CORPBANCA/FI | CIK:0001276671 |

ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory

 NOTE 22 EQUITY

The business combination (reverse acquisition) rules as established in IFRS3 require that the consolidated financial statements dated after the merger (from April 1, 2016 onward) to be prepared under the name of the legal acquirer (the acquiree for accounting purposes, or Corpbanca, the merged entity, which will take the name Itaú Corpbanca), and present the financial information of the legal acquiree (the acquirer for accounting purposes, or Banco Itaú Chile) from 2015, for comparative purposes, but for the April - December period present the numbers of Itaú - Corpbanca), with an adjustment that will be made retroactively in the legal capital of the acquirer for accounting purposes (Banco Itaú Chile) to reflect the legal capital of the acquiree for accounting purposes (Corpbanca). That adjustment is required to reflect the capital of the legal acquirer (the acquiree for accounting purposes).

a)        Movement in shareholders’ equity accounts (attributable to equity holders of the Bank)

 As of December 31, 2017 and 2016, the Bank’s issued shares are represented by the following detail, Ordinary shares authorized, subscribed and paid, with no par value, detailed below:

i.             Purchases and sales of Bank Shares.

As of December 31, 2017 and 2016, there were no purchase or sale transactions by the Bank involving its own shares.

ii.          Subscribed and paid shares.

2017

As of December 31, 2017, the Bank’s paid capital was represented by 512,406,760,091 subscribed and paid common shares with no par value, totaling MCh$1,862,826.

2016(19)

As of December 31, 2016, the Bank’s paid capital was represented by 512,406,760,091 subscribed and paid common shares with no par value, totaling MCh$1,862,826.

On March 22, 2016, Banco Itaú Chile’s capital was increased by MCh$392,813, through the subscription of 710,477 of the Bank’s single-series shares with no par value (equivalent to 57,008,875,206 shares of the merged bank based on the exchange ratio for the business combination), which were subscribed and paid by ITB Holding Brasil Participações Ltda., a wholly owned subsidiary of Itaú Unibanco Holding S.A., within the framework of the merger of Banco Itaú Chile and Corpbanca and in compliance with the “Transaction Agreement” signed on January 29, 2014.

(19) The accounting acquiree, Corpbanca, made a capital increase of MCh$401,424 in 2016, as a result of the capitalization of the reserves generated by over-price paid in share placement (registered since 2014).

iii.       Profit distribution.

2017

At an ordinary meeting of the shareholders of Banco Itaú Chile on March 27, 2017, shareholders agreed to distribute MCh$618 in earnings, representing 30% of profit for the year 2016.

2016(20)

At an ordinary meeting of the shareholders of Banco Itaú Chile on March 11, 2016, shareholders agreed to distribute MCh$52,168 in earnings, representing 50% of profit for the year 2015.

b)        List of major shareholders.

As of December 31, 2017, the shareholder composition was as follows:

(*) The controlling group Itaú Unibanco Holding S.A. has a total interest of 36.06%.

 (**) CorpGroup has an interest of 30.65%, which includes 182,125,023 shares of Saga under custody.

As of December 31, 2016 the shareholder composition was as follows:

(20) The accounting acquiree, Corpbanca, with respect to its profits for the year 2015, at the Ordinary Shareholders’ Meeting held on March 11, 2016, agreed to distribute earnings of MCh$100,886 corresponding to 50% of the profit in addition to retained earnings, to distribute MCh$3,196, equivalent to $0.3058171 per share.

(*) The controlling group Itaú Unibanco Holding S.A. has a total interest of 35.71%.

(**) CorpGroup has an interest of 31.00%, which includes 182,125,023 shares of Saga under custody.

c)         Dividends

The distribution of dividends of the Bank was as follows(21):

(*) This corresponds to the total number of shares of Banco Itaú Chile restated based on the exchange ratio for the business combination that gave rise to Itaú-Corpbanca.

(21) Figures are presented as required by local regulations.

d)        Basic and diluted earnings.

As of the years ended December 31, 2017 and 2016, basic earnings and diluted earnings, attributable to the equity holders of the bank, were as follows:

e)         Reserves presented in other comprehensive income.

Fair Value Reserve: This includes accumulated net changes in the fair value of investments available for sale until the investment is disposed of or there is a significant or prolonged decline in value.

Translation Reserve: This includes the effects of converting the financial statements of the New York Branch and Colombian subsidiaries, whose functional currencies are the US dollar and Colombian peso, respectively, to the presentation currency of Banco Itaú Corpbanca (the Chilean peso).

Cash Flow Hedge Reserve: This includes the effects of hedges on the Bank’s exposure to variations in cash flows that are attributed to a particular risk related to a recognized asset and/or liability.

Foreign Investment Accounting Hedge Reserve: Corresponds to adjustments for hedges of net investments in foreign operations.

Defined Benefit Obligation Reserve: This includes the effects of complying with IAS 19.

f)          Other comprehensive income.

The following table presents movements in equity and income taxes attributable to the equity holders of the Bank for the years ended December 31, 2017, 2016 and 2015:

g)         Rollforward for the year ended (OCI).

(i) Rollforward for the year ended (OCI) — Available-for-sale.

(ii) Rollforward for the year ended (OCI) - Cash flow hedges.

ii) Rollforward for the year ended (OCI) - Cash flow hedges.

h)        Reserves.

This item is made up of Other Reserves not from profits(22) of MCh$843,097 and Reserves from profits(23) of MCh$451,011.

i)            Non-controlling interest:

This corresponds to the net amount of equity in the consolidated subsidiaries attributable to capital that does not belong, directly or indirectly, to the Bank, including the part of profit for the period that is attributed to them.

Non-controlling interest in the subsidiary’s equity and profit for the period is detailed as follows:

(22)  The amounts presented in this item correspond to the adjustments made as a result of the business combination between Banco Itaú Chile and Corpbanca.

(23)  Coming from Banco Itaú Chile.

Amounts recorded for non-controlling interest movement  were as follows:

The main subsidiary with non-controlling interest of Itaú Corpbanca, is the following:

Information representing the non-controlling interest of the above-named company, before consolidation and elimination adjustments was as follows:

j)           Consolidated comprehensive income for the period was as follows: