CORPBANCA/FI | CIK:0001276671 | 3

  • Filed: 5/4/2018
  • Entity registrant name: CORPBANCA/FI (CIK: 0001276671)
  • Generator: S2 Filings
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    • ifrs-full:DisclosureOfLoansAndAdvancesToCustomersExplanatory

    NOTE 10 LOANS AND RECEIVABLES FROM CUSTOMERS

    a)        Loans and receivables from customers

     

    As of December 31, 2017 and 2016, the composition of the loan portfolio was as follows:

     

        Gross Assets   Allowances for loan losses      
        Normal
    Portfolio    		   Impaired
    Portfolio    		   Total   Individually
    Evaluated
    for
    impairment    		   Collectively
    evaluated for
    impairment    		   Total   Net carrying
    amount    		  
    As of December 31, 2017   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$  
    Commercial loans:                              
    Commercial Loans   10,345,995   770,081   11,116,076   263,552   117,666   381,218   10,734,858  
    Foreign trade loans   650,959   49,774   700,733   21,617   7,638   29,255   671,478  
    Current Account debtors   131,332   8,016   139,348   1,903   2,848   4,751   134,597  
    Factoring operations   140,375   363   140,738   270   93   363   140,375  
    Student loans   598,108   54,895   653,003   —   12,794   12,794   640,209  
    Leasing transactions (*)   851,882   88,907   940,789   10,445   6,837   17,282   923,507  
    Other loans and receivables   24,261   1,598   25,859   365   886   1,251   24,608  
    Subtotals   12,742,912   973,634   13,716,546   298,152   148,762   446,914   13,269,632  
    Mortgage loans:                              
    Letter of credit loans   44,432   2,968   47,400   —   140   140   47,260  
    Endorsable mutual mortgage loans   127,153   8,766   135,919   —   1,816   1,816   134,103  
    Other mutual mortgage loans   3,507,384   153,516   3,660,900   —   23,736   23,736   3,637,164  
    Leasing transactions (*)   272,544   9,591   282,135   —   8,960   8,960   273,175  
    Other loans and receivables   24,231   2,168   26,399   —   367   367   26,032  
    Subtotals   3,975,744   177,009   4,152,753   —   35,019   35,019   4,117,734  
    Consumer loans:                              
    Consumer loans   1,725,652   84,397   1,810,049   —   100,068   100,068   1,709,981  
    Current account debtors   193,325   14,176   207,501   —   11,840   11,840   195,661  
    Credit card   405,786   15,383   421,169   —   19,664   19,664   401,505  
    Consumer leasing transactions (*)   10,832   344   11,176   —   398   398   10,778  
    Other loans and receivables   60,651   2,760   63,411   —   4,624   4,624   58,787  
    Subtotals   2,396,246   117,060   2,513,306   —   136,594   136,594   2,376,712  
    Total   19,114,902   1,267,703   20,382,605   298,152   320,375   618,527   19,764,078  

     

        Gross Assets   Allowances for loan losses      
        Normal
    Portfolio    		   Impaired
    Portfolio    		   Total   Individually
    Evaluated
    for
    impairment    		   Collectively
    evaluated for
    impairment    		   Total   Net carrying
    amount    		  
    As of December 31, 2016   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$  
    Commercial loans:                              
    Commercial Loans   11,312,885   643,479   11,956,364   299,630   31,647   331,277   11,625,087  
    Foreign trade loans   682,188   71,956   754,144   33,068   284   33,352   720,792  
    Current Account debtors   127,694   6,007   133,701   3,967   3,738   7,705   125,996  
    Factoring operations   74,967   1,174   76,141   1,531   177   1,708   74,433  
    Student loans   583,777   26,538   610,315   —   12,369   12,369   597,946  
    Leasing transactions (*)   979,305   94,201   1,073,506   26,952   3,508   30,460   1,043,046  
    Other loans and receivables   26,926   3,374   30,300   910   1,147   2,057   28,243  
    Subtotals   13,787,742   846,729   14,634,471   366,058   52,870   418,928   14,215,543  
    Mortgage loans:                              
    Letter of credit loans   55,199   2,509   57,708   —   119   119   57,589  
    Endorsable mutual mortgage loans   147,562   4,758   152,320   —   1,153   1,153   151,167  
    Other mutual mortgage loans   3,243,747   117,203   3,360,950   —   16,665   16,665   3,344,285  
    Leasing transactions (*)   280,765   7,564   288,329   —   5,245   5,245   283,084  
    Other loans and receivables   28,097   1,113   29,210   —   290   290   28,920  
    Subtotals   3,755,370   133,147   3,888,517   —   23,472   23,472   3,865,045  
    Consumer loans:                              
    Consumer loans   1,715,059   70,945   1,786,004   —   82,031   82,031   1,703,973  
    Current account debtors   174,617   8,215   182,832   —   9,894   9,894   172,938  
    Credit card   403,394   11,509   414,903   —   18,389   18,389   396,514  
    Consumer leasing transactions (*)   16,760   331   17,091   —   572   572   16,519  
    Other loans and receivables   77,179   2,955   80,134   —   6,018   6,018   74,116  
    Subtotals   2,387,009   93,955   2,480,964   —   116,904   116,904   2,364,060  
    Total   19,930,121   1,073,831   21,003,952   366,058   193,246   559,304   20,444,648  

     

    (*) Lease transactions (commercial, mortgage and consumer) are presented net of allowance and total MCh$1,209,715 as of December 31, 2017 (MCh$1,342,649 as of December 31, 2016).

     

    Guarantees taken by the Bank to secure collections reflected in its loan portfolios are collateral (urban and rural property, farm land, ships and aircraft, mining claims and other assets) and pledges (inventory, farm assets, industrial assets, plantings and other pledged assets). As of December 31, 2017 and 2016, the fair value of guarantees taken corresponds to 126.89% and 116.97% of the loans and receivables, respectively.

     

    In the case of mortgage guarantees, as of December 31, 2017 and 2016, the fair value of the guarantees taken corresponds to 85.46% and 78.35% of the balance of these loans and receivables, respectively.

     

    The Bank finances its customers’ asset purchases, both movable and real estate, through lease contracts that are included within loans and receivables from customers. As of December 31, 2017, MCh$306,931 corresponds to leases of movable assets (MCh$447,424 as of December 31, 2016) and MCh$927,168 to leases of real estate assets (MCh$931,502 as of December 31, 2016).

     

    Where appropriate, we obtain collateral in respect of our loans and receivables from customers. The collateral normally takes the form of a mortgage (i.e., urban and rural properties, agricultural lands, maritime vessels and aircraft, mineral rights and other assets) and liens (i.e., inventories, agricultural goods, industrial goods, plantations and other property pledged as security) over the customer’s assets. The existence and amount of collateral generally varies from loan to loan, based on the credit-worthiness of the borrower.

     

    We review collateral fair values by obtaining appraisals on impaired secured loans every 18 months and on normal secured loans every three years.

     

    We monitor collateral values between appraisals on an ongoing basis in order to capture any unusual significant changes (i.e., improved conditions in the real estate industry, changes in overall economic conditions, etc.) in market-based evidence used in the appraisals. In the event that unusual significant changes occur between appraisals, the collateral values are reassessed and recalculated.

     

    During 2017, the Bank received assets such as homes, apartments, commercial and agricultural lands, among others, with a fair value of MCh$7,227 (MCh$2,813 in 2016) through foreclosure or judicial proceedings.

     

    b)        Portfolio characteristics

     

    As of December 31, 2017 and 2016, the loan portfolio before allowances for loan losses by customer economic activity was as follows:

     

        Local loans   Foreign loans   Total   Distribution Percentage  
        As of December 31,   As of December 31,   As of December 31,   As of December 31,  
        2017   2016   2017   2016   2017   2016   2017   2016  
        MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   %   %  
    Commercial loans                                  
    Manufacturing   784,608   1,065,647   255,883   155,749   1,040,491   1,221,396   5.11   5.81  
    Mining   363,065   428,384   280,996   275,056   644,061   703,440   3.16   3.35  
    Electricity, gas and water   589,067   720,818   347,416   414,511   936,483   1,135,329   4.59   5.41  
    Agriculture and livestok   205,333   262,449   210,597   165,296   415,930   427,745   2.04   2.04  
    Forestry and wood extraction   22,975   28,853   15,832   6,494   38,807   35,347   0.19   0.17  
    Fishing   1,527   58,770   12,385   —   13,912   58,770   0.07   0.28  
    Transport   461,486   442,468   206,991   251,885   668,477   694,353   3.28   3.31  
    Comunications   29,296   31,712   65,143   48,448   94,439   80,160   0.46   0.38  
    Construction   1,368,057   1,359,125   270,063   265,669   1,638,120   1,624,794   8.04   7.74  
    Commerce   815,184   912,877   897,666   801,712   1,712,850   1,714,589   8.40   8.16  
    Services   2,616,171   2,869,113   1,164,562   1,418,260   3,780,733   4,287,373   18.55   20.41  
    Others   2,322,773   2,465,332   409,470   185,843   2,732,243   2,651,175   13.41   12.62  
    Subtotals   9,579,542   10,645,548   4,137,004   3,988,923   13,716,546   14,634,471   67.30   69.68  
    Mortgage loans   3,635,993   3,360,930   516,760   527,587   4,152,753   3,888,517   20.37   18.51  
    Consumer loans   1,544,062   1,353,422   969,244   1,127,542   2,513,306   2,480,964   12.33   11.81  
    Total   14,759,597   15,359,900   5,623,008   5,644,052   20,382,605   21,003,952   100.00   100.00  

     

    c)         Allowances for loans losses

     

    The changes in allowances for loan losses during the periods ended December 31, 2017 and 2016 are summarized as follows:

     

            Individually
    evaluated for
    impairment    		   Collectively
    evaluated for
    impairment    		   Total  
        Note   MCh$   MCh$   MCh$  
    Balances as January 1, 2017       366,058   193,246   559,304  
    Impaired portfolio write-offs:                  
    Commercial loans       (69,702 ) (39,648 ) (109,350 )
    Mortgage loans       —   (8,303 ) (8,303 )
    Consumer loans       —   (115,708 ) (115,708 )
    Total write-offs       (69,702 ) (163,659 ) (233,361 )
    Established provision   27   338,701   480,567   819,268  
    Provision released   27   (302,504 ) (169,801 ) (472,305 )
    Application of provisions       (9,760 ) —   (9,760 )
    Exchange rate differences       (24,641 ) (19,978 ) (44,619 )
    Balances as of December 31, 2017   10a)   298,152   320,375   618,527  

     

            Individually
    evaluated for
    impairment    		   Collectively
    evaluated for
    impairment    		   Total  
        Note   MCh$   MCh$   MCh$  
    Balances as January 1, 2016       50,914   44,665   95,579  
    Impaired portfolio write-offs:                  
    Commercial loans       (61,460 ) (24,184 ) (85,644 )
    Mortgage loans       —   (8,157 ) (8,157 )
    Consumer loans       —   (94,294 ) (94,294 )
    Total write-offs       (61,460 ) (126,635 ) (188,095 )
    Established provision   27   387,737   286,297   674,034  
    Provision released   27   (251,582 ) (153,212 ) (404,794 )
    Integration Itaú Corpbanca       297,850   145,097   442,947  
    Application of provisions       (57,170 ) (1,576 ) (58,746 )
    Exchange rate differences       (231 ) (1,390 ) (1,621 )
    Balances as of December 31, 2016   10a)   366,058   193,246   559,304  

     

    d)        Portfolio sales

     

    1.   As of December 31, 2017, 2016 and 2015, the Bank and its subsidiaries engaged in portfolio purchases and sales. The effect on income of these transactions as a whole does not exceed 5% of before-tax profit for the year, and is recorded within net gains from trading and investment income activities in the Consolidated Statement of Income for the period, disclosed in Note 25 “Net Trading and Investment Income” within “Other financial investments at fair value with effect on profit or loss.”

     

    2.   As of December 31, 2017, 2016 and 2015, the Bank and its subsidiaries derecognized 100% of its sold portfolio, thus complying with the requirements of the accounting policy for derecognizing financial assets and liabilities in Note 1.2, letter u) of these annual Consolidated Financial Statements.

     

    During 2017 and 2016, Itaú Corpbanca sold part of its portfolio of state-guaranteed loans and receivables (or “CAE” the Spanish acronym) acquired through a competitive bidding process for awards of the Financing Facility and Administration of Loans for Studies in Higher Education Law No. 20,027.The open bidding model for financial institutions, reflected in the respective databases, allows companies to sell a percentage of  state-guaranteed loans and receivables to third parties. On the portfolio sale, Itaú Corpbanca transferred

     

    substantially all the risks and benefits associated with this portfolio. The detail of loans and receivables sold is as follows:

     

            Carrying   Proceeds for   Gain (loss)  
            Amount   sales   on sale (*)  
        No. Of Loans   MCh$   MCh$   MCh$  
    As of December 31, 2017   60,675   118,027   147,725   29,910  
    As of December 31, 2016   72,780   142,636   175,707   33,871  
    As of December 31, 2015   23,662   46,405   60,324   14,639  

     

    (*) This amount is included under line item “Trading and investment income, net” in the Consolidated Statements of Income, disclosed in Note 25 Net Trading and Investment Income, line “Other financial investments at fair value with effect on profit or loss.”

     

    The gain on the sale, excluding the effect of any provisions on these loans, is comprised of MCh$15.852 as of December 31, 2017 (MCh$18,332 in 2016, and MCh$9,533 in 2015), recognized in the Consolidated Statement of Income within net financial operating income, and the difference, amounting to MCh$14.058 as of December 31, 2017 (MCh$ 14,739 in 2016 and MCh$4,386 in 2015), is recorded in profit or loss based on its period of deferral at the effective tax rate, in accordance with IAS 39.

     

    e)         Lease

     

    The Bank’s scheduled cash flows to be received from finance lease contracts have the following maturities:

     

        Total receivable   Unearned income   Net lease receivable  
        As of December 31,   As of December 31,   As of December 31,  
        2017   2016   2017   2016   2017   2016  
        MCh$   MCh$   MCh$   MCh$   MCh$   MCh$  
    Up to one month   29,846   30,896   3,677   1,782   26,169   29,114  
    More than a month to three months   32,672   38,246   2,857   3,561   29,815   34,685  
    More than three months up to one year   120,691   146,124   11,596   14,774   109,095   131,350  
    More than one year up to three years   262,576   291,393   33,717   39,983   228,859   251,410  
    More than three years up to six years   283,010   319,920   57,453   69,467   225,557   250,453  
    More than six years   1,062,625   1,199,476   448,020   517,562   614,605   681,914  
    Total (*)   1,791,420   2,026,055   557,320   647,129   1,234,100   1,378,926  

     

    (*) Includes:

     

        As of December 31,  
        2017   2016  
    Leasing Transactions   MCh$   MCh$  
    Commercial   940,789   1,073,506  
    Mortgage   282,135   288,329  
    Consumer   11,176   17,091  
    Total   1,234,100   1,378,926