CORPBANCA UNIQUE GROWTH STRATEGY. July 2013

Transcription

1 CORPBANCA UNIQUE GROWTH STRATEGY July 2013

2 Agenda 2 I. CORPBANCA: TODAY II. III. IV. CORPBANCA: ADVANCING IN THE REGIONALIZATION PROCESS CORPBANCA: CONTINUED STRENGHTENING OF OUR CAPITAL BASE CORPBANCA: CREDIBILITY IN OUR PROJECT V. CORPBANCA: A UNIQUE STRATEGY VI. VII. VIII. FINAL CONCLUSION FINANCIAL SUMMARY APPENDIX

3 CORPBANCA TODAY

4 CorpBanca Consolidated at a glance 4 Consolidated Financial and Operating Highlights May-13 (US$mn) Total Assets 27,984 Total Loans 20,764 Equity 2,600 Net Income (LTM) 273 BIS Ratio 14.4% Loan Loss Allowances / Total Loans 1.7% Total Branches 208 ATMs 552 Loan Portfolio Breakdown (1) US$28.0 billion in total assets US$ 20.8 billion in total loans 4 th largest private bank in Chile 5 th largest bank in Colombia after Helm Bank s acquisition Balance Sheet Structure (1) Colombia 19% Chile 81% Mortgage 17% Consumer 6% Commercial 77% Financial derivatives contracts 2% Financial investments 10% Cash and deposits in banks 4% Repos 1% Other assets 7% Loans 76% Note: Figures expressed in USD were converted at CLP /USD. Source: SBIF, CorpBanca. (1) As reported by the Chilean Banking Authority (SBIF)

5 Who is CorpBanca? a snapshot 5 STRONG TRACK-RECORD OF GROWTH WITH PROFITABILITY The fastest growing bank in Chile # 1 private bank in growth by loans in Chile: 15% CAGR (21% in 2012) 4th largest private bank in Chile by loans 8.4% market share as of Dec-12 (Δ + ~300 bp organically in the last 10 yrs) Successful efficiency and risk management in Chile Efficiency ratio (Oper. Expenses / Avg Assets): 1.7% vs. 2.2% of the Industry (Dec-12) Best Risk Index* among main banks: 1.6% vs. 2.3% of the Industry (Dec-12) OUR POTENTIAL Colombia: Becoming a mayor player in the Colombian Banking Industry Acquires Banco Santander Colombia in Jun-12 9 th largest bank in Colombia 3.0% market share as of Dec-12 (Δ + 25 bp in 2012) 298,500 clients 87 branches, 112 ATMs Forthcoming approval for the acquisition of Helm Bank during 2Q13 Probably the last available franchise in Colombia ~ 7% MkSh by loans and potential access to synergies with a marginal investment Highest standard of corporate governance Listed in BCS (2002) and in NYSE (2004) Investment grade in the global scale BBB+ by Standard & Poor s Baa1 by Moody s Potential access to ~5,000,000 clients and to the largest retail network in Chile (~600 stores) through SMU alliance Competitive advantage in consumer loans across customer segments with low acquisition cost, low transaction cost and low provisions Opening 12 kiosks in 2013 and 100 in the medium term Current strategy leverages from all CorpGroup s companies, taking advantage of the variety of products to offer of added value proposals to our customers, employees and suppliers *Risk Index = Loan loss allowances / Total Loans

6 2012: Net income over US$250 million 6 Banking Industry s Highlights Decrease in Net income (-3.9%): i) Lower variation of the U.F. (150 bp lower than previous year) ii) Slight deterioration in the Efficiency Ratio (from 47.6% to 48.1%) iii) Therefore ROE was impacted (from 17.4% to 14.6%) CorpBanca s Highlights Net income decreases less (-2.3%) despite: i) Incorporation of Banco Santander Colombia Colombia (BSC) in Jun-12 => only 7m of results for CorpBanca for 2012 ii) Successful rebrandring from BSC to CorpBanca Colombia only 2m after the acquisition iii) Costs related to the acquisition impacted our NIM and efficiency ratio (Expressed in Ch$bn) 136,39 119,04 122,85 120,08 85,11 28,44 35,55 50,12 50,77 52,63 39,10 51,05 56, * * LTM May-13

7 2,0 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 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 Sustained healthy asset quality 7 Risk Index* (%) vs. Industry (%) (1) Net Prov. for Loans Losses / Loans (%) vs. Industry (2) months trailing CorpBanca (Chile) CorpBanca Industry Dec-08 Dec-09 Dec-10 Dec-11 Jun-12 Dec-12 Mar-13 CorpBanca CorpBanca (Chile) Industry NPL / Total loans (1) Coverage NPLs (1) 1.8% 3.0% 2.0% 2.7% 2.4% 2.5% 2.2% 2.3% 1.6% 1.2% 1.2% 1.1% 102% 82% 96% 100% 94% 93% 136% 97% 141% 149% 108% 107% Dec-09 Dec-10 Dec-11 Jun-12 Dec-12 Mar-13 Dec-09 Dec-10 Dec-11 Jun-12 Dec-12 Mar-13 CorpBanca Industry CorpBanca Industry Notes: (1) Includes CorpBanca Colombia since May 2012; (2) Includes CorpBanca Colombia since June Source: SBIF and CorpBanca.

8 CORPBANCA ADVANCING IN THE REGIONALIZATION PROCESS

9 CorpBanca is creating a regional footprint 9 New York Branch Madrid Rep. Office Panama Colombia Chile CorpBanca s Regionalization (2009 to date) Launch of the New York Branch Launch of the Rep Office in Madrid Creation of the International Wholesale Banking to lever CorpBanca s regional presence and indirectly lend to qualify corporates in the Region Through M&A activity, CorpBanca will have relevant operations in Chile, Colombia and Panama

10 CorpBanca: A mayor player in the Colombian Banking Industry 10 Santander Colombia acquisition (May-12) STRONG PLATFORM Forthcoming acquisition of Helm Bank ( 2Q13) SYNERGIES AND VALUE CREATION 3.0% MkSh by loans (Δ+25bp in 2012) #9 Why? Sound financial profile Growing ROE and ROA Well diversified loan portfolio Large customer base High reciprocity Healthy asset quality High NPL Coverage Strong risk and control policies and governance Potential to generate synergies given CorpBanca s strong track record in Chile Product portfolio Increasing client base (Chilean companies entering the Colombian market) Efficiency ratios Funding costs Need of scale Complementary with CorpBanca Colombia Complement in products Well positioned Synergies CorpBanca has a proven track-record in a more sophisticated market, which will be key in the next stage of its new operation in Colombia

11 CorpBanca successfully overcomes first challenges of Successful change processes of CONTROLLER MANAGEMENT IMAGE reflected in figures Financial Highlights (US$mm) Banco Santander Colombia Banco CorpBanca Colombia Dec.2011 MkSh Dec.2012 MkSh Strategic actions that explain the increased Loans 2, % 3, % Export wholesale banking model to Colombia Chilean customer re-segmenting to give greater focus to our cross-border relations Impeccable rebranding process: CorpBanca fast positioning in the Colombian market and important customer retention Efficiency Ratio 59.4% 56.1%* Leveraging existing structure to enhance growth (revenue grew 20% vs. Expenses growing at 4%) Retention of key employees and internal promotion (before the departure of the Santander Group Net Income ROE % 2.4% 88* 18.3%* 2.4% Were translated into better results, despite the changes inherent in an acquisition process * Excludes rebranding costs. Source: Superintendencia Financiera de Colombia.

12 A major player in the Colombian banking industry 12 Main indicators (US$mm) CorpBanca Colombia Helm Bank Proforma Mar.2013 MkSk Ranking Mar.2013 MkSh Ranking Mar.2013 MkSh Ranking Total Assets 5, % 12 6, % 10 11,693 6,1% 5 Total Loans 3, % 10 4, % 8 8,406 6,8% 5 Deposits 3, % 13 4, % 10 7,797 6,2% 6 Equity ,354 Net Income 98.0* 2.4% % * RoAA 2.0%* % 1.4% %* RoAE 19.6%* % %* Efficiency Ratio 53.1%* % %* NPL 2.1% 4 2.8% 7 2.5% BIS Ratio 13.5% % % Branches 87 n.a. 87 n.a. 176 n.a. Headcount 1,608 n.a. 2,167 n.a. 3,775 n.a. * Excludes rebranding costs. Source: Superintendencia Financiera de Colombia. CB Col Loan portfolio Consumer 34.2% Housing 6.1% CB Col Funding Borrowings 13.7% Checking accounts 13.8% Bonds 4.1% Other 2.0% Time deposits 47.0% HB Loan portfolio Consumer 14.7% Housing 9.2% HB Funding Borrowings Bonds 5.6% 10.3% Checking accounts 8.5% Other 1.0% Saving accounts 40.7% Commercial 59.7% Source: Superintendencia Financiera de Colombia. Saving accounts 19.4% Commercial 76.1% Time deposits 34.0%

13 Substantial change in results with acquisition of Helm 13 CorpBanca s ability to achieve ROE> 20% Net Income in Colombia US$mn CorpBanca Colombia * 88 Helm Bank 90 Base case synergies (2 yrs view) 100 Total Colombia 278 CorpBanca Chile stake (67%) 186 Consolidated Net Income CorpBanca Chile (2012) 240 CorpBanca Colombia + Helm (2012) 186 Total Net Income as it is 426 Reach a ROE of 20% implies a growth rate of ~10% per year (2 yrs view) ROE Equity 2,650 ROE (e) as it is (2 yrs view w/growth) 16.1% * Excludes rebranding costs. Source: Superintendencia Financiera de Colombia and Superintendencia de Bancos e Instituciones Financieras de Chile.

14 Synergies and Value Creation Opportunities 14 Three drivers of synergies Revenue synergies Higher rating to reduce funding cost and bargaining power as a larger sized bank Cross-selling opportunities between Helm and CorpBanca s clients segments, e.g. Products: housing leasing Description For corporates: fees from loan syndication Wealth mng t: offshore offering through Panama and Cayman Est. pretax impact / yr* US$ mn Expenses synergies Branches lease-backed Management team optimization - blending of the best Personnel and back office streamlining CorpBanca low cost IT model implementation US$50-60 mn Tax synergies Significant tax benefits derived from acquisition structure US$25-35 mn * Estimations at steady-state, ramp up in ~3 years

15 CORPBANCA CONTINUED STRENGHTENING OF OUR CAPITAL BASE

16 Two successful capital increases in less than 12m to support expansion 16 ~US$1,200 million of new funds increase in 88% TIER I Capital between Apr-12 and Feb-13 Figures in US$mn IPO NYSE Listed 2012: ~US$570 mn (100% for the acquisition of BSC) 2,701 4, : ~US$623mn (~50% for the acquisition of Helm ) 2,126 1,313 1, ,061 1,108 1,149 1,192 1,110 1,173 1, * Equity Market Cap * As of May 2013 Note: Figures expressed in USD were converted at CLP /USD Source: CorpBanca

17 Solid Capital Position for Future Growth 17 Capital Adequacy Ratios ,8 13,9 13,4 9,1 9,5 12,8 8,9 14,5 13,9 9,5 11,1 10,4 8,2 14,4 13,3 10,4 Dic-08 Dic-09 Dic-10 Dic-11 Dic-12 May-13 BIS Ratio (%) BIS Ratio w/mr (%) TIER I Ratio (%) Source: CorpBanca.

18 CORPBANCA CREDIBILITY IN OUR PROJECT

19 Successful international capital placement: ~ 8x oversubscription 19 Transaction Summary Offer size 12,015,233,260 Minimum price CLP 6.25 Allocated price CLP 6.25 Date 16/01/2013 Amount offered CLP MM 75,095 Total demand CLP MM 580,879 Over demand (times) 7.7 Chile 7.1% Europa 13.7% Brasil 6.5% Colombia 6.3% USA 66.4% Order Book Summary Segment Order USD Allocated amount % Offer Demand ADR 319,245,684 81,134, % 3.93x AFP 110,700,867 11,177, % 9.90x Hedge Funds 34,963,158 13,943, % 2.51x Long Only 16,410,000 41,831, % 0.39x Related parties 10,000,000 10,007, % 1.00x NIMS 226,315, % - Other foreign Inv. 59,273, % - Others locals 113,473, % - Retail 252,289, % - Insurance Co. 26,315, % - Securities Funds 22,757, % - Mutual Funds 31,157,895-0,0% - Total USD 1,222,903, ,095, % 7.7x Successful international placement: US$160mn 93% of foreign allocation The remaining represented the amount granted to the AFP by the importance of their role in the market and the company Hedge Funds 8.8% Related Parties 6.3% Higher volumen to the concentration of ADR Long Only 26.5% AFP 7.1% ADR 51,3% Generates greater liquidity and presence of these instruments

20 US$800mn 3,240% Senior Unsecured Notes due In January Highlights 2013, de la CorpBanca Transacción placed U.S. $ 800 mn in 5-year bonds on the international market High demand from investors allowed to price at a spread of T +245 bp to yield 3.240% Issue characteristics Ranking Senior Unsecured Issue Rating Baa1/BBB+ (Moody s/s&p) Format SEC Registered Size US$800 mn Coupon 3.125% Issue Price Yield 3.240% Benchmark 0.750% UST due 2017 Spread vs. Benchmark +245 bp Maturity January 15, 2018 Transaction Highlights Book orders ~ U.S. $ 3,000 mn (6.0 x oversubscription) from more than 213 high quality accounts Strong momentum generated by the issuance allowed to rise from US$500 mn to US$800 mn and pricing within the initial range between 250 to bp Largest individual transaction of a Chilean bank Distribution by Type of Investors 6% 5% Distribution by Region 11% 9% 69% Asset Mgmt Bank & Trust Hedge Fund Insurance Private Bank 26% 5% 10% 59% US LatAm Europe Asia

21 CORPBANCA A UNIQUE STRATEGY

22 WE HAVE A SOLID BASE TO KEEP GROWING 2013 Planning: Our aspirations 22 GENERAL ASPIRATION WHAT CORPBANCA IS DOING WELL We want to be a large bank (12% market share) Being a benchmark for companies with Chilean and Colombian controllers Highly profitable (ROE> 20%) and efficient (index * 40% -45%) Develop a strong bond with our customers # 1 private bank in growth by loans in Chile Our profits have reached record levels in the past three years We are positioned in our customers as a competitive, creative and agile alternative We are the first Chilean bank to become a regional bank * Operating expenses / Operating income

23 Strategic Actions: SER 23 Synergy Generate new business links creating a range of products and services integrate various business units of the Bank, subsidiaries and group companies Efficiency Optimize the use of our resources and increase our productivity by rethinking the way we do things Reciprocity Strengthen relationships and trust with our customers to become "YOUR" bank: with whom do most of their financial

24 CorpBanca increases structural liquidity through long term funding 24 LONG TERM FUNDING INCREASED IN CHILE FROM 21% TO 35% IN PERIOD December 2008 May 2013 Time deposits 58% Checking Acc 4% Mortgage Bonds 6% Repos 6% TIER I Capital 7% Bonds 8% Others 11% Time deposits 54% Checking accounts 7% Repurchase agreements 1% Mortgage bonds 7% Others 8% TIER I capital 8% Bonds 15% * Checking Acc = Ch$ billion Loans = Ch$4,944 billion * Checking Acc = Ch$ billion Loans = Ch$ 8,461 billion Source: CorpBanca. * + Checking Acc = 2.2x in period + Loans = 1.7x in period

25 CORPBANCA FINAL CONCLUSION

26 Unique Investments Highlights 26 7 Potential Synergies of the integration of acquisitions already made and with the Saieh Group 1 Robust macroeconomic fundamentals in Chile 2 Stable financial industry and growing banking industry in Chile 6 Announced acquisition of Helm Bank becoming a major player in the Colombian market 5 Attractive growth potential from cross border expansion into Colombia 4 Sustained efficiency and asset quality 3 Outstanding track record of growth and profitability in Chile

27 FINANCIAL SUMMARY Figures in Ch$ million, Chilean GAAP

28 Financial Summary 28 As of May 31, 2013 (Expressed in MCh$) CorpBanca Full CB Chile CB Colombia Adjustments CB Chile CB Colombia Chile/Colomb Adjusted Adjusted Net Interest Income 145,409 94,384 51,025-5,357 99,741 45,668 Fees and income from services, net 40,455 28,438 12,017 28,438 12,017 Trading activities, net 36,193 16,893 19,300 2,826 14,067 22,126 Foreign Exchange Gains (Losses), net 1,931-4,774 6,705-4,774 6,705 Other Operating revenues 6,260 4,019 2,241 4,019 2,241 Gross Operating Margin 230, ,960 91,288-2, ,491 88,757 Provisions for Loan Losses -34,849-20,691-14, ,158 Operating Expenses -110,749-70,659-40,090 4,340-66,319-44,430 Other operating expenses -6,977-5,853-1,124-5,853-1,124 Income from Inv. in other companies 1, Income before taxes 78,070 42,215 36,485-6,871 49,086 29,614 Efficiency Ratio 48.1% 50.8% 43.9% 46.9% 50.1% As of May 31, 2012 CB Chile Δ May13 vs May12 CB Chile Adjusted Net Interest Income 88, % Fees and income from services, net 25, % Trading activities, net 10, % Foreign Exchange Gains (Losses), net 19,374 - Other Operating revenues 3, % Gross Operating Margin 147, % Provisions for Loan Losses -19, % Operating Expenses -69, % Other operating expenses -7, % Income from Inv. in other companies % Income before taxes 51, % Efficiency Ratio 47.3% Adjustments: MCh$5,357 funding of Colombia MCh$2,826 Hedge taxes in US$ (counterpart in income tax expense, not included here) MCh$4,340 intangible asset amortization and integration costs Colombia

29 Disclaimer 29 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.

30 Contact Claudia Labbé Manager Investor Relations +56 (2) Rosario Norte 660, 18 th Floor, Las Condes Santiago - Chile claudia.labbe@corpbanca.cl

31 APPENDIX

32 CORPBANCA ADDED-VALUE PROPOSALS

33 Synergies with Saieh Group: Our added-value proposal 33 Leverage from all CorpGroup s companies, taking advantage of the variety of products to offer of added value proposals to our customers, employees and suppliers Competitive advantage in consumer loans across customer segments Low acquisition cost, low transaction cost and low provisions

34 CORPBANCA OWNERSHIP STRUCTURE

35 Saieh Group mantains control: 53.5% ownership 35 Shareholder % total share capital Dec-12 % total share capital May-13 Corp Group Banking S.A % 45.06% Cía. Inmob. y de Inversiones Saga S.A. 7.79% 5.49% Corp Group Inversiones Bancarias S.A. 4.06% - Cía. de Seguros CorpVida S.A. 2.10% 2.10% Cía. de Seguros CorpSeguros S.A. 0.81% 0.82% Otras sociedades de inversión 0.27% 0.00% Total Saieh Group 60.91% 53.47% IFC % OTHERS 38.7 Ownership structure IFC 5.0 SAIEH GROUP 53.5 Santo Domingo Group 2.66% 2.88% Others 36.43% 38.65% ADRs & Foreign investors 8.25% 12.53% AFPs 7.55% 7.52% Securities Brokerage 6.34% 5.95% Other minority shareholders 14.29% 12.65% Total % % Source: CorpBanca. SD GROUP 2.9 May 31, 2013 Strategic investor joins CorpBanca as significant shareholder IFC PART OF THE WORLD BANK GROUP ACQUIRES 5% EQUITY STAKE and diversifies shareholders base, especially with international investors

36 CHILE STRONG ECONOMIC FUNDAMENTALS AND GROWING BANKING INDUSTRY

37 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-11 Dec-12 Dec-13E 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 Dec-11 Dec-12 Dec-13E Chile: Strong economic fundamentals 37 Real GDP Growth (%) Inflation (CPI) Target Inflation (3%) FDI Inflows (US$ bn) FDI Inflows as a % of GDP Actual Estimate CAGR : 5.0% CAGR: 6.6% % 8.4% % 1.3% 2.4% 1.8% 3.3% 3.2% 1.7% 1.9% 4.8% 4.9% Argentina Brazil Chile Colombia México Perú Source: Banco Central de Chile, IMF and The Economist Intelligence Unit

38 Solid Banking System in Chile 38 Outstanding regulatory framework Respected regulatory institution: Superintendency of Banks and Financial Institutions (SBIF) Proven and stable framework Trust Chile was 7 th in the World Economic Forum s overall financial stability ranking and 11 th in the banking system stability category Efficiency Ratio (%) Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Mar-13 Financial Stability Ranking 2012 BIS Ratio and Risk Index (1) Ranking Country Score 1 Saudi Arabia Switzerland Singapore United Arab Emirates Tanzania Norway Chile Hong Kong SAR Australia Malaysia ,0 18,0 16,0 14,0 12,0 10,0 8, Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Mar-13 BIS Ratio (%) Risk Index (%) 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Source: World Economic Forum 2012 Ranking Source: SBIF // (1) Loan loss allowances/total loans

39 Growing Banking Industry 39 Total Loans (US$ bn) Latin America leader Loans / GDP % 45% 24% 29% 12% 17% Argentina Mexico Peru Colombia Brazil Chile 28 but still low penetration vs. other economies % 84% Loans / GDP 126% 127% 143% Commercial Mortgages Consumer Chile Eastern Europe G7 China Asian tigers Source: SBIF Source: 2010 Business Monitor International

40 Loan growth above GDP growth 40 Real GDP and Total Loan Growth (%) Loan Elasticity / GDP = 1.9x Effect of Asian Crisis 17.6% 19.3% 16.8% 16.0% Effect of Financial Crisis 12.8% 12.9% 9.7% 3.3% 4.1% (0.7%) 4.5% 4.5% 3.3% 2.2% 2.0% 6.0% 5.6% 5.8% 4.0% 4.6% 4.6% 3.7%.1,5% (1.7%) 8.0% 5.2% 6.0% 5.6% 4.5% -1.8% -1.2% E Source: Banco Central de Chile Real GDP Growth (%) Real Loan Growth (%)