Banco Itau Chile · BCS:ITAUCL
Banco Itau Chile — Itaú CorpBanca — Q3 2016 Earnings Presentation
17 slides from Banco Itau Chile's earnings presentation, November 2016
Slide 1: Itaú CorpBanca 3rd Quarter 2016 Earnings Review
Itaú CorpBanca 3rd Quarter 2016 | Earnings Review Conference Call Gabriel Moura Chief Financial Officer Claudia Labbé Head of Investor Relations
Slide 2: Disclaimers
Disclaimers Itaú CorpBanca is the entity resulting from the merger of Banco Itaú Chile (Itaú Chile) with and into CorpBanca on April 1, 2016 (“the Merger”). After the Merger, the surviving entity’s name changed to “Itaú CorpBanca”. The legal acquisition of Itaú Chile by CorpBanca is deemed a reverse
Slide 3: Macroeconomic Backdrop
Macroeconomic Backdrop GDP Growth (%) Interest Rates (EOP) - % 6.6 5.8 5.8 7.8 5.5 4.9 5.8 6.0 4.4 4.0 4.0 4.0 5.3 5.0 4.8 4.5 4.5 3.1 4.3 2.7 3.3 3.0 3.3 3.5 3.5 2.3 3.0 3.0 1.9 2.0 2.0 1.5 2010 2011 2012 2013 2014 2015 2016(e) 2017(e) 2010 2011 2012 2013 2014 2015 2016(e) 2017(e) Chile Colombia Ch
Slide 4: Managerial Recurring Net Income (Reconciliation)
Managerial Recurring Net Income (Reconciliation) in million of Chilean Pesos 3Q'16 2Q'16 3Q'15 9M'16 9M'15 Net Income Attributable to Shareholders (Accounting) 19,239 28,544 23,922 53,921 66,631 (+) Pro Forma consolidation effects - - 62,713 -25,939 159,180 Pro Forma Net Income Attributable to Share
Slide 5: Chile <> Colombia Cross Border Adjustments
Chile <> Colombia Cross Border Adjustments managerial reclassifications Pro forma Amortization of Managerial 9M'16 Accounting Net Non recurring Recurrung Net Cost of Investment Cost of Fiscal consolidation events Hedge Hedge Colombia's Recurring Net in million of Chilean pesos Income effects Income
Slide 6: P&L
P&L Change Change Change in million of Chilean Pesos 3Q'16 2Q'16 % $ 3Q'15 % $ 9M'16 9M'15 % $ Net interest income 121,512 139,343 -12.8% -17,831 152,110 -20.1% -30,598 390,308 418,756 -6.8% -28,449 Net fee and commission income 34,580 33,354 3.7% 1,226 39,753 -13.0% -5,173 99,108 124,880 -20.6% -25
Slide 7: Loan Portfolio
Loan Portfolio . Total Loans (CP$ Tln) Market share D % Loans Sep16/Sep15 Δ+ 2.4% ITCB in Chile Banking Industry Δ- 0.2% 2.4% 6.8% 16.4 16.3 16.4 16.3 2.5% 4.8% 16.0 2.4% 11.2% 1.3 1.3 1.3 1.3 1.3 1.5% 7.2% 3.2 3.3 3.3 3.3 3.3 14.7% 14.8% 14.7% 14.5% 14.4% 12.3% 12.3% 12.1% 12.0% 11.8% 9.2% 9.0% 11.
Slide 8: Net Interest Margin
Net Interest Margin Itaú CorpBanca Chilean Financial System 4,0% 3,8% 3,6% 3,7% 3,6% 3.3% 3.0% 2.9% 3,3% 3,3% 3,3% 3,3% 3,3% 2.7% 2.6% -1 bp 2.3% 2.3% 2.4% 2.4% 2.2% +2 bp 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 Pág. 8
Slide 9: Loan Loss Provisions Expense
Loan Loss Provisions Expense LLP Expense ratios (annualized) 45.1% 18.8% 19.9% 15.7% 13.9% 13.0% 11.4% 0.7% 0.8% 0.7% 0.6% 1.8% 0.8% 0.9% 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 LLP Expense / Average Loans LLP Expense / Net Operating Profit Before Loan Losses LLP Expense (CLP Bln) 72.0 33.2 35.2 2
Slide 10: Credit Quality
Credit Quality Total Loans Commercial Loans 128% 133% 162% 125% 141% 147% 110% 115% 109% 109% 117% 126% 117% 120% 50% 50% 50% 52% 52% 54% 54% 55% 54% 54% 46% 46% 46% 47% 45% 44% 46% 45% 44% 48% 45% 44% 43% 45% 45% 43% 47% 44% 4.3% 4.5% 3.9% 3.8% 4.1% 4.1% 3.2% 3.4% 3.3% 3.2% 3.2% 3.4% 3.3% 3.2% 1.3%
Slide 11: Operating Expense and Efficiency
Operating Expense and Efficiency in million of Chilean Pesos 3Q'16 2Q'16 change 3Q'15 change 9M'16 9M'15 change Personnel Expenses (48.916) (50.389) 1.474 -2,9% (51.596) 2.680 -5,2% (147.849) (149.444) 1.595 -1,1% Administrative Expenses (37.844) (33.329) (4.515) 13,5% (33.666) (4.178) 12,4% (113.33
Slide 12: Loan Portfolio
Loan Portfolio . Total Loans in constant currency¹ (CP$ Tln) Market Share Δ+ 0.2% D % Loans Aug16/Sep15 ITCB in Colombia Banking Industry Δ+ 0.0% 1.4% 8.5% 5.2 5.2 5.3 5.3 5.3 2.4% 6.7% 5.2 5.2 5.2 5.3 5.6% 15.2% 5.1 0.0% 11.0% 1.2 1.2 1.1 1.1 1.1 0.5 0.5 0.5 0.5 0.5 7.0% 6.9% 6.9% 6.8% 6.7% 6.2% 6.
Slide 13: Net Interest Margin
Net Interest Margin¹ 3Q’16 / 3Q’15 3Q’16 / 2Q’16 9.9% 8.7% 9.2% +202 bp +73 bp 7.9% 8.3% 4.1% 4.0% 3.6% 3.2% 3.2% -82 bp +1 bp 3Q15 4Q15 1Q16 2Q16 3Q16 -3.8% -4.2% -4.9% -266 bp -76 bp -5.6% -6.4% Net Interest Margin (NIM) Interest Income / Avg. Interest Earning Assets Interest Expense / Avg. Intere
Slide 14: Loan Loss Provisions Expense
Loan Loss Provisions Expense LLP Expense ratios (annualized) 50.6% 36.9% 49.4% 36.5% 31.7% 31.6% 25.9% 2.2% 2.6% 2.4% 3.0% 3.3% 2.4% 2.9% 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 LLP Expense / Average Loans LLP Expense / Net Operating Profit Before Loan Losses LLP Expense (CLP Bln – constant curren
Slide 15: Operating Expense and Efficiency
Operating Expense¹ and Efficiency in million of Chilean Pesos - Constant Currency¹ 3Q'16 2Q'16 change 3Q'15 change 9M'16 9M'15 change Personnel Expenses (20,345) (18,117) (2,227) 12.3% (19,862) (483) 2.4% (58,482) (57,811) (672) 1.2% Administrative Expenses (27,012) (25,976) (1,036) 4.0% (25,158) (1
Slide 16: Merger Update – Client and Branch Migration
Merger Update – Client and Branch Migration Client base migration 1° 2° 3° Migrations executed 16 Ago 11 Oct 24 Oct # of Branches migrated 2 6 10 18 branches migrated Migration waves Visual Identity Itaú Personnal Bank Itaú Sucursales Pág. 16
Slide 17: Merger Update – Board of Directors and Senior Management
Merger Update – Board of Directors and Senior Management Board of Directors Chairman Jorge Andrés Saieh Guzmán Vice Chairman Ricardo Villela Marino Board Members Alternate Board Members Candido Botelho Bracher Fernando Concha Ureta Camilo Morales Riquelme Boris Buvinic Guerovich Jorge Selume Zaror J