Itaú Corpbanca
NDRS Presentation New York and Boston
April 10 ‒11, 2019
NDRS Presentation New York and Boston Ita Corpbanca April 10 11, - - PowerPoint PPT Presentation
NDRS Presentation New York and Boston Ita Corpbanca April 10 11, 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
April 10 ‒11, 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
Global Macroeconomic Backdrop Our Bank Strategic Fronts
Perspectives for 2019
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
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
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 4.5 4.5
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 … 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
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Global Macroeconomic Backdrop Our Bank Strategic Fronts
Perspectives for 2019
We are key part of Itaú Unibanco’s Internationalization Strategy
Regional footprint & main indicators 2 3
10.2% 2 4.9% 4
Market Share
US$ 24.2 bn US$ 6.8 bn
Loans 2
US$ 31.0 bn
5,685 5 3,494 6
Headcount 2
9,179 202 161
Branches 2
363
US$ 32.8 bn US$ 9.6 bn
Assets 2
US$ 42.4 bn US$ 291 mn US$ 11 mn
Recurring Net Income 2018
US$ 302 mn
13.3% 1.9%
Recurring RoTAE 2018 7
11.0%
1 Ranking for assets and loans consider Grupo Aval as the combination of Banco de Bogotá, Occidente, Popular, AV Villas; 2 Consolidated information as of December 31, 2018; 3 Figures were converted at an exchange rate of 694.73 CLP/USD; 4 Consolidated
information as of November 30, 2018; 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.
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Consolidated
Ch$ 209.6 bn
Recurring Net Income Recurring RoTE Loans NPL 90 days Net Interest Income Net Fees and Comissions Cost of Credit Operating Expenses
Chile
Ch$ 202.0 bn ^143.4%
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
61.5 38.8 209.6
Consolidated
11.0%
Chile
13.3%
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
3.4 2.2 11.0
Consolidated
Ch$ 21.5 tn
Chile
Ch$ 16.8 tn
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
20.4 21.0 21.5
Consolidated
2.1%
0.2p.p.
Chile
1.8%
0.3p.p.
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
2.3 1.7 2.1
Consolidated
Ch$ 847.0 bn ^14.2%
Chile
Ch$ 575.5 bn ^10.3%
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
215.3 197.0 226.5
Consolidated
Ch$ 186.1
Chile
Ch$ 154.1
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
43.4 45.8 49.7
Consolidated
Ch$ 231.3 bn
38.9%
Chile
Ch$ 133.0 bn
44.4%
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
378.7 375.0 231.3
Consolidated
Ch$ 621.8 bn ^ 0.3%
Chile
Ch$ 428.0 bn ^ 2.2%
2018 vs. 2017 2018 vs. 2017 2016 2017 2018
620.0 579.1 621.8
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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
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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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Global Macroeconomic Backdrop Our Bank Strategic Fronts
Perspectives for 2019
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 Dec 2018, Ch$ Bn
13.4 7.05 13.8 6.95 Total 6.1 6.5 5.9 6.0
Itaú Corpbanca Average Top 3
Interest Rates
26,580
Consumer Commercial
15,848 27,463
Mortgage
29,233
∆ 10 bp 32 bp por mix
Peer-A Peer-B Peer-C
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
7.05 7.27 6.95 6.76
55.2% 51.2% 64.7% 29.0% 32.8% 24.3% 15.8% 16.0% 11.0% 65.8% 23.8% 10.4%
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Portfolio Mix (%)
67.5% 22.8% 9.7%
2017 Retail: 32.5% Retail: 33.3% Market Share (Dec.2018)
Commercial Mortgage Consumer
Total Loans
Share
12- months
+89 bp
66.7% 22.9% 10.4%
2018
14
13,4%
9,8%
0% 5% 10% 15% 20% 25%
dic-14 jun-15 dic-15 jun-16 dic-16 jun-17 dic-17 jun-18 dic-18
10,2%
5,5%
0% 2% 4% 6% 8% 10% 12% 14% 16%
dic-14 jun-15 dic-15 jun-16 dic-16 jun-17 dic-17 jun-18 dic-18
10,7%
4,2%
0% 5% 10% 15%
dic-14 jun-15 dic-15 jun-16 dic-16 jun-17 dic-17 jun-18 dic-18
9,4%
6,0%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
dic-14 jun-15 dic-15 jun-16 dic-16 jun-17 dic-17 jun-18 dic-18
Total Mortgage Commercial Consumer
15 dec-14 dec-15 dec-16 dec-17 dec-18 dec-14 dec-15 dec-16 dec-17 dec-18 dec-14 dec-15 dec-16 dec-15 dec-16 dec-17 dec-18 dec-18 dec-14 dec-17
in billion of Chilean pesos
Dec-18 Legal Day One
Var ($) CAGR (%) CAGR (%) Financial System
Commercial (core) 10,975 9,803
1,172 4.2% 6.3%
Commercial (non-core) 225 1,916
(1,691)
n.a.
Mortgage 3,853 3,289
563 5.9% 9.6%
Consumer 1,751 1,314
437 11.0% 9.1%
Total 16,804 16,323
481 1.1% 7.1% Total (ex non-core portfolio) 16,579 14,406 2,173 5.2% 9,803 10,975 1,916 225 3,289 3,853 1,314 1,751 16,323 16,804 Legal Day One Dec-18 Commercial (core) Commercial (non-core) Mortgage Consumer
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Total Funding Breakdown
Interest Rates
31,237 19,753
Debt Issued
34,564
Others1
100%
34,986
Checking accounts and deposits
2.8 2.3 3.2 3.0 Total 0.3 0.3 4.9 5.4
Itaú Corpbanca
1.1 1.1
Average Top 3 ∆ 76 bp 51 bp por mix
Peer-A Peer-B Peer-C
Top 3 rates w/ current mix Current rate w/ top 3 mix
Non-interest bearing liabilities are the main reason for the gap when compared to the 3 players
Time Deposits
1 Others: Repurchases contracts, financial derivatives, bank obligations, letters of credit, other financial obligations, taxes, differed taxes, provisions, other liabilities.
LTM Dec 2018, Ch$ Bn Top 3 Current 2.7 3.0 2.3 2.5
14.6% 17.0% 19.1% 20.9% 22.6% 22.9% 16.1% 27.1% 33.7% 36.6% 34.5% 39.8% 29.1% 23.6% 30.3% 12.2%
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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
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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
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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.
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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
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Advanced work methodologies and tools Back-end to front-end digitalization of opening of digital accounts process
more CLIENTS since Jan’17
# sales of retail installment loans
91% 23%
9% 77%
Apr'16 Dec'18 Sales through traditional channels Sales through Digital Channels (Internet + App)
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DEC 2014
MAR 2015
MAR 2016
JUN 2017
DEC 2017
12-months installment loans growth: Itau vs. Financial System
MAR 2018 DEC 2018
JUN 2018
5.8% 10.4% 1.7% 14.9%
abr-16 jun-16 sep-16 dic-16 mar-17 jun-17 sep-17 dic-17 mar-18 jun-18 sep-18 dic-18
Financial System Itaú CorpBanca
SEP 2018
25
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.
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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$, as of February 28th, 2019 As presented in our April 21st, 2016 Investor Update Conference Call to discuss different topics of the merger.
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Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
Regulatory capital ratio evolution (previous LGB) Estimated1 BIS III capital ratio (new LGB)
Tier I Tier II
1 – Reflects our best estimate for the impact of the implementation of the new Banking Law in Chile. The actual impact depends on definitions still to be set by the Comision para el Mercado Financiero (CMF).
14.4% 14.7% 11 bp 6 bp 6 bp 4 bp
Sep.18 Capital Basico Subordinated Bonds RWA Other Dec.18
10.2% 7.8%
+ / -
Regulatory Capital Ratio (Dec.18) Other Intangible Assets / Net Deferred Taxes Net effect of changes in RWA Estimated Fully Loaded BIS III Capital
4.5% 3.9%
14.7% 11.1%
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Growth
Digital Transformation Client Centricity Efficiency
Capital Generation
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
40.9 (39.6) (21.5) 7.6
2015 2016 2017 2018
Managerial Net Income NIM Cost of Credit Efficiency Ratio
4.0% 3.3% 3.7% 4.4%
2015 2016 2017 2018 45.2% 56.5% 62.4% 60.1% 2015 2016 2017 2018 2.3% 2.9% 2.7% 2.0% 2015 2016 2017 2018 In Ch$ Billion
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Global Macroeconomic Backdrop Our Bank Strategic Fronts
Perspectives for 2019
2016
GDP Loan Growth Inflation Interest Rate
2017 2018 2019 2016 2017 2018 2019
1.3% 1.5% 4.0% 3.2% 2.1% 1.4% 2.7% 3.3% 5.6% 4.5% 10.2% 8-10% 12.2% 6.1% 5.8% 8-10% 2.7% 2.3% 2.6% 2.6% 5.8% 4.1% 3.2% 3.0% 3.50% 2.50% 2.75% 3.25% 7.50 4.75% 4.25% 4.50%
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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
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April 10 ‒11, 2019