CORPBANCA/FI | CIK:0001276671 |

ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

 NOTE 4 SEGMENT INFORMATION

The segment reporting is determined by the Bank on the basis of its operating segments (Chile(14) and Colombia), which are mainly differentiated by the risks and returns that affect them(15).

The reportable segments and the criteria used to inform the Bank’s highest authority in the decision-making process of the transaction are in accordance with IFRS 8 “Operating Segments.”

a)        Segments

The descriptions of each operating segment are as follows:

i) Chile

The Bank’s business activities in Chile take place mainly in the domestic market. It has strategically aligned its operations into the following five business areas that are related directly to its customers’ needs and the Bank’s strategy: 1) Wholesale Banking (a) Corporate; Real Estate and Construction and (b) Large Companies; 2) Retail Banking (a) Itaú Private Bank, (b) Itaú Companies, (c) Itaú Personal Bank (d) Itaú and (e) Banco Condell; 3) Treasury; 4) Corporate; and 5) Other Financial Services.

The Bank manages these business areas using a reporting system for internal profitability. The operating results are reviewed regularly by the entity’s highest decision-making authority for operating decisions as one single cash generating unit, to decide about resource allocation for the segment and evaluate its performance.

The Bank did not enter into transactions with a particular customer or third party that exceeded 10% of its total income in 2017, 2016 and 2015.

ii) Colombia

Colombia has been identified as a separate operating segment based on the business activities. Its operating results are reviewed regularly by the entity’s highest decision-making authority for operating decisions as one single CGU, to decide about resource allocation for the segment and evaluate its performance. Separate financial information is available for this segment.

The commercial activities of this segment are carried out by Banco Itaú Corpbanca Colombia S.A. and its subsidiaries.

b)        Geographical information

The segments reported by Itaú Corpbanca, disclose revenue from ordinary activities from external clients:

(i)        attributed to the entity’s country of domicile and

(ii)     attributed, in aggregate, to all foreign countries in which the entity obtains revenue.

When revenue from external customers attributed to a particular foreign country is significant, it is disclosed separately.

The Group´s operations in its two main geographic areas (Chile(16) and Colombia(17)) are represented in the following table:

(14)  Includes the New York Branch.

(15)  The segments presented here correspond to the segments used by the merged Bank. Information for 2015 (referring to Banco Itaú Chile) was presented using the current segmenting criteria.

(16)  Includes the New York Branch.

(17)  This segment includes operations carried out by Itaú (Panamá) S.A., and Itaú Casa de Valores (Panamá).

c)         Information on assets, liabilities and income

Segment information on assets and liabilities is presented as of December 31, 2017 and 2016; segment information on income is presented as of December 31, 2017, 2016 and 2015.

c.1 Assets and Liabilities

(*)This includes goodwill generated in business combinations between Banco Itaú Chile and Corpbanca totaling MCh$1,126,663(18) as of December 31, 2017 (MCh$1,145,308 in 2016).

(18)  In order to verify the impairment, the goodwill acquired in the business combination was allocated, from the date of acquisition, between each of the acquiring entity’s CGUs or groups of CGUs, taking into account expected synergies of the business combination, regardless of whether other assets or liabilities of the acquired entity are allocated to those units or groups of units, in the case of the Bank: Chile MCh$904,868 (MCh$904,868  in 2016) and Colombia MCh$221,795 (MCh$240,440 in 2016), see Note 30.

c.2 Income