Ita BBA | Andean Bank Day Ita Ita Corpbanca Corpbanca Disclaimers - - PowerPoint PPT Presentation
Ita BBA | Andean Bank Day Ita Ita Corpbanca Corpbanca Disclaimers - - PowerPoint PPT Presentation
June 30, 2020 Ita BBA | Andean Bank Day Ita Ita Corpbanca Corpbanca Disclaimers Information in this presentation is not an offer for sale of securities. This presentation has been prepared solely for informational purposes and is
Disclaimers
- Information in this presentation is not an offer for sale of securities. This presentation 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 expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this presentation 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 presentation.
- 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, 2019, 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 presentation 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 presentation.
- The Bank is an issuer in Chile of securities registered and regulated by the Commission for the Financial Market (Comisión para el Mercado Financiero or the "CMF"). Shares of our common stock are traded on
the Bolsa de Comercio de Santiago, or the Santiago Stock Exchange, and the Bolsa Electrónica de Chile, or Electronic Stock Exchange, which we jointly refer to as the "Chilean Stock Exchanges", under the symbol "ITAUCORP". The Bank’s American Depositary Shares are traded on the New York Stock Exchange under the symbol "ITCB". Accordingly, we are currently required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the CMF, and provide copies of such reports and notices to the Chilean Stock Exchanges and the SEC. All such reports are available at www.cmf.cl, www.sec.gov and in this presentation.
2
Evolution Evolution of the
- f the virus
virus
COVID-19
3
TImeline
1
March 3
156
March 16
3,404
April 2
246,963
June 21
First confirmed case of patient from Singapore 335 confirmed deaths in the country. Contingency measures are extended Chile enters phase 4, borders are closed 18 confirmed deceased in the
- country. Contingency measures
are extreme The peak of the epidemic in Chile is estimated to occur between June and July
31,721
May 12
4,502 confirmed deaths in the
- country. Contingency
measures are extended
Projections Projections
MACRO
GDP (%) CPI (%) Monetary Policy (%) FX
Base Fast V U
4
- 3,0
7,0
- 4,5
4,7
- 6,0
3,0
2017 2018 2019 2020 2021 2022 2023
2,0 2,5 2,6 2,9 3,0 3,7
2017 2018 2019 2020 2021 2022 2023
1,50 1,00 0,50 0,50
2017 2018 2019 2020 2021 2022 2023
760 720 800 770 880 850
2017 2018 2019 2020 2021 2022 2023
Itaú´s projections updated on June 9, 2020.
Projections Projections
MACRO
GDP (%) CPI (%) Monetary Policy (%) FX
Base Fast V U
5
- 3,7
4,7
- 4,7
4,2
- 6,2
3,3
2017 2018 2019 2020 2021 2022 2023
2,0 2,4 2,5 3,0 2,8 3,7
2017 2018 2019 2020 2021 2022 2023
2,50 2,50 2,00 2,00 1,50 1,50
2017 2018 2019 2020 2021 2022 2023
3,550 3,500 3.800 3.700 4,350 4,150
2017 2018 2019 2020 2021 2022 2023
Itaú´s projections updated on June 9, 2020.
Initia Initiatives tives taken taken by th by the e Chilean Chilean Governm Governmen ent
COVID-19
6
3 4 5 6
Use of collateral surplus for SMEs Impairment of assets Margin of derivatives Basel III
2
Credit renegotiation
Regulatory exception for mortgage loans to allow client's rescheduled installments not to be treated as renegotiations for provisioning purposes Allows exceptional extension of 18 months for the alienation of impaired assets received in lieu of payment
1
Government credit lines
Bank loans for companies affected by COVID-19 and annual sales up to one million UF, will have a preferential interest rate and will be state guaranteed Regulatory modification to compensate the value of derivatives with the amount of the margin paid to the counterparty, reducing the capital charge associated with derivative contracts Regulatory change in order to allow the use
- f excess of mortgages’ collaterals to
guarantee loans for SMEs Given current conditions, the CMF decided to postpone the implementation of the new regulations
Channel Channels s | | Branch Branch network network
COVID-19
63% 63%
121 121 branches open 65 in the Metropolitan Area 56 in the rest of country
30% 30%
57 57 branches open 24 in the Metropolitan Area 33 in the rest of country
78% 78%
150 150 branches open 89 in the Metropolitan Area 61 in the rest of country
100% 100% pre presenc sence e since since the the beg beginning inning of the
- f the cris
crisis is
March 1 April 15 May 25 % Network
7
People People | Home office | Home office
COVID-19
1,259 2,309 2,459
01-mar 16-mar 31-mar 15-abr 30-abr
VPNs VPNs VDIs VDIs Laptops Laptops
All All employ employees with ees with access access to to videoconfer videoconferences ences through through Teams Teams Deploy Deploying ing Office Office 365 365 cloud cloud solu solutio tions ns Capacity Capacity for for 10,00 10,000 remot 0 remote e accesses accesses through through VP VPN
413 700
01-mar 16-mar 31-mar 15-abr 30-abr
1-Mar 15-Mar 23-Apr
+1,200
200 2,070 2,420
01-mar 16-mar 31-mar 15-abr 30-abr
1-Mar 15-Mar 23-Apr 1-Mar 15-Mar 23-Apr
+700 +2,220 Infrastructure capable of supporting our operations in a remote environment ensuring business continuity
1,684
Employees in home office
8
Digital Chann Digital Channels els | | Client Client access access
COVID-19
Wide Wide range range
- f
- f services
services and and products products
to meet the needs of our clients in this period
41% 41%
Number Number of
- f login to
login to web & web & app app
(Mar-20 vs. Mar-19)
Availa Availability bility
- f our digit
- f our digital channels
al channels
99.5 99.5%
(Mar-20)
Co Compa panies ies Indi divi vidu duals ls
57% 57%
Number Number of
- f login to
login to web & web & app app
(Mar-20 vs. Mar-19)
Access to digital have Access to digital have increased increased significantly; despi significantly; despite te this this trend, trend, availabilit availability y of digital
- f digital
channels channels is at highes is at highest t level ever level ever
9
Clients Clients | | Digital ch Digital channels annels – Client Client transacti transactions
- ns
COVID-19
Mar-Apr 2020
167 167
Mar-Apr 2019
100 100 Payments Payments Co Compa panies ies Indi divi vidu duals ls
Mar-Apr 2020
161 161
Mar-Apr 2019
100 100 Time De Time Deposits posits
Mar-Apr 2020
113 113
Mar-Apr 2019
100 100 Mutual Mutual Funds Funds 133 133 100 100 Transfers Transfers and Payment and Payments 216 216 100 100 Time De Time Deposits posits 200 200 100 100 Loa Loans ns
Use of digital channels gets more significant with end-to-end transactions, gaining relevance for Individuals and Companies
10 10
Mar-Apr 2020 Mar-Apr 2019 Mar-Apr 2020 Mar-Apr 2019 Mar-Apr 2020 Mar-Apr 2019
Clients Clients | | Digital co Digital communication mmunication
COVID-19
1 2
Launch of “Visión Visión de Líderes de Líderes" " Comm Communication unication
Launch of the “Vision of leaders“- Live streaming with the leaders of the most important sectors of the economy We have held over 50 sessions:
- Benito Baranda
- Andrés Velasco & Ricardo Marino
- Raphael Bergoeing
- Carolina Strobell & Tatiana Pimienta
- Juan Pablo Hernández
- Sergio Purcell
- José Luis Daza
- Daniel Apolo
- José de Gregorio
- Alejandro Ferreiro
32,173 Total Views
11 11
Clients Clients | | Credit Credit deferral deferral campaign campaign
COVID-19
Deferral of next three installments of non
- verdue contracts, with a
preferential rate through a new loan with 60 installments and the first payment in 6 months
Consumer and Consumer and Commercial Commercial Loans Loans Credit Credit Cards Cards Mortgage Mortgage Loans Loans
Deferral of next three installments of non
- verdue contracts, with a
preferential rate Our clients, with non
- verdue contracts, can
choose zero minimum payment in April
|
20-25% 42% 50%
% Client acceptance
39%
% Client acceptance Client acceptance rate
12 12
42%
Clients Clients | | We We want want to be to be part part of the
- f the solution
solution
COVID-19
Itaú Corpbanca joins the Emergency Private Fund for Health in Chile with a contribution to the “Confederación de la Producción y del Comercio” to to collaborate collaborate with with the the country country in this in this fight ag fight against ainst COVID COVID-19 19 Itaú Corpbanca tripled the value of donations made by employees, totaling US$ US$ 810,0 810,000 00 Itaú Corpbanca supported Chilean female entrepreneurs with US US$ $ 41,000 41,000 to make masks for staff working with vulnerable children
Clients
US$ 570,000
Employees
US$ 60,000
Bank
US$ 180,000
US$ 1.9 million
Wo World rld Givin Giving g Inde Index x (%) (%)
28% 28% 35% 35% 37% 37%
0% 20% 40% 60%
13 13
Governm Governmen ent t Actions Actions | | Latest Latest Initia Initiatives tives
COVID-19
CMF CMF Ministry Ministry of Fina
- f Finance
nce Central Central Bank Bank of Chile
- f Chile
Bank financing Bank financing facil facility ity (FCIC) (FCIC) conditional conditional to to ban banks ks loan growth loan growth FCIC FCIC for for 6 months 6 months, up to , up to 4-year year tenor tenor, init , initial ial amount up amount up to to 3% of 3% of the the comme commercial rcial and and consum consumer er portfol portfolios of ios of banks, at banks, at a a preferent preferential ial interest interest rate rate Basel Basel III III roll roll-in in process that process that would would start start in Dece in December mber 20 2020 20 w was as postponed postponed for 1 year for 1 year The Cou The Council of ncil of the the CMF CMF has has post postpon poned ed the the commencement commencement date date for for the the implementat implementation ion of
- f
Basel Basel III III regulations regulations Working capital Working capital lines lines for for companies companies with with net net sales sales up to UF up to UF 1 1 milli million
- n accordin
according to g to the the credit credit risk risk policies policies o
- f
f each each instit institutio ution, n, for a for a maximu maximum m amou amount nt of up to
- f up to 3
3 mo months nths of average
- f average sales
sales and and 75 75% % guaranteed guaranteed by the g by the government
- vernment
11 11 Initiatives targeting
provisions and capital
7 Initiatives for liquidity
injection to the economy COVID-19 credit lines
14 14
Governm Governmen ent t Actions Actions | | COVID COVID-19 19 Line Line – First First Tender Tender Results Results
COVID-19
Tramo 1 201 215 135 52 49 49 711 2 100 215 43 46 43 126 588 3 63 215 126 29 77 215 754 4 29 215 29 29 23 77 422 Total 393 861 333 155 192 468 2.476
65% 35%
Unmet Demand Demand Met
Itaú Itaú Demand Demand
US US$ 5 547 7 mil illi lion
- n
Total Total Demand Demand
US US$ 2. 2.9 9 bi bill llio ion
Total Total Demand Demand Met Met
US US$ 1 1.0 .0 bi bill llio ion
Itaú Itaú Demand Demand Met Met
US US$ 1 189 89 m mil illi lion
- n
Total Syste Total System m Demand Demand
Demand by bank and by tranche (US$ mn) 2,476
Tranche 235 74 34 117 460 252 252 252 252 1,007 158 148 34 50 390 61 34 34 54 183 57 90 27 50 225 57 252 90 148 547 833 883 494 689 2,899
15 15
Clients Clients | | Fogape Fogape COVID COVID – 19 Credit 19 Credit
COVID-19
16 16
Fogape Covid-19| Amounts Approved vs. Tendered
Sales tranche (CLP)
Amount approved Less than 712 M Between 712 M to 2,850 M Between 2,850 M to 17,100 M Between 17,100 M to 28,500 M
Total
91,151 138,777 206,889 33,703
470,520
Amount granted 25,995 56,983 88,473 24,111
195,562
% of use (*) 46% 36% 29% 37%
34%
(*) The amount granted is weighted by the percentage of coverage. UF 28,500
Figures in CLP Bi / Accumulated as of May 25, 2020
% Itaú 3.4% 8.8% 12.9% 15.4%
8.6%
Final Final remarks remarks | | Adaptabilit Adaptability y and and resilience resilience
COVID-19
17 17