Banco de Chile (BCH) 2017 Q1 法說會逐字稿

Good morning, everyone, and welcome to Banco de Chile's First Quarter 2017 Results Conference Call. If you need a copy of the press release, it is available on the company's website. Today with us, we have Mr. Rodrigo Aravena, Chief Economist and Senior VP of Institutional Relations; Mr. Pablo Mejia, Head of Investor Relations; and Daniel Galarce, Head of Financial Control.

Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties and actual results may differ materially. Please refer to the detailed note in the company's press release regarding forward-looking statements. I will now turn the call over to Mr. Rodrigo Aravena. Please go ahead.

Well, good morning, everyone. And thanks for joining us today on our conference call for the first quarter '17 result. To begin, I will present some comments regarding the macro environment in Chile and discuss our strategy in how we have been accomplishing the goals we have set. After this, Pablo Mejia, our Head of Investor Relations, will discuss our first quarter '17 financial results.

Please turn to Slide #3. In general, the Chilean economy continues posting a similar trend to that observed in the previous quarter. Slight economic growth, low inflation and interest rate cuts. In particular, the economy grew only 0.2% in March following a 1.3% contraction in February. As a consequence, the GDP grew 0.2% in the first quarter after increasing by 0.5% in the previous quarter. However, it is worth mentioning some important aspects. First, the sluggish growth was largely explained by the contraction in mining activity, as seen on the top left part. As a consequence of the strike in the biggest mine in Chile, Escondida, which lasted 42 days. Despite of shock, generate only a temporary impact in GDP. In the same chart, you can see the rest of economy has remained in positive territory. Second, we have seen better global conditions at both global prices and global activities are higher than expected. In this context, we think that first quarter '17 was the turning point of this negative cycle. In the labor market the unemployment rate remains low as seen on the top right chart. In March, it posted a slight increase to 6.4% from 6.2% in salaries were below the average of service in similar cycles. However, it is important to mention that job creation has been driven by self-employment rather than waged employment, reflecting that labor conditions are weaker. Jobs in both mining and construction sectors are falling.

Inflation remains in the lower part of the Central Bank range. In March, our inflation stood at 2.7%, while the CPI that excludes food and energy, remains at 2.2%. Both the stability in the Chilean peso and the higher output gap have explained the downward trend in inflation. You can see its evolution in the bottom left chart. Despite the weak growth, there are several leading indicators anticipating our recovery over the next quarter. For example, consumer goods imports has risen significantly as seen on the bottom right chart. Additionally, the positive return in the Chilean sub-market and the margin of recovery in private adaptation are also suggesting the possibility of better macroeconomic conditions in the near future.

Now I would like to discuss our macroeconomic baseline scenario. Please turn to Slide #4. We think that first quarter '17 marked the turning point in the negative cycle, since the good growth was led by temporary effects, like strike in Escondida, and as certain conditions are better, we expect an upward trend in the GDP growth through the year. Our 1.6% estimate for 2017 is consistent with another expansion of 2.2% between the second and the fourth quarter. We expect 2.8% for 2018 in line with the potential growth of Chile. On inflation, we expect the CPI to remain around the current levels, we think 2.8% at the end of this year. This forecast is a result of 2 opposite forces. Our positive contribution from the weaker currency and negative from the below trends growth.

Finally, we still want for a lower monetary policy rate. This year, the Central Bank has reduced the rate 3 times, totaling 75 basis points. In April meeting, the board maintained an easing bias, signaling the existence of more room for further cuts.

Now I would like to talk about our strategic focus and key initiatives. Please turn to Slide #7. As we have mentioned in previous conference calls, our strategy is based on 3 pillars. First, customers are the center of all of our decisions; second, focus on efficiency and productivity; and third, strengthen the relationship with society in our commitment to fuel economic development.

Regarding customers, we have defined 3 main lines of actions: continue developing these outstanding initiatives mainly through expanding our remote channels, advancing and implementation of our new CRM platform and strengthening our loyalty programs; all of which are critical to expanding our client base by improving customer experience and supporting a sustainable and profitable growth in the long run. We are convinced that banking is changing. Customers are going less to branches and are demanding better alternative contact channels. This has driven us to streamline our branch network, optimize how we offer services in our branches and invent a remote banking platform. In this context, we have seen significant progress over the last few years, which has translated into being recognized as the bank with the best digital banking presence. This and other initiatives have been critical to achieve our excellent results. Our net promoter score, which evaluates net recommendations reached 76% in March, leading the Chilean banking industry.

Additionally, the number of customers -- sorry the number of current account -- account holders grew 6.7% year-on-year, equivalent to approximately 50,000 new customers, which outreached the expansion per quarter by our main peers within the same period. We also continued making progress inventing our new CRM platform, which is built in-house, taking advantage of the new know-how we have accumulated using our current system. The new platform will be used by all commercial segments from corporate banking to Banco CrediChile, providing a complete online 360-degree view of our customers. This has been one of the main projects during the last year, and we are confident that it will allow us to offer a better and faster service to our customers.

In terms of our loyalty program, we have recently entered into a new alliance with British Airways, which further expands the benefit we provide customers when they use our credit cards. This agreement enhanced the existing travel alliance that we have with Delta, Iberia, and Sky Airlines. Through improvements in our loyalty program, we have been able to attract new customers, increase usage rates and revolving credit in our cards, while strengthening relationships with this alliance, with our selective and profitable growth attraction.

With reference to efficiency and productivity, we are focused on 2 main initiatives. First, business intelligence is by far the most important tool that has improved several key commercial activities. One that I would like to highlight is the exclusive development of personalized pricing platform in loan interest rates for repeat customers. Specifically, account managers are provided, in real-time, with a range of spreads for a particular customer, which takes into account the level of penetration and the customer's credit rate profile. This mechanism has several advantages, such as reducing lead times, fewer manual processes and a more accurate relationship between rate and return.

Our second group of initiative aims to optimize our sale model and branch network. In this context, we raised important synergies after merging our Promarket subsidiary into the bank operations, reducing the ship down by approximately 620 employees.

Additionally, our customers continue to use more our Visa platform, we have optimized our branch network by means of integrating several CrediChile offices our consumer sign-up edition into Banco de Chile branches, while others were merged with other CrediChile branches. This process was carried out taking the utmost care of affecting as minimally possible customer service. These initiatives, among many others, have permitted us to continue improving efficiency indicators as you can see in the start on this slide.

Finally, the bank has continued working several activities that strengthen its relationship with society. A critical aspect ensures the bank's sustainability in the long run. In this regard, our strategy considers the following areas: overcome adversity, supporting entrepreneurship and providing the development of access to quality education. More information of our activities can be found in our 2016 sustainability report, which is available in our website.

With reference to our main actions during first quarter, we actively contributed during the severe forest fire with volunteer workers, collection campaigns and drive donations. We also held a national entrepreneur summit with the purpose of training and promoting a group of selected entrepreneurs. Also, we recently released an inclusion policy for people with physical disabilities that defines guidelines of justice, respect and equality. By openly defining these concepts, we recognized inclusion as a way to contribute to the development of a country with more equal opportunities for everyone. Now I would like to pass the call to Pablo, who will go over the results in the banking industry in Banco de Chile.

Thank you, Rodrigo. Please turn to Slide #8. Despite the persistent weak economic growth, we ended the quarter strong with the bottom line of CLP140 billion equal to an ROAE of 19%. We achieved this by growing operating income 3% year-on-year, thanks to improved spreads and higher fee revenues that compensated lower noncustomer income. Also worth mentioning is the evolution of our risk portfolio where the parts of loan loss provision affected the reduction of the wholesale loans more than offset the slight deterioration we cautioned in previous calls and have finally begun to see industry-wide in the consumer loan book.

Finally, through strict cost control, operating expenses decreased year-on-year by 1%.

Before moving on, it's important to also highlight our capital base. Today, we have an outstanding Basel ratio of 13.9% above the average of the industry and our peers, as of February. More importantly, our Tier 1 ratio increased from 10.2% to -- in the first quarter of 2016 to 1.8% in this quarter. So this trend is in line of increasing regulatory requirements seen across the world that are expected to be implemented soon in Chile.

Please turn to the next slide, #9, on operating revenues. Operating income grew 3% year-on-year, thanks to strong customer revenue that rose almost 7% year-on-year and continued to show positive trends in spite of a weak economic environment. This result offsets lower customer income. Specifically, the growth in revenue was due to first, an increase in loans and deposits as you can see on the charts on the right. The loans grew a moderate but focalized 3.7% year-on-year and demand deposits were up 5.9% in the same period. Our efforts to grow profitably together with our proactive management of lending pricing derived an increase of 13 basis points year-on-year on spreads as shown on the bottom right.

Second, our rise in net fees from 12.7% year-on-year, chiefly due to transactional products as a result of cross-selling, a larger and growing customer base due to effective commercial strategies that prioritize an increase in penetration of high income individuals and the revision of our loyalty program resulted in a onetime recognition of lower commission expense.

Third, deposit effective exchange rates on hedges and lower cost of funds owed to reprice on short-term interest paid liabilities and to reprice quicker than assets. This is expected effect of the reduction of the overnight rate in the short-term. These positive effects were partially offset by lower revenues from trading activities due to a strategy of reducing interest rate sensitivity of the trading book in an environment of historically low interest rates and the effect of lower inflation. Our net interest income that when measured as the U.S. increased 0.47% during the quarter. This figure when annualized only almost reached 2%, well below the 3% annualized inflation reached in the first quarter of 2016.

In summary, it's important to mention that our proven business strategy and the progress in our key strategic product has permitted us to keep a sustainable and consistent growth in customer revenues. While this progress has slowed due to the lower dynamism of the economy, which has affected significantly the demands from most specifically -- mainly from our corporate customers, we managed to record another solid quarter of diversified revenue generation, particularly driven by customer income that allows us to be more resilient during economic cycles of low growth as we are currently facing.

Please turn to next slide 10, where there is a breakdown of the loan portfolio by products and segments. As you can see, total loan growth remains in the mid-single digit levels, increasing 3.7% year-on-year, in line with a slowdown in the economy. By product, this growth was led by mortgage and consumer loans growing 8.8% and 5.4%, respectively. Housing loans have been trending down for the last quarter for us and the industry due to the end of the tax benefit for real estate construction companies, which generated an above historical demand. We expect that the deceleration will marginally continue and growth rates should stabilize around 5% in real terms. Consumer loan growth has been concentrated in the middle and upper income segments and has been driven through strong commercial initiatives, such as the loan preassessment for over 200,000 potential customers, which was complemented by the personalized pricing model implemented in March that Rodrigo mentioned earlier. This has been made available in our platform and the cost or account managers have remote access to this information, and thus we deliver -- drive productivity gains.

In commercial loans, SMEs continue to drive growth with an increase of 11% year-on-year, while wholesale loans continued weak, decreasing 3% year-on-year in line with the low investment rates that has limited the financing needs and demands of companies. A strong growth in the SMEs has been due to a variety of factors, including: first, the room that is available to grow in this segment as it's characterized by low penetration levels; second, effective commercial strategies and trainings that have improved productivity of our account managers; third, the use of business intelligence to better target new customers; and fourth, on-site visits by account officers to improve relationships with customers.

Please turn to the next slide, #11, on loan loss provisions. The challenging environment Banco de Chile continued posting good levels of risk in the first quarter of 2017 with loan loss provisions of CLP63 billion and a loan loss provisions ratio of 1%, both figures compared to those posted last year. As you can see more clearly on the charts on the right, total loan loss provisions remained relatively flat due to the reduction in loans of our wholesale customers and the effect of nonrecurrent regulatory changes, which occurred in the first quarter of 2016. This was partially offset by the negative effect of the lower appreciation of the Chilean peso in the current quarter when compared to a year earlier, which reflects our allowances denominated in dollars.

Additionally, this figure was affected by a strategy of expanding in the retail segment together with a tempered deterioration and payment behavior mostly concentrated in consumer loans, aligned with the macroeconomic environment. Please turn to the next slide, #12, to take a closer look at the evolution of risks in our consumer loan book.

As you can see, on the top 3 charts, the banking industry has experienced greater level of risk in the consumer loan portfolio reflected in both an upward trend in delinquency ratios and larger charge-offs to average loan indicators. Banco de Chile follows this trend, but continues to outperform the industry by posting lower levels in nonperforming loans in spite of holding a much larger consumer finance segment as a percentage of total consumer loans as compared to other banks, described on the bottom left chart.

On the other hand, this mix results in higher charge-off ratios that we more than offset with better levels of interest yields than last year's, as described on the top and bottom right charts. This demonstrates a superior portfolio. Our interest yield on consumer loans net of risk is higher than our main competitors and they've been able to continue growing strong with only marginal effects on spreads. It's important to mention that our key proven capabilities in managing asset quality is the high involvement of the Board of Directors and upper management, as well as the important human and financial resources allocated to develop strong credit acceptance, collections and monetary practices at Banco de Chile.

Please turn to the next Slide #13 on operating expenses. As we mentioned earlier, and in previous calls, one of our strategic priorities continues to be to increase productivity and efficiency. In this regard, we have taken several measures of cost control with some of them already very included in this quarter, were total expenses decreased year-on-year by 1% giving us an efficiency ratio of nearly 45.5%, a noteworthy level when we consider that this has been achieved in an environment of low inflation recorded this period.

Specifically, personnel expenses decreased 4% year-on-year, mainly associated with the reduction in variable compensations due to lower headcount. This occurred due to the merging operations of our external sales force subsidiary Promarket into the bank and optimization of our branch network, as Rodrigo mentioned previously. Also during the quarter, we posted a reduction in severance indemnities due to a higher than normal level of these expenses in the first quarter of 2016. On other hand, administration expenses increased only 3% year-on-year, largely due to higher IT expenses. Specifically, these expenditures in IT reflected commitments to operational and customer experience excellence, and are in line with our strategic focus that aims to put the customer at the center of our decision, and continue improving operating efficiency through projects that are centered on increasing productivity and branches and back office activities, expanding online contact channels and digital banking services, redesigning core processes and automating back-office activities.

Going forward, we are confident that our permanent focus on cost control and ongoing commercial and operational initiatives will continue boosting productivity, resulting in better efficiency levels.

Please turn to the next slide, #15. Before we move on to questions, I would like to highlight a few key ideas that we mentioned in this call. First, there are good reasons to expect that the first quarter of 2017 was a turning point of the negative economic cycle in Chile. This should gradually translate into a more dynamic banking activity by the end of the year.

Second, digital banking platforms have moved from being novelties to necessities. In this regard, being leaders in digital innovation and transformation has become one of our priorities. We are optimizing our branch network and reinforcing all remote channels in order to promote -- provide the customer experience our clients demand and to improve overall productivity in the bank.

Third, we are focused on delivering responsible growth. This means that we aim to preserve profitability in the lending business. This has resulted in slower growth in wholesale lending due to weak demand as a consequence of the sluggish investment growth and the strong competition leading to aggressive pricing in some deals. This also means taking a cautious and prudent stance in retail lending and taking care of spreads as we have seen a slight increase in LTLs industry-wide.

Nevertheless, we are confident that our unique credit risk management approach, which is deeply present throughout the entire credit risk process, should continue to allow us to project and control risk well throughout the economic cycles we face. We believe that a strong strategy, competitive advantages and solid customer income-generating capacity will permit us to maintain a robust track record in net income and profitability. Now if you have any questions, we will be happy to answer them.

(Operator Instructions) Our first question comes from Carlos Macedo with Goldman Sachs.

Rodrigo, Pablo. A couple questions for you. First with the asset quality weakened as you mentioned, cost of risks went down though. I know that the fourth quarter had some anti-seasonal, anti-cyclical provisions there. What should we expect in terms of cost of risks going forward given that the last 4 or 5 quarters have been very volatile? With economy recovering, is the level that you delivered in the first quarter something that we should expect for the full year?

Second, in terms of loan growth, you did mention that we should see a strengthening on the economic cycle now. Does that mean that now through the end of the year, we should factor in accelerating growth in terms of lending or because of the, as you mentioned before, responsibility as you look out and try to deliver sustainable results, we should expect you to be a little more cautious before the election during the second half of the year and as we move into 2018?

Thanks. In terms of asset quality, for cost of risk that you mentioned, expected levels of around 1%. We expect and mainly this level, it should be -- it should slightly increase from here to the year-end basically in line with what we have been seeing in the economy a little bit weaker labor market, unemployment rate rising to levels around 17 -- 7%, sorry. In line with that, we think that the level of loan loss provisions should be more aligned with the levels that we saw last year for the full-year 2016, which was around the 1.2% range. In terms of lending and the economy, we're expecting the second half a little bit more dynamic. We've seen this first quarter and we've seen throughout last year, a period of low demand from our corporate customers, which we think should pick up. Consumer loans, we think will remain growing relatively at similar levels that we've seen today and estimates we expect something similar as well for us for at around the levels that you've seen this first quarter.

Just Pablo, just to make it clear, the acceleration would come from the corporate side there and for the most part, right?

We think there will be more dynamism from the corporate side because what we've seen so far is, since for a while now, is low business confidence, which we think the economy should begin to pick up from now to next year and that should be in demand from corporate loan growth from the wholesale side.

Our next question comes from Tito Labarta from Deutsche Bank.

A couple questions, I guess on your margins, I guess with inflation stabilizing, but the rate's coming down a little bit, remind me, I think you're liability-sensitive so that should help a little bit on the margins? Or if you can give some more color how you see margins evolving for the rest of the year?

And then second question on fees, pretty good year-over-year growth around 12% to 13%. Is that something sustainable, was that just in this quarter. How do you see fee income evolving for the year as well?

Thanks, Tito. In terms of net interest margins, we are expecting a similar NIM for the full year of 2017 as compared to 2016. The reason that we are saying this is that first inflation is expected to be relatively similar in our baseline economic scenario. Also lending spreads across all products, we believe will be relatively flat, but there shouldn't be much change in terms of spread and our strategy will continue to focus on lending in the most profitable segments, which is the upper income segment and SMEs which have a very attractive and similar spread to the consumer loan. Saying that, we expect that the impacts of reductions of overnight rate should be marginal, if anything seen this year. So we should see something similar of around 4.4% for net interest margin for this year. What could change is obviously, what happens with the evolution of the inflation, as you know.

In terms of fees, what you should expect for fees is growth that grows in line with inflation, customer growth and some cross-selling from transactional products. What we're seeing -- what we're expecting for this year is especially an improvement in fees due to ATMs income. We have positioned our ATMs in very optimal locations, and that's generating good fee-based income. We're also generating good improvements in mutual -- in the mutual fund business. But the levels that we saw in this first quarter versus last year are affected by the recognition of the loyalty program points. Basically what happened there is that after 36 months, the points expired, and this was the first time that we have realized this expiry of these points. So since the expired has reduced the commissions that we have to pay on those programs. So to answer your question more specifically, no, the 15% shouldn't remain, but we should expect a level in the high single digits.

(Operator Instructions) Our next question comes from Jason Mollin with Deutsche Bank.

Question on the outlook for efficiency and the investment in IT and digitalization. We saw some good gains in efficiency year-on-year in the quarter, and we saw that IT investment or costs actually increased and was one of the reasons it didn't improve more. What should we expect in terms of IT investment? How much -- what is the budget for these in 2017 and how does that compare to the past?

In terms of expense, well, as you know we have been very focused on cost control. So we have been designing and putting into practice a variety of plans that are aimed at reducing our cost base or improving efficiency and optimizing internal processes. And what you saw in this first quarter, part of the good -- the reduction in expenses was due to the merger of our former credit reevaluation subsidiary into the bank, which resulted in significant cost savings, which included a reduction in headcount and the revision of duplicated gross assets.

In terms of IT, what we have seen in this first quarter is a level of around 10% growth year-on-year and probably that will continue at higher growth and that type of expense should continue because we have a lot of projects and initiatives that are focused on improving a variety of platforms, including a new CRM project, which shouldn't only improve service quality, it should also improve customer loyalty and productivity in the bank. We are also implementing more business intelligence tools. We're launching a new company's online banking website, so all these expenses obviously will pass through IT, while other expenses we have been very focused on controlling.

And expenses for this year, the investment is $40 million in IT.

Our next question comes from Alonso Garcia with Credit Suisse.

Most of my questions have been answered. I just want to touch base on the competitive landscape. Could you please share some color in this regard in light of mortgage loan book growth environment across the different segments?

What we have seen in this first quarter in the industry is slow demand from the corporate segment. The corporate segment hasn't been growing much, but we expect that in line with improvements in the economy and business confidence that's expected in the second half of this year, that should drive a little bit of the loan growth for us and the industry and commercial loans.

In commercial loans, we're expecting a level of around 5% in total for the industry in nominal terms where that will be led by a 6% increase in SME lending and around 5% for wholesale. And you have to take into consideration, SMEs represents very little in this bigger -- in Chile, it is not a segment that has a strong penetration. We think that this will continue to be the trend that SMEs will continue growing more strongly than in corporate.

In terms of mortgage loans, what we are expecting is a level of around 8% growth. In mortgage lending, what we have been doing since mid-2015 is increasing the spreads, very focused on improving our risk-return relationship and some other banks have been more focused on -- have been -- have been lower spreads. So that affected a little bit our market share in some quarters. But we are comfortable with that because we are comfortable with the market share in that segment. So there is more aggressive pricing in mortgage loans today. And that's been the trend in the last year, 1.5 years.

In consumer loans, what we have seen is growth -- what we're expecting is growth of around 6% -- around 6% for the year in total. We are expecting, if we break this down between the lower and upper income segment to consumer loans, we are expecting the lower income to be flat growth, similar to what you have seen in prior periods while the middle and upper income segments will continue growing around the 10% range.

And in the commercial and consumer segment, do you expect to grow in line with this system that you mentioned, 5% in commercial and 6% in consumer?

We are looking -- we are very focused on - in growing in the middle, upper income segments and SMEs. So probably what we'll see is better growth than the systems for consumer loans in the middle, upper income segments, and also picking up some share in SMEs. If we look at it by the commercial loans as a whole, it should be relatively flat, but we should pick up a little bit of market share in SME lending.

(Operator Instructions) Our next question comes from Sebastian Gallego.

Thanks for the presentation. Just 2 questions, can you provide a timeline of the implementation regarding the CRM program? And the second question comes from the effect that we saw in second quarter 2016 for roughly CLP50 billion on after the sale of AFS Securities? Should we see that also in the second quarter 2017? Or will it be just a nonrecurring event?

The timeline for the implementation of the CRM is a project of 3 years; we are through the first year of the project. It's a project that's being phased in bit by bit. Today we have a very good CRM system. It's a world-class CRM system. But we are currently -- we've decided to build our own in-house CRM system, which will be more customized to suit our needs and take into consideration what we have learned from this world-class system, and implement a more productive and efficient system, entirely original. Our current system, world-class system, we believe it is very high quality. So we just moved to a little bit more customized and more productive CRM system. But basically a 3-year project.

And in terms of CLP50 billion that was recognized in treasury, that was something that was recognized -- it was always recognized in equity accounts. They were available for sale securities and those were sold to as a onetime event and you shouldn't -- that shouldn't be -- that's a onetime event that won't be recognized again in the second half or the second quarter.

Just a follow-up on the CRM implementation, is someone else helping you out with the program? Or is it just Banco de Chile?

It's an internal in-house program with -- in Chile there is lot of know-how, people with a lot of know-how that can implement this, and this is being done in-house here in Chile and not with a third party.

Our next question comes from [Neha Agarwala].

I have two questions. The first on the asset quality side. Is there any particular sector of the economy that you are watching carefully or that you are probably concerned about? And my second question is on the tax rate. Could you please go through, again, the assumption for the tax rate for this year, and the next?

In terms of asset quality, there is no particular segment that we are very concerned about, but what we have been taking a closer look at, obviously is what we've mentioned is in the consumer loan book, where we have seen a deterioration and a slight deterioration, which we think should continue and which we have been mentioning since last year. This is something that should occur. We have been expecting an increase in employment levels and the quality of employment is worse than it was before. So it's something that's expected. That's the main thing I could mention about asset quality. And in terms of the tax rate, Daniel Galarce will respond to that question.

Yes. In terms of the tax rate, our effective tax rate for the first quarter was 16.9% for the full year, probably we will have something between 15% and 16%. You have to deduct the effect of inflation on the stockholders' equity, and also the effect of the payment to Central Bank every year. So for this year, probably at the end of the year, we should have something like 16% around it.

And any outlook on 2018?

I'm sorry, (inaudible). For 2018, this coming year corporate tax rate will increase to 27%. Accordingly, once again, you should deduct the effect of SAOS or the Central Bank, and also at least 4 percentage point of inflation on the shareholders' equity. So basically more or less, you should have something like 17%, around that.

This concludes the question-and-answer session. And at this time, I would like to turn the floor back to Banco de Chile for any closing remarks.

Thank you for listening to our call on the first quarter results. We look forward to speaking with you on our second quarter 2017 results. And goodbye.

Thank you. This concludes today's presentation. You may disconnect your line at this time, and have a nice day.