Itaú Corpbanca : 2020 Impairment Test Conference Call and Webcast

Conference Call and Webcast

2020 Impairment Test

Gabriel Moura

Chief Executive Officer

Claudia Labbé

Head of Investor Relations

July 10th, 2020

Accounting impact at LD1

In accordance to IFRS 3, business combinations are accounted for using the

•  In Legal Day 1, Corpbanca was valued at market prices as of March/16

•  The difference between the market price and the net asset value was recognized in the balance sheet as intangible assets due to business combination and goodwill, increasing equity value

Accounting impact post-LD1

•  Intangible assets (e.g., trademark, customer relationships) are amortized

•  Intangibles and goodwill are tested for impairment

Impairment losses are recognized in the income statement

USD Bi

Goodwill Intangibles Activos Netos

Activos NetosValor de MercadoValor de Patrimonio

Goodwill and intangibles constituted at share price of CLP 5.80 with no impact on earnings, liquidity and

Basel III capital

2.4

4.2

Pre-COVIDPost-COVID

the economic outlook has changed, delaying RoTE convergence

•  Lower GDP over time due to sharp slowdown and uncertain recovery of economic activity

•  Lower interest rates

•  Slower credit portfolio growth and higher cost of credit

•  Slower fee revenue growth

Assets

Impairment

Impact on Earnings

CLP Bi

USD Bi

CLP mn

USD mn

%

CLP mn

USD mn

Goodwill

940.8

1.14

448,273

545.5

Chile

Intangibles from BC

97.5

Sub total Chile

1,038.3

0.12 1.26

0 448,273

0.0

47.6% 0.0%

(448,273)

(545.5)

0

0.0

545.5

(448,273)

(545.5)

Colombia

Goodwill

242.2

Intangibles from BC

113.9

Sub total Colombia

356.1

0.29 0.14 0.43

242,223 113,910 356,133

294.7

138.6

100.0% 100.0%

(246,663)

(300.1)

(69,088)

(84.1)

433.3

(315,751)

(384.2)

Consolidated

Goodwill

1,183.0

Intangibles from BC

211.4

Total

1,394.4

1.44 0.26 1.70

690,496

840.2

113,910 804,406

138.6

58.9% 53.3%

(694,936)

(845.6)

(69,088)

(84.1)

978.8

(764,024)

(929.7)