Institutional Presentation 4Q18...Institutional Presentation 4Q18 | 2 | Source: Itaú Colombia Itaú...

March 2018

Itaú Colombia Institutional Presentation 4Q18

| 2 |

Source: Itaú Colombia

Itaú Colombia | Highlights

Successful advance in the implementation of the Itaú model in Colombia, in accordance

with our strategic plan.

Diversification and reduction in concentration of the Bank’s funding. Focus in structurality

Strength in Credit-Risk evaluation

Results show a trend of recovery, towards building sustainable profitability in the long

term.

Levels of Capital remain stable, and sound among our peers.

The Bank has a better Balance-Risk position compared to prior years, and a stronger

Liquidity-Risk position than the average for the Colombian Banks.

Customer-centered: new and differentiated offer to simplify the structure of the individuals

segment. Introduction of Personal Bank in 2018

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Itaú Colombia | Who we are


1-Includes 3.651.550.022 shares owned by Saga III SpA that are under custody. 2- Includes 508.725.981 shares owned by Cía. Inmobiliaria y de Inversiones Saga SpA that are under custody. 3- Since April 2016 Itaú Unibanco increased it´s participation by 4.56%, percentage sold by the Saieh Family according to what was established in the Shareholder´s Agreement.4- Itaú (Panama) has international license.

Itaú

CorpBanca

Itaú CorpBanca

Colombia

CorpGroup Helm Minority

66.28% 12.36% 20.82% 0.54%

Itaú FiduciariaItaú Securities

Services

Itaú

Comisionista

de Bolsa

Itaú

(Panamá)3

Itaú Corredor

de Seguros

94.0% 94.5% 95.0% 100%

Itaú Casa

de Valores

(Panamá)

100%

ItaúUnibanco 1

Saieh Family 2

IFC

Others

38.14%

28.57%

3.32%

29.97%

80.0%

3

We maintain the group’s structure with Itaú CorpBanca in Chile as our parent company and Itaú in Brazil as controlling shareholder.

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Employees: 1,692

Branches + CSBs: 85

ATMs: 176

Argentina

Employees: 5,820

Branches + CSBs: 199

ATMs: 464

Chile

Employees: 86,801

Branches + CSBs: 4,428

ATMs: 47,301

Brazil

Colombia¹

Employees: 3,495

Branches + CSB: 161

ATMs: 174

Employees: 1,117

Branches +CSBs: 27

Points of Service OCA: 35

ATMs: 61

Uruguay

CIB

Minorista

Mexico | CIB

Employees: 8

Source: Itaú Unibanco

1- Considers employees and branches from Panama

Employees: 844

Branches + CSBs: 40

ATMs: 300

Non-bank Correspondents: 59

Paraguay

Peru

Representative

Office

Panama

Itaú Unibanco | Retail footprint in Latin America December 2018

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Leading position in Brazil

(1) Includes financial guarantees provided and corporate securities.(2) Represents Net Income adjusted for certain non recurring eventsdescribed in the 4Q18 MD&A – Executive Summary.(3) Calculated using Recurring Net Income / Average Equity. For annualizedcalculation method, please refer to Historical Series Spreadsheet.(4) Calculated using Recurring Net Income / Average Equity. For annualizedcalculation method, please refer to the 4Q18 MD&A – Executive Summary.(5) See “Efficiency Ratio” slides in this presentation for criteria.(6) Includes impacts from schedule anticipation of deductions and does notconsider the additional dividend and interest on own capital

• US$ 88.3 billion market cap1

• 100,335 employees in Brazil and abroad

• 4,940 branches and CSBs in Brazil and abroad

• 48,476 ATMs in Brazil and abroad

• Brazilian multinational bank

• Major provider of finance for the expansion of Brazilian companies

• In 2017 Itaú Unibanco was elected the The Best Company in People

Management (by “Valor Carreira” magazine) and also recognized as a pro-ethics

company (Pró-Ética), an initiative between the Office of the Comptroller General2

with the private sector, which encourages the voluntary adoption of integrity

measures and corruption prevention in the business sector, being the only

financial institution among the companies approved.

Global Footprint of Brazil’s Top Private Sector Bank | Dec. 30, 2018

Financial Highlights and RatiosAs of and for the quarter ended December 2018

Source: Itaú Unibanco

Exchange rate of BRL 3.8740/ USD as of December 31, 20181- As of December 31, 2018. Source: Economatica.2- Controladoria-Geral da União (CGU)

Total Assets

Total Loans (1)

Stockholders’ Equity

Recurring Net Income 2018 (2)

Recurring Net Income 4Q18 (2)

Long Term Foreign Currency

Recurring ROE 2018 (3)

Recurring ROE 4Q18 (4)

Efficiency Ratio 2018 (5)

Efficiency Ratio 4Q18 (5)

Highlights

Financial Ratios

(Itaú Unibanco Holding)

Common Equity Tier I (6)

Liquidity Coverage Ratio

USD 425.8 Bn

USD 164.4 Bn

USD 34.0 Bn

USD 6.6 Bn

USD 1.7 Bn

Moody’s: Ba3

Fitch BB

S&P BB-

21.9%

21.8%

47.6%

48.7%

15.9%

172%

Itaú Unibanco at a glance

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1- Itaú Unibanco and CorpGroup appoint the majority of the members of the board of directors; 2- Pursuant to the Shareholders Agreement, the Directors appointed by Itaú Unibanco and CorpGroup shall vote together as a single block according to Itaú Unibanco’srecommendation. 3- Responsible for the technological integration process in Colombia

Board Chile

Itaú CorpBanca CEO

Milton Maluhy

CFO

Gabriel

Moura

CRO

Mauricio

Baeza

Treasury

Pedro

Silva

Marketing &

Products

Rogério

Braga

Colombia

Álvaro

Pimentel

Wholesale

Christian

Tauber

Retail

Julián

Acuña

Human

Resources

Marcela

Jiménez

Legal &

Compliance

Cristián

Toro

IT

Luis

Rodrigues

Itaú CorpBanca Colombia CEO

Álvaro Pimentel

CFO

María C.

Vandame

CRO

Juan Ignacio

Castro

Treasury

Derek

Sassoon

Communic.

& Institut. Relat.

Carolina

Velasco

Wholesale

Jorge

Villa

Retail

Hernando

Osorio

Human

Resources

María Lucía

Ospina

Legal & General

Secretary

Dolly

Murcia

Operations

Liliana

Suárez

IT

Bernardo

Alba

Board Colombia

Chairman

Milton Maluhy

Chairman

Jorge Andrés Saieh Guzmán

Board Chile 1 2 Board Colombia

Chairman

Milton Maluhy

Ricardo Villela Marino

Eduardo Mazzilli de Vassimon

Boris Buvinic Guerovich

Andrés Bucher Cepeda

Pedro Samhan Escandar

Roberto Brigard Holguín

Luis Fernando Martínez Lema

Carmiña Ferro Iriarte

Rafael Pardo Soto

Juan Echeverría González

Gabriel Moura

Rogério Braga

Mónica Aparicio Smith

Matrix reporting to CEO

Colombia and functional

reporting to ITCB

Functional reporting to CEO

Colombia and matrix reporting to

ITCB for coordination of specific

themes

Franchise, Products

& Digital

Luciana

Hildebrandi

3

Fernando Concha Ureta

Jorge Selume Zaror

Fernando Aguad Dagach

Gustavo Arriagada Morales

Bernard Pasquier

Audit Comitee

CAE

Emerson Bastián

Operations

Jorge

Novis

Itaú CorpBanca | Strong and integrated Corporate Governance

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Sustainable performance in the long term

2016 2017 2018

Change of strategy for the IT integration

Liquidity and Market risks alignment

Gradual reduction in the market-risk limits

Implementation of operational-risk standards

Beginning of Wholesale Loan Portfolio revision

Completion of IT migration

Digital strategy

Reorientation of Retail Banking

Customer Service Quality

Culture phase II

Reorientation of financial results

Incorporation of Corporación Financiera Itaú BBA (people and assets)

Introduction of the Itaú Brand

Beginning of technological migration

Wholesale-Credit project

Restructuring of the Retail-Credit area

Beginning of Retail Loan Portfolio revision

Creation of Franchise, Products & Digital

Evaluation of products and businesses

Creation of the Commission of Capital

Culture phase I

Itaú Colombia | Accomplishments

The Bank continues with its plan of implementation of Itaú’s model in Colombia. Successfully completes the milestones set for 2018


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Source: Superintendencia Financiera & Itaú Colombia. Exchange rate of COP 3249.75 per 1 USD as of December 31, 2018

1- Includes cities and major municipalities 2- Non-performing loans over 90 days in the commercial and consumer portfolios, and 120 days in mortgage portfolio. 3- Depuration in the number of accounts due to the technologic migration process.

Itaú Colombia’s Footprint as of December 31, 2018

USD$9.3BN

USD$6.4BN

3,445

Gross Loans

Assets

Employees #

ATMs #

174

399 MClients# 3

Branches #

161

Market share: 4.7%

TIER I: 9.7%

Total Capital Ratio: 14.6%

NPLs 90 days2: 2.9%

Net Inc. FY17: USD -37.3 MM

Net Inc. FY18: USD +3.2 MM

Bank #7 in Colombia by assets, with presence in 30 locations in the Country1 and one in Panama

Itaú CorpBanca | Highlights

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Source: Itaú Colombia. Exchange rate of COP 3249.75 per 1 USD as of December 31, 2018

Net Income Dec-18 (USD millions)

12-month variation

Itaú Colombia | P&L concepts

The Bank is redirecting it’s income generation towards recurring sources and more profitable businesses, aligned with it’s strategy of sustainable profitability in the long term.

3.2

340.1

46.1

53.9

164.4

269.8

2.7

+95% -9% -21% -3%-7%

TaxesCost of

Credit

Financial Margin

from marketFees

Financial Margin

from clients

Administrative

expensesNet Income

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1- 12 months net Income over 12 months average of equity and assets

Quarterly Income (USD millions)

Itaú Colombia | Profit

Since 2017 Itaú shows a trend of recovery in it’s financial results, ending the year 2018 with a Net Income of USD 3.2 millions and ROE of 0.3%.

18.29.4

-28.1

-45.9

-9.8 -10.2 -9.0 -8.3 -5.2 -0.2

5.3 3.3

1Q16 2Q16 3Q18 4Q18

Net Income 2016: - $46.4 Net Income 2017: - $37.3

1Q17 2Q17 3Q17 4Q173Q16 4Q16 1Q18 2Q18

Net Income 2018: + $3.2

-3.4 -3.0-2.1 -0.8

0.3

-0.4 -0.3 -0.2 -0.1

0.0

ROE ROA

Dec-17 Mar-18 Jun-18 Sep-18

-2.0

-3.6

0.3

-1.3

1.0

0.0

3.1

-1.0

3.2

0.1

1.6 1.6

Jan-18 Feb-18

Mar-18

Apr-18

May-18 Jun-18 Jul-18

Aug-18

Sep-18 Oct-17 Nov-18 Dec-18Dec-18

12.5

1.6

Banks

Dec-18

ROE & ROA1 (%)Monthly Income 2018 (USD millions)

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Source: Superintendencia Financiera & Itaú Colombia

1- NIM = (Loans Interest – Deposits Interest expenses) / Gross Loans. Includes the cost of bonds, rediscounted loans and foreign currency loans. Annualized monthly NIM

Itaú Colombia | Net Interest Margin

The Bank’s NIM maintains it’s recovery trend

NIM1 (%)

Loans and Deposits Implicit Rates (%)

2016 average NIM4.0 2017 average NIM4.6 2018 average NIM5.2

4.16 4.41 4.724.01 4.40 4.51 4.57 4.81 4.78 4.43

5.02 4.95 5.03 4.70 4.96 5.02 5.205.70 5.27 4.95 4.93 4.85 5.15

5.83 5.92

7.50 7.50 7.25 7.00 7.006.25 6.25

5.50 5.50 5.25

5.00 4.75 4.75 4.50 4.50 4.50 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25

1216 0117 0217 0317 0417 0517 0617 0717 0817 0917 1017 1117 1217 0118 0218 0318 0418 0518 0618 0718 0818 0918 1018 1118 1218

NIM CenBank Rate

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

0117 0217 0317 0417 0517 0617 0717 0817 0917 1017 1117 1217 0118 0218 0318 0418 0518 0618 0718 0818 0918 1018 1118 1218

Loans Bonds TDs CenBank Savings

11.1

6.8

6.0

4,3

3,4

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Itaú Colombia | Funding evolution

The Bank maintains it’s focus on structural funding

Funding Mix (%)

TDs by duration (%, USD Billion)

Less than

6 months

From 6 months and

less than 12 months

From 12 months and

less than 18 months

18 months

or more

8 8 7 8 8 8 7 8 9

28 27 31 31 29 29 27 31 30

51 53 50 50 51 53 53 49 47

12 12 12 11 11 10 13 12 14

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18

Bonds

TDs

Savings

Checking

15%

14%

16%

55%

ItaúDec-17

13%

18%

23%

46%

ItaúDec-18

18%

17%

17%

48%

BanksDec-18

$3.1 $2.7 $45.9

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1- Funding: Savings and Checking accounts, Term Deposit and Bonds

Itaú Colombia | Liquidity Management under Basel III standards

Continues with a strong liquidity management maintaining an LCR (Liquid Coverage Ratio) above 100%

Liquid Coverage Ratio - IRL 30 days (%)

Ratio between Loan Portfolio and Funding1 (%, USD Bn)

200%

250%

300%

350%

400%

450%

262%

6.3 6.3 6.3 6.2 6.0 5.9 6.0 5.9 6.06.7 6.5 6.6 6.4 6.0 5.9 5.9 5.8 5.7

93.9% 96.3% 95.2% 97.7%100.3% 101.4% 102.2% 101.4%

106.2%


Net Loans

Deposits

Ratio

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Loans by Type1 (USD Bn, %)


1- Gross Loans

Loans by Segment1

35%Corporate

35%Individuals

11%Medium

Enterprises

5%Small

Enterprises

8%Construction

3%Institutional

3%Private

66% 66% 66%

55%

23% 23% 21%

28%

11% 12% 13%14%

3%

Dec-16 Dec-17 Dec-18 BanksDec-18

Commercial Consumer Mortgage Microloans

$ 6.6 $ 6.4 $ 6.4 $ 136.5

Itaú Colombia | Loan Portfolio evolution and mix

The focus will be increasing the size of the Retail Banking business, reaching a proportion similar to that of the average of Banks in the medium term.

35%

35%

11%

5%

8%3% 3%

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Source: Superintendencia Financiera & Itaú Colombia.

1- Loans past due over 90 days for Commercial an Consumer portfolios, and 120 days for Mortgage portfolio.

Itaú Colombia | Credit-Risk Ratios

Itaú Colombia maintains a conservative position as to Credit-Risk evaluation and provisions policies, anticipating cases of credit deterioration

NPLs 30 days (%)

Coverage 30 days NPLs (%)

Itaú

Banks

NPLs 90 days 1 (%)

Coverage 90 days NPLs (%)

2.9 3.0

3.53.7 3.8

4.8

4.0

4.6

4.03.1

3.94.2

4.4 4.3

4.8 4.9 4.94.5


179.6164.5

150.5 146.8166.0

137.1152.6

128.5

152.5

155.5

128.2 125.2 124.9134.0

123.9 125.0 125.3137.3


2.0 1.92.1

2.52.9 3.0 2.9 3.1 2.9

2.12.4

2.83.0 3.1 3.2

3.5 3.73.5


253.7265.0

254.2

216.5 218.9 216.5 210.2191.0

207.4

228.9

203.1183.5 179.0 186.4 184.2

172.1 168.5179.0


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Risk indicator = Allowance for Loan Losses / Gross Loans (%)

Source: Superintendencia Financiera & Itaú Colombia,

1- Quarterly Expense.

LLP expense / Gross Loans 1 (%)

Itaú Colombia | Loan Provisions

On the second half of 2016 the Bank evaluated it’s Wholesale Loan Portfolio, and on second half of 2017 the Retail Loan Portfolio

5.25.0

5.3 5.5

6.36.5

6.1

5.96.0

4.8 5.05.2

5.55.7

6.0 6.1

6.2 6.2


1.4

0.4

0.7 0.6

0.9

0.6 0.5 0.4 0.50.7

0.50.7 0.7

0.7

0.7 0.70.6 0.7


Itaú Banks

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Source: Superintendencia, Itaú Colombia, Reports of each bank.

Exchange rate of COP 3249.75 per 1 USD as of December 31, 2018

Itaú Colombia | Capital Ratios

The Regulatory Capital Ratio remains stable and adequate

Non-consolidated capital ratio Dec-18 (USD MM)

Non-Consolidated Capital Ratio Evolution (%)

Consolidated capital ratio benchmark Dic-18 (%)

1,016

244

772

355

25

1,153

Tier 1 w/odeductions

Good will Tier 1 SubordinatedDebt

Other RegulatoryCapital

9.7% 14.6%

9.7 9.5 9.3 9.4 9.3 9.4 9.2 9.6 9.7

3.5 3.3 3.4 3.3 3.4 4.5 4.5 4.7 4.9


Tier I Tier II

13.7 14.3 14.613.1 12.8 12.7 12.7 12.7 13.8

16.0

20.7

13.015.1 14.6

Bancolombia Bogotá Occidente Davivienda Itaú

Non-Consolidated capital ratio benchmark Dec-18 (%)

10.1 8.9 10.28.0 9.4

3.4 4.6 2.44.0

4.5

Bancolombia Bogotá Occidente Davivienda Itaú

Tier I Tier II

13.5 13.9

11.913.5 12.6

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Source: Itaú Colombia, Rating Agencies

Itaú Colombia | Risk Ratings

Itaú Colombia has an investment grade rating of BBB-, and a AAA local rating

Fitch BRC S&P Moody’s

Colombia Sovereign BBB / StableOct-17

BBB- / StableJan-18

Baa2 / NegativeFeb-18

Issuer Default Rating – IDR

(International)BBB- / Stable

Mar-19

National, Long-Term AAA / StableJan-19

National, Short-Term BRC 1+Jan-19

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Itaú Colombia Institutional Presentation 4Q18

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