Corpbanca
Encyclopedia
Corpbanca is a sociedad anónima
(corporation
) licensed by the Chile
an Superintendency of Banks to operate as a commercial bank
.
led by Aníbal Pinto
, who would later become President of Chile
, drew up the by-laws of Banco de Concepción. The Bank began business on October 6, 1871 and has continued operating uninterrupted until today, which makes it the oldest bank in Chile. Following nationalization
of private banking
in 1971, the ownership of the Bank changed and came under the control of CORFO. That same year, Banco de Concepción acquired the local interests of Banco Francés and Italiano, which provided the institution presence in Santiago
. Later, in 1972, the bank purchased Banco de Chillán and, in 1975, Banco de Valdivia. In November 1975, CORFO sold shares to private businessmen who took control of the bank the following year. After a period of growth, in 1980 Banco de Concepción was redefined as a nationwide bank; it changed its name to Banco Concepción and moved its headquarters from Concepción to Santiago. In 1986 the National Mining Corporation (SONAMI) acquired the Bank and took special interest in financing small and medium mining projects, increased its capital
and sold its riskier portfolio to the Central Bank. In late 1995, SONAMI sold the majority of its shareholding in the Bank to a group of investors led by Álvaro Saieh
, through the holding company
INFISA (now Corp Group).
that had existed since the early 1980s. As part of the repositioning strategy the bank's name was changed to Corpbanca. In 1998, through the acquisition of Corfinsa (consumer loan division of Banco Sudamericano) and Financiera Condell, the bank formed Bancondell initiating its presence in the medium - lower income consumer business (massive banking). The defined strategy has helped Corpbanca achieve the financial sector's second strongest loan growth over the past seven years and, in addition, reversing the 1999 losses and achieve an adequate ROE
since 2001. In November 2002, Corpbanca issued shares in the local market for a total of USD$250 million. The issuance was made in the Emerging Stock Market, being the first issuer to issue instruments in such market.
Subsequently, in November 2004, Corpbanca took a major step towards internationalization when it completed the process of listing its American Depositary Receipt
s (ADRs) on the New York Stock Exchange
.
advisory services, mutual fund
management, insurance
brokerage and securities brokerage services through its subsidiaries. The Bank was listed on the New York Stock Exchange
for the first time on November 1, 2004. As of December 31, 2005, Corpbanca had a nationwide network of 68 branches in Chile, including 28 branches operating under the Corpbanca name, 20 branches operating under the Bancondell name and 20 integrated branches, which operate under both the Corpbanca and Bancondell names. As of December 31, 2005, the Bank owned and operated 108 automated teller machines (ATMs) in Chile. Corpbanca's customers have access to over 4,000 ATMs in Chile through its agreement with Redbanc S.A. (Redbanc).
S.A. (corporation)
S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
(corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
) licensed by the Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
an Superintendency of Banks to operate as a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
.
History
In 1871, a group of neighbors from ConcepciónConcepción, Chile
Concepción is a city in Chile, capital of Concepción Province and of the Biobío Region or Region VIII. Greater Concepción is the second-largest conurbation in the country, with 889,725 inhabitants...
led by Aníbal Pinto
Aníbal Pinto
Aníbal Pinto Garmendia was a Chilean political figure. He served as the president of Chile between 1876 and 1881.-Early life:...
, who would later become President of Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, drew up the by-laws of Banco de Concepción. The Bank began business on October 6, 1871 and has continued operating uninterrupted until today, which makes it the oldest bank in Chile. Following nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of private banking
Private banking
Private banking is banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers...
in 1971, the ownership of the Bank changed and came under the control of CORFO. That same year, Banco de Concepción acquired the local interests of Banco Francés and Italiano, which provided the institution presence in Santiago
Santiago, Chile
Santiago , also known as Santiago de Chile, is the capital and largest city of Chile, and the center of its largest conurbation . It is located in the country's central valley, at an elevation of above mean sea level...
. Later, in 1972, the bank purchased Banco de Chillán and, in 1975, Banco de Valdivia. In November 1975, CORFO sold shares to private businessmen who took control of the bank the following year. After a period of growth, in 1980 Banco de Concepción was redefined as a nationwide bank; it changed its name to Banco Concepción and moved its headquarters from Concepción to Santiago. In 1986 the National Mining Corporation (SONAMI) acquired the Bank and took special interest in financing small and medium mining projects, increased its capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
and sold its riskier portfolio to the Central Bank. In late 1995, SONAMI sold the majority of its shareholding in the Bank to a group of investors led by Álvaro Saieh
Álvaro Saieh
Álvaro Saieh Bendeck is a wealthy Chilean businessman of Palestinian ancestry. Since June 18, 1996, he has been First Vice Chairman of the Board of Directors for one of Chile's largest private banking institutions, Corpbanca S.A. He is also the acting Chief Executive Officer for the media...
, through the holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
INFISA (now Corp Group).
Following the Corp Group acquisition
Since the acquisition, the new shareholders defined a new strategy; restructuring and repositioning its business in order to compete with Chile's leading institutions. To promote growth, the controlling group redefined the Bank's objectives making its target market personal financing and developing products for the middle-income population and small and medium sized companies. In the first quarter of 1997 the shareholders of Banco Concepción reached an agreement with the Chilean Central Bank over extinguishing the subordinated debtSubordinated debt
In finance, subordinated debt is debt which ranks after other debts should a company fall into receivership or bankruptcy....
that had existed since the early 1980s. As part of the repositioning strategy the bank's name was changed to Corpbanca. In 1998, through the acquisition of Corfinsa (consumer loan division of Banco Sudamericano) and Financiera Condell, the bank formed Bancondell initiating its presence in the medium - lower income consumer business (massive banking). The defined strategy has helped Corpbanca achieve the financial sector's second strongest loan growth over the past seven years and, in addition, reversing the 1999 losses and achieve an adequate ROE
ROE
ROE is:* Return on equity, an economics acronym* Rise of the Eldrazi, a Magic: The Gathering expansion* Royal Observatory, Edinburgh, Scotland* Rubies of Eventide, an online game acronym* Rules of engagement, a military acronym* Rebuild of Evangelion...
since 2001. In November 2002, Corpbanca issued shares in the local market for a total of USD$250 million. The issuance was made in the Emerging Stock Market, being the first issuer to issue instruments in such market.
Subsequently, in November 2004, Corpbanca took a major step towards internationalization when it completed the process of listing its American Depositary Receipt
American Depositary Receipt
An American depositary receipt is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the US financial markets...
s (ADRs) on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
Operations
The Bank provides a wide range of both commercial and retail banking services to its customers. In addition, Corpbanca provides financialFINANCIAL
FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...
advisory services, mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
management, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
brokerage and securities brokerage services through its subsidiaries. The Bank was listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
for the first time on November 1, 2004. As of December 31, 2005, Corpbanca had a nationwide network of 68 branches in Chile, including 28 branches operating under the Corpbanca name, 20 branches operating under the Bancondell name and 20 integrated branches, which operate under both the Corpbanca and Bancondell names. As of December 31, 2005, the Bank owned and operated 108 automated teller machines (ATMs) in Chile. Corpbanca's customers have access to over 4,000 ATMs in Chile through its agreement with Redbanc S.A. (Redbanc).
Corpbanca's main shareholders
| Rank | Shareholder | Stocks as of November 2006 | % of Property |
|---|---|---|---|
| 1 | Corp Group Banking S.A. | 112,530,207,591 | 49.59% |
| 2 | Cía. Inmobiliaria y de Inversiones Saga S.A. | 18,032,162,741 | 7.95% |
| 3 | Citibank Chile Cta. Terceros Cap. XIV | 7,367,566,044 | 3.25% |
| 4 | Bank of New York Bank of New York The Bank of New York was a global financial services company established in 1784 by the American Founding Father Alexander Hamilton. It existed until its merger with the Mellon Financial Corporation on July 2, 2007... |
5,568,700,000 | 2.45% |
| 5 | Manufacturas Interamericana S.A. | 5,413,342,266 | 2.39% |
| 6 | Ucb Bancshares S.A. | 4,285,534,265 | 1.89% |
| 7 | Compañía de Seguros de Vida Consorcio Nacional | 4,132,277,677 | 1.82% |
| 8 | AFP Provida S.A. para Fondo de Pensión C | 2,956,089,842 | 1.30% |
| 9 | Inversiones y Representaciones S.A. | 2,141,054,000 | 0.94% |
| _ | Total | 226,909,290,577 | 100% |