Institutional Presentation · Institutional Presentation September 2016 . 2011 2012 Acquisition in...

Institutional

Presentation September 2016

2011

2012

Acquisition in

Colombia:

- Banco

Santander

Colombia

Acquisition in

Colombia:

- Helm Bank

2013

2016

CorpBanca Colombia | Nuestra Historia

Source: Superintendencia & CorpBanca Colombia 1: Head Count 2: Numbers as of December 2015 3: Corporación Financiera Itaú BBA Colombia Figures in USD, constant basis @2879.95

The priority of CorpBanca has been to minimize the impact on its customers adjusting its value proposition, structure, processes and systems.

Footprint 2011:

- Assets: 2.7 Bn

- Loans: 1.8 Bn

- Deposits: 1.9 Bn

- HC1: 1367

- # Branches: 77

- #Branch network: 1

- #Core: 1

Footprint 20131:

- Assets: 4.3 Bn

- Loans: 2.5 Bn

- Deposits: 2.4 Bn

- HC1: 1509

- # Branches: 80

- # Branch network: 1

- #Core: 1

Footprint 2014:

- Assets: 9.7 Bn

- Loans: 6.4 Bn

- Deposits: 6.1 Bn

- HC1: 3232

- # Branches: 170


- #Core: 2

Footprint 20152:

- Assets: 10.9 Bn

- Loans: 7.4 Bn

- Deposits: 7.4 Bn

- HC1: 3234

- # Branches: 173


- #Core: 2

Footprint 20152 3:

- Assets: 0.2 Bn

- Loans: 0.1 Bn

- Deposits: 0.04 Bn

- HC1: 40

- # Branches: 1


- #Core: 1

CorpBanca Colombia | Our History

Source: CorpBanca Colombia

1. This value accumulates interests of Libor + 2.7% per year from August 4, 2015 until the closing date

2. Pending approval from regulators

3. Book Value of Itaú BBA Colombia = COP 319.2 MMM at the end of December 31st, 2015 (equivalent to US$102 millions at an exchange rate of COP3,135.17/US$1)

Offer to acquire the minority interest in CorpBanca Colombia

Structure in Colombia

Itaú

CorpBanca

100%

Corpbanca

Colombia

CorpBanca offered to acquire 33.18% of the aggregate minority interest in

Corpbanca Colombia:

‐ Corpbanca and Helm Co. did not reach an agreement on the final proposed terms

and conditions for the acquisition

‐ CorpGroup has agreed to sell its shares on the proposed transaction (12.36% of the

total shares – aggregate offer for US$330MN1/2 )

Itaú CorpBanca will integrate Itaú BBA Colombia in its structure 2/3

CorpGroup Helm Other

Minoritaries

Itaú BBA

Colombia

66.28% 12.36% 20.82% 0.54%

Financial Group in Colombia

Corpbanca

Colombia

Helm

Fiduciaria

CorpBanca

Investment

Trust

Helm

Comisionista

de Bolsa

Helm Bank

Panamá

Helm Corredor

de Seguros

94.0% 94.5% 95.0% 100%

CorpBanca Colombia | Shareholders Structure

Source: CorpBanca Colombia. Date November 1, 2016

Me

mb

ers

President

Members of the Board

Rogeiro Carvalho Braga 1/

Gabriel Amado de Moura 1/

Juan Echeverría González

Carmiña Ferro Iriarte

Rafael Pardo Soto

Roberto Brigard Holguín*

Luis Fernando Martinez Lema*

Mónica Aparicio Smith*

Milton Maluhy Filho

(*) Independent Board Members

1/ Members pending possession before the Superintendencia Financiera

CorpBanca Colombia | Board of Directors

Source: CorpBanca Colombia:

Board of Directors

CorpBanca Chief Executive Officer

Audit Committee

Jaime Munita

Wholesale

TBD

Retail

Claudia P.

Vélez

Treasury

Derek

Sassoon

IT

Lilian Rocío

Barrios

CRO

Edson Silva

CFO

María Cristina

Vandame

Operations

Liliana Suarez

Legal

&

Compliance

Dolly Murcia

Human

Resources

Andrea Arizala

Ctry Controller

Juan I. Castro Compliance

Carlos Díaz

Communications, Institutional

Relations and Sustainability

Carolina Velasco

CorpBanca Colombia | Senior Management Structure

Source: CorpBanca Colombia, rating agencies, FitchRatings, INC

Moody´s FITCH S&P

BBB- / Negative Sep./2016

BBB / Negative Feb./2016

BBB / Negative Jul./2016

Baa2 / Stable May./2016

Colombia Sovereign

Banco CorpBanca Colombia IDR (Issuer Default Rating)

Banco CorpBanca Colombia Local, Long-Term

AAA / Stable Apr./2016

AAA / Stable Abr./2016

• Viability Rating drives IDR

• Negative trend explained by Colombia’s

operating environment

• Adequate Capital ratios although lower than

international peers

• Good Asset Quality

• Limited Margins Underpins Profitability

• Stable, Moderately Concentrated Funding

• Uneventful Integration

Main Aspects of IDR

CorpBanca Colombia | Risk Ratings

CorpBanca Colombia has an Investment Grade rating of BBB-, and two local ratings of AAA in Colombia

Source: CorpBanca Colombia,

1:Numbers as of September/2016

2: Deposits include Checking and Savings accounts and Term Deposits

3: HeadCount includes Panamá

Bank #6 in Colombia, with 572 thousand clients and presence in 23 cities locally and one in Panama.

Regional footprint & main indicators Sep 20161

CorpBanca Colombia

MS: 6.0%

#Player: 6

TIER I: 9.66%

Total capital ratio: 12.69%

NPLs: 3.3%

Net Inc. FY15: USD ~ 110.8 MM

Net Inc. ‘3Q/16: USD ~ -0.61 MM

CorpBanca Colombia 20161

179

171

3,721

573

6,823

7,568

# ATMs

# Branches

# Head Count

# Clients (thousand)

Deposits USD MM

Gross Loans USD MM

2

3

CorpBanca Colombia | Highlights

Source: Superintendencia & CorpBanca Colombia

Numbers as of September/2016

1: Equity not included

Figures in constant basis @2879.95

Inorganic Growth given merger between CorpBanca and Helm

Detail Assets (USD Bn) Detail Liabilities (USD Bn)1

Before merger

Other Liabilities

Bonds

Deposits

Deposits with

Banks

11.1

Other Assets

Net Loans &

Leases

Investments

Cahs & Due

from Funds

12’-16’

%CAGR

7.3

8.8

9.7

10.5

2012 2013 2014 2015 2016

3.2

4.3

9,1%

18,7%

64,8%

7,4%

6.5

7.3

8.6

9.6

2012 2013 2014 2015 2016

12’-16’ %CAGR

5,8%

7,7%

69,5%

17,0%

9.8

2.9

3.3

%CAGR

3 years

14,3%

%∆

16’-15’

1,7%

%CAGR

3 years

14,0%

%∆

16’-15’

1,9%

11%

20%

9%

14%

19%

7%

38%

15%

18%

11%

CorpBanca Colombia | Assets and Liabilities growth and detail


Numbers as of September 2016

Figures in constant basis @ 2879.95

Commercial loans represent 66.8% of total loans. Total loans grew 2.8% in the past 12 months.

Loans and Leases Mix (USD Bn)

76,0% 70,4%

51,9%

40,8%

66,8% 59,3% 56,9%

18,7% 25,9%

26,0%

34,9%

22,8%

25,8% 27,4%

4,6% 3,7%

22,0% 24,3%

10,4% 14,6%

12,8%

Pee

r 1

Pee

r 2

Pee

r 3

Pee

r 4

C

Pee

rs

Sist

.

Consumer Loans

Commercial Loans

Morgages

Other Loans

% YoY Growth

$17.3 Bn $8.9 Bn $19.2 Bn $13.4 Bn $7.6 Bn $58.9 Bn $130.0 Bn Peer CorpB

2.8% 10.0%

na 3.4%

17.4% 6.2%

-0.5%

3.4%

15.0%

6.3%

CorpBanca Colombia | Gross Loans by Type Evolution

2.1 2.1 2.1 2.3 2.4

2.2 2.5 2.5

3.3 3.1 2.9 3.0 3.0 3.0 2.8

3.1 3.0 3.2

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

CorpBanca Total Banks

3.6 3.7 3.6 3.8 3.9 4.0 4.3 4.3

4.7 4.4 4.4 4.4 4.4 4.4 4.4 4.5 4.6 4.7


CorpBanca

Total Banks

Loan Loss Provisions / Gross Loans (%)

NPLs 30 days (%) Coverage (%)1

More conservative policies, than those of the average of banks, maintain permanently higher levels of LLP over PDL

Source: Superintendencia & CorpBanca Colombia,

1: Loan Loss Provisions / Past Due loans above 30 days

171 174 174 161 164

186 169 172

143 144 150 146 144 147 156

144 151 145


CorpBanca Total Banks

CorpBanca Colombia | Credit Risk Ratios

Source: Superintendencia & CorpBanca Colombia,

Numbers as of September 2016


DDA: Checking Accounts

Liquidity convergence plan in place towards Itaú Unibanco standards. As a result higher share of Time Deposits than Industry.

Funding Mix (USD Bn)

% YoY Growth

38,3% 39,9% 39,2% 39,3%

29,6%

39,1% 41,2%

17,5% 19,1%

8,0% 11,2%

7,5%

13,1% 12,1%

34,0% 30,4%

35,4%

43,8%

52,9%

36,4% 35,8%

10,1% 10,6% 17,4%

5,8% 10,0% 11,4% 10,9%

Pe

er

1

Pe

er2

Pe

er

3

Pe

er

4

Co

Pe

ers

Sis

t.

Checking Account

Saving

TD’s

Bonds

$17.7Bn $7.6 Bn $14.7 Bn $7.9 Bn $18.4 Bn $58.6 Bn $126.5 Bn Peer CorpB

3.9% 9.1%

38.5%

30.9%

-12.9%

-25.9%

11.7%

37.5%

-3.6%

-0.9%

CorpBanca Colombia | Funding Detail and Evolution

Source: CorpBanca Colombia,

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

CorpBanca sufficiently fulfills regulatory indicators and maintains a ratio of Net Loans over Funding below one. The bank is in the process of aligning limits and standards with those of Itaú Unibanco.

Liquid Coverage Ratio (IRL) USD BN)

Ratio between Loan Portfolio and Funding (%, USD MM)1

0

0.5

1

1.5

2

2.5

IRL 7 Days

IRL 30 Days

IRL 90 Days

CorpBanca Colombia | Liquidity

95.5% 95.5% 96.5% 99.0% 97.0% 89.2% 92.2% 90.3%

95.1%

6.3 6.4 6.8 7.0 7.1 7.1 7.1 7.2 7.2

6.6 6.7 7.0 7.1 7.3 7.9 7.7 8.0

7.6

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dic-15 Mar-16 Jun-16 Sep-16

Net Loans

Deposits

1,151 252

900

279 3 1,182

Tier 1/Deductions

Good will Tier 1 Subordinated Debt

Other Regulatory Capital

Tier 1 Consolidated

Tier1+Tier2 Consolidated

Non-consolidated

Consolidated regulatory capital ratio Jun.16 1 (%) Non-consolidated regulatory capital ratio Sep. 16 (USD MM, %)

9.7%

12.8%

Since 2012 CorpBanca has reinvested its net profits. It has a higher consolidated regulatory capital ratio than its peers.


1: Source: Annual reports of each bank.


8.50% 6.78%

9.82% 9.02% 7.40%

17.37%

19.87%

12.63% 12.85%

14.59%

Bancolombia Bogotá Occidente CorpBanca Davivienda

13.20%

11.80% 12.38% 12.40%

13.05%

CorpBanca Colombia | Capital Ratios

66.1% 63.2%

57.4% 55.9% 52.8%

48.1% 48.7% 50.3% 54.9%

76.1% 75.6% 78.7% 79.8% 79.6%

77.3% 80.2%

83.8%

95.5%

3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q16 3Q16

Cost to Income Efficiency (%) Adjusted Efficiency (%)

Synergies and process have sustained the growth of the business and lowered the operational efficiency ratio.


Numbers as of September 2016. 2014 under accounting standards Colgaap, 2015 y 2016 under IFRS.

Cost to Income Efficiency: Personnel and administrative expenses over gross financial margin – 12 months moving average -

Adjusted Efficiency: Personnel, administrative and Loan Loss expenses over gross financial margin – 12 months moving average -

CorpBanca Colombia | Efficiency Ratios

10.33 8.94

7.84 5.94

2.73

16.55

1.25 1.06 0.93 0.7 0.32 2.21

Dec-14 Dec-15 Mar-16 Jun-16 Sep-16

ROE

ROA

Decreasing Net Interest Margins, higher LLP and higher costs of liquidity explain the lower profitability of CorpBanca Colombia compared to its peers.


1 NIM Loans Interest – Deposits Interest expenses / Gross Loans includes the cost of bonds rediscounted loans and foreign currency loans. Annualized monthly NIM

2 12 months net Income over 12 months average of equity and assets for Dec.14 Colgaap Accounting standards

RoE y RoA (%)2

Total Banks (*)

5.87 5.50 5.01

5.41 5.23 5.33 5.28 5.31 5.32 5.10 4.97 4.70 4.73 4.26 4.43

4.02 4.08 4.07 3.59 3.44 3.46

3.98

dec-14 jan-15 feb-15 mar-15 apr-15 may-15 jun-15 jul-15 aug-15 sep-15 oct-15 nov-15 dec-15 jan-16 feb-16 mar-16 abr-16 may-16 jun-16 jul-16 aug-16 sep-16

NIM CenBank Rate

NIM (%)1

7.75

4.50

CorpBanca Colombia | Profitability Ratios

Itaú CorpBanca’s management, after a throughout evaluation, elected Helm Bank’s Phoenix platform as the core banking

legacy system for Itaú CorpBanca’s operation in Colombia.

This strategy will benefit from reduced implementation time and risk when compared to the previous existing strategy that

was based on synergy benefits that do no longer apply in the current scenario.

IBS

CorpBanca

Ch

ile

C

olo

mb

ia

Altair

CorpBanca Colombia (Former Santander Colombia)

Pre

-In

teg

ratio

n

Po

st-

Inte

gra

tion

Phoenix

Helm Bank C

hil

e

Co

lom

bia

Pre

-In

teg

ratio

n

Po

st-

Inte

gra

tion

P

re-I

nte

gra

tio

n

Po

st-

Inte

gra

tion

Rationale: Scale synergies, know-how synergies Rationale: Reduced implementation time and risk

IBS

IBS

CorpBanca

Altamira

Itaú Chile

Altamira

Altair

CorpBanca Colombia (Former Santander Colombia)

Phoenix

Helm Bank

Phoenix

Itaú CorpBanca legacy strategy CorpBanca legacy strategy

Benefits from synergies with Itaú Unibanco

CorpBanca Colombia | Core Banking Legacy System

Thank you www.bancocorpbanca.com.co

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