6-K 1 corpbanca6k662013.htm FORM 6-K corpbanca6k662013.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
________________________________
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of June 2013
 
(Commission File No. 001-32305)
 
________________________________
 
CORPBANCA
(Translation of registrant’s name into English)
 
________________________________
 
Rosario Norte 660
Las Condes
Santiago, Chile
(Address of registrant’s principal executive office)
 
________________________________
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F x
  Form 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1):
 
Yes o
  No x
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7):
 
Yes o
  No x
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o
  No x
 
 
 

 
 
 


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this report on Form 6-K as Exhibit 99.1 is our press release dated June 4, 2013, announcing our consolidated financial results for the first quarter ended March 31, 2013.

 
 
 
 


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
 
 
 
CORPBANCA
 
(Registrant)
   
   
 
By:
/s/ Eugenio Gigogne
 
Name:
Eugenio Gigogne
 
Title:
Chief Financial Officer
 
Date: June 10, 2013 
2

 
 
 
 

EXHIBIT INDEX

Exhibit
  
Description
99.1
  
Press release dated June 4, 2013.



 
 
 



Exhibit 99.1


CorpBanca Announces
First Quarter 2013 Financial Report

Santiago, Chile, June 4, 2013. CORPBANCA (NYSE:BCA; BCS: CORPBANCA), a Chilean financial institution offering a wide variety of corporate and retail financial products and services, today announced its financial results for the first quarter ended March 31, 2013. This report is based on unaudited consolidated financial statements prepared in accordance with Chilean generally accepted accounting principles. Solely for the convenience of the reader, U.S. dollar amounts in this report have been translated from Chilean nominal pesos at our internal exchange rate as of March 31, 2013 of Ch$471.89 per U.S. dollar. Industry data contained herein has been obtained from the information provided by the Superintendency of Banks and Financial Institutions (“SBIF”).

Financial Highlights
 
In 1Q 2013, Net Income attributable to shareholders totaled Ch$28,839 million (Ch$0.085 per share and US$0.269 per ADR), resulting in a 22.4% increase when compared to 1Q 2012 (YoY) and a 22.2% decreased when compared to 4Q 2012 (QoQ). The QoQ decline mainly reflects a lower inflation rate (measured as the variation of the UF) in the period: 0.13% in 1Q 2013 vs. 1.11% in 4Q 2012.
 
Total loans (excluding interbank and contingent loans) reached Ch$10,094 billion as of March 31, 2013, allowing CorpBanca to achieve a market share of 9.9%, an increase of 191.6bp YoY and a decrease of 21.2bp QoQ. CorpBanca continues to be the fourth largest private bank in Chile in terms of loans and deposits.
 
During 1Q 2013:
 
Net operating profit decreased by 13.5% QoQ and increase 41.4% YoY;
 
Net provisions for loan losses increase by 83.4% QoQ and 56.5% YoY; and
 
Total operating expenses decrease by 18.4% QoQ and 52.5% YoY.
Mr. Fernando Massú, CEO
 
In connection with Helm Bank acquisition, in 1Q 2013 CorpBanca raises more than US$620 million in new capital. Approximately 26% of the capital increase was successfully placed in the international market (~8x oversubscription), which resulted in new shareholders from the United States, England and Brazil.
 
CorpBanca’s CEO, Fernando Massú, indicated that “the successfull international placement together with a massive subscription of preemptive rights (99%) is a testament to the confidence our shareholders have in the bank’s achievements during the last few years and its growth plans. This is further evidenced by high-demand by local and foreign investors’ interest in becoming a part of our expansion project.”
 
The capital increase also involved the joining of strategic and long-term shareholders to CorpBanca’s ownership structure: International Finance Corporation (IFC) –member of the World Bank Group– subscribed and paid for a total amount of approximately US$225 million and Santo Domingo Group also increased its ownership in CorpBanca’s equity to 2.9%.

 
 
 
Press Release
June 4, 2013
Page  2 / 21



General Information

Market Share
Our loan portfolio (excluding loans to banks) has grown at a compounded annual growth rate in nominal terms of 26.6% between December 31, 2009 and December 31, 2012. As of March 31, 2013, according to the SBIF, we were the fourth largest private bank in Chile in terms of the overall size of our loan portfolio (9.9% market share on a consolidated basis and 8.2% market share on an unconsolidated basis only taking into account our operations in Chile).

Net Income (12 months trailing in millions of Chilean pesos)

 
Net Income for 1Q 2013 was Ch$28.8 billion.
 
The chart shows the trend in our 12 months trailing Net Income from December 31, 2006 to March 31, 2013. During that period, our Net Income for the 12 months trailing March 31, 2013 was the highest we have ever earned.


 
 
 
Press Release
June 4, 2013
Page 3 / 21





RoAE – RoAA
We have achieved an average annual return on equity (RoAE*) of 20.1% between 2009 and 2012.
 
Our three capital increases raised between 2011 and 2013 to fulfill our organic growth in Chile and our acquisition in Colombia –for a total amount of US$1,570 million approximately (+137.1%)– had impacted our RoAE since the third quarter 2011.
 
* Equity: Average equity attributable to shareholders excluding net income and accrual for mandatory dividends.
 
The increase in our corporate loans (with lower risk profiles and lower spreads than in our retail loans in 2011 and beginning of 2012);  the accrual of Banco Santander Colombia’s Net Income for half of 2012; and the lower inflation rate observed in 2012 and YTD 2013 have also impacted our RoAA.
 
The bank’s performance in 1Q 2013 was favorable considering the impact of the lower inflation in the Chilean banking system results. CorpBanca’s business diversification is being reflected in more stable revenues than peers since mid 2012.

Risk Index (Loan loss allowances / Total loans)
Consistent with one of our core strategies, CorpBanca has one of the lowest risk indexes (Loan loss allowances / Total loans) in the industry.  Specifically, as of March 31, 2013, CorpBanca had the lowest risk index in its Chilean loan portfolio (1.3%) and the second lowest on a consolidated basis (1.7%) among the top eight Chilean banks representing more than 90% of market share in terms of total loans according to the SBIF.
 
 
 
 
 
Press Release
June 4, 2013
Page 4 / 21
 
 
NPL (%)
CorpBanca´s high asset quality has been maintained after the acquisition of Banco Santander Colombia which took place in May 2012. The chart illustrates how our consolidated NPL ratio continues to be better than the industry average in Chile.
 
We believe that we have a risk management system that enables us to identify risks and resolve potential problems on a timely basis and we have made a series of investments to improve the technology we use to manage risk. We have also employed our risk management system and philosophy to identify potential acquisition targets with high asset quality.

BIS Ratio (%) – TIER I (%)
 
The increase of capital during 1Q 2013 reversed the decreasing trend in our BIS ratio during 2Q and 3Q 2012.  After the incorporation of Helm Bank’s RWA and the goodwill deduction our BIS Ratio should be well above 13.0%.

 
 
 
Press Release
June 4, 2013
Page 5 / 21



Branches – ATM – Headcount
   
Our distribution network in Chile provides integrated financial services and products to our customers through several diverse channels, including ATMs, branches, internet banking and telephone banking. As of March 31, 2013, we operated 122 branch offices in Chile, which includes 66 branches operating as CorpBanca and 56 branches operating as Banco Condell, our consumer finance division. In addition, as of March 31, 2013, we owned and operated 464 ATMs in Chile, and our customers have access to over 9,313 ATMs (including BancoEstado’s ATMs) in Chile through our agreement with Redbanc S.A., or Redbanc. We utilize a number of different sales channels including account executives, telemarketing and the internet to attract new clients. Our branch system serves as the main distribution network for our full range of products and services.
 
CorpBanca Colombia’s distribution channel also provides integrated financial services and products to its customers in Colombia through several diverse channels, including ATMs, branches, internet banking and telephone banking. As of March 31, 2013, CorpBanca Colombia operated 87 branch offices in Colombia and owned and operated 114 ATMs in Colombia, but providing its customers with access to over 12,280 ATMs through Colombia’s financial institutions. CorpBanca Colombia utilizes a number of different sales channels including account executives, telemarketing and the internet to attract new clients. CorpBanca Colombia’s branch system serves as the main distribution network for its full range of products and services.
 
As of March 31, 2013, on a consolidated basis we had a headcount of 3,664 employees in Chile, 1,608 employees in Colombia and 23 employees in the United States.


 
 
 
Press Release
June 4, 2013
Page 6 / 21
Management’s Discussion and Analysis

I) Consolidated Financial Performance Review

Our consolidated Net Income attributable to shareholders reported on our consolidated financial statement in 1Q 2013 was Ch$28,839 million, a 22.4% or Ch$5,285 increase from Ch$23,554 million in 1Q 2012 and a 22.2% or Ch$8,226 million decrease from Ch$37,065 million in 4Q 2012. CorpBanca reached these revenues in 1Q 2013 in a highly competitive scenario with a low variation in the value of the UF –0.13% in 1 Q 2013 vs 1.11% in 4Q 2012– coupled with: (i) the incorporation of Banco Santander Colombia operation in 2Q 2012; (ii) interest expenses associated to the portion of the acquisition not financed by capital; and (iii) the branding change. This was partly offset by the organic growth in Chile, with a proportion of commercial loans somewhat larger than retail loans.

The following table set forth the components of our net income for the quarters ended March 31, 2013 and 2012 and December 31, 2012:

Quarterly Consolidated Income Statements (unaudited)
 
Quarter
  
Change (%)
(Expressed in millions of Chilean pesos)
1Q13
4Q12
1Q12
  
1Q13/1Q12
1Q13/4Q12
Net interest income
82,074
87,871
58,995
  
39.1%
-6.6%
Net fee and commission income
22,577
27,763
13,226
  
70.7%
-18.7%
Treasury
13,498
21,857
11,695
  
15.4%
-38.2%
Other operating income
3,533
3,106
2,123
  
66.4%
13.7%
Net operating profit before loan losses
121,682
140,597
86,039
  
41.4%
-13.5%
Provision for loan losses (1)
(20,770)
(11,328)
(13,272)
  
56.5%
83.4%
Net operating profit
100,912
129,269
72,767
  
38.7%
-21.9%
Operating expenses
(62,112)
(76,110)
(40,738)
  
52.5%
-18.4%
Other operating expenses
(4,125)
(5,314)
(4,433)
  
-6.9%
-22.4%
Operating income
34,675
47,845
27,596
  
25.7%
-27.5%
Income from investments in other companies
592
440
17
  
3382.4%
34.5%
Income before taxes
35,267
48,285
27,613
  
27.7%
-27.0%
Income tax expense
(5,699)
(10,864)
(4,568)
  
24.8%
-47.5%
Minority interest
(729)
(356)
509
  
-
104.8%
Net income attributable to shareholders
28,839
37,065
23,554
  
22.4%
-22.2%
 
(1) Includes Provision for Contingent loans.
 
II) Unconsolidated Financial Performance Review: Chile and Colombia

In order to show the impact of the Colombian operation, the following table present the results generated in Chile as well as the one generated in Colombia. It is important to highlight the books of CorpBanca in Chile includes some expenses that are associated with the operation in Colombia in particularly the interest expense related to the portion of the acquisition which was not funded with capital, the amortization of the intangible assets due to the acquisition and some impacts in the mark-to-market to derivatives used for hedging tax expenses related to the acquisition of Banco Santander Colombia. The adjusted 1Q 2013 results presents in our opinion an unbiased result achieved in Chile:

 
1Q 2013
  
1Q 2013 Adjusted
Change (%)
(Expressed in millions of Chilean pesos)
Consolida-ted
Chile
Colombia
Adjust-ments
Chile
Colombia
1Q13/1Q12
Chile
Net interest income
82,074
51,918
30,156
3,122
55,040
27,025
6.7%
Net fee and commission income
22,577
15,504
7,073
  
15,504
7,073
17.2%
Treasury
13,498
1,679
11,819
2,633
4,312
9,186
-63.1%
Other operating income
3,533
1,533
2,000
  
1,533
2,000
27.8%
Net operating profit before loan losses
121,682
70,634
51,048
5,674
76,398
45,284
-11.2%
Provision for loan losses (1)
(20,770)
(11,361)
(9,409)
  
(11,361)
(9,409)
-14.4%
Net operating profit
100,912
59,273
41,639
5,764
65,037
35,875
-10.6%
Operating expenses
(62,112)
(39,174)
(22,938)
(2,542)
(36,632)
(25,480)
-10.1%
Other operating expenses
(4,125)
(3,334)
(791)
  
(3,334)
(791)
-24.8%
Operating income
34,675
16,765
17,910
8,306
25,071
9,604
-9.1%
Income from investments in other companies
592
-
592
-
-
592
-
Income before taxes
35,267
16,765
18,502
8,306
25,071
10,196
-9.2%
               
Efficiency Ratio
51.0%
      
49.3%
54.0%
  
 
(1) Includes Provision for Contingent loans.
 
 
Press Release
June 4, 2013
Page 7 / 21

 
In terms of Adjusted Net Income before taxes it is observed that the operation in Colombia generated Ch$10,196 million while the Chilean operation generated Ch$25,071 million, a reduction of 9.2% YoY.

These figures show not only that the operation in Colombia was profitable in 1Q 2013 but also helped to diversified and reduced volatility of the revenues of the bank. The local results were affected by the lower inflation observed in 1Q 2013 as it did to the entire industry but due to lower operating expenses and low loan loss provision expenses, the Net Income before taxes were reduced by a much lower growth rate compare to the industry.

Consolidated Net interest income

Our net interest income was Ch$82,074 million in 1Q 2013, an increase of 39.1% as compared to Ch$58,995 million for the same period in 2012 and a decrease of 6.6% QoQ due to a lower inflation rate in 1Q 2013 compared to 4Q 2012. The YoY increase in net interest income was primarily the result of the incorporation of CorpBanca Colombia’s results following the Banco Santander Colombia Acquisition which took place in May 2012.

The increase in our interest income was lower than the increase in our total interest-earning assets due to a lower variation in the UF of 1.07% vs. 0.13% in 1Q 2012 and 2013, respectively. Net interest margin (net interest income divided by average interest-earning assets) decreased by 3.5% from 2.93% to 2.83% as a result of the above mentioned factors relating to our net interest income. Nevertheless, on twelve months trailing net interest margin trend is positive increasing from 2.8% as of March, 2012 to 3.2% as of March 2013.

Consolidated Fees and income from services

 
Quarter
  
Change (%)
(Expressed in millions of Chilean pesos)
1Q13
4Q12
1Q12
  
1Q13/1Q12
1Q13/4Q12
Banking services(*)
16,535
10,431
8,283
  
99.6%
58.5%
Securities brokerage services
332
599
487
  
-31.8%
-44.6%
Mutual fund management
1,321
1,517
1,284
  
2.9%
-12.9%
Insurance brokerage
2,307
2,523
1,728
  
33.5%
-8.6%
Financial advisory services
1,540
3,539
991
  
55.4%
-56.5%
Legal advisory services
543
489
453
  
19.8%
11.0%
Net fee and commission income
22,577
19,098
13,226
  
70.7%
18.2%
             
(*) Includes consolidation adjustments.
            

Our net service fee income for 1Q 2013 was Ch$22,577 million, representing a 70.7% increase when compared to Ch$13.226 million for 1Q 2012. The increase in our net income from fees and services was primarily the result of (i) the consolidation of CorpBanca Colombia following the Banco Santander Colombia Acquisition, (ii) the increase in collections, billings and payments income, (iii) the increase in fees from letters of credit and guarantees, and (iv) the increase in income from card service fees. The increase in these fees and commissions categories is due to the organic growth generated in Chile during 2012 which resulted in a larger volume of operations.

 
 
 
Press Release
June 4, 2013
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Consolidated Trading and investment

 
Quarter
  
Change (%)
(Expressed in millions of Chilean pesos)
1Q13
4Q12
1Q12
  
1Q13/1Q12
1Q13/4Q12
Trading and investment income:
            
Trading investments
3,132
2,153
3,266
  
-4.1%
45.5%
Trading financial derivatives contracts
(3,446)
2,986
(739)
  
366.4%
-
Other
6,515
11,371
2,245
  
190.2%
-42.7%
Net income from financial operations
6,201
16,510
4,772
  
29.9%
-62.4%
             
Foreign exchange profit (loss), net
7,297
5,347
6,922
  
5.4%
36.5%
             
Net treasury position
13,498
21,857
11,694
  
15.4%
-38.2%

Net trading activities increased by Ch$1,429 million or 29.9% YoY to Ch$6,201 million for 1Q 2013 from Ch$4,772 million. Net foreign exchange gains slightly increased by Ch$375 million YoY to Ch$7,297 million in 1Q 2013 from Ch$6,922 million in 1Q 2012.  A significant number of derivatives are client-driven or used in order to either achieve economic hedge or accounting hedges.

Consolidated Provisions for loan losses (for Commercial and Retail loans) (1)

 
Quarter
  
Change (%)
(Expressed in millions of Chilean pesos)
1Q13
4Q12
1Q12
  
1Q13/1Q12
1Q13/4Q12
Commercial, net of loan loss recoveries
(11,510)
(4,366)
(8,640)
  
33.2%
163.6%
Residential mortgage, net of loan loss recoveries
(731)
2,409
(643)
  
13.7%
-
Consumer, net of loan loss recoveries
(8,372)
(10,662)
(4,862)
  
72.2%
21.5%
Others
(28)
(1)
46
  
-
-
Net provisions for loan losses
(20,641)
(12,620)
(14,099)
  
46.4%
63.6%
 
(1) Excludes provision for Contingent loans.

Provisions for loan losses increased by 46.4% YoY to Ch$20,641 million in 1Q 2013 compared to Ch$14,099 million in 1Q 2012 explained by the incorporation of CorpBanca Colombia’s loan portfolio. Regarding the operation in Chile, loan loss provision expenses were reduced YoY as a consequence of lower risk levels.

Consolidated Operating expenses

 
Quarter
  
Change (%)
(Expressed in millions of Chilean pesos)
1Q13
4Q12
1Q12
  
1Q13/1Q12
1Q13/4Q12
Personnel salaries and expenses
29,732
39,022
24,449
  
21.6%
-23.8%
Administrative expenses
24,742
30,057
14,235
  
73.8%
-17.7%
Depreciation and amortization
7,638
7,031
2,054
  
271.9%
8.6%
Impairment
-
-
-
  
-
-
Operating expenses
62,112
76,110
40,738
  
52.5%
-18.4%

Operating expenses increased by Ch$21,374 million YoY, or 52.5%, in the year ended December 31, 2012 from Ch$40,738 million in 1Q 2012. The increase in operating expenses was primarily the result of the incorporation of the results of CorpBanca Colombia following the Banco Santander Colombia Acquisition, including an increase in administration expenses by 73.8% related to our rebranding efforts in Colombia in connection with the Banco Santander Colombia Acquisition as described in more detail below and personnel salaries and expenses by 21.6%.


 
 
 
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June 4, 2013
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The increase in our personnel salaries and expenses is attributable to the expansion of our geographic footprint and an increase in the diverse financial products we offer. We also had an increase of 73.8% in administration expenses due to the one-time expenses mentioned above, including Banco Santander Colombia’s rebranding and personnel performance bonuses, and an increase in depreciation and amortization of 271.9% as a result of the amortization of the intangibles assets related to Banco Santander Colombia Acquisition.

III) Consolidated Assets and liabilities

Consolidated Loan portfolio (1)
 
As of the three months ended
  
Change (%)
(Expressed in millions of Chilean pesos)
mar-13
dic-12
mar-12
  
Mar-13/Mar-12
Mar-13/Dec-12
Wholesale lending
7,433,704
7,513,969
5,549,634
  
33.9%
-1.1%
Chile
6,322,723
6,418,447
5,549,634
  
13.9%
-1.5%
Commercial loans
5,480,390
5,564,788
4,766,144
  
15.0%
-1.5%
Foreign trade loans
436,196
424,824
388,195
  
12.4%
2.7%
Leasing and Factoring
406,137
428,835
395,295
  
2.7%
-5.3%
Colombia
1,110,981
1,095,522
-
  
-
1.4%
Commercial loans
1,110,457
1,095,441
-
  
-
1.4%
Foreign trade loans
-
-
-
  
-
-
Leasing and Factoring
524
81
-
  
-
546.9%
Retail lending
2,660,624
2,646,629
1,627,979
  
63.4%
0.5%
Chile
1,889,470
1,858,717
1,627,979
  
16.1%
1.7%
Consumer loans
480,916
476,275
425,136
  
13.1%
1.0%
Residential mortgage loans
1,408,554
1,382,442
1,202,843
  
17.1%
1.9%
Colombia
771,154
787,912
-
  
-
-2.1%
Consumer loans
616,385
633,457
-
  
-
-2.7%
Residential mortgage loans
154,769
154,455
-
  
-
0.2%
TOTAL LOANS
10,094,328
10,160,598
7,177,613
  
40.6%
-0.7%
Chile
8,212,193
8,277,164
7,177,613
  
14.4%
-0.8%
Colombia
1,882,135
1,883,434
-
  
-
-0.1%
 
(1) Contingent loans under IFRS are not considered part of the Loan portfolio.

Our total loans increased by 40.6% or Ch$2,196.7 billion YoY from Ch$7,177.6 billion to Ch$10,094.3 billion. This increase is primarily the result of the addition of CorpBanca Colombia’s loan portfolio following the Banco Santander Colombia Acquisition, which represented 65% of our total loan portfolio increase YoY.

Our wholesale lending increased 33.9% or Ch$1,884.1 billion YoY but decrease 1.1% or Ch$80.3 billion QoQ reflecting a 1.5% decrease in commercial loans in Chile where we are growing at a slower pace than in previous periods in order to enhance business relationship with our clients and improve our profitability. CorpBanca significantly increased its market share in Chile during 2012 (8.8% in 2010 and 10.2% in 1Q 2013) becoming principal bank of the upper end of large corporations.

Our retail lending increased 63.4% or Ch$1,032.6 billion YoY and increased 0.5% or Ch$14.0 billion QoQ mainly due to a 1.9% or Ch$26.0 billion increase in our residential mortgage loans in Chile QoQ that offset a 2.7% decrease in consumer loans in Colombia.

Consolidated Securities Portfolio

 
As of the three months ended
  
Change (%)
(Expressed in millions of Chilean pesos)
mar-13
dic-12
mar-12
  
Mar-13/Mar-12
Mar-13/Dec-12
Trading investments
251,527
159,898
167,880
  
49.8%
57.3%
Available-for-sale investments
892,798
1,112,435
602,554
  
48.2%
-19.7%
Held-to-maturity investments
116,439
104,977
10,741
  
984.1%
10.9%
Total Financial Investments
1,260,764
1,377,310
781,175
  
61.4%
-8.5%

 
 
 
 
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June 4, 2013
Page 10 / 21

 
 
Our investment portfolio consists of trading, available-for-sale and held-to-maturity securities. Trading instruments correspond to fixed income securities acquired to generate gains from short-term price fluctuations or brokerage margins. Trading instruments are stated at fair value.

Investment instruments are classified in two categories: held-to-maturity investments and instruments available-for-sale. We currently have a small amount of held-to-maturity investments. All other investment instruments are considered available-for-sale. Investment instruments are initially recognized at cost, which includes transaction costs. Instruments available-for-sale at each subsequent period-end are valued at their fair value according to market prices or based on valuation models. Unrealized gains or losses arising from changes in the fair value are charged or credited to equity accounts.

Our total financial investments increased by 49.8% or Ch$479.6 billion YoY. This increase is primarily the result of the addition of CorpBanca Colombia’s investment portfolio following the Banco Santander Colombia Acquisition. QoQ total financial investments decrease by 8.5% or Ch$116.5 billion reflecting the 19.7% decrease in our available-for-sale investments.

Consolidated Funding strategy

 
As of the three months ended
  
Change (%)
(Expressed in millions of Chilean pesos)
mar-13
dic-12
mar-12
  
Mar-13/Mar-12
Mar-13/Dec-12
Demand deposits
1,318,360
1,112,675
677,854
  
94.5%
18.5%
Time deposits and saving accounts
6,638,416
7,682,675
5,124,225
  
29.5%
-13.6%
Investments sold under repurchase agreements
247,066
257,721
112,775
  
119.1%
-4.1%
Mortgage finance bonds
139,416
147,688
172,469
  
-19.2%
-5.6%
Bonds
1,413,184
1,044,124
1,073,574
  
31.6%
35.3%
Subordinated bonds
752,473
694,792
423,639
  
77.6%
8.3%
Interbank  borrowings
18,658
18,120
19,181
  
-2.7%
3.0%
Foreign borrowings
924,108
969,521
714,516
  
29.3%
-4.7%

Our current funding strategy is to continue utilizing all sources of funding in accordance with their costs, their availability and our general asset and liability management strategy.

On July 29, 2010, we entered into a US$167.5 million senior unsecured syndicated term loan facility with BNP Paribas, as Administrative Agent, and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank Aktiengesellschaft, Standard Chartered Bank and Wells Fargo Securities, LLC, as lead arrangers and book-runners. The proceeds of the loan were used mainly to fund our lending activities and for general corporate purposes. On July 24, 2012, we have entered into a US$174.4 million amended and restated senior unsecured syndicated term loan facility with Standard Chartered Bank, as administrative agent, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC, as lead arrangers and book-runners, and Commerzbank Aktiengesellschaft, as lead arranger.

On August 1, 2010, we implemented a local bond program for a maximum amount of UF150 million at any time outstanding. Under the local bond program, we are able to issue two types of bonds: (i) senior bonds, up to an aggregate amount of UF100 million, which can be divided into 28 series of senior bonds (from AB to AZ and from BA to BC), with a maturity ranging from 3 to 30 years and an interest rate of 3%, and (ii) subordinated bonds, up to an aggregate amount of UF50 million, which can be divided into 16 series (from BD to BS), with a maturity ranging from 20 to 35 years and an interest rate of 4%. For all the series of bonds that could be issued under the local bond program, the amortization of capital will be made in full at maturity. The principal owed in connection with outstanding senior and subordinated bonds is due at maturity and interest relating thereto is due bi-annually. The objective of the local bond program is to structure the future issuances of debt of CorpBanca in a way that provides for diverse alternatives of placements in order to manage efficiently its outstanding indebtedness. Under the local bond program, in 2010, we issued bonds in the Chilean market in the amount of UF18.8 million (Ch$403,364). In addition, on October 29, 2012 and October 31, 2012, we issued subordinated bonds in the local

 
 
 
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June 4, 2013
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Chilean market in the aggregate amount of UF6.6 million (Ch$149,779 million). As of March 31, 2013, we have outstanding senior bonds in the aggregate amount of Ch$1,413.2billion and outstanding subordinated bonds in the aggregate amount of Ch$752.5 billion.

On November 3, 2010, we issued US$178.1 million in Reg S notes in the international market. As of March 31, 2013, the Reg S notes have been paid off.

At the end of 2011, global financial markets faced a complex scenario in terms of liquidity due to uncertainty in European economies. Liquidity was constrained and risk premiums reached yearly highs in practically all global markets, including in Chile. Despite such circumstances, as of March 31, 2013, we maintained a reserve in liquid assets (mainly consisting of securities issued by the Central Bank of Chile and Treasury Bonds of Colombia’s Government) of Ch$1,074,743 million. In addition, as of March 31, 2013, we maintained sufficient levels of cash and deposits in banks in the amount of Ch$571.9 billion to satisfy our wholesale short-term obligations in the amount of Ch$174,612.0 million.

On January 16, 2013, CorpBanca issued US$800 million aggregate principal amount of 3.125% Senior Notes. CorpBanca expects to use the net proceeds of this offering for general corporate purposes, primarily to fund lending activities.


Consolidated Shareholders’ Equity

As of March 31, 2013, we were the fourth largest private bank in Chile, based on our shareholders’ equity (excluding net income and accrual for mandatory dividends) of Ch$1,223.2 billion and loans of Ch$10,094.3 billion. After a capital of 47,000,000,000 common shares during the quarter, we had 340,358,194.2 thousand shares outstanding and a market capitalization of Ch$2,204.5 billion (based on a share price of Ch$6.477 pesos per share) as of March 31, 2013.

On January 18, 2013, we raised capital in the aggregate amount of Ch$66,751.2 million through the issuance of 10,680,200,621 common shares, including common shares in the form of ADSs, in the United States and elsewhere outside of Chile (ii) on February 7, 2013, we raised capital in the aggregate amount of Ch$106,361.9 million in connection with the investment by certain investment funds of the International Finance Corporation, or IFC, a member of the World Bank Group, and IFC Asset Management Company to acquire a 5% equity interest in CorpBanca, or the IFC Investment, pursuant to an investment agreement with CorpGroup, Compañía Inmobiliaria y de Inversiones Saga Ltda., and CorpGroup Inversiones Bancarias Ltda., and (iii) on February 14, 2013, we raised capital in the aggregate amount of Ch$120,927.7 million during a preemptive rights offering under Chilean law in connection with the authorization by the Board of Directors on November 27, 2012 to issue 47,000,000,000 common shares.


IV) Other Related Information

CorpBanca to become a major player in the Colombian banking industry:
CorpBanca announces an agreement to acquire Helm Bank, positioning itself as the 5th largest bank in Colombia

On October 11, 2012, CorpBanca announced the entry into an agreement by and among Corp Group Holding Inversiones Limitada, or the HB Purchaser, and affiliates of Helm Corporation to acquire a 100% equity interest in Helm Bank S.A. through a merger with Banco CorpBanca Colombia S.A. as the surviving corporation. The aforementioned acquisition is herein referred to as the Helm Bank Acquisition. The total purchase price of the Helm Bank Acquisition is US$1.278 billion plus interest accruing on such amount at the rate of 0.5% per month from January 1, 2013, until the purchase price is paid. Subject to the terms and conditions set forth in the HB Purchase Agreement, at the closing date of the Helm Bank Acquisition, the HB Purchaser shall assign all of its rights and obligations under the HB Purchase Agreement to CorpBanca Colombia, which ultimately will acquire Helm

 
 
 
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June 4, 2013
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Bank. Within ninety days after the closing of the Helm Bank Acquisition, CorpBanca Colombia is obligated to commence a tender offer (oferta pública de adquisición) to acquire all of the preferred stock of Helm Bank from the current holders of such preferred stock pursuant to Colombian law.

In addition, CorpBanca intends to acquire an 80% equity interest in Helm Corredor de Seguros S.A., an insurance broker, for US$17.12 million.  The Helm Bank Acquisition and the acquisition of Helm Insurance are subject to customary closing conditions, including regulatory approval in Chile, Colombia, Panama and the Cayman Islands. CorpBanca’s management expects that the purchases will be completed next month. Upon completion of the acquisitions, CorpBanca will consolidate the operations of Helm Bank with and into CorpBanca Colombia, thereby reaffirming its long-term commitment to the Colombian market.

In order to finance the Helm Bank Acquisition, CorpBanca Colombia plans to raise capital in an amount not to exceed US$1 billion and finance the remainder of the acquisitions with its own funds. The planned capital increase will be subscribed by (i) CorpBanca for approximately US$365 million, (ii) Helm Corporation for approximately US$440 million, and (iii) Corpgroup Interhold Limitada for approximately US$180 million. CorpBanca will have a controlling interest in the merged bank with an approximate 67% equity interest and Helm Corporation will retain an approximate 20% equity interest.

In order to finance this additional investment in Colombia as well to finance CorpBanca’s medium-term organic growth in Chile, between January and February, 2013 we raised capital in the aggregate amount of Ch$294,040.8 million.

CorpBanca Colombia provides a broad range of commercial and retail banking services to its customers, operating principally in the cities of Bogotá, Medellín, Cali, Bucaramanga and Barranquilla. As of March 31, 2013, according to the Colombian Superintendency of Finance, CorpBanca Colombia was the 12th largest bank in Colombia in terms of total assets, the 10th largest bank in Colombia in terms of total loans and the 12th largest bank in Colombia, in terms of total deposits reported under local regulatory and accounting principles. As of March 31, 2013, CorpBanca Colombia had deposits and financial claims (“current accounts and demand deposits” and “time deposits and savings accounts”) of COP$6,000,293 million, which consisted of savings deposits, fixed-term deposit certificates, current accounts, financial claims for banking services and other commitments. As of March 31, 2013, CorpBanca Colombia had 114 ATMs and 269,522 individual banking customers and 29,247 commercial banking customers (including SMEs, corporations, institutions and wholesale customers). In 1Q 2013, CorpBanca Colombia’s Net Income totaled COP$56,708 million, compared to COP$42,907 million in 4Q 2013. As of March 31, 2013, CorpBanca Colombia had (i) total assets of COP$9,648,779 million, including total loans of COP$7,077,031 million; (ii) total shareholders’ equity of COP$1.006.653 million; and (iii) 87 branches and offices and 1,608 employees.

As of March 31, 2013, Helm Bank was the 7th largest bank in Colombia in terms of total assets and total deposits.  As of March 31, 2012, Helm Bank had total assets of US$6,427 billion, loans of US$4,675 billion, total deposits of US$4,522 billion and a net equity of US$805 million. With more than 205,000 customers and 89 branches, Helm Bank specializes in the corporate segment, medium enterprises and personal accounts with middle to high income. In the last five years, Helm Bank has continuously received high customer satisfaction ratings.

The merger will create the 5th largest bank in Colombia in terms of total assets and loans with a significant presence in segments such as corporate clients and high and medium income individuals.  The combined bank will become a larger-scale player across all product lines, with a balanced mix of businesses focused on commercial and retail operations.  As of March 31, 2013, Banco CorpBanca Colombia and Helm Bank together had more than US$11.600 billion in assets, US$8,400 billion in loans and approximately US$7.800 billion in total deposits, which represented 6.8% market share in loans and 6.2% market share in total deposits.  In addition, according to pro forma figures, the merged bank has healthy credit quality and a Return on Average Equity (RoAE) of approximately 15.5% for the 12 months trailing March 31, 2013.

 
 
 
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Customers of both entities will be able to take advantage of a larger number of products given the different strengths of both banks. The integration of Banco CorpBanca Colombia’s and Helm Bank’s central systems will also reduce costs.  CorpBanca estimates that the merger will result in cost savings around US$100 million per year after taxes.  CorpBanca believes that the merger will be an important source of value creation via optimization of costs/expenses and income through net interest margin, generating attractive returns for shareholders after the merger costs are absorbed.

The merged bank will have an expected total pro forma solvency indicator of 17.0% by the end of the first half 2013, which is higher than each of both banks has on an individual basis under current Colombian regulation.  Meanwhile, CorpBanca estimates that it will continue to have adequate levels of capitalization in order to finance its growth in the near to medium term. CorpBanca estimates that its pro forma BIS Ratio will be in the range of 12.5% to 13.0% by the end of 2013.


 
CorpBanca Colombia(1)
  
Helm Bank(1)
  
Merged Bank
Pro forma
(Expressed in millions of US$)(2)
Mar.2013(3)
MkSh | Ranking
  
Mar.2013(3)
MkSh | Ranking
  
Mar.2013(3)
MkSh | Ranking
Total Assets
5,266
2.8%
12°
  
6,427
3.4%
10°
  
11,693
6.1%
5°
Total Loans
3,731
3.0%
10°
  
4,675
3.8%
8°
  
8,406
6.8%
5°
Total Deposits
3,275
2.6%
13°
  
4,522
3.6%
10°
  
7,797
6.2%
6°
Equity
549
  
14°
  
805
  
9°
  
1,354
    
Net Income (LTM)
*98.0
  
11°
  
95.5
  
13°
  
*193.5
    
                       
RoAA (LTM)
*2.0%
  
13°
  
1.5%
  
17°
  
*1.7%
    
RoAE (LTM)
*19.6%
  
5°
  
12.8%
  
16°
  
*15.5%
    
Efficiency Ratio (LTM)
*53.1%
  
10°
  
51.4%
  
8°
  
*52.2%
    
                       
NPL
2.1%
  
4°
  
2.8%
  
7°
  
2.5%
    
BIS Ratio**
13.5%
  
12°
  
11.1%
  
20°
  
12.2%
    
Branches
87
n.a.
    
89
n.a.
    
176
n.a.
  
Headcount
1,608
n.a.
    
2,159
n.a.
    
3,767
n.a.
  
                       
 
(1)  
Unconsolidated financial statements (unaudited). Source: Banco CorpBanca Colombia S.A., Helm Bank S.A. and the Colombian Superintendency of Finance.
(2)  
U.S. dollar amounts have been translated from Colombian pesos at an exchange rate of Col$1,832.20 per U.S. dollar as of March 31, 2013.
(3)  
Annualized ratios where appropriate.
*
Excludes 2012’s Rebranding costs.
**
Includes Market Risk.


V) Ownership structure and share performance

Ownership structure

As of March 31, 2013, CorpBanca was controlled by Corp Group Banking S.A. and other companies related to Mr. Alvaro Saieh and his family:

Stock Holder
% of Total Share Capital
Corp Group Banking S.A.
45.0568%
Cía. Inmob. y de Inversiones Saga S.A.
5.4934%
Cía. de Seguros CorpVida S.A.
2.0960%
Cía. de Seguros CorpSeguros S.A.
0.8092%
Other investment companies
0.0012%
Total Saieh Group
53.4567%

 
 
 
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June 4, 2013
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IFC
5.0000%
   
Sierra Nevada Investment Chile Dos Ltda. (Santo Domingo Group)
2.8843%
   
Others
38.6590%
ADRs holders and Foreign investors
12.0191%
AFPs (Administradoras de Fondos de Pensiones)
7.5141%
Securities Brokerage
6.0672%
Other minority shareholders
13.0586%
   
Total
100.0000%
   
   
 
ADR price evolution and local share price evolution


 
ADR Price
03/28/2013
US$20.91
Maximum (LTM)
US$22.19
Minimum (LTM)
US$17.11
   
 


 
 
 
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June 4, 2013
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Local Share Price
03/28/2013
Ch$6.477
Maximum (LTM)
Ch$6.98
Minimum (LTM)
Ch$5.50
   







Market capitalization
US$4,671 million
P/E (LTM)
17.58
P/BV (03/28/2013)
3.59
Dividend yield*
2.5%
   
 
 
* Based on closing price on the day the dividend payment was announced.

Dividends

The following table shows dividends per share distributed during the past five years:

Charged to Fiscal Year
Year paid
Net Income (Ch$mn)
% Distributed
Distributed Income (Ch$mn)
Pesos per Share
(Ch$ of each year)
2008
2009
56,310
100%
56,310
0.254525860
2009
2010
85,109
100%
85,109
0.375082130
2010
2011
119,043
100%
119,043
0.524628030
2011
2012
122,849
100%
122,849
0.490694036
2012
2013
120,080
50%
60,040
0.176402388
           


 
 
 
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June 4, 2013
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VI) Credit risk ratings

International credit risk ratings

On a global scale, the bank is rated by two world-wide recognized agencies: Moody´s Investors Service and Standard & Poor´s Ratings Services (S&P).

On October 11, 2012, Moody´s Investors Service changed the outlook on the ratings of CorpBanca to 'Negative' from 'Stable' following CorpBanca´s announcement to acquire Helm Bank S.A. (Colombia). The 'Negative' outlook was placed on CorpBanca’s 'D+' standalone bank financial strength rating (BFSR) and 'baa3' baseline credit assessment (BCA) and the bank’s 'Baa1' long term local and foreign currency deposit ratings. The bank´s 'Prime-2' short term local and foreign currency deposit were unaffected by this action.

The 'Negative' outlook reflects the potential for negative pressure on the bank’s financial fundamentals as a result of its second large cross border bank acquisition in less than 12 months. The acquisition of Helm represents a doubling of the bank’s exposure in the Colombian market within a very short time frame. The 'Negative' outlook also encompasses the risk of greater than expected integration and credit costs, as well as the costs of acquiring and merging the two banks in Colombia, away from CorpBanca´s traditional Chilean footprint.

Moody’s said that CorpBanca’s acquisition of Helm makes strategic sense as it is designed to consolidate the bank’s position in Colombia’s growing economy and financial system with a critical mass of market share (around 7%). This enhanced market share together with Helm Bank’s portfolio and customer base of large corporations will bolster CorpBanca´s ability to compete with the large Colombian banks that dominate the domestic banking industry.

Moody´s
Rating
Long-term foreign currency deposits
Baa1
Short-term fforeign currency deposits
Prime-2
Bank financial strength
D+
Outlook
Negative
   


On October 9, 2012, Standard & Poor´s Ratings Services placed its 'BBB+' ratings on CorpBanca on 'CreditWatch with negative implications' on agreement to buy Helm Bank, reflecting the potential impact of the increased exposure to Colombia. S&P will evaluate the acquisition's impact on CorpBanca's anchor stand-alone credit profile, capital charges, risk adjusted capital ratios, and the resulting capital structure. S&P intend to resolve the CreditWatch listings after completion of regulatory approvals in Chile and Colombia.

Standard & Poor´s
Rating
Long-term issuer credit rating
BBB+
Short-term issuer credit rating
A-2
CreditWatch
Negative
   


Local Credit risk ratings

On a national scale, the bank is rated by Feller Rate –a Strategic Affiliate of Standard & Poor´s–, by International Credit Rating Chile (ICR) and by Humphreys.

On October 11, 2012, Feller Rate changed the 'CreditWatch with developing implications' placing the 'AA' ratings of CorpBanca on 'CreditWatch Negative'. At the same time, preliminary maintained the 'Primera Clase Nivel 1' rating on its shares. The change in the implications of CreditWatch to 'Negative' from 'Developing' considered the bank’s announcement to acquire Helm Bank S.A. in Colombia through its Colombian subsidiary, Banco CorpBanca Colombia S.A. To resolve the CreditWatch listings, Feller Rate will consider more detailed financial and business profiles of the consolidated entity, as well as the expected capital adequacy ratios for the forecoming periods.
 
 
 
 
 
 
 
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June 4, 2013
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Feller Rate
Rating
Long-term issuer credit rating
AA
Senior unsecured bonds
AA
Subordinated bonds
AA-
Short-term issuer credit rating
Nivel 1+
Shares
1ª Clase Nivel 1
CreditWatch
Negative
   


On October 12, 2012, ICR changed the outlook on the ratings of CorpBanca to 'En Observación' from 'Stable' following CorpBanca´s announcement to acquire Helm Bank S.A. (Colombia). The change in the outlook reflects that once the required funding is raised and the merger between CorpBanca Colombia and Helm Bank is materialized, there is uncertainty that CorpBanca achieves enough regulatory equity to fulfill BIS Ratio and leverage level required to mitigate the risk of incorporate a large amount of assets from a country with a risk level greater than Chilean. The foregoing is without prejudice that the bank meets the minimum regulatory levels.

ICR
Rating
Long-term issuer credit rating
AA
Senior unsecured bonds
AA
Subordinated bonds
AA-
Short-term issuer credit rating
Nivel 1+
Shares
1ª Clase Nivel 1
Outlook
En Observación
   


In October 2012, Humphreys rated in 'AA-' long term deposit and senior unsecured debt, in 'Nivel 1+' short term deposit and in 'A+' long term subordinated debt. The ratings’ Outlook was placed in 'En Observación' reflecting CorpBanca´s announcement to acquire Helm Bank S.A. (Colombia).

 
Humphreys
Rating
Long-term issuer credit rating
AA-
Senior unsecured bonds
AA-
Subordinated bonds
A+
Short-term issuer credit rating
Nivel 1+
Shares
1ª Clase Nivel 1
Outlook
En Observación
   


 
 
 
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June 4, 2013
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VII) Quarterly Consolidated Income Statements (unaudited)

 
For the three months ended
  
Change (%)
 
Mar-13
  
Mar-13
Dec-12
Mar-12
  
Mar-13/Mar-12
Mar-13/Dec-12
 
US$ths
  
Ch$mn
      
                 
Interest income
444,101
  
209,256
251,874
161,986
  
29.2%
-16.9%
Interest expense
(269,917)
  
(127,182)
(164,003)
(102,991)
  
23.5%
-22.5%
Net interest income
174,185
  
82,074
87,871
58,995
  
39.1%
-6.6%
                 
Fee and commission income
59,632
  
28,098
34,288
16,547
  
69.8%
-18.1%
Fee and commission expense
(11,717)
  
(5,521)
(6,525)
(3,321)
  
66.2%
-15.4%
Net fee and commission income
47,915
  
22,577
27,763
13,226
  
70.7%
-18.7%
                 
Net income from financial operations
13,160
  
6,201
16,510
4,772
  
29.9%
-62.4%
Foreign exchange profit (loss), net
15,486
  
7,297
5,347
6,923
  
5.4%
36.5%
Total financial transactions, net
28,647
  
13,498
21,857
11,695
  
15.4%
-38.2%
Other operating income
7,498
  
3,533
3,106
2,123
  
66.4%
13.7%
Net operating profit before loan losses
258,244
  
121,682
140,597
86,039
  
41.4%
-13.5%
                 
Provision for loan losses (1)
(44,080)
  
(20,770)
(11,328)
(13,272)
  
56.5%
83.4%
                 
Net operating profit
214,164
  
100,912
129,269
72,767
  
38.7%
-21.9%
                 
Personnel salaries and expenses
(63,100)
  
(29,732)
(39,022)
(24,449)
  
21.6%
-23.8%
Administrative expenses
(52,510)
  
(24,742)
(30,057)
(14,235)
  
73.8%
-17.7%
Depreciation and amortization
(16,210)
  
(7,638)
(7,031)
(2,054)
  
271.9%
8.6%
Impairment
-
  
-
-
-
  
-
-
Operating expenses
(131,819)
  
(62,112)
(76,110)
(40,738)
  
52.5%
-18.4%
Other operating expenses
(8,754)
  
(4,125)
(5,314)
(4,433)
  
-6.9%
-22.4%
Total operating expenses
(140,574)
  
(66,237)
(81,424)
(45,171)
  
46.6%
-18.7%
Operating income
73,590
  
34,675
47,845
27,596
  
25.7%
-27.5%
                 
Income from investments in other companies
1,256
  
592
440
17
  
3382.4%
34.5%
Income before taxes
74,847
  
35,267
48,285
27,613
  
27.7%
-27.0%
                 
Income tax expense
(12,095)
  
(5,699)
(10,864)
(4,568)
  
24.8%
-47.5%
                 
Net income from ordinary activities
62,752
  
29,568
37,421
23,045
  
28.3%
-21.0%
                 
Net income from discontinued operations
-
  
-
-
-
  
-
-
                 
Net income attributable to:
                
Minority interest
(1,547)
  
(729)
(356)
509
  
-
104.8%
Net income attributable to shareholders
61,205
  
28,839
37,065
23,554
  
22.4%
-22.2%
                 
 
(1) Includes Provision for Contingent loans and net of loan loss recoveries.

 
 
 
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June 4, 2013
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VIII) Consolidated Balance Sheet (unaudited)

 
As of the three months ended
  
Change (%)
 
Mar-13
  
Mar-13
Dec-12
Mar-12
  
Mar-13/Mar-12
Mar-13/Dec-12
 
US$ths
  
Ch$mn
      
Assets
                
Cash and deposits in banks
1,213,629
  
571,850
520,228
531,718
  
7.5%
9.9%
Unsettled transactions
443,051
  
208,761
123,777
255,465
  
-18.3%
68.7%
Trading investments
533,812
  
251,527
159,898
167,880
  
49.8%
57.3%
Available-for-sale investments
1,894,773
  
892,798
1,112,435
602,554
  
48.2%
-19.7%
Held-to-maturity investments
247,117
  
116,439
104,977
10,741
  
984.1%
10.9%
Investments under resale agreements
403,209
  
189,988
21,313
17,330
  
996.3%
791.4%
Financial derivatives contracts
532,513
  
250,915
268,027
242,468
  
3.5%
-6.4%
Interbank loans, net
507,625
  
239,188
482,371
304,157
  
-21.4%
-50.4%
Loans and accounts receivable from customers
21,423,050
  
10,094,327
10,160,597
7,177,612
  
40.6%
-0.7%
Loan loss allowances
(361,555)
  
(170,361)
(166,707)
(108,738)
  
56.7%
2.2%
Loans and accounts receivable from customers, net of loan loss allowances
21,061,497
  
9,923,967
9,993,891
7,068,875
  
40.4%
-0.7%
Investments in other companies
12,341
  
5,815
5,793
3,583
  
62.3%
0.4%
Intangible assets
970,855
  
457,457
481,682
11,823
  
3769.2%
-5.0%
Property, plant and equipment
133,343
  
62,830
65,086
56,194
  
11.8%
-3.5%
Current  taxes
-
  
-
-
10,682
  
-100.0%
-
Deferred taxes
85,295
  
40,190
40,197
29,756
  
35.1%
0.0%
Other assets
272,313
  
128,311
148,549
130,922
  
-2.0%
-13.6%
Total Assets
28,311,371
  
13,340,035
13,528,223
9,444,147
  
41.3%
-1.4%
                 
Liabilities
                
Deposits and other demand liabilities
2,797,937
  
1,318,360
1,112,675
677,854
  
94.5%
18.5%
Unsettled transactions
365,515
  
172,227
68,883
223,674
  
-23.0%
150.0%
Investments sold under repurchase agreements
524,345
  
247,066
257,721
112,775
  
119.1%
-4.1%
Time deposits and other time liabilities
14,088,618
  
6,638,416
7,682,675
5,124,225
  
29.5%
-13.6%
Financial derivatives contracts
391,876
  
184,648
193,844
156,826
  
17.7%
-4.7%
Interbank borrowings
1,964,511
  
925,658
969,521
714,516
  
29.6%
-4.5%
Issued debt instruments
4,892,024
  
2,305,073
1,886,604
1,669,682
  
38.1%
22.2%
Other financial liabilities
36,308
  
17,108
18,120
19,181
  
-10.8%
-5.6%
Current taxes
19,705
  
9,285
9,057
108
  
8497.2%
2.5%
Deferred taxes
227,808
  
107,341
117,753
26,041
  
312.2%
-8.8%
Provisions
165,659
  
78,057
139,850
24,299
  
221.2%
-44.2%
Other liabilities
131,611
  
62,014
75,205
36,008
  
72.2%
-17.5%
Total Liabilities
25,605,919
  
12,065,253
12,531,908
8,785,189
  
37.3%
-3.7%
Equity
                
Capital
1,658,692
  
781,559
638,234
507,108
  
54.1%
22.5%
Reserves
901,394
  
424,728
275,552
139,140
  
205.3%
54.1%
Valuation adjustment
(122,138)
  
(57,550)
(31,881)
(8,308)
  
592.7%
80.5%
Retained Earnings:
                
Retained earnings or prior periods
127,422
  
60,040
-
-
  
-
-
Income for the period
61,205
  
28,839
120,080
23,554
  
22.4%
-76.0%
Minus: Provision for mandatory dividend
(30,603)
  
(14,420)
(60,040)
(7,066)
  
104.1%
-76.0%
Attributable to bank shareholders
2,595,972
  
1,223,196
941,945
654,428
  
86.9%
29.9%
Non-controlling interest
109,480
  
51,586
54,370
4,530
  
1038.8%
-5.1%
Total Equity
2,705,452
  
1,274,782
996,315
658,958
  
93.5%
27.9%
Total equity and liabilities
28,311,371
  
13,340,035
13,528,223
9,444,147
  
41.3%
-1.4%
                 


 
 
 
Press Release
June 4, 2013
Page 20 / 21




IX) Quarterly Consolidated Evolution Selected Performance Ratios (unaudited)

 
As of and for the three months ended
 
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
           
Capitalization
          
TIER I (Core capital) Ratio(4)
8.14%
8.02%
8.01%
8.19%
10.63%
BIS Ratio(4)
12.41%
10.83%
10.80%
11.05%
14.76%
Shareholders' equity / Total assets
6.98%
7.40%
7.44%
7.36%
9.56%
Shareholders' equity / Total liabilities
7.50%
8.00%
8.03%
7.95%
10.57%
           
Asset quality
          
Risk Index (Loan loss allowances / Total loans )
1.51%
1.69%
1.69%
1.64%
1.69%
Prov. for loan losses / Avg. total loans(1)
0.76%
0.41%
0.73%
0.46%
0.82%
Prov. for loan losses / Avg. total assets(1)
0.58%
0.30%
0.54%
0.34%
0.62%
Prov. for loan losses / Net operating profit before loans losses
15.4%
8.9%
14.4%
8.1%
17.1%
Prov. for loan losses / Net income
57.6%
30.9%
55.5%
30.3%
70.2%
PDL / Total loans(5)
0.66%
0.62%
0.63%
0.54%
0.48%
Coverage PDL´s
230.5%
271.4%
270.3%
305.2%
350.7%
NPL / Total loans(6)
1.56%
1.43%
1.50%
1.30%
1.24%
Coverage NPL´s
100.4%
150.7%
142.7%
161.0%
173.4%
           
Profitability
          
Net interest income / Avg. interest-earning assets(1)(2) (NIM)
2.93%
2.12%
2.11%
3.07%
2.83%
Net operating profit before loan losses / Avg. total assets(1)
3.75%
3.41%
3.75%
4.25%
3.62%
Net operating profit before loan losses / Avg. interest-earning assets(1)(2)
4.28%
4.01%
4.41%
4.92%
4.20%
RoAA (before taxes), over Avg. total assets(1)
1.21%
1.23%
0.98%
1.46%
1.05%
RoAA (before taxes), over Avg. interest-earning assets(1)(2)
1.37%
1.45%
1.15%
1.69%
1.22%
RoAE (before taxes)(1)(3)
18.4%
18.3%
14.7%
23.3%
13.8%
RoAA, over Avg. total assets(1)
1.01%
0.98%
0.97%
1.13%
0.88%
RoAA, over Avg. interest-earning assets(1)(2)
1.15%
1.15%
1.14%
1.31%
1.02%
RoAE(1)(3)
14.66%
14.06%
13.33%
15.95%
10.50%
           
Efficiency
          
Operating expenses / Avg. total assets(1)
1.78%
1.71%
1.89%
2.30%
1.85%
Operating expenses/ Avg. total loans(1)
2.33%
2.31%
2.56%
3.06%
2.45%
Operating expenses / Operating revenues
47.3%
50.2%
50.4%
54.1%
51.0%
           
Market information (period-end)
          
Diluted Earnings per share before taxes (Ch$ per share)
          0.1103
          0.1195
          0.1092
          0.1646
          0.1036
Diluted Earnings per ADR before taxes (US$ per ADR)
          0.3384
          0.3578
          0.3457
          0.5153
          0.3294
Diluted Earnings per share (Ch$ per share)
0.0941
0.0959
0.1068
0.1263
0.0847
Diluted Earnings per ADR (US$ per ADR)
0.2886
0.2871
0.3380
0.3955
0.2693
Total Shares Outstanding (Thousands)(4)
250,358,194.2
293,358,194.2
293,358,194.2
293,358,194.2
340,358,194.2
Peso exchange rate for US$1.0
488.93
501.07
473.94
479.16
471.89
Quarterly UF variation
1.07%
0.42%
-0.16%
1.11%
0.13%
           
 
(1) Annualized figures when appropriate.
(2) Interest-earning assets: Total loans and financial investments.
(3) Equity: Average equity attributable to shareholders excluding net income and accrual for mandatory dividends.
(4) During the second and first quarters 2012 and 21013, respectively, the bank increased its capital base.
(5) PDL: Past due loans; all installments that are more than 90 days overdue.
(6) NPL: Non-performing loans; full balance of loans with one installment 90 days or more overdue.

 
 
 
Press Release
June 4, 2013
Page 21 / 21






CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains 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. Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to CorpBanca concerning anticipated financial performance, business prospects, strategies and regulatory developments. 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 CorpBanca’s financial results is included from time to time in the “Risk Factors” section of CorpBanca’s Annual Report on Form 20-F for the fiscal year ended December 31, 2012, filed with the SEC. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and 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 press release are expressly qualified by this cautionary statement.

CONTACT INFORMATION:

Eugenio Gigogne
CFO, CorpBanca
Santiago, Chile
Phone: (562) 2660-2555
investorrelations@corpbanca.cl

Claudia Labbé
Manager Investor Relations, CorpBanca
Santiago, Chile
Phone: (562) 2660-2699
claudia.labbe@corpbanca.cl

Nicolas Bornozis
President, Capital Link
New York, USA
Phone: (212) 661-7566
nbornozis@capitallink.com