Profile: CorpBanca (BCA)
9 Dec 2013
Corpbanca (the Bank) provides a range of commercial and retail banking services to its customers. The Bank also provides financial advisory services, mutual fund management, insurance brokerage and securities brokerage services through its subsidiaries. As of December 31, 2010, it operated 113 branch offices in Chile, which includes 53 branches operating as Corpbanca, 56 branches operating as Banco Condell, its consumer finance division. In addition, as of December 31, 2010, it owned and operated 382 automated teller machines (ATMs) in Chile, and its customers have access to over 8,200 ATMs (including BancoEstado ATMs) in Chile through its agreement with Redbanc S.A. (Redbanc). The Bank also offers Internet banking to its customers 24 hours a day through its password-protected Internet site, www.corpbanca.cl. Its Internet site offers a range of services, including up-to-date information on balances in deposit, checking, loan, credit card and other accounts and transactional capabilities, such as transfers and payments. As of December 31, 2010, the Bank had over 72,100 customers with activated Internet passwords, allowing them to access its Internet banking services.
Corpbanca offers a range of products and services to its business clients depending on their size, ownership structure and/or investments under management. The Bank has divided its commercial banking services into two businesses: large companies and corporate division, and companies division. Large companies and corporate division serves large economic groups, state-owned companies, mining companies, utilities, energy, seaports, airports, public hospitals or any business. The Large Companies corporate division focuses on offering clients a broad range of services tailored to fit their specific needs. These services include deposit-taking and lending in both pesos and foreign currencies, trade financing, general commercial loans, working capital loans, letters of credit, interest and exchange rate insurance and cash flow management. This division also serves its real estate and project finance customers. As of December 31, 2010, it had over 922 Large Companies and Corporate banking customers. Corpbanca also offers its wholesale banking customers securities brokerage and financial advisory services through its subsidiaries, as well as those products and services available through its New York branch.
The companies Division provides services to businesses with annual sales of less than United States $30 million in Santiago and no set limit throughout the rest of Chile. The companies division also serves small and medium-sized businesses and its factoring and leasing clients. This division offers its customers a range of financial products, including general commercial loans, working capital loans, trade finance, on-lending of financing originated by CORFO (Corporacion de Fomento a la Produccion), overdraft credit lines, letters of credit, mortgage loans, term deposits, factoring and leasing. As of December 31, 2010, it had over 14,520 customers in its companies division.
Corpbanca offers a range of products and services to its individual clients depending on their monthly income and/or net worth. Its retail banking divisions serve retail customers across all income levels, from low-income to high income individuals organized in two divisions: Traditional and Private Banking and Banco Condell. The Bank’s Traditional Banking Division is mainly oriented toward individuals with medium-high income levels (focused on clients with over Chilean pesos (Ch$) 1.2 million monthly income). Its traditional banking services are marketed and operated under the Corpbanca brand name. It offers its traditional and private banking clients products such as checking and deposit accounts, credit lines, credit and debit cards, personal installment loans, mortgage loans, insurance banking and time deposits, among others. In addition, it provides time deposits, mutual funds and savings accounts in pesos, Euros, Unidades de Fomento (UF) and United States dollars, with a minimum term of seven days and no minimum amount for foreign-currency accounts.
During the year ended December 31, 2010, the Bank’s Traditional and Private Banking Division had loans with an annual average balance of Ch$1,297,209 million or 25.1% of total average loans. It offers the products and services, among others, to its traditional and private banking customers, which include checking and deposit accounts, credit and debit cards, mortgage loans, and consumer loans. Its main checking account product is its Integral checking account, through which customers are provided with a package of services, including ATM cards, a credit line, Master Card and American Express credit cards with credit levels established pursuant to the creditworthiness of the individual, fraud insurance and access to Internet and telephone banking.
Corpbanca issues MasterCard and American Express credit cards to its individual clients. In addition to traditional cards, it offers cards issued under certain specialized customer loyalty programs and tailor its marketing of credit card services to different groups based on personal income. The Bank offers two types of mortgages: residential mortgages for the purchase of new and existing homes (including refinancing of existing residential mortgages) and other mortgages, which are loans for other purposes secured by real property owned by the customer. It offers personal consumer loans for a variety of purposes, including personal loans (with automatic payments deducted from a checking or credit card account and with life, home and/or unemployment insurance); university and post-graduate education loans (including life insurance).
The Bank’s Lower Income Retail Banking Division operates under the brand name Banco Condell and is focused on clients with an annual income lower than Ch$7.2 million (United States $20,000). Banco Condell has 53 standalone branches and its own brand identity. Under the Banco Condell brand, it offers consumer lending, credit card services, mortgage loans, insurance and time deposits to the low-to-middle income segments of the Chilean population. The Bank offers, among others, the products and services to its lower income retail banking-Banco Condell customers, which include consumer loans, credit cards and mortagage loans. It offers personal loans under the Banco Condell brand, including personal debt consolidation loans. Under the Banco Condell brand, it provides MasterCard credit cards, which require the payment of an annual fee. Under the Banco Condell brand, it offers mortgage loans for the purchase of new and existing homes denominated in UF.
Treasury and International Division
The Treasury and International Division specializes in financial management and is largely responsible for funding and liquidity, as well as management of gaps on the balance sheet. In addition, through its Treasury and International Division, the Bank manages trading functions, market making and distribution and sales of flow and non flow instruments for its corporate clients. This division is responsible for obtaining foreign currency-denominated credit lines from financial institutions outside of Chile. As of December 31, 2010, the outstanding loans from foreign banks were United States $1,175 million with approximately 30 institutions in United States, Canada, Germany, France, Holland, England, Italy, Switzerland, Japan, Singapore and other countries, including Latin America.
Non-Banking Financial Services Offered through Subsidiaries
Corpbanca has made several strategic long-term investments in non-banking financial services companies, which are engaged in activities complementary to its core banking activities. Through these companies, each of which is its wholly owned subsidiary, the Bank intends to continue to develop a financial services group able to meet the diverse financial needs of its clients. Its subsidiary Corpbanca Corredores de Bolsa S.A. (CCB) provides brokerage services in equities, fixed income, and foreign currency exchange. Corpbanca Agencia de Valores S.A. (CAV) provides brokerage services outside of the Stock Exchanges. Its primary activities are to provide financial solutions to high net worth individuals and family offices in Chile. The Bank incorporated Corpbanca Administradora General de Fondos S.A. (CAGF) to complement banking services offered to individual and corporate clients. CAGF’s function is to manage mutual fund assets for its clients in fixed and variable income instruments in both the local and foreign markets.
Corpbanca Asesorias Financieras S.A. (CAF) provides a range of financial advisory services to a variety of corporations and government agencies, including those services related to debt restructurings, syndicated loans, structured loans, structured investment funds, bilateral grants, mergers and acquisitions, privatizations and company valuations. Its subsidiary Corpbanca Corredores de Seguros S.A. (CCS) offers a line of insurance products. Its subsidiary Corp Legal S.A. (Corp Legal) offers standard procedures of legal services to the bank and its clients. SMU Corp S.A. (SMU Corp), a joint venture with SMU S.A. (SMU), is a retail business holding company owned by its principal shareholder, which indirectly owns Unimarc. The Bank has a 51% ownership interest in the joint venture.
The Bank competes with BCI, Banco de Chile and Banco Santander.
Rosario Norte 660, Casilla 80-D
Company Web Links
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- UPDATE 1-Chile's CorpBanca nears sale, sources say; BBVA, Itaú bidding
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- UPDATE 1-Chile central bank calls for more oversight in cross-holdings