CorpBanca. First Quarter 2015 Financial Results

Transcription

1 CorpBanca First Quarter 2015 Financial Results

2 Disclaimer 2 This Presentation contains forward-looking statements, including statements related to the planned acquisition of Helm Bank and the timing thereof. Forward-looking information is often, but not always, identified by the use of words such as anticipate, believe, expect, plan, intend, forecast, target, project, may, will, should, could, estimate, predict or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to CorpBanca concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and CorpBanca does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Unless otherwise stated, figures are presented in Millions of Chilean pesos (MCh$) Exchange rates considered in the preparation of this document are: - Ch$/US$ : Ch$/UF : 24,622.78

3 Net income (12 months trailing) 3 Net Income for 4Q 2014 was Ch$39,7 billion. The chart shows the trend in our 12 months trailing Net Income from December 2008 March 2015 i) During this period, Net Income for the 12 months trailing December 2014 reached record levels: Ch$225.8 billion (US$ million), resulting in a 50% increase compared to March 2014 Δ + 50% Dec-08 56,310 Chile Colombia Dec-09 85,109 Dec ,043 Dec ,849 Dec ,080 Dec ,083 Mar ,403 Dec ,260 Mar ,800 Dec-08 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 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 *Net Income attributable to shareholders; for 2013 excludes Ch$16,000 million of one time profits from the sale of 31 real estate properties.

4 Financial Summary (Figures in Ch$ million, Chilean GAAP) 4 (Expressed in million of Chilean pesos) Consolidated 1Q 2015 Adjusted 1Q 2015 Chile Colombia Adjustments Change (%) 1Q 2015/1Q 2014 Chile Colombia Chile Colombia Net interest income 125,202 65,494 59,708 2,765 68,259 56, % -9.1% Net fee and commission income 36,579 22,883 13,696-22,883 13, % -10.0% Total financial transactions, net 49,735 21,408 28,327 (5,612) 15,796 33, % 1.3% Other operating income, net 8,559 (1,817) 10,376 1 (1,816) 10, % % Net operating profit before loan losses 220, , ,107 (2,846) 105, , % 2.8% Provision for loan losses (1) (38,970) (11,558) (27,412) - (11,558) (27,412) -15.8% 64.0% Net operating profit 181,105 96,410 84,695 (2,846) 93,564 87, % -8.0% Operating expenses (112,580) (59,311) (53,269) 2,599 (56,712) (55,868) 11.5% -7.7% Operating income 68,525 37,099 31,426 (247) 36,852 31, % -8.5% Income from investments in other companies % 77.6% Income before taxes 69,432 37,100 32,332 (247) 36,853 32, % -7.3% Income tax expense (22,239) (12,509) (9,730) 7,677 (4.832) (17,407) 5.1% -30.4% Net income 47,193 24,591 22,602 7,430 32,021 15, % 49.8% Net income attributable to shareholders 39,689 24,753 14,936 7,430 32,183 7, % 166.6% Efficiency Ratio 51.2% 54.9% 47.5% 53.9% 48.6%

5 30, 0 25, 0 20, 0 15, 0 10, 0 5,0 0,0 2,0 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 RoAE RoAA 5 We achieved a return on average equity (RoAE*) of 15.6% by the end of March 2015, an increase of 292 bp compared to 12.7% as of March 31, 2014 Previously, between third quarter of 2011 and fourth quarter 2013, our RoAEs were impacted by the capital injections to enable our organic growth in Chile and our acquisitions in Colombia totaling approximately US$1,570 million (a 137.1% increase over the same time period). The trend in our return on average asset (RoAA) changed since December This shift was the result of (i) consolidation of CorpBanca Colombia for a full year since 2013 and of Helm Bank for a full year since 2014; and (ii) the higher UF variation in 2014 (Δ+2.05% in 2013 vs. Δ+5.65% in 2014) along with low monetary policy interest rate in Chile During 1Q 2015 RoAE remained stable compared to December 2014 and the industry average. Our 1Q 2015 returns demonstrated that greater business diversification has resulted in an increasing revenue stream Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 RoAE (%) Δ + K ~US$350mn July 2011 Δ + K ~US$570mn May-Jun months trailing Δ + K ~US$620mn Jan-Feb 2013 RoAA (%) months trailing CorpBanca Chilean Industry CorpBanca Chilean Industry Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 * Equity: Average equity attributable to shareholders excluding net income and provisions for mandatory dividends.

6 ,5 % 8,0 % 7,5 % 7,0 % 6,5 % 6,0 % 5,5 % 5,0 % 4,5 % 4,0 % 3,5 % 3,0 % 2,5 % 2,0 % 1,5 % 1,0 % 0,5 % 0,0 % Market Share 6 In Chile our market share as of March 31, 2015, on an unconsolidated basis, was 7.6%, reflecting an increase of 33 bp compared to March 31, 2014 and of 12 bp compared to December 31, This increase reflects our focus on economic sectors, such as project finance and infrastructure activity, that have remained stable growth drivers As of March 31, 2015, according to the SBIF, we were the fourth largest private bank in Chile in terms of the overall size of our loan portfolio, with 11.3% of market share on a consolidated basis In Colombia, despite the ongoing integration process relating to the Helm Bank merger, our market share remained stable, reaching 6.4% as of February 28, 2015, according to the SFC Loans CorpBanca in Chile (Ch$bn) MkSh CorpBanca in Chile Loans CorpBanca in Colombia (Ch$bn) MkSh CorpBanca in Colombia 7.27% 7.30% 7,.75% 8.37% 7.25% 7.22% 7.44% 7.55% 6.50% 6.53% 6.34% 6.40%* 2.92% 5,177 5,448 5,242 5,197 5,012 5,469 6,814 1,883 8,277 7,909 8,040 8,970 9,204 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Mar-14 Dec-14 Mar-15 *As of February 28, 2015.

7 Loan Loss Allowances / Total Loans 7 According to the SBIF, CorpBanca has maintained one of the lowest credit risk indexes (total loan loss allowances / total loans) in the Chilean banking industry over the past five years, consistent with one of our core pillars relating to high quality loan portfolio Dec-11 Dec-12 Dec-13 Mar-14 Dec-14 Mar-15 CorpBanca CorpBanca (Chile) Chilean Industry Note: Loan Loss Allowances / Total Loans Includes CorpBanca Colombia since May 2012 and Helm Bank since August 2013; Source: SBIF and CorpBanca.

8 NPL 8 The chart to the left illustrates how our consolidated non-performing loan (NPL) ratio compares to the industry average in Chile We believe that our risk management processes and methodology enable us to identify risks and resolve potential problems on a timely basis CorpBanca s high asset quality was maintained following the acquisition of Banco Santander Colombia in May 2012 and Helm Bank in August % 2.2% 2.1% 2.2% 2.1% 2.1% 1.6% 1.2% 1.1% 1.0% 1.3% 1.2% Dec-11 Dec-12 Dec-13 Mar-14 Dec-14 Mar-15 CorpBanca Chilean Industry Note: NPL Includes CorpBanca Colombia since May 2012 and Helm Bank since August 2013; Source: SBIF and CorpBanca.

9 BIS Ratio (%) TIER I (%) 9 Following the capital increase during 1Q 2013 in connection with the acquisition of Helm Bank, CorpBanca has maintained strong BIS ratios With the consolidation of Helm Bank s risk weighted assets and the goodwill deduction, the trend in the capital ratios remained sound, higher than regulatory minimum (8%) and our internal minimum (11%). As is common during the first quarter of each year, our Capital Ratios are affected by the dividend distribution and only one quarter results Dec-11 Dec-12 Dec-13 Mar-14 Dec-14 Mar-15 BIS Ratio (%) TIER I Ratio (%)

10 QUESTIONS?