Banco de Credito e Inversiones : Bci Conference Call Presentation First Quarter 2023

Contents.

1. Macro Scenario
2. Key Financial Results
3. City National Bank of Florida

Key Calls for the US, Peruvian & Chilean Economy

• World inflation started to ease. Main Central Banks have raised the monetary policy rate on an unprecedented scale and would finish at 2Q23. Financial conditions have strengthened and some regional banks in the US and banks in Europe had liquidity problems which were solved quickly by the regulators. China showed a better performance in the first part of 2023.
• In the US, the Federal Reserve would increase its monetary policy rate one more time and then would keep that level until the end of the year. Inflation is lowering, but there is persistence in core components. GDP will grow around 1% in 2023. In Florida, the unemployment rate is lower than the national average and GDP growth is one of the largest among US states.
• In Perú, the political crisis had an impact on economic activity and prices in the last part of 2022 and the first part of 2023. Effects should be transitory and prices would start to ease in the 2Q23. The Central Bank would keep its rate until 3Q23.
• In Chile, the economy has shown a greater ability to adapt to the high interest rates. In 2023 we forecast a decrease of 0.5% of the GDP, mainly explained by lower internal demand. Inflation is going down at a slow pace, so the Central Bank would keep its rate at 11.25% until the CPI eased up with more certainty. We expected that the easing cycle would start at 3Q23.
• Yield curve didn't show a significant move in the 1Q23. The volatility of the CLP has decreased but it is still above its historical levels.