April 2007
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. Unless otherwise stated, figures are presented in ThCh$ as of February 2007. Exchange rates considered in the preparation of this document are: -Ch$/US$ : 538.96 -Ch$/UF : 18,343.65
Corp Banca Established in 1871 as the Bank of Concepción Investor group led by Mr. Álvaro Saieh purchased a majority interest in 1995 (1) The bank was renamed to Corp Banca in 1997 Aquired Corfinsa and Condell, two finance companies, in 1998 Market Capitalization of approx. US$ 1.2 billion(2) Total assets of US$ 7.0 billion(3) No. 5 private sector bank with a loan market share of 6.2% (3) Initial Public offering in 2002 Listed on the NYSE on November 2004 International Ratings: BBB+ (S&P), BBB+ (Fitch) 73 branches country-wide operated under the brand names Corp Banca and Banco Condell 2,554 employees (3) Branches 3 3 2 3 Santiago 7 3 30 4 8 1 1 1 4 (1) Transaction closed on January 2, 1996 (2) As of February 28, 2007 (3) Unconsolidated information as of February 28, 2007
Organizational Structure CORP BANCA Chief Executive Officer Commercial Areas Support Areas Retail Chief Operating Officer Corporations Large Corporations and Real Estate Information and Technology Chief Financial Officer Corporate Controller International and Treasury Legal Services Corp Banca Capital and Subsidiaries Risk Commercial Credit Risk Human Resources Marketing Compliance
Corp Banca s Strategic Plan Growth Profitability drivers Portfolio Quality Efficiency Intensify growth in profitable segments (Retail, SMEs) Increase client data base Increase client transactions (Credit Cards, Checking Accounts) Credit standards Sound allowance policies Solid risk valuation models Cost control culture State of the art technology Centralization of internal processes Cross selling (Cash Management, Foreign Trade, Mortgages, Checking Accounts) Focus on Fees
ROE (%) The Bank s Successful History Purchase of the Bank of Concepción Purchase of Corfinsa and Condell finance companies IPO of Corp Banca (2002 ROAE = 20.2%) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Feb-07 25% 3.74% 20.1% 20% 17.4% 3.14% 3.16% 15.6% 12.0% 14.8% 13.3% 15% 2.50% 9.9% 10% 2.62% 5.0% 5% 0.5% 0% 2.21% 2.24% 2.24% 2.12% 1.72% (5%) (1.4%) (4.2%) 1.56% 1.40% 1.46% (10%) (7.4%) (15%) (10.3%) Efficiency Ratio: 80.3% 82.0% 98.8% 91.3% 78.7% 59.3% 47.6% 38.8% 38.2% 39.8% 39.9% 50.13% 58.27% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Allowances / Loans (1) Phase I: Purchase Phase II: Cleansing of the loan portfolio Phase III: Efficiency and Segmentation (1) Pro forma Corp Banca and Banco Condell, net of inter-bank transactions Phase IV: Solid Equity Phase V: Retail and Commercial Growth / Balanced Portfolio
Loan Portfolio Structure 10 0 % 90% 80% 70 % 82.4% 79.9% 76.4 % 73.9% 71.0 % 69.6% 60% 50 % 40% 30% 20% 17. 6 % 20.1% 23.6% 26.1% 29.0% 30.4% 10 % 0% 2002 2003 2004 2005 2006 Feb-07 Commercial Retail
Loan Portfolio Growth TTM * Institution Total Growth Commercial Growth Retail Growth Total Mkt. Share Mkt. Share Variation Santander 12.3% 7.3% 21.1% 22.3% (0.5%) Chile 14.5% 13.2% 17.7% 17.7% (0.3%) BCI 15.8% 16.7% 13.6% 12.5% - BBVA 20.4% 25.4% 10.4% 8.4% 0.3% Corp Banca 15.2% 10.4% 33.2% 6.2% - Desarrollo 18.0% 15.5% 28.1% 3.9% 0.2% Security 20.7% 20.8% 20.5% 3.0% 0.1% Scotiabank 10.0% 15.8% 2.2% 2.4% (0.2%) Industry 15.3% 14.8% 16.5% (*) As of February 28, 2007
Risk Policies Risk Classification Past due loans / Total Loans (1) Feb. 2007 1995 Feb-07 Nat. Nat. Intern. 1.3% Deposits < 1 year Level 2 Level 1 F2 Deposits > 1 year A- AA- BBB+ 0.6% 0.7% 0.8% 0.8% 0.8% 1.0% 1.0% Letters of Credit A- AA- Subordinated bonds BBB A+ 0.2% Shares Level 4 (2) Level 2 Citibank Corpbanca Chile Industry Santander BCI Scotiabank BBVA Desarrollo Corp Banca has one of the lowest indicators of past-due loans in the industry. Source: Fitch, Feller Rate, SBIF, and Corp Banca. (1) Pro forma Corp Banca with Banco Condell. (2) Ratings as of 2001.
Products
Retail Checking Account Sales 6 2.0 17% 5 1.5 100% 66% 42.1 49.3 10 bp 1.0 1.0 1.0 2.82 2.92 0.5 0.5 0.6 0 06 07 06 07 06 07 Monthly Sales (Th #) Quartly Average Sales (Th #) Stock (Th #) (*) Market share of retail checking account stock 06 07 Market Share* (%)
No. of Checking Accounts and Balances Corporate Division Feb-06 Feb-07 Var. (%) Industry Average Balance (MCh$) 90,706 102,401 12.9% 3,945,138 Number of Clients 9,157 9,056 (1.1%) Number of Accounts (#) 10,089 9,985 (1.0%) 285,657 Ave. Bal. per Account (MCh$) 8.99 10.26 14.1% 13.81 Retail Division Feb-06 Feb-07 Var. (%) Industry Average Balance (MCh$) 45,158 50,335 11.5% 1,837,349 Number of Clients 41,489 48,637 17.2% Number of Accounts (#) 42,066 49,271 17.1% 1,687,581 Ave. Bal. Per Account (MCh$) 1.07 1.02 (4.8%) 1.09 Note: Industry figures are as of November 2006
Consumer Loan Sales 22% 40 389 35 30 25 20 15 10 5 0 11.5 30% 13% 14.9 14.1 15.9 06 07 06 07 Monthly Sales (BCh$) Quartly Average Sales (BCh$) 319 06 07 Loan Stock (BCh$) 6.4 6.6 06 07 Market Share (%) 20Bp
Mortgage Loan Sales* 2.0 25.1 50% 1.5 1.0 0.9 200% 1.0 150% 16.7 2.5 3.3 80Bp 0.5 0.3 0.4 0 06 07 06 07 Monthly Sales (M U.F.) Quartly Average Sales (M U.F.) 06 07 Loan Stock (M U.F.) 06 07 Mk. Share (%) * Includes retail banking, mortgage loan center and external sales force
Credit Card Sales 15.0 14.5 14.0 13.5 13.0 12.5 12.0 11.5 11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 3.1 6.6 113% 3.8 7.5 97% 06 07 06 07 Monthly Sales (Th #) Quarterly Average Sales (Th #) 122 180 06 07 Card Stock (Th #) 47%
Credit Cards Feb-06 Feb-07 Industry Activity Purchases (Th U.F.) 515 892 73.4% 20.7% Total Consumption (Th U.F.) 633 1,079 70.4% 32.0% Market Share Accumulated Purchases 3.23% 4.63% 1.41% Monthly Purchases 3.28% 4.65% 1.37% Credit in Cards (MCh$) 22,640 37,320 64.8% Card Stock (#) 122,054 179,977 47.5% 18.0% Purchases / Cards (U.F.) 3.60 5.01 39.1% 9.5%
Focus on Fees (BCh$) 8 7 6 5 4 3 2 1 0 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
Financial Information
Loans (MCh$) February 2007 Feb-07 Prior Mth Year 12 Mths Feb-07 (MCh$) (MCh$) (MCh$) (MCh$) (ThUS$) Commercial Banking 2,489,194 (21,925) (28,876) 266,871 4,618.5 Commercial Loans* 1,515,693 11,207 6,326 203,556 2,812.3 Foreign Trade Loans 226,396 (16,723) (10,928) 7,864 420.1 Other Mortgages 187,172 (2,776) (3,920) (12,055) 347.3 Lease Contracts 233,165 9,500 6,259 21,080 432.6 Factored Receivables 60,974 (4,169) (10,674) 10,550 113.1 Contingent Loans 265,794 (18,965) (15,939) 35,876 493.2 Retail Banking 816,420 18,988 37,281 203,803 1,514.8 Consumer Loans* 453,612 9,838 17,046 81,000 841.6 Housing Mortgages 362,807 9,150 20,235 122,803 673.2 Past Due Loans 21,137 769 1,996 (3,836) 39.2 Total, net of interbank 3,326,750 (2,169) 10,400 466,838 6,172.5 Demand Deposits, net of clearing 249,862 11,604 (4,133) 67,339 463.6 Time Deposits 1,756,688 23,037 58,501 174,474 3,259.4 (*) Includes: Overdrafts Note: Prior Balances have been restated for inflation
Income Statement As of December 31, As of February 28, 2005 (MCh$) 2006 (MCh$) (MCh$) 2006 (ThUS$) 2006 (MCh$) 2007 (MCh$) (MCh$) 2007 (ThUS$) GROSS OPERATING RESULTS 124.282 113.492 (10.789) 210.577 7.668 10.680 3.012 19.817 Interest and adjustments, net * 107.792 105.516 (2.276) 195.777 7.412 9.590 2.179 17.794 Fees, net 15.360 19.095 3.735 35.430 1.239 1.627 388 3.019 Gains and losses from trading activities 5.349 481 (4.869) 892 (333) 791 1.124 1.467 Foreign exchange transactions 1.909 214 (1.695) 398 260 (330) (590) (613) Other operating income, net ** 3.071 (219) (3.290) (407) (107) 27 135 50 External sales force expenses (9.200) (11.595) (2.395) (21.513) (802) (1.024) (222) (1.901) OPERATING EXPENSES (54.833) (60.230) (5.397) (111.752) (4.276) (6.015) (1.739) (11.160) PROVISIONS AND WRITE-OFFS, GROSS (22.075) (23.581) (1.506) (43.752) (2.223) (3.130) (907) (5.808) RECOVERED LOAN WRITE-OFFS 8.243 8.915 671 16.541 712 677 (35) 1.256 INCOME FROM SUBSIDIARIES 7.707 7.099 (609) 13.171 487 640 153 1.188 BUSINESS RESULTS 63.325 45.695 (17.630) 84.783 2.368 2.852 484 5.292 NON-OPERATING RESULTS *** (1.486) (338) 1.148 (627) (193) (128) 65 (237) INCOME BEFORE INCOME TAXES 61.839 45.357 (16.482) 84.156 2.175 2.724 550 5.055 INCOME TAXES (9.206) (6.252) 2.954 (11.600) (256) (354) (99) (657) NET INCOME 52.633 39.104 (13.528) 72.555 1.919 2.370 451 4.397 EQUITY ACCOUNT VARIATION (8.462) 5.510 13.972 10.224 3.368 66 (3.302) 123 ADJUSTED NET INCOME 44.171 44.615 444 82.780 5.287 2.436 (2.851) 4.520 (*) Includes: Fees from loans in the form of Letters of Credit and Monetary Correction (**) Includes: Loss on sale of assets received in lieu of payment, gain on sale of leased assets and unrealized gains and losses of UF-Peso Forward contracts. (***) Includes: Gain on sale of assets received in lieu of payment, goodwill amortization and collection expenses.