5. Segment Reporting:
For management purposes, the Bank has organized its operations and commercial strategies into four business segments, which are defined in accordance with the type of products and services offered to target customers. These business segments are currently defined as follows:
Retail: This segment focuses on individuals and small and medium-sized companies with annual sales up to UF 70,000, where the product offering focuses primarily on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans.
Wholesale: This segment focused on corporate clients and large companies, whose annual revenue exceed UF 70,000, where the product offering focuses primarily on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases.
Treasury and money market operations:
This segment includes revenue associated with managing the Bank’s balance sheet (currencies, maturities and interest rates) and liquidity, including financial instrument and currency trading on behalf of the Bank itself.
Transactions on behalf of customers carried out by the Treasury are reflected in the respective aforementioned segments. These products are highly transaction-focused and include foreign exchange transactions, derivatives and financial instruments in general.
Subsidiaries: Corresponds to companies and corporations controlled by the Bank, where income is obtained individually by the respective subsidiary. The companies that comprise this segment are:
|
· |
Banchile Administradora General de Fondos S.A. |
|
· |
Banchile Asesoría Financiera S.A. |
|
· |
Banchile Corredores de Seguros Ltda. |
|
· |
Banchile Corredores de Bolsa S.A. |
|
· |
Banchile Securitizadora S.A. |
|
· |
Socofin S.A. |
The financial information used to measure the performance of the Bank’s business segments is not necessarily comparable with similar information from other financial institutions because it is based on internal reporting policies. The accounting policies used to prepare the Bank’s operating segment information are similar to those described in Note 2, “Summary of Significant Accounting Policies”. The Bank obtains the majority of its income from: interest, revaluations and fees, discounted the credit cost and expenses. Management is mainly focused on these concepts in its evaluation of segment performance and decision-making regarding goals and allocation of resources for each unit individually. Although the results of the segments reconcile with those of the Bank at total level, this is not necessarily the case for all concepts on an individual basis, since the management is measured and controlled in individual form and additionally applies the following criteria:
|
· |
The net interest margin of loans and deposits is measured on an individual transaction and individual client basis. For that purposes, it is considered the volume of each operation and its contribution margin, that at the same time corresponds to the difference between effective rate of the client and the internal transfer price established according to terms and currency of each operation. |
|
· |
The internal performance profitability system considers capital allocation in each segment in accordance to the Basel guidelines. |
|
· |
Operating expenses are distributed at each area level. The Bank allocates all of its indirect operating costs to each business segment by utilizing a different cost driver in order to allocate such costs to the specific segment. |
The Bank did not enter into transactions with any particular customer or third party that collectively generated more than 10% of the Bank’s total income in 2016 and 2017.
Taxes are managed at the consolidated level and are not allocated to business segments.
|
|
|
As of December 31, 2015 |
|
||||||||||||||
|
|
|
Retail |
|
Wholesale |
|
Treasury |
|
Subsidiaries (*) |
|
Subtotal |
|
Reclassifications |
|
|
|
Total |
|
|
|
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
Note |
|
MCh$ |
|
|
Net interest income |
|
840,451 |
|
355,783 |
|
27,942 |
|
(6,555 |
) |
1,217,621 |
|
10,667 |
|
|
|
1,228,288 |
|
|
Net fees and commissions income |
|
156,936 |
|
43,853 |
|
(2,163 |
) |
116,145 |
|
314,771 |
|
(8,792 |
) |
|
|
305,979 |
|
|
Other operating income |
|
25,199 |
|
64,861 |
|
10,355 |
|
24,805 |
|
125,220 |
|
1,996 |
|
|
|
127,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
1,022,586 |
|
464,497 |
|
36,134 |
|
134,395 |
|
1,657,612 |
|
3,871 |
|
(1) |
|
1,661,483 |
|
|
Provisions for loan losses |
|
(229,669 |
) |
(73,510 |
) |
— |
|
117 |
|
(303,062 |
) |
56,840 |
|
(2) |
|
(246,222 |
) |
|
Depreciation and amortization |
|
(21,310 |
) |
(5,364 |
) |
(267 |
) |
(2,596 |
) |
(29,537 |
) |
(2,285 |
) |
(3) |
|
(31,822 |
) |
|
Other operating expenses |
|
(471,529 |
) |
(138,638 |
) |
(4,770 |
) |
(93,021 |
) |
(707,958 |
) |
13,502 |
|
(4) |
|
(694,456 |
) |
|
Income attributable to associates |
|
2,521 |
|
716 |
|
34 |
|
401 |
|
3,672 |
|
(429 |
) |
|
|
3,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
302,599 |
|
247,701 |
|
31,131 |
|
39,296 |
|
620,727 |
|
71,499 |
|
|
|
692,226 |
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
(61,730 |
) |
(20,591 |
) |
(5) |
|
(82,321 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after income taxes |
|
|
|
|
|
|
|
|
|
558,997 |
|
50,908 |
|
|
|
609,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
14,350,327 |
|
11,926,049 |
|
4,383,945 |
|
520,385 |
|
31,180,706 |
|
(252,302 |
) |
|
|
30,928,404 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
223,019 |
|
(93,827 |
) |
|
|
129,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
31,403,725 |
|
(346,129 |
) |
(6) |
|
31,057,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
9,726,286 |
|
9,934,304 |
|
8,605,278 |
|
373,056 |
|
28,638,924 |
|
(781,367 |
) |
|
|
27,857,557 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
24,714 |
|
— |
|
|
|
24,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
28,663,638 |
|
(781,367 |
) |
(7) |
|
27,882,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) On December 30, 2016, the dissolution and merger of the subsidiary Promarket S.A. was announced. As such, and for the purpose of adequate comparison in this disclosure, the amounts for the retail segment for the year 2015 have been restated.
Reclassifications and adjustments to conform IFRS
|
(1) |
The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(11,257). The total effect of IFRS adjustments is MCh$15,128 which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. |
|
(2) |
The total effect relates to IFRS adjustments of MCh$56,840, which mainly stems from differing allowances for loan losses. |
|
(3) |
The total effect relates to IFRS adjustments of MCh$(2,285), which stems from the amortization of intangibles and depreciation of property and equipment acquired through business combinations. |
|
(4) |
The total effect due to the elimination adjustments to conform other operating expenses is MCh$11,257. The total effect of IFRS adjustments is MCh$2,245, which represents reversal of write-offs of assets received in lieu of payments. |
|
(5) |
The total effect relates to IFRS adjustments of MCh$(20,591), which stems from deferred taxes. |
|
(6) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(147,013). The total effect of IFRS adjustments in assets is MCh$(199,116), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects. |
|
(7) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(147,013). The total effect of IFRS adjustments in liabilities is MCh$(634,354), which mainly stems from provision for minimum dividends and differing allowances for loan losses. |
|
|
|
As of December 31, 2016 |
|
||||||||||||||
|
|
|
Retail |
|
Wholesale |
|
Treasury |
|
Subsidiaries |
|
Subtotal |
|
Reclassifications |
|
|
|
Total |
|
|
|
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
Note |
|
MCh$ |
|
|
Net interest income |
|
873,669 |
|
346,829 |
|
4,207 |
|
(4,337 |
) |
1,220,368 |
|
6,365 |
|
|
|
1,226,733 |
|
|
Net fees and commissions income |
|
170,529 |
|
42,202 |
|
(2,473 |
) |
121,383 |
|
331,641 |
|
(10,370 |
) |
|
|
321,271 |
|
|
Other operating income |
|
93,135 |
|
33,322 |
|
44,754 |
|
23,923 |
|
195,134 |
|
(25,579 |
) |
|
|
169,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
1,137,333 |
|
422,353 |
|
46,488 |
|
140,969 |
|
1,747,143 |
|
(29,584 |
) |
(1) |
|
1,717,559 |
|
|
Provisions for loan losses |
|
(301,491 |
) |
(8,243 |
) |
— |
|
(1 |
) |
(309,735 |
) |
50,472 |
|
(2) |
|
(259,263 |
) |
|
Depreciation and amortization |
|
(25,229 |
) |
(4,912 |
) |
(172 |
) |
(2,976 |
) |
(33,289 |
) |
(2,286 |
) |
(3) |
|
(35,575 |
) |
|
Other operating expenses |
|
(504,041 |
) |
(152,859 |
) |
(5,596 |
) |
(104,847 |
) |
(767,343 |
) |
15,871 |
|
(4) |
|
(751,472 |
) |
|
Income attributable to associates |
|
3,078 |
|
914 |
|
79 |
|
442 |
|
4,513 |
|
(499 |
) |
|
|
4,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
309,650 |
|
257,253 |
|
40,799 |
|
33,587 |
|
641,289 |
|
33,974 |
|
|
|
675,263 |
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
(89,040 |
) |
(11,172 |
) |
(5) |
|
(100,212 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after income taxes |
|
|
|
|
|
|
|
|
|
552,249 |
|
22,802 |
|
|
|
575,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
15,198,634 |
|
11,526,685 |
|
4,121,333 |
|
535,727 |
|
31,382,379 |
|
(208,655 |
) |
|
|
31,173,724 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
288,370 |
|
(104,790 |
) |
|
|
183,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
31,670,749 |
|
(313,445 |
) |
(6) |
|
31,357,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
10,234,712 |
|
10,277,326 |
|
7,880,847 |
|
390,453 |
|
28,783,338 |
|
(733,708 |
) |
|
|
28,049,630 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
— |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
28,783,338 |
|
(733,708 |
) |
(7) |
|
28,049,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications and adjustments to conform IFRS
|
(1) |
The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(12,349). The total effect of IFRS adjustments is MCh$(17,235) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. |
|
(2) |
The total effect relates to IFRS adjustments of MCh$50,472, which mainly stems from differing allowances for loan losses. |
|
(3) |
The total effect relates to IFRS adjustments of MCh$(2,286), which stems from the amortization of intangibles and depreciation of property and equipment acquired through business combinations. |
|
(4) |
The total effect due to the elimination adjustments to conform other operating expenses is MCh$12,349. The total effect of IFRS adjustments is MCh$3,522, which represents reversal of write-offs of assets received in lieu of payments. |
|
(5) |
The total effect relates to IFRS adjustments of MCh$(11,172), which stems from deferred taxes. |
|
(6) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(137,201). The total effect of IFRS adjustments in assets is MCh$(176,244), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects. |
|
(7) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(137,201). The total effect of IFRS adjustments in liabilities is MCh$(596,507), which mainly stems from provision for minimum dividends and differing allowances for loan losses. |
|
|
|
As of December 31, 2017 |
|
||||||||||||||
|
|
|
Retail |
|
Wholesale |
|
Treasury |
|
Subsidiaries |
|
Subtotal |
|
Reclassifications |
|
|
|
Total |
|
|
|
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
MCh$ |
|
Note |
|
MCh$ |
|
|
Net interest income |
|
914,395 |
|
321,178 |
|
(3,772 |
) |
(4,336 |
) |
1,227,465 |
|
7,230 |
|
|
|
1,234,695 |
|
|
Net fees and commissions income |
|
184,045 |
|
43,447 |
|
(4,306 |
) |
135,987 |
|
359,173 |
|
(11,499 |
) |
|
|
347,674 |
|
|
Other operating income |
|
36,003 |
|
35,201 |
|
38,931 |
|
26,884 |
|
137,019 |
|
(31,846 |
) |
|
|
105,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
1,134,443 |
|
399,826 |
|
30,853 |
|
158,535 |
|
1,723,657 |
|
(36,115 |
) |
(1) |
|
1,687,542 |
|
|
Provisions for loan losses |
|
(256,262 |
) |
21,415 |
|
— |
|
(135 |
) |
(234,982 |
) |
13,727 |
|
(2) |
|
(221,255 |
) |
|
Depreciation and amortization |
|
(27,676 |
) |
(4,540 |
) |
(141 |
) |
(2,894 |
) |
(35,251 |
) |
(2,285 |
) |
(3) |
|
(37,536 |
) |
|
Other operating expenses |
|
(507,913 |
) |
(153,218 |
) |
(5,022 |
) |
(102,281 |
) |
(768,434 |
) |
21,614 |
|
(4) |
|
(746,820 |
) |
|
Income attributable to associates |
|
4,006 |
|
1,339 |
|
161 |
|
551 |
|
6,057 |
|
(546 |
) |
|
|
5,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
346,598 |
|
264,822 |
|
25,851 |
|
53,776 |
|
691,047 |
|
(3,605 |
) |
|
|
687,442 |
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
(115,034 |
) |
(327 |
) |
(5) |
|
(115,361 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after income taxes |
|
|
|
|
|
|
|
|
|
576,013 |
|
(3,932 |
) |
|
|
572,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
16,099,926 |
|
10,558,278 |
|
5,469,829 |
|
637,860 |
|
32,765,893 |
|
(388,753 |
) |
|
|
32,377,140 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
290,432 |
|
(106,135 |
) |
|
|
184,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
33,056,325 |
|
(494,888 |
) |
(6) |
|
32,561,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
10,380,250 |
|
10,272,607 |
|
8,815,056 |
|
479,244 |
|
29,947,157 |
|
(934,521 |
) |
|
|
29,012,636 |
|
|
Current and deferred taxes |
|
|
|
|
|
|
|
|
|
3,453 |
|
— |
|
|
|
3,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
29,950,610 |
|
(934,521 |
) |
(7) |
|
29,016,089 |
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Reclassifications and adjustments to conform IFRS
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(1) |
The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(14,387). The total effect of IFRS adjustments is MCh$(21,728) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. |
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(2) |
The total effect relates to IFRS adjustments of MCh$13,727, which mainly stems from differing allowances for loan losses. |
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(3) |
The total effect relates to IFRS adjustments of MCh$(2,285), which stems from the amortization of intangibles and depreciation of property and equipment acquired through business combinations. |
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(4) |
The total effect due to the elimination adjustments to conform other operating expenses is MCh$14,387. The total effect of IFRS adjustments is MCh$7,227, which represents reversal of write-offs of assets received in lieu of payments. |
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(5) |
The total effect relates to IFRS adjustments of MCh$(327), which stems from deferred taxes. |
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(6) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(232,137). The total effect of IFRS adjustments in assets is MCh$(262,751), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects. |
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(7) |
The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(232,137). The total effect of IFRS adjustments in liabilities is MCh$(702,384), which mainly stems from provision for minimum dividends and differing allowances for loan losses. |