Banco De Chile Net Income decreased on 5.4% in 2015
29 Jan 2016 • About Banco De Chile (
$BODD) • By InTwits
Banco De Chile reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco De Chile has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 31,476 in 2015, 31,513 in 2014, 12,249 in 2013, 17,981 in 2012, 22,073 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.9%
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Banco De Chile ($BODD) key annual financial indicators
| mln. CLP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,907,184 | 2,116,178 | 2,260,035 | 2,550,454 | 2,456,621 | -3.7% |
| Net Income | 428,805 | 467,610 | 513,602 | 591,080 | 558,995 | -5.4% |
Balance Sheet
|
|---|
| Cash | 1,254,785 | 1,081,536 | 1,247,779 | 1,315,214 | 1,887,268 | 43.5% |
| Short Term Debt | 1,846,363 | 1,267,899 | 1,115,808 | 1,195,661 | 1,771,469 | 48.2% |
| Long Term Debt | 2,573,126 | 3,436,056 | 4,577,886 | 5,244,529 | 6,275,289 | 19.7% |
Cash flow
|
|---|
| Capex | 22,073 | 17,981 | 12,249 | 31,513 | 31,476 | -0.1% |
Ratios
|
|---|
| Revenue growth | 23.5% | 11.0% | 6.8% | 12.9% | -3.7% | |
| Net Income Margin | 22.5% | 22.1% | 22.7% | 23.2% | 22.8% | -0.4% |
| CAPEX, % of revenue | 1.2% | 0.8% | 0.5% | 1.2% | 1.3% | 0.0% |
| ROIC | 8.2% | 7.5% | 7.5% | 7.1% | 5.9% | -1.2% |
| ROE | 27.3% | 25.0% | 23.9% | 24.5% | 21.2% | -3.3% |
Revenue and profitability
The company's Revenue decreased on 3.7% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.3%. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.0%.
Return on investment
The company operates at good ROE (21.19%) while ROIC is low (5.89%). ROIC decreased slightly on 1.2 pp from 7.1% to 5.9% in 2015. ROE decreased on 3.3 pp from 24.5% to 21.2% in 2015.
Leverage (Debt)
Debt surged on 24.9% in 2015 while cash jumped on 43.5% in 2015.
Appendix 1: Peers in Banks
Below we provide Banco De Chile benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 10.0% | 9.3% | 4.2% | 11.5% | 2.4% |
|---|
| Banco De Chile ($BODD) | | 11.0% | 6.8% | 12.9% | -3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.4% | 2.4% | 2.8% | 2.2% | 2.4% |
|---|
| Banco De Chile ($BODD) | 1.2% | 0.8% | 0.5% | 1.2% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (43 companies) | 6.9% | 6.0% | 5.3% | 4.4% | 2.9% |
|---|
| Banco De Chile ($BODD) | 8.2% | 7.5% | 7.5% | 7.1% | 5.9% |
