ITCB - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Itau Corpbanca First Quarter 2021 Financial Results Conference Call. At this time, all attendees are in listen-only mode. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions] Now, I would like to welcome Ms. Claudia Labbé. yours. is floor the Ma'am,

Claudia Labbé

Thank you. call joining conference you morning. our First Thank for Results. for Quarter our Good XXXX Financial

With financial efficiency. perspectives. management, conference to and clearer be communicating report risk let any on also recent to draw the market forward-looking form risk of and management risk performance question-and-answer further our like that as a and to differ me XX We other macroeconomic include different comment and of in as from financial proceeding, Please conditions, on of our materially in information could actual our to factors. as Mr. results of remarks anticipated your evolution, that this and attention result through forward-looking performance performance, Before may mention analysis I first would Mr. included we we CFO. Afterwards, quarter model, are this financial a our how this will discuss XXXX disclose results and based Moura will strategic you cost discussion call This our today credit these which information better Rodrigo Couto, refer reflects CEO; for segregating results Mr. give apply and financial measure, statement. well managerial to managerial and Moura, a which events presentation, by adjust in criteria X we our available for in believe income commercial and Gabriel for analyze we events. model will details. us Pages our session. is comment management non-recurring view managerial

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from and We both the phone will take console. the questions

pleasure will we call turn the my to to the questions For now read Gabriel. and It over your is verbally. answer latter,

Gabriel Moura

on COVID-XX, parts thank joining strategy. the update update our business for our an in Thank everyone, XXXX results First has Today's presentation three Hello, our you, quarter Earnings -- Call. and us XXXX for Claudia. on you plan an and Quarter transformation first

into the vaccination moving new during of while to X; levels. gained Chile its quarter the of XXXX, attention first from So, record process straight infections Slide international surged speed

international mobility measures, terms strict U.S. XXX There's restrictions which the affected habitants. were has for while a closed. of are rolled vaccination the reintroduced the of almost both the and been the the result, back. of borders per process a were outpacing world, UK As one quarantine now being administered in fastest in Chile's population and doses XX%

million dose As people of XX vaccine in XX, least year-old XX% received X.X received the had Chile one over and at both. April of have of people their

economic We this pave expected in vaccination the a months. for reopening to the way speedy effort significant coming

the of well achieving GDP. lending, act loans, reactivation solution billion conditional CLPXXX please are responding Central program. there the impulse fronts assess Slide to billion of X in sustained $XX our of their XX% But U.S., launched the We strong has facility as sanitary the to of as CIC latest FOGAPE hindered [ph], fund and our Congress the guaranteed X. share. move over achiever building continue months. also also Chile expansion and the than The quarantine we X% significant Nevertheless, policies credit the impact to announced strong credit guaranteed from effect long-term a are in and through SMEs, to both can the which consequences Chile, both vaccination, for term, the of external the better momentum. activity on has The that six over measures move billion Chilean its of have a recovery benefits support FOGAPE. granted demonstrated the was economic the the a acted to the also to of this economic market almost that's of overall pandemic decisively of In future. participation macro in are cycle. and $X the Prior activity. approved and to stretch authorities uses consistent to short year. fund to the being Collectively, be may to Chilean If of the third XX.X%, with on in X. activity significant is growth Bank terms temporarily once Chilean economic economic third a amounting participation carryover authorities latest in withdraw. part our approved the let's Legislators trade, to difficult swiftly medium the of on positive the more crisis, increasing turn the fronts. The So, rebound on We pension two-year commitment higher FOGAPE government lockdown by from COVID out measures expansion with economic the an Slide progress the

to see following X.X% decline forecast GDP tilted see our Moreover, as output wide. the horizon We the to remain is last upside. the target continue We inflation X.X% too over in gap to still expanding close risks XXXX, year. the X%

XXXX last of first first Lastly, we expect cycle quarter the hike quarter of to the the come of XXXX previously. the rate into from

the of in after meeting X.X% basis In the the of rates the ends. terms to shrinking of expect last more we would year growth by reopening probably year Bank assess XXXX. points increase Central high we the bounce see by environment this than back in with lead before XXX economy Colombia, we trade an rate of [ph] the hikes of currently in economy While only XXXX, this expect to X% year

year. remainder inflation We this year expectations this inflation for also GDP a broadly compared year. year that this support X.X% and X.X% close well-behaved X.X%. there's GDP [ph] remain a with of gap output expect to track is of large at stable last along X.XX% wide at stable account a We believe low rates current still deficit with on and of Inflation the

early hikes conditions tilt global rate if keep risks financial toward the However, tightening.

for share moving the let's the performed talk some of these Now about we for Slide XXXX. of forward, bank highlights the XXXX. months first three quarter X, how On

net income and net XX.X%. which and tangible consolidated was in history. on XX.X% quarterly equity income return for billion Our equity billion our was tangible CLPXX is Chilean on was return in highest the Consolidated Chile, operation our CLPXX.X

all provisions corporate revenues Cost in by Our to growth benign cost portfolios, financial Expense declining was boosted SME subdued quite were of reinforced when relative in clients. X.X% with last Chile in an with for the market. XX.X across margins reduction resulting we've quarter-on-quarter. remained our credit quarter

of first believe the significant going first maintained will forward, will up quarter profitability While a this in for we do profitability the we not believe be in this levels strong that achieved sets year. rebound that quarter

show for our loan in first XXXX. we by quarter, X, Slide to mid-single the on digit portfolio is broadly which loan of X.X% guidance that grew our growth in-line Moving with

and the X.X% Our in in aiming in-line grew with our for returns [ph]. retail of retail in while guidance being portfolio X% terms also selective and strategy on wholesale of wholesale, growth focusing

the XXXX. quarter, margins achieve Our the for On margins student mainly of we the enabled X, improve decreased of X.X% loan the seasonal strategy first portfolio fourth returns our to has in that Chile wholesale see Slide in us clients sale due to higher in effect with financial significantly quarter and of capital. on to therefore

fourth consumer XXXX of with margins explains loans, of below, graphic see clients change which deposits. reduction of mainly the XXXX, by positive the quarter loan to portfolio a our the credit as margins volumes. on as offset portfolio in first the as pandemic, by the average quarter as of versus in commercial the mix, a contributions the well due higher as [ph], On we Those were contraction change effect a on result in well

lower [ph] to inflation. market CLPXX.X quarter, we the since margins about a than CLPXXX billion pesos lower U.S. year. trading with XX, despite fourth our our quarter billion decreasing businesses, [ph], that the of exposure inflation Slide of to third a in billion reduction high the CLPXX of exposure was across quarter were first in in last our XX% banking that on Despite Revenues and Moving XXXX. the higher financial showed the a

on which of our XX, to portfolio. main Chile. risk can credit first in in credit the see Slide corresponds we of quarter loan average X.X% billion, Cost CLPXX.X Here our indicators was

than quite mid-XXXX receive levels. below benign expected. the risk that NPLs credit the our pre-pandemic credits across relief In case that case total is In and overall end coverage payment not payment repayment a did retail it any retail already portfolios. performing pre-social that The wholesale, seeing NPLs in are consumer that any corporate That are of unrest. portfolio did are mostly but significant on P&L. did better [ph] commercial and adequately credits one trends. NPL We therefore all in now not provisioned, receive did you've was The are impact not it have by explained seen rolling to one do we so have NPLs, reflect and movements NPL, relief

As provisions despite our a very in result coverage historical we decrease of established in quarter. terms the ratio the this NPL in high remains shown XXXX,

our of Our the NPL which allow be provisioning to through loss is with cycle. the of high consistent maintaining expected model, quarter-over-quarter coverage while evolution ahead us cycle, levels protection

maintained five by improved points end was below we their of July year, we was year-over-year, variable increasing much the first as non-interest quarter, which inflation control, between percentage in credit, from towards XXXX, reversal for our On by quarter we both of ratio costs decreasing provisions. guidance for low have cost very the the of We the efficiency for X% cost far despite XX, perspective the As the of X.X% while affected training for and growth are under range that show resulted XXXX. fact X.X%. as a quarter-over-quarter, expenses inflation the which which mainly compensation guidance our positively remained provided

government were with XX, tangible at quarter-over-quarter. historically slide measures. of boosted by strong points lower can at had as costs. fully-loaded XX on year-over-year both a of impact in liquidity positive levels moving we basis Now loan NSFR LCR Slide capital equity. as we positive see Slide set to a high that basis a remains X% operation ratio significantly that very quarter-on-quarter support points rebound well with credit see and XX, growth, one [ph] trends XX part in and well On and return X.X% liquidity revenues managerial and reaching increased our quarter, normalization on show cost over by Operating XX, Columbia our since In the we provisions XXXX,

capital our capital in our expect efficiency steadily going to continue improve profitability ratios efforts. We we as recovers forward and advance our to

the I acquisition address As discussing we Corpbanca last highest going ratios [indiscernible]. are upcoming as well in ruling at best to additional Itau our Considering of call, how in interest forward. of the levels, Colombia, the capitalization as internally mentioned where

available. information becomes We make as will the disclosures it relevant of

and period the our on recap XX-month will progress I adaptation presentation. part of the on to our a March have following were I management far. tested. the slides, Let's the evolution share we before XX, in facing never move and that next capabilities made the scenario in XXXX, will so Slide When On seen last

Our robust the run challenging solid management governance us circumstances. and allow to for those under continue risk to bank

acted taking needed September of we promptly bank of customers to time organize operations same on for the time developing solutions the From focused and and XXXX that crisis. that. remote the customers people, we a our appropriate at to our while focus bank centricity, we results. can and please for our period. was and we In the prepare fully we the access It in simplicity, sustainable onwards, As of begin a crisis. the ensure had to a to on we working our approach plan We bank, XX. quickly shift digitization in move during based of model an on the our to agile the months focus developed achieving what developed pillars to future, the customer If disruption, leveraging our learned strategic building discipline follow, the bank that care and transformation Slide

to of we one, agility. overall, of the this necessary well of of which are: lead that a like our our the elements most set our key strategy, made operations, introduce management structure. right division, transformation organizational business new which and two, The transformation development relevant we We our process. first changes to with have plan; sharing executive customer to of charge important was right and is centricity in most change the to in Before digital committee structure talent decentralization some created structural the advances the this our would and reinforce innovative ensure as skill to the I as

up Rappi, in have finance, as I by Itaú I successfully transformation has Unibanco different are already this working to HR stream of been plan, new our now digital at growth the mentioning relevant progress over services implement Neves methodology us Wholesale leading page. him programs new working we Jorge and in him integrating innovative this a office and wholesale and strategy. individuals in the transformation describing companies In addition ourselves of with to reintroduce and person Head in process, have which led coordinate a transformation industry he replacing top new and you like transformation Unibanco, has with as Head and of several into in financial in After It us and with executives structural us him with Development bank. in will now, of player to over announced a On Operations. gave on disruptive strategic which the Slide the Christian structure to Jorge Sebastián, are on regions. the Division. records the business brought changes, has a through ecosystem, our years transformation also customer Slide comment been been Itaú technology each our the supported we the experience us financial deployed the as their would XX, the office dedicated value made in to overall which closely strong bring and this ecosystem. starting created can Previously, while lead to best how IT, we Banking, for providing are assess with in the The alliance since gave large we made boost other base large transformation April; on months, both new the as we Head adding Digital enable deliver as is services that of as and to as the to experience assess recently [ph] last seek lot following Romero America, implement banks we Latin will we September. a Novis we for lastly, new the of Both Business our to companies On few with few XX, setting We oversee Tauber, work bios introduce XX. leaders in in track partnership, heads the to Slide who the Sebastián Head ways Chile. and Through IT, who teams. well our to hole were mini of worth Eduardo to -- see Eduardo

Chile, banking to as that, clear satisfied on left the quarter expect general We to third you on the hand launch said of XX. NPS Having as journey can year are have the of in first industry we our we year. Slide product we the regard of the side at our In market. all experience of the not us over for as low made partnerships this the last see transformation, opportunity customer a progress of significant disrupt

new the progress huge major made in have we three ranked now with Chile front, stores. app, digital number is one our the in which On app with our

As of you them opening we fourth and payments adaption later, have XXXX, launched both in options digital wallet allows smartwatches, in recall months quarter and we smartphones, that our as an safer, Three might this for increasing clients. Mastercard a functionality. making easier as well in Visa seen the

organization checking [ph] investment account, few a invested digital innovative platform weeks and On which present XX, the ago, easy onboarding. with [indiscernible]. we mass XXX% hassle we to As platform our access model free slide open quick a a launched enables our through

all moving are full with scale areas. towards an model across working with We agile integration

sprints; three model and operation we is objectives broken through teams, decision-making teams. on technology integrating The our key excellence first multidisciplinary the for us simplify step business in months recognized towards migration journey and therefore agile year, been join empowered into to structure an business this organization have also down allow areas. pursuing this and This accelerate

we XXXX in Banking, our Peruvian the by Best Finance just IFR Best Awards and role the emission Asset fixed example, sustainable Morningstar to step Management Global is by Wrapping journey For achieving on the strong, of the the and Year the income up, the the in started Finance by first government. Provider which of Deal for results. Trade

fully that be this, have. With transformation mode we in to questions full much for you conscious and aspirations. we that performance part take you today gladly that medium to our done are any is remains We and term are to presentation why would conclude the achieve have we long might we

Operator

now Jason will session. Scotiabank. question-and-answer gentlemen, Ladies begin first of is and line you. [Operator the of the question Instructions] from Mollin Thank we Your

is line now Your open.

Jason Mollin

question Rodrigo, Thanks is opportunity overall just Gabriel, Claudia. first profitability. ask Hello. questions, My the for to on

You of and normalize I'm for trading trading. strong the the and guidance have kind highlighted and of provisions we some risk just the the we trying get to if trend a in cost normalize year. sense full

wanted And think for at agreement exclusive I to that me related equity, about But some agreement? thinking Rappi, your some then think that XX% there, even I'm get that showing is to of I probably normalize, half pretty be is would impressive. around kind we to the right about terms. a second when with to talked we XX% given of this return rate or level, you is the you're my almost below. I tax on it rest an slightly year. your question if sense just And seems

you which you. I work? think may there's bit can it a some talk to how going be, on Thank but little period if through that's

Gabriel Moura

Sure. Thank you question, for your Jason.

question, to the on first Chile XX% are in don't on in I that think we basis. a going have your are a sustainable return in operation equity we mentioned tangible you As saying that

terms as year. what the we might in financial quarter cost of was we market, it margins for very thought our with below think have this well good of I credit a with

for lot potential we in that see As asset a the do Chile. mentioned, I we of have previously

I the term was that think credit around long something we guidance X.X%. had of that for cost

as As given cost as number of that you our credit, remember, a sustainable mix number usual we we always discuss business portfolio. saw was The X.X%. this of

Corpbanca fact, numbers between As XXXX of an average you're X.X%. Chile take and a have to XXXX, the for you Itaú separate a think matter basis of that if I on going

that it's new. So nothing

for cycle. credit Of didn't expect course, we this

the have. if tangible I will market, on return year we normalize the said and would that with with quite financial we say I'm we So, the this encounter lower optimistic a that, Having margins equity. normalize

We are seeing good results.

when terms In portfolio. mentioned have to have We I challenges tangible wholesale return achievable I equity portfolio in spreads increase here operation we Chile, from in the and XX% were we the still is think as of on about some the see spreads, the we potential what on that of able something I that I the projections on before, consumer for have. think

don't that to I'm that for the returns bank. better we for hoping a specific we for been basis is you this year, sustainable plan for on numbers have for return the we So, better that I the ones hope but approaching equity have. for XX% tangible year we on and any return this that the have the mentioned, believe the guidance XX%

For CEO joint Rappi, we venture have Simón this with have we negotiated the for six globally who is for months them. Borrero, Rappi with that with

both services the selling for through that the the Rappi for of have Rappi -- distribution all as the platform. the that has the exclusivity side well as Rappi of financial clients on We companies client Chile, over the in application it are million has has, company providers that one for over services of

doing quite a experience We distribution take Unibanco services. the It's We of our model. in also of the retailers. achieving used Itaú to were have partnerships successful We exclusivity in with financial that. for new

with Chile this We with model are Rappi. developing

the us model clients have a So, with well apply from good Rappi. they That's the more incorporating company its that that to developing think digital and for into Latin we the ambition learn has been all have are what as business. there of that attraction wildly for for learn to flow America, successful as new in model for at bank, from learn a I our we least them opportunities

Jason Mollin

Thank you very much.

Gabriel Moura

Sure.

Operator

from is Sebastian Corp question next Credit Your Capital. from

open. now is line Your

Sebastián Gallego

you for questions several Claudia today. the the of presentation. Gabriel, everyone, have -- and team rest I the Rodrigo. Hello, Thank

on is The you will are for question do one first market? The the to be available. your here that the have the profitability? be That during expect mentioned capital. and it information disclosures bank you is needs potential The what new the recovery of key considering the when may Gabriel, disclosed that presentation initial thoughts the question. initial have will when

The second overall is question profitability. regarding

a tangible a Going back and talk but on to Chile, fail the question between to how to Colombia. consolidated, in about talk sustainable XX% you picture of lot about will continue you the to Jason. Because equity talk XX% return be profitability about in

minor including view on are a specific that And question basis the be, what here will wondering from if you for looking during charge year? at new what's you're at we on much. And saw So the strategic impairment also we expand would impairments question third the I'm trends expect if in quarter fiscal my that should the that challenges could recent Thank the be impairment on consolidated you Colombia, considering and and front? throughout a the you a profitability? point managerial outlook of the very result made

Gabriel Moura

thank for Sure, Sebastian. your you question,

on first portfolio unrest past, of first the XXX% prior that cost [ph] with and was had of take dividend Chile social doing affected the in that and year. that we plan we of all the So XXXX last call. X pandemic course I payout the saw the of previous mostly to as that think in as as the due credit entailed. in in to adjustments all retaining a mentioned payment that we of well the to And look the a did Basel dividend When that have the XXXX, at capital with plan our we effects we generating the one I capital convergence by

bank plan we have time in capital to discussion that with you share specific the the now how with ability will So, information do right through generate with is in we and of terms structure have and the you. the But taking controlling has think shareholder regarding share this Board to also the I change. of years, those and went that information our eventual And an the that retain year any that will capital a to you that tell amounts new taking time we have [ph] during not capitalization time. we the have converge and bank. and now to through can this We of with I

a Your was I a overall Colombia, the answer In you at dilution gave previous we same Colombia, Chile, will in basically dilution certain Colombia the or calls. I of profitability. second that, as around for things question out about [ph], XX that's take When percentage coming four Jason. had look three than When is instance, challenging. to that I as more potential be at the of XX X% mentioned points you think something take saw, in are I coming lower a look from

possible for X% its the show think again, quarter, I in not things our I market the equity that more because around to Colombian business think especially XX%. we strategy think of it's first as different cost had were then also we return the Colombia in an pandemic. complicated it because become on from which Chile. in And affected has I been go-to to still Colombia, converge of challenging

specific discussing Colombia. for our have going that I this business the think well. Colombia far, that options is as value this have that as the are so shareholders I going dilute what in but X% think some a increase return I of And that than in the now think this with will for you best more that lower are we're we to segments to in we Colombia X% and focusing the bank year. creation more don't we're equity probably we see than to year share answer

of if For you. the Rodrigo? would impact can discuss it with the good Rodrigo this impairment, be idea think I a

Rodrigo Couto

Sebastián. Hello, Yes.

two intangible So, we treatment in every just generated our recurring business that have results. of quarter. the is through One have a the things combinations. we That's amortization

was is no know or I my for there. goodwill, nothing So impairment there concerned intangibles of there's And business new combinations. of that

business Okay? assets which So or that technology combinations. was, billion impairment CLPX.X have we some related related was was the only writing the the to of thing like there motivation is did to system's consolidation. The

and residual that, remember, build assets, larger you impairments have As and technology going some fixed small might assets. expect the then we December continuously, we our throughout might in are impairment assets do major we We impairment review also some review any of our these movements said we forward. a not Having intangible year.

Sebastián Gallego

Thank the very clear. Very you answers. for much

Operator

Instructions] from the last line question Your Friedman [Operator from George Citibank. is of

is line open. Your now

Jorg Friedman

Hello. Good make everyone. you opportunity for questions. the to morning, Thank

a I'd more the expectations front. to bit color try your to So, get on like about revenue

makes even might quarter given it might think that something us call else. quarter, be be, on more I think I Because Gabriel if unsustainable last coming trends it bit of though I get was and how was profitability to was also Gabriel, to these what terms that everybody it about sense or the very results? support rates year. associated clear strong just ALM this a the in it already what how ALM a remind to expect are from comments noticed the of your for But of get numbers levels there, you could, with strong,

Thank could through what fee increase has could that the question. the for the So, understanding the is throughout system? guidance the question, expecting you generation, we fee you also for about levels with activity you other but income? ideas would if some to as place the a first competitors help revenue your the expect us banking [ph] could sustained week year released banks expected if takes of market, trends these reopening a what XX% of on the X% last of also focusing And increases. income trend us and be are NII second in very that helpful One much. Is this give

Gabriel Moura

George. your for question, Thank Sure. you

be revenues, few this shy I we're that that that We than this little key we shy, semester little a next on maintain two the We still over think because think bit first the Through I of before. revenue front. generation saw on to least on when term at consumer mentioned year, especially things. of on will long to mortgages have years, that of portfolio. at I the think see are that I still projections take results a the I volumes the look the mainly that levels some resilience the a year, going bit be in order

It As higher of was latency you we year-over-year. has affected resilient by more downturn. and is in that are being market saw economic increasing X% terms a

-- on fallen if other hand, we you a think rates we the -- it years the how on and the was creation the that we especially On on we of quite in. for interest have part of making were to the past mentioned, resilience able wholesale value that were the are increasing the spreads as are I we take very the that you credits few focused had at look sure portfolio good,

or decreasing to effects than the of the whole, a it also spreads of we consumer able terms mix, are market, on portfolio the if side. in are you retail the pandemic. decreasing was a We course, as the as all of expand portfolio less but affected, we that But maintain as the the have at take the look truly

year, we the now the had compared growing but last mentioned, that for as XXXX. it fees do we at from it's in the well that If have have, with to to And fees, as numbers comment X% take look more goes industry. fall you think then feasible, the that I we think the base that a has starting by you I something

terms the not credits Chile, You case which charge in insurance are -- concession fees for like to have are our service more the linked have, to remember especially credit of in fees the Chile, side, in Brazil, we the terms the on products we the that that of on more wholesale. on that in fees structuring

cost control. So, seeing that of the year have. have. as But the on second better in But a fees the this the we and revenues in see on we is mentioned a reasonable very main the the concessions. normalization do you think over we rebound cost that terms I see drivers and year that strong for credit of numbers credit a see activity I for are that are I growing semester, profitability the we that

for will that main think I the year, be the bank. this For highlight

we you well doing in treasury. As saw, are

clients in are instance We also for our and trading Chile the FX for for bank, derivatives. for first

is activity we we numbers. I you'll of should for So, or those then that the in bottom, cost I strong do is of But that are bottom of clients something strong than we better or for not range we converging range with if of bottom than a and the cost feel that the that credit, even again, to credit bank. see the at terms that think see the the treasury the perhaps provide the it's sustainable guidance don't of the a lower driver.

a on see several I I around something for cost credit usual do as of is bank the business situation X.X%. times before, As mentioned what a as

question, if George. that So, cost next I answered the strong will [ph] converging on that your years, to we converge I revenue efficiency steadily think delay the before. know growing for mentioned don't what and I few

Jorg Friedman

again and more Thank you questioned once than [ph] really color. Gabriel. very just NII market. base answered with Actually, even could much, on if what But the the appreciate was you touch I you

the per So, understand you. what Thank the should are billion monitor results? we for expect to quarter? really already these year, mean over should levels CLPXX trends something was reversion to a which the last Whether we of coming the quarters the around

Gabriel Moura

see the would But maintaining quarter. of I financial But margins volumes the next reactivation do think are then good we have that again, results probably to tough. sustainably returns the our lower the fronts. see going we see think it treasury, other What that don't on in pattern I going we for can I of Yes. repeat with forward. do I profitability, be market, level

margins think that takes -- fully-compensate to I able that a good the then bit profitability I guarantee a of we at current deposits account our I take a were on SMEs, mentioned, the that lower again, deposits. of we forward on XX% that put financial return year-over-year, a retail, look the FOGAPE not our level portfolio if we will rose with the have for throughout that the have with financial good But that almost that loans margins forward, we time. we with we with we deposits clients and think So, the as market year little put

on are they to they then return. trends, market-dominant semester good. first I going what of is we see going are semester on more is the And So, are the see are those quite to second client-dominated again, we operational But that more year think a return. what the a

better we take they the in the look more quite I sustainable a you for results treasury and dwell like second that it's the last at good are if because have Even few years, sustainable. think [ph] one I though time.

returns So, of I the the it's are the guidance. that of within we mid-single this growth level to digits that have talked about be concentrated to on for the think year, terms second two semester the about portfolio probably talking we of in more going of that achieve

If put we that the you you talking take in guidance it arrive you our will and forward, are probably about. return

Jorg Friedman

you very Thank clear. Super perfect. much. That's

Gabriel Moura

George. Thank you,

Operator

There are go Please, ahead. Claudia. further no questions,

Claudia Labbé

Hello.

answer console that We now. have we two questions will the from

guidance first the So 'Hi, net and Florencia give year question us Gabriel. says, coming you some the LarrainVial. Stefani in coming this Could about income years?' evolution Florencia the for from

Gabriel Moura

have something think it Okay, gives opportunity that clear. similar for I that of something operation, it needed we to to percent, through the not adjustments we Chilean I at I think think do plus believe to bank. in on do the that the for fully of the that reasonable future potential the that that value don't the we discussion consolidated do is we I saying the the the the look of portfolio, it's sustainable something a bank. answers. previous that the went all few we making the the say same represent that But results even for the In that think XX way, given it's are years, we it's me have taking on last return

it's contract that between context important also because this take at take mentioned, that balance to we return It's are the operation. the it's that look of to we the can past. somehow in have the a equity. having XX% quarter. of to both it's as see of results But still think important and operation, we Seeing the think Colombia the big results we sustainable the we XX% I this things, easy So, a look at true for Chilean tangible on result have clearly to always I a sold the picture,

equity I before, Chile. on equity X% also to to we As the the behind have Colombia overall XX% on years around we tangible Colombian around dilution, least is that a in than And assets think possible what operation two of we we return assign Colombia. cost the is converge be I the mentioned think still that the operation which the on the XX%, that Colombian given less for less than because to especially it's will did at picture. of operation

I important before were a the look credit. the mainly did cycle think was see through cost the the the to during way for bank in it's when pandemic the optimistic we taking same adjustments necessary at the the that all of we that future on pandemic, and

expectation the right reasonable think have I now. think it's to have we possible same that and impossible it's I

process possible this and for do to those strong So, I are that results that the that I base bank through asset, that future. to will the to we're the give do and have throughout feel seeing feel we feel I going we maintain grow it's achieve strong transformation a levels that continue do

Claudia Labbé

Gabriel. you, Thank

you Felipe income [ph] the regarding We have of us long presentation. NIM [ph] the operation? cause question and risk give needs, today net one Torres says, Colombian 'Thanks regarding last for Corp. RBC coming some growth, Could guidance from Felipe

Gabriel Moura

not do the for that operation with guidance for bank volatility the we to We for because numbers Felipe. mentioned Colombian we're hard given the us come up the operation before. It's as I some that in Having Hi, experiencing still disclose work the stabilizing Columbia few all Colombia, past was of Chile, the we said generating volatility the operation and that, results. same effects done the the throughout saw all is also that that are years think market. the that has

look the in than So, our we the than did giving in that much less losses inflation years able before last grow the When more have, it's we as terms of all well. market. were credit we stable a I less that at expenses, that the expenses take to year provisions and

those are So, of credit comments for also for two cost and expenses.

that volatility is main the income. that we have think I for

that during of again, think a and we had in the commercial in that pandemic. would as moment this I perform we that is favor think the that like. works in relationship between terms our performance I opaque the I think didn't return Then risk more portfolio that

commercial Colombia XX% in banks we grow portfolio didn't XXXX. in growing we So, some as the saw

portfolios I higher that our think in we also had of out and some thought that went went favor we risk. that

adjust banking construct we its now operational value in the over able of have balance So, we and sheet, its to were to this. of terms, terms

discuss like out work better-tackle we Colombia we for we have. in more some was we plan As focus the we to being based the had, a a about that's our as the on I Probably operation segments. have. very Having something that that is strategy said the thinking mentioned, we how scale And future can are that this. we bank strategy it's which given we in specific think implement, that, few would months a to in a difficult to that all that segments universal strategy

Claudia Labbé

our was question, last Gabriel. This

final you So, make I think that remarks. can

Gabriel Moura

the so for that much questions you have. for Thank participation Brilliant. your and Fantastic. you

looking available Claudia bank. all very with are changes with Rodrigo, always, you. always that and am with I, and for year the As the also the that positive doing forward have I'm we we

chapter of think much. keep I a beginning as we a we updated and that you move our you history very it's new along. in will Thank

Operator

attending. concludes And that, conference Thank you today's for with this call.

stand You may please Presenters, disconnect. by. now

Banco Itau Chile (ITCLY) 3 May 212021 Q1 Earnings call transcript