Business & Finance
Business and Finance
Business and Finance
Tue, March 1, 2011
Mon, February 28, 2011 CorpBanca Announces Fourth Quarter 2010 Financial Results and Conference Call on Tuesday, March 1st, 2011
SANTIAGO, CHILE--(Marketwire - February 28, 2011) - CORPBANCA (
Financial Highlights
Net income for 2010 reached Ch$ 119,043 million, an increase of 40% when compared to 2009.
The increase of net income in 2010 is mainly explained by:
-- 16% Increase in net interest revenue -- 35% Increase in fees and income from services -- 26% decrease in provision for loan losses
CorpBanca ended 2010 with a total loans market share of 7.3%, increasing 3 bps compared to previous year, and continuing to be the fourth major private bank in Chile.
Mario Chamorro, CEO
"2010 was an impressive year for CorpBanca. We increased our net income by 40%, which is 10% higher than the industry average. We continued increasing our total loans, especially mortgage loans which grew more than 28% in 2010. We have consolidated our wholesale model business and made necessary structural changes to our retail banking that will allow us to continue growing in the next years. This explains the decision of our shareholders to place trust in the bank's management and our potential growth by deciding to increase the bank's capital in 2011, issuing new shares.
"We expect that our current strategy in addition to our new capital will help CorpBanca become the leader of the Chilean banking industry."
General Information
Market Share
2006 2007 2008 2009 2010 ----- ----- ----- ----- ----- Total Loans 3,556 4,317 4,944 5,012 5,469 Market Share 6,31% 6,82% 7,04% 7,27% 7,30%
We continued increasing our market share in 2010, although the increase was lower than previous year's.
CorpBanca continues as the fourth private bank in total loans.
Total loans increased 9% in 2010. This is explained by an increase of 6.7% in commercial loans, 28% in mortgage loans, and a decrease of 4.8% in consumer loans.
Net Income (12 months trailing)
Dec-06 Dec-07 Dec-08 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 ------ ------ ------ ------ ------ ------- ------- ------- 39.104 51.049 56.310 85.109 97.391 106.825 118.606 119.043
The bank net income has strongly increased since the beginning of 2009. These results come from designing and implementing strategies that we consider consistent with future growth and earnings.
Our net income for 2010 was Ch$ 119.043 million, an increase of 40% compared to 2009.
The chart shows our 12-month trailing net income evolution.
ROE - ROA
ROE 2006 2007 2008 2009 2010 ---- ---- ---- ---- ---- CorpBanca 9,9 11,8 12,4 18,5 25,0 Industry 18,6 16,2 14,2 16,5 20,7 ROA 2006 2007 2008 2009 2010 ---- ---- ---- ---- ---- CorpBanca 1,07 1,10 0,91 1,33 1,67 Industry 1,26 1,12 0,96 1,20 1,45
Our ROE and ROA have been continuously improving in recent years. We have been ahead of the industry average since last year and we continued that trend in 2010.
In 2010, our ROE reached the highest level in our history, ending this year over 25%. Our ROA shows the same situation.
The success of our corporate wholesale model, improvements in our retail segments, and better macro-economic conditions primarily explain this year's positive figures.
Risk Index
2008 2009 2010 ---- ---- ---- CorpBanca 1,46 1,91 1,95 Industry 1,79 2,43 2,5
Consistent to one of our core strategies, CorpBanca presents one of the lowest risk index (Provision for loan losses/Total loans) in the industry.
Our risk index only increased by 4 basis points; we maintained a low risk portfolio.
Efficiency Index
2008 2009 2010 ----- ----- ----- CorpBanca 46,09 38,96 38,10 Industry 49,87 44,58 45,9
Operational efficiency is also a core component of CorpBanca's strategy. The chart illustrates how our efficiency ratio has been improving in the last 3 years -- we are a leader in the Chilean market.
Our low operational cost is based on a cost control culture that allows the bank to compete in the Chilean market with high profits.
Basel Index
2008 2009 2010 ---- ---- ----- Basel Index 10,8 13,9 13,43 Tier one 9,1 9,5 8,9
In November 2009, we issued subordinated bonds as tier 2 capital in order to increase our index above 13%. In 2010 we continued having a Basel Index over 13%.
The increase of equity that the bank is planning for 2011 will strengthen our capital position and significantly increase our Basel Index.
Branches - ATM - Employees
2006 2007 2008 2009 2010 ----- ----- ----- ----- ----- Branches 92 101 106 107 113 ATM 102 102 205 324 382 Employees 2,389 3,116 3,083 3,311 3,422
In 2010 we increased the number of our high and mid income retail banking branches, while decreasing our branches of Banco Condell.
The total number of ATMs increased by 18% in 2010, mainly due to the installation of ATMs in SMU supermarkets. SMU is the third most important supermarket chain in Chile; the Saieh family are the controlling shareholders.
Our number of employees has increased by 3% in 2010. This follows our strategy of focusing on customer satisfaction and in offering more sophisticated products to our clients without increasing our cost.
Management's Discussion and Analysis
I) Financial Performance Review
For three month Ch$ million period ended For the year ended ------------------------- --------------------------- Sep - 10 Dec - 10 Change 2009 2010 Change Net interest revenue 53,415 55,502 2,087 193,388 224,410 31,022 Fees and Income from services net 15,105 13,883 (1,222) 43,261 58,221 14,960 Treasury Business 18,643 (711) (19,354) 54,198 35,201 (18,997) Other revenue 1,418 5,223 3,805 5,087 8,832 3,745 Total operating revenue 88,581 73,897 (14,684) 295,934 326,664 30,730 Provision for loan losses (14,070) (6,184) 7,886 (68,855) (51,187) 17,668 Operating expenses (33,219) (38,338) (5,119) (126,388) (138,072) (11,684) Income attributable to inv in other comp. - 12 12 445 296 (149) Net Income before taxes 41,329 29,807 (11,552) 101,136 138,678 37,542 Income taxes (5,299) (3,104) 2,195 (16,027) (19,635) (3,608) Net Income 36,030 26,703 (9,327) 85,109 119,043 33,934
Net income
Net income increased by Ch$ 33,934 in 2010. This is mainly explained by an increase in Net Interest Revenues of 16%, an increase in Fees and Income from Services of 35%, a decrease in Provision for Loan Losses of 26%. These growths were offset by a decrease in our Treasury Business of 35% and an increase in Operating Expenses of 10%.
Net interest revenue
Net interest revenues increased by 16% in 2010. This is mainly explained by two reasons. First our total productive assets increase by 10%, while the spread remains similar to 2009. At the same time, we benefited from our financial gap strategy, consistent of a long position in UF denominated assets. In fact, while the UF (according to inflation) varied 2.4% in 2010, during 2009 this change was negative (-2.4%).
Fees and income from services
For three month Ch$ million period ended For the year ended -------------------- -------------------- Sep-10 Dec-10 Change 2009 2010 Change Bank(*) 9,118 7,907 (1,211) 25,129 32,017 6,888 Mutual Fund Management and Securities Brokerage Services 3,287 2,123 (1,164) 8,102 11,080 2,978 Insurance Brokerage 2,055 1,771 (285) 6,860 7,898 1,038 Financial Advisory Services 222 1,574 1,352 1,940 5,587 3,647 Legal Advisory Services 422 509 87 1,230 1,640 410 Total 15,105 13,884 (1,222) 43,261 58,221 14,960 (*) includes consolidation adjustments
Fees and Income from services increased by 35%. This increase is explained by services provided.
The increase of Ch$ 7 billion in fee revenues from banking operations during 2010 was explained by our corporate banking group and high and mid income retail banking group, that increased 21% and 40% respectively The increase of our traditional retail banking is explained by the bank's strategy to focus for higher income clients that usually consume products with higher fees. However this increase was offset by a decrease from Banco Condell (our low income retail banking) of 27%, due to our effort to re-adequate the Banco Condell loan portfolio and pricing strategies.
Fees from securities brokerage services increased by 22% in 2010, due to a significant increase in the number of customers, the launching new services such as Pershing, that allows clients to invest abroad, and other new services focused on corporate needs; in addition, fees from mutual fund management increased by 17%, due to the return of the funds where the fees are proportional to the size of the fund, movements from money market funds to other funds with higher fees, and the creation of new funds.
Our insurance brokerage fees increased by 15% during 2010. This business is primarily associated to our retail operations, especially our mortgage loans, where we offer insurances related to earthquakes or fires. This year our mortgage loans increased in 28%, that explains an important amount of the increase in our insurance brokerage fees.
Our financial advisory services fees increased by Ch$ 3,647 million during 2010. This is explained by the success of our wholesale corporate banking model which allows us to reach a high number of customers and provide to them more sophisticated financial solutions, delivered through our financial advisory services.
Trading and investment
For three month Ch$ million period ended For the year ended ------------------------- ------------------------- Sep-10 Dec-10 Change 2009 2010 Change Trading and investment income: Trading instruments 1,151 1,665 513 2,612 6,855 4,243 Derivatives held-for-trading (17,975) (20,049) (2,074) (26,123) (14,327) 11,796 Available-for-sale investments and other 870 (1,340) (2,210) 27,020 (1,938) (28,958) Total trading and investment income (15,953) (19,724) (3,771) 4,563 (9,409) (13,972) - Net foreign exchange transactions 34,598 19,012 (15,586) 49,635 44,610 (5,025) - Net gains (losses) from treasury business 18,645 (712) (19,356) 54,198 35,201 (18,997)
Total income from our trading and investment business in 2010 decreased by Ch$ 18.9 billion as compared to 2009.
CorpBanca covers through derivatives all its positions in foreign currency to avoid any currency risk, so the final number of foreign exchange transactions will be mainly offset by the number of derivatives held for trading.
Derivatives and financial securities that may provide effective economic hedges for managing risk positions are treated and reported as trading, due to local regulatory restrictions.
Trading and investment income primarily includes results from our securities portfolio for trading purpose (marked-to-market adjustments, gains and losses from sales), gains and losses from our derivative trading portfolio, and gains and losses from securities portfolio available-for-sale.
Net foreign exchange gains and losses include both the results of foreign exchange transactions as well as the recognition of the effect of exchange rate fluctuations on assets and liabilities stated in foreign currencies, and loans and deposits in Chilean pesos indexed to foreign currencies.
The gains or losses from our treasury division are not completely expressed in this part of our statements of income. The other component is included in our net interest margin.
Provision for loan losses
For three month Ch$ million period ended For the year ended ------------------------ ------------------------ Sep-10 Dec-10 Change 2009 2010 Change Commercial, net (7,564) (6,958) 606 (29,238) (27,117) 2,121 Mortgage, net (206) (1,036) (830) (1,861) (3,132) (1,271) Consumer, net (5,965) (6,303) (339) (37,756) (27,638) 10,118 Net charge to income (13,727) (14,472) (745) (68,855) (58,068) 10,787
Our expenses for provision for loan losses during 2010 was Ch$ 58 billion, a decrease of 15.6% as compared to 2009.
Provisions for loan losses decreased despite the increase in total loans due to an improvement in our asset quality. Our mortgage loans had an increase of 28% during 2010, which explains why their provision for loan losses increased. Better economic conditions, lower unemployment and a previous year affected by a global financial crisis are the main factors that explain the decrease in provision for loan losses.
Operating expenses
For three month Ch$ million period ended For the year ended --------------------- ----------------------- Sep-10 Dec-10 Change 2009 2010 Change Personnel salaries expenses 17,643 19,336 1,693 65,733 71,034 5,301 Administrative and other expenses 11,867 11,843 (24) 44,592 46,793 2,201 Depreciation, amortization and impairment 1,796 1,865 69 6,310 7,117 6,486 Other operating expenses 1,913 5,294 3,381 9,753 13,128 3,375 Total operating expenses 33,219 38,338 5,119 126,388 138,072 11,684
Total operating expenses increased by 9.2% in 2010. Personnel salaries increased by 8%, mainly due to an increase in salary payments of 11% and bonus payments of 8%. Our total number of employees increased 3.3% in 2010. Administrative and other expenses increased by 5%, mainly as a result of an increase in leased branches, surveillance cost, and insurance cost. Most of the contracts that the bank has are denominated in UF, which increased 2.4% in 2010, so this also explains the increase in administrative expenses.
The decrease of other operating expenses is explained by a decrease in additional provisions for loan losses.
II) Assets and liabilities
Loan portfolio
Quarterly Annual Ch$ million Dec - 09 Sep - 10 Dec - 10 Change Change --------- --------- --------- -------- -------- Wholesale 3,776,871 4,001,617 4,029,231 27,614 252,360 Commercial 3,193,990 3,398,647 3,421,104 22,457 227,114 Foreign trade 233,477 270,396 260,976 (9,420) 27,499 Leasing and Factoring 349,405 332,574 347,151 14,577 (2,254) Retail 1,234,784 1,345,513 1,439,954 94,441 205,170 Consumer 428,049 406,302 407,315 1,013 (20,734) Housing mortgages 806,735 939,211 1,032,639 93,428 225,904 Total loans 5,011,656 5,347,130 5,469,185 122,055 457,529
Our total loans portfolio increased 9.1% in 2010. The Chilean market increased by 8.7% in the same period.
Our market share increased slightly by 3 bps during the year, going from 7.27% in 2009 to 7.30% in 2010. For corporate and commercial loans, our market share was almost the same, going from 8.85% in 2009 to 8.83% in 2010, thereby corroborating the importance of CorpBanca in the Chilean corporate sector.
Our retail loans increased by 16% in 2010. This is explained by the increase of 28% in mortgage loans, while the system increased by 11.6% during the same period. This increase was offset by a decrease in consumer loans of 4.8% for 2010. This decrease is attributed to our low income consumer division (Banco Condell) that is going through the process of restructuring its portfolio with higher quality loans and concentrating clients with lower risk.
Securities Portfolio
Quarterly Annual Ch$ million Dec-09 Sep-10 Dec-10 Change Change ------- ------- ------- -------- ------- Trading portfolio financials assets 76,156 152,263 197,580 45,317 121,424 Financial investments available-for-sale 737,162 676,159 746,248 70,089 9,086 Financial investments held-to-maturity - - - - Total financial investments 813,318 828,422 943,828 115,406 130,510
Our securities portfolio consists of trading and available-for-sale securities. Trading securities correspond to financial instruments acquired to generate gains from short-term price fluctuations or brokerage margins. Trading instruments are stated at fair value.
Investment instruments are classified in two categories: held-to-maturity investments and instruments available-for-sale. Held-to-maturity investments include only those instruments for which the Bank has the capacity and intent to hold until maturity. Currently, we do not have held-to-maturity investments. All other investment instruments are considered available-for-sale. Investment instruments are initially recognized at cost, which includes transaction costs. Instruments available-for-sale at each subsequent period-end are valued at their fair value according to market prices or based on valuation models. Unrealized gains or losses arising from changes in the fair value are charged or credited to equity accounts.
Funding strategy
Quarterly Annual Ch$ million Dec - 09 Sep - 10 Dec - 10 Change Change --------- --------- --------- -------- -------- Checking accounts 328,078 373,441 405,301 31,860 77,223 Other non-interest bearing deposits 168,191 215,315 206,763 (8,552) 38,572 Time deposits and savings accounts 3,316,045 3,507,104 3,700,454 193,350 384,409 Repurchase agreements 465,514 146,668 189,350 42,682 (276,164) Mortgages bonds 271,430 241,174 226,451 (14,723) 199,308 Banking bonds 410,473 505,285 700,570 195,285 290,097 Subordinated bonds 253,316 254,291 288,414 34,123 35,098 Domestic borrowings 5,309 138,720 66,800 (71,920) 61,491 Foreign borrowings 357,094 474,853 460,552 (14,301) 103,458
Our current funding strategy is to continue focusing on diversification utilizing all sources of funding in accordance with their costs, their availability, and our general asset and liability management strategy. On July 29, 2010, we entered into a U.S.$167.5 million senior unsecured syndicated term loan facility with BNP Paribas, as Administrative Agent, and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank Aktiengesellschaft, Standard Chartered Bank and Wells Fargo Securities, LLC, as Lead Arrangers and Book-Runners. The proceeds of the loan were used mainly to fund our lending activities and for general corporate purposes. On August 1, 2010, we implemented a local bond program for a maximum amount of UF 150 million at any time outstanding. Under the local bond program, we are capable of issuing two types of securities: (i) senior bonds, for a total amount of UF 100 million, divided in 28 series (from AB to AZ and from BA to BC), with a maturity ranging between 3 to 30 years and an interest rate of 3%, and (ii) subordinated bonds, for a total amount of UF 50 million, divided in 16 series (from BD to BS), with a maturity ranging between 20 to 35 years and an interest rate of 4%. For all the series of bonds that could be issued under the local bond program, the amortization of capital will be made in full at maturity. The objective of the local bond program is to structure CorpBanca's future issuances of debt in a way that provides for diverse alternatives of placements in order to efficiently manage its outstanding indebtedness. To date, CorpBanca has not issued bonds under the local bond program. On November 3, 2010, we issued US$178.1 million in Reg S notes in the international market.
Shareholders' Equity
We are the 4th largest private bank in Chile, based on our shareholders' equity of Ch$ 535 billion and loans of Ch$ 5,469 billion as of December 31, 2010. We have 226,909,291 thousand shares outstanding and a market capitalization of Ch$ 1,972 billion (based on a share price of Ch$ 8.69 pesos per share) as of December 31, 2010.
III) Other Related Information
Increase of CorpBanca Equity
The extraordinary shareholders meeting held on January 27, 2011, decided to approve the proposal of the Board to make a capital increase which will occur through the issuance of 40,042,815,984 shares for payment, representing 15% of the total new equity, to be subscribed and paid in the price, terms and other conditions determined by the Board.
The Board adopted the agreement in question in order to strengthen the plan for growth and investment of the Bank and take advantage of future commercial opportunities.
CorpBanca's Conference Call on Fourth quarter 2010 Results on Tuesday, March 1, 2011
You are invited to participate in CorpBanca's (NYSE: BCA, Santiago: CORPBANCA) conference call to discuss the Fourth quarter 2010 Results and respond to investor questions.
Time: 12:00 am (Santiago, Chile) 10:00 am EST (US) 15:00 pm (UK) Call Numbers: U.S.A. participants please dial 1866 819 7111 Outside the US please dial +44 1452 542 301 UK participants please dial 0800 953 0329 Chairperson: John Paul Fischer, Head of Investor Relations You should dial in 10 minutes prior to the commencement of the call.
For your convenience, a 24 hour instant replay facility will be available, following the completion of the conference call, until Monday, March 7, 2011.
Slides and audio webcast:
There will also be a live -- and then archived -- webcast of the conference call with PowerPoint slides through the internet accessible through the website of Capital Link at [ www.capitallink.com ]. Please click on the button "FOURTH QUARTER 2010 FINANCIAL RESULTS WEBCAST." The webcast will also be available on the company's website at [ www.corpbanca.cl ]. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
To listen to the replay, please call: Instant Replay Number U.S.A.: 1866 247 4222 Access Code: 2339939# Instant Replay Number OTHER: +44 1452 550 000 Access Code: 2339939# Instant Replay Number U.K.: 0800 953 1533 Access Code: 2339939# Consolidated Statements of Income (unaudited) For the three months ended For the year ended ------------------ ------------------ (Expressed in millions of Chilean pesos) Sep-10 Dec-10 Dec-09 Dec-10 OPERATING INCOME Interest revenue 99,158 102,239 314,115 387,639 Interest expense (45,743) (46,737) (120,727) (163,229) Net interest revenue 53,415 55,502 193,388 224,410 Fees and income from services, net 15,105 13,883 43,261 58,221 Trading and investment income, net (15,954) (19,725) 4,563 (9,410) Foreign exchange gains (losses), net 34,597 19,014 49,635 44,611 Other operating revenue 1,418 5,223 5,087 8,832 Operating revenues 88,581 73,897 295,934 326,664 - Allowances for loan losses (14,070) (6,184) (68,855) (51,187) - Net operating revenues 74,511 67,713 227,079 275,477 - Personnel salaries and expenses (17,643) (19,336) (65,733) (71,034) Administration expenses (11,867) (11,843) (44,592) (46,793) Depreciation, amortization and impairment (1,796) (1,865) (6,310) (7,117) Other operating expenses (1,913) (5,294) (9,753) (13,128) - Net operating income 41,292 29,375 100,691 137,405 Income attributable to investments in other companies - 12 445 296 Non-controlling interest 37 420 - 977 Income before income taxes 41,329 29,807 101,136 138,678 Income taxes (5,299) (3,104) (16,027) (19,635) Income for the period 36,030 26,703 85,109 119,043 Consolidated Balance Sheets (unaudited) (Expressed in millions of Chilean pesos) Dec 09 Sep 10 Dec 10 Assets Cash and due from banks 110,331 112,680 202,339 Items in course of collection 95,796 263,280 79,680 Trading portfolio financial assets 76,156 152,263 197,580 Financial investments available-for-sale 737,162 676,159 746,248 Financial investments held-to-maturity - - - Investments purchased under agreements to resell 51,970 25,764 75,676 Derivative financial instruments 126,140 200,451 204,067 Loans and receivables to banks 86,220 42,967 63,998 Loans and receivables to customers 5,011,656 5,347,129 5,469,184 Allowance for loan losses (95,950) (103,993) (106,606) --------- --------- --------- Loans and receivables to customers, net 4,915,706 5,243,136 5,362,578 Investments in other companies 3,583 3,583 3,583 Intangibles 13,630 12,596 13,096 Premises and equipment, net 55,212 54,009 53,430 Income tax provision - current - 805 131 Deferred income taxes 19,841 19,611 25,417 Other assets 87,712 94,673 98,266 Total Assets 6,379,459 6,901,977 7,126,089 Liabilities: Deposits and other sight liabilities 496,270 588,756 612,064 Items in course of collection 64,854 238,918 41,525 Securities sold under agreements to resell 465,513 146,668 189,350 Deposits and other term liabilities 3,316,045 3,507,104 3,700,454 Derivative financial instruments 114,703 169,817 175,261 Borrowings from financial institutions 362,403 588,484 503,692 Debt instruments 935,219 1,000,750 1,215,435 Other financial obligations 26,853 25,089 23,660 Income tax provision - current 7,831 10,695 7,299 Deferred income taxes 15,644 16,539 21,244 Allowances 53,118 72,483 79,747 Other liabilities 17,471 21,619 20,998 Total Liabilities 5,875,924 6,386,922 6,590,729 Shareholders' equity: Capital 326,038 342,379 342,379 Reserves 25,054 26,406 26,406 Valuation gains (losses) (6,557) (7,190) (2,758) Retained earnings: Retained earnings from prior years 116,445 104,907 106,869 Profit for the period 85,109 92,340 119,043 Less: Accrual for mandatory dividends (42,554) (46,170) (59,522) Minority Interest - 2,383 2,943 Total Shareholders' Equity 503,535 515,055 535,360 Total equity and liabilities 6,379,459 6,901,977 7,126,089 Selected Performance Ratios (unaudited) As of or for the three month period ended For the year ended ---------------------------- ---------------------------- Sep-10 Dec-10 2009 2010 Solvency indicators Basel index(5) 12.82% 13.43% 13.92% 13.43% Shareholders' equity / total assets 7.46% 7.51% 7.89% 7.51% Shareholders' equity / total liabilities 8.06% 8.12% 8.57% 8.12% Credit quality ratios Risk index (Allowances / total loans) 1.94% 1.95% 1.91% 1.95% Allowances for loan losses / Total loans(1) 1.05% 0.45% 1.37% 0.94% Allowances for loan losses / Total assets(1) 0.82% 0.35% 1.1% 0.72% Allowances for loan losses / Gross operating income 15.9% 8.4% 23.3% 15.7% Allowances for loan losses / Net income 39.1% 23.2% 80.9% 43.0% Profitability ratios Net interest revenue / Interest-earning assets(1)(2) 3.51% 3.49% 3.28% 3.53% Gross operating income / Total assets(1) 5.13% 4.15% 4.64% 4.58% Gross operating income / Interest-earning assets(1)(2) 5.82% 4.65% 5.03% 5.14% ROA (before taxes), over total assets(1) 2.39% 1.67% 1.59% 1.95% ROA (before taxes), over interest-earning assets(1)(2) 2.71% 1.88% 1.7% 2.18% ROE (before taxes)(1) 32.1% 22.3% 20.09% 25.9% ROA, over total assets(1) 2.09% 1.50% 1.33% 1.67% ROA, over interest-earning assets(1)(2) 2.36% 1.68% 1.45% 1.87% ROE(1) 30.71% 22.45% 18.46% 25.02% Efficiency ratios Operating expenses / Total assets(1) 1.93% 2.15% 1.98% 1.94% Operating expenses/ Total loans(1) 2.48% 2.80% 2.5% 2.52% Operating expenses / Operating revenues 35.3% 44.7% 42.7% 42.3% Earnings Diluted Earnings per share before taxes (Chilean pesos per share) 0.1820 0.1314 0.4542 0.4457 Diluted Earnings per ADR before taxes (U.S. dollars per ADR) 1.8648 1.4041 4.4750 4.7641 Diluted Earnings per share (Chilean pesos per share) 0.1586 0.1177 0.3822 0.5246 Diluted Earnings per ADR (U.S. dollars per ADR) 1.6255 1.2579 3.7658 5.6076 Total Shares Outstanding (Thousands)(4) 226,909,290,6 226,909,290,6 222,662,374,3 226,909,290,6 Peso exchange rate for US$1 547.10 467.78 507.52 467.78
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to CorpBanca concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and CorpBanca does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
