NYSE:ITCB

Stock Analysis Report

Executive Summary

Itaú CorpBanca provides wholesale and retail banking services to large and medium sized companies, individuals, and institutional clients.

Rewards

PE ratio (14.8x) is below the US market (18.4x)

Earnings are forecast to grow 22.98% per year

Earnings have grown 11.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Itaú CorpBanca's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ITCB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

ITCB

2.7%

US Banks

1.1%

US Market


1 Year Return

-43.8%

ITCB

22.7%

US Banks

17.8%

US Market

Return vs Industry: ITCB underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: ITCB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ITCBIndustryMarket
7 Day3.9%2.7%1.1%
30 Day-6.6%0.9%1.4%
90 Day-33.0%10.0%3.9%
1 Year-43.3%-43.8%26.3%22.7%20.3%17.8%
3 Year-36.2%-37.2%31.8%22.6%44.8%35.4%
5 Yearn/a80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Itaú CorpBanca's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Itaú CorpBanca undervalued compared to its fair value and its price relative to the market?

14.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITCB ($7.9) is trading above our estimate of fair value ($1.18)

Significantly Below Fair Value: ITCB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ITCB is poor value based on its PE Ratio (14.8x) compared to the Banks industry average (12.7x).

PE vs Market: ITCB is good value based on its PE Ratio (14.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ITCB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ITCB is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Itaú CorpBanca forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITCB's forecast earnings growth (23% per year) is above the savings rate (1.7%).

Earnings vs Market: ITCB's earnings (23% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITCB's revenue (15.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ITCB's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITCB's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Itaú CorpBanca performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITCB has high quality earnings.

Growing Profit Margin: ITCB's current net profit margins (15.1%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: ITCB's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: ITCB's earnings growth over the past year (14.8%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: ITCB earnings growth over the past year (14.8%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: ITCB's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Itaú CorpBanca's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ITCB has a low level of unsold assets or inventory.

Debt Coverage by Assets: ITCB's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: ITCB's level of assets compared to its equity is low.

Allowance for Bad Loans: ITCB has a low allowance for bad loans.

Low Risk Liabilities: ITCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: ITCB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ITCB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: ITCB has a high level of bad loans (7.6%)


Next Steps

Dividend

What is Itaú CorpBanca's current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: ITCB's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ITCB's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: ITCB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ITCB has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), ITCB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITCB's dividends in 3 years are forecast to be well covered by earnings (28.2% payout ratio).


Next Steps

Management

What is the CEO of Itaú CorpBanca's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Manuel Olivares Rossetti (53yo)

0.9yrs

Tenure

0

Mr. Manuel Olivares Rossetti serves as Chief Executive Officer at Itaú CorpBanca since January 1, 2019. He was General Manager of Banco Bilbao Vizcaya Argentaria, Chile until 2018 and served as its Chief E ...


Management Age and Tenure

2.9yrs

Average Tenure

45yo

Average Age

Experienced Management: ITCB's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ITCB's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Manuel Olivares Rossetti (53yo)

    Chief Executive Officer

    • Tenure: 0.9yrs
  • Marcela Leonor Jiménez Pardo (44yo)

    Corporate Director of Human Resources

    • Tenure: 3.7yrs
  • Felipe Campos (44yo)

    • Tenure: 3.7yrs
  • Gabriel de Moura (43yo)

    CFO & Corporate Finance Manager

    • Tenure: 3.7yrs
  • Claudia Labbé Montevecchi

    Head of Investor Relations

    • Tenure: 0yrs
  • Luciana Hildebrandi Marchione (46yo)

    Corporate Director of Marketing & Products

    • Tenure: 0.9yrs
  • Cristián Toro Cañas (48yo)

    General Counsel

    • Tenure: 3.5yrs
  • Jorge Novis Neto (41yo)

    Corporate Director of Operations

    • Tenure: 1.7yrs
  • Jonathan Covarrubias Hernández

    Chief Accounting Officer

    • Tenure: 0yrs
  • Sven Riehl (50yo)

    Chief Compliance Officer & Head of all Non-Financial Risks

    • Tenure: 2.3yrs

Board Members

  • Jorge Selume Zaror (67yo)

    Director

    • Tenure: 18.6yrs
  • Jorge Andrés Saieh Guzmán (48yo)

    Chairman of the Board

    • Tenure: 7.8yrs
  • Fernando Aguad Dagach (59yo)

    Director

    • Tenure: 23.5yrs
  • Fernando Concha Ureta (60yo)

    Independent Director

    • Tenure: 3.7yrs
  • Ricardo Villela Marino (45yo)

    Vice Chairman of the Board

    • Tenure: 3.7yrs
  • Gustavo Arriagada Morales (65yo)

    Independent Director

    • Tenure: 9.3yrs
  • Milton Maluhy Filho (42yo)

    Director

    • Tenure: 0.9yrs
  • Pedro Samhan Escandar (68yo)

    Independent Director

    • Tenure: 3.3yrs
  • Andrés Bucher Cepeda (55yo)

    Director

    • Tenure: 2.8yrs
  • Bernard Pasquier (65yo)

    Independent Director

    • Tenure: 2.6yrs

Company Information

Itaú CorpBanca's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Itaú CorpBanca
  • Ticker: ITCB
  • Exchange: NYSE
  • Founded: 1871
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CL$2.147t
  • Listing Market Cap: CL$2.757b
  • Shares outstanding: 512.41b
  • Website: https://banco.itau.cl

Number of Employees


Location

  • Itaú CorpBanca
  • Rosario Norte 660
  • Las Condes
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITAUCORPSNSE (Santiago Stock Exchange)YesCommon SharesCLCLPApr 2016
ITCBNYSE (New York Stock Exchange)SPONSORED ADRUSUSDApr 2016

Biography

Itaú CorpBanca provides wholesale and retail banking services to large and medium sized companies, individuals, and institutional clients. The company offers checking and savings accounts, as well as deman ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:50
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.