Presentation September 2016 CorpBanca Colombia | Nuestra Historia - - PowerPoint PPT Presentation

Institutional Presentation

September 2016

2011 2012

Acquisition in Colombia:

• Banco

Santander Colombia Acquisition in Colombia:

• Helm Bank

2013 2016

CorpBanca Colombia | Nuestra Historia

Source: Superintendencia & CorpBanca Colombia 1: Head Count 2: Numbers as of December 2015 3: Corporación Financiera Itaú BBA Colombia Figures in USD, constant basis @2879.95

The priority of CorpBanca has been to minimize the impact on its customers adjusting its value proposition, structure, processes and systems.

Footprint 2011:

• Assets: 2.7 Bn
• Loans: 1.8 Bn
• Deposits: 1.9 Bn
• HC1: 1367
• # Branches: 77
• #Branch network: 1
• #Core: 1

Footprint 20131:

• Assets: 4.3 Bn
• Loans: 2.5 Bn
• Deposits: 2.4 Bn
• HC1: 1509
• # Branches: 80
• # Branch network: 1
• #Core: 1

Footprint 2014:

• Assets: 9.7 Bn
• Loans: 6.4 Bn
• Deposits: 6.1 Bn
• HC1: 3232
• # Branches: 170
• # Branch network: 2
• #Core: 2

Footprint 20152:

• Assets: 10.9 Bn
• Loans: 7.4 Bn
• Deposits: 7.4 Bn
• HC1: 3234
• # Branches: 173
• # Branch network: 2
• #Core: 2

Footprint 20152 3:

• Assets: 0.2 Bn
• Loans: 0.1 Bn
• Deposits: 0.04 Bn
• HC1: 40
• # Branches: 1
• # Branch network: 0
• #Core: 1

CorpBanca Colombia | Our History

Source: CorpBanca Colombia 1. This value accumulates interests of Libor + 2.7% per year from August 4, 2015 until the closing date 2. Pending approval from regulators 3. Book Value of Itaú BBA Colombia = COP 319.2 MMM at the end of December 31st, 2015 (equivalent to US$102 millions at an exchange rate of COP3,135.17/US$1)

Offer to acquire the minority interest in CorpBanca Colombia

Structure in Colombia Itaú CorpBanca 100% Corpbanca Colombia

• CorpBanca offered to acquire 33.18% of the aggregate minority interest in

Corpbanca Colombia: ‐ Corpbanca and Helm Co. did not reach an agreement on the final proposed terms and conditions for the acquisition ‐ CorpGroup has agreed to sell its shares on the proposed transaction (12.36% of the total shares – aggregate offer for US$330MN1/2 )

• Itaú CorpBanca will integrate Itaú BBA Colombia in its structure 2/3

CorpGroup Helm Other Minoritaries Itaú BBA Colombia 66.28% 12.36% 20.82% 0.54% Financial Group in Colombia Corpbanca Colombia Helm Fiduciaria CorpBanca Investment Trust Helm Comisionista de Bolsa Helm Bank Panamá Helm Corredor de Seguros 94.0% 94.5% 95.0% 100%

CorpBanca Colombia | Shareholders Structure

Source: CorpBanca Colombia. Date November 1, 2016

Members President Members of the Board Rogeiro Carvalho Braga 1/ Gabriel Amado de Moura 1/ Juan Echeverría González Carmiña Ferro Iriarte Rafael Pardo Soto Roberto Brigard Holguín* Luis Fernando Martinez Lema* Mónica Aparicio Smith* Milton Maluhy Filho

(*) Independent Board Members 1/ Members pending possession before the Superintendencia Financiera

CorpBanca Colombia | Board of Directors

Source: CorpBanca Colombia:

Board of Directors CorpBanca Chief Executive Officer Audit Committee

Jaime Munita

Wholesale TBD Retail Claudia P. Vélez Treasury Derek Sassoon IT Lilian Rocío Barrios CRO Edson Silva CFO María Cristina Vandame Operations Liliana Suarez Legal & Compliance Dolly Murcia Human Resources Andrea Arizala Ctry Controller Juan I. Castro Compliance Carlos Díaz Communications, Institutional Relations and Sustainability Carolina Velasco

CorpBanca Colombia | Senior Management Structure

Source: CorpBanca Colombia, rating agencies, FitchRatings, INC

Moody´s FITCH S&P BBB- / Negative

Sep./2016

BBB / Negative

Feb./2016

BBB / Negative

Jul./2016

Baa2 / Stable

May./2016

Colombia Sovereign Banco CorpBanca Colombia

IDR (Issuer Default Rating)

Banco CorpBanca Colombia

Local, Long-Term

AAA / Stable

Apr./2016

AAA / Stable

Abr./2016

• Viability Rating drives IDR
• Negative trend explained by Colombia’s
• perating environment
• Adequate Capital ratios although lower than

international peers

• Good Asset Quality
• Limited Margins Underpins Profitability
• Stable, Moderately Concentrated Funding
• Uneventful Integration

Main Aspects of IDR

CorpBanca Colombia | Risk Ratings

CorpBanca Colombia has an Investment Grade rating of BBB-, and two local ratings of AAA in Colombia

Source: CorpBanca Colombia, 1:Numbers as of September/2016 2: Deposits include Checking and Savings accounts and Term Deposits 3: HeadCount includes Panamá

Bank #6 in Colombia, with 572 thousand clients and presence in 23 cities locally and one in Panama. Regional footprint & main indicators

Sep 20161 CorpBanca Colombia MS: 6.0% #Player: 6 TIER I: 9.66% Total capital ratio: 12.69% NPLs: 3.3% Net Inc. FY15: USD ~ 110.8 MM Net Inc. ‘3Q/16: USD ~ -0.61 MM

CorpBanca Colombia

20161

179 171 3,721 573 6,823 7,568 # ATMs # Branches # Head Count # Clients (thousand) Deposits USD MM Gross Loans USD MM

2 3

CorpBanca Colombia | Highlights

Source: Superintendencia & CorpBanca Colombia Numbers as of September/2016 1: Equity not included Figures in constant basis @2879.95

Inorganic Growth given merger between CorpBanca and Helm Detail Assets (USD Bn) Detail Liabilities (USD Bn)1

Before merger

Other Liabilities Bonds Deposits Deposits with Banks

11.1

Other Assets Net Loans & Leases Investments Cahs & Due from Funds

12’-16’ %CAGR 7.3 8.8 9.7 10.5 2012 2013 2014 2015 2016

3.2 4.3 9,1% 18,7% 64,8% 7,4%

6.5 7.3 8.6 9.6 2012 2013 2014 2015 2016 12’-16’ %CAGR

5,8% 7,7% 69,5% 17,0%

9.8

2.9 3.3

%CAGR 3 years 14,3% %∆ 16’-15’ 1,7% %CAGR 3 years 14,0% %∆ 16’-15’ 1,9%

11% 20% 9% 14% 19% 7% 38% 15% 18% 11%

CorpBanca Colombia | Assets and Liabilities growth and detail

Source: Superintendencia & CorpBanca Colombia Numbers as of September 2016 Figures in constant basis @ 2879.95

Commercial loans represent 66.8% of total loans. Total loans grew 2.8% in the past 12 months. Loans and Leases Mix (USD Bn)

76,0% 70,4% 51,9% 40,8% 66,8% 59,3% 56,9% 18,7% 25,9% 26,0% 34,9% 22,8% 25,8% 27,4% 4,6% 3,7% 22,0% 24,3% 10,4% 14,6% 12,8%

Peer 1 Peer 2 Peer 3 Peer 4 C Peers Sist.

Consumer Loans Commercial Loans Morgages Other Loans

% YoY Growth $17.3 Bn $8.9 Bn $19.2 Bn $13.4 Bn $7.6 Bn $58.9 Bn $130.0 Bn Peer CorpB

2.8% 10.0%

na 3.4% 17.4% 6.2%

• 0.5%

3.4% 15.0% 6.3%

CorpBanca Colombia | Gross Loans by Type Evolution

2.1 2.1 2.1 2.3 2.4 2.2 2.5 2.5 3.3 3.1 2.9 3.0 3.0 3.0 2.8 3.1 3.0 3.2

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 CorpBanca Total Banks

3.6 3.7 3.6 3.8 3.9 4.0 4.3 4.3 4.7 4.4 4.4 4.4 4.4 4.4 4.4 4.5 4.6 4.7

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

CorpBanca Total Banks

Loan Loss Provisions / Gross Loans (%) NPLs 30 days (%) Coverage (%)1 More conservative policies, than those of the average of banks, maintain permanently higher levels of LLP over PDL

Source: Superintendencia & CorpBanca Colombia, 1: Loan Loss Provisions / Past Due loans above 30 days

171 174 174 161 164 186 169 172 143 144 150 146 144 147 156 144 151 145

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 CorpBanca Total Banks

CorpBanca Colombia | Credit Risk Ratios

Source: Superintendencia & CorpBanca Colombia, Numbers as of September 2016 Figures in constant basis @ 2879.95 DDA: Checking Accounts

Liquidity convergence plan in place towards Itaú Unibanco standards. As a result higher share of Time Deposits than Industry. Funding Mix (USD Bn)

% YoY Growth 38,3% 39,9% 39,2% 39,3% 29,6% 39,1% 41,2% 17,5% 19,1% 8,0% 11,2% 7,5% 13,1% 12,1% 34,0% 30,4% 35,4% 43,8% 52,9% 36,4% 35,8% 10,1% 10,6% 17,4% 5,8% 10,0% 11,4% 10,9% Peer 1 Peer2 Peer 3 Peer 4 Co Peers Sist.

Checking Account Saving

TD’s

Bonds

$17.7Bn $7.6 Bn $14.7 Bn $7.9 Bn $18.4 Bn $58.6 Bn $126.5 Bn Peer CorpB

3.9% 9.1%

38.5% 30.9%

• 12.9%
• 25.9%

11.7% 37.5%

• 3.6%
• 0.9%

CorpBanca Colombia | Funding Detail and Evolution

Source: CorpBanca Colombia, 1: Funding: Savings and Checking accounts, Term Deposit and Bonds

CorpBanca sufficiently fulfills regulatory indicators and maintains a ratio of Net Loans over Funding below one. The bank is in the process of aligning limits and standards with those of Itaú Unibanco. Liquid Coverage Ratio (IRL) USD BN) Ratio between Loan Portfolio and Funding (%, USD MM)1

0.5 1 1.5 2 2.5

IRL 7 Days IRL 30 Days IRL 90 Days

CorpBanca Colombia | Liquidity

95.5% 95.5% 96.5% 99.0% 97.0% 89.2% 92.2% 90.3% 95.1%

6.3 6.4 6.8 7.0 7.1 7.1 7.1 7.2 7.2 6.6 6.7 7.0 7.1 7.3 7.9 7.7 8.0 7.6

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dic-15 Mar-16 Jun-16 Sep-16

Net Loans Deposits

1,151 252 900 279 3 1,182

Tier 1/Deductions Good will Tier 1 Subordinated Debt Other Regulatory Capital Tier 1 Consolidated Tier1+Tier2 Consolidated Non-consolidated

Consolidated regulatory capital ratio Jun.16 1 (%) Non-consolidated regulatory capital ratio Sep. 16 (USD MM, %)

9.7% 12.8%

Since 2012 CorpBanca has reinvested its net profits. It has a higher consolidated regulatory capital ratio than its peers.

Source: Superintendencia & CorpBanca Colombia 1: Source: Annual reports of each bank. Figures in constant basis @ 2879.95

8.50% 6.78% 9.82% 9.02% 7.40%

17.37% 19.87% 12.63% 12.85% 14.59%

Bancolombia Bogotá Occidente CorpBanca Davivienda

13.20% 11.80% 12.38% 12.40% 13.05%

CorpBanca Colombia | Capital Ratios

66.1% 63.2% 57.4% 55.9% 52.8% 48.1% 48.7% 50.3% 54.9% 76.1% 75.6% 78.7% 79.8% 79.6% 77.3% 80.2% 83.8% 95.5% 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q16 3Q16

Cost to Income Efficiency (%) Adjusted Efficiency (%)

Synergies and process have sustained the growth of the business and lowered the operational efficiency ratio.

Source: Superintendencia & CorpBanca Colombia Numbers as of September 2016. 2014 under accounting standards Colgaap, 2015 y 2016 under IFRS. Cost to Income Efficiency: Personnel and administrative expenses over gross financial margin – 12 months moving average - Adjusted Efficiency: Personnel, administrative and Loan Loss expenses over gross financial margin – 12 months moving average -

CorpBanca Colombia | Efficiency Ratios

10.33 8.94 7.84 5.94 2.73 16.55 1.25 1.06 0.93 0.7 0.32 2.21

Dec-14 Dec-15 Mar-16 Jun-16 Sep-16 ROE ROA

Decreasing Net Interest Margins, higher LLP and higher costs of liquidity explain the lower profitability of CorpBanca Colombia compared to its peers.

Source: Superintendencia & CorpBanca Colombia 1 NIM Loans Interest – Deposits Interest expenses / Gross Loans includes the cost of bonds rediscounted loans and foreign currency loans. Annualized monthly NIM 2 12 months net Income over 12 months average of equity and assets for Dec.14 Colgaap Accounting standards

RoE y RoA (%)2

Total Banks

(*)

5.87 5.50 5.01 5.41 5.23 5.33 5.28 5.31 5.32 5.10 4.97 4.70 4.73 4.26 4.43 4.02 4.08 4.07 3.59 3.44 3.46 3.98

dec-14 jan-15 feb-15 mar-15 apr-15 may-15 jun-15 jul-15 aug-15 sep-15 oct-15 nov-15 dec-15 jan-16 feb-16 mar-16 abr-16 may-16 jun-16 jul-16 aug-16 sep-16

NIM CenBank Rate

NIM (%)1 7.75 4.50

CorpBanca Colombia | Profitability Ratios

Itaú CorpBanca’s management, after a throughout evaluation, elected Helm Bank’s Phoenix platform as the core banking legacy system for Itaú CorpBanca’s operation in Colombia. This strategy will benefit from reduced implementation time and risk when compared to the previous existing strategy that was based on synergy benefits that do no longer apply in the current scenario.

IBS

CorpBanca

Chile Colombia Altair CorpBanca Colombia

(Former Santander Colombia)

Pre-Integration Post-Integration

Phoenix

Helm Bank

Chile Colombia

Pre-Integration Post-Integration Pre-Integration Post-Integration

Rationale: Scale synergies, know-how synergies Rationale: Reduced implementation time and risk IBS IBS

CorpBanca

Altamira

Itaú Chile

Altamira Altair CorpBanca Colombia

(Former Santander Colombia)

Phoenix

Helm Bank

Phoenix

Itaú CorpBanca legacy strategy CorpBanca legacy strategy

Benefits from synergies with Itaú Unibanco

CorpBanca Colombia | Core Banking Legacy System

Thank you

www.bancocorpbanca.com.co