Banco Itau Chile · BCS:ITAUCL
Banco Itau Chile — Investor Presentation (December 2013)
28 slides from Banco Itau Chile's investor presentation, December 2013
Slide 1: Banco Itaú Chile
Banco Itaú Chile As of December 31, 2013
Slide 2: Agenda
Agenda I. Itaú Unibanco Holding - Overview II. Chilean Economy, Banking Sector and Regulatory Framework III. Banco Itaú Chile Overview IV. Financial Highlights 2
Slide 3: Itaú Unibanco Holding at a Glance
Itaú Unibanco Holding at a Glance Leading position in Brazil through key competitive strengths Financial Highlights and Ratios As of and for the year ended December 2013 US$ 67.3 billion market cap (1) 95,696 employees in Brazil and abroad Highlights 4,991 branches and CSBs in Brazil and abroa
Slide 4: Footprint in Latin America – December 2013
Footprint in Latin America – December 2013 4
Slide 5: Itaú Unibanco Holding and the Largest Banks by Market Cap
Itaú Unibanco Holding and the Largest Banks by Market Cap 5
Slide 6: Agenda
Agenda I. Itaú Unibanco Holding - Overview II. Chilean Economy, Banking Sector and Regulatory Framework III. Banco Itaú Chile Overview IV. Financial Highlights 6
Slide 7: Chile - Economic Highlights
Chile - Economic Highlights A small but open economy. Free trade agreements with more than 80% of both global GDP and countries. Trade volumes represent 82% of GDP, copper accounts for nearly 54% of exports and 25% of total exports is destined for China. GDP per capita is the highest in the re
Slide 8: Chilean Economy – Key Indicators
10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 10% 4% 5% 6% 7% 8% 9% Mar-10 Jun-03 Jun-10 Mar-04 Sep-10 Dec-04 Dec-10 Sep-05 Mar-11 Jun-06 Jun-11 Mar-07 Sep-11 Dec-07 Dec-11 Sep-08 Mar-12 Jun-09 Jun-12 Mar-10 Sep-12 Dec-10 Source: Central Bank of Chile, IUB, EconsultRS Dec-12 Mar-13 Sep-11 Unemployment
Slide 9: Chilean Economy – Key Indicators
Chilean Economy – Key Indicators GDP Per Capita (1980 = 100) Central Government Gross and Net Debt (% of GDP) 300 50% Argentina Gross Debt 250 Brazil 40% Chile Net Debt Colombia 30% Mexico 200 20% Peru 10% 150 0% -10% 100 -20% -30% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 200
Slide 10: The Chilean Financial System
The Chilean Financial System The financial system is sound, competitive, well diversified and highly integrated into the global financial system Banks are well capitalized, liquid, and consistently profitable Significant core deposits limit funding risks One of the highest levels of loan pen
Slide 11: Banks – Strong Regulatory Framework
Banks – Strong Regulatory Framework The banking industry in Chile is recognized as one of the most solid and well- regulated worldwide Constant tracking of liquidity and solvency ratios Credit risk is managed with high standards and strong supervision Annual audits by the banking regulator a
Slide 12: The Chilean Banking Sector
The Chilean Banking Sector Total Loans/GDP Loan Portfolio Breakdown 79% 74% 84% 83% 74% 79% 13% 12% 129 137 12% 13% 23% 25% 114 106 12% 12% 21% 100 102 92 89 89 20% 20% (Ch$ Trn) 21% 62% 74 70 68 67% 64% 68% 67% 67% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 GDP Total Loans Total Lo
Slide 13: Agenda
Agenda I. Itaú Unibanco Holding - Overview II. Chilean Economy, Banking Sector and Regulatory Framework III. Banco Itaú Chile Overview IV. Financial Highlights 13
Slide 14: Historic Milestones
Historic Milestones 1979 Banco de Boston started activities in Chile, focusing on Multinational Companies and Treasury Business 1997 Personal & Retail Banking launched and the brand changed to BankBoston, following the merger with Baybank. Loan Portfolio US$500 MM, Market Share 1.1%, Net Profit
Slide 15: Corporate Structure
Corporate Structure Itaú Unibanco Holding S.A. Itaú Chile Holdings, Inc. (100%) 15
Slide 16: Banco Itaú Chile Overview
Banco Itaú Chile Overview 7th largest bank in Chile out of a total of 25 banks. Total Assets: US$13.0 Bn. Banco Itaú Chile Rating Local International Market Share Fitch: AA Stable Loans: 4.7% (5% exp. Corp Colombia) Feller: AA- Positive Deposits: 4.5% Moody's: A3/p-2 Stable Assets: 4.3%
Slide 17: Banco Itaú Chile Highlights
Banco Itaú Chile Highlights Banco Itaú Chile is the largest overseas subsidiary of Itaú Unibanco 100% retained earnings - continuous building of capitalization Additional capital injection by Itaú Unibanco of US$50 MM in 2008 and US$150 MM in October 2012 Diversified line of products and servi
Slide 18: Business Overview
Business Overview Retail Banking Commercial Banking Includes Retail and Small Businesses (SME) Approximately 124K clients and a network of 96 Companies with annual sales from US$200K up branches to US$100 MM One of the largest specialized footprint in the Approximately 5K clients premier s
Slide 19: Branch Network
Banco Itaú Chile – Branch Network Branches 96 91 89 Iquique Calama 75 70 67 Antofagasta 60 51 Copiapó La Serena Valparaíso Santiago 2006 2007 2008 2009 2010 2011 2012 2013 4.943 km. Rancagua Curicó Talca Chillán Concepción Temuco Los Angeles Total Retail Loans (U$ Bn) 3.6 Valdivia Puerto Montt 3.2 C
Slide 20: Assets and Liabilities Structure vs. Banking Sector
Banco Itaú Chile vs. Banking Sector Assets and Liabilities Structure Banco Itaú Chile Banking Sector (US$13.0 Bn) (US$303.09 Bn) 1% 3% 6% 3%1% 9% 12% 15% Assets 71% 78% Cash Loans Investments Others Fixed Assets 12% 12% Liabilities & Equity 16% 20% 10% 9% 3% 59% 46% 10% 3% 6% DDA Deposits Bank Borro
Slide 21: Assets and Liabilities Structure
Banco Itaú Chile Assets and Liabilities Structure Loan Portfolio (US$ Bn) Loan Portfolio - Breakdown & Market Share 4.70% Banco Itaú Chile Banking Sector CAGR 21% 4.20% 10.2 3.95% 8.9 3.5% 3.23% 3.2% 3.04% 6.9 32% 2.60% 34% 38% 38% 2.00% 5.2 4.8 4.5 3.9 2.7 2.2 66% 68% 62% 62% Dec-05 Dec-06 Dec-07 D
Slide 22: Revenues: Growth & Segment Breakdown
Banco Itaú Chile Revenues: Growth & Segment Breakdown Financial Margin (US$MM) 542.51 455.3 362.4 340.7 313.6 311.4 219.4 166.4 2006 2007 2008 2009 2010 2011 2012 2013 Financial Margen= Net Interest + Net Fees + FX + loan recovery + other income Other Revenues – 2013 Breakdown Treasury 6% 8% Corpora
Slide 23: Profitability vs. Banking Sector
Banco Itaú Chile vs. Banking Sector Profitability ROE ROA 1.5% 18.6% 18.0% 18.6% 1.5% 17.4% 1.4% 16.2% 1.3% 15.2% 1.3% 14.7% 1.2% 1.4% 14.9% 13.3% 13.3% 1.2% 1.1% 1.2% 12.0% 1.0% 1.2% 1.2% 10.9% 1.1% 10.4% 13.9% 13.0% 0.9% 11.0% 0.9% 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2
Slide 24: Capital Adequacy Ratios vs. Banking Sector
Banco Itaú Chile vs. Banking Sector Capital Adequacy Ratios Risk Weighted Assets to Equity 14.9% 14.1% 13.9% 14.3% 13.3% 13.3% 13.4% 12.3% 11.7% 11.0% 2009 2010 2011 2012 2013 Banco Itau Chile Banking Sector BIS Ratio (%) – Chilean Banks (Dec-13) 50.0 50.0 Use of Subordinated Debt 50.0 48.9 (% of Eq
Slide 25: Efficiency Ratios & Net Profit
Banco Itaú Chile vs. Banking Sector Efficiency Ratios & Net Profit 64.1% Operating Ratio Operating Expenses / Assets (Operating Expenses / Gross Financial Margin) 58.8% 55.3% 55.2% 3.1% 50.4% 2.9% 49.5% 49.7% 49.2% 49.0% 2.5% 2.6% 46.7% 50.6% 2.5% 2.4% 2.3% 2.3% 49.9% 2.3% 47.6% 48.2% 45.9% 2.3% 2.3
Slide 26: Asset Quality vs. Banking Sector
Banco Itaú Chile vs. Banking Sector Asset Quality - Past Due Loans* / Total Loans Loan Loss Reserves / Past Due Loans* 2.90% 2.66% 2.53% 178% 175% 170% 157% 2.10% 1.97% 142% 1.42% 108% 94% 92% 121% 1.19% 82% 1.13% 0.92% 0.90% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Banco Itau Chile Banking
Slide 27: Agenda
Agenda I. Itaú Unibanco Holding - Overview II. Chilean Economy, Banking Sector and Regulatory Framework III. Banco Itaú Chile Overview IV. Financial Highlights 27
Slide 28: Financial Highlights
Financial Highlights BANCO ITAU CHILE AND SUBSIDIARES 2010 2011 2012 2013 Dec-13 (US$MM) Total Assets 3.406.956 4.452.399 5.447.507 6.809.542 13.001 Total Loans 2.609.740 3.476.958 4.276.182 5.414.406 10.338 Allowance for Loan Loss 52.492 56.681 67.057 87.076 166 Total Deposit 2.275.413 3.070.764 3.
Banco Itaú Chile — Investor Presentation (December 2013) on 6ix