Itaú Corpbanca

Consolidated net income was COP 3.5 billion in Q4 2022 and COP 456.9 billion for full-year 2022; net income in Chile was COP 103.8 billion in Q4 and COP 881.2 billion for the year. Consolidated ROTE was 12.4% in Q4 and 17.2% for full-year 2022; ROTE in Chile was 17.7% in Q4 and 22.2% for the year. Consolidated financial margin with clients grew 31.1%, fee income grew 15.6%, noninterest expenses rose 15% YoY, and the efficiency ratio was 54%. In Chile, the financial margin with clients increased 8.2% QoQ and 27.9% YoY, fees grew 19.7% YoY, and cost of credit was COP 86.6 billion in the quarter, including COP 5 billion of additional provisions; NPL coverage was 164%. Full-year 2022 loan portfolio growth in Chile was 13.4%, with consumer loans up 26.1% and mortgage loans up 16%, and retail reached 38.6% of the portfolio. For 2023, management expects client margin rates to remain largely stable, loan growth to be slower due to the economy and tougher credit conditions, cost of credit to be between 1.1% and 1.5%, and costs to grow in line with inflation. Management also said it does not have short-term ROATE guidance, but continues to view medium-term ROATE in Chile as around 14%, with Colombia targeted to reach its cost of equity over the next couple of years.

Gabriel Moura framed the quarter as evidence that the bank is converging toward its long-term strategy: stronger customer experience, better product differentiation, and higher shareholder value. He highlighted progress in SME satisfaction, foreign exchange lending, trade finance, investment banking, cash management, digital engagement, and ESG, and said the bank is open to partnerships and open finance models as long as they are useful to clients and sustainable. His tone was confident and upbeat, while acknowledging that 2023 will be harder on loan growth and credit quality.

Rodrigo Couto focused on the bank’s managerial reporting model and the financial outcomes for 2022, emphasizing that the presentation excludes nonrecurring items and uses internal criteria. He cited 2022 consolidated net income of COP 456.9 billion, Chile net income of COP 881.2 billion, full-year consolidated ROTE of 17.2%, Chile ROTE of 22.2%, and a stable 54% efficiency ratio. He also noted consolidated expenses were up 15% mainly from inflation, credit cost rose 24.8% from a low 2021 base, and 2023 guidance calls for cost of credit of 1.1% to 1.5%, with costs growing in line with inflation.

Analysts focused on 2023 fees, the potential impact of Chile’s interchange fee cap, loan growth in Chile, ROATE guidance, Colombia improvements, and the future of APIs/open finance. Management said 2023 fee growth should be less dramatic than 2022 because fees remain credit-driven, though insurance-related income from the Cardif transaction could add support; on interchange, it said the direct impact on its relatively small credit card portfolio is not material in the short term, but the industry may need new business models as the business grows. On loan growth, management said it is one of the hardest variables to forecast this year, with consumer and commercial growth both tied to the cycle and cost of credit. On ROATE, management gave no short-term guidance, reiterated a medium-term Chile target of around 14%, and said Colombia should move toward cost of equity over the next couple of years through continued cost and business-mix improvements.