 73,495 101,266
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Net interest revenue for 3Q02 was 56.2 percent higher than for 3Q01 and was
helped by the increase in interest earning assets (loans plus financial
investments) and by the higher exchange rate. On a cumulative basis to
September, net interest revenues expanded 37.8 percent that translates into
Chh$27,771 million higher income.
The 7.2 percent rise in the exchange rate in 3Q02 produced Ch$15,700 million in
extraordinary income from the repricing of dollar-indexed financial instruments
held in pesos compared to Ch$3,361 million in 3Q01. Even though the exchange
rate difference in 3Q01 was higher, greater client demand for exchange rate
hedging instruments (forward contracts) caused the volume of dollar-indexed peso
investments and hedging contracts to soar in 2002.
On excluding the effects of exchange rate movements on net interest revenues,
income from this source fell by 4.3 percent compared to 3Q01 and by 11 percent
on a cumulative basis this year. This has occurred in a context of successive
reductions to the reference rate and, as a result, of the Bank's average loan
rate. In the first nine months of 2001 the rate fell 150 basis points, while in
2002 over the same period, the cut mounted to 250 basis points. The downward
movement in interest rates has been offset by the big increase in
interest-earning assets.
As well as prompting the lower loan rate, the reduction in the reference rate
has also had an impact on industry deposit rates. As deposit rates are reset
faster, the Bank's interest expenses have fallen by 14.1 percent while interest
bearing deposits, the Bank's principal source of funding, have increased 31.6
percent. From January to September 2002, interest paid by the Bank fell 22.2
percent compared to same period of 2001.
The Bank's net interest margin of 6.87 percent in 3Q02 and 5.72 percent in the
first three quarters of 2002 compare favorably to the respective 5.28 percent
and 4.67 percent recorded last year. On excluding the effects of exchange rate
movements on the net interest margin, however, the net interest margin shrank in
2002. On this basis, the cumulative net interest margin to September would have
fallen 27 basis points to 3.76 percent. Even so, we ought to state that from
1Q02 to 3Q02 the net interest margin would have increased by 27 basis points.
1.2 Provision for Loan Losses
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- ----------------------------------------------------------------------------------------------
3Q02
------
Provisiones sobre colocaciones 3Q01 1Q02 2Q02 3Q02 3Q01
- ----------------------------------------------------------------------------------------------
Provisiones s. Colocaciones (flujo) (8,826) (6,188) (6,697) (8,948) 1.4%
Colocaciones totales 1,715,140 1,772,342 1,855,817 2,087,511 21.7%
Indice de riesgo * 1.87% 2.01% 1.99% 1.75%
Provisiones obligatorias requeridas
en base a indice de riesgo 32,022 35,660 36,931 36,448 13.8%
Provisiones sobre colocaciones 39,649 43,069 43,329 44,111 11.3%
Provisiones sobre colocaciones 2.31% 2.43% 2.33% 2.11%
como % del total de colocaciones
- ----------------------------------------------------------------------------------------------
Provision for loan losses increased just 1.4% in comparison to 3Q01, and is
consistent with the reduction in the level of past due loans and the improvement
in the Bank's risk index. Credit quality has improved due to the conservative
emphasis placed on managing credit risk, from the outset and tracking the loans,
and runs complementary to ongoing monitoring of the inherent risks of each
economic sector. It is noteworthy, therefore, that the allowance the Bank has
set aside exceeds the mandatory amount determined by the risk index by over
Ch$7,000 million.
On a cumulative basis, the provision for loan losses to September 2002 also rose
by 1.4 percent with respect to the comparable period a year earlier, raising the
allowance for loan losses 11.3 percent at 3Q02.
1.3 Income from Services, net
- -----------------------------
- ------------------------------------------------------------------------------------------------------------------
3Q02 sep-02
---------------
Ingreso neto por comisiones 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 sep-02
- ------------------------------------------------------------------------------------------------------------------
Ingreso por comisiones 5,446 5,877 5,971 6,749 23.9% 18.0% 15,761 18,597
Gasto por comisiones (1,124) (1,242) (1,163) (1,196) 6.4% 1.5% (3,548) (3,601)
Ingreso neto por comisiones 4,322 4,635 4,808 5,552 28.5% 22.8% 12,214 14,996
- ------------------------------------------------------------------------------------------------------------------
Continuing the trend of previous quarters, fee income increased by 28.5 percent
compared to 3Q01 to total Ch$5,552 million in 3Q02. This result reflects the
greater strategic importance of fee income for the Bank, and is the consequence
of BHIF's efforts to increase earnings from this source by optimizing its policy
of commission charges as well as by expanding its base of fee-generating
products and services. The significant contributions to the growth of fee income
came from commissions on checking accounts, automatic tellers, the I.N.P.
contract, and on the intermediation of syndicated loans. The latter component is
especially relevant, as these are earnings from a market segment in which BHIF
has started to participate actively taking advantage of the size and support of
BBVA.
On a cumulative basis the 22.8 percent growth to September 2002 in income from
services, net, contributed an additional Ch$2,782 million such that this source
of income now accounts for 16.9 percent of total operating income, compared to
14.8 percent in 3Q01 and 12.8 percent in 3Q00.
1.4 Other Operating Income, net
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- --------------------------------------------------------------------------------------------------------------------
3Q02 sep-02
---------------
Otros ingresos operacionales netos 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 sep-02
- --------------------------------------------------------------------------------------------------------------------
Ingresos por intermediacion 3,192 2,312 2,082 6,014 88.4% 41.7% 7,344 10,408
Perdidas por intermediacion (527) (555) (1,417) (3,268) 519.9% 619.9% (728) (5,241)
Utilidades de cambio (netas) (6,023) (1,075) (12,501) (19,428) 222.6% 226.4% (10,111) (33,005)
Total (3,359) 682 (11,837) (16,682) 396.7% 696.6% (3,495) (27,837)
- --------------------------------------------------------------------------------------------------------------------
A substantial loss was recorded in other operating income following exchange
rate movements at the close of 3Q02. The position is an accounting phenomenon,
as it does not consider dollar-indexed investments in pesos as foreign exchange
assets, and thus generates a significant operating loss following exchange rate
appreciation. This accounting loss is sharply reversed on taking into account
the income generated from dollar-indexed investments to cover the position.
Net income from the repricing of financial instruments increased 88.4 percent in
3Q02 in comparison to 3Q01 following a sharp reduction in interest rates on
Central Bank instruments over the period. In 3Q02, the rate on 8-year PRCs fell
from 4.46 percent to 2.56 percent.
1.5 Other Income and Expenses
- -----------------------------
- ---------------------------------------------------------------------------------------------------------------
3Q02 sep-02
Otros ingresos y gastos 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 Sep-02
- ---------------------------------------------------------------------------------------------------------------
Recuperacion de creditos castigados 2,171 1,818 2,219 2,251 3.7% 16.3% 5,407 6,287
Ingresos no operacionales 706 739 1,476 1,441 104.1% 69.1% 2,161 3,655
Gastos no operacionales 288 (754) (767) (1,075) 24.3% (2,088) (2,595)
Participaciones minoritarias (106) 27 13 47 (65) 88
Total otros gastos e ingresos 3,059 1,830 2,940 2,665 -12.9% 37.3% 5,416 7,435
- ---------------------------------------------------------------------------------------------------------------
The balance of other income and expenses at 3Q02 reveals a decrease of 12.9
percent compared to 3Q01 yet a cumulative increase of 37.3 percent to September
2002. The decline in the quarterly result is caused by Ch$1,075 million of
non-operating expenses that are charge-offs on assets received in lieu of
payment under current regulatory guidelines and for such operations. Income from
the recovery of previously charged-off loans, in contrast, rose by 3.7 percent
for the quarter and by 16.3 percent on cumulative basis, and constitutes a
strong source of rising earnings. In addition to the recovery of previously
charged-off loans, the doubling of non-operating income compared to 3Q01 is the
result of a policy decision to boost the recovery of client-related expenses.
1.6 Operating Expenses
- ----------------------
- ----------------------------------------------------------------------------------------------------------------------
3Q02 sep-02
---------------
Gastos operacionales 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 Sep-02
- ----------------------------------------------------------------------------------------------------------------------
Remunerac. y gastos en personal (7,664) (7,290) (7,809) (7,922) 3.4% 4.8% (21,976) (23,022)
Gastos administrativos y otros (6,834) (6,817) (7,186) (7,109) 4.0% 8.5% (19,454) (21,112)
Depreciacion y amortizacion (2,231) (3,053) (3,245) (3,235) 45.0% 54.0% (6,190) (9,533)
Total gastos operacionales (16,730) (17,160) (18,241) (18,266) 9.2% 12.7% (47,620) (53,667)
- ----------------------------------------------------------------------------------------------------------------------
Total operating expenses for 3Q02 rose 9.2 percent compared to 3Q01 and by 12.7
percent on an cumulative basis to September 2002. Within this, though, salaries
and administrative expenses expanded at the lower rates of 3.4 percent and 4.0
percent respectively. Growth in each case was lower than that recorded in 2Q02
as expenses were reduced through an ongoing search for saving and points of
synergy. Amortization of the Bank's investment in its new computing platform
continues to contribute to the substantial increase in depreciation and
amortization expenses, as these expanded 45 percent in comparison to 3Q01 and by
54 percent on accumulated basis, and are the main reason for the increase in
total operating expenses.
Operating efficiency at the Bank improved from 58.52 percent in 3Q01 to 57.04
percent in 3Q02. On taking into account the higher amortization expenses of
around Ch$1,000 million a month, net of this item BHIF's stands at 47.7 percent
in 3Q02 compared to 58.5 percent at 3Q01. The better efficiency shows that the
growth in our business has been absorbed within the series of productivity
improvements derived from the investment in the new technology.
2. Liquidity and Funding
- ------------------------
- ----------------------------------------------------------------------------------------------
3Q02
--------
Liquidez y financiamiento 3Q01 1Q02 2Q02 3Q02 3Q01
- ----------------------------------------------------------------------------------------------
Depositos
No devengadores de interes
Cuentas corrientes 157,678 167,543 181,638 204,182 29.5%
Otros depositos vista 163,732 251,887 224,369 265,743 62.3%
Subtotal 321,410 419,430 406,007 469,925 46.2%
Devengadores de interes
Cuentas de ahorro y depositos plazo 1,027,044 1,074,870 1,180,372 1,351,766 31.6%
Total Depositos 1,348,455 1,494,300 1,586,379 1,821,691 35.1%
Prestamos y otras obligaciones
Prestamos del Banco Central 14,605 17,519 9,475 8,961 -38.6%
Documentos vendidos con pacto 112,109 179,337 241,879 245,587 119.1%
Letras hipotecarias 252,468 245,272 253,682 263,806 4.5%
Otras obligaciones
Bonos Subordinados 30,567 30,787 31,176 30,996 1.4%
Otros bonos 45,076 43,345 40,797 41,930 -7.0%
Prestamos de Inst. Fin. locales 82,033 118,999 96,539 95,245 16.1%
Prestamos del exterior 64,504 110,935 51,281 129,466 100.7%
Otras obligaciones varias 47,263 30,368 37,634 47,838 1.2%
Total prestamos y otras oblig. 648,625 776,562 762,463 863,829 33.2%
Otros pasivos 168,170 233,854 190,069 160,493 -4.6%
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Total deposits, sight accounts and time deposits, grew at 35.1 percent in 3Q02,
year on year. Sight accounts rose 46.2 percent as checking account balances
increased by 29.5 percent in comparison to 3Q01. This performance is linked to
the Bank's increase of 5,676 checking accounts at 3Q02 taking its total to
81,074 clients. Other sight account balances climbed 62.3 percent over the
period and has advanced the share of non-interest bearing deposits, comprised of
client-drawn funds to 25.8 percent from 23.8 percent in 3Q01. In its efforts to
raise non-interest bearing funds by expanding the stock of sight accounts,
accounts held at BHIF increased by more than 31,500 units year on year and at
3Q02 they numbered 138,434.
Interest bearing deposits grew at 31.6 percent from 3Q01 to 3Q02. With this line
of funding expanding at a lower rate than sight accounts, the proportion of
interest bearing funds to total client-drawn deposits is two percent lower,
thereby easing the pressure on the Bank's cost of funding. Furthermore, interest
bearing deposits obtained through the Bank's branch network have been
encouraged, largely to reduce the proportion of corporate clients who generally
have greater bargaining power that would raise the cost of such funds.
In regard to institutional debt, Central Bank borrowings have fallen 38.6
percent year on year. Securities sold under repurchase agreements, on the other
hand, reveal the opposite trend growing by 119 percent compared to 3Q01,
although they have remained stable since 2Q02. Even though borrowings from
foreign banks have doubled since 3Q02, client-drawn funds represent more twice
the amount of obligations to domestic and foreign institutions.
3. Interest Earning Assets
- ---------------------------------------------------------------------------------------------------------------------
3Q02
-----
Activos generadores 3Q01 1Q02 2Q02 3Q02 3Q01
- ---------------------------------------------------------------------------------------------------------------------
Inversiones Financieras
Documentos del Estado 188,814 182,961 156,789 216,342 14.6%
Instrumentos comprados bajo pacto 7,527 14,490 46,040 68,728 813.1%
Instrumentos en garantia bajo pacto 104,270 176,867 240,138 215,491 106.7%
Otras inversiones financieras 88,097 59,468 59,525 78,663 -10.7%
Total Inversiones Financieras 388,708 433,786 502,492 579,224 49.0%
Colocaciones
Comerciales 702,169 743,995 731,905 789,154 12.4%
Consumo 166,917 171,668 181,035 196,816 17.9%
En Letras Hipotecarias 234,447 229,108 235,563 243,213 3.7%
En Mutuos Hipotecarios 211,152 242,780 262,333 278,299 31.8%
Comercio Exterior 173,497 157,285 212,027 254,503 46.7%
Interbancarias 0 0 0 73,532
Contratos de Leasing 61,157 64,940 67,020 64,420 5.3%
Otros creditos vigentes 48,355 47,108 48,148 72,668 50.3%
Vencidas 40,353 39,667 38,592 40,527 0.4%
Contingentes 77,094 75,793 79,194 74,379 -3.5%
Total colocaciones 1,715,140 1,772,342 1,855,817 2,087,511 21.7%
Provisiones sobre colocaciones (39,649) (43,069) (43,329) (44,111) 11.3%
Total colocaciones netas 1,675,492 1,729,273 1,812,488 2,043,400 22.0%
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Total loans at the Bank have expanded 21.7 percent since 3Q01 on strong consumer
and company lending, given that to August 2001 the economy grew at only 1.7
percent. Our growth easily outpaced that of the banking industry, which to
September only managed a 1.9 percent increase. The Bank's year on year loan
growth has exhibited a rising trend since 1Q02, when total loans expanded by
10.0 percent year on year. As a point of comparison, industry growth for total
loans slid back from 5.5 percent in 1Q02 to the 1.9 percent mentioned above at
3Q02.
Within personal banking, consumer loan growth rose 17.9 percent following this
year's assorted marketing campaigns. The high degree of consumer loan
penetration among Bank clients is also notable, and squares with client profiles
drawn up in the business strategy, thus reducing exposure in riskier segments
considerably. In regard to transaction volumes, consumer loan transactions
extended to Bank clients increased by 30,340 from 3Q01 to 3Q02.
Also in personal banking, residential loans (granted under other housing loans)
rose 31.8 percent compared to 3Q01. Re-launching the "Hipotecon" product has
pushed average monthly invoicing for such loans in 2002 up to Ch$11,000 million
(US$14 million) and represents 26 percent growth compared to the average monthly
amounts billed in 2001. These growth rates have led to substantial 12- month
gains in market share both in consumer and residential housing loans. Over the
year to 3Q02, BHIF's share of consumer loans improved 41 basis points to 7.73
percent, while its share of other housing loans increased by 61 basis points to
7.84 percent.
Quarterly commercial loan growth of 12.4 percent, year on year, owes much to the
emphasis BHIF has placed on raising its presence in corporate banking. This
growth, achieved in a period when industry commercial loans declined by 0.3
percent, truly reflects the success of measures introduced by management in the
second quarter to boost the Bank's activity in a highly attractive segment and
one that has been identified as a principal growth driver. In a similar fashion,
foreign trade loans expanded 46.7 percent to September, boosted by the 100
percent plus increase, year on year, in credit business for financing imports.
Even without the aid of the appreciation of the exchange rate growth over the
period was 7.4 percent.
Expansion of the Bank's total loans has been achieved while maintaining the
volume of past due loans stable. Past due loans only aggregated 0.4 percent in
the 12 months to 3Q02. This performance is consistent with the policy of seeking
to expand lending in low risk segments while constantly tracking business.
Anticipating events such as the Argentine crisis and the instability of the
Brazilian economy has meant that the Bank does have a particularly high exposure
in companies concentrated in these countries which, in turn, means that our past
due loans have been barely affected by these situations.
4. Credit Quality
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Calidad de Cartera
Clasificacion de creditos 3Q01 1Q02 2Q02 3Q02
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A 77.60 76.90 75.60 77.90
B 17.50 17.50 19.10 17.50
B- 3.50 4.20 3.90 3.40
C 1.10 0.90 0.90 0.80
D 0.40 0.50 0.50 0.50
Indice de riesgo * 1.87% 2.01% 1.99% 1.75%
C. Vencida/Total coloc 2.35% 2.24% 2.08% 1.94%
Provisiones/Total coloc. 2.31% 2.43% 2.33% 2.11%
Provisiones/C. Vencida. 98.26% 108.57% 112.27% 108.84%
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*datos no consolidados
At the close of the third quarter, the Risk Index, the measure of the likelihood
of losses on loans, contracted significantly. The index fell 12 basis points
over the period 3Q01 to 3Q02 and by 24 basis points over the figure for 2Q02.
This performance goes against the trend prevailing within the industry, whose
risk index deteriorated over the period to June 2002. The improvement in the
Bank's risk index resulted from a higher proportion of A and B category loans
and a reduction of class C loans.
Furthermore, past due loans, as a percentage of total loans, fell from 2.35
percent to 1.94 percent from 3Q01 to 3Q02, while the coverage ratio improved
from 98.26 percent to 108.84 percent. Over this same period, allowances over
total loans fell by 20 basis points, given the soundness of our portfolio's
growth, as we prize growth in low risk segments. Allowances have increased by
more than 11 percent, and easily exceed the level of provisions required to
cover our risk index.
5. Shareholders' Equity
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3Q02
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Capital y reservas 3Q01 1Q02 2Q02 3Q02 3Q01
- --------------------------------------------------------------------------------
Capital 146,167 146,864 148,339 149,371 2.2%
Reservas 81,046 94,110 80,560 84,623 4.4%
Utilidad acumulada del ano 13,386 5,415 10,572 16,079 20.1%
Total capital y reservas 240,599 246,389 239,470 250,073 3.9%
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Shareholders' equity at the Bank rose 3.9% closing the quarter to September 2002
at Ch$250,073 million. In regard to Basle standards, the Bank's (Tier II capital
ratio of) 12.53% in 3Q02 easily exceeds the 8 percent the current norms demand.
These have been calculated on a consolidated basis since June 2002. Moreover,
our basic capital divided by total consolidated assets stood at 7.53% compared
to an average figure of 6.79 percent for our competitors.
Following the September 2000 capital injection, BHIF has achieved sustained
asset growth without needing to seek fresh funds and, currently, has among the
strongest equity positions among its competition, in spite of posting over 20
percent loan growth.
Informacion financiera relevante
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Estado de resultados consolidado (no auditado)
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3Q02 sep-02
Estado de Resultados Consolidado ----------------
(No auditado) 3Q01 1Q02 2Q02 3Q02 3Q01 sep-01 sep-01 sep-02
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Ingreso neto por intereses 27,627 21,899 36,215 43,152 56.2% 37.8% 73,495 101,266
Provisiones sobre colocaciones (8,826) (6,188) (6,697) (8,948) 1.4% 1.4% (21,535) (21,833)
Ingreso neto por comisiones 4,322 4,635 4,808 5,552 28.5% 22.8% 12,214 14,996
Otros ingresos operacionales, netos (3,359) 682 (11,837) (16,682) 396.7% 696.6% (3,495) (27,837)
Otros ingresos y gastos 3,059 1,830 2,940 2,665 -12.9% 37.3% 5,416 7,435
Gastos de operacion (16,730) (17,160) (18,241) (18,266) 9.2% 12.7% (47,620) (53,667)
Correccion monetaria (991) 629 (1,464) (960) -3.2% -42.1% (3,098) (1,795)
Interes minoritario (19) (7) 1 (29) 50.0% 58.2% (23) (36)
Utilidad antes de impuestos 5,083 6,318 5,726 6,484 27.6% 20.7% 15,354 18,528
Impuesto a la renta (674) (904) (569) (977) 44.9% 24,5% (1,968) (2,450)
Utilidad neta 4,409 5,415 5,157 5,507 24.9% 20.1% 13,386 16,079
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Balance Resumido
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3Q02
-----
Activos 3Q01 1Q02 2Q02 3Q02 3Q01
- --------------------------------------------------------------------------------
Fondos disponibles 171,417 315,743 254,536 265,530 54.9%
Inversiones Financieras 388,708 433,786 502,492 579,224 49.0%
Colocaciones netas 1,675,492 1,729,273 1,812,488 2,043,400 22.0%
Otros activos 170,315 272,394 208,959 208,046 22.2%
Total activos 2,405,932 2,751,197 2,778,474 3,096,199 28.7%
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3Q02
Pasivos 3Q01 1Q02 2Q02 3Q02 3Q01
- --------------------------------------------------------------------------------
Depositos 1.348.455 1.494.300 1.586.379 1.821.691 35,1%
Prestamos 648.625 776.562 762.463 863.829 33,2%
Otras obligaciones 168.170 233.854 190.069 160.493 -4,6%
Interes minoritario 84 93 93 114 35,8%
Capital y reservas 240.599 246.389 239.470 250.073 3,9%
Total pasivos 2.405.932 2.751.197 2.778.474 3.096.199 28,7%
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Indicadores 3Q01 1Q02 2Q02 3Q02 sep-01 sep-02
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Rentabilidad
ROE 7.76% 8.99% 9.01% 9.41% 7.85% 9.16%
ROA 0.73% 0.79% 0.74% 0.71% 0.74% 0.69%
ROAE 7.44% 8.83% 8.56% 8.96% 7.60% 8.78%
ROAA 0.70% 0.83% 0.75% 0.76% 0.70% 0.78%
Ing. Operac./A. Generadores prom. 5.47% 4.86% 5.01% 5.10% 5.22% 4.99%
Margen de interes neto (NIM) 5.28% 3.91% 6.22% 6.87% 4.67% 5.72%
Utilidad por accion
Acciones emitidas (millones) 361.22 361.22 361.22 361.22 361.22 361.22
Utilidad neta por accion (Ch$) 12.20 14.99 14.28 15.24 37.06 44.51
Utilidad neta por ADS (Ch$) 122.05 149.90 142.78 152.44 370.56 445.12
Utilidad neta por ADS (US$) 0.18 0.23 0.20 0.20 0.53 0.60
Acciones emitidas (promedio) (millones) 361.22 361.22 361.22 361.22 361.22 361.22
Utilidad neta por accion (Ch$)* 12.20 14.99 14.28 15.24 37.06 44.51
Utilidad neta por ADS (Ch$)* 122.05 149.90 142.78 152.44 370.56 445.12
Utilidad neta por ADS (US$)* 0.18 0.23 0.20 0.20 0.53 0.60
Eficiencia
Gastos oper./Ingresos oper. 58.52% 63.05% 62.50% 57.04% 57.92% 60.69%
Gastos oper./activos total prom. 2.66% 2.62% 2.64% 2.52% 2.50% 2.59%
Calidad de Cartera
C. vencida/Total colocaciones 2.35% 2.24% 2.08% 1.94% 2.35% 1.94%
Provisiones/Total colocaciones 2.31% 2.43% 2.33% 2.11% 2.31% 2.11%
Indice de riesgo 1.87% 2.01% 1.99% 1.75% 1.87% 1.75%
Provisiones/C. Vencida 98.26% 108.57% 112.27% 108.84% 98.26% 108.84%
Saldos promedio
Activos generadores 2,092,028 2,242,054 2,330,514 2,511,575 2,099,010 2,361,381
Activos totales 2,512,025 2,618,016 2,768,272 2,893,859 2,538,761 2,760,049
Capital y reservas 236,864 245,387 240,927 245,812 234,882 244,042
Otros datos
Tasa de Inflacion 1.35% 0.46% 0.34% 1.67% 2.82% 2.48%
Variacion de la UF 0.58% -0.40% 0.97% 0.61% 2.06% 1.18%
Tipo de Cambio (Ch$/US$) 696.23 664.44 697.62 747.6 696.23 747.62
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*proforma
Forward looking statements
- --------------------------
This news release may contain words, such as "believe", "expect", "estimate",
"intend", and "anticipate" and similar expressions, that identify
forward-looking statements, which reflect the Bank's views about future events
and financial performance. Such words may deem this news release to include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, that involve risk and uncertainty, including financial, regulatory
environment and trend projections. Although the Bank believes that its
expectations are based on reasonable assumptions, it can give no assurance that
its expectations will be achieved. The important factors that could cause actual
results to differ materially from those in the forward-looking statements herein
include, without limitation, the Bank's degree of financial leverage, risks
associated with debt service requirements and interest rate fluctuations, risks
associated with any possible acquisitions and the integration thereof, risks of
international business, including currency risk, regulation risks, contingent
liabilities, as well as other risks referred in the Bank's filings with the SVS
and SEC. The Bank does not undertake any obligation to release publicly any
revisions to its forward-looking statements to reflect events or circumstances
after date hereof or to reflect the occurrence of unanticipated events.