Annual General Shareholders Meeting Gabriel Moura Chief Executive - - PowerPoint PPT Presentation

SLIDE 1

1

Annual General Shareholders Meeting

Gabriel Moura

Chief Executive Officer March March 18 18th

th,

, 202 2020

SLIDE 2

2

Strategic initiatives

SLIDE 3

3

Individuals Individuals NPS NPS 1

Dec-19 vs. Dec-18

15 pp

SM SME NPS NPS 1

Dec-19 vs. Dec-18

24 pp

Comp Companies anies NPS NPS 1

Dec-19 vs. Dec-18

20 pp

Digita Digital l Tra Trans nsfo format rmation ion People People

Strategic initiatives

Customer Customer centricity centricity

Org Organizat anizational ional Climat Climate e (hable francamente) 9 p.p. 9 p.p.

• f 2019 employees satisfaction

Dress Code Flexibility for Employees

Go As I Go As I Am Am Lid Lidera era

more than 14,000

14,000 tra training ining hours hours in our

program for leaders

Escuela Escuela Itaú Itaú

+400,000 +400,000 tra training ining hours hours for employees

(regulatory and languages workshops, Crece program, Diploma at Universidad Católica for 60 managers, among others)

Recognized as the 9th

th best

best com company pany in in Chile Chile in in Att Attractio raction n and Retenti and Retention of

• n of Talent

Talent by Merco

2 Digital

Branches

Digital Approach Multi-Channel First Call Resolution Extended Hours Account Load

Digital Branch

4,500

Jan-19 Jan-20

198

1 – Servitest – Ipsos Survey: 2 – Considers the number of current accounts opened in each month; 3 – Adjusted non-interest expenses annual growth (%) for Itaú Corpbanca in Chile and the Chilean Financial System.

Individual account holders

+ openings

• closures

2018 2019

100 157 69 53

Digital clients

1.0x 1.0x 2.0x 2.0x 2

Dec-18 Dec-19

(base 100)

Evolution of Non-interest expenses 3

Effi Efficiency ciency

Merger

Itaú Industry

• 1,2

0,8 2,8 4,8 6,8 8,8 10,8

• 1,2

0,8 2,8 4,8 6,8 8,8 10,8 12,8

2015 2016 2017 2018 2019

8.3 5.3

• 0.9

6.3

4.6 4.6 p.p.

p.p. bel below

• w sector

sector average average

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Digital transformation

% of transactions through digital channels Retail digital clients 1 Individuals Individuals 2 Consumer loans Credit limits Credit card advance

82 82% 85 85% 55 55%

4Q19

83 83% 68 68% 50 50%

4Q18

Time deposits

77 77% 74 74%

• 1 p.p.

+17 p.p. +5 p.p. +3 p.p.

90 90% +1 +1%

ADOPTION

IN 12 MONTHS

78 78% +17 +17%

Small Small Co Compani mpanies es 3

1 – December, 2019; 2 – IS, PB digitizable clients; 3 – Very small & small companies and Middle companies

Co Colla llabo borative rative worki working ng mod model el

• Early and continuous delivery
• Focus on business value

Cus Custo tomer cen mer centricit tricity

• Priorization and solutions

based on customer needs

Branch Branch transformatio transformation

• Biometric solutions
• Virtual host

Cybersecu Cybersecurity rity

• Biometric behavior
• Digital cyber defense

Robo Robotic tic effici efficiency ency

• Client onboarding
• Mortgages
• Operations

Analyti Analytics cs

• AI predictive models
• Geolocalization
• Behavioral clusterization

Strategic focus Mutual Funds

56 56% 50 50% +6 p.p.

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5

Responsible banking

Translating strategy into action

1st Financial sector

initiative

The on

• nly

ly fina financi ncial al inst instit itutio ution n in in Chil Chile e and and Colo Colomb mbia ia to be part of the Institutional Investor’s list of 39 Latin American Midcap 'Most Honored Companies'

We be We believ lieve e tha that people t people have have the the pow power er to to tran transform sform the the world world, , and and tha that t a a ban bank c k can an promote promote this tra this transformati nsformation

• n

We increased our DJSI scores in 2019 edition, ranking for the first time for the MILA MILA Pacifi Pacific c Alli Alliance Index ance Index and for the fourth consecutive year remaining part

• f the Chile

Chile Index Index

Sust Sustaina ainabil bility ity Performance Performance

Itaú Asset Management awarded as the 'ALA 'ALAS20 S20 Institutio Institution' n' for being recognized as a leader in: Responsible Investments, Corporate Governance and Sustainability Research

Respon Responsible sible Investmen Investment

Commitments Achievements Main partners In 2019 we launched our

• ur first in

first integrated tegrated and and ver verified ified Annual Annual Report.

• Report. The

quality of the information delivered to the market was recognized by the Reporta Ranking who scored as 23 points higher than the 2018 survey

Transp Transparency rency in in Commu Communicati nication

• n

Voluntary commitment between the financial sector, the government and regulators, who have defined general principles regarding the management of risks and opportunities associated with clim climate ate change change in in deci decision sion-making making

Climate Climate Change Change

17 points

above sector average

ALAS20 Institution

23 points

above 2018 score

Top 3 Best Latin

America Executive Team Goals

Itaú Asset Management

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About About the 4 the 4th

th quarter

quarter of 2019

• f 2019

SLIDE 7

7

Highlights

4Q19

Recurring RoTE NPL 90+ days Loans Recur Recurring ring net income Cost of credit Non-Interest expenses Consolidated

Ch$17.9 bn

Chile

Ch$21.7 bn

• 58

58.0 .0 %

• 46.0

46.0 %

Consolidated

3.4%

Chile

5.4%

108.5 108.5 % 169.0 169.0 % 11.5 11.5 % 5.5 5.5 %

Margin with clients Consolidated

Ch$220.3 bn

Chile

Ch$161.3 bn

9.2 9.2 % 12. 12.0 0 %

Commission and fees Consolidated

Ch$50.6 bn

Chile

Ch$40.0 bn

9.1 9.1 % 10.1 10.1 %

4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19

Consolidated

2.8%

Chile

2.5%

4Q18 1Q19 2Q19 3Q19 4Q19

Consolidated

Ch$23.2 bn

4Q18

Chile

Ch$18.3 bn

1Q19 2Q19 3Q19 4Q19

2.9 2.9 % 2.5 2.5 %

36. 36.0 29.2 29.2 52. 52.8 40. 40.2 21.7 21.7 9.1 9.1 7.3 7.3 13. 13.0 9.6 9.6 5.4 5.4 1.8 1.8 1.9 1.9 1.9 1.9 1.8 1.8 2.5 2.5 157. 157.4 140. 140.8 146. 146.5 144. 144.0 161. 161.3 40. 40.7 39. 39.2 41. 41.1 36. 36.3 40. 40.0 50 50.7 .7 36. 36.6 41. 41.9 40. 40.9 110. 110.1 113. 113.4 111. 111.2 112.5 112.5 110. 110.8 116. 116.9 16.8 16.8 16.9 16.9 17.3 17.3 17.8 17.8 18.3 18.3 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19 4Q19 vs. 3Q19

• 4.7

4.7 p.p.

• 4.2

4.2 p.p. 0.7 0.7 p.p. 0.7 0.7 p.p.

Chile

Ch$110 bn

Consolidated

Ch$134 bn

Consolidated

Ch$174.6 bn

Chile

Ch$116.9 bn

4Q19 vs. 3Q19

SLIDE 8

8

About 2019 About 2019

SLIDE 9

9

2019

higher v higher volume of credit

• lume of credit in

in Chile Chile (+ 8.7 (+ 8.7%) %) and and better better mix mix

• f
• f products

products

• ffset the decrease in weighted

average spread, boosting the financial margin with clients in Chile

Cost of

• st of credit increased

credit increased in Chile in Chile

69.0%

Non Non-interest interest expenses expenses in in Chile Chile grew grew below inflation below inflation

1.9%

mainly driven by corporate credit events and regulatory and internal credit risk models implementation

53.0% 53.0% Efficiency ratio Efficiency ratio improved improved b by y 110 110 bp bp

9

About our year

Recurring

Net Net

5.9%

Ch$155.0 billion Ch$143.9 billion

Cons Consoli

• lidated

dated Chil Chile

26. 26.1% 1% 27.4% 27.4% 3.4 p.p. 3.4 p.p.

Cons Consoli

• lidated

dated Chil Chile

4.1 p.p. 4.1 p.p. 7.6 % 8.9 %

Income Income

Recurring

Retur Return n on

• n

Tangible Tangible

(yoy) (yoy) (yoy)

Equity Equity (RoTE RoTE)

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10 10

Macroeconomic outlook and Guidance

2019

GDP 2 Loan Growth 3 Inflation 4 Interest Rate 4 GDP 2 Loan Growth 5 Inflation 4 Interest Rate 4

3.2% 3.2% 8 8 – 10% 10% 2.7% 2.7% 3.50% 3.50% 3.3% 3.3% 8 8 – 10% 10% 3.4% 3.4% 4.75% 4.75% 1.2% 1.2% 9.7% 9.7% 3.0% 3.0% 1.75% 1.75% 3.3% 3.3% 8.8% 8.8% 3.8% 3.8% 4.25% 4.25% Fore Forecast cast 1 Actual Actual

Loan Growth Increase retail in Loan Mix 6 Cost of Credit Risk 7 Expenses in line with inflation 8 Results from Colombia 9

8.7% 8.7%

8.0% 10.0%

+25 +25 bp bp 1.3% 1.3%

0.7% 0.8%

1.9% 1.9%

2.7% 1 ‒ Itaú Corpbanca initial forecast for 2019 on 03/01/2019, updated projections on 11/04/2019; 2 ‒ GDP 2019 projected; 3 ‒ Pro forma figures from 2016 to 2018 adjusted for the inclusion of loans from CMR, Walmart and Santander Consumer credit portfolios; 4 ‒ End of period; 5 ‒ Loan growth for the twelve-month period ended November 31, 2019; 6 – Retail loans refers to mortgage and consumer loan; 7 – Net provision for credit & counterparty risks; 8 – Adjusted Non-Interest Expenses; 9 – Managerial Net Income Attributable to Shareholders; evolution in Colombian Peso. Dic Dic-18 18 33.3% 33.3% 33.5% 33.5% Dic Dic-19 19

Macroeconomic Guidance

Actual Actual Expecte Expected

Continued recovery in profitability

11.2 11.2 x

SLIDE 11

11 11

2019

Loan growth

Chile Chile

8.7 % 8.7 %

8.0% 10.0% Guidance: Loan growth

Actual

1 – Ex Student loans portfolio

8,7%

9,7%

Total Total L Loans

• ans

9,0%

10,3%

Comm Commercial ercial1

9,3%

11,2%

Mo Mortgag rtgage

9,9%

5,5%

Consumer Consumer

1.8x Market Reducing the gap Convergence Convergence

Financial System Itaú Corpbanca

SLIDE 12

12 12

Commercial 67.5% Mortgage 22.8% Consumer

9.7%

2019

Portfolio mix

Chile Chile

25 25 bp bp

33.3% 33.5% Guidance: Increase Retail in Loan Mix

Realized

Portfolio Portfolio Mix Mix (%)

(%)

Retail: Retail: 32.5 32.5% Retail: Retail: 33.6% 33.6%

Market Market Share Share (2019)

(2019)

7.2% 7.2%

Co Comm mmercia ercial Mor Mortgage tgage Co Consumer nsumer

7.9% 7.9% 12.0% 12.0%

To Total tal Loans Loans

10.1% 10.1%

29 bp 29 bp

14 14 bp bp 21 21 bp bp 10 10 bp bp

Share Share

 12 12- months months

2017 2017

Dic Dic-18 18 Dic Dic-19 19

2019 2019

Commercial 66,5% Mortgage 23,0% Consumer 10,5%

2019 vs. 2018

Con Consu sumer mer gr growth

• wth

1.8x Market 1.8x Market

107 107 bp bp

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Capital structure

2019

CET 1

New LGB (Dec. 2024)

SIFI (est.) CCB AT1 Total Capital Tier II CET 1 Tier I

9.0%

• 1.8%
• 0.2%

7.0%

Regulatory Capital Ratio (Dec. 19) Other Intangible Assets / Net Deferred Taxes Net effect

• f changes in RWA

Estimated Fully Loaded BIS III Capital

4.1% 13.1% 4.5% 11.5% 1.5% 1.0% 2.5% 8.0% 9.5% 2.0% 3.5% 10.5%

• 0.7%

Max use of Tier II

Regulatory Capital Ratio (Dec. 2019)

Tier II Tier I

SLIDE 14

14 14

2016 2017 2018 2019

• Change of strategy for the

technological integration

• Alignment to new risk management

framework and other policies

• Balance sheet and liquidity

strengthening

• Acquisition of assets and liabilities
• f Itaú BBA Colombia
• Introduction of Itaú Brand in the

Colombian retail Market

• Beginning of technological

migration

• Completion of technological

integration

• Initial roll out of digital initiatives
• Completion of retail migration and

client segmentation

• Focus on increasing and sustainable

results

• Strengthening our culture

throughout the organization

• Consolidation of our value offer for

retail banking

• Advancing with digital agenda
• Growth in SME segment
• Continued and sustainable rebound

in results

• Footprint optimization

Itaú Itaú Co Corpbanca rpbanca Co Colombi lombia a con continues tinues implem implemen enting ing its its strategy strategy focus focusing ing on a

• n a sustai

sustainabl able e performanc performance e in in the the lon long g term term

Timeline milestones

SLIDE 15

15 15

branches closed in Colombia in 2019

3.33 .33 thousand thousand

employe employees es

in 2019

Highlights

2019

10.3 10.3 bn 0.4% 0.4% 20 20.8 .8 tn 30.4 30.4 tn

20 2019 19 20 2018 18

11 115.4 5.4 bn 4.6% 4.6% 20.2 20.2 tn 27.9 27.9 tn

Net Income RoTE Loan Portfolio Total Assets

(443.1) 443.1) (451.5) (451.5)

+11.2 +11.2 x +4.2 +4.2 p.p.

p.p.

• 2.7

2.7%

• 8.3

8.3%

1.9% 1.9%

3.49 3.49

3.3 3.33

3.6 .64

Dec-18 Dec-19 Dec-17

About 2019

127 127

branche ranches s

in Colombia in 2019

34 34 (

( 21%) 21%)

Col Colomb

• mbia

ia Actual

Guidance: Continued recovery in profitability

11.2 11.2 x

• 121,3

10,3 115,4

2017 2018 2019

In billion COP

Recurrent Net Income Evolution

In billion COP RoTE Loans

Loan Portfolio and RoTE Evolution

In COP

SLIDE 16

16 16

About 2020 About 2020

SLIDE 17

17 17

Macroeconomic outlook

2020

2017 2017 2018 2018 2019 2019 2020 2020 2017 2017 2018 2018 2019 2019 2020 2020

GDP 2 Loan Growth 1 Inflation 3 Interest Rate 3

1 ‒ Pro forma figures from 2017 to 2018 adjusted for the inclusion of loans from CMR, Walmart and Santander Consumer credit portfolios; 2 ‒ GDP 2019 and 2020 projected; 3 ‒ End of period. Source: Itaú Corpbanca’s estimates.

4,8% 10,3% 9,7% 4-6% 2,3% 2,6% 3,0% 3,3% 2,50% 2,75% 1,75% 1,25% 1,3% 4,0% 1,2% 1,2% 6,1% 5,8% 8,9% 8-10% 4,75% 4,25% 4,25% 4,25% 4,1% 3,2% 3,8% 3,3% 1,4% 2,6% 3,3% 3,1%

SLIDE 18

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Guidance

2020

Expected

Loan Growth Loan Mix 1 Cost of credit Risk 2 Adjusted Non-Interest Expenses 3 Results from Colombia 4

6.0% 6.0% 4.0% .0%

Cont Continu inued ed incr increas easing ing ret retail ail in l in loa

• an

n mi mix

1.2% 1.2% 1.0% 1.0%

Continu Continued ed recovery in recovery in prof profitab itabil ility ity

1 – Retail loans refers to mortgage and consumer loan; 2 – Net provision for credit & counterparty risks; 3 – Net of labor agreement costs; 4 – Managerial Net Income Attributable to Shareholders.

4. 4.5% 3.5% 3.5%

SLIDE 19

19 19

Key strategic drivers

2020

Client centricity Digital transformation People management Growth Colombia Capital Efficiency

• Culture of innovation and transformation
• Efficiency and improvement of user experience

and customer satisfaction

• Seamless integration from back-office to front-
• ffice
• Expand our presence and client base in all business

segments

• Special focus on growing our Retail Bank
• Further increase transactionality and relationship

within our client base

• Efficiently managing capital allocation through

adequate cost of equity

• Value creation and RAROC metrics and tools as a driver

throughout the organization

• Continuously increase the efficiency of our operations
• Drill down of the full cost allocation model to product

level

• Continued focus and discipline in identifying cost

saving opportunities throughout the institution

• Strengthening our culture throughout the
• rganization
• To enhance our incentive models and our assessment

tools

• To consider the new dynamics of cooperative working
• Segmentation model with well defined identity

and value proposition

• Development of products and a “service culture”

focused on client satisfaction and long-term relationships

• Continued and sustainable rebound in results
• Resume expansion in business volumes
• Advance with the implementation of retail and

wholesale strategies

SLIDE 20

20 20

Resultados

• This presentation is not an offer for sale of securities. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not

be treated as giving investment advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this material are subject to change without notice and neither Itaú Corpbanca (the “Bank”) nor any other person is under obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is subject to qualifications and assumptions, and neither the Bank nor any agent can give any representations as to the accuracy thereof. The Bank and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material

• Certain statements in this presentation may be considered forward-looking statements. Forward-looking information is often, but not always, identified by the use of words such as “anticipate,” “believe,” “expect,”

“plan,” “intend,” “forecast,” “target,” “project,” “may,” “will,” “should,” “could,” “estimate,” “predict” or similar words suggesting future outcomes or language suggesting an outlook. These forward-looking statements include, but are not limited to, statements regarding expected benefits and synergies from the merger of Banco Itaú Chile with and into CorpBanca, the integration process of both banks, anticipated future financial and operating performance and results, including estimates for growth, as well as risks and benefits of changes in the laws of the countries we operate

• These statements are based on the current expectations of the Bank’s management. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in

this communication. For example, (1) problems that may arise in successfully integrating the businesses of Banco Itaú Chile and CorpBanca, which may result in the combined company not operating as effectively and efficiently as expected; (2) the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies; (3) the credit ratings of the combined company or its subsidiaries may be different from what the Bank or its controlling shareholders expect; (4) the industry may be subject to future regulatory or legislative actions that could adversely affect the Bank; and (5) the Bank may be adversely affected by other economic, business, and/or competitive factors

• Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to the Bank’s management. Although management considers these

assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved

• We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations,

estimates and intentions expressed in such forward-looking statements. More information on potential factors that could affect Itaú CorpBanca’s financial results is included from time to time in the “Risk Factors” section of Itaú CorpBanca’s Annual Report on Form 20-F for the fiscal year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (the “SEC”). Furthermore, any forward-looking statement contained in this presentation speaks only as of the date hereof and Itaú CorpBanca does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result

• f new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement
• This presentation may not be reproduced in any manner whatsoever. Any reproduction of this document in whole or in part is unauthorized. Failure to comply with this directive may result in a violation of the U.S.

Securities Act of 1933, as amended, or the applicable laws of other jurisdiction

• The information contained herein should not be relied upon by any person. Furthermore, you should consult with own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that

you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material

• The Bank is an issuer in Chile of securities registered and regulated by the Financial Market Commission, or “CMF”. Shares of our common stock are traded on the Bolsa de Comercio de Santiago—Bolsa de Valores, or the

Santiago Stock Exchange and the Bolsa Electrónica de Chile— Bolsa de Valores, or Electronic Stock Exchange, which we jointly refer to as the “Chilean Stock Exchanges,” under the symbol “ITAUCORP.” The Bank’s American Depositary Shares are traded on the New York Stock Exchange under the symbol “ITCB.” Accordingly, we are currently required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the CMF and provide copies of such reports and notices to the Chilean Stock Exchanges and the SEC. All such reports are available at www.cmf.cl, www.sec.gov and ir.itau.cl.

Disclaimers

SLIDE 21

21 21

Annual General Shareholders Meeting

Gabriel Moura

Chief Executive Officer March March 18 18th

th,

, 202 2020