January 2017
Itaú CorpBanca Institutional Presentation
Agenda
3. CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 3 |
Recurring Net Income 3Q16 (3)
Recurring Net Income 2015 (2)
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 2Q16 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 2Q16 MD&A – Executive Summary. (6) See “Efficiency Ratio” slides for criteria. (7) This ratio is our current number which considers the phase in regulation. See “Capital Ratios” slide for more details.
• US$ 65.2 billion market cap 1
• 95,984 employees in Brazil and abroad
• 5,119 branches and CSBs in Brazil and abroad
• 45,859 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
Global Footprint of Brazil’s Top Private Sector Bank |September 30, 2016
Financial Highlights and Ratios As of Septiembre 30, 2016
Source: Bloomberg.
Itaú Unibanco | At a Glance
Highlights
Total Assets BRL 1,399.1 Bln
Total Loans¹ BRL 567.7 Bln
Stockholders’ Equity BRL 114.7 Bln
Recurring Net Income 2015² BRL 23.8 Bln
Recurring Net Income 3Q16³ BRL 5.6 Bln
Long Term Foreign Currency Moody´s: Ba3
(Itaú Unibanco Holding) Fitch: BB+
Financial Ratios
Recurring ROE 2015⁴ 23.9%
Recurring ROE 3Q16⁵ 19.9%
Efficiency Ratio 4Q15⁶ 46.3%
Efficiency Ratio 3Q16⁶ 48.6%
BIS III CET I Ratio⁷ 15.7%
Total Assets
Total Loans(1)
Stockholders’ Equity
Long Term Foreign Currency
Recurring ROE 2015(4)
Recurring ROE 3Q16(5)
Efficiency Ratio 4Q15(6)
Efficiency Ratio 3Q16(6)
| 4 | 1 As od Septiember 30, 2016.
• Approximately 32.1 million credit card accounts and
26.0 million debit card accounts;
• Leader in Brazilian credit card market, extensive
number of joint ventures and partnerships with
retailers.
• Total portfolio for individuals of R$ 15,9 billion;
• Lease and finance through over 12 thousand
dealers;
• In the 3Q16 the new Vehicle Concessions to
individuals reached R$ 2,140 million.
• One of the largest players based on direct
premiums;
• Association with Porto Seguro for auto and
residential insurance;
• The result in 3Q16 totaled R$ 683 million.
• Small and Medium Enterprises with annual sales up to
R$ 30 million;
• 4.558 branches and client service branches
and 44.631 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 R$ 200 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 R$ 888 billion;
• Leader in Private banking services in Latin
America.
• Corporate clients with annual sales from R$ 30 million
to R$ 200 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
| 6 |
Branches and CSBs : 87
ATMs: 178
Employees : 1,670
Argentina
Sucursales: 225
ATMs: 501
Employees : 6,182
Chile
Branches and CSBs: 4,574
ATMs: 44,631
Employees : 81,737
Brasil
Colombia¹
Branches and CSBs : 170
ATMs: 180
Employees: 3,750
Branches and CSBs : 24
Puntos de Servicio OCA : 36
ATMs: 58
Employees : 1,144
Uruguay
Itaú Unibanco | Real Footprint in Latin America September 2016
CIB
Minorista
México | CIB
Employees: 31
(1) Considers employees and branches from Panama.
Branches and CSBs : 39
Non-Bank
Correspondents : 48
ATMs: 311
Employees : 806
Paraguay
Peru
Representative
office IBBA
Panamá
| 7 |
Total Assets1 | Evolution and Breakdown
R$ billion
(1) Net of Allowance for Loan Losses; (2) Gross Loans, including endorsements and sureties
Cash, Cash Equivalents
and Short-term Interbank
Deposits
Securities
Loans2
Other
Permanent
Loans Breakdown
31.0%
10.2%
2.8%4.9%
9.8%
24.8%
8.5%
8.0%
Corporate
SME's
Vehicles
Personal Loans
Credit Cards
Latin America
Mortgage (includes individuals andcompanies)
Payroll Loans to Individuals + BMG
30.9%
37.9%
18.7%
7.4%5.1%
Domestic Government Bonds
Pension Plans Fund Quotas
Corporate Securities
Derivatives
International Government Bonds
27.0
177.9
456.2
357.5
380.4
1,297.8
1,474.81,399.1
2014 2015 3Q16
32.6%
27.2%
25.6%
12.7%
1.9%
Domestic Government Bonds
Pension Plans Fund Quotas
Corporate Securities
Derivatives
International Government Bonds
Securities Breakdown
Corporate
SMEs
Vehicles
Personal Loans
Credit Cards
Latin America
Mortgage (includes individuals and
companies)
Payroll Loans to individuals + BMG
| 8 |
471 550 575 554 621 649 605 560 558
8995 94 92
95 96 9894 99560
645 669 645716 746 703
654 657
429514 542 529 561 555 523 498 495
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16
76.5%79.7% 81.1% 82.0%
78.3%74.4% 74.4% 76.2% 75.4%
91.0%93.4% 94.3% 95.6%
90.3%85.5% 86.5%
89.0% 88.8%
39.3%
42.1%
10.7%
7.9%
% Funding (Maturity Breakdown) Ratio between Loan Portfolio and Funding2
Over 365
0-30
31-180
181-365
(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
Funding | Evolution and Breakdown
(1) Includes institutional clients in the proportion of each type of product invested by them.
158 167 174 165 169 172 166 163 165284 280 266 255 282 308 292 336 342
759 781 812 831 876 897 945 9791,0521,265 1,309 1,342 1,341
1,412 1,456 1,4691,550
1,629
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16
Demand and savings Deposits
Time Deposits + Debentures +Funds From Bills
Assets Under Administration +Technical Provisions forInsurance,Pension Plan and Premium BondsTotal Funds from Clients +Interbank Deposits
Funding from Clients (R$ billion) Reserve requirements and Cash
Loan Portfolio (R$ billion) (3) Loan Portfolio/ Funding (4)
Loan Portfolio/ Gross Funding(3)
In R$ millions Without CorpBanca With CorpBanca
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
Funding from Clients¹
| 9 |
Recurring ROE / Recurring ROA | Evolution
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) Annualized Return on Average Assets (quarterly)
| 10 |
Efficiency and Risk-Adjusted Efficiency Ratios | Evolution
Efficiency Ratio - Consolidated
Efficiency Ratio – Brazil¹
(1) Includes units abroad ex-Latin America.
Quarterly Efficiency Ratio(%)
Trailing 12-month Efficiency Ratio(%)
Quarterly Risk-Adjusted Efficiency Ratio (%)
Trailing 12-month Risk-Adjusted Efficiency Ratio (%)
Efficiency Ratio without extraordinary items of personnel expenses
Quarterly Efficiency Ratio(%)
Trailing 12-month Efficiency Ratio(%)
Quarterly Risk-Adjusted Efficiency Ratio (%)
Trailing 12-month Risk-Adjusted Efficiency Ratio (%)
| 11 |
Information Technology | Evolution
Total number of transactions
Share of transactions per channel
(1) Standard channels: Branches, ATM, Telephone. (2) Electronic Remote Channels: Mobile and Internet
Standard Channels 1 Electronic Remote Channels2
Branches ATM Telephone Internet Mobile
Agenda
3. CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 13 |
Itaú CorpBanca | Highlights
Regional footprint & main indicators
November 30, 2016 ²
Itaú CorpBanca Chile Assets: US$ 34.0 BN
Headcount: 6,005
Branches: 224
CorpBanca Colombia
Assets: US$ 10.2 BN
Headcount: 3,670
Branches: 174
CorpBanca Panamá Assets: US$ 0.81 BN
Headcount: 51
US$ 44BN
US$ 32BN
9.675
Loans
Assets
Headcount #
Branches # 398
Itaú CorpBanca
2016 ¹ ²
4º 5º3
4º 5º3
We are the 4th and 5th largest private bank in Chile and Colombia, respectively
(1) Consolidated information as of Noviember 30, 2016; 2 Figures were converted at an exchange rate of 673.06CLP/USD; 3 For assets and loans, rankings consider Grupo Aval as the combination of Banco de Bogotá, Occidente, Popular, AV Villas
Source: SBIF
| 14 |
BCI
Itaú CorpBanca
Banco de Chile
Banorte
Grupo Aval
Scot iabank
Itaú LatAm
Citibank
Santander
BBVA
Itaú CorpBanca
Banorte
Grupo Aval
Scotiabank
Citibank
BTG Pactual
BBVA
Santander
Bradesco
Itaú Unibanco
Itaú CorpBanca | Relevance in LatAm and South America
1 Information as of november 30, 2016. Includes Brazil, México, Argentina, Perú, Chile and Colombia; 2 Includes Argentina, Brazil, Paraguay, Uruguay, Chile and Colombia; 3 In Septi. 30, 2016 Bradesco started including HSBC Brazil in their reports; 4 Includes Chile and Colombia (Itaú CorpBanca Chile with ~US$35MMM in assets); 5 Informaction as of Sept. 30, 2016. Iincludes Argentina, México, Perú, Chile and Colombia; 6 Includes Argentina, Paraguay, Uruguay, Chile and Colombia; 7 Information as of Septi. 30, 2016; 8 Considering a conversion rate of BRL 3.2462 per 1.00 USD, a Sep/30/2016.
Source: Central Banks , local regulators, companies filings, Itaú CorpBanca analysis
Largest banks in Latin America 1 Largest banks in South America (ex-Brazil) 5
Relevace within Itaú Unibanco 7 Breakdown by Country 7
US$ BN
US$ BN
US$ BN
Itaú CorpBanca is currently the third largest bank in Chile. The merger positions Itaú Corpbanca and Itaú LatAm as the fourth largest bank within South (ex-Brazil) in terms of Assets
Total LatAm Loans : US$43 BN
Loans8
Brazil and other
Countries Itaú LatAm
25%
43 131
BTG Pactual
7. Banorte
Santander
4. BBVA
Itaú Unibanco2
9. Grupo Aval
Bradesco3
8. Citibank
Scotiabank
Itaú CorpBanca4
1
2
3
4
5
6
7
8
9
11
60
52
331
389
50
156
429
58
50
46
Citibank
Banco de Chile
Grupo Aval
5. Scotiabank
BBVA
Santander
Itaú LatAm6
1
2
4
3
5
6
7
46
50
50
52
47
55
46
129
156
58
5%
65%
21%
4%
5%
Itaú AR
Itaú Corp CL
Itaú Corp COL
Itaú PY
Itaú UY
86%
Banorte
Itaú CorpBanca4
BCI
9
10
8
| 15 |
4th largest Market Cap among Peers
Note: Figures were converted at an exchange rate of Ch$679.65 US$1 (as of August 31, 2016).
Source: Itaú CorpBanca & Santiago Stock Exchange.
ADRs holders and Foreign investors 14.66%
Securities Brokerage 6.34%
Santo Domingo Group 1.92%
Insurance Companies 1.39%
AFPs 0.26%
Other minority shareholders 5.40%
1- Includes 52,125,023 shares owned by Saga that are under custody.
ITAÚ CORPBANCA Total shares: 512,406,760,091(100%)
Itaú Unibanco
35.71%
December 31, 2016
Shareholders - % Total share capital
Saieh Family1
31.00%
IFC
3.32%
Others
29.97%
Introduction | Shareholders Structure after Merger
January 12, 2017
11.39
10.25
6.28
4.32
1.44
PEER-A PEER-B PEER-C ITAUCORP PEER-D
US$
BN
| 16 |
Introduction | Senior Management Structure
(1) Interim since January 2017 Source: Itaú CorpBanca. Date: November 2, 2016
BOARD OF DIRECTORS
Itaú CorpBanca Chief Executive Officer
Audit Committee
Milton
Maluhy
Wholesale
Christian
Tauber
Retail
Julián
Acuña
Treasury
Pedro
Silva
Marketing &
Products
Rogério
Braga
CRO
Mauricio
Baeza
CFO
Gabriel
Moura
IT &
Operations
Luis
Rodrigues
Legal &
Compliance
Cristián
Toro
Human
Resources
Marcela
Jiménez
Comptroller
Marcio Palestra1/
Corpbanca
Colombia
Álvaro
Pimentel
| 17 |
Timeline S&P
Source: Itaú CorpBanca, Moody’s, S&P
International Ratings 2016
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-
A
A+ A+ A+
A
A
BBB+
A- A-
A
BBB+ BBB+
A-
BBB BBB
BBB+
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
Ratings | Improvements will contribute to lowering the funding costs
+3n +1n
| 18 |
Itaú CorpBanca | Ratio BIS ¹
Target Capital Ratio (greater of):
120% Minimum Regulatory Capital (Chile): 12.0%
Three Largest Private Banks2 (Chile): 13.3%
1 BIS ratio = Patrimonio efectivo / RWA, according to SBIF BIS I definitions.
2 –Cas of August 31, 2016 (last available information at the SBIF).
Source: Itaú CorpBanca.
Target Capital Ratio (greater of):
120% Minimum Regulatory Capital (Chile): 12.0%
Three largest Private Banks 2 (Chile): 13.3%
Subordinated
Bonds Other
Agenda
3. CorpBanca Colombia
2. Itaú CorpBanca
1. Itaú Unibanco
| 20 |
180
174
3,727
570
6,361
7,141
# ATMs
# Branches
# HeadCount
# Clients(thousand)
DepositsUSD MM
Gross LoansUSD MM
CorpBanca Colombia | Highlights
Source: CorpBanca Colombia, Exchange rate of COP 3000,71 per 1 USD
1: Numbers as of December 2016
2: Deposits include Checking and Savings accounts and Term Deposits
3: HeadCount includes Panamá
Regional footprint & main indicators Dec 20161
CorpBanca Colombia
MS: 5,7%
#Player: 6
TIER I: 9,68%
Total Capital Ratio: 13,14%
NPLs: 2,9%
Net Inc. FY15: USD ~ 106,3 MM
Net Inc. FY16: USD ~ -50,3 MM
Bank #6 in Colombia, with over 570 thousand clients and presence in 23 cities locally and one in Panama.
CorpBanca Colombia 20161
2
3
| 21 |
Itaú CorpBanca | Transaction in Colombia
CorpBanca Colombia to acquire assets and liabilities of Itaú BBA Colombia
1 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%. 2 Pending on regulatory approvals in Colombia. 3 Assets book value is COP 263 BN (approximately US$ 89.5 million) and liabilities book value is COP 92.8 BN (approximately US$31.6 million). Figures in dollars where converted at an exchange rate of COP2,939.25 /US$1 as of January 13, 2017.
Contemplated Structure in Colombia
Itaú
CorpBanca
CorpBanca
Colombia
Postponement of the date for Itaú CorpBanca to purchase the
12.36% stake of CorpGroup in CorpBanca Colombia:
‐ The postponement date is until January 28, 2022
‐ The purchase price has not changed (US$ 3.5367 per share1)
‐ Itaú CorpBanca will carry out commercially reasonable efforts to
register an listing CorpBanca Colombia in the Colombian Stock
Exchange (BVC)
‐ The rational is to create a liquidity mechanism for minorities to sell the
stake in the company
CorpBanca Colombia will acquire Itaú BBA Colombia assets and
liabilities at their book value2 3
CorpGroup Helm
Corporation
Other
Minorities
Itaú BBA
Colombia
(asset and
liabilities)
66.28% 12.36% 20.82% 0.54%
+ Transaction pending
Financial Group in Colombia
CorpBanca
Colombia
Helm
Fiduciaria
CorpBanca
Investment
Trust
Helm
Comisionista
de Bolsa
Helm Bank
Panamá
Helm Corredor
de Seguros
94.0% 94.5% 95.0% 100%
| 22 |
CorpBanca Colombia | Board of Directors
Me
mb
ers
President
Miembros de Junta
Rogeiro Carvalho Braga 1/
Gabriel Amado de Moura 1/
Juan Echeverría González
Carmiña Ferro Iriarte
Rafael Pardo Soto
Roberto Brigard Holguín*
Luis Fernando Martinez Lema*
Mónica Aparicio Smith*
Milton Maluhy Filho
Source: CorpBanca Colombia. November 1, 2016
(*) Independent Board Members
1/ ¨Pending approval by Superintendencia Financiera
| 23 |
CorpBanca Colombia | Senior Management Structure
1/ Since January 1, 2017. Pending posession before SFC 2/ In process of joinig the Bank Source: CorpBanca Colombia:
Board of Directors
CorpBanca Chief Executive Officer
Audit Committee
Álvaro Pimentel1/
Wholesale
Jorge Villa2/
Retail
Claudia P.
Vélez
Treasury
Derek
Sassoon
IT
Lilián Rocío
Barrios
CRO
Edson Silva
CFO
María Cristina
Vandame
Operations
Liliana Suárez
Legal &
Compliance
Dolly Murcia
Human
Resources
Andrea Arizala
Ctry Controller
Juan I. Castro Compliance
Carlos Díaz
Public Affairs
Carolina Velasco
| 24 |
Decreasing Net Interest Margins, higher LLP and higher costs of liquidity explain the lower profitability of CorpBanca Colombia compared to its peers.
CorpBanca Colombia | Profitability Ratios
138,6 103,4
106,9
24,8 12,1
277,8
-50,3
15,1
792,7
Net Income 2016 (USD millions)
Annual
Growth +18% +62% +4% -16% +68% +8% +2% +269% -125% -147%
Personnel
expenses Other income Taxes Net Income
Technology
Amortization Net LLP
Derivatives
and portfolio
income
Net
Commissions
and fees
Interest
Expense
Interes Income
from Loans and
Leases
Administrative
expenses
+100%
446,3
44,1
Source: CorpBanca Colombia, Exchange rate of COP 3000,71 per 1 USD
1. NIM Loans Interest – Deposits Interest expenses / Gross Loans includes the cost of bonds rediscounted loans and foreign currency loans. Annualized monthly NIM
2. 12 months net Income over 12 months average of equity and assets for Dec.14 Colgaap Accounting standards
3. Information from november 2016
10.33 8.94 7.84
5.94
2.73
-4.03
15.64
1.25 1.06 0.93 0.7 0.32
-0.47
2.08
Dec-14 Dec-15 Mar-16 Jun-16 Sep-16
ROE
ROA
ROE and ROA (%)2
Total Banks (*)
Dic-16
3
| 25 |
Itaú CorpBanca’s management, after a throughout evaluation, elected Helm Bank’s Phoenix platform as the core
banking legacy system for Itaú CorpBanca’s operation in Colombia.
This strategy will benefit from reduced implementation time and risk when compared to the previous existing
strategy that was based on synergy benefits that do no longer apply in the current scenario.
IBS
CorpBanca
Ch
ile
C
olo
mb
ia
Altair
CorpBanca Colombia (Former Santander Colombia)
Pre
-In
teg
ratio
n
Po
st-
Inte
gra
tion
Phoenix
Helm Bank C
hil
e
Co
lom
bia
Pre
-In
teg
ratio
n
Po
st-
Inte
gra
tion
P
re-I
nte
gra
tio
n
Po
st-
Inte
gra
tion
Rationale: Scale synergies, know-how synergies Rationale: Reduced implementation time and risk
IBS
IBS
CorpBanca
Altamira
Itaú Chile
Altamira
Altair
CorpBanca Colombia (Former Santander Colombia)
Phoenix
Helm Bank
Phoenix
Itaú CorpBanca legacy strategy CorpBanca legacy strategy
Benefits from synergies with Itaú Unibanco
CorpBanca Colombia | Core Banking Legacy System
| 26 |
3.6 3.8 3.9 4.0 4.3 4.3
4.7 5.2
4.4 4.4 4.3 4.4 4.5 4.6 4.7 4.8
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca
Total Banks
Allowance for Loan Losses / Gross Loans (%)
Source: Superintendencia & CorpBanca Colombia,,
1: Information from system as of November 2016
CorpBanca Colombia | Loan Provisions
1
0.6 0.5
0.6 0.7 0.7
0.6
0.9
1.7
0.4 0.5 0.5 0.6 0.5 0.6 0.6 0.5
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca
Total Banks
LLP Expense / Gross Loans (%)
1
During 4Q 2016 the Bank made relevant LLPs, ending 2016 with a Ratio of ALL / Gross Loans above the average of Total Banks
| 27 |
2.1 2.1 2.3 2.4
2.2 2.5 2.5
3.3
2.9 2.9 3.0 3.0 3.0 2.8 3.1 3.0
3.2 3.3
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca Total Banks
NPLs 30 days (%)
Coverage (%)2
Source: Superintendencia & CorpBanca Colombia,,
1: Information from system as of November 2016
2: Loan Loss Provisions / Past Due loans above 30 days
174 174 161 164
186 169 172
143
180
150 146 144 147 156
144 151 145 142
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca Total Banks
CorpBanca Colombia | Risk Ratios
1
1
5.4 5.1 5.7 5.9
6.5 6.6 7.1
9.0 9.8
6.4 6.3 6.6 6.3 6.5 6.8 7.1 7.2 7.8
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca Total Banks
B, C, D, E Loans / Gross Loans (%)
1
B, C, D, E Loans Coverage (%)
69 71 66 66
62 65 61
53 53 53
69 67 69 68 67 64 65 61
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
CorpBanca Total Banks
1
Higher past-due Loans and B,C,D,E Loans compared to 2015
| 28 |
39% 40% 42% 40%
30%
40% 41%
18% 20% 9% 12%
8%
14% 12%
30% 29%
33%
42%
51%
34% 35%
13% 12% 16%
6% 12% 12% 12%
Peer 1 Peer 2 Peer 3 Peer 4 C Peers Sist.
Source: Superintendencia & CorpBanca Colombia,
Numbers as of November2016
DDA: Checking Accounts
% YoY Growth
$18,3 $7,8 $18,8 $14,5 $7,3 $59,4 $129,9 Peer CorpB
-0,4% 13,0%
72,5% 20,1%
36,8% 27,8%
-12,3%
-34,2%
5,0%
-0,7%
Higher share of Time Deposits than Industry, with a more stable funding structure.
CorpBanca Colombia | Funding Detail
Funding Mix (USD Bn)
Checking Accounts
Savings
TDs
Bonds
| 29 |
11% 11% 11% 9% 9% 9% 8% 8% 8%
41% 39% 39% 42% 44% 43% 36% 30% 28%
41% 42% 42% 42% 40% 40% 49%
53% 51%
8% 7% 7% 7% 7% 8% 8% 10% 12%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Checking
Saving
TDs
Bonds
Funding Mix (%)
An increase in the proportion of TDs, and Ordinary Bond Emissions during 2016. Reduced sensibility to changes in Interest Rates
Source: Superintendencia & CorpBanca Colombia,
1 Total Capital Adequacy ratio minus capital adequacy ratio without VaR
CorpBanca Colombia | Funding Evolution
70.1 55.6 59.4
74.8 76.3 84.8 73.0 73.5 49.9
1.4%
1.1%
1.2% 1.3%
1.4% 1.3%
1.2% 1.3%
0.9%
0.8% 0.9% 1.0%
0.9% 0.9% 1.0%
0.9% 0.9% 0.8%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
VAR
RatioCorpbanca
Ratio System
VaR weight on capital adequacy ratio (USD millions, %)1
| 30 |
CorpBanca Colombia | Liquidity
Source: CorpBanca Colombia,
1: Funding: Savings and Checking accounts, Term Deposit and Bonds
CorpBanca sufficiently fulfills regulatory indicators and maintains a ratio of Net Loans over Funding below one. The bank is in the process of aligning limits and standards with those of Basilea III (LCR y NSFR)
Ratio between Loan Portfolio and Funding (%, USD million)1
6.1 6.5 6.7 6.8 6.8 6.8 6.9 6.9 6.8 6.4 6.7 6.8 7.0 7.6 7.4 7.7 7.3 7.2
95.5% 96.5% 99.0% 97.0% 89.2% 92.2% 90.3%
95.1% 93.7%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Net Loans
Deposits
Ratio
Liquid Coverage Ratio (IRL) USD BN)
0
0.5
1
1.5
2
2.5
IRL 7 Days
IRL 30 Days
IRL 90 Days
| 31 |
Recomposition of funding structure, higher liquidity costs and an increase in the Central Bank rates had an impact on the NIM. Over the last 3 months of the year the NIM stabilizes
Source: Superintendencia & 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
2. 12 months net Income over 12 months average of equity and assets for Dec.14 Colgaap Accounting standards
3. Numbers as of november 2016
5.5 5.5 5.4 5.4 5.4 5.5 5.3 5.3 5.2 4.9 4.8 4.7 4.2
4.7 4.0 4.2 4.0
3.7 3.4 3.4 4.1 4.2 4.1 4.2
jan-15 feb-15 mar-15 apr-15 may-15 jun-15 jul-15 aug-15 sep-15 oct-15 nov-15 dec-15 jan-16 feb-16 mar-16 apr-16 may-16 jun-16 jul-16 aug-16 sep-16 oct-16 nov-16 dec-16
NIM CenBank Rate
NIM (%)1
7,5
4.5
CorpBanca Colombia | Net Interest Margin
5.2 2015 Average
4.0 2016 Average
Loans and Deposits Rates (%)
jan-15 feb-15 mar-15 apr-15 may-15 jun-15 jul-15 aug-15 sep-15 oct-15 nov-15 dec-15 jan-16 feb-16 mar-16 apr-16 may-16 jun-16 jul-16 aug-16 sep-16 oct-16 nov-16 dec-16
Loans
Bonds
TDs
CenBank
Savings
11,8
7,9
8,9
7,5
5,7
| 32 |
9.05% 9.50% 9.82% 9.29%
6.90%
16.86%
21.75%
13.18% 12.68% 14.30%
Bancolombia Bogotá Occidente CorpBanca Davivienda
1,052 241
811
282 7 1,100
Tier1/Deductions
Good will Tier 1 SubordinatedDebt
Other RegulatoryCapital
Tier 1
Consolidated
Tier1+Tier2
Consolidated
Non-
Consolidated
CorpBanca Colombia | Capital Ratios
Consolidated regulatory capital ratio Sep.16 1 (%) Non-consolidated regulatory capital ratio Dec. 16 (USD MM, %)
9,7%
13,1%
Since 2012 CorpBanca has reinvested its net profits. The bank shows a Non-consolidated regulatory capital ratio of 13,1% as of december, and a Consolidated regulatory capital ratio close to its peers on september 2016.
Source: Superintendencia & CorpBanca Colombia
Numbers as of december 2016
1: Source: Annual reports of each bank.
2: Consolidated numbers as of june 2016
13,47%
11,50%
12,24%
14,40%
12,38%
2
January 2017
Itaú CorpBanca Institutional Presentation