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v3.19.1

Related Party Transactions (Tables) | 12 Months Ended
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Dec. 31, 2018
Related Party Transactions |
Schedule of loans and accounts receivable and contingent loans to related parties |
|  | Production and Services |  | Investment |  |  |  |  |  |  |  |
|  | Companies (*) |  | Companies (**) |  | Individuals (***) |  | Total
|  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018
|  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$
Loans and accounts receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  | 243,989 |  | 221,351 |  | 169,403 |  | 132,366 |  | 8,871 |  | 13,183 |  | 422,263 |  | 366,900
Residential mortgage loans |  | — |  | — |  | — |  | — |  | 33,695 |  | 44,756 |  | 33,695 |  | 44,756
Consumer loans |  | — |  | — |  | — |  | — |  | 7,265 |  | 10,074 |  | 7,265 |  | 10,074
Gross loans |  | 243,989 |  | 221,351 |  | 169,403 |  | 132,366 |  | 49,831 |  | 68,013 |  | 463,223 |  | 421,730
Allowance for loan losses |  | (988) |  | (651) |  | (394) |  | (363) |  | (241) |  | (302) |  | (1,623) |  | (1,316)
Net loans |  | 243,001 |  | 220,700 |  | 169,009 |  | 132,003 |  | 49,590 |  | 67,711 |  | 461,600 |  | 420,414
Contingent loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Guarantees and sureties |  | 4,527 |  | 5,102 |  | 21,146 |  | 14,963 |  | — |  | — |  | 25,673 |  | 20,065
Letters of credits |  | 294 |  | 5,310 |  | 1,170 |  | 2,776 |  | — |  | — |  | 1,464 |  | 8,086
Foreign letters of credits |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | —
Banks guarantees |  | 34,457 |  | 45,842 |  | 23,071 |  | 30,122 |  | — |  | — |  | 57,528 |  | 75,964
Undrawn credit lines |  | 53,151 |  | 58,041 |  | 13,907 |  | 14,674 |  | 15,179 |  | 19,160 |  | 82,237 |  | 91,875
Other contingencies loans |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | —
Total contingent loans |  | 92,429 |  | 114,295 |  | 59,294 |  | 62,535 |  | 15,179 |  | 19,160 |  | 166,902 |  | 195,990
Provision for contingencies loans |  | (217) |  | (118) |  | (81) |  | (38) |  | (48) |  | (17) |  | (346) |  | (173)
Contingent loans, net |  | 92,212 |  | 114,177 |  | 59,213 |  | 62,497 |  | 15,131 |  | 19,143 |  | 166,556 |  | 195,817
Amount covered by guarantee: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  | 27,928 |  | 28,208 |  | 53,835 |  | 52,108 |  | 53,181 |  | 69,292 |  | 134,944 |  | 149,608
Warrant |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | —
Pledge |  | 1,417 |  | — |  | — |  | — |  | — |  | — |  | 1,417 |  | —
Others (****) |  | 39,022 |  | 47,135 |  | 14,186 |  | 13,219 |  | 2,175 |  | 3,694 |  | 55,383 |  | 64,048
Total collateral |  | 68,367 |  | 75,343 |  | 68,021 |  | 65,327 |  | 55,356 |  | 72,986 |  | 191,744 |  | 213,656
(*) For these effects are considered productive companies, those that meet the following conditions:
| (i) |  | They engage in operating activities and generate a separable flow of income,
| (ii) |  | Less than 50% of their assets are trading securities or investments.
Service companies are considered entities whose main purpose is oriented to rendering services to third parties. (**) Investment companies include those legal entities that do not comply with the conditions for operating companies and are profit-oriented. (***)Individuals include key members of the management and correspond to those who directly or indirectly have authority and responsibility for planning, administrating and controlling the activities of the organization, including directors. This category also includes their family members who influence or are influenced by such individuals in their interactions with the organization. (****) These guarantees correspond mainly to shares and other financial guarantees.
Schedule of other assets and liabilities with related parties |
|  | 2017 |  | 2018
|  | MCh$ |  | MCh$
Assets |  |  |  |
Cash and due from banks |  | 57,563 |  | 23,086
Transactions in the course of collection |  | 13,249 |  | 35,469
Financial assets held-for-trading |  | — |  | 205
Derivative instruments |  | 323,186 |  | 415,683
Financial assets |  | — |  | 14,690
Other assets |  | 114,536 |  | 80,569
Total |  | 508,534 |  | 569,702
Liabilities |  |  |  |
Demand deposits |  | 173,715 |  | 169,607
Transactions in the course of payment |  | 16,116 |  | 58,987
Cash collateral on securities lent and repurchase agreements |  | 25,227 |  | 84,465
Savings accounts and time deposits |  | 169,322 |  | 124,362
Derivative instruments |  | 370,356 |  | 337,299
Borrowings from financial institutions |  | 251,555 |  | 228,269
Other liabilities |  | 51,814 |  | 115,145
Total |  | 1,058,105 |  | 1,118,134
Schedule of income and expenses from related party transactions |
|  | 2017 |  | 2018
|  | Income |  | Expense |  | Income |  | Expense
Type of income or expense recognized |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$
Interest and revenue expenses |  | 26,485 |  | 9,332 |  | 21,736 |  | 7,196
Fees and commission income |  | 65,995 |  | 69,843 |  | 70,286 |  | 74,205
Net financial operating income |  |  |  |  |  |  |  |
Derivative instruments (*) |  | 33,540 |  | 97,416 |  | 85,500 |  | 42,365
Other financial operations |  | 1 |  | — |  | — |  | —
Release or established of provision for credit risk |  | — |  | 252 |  | — |  | 28
Operating expenses |  | — |  | 100,389 |  | — |  | 105,734
Other income and expenses |  | 3,723 |  | 56 |  | 446 |  | 45
(*) The outcome of derivative operations is presented net at each related counterparty level. Additionally, this line includes operations with local counterpart banks (unrelated) which have been novated by Comder Contraparte Central S.A. (Related entity) for centralized clearing purposes, which generated a net loss of Ch$71,297 million as of December 31, 2018 (net loss of Ch$96,075 million as of December 31, 2017).
Schedule of payments and composition of key management personnel | Payments to key management personnel:
|  | 2017 |  | 2018
|  | MCh$ |  | MCh$
Remunerations |  | 4,149 |  | 3,926
Short-term benefits |  | 3,302 |  | 3,476
Contract termination indemnity |  | 276 |  | 1,037
Stock−based benefits |  | — |  | —
Total |  | 7,727 |  | 8,439
Composition of key personnel:
|  | N° of executives
Position |  | 2017 |  | 2018
CEO |  | 1 |  | 1
CEOs of subsidiaries |  | 6 |  | 6
Division Managers |  | 12 |  | 13
Total |  | 19 |  | 20
Schedule of directors' expenses and remunerations |
|  |  |  |  |  |  |  |  |  | Fees for attending |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Committees and |  |  |  |  |  |  |  |
|  |  |  |  |  | Fees for attending |  | Subsidiary Board |  |  |  |  |  |  |  |
|  | Remunerations |  | Board meetings |  | meetings (1) |  | Consulting |  | Total
|  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018
Name of Directors |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$ |  | MCh$
Pablo Granifo Lavín |  | 553 | (*) | 569 | (*) | 53 |  | 56 |  | 395 |  | 374 |  | — |  | — |  | 1,001 |  | 999
Andrónico Luksic Craig |  | 172 |  | 176 |  | 8 |  | 10 |  | — |  | — |  | — |  | — |  | 180 |  | 186
Jaime Estévez Valencia |  | 57 |  | 59 |  | 28 |  | 29 |  | 134 |  | 134 |  | — |  | — |  | 219 |  | 222
Gonzalo Menéndez Duque |  | 57 |  | 59 |  | 23 |  | 27 |  | 113 |  | 119 |  | 8 |  | — |  | 201 |  | 205
Francisco Pérez Mackenna |  | 57 |  | 59 |  | 23 |  | 20 |  | 75 |  | 58 |  | — |  | — |  | 155 |  | 137
Rodrigo Manubens Moltedo |  | 57 |  | 59 |  | 28 |  | 28 |  | 53 |  | 54 |  | — |  | — |  | 138 |  | 141
Thomas Fürst Freiwirth |  | 57 |  | 59 |  | 19 |  | 21 |  | 36 |  | 42 |  | — |  | — |  | 112 |  | 122
Jean-Paul Luksic Fontbona |  | 57 |  | 59 |  | 12 |  | 11 |  | — |  | — |  | — |  | — |  | 69 |  | 70
Andrés Ergas Heymann |  | 43 |  | 59 |  | 20 |  | 27 |  | 41 |  | 70 |  | — |  | — |  | 104 |  | 156
Alfredo Ergas Segal |  | 43 |  | 59 |  | 20 |  | 27 |  | 49 |  | 71 |  | — |  | — |  | 112 |  | 157
Jorge Awad Mehech |  | 14 |  | — |  | 6 |  | — |  | 26 |  | — |  | — |  | — |  | 46 |  | —
Jorge Ergas Heymann |  | 14 |  | — |  | 6 |  | — |  | 19 |  | — |  | — |  | — |  | 39 |  | —
Other directors of subsidiaries |  | — |  | — |  | — |  | — |  | 129 |  | 116 |  | — |  | — |  | 129 |  | 116
Total |  | 1,181 |  | 1,217 |  | 246 |  | 256 |  | 1,070 |  | 1,038 |  | 8 |  | — |  | 2,505 |  | 2,511
| (1) |  | It includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda. of Ch$12 million (Ch$18 million in 2017).
(*) It includes a provision of Ch$391 million (Ch$380 million in 2017) for an incentive subject to achieving the Bank’s forecasted earnings.

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