institutional presentation. corporate...efficiency ratio 4q16(6) efficiency ratio 3q17(6) highlights...
TRANSCRIPT
September 2017
Itaú CorpBanca Colombia Institutional Presentation
Agenda
3. Itaú CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 3 |
Leading position in Brazil through key competitive strengths
(1) Includes endorsements and sureties. (2) Represents Net Income adjusted for certain non recurring events described, please refer to Historical Series Spreadsheet. (3) Represents Net Income adjusted for certain non recurring events described in the 3Q17 MD&A – Executive Summary. (4) Calculated using Recurring Net Income / Average Equity. For annualized calculation method, please refer to Historical Series Spreadsheet. (5) Calculated using Recurring Net Income / Average Equity. For annualized calculation method, please refer to the 3Q17 MD&A – Executive Summary. (6) See “Efficiency Ratio” slides for criteria.
• USD$ 89.0 billion market cap 1
• 96,326 employees in Brazil and abroad
• 4,919 branches and CSBs in Brazil and abroad
• 46,702 ATMs in Brazil and abroad
• Brazilian multinational bank
• Major provider of finance for the expansion of Brazilian companies
• Among the best talent pool in the Brazilian financial system
• For the 13th consecutive time Itaú Unibanco was elected by the Interbrand
consultancy the most valuable brand in Brazil (USD$ 8.4 billion in 2016)
Global Footprint of Brazil’s Top Private Sector Bank | As of Sep. 30, 2017
Financial Highlights and Ratios As of and for the quarter ended September 2017
1/ Source: Bloomberg. As of September 2017 Exchange rate of BRL 3,1625 / US$1 as of September 30, 2017
Itaú Unibanco | At a Glance
Total Assets
Total Loans(1)
Stockholders’ Equity
Recurring Net Income 2016 (2)
Recurring Net Income 3Q17 (3)
Long Term Foreign Currency
Recurring ROE 2016(4)
Recurring ROE 3Q17(5)
Efficiency Ratio 4Q16(6)
Efficiency Ratio 3Q17(6)
Highlights
Financial Ratios
(Itaú Unibanco Holding)
BIS III CET I Ratio (7)
USD 437.8 Bn
USD 166.9 Bn
USD 35.8 Bn
USD 6.7 Bn
USD 1.9 Bn
Moody’s: Ba3
Fitch BB+
20.3%
21.5%
44.8%
45.7%
14.7%
| 4 | 1 As of September 2017 Exchange rate of BRL 3,1625 / US$1 as of September 30, 2017
• Approximately 28.8 million credit card accounts and
25.9 million debit card accounts;
• Leader in Brazilian credit card market, extensive
number of joint ventures and partnerships with
retailers.
• Total portfolio for individuals of USD$ 4.4 billion;
• Lease and finance through over 12 thousand
dealers;
• One of the largest players based on direct
premiums;
• Association with Porto Seguro for auto and
residential insurance;
• 3Q17 net income: USD$ 202.7 million.
• Small and Medium Enterprises with annual sales up to
USD$ 9.5 million;
• 4.397 branches and client service branches
and 45.502 ATMs in Brazil;
• Premier banking brand in Brazil;
• Strategically positioned for growth in
mortgage market (partnerships with Lopes).
• Full coverage of corporate clients with
annual sales above USD$ 60 million;
• Leadership in IB products with top
positions in major league tables
• Treasury operations for the
conglomerate
• Purpose: to be recognized as “the bank
expert in Latin America”
• •Presence in Latin America: Mexico,
Colombia, Peru, Paraguay, Chile,
Argentina, Uruguay.
• Total assets under administration of
approximately USD$ 296,6 billion;
• Leader in Private banking services in Latin
America.
• Corporate clients with annual sales from USD$ 9.5
million to USD$ 63.2 million.
Itaú
Unibanco
Itaú Unibanco | Universal Bank¹
Risk-based
pricing model
Leader in
performance in
Brazil
Large distribution
network
Diverse lines of
products and
services
Intensive use
of technology
| 5 |
Itaú Unibanco has an important presence in key financial centers supported by a unique recognition and reputation
We want to be recognized as: The bank expert in Latin America
• In line with our Latin America expansion strategy, and with a vision to create value and sustainable performance, in June 2015, the merger of Banco Itaú Chile and
CorpBanca was approved by the shareholders’ of both institutions.
• In September 2015 the merger was approved by the Chilean regulator.
• The transaction creates an important platform for expansion and search for new business in the region. In Chile, it will allow us to move from the 7th to the 4th position
in the ranking of the largest banks in terms of loans.
• On April 1st, 2016, the merger of operations between Banco Itaú Chile and CorpBanca was consummated (“Legal Day One”).
Highlights
Itaú Unibanco | Global Footprint
CIB
NY, Cayman, Bahamas
Institutional clients / Asset
NY, Cayman
Private Banking
Cayman, Bahamas, Miami
CIB
Brazil, Argentina, Chile, Peru, Colombia,
Uruguay, Paraguay, Panamá
Institutional clients / Asset
Brazil, Argentina, Chile, Uruguay
Private Banking
Brazil, Chile, Paraguay
Retail Banking
Brazil, Argentina, Chile, Paraguay, Uruguay,
Colombia, Panamá
CIB
London, Lisbon, Madrid, Paris, Frankfurt
Institutional clients / Asset
London
Private Banking
Zurich
CIB / Institutional clients / Asset
Tokyo, Dubai, Hong Kong
CIB
Mexico
| 6 |
Employees : 1,682
Branches and CSBs : 87
ATMs: 178
Argentina
Employees : 5,972
Branches: 196
ATMs: 472
Chile
Employees : 82,401
Branches and CSBs: 4,397
ATMs: 45,502
Brasil
Colombia¹
Employees: 3,694
Branches and CSBs : 175
ATMs: 176
Employees : 1,120
Branches and CSBs : 25
Points of Service OCA : 35
ATMs: 61
Uruguay
Itaú Unibanco | Retail Footprint in Latin America September 2017
CIB
Minorista
Mexico | CIB
Employees: 9
(1) Considers employees and branches from Panama.
Employees : 814
Branches and CSBs : 39
ATMs: 311
Non-Bank
Correspondents : 52
Paraguay
Peru
Representative
office IBBA
Panamá
| 7 |
USD$ billions
Securities
Loans ¹
Other
Permanent
Domestic Government
Bonds
Pension Plans Fund Quotas
Corporate Securities
Derivatives
International Government
Bonds
Corporate
SMEs
Vehicles
Personal Loans
Credit Cards
LatAm
Mortgage (includes individuals
and companies)
Payroll Loans to
individuals + BMG
437,8
Itaú Unibanco | Evolution and Breakdown of Total Assets
Cash, Cash Equivalents and
Short-term Interbank Deposits
(1) Net of Allowance for Loan Losses (2) Gross Loans, including endorsements and sureties Exchange rate of BRL 3,1625 / US$1 as of September 30, 2017
Loans Breakdown 2 Securities Breakdown
29.5%
28.2%
29.6%
10.9%
1.8%
466,5 451,3
8,4 50,6
130,5
136,9
137,1
2015 2016 3Q17
| 8 |
(2) Includes demand, savings and time deposits plus debentures, mortgage-backed notes, onlending, borrowings, funds from acceptance and issuance of securities abroad, net of reserve
requirements and available funds; (3) The loan portfolio balance does not include endorsements and sureties. (4) Gross funding, ex-deductions of reserve requirements and cash and cash
equivalents Exchange rate of BRL 3,1625 / US$1 as of September 30, 2017
Funding from Clients
Reserve requirements and Cash
Loan Portfolio(3) Loan Portfolio/ Funding (4)
Loan Portfolio/ Gross Funding(3)
Demand and savings Deposits
Time Deposits + Debentures +
Funds from Bills
Assets under administration +
Technical Provisions for Insurance
Pension Plan and Premium Bonds
Total funds from Clients +
Interbank Deposits
Over
365
0-30
181-365
Itaú Unibanco | Evolution and Breakdown of Funding
In USD$ millions
Without CorpBanca With CorpBanca
Funding from Clients¹
(1) Includes institutional clients in the proportion of each type of product invested by them.
% Funding (Maturity Breakdown) Ratio between Loan Portfolio and Funding2 (USD Bn, %)
31-180
53 54 52 52 52 53 53 55 54 89 97 92 106 108 110 104 105 104
277 284 299 310 333 335
357 369 353
446 460 465 490
515 520 537 552 532
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
90,3% 85,5% 86,5% 89,0% 88,8% 88,9% 90,0% 89,8% 90,8%
78,3% 74,4% 74,4% 76,2% 75,4% 74,3% 74,6% 73,9% 73,9%
196 205 191 177 176 175 168 169 163
30 30 31 30 31 34 34 36 37
177 175 165 157 157 155 151 152 148
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
| 9 |
Itaú Unibanco | Recurring ROE
Consolidated ROE / ROA
Brazil ROE ¹
(1) Includes units abroad ex-Latin America
25.5% 25.5% 25.4% 25.1%24.2%
22.8%
20.7% 21.1% 20.8%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Annualized Recurring Return on Average Equity (quarterly)
24.7% 24.9% 24.5% 24.8%24.1%
22.1%
19.6%20.6% 19.9%
1.8% 1.8% 1.7% 1.8% 1.8% 1.6% 1.4% 1.6% 1.6%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Annualized Recurring Return on Average Equity (quarterly) Annualized Recurring Return on Average Assets (quarterly)
Annualized Recurring Return on Average Equity (quarterly
Annualized Recurring Return on Average Equity (quarterly)
24.7% 24.9% 24.5% 24.8%24.1%
22.1%
19.6%20.6% 19.9%
1.8% 1.8% 1.7% 1.8% 1.8% 1.6% 1.4% 1.6% 1.6%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Annualized Recurring Return on Average Equity (quarterly) Annualized Recurring Return on Average Assets (quarterly)Annualized Recurring Return on Average Assets (quarterly)
| 10 |
Itaú Unibanco | Efficiency and Risk-Adjusted Efficiency Ratios
Risk-Adjusted
Efficiency Ratio =
Non-Interest Expenses (Personnel Expenses + Administrative Expenses + Operating Expenses + Other Expenses) + Cost of Credit
(Managerial Financial Margin + Commissions and Fees + Result of Insurance, Pension Plan and Premium Bonds –
Tax Expenses for ISS, PIS, Cofins and Other Taxes)
44,2 44,0 44,1 44,6 45,6 45,3 45,3 45,5 45,3
62,8 63,7 65,9 67,7 69,3 70,1 68,2 66,6 65
44,0 45,8 43,6 44,9 48
44,8 43,6 45,7 47,3
63,4 65,5 72,4 69,8 69,6 68,6
64,5 63,4 63,3
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Trailing 12-month Efficiency Ratio (%) Trailing 12-month Risk-Adjusted Efficiency Ratio (%)
Quarterly Efficiency Ratio (%) Quarterly Risk-Adjusted Efficiency Ratio (%)
| 11 |
Itaú Unibanco | Information Technology
(1) Standard channels: Branches, ATM, Telephone. (2) Electronic Remote Channels: Mobile and Internet
Evolución de clientes en canales remotos
Clients (millions)
Agenda
3. Itaú CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 13 |
Itaú CorpBanca | Highlights
Regional footprint & main indicators
September 30, 2017 3
Itaú CorpBanca 2 3
We are the 4th largest private bank in Chile and the 5th 1 banking group in Colombia
RoTAE8
RoTAE8
Itaú CorpBanca Chile Assets: US$ 34.7 BN
Headcount: 5,974
Branches: 219
Itaú CorpBanca
Colombia
Assets: US$ 10.3 BN
Headcount: 3,636
Branches: 175
Itaú (Panamá) Assets: US$ 0.6 BN
Headcount: 52
Itaú CorpBanca Rep Office Perú Started operation on November 1, 2017
US$ 45.6BN
US$ 32.6BN
9,662
Loans
Assets
Headcount #
Branches # 384
34.7 10.98
US$ 58.5BN 3
US$ 5.0BN 3
2.2%
0.7% Recurring RoTAE8 2016
11.05 5.25
25.0 7.68
5,9746 3,6887
209 175
118.13 (59.6)3
9.03 (4.0)3
6.2% -7.9%
1.6% -2.6%
Market Share
Recurring RoTAE8 3Q17
US$ 4.6BN 4
Market Cap
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 September 30, 2017; 3 Figures were converted at an exchange rate of 639.14 CLP/USD; 4 As of November 9, 2017; 5 As of September 30, 2017; 6 Includes employees of Itaú CorpBanca New York Branch as of September 30, 2017; 7 Includes Panamá as of
September 30, 2017; 8 Tangible Equity: Shareholders equity net of goodwill, intangibles from business combination and related deferred tax liabilit ies; 9 Considers assets, headcount and branches for Chile only.
Sources: Itaú CorpBanca, SBIF and SFC.
Recurring Net Income 2016
Recurring Net Income 3Q17
| 14 |
Itaú CorpBanca | Relevance in LatAm and South America
Loan Portfolio as of Sep. 2017
US$ BN7
Itaú CorpBanca is currently the 4th largest private bank in Chile. The merger positions Itaú CorpBanca and Itaú LatAm as the 3rd largest bank in terms of assets within South America (ex-Brazil)
Itaú CorpBanca represents 22%
of Itaú Unibanco’s consolidated
loan portfolio 7
Itaú Unibanco's
Loan Portfolio 8
Itaú CorpBanca's
Loan Portfolio
Banks by Assets in Latin America 1 Banks by Assets in South America (ex-Brazil) 5
4
US$ BN US$ BN
Santander
7. Banorte
Caixa
Bradesco3
9. Scotiabank
Banco do Brasil
8. BBVA
Citibank
1
2
3
4
5
6
7
8
9
16
Itaú LatAm6
Bancolombia
5. Grupo Aval
Santander
BBVA
Banco del Estado de Chile
1
2
3
5
6
7
Banco de Chile
BCI
Itaú CorpBanca4 9
8
Itaú Unibanco2
10 Itaú CorpBanca4 Banco de Crédito del Perú Itaú CorpBanca
Banorte
Scotiabank
Citibank
BBVA
Santander
Bradesco
Caixa
Banco do Brasil
Itaú Unibanco
437
438
332
64
386
59
366
168
55
44 Banco de Crédito
del Perú
Itaú CorpBanca
Bancolombia
BCI
Banco de Chile
Grupo Aval
Itaú LatAm
Banco del Estado
de Chile
BBVA
Santander
48
49
54
47
37
61
68
55
49
44
1 Data as of June 30, 2017. Includes Brasil, México, Argentina, Perú, Chile and Colombia; 2 Includes Brasil, México, Argentina, Perú, Uruguay, Paraguay, Venezuela, Chile y Colombia; 3 Since September 30, 2016 Bradesco consolidates with HSBC Brasil; 4
Includes Chile y Colombia (Itaú CorpBanca Chile with ~US$35MMM in assets); 5 Data as of June 30, 2017. Includes Argentina, Perú, Chile y Colombia; 6 Includes Argentina, Perú, Uruguay, Paraguay, Venezuela, Chile y Colombia; 7– Considering the consolidated loan
portfolios of Itaú Unibanco and Itaú CorpBanca reported in their respective 3Q’17 MD&As and a R$ 3.1663 / US$ and a Ch$ 639.14 / US$ foreign exchange rates as of 30.09.2017; 8– As of September 30, 2017, Itaú Unibanco held a 36.06% equity stake in Itaú CorpBanca
but as the controlling shareholder, fully consolidates Itaú CorpBanca’s Financial Statements.
Source: Central Banks , local regulators, companies filings, Itaú CorpBanca.
| 15 |
Introduction | Shareholders Structure after Merger
August 11, 2017
4th largest Market Cap among Peers
Note: Figures were converted at an exchange rate of Ch$646.96 US$1 (as of August 11, 2017).
Source: Itaú CorpBanca & Santiago Stock Exchange.
#4
ADRs holders and Foreign investors 10.84%
Securities Brokerage 8.69%
Santo Domingo Group 1.92%
Insurance Companies 1.07%
AFPs 0.52%
Other minority shareholders 6.93%
1- Includes 182,125,023 shares owned by Cía. Inmobiliaria y de
Inversiones Saga SpA that are under custody.
ITAÚ CORPBANCA Total shares: 512,406,760,091(100%)
Itaú Unibanco
35.71%
July 31, 2017
Shareholders - % Total share capital
Saieh Family1
31.00%
IFC
3.32%
Others
29.97%
13,79 13,73
7,68
4,73
1,47
PEER-A PEER-B PEER-C ITAUCORP PEER-D
US$
BN
| 16 |
Introduction | Strong and integrated Corporate Governance
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. 3- Responsible for the technological integration process in Colombia
Board Chile
Itaú CorpBanca CEO
Milton Maluhy
CFO
Gabriel
Moura
CRO
Mauricio
Baeza
Treasury
Pedro
Silva
Marketing &
Products
Rogério
Braga
Colombia
Álvaro
Pimentel
Wholesale
Christian
Tauber
Retail
Julián
Acuña
Human
Resources
Marcela
Jiménez
Legal &
Compliance
Cristián
Toro
IT &
Operations
Luis
Rodrigues
Itaú CorpBanca Colombia CEO
Álvaro Pimentel
CFO
María C.
Vandame
CRO
Edson
Da Silva
Treasury
Derek
Sasoon
Communic.
& Institut. Relat.
Carolina
Velasco
Wholesale
Jorge
Villa
Retail
Claudia
Vélez
Human
Resources
María Lucía
Ospina
Legal & General
Secretary
Dolly Murcia
Operations
Liliana
Suárez
IT
Lilian
Barrios
Board Colombia
Chairman
Milton Maluhy
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
Franchise, Products
& Digital
Luciana
Hildelbrandi
3
Chairman
Jorge Andrés Saieh Guzmán
Board Chile 1 2 Board Colombia
Chairman
Milton Maluhy
Ricardo Villela Marino
Eduardo Mazzilli de Vassimon
Boris Buvinic Guerovich
Andrés Bucher Cepeda
Pedro Samhan Escandar
Roberto Brigard Holguín
Luis Fernando Martínez Lema
Carmiña Ferro Iriarte
Rafael Pardo Soto
Juan Echeverría González
Gabriel Moura
Rogério Braga
Mónica Aparicio Smith
Fernando Concha Ureta
Jorge Selume Zaror
Fernando Aguad Dagach
Gustavo Arriagada Morales
Bernard Pasquier
Audit Committee
CAE
Emerson Bastián
| 17 |
Current International Ratings
Ratings | Improvements will contribute to lowering cost of funds
Source: Itaú CorpBanca, Moody’s, S&P
Timeline S&P Moody's S&P
Financial
Capacity
Rating Scale Rating Scale
LT ST LT ST
Extremely
strong Aaa
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
A+
A
A+ A+ A+
A- A-
A A A
A
BBB+
BBB+
A-
BBB BBB
BBB+
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Agenda
3. Itaú CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 19 |
Itaú CorpBanca Colombia | Our History
In the last years we have had interesting experiences and learned to know people, their tastes, their customs and their dreams. After one century Itaú arrives to Colombia, we are working in having a bank made for you.
Highlights 2011
Assets: USD 2,6 Bn.
# Headcount: 1367.
# Branches: 77
Footprint 2012
Assets: USD 3,0 Bn.
Headcount: 1500.
# Branches: 82
Footprint 2014 3
Assets: USD 9,3 Bn.
# Headcount: 3232.
# Branches: 170
Banco Santander in Colombia
Acquisition of Santander and brand
change: Banco CorpBanca
Acquisition of Helm Bank and its subsidiaries
Change in the controlling Shareholder, Introduction of Itaú brand
and acquisition of Assets and Liabilities from Itaú BBA 1
Footprint 2017 2
Assets: USD 10,2 Bn
# Headcount: 3.604
# Branches: 176
Source: Itaú CorpBanca Colombia, 1. Itaú CorpBanca Colombia acquired the Assets and Liabilities from Itaú BBA Colombia at their book value. Transaction approved by the SFC on April 2017. Assets book value of COP 398 thousand millions and Liabilities book value of COP 84.5 thousand millions as of February 2017. 2. Numbers as of June 2017 3. Helm CorpBanca Legal merger took place on June 2014
| 20 |
Itaú CorpBanca Colombia | Highlights
Source: Itaú CorpBanca Colombia, Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
1: Depuration in the number of accounts due to the technologic migration process.
2. Bank and subsidiaries. includes Panamá
MS: 5,1% 2
#Player: 6
TIER I: 9,35%
Total Capital Ratio: 12,68%
NPLs 30-days: 3,7%
Net Inc. FY16: USD~ -51,39 MM
Net Inc. 3Q17: USD~ -32,12 MM
Bank #6 in Colombia, with over 485 thousand clients1 and presence in 30 locations in Colombia and one in Panama.
USD$ 11BN
USD$ 7BN
3.636
Gross Loans
Assets
Headcount # 2
ATMs #
176
485M Clients #
Branches # 175
Itaú CorpBanca Colombia’s Footprint as of September 30, 2017
Two brands in Colombia
| 21 |
Itaú CorpBanca Colombia | Shareholders Structure
Source: Itaú CorpBanca Colombia
1 Itaú (Panamá) has International License
On May 22nd 2017 the Itaú brand was introduced in Colombia. The Bank and it’s subsidiaries changed their legal
names.
Shareholders Structure Financial Group in Colombia
Itaú
CorpBanca
en Chile
Itaú CorpBanca
Colombia
CorpGroup Helm Minority
66.28% 12.36% 20.82% 0.54%
Itaú CorpBanca
Colombia
Itaú Fiduciaria Itaú Securities
Services
Itaú
Comisionista
de Bolsa
Itaú (Panamá)1
Itaú Corredor
de Seguros
94.0% 94.5% 95.0% 100%
Itaú Casa de
Valores
(Panamá)
100%
| 22 |
Moody´s FITCH S&P
BBB- / Negative Apr./2017
BBB / Negative Jan./2017
BBB / Stable Mar./2017
Baa2 / Stable May./2016
Colombia Sovereign
Banco CorpBanca Colombia IDR (Issuer Default Rating)
Banco CorpBanca Colombia
National, Long-Term
AA+ / Negative
Apr./2017
AAA / Stable
Mar./2017
Banco CorpBanca Colombia
National, Short-Term F1+
Apr./2017
BRC 1+
Mar./2017
Fitch’s sustains its rating downgrade in national scale on the deterioration in loan-portfolio
quality and profitability. Fitch includes a Target Profit to regain Stable outlook.
AA+ Banks in Colombia: Sudameris, Finandina, Procredit
Itaú CorpBanca Colombia | Risk Ratings
Itaú CorpBanca Colombia has an Investment Grade rating of BBB-, and two local ratings in Colombia: one AAA and one AA+
Source: Itaú CorpBanca Colombia, rating agencies, FitchRatings, INC
| 23 |
Risk Indicator = Allowance for Loan Losses / Gross Loans (%)
Source: Superintendencia & Itaú CorpBanca Colombia
1. Quarterly Expense
Itaú CorpBanca Colombia | Loan Provisions
LLP Expense / Gross Loans (%) 1
The Bank made relevant LLPs on 4Q16. In 2017 the expense returns to previous levels, ending with a Ratio of LLP / Gross Loans equal to the average of Banks
0,6 0,7 0,7
0,6
1,0
1,8
0,7 0,8
0,7
0,5 0,6 0,5 0,6 0,6 0,8
0,6 0,8
0,8
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
3,9 4,0 4,3 4,3
4,7
5,2 5,0 5,3
5,5
4,3 4,4 4,5 4,6 4,7
4,8 5,0
5,2 5,5
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
| 24 | Source: Superintendencia & Itaú CorpBanca Colombia,
1: Loan Loss Provisions / Past Due loans above 30 days
2017 shows an increase in the loan-portfolio quality of the average of banks, in NPLs as well as B,C,D,E Loans. Itaú CorpBanca maintains better quality and coverage levels than the total banks for NPLs. The system increased its B, C, D, E Loans decreasing the gap with Itaú CorpBanca.
Itaú CorpBanca Colombia | Credit-Risk Ratios
NPLs 30 days (%)
Coverage (%) 1
B, C, D, E Loans / Gross Loans (%)
B, C, D, E Loans Coverage (%)
2,4 2,2 2,5 2,5
3,3
2,9 3,0 3,5 3,7
3,0 2,8 3,1 3,0
3,2
3,1
3,9 4,2 4,4
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
163,9
185,7
169,2 171,5
142,8
179,6
164,5
150,5 146,8
146,7
155,9
143,7 150,7
145,1
155,5
128,2 125,2 124,9
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
5,9 6,5 6,6
7,1
9,0 9,8 9,9 9,9 10,0
6,3 6,5 6,8 7,1
7,2 7,8
8,9 9,4 9,6
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
66,3
61,9
65,5
60,8
52,8 53,3 50,3
54,1 55,0
68,5 67,8 66,5 64,0 64,9
61,6
55,7 55,3 56,9
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
| 25 |
Itaú CorpBanca Colombia | Loan-portfolio quality by type
The Bank has been no stranger to the increase in the loan-portfolio quality of the Financial system in Colombia. Still, it maintains levels of past due loans above 30 days, below those of the average of total banks.
Source: Superintendencia & Itaú CorpBanca Colombia
1. Includes past due payments from 1 to 4 months
Commercial >30 days (%)
Consumer >30 days (%)
Mortgage >30 days (%) 1
1,9 1,8 2,2 2,3
3,3 2,8
2,9 3,4 3,6
2,3 2,1 2,4 2,2
2,5 2,3
3,3 3,5 3,8
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
4,2 3,7
4,1 3,9 4,1 3,9 4,2 4,8 4,9
4,5 4,4 4,8 4,8 4,8 4,9
5,4 5,8 5,9
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
1,1 1,1 1,4 1,2 1,4 1,5 1,6
2,0 2,0
1,9 2,0 2,0 2,1 2,2 2,3 2,4 2,7 2,9
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Itaú Total Banks
| 26 |
Itaú CorpBanca Colombia | Net Interest Margin
Taking into account the downward cycle of the interest rates from the Central Bank at the end of 2016, where the reference rate dropped by 225 during 2017, the Bank’s NIM has increased 50 bps on average.
Fuente: Superintendencia & Itaú 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
NIM (%) 1
2015 Average NIM 2015 2016 Average NIM 2017 Average NIM
Loans and Deposits Implicit Rates (%)
5,2 4,0 4,5
5,24
4,91 4,83 4,69 4,24
4,69
3,96 4,17 4,04 3,66 3,39 3,40
4,07 4,20 4,09 4,16 4,41 4,72
4,01 4,40 4,51 4,57 4,81 4,78
4,43 4,75
5,25 5,50 5,75 6,00 6,25 6,50 7,00 7,25 7,50 7,50 7,75 7,75 7,75 7,75 7,50 7,50 7,25 7,00 7,00
6,25 6,25
5,50 5,50 5,25
NIM CenBank Rate
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
Loans Bonds TDs CanBank Savings
11,09
8,18
7,22
5,25
4,34
| 27 |
Funding Mix (%)
In 2017 The Bank mantains its funding structure with 61% in time deposits and bonds. The proportion of value at risk on the capital adecuacy ratio has decreased. The Bank is using hedges as an instrument to reduce risk.
Source: Superintendencia & Itaú CorpBanca Colombia,
1 Total Capital Adequacy ratio minus capital adequacy ratio without VaR.
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
Itaú CorpBanca Colombia | Funding Evolution
VaR weight on capital adequacy ratio (USD millions, %)1
11 9 9 9 8 8 8 8 7
42 44 43 36
30 28 27 31 31
42 40 40 49 53 51 53 50 50
7 7 8 8 10 12 12 12 11
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Bonds
TDs
Savings
Checking
76,4 77,9 86,7 74,6 75,1 51,0 60,5 63,5 66,0
1,3% 1,4%
1,3% 1,2% 1,3%
0,9%
1,1% 1,1% 1,2%
0,9% 0,9% 1,0%
0,9% 0,9% 0,7%
0,9% 0,9% 0,8%
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
VAR
Ratio Itaú
Ratio Banks
| 28 |
TDs by Duration – Banks (%, USD billion) TDs by duration - Itaú (%, USD billion)
Less than
6 months
From 6 months and
less than 12 months
From 12 months and
less than 18 months
18 months
or more
Itaú CorpBanca Colombia | Term Deposit Certificates
As of September 2017 The Bank has TDs for USD $3,5 billion where 55% of them have duration of 18 months or more. The average duration for The Bank’s TDs went from 0,46 years to 0,82 years between Sep. 2016 and Sep. 2017. As of August, the System shows a similar composition where 52% of the TDs have a duration over 1,5 years.
Source: Superintendencia & Itaú CorpBanca Colombia
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
Less than
6 months
From 6 months and
less than 12 months
From 12 months and
less than 18 months
18 months
or more
17%
20%
21%
42%
sep-16
14%
15%
15%
55%
sep-17
$3,9 $3,5
18%
20%
15%
47%
sep-16
17%
17%
14%
52%
sep-17
$44,1 $50,2
| 29 |
Source: Superintendencia & Itaú CorpBanca Colombia
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
The Bank’s funding mix has a greater share of term deposits and bonds compared to that of the total banks, showing convergence of its liquidity indicators towards Basel III. In the composition of loans by type The Bank is similar to the average of the system. At the moment The Bank´s focus in terms of Loan Portfolio is profitability more than growth in market share.
Itaú CorpBanca Colombia | Funding mix and Loan Portfolio
Funding Mix (USD Bn,%) Gross Loans by type (USD Bn,%)
Itaú CorpBanca Sep/17: 7,0 Bn Growth 2016/2017: -5,2%
Banks Sep/17: 136,9 Bn
Growth 2016/2017: +9,7%
Itaú CorpBanca Sep/17: 7,3 Bn Growth 2016/2017: -2,0%
Banks Sep/17: 139,6 Bn Growth 2016/2017: +10,3%
-11,1%
+1,1%
+8,1%
-5,6%
-3,3%
-2,3%
+6,5%
+9,4%
+9,5%
+10,5%
+7,2%
+13,2%
+7,0%
+18,1%
+9,0%
8%
11%
31%
50%
Checking
Bonds
Savings
TDs
12%
12%
40%
37%
Checking
Bonds
Savings
TDs
11%
23%
66%
Microloans
Mortgage
Consumer
Commercial
3%
13%
27%
57%
Microloans
Mortgage
Consumer
Commercial
| 30 |
Itaú CorpBanca Colombia | Loan Portfolio
Source: Itaú CorpBanca Colombia
1. Gross Loans
Loans by Segment1
As of September 2017 the bank has 7
customer segments
32%
Corporate
33%
Individuals
10%
Medium Enterprises
6%
Small Enterprises
5%
Construction
2%
Institutional
3%
Private Banking
32%
33%
10%
6%
5% 2% 3%
| 31 |
Itaú CorpBanca strengthened its liquidity management, sufficiently fulfills regulatory indicators and maintains a ratio of Net Loans over Funds below one. The Bank manages its liquidity under Basel III standards with an LCR above 100%
Itaú CorpBanca Colombia | Liquidity
Liquid Coverage Ratio - IRL 30 days - (USD Bn)
Source: Itaú CorpBanca Colombia,
1: Funding: Savings and Checking accounts, Term Deposit and Bonds
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
Ratio between Loan Portfolio and Funding (%, USD billion)1
100%
150%
200%
250%
300%
350%
400%
450%
500%
550%
600%
8/1/16 7/2/16 8/3/16 7/4/16 7/5/16 6/6/16 6/7/16 5/8/16 4/9/16 4/10/16 3/11/16 3/12/16 2/1/17 1/2/17 3/3/17 2/4/17 2/5/17 1/6/17 1/7/17 31/7/17 30/8/17 29/9/17
239%
6,9 6,9 7,0 7,1 7,1 6,9 6,9 7,0 6,9 7,1 7,8 7,5 7,8 7,4 7,4 7,2 7,3 7,0
97,3% 89,4% 92,5% 90,5%
95,4% 93,9% 96,3% 95,2% 97,7%
Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Net Loans
Deposits
Ratio
| 32 |
1.043 247
796
268 15 1.079
Tier 1/Deductions
Good will Tier 1 SubordinatedDebt
Other RegulatoryCapital
Tier 1
Consolidated
Tier1+Tier2
Consolidated
Non-
Consolidated
Itaú CorpBanca Colombia | Capital Ratios
Consolidated regulatory capital ratio Jun/17 1 (%)
Itaú CorpBanca shows a Regulatory Capital above required levels with a Tier 1 of 9,0% (regulatory minimum of 4,5%).
Source: Superintendencia & Itaú CorpBanca Colombia
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
1: Source: Annual reports of each bank.
Non-consolidated regulatory capital ratio Sep/17 (USD MM, %)
9,4%
12,7%
10,3% 9,4% 10,2% 7,8%
9,0%
15,5%
21,6%
13,3%
15,8%
12,7%
Bancolombia Bogotá Occidente Davivienda Itaú
14,3%
12,2% 12,6%
14,2% 12,8%
| 33 |
So far on 2017 the bank shows losses of USD 32 million. LLPs increase according to the market’s situation, expenses are affected by brand change, technological integration and fiscal reform.
Source: Itaú CorpBanca Colombia
1 - 12 months net Income over 12 months average of equity and assets
Exchange rate of COP 2936,67 per 1 USD as of September 30, 2017
ROE & ROA (%)1
Net Income Sep. 2017 (USD millions)
Itaú CorpBanca Colombia | P&L 1Q2017 and Profitability Ratios
System
7,84 5,94
2,73
-4,03 -6,55
-8,43 -6,84
510,97
0,93 0,7 0,32 -0,47
-0,77 -0,99 -0,79
1,32
Mar-16 Jun-16 Sep-16
ROE
ROADec-16 Mar-17 Jun-17 Sep-17
615,2 318,3
35,5 32,7 159,3
116,4
Personnel
expenses
Other
Expenses Taxes
Net
Income Net LLP
Derivatives
and portfolio
income
Net
Commissions
and fees
Interest
Expense
Interest Income
from Loans and
Leases
Administrative
expenses
Annual
Growth +3% -6% -64% -7% -6% +13% +15% +31% -97%
89,3 31,5 0,6 -32,1
September 2017
Itaú CorpBanca Colombia Institutional Presentation