CORPBANCA/FI | CIK:0001276671 | 3

  • Filed: 5/4/2018
  • Entity registrant name: CORPBANCA/FI (CIK: 0001276671)
  • Generator: S2 Filings
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1276671/000161577418003331/0001615774-18-003331-index.htm
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  • ifrs-full:DisclosureOfRelatedPartyExplanatory

    NOTE 32 RELATED PARTY TRANSACTIONS

     

    As defined in IAS 24, a related party is: (a) a person or a close member of that person’s family related to a reporting entity if that person (i) has control or joint control of the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.  (b) An entity is related to a reporting entity if (i) the entity and the reporting entity are members of the same group; (ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) both entities are joint ventures of the same third party; (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) the entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity; (vi) the entity is controlled or jointly controlled by a person identified in (a) or; (vii) a person identified in (a)(i) has significant influence  over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

     

    Transactions that the Bank entered into with related parties as of December 31, 2017, 2016 and 2015 are specified below:

     

    a)        Loans granted to related parties

     

    Loan granted to related parties as of December 31, 2017 and 2016 are as follows:

     

        Operating
    Companies
      Investment
    Companies
      Individuals  
    As of December 31, 2017   MCh$   MCh$   MCh$  
    Loan and receivables to customer              
    Commercial Loans   113,202   79,715   3,730  
    Mortgages Loans       19,273  
    Consumer Loans       5,081  
    Loans and receivables to customers - gross   113,202   79,715   28,084  
    Provision for loan losses   (1,323 ) (5,688 ) (98 )
    Loans and receivables to customers, net   111,879   74,027   27,986  

     

        Operating
    Companies
      Investment
    Companies
      Individuals  
    As of December 31, 2016    MCh$   MCh$   MCh$  
    Loan and receivables to customer              
    Commercial Loans   117,362   93,170   3,070  
    Mortgages Loans       19,568  
    Consumer Loans       3,493  
    Loans and receivables to customers - gross   117,362   93,170   26,131  
    Provision for loan losses   (2,398 ) (396 ) (197 )
    Loans and receivables to customers, net   114,964   92,774   25,934  

     

    b)        Other transactions with related parties.

     

    For the years ended December 31, 2017, 2016 and 2015, the Bank entered into the following transactions with related parties for amounts exceeding UF 1,000.

     

    As of December 31, 2017:

     

                Balance Assets   Effect on statement
    of Income
     
                (Liability)   Income   (Expense)  
    Company   Description   Notes   MCh$   MCh$   MCh$  
    Redbanc S.A.   Automatic teller machine administration           3,355  
    Transbank S.A.   Credit Card processing           14,586  
    Combanc S.A.   Data transmission services           378  
    Itaú Chile Cía. de Seguros de Vida S.A.   Life insurance         7,819   948  
    Asesorias Cumelen S.A.   Advisory services            
    Corp Research S.A.   Management advisory services           453  
    Recuperadora de Créditos S.A.   Credit collection            
    Itaú Chile Inv. Serv. y Administración S.A.   Leases           650  
    Compañia de Seguros Confuturo S. A. (*)   Insurance            
    Instituto de Estudios Bancarios Guillermo Subercaseaux   Education services           143  
    Opina S.A.   Publishing services            
    VIP Asesorias y Servicios Integrales Ltda.   Advisory services           415  
    Everis Chile S.A.   Advisory services           607  
    CAI Gestion Inmobiliaria S.A.   Commercial home (Department stores)           115  
    Compañia de Seguros Corp Seguros S.A (*)   Insurance            
    Universidad Andres Bello   Education services            
    Promoservice S.A.   Promotion services           267  
    Comder Contraparte Central S.A   Banking services           1,067  
    Sinacofi S.A (*)   Data transmission services            
    Operadora de Tarjeta de Crédito Nexus S.A.   Credit Card processing           3,836  
    Pulso Editorial S.A   Publishing services           509  
    Inmobiliaria Edificio Corpgroup S.A.   Corporate office rent and building cost           4,725  
    Grupo de Radios Dial S.A.   Publicity            
    Hotel Corporation of Chile S.A.   Accomodation, events           265  
    Corp Imagen y diseños S.A.   Other services           196  
    Asesorias e Inversiones Rapelco Limitada S.A.   Other services            
    Corp Group Holding Inversiones Limitada   Advisory services           398  
    SMU S.A., Rendic Hnos. S.A.   Prepaid rent for space for ATMs   15   7,960     2,221  
    Inversiones Corp Group Interhold Ltda.   Management advisory services           3,097  
    Bcycle Latam SPA   Other services           552  

     

    (*)These companies at the end of December 2017 are no considered related parties.

     

    As of December 31, 2016

     

                Balance Assets   Effect on statement
    of Income
     
                (Liability)   Income   (Expense)  
    Company   Description   Notes   MCh$   MCh$   MCh$  
    Redbanc S.A.   Automatic teller machine administration           3,754  
    Transbank S.A.   Credit Card processing           10,882  
    Combanc S.A.   Data transmission services           291  
    Itaú Chile Cía. de Seguros de Vida S.A.   Life insurance         5,653   2,782  
    Asesorias Cumelen S.A.   Advisory services           450  
    Corp Research S.A.   Management advisory services           443  
    Recuperadora de Créditos S.A.   Credit collection           540  
    Itaú Chile Inv. Serv. y Administración S.A.   Leases           422  
    Compañia de Seguros Confuturo S. A.   Insurance           1,418  
    Instituto de Estudios Bancarios Guillermo Subercaseaux   Education services           69  
    Opina S.A.   Publishing services           110  
    VIP Asesorias y Servicios Integrales Ltda.   Advisory services           185  
    Itaú Unibanco S.A.   Advisory services            
    CAI Gestion Inmobiliaria S.A.   Commercial home (Department stores)           90  
    Compañia de Seguros Corp Seguros S.A   Insurance           3,263  
    Universidad Andres Bello   Education services           32  
    Promoservice S.A.   Promotion services           1,431  
    Comder Contraparte Central S.A   Banking services           697  
    Sinacofi S.A   Data transmission services           918  
    Operadora de Tarjeta de Crédito Nexus S.A.   Credit Card processing           1,896  
    Pulso Editorial S.A   Publishing services           521  
    Inmobiliaria Edificio Corpgroup S.A.   Corporate office rent and building cost           5,010  
    Grupo de Radios Dial S.A.   Publicity           107  
    Hotel Corporation of Chile S.A.   Accomodation, events           64  
    Corp Imagen y diseños S.A.   Other services           82  
    Asesorias e Inversiones Rapelco Limitada S.A.   Other services           37  
    Corp Group Holding Inversiones Limitada   Advisory services           394  
    SMU S.A., Rendic Hnos. S.A.   Prepaid rent for space for ATMs   15   10,181     2,152  
    Inversiones Corp Group Interhold Ltda.   Management advisory services           2,172  

     

    The Bank, during 2016, purchased credit from Itaú Unibanco S.A. - Nassau Branch, for US$152,263,397 and Itaú Unibanco S.A. - New York Branch for US$25,875,000, through its New York Branch. This purchase was made at the par value of the loan portfolio and did not generate any impact on the financial statements.

     

    As of December 31, 2015

     

                Balance Assets   Effect on statement
    of Income
     
                (Liability)    Income   (Expense)  
    Company   Description   Notes   MCh$   MCh$   MCh$  
    Redbanc S.A.   Automatic teller machine administration           888  
    Transbank S.A.   Credit Card processing           5,572  
    Combanc S.A.   Data transmission services           164  
    Itaú Chile Cía. de Seguros   Insurance           2,168  
    Itaú Chile Cía. de Seguros   Credit collection           53  
    Itaú Chile Cía. de Seguros   Leases           15  
    Recuperadora de Créditos S.A.   Credit collection           1,030  
    Itaú Chile Inv. Serv. y Administración S.A.   Leases           587  
    Itaú Unibanco S.A.   Advisory services           6,610  

     

    These transactions were carried out at normal market prices prevailing on the days of the transactions.

     

    In accordance with IAS 24, the relationship of all listed companies in the above table falls under the category “other related parties.”

     

    c)         Donations

     

    As of December 31, 2017:

     

            Balance Assets   Effect on Statement of
    Income
     
            (Liability)   Income   (Expense)  
    Company   Description   MCh$   MCh$   MCh$  
    Fundación Corpgroup Centro Cultural   Donations       1,302  
    Fundación Descúbreme   Donations       200  
    Fundación Itaú   Donations       167  
    Fundación de Inclusión Social Aprendamos   Donations       5  

     

    As of December 31, 2016:

     

            Balance Assets   Effect on Statement of
    Income
     
            (Liability)   Income   (Expense)  
    Company   Description   MCh$   MCh$   MCh$  
    Fundación Corpgroup Centro Cultural   Donations       1,373  
    Fundación Descúbreme   Donations       173  
    Fundación Itaú   Donations       152  
    Fundación de Inclusión Social Aprendamos   Donations       5  

     

    As of December 31, 2015:

     

            Balance Assets   Effect on Statement of
    Income
     
            (Liability)   Income   (Expense)  
    Company   Description   MCh$   MCh$   MCh$  
    Fundación Itaú   Donations       336  

     

    d)        Other assets and liabilities with related parties

     

        As of December 31,  
        2017   2016   2015  
        MCh$   MCh$   MCh$  
    ASSETS   23,962   44,790   2,251  
    Derivative financial instruments   21,687   33,951   1,807  
    Other assets   2,275   10,839   444  
    LIABILITIES   185,056   249,741   33,866  
    Derivative financial instruments   1,935   14,227   6,270  
    Demand deposits   37,464   69,473   3,757  
    Deposits and other time deposits   131,409   155,251   23,645  
    Other liabilities   14,248   10,790   194  

     

    e)         Operating income / expenses from related party transactions

     

        2017   2016   2015  
        Income   Expenses   Income   Expenses   Income   Expenses  
    Type of recognized income or expense    MCh$   MCh$   MCh$   MCh$   MCh$   MCh$  
    Interest revenue   10,146   4,902   11,370   5,913   167   1,817  
    Income and expenses on fees and services   5,227     5,483     1,632    
    Gain and loss on trading   2,333   1,534   3,399   7,810   1,887   6,303  
    Operating support expense   537   99   324   438     40  
    Other income and expense   216   390   70   303   225   382  
    Total   18,459   6,925   20,646   14,464   3,911   8,542  

     

    f)          Contracts with related parties

     

    As of December 31, 2017:

     

    Company   Description
    Redbanc S.A.   Automatic teller machine administration
    CAI Gestión Inmobiliaria S.A.   Commercial home (Department stores)
    Unired S.A.   Payment management
    Corp Imagen y Diseño S.A   Other services
    Corp Research S.A   Advisory
    Copesa S.A.   Advertising
    Transbank S.A.   Credit card processing
    Inversiones Santa Valentina S.A.   Administrative consulting
    Combanc S.A.   Data transmission services
    Servicios de Información Avanzada Comercial Financiera S.A   Advisory
    Comder Contraparte Central S.A.   Advisory
    Promoservice S.A.   Promotion services
    Inversiones Corp Group Interhold S.A.   Administrative consulting
    Nexus S.A.   Credit card processing
    Rendic Hnos S.A.   Publishing services
    Corp Group Holding Inversiones Limitada   Advisory
    Inmobiliaria Edificio Corpgroup S.A.   Corporate office rent and building cost
    Empresa Periodística La Tercera S.A.   Publishing services

     

    As of December 31, 2016:

     

    Company   Description
    Redbanc S.A.   Automatic teller machine administration
    Pulso Editorial S.A   Publishing services
    SMU S.A., Rendic Hnos S.A.   Prepaid rent for space for ATMs
    CAI Gestión Inmobiliaria S.A.   Commercial home (Department stores)
    Unired S.A.   Payment management
    Corp Imagen y Diseño S.A   Other services
    Corp Research S.A   Advisory
    Compañía de Seguros Vida Corp S.A.   Brokerage of insurance premiums and office lease
    Instituto profesional AIEP S.A   Advertising services
    Distribución y Servicios META S.A.   Other services
    Transbank S.A.   Credit card processing
    Inversiones Santa Valentina S.A.   Administrative consulting
    Opina S.A.   Advisory
    Compañia de Seguros CorpSeguros S.A.   Office rent
    Itaú Chile Inversiones, Servicios y Administración S.A.   Office rent
    Combanc S.A.   Data transmission services
    Servicios de Información Avanzada Comercial Financiera S.A   Advisory
    Sinacofi S.A.   Data transmission services
    Comder Contraparte Central S.A.   Advisory
    Promoservice S.A.   Promotion services
    Inversiones Corp Group Interhold S.A.   Administrative consulting
    Operadora de Tarjeta de Crédito Nexus S.A.   Credit card processing
    Laborum.com Chile S.A.   Publishing services
    Corp Group Holding Inversiones Limitada   Advisory
    Inmobiliaria Edificio Corpgroup S.A.   Corporate office rent and building cost
    Empresa Periodística La Tercera S.A.   Publishing services

     

    As of December 31, 2015:

     

    Company   Description
    Itaú Chile Inversiones Servicios y Administración S.A.   Corporate office rent

     

    g)         Remunerations to members of the board and key management personnel

     

    Remunerations paid to key management personnel are set forth in the table below:

     

        As of December 31  
        2017   2016   2015  
        MCh$   MCh$   MCh$  
    Short term benefits   27,759   35,762   18,523  
    Post-employment benefits        
    Other long-term benefits       72  
    Severance indemnities   3,471   14,893    
    Total   31,230   50,655   18,595  

     

    2017

     

    The total remuneration received during the year 2017 by the managers and chief executives of Itaú Corpbanca amounted to MCh$21,505.

     

    2016

     

    The total remuneration received during the year 2016 by the managers and chief executives of Itaú Corpbanca amounted to MCh$23,878.

     

    2015

     

    The total remuneration received during the year 2016 by the managers and chief executives of Itaú Corpbanca amounted to MCh$18,523.

     

    h)        Key management personnel

     

    As of December 31, 2017, 2016 and 2015, the composition of the Bank’s key management personnel was as follows:

     

        Number of executives  
        As of December 31,  
    Position   2017   2016   2015  
    Directors   11   11    
    Chief Executive Officers-at the Subsidiaries   7   10   1  
    Corporative Manager   11   9   8  
    Area manager   94   102   3  
    Deputy Managers   155   149    
    Vicepresident   2   2    

     

    i)            Transactions with key management personnel

     

    During 2017, 2016 and 2015 transactions with key personnel were carried out as follows:

     

        Income  
        2017   2016   2015  
        MCh$   MCh$   MCh$  
    Credit Cards   390   307   392  
    Consumer loans   793   868   717  
    Commercial loans   815   700   646  
    Mortgages loans   3,541   3,554   4,337