Banco Itaú Chile

OTCPK:ITCL.Y Stock Report

Market Cap: US$2.2b

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Banco Itaú Chile Past Earnings Performance

Past criteria checks 2/6

Banco Itaú Chile has been growing earnings at an average annual rate of 31.9%, while the Banks industry saw earnings growing at 10.6% annually. Revenues have been growing at an average rate of 5.9% per year. Banco Itaú Chile's return on equity is 9.5%, and it has net margins of 30.8%.

Key information

31.91%

Earnings growth rate

22.45%

EPS growth rate

Banks Industry Growth11.18%
Revenue growth rate5.92%
Return on equity9.50%
Net Margin30.81%
Next Earnings Update09 Apr 2024

Recent past performance updates

Recent updates

Seeking Alpha • Sep 25

Banco Itaú Chile: Quality Bank, But Not Good Enough

Summary Banco Itaú Chile is one of the largest Chilean banks with operations in Chile and Colombia. Its largest shareholder is the Brazilian banking conglomerate Itaú Unibanco. Banco Itaú Chile had a strong last quarter, pays generous dividends, and owns a high-quality loan portfolio. Banco Itaú Chile is the cheapest among its competitors measured by price to book. Its parent company is valued at a P/B multiple of 1.43, while Banco Itaú Chile is at 0.49. However, lagging digital transformation, an inefficient Colombian segment, and insufficient capital adequacy are enough to give Banco Itaú Chile a hold rating. Read the full article on Seeking Alpha
Seeking Alpha • Jan 29

Itau Corpbanca: Deep Value Play With Potential For Higher Dividend

Summary The Chilean bank, Itau Corpbanca, is going through a turnaround with improved profitability. The P/B multiple and dividend are both much lower than seen during the better years for the bank that are potentially coming back. Majority owned by Brazilian Itau Unibanco, Itau Corpbanca has both financial support and a motive to pay a large dividend. The stock has been forming a stage one bottom for the past one and a half years. A recent piece of news led me to look at Chilean stocks and especially banks. According to Bloomberg, investors have pulled out $50 billion out of Chile due to the political turmoil. The country is facing socialist tendencies led by the president Gabriel Boric. A crisis is often an opportunity for an investor or speculator who is willing to be a contrarian. Not all crises are opportunities. There’s always a risk things get worse and remain bad for a long time. Here, we look at the Chilean bank, Itau Corpbanca (ITCB). The bank has been going through a turnaround for the past couple of years and the results are starting to show up - waiting to be visible on the stock chart. I'm not an expert on the Chilean economy or its banking industry, so here the investment case relies on three simple tenets: improved profitability of the bank should re-rate the stock to its historical P/B level, a well-covered dividend provides some protection against possible currency depreciation, and the stock has been interestingly consolidating for 1.5 years setting up to potentially break out in the spirit of stage analysis. Company overview and the Chilean economy in a nutshell The roots of Itau Corpbanca date back to 1871 but the modern bank is a result of a merger between Banco Itau Chile and Corpbanca in 2016. The main markets for Itau are Chile and Colombia. 84% of the assets and 82% of the loans are in Chile. Itau has 7,700 employees and 255 branches, down from 398 when the two banks merged. Currently it’s the fourth largest bank in Chile. Today the bank has a majority owner, Itau Unibanco Holding (ITUB), a major Brazilian bank, which owns 56% of Itau Corpbanca. In October 2021 there was a capital injection of 830 billion Chilean pesos by Itau Unibanco to align the bank with Basel III standards, which increased its ownership to the current level. Itau Corpbanca represents 17% of Itau Unibanco’s loan portfolio. Both S&P Global and Moody’s expect Itau Corpbanca to improve its profitability due to three drivers. For some time the bank has focused more on retail banking and reduced exposure to riskier corporate loans. The bank has also placed more emphasis on risk management as the NPL ratio was reduced from 2.8% to 2%. Together with improved efficiency, this has resulted in upward swings in ROA and ROE, as presented in the next section. Highlights selected by the company. (Q3 investor presentation.) The credit rating agencies also state that in a case of turmoil, the (credit) risks of the bank are seen lower due to the ownership of Itau Unibanco and Itau Corpbanca’s importance to the financial system of Chile. Both agencies did improve their ratings in 2022. Moody's said the following in its report. The upgrade of Itaú Chile's BCA to baa2 is driven by gradual and sustainable improvements in asset quality, profitability, and capital indicators, primarily over the past two years, benefited by the reinforcement of risk management practices and the repositioning into the retail banking sector in Chile. The BCA upgrade also incorporates Moody's expectation that future risks will be more contained in the coming quarters due to rigid risk underwriting criteria and conservative provisioning policies established by its Brazilian parent Itau Unibanco Holding S.A. (Itaú Unibanco, Ba3 stable). The majority control by Itaú Unibanco will ensure stability in the bank's capitalization, which will also be supported by increased recurring earnings generation as the bank continues to grow into higher-margined retail lending and fee-based activities in Chile. Chilean economy One of Itau Corpbanca’s competitors, Banco de Chile, gave an overview of the Chilean economy in its latest investor presentation. Although there’s political turmoil, one could easily present a case where the Chilean economy does well in the coming few years. Chile could benefit from the increasing demand and price of copper, increasing price of foodstuff, and the reopening of China. Overview of Chilean economy. (Bank of Chile.) Like anywhere else in the world, inflation has been raging high in Chile. While high inflation could boost the net interest income of the bank, it can also increase credit defaults and other costs. According to the above-mentioned Bloomberg article, the Chilean central bank lowered its GDP growth forecast but increased its forecast of interest rates. Here, we simply assume that these two effects factor each other out and the internal performance of Itau Corpbanca helps to boost its profits. Inflation in Chile. (Tradingeconomics.com) Profits could be on the path to normalize Itau Corpbanca trades at a significant discount on a P/B multiple in comparison with its peers Banco de Chile (BCH) and Banco Santander-Chile (BSAC). This can be explained by the lower ROE (about half of peers) for Itau. Overall, the peers have higher quality operations by most of the traditional measures for banks, and this is reflected in their higher multiples. Approximate P/B and ROE by Ycharts. (Ycharts.) During 2013-2015, Itau Corpbanca achieved ROEs between 13% and 15%. From 2016 to 2020, the performance was poor but now for the past two years the ROE and also ROA has been increasing. According to Finbox, the bank has already reached a ROE of 13%. Depending on a data provider, the stock has been trading at a P/B multiple of 0.8-0.9 when the bank has achieved double-digit returns on equity. Currently, the P/B stands close to 0.6, according to Seeking Alpha and other sources. If the stock would re-rate to 0.8, the setup would represent an upside of 33%. Quarterly ROE and ROA. (Finbox.) CEO Gabriel Moura said during the Q3 earnings call: It's just because you asked a return on average equity and return on tangible equity. We always in the bank, as I mentioned, we discussed return on tangible equity because of the goodwill that we have in order to compare it to the other banks. As this goodwill was a mark-to-market of the net asset value of Corpbanca when we acquired the bank. So it's not a cash base, it's goodwill but a mark-to-market. In fact, that's why we are always discussing return on tangible equity. We do not have short-term guidance for returns. As we mentioned, we do see returns in Colombia achieving 12% in 2024. And we have a guidance of Chile for around 14% on medium term. We think that on a more normalized level of return that we see for our operation in Chile is to have 14%, 15% in return. On the last 7 trimesters quarters, we were higher -- significantly higher than that. I think that we are going to continue to see returns higher than the target that we have, but we are going to converge in the near future to something around 14%. Technical setup looks interesting Since March 2020, Itau has been trading in a range between $2.6 and $6.2 and since July 2021 in a range between $2.6 and $4. The stock has experienced a strong momentum since October 2022 and is on the way to cross a couple of resistance levels if the momentum continues. If the company continues to register a modest improvement in its profitability we could see a significant move higher to catch up with the multiples.
Seeking Alpha • Nov 02

Itau CorpBanca ADS Non-GAAP EPADR of CHF0.19, revenue of CHF374.37B

Itau CorpBanca ADS press release (NYSE:ITCB): Q3 Non-GAAP EPADR of CHF0.187. Revenue of CHF374.37B (+34.5% Y/Y).
Seeking Alpha • Jul 29

Itau CorpBanca ADS Non-GAAP EPS of CH$0.24, revenue of CH$373.06B beats by CH$372.64B

Itau CorpBanca ADS press release (NYSE:ITCB): Q2 Non-GAAP EPS of CH$0.24. Revenue of CH$373.06B (+45.7% Y/Y) beats by CH$372.64B.

Revenue & Expenses Breakdown

How Banco Itaú Chile makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

OTCPK:ITCL.Y Revenue, expenses and earnings (CLP Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Dec 231,151,914354,887684,7520
30 Sep 231,099,421370,196681,3920
30 Jun 231,059,075417,889678,1340
31 Mar 231,140,400411,925681,7600
31 Dec 221,157,331433,744674,6730
30 Sep 221,257,686414,791646,4160
30 Jun 221,232,420355,814629,1160
31 Mar 221,044,501288,034610,7880
31 Dec 211,097,407273,410610,4890
30 Sep 21766,03524,029605,1330
30 Jun 21640,144-43,983608,5210
31 Mar 21573,302-861,087616,7990
31 Dec 20624,715-808,784619,7440
30 Sep 20774,959-740,044654,0020
30 Jun 20872,639-689,589653,7510
31 Mar 20948,304112,562651,2990
31 Dec 19893,791113,684649,5030
30 Sep 19985,932145,762649,4240
30 Jun 19973,856152,207619,6620
31 Mar 19997,113157,539612,7160
31 Dec 18971,454171,331643,5830
30 Sep 18883,298126,347644,8480
30 Jun 18797,99079,497637,8770
31 Mar 18769,46886,167640,4390
31 Dec 17740,00267,821632,0880
30 Sep 17757,99845,767590,5110
30 Jun 17792,15269,250593,7120
31 Mar 17757,15633,187587,8080
31 Dec 16627,46114,911514,5270
30 Sep 16542,66393,335346,5190
30 Jun 16422,67497,730264,1150
31 Mar 16294,46297,906157,4590
31 Dec 15300,869105,757156,1700
30 Sep 15272,23280,465159,0690
30 Jun 15277,51488,929158,9620
31 Mar 15257,62977,901161,1900
31 Dec 14257,38485,693152,5030
30 Sep 14278,217108,809139,4140
30 Jun 14251,47890,225134,9380
31 Mar 14251,38591,338131,2770
31 Dec 13241,82187,723126,4710
30 Sep 13218,97470,557125,3530
30 Jun 13211,04465,860122,3180
31 Mar 13191,34655,786115,6580

Quality Earnings: ITCL.Y has high quality earnings.

Growing Profit Margin: ITCL.Y's current net profit margins (30.8%) are lower than last year (37.5%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: ITCL.Y's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: ITCL.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ITCL.Y had negative earnings growth (-18.2%) over the past year, making it difficult to compare to the Banks industry average (-9%).

Return on Equity

High ROE: ITCL.Y's Return on Equity (9.5%) is considered low.

Return on Assets

Return on Capital Employed

Discover strong past performing companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/03/23 17:40
End of Day Share Price 2024/03/22 00:00
Earnings2023/12/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Banco Itaú Chile is covered by 10 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alonso AramburúBTG Pactual
Paloma Echeverria PaulCitigroup Inc
Javier Pizarro SalaCitigroup Inc