-----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, KTGaikLB02bBF1vde3dQ8R5KmoSEOQYfEIMV3XAq4acYSFrn7O8BgPjbPGaJUVxo ldc5D6NVrWRUMjnqUPh9Kg== 0001193125-09-231822.txt : 20091112 0001193125-09-231822.hdr.sgml : 20091111 20091112063128 ACCESSION NUMBER: 0001193125-09-231822 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20091111 FILED AS OF DATE: 20091112 DATE AS OF CHANGE: 20091112 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: 091173897 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 d6k.htm FORM 6-K Form 6-K

 

 

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 November 2009

(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  ¨

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  ¨            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  ¨            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  ¨            No  x

 

 

 


On November 10, 2009, CorpBanca issued a press release announcing the details of a conference call to discuss its third quarter 2009 results. The press release is attached hereto as Exhibit 99.1.

On November 11, 2009, CorpBanca issued a press release announcing its third quarter 2009 results. The press release is attached hereto as Exhibit 99.2.

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/    SERGIO BENAVENTE        
Name:   Sergio Benavente
Title:   Chief Financial Officer

Date: November 11, 2009


EXHIBIT INDEX

 

Exhibit

  

Description

99.1    Press release announcing the details of a conference call to discuss CorpBanca’s third quarter 2009 results.
99.2    Press release announcing details of CorpBanca’s third quarter 2009 results.
EX-99.1 2 dex991.htm PRESS RELEASE ANNOUNCING THE DETAILS OF A CONFERENCE CALL Press Release announcing the details of a conference call

Exhibit 99.1

LOGO

CorpBanca Announces Conference Call and

Third Quarter 2009 Financial Results

Santiago, Chile, November 10, 2009 - You are invited to participate in CorpBanca’s (NYSE: BCA, Santiago: CORPBANCA) conference call on Thursday, November 12th, 2009 to discuss the Third Quarter 2009 Results and respond to investor questions. On November 11th, 2009, CorpBanca will release its Third Quarter Earnings Report after the market closes.

 

Time:    3:00 pm (Santiago, Chile)   
   1:00 pm New York   
   6:00 pm (UK)   
Call Numbers:    U.S.A. participants please dial    1866 819 7111
   Outside the US please dial    +44 1452 542 301
   UK participants please dial    0800 953 0329

Chairperson: Mr. Sergio Benavente, Chief Financial Officer

You should dial in 10 minutes prior to the commencement of the call.

For your convenience, a 24 hour instant replay facility will be available, following the completion of the conference call, until Sunday, November 15, 2009.

Slides and audio webcast:

There will also be a live -and then archived- webcast 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 “THIRD QUARTER 2009 FINANCIAL RESULTS WEBCAST”, The webcast will also be available on the company’s website at www.corpbanca.cl. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

To listen to the replay, please call:

 

Instant Replay Number    U.S.A.:    1866 247 4222    Access Code: 2339939#
Instant Replay Number    OTHER:    +44 1452 550 000    Access Code: 2339939#
Instant Replay Number    U.K.:    0800 953 1533    Access Code: 2339939#

 

About CorpBanca

CorpBanca (NYSE: BCA, Santiago: CORPBANCA), is a Chilean financial institution offering a wide variety of corporate and retail financial products and services.

Contacts:

 

CorpBanca:    Capital Link:
Juan Antonio Abraham Massmann    Nicolas Bornozis
Investor Relations    President
Santiago, Chile    New York, USA
Tel: (562) 660-2536    Tel: (212) 661-7566
IR@corpbanca.cl    nbornozis@capitallink.com
EX-99.2 3 dex992.htm PRESS RELEASE ANNOUNCING DETAILS OF CORPBANCA'S THIRD QUARTER 2009 RESULTS Press Release announcing details of CorpBanca's third quarter 2009 results

Exhibit 99.2

LOGO

CORPBANCA ANNOUNCES THIRD QUARTER 2009 RESULTS

Santiago, Chile, November 11, 2009 CORPBANCA (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 ended September 30, 2009. This report is based on unaudited consolidated financial statements and 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 September 30, 2009 exchange rate of Ch$551.21 per U.S. dollar.

Financial highlights

 

 

   

Net income for the third quarter of 2009 reached Ch$24.2 billion, an increase of Ch$3.3 billion when compared to the prior quarter.

 

   

Provision for loan losses during 3Q09 amounted to Ch$19.17 billion, an increase of Ch$6.3 billion when compared to the prior quarter.

 

   

Total operating expenses decreased 15.6% when compared to the prior quarter.

 

   

Financial investments totalled Ch$580,379 billion as of September 30, 2009, representing a quarter-on-quarter contraction of 7.3%.


Press Release

November 11, 2009

Page 2 / 13

 

Management’s Discussion and Analysis

 

I) Financial Performance Review

Net income for the third quarter of 2009 was Ch$24.2 billion, an increase of 16.2% when compared to Ch$20.9 billion for the second quarter of 2009. Total operating revenues reached Ch$75.5 billion, an increase of 6.2% when compared to Ch$71.0 billion for the second quarter of 2009, while provisions for loan losses increased by Ch$5.9 billion, an increase of 45.2% when compared to Ch$13.2 billion for the second quarter of 2009.

Our condensed income statement for the three-month periods ending June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos, is as follows:

 

     For the three
month period ended,
 
     Jun-09     Sep-09     Change  

Net interest revenue

   53,222      52,477      (745

Fees and income from services, net

   12,042      9,631      (2,411

Treasury business

   4,629      11,812      7,183   

Other revenue

   1,165      1,530      365   

Total operating revenue

   71,058      75,450      4,392   

Provision for loan losses

   (13,204   (19,171   (5,967

Operating expenses

   (32,848   (27,718   5,130   

Income attributable to investments in other companies

   19      319      300   

Net income before taxes

   25,025      28,880      3,855   

Income taxes

   (4,165   (4,631   (466

Net income

   20,860      24,249      3,389   

Net interest revenues

Net interest revenues decreased quarter-on-quarter by Ch$0.74 billion or 1.4% when compared to the prior quarter. This decrease in net revenues was mainly due to our balance sheet structure, which is short in pesos and foreign currency (mainly US dollars) and long in UF. The UF is revalued in monthly cycles according to the inflation rate of the previous month. During the second and third quarter of 2009, the UF changed by -0,1% and -0,5% respectively reflecting the period of deflation the Chilean economy was experiencing.

Fees and income from services

Net fees and income from services for the third quarter amounted to Ch$9.6 billion, a Ch$2.4 billion decrease when compared to the prior quarter. The following table is a summary of our fees and income from services for the three-month periods ended June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     For the three
month period ended,
 
     Jun-09    Sep-09    Change  

Bank(*)

   7,345    5,514    (2,237

Mutual Fund Management and Securities Brokerage Services

   2,142    2,151    9   

Insurance Brokerage

   2,027    1,785    (242

Financial Advisory Services

   272    270    (2

Legal Advisory Services

   256    317    61   

Total

   12,042    9,631    (2,411

 

(*) includes consolidation adjustments


Press Release

November 11, 2009

Page 3 / 13

 

The decrease of Ch$2.2 billion in fee revenues from banking operations during the third quarter versus the prior quarter was mainly related to lower net credit card and other fees for services rendered.

The fee based revenue from our Mutual Fund Management and Securities brokerage areas remained relatively unchanged. However, fees from our Mutual Fund Management increased by approximately Ch$0.5 billon as a result of a higher average amount of assets under management, which increased from Ch$454 billion in the second quarter of 2009 to Ch$527 billion in the third quarter of 2009.

This increase was principally offset by a reduction in fees from our Securities Brokerage Service as a result of the recognition of a non recurring fee revenue during the second quarter of the year and lower commissions on stock trading.

The quarter on quarter decrease from insurance brokerage fees, from Ch$2.0 billion to Ch$1.8 billion, is principally a result of seasonal effects during the second quarter of the year related to the annual renewal of insurance agreements for leased assets.

Financial Advisory Services provides a broad range of financial advisory services to a variety of corporations, including those related to debt restructuring, mergers and acquisitions, privatizations and company valuation. Fees from this subsidiary are recognized on a completed contract basis and remained flat quarter on quarter. Financial Advisory Services remained relatively unchanged.

Legal Advisory Services is one of our subsidiary created on January 2007, and whose principal mission is provide legal advisory services related to our businesses. The quarter on quarter increase in Legal Advisory Services fees, from Ch$256 million to Ch$317 million, is principally a result of a greater demand in our housing mortgages business segment.

Trading and investment income - Net Foreign exchange gains and losses

Trading and investment income primarily includes the results from our trading portfolio financial assets (interest, marked-to-market adjustments, gains and losses from sales), gains and losses from our derivative trading portfolio, and gains and losses from sales financial investments available-for-sale.

Net foreign exchange gains and losses include both the results of foreign exchange transactions as well as the recognition of the effect of exchange rate fluctuations on assets and liabilities stated in foreign currencies and loans and deposits in Chilean pesos indexed to foreign currencies. Derivatives and financial instruments that may provide effective economic hedges for managing risk positions are generally treated and reported as trading.

The following table is a summary of our trading and investment income and net foreign exchange gains and losses for the three-month periods ending June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     For the three
month period ended,
 
     Jun-09     Sep-09     Change  

Trading and investment income:

      

Trading instruments

   (1,764   2,267      4,4031   

Derivatives held-for-trading

   (13,604   9,887      23,491   

Available-for-sale investments and other

   1,548      3,860      2,312   

Total trading and investment income

   (13,820   16,014      29,833   

Net foreign exchange transactions

   18,449      (4,202   (22,651

Net gains (losses) from treasury business

   4,629      11,812      7,183   


Press Release

November 11, 2009

Page 4 / 13

 

Total income from our treasury business during the third quarter of 2009 increased by Ch$7,2 billion when compared to the prior quarter. This increase is explained by higher income from our trading and investment portfolio, due to marked to market adjustments and sales of trading instruments as well as proceeds from available-for-sale investments, which was partially offset by losses in our foreign exchange transactions due to the renewal of our long position in derivatives used to hedge our liability gap in foreign currency due to the devaluation of the US dollar against the Chilean peso. For more information see section II Financial Condition, “Financial Investments”.

Provision for loan losses

The following table provides information relating to the composition of our provisions for loan losses for the three-month periods ending June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     For the three
month period ended,
 
     Jun-09     Sep-09     Change  

Commercial, net

   (4,123   (10,430   (6,307

Mortgage, net

   (587   (693   (106

Consumer, net

   (8,494   (8,048   (446

Net charge to income

   (13,204   (19,171   (5,967

Our provision for loan losses during the third quarter of 2009 amounted to Ch$19.17 billion, an increase of Ch$5.9 billion when compared to the prior quarter.

The change in provisions for loan losses from commercial loans was mainly related to a change in risk classification of certain corporate customers related to the Chilean salmon industry crisis.

The decrease in provision expenses in consumer loans is mainly related to our traditional retail customers and a stable quarter-on-quarter provision level in our consumer finance portfolio. We have managed to decrease our credit risk in consumer loans by introducing stricter credit risk provisions and approval requirements that were put in place during the prior years.

Operating expenses

The following table provides comparative information relating to our operating expenses for the three-month periods ending June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     For the three
month period ended,
 
     Jun-09    Sept-09    Change  

Personnel salaries expenses

   16,497    15,417    (1,080

Administrative and other expenses

   12,158    9,647    (2,511

Depreciation, amortization and impairment

   1,482    1,615    133   

Other operating expenses

   2,711    1,039    (1,672

Total operating expenses

   32,848    27,718    (5,130

Our total operating expenses decreased during the third quarter of 2009 by 15.6% when compared to the last quarter. Personnel salaries expenses decreased by Ch$1.1 billion pesos, or 6.5% quarter-on-quarter while administrative and other expenses decreased by Ch$2.5 billion, or 20.6% quarter-on-quarter. The decrease in personnel salaries expenses is related to a decrease in severance pay and other personnel expenses.


Press Release

November 11, 2009

Page 5 / 13

 

As part of our strategy, we continue to maintain our efficiency leadership through our cost control culture and our state of the art technology. Our consolidated efficiency ratio (operating expenses / operating revenues) for the 2Q09 and 3Q09 was 46.2% and 36.7%, respectively.

II) Financial Condition

Loan portfolio

Our total loan portfolio (excluding loans and receivables to banks) totalled Ch$ 4.7 billion as of September 30, 2009, representing a slight decrease of 0.2% when compared to the prior quarter.

The following table provides comparative information related to our loan portfolio for the quarters ended June 30, and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     Jun-09    Sep-09    Change  

Wholesale

   3,520,409    3,494,199    (26,210 ) 

Commercial

   2,862,386    2,863,877    1,491   

Foreign trade

   304,788    283,444    (21,344

Leasing and Factoring

   353,235    346,878    (6,357

Retail

   1,186,846    1,202,565    15719   

Consumer

   456,903    439,448    (17,455

Housing mortgages

   729,943    763,117    33,174   

Total loans

   4,707,255    4,696,764    (10,491

On a quarter-on-quarter basis our wholesale portfolio decreased slightly by 0.7%. This decrease is primarily a result of Foreign Trade operations, which decreased from Ch$0.30 billion to Ch$0.28 billion, due to a translation drop in the foreign trade line of business explained by the devaluation of the US dollar against the Chilean peso during the third quarter of the year, and by a reduction in the amount of new operations.

The quarter-on-quarter growth in retail loans was due to mortgage loans and partially offset by a decrease in our consumer loan portfolio. This drop in consumer loans was mainly related to our consumer finance portfolio and was caused by our business decision to reduce the risk in this segment by implementing stricter admission and approval requirements. As part of this strategy, we have also reduced the average amount loaned to each customer. Our current market share in retail loans is 4.8%.

Housing mortgages loans for the third quarter of 2009 were Ch$0.76 billion, a 4.5% increase when compared to the Ch$0.73 billion of the second quarter of 2009. This increase is principally a result of better economic conditions.

Financial investments

Our financial investments totalled Ch$580,379 billion as of September 30, 2009, representing a decrease of 10.9% quarter-on-quarter.

The following table provides comparative summary of our investment portfolio for the periods ended June 30 and September 30, 2009, expressed in millions of Chilean nominal pesos:

 

     Jun-09    Sep-09    Change  

Trading portfolio financial assets

   113,880    105,498    (8,382

Financial investments available-for-sale

   538,109    474,881    (63,228

Financial investments held-to-maturity

   —      —      —     

Total Financial Investments

   651,989    580,379    (71,610 ) 


Press Release

November 11, 2009

Page 6 / 13

 

Our investment portfolio consists of trading and available-for-sale assets. Trading instruments correspond to financial instruments acquired to generate gains from short-term price fluctuations, brokerage margins, or that are included in a portfolio with a pattern of gaining profit in the short-term Trading instruments are stated at fair value.

Investment instruments are classified in two categories: held-to-maturity investments and instruments available-for-sale. Held-to-maturity investments include only those instruments which the Bank has the capacity and intent to hold until maturity. We currently do not have held-to-maturity investment. 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.

The quarter-on-quarter decrease was principally a result of taking advantage of market changes in interest rates. During the third quarter of the year, medium and long term interest rates dropped 47 and 11 basis points respectively when comparing closing rates for the second and third quarter. For more information see section I Financial Performance Review, “Trading and investment income – Net Foreign exchange gains and losses”.

Funding strategy

The International and Treasury Division is responsible for providing liquidity, determining the financing structure, managing the investment portfolio and foreign currency positions.

The following table summarizes our funding as of June 30 and September 30, 2009, in millions of Chilean nominal pesos:

 

     Jun-09    Sep-09    Change  

Checking accounts

   285,661    286,147    486   

Other non-interest bearing deposits

   127,723    131,695    3,972   

Time deposits and savings accounts

   3,113,157    3,034,290    (78,867

Repurchase agreements

   340,327    290,469    (49,858

Mortgage bonds

   301,391    286,653    (14,738

Banking Bonds

   312,500    312,748    248   

Subordinated Bonds

   152,526    151,365    (1,161

Domestic borrowings

   143,023    161,270    18,247   

Foreign borrowings

   330,345    369,019    38,674   

Our current funding strategy is to continue to utilize all sources of funding in accordance with their costs, their availability and our general asset and liability management strategy. As a result, during the third quarter our funding strategy was mainly driven by increasing our foreign borrowings and our domestic borrowing due to the downward adjustment in the spreads applied to these operations and by using the proceeds from the sale of our available-for-sale investments portfolio, allowing us to reduce more expensive sources of funds. More specifically, time deposits and repurchase agreements decreased quarter on quarter by 2.5% and 14.7% respectively.

Today our emphasis is being placed on increasing our deposits from retail customers and on lengthening the maturity of our liabilities by issuing subordinated bonds. For more information see section III Other Related Information, “Subordinated bonds”.

Shareholders’ Equity

We are the fifth-largest private bank in Chile, based on our Shareholders’ Equity of Ch$492.1 billion and our loans of Ch$4,731 billion as of September 30, 2009. We have 221,336,558.3 thousand shares outstanding (see section III Other related information “Share Repurchase Program” for further details regarding our share repurchase program), a market capitalization of Ch$798.7 billion (based on a share price of Ch$3.61 pesos per share). During the first quarter of 2009, we paid dividends totalling 100% of 2008 net income.


Press Release

November 11, 2009

Page 7 / 13

 

III) Other Related Information

Dividend Distribution Policy

As a result of the recent financial reporting changes due to the implementation of International Financial Accounting Standards (IFRS) in Chile, the Bank during the 2009 General Shareholders meeting adopted as a dividend policy the distribution of at least 50% of each fiscal year net income, calculated as total net income for the period less an amount which maintains capital constant in real terms.

New York Branch Office

On October 22, 2008, the Federal Reserve Board granted the Bank authorization to establish a Branch in the City of New York, United States of America. On October 24, 2008, the Office of the Comptroller of the Currency (OCC) granted the Bank the respective authorization to open a Branch in the City of New York, United States of America. In May 2009, the branch was officially open for business.

Share Repurchase Program

On April 15, 2008, at an extraordinary shareholders’ meeting, our shareholders approved a program for CorpBanca to purchase shares issued by us, or the Share Repurchase Program, to be purchased in the local Chilean market through one or more tender offers in accordance with article 198-5 of the Securities Market Law. The purpose of the Share Repurchase Program is to invest and trade our own shares depending on share price fluctuations experienced throughout the duration of the Program. The main terms and conditions of the Share Repurchase Program are set forth as follows:

 

   

The maximum percentage of shares to be repurchased will be equivalent to 5% of the shares issued and paid and outstanding, or up to 11,345,464,528 shares, shares may only be repurchased for up to the amount of retained earnings.

 

   

The minimum repurchase price to be paid for the shares will be Ch$2.90 per share and the maximum repurchase price will be Ch$3.05 per share.

 

   

The Share Repurchase Program will have a term of three years beginning on April 15, 2008.

 

   

Shares repurchased must be sold within 24 months of acquisition; any shares not resold during this time frame will be cancelled, resulting in a reduction of paid-in capital.

 

   

If shares are resold, shareholders have a pre-emptive right to acquire the repurchased shares.

 

   

Repurchased shares, although registered in our name, do not have voting or dividend rights.

On April 22, 2008, our Board of Directors, acting as authorized by our shareholders at the extraordinary shareholders’ meeting held on April 15, 2008, agreed to the following:

 

   

To set the repurchase price of the shares at Ch$3.03 per share.

 

   

That the number of shares to be offered in the Share Repurchase Program will be 5,672,732,264 shares, which represent 2.5% of our total issued and outstanding shares.

 

   

The share acquisition process will be carried out in accordance with the terms and conditions approved by the Shareholders at the extraordinary shareholders’ meeting through one or more tender offers (Ofertas Públicas de Adquisicion de Acciones) in accordance with article 198-5 of the Securities Market Law, and Circular No, 1,514 of the Superintendency of Securities and Insurance and applicable law in the Securities Exchange of the Santiago Stock Exchange, through the System of Firm Block Offers (Sistema de Ofertas a Firme en Bloque).

 

   

The offer commenced on April 30, 2008, for a period of 30 days.

 

   

The tender offer expired on May 29, 2008, and 6,849,927,252 shares were tendered.

 

   

As acceptance orders were received for more shares than the number of shares offered to be purchased, in accordance with the conditions of the offer, a pro rata factor of 0,828144892 was applied.

 

   

The total number of shares repurchased and held as treasury stock was 5,672,732,264, reducing our total shares outstanding to 221,236,558,313.


Press Release

November 11, 2009

Page 8 / 13

 

On September 8, 2009, we announced an extraordinary General Shareholders’ Meeting to be held on October 15, 2009. Among others, the following items will be discussed during this meeting.

 

   

Authorizing the sale of the Bank’s own shares, equivalent to 2.5% of share capital, amounting to 5,672,732,264 shares, which, in conformity with article 27 C of the Securities Market Law and article 29 of its Regulations, would be offered preferentially to those shareholders registered in the respective shareholders’ registry 5 business days prior to the sale, prorated based on their share participation, for a period of 30 days from the date of publication of this option. Shareholders will also be asked to vote on whether to grant shareholders or their assignees a second preferential option period for those shareholders or assignees that purchase shares during the first preferential offer period and have expressed a desire to purchase any remaining shares not purchased in the initial period by the shareholders or their assignees. In this second period, the shareholder would have the right to purchase their prorated portion of any shares remaining once the initial preferential offer period has ended. This right should be exercised within a 45-day period after the first period expires. The above is independent of whether the Shareholders determine another second preferential option procedure.

 

   

Authorizing the Board of Directors to set the price of the shares to be sold in the preferential offer periods agreed upon by Shareholders.

 

   

At the Extraordinary General Shareholders’ Meeting held on October 15,2009, shareholders approved the reduction of the number of Directors from eleven to nine and the increase of the number of Alternate Directors from one to two. In addition, the following persons were elected to the Board of Directors:

Directors: Messrs. Alvaro Saieh Bendeck, Jorge Andres Saieh Guzman, Fernando Massu Tare, Fernando Aguad Dagach, Julio Barriga Silva, Brian O’Neill, Segismundo Schulin-Zeuthen Serrano, Jorge Selume Zaror And Hernan Somerville Senn.

Alternate Directors: Messrs. Juan Rafael Gutierrez Avila and Hector Valdes Ruiz.

Bonds

We have a bond program of U.F. 17,000,000 available to be placed in the local market. This is composed of U.F. 2,000,000 in series L bonds, U.F. 5,000,000 in series M bonds, and UF 4.000.000 in series N bonds. There are additional U.F. 6,000,000 in bonds which have been approved by the SBIF but have not yet been issued. Both, Series L and M bonds have annual coupon rates of 3.4% and have a maturity of 10 years and 5 years, respectively. Additionally, series N bonds have coupon rates of 9.0% and 5 years to maturity .

Subordinated bonds

During the first half of 2009, Corpbanca issued UF 2.330.000 in series V subordinated bonds. On July 28th, we placed another U.F. 3,000,000 in series V Subordinated bonds due on August 1, 2033. Those bonds were sold on the Santiago Stock Exchange. The proceeds were used to finance our normal business activities and improve our balance sheet structure.


Press Release

November 11, 2009

Page 9 / 13

 

CorpBanca’s Conference Call on Third Quarter 2009 Results

You are invited to participate in CorpBanca’s (NYSE: BCA, Santiago: CORPBANCA) conference call on Thursday, November 12th, 2009 to discuss the Third Quarter 2009 Results and respond to investor questions.

 

Time:    3:00 pm (Santiago, Chile)         
   1:00 pm New York            
   6:00 pm (UK)            
Call Numbers:    U,S,A, participants please dial    1866 819 7111         
   Outside the US please dial    +44 1452 542 301         
   UK participants please dial    0800 953 0329         

Chairperson:    Mr, Sergio Benavente, Chief Financial Officer

You should dial in 10 minutes prior to the commencement of the call.

For your convenience, a 24 hour instant replay facility will be available, following the completion of the conference call, until Sunday, November 15, 2009.

Slides and audio webcast:

There will also be a live -and then archived- webcast 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 THIRD QUARTER 2009 FINANCIAL RESULTS WEBCAST, The webcast will also be available on the company’s website at www.corpbanca.cl, Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

To listen to the replay, please call:

 

Instant Replay Number   U.S.A,:    1866 247 4222       Access Code: 2339939#   
Instant Replay Number   OTHER:    +44 1452 550 000       Access Code: 2339939#   
Instant Replay Number   U.K.:    0800 953 1533       Access Code: 2339939#   

 


Press Release

November 11, 2009

Page 10 / 13

 

Consolidated Statements of Income (unaudited)

 

 

     For the three months ended,  
(Expressed in millions of Chilean nominal pesos)    Jun-09     Sept-09  

OPERATING INCOME

    

Interest revenue

   89,642      74,517   

Interest expense

   (36,420   (22,040

Net interest revenue

   53,222      52,477   

Fees and income from services, net

   12,042      9,631   

Trading and investment income, net

   (13,819   16,014   

Foreign exchange gains (losses), net

   18,448      (4,202

Other operating revenue

   1,165      1,530   

Operating revenues

   71,058      75,450   

Provisions for loan losses

   (13,204   (19,171   

Net operating revenues

   57,854      56,279   

Personnel salaries expenses

   (16,497   (15,417

Administration expenses

   (12,158   (9,647   

Depreciation, amortization and impairment

   (1,482   (1,615

Other operating expenses

   (2,711   (1,039   

Net operating income

   25,006      (27,718

Income attributable to investments in other companies

   19      319   

Net loss from price-level restatement

   —       

Income before income taxes

   25,025      28,880   

Income taxes

   (4,165   (4,631

Net income

   20,860      24,249   


Press Release

November 11, 2009

Page 11 / 13

 

Consolidated Balance Sheets (unaudited)

 

 

(Expressed in millions of Chilean nominal pesos)    Jun-09     Sept-09  

Assets

    

Cash and due from banks

   122,912      139,915   

Items in course of collection

   102,264      189,735   

Trading portfolio financial assets

   113,880      105,498   

Financial investments available-for-sale

   538,109      474,881   

Financial investments held-to-maturity

   —        —     

Investments purchased under agreements to resell

   34,033      37,964   

Derivative financial instruments

   114,172      94,836   

Loans and receivables to banks

   13,305      19,283   

Loans and receivables to customers

   4,707,255     

Allowance for loan losses

   (87,178  
            

Loans and receivables to customers, net

   4,620,077      4,601,824   

Investments in other companies

   4,146      3,583   

Intangibles

   12,813      13,408   

Premises and equipment, net

   53,216      54,571   

Current income tax provision

   249      165   

Deferred income taxes

   18,397      17,878   

Other assets

   101,559      76,346   

Total assets

   5,849,132      5,829,887   

Liabilities

    

Current accounts and demand deposits

   413,384      417,842   

Items in course of collection

   75,109      156,969   

Investments sold under agreements to resell

   340,327      290,469   

Time deposits and saving accounts

   3,113,157      3,034,290   

Derivative financial instruments

   110,598      83,718   

Borrowings from financial institutions

   443,951      503,704   

Debt issued

   766,417      750,766   

Other financial obligations

   29,417      26,585   

Current income tax provision

   1,643      2,674   

Deferred income taxes

   16,090      16,845   

Provisions

   27,632      38,506   

Other liabilities

   33,228      15,454   

Total liabilities

   5,370,953      5,337,822   

Shareholders’ Equity:

    

Capital

   324,039      324,039   

Reserves

   14,156      14,156   

Valuation gains (losses)

   (4,491   (2,729

Retained earnings:

    

Retained earnings from previous periods

   127,178      127,178   

Income for the period

   34,594      58,843   

Less: Accrual for mandatory dividends

   (17,297   (29,422

Minority Interest

   —       

Total Shareholders’ Equity

   478,179      492,065   

Total liabilities and shareholders’ equity

   5,849,132      5,829,887   


Press Release

November 11, 2009

Page 12 / 13

 

Selected Performance Ratios (unaudited)

 

 

     As of or for the three
month period ended
 
     Jun-09     Sept-09  

Solvency indicators

    

Basle index

   12,35  

Shareholders’ equity / total assets

   8,18   8,44

Shareholders’ equity / total liabilities

   8,90   9,22

Credit quality ratios

    

Risk index (allowances / total loans )

   1,85   2,02

Provisions for loan losses / total loans(1)

   1,12   1,63

Provisions for loan losses / total assets(1)

   0,90   1,32

Provisions for loan losses / operating revenues

   18,58   25,4

Provisions for loan losses / net income

   63,30   79,1

Profitability ratios

    

Net interest revenue / interest-earning assets(1)(2)

   4,02   4,01

Total operating revenue / total assets(1)

   4,86   5,18

Total operating revenue / interest-earning assets(1)(2)

   5,37   5,77

ROA (before taxes), over total assets(1)

   1,71   1,98

ROA (before taxes), over interest-earning assets(1)(2)

   1,89   2,21

ROE (before taxes)(1)

   20,93   23,5

ROA, over total assets(1)

   1,43   1,66

ROA, over interest-earning assets(1)(2)

   1,58   1,86

ROE(1)

   17,45   19,7

Efficiency ratios

    

Operating expenses / total assets(1)

   2,25   1,90

Operating expenses/ total loans(1)

   2,79   2,36

Operating expenses / gross operating income

   46,23   36,7

Earnings

    

Diluted earnings per share before taxes (Chilean pesos per share)

   0,1131      0,1305   

Diluted earnings per ADR before taxes (U,S, dollars per ADR)

   1,0594      1,1154   

Diluted earnings per share (Chilean pesos per share)

   0,0943      0,1096   

Diluted earnings per ADR (U,S, dollars per ADR)

   0,8830      0,9366   

Total shares outstanding (thousands)

   221,236,558.3      221,236,558.3   

Exchange rate for US$1

   533,88      551,21   

 

(1) Annualized figures
(2) Interest-earning assets include loans and receivables to customers and banks, financial investments available-for-sale, and investments purchased under agreements to resell


Press Release

November 11, 2009

Page 13 / 13

 

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. 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:

Sergio Benavente

CFO, CorpBanca

Santiago, Chile

Tel: (562) 660-2559

investorrelations@corpbanca,cl

Nicolas Bornozis

President, Capital Link

New York, USA

Tel: (212) 661-7566

nbornozis@capitallink,com

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-----END PRIVACY-ENHANCED MESSAGE-----