Banco Itau Chile · BCS:ITAUCL
Banco Itau Chile — Itaú CorpBanca — Non-Deal Roadshow (November 2018)
29 slides from Banco Itau Chile's roadshow presentation, Nov 21, 2018
Slide 1: Itaú Corpbanca NDR
Itaú Corpbanca NDR November 21st, 2018 | London Itaú CorpBanca November 2018
Slide 2: Disclaimer
Disclaimer • This presentation is not an offer for sale of securities. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. No representation or
Slide 3: Agenda
Agenda Global Macroeconomic Backdrop Our Bank Strategic Fronts 1. Itaú Management Model 2. Digital Transformation 3. Business Growth in Retail 4. Customer Satisfaction
Slide 4: Global Macroeconomic Backdrop
Global Macroeconomic Backdrop GDP Growth (%) Interest Rates (EOP) - % 6.6 7.5 6.1 5.8 5.3 5.8 4.6 4.7 5.3 4.8 5.0 4.8 4.8 4.0 3.9 4.0 4.5 4.5 3.8 4.3 4.3 3.5 3.5 3.8 3.0 3.3 3.0 3.3 3.5 3.5 2.7 3.0 2.3 2.5 2.8 1.8 2.0 1.8 1.3 1.5 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(e) 2010 2011 2012
Slide 5: Agenda
Agenda Global Macroeconomic Backdrop Our Bank Strategic Fronts 1. Itaú Management Model 2. Digital Transformation 3. Business Growth in Retail 4. Customer Satisfaction
Slide 6: Our Bank: Resulting from the merger of BIC and Corpbanca
Our Bank | Resulting from the merger of BIC and Corpbanca: Two different strategies |6|
Slide 7: Integration Milestones: Integration Process Timeline
Integration Milestones | Itaú CorpBanca’s Integration Process Timeline 2016 2017 2018 Merger Transition Construction • Team building: senior and middle • Completion of retail migration and client • Full focus on client satisfaction management segmentation in Chile • Focus on increasing and sustain
Slide 8: Our Bank: Highlights
Our Bank | Highlights We are the 5th largest private bank in Chile and the 6th 1 banking group in Colombia Regional footprint & main indicators 2 3 Assets 2 US$ 34.3 bn US$ 9.9 bn US$ 44.2 bn Loans 2 US$ 24.9 bn US$ 7.3 bn US$ 32.2 bn Market Share 10.4% 2 4.7% 4 Headcount 2 5,780 5 3,498 6 9,278 Bra
Slide 9: Agenda
Agenda Global Macroeconomic Backdrop Our Bank Strategic Fronts 1. Itaú Management Model 2. Digital Transformation 3. Business Growth in Retail 4. Customer Satisfaction
Slide 10: Strategic Fronts: Key drivers for Itaú regional internationalization
Strategic Fronts | Key drivers for Itaú regional internationalization process 1 Segmentation model Itaú Management Model Focus on efficiency Discipline on capital 2 Culture of innovation and transformation Digital Transformation Efficiency and improvement of user experience Seamless inte
Slide 11: Strategic Fronts: Key drivers for Itaú regional internationalization
Strategic Fronts | Key drivers for Itaú regional internationalization process 1 Segmentation model Itaú Management Model Focus on efficiency Discipline on capital 2 Culture of innovation and transformation Digital Transformation Efficiency and improvement of user experience Seamless inte
Slide 12: Itaú Management Model: Experienced senior management
1 Itaú Management Model | Experienced senior management to implement model Board Chile Audit Committee Itaú Corpbanca CEO CAE Emerson Bastián Milton Maluhy CFO CRO Treasury Marketing & Colombia Wholesale Retail Human Legal IT Operations Products Resources Gabriel Mauricio Pedro Rogério Álvaro Christ
Slide 13: Wholesale Banking: Current scale allows for better segmentation
1 Itaú Management Model | Current scale allows for better segmentation Individuals Companies By monthly income By annual sales (CLP MM) (USD MM) Private Bank Corporate Wholesale Banking Investments > USD 1MM Over $100 Personal Bank Large Over $2.5 From $8 to $100 Itaú Branches Middle Retail Banking
Slide 14: Itaú Management Model: Individuals segmentation overview
1 Itaú Management Model | Individuals segmentation overview Fully implemented segmentation model with well defined identity and value proposition, aimed at optimizing service level, satisfaction and profitability per client. Branch profile in Chile Itaú Personal Bank Itaú Sucursales 22 Itaú Personal
Slide 15: Loan growth reflects current risk appetite
1 Itaú Management Model | Loan growth reflects current risk appetite Total Loans (Ch$ Tn) Market share D% Loans 3Q'18/3Q'17 Δ +2.6% ITCB in Chile Financial System 2.6% 8.7% Δ +1.0% -0.6% 8.4% 16,0 15,9 15,9 16,2 16,4 7.5% 9.0% 1,7 15.9% 9.3% 1,4 1,5 1,6 1,6 3,5 3,6 3,7 3,8 3,8 13.3% 12.9% 12.6% 12.3
Slide 16: Loan portfolio – run off portfolio
1 Itaú Management Model | Loan portfolio – run off portfolio 16,323 16,378 1,314 CAGR (%) 1,664 Legal Day Sep-18 Var ($) CAGR (%) Financial One in b illion of Chilean pesos System 3,289 3,806 Commercial 10,909 11,719 (810) -2.8% 4.9% 1,916 384 Commercial (core) 10,525 9,803 722 2.9% n.a. Commercial
Slide 17: Focus on synergies: Compared evolution of total expenses
1 Itaú Management Model | Focus on synergies: Compared evolution of total expenses In billion of Chilean pesos 2009 2010 2011 2012 2013 2014 2015 2016 2017 8M'17 8M'18 1 Total Expenses - Itaú CorpBanca 220 255 275 402 545 732 736 801 768 500 522 (-) Itaú CorpBanca Colombia - - - (74) (191) (290) (25
Slide 18: Estimated synergies captured to date
1 Itaú Management Model | Estimated synergies captured to date1 Adjusted Total Expenses1 evolution – ITCB growth rates (Ch$ Bn) +3.5% +5.4% +1.4% 23 6 14 424 447 404 410 384 306 331 239 257 207 2009 2010 2011 2012 2013 2014 2015 increase 2016 increase 2017 increase 2018 Adjusted Total Expenses1 evol
Slide 19: Current regulatory & Estimated BIS III capital ratios
1 Business Growth in Retail | Current regulatory & Estimated BIS III capital ratios Current regulatory capital ratio evolution (LGB) Estimated1 BIS III capital ratio (new LGB) 14.4% 12 bp -1 bp -4 bp 1 bp -0,7% 11.1% Tier II 4,4% 3,7% -2,6% 14,3% 14,4% +/- Tier I 10,0% 7,4% Jun.18 Capital Basico Sub
Slide 20: Strategic Fronts: Key drivers for Itaú regional internationalization
Strategic Fronts | Key drivers for Itaú regional internationalization process 1 Segmentation model Itaú Management Model Focus on efficiency Discipline on capital 2 Culture of innovation and transformation Digital Transformation Efficiency and improvement of user experience Seamless inte
Slide 21: Digital Transformation: Client experience, Digital banking and Value offer
2 Digital Transformation | Client experience, Digital banking and Value offer Continuous improvement of Advancing with roll-out of new digital Review and improvement of benefits and the look and feel of our digital services and offerings. Executing a offers linked to stronger transactionality channe
Slide 22: Digital Transformation: Increasing digital transactions
2 Digital Transformation | Increasing digital transactions Higher adoption of our App 144 more CLIENTS since Jan’17 Increasing transactions # sales of retail installment loans 91% 77% 23% 9% Apr'16 Sep'18 Sales through traditional channels Sales through Digital Channels (Internet + App) | 22 |
Slide 23: Strategic Fronts: Key drivers for Itaú regional internationalization
Strategic Fronts | Key drivers for Itaú regional internationalization process 1 Segmentation model Itaú Management Model Focus on efficiency Discipline on capital 2 Culture of innovation and transformation Digital Transformation Efficiency and improvement of user experience Seamless inte
Slide 24: Business mix an opportunity for retail growth
3 Business Growth in Retail | Business mix an opportunity for retail growth LTM Sep 2018, Ch$ Bn Loans breakdown by segment¹ Interest Rates Average Itaú Top 3 Corpbanca 26,022 28,549 26,151 16,091 100% =2 Current 6.7 13.5 13.9 11.2% 9.9% Consumer 15.7% 16.1% Top 3 rates w/ current mix 6.7 6.0 6.2 23
Slide 25: Funding mix an opportunity to increase profitability
3 Business Growth in Retail | Funding mix an opportunity to increase profitability LTM Sep 2018, Ch$ Bn Total Funding Breakdown Interest Rates Average Itaú 30,454 33,702 33,376 19,564 Top 3 Corpbanca 100% Current 2.9 12.3% 0.2 0.3 Checking accounts and deposits 23.5% 29.2% 29.9% Top 3 rates w/ curre
Slide 26: Business Growth in Retail aimed to balance our business mix
3 Business Growth in Retail aimed to balance our business mix Installment Loans market share 7.5% 7.4% 7.2% 7.0% 7.1% 7.4% 7.7% 7.9% 8.0% 7.9% DEC 2014 MAR 2015 MAR 2016 MAR 2017 JUN 2017 SEP 2017 DEC 2017 MAR 2018 JUN 2018 SEP 2018 12-months installment loans growth: Itau vs. Financial System 20.6%
Slide 27: Recurring RoTE / Recurring RoTA
3 Business Growth in Retail | Recurring RoTE / Recurring RoTA1 RoTE / RoTA – Consolidated 13.7% 11.7% 11.8% 10.8% 10.8% 10.5% 6.7% 5.9% 0.7% 5.8% 0.8% 0.7% 0.9% 0.7% 0.7% 0.7% 0.8% -0.3% 0.4% 0.4% -0.7% 0.4% 0.0% 0.0% -3.8% -10.8% 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 9M'
Slide 28: Strategic Fronts: Key drivers for Itaú regional internationalization
Strategic Fronts | Key drivers for Itaú regional internationalization process 1 Segmentation model Itaú Management Model Focus on efficiency Discipline on capital 2 Culture of innovation and transformation Digital Transformation Efficiency and improvement of user experience Seamless inte
Slide 29: Itaú Corpbanca NDR
Itaú Corpbanca NDR November 21st, 2018 | London Itaú CorpBanca November 2018