Annual General Shareholders Meeting · financial margin with clients in Chile Cost of credit...
Transcript of Annual General Shareholders Meeting · financial margin with clients in Chile Cost of credit...
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Annual General Shareholders Meeting
Gabriel MouraChief Executive Officer
March 18th, 2020
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Strategic initiatives
3
IndividualsNPS 1Dec-19 vs. Dec-18
15 pp
SMENPS 1Dec-19 vs. Dec-18
24 pp
CompaniesNPS 1Dec-19 vs. Dec-18
20 pp
Digital Transformation People
Strategic initiatives
Customer centricity
OrganizationalClimate (hable francamente)
9 p.p.
of 2019 employees satisfaction
Dress Code Flexibility for Employees
Go As I Am
Lideramore than 14,000 training hours in our program for leaders
Escuela Itaú+400,000 training hours for employees (regulatory and languages workshops, Creceprogram, Diploma at Universidad Católica for 60 managers, among others)
Recognized as the 9th best company in Chile in Attraction and Retention of Talent by Merco
2 Digital
Branches
DigitalApproach
Multi-Channel
First Call ResolutionExtended
Hours
AccountLoad
DigitalBranch
4,500
Jan-19 Jan-20
198
1 – Servitest – Ipsos Survey: 2 – Considers the number of current accounts opened in each month; 3 – Adjusted non-interest expenses annual growth (%) for Itaú Corpbanca in Chile and the Chilean Financial System.
Individual account holders
+ openings
- closures2018 2019
100
157
6953
Digital clients
1.0x 2.0x 2Dec-18 Dec-19
(base 100)
Evolution of Non-interest expenses 3
Efficiency
Merger
Itaú
Industry
-1,2
0,8
2,8
4,8
6,8
8,8
10,8
-1,2
0,8
2,8
4,8
6,8
8,8
10,8
12,8
2015 2016 2017 2018 2019
8.3
5.3
-0.9
6.34.6 p.p.
below sector average
4
Digital transformation
% of transactions through digital channels
Retail digital clients 1
Individuals 2
Consumer loans
Credit limits
Credit card advance
82%
85%
55%
4Q19
83%
68%
50%
4Q18
Time deposits 77%74%
-1 p.p.
+17 p.p.
+5 p.p.
+3 p.p.
90%
+1%
AD
OP
TIO
NIN
12
MO
NT
HS
78%
+17%
Small Companies 3
1 – December, 2019; 2 – IS, PB digitizable clients; 3 – Very small & small companies and Middle companies
Collaborative working model• Early and continuous delivery
• Focus on business value
Customer centricity• Priorization and solutions
based on customer needs
Branch transformation• Biometric solutions• Virtual host
Cybersecurity• Biometric behavior• Digital cyber defense
Robotic efficiency• Client onboarding• Mortgages• Operations
Analytics• AI predictive models• Geolocalization• Behavioral clusterization
Strategic focus
Mutual Funds 56%50% +6 p.p.
55
Responsible banking Translating strategy into action
1stFinancial sector
initiative
The only financial institution in Chile and Colombia to be part of the Institutional Investor’s list of 39 Latin American Midcap 'Most Honored Companies'
We believe that people have the power to transform the world, and that a bank can promote this transformation
We increased our DJSI scores in 2019 edition, ranking for the first time for the MILA Pacific Alliance Index and for the fourth consecutive year remaining part of the Chile Index
Sustainability Performance
Itaú Asset Management awarded as the 'ALAS20 Institution' for being recognized as a leader in: Responsible Investments, Corporate Governance and Sustainability Research
Responsible Investment
Commitments Achievements Main partners
In 2019 we launched our first integrated and verified Annual Report. The quality of the information delivered to the market was recognized by the Reporta Ranking who scored as 23 points higher than the 2018 surveyTransparency in
Communication
Voluntary commitment between the financial sector, the government and regulators, who have defined general principles regarding the management of risks and opportunities associated with climate change in decision-making
Climate Change
17 pointsabove sector average
ALAS20 Institution
23 pointsabove 2018 score
Top 3 Best Latin
America Executive Team
Goals
Itaú Asset Management
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About the 4th quarter of 2019
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Highlights4Q19
Recurring RoTE NPL 90+ daysLoansRecurring net income
Cost of credit Non-Interest expenses
Consolidated
Ch$17.9 bn
Chile
Ch$21.7 bn
-58.0 %
-46.0 %
Consolidated
3.4%
Chile
5.4%
108.5 %
169.0 %
11.5 %
5.5 %
Margin with clients
Consolidated
Ch$220.3 bn
Chile
Ch$161.3 bn
9.2 %
12.0 %
Commission and fees
Consolidated
Ch$50.6 bn
Chile
Ch$40.0 bn
9.1 %
10.1 %
4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19
4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19
Consolidated
2.8%
Chile
2.5%
4Q18 1Q19 2Q19 3Q19 4Q19
Consolidated
Ch$23.2 bn
4Q18
Chile
Ch$18.3 bn
1Q19 2Q19 3Q19 4Q19
2.9 %
2.5 %
36.0 29.2 52.8 40.2 21.7 9.1 7.3 13.0 9.6 5.4 1.8 1.9 1.9 1.8 2.5
157.4 140.8 146.5 144.0 161.3 40.7 39.2 41.1 36.3 40.0 50.7 36.6 41.9 40.9 110.1 113.4 111.2 112.5 110.8 116.9
16.8 16.9 17.3 17.8 18.3
4Q19 vs. 3Q194Q19 vs. 3Q194Q19 vs. 3Q19
4Q19 vs. 3Q194Q19 vs. 3Q194Q19 vs. 3Q194Q19 vs. 3Q19
-4.7 p.p.
-4.2 p.p.
0.7 p.p.
0.7 p.p.
Chile
Ch$110 bn
Consolidated
Ch$134 bnConsolidated
Ch$174.6 bn
Chile
Ch$116.9 bn
4Q19 vs. 3Q19
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About 2019
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2019
higher volume of credit in Chile (+ 8.7%) and better mix
of products
offset the decrease in weighted average spread, boosting the
financial margin with clients in Chile
Cost of credit increased in Chile
69.0%
Non-interest expenses in Chile grew below inflation
1.9% mainly driven by corporate credit events and regulatory and internal credit risk models implementation
53.0% Efficiency ratio
improved by 110 bp9
About our year
Recurring
Net
5.9%
Ch$155.0 billion
Ch$143.9 billion
Consolidated
Chile
26.1%
27.4%
3.4 p.p.Consolidated
Chile 4.1 p.p.
7.6 %
8.9 %Income
Recurring
Return onTangible
(yoy)
(yoy)
(yoy)
Equity (RoTE)
10
Macroeconomic outlook and Guidance 2019
GDP 2
Loan Growth 3
Inflation 4
Interest Rate 4
GDP 2
Loan Growth 5
Inflation 4
Interest Rate 4
3.2%
8 – 10%
2.7%
3.50%
3.3%
8 – 10%
3.4%
4.75%
1.2%
9.7%
3.0%
1.75%
3.3%
8.8%
3.8%
4.25%
Forecast 1 Actual
Loan Growth
Increase retail in Loan Mix 6
Cost of Credit Risk 7
Expenses in line with inflation 8
Results from Colombia 9
8.7%8.0% 10.0%
+25 bp
1.3%0.7% 0.8%
1.9%2.7%
1 ‒ Itaú Corpbanca initial forecast for 2019 on 03/01/2019, updated projections on 11/04/2019; 2 ‒GDP 2019 projected; 3 ‒Pro forma figures from 2016 to 2018 adjusted for the inclusion of loans from CMR, Walmart and Santander Consumer credit portfolios; 4 ‒ End of period; 5 ‒ Loan growth for the twelve-month period ended November 31, 2019; 6 –Retail loans refers to mortgage and consumer loan; 7 –Net provision for credit & counterparty risks; 8 –Adjusted Non-Interest Expenses; 9 –Managerial Net Income Attributable to Shareholders; evolution in Colombian Peso.
Dic-18
33.3% 33.5%
Dic-19
MacroeconomicGuidance
Actual Expected
Continued recovery in profitability11.2 x
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2019 Loan growth Chile 8.7 %8.0% 10.0%
Guidance: Loan growth Actual
1 – Ex Student loans portfolio
8,7%9,7%
Total Loans
9,0%10,3%
Commercial1
9,3%
11,2%
Mortgage
9,9%
5,5%
Consumer
1.8x Market
Reducing the gap
Convergence Convergence
Financial SystemItaú Corpbanca
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Commercial
67.5%
Mortgage
22.8%
Consumer9.7%
2019 Portfolio mix Chile 25 bp33.3% 33.5%
Guidance: Increase Retail in Loan Mix Realized
Portfolio Mix (%)
Retail: 32.5%
Retail: 33.6%
Market Share (2019)
7.2%
Commercial
Mortgage
Consumer
7.9%
12.0%
Total Loans
10.1%
29 bp
14 bp
21 bp
10 bp
Share 12-
months2017
Dic-18 Dic-19
2019
Commercial
66,5%
Mortgage
23,0%
Consumer
10,5%
2019 vs. 2018
Consumer growth
1.8x Market
107 bp
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Capital structure2019
CET 1
New LGB(Dec. 2024)
SIFI (est.)
CCB
AT1
Total Capital
Tier II
CET 1
Tier I9.0% -1.8%
-0.2% 7.0%
Regulatory CapitalRatio (Dec. 19)
Other Intangible Assets/ Net Deferred Taxes
Net effectof changes in RWA
Estimated Fully LoadedBIS III Capital
4.1%
13.1%
4.5%
11.5%
1.5%
1.0%
2.5%
8.0%
9.5%
2.0%3.5%
10.5%
-0.7%
Max use of Tier II
Regulatory Capital Ratio (Dec. 2019)
Tier II
Tier I
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2016 2017 2018 2019
Change of strategy for the technological integration
Alignment to new risk management framework and other policies
Balance sheet and liquidity strengthening
Acquisition of assets and liabilities of Itaú BBA Colombia
Introduction of Itaú Brand in the Colombian retail Market
Beginning of technological migration
Completion of technological integration
Initial roll out of digital initiatives
Completion of retail migration and client segmentation
Focus on increasing and sustainable results
Strengthening our culture throughout the organization
Consolidation of our value offer for retail banking
Advancing with digital agenda
Growth in SME segment
Continued and sustainable rebound in results
Footprint optimization
Itaú Corpbanca Colombia continues implementing its strategy focusing on a sustainable performance in the long term
Timeline milestones
15
branches closed in Colombia in 2019
3.33 thousandemployees
in 2019
Highlights2019
10.3 bn
0.4%
20.8 tn
30.4 tn
2019 2018
115.4 bn
4.6%
20.2 tn
27.9 tn
Net Income
RoTE
Loan Portfolio
Total Assets
(443.1)(451.5)
+11.2 x
+4.2 p.p.
-2.7%
-8.3%
1.9%3.49 3.33
3.64
Dec-18 Dec-19Dec-17
About 2019
127branches in Colombia in 2019
34 ( 21%)
Colombia
ActualGuidance: Continued recovery in profitability
11.2 x
-121,3
10,3
115,4
2017 2018 2019
In billion COP
Recurrent Net Income Evolution
In billion COPRoTE
Loans
Loan Portfolio and RoTE Evolution
In COP
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About 2020
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Macroeconomic outlook 2020
2017 2018 2019 2020 2017 2018 2019 2020
GDP 2
Loan Growth 1
Inflation 3
Interest Rate 3
1 ‒ Pro forma figures from 2017 to 2018 adjusted for the inclusion of loans from CMR, Walmart and Santander Consumer credit portfolios; 2‒GDP 2019 and 2020 projected; 3 ‒ End of period.
Source: Itaú Corpbanca’s estimates.
4,8%
10,3% 9,7% 4-6%
2,3%2,6%
3,0%3,3%
2,50% 2,75%
1,75%1,25%
1,3%
4,0%
1,2% 1,2%
6,1% 5,8%
8,9%8-10%
4,75%4,25% 4,25% 4,25%
4,1%3,2%
3,8%3,3%
1,4%2,6%
3,3% 3,1%
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Guidance2020
Expected
Loan Growth
Loan Mix 1
Cost of credit Risk 2
Adjusted Non-Interest Expenses 3
Results from Colombia 4
6.0%4.0%
Continued increasing retail in loan mix
1.2%1.0%
Continued recovery in profitability
1 –Retail loans refers to mortgage and consumer loan; 2 –Net provision for credit & counterparty risks; 3 –Net of labor agreement costs; 4 –Managerial Net Income Attributable to Shareholders.
4.5%3.5%
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Key strategic drivers2020
Client centricity
Digital transformation
People management
Growth
Colombia
Capital
Efficiency
Culture of innovation and transformation
Efficiency and improvement of user experience and customer satisfaction
Seamless integration from back-office to front-office
Expand our presence and client base in all business segments
Special focus on growing our Retail Bank
Further increase transactionality and relationship within our client base
Efficiently managing capital allocation through adequate cost of equity
Value creation and RAROC metrics and tools as a driver throughout the organization
Continuously increase the efficiency of our operations
Drill down of the full cost allocation model to product level
Continued focus and discipline in identifying cost saving opportunities throughout the institution
Strengthening our culture throughout the organization
To enhance our incentive models and our assessment tools
To consider the new dynamics of cooperative working
Segmentation model with well defined identity and value proposition
Development of products and a “service culture” focused on client satisfaction and long-term relationships
Continued and sustainable rebound in results
Resume expansion in business volumes
Advance with the implementation of retail and wholesale strategies
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Resultados
• 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 warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this material are subject to change without notice and neither Itaú Corpbanca (the “Bank”) nor any other person is under obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is subject to qualifications and assumptions, and neither the Bank nor any agent can give any representations as to the accuracy thereof. The Bank and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material
• Certain statements in this presentation may be considered forward-looking statements. Forward-looking information is often, but not always, identified by the use of words such as “anticipate,” “believe,” “expect,” “plan,” “intend,” “forecast,” “target,” “project,” “may,” “will,” “should,” “could,” “estimate,” “predict” or similar words suggesting future outcomes or language suggesting an outlook. These forward-looking statements include, but are not limited to, statements regarding expected benefits and synergies from the merger of Banco Itaú Chile with and into CorpBanca, the integration process of both banks, anticipated future financial and operating performance and results, including estimates for growth, as well as risks and benefits of changes in the laws of the countries we operate
• These statements are based on the current expectations of the Bank’s management. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, (1) problems that may arise in successfully integrating the businesses of Banco Itaú Chile and CorpBanca, which may result in the combined company not operating as effectively and efficiently as expected; (2) the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies; (3) the credit ratings of the combined company or its subsidiaries may be different from what the Bank or its controlling shareholders expect; (4) the industry may be subject to future regulatory or legislative actions that could adversely affect the Bank; and (5) the Bank may be adversely affected by other economic, business, and/or competitive factors
• Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to the Bank’s management. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved
• We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. More information on potential factors that could affect Itaú CorpBanca’s financial results is included from time to time in the “Risk Factors” section of Itaú CorpBanca’s Annual Report on Form 20-F for the fiscal year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (the “SEC”). Furthermore, any forward-looking statement contained in this presentation speaks only as of the date hereof and Itaú CorpBanca does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement
• This presentation may not be reproduced in any manner whatsoever. Any reproduction of this document in whole or in part is unauthorized. Failure to comply with this directive may result in a violation of the U.S. Securities Act of 1933, as amended, or the applicable laws of other jurisdiction
• The information contained herein should not be relied upon by any person. Furthermore, you should consult with own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material
• The Bank is an issuer in Chile of securities registered and regulated by the Financial Market Commission, or “CMF”. Shares of our common stock are traded on the Bolsa de Comercio de Santiago—Bolsa de Valores, or the Santiago Stock Exchange and the Bolsa Electrónica de Chile— Bolsa de Valores, or Electronic Stock Exchange, which we jointly refer to as the “Chilean Stock Exchanges,” under the symbol “ITAUCORP.” The Bank’s American Depositary Shares are traded on the New York Stock Exchange under the symbol “ITCB.” Accordingly, we are currently required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the CMF and provide copies of such reports and notices to the Chilean Stock Exchanges and the SEC. All such reports are available at www.cmf.cl, www.sec.gov and ir.itau.cl.
Disclaimers
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Annual General Shareholders Meeting
Gabriel MouraChief Executive Officer
March 18th, 2020