Banco De Chile revenue increased on 3.6% in 2016
30 Jan 2017 • About Banco De Chile (
$BODD) • By InTwits
Banco De Chile reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco De Chile has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 27,819 in 2016, 31,476 in 2015, 31,513 in 2014, 12,249 in 2013, 17,981 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 7.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Banco De Chile ($BODD) key annual financial indicators
| mln. CLP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,116,178 | 2,260,035 | 2,550,454 | 2,456,621 | 2,544,825 | 3.6% |
| Net Income | 467,610 | 513,602 | 591,080 | 558,995 | 552,249 | -1.2% |
Balance Sheet
|
|---|
| Cash | 1,081,536 | 1,247,779 | 1,315,214 | 1,887,268 | 1,784,419 | -5.4% |
| Short Term Debt | 1,267,899 | 1,115,808 | 1,195,661 | 1,771,469 | 1,235,008 | -30.3% |
| Long Term Debt | 3,436,056 | 4,577,886 | 5,244,529 | 6,275,289 | 6,364,126 | 1.4% |
Cash flow
|
|---|
| Capex | 17,981 | 12,249 | 31,513 | 31,476 | 27,819 | -11.6% |
Ratios
|
|---|
| Revenue growth | 11.0% | 6.8% | 12.9% | -3.7% | 3.6% | |
| Net Income Margin | 22.1% | 22.7% | 23.2% | 22.8% | 21.7% | -1.1% |
| CAPEX, % of revenue | 0.8% | 0.5% | 1.2% | 1.3% | 1.1% | -0.2% |
| ROIC | 7.5% | 7.5% | 7.1% | 5.9% | 5.7% | -0.2% |
| ROE | 25.0% | 23.9% | 24.5% | 21.2% | 19.6% | -1.6% |
Revenue and profitability
The company's Revenue increased on 3.6% in 2016.
Net Income marign decreased slightly on 1.1 pp from 22.8% to 21.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Banco De Chile had CAPEX/Revenue of 1.1%. The company showed small growth in CAPEX/Revenue of 0.55 pp from 0.54% in 2013 to 1.1% in 2016. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at good ROE (19.63%) while ROIC is low (5.69%). ROIC showed almost no change in 2016. ROE decreased slightly on 1.6 pp from 21.2% to 19.6% in 2016.
Leverage (Debt)
Debt decreased on 5.6% in 2016 while cash decreased on 5.4% in 2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 13.9% | 4.2% | 11.5% | 5.5% | 3.8% |
|---|
| Banco De Chile ($BODD) | | 6.8% | 12.9% | -3.7% | 3.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 2.3% |
|---|
| Banco De Chile ($BODD) | 0.8% | 0.5% | 1.2% | 1.3% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.1% |
|---|
| Banco De Chile ($BODD) | 7.5% | 7.5% | 7.1% | 5.9% | 5.7% |
