Presentation June 2016 CORPBANCA COLOMBIA BANKS HISTORY Merger Ita - - PowerPoint PPT Presentation

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Presentation June 2016 CORPBANCA COLOMBIA BANKS HISTORY Merger Ita - - PowerPoint PPT Presentation

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Institutional Presentation June 2016 CORPBANCA COLOMBIA BANKS HISTORY Merger Ita Chile and Corpbanca Chile (main shareholder of 2016 Corpbanca Colombia). April 1 st 2016 Corpbanca Colombia acquired Helm Bank and its subsidiaries. 2013

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Institutional Presentation

June 2016

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CORPBANCA COLOMBIA │BANK’S HISTORY

Banco Alemán Antioqueño is established by Colombian and German businessmen Changed its name to Banco Comercial Antioqueño and merged with Banco Santander de Colombia (Blue) under the name “Bancoquia” The Spanish group Santander acquired the bank and changed its name to Banco Santander Colombia Grupo CorpBanca Chile acquired the bank Corpbanca Colombia acquired Helm Bank and its subsidiaries. Merger June 1st 2014 Merger Itaú Chile and Corpbanca Chile (main shareholder of Corpbanca Colombia). April 1st 2016

2013 1997 1942 1912 2012 2016

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CORPBANCA COLOMBIA │ SHAREHOLDER’S COMPOSITION

Percentage

CorpBanca Colombia Itaú CorpBanca

66.28%

Helm1/ Corpgroup2/

20.82% 12.36%

As of April 2016 1/ Through Helm LLC 19.44% and Kresge Stock Holding Company Inc. 1.38% 2/ Through different companies. CG Financial Colombia S.A.S. 8.28%, Corpgroup Interhold SPA 2.09%, Corp Group Banking S.A. 1.99%, CG Investment Colombia S.A. 0.00%

Minor Shareholders

0.54%

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SLIDE 4

MERGER CORPBANCA - ITAÚ CHILE │TRANSACTION STRUCTURE

Percentage

Merger

  • Merger of Itaú Chile and CorpBanca
  • Resulting property structure:

― Itaú Unibanco: 33.58% ― CorpGroup and subsidiaries:

33.13%

― Minor Shareholders: 33.29%

  • Itaú Unibanco will sign a

shareholders agreement with CorpGroup to determine corporate governance issues of the merged bank

Source: CorpBanca Chile 100.00%

HoldCo A Minor Shareholders SAGA Ltda. Itaú CorpBanca CorpBanca Colombia Colombia’s Minor Shareholders

3.65% 33.58% 33.29% [66.28]%* [33.72]%* 100.00%

Itaú Unibanco CorpGroup and Susidiaries

100.00%

Corporación Financiera Itaú (Itaú Colombia) CorpGroup Banking

100.00% 29.48%

  • Itaú CorpBanca will buy 12.36% of ownership of Corpgroup

Shareholders Agreement

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MERGER CORPBANCA - ITAÚ CHILE │PROGRESS

Jan 29 2014 April 29 2015 Jun 2 2015

Signature of a Strategic Association Agreement between CorpBanca and Itaú Chile1/ Delivery of Expert Report Exchange Ratio Amendment of Transaction Agreement CorpBanca’s Board of Directors recommend the

  • peration.

Apr 1 2016 Merger Itaú CorpBanca. Brand: Banco Itaú or Itaú Approval of Brasil, Panamá and Colombia. Waiver IFC 29 ene 2017 Chile’s SBIF Approval Jun 30 2015 Jun 26 2015 CorpBanca’s Extraordinary Shareholders

  • Meeting. Approval

with 88.39% votes. Approval of Itaú Chile Extraordinary Shareholders Meeting Sep 4 2015 Maximum date to sell CorpGroup’s stake in en CorpBanca Colombia (12.36%)2/

Source: Relevant Information, IRO Chile 1/ CorpBanca Chile announces that Inversiones CorpGroup Interhold Limitada, Inversiones Saga Limitada, Itaú Unibanco Holding S.A. and Banco Itaú Chile, subscribed a Transaction Agreement, in which the parties will perform a strategic alliance of its operations in Chile y Colombia, subject to the authorizations of the regulators (Chile, Colombia, Panamá and Brasil), and the approval of CorpBanca’s and Banco Itaú Chile’s shareholders. 2/ Banco CorpBanca Colombia will not distribute dividends until the closing date of the sale

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SLIDE 6

First 100 days

Merger Planning

Monitoring Period

  • Aug. 20

2013 2017 Banks’ Legal Merger

  • Jun. 1 2014

Brokerage Firms Merger

  • Sep. 1 2014

Monitoring Period

  • Mar. 1 2014
  • Nov. 29

2013

Implementation– Legal Merger Banks Implementation– Merger Brokerage Firms Operational and IT Merger

Time

Finished On going

 The legal merger implies the use of a single tax ID (NIT) for both companies (CorpBanca’s NIT)  The brands and branch network will continue to operate consistent with past practice

CORPBANCA COLOMBIA │MERGER CORPBANCA – HELM, TWO STAGES

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ITAÚ │MAIN NUMBERS

  • International Bank with more than 85 years of history. Presence

in over 20 countries in America, Europe and Asia

  • USD $39.9 billion market cap
  • 90,320 employees
  • 4,985 branches and CSBs
  • 26,412 ATMs
  • Net Income USD $6 billion in 20151/
  • Assets USD $343 billion in December 20151/
  • Listed in Sao Paulo (BM&FBovespa), Buenos Aires and NYSE
  • Part of Dow Jones Sustainability Index since its beginning in

1999

  • Most valuable brand in Brasil, USD $8.5 billion (Interbrand 2015)
  • Vision: To be the leading bank in sustainable performance and

customer satisfaction

Source: Institutional Presentation Itaú. Itáú Unibanco Holding, December 2015 1/ Exchange Rate 3.9609 BRL / USD December 31st 2015

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CORPBANCA COLOMBIA │ FINANCIAL GROUP

Percentage

Helm Fiduciaria CorpBanca Investment Trust Helm Comisionista de Bolsa Helm Bank [Panamá] Helm Casa de Valores [Panamá] Helm Corredor de Seguros

Related Company

94.0% 94.5% 95.0% 100.0% 100.0%

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SLIDE 9

1/ Cities with Coprbanca presence Armenia, Barrancabermeja, Barranquilla, Bogotá, Bucaramanga, Cali, Cartagena, Caucasia, Cúcuta, Ibagué, Manizales, Medellín, Montería, Pasto, Pereira, Popayán, Rionegro, Santa Marta, Tunja, Villavicencio. Does not include specliazed Leasing and SMEs branches. 2/ As of June 2016. 3/ As of June 2016. Subsidiaries employees included. Bank employees 3,200.

CORPBANCA COLOMBIA │ BRANCH NETWORK 164 branches in the 20 main cities of Colombia1/ 180 ATMs 577 thousand clients2/ 3,664 employees3/

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Clients June 2016

577,299

Companies Private Banking Individuals

8.5% 1.1% 90.4% Small Medium

Total Bank

49,047

Total Companies

2.0% 1.1% Corporate Institutional Other 2.9% 84.2% 9.6%

CORPBANCA COLOMBIA│CLIENTS BY SEGMENT

Number, percentage

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FITCH RATINGS DE COLOMBIA

DEUDA A LARGO PLAZO DEUDA A CORTO PLAZO

AAA(col) perspectiva estable F1+ (col)

BRC S&P

DEUDA A LARGO PLAZO DEUDA A CORTO PLAZO

AAA Creditwatch Negativo BRC1+

LONG-TERM DEBT

AAA

SHORT-TERM DEBT

BRC 1+

FITCH RATINGS DE COLOMBIA

LONG-TERM DEBT

AAA (col) Stable Outlook

SHORT-TERM DEBT

F1+ (col)

CorpBanca overcomes his first operation year after the merged without traumatism The Chilean merger could bring additional benefits and adoption of best practices Good quality of loan portfolio. Adequate risk controls, consistent with best practices and requirement of his head office. Adequate capital base. The equity injections made and the commitment not to payment dividends in the first years of operation have been positive to the operation. The merger process between Helm and Corpbanca has progressed according with established schedules. Best performance in quality of loan portfolio compared to the average of banks. Robust structure for risk management in accordance with best practices. Adequate bank's stockholders’ equity position ass a result of retained profits and moderated increase of

  • assets. Good credit profile of Itaú Corpbanca, with

strategic importance of Colombia.

CORPBANCA COLOMBIA │ RISK RATINGS1/

1/ BRC’s Rating issued April 2016 and Fitch’s Rating issued April 2016

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CORPBANCA COLOMBIA │ CORPORATE GOVERNANCE

* Miembros independientes. Junta Directiva reelegida en Asamblea de Marzo de 2016

Board of Directors - Members 1 Roberto Brigard Holguín* 2 Luis Fernando Martínez Lema* 3 Juan Carlos García Cañizares* 4 Santiago Jaramillo 5 Juan Echeverría González 6 Milton Maluhy Filho 7 Carmiña Ferro Iriarte 8 Mónica Aparicio Smith* 9 Rafael Pardo Soto

* Independent Members. Board reelected on Shareholders Meeting March 2016

*44% independent Board Members, in accordance with the current laws

  • Monthly Audit Committee with 3 Board Members, 2

independent

  • Rules of Procedure for the Board of Directors
  • Rules of Procedure for Shareholder’s Meetings
  • Corporate Governance Committee
  • Governance Code
  • Annual Corporate Governance Report
  • Bylaws and related information published in

CorpBanca’s Web Page

  • Convergence towards new “Código País”
  • guidelines. e.g. CRO Chief Risk Officer
  • Executive Credit Committee with Board members
  • f Colombia and Chile
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CORPBANCA COLOMBIA │ CUSTOMER SERVICE SATISFACTION

Helm Bank Davivienda Banco de Occidente BCSC Banco de Bogotá CorpBanca Sector BBVA Bancolombia Citibank AV Villas Popular Colpatria 79.0 75.0 75.0 74.0 74.0 74.0 73.0 73.0 73.0 73.0 71.0 70.0 70.0

Helm’s and Corpbanca’s network branches occupy 1st and 6th place at the Colombian banks ranking in customer service and quality Customer Index Value (CIV) methodology that

  • bjectively and

independently measures the client’s experience. Produces the only customer satisfaction index in the country. Banking sector Satisfaction Index (CIV) 2015

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CORPBANCA COLOMBIA │ COMMITMENTS AND BEST PRACTICES ON SUSTAINABILITY

  • SEMS (Social and Environmental

Management System)

  • Human Rights
  • Labor Rights
  • Anticorruption
  • Environment
  • Liders of the Financial Institutions

Network

  • Environmental and Social Risks
  • Green Products
  • Eco-efficiency
  • Environmental and Social Risks
  • Green Products
  • Eco-efficiency
  • Stakeholders Dialogues
  • 100 development ratios for the financial

sector

  • Guides for policies and processes
  • Transparency Report
  • Carbon Footprint certificate

by ICONTEC following ISO14064 and GHG Protocol.

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SLIDE 15

41 28 24 17 11 11 9 8 7 7 4 4 4 1 1 1 1

ASSETS 6.3%

Source: Superfinanciera; Analysis: Banco Corpbanca. Exchange rate 30/06/2016: $ 2,916.15

CorpBanca’s Market Share

COLOMBIAN BANKING SECTOR│RANKING MAY 2016

USD Billions

56 36 36 28 17 16 12 11 10 9 7 6 6 2 2 1 1 1 1

LOANS + DEPOSITS 6.3% CorpBanca’s Market Share

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SLIDE 16

28 19 18 14 9 8 6 6 6 5 4 4 3 1 1

DEPOSITS 6.6% CorpBanca’s Market Share

COLOMBIAN BANKING SECTOR│RANKING MAY 2016

USD Billions

Source: Superfinanciera; Analysis: Banco Corpbanca. Exchange rate 30/06/2016: $ 2,916.15 28 18 17 13 9 7 7 5 4 3 3 3 3 1 1 1 1

GROSS LOANS 5.9% CorpBanca’s Market Share

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CORPBANCA COLOMBIA │COMPOSICIÓN ACTIVOS

COP Billones, porcentaje Net Loans Investments and Derivatives Cash and cash equivalents1/

Growth Jun.15 – Jun.16

6% 20% 14% 3%

1/ Includes Repo And Interbank funds.

2%

Other

CORPBANCA COLOMBIA│ASSETS COMPOSITION

USD Billion, percentage

Analysis: Banco Corpbanca. Exchange rate 31/03/2016: $ 2,916.15. IFRS implemented as of January 2015

6.9 7.0 7.1 1.6 2.2 1.9

0.9 0.9 0.9 0.7 0.7 0.8

Jun-15 Dic-15 Jun- 16 10.15 10.80 Total Assets 10.73

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Gross Loans Deposits and Bonds

67% 23% 10% 42% 39% 11% 7%

CorpBanca

Jun- 16

Term Deposits Ahorros Checking Acc. Bonds Comercial Consumer Mortgages

Total Banks

May- 16

67% 23% 10% 49% 36% 8% 8%

CorpBanca

Jun- 15

Term Deposits Savings Checking Acc. Bonds Commercial Consumer Mortgages Savings Commercial 58% 27% 13% 3% 32% 44% 13% 11% Checking Acc. Bonds Term Deposits Savings Commercial Consumer Mortgages Microloans

COLOMBIAN BANKING SECTOR│LOAN AND DEPOSITS COMPOSITION

Percentage

Source: Superfinanciera; CorpBanca’s Analysis

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Commerce 17,3% Manufacturing Industries 14,4% Finance and insurance 10,9% Construction 10,2% Real state agencies 8,4% Public services 6,7% Transportation 4,8% Professional, scientific and technical 4,8% Health 3,5% Mines and quarries 3,4% Other 3,4% Housing and food services 2,9% Management services 2,7% Other service activities 2,7% Information and communications 2,0% Farming 1,8%

CORPBANCA COLOMBIA│CARTERA COMERCIAL POR SECTOR

Porcentaje, COP Billones Commercial Loans March 2016 $4.90 billions

CORPBANCA COLOMBIA│COMMERCIAL LOANS BY ECONOMIC SECTOR

Percentage, USD Billions

Source: Banco Corpbanca. Exchange rate 30/06/2016: $ 2,916.15

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Payroll Loans 50,0% Free- purpose 24,3% Credit Card 12,1% Revolving 8,2% Vehicles 4,2% Other 1,3%

Consumer Loan Marzo 2016 $1.69 billons

CORPBANCA COLOMBIA│CONSUMER LOANS BY PRODUCT

Percentage, USD Billions

Source: Superfinanciera; Banco Corpbanca’s Analysis. Loan Gross Amount includes Consumer Leasing. Exchange rate 30/06/2016: $ 2,916.15

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100% 110% 120% 130% 140% 150% 160% 170% 180% 190% 200% jun-13 jul-13 ago-13 sep-13

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nov-13 dic-13 ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14 ago-14 sep-14

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nov-14 dic-14 ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15

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nov-15 dic-15 ene-16 feb-16 mar-16 abr-16 may-16 jun-16 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% jun-13 jul-13 ago-13 sep-13

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nov-13 dic-13 ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14 ago-14 sep-14

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nov-14 dic-14 ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15

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nov-15 dic-15 ene-16 feb-16 mar-16 abr-16 may-16 jun-16

SISTEMA BANCARIO│EVOLUCIÓN INDICADORES DE RIESGO

Porcentaje

CorpBanca 2.53% Total Banks 3.17%

NPLs Non Performing Loans above 30 days over Gross Loans, percentage

CorpBanca 171.53 % Total Banks 144.26%

Coverage Loan Loss Allowance over Non Performing Loans above 30 days, percentage

Source: Superfinanciera; CorpBanca’s Analysis Numbers between June 2013 and May. 2014 are an estimate of the combined banks.

COLOMBIAN BANKING SECTOR │RISK RATIOS

Percentage

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SLIDE 22

SISTEMA BANCARIO│UTILIDADES Mayo 2016

COP Miles de Millones

Numbers under IFRS Colombia. Source: Superfinanciera; Corpbanca’s Analysis. Exchange rate 30/06/2016: $ 2,916.15 462 261 213 88 86 77 59 52 38 31 29 29 28 7 7 6 4 4 3 3 1 1

  • 1
  • 3

Net Income

COLOMBIAN BANKING SECTOR │RISK RATIOS

Percentage

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SISTEMA BANCARIO│RENTABILIDAD ROA Y ROE

Porcentaje ROA CorpBanca % ROE CorpBanca

%

Total Banks

Accounting ROA Adjusted ROA 1/ Accounting ROE Adjusted ROE 1/ 1.26% 1.06% 0.70% 1.31%

Jun-15 Dec-15

2.21% 2.02% 10.84% 8.94% 5.94% 16.54% 15.14% 0.77%

Jun-16

1.90% 6.56% 14.26%

Jun-15 Jun-16 Dec-15

1.13% 9.59% 11.41%

CORPBANCA COLOMBIA│PROFITABILITY RATIOS

Percentage

Source: Superfinanciera; Corpbanca’s Analysis. Number for the average of banks as of May 2016 1/ W/o goodwill amortization ROA: 12-month moving average profits / 12-month moving average assets. ROE: 12-month moving average profits / 12-month moving average equity.

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BANCO CORPBANCA│SOLVENCIA INDIVIDUAL

Porcentaje

1/ Total technical Equitiy / (RWA + VaR * 100/9). 2/ Goodwill is deducted from Tier 1. Tier 1 solvency ratio w/o goodwill deduction would be 11.95% and total solvency 15.46%

9.23% 8.54% 9.34% 10.06%

Total Capital Ratio Tier 1 Ratio

CorpBanca June 2016 1/ Total Banks May 2016

13.67% 12.85%

CorpBanca December 2015

16.04%

CorpBanca June 2015

12.97%

CORPBANCA COLOMBIA│NON-CONSOLIDATED CAPITAL ADEQUACY RATIO1/

Percentage

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MAIN BANKS IN COLOMBIA│CAPITAL ADEQUACY RATIO DECEMBER 20151/

Percentage

Source: Notes to the consolidated Financial Statements and Annual Reports 1/ Six largest banks in terms of Assets. Order high to low consolidated total solvency 2/ BBVA’s consolidated total solvency not available 7,50% 8.08% 6.92% 9.61% 6.50%

15.76% 12.97% 14.20% 11.30% 20.69% 13.51% Bancolombia CorpBanca Davivienda Occidente Bogotá BBVA

Consolidated Tier 1 ratio Consolidated Total Capital ratio Non-consolidated capital ratio 12.46% 10.65% 11.70% 10.97% 12.18%

2/

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Thank you

www.bancocorpbanca.com.co