-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LUrh9DHYxpvfa0/IY+u3qNIqwPVUaIX1/IvuQ+gGByHCR970ArMnjpSfiKD2NmMh 18qSpmTd7eins9X7iyvK1A== 0000950127-06-000687.txt : 20061122 0000950127-06-000687.hdr.sgml : 20061122 20061122134229 ACCESSION NUMBER: 0000950127-06-000687 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061117 FILED AS OF DATE: 20061122 DATE AS OF CHANGE: 20061122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORPBANCA/FI CENTRAL INDEX KEY: 0001276671 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 000000000 STATE OF INCORPORATION: F3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32305 FILM NUMBER: 061235688 BUSINESS ADDRESS: STREET 1: HUERFANOS 1072 CITY: SANTIAGO CHILE STATE: F3 ZIP: 00000 BUSINESS PHONE: 56 (2) 687-8000 MAIL ADDRESS: STREET 1: HUERFANOS 1072 CITY: SANTIAGO CHILE STATE: F3 ZIP: 00000 6-K 1 form6k.txt FORM 6-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: November 22, 2006 Commission File Number: 001-32305 CORPBANCA ----------------------------------------------- (Translation of registrant's name into English) Huerfanos 1072, Santiago, Chile --------------------------------------- (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ] 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 [ ] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________. ================================================================================ On November 13, 2006, CORPBANCA announced its financial results for the third quarter of 2006. A copy of the press release is attached hereto as Exhibit 99.1. 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, thereunto duly authorized. Date: November 20, 2006 CORPBANCA By: /s/ Enrique Perez -------------------------- Name: Enrique Perez Title: Chief Financial Officer EXHIBIT INDEX Exhibit Description - ------- ---------------------------------------------------------------- 99.1 CORPBANCA press release, dated November 13, 2006, announcing its financial results for the third quarter of 2006. EXHIBIT 99.1 [GRAPHIC OMITTED] CORP BANCA CORP BANCA: THIRD QUARTER 2006 RESULTS Santiago, Chile, November 13, 2006 - CORP BANCA (NYSE: BCA), a Chilean financial institution offering a wide variety of corporate and retail financial products and services, today announced its financial results for the third quarter of 2006. This report is based on unaudited consolidated financial statements prepared in accordance with Chilean generally accepted accounting principles. Figures are expressed in Chilean pesos as of September 30, 2006 and percentages are expressed in real terms. Solely for the convenience of the reader, U.S. dollar amounts in this report have been translated from Chilean pesos at the rate of Ch$538.22 per U.S. dollar, the Central Bank of Chile's observed exchange rate as of September 30, 2006. CONSOLIDATED RESULTS FOR CORP BANCA FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 2006 o ANALYSIS OF RESULTS CORP BANCA recorded net income of Ch$29,338 million for the nine-month period which ended on September 30, 2006. This represents a 29.0% decrease compared to the same period in 2005. The decrease was mainly due to a Ch$13,877 million decline in gross margin and a Ch$2,799 million increase in operating expenses, both of which were partially offset by a Ch$1,569 million decrease in provisions for loan losses. The following table shows comparative information relating to the composition of our consolidated net income for the nine-month period ended on September 30, 2006 as compared to the same period in 2005, in millions of Chilean pesos (except percentages):
PERCENTAGE NINE MONTHS NINE MONTHS CHANGE CHANGE ENDED ENDED BETWEEN BETWEEN SEPTEMBER 30, SEPTEMBER 30, 2005 AND 2006 2005 AND 2006 2005 2006 PERIODS PERIODS - ------------------------------------- --------------- --------------- --------------- --------------- Gross margin 114,848 100,971 (13,877) (12.1%) Operating expenses (45,091) (47,890) (2,799) 6.2% Provisions for loan losses (11,513) (9,944) 1,569 (13.6%) Income attributable to investments in other companies 164 479 315 192.9% Other non-operating expenses (845) (482) 363 (42.9%) Net loss from price-level restatement (7,179) (8,243) (1,064) 14.8% Net income before taxes 50,384 34,890 (15,494) (30.8%) Income tax provisions (9,045) (5,552) 3,493 (38.6%) Net income 41,339 29,338 (12,001) (29.00%)
Gross Margin. The following table shows comparative information relating to the composition of CORP BANCA's gross margin for the nine-month period ended September 30, 2006 as compared to the same period in 2005 in millions of Chilean pesos (except percentages):
PERCENTAGE NINE MONTHS NINE MONTHS CHANGE CHANGE ENDED ENDED BETWEEN BETWEEN SEPTEMBER 30, SEPTEMBER 30, 2005 AND 2006 2005 AND 2006 2005 2006 PERIODS PERIODS - ------------------------------------- --------------- --------------- --------------- --------------- Net interest revenue 87,377 83,663 (3,713) (4.2%) Fees and income from services, net 16,319 20,245 3,926 24.1% Gains from trading activities, net 14,086 4,213 (9,873) (70.1%) Foreign exchange transactions, net 580 1,381 802 138.2% Other operating income, net (3,514) (8,532) (5,018) 142.8% Gross margin 114,848 100,971 (13,877) (12.1%) Net interest revenue, as adjusted (*) 85,195 82,575 (2,620) (3.1%) Foreign Exchange rate earnings, as adjusted (*) 2,762 2,470 (292) (10.6%)
(*) Includes exchange rate earnings derived from forward contracts held by Corp Banca for hedging purposes www.corpbanca.cl Huerfanos 1072, Santiago, Chile 1 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA Our gross margin decreased by Ch$13,877 million, or 12.1%, in the nine-month period ended September 30, 2006 as compared to the same period in 2005. This decrease mainly reflects the Ch$9,873 million, or 70.1%, decrease in gains from net trading activities. In prior periods, net gains from trading activities, which reflect the results of trading in our investment portfolio, have provided us with an important source of revenues. However, toward the end of 2005 and in early 2006, we experienced losses in the value of our investment portfolio due to increases in prevailing interest rates in Chile and the concurrent decline in value of the debt securities, especially Chilean government bonds, in our portfolio. Accordingly, we liquidated positions in our investment portfolio, thereby reducing our exposure to potential losses in connection with fluctuations in prevailing interest rates. Our net interest revenue also decreased in the nine-month period ended on September 30, 2006 as compared to the same period in 2005. This decrease of Ch$3,713 million was due to the decrease in our trading securities portfolio mentioned above because we no longer received interest revenues to the extent that such portfolio's assets were liquidated assets. Another important factor that help explain the decrease in our net interest revenue is the above-mentioned increase in prevailing domestic interest rates toward the end of 2005. Since we re-price our interest-bearing liabilities more frequently than our interest-earning assets, these obligations became more expensive when renegotiated. We estimate the impact of the lower investment portfolio on our net interest revenue to be approximately Ch$11,911 million through the third quarter of 2006 (when comparing revenues of 2006 to 2005). Other net operating income decreased by Ch$5,018 million, or by 142.8%, in the nine-month period ended September 30, 2006 when compared to the same period in 2005. The decrease is largely due to an increase in sales force expenses relating to the growth in our consumer loan, credit card and residential mortgage loan portfolios (Ch$61,460 in consumer loans and Ch$82,112 in mortgage loans), and the fact that during 2005 CORP BANCA received substantial cash flow in connection with the liquidation of an asset received in lieu of payment, representing approximately Ch$2,000 million in non-recurring income. On the other hand, fees and income from services increased by Ch$3,926 million, or 24.1%, in the nine-month period ended September 30,2006 as compared to same period in 2005. This increase is a consequence of our efforts to increase fees in line with what we believe to be the market standard and to improve our fee collection processes, in each case mainly with respect to products oriented to retail banking customers (such as checking accounts and credit cards). We believe that the acceptance by our customers of these changes evidences a high level of customer loyalty relating to CORP BANCA's products and services. Another issue that explains this increase is the significant increase in Corp Banca's client basis. Operating Expenses. The following table shows comparative information relating to the composition of CORP BANCA's operating expenses for the first three quarters of 2005 and 2006, in millions of Chilean pesos (except percentages):
PERCENTAGE NINE MONTHS NINE MONTHS CHANGE CHANGE ENDED ENDED BETWEEN BETWEEN SEPTEMBER 30, SEPTEMBER 30, 2005 AND 2006 2005 AND 2006 2005 2006 PERIODS PERIODS - ------------------------------------- --------------- --------------- --------------- --------------- Personnel salaries and expenses (28,152) (30,011) (1,859) 6.6% Administrative and other expenses (12,987) (13,942) (955) 7.4% Depreciation and amortization costs (3,952) (3,938) 14 -0.4% Total operating expenses (45,091) (47,890) (2,799) 6.2%
Our operating expenses increased by Ch$2,799 million, or 6.2%, in the nine-month period ended September 30, 2006 compared to same period in 2005. This increase was attributable to higher personnel salaries and expenses, which rose by Ch$1,859 million, or 6.6%, from Ch$28,152 www.corpbanca.cl Huerfanos 1072, Santiago, Chile 2 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA million as of September 30, 2005 to Ch$30,011 million in the same period in 2006, reflecting our hiring of additional personnel to handle increased business activity in both commercial and operational activities. In addition, administrative and other expenses increased by Ch$955 million, or 7.4%, in the same period due primarily to increased expenditures on marketing campaigns and the leasing of additional branches. The increase in operating expenses had a negative impact on the efficiency ratio of the bank, which reached 47.4% as of September 30, 2006 (49.3% as of June 30, 2006), as compared to 39.3% as of September 30, 2005. Price-level Restatement. During the nine-month period ended September 30, 2006, we recorded net expenses from price-level restatement of Ch$8,243 million, representing an increase of Ch$1,064 million, or 14.8%, as compared to net expenses from price-level restatement of Ch$7,179 million in the same period in 2005. This increase reflects the higher inflation rate in Chile in the 2006 period as compared to the 2005 period and our higher capital base for the current year. Other Indicators. CORP BANCA's annualized return on equity slid from 14.8% as of September 30, 2005 to 9.9% in the same period in 2006 (9.2% for the second quarter of 2006) due to the negative impact of the liquidation of the majority of our investment portfolio and the increase in our equity base resulting from the capitalization of 50.0% of our 2005 net income. On a pre-tax basis, our return on equity in the nine-month period ended September 30, 2006 would have been 11.8% (11.0% for the six-month period ended June 30, 2006). Meanwhile, our net interest margin (net interest revenue over interest-earning assets) remained flat, at 3.5% (3.3% as of the end of 2006 second quarter). o BUSINESS ACTIVITY Loan Portfolio. Our total loan portfolio (net of interbank loans) amounted to Ch$3,122,764 million as of September 30, 2006, representing 8.8% growth in real terms during the twelve-month period then ended, which was lower than the 14.5% growth recorded by the Chilean banking sector for the same period. In addition, our loan portfolio market share in Chile decreased from 6.6% as of September 30, 2005 to 6.3% as of September 30, 2006. On the other hand, this decrease also reflects the results of our strategy of targeting loans to small- and medium-sized businesses. While loans in this sector tend to be for lower amounts than loans to larger corporations, they generate more favorable financial margins for us. According to the Chilean Superintendency of Banks, as of the third quarter of 2006 CORP BANCA posted twelve-month growth of 25.1% in loans to individuals, while the industry average was 17.3%. www.corpbanca.cl Huerfanos 1072, Santiago, Chile 3 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA The following table sets forth certain information with respect to CORP BANCA's loan portfolio, by loan type, as of the dates indicated, in millions of Chilean pesos (except percentages):
PERCENTAGE CHANGE CHANGE AS OF AS OF BETWEEN BETWEEN SEPTEMBER 30, SEPTEMBER 30, 2005 AND 2006 2005 AND 2006 2005 2006 PERIODS PERIODS - ------------------------------------- --------------- --------------- --------------- --------------- Commercial* 1,345,228 1,417,020 71,792 5.3% Consumer* 346,481 408,121 61,640 17.8% Foreign trade 247,566 250,726 3,160 1.3% Housing mortgages 104,493 151,650 47,157 45.1% Commercial mortgages 204,899 189,460 (15,439) (7.5%) Other commercial mortgages 1,101 1,670 569 51.6% Other housing mortgages 119,566 154,521 34,955 29.2% Leasing contracts 205,682 218,837 13,156 6.4% Factored receivables 51,922 60,124 8,202 15.8% Contingent 221,462 248,286 26,824 12.1% Past due loans 22,385 22,270 (115) (0.5%) Other outstanding loans 260 78 (182) (70.0%) Total loans (excluding interbank loans) 2,871,046 3,122,764 251,718 8.8%
(*) Includes overdrafts The loan types that demonstrated the highest growth in relative terms were residential mortgage loans (comprised of the Housing mortgages and Other housing mortgages lines in the above table) with a 36.6% increase as of September 30, 2006, as compared to September 30, 2005, factoring loans with a 15.8% increase and consumer loans with a 17.8% increase during the same period. The 36.6% increase in residential mortgages loans easily outpaced the 14.7% growth reported for this loan type in the Chilean banking sector for the same period. This growth allowed us to increase our residential mortgage loan market share in Chile from 2.5% as of September 30, 2005 to 3.0% as of September 30, 2006. Other Indicators. For the nine-month period ended September 30, 2006, we had a risk index (allowances for loan losses over total loans) of 1.4%, which compares favorably to our 1.6% risk index for the same period in 2005 and is in line with the 1.5% risk index for the Chilean banking sector for the same period of current year. The improvement in the risk index was due mainly to changes in the composition of our loan portfolio, including the decrease in past due loans (when measured over total loans), since they went from 0.8% to 0.7% as of September 2006. Reported past due loans over total loans (net of interbank loans) for the Chilean banking sector were 0.8% as of September 30, 2006. Our coverage ratio, measured as allowances for loan losses over past due loans, decreased from 205.7% as of September 30, 2005 to 199.6% as of September 30, 2006. The Chilean banking sector recorded a coverage ratio of 192.5% as of September 30, 2006. Notwithstanding the decrease in our coverage ratio, we believe that this ratio indicates a healthy amount of coverage against potential losses for past due loans. www.corpbanca.cl Huerfanos 1072, Santiago, Chile 4 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA o FINANCING The following table sets forth certain information with respect to CORP BANCA's sources of financing as of the dates indicated, in millions of Chilean pesos (except percentages):
PERCENTAGE CHANGE CHANGE AS OF AS OF BETWEEN BETWEEN SEPTEMBER 30, SEPTEMBER 30, 2005 AND 2006 2005 AND 2006 2005 2006 PERIODS PERIODS - ------------------------------------- --------------- --------------- --------------- --------------- Saving accounts and time deposits 1,759,090 1,566,133 (192,957) (11.0%) Current (checking) accounts 150,626 159,588 8,962 5.9% Banker's drafts and other sight deposits 99,243 87,835 (11,408) (11.5%) Mortgage bonds 315,768 332,696 16,928 5.4% Domestic borrowings 107,294 132,391 25,096 23.4% Foreign borrowings 243,502 177,344 (66,158) (27.2%) Funds in process of settlement 74,326 20,774 (53,552) (72.0%) Current (checking) accounts + other sight deposits (*) 175,543 226,649 51,106 29.1%
(*) Net from funds in process of settlement Our domestic and other borrowings (saving accounts and time deposits, current (checking) accounts, banker's drafts and other sight deposits, mortgage bonds and domestic borrowings) decreased by Ch$153,378 million, or 6.3%, as of September 30, 2006 as compared to same period previous year. The main reason for this decrease is that our financing needs have decreased as we have generated cash by gradually liquidating our investment securities position. This decrease was primarily due to a decrease of Ch$192,957 million, or 11.0%, in saving accounts and time deposits. Our foreign borrowings decreased by Ch$66,158 million, or 27.2%, reflecting the appreciation of the Chilean peso against the U.S. dollar. Although these decreases have reduced the amount of available cash, the liquidation of the majority of investments in our treasury portfolio, described above, provided us with cash to finance a significant part of our growth and to service our liabilities. o SHAREHOLDERS' EQUITY The capitalization of 50.0% of our 2005 net income at the beginning of 2006, in the amount of Ch$26,316 million, enhanced our ability to grow our loan portfolio and to maintain favorable solvency ratios. With capital and reserves of Ch$395,453 million as of September 30, 2006, we ranked as the fourth largest private bank in Chile and had an equity market share in Chile of 8.2% as of that date according to figures published by the Chilean Superintendency of Banks. Our Basle Index at the end of the third quarter of 2006 was 14.3% compared to 13.9% as of September 30, 2005. www.corpbanca.cl Huerfanos 1072, Santiago, Chile 5 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA SEPTEMBER 2006 RESULTS CONFERENCE CALL You are invited to participate in Corp Banca's conference call on Monday, November 13, 2006, at 16:15 New York time (18:15 Santiago time). Mario Chamorro Carrizo, Corp Banca's Chief Executive Officer, will host the call. We suggest that participants call at least 10 minutes prior to the start time. To access the call, please dial as set forth below: o U.S. participants, please dial 1866 819 7111; o U.K. participants, please dial 0800 953 0329; and o Participants outside the U.S. and the U.K., please dial +44 1452 542 301. In the event of a problem with the above numbers, participants should dial one of the following numbers and reference "Corp Banca": o U.S. participants: 1866 869 2352; o U.K. participants: 0800 694 1449; and o Participants outside the U.S. and the U.K.: +44 1452 560 304. For your convenience, a 24-hour instant replay facility will be available, following the completion of the conference call, until Thursday November 16, 2006. To listen to the replay, please call: o U.S. participants: 1866 247 4222; Access Code: 2339939#; o U.K. participants: 0800 953 1533; Access Code: 2339939#; and o Participants outside the U.S. and the U.K.: +44 1452 550 000; Access Code: 2339939#. SLIDES AND AUDIO WEB CAST: There will also be a live web cast of the conference call with PowerPoint slides through the Internet accessible through the website of Capital Link at www.capitallink.com. Please click on the button "Corp Banca Third Quarter 2006 Results Web cast". Participants to the live web cast should register on the website approximately 10 minutes prior to the start of the web cast. The web cast, together with this press release, will be archived and accessible through Corp Banca's website, www.corpbanca.cl, in the "Investor Relations - Financial Information". www.corpbanca.cl Huerfanos 1072, Santiago, Chile 6 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA CONSOLIDATED STATEMENTS OF INCOME (unaudited) (In millions of Chilean pesos as of September 30, 2006 (except percentages))
NINE MONTHS NINE MONTHS ENDED ENDED CHANGE SEPTEMBER 30, SEPTEMBER 30, ---------------------------------- 2005 2006 CH$ MILLIONS % - ------------------------------------- --------------- --------------- --------------- --------------- OPERATING INCOME Net interest revenue 87,376.7 83,663.3 (3,713.4) (4.2%) Gains from trading activities 14,086.2 4,212.9 (9,873.3) (70.1%) Fees and income from services, net 16,318.5 20,244.7 3,926.2 24.1% Foreign exchange transactions, net 579.9 1,381.4 801.5 138.2% Other operating income (loss), net (3,513.8) (8,531.7) (5,017.9) 142.8% Gross margin 114,847.5 100,970.6 (13,876.9) (12.1%) Personnel salaries and expenses (28,151.7) (30,010.6) (1,858.9) 6.6% Administrative and other expenses (12,987.0) (13,941.8) (954.8) 7.4% Depreciation and amortization (3,952.0) (3,937.7) 14.3 (0.4%) Total operating expenses (45,090.7) (47,890.1) (2,799.4) 6.2% Net operating income 69,756.8 53,080.5 (16,676.3) (23.9%) Provisions for loan losses (*) (11,512.7) (9,944.2) 1,568.5 (13.6%) Operating income 58,244.1 43,136.3 (15,107.8) (25.9%) OTHER INCOME AND EXPENSES Non-operating income 2,305.9 1,561.6 (744.3) (32.3%) Non-operating expenses (3,150.9) (2,043.8) 1,107.1 (35.1%) Income attributable to investments in other companies 163.5 478.9 315.4 192.9% Price level restatement (7,179.0) (8,243.1) (1,064.1) 14.8% Total other income and expenses (7,860.5) (8,246.4) (385.9) 4.9% Income before income taxes 50,383.6 34,889.9 (15,493.7) (30.8%) Income taxes (9,044.8) (5,552.2) 3,492.6 (38.6%) Income after income taxes 41,338.8 29,337.7 (12,001.1) (29.0%) Minority interest Net income 41,338.8 29,337.7 (12,001.1) (29.0%)
(*) Under law regulations effective since January 1, 2004 provisions for loan losses are stated net of recoveries of previously charged off loans www.corpbanca.cl Huerfanos 1072, Santiago, Chile 7 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA
AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, 2005 OR FOR THE 2005 OR FOR THE NINE MONTHS THEN NINE MONTHS THEN SELECTED PERFORMANCE RATIOS ENDED ENDED - -------------------------------------------------------------- ------------------- ------------------- SOLVENCY INDICATORS Basle index 13.9% 14.3% Shareholders' equity /Total assets 11.3% 12.0% Shareholders' equity /Total liabilities 12.8% 13.7% CREDIT QUALITY RATIOS Risk index (1) 1.6% 1.4% Past due loans / Total loans 0.8% 0.7% Allowances / Total loans 1.6% 1.4% Allowances / Past due loans 205.7% 199.6% Provisions for loan losses / Total loans 0.5% 0.4% Provisions for loan losses / Gross margin 10.0% 9.8% Provisions for loan losses / Net income 27.8% 33.9% Profitability ratios Net interest revenue / Interest-earning assets (2) 3.5% 3.5% Net interest revenue, as adjusted (3) / Interest-earning asset 3.4% 3.4% Gross margin/ Total assets 4.2% 3.8% Gross margin/ Interest-earning assets (2) 4.5% 4.2% Provisions and charge-off expenses/ Total assets 0.4% 0.4% ROA (before taxes), over total assets 1.8% 1.3% ROA (before taxes), over interest-earning assets (2) 2.0% 1.4% ROE (before taxes) 18.0% 11.8% ROA, over total assets 1.5% 1.1% ROA, over interest-earning assets (2) 1.6% 1.2% ROE 14.8% 9.9% Earnings from subsidiaries / Investment in subsidiaries 13.2% 37.3% EFFICIENCY RATIOS Operating expenses / Total assets 1.6% 1.8% Operating expenses/ Total loans 2.1% 2.0% Operating expenses / Gross margin 39.3% 47.4% EARNINGS Earnings per share before taxes (Chilean pesos per share) 0.30 0.21 Earnings per ADR before taxes (U.S. dollars per ADR) 2.75 1.90 Earnings per share (Chilean pesos per share) 0.24 0.17 Earnings per ADR (U.S. dollars per ADR) 2.26 1.60
(1) New risk index considers total loan loss alloawances (2) Interest-earning assets : Total loans and financial investments (3) Includes exchange rate earnings from the forward contracts www.corpbanca.cl Huerfanos 1072, Santiago, Chile 8 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA CONSOLIDATED BALANCE SHEETS (unaudited) (In millions of Chilean pesos as of June 30, 2006, except percentages)
NINE MONTHS NINE MONTHS ENDED ENDED CHANGE SEPTEMBER 30, SEPTEMBER 30, ---------------------------------- 2005 2006 CH$ MILLIONS % - ------------------------------------- --------------- --------------- --------------- --------------- ASSETS Cash and due from banks 125,585.3 85,613.5 (39,971.8) (31.8%) Total Loans 2,871,045.6 3,122,763.7 251,718.1 8.8% Provisions (46,052.3) (44,444.7) 1,607.6 (3.5%) Loans, net 2,824,993.3 3,078,319.0 253,325.7 9.0% Loans to financial institutions 31,145.7 36,009.8 4,864.1 15.6% Securities trading 20,743.8 23,818.5 3,074.7 14.8% Investments 496,715.5 109,748.7 (386,966.8) (77.9%) Financial derivative contracts 7,599.6 4,502.6 (3,097.0) (40.8%) Other assets 114,796.0 163,088.5 48,292.5 42.1% Fixed assets 34,886.9 34,475.1 (411.8) (1.2%) Total assets 3,656,466.1 3,535,575.7 (120,890.4) (3.3%) LIABILITIES Current (checking) accounts 150,626.2 159,588.1 8,961.9 5.9% Saving accounts and time deposits 2,480,693.8 2,295,490.2 (185,203.6) (7.5%) Subordinated bonds 198,043.5 232,509.6 34,466.1 17.4% Borrowings from domestic financial 107,294.3 132,390.5 25,096.2 23.4% institutions Foreign borrowings 243,501.7 177,343.7 (66,158.0) (27.2%) Financial derivative contracts 0.0 3,669.4 3,669.4 0.0% Other borrowings 61,754.9 109,793.4 48,038.5 77.8% Total liabilities 3,241,914.4 3,110,784.9 (131,129.5) (4.0%) Shareholders' equity 414,551.7 424,790.8 10,239.1 2.5% Total liabilities and shareholders' equity 3,656,466.1 3,535,575.7 (120,890.4) (3.3%)
www.corpbanca.cl Huerfanos 1072, Santiago, Chile 9 Phone: 56 (2) 687 8000 [GRAPHIC OMITTED] CORP BANCA - -------------------------------------------------------------------------------- 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 Corp Banca 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. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and Corp Banca 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. - -------------------------------------------------------------------------------- Contacts - CORP BANCA: Raul Rubel B. Investor Relations Officer (56 - 2) 660-2340 raul.rubel@corpbanca.cl investorrelations@corpbanca.cl INVESTOR RELATION / MEDIA Nicolas Bornozis President Capital Link, Inc. / New York (212) 661-7566 nbornozis@capitallink.com www.corpbanca.cl Huerfanos 1072, Santiago, Chile 10 Phone: 56 (2) 687 8000 -----END PRIVACY-ENHANCED MESSAGE-----