institutional investors presentation august19...shared leadership, conquered through talent and...
TRANSCRIPT
Itaú Corpbanca
Institutional Investors
Presentation
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 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
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
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
1.71.3
4.0
2.42.9
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
2.72.3 2.6 2.8 2.9
3.2 3.7
2.4 1.9
3.7
6.8
5.8
4.1
3.23.8
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
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
Our Bank | Resulting from the merger of BIC and Corpbanca: Two different strategies
6
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
7
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 performanceGenerating 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
8
Our Bank | Integration Milestones
201820172016
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
We are key part of Itaú Unibanco’s Internationalization Strategy
Regional footprint & main indicators 1 2
10.2% 4.6% 3Market Share
US$ 25.5 bn US$ 7.0 bn Loans 1 US$ 32.5 bn
5,510 4 3,430 5Headcount 1 8,940
194 157 Branches 1 351
US$ 36.1 bn US$ 9.8 bnAssets 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
(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%
of Itaú Unibanco’s consolidated
loan portfolio6
Itaú Unibanco2
10Itaú 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
US$ 4.0 BnMarket 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
Board Chile
Wholesale
Manuel Olivares
Treasury Marketing &
Products
IT Human
ResourcesRetailCRO 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
HildebrandiÁlvaro
Pimentel
Christian
TauberJulián
Acuña
Marcela
JiménezCristián
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
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
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 organizationCapital Generation
6 Continued and sustainable rebound in results
Resume expansion in business volumes
Advance with the implementation of retail and wholesale strategies
Colombia
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 organizationCapital 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
Growth | Business Mix an Opportunity for Retail Growth1
1 Yearly average gross loans; 2 Loan interests by segments;Source: CMF; Itaú Corpbanca; Team Analysis.
Loans breakdown by segment¹LTM Jun 2019, Ch$ Bn
13.8
7.2
13.8
6.8
Total
6.3 6.3
5.8 5.9
ItaúCorpbanca
AverageTop 3
Interest Rates
27,700
Consumer
Commercial
16,26322,511
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
Growth | Portfolio Mix1
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%
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%
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)
Total Funding BreakdownInterest 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 Profitability1
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
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 organizationCapital 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
Client Centricity | Current Scale Allows for Better Segmentation2
IndividualsBy monthly income(CLP MM)
CompaniesBy 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
Wh
ole
sale
Ba
nk
ing
Re
tail
Ba
nk
ing
23
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 Overview2
24
Branch profile in Chile
Continuous improvement of
the look and feel of our digital
channels.
Review and improvement of benefits and
offers 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
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 organizationCapital 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
Digital Transformation | Initial Roll out of Digital Initiatives3
20+ multidiciplinary teams fully dedicated that are looking at
opportunities 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
Digital Transformation | Retail Banking3
28
77%
Small
CompaniesRetail
Digital
Clients2
+5%
Individuals
AD
OP
TIO
NIN
12 M
ON
TH
S
68%
+24%
1Q17 1Q19
Consumer
Credit41% 86% 45 p.p.
Credit
Limits29% 75% 46 p.p.
Credit Card
Advance 79% 89% 10 p.p.
Time
Deposits59% 75% 16 p.p.
Digital
Branch
Digital
Approach
Multi-Channel
Remote
Access
Extended
Hours
Account
Load
Digital
Branch
Jan/19 198
Jun/19650Personal Bank
Clients
New Clients1
Transactions Though digital channels
- Pilot
1.0x 1.8xJun-18 Jun-19
(1) Considers the number of current accounts opened in each month. (2) May-19
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 Mix3
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
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 organizationCapital 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
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 Expenses4
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%
≠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$, as of June 28th, 2019
Efficiency | Estimated Synergies Captured to Date4
32
207 239 257
306 331 384 404 422 445
481
217 233
18 23 36
16
2009 2010 2011 2012 2013 2014 2015 increase 2016 increase 2017 increase 2018 6M18 increase 6M19
207 239 257
306 331
384 404 410 422 432
217 214
6 12 9
( 3 )
2009 2010 2011 2012 2013 2014 2015 increase 2016 increase 2017 increase 2018 6M18 increase 6M19
+1.4%
+4.6%
+3.5%
+5.6%
+2.2%
+8.1%
-1.3%
+7.4%
≠12
Expand our presence and client base in all business segments
Special focus on growing our Retail Bank
Further increase transactionality and relationship within our client base
Growth
Culture of innovation and transformation
Efficiency and improvement of user experience
Seamless integration from back-office to front-office
Segmentation model with well defined identity and value proposition
Development of products and a “service culture” focused on client satisfaction and long-term relationships
2
1
3
4 Continuously increase the efficiency of our operations
Drill down of the full cost allocation model to product level
Continued focus and discipline in identifying cost saving opportunities throughout the institution
Digital Transformation
Client Centricity
Efficiency
5
Efficiently managing capital allocation through adequate cost of equity
Value creation and RAROC metrics and tools as a driver throughout the organizationCapital Generation
6 Continued and sustainable rebound in results
Resume expansion in business volumes
Advance with the implementation of retail and wholesale strategies
Colombia
Strategic Fronts | Key Strategic Drivers 2019 to Continue Deepening Itaú’s Management Model
Notes:
1 Capital Básico = Core Capital, according to CMF BIS I definitions; includes corresponding adjustments from merger effects of the business combination
2 Patrimonio efectivo = Regulatory Capital, according to CMF BIS I definitions
3 BIS ratio = Patrimonio efectivo / RWA, according to CMF BIS I definitions
Ch$ Tn*
1.02
Capital
Básico1
Subord.
BondMinority
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
35
Capital Generation | Estimated BIS III Capital Ratio5
10,2% -2,4%
-0,2% 7,6%
Regulatory CapitalRatio (Jun. 19)
Other Intangible Assets/ Net Deferred Taxes
Net effectof changes in RWA
Estimated Fully LoadedBIS III Capital
4.3%
14.5%
CET 14.5%
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)
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 organizationCapital 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
37
Colombia | Highlights6
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 EvolutionIn Ch$ Billion
Ch$ million
38
Colombia | Highlights6
Cost of Credit1Operating 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$ BillionIn 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
45.244.0
44.7
42.9
44.8
2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Non-Interest Expenses1
In Ch$ Billion
79.0 78.381.5
85.182.7
2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
+4.7%
-2.9%
(1) Figures in constant currency
4.4%+
-0.9%
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
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
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
Consolidated
Ch$ bn
2.222.111.9
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
Consolidated5.0
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
43.850.7 34.2 60.4 13.7
2Q18 3Q18 4Q18 1Q19 2Q19
8.910.5 6.9 21.2
2Q18 3Q18 4Q18 1Q19 2Q19
21.521.2 21.7 2.3
2Q18 3Q18 4Q18 1Q19 2Q19
2.12.2 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
Consolidated0.0
Chile
2.2
1.9
p.p.
p.p.0.0
%
%
2.4%
4.0%
196.2 220.1194.1 202.2 206.9
206.9
146.5
3.6%
4.8%
47.4 51.749.2 48.6 50.3
50.3
41.1
-7.0%
14.7%
59.0 66.951.4 61.6 57.4
57.4
41.9
1.8%
1.2%
157.2 158.4157.0 154.4 157.2
157.2
112.5
Highlights 2nd Quarter 2019
42
43
About 2Q19 | Managerial Results1
In Ch$ b illion 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
52.85.7
17.0
1.9
-5.4 -1.3 5.8
1Q'19 Financial Marginwith Clients
Financial Marginwith the Market
Commissions andFees
Cost of Credit Non-interestExpenses
Income Tax &Other
2Q'19
BA C D
44
About 2Q19 | Financial Margin with Clients1
In Ch$ billion
134.3 132.6
157.4
140.8146.5
2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
+
134.3146.5
2.17.6 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
other
2Q'19
140.8 146.5
0.14.0 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
About 2Q19 | Financial Margin with the Market1
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
1.71.9 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
About 2Q19 | Cost of Credit and Credit Quality1
46
Cost of Credit Coverage
Non Perfoming Loans (90+ days -%) and NPL Creation (Ch$ billion)
In Ch$ Billion
239,4
133,0
2017 2018
Cost of Credit Risk
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
0 24
6 -2 -3 -0
3 3
-1 21 18 27 23
29 21
C
About 2Q19 | Non-Interest Expenses and Efficiency1
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
DD
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 Evolution1
-0.25
0.00
0.25
0.50
0.75
1.00
1.25
1.50Peer 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
-20
17
04
-04
-20
17
08
-25
-20
17
09
-25
-20
17
10
-17
-20
17
02
-06
-20
18
02
-21
-20
18
03
-14
-20
18
04
-13
-20
18
06
-05
-20
18
02
-11
-20
19
02
-15
-20
19
02
-25
-20
19
02
-26
-20
19
03
-07
-20
19
03
-14
-20
19
05
-07
-20
19
8 bp7 bp
5 bp 5 bp7 bp
5 bp4 bp
9 bp
2 bp
6 bp 6 bp 6 bp 6 bp4 bp
6 bp5 bp
4 bp
Current International Ratings
Moody's S&P
Financial
Capacity
Rating Scale Rating Scale
LT ST LT ST
Extremely
strongAaa
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 Funds1
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
A+
A
A-
A+A+
AA
A+
A
A+
A
A
A-A-
BBB+
BBB+
BBB BBB
BBB+
Ch$ BnLímit
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 Risk1
125.2%
70%
90%
110%
130%
150%
170%
190%
210%
04
-01
-20
16
05
-01
-20
16
06
-01
-20
16
07
-01
-20
16
08
-01
-20
16
09
-01
-20
16
10
-01
-20
16
11
-01
-20
16
12
-01
-20
16
01
-01
-20
17
02
-01
-20
17
03
-01
-20
17
04
-01
-20
17
05
-01
-20
17
06
-01
-20
17
07
-01
-20
17
08
-01
-20
17
09
-01
-20
17
10
-01
-20
17
11
-01
-20
17
12
-01
-20
17
01
-01
-20
18
02
-01
-20
18
03
-01
-20
18
04
-01
-20
18
05
-01
-20
18
06
-01
-20
18
07
-01
-20
18
08
-01
-20
18
09
-01
-20
18
10
-01
-20
18
11
-01
-20
18
12
-01
-20
18
01
-01
-20
19
02
-01
-20
19
03
-01
-20
19
04
-01
-20
19
05
-01
-20
19
06
-01
-20
19
LCR CH LCR Limit4
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
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
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 Outlook2
52Initial projection for 2019Current 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%
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
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
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
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
CorpGroupHelm
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%. 56
New Investor Relations Website
Better experience with a more flexible browsing on the homepage
ir.itau.cl
Improving visibility
Broaden access to communication
Optimized responsive design
Email event alert
Featured presentations
Full focus on stakeholders satisfaction
Flexible browsing
Best practices
57
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
Chile | Macroeconomic Outlook
GDP Growth | % (YoY) Per Capita GDP | US$ Thousand
Unemployment rate | % Inflation and Policy Rate | %
5.1
3.32.7
3.8
7.0
6.25.7
5.2
3.5
-1.6
5.8 6.15.3
4.0
1.82.3
1.71.3
4.0
2.42.9
-2
-1
0
1
2
3
4
5
6
7
8
00 05 10 15 20
5.1 4.6 4.5 4.86.2
7.6
9.510.510.710.6
12.914.2
15.3 15.614.5
13.314.0
15.215.9
15.115.8
0
2
4
6
8
10
12
14
16
18
00 05 10 15 20
9.7 9.9 9.8 9.510.0
9.3
8.0
7.0
7.8
10.8
8.3
7.2
6.56.0
6.3 6.3 6.5 6.77.0 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
2.72.3 2.6 2.8 2.9
-2
0
2
4
6
8
10
00 05 10 15 20
Inflation Policy Rate
59
Chile | Macroeconomic Outlook
International Reserves | % of GDP Current Account Balance | % of GDP
Central Government Fiscal Balance | % of GDP External Debt | % of GDP
60
19.420.221.9
20.8
16.1
13.812.6
9.8
13.214.2
12.6
17.115.6
14.915.7
16.215.913.9
13.413.9
13.2
0
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
1.71.3
-1.7
-3.9 -4.1
-1.7-2.4
-1.6-2.1
-3.1 -3.2-3.2
-5-4-3-2-1012345
00 05 10 15 20
-0.6-0.5
-1.2-0.4
2.1
4.4
7.37.8
3.9
-4.4
-0.5
1.30.6
-0.6-1.6
-2.1 -2.7 -2.7-1.6
-2.3-2.0
-6
-4
-2
0
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
33.229.5 29.7 34.5
38.8 36.438.2
42.946.1
55.2
62.959.6 56.7 54.5
0
10
20
30
40
50
60
70
03 09 15
Privado Publico
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
5.34.7
6.8 6.8
3.3
1.2
4.3
7.4
3.94.6 4.7
3.0
2.11.4
2.6 2.6 2.8
0
1
2
3
4
5
6
7
8
00 05 10 15 20
2.5 2.4 2.4 2.32.8
3.43.7
4.75.3 5.2
6.3
7.38.0 8.1 8.0
6.1 5.86.3
6.6 6.36.7
0
1
2
3
4
5
6
7
8
9
00 05 10 15 20
13.3
15.015.6
14.113.7
11.812.011.211.3
12.011.8
10.810.4
9.69.1 8.9 9.2 9.4 9.7
10.310.0
5
7
9
11
13
15
17
00 05 10 15 20
8.77.6
7.06.5
5.54.9 4.5
5.7
7.7
2.0
3.2 3.7 2.41.9
3.7
6.8
5.8 4.1
3.2 3.83.2
0
5
10
15
00 05 10 15 20
Inflation Policy Rate 61
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
0
00 05 10 15 20
20.824.023.326.0
22.016.616.314.012.1
15.813.812.712.413.715.722.525.123.121.8
15.615.9
14.814.2
11.6
9.9 8.5
7.67.0
7.1 8.8 9.9 8.810.4
11.0
15.5
17.416.9 17.8
0
5
10
15
20
25
30
35
40
45
00 05 10 15
Privado Publico
62
10.411.111.511.6
10.29.5 10.110.210.8
9.9 9.6 10.111.4
12.4
15.916.615.3
14.6
16.6 16.7
0
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
0
2
00 05 10 15 20
(This page was intentionally left blank)
Itaú Corpbanca
Institutional Investors
Presentation
August 2019