Banco Itau Chile ADR

Ladies and gentlemen, thank you for standing by and welcome to the Banco Itau Chile second quarter 26 financial results conference call. This presentation and the earnings release are available on our Investor Relations website. During the company's presentation, all microphones will be disabled. Later, we'll begin the Q&A session. To ask questions on audio, click on Raise Hand. Once called upon, you'll receive a request to activate your microphone. Please activate it to ask the questions. For questions in writing, just cue the question in the Q&A button. Please beware that your company's name should be visible for your question to be taken. I will now like to turn the conference over to Matias Venezuela, Head of Planning and Corporate Strategy.

Good morning, everyone, and thank you for joining our second quarter earnings conference call. I would like to note that the voices used in this presentation were generated using artificial intelligence. My name is Matias Valenzuela, head of planning and corporate strategy at Itau Chile, and I am joined today by our CEO, Andre Gailey, our CFO, Emiliano Muratore, and our chief economist, Andres Perez. I would also like to remind you that this presentation may include forward-looking statements. Itau Chile ADR

Good morning everyone and thank you for joining us today. Let me begin with the key developments of the quarter. We maintained strong commercial momentum with growth in both loans and deposits, outpacing the Chilean banking industry. Itau Chile ADR In Chile, improvements across our main revenue lines helped offset the more challenging conditions seen earlier in the year. At the consolidated level, Colombia's higher profitability made a meaningful contribution to our results. In June we received approval from the Competition Authority for the acquisition of CLAP followed by approval from the CMF in July. We expect to begin consolidating the business during the fourth quarter of this year. The acquisition will strengthen our payments and merchant acquiring capabilities. Broaden our presence across the merchant ecosystem and create new opportunities to deepen client relationships, generate fee income and leverage transactional data to develop new financial solutions. Itau Chile ADR Finally, Extel once again ranked us first for best research team in Chile. Itau BBA also secured the top position in both Latin American macro research and Latin American research. These recognitions underscore the quality of our teams, the depth of our analytical capabilities, and the value of the insights we provide to clients and investors across the region. Let me now turn to Colombia and provide more detail on the divestment of our retail banking business. Before the transaction, our Colombian retail business operated with a market share below 3%. This limited scale constrained our ability to dilute costs, acquire clients efficiently, and generate returns in line with our cost of capital. Even under a reasonable operating scenario, we estimated that the previous business model would generate an ROE of between 5% and 10%, compared with a cost of capital of approximately 15%. Since announcing the agreement in December 2025, we have executed each stage according to plan. On July 28, we completed a capital increase of approximately US$75 million in our Colombian operation. From a consolidated perspective, this represents an internal relocation of capital rather than an additional economic cost for the group. In July, we also recognized approximately US$158 million in non-recurring expenses associated with the transaction. Effective August 1st, approximately US$2,011 million in assets and US$1,499 million in liabilities were transferred at book value. As a result, we received approximately US$512 million in net cash proceeds, with no economic discount applied to the net assets transferred. while releasing close to US$1,185 million in risk-weighted assets. For the remainder of 2026, we expect to incur approximately US$18 million in additional nonrecurring expenses, mainly related to completing the separation and transition activities. As part of the separation, Itau entered into a transition services agreement, under which it will temporarily provide certain operational and support services through the end of 2026. This arrangement will ensure business continuity and facilitate an orderly migration following the transfer of the retail portfolio. Itau Chile ADR Itau Chile ADR Itau Chile ADR Itau Chile ADR The transaction creates value through three main channels. First, it reduces the capital allocated to a business generating returns structurally below our cost of capital. Second, it improves the expected return on the capital that remains invested in Colombia by concentrating resources on businesses where we have stronger capabilities and competitive advantages. It increases our financial flexibility and strengthens the management of capital, liquidity, and balance sheet risk. From a balance sheet perspective, the divestment reduces structural mismatches by better aligning the duration and composition of our assets and liabilities. With the longer duration retail portfolio transferred, the remaining corporate loan book will have a shorter duration allowing us to manage liquidity and interest rate exposure more efficiently. Itau Chile ADR Itau Chile ADR Under our current profitability assumptions, we estimate an economic payback period of approximately three to four years. Overall, this repositioning should result in a more focused, flexible, and structurally profitable Colombian franchise with a clearer path toward returns consistent with our cost of capital. With that, I will hand the floor to Andres Perez, who will walk us through the macroeconomic outlook for Chile and Colombia. Good morning, Andres.