Corp Banca. Second Quarter and First Half Results 2006

Transcription

1 Corp Banca Second Quarter and First Half Results August, 2006

2 FORWARD LOOKING STATEMENTS 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. Corp Banca 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. 1

3 MAIN CONTENTS ANALYSIS OF RESULTS BUSINESS ACTIVITY CONCLUSIONS 2

4 3 Analysis of Results

5 FIRST HALF RESULTS Corp Banca s results as of (expressed in Ch$ millions of June 2006) Net interest revenue June ,811 June ,573 amount (3,762) Fees and income from services, net 13,515 10,115 3,400 Gains from trading activities Foreign exchange transactions, net Other operating income (loss), net * Gross margin Operating expenses Provisions for loan losses Income attributable to investment in other companies Price level restatement Business results Non-operating results ** Income before income taxes Income taxes Net income 3, (5,474) 63,942 (31,502) (7,788) 366 (3,563) 21,455 (47) 21,408 (3,563) 17,845 9,359 (521) (2,033) 72,493 (28,930) (8,173) 99 (2,865) 32,624 (1,099) 31,525 (6,063) 25,462 (5,977) 1,229 (3,441) (8,551) (2,572) (698) (11,169) 1,052 (10,117) 2,500 (7,617) (**) Includes sales force expenses, assets received in lieu of payment expenses, Leasing assets sale and UF-Pesos Forwards Income, net (**) Assets received in lieu of payment income - Goodwill expenses and recoverie expenses 4

6 TRADITIONAL BANKING BUSINESS REMAINS STABLE Corp Banca s results as of (expressed in Ch$ millions of June 2006) Spread * June ,482 June ,154 amount (6,672) Fees and income from services, net 13,515 10,115 3,400 Income attributable to investment in other companies ** Securitie Brokerage Gains from trading activities (769) 1,135 3,382 (2,993) 3,092 9,359 2,224 (1,957) (5,977) Provisions for loan losses, net from recoveries Operating expenses Non-operating results (7,788) (31,502) (47) (8,173) (28,930) (1,099) 385 (2,572) 1,052 Income before income taxes, gains from traiding activities and securities brokerage 16,891 19,074 (2,183) Income before income taxes 21,408 31,525 (10,117) * Includes net interest revenue; foreign exchange transactions, net; other operating income, net and price level restatement ** It does not include Securitie Brokerage income. 5

7 INVESTMENTS SECURITIES CONTRIBUTION 8,000 7, % 7,000 6, % 5,678 5,259 Gains from trading act. BCU % 5,000 4, % 4, % 3.5% MM$ 3, % 2,000 1, % 2.30% 2.5% 0-1, H 05 1H % 6 Source: Internal Information

8 INVESTMENT SECURITIES PORTFOLIO EVOLUTION 545, , , , , , , , , ,802 71,231 38,746 33,579 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Figures in Ch$ millions 7 Source: SBIF

9 MARK TO MARKET (Ch$ MILLIONS) 4,319 3,801 1, ,862-5,230-7,510-7,075 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 8

10 NET INCOME BEFORE TAXES Net Income Before Taxes & ROAA ,309 18, % , % 2.1% 2.1% 14, % 12, % 1.5% , % % 1.0% % Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0.0% Net Income before Taxes ROAA (Before Taxes) 9

11 NET INCOME BEFORE TAXES Net Income Before Taxes & ROAE 20,000 18,000 17,309 18,172 25% 16,000 14,000 12,000 10,000 8,000 6,000 14, % 19.1% 19.8% 14, % 9, % 12, % 20% 15% 10% 4,000 5% 2, Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0% Net Income before Taxes ROAE (Before Taxes) 10

12 ADJUSTED PROFITABILITY 2005 CORP BANCA CHILE SANTANDER BCI ROE Before taxes 17.42% 33.24% 33.53% 30.38% After taxes 14.83% 30.41% 28.46% 26.74% ROE without Goodwill Before taxes 18.70% 33.24% 33.53% 30.38% After taxes 16.06% 30.41% 28.46% 26.74% JUNIO 2006 CORP BANCA CHILE SANTANDER BCI ROE Before taxes 10.66% 34.57% 36.22% 27.12% After taxes 9.16% 31.69% 30.80% 24.11% ROE without Goodwill Before taxes 11.55% 34.57% 36.22% 27.12% After taxes 10.03% 31.69% 30.80% 24.11% 11

13 ADJUSTED PROFITABILITY COMPARISSON UNDER US GAAP CORP BANCA CHILE SANTANDER ROE US GAAP % 1.32% 7.72% % 9.73% 9.88% % 11.09% 10.78% % 11.80% 11.90% ROE Chilean GAAP % 29.2% 23.9% % 30.4% 28.5% 12

14 FEES AND INCOME FROM SERVICES Fees and Income From Services 8,000 7,348 7,205 7,000 6,000 5,608 5,981 6,310 5,000 4,508 4,000 3,000 2,000 1, Q05 2Q05 3Q05 4Q05 1Q06 2Q06 13

15 EFFICIENCY Operating Expenses & Efficiency 17,500 15,000 13,807 15,125 15,546 15,404 14,912 16, % 80% 12,500 10, % 60% 7,500 5,000 2, % 35.3% 38.1% 42.2% 44.9% 40% 20% 0 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0% Operating Expenses Efficiency Ratio 14

16 PORTFOLIO QUALITY Portfolio Quality Ratios 250% 2.0% 200% 172.6% 196.3% 205.7% 177.4% 196.1% 163.5% 1.5% 150% 100% 1.0% 0.8% 0.8% 0.9% 0.8% 0.9% 1.0% 50% 0.5% 0% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 0.0% Allowances / Past due loans Past due loans / Total loans 15

17 CREDIT RISK EXPOSURE UNDER CONTROL 20% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 5% Return on Average Equity (%) 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 12.9% 1.66% 15.5% 1.62% 16.7% 1.59% 13.7% 1.56% 8.3% 1.55% 10.4% 1.52% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% Allowances / Total Loans 16

18 17 Business Activity 2006

19 CORP BANCA S STRATEGY PLAN Growth Profitability Drivers Portfolio Quality Efficiency! Intensify growth in profitable segments (Massive banking, SME)! Increase client data base! Increase client transactions (credit card, checking account)! Credit standards! Sound allowance policies! Solid risk evaluation models! Cost control culture! State of the art technology! Centralization of internal processes! Cross selling (Cash Management, Comex, mortgages, checking accounts)! Fees strategy Profitable growth with high standards in credit and operational risks 18

20 LOAN PORTFOLIO Loan Portfolio, net of interbank (MCh$) 3,005,871 2,832,070 2,851,311 2,895,870 2,760,055 2,685,912 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 19

21 DIVERSIFIED LOAN MIX Loan Portfolio (1), June 2006 Leasing 7% Factoring 2% Contingent 8% Past Due 1% Consumer (inc. cred. card) 13% Mortgage (2) 16% Foreign Trade 8% Total: US$ 5,492 mm Commercial 45% Corp Banca s loan portfolio diversification allows the bank to achieve market leading returns while keeping risk low. 20 (1) Net of interbank loans. (2) Includes both residential and commercial mortgages.

22 21 Products Performance

23 RESIDENTIAL MORTGAGES (UF THOUSANDS) 1,200 1,114 1,000 1, M UF Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 22 As of (M UF) June 2005 June

24 RESIDENTIAL MORTGAGES (UF THOUSANDS) June of each year % Change % Change - Industry Loans (MM$) 273, , % 16.7% Number of Operations 10,806 7, % 23

25 CONSUMER LOANS SALES TRADITIONAL RETAIL (Ch$ MILLIONS) 9,000 8,000 7,763 7,000 MM$ 6,000 5,000 4,000 3,000 2,000 5,350 3,286 4,346 2,871 5,760 5,744 5,365 5,275 4,418 4,033 3,893 4,341 5,010 4,946 5,136 5,487 5,549 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 24 As od (MM$) June 2005 June

26 CONSUMER LOANS SALES MASS MARKET (Ch$ MILLIONS) 18,000 16,000 15,585 MM$ 14,000 12,000 10,000 8,000 8,287 7,209 10,927 9,733 9,538 9,011 10,124 8,836 8,545 8,795 13,203 10,427 12,433 12,335 10,185 6,000 7,294 4,000 5,763 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 25 As of (MM$) June 2005 June

27 CREDIT CARD SALES (N OF CREDIT CARDS) 6,000 5,000 4,000 3,645 4,200 3,690 4,802 4,718 3,752 4,058 4,295 4,065 4,552 4,621 N de Tarjetas 3,000 2,000 1,000 2,210 2,957 1,719 2,107 2,815 2,748 2,785 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 26 As of (N of Cards) June 2005 June

28 CREDIT CARD As of June each year % Change % Change - Industry Purchases (U.F.) 1,654,689 1,113, % 19.0% Total consumption (U.F.) 1,999,311 1,375, % 19.7% Loans in Credit Card (MM$) 26,063 18, % Credit Card Stock 136,847 96, % 19.5% Mk. Share purchases (YTD) 3.4% 2.7% 0.7% Mk. Share purchases (month) 3.6% 2.9% 0.7% 27

29 CHECKING ACCOUNTS SALES (N OF ACCOUNTS) 1,100 1,029 N Ctas 1, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 28 As of (N ) June 2005 June

30 CHECKING ACCOUNTS SALES (N OF ACCOUNTS) Figures in MM$ - Commercial Banking % Change Average balance 96,171 86, % Number of accounts 10,042 10, % Average balance per account % Figures in MM$ - Individual Banking % Change Average balance 46,527 44, % Number of accounts 44,443 39, % Average balance per account % 29

31 30 Conclusions

32 CONCLUSIONS We continue to balance our balance sheet Our strategy is to focus on higher financial margins business segments We are not permanently moving away from the treassury business Second quarter presents an important change in trends when compared to previous quarter. 31

33 Corp Banca Investor Relations Unit (56-2)