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Institutional Investors Presentation Ita Corpbanca August 2019 - - PowerPoint PPT Presentation

Institutional Investors Presentation Ita Corpbanca August 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


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SLIDE 1

Itaú Corpbanca

Institutional Investors Presentation

August 2019

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SLIDE 2

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 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 of 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, 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 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. 2

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SLIDE 3

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

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SLIDE 4

Macroeconomic Backdrop

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

4

3.3 5.3 5.0 4.5 3.0 3.5 3.5 2.5 2.8 2.0 2.0 3.0 4.8 4.3 3.3 4.5 5.8 7.5 4.8 4.3 4.0 3.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)

Chile Colombia 5.8 6.1 5.3 4.0 1.8 2.3 1.7 1.3 4.0 2.4 2.9 4.0 7.4 3.9 4.6 4.7 3.0 2.1 1.4 2.6 2.6 2.8

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 2.8 2.9 3.2 3.7 2.4 1.9 3.7 6.8 5.8 4.1 3.2 3.8 3.2

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

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SLIDE 5

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

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SLIDE 6

Our Bank | Resulting from the merger of BIC and Corpbanca: Two different strategies

6

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SLIDE 7

To be the leading bank in sustainable performance and customer satisfaction

  • 1. Implement a customer satisfaction-oriented culture, that is business-driven, through a simplified operational structure
  • 2. Maximize shareholder returns, aiming at firm-wide growth
  • 3. We aspire to be the preferred bank for top talents at every level
  • Attract and retain committed professionals with high ethical standards and strong organizational pride
  • Shared leadership, conquered through talent and commitment to excellence, focused on meritocracy
  • 4. Create an atmosphere that inspires creativity, entrepreneurialism and the exchange of ideas
  • 5. Pursue a cutting-edge technology, striving to best serve our client needs, ultimately creating value
  • 6. Uphold the highest ethical standards in the relationship with clients, employees, regulators, society and the markets

Our Bank | Our Vision

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SLIDE 8

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.

  • 1. It´s only good for us if it’s good for the client

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.

  • 2. We’re passionate about performance

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.

  • 3. People mean everything to us

Everything we do is carried out by people. Talented people who enjoy working in a collaborative atmosphere, based on meritocracy and high performance.

  • 4. The best argument is the one that matters

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.

  • 5. Simple. Always

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.

  • 6. We think and act like owners

We always think like business owners, leading by example and putting collective objectives before personal ambition.

  • 7. Ethics are non-negotiable

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.

Our Bank | Our Way

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SLIDE 9

Our Bank | Integration Milestones

2018 2017 2016

Merger Transition Construction

  • Team building: senior and middle

management

  • Corporate Governance, risk

management framework and other policies

  • Balance sheet and liquidity

strenghtening

  • Full focus on client satisfaction
  • Focus on increasing and

sustainable results

  • Completing technological

integration and advancing with digital agenda

  • Strengthening our culture

throughout the organization

  • Completion of retail migration and client

segmentation in Chile

  • Initial roll out of Digital initiatives
  • Resuming business growth in retail
  • Introduction of Itaú Brand in the

Colombian retail Market

Consolidation

  • Continue to deepen Itaú’s

management model (commercial growth; people management; risk management)

  • Resume growth in commercial loans
  • Advance in the process of digital

transformation

  • Client centricity adapting Itaú

experience, listening and engaging customers

2019 

9

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SLIDE 10

We are key part of Itaú Unibanco’s Internationalization Strategy

Regional footprint & main indicators 1 2

10.2% 4.6% 3

Market Share

US$ 25.5 bn US$ 7.0 bn

Loans 1

US$ 32.5 bn

5,510 4 3,430 5

Headcount 1

8,940 194 157

Branches 1

351

US$ 36.1 bn US$ 9.8 bn

Assets 1

US$ 45.9 bn US$ 78 mn US$ 11 mn

Recurring Net Income 2Q19

US$ 89 mn

13.0% 7.6%

Recurring RoTAE 2Q19 6

11.9%

1 Information as of June 30, 2019; 2 Figures were converted at an exchange rate of 678.42 CLP/USD; 3 Information as of May 31, 2019; 4 Includes headcount of our New York branch and since 1Q’18 also from our RepOffices in Lima and Madrid; 5 Includes

headcount of Itaú (Panamá); 6 Tangible Equity: Shareholders equity net of goodwill, intangibles from business combination and related deferred tax liabilities. Sources: Itaú Corpbanca, CMF and SFC.

Our Bank | Highlights

10

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SLIDE 11

(US$ Bn) US$ Bn US$ Bn

4 Caixa

  • 7. Banorte

Santander Bradesco 9 Citibank Banco do Brasil 8 BBVA Scotiabank 1 2 3 4 5 6 7 8 9 15 BCI Grupo Aval

  • 5. BBVA

Santander Scotiabank Banco del Estado de Chile 1 2 3 5 6 7 Banco de Chile Bancolombia Itaú Corpbanca3 9 8

Itaú Corpbanca represents 23%

  • f Itaú Unibanco’s consolidated

loan portfolio6

Itaú Unibanco2 10 Itaú Corpbanca3 Itaú LatAm5

1  Data as of March 31, 2019. Includes Brasil, México, Colombia, Chile, Argentina, Paraguay, Peru and Uruguay; 2 Includes Brasil, México, Argentina, Peru, Uruguay, Paraguay, Chile and Colombia; 3 Includes Chile and Colombia (Itaú Corpbanca Chile with ~US$34MMM in assets); 4 Data as of March 31, 2019. Includes Colombia, Chile, Argentina, Paraguay, Peru and Uruguay; 5 Includes Colombia, Chile, Argentina, Paraguay, Peru and Uruguay; 6– Considering the consolidated loan portfolios of Itaú Unibanco and Itaú Corpbanca reported in their respective 2Q’19 MD&As at a R$ 3.8336 / US$ and a Ch$ 678.42 / US$ foreign exchange rates as of 30.06.2019. Source: Central Banks, local regulators, companies filings, Itaú Corpbanca.

Banks by Assets in Latin America1 Banks by Assets in South America (ex-Brazil)4 Loan portfolio as of Jun.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)

Our Bank | Relevance Across Latin America

11 387 421 326 105 351 75 334 162 60 44 52 53 58 51 44 77 79 60 58 48

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SLIDE 12

US$ 4.0 Bn Market Cap. (Aug. 16, 2019)

Average daily traded volumes 12 months ended June 30, 2019

Source: Sell-side reports.

1 – For Itaú Corpbanca and BCI consider shareholders equity net of goodwill and intangibles from business combination.

Buy: 3 Hold: 5 Sell: 0

Sell-side rating:

12

% Total share capital as of July 31, 2019

Our Bank | Shareholders & Stock Market

3.05 0.20 3.26

Santiago NY Total

Price-to-Book1

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SLIDE 13

Board Chile

Wholesale

Manuel Olivares

Treasury Marketing & Products IT Human Resources Retail CRO Legal

Álvaro Pimentel

Treasury Derek Sassoon CRO Juan Ignacio Castro

  • Credit Risk:

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

13

Our Bank | Experienced Senior Management to Implement Strategy

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SLIDE 14

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

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SLIDE 15

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

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SLIDE 16
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

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SLIDE 17

Growth | Business Mix an Opportunity for Retail Growth 1

1 Yearly average gross loans; 2 Loan interests by segments; Source: CMF; Itaú Corpbanca; Team Analysis.

Loans breakdown by segment¹

LTM Jun 2019, Ch$ Bn

13.8 7.2 13.8 6.8 Total 6.3 6.3 5.8 5.9

Itaú Corpbanca Average Top 3

Interest Rates

27,700

Consumer Commercial

16,263 22,511

Mortgage

30,319

∆ -36 bp

  • 42 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

55.2% 50.8% 48.9% 65.7% 29.1% 33.3% 36.4% 23.6% 15.8% 15.9% 14.6% 10.7%

17

7.2 7.3 6.8 6.8

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SLIDE 18

Growth | Portfolio Mix 1

18

Portfolio Mix (%)

66.7% 23.2% 10.0%

Mar-18

66.6% 22.8% 10.6%

Mar-19 Retail: 33.4% Retail: 33.5% Market Share (Jun.2019)

7.3%

Commercial Mortgage Consumer

7.8% 12.2%

Total Loans

10.2%

+21 bp

  • 42 bp
  • 11 bp
  • 17 bp

Share

 12- months

+10 bp

23.3%

Jun-18 Jun-19

66.6% 10.1% 66.5% 10.7%

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SLIDE 19

Growth | Credit Portfolio Growth Rate 1

19

Total Loans Mortgage Commercial1 Consumer

8.6%

6.7%

jun-15 jun-16 jun-17 jun-18 jun-19 7.9%

7.7%

jun-15 jun-16 jun-17 jun-18 jun-19

10.1%

4.4%

jun-15 jun-16 jun-17 jun-18 jun-19

9.1%

12.4%

jun-15 jun-16 jun-17 jun-18 jun-19

(1) Ex Student loans portfolio

6.8% 7.8%

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SLIDE 20

Growth | Commercial Credit Portfolio 1

20

Commercial1 Middle Market – Credit Portfolio (Base 100) Real Estate – Credit Portfolio (Base 100)

7.9%

7.7%

jun-15 jun-16 jun-17 jun-18 jun-19

100.0 113.1 jun-18 sep-18 dec-18 mar-19 jun-19 100.0 112.0 jun-18 sep-18 dec-18 mar-19 jun-19 100.0 96.0 jun-18 sep-18 dec-18 mar-19 jun-19

(1) Ex Student loans portfolio

7.8%

Corporate – Credit Portfolio (Base 100)

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SLIDE 21

Total Funding Breakdown

Interest Rates

32,484 20,252

Debt Issued

36,230

Others1

100%

27,609

Checking accounts and deposits

3.0 2.5 3.3 3.0 Total 0.3 0.3 4.9 5.3

Itaú Corpbanca

1.4 1.1

Average Top 3 ∆ 49 bp 35 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 Jun 2019, Ch$ Bn Top 3 Current

Growth | Funding Mix an Opportunity to Increase Profitability 1

21

15.1% 17.7% 24.5% 21.3% 22.7% 23.1% 22.3% 27.5% 33.4% 35.9% 38.9% 39.0% 28.9% 23.3% 14.4% 12.2%

2.9 3.0 2.7 2.5

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SLIDE 22
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

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SLIDE 23

Client Centricity | Current Scale Allows for Better Segmentation 2

Individuals

By monthly income

(CLP MM)

Companies

By annual sales

(USD MM) Over $8.0 From $2.5 to $8.0 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

23

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SLIDE 24

Fully implemented segmentation model with well defined identity and value proposition, aimed at optimizing service level, satisfaction and profitability per client.

23 Itaú Personal Bank + 34 Corners PB 114 Itaú Sucursales 55 Condell (Consumer Finance)

Itaú Personal Bank Itaú Sucursales

Client Centricity | Individuals Segmentation Overview 2

24

Branch profile in Chile

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SLIDE 25

Continuous improvement of the look and feel of our digital channels. Review and improvement of benefits and

  • ffers linked to stronger transactionality

and relationship. Advancing with roll-out of new digital services and offerings. Executing a well defined pipeline of digital solutions.

Client Centricity | Client Experience, Digital Banking and Value Offer 2

25

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SLIDE 26
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

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SLIDE 27

Digital Transformation | Initial Roll out of Digital Initiatives 3

20+ multidiciplinary teams fully dedicated that are looking at

  • pportunities for change and are re-thinking the entire bank

processes with a disciplined and focused approach.

Building a Digital Bank from inside…. Out.

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

27

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SLIDE 28

Digital Transformation | Retail Banking 3

28

77%

Small Companies

Retail Digital Clients2

+5%

Individuals

ADOPTION IN 12 MONTHS

68% +24%

1Q17 1Q19

Consumer Credit

41% 86% 45 p.p.

Credit Limits

29% 75% 46 p.p.

Credit Card Advance

79% 89% 10 p.p.

Time Deposits

59% 75% 16 p.p.

Digital Branch

Digital Approach Multi-Channel Remote Access Extended Hours Account Load

Digital Branch

Jan/19

198

Jun/19

650

Personal Bank Clients

New Clients1 Transactions Though digital channels

  • Pilot

1.0x 1.8x

Jun-18 Jun-19

(1) Considers the number of current accounts opened in each month. (2) May-19

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SLIDE 29

7.5%

DEC 2014

7.4%

MAR 2015

7.2%

MAR 2016

7.0%

MAR 2017

7.7%

DEC 2017

12-months installment loans growth: Itau vs. Financial System

Installment Loans market share Digital Transformation | Aimed to Balance our Business Mix 3

8.1%

MAR 2018 MAR 2019

7.9%

DEC 2018

8.0%

29

5.8% 8.9% 1.7% 13.1%

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 jun-19

Financial System Itaú CorpBanca

8.3%

JUN 2019

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SLIDE 30
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

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SLIDE 31

Average: 11.9% ; 10.5%

Adjusted Non-Interest Expenses annualized growth (%)

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.

Efficiency | Focus on Synergies: Compared Evolution of Total Expenses 4

31

15.6% 7.4% 19.1% 8.1% 16.1% 5.3% 1.4% 3.0% 2.2%

  • 1.3%

18.9% 3.0% 8.1% 8.4% 16.3% 8.3% 4.5% 5.4% 8.1% 7.4%

2010 2011 2012 2013 2014 2015 2016 2017 2018 6M19 x 6M18 Itaú CorpBanca Chile Chilean Financial System

In millon of Chilean Pesos

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6M'18 6M'19 Total Non-Interest Expenses - Itaú CorpBanca1 220 255 275 402 545 732 736 801 766 791 390 399 (-) Itaú CorpBanca Colombia

  • (74)

(191) (290) (253) (253) (274) (273) (134) (136) Total Non-Interest Expenses - Itaú CorpBanca Chile 220 255 275 328 354 441 483 548 492 518 256 263 (-) Credit risk related provisions2 (3) (4) (4) (6) (4) (4) (2) (11) (9) (16) (11) (5) (-) Non-recurring expenses

  • (32)

(54) (101) (31) (39) (14) (14) (-) Depreciation y amortization3 (10) (12) (14) (16) (20) (22) (24) (26) (29) (32) (15) (31) Adjusted Non-Interest Expenses - Itaú CorpBanca Chile 207 239 257 306 331 384 404 410 422 432 217 214 Annual growth rate 15.6% 7.4% 19.1% 8.1% 16.1% 5.3% 1.4% 3.0% 2.2%

  • 1.3%

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 2,323 2,495 Annual growth rate 18.9% 3.0% 8.1% 8.4% 16.3% 8.3% 4.5% 5.4% 8.1% 7.4%

Average: 1.3% ; 6.3%

slide-32
SLIDE 32

10 27

Ch$ 68 billion or US$ 101 million1 in synergies captured since the merger Adjusted Total Expenses evolution – actual1 (Ch$ Bln) Adjusted Total Expenses evolution – System growth rates1 (Ch$ Bln)

19

1 – Exchange rate of Ch$ 678.42 / 1 US$, as of June 28th, 2019

Efficiency | Estimated Synergies Captured to Date 4

32

207 239 257 306 331 384 404 422 445 481 217 233 18 23 36 16

2009 2010 2011 2012 2013 2014 2015 increase 2016 increase 2017 increase 2018 6M18 increase 6M19

207 239 257 306 331 384 404 410 422 432 217 214 6 12 9 ( 3 )

2009 2010 2011 2012 2013 2014 2015 increase 2016 increase 2017 increase 2018 6M18 increase 6M19

+1.4% +4.6% +3.5% +5.6% +2.2% +8.1%

  • 1.3%

+7.4%

12

slide-33
SLIDE 33
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

slide-34
SLIDE 34

Notes: 1  Capital Básico = Core Capital, according to CMF BIS I definitions; includes corresponding adjustments from merger effects of the business combination 2  Patrimonio efectivo = Regulatory Capital, according to CMF BIS I definitions 3  BIS ratio = Patrimonio efectivo / RWA, according to CMF BIS I definitions

Ch$ Tn*

1.02

Capital Básico1 Subord. Bond Minority Interest Patrimonio Efectivo2 Goodwill

*Data as of June 30, 2019 Source: Itaú Corpbanca consolidated balance sheet

3.38 0.23 3.45

14.5% BIS Ratio3

1.18

34

Capital Generation | Regulatory Capital Composition 5

slide-35
SLIDE 35

35

Capital Generation | Estimated BIS III Capital Ratio 5

10,2%

  • 2,4%
  • 0,2%

7,6%

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

  • f changes in RWA

Estimated Fully Loaded BIS III Capital

4.3% 14.5%

CET 1

4.5%

New LGB (Dec. 2024)

SIFI (est.) CCB AT1

11.5% 1,5% 1.0%

Total Capital

2.5% 8.0%

Tier II

9.5%

CET 1 Tier I

2.0% 3.8% 11.4%

  • 0.5%

Max use of Tier II

10.2%

  • 2.4%
  • 0.2%

7.6%

Tier I Tier II

Regulatory Capital Ratio (Jun.2019)

slide-36
SLIDE 36
  • 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

Growth

  • Culture of innovation and transformation
  • Efficiency and improvement of user experience
  • Seamless integration from back-office to front-office
  • Segmentation model with well defined identity and value proposition
  • Development of products and a “service culture” focused on client satisfaction and long-term relationships

2 1 3 4

  • 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

Digital Transformation Client Centricity Efficiency

5

  • Efficiently managing capital allocation through adequate cost of equity
  • Value creation and RAROC metrics and tools as a driver throughout the organization

Capital Generation

6

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

Colombia

Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model

slide-37
SLIDE 37

37

Colombia | Highlights 6

Contribution to the Consolidated Recurring Net Income Highlights

(1) Evolution in constant currency

2Q19 x 1Q19

Recurring Net Income RoTE 7.6% +2.5 p.p. Loan Portfolio1 Total Assets1 2Q19 Ch$ 4.7 Tn +1.2% Ch$ 7.6 Bn +52.3% Ch$ 6.7 Tn +3.2%

Recurring Net Income Evolution

In Ch$ Billion Ch$ million

slide-38
SLIDE 38

38

Colombia | Highlights 6

Cost of Credit1 Operating Revenues1 Efficiency

57.4% 56.3% 54.9% 50.4% 54.3% 96.1% 77.0% 68.4% 71.3% 66.8%

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

Efficiency Risk-Adjusted Efficiency In Ch$ Billion In Ch$ Billion

31.8 21.0 16.1 25.0 15.5 2.6% 1.7% 1.4% 2.1% 1.3%

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

Cost of Credit Risk Cost of Credit Risk / Average Loans

45.2 44.0 44.7 42.9 44.8

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

Non-Interest Expenses1

In Ch$ Billion

79.0 78.3 81.5 85.1 82.7

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

+4.7%

  • 2.9%

(1) Figures in constant currency

4.4% +

  • 0.9%
slide-39
SLIDE 39

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 1Q19
  • 2. Perspectives for 2019

Appendix

slide-40
SLIDE 40

Financials | Financial Information

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.

40

slide-41
SLIDE 41

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

slide-42
SLIDE 42

Consolidated

Ch$ bn

2.2 22.1 11.9

Recurring Net Income Recurring RoTE Loans NPL 90+ days Financial Margin with Clients Commissions and Fees Cost of Credit Non-Interest Expenses

76.7%

Chile

Ch$ bn 80.8%

2Q19 vs. 1Q19 2Q19 vs. 1Q19

Consolidated

5.0

Chile

1.9% 2.4%

2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19

Consolidated

Ch$ bn

Chile

Ch$ bn

2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19

Consolidated

Ch$ bn

Chile

Ch$ bn

2Q19 vs. 1Q19 2Q19 vs. 1Q19

Consolidated

Ch$ bn

Chile

Ch$ bn

2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19 2Q19 vs. 1Q19

Consolidated

Ch$ tn

Chile

Ch$ tn

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

64.9

2Q18 3Q18 4Q18 1Q19 2Q19

43.8 50.7 34.2 60.4 13.7

2Q18 3Q18 4Q18 1Q19 2Q19

8.9 10.5 6.9 21.2

2Q18 3Q18 4Q18 1Q19 2Q19

21.5 21.2 21.7 2.3

2Q18 3Q18 4Q18 1Q19 2Q19

2.1 2.2 2.2

60.4 52.8

Consolidated

Ch$ bn

Chile

Ch$ bn 11.9 13.0

p.p. p.p.

5.7

% %

22.1 17.4

Consolidated

0.0

Chile

2.2 1.9

p.p. p.p.

0.0

% %

2.4% 4.0%

196.2 220.1 194.1 202.2 206.9

206.9 146.5 3.6% 4.8%

47.4 51.7 49.2 48.6 50.3

50.3 41.1

  • 7.0%

14.7%

59.0 66.9 51.4 61.6 57.4

57.4 41.9 1.8% 1.2%

157.2 158.4 157.0 154.4 157.2

157.2 112.5

Highlights

2nd Quarter 2019

42

slide-43
SLIDE 43

43

About 2Q19 | Managerial Results 1

In Ch$ billion

2Q'19 1Q'19 % $ 2Q'18 % $ Operating Revenues 212.0 187.4 13.1% 24.6 205.5 3.1% 6.4 Managerial Financial Margin 170.9 148.2 15.3% 22.7 167.6 1.9% 3.2 Financial Margin with Clients 146.5 140.8 4.0% 5.7 134.3 9.1% 12.2 Financial Margin with the Market 24.4 7.4 229.7% 17.0 33.3

  • 26.9%
  • 9.0

Commissions and Fees 41.1 39.2 4.8% 1.9 37.9 8.5% 3.2 Cost of Credit

  • 41.9
  • 36.6

14.7%

  • 5.4
  • 25.8

62.4%

  • 16.1

Provision for Loan Losses

  • 53.8
  • 45.6

18.0%

  • 8.2
  • 45.8

17.4%

  • 8.0

Recovery of Loans Written Off as Losses 11.5 8.5 35.1% 3.0 11.8

  • 2.7%
  • 0.3

CVA 0.3 0.5

  • 37.9%
  • 0.2

8.1

  • 96.3%
  • 7.8

Non-interest Expenses

  • 112.5
  • 111.2

1.2%

  • 1.3
  • 110.1

2.2%

  • 2.5

Income before Tax and Minority Interests 57.5 39.7 45.0% 17.9 69.7

  • 17.4%
  • 12.1

Income Tax

  • 4.7
  • 10.5
  • 55.1%

5.8

  • 7.2
  • 34.5%

2.5 Recurring Net Income 52.8 29.2 80.8% 23.6 62.5

  • 15.6%
  • 9.7

29.2 52.8 5.7 17.0 1.9

  • 5.4
  • 1.3

5.8 1Q'19 Financial Margin with Clients Financial Margin with the Market Commissions and Fees Cost of Credit Non-interest Expenses Income Tax & Other 2Q'19

B A C D

slide-44
SLIDE 44

44

About 2Q19 | Financial Margin with Clients 1

In Ch$ billion 134.3 132.6 157.4 140.8 146.5

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 + 134.3 146.5 2.1 7.6 2.7

  • 0.2

2Q'18 Loan Portfolio Mix Average Loan Portfolio, Loan Spreads and Liabilities Margin Comercial spreads on derivatives and FX transactions with clients Working Capital and

  • ther

2Q'19

140.8 146.5 0.1 4.0 0.0 1.0 0.3 0.3

1Q'19 Loan Portfolio Mix Average Loan Portfolio, Loan Spreads and Liabilities Margin Comercial spreads on derivatives and FX transactions with clients Calendar days Sale of student loans portfolio Working Capital and other 2Q'19

4.0% 9.1% +

A

slide-45
SLIDE 45

About 2Q19 | Financial Margin with the Market 1

In Ch$ billion

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.

45

1.7 2.2 1.7 1.9 2.0

jun-18 sep-18 dec-18 mar-19 jun-19

0.7% 0.7% 0.8% 0.0% 1.2%

  • 0.5%

0.0% 0.5% 1.0% 1.5%

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

B

7.4 24.4

slide-46
SLIDE 46

About 2Q19 | Cost of Credit and Credit Quality 1

46

Cost of Credit Coverage Non Perfoming Loans (90+ days -%) and NPL Creation (Ch$ billion)

In Ch$ Billion Cost of Credit R

Commercial (exStudent Loans) Mortgage Consumer

25.8 29.4 50.7 36.6 41.9

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

0.6% 0.7% 1.2% 0.9% 1.0%

113% 114% 122% 131% 126% 129% 2.5% 2.4% 2.4% 2.4% 2.4% 2.4%

mar-18 jun-18 sep-18 dec-18 mar-19 jun-19 NPL90 Coverage Provisions / Loans

1.9% 1.8% 1.6% 1.4% 1.5% 1.4%

mar-18 jun-18 sep-18 dec-18 mar-19 jun-19

2.0% 1.8% 1.7% 1.7% 1.8% 1.7%

mar-18 jun-18 sep-18 dec-18 mar-19 jun-19

1.8% 1.5% 1.8% 1.7% 2.0% 1.7%

mar-18 jun-18 sep-18 dec-18 mar-19 jun-19

12 11

  • 14

24 6

  • 2
  • 3

3 3

  • 1

21 18 27 23 29 21

C

slide-47
SLIDE 47

About 2Q19 | Non-Interest Expenses and Efficiency 1

47

in Ch$ billion

2Q'19 1Q'19 % $ 2Q'18 % $ 1S'19 1S'18 % $

Personnel Expenses

52.5 49.9

5.3% 2.6

47.4

10.8% 5.1

102.4 96.0

6.7% 6.4

Adminsitrative Expenses

50.6 52.3

  • 3.1%
  • 1.6

55.2

  • 8.3%
  • 4.6

102.9 108.7

  • 5.4%
  • 5.8

Personnel and Administrative Expenses

103.1 102.1

1.0% 1.0

102.6

0.5% 0.5

205.3 204.7

0.3% 0.6

Depreciation, Amortization and Impairment

9.4 9.1

3.7% 0.3

7.4

26.5% 2.0

18.4 14.3

29.1% 4.2

Non-Interest Expenses

112.5 111.2

1.2% 1.3

110.1

2.2% 2.5

223.7 219.0

2.2% 4.8 change change change

53.5% 55.6% 53.1% 59.3% 53.1% 61.2% 65.2% 69.6% 73.7% 66.2%

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 Efficiency ratio Risk-ajusted Efficiency ratio 202 202 201 201 193 1 1 1

202 202 194

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 Sucursales Sucursal Digital

D

D

slide-48
SLIDE 48

Itaú Corpbanca has presented a noticeable convergence to peers

Spreads Itaú vs.Peers1: 30-day (annualized) Spreads Itaú vs.Peers1: 5-year (annualized)

1 – Average of top 3 peers in Chile. As of Aug 14, 2019; 2 – As of June 30, 2019.

Bonds in CLP & UF (expressed in USD MM) Spread vs.Peers1

Bonds issued in Chile LTM2

48

About 2Q19 | Debt Spread Evolution 1

  • 0.25

0.00 0.25 0.50 0.75 1.00 1.25 1.50

Peer A Peer B Peer C Itaú Corpbanca

0.0 0.5 1.0 1.5 2.0 2.5

Peer A Peer B Peer C Corpbanca Itaú

123 123 41 44 147 82 101 205 103 82 82 123 82 82 82 82 103 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 05-07-2019

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 4 bp

slide-49
SLIDE 49

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

49

About 2Q19 | Rating Upgrades in 2016 Contribute to Further Reduction in Cost of Funds 1

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+

slide-50
SLIDE 50

Ch$ Bn Límit Capital Básico¹ Total gap - 30 days Total gap - 90 days Total gap - 30 days Total gap - 90 days Peer-A 100% 3,393 1,393 1,920 41% 28% Peer-B 100% 3,286 1,944 3,842 59% 58% Peer-C 100% 3,603 186 2,051 5% 28% Estado 100% 1,741 825 2,725 47% 78% Itaú CorpBanca (Chile only) 100% 3,377 1,072 1,429 32% 21%

a

Adjusted liquidity gap Use of limit

Itaú Corpbanca has lowest maturity mismatches compared with peers

BIS III Liquidity Framework – LCR2 & NSFR3

21% 28% 58% 28% 78% Itaú CorpBanca (Chile only) Peer -A Peer -B Peer-C Estado 50

About 2Q19 | Liquidity Risk 1

125.2%

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 04-01-2019 05-01-2019 06-01-2019

LCR CH LCR Limit

4

Chile Colombia LCR (%) 122.2% 170.0% NSFR (%) 91.6% 87.4%

1 – According to CMF BIS I definitions. 2 – LCR: Liquidity Coverage Ratio calculated according to BIS III rules. Regulatory LCR ratios are still under construction in Chile. 3 – NSFR: Net Stable Funding Ratio, the methodology used to estimate NSFR consist of liquidity ratio proposed by the “Basel III Committee on Banking Supervision” (“BIS III”) that was adopted by the CMF and the Brazilian Central Bank (BACEN) and only the BACEN set a limit for NSFR. 4 – Excludes Colombia and Panama. Source: Quarterly liquidity status report as of June 30, 2019 for each bank available in the corresponding websites.

Regulatory Liquidity: Mismatch vs. Peers in Chile

slide-51
SLIDE 51

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

slide-52
SLIDE 52

2.1% 1.4% 2.6% 2.6% 3.3%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

2016

GDP Loan Growth Inflation Interest Rate

2017 2018 2019 2016 2017 2018 2019

12.2% 6.1% 5.8% 8-10%

Perspectives for 2019 | Macroeconomic Outlook 2

52

Initial projection for 2019

Current projection for 2019

2.7% 2.3% 2.6% 2.8% 2.7% 3.5% 2.5% 2.75% 2.0% 3.5% 5.8% 4.1% 3.2% 3.4% 7.50% 4.75% 4.25% 4.00% 4.75% 1.7% 1.3% 4.0% 2.4% 3.2%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%

5.6% 4.5% 10.2% 8-10%

slide-53
SLIDE 53

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

Perspectives for 2019 2

53

slide-54
SLIDE 54

Agenda

Macroeconomic Backdrop Our Bank Strategic Fronts

  • 1. Growth
  • 2. Client Centricity
  • 3. Digital Transformation
  • 4. Efficiency
  • 5. Capital Generation
  • 6. Colombia

Financials

  • 1. About 2Q19
  • 2. Perspectives for 2019

Appendix

slide-55
SLIDE 55

Average Tangible Equity Breakdown

All other Assets: Ch$ 29,136 Ch$ 22,542 Ch $6,594 All other Liabilities: Ch$ 26,911 Ch$ 20,912 Ch$ 5,999 Asociado a Intangibles PPA: Ch$ 40 Minority Interest ex GW and PPA Intangibles: Ch$ 195 Assets: 30,565 Liabilities: 26,985 Minority Interest: 225

2Q’19 Average Balance (Ch$ Tn)

Managerial Tangible Equity: Ch$ 2,030 Ch$ 1,628 Ch$ 402 Shareholders’ Equity: 3,355

Managerial Tang. Equity: Recurring Results: Recurring RoTE: Ch$ 2,030 Ch$ 1,628 Ch$ 402 Ch$ 60.4 Ch$ 52.8 Ch$ 7.6

÷ ÷ ÷

11.9% 13.0% 7.6%

= = =

Goodwill: Ch$ 1,175 Ch$ 941 Ch$ 234 Intangibles from PPA: Ch$ 254 Ch$ 123 Ch$ 130 Deferred taxes asociated with intangibles from PPA: Ch$ 74 Ch$ 33 Ch$ 41 Asociated w/ PPA Intangibles: Ch$ 30 GW and PPA Intangibles: Ch$ 1,325 Ch$ 1,031 Ch$ 293

55

slide-56
SLIDE 56

Transaction in Colombia

Itaú Corpbanca Colombia acquired assets and liabilities of Itaú BBA Colombia

Current Structure in Colombia

Itaú Corpbanca

Itaú Corpbanca Colombia

  • On June 16, 2017 Itaú Corpbanca Colombia acquired Itaú BBA

Colombia assets and liabilities1

  • Postponement of the date for Itaú Corpbanca to purchase the

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

  • Itaú Corpbanca to buy Helm stake in Itaú Corpbanca Colombia

‐ 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%.

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Global Macroeconomic Outlook

58

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 3.2 3.0 USA 1.6 2.2 1.8 2.5 2.9 1.6 2.2 3.3 2.2 1.5 Euro Zone 1.7

  • 0.8
  • 0.2

1.4 2.0 1.9 2.5 1.9 1.0 1.0 China 9.5 7.9 7.9 7.4 6.9 6.7 6.8 6.5 6.2 5.7 Japan

  • 0.1

1.5 2.0 0.0 1.3 0.6 1.9 0.8 0.8 0.4 GDP Growth (%) - Latam Brazil 4.0 1.9 3.0 0.5

  • 3.5
  • 3.3

1.1 1.1 0.8 1.7 Chile 6.1 5.3 4.0 1.8 2.3 1.7 1.3 4.0 2.4 2.9 Colombia 7.4 3.9 4.6 4.7 3.0 2.1 1.4 2.6 2.6 2.8 Mexico 4.0 3.6 1.4 2.8 3.3 2.9 2.1 2.0 0.6 1.1 Peru 6.5 6.0 5.8 2.4 3.3 4.0 2.5 4.0 3.1 3.2 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 2.8 2.9 Colombia 3.7 2.4 1.9 3.7 6.8 5.8 4.1 3.2 3.8 3.2 Mexico 3.8 3.6 4.0 4.1 2.1 3.4 6.8 4.8 3.7 3.4 Peru 4.7 2.6 2.9 3.2 4.4 3.2 1.4 2.2 2.1 2.0 Monetary Policy Rate (eop, %) Brazil 11.00 7.25 10.00 11.75 14.25 13.75 7.00 6.50 5.00 5.00 Chile 5.25 5.00 4.50 3.00 3.50 3.50 2.50 2.75 2.00 2.00 Colombia 4.75 4.25 3.25 4.50 5.75 7.50 4.75 4.25 4.00 3.50 Mexico 4.50 4.50 3.50 3.00 3.25 5.75 7.25 8.25 7.50 6.50 Peru 4.25 4.25 4.00 3.50 3.75 4.25 3.25 2.75 2.25 2.25 Unemployment Rate (avg, %) Brazil

  • 7.4

7.1 6.8 8.5 11.5 12.7 12.3 11.9 11.7 Chile 7.1 6.4 5.9 6.4 6.2 6.5 6.7 7.0 7.0 7.2 Colombia 10.8 10.4 9.6 9.1 8.9 9.2 9.4 9.7 10.3 10.0 Mexico 5.2 4.9 4.9 4.8 4.4 3.9 3.4 3.3 3.8 3.9 Peru 7.7 7.0 5.9 6.0 6.4 6.7 6.9 6.6 7.0 6.8

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Chile | Macroeconomic Outlook

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

  • 1.6

5.8 6.1 5.3 4.0 1.8 2.3 1.7 1.3 4.0 2.4 2.9

  • 2
  • 1

1 2 3 4 5 6 7 8 00 05 10 15 20

5.1 4.6 4.5 4.8 6.2 7.6 9.5 10.510.710.6 12.9 14.2 15.3 15.6 14.5 13.314.0 15.215.915.115.8

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 7.0 7.2

4 5 6 7 8 9 10 11 12 00 05 10 15 20

4.5 2.6 2.8 1.1 2.4 3.7 2.6 7.8 7.1

  • 1.4

3.0 4.4 1.5 3.0 4.6 4.4 2.7 2.3 2.6 2.8 2.9

  • 2

2 4 6 8 10 00 05 10 15 20 Inflation Policy Rate

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Chile | Macroeconomic Outlook

International Reserves | % of GDP Current Account Balance | % of GDP Central Government Fiscal Balance | % of GDP External Debt | % of GDP

60 19.420.2 21.920.8 16.1 13.812.6 9.8 13.214.2 12.6 17.1 15.614.915.7 16.215.9 13.913.4 13.9 13.2

5 10 15 20 25 00 05 10 15 20

  • 1.2-1.5
  • 0.8-1.1

2.6 1.5 4.6 4.1

  • 3.2

1.7 1.3

  • 1.7
  • 3.9-4.1
  • 1.7
  • 2.4
  • 1.6 -2.1
  • 3.1 -3.2-3.2
  • 5
  • 4
  • 3
  • 2
  • 1

1 2 3 4 5 00 05 10 15 20

  • 0.6-0.5
  • 1.2
  • 0.4

2.1 4.4 7.3 7.8 3.9

  • 4.4
  • 0.5

1.3 0.6

  • 0.6
  • 1.6-2.1-2.7-2.7
  • 1.6
  • 2.3-2.0
  • 6
  • 4
  • 2

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 36.438.2 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

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Colombia | Macroeconomic Outlook

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 2.6 2.6 2.8

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 6.3 6.7

1 2 3 4 5 6 7 8 9 00 05 10 15 20

13.3 15.015.6 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 10.310.0

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 3.8 3.2

5 10 15 00 05 10 15 20 Inflation Policy Rate

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Colombia | Macroeconomic Outlook

International Reserves | % of GDP Current Account Balance | % of GDP Central Government Fiscal Balance | % of GDP External Debt | % of GDP

  • 5.0-5.5 -5.7
  • 4.7
  • 4.9
  • 4.3
  • 3.7
  • 3.0
  • 2.3
  • 4.1-3.9
  • 2.8
  • 2.3-2.3 -2.4
  • 3.0
  • 4.0 -3.6
  • 3.1
  • 2.6
  • 2.3
  • 8
  • 6
  • 4
  • 2

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

62 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 15.314.6 16.6 16.7

2 4 6 8 10 12 14 16 18 01 06 11 16

0.9

  • 1.1 -1.3-1.0 -0.7
  • 1.3-1.8
  • 2.9-2.9
  • 2.0
  • 3.0-2.9-3.1-3.3
  • 5.2
  • 6.3
  • 4.3
  • 3.3
  • 3.9 -4.3 -4.1
  • 8
  • 6
  • 4
  • 2

2 00 05 10 15 20

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Itaú Corpbanca

Institutional Investors Presentation

August 2019