CORPBANCA Unique Growth Strategy. November 2011

Transcription

1 CORPBANCA Unique Growth Strategy November 2011

2 Disclaimer These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the information set forth in these forward-looking statements include, but are not limited to, the effect of general economic conditions, increases or changes in competition in the markets in which we operate, the actions of competitors, our ability to implement and complete successfully our plans and strategies or delays or additional costs encountered in connection with their implementation, the benefits from and resources generated by our plans and strategy being less than or different from those anticipated, the costs or other results of pending or future investigations or legal proceedings, actions of courts, law enforcement agencies, government agencies and third-parties, fluctuations in exchange rates, the diversion of management's attention from implementing our plans and strategy, and other factors. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements, which only speak as of the date that they were made, CorpBanca does not undertake any obligation to release publicly any revisions to such forward-looking statements included in this web-page, to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Unless otherwise stated, figures are presented in Million of Chilean pesos (Ch$mn) 2

3 INTRODUCTION

4 4 th largest private bank in Chile by loans US$11,954 million in loans as of September % market share in Chile Net Income: US$235 million in 2010 // US$171 million as of Sep-11 Leader in efficiency and risk management Efficiency ratio: 38.1% (Dec-10) // 39.1% (Sep-11) Risk Index: 2.0% (Dec-10) // 1.7% (Sep-11) Loan Portfolio Breakdown (Sep-11) Commercial Mortgage Consumer 18% 7% 75% #1 private bank in growth over the last 5 years by total loans Loans CAGR 06 10: 14% ROA: 1.7% and ROE of 25% in 2010 // ROA: 1.5% and ROE: 17.9% as of Sep-11 BIS Ratio: 13.4% in Dec-10 // 14.7% in Sep-11 National coverage: 116 branches and 420 ATM (Sep-11) Loan Portfolio : US$11,954 mm Network Distribution (Sep-11) Northern Chile 27% Important recognitions Best Banking Group 2011 (World Finance) 4 th safest bank in Latin America (Global Finance) 12 Salmon Awards in the last 5 years and 3 FundPro Awards Southern Chile 28% Santiago 45% More than 3,500 employees Investment Grade BBB+/Pos global scale rating (Standard & Poor s) AA national scale rating (Feller Rate and ICR) Note: Figures expressed in USD were converted at CLP /USD. Condell 48% Number of Branches: 116 Corpbanca 52% 4

5 Shareholding Structure INSURANCE COMP. 1.5% CORPVIDA S. A. 2.1% FOREING INVESTORS AND ADR s 4.4% BROKERAGE FIRMS 7.1% OTHERS 17.5% CORP GROUP BANKING S.A. 51.2% October 2011 AFP s 7.8% SAGA LTDA. 8.4% Board of Directors Alvaro Saieh Bendeck Chairman Corp Group Chairman and Santiago Stock Exchange Director Jorge Andrés Saieh Guzmán First Vice Chairman Copesa Chairman and former AFP Provida Director Fernando Massú Tare Second Vice Chairman Former Santander Chile Wholesale Banking Director and Citicorp Chile CEO Fernando Aguad Dagach Director Director of companies Julio Barriga Silva Director Former BancoEstado CEO and former Banco Santiago Chairman Anita Holuigue Director Director of Grupo de Radios Dial and Director of SCAN Market Research Jorge Selume Zaror Director Former CorpBanca CEO and former Director of Chilectra and Entel Francisco León Délano Director Former ABN AMRO Bank Chile and BBVA Chile Director Gustavo Arriagada Morales Independent Director Former Chairman of the Banking and Financial Institutions Commission (SBIF) Juan Rafael Gutiérrez Ávila Alternate Director Former Banco Osorno y La Unión and AFP Provida Director Héctor Valdés Ruíz Alternate Director Former Banco Santiago CEO and former Transbank Director 5

6 Part of one of the leading business conglomerates in Chile SAIEH GROUP 6

7 CorpBanca: Unique Growth Strategy

8 Investment Highlights Chile: Solid economic growth with banking sector expansion Stable industry growth with diversified funding sources Solid banking sector compared to other countries in the region Transparent and well respected regulatory environment CorpBanca: An exceptional franchise part of the Saieh Group Exceptional growth story Lead by an experienced Board of Directors and management team Loans with high credit quality Outstanding efficiency and profitability US$ 350 mn Capital increase: Fundamentals and growth strategy Increases the Bank s competitiveness Wholesale Banking consolidation and expansion in the small and medium enterprises segment Strengthening of consumer segment through other businesses of the Saieh Group, particularly SMU Take advantage of Chile s growth potential 8

9 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11E Dec-12E 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0-1,0-2,0 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Oct-11 Dec-11E Dec-12E Chile: Strong Economic Fundamentals Real GDP Growth (%) Inflation (CPI) ,3 4,5 2,6 2,8 1,1 2,4 3,7 2,6 7,8 7,1-1,4 4,0 3,5 3,0 3,0 Inflation Target (3%) FDI Inflows (US$ bn) FDI Inflows as a % of GDP 8.8 Actual Estimate CAGR : 4.9% CAGR: 5.5% % 1.3% 2.4% 1.8% 8.0% 8.4% 3.3% 3.2% 1.7% % 4.9% 1.9% Source: Chilean Central Bank, IMF and The Economist Intelligence Unit Argentina Brazil Chile Colombia México Perú 9

10 20,0 18,0 16,0 14,0 12,0 10,0 8,0 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Chile: Solid Banking System Outstanding regulatory framework Efficiency Ratio (%) Respected regulatory institution: Banking and Financial Institutions Commission (SBIF) Proven and stable framework Confidence Chile was 7 th in the World Economic Forum s overall financial stability ranking and 2 nd in the banking stability category Dec-07 Dec-08 Dec-09 Dec-10 Sep-11 Financial Stability Ranking 2010 Ranking Country Value 1 Saudi Arabia Hong Kong Malaysia Singapore Switzerland United Arab Emirates Chile Norway Australia Brazil 5.15 Source: World Economic Forum 2010 ranking BIS Ratio and Risk Index , ,2* Dec-07 Dec-08 Dec-09 Sep-10 Dec-10 Sep-11 BIS Ratio Risk Index (%) *as of Aug-11 Source: SBIF 10

11 Growing Banking Industry Total Loans (US$ bn) Latin America leader Loans / GDP 77% % 24% 29% 12% 17% Argentina Mexico Peru Colombia Brazil Chile but still low penetration vs. other economies 23 Loans / GDP % 84% 126% 127% 143% Commercial Mortgages Consumer Chile Eastern Europe G7 China Asian tigers Source: SBIF Source: 2010 Business Monitor International 11

12 Loan growth above GDP growth Real GDP and Total Loan Growth (%) Loan Elasticity / GDP =2.1x 19.2% 20.0% 19.8% 15.9% Effect of Asian Crisis 11.1% Effect of Financial Crisis 9.7% 3.7% 3.3% (0.7%) 5.2% 4.5% 3.3% 1.1% 2.2% 4.0% 4.0% 6.0% 5.6% 4.6% 4.6% 3.7% (1.7%) 5.2% 5.9% 4.9% 4.5% (2.8%) (0.9%) (1.3%) E 2012E 2013E Real GDP Growth (%) Real Loan Growth (%) Source: Chilean Central Bank and IMF estimates 12

13 CorpBanca, an Exceptional Story Outstanding performance since acquisition of Banco Concepción, with high growth and profitability Stage I: Acquisition Stage II: Portfolio Cleansing Stage III: Efficiency and Segmentation Stage IV: Equity Stability Stage V: Retail and Commercial Growth % 25.0% 3.1% 2.6% 3.2% 2.5% 12.0% 20.1% 13.3% 2.2% 2.2% 17.4% 15.6% 14.8% 9.9% 11.8% 12.4% 18.5% 0.5% (1.4%) 2.2% 2.1% 1.7% 1.6% 1.4% 1.3% 1.5% 1.9% 2.0% Market Value US$ -800 m (4.2%) Market Cap US$ 3.6 bn (7.4%) ROE Allowances / total loans Efficiency Ratio: (10.3%) 30.3% 82.0% 98.8% 91.3% 78.7% 59.3% 47.6% 38.8% 38.2% 39.8% 39.9% 50.1% 52.6% 46.1% 39.0% 38.1% Source: SBIF, CorpBanca Sep-11: ROE: 17.9% Risk Index: 1.7% Efficiency Ratiio: 39.1% 13

14 CorpBanca, an Exceptional Story Lead by a cohesive and experienced management team Name Position Years of Banking Experience Education Mario Chamorro C. CEO 30 Engineer Economics U. de Chile MBA UCLA José Fco. Sánchez F. Corporate 32 Engineer Business U. Católica de Chile Oscar Cerda U. Commercial and SME 30 Engineer Business U. de Concepción Gerardo Schlotfeldt L. Retail Banking 21 Engineer Civil U. Católica de Chile Eugenio Gigogne M. CFO 23 Engineer Business U. de Chile MBA Tulane Pedro Silva Y. Treasury 20 Engineer Business U. de Chile MBA Chicago Amando Ariño J. Operations & IT 17 Engineer Civil INNCA Cristián Canales P. Legal 22 Lawyer U. de Chile José Manuel Mena V. Internal Audit 31 Engineer Civil U. de Chile José Brito F. Commercial Credit Risk 31 Engineer - Business UAI Jorge Garrao F. Retail Credit Risk 15 Engineer - Business U. Católica de Chile Verónica Villarroel M. Human Resourses 12 Philosophy Psychology U. Católica de Chile Gabriela Salvador B. Customer Satisfaction 21 Engineer - Business U. de Chile Eulogio Guzmán Ll. SMU CORP 27 Engineer - Business U. Católica de Chile 14

15 ,50% 7,30% 7,10% 6,90% 6,70% 6,50% 6,30% 6,10% 5,90% 5,70% 5,50% Private bank with highest growth rate in last five years Total Loans (MCh$) Total Loans 6.31% Market Share 6.82% 4, % 7.30% 7.31% 7.04% 6,208 5,469 4,944 5,012 3,332 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Sep-11 Risk Index vs. Industry Risk Index vs. Main Banks Dec-08 Dec-09 Dec-10 Sep-11 CorpBanca Industry Source: SBIF, CorpBanca CorpBanca Santander Chile Bci BBVA Scotia Dec-10 Sep-11 15

16 Leader in Efficiency and Consistent Profitability ROE vs. Industry ROA vs. Industry Capital increase: US$350 mn Dec-08 Dec-09 Dec-10 Sep-11 Dec-08 Dec-09 Dec-10 Sep-11 CorpBanca Industry CorpBanca Industry Efficiency Ratio vs. Industry Efficiency Ratio vs. Main Banks Dec-08 Dec-09 Dec-10 Sep-11 CorpBanca Santander Chile Bci BBVA Scotiabank Source: SBIF CorpBanca Industry Dec-10 Sep-11 16

17 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 ROE (%) Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 30,0 25,0 20,0 15,0 10,0 5,0 0,0 7,50% 7,30% 7,10% 6,90% 6,70% 6,50% 6,30% 6,10% 5,90% 5,70% 5,50% Strategic Focus Positive Results Net income (Ch$mn) ROE (%) Dec-06 39,104 Dec-07 51, months trailing Dec-08 56,310 Dec-09 85,109 Sep 11 Sep-10 Dec , , ,043 15,7 12,2 14,5 18,5 16,7 12 months traling 21,0 18,5 25,1 21,3 25,9 23,7 20,6 18,8 10,2 CORPBANCA Industry Total Loans evolution Total Loans (Ch$mn) Market Share 6.31% 6.82% 4, % 7.34% 7.30% 7.31% 7.04% 6,208 5,347 5,469 4,944 5,012 3,332 Dec-06 Dec-07 Dec-08 Dec-09 Sep-10 Dec-10 Sep-11 17

18 Dec % Feb-09 Apr % Jun-09 Aug-09 Oct % Dec-09 Feb % Apr-10 Jun % Aug-10 Oct % Dec-10 Feb-11 Apr % Jun % Aug-11 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% 189% 0.54% 185% 0.75% 233% 0.73% 178% 0.92% 227% 198% 0.81% 1.35% 243% 194% 0.86% 228% 1.27% 188% 0.72% 240% 1.13% 222% Improving capitalization and Healthy asset quality BIS Ratio PDL / Total Loans Dec-08 Dec-09 Dec-10 Sep-11 Dec-07 Dec-08 Dec-09 Dec-10 Sep-11 BIS Ratio Tier One CorpBanca Industry Efficient use of Capital Coverage PDLs 50% Dec-08 Dec-09 Dec-10 Mar-11 Jun-11 Sep-11 Space for SB Subordinated Bonds CorpBanca Industry 18

19 ROE (%) ROE (%) Leader in Efficiency ROE vs. Efficiency Ratio (12 m trailing, Sep.11-Sep.10) ROE vs. PDL / Total Loans (12 m trailing, Sep.11-Sep.10) % % 26 Chile 26 Chile Santander CORPBANCA Bci Industry 18.0% CORPBANCA Santander Bci Industry 18.0% 16 Scotiabank 16 Scotiabank BBVA Efficiency Ratio (%) 10 BBVA 8 0,0 0,5 1,0 1,5 2,0 2,5 PDL / Total Loans (%) Source: SBIF 19

20 US$ 350 mn Capital Increase: Fundamentals Improve competitiveness and strengthen presence in some segments Financial strength that allows us to devote 100% of capital increase to growth Improve competitiveness 1. Size of Ticket 2. Cost of funding Strong capitalization allows us to better exploit the economic cycle CORPBANCA 4% Itaú; 4% Falabella 5% BBVA; 8% Estado 10% Consumer Loans Others 8% Bci 12% Santander 27% Chile 22% Residential Mortgage Loans Itaú; 3% Others; 5% CORPBANC A 5% Scotia; 7% BBVA; 8% Bci; 10% Chile 16% Santander 24% Estado 22% Capitalize on commercial synergies with other companies of the group Accompany investments Chilean companies make abroad New York branch and representation office in Madrid Scotia; 5% BBVA; 6% Commercials Loans Itaú; 4% CORPBANCA 9% Estado 12% Others Total 11% Chile Itaú; 5% 9% Chile 21% 20% Santander 18% Bci 14% BBVA; 7% CORPBANCA 7% Falabella 4% Estado 14% Others Bci 13% Santander 21% Sep-11 Source: SBIF 20

21 Unique Growth Strategy Winning strategy that recognizes different needs of customers Segments Corporate Strategy Offers structured solutions, tailored suit, multiproduct Quick financial solutions for clients Companies Excellence in service quality, high end products and complete information systems SME Development of commercials relations through an aggressive sales force Retail Consumer banking Innovation in products, particularly in residential mortgage loans Take advantage of the joint venture with SMU Levels of excellence in service quality Benefits from banking penetration in lower income segments Attracting customers with attractive offers, through the joint ventures with SMU Offers personalized products for every customer 21

22 1,20 1,10 1,00 0,90 0,80 0,70 0, ,50% 5,00% 4,50% 4,00% 3,50% 8,50 8,00 7,50 7,00 6,50 6,00 5,50 5, ,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% Consumer and Residential Mortgage Loans Increasing Residential Mortgage Loans Improving Quality of Consumer Loans CAGR : 14.3% Mortgage Loans (MCh$) Market Share 4.22% 4.60% % 5.30% 1,033 1, % % 428 Consumer Loans (MCh$) Market Share 4.18% 3.80% Dec-08 Dec-09 Dec-10 Sep-11 Dec-08 Dec-09 Dec-10 Sep-11 Residential Mortgage Loans Risk (%) Consumer Loans Risk (%) Corpbanca Industry Corpbanca Industry Source: SBIF Dec-08 Dec-09 Dec-10 Sep-11 Dec-08 Dec-09 Dec-10 Sep-11 22

23 SMU Corp: joint venture with SMU Unique model between top retailer and bank Supermarket 1 Mkt. Share: 33.6% Supermarket 2 Mkt. Share: 26.4% Related Bank Mkt. Share: 0.2% SMU Mkt. Share: 20.6% CorpBanca Mkt. Share: 7.3% Supermarket 4 Mkt. Share: 6.7% Supermarket 5 Mkt. Share: 5.4% Related Bank Mkt. Share: 1.0% Supermarket market share based on 2010 pro forma sales Source: SMU, company financial statements 23

24 SMU Corp: joint venture with SMU Strategic alliance to enhance the consumer banking segment What does CorpBanca contribute? Proven credit quality Powerful risk models Operational efficiency and IT systems What does SMU contribute? Customers from all socioeconomic levels Distribution platform for cash management Premium spaces for ATMs Benefits for CorpBanca JV General Description Unique competitive advantage over other banks in the consumer loans market Lower cost of customer acquisition Possibility of adding new corporate clients related to SMU (cash management) SMU Corp is led by Eulogio Guzman who has direct experience in the business after leading Cencosud s Banco Paris Participation in Unired, Servipag s direct competition Leading retailer in Chile 24% market share in supermarkets (Sep-11) Stores in Chile: 411 (Dec-10) // 441 (Jun-11) Format (Jun-11) JV Structure 51% 49% SMU Overview Supermarket: 218 stores Wholesale: 93 stores Convenient Stores: 51 stores Home Improvement: 22 stores, 75 franchises Revenues 2010: US$ 2,300 million Revenues 2011(e): US$ 3,300 m (US$ 1,700 m as of Jun-11) Source: SMU 24

25 International Expantion Advantages in financing Chilean companies investing abroad and foreign companies that invest in Chile Nueva York Branch (2009) Madrid Representation Office (2011) 25

26 Appendix

27 CorpBanca Financial Results Key Indicators MAIN RATIOS (YTD) Dec-07 Dec-08 Dec-09 Sep-10 Dec-10 Mar-11 Jun-11 Sep -11 Net Income(Ch$ million) 51,049 56,310 85,109 91, ,043 29,273 61,546 88,651 ROA 1.1% 0.9% 1.3% 1.8% 1.7% 1.6% 1.5% 1.6 % ROE 11.8% 12.8% 18.5% 23.8% 25.0% 23.3% 23.5% 18.1% BIS Ratio 11.6% 10.8% 13.9% 12.8% 13.4% 12.3% 11.8% 15.3% Efficiency Ratio 48.1% 45.6% 38.9% 35.9% 38.1% 38.6% 40.5% 39.4% Risk Index 1.27% 1.38% 1.91% 1,94% 1.95% 1.87% 1.76% 1.73% 27

28 Contact Claudia Labbé Manager Investor Relations Ph: +56 (2) Add: Rosario Norte 660, 10th Floor, Las Condes Santiago - Chile claudia.labbe@corpbanca.cl 28