Bogotá, August 2015 - Banco CorpBanca Colombia

Institutional Presentation
Bogotá, August 2015
1
CORPBANCA COLOMBIA │BANK’S HISTORY
2014
A strategic alliance was signed between Itaú Chile and
CorpBanca Chile (main shareholder of CorpBanca Colombia)
2013
CorpBanca Colombia acquired Helm Bank and its subsidiaries.
Merger June 1st 2014
2012
Grupo CorpBanca Chile acquired the bank
1997
The Spanish group Santander acquired the bank and changed its
name to Banco Santander Colombia
1942
Changed its name to Banco Comercial Antioqueño and merged
with Banco Santander de Colombia (Blue) under the name
“Bancoquia”
1912
Banco Alemán Antioqueño is established by Colombian and
German businessmen
2
MERGER CORPBANCA - ITAÚ CHILE │PROGRESS
Jan 29 2014
Apr 29 2015
Jun 2 2015
Agreement to
merge
CorpBanca
and Itaú
Chile
(Transaction
Agreement y
Shareholder’
s Agreement)
Delivery of
Expert Report
Exchange Ratio
Amendment of
Transaction
Agreement
Jun 26 2015
CorpBanca’s
Extraordinary
Shareholders
Meeting.
Approval with
88.39% votes
Approval of Brasil, Panamá and Colombia. Waiver IFC
Jun 30 2015
Approval of
Itaú Chile
Extraordinary
Shareholders
Meeting
CorpBanca’s
Board of
Directors
recommend
the operation
Sep 4 2015
Jan 2 2016
May 2 2016
Jan 29 2017
Chile’s
SBIF
Approval
Earliest date to
consolidate the
merger
Latest date to
consolidate the
merger
Maximum date to
sell CorpGroup’s
stake in en
CorpBanca
Colombia
(12.36%)1/
Source: Relevant Information, IRO Chile
1/ Banco CorpBanca Colombia will not distribute dividends until the closing date of the sale
Merger bank’s
Brand: Banco
Itaú or Itaú
3
MERGER CORPBANCA - ITAÚ CHILE │TRANSACTION STRUCTURE
Merger
CorpGroup and
Susidiaries
Itaú Unibanco
100,00%
100,00%
SAGA
Ltda.
HoldCo A
33,58%
Merger of Itaú Chile and
CorpBanca

Resulting property structure:
100,00%
CorpGroup
Banking
Minor
Shareholders
29,48%
3,65%
33,29%

Shareholders Agreement
Colombia’s Minor
Shareholders
Itaú CorpBanca
100,00%
Corporación Financiera
Itaú
(Itaú Colombia)


[66,28]%*
―
Itaú Unibanco: 33,58%
―
CorpGroup and subsidiaries:
33,13%
―
Minor Shareholders: 33,29%
Itaú Unibanco will sign a
shareholders agreement with
CorpGroup to determine corporate
governance issues of the merged
bank
[33,72]%*
CorpBanca
Colombia
Itaú CorpBanca will make an offer to buy 100% of minor shareholders
property
Source: CorpBanca Chile
4
CORPBANCA COLOMBIA │ SHAREHOLDER’S COMPOSITION
CorpBanca
Chile
66,28%
Helm
Holdings1/
20,82%
CorpGroup2/
12,36%
Minor
Shareholders
0,54%
CorpBanca
Colombia
As of April 2015
1/ Through Helm LLC 19,44% and Kresge Stock Holding Company Inc. 1,38%
2/ Through different companies. CG Financial Colombia S.A.S. 8,28%, Inversiones CorpGroup
Interhold Limitada 2,09%, CorpGroup Banking S.A. 1,99%, CG Investment Colombia S.A. 0,00%
5
CORPBANCA COLOMBIA │MERGER CORPBANCA – HELM, TWO STAGES
Banks’
Legal
Merger
Aug. 20
2013
Nov. 29
2013
Mar. 1
2014
Jun. 1
2014
Brokerage
Firms Merger
Sep. 1
2014
2016
time
Merger
Planning
First 100 days
Implementation– Legal Merger Banks

The legal merger implies the use of a
single tax ID (NIT) for both companies
(CorpBanca’s NIT)

The brands and branch network will
continue to operate consistent with past
practice
Monitoring
Period
Implementation–
Merger Brokerage
Firms
Monitoring
Period
Finished
Operational and IT Merger
On going
6
CORPBANCA COLOMBIA │ FINANCIAL GROUP
Helm
Fiduciaria
CorpBanca
Investment
Trust
Helm
Comisionista
de Bolsa
Helm Bank
[Panamá]
Helm Casa de
Valores [Panamá]
7
CORPBANCA COLOMBIA │BRANCH NETWORK
167 branches in the 20
main cities of Colombia1/
181 ATMs
601 thousand clients2/
3.724 employees3/
1/ Armenia, Barrancabermeja, Barranquilla, Bogotá, Bucaramanga, Cali, Cartagena, Caucasia,
Cúcuta, Ibagué, Manizales, Medellín, Montería, Pasto, Pereira, Popayán, Rionegro, Santa Marta,
Tunja, Villavicencio.
2/ As of December 2014.
3/ As of June 2015. Subsidiaries employees included. Bank employees 3.250.
8
CORPBANCA COLOMBIA │ RISK RATINGS1/
LONG-TERM DEBT
DEUDA A LARGO PLAZO
FITCHFITCH
RATINGS
RATINGS
DE
DE
COLOMBIA
COLOMBIA
AAA(col)
perspectiva
AAA (col) Stable
Outlook
estable
DEUDA
A CORTODEBT
PLAZO
SHORT-TERM
F1+ (col)
F1+ (col)
DEUDA A LARGO PLAZO
LONG-TERM DEBT
BRC
STANDARD &
POOR’S
AAA Creditwatch
Negativo
AAA Negative
Creditwatch
SHORT-TERM DEBT
DEUDA A CORTO PLAZO
BRC 1+
BRC1+
Good market position after the merger with Helm
Bank
Resilient quality of loan portfolio. The merged
entities have supplemented their operations.
The merger plan is comprehensive and well
directed
Strengthening of its capital base to support the
merger process
Regarding the merger process between Helm and
Corpbanca progress has been made in
accordance with established schedules.
Its best performance and quality of loan portfolio
will provide significant capacity to address the
potential effects of the economic slowdown in the
country.
It is characterized, among other things, for its high
standards of transparency and corporate
governance that contribute to strengthening the
culture of risk management.
Adequate bank's ability to meet short-term liability
requirements.
1/ BRC’s Rating issued May 2015 and Fitch’s Rating issued July 2015
9
CORPBANCA COLOMBIA │CUSTOMER SERVICE SATISFACTION
Banking sector Satisfaction
Index (CIV) 2014
HELM BANK
DAVIVIENDA
82,6
81,5
CORPBANCA
80,2
CITIBANK
80,2
BBVA
80,1
BCO OCCIDENTE
80,1
COLPATRIA
80,0
SECTOR
80,0
BCS
79,9
BANCOLOMBIA
79,6
POPULAR
78,9
BCO BOGOTA
78,8
AV VILLAS
Helm’s and CorpBanca’s
network branches occupy
1st and 3rd place on the
Colombian banks ranking
in customer service and
quality
Customer Index Value (CIV)
methodology that
objectively and
independently measures the
client’s experience.
Produces the only customer
satisfaction index in the
country.
77,4
10
CORPBANCA COLOMBIA │CORPORATE GOVERNANCE
33% independent Board
Members, in accordance with
the current laws
Board of Directors - Members
1

Monthly Audit Committee with 3 Board
Members, 2 independent

Rules of Procedure for the Board of Directors

Rules of Procedure for Shareholder’s
Meetings

Corporate Governance Committee

Governance Code

Annual Corporate Governance Report

Bylaws and related information published in
CorpBanca’s Web Page

Convergence towards new “Código País”
guidelines. e.g. CRO Chief Risk Officer

Executive Credit Committee with Board
members of Colombia and Chile
Roberto Brigard Holguín*
2
Luis Fernando Martínez Lema*
3
Juan Carlos García Cañizares*
4
Santiago Jaramillo
5
Juan Echeverría González
6
Fernando Massú Taré
7
Carmiña Ferro Iriarte
8
Mónica Aparicio Smith
9
Rafael Pardo Soto
* Independent Members. Board reelected on Shareholders Meeting March 2015
11
CORPBANCA COLOMBIA │ COMMITMENTS AND BEST PRACTICES ON
SUSTAINABILITY
•
•
•
•
Human Rights
Labor Rights
Anticorruption
Environment
• Liders of the Financial Institutions
Network
• Environmental and Social Risks
• Green Products
• Eco-efficiency
• 100 development ratios for the
financial sector
• Guides for policies and processes
• Transparency Report
•
•
•
•
•
Environmental and Social Risks
Green Products
Eco-efficiency
Stakeholders Dialogues
SEMS (Social and Environmental
Management System)
12
CORPBANCA COLOMBIA │ BUSINESS STRATEGY
Corporate Banking

Separation between
transactional business and
structured operations. The later
generates treasury operations
and fees

Focus on Infrastructure sector.
Advantage due to CorpBanca’s
experience in Chile

Cross-selling Financial Leasing
Individual and SME Banking

Cross-selling Mortgages and
Home Leasing

Creation of 10 SMEs centers

Growth in low cost demand
deposits
13
CORPBANCA COLOMBIA │MAIN IMPACTS IFRS - FINANCIAL STATEMENTS 2015
Loan
Portfolio
•
Employee loans are now part of the loan portfolio line
•
Operational Leasing is now part of the loan portfolio line
•
•
Property
and
Equipment
and
Goodwill
•
•
•
Liabilities
•
1/ PPA: Purchase Price Allocation.
Exchange rate 30/06/2015: $ 2.585,11
Home Leasing went from Commercial Loans to Mortgages (it has
no impact on the total amount of loans but has a lower impact on
provisions for loan losses)
Change in depreciation according to its useful life (generates lower
depreciation expense)
Separation of goodwill in a non-amortizable intangible asset, an
impairment test needs to be performed at the end of each period
(USD280 millions), and other intangible assets (USD195 millions
as trademarks and customer relations) with a period of
amortization appointed by the PPA1/ expert. (Previous amortization
USD7 million monthly, with IFRS USD1 million each month)
Origination fees are recognized as incremental cost of bonds
Registration of a liability related to employees benefits with an
actuarial calculation of severance payments, pension liabilities and
quinquenniums
Provisions are recognized only if it is a probable outflow of
resources and there is uncertainty of the amount and timing of the
payment
14
COLOMBIAN BANKING SECTOR │RANKING JUN-15
USD Billions
ASSETS
40,2
27,9
22,7
6.3 %
17,1
11,8 11,4
8,9
8,3
7,3
6,9
56,4
4,7
4,4
4,0
1,2
1,2
0,6
0,6
0,5
0,5
0,4
CorpBanca’s
Market Share
0,3
0,3
0,3
0,1
0,1
LOANS + DEPOSITS
38,0
34,6
6.5 %
27,4
17,9 17,0
13,5
10,8 10,0
9,1
7,6
6,7
5,8
2,1
1,8
Source: Superfinanciera; Analysis: Banco CorpBanca. Exchange rate 30/06/2015: $ 2.585,11
1,0
0,9
0,6
0,5
0,4
CorpBanca’s
Market Share
0,4
0,2
0,2
0,1
0,0
15
COLOMBIAN BANKING SECTOR │RANKING JUN-15
USD Billions
27,8
DEPOSITS
20,0
17,7
14,6
6.5 %
8,9
8,9
6,6
6,3
5,8
5,5
3,9
3,7
3,1
1,0
0,9
0,4
0,4
0,2
0,2
0,2
CorpBanca’s
Market Share
0,2
0,2
0,2
0,0
0,0
GROSS LOANS
28,6
6.4 %
18,0 16,8
CorpBanca’s
Market Share
12,8
9,0
8,1
6,9
5,3
4,2
3,7
3,1
2,8
2,6
1,1
1,0
Source: Superfinanciera; Analysis: Banco CorpBanca. Exchange rate 30/06/2015: $ 2.585,11
0,6
0,5
0,4
0,3
0,2
0,2
0,0
0,0
0,0
0,0
CORPBANCA COLOMBIA │ASSETS COMPOSITION
USD Billions
Growth
Jun.14 – Jun.15
Total Assets
10,8
9,8
1,9
Other
Investment
Portfolio
Net Loans
1,8
1,1
1,7
11,5
1,8
1%
1,8
67 %
6,9
7,1
7,8
Jun-14
Dec-14
Jun-15
Analysis: Banco CorpBanca. Exchange rate 30/06/2015: $ 2.585,11
17 %
13%
COLOMBIAN BANKING SECTOR│LOAN AND DEPOSITS COMPOSITION
Percentage
CorpBanca
CorpBanca
Total Banks
Jun-14
Jun-15
Jun-15
Mortgages
4%
Mortgages
10%
Gross Loans
Consumer
23%
Commercial
Consumer
23%
Bonds
Deposits
plus Bonds
9%
Checking
Acc.
12%
Bonds
Checking
7%
Acc.
11%
42%
Savings
37%
Source: Superfinanciera; CorpBanca’s Analysis
Term
Deposits
12%
Commercial
67%
73%
Consumer
27%
58%
Commercial
Bonds
Term
Deposits
42%
Savings
39%
3% Microloans
Mortgages
Checking
Acc.
15%
11%
Term
Deposits
30%
Savings
44%
18
COLOMBIAN BANKING SECTOR │RISK RATIOS
Percentage
NPLs
Non Performing Loans above 30 days over Gross Loans, %
4,0%
Total Banks
3,5%
3.0%
3,0%
2,5%
2,0%
CorpBanca
1,5%
jun-15
abr-15
mar-15
feb-15
ene-15
dic-14
nov-14
oct-14
sep-14
ago-14
jul-14
jun-14
may-14
abr-14
mar-14
feb-14
ene-14
dic-13
nov-13
oct-13
sep-13
ago-13
jul-13
jun-13
may-13
abr-13
mar-13
feb-13
ene-13
dic-12
Coverage
Loan Loss Allowance over Non Performing Loans above 30 days, %
CorpBanca
161,2%
Total Banks
144.3%
dic-12
ene-13
feb-13
mar-13
abr-13
may-13
jun-13
jul-13
ago-13
sep-13
oct-13
nov-13
dic-13
ene-14
feb-14
mar-14
abr-14
may-14
jun-14
jul-14
ago-14
sep-14
oct-14
nov-14
dic-14
ene-15
feb-15
mar-15
abr-15
may-15
jun-15
200%
190%
180%
170%
160%
150%
140%
130%
120%
110%
100%
may-15
2.3%
1,0%
Source: Superfinanciera; CorpBanca’s Analysis
Numbers between Dec. 2013 and May. 2014 are an estimate of the combined banks.
19
COLOMBIAN BANKING SECTOR │NET PROFITS JUNE 2015
USD Millions
519
Net Income
482
232
124 104
519
72
72
71
62
56
54
38
36
9
8
8
7
6
6
5
2
1
1
5
5
5
2
1
1
0
(1)
Net Income without Goodwill 1/
482
231
124 104
77
72
71
62
56
55
38
36
9
8
8
7
0
(1)
Numbers under IFRS Colombia. Source: Superfinanciera; CorpBanca’s Analysis. Exchange rate 30/06/2015: $ 2.585,11
1/ Godwill amortization January - June USD 7,36 million. For the adjusted net income an income tax of 39% is applied.
20
CORPBANCA COLOMBIA│PROFITABILITY RATIOS
Total Banks
1,90%
1,60%
1,93%
1,43%
ROA
CorpBanca
%
ROE
CorpBanca
2,21%
1,35%
Adjusted
ROA 1/
1,27%
0,84%
0,75%
Jun-14
Dec-14
Jun-15
13,59%
13,74%
16,54%
11,71%
11,60%
13,01%
Accounting
ROA
Adjusted
ROE1/
%
10,92%
6,84%
Jun-14
Source: Superfinanciera; CorpBanca’s Analysis
1/ W/o extraordinary expenses related to the merger. For 2015 goodwill amortization is excluded
ROA: Annualized profits / YTD average assets (including December)
6,17%
Dec-14
Accounting
ROE
Jun-15
21
CORPBANCA COLOMBIA│NON-CONSOLIDATED CAPITAL ADEQUACY RATIO1/
Percentage
15.45%
Total Solvency
Tier 1 Solvency
13.67%
12.73%
12.47%
9,23%
10,02%
CorpBanca
CorpBanca 2/
Total Banks
December 2014
June 2015
June 2015
8,42%
8,03%
CorpBanca
June 2014
1/ 2014 ratios under Colgaap, 2015 ratios under IFRS Colombia.
2/ Goodwill is deducted from Tier 1. Tier 1 solvency ratio w/o goodwill deduction would be 12,16% and
total solvency 16,60%
22
MAIN BANKS IN COLOMBIA│CAPITAL ADEQUACY RATIO DECEMBER 20141/
Non-consolidated
solvency
19,13%
17,89%
Consolidated
Total Solvency
13,29%
12,47%
12,96%
12,32%
11,80%
11,50%
12,29%
10,89%
10,57%
11,80%
Consolidated
Tier 1 Solvency
7,71%
7,75%
Bancolombia
CorpBanca
8,00%
6,15%
Occidente
2/
1/ Six largest banks in terms of Assets. Order high to low consolidated total solvency
2/ Banco de Occidente’s tier1 solvency not available.
3/ BBVA’s consolidated total solvency not available
Bogotá
Davivienda
BBVA
3/
23
www.bancocorpbanca.com.co
24