We are a highly motivated team and compromised with the companies principles.
Excelency, trust, transparency and efficency rule our ativities, through this we can
retribute with superior levels of satisfaction and quality service to our customers.
A N N U A L R E P O R T 2 0 0 5 • • • I N D E X
I N D E X
LETTER FROM THE CHAIRMAN 04
COMPANY INFORMATION 06
SHAREHOLDERS 07
Principal Shareholders 07
Material Changes in Share Ownership 09
BOARD OF DIRECTORS 11
Compensation 12
CORPORATE GOVERNANCE 13
Directors Committee 14
Audit Committee 15
MAIN OFFICERS OF CORPBANCA 20
Administrative Structure and Officers 20
BUSINESS OF CORPBANCA 24
Our Mission 24
Brief History 24
Economic and Financial Environment 26
Positive Results for the Financial System in fiscal year 2005 27
CORPBANCA IN 2005 32
Levels of Activity 32
Financing 34
Results 35
Risk Rating 36
Recognitions and Distinctions 38
Risk Factors 38
INVESTMENT AND FUNDING POLICIES 39
Gapping Management 39
Investment Policy 39
Funding Policy 40
Risk Analysis 40
PATENTS AND OTHER INTELLECTUAL PROPERTY 41
MAIN ASSETS 44
Network of Branches of CORPBANCA 44
Network of Branches of Bancondell 45
SUBSIDIARIES AND BUSINESS SUPPORT COMPANIES 47
DISTRIBUTION OF PROFITS 50
DIVIDEND POLICY 50
TRADING VOLUME AND PRICE HISTORY OF SHARES 51
ESSENTIAL FACTS 53
FINANCIAL STATEMENTS 56
It is our way of making business, project ourselves in a
long term relationship.
The consolidated balance sheet of CORPBANCA and its Affiliates
corresponding to fiscal year 2005 reported net income before
taxes of Ch$63,362 million, which represents a 10.6% increase
compared to net income before taxes for 2004. Net income after
taxes reported a nominal increase of 3.7% due to full utilization
of tax loss carryforwards relating to subordinated debt of
Corp Banca held by the Central Bank of Chile.
Fiscal year 2005 was a year of changes for CORPBANCA. During
the year, the Bank made an important effort to strengthen its
strategy for growth allowing the Bank to solidify itself as one of
the main financial institutions in the country.
As a result of the goals set forth by both the Board of Directors
and Management, CORPBANCA has significantly improved its
corporate governance practices. In fact, during the 2005, the Bank
hired external advisors to assist the Bank with fully complying
with the requirements of the Sarbanes-Oxley Act of 2002.
In addition, in order to further our strategy of increasing the value
to our relationship with our clients, CORPBANCA has invested
nearly Ch$1,800 million in branch offices. This investment, destined
to offices of Bancondell as well as of CORPBANCA, has resulted
in the refurbishment, movement and opening of new branches
throughout the country. In 2005, the Bank opened eight new
branches for service to clients.
The Bank also made a considerable investment in marketing with
the goal of strengthening our relationship with American Express.
During the year we implemented successful marketing campaigns
in the media and at our branches with positive results in our credit
cards operations. Important results have also been achieved in
the opening of current accounts, consumer credits, cash manage-
ment agreements, etc.
Our strategy as was implemented during 2005 resulted in the
growth of the Bank’s business segments financial margins. The
Personal Banking segment grew by 30% during the year while
Corporate Banking grew by 17%.
The Corporate Banking segment has been reorganized to increase
the focus on small- and medium-size enterprises.
The Personal Banking segment increased by 30% in terms of credit
card placements compared to 2004. The average balances
maintained by holders of current accounts have also increased,
by 8%. As a clear result of the campaigns of the Bank regarding
mortgage-secured loans, the average loans for housing increased
from the equivalent to 1.55 times the average for the sector in
2004 to 1.65 times at the end of 2005.
Finally, the Bank has implemented a successful strategy of cross-
selling of Personal Banking products, with 55% of new CORPBANCA
L E T T E R F R O M T H E C H A I R M A N
L E T T E R F R O M T H E C H A I R M A N • • • A N N U A L R E P O R T 2 0 0 5
04
A N N U A L R E P O R T 2 0 0 5 • • • L E T T E R F R O M T H E C H A I R M A N
05
clients having two or more products; 92% of new mortgage loans
clients having at least three products, and 50% of the new credit
card having at least one additional product.
In summary, with the changes introduced during 2005, there has
been a strengthening in the strategic position of CORPBANCA
which seeks, as always, the best relationship among the share-
holders, personnel and clients, in a context characterized by an
adequate level of profitability, portfolio quality, efficiency and
service excellence.
Carlos Abumohor Touma
Chairman of the Board
In 2005, the Bank opened eight newbranches for service to clients.
C O M P A N Y I N F O R M A T I O N • • • A N N U A L R E P O R T 2 0 0 5
C O M P A N Y I N F O R M A T I O N
06
• Corporate Name : CORPBANCA
• Domicile : Huérfanos 1072, Santiago
• Taxpayer Id. No. : 97,023,000-9
• Type of Company : Banking joint stock corporation
• Telephone – fax : 687 80 00 – 672 67 29
• P.O. Box : Casilla 80-D
• E-mail : [email protected]
• Web Address : www.corpbanca.cl
• Articles of Incorporation : CORPBANCA was organized by
means of a public deed dated
August 7, 1871 executed before
the notary public of Concepción
Mr. Nicolás Peña. The Executive
Decree that approved its exis-
tence was published in the
newspaper “El Araucano” on
Tuesday, February 20, 1872,
being its last reinstated text set
forth by the Extraordinary Ge-
neral Shareholders’ Meeting the
minute of which was trans-
cribed into a public deed on
May 28, 1992 in the notarial
office in charge of the notary
public of Santiago Mr. Gonzalo
de la Cuadra Fabres.
A N N U A L R E P O R T 2 0 0 5 • • • S H A R E H O L D E R S
S H A R E H O L D E R S
07
Principal Shareholders
The principal shareholders of CORPBANCA as of December 31,
2005, and their respective participation in the total number of
shares that form the share capital of the Bank, are the following:
As of December 31, 2005, the twelve main shareholders of the
Bank are indicated below along with the number of shares they
hold and the percentage of participation:
No. Name Shares % Ownership1 Corp Group Banking S.A. 112,530,207,591 49.592 Cía. Inmobiliaria y de Inversiones Saga S.A. 18,032,162,741 7.953 The Bank Of New York 8,217,100,000 3.624 Citibank Chile Cta. de Terceros Cap.XIV 7,716,400,346 3.405 Manufacturas Interamericana S.A. 5,413,342,266 2.396 Ucb Bancshares S.A. 4,285,534,265 1.897 Compañía de Seguros de Vida Consorcio Nacional 3,081,014,903 1.368 AFP Provida S.A. para Fondo de Pensión C 2,925,089,842 1.299 Inversiones y Valores S.A. 2,919,740,749 1.29
10 AFP Hábitat S.A. para Fondo de Pensión C 2,861,699,459 1.2611 Banchile Corredores de Bolsa S.A. 2,422,416,244 1.0712 Inmobiliaria e Inversiones Boquineni Ltda 2,294,225,537 1.01
Other 54,210,356,634 23.89TOTAL 226,909,290,577
49,59% Corp Group Banking S.A.
38,84% Others
07,95% Cía. Inmobiliaria y de Inversiones Saga S.A.
03,62% The Bank of New York
08
S H A R E H O L D E R S • • • A N N U A L R E P O R T 2 0 0 5
As of the end of 2005, the shareholder participation of Corp Group Banking, which controls the Bank, was the following:
The individuals with a direct or indirect shareholding participation in Corp Group Banking, the Bank’s controlling company, are listed below:
Name % OwnershipInternational Financial Investments Holdings Inc. 57.97Longford Worldwide Ltd. 8.57Watermill Overseas Limited 7.90Northgate Investments Holdings Ltd. 6.90SIF Investments Ltd. 6.22Sherbrooke Capital Ltd. 6.05Whistlebay Limited 4.59Aliestar S.A. 1.80
Name Taxpayer Id. No. % OwnershipAlvaro Saieh Bendeck and Family 5.911895-1 57.97Rene Abumohor Touma 3.065.693-8 7.90Domingo Díaz Pérez 2.158.001-5 5.93Espir Aguad Abusada 5.202.480-3 4.37Jorge Selume Atala 2.201.114-6 3.11Jorge Selume Zaror 6.064.619-8 3.11Fernando Aguad Dagach 6.867.306-2 3.02Juan Pablo Díaz Cumsille 4.886.312-4 2.11Amelia Cumsille Nuñez 2.470.918-3 1.90Alberto Muchnick Mlynarz 6.447.493-6 1.80Other shareholders 8.78
A N N U A L R E P O R T 2 0 0 5 • • • S H A R E H O L D E R S
09
The only individual who maintains a direct and indirect percentage in excess of 10% of the shares of the Bank is Mr. Álvaro Saieh Bendeck
and Family (Taxpayer Id. No.: 5.911.895-1), who is the holder of [36.69%] of the total shres of CORPBANCA.
Material Changes in Share Ownership
During 2005, the material changes in the ownership of shares of CORPBANCA were the following:
Increases in the share participation in the Bank as of December 31, 2005
Taxpayer Share ShareName or Corporate Name Id. No. participation as % participation as %
of 12/31/2004 of 12/31/2005
Citibank NA for the account of third parties 97.008.000-7 3,897,905,927 1.72% 7,716,400,346 3.40%
Corp Group Banking S.A. 96.858.900-8 111,029,019.40 48.93% 112,530,207,591 49.59%
Cía. de Seguros de Vida Consorcio
Nacional de Seguros de Vida S.A. 99.012.000-5 1,838,400,886 0.81% 3,081,014,903 1.36%
Banco Santander Chile – Custodia 1 97.036.000-K 0 0.00% 974,052,906 0.43%
Soc. de Inv. y Rentas Megeve Ltda. 87.736.800-9 0 0.00% 929,731,575 0.41%
Commonwealth of Pennsylvania Public School 47.006.309-2 0 0.00% 669,102,633 0.29%
Bice Corredores de Bolsa S.A. 79.532.990-0 400,986,893 0.18% 1,007,332,987 0.44%
Fondo Mutuo Bice Acciones 96.514.410-2 70,836,612 0.03% 562,390,328 0.25%
Inversiones Siegel Ltda. 76.325.990-0 0 0.00% 404,505,365 0.18%
Adm. Fondos Mutuos Sudamer S.A. FM Patrimonio 96.634.320-6 62,198,927 0.03% 439,800,000 0.19%
10
S H A R E H O L D E R S • • • A N N U A L R E P O R T 2 0 0 5
Decreases in share participation in the Bank as of December 31, 2005
Taxpayer Share ShareName or Corporate Name Id. No. participation as % participation as %
of 12/31/2004 of 12/31/2005
The Bank of New York 59.030.820-K 13,626,260,000 6.00% 8,217,100,000 3.62%
Consorcio Corredores de Bolsa S.A. 96.772.490-4 1,885,822,497 0.83% 797,782,506 0.35%
Santander Investment Corredores de Bolsa S.A. 96.683.200-2 1,336,878,424 0.59% 482,988,555 0.21%
AFP SummaBansander F. de Pensión C 98.000.600-K 1,203,562,374 0.53% 633,478,045 0.28%
Celfin Gardeweg S.A. Corredores de Bolsa 84.177.300-4 1,887,628,336 0.83% 1,338,662,593 0.59%
AFP Santa Maria S.A. Fdo. Pensión C 98.000.000-1 1,635,649,916 0.72% 1,149,514,890 0.51%
Ureta y Bianchi Corredores de Bolsa S.A. 80.993.900-6 572,845,380 0.25% 235,341,032 0.10%
Valores Security S.A. Corredores de Bolsa 96.515.580-5 621,092,061 0.27% 307,245,189 0.14%
CN Life Compañía de Seguros de Vida S.A. 96.579.280-5 399,458,725 0.18% 97,700,087 0.04%
Deutsche Securities Corredores de Bolsa 78.221.830-1 289,152,664 0.13% 6,342,155 0.00%
A N N U A L R E P O R T 2 0 0 5 • • • B O A R D O F D I R E C T O R S
11
B O A R D O F D I R E C T O R S
President
Carlos Abumohor Touma
Taxpayer Id. Nº: 1.535.896-3
Businessman
Director
Jorge Selume Zaror
Taxpayer Id. Nº: 6.064.619-8
Commercial Engineer
Universidad de Chile
Director
Hernán Somerville Senn
Taxpayer Id: 4.132.185-7
Attomey
Universidad de Chile
Director
Francisco Rosende Ramírez
Taxpayer Id: 7.024.063-7
Commercial Engineer
Universidad de Chile
First Vice President
Álvaro Saieh Bendeck
Taxpayer Id. Nº: 5.911.895-1
Commercial Engineer
Universidad de Chile
Director
Fernando Aguad Dagach
Taxpayer Id: 6.867.306-2
Businessman
Director
René Cortázar Sánz
Taxpayer Id: 5.894.548-K
Commercial Engineer
Pontificia Universidad Católica de Chile
Director
Julio Barriga Silva
Taxpayer Id: 3.406.164-5
Agronomist
Universidad de Chile
Second Vice President
Jorge Andrés Saieh Guzmán
Taxpayer Id. Nº: 8.311.093-7
Commercial Engineer
Universidad Gabriela Mistral
Director
Carlos Massad Abud
Taxpayer Id: 2.639.064-8
Commercial Engineer
Universidad de Chile
Director
Odde Rishmague Rishmague
Taxpayer Id: 4.366.863-3
Businessman
Alternate Director
Juan Rafael Gutiérrez Avila
Taxpayer Id: 4.176.092-3
Accountant - Auditor
The Board of Directors of the Bank is formed by eleven members and one alternate member as following:
B O A R D O F D I R E C T O R S • • • A N N U A L R E P O R T 2 0 0 5
The Board of Directors of CORPBANCA normally meets once a
month. At the monthly meetings, at the same time that it conducts
a follow up of the Bank’s results and a comparison of such results
with those of the financial industry, it determines the general
guidelines to be followed by the institution. In addition, the Board
of Directors determines the policies and procedures to be followed
in terms of Corporate Governance.
COMPENSATION
In accordance with votes taken at the Ordinary Shareholders’
Meeting held on February 21, 2005, the members of the Board of
Directors did not receive compensation for their services. The
directors who are members of the Committee of Directors received
compensation in a total amount of Ch$132 million while the
members of the Audit Committee received compensation for a
total sum of Ch$42 million, all as resolved by the Ordinary
Shareholders’ Meeting held February 21, 2005.
The directors of the Affiliated and Related Companies did not
receive compensation for their services during 2005.
The total compensation received by the managers and main
executives of CORPBANCA during 2005 amounted to Ch$4,141
million. In addition, bonuses were paid for the meeting of targets
to the executives of the Bank, pursuant to the policy of bonuses
set forth by the Division of Organizational Development together
with the General Management.
[Total indemnifications for years of service] received by the
managers and main executives of the Bank during fiscal year 2005
amounted to Ch$ 342 million.
12
A N N U A L R E P O R T 2 0 0 5 • • • C O R P O R A T E G O B E R N A N C E
C O R P O R A T E G O V E R N A N C E
Due to the interest of shareholders, the Board of Directors of
CORPBANCA has decided to officially make public the institutional
governance principles and policies that regulate the Bank and its
Affiliated Companies, the Mission of the Bank, the role of the
Board of Directors, its main powers and roles, the committees
formed by members of the Board of Directors itself and the policies
applicable to the transactions with related parties.
Such principles and policies apply to the executives and
management of CORPBANCA, to those who hold the positions of
seniority and to the main committees that participate in such
management, and are based on the ethical aspects that must
govern their acts relating to such management.
In addition, within the corporate structure of the Bank special
emphasis has been given to the office of the Officer of Compliance,
whose role includes securing compliance by the Bank with the
rules related to money laundering.
In connection with Assets Laundering and Terrorism Financing
Prevention, the area of Compliance performs direct control over
the Main Office, the Affiliates and the branches. For the control
of these matters and the performance of the relevant duties counts
with the appropriate organization and with the adequate
independence from the Administration of the Bank, reporting
directly to the Audit Committee, which is formed by four members
who are independent directors. In addition, it integrates the
Committee of Analysis of Suspicious Transactions formed by the
General Manager, Managers of Commercial Divisions, Managers
of Risk Divisions, Manager of Operations Division, Manager
Comptroller and Manager of the Legal Services Division.
In order to mitigate the risks associated to these matters, there
have been implemented policies, rules and procedures which
constitute a commitment on the part of the directors, executives
and all those persons that collaborate with the institution. These
guidelines, which are framed in international standards and set
forth directives issued in accordance with the same, cover matters
such as “Know your Client”, created on the basis of practices of
due diligence, “Control, Identification, Analysis and Communication
of Suspicious Transactions”, “Program of Training of Personnel”,
“Conduct and Ethical Behavior of Directives and Collaborators”,
“Persons Politically Exposed (PPE)”, “Policy of Acceptance of
Clients”, and “Activities Involving High Risk”, among others.
The Bank also has a software program for the detection of unusual
transactions which allows us to have a broad coverage of control
and monitoring over our clients, transactions and products subject
to criteria or analysis of risk, establishing parameters or the
generation of reports related to volume, amount, segments of
business, etc. It allows us to program and direct control procedures
carried out by the Area of Compliance toward areas of higher risk
13
14
such as Private Banking, Correspondent Banking, border zones,
tax free zones, etc.
For the Private Banking segment, the Area of Compliance applies
typing criteria in the analysis of its clients, which includes a policy
directed to those clients who engage in commercial activities,
which are considered of high risk. In terms of Correspondent
Banking, the Bank has a policy of obtaining the policies and
procedures of other banks for the prevention of assets laundering,
in order to maintain a good knowledge of the counterpart banks.
Finally, the Area of Compliance carries out a program of permanent
training and awareness, which it periodically updates in order to
respond to new criminal activities, the complexity and sophistication
of which is improving. There are various types of training: a basic
level training for personnel in the group and an advanced level
for those in areas of high exposure, such as the Private Banking,
Commercial Enterprises Banking, Personal Enterprises Banking
and Front Office.
Directors Committee
The Committee of Directors of CORPBANCA is composed of the
following members of the Board of Directors: Carlos Massad Abud,
Taxpayer Identification Number: 2.639.064-8, Commercial Engineer
(Chairman of the Committee), René Cortazar Sánz, Taxpayer
Identification Number: 5.894.548-k, Commercial Engineer and
Francisco Rosende Ramírez, Taxpayer Identification Number:
7.024.063-7, Commercial Engineer. During fiscal year 2005 it met
on a monthly basis and has performed each of the activities
C O R P O R A T E G O B E R N A N C E • • • A N N U A L R E P O R T 2 0 0 5
15
required by numerals one through five of section 50 bis of Law
No. 18,046 which basically requires an examination of the Balance
Sheet and the Financial Statements of the Bank, including the
Notes thereto and the Report from the Independent Auditors and
issuing a statement with respect to the outcome of such review;
the proposal of an independent auditor which is submitted to the
consideration of the Shareholders’ Meeting; an examination of
the information related to the transaction covered by sections 44
and 89 of Law No. 18,046 and distribution of reports in connection
with such information, and an examination of the compensation
and plans for compensation that have been agreed upon with the
senior executives of the Bank, becoming acquainted with the
monthly results of the Bank; being familiar with the reports from
the rating agencies; following the progress by the Comptroller of
such office’s internal review; approving the general model of risk
proposed by the Comptroller; analyzing and became acquainted
with internal audits; examination of the Financial Statements of
the Bank, both at interim periods, as well as at the close of the
fiscal year; being familiar with the Reports of the Independent
Auditors and Reports of the inspective visits of the Superintendency
of Banks and Financial Institutions; being familiar with and
approving the answer of the Bank to the Reports of that
Superintendency and conducting a follow up of the commitments
of the Bank related thereto; approving and being familiar with
the the Sarbanes-Oxley Act Project; approving the issuance of
bonds by the Bank; being familiar with the different aspects of
the Financial Risk Division related to liquidity and market risk, the
tension tests on market risk and the new rules of the
Superintendency of Banks and Financial Institutions and the Central
Bank of Chile; being familiar with the report on management’s
self-evaluation report; being familiar with the different aspects of
management of the affiliates Corpbanca Corredora de Bolsa S.A.,
Corpbanca Administradora General de Fondos S.A., Corpbanca
Asesoría Financiera S.A. and Corpbanca Corredora de Seguros
S.A.; being familiar with and approving the by-laws of the Audit
Committee; being familiar with and tracking the business
continuance project; approving and being familiar with the disaster
recovery plan; being aware of aspects related to the laundering
of assets; being familiar with material litigation that represent
contingencies to the Bank; being familiar with the diverse aspects
of the Systems Division; being familiar with the report of the
independent auditors related to the controls and comments of
the administration to that report and being familiar with suspicious
transactions and ordering a report of such activities to the relevant
authorities in cases where it is considered appropriate.
Audit Committee
The Audit Committee is composed of directors Messrs. Hernán
Somerville Senn, Taxpayer Identification Number: 4,132,185-7,
Attorney (Chairman), Carlos Massad Abud, Taxpayer Identification
Number: 2,639,064-8, Commercial Engineer, René Cortazar Sánz,
A N N U A L R E P O R T 2 0 0 5 • • • C O R P O R A T E G O B E R N A N C E
16
C O R P O R A T E G O B E R N A N C E • • • A N N U A L R E P O R T 2 0 0 5
Taxpayer Identification Number: 5,894,548-k, Commercial Engineer
and Francisco Rosende Ramírez, Taxpayer Identification Number:
7,024,063-7, Commercial Engineer. The Committee regularly meets
twice a month but also meets whenever it is considered appropriate
by any of its members. In one of the two monthly meetings only
the Committee members and the Comptroller participate, without
the management of the Bank. At least one meeting is held with
the independent auditor in order to review the annual Balance
Sheet prior to its presentation to the Board of Directors, in addition
to any other meetings, which the independent auditor is required
to attend in order to render an account of its role as independent
auditor.
During fiscal year 2005, the Committee performed and carried out
every and each one of the functions and activities which the rules
of the Superintendency of Banks and Financial Institutions require,
in particular, proposing an independent auditor; becoming familiar
with the reports of the rating agencies; becoming familiar with
the plans of the Office of the Comptroller; approving of the general
risk model proposed by the Office of the Comptroller; analyzing
17
A N N U A L R E P O R T 2 0 0 5 • • • C O R P O R A T E G O B E R N A N C E
internal audits in all the matters of its adequacy; examining the
interim Financial Statements of the Bank, as well as those for the
end of the fiscal year; becoming familiar with the reports of the
Independent Auditors and Reports by the Superintendency of
Banks and Financial Institutions; becoming familiar with and
approving the Bank’s responses to such reports from the
Superintendency and overseeing any changes made based on
such comments; approval and oversight of the progress in the
Sarbanes-Oxley Act Project; becoming familiar with the different
aspects of the Financial Risk Division related to liquidity and
market risk, the tension tests on market risk and the new rules of
the Superintendency of Banks and Financial Institutions and the
Central Bank of Chile; becoming familiar with management’s self-
evaluation report and the amendments referred to this process
indicated in chapter 1 - 13, related to the area of audit and the
Audit Committee; becoming familiar with the different aspects of
management of our affiliates Corpbanca Corredora de Bolsa S.A.,
Corpbanca Administradora General de Fondos S.A., Corpbanca
Asesoría Financiera S.A. and Corpbanca Corredora de Seguros
S.A.; becoming familiar with and approving the by-laws of the
Audit Committee; approving and overseeing business continuance
projects; approving and overseeing the disaster recovery plan;
becoming informed with the aspects of laundering of assets;
becoming informed of material litigation causing a contingency
for the Bank, becoming familiar with the different aspects of the
Systems Division; becoming familiar with the report of the
independent auditors related to the controls and procedures and
oversight of the report; and becoming familiar with suspicious
transactions and ordering a report of such transactions in cases
where it is deemed necessary.
In order to adapt ourselves to our customer needs and give
real solutions to their finantial needs.
20
M A I N O F F I C E R S O F C O R P B A N C A • • • A N N U A L R E P O R T 2 0 0 5
M A I N O F F I C E R S O F C O R P B A N C A
Administrative Structure and Officers
The Bank is managed under the direction of the Board of Directors through the General Manager.
The following is the chart of the administrative officers of CORPBANCA as of December 31, 2005.
Support AreasCommercial Areas Subsidiaries
Chief Executive Officer
Christian Samsing
Retail Banking
Osvaldo Barrientos
Commercial Banking
Marcelo Achondo
Treassury and International
Christian Schiessler
Distribution Channels
Carlos Aracena
Mutual Funds
Pedro Silva
Securities Brokerage
Carlos Ubeda
Insurance Brokerage
Roberto Vergara
Financial Advisory
Roberto Baraona
Operations
Guido Silva
Information and Technology
Armando Ariño
Chief Financial Officer
Claudio Chamorro
Human Resources and Administration
Olivia Brito
Legal Counselor
Cristián Canales
Risk
Julio Henríquez
Credit Risk
Fernando Valdivieso
Marketing and Products
Enrique Martínez
A N N U A L R E P O R T 2 0 0 5 • • • M A I N O F F I C E R S O F C O R P B A N C A
21
Christian Samsing Stambuk
(Commercial Engineer Pontificia Universidad Católica de Chile;
Taxpayer Identification Number 6.731.190-6) has been the General
Manager of CORPBANCA since May of 2003; between January
and April of that year performed functions as Deputy General
Manager; as Manager of the Risk Division performed between
1996 and 2003. Previously, he held the office of Commercial
manager and Acting General Manager of Bank Boston Chile and
American Express Bank Ltda. (Chile).
Marcelo Achondo Larenas
(Commercial Engineer Universidad de Chile; Taxpayer Identification
Number 6.447.511-8) has been Manager of Enterprises Commercial
Division since the month of April of 2003; since 1996 and until
February of 2003 he performed the office of Manager of Large
Enterprises Division. In addition, he served in a similar position
with Banco Osorno y la Unión between 1994 and 1996.
Claudio Chamorro Carrizo
(Commercial Engineer Pontificia Universidad Católica de Chile;
Taxpayer Identification Number 10.585.375-0) he performs the
office of Manager of the Planning and Management Control
Division since the month of November of 2005. Prior to that date,
he served as Manager of Financial Risk in CORPBANCA. Prior to
that date, he performed activities as Manager of Financial Risk in
CORPBANCA New York and as Director of Research in the
Superintendency of Banks and Financial Institutions.
Osvaldo Barrientos Valenzuela
(Civil Engineer Universidad de Chile; Taxpayer Identification Number
9.006.525-4) serves the office of Manager of the Individuals
Commercial Division since December of 2004. Between 1994 and
2004 he performed the office of Manager of Means of Payment
of Banco Santander Santiago.
Julio Henríquez Banto
(Commercial Engineer Universidad de Santiago de Chile; Taxpayer
Identification Number 8.943.341-K) is the Manager of the Risks
Division since the month of November of 2005. Since June 2004
and until October of 2005 he served the office of Manager of the
Office of the Comptroller Division. Between September of 2000
and May of 2004 he served as Manager of the Products Division.
Christian Schiessler García
(Commercial Engineer Universidad Federico Santa María; Taxpayer
Identification Number 7.277.278-4) has been the Manager of the
Finance and International Division since May of 1996. Prior to
that, he served similar positions in Banco Osorno y la Unión and
Banco Edwards.
Fernando Valdivieso Larraín
(Commercial Engineer Pontificia Universidad Católica de Chile;
Taxpayer Identification Number 6.063.152-2) is the Manager of
the Enterprises Credit Risk Division since August of 2005. Since
the year 2002 and until the year 2005 he performed the office of
Manager of the Risk Division in Compañía de Seguros Vida Corp.
Previously to that, he served the position of Manager of the Credit
Division and Manager of the Risks Division of Banco Santiago.
The senior officers of the Bank are the following:
22
M A I N O F F I C E R S O F C O R P B A N C A • • • A N N U A L R E P O R T 2 0 0 5
Carlos Aracena Mellado
(Commercial Engineer Universidad de Santiago de Chile; Taxpayer
Identification Number 8.746.808-9) he performs as Manager of
the Channels Division since the month of December of 2004.
Between the months of April and December of 2004 he served
the office of General Manager of Instacob, a collections company
related to the Corp Group.
María Olivia Brito Bahamonde
(Commercial Engineer Universidad Gabriela Mistral; Taxpayer
Identification Number 10.006.501-0) serves the position of Manager
of the Organizacional Development Division since January of 2002.
Prior to that, he served as Manager of the Planning and
Management Control Division.
Cristián Canales Palacios
(Attorney Universidad Chile; Taxpayer Identification Number
9.866.273-1) is, since the month of April of 2003 the Manager of
the Legal Services Division. Between 2002 and March of 2003 he
performed as Manager in the Legal Services Area.
Armando Ariño Joiro
(Civil Engineer Universidad INCCA, Colombia; Taxpayer Identification
Number 14.726.855-6) has been the Manager of Systems Division
since the month of November of 2000. Prior to that date, between
1995 and 2000 he performed as senior consultant of systems and
technology in Coinfin (Colombia).
Guido Silva Escobar
(Commercial Engineer Universidad de Chile; Taxpayer Identification
Number 5.774.598-3) is since November of 2005 the Manager of
the Operations Division. Previously he performed as the General
Manager of Skandia Chile S.A. and Manager of Operations and
Technology of Banco Edwards.
In addition, and reporting to the Audit Committee:
Silvia Quintard Flehan
(Accountant – Auditor Universidad Diego Portales; Taxpayer
Identification Number 9.819.257-3) has been since the month of
December of 2005 the Manager of the Office of the Comptroller.
Prior to that he performed the office of Manager of Operations
of the Bank and its Affiliates and as Manager of Operations of
Corp Corredores de Bolsa.
A N N U A L R E P O R T 2 0 0 5 • • • M A I N O F F I C E R S O F C O R P B A N C A
23
As of December 31, 2005, CORPBANCA and its affiliates had a total working force of 2,170 employees, the distribution of which is the
following:
Company Senior Professionals Workers TotalExecutives and Technicians and Others
CORP BANCA 116 1,035 883 2,034CORP BANCA Mutual Funds S.A. 3 24 20 47CORP BANCA Securities Brokerage S.A. 4 24 15 43CORP BANCA Insurance Brokerage S.A. 3 14 25 42CORP BANCA Financial Advisory S.A. 3 1 0 4
24
B U S I N E S S O F C O R P B A N C A • • • A N N U A L R E P O R T 2 0 0 5
Our Mission
“To be an important actor in the financial market, offering to our
clients, both individuals and companies, a variety of competitive
products and services, generated by a teams of persons highly
motivated and committed to the highest standards of excellence
and efficiency in management, and to deliver superior levels of
profitability to our shareholders”.
Brief History
In 1871, a group of neighbors in Concepción headed by Mr. Aníbal
Pinto, who would later become President of the Republic, transcribed
into a public deed the by-laws of Banco de Concepción. On
October 6 of that year, the Bank commenced operations, which
have continued in an uninterrupted manner until now, becoming,
therefore, the oldest bank in the country. In 1971, the Bank
underwent a change in its ownership structure, the result of a
confiscation of the private banking industry. Control passed to the
CORPORACIÓN DE FOMENTO DE LA PRODUCCIÓN (CORFO). That
very same year, Banco Concepción acquired Banco Francés e
Italiano in Chile, which brought the Bank to Santiago. Later, in
1972, the Bank acquired Banco de Chillán and, in 1975, Banco de
Valdivia. In November of 1975, CORFO sold its shares to private
entrepreneurs, who took control of the Bank in 1976. In 1980,
and as a result of its growth, Banco de Concepción became a
national bank, changed its corporate name to that of Banco
Concepción and moved the General Management from Concepción
to Santiago. In 1986, Sociedad Nacional de Minería (SONAMI)
acquired the Bank. Since the acquisition, the Bank took special
interest in the financing of small and medium size mining companies
increased its capital and sold its risky portfolio to the Central Bank
of Chile.
Toward the end of 1995, SONAMI sold a majority interest in the
Bank to a group of investors headed by Mr. Alvaro Saieh B., through
INFISA, a holding company (currently Corp Group). Since the
acquisition, the controlling shareholders of the Bank defined a
strategy of growth, re-positioning and restructuring of the
operations in order to place it among the important actors of the
national financial system. As part of the strategy of growth that
the controlling shareholders changed the Bank’s strategy to focus
on small and medium sized companies. During the first quarter
of the year 1997, the shareholders of Banco Concepción reached
an agreement with the Central Bank of Chile in order to extinguish
the subordinated debt that the Bank held since the early 1980s.
Also in 1997, as part of the Bank’s re-positioning plan, the
controlling shareholders changed the Banks name to CORPBANCA.
In 1998, the Bank acquired the loan portfolio of Corfinsa, which
B U S I N E S S O F C O R P B A N C A
A N N U A L R E P O R T 2 0 0 5 • • • B U S I N E S S O F C O R P B A N C A
25
was the consumer loan division of Banco Sudamericano, formerly
of Financiera Condell, both of which today comprise Bancondell,
and thereby began participating in the market aimed at the low-
medium-segment of the population. Such strategy has allowed
CORPBANCA to be the second bank in the banking sector in terms
of growth in loans in the last seven years. It also allowed for the
reversal of losses suffered in 1999 and the high profitability over
average capital and reserves starting in December of 2001 and
continuing until now.
In November of 2002, CORPBANCA issued shares in the local
market for a total of US$250 million. The issuance was made in
the Emerging Stock Market, being the first issuer to issue
instruments in such market.
Subsequently, in November of 2004, CORPBANCA took a big step
toward internationalization when it completed the process of
listing its American Depositary Receipts (ADRs) on the New York
Stock Exchange. The process had started in November of 2003,
with the issuance of shares in the United Status pursuant to Rule
26
144A under the Securities Act of 1933, as amended, to Qualified
Institutional Buyers.
In November of 2004, 2,701,040 ADRs which had been issued
pursuant to Rule 144A in 2003 where exchanged for ADRs registered
with the U.S. Securities and Exchange Commission (each ADR
represents five thousand shares in CORPBANCA). The aggregate
number of ADRs represents 5.95% of the Bank’s shares outstanding.
The exchange allowed the ADRs to be listed on the New York
Stock Exchange, enhancing the liquidity of the shares. CORPBANCA
at the same time began compliance with certain disclosure
requirements, which provide for greater transparency, as well as
with international standards in matters of accounting and corporate
governance.
Economic and Financial Environment
In 2005, GNP reached 6.3% per annum, which completed the
economic recovery of the country. Inflation increased, mainly, due
to the impact of the price of the oil. During the year, the consumer
price index increased by 3.7%, falling within the targeted range
for inflation set by the Central Bank of Chile. The unemployment
rate steadily decreased to 6.9%.
During 2005, the Central Bank of Chile cautiously increased the
interest rate, following the trend of the Federal Reserve of the
United States of America. In November of 2005, the Central Bank
increased the interest rate by 25 basis points to 4.5% per annum,
after a series of increases which started at 1.75%.
Economic growth was, once again, driven by exports, which were
US$39,536 million in 2005, or 35% of the Chilean GNP. Also, the
price of the main export product, copper, surpassed US$2 per
pound by the end of 2005. The large volume of exports has been
accompanied, this time, by a large increase in investments, which
exceeded the record levels registered prior to the recession of
1999.
Also, the balance of commercial trade (FOB) was approximately
US$9,200 million in 2005 compared with US$9,019 million for
In November of 2002, CORPBANCAissued shares in the local market for atotal of US$250 million. The issuancewas made in the Emerging Stock Market,being the first issuer to issue instrumentsin such market.
B U S I N E S S O F C O R P B A N C A • • • A N N U A L R E P O R T 2 0 0 5
27
2004; exports increased from US$32,000 million in 2004 to
US$39,536 million in 2005, while imports increased from US$23,000
million in 2004 to US$30,300 million in 2005.
Positive Results for the Financial System in fiscal year
2005
The banking sector closed 2005 in a situation of financial strength
having had important growth in terms of activity, access to new
clients, efficiency and transparency.
The dynamic nature of the economy can be seen in the increase
in loans, as well as the increase in liabilities and borrowings
obtained by customers (time deposits). Loans increased by 13%
in 2005, the highest increase since 1998. Time deposits in turn
increased by 23%, surpassing in a considerable way the growth
experienced during the last seven years.
The Chilean banking sector is considered the strongest among
those of emerging countries and is in third place within industrialized
countries, being surpassed only by the United States and Canada.
A N N U A L R E P O R T 2 0 0 5 • • • B U S I N E S S O F C O R P B A N C A
Total Loans(Annual change as of December each year)
1997
14,0%
12,0%
10,0%
8,0%
6,0%
4,0%
2,0%
0,0%
1998 1999 2000 2001 2002 2003 2004 2005
Time Deposits(Annual change as of December each year)
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
-5,0%
-10,0%%
1998 1999 2000 2001 2002 2003 2004 2005
13,2%12,5%
10,4%
4,6%
1,6%
4,6%4,3%
2,7%
4,8%
10,7%
22,5%
17,1%
-4,1%
2,3%4,5%
2,1%
12,0%
28It should be noted that, despite the significant increase in the loan
base, the quality of the portfolio of the banking sector remains at
adequate levels, with a risk index that was lower than that of
previous years. Also, the percentage of overdue loans dropped as
compared to the total portfolio.
In addition, the sector continues increasing its operational efficiency
related to operating expenses, reaching 53%.
Fiscal year 2005 was also characterized by increased competition
from inside the banking sector particularly with the expansion of
support networks, such as automated teller machines and credit
cards and from outside the banking sector from other credit
providers. In fact, almost one third of all loans are made by non-
bank entities, such as department stores and insurance companies.
Loans increased by 13% in 2005,the highest increase since 1998.
B U S I N E S S O F C O R P B A N C A • • • A N N U A L R E P O R T 2 0 0 5
Financial Strength(Emerging countries)
0
Malasia
Rusia
India
Hungría
Estonia
7010 20 30 40 50 60
35,2%
10,0%
11,0%
18,3%
24,2%
57,8%
45,0%
45,8%
46,7%
Financial Strength(Industrialized countries)
0
EE.UU.
Canadá
Chile
México
Italia
10020 40 60 80
77,0%
20,6%
75,0%
72,5%
57,8%
45,8%
41,7%
47,2%
63,3%
29
From a regulatory perspective, a number of changes took place
during 2005, mainly, changes to the rules that govern the transfer
of assets received by banks and the treatment of capital in relation
to the accounting treatment of financial instruments.
Finally, 2005 witnessed important changes in payment systems,
demonstrated by the fact that 77% of all payment transactions
(Ch$ 951 million) were done through non-traditional means, such
as the internet or telemarketing. In 1999, only 35% of all
transactions were realized by these methods.
Non Performing Loans and Risk Index
Efficiency Ratio(Operating Expenses / Gross Margin)
Dec-97
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05
Allowances / Total Loans Past Due / Total Loans
1.4%
1,0%0,9%
1,5%1,7% 1,7% 1,6% 1,8% 1,6%
1,2%
1.9%
2,5% 2,5% 2,4%2,3%
1,6%
2,1% 2,0%
Dec-97
70%
65%
60%
55%
50%
45%
40%
Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05
63%
53%
59% 59% 58%55% 54%
53%56%
A N N U A L R E P O R T 2 0 0 5 • • • B U S I N E S S O F C O R P B A N C A
Optimize the use of capital and human resources.
32
C O R P B A N C A I N 2 0 0 5 • • • A N N U A L R E P O R T 2 0 0 5
Fiscal year 2005 was, without a doubt, a redefining year for
CORPBANCA. During 2005, the Bank commenced a new phase of
its long-term strategy, dedicating resources to restructuring its
mix of assets and increasing the number of personnel. The long-
term strategy, however, is grounded in three basic strategies for
growth, which are, efficiency in terms of expenses, controlled
credit risk and profitable growth.
Levels of Activity
In 2005, the loan portfolio (net of inter-bank loans) grew by 12.3%
to Ch$2,818,614 million.
One of the strategies established by CORPBANCA was to change
its mix of financial products and focus on those with a higher
return and larger financial spread. As a result of the implementation
of such strategy, the products that were the most important in
2005 were consumer credits, which grew by 19% as compared
with fiscal year 2004. In addition, placements associated with
individual consumers, such as home mortgage loans, grew by 27%
in twelve months.
Furthermore, the placement of credit cards during 2005 was a
complete success, reporting an increase of 108% (Individual
Banking) as compared with fiscal year 2004. One of the main
factors that explain the substantial increase in credit card
placements is the aggressive campaign carried out by CORPBANCA
in connection with American Express cards (which experienced
an increase of approximately 70% in twelve months). Finally, the
total balance of cards as of December 31, 2005 was 115,214
cards, which is 25% higher than at the amount as of December
31, 2004. In terms of sales, the Bank surpassed U.F. 2 million in
2005.
C O R P B A N C A I N 2 0 0 5
A N N U A L R E P O R T 2 0 0 5 • • • C O R P B A N C A I N 2 0 0 5
33
Commercial loans grew by Ch$139,451 million or 12% as compared
with fiscal year 2004. It must be noted that, notwithstanding this
increase, an important part of the new businesses focus during
2005 was guided toward the segment of medium sized enterprises.
As discussed above, home mortgage-secured loans reported an
increase of 27% in twelve months. That allowed CORPBANCA to
increase its market share in this type of placements, from 2.3%
as of the month of December of 2004 to 2.5% as of the
month of December of 2005, which falls within the strategic
framework established by the Bank in accordance with the
importance that has been given to this type of transactions.
The growth of the loan portfolio (12% in twelve months), compared
to the slight increase reported of provisions for loans (2.8%),
affected the risk index (allowanves for loan losses over total loans)
in a positive way, which went from 1.70% in the month of December
of 2004 to 1.56% at the closing of 2005.
The following chart shows the changes in placements of consumer credits for the years 2004 and 2005:
Year 2005 Year 2004
Jan Feb Mar Apr May Jun Jul Aug
25,000
20,000
15,000
10,000
5,000
0Sep Oct Nov Dec
MM
$
9,899
10,249 8,302
8,40914,244
13,088
11,540
10,228
8,393
11,723
8,863
14,402
15,223
19,578
14,822
17,680
15,041
21,289
15,364
17,240
14,373
17,342
14,451
15,392
34
Even though the amount of non performing loans increased by
almost Ch$4,600 million, their percentage within the total loan
portfolio is within reasonable levels (0.88%). In addition, provisions
on overdue loans of CORPBANCA were 177% at the end of 2005.
The following chart shows changes in the risk index (allowances
for loan losses over total loans), during the last eight years:
As a result of the capital expansion in 2002, and our dividends
policy, CORPBANCA has a significant amount of financial
investments, which prove to be a profitable use of capital. At the
end of 2005, investments formed 10% of our total assets. Such
investments are mainly in instruments with low credit risk.
Financing
In addition to the capitalization of profits, and the adecuate capital
base it creates, the growth of assets of the Bank was financed
mainly by deposits, borrowings obtained in the local market and
funds obtained from the placement of bank bonds during the first
six months of 2005.
Borrowings and other local obligations increased by Ch$55,769
million, due mainly to the increase in time deposits and borrowings.
Banking bonds issued by CORPBANCA, at the close of fiscal year
2005 amounted to Ch$144,762 million.
In addition to the above, it is important to note the increase by
Ch$14,398 million (11%) reported in current accounts. This growth
is critical to CORPBANCA because such liabilities constitute an
important source of funding which does not have a related financial
cost.
On the other hand, and in order to diminish the gaps between the
average terms of our assets and liabilities, during the month of
April of 2005, CORPBANCA placed $250 million dollars, in a
banking bond with an interest rate of 3.0% per annum. The bond
matures in five years. Principle is paid in full at maturity.
C O R P B A N C A I N 2 0 0 5 • • • A N N U A L R E P O R T 2 0 0 5
1998 1999 2000 2001 2002 2003 2004 2005
2.60%
2.40%
2.20%
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
Corp Banca Chilean Banking Sector
1.90%
1.60%
1.61%
1.56%
35
In addition, it should be noted that, beginning in October of 2005,
CORPBANCA has been measuring its required liquidity under an
“adjusted” scheme, pursuant to an authorization granted by the
Superintendency of Banks and Financial Institutions in order to
allow the Bank to operate with fewer restrictions. Such
authorization was granted on the basis of the accuracy of the
Bank’s liquidity model, which was rigorously evaluated by the
analysts of the Superintendency. The liquidity model is capable
of calculating detailed estimates of the Bank’s income (for instance,
payment of credits, payment of credit cards, sale of investment
products and deposits) and disbursements of cash (for instance,
new credits, new investments, payments of dividends and no-
renewal of deposits). The creation of the model required information
and experience from diverse areas of the Bank.
The authorization was also granted based on the fact that the
Bank is able to generate the required information on a daily basis.
In order to generate such information, the Information and
Technology Area required special servers and, more importantly,
it required the design of a procedure, which minimized the time
needed to gather such information. At present, the calculation is
made daily; through a process that is almost 100% automated,
and which has a minimal degree of error.
In accordance with the relevant regulation, a bank would be
authorized to operate with the adjusted model if, in the opinion
of the Superintendency, the institution counts with a solid
management of financial risks.
Results
CORPBANCA’s consolidated net income before taxes as of December
31, 2005 as Ch$63,362 million, a nominal increase of 10.6% as
compared to the preceding year. Consolidated net income for the
year was Ch$52,633 million. The difference between net income
and pre-tax net income reflects the establishment by CORPBANCA
of an income tax provision at the beginning of the second half of
2004 following the full utilization of tax loss carryforwards relating
to subordinated debt of Corp Banca held by the Central Bank of
Chile.
Gross margin grew by Ch$5,611 million for 2005. This increase
was due mainly to the increase reported in fee income and gains
from trading activities. The increase in fee income is very important
to CORPBANCA because it demonstrates that the Bank is delivering
value to its clients and thereby becoming a significant supplier of
financial services.
During 2005, CORPBANCA experienced an increase of 12% in the
amount of total loans which was partially offset by smaller financial
A N N U A L R E P O R T 2 0 0 5 • • • C O R P B A N C A I N 2 0 0 5
36spreads as a result of an increase in interest rates. Given the
foregoing, interest and net adjustments remained practically the
same when comparing 2005 and 2004.
Even though operating expenses increased by Ch$3,412 million
as compared to 2004, CORPBANCA had a consolidated efficiency
ratio of 40.0% as of December 31, 2005, thereby becoming one
of the most efficient banks in the local banking sector. It’s important
to note that the increase in operating expenses was mainly due
to a raise in salaries and increased hiring of personnel needed to
meet the Bank’s higher levels of activity. In fact, the total number
of employees of the Bank and of its affiliates went from 1,963 as
of December 31, 2004 to 2,170 as of December 31, 2005.
The charge to income on account of provisions and charge-off
expenses, net of recoveries, dropped by Ch$4,941 million (26%),
in line with the Bank’s objective of maintaining a portfolio with
an adecuate level of risk. The level of expenses for provisions and
net charge offs over loans portfolio decreased to 0.5% by the
end of 2005, contrasting with 0.7% of the previous year.
As for the risk index, CORPBANCA, as well as the whole of the
banking sector, experienced a favorable trend. However, in the
specific case of the Bank, our stronger focus on the housing mort-
gages portfolio and direct payment agreements (for the consumer
product and large enterprises) has resulted in a reduction of
exposure to risk.
Return of equity dropped from 15.6% for 2004 to 14.8% for 2005.
This decrease was due in part to the increase in CORPBANCA's
capital base as a result of the capitalization of 50% of its 2004
net income and to the impact of the recordation of tax provisions
in the second half of 2004 following the full utilization of tax loss
carryforwards. On a pre-tax basis, CORPBANCA's return on equity
for 2005 was 17.9% compared to 17.6% for 2004.
Risk Rating
During 2005, CORPBANCA maintained its national and international
risk rating for its debt instruments and shares over the course of
2005, which reflects the Bank’s good financial condition, in terms
of solvency, good financial results and control risk. It must be
noted that the Feller Rate rating agency revised its rating of the
Bank from Stable to Positive.
CORPBANCA had a consolidated efficiencyindex of 40.0% as of December 31, 2005,thereby becoming one of the most efficientbanks in the local banking sector.
C O R P B A N C A I N 2 0 0 5 • • • A N N U A L R E P O R T 2 0 0 5
37
International Ratings
Local Ratings
A N N U A L R E P O R T 2 0 0 5 • • • C O R P B A N C A I N 2 0 0 5
FITCHSovereign RiskLong term foreign currency ALong term local currency A+CORPBANCAIndividual CSupport 3Foreign CurrencyShort term F2Long term BBB+Local CurrencyShort term F2Long term BBB+NationalShort term F1 (CHL)Long term AA- (CHL)
STANDARD & POOR'SBBB+/Stable/A-2
FITCH FELLER-RATELess than 1-year deposits Level 1 Level 1+More than 1-year deposits AA- AA-Letters of Credit AA- AA-Bonds AA- AA-Subordinated Bonds A+ A+Shares Level 2 1 Class Level 2
38
Recognitions and Distinctions
According to a survey carried out by the specialty magazine
“América Economía”, seven Chilean banks were in the 25 better
managed banks in Latin America. In the survey, CORPBANCA
ranked in seventh place. Also, CORPBANCA ranked 31st in the
ranking of the 250 largest banks of the Continent’s Southern Tip.
In April of 2005, “Emerging Markets” (an affiliate of Euromoney
Institutional Investor) published the results of a survey of Latin
American banks; CORPBANCA was part of the group of institutions
that lead the ranking.
Risk Factors
The risk factors associated to the business of CORPBANCA and
the banking business in general are, mainly, four. The first risk is
the volatility created by inflation because projected inflation rates
are absorbed into the marketing and pricing of banking products.
The second risk is created by variations in the exchange rate,
because of the Bank’s exposure to foreign currencies, directly
affecting the results of the Bank. The third risk is created by
variations in the interest rate because such variations affect the
pricing of the Bank’s products, which are adjusted to track the
movements in interest rates. The fourth risk is the general
performance of the economy. In general terms, CORPBANCA and
the banking sector as a whole have the tendency to move in the
same direction followed by the economy of the country, that is,
when the economy slows down, the projected growth of banks
tends to be less. A natural consequence of this development is
variations in credit risk, which constitute one of the principal
elements in evaluating the financial position of a bank.
CORPBANCA currently has a risk index (allowances for loan loses
over total loans) lower the risk index of the Chilean banking sector
as whole. In order to adequately cover the risks indicated above,
current regulation establishes maximum allowable mismatches,
a policy which forms an integral part of CORPBANCA’s exposure
policy.
Changes in the Risk Index
(Allowances over total loans)
C O R P B A N C A I N 2 0 0 5 • • • A N N U A L R E P O R T 2 0 0 5
1998 1999 2000 2001 2002 2003 2004 2005
2.60%
2.40%
2.20%
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
Corp Banca Chilean Banking Sector
1.90%
1.60%
1.61%
1.56%
39
I N V E S T M E N T A N D F U N D I N G P O L I C E S
The Bank’s Finance and International Division specializes in financial
management. It is charged with a large part of the decision making
process in terms of investments and funding for the Bank, as well
as the proper treatment of mismatches on the balance sheet.
There is also a committee, which is formed with representatives
from the various groups involved in the management of the Finance
Division, which is charged with the planning, supervision and
management risk using meticulous risk analysis. The Committee
of Assets and Liabilities meets on a weekly basis in order to stay
informed of overall long-term trend, as well as up-to-date potential
high risks.
The Committee has a Manual that establishes guidelines for the
direction of the Finance Area created by the senior management
of the Bank.
The Committee of Assets and Liabilities analyzes the main concerns
related with the financial management of the Bank, including,
among others, the following:
• Gapping Management,
• Investments,
• Financing, and
• Risk Analisis.
More detailed descriptions of the policies of the Bank can be
found below.
Gapping Management
The Bank allows itself to have its balance sheet in foreign currency
unbalanced, in such a manner as to seek profits before movements
of the parities in the foreign currency markets.
In addition, CORPBANCA manages the balance sheet in respect
of the mix of assets and liabilities in terms of period and indexation.
In order to obtain the best possible level of profitability from this
situation, the area of Finance handles this mismatch through an
active administration of the Gapping.
Investment Policy
The Bank maintains three investment portfolios in Fixed Income:
- Investments to Due Date,
- Trading Investments, and
- Investments Available for Sale.
Each one of these investment portfolios has different objectives,
and therefore their management policies differ.
Investments to Due Date: This is an investment portfolio, which
was formed to hold investments through the length of their term,
until final maturity. The main objective of this portfolio is to obtain
the benefits of positive financial margins, considering that the
portfolio has been removed from movements of the main financial
variables that could affect its yield as reflected in the Statement
of Income of the Bank.
A N N U A L R E P O R T 2 0 0 5 • • • I N V E S T M E N T A N D F U N D I N G P O L I C E S
40
Trading Investments: The Trading portfolio is basically aimed at
realizing on short-term arbitrages of movements of interest rates
to generate a profit for difference of prices. The composition of
this portfolio counts both with fixed income instruments and
interest rate derivative contracts.
Investments Available for Sale: This portfolio is formed exclusively
by Fixed Income instruments, which would not be classified in the
portfolios referred above. It is structured with medium term
interest rate instruments, which must be kept for a period in excess
of that considered in the trading portfolio. Notwithstanding the
foregoing, the portfolio is also expected to produce positive
financial margins while the instruments are kept in the balance
sheet.
Funding Policy
The Funding of the Investments and, in general, of all the areas
of the Bank, is the responsibility of the Area of Finance. Through
financial tools, which are available mainly in the local market, the
Area of Finance must optimize the structure of the Balance Sheet,
particularly with a focus to reduce costs. For these purposes, the
Bank generally uses credit instruments such as time deposits,
funding forward contracts and structured bonds.
Risk Analysis
The Bank has an Area of Financial Risks, which oversees the
effectiveness of the Treasury Division’s measurements and estimate
of risk.
The Area of Financial Risks reports to the Committee of Assets
and Liabilities, same as the Treasury Division, on a weekly basis.
For each one of the different lines of business of the financial area
of the Bank that has been described above, the Financial Risks
Division measures the exposure on the capital of the Bank based
on the management by Treasury. Different indicators have been
created for the different types of exposure.
The most common risk is the mismatch of foreign currency and
Financial Investments. The Bank counts with an internal model
of measurement of market risk, which adopts a VaR – Value at
Risk methodology– for the estimate of losses in respect of the
capital assigned to the different financial positions assumed. In
this manner, the Area of Financial Risks guards against inopportune
losses that may occur.
I N V E S T M E N T A N D F U N D I N G P O L I C E S • • • A N N U A L R E P O R T 2 0 0 5
A N N U A L R E P O R T 2 0 0 5 • • • P A T E N T S A N D O T H E R I N T E L L E C T U A L P R O P E R T Y
41
All the trademarks used by the Bank are duly registered in the Register of Marks and Patents of the Chilean Department of Industrial
Property.
P A T E N T S A N D O T H E R I N T E L L E C T U A L P R O P E R T Y
As a permanent way to comunicate with our customers
and on line advisory for their requires.
44
M A I N A S S E T S • • • A N N U A L R E P O R T 2 0 0 5
M A I N A S S E T S
The main fixed assets owned by CORPBANCA as of December 31, 2005 were its Main Office located at Huérfanos 1072, Santiago, and
32 branches throughout the entire country.
Following is a listing of the branches of the Bank, including those that are owned and leased by the Bank.
Network of Branches of CORPBANCA
Region IArica 21 de Mayo 115Iquique Av. Serrano 280Iquique (C.Aux.) Recinto Zofri
Region IIAntofagasta Av. San Martín 2668
Region IIICopiapó Av. Chacabuco 481Vallenar Av. Arturo Prat 1070
Región IVLa Serena Balmaceda 540Coquimbo Av. Aldunate 795Ovalle Victoria 271
Region VValparaíso Av. Arturo Prat 737Viña del Mar Av. Ecuador 104
Region VIRancagua Independencia 699San Fernando M. Rodríguez 840
Region VIITalca Uno Sur 1132Curicó Estado 370
Region VIIIChillán Constitución 550Los Angeles Colón 398Concepción Av. B. O´Higgins 612Barrio Universitario Galería El Foro s/n, Barrio UniversitarioTalcahuano Av. Colón 657Base Naval Av. Jorge Montt 102El Trébol Autopista Concepción 8671 L-B5
Region IXTemuco Arturo Prat 743
Region XValdivia Av. Picarte 370Osorno Manuel A. Matta 624Puerto Montt Av. Urmeneta 541
Region XIIPunta Arenas Av. Magallanes 944
45
A N N U A L R E P O R T 2 0 0 5 • • • M A I N A S S E T S
Region IArica 21 de Mayo 115Iquique Av. Serrano 280Iquique (C.Aux.) Recinto Zofri
Region IIAntofagasta Av. San Martín 2668
Region IIICopiapó Av. Chacabuco 481Vallenar Av. Arturo Prat 1070
Región IVLa Serena Balmaceda 540Coquimbo Av. Aldunate 795Ovalle Victoria 271
Region VValparaíso Av. Arturo Prat 737Viña del Mar Av. Ecuador 104
Region VIRancagua Independencia 699San Fernando M. Rodríguez 840
Region VIITalca Uno Sur 1132Curicó Estado 370
Region VIIIChillán Constitución 550Los Angeles Colón 398Concepción Av. B. O´Higgins 612Barrio Universitario Galería El Foro s/n, Barrio UniversitarioTalcahuano Av. Colón 657Base Naval Av. Jorge Montt 102El Trébol Autopista Concepción 8671 L-B5
Region IXTemuco Arturo Prat 743
Region XValdivia Av. Picarte 370Osorno Manuel A. Matta 624Puerto Montt Av. Urmeneta 541
Region XIIPunta Arenas Av. Magallanes 944
Metropolitan RegionMain Office Huérfanos 1072Alameda Av. Bernardo O´Higgins 2206Apoquindo Av. Apoquindo 4759Bernardo O´Higgins Av. Bernardo O´Higgins 1228El Bosque El Bosque Norte 0137Gran Avenida Av. José Miguel Carrera 5120La Dehesa Av. José Alcalde Délano 10682 L/2Maipú Av. Pajaritos 1783Ñuñoa Av. Irarrázaval 3333Panamericana Norte Av. Pdte. Eduardo Frei Montalva 1788Plaza Vespucio Froilan Roa 7205 L.121 al 124Providencia Av. Providencia 1422Puente Alto Concha y Toro 1149 L/59San Bernardo Arturo Prat 495San Borja Av. Bernardo O´Higgins 288San Joaquín Av. Vicuña Mackenna 4860Santiago 2000 Huérfanos 770-BSanta Elena Av. Santa Elena 2340Suecia Suecia 024Vitacura Av. Vitacura 6635El Golf Av. Apoquindo 3500
Network of Branches of Bancondell
Region IArica 21 de Mayo 115Iquique Serrano 280
Region IICalama Almirante Latorre 1925Antofagasta Antonio Matta 2537
Region IIICopiapó Av. Chacabuco 481Vallenar Av. Arturo Prat 1070
Region IVLa Serena Balmaceda 540Coquimbo Aldunate 795Ovalle Victoria 271
Region VQuillota Maipú 352San Felipe Arturo Prat 177Viña del Mar Arlegui 176Valparaíso Cochrane 754San Antonio Centenario 127
46
M A I N A S S E T S • • • A N N U A L R E P O R T 2 0 0 5
Region VIRancagua Campos 381
Region VIITalca Uno Sur 1132Curicó Estado 370Linares Independencia 634-A Region VIIIChillán Constitución 550Concepción I Barros Arana 428Talcahuano Colón 657Los Angeles Colón 398 Region IXTemuco Arturo Prat 743 Region XValdivia Av. Picarte 370Osorno Av. Matta 624Puerto Montt Av. Urmeneta 541Castro Blanco 208
Region XICoyhaique Francisco Bilbao 204
Region XIIPunta Arenas Magallanes 944
Metropolitan RegionAgustinas Agustinas 799Ahumada Ahumada 252Estación Central Av. Lib. Bernardo O´Higgins 3015Mapocho Puente 731Maipú Av. Pajaritos 1783Moneda Moneda 893Ñuñoa Irarrázaval 2440Plaza Vespucio Vicuña Mackenna 7110 Loc. 1-2-3
BoulevardSan Bernardo Arturo Prat 495Estado Estado 350Puente Alto Concha y Toro 286 Loc. 12 - 17
47
A N N U A L R E P O R T 2 0 0 5 • • • S U B S I D I A R I E S A N D B U S I N E S S S U P P O R T C O M P A N I E S
CORPBANCA participates in a series of companies, which are
divided in Affiliate Companies and related Business Support
Companies. As of the end of the fiscal year 2005, these companies
provided CORPBANCA with net income of Ch$7,707 million, an
increase of 33% as compared to 2004.
Subsidiaries Companies
1.Corpbanca Administradora General de Fondos S.A.:
The company’s corporate purpose is to manage the assets of
mutual funds for the accounts of their participants. The
investments are made both in fixed income instruments and
variable income instruments and in the local and foreign markets.
During fiscal year 2005. The company generated a net income
of Ch$1,325 million, with a rate of profitability of 45.8% on
the capital invested. As of December 31, 2005, the subscribed
for and paid in capital was Ch$1,570 million; the participation
of CORPBANCA in the ownership of the company reached
99.996%, an investment equal to 0.05% of the total assets of
the Bank. Management of the company is the following:
Board of Directors
President : Cristian Canales Palacios (2)
Director : Osvaldo Barrientos Valenzuela (2)
Director : Guido Silva Escobar (2)
Director : Enrique Martinez Figueroa (2)
Director : Fernando Serrano Gutierrez (2)
General Manager : Pedro Silva Yrarrazaval
2.Corpbanca Corredores de Bolsa S.A.: The company’s
corporate purpose is to intermediate securities for the account
of third parties, as well as administer a portfolio of fixed income
investments and act as a foreign currencies broker. As of
December 31, 2005, the company had Ch$3,685 million, which
translated into in a profitability of 22.5% on the capital invested.
As of December 31, 2005, the subscribed for and paid up capital
of Corpbanca Corredores de Bolsa S.A. amounted to Ch$12,701
million, and the participation of CORPBANCA in the ownership
of the company reached 99.992%, which investment was
equivalent to 0.37% of the total assets of the Bank. Management
of the company the following:
Board of Directors
President : Pablo de la Cerda Merino (3)
Director : Nazir Alberto Selman Hasbún (2)
Director : Jorge Franetovic Yob (2)
Director : Claudio Chamorro Carrizo (2)
Director : Armando Ariño Joiro (2)
General Manager : Carlos Ubeda Pashold
3.Corpbanca Corredores de Seguros S.A.: The company’s
corporate purpose is brokering insurance to its clients, as well
as those of the Bank. As of December 31, 2005, the company
reported income of Ch$2,286 million, with a subscribed for and
paid up capital of Ch$54 million. The participation of
CORPBANCA in the ownership of the company reached 99.99%,
which investment was equivalent to 0.002% of the total assets
S U B S I D I A R I E S A N D B U S I N E S S S U P P O R T C O M P A N I E S
Region VIRancagua Campos 381
Region VIITalca Uno Sur 1132Curicó Estado 370Linares Independencia 634-A Region VIIIChillán Constitución 550Concepción I Barros Arana 428Talcahuano Colón 657Los Angeles Colón 398 Region IXTemuco Arturo Prat 743 Region XValdivia Av. Picarte 370Osorno Av. Matta 624Puerto Montt Av. Urmeneta 541Castro Blanco 208
Region XICoyhaique Francisco Bilbao 204
Region XIIPunta Arenas Magallanes 944
Metropolitan RegionAgustinas Agustinas 799Ahumada Ahumada 252Estación Central Av. Lib. Bernardo O´Higgins 3015Mapocho Puente 731Maipú Av. Pajaritos 1783Moneda Moneda 893Ñuñoa Irarrázaval 2440Plaza Vespucio Vicuña Mackenna 7110 Loc. 1-2-3
BoulevardSan Bernardo Arturo Prat 495Estado Estado 350Puente Alto Concha y Toro 286 Loc. 12 - 17
48
S U B S I D I A R I E S A N D B U S I N E S S S U P P O R T C O M P A N I E S • • • A N N U A L R E P O R T 2 0 0 5
of the Bank. Management of the company is as follows:
Board of Directors
President : Olivia Brito Bahamonde (2)
Director : Osvaldo Barrientos Valenzuela (2)
Director : Carlos Aracena Mellado (2)
Director : Nazir Alberto Selman Hasbún (2)
Director : Pablo de la Cerda Merino (2)
General Manager : Roberto Vergara Kyling
4.Corpbanca Asesorías Financieras S.A.: The company’s
corporate purpose is to conduct studies for, provide assistance
to and carry out restructuring for its clients. As of December
31, 2005, Corpbanca Asesorías Financieras S.A. reported income
of Ch$250 million, which represented a yield on investment of
62.01%. The subscribed for and paid up capital of the company
amounted to Ch$153 million. The participation of CORPBANCA
in the ownership of the company reached 99.99% and the
investment was equivalent to 0.005% of the total assets of the
Bank. Management of the company is as follows:
Board of Directors
President : Christian Schiessler García (2)
Vice President : Christian Samsing Stambuk (1)
Director : José Francisco Sánchez Figueroa (2)
Director : Héctor Valdés Ruiz
Director : Cristián Canales Palacios (2)
General Manager : Roberto Baraona Undurraga
Business Support Companies
1.Nexus S.A.: The company’s corporate purpose is the processing
of credit and debit cards as efficiently as possible. As of December
31, 2005, the subscribed for and paid up capital in the company
was of Ch$3,727 million. The participation of CORPBANCA in
the ownership of Nexus is 12.90%, which investment represents
0.01% of the total assets of the Bank. Management of the
company is as follows:
Board of Directors
President : Jorge Díaz Vial
Vice President : Mario Gaete Hörmann
Director : Jeremy Pallant
Director : Fernando León Sade
Director : Osvaldo Barrientos Valenzuela (2)
General Manager : Carlos Johnson Lathrop
CORPBANCA participates in a series of companies, which are
divided in Affiliate Companies and related Business Support
Companies. As of the end of the fiscal year 2005, these companies
provided CORPBANCA with net income of Ch$7,707 million, an
increase of 33% as compared to 2004.
Subsidiaries Companies
1.Corpbanca Administradora General de Fondos S.A.:
The company’s corporate purpose is to manage the assets of
mutual funds for the accounts of their participants. The
investments are made both in fixed income instruments and
variable income instruments and in the local and foreign markets.
During fiscal year 2005. The company generated a net income
of Ch$1,325 million, with a rate of profitability of 45.8% on
the capital invested. As of December 31, 2005, the subscribed
for and paid in capital was Ch$1,570 million; the participation
of CORPBANCA in the ownership of the company reached
99.996%, an investment equal to 0.05% of the total assets of
the Bank. Management of the company is the following:
Board of Directors
President : Cristian Canales Palacios (2)
Director : Osvaldo Barrientos Valenzuela (2)
Director : Guido Silva Escobar (2)
Director : Enrique Martinez Figueroa (2)
Director : Fernando Serrano Gutierrez (2)
General Manager : Pedro Silva Yrarrazaval
2.Corpbanca Corredores de Bolsa S.A.: The company’s
corporate purpose is to intermediate securities for the account
of third parties, as well as administer a portfolio of fixed income
investments and act as a foreign currencies broker. As of
December 31, 2005, the company had Ch$3,685 million, which
translated into in a profitability of 22.5% on the capital invested.
As of December 31, 2005, the subscribed for and paid up capital
of Corpbanca Corredores de Bolsa S.A. amounted to Ch$12,701
million, and the participation of CORPBANCA in the ownership
of the company reached 99.992%, which investment was
equivalent to 0.37% of the total assets of the Bank. Management
of the company the following:
Board of Directors
President : Pablo de la Cerda Merino (3)
Director : Nazir Alberto Selman Hasbún (2)
Director : Jorge Franetovic Yob (2)
Director : Claudio Chamorro Carrizo (2)
Director : Armando Ariño Joiro (2)
General Manager : Carlos Ubeda Pashold
3.Corpbanca Corredores de Seguros S.A.: The company’s
corporate purpose is brokering insurance to its clients, as well
as those of the Bank. As of December 31, 2005, the company
reported income of Ch$2,286 million, with a subscribed for and
paid up capital of Ch$54 million. The participation of
CORPBANCA in the ownership of the company reached 99.99%,
which investment was equivalent to 0.002% of the total assets
A N N U A L R E P O R T 2 0 0 5 • • • S U B S I D I A R I E S A N D B U S I N E S S S U P P O R T C O M P A N I E S
49
of the Bank. Management of the company is as follows:
Board of Directors
President : Olivia Brito Bahamonde (2)
Director : Osvaldo Barrientos Valenzuela (2)
Director : Carlos Aracena Mellado (2)
Director : Nazir Alberto Selman Hasbún (2)
Director : Pablo de la Cerda Merino (2)
General Manager : Roberto Vergara Kyling
4.Corpbanca Asesorías Financieras S.A.: The company’s
corporate purpose is to conduct studies for, provide assistance
to and carry out restructuring for its clients. As of December
31, 2005, Corpbanca Asesorías Financieras S.A. reported income
of Ch$250 million, which represented a yield on investment of
62.01%. The subscribed for and paid up capital of the company
amounted to Ch$153 million. The participation of CORPBANCA
in the ownership of the company reached 99.99% and the
investment was equivalent to 0.005% of the total assets of the
Bank. Management of the company is as follows:
Board of Directors
President : Christian Schiessler García (2)
Vice President : Christian Samsing Stambuk (1)
Director : José Francisco Sánchez Figueroa (2)
Director : Héctor Valdés Ruiz
Director : Cristián Canales Palacios (2)
General Manager : Roberto Baraona Undurraga
Business Support Companies
1.Nexus S.A.: The company’s corporate purpose is the processing
of credit and debit cards as efficiently as possible. As of December
31, 2005, the subscribed for and paid up capital in the company
was of Ch$3,727 million. The participation of CORPBANCA in
the ownership of Nexus is 12.90%, which investment represents
0.01% of the total assets of the Bank. Management of the
company is as follows:
Board of Directors
President : Jorge Díaz Vial
Vice President : Mario Gaete Hörmann
Director : Jeremy Pallant
Director : Fernando León Sade
Director : Osvaldo Barrientos Valenzuela (2)
General Manager : Carlos Johnson Lathrop
2.Combanc S.A.: The company’s corporate purpose is to provide
payment clearing services and other activities related or
complementary to the banking business. As of December 31,
2005, the subscribed for and paid up capital of the company
was Ch$1,673 million. The participation of CORPBANCA in the
property of Combanc is of 13.67%, which investment represents
0.01% of the total assets of the Bank. Management of the
company is as follows:
Board of Directors
President : Mario Duque A.
Director : Alejandro Alarcón P.
Director : Segismundo Schulin-Zenthen S.
Director : Joaquín Cortez H.
Director : Héctor Valdes R.
Director : Roberto Busto K.
Director : Carlos Budnevich L.
Director : Patricio Claro G.
Director : Andrés Sanfuentes V.
General Manager : Felipe Ledermann B.
3.Transbank S.A.: is a support company to the banking business
whose shareholders are the most important banking and financial
entities of the country. The company’s corporate purpose is to
provide support in the management of credit cards (Visa,
Mastercard, Magna, American Express and Diners Club) and
debit cards Redcompra (Electron and Maestro). In addition, it
handles internet payments systems, Webpay, which allows for
a safe exchange of information. As of December 31, 2005, the
subscribed for and paid in capital of the company was Ch$4,348
million. The participation of CORPBANCA in the property of
Transbank is of 8.72%, which investment represents 0.01% of
the total assets of the Bank. Management of the company is
as follows:
Board of Directors
President : Hernán Somerville Senn
Vice President : Roberto Bustos Kaempffer
Director : Alejandro Cuevas Merino
Director : Sebastián del Campo Edwards
Director : Jorge Díaz Vial
Director : Adolfo García-Huidobro Ochagavía
Director : Jorge Lafrentz Fricke
Director : Jeremy Pallant
Director : Gerardo Sapag Álvarez
Director : Héctor Valdés Ruíz
General Manager : Felipe Brahm Garcia
(1) Corp Banca‘s Chief Executive Officer.
(2) Manager of Corp Banca.
(3) Legal Counselor of Corp Banca.
50
D I V I D E N D S P O L I C Y • • • A N N U A L R E P O R T 2 0 0 5
The policy of dividends set forth by CORPBANCA and adopted by the Shareholders’ Meeting is to capitalize 50% of the previous year’s
net income. The policy began in 2002 with the net income of 2001. At the Shareholders’ Meeting held in February of 2005, the Bank
paid a dividend in the aggregate of Ch$25,383.6 million, corresponding to 50% of the net income of 2004 (Ch$50,767.3 million).
D I S T R I B U T I O N O F P R O F I T S
D I V I D E N D P O L I C Y
Year Profit available Profits Attributed Percentage Div. per Sharefor distribution (previous year) to Fiscal Year of profit (Ch$ of
(Ch$ Million) (Ch $Million) distributed each year)2002 14.221,7 28.443,4 2001 50,0% 0,0834372003 17.776,5 35.553,0 2002 50,0% 0,0783422004 25.061,7 50.123,5 2003 50,0% 0,1104482005 25.383,6 50.767,3 2004 50,0% 0,111866
A N N U A L R E P O R T 2 0 0 5 • • • T R A D I N G V O L U M E A N D P R I C E H I S T O R Y O F S H A R E S
51
The following table shows the trading volume and price history of the shares of CORPBANCA on the Santiago Stock Exchange during 2004
and 2005:
T R A D I N G V O L U M E A N D P R I C E H I S T O R Y O F S H A R E S
Year 2003 N° Trans. Average Closing High Low Average U / P Stock Volume Amount Market Cap.
First Quarter 232 1,445,575,707 2.15 2.18 2.1 3,088,136,891 11.24 367,034,139,042Second Quarter 484 2,292,091,176 2.63 2.74 2.4 5,840,844,819 12.61 498.534.598.519Third Quarter 505 1,898,942,348 2.79 2.88 2.6 5,208,733,919 15.00 632,320,556,408Fourth Quarter 1,807 26,173,992,996 3.11 3.30 2.8 76,689,429,674 15.48 706,444,257,996
Year 2004 N° Trans. Average Closing High Low Average U/P StockVolume Amount Market Cap.
First Quarter 1,570 10,947,679,957 3.14 3.21 3.0 34,454,375,694 14.55 712,495,172,412Second Quarter 1,018 5,215,106,389 2.97 3.10 2.9 15,406,969,204 13.21 673,920,593,014Third Quarter 1,401 4,703,949,655 3.18 3.21 3.0 14,875,841,293 13.92 722,327,908,337Fourth Quarter 1,379 4,825,028,916 3.20 3.32 3.1 15,441,130,072 14.05 726,109,729,846
Year 2005 N° Trans. Average Closing High Low Average U/P StockVolume Amount Market Cap.
First Quarter 3,737 7,095,175,134 3.03 3.21 3.0 21,968,454,844 13.54 687,535,150,448Second Quarter 3,218 5,719,405,525 3.05 3.10 2.9 17,120,306,404 14.29 691,846,426,969Third Quarter 3,127 5,314,861,895 3.19 3.22 3.0 16,544,638,023 14.75 722,706,090,488Fourth Quarter 2,042 3,587,103,889 2.80 3.20 2.8 10,781,665,652 12.07 635,346,013,616
Durante el año 2005, las transacciones de acciones de CORPBANCA efectuadas por el principal accionista, directores y principales ejecutivos,
son las siguientes:
Corp Group Banking S.A.
Fecha Compra Fecha Venta Cantidad Precio Valor totalde la Inversión
0