ITCB - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. And welcome to the Itaú Corpbanca Second Quarter 2022 Financial Results Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. to call like CFO. to now will turn over the the I

may You begin.

Gabriel Amado de Moura

is CEO call. Moura, I everyone, Gabriel Hello, this the that is don't Rodrigo for on the think company. the

problems I we think are some that connecting. having

So we'll start here.

in discuss over results progress quarter we our we start I a and risk results on you today. second as please presentation, for pages efficiency. We meets performance are materially thank in one into that information, our presentation call first quarter the our nonrecurring statement the like analyze better conference perspectives. that, to you call. believe 'XX to cost to results and would XX in the for as to different you our our on management, our model discussion quarter And manner and income of second present on criteria our this strategy, remarks this performance, adjust apply to financial would risk conference in can you managerial our With differ the like for that We'd actual as income of refer do you we that included how our reflects draw and thank for commercial from our XXXX. management may to mainly and remind So discussed managerial update your highlights This by in well us and details. financial joining which is remind second the internally. presenting our you report segregating credit on financial form our in results. Please And like this presentation. how we what events, joining is for us we quarter include XXXX, the our also further We to analysis could will our financial model forward-looking give same measure, attention presenting our which disclose management, view based statement. information clearer to these

So if can our on four. start we slide

of will more partnering our marketplace offers sell projects in The housing tucked part products that moderate alliance Housing to or as TocToc currently research interrelated our marketplace XXXX As up we TocToc in well are customers X our estate rent will rent in had properties cross with online allow visits market Ecosystem. that integrate as acquisitions, publishes services, properties into for marketplace the complementing products. provides more XXX,XXX strategy, us us more than This financial XXXX. that now during information, real help in million It than appraisal spaces advertising sale Chile.

We offering XXXX in have of credit. an bank value mortgage total we with have clients pre-approved which initial a

to better will in giant year. slide will a a access process add We our our the investments experience, integrated Bank, experience. is more assets a and Itaú clients of for proposition as the the our comprehensive a Switzerland. to banking including locally, by by Along a our platform, banks with through in as have under advisory well financial value possibility will scale international services boutique than backed tripling XX best and alternatives, MCC Management to six, supported mortgage to Over of of The for Private also with Itaú to have part we our Miami clients. in our in create invest strategy accounts, internationally, enhancing effectively America. we we have broad Wealth functionalities of our the acquired deliver banking launched also private business, network for advice, bank specialists, investment management investment marketplace private multidisciplinary private our in years the bankers On range and team MCC, our largest the as Through via of the service each by capabilities, LatAm best time experience. opening offer housing customers access integration have of

need Itaú Customer launching our culture the will just which of eight, second bank the we If our new for Chilean the Moving we of behaviors that while demonstrate we build as that the of Y continue leasing. becoming have six CorpBanca, mindsets and we which in growing lasting believe building the bank on loans celebrate the growing consumers over fastest as credit future. slideXX. result move fastest the itubers progress external factory elements emphasizing present culture, With in areas share. long we centricity with to values this orientation. and of transformation We rankings fastest for present the the mortgages, upon market, that We with new XX loans growth last can months, the were we in past bank to values continue culture, make the were and towards - and collaboration core complete cards and Comex our ethics to and growing we of new culture. diversity, focus, simultaneously export the to on such that the slide and the now orientation, such instalment we

growing state. experience, of to in environmental both by growth the on remaining to in advantages XX, managing the customer ESG continue XXXX will as Chile waste. in that upon commitment and us socio-environmental operations with as XXXX, reduce we has by while quarters [ph] On coming area carbon managing pricing, competitive in in our slide our increasing allowed efforts. selective including very water be e building impacts fastest energy, between our well, reductions XX% risk of strive bank the our our significant opportunities of digitalization and differentiation, in to product paper level Over the supporting footprint clients operations, total - At our ESG and the terms operational their

will start this the the we force We implementation become semester, financial have recommendations. also task XX supporters related disclosure. of climate their of for In

a as us an For well as climate change is challenge. opportunity,

our us own our transition granting been sustainability same climate sustainable loans, clients green related towards which ambitions. or them pursue supporting time the linkage to growth, at loans We actively have either allow

leading of Finally, I best asked part reflecting Investor ESG analysis the our bank. efforts, the have I leadership would long Relations our of ESG Relations financial her planning dimension and the Labbé, Claudia become these of Claudia to [ph] agenda Officer mention all for time wish will in new our the years Investment function González and over Juan that the efforts. to for importance the under all thank we role, our on lead contributions like

quarter for we XX, Now of XXXX. slide moving financial to forward second where highlights present our the

very XXX.X result income grew Ch$ than XXX% up Ch$ book. as well Consolidated half which pandemic the reached at Columbia, very year this consolidated XX.X% been well When by consolidated related was it's even Chile return quarter insurance the close net services tangible billion tables. by equity results, We high Chile benefit in growing return XX.X pension sorry almost primarily grew impacted higher Chile profitability withdraws, equity basis in some our as Nonetheless, the and of fees, we first account like Chile. impacted inflation, in second obviously look by basis especially growth in we is tangible a billion. that at by in Consolidated both over to Chile XX.X%, have positively reached conditions, consolidated in cost grew in income and XX.X%, period. ratio by semister, points, in Chile, The more year. year-over-year, well Colombia, support due the a very low XX.X%, on advisory higher increased over funding from while XXX.X interest a on expenses as current and to major consolidated currency more equity to XXX% financial Net Our Chile credit year-over-year interest that on period, most I'm as reaching all first by volumes, [ph] by and to boosted banks from especially XX.X%. year. XX clients our financial which up by in order experienced resulting income return XX increased We by strong - on margin In macroeconomic as this improved overdraft the XX.X% on of measures. we history. in Consolidated higher in with fee brokerage tangible efficiency in rates. in as no- Consolidated highest strong have had XX.X% base, volume a

from However, underlying in that performance not the of lead - distraction business. our

that In addition growth a performance, financial clearly in have our positioning progress we reflected as made bank. improvements our to NPS rankings, our

against our succeeded more While the to tangible we equity have on same we the of likely which in not maintain level difficult most expect quarters, of perspective, are clearly a debt market from profitability over closing the return be coming do peers. to

is XX.X% that margins in Chile clients by and year-over-year to with financial in We XX. Moving quarter. see the slide X.X% grew our

on average we that the our year financial due to As credit growth, the margins of way the in first and of relative in and the higher see was with the we financial by quarter market period. as drivers the main the above On are the quarter, can moving of as liability capital rates. this inflation spread billion positively bottom Ch$ interest well to graph slide one in second portfolio improvement XX, the margins very see on the improvements impacted the page, XX.X

the to high market where XX.X% fees, it On to historical XX, average, - declines expect which some as grew back with year-over-year. was We more slide at the is financial point margins line the focus inflation in our coming quarters. with over on fall

insurance, cash management. our seen especially good most fee business based have of and growth, brokerage based We lines, -

as markets, in management, by been page. As of hand product exception The asset which graphs well by volatile we substitution. has side highlight impacted one as negatively on has the right the the been

Here also credit corresponds on X.X% indicators which of quarter billion, risk impacted in billion the Ch$XX Chile. relate. slide additional of second that in credit loan portfolio, see our a in was Cost our Ch$ main provisions to by average XX.X XX, we

basis cases the ASP seeing the levels Looking specific quarter. effect at withdraws do trends. the The not few movement Overall, of in form in that economy. we market are a remain back and stable liquidity are see portfolio a increase overall in were and as measures the total going the other NPLs our NPLs explained by shows NPLs credit XX point more commercial mortgage credits within consumer to reflect mostly in we the off - normal NPLs

this which a non-interest as X.X% increase a expense as in needed model for quarter, anticipated down provisioning has the our considering current why up. is increase COVID additional that of our of uncertainty went billion level as show quarter-over-quarter, in and to provisions Nonetheless, we quarter, we high future. XX, we the effect, On XX continue Ch$ NPLs had slide NPL ratio come be environment, Our by show remained shows increase on and months, an personal so that side with in macroeconomic the step quarter IT of in flat, of XX% internalize technology, to associated our if as continue right the that was the by first our effects the due has provision mainly page basically of for The in we over headcount compensation even employees as to personnel expense, in invest technology for vacation seasonal we variable the graph last XX almost roles. increase key spot. result

as and improve. In of than continues our trends, much efficiency at to costs inflation continue two page, we can graphs terms the of ratio see to the the grow our bottom efficiency overall less

Colombia. Let's move on to slide XX

well reductions can headcount As cost see Colombia XX of credit also and the and that a major months. the improvements implementing as in months, program we positive XX in as are over over NPLs long we quality declining ratio. the know, in in been significant you component, a Credit efficiency you has the have the and efficiency last made branches transformation has which last that as

capital of as more have on On as subside. the of devaluation, increasing the volatility well line coming expect when we interest despite we the our major slide rates. in has resilient quarters, XX, interest inflation, market the rising see that We transformation rates period, ratio which show currency environment in remained a and volatility significant high bottom to over especially the in markets impact currently

recap that messages have key More that importantly, you for I on presentation. we slide the can XX, think on we this

on had on tangible we return strong XX.X% consolidated half of of return a first the and XX.X% and First, year, equity equity Chile. tangible with a

our over on at against level will we have that While level not of on closed competitors. our the think equity quarters, the that return tangible do - remain the coming gap most we

We provisions on increase the demonstrated of on high continue additional quarter. current going high inflation in managing to decision the proactively to this in cycle our interest by focus the effects potential forward, business rates as

continue we terms also transformation advance improving opportunity we and conclude that the in risks, towards might on finally, of bank returns. in gladly to point our selective progress in third any Chile, Colombia while we for we you growing had that, you becoming today in And that and The is the growth making fastest presentation our efficiency. are by With questions have. will that take remain we

Operator

do Thank we phone from you. [Operator the have And coming go from Mollin ahead. over Please Scotiabank. a Instructions] question Jason

Jason Mollin

on comments transformation what you on and in follow looking your in Maybe Congratulations Gabriel. we in you're would expecting should to be And what Hello, showing can impact in the for the you're when that talk how up long the wanted year. quarter. reduction Chile. efficiency pretty in term relative could to about last particular there future I Colombia, on the headcount looks impressive the branches over strong profitability.

Gabriel Amado de Moura

Jason. you for question, thank your Sure,

a As you for has challenging been well us. always know, Colombia

changed started this the different have year for we the have Colombia plan, I in based dynamics bank. have can major that businesses, strategy in very If the have the we mainly in we analysis and see that that Colombia things expect. last can they three profitability that divide new on We for we on bank

against trading we and its – in have profitable that equity. is instance, treasury business cost Colombia a of very For our

that are think we I active.

be I that cycles. through we'll managing that think different well

Corpbanca hopes investors there doing And – are and Colombia. position leveraging in institutional in for way, that can with have regionally. multinationals we of increasing we do the positions things Colombia, other in that have our also high staying many countries, So we that a penetration [ph] Itaú

in that from the Colombia The second also, from in cost have businesses, that's something our nowadays, is comes strong that had and the Colombia more than equity in it business which we our is business in we business. ODBA to to Colombia. have received that have of the wholesale [ph] used [indiscernible] we It

are So views strong and corporate middle positioned. flow we well structuring positions. of finance. of in to in used banking, We're we terms Most having clients, investment market, the the I project Colombia, the also are of think that in discussions in

I So in that operation wholesale Colombia. have we a think good

go which day, main I everything in had money business in think our Colombia, that that at always retail and the compound end lose of so was challenge on the we the has the we equity that, of far with that business in X% between very two X%, a in to to well, profitable. us going has in led and being return return a one on that terms business Colombia, are of in way

client the on for digitalization the for the in and structure from saw been we've cost developing so now into footprints So and we And from market focus of the on in the from efficient for have, clear footprint us analysis that that also network, Colombia a the that that bank have. currently current on had not retail based branches that That's to years. in And network digitalization a very change for became Colombia base branch would strategy have to Colombia, that means, capabilities as the the base What everything that the do Colombia the And and order we that that but to that tried the the have, of growth the in forth. market. that bank in that that towards Brazil. in couple that we the in on we capabilities as so we - we to we leveraging develop the we strategy. be with in of patient terms the now, either changes, future grow. growing changes, and distribution capabilities branches, in need in it process all leveraging Colombian current to based the had have Colombia decision business was why Colombia based the is we we in We the new

expect our by at business this in in be We breakeven to retail Colombia year.

last as have. our started so able we with to converge we that cost in And are that so is And the next we we We think, been discussing - equity ambitions year. of have this far, Colombia. this to you

the we by that wholesale on to we footprint volume able future. more the results. feasible years, need we assets think and change and few And capabilities for in everything with business have. that have we a that next I the we developing equity. will look now. that right in That of doing are to and in into shorter equating, a the increasing this we always term converge we on a strategy had, in you in the we the But strategy the It - digital cost that would more on to of have do the So mentioned. seems vision treasury say I was results have the we be grow delivering take we are also terms think at it's retail in I that obtaining to of latency that more do, if feasible that been we've in that's very And why numbers, disciplined the some the

Jason Mollin

That's second perhaps in experience regulatory for has outlook super change shareholders a Maybe the and question your that Itaú given perspective Corpbanca Brazil. controlling the on helpful. [ph]

core as you the comments open like have seeing that sounds on new could Thanks. and how banking law. Do a any it So rules bankers, regulations, well potential FinTech future market as on we're opportunities. Itaú impact

Gabriel Amado de Moura

in think Colombia. incumbent in I an on Especially Chile, great. not the that's because market I'm

terms Colombia, Chile, efficient. they Chile to the a banking, mean, are that, positive markets, the consumers I that and efficient market on positive So at increase fluid market more choices, for competitivity, helps moreover the happened, is market. in and change and us very be in markets, more markets Brazil, I day have it's than for of more to are everything the that of for generates end think

it will for that And changes a don't turn ourselves we in way the in position and how completely chooses. being that in that at But our do look for think markets. clients leading the I of we take increase Android numbers, the market great. bank look that's satisfactions we in customer or store, us we in the the around a the think market, lead we other ourselves if the store you same way think NPS So applications, I saw positioned have the our a a I have within have, take we And the iOS that that in helps.

we Chile. banks within the the are in discussions of association So of part

that. participating We are with

a the we at we are discussions we or that this If did, look part have you that associations take of I we talking been that other there. think have, change

We are of embracing the I that nature nature one each of the do you doing need everyone. a doing adaptive in for is - adapt that its way to great the it, opportunity business new culture, think it's models, But new that things.

to what we've It's two last that's that. in So bank adapting the doing been the years.

the become you that, in a adapt flip traditional side harder. culture, to or it'd On terms to you're do want don't I bank things, of think if that how

Jason Mollin

timing rules law? any on of the the implementation the of FinTech banking of comments or Gabriel, passing open

Gabriel Amado de Moura

specific for I that. that. have know don't for timeline I No, strong any have that agenda regulators a

I think terms that. in timeline very, responsive very banks together But working I with have don't been FinTech. specifically, a have that the of for

Jason Mollin

much for very comments. you Thank your

Gabriel Amado de Moura

Sure.

Operator

webcast coming We from Abra [ph] Martinez from the a have question

Unidentified Analyst

and thank in and Thank regulated you. for real about give Please, exposition sector, and bank color the Hi, estate? also can you more health the presentation. you

Gabriel Amado de Moura

is - In [ph] the to specific Hi, Sure. that the specifically I Abra. business think Czapes Chile. your question in health business,

We low participation very this. have a on

on real have think Czapes or about so larger the yes, significant any estate, major real we that make within its don't estate. On I portfolio to our market. exposure a comment exposition And that

progress we own years. way of But to guarantees real with guarantee can And through terms through what that mean, estate the we during portfolios from been talking that loan think have exposures, pandemic, successful value is bank levels look more our rates think many But we more estate some pandemic. managing true with we're do. that commercial and to we of quite to managing past terms are our the projects. after cycle. look the that's a of also for managing your costs have the comfortable guarantees more seeing like I the And a on business, cycle. terms part with market a on we and set comfortable it's we managing And the mean, cycles. the But businesses how of for real in they in take obtain all are levels. And in up impact those so we've that the I mean, deals, been We part activity side, challenging developments. when we the in operate with prices we also the interest over the effects lot we've clients, challenging are the that's some in have that's of profitability we of structure see the I how rates, at of sure. that there's few they products I developers we we But interest how been for the the in it's what of expected. did the the mortgage on side the sectors. the cycle. refraining of risk have, made we that other the that now on provisioned some of way the increasing I cycle, at prices But and we in of beginning

Operator

coming San coming question [ph] webcast the from And another we Albos have Diego from

Unidentified Analyst

the Hi, in how coming will of Chile, you. and for loan be end and behavior affected will which growth XXXX the be ahead, seeing think year more segments? the challenging scenario you especially Thank the do

Gabriel Amado de Moura

Hi, you. thank

ratios the are risk the management the aware the intern very in we cycle. are on growing bank. mentioned the time, I presentation, focused same as At during I with think that - we of

have, I continue manage are And grow that, say, in a But how to our able to did we that grow that think well. provisions, you in if holding want I take So you risk more example, we that we take I you and we business. are be a X and would very seeing. at were the doing the business aware the we of can give if we that consumer we factors business will look we past, We very but there. the commercial grow, returns other how also we where getting we in NPLs look are to our on our credit. years, specific are in an that in side,

I probably that also of bank think that been much sense in in XX we've make terms us. the the others. terms fourth don’t And things last to of largest compared the there and months, is are reason for in that returns, for that risk

So question same and we about exposures in of also the the that have. factors way Abram of

thing. it's growth, of terms In the same

I think through but proposition of with has enabled us opportunities that, we of portfolio risk are grow, a and digital to service, to value us there grow for our are lots well-behaved pursuing that a management.

that's think part a the of key process. I

right? it and in proposition do strong becomes of difficult credit, value credit I credit portfolio process a of If the [ph] then it day, relationships manage action, If not a credit. at to within the end cycle. mean, - is you have the is also of universal it terms don't further only,

that deals to grow is that we ongoing same that value we a a credit. very because with growing more us discussion, is proposition are mortgages in making growing. make been we what we because we enable Comex offering. in clients than sure have commercial not have. factoring of only structuring just sure the that of In comments the on credit available of consumer, strong that principality we've to the not offering side, want management our have Guarantees cash have we that we are But relationship making the clients and within clients that is of have that So coming sure a

we we way how think the important the in business. everything in and sustainable very grow we've the market been see, we that’s are more are then on I do again, But of managing to No, to going we that bank. are not that. that's

We it challenging are we it since I you management numbers, we'll cycle do. last analysis you shows. look But in in be from very know, having the you and with we if deep more the active, are discussions as as year. a we think at risk very that that And take is have predicted the

Operator

you. Thank

We have from George [ph] Morrow the another question over coming webcast

Unidentified Analyst

us and quarters? formation was around in here NPL billion color what XXX on give Can Ch$ in this more Thank quarter to upcoming expect happened Chile you you. what CLP. the very high

Gabriel Amado de Moura

Sure.

I think this that in is the is you need from what and discussions, discussion What from formation to NPL consumer right? commercial. also the separate segments, mortgages what different is George

in look take a that It's if you we let's on about and at NPLs So have talk businesses stable, our the commercial quite first mortgages. been mortgages.

this the the cases we formation is look we and we NPLs the specific for been guarantees aligned If well we saw it that they need you it much I The levels. past back have very pandemic of portfolio discussing a and to have that here to consumer, portfolio, that. that bank take provisions are that view to that we - have think provisions at to will previously quarter, growing levels those the more in that we some with our on additional the of going have the commercial the of things them

So I the portfolio, trending don't levels think of we that [indiscernible] are the that quarter expect. things you have some NPLs in

look to more know history, how bit take is a you part. you the the bank have And set concentration the at our our if of that for with have on you little how I the portfolio this have that given volatility wholesale we on is. think up portfolio

cost specifically for because on have do of forward, the NPL any of list a have specific guidance But Going volatility. guidance do we not credit. we

at numbers, been we If consistent we've guidance you the that with take I have. a the look that think

that NPLs additional more we've the are moving all it's our MD&A at look volatile take of downgrades the of we will provisions of right? portfolios distinction what so a you process the which if So that a that mortgage our because that before little think diversified do specific been the of is bit - is have do between in provision the which portfolio to in guidance, at day, that we wouldn't provisions I very process. you continue this all way strength the NPLs And little at in balance the they in on we losses. sheet end - as our there But see end of a the We model did And rating, the specifically the making. the the upside in portfolio drive we your the to well I expected forward. bit you before NPLs, see in and are some of concentrated a the wholesale, consumer that opportunity in the view, in

that I think it. that's we the way manage

Operator

over Thank JPMorgan. the from Yuri now go coming from you. the Please have Fernandes ahead. phone We question

Yuri Fernandes

Hi, cases things. you few Gabriel. real and much. a the the like acceleration the estate above maybe is like, which have asset what question XXXX, on explored one if guess we and the explosion had, on And are Because if an you rate. now I economy. One, sourcing? I those corporate we this you concern formation. on quick very drove expect? in segment which what quality. comment But [indiscernible] - And I Chile, seeing the wholesale the should follow-up Thank can had are two you the here the know, neutral guess sectors you like, we versus looking to are

environment? your first not for off, guidance on Are see So cost this this year bank I all or of the going is concerned you at concerned what how Thank forward? kind of really? on But the risk. should understood you. we

Gabriel Amado de Moura

No.

it that call campaign them I they sector it, that’s the what I'm the information. at without can for way regulations banks for from is can. in that are Chile within Cinemaz interesting information of and about first, we [indiscernible] note the do about unit new a talking that think I a lot think take and an public We theme also the There the [ph] all you in you and report repo information exposure, the look exposures you bank, sectors in

they business that, banks, we when are exposure. exposure at in either say sector peers. not of I that and to you bank you, agro tell based I a industry different, lower are our terms can a In on And the look compared have our would other take

major higher [Technical say, day, but e-commerce would course, is I they the a have everyone are of on that. At by limited end not We infrastructure, expose differences of Difficulty] in, the

Yuri Fernandes

here. I you lost the part your of Gabriel. guess, on answer Hello, second I

Operator

Yes, the line was disconnected. I'm sorry about that.

Okay.

is the all concludes of and for now today. you you. this disconnect. you conference call, So connecting we This all may time today. for Thank have Thank today's

Banco Itau Chile (ITCLY) 2 Aug 222022 Q2 Earnings call transcript