CORPBANCA Unique Growth Strategy. February 2012

Transcription

1 CORPBANCA Unique Growth Strategy February 2012

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$13.13 billion in loans as of December % market share in Chile (45 bp gain in the last 12 m period) Net Income: US$237 million in 2011 Leader in efficiency and risk management Efficiency ratio: 41.2% (Dec-11) Risk Index*: 1.5% (Dec-11) Loan Portfolio Breakdown (Dec-11) Commercial Residential Mortgage Consumer 17% 6% 77% #1 private bank in growth over the last 5 years by total loans Loans CAGR 06 11: 15% ROA: 1.4% and ROE : 16.6% as of Dec-11 BIS Ratio: 14.5% and TIER I: 9.5% in Dec-11 Loan Portfolio : US$13.13 bn Network Distribution (Dec-11) National coverage: 116 branches and 431 ATM (Dec-11) Important recognitions Santiago 46% Northen Chile 27% Best Banking Group 2011 (World Finance) 5 th safest bank in Latin America (Global Finance) 12 Salmon Awards in the last 5 years and 3 FundPro Awards Southern Chile 26% More than 3,500 employees Condell 47% Investment Grade A- global scale rating (Standard & Poor s) CorpBanca 53% AA national scale rating (Feller Rate and ICR) *Risk Index = Loan loss allowances / Total Loans // Note: Figures expressed in USD were converted at CLP /USD Number of Branches: 116 4

5 Shareholding Structure INSURANCE COMP. 0.81% CORPVIDA & CORPSEGUROS 2.91% ADR s & FOREING INV. 5.32% BROKERAGE FIRMS 6.53% OTHERS 17.47% January 2012 CORP GROUP BANKING S.A % AFP s 6.51% SAGA LTDA. 9.22% Board of Directors Jorge Andrés Saieh Guzmán Chairman Copesa Chairman and former AFP Provida Director Fernando Aguad Dagach First Vice Chairman Director of companies Jorge Selume Zaror Second Vice Chairman Former CorpBanca CEO and former Director of Chilectra and Entel Julio Barriga Silva Director Former BancoEstado CEO and former Banco Santiago Chairman Francisco León Délano Director Former ABN AMRO Bank Chile and BBVA Chile Director Anita Holuigue Director Director of Grupo de Radios Dial and Director of SCAN Market Research Rafael Guilisasti Gana Director Former CPC and Winery Union President and former Correos de Chile Director Francisco Mobarec Asfura Director Former BCCh Audit Committee & Comp. member and Correos de Chile Director Gustavo Arriagada Morales Independent Director Former Chairman of the Banking and Financial Institutions Commission (SBIF) Catalina Saieh Guzmán Alternate Director CorpVida Chairwoman and COPESA former Director Charles Naylor del Río Alternate Director SMU CFO 5

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

7 CorpBanca Distribution Network Branches XV 1.0% I 2.9% II 4.9% III 2.9% IV 2.9% VI 3.9% VIII 8.8% V 13.7% R.M. 46.1% VII 2.9% IX 2.9% 92 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 ATM XIV 1.0% X 2.9% XI 1.0% XII 2.0% Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 7

8 CorpBanca Commercial Structure Based on a clear customer segmentation Commercial Structure Mortgage 16.1% Dec-09 Consumer 8.5% Commercial Banking Large Corporations & Real Estate Companies & SME Retail Banking Traditional & Private Banking (Middle Upper Income Individuals) Banco Condell (Low Income Individuals) Treasury & International Structured Securities Client Driven Subsidiaries Insurance Brokerage Corp Legal Securities Brokerage Mutual Fund Management Financial Advisory Consumer 7.4% Consumer 6.2% Mortgage 18.9% Mortgage 17.3% Commercial 75.3% Dec-10 Commercial 73.7% Dec-11 SMU Corp Commercial 76.5% Wealth Managment 8

9 COMERCIAL BANKING CORPORATE BANKING CorpBanca Commercial Banking Segments Large Economic Groups Corporations Specific Sector: Airports, Ports, Hospital, Mining, Utilities Size - Over US$ 60 million in sales Real Estate Real Estate Companies Size - Less than US$ 60 million sales in Santiago Medium Cap No limit of size outside of Santiago Does not consider specific sectors mentioned above SME Size - Less than US$ 2 million in sales 9

10 Monthly Income (US$) SMU Corp CorpBanca Retail Banking Segments Equity (US$ths) < 100K ,000 > 1,000K > 10,000 Private Banking Wealth Mgmt 5,000 10,000 Private Banking 2,400 5,000 Traditional Banking 1,200 2,400 <1,200 Condell 10

11 CORPBANCA: Unique Growth Strategy

12 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 Led 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 CorpBanca consolidates its expansion strategy : Agrees to buy Banco Santander Colombia 1 st Chilean bank to have a foreign subsidiary Total investment up to US$1.2 bn (US$1.1 bn: CorpBanca + US$ 70 mn: CorpGroup) Financed with own funds and a capital increase by approximately US$ 450 mn The largest economic group in Colombia, Santo Domingo Group, will enter CorpBanca s ownership 12

13 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 Dec-11 Dec-12E Dec-13E Chile: Strong Economic Fundamentals Real GDP Growth (%) Inflation (CPI) 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 13

14 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 4 th in the banking stability category Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Financial Stability Ranking 2011 Ranking Country Value 1 Saudi Arabia Switzerland Tanzania Hong Kong United Arab Emirates Malasia Chile Singapore Norway China 5.10 Source: World Economic Forum 2011 ranking BIS Ratio and Risk Index 20,0 18, , , * 12,0 10,0 8,0 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 BIS Ratio (%) Risk Index (%) Source: SBIF *as of Nov-11 3,00 2,50 2,00 1,50 1,00 0,50 0,00 14

15 Growing Banking Industry Total Loans (US$ bn) Latin America leader Loans / GDP % % 24% 29% 12% 17% Argentina Mexico Peru Colombia Brazil Chile 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 15

16 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% 6.2% 4.3% (2.8%) (0.9%) (1.3%) E 2012E Real GDP Growth (%) Real Loan Growth (%) Source: Chilean Central Bank 16

17 CorpBanca Our history in a nutshell 1871 Established as Banco de Concepción 1995 Mr. Alvaro Saieh purchases a majority interest 1997 Renamed as CorpBanca 1998 Acquisition of Condell and Corfinsa 2002 Local IPO 2004 Listed on the NYSE 2007 New headquarters and new corporate image 2009 Branch New York 2011 Representative Office Madrid 17

18 CorpBanca, an exceptional management 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% 16.6% 0.5% (1.4%) 2.2% 2.1% 1.7% 1.6% 1.4% 1.3% 1.5% 1.9% 2.0% 1.5% Market Value US$ -800 m (4.2%) Market Cap US$ 3.7 bn (7.4%) ROE Loan loss allowances / Total loans (=Risk Index) 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% 41.2% Source: SBIF, CorpBanca 18

19 CorpBanca, an Exceptional Story Led by a cohesive and experienced management team Name Position Years of Banking Experience Education Fernando Massú T. CEO 30 Engineer U. Adolfo Ibáñez 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. Finance 20 Engineer Business U. de Chile MBA Chicago Javier Barrenechea P. Treasury 18 Engineer Business U. de Chile Andrés García L. Portfolios Manager 9 Engineer Civil Business London 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 Alejandro Longa Human Resourses (I) 15 Engineer Civil U. Federico Santa María de Chile Gabriela Salvador B. Customer Satisfaction 21 Engineer - Business U. de Chile Patricia Retamal B. Synergies 17 Engineer U. de Santiago Jorge Hechenleitner A. Wealth Management 29 Engineer U. Austral Eulogio Guzmán Ll. SMU CORP 27 Engineer - Business U. Católica de Chile 19

20 ,500 7,500 6,500 5,500 4,500 3,500 2, ,00% 7,50% 7,00% 6,50% 6,00% 5,50% Private bank with highest growth rate in last five years Total Loans Total Loans (Ch$mn) Market Share 7.75% 6.31% 6.82% 4, % 4,944 5, % 7.30% 5,469 6,814 3,332 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Main competitors Total Loans MkSh (%) Main competitors Commercial Loans MkSh (%) Total Loans - Market share Commercial Loans - Market Share Dec Dec Chile Santander Estado Bci CorpBanca BBVA Scotia Itaú Security Bice Fuente: SBIF, CorpBanca Chile Santander Bci Estado CorpBanca BBVA Scotia Itaú Bice Security 20

21 Leader in Efficiency and Consistent Profitability Efficiency Ratio vs. Industry (%) Efficiency Ratio vs. Main Banks (%) , Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 CorpBanca Santander Chile Bci BBVA Scotiabank CorpBanca Industry Dec-10 Dec-11 ROE vs. Industry (%) ROA vs. Industry (%) Capital increase: US$350 mn Dec-08 Dec-09 Dec-10 Mar-11 Jun-11 Dec-11 Dec-08 Dec-09 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 CorpBanca Industry CorpBanca Industry Source: SBIF 21

22 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 8,500 7,500 6,500 5,500 4,500 3,500 2,500 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dic-11 ROAE (%) 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 30,0 25,0 20,0 15,0 10,0 5,0 0,0 8,00% 7,50% 7,00% 6,50% 6,00% 5,50% Strategic Focus Positive Results Net income (Ch$mn) ROAE (%) Dec-06 39,104 Dec-07 51, months trailing Dec-08 56,310 Dec-09 85,109 Dec ,043 Dec ,849 10,2 15,7 12,2 14,5 18,5 16,7 12 months trailing 21,0 18,5 25,1 21,3 25,9 21,8 20,6 19,3 CORPBANCA Industry Total Loans evolution Total Loans (Ch$mn) Market Share 7.75% 6.31% 6.82% 4, % 4,944 5, % 7.30% 5,469 6,814 3,332 Source: SBIF and CorpBanca Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 22

23 0.78% 1.00% 0.82% 0.96% 0.77% 0.86% 189% 185% 178% 1.36% 199% 1.38% 1.27% 1.22% 210% 235% 233% 227% 222% 213% Healthy asset quality and improving capitalization Risk Index* (%) vs. Industry (%) Risk Index* (%) vs. Main competitors Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 CorpBanca Industry CorpBanca Santander Chile Bci BBVA Scotia Dec-10 Dec-11 PDL / Total loans Coverage PDLs Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 CorpBanca Industry Source: SBIF, CorpBanca // * Loan loss allowances/total loans CorpBanca Industry 23

24 ROAE (%) ROAE (%) Leader in Efficiency and one of the most healthy in asset quality ROAE vs. Efficiency Ratio (12 m trailing, Dec.11-Dec.10) ROAE vs. PDL / Total Loans (12 m trailing, Dec.11-Dec.10) 48.3% 1,1% Chile 28 Chile 23 Santander Bci 23 CORPBANCA Bci Santander CORPBANCA Industry 19.3% Industry 19,3% BBVA 13 Scotiabank 13 BBVA Scotiabank Efficiency Ratio (%) 8 0,0 0,5 1,0 1,5 2,0 2,5 PDL / Total Loans (%) Source: SBIF and CorpBanca 24

25 Dec-08 0 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 50,0% 40,0% 30,0% 20,0% 10,0% Capital adequacy improvements BIS Ratio (%) Efficient use of capital 50% Dec-08 Dec-09 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 BIS Ratio (%) TIER I (%) Space for SB Subordinated Bonds Ratio SB/Tier one BIS Ratio (%) vs. Industry BIS Ratio (%) vs. Main competitors * 14.5* * * 12.8* * * Dec-08 Dec-09 Dec-10 Dec-11 CorpBanca Industry * As of Nov-11 Fuente: SBIF CorpBanca Santander Chile Bci BBVA Scotia * As of Nov-11 Dec-10 Dec-11 25

26 CorpBanca Diversifying our Funding Dec-08 Others 9% Dec-11 Checking accounts 9% Others 12% Checking accounts 5% Bonds 17% Bonds 8% Mortgage bonds 6% Repurchase agreements 7% Others Domestic borrowings Local borrowings Banker's drafts Bonds Retail Time Deposits 14% Subordinated Bonds Bank Bonds Distribution Time Deposits 6% Institutional Time Deposits 42% Mortgage bonds 2% Repurchase agreements 2% Retail Time Deposits 12% Distribution Time Deposits 13% Institutional Time Deposits 36% 26

27 Unique Growth Strategy Winning strategy that recognizes different needs of customers Segments Corporate Strategy Offers structured solutions, tailored, 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 27

28 ,20 1,10 1,00 0,90 0,80 0,70 0,60 5,50% 5,00% 4,50% 4,00% 3,50% 8,50 8,00 7,50 7,00 6,50 6,00 5,50 5, ,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% Residential Mortgage and Consumer Loans Increasing Residential Mortgage Loans Improving Quality of Consumer Loans Residential Mortgage Loans (Ch$mn) Market Share 5.27% 1, % 4.22% % 1, % % % Consumer Loans (Ch$mn) Market Share 3.68% Dec-08 Dec-09 Dec-10 Dec-11 Dec-08 Dec-09 Dec-10 Dec-11 Residential Mortgage Loans Risk (%) Consumer Loans Risk (%) CorpBanca Industry CorpBanca Industry Source: SBIF Dec-08 Dec-09 Dec-10 Dec-11 Dec-08 Dec-09 Dec-10 Dec-11 28

29 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 29

30 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 JV Structure 51% 49% SMU Overview Leading retailer in Chile 24% market share in supermarkets (Sep-11) Stores in Chile: 411 (Dec-10) // 572 (Sep-11) Format (Sep-11) Supermarket: 340 stores Wholesale: 145 stores Convenient Stores: 64 stores Home Improvement: 23 stores Revenues 2010: US$ 2.3 bn Revenues 2011(e): US$ 3.3 bn (US$ 2.3 bn as of Sep-11) Source: SMU 30

31 US$ 350 mn Capital Increase: Fundamentals Improve competitiveness and strengthen presence in specific 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 Capitalize on commercial synergies with other companies of the group Accompany investments Chilean companies make abroad New York branch and representative office in Madrid Itaú 4% BBVA 6% CORPBANCA Itaú 4% 4% Falabella 5% BBVA 8% Estado 10% Others 11% Scotia 5% CORPBANCA 10% Consumer Loans Bci 12% Others 9% Santander 26% Chile 22% Commercial Loans Estado 12% Chile 21% Bci 14% Santander 17% CORPBANCA 5% Dec-11 BBVA 9% Residential Mortgage Loans Scotia 7% Bci 10% Falabella 4% Itaú 5% BBVA 7% CORPBANCA 8% Itaú 3% Others 10% Chile 16% Estado 14% Total Others 5% Santander 23% Bci 13% Estado 22% Chile 20% Santander 20% Source: SBIF 31

32 CORPBANCA CONSOLIDATES ITS EXPANSION STRATEGY 32

33 International Expansion Advantages in financing Chilean companies investing abroad and foreign companies that invest in Chile Nueva York (2009) Madrid Representative Office (2011) 33

34 1 st Chilean bank to have a foreign subsidiary CorpBanca acquires a 95% interest of Banco Santander Colombia (BSC) From the remaining 5% of the shares, CorpGroup will purchase at least a 2.85% stake This operation includes a stock brokerage, an insurance agency and a trustee The acquisitions made by CorpBanca and CorpGroup involves a total amount of up to US$1,225 million The transaction is still subject to the approval of regulatory agencies in Colombia and Chile CorpBanca s total investment in this transaction is US$1,155 million The acquisition will be funded with own resources and a new capital increase of US$450 million approximately The Saieh Group will maintain the control of CorpBanca as well as its ownership percentage Once the new capital increase is executed, CorpBanca would have received more than US$830 million in fresh capital injections during the last six months 34

35 The largest economic group in Colombia enters the property of CorpBanca: Santo Domingo Group (SDG) SDG will invest US$100 million during the coming months SDG has a noteworthy presence in Colombia, in several economic sectors Media Services Logistics Industrial, highlighting its shareholding in SABMiller plc, the second largest brewer company in the world Consequently, two important Latin American business groups join forces as shareholders of Corpbanca to execute its growth strategy, by building business relationships and creating value for its Colombian customer GSD will enter with no shareholders agreement 35

36 Strategic drivers for the transaction Expanding our business to other countries in the Region is one of CorpBanca s goals for the next 3 years Colombia: strong economic fundamentals Attractive macroeconomic environment and demographic variables Positive investment Outlook Low penetration and consolidation in the banking industry, strong and serious banking regulation as the Chilean one Profitable industry with potential to improve efficiency Great potential to support Chilean companies in their expansion to Colombia Colombia presents a level of economic development similar to Chile 15 years ago Government's stated intention to follow the Chilean model for development 36

37 Colombia has growth at attractive rates in recent years Resumen GDP growth and inflation estimations Colombia is the fourth largest economy in Latin America with an expected nominal GDP of approximately US$310 bn in 2011 and a population of approximately 47 mn Macroeconomic soundness, with average GDP growth of 4.4% since 2005 GDP growth projection of ~ 5.0% annual average Controlled inflation below 4% and forecasted at similar levels GDP growth per capita in the region has been led by Colombia and Peru IMF (US$) E 3,7% 3,2% 3,3% 3,0% 4,6% 4,8% 5,0% 5,0% EIU GDP Growth Inflation PIB per capita E 4,0% 3,4% 3,5% 3,1% 4,5% 4,5% 5,0% 5,1% (1) (1) IMF EIU GDP Growth Inflation GDP per capita indexed growth Chile Brazil Mexico Colombia Peru Brazil Chile Colombia Mexico Peru Source: EIU, IMF, Credit Suisse. (1) Bloomberg s Consensus. 37

38 Colombia upgraded in 2011, positive outlook confirmed Foreign direct investments net flow (US$ bn) $12 $10 $8 $6 $4 $2 $ , 2 1 0, 8 0, 6 0, 4 0, 2 0 Commercial balance (US$ bn) $47,7 $46,6 $43,6 $42,3 $37,6 $37,6 $39,6 $38,4 $30,0 $31,2 $32,9 $31, E 2011E 2012E Others Oil & gas Mining Manufacturing Financial services Exports Imports $5 $4 $3 $2 $1 $0 Sovereign risk investment grade BBB / Baa2 Investment grade BBB- / Baa3 BB+ / Ba1 BB / Ba2 BB- / Ba Jun 2011 Country risk (10 years CDS, bps) Jun-08 Jan-09 Aug-09 Mar-10 Oct-10 Jun-11 Moodys S&P Source: EIU, IMF, Credit Suisse. (1) Bloomberg s Consensus. 38

39 Low banking penetration represents an opportunity for a winning strategy Historic evolution of Private sector lending / GDP Cross-country comparison of Private sector lending / GDP 33.7% 35.3% 202.9% 36.5% 35.2% 31.7% 20.9% 21.8% 21.4% 21.0% 22.2% 22.6% 27.1% 30.4% 31.3% 29.9% 138.6% 127.3% 97.5% 54.0% 40.8% 29.9% 24.1% 23.3% 13.5% USA World China Chile Brazil LatAm Colombia Peru Mexico Argentina Financial system loan portfolio projections Mortgage Personal Commercial % ROAE y ROAA industry average Credit risk adjusted industry financial margin 21,6% 18,8% 16,7% 16,4% 2,5% 2,3% 2,2% 2,2% 4.8% 4.3% 4.5% 4.5% may-11 ROAE ROAA May-11 Source: Superintendencia Financiera de Colombia and World Bank. 39

40 Banco Santander Colombia, S.A.: Summary Santander Colombia benefits from a sound financial profile Growing ROE and ROA High reciprocity Healthy asset quality High NPL Coverage Santander Colombia has strong risk and control policies and governance Potential to improve efficiency, given CorpBanca s leadership in Chile CorpBanca has proven to be successful growing organically, which will be key to the next stage of our new operation in Colombia Total Assets Total loans US$ mn (% M Share) 2011 Commercial Consumer Residential mortgages 4, % 2,685 2,.% 1, % % % ROA 1.7% ROE 17.5% Efficiency Ratio (Cost / Income) 54.8% Loan loss Prov. / Total Loans 1.8% Reciprocity 24.7% BIS Ratio 12.9% N Branches 75 N Employees 1,250 40

41 Banco Santander Colombia: well diversified loan portfolio Commercial loan portfolio breakdown by segment Individuals loans portfolio breakdown by segment US$mn (% of total) 423 (25%) 466 (27%) 356 (21%) 295 (17%) 159 (9%) (100%) 85 (9%) US$mn (% of total) 409 (42%) 21 (2%) 67 (7%) 14 (1%) 47 (5%) 194 (20%) 181 (18%) 4 (0%) 309 (32%) 306 (31%) 980 (100%) 123 (13%) 857 (87%) 324 (33%) SMEs Companies Large companies and corporates Private institutionals + transactional banking Public institutions Total High income Mortgage Personal Private banking Medium income Low income Total 41

42 Santander Colombia: Highest asset quality ratios and NPL Coverage in the banking industry 4,4 Loan loss allowances to Total Loans ,1 2,2 Bogota 1,8 2,1 Santander 2,2 2,3 Popular 2,2 2,5 3,4 3,6 Bancolombia Citibank 1,9 2,4 BBVA 2,4 2,6 3,4 2,8 Occidente Davivienda 3,6 Colpatria 2,7 2,7 Industry average Avg Avg NPL Coverage Ratio 2011 Bogota Santander Popular Bancolombia Citibank BBVA Occidente Davivienda Colpatria Industry average Sep11 Dec10 42

43 Transaction summary Key issues Transaction price Approvals Payment Description Price: US$ 1.2 bn for all Santander units in Colombia CorpBanca s investment: US$ 1.1 bn CorpGroup parent company- will invest the remaining US$70 mn Both countries regulatory approvals In cash after CorpBanca s capital increase to be made after the regulatory approvals Acquisition date agreement December 6, 2011 Settlement date 1H 2012 Impact on CorpBanca Earnings per share increase BIS Ratio level will give room to grow in Chile 43

44 CorpBanca will acquire a bank + securities brokerage + trustee + insurance brokerage CorpBanca and CorpGroup % of acquisition of each of the companies included in the transaction Company % acquired Banco Santander Colombia, S.A. Santander Investment Valores Colombia S.A. Santander Investment Trust Colombia S.A. Agencia Seguros Santander Limitada Santander Investment Colombia S.A. At least 97.85% % % % % 44

45 Transaction will require US$450 mm of capital increase Regulatory capital expected at the settlement date US$2.1 bn Art. 80 General Banking Act: Maximum to invest per country 40% Maximum investment as of today US$840 mn CorpBanca ticket to acquire Banco Santander Colombia *US$1.1 bn Delta ticket needed to be financed US$270 mn Art. 80 General Banking Act: Maximum to invest per country 40% Delta regulatory capital to accomplish 40% US$675 mn % Regulatory capital 66.67% Capital increase required US$450 mn * Excluding US$ 45mn for Santander Investment Trust 45

46 In short. Banco Santander Colombia, with total loans of US$2,600 mn and ~3% mkt share, is a very healthy bank well provisioned and well diversified by clients few legal contingencies strong risk management and control policies Total price for the transaction is US$1.2 bn - 2,76x book value CorpBanca will invest US$1.1 bn, CorpGroup will invest US$70 mn Excellent opportunity that matches CorpBanca s strategic goals to expand regionally with the attractive Colombian market Regional expansion with Colombia as corner stone Colombia s stable GDP forecasts, low banking penetration in a very sound political and institutional environment To finance the transaction, CorpBanca will require a capital increase of US$450 mn Capital increase is only due to regulatory requirements that limit Chilean invesments abroad to 40% of the regulatory capital Transaction is not dilutive of the EPS, even considering the capital increase and assuming a very conservative scenario for synergies though the transaction should be accretive in the short term CorpGroup will subscribe entirely its preemptive rights, and it is committed to acquire all shares not subscribed in the preferential offering period, therefore the Group will maintain the control of CorpBanca as well as its ownership percentage 46

47 CorpBanca Summary Impressive growth history Leader in risk and efficiency standards High profitability Consolidated business in our corporate and commercial segments New strategies and management in our retail segments, with positive results so far Unique opportunity as part of an important economic group Outstanding management 47

48 Appendix

49 CorpBanca Financial Results Key Indicators MAIN RATIOS (YTD) Dec-07 Dec-08 Dec-09 Dec-10 Mar-11 Jun-11 Sep -11 Dec-11 Net Income(Ch$ million) 51,049 56,310 85, ,043 29,273 61,546 88, ,894 ROA 1.1% 0.9% 1.3% 1.7% 1.6% 1.5% 1.6 % 1.4% ROE 11.8% 12.8% 18.5% 25.0% 23.3% 23.5% 18.1% 16.6% BIS Ratio 11.6% 10.8% 13.9% 13.4% 12.3% 11.8% 15.3% 14.5% Efficiency Ratio 48.1% 45.6% 38.9% 38.1% 38.6% 40.5% 39.4% 41.2% Risk Index 1.27% 1.38% 1.91% 1.95% 1.87% 1.76% 1.73% 1.54% 49

50 Contact information Claudia Labbé Manager Investor Relations Ph: +56 (2) Add: Rosario Norte 660, 10th Floor, Las Condes Santiago - Chile claudia.labbe@corpbanca.cl 50