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1 Third Quarter 2007 Financial Results

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Page 1: Third Quarter 2007 Financial Results › storage › PresentationQ3_2007.pdf · NON-OPERATING RESULTS (4) (588) (1.402) (814) (2.741) INCOME BEFORE INCOME TAXES 35.497 39.820 4.323

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Third Quarter 2007Financial Results

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Forward Looking StatementsThese forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the information set forth in these forward-looking statements include, but are not limited to, the effect of general economic conditions, increases or changes in competition in the markets in which we operate, the actions of competitors, our ability to implement and complete successfully our plans and strategies or delays or additional costs encountered in connection with their implementation, the benefits from and resources generated by our plans and strategy being less than or different from those anticipated, the costs or other results of pending or future investigations or legal proceedings, actions of courts, law enforcement agencies, government agencies and third-parties, fluctuations in exchange rates, the diversion of management's attention from implementing our plans and strategy, and other factors. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements, which only speak as of the date that they were made. Corp Banca does not undertake any obligation to release publicly any revisions to such forward-looking statements included in this web-page, to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Unless otherwise stated, figures are presented in Millions of Chilean pesos (MCh$) as of September 30, 2007.

Exchange rates considered in the preparation of this document are:-Ch$/US$ : 511.44-Ch$/UF : 19,178.94

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• Third Quarter and Nine Months 2007 Financial Results• Products• Final Remarks

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Income Statement

Q3Q2 Q3 ∆Q (ThUS$)

GROSS OPERATING RESULTS 36.362 41.897 5.535 81.920Interest and adjustments, net (1) 32.196 39.872 7.676 77.960Fees, net 5.574 5.777 203 11.296Gain (loss) trading act. & FX trans, net (2) 1.740 (862) (2.602) (1.685)Other operating income, net (3) (37) 478 515 935External sales force expenses (3.111) (3.368) (257) (6.585)

OPERATING EXPENSES (17.732) (18.958) (1.226) (37.068)PROVISIONS AND WRITE-OFFS, GROSS (8.243) (8.658) (415) (16.929)RECOVERED LOAN WRITE-OFFS 2.106 2.058 (48) 4.024INCOME FROM INVESTMENTS IN COMPANIES 2.115 2.614 499 5.111

BUSINESS RESULTS 14.608 18.953 4.345 37.058NON-OPERATING RESULTS (4) (469) (582) (113) (1.138)

INCOME BEFORE INCOME TAXES 14.139 18.371 4.232 35.920INCOME TAXES (2.044) (2.679) (635) (5.238)

NET INCOME 12.095 15.692 3.597 30.682

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Income Statement

Sep-07 2006 (5) 2007 ∆ (ThUS$)

GROSS OPERATING RESULTS 87.389 107.568 20.179 210.324Interest and adjustments, net (1) 81.980 100.361 18.381 196.232Fees, net 14.121 16.498 2.377 32.258Gain (loss) trading act. & FX trans, net (2) 542 127 (415) 248Other operating income, net (3) (523) 256 779 501External sales force expenses (8.730) (9.674) (944) (18.915)

OPERATING EXPENSES (46.359) (54.164) (7.805) (105.905)PROVISIONS AND WRITE-OFFS, GROSS (17.653) (25.010) (7.357) (48.901)RECOVERED LOAN WRITE-OFFS 7.241 6.060 (1.181) 11.849INCOME FROM INVESTMENTS IN COMPANIES 5.467 6.768 1.301 13.233

BUSINESS RESULTS 36.085 41.222 5.137 80.600NON-OPERATING RESULTS (4) (588) (1.402) (814) (2.741)

INCOME BEFORE INCOME TAXES 35.497 39.820 4.323 77.859INCOME TAXES (4.780) (5.619) (839) (10.987)

NET INCOME 30.717 34.201 3.484 66.872

As of September 30,

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Fees Income

Products Sep-06 (5) Sep-07 ∆Checking, Line of Credit, Overdraft 6.218 6.340 122 Insurance 4.127 5.108 981 Credit Cards 2.300 3.962 1.662 Flat Fees 1.056 1.028 (28)Contingent Loans 984 1.050 66 Banlínea 396 1.001 605 Cash Management 480 746 266 Prepaid Loans 683 743 60 Other 342 (38) (380)CC Admin Expenses (2.466) (3.442) (976)Total 14.121 16.498 2.377

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Income Statement

Sep-07 2006 (5) 2007 ∆ (ThUS$)

GROSS OPERATING RESULTS 87.389 107.568 20.179 210.324Interest and adjustments, net (1) 81.980 100.361 18.381 196.232Fees, net 14.121 16.498 2.377 32.258Gain (loss) trading act. & FX trans, net (2) 542 127 (415) 248Other operating income, net (3) (523) 256 779 501External sales force expenses (8.730) (9.674) (944) (18.915)

OPERATING EXPENSES (46.359) (54.164) (7.805) (105.905)PROVISIONS AND WRITE-OFFS, GROSS (17.653) (25.010) (7.357) (48.901)RECOVERED LOAN WRITE-OFFS 7.241 6.060 (1.181) 11.849INCOME FROM INVESTMENTS IN COMPANIES 5.467 6.768 1.301 13.233

BUSINESS RESULTS 36.085 41.222 5.137 80.600NON-OPERATING RESULTS (4) (588) (1.402) (814) (2.741)

INCOME BEFORE INCOME TAXES 35.497 39.820 4.323 77.859INCOME TAXES (4.780) (5.619) (839) (10.987)

NET INCOME 30.717 34.201 3.484 66.872

As of September 30,

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Operating Expenses

Sep-06 (5) Sep-07 ∆Fixed Remunerations 19.086 21.292 2.206Variable Remunerations 2.728 3.312 584Others Remuneraciones 5.962 6.825 863Marketing 2.805 4.765 1.960Rent 1.482 2.457 975Services 3.962 3.958 (4)Operational 1.021 1.497 476Dep, Amort and Write-off 4.093 4.265 172Total 46.359 54.164 7.805

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Income Statement

Sep-07 2006 (5) 2007 ∆ (ThUS$)

GROSS OPERATING RESULTS 87.389 107.568 20.179 210.324Interest and adjustments, net (1) 81.980 100.361 18.381 196.232Fees, net 14.121 16.498 2.377 32.258Gain (loss) trading act. & FX trans, net (2) 542 127 (415) 248Other operating income, net (3) (523) 256 779 501External sales force expenses (8.730) (9.674) (944) (18.915)

OPERATING EXPENSES (46.359) (54.164) (7.805) (105.905)PROVISIONS AND WRITE-OFFS, GROSS (17.653) (25.010) (7.357) (48.901)RECOVERED LOAN WRITE-OFFS 7.241 6.060 (1.181) 11.849INCOME FROM INVESTMENTS IN COMPANIES 5.467 6.768 1.301 13.233

BUSINESS RESULTS 36.085 41.222 5.137 80.600NON-OPERATING RESULTS (4) (588) (1.402) (814) (2.741)

INCOME BEFORE INCOME TAXES 35.497 39.820 4.323 77.859INCOME TAXES (4.780) (5.619) (839) (10.987)

NET INCOME 30.717 34.201 3.484 66.872

As of September 30,

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Income from Subsidiaries

Sep-06 (5) Sep-07 ∆Insurance Brokerage 2.131 3.067 936 Mutual Funds 1.458 1.902 444 Securities Brokerage 1.683 1.464 (219) Financial Advisory Services (21) 195 216 Total 5.251 6.628 1.377

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Loans

Sep-072006 (5) 2007 ∆ (ThUS$)

Commercial Banking 2,498,353 2,812,383 314,030 5,498,950 Commercial Loans (6) 1,881,667 2,207,889 326,222 4,317,005

Foreign Trade Loans 324,613 290,667 (33,946) 568,331Lease Contracts & Factored Receivables 292,073 313,827 21,754 613,615

Retail Banking 747,864 962,198 214,334 1,881,351Consumer Loans (6) 427,303 493,498 66,195 964,919Housing Mortgages 320,561 468,700 148,139 916,432

Past Due Loans 23,317 28,146 4,829 55,033Total, net of interbank 3,269,534 3,802,727 533,193 7,435,334

Demand Deposits, net of clearing 230,255 295,313 65,058 577,415Time Deposits 1,639,796 2,086,799 447,003 4,080,242

As of September 30,

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• Third Quarter and Nine Months 2007 Financial Results• Products• Final Remarks

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Retail Checking Accounts

0

0,5

1,0

1,5

2,0

2,5

3,0

50,

65,

06 07 06 07Stock(Th #)

06 07Market Share (7)

(%)Acc. Sales

(Th #)

bp

7,8

11,2

42,9%

46,2

54,8

18,6%

10

3,0 2,9

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No of Checking Accounts and Balances

Corporate Division Sep-06 Sep-07 Var. (%) Industry (8)

Average Balance (MCh$) 94.856 107.563 13,4% 3.591.319 Number of Clients (#) 9.044 9.080 0,4% Number of Accounts (#) 9.975 10.053 0,8% 278.753 Ave. Bal. per Account (MCh$) 9,51 10,70 12,5% 12,88

Retail Division Sep-06 Sep-07 Var. (%) IndustryAverage Balance (MCh$) 47.895 58.239 21,6% 2.083.842 Number of Clients (#) 45.587 54.092 18,7% Number of Accounts (#) 46.202 54.789 18,6% 1.835.169 Ave. Bal. per Account (MCh$) 1,04 1,06 2,5% 1,14

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0

0,5

1,0

1,5

2,0

2,5

3,0

50,

65,

Consumer Loan Sales

06 07Loan Stock

(BCh$)

06 07Market Share

(%)

bp

06 07Acc. Sales

(BCh$)

137,9149,8

8,6%

358,3

423,5

18,2%

6,4 6,6

20

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1616

Housing Mortgage Loan Sales

0

0,5

1,0

1,5

2,0

2,5

50,

65,

06 07Loan Stock

(M U.F.)

bp

06 07Mk. Share

(%)

06 07Acc. Sales (Th U.F.)

6,7

10,4

55,0%

16,0

24,4 52,6%

3,0

3,7

70

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0

0,5

1,0

1,5

2,0

2,5

3,0

65,

Credit Card Sales

bp

06 07Card Stock

(Th #)

06 07Mk. Share

(%)

06 07Acc. Sales

(Th #)

48,9

81,6

67,1%

154,9

216,5

39,8%

3,6

4,6

100

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Credit Cards

Sep-06 Sep-07 ∆ ∆ IndustryActivityPurchases (Th U.F.) 3.013 4.471 48,4% 16,1%Purchases + Advances (Th U.F.) 3.631 5.269 45,1% 13,7%

Market Share Accumulated Purchases 3,60% 4,60% 1,00%Monthly Purchases 3,94% 4,71% 0,77%

Credit in Cards (MCh$) 28.807 43.329 50,4%Cards (#) 154.881 216.455 39,8% 13,7%Purchases / Cards (U.F.) 20,6 22,8 10,7% 2,6%

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Loan Portfolio Growth – TTM (9)

InstitutionTotal Growth

Commercial Growth

Retail Growth

Total Mkt. Share

Mkt. Share

VariationSantander 7,5% 4,3% 12,5% 21,2% (1,4%)Chile 14,9% 13,9% 17,6% 18,0% 0,1%BCI 17,1% 16,5% 18,9% 12,4% 0,3%BBVA 20,9% 26,1% 10,8% 8,3% 0,5%Corp Banca 16,4% 12,7% 29,1% 6,4% 0,2%Desarrollo 16,4% 15,2% 21,0% 4,0% 0,1%Security 12,2% 8,9% 46,8% 3,0% (0,1%)Scotiabank 20,5% 30,3% 7,3% 2,5% 0,1%Industry 14,3% 14,1% 14,7%

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2020

• Third Quarter and Nine Months 2007 Financial Results• Products• Final Remarks

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New Corporate Image

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Definitions(1) Includes fees from loans in the form of letters of credit and price level restatement.

(2) Includes adjustments on operations indexed to foreign currency variations.

(3) Includes loss on sale of assets received in lieu of payment, gain on sale of leased assets and unrealized gains and losses of UF-Peso forward contracts.

(4) Includes gain on sale of assets received in lieu of payment, goodwill amortization and collection expenses.

(5) 2006 figures have been price-level restated.

(6) Includes overdraft.

(7) Retail checking accounts market share as of August 2006 and 2007.

(8) Industry figures are as of August 2007. Corporate average balance does not include Banco Estado.

(9) As of September 30, 2007.