39. Related Party Transactions:
Related parties are considered to be those natural or legal persons who are in positions to directly or indirectly have significant influence through their ownership or management of the Bank and its subsidiaries.
According to the above, the Bank considers natural or legal persons to be related parties when they have direct participation or through third parties on the Bank ownership, where such participation exceeds 5% of the shares, and people who, regardless of ownership, have authority and responsibility for planning, management and control of the activities of the Bank or its subsidiaries. Related parties are also companies in which the parties related by ownership or management of the Bank have share ownership that equals to or exceeds 5%, or in which they hold a position of director, general manager or equivalent position.
(a) Loans to related parties:
The following table details loans and accounts receivable and contingent loans, corresponding to related entities.
|
|
|
Production and Services |
|
Investment |
|
Individuals (***) |
|
Total |
|
||||||||
|
|
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
149,838 |
|
243,989 |
|
165,475 |
|
169,403 |
|
8,296 |
|
8,871 |
|
323,609 |
|
422,263 |
|
|
Residential mortgage loans |
|
— |
|
— |
|
— |
|
— |
|
31,921 |
|
33,695 |
|
31,921 |
|
33,695 |
|
|
Consumer loans |
|
— |
|
— |
|
— |
|
— |
|
6,496 |
|
7,265 |
|
6,496 |
|
7,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
149,838 |
|
243,989 |
|
165,475 |
|
169,403 |
|
46,713 |
|
49,831 |
|
362,026 |
|
463,223 |
|
|
Allowance for loan losses |
|
(622 |
) |
(988 |
) |
(347 |
) |
(394 |
) |
(293 |
) |
(241 |
) |
(1,262 |
) |
(1,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans |
|
149,216 |
|
243,001 |
|
165,128 |
|
169,009 |
|
46,420 |
|
49,590 |
|
360,764 |
|
461,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees and sureties |
|
4,941 |
|
4,527 |
|
8,087 |
|
21,146 |
|
— |
|
— |
|
13,028 |
|
25,673 |
|
|
Letters of credits |
|
165 |
|
294 |
|
— |
|
1,170 |
|
— |
|
— |
|
165 |
|
1,464 |
|
|
Foreign letters of credits |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Banks guarantees |
|
24,095 |
|
34,457 |
|
19,764 |
|
23,071 |
|
— |
|
— |
|
43,859 |
|
57,528 |
|
|
Undrawn credit lines |
|
55,607 |
|
53,151 |
|
12,928 |
|
13,907 |
|
15,897 |
|
15,179 |
|
84,432 |
|
82,237 |
|
|
Other contingencies loans |
|
— |
|
— |
|
2,000 |
|
— |
|
— |
|
— |
|
2,000 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total contingent loans |
|
84,808 |
|
92,429 |
|
42,779 |
|
59,294 |
|
15,897 |
|
15,179 |
|
143,484 |
|
166,902 |
|
|
Provision for contingencies loans |
|
(190 |
) |
(217 |
) |
(104 |
) |
(81 |
) |
(32 |
) |
(48 |
) |
(326 |
) |
(346 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans, net |
|
84,618 |
|
92,212 |
|
42,675 |
|
59,213 |
|
15,865 |
|
15,131 |
|
143,158 |
|
166,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount covered by guarantee: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
|
19,083 |
|
27,928 |
|
81,419 |
|
53,835 |
|
48,272 |
|
53,181 |
|
148,774 |
|
134,944 |
|
|
Warrant |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Pledge |
|
2,900 |
|
1,417 |
|
— |
|
— |
|
3 |
|
— |
|
2,903 |
|
1,417 |
|
|
Others (****) |
|
20,607 |
|
39,022 |
|
14,533 |
|
14,186 |
|
1,743 |
|
2,175 |
|
36,883 |
|
55,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total collateral |
|
42,590 |
|
68,367 |
|
95,952 |
|
68,021 |
|
50,018 |
|
55,356 |
|
188,560 |
|
191,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Operating companies are legal entities which comply with the following conditions:
(i) They engage in operating activities and generate a separable flow of income,
(ii) Less than 50% of their assets are trading securities or investments.
(**) Investment companies include those legal entities that do not comply with the conditions for operating companies and are profit-oriented.
(***) Individuals include key members of the management, who directly or indirectly possess the authority and responsibility of planning, administrating and controlling the activities of the organization, including directors. This category also includes their family members who are expected to have an influence or to be influenced by such individuals in their interactions with the organization.
(****) These guarantees correspond mainly to shares and other financial guarantees.
(b) Other assets and liabilities with related parties:
|
|
|
2016 |
|
2017 |
|
|
|
|
MCh$ |
|
MCh$ |
|
|
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
51,222 |
|
57,563 |
|
|
Transactions in the course of collection |
|
7,537 |
|
13,249 |
|
|
Derivative instruments |
|
147,046 |
|
323,186 |
|
|
Financial assets |
|
15,115 |
|
— |
|
|
Other assets |
|
50,691 |
|
114,536 |
|
|
|
|
|
|
|
|
|
Total |
|
271,611 |
|
508,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Demand deposits |
|
194,503 |
|
173,715 |
|
|
Transactions in the course of payment |
|
5,637 |
|
16,116 |
|
|
Cash collateral on securities lent and repurchase agreements |
|
34,710 |
|
25,227 |
|
|
Savings accounts and time deposits |
|
267,925 |
|
169,322 |
|
|
Derivative instruments |
|
151,398 |
|
370,356 |
|
|
Borrowings from financial institutions |
|
242,405 |
|
251,555 |
|
|
Other liabilities |
|
60,307 |
|
51,814 |
|
|
|
|
|
|
|
|
|
Total |
|
956,885 |
|
1,058,105 |
|
|
|
|
|
|
|
|
(c) Income and expenses from related party transactions:
|
|
|
2016 |
|
2017 |
|
||||
|
|
|
Income |
|
Expense |
|
Income |
|
Expense |
|
|
Type of income or expense recognized |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and revenue expenses |
|
19,354 |
|
15,941 |
|
28,140 |
|
9,332 |
|
|
Fees and commission income |
|
66,387 |
|
62,614 |
|
65,995 |
|
69,843 |
|
|
Net financial operating income |
|
|
|
|
|
|
|
|
|
|
Derivative instruments (*) |
|
33,814 |
|
42,898 |
|
33,540 |
|
97,416 |
|
|
Other financial operations |
|
— |
|
— |
|
1 |
|
— |
|
|
Provision for credit risk |
|
290 |
|
— |
|
— |
|
252 |
|
|
Operating expenses |
|
— |
|
85,979 |
|
— |
|
100,389 |
|
|
Other income and expenses |
|
458 |
|
32 |
|
3,723 |
|
56 |
|
(*) The outcome of derivative operations is presented net at each related counterparty level. Additionally, this line includes operations with local counterpart banks (unrelated) which have been novated by Comder Contraparte Central S.A. (Related entity) for centralized clearing purposes, which generated a net loss of Ch$96,075 million as of December 31, 2017 (net loss of Ch$31,649 million as of December 31, 2016).
(d) Payments to key management personnel:
|
|
|
2016 |
|
2017 |
|
|
|
|
MCh$ |
|
MCh$ |
|
|
Remunerations |
|
3,985 |
|
4,149 |
|
|
Short-term benefits |
|
4,502 |
|
3,302 |
|
|
Contract termination indemnity |
|
2,434 |
|
276 |
|
|
Stock−based benefits |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
Total |
|
10,921 |
|
7,727 |
|
|
|
|
|
|
|
|
|
|
|
N° of executives |
|
||
|
Position |
|
2016 |
|
2017 |
|
|
CEO |
|
1 |
|
1 |
|
|
CEOs of subsidiaries |
|
6 |
|
6 |
|
|
Division Managers |
|
14 |
|
12 |
|
|
|
|
|
|
|
|
|
Total |
|
21 |
|
19 |
|
|
|
|
|
|
|
|
(e) Directors’ expenses and remunerations:
|
|
|
Remunerations |
|
Fees for attending |
|
Fees for attending |
|
Consulting |
|
Total |
|
||||||||||
|
|
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
Name of Directors |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pablo Granifo Lavín |
|
543 |
(*) |
553 |
(*) |
49 |
|
53 |
|
388 |
|
395 |
|
— |
|
— |
|
980 |
|
1,001 |
|
|
Andrónico Luksic Craig |
|
169 |
|
172 |
|
11 |
|
8 |
|
— |
|
— |
|
— |
|
— |
|
180 |
|
180 |
|
|
Jorge Awad Mehech |
|
56 |
|
14 |
|
27 |
|
6 |
|
97 |
|
26 |
|
— |
|
— |
|
180 |
|
46 |
|
|
Jaime Estévez Valencia |
|
56 |
|
57 |
|
27 |
|
28 |
|
141 |
|
134 |
|
— |
|
— |
|
224 |
|
219 |
|
|
Gonzalo Menéndez Duque |
|
56 |
|
57 |
|
25 |
|
23 |
|
116 |
|
113 |
|
25 |
|
8 |
|
222 |
|
201 |
|
|
Francisco Pérez Mackenna |
|
56 |
|
57 |
|
19 |
|
23 |
|
61 |
|
75 |
|
— |
|
— |
|
136 |
|
155 |
|
|
Rodrigo Manubens Moltedo |
|
56 |
|
57 |
|
23 |
|
28 |
|
46 |
|
53 |
|
— |
|
— |
|
125 |
|
138 |
|
|
Thomas Fürst Freiwirth |
|
56 |
|
57 |
|
20 |
|
19 |
|
37 |
|
36 |
|
— |
|
— |
|
113 |
|
112 |
|
|
Jorge Ergas Heymann |
|
56 |
|
14 |
|
13 |
|
6 |
|
44 |
|
19 |
|
— |
|
— |
|
113 |
|
39 |
|
|
Jean-Paul Luksic Fontbona |
|
56 |
|
57 |
|
7 |
|
12 |
|
— |
|
— |
|
— |
|
— |
|
63 |
|
69 |
|
|
Alfredo Ergas Segal |
|
— |
|
43 |
|
— |
|
20 |
|
— |
|
49 |
|
— |
|
— |
|
— |
|
112 |
|
|
Andrés Ergas Heymann |
|
— |
|
43 |
|
— |
|
20 |
|
— |
|
41 |
|
— |
|
— |
|
— |
|
104 |
|
|
Other directors of subsidiaries |
|
— |
|
— |
|
— |
|
— |
|
150 |
|
129 |
|
— |
|
— |
|
150 |
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
1,160 |
|
1,181 |
|
221 |
|
246 |
|
1,080 |
|
1,070 |
|
25 |
|
8 |
|
2,486 |
|
2,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) It includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda. of Ch$18 million (Ch$17 million in 2016).
(*) It includes a provision of Ch$380 million (Ch$374 million in 2016) for an incentive subject to achieving the Bank’s forecasted earnings.
Fees paid for advisory services to the Board of Directors amount to Ch$334 million (Ch$532 million in 2016).
Travel and other related expenses amount to Ch$116 million (Ch$146 million in 2016).