COVID – 19 Update on our operations and initiatives April 13 th , 2020 1
Macro Covid – 19 Evolution in Chile 7.213 3.404 434 156 1 Time line April 2 nd March 3 rd March 16 th March 20 th April 12 th The peak of the epidemic in Chile is Volatility in the markets 18 confirmed deceased in estimated to occur between the end continues, the number of cases First confirmed case of the country. Contingency of April and the beginning of May doubles patient from Singapore measures are extreme Chile enters phase 4, borders are closed 80 confirmed deceased 2
Macro Projections GDP (%) CPI (%) 4.6 4.6 6.0 4.5 4.4 4.5 3.6 -1.9 3.0 2.9 -3.0 -5.0 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Monetary Policy (%) FX 950 920 880 860 1.00 0.50 0.50 830 800 0.00 0.00 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 3 Base Slow V U
Macro Initiatives taken by the Chilean government 1 3 2 Government credit Use of collateral Credit renegotiation lines surplus for SMEs Bank loans for companies affected by Regulatory change in order to allow the use Regulatory exception for mortgage loans to COVID-19 and annual sales up to one million of excess of mortgages’ collaterals to allow client's rescheduled installments not UF, will have a preferential interest rate and guarantee loans for SMEs to be treated as renegotiations for will be state guaranteed provisioning purposes 4 5 6 Impairment of assets Margin of derivatives Basel III Allows exceptional extension of 18 months Regulatory modification to compensate the Given current conditions, the CMF decided for the alienation of impaired assets value of derivatives with the amount of the to postpone the implementation of the received in lieu of payment margin paid to the counterparty , reducing new regulations the capital charge associated with derivative contracts 4
COVID-19 Crisis management pillars To organize our operations Final remarks 1 4 in order to continue to We have prepared ourselves to provide the best solutions face critic situations by and accessibility to our continuously investing in clients during the crisis people development and through continuous technology , both in running the communication and digital Bank’s operations as well as channels serving our clients To protect and support our To continue to operate our 2 3 teams during this period bank by managing the reinforcing our values and operational, credit, liquidity organizational culture and market risks that were directly impacted by the Pillars organized crisis to manage the impacts of COVID-19 in our operations 5
COVID-19 Crisis management pillars To organize our operations Final remarks 1 4 in order to continue to We have prepared ourselves to provide the best solutions face critic situations by and accessibility to our continuously investing in clients during the crisis people development and through continuous technology , both in running the communication and digital Bank’s operations as well as channels serving our clients To protect and support our To continue to operate our 2 3 teams during this period bank by managing the reinforcing our values and operational, credit, liquidity organizational culture and market risks that were directly impacted by the Pillars organized crisis to manage the impacts of COVID-19 in our operations 6
Clients Digital Communication Frequent communication with our clients 1 Up-to-date informationabout our products and services Encourage the use of our digital 2 channels to support our clients at this time of social distancing 3 Tips to avoid digital fraud related to the current situation Virtual meetings with corporate 4 clients Launch of the “ Vision of leaders “ - 5 Live streaming with the leaders of the most important sectors of the economy 7
Clients Credit deferral campaign | Consumer and Mortgage Loans Credit Cards Commercial Loans Deferral of next three Deferral of next three installments of non Our clients, with non installments of non overdue contracts, with a overdue contracts, can overdue contracts, with a preferential rate through choose zero minimum preferential rate a new loan with 60 payment in April installments and the first payment in 6 months 20-25% 31% 15% Client acceptance rate Client acceptance rate Client acceptance rate 8
Clients Digital channels – Client access Access to digital have increased significantly; despite this trend, availability of digital channels is at highest level ever 41% uals ls vidua Wide range Number of login to web & app Individ of services and products (Mar-20 vs. Mar-19) to meet the needs of our clients in this period Availability of our digital channels 57% Companies nies (Mar-20) Number of login to web & app 99,5% (Mar-20 vs. Mar-19) 9
Clients Digital channels – Client Transactions Use of digital channels gets more significant with end-to-end transactions, gaining relevance for Individuals and Companies Transfers and Payments Time Deposits Increase in Credit Lines $, Credit Card 150 136 130 ls uals vidua Individ 100 100 100 February 2020 March 2020 February 2020 March 2020 February 2020 March 2020 Transfers and Payments Time Deposits Loans 187 158 139 Companies nies 100 100 100 February 2020 March 2020 February 2020 March 2020 February 2020 March 2020 10
Clients We want to be part of the solution Itaú Corpbancajoins the Itaú Corpbancastarted in Emergency Private Fund for Itaú Corpbancatripled the Instagram a reading initiative Health in Chile with a value of donations made by posting videos telling stories contribution to the employees, reaching CLP$ for children called “ Lee para un “ Confederación de la 205.9 million in donations and Ni ñ o ( “ Read for a Child ” ). an additional CLP$ 488.6 Producción y del Comercio ” to Soon, the bank will also launch collaborate with the country million from clients in Chile an initiative that in this fight against COVID-19 provides free books for children $1,538,000,000 $694,505,703 * Chilean pesos 11
COVID-19 Crisis management pillars To organize our operations Final remarks 1 4 in order to continue to We have prepared ourselves to provide the best solutions face critic situations by and accessibility to our continuously investing in clients during the crisis people development and through continuous technology , both in running the communication and digital Bank’s operations as well as channels serving our clients To protect and support our To continue to operate our 2 3 teams during this period bank by managing the reinforcing our values and operational, credit, liquidity organizational culture and market risks that were directly impacted by the Pillars organized crisis to manage the impacts of COVID-19 in our operations 12
Our People Measures implemented We have implemented a series of measures to protect and support our teams during the crisis period Communication Prevention Team Management Suspension of large Use of personal gatherings and meetings Daily communication protection equipment and definition of an internal about the evolution of and new layouts protocol for high risk our initiatives personnel and diagnosed regarding COVID-19 cases Financial Support Job Stability Health Flu Vaccination Anticipation of the campaign for Suspension of annual national holiday employees and intense terminations without bonus and one-time cleaning of the building cause for 60 days financial support for and branches transportation 13
COVID-19 Crisis management pillars To organize our operations Final remarks 1 4 in order to continue to We have prepared ourselves to provide the best solutions face critic situations by and accessibility to our continuously investing in clients during the crisis people development and through continuous technology , both in running the communication and digital Bank’s operations as well as channels serving our clients To protect and support our To continue to operate our 2 3 teams during this period bank by managing the reinforcing our values and operational, credit, liquidity organizational culture and market risks that were directly impacted by the Pillars organized crisis to manage the impacts of COVID-19 in our operations 14
Risk Management Business Continuity Our structure to Risk appetite manage risks 5 dimensions guide our decision making for many years, defining the level of the 1 st line of defense risks acceptable to our organization. Business Areas 2 nd line of defense Our capital policy is to maintain the maximum level between 120% of Capitalization alization regulatory capital or the average of the 3 largest banks in Chile. Risk and Finance Control and We are constantly evaluating the impacts of Basel III requirements Management Department. Risk appetite ▪ Our liquidity should endure long periods of stress Liquidit dity Policies ▪ Procedures ▪ Dissemination of the risk ▪ Credit concentration limits and enforcement of revenue diversification Credit it, Marke ket and Busin iness ss culture in the business seeking lower volatility in our results 3 rd line of defense Centered on controlling operational risk events that could have an Operat atio iona nal l risks sks adverse impact on our strategy Internal Audit , linked to the Board of Directors Deals with risks that could impact our brand value and reputation Repu putat atio ion 15
Recommend
More recommend
