larrainvial | 13th andean · 2019-04-02 · larrainvial | 13th andean & southern cone...
TRANSCRIPT
Itaú Corpbanca
LarrainVial | 13th Andean &
Southern Cone Conference
Presentation
March 19 – 20, 2019 | Santiago
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 Superintendencia de Bancos e Instituciones Financieras, or “SBIF.” 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 SBIF and
the Comisión para el Mercado Financiero, the Chilean Commission for the Financial Market, or “CMF,” and provide copies of such reports and notices to the Chilean Stock Exchanges and the SEC. All such
reports are available at www.sbif.cl, www.cmf.cl, www.sec.gov and ir.itau.cl.
2
Agenda1. Investment Case
2. Financials
3. Key Strategic Drivers
4. Appendix
Itaú Corpbanca | Investment Case
1 As of December 31, 2018. Source: Economatica
2 – Rankings based on gross loans as reported to the Superintendencia de Bancos e Instituciones Financieras (SBIF), excluding loans from Itaú Corpbanca Colombia, and Superintendencia Financiera de Colombia (SFC).
Source: Company financials.
Solid Macroeconomic Fundamentals and Expanding Banking Sector
Chile is one of the most developed economies in Latin America, sustained by solid macroeconomic fundamentals
Chile has one of the best sovereign ratings and among the lowest CDS spreads in Latin America
Colombia is also an attractive market with a diversify economy
The Chilean and the Colombian banking sectors have achieved high profitability and healthy assets quality with effective regulatory oversight
LatAm Banking Sector has potential to achieve further growth, particularly in the underpenetrated retail segments
Solid
Macroeconomic
Fundamentals
Unique control and support from a leading institution
Itaú Unibanco is the largest private financial institution in Brazil and a premier LatAm franchise
Itaú Corpbanca benefits from the strength of a ~US$88.3 BN1 market cap partner in its existing markets while enhancing
opportunities for growth abroad
Opportunity to leverage Itaú Unibanco’s strong global client relationships successful managing model
Itaú Corpbanca will be able to expand its banking products’ offering through segmentation and digitalization
Larger banking platform
Greater scale and resources to grow and compete more effectively in Chile and Colombia
Enhanced footprint in Chile and Colombia create a platform to expand in the region, particularly into Peru and Central America
5th largest private bank in Chile and 6th largest banking group in Colombia by total loans2
2
1
3
4Itaú CorpBanca will have a stronger financial profile and greater earnings power
Estimated pre-tax cost synergies between US$88MM and US$107MM approximately per year on a fully phased-in basis and
total one-time pre-tax integration costs of approximately US$85MM to occur during the first 3 years
Improved funding profile and substantial potential for revenue synergies
Additional cross-selling opportunities
Improved capital position opens room for further loan growth
Unique Control
and
Support
Banking Platform
with Larger Scale
Positive Impact
to Itaú Corpbanca
Solid Macroeconomic Fundamentals and Expanding Banking Sector
Chile is one of the most developed economies in Latin America, sustained by solid macroeconomic fundamentals
Chile has one of the best sovereign ratings and among the lowest CDS spreads in Latin America
Colombia is also an attractive market with a diversify economy
The Chilean and the Colombian banking sectors have achieved high profitability and healthy assets quality with effective regulatory oversight
LatAm Banking Sector has potential to achieve further growth, particularly in the underpenetrated retail segments
Solid
Macroeconomic
Fundamentals
Unique control and support from a leading institution
Itaú Unibanco is the largest private financial institution in Brazil and a premier LatAm franchise
Itaú Corpbanca benefits from the strength of a ~US$88.3 BN1 market cap partner in its existing markets while enhancing
opportunities for growth abroad
Opportunity to leverage Itaú Unibanco’s strong global client relationships successful managing model
Itaú Corpbanca will be able to expand its banking products’ offering through segmentation and digitalization
Larger banking platform
Greater scale and resources to grow and compete more effectively in Chile and Colombia
Enhanced footprint in Chile and Colombia create a platform to expand in the region, particularly into Peru and Central America
5th largest private bank in Chile and 6th largest banking group in Colombia by total loans2
2
1
3
4Itaú CorpBanca will have a stronger financial profile and greater earnings power
Estimated pre-tax cost synergies between US$88MM and US$107MM approximately per year on a fully phased-in basis and
total one-time pre-tax integration costs of approximately US$85MM to occur during the first 3 years
Improved funding profile and substantial potential for revenue synergies
Additional cross-selling opportunities
Improved capital position opens room for further loan growth
Unique Control
and
Support
Banking Platform
with Larger Scale
Positive Impact
to Itaú Corpbanca
Itaú Corpbanca | Investment Case
1 As of December 31, 2018. Source: Economatica
2 – Rankings based on gross loans as reported to the Superintendencia de Bancos e Instituciones Financieras (SBIF), excluding loans from Itaú Corpbanca Colombia, and Superintendencia Financiera de Colombia (SFC).
Source: Company financials.
GDP Growth (%) Interest Rates (EOP) - %
Inflation (CPI) - %
Source: Central Bank of Chile and Central Bank of Colombia. Itaú CorpBanca’s projections
Exchange rates – CLP/USD & CLP/COP
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
580
600
620
640
660
680
700
720
740
CLP/USD CLP/COP
3.3
5.3 5.0 4.5
3.0 3.5 3.5
2.5 2.8 3.3
4.0
3.0
4.8 4.3
3.3
4.5
5.8
7.5
4.8 4.3 4.5 4.5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia
5.8 6.1
5.3
4.0
1.8
…
1.3 1.5
4.0
3.2
4.0 4.0
6.6
3.9
4.6 4.7
3.0
2.0 1.8
2.7
3.33.6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia
3.0
4.4
1.5
3.0
4.6 4.4
2.72.3 2.6 2.6
2.9 3.2
3.7
2.4 1.9
3.7
6.8
5.8
4.1
3.2 3.0 3.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(e) 2020(e)
Chile Colombia
6
Macroeconomic Backdrop1
Solid Macroeconomic Fundamentals and Expanding Banking Sector
Chile is one of the most developed economies in Latin America, sustained by solid macroeconomic fundamentals
Chile has one of the best sovereign ratings and among the lowest CDS spreads in Latin America
Colombia is also an attractive market with a diversify economy
The Chilean and the Colombian banking sectors have achieved high profitability and healthy assets quality with effective regulatory oversight
LatAm Banking Sector has potential to achieve further growth, particularly in the underpenetrated retail segments
Solid
Macroeconomic
Fundamentals
Unique control and support from a leading institution
Itaú Unibanco is the largest private financial institution in Brazil and a premier LatAm franchise
Itaú Corpbanca benefits from the strength of a ~US$88.3 BN1 market cap partner in its existing markets while enhancing
opportunities for growth abroad
Opportunity to leverage Itaú Unibanco’s strong global client relationships successful managing model
Itaú Corpbanca will be able to expand its banking products’ offering through segmentation and digitalization
Larger banking platform
Greater scale and resources to grow and compete more effectively in Chile and Colombia
Enhanced footprint in Chile and Colombia create a platform to expand in the region, particularly into Peru and Central America
5th largest private bank in Chile and 6th largest banking group in Colombia by total loans2
2
1
3
4Itaú CorpBanca will have a stronger financial profile and greater earnings power
Estimated pre-tax cost synergies between US$88MM and US$107MM approximately per year on a fully phased-in basis and
total one-time pre-tax integration costs of approximately US$85MM to occur during the first 3 years
Improved funding profile and substantial potential for revenue synergies
Additional cross-selling opportunities
Improved capital position opens room for further loan growth
Unique Control
and
Support
Banking Platform
with Larger Scale
Positive Impact
to Itaú Corpbanca
Itaú Corpbanca | Investment Case
1 As of December 31, 2018. Source: Economatica
2 – Rankings based on gross loans as reported to the Superintendencia de Bancos e Instituciones Financieras (SBIF), excluding loans from Itaú Corpbanca Colombia, and Superintendencia Financiera de Colombia (SFC).
Source: Company financials.
Itaú Unibanco | At a Glance2
Leading position in Brazil
• US$ 88.3 billion market cap 1
• 100,335 employees in Brazil and abroad
• 4,940 branches and CSBs in Brazil and abroad
• 48,476 ATMs in Brazil and abroad
• Around 49.7 million clients in the Retail Bank
• Brazilian multinational bank
• Major provider of finance for the expansion of Brazilian companies
• In 2017 Itaú Unibanco was elected the The Best Company in People Management (by “Valor Carreira” magazine)
and also recognized as a pro-ethics company (Pró-Ética), an initiative between the Office of the Comptroller
General 2 with the private sector, which encourages the voluntary adoption of integrity measures and corruption
prevention in the business sector, being the only financial institution among the companies approved.
Global Footprint of Brazil’s Top Private Sector Bank | as of December 31, 2018
Financial Highlights and RatiosAs of and for the quarter ended December 31, 2018
1 As of December 31, 2018. Source: Economatica; 2 Controladoria-Geral da União (CGU).
Highlights
Total Assets BRL 1,649.6 Bn
Total Loans 1 BRL 636.9 Bn
Stockholders’ Equity BRL 131.8 Bn
Recurring Net Income 2018 2 BRL 25.7 Bn
Recurring Net Income 4Q18 2 BRL 6.5 Bn
Long Term Foreign Currency Moody´s: Ba3
(Itaú Unibanco Holding) Fitch: BB
S&P: BB-
Financial Ratios
Recurring RoE 2018 3 21.9%
Recurring RoE 4Q18 4 21.8%
Efficiency Ratio 2018 5 47.6%
Efficiency Ratio 4Q18 5 48.7%
Liquidity Coverage Ratio 172%
Tier I Capital 6 15.9%
(1) Includes financial guarantees provided and corporate securities. (2) Represents Net Income adjusted for certain non recurring events described in Itaú Unibanco’s 4Q18 MD&A – Executive Summary.
(3) Calculated using Recurring Net Income / Average Equity. For annualized calculation
method, please refer to Itaú Unibanco’s Historical Series Spreadsheet.
(4) Calculated using Recurring Net Income / Average Equity. For annualized calculation
method, please refer to Itaú Unibanco’s 4Q18 MD&A – Executive Summary.
(5) See “Efficiency Ratio” slides in this presentation for criteria.
(6) Includes impacts from schedule anticipation of deductions and does not consider the
additional dividend and interest on own capital.
8
Itaú Unibanco | Joint Ventures and Partnerships with Retailers2
HighlightsJVs and Partnerships
• Focus on credit card instruments
• Long term agreements
• Alignment of incentives
• Brazilian market leader in credit card transactions.
• Qualification of the client base: proprietary channel x partnerships
• Credit card business comprises:
• Issuance of cards
• Acquiring: REDE
• JVs and partnership with retailers
• Own brand: Hiper
• Approximately 60.5 million card accounts (4Q18)
• 32.4 million credit card accounts
• 28.1 million debit card accounts
• R$ 131.7 billion in card transactions (4Q18)
• R$ 97.6 billion in credit card transactions
• R$ 34.1 billion in debit card transactions
• High growth potential in credit card usage in Brazil.
Highlights
9
Itaú Unibanco | Capital Ratios2
1 Considers the payout of 89.2% and the average daily closing price in 2018; 2 Dividends and IOC net of taxes.
Full application of Basel III rules │ December 31, 2018
Assets deductions
and RWA
Tier I
Dec-18Tier I
Dec-17
Net Income
and other Equity changes
Tier I – Dec-18 after
additional dividends
and IOC
Aditional Tier 1 Capital
Issued on Mar-18 and
exchange rate variation
Dividends, IOC
and shares
buyback
Additional
dividends and IOC
Common Equity Tier I (CET I) Additional Tier I (AT1)
Payout and Shares Buyback Dividend Yield1
Shares Buyback
Payout
10
Itaú Unibanco | Efficiency Ratio and Risk-Adjusted Efficiency Ratio2
11
Itaú Unibanco | Information Technology: Digital Transformation2
number of current account holders (in millions)
Individuals
1 Internet, mobile or SMS in the Retail Bank
Companies
Note: Share of digital channels in the total volumen
(R$) of transactions in the Retail Bank segment
Share of TransactionsThrough digital channels
New AccountsIndividuals accounts (in thousands)
Share of Digital Operations on the Retail Operating Revenues
Efficiency Ratio
71%
26%
2018
Brick and Mortar
Branches
vs
Digital Branches
Digital Branches Brick and Mortar BranchesBrick and Mortar BranchesAbreconta App
Use of Digital Channels1
12
Solid Macroeconomic Fundamentals and Expanding Banking Sector
Chile is one of the most developed economies in Latin America, sustained by solid macroeconomic fundamentals
Chile has one of the best sovereign ratings and among the lowest CDS spreads in Latin America
Colombia is also an attractive market with a diversify economy
The Chilean and the Colombian banking sectors have achieved high profitability and healthy assets quality with effective regulatory oversight
LatAm Banking Sector has potential to achieve further growth, particularly in the underpenetrated retail segments
Solid
Macroeconomic
Fundamentals
Unique control and support from a leading institution
Itaú Unibanco is the largest private financial institution in Brazil and a premier LatAm franchise
Itaú Corpbanca benefits from the strength of a ~US$88.3 BN1 market cap partner in its existing markets while enhancing
opportunities for growth abroad
Opportunity to leverage Itaú Unibanco’s strong global client relationships successful managing model
Itaú Corpbanca will be able to expand its banking products’ offering through segmentation and digitalization
Larger banking platform
Greater scale and resources to grow and compete more effectively in Chile and Colombia
Enhanced footprint in Chile and Colombia create a platform to expand in the region, particularly into Peru and Central America
5th largest private bank in Chile and 6th largest banking group in Colombia by total loans2
2
1
3
4Itaú CorpBanca will have a stronger financial profile and greater earnings power
Estimated pre-tax cost synergies between US$88MM and US$107MM approximately per year on a fully phased-in basis and
total one-time pre-tax integration costs of approximately US$85MM to occur during the first 3 years
Improved funding profile and substantial potential for revenue synergies
Additional cross-selling opportunities
Improved capital position opens room for further loan growth
Unique Control
and
Support
Banking Platform
with Larger Scale
Positive Impact
to Itaú Corpbanca
Itaú Corpbanca | Investment Case
1 As of December 31, 2018. Source: Economatica
2 – Rankings based on gross loans as reported to the Superintendencia de Bancos e Instituciones Financieras (SBIF), excluding loans from Itaú Corpbanca Colombia, and Superintendencia Financiera de Colombia (SFC).
Source: Company financials.
Itaú Corpbanca | Our Vision3
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
14
Itaú Corpbanca | Our Way3
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 performance
Generating 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.
15
Itaú Corpbanca | Highlights3
Regional footprint & main indicators 2 3
10.2% 2 4.9% 4Market Share
US$ 24.2 bn US$ 6.8 bn Loans 2 US$ 31.0 bn
5,685 5 3,494 6Headcount 2 9,179
202 161 Branches 2 363
US$ 32.8 bn US$ 9.6 bnAssets 2 US$ 42.4 bn
US$ 291 mn US$ 11 mn Recurring Net Income 2018 US$ 302 mn
13.3% 1.9% Recurring RoTAE 2018 7 11.0%
1 Ranking for assets and loans consider Grupo Aval as the combination of Banco de Bogotá, Occidente, Popular, AV Villas; 2 Consolidated information as of December 31, 2018; 3 Figures were converted at an exchange rate of 694.73 CLP/USD; 4 Consolidated information as of November 30, 2018; 5 Includes headcount of our New York branch and since 1Q’18 also from our RepOffices in Lima and Madrid; 6 Includes headcount of Itaú (Panamá); 7 Tangible Equity: Shareholders equity net of goodwill, intangibles from business combination and related deferred tax liabilities.
Sources: Itaú CorpBanca, SBIF and SFC.
16
We are key part of Itaú Unibanco’s Internationalization Process
Itaú Corpbanca | Increases Relevance Across Latin America3
(US$ Bn)
US$ Bn US$ Bn
4
Caixa
7. BCI
Santander
Bradesco3
9 Citibank
Banco do Brasil
8 BBVA
Scotiabank7
1
2
3
4
5
6
7
8
9
15
BCI
Grupo Aval
5. BBVA
Santander
Scotiabank7
Banco del Estado de Chile
1
2
3
5
6
7 Banco de Chile
Bancolombia
Itaú Corpbanca4
9
8
Itaú CorpBanca represents 23%
of Itaú Unibanco’s consolidated
loan portfolio8
Itaú Unibanco2
10Itaú Corpbanca4
Itaú LatAm6
1 Data as of September 30, 2018. Includes Brasil, México, Colombia, Chile, Argentina, Paraguay, Perú and Uruguay; 2 Includes Brasil, México, Argentina, Perú, Uruguay, Paraguay, Chile y Colombia; 3 In September 30, 2016 Bradesco begins to consolidate
HSBC Brasil in its publication; 4 Includes Chile y Colombia (Itaú Corpbanca Chile with ~US$35MMM in assets); 5 Data as of September 30, 2018. Includes Colombia, Chile, Argentina, Paraguay, Perú and Uruguay; 6 Includes Colombia, Chile, Argentina,
Paraguay, Perú and Uruguay; 7 As of September 30, 2018 Scotiabank figures consolidates with BBVA Chile after the latter merged with and into Scotiabank Chile; 8– Considering the consolidated loan portfolios of Itaú Unibanco and Itaú Corpbanca reported in
their respective 4Q’18 MD&As and a R$ 3.8773 / US$ and a Ch$ 694.73 / US$ foreign exchange rates as of 31.12.2018; 9– Since October 16, 2018, Itaú Unibanco holds a 38.14% 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.
Banks by Assets in Latin America1 Banks by Assets in South America (ex-Brazil)5
Loan portfolio as of Dec.18
363
398
316
102
341
76
319
161
60
45
53
54
57
53
45
76
78
60
55
50
17
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)
Itaú Corpbanca | Shareholders & Stock Market3
10.92%
8.85%
5.37%
4.83%
Securities Brokerage
ADRs Holders and Foreign Investors
Local Institutional Investors
Other minority shareholders
US$ 4.8 BnMarket Cap. (Dic. 31, 2018)
Source: Sell-side reports.
1 – For Itaú CorpBanca and BCI consider shareholders equity net of goodwill and intangibles from business combination.
Buy: 3
Hold: 6
Sell: 0
Sell-side rating:
Price-to-Book1
December 31, 2018
18
Average daily traded volumes 12 months
ended December 31, 2018
3.60
0.49
4.08
Santiago NY Total
(US$ million)
Itaú Corpbanca | Strong and Integrated Corporate Governance3
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
19
Itaú Corpbanca | Competitive Environment3
1 As of December 31, 2018; 2 As of November 30, 2018.Sources: SBIF and SFC.
2.8%
8.3%
11.7%
13.1%
21.0%
15.9%
17.1%
3.2%
10.2%
13.8%
13.9%
14.50%
16.9%
18.3%
Peer-F
Itaú CorpBanca
Peer-E
Peer-C
Estado
Peer-A
Peer-B
Loans Total Deposits
2.4%
4.6%
5.6%
12.0%
13.4%
23.0%
26.6%
2.9%
4.9%
5.2%
10.5%
15.0%
25.6%
25.7%
Peer-F
Itaú CorpBancaColombia
Peer-E
Peer-D
Peer-C
Peer-B
Peer-A
Loans Total Deposits
Market Share Colombia2Market Share Chile1
20
Solid Macroeconomic Fundamentals and Expanding Banking Sector
Chile is one of the most developed economies in Latin America, sustained by solid macroeconomic fundamentals
Chile has one of the best sovereign ratings and among the lowest CDS spreads in Latin America
Colombia is also an attractive market with a diversify economy
The Chilean and the Colombian banking sectors have achieved high profitability and healthy assets quality with effective regulatory oversight
LatAm Banking Sector has potential to achieve further growth, particularly in the underpenetrated retail segments
Solid
Macroeconomic
Fundamentals
Unique control and support from a leading institution
Itaú Unibanco is the largest private financial institution in Brazil and a premier LatAm franchise
Itaú Corpbanca benefits from the strength of a ~US$88.3 BN1 market cap partner in its existing markets while enhancing
opportunities for growth abroad
Opportunity to leverage Itaú Unibanco’s strong global client relationships successful managing model
Itaú Corpbanca will be able to expand its banking products’ offering through segmentation and digitalization
Larger banking platform
Greater scale and resources to grow and compete more effectively in Chile and Colombia
Enhanced footprint in Chile and Colombia create a platform to expand in the region, particularly into Peru and Central America
5th largest private bank in Chile and 6th largest banking group in Colombia by total loans2
2
1
3
4Itaú CorpBanca will have a stronger financial profile and greater earnings power
Estimated pre-tax cost synergies between US$88MM and US$107MM approximately per year on a fully phased-in basis and
total one-time pre-tax integration costs of approximately US$85MM to occur during the first 3 years
Improved funding profile and substantial potential for revenue synergies
Additional cross-selling opportunities
Improved capital position opens room for further loan growth
Unique Control
and
Support
Banking Platform
with Larger Scale
Positive Impact
to Itaú Corpbanca
Itaú Corpbanca | Investment Case
1 As of December 31, 2018. Source: Economatica
2 – Rankings based on gross loans as reported to the Superintendencia de Bancos e Instituciones Financieras (SBIF), excluding loans from Itaú Corpbanca Colombia, and Superintendencia Financiera de Colombia (SFC).
Source: Company financials.
Itaú Corpbanca | Current Scale Allows for Better Segmentation4
IndividualsBy monthly income(CLP MM)
CompaniesBy annual sales
(USD MM)
Investments > USD 1MM
Over $2.5
From $0.6 to $2.5
Up to $0.6
Private Bank
Personal Bank
Itaú Branches
Condell
Over $100
From $8 to $100
From $1 to $8
From $0.1 to $1
Corporate
Large
Middle
Very Small and Small
Wh
ole
sale
Ba
nk
ing
Re
tail
Ba
nk
ing
22
Fully implemented segmentation model with well defined identity and value proposition, aimed at optimizing service
level, satisfaction and profitability per client.
Branch profile in Chile
22 Itaú Personal Bank
123 Itaú Sucursales
56 Condell (Consumer Finance)
Itaú Personal Bank Itaú Sucursales
Itaú Corpbanca | Individuals Segmentation Overview4
23
Continuous improvement of
the look and feel of our digital
channels.
Review and improvement of benefits and
offers linked to stronger transactionality
and relationship.
Advancing with roll-out of new digital
services and offerings. Executing a
well defined pipeline of digital
solutions.
Itaú Corpbanca | Client Experience, Digital Banking and Value Offer 4
24
Increasing transactions
Higher adoption of our App
143more CLIENTS since Jan’17
# sales of retail installment loans
Itaú Corpbanca | Increasing Digital Transactions4
91%
23%
9%
77%
Apr'16 Dec'18
Sales through traditional channels Sales through Digital Channels (Internet + App)
25
7.5%
DEC 2014
7.4%
MAR 2015
7.2%
MAR 2016
7.1%
JUN 2017
7.7%
DEC 2017
12-months installment loans growth: Itau vs. Financial System
Installment Loans market share
Itaú Corpbanca | Business Growth in Retail 4
8.0%
MAR 2018 DEC 2018
7.9%
JUN 2018
8.0%
5.8%
10.4%
1.7%
14.9%
abr-16 jun-16 sep-16 dic-16 mar-17 jun-17 sep-17 dic-17 mar-18 jun-18 sep-18 dic-18
Financial System Itaú CorpBanca
SEP 2018
7.9%
26
Itaú Corpbanca | Business Mix4
1 Yearly average gross loans; 2 Loan interests by segments;Source: SBIF; Itaú Corpbanca; Team Analysis.
Loans breakdown by segment¹LTM Dec 2018, Ch$ Bn
13.4
7.0
13.8
7.0
Total
6.1 6.5
5.9 6.0
ItaúCorpbanca
AverageTop 3
Interest Rates
26,580
Consumer
Commercial
15,84827,463
Mortgage
29,233
∆ 10 bp
32 bp por mix
Peer-A Peer-B Peer-C
Current rate w/ top 3 mix
Current
Top 3
Top 3 rates w/ current mix
Mix difference explains most es the Yield
gap with the Top 3
100% =2
7.0
7.3
7.0
6.8
55.2%51.2%
64.7%
29.0%32.8%
24.3%
15.8% 16.0%11.0%
65.8%
23.8%
10.4%
27
People Digital Transformation
Implementation of Itaú
Unibanco’s management model
for the Retail Bank
Instrumentalization of relationship
managers with cockpits and tools
Development and reinforcement
of a client-centric culture
Focus on Client Satisfaction
Implementation of Itaú
Unibanco’s meritocracy model
Creation of talent attraction and
development programmes
Dress code flexibility for employees
Salas digitales
Advanced work methodologies and
tools
150+ releases and new functionalities
Back-end to front-end digitalization of
opening of digital accounts process
Itaú Corpbanca | Translating Strategy Into Action4
28
Itaú Corpbanca | Funding Mix4
Total Funding BreakdownInterest Rates
31,237 19,753
Debt Issued
34,564
Others1
100%34,986
Checking accounts
and deposits
2.8
2.3
3.2
3.0
Total
0.3 0.3
4.9 5.4
Itaú Corpbanca
1.1 1.1
Average Top 3
∆ 76 bp
51 bp por mix
Peer-A Peer-B Peer-C
Top 3 rates w/ current mix
Current rate w/ top 3 mix
Non-interest bearing liabilities are the main
reason for the gap when compared to the
3 players
Time Deposits
1 Others: Repurchases contracts, financial derivatives, bank obligations, letters of credit, other financial obligations, taxes, differed taxes, provisions, other liabilities.
LTM Dec 2018, Ch$ Bn
Top 3
Current
2.7
3.0
2.3
2.5
14.6% 17.0% 19.1% 20.9%
22.6%22.9% 16.1%
27.1%
33.7%
36.6%
34.5%
39.8%
29.1%23.6%
30.3%
12.2%
29
Itaú Corpbanca | Debt Spread Evolution4
Itaú CorpBanca has presented a noticeable convergence to peers
Spread vs.Peers1: 30-day (annualized) Spread vs.Peers1: 5-year (annualized)
1 – Average of top 3 peers in Chile. As of March 18, 2019; 2 – As of December 31, 2018.
Bonds in CLP & UF (expressed in USD MM) Spread vs.Peers1
Bonds issued in Chile LTM2
-0.25
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
jul-
11
oct
-11
ene-
12
abr-
12
jul-
12
oct
-12
ene-
13
abr-
13
jul-
13
oct
-13
ene-
14
abr-
14
jul-
14
oct
-14
ene-
15
abr-
15
jul-
15
oct
-15
ene-
16
abr-
16
jul-
16
oct
-16
ene-
17
abr-
17
jul-
17
oct
-17
ene-
18
abr-
18
jul-
18
oct
-18
ene-
19
Chile Santander BCI Itaú Corpbanca
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
oct
-11
ene-
12
abr-
12
jul-
12
oct
-12
ene-
13
abr-
13
jul-
13
oct
-13
ene-
14
abr-
14
jul-
14
oct
-14
ene-
15
abr-
15
jul-
15
oct
-15
ene-
16
abr-
16
jul-
16
oct
-16
ene-
17
abr-
17
jul-
17
oct
-17
ene-
18
abr-
18
jul-
18
oct
-18
ene-
19
Chile Santander BCI Corpbanca Itaú
114
197 197
118
157
118 118
4
118 118
39 43
144
79 96
197
101 79
01
-03
-20
17
01
-05
-20
17
01
-10
-20
17
01
-16
-20
17
01
-20
-20
17
01
-25
-20
17
02
-10
-20
17
02
-16
-20
17
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
15 bp10 bp
2 bp
11 bp 12 bp 10 bp13 bp
7 bp 8 bp 7 bp 5 bp 5 bp 7 bp5 bp 4 bp
9 bp
2 bp 6 bp
30
Itaú Corpbanca | Rating Upgrades in 2016 Contribute to Further Reduction in Cost of Funds4
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
A
A+
BBB+
A+
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
A+ A+
A
A
A
A
A-A-A-
BBB+
BBB BBB
BBB+
31
Agenda1. Investment Case
2. Financials
3. Key Strategic Drivers
4. 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.
33
HighlightsFull Year 2018
Consolidated
Ch$ 209.6 bn
Recurring Net Income Recurring RoTE Loans NPL 90 days
Net Interest Income Net Fees and Comissions Cost of Credit Operating Expenses
^241.0%
Chile
Ch$ 202.0 bn ^143.4%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
61.538.8 209.6
Consolidated
11.0% ^ 7.6p.p.
Chile
13.3% ^ 7.5p.p.
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
3.42.2 11.0
Consolidated
Ch$ 21.5 tn ^ 5.4%
Chile
Ch$ 16.8 tn ^ 5.5%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
20.421.0 21.5
Consolidated
2.1%
^
0.2p.p.
Chile
1.8%
^
0.3p.p.
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
2.31.7 2.1
Consolidated
Ch$ 847.0 bn ^14.2%
Chile
Ch$ 575.5 bn ^10.3%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
215.3197.0 226.5
Consolidated
Ch$ 186.1 ^ 4.8%
Chile
Ch$ 154.1 ^ 9.9%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
43.445.8 49.7
Consolidated
Ch$ 231.3 bn
^
38.9%
Chile
Ch$ 133.0 bn
^
44.4%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
378.7375.0 231.3
Consolidated
Ch$ 621.8 bn ^ 0.3%
Chile
Ch$ 428.0 bn ^ 2.2%
2018 vs. 2017
2018 vs. 2017
2016 2017 2018
620.0579.1 621.8
34
2012 2013 2014 2015 2016 2017 2018
GDP Growth
Inflation
Loan Growth1
Forecast 2 Actual
GDP
Loan Growth
Inflation
Interest Rate
GDP
Loan Growth
Inflation
Interest Rate3
3.3%
6 – 8%
2.5%
2.5%
2.5%
8 – 10%
3.3%
4.0%
4.0%
10.2%
2.6%
2.75%
2.7%
5.5%
3.2%
4.25%
12.3%
10.2% 10.7% 11.0%
5.6%4.5%
10.2%
2 – Itaú CorpBanca’s forecast for 2018 on March 1st 2018; 3 – End of period.1 – Pro Forma figures from 2015 to 2018 adjusted for the inclusion of loans from CMR and Walmart credit portfolios
5.3%4.0%
1.8% 2.3%1.3% 1.5%
4.0%
1.5%
3.0%
4.6% 4.4%
2.7% 2.3% 2.6%
35
Financials | Global Macroeconomic Backdrop
Financials | 2018 Forecast
Loan Growth
Increase Retail in Loan Mix1
Cost of Credit Risk2
Expenses in line with Inflation3
Break even in Colombia4
Realized Expected
5.5%6.0% 8.0%
0.7% 0.8%
0.8%
2.2%
Ch$ 7.6 bn
+89 bp
Dic-17 Dic-18
32.5% 33.3%
2.6%
Ch$ 0
1 – Retail loans refers to Mortgage and Consumer loan ; 2 – Net provision for credit & counterparty risks. ; 3 – Adjusted Non-Interest Expenses. ; 4 – Managerial Net Income Attributable to Shareholders.
36
Financials | Managerial Return on Tangible Equity
2.2%3.4%
11.0%
0.1%0.2%
0.8%
2016 2017 2018
6.2% 5.8%
13.3%
0.4% 0.4%
1.0%
2016 2017 2018
Itaú Corpbanca Itaú Corpbanca Chile
37
Financials | Loan Growth
Loan Growth (YoY ; %)
6.0% 8.0%
Forecast: Loan Growth
5.5%Realized
Non-Core Portfolio
in b illion of Chilean pesos
Dec-18Legal Day
OneVar ($) CAGR (%)
CAGR (%)
Financial
System
Commercial (core) 10,975 9,803 1,172 4.2% 6.3%
Commercial (non-core) 225 1,916 (1,691) -54.1% n.a.
Mortgage 3,853 3,289 563 5.9% 9.6%
Consumer 1,751 1,314 437 11.0% 9.1%
Total 16,804 16,323 481 1.1% 7.1%
Total (ex non-core portfolio) 16,579 14,406 2,173 5.2%
9,803 10,975
1,916 225
3,289 3,853
1,314 1,751
16,323 16,804
Legal Day One Dec-18
Commercial (core) Commercial (non-core) Mortgage Consumer
5.5%4.2%
6.0%
13.4%
-10%
-5%
0%
5%
10%
15%
20%
Total Loans Commercial Mortgage Consumer
38
Financials | Portfolio MixForecast: Increase Retail in Loan Mix
89 bpRealized
Portfolio Mix (%)
67.5%
22.8%
9.7%
2017
Retail: 32.5%
Retail: 33.3%
Market Share (Dec.2018)
7.1%
Commercial
Mortgage
Consumer
8.0%
12.2%
Total Loans
10.0%
+22 bp
-26 bp
-71 bp
-43 bp
Share 12-
months
+89 bp
66.7%
22.9%
10.4%
2018
39
Financials | Cost of Credit Risk and Credit Quality0.7% 0.8%
Forecast: Cost of Credit Risk
0.8%Realized
Cost of Credit Coverage
Non Perfoming Loans (90+ days)
70.3 108.2
30.4 26.0 28.6 48.1
3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18
239.4
133.0
2017 2018
1.8%
2.7%
0.8% 0.6% 0.7%1.2%
1.5%
0.8%
In Ch$ Billion
239,4
133,0
2017 2018
Cost of Credit Risk
108%102% 100%
105%
124% 127%
2.0%
2.1% 2.1%2.2% 2.1% 2.1%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
NPL90 Coverage Provisions / Loans
Commercial (exStudent Loans) Mortgage Consumer
1.4%
1.8% 1.8% 1.8%1.6%
1.4%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
2.0% 1.9%1.8%
1.5%
1.8% 1.7%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
2.4%
2.1%1.9%
1.8% 1.7% 1.7%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
40
Financials | Compared Evolution of Total Expenses
15.6%
7.4%
19.1%
8.1%
16.1%
5.3%
1.4%3.0% 2.2%
18.9%
3.0%
8.1% 8.4%
16.3%
8.3%
4.5% 5.4%
8.1%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Itaú CorpBanca Chile Chilean Financial System
Average: 11.9% ; 10.5%
Average: 2.2% ; 6.0%
Adjusted Non-Interest Expenses annualized growth (%)
Forecast: Expenses in line with Inflation
2.2%Realized
2.6%
In millon of Chilean Pesos 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Non-Interest Expenses - Itaú CorpBanca1 220 255 275 402 545 732 736 801 766 791
(-) Itaú CorpBanca Colombia - - - (74) (191) (290) (253) (253) (274) (273)
Total Non-Interest Expenses - Itaú CorpBanca Chile 220 255 275 328 354 441 483 548 492 518
(-) Credit risk related provisions2 (3) (4) (4) (6) (4) (4) (2) (11) (9) (16)
(-) Non-recurring expenses - - - - - (32) (54) (101) (31) (39)
(-) Depreciation y amortization3 (10) (12) (14) (16) (20) (22) (24) (26) (29) (32)
Adjusted Non-Interest Expenses - Itaú CorpBanca Chile 207 239 257 306 331 384 404 410 422 432
Annual growth rate 15.6% 7.4% 19.1% 8.1% 16.1% 5.3% 1.4% 3.0% 2.2%
Adjusted Non-Interest Expenses - Chilean Financial System 2,254 2,680 2,761 2,983 3,233 3,760 4,073 4,255 4,484 4,848
Annual growth rate 18.9% 3.0% 8.1% 8.4% 16.3% 8.3% 4.5% 5.4% 8.1%
1 – Includes commissions expenses, personnel expenses, administrative expenses, depreciation and amortization, impairment charges and other operational expenses. All data is Proforma 2 – Consisting of provisions for assets received in lieau of payment and provisions for
Country risk. 3 – Does not include amortization of intangibles generated through business combination, already considered as a non-recurring expense. 41
Financials | Estimated Synergies Captured to Date
207 239 257
306 331
384 404 410 422 432
6 12 9
2009 2010 2011 2012 2013 2014 2015 aumento 2016 aumento 2017 aumento 2018
207 239 257
306 331 384 404 422 445
481 18
23 36
2009 2010 2011 2012 2013 2014 2015 aumento 2016 aumento 2017 aumento 2018
≠12 10
Ch$ 49 billion or US$ 76 million1 in synergies
captured in the first three years
Adjusted Total Expenses evolution – actual1 (Ch$ Bln)
Adjusted Total Expenses evolution – System growth rates1 (Ch$ Bln)
≠
+1.4% +3.5%
+4.6%+5.6%
27≠
+2.2%
+8.1%
Forecast: Expenses in line with Inflation
2.2%Realized
2.6%
1 – Exchange rate of Ch$ 651.79 / 1 US$, as of February 28th, 2019As presented in our April 21st, 2016 Investor Update Conference Call to discuss different topics of the merger.
42
Financials | Liquidity Risk
Regulatory Liquidity: Mismatch vs. Peers in Chile
Ch$ BnLímit
Capital
Básico¹
Total gap -
30 days
Total gap -
90 days
Total gap -
30 days
Total gap -
90 days
Peer-A 100% 3,304 1,421 2,032 43% 31%
Peer-B 100% 3,187 885 2,605 28% 41%
Peer-C 100% 3,407 707 1,801 21% 26%
Estado 100% 1,693 1,151 2,384 68% 70%
Itaú CorpBanca (Chile only) 100% 3,325 1,109 1,349 33% 20%
a
Adjusted liquidity gap Use of limit
Itaú CorpBanca has lowest maturity mismatches compared with peers
• Liquidity: high liquidity standards are an important driver of
our balance sheet management both in Chile and in
Colombia.
BIS III Liquidity Framework – LCR2
1 – According to SBIF BIS I definitions. 2 – LCR: Liquidity Coverage Ratio calculated according to BIS III rules. Regulatory LCR ratios are still under construction in Chile.
Source: Quarterly liquidity status report as of December 31, 2018 for each bank available in the corresponding websites.
20%31%
41%26%
70%
Itaú CorpBanca(Chile only)
Peer -A Peer -B Peer-C Estado
139.2%
145.0%
70%
90%
110%
130%
150%
170%
190%
210%
04-2
016
05-2
016
06-2
016
07-2
016
08-2
016
09-2
016
10-2
016
11-2
016
12-2
016
01-2
017
02-2
017
03-2
017
04-2
017
05-2
017
06-2
017
07-2
017
08-2
017
09-2
017
10-2
017
11-2
017
12-2
017
01-2
018
02-2
018
03-2
018
04-2
018
05-2
018
06-2
018
07-2
018
08-2
018
09-2
018
10-2
018
11-2
018
12-2
018
01-2
019
LCR CH Límite LCR
43
Financials | Regulatory Capital Composition Under Current Ley General de Bancos
Notes:
1 Capital Básico = Core Capital, according to SBIF BIS I definitions; includes corresponding adjustments from merger effects of the business combination
2 Patrimonio efectivo = Regulatory Capital, according to SBIF BIS I definitions
3 BIS ratio = Patrimonio efectivo / RWA, according to SBIF BIS I definitions
Ch$ Tn*
1.04
Capital
Básico1
Subord.
BondMinority
Interest
Patrimonio
Efectivo2
Goodwill
*Data as of December 31, 2018
Source: Itaú Corpbanca consolidated balance sheet
3.32
0.22
3.42
14.7% BIS Ratio3
1.18
44
Financials | Current Regulatory Capital Ratio & Estimated BIS III Capital Ratio
Current regulatory capital ratio evolution (LGB) Estimated1 BIS III capital ratio (new LGB)
Tier I
Tier II
1 – Reflects our best estimate for the impact of the implementation of the new Banking Law in Chile. The actual impact depends on definitions still to be set by the Comision para el Mercado Financiero (CMF).
14.4% 14.7%
11 bp 6 bp 6 bp 4 bp
Sep.18 Capital Basico SubordinatedBonds
RWA Other Dec.18
10.2%
7.8%
-2.4%
+ / -
Regulatory Capital
Ratio (Dec.18)
Other Intangible Assets
/ Net Deferred Taxes
Net effect of changes
in RWA
Estimated Fully Loaded
BIS III Capital
4.5%
3.9%
-0.6%
14.7%
11.1%
45
Financials | Results in ColombiaForecast: Break-even in Colombia
Ch$ 7.6 bnRealized
Ch$ 0
40.9
(39.6)
(21.5)
7.6
2015 2016 2017 2018
Managerial Net Income NIM
Cost of Credit
Efficiency Ratio
4.0%
3.3%
3.7%
4.4%
2015 2016 2017 2018
45.2%
56.5%
62.4% 60.1%
2015 2016 2017 2018
2.3%
2.9%2.7%
2.0%
2015 2016 2017 2018
In Ch$ Billion
46
Financials | 2019 Macroeconomic Outlook
2016
GDP
Loan Growth
Inflation
Interest Rate
2017 2018 2019 2016 2017 2018 2019
1.3% 1.5%
4.0%3.2%
2.1%1.4%
2.7% 3.3%
5.6%4.5%
10.2% 8-10%12.2%
6.1% 5.8%
8-10%
2.7%
2.3%2.6% 2.6%
5.8%
4.1%3.2% 3.0%
3.50%
2.50% 2.75%3.25%
7.50
4.75%4.25%
4.50%
47
Financials | Perspectives for 2019
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
48
Agenda1. Investment Case
2. Financials
3. Key Strategic Drivers
4. Appendix
Key Strategic Drivers 2019
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
Digital Transformation
Client Centricity
Efficiency
5
6
Capital Generation
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
Efficiently managing capital allocation
through adequate cost of equity
Value creation and RAROC metrics and
tools as a driver throughout the organization
• Continued and sustainable rebound in
results
• Resume expansion in business volumes
• Advance with the implementation of retail
and wholesale strategies
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
4
50
Agenda1. Investment Case
2. Financials
3. Key Strategic Drivers
4. Appendix
Financials | Average Tangible Equity Breakdown
All other Assets: Ch$ 28,057
Ch$ 21,581
Ch $6,476
All other Liabilities: Ch$ 25,897
Ch$ 20,005
Ch$ 5,892
Asociado a Intangibles PPA: Ch$ 40
Minority Interest ex GW and PPA
Intangibles: Ch$ 190
Assets: 29,513
Liabilities: 25,980
Minority Interest: 222
4Q’18 Average Balance (Ch$ Tn)
Managerial Tangible Equity: Ch$ 1,969
Ch$ 1,574
Ch$ 395
Shareholders’ Equity: 3,311
Managerial Tang. Equity:
Recurring Results:
Recurring RoTE:
Ch$ 1,969 Ch$ 1,574 Ch$ 395
Ch$ 43.8 Ch$ 37.1 Ch$ 6.6
÷ ÷ ÷
8.9% 9.4% 6.7%
= = =
Goodwill: Ch$ 1,180
Ch$ 942
Ch$ 237
Intangibles from PPA: Ch$ 276
Ch$ 134
Ch$ 142
Deferred taxes asociated with
intangibles from PPA: Ch$ 83
Ch$ 36
Ch$ 47
Asociated w/ PPA Intangibles: Ch$ 32
GW and PPA Intangibles: Ch$ 1,341
Ch$ 1,041
Ch$ 300
52
Itaú Corpbanca | 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%. 53
Our Bank | Itaú Corpbanca History
54
Itaú Corpbanca
LarrainVial | 13th Andean &
Southern Cone Conference
Presentation
March 19 – 20, 2019 | Santiago