Itaú Corpbanca
Institutional Investors Presentation
May 2019
Institutional Investors Presentation Ita Corpbanca May 2019 - - PowerPoint PPT Presentation
Institutional Investors Presentation Ita Corpbanca May 2019 Disclaimers 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
May 2019
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
“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
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
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
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 of new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement
U.S. Securities Act of 1933, as amended, or the applicable laws of other jurisdiction
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
de Santiago—Bolsa de Valores, or the Santiago Stock Exchange, the Bolsa Electrónica de Chile— Bolsa de Valores, or Electronic Stock Exchange, and the Bolsa de Corredores—Bolsa de Valores, or the Valparaiso 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 SBIF and the Comisión para el Mercado Financiero, the Chilean Commission for the Financial Market, or “CMF,” and provide copies of such reports and notices to the Chilean Stock Exchanges and the SEC. All such reports are available at www.sbif.cl, www.cmf.cl, www.sec.gov and ir.itau.cl. 2
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
GDP Growth (%) Interest Rates (EOP) - % Inflation (CPI) - %
Source: Central Bank of Chile and Central Bank of Colombia. Itaú CorpBanca’s projections
Exchange rates – CLP/USD & CLP/COP
5.8 6.1 5.3 4.0 1.8 … 1.3 1.5 4.0 3.2 4.0 4.0 6.6 3.9 4.6 4.7 3.0 2.0 1.8 2.7 3.3 3.6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia 3.0 4.4 1.5 3.0 4.6 4.4 2.7 2.3 2.6 2.6 2.9 3.2 3.7 2.4 1.9 3.7 6.8 5.8 4.1 3.2 3.0 3.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia
4
3.3 5.3 5.0 4.5 3.0 3.5 3.5 2.5 2.8 3.3 4.0 3.0 4.8 4.3 3.3 4.5 5.8 7.5 4.8 4.3 4.3 4.5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia
0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27 580 600 620 640 660 680 700 720 740
CLP/USD CLP/COP
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
6
To be the leading bank in sustainable performance and customer satisfaction
7
We seek to create a culture based on seven attitudes that define our identity and identify us in the way we do business. Each one of them represents the core of what we focus on as institution.
We are people providing service to people, with passion and excellence. We work with the client and for the client –because they are the main reason behind why we do what we do.
Generating sustainable results is in our DNA. The continuous challenge of seeking leadership in performance has brought us to where we are –and will continue guiding our company towards our objectives.
Everything we do is carried out by people. Talented people who enjoy working in a collaborative atmosphere, based on meritocracy and high performance.
We encourage a challenging work environment, which is open to questioning and constructive discussion. For us, the hierarchy which counts is the hierarchy of the best idea.
We believe that simplicity is the best path to efficiency. That’s why we strive not to mistake depth for complexity, and simplicity for simplism.
We always think like business owners, leading by example and putting collective objectives before personal ambition.
We do what is right, without using shortcuts or devious ways to do business. We exercise leadership in a transparent and responsible way, fully committed to society and the best governance and management practices.
8
Merger Transition Construction
management
management framework and other policies
strenghtening
sustainable results
integration and advancing with digital agenda
throughout the organization
segmentation in Chile
Colombian retail Market
Consolidation
management model (commercial growth; people management; risk management)
transformation
experience, listening and engaging customers
9
We are key part of Itaú Unibanco’s Internationalization Strategy
Regional footprint & main indicators 1 2
10.1% 3 4.7% 4
Market Share
US$ 24.8 bn US$ 7.0 bn
Loans 1
US$ 31.8 bn
5,557 5 3,485 6
Headcount 1
9,042 202 161
Branches 1
363
US$ 33.8 bn US$ 9.6 bn
Assets 1
US$ 43.4 bn US$ 44 mn US$ 6 mn
Recurring Net Income 1Q19
US$ 50 mn
7.5% 4.3%
Recurring RoTAE 1Q19 7
6.9%
1 Consolidated information as of March 31, 2019; 2 Figures were converted at an exchange rate of 680.44 CLP/USD; 3 Consolidated information as of February 28, 2019; 4 Consolidated information as of January 31, 2019; 5 Includes headcount of our New York
branch and since 1Q’18 also from our RepOffices in Lima and Madrid; 6 Includes headcount of Itaú (Panamá); 7 Tangible Equity: Shareholders equity net of goodwill, intangibles from business combination and related deferred tax liabilities. Sources: Itaú CorpBanca, SBIF and SFC.
10
(US$ Bn) US$ Bn US$ Bn
4 Caixa
Santander Bradesco3 9 Citibank Banco do Brasil 8 BBVA Scotiabank7 1 2 3 4 5 6 7 8 9 15 BCI Grupo Aval
Santander Scotiabank7 Banco del Estado de Chile 1 2 3 5 6 7 Banco de Chile Bancolombia Itaú Corpbanca4 9 8
Itaú CorpBanca represents 23%
loan portfolio8
Itaú Unibanco2 10 Itaú Corpbanca4 Itaú LatAm6
1 Data as of September 30, 2018. Includes Brasil, México, Colombia, Chile, Argentina, Paraguay, Perú and Uruguay; 2 Includes Brasil, México, Argentina, Perú, Uruguay, Paraguay, Chile y Colombia; 3 In September 30, 2016 Bradesco begins to consolidate HSBC Brasil in its publication; 4 Includes Chile y Colombia (Itaú Corpbanca Chile with ~US$35MMM in assets); 5 Data as of September 30, 2018. Includes Colombia, Chile, Argentina, Paraguay, Perú and Uruguay; 6 Includes Colombia, Chile, Argentina, Paraguay, Perú and Uruguay; 7 As of September 30, 2018 Scotiabank figures consolidates with BBVA Chile after the latter merged with and into Scotiabank Chile; 8– Considering the consolidated loan portfolios of Itaú Unibanco and Itaú Corpbanca reported in their respective 1Q’19 MD&As and a R$ 3.8879 / US$ and a Ch$ 680.44 / US$ foreign exchange rates as of 31.03.2019; 9– Since October 16, 2018, Itaú Unibanco holds a 38.14% equity stake in Itaú Corpbanca but as the controlling shareholder, fully consolidates Itaú Corpbanca’s Financial Statements. Source: Central Banks, local regulators, companies filings, Itaú Corpbanca.
Banks by Assets in Latin America1 Banks by Assets in South America (ex-Brazil)5 Loan portfolio as of Mar.19
Itaú Corpbanca is currently the 5th largest private bank in Chile and we contribute to position Itaú LatAm as the 10th and 6th largest bank in terms of assets within South America (ex-Brazil)
363 398 316 102 341 76 319 161 60 45 53 54 57 53 45 76 78 60 55 50
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US$ 4.5 Bn Market Cap. (Mar. 31, 2019)
Average daily traded volumes 12 months ended March 31, 2019
Source: Sell-side reports.
1 – For Itaú CorpBanca and BCI consider shareholders equity net of goodwill and intangibles from business combination.
Buy: 2 Hold: 5 Sell: 0
Sell-side rating:
12
% Total share capital as of April 30, 2019
3.35 0.26 3.61
Santiago NY Total
Price-to-Book1
Board Chile
Wholesale
Manuel Olivares
Treasury Marketing & Products IT Human Resources Retail CRO Legal
Álvaro Pimentel
Treasury Derek Sassoon CRO Juan Ignacio Castro
Frederico Quaggio IT Bernardo Alba Legal & General Secretary Dolly Murcia Human Resources María Lucía Ospina Wholesale Jorge Villa Communications & Institutional Relations Carolina Velasco Operations Liliana Suárez Retail Hernando Osorio
Chairman
Manuel Olivares
Matrix reporting to CEO Colombia and functional reporting to ITCB Functional reporting to CEO Colombia and matrix reporting to ITCB for coordination of specific themes
Board Colombia
Board Colombia
Roberto Brigard Holguín Luis Fernando Martínez Lema Carmiña Ferro Iriarte Rafael Pardo Soto Juan Echeverría González Gabriel Moura Cristián Toro Mónica Aparicio Smith Chairman
Manuel Olivares
Colombia Pedro Silva Mauricio Baeza Luciana Hildebrandi Álvaro Pimentel Christian Tauber Julián Acuña Marcela Jiménez Cristián Toro Luis Rodrigues
Itaú CorpBanca Colombia CEO Itaú Corpbanca CEO
Board Chile1 2
Chairman
Jorge Andrés Saieh Guzmán
Ricardo Villela Marino Caio Ibrahim David Milton Maluhy Filho Andrés Bucher Cepeda Pedro Samhan Escandar Fernando Concha Ureta Jorge Selume Zaror Fernando Aguad Dagach Gustavo Arriagada Morales Bernard Pasquier
1 Itaú Unibanco and CorpGroup appoint the majority of the members of the board of directors; 2 Pursuant to the Shareholders Agreement, the Directors appointed by Itaú Unibanco and CorpGroup shall vote together as a single block according to Itaú Unibanco’s recommendation.
Audit Committee CAE Emerson Bastián Franchise, Products & Digital Marcos Aulicino Andrade CFO Gabriel Moura CFO Juan Pablo Michelsen Operations Jorge Novis
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Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
1 Yearly average gross loans; 2 Loan interests by segments; Source: SBIF; Itaú Corpbanca; Team Analysis.
Loans breakdown by segment¹
LTM Mar 2019, Ch$ Bn
13.9 7.0 13.8 6.7 Total 5.8 5.8 5.6 5.9
Itaú Corpbanca Average Top 3
Interest Rates
27,222
Consumer Commercial
16,038 21,931
Mortgage
29,861
∆ 25 bp 39 bp por mix
Peer-A Peer-B Peer-D
Current rate w/ top 3 mix Current Top 3 Top 3 rates w/ current mix
Mix difference explains most es the Yield gap with the Top 3
100% =2
55.3% 51.0% 48.6% 65.6% 28.9% 33.0% 36.6% 23.7% 15.8% 15.9% 14.7% 10.6%
17
7.0 7.1 6.7 6.5
18
Portfolio Mix (%)
66.7% 23.2% 10.0%
Mar-18
66.6% 22.8% 10.6%
Mar-19 Retail: 33.3% Retail: 33.4% Market Share (Mar.2019)
Commercial Mortgage Consumer
Total Loans
Share
12- months
+17 bp
23.3%
19 9.7%
11.9%
0% 5% 10% 15% 20% 25%
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
10.1%
6.2%
0% 2% 4% 6% 8% 10% 12% 14% 16%
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
10.7%
6.1%
0% 5% 10% 15%
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 9.1%
4.2%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Total Loans Mortgage Commercial Consumer
Annual portfolio growth rate
10.2%
6.2%
11.4%
6.3%
Total Funding Breakdown
Interest Rates
31,932 19,904
Debt Issued
35,238
Others1
100%
27,237
Checking accounts and deposits
2.9 2.3 3.2 2.9 Total 0.2 0.3 4.6 4.9
Itaú Corpbanca
1.1 1.2
Average Top 3 ∆ 55 bp 32 bp por mix
Peer-A Peer-B Peer-D
Top 3 rates w/ current mix Current rate w/ top 3 mix
Non-interest bearing liabilities are the main reason for the gap when compared to the 3 players
Time Deposits
1 Others: Repurchases contracts, financial derivatives, bank obligations, letters of credit, other financial obligations, taxes, differed taxes, provisions, other liabilities.
LTM Mar 2019, Ch$ Bn Top 3 Current
20
14.7% 16.8% 23.5% 20.9% 22.6% 23.2% 22.7% 27.4% 33.6% 36.5% 39.8% 39.4% 29.0% 23.6% 14.0% 12.3%
2.6 2.9 2.3 2.6
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
Individuals
By monthly income
(CLP MM)
Companies
By annual sales
(USD MM) Investments > USD 1MM Over $2.5 From $0.6 to $2.5 Up to $0.6
Private Bank Personal Bank Itaú Branches Condell
Over $100 From $8 to $100 From $1 to $8 From $0.1 to $1
Corporate Large Middle Very Small and Small Wholesale Banking Retail Banking
22
Fully implemented segmentation model with well defined identity and value proposition, aimed at optimizing service level, satisfaction and profitability per client.
22 Itaú Personal Bank + 34 Corners PB 123 Itaú Sucursales 56 Condell (Consumer Finance)
Itaú Personal Bank Itaú Sucursales
23
Branch profile in Chile
Continuous improvement of the look and feel of our digital channels. Review and improvement of benefits and
and relationship. Advancing with roll-out of new digital services and offerings. Executing a well defined pipeline of digital solutions.
24
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
20+ multidiciplinary teams fully dedicated that are looking at
processes with a disciplined and focused approach.
150+ releases and new functionalities, user interface and offers through our digital channels Advanced work methodologies and tools Back-end to front-end digitalization of opening of digital accounts process
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more CLIENTS since Jan’17
# sales of retail installment loans
27
91% 22% 9% 78%
Apr'16 Mar'19 Sales through traditional channels Sales through Digital Channels (Internet + App)
DEC 2014
MAR 2015
MAR 2016
MAR 2017
DEC 2017
12-months installment loans growth: Itau vs. Financial System
MAR 2018 MAR 2019
DEC 2018
28
5.8% 9.6% 1.7% 12.4%
abr-16 jun-16 sep-16 dic-16 mar-17 jun-17 sep-17 dic-17 mar-18 jun-18 sep-18 dic-18 mar-19
Financial System Itaú CorpBanca
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
15.6% 7.4% 19.1% 8.1% 16.1% 5.3% 1.4% 3.0% 2.2% 18.9% 3.0% 8.1% 8.4% 16.3% 8.3% 4.5% 5.4% 8.1%
2010 2011 2012 2013 2014 2015 2016 2017 2018 Itaú CorpBanca Chile Chilean Financial System
Average: 11.9% ; 10.5% Average: 2.2% ; 6.0%
Adjusted Non-Interest Expenses annualized growth (%)
In millon of Chilean Pesos
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Non-Interest Expenses - Itaú CorpBanca1 220 255 275 402 545 732 736 801 766 791 (-) Itaú CorpBanca Colombia
(191) (290) (253) (253) (274) (273) Total Non-Interest Expenses - Itaú CorpBanca Chile 220 255 275 328 354 441 483 548 492 518 (-) Credit risk related provisions2 (3) (4) (4) (6) (4) (4) (2) (11) (9) (16) (-) Non-recurring expenses
(54) (101) (31) (39) (-) Depreciation y amortization3 (10) (12) (14) (16) (20) (22) (24) (26) (29) (32) Adjusted Non-Interest Expenses - Itaú CorpBanca Chile 207 239 257 306 331 384 404 410 422 432 Annual growth rate 15.6% 7.4% 19.1% 8.1% 16.1% 5.3% 1.4% 3.0% 2.2% Adjusted Non-Interest Expenses - Chilean Financial System 2,254 2,680 2,761 2,983 3,233 3,760 4,073 4,255 4,484 4,848 Annual growth rate 18.9% 3.0% 8.1% 8.4% 16.3% 8.3% 4.5% 5.4% 8.1%
1 – Includes commissions expenses, personnel expenses, administrative expenses, depreciation and amortization, impairment charges and other operational expenses. All data is Proforma 2 – Consisting of provisions for assets received in lieau of payment and provisions for Country risk. 3 – Does not include amortization of intangibles generated through business combination, already considered as a non-recurring expense.
30
207 239 257 306 331 384 404 410 422 432 6 12 9
2009 2010 2011 2012 2013 2014 2015 aumento 2016 aumento 2017 aumento 2018
207 239 257 306 331 384 404 422 445 481 18 23 36
2009 2010 2011 2012 2013 2014 2015 aumento 2016 aumento 2017 aumento 2018
≠
12 10
Ch$ 49 billion or US$ 76 million1 in synergies captured in the first three years Adjusted Total Expenses evolution – actual1 (Ch$ Bln) Adjusted Total Expenses evolution – System growth rates1 (Ch$ Bln)
≠
+1.4% +3.5% +4.6% +5.6%
27
≠
+2.2% +8.1%
1 – Exchange rate of Ch$ 651.79 / 1 US$, as of February 28th, 2019 As presented in our April 21st, 2016 Investor Update Conference Call to discuss different topics of the merger.
31
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
Notes: 1 Capital Básico = Core Capital, according to SBIF BIS I definitions; includes corresponding adjustments from merger effects of the business combination 2 Patrimonio efectivo = Regulatory Capital, according to SBIF BIS I definitions 3 BIS ratio = Patrimonio efectivo / RWA, according to SBIF BIS I definitions
Ch$ Tn*
1.00
Capital Básico1 Subord. Bond Minority Interest Patrimonio Efectivo2 Goodwill
*Data as of March 31, 2019 Source: Itaú Corpbanca consolidated balance sheet
3.34 0.23 3.39
14.3% BIS Ratio3
1.18
33
Regulatory capital ratio evolution (previous LGB) Estimated1 BIS III capital ratio (new LGB)
Tier I Tier II
1 – Reflects our best estimate for the impact of the implementation of the new Banking Law in Chile. The actual impact depends on definitions still to be set by the Comision para el Mercado Financiero (CMF).
34
14.3% 14.7% 14.3% 6 bp
11 bp
Dec.18 Capital Basico Subordinated Bonds RWA Other Mar.19
10.1% 7.7%
+ / -
Regulatory Capital Ratio (Mar.19) Other Intangible Assets / Net Deferred Taxes Net effect of changes in RWA Estimated Fully Loaded BIS III Capital
4.2% 3.9%
11.6%
Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
36
Recurring Net Income Cost of Credit Financial Margin with Clients Efficiency
2.5% 1.6% 7.9% 5.1%
2.4 1.5 7.8 5.0
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Recurring Net Income RoTE
99.0% 96.1% 77.0% 68.4% 71.3% 58.3% 57.4% 56.3% 54.9% 50.4%
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Efficiency Risk-Adjusted Efficiency
31.2 33.2 22.0 16.1 25.1
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 In Ch$ Billion
2.8% 2.7% 1.8% 1.4% 2.2% 60.8 61.9 61.5 62.7 61.3 5.3% 5.1% 5.1% 5.3% 5.3%
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Financial Margin with Clients Annualized average rate In Ch$ Billion Cost of Credit R
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
The financial information included in this section is based in our managerial model that we adjust for non-recurring events, for the amortization of intangibles arising from business combination, and for the tax effect of the hedge of our investment in Colombia. At the same time, we adjust the Managerial Income Statement with additional reclassifications of P&L lines in order to provide a better clarity of our performance. Please refer to pages 9 and 10 of our Management Discussion & Analysis Report (“MD&A Report”) for further details, available at ir.itau.cl.
38
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
1st Quarter 2019
Consolidated
Ch$ 34.2 bn
Recurring Net Income Recurring RoTE Loans NPL 90+ days Financial Margin with Clients Commissions and Fees Cost of Credit Non-Interest Expenses
21.9%
Chile
Ch$ 29.2 bn
18.9%
1Q19 vs. 4Q18 1Q19 vs. 4Q18
50.1
1Q18 2Q18 3Q18 4Q18 1Q19
50.7 64.9 43.8 34.2
Consolidated
6.9%
2.0p.p.
Chile
7.3%
1.9p.p.
1Q19 vs. 4Q18 1Q19 vs. 4Q18
10.8
1Q18 2Q18 3Q18 4Q18 1Q19
10.5 13.7 8.9 6.9
Consolidated
Ch$ 21.6 tn
Chile
Ch$ 16.8 tn
1Q18 vs. 4Q18 1Q18 vs. 4Q18
20.6
1Q18 2Q18 3Q18 4Q18 1Q19
21.2 21.2 21.5 21.6
Consolidated
2.2%
Chile
1.9%
1Q19 vs. 4Q18 1Q19 vs. 4Q18
2.4
1Q18 2Q18 3Q18 4Q18 1Q19
2.2 2.3 2.1 2.2
Consolidated
Ch$ 202.2 bn
8.1%
Chile
Ch$ 140.8 bn
10.5%
1Q19 vs. 4Q19 1Q19 vs. 4Q18
196.5
1Q18 2Q18 3Q18 4Q18 1Q19
194.1 196.2 220.1 202.2
Consolidated
Ch$ 48.6
6.0%
Chile
Ch$ 39.2
3.6%
1Q19 vs. 4Q18 1Q19 vs. 4Q18
47.2
1Q18 2Q18 3Q18 4Q18 1Q19
49.2 47.4 51.7 48.6
Consolidated
Ch$ 61.6 bn
7.8%
Chile
Ch$ 36.6 bn
27.9%
1Q19 vs. 4Q18 1Q19 vs. 4Q18
61.0
1Q18 2Q18 3Q18 4Q18 1Q19
51.4 59.0 66.9 61.6
Consolidated
Ch$ 154.4 bn
2.6%
Chile
Ch$ 111.2 bn
2.0%
1Q19 vs. 4Q18 1Q19 vs. 4Q18
153.1
1Q18 2Q18 3Q18 4Q18 1Q19
157.0 157.2 158.4 154.4
40
41
in Ch$ billion
1Q'19 4Q'18 % $ 1Q'18 % $
Operating Revenues
187.4 213.7
199.7
Managerial Financial Margin
148.2 173.0
160.3
Financial Margin with Clients
140.8 157.4
135.6
3.8% 5.2
Financial Margin with the Market
7.4 15.7
24.7
Commissions and Fees
39.2 40.7
39.3
Cost of Credit
14.2
22.6%
Provision for Loan Losses
22.8
22.4%
Recovery of Loans Written Off as Losses
8.5 17.8
6.8
25.6% 1.7
CVA
0.5
0.6
0.6
Non-interest Expenses
2.2
2.1%
Income before Tax and Minority Interests
39.7 49.6
60.9
Income Tax
3.1
1.1%
Recurring Net Income
29.2 36.0
50.6
36.0 29.2
14.2 2.2 3.1
4Q'18 Financial Margin with Clients Financial Margin with the Market Commissions and Fees Cost of Credit Non-interest Expenses Income Tax & Other 1Q'19
2 1 3 4
portfolio in 4Q’18 and lower # of calendar days in 1Q’19
42
In Ch$ billion
135.6 134.3 132.6 157.4 140.8
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 +3.8%
135.6 140.8 2.1 3.6
1Q'18 Loan Portfolio Mix Average Loan Portfolio, Loan Spreads and Liabilities Margin Comercial spreads on derivatives and FX transactions with clients Working Capital and
1Q'19
157.4 140.8 1.3
4Q'18 Loan Portfolio Mix Average Loan Portfolio, Loan Spreads and Liabilities Margin Comercial spreads on derivatives and FX transactions with clients Lower number of calendar days Sale of student loans portfolio Working Capital and other 1Q'19
In Ch$ billion
15.7 7.4
1.9
4Q'18 Trading Banking Institutional & Other 1Q'19
Quarterly evolution breakdown (Ch$ billion) UF1 net exposure (Ch$ trillion) UF – Unidad de Fomento1 ( value)
1 – UF (Unidad de Fomento) is an official unit of account in Chile that is constantly adjusted for inflation and widely used in Chile for pricing several loans and contracts.
0.6% 0.7% 0.7% 0.8% 0.0%
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
2.4 1.7 2.2 1.7 1.9
Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
43
44
Cost of Credit Coverage Non Perfoming Loans (90+ days)
In Ch$ Billion Cost of Credit R
Commercial (exStudent Loans) Mortgage Consumer 29.8 25.8 29.4 50.7 36.6
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
0.7% 0.6% 0.7% 1.2% 0.9%
119% 113% 114% 122% 131% 126% 2.5% 2.5% 2.4% 2.4% 2.4% 2.4%
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 NPL90 Coverage Provisions / Loans
1.8% 1.9% 1.8% 1.6% 1.4% 1.5%
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
2.1% 2.0% 1.8% 1.7% 1.7% 1.8%
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
1.9% 1.8% 1.5% 1.8% 1.7% 2.0%
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
45
in Ch$ billion
1Q'19 4Q'18 % $ 1Q'18 % $
Personnel Expenses
5.8
2.7%
Adminsitrative Expenses
5.8%
1.2
Personnel and Administrative Expenses
2.9
0.1%
Depreciation, Amortization and Impairment
8.0%
31.9%
Non-Interest Expenses
2.2
2.1%
change change
54.5% 53.5% 55.6% 53.1% 59.3% 64.1% 61.2% 65.2% 69.6% 73.7%
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 Efficiency ratio Risk-ajusted Efficiency ratio
Risk-adjusted Efficiency ratio
Itaú CorpBanca has presented a noticeable convergence to peers
Spread vs.Peers1: 30-day (annualized) Spread vs.Peers1: 5-year (annualized)
1 – Average of top 3 peers in Chile. As of May 2, 2019; 2 – As of March 31, 2019.
Bonds in CLP & UF (expressed in USD MM) Spread vs.Peers1
Bonds issued in Chile LTM2
46
0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 jul-11
ene-12 abr-12 jul-12
ene-13 abr-13 jul-13
ene-14 abr-14 jul-14
ene-15 abr-15 jul-15
ene-16 abr-16 jul-16
ene-17 abr-17 jul-17
ene-18 abr-18 jul-18
ene-19 abr-19
Chile Santander BCI Itaú Corpbanca
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
ene-12 abr-12 jul-12
ene-13 abr-13 jul-13
ene-14 abr-14 jul-14
ene-15 abr-15 jul-15
ene-16 abr-16 jul-16
ene-17 abr-17 jul-17
ene-18 abr-18 jul-18
ene-19 abr-19
Chile Santander BCI Corpbanca Itaú 117 202 202 121 162 121 121 4 121 121 40 44 147 81 99 202 103 81 81 121 81 81 81 81
01-03-2017 01-05-2017 01-10-2017 01-16-2017 01-20-2017 01-25-2017 02-10-2017 02-16-2017 04-04-2017 04-04-2017 08-25-2017 09-25-2017 10-17-2017 02-06-2018 02-21-2018 03-14-2018 04-13-2018 06-05-2018 02-11-2019 02-15-2019 02-25-2019 02-26-2019 03-07-2019 03-14-2019
15 bp 10 bp 2 bp 11 bp 12 bp 10 bp 13 bp 7 bp 8 bp 7 bp 5 bp 5 bp 7 bp 5 bp 4 bp 9 bp 2 bp 6 bp 6 bp 6 bp 6 bp 4 bp 6 bp 5 bp
Current International Ratings Moody's S&P
Financial Capacity Rating Scale Rating Scale LT ST LT ST Extremely strong Aaa P-1 AAA A-1+ Very strong Aa1 AA+ Aa2 AA Aa3 AA- Strong A1 A+ A-1 A2 A A3 P-2 A- A-2 Adequate Baa1 BBB+ Baa2 P-3 BBB A-3 Baa3 BBB-
+3n +1n
Timeline S&P
47
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
A+ A A- A+ A+ A A
A+ A
A+ A
A
A- A-
BBB+ BBB+ BBB BBB BBB+
Regulatory Liquidity: Mismatch vs. Peers in Chile
Ch$ Bn Límit Capital Básico¹ Total gap - 30 days Total gap - 90 days Total gap - 30 days Total gap - 90 days Peer-A 100% 3,301 1,812 2,363 55% 36% Peer-B 100% 3,286 1,536 3,244 47% 49% Peer-C 100% 3,370 537 1,897 16% 28% Estado 100% 1,722 300 2,070 17% 60% Itaú CorpBanca (Chile only) 100% 3,338 1,012 1,598 30% 24%
Adjusted liquidity gap Use of limit
Itaú CorpBanca has lowest maturity mismatches compared with peers
sheet management both in Chile and in Colombia. BIS III Liquidity Framework – LCR2
1 – According to SBIF BIS I definitions. 2 – LCR: Liquidity Coverage Ratio calculated according to BIS III rules. Regulatory LCR ratios are still under construction in Chile. 3 – Excludes Colombia and Panama. Source: Quarterly liquidity status report as of March 31, 2019 for each bank available in the corresponding websites.
24% 36% 49% 28% 60% Itaú CorpBanca (Chile only) Peer -A Peer -B Peer-C Estado 48
120.5%
70% 90% 110% 130% 150% 170% 190% 210%
04-01-2016 05-01-2016 06-01-2016 07-01-2016 08-01-2016 09-01-2016 10-01-2016 11-01-2016 12-01-2016 01-01-2017 02-01-2017 03-01-2017 04-01-2017 05-01-2017 06-01-2017 07-01-2017 08-01-2017 09-01-2017 10-01-2017 11-01-2017 12-01-2017 01-01-2018 02-01-2018 03-01-2018 04-01-2018 05-01-2018 06-01-2018 07-01-2018 08-01-2018 09-01-2018 10-01-2018 11-01-2018 12-01-2018 01-01-2019 02-01-2019 03-01-2019
LCR CH Límite LCR
3
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
2016
GDP Loan Growth Inflation Interest Rate
2017 2018 2019 2016 2017 2018 2019
2.1% 1.4% 2.7% 3.3% 5.6% 4.5% 10.2% 8-10% 12.2% 6.1% 5.8% 8-10%
50
1.7% 1.3% 4.0% 3.2% 2.7% 2.3% 2.6% 2.6%
2.7%
3.50% 2.50% 2.75% 3.25%
3.50%
5.8% 4.1% 3.2% 3.0%
3.4%
7.50% 4.75% 4.25% 4.25%
4.75%
Previous projection
Current projection
Loan Growth Loan Mix1 Cost of Credit Risk2 Adjusted Non-Interest Expenses Results from Colombia3 Expected
8.0% 10.0%
1 – Retail loans refers to Mortgage and Consumer loan. ; 2 – Net provision for credit & counterparty risks. ; 3 – Managerial Net Income Attributable to Shareholders.
0.7% 0.8%
Continued recovery in profitability In line with inflation Continued increasing retail in loan mix
51
Macroeconomic Backdrop Our Bank Strategic Fronts
Financials
Appendix
All other Assets: Ch$ 27,921 Ch$ 21,620 Ch $6,301 All other Liabilities: Ch$ 25,733 Ch$ 20,012 Ch$ 5,721 Asociado a Intangibles PPA: Ch$ 40 Minority Interest ex GW and PPA Intangibles: Ch$ 192 Assets: 29,363 Liabilities: 25,811 Minority Interest: 223
1Q’19 Average Balance (Ch$ Tn)
Managerial Tangible Equity: Ch$ 1,996 Ch$ 1,606 Ch$ 390 Shareholders’ Equity: 3,329
Managerial Tang. Equity: Recurring Results: Recurring RoTE: Ch$ 1,996 Ch$ 1,606 Ch$ 390 Ch$ 34.2 Ch$ 29.2 Ch$ 5.0
÷ ÷ ÷
6.9% 7.5% 4.3%
= = =
Goodwill: Ch$ 1,177 Ch$ 941 Ch$ 236 Intangibles from PPA: Ch$ 265 Ch$ 129 Ch$ 136 Deferred taxes asociated with intangibles from PPA: Ch$ 78 Ch$ 34 Ch$ 44 Asociated w/ PPA Intangibles: Ch$ 31 GW and PPA Intangibles: Ch$ 1,333 Ch$ 1,035 Ch$ 298
53
Itaú Corpbanca Colombia acquired assets and liabilities of Itaú BBA Colombia
Current Structure in Colombia
Itaú Corpbanca
Itaú Corpbanca Colombia
Colombia assets and liabilities1
12.36% stake of CorpGroup in Itaú Corpbanca Colombia:
‐ The postponement date to purchase is until January 28, 2022 ‐ The purchase price has not changed (US$ 3.5367 per share2) ‐ Itaú Corpbanca will carry out commercially reasonable efforts to register an listing Itaú Corpbanca Colombia in the Colombian Stock Exchange (CSE) ‐ The rational is to create a liquidity mechanism for minorities to sell the stake in the company
‐ On February 28, 2019, a three-member Tribunal of the ICC ordered Helm to sell its shares of Itaú Corpbanca Colombia, which represents 19.44% of the equity of Itaú Corpbanca Colombia at approximately US$299 million (which includes interest at LIBOR plus 2.7% per year running from April 1, 2016) ‐ This price of US$299 million implies a valuation multiple of 1.36 times book value of Itaú Corpbanca Colombia as of December 31, 2018, and is consistent with the valuations of Itaú Corpbanca Colombia in Itaú Corpbanca’s financial statements ‐ The acquisition, when completed, will result in an estimated impact of 0.82% on Itaú Corpbanca’s Common Equity Tier 1 capital, on a fully loaded basis, under the Basel III standards (using exchange rates as of February 28, 2019) ‐ The purchase of shares of Itaú Corpbanca Colombia by Itaú Corpbanca will be subject to regulatory approvals in Colombia, Chile and Brazil CorpGroup Helm Corporation Other Minorities Itaú BBA Colombia (asset and liabilities)
66.28% 12.36% 20.82% 0.54%
Acquisition
1 Itaú Corpbanca Colombia S.A. paid Ch$33,205 million to Itaú BBA Colombia S.A Corporación Financiera; 2 This amount accrues interest from (and including) August 4, 2015 until (but excluding) the payment date at an annual interest rate equal to Libor plus 2.7%.
54
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2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F GDP Growth (%) - World Economy World 4.2 3.5 3.5 3.6 3.5 3.3 3.7 3.7 3.4 3.5 USA 1.6 2.2 1.8 2.5 2.9 1.6 2.2 2.9 2.2 1.7 Euro Zone 1.7
1.4 2.0 1.9 2.5 1.8 1.2 1.2 China 9.5 7.9 7.9 7.4 6.9 6.7 6.8 6.6 6.2 6.0 Japan
1.5 2.0 0.0 1.4 1.0 1.4 0.7 0.6 0.9 GDP Growth (%) - Latam Brazil 4.0 1.9 3.0 0.5
1.1 1.1 1.3 2.5 Chile 6.1 5.3 4.0 1.8 2.3 1.7 1.3 4.0 3.2 4.0 Colombia 7.4 3.9 4.6 4.7 3.0 2.1 1.4 2.7 3.3 3.6 Mexico 4.0 3.6 1.4 2.8 3.3 2.9 2.1 2.0 1.4 1.7 Peru 6.5 6.0 5.8 2.4 3.3 4.0 2.5 4.0 4.0 4.0 Inflation (eop, %) Brazil (IPCA) 6.5 5.8 5.9 6.4 10.7 6.3 2.9 3.7 3.6 3.6 Chile 4.4 1.5 3.0 4.6 4.4 2.7 2.3 2.6 2.6 2.9 Colombia 3.7 2.4 1.9 3.7 6.8 5.8 4.1 3.2 3.0 3.0 Mexico 3.8 3.6 4.0 4.1 2.1 3.4 6.8 4.8 3.6 3.4 Peru 4.7 2.6 2.9 3.2 4.4 3.2 1.4 2.2 2.6 2.5 Monetary Policy Rate (eop, %) Brazil 11.00 7.25 10.00 11.75 14.25 13.75 7.00 6.50 5.75 5.50 Chile 5.25 5.00 4.50 3.00 3.50 3.50 2.50 2.75 3.25 4.00 Colombia 4.75 4.25 3.25 4.50 5.75 7.50 4.75 4.25 4.25 4.50 Mexico 4.50 4.50 3.50 3.00 3.25 5.75 7.25 8.25 7.75 6.75 Peru 4.25 4.25 4.00 3.50 3.75 4.25 3.25 2.75 3.25 4.25 Unemployment Rate (avg, %) Brazil
7.1 6.8 8.5 11.5 12.7 12.3 12.1 11.5 Chile 7.1 6.4 5.9 6.4 6.2 6.5 6.7 7.0 6.9 6.7 Colombia 10.8 10.4 9.6 9.1 8.9 9.2 9.4 9.7 9.8 9.5 Mexico 5.2 4.9 4.9 4.8 4.4 3.9 3.4 3.3 3.6 3.7 Peru 7.7 7.0 5.9 6.0 6.4 6.7 6.9 6.6 6.5 6.4
GDP Growth | % (YoY) Per Capita GDP | US$ Thousand Unemployment rate | % Inflation and Policy Rate | %
5.1 3.3 2.7 3.8 7.0 6.2 5.7 5.2 3.5
5.8 6.1 5.3 4.0 1.8 2.3 1.7 1.3 4.0 3.2 4.0
1 2 3 4 5 6 7 8 00 05 10 15 20
4.5 2.6 2.8 1.1 2.4 3.7 2.6 7.8 7.1
3.0 4.4 1.5 3.0 4.6 4.4 2.7 2.3 2.6 2.6 2.9
2 4 6 8 10 00 05 10 15 20 Inflation Policy Rate
57 5.1 4.6 4.5 4.8 6.2 7.6 9.5 10.510.710.6 12.9 14.2 15.315.6 14.5 13.314.0 15.215.915.7 17.1
2 4 6 8 10 12 14 16 18 00 05 10 15 20
9.7 9.9 9.8 9.5 10.0 9.3 8.0 7.0 7.8 10.8 8.3 7.2 6.5 6.0 6.3 6.3 6.5 6.7 7.0 6.9 6.7
4 5 6 7 8 9 10 11 12 00 05 10 15 20
International Reserves | % of GDP Current Account Balance | % of GDP Central Government Fiscal Balance | % of GDP External Debt | % of GDP
2.1 4.4 7.3 7.8 3.9
1.3 0.6
2 4 6 8 00 05 10 15 20
6.8 5.3 3.7 3.0 2.3 1.9 2.3 2.5 3.0 3.0 3.4 3.9 4.3 5.2 7.8 8.4 49.8 39.0 33.2 29.5 29.7 34.5 38.8 36.4 38.2 42.9 46.1 55.2 62.9 59.6 56.7 54.5
10 20 30 40 50 60 70 03 09 15 Privado Publico
58 19.420.2 21.920.8 16.1 13.812.6 9.8 13.214.2 12.6 17.1 15.614.915.716.215.9 13.913.413.712.7
5 10 15 20 25 00 05 10 15 20
2.6 1.5 4.6 4.1
1.7 1.3
1 2 3 4 5 00 05 10 15 20
GDP Growth | % (YoY) Per Capita GDP | US$ Thousand Unemployment rate | % Inflation and Policy Rate | %
2.9 1.7 2.5 3.9 5.3 4.7 6.8 6.8 3.3 1.2 4.3 7.4 3.9 4.6 4.7 3.0 2.1 1.4 2.7 3.3 3.6
1 2 3 4 5 6 7 8 00 05 10 15 20
2.5 2.4 2.4 2.3 2.8 3.4 3.7 4.7 5.3 5.2 6.3 7.3 8.0 8.1 8.0 6.1 5.8 6.3 6.6 6.5 6.9
1 2 3 4 5 6 7 8 9 00 05 10 15 20
13.3 15.0 15.6 14.113.7 11.812.0 11.211.3 12.011.8 10.810.4 9.6 9.1 8.9 9.2 9.4 9.7 9.8 9.5
5 7 9 11 13 15 17 00 05 10 15 20
8.7 7.6 7.0 6.5 5.5 4.9 4.5 5.7 7.7 2.0 3.2 3.7 2.4 1.9 3.7 6.8 5.8 4.1 3.2 3.0 3.0
5 10 15 00 05 10 15 20 Inflation Policy Rate
59
International Reserves | % of GDP Current Account Balance | % of GDP Central Government Fiscal Balance | % of GDP External Debt | % of GDP
00 05 10 15 20
20.824.023.326.022.0 16.616.314.012.115.813.812.712.413.715.7 22.525.123.121.8 15.6 15.914.814.2 11.6 9.9 8.5 7.6 7.0 7.1 8.8 9.9 8.8 10.4 11.0 15.5 17.4 16.9 17.8
5 10 15 20 25 30 35 40 45 00 05 10 15 Privado Publico
0.9
2 00 05 10 15 20
60 10.411.111.511.6 10.2 9.5 10.110.210.8 9.9 9.6 10.1 11.412.4 15.916.6 15.314.7 16.216.2
2 4 6 8 10 12 14 16 18 01 06 11 16
May 2019