Itaú Corpbanca : Q3 2020 Earnings Release MD&A Report

Management

Discussion & Analysis

3Q20

ir.itau.cl

/Itaú Chile

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@itauchile

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Table of Contents

Management Discussion

Executive Summary	7
Income Statement and Balance Sheet Analysis	17

& Analysis
	Managerial results - Breakdown by country	19
Page 5
	Managerial results - Breakdown for Chile	21
		Managerial results - Breakdown for Colombia	31
		Balance Sheet	41
		Risk and Capital Management	47
		Additional Information	49
		Report of Independent Auditors	54

Complete

Financial

Statements

Accesshere

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Itaú Corpbanca

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Management

Discussion &

Analysis

Management Discussion & Analysis

This report is based on Itaú CorpBanca reviewed financial statements for 3Q20, 2Q20 and 3Q19 prepared in accordance with the Compendium of Accounting Standards issued by the Commission for the Financial Market (Comisión para el Mercado Financiero, or "CMF") pursuant to Chilean Generally Accepted Accounting Principles (Chilean GAAP), which conform with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) to the extent that there are not specific instructions or regulations to the contrary issued by the CMF.

Solely for the convenience of the reader, U.S. dollar amounts (US$) in this report have been translated from Chilean nominal peso (Ch$) at our own exchange rate as of September 30, 2020 of Ch$786.96 per U.S. dollar. Industry data contained herein has been obtained from the information provided either by the CMF or the Colombian Superintendency of Finance (Superintendencia Financiera de Colombia, or SF).

Certain figures included in this Quarterly Report for the three months ended September 30, 2020 and 2019, for the three months ended June 30, 2020 and as of for the nine-month periods ended September 30, 2020 and 2019 have been rounded for ease of presentation. Percentage figures included in this Quarterly Report have in all cases not been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this Quarterly Report may vary slightly from those obtained by performing the same calculations using the figures in our consolidated financial statements and our managerial information. Certain other amounts that appear in this Quarterly Report may similarly not sum due to rounding.

As used in this MD&A Report, the term "billion" means one thousand million (1,000,000,000) and the term "trillion" means one million million (1,000,000,000,000).

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Management Discussion & Analysis

Executive Summary

Itaú Corpbanca Financial Information

The financial information included in this Management Discussion & Analysis Report ("MD&A Report") is based in our managerial model that we adjust for

non-recurring events and for additional reclassifications of P&L lines in order to provide a better understanding of our performance. Please refer to pages 9, 10 and 11 of this report for further details on our Management Model.

Financial Highlights

We present below selected consolidated managerial financial information and operating information of Itaú Corpbanca for the three months ended September 30, 2020 and 2019, for the three months ended June 30, 2020 and as of the nine-month periods ended September 30, 2020 and 2019.

In Ch$ million (except where indicated), end of period	3Q20	2Q20	3Q19	9M20	9M19
Results	Recurring Net Income			(10,057)	20,968	42,538	44,708	137,119
Operating Revenues 1		250,697	278,947	275,907	782,592	836,838
	Managerial Financial Margin			213,890	240,027	229,561	669,504	691,575
	Recurring Return on Tangible Avg. assets (RoTAA) 2 3	-0.1%	0.2%	0.5%	0.2%	0.6%
	Recurring Return on Tangible Avg. equity (RoTAE) 2 4			-2.1%	4.3%	8.1%	3.0%	9.0%
	Recurring Return on Avg. assets (RoAA) 2	-0.1%	0.2%	0.5%	0.2%	0.6%
Performance	Recurring Return on Avg. equity (RoAE) 2 5	-1.6%	2.7%	5.0%	2.0%	5.4%
Risk Index (Loan loss allowances / Total loans)	3.3%	3.4%	3.0%	3.3%	3.0%
	Non-performing Loans Ratio 90 days overdue (NPL) - Total	2.1%	2.4%	2.2%	2.1%	2.2%
	Non-performing Loans Ratio 90 days overdue (NPL) - Chile	1.8%	2.0%	1.8%	1.8%	1.8%
	Non-performing Loans Ratio 90 days overdue (NPL) - Colombia	3.5%	4.0%	3.5%	3.5%	3.5%
	Coverage Ratio (Loan Losses/NPL 90 days overdue) - Total	154.9%	141.4%	139.1%	154.9%	139.1%
	Efficiency Ratio (Non-interest expenses / Operating revenues)	64.5%	56.8%	56.7%	60.2%	55.9%
	Risk-Adjusted Efficiency Ratio (RAER) 6		102.0%	90.0%	80.0%	93.4%	77.8%
Sheet	Total Assets				36,731,915	38,969,389	32,476,801
Gross Total Credit Portfolio				23,402,288	24,288,823	22,499,473
Total Deposits				17,754,334	18,235,232	15,409,500
Balance
Loan Portfolio / Total Deposits			131.81%	133.20%	146.01%
	Shareholders Equity		2,496,130	2,530,802	3,427,114
	Tangible Equity 4	1,936,315	1,966,960	2,114,239
	Headcount 7			8,446	8,878	8,955
		Chile				5,331	5,581	5,538
		Colombia				3,115	3,297	3,417
Other	Branches 8	295	315	347
	Chile				184	188	194
		Colombia				111	127	153
	ATM - Automated Teller Machines		531	550	628
		Chile				406	408	458
		Colombia				125	142	170

Notes: (1) Operating revenues = Managerial financial Margin + Commissions and fees. (2) Annualized figures when appropriate. (3) Total tangible assets = Total assets excluding goodwill and intangibles from business combination. (4) Tangible equity = Shareholders equity - goodwill - intangibles from business combination - related deferred tax liabilities; for further details see page 47 of this report.

1. Equity = Shareholders equity. (6) Starting 3Q19 we are adding the cost of credit to the non-interest expenses for the calculation of the risk-adjusted efficiency ratio, instead of deducting it from the operating revenues. Previous quarters have been recalculated for comparison purposes. (7) Headcount for Chile includes employees of our New York branch and since 1Q18 also from our RepOffice in Lima and also in Madrid until 2Q19; and headcount for Colombia includes employees of Itaú (Panamá). (8) Branches for Chile include one branch in New York and branches for Colombia include one

office in Panama.

Itaú Corpbanca

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