h) Operating segments
Itaú Corpbanca provides financial information by operating segment in conformity with IFRS 8 “Operating
Segments” in order to make disclosures that enable financial statement users to evaluate the nature and financial effects of the business activities in which the Bank engages and the economic environments in which it operates and to allow user to:
· Better understand the Bank’s performance;
· Better evaluate the Bank’s future cash flow projections;
· Form better opinions regarding the Bank as a whole.
To comply with IFRS 8, Itaú Corpbanca identifies operating segments, including the Bank’s operations in Chile and Colombia, that the Executive Committee (Chief Operating Decision Market or “CODM” uses to analyze and make decisions regarding operations, finance and investment decisions, based on the following elements:
i. The nature of the products and services;
ii. The type of class of customer for their products and services;
iii. The methods used to distribute their products or provide their services; and
iv. If applicable, the nature of the regulatory environment, for example, banking, insurance or public utilities.
The Executive Committee manages these segments through the use of its own internal profitability reporting system and reviews its segments based on the operational management result and uses indicators of efficiency, profitability and others to evaluate performance and allocate its resources. In addition, a geographical disclosure about the operations presented by the Bank in Colombia and Chile is added.
More information on each segment is presented in Note 4 “Segment Information.”