As filed with the Securities and Exchange Commission on ~~April 30, 2015~~March 31, 2016

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

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Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

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If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

This Annual Report on Form 20-F contains statements that constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include “believes,” “expects,” “intends,” “plans,” “projects,” “estimates” or “anticipates” and similar expressions. These statements appear throughout this Annual Report, including, without limitation, under “Item 3. Key Information—D. Risk Factors”, “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects”, are not based on historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control and include statements regarding our current intent, belief or expectations with respect to (1) our asset growth and financing plans, (2) trends affecting our financial condition or results of operations, (3) the impact of competition and regulations, (4) projected capital expenditures, and (5) liquidity. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described in such forward-looking statements included in this Annual Report as a result of various factors (including, without limitation, the actions of competitors, future global economic conditions, market conditions, currency exchange rates and operating and financial risks), many of which are beyond our control. The occurrence of any such factors, not currently expected by us, would significantly alter the results set forth in these statements.

Factors that could cause actual results to differ materially and adversely include, but are not limited to:

trends affecting our financial condition or results of operations;

our dividend policy;

changes in the participation of our shareholders or any other factor that may result in a change of control;

the amount of our indebtedness;

changes in general economic, business, regulatory, political or other conditions in the Republic of Chile, or Chile, or the Republic of Colombia, or Colombia, or changes in general economic or business conditions in Latin America;

changes in capital markets in general that may affect policies or attitudes towards lending to Chile or Colombia, Chilean or Colombian companies or securities issued by Chilean companies;

inflation or deflation;

unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms;

unanticipated turbulence in interest rates;

movements in currency exchange rates;

movements in equity prices or other rates or prices;

changes in Chilean, Colombian and foreign laws and regulations;

changes in Chilean or Colombian tax rates or tax regimes;

competition, changes in competition and pricing environments;

our inability to hedge certain risks economically;

the adequacy of our loss allowances, provisions or reserves;

technological changes;

changes in consumer spending and saving habits;

successful implementation of new technologies;

loss of market share;

changes in, or failure to comply with, applicable banking, insurance, securities or other regulations;

difficulties in successfully integrating recent and future acquisitions into our operations;

our ability to successfully complete the implementation of a new information technology core banking system in Colombia, as part of the integration process in Colombia;

consequences of the pending acquisition of a controlling interest in us by Itaú Unibanco Holding S.A, or Itaú Unibanco, as well as the merger of Banco Itaú Chile, or Itaú Chile, with and into us and the potential acquisition of Itaú BBA Colombia S.A., Corporación Financiera, or Itaú Colombia by us or the merger of Itaú Colombia with and into Banco CorpBanca Colombia, S.A., or CorpBanca ~~Colombia;~~Colombia (the Itaú-CorpBanca Merger);

the merged bank’s abilities to achieve revenue benefits and cost savings from the integration between CorpBanca’s and Banco Itaú Chile’s businesses and assets; and

the other factors identified or discussed under “Item 3. Key Information—D. Risk Factors” in this Annual ~~Report.~~Report

You should not place undue reliance on such statements, which speak only as of the date that they were made. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we may make in the future. We do not undertake any obligation to release publicly any revisions to such forward-looking statements after the date of this Annual Report to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Neither CorpBanca nor Banco Itaú Chile, as a matter of course make public projections as to future net revenues, costs, or other results. However, the both banks have prepared prospective financial information for inclusion in this document mainly related to estimated revenue synergies, cost savings, funding costs and capital position to present the estimated impacts of the merge with Banco Itaú Chile. This prospective financial information was not prepared in accordance with the guidelines established by the American Institute of Certified Public Accounts (the “AICPA”) with respect to prospective financial information.

Statements relating to the cost savings that both, CorpBanca and Banco Itaú Chile expect to achieve following the transaction described in this document are based on assumptions which in the view of the bank’s management, were prepared on a reasonable basis, reflect the best currently available estimates and judgments, and present, to the best of such management’s knowledge and belief, the expected course of action and the expected future financial impact on performance of the bank due to the merger with Banco Itaú-Chile. However, the assumptions about these expected cost savings and growth opportunities are inherently uncertain and, though considered reasonable by management as of the date of its preparation, are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. There can be no assurance that the banks will be able to successfully implement the strategic or operational initiatives that are intended.

Neither CorpBanca’s independent auditors, nor any other independent accountants, have complied with, examined, or performed any procedures with respect to the prospective financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, or disclaim any association with, the prospective financial information.

We are a banking corporation organized under the laws of Chile. The majority of our directors or executive officers are not residents of the United States and a substantial portion of our assets and the assets of these persons are located outside the United States. As a result, it may not be possible for you to effect service of process within the United States upon us or such persons or to enforce against them or us in the United States or other foreign courts, judgments obtained in the United States predicated upon the civil liability provisions of the federal securities laws of the United States.

No treaty exists between the United States and Chile for the reciprocal enforcement of court judgments. Chilean courts, however, have enforced final judgments rendered in the United States, subject to the review in Chile of the United States judgment in order to ascertain whether certain basic principles of due process and public policy have been respected, without reviewing the merits of the subject matter of the case. If a United States court grants a final judgment in an action based on the civil liability provisions of the federal securities laws of the United States, enforceability of this judgment in Chile will be subject to the obtaining of the relevant “exequatur” (i.e., recognition and enforcement of the foreign judgment) according to Chilean civil procedure law in force at that time, and consequently, subject to the satisfaction of certain factors. Currently, the most important of these factors are the absence of any conflict between the foreign judgment and Chilean laws (excluding for this purpose the laws of civil procedure) and public policies; the absence of a conflicting judgment by a Chilean court relating to the same parties and arising from the same facts and circumstances; the absence of any further means for appeal or review of the judgment in the jurisdiction where judgment was rendered; the Chilean courts’ determination that the United States courts had jurisdiction; that service of process was appropriately served on the defendant and that the defendant was afforded a real opportunity to appear before the court and defend its case; and that enforcement would not violate Chilean public policy.

In general, the enforceability in Chile of final judgments of United States courts does not require retrial in Chile.

We are a Chilean bank and maintain our financial books and records in Chilean pesos and prepare our consolidated financial statements in accordance with International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or IASB. ~~Unless otherwise indicated herein, as used hereafter IFRS refers to the standards issued by the IASB.~~

As required by local regulations, our consolidated financial statements filed with the Chilean Superintendency of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras), also referred to as the SBIF, have been prepared in accordance with Chilean accounting principles or Chilean Bank GAAP, issued by the ~~SBIF.~~SBIF; nevertheless, SBIF’s regulations provide that unless specifically regulated by this agency, our financial statements shall be prepared in accordance with IFRS, as issued by the IASB. Unless otherwise indicated herein, as used hereafter IFRS refers to the standards issued by the IASB. Therefore, our consolidated financial statements filed with the SBIF have been adjusted to IFRS in order to comply with the requirements of the Securities and Exchange Commission, or the SEC. We have included herein certain information in Chilean Bank GAAP with respect to the Chilean financial ~~system.~~system and the financial performance of the bank. These disclosures are not considered non-GAAP measures as they are required for regulatory purposes in Chile.

The selected consolidated financial information included herein as of December 31, ~~2014~~2015 and for the year ended December 31, ~~2014,~~2015, together with the selected consolidated financial information as of December 31, ~~2010,~~ 2011, 2012, 2013 and ~~2013~~2014 and for the years ended December 31, ~~2010,~~ 2011, 2012, 2013 and ~~2013,~~2014, is derived from, and presented on the same basis as, our consolidated financial statements prepared under IFRS and should be read together with such consolidated financial statements. Readers should exercise caution in determining trends based on prior annual reports. See “Item 5. Operating and Financial Review and Prospects—A. Operating Results—The Economy—Critical Accounting Policies and Estimates”.

Our auditors, Deloitte Auditores y Consultores Ltda., or Deloitte, an independent registered public accounting firm, have audited our consolidated financial statements in accordance with IFRS as of December 31, ~~2014~~2015 and ~~2013~~2014 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014.~~2015. See page ~~240~~238 and F-1 of this report for further details on Deloitte’s opinions.

In this Annual Report, references to “$,” “US$,” “U.S. dollars” and “dollars” are to United States dollars, references to “Chilean pesos” or “Ch$” are to Chilean pesos, references to “UF” are toUnidades de Fomento and references to “Colombian pesos” or “COP$” are to Colombian pesos. The UF is an inflation-indexed, Chilean peso-denominated unit that is linked to and adjusted daily to reflect changes in the previous month’s Chilean Consumer Price Index of the Chilean National Statistics Institute (Instituto Nacional de Estadísticas). As of December 31, ~~2014, one UF equaled US$40.68, Ch$24,627.10 and COP$97,263.43 and as of April 23,~~ 2015, one UF equaled US$~~40.10,~~36.08, Ch$~~24,720.24~~25,629.09 and COP$~~98,663.89.~~113,102.78 and as of March 11, 2016, one UF equaled US$37.69, Ch$25,762.22 and COP$117,101. See “Item 5. Operating and Financial Review and Prospects”.

This Annual Report contains translations of certain Chilean peso amounts into U.S. dollars and Colombian pesos at specified rates solely for the convenience of the reader. These translations should not be construed as representations that such Chilean peso amounts actually represent such U.S. dollar or Colombian pesos amounts, were converted from U.S. dollars or Colombian pesos amounts at the rate indicated in preparing our financial statements or could be converted into U.S. dollars or Colombian pesos amounts at the rate indicated or any particular rate at all. Unless otherwise indicated, such U.S. dollar and Colombian pesos amounts have been translated from Chilean pesos based on our own exchange rate of Ch$~~605.46~~710.32 and COP$~~2.391.36,~~3,135.17, respectively, per US$1.00 as of December 31, ~~2014.~~2015.

Unless otherwise specified, all references in this Annual Report to total loans are to loans and financial leases before deduction for allowances for loan losses, and they do not include loans to banks or unfunded loan commitments. In addition, all

market share data and financial indicators for the Chilean banking system when compared to CorpBanca’s financial information,

presented in this Annual Report or incorporated by reference into this Annual Report are based on information published periodically by the SBIF, which is published under Chilean Bank GAAP and prepared on a consolidated basis. Non-performing loans include the principal and accrued interest on any loan with one installment more than 90 days overdue. Impaired loans include those loans on which there is objective evidence that customers will not meet some of their contractual payment obligations. Past due loans include all installments and lines of credit more than 90 days overdue, provided that the aggregate principal amount of such loans is not included. Under IFRS, a loan is evaluated on each financial statement reporting date to determine whether objective evidence of impairment exists. A loan will be impaired if and only if, objective evidence of impairment exists as a result of one or more events that occurred after the initial recognition of the loan, and such event or events have an impact on the estimated future cash flows of such loan that can be reliably estimated. It may not be possible to identify a single event that was the individual cause of the impairment. An impairment loss relating to a loan is calculated as the difference between the carrying amount of the loan and the present value of estimated future cash flows discounted at the effective interest rate. Individually significant loans are individually tested for impairment. The remaining financial loans are evaluated collectively in groups with similar credit risk characteristics. The reversal of an impairment loss occurs only if it can be objectively related to an event occurring after the initial impairment loss was recorded. In the case of loans recorded at amortized cost, the reversal is recorded in income. See “Item 4. Information on the Company—Business Overview—Selected Statistical Information —Classification of Banks and Loans; Allowances and Provisions for Loan Losses.”

According to Decree with Force of Law No. 3 of 1997, as amended, theLey General de Bancosor the Chilean General Banking ~~Law,~~Act, a bank must have effective net equity (patrimonio efectivo) of at least 8% of its risk weighted assets, net of required allowance for loan losses, and paid in capital and reserves, ~~and~~or basic capital (capital básico), of at least 3% of its total assets, net of required allowance for loan losses.

For these purposes, the effective net equity of a bank is the sum of (1) the bank’s basic capital, (2) subordinated bonds issued by the bank valued at their issue price for an amount of up to 50% of its basic capital; provided that the value of the bonds shall decrease by 20% for each year that elapses during the period commencing six years prior to their maturity and (3) its voluntary allowances for loan losses, for an amount of up to 1.25% of its risk weighted assets to the extent voluntary allowances exceed those that banks are required to maintain by law or regulation; minus (4) certain deductions to be made in accordance with provisions of chapter 12-1 of the regulations of the ~~SBIF(~~SBIF (Recopilación Actualizada de Normas), or the Regulations of the SBIF.

Certain figures included in this Annual Report and in our audited consolidated financial statements as of and for the year ended December 31, ~~2014~~2015 have been rounded for ease of presentation. Percentage figures included in this Annual Report have in all cases not been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this Annual Report may vary slightly from those obtained by performing the same calculations using the figures in our audited consolidated financial statements as of and for the year ended December 31, ~~2014.~~2015. Certain other amounts that appear in this Annual Report may similarly not sum due to rounding.

Inflation figures relating to Chile are those reported by the Chilean National Statistics Institute (Instituto Nacional de Estadísticas) or INE, unless otherwise stated herein or required by the context. Inflation figures relating to Colombia are those reported by the Colombian National Administrative Department of Statistics (Departamento Administrativo Nacional de Estadística -) or DANE,), unless otherwise stated herein or required by the context. See “—Exchange Rate Information” below.

In this Annual Report, all ~~macro-economic~~macroeconomic data related to the Chilean economy is based on information published by the Central Bank of Chile and all ~~macro-economic~~macroeconomic data related to the Colombian economy is based on information published by the Central Bank of Colombia. All market share and other data related to the Chilean financial system is based on information published by the SBIF as well as other publicly available information and all market share and other data related to the Colombian financial system is based on information published by the Colombian Superintendency of Finance (Superintendencia Financiera de Colombia) as well as other publicly available information. The SBIF publishes the consolidated risk index (ratio of allowance for loans losses over total loans) of the Chilean financial system on a monthly basis. The Colombian Superintendency of Finance publishes every month the consolidated data required to calculate the risk index of the Colombian banking system (loan loss allowances and total loans).

Chile has two currency markets, the Formal Exchange Market (Mercado Cambiario Formal) and the Informal Exchange Market (Mercado Cambiario Informal). The Formal Exchange Market is comprised of banks and other entities authorized by the Central Bank of Chile. The Informal Exchange Market is comprised of entities that are not expressly authorized to operate in the Formal Exchange Market, such as certain foreign exchange houses and travel agencies, among others. The Central Bank of Chile is empowered

to require that certain purchases and sales of foreign currencies be carried out on the Formal Exchange Market. Both the Formal and Informal Exchange Markets are driven by free market forces. Current regulations require that the Central Bank of Chile be informed of certain transactions and that they be effected through the Formal Exchange Market.

The U.S. dollar observed exchange rate (dólar observado), or the Observed Exchange Rate, which is reported by the Central Bank of Chile and published daily in the Official Gazette (Diario Oficial) is the weighted average exchange rate of the previous business day’s transactions in the Formal Exchange Market. Nevertheless, the Central Bank of Chile may intervene by buying or selling foreign currency on the Formal Exchange Market to attempt to maintain the Observed Exchange Rate within a desired range. Even though the Central Bank of Chile is authorized to carry out its transactions at the Observed Exchange Rate, it often uses spot rates instead. Many other banks carry out foreign exchange transactions at spot rates as well.

The Informal Exchange Market reflects transactions carried out at an informal exchange rate. There are no limits imposed on the extent to which the rate of exchange in the Informal Exchange Market can fluctuate above or below the Observed Exchange Rate.

The Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos.

As of December 31, ~~2014,~~2015, the U.S. dollar exchange rate used by us was Ch$~~605,46~~710.32 per US$1.00 and the Colombian ~~pesos~~peso exchange rate used by us was Ch$~~0.2532~~3,135.17 per Cop$1.00.

The following table sets forth the annual low, high, average and period-end Observed Exchange Rate for U.S. dollars for the periods set forth below, as reported by the Central Bank of Chile.

The following table sets forth the annual low, high, average and period-end exchange rate for U.S. dollars for the periods set forth below under our policy to calculate our own exchange rate:

Investments made in our common shares and our ADRs are subject to the following requirements:

any foreign investor acquiring common shares to be deposited into an ADR facility who brought funds into Chile for that purpose must bring those funds through an entity participating in the Formal Exchange Market;

the entity participating in the Formal Exchange Market through which the funds are brought into Chile must report such investment to the Central Bank of Chile;

all remittances of funds from Chile to the foreign investor upon the sale of common shares underlying American Depositary Shares, or ADSs, or from dividends or other distributions made in connection therewith must be made through the Formal Exchange Market; and

all remittances of funds made to the foreign investor must be reported to the Central Bank of Chile.

When funds are brought into Chile for a purpose other than to acquire common shares to convert them into ADSs and subsequently are used to acquire common shares to be deposited into the ADR facility, such investment must be reported to the Central Bank of Chile by the custodian within ten days following the end of each month within which the custodian is obligated to deliver periodic reports to the Central Bank of Chile.

All payments made within Chile in foreign currency in connection with ADSs through the Formal Exchange Market must be reported to the Central Bank of Chile by the entity participating in the transaction. In the event there are payments made outside of Chile, the foreign investor must provide the relevant information to the Central Bank of Chile directly or through an entity of the Formal Exchange Market within the first ten calendar days of the month following the date on which the payment was made.

We cannot assure you that additional Chilean restrictions applicable to the holders of the ADSs, the disposition of shares underlying ADSs or the conversion or repatriation of the proceeds from such disposition will not be imposed in the future, nor can we assess the duration or impact of such restriction if imposed.

This summary does not purport to be complete and is qualified by reference to Chapter XIV of the Central Bank Foreign Exchange Regulations, a copy of which is available in the original Spanish version at the Central Bank of Chile’s website at www.bcentral.cl.

The following tables present our selected financial data as of the dates and for the periods indicated. You should read the following information together with our audited consolidated financial statements, including the notes thereto, included in this Annual Report and the information set forth in “Item 5. Operating and Financial Review and Prospects”.

   As of December 31,
   2010    2011    2012    2013 2014    2014
   Ch$    Ch$    Ch$    Ch$ Ch$    US$
   (in millions of Ch$, in thousands of US$)
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Cash and deposits in banks
   202,339       265,747       520,228       911,088    1,169,178       1,931,057
Cash in the process of collection
   79,680       96,230       123,777       112,755    212,842       351,538
Trading portfolio financial assets
   197,580       166,039       159,898       431,683    685,898       1,132,854
Investments under agreements to resell
   75,676       23,251       21,313       201,665    78,079       128,958
Derivative financial instruments
   204,067       248,982       268,027       376,280    766,799       1,266,473
Loans and receivables from banks, net
   63,998       304,098       482,371       217,944    814,209       1,344,778
Loans and receivables from customers
   5,364,980       6,711,945       9,993,890       12,771,642    13,892,270       22,944,984
Financial investments available-for-sale
   746,248       843,250       1,112,435       889,087    1,156,896       1,910,772
Held to maturity investments
   —         21,962       104,977       237,522    190,677       314,929
Investment in other companies
   3,583       3,583       5,793       13,922(* ) 15,842       26,165
Intangible assets
   13,096       12,239       489,306       841,370(* ) 757,777       1,251,572
Property, plant and equipment, net
   53,430       57,225       65,086       98,242    92,642       153,011
Current taxes
   —         6,278       —         —      1,608       2,656
Deferred income taxes
   21,956       25,080       40,584       89,218    107,043       176,796
Other assets
   104,207       102,775       149,903       293,118    415,267       685,874










TOTAL ASSETS
7,130,840    8,888,684    13,537,588    17,485,536    20,357,027    33,622,417

   As of and for the fiscal years ended December 31,
   2010 2011 2012 2013 2014
CONSOLIDATED RATIOS

Profitability and Performance

Net interest margin⁽¹⁾
   3.6 % 2.7 % 2.3 % 3.4 % 3.8 %
Return on average total assets⁽²⁾
   1.8 % 1.5 % 0.9 % 1.1 % 1.4 %
Return on average shareholders’ equity⁽³⁾
   23.9 % 19.6 % 13.1 % 12.7 % 18.2 %
Efficiency ratio (consolidated)⁽⁴⁾
   41.0 % 45.7 % 56.8 % 51.7 % 51.4 %
Dividend payout ratio⁽⁵⁾
   100.0 % 100.0 % 100.0 % 50.0 % 57 %
Capital

Average shareholders’ equity as a percentage of average total assets
   7.5 % 7.5 % 7.2 % 8.9 % 7.7 %
Shareholders’ equity as a percentage of total liabilities
   8.4 % 9.1 % 8.0 % 11.0 % 9.7 %
Asset Quality

Allowances for loan losses as a percentage of overdue loans⁽⁶⁾
   165.8 % 153.8 % 101.8 % 76.5 % 65.3 %
Overdue loans as a percentage of total loans⁽⁶⁾
   1.1 % 1.0 % 1.1 % 1.3 % 1.5 %
Allowances for loan losses as a percentage of total loans
   1.9 % 1.5 % 1.1 % 1.0 % 1.0 %
Past due loans as a percentage of total loans⁽⁷⁾
   0.9 % 0.7 % 0.5 % 0.5 % 0.6 %
OTHER DATA

Inflation rate
   —      —      —      —      —
Foreign exchange rate (Ch$/US$)
   (7.8 )% 11.0 % (7.7 )% 9.9 % 15 %
Number of employees
   3,422    3,461    5,163    7,298    7,456
Number of branches and offices
   113    116    209    295    298

The growth and composition of our loan portfolio may expose us to increased loan ~~losses~~losses.

From December 31, ~~2011~~2012 to December 31, ~~2014,~~2015, the compounded annual growth rate of our aggregate gross loan portfolio was ~~27.8%~~13.4%. Our business strategy is to grow profitably while increasing the size of our loan portfolio.

~~Our loan portfolio has one~~The consumer loans segment ~~with~~represents the single highest level of ~~risk: consumer loans.~~risk in our loan portfolio. As of December 31, ~~2014,~~2015, the risk index (ratio of allowance for loans losses over total loans) of this segment was ~~2.0%~~1.5% – reflecting a 0.5% decrease in 2015 – while other segments of our loan portfolio such as mortgage loans orand commercial loans had lower risk indexes of ~~0.3%~~0.4% and ~~1.0%~~1.3%, respectively.

During 2015, our portfolio of consumer loans was negatively impacted by the decline in consumer activity in the country. As of December 31, 2015, consumer loans represented 11.6% of our total loan portfolio compared to 12.2% as of December 31, 2014. While our loan portfolio grew by 4.3%, the composition of our loan portfolio as of December 31, 2015 reflected a greater increase in commercial loans, from Ch$10,090,574 million to Ch$10,696,518 million, this is a 6.0% increase when compared to our portfolio of consumer loans. Our mortgage loan portfolio has remained stable between Ch$2,229,558 million in 2014 and Ch$2,228,619 million in 2015, a 0.04% decrease.

Our consumer loan portfolio may experience loan losses due to the absence of collateral in respect of unsecured loans, insufficient collateral in collateralized loans, and risks relating to the circumstances of individual borrowers, including unemployment or ~~death~~incapacitation of our consumer borrowers.

Our consumer loans have increased during 2014 in terms of aggregate amount, but, as a result of an overall increase of our total loan portfolio, have remained consistent as a percentage of our total loan portfolio in the same period. As of December 31, 2014, consumer loans represented 12.2% of our total loan portfolio compared to 12.6% in 2013.

We believe our ~~allowance~~total allowances for loan losses is adequate as of the date hereof to cover all known losses in our total loan portfolio. The growth of our loan portfolio (particularly in the lower-middle to middle income consumer segments) may expose us to a higher level of loan losses and require us to establish proportionately higher levels of provisions for loan losses, which would offset the increased income that we can expect to receive as our loan portfolio grows.

Our loan portfolio may not continue to grow at the same or similar ~~rate~~rate.

Past performance of our loan portfolio may not be indicative of future performance. ~~There can be no assurance that in the future our~~Our loan portfolio ~~will~~may not continue to grow at the same or similar rates as the growth rate that we historically experienced, particularly in light of the growth in recent years attributable to ~~(i) our acquisition~~the acquisitions of ~~91.9% equity interest in~~ CorpBanca Colombia in May 2012 ~~or the Banco Santander~~(the CorpBanca Colombia ~~Acquisition,~~Aqcuisition) and ~~(ii) our acquisition of a 87.4% equity interest in~~ Helm Bank in August 2013 ~~or the~~(the Helm Bank ~~Acquisition, or, together with the Banco Santander Colombia Acquisition, the Colombia Acquisitions. A reversal of the rate of growth of~~Aqcuisition). Additionally, changes in the Chilean or Colombian economy, a slowdown in the growth of customer demand, an increase in market competition or changes in governmental regulations could also adversely affect the rate of growth of our loan portfolio and our risk index and, accordingly, increase our required allowances for loan losses. Economic turmoil could also materially and adversely affect the liquidity, businesses and financial condition of our customers, including a general decline in consumer spending and a rise in unemployment, which in turn could lead to decreased demand for borrowings in general.index.

Our allowances for loan losses may not be adequate to cover the future actual losses to our loan ~~portfolio~~portfolio.

As of December 31, ~~2014,~~2015, our allowance for loan losses was Ch$~~137,605 million~~173,939 (excluding allowances for loan losses on loans and receivable to banks), and the risk index was ~~1.0%~~1.2%. The amount of allowance for loan losses is based on our current assessment of and expectations concerning various factors affecting the quality of our loan portfolio. These factors include, among ~~other things,~~others, our customers’ financial condition, repayment abilities and repayment intentions, the realizable value of any collateral, the prospects for support from any guarantor, ~~Chile’s~~Chilean and ~~Colombia’s economy,~~Colombian economies, government macroeconomic policies, interest rates and the legal and regulatory environment. Many of these factors are beyond our control. In addition, as these factors evolve, the models we use to determine the appropriate level of allowance for loan losses require recalibration, which may lead to increased provision for loan losses. If our assessment of and expectations concerning the above mentioned factors differ from actual developments, if the quality of our loan portfolio deteriorates or if the future actual losses exceed our estimates, our allowance for loan losses may not be adequate to cover actual losses and we may need to make additional allowances for loan losses, which may materially and adversely affect our results of operations and financial condition. ~~We believe our allowance for loan losses is adequate as of the date hereof for all known losses.~~

If we are unable to maintain the quality of our loan portfolio, our financial condition and results of operations may be materially and adversely ~~affected~~affected.

As of December 31, ~~2014,~~2015, our past due loans were Ch$~~82,650 million,~~104,897, which resulted in a past due loans to total loans ratio of ~~0.6%~~0.7%. As of December 31, ~~2014,~~2015, our non-performing loans were Ch$~~180,536 million,~~196,806, which resulted in a non-performing to total loans ratio of 1.3%. We seek to continue to improve our credit risk management policies and procedures. However, we cannot assure you that our credit risk management policies, procedures and systems are free from any deficiency. Failure of credit risk management policies may result in an increase in the level of non-performing loans and adversely affect the quality of our loan portfolio. In addition, the quality of our loan portfolio may also deteriorate due to various other reasons, including factors beyond our control, such as the macroeconomic factors affecting the Chilean or Colombian economies. If such deterioration were to occur, it could materially and adversely affect our financial conditions and results of operations.

~~Our exposure~~Additionally, due to ~~individuals~~limitations in the availability of information and ~~small-to-medium-sized companies could lead to higher levels of past due loans and subsequent loan losses~~

~~The quality of our portfolio of loans to individuals and small-to-medium-sized enterprises, or SMEs, is dependent to a significant extent on prevailing economic conditions~~the developing information infrastructure in Chile and ~~Colombia. SMEs and lower-middle~~Colombia, our assessment of the credit risks associated with a particular customer may not be based on complete, accurate or reliable information. In addition, although we have been improving our credit scoring systems to ~~middle income individuals are more likely to~~better assess borrowers’ credit risk profiles, we cannot assure you that our credit scoring systems collect complete or accurate information reflecting the actual behavior of customers or that their credit risk can be ~~more severely affected by adverse developments in the Chilean and Colombian economies than large corporations and higher income individuals. As~~assessed correctly.

Furthermore, a ~~result, lending to SMEs and lower-middle to middle income individuals represents a relatively higher degree of risk than lending to other market segments.~~

A substantial number of our customers consist of individuals and small-to-medium-sized enterprises, or SMEs. Our business results relating to our lower-income individual and SME customers are, however, more likely to be adversely affected by downturns in the Chilean and Colombian economies, including increases in unemployment, than our business from large corporations and high-income individuals. For example, unemployment directly affects the capacity of individuals to obtain and repay consumer loans. Consequently, this could

materially and adversely affect the liquidity, business and financial condition of our customers, which may in turn cause us to experience higher levels of past due loans, and result in higher allowances for loan losses, which could in turn materially affect our asset quality, results of operations and financial conditions.

The value of any collateral securing our loans may not be sufficient, and we may be unable to realize the full value of the collateral securing our loan ~~portfolio~~portfolio.

From time to time, we require our borrowers to collateralize their loans with guarantees, pledges of particular assets or other security. The value of any collateral securing our loan portfolio may significantly fluctuate or decline due to factors beyond our ~~control, including~~

control. Such factors include market factors, environmental risks, natural disasters, macroeconomic factors and political events affecting the Chilean ~~and~~or Colombian economies. ~~The real estate market is particularly vulnerable to a negative economic climate and this may affect us as real estate represents a significant portion~~Any decline in the value of the collateral securing our ~~residential mortgages loan portfolio. We may also not have sufficiently recent information on the value of collateral, which~~loans may result in a reduction in the recovery from collateral realization and may have an inaccurate assessment for impairment losses of our loans secured by such collateral. If this were to occur, we may need to make additional allowance for loan losses to cover actual impairment losses of our loans, which may materially and adversely affectadverse impact on our results of operations and financial condition.

~~Additionally, there are certain provisions under Chilean law No. 19,335~~In addition, the Bank may face difficulties in perfecting its liens and enforcing its rights as a secured creditor. In particular, timing delays and procedural problems in enforcing against collateral and local protectionism in the markets in which we operate may make foreclosures on collateral and enforcement of ~~1994~~judgments difficult, and may result in losses that ~~may~~could materially and adversely affect the ~~procedures for foreclosing on or liquidating residential mortgages if the residence in question has been declared as “family property” by a court because it is inhabited by the family~~our results of ~~the mortgagor. If any party occupying the real estate files a petition with the court requesting that such real estate be declared family property, we may be delayed in foreclosing on such property.~~

There are also certain provisions of Colombian Law No. 1,676 that may affect our rights to foreclose on or liquidate movable assets pledged in favor of our Colombian subsidiaries. Colombian Law No. 1,676, issued on August 20, 2013,operations and applicable as of February 21, 2014, created a new registry for liens over movable assets. Creditors registering liens are granted priority based on the date of registration of the liens in the new registry. This “first in time, first in right” rule also applies to those liens granted before the enactment of the law. We have been registering liens granted in our favor prior to February 21, 2014, however, there is a risk that after August 20, 2014 (the date on which the six months term granted by Law 1,676 of 2013 to re-register liens in the new registry expired), third parties with conflicting liens may also seek to obtain registration over the same assets, in which case the first party to register a lien will have priority over any subsequent lien holder. In addition, given the recent enactment of this law, there is uncertainty as to how the law will be interpreted and applied, including how movable assets underlying the securities will be valued by the registry.financial condition.

Chilean banks are required by the Chilean General Banking ~~Law~~Act to maintain regulatory capital of at least 8% of risk-weighted assets, net of required allowance for loan losses and deductions, and basic capital of at least 3% of total assets, net of required allowance for loan losses. For the purposes of maintaining a high solvency classification from the SBIF and continued compliance with the SBIF’s capital requirements on us, our intention is to have the highest classification from the SBIF. As of December 31, ~~2014,~~2015, the ratio of our Bank for International Settlements, or BIS, capital-weighted assets ratio was ~~12.39%~~9.5%. Nevertheless our capital ratios levels decreased from 12.4% to 9.5% between 2014 and 2015, following the approval of the merger with Banco Itaú Chile, considering that our shareholders, together with approving the merger, approved a special dividend distribution in the amount of Ch$239.86 billion that was paid on July 1, 2015.

Additionally, Colombian financial institutions are subject to capital adequacy requirements (as set forth in Decree 1771 of 2012, as amended) that are based on applicable Basel Committee standards. The regulations establish four categories of assets, which are each assigned different risk weights, and require that a credit institution’s Technical Capital (as defined below) be at least 9% of that institution’s total risk-weighted assets, and that its ordinary basic capital be at least 4.5% of that institution’s total risk-weighted assets. Technical Capital for the purposes of the Colombian regulations consists of the sum of Tier One Capital (ordinary basic capital) and Tier Two Capital (additional basic capital plus additional capital), collectively, Technical Capital. As of December 31, 2015, the consolidated ratio for our Colombian operations (calculated as BIS capital to risk-weighted assets) was 12.9%.

Certain developments could affect our ability to continue to satisfy the current capital adequacy requirements applicable to us, including:

the increase of risk-weighted assets as a result of the expansion of our business;

the failure to increase our capital correspondingly;

losses resulting from a deterioration in our asset quality;

declines in the value of our available-for-sale investment portfolio;

goodwill and minority interest;

changes in accounting rules; and

changes in the guidelines regarding the calculation of the capital adequacy ratios of banks in ~~Chile.~~the countries we operate.

fluctuations in exchange rates that could impact our loan portfolio, valuation adjustments due to the translation effects in equity or hedging strategies.

As provided in article 68 of the Chilean General Banking ~~Law,~~Act, if we fail at any time to meet the legal requirements relating to the maintenance of regulatory capital (which is comprised of effective net worth and basic capital, as both concepts are defined in article 66 of the Chilean General Banking ~~Law~~Act and Chapter 12-1 of the Regulations of the SBIF), we would have to comply with such legal requirements within a period of sixty days. For each day we fail to comply with such legal requirements, we ~~may~~would be subject to a daily penalty equal to one thousandth of the deficit of the effective net worth or basic capital, as the case may be.

~~Our Colombian operations may be unable to meet requirements relating to capital adequacy~~

Capital adequacy requirements for Colombian financial institutions (as set forth in Decree 1771 of 2012, as amended) are based on applicable Basel Committee standards. The regulations establish four categories of assets, which are each assigned different risk weights, and require that a credit institution’s Technical Capital (as defined below) be at least 9% of that institution’s total risk-weighted assets.

Technical Capital for the purposes of the regulations consists of the sum of Tier One Capital (basic capital) and Tier Two Capital (additional capital), collectively, Technical Capital. As of December 31, 2014, the consolidated ratio for our Colombian operations (calculated as BIS capital to risk-weighted assets) was 12.96%. Certain developments could affect the ability of our Colombian operations to continue to satisfy the current capital adequacy requirements applicable to each, including:

~~the increase of risk-weighted assets as a result of the expansion of our Colombian operations business;~~

~~the failure to increase CorpBanca Colombia’s capital;~~

~~losses resulting from a deterioration in CorpBanca Colombia’s asset quality;~~

~~declines in the value of CorpBanca Colombia’s available-for-sale investment portfolio;~~

~~goodwill and minority interest;~~

~~changes in accounting rules; and~~

~~changes in the guidelines regarding the calculation of the capital adequacy ratios of banks in Colombia.~~

If our Colombian operations fail to comply with the capital adequacy requirements applicable to Colombian financial institutions, we may be subject to certain penalties and sanctions that are graduated depending on the level of compliance failure, and which may include an administrative take-over by the government with the purpose of administration or liquidation. As a result, our business, results of operations and financial condition may be materially and adversely affected.

We are directly and indirectly affected by changes in local and international market conditions. Market risk, or the ~~current disruptions and volatility~~risk of losses in positions arising from movements in market prices, is inherent in the ~~global~~products and instruments associated with our operations, including loans, deposits, securities, bonds, long-term debt, short-term borrowings, proprietary trading in assets and liabilities and derivatives. Changes in market conditions that may affect our financial ~~markets~~condition and results of operations include fluctuations in interest and currency exchange rates, securities prices, changes in the implied volatility of interest rates and foreign exchange rates, among others.

Our results of operations are affected by interest rate volatility and inflation rate volatility.

Our results of operations depend to a great extent on our net interest income. In 2013, 2014 and 2015, our ratio of net interest income to total operating income was 65.1%, 63.6%, and 63.0% respectively. Changes in market interest rates in Chile or Colombia could affect the ~~past few years,~~interest rates earned on our interest-earning assets differently from the ~~global financial system has experienced difficult credit and liquidity conditions and disruptions~~interest rates paid on our interest-bearing liabilities leading to ~~less liquidity, greater volatility and general widening of spreads. Global economic conditions deteriorated significantly~~a reduction in ~~the second half of 2008, and~~our net interest income. Interest rates are highly sensitive to many ~~countries,~~factors beyond our control, including the ~~United States, in past years have been operating in a recessionary period. Many major financial institutions, including some~~monetary policies of the ~~world’s largest global commercial banks, investment banks, mortgage lenders, mortgage guarantors and insurance companies, have also been experiencing significant difficulties.~~

InCentral Bank of Chile and Colombia, changes in regulation of the financial sector in Chile and Colombia, domestic and international economic and political conditions and other factors. Yields on the Chilean government’s 90-day benchmark rate reached a high of 5.1% and a low of 4.8% in 2013, a high of 4.5% and a low of 3.7% in 2014, and a high of 3.1% and a low of 1.5% in 2015. On the other hand, the Colombian government does not issue short-term bonds of 30, 60 or 90 days as the Chilean government does. Instead, every month a committee of the Central Bank of Colombia determines the benchmark rate in order to achieve a specific goal of inflation. Yields on the Colombian benchmark rate reached a high of 4.0% and a low of 3.25% for 2013, a high of 4.5% and a low of 3.25% for 2014, and a high of 5.8% and a low of 4.5% for 2015. As of December 31, 2013, 2014, and 2015, we had Ch$889,087 million, Ch$1,156,896 million, and Ch$1,924,788 million, respectively, in financial investments available-for-sale. In the current global economic ~~recession~~climate, there is a greater degree of uncertainty and unpredictability in ~~2008~~the policy decisions and 2009 caused an increase in unemployment, a decrease in consumer spending, a decrease in real estate prices and a general decline in economic activity. However, in recent years, these economies have been demonstrating sustained growth, despite a slowdown in 2014. The gross domestic product, or GDPthe setting of interest rates by the Central Bank of Chile ~~grew 5.6% in 2012, 4.1% in 2013~~ and ~~1.9% in 2014. The Colombian GDP grew 4% in 2012, 4.9% in 2013~~Central Bank of Colombia and, ~~4.6% in 2014.~~

Asas a result, ~~of loose monetary policy established by the major central banks around the world,~~any volatility in interest rates ~~have been stagnant at historically low levels. This~~could adversely affect us, including our future financial performance and the market value of our securities. In addition, inflation rate volatility could adversely affect our net interest ~~rate environment has led international investors~~income due to search for yield in emerging markets economies, which has boosted emerging markets asset prices. The U.S. Federal Reserve is expected to enter a monetary policy tightening cycle, which we expect will result in increased global interest rates, which could reduce international investor’s interest in emerging market assets. In the event that global risk appetite deteriorates, this deterioration could have a spillover effect on emerging markets asset prices. A material reduction in asset pricesfluctuations in the ~~markets in which we operate could increase funding costs or deposit rates,~~gap between assets and ~~could have a material adverse effect on our interest margins.~~liabilities that are indexed to the UF.

Increased competition and industry consolidation may adversely affect the results of our ~~operations~~operations.

The Chilean and Colombian markets for financial services are highly ~~competitive.~~ competitive and competition is likely to increase.

In Chile, we face competition from banking and non-banking institutions with respect to the different products we offer. In the consumer and other loans businesses, we compete with other ~~Chilean private sector domestic and foreign~~ banks, ~~Banco del Estado de Chile, a state owned bank,~~ credit unions and public social security funds (cajas de compensación) that offer consumer and other loans to a large portion of the Chilean population. The lower-middle to middle income segments of the Chilean population and the SME segments have become the target markets of several banks, and competition in these segments is likely to increase. As a result, net interest margins in these segments have declined. Although we believe that demand for financial products and services from the lower-middle to middle income consumer market segments and for small and medium-sized companies will continue to grow during the remainder of the decade, our net interest margins may not be maintained at their current levels.

~~We also face competition from non-bank and non-finance competitors with respect to~~. In some of our credit products, ~~such as credit cards, consumer loans, insurance brokerage,~~we face competition from department stores, large supermarket chains and ~~other financial intermediaries who~~

are able to provide large companies with access to the capital markets as an alternative to bank loans and sell other financial products. Non-bank competition from large department stores has become increasingly significant in the consumer lending sector as many leading department store owners and operators offer consumer credit either alone or in conjunction with various financial institutions. In addition, we face competition from non-bank finance competitors, such as leasing, factoring and automobile finance companies ~~with respect to loans~~ and ~~credit~~in the saving products and ~~from~~mortgage loans businesses we compete with mutual funds, pension funds, ~~and~~ insurance companies ~~with respect to savings products~~ and mortgage loans. Banks continue to be the main suppliers of leasing, factoring and mutual funds in Chile, and the insurance sales business has seen rapid growth. Nevertheless, non-banking competition, especially department stores, are able to engage in some types of advertising and promotion in which, by virtue of Chilean banking rules and regulations, we are prohibited from engaging.

The increase in competition within the Chilean banking industry in recent years has led to consolidation in the industry. Further consolidation in the industry, which can result in the creation of larger and stronger competitors, may adversely affect our financial condition and results of operations by decreasing the net interest margins we are able to generate. An increase in the prevalence of this method of financing could reduce our market share for corporate financing and adversely affect our results of operations.

~~Insurance companies as well as~~with residential mortgage loan managers (Administradoras de Mutuos Hipotecarios) ~~are allowed to participate and compete with banks in the residential mortgage and credit card businesses, further increasing competition in our industry.~~. Furthermore, under the Chilean General Banking ~~Law,~~Act, representative offices of non-Chilean banks are now allowed to promote the credit products and services of their headquarters, and banks, insurance companies, retailers and other financial institutions are required to inform their customers of the all-in costs of the financial services on standardized terms allowing their customers to compare the cost of the products offered by them, all of which ~~have~~has increased, and may further increase, competition in our industry and, thus, have an adverse effect on our results of operation and financial condition.

In Colombia, we operate in a highly competitive environment and increased competitive conditions are to be expected in the jurisdictions where we operate. Intensified merger activity in the financial services industry produces larger, better capitalized and more geographically diverse firms that are capable of offering a wider array of financial products and services at more competitive prices. Our ability to maintain our competitive position in Colombia depends mainly on our ability to fulfill new customers’ needs through the development of new products and services and offer adequate services and strengthen our customer bases through cross-selling. Our Colombian operations will be adversely affected if we are not able to maintain efficient service strategies, or overcome certain delays or difficulties in the transition of the integration of the operational services and activities of CorpBanca Colombia and Helm Bank. In addition, our efforts to offer new services and products may not succeed if product or market opportunities develop more slowly than expected or if the profitability of opportunities is undermined by competitive pressures.

~~The effectiveness of our credit risk management is affected by the quality and scope of information available in Chile and Colombia~~

In assessing customers’ creditworthiness, we rely largely on the credit information available from our own internal databases, the SBIF, Dicom (a privately owned company and Chilean nationwide credit data base), the Colombian Superintendency of Finance, DataCredito (a privately owned company) and CIFIN, a division of the Colombian Banking and Financial Entities Association (~~Asociación Bancaria y de Entidades Financieras de Colombia~~), and other sources. Due to limitations in the availability of information and the developing information infrastructure in Chile and Colombia, our assessment of the credit risks associated with a particular customer may not be based on complete, accurate or reliable information. In addition, although we have been improving our credit scoring systems to better assess borrowers’ credit risk profiles, we cannot assure you that our credit scoring systems collect complete or accurate information reflecting the actual behavior of customers or that their credit risk can be assessed correctly. Without complete, accurate and reliable information, we have to rely on other publicly available resources, which may not be complete or accurate. As a result, our asset quality may be materially adversely affected.

Our risk management system may not be sufficient to avoid losses that could have a material adverse effect on our business, financial condition and results of ~~operations~~operations.

In addition to granting loans, part of our financial portfolio consists of trading transactions by our treasury division. ~~Accordingly, changes in interest rates, securities prices, currency exchange rates and other indices may adversely affect our results of operations.~~ Our financial success depends on, among other factors, our ability to accurately balance the risks we take and the returns we gain from our transactions. ~~While we focus on the identification, analysis, management~~We use various processes to identify, analyze, manage and control of our ~~risks,~~risk exposure, both in favorable and adverse market conditions. However, these processes involve subjective and complex judgments and assumptions, including projections of economic conditions ~~there can be no assurance~~and assumptions on the ability of our borrowers to repay their loans. Because of the nature of these risks, we cannot guarantee that our risk management efforts will prevent us from experiencing material losses. In particular, we may experience losses that could have a material adverse effect on our business, financial condition and results of operations ~~if:~~if, among other factors:

we are not capable of identifying all of the risks that may affect our portfolio;

our risk analysis or our measures taken in response to such risks are inadequate or inaccurate;

the markets move in an unexpected and adverse way with respect to speed, direction, strength or other aspects and our ability to manage risks in such a scenario is restricted;

our clients are affected by unforeseen events resulting in their default or losses in an amount higher than those considered in our risk analyses; or

collateral pledged in our favor is insufficient to cover our clients’ obligations to us if they default.

~~Since~~Our reliance on short-term deposits as our principal ~~sources~~source of funds ~~are short-term deposits, a~~exposes us to sudden ~~shortage of funds could cause an increase~~increases in our costs of funding ~~and~~which could have a material adverse effect on our ~~revenues~~revenues.

Time deposits and other term deposits are our primary sources of funding, which represented ~~43.5%~~44.1% of our liabilities as of December 31, ~~2014.~~2015. If a substantial number of our depositors withdraw their demand deposits or do not roll over their time deposits upon maturity, our liquidity position, results of operations and financial condition may be materially and adversely affected. We cannot assure you that in the event of a sudden or unexpected shortage of funds, any money markets in which we operate will be able to maintain levels of funding without incurring higher funding costs or the liquidation of certain assets. If this were to happen, our business, results of operations and financial condition may be materially and adversely affected.

Currency fluctuations could adversely affect our financial condition and results of operations and the value of our ~~securities~~securities.

~~Government economic~~Economic policies and any future changes in the value of the Chilean peso or the Colombian peso against the U.S. dollar could affect the dollar value of our securities, since the equity value of CorpBanca is hedged against our base currency Chilean peso. The Chilean peso and the Colombian peso have been subject to significant fluctuations in their value against the U.S. Dollar in the past and could be subject to similar fluctuations in the future. As of December 31, 2011, the Chilean peso depreciated against the U.S. dollar by 11% and the Colombian peso depreciated against the U.S. dollar by 1.5%, each as compared to December 31, 2010. As of December 31, 2012, the Chilean peso appreciated against the U.S. dollar by 7.7% and the Colombian peso appreciated against the U.S. dollar by 9%, each as compared to December 31, 2011. As of December 31, 2013, the Chilean peso depreciated against the U.S. dollar by 9.9% and the Colombian peso depreciated against the U.S. dollar by 8.9%, each as compared to December 31, 2012. As of December 31, 2014, the Chilean peso depreciated against the U.S. dollar by 15.0% and the Colombian peso depreciated against the U.S. dollar by 24.3%, each as compared to December 31, 2013. As of December 31, 2015, the Chilean peso depreciated against the U.S. dollar by 17.3% and the Colombian peso depreciated against the U.S. dollar by 31.1%, each as compared to December 31, 2014.

Our results of operations may be affected by fluctuations in exchange rates between and among the Chilean peso, the Colombian peso and the U.S. dollar despite our internal policy and Chilean and Colombian regulations relating to the general avoidance of material exchange rate gaps. As of December 31, ~~2010,~~ 2011, 2012, 2013, 2014 and ~~2014,~~2015, the gap between foreign currency denominated assets and foreign currency denominated liabilities, excluding derivatives, was Ch$~~(444,175)~~(23,560), ~~Ch$(23,560) million,~~ Ch$241,832 million, Ch$434,942 million, Ch$(26,191) million and Ch$~~(26,191)~~(497,644) million, respectively.

We may decide to change our policy regarding exchange rate gaps. Regulations that limit such gaps may also be amended or eliminated. Greater exchange rate gaps could increase our exposure to the devaluation of the Chilean peso ~~and~~and/or the Colombian peso, and any such devaluation may impair our capacity to service our foreign-currency obligations and may, therefore, materially and adversely affect our financial condition and results of operations. Notwithstanding the existence of general policies and regulations that limit material exchange rate gaps, the economic policies of the Chilean or the Colombian governments and any future fluctuations of the Chilean peso or the Colombian peso against the dollar could materially and adversely affect our financial condition and results of operations.

Trading transactions in Chile of the common shares underlying our ADSs are denominated in Chilean pesos. Cash distributions with respect to our common shares are received in Chilean pesos by the depositary, which then converts such amounts to U.S. dollars at the then-prevailing exchange rate for the purpose of making payments in respect of our ADSs. If the value of the Chilean peso falls relative to the U.S. dollar, the U.S. dollar value of our ADSs and any distributions to be received from the depositary will be reduced. In addition, the depositary will incur customary currency conversion costs (to be borne by the holders of our ADSs) in connection with the conversion and subsequent distribution of dividends or other payments.

Our business is highly dependent on proper functioning and improvement of information technology ~~systems~~systems.

Our business is highly dependent on the ability of our information technology systems to accurately process a large number of transactions across numerous and diverse markets and products in a timely manner. The proper functioning of our financial control, risk management, accounting, customer service and other data processing systems is critical to our business and our ability to compete effectively. We have backup data for our key data processing systems that could be used in the event of a catastrophe or a failure of our primary systems, and have established alternative communication networks where available. However, we cannot assure you that

our business activities would not be materially disrupted if there were a partial or complete failure of any of these primary information technology systems or communication networks. Such failures could be caused by, among other things, software bugs, computer virus attacks, cyber attacks or conversion errors due to system upgrading. In addition, any security breach caused by unauthorized access to information or systems, intentional malfunctions or loss or corruption of data, software, hardware or other computer equipment, could have a material adverse effect on our business, results of operations and financial condition.

Our ability to remain competitive and achieve further growth will depend in part on our ability to upgrade our information technology systems and increase our capacity on a timely and cost effective basis. Any substantial failure to improve or upgrade information technology systems effectively or on a timely basis could materially and adversely affect our business, financial condition and results of operations.

Our business in Colombia is dependent on a technology service agreement with Banco Santander, S.A.

We entered into a technology service agreement with Banco Santander, S.A. in connection with the Banco Santander Colombia Acquisition. The original term of the technology service agreement was to expire in June 2015; however, we exercised an option to extend the term of such agreement for an additional year term through June 2016. In connection with our exercise of the option to extend this agreement, we secured the right to an additional extension, and as such have the right to extend the term of this technology service agreement through June 2017. Our business in Colombia is dependent on the service and support of a subsidiary of Banco Santander S.A., provided to us pursuant to ~~the~~a technology service agreement. This technology service agreement was extended and expires at the end of December

2016 unless we exercise our option to extend its term through June 2017. If Banco Santander, S.A. is unable to service and support our business in Colombia or if we are unable to integrate our information technology systems into our business in Colombia after the expiration of the technology service agreement, then such failure could materially and adversely affect our business, financial condition and results of operations.

~~Our inability to attract, develop or retain qualified employees, managers and executives could have a material adverse effect on our business, financial condition and results of operations~~

Our ability to maintain our competitive position and implement our growth strategy is dependent on our ability to attract, develop and retain qualified employees, managers and executives. Following the pending Itaú-CorpBanca Merger (as defined below), Itaú Unibanco and Inversiones Corpgroup Interhold Limitada (our holding company), together with certain affiliates of the latter, or, collectively, CorpGroup, are expected to sign a shareholders agreement to define the agreement of these parties with respect to certain matters related to corporate governance, dividend policy, transfer of shares and liquidity among others, or the Itaú-CorpBanca Shareholders Agreement. The Itaú-CorpBanca Shareholders Agreement provides that Itaú Unibanco and CorpGroup will collectively be entitled to appoint the majority of the members of our board of directors. Additionally, Itaú Unibanco will be able to appoint the chief executive officer, or CEO. Our success is also dependent on our ability to attract, train, develop and retain talented, diverse employees. We cannot assure you that we will be successful in attracting and retaining qualified personnel either before or after the Itaú-CorpBanca Merger. The loss of certain members of our senior management or our inability to retain and attract additional personnel could have a material adverse effect on our business, financial condition and results of operations.

A worsening of labor relations in Chile or Colombia could impact our ~~business~~business.

As of December 31, ~~2014,~~2015, on a consolidated basis we had ~~3,740~~3,838 employees in Chile (including 2627 at our New York Branch), of which ~~56%~~54.2% were unionized and ~~3,716~~3,707 employees in Colombia, of which ~~17.7%~~20.2% were unionized. ~~On August 1, 2014 we entered into a new~~We are parties to collective bargaining ~~agreement which provides for improved benefits for the~~agreements with unions representing our employees in Chile and ~~will be in force for a four year period.~~Colombia. CorpBanca Colombia’s current labor agreement with ~~its 15~~eigthteen unions in Colombia was subscribed on ~~September 14, 2013~~August 26, 2015 and expires on August 31, ~~2015.~~2017. We generally apply the relevant terms of our collective bargaining agreement to unionized and non-unionized ~~employees.~~employees in each of the markets in which we operate. We have traditionally enjoyed good relations with our employees and their ~~unions, but we cannot assure you that in the future~~unions. However, a strengthening of cross-industry labor movements ~~will not~~may result in increased employee or labor costs that could materially and adversely affect our business, financial condition or results of operations.

On December 29, 2014, the Chilean government proposed a labor reform bill to the Chilean Congress, or the Labor Reform, which intends to substantially modify rules applicable to collective bargaining, including our unionized Chilean employees. The principal proposals included in this bill are to (1) prohibit employers, including us, from hiring replacement employees in the event of a worker strike affecting the business, and (2) ensure a minimum level of benefits. Additionally, the bill prohibits the workers from negotiating and entering into collective bargaining agreements directly with employers outside of established unions. Instead, workers will be required to organize collective bargaining efforts through established union. The bill is expected to be enacted as law during the ~~second~~first half of ~~2015,~~2016, in which case it will become ~~effectively~~effective a year after its publication in the Official Gazette. If this bill becomes law, the effects of any strike or collective bargaining efforts by our employees in Chile could have a negative impact on our business, financial condition or results of operations.

Third party vendors provide key components of our business infrastructure such as different loan servicing systems, internet connections and network access. Any problems caused by these third parties, including as a result of their not providing us their services for any reason or their performing their services poorly, could adversely affect our ability to deliver products and services to customers and otherwise to conduct business. Replacing these third party vendors could also entail significant delays and expense and could negatively impact our business.

We are exposed to many types of operational risks, including the risk of fraud by employees and outsiders, failure to obtain proper authorizations, failure to properly document transactions, equipment failures and errors by employees. Although we maintain a system of operational controls, there can be no assurances that operational problems or errors will not occur and that their occurrence will not have a material adverse effect on our business, financial condition and results of operations.

Our anti-money laundering and anti-terrorist financing measures may not prevent third parties from using us as a conduit for those activities, which could have a material adverse effect on our business, financial condition and results of ~~operations~~operations.

We ~~believe that we~~ are ~~in compliance~~required to comply with applicable anti-money laundering and anti-terrorist financing laws and regulations and we have adopted various policies and procedures, including internal controls and “know-your customer” procedures, aimed at preventing money laundering and terrorist financing. In addition, because we also rely on our correspondent banks having their own appropriate anti-money laundering and anti-terrorist financing procedures, we use what we believe are commercially reasonable procedures for monitoring our correspondent banks. However, these measures, procedures and compliance may not be entirely effective in preventing third parties from using us (and our correspondent banks) as a conduit for money laundering (including illegal cash operations) or terrorist financing without our (and our correspondent banks’) knowledge or consent. If we were to be associated with money laundering (including illegal cash operations) or terrorist financing, our reputation could be harmed and we could become subject to fines, sanctions or legal enforcement (including being added to any “blacklists” that would prohibit certain parties from engaging in transactions with us), which could have a material adverse effect on our business, financial condition and results of operation.

Banking regulations ~~in Chile~~ may restrict our operations and thereby adversely affect our financial condition and results of ~~operations~~operations.

We are subject to regulation in the markets in which we operate, including by the ~~SBIF. In addition, we are subject to regulation~~SBIF and by the Central Bank of Chile ~~with regard to certain matters, including reserve requirements, interest rates, foreign exchange mismatches~~in Chile and ~~market risks. During the Chilean financial crisis of 1982 and 1983,~~by the Central Bank of ~~Chile~~Colombia, the Colombian Ministry of Finance, the Colombian Superintendency of Finance, the Superintendency of Industry and Commerce (Superintendencia de Industria y Comercio), or SIC, and the ~~SBIF strictly controlled~~Self-Regulatory Organization (Autorregulador del Mercado de Valores-AMV), or the ~~funding, lending and general business matters of the banking industry~~SRO in ~~Chile.~~Colombia.

Pursuant to the Chilean General Banking ~~Law, all Chilean banks~~Act in Chile and the Financial System Organic Act (Estatuto Orgánico del Sistema Financiero) in Colombia, we may, subject to the ~~approval of~~necessary regulatory approvals, engage in the ~~SBIF, engage~~commercial banking business and in certain businesses in addition to traditional commercial ~~banking depending on the risk associated with such business and their financial strength.~~banking. Such additional businesses may include securities brokerage, mutual fund management, securitization, insurance brokerage, leasing, factoring, financial advisory, custody and transportation of securities, loan collection and financial services. ~~There can be no assurance that regulators will not~~Regulators may in the future impose more restrictive limitations on the activities of banks, including us. ~~The Chilean General Banking Law also applies to the Chilean financial system, which is a modified version of the~~

New capital adequacy ~~guidelines issued by the Basel Committee on Banking Regulation and Supervisory Practices and limits the discretion of the SBIF to deny new banking licenses.~~

~~If enacted, new regulations~~requirements could require us to inject further capital into our business as well as in businesses we acquire, or to capitalize dividends, restrict the type or volume of transactions we enter into, or set limits on or require the change of rates or fees that we charge on certain loans or other products, any of which could lower the return on our investments, assets and equity. We may also face increased compliance costs and limitations on our ability to pursue certain business opportunities.

Historically, Chilean banks have not paid interest on amounts deposited in checking accounts. However, since June 1, 2002, the Central Bank of Chile has allowed banks to pay interest on checking accounts. We have begun to pay interest on some checking accounts under certain conditions. If competition or other factors lead us to pay higher interest rates on checking accounts, to relax the conditions under which we pay interest or to increase the number of checking accounts on which we pay interest, such a change could have a material adverse effect on our business, financial condition and results of operations.

CorpBanca must maintain a capital adequacy index of at least ~~10%~~8% calculated pursuant to the guidelines issued by the ~~Superintendency of Banks and Financial Institutions. This index must be complied with both on the closing date of an acquisition, as well as for at least a year thereafter.~~SBIF. In line with the future adoption of Basel III regulations in Chile, the SBIF has maintained a proposal to increase the minimum effective BIS capital adequacy ratio from the current 8% to 10.5%. This change requires an amendment to the Chilean General Banking ~~Law~~Act by Congress, and when adopted, could require us to inject additional capital in our business in the future. The SBIF has not issued any timetable for adoption of Basel III but has issued guidance to Chilean banks regarding the adoption of Basel III for 2019. Although we have not failed in the past to comply with our capital maintenance obligations, there can be no assurance that we will not do so in the future.

As a result of the 2008 global financial crisis, there has been an increase in government regulation of the financial services industry in many countries. Such regulation may also be increased in Chile and/or in Colombia, including the imposition of higher capital requirements, heightened disclosure standards and restrictions on certain types of transaction structures. In addition, numerous novel regulatory proposals have been discussed or proposed. If enacted, new regulations could require us to inject further capital into our business, restrict the type or volume of transactions we enter into, or set limits on or require the modification of rates or fees that we charge on certain loans or other products, any of which could lower the return on our investments, assets and equity. We may also face increased compliance costs and limitations on our ability to pursue certain business opportunities.

~~Banking~~The banking regulatory and capital markets environment in which operate is continually evolving and may change.

Changes in banking regulations ~~in Colombia~~ may ~~restrict our Colombian operations~~materially and adversely affect our business, financial condition and results of ~~operations~~operations. Chilean laws, regulations, policies and interpretations of laws relating to the financial system are continually evolving and changing.

~~Our~~In Chile, new regulations have been enacted in the past years which have, among others things,(a) increased the limit on the amount that a bank is allowed to grant as an unsecured loan to a single individual or entity (currently set at 10% of its regulatory capital and up to 30% of its regulatory capital if any loans granted in excess of the 10% are secured by certain collateral, for persons non related to the bank and at 5% or 25% if loans in excess of 5% are secured by certain collateral, for certain groups of persons related to the bank),(b) allowed marketing and promotion activities of credit products and services by non-Chilean banks with representative offices in Chile,(c)strengthened consumers’ rights in connection with financial products and services; and(d)lowered the maximum legal interest rate that can be imposed in general loans valued at over UF 200. These amendments have affected the Chilean banking industry in several ways including by increasing competition, increasing the risks associated with the growth of loan portfolios, providing additional scrutiny regarding prices and contracts for financial products and have caused a loss of flexibility in the determination of price and product distribution strategies in the retail banking segment.

Colombia has also experienced recent changes in applicable laws, regulations and policies, such as those regulating collateral and foreclosure, financial inclusion and consumer protection. In 2013, a new regulation regarding liens over movable assets was enacted which may affect our rights to foreclose on or liquidate movable assets pledged in favor of our Colombian ~~operations~~subsidiaries. This new law created a new registry for liens over movable assets, pursuant to which, secured creditors –including us- had to register liens granted on their favor before the enactment of the law. There is a risk that third parties with conflicting liens may also try to obtain registration over the same assets, in which case the first party to register a lien will have priority over any others. In order to promote financial inclusion, the Colombian Congress passed Law No. 1,735 of 2014 which created a new type of financial entity called Specialized Electronic Deposit and Payment Institutions (Sociedades Especializadas en Depósitos y Pagos Electrónicos) as a new deposit-taking entity form that can be incorporated by a natural person, postal service offices and/or mobile network operator or another non-bank company. The Specialized Electronic Deposit and Payment Institutions are regulated financial services providers subject to financial regulation byand supervision. The only activities these entities are authorized to perform are remote cash-in and cash-out deposit operations, the ~~Central Bank~~allocation of ~~Colombia, the Colombian Ministry of Finance, or Colombian Ministry of Finance, the Colombian Superintendency of Finance, the Superintendency of Industry and Commerce (~~~~Superintendencia de Industria y Comercio~~~~), or SIC,~~customers’ funds in electronic deposit accounts and the ~~Self-Regulatory Organization (~~~~Autorregulador del Mercado de Valores-AMV~~),offering of transactional services such

as remittances, transfers, and payments. This change increases the potential source of competition in Colombia and may impart our ability to acquire new customers or ~~the SRO.~~

Colombian regulation has evolved from an absolute separation of financial activities between different and separate entities (adopted back in the 1980’s) to an intermediate scheme of multibanking approach, This new scheme was introduced byretain existing customers. Additionally, Law No. 1,328 of 2009, ~~known as~~amended in 2014, created a customer protection regime with respect to financial institutions. This regime strengthened the ~~Financial Reform. Pursuant~~rights of consumers of financial services and products and set forth specific obligations for financial institutions. Any violation of this law or regulations issued pursuant to ~~Article 7~~this law by CorpBanca Colombia could result in monetary or administrative sanctions or restrictions on its operations.

Any of the ~~Financial Organic Statute (~~~~Estatuto Orgánico del Sistema Financiero as amended by the above-mentioned law~~~~), Colombian banks may engage in the commercial banking business~~regulatory changes mentioned above or their applicability or interpretation, and ~~in certain businesses in addition to traditional commercial banking, including leasing activities.~~

~~There can be no assurance that regulators will not in the~~ future ~~impose more restrictive limitations~~regulatory activity could have an adverse effect on ~~the activities of banks, including~~ our operations ~~in Colombia.~~

~~Capital adequacy requirements for Colombian~~and financial institutions could require us to inject further capital into our Colombian operations, or to capitalize dividends, or restrict the type or volume of transactions we enter into, which may lower the return of our investments, assets and equity. We may also face increased compliance costs and limitations on our ability to pursue certain business opportunities.

Although the Colombian government has since 2009 enacted laws purporting to provide for convergence of Colombian accounting principles with IFRS, current regulations continue to differ in certain respects from IFRS. As of January 1, 2015, financial institutions and other supervised entities were required to switch to these Colombian adapted IFRS standard, or Colombian IFRS. Therefore, in 2014 we prepared financial statements based on both current Colombian GAAP and on Colombian IFRS for comparative purposes in the future. Such switch to Colombian IFRS may adversely impact our capacity to distribute dividends and the profits of our Colombian operations.

As a result of the 2008 global financial crisis and worldwide trends, there has been an increase in government regulation of the financial services industry in many countries. Such regulation may also be increased in Colombia, including the imposition of higher capital requirements, heightened disclosure standards and restrictions on certain types of transaction structures. In addition, numerous novel regulatory proposals have been discussed or proposed. If enacted, new regulations could require us to inject further capital into our business in Colombia, restrict the type or volume of transactions we enter into, or set limits on or require the modification of rates or fees that we charge on certain loans or other products, any of which could lower the return on our investments, assets and equity. We may also face increased compliance costs and limitations on our ability to pursue certain business opportunities.condition.

We are subject to regulatory inspections, examinations and ~~examinations~~to the imposition of fines by regulatory authorities in Chile and in Colombia.

We are also subject to various inspections, examinations, inquiries, audits and other regulatory requirements by Chilean and Colombian regulatory authorities.

We cannot assure you that we will be able to meet all of the applicable regulatory requirements and guidelines, or that we will not be subject to other sanctions, fines, restrictions on our business or other penalties in the future as a result of noncompliance. If other sanctions, fines, restrictions on our business or other penalties are imposed on us for failure to comply with applicable requirements, guidelines or regulations, our business, financial condition, results of operations and our reputation and ability to engage in business may be materially and adversely affected.

Pursuant to letter No. 16191, the SBIF fined the bank for an alleged infringement to the individual lending limits provided by article 84 No. 1, in relation to article 85 of the Chilean General Banking Act. The total amount was Ch$21,765 million. In an extraordinary meeting on January 4, 2016, the bank’s board of directors agreed: to communicate the letter as a material event, expressing disagreement with the alleged infringement and to instruct management to exercise each and every legal action in order to obtain the annulment of the fine.

On January 8, 2016, the bank paid the full amount of the fine as a mandatory condition precedent to exercise its appeal rights. However, no provision was made as of December 31, 2015 as management believes that it is probable that the fine will be annulled through the appeal process.

On January 18, 2016, CorpBanca brought an action before the Santiago Court of Appeals seeking the annulment of the fine. As of today, the court has not issued its ruling. We cannot assure you that a decision will be made in our favor. A final, non-appealable decision that is adverse to our claims may have a material adverse effect on our business, financial condition and results of operations.

Failure to protect personal information could materially and adversely affect our business, financial condition and results of ~~operations~~operations.

We manage and hold confidential personal information of customers in the conduct of our banking operations, and offer various internet-based services to our clients, including online banking services. We could be liable for breaches of security in our online banking services, including cybersecurity breaches. The secure transmission of confidential information over the Internet is essential to maintain our clients’ confidence in our online services. In certain cases, we are responsible for protecting customers’ proprietary information as well as their accounts with us. We have security measures and processes in place to defend against these cybersecurity risks but these cyber attacks are rapidly evolving (including computer viruses, malicious code, phishing or other

information security breaches), and we may not be able to anticipate or prevent all such attacks, which could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our customers’ confidential, proprietary and other information. Individuals may also seek to intentionally disrupt our online banking services or compromise the confidentiality of customer information with criminal intent. Although we have procedures and controls to safeguard personal information in our possession, as well as systems and processes that are designed to recognize and assist in preventing security breaches, failure to protect against or mitigate breaches of security or other unauthorized disclosures could constitute a breach of privacy or other laws, subject us to legal actions and administrative sanctions as well as damages, adversely affect our ability to offer and grow our online services, result in the loss of customer relationships, negatively impact our reputation, and have an adverse effect on our business, results of operations and financial condition.

Our loan and investment portfolios are subject to risk of prepayment, which may result in reinvestment of assets on less profitable ~~terms~~terms.

Our loan and investment portfolios are subject to prepayment risk, which results from the ability of a borrower or issuer to pay a debt obligation prior to maturity. Generally, in a declining interest rate environment, prepayment activity increases, which reduces the weighted average lives of our earning assets and adversely affects our operating results. Prepayment risk also has an adverse impact on our residential mortgage portfolio, since prepayments could shorten the weighted average life of this portfolio,

which may result in a mismatch in funding or in reinvestment at lower yields. Prepayment risk is inherent to our commercial activity and an increase in prepayments could have a material adverse effect on our business, financial condition and results of operations.

Exposure to government debt could have an adverse effect on our business, financial condition and results of ~~operations~~operations.

We invest in debt securities issued by the Chilean and Colombian governments, the Central Bank of Chile and the Chilean Ministry of Finance that, for the most part, are short-term and highly liquid instruments. As of December 31, ~~2014, 2.7%~~2015, 3.8% of our total assets comprised of securities issued by the Chilean government and ~~4.8%~~3.9% of our total assets comprised securities issued by foreign governments, mostly by the Colombian government. If the Chilean or Colombian governments default on the timely payment of such securities, our business, financial condition and results of operations may be adversely affected.

A ~~further~~ downgrade of CorpBanca’s counterparty credit rating by international or domestic credit rating agencies could materially and adversely affect our debt credit rating for domestic and international debt, our business, our future financial performance, stockholders’ equity and the value of our ~~securities~~securities.

On August 23, 2013, following the Helm Bank Acquisition, Standard and Poor’s Ratings Services, or Standard and Poor’s, downgraded CorpBanca’s long-term issuer credit rating from BBB+ to BBB. On December 6, 2013, Moody’s Investors Service, or Moody’s, downgraded CorpBanca’s global, local and foreign currency deposit and debt ratings to Baa3 from Baa2, following placement by Moody’s on review for downgrade on August 30, 2013 in connection with our association with our affiliate, SMU S.A., or SMU. Following the announcement of the Itaú-CorpBanca Merger, Standard & Poor´s placed CorpBanca BBB/A-2 ratings on CreditWatch Developing and Moody’s changed our rating review direction to ‘possible upgrade’, from ‘review for downgrade’, on our long and short term ratings, on January 14 and January 31, 2014, respectively. On August ~~29, 2014~~20, 2015 and on ~~March 31,~~June 15, 2015, Standard and Poor’s and Moody’s, respectively, confirmed the aforementioned ratings.

Any adverse revision to CorpBanca’s credit ratings in Chile or Colombia for domestic and international debt by international and domestic rating agencies may adversely affect our debt ratings, and, as a result, our cost of funding, including interest rates paid on our deposits and securities. If this were to happen, it could have a material adverse effect on our business, future financial performance, stockholders’ equity and the value of our securities.

Mismatches in the maturity of our loan portfolio and our funding sources as well as exchange rate fluctuations related to our funding sources could materially and adversely affect our business, financial condition and results of operations and our capacity to expand our loan ~~business~~business.

We are exposed to maturity mismatches between our loans and sources of funding. The majority of our loan portfolio consists of fixed interest rate loans, and the yield from our loans depends on our ability to balance our cost of funding with the interest rates we charge to our borrowers. An increase in market interest rates in Chile or Colombia could increase our cost of funding, especially the cost of time deposits, and could reduce the spread we earn on our loans, materially and adversely affecting our business, financial condition and results of operations.

Any mismatch between the maturity of our loan portfolio and our sources of funding would magnify the effect of any imbalance in interest rates, also representing a liquidity risk if we fail to obtain funding on an ongoing basis. In addition, since part of our funding comes from securities denominated in U.S. dollars or other foreign currencies that we issue abroad, any devaluation of the Chilean or Colombian peso against the U.S. dollar or such other foreign currencies could increase the cost of funding in relation to these securities. An increase in our total cost of funds for any of these reasons could result in an increase in the interest rates on our loans, which could, as a result, affect our business, financial condition and results of operations and our ability to attract new customers and expand our loan business.

We are subject to financial and operational risks associated with derivative ~~transactions~~transactions.

We enter into derivative transactions primarily to deliver services to our clients, for hedging purposes and, on a limited basis, for trading purposes. These transactions are subject to market, liquidity, counterparty (the risk of insolvency or other inability of a counterparty to perform its obligations to us) and operational risks.

Market practices and documentation for derivative transactions in Chile and Colombia may differ from those in other countries. For example, documentation may not incorporate terms and conditions of derivatives transactions as commonly understood in other countries. In addition, the execution and performance of these transactions depends on our ability to develop adequate control and administration systems and to hire and retain qualified personnel. Moreover, our ability to monitor and analyze these transactions depends on our information technology systems. These factors may further increase risks associated with derivative transactions and, if they are not adequately controlled, could materially and adversely affect our results of operations and financial condition.

Our level of insurance might not be sufficient to fully cover all liabilities that may arise in the course of our business and insurance coverage might not be available in the ~~future~~future.

We maintain insurance for losses resulting from fire, explosions, floods and electrical shorts and outages at our various buildings and facilities. We also have civil liability insurance covering material and physical losses and damages that may be suffered by third parties. We cannot assure you that our level of insurance is sufficient to fully cover all liabilities that may arise in the course of our business or that insurance will continue to be available in the future. In addition, we may not be able to obtain insurance on comparable terms in the future. Our business and results of operations may be adversely affected if we incur liabilities that are not fully covered by our insurance policies.

The occurrence of natural disasters in the regions where we operate could impair our ability to conduct business effectively and could adversely affect our results of ~~operations~~operations.

We are exposed to the risk of natural disasters such as earthquakes or tsunamis as well as floods, mudslides and volcanic eruptions in the regions where we operate. In the event of a natural disaster, unanticipated problems with our disaster recovery systems could have a material adverse impact on our ability to conduct business in the affected region, particularly if those problems affect our computer-based data processing, transmission, storage and retrieval systems and destroy valuable data. In addition, if a significant number of our local employees and managers were unavailable in the event of a disaster, our ability to effectively conduct business could be severely compromised. A natural disaster, such as the earthquake and tsunami that affected Chile in 2010, could damage some of our branches and automated teller machines, or ATMs, forcing us to close damaged facilities or locations, increased recovery costs as well as cause economic harm to our clients. A natural disaster or multiple catastrophic events could have a material adverse effect on local businesses in the affected region and could result in substantial volatility or adverse harm in our business, financial condition and results of operations for any fiscal quarter or year.

~~Future economic conditions may make it more difficult for us to continue funding our business on favorable terms~~

Historically, one of our principal sources of funds has been time deposits. Time deposits and other term deposits represented 56.1%, 59%, 61.4%, 46.6% and 43.5% of our total liabilities as of December 31, 2010, 2011, 2012, 2013 and 2014, respectively. Large-denominations in time deposits from institutional investors may, under some circumstances, be a less stable source of funding than savings and bonds, such as during periods of significant changes in market interest rates for these types of deposit products and any resulting increased competition for such funds.

Deceleration of economic growth in Asia, Europe the United States and other developed nations may have an adverse effect on the Chilean economy, on our business, financial condition and results of operations and the market value of our securities

We are directly exposed to risks related to the weakness and volatility of the economic and political situation in Asia, the United States and other developed nations, including the downgrade of the U.S. credit rating and the economic crisis in Europe. If these nations’ economic environments deteriorate, the economies in Chile and Colombia could also be affected and could experience slower growth than in recent years thereby adversely affecting our business, financial condition and results of operations as well as the market value of our securities.

~~The banking regulatory and capital markets environment in Chile and Colombia is continually evolving and may change~~

Changes in banking regulations may materially and adversely affect our business, financial condition and results of operations. Chilean laws, regulations, policies and interpretations of laws relating to the financial system are continually evolving and changing. In 2007, new regulations governing the Chilean capital markets, called~~Reforma al Mercado de Capitales II~~, or MK2, were approved. These regulations, among other things, modified certain provisions set forth in Chilean General Banking Law. Under new legislation, the limit on the amount that a bank is allowed to grant as an unsecured loan to a single individual or entity was increased to 10% of its regulatory capital (and up to 30% of its regulatory capital if any loans granted in excess of the 10% are secured by certain collateral). Previously, these limits were set at 5% and 2.5%, respectively. This limit is set at 5% for certain persons related to the bank (or 25% if loans in excess of 5% are secured by certain collateral). Although any such increase may increase our lending activity, it may also increase the risks associated with the growth of our loan portfolio and increase competition as the number of banks that can compete in the corporate banking sector increases.

~~In June 2010, additional regulations governing the Chilean capital markets, called~~~~Reforma al Mercado de Capitales III~~, or MK3, were approved. MK3, among other things, allows non-Chilean banks with representative offices in Chile to directly promote the credit products and services of their parent companies. Previously, these representative offices could only act as intermediaries between their parent companies and local companies. This change has increased competition by increasing the number of banks that can compete directly in Chile.

~~In December 2011, the Chilean Consumer Protection Act (~~~~Ley de Derechos de los Consumidores~~) was amended to include provisions applicable to financial products and services. Pursuant to this amendment, any agreement for financial products or services between a bank and a customer must expressly provide for certain customer rights and protections, including but not limited to (i) a detailed breakdown of all direct and indirect charges, fees, costs and tariffs that form part of the price of the relevant product or service, including any such charges, fees, costs and tariffs that are part of other products or services simultaneously contracted; (ii) the events of default that may trigger a bank’s right of early termination, a reasonable cure period and the manner by which consumers are to be informed of any such early termination; and (iii) a customer’s right of early termination in its sole and absolute discretion (subject to such customer’s payment in full all of its obligations under the agreement, including any costs arising from such early termination). In addition, the amendment sets forth certain additional customer rights and protections, including, but not limited to, the right to (1) receive information about the total cost of any financial product or service, (2) be informed of the bank’s reasons for rejecting a customer application for a financial product or service and (3) be informed of any non-discretionary conditions to which a customer’s access to a particular financial product or services are subject. This amendment, also established a new dispute resolution mechanism, which provides for both mediation and arbitration. In addition, in March 2012, a bill aimed at giving additional enforcement powers to the SERNAC (Chile’s Consumer Protection Agency) regarding financial services became effective giving SERNAC further powers to supervise and regulate bank products and services. This amendment has also resulted in additional scrutiny regarding prices and contracts for financial products and services, making it more difficult to raise prices and increasing competition among bank and non-bank competitors. The Consumer Protection Act has had an adverse effect on the Chilean finance industry, particularly the banking industry as a consequence of the loss of flexibility in the determination of price and product distribution strategies in the retail banking segment.

~~In February 2012, Law No. 20,575 (~~~~Ley DICOM~~~~) was enacted in Chile to restrict the use of private and personal economic, financial, banking and commercial information of customers supplementing Law No. 19,628 on Protection of Privacy.~~

In December 2013, Law No. 20,715, the Loan Debtors Protection Act, or the Loan Debtors Protection Act, was enacted in Chile. This new law, among other things, lowered the maximum legal interest rate that can be imposed in general loans valued at over UF 200, and established different loans segments, depending on the amount of the loan, its maturity, currency denomination and inflation adjustability. Each loan segment has a different maximum legal interest rate. The Loan Debtors Protection Act also limited the amounts creditors may charge for collections costs.

Colombian laws, regulations, policies and interpretations of laws relating to the financial system are also continually evolving and changing. In 2013, a new regulation regarding liens over movable assets was enacted (Colombian Law No. 1,676) in Colombia which may affect our rights to foreclose on or liquidate movable assets pledged in favor of our Colombian subsidiaries. This new law created a new registry for liens over movable assets. Creditors registering liens are granted priority based on the date of registration of the liens in the new registry. This “first in time, first in right” rule also applies to those liens granted before the enactment of the law. We are currently registering liens granted in our favor prior to the enactment of this law, however, there is a risk that third parties with conflicting liens may also try to obtain registration over the same assets, in which case the first party to register a lien will have priority over any others. In addition, given the recent enactment of this law, there is uncertainty as to how the law will be interpreted and applied, including how movable assets underlying the securities will be valued by the registry.

In October 2014, the Colombian Congress passed Law No. 1,735 of 2014 to promote financial inclusion and increase penetration of the banking sector. The Law created a new type of financial entity called the Specialized Electronic Deposit and Payment Institutions (~~Sociedades Especializadas en Depósitos y Pagos Electrónicos~~~~) as a new deposit-taking entity form that can be incorporated by a natural person, postal service offices and/or mobile network operator or another non-bank company. The~~

Specialized Electronic Deposit and Payment Institutions are regulated financial services providers subject to financial regulation and supervision. The only activities these entities are authorized to perform are remote cash-in and cash-out deposit operations, the allocation of customers’ funds in electronic deposit accounts and the offering of transactional services such as remittances, transfers, and payments. This change increases the potential source of competition in Colombia and may impart our ability to acquire new customers or retain existing customers.

~~Any of the regulatory changes listed above could have an adverse effect on our operations in Chile or Colombia respectively.~~

Chile has different corporate disclosure and accounting standards than those you may be familiar with in the United ~~States~~States.

As a regulated financial institution, we are required to submit to the SBIF unaudited consolidated and unconsolidated balance sheets and income statements ~~excluding any related footnote disclosure,~~ on a monthly basis. As of January 2008, the statements have to be prepared in accordance with ~~Circular No. 3,410 “Compendium~~the Compendium of Accounting ~~Standards”~~Standards (Compendio de Normas Contables y Manual del Sistema de Información), or the Compendium, and the rules of the SBIF. ~~The SBIF also makes summary financial information available the first Thursday of the subsequent month after each monthly closing.~~ Although Chilean banks are required to apply IFRS as issued by the IASB as of January 1, 2009, certain exceptions introduced by the SBIF prevent banks from achieving full convergence, for example loan loss provisions, assets received in lieu of payment among others. Also, the SBIF is vested with the authority to issue specific orders to banks, including on accounting matters. In those situations which are not addressed by the guidance issued by the SBIF, institutions must follow the generally accepted accounting principles issued by the Association of Chilean Accountants, which coincide with IFRS as issued by the IASB. However, our consolidated annual financial statements as of and for the three years ended December 31, ~~2014~~2015 have been prepared in accordance with IFRS in order to comply with SEC requirements.

Our consolidated financial statements as of and for the year ended December 31, 2012 incorporate the financial statements of CorpBanca, its subsidiaries (except Helm Bank) and the New York Branch. Our consolidated financial statements as of and for the year ended December 31, 2013 incorporate the financial statements of CorpBanca, all of its subsidiaries and the New York Branch. Our consolidated financial statements as of and for the year ended December 31, 2014 incorporate the financial statements of CorpBanca, all of its subsidiaries and the New York Branch. Our consolidated financial statements include the necessary adjustments and reclassifications to the incorporated financial statements of each of CorpBanca’s subsidiaries and the New York Branch to bring their accounting policies and valuation criteria into line with those applied by the Bank, in accordance with IFRS-IASB.

The securities laws of Chile, which govern open or publicly listed companies such as ours, have as one of their principal objectives promoting disclosure of all material corporate information to the public. Chilean disclosure requirements, however, differ from those in the United States in some important respects. In addition, although Chilean law imposes restrictions on insider trading and price manipulation, applicable Chilean laws are different from those in the United States and in certain respects the Chilean securities markets are not as highly regulated and supervised as the United States securities markets.

Chile imposes controls on foreign investment and repatriation of investments that may affect our investors’ investment in, and earnings from, our ~~ADSs~~ADSs.

~~Equity investments in Chile by persons~~Investors who are not Chilean residents have generally been subject to various exchange control regulations which restrict the repatriation of the investments and earnings therefrom. In April 2001, the Central Bank of Chile eliminated the regulations that affected foreign investors except that investors are ~~still~~ required to provide the Central Bank of Chile with information related to equity investments and conduct such operations within the Formal Exchange Market. See “Item 10. Additional Information—D. Exchange Controls” for a discussion of the types of information required to be provided.

Owners of ADSs are entitled to receive dividends on the underlying shares to the same extent as the holders of shares. Dividends received by holders of ADSs will be converted into U.S. dollars and distributed net of foreign currency exchange fees and fees of the depositary and will be subject to Chilean withholding tax, currently imposed at a rate of 35% (subject to credits in certain cases). If for any reason, including changes in Chilean laws or regulations, the depositary were unable to convert Chilean pesos to U.S. dollars, investors in our ADSs may receive dividends and other distributions, if any, in Chilean pesos.

Additional Chilean restrictions applicable to holders of our ADSs, the disposition of the shares underlying them or the repatriation of the proceeds from such disposition or the payment of dividends could be imposed in the future and we cannot advise you as to the duration or impact of such restrictions, if imposed.

The legal restrictions on the exposure of Chilean pension funds may adversely affect our access to ~~funding~~funding.

Chilean regulations impose restrictions on the share of assets that a Chilean pension fund management company (Administradora de Fondos de Pensiones, or AFP) may allocate: (i) per fund (considering all sub-funds within an AFP (A, B, C, D or E)), to deposits in checking accounts and term deposit accounts and in debt securities issued by a single banking institution (or guaranteed by such bank)~~. These investments must not exceed the value of a multiple set forth by the Central Bank of Chile, which shall fluctuate between 0.5 and 1.5 multiplied by such bank’s equity (~~~~patrimonio~~~~) (1.0 as of December 31, 2013)~~; (ii) per type of ~~sub-~~

~~fund,~~sub-fund, to shares, deposits, derivatives and debt securities of a single banking institution (or guaranteed by such bank); ~~investments which must not exceed 9% of the value of the relevant sub-fund;~~ and (iii) per fund (considering all sub-funds), to shares issued by a single banking institution, investments not exceeding 2.5% of the value of such banking institution’s subscribed shares with a maximum limit equal to 2.5% of the value of each with respect to banks in which a shareholder owns directly or indirectly more than 50% and less than 65% of its voting capital.institution. Additionally, each fund managed by an AFP is permitted to make deposits with a bank for an amount not to exceed the equivalent of such bank’s equity. If the exposure of a pension fund managed by an AFP to a single bank exceeds such limit for investments in securities, the AFP for such pension fund is required to reduce the fund’s exposure below the limit within three years.

As of December 31, ~~2014,~~2015, the aggregate exposure of AFPs to us was Ch$~~861,605~~967,726 million or ~~0.87%~~0.89% of their total assets. If the exposure of any AFP to us exceeds the regulatory limit, we would need to seek alternative sources of funding, which could be more expensive and, as a consequence, may have a material adverse effect on our business, financial condition and results of operations.

Pension funds must also comply with other investment limits. In 2007, MK2 was approved, relaxing the limits on making investments abroad in order to permit pension funds to further diversify their investment portfolios. As of December 31, 2014, the maximum limit on making certain types of investments abroad was 80% (per fund, with different limits per each sub-fund). As a result, pension funds may change the composition of their portfolios, including reducing their deposits with local banks. As of December 31, 2014, 3.9% of our time deposits were from AFPs. Although the legislation referred to above is intended to promote a gradual relaxation of the investment limits, and we may be able to substitute the reduced institutional funds with retail deposits, there can be no assurance that this occurrence will not have a materially adverse impact on our business, financial condition and results of operations.

~~Increased regulation of the financial services industry in Chile or Colombia could increase our costs and result in lower profits~~

As a result of the 2008 financial crisis, there has been an increase in government regulation of the financial services industry in many countries. Such regulation may also be increased in Chile or Colombia including the imposition of higher capital requirements, heightened disclosure standards and restrictions on certain types of transaction structures. In addition, novel regulatory proposals are abound in the current environment. If enacted, new regulations could require us to inject further capital into our business as well as in businesses we acquire, restrict the type or volume of transactions we enter into, or set limits on or require the modification of rates or fees that we charge on certain loans or other products, any of which could lower the return on our investments, assets and equity. Although we currently comply with the minimum regulatory capital ratio required under the Chilean or Colombian banking regulations, no assurance can be given that in the future we will not need to inject additional capital into our business if such regulation is amended. We may also face increased compliance costs and limitations on our ability to pursue certain business opportunities.

Our results of operations depend to a great extent on our net interest income. In 2012, 2013 and 2014, our ratio of net interest income to total operating income was 57.5%, 65.1% and 63.6%, respectively. Changes in market interest rates in Chile or Colombia could affect the interest rates earned on our interest-earning assets differently from the interest rates paid on our interest-bearing liabilities leading to a reduction in our net interest income. Interest rates are highly sensitive to many factors beyond our control, including the reserve policies of the Central Bank of Chile and Colombia, deregulation of the financial sector in Chile and Colombia, domestic and international economic and political conditions and other factors. Yields on the Chilean government’s 90-day benchmark rate reached a high of 5.2% and a low of 4.8% in 2012, a high of 5.1% and a low of 4.8% in 2013 and a high of 4.5% and a low of 3.7% in 2014. On the other hand, the Colombian government does not issue short-term bonds of 30, 60 or 90 days as the Chilean government does. Instead, every month a committee of the Central Bank of Colombia determines the benchmark rate in order to achieve a specific goal of inflation. Yields on the Colombian benchmark rate reached a high of 5.25% and a low of 4.25% for 2012, a high of 4.0% and a low of 3.25% for 2013 and a high of 4.5% and a low of 3.25% for 2014. As of December 31, 2012, 2013 and 2014, we had Ch$1,112,435 million, Ch$889,087 million and Ch$1,156,896 million, respectively, in financial investments available-for-sale. In the current global economic climate, there is a greater degree of uncertainty and unpredictability in the policy decisions and the setting of interest rates by the Central Bank of Chile and Central Bank of Colombia and, as a result, any volatility in interest rates could adversely affect us, including our future financial performance and the market value of our securities.

Future increases in the corporate tax rate ~~in Chile~~ or additional modifications to the ~~Chilean~~ tax ~~system to finance future social reforms~~systems of the countries in which we operate may have a material adverse effect on us.

On September 29, 2014, Law No. 20,780, or the Tax Reform, was published in the Chilean Official Gazette, introducing the most significant amendments to the Chilean tax system over the last 30thirty years and strengthening the powers of the Chilean IRS to control and prevent tax avoidance. One of the main purposes of this reform was to finance major educational reforms under discussion in the Chilean Congress.

One of the most important changes introduced by the Tax Reform is the creation of two separate taxation systems in the Income Tax Law: (i) the attributed income system or (ii) the partially integrated system. This law also called for a gradual increase in the corporate income tax rate from 20% in 2013 to:

Beginning in 2017, the applicable tax rate will depend on the tax system chosen. Taxpayers choosing the ~~Attributed Income~~attributed income system will have a final rate of 25% while those choosing the partially-integrated system will have a transitory rate of 25.5% in 2017 and a final rate of 27% in 2018 and beyond.

Partially integrated system: When the income is actually withdrawn from a company, non-Chilean resident shareholders would be subject to a 35% withholding tax, while Chilean resident shareholders would be required to pay the progressive Complementary Global Tax, with rates ranging between 0% and 35%, against which only a 65% of the corporate tax will be allowed to be used as a credit against the withholding tax or the Complementary Global Tax; provided that, the deduction available to shareholders resident in a country with which Chile has an agreed tax treaty would be 100%.

Foreign source income obtained by taxpayers domiciled or resident in Chile is generally subject to taxes in Chile on a cash basis. However, in the case of branches or other permanent establishments located abroad, both accrual and received income are considered in Chile for tax purposes. Also, taxpayers who obtain passive income from foreign companies, in which they have control,

as defined by ~~the~~ law, will have to pay taxes on accrual and cash basis, for the passive income accrued or perceived by those controlled entities.

Bonds and other debt instruments issued in Chile by Chilean companies are deemed to be located in Chile for capital gains purposes. However, bonds issued outside of Chile by Chilean companies are not deemed located in Chile for capital gain purposes and, consequently, the sale of such bonds by a non-Chilean resident inis not subject to capital gains tax in Chile (according to section 11 of theLey Sobre Impuesto a la Renta or the Chilean Income Tax Law it(it would be considered a foreign source income obtained by a non-Chilean resident).

The Tax Reform may have a material adverse effect on our business, financial condition and results of operations. Furthermore, uncertainty relating to tax legislation in Chile and Colombia poses a constant risk to CorpBanca. Changes in legislation, regulation and jurisprudence can affect tax burdens by increasing tax rates and fees, creating new taxes, limiting stated expenses and deductions, and eliminating incentives and non-taxed income. In addition, the Colombian government has a significant fiscal deficit that may result in future tax increases.

Colombian tax haven regulation could adversely affect our business and financial ~~results~~results.

Decree ~~2193~~1966 of ~~2013~~2014 amended by Decree 2095 of 2014 designates 4437 jurisdictions as tax havens for Colombian tax purposes. ~~It also excludes temporarily seven countries, including Panama, while the Colombian government negotiates tax information exchange agreements with each of them.~~ In October 2014, Panama and Colombia signed a memorandum of understanding by which they agreed to execute a double taxation treaty. However, if Panama ~~and Colombia fail to actually execute the contemplated double taxation treaty by September 20, 2015, Panama would be~~is considered as a tax haven under Colombian tax ~~regulations. As a result,~~regulations, the clients of our Colombian subsidiaries in Panama who are residents in such jurisdiction would be subject to the following regulations: (i) higher withholding tax rates including a higher withholding rates over financial yields derived from investments in the Colombian securities market, (ii) the Colombian transfer pricing regime and its reporting duties, (iii) an assumption for Colombian authorities of residency for the purposes of qualifying a conduct as abusive under tax regulations, (iv) the disallowance of payments made to residents or entities located in tax havens as costs or deductions, unless the respective withholding tax has been applied and (v) other additional information disclosure requirements.

Any ~~additional taxes resulting from changes to tax regulations or the interpretation thereof in Chile or Colombia could adversely affect our consolidated results~~

Uncertainty relating to tax legislation in Chile and Colombia poses a constant risk to CorpBanca. Changes in legislation, regulation and jurisprudence can affect tax burdens by increasing tax rates and fees, creating new taxes, limiting stated expenses and deductions, and eliminating incentives and non-taxed income. In addition, the Colombian government has a significant fiscal deficit that may result in future tax increases. Additional tax regulations could be implemented that could require us to make additional tax payments, negatively affecting our respective results of operations and cash flow. In addition, national or local taxing authorities may not interpret tax regulations in the same way that we do. Differing interpretations could result in future tax litigation and associated costs.

~~Any~~ downgrading of Chile’s or Colombia’s debt credit rating for domestic and international debt by international credit rating agencies may also affect our ~~ratings, our~~ business ~~our~~and future financial ~~performance, stockholders’ equity and the value of our securities~~performance.

Any adverse revisions to Chile’s or Colombia’s credit ratings for domestic and international debt by international rating agencies may adversely affect our ratings, and, as a result, our cost of funding, including interest rates paid on our deposits and securities. If this were to happen, it could have a material adverse effect on our business, future financial performance, stockholders’ equity and the value of our securities.

Our growth and profitability depend on the level of economic activity in Chile, Colombia and other emerging ~~markets~~markets.

Substantially all of our loans are to borrowers doing business in Chile or Colombia. Accordingly, the recoverability of these loans in particular, our ability to increase the amount of loans outstanding and our results of operations and financial condition in general, are dependent to a significant extent on the level of economic activity in Chile and Colombia. The Chilean and Colombian economies have been influenced, to varying degrees, by economic conditions in other emerging market countries. ~~Changes in Chilean or Colombian economic growth in the future or future~~Future developments in or affecting the Chilean or Colombian economies, ~~respectively,~~ including consequences of economic difficulties in emerging and developed markets, including some of our neighbor countries, or a deceleration in the economic growth of Asian or other developed nations to which Chile and Colombia export a majority of their respective goods, could materially and adversely affect our business, financial condition or results of operations.

~~According to data published by the Central Bank of Chile, the Chilean economy grew by 5.6% in 2012, 4.1% in 2013 and slowed to 1.9% in 2014.~~

~~According to data published by the Central Bank of Colombia, the Colombian economy grew by 4% in 2012, 4.9% in 2013 and 4.6% in 2014.~~

Our results of operations and financial condition could also be affected by changes in economic or other policies of the Chilean or Colombian governments, which have each exercised and continue to exercise a substantial influence over many aspects of the private sector, or other political or economic developments in Chile.

Although economic conditions are different in each country, investors’ reactions to developments in one country may affect the securities of issuers in other countries, including Chile. Starting in September 2008, the economic and financial crisis in the United States and Europe sparked a series of financial institution failures across the globe. This resulted in a liquidity crisis and a reduction in growth of the global economy as financial institutions tightened risk policies and reduced lending to banks, corporations and individuals. During 2009, the economies of the United States and some European countries contracted, which, in turn, impacted the Chilean and Colombian economies. Although there have recently been signs of recovery in the global economy, Chile and Colombia, this recovery may be fragile and also may reflect temporary benefits from government stimulus programs that may not be sustained. The ability of certain countries, such as Greece, Portugal, Spain and Italy and companies in those countries and in the Euro zone to repay debt obligations remains uncertain. The effect on consumer confidence of any actual or perceived deterioration in the Chilean or Colombian economies may have a material adverse effect on our business, results of operations and financial condition.

In addition, our financial condition and results of operations could also be affected by regulatory changes in administrative practices ~~changes in economic or other policies of the Chilean or Colombian governments~~ or other political or economic developments in or affecting Chile or Colombia, over which we have no control.

Inflation and government measures to curb inflation could adversely affect our financial condition and results of ~~operations~~operations.

Although Chilean and Colombian inflation have been low in recent years, Chile and Colombia have experienced high inflation in the double-digit levels in the past. Such high levels of inflation in Chile or Colombia could adversely affect the Chilean and Colombian economies and have an adverse effect on our results of operations if such inflation is not accompanied by a matching devaluation of the local currency. We cannot make any assurances that Chilean or Colombian inflation will not revert to prior levels in the future.

The following table shows the annual rate of inflation during the last five years as measured by changes in the Chilean and Colombian consumer price index, or CPI, and as reported by the: (i) Chilean National Institute of Statistics and (ii) Colombian National Administrative Department of Statistics:

~~Source: Chilean National Institute of Statistics / Colombian National Administrative Department of Statistics.~~

During 2010, GDP grew by 5.8% in Chile and grew by 4% in Colombia. In Chile, 2010 ended with 3% inflation, in part supported by additional government and private sector spending to finance the reconstruction work required to restore Chile’s productive capacity and financial aid to the areas affected by the 2010 earthquake and tsunami, and grew in Colombia, resulting in 3.2% inflation. During 2011, GDP grew by 6% and the inflation rate was 4.4% in Chile and GDP grew by 6.6% and the inflation rate was 3.7% in Colombia. During 2012, GDP grew by 5.6% and the inflation rate was 1.5% in Chile and GDP grew by 4% and the inflation rate was 2.4% in Colombia. During 2013, GDP grew by 4.1% and the inflation rate was 3.0% in Chile and GDP grew by 4.3% and the inflation rate was 1.9% in Colombia. During 2014, GDP grew by 1.9% and the inflation rate was 4.6% in Chile and GDP grew by 4.6% and the inflation rate was 3.7% in Colombia. In 2014 the Central Bank of Chile decreased the interbank rate from 4.5% to 3.0% so that the projected inflation could be placed in the 3.0% horizon targeted by the Central Bank of Chile. In Chile, the average interbank rate was 3.8% in 2014. In 2014 the Central Bank of Colombia increased the interbank rate from 3.25% to 4.5% and the average interbank rate was 3.88% in 2014. High levels of inflation or deflation in Chile or Colombia could adversely affect the Chilean or Colombian economies and have an adverse effect on our business, financial condition and results of operations.

We may be unsuccessful in addressing the challenges and risks presented by our operations in countries outside Chile or ~~Colombia~~Colombia.

We now operate a banking business in Colombia through CorpBanca Colombia and in Panamá through subsidiaries of CorpBanca Colombia. Our operations are focused on retail banking, as well as wholesale and commercial banking and providing financing and deposit services to ~~small-to-medium-sized companies~~SMEs and individuals with medium-high income levels. CorpBanca Colombia provides a broad range of commercial and retail banking services to its customers, operating principally in the cities of Bogotá, Medellín, Cali, Bucaramanga, Cartagena and Barranquilla.

We have limited experience conducting credit card and consumer finance businesses in countries outside Chile. Accordingly, we may not be successful in managing credit card and consumer finance operations outside of our traditional domestic market in Chile. We may face delays in payments by customers and higher delinquency rates in any market we enter into, which could necessitate higher provisions for loan losses and, consequently, have an adverse effect on our financial performance.

Colombia has experienced internal security issues that have had or could have in the future a negative effect on the Colombian ~~economy~~economy.

Colombia has experienced internal security issues, primarily due to the activities of guerrilla groups such as the ~~FARC,~~Revolutionary Armed Forces of Colombia(Fuerzas Armadas Revolucionarias de ColombiaortheFARC), National Liberation Army (Ejército de Liberación Nacional or the ELN), paramilitary groups and drug cartels. In remote regions of the country with minimal governmental presence, these groups have exerted influence over the local population and funded their activities by protecting, and rendering services to drug traffickers.

Despite the ~~Colombian government’s “democratic security” program and~~ ongoing peace ~~conversations with~~negotiations between the Colombian government and FARC, which have reduced guerrilla and criminal activity, particularly in the form of terrorism attacks, homicides, kidnappings and extortion, such activities persist in Colombia, and possible escalation of such activities and the effects associated with them have had and may have in the future a negative impact on the Colombian economy and on our operations in Colombia, including our customers, employees, results of operations and financial condition, and physical assets.

While the terms of a final peace agreement are still unknown, the government is likely to subject the proposed final text of these agreements to a referendum. The final agreement is expected to provide FARC with several benefits including: (i) changes in legislation concerning access to credit and financial services; (ii) tax benefits, and (iii) more favorable labor regulations. Such agreements and other legistalive changes arising therefrom may have a negative impact on the Colombian economy and on our operations in Colombia.

ELN, paramilitary groups and drug cartels’ are not part of the peace negotiations.It is expected that their activities will continue.

Tensions with Venezuela and Ecuador may affect the Colombian economy and, consequently, our results of operations and financial ~~condition~~condition.

Diplomatic relations with Venezuela and Ecuador, two of Colombia’s main trading partners, have from time to time been tense and affected by events surrounding the Colombian armed forces combat of the FARC throughout Colombia, particularly on Colombia’s borders with Venezuela and Ecuador. ~~Any~~

Additionally, further deterioration in relations with Venezuela and Ecuador may result in the closing of borders, the imposition of trade barriers or a breakdown of diplomatic ties, any of which could have a negative impact on Colombia’s trade balance, economy and general security situation, which may adversely affect our results of operations and financial condition.

In 2015, the Venezuelan ~~political events may affect CorpBanca Colombia’s operations~~

~~In February 2014, Venezuela experienced political unrest and demonstrations across~~government abruptly closed the ~~country that sparked a series of violent incidents that~~Colombian-Venezuelan border which resulted in ~~several deaths~~a substantial decrease in trade between Colombia and ~~numerous injuries. During April~~Venezuela and ~~May, 2014, anti-government demonstrations in Venezuela caused numerous injuries~~increased diplomatic tensions between the two governments. As of March 2016, the border remains closed and ~~protestors held demonstrations calling for new elections. These demonstrations in Venezuela resulted in some~~the Venezuelan government has announced that such closure is indefinite. A continued closure of the ~~country’s worst political violence, historically, with numerous deaths~~border may result in further deterioration of trade and injuries, as well as destruction of property. It is unknown what effects any future demonstrations may have on Venezuela. Any future political unrest and demonstrations in Venezuela, may have an adverse effect in CorpBanca’s results of operations and financial condition.

~~Government policies and actions, and judicial decisions in Colombia~~ could ~~significantly affect the local economy and, as a result, our operations in Colombia and our results of operations and financial condition~~

Our operations in Colombia and our results of operations and financial condition may be adversely affected by changes in Colombian governmental policies and actions, and judicial decisions, involving a broad range of matters, including interest rates, exchange rates, exchange controls, inflation rates, taxation, banking and pension fund regulations and other political or economic developments affecting Colombia. The Colombian government has historically exercised substantial influence over the economy, and its policies are likely to continue to have a ~~significant effect on~~negative impact in the Colombian companies. The President of Colombia has considerable power to determine governmental policies and actions relating to the economy, and may adopt policies that could negatively affect our business in Colombia. Future governmental policies and actions, or judicial decisions, could adversely impact the results of operations or financial condition of our business in Colombia.economy.

Constitutional collective actions (acciones populares), class actions (acciones de grupo) and other similar legal actions in Chile and Colombia involving claims for significant monetary awards against financial institutions may have an adverse effect on our business and results of ~~operations~~operations.

Under the Chilean Consumer Protection Act and under the Colombian Constitution, individuals may initiate ~~constitutional~~ collective or class actions to protect their collective or class rights, ~~respectively.~~ as applicable. In the past few years, Chilean financial institutions have experienced limited numbers of collective and class actions mostly relating to abusive clauses in standard contracts.

In the past few years, Colombian financial institutions, including CorpBanca Colombia, have experienced a substantial increase in the aggregate number of these actions. The great majority of such actions have been related to fees, financial services and interest rates, and their outcome is uncertain. Pursuant to Law No. 1,425 of 2010, monetary awards for plaintiffs in constitutional collective actions (acciones populares) were eliminated as of January 1, 2011. Nevertheless, individuals continue to have the right to initiate constitutional or class actions against CorpBanca Colombia.

Future restrictions on interest rates or banking fees could negatively affect our profitability.

In the future, additional regulations in ~~Colombia~~the jurisdictions where we operate could impose limitations regarding interest rates or fees charged by CorpBanca. Any such limitations could materially and adversely affect our ~~profitability~~results of operations and financial ~~results~~situation.

The Colombian Commerce Code limits the amount of interest that may be charged in commercial transactions. In the future, regulations could impose limitations regarding interest rates or fees we charge. Any such limitations could materially and adversely affect our results of operations and financial position. In the past, there have been disputes in Colombia among merchants, payment services and banks regarding interchange fees. Although such disputes have been resolved, the ~~Colombian Superintendency of Industry and Commerce (~~~~Superintendencia de Industria y Comercio~~~~), or the~~ SIC, may initiate new investigations relating to the interchange fees.

This possibility may lead to additional decreases in such fees, which in turn could adversely our operations in Colombia and our consolidated financial results.

Furthermore, ~~pursuant to article 62 of Law No. 1,430 of 2010,~~ the Colombian ~~Congress granted~~government has the ~~government power and~~ authority to establish and define criteria and formulas applicable to the calculation of banking fees and other charges and ~~the authority~~ to ~~define maximum limits to~~establish caps on the banking fees, credit card fees, and ~~charges.~~other charges that we impose on our customers. On December 20, 2011, the Colombian ~~Government~~government used ~~the~~its authority ~~granted by Law No. 1,430 of 2010 and established in Decree 4,809 of 2011~~to set a cap on the fees banks can charge on withdrawals ~~done~~ from ATMs outside their own networks. ~~Under~~Additionally, under Colombian regulation, banks are prohibited from charging prepayment penalties or fees on loans, other than in mortgage loans, except when the outstanding amount of a loan is more than the equivalent of 880 monthly minimum wages, or SMMLV (approximately US$~~221,000)~~180,861). IfIn mortgage loans, irrespective of their principal amount or in other loans in which the outstanding amount ~~of a loan~~ is ~~more~~greater than ~~the equivalent of~~ 880 SMMLV, prepayment penalties or fees may be charged but only when expressly contemplated under the governing loan agreement. Further limits or regulations regarding banking fees, and uncertainties with respect thereto could have a negative effect on CorpBanca Colombia and our results of operations and financial condition.

Historically, Colombian banks have not paid interest on amounts deposited in checking accounts. We pay interest on some checking accounts under certain conditions. If competition or other factors lead us to pay higher interest rates on checking accounts, to relax the conditions under which we pay interest or to increase the number of checking accounts on which we pay interest, any such change could have a material adverse effect on our business, financial condition and results of operations.

Insolvency ~~law in Chile and Colombia~~laws may limit our monetary collection and ability to enforce our ~~rights~~rights.

A new Insolvency Act was published in Chile in the Official Gazette on January 9, 2014 (the Insolvency Act) and came into effect on October 9, 2014. Under this new Insolvency Act, monetary collection and enforcement of rights by a creditor may face limitations such as those arising from the Insolvency Protection (as defined below) recognized by the act. For more information on these limitations please see “Item 4—Information on the Company—B. Business Overview—Recent Regulatory Developments in Chile”.

Colombian insolvency laws provide that creditors of an insolvent debtor in default are prohibited from initiating collection proceedings outside the bankruptcy or reorganization process of such debtor. In addition, all collection proceedings outstanding at the beginning of any bankruptcy or reorganization process of any insolvent debtor must be suspended and creditors are prevented from enforcing their rights against the collateral and other assets of the debtor until the reorganization has been agreed (in which case the collection proceeding is resolved within the reorganization agreement) or it is declared that no reorganization was agreed.

~~On June 12, 2012, the~~ Additionally, Colombian ~~Congress enacted Law 1,564, which provides~~laws provide insolvency protection for non-merchant individuals. ~~Pursuant to this~~This insolvency ~~regulation,~~protection entails that, once a non-merchant individual has ceased paying his or her debts, such individual can initiate a voluntary insolvency proceeding before a notary public or mediator to reach an agreement with its creditors. The terms of any agreement reached with a group (two or more) of creditors that represent more than 50% of the total amount of the claims will be mandatorily applicable to all relevant creditors. ~~The law also provides for increased debtor~~There are other protections ~~including~~such as an automatic stay for a maximum of 90 days. These legal limitations make it difficult to recover on defaulted loans, and as a result, may cause CorpBanca Colombia to enhance its credit requirements which would result in

decreased lending to individuals by making it more expensive. In addition, increased difficulties in enforcing debt and other monetary obligations due to this insolvency law could have an adverse effect on CorpBanca Colombia and our results of operations and financial condition.

The Central Bank of Colombia may impose requirements on our (and other Colombian residents’) ability to obtain loans in foreign ~~currency~~currency.

The Central Bank of Colombia may impose certain mandatory deposit requirements in connection with foreign ~~currency-denominated~~currency denominated loans obtained by Colombian residents, including CorpBanca ~~Colombia. Although~~Colombia, although no such mandatory deposit requirement is currently in ~~effect, a mandatory deposit requirement was set at 40% in 2008 after the Colombian peso appreciated against foreign currencies.~~effect. We cannot predict or control future actions by the Central Bank ~~of Colombia~~ in respect of ~~such~~ deposit requirements, which may involve the establishment of a ~~different~~ mandatory deposit ~~percentage. The~~percentage, and the use of such measures by the Central Bank may raise our cost of ~~Colombia may be a disincentive for CorpBanca Colombia~~raising funds and reduce our ~~clients in Colombia to obtain loans denominated in a foreign currency.~~

~~Our operations in Colombia may be unable to collect on collateral or guarantees securing loans, which may adversely affect our results of operations and~~ financial ~~condition~~

CorpBanca Colombia makes loans that are secured by collateral, including real estate and other assets that are generally located in Colombia. The value of collateral may significantly fluctuate or decline due to factors beyond their control, including, for example, economic and political conditions in the country. An economic slowdown may lead to a downturn in the Colombian real estate market, which may, in turn, result in declines in the value of real estate securing loans to levels below the principal balances of these loans. Any decline in the value of the collateral securing loans may result in reduced recoveries from collateral realization and have an adverse effect on our results of operations and financial condition.

CorpBanca Colombia also makes loans on the basis of guarantees from relatives, affiliates or associated persons of borrowers. To the extent that guarantors encounter financial difficulties due to economic conditions, personal or business circumstances, or otherwise, the ability of CorpBanca Colombia to enforce such guarantees may be impaired.

In addition, CorpBanca Colombia may face difficulties in enforcing their rights as a secured creditor against borrowers, collateral or guarantees. In particular, timing delays and procedural problems in realizing against collateral, as well as a debtor-protective judicial interpretations of the law, may make it difficult to foreclose on collateral, realize against guarantees or enforce judgments in CorpBanca Colombia’s favor, which could materially and adversely affect our results of operations and financial condition.

There are also certain provisions of Colombian Law No. 1,676 that may affect our rights to foreclose on or liquidate movable assets pledged in favor of our Colombian subsidiaries. Colombian Law No. 1,676, issued on August 20, 2013, and applicable as from February 21, 2014, created a new registry for liens over movable assets. Creditors registering liens are granted priority based on the date of registration of the liens in the new registry. This “first in time, first in right” rule also applies to those liens granted before the enactement of the law. We are currently registering liens granted in our favor prior to February 21, 2014, however, there is a risk that third parties with conflicting liens may also try to obtain registration over the same assets, in which case the first party to register a lien will have priority over any others. In addition, given the recent enactment of this law, there is uncertainty as to how the law will be interpreted and applied, including how movable assets underlying the securities will be valued by the registry.

~~Our operations in Colombia may face legal and other challenges to maximizing revenue from credit card fees and other fees from customers~~

CorpBanca Colombia’s credit card businesses face risks relating to the pricing of fees and commissions charged to merchants (merchant discounts) and the pricing of bank interchange fees charged by issuer banks to acquiring banks. Banks and card processors in Colombia have been subject to administrative investigations regarding the fees and commissions that are charged to the merchants by the acquiring banks and in respect to the banking interchange fees.

~~In the past, the SIC has conducted investigations on the practices of~~~~Asociación Gremial de Instituciones Financieras Credibanco~~ ~~(Visa franchisee in Colombia) and~~~~Redeban Multicolor S.A.~~ (MasterCard franchisee in Colombia), the entities chosen by most Colombian banks to manage the credit card system in Colombia, relating to alleged price fixing agreements among Colombian banks relating to fees and commissions charged to merchants.

As a result of these investigations, the fees charged to merchants and bank interchange fees could decrease, which could also lead to changes in commercial strategies that could affect CorpBanca Colombia’s and our results of operations and financial condition. In addition, fees charged for other banking services have and may continue to be reduced in the future as a result of regulatory measures and/or pressure from retailers and interest groups.

~~Our Colombian operations face uncertainty regarding consumer protection laws~~

Law No. 1,328 of 2009, as amended by Law No. 1,748 of 2014, created a customer protection regime with respect to financial institutions. The financial reform law provides a bill of rights for consumers of financial services and products, including the right to receive clear, complete and reliable information about the services and products offered by financial institutions. The law and the decrees and regulations issued pursuant to it also contain specific obligations for financial institutions, including a duty to maintain a financial ombudsman in charge of consumer protection and procedures regulating the responsibilities and function of the ombudsman, a duty to create a financial consumer attention center pursuant to terms set by the Colombian Superintendency of Finance, an obligation to provide services and products under the same conditions offered to the general public, and a prohibition on the inclusion of predatory or abusive clauses in contracts with consumers. Any violation of this law or the decrees and regulations issued pursuant to this law by CorpBanca Colombia could result in monetary or administrative sanctions or restrictions on its operations.flexibility.

RISKS RELATING TO ~~OUR CONTINUING~~EXPANSION AND INTEGRATION OF ~~HELM BANK~~ACQUIRED BUSINESSES

We have been expanding the scope of our operations over the past few years, and we expect that this expansion will continue. As we continue to grow, we must improve our operational, technical and managerial knowledge and compliance systems in order to effectively manage our operations across the expanded group. Failure to integrate, monitor and manage expanded operations could have a material adverse effect on our business, reputation and financial results. Our future growth will also depend on our access to internal and external financing sources. We may be unable to access such financing on commercially acceptable terms or at all.

Integration of acquired or merged businesses involves certain risks that may have a material adverse effect on usus.

We have engaged in a number of mergers and acquisitions in the past, including the ~~Banco Santander~~CorpBanca Colombia Acquisition, ~~in 2012,~~ the Helm Bank Acquisition, ~~in 2013,~~ and may make further mergers and acquisitions in the future as part of our growth strategy. We believe that these transactions will contribute to our continued growth and competitiveness in the Chilean, Colombian, and international banking sectors.

Any acquisition and merger of institutions and assets and the integration of such institutions and assets involves certain risks including the risk that:

integrating new networks, information systems, personnel, financial and accounting systems, risk and other management systems, financial planning and reporting, products and customer bases into our existing business may run into difficulties, cause us to incur unexpected costs and operating expenses and place additional demands on management time;

we may incur unexpected liabilities or contingencies relating to acquired businesses;

antitrust and other regulatory authorities may impose restrictions or limitations on the terms of the acquisition or merger, require disposition of certain assets or businesses or withhold their approval of such transaction; and

the expected operation and financial synergies and other benefits from such mergers or acquisitions may not be fully achieved.

If we fail to achieve the business growth opportunities, cost savings and other benefits we anticipate from mergers and acquisition transactions, or incur greater integration costs than we have estimated, our results of operations and financial condition may be materially and adversely affected.

Acquisitions and strategic partnerships may not perform in accordance with expectations, may fail to receive required regulatory approvals or may disrupt our operations and adversely affect our business financial condition and results of ~~operations~~operations.

A component of our strategy is to identify and pursue growth-enhancing strategic opportunities. As part of that strategy we have consummated (i) the Banco Santander Colombia Acquisition in 2012 (today “CorpBanca Colombia”); and (ii) the Helm Bank Acquisition in 2013. Helm Bank was merged with and into CorpBanca Colombia on June 1, 2014. We will continue to consider additional strategic acquisitions and alliances from time to time, inside and outside of Chile and Colombia. Strategic acquisitions and alliances, including the Helm Bank Acquisition, could expose us to risks with which we have limited or no experience. Future acquisitions may also be subject to regulatory approval, which we may not receive, particularly in view of our increasing market share in the Colombian banking industry.

We must necessarily base any assessment of potential acquisitions and alliances on assumptions with respect to operations, profitability and other matters that may subsequently prove to be incorrect. Future acquisitions and alliances may not produce anticipated synergies or perform in accordance with our expectations and could adversely affect our business, financial condition and results of operations.

In addition, new demands on our existing organization, management and employees resulting from the integration of new acquisitions could disrupt our operations and adversely affect our business, financial condition and results of operations.

We may have problems successfully completing the implementation of a new information technology core banking system in ~~Colombia~~Colombia.

A key element of our expansion strategy consists in the acquisition of existing businesses and their integration into our business model and administration and management processes. During ~~2014,~~2015, we continued the integration process of Helm Bank and its subsidiaries into our pre-existing operations and business model, including integration of back-office functions. An important step of this integration process is the implementation of a new information technology core banking system in Colombia, which we have been implementing since ~~January 2014.~~February 2013. If we are unable to successfully complete the implementation of this new information technology core banking system in Colombia, the integration process in Colombia could be adversely affected, which could adversely affect our financial condition, results of operations and liquidity. The implementation of the new information technology core banking system in CorpBanca Colombia is underway.

CorpBanca may be unable to fully realize the anticipated benefits of the Itaú-CorpBanca ~~Merger~~Merger.

The Itaú-CorpBanca Merger involves bringing together two large financial institutions that currently operate as independent companies. CorpBanca will be required to devote significant management attention and resources to integrating certain aspects of the business practices and operations of CorpBanca and Itaú Chile.

The success of the Itaú-CorpBanca Merger will depend, in part, on CorpBanca’s ability to realize anticipated revenue synergies, cost savings and growth opportunities resulting from the combination of the businesses of CorpBanca and Itaú Chile. ~~CorpBanca hopes~~We expect to generate synergies resulting from optimization of organizational structures, scalable IT systems, savings related to the branch network and reductions in administrative expenses. There is a risk, however, that CorpBanca may not be able to combine the businesses of CorpBanca and Itaú Chile in a manner that permits CorpBanca to realize these revenue synergies, cost savings and growth opportunities in the time, manner or amounts CorpBanca currently expects or at all. Potential difficulties CorpBanca may encounter as part of the merger process include, among other things:

complexities associated with managing Itaú-CorpBanca;

the need to implement, integrate and harmonize various business-specific operating procedures and systems, as well as the financial, accounting, information and other systems of CorpBanca and Itaú Chile;

potential loss of key employees as a result of implementing the ~~proposed Transactions;~~Itaú-CorpBanca Merger;

the need to coordinate the existing products and customer bases of CorpBanca and Itaú Chile; and

potential unknown liabilities and unforeseen increased expenses or delays associated with the merger and the other transactions described in the Transaction Agreement (as defined below), or the ~~Transactions.~~Itaú-CorpBanca Merger.

In addition, CorpBanca and Itaú Chile have operated and, until the completion of the merger, will continue to operate separately. It is possible that the integration process could result in:

diversion of management’s attention from their normal areas of responsibility to address issues related to the ~~Transactions;~~Itaú-CorpBanca Merger; and

the disruption of CorpBanca’s or Itaú Chile’s ongoing businesses or inconsistencies in its standards, controls, procedures and policies,

each of which could adversely affect their ability to maintain good relationships with its customers, suppliers, employees and other constituencies, or to achieve the anticipated benefits of the ~~proposed Transactions,~~Itaú-CorpBanca Merger, and could increase costs or reduce their earnings or otherwise adversely affect the business, financial condition, results of operations and/or prospects of the merged entity following the completion of the merger, Itaú CorpBanca, which we refer to herein as, and will be referred to following the completion of the merger as, Itaú-CorpBanca. Actual revenue synergies, cost savings, growth

opportunities and efficiency and operational benefits resulting from the merger may be lower and may take CorpBanca longer than it currently expects.

The integration of two large companies also presents significant management challenges. In order to achieve the anticipated benefits of the merger, the operations of the two companies will need to be reorganized and their resources will need to be combined in a timely and flexible manner.

There can be no assurance that CorpBanca will be able to implement these steps as anticipated or at all. If CorpBanca fails to consummate the Itaú-CorpBanca Merger within the time frame that is currently contemplated or to the extent that is currently planned, or if for any other reason the expected revenue synergies, cost savings and growth opportunities fail to materialize, ~~the Transactions,~~it may not produce the benefits that CorpBanca currently anticipates.

CorpBanca has and will continue to incur significant costs and expenses in connection with the Itaú-CorpBanca ~~Merger~~Merger.

CorpBanca has incurred and will continue to incur substantial expenses in connection with the ~~proposed Transaction.~~Itaú-CorpBanca Merger. These costs and expenses include financial advisory, legal, accounting, consulting and other advisory fees and expenses, reorganization and restructuring costs, filing fees, printing expenses and other related charges. Some of these costs are payable by CorpBanca and Itaú Chile regardless of whether the Itaú-CorpBanca Merger is completed. There are also many processes, policies, procedures, operations, technologies and systems that must be integrated in connection with the Itaú-CorpBanca Merger. While CorpBanca has assumed that a certain level of expenses would be incurred in connection with the ~~Transactions,~~Itaú-CorpBanca Merger, there are many factors beyond CorpBanca’s control that could affect the total amount or the timing of the related expenses.

There may also be additional unanticipated significant costs in connection with the Itaú-CorpBanca Merger that CorpBanca may not recoup. These costs and expenses could, particularly in the near term, exceed the savings that CorpBanca expects to achieve from the elimination of duplicative expenses and the realization of economies of scale, other efficiencies and cost savings. Although CorpBanca expects that these savings will offset these integration and implementation costs over time, this net benefit may not be achieved in the near term or at all.

Itaú Unibanco will control the board of directors of Itaú~~-CorpBanca~~-CorpBanca.

Itaú Unibanco and CorpGroup will collectively appoint a majority of the directors of the board of directors of Itaú-CorpBanca after the completion of the Transactions. The Itaú-CorpBanca Shareholders Agreement to be entered into by Itaú Unibanco and Corp Group contemplates that the directors appointed by them will vote, to the extent permited by the law, in a block and in accordance with the recommendation of Itaú Unibanco, subject to certain exceptions. Accordingly, Itaú Unibanco will be able to control the actions taken by the board of directors of Itaú-CorpBanca on most matters.

Uncertainties associated with the Itaú-CorpBanca Merger may cause a loss of management personnel and other key employees that could adversely affect CorpBanca, Itaú Chile and/or Itaú~~-CorpBanca~~-CorpBanca.

The success of the Itaú-CorpBanca Merger is dependent, in part, on the experience and industry knowledge of their senior management and other key employees of CorpBanca and Itaú Chile and their ability to execute their business plans. In order to be successful, CorpBanca, Itaú Chile and Itaú-CorpBanca must be able to retain the senior management and other key employees and their ability to attract highly qualified personnel in the future. Current and prospective employees of CorpBanca and Itaú Chile may experience uncertainty about their roles within Itaú-CorpBanca following completion of the Itaú-CorpBanca Merger, which may have an adverse effect on the ability of CorpBanca, Itaú Chile or Itaú-CorpBanca to retain or attract senior management and other key employees, and in turn, on our business, financial condition and results of operations, regardless of the success of the Itaú-CorpBanca Merger.

Itaú-CorpBanca’s future results will suffer if it cannot effectively manage its expanded operations following completion of the Itaú-CorpBanca ~~Merger~~Merger.

Following the completion of the Itaú-CorpBanca Merger, the size of the business of Itaú-CorpBanca will be significantly larger and more complex than the current business of CorpBanca or Itaú Chile. Itaú-CorpBanca’s future success will depend, in part, on CorpBanca’s ability to manage this expanded business, posing substantial challenges for management. There can be no assurances that Itaú-CorpBanca will be successful or that it will realize the expected operating efficiencies, cost savings, revenue synergies and other benefits currently anticipated by CorpBanca and Itaú Chile from the Itaú-CorpBanca Merger.

~~CorpBanca must obtain approval of its shareholders to the Transactions, which, if delayed or not obtained, may jeopardize or delay its consummation~~

The Transactions are conditioned on the approval by the affirmative vote of the holders of two-thirds of the outstanding shares of CorpBanca common stock. If the shareholders of CorpBanca do not provide such approval, then CorpBanca and Itaú Chile cannot consummate the Transactions. CorpBanca has not yet scheduled a shareholders meeting for the purpose of obtaining such vote.

~~Required Regulatory approvals may not be received, may take longer than expected or may impose conditions that are not presently anticipated or cannot be met~~

The Transactions were subject to various customary regulatory approvals that must be obtained from certain bank and other governmental authorities in several jurisdictions prior to their consummation. As of the date of this annual report, we have secured all required regulatory approvals other than the approval of the SBIF, which remains outstanding. The SBIF may impose conditions on the granting of such approval. Such conditions or changes and the process of obtaining this regulatory approval could have the effect of delaying completion of the merger or of imposing additional costs or limitations on CorpBanca. The SBIF approval may not be received at any time, may not be received in a timely fashion, and may contain conditions on the completion of the merger. In addition, CorpBanca and Itaú Chile may elect not to consummate the Itaú-CorpBanca Merger if, in connection with such approval, the SBIF imposes any restriction, requirement or condition that would reasonably be expected to have a material adverse effect on either CorpBanca and its subsidiaries, taken as a whole, or Itaú Chile, Itaú Colombia and their subsidiaries, taken as a whole.

Failure to consummate the Itaú-CorpBanca Merger could negatively impact the share price and the future business and financial results of ~~CorpBanca~~CorpBanca.

If the Itaú-CorpBanca Merger is not consummated, the ongoing businesses of CorpBanca may be adversely affected and, without realizing any of the benefits of having consummated the Itaú-CorpBanca Merger, CorpBanca will be subject to a number of risks, including the following:

CorpBanca and/or Itaú Chile will be required to pay costs and expenses relating to the ~~proposed Transactions;~~Itaú-CorpBanca Merger;

matters relating to the ~~Transactions~~Itaú-CorpBanca Merger may require substantial commitments of time and resources by CorpBanca’s management, which could otherwise have been devoted to other opportunities that may have been beneficial to CorpBanca; and

the Transaction Agreement restricts CorpBanca, without Itaú Chile’s ~~consent;~~consent and subject to certain exceptions, from taking certain actions until the Itaú-CorpBanca Merger is consummated. These restrictions may prevent CorpBanca from pursuing otherwise attractive business opportunities and making other changes to their businesses that may arise prior to consummation of the Transactions.

If the Transactions are not consummated, these risks may materialize and may adversely affect CorpBanca business, financial results and share price.

The Transaction Agreement contains provisions that restrict CorpBanca’s ability to pursue alternative ~~transactions~~transactions.

The Transaction Agreement prohibits the parties from soliciting, discussing, negotiating or entering into alternative transactions. This provision could discourage a third party that may have an interest in acquiring all or a significant part of CorpBanca from considering or proposing that acquisition, even if such third party were prepared to pay consideration with a higher value than the value of the proposed Transactions.

The Transaction Agreement may be terminated in accordance with its terms and the Transactions may not be ~~completed~~completed.

The Transaction Agreement is subject to a number of customary closing conditions which must be fulfilled in order to consummate the Itaú-CorpBanca Merger. Those conditions include: ~~approval of the Transaction Agreement by CorpBanca shareholders, receipt of all required regulatory approvals,~~ absence of orders preventing or suspending consummation of the Transactions, ~~receipt of specified consents,~~ the accuracy of the representations and warranties by both parties, performance by both parties of their covenants and agreements, the execution and delivery by both parties of the Shareholders’ Agreement and certain pledge agreements, and the absence of any circumstance, occurrence or change that has had a material adverse effect on any of the parties. These conditions to the closing of the ~~Transactions~~Itaú-CorpBanca Merger may not be fulfilled and, accordingly, the merger may not be completed. In addition, if the ~~Transactions are~~Itaú-CorpBanca Merger is not completed by ~~the second anniversary from the date of the Transaction Agreement,~~May 2, 2016, either CorpBanca or Itaú Chile may choose not to proceed with the ~~Transactions,~~Itaú-CorpBanca Merger, and any party can unilaterally decide to terminate the Transaction Agreement.

U.S. securities laws do not require us to disclose as much information to investors as a U.S. issuer is required to ~~disclose, and you may receive less information about us than you might otherwise receive from a comparable U.S. company~~disclose.

The corporate disclosure requirements applicable to us may not be equivalent to the requirements applicable to a U.S. company and, as a result, you may receive less information about us than you might otherwise receive in connection with a comparable U.S. company. We are subject to the periodic reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that apply to “foreign private issuers.” The periodic disclosure required of foreign private issuers under the Exchange Act is more limited than the periodic disclosure required of U.S. issuers.

We are required ~~only~~ to file an annual report on Form 20-F, but we are not required to file any quarterly reports. A U.S. registrant must file an annual report on Form 10-K and three quarterly reports on Form 10-Q.

We are required to furnish current reports on Form 6-K, but the information that we must disclose in those reports is governed primarily by Chilean law disclosure requirements and may differ from Form 8-K’s current reporting requirements imposed on a U.S. issuer.

We are not subject to the proxy requirements of Section 14 of the Exchange Act and our officers, directors and principal shareholders are not subject to the short swing insider trading reporting and recovery requirements under Section 16 of the Exchange Act.

Our status as a controlled company and a foreign private issuer exempts us from certain of the corporate governance standards of the New York Stock ~~Exchange, or the NYSE, limiting the protections afforded to investors~~Exchange.

We are a “controlled company” and a “foreign private issuer” within the meaning of the ~~NYSE~~New York Stock Exchange (NYSE) corporate governance ~~standards. Under the NYSE rules, a controlled company is exempt~~standards, which exempts us from certain NYSE corporate governance requirements. In addition, a foreign private issuer may elect to comply with the practice of its home country and not to comply with certain NYSE corporate governance requirements, including the requirements that (i) a majority of our board of directors (directorio), ~~or Board of Directors,~~ consist of independent directors, (ii) a nominating and corporate governance committee be established that is composed entirely of independent directors and has a written charter addressing the committee’s purpose and responsibilities, (iii) a compensation committee be established that is composed entirely of independent directors and has a written charter addressing the committee’s purpose and responsibilities, (iv) an annual performance evaluation of the nominating and corporate governance and compensation committees be undertaken, and (v) the members of the audit committee meet the Exchange Act Rule 10A-3(b)(1) independence requirements. We currently use these exemptions and intend to continue using these exemptions. Accordingly, you will not have the same protections afforded to investors in companies that are subject to all NYSE corporate governance requirements. See “Item 16G. Corporate Governance” for a comparison of the corporate governance standards of the New York Stock Exchange and Chilean practice.

~~Certain actions by our principal shareholder may have an adverse effect on the future market value of our securities and may have interests that differ from those of our other shareholders~~

Our controlling shareholder is Corp Group Banking S.A., which in turn is controlled by Mr. Alvaro Saieh Bendeck. As of December 31, 2014, together with members of his family, Mr. Saieh Bendeck and his family had an indirect ownership of 75.6% of Corp Group Banking S.A. and 49.9% of CorpBanca’s outstanding common shares through such holding company and also through other investment companies such as~~Compañía Inmobiliaria y de Inversiones Saga SpA,~~ ~~or Saga, a company owned by Mr. Saieh Bendeck and his family.~~

Investors may find it difficult to enforce civil liabilities against us or our directors, officers and controlling ~~persons~~persons.

We are organized under the laws of Chile and our principal place of business (domicilio social) is in Santiago, Chile. Most of our directors, officers and controlling persons reside outside of the United States. In addition, all or a substantial portion of our assets are located outside of the United States. As a result, it may be difficult for investors to effect service of process within the United States on such persons or to enforce judgments against them, including in any action based on civil liabilities under the United States federal securities laws. Based on the opinion of our Chilean counsel, there is doubt as to the enforceability against such persons in Chile, whether in original actions or in actions to enforce judgments of U.S. courts, of liabilities based solely on the U.S. federal securities laws. See “Service of Process and Enforcement of Civil Liabilities”.

There may be a lack of liquidity and market for our ADSs and common ~~shares~~shares.

A lack of liquidity in the markets may develop for our ADSs, which would negatively affect the ability of the holders to sell our ADSs or the price at which holders of our ADSs ~~will be able~~desire to sell them. Future trading prices of our ADSs will depend on many factors including, among other things, prevailing interest rates, our operating results and the market for similar securities.

Our common shares underlying the ADSs are listed and traded on the Santiago Stock Exchange and the Chilean Electronic Exchange, although the trading market for the common shares is small by international standards. As of December 31, 2014, we had 340,358,194,234 common shares. Although ADS holders are entitled to withdraw common shares underlying ADSs from the depositary at any time, the Chilean securities markets are substantially smaller, less liquid and more volatile than major securities markets in the United States. As of December 31, 2014, our non-controlling shareholders held approximately 50.1% of our outstanding common shares. A limited trading market in general and our concentrated ownership in particular may impair the ability of an ADS holder to sell in the Chilean market any common shares obtained upon withdrawal of such common shares from our ADR facility in the amount and at the price and time such holder desires, and could increase volatility of the price of the common shares in the form of ADSs.

In addition, according to article 14 of theLey de Mercado de Valores, Law No. 18,045, or the Chilean Securities Market ~~Law,~~Act, the Chilean Superintendency of Securities and Insurance, or SVS, may suspend the offer, quotation or trading of shares of any company listed on the Chilean stock exchanges for up to 30 days if, in its opinion, such suspension is necessary to protect investors or is justified for reasons of public interest. Such suspension may be extended for up to 120 days. If, at the expiration of the extension, the circumstances giving rise to the original suspension have not changed, the SVS will then cancel the relevant listing in the registry of securities. ~~Furthermore, the Santiago Stock Exchange may inquire as to any movement in the price of any securities in excess of 10% and suspend trading in such securities for a day if it is deemed necessary.~~ These and other factors may substantially limit your ability to sell the common shares underlying your ADSs at a price and time at which you wish to do so.

~~The issuance or sale, of a substantial number of our ADSs and common shares, or the perception of a potential issuance or sale, may adversely affect the market price of our ADSs and common shares~~

The market price for our common shares may vary significantly in the event a significant number of our common shares is issued or sold by us, our directors and officers or any other relevant shareholders or in the event there is a perception in the market that we, our directors and officers or a relevant shareholder intends to issue or sell, as the case may be, a significant number of common shares.

TheLey Sobre Sociedades Anónimas, Law No. 18,046 and theReglamento de Sociedades Anónimas, which we refer to collectively as the Chilean Corporations ~~Law,~~Act, and applicable regulations establish that whenever we issue new common shares for cash, we are obligated by law to grant preemptive rights to all of our shareholders (including the depositary on behalf of the holders of ADSs), giving them the right to purchase a sufficient number of shares to maintain their existing ownership percentage. However, we may not be able to offer shares to United States holders of ADSs pursuant to preemptive rights granted to our shareholders in connection with any future issuance of common shares unless a registration statement under the U.S. Securities Act of 1933, as amended, or the Act, is effective with respect to such rights and common shares, or an exemption from the registration requirements of the Act is available.

Our existing shareholders who do not participate in any future preemptive rights offering will suffer an immediate dilution of their percentage equity participation in us. In addition, investors who purchase ADSs or common shares may be subject to dilution of their equity participation in us upon the completion of any future preemptive rights offering. Investors will not know the extent to which they will be diluted until the expiration of any future preemptive rights offering in Chile.

We may also need to seek additional funding in the financial and capital markets in the future. We may resort to public or private offerings of common shares, including common shares in the form of ADSs, or securities convertible or exchangeable into, or that in any other manner allow for the subscription of, common shares, including common shares in the form of ADSs. Any public or private offering of common shares, including common shares in the form of ADSs, or securities convertible or exchangeable into ADSs or common shares, may dilute our existing shareholders’ interests in us or may have an adverse impact on the value of our ADSs and common shares.

You may have fewer and less well defined shareholders’ rights than with shares of a company in the United ~~States~~States.

Our corporate affairs are governed by ourEstatutos Sociales, or By-laws, and the laws of Chile. Under such laws, our shareholders may have fewer or less well-defined rights than they might have as shareholders of a corporation incorporated in a U.S. jurisdiction. For example, under legislation applicable to Chilean banks, our shareholders would not be entitled to appraisal rights in the event of a merger or other business combination undertaken by us.

Holders of ADSs are not entitled to attend shareholders’ meetings, and they may only vote through the ~~depositary~~depositary.

Under Chilean law, a shareholder is required to be registered in our shareholders’ registry at least five business days before a shareholders’ meeting in order to vote at such meeting. A holder of ADSs will not be able to meet this requirement, and accordingly is not entitled to vote at shareholders’ meetings, because the shares underlying the ADSs will be registered in the name of the depositary. While a holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs in accordance with the procedures provided for in the deposit agreement, a holder of ADSs will not be able to vote its shares directly at a shareholders’ meeting or to appoint a proxy to do so. In certain instances, a discretionary proxy may vote our shares underlying the ADSs if a holder of ADSs does not instruct the depositary with respect to voting. In addition, the vote of a holder of ADSs may not be necessary to approve certain matters since under Chilean law, substantially all of the forms of corporate action can be approved with the votes of our controlling shareholder in a duly summoned shareholders’ meeting, Corp Group Banking and other investment companies such as Compañía Inmobiliaria y de Inversiones Saga SpA (or Saga), which are owned by Mr. Saieh Bendeck and his family, except for certain matters requiring supermajority approval according to Chilean law.

U.S. holders of our ADSs or common shares could suffer adverse tax consequences if the Company is characterized as a passive foreign investment company.

If you are a U.S. holder (as defined in “Item 10. Additional Information—E. Taxation—U.S. federal income tax considerations”) and we are a passive foreign investment company, or PFIC, for any taxable year during which you own our ADSs or common shares, you could be subject to adverse U.S. tax consequences. As of the date of this Annual Report, we do not expect to be classified as a PFIC for U.S. federal income tax purposes for our current taxable year or for any taxable year in the foreseeable future. However, the determination of whether we are a PFIC is made on an annual basis and will depend on the composition and nature of our income and the composition, nature and value of our assets from time to time, and therefore no assurance can be provided regarding our PFIC status. You should consult your tax advisor regarding the U.S. federal, state and local and other tax consequences of owning and disposing of the ADSs or common shares in your particular circumstances. See Item 10. Additional Information—E. Taxation—U.S. federal income tax considerations”, for additional information related to the PFIC rules and their application to the bank.

Holders of the ADSs or our common shares could be subject to a 30% U.S. withholding tax.

Pursuant to Sections 1471 through 1474 of the the Internal Revenue Code of 1986, as amended, or the Code, and U.S. Treasury Regulations promulgated thereunder, a 30% withholding tax may be imposed on all or some of the payments on the ADSs or our common stock after December 31, ~~2016~~2018 to holders and non-U.S. financial institutions receiving payments on behalf of holders that, in each case, fail to comply with information reporting, certification and related requirements. This withholding tax, if it applies, could apply to any payment made with respect to the ADSs or our common stock, and ADSs or shares of our common stock held through a non-compliant institution may be subject to withholding even if the holder otherwise would not be subject to withholding. U.S. holders are urged to consult their tax advisers regarding the application of these rules to their ownership of the ADSs or our common stock. See Item 10. Additional Information—E. Taxation—U.S. federal income tax considerations”, for additional information related to these rules and their application to holders of ADSs or our common shares.

Exchange controls and withholding taxes in Chile may limit repatriation of your investment.

Equity investments in Chile by persons who are not Chilean residents are generally subject to various exchange control regulations that govern the repatriation of investments and earnings. The ADSs are governed by an agreement among us, the depositary and the Central Bank of Chile, or the Foreign Investment Agreement. The Foreign Investment Agreement grants the depositary and the holders of the ADRs access to Chile’s Formal Exchange Market, permits the depositary to remit dividends it receives from us to the holders of ADSs and permits the holders of ADSs to repatriate the proceeds of the sale of shares withdrawn from the ADR facility, thereby enabling them to acquire on more favorable terms currencies necessary to repatriate investments in the shares and earnings therefrom.

Pursuant to current Chilean law, the Foreign Investment Agreement may not be amended unilaterally by the Central Bank of Chile, and there are judicial precedents (which are not binding with respect to future judicial decisions) indicating that the Foreign Investment Agreement may not be voided by future legislative changes.

Dividends received by holders of ADSs are paid net of foreign currency exchange fees and fees and expenses of the depositary and are subject to Chilean withholding tax, currently imposed at a rate of 35%, subject to credits in certain cases as described under “Item 10. Additional Information—E. Taxation—Chilean Tax Considerations”. In order to facilitate capital movements from and into Chile and to encourage foreign investment, the Central Bank of Chile eliminated many foreign exchange restrictions and adopted the Compendium of Foreign Exchange Regulations (Compendio de Normas de Cambios Internacionales) effective April 19, 2001.

We cannot assure you that additional Chilean restrictions applicable to the holders of ADRs, the disposition of the shares underlying the ADRs or the repatriation of the proceeds from such disposition or the payment of dividends will not be imposed in the future, nor can we advise as to the duration or impact of such restrictions if imposed. If for any reason, including changes in the Foreign Investment Agreement or Chilean law, the depositary was able to convert Chilean pesos to U.S. dollars, investors would receive dividends or other distributions, if any, in Chilean pesos.

We are a publicly traded company (sociedad anónima) organized under the laws of Chile and licensed by the SBIF to operate as a commercial bank. Our legal and commercial name is CorpBanca. Our principal executive offices are located at Rosario Norte 660, Las Condes, Santiago, Chile. Our telephone number is 56-22-660-8000 and our website is www.CorpBanca.cl. Our agent in the United States is CorpBanca New York Branch, Attention: Fernando Burgos Concha, located at 885 Third Avenue, 33^rd Floor, New York, NY 10022. Information set forth on our website does not constitute a part of this Annual Report. CorpBanca is organized under the laws of Chile and its subsidiaries are organized under the laws of Chile and Colombia. The terms “CorpBanca,” “the bank,” “we,” “us” and “our” in this Annual Report refer to CorpBanca together with its subsidiaries unless otherwise specified.

We are Chile’s oldest operating bank, incorporated as Banco de Concepción by Decree No. 180 of the Chilean Ministry of Finance on October 3, 1871, and legally began operations as a bank on October ~~16th~~16 of the same year. We were founded by a group of residents of the ~~City~~city of Concepción, Chile, led by Aníbal Pinto, who would later become President of Chile. In 1971, Banco de Concepción was transferred to a government agency,Corporación de Fomento de la Producción(the Chilean Corporation for the Development of Production, or CORFO). Also in 1971, Banco de Concepción acquired Banco Francés e Italiano in Chile, which provided for the expansion of Banco de Concepción into Santiago. In 1972 and 1975, the bank acquired Banco de Chillán and Banco de Valdivia, respectively. In November 1975, CORFO sold its shares of the bank to private business persons, who took control of the bank in 1976. In 1980, the name of the bank was changed to Banco Concepción. In 1983, control of Banco Concepción was assumed by the SBIF. The bank remained under the control of the SBIF through 1986, when it was acquired bySociedad Nacional de Minería (the Chilean National Mining Society, or SONAMI). Under SONAMI’s control, Banco Concepción focused on providing financing to small- and medium-sized mining interests, increased its capital and sold a portion of its high-risk portfolio to the Central Bank of Chile. Investors led by Mr. Alvaro Saieh Bendeck purchased a majority interest of Banco Concepción from SONAMI in 1996. For over 20twenty years, Mr. Saieh Bendeck has directed the acquisition, creation and operation of a number of commercial banks, mutual fund companies, insurance companies and other financial entities in Chile and other parts of Latin America.

Following our acquisition by Mr. Alvaro Saieh Bendeck in 1996, we began to take significant steps to improve our credit risk policies, increase operating efficiency and expand our operations. These steps included applying stricter provisioning and charge-off standards to our loan portfolio, cost cutting measures and technological improvements. We also changed our name to CorpBanca, ~~and~~ hired a management team with substantial experience in the Chilean financial services ~~industry. Several~~industry and commenced a period of significant growth fueled by organic expansion and acquisitions. In our ~~senior officers, prior to joining CorpBanca, were employed by Banco Osorno y La Union prior to its merger with Banco Santander-Chile in 1996. In addition,~~first significant transactions, we ~~significantly expanded our operations in 1998 through~~acquired the ~~acquisition~~assets of the consumer loan division of Corfinsa ~~(which was formerly a consumer loan division of Banco Sud Americano, currently Scotiabank Chile)~~ and the finance company Financiera Condell S.A. ~~In November 2002, we completed the largest equity capital-raising transaction~~ in ~~Chile during~~1998. In that year providing us with Ch$111,732 million (approximately US$238.9 million using the exchange rate that was in effect as of December 31, 2002) in capital to help implement our growth strategies. During this time, we also consolidated our information technology systems into a single, integrated platform, Integrated Banking System, or IBS, a central information system that replaced a number of systems, providing us with a single, central electronic database that gives us up-to-date customer information in each of our business lines and calculates net earnings and profitability of each product and client segment.

In June 2012, CorpBanca finalized the acquisition of a 91.9% interest in Banco Santander Colombia S.A (now CorpBanca Colombia), which gave CorpBanca control over CorpBanca Colombia’s 94.9% ownership stake in CorpBanca Investment Valores Colombia S.A., or CIVAL and CorpBanca Colombia’s 94.5% ownership stake in CorpBanca Investment Trust Colombia S.A., or CIT Colombia. In addition, in June 2012, CorpBanca acquired an additional 5.06% interest in CIVAL.

The participation of CorpBanca in CorpBanca Colombia was 66.39% as of December 31, 2013 as compared to 91.93% as of December 31, 2012 following a capital increase by CorpBanca Colombia in 2013 in which CorpBanca participated in a smaller proportion than the remaining shareholders. Finally, CorpBanca’s ownership stake in CorpBanca Colombia decreased to 66.28% in June, 2014 after the merger of this subsidiary with Helm Bank.

On August 6, 2013 we acquired approximately 99.75% of the ordinary shares of Helm Bank (reflecting approximately 87.42% of the ordinary and preferred shares then issued by Helm Bank), a commercial and retail bank in Colombia, including its subsidiaries in Colombia, Panamá, and the ~~Caymán~~Cayman Islands. In the fourth quarter of 2013, we initiated a tender offer to acquire the remaining equity interest in Helm Bank from the remaining minority shareholders. We completed this tender offer in January 2014,

resulting in the acquisition by us of an aggregate amount of 99.78% of Helm Bank. On June 1, 2014, we completed the acquisition process of Helm Bank by merging Helm Bank with and into CorpBanca Colombia, with CorpBanca Colombia being the surviving entity. ~~As we mentioned before, after this process, CorpBanca’s ownership in CorpBanca Colombia decreased to 66.28%.~~

merger, CorpBanca Investment Valores Colombia S.A. assumed the Helm Comisionista de Bolsa S.A. name. The customers and product portfolio of both entities were maintained in the new ~~merge~~merged entity.

Our loan portfolio (excluding loans to banks) has grown at a compounded annual growth rate in nominal terms of 13.4% between December 31, 2012 and December 31, 2015. As of December 31, 2015, according to the SBIF, we were the fourth largest private bank in Chile in terms of the overall size of our loan portfolio (10.4% market share on a consolidated basis and 7.2% market share on an unconsolidated basis only taking into account our operations in Chile, each as reported to the SBIF calculated under local regulatory and accounting principles). As of December 31, 2015, we had total assets of Ch$20,805,351 million, including total loans of Ch$14,628,296 million, total deposits of Ch$8,495,603, shareholders’ equity (excluding net income for the trailing twelve months and provision for mandatory dividend) of Ch$1,105,117 and our return on average shareholders’ equity was 16.2% for the trailing twelve months. For the year ended December 31, 2015, we had net interest income of Ch$620,579 and net income of Ch$238,665.

Our risk management strategy has enabled us to maintain what we believe are solid solvency ratios and risk indicators, notwithstanding high levels of volatility in the financial markets over the past years. Despite of the above, our capital ratios levels decreased from 12.4% to 9.5% between 2014 and 2015, following the approval of the merger with Banco Itaú Chile, considering that our shareholders, together with approving the merger, approved a special dividend distribution in the amount of Ch$239.86 billion that was paid on July 1, 2015. In that specific context, our capital ratios reported on December 2015 are temporary impacted and limited to the period ending with the merger that will occur no later than May 2, 2016. As of December 31, 2015, we had an allowance for loan losses to total loans ratio of 1.2%. We have achieved an average annual return on equity of 14.8% between 2012 and 2015. As of December 31, 2015, we had 127 branches and 417 ATMs in Chile and 177 branches and 180 ATMs in Colombia.

As a result of the steps we have taken since the 1996 acquisition, we have developed a number of significant competitive strengths that we believe will continue to contribute to our growth potential. These include operating efficiencies, improved asset quality, an experienced management team, and a strong technological infrastructure. We believe that these strengths position us well for continued growth in the Chilean and Colombian financial services industries.

~~Our loan portfolio (excluding loans to banks) has grown at a compounded annual growth rate in nominal terms of 27.8% between December 31, 2011~~In this context and December 31, 2014. As of December 31, 2014, according to the SBIF, we were the fourth largest private bank in Chile in terms of the overall size of our loan portfolio (11.3% market share on a consolidated basis and 7.4% market share on an unconsolidated basis only taking into account our operations in Chile, each as reported to the SBIF calculated under local regulatory and accounting principles). As of December 31, 2014, we had total assets of Ch$20,357,027 million, including total loans of Ch$14,029,875 million, total deposits of Ch$8,076,966 million, shareholders’ equity (excluding net income for the trailing twelve months and provision for mandatory dividend) of Ch$1,345,155 million and our return on average shareholders’ equity was 15.7% for the trailing twelve months. For the year ended December 31, 2014, we had net interest income of Ch$630,884 million and net income of Ch$273,701 million.

Our risk management strategy has enabled us to maintain what we believe are solid solvency ratios and risk indicators, notwithstanding recent high levels of volatility in the financial markets. As of December 31, 2014, we had a BIS capital-weighted assets ratio of 12.39% and allowance for loan losses to total loans of 1.0%. We have achieved an average annual return on equity of 14.9% between 2011 and 2014. As of December 31, 2014, we had 127 branches and 414 ATMs in Chile and 171 branches and 180 ATMs in Colombia.

~~Pursuant~~pursuant to CorpBanca’s regionalization strategy, during 2013, CorpBanca conducted a process involving ~~several~~some Latin American and global banks as potential partners in order to explore a strategic alliance to further expand CorpBanca’s reach and capabilities. Consequently, after conducting a comprehensive and competitive process for identifying a merger partner, on January 29, 2014, we and our controlling shareholders entered into ~~the~~a Transaction Agreement with Itaú Chile and its parent entity, Itaú Unibanco, or the Transaction Agreement, whereby we agreed to merge with Itaú ~~Chile, or the Transaction Agreement.~~Chile. As part of that process, we retained two investment banks ~~(Merrill~~(Bank of America Merrill Lynch, Pierce, Fenner & Smith Incorporated and Goldman, Sachs & Co.) as financial advisors in connection with the merger transaction and with the purpose of conducting the process. We and our financial advisors contacted multiple well-known international and Chilean banks who were believed to potentially be interested in a merger. The goal of the process was to obtain the best transaction (in terms of value and certainty of closing) for us and all of our shareholders. After a thorough analysis by us and our financial advisors and Chilean and U.S. legal advisors of the indications of interest received from the different parties and discussions with certain of the parties, we concluded that Itaú Chile offered the best available transaction for us and all our shareholders.

~~The Itaú-CorpBanca Merger was subject to regulatory approvals from certain Brazilian, Colombian, Chilean, Panamanian and United States regulators and also subject to the approval of the~~Our shareholders ~~of CorpBanca and Itaú Chile. As of the date of this annual report, we have received the required regulatory approvals from the Brazilian, Colombian, Panamanian and United States regulators. However,~~approved the Itaú-CorpBanca Merger ~~remains subject to the receipt the of regulatory approval from the SBIF~~in an extraordinary shareholders’ meeting held on June 26, 2015 and ~~the approval of~~ the shareholders of ~~CorpBanca and Itaú Chile. Assuming such approval is granted, and subject to customary closing conditions,~~ Itaú Chile ~~will merge~~gave their consent to the merger in an extraordinary shareholders’ meeting held on June 30, 2015. Additionally, as of the date hereof, we have received all required regulatory approvals in connection with ~~and into CorpBanca, with CorpBanca as~~ the ~~surviving entity. The~~Itaú-CorpBanca Merger. Following the Itaú-CorpBanca Merger, the name of the merged bank will be Itaú~~-CorpBanca.~~-CorpBanca and it will operate under the Itaú brand. We expect the Itaú-CorpBanca Merger to close ~~in the second half of 2015.~~no later than May 2, 2016.

After the closing of the Itaú-CorpBanca Merger, Itaú Unibanco and our current controlling shareholders will beneficially own 33.58% and 33.13% of our outstanding common shares, respectively. ~~Prior~~Pursuant to the Transaction Agreement, Itaú Unibanco committed to inject US$652 million prior to the closing of the Itaú-CorpBanca Merger, ~~Itaú Unibanco will inject US$652 million into Itaú Chile in a capital increase.~~obligation that has been fulfilled. In connection with the Transaction Agreement, our controlling shareholders have agreed that at the closing of the Itaú-CorpBanca Merger, they will enter into the Itaú-CorpBanca Shareholders Agreement, whereby Itaú Unibanco will control the merged bank, or Itaú-CorpBanca, after the consummation of the Itaú-CorpBanca Merger. For a description of the Itaú-CorpBanca Shareholders Agreement and the Transaction Agreement, see Item 10. Additional Information—C. Material Contracts.

Pursuant to the Transaction Agreement, after the closing of the Itaú-CorpBanca Merger, Itaú-CorpBanca will acquire the operations of Itaú Unibanco in Colombia by acquiring the shares of Itaú Colombia at an aggregate price equivalent to their book value of approximately US$~~170~~100 million. Alternatively, if the minority shareholders of CorpBanca Colombia accept the offer to sell their shares in CorpBanca Colombia to Itaú-CorpBanca after the closing of the Itaú-CorpBanca Merger, Itaú-CorpBanca will acquire the operations of Itaú Unibanco through a merger of Itaú Colombia with and into CorpBanca Colombia. To that effect,Furthermore, Itaú-CorpBanca will offer to acquire the CorpBanca Colombia shares held ~~by the minority shareholders of CorpBanca Colombia representing 33.6% of the outstanding shares (including the shares indirectly owned~~ by Inversiones Corp Group Interhold Limitada, or Interhold and Inversiones Gasa Limitada, or Gasa and together with Interhold, CorpGroup Parent, representing ~~12.38%~~12.36 % of CorpBanca Colombia’s outstanding capital stock and that CorpGroup Parent has agreed to sell to Itaú-CorpBanca), through a cash offer in the aggregate amount of US$~~894~~330 million. This offer to purchase for cash implies a valuation of CorpBanca Colombia of approximately US$2.66 billion (which is the same valuation assigned to CorpBanca Colombia for the purpose of determining the valuation of CorpBanca for the Itaú-CorpBanca Merger). If the minority shareholders of CorpBanca Colombia agree to sell their shares, our shareholders could benefit even further from synergies resulting from the merger of CorpBanca Colombia and Itaú Colombia.

The Itaú-CorpBanca Merger is expected to be beneficial to us and all of our shareholders for the following principal strategic reasons:

On an estimated basis Itaú-CorpBanca would be the fourth largest private bank in Chile measured by total loans with a ~~12.6%~~12.3% market share (compared to the ~~7.4%~~7.2% market share we have on a stand-alone basis) as of December 31, ~~2014;~~2015;

we and Itaú Chile have complementary segments, products and lines of business;

the combination of both banks would result in a merged bank with a solid capital base and improved funding profile;

the merger’s potential to generate significant synergies; and

the combination of our and Itaú Unibanco’s operations in Colombia would provide the merged bank with a strong framework to reach a stronger position in the Colombian market.

We believe that the Itaú-CorpBanca Merger represents a significant opportunity to generate synergies that ~~we believe will~~ translate into financial savings and cost reductions in various aspects of our business starting on the third anniversary of the closing of the merger. From a human resources perspective, we expect to capitalize on relevant synergies relating to the optimization of the merged bank’s organizational structures, which we estimate will result in pre-tax savings ~~amounting to~~of approximately US$55 million to US$67 million annually. Furthermore, we estimate that pre-tax savings associated with scalable IT systems will amount to approximately US$16 million to US$19 million annually and other savings derived from an enhanced branch network will be in the range of approximately US$8 million to US$10 million annually. Moreover, we expect reductions in administrative expenses and costs of services by service providers of both Itaú Chile and us in the range of US$15 million to US$18 million pre-tax annually.

In addition, we also expect ~~significant~~ improvements in part of our funding costs compared to the ~~cost~~costs of funding we have today, as well as ~~substantial~~ revenue synergies (which were not considered in the cost synergies described above). Assuming fully phased-in pre-tax synergies of approximately US$100 million per year during the first three years after the consummation of the Itaú-CorpBanca Merger, and excluding one-time integration costs of approximately US$85 million pre tax to be incurred during those first three years, the transaction will be accretive from an earnings per share perspective for all our shareholders from the first year after the closing.

We also expect a significant improvement in the capital position of the merged bank. We will combine our current Tier I Capital of approximately US$~~2.9~~2.1 billion with Itaú Chile’s US$~~1.8~~1.7 billion (including US$652 million capital injection to be ~~made~~completed prior to Closing), providing the merged bank with a considerably larger capital base to support further growth.

From a commercial and strategic perspective, the Itaú-CorpBanca Merger is expected to create a regional ~~leader~~player and constitute a unique opportunity for us to partner with a leading financial institution in the region. Itaú Unibanco is the largest private financial institution in Brazil and a premier franchise in Latin America, which will allow us to benefit from a strong market capitalization in our existing markets while enhancing opportunities for growth in other markets, by leveraging Itaú Unibanco’s global client relationships and enabling the merged bank to expand its banking products’ offering. The enhanced footprint that Itaú-CorpBanca will have in Chile and Colombia is also expected to provide greater scale and resources to grow and compete more effectively in those countries, consolidating our position as the fourth largest private bank in Chile measured by total loans with a combined market share of ~~12.6%~~12.3% as of December 31, ~~2014~~2015 (compared to the ~~7.4%~~7.2% market share that we had as of December 31, ~~2014,~~2015, on an unconsolidated basis in Chile). In addition, this enhanced footprint will function as a platform to expand in the region, in particular into Peru and Central America.

The following table reflects our capital expenditures in the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014:~~2015:

The Ch$~~7,173~~10,069 million ~~decrease~~increase in capital expenditure was mainly due to the ~~decrease~~increase (i) in intangibles (software and computer equipment acquisitions ~~in Colombia~~ and investments in IT projects, ~~in Chile,~~ included under Other) in ~~2014. The reason for that decrease are the investments made the previous year~~2015, and (ii) in ~~those intangibles which are non-recurring expenses.~~land and buildings in Colombia.

Additionally, ~~Capital~~capital divestitures resulted in a gain of Ch$~~415~~461 million ~~as of December 31, 2014~~in 2015 as compared to Ch$415 million in 2014 and Ch$25,164 million in 2013, Ch$1,335 million in 2012 and Ch$17 million in 2011. The change between 2014 and 2013 results from our one-time sale, in the year ended December 31, 2013, of 31 real estate assets owned by CorpBanca in Chile, which comprised properties where CorpBanca’s branches operate.2013. For further details relating to these results and related divestitures, see Notes 14 and 32 of our audited consolidated financial statements included herein.

We believe that our current profitability and competitive advantages are the result of the following strengths:

We believe that our strong position in the Chilean banking market has helped us achieve proportionately higher and more stable profits than our competitors. We are among the market leaders in Chile. According to the SBIF, as of December 31, ~~2014,~~2015, we ranked fourth among private banks in total loans with ~~11.3%~~10.4% market share on a consolidated basis and ~~7.4%~~7.2% market share on an unconsolidated basis (taking into account only our operations in Chile). Additionally, as of the same date, the SBIF ranked us fourth in deposits with ~~11.4%~~10.8% market share on a consolidated basis and fourth on an unconsolidated basis (only taking into account our operations in Chile) with a ~~6.9%~~7.1% market share among private banks in the Chilean market. We have ~~grown~~decreased our market share in total loans by ~~354~~120 basis points during the ~~2011-2014~~2012-2015 period on a consolidated basis. For the three years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, we had net income of Ch$~~119,153~~175,239 million, Ch$~~175,239~~273,701 million and Ch$~~273,701~~238,665 million, respectively.

In ~~2014 CorpBanca obtained very positive results. Both~~2015, both our operations in Chile and Colombia allowed us to reach a net income of Ch$ ~~273,701~~238,665 million, ~~an increase~~a decrease of ~~56.2%~~12.8% compared to ~~2013.~~2014. This ~~increase~~decrease was primarily due to ~~growing commercial activity~~higher provisions for loan losses, a negative currency translation effect between COP$ and Ch$ relating to our Colombian subsidiary and the negative impact of lower inflation in Chile ~~where we have consolidated our business~~during the year on net interest margin and higher tax rates that offset positive commercial customers-driven results in ~~key areas of the Chilean economy, including infrastructure~~Chile and ~~public works, among other reasons,~~synergies already delivered in Colombia, in each case, as further discussed below in “Item 5—Operating and Financial Review and Prospects—A. Operating Results—The Economy—Results of Operations for the Years Ended December 31, ~~2012,~~ 2013, 2014 and ~~2014—~~2015— Net Income”. ~~This has enabled us to achieve~~While 2014 showed stronger results from Colombia, during 2015 our Chilean results exceeded our expectations while Colombia results were below our expectations. Therefore, we achieved sustained growth in Chile over this period, despite facing an increasingly complex domestic and international economic ~~environment,~~environments characterized by lower expectations regarding economic prospects and increasing uncertainty regarding significant expected legal reforms in Chile. The consolidation of our business in the segments of Commercial Banking, Traditional and Private Banking and Lower Income Retail Banking was important ~~to our~~ achieving these results by allowing us to be represented in all segments of the Chilean economy. ~~Additionally,~~Despite lower than expected, our results were helped by the positive results that our subsidiary, CorpBanca Colombia, experienced in 2014. CorpBanca Colombia’s positive results were helped by the completion of the acquisition of Helm Bank in 2013 and the consolidation of Helm Bank into our consolidated financial statements for a full year in 2014. The consolidated2015. CorpBanca Colombia was the sixth largest bank in ~~Colombian~~Colombia as of December 31, ~~2014,~~2015, in terms of total loans, with a significant presence in the segments of companies and high and middle-income individuals.

We believe that the pending Itaú-CorpBanca Merger will provide us a competitive advantage over our competitors. In particular, the merger is expected to provide us with the opportunity to partner with a premier Latin American franchise and give us the ability to leverage Itaú ~~Unibanco´s~~Unibanco’s strong global client relationships. On an estimated basis, Itaú-CorpBanca is expected to be the fourth largest private bank in Chile with US$~~47.2~~41.4 billion in assets, US$~~33.7~~30.5 billion in loans and US$~~27.8~~25.1 billion in total deposits. With this increased size, the institution is expected to be able to exploit various cross-selling opportunities and benefit from additional synergies through: (i) the optimization of cost structures, (ii) savings derived from an enhanced branch network, (iii) savings derived from scalable IT systems, (iv) improvements in the cost of funding and (v) the ability to further leverage Tier I Capital. In addition, we and Itaú Chile have complementary segments, products and lines of business, and the combination of the entities is expected to result in a merged bank with a solid capital base and a strong framework to reach a stronger position in the Colombian market.

We also expect a significant improvement in the capital position of the merged bank. Our current Tier I Capital of approximately US$~~2.9~~2.1 billion, combined with Itaú Chile’s Tier I Capital of approximately US$~~1.8~~1.7 billion (including US$652 million capital injection into CorpBanca to be made prior to closing), will provide the merged bank with a considerably larger capital base to support further growth.

The enhanced footprint that Itaú CorpBanca will have in Chile and Colombia is also expected to provide greater scale and resources to grow and compete more effectively within those countries, further consolidating our position as the fourth largest private bank in Chile measured by total loans with a combined market share of ~~12.6%~~12.3% as of December 31, ~~2014~~2015 compared to the ~~7.4%~~7.2% market share that we had as of December 31, ~~2014~~2015 on an unconsolidated basis.

We believe that our successful acquisition and integration of Banco Santander Colombia and Helm Bank gives us a distinct advantage over our competitors in Chile and Colombia. We are the first and ~~as of the date of this Annual Report,~~until September 30, 2015 we were the only ~~Chilean based~~Chilean-based bank to acquire a universal bank outside Chile. As of today, we remain the only Chilean-based bank to have a footprint in ~~Colombia.~~Colombia through a universal bank. As of December 31, ~~2014,~~2015, according to the Colombian Superintendency of Finance, CorpBanca Colombia was the sixth largest bank in Colombia in terms of total assets and the sixth largest bank in Colombia in terms of total loans.

Our ~~qualified and experienced management teams have played an important role in guiding our growth. Our~~ largest shareholder, Mr. Alvaro Saieh Bendeck ~~who resigned as Chairman of the Board in February 2012,~~ has over 28twenty nine years of experience in the Chilean financial industry. Mr. Saieh Bendeck is committed to continuing his relationship with CorpBanca on matters concerning strategic development, control and new business. Our ~~Chairman~~chairman of the ~~Board~~board of ~~Directors,~~directors, Mr. Jorge Andrés Saieh Guzmán, who became ~~Chairman~~chairman of the ~~Board~~board in February 2012, has over 15sixteen years experience as a member of the ~~Board~~board of ~~Directors~~directors and more than ~~three~~four years experience as ~~First Vice Chairman.~~first vice chairman. Our chief executive officer, or CEO until March 28, 2016, Fernando Massú, has ~~over 31~~more than thirty two years of experience in the banking and financial services ~~industry, and is expected to continue to serve as a member of the Board of Directors after the Itaú-CorpBanca Merger comes into effect.~~industry. Our ~~Chief Financial Officer,~~chief financial officer, or CFO, Eugenio Gigogne, has over 25twenty five years of experience in the banking and financial services industry. The CEO of CorpBanca Colombia, Jaime Munita Valdivieso, has over 21twenty two years of experience in the banking and financial services industry. The members of the board of directors of CorpBanca Colombia also have a wealth of experience in the Colombian market and the banking and financial services industry.

As ~~set forth in~~previously announced by us on November 23, 2015, our management structure is expected to change immediately following the ~~Transaction Agreement, after~~ closing of the Itaú-CorpBanca Merger. In particular, Fernando Massú has communicated his resignation as CEO, ~~of Itaú-CorpBanca~~effective as from March 28, 2016, and is expected to be ~~Boris Buvinic, who has served~~replaced by Milton Maluhy Filho, as soon as the Itaú-CorpBanca Merger is consumated. Mr. Maluhy Filho joined Itaú Unibanco in 2003 and became a partner in 2011. He is currently the ~~banking industry~~CEO of Banco Itaú Chile. Previously, he was CEO of Rede S.A. (Redecard), a card processing subsidiary, and Executive Director at Itaú Unibanco, responsible for ~~over 21 years~~the management of the credit card segment and retail store alliances. Previously, he worked at Itaú BBA, holding leadership positions in ~~Chile.~~ areas such as international, products, operations, treasury, and trading desk. Prior to joining the bank, he worked at J.P. Morgan Crédit Commercial de France (CCF Brasil), and Lloyds TSB.

Although, the current composition of the board of directors of ~~Itaú-CorpBanca~~CorpBanca is expected to materially change given the change of control in favor of Itaú Unibanco once the Itaú-CorpBanca Merger is consumated, Jorge Andrés Saieh Guzmán is expected to retain his position as ~~Chairman~~chairman of the board of directors.

We believe that we have asset quality that is superior to the market average. We have maintained our asset quality, as evidenced by our ratio of non-performing loan to total loans of 1.3% as of December 31, ~~2014,~~2015, and a ratio of charge-offs to average outstanding loans of ~~0.7%~~0.8% as of December 31, ~~2014.~~2015. We believe that we have a risk management system that enables us to identify risks and resolve potential problems on a timely basis and we have made a series of investments to improve the technology we use to manage risk. We have also employed our risk management system and philosophy to identify potential acquisition targets with high asset quality.

We conduct a majority of our business in Chile and a significant amount in Colombia. The Chilean and Colombian economies have generally demonstrated strong macroeconomic fundamentals in terms of Gross Domestic Product, or GDP, per capita ~~with 1.9%~~ and ~~4.6%~~inflation; nevertheless in the past two years, the macroeconomic environment in both countries has shown mild GDP per capita growth (1.2% and ~~low inflation of 4.6% and 3.7%~~1.3% during ~~2014~~2015 in Chile and Colombia, ~~respectively. The~~respectively) and a shift in the inflation trend (4.4% and 6.8% during 2015 in Chile and Colombia, respectively). Still, the Chilean economy is ~~generally~~ recognized as among the most stable in Latin America, as evidenced by its investment grade ratings of AA- by Standard & Poor’s, A+ by Fitch Ratings and Aa3 by Moody’s, the highest ratings in the region. Chile has consistently received investment-grade credit ratings since Standard & Poor’s and Moody’s started coverage in 1992 and 1994, respectively. Standard & Poor’s and Fitch Ratings have an investment grade rating of Colombia of BBB, with a “stable” outlook. Moody’s has an investment grade rating of Colombia of Baa2, with a “stable” outlook.

Our strategy aims at enhancing our market position in the Chilean and Colombian financial services industry in terms of profitability, market share and service coverage. The key elements of our strategy are:

We seek to achieve organic growth by offering competitive products and services to our clients in all of our lines of business in Chile and Colombia. We believe that we have developed a successful wholesale banking business model, which allows us to realize high margins on the cross-selling of our products to our large corporate clients, and we intend to continue to expand our wholesale banking business model to our operations in Colombia. We are focusing our marketing and sales efforts on adapting this business model to apply to our SME clients in Chile and Colombia. Additionally, we believe that our strong franchise in the retail banking segment offers us the potential for significant growth in our loan portfolio, in the low-, mid- and high-income segments. In particular, we believe that there is significant opportunity to expand our wealth management business through the offering of unique investment products and opportunities that we benefit from as a member of CorpGroup. We believe Itaú and CorpBanca ~~will be~~are complementary banking operations given their market ~~positions,~~position, which ~~are expected to~~will enhance our competitive positioning and help enrich our client servicing models. In addition, we seek to identify and pursue growth-enhancing strategic opportunities. We will continue to evaluate additional strategic acquisitions and alliances from time to time, inside and outside of Chile and Colombia.

We intend to capitalize on the growth of the Colombian market given that we believe that our Colombian operation will offer us significant opportunities for growth in the financial services industry. Specifically, we expect to benefit from ~~the low~~comparable lower banking penetration rates and ~~growth~~higher in terms of GDP per capita in Colombia. The ~~Banco Santander~~CorpBanca Colombia Acquisition, the Helm Bank Acquisition and the pending Itaú-CorpBanca Merger demonstrate our commitment to the Colombian financial services market. With respect to our current operations in Colombia, in order to improve operational efficiency and increase market share in key sectors, we intend to implement our commercial and operational standards and best practices of CorpBanca Colombia, while capitalizing on the local management expertise, customer base, services and products. WeWith the Itaú-Corpbanca merger, we expect to achieve a stronger penetration of the wholesale market in Colombia as a result of the consolidation of Corporación Financiera Itaú BBA into our business and also ~~intend to leverage our relationship with the IFC, to benefit our operations in Colombia.~~leveraging retail banking best practices from Itaú Unibanco’s Brazil operations.

We intend to increase our market share and profitability by continuing to cross-sell services and products to our existing clients. We have instituted processes that facilitate our ability to offer additional financial services to our clients, which we believe will increase our revenues from fees for value-added services. In addition, we cross-sell loan products to our checking and savings account customers that are tailored to their individual needs and financial situation. ~~We also believe that~~The Itaú-CorpBanca Merger Will provide further opportunities to offer our ~~relationship with~~clients an improved product menu leveraging the ~~companies that are controlled by Mr. Saieh Bendeck (that constitute CorpGroup) will allow us to add clients~~strong internation position of Itaú Unibanco in both wholesale and ~~increase our profitability in the near future. For example, we install our ATMs and distribute our banking products in CorpGroup~~ retail ~~outlets throughout Chile.~~business.

We are committed to continuing to improve our operating efficiency and profitability. We continue to update our branch operations to allow for an increased level of customer “self-help”. We are also working to increase use of internet and mobile banking by our customers, offering better quality. This strategy has allowed us to win in 2015 for the ~~fourth~~fifth year the Global Finance Award as Best ~~Banking Website~~Digital Bank for Companies in Chile, in recognition of an online service excellence. We have implemented a central information system that provides us with a single, central electronic database that gives us up-to-date customer information in each of our business lines and calculates net earnings and profitability of each transaction, product and client segment savings. Our senior management is focused on implementing technological solutions aimed at identifying means of improving our overall profitability and optimizing our cost structure, such as online time deposits which have an innovative product of great success in Chile. CorpBanca Colombia implemented the “AzulNet”, a portal with new features, faster response time and optimized services for business and retail customers. Through these initiatives, we will continue to strive to improve our efficiency ratio. As of December 31, ~~2014,~~2015, we had a consolidated efficiency ratio of ~~50.5%~~47.3% (defined as operating expenses as a percentage of operating revenue consisting of aggregate of net interest income, fees and income from services (net), net gains from mark-to-market and trading, exchange differences (net) and other operating income (net)). This percentage represented a ~~slight~~ decrease compared to ~~51.1%~~50.5% as of December 31, ~~2013. Nevertheless, when~~2014. When we split CorpBanca and CorpBanca Colombia from a management point of view, the recovery trend in both countries is similar: 47.3% vs. 50.5% in Chile ~~is much stronger: 48.0% vs. 43.6%~~ in 2015 and 2014, and ~~2013,~~47.2% vs. 50.6% in Colombia in 2015 and 2014, respectively. On the other hand, Colombia is still impacted by one-time costs due to the process of integrating Helm Bank into CorpBanca Colombia and the amortization of intangible assets which led to an efficiency ratio of 53.1% in 2014 (61.5% in 2013).

As a result of ~~the recently announced~~our partnership with Itaú Chile, after the consummation of the CorpBanca-Itaú Merger, we will enjoy several benefits, including a greater scale and resources to compete more effectively and more efficiently. The combined entity has the potential to generate significant synergies in Chile which will result in significant efficiency improvements.

The quality of service that we provide to our customers is key to our growth strategy. We not only focus on gaining new customers, but on strengthening and establishing long-term relationships. We believe this is done through a constant effort to identify and understand the needs of our clients and to measure their satisfaction. We continue to develop new processes and technological solutions to provide our clients with excellent customer service. This is a key component of our strategy in order to retain and continue to create value while we finalize the integration of Helm Bank and while we consummate the merger ~~with,~~ and ~~integrate~~integration with Itaú Chile’s ~~operations into our own in the coming years.~~operations.

We continue to seek attractive opportunities to improve our profitability. The Helm Bank Acquisition is a good example of our strategic commitment to maximize the use of our capital to increase our profitability. Although we are constantly evaluating investment opportunities, our current focus is on integrating our Colombian operations and consummating the ~~pending~~ Itaú-CorpBanca Merger.

The following diagram shows our ownership structure as of December 31, ~~2014:~~2015:

~~The following diagram shows our ownership structure as of December 31, 2013:~~

We provide a broad range of commercial and retail banking services to our customers. In addition, we provide financial advisory services, mutual fund management, insurance brokerage and securities brokerage services through our subsidiaries. The following chart sets forth our principal lines of business on a consolidated basis:

The following chart sets forth a breakdown of our revenue by geographic market for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014:~~2015:

~~The following table provides information on the composition of our loan portfolio net of allowances as of December 31, 2012 and 2013:~~

The following table provides information on the composition of our loan portfolio net of allowances as of December 31, 2013 and 2014:


	As of December 31,
	2013		2014		Variation			Variation
	(in million of constant Ch$)							(%)
Commercial loans
Commercial loans		7,625,381		8,236,385		611,004			8.0	%
Foreign trade loans		437,102		484,576		47,474			10.9	%
Current account debtors		27,193		33,335		6,142			22.6	%
Factoring operations		73,280		68,038		(5,242	)		(7.2	)%
Leasing transactions		811,462		866,180		54,718			6.7	%
Other loans and receivables		219,684		305,952		86,268			39.3	%
Subtotals		9,194,102		9,994,466		800,364			8.7	%

Mortgage loans
Letters of credit loans		73,831		64,430		(9,401	)		(12.7	)%
Endorsable mutual mortgage loans		194,788		181,269		(13,519	)		(6.9	)%
Other mutual mortgage loans		1,415,731		1,661,265		245,534			17.3	%
Leasing transactions		260,145		279,326		19,181			7.4	%
Other loans and receivables		37,513		35,506		(2,007	)		(5.4	)%
Subtotal		1,982,008		2,221,796		239,788			12.1	%

Consumer loans
Consumer loans		1,046,179		1,110,843		64,664			6.2	%
Current account debtors		38,938		45,851		6,913			17.8	%
Credit card debtors		226,281		237,605		11,324			5.0	%
Consumer leasing transactions		21,437		19,702		(1,735	)		(8.1	)%
Other loans and receivables		262,697		262,007		(690	)		(0.3	)%
Subtotal		1,595,532		1,676,008		80,476			5.0	%

Total		12,771,642		13,892,270		1,120,628			8.8	%

~~All of the above categories except mortgage loans are combined into “Loans” as described in “Item 4. Information~~

The following table provides information on the ~~Company—Business Overview—Selected Statistical Information—Average Balance Sheets, Income Earned from Interest Earning Assets~~composition of our loan portfolio net of allowances as of December 31, 2014 and ~~Interest Paid on Interest Bearing Liabilities”.~~2015:

We offer a range of products and services to our business clients depending on their size, ownership structure and/or investments under management. Our commercial banking segments are served by two separate business divisions: our Large, Corporate and Real Estate Companies division and our Companies division. For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, our combined total average corporate loans outstanding for our Large, Corporate and Real Estate Companies division and our Companies division amounted to Ch$~~5,390,953 million or 57.2% of total average loans, Ch$~~5,631,462 ~~million~~ or 48.9% of total average loans, Ch$5,569,994 or 40.1% of total average loans and Ch$~~5,569,994 million~~6,026,801 or ~~40.1%~~41.2% of total average loans, respectively.

Large, Corporate and Real Estate Companies. This division serves large economic groups, state-owned and private companies, mining companies, utilities, energy, seaports, airports, public hospitals or any business with annual sales in excess of US$60 million. Our Large, Corporate and Real Estate Companies division focuses on offering clients a broad range of services tailored to fit their specific needs. These services include deposit-taking and lending in both Chilean pesos and foreign currencies, trade financing, general commercial loans, working capital loans, letters of credit, interest rate, foreign exchange derivatives (including foreign exchange options) and cash flow management. This division also serves our real estate and project finance customers. As of December 31, ~~2014,~~

2015, we had ~~1,681~~1,817 Large, Corporate and Real Estate Companies banking customers. We also offer our wholesale banking customers securities brokerage and financial advisory services through our subsidiaries as well as those products and services available through our New York Branch. (For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, our total average corporate loans outstanding for our Large, Corporate and Real Estate Companies division amounted to Ch$~~3,867,956 million or 41% of total average loans, Ch$~~3,843,701 ~~million~~ or 33.4% of total average loans, ~~and~~ Ch$3,791,937 ~~million~~ or 27.3% of total average loans and Ch$3,919,595 or 26.8% of total average loans, respectively).

Companies.Our Companies division provides services to businesses with annual sales of less than US$60 million in Santiago and no set limit throughout the rest of Chile, except for large economic groups and state-owned mining companies, utilities and energy companies, ports, airports and public hospitals, which are serviced by our Large, Corporate and Real Estate Companies division. This division also serves small and medium-sized businesses and provides support to our factoring and leasing clients. Greater detail of each of these business areas are provided in the paragraphs found below.

This division offers our customers a broad range of financial products, including general commercial loans, working capital loans, trade finance, on-lending of financing originated by CORFO, overdraft credit lines, letters of credit, mortgage loans, term deposits, factoring and leasing. As of December 31, ~~2014,~~2015, we had ~~20,232~~20,966 customers in our Companies division.

Within our Companies division, we have a special unit focused on small and medium-size companies, with annual sales between US$200,000 and US$2 million. We are able to offer an array of products through our small and medium-sized business unit, including products (such as lines of credit) backed by governmental warranties created to develop small and medium-sized businesses.

We offer a range of products and services to our individual clients in Chile depending on their monthly income and/or net worth. Our retail banking divisions serve retail customers in Chile across all income levels, from low-income to high income individuals organized in two divisions: Traditional and Private Banking and Banco Condell.

Our Traditional Banking Division is mainly oriented toward individuals in Chile with medium-high income levels (focused on clients with over Ch$1.2 million monthly income). Our traditional banking services are marketed and operated under the CorpBanca brand name. We offer our traditional and private banking clients products in Chile such as checking and deposit accounts, credit lines, credit and debit cards, personal installment loans, mortgage loans, insurance banking and time deposits, among others. In addition, we provide time deposits, mutual funds and savings accounts in Chilean pesos, Euros, UF and U.S. dollars, with a minimum term of seven days and no minimum amount for foreign-currency accounts. As of December 31, 2015, we had 228,674 traditional banking clients, a decrease of 0.9% as compared to December 31, 2014.

Within our Private Banking Division, we provide private banking services to our high income and high net worth ~~customers.~~customers in Chile. We consider high income individuals to be customers with a monthly income in excess of US$10,000 or a net worth in excess of US$600,000. Each client under our private banking or “Private Banking” program is provided with a liaison officer who oversees the client’s entire relationship with us across all product lines. In addition to the products and services we provide to private banking customers, we offer tailored lending products designed to help keep their businesses growing. As of December 31, ~~2014,~~2015, we had ~~9,270~~10,314 Private Banking clients, an increase of ~~10.2%~~11.3% as compared to December 31, ~~2013.~~2014.

For the year ended December 31, ~~2014,~~2015, our Traditional and Private Banking Division had loans with an annual average balance of Ch$~~2,414,564 million~~2,994,312 or ~~17.4%~~20.5% of total average loans (a year-on-year ~~decrease~~increase of ~~0.5%~~24% on an average balance basis).

We offer the following products and services, among others, to our traditional and private banking customers:

Checking and Deposit Accounts. Our main checking account product is our “Integral” checking account, through which customers are provided with a package of services including ATM cards, a credit line, MasterCard and American Express credit cards with credit levels established pursuant to the creditworthiness of the individual, fraud insurance and access to internet and telephone banking. As of December 31, ~~2014,~~2015, we had approximately ~~79,302~~85,874 retail checking accounts, an increase of ~~8.2%~~8.3% as compared to December 31, ~~2013.~~2014. Additionally, this growth in retail checking accounts has been accompanied by an increase in the average balance per account from Ch$~~133,889 million in 2013 to Ch$~~143,035 million in ~~2014.~~2014 to Ch$154,704 million in 2015.

Credit and Debit Cards. We issue MasterCard and American Express credit cards to our individual clients. In addition to traditional cards, we offer cards issued under certain specialized customer loyalty programs and tailor our marketing of credit card services to different groups based on personal income. ~~Annual fees are charged to those customers who do not hold “Integral” accounts with us in order to promote cross-selling and provide full service to customers.~~ As of December 31, ~~2014,~~2015, we had ~~175,694~~

194,305 credit cards issued under the brand name CorpBanca, an increase of ~~12.6%~~10.6% as compared to December 31, ~~2013.~~2014. Our promotions such as discounts on gasoline purchases have allowed us to excel in sales as well as usage-rates of this product. Also, as of December 31, ~~2014~~2015 we had ~~105,536~~101,245 credit cards issued by our subsidiary SMU Corp S.A., or SMU Corp, under the brand name “Unimarc”, a decrease of ~~1.3%~~4.1% as compared to December 31, ~~2013.~~2014.

We also offer debit cards, which can be used for banking transactions at ATMs operating on the Redbanc, S.A., or Redbanc, network, as well as at retailers associated with the Redcompra program. Under this agreement, we have access to ~~7,963~~7,976 ATMs (including Banco del Estado de Chile’s ATMs) in Chile.

Mortgage Loans. We offer two types of mortgages: residential mortgages for the purchase of new and existing homes (including refinancing of existing residential mortgages) and other mortgages, which are loans for other purposes secured by real property owned by the customer. Our residential mortgage loans are UF-denominated and generally have maturities between five and 30thirty years. All of our mortgage loans are primary lien loans and are secured by a real property mortgage. Our lending criteria require minimum credit scores. These loans can be endorsed to a third party. These generally are financed by our general borrowings.

To reduce our exposure to interest rate fluctuations and inflation with respect to our residential mortgage UF-denominated portfolio, a portion of these mortgages are funded through the issuance of letters of credit loans in the Chilean financial market, which bear a real market rate of interest plus a fixed spread over the rate of variation of the UF. The letters of credit loans are exclusively used to finance certain mortgage loans that as of December 31, ~~2014~~2015 represented only ~~2.9%~~2.4% of our mortgage loan portfolio. At the time of approval, these types of mortgage loans cannot be more than 75% of the lower of the purchase price or the appraised value of the mortgaged property or such loan will be classified as a commercial loan. Letters of credit loans are general unsecured obligations, and we are liable for all principal and accrued interest on such letters.

Residential mortgage loans are financed with our general funds, particularly through the issuance of long-term subordinated bonds. In addition, we generally require that the monthly payments on residential mortgage loans do not exceed 25% of the borrower’s household after-tax monthly income.

We continue to increase our marketing efforts relating to our mortgage services. Our market penetration for mortgage products has historically been lower than our overall Chilean market share for all banking products, which as of December 31, ~~2014~~2015 was ~~5.5%~~4.8%. As a result of competitive pricing, product innovation, timely customer service, product knowledge as well as our overall focus on mortgage services, we have been able to achieve our recent results and increase our market share. This is the case as the ratios compare the collateral’s fair value to our loans and receivables portfolio values. Accordingly, our market share for mortgage products was ~~6.3%~~5.7%, ~~5.7%~~5.5% and ~~5.5%~~4.8% as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively. We intend to continue to grow in this market.

Where appropriate, we obtain collateral in respect of our loans and receivables from customers. The collateral normally takes the form of a real estate 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.

Consumer Loans. We offer personal consumer loans for a variety of purposes, including personal loans (with automatic payments deducted from a checking or credit card account and with life, home and/or unemployment insurance); university and post-graduate education loans (including life insurance). Our consumer loans are generally installment loans denominated in Chilean pesos or UF, bear interest at fixed or variable rates and typically have maturities up to five years with the exception of university and post-graduate education loans, which have maturities up to 10ten years.

Our Lower Income Retail Banking Division operates under the trade name Banco Condell and is focused on clients in Chile with an annual income between Ch$2.4 million and Ch$7.2 million. Banco Condell has 56 standalone branches and its own brand identity.

Under the Banco Condell brand, we offer consumer ~~lending, credit card services, mortgage loans,~~ insurance policies and time deposits to the traditionally underserved low-to-middle income segments of the Chilean population. For the year ended December 31, ~~2014,~~2015, our Banco Condell division managed loans with an annual average balance of Ch$~~154,955~~171,186 million, or ~~1.1%~~1.2% of total loans. Improved economic conditions in Chile over the past decade have resulted in an increased demand for consumer credit by low- to middle-income individuals, whom we classify as persons with annual income lower than Ch$~~2.0~~7.0 million. Many of these individuals have not had prior exposure to banking products or services. Through Banco Condell, we focus on developing and marketing products specifically oriented to individuals in this segment of the population while introducing them to the banking sector. We offer, among others, the following products and services to our lower income retail banking-Banco Condell customers:

Consumer Loans. We offer personal loans under the Banco Condell brand, including personal debt consolidation loans. These loans are generally denominated in Chilean pesos, repayable through equal monthly installments and typically have maturities up to five years. Life and unemployment insurance are mandatory in connection with these loans.

~~Credit~~Consumer Insurance policies: We offer life, health, unemployment and credit-related life insurance policies.

Time Deposits and Debit Cards~~. Under the Banco Condell brand, we provide MasterCard credit~~: We offer time deposits and debit cards which require the payment of an annual fee. However, this fee is waived if the card has transactions such as cash advances or purchases on a monthly basis. As of December 31, 2014, we had 1,889 credit cards issued under the brand name Banco Condell.

~~Mortgage Loans~~~~. Under the Banco Condell brand, we offer mortgage loans~~oriented to low income segments for ~~the purchase of new~~savings and ~~existing homes denominated in UF. In addition, we generally require that the monthly payments on a residential mortgage loan not exceed 25% of the borrower’s household after-tax monthly income.~~financial transactions.

Our Treasury and International Division specializes in financial management and is largely responsible for our funding and liquidity as well as management of any gap on our balance sheet. In addition, through our Treasury and International Division we manage proprietary trading functions, market making and distribution and sales of flow and non flow instruments for our corporate

clients. This division is responsible for obtaining foreign currency-denominated credit lines from financial institutions outside of Chile.

As of December 31, ~~2014,~~2015, our outstanding loans from foreign banks were US$~~1,859.3~~1,597.2 million with approximately 52 institutions in the U.S., Canada, Germany, France, ~~Holland,~~Taiwan, England, Japan, Singapore, Switzerland and other countries including in Latin America. The international global risk assets outstanding as of December 31, ~~2014~~2015 were US$~~2,497.6~~2,014.4 million.

CorpBanca Colombia provides a broad range of commercial and retail banking services to its customers in Colombia, operating principally in the cities of Bogotá, Medellín, Cali, Bucaramanga, Cartagena and Barranquilla. As of December 31, ~~2014,~~2015, according to the Colombian Superintendency of Finance, CorpBanca Colombia was the sixth largest bank in Colombia in terms of total assets, the sixth largest bank in Colombia in terms of total loans and the sixth largest bank in Colombia, in terms of total deposits as reported under local regulatory and accounting principles.

As of December 31, ~~2014,~~2015, according to our consolidated financial statements, which have been prepared in accordance with IFRS, CorpBanca Colombia had total assets of COP$~~30,394,392~~33,785,247 million (US$~~12,710~~10,778 million), including total loans of COP$~~20,701,055~~22,984,175 million (US$~~8,657~~7,332 million), total deposits of COP$~~8,836,386~~10,492,939 million (US$~~3,695~~3,347 million) and total shareholders’ equity of COP$~~3,132,773~~3,437,030 million (US$~~1,310~~1,096 million). For the year ended December 31, ~~2014,~~2015, CorpBanca Colombia had total net interest income of COP$~~1,145,648~~1,218,716 million (US$~~479~~389 million) and net income of COP$~~454,850~~307,008 million (US$~~190~~98 million). As of December 31, ~~2014,~~2015, CorpBanca Colombia had ~~171~~177 branches and offices, 180 ATMs and over ~~3,716~~3,707 employees.

Our Federal Branch in the city of New York offers a wide range of credit operations and services to both Chilean and non-Chilean retail ~~customers~~ and ~~large and medium-sized companies.~~corporate customers. Operating with an offshore foreign branch of a Chilean bank is especially attractive to clients ~~abroad~~ as it provides a sense of proximity and it allows us to accompany ~~our customers~~them as they ~~operate~~expand abroad, responding to their needs and ~~improving our services.~~service requirements. Our target market on the liability side consists of ~~retail customers with sophisticated financial needs,~~ medium and large Chilean companies, Latin American companies, ~~and Chilean~~ and Latin American banks without offshore branch offices, among others. Funding has shown continuous growth allowing the branch to fully self-provide its funding needs. Additionally we have a private banking unit which provides sophisticated retail customers checking accounts and other associated services.

Our branch supports the commercial needs of Chilean and Latin American companies doing business overseas. Another important service is the participation in syndicated loans, together with other international institutions, to finance a variety of investment projects. From a financial investment perspective, our New York Branch makes it possible to trade instruments from different issuers with a wide range of risks and returns. The branch also has a private banking unit to provide current accounts and other associated services.

We have made several strategic long-term investments in financial services companies in Chile (each of which are regulated and supervised by either the SBIF or the SVS), which are engaged in activities complementary to our core Chilean banking activities. Through ~~these companies, each of which is our~~ wholly-owned ~~subsidiary,~~subsidiaries, we intend to continue to develop a comprehensive financial services group able to meet the diverse financial needs of our current and potential clients. As of December 31, ~~2014,~~2015, assets of our subsidiaries represented 1.0% of total consolidated, ~~assets~~percentage that remains stable compared to ~~1.1% as of~~ December 31, ~~2013.~~2014. For the year ended December 31, ~~2014,~~2015, net ~~operating~~ income of our subsidiaries represented ~~14.1%~~14.8% of total consolidated ~~operating~~net income compared to ~~13.5%~~14.1% for the year ended December 31, ~~in 2013.~~2014.

The following table sets forth certain financial information with respect to our financial services subsidiaries as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, in millions of Chilean pesos. Amounts relating to inter-company transactions have not been removed for purposes of this table.

3)	On February 25, 2015 CorpBanca acquired 73,609 shares in Recaudaciones y Cobranzas S.A. and CorpBanca Asesorias Financieras S.A. acquired 1 share of the same Company. CorpBanca controls 100% of Recaudaciones y Cobranzas S.A.

Our subsidiary CorpBanca Corredores de Bolsa S.A., or CCB, is a member of the Santiago Stock Exchange and is registered with the SVS as a security broker. CCB’s primary activities are providing brokerage services in equities, fixed income, and foreign currency exchange. CCB’s net income was Ch$~~6,011~~2,206 million, Ch$~~2,206~~1,760 million and Ch$~~1,760~~1,064 million for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively. CCB had assets under custody of Ch$~~359,848~~346,211 million, Ch$~~346,211~~295,612 million and Ch$~~295,612~~278,281 million as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively. For the year ended December 31, ~~2014,~~2015, CCB’s net income decreased by Ch$~~446~~696 million, or ~~20.2%~~39.5%, as compared net income for the year ended December 31, ~~2013.~~2014. This trend was driven by drastically lower trading volumes in the local equity markets, which were at a 9-year low for the year ended December 31, 2015. In order to mitigate adverse market conditions, CCB has refocused marketing efforts and redirect investments to products and businesses where there are investment opportunities for clients.

We incorporated CorpBanca Administradora General de Fondos S.A., or CAGF, to complement banking services offered to individual and corporate clients. CAGF’s current function is to manage mutual fund assets for its clients in fixed and variable income instruments in both the local and foreign markets. For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, CAGF had net income of Ch$~~2,181~~2,603 million, Ch$~~2,603~~4,083 million and Ch$~~4,083~~4,096 million, respectively. CAGF had total assets of Ch$~~4,854~~9,516 million, Ch$~~9,516~~7,561 million and Ch$~~7,561~~8,831 million as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively. As of December 31, ~~2014,~~2015, CAGF managed 2526 mutual funds including fixed income funds and ~~eight~~seven private investment funds and had total assets under management amounting to Ch$~~1,177,598~~1,097,656 million, ~~an increase~~a decrease of Ch$~~303,254~~79,942 million when compared to December 31, ~~2013. The strong growth in assets under management is mainly explained by the growth generated by our~~2014. Our local fixed income ~~funds. We have seen a combination~~funds experienced significant withdrawals during 2015. After several months of ~~both high liquidity~~decreases, local fixed income rates suffered dramatic increases, especially during April and ~~attractive returns in this asset class that has driven our clients~~the last quarter of 2015. These sudden rate increases triggered capital losses which led to ~~invest in our funds~~outflows, mainly from more ~~aggressively. Also, we have been able to strongly increase the intersection between CorpBanca and CAGF clients, adding new participants to our funds.~~conservative investors.

In accordance with our strategy of expanding the breadth of financial services that we offer, our subsidiary CorpBanca Corredores de Seguros S.A., or CCS, offers a full line of insurance products. Many of these products complement the various banking and loan services that we provide, such as unemployment and life insurance in connection with personal loans and insurance in connection with mortgage lending. Through CCS we also provide non credit-related insurance to existing clients and the general public. For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, CCS had net income of Ch$~~5,827~~7,866 million, Ch$~~7,866~~9,012 million and Ch$~~9,012~~8,759 million, respectively. CCS had total assets of Ch$~~8,639~~16,318 million, Ch$~~16,318~~18,006 million and Ch$~~18,006~~20,234 million as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively.

CorpBanca Asesorías Financieras S.A., or CAF, provides a broad range of financial advisory services to a variety of corporations and government agencies, including those services related to debt restructurings, syndicated loans, structured loans, structured investment funds, bilateral grants, mergers and acquisitions, privatizations and company valuations. For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, CAF had net income of Ch$~~7,493~~9,046 million, Ch$~~9,046~~17,311 million and Ch$~~17,311~~16,513 million, respectively. CAF had total assets of Ch$~~10,611~~12,590 million, Ch$~~12,590~~25,166 million and Ch$~~25,166~~22,709 million as of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, respectively.

Corp Legal S.A. was created in 2007 and is regulated by the SBIF. It provides standard legal services to CorpBanca, its subsidiaries and its clients.

On September 25, 2014, CorpBanca acquired from CorpBanca Corredores de Bolsa S.A. the two shares that such company held in CorpBanca Agencia de Valores S.A., therefore the Bank came to hold all of the shares of the agency and, once ten uninterrupted days passed, CorpBanca Agencia de Valores S.A. was dissolved in accordance with article 103 No. 2 of the Chilean Corporations Law.

In 2009, we created SMU Corp, which is a subsidiary of CorpBanca and a joint venture with SMU. SMU is a retail business holding company owned by our largest shareholder, who indirectly owns retail (including Unimarc supermarkets) and wholesale supermarkets, convenience stores and construction oriented home improvement stores.

SMU Corp is a company whose sole and exclusive purpose ~~of issuing,~~is the issuance, operation and management of “Unimarc” credit cards to customers of supermarkets associated with SMU. During the year ended December 31, ~~2014,~~2015, our customers purchased more than US$2418 million in products and services in over ~~312~~297 Unimarc supermarkets with the Unimarc card. These sales volumes represented about ~~0.9%~~0.7% of the sales of Unimarc for the year ended December 31, ~~2014.~~2015. Unimarc credit cards were used for more than ~~650,000~~537,000 transactions during the year ended December 31, ~~2014,~~2015, including over ~~34,000~~27,000 instances of cash advances.

We acquired a 91.9% equity interest in CorpBanca Investment Trust Colombia S.A., or CIT Colombia, in 2012 as part of the acquisition of CorpBanca Colombia. CIT Colombia is a financial services company operating in Colombia that specializes in fund administration and trust and custodial services.

During 2015, CIT Colombia completed the implementation of a new custody software and became the first custodian to be certified with the Colombia Stock Exchange for the automation of processeses for the development of the custodian activities. Consequently, in July, CIT Colombia initiated local custody for a value of assets under custody of COP1.6 trillion. CIT Colombia also entered in new contracts with entities in Panama, Mexico, Brazil and Luxembourg for global custody arrangements.

CorpBanca Securities ~~INC-NY,~~INC., or CSINC, is a broker-dealer in the United States regulated by the ~~SEC. Broker-dealers are required to belong to a self-regulatory organization, or SRO,~~SEC and ~~most of them are members of~~ the Financial Industry Regulatory Authority, or ~~FINRA.~~ FINRA, a self-regulatory organization that all U.S. based broker-dealers are required to join.

Broker-dealers’ transactions can take place ~~only in~~on national stock exchanges ~~eligible~~as well as off exchanges, with the requirement that all transactions performed by a U.S. based broker dealer are subject to ~~become members of~~regulatory oversight by the ~~respective FINRA, which has jurisdiction only over its members~~SEC and ~~its associated persons.~~FINRA.

As of December ~~2014,~~2015, CSINC ~~was~~has been approved by the SEC ~~the State of New York~~ and ~~the~~ FINRA, and ~~was~~is awaiting approval by the Federal Reserve (FED) to ~~give CSINC approval to~~ begin operations.

Helm Corredor de Seguros S.A. is a Colombian corporation (sociedad anónima), which acts as an insurance broker. It has its main domicile in the city of Bogota, D.C., Colombia, and is regulated by the Colombian Superintendency of Finance.

Helm Comisionista de Bolsa S.A. ~~(previously~~(previously known as CorpBanca Investment Valores Colombia S.A.)

Helm Comisionista de Bolsa S.A. is a licensed securities broker dealer operating in Colombia that is the result of the consolidation of two previously separate subsidiaries of CorpBanca Colombia, CorpBanca Investment Valores Colombia S.A. and Helm Comisionista de Bolsa S.A.

As part of the continuing consolidation of the operations of Helm Bank with and into CorpBanca Colombia, on September 1, 2014, we completed the merger of Helm Comisionista de Bolsa S.A. with and into CorpBanca Investment Valores Colombia S.A., with CorpBanca Investment Valores Colombia S.A. being the surviving company. Immediately upon consummation of the merger, CorpBanca Investment Valores Colombia S.A. assumed the Helm Comisionista de Bolsa S.A. name.

Helm Comisionista de Bolsa S.A. offers and maintains the complete portfolio of products and services previously offered separately by each of Helm Comisionista de Bolsa S.A. and CorpBanca Investment Valores Colombia S.A. Additionally, Helm Comisionista de Bolsa S.A. continue to serve the clients that were historically served separately by each of Helm Comisionista de Bolsa S.A. and CorpBanca Investment Valores Colombia S.A.

Helm Fiduciaria S.A., is a Colombian corporation (sociedad anónima), which is engaged in trust portfolio management, including investment trust management, administration, security and real estate trusts. It has its main domicile in the city of Bogota, D.C., Colombia and is regulated by the Colombian Superintendency of Finance.

Helm Bank S.A. (Panamá) is a Panamanian corporation (sociedad anónima), which acts as a banking firm. It has its main domicile in the city of Panamá, Panamá and is regulated by the Panamanian Banking Superintendency.

Helm Casa de Valores S.A. (Panamá) is a Panamanian corporation (sociedad anónima), which acts as a brokerage firm. It has its main domicile in the city of Panamá, Panamá and is regulated by the Panamanian Superintendency of Securities Market.

~~Distribution Channels, Electronic Banking~~On February 25, 2015, CorpBanca directly and ~~Technology~~indirectly acquired all of the issued and outstanding shares of Recaudaciones y Cobranzas S.A, or Instacob, a debt collection company providing court and out-of-court collections services for loans. As a result of this transaction, Instacob became a wholly owned subsidiary of ours.

On a consolidated basis, CorpBanca is not dependent on sources or availability of raw materials.

Our distribution network in Chile provides integrated financial services and products to our customers through several diverse channels, including ATMs, branches, internet banking and telephone banking. As of December 31, ~~2014,~~2015, we operated 127 branch offices in Chile and New York, which includes 7071 branches operating as CorpBanca, 56 branches operating as Banco Condell, our consumer finance division and our New York ~~Branch, our consumer finance division.~~Branch. In addition, as of December 31, ~~2014,~~2015, we owned and operated ~~414~~417 ATMs in Chile, and our customers have access to ~~7,963~~7,976 ATMs (including Banco del Estado de Chile’s ATMs) in Chile through our agreement

with Redbanc. We utilize a number of different sales channels including account executives, telemarketing and the internet to attract new clients. Our branch system serves as the main distribution network for our full range of products and services.

We offer internet banking to our customers 24 hours a day through our password-protected internet site, www.CorpBanca.cl. Our internet site offers a broad range of services, including up-to-date information on balances in deposit, checking, loan, credit card and other accounts and transactional capabilities such as transfers and payments. As of December 31, ~~2014,~~2015, we had ~~173,399~~166,224 customers with activated internet passwords in Chile, allowing them to access our internet banking services. We are a member of the Sociedad Interbancaria de Transferencias Electrónicas S.A., an organization that facilitates electronic banking transactions on behalf of our customers as well as other Chilean banks. We also provide our customers with access to a 24-hour phone-banking call center that grants them access to account information and allows them to effect certain payments by telephone.

We have developed a specialized internet-based service designed to facilitate and optimize the financial management of our commercial customers. This service, which we market under the name “Cash Management”, includes services such as payroll support and payments to suppliers.

We have entered into several service and lease agreements with IBM de Chile S.A.C., which provides us with the computer hardware and network build-out that we use in our headquarters and branch offices. We have also entered into a software consulting and development agreement with Datapro, Inc., which provides consulting and development for the IBS.

CorpBanca Colombia’s distribution channel provides integrated financial services and products to its customers in Colombia through several diverse channels, including ATMs, branches, internet banking and telephone banking. ~~On June 1, 2014, we completed the merger of Helm Bank with and into CorpBanca Colombia, with CorpBanca Colombia surviving.~~

As of December 31, ~~2014,~~2015, CorpBanca Colombia operated ~~170~~177 branch offices in Colombia and one branch in Panama and owned and operated 180 ATMs in Colombia, ~~but providing~~and also provided its customers with access to ~~180~~14,133 additional ATMs through Colombia’s other financial institutions. CorpBanca Colombia utilizes a number of different sales channels including account executives, telemarketing and the internet to attract new clients. CorpBanca Colombia’s branch system serves as the main distribution network for its full range of products and services.

CorpBanca Colombia offers internet banking to its customers 24 hours a day through its password-protected internet site, www.bancoCorpBanca.com.co CorpBanca Colombia’s internet site offers a broad range of services, including up-to-date information on balances in deposit, checking, loan, credit card and other accounts and transactional capabilities such as transfers and payments. As of December 31, ~~2014,~~2015, CorpBanca Colombia had ~~95,386~~104,460 customers with activated internet passwords who used the electronic banking service at least once during the month, allowing them to access CorpBanca Colombia’s internet banking services. CorpBanca Colombia is a member of ACH Colombia S.A. and Cenit S.A., an organization that facilitates electronic banking transactions on behalf of its customers as well as other Colombian banks. CorpBanca Colombia also provides its customers with access to a 24-hour phone-banking call center that grants them access to account information and allows them to effect certain payments by telephone.

CorpBanca Colombia has developed a specialized internet-based ~~service~~product designed to facilitate and optimize the financial management of its commercial customers. This ~~service,~~product, which CorpBanca Colombia markets under the name “AzulNet”, includes services such as payroll support and payments to suppliers. Additionally, CorpBanca Colombia has decided to implement the IBS platform ~~IBS provided by DataPro (this platform~~(which has been implemented and is ~~also implemented~~used by CorpBanca both in Chile and in New York)~~. CorpBanca Colombia~~ and is currently in the ~~structuring~~implementation phase of the project.

CorpBanca is not dependent on patents or licenses, nor is it substantially dependent on any industrial, commercial or financial contracts (including contracts with customers or suppliers).

Description of the Chilean Financial System. The Chilean financial services market consists of a variety of largely distinct sectors. The most significant sector, commercial banking, includes 2324 privately-owned banks and one state-owned bank, Banco del Estado de Chile (which operates within the same legal and regulatory framework as the private sector banks). The private sector banks include those that are Chilean-owned, i.e., controlled by a Chilean entity, as well as a number of foreign-owned banks which are operated in Chile but controlled by a foreign entity. In ~~2014, five~~2015, 5 private sector banks along with the state-owned bank together

accounted for ~~79.21%~~78.3% of all outstanding loans by Chilean financial institutions as of December 31, ~~2014:~~2015: Banco Santander-Chile ~~(18.18%~~(18.9%), Banco de Chile ~~(17.4%~~(18.3%), Banco de Crédito e Inversiones, or BCI ~~(12.5%~~(12.9%), CorpBanca ~~(11.3%~~(7.2%), Banco Bilbao Vizcaya Argentaria, Chile ~~(6.6%~~(6.7%) and Banco del Estado de Chile ~~(13.2%~~(14.3%). All market share statistics in this paragraph are presented as reported to the SBIF calculated under local regulatory and accounting principles on ~~a consolidated~~an unconsolidated basis.

Financial System Evolution in Chile. The Chilean banking system has experienced a consolidation process in the past decades with mergers and acquisitions of banking entities in line with global trends. Currently, the largest Chilean bank in terms of loans outstanding is Banco Santander-Chile.

Following rapid consolidation among Chilean banks commencing in the late 1990s through today, the market has become characterized by fewer larger players. Our principal competitors in Chile are BCI, Banco de Chile and Banco Santander-Chile. As compared to other Chilean banks, we believe our position in the Chilean banking industry has enabled us to compete with international banks seeking to provide loans to companies operating in Chile, especially since we are able to offer alternative sources of financing. We also believe that the close relationships we have developed with our SME customers over the years provide us with a competitive advantage.

Commercial banks, such as us, face increasing competition from other financial intermediaries who can provide larger companies with access to the capital markets as an alternative to bank loans. The enactment of the Capital Markets Reform Bill (Reforma al Mercado de Capitales) in 2001 has made it more tax-advantageous and easier for companies to issue commercial paper in Chile, adding an additional financing alternative. To the extent permitted by the Chilean General Banking ~~Law,~~Act, we seek to maintain a competitive position in this respect through the investment banking activities of our subsidiary CAF.

We face competition in our mortgage and consumer loans businesses from insurance companies, which have been permitted to grant mortgage loans. We believe that, in addition to the other banks that operate in Chile, our main competitors in the credit card business are department stores and other non-banking businesses involved in the issuance of private-label credit cards. We intend to remain competitive in the mortgage loan services and credit card markets through product innovation.

We also experience competition from banks that provide international private banking services such as JPMorgan Chase, Deutsche Bank and BNP Paribas, among others. We believe our main competitive advantage in our Private Banking segment has been our ability to provide our customers with tailored lending products and responses to their needs as soon as possible. Our lower income retail banking segment, Banco Condell, competes with consumer divisions of other banks such as Banefe, CrediChile, among others, as well as certain consumer credit providers, including department stores. We believe the main competitive advantage of our Banco Condell brand is our ability to provide responses as soon as possible, know our customers’ needs and provide a fair price structure.

Description of the Colombian Financial System. In recent years, the Colombian banking system has been undergoing a period of consolidation given the series of mergers and acquisitions that have taken place within the sector, including the ~~Banco Santander~~CorpBanca Colombia Acquisition and the Helm Bank Acquisition. ~~More specifically, several~~Several mergers and acquisitions ~~took~~have taken place insince 2008, ~~including~~including: (a) the ~~Royal Bank of Scotland (RBS) purchase~~acquisition of the Colombian arm of ABN Amro Bank ~~and General Electric (GE) Money’s~~by the Royal Bank of Scotland; (b) the acquisition of a ~~49.7%~~majority stake in ~~Colpatria. However, in May~~Banco Colpatria by Scotiabank; (c) the acquisition of ~~2010, Group Colpatria repurchased this 49.7% stake and in October of 2011, Canadian Scotiabank purchased Colpatria’s 51% for US$1.0 billion. Also, in 2010, Banco de Bogotá acquired~~ BAC-Credomatic, which has operations in several countries in Central America, ~~for a reported purchase price of approximately US$184 million.~~

~~In 2013 several new players entered the Colombian financial system, including the start of operations of Ripley Compañía~~by Banco de Financiamiento S.A. and Banco Santander de Negocios Colombia S.A.. Additionally, the year was marked by several mergers and acquisitions, including Scotiabank Colombia S.A.’s acquisition of Banco Colpatria Multibanca Colpatria S.A. and the conversion of Banco Cooperativo Coopcentral from an upper-rank cooperative organization to a commercial bank. The trend toward mergers and acquisitions continued throughout 2014 with two mergers occurring within the banking sector. First, in June 2014, we completedBogotá; (d) the merger of Helm Bank S.A. with and into Banco CorpBanca Colombia S.A.,; and ~~in October~~(e) the merger of Banco GNB Colombia S.A. (previously known as Banco HSBC Colombia S.A.) ~~merged~~ with and into Banco GNB Sudameris S.A. During 2015 three new banks commenced operations in Colombia: Banco Mundo Mujer S.A. (previously operating as a microloan originator); Banco Multibank and Banco Compartir S.A., which converted its licenses from financing companies to banks.

~~In 2014 we completed our acquisition of 100% of the equity interest in Helm Bank and completed the merger of Helm Bank with and into CorpBanca Colombia.~~

Additionally, pursuant to the Transaction Agreement with Itaú Unibanco, ~~we agreed that~~ Itaú-CorpBanca will ~~following the closing of the pending Itaú-CorpBanca Merger,~~ acquire the operations of Itaú Unibanco in Colombia by acquiring the shares of Itaú Colombia at an aggregate price equivalent to their book value of approximately US$~~170 million.~~

As of December 31, ~~2014,~~2015, and according to the Colombian Superintendency of Finance, the principal participants in the Colombian financial system were the Central Bank of Colombia, 2225 commercial banks ~~(12~~(14 domestic private banks, 910 foreign banks, and one domestic state-owned bank), five finance corporations and 2116 financing companies ~~(six~~(four leasing companies and 1512 traditional financing companies). In addition, trust companies, cooperatives, insurance companies, insurance brokerage firms, bonded warehouse, special state-owned institutions, pension and severance pay funds also participate in the Colombian financial system.

The Financial Reform Act of 2009 (Law 1328 passed July 15, 2009) ~~also made important advances towards a multi-banking framework. This new legislation~~ authorized banks to provide merger and acquisition loans and allowed them to conduct financial leasing operations. As a result, some competitors have absorbed their financial leasing subsidiaries into their banking franchises and some leasing companies are in the process of becoming banks.

Financial System Evolution in Colombia during ~~2013~~2014 and ~~2014~~2015. ~~According to the Colombian Superintendency of Finance, 2014~~ 2015 was a ~~positive~~challenging year for the Colombian financial services ~~sector led by positive performance~~sector. The global decline in oil prices, depreciation of the Colombian ~~economy~~peso and ~~financial markets for most~~increased inflation rate of 6.77% which surpassed the ~~year. In particular, from January through September 2014, local financial assets showed a positive behavior driven by the rebalancing~~Central Bank’s target range of ~~JP Morgan’s portfolio in Colombia’s public debt. However this positive trend started to change in October as a result of an increase~~2%-4% created headwinds that hindered growth in the ~~international perception~~country. Additionally, pursuant to Law 1314 of ~~global risk, which resulted in a perception~~2009, as of ~~lower growth prospects in emerging markets and in Europe than previously expected. This change was reflected in Colombia~~January 2015 the financial sector implemented IFRS, however under local regulation those standards for non-consolidated financial statements do not fully comply with those issued by ~~a decrease~~IASB especially on the ~~stock exchange markets and a depreciation of the currency which was intensified by the decrease in global oil prices.~~loan loss provisions chapter. Bank lending increased ~~15.6%~~15.3% and deposits grew ~~10.1%~~11.6% as of December ~~2014,~~2015, compared to ~~the 13.8% and 15.5% respectively for~~ December ~~2013.~~2014. In terms of Monetary Policy in Colombia, the year began with a reference interest rate of ~~3.25%~~4.5% that increased to ~~4.5%~~5.75% in the ~~first nine~~last four months with the objective of ~~preventing future vulnerabilities. The rate remained stable at 4.5% from September through December 2014.~~aligning inflation expectations.

The demand for business loans granted by banks increased by ~~16.7%~~11.8% for ~~2014,~~2015, compared to ~~12.7% for 2013.~~a 16.7% increase in 2014. Consumer loans granted by banks grew by 11.6% in 2015, compared to a 13.1% increase observed in 2014 ~~compared to~~and 11.7% ~~observed~~registered in ~~2013 and 17.6% registered on 2012.~~2013. There was ~~a slow down~~an increase on the dynamics of ~~Mortgage~~mortgage and ~~Small Business~~small business loans, with increases of ~~18.1%~~46.6% and ~~9.0%~~20.8%, respectively, for 2015 relative to 2014. With the implementation of IFRS, Colombian banks reclassified home leasing operations as mortgages as of January 2015 from their prior classification as business loans for 2014 and prior years. Nevertheless, the implementation of IFRS had additional effects on the loan portfolio growth, loans to employees and operational leasing operations were included in the loan portfolio line as of January 2015.

The Colombian banking system’s level of past-due loans as a percentage of the system’s total loan portfolio increased to ~~2.9%~~3.0% for December ~~2014,~~2015, after the ~~2.8%~~2.9% registered on December ~~2013.~~2014. In addition, coverage, measured as the ratio of allowances to past-due loans, ended ~~2014~~2015 at ~~150.5%~~145.8%, compared to ~~160.6%~~150.5% at the end of ~~2013.~~2014.

During ~~2014,~~2015, lending gained some weight in the Colombian banks system’s structure. Net loans increased from ~~64.6%~~65.7% of total assets at the end of ~~2013~~2014 to ~~65.7%~~66.7% at the end of ~~2014, while~~2015, and investment portfolio and derivatives, as a percentage of total assets, ~~decreased~~increased from 19.1% at the end of ~~2013~~2014 to ~~18.0%~~19.4% at the end of ~~2014.~~2015.

As of December 31, ~~2014,~~2015, the Colombian financial sector recorded COP$~~480,861,121~~547,286,169 million in total assets, representing a ~~12.4%~~13.8% increase as of December 31, ~~2013.~~2014. The Colombian financial system’s total composition of assets shows banks with a market share of ~~91.9%~~91.8%, followed by financing companies with ~~5.5%~~5.2%, financial corporations with ~~2.0%~~2.5% and financial cooperatives with 0.5%.

As of December 31, ~~2014,~~2015, the capital adequacy ratio (tier 1 + tier 2) for credit institutions was ~~15.6%~~15.15% (including banks, finance corporations and financing companies), ~~increasing~~decreasing by 4045 bps when compared to December 31, ~~2013,~~2014, and which is well above the minimum legal requirement of 9%.

As of December 31, ~~2013~~2014 and ~~2014,~~2015, our gross consolidated loan portfolio was Ch$~~13,085,663~~14,211,349 million and Ch$~~14,211,349~~14,810,136 million, respectively, as reported to the SBIF calculated under local regulatory and accounting principles. This placed us as the fourth

largest financial institution among private Chilean banks and fifth place among all banks operating in Chile. Our gross consolidated loan portfolio represented ~~11.3%~~10.4% of the market for loans in the Chilean financial system (comprising all commercial banks) as of December 31, ~~2014.~~2015. During the period from ~~2011~~2012 to ~~2014,~~2015, the compounded annual growth rate of our loan portfolio, excluding interbank loans in nominal terms, was ~~27.8%~~13.4% as compared to an increase of ~~12.7%~~12.1% in the average market loan portfolio.

The following table sets forth the aggregate outstanding loans for us and the five other private sector banks with the largest market shares in Chile as of December 31 ~~2012,~~ 2013, 2014 and ~~2014,~~2015, based on information as reported to the SBIF calculated under local regulatory and accounting principles:

~~Operating~~Our income tax expenses increased ~~by 42.8%~~ to Ch$~~362,145~~96,677 million for the year ended December 31, ~~2013~~2015 from Ch$~~253,644~~82,853 million for the year ended December 31, ~~2012. The~~2014. This 16.7% increase is due to higher tax rates, both in ~~operating expenses was primarily the result~~Chile and Colombia, and depreciation of the ~~consolidation of CorpBanca Colombia for a full year and~~Colombian Peso relative to the ~~consolidation of Helm Bank since August 6, 2013, including an increase~~Chilean Peso that resulted in ~~administration expenses by 57.3%, personnel’s salaries expenses by 36.7% and increase in depreciation and amortization by 133.7%.~~

CorpBanca accounted for 7.5% of the increase in consolidated operating expenses for the year ended December 31, 2013, CorpBanca Colombia accounted for 47.1% of the increase and Helm Bank accounted for 45.4% of the increase. Of the operating expenses attributable tohigher tax expense from our ~~operations~~investment in Colombia -which despite of been made in COP$, for tax purposes is considered to be in US dollars³- this impact is offset by the ~~year ended December 31, 2013, 8.7% were attributable to costs incurred in connection with~~gains on the ~~Helm Bank Acquisition and amortization of goodwill for Helm Bank.~~

Our income tax expenses increased to Ch$82,853 million for the year ended December 31, 2014 from Ch$64,491 million for the year ended December 31, 2013. This increase was mainly due to a combination of our higher income before taxes that we experienced in 2014, combined with a higher tax rate in Chile. As described below and in “Item 4—Information on the Company—B. Business Overview—Recent Regulatory Developments in Chile”, the governments of Chile and Colombia have recently adopted changes to their respective tax codes that will result in an increased marginal tax rate for us and certain of our subsidiaries.

In September 2014, Chile enacted Law 20,780, which amended the Chilean income tax system, increasing rates applicable to us, in order to increase revenue collection to finance education reform, to make the Chilean tax system more equitable, and to simplify the previously existing tax system. As described in “Item 4—Information on the Company—B. Business Overview—Recent Regulatory Developments in Chile”, one of the most important changes introduced by the Tax Reform is the creation of two separate taxation systems in the Chilean Income Tax Law: the attributed income system and the semi-integrated system. The law also provides gradual increases in the corporate income tax rate from 20% in 2013 to 21% in 2014, 22.5% in 2015, 24% in 2016, and 25% or 27% in 2018 depending on the tax system chosen by the applicable taxpayer. The impact of this rate change on deferred taxes resulted in a credit to our profit for the year ended December 31, 2014 of Ch$369 million.

Additionally, in December 2014, Colombia enacted an amendment to the Colombian tax laws through Law 1,739. Among the more important modifications introduced by the Colombian tax reform was a gradual and transitory increase in income taxes between 2015 and 2018. This modification will raise the income tax rate in Colombia from 34%, in effect for fiscal year 2014, to 39%

in 2015, 40% in 2016, 42% in 2017 and 43% in 2018. It will return to 34% in 2019 and beyond. The impact of this rate change on deferred taxes resulted in a charge to profit for the period of Ch$890 million (credit of Ch$82 million in 2013 for the effect of the tax reform in Law 1,607 on December 26, 2012).

Our income tax expenses increased to Ch$64,491 million for the year ended December 31, 2013 from Ch$22,913 million for the year ended December 31, 2012. For the year ended December 31, 2013, income before income tax increased by 68.7% compared to December 31, 2012 which, along with a higher effective tax rate due to the variation of the exchange rate and its impact in the valuation of the investment in Colombia impacted the provision of income tax.

The following discussion should be read in conjunction with our consolidated financial statements, especially Note 4 regarding segment information included elsewhere in this annual report. The following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from these discussed in forward-looking statements as a result of various factors, including those set in forth in “Cautionary Statement Regarding Forward-Looking Statements” and “Item 3D. Risk Factors”.

We have seven segments: (i) Large, Corporate and Real Estate Companies, (ii) Companies, (iii) Traditional and Private Banking, (iv) Lower Income Retail Banking, (v) Treasury and International, (vi) Financial Services Offered Through Subsidiaries and (vii) Colombia. Below we describe our seven primary operating segments:

Large, Corporate and Real Estate Companies includes companies that belong to major economic groups, specific industries, and companies with sales over ~~US$~~U.S.$60 million; this segment also includes real estate companies and financial institutions.

Companies include a full range of financial products and services for companies with annual sales under ~~US$~~U.S.$60 million. Leasing and factoring have been included in this business segment.

Traditional and Private Banking offers, among other products, checking accounts, consumer loans, credit cards and mortgage loans to middle and upper income customers.

Lower Income Retail Banking, which corresponds to Banco Condell, offers, among other products, consumer loans, credit cards and mortgage loans to the traditionally underserved low-to-middle income segments.

Treasury and International primarily includes treasury activities such as financial management, funding and liquidity, as well as international businesses.

Financial Services Offered Through Subsidiaries includes services rendered by our subsidiaries, which include insurance brokerage, financial advisory service, asset management and securities brokerage.

Our Colombia segment includes services rendered by CorpBanca Colombia, Helm Bank and their respective subsidiaries, primarily within the Colombian domestic market, including commercial and retail banking services.

The following table presents summary information related to each of our operating segments for the year ended December 31, 2015:

The following table presents summary information related to each of our operating segments for the year ended December 31, 2014:

The following table presents summary information related to each of our reportable segments for the year ended December 31, 2013:

~~The following table presents summary information related to each of our reportable segments for the year ended December 31, 2012:~~

We maintain adequate liquidity to ensure our ability to honor withdrawals of deposits, make repayments of other liabilities at maturity, extend loans and meet our own working capital requirements.

Our liquidity depends upon our (i) capital, (ii) reserves and (iii) financial investments, including investments in government securities and other financial institutions. To cover any liquidity shortfalls and to enhance our liquidity position, we ~~have established lines of credit with foreign and domestic banks and also~~ have access to Central Bank of Chile and Central Bank of Colombia borrowings. As part of our liquidity policy, we maintain at all times a diversified portfolio of cash and highly liquid assets that can be quickly monetized, including financial investments and Central Bank of Chile, Central Bank of Colombia and government securities.

While we continue to use all available sources of funding as we believe appropriate, we continue to emphasize the increase of deposits from retail customers as a source of liquidity. These deposits include checking accounts that do not bear interest and accordingly represent an inexpensive source of funding for us. In addition, to the extent that these types of deposits represent a larger percentage of our funding base, the percentage represented by time deposits is expected to decrease and, accordingly, we believe that the risks to our business of uncertainties relating to rolling over deposits will be diminished.

In 2008, we placed ~~UF5,330,000~~UF 5,330,000 in 25 year subordinated bonds to be used to finance our normal business activities and improve our balance sheet structure. In 2009, we placed ~~UF4,670,000~~UF 4,670,000 in 26 year subordinated bonds with the same purpose, taking advantage of favorable market conditions. On July 29, 2010, we entered into a US$167.5 million senior unsecured syndicated term loan facility with BNP Paribas, as Administrative Agent, and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank Aktiengesellschaft, Standard Chartered Bank and Wells Fargo Securities, LLC, as lead arrangers and book-runners. The proceeds of the loan were used mainly to fund our lending activities and for general corporate purposes. On July 24, 2012, we entered into a US$199.4 million two-year senior unsecured term syndicated loan facility with Standard Chartered Bank, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC, as mandated lead arrangers and book-runners. This loan was amended and ~~restated~~restated:(a) on July 22, 2014 to increase the size of the loan to US$490 million and to extend the term of the loan by an additional fifteen months ~~period.~~period; and(b) on September 23, 2015 to reflect a partial prepayment and to extend the term of the loan. Consequently, the loan, for an aggregate principal amount of up to US$ 315,000,000 shall mature on the earlier of April 14, 2017 or the date of any acceleration of maturity pursuant to the terms of the same.

On January 16, 2013, we issued US$800 million aggregate principal amount of 3.125% Senior Notes due 2018 in an SEC registered transaction. The net proceeds of this offering were used for general corporate purposes, primarily to fund lending activities. On September 22, 2014, we issued US$750 million aggregate principal amount of 3.875% Senior Notes due 2019, in accordance with

Rule 144A and Regulation S under the U.S. Securities Act of 1933. The net proceeds of this offering were used for general corporate purposes, primarily to fund lending activities.

In addition, ~~we believe that we have a distinct advantage with respect to managing~~ our ~~funding costs because our Colombian operations are not dependent on CorpBanca for their funding needs. Our~~ Colombian operations manage their own funding costs in Colombian pesos, ~~and, as~~therefore they are not dependant on CorpBanca for their funding needs. As of December 31, ~~2014,~~2015, we do not foresee a need to separately fund our Colombian operations with our capital, reserves or financial investments, including investments in government securities and other financial institutions. On December 31, 2013 CorpBanca Colombia entered into a Note Purchase Agreement with the IFC, a member of the World Bank Group, and the IFC Capitalization (Subordinated Debt) Fund L.P., a Delaware Limited Partnership managed by the IFC Asset Management Company (collectively, the IFC Parties), by means of which CorpBanca Colombia issued bonds for an amount of US$170,000,000.00 at a variable interest rate, maturing on March 15, 2024, and the IFC Parties subscribed and paid in full the purchase price for the bonds pursuant to the terms and conditions stated therein. In addition, on March 2, 2016 CorpBanca Colombia placed bonds in the Colombian local market totaling COP$300,000 million at a tenor of 2 years and 1 year.

On August 1, 2010, we implemented a local bond program for a maximum amount of UF150 million at any time outstanding. Under the local bond program, we are able to issue two types of bonds: (i) senior bonds, up to an aggregate amount of UF100 million, which can be divided into 28 series of senior bonds (from AB to AZ and from BA to BC), with a maturity ranging from 3 to 30 years and an interest rate of 3%, and (ii) subordinated bonds, up to an aggregate amount of UF50 million, which can be divided into 16 series (from BD to BS), with a maturity ranging from 20 to 35 years and an interest rate of 4%. For all the series of bonds that could be issued under the local bond program, the amortization of capital will be made in full at maturity. The principal owed in connection with outstanding senior and subordinated bonds is due at maturity and interest relating thereto is due bi-annually. The objective of the local bond program is to structure the future issuances of debt of CorpBanca in a way that provides for diverse alternatives of placements in order to manage efficiently its outstanding indebtedness. Under the local bond program, in 2010, we issued bonds in the Chilean market in the amount of UF18.8 million (Ch$403,364 million). In addition, on October 29, 2012 and October 31, 2012, we issued subordinated bonds in the local Chilean market in the aggregate amount of UF6.6 million (Ch$149,779 million).

In line with our goal of asset and liability management and growth, ~~in June 2014,~~during 2015 we issued Ch$46,720 million and UF ~~3,000,000 (Ch$74,771 million)~~5.05 million in senior local bonds. As of December 31, ~~2014~~2015 we had outstanding senior bonds in the aggregate amount of Ch$~~2,078,358~~2,215,515 million (UF ~~84.39~~86.45 million) and outstanding subordinated bonds in the aggregate amount of Ch$~~902,248~~932,278 million (UF ~~36.64~~36.38 million).

On December 1, 2015 we entered into a bilateral credit facility for an aggregate principal amount of US$50,000,000 with Bank of America, N.A. The credit agreement is subject to terms and conditions common for this type of transactions and shall mature on December 4, 2017.

As of December 31, ~~2014,~~2015, we maintained a reserve in liquid assets (mainly consisting of securities issued by the Central Bank of Chile and Treasury Bonds of Colombia’s Government) of Ch$~~3,042,722~~ 2,270,160 million. In addition, as of December 31, ~~2014,~~2015, we maintained sufficient levels of cash and deposits in banks in the amount of Ch$~~1,169,178~~1,004,757 million to satisfy our wholesale short-term obligations in the amount of Ch$~~1,873,802~~1,404,312 million.

We continue to actively manage our liquidity through several committees that meet on a daily and weekly basis, as applicable. Our financial risk department also coordinates with management to forecast and manage complex liquidity scenarios.

As of December 31, ~~2014,~~2015, our shareholder’s equity was in excess of that required by Chilean regulatory requirements. According to the Chilean General Banking ~~Law,~~Act, a bank must have an effective net equity of at least 8% of its risk-weighted assets, net of required reserves, and paid-in capital and reserves (basic capital) of at least 3% of its total assets, net of required reserves. For these purposes, the effective net equity of a bank is the sum of (i) a bank’s basic capital, (ii) subordinated bonds issued by a bank valued at their placement price up to 50% of its net capital base; provided that the value of the bonds shall decrease 20% for each year that lapses during the period commencing six years prior to their maturity and (iii) voluntary loan loss allowances in an amount up to 1.25% of a bank’s risk-weighted assets (if a bank has goodwill, this value would be required to be deducted from the calculation of the effective net equity). The calculation of the effective net equity does not include the capital contributions made to subsidiaries of a bank and is made on a consolidated basis rather than on an unconsolidated basis. For purposes of weighing the risk of a bank’s assets, the Chilean General Banking ~~Law~~Act considers the following five different categories of assets based on the nature of the issuer, availability of funds, nature of the assets and existence of collateral securing such assets:

Basic capital is defined as a bank’s paid-in capital and reserves and is similar to Tier 1 capital, except that it generally does not include net income for the period. However, beginning in 2008, the SBIF allowed banks to include net income for the period as basic capital, net of a 30% deduction for minimum dividends accrued.

Under the Chilean General Banking ~~Law,~~Act, a bank must have a minimum paid-in capital and reserves of ~~UF800,000~~UF 800,000 (Ch$~~19,701.7~~20,503.3 million or US$~~32.5~~28.9 million as of December 31, ~~2014)~~2015). However, a bank may begin its operations with 50% of such amount, provided that it has a total capital ratio (defined as effective net equity as a percentage of risk weighted assets) of not less than 12%. When such bank’s paid-in capital reaches UF600,000 (Ch$~~14,776~~15,377.5 million or US$~~24.4~~21.7 million as of December 31, ~~2014)~~2015) the total capital ratio required is reduced to 10%.

The following table sets forth our minimum capital requirements of the dates indicated. See Note 35 to our consolidated financial statements included herein for a description of the minimum capital requirements.

Our capital ratios levels decreased from 12.4% to 9.5% between 2014 and 2015, following the approval of the merger with Banco Itaú Chile, considering that our shareholders, together with approving the merger, approved a special dividend distribution in the amount of Ch$239.86 billion that was paid on July 1, 2015.

The following tables set forth our investment in Chilean government and corporate securities and certain other financial investments as of December 31, ~~2012,~~ 2013, 2014 and ~~2014.~~2015. Financial investments are classified at the time of the purchase, based on management’s intentions, as either trading or investment instruments, the latter of which are categorized as available-for-sale or held to maturity.

   As of December 31,
   2012    2013    2014
   (in millions of Ch$)
Held to maturity

Chilean Central Bank and Government securities

Chilean Central Bank securities
   —         —         —
Chilean Treasury bonds
   —         —         —
Other Government securities
   —         —         —
Other financial instruments

Promissory notes related to deposits in local banks
   —         —         —
Chilean mortgage finance bonds
   —         —         —
Chilean financial institutions bonds
   —         —         —
Other local investments
   10,099       8,632       7,175
Financial instruments issued abroad

Foreign governments and central bank instruments
   74,259       93,750       —
Other foreign investment
   20,619       135,140       183,502
Impairment provisions
   —         —         —
Unquoted securities in active markets

Chilean corporate bonds
   —         —         —
Other investments
   —         —         —
Impairment provision
   —         —         —






Total
104,977    237,522    190,677


	As of December 31,
	2013		2014		2015
	(in million of Ch$)
Held-for-trading:

Chilean Central Bank and Government securities:
Chilean Central Bank bonds		746		—		—
Chilean Central Bank notes		—		—		—
Other Chilean Central Bank and Government securities		9,106		4,822		6,210

Other National institution securities:
Bonds		—		2,548		2,340
Notes		18,582		13,320		34,404
Other securities		133		15		551

Foreign institution securities:
Bonds		326,141		542,791		192,427
Notes		—		—		—
Other securities		64,443		110,615		57,875

Mutual funds investments
Funds managed by related organizations		12,495		11,787		28,092
Funds managed by third parties		37		—		2,000

Total		431,683		685,898		323,899


	As of December 31,
	2013		2014		2015
	(in million of Ch$)
Available-for-sale

Chilean Central Bank and Government securities
Chilean Central Bank securities		334,718		276,487		527,444
Chilean Treasury bonds		847		253,999		258,306
Other Government securities		21,769		6,442		859

Other financial instruments
Promissory notes related to deposits in local banks		78,712		54,162		65,778
Chilean mortgage finance bonds		313		203		92
Chilean financial institutions bonds		17,985		—		29,329
Other local investments		136,623		51,526		53,630

Financial instruments issued abroad
Foreign governments and central bank instruments		212,280		434,392		629,297
Other foreign investments		85,840		79,685		360,053
Impairment provision		—		—		—

Unquoted securities in active markets
Chilean corporate bonds		—		—		—
Other investments		—		—		—
Impairment provisions		—		—		—

Total		889,087		1,156,896		1,924,788



	As of December 31,
	2013		2014		2015
	(in million of Ch$)
Held to maturity

Chilean Central Bank and Government securities
Chilean Central Bank securities		—		—		—
Chilean Treasury bonds		—		—		—
Other Government securities		—		—		—

Other financial instruments
Promissory notes related to deposits in local banks		—		—		—
Chilean mortgage finance bonds		—		—		—
Chilean financial institutions bonds		—		—		—
Other local investments		8,632		7,175		5,543

Financial instruments issued abroad
Foreign governments and central bank instruments		93,750		—		—
Other foreign investment		135,140		183,502		164,648
Impairment provisions		—		—		—
Unquoted securities in active markets
Chilean corporate bonds		—		—		—
Other investments		—		—		—
Impairment provision		—		—		—

Total		237,522		190,677		170,191

We do not hold securities of any issuer other than the Central Bank of Chile and the Colombian Ministry of Finance, in which the aggregate book value of which the investment exceeds 10% of our shareholders’ equity as of the end of the latest reported period.

The following table shows interest rates per annum applicable to certain Central Bank of Chile bonds as of the dates indicated:

Our total financial instruments as a percentage of total assets increased to ~~10%~~11.6% as of December 31, ~~2014~~2015 due to a ~~16.4%~~2.2% increase in total assets as a consequence of an increase of our loan portfolio.

The following table sets forth an analysis of our investments, by time remaining to maturity and the weighted average nominal rates of such investments, as of December 31, ~~2014:~~2015:

As part of our liquidity policy, we maintain at all times a diversified portfolio of highly liquid assets that can be quickly monetized, including cash, financial investments and Central Bank of Chile and other government securities.

The majority of our funding is derived from deposits and other borrowings from the public. In the opinion of management, our working capital is sufficient for our present needs.

We seek to ensure that, even under adverse ~~conditions,~~conditions; we have access to the funds necessary to cover client needs, maturing liabilities and capital requirements. Liquidity risk arises in the general funding for our financing, trading and investment activities. It includes the risk of unexpected increases in the cost of funding the portfolio of assets at appropriate maturities and rates, the risk of being unable to liquidate a position in a timely manner at a reasonable price and the risk that we will be required to repay liabilities earlier than anticipated. See “Item 11. Quantitative and Qualitative Disclosures about Financial Risk” for more detailed information relating to the methods we employ in managing our liquidity.

The tables below set forth information about our main sources and uses of cash. No legal or economic restrictions exist on the ability of our Chilean subsidiaries to transfer funds to us in the form of loans or cash dividends as long as these subsidiaries abide by the regulations in the Chilean Corporations Law regarding loans to related parties, and dividend payments. In addition, no legal or economic restrictions exist on the ability of our Colombian subsidiaries to transfer funds to us in the form of cash dividends. However, in the case of CorpBanca Colombia, for the following four to five years there is a possibility that shareholders may vote to capitalize such dividends in order to meet ~~new~~current capital adequacy requirements following Basel standards, as they did in respect of 2013 dividends, 2014 dividends and ~~2014~~2015 dividends. CorpBanca Colombia may also transfer funds to CorpBanca in the form of loans, as long as they abide by the regulations in the Colombian financial law regarding loans to related parties. Colombian subsidiaries (other than CorpBanca Colombia) may not transfer funds to us in the form of loans, due to their limited corporate purpose.

Our net cash provided by operating activities for the year ended December 31, ~~2014 decreased by 248.4%~~2015 increased from ~~Ch$227,949 million in 2013 to~~ Ch$(338,361) million in ~~2014.~~2014 to Ch$239,571 million in 2015. This ~~decrease~~increase in net cash provided by operating activities was mainly due to (i) the ~~increase~~negative impact of the slowdown both in the Chilean and the Colombian economies in our loan ~~portfolio in 2014,~~portfolio; and (ii) the ~~one-time effect~~depreciation of the ~~sale of part of our loan portfolio in 2013. Part of~~Chilean peso against the ~~increase in loan activity in 2014 was funded with time deposits which also increased when compared to 2013.~~US dollar.

Our net cash used in investing activities decreased from Ch$~~277,704~~(106,810) million for the year ended December 31, ~~2013~~2014 to Ch$~~106,810~~(33, 845) million for the year ended December 31, ~~2014.~~2015. This ~~61.5%~~68.3% decrease in net cash used in investing activities was mainly due to the fact that in ~~2013~~2015 we ~~acquired Helm Bank which is a non recurrent~~did not made any significant investment.

Our net cash provided by financing activities decreased from Ch$~~649,518 million for the year ended December 31, 2013 to Ch$~~515,980 million for the year ended December 31, ~~2014.~~2014 to Ch$(410,813) million for the year ended December 31, 2015. This ~~20.6%~~179.6% decrease in net cash provided by financing activities was mainly due to due to the fact that ~~in 2013~~ we issued ~~capital~~less debt due to the economic slowdown, which isresult was partly offset by an increase in (i) our dividend payment due to the distribution of a ~~non recurrent investment.~~special dividend in July 1^st, 2015 and (ii) bonds redemption.

The following table sets forth our average month-end balance of our liabilities for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, in each case together with the related average nominal interest rates paid thereon.

Our current funding strategy is to continue to utilize all sources of funding in accordance with their cost, their availability and our general asset and liability management strategy. Our most important source of funding is our time deposits. Time deposits represented ~~55.6%~~53.8% of our average interest bearing liabilities for the year ended December 31, ~~2014.~~2015. We continue to place special emphasis on increasing deposits from retail customers, which consist primarily of checking accounts that do not bear interest and accordingly represent an inexpensive source of funding for us. Our total checking accounts and other demand liabilities increased by ~~14.59%~~12.05% as of December 31, ~~2014~~2015 compared to December 31, ~~2013.~~2014. To the extent that these types of deposits represent a larger percentage of our funding base, the percentage represented by time deposits is expected to decrease and, accordingly, we believe that the materiality to our business of uncertainties relating to rolling over deposits will be diminished. We also intend to continue to broaden our customer deposit base, to emphasize core deposit funding and to fund our mortgage loans with the matched funding available through the issuance of letters of credit loans in Chile’s domestic capital markets. Management believes that broadening our deposit base by increasing the number of account holders has created a more stable funding source.

We do not currently conduct any significant research and development activities.

Our net interest income for the year ended December 31, ~~2014 increased~~2015 decreased to Ch$~~630,884~~620,579 million, or by ~~75.7%~~(1.6)%, when compared to the year ended December 31, ~~2013.~~2014. Generally, our net interest income is positively affected by an inflationary environment to the extent that our average UF-denominated assets exceed our average UF-denominated liabilities, while our net interest income is negatively affected by inflation in any period in which our average UF-denominated liabilities exceed our average UF-denominated assets. Currently, we have more UF-denominated assets than liabilities.

Our operating income depends significantly on our net interest income. For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, net interest income over total operating income represented ~~57.5%~~65.1%, ~~65.1%~~63.6% and ~~63.6%~~63.0%, respectively. Changes in market interest rates may affect the interest rates earned on our interest-earning assets and the interest rates paid on our interest bearing liabilities, which may result in a further reduction in our net interest income.

Consolidation in the market, which can result in the creation of larger and stronger competitors, may adversely affect our financial condition and results of operations by decreasing the net interest margins we are able to generate and increasing our costs of operation. In addition, we expect to continue to face competition from non-banking financial entities such as department stores, leasing, factoring and automobile finance companies, mutual funds, pension funds and insurance companies.

The following are the most important trends, uncertainties and events that are reasonably likely to affect us or that would cause the financial information disclosed herein not to be indicative of our future operating results or financial condition:

~~uncertainties relating~~Higher levels of uncertainty related to the expectation of a possible global economic ~~growth expectations~~recession and ~~interest rate cycles, especially in the United States, where the high current account deficit~~a higher than expected slowdown of ~~the U.S. economy~~Chinese economic activity, which may translate into an upward adjustment of risk premium and higher global interest rates;

In this context, the upturn in the Chilean and/or Colombian economies could be weaker than expected. Higher than ~~expected~~anticipated unemployment rates and lower economic growth could increase provision expenses and decrease our rate of loan growth in the future; and

~~uncertainties~~Finally, uncertainty relating to the ~~passing and/or~~ implementation of the ~~Tax~~Labor Reform do not allow us to predict its effects. ~~If enacted, these effects are unclear and cannot be calculated at this time; however, there could be an adverse impact on our results of operations.~~

Also see “Item 5. Operating and Financial Review and Prospects—A. Operating Results”.

We are party to transactions with off-balance-sheet risk in the normal course of our business. These transactions expose us to credit risk in addition to amounts recognized in the consolidated financial statements and include commitments to extend

credit. These commitments include contractual arrangements to which an unconsolidated entity is a party, under which CorpBanca has:

Any obligation under certain guarantee contracts;

A retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such ~~items as guarantees, open~~assets;

Any obligation under certain derivative instruments;

Any obligation under a material variable interest held by CorpBanca in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to CorpBanca, or engages in leasing, hedging or research and ~~unused letters of credit, overdrafts and credit card lines of credit.~~

development services CorpBanca.

Such commitments are agreements to lend money to a customer at a future date, subject to the customer’s compliance with contractual terms. Since a substantial portion of these commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent our actual future cash requirements. The aggregate amount outstanding of these commitments was Ch$~~5,399,509~~5,582,672 million as of December 31, ~~2014.~~2015.

Contingent loans ~~consist~~are those operations or commitments in which the bank assumes a credit risk upon committing itself to third parties, before the occurrence of a future event, to make a payment or disbursement that must be recovered from its clients.

The bank keeps a record of the following balances related to commitments or to liabilities of its own line of business in memorandum accounts: collateral and guarantees, ~~granted by us in Ch$, UF and~~confirmed foreign ~~currencies (principally US$), as well as open and unused~~ letters of ~~credit.~~ credit, letters of credit, bank guarantees, cleared lines of credit, other credit commitments and other contingencies.

The total amount of contingent loans held off balance sheet as of December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 was ~~Ch$2,396,064 million,~~ Ch$2,751,929 million, Ch$3,191,435 million and Ch$~~3,191,435~~3,285,411 million, respectively. Contingent loans are considered in the calculation of risk weighted assets and capital requirements as well as for credit risk reserve ~~requirements (see~~requirements.

See Note 1 “General Information and summary of significant accounting policies” and Note 22 “Contingencies, commitments and responsibilities” to our audited consolidated financial statements included ~~herein).~~herein for a better understanding and analysis of the figures held off sheet balance.

We use the same credit policies in making commitments to extend credit as we do for granting loans. In the opinion of our management, our outstanding off-balance sheet commitments do not represent an unusual credit risk.

Traditional financial instruments which meet the definition of a “derivative”, such as forwards in foreign currency, UF, interest rate futures currency and interest rate swaps, currency and interest rate options and others, are initially recognized on the balance sheet at their fair value. Fair value is obtained from market quotes, discounted cash flow models and option valuation models, as applicable. For further details of fair value, see Note 8 of our consolidated financial statements included herein.

In terms of outstanding exposure to credit risk, the true measure of risk from derivative transactions is the marked-to-market value of the contracts at a point in time (i.e., the cost to replace the contract at the current market rates should the counterparty default prior to the settlement). For most derivative transactions, the notional principal amount does not change hands; it is simply an amount that is used as a reference upon which to calculate payments.

In addition to the scheduled maturities of our contractual obligations which are included under “—Liquidity and Capital Resources—Sources of Liquidity” above, as of December 31, ~~2014,~~2015, we also had other commercial commitments which mainly consist of open and unused letters of credit, together with guarantees granted by us in Ch$, UF and foreign currencies (principally U.S. dollars). We expect most of these commitments to expire unused.

The following table includes both the accrued interest and the interest expense projected over time of each contractual obligation as of December 31, ~~2014.~~2015. For variable rate debt and interest rate swaps and other derivatives, where applicable, the interest

rates upon which we based our contractual obligations going forward are based on the applicable forward curves. For any cross-currency swaps or other derivatives as applicable, the foreign currency exchange rate used was spot.

We are managed by our CEO (Gerente General) under the direction of our ~~Board~~board of ~~Directors,~~directors, which, in accordance with the Company’s ~~By-laws,~~by-laws, consists of nine directors and two alternates who are elected at our annual shareholders’ meetings. Pursuant to the provisions of our bylaws, members of the ~~Board~~board of ~~Directors~~directors are generally elected for three-year terms. ~~Most~~All of ~~our current~~the members of the ~~Board~~board of ~~Directors~~directors were elected on March ~~7, 2013. The date of expiration~~11, 2016 for a three-year period; however, it has been announced that after the consummation of the ~~current term~~Itaú-CorpBanca Merger, a new board of ~~office of each of our current members of~~directors will be appointed for the ~~Board of Directors is March 2016.~~merged bank. Cumulative voting is permitted for the election of directors. The ~~Board~~board of ~~Directors~~directors may appoint replacements to fill any vacancies that occur during periods between elections. Our principal executive officers are appointed by the ~~Board~~board of ~~Directors~~directors and the CEO and hold their offices at the discretion of the ~~Board~~board of ~~Directors~~directors and the CEO. Scheduled meetings of the ~~Board~~board of ~~Directors~~directors are held monthly. Extraordinary meetings can be held when called in one of three ways: by the Chairman of the ~~Board~~board of ~~Directors,~~directors, by one or more directors with the prior approval of the Chairman of the ~~Board~~board of ~~Directors,~~directors, or by five directors. None of the members of our ~~Board~~board of ~~Directors~~directors has a contract or agreement which entitles any director to any benefits upon termination of employment with us.

Jorge ~~André~~Andrés Saieh ~~Guzmá~~Guzmán became a ~~Director~~director on August 25, 1998. On February 2, 2012, Mr. Saieh Guzmán became the ~~Chairman~~chairman of our ~~Board~~board of ~~Directors.~~directors. Mr. Saieh Guzmán also serves as the ~~Chairman~~chairman of the board of directors for Consorcio Periodístico de Chile S.A., and Vice Chairman of both CorpGroup and the Chilean National Press Association. In addition, Mr. Saieh Guzmán is a member of the board of Corp Group Inmobiliaria S.A and the Vidadeporte foundation. Mr. Saieh Guzmán has also served as the ~~Vice Chairman~~vice chairman of the board of AFP Protección, as a member of the board of AFP Provida, as member of the board of the Chilean National Press Association and as a member of the board of our former affiliate, CorpBanca Venezuela. Mr. Saieh Guzmán also serves similar positions on a variety of different boards. Mr. Saieh Guzmán received a B.A. in Business and Administration and graduated from the Universidad Gabriela Mistral. Mr. Saieh Guzmán holds a

Masters in Economics and a Masters in Business and Administration from the University of Chicago. Alvaro Saieh Bendeck is the father of Mr. Saieh Guzmán.

Fernando Aguad Dagach became a ~~Director~~director on June 18, 1996. On February 2, 2012, Mr. Aguad became our ~~First Vice Chairman.~~first vice chairman. Mr. Aguad has previously held similar positions in a variety of institutions including Interbank Perú, Banco Osorno y La Unión and Canal de Televisión La Red. Mr. Aguad is an investor in financial institutions.

Jorge Selume Zaror became a ~~Director~~director on May 23, 2001. On February 2, 2012, Mr. Selume became our ~~Second Vice Chairman.~~second vice chairman. Mr. Selume also serves as director of the board, among others, for ~~Vidacorp S.A.,~~Clinica Indisa, ~~Clinic, and the~~Andean Region – Laureate International, Universidad Andrés Bello, Universidad Las ~~Americas.~~Americas, Instituto Profesional AIEP and Blanco y Negro. Prior to this, Mr. Selume was a director on the board of directors of Banco Osorno y La Unión, a director of the government budget office of Chile, ~~Chairman~~chairman of our former affiliate CorpBanca Venezuela and the CEO of CorpBanca between 1996 and 2001. Mr. Selume received a B.A. in Business and Administration and graduated from the Universidad de Chile. Mr. Selume holds a Masters in Economics from the University of Chicago.

~~Rafael Guilisati Gana~~Ana Beatriz Holuigue Barros became ~~Director~~a director on ~~February 2, 2012. Mr. Guilisati has~~October 20, 2015 after serving as alternate director since August 30, 2011. Previously, Ms. Holuigue was a professor at the Universidad Católica de Chile and served ~~as vice-chairman of the board of directors and a member of the audit committee of Viña Concha y Toro since September 1998. He also~~various roles at COPEC. She currently serves on the board of directors of ~~Viñedos Emiliana~~Grupo de Radios Dial, Copesa and Supermercados de Chile S.A., ~~Frutícola Viconto and Viña Almaviva,~~ among others. Mr. Guilisati previously served as President of the Asociación de Viñas de Chile from 1986 to 2003 as well as Vice President of the Sociedad de Fomento Fabril (2005-2011) and President of the Confederación de la Producción y del Comercio (2008-2010). HeShe received a B.A. in ~~History~~Business and Administration from the Universidad Católica de Chile.

Julio Barriga Silva became a ~~Director~~director on April 30, 2014. Mr. Barriga previously served on the board of directors of CorpBanca between 1997 and 2012. Mr. Barriga has also served as the ~~Chairman~~chairman of the ~~Board~~board of Banco Santiago and the ~~Chief Executive Officer~~chief executive officer of Banco del Estado de Chile. Mr. Barriga is an agricultural engineer and an agricultural economist from the Universidad de Chile.

Francisco Mobarec Asfura became a ~~Director~~director on February 2, 2012. Previously, Mr. Mobarec served as a manager in the area of corporate risk at Banco del Estado de Chile (2003-2006) and Banco Santiago (1999-2002), among others. Mr. Mobarec has previously served as a member of the audit committee of Central Bank of Chile (2007-2012) and a member of the board of directors of Factoring Penta S.A. (2008-2010), Empresa de Correos de Chile (2003-2006) and Banco Estado S.A. Administradora General de Fondos (2003-2006), among others. He received a B.A. in Business and Administration and an Accounting Auditor degree from the Universidad de Chile.

Gustavo Arriagada Morales became a ~~Director~~director on September 28, 2010. Mr. Arriagada previously served as the Superintendent of Banks and Financial Institutions. He received a B.A. in Business and Administration and an Economics degree from the Universidad de Chile.

José Luis Mardones Santander became a ~~Director~~director on March 12, 2013. Mr. Mardones currently serves as partner and director of Mardones y Marshall Consultores, independent director of CorpBanca ~~and Metro de Valparaíso (Merval),~~ and as director of Corporación CESCO (Centro de Estudios del Cobre y la Minería). Mr. Mardones previously served as chairman of the board of directors of Banco del Estado de Chile, chairman of Empresa Portuaria Valparaíso, director of Metro Regional de Valparaíso (Merval), Empresa Portuaria San Vicente, Instituto de Estudios Bancarios and of certain affiliates of Enami and Colbún. He received a civil engineering degree from the Universidad de Chile as well as a Masters in Law and Diplomacy and an International Studies Ph.D from Tufts University, The Fletcher School of Law and Diplomacy.

Hugo Verdegaal became a ~~Director~~director on March 12, 2013. Mr. Verdegaal has more than 30 years experience as a business manager and senior client banker in the Latin America markets. Mr. Verdegaal has served as Citigroup’s and Citicorp’s Latin America managing director in the investment banking and corporate finance divisions in New York, as well as vice president of Citibank in Sao Paulo, Brazil. He received an M.A./B.A. in Economics degree from the Erasmus University (formerly Netherlands School of Economics), as well as an M.B.A. from the University of Michigan, Ann Arbor.

~~Marí~~María Catalina Saieh ~~Guzmá~~Guzmán became an ~~Alternate Director~~alternate director on February 2, 2012. Ms. Saieh previously served as ~~Cultural Associated~~cultural associated and ~~Opinion Associated Editor~~opinion associated editor at La Tercera ~~Newspaper. She has been a Member of the Board of CorpVida Insurance Company since 2009 and became its Chairman in 2011.~~newspaper. Ms. Saieh was also ~~Vice-Chairman~~vice-chairman of the ~~Board~~board of Consorcio Periodístico de Chile S.A. (COPESA) during ~~2007.~~2007 and chairman of the board of CorpVida Insurance Company. In 2010, she became ~~Chairman~~chairman of the ~~Board~~board of Fundación Descúbreme and ~~Chairman~~chairman of the ~~Board~~board Fundación Educacional Colegio El Golf. Ms. Saieh is a ~~Member~~member of the ~~Board~~board of Fundación CorpArtes. Ms. Saieh also serves similar positions on a variety of different boards. She holds a B.A. in English and a M.A. in Literature from Pontificia Universidad Católica de Chile. She also holds a M.B.A. from the

University of Chicago, Booth School of Business. Alvaro Saieh Bendeck is the father of María Catalina Saieh Guzmán. María Catalina Saieh Guzmán and Jorge Andres Saieh Guzmán are siblings.

~~Ana Beatriz Holuigue Barros~~Alvaro Barriga Oliva became an ~~Alternate Director~~alternate director on ~~August 30, 2011. Previously, Ms. Holuigue was~~March 20, 2015. Mr. Barriga has been the general counsel of Corp Group for the last 15 years. He previously served as a ~~professor at the Universidad Católica de Chile and served various roles at COPEC. She currently serves on~~member of the board of directors of ~~Grupo de Radios Dial, Copesa~~SMU S.A. (20011-2014) and ~~Supermercados de Chile S.A., among others. She~~as general counsel of COPESA. He received ~~a B.A. in Business and Administration~~his Law degree from the ~~Universidad Católica de Chile.~~Diego Portales University and holds a Masters in Corporate Law from New York University.

Fernando Massú Tare became the CEO in February 2012. Mr. Massú previously served as a ~~Director~~director and ~~Second Vice Chairman~~second vice chairman of our ~~Board~~board of ~~Directors~~directors from October 15, 2009 until January 24, 2012. Prior to this, Mr. Massú served as Group Corporate ~~Director~~director of CorpGroup (2008). Previously, he held the position of Global Wholesale Banking ~~Director~~director at Banco Santander-Chile from 1995-2007. Between 1992 and 1995, Mr. Massú had management positions within the Santander Group in Portugal and Canada. From 1982 to 1992, Mr. Massú worked as General Manager Citicorp Chile Agencia de Valores. Mr. Massú received a B.A. in Business and Administration from Universidad Adolfo Ibáñez and attended a Professional Management Course at Harvard University.

Eugenio Gigogne Miqueles became CFO of CorpBanca in April 2010. Previously, he had served as head of the market risk department. Before joining CorpBanca in 2009, Mr. Gigogne was the CFO at Scotiabank — Chile for eight years. Mr. Gigogne received a B.A. in Business and Economics from the Universidad de Chile and a M.B.A. from Tulane University, USA.

~~José~~José Francisco SáSánchezFigueroa became ~~Director~~corporate director of Wholesale Banking in March 2012. Previously, he served as the Division Manager of CorpBanca since October 2009. Mr. Sánchez served as Deputy Head Large Companies and

Corporate at CorpBanca, as well as other postings within the area (1996-2009). Mr. Sánchez received a B.A. in Business and Economics from the Universidad Católica de Chile.

Cristián Canales Palaciosbecame ~~Director~~corporate director of Legal ~~Services~~ & Control in March 2012. Mr. Canales also served as Interim CEO from December 29, 2011 to February 5, 2012 following the resignation of Mario Chamorro Carrizo. Previously, he served as Division Manager of Legal Services from 2003 to 2012. Mr. Canales served as our Legal Services Manager from 2002 to February 2003 and as Senior Attorney from 1996 to 2001. From 1989 to 1996, Mr. Canales served as an ~~Attorney~~attorney for Banco Osorno y La Unión. Mr. Canales received a law degree from the Universidad de Chile.

Richard Kouyoumdjian Inglis became ~~Director~~corporate director of Products, Marketing & Quality Service in September 2014. He previously served as ~~Director~~director of Shared Services between March 2012 and August 2014. He also previously served as the CFO and Chief Administrative Officer for the South American, Caribbean and Central America regions of Citigroup. Mr. Kouyoumdjian received a BSC in Naval Weapons Engineering from the Academia Politécnica Naval and a M.B.A. from the Universidad Católica de Chile. He also attended postgraduate studies at the Universities of Chicago and Cornell.

Jorge Hechenleitner Adams became Division Head of Wealth Management in January 2012. Previously, he served as Head of Private Banking (Nobel y Prime) at Banco Santander-Chile for five years. His highest title at Banco Santander-Chile was Manager of Subsidiaries division with 300 offices under his supervision. Mr. Hechenleitner received a B.A. in Business Administration from the Universidad Austral de Chile.

Gerardo Schlotfeldt Leighton became Division Head of Banco Condell in June 2010 and as Division Head of Retail Banking in January 2011. Previously, he served as CEO of Banco Paris. Mr. Schlotfeldt received an undergraduate degree in Industrial Civil Engineering from the Universidad Católica de Chile.

~~Oscar Cerda Urrutia~~ became the Division Head of Companies & SME & Retail Banking in June 2008. Mr. Cerda previously served as CEO of Banco Ripley. Mr. Cerda received a B.A. in Business and Administration from the Universidad de Concepcion.

Pedro Silva Yrarrázaval became Division Head of International and Finance in October 2006. Mr. Silva previously served as CEO of our subsidiary CorpBanca Administradora General de Fondos S.A. (Asset Management). Mr. Silva received a B.A. in Business and Administration from the Universidad de Chile. Mr. Silva also received a M.B.A. from the University of Chicago.

~~María Gabriela Salvador~~ Broussaingaray has served as the Division Head of Products & Distribution Channels since August 2012. Between April and July 2012, Ms. Salvador was the Division Head of Customer Service. Previously, she had the same responsibility in Banco de Chile. Ms. Salvador received a B.A. in Business and Economics from the Universidad de Chile and has more than 18 years of experience in the financial sector.

Jorge Garrao Fortes became Division Head of Retail Credit Risk in September 10, 2010. He has over 14 years of experience in the financial market. Mr. Garrao received an undergraduate degree in Industrial Civil Engineering from the Universidad de Chile.

José Brito Figari became Division Head of Commercial Credit Risk in June 2011. Previously, Mr. Figari served as Manager of Commercial Credit Risk from 2008 to 2011. Mr. Brito received a B.A. in Business and Administration from Universidad Adolfo Ibáñez.

Patricia Retamal Bustos became Division Head of Synergies & Customer Service in December 2014. She previously served as Division Head of Synergies between January 2012 and November 2014. She has been with CorpBanca for four years, first as Manager of Corporate Banking. Ms. Retamal has 17 years of experience working at banks in the commercial credit risk and Large Companies and Corporations areas, including five years working at Banco Santander-Chile and eight years at Banco de Chile. Ms. Retamal received a B.A. in Business and Administration from the Universidad de Santiago de Chile.

Rodrigo Oyarzo Brncic became Division Head of Corporate and Large Companies in January 2012. Previously, he served as Manager of Structured Business from January 2009 to December 2011. Mr. Oyarzo received a B.A. in Business and Administration from the Universidad de Santiago.

Ricardo Torres Borge became Division Head of Real Estate in March 2012. Previously, he worked in Banco Santander’s Investment Banking area for sixteen years under the following positions: Investment Funds ~~Director,~~director, General Manager of Santander S.A. Administradora de Fondos de Inversión, Head of Real Estate Investment Banking Latam, Head of Structured Finance, Head of Corporate, Investment Banking and M&A, , and Head of Equities. He was also in charge of Euroamérica’s Corporate Finance area for one year in 2011. Mr. Torres received an undergraduate degree in Commercial Engineering/accountants from Pontificia Universidad Católica de Chile.

Rodrigo Arroyo Pardo became Division Head of Treasury in March 2012. Prior to his new role, he served as Manager of Large Companies, Corporate & Real State of CorpBanca. Mr. Arroyo has been with CorpBanca since 2005 when he worked as an Assistant Manager of Investments in Local Currency. He was later named Manager of Trading in 2007. Previously, Mr. Arroyo

worked for Grupo Santander for seven years and Metlife for five years. Mr. Arroyo received a B.A. in Business and Administration from the Universidad de Santiago de Chile and a M.B.A. from the Universidad Adolfo Ibáñez.

Gerardo Reinike Herman became Division Head of Commercial Financial Products in December 2013. Prior to his new position he served as Manager of Financial Products since December 2008 with the responsibility over the sales force of Money Desk of CorpBanca. Previously, Mr. Reinike worked for 12 years at the Money Desk at Banco Santander Chile in different positions. Mr. Reinike has B.A. in Business and Administration from Universidad Andrés Bello.

Pablo de la Cerda Merino has served as the Division Head of Legal Services since April 2012. Previously he has served as a Chief Legal Counsel of the bank since July 1996. From 1992 to 1996, Mr. De la Cerda has served as a Chief Legal Counsel at Banco Osorno y La Unión, and previously he served as legal counsel in the legal department of several Chilean banks. Mr. De la Cerda received a law degree from Universidad de Chile and an Executive LLM from Universidad del Desarrollo.

Marcela Leonor Jiménez Pardo became Division Manager of Human Resources in July 2012. Previously, she served in the Global Banking Consulting Group at Banco de Chile from 2008 to 2012. Ms. Jiménez received an undergraduate degree in Philology from the Pontificia Universidad Católica de Chile. She also holds a postgraduate degree in Human Resources Management from the Adolfo Ibáñez.

Américo Becerra Morales became Division Head of Operations and IT in September 2014. He previously served as Division Head of Operations between April 2012 and August 2014. Previously, he also served as Manager of Technology, and Global Operations at Banco Santander-Chile. Mr. Becerra has over 20 years of professional experience in the financial sector. He currently serves as an ~~Alternate Director~~alternate director for the Association of Mutual Funds and the chairman of the ~~Committee~~committee of ~~Financial Operations~~financial operations of the Association of Banks and Financial Institutions. Mr. Becerra is the former chairman of the ~~Audit Committee~~audit committee of the Central Securities Depository (DCV) and former chairman of the Operations and ~~Technology Committee~~technology committee at the DCV. He also previously served as ~~Director~~director and Chairman of Santander S.A. Agente de Valores. Mr. Becerra received his auditor license at the Universidad de Santiago, a B.A. from the Universidad Católica de Chile, a M.B.A. from the Executive Development Institute and a Professional Development Degree from the Universidad de los Andes.

~~María Eugenia de la Fuente Núñez~~ has served as the Division Head of Quality, Transparency & Customer Services since March 2013. Ms. De la Fuente was previously the Vice Minister of Secretary General of Government. She received a B.A. in Business and Administration from Universidad de Chile. She also holds a postgraduate degree in Tax Planning and Management from University Adolfo Ibáñez.

Cristián Guerra Bahamondesbecame the Division Head of IT in October 2013. Previously he served as Chief Operational Risk and Information Security since May 2010. Previously he served as Chief Information Security Officer Since September 2008. Mr. Guerra began working at CorpBanca in 1998 in different positions in the area of information technologies. Mr. Guerra received B.A computer engineer from the Universidad de Ciencias de la Informática. Mr. Guerra also received a Masters in Business and Administration from the Universidad Federico Santa María. Mr. Guerra also received a Masters degree in Information Technology from the Universidad Federico Santa María.

Jorge Max Pozuelosbecame Retail Banking Officer in October 2009. Previously he served as “Gerente Zonal en la División Comercial Personas” since 2006. Mr. Max received a B.A. in Business and Administration from Universidad Diego Portales and a M.B.A. from the Universidad Católica de Chile.

Hernán Cerda Jaramillobecame SME Banking Officer in June 2015. Previously he served as SME and Companies Officer since 2010. Mr. Cerda received a B.A. in Business and Administration from Universidad Diego Portales.

Patricio Jimenez Anguitabecame Companies Banking Officer in June 2015. Previously he served as Commercial Credit Risk Officer since 2004. Mr. Jimenez received an undergraduate degree in Industrial Civil Engineering from the Universidad de Santiago.

José Manuel Mena Valencia became our Comptroller Division Head in March 2008. From 1995 to 2008 Mr. Mena served as the CEO at Banco del Estado de Chile. Previously, he was CFO at Banco Osorno y La Union. Mr. Mena received an undergraduate degree in Industrial Civil Engineering. Mr. Mena also received a Masters in Economics from the Universidad de Chile.

Felipe Cuadra Campos became Chief Compliance Officer in October, 2013. Previously, he served as Corporate Attorney at CorpGroup Holding from 2010 to 2013 and as Senior Attorney at CorpBanca from 2006 to 2009. Between 2002 to 2005 Mr. Cuadra served as the Attorney at CorpBanca. Mr. Cuadra received a law degree from the Universidad Gabriela Mistral (Chile) and also received a Master of Laws in Taxation from Universidad Adolfo Ibáñez (Chile).

Fernando Burgos Concha became General Manager of CorpBanca´s New York Branch in June 2010. Previously, Mr. Burgos served as Manager of the International Area of CorpBanca for a period of seven years. Previously, he held several

positions within CorpBanca and its parent, Corp Group Banking S.A. Mr. Burgos received a Bachelor of Science in Management from the US Air Force Academy, Colorado Springs USA.

Jaime Munita Valdivieso became CEO of Banco CorpBanca Colombia in May 2012. Previously, Mr. Munita worked for Grupo Santander Chile from 1997 to 2008, where he served as Manager at the Santander Chile Securities Agency, as Area Chief at Banco Santander Chile and as Fund Manager at Santander Asset Management. He also previously served as a direct advisor to CorpBanca, and currently serves as a member of the Banco CorpBanca Colombia ~~Board~~board of ~~Directors.~~directors. Mr. Munita received an undergraduate degree in Commercial Engineering from the Universidad de Finis Terrie and a Master of Business Administration from the Universidad Alfonso Ibáñez.

Consistent with Chilean law, we do not disclose to our shareholders, or otherwise make public, information regarding the individual compensation of our directors or officers. For the year ended December 31, ~~2014,~~2015, we paid fees to each of our directors in the amount of UF100 per month and the chairman UF600 per month. No amounts were set aside or accrued by us to provide pension, retirement or similar benefits for our directors and executive officers. In the ordinary shareholders’ meeting held on March ~~12, 2015,~~11, 2016, the ~~Board~~board of ~~Directors~~directors agreed to continue to pay each director UF100 per month and the chairman UF600 per month. We also engage in transactions with companies controlled by certain of our directors under the applicable requirements of the Chilean Corporations ~~Law.~~Act. See “Item 7.B. Related Party Transactions”. In the year ended December 31, ~~2014,~~2015, we paid our senior management and ~~Directors-Audit Committee~~directors-audit committee members an aggregate of Ch$~~18,651~~18,622 million. Chilean law does not require us to have a compensation committee.

The period during which the directors have served in their office is shown in the table under Section A of this Item 6. The date of expiration of the current term of office is shown in the table below:

Pursuant to the provisions of our bylaws, the members of the board are generally renewed every three years, based on length of service and according to the date and order of their respective appointments. In the Ordinary Shareholders’ Meeting held on March 11, 2016, the board of directors of CorpBanca was renewed in its entirety. Consequently, the nine persons listed above were elected as holders of the office of director until the next shareholders meeting to be held approximately 10 days after the completion of our legal merger with Banco Itaú Chile.

Our ~~Board~~board maintains an ~~Audit Committee~~audit committee which is currently comprised of five members, including four directors and one non-director members. The current members of the ~~Audit Committee~~audit committee are Messrs. Gustavo Arriagada Morales, who chairs it, ~~Rafael Guilisasti Gana,~~José Luis Mardones Santander, Hugo Verdegaal, María Catalina Saieh Guzmán and Juan Echeverría González. The permanent consultant was Mr. Alejandro Ferreiro Yazigi.

The main duties of the ~~Audit Committee~~audit committee are to review the efficiency of internal control systems, to ensure compliance with laws and regulations and to have a clear understanding of the risks involved in our business. The SBIF recommends that at least one of the members of the ~~Audit Committee,~~audit committee, who must also be a member of the ~~Board~~board of ~~Directors,~~directors, be experienced with respect to the accounting procedures and financial aspects of banking operations. The members of the ~~Audit Committee~~audit committee appointed by the ~~Board~~board of ~~Directors~~directors must be independent according to the criteria set by the ~~Board~~board of Directors. In furtherance of the independence of the Audit Committee, our Board of Directors has determined that Audit Committee members should not, for the last three years, have held positions as our principal executive officers, have performed professional services for us, have commercial commitments with us or with any of our affiliates or related persons, or have relations with other entities related to us from which they have received material payments.directors. Moreover, they may not accept any payment or

other compensatory fee from us, other than in their capacity as members of the ~~Audit Committee~~board of directors, of the audit committee or of other committees. All the members of the ~~Audit Committee~~audit committee receive a monthly remuneration.

A description of the experience and qualifications for Messrs. Gustavo Arriagada Morales, ~~Rafael Guilisasti Gana,~~José Luis Mardones Santander, Hugo Verdegaal and María Catalina Saieh Guzmán, each of whom is a director of the Company is included in Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management. Below we include a summary of the experience and qualification for Juan Echeverría González, who is a non-director member of the ~~Audit Committee.~~audit committee.

Juan Echeverría González Mr. Echeverría currently serves as Corporate Chief Compliance Officer at CorpGroup. He was previously in charge of Deloitte’s audits of Banco Osorno, BBVA, Banco del Desarrollo, Banco Internacional, Financiera Condell, Banco CorpBanca Venezuela, and of several services provided to such financial institutions from 1993 to 2012. Mr. Echeverría is currently a director and a member of the audit committee of Compañía Minera San Gerónimo, CorpGroup Activos Inmobiliarios S.A., CorpBanca Colombia and Helm Colombia, and an advisor to the ~~Board~~board of ~~Directors~~directors and ~~Audit Committee~~audit committee of Copesa. He has participated in several local and international seminars regarding corporate governance, restructurings and business acquisitions. Mr. Echeverría received B.A. in Accounting from Universidad de Chile and received a two Masters degree from the Universidad Adolfo Ibáñez.

The ~~Audit Committee’s~~audit committee’s responsibilities are, among others:

proposing external auditors and rating agencies to the ~~Directors Committee;~~directors’ committee;

analyzing and supervising the activities, organizational structure and qualifications of our internal auditing staff, who report directly to the ~~Audit Committee;~~audit committee;

analyzing rating agencies’ reports and their content, procedures and scope;

approving the audit plan for us and our affiliates;

reviewing audits and internal reports;

coordinating with internal and external auditors;

reviewing annual and interim financial statements and informing the ~~Board~~board of ~~Directors~~directors of the results of such reviews;

reviewing the reports, procedures and extent of the work of external auditors;

reviewing the procedures and content of reports from external risk evaluators;

discussing the effectiveness and reliability of internal control procedures;

reviewing the performance of information systems, their sufficiency, reliability and use in decision making;

discussing the observance of internal regulations related to compliance with laws and regulations;

investigating suspected fraudulent activities;

reviewing the inspection reports, instructions and presentations from the SBIF;

reviewing compliance with the annual program of internal auditing;

informing the ~~Board~~board of ~~Directors~~directors of any change in accounting principles and its effects;

setting procedures for the ~~receiving,~~reception, consideration and treatment of complaints regarding accounting, internal accounting controls or other auditing matters, and for the confidential submission by employees of questionable matters regarding accounting or auditing matters;

ensuring that internal auditing has the resources and sufficient support to properly perform its duties; monitoring the solutions provided to identified matters; and generally ensuring the implementation and consolidation of best practices in the ~~Bank.~~bank.

approving the crime prevention model and designating the company that will certify it;

reviewing semiannually the performance of the compliance manager and ensuring that he or she is empowered with sufficient authority and resources to fulfill his or her duties;

approving the audit charter, the code of ethics and the internal auditing manual;

reviewing the strategic plan, budget and human resource structure of the ~~Bank’s~~bank’s comptroller;

proposing to the ~~Board~~board of ~~Directors~~directors the appointment, reappointment or removal of the comptroller manager, evaluating his or her performance and approving his or her annual compensation;

examining any alleged fraud and potential breaches of laws and regulations communicated through internal auditing;

setting criteria for the selection and evaluation of the external auditors; and

verifying the compliance of the rotation policy for external auditors.

The ~~Audit Committee~~audit committee has charters that establish their composition, organization, objectives, duties, responsibilities and extension of its activities. The SBIF requires the ~~Audit Committee~~audit committee to meet at least every four months and to provide an annual written report to the ~~Board~~board of ~~Directors~~directors informing it of its activities. The report must also be presented to the annual shareholders’ meeting. According to their charter, the ~~Audit Committee~~audit committee a meet twice per month.

Our ~~Board~~board maintains a ~~Directors Committee~~directors committee which is currently comprised of four members, including three directors and one non-director members. The current members of the ~~Audit Committee~~directors committee are Messrs. Gustavo Arriagada Morales, who chairs it, Hugo Verdegaal, José Luis Mardones Santander and Juan Echeverría González.

The ~~Directors Committee’s~~directors committee’s responsibilities are, among others:

reviewing the reports of the internal and external auditors, the balance sheet and any other financial statements presented by the administration to the shareholders, and to sign-off on it prior to its presentation to the shareholders for approval;

recommending external auditors and rating agencies to the ~~Board~~board of ~~Directors;~~directors;

reviewing operations with related parties and reporting to the ~~Board~~board of ~~Directors;~~directors;

reviewing the compensation plans of executive officers and principal officers;

examining the systems of remuneration and compensation plans for managers, senior executives and employees of the Company;

preparing an annual report about its activities, including its main recommendations to shareholders;

other duties required by our By-laws, a shareholders meeting and our ~~Board~~board of ~~Directors;~~directors.

A description of the experience and qualifications for Messrs. Gustavo Arriagada Morales, Hugo Verdegaal and José Luis Mardones Santander, each of whom is a director of the Company is included in Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management. A description of the experience and qualifications for Mr. Juan Echeverría González, who is a non-director member of the ~~Director Committee~~director committee and the ~~Audit Committee~~audit committee is included in Item 6. Directors, Senior Management and Employees—C. Board Practices—Board Committees—Audit Committee.

The ~~Directors Committee~~directors committee has charters that establish their composition, organization, objectives, duties, responsibilities and extension of its activities. The SBIF requires the ~~Directors Committee~~directors committee to meet at least every four months and to provide an annual written report to the ~~Board~~board of ~~Directors~~directors informing it of its activities. The report must also be presented to the annual shareholders’ meeting. According to their charter, the ~~Directors Committee~~directors committee a meet twice per month.

The corporate governance committee was established by the ~~Board~~board of ~~Directors~~directors as an advisory body of it that aims to ensure the existence and development of better corporate governance practices for financial institutions. For that purpose, it is in charge of evaluating practices and policies that are currently in execution, making proposals to the ~~Board~~board of ~~Directors~~directors of improvements, adjustments or reforms and pursuing for the proper implementation and applications of said practices and policies of corporate governance. The committee performs its duties with respect to the bank, its affiliates and related entities abroad.

The committee is composed of five directors and is empowered to engage external consultants. During ~~2014,~~2015, Ms. María Catalina Saieh Guzmán was the chairperson of the committee and the other members were Ms. Ana Holuigue Barros, Mr. ~~Rafael Guilisasti Gana, Mr.~~ José Luis Mardones Santander, ~~and~~ Mr. Gustavo Arriagada Morales and Mr. Alvaro Barriga Oliva (all of whom were directors). The permanent consultant was Mr. Alejandro Ferreiro Yazigi.

The committee is regulated by its by-laws, by applicable legal and regulatory rules and by the principles established by the Organization for Economic Co-operation and Development (OECD) as well as those defined by the Basel Committee on Banking Supervision on good corporate governance matters for financial institutions.

This committee is in charge of preventing money laundering and terrorism financing. Its main purposes include planning and coordinating activities to comply with related policies and procedures, staying informed about work carried out by the Compliance Officer and making decisions on any improvements to control measures proposed by the Compliance Officer. This committee is comprised of one director, the CEO, the Legal and Control ~~Director,~~director, one Area Manager and the Compliance Officer. This committee has the authority to request attendance from any executives or associates that it deems necessary. The committee has regular monthly meetings and holds extraordinary sessions when considered appropriate by any of its members.

The purpose of this committee is to monitor compliance with our ~~Codes~~codes of ~~Conduct~~conduct and other complementary rules, establish and develop procedures necessary for compliance with these codes, interpret, administer and supervise compliance with these rules and resolve any conflicts that may arise. This committee is comprised of one director; the CEO; the Legal and Control ~~Director;~~director; the Division Head of Human Resources and the Compliance Division Head.

The purpose of this ~~Committee~~committee is to adopt measures to ensure proper and efficient assessment of social and environmental impacts generated by the activities and projects that we finance, to meet the requirements of the IFC and to reduce the risks to us of assuming the costs transferred by these indirect social and environmental risks. Additionally, this ~~Committee~~committee proposes internal policies and procedures on environmental and corporate social responsibility matters to the Bank’s ~~Chief Executive Officer.~~board of directors.

The ~~Committee~~committee is comprised of the persons holding the positions of ~~Director~~corporate director of Legal ~~Affairs~~ and Control, ~~Companies~~corporate director of Wholesale banking, Commercial Credit Risk Division ~~Manager,~~Head, Companies and Retail Banking Division ~~Manager,~~Head, Large Companies and Corporate Division Head, International Banking Officer, SME Banking Officer, Companies Banking Officer, Legal Services Division ~~Manager~~Head and the Environmental Officer. The ~~Committee~~committee may invite to its meetings any Bank executive or associate that it deems necessary.

As of December 31, ~~2014,~~2015, on a consolidated basis, we had ~~7,456~~7,545 employees. Approximately ~~36.9%~~37.5% of our employees were unionized as of December 31, ~~2014.~~2015. All management positions are held by non-unionized employees. We believe that we have good relationships with our employees and the unions to which some of our employees belong. OnOur employees are covered by a collective bargaining agreement, which we entered into on August 1, 2014, ~~we entered into a new collective bargaining agreement~~ which provides for improved benefits ~~for the employees~~ and ~~will be in force for~~has a term of four ~~year period.~~years.

Mr. Saieh Bendeck together with his family maintains an indirect ownership of 75.6% of Corp Group Banking S.A. In addition, Mr. Saieh Bendeck with his family are indirect holders of 100% of the ownership rights of Saga. As of the date hereof, Corp Group Banking S.A. and Compañía Inmobiliaria y de Inversiones Saga SpA, controlled by Mr. Saieh Bendeck, beneficially own approximately 43.73%, and 6.15% of our outstanding shares, respectively.

Our directors and senior managers do not have different or preferential voting rights with respect to those shares they own.

We do not have any arrangements for issuing capital to our employees, including any arrangements that involve the issue or grant of options of our shares or securities.

Our only outstanding voting securities are our common shares. As of December 31, ~~2014,~~2015, we had 340,358,194,234 common shares outstanding.

At an extraordinary Board of Directors meeting held on January 15, 2013, our shareholders approved the following matters related to the extraordinary shareholders meeting held on November 6, 2012: (i) to preferentially offer shareholders 47,000,000,000 common shares with no par value, and (ii) set the period to exercise the preferential right on these shares from January 16 to February 14, 2013.

~~All of the common shares offered were subscribed for a total amount of Ch$291,168 million. This amount is comprised of Ch$143,225 million in capital and Ch$147,843 million in reserves.~~

The following table sets forth information with respect to the record and beneficial ownership of our capital stock as of ~~March~~December 31, 2015:

On November 21, 2003, CGB completed the offering and sale of 5,287,726 ADSs, representing an aggregate of 26,438,630,000 common shares, or 5,000 common shares per ADS, in a transaction exempt from the registration requirements of the Securities Act pursuant to Rule 144A and Regulation S thereunder. Concurrently with the ADSs offering, Corp Group Banking S.A. completed a public offering and sale of 26,438,637,013 common shares in Chile. In October 2004, we conducted a public offering of ADSs in exchange for ADSs that had been issued pursuant to Rule 144A. Also, on November 1, 2004, our ADSs were listed on the New York Stock Exchange.

As of ~~March 31, 2015,~~February 29, 2016, ADR holders (through the depositary) and foreign investors held approximately ~~19.19%~~28.49% of our total common shares, represented by ~~four~~five registered shareholders (Deutsche Bank Trust Company Americas - ADRs; Banco de Chile on behalf of non-resident third parties; Banco Itaú on behalf of investors; Banco Santander on behalf of foreign ~~investors)~~investors; Sierra Nevada Investments Chile Dos Ltda.). The remaining ~~80.81%~~71.51% of our total shares were held locally, in Chile, represented by ~~275,058,782,110~~243,375,171,062 shares held by local shareholders. All of our shareholders have identical voting rights.

Corp Group Banking and Saga accounted for approximately 43.73% and 6.15%, respectively, of our outstanding common shares as of December 31, ~~2014.~~2015. In connection with the pending Itaú-CorpBanca Merger, between August and September 2014 and February 2016, Corp Group Banking and Saga sold 5,208,000,000 and 344,218 common shares, respectively, of CorpBanca, decreasing its joint share ownership by 1.53%. Corp Group Banking and Saga are each controlled by Mr. Saieh who, together with members of his family, controls CorpBanca.

After the closing of the Itaú-CorpBanca Merger, Itaú Unibanco and our current controlling shareholders will beneficially own 33.58% and 33.13% of our outstanding common shares, respectively. In connection with the Transaction Agreement, our controlling shareholders have agreed that at the closing of the Itaú-CorpBanca Merger, they will enter into the Itaú-CorpBanca Shareholders Agreement, whereby Itaú Unibanco will control the merged bank, or Itaú-CorpBanca, after the consummation of the Itaú-CorpBanca Merger. For a description of the Itaú-CorpBanca Shareholders Agreement and the Transaction Agreement, see Item 10. Additional Information—C. Material Contracts.

In the ordinary course of our business, we engage in a variety of transactions with certain of our affiliates and related parties. The Chilean Corporations ~~Law~~Act requires that our transactions with related parties be in our interest and also on an arm’s-length basis or on similar terms to those customarily prevailing in the market. We are required to compare the terms of any such transaction to those prevailing in the market at the date the transaction is to be entered into. In the event that the transaction is not within the ordinary course of business, prior to its effectiveness, the ~~Directors Committee~~directors committee must prepare a report describing the conditions of the operation and present it to the ~~Board~~board of ~~Directors~~directors for its express approval. Directors of companies that violate this provision are liable for the resulting losses. Under the Chilean General Banking ~~Law,~~Act, transactions between a bank and its affiliates are subject to certain additional restrictions.

Under the Chilean Corporations ~~Law,~~Act, a “related party transaction”, in the case of an open stock corporation, is ~~deemed to be~~ any operation between ~~an open stock~~such corporation and (i) one or more related persons under ~~Article~~article 100 of the Securities Market Act (see below), (ii) a director, manager, administrator, principal officer or liquidator of the corporation, by him/herself or on behalf of persons other than the corporation, or their respective spouses or blood or marriage relatives to the second degree, (iii) an entity of which any of the persons indicated in the previous numeral is the direct or indirect owner of ten percent or more of its capital or a director, manager or officer, (iv) a person or entity determined as such by the by-laws of the corporation or the board committee, and (v) an entity in which a director, manager, administrator, principal officer or liquidator of the corporation, has acted in any of those capacities during the immediately previous 18 months.

Article 100 of the Securities Market Act provides that the following persons are “related” to a company: (i) the other entities of the business conglomerate to which the company belongs, (ii) parents, subsidiaries and equity-method investors and investees of the company, (iii) all directors, managers, officers and liquidators of the company and their spouses or blood relatives to the second degree, or any entity controlled, directly or indirectly, by any of the referred individuals, (iv) any person that, by him/herself or with other persons under a joint action agreement, may appoint at least one member of the management of the company or control ten percent or more of the capital or voting capital of a stock company and (v) other entities or persons determined as such by the SVS.

A publicly-traded corporation may only enter into a related transaction when its aim is to contribute to the corporate general interests, its conditions are set at ~~arms’~~arm’s length and the corporation has followed the procedure indicated in the Chilean Corporations ~~Law.~~Act. The procedure to approve a related transaction can be summarized as follows: (i) the directors, managers, administrators, principal officers and liquidators involved in the potential transaction must give notice thereof to the board (these persons are obligated to disclose their interest in the transaction and their reasons to justify the convenience of the transaction for the corporation, both of which must be informed to the public), (ii) the absolute majority of the board, excluding any director involved in the transaction, must approve the transaction, (iii) the approval given by the board must be informed to the next shareholders’ meeting, (iv) if the directors involved in the transaction form the majority of the board, the transaction may only be approved by the unanimity of the remaining directors or by two-thirds of the issued voting shares in the corporation in a shareholders’ meeting, and (v) where the approval of the shareholders’ meeting is required, the board will request an independent appraiser to submit to the shareholders the conclusions regarding the conditions of the transaction.

These rules are not applicable to non-material transactions in terms of amounts involved, transactions included in the ordinary course of business of the corporation, according to the policies approved by the board and transactions with another entity of which the corporation owns at least 95% of its shares or rights.

Non-compliance with these rules does not invalidate the transaction, but the persons involved will be obligated to transfer the benefit accrued thereby from the transaction to the corporation and ~~are~~will be held liable for the potential damages suffered by the corporation. These rules apply to all publicly-traded corporations and to their subsidiaries, regardless of their corporate type.

We believe that we have complied with the applicable requirements of the Chilean Corporations ~~Law~~Act in all transactions with related parties and affirm that we will continue to comply with such requirements.

As of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, loans to related parties totaled ~~CCh$170,957 million,~~ Ch$364,424 million, Ch$228,989 million and ~~Ch$228,989~~CCh$131,858 million, respectively, and related party receivables, other than loans, totaled Ch$~~47,251~~27,325 million, Ch$~~27,325~~18,157 million and ~~Ch$18,157~~CCh$16,805 million, respectively. See Note 33 to our financial statements for a more detailed accounting of transactions with related parties.

As of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, loans to related parties were as follows:

All loans to related parties were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present other unfavorable features. During ~~2012,~~ 2013, 2014 and ~~2014,~~2015, and in accordance with IFRS, the total gross amounts of related party loans outstanding amounted to Ch$~~173,625~~435,106 million, Ch$~~435,106~~272,962 million and Ch$~~272,962~~284,941 million, respectively.

During ~~2012,~~ 2013, 2014 and ~~2014,~~2015, we had the following income (expenses) from services provided to (by) related parties:

On September 1, 2014, Helm Comisionista de Bolsa S.A. merged with and into CorpBanca Investment Valores Colombia S.A., with CorpBanca Investment Valores Colombia S.A. being the surviving company. Immediately upon consummation of the merger, CorpBanca Investment Valores Colombia S.A. assumed the Helm Comisionista de Bolsa S.A. name.

These transactions were carried out on terms normally prevailing in the market at the date of the transaction.

We ~~were named as a defendant in shareholder litigation captioned~~~~Cartica Management, LLC, et al. v. Corpbanca S.A., et al.,~~ Case No. 1:14-cv-02258-PKC, initially filed in United States District Court for the Southern District of New York on April 1, 2014, and later amended on June 12, 2014. Plaintiffs included minority shareholders who were owners of ADRs and other common shares. Other defendants included our CEO and CFO, CorpGroup, Saga and Mr. Saieh, as well as Itaú Unibanco and Itaú Chile (Itaú Chile together with Itaú Unibanco, the “Itaú Defendants”). Plaintiffs alleged that CorpBanca and other defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and also brought claims for common law fraud. Plaintiffs also alleged that that CorpGroup, Saga, Mr. Saieh and the Itaú Defendants violated Section 13(d) of the Exchange Act, and Rules 13d-1 and 13d-5 promulgated thereunder, and that CorpGroup, Mr. Saieh, certain individual defendants and Itaú Unibanco violated Section 20(a) of the Exchange Act. Plaintiffs alleged, among other

things, that defendants had intentionally misrepresented and failed to disclose material facts concerning the pending Itaú-CorpBanca Merger and the benefits CorpGroup and associated entities and individuals may have received in connection with that merger. Plaintiffs sought injunctive and declaratory relief, including an injunction to prevent the Itaú-CorpBanca Merger from proceeding, as well as unspecified consequential damages. In a Memorandum and Order dated September 25, 2014, the Court granted the defendants’ motions to dismiss the amended complaint, dismissing all claims against all defendants, and granted the directors and officers’ supplemental motion to dismiss. Judgment was entered and the case closed on September 29, 2014. On December 19, 2014, the parties filed a stipulation withdrawing the previously filed notice of appeal, concluding the litigation.

~~In addition, we~~ are involved in collections proceedings initiated by us in the normal course of business and certain proceedings against us in the ordinary course of banking business as disclosed in Note 22 to our audited consolidated financial statements included herein.

We are also involved in litigation with the SBIF before theCorte de Apelaciones de Santiago(Santiago Court of Appeals). On December 30, 2015, the SBIF issued letter N° 16,191 (or Letter 16,191) whereby we were informed that as a consequence of the appointment of the former member of our board of directors, Mr. Rafael Guilisasti Gana, as member of the boards of directors of Norte Grande S.A., Sociedad de Inversiones Oro Blanco S.A. and Sociedad de Inversiones Pampa Calichera S.A., the SBIF had commenced a special review on the corporate group known as “Cascadas” in order to verify our compliance with credit limitations set forth in the Chilean General Banking Act. The SBIF concluded that all the companies of the Cascadas group are part of a “corporate organizational structure” to exercise control over SQM S.A., therefore, they should be considered a single debtor for the purposes of computing the above referenced credit limitations. As a consequence of the above, the SBIF concluded that CorpBanca violated the individual lending limits set forth in article 84 N° 1 of the Chilean General Banking Act in relation to article 85 of the same norm regarding the companies that constitute the Cascadas group. In light of the foregoing, the SBIF imposed a fine on CorpBanca of 10% of the excess of such credit limitations equal to Ch$21,764,507,494 (U.S.$30.65 million).

Our board of directors, in a special meeting held on January 4, 2016, unanimously instructed the management of the bank to exercise any and all available actions and claims in order to rescind in its entirety Letter 16,191, due to material legal grounds and the fact that in imposing the fine the SBIF violated the most basic principles of due process. Consequently, on January 18, 2016, CorpBanca filed areclamación(complaint) before the Santiago Court of Appeals against the SBIF, after having paid the full amount of the fine as this advanced payment is a mandatory requirement imposed by the Chilean law in order to file thereclamación. The complaint filed by the bank seeks that Letter 16,191 is declared null and void, together with the fine imposed thereby; the restitution of the funds paid (which are held, in the meantime, in a special account of the SBIF at Banco del Estado de Chile, which can be withdrawn only to reimburse them to CorpBanca if the Court accepts the claim, or to give the amount to the State upon dismissal of thereclamación) by CorpBanca and the complete acquittal of the bank.

Pursuant to local regulation, on March 4th, 2016, the Court gave the SBIF a term to reply to CorpBanca’s claims. Such response was filed on March 17th, 2016.

In the ordinary course of our business, we engage in a variety of transactions with certain of our affiliates and related parties. The Chilean Corporations Act requires that our transactions with related parties be in our interest and also on an arm’s-length basis or on similar terms to those customarily prevailing in the market. We are required to compare the terms of any such transaction to those prevailing in the market at the date the transaction is to be entered into. In the event that the transaction is not within the ordinary course of business, prior to its effectiveness, the directors committee must prepare a report describing the conditions of the operation and present it to the board of directors for its express approval. Directors of companies that violate this provision are liable for the resulting losses. Under the Chilean General Banking Act, transactions between a bank and its affiliates are subject to certain additional restrictions.

Under the Chilean Corporations ~~Law, as defined herein, Chilean~~Act, a “related party transaction”, in the case of an open stock ~~companies,~~corporation, is any operation between such corporation and (i) one or more related persons under article 100 of the Securities Market Act (see below), (ii) a director, manager, administrator, principal officer or liquidator of the corporation, by him/herself or on behalf of persons other than the corporation, or their respective spouses or blood or marriage relatives to the second degree, (iii) an entity of which any of the persons indicated in the previous numeral is the direct or indirect owner of ten percent or more of its capital or a director, manager or officer, (iv) a person or entity determined as ~~ours,~~such by the by-laws of the corporation or the board committee, and (v) an entity in which a director, manager, administrator, principal officer or liquidator of the corporation, has acted in any of those capacities during the immediately previous 18 months.

Article 100 of the Securities Market Act provides that the following persons are ~~generally required~~“related” to ~~distribute~~a company: (i) the other entities of the business conglomerate to which the company belongs, (ii) parents, subsidiaries and equity-method investors and investees of the company, (iii) all directors, managers, officers and liquidators of the company and their spouses or blood relatives to the second degree, or any entity controlled, directly or indirectly, by any of the referred individuals, (iv) any person that, by him/herself or with other persons under a joint action agreement, may appoint at least ~~30%~~one member of ~~their net income each year, unless otherwise agreed~~the management of the company or control ten percent or more of the capital or voting capital of a stock company and (v) other entities or persons determined as such by the ~~unanimous consent~~SVS.

A publicly-traded corporation may only enter into a related transaction when its aim is to contribute to the corporate general interests, its conditions are set at arm’s length and the corporation has followed the procedure indicated in the Chilean Corporations Act. The procedure to approve a related transaction can be summarized as follows: (i) the directors, managers, administrators, principal officers and liquidators involved in the potential transaction must give notice thereof to the board (these persons are obligated to disclose their interest in the transaction and their reasons to justify the convenience of ~~our shareholders. Provided that~~ the ~~statutory minimum is observed, Chilean law allows a~~transaction for the corporation, both of which must be informed to the public), (ii) the absolute majority of the ~~shareholders~~board, excluding any director involved in the transaction, must approve the transaction, (iii) the approval given by the board must be informed to ~~change and approve our dividend policy for any given period. In~~ the ~~event of any loss of capital or~~next shareholders’ meeting, (iv) if the directors involved in the transaction form the majority of the ~~legal reserve, no dividends can~~board, the transaction may only be ~~distributed so long as such loss is not recovered from earnings~~approved by the unanimity of the remaining directors or ~~otherwise. No dividends above~~by two-thirds of the ~~legal minimum can be distributed if doing so would result~~issued voting shares in the ~~bank exceeding its indebtedness ratio or its lending limits.~~

~~The balance~~corporation in a shareholders’ meeting, and (v) where the approval of ~~our distributable net income~~the shareholders’ meeting is ~~generally retained for use in our business (including for~~required, the ~~maintenance of any required legal reserves). Although our Board of Directors currently intends~~board will request an independent appraiser to pay regular annual dividends, the amount of dividend payments will depend upon, among other factors, our then current level of earnings, capital and legal reserve requirements, as well as market conditions, and there can be no assurance assubmit to the ~~amount or timing~~shareholders the conclusions regarding the conditions of ~~future dividends. Our actual dividend policy is~~the transaction.

These rules are not applicable to ~~distribute~~non-material transactions in terms of amounts involved, transactions included in the ordinary course of business of the corporation, according to the policies approved by the board and transactions with another entity of which the corporation owns at least ~~50%~~95% of ~~each fiscal year net income, calculated as total net income for~~its shares or rights.

Non-compliance with these rules does not invalidate the ~~period less an amount which maintains capital constant in real terms. Dividend distributions in 2012, 2013 and 2014 each amounted to 100%, 50% and 57% of net income for~~transaction, but the ~~immediately precedily fiscal year, respectively.~~

~~In the event that dividends are paid, holders of ADSs~~persons involved will be ~~entitled~~obligated to ~~receive dividends~~transfer the benefit accrued thereby from the transaction to the same extent as the owners of common shares. Dividends received by holders of ADSs will, absent changes in Chilean exchange controls or other laws, be converted into U.S. dollars and distributed net of currency exchange expenses and fees of the depositarycorporation and will be ~~subject~~held liable for the potential damages suffered by the corporation. These rules apply to all publicly-traded corporations and to their subsidiaries, regardless of their corporate type.

We believe that we have complied with the applicable requirements of the Chilean ~~withholding tax, currently imposed~~Corporations Act in all transactions with related parties and affirm that we will continue to comply with such requirements.

As of December 31, 2013, 2014 and 2015, loans to related parties totaled Ch$364,424 million, Ch$228,989 million and CCh$131,858 million, respectively, and related party receivables, other than loans, totaled Ch$27,325 million, Ch$18,157 million and CCh$16,805 million, respectively. See Note 33 to our financial statements for a more detailed accounting of transactions with related parties.

As of December 31, 2013, 2014 and 2015, loans to related parties were as follows:

All loans to related parties were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral, as those prevailing at the ~~rate~~time for comparable transactions with other persons, and did not involve more than the normal risk of ~~35% (which may be subject~~collectability or present other unfavorable features. During 2013, 2014 and 2015, and in accordance with IFRS, the total gross amounts of related party loans outstanding amounted to ~~credits in certain cases). Owners of ADSs are not charged with any fees with respect~~Ch$435,106 million, Ch$272,962 million and Ch$284,941 million, respectively.

During 2013, 2014 and 2015, we had the following income (expenses) from services provided to ~~cash or stock dividends.~~(by) related parties:

~~There have been no significant changes since~~These transactions were carried out on terms normally prevailing in the market at the date of ~~our annual financial statements.~~

The table below shows, for the periods indicated, high and low closing prices (in nominal Chilean pesos) of the common shares on the Santiago Stock Exchange and of our ADSs on the New York Stock Exchange.

~~As of the date of this Annual Report, no trading suspensions relating to our common shares have occurred.~~

Our common shares are traded on the Santiago Stock Exchange under the symbol “CorpBanca”. Our ADSs have been listed since November 1, 2004 on the New York Stock Exchange under the symbol “BCA”.

We are involved in collections proceedings initiated by us in the normal course of business and certain proceedings against us in the ordinary course of banking business as disclosed in Note 22 to our ~~share capital and~~audited consolidated financial statements included herein.

We are also involved in litigation with the SBIF before theCorte de Apelaciones de Santiago(Santiago Court of Appeals). On December 30, 2015, the SBIF issued letter N° 16,191 (or Letter 16,191) whereby we were informed that as a ~~brief summary~~consequence of the ~~significant provisions~~appointment of the former member of our ~~by-laws,~~board of directors, Mr. Rafael Guilisasti Gana, as ~~defined below,~~member of the boards of directors of Norte Grande S.A., Sociedad de Inversiones Oro Blanco S.A. and ~~Chilean law. This description contains material information concerning~~Sociedad de Inversiones Pampa Calichera S.A., the ~~shares, but does not purport~~SBIF had commenced a special review on the corporate group known as “Cascadas” in order to ~~be complete and is qualified~~verify our compliance with credit limitations set forth in ~~its entirety by reference to our by-laws,~~ the Chilean General Banking ~~Law,~~Act. The SBIF concluded that all the companies of the Cascadas group are part of a “corporate organizational structure” to exercise control over SQM S.A., therefore, they should be considered a single debtor for the purposes of computing the above referenced credit limitations. As a consequence of the above, the SBIF concluded that CorpBanca violated the individual lending limits set forth in article 84 N° 1 of the Chilean ~~Corporations Law~~General Banking Act in relation to article 85 of the same norm regarding the companies that constitute the Cascadas group. In light of the foregoing, the SBIF imposed a fine on CorpBanca of 10% of the excess of such credit limitations equal to Ch$21,764,507,494 (U.S.$30.65 million).

Our board of directors, in a special meeting held on January 4, 2016, unanimously instructed the management of the bank to exercise any and all available actions and claims in order to rescind in its entirety Letter 16,191, due to material legal grounds and the fact that in imposing the fine the SBIF violated the most basic principles of due process. Consequently, on January 18, 2016, CorpBanca filed areclamación(complaint) before the Santiago Court of Appeals against the SBIF, after having paid the full amount of the fine as this advanced payment is a mandatory requirement imposed by the Chilean ~~Securities Market Law each referred~~law in order to ~~below.~~file thereclamación. The complaint filed by the bank seeks that Letter 16,191 is declared null and void, together with the fine imposed thereby; the restitution of the funds paid (which are held, in the meantime, in a special account of the SBIF at Banco del Estado de Chile, which can be withdrawn only to reimburse them to CorpBanca if the Court accepts the claim, or to give the amount to the State upon dismissal of thereclamación) by CorpBanca and the complete acquittal of the bank.

Pursuant to local regulation, on March 4th, 2016, the Court gave the SBIF a term to reply to CorpBanca’s claims. Such response was filed on March 17th, 2016.

Under the Chilean Corporations Act, a “related party transaction”, in the case of an open stock corporation, is any operation between such corporation and (i) one or more related persons under article 100 of the Securities Market Act (see below), (ii) a director, manager, administrator, principal officer or liquidator of the corporation, by him/herself or on behalf of persons other than the corporation, or their respective spouses or blood or marriage relatives to the second degree, (iii) an entity of which any of the persons indicated in the previous numeral is the direct or indirect owner of ten percent or more of its capital or a director, manager or officer, (iv) a person or entity determined as such by the by-laws of the corporation or the board committee, and (v) an entity in which a director, manager, administrator, principal officer or liquidator of the corporation, has acted in any of those capacities during the immediately previous 18 months.

A publicly-traded corporation may only enter into a related transaction when its aim is to contribute to the corporate general interests, its conditions are set at arm’s length and the corporation has followed the procedure indicated in the Chilean Corporations Act. The procedure to approve a related transaction can be summarized as follows: (i) the directors, managers, administrators, principal officers and liquidators involved in the potential transaction must give notice thereof to the board (these persons are obligated to disclose their interest in the transaction and their reasons to justify the convenience of the transaction for the corporation, both of which must be informed to the public), (ii) the absolute majority of the board, excluding any director involved in the transaction, must approve the transaction, (iii) the approval given by the board must be informed to the next shareholders’ meeting, (iv) if the directors involved in the transaction form the majority of the board, the transaction may only be approved by the unanimity of the remaining directors or by two-thirds of the issued voting shares in the corporation in a shareholders’ meeting, and (v) where the approval of the shareholders’ meeting is required, the board will request an independent appraiser to submit to the shareholders the conclusions regarding the conditions of the transaction.

Non-compliance with these rules does not invalidate the transaction, but the persons involved will be obligated to transfer the benefit accrued thereby from the transaction to the corporation and will be held liable for the potential damages suffered by the corporation. These rules apply to all publicly-traded corporations and to their subsidiaries, regardless of their corporate type.

We believe that we have complied with the applicable requirements of the Chilean Corporations Act in all transactions with related parties and affirm that we will continue to comply with such requirements.

As of December 31, 2013, 2014 and 2015, loans to related parties were as follows:

All loans to related parties were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present other unfavorable features. During 2013, 2014 and 2015, and in accordance with IFRS, the total gross amounts of related party loans outstanding amounted to Ch$435,106 million, Ch$272,962 million and Ch$284,941 million, respectively.

During 2013, 2014 and 2015, we had the following income (expenses) from services provided to (by) related parties:

These transactions were carried out on terms normally prevailing in the market at the date of the transaction.

We are involved in collections proceedings initiated by us in the normal course of business and certain proceedings against us in the ordinary course of banking business as disclosed in Note 22 to our audited consolidated financial statements included herein.

Pursuant to local regulation, on March 4th, 2016, the Court gave the SBIF a term to reply to CorpBanca’s claims. Such response was filed on March 17th, 2016.

Under the Chilean Corporations Act, Chilean open stock companies, such as ours, are generally required to distribute at least 30% of their net income each year, unless otherwise agreed by the unanimous consent of our shareholders. In the event of any loss of capital or of the legal reserve, no dividends can be distributed so long as such loss is not recovered from earnings or otherwise. No dividends above the legal minimum can be distributed if doing so would result in the bank exceeding its indebtedness ratio or its lending limits.

At our ordinary shareholders’ meeting held on March 11, 2016, our shareholders approved a new dividend policy for 2016 providing for the distribution of the 100% of the fiscal year’s net income, calculated as total net income for the period less an amount provisioned to comply with the Optimal Minimum Regulatory Capital, as this term is defined in the Shareholders’ Agreement. See Item 10. Additional Information—C. Material Contracts, Shareholders Agreement. Although our board of directors has adopted the aformentioned dividend policy for Corpbanca, the amount of dividend payments will depend upon, among other factors, our then current level of earnings, capital and legal reserve requirements, as well as market conditions, and there can be no assurance as to the amount or timing of future dividends. Our dividend policy was to distribute at least 50% of each fiscal year net income, calculated as total net income for the period less an amount which maintains capital constant in real terms until March 11, 2016. Dividend distributions in 2013, 2014 and 2015 each amounted to 50%, 57% and 50% of net income for the immediately preceding fiscal year, respectively.

In the event that dividends are paid, holders of ADSs will be entitled to receive dividends to the same extent as the owners of common shares. Dividends received by holders of ADSs will, absent changes in Chilean exchange controls or other laws, be converted into U.S. dollars and distributed net of currency exchange expenses and fees of the depositary and will be subject to Chilean withholding tax, currently imposed at the rate of 35% (which may be subject to credits in certain cases). Owners of ADSs are not charged with any fees with respect to cash or stock dividends.

There have been no significant changes since the date of our annual financial statements.

1)	Pesos per share reflect nominal price at trade date.

2)	Price per ADS in US$: one ADS represents 5,000 shares of common stock and 1,500 since March 2011.

3)	Information up to March 11, 2016

Set forth below is material information concerning our share capital and a brief summary of the significant provisions of our by-laws and Chilean law. This description contains material information concerning the shares, but does not purport to be complete and is qualified in its entirety by reference to our by-laws, the Chilean General Banking Act, the Chilean Corporations Act and the Chilean Securities Market Act each referred to below.

Shareholders rights in a Chilean bank that is also ~~an open-stock (public)~~a special corporation (sociedad anónima especial) subject to the regulations of open stock corporations (sociedades anónimas abiertasor Public Companies) are governed by the ~~corporation’s~~bank’s by-laws, which effectively serve the purpose of both the articles or certificate of incorporation and the by-laws of a company incorporated in the United States, by the Chilean General Banking ~~Law~~Act and secondarily, to the extent not inconsistent with the latter, by the provisions of Chilean Corporations ~~Law~~Act applicable to ~~publicly traded corporations~~Public Companies except for certain provisions which are expressly excluded. Article 137 of the Chilean Corporations ~~Law provides~~Act sets forth that all provisions of the Chilean Corporations ~~Law~~Act take precedence over any contrary provision in a corporation’s by-laws. Both the Chilean Corporations ~~Law~~Act and our by-laws provide that legal actions by shareholders against us (or our officers or directors) to enforce their rights as shareholders or by one shareholder against another in their capacity as such, are to be brought in Chile in arbitration proceedings, notwithstanding the plaintiff’s right to submit the action to the ordinary courts of Chile.

The Chilean securities markets are principally regulated by the SVS under the Chilean Securities Market ~~Law~~Act and the Chilean Corporations ~~Law.~~Act. In the case of banks, compliance with these laws is supervised by the SBIF. These two ~~laws~~acts provide for disclosure requirements, restrictions on insider trading and price manipulation and protection of minority investors. The Chilean Securities Market ~~Law~~Act sets forth requirements relating to public offerings, stock exchanges, stock brokers and dealers, and outlines disclosure requirements for companies that issue publicly offered securities. The Chilean Corporations ~~Law~~Act sets forth the rules and requirements for establishing ~~open stock corporations~~Public Companies while eliminating government supervision of closed (closely-held) corporations. ~~Open stock (public) corporations~~Public Companies are those that voluntarily, or are legally required to, register their shares in the Securities Registry.

~~The Board~~Our board of ~~Directors~~directors has nine regular members and two alternate members, elected by shareholders’ vote at ~~General Shareholders’ Meetings.~~ordinary shareholders’ meetings. The directors may be either shareholders or non-shareholders of the Company. There is no age limit for directors.

A director remains in office for three years and may be re-elected indefinitely. If for any reason, the ~~General Shareholders’ Meeting~~ordinary shareholders’ meeting in which the new appointments of directors are to be made is not held, the duties of those serving as such shall be extended until their replacements are designated, in which case, the ~~Board~~board of ~~Directors~~directors shall convene a meeting at the earliest possible time in order to effect the appointments.

The directors are entitled to compensation for the performance of their duties. The amount of their compensation is determined annually at the ~~General Shareholders’ Meeting.~~ordinary shareholders’ meeting. In addition, payments in the form of wages, fees, travel accounts, expense accounts, dues as representatives of the ~~Board~~board of ~~Directors~~directors and other cash payments, payments in kind or royalties of any sort whatsoever, may be paid to certain directors for the performance of specific duties or tasks in addition to their functions as directors imposed upon them specifically by the ~~General Shareholders’ Meeting.~~ordinary shareholders’ meeting. Any special compensation must be reported at the ~~General Shareholders’ Meeting,~~ordinary shareholders’ meeting, and for that purpose, a detailed and separate entry shall be made in our ~~Annual Report~~annual report to investors, which shall expressly indicate the complete name of each of the directors receiving special compensation.

Without prejudice to any other incapacity or incompatibility established by the Chilean Corporations ~~Law,~~Act, according to the Chilean General Banking ~~Law,~~Act, the following may not be directors: (i) those persons who have been sentenced or are being tried for crimes punishable with a principal or accessory penalty of temporary or permanent suspension from or incapacity to hold public office, (ii) those persons who have been declared bankrupt and have not been rehabilitated, (iii) members of the Chilean Congress, (iv) directors or employees of any other financial institutions, brokers and security traders, together with its directors, officers, executives and managers; employees appointed by the President of ~~the~~ Chile and employees or officers of (x) the State, (y) any public service, public institution, semi-public institution, autonomous entity or state-controlled company, or any such entity, a Public Entity, or (z) any enterprise, corporation or public or private entity in which the State or a Public Entity has a majority interest, has made capital contributions, or is represented or participating, provided that persons holding positions in teaching activities in any of the above entities may be directors, and (v) the bank’s employees, which shall not prevent a director from holding on a temporary basis and for a term not to exceed ninety days the position of ~~General Manager.~~manager. The CEO may not be elected as a director.

For purposes of the election of directors, each shareholder shall have the right to one vote per share for purposes of electing a single person, or to distribute his votes among candidates as he or she may deem convenient, and the persons obtaining the largest number of votes in the same and single process shall be awarded positions, until all positions have been filled. The ~~election~~elections of ~~the~~ regular and alternate board members are carried out separately. For purposes of casting votes, the ~~Chairman~~chairman and the ~~Secretary,~~secretary, together with any other persons that may have been previously designated by at the meeting to sign the minutes thereof, shall issue a certificate giving evidence of the oral votes of shareholders attending, following the order of the list of attendance being taken.

Each shareholder is entitled ~~however,~~ to cast his or her vote by means of a ballot signed by him or her, stating whether he or she signs for his own account or as a representative. This entitlement notwithstanding, in order to expedite the voting process, it can be ordered that the vote be taken alternatively or by oral vote or by means of ballots. At the time of polling, the ~~Chairman~~chairman may instruct that the votes be read aloud, in order for those in attendance to count the number of votes issued and verify the outcome of the voting process.

Every election of directors, or any changes in the election of directors, shall be transcribed into a public deed before a notary public, published in a newspaper of Santiago and notified to the SBIF by means of the filing of a copy of the respective public deed. Likewise, the appointments of ~~General Manager, Manager~~general manager, manager and ~~Deputy Managers~~deputy managers shall be communicated and transcribed into a public deed.

If a director ceases to be able to perform his or her duties, whether by reason of conflict of interest, limitation, legal incapacity, impossibility, resignation or any other legal cause, the vacancy is filled as follows: (i) the positions of regular ~~directors~~director is filled by a member appointed by the ~~Board~~board of ~~Directors~~directors on its first meeting after the vacancy occurs and such member appointed by the ~~Board~~board of ~~Directors~~directors will remain in the position until the next ~~General Shareholders’ Meeting,~~ordinary shareholders’ meeting, where the appointment may be ratified, in which case, the replacement director will remain in his or her position until the expiration of the term of the director he or she replaced and act as full director; and (ii) while the vacancy has not been filled by the ~~Board~~board of ~~Directors,~~directors, an alternate director shall act as regular member.

The alternate directors may temporarily replace regular directors in case of their absence or temporary inability to attend a board meeting. Alternate board members are always entitled to attend and speak at board meetings. They are entitled to vote at such meetings only when a regular member is absent and such alternate member acts as the absent member’s replacement.

During the first meeting following the ~~General Shareholders’ Meeting,~~ordinary shareholders’ meeting, the ~~Board~~board of ~~Directors~~directors elects, by an absolute majority and in separate and secret votes, from among its members, a ~~Chairman,~~chairman, a ~~First Vice Chairman~~first vice chairman and a ~~Second Vice Chairman.~~second vice chairman. If no director obtains such majority, the election is repeated among those three directors who obtained the most votes, adding any blank votes to the person who obtained the greatest number of votes. In case of a tie, the vote is repeated and, if a tie were to occur again, there is a drawing. The ~~Chairman,~~chairman, the ~~First Vice President~~first vice president and the ~~Second Vice President~~second vice president may be reelected indefinitely.

The ~~Board~~board of ~~Directors~~directors meets in ordinary sessions at least once a month, held on pre-set dates and times determined by the ~~Board.~~board. Extraordinary meetings are held whenever called by the ~~Chairman,~~chairman, whether at his own will or upon the request of one or more directors, so long as the ~~Chairman~~chairman determines in advance that the meeting is justified, except if the request is made by the absolute majority of the directors in office, in which case the meeting shall be held without such prior determination. The extraordinary meetings may only address those matters specifically included in the agenda for the extraordinary meeting, except that, if the meeting is attended by all the directors in office, they may agree otherwise by a unanimous vote. Notifications of meetings of the ~~Board~~board of ~~Directors~~directors shall be made by certified letter sent to the ~~addressed~~address of each director registered with the bank, at least five days in advance of the date on which the ordinary or extraordinary session should be held. The five-day period shall be calculated from the date on which the letter is placed in the mail.

The quorum for the ~~Board~~board of ~~Directors’ Meeting~~directors’ meeting is majority of its members in office, this is five ~~of its members.~~directors. Resolutions shall be adopted by the affirmative vote of the absolute majority of the attending directors. In the event of a tie, the person acting as the ~~Chairman~~chairman of the meeting shall ~~cast~~have a ~~deciding~~casting vote.

Directors having a vested interest in a negotiation, act, contract or transaction that is not related to the bank business, either as principal or as representative of another person, shall communicate such fact to the other directors. If the respective resolutions are approved by the ~~Board,~~board, it shall be in accordance with the prevailing company’s interest and fair market conditions and such director’s interest must be disclosed at the next ~~General Shareholders’ Meeting~~ordinary shareholders’ meeting by the ~~Chairman~~chairman of such ~~Board~~board meeting.

The discussions and resolutions of the ~~Board~~board of ~~Directors~~directors shall be recorded in a special book of minutes maintained by the ~~Secretary.~~secretary. The relevant minutes shall be signed by the directors ~~attending~~that attended the ~~meeting and by the Board of Directors, or their alternates.~~relevant meeting. If a director determines that the minutes for a meeting are inaccurate or incomplete, he or she is entitled to record an objection before actually signing the minutes. The minutes shall be deemed approved as from the moment it is signed by all the directors that attended such meeting and all the resolutions adopted may be carried out ~~prior to~~upon the approval. However, by unanimous consent of the directors that attended the meeting, the resolutions adopted by the board may be carried out before the approval of the minutes, atprovided that the agreement is recorded in a ~~subsequent meeting.~~written document signed by all the relevant directors. In the event of death, refusal or incapacity for any reason of any of the directors attending to sign the minutes, such circumstance shall be recorded at the end of the minutes stating the reason for the impediment.

The directors are personally liable for all of the acts they effect in the performance of their duties. Any director who wishes to disclaim responsibility for any act or resolution of the ~~Board~~board of ~~Directors~~directors must record his or her opposition in the minutes, and the ~~Chairman~~chairman must report such opposition at the following ~~General Shareholders’ Meeting.~~ordinary shareholders’ meeting.

The ~~Board~~board will represent us in and out of court and, for the performance of the bank’s business, a circumstance that will not be necessary to prove before third parties, it will be empowered with all the authorities and powers of administration that the law or the by-laws do not set as exclusive to the ~~General Shareholders’ Meeting,~~ordinary shareholders’ meeting, without being necessary to grant any special power of attorney, even for those acts that the law requires to do so. This provision is notwithstanding the judicial representation of the bank that is part of the ~~General Manager’s~~general manager’s authorities. The ~~Board~~board may delegate part of its authority to the ~~General Manager,~~general manager, to the ~~Managers, Deputy Managers~~managers, deputy managers or ~~Attorneys~~attorneys of the bank, a ~~Director,~~director, a ~~Commission~~commission of ~~Directors,~~directors, and for specifically determined purposes, in other persons.

Under Chilean law, the shareholders of a bank, acting at an extraordinary shareholders’ meeting, have the power to authorize an increase in such company’s capital with the authorization of the SBIF. When an investor subscribes for issued shares, the shares are registered in such investor’s name, even if not paid for, and the investor is treated as a shareholder for all purposes except with regard to receipt of dividends and the return of capital; provided that the shareholders may, by amending the ~~By-laws,~~by-laws, also grant

the right to receive dividends or distributions of capital. An investor becomes eligible to receive dividends and returns of capital once it has paid for the shares (if it has paid for only a portion of such shares, it is entitled to receive a corresponding pro-rata portion of the dividends declared and/or returns of capital with respect to such shares unless the company’s ~~By-laws~~by-laws provide otherwise). If an investor does not pay for shares for which it has subscribed on or prior to the date agreed upon for payment, the ~~corresponding~~ board of directors is obligated to initiate legal action to recover outstanding amounts unless holders of two-thirds of the issued shares in an extraordinary shareholders meeting authorizes the board of directors to refrain from pursuing the collection, in which case the company’s capital will be reduced to the amount actually paid. Upon termination of the actions for collection, the board of directors shall propose to the shareholders meeting the write-off of the non-paid amount and the reduction of the capital of the company to the amount effectively paid in. Authorized shares and issued shares which have not been subscribed and paid for within the period fixed for their payment are cancelled and are no longer available for issuance by the company, unless in case of an issuance of convertible bonds or when reserved for compensation plans for employees.

Article 22 of Chilean Corporations ~~Law~~Act states that the purchaser of shares of a company implicitly accepts its by-laws and any agreements adopted at shareholders’ meetings.

Under Article 12 of the Chilean Securities Market ~~Law~~Act and the Regulations of the SBIF, shareholders of ~~open stock corporations~~Public Companies are required to report the following to the SVS and the Chilean stock exchanges:

any direct or indirect acquisition or sale of shares that results in the holder’s acquiring or ceasing to own, directly or indirectly, 10% or more of ~~an open stock corporation’s~~a Public Company’s share capital; and

any direct or indirect acquisition or sale of shares or options to buy or sell shares, in any amount, if made by a holder of 10% or more of ~~an open stock corporation’s~~a Public Company’s capital or if made by a director, liquidator, main officer, general manager or manager of such corporation.

The foregoing requirements also apply to the acquisition or sale of securities or agreements which price or return depends or is conditioned (all or in a significant part) on changes or movements in the price of such shares. Such report shall be made the day following the execution of the transaction.

In addition, majority shareholders must state in any such report whether their purpose is to acquire control of the company or if they are making a financial investment. Any beneficial owner of ADSs representing 10% or more of our share capital is subject to these reporting requirements under Chilean law. The Chilean Securities Market Act also sets forth certain regulations on takeovers of corporations.

Under Article 54 of the Chilean Securities Market ~~Law~~Act and the regulations of the SVS, persons or entities intending to acquire control, directly or indirectly, of a ~~publicly traded company,~~Public Company, regardless of the acquisition vehicle or procedure, and including acquisitions made through direct subscriptions or private transactions, are also required to inform the public of such acquisition at least ten business days before the date of perfection of the acts which allow to obtain control of the company, but in any case, as soon as negotiations regarding the change of control are formalized and/or as soon as reserved information and/or documents concerning the target are delivered to the potential acquirer through a filing with the SVS, the stock exchanges and the companies controlled by and that control the target and through a notice published in two Chilean newspapers, which notice must disclose, among other information, the person or entity purchasing or selling and the price and conditions of any negotiations.

Within the same term, a written communication to such effect must be sent to the target corporation, the controlling corporation, the corporations controlled by the target corporation, the SVS, and to the Chilean stock exchanges on which the securities are listed.

In addition to the foregoing, Article 54A of the Chilean Securities Market ~~Law~~Act requires that within two business days of the completion of the transactions pursuant to which a person has acquired control of a ~~publicly traded company,~~Public Company, a notice shall be published in the same newspapers in which the notice referred to above was published and notices shall be sent to the same persons mentioned in the preceding paragraphs.

A beneficial owner of ADSs intending to acquire control of us is also subject to the foregoing reporting requirements.

The provisions of the aforementioned articles do not apply whenever the acquisition is being made through a tender or exchange offer.

Title XXV of the Chilean Securities Market ~~Law~~Act on tender offers and the regulations of the SVS ~~provides~~provide that the following transactions shall be carried out through a tender offer:

an offer which allows a person to take control of a Public Company;

an offer for all the outstanding shares of a Public Company upon acquiring two-thirds or more of its voting shares, in which case such controlling shareholder must offer to purchase the remaining shares from the investing shareholders in a tender offer, unless (i) the controlling shareholder has reached two-thirds of the voting shares through a tender offer for all of the shares of the company or due to any of the situations exempted, or (ii) it reaches such percentage as a result of a reduction of the capital of the company by operation of law: such offer must be made at a price not lower than the price at which appraisal rights may be exercised, that is, book value if the shares of the company are not actively traded or, if the shares of the company are actively traded, the weighted average price at which the stock has been traded during the 60 stock exchange business days between the thirtieth and the ninetieth stock exchange business days immediately preceding the acquisition; and

an offer for a controlling percentage of the shares of a listed operating company if such person intends to take control of the company (whether listed or not) controlling such operating company, to the extent that the operating company represents 75% or more of the consolidated net worth of the holding company.

Nevertheless, the following exceptions are applicable to all the cases described above (i) the shares are being sold by a controlling shareholder of such company at a price in cash which is not substantially higher than the market price and the shares of such company are actively traded on a stock exchange, or (ii) those shares are acquired (a) through a capital increase, (b) as a consequence of a merger, (c) by inheritance, or (d) through a forced sale.

Article 200 of the Chilean Securities Market ~~Law~~Act prohibits any shareholder that has taken control of a ~~publicly traded company~~Public Company to acquire, within the period of 12 months from the date of the transaction that permitted such shareholder to take control of the ~~publicly traded company,~~Public Company, a number of shares equal to or higher than 3% of the outstanding issued shares of the target without making a tender offer at a price per share not lower than the price paid at the time of the change of control transaction. However, if the acquisition is made on a stock exchange and on a pro rata basis, the controlling shareholder may purchase a higher percentage of shares, if so permitted by the regulations of the stock exchange.

Title XV of the Chilean Securities Market ~~Law~~Act sets forth the basis to determine what constitutes control of a business group and a related party while Title XXV establishes a special procedure for acquiring control of ~~an open stock corporation~~a Public Company through a tender offer. The Chilean Securities Market ~~Law~~Act defines control as the power of a person, or group of persons acting pursuant to a joint action agreement, to direct the majority of the votes in the shareholders meetings of the corporation, or to elect the majority of members of its board of directors, or to influence the management of the corporation significantly. Significant influence is deemed to exist in respect of the person or group of persons acting together pursuant to a joint action agreement holding, directly or indirectly, at least 25% of the voting share capital, unless:

another person or group of persons acting pursuant to a joint action agreement, directly or indirectly, control a stake equal to or higher than the percentage controlled by such person or group;

the person or group does not control, directly or indirectly, more than 40% of the voting share capital and the percentage controlled is lower than the sum of the shares held by other shareholders holding more than 5% of the voting share capital; and

in cases where the SVS has ruled otherwise, based on the distribution or atomization of the overall shareholding.

According to the Chilean Securities Market ~~Law,~~Act, a joint action agreement is an agreement among two or more parties which, directly or indirectly, own shares in a corporation at the same time and whereby they agree to participate with the same interest in the management of the corporation or in taking control of the same. The law presumes that such an agreement exists between:

a principal and its agents;

spouses and relatives up to certain level of kindred;

entities within the same business group; and

an entity and its controller or any of its members.

Likewise, the SVS may determine that a joint action agreement exists between two or more entities considering, among others, the number of companies in which they simultaneously participate and the frequency with which they vote identically in the election of directors, appointment of managers and other resolutions passed at shareholders’ meetings.

According to Article 96 of the Chilean Securities Market ~~Law,~~Act, a business group is a group of entities with such ties in their ownership, management or credit liabilities that it may be assumed that the economic and financial action of such members is directed by, or subordinated to, the joint interests of the group, or that there are common credit risks in the credits granted to, or securities issued by, them. According to the Chilean Securities Market ~~Law,~~Act, the following entities are part of the same business group:

a company and its controlling person;

all the companies with a common controlling person and the common controlling person; and

all the entities that the SVS declare to be part of the business group due to one or more of the following reasons:

a substantial part of the assets of the company are involved in the business group, whether as investments in securities, equity rights, loans or guaranties;

the company has a significant level of indebtedness and that the business group has a material participation as a lender or guarantor;

when the controller is a group of entities, that the company is a member of a controlling person of the entities mentioned in the first two bullets above and there are grounds to include it in the business group based on the definitions above; and

the company is controlled by one or more member of the controlling group of any of the entities of the business group, when such controller is composed of more than one person and there are grounds to include the company in the business group based on the definition above.

Article 36 of the Chilean General Banking ~~Law~~Act states that as a matter of public policy, no person or company may acquire, directly or indirectly, shares that alone or jointly with the shares previously owned by it, represent more than 10% of the shares of a bank without the prior authorization of the SBIF, which may not be unreasonably withheld. The prohibition also applies to beneficial owners of ADSs. In the absence of such authorization, any person or group of persons acting in concert would not be permitted to exercise voting rights with respect to the shares or ADSs acquired. In determining whether or not to issue such an authorization, the SBIF considers a number of factors enumerated in the Chilean General Banking ~~Law,~~Act, including the financial stability of the purchasing party.

Article 35bis of the Chilean General Banking ~~Law~~Act establishes that prior authorization of the SBIF is required for:

the merger of two or more banks;

the acquisition of all or a substantial portion (more than one third) of a bank’s assets and liabilities by another bank;

the control by the same person, or controlling group, of two or more banks; or

a substantial increase in the share ownership by a controlling shareholder of a bank ~~in conditions whereby the acquirer or the group of banks reach a relevant participation in the market~~ (understood as either acquiring a majority or two thirds of the bank’s shares).

Such prior authorization is required solely when the acquiring bank or the resulting group of banks would own a significant market share in loans (colocaciones), defined by the SBIF to be more than 15% of all loans in the Chilean banking system. The intended purchase, merger or expansion may be denied by the SBIF pursuant to a report from the Chilean Central Bank’s Counsel. Alternatively, a purchase, merger or expansion, when the acquiring bank or resulting group would have a market share in loans defined by the SBIF to be more than 20% of all loans in the Chilean banking system, may be conditioned on one or more of the following:

that the bank or banks maintain an effective net equity higher than 8% and up to 14% of their risk weighted assets;

that the technical reserve established in Article 65 of the Chilean General Banking ~~Law~~Act be applicable when deposits exceed one and a half times the resulting bank’s effective net equity (which is the sum of (x) paid-in capital and reserves, plus (y) subordinated bonds up to 50% of letter (x) above under certain terms, plus (z) certain effective risk voluntary reserves up to 1.25% of its risk weighted assets); or

that the margin for interbank loans be diminished to 20% of resulting bank’s effective net equity.

If the acquiring bank or resulting group would have a market share in loans defined by the SBIF to be more than 15% but less than 20%, the authorization will be conditioned on the bank or banks maintaining an effective net equity not lower than 10% of their risk-weighted assets for the time set forth by the SBIF, which may not be less than one year. The calculation of risk-weighted assets is based on a five-category risk classification system applied to a bank’s assets that is based on the Basel Committee recommendations.

According to the Chilean General Banking ~~Law~~Act a bank may not grant loans to related parties on more favorable terms than those generally offered to non-related parties. Article 84 No. 2 of the Chilean General Banking ~~Law~~Act and the ~~regulations issued by~~Regulations of the SBIF create the presumption, among other cases, that natural persons who are holders of shares and who beneficially own more than 1% of the shares (or 5% in the case of bank’s shares actively traded) are related to the bank and imposes certain restrictions on the amounts and terms of loans made by banks to related parties. This presumption would also apply to beneficial owners of ADSs representing more than 1% of the shares, and accordingly the limitations of Article 84 No. 2 would be applicable to such beneficial owners. Finally, according to the Regulations of the SBIF, Chilean banks that issue ADSs are required to inform the SBIF if any person, directly or indirectly, acquires ADSs representing 5% or more of the total amount of shares of capital stock issued by such bank.

Article 16bis of the Chilean General Banking ~~Law~~Act provides that the individuals or legal entities which, individually or with other people, directly control a bank and who individually own more than 10% of its shares shall send to the SBIF reliable information on their financial situation in the form and within the time set forth in ~~Resolution No. 3,156~~Chapter 1-3 of the ~~SBIF.~~regulations of the SBIF (Recopilación Actualizada de Normas). Also, controlling shareholders must submit information regarding their financial situation pursuant to Chapter 1-17 of said regulations.

The Chilean Corporations ~~Law~~Act provides that whenever a Chilean company issues new shares for consideration, it must offer to its existing shareholders the right to purchase a sufficient number of shares to maintain their existing ownership percentages in the company. Pursuant to this requirement, preemptive rights in connection with any future ~~issue~~issuance of shares will be offered by us to the depositary as the registered owner of the shares underlying the ADSs. However, the depositary will not be able to make such preemptive rights available to holders of ADSs unless a registration statement under the Securities Act is effective with respect to the underlying shares or an exemption from the registration requirements thereunder is available.

We intend to evaluate, at the time of any preemptive rights offering, the practicality under Chilean law and Central Bank of Chile regulations in effect at the time of making such rights available to our ADS holders, as well as the costs and potential liabilities associated with registration of such rights and the related common shares under the Securities Act, and the indirect benefits to us of thereby enabling the exercise by all or certain holders of ADSs of their preemptive rights and any other factors we consider appropriate at the time, and then to make a decision as to whether to file such registration statement. We cannot assure you that any registration statement would be filed. If we do not file a registration statement and no exemption from the registration requirements under the Securities Act is available, the depositary will attempt to sell such holders’ preemptive rights and distribute the proceeds thereof, after deduction of its expenses and fees, if a premium can be

recognized over the cost of such sale. In the event that the depositary is not able, or determines that it is not feasible, to sell such rights at a premium over the cost of any such sale, all or certain holders of ADSs may receive no value for such rights. The inability of all or certain holders of ADSs to exercise preemptive rights in respect of common shares underlying such ADSs could result in such holders not maintaining their percentage ownership of the common shares following such preemptive rights offering unless such holder made additional market purchases of ADSs or common shares.

Under Chilean law, preemptive rights are exercisable or freely transferable by shareholders during a period that cannot be less than 30 days following the grant of such rights. During such period (except for shares as to which preemptive rights have been waived), Chilean ~~open stock corporations~~Public Companies are not permitted to offer any newly issued shares for sale to any third party. For an additional 30-day period thereafter, a Chilean company is not permitted to offer any unsubscribed shares for sale to third parties on terms which are more favorable than those offered to its shareholders. Thereafter, unsubscribed shares may be offered through any Chilean stock exchange without any indication of price. Unsubscribed shares that are not sold on a Chilean stock exchange can be sold to third parties only on terms no more favorable for the purchaser than those offered to shareholders.

At the extraordinary shareholders meeting held on November 6, 2012, CorpBanca’s shareholders approved a proposal by the Board of Directors to (i) cancel the common shares that were authorized pursuant to the terms agreed to at the extraordinary shareholders meeting held on April 10, 2012 but were not subscribed, and (ii) approved a capital increase in the amount of 47,000,000,000 common shares. On November 27, 2012, the Board of Directors authorized the issuance of 47,000,000,000 common shares.

The common shares were sold in (i) a registered offering in the United States and elsewhere outside of Chile on January 18, 2013, (ii) a local offering in Chile on January 18, 2013 and (iii) a preferential offering period beginning on January 16, 2013 and ending on February 14, 2013. CorpBanca’s shareholders subscribed approximately 99% of the newly issued shares.

An ordinary annual meeting of shareholders is held within the first four months of each year, generally in ~~February~~March and must be called by the ~~Board~~board of ~~Directors.~~directors. The ordinary annual meeting of shareholders is the corporate body that approves the annual financial statements, approves all dividends in accordance with the dividend policy proposed by the ~~Board~~board of ~~Directors,~~directors, elects the

members of our ~~Board~~board of ~~Directors~~directors and approves any other matter which does not require an extraordinary shareholders’ meeting. The last ordinary annual meeting of our shareholders was held on March ~~12, 2015.~~11, 2016.

Extraordinary meetings may be called by our ~~Board~~board of ~~Directors~~directors when deemed appropriate, and ordinary or extraordinary meetings must be called by our ~~Board~~board of ~~Directors~~directors when requested by shareholders representing at least 10% of the issued voting shares or by the SBIF. Notice to convene the ordinary annual meeting or an extraordinary meeting is given by means of ~~three notices~~written notice which must be published at least three different days in a newspaper of our corporate domicile (currently Santiago) designated by the shareholders at their annual meeting and if a shareholder fails to make such designation, the notice must be published in the Official Gazette pursuant to legal regulations. The first notice must be published not less than 15 days nor more than 20 days in advance of the scheduled meeting. Notice must also be mailed 15 days in advance to each shareholder and to the SBIF, SVS and the Santiago, Valparaiso and Electronic Stock Exchanges. Currently, we publish our official notices in the Diario ~~La Tercera.~~El Pulso.

The quorum for a shareholders’ meeting is established by the presence, in person or by proxy, of shareholders representing at least an absolute majority of the issued common shares; if a quorum is not present at the first meeting, the meeting can be reconvened (in accordance with the procedures described in the previous paragraph) and, upon the meeting being reconvened, shareholders present at the reconvened meeting are deemed to constitute a quorum regardless of the percentage of the shares represented. The shareholders’ meetings pass resolutions by the affirmative vote of an absolute majority of those voting shares present or represented at the meeting.

Only shareholders registered with us on the fifth day prior to the date of a meeting are entitled to attend and vote their shares. A shareholder may appoint another individual (who need not be a shareholder) as his proxy to attend and vote on his behalf. Proxies addressed to us that do not designate a person to exercise the proxy are taken into account in order to determine if there is a sufficient quorum to hold the meeting, but the shares represented thereby are not entitled to vote at the meeting. Every shareholder entitled to attend and vote at a shareholders’ meeting has one vote for every share subscribed. Under our by-laws, directors are elected by cumulative voting. Each shareholder has one vote per share and may cast all of his or her votes in favor of one nominee or may apportion is or her votes among any number of nominees.

The following matters can only be ~~considered~~agreed upon at ~~a special~~an extraordinary shareholders’ meeting:

a merger, transformation, division or other change in our corporate form or the amendment of our by-laws;

the issuance of bonds or debentures convertible into shares;

the conveyance of 50% or more of our assets or the submission of, or changes to any business plan that contemplates the sale of more than 50% of the assets of the company;

the conveyance of 50% or more of the assets of a subsidiary, if represent at least 20% of our total assets, and any transfer of shares of a subsidiary that implies the Company loses control of such subsidiary;

granting of a security interest or a personal guarantee in each case to secure the obligations of third parties, unless (i) to secure or guarantee the obligations of a subsidiary, in which case the approval of the ~~Board~~board of ~~Directors~~directors will suffice (although this restriction is not applicable to banks: (a) granting sureties, (b) becoming jointly and/or jointly and severally liable with clients or (c) issuing bank guarantees within their course of business) and (ii) in those cases exempted by the Chilean General Banking ~~Law;~~Act; and

other matters that require shareholder approval according to Chilean law or our by-laws.

The matters referred to in the first five items listed above may only be approved at a meeting held before a notary public, who shall certify that the minutes are a true record of the events and resolutions of the meeting.

The by-laws establish that resolutions are passed at shareholders’ meetings by the affirmative vote of an absolute majority of those shares present or represented at the meeting. However, under the Chilean Corporations ~~Law,~~Act, the vote of a two-thirds majority of the outstanding voting shares is required to approve any of the following actions:

a change in corporate form, merger or spin-off;

an amendment to our term of existence or early dissolution;

a change in corporate domicile;

a decrease of corporate capital;

the approval of capital contributions in kind and a valuation of the assets contributed;

a modification of the authority reserved for the shareholders’ meetings or limitations on the powers of our ~~Board~~board of ~~Directors;~~directors;

a reduction in the number of members of our ~~Board~~board of ~~Directors;~~directors;

the conveyance of 50% or more of the corporate assets, regardless of whether it includes liabilities, or the submission of or change to any business plan that contemplates the conveyance of 50% or more of the corporate assets;

the conveyance of 50% or more of the assets of a subsidiary, if those assets represent at least 20% of our total assets, and any transfer of shares of a subsidiary that implies the Company loses control of such subsidiary;

the manner in which the corporation’s profits shall be distributed;

the creation of security interests to secure third-party obligations in excess of 50% of the corporate assets, unless granted to a subsidiary or when exempted by the Chilean General Banking ~~Law~~Act (although this restriction is not applicable to banks: (i) granting sureties, (ii) becoming jointly and/or jointly and severally liable with clients or (iii) issuing bank guarantees within their course of business);

the acquisition of our own shares, when, and or the terms and conditions permitted by law;

the cure of formal defects in the incorporation of the corporation or an amendment to its by-laws related to any of the matters referred to in the preceding bullets;

to establish the right of the controller to force other shareholders to sell their shares in case the controller has surpassed 95% of the shares of the company as a result of a tender offer for 100% of its shares under certain circumstances;

the approval of material related-party transactions according to Article 147 of the Chilean Corporations ~~Law;~~Act; or

all other matters provided for in our by-laws.

An amendment of our by-laws aimed at the creation, modification, renewal or suppression of preferences, must be approved with the favorable vote of two-thirds majority of the shares of the affected series.

In general, Chilean law does not require a Chilean ~~open stock corporation~~Public Company to provide the level and type of information that U.S. securities laws require a reporting company to provide to its shareholders in connection with a solicitation of proxies. However, shareholders are entitled to examine the books of the company within the 15-day period before the ordinary annual meeting. Under Chilean law, a notice of a shareholders’ meeting listing matters to be addressed at the meeting must be mailed not fewer than 15 days prior to the date of such meeting, and, in cases of an ordinary annual meeting, shareholders must have available an annual report of the company’s activities which includes audited financial statements. In addition to these requirements, we regularly provide, and management currently intends to continue to provide, together with the notice of shareholders’ meeting, a proposal for the final annual dividend.

The Chilean Corporations ~~Law~~Act provides that whenever shareholders representing 10% or more of the issued voting shares so request, a Chilean company’s annual report must include, in addition to the materials provided by the board of directors to shareholders, such shareholders’ comments and proposals in relation to the company’s affairs. Similarly, the Chilean Corporations ~~Law~~Act provides that whenever the board of directors of ~~an open stock corporation~~a Public Company convenes an ordinary meeting of the shareholders and solicits proxies for that meeting, or distributes information supporting its decisions, or other similar material, it is obligated to include as an annex to its said materials any pertinent comments and proposals that may have been made by shareholders owning 10% or more of the company’s voting shares who have requested that such comments and proposals be so included.

Under the Chilean Corporations ~~Law,~~Act, Chilean companies are generally required to distribute at least 30% of their earnings as ~~dividends.~~dividends, unless there is unanimous consent to the contrary. In the event of any loss of capital or of the legal reserve, no dividends can be distributed so long as such loss is not recovered. Also, no dividends of a bank can be distributed if doing so would result in the bank exceeding certain capital ratios.

Dividends that are declared but not paid by the date set for payment at the time of declaration are adjusted from the date set for payment to the date such dividends are actually paid. The right to receive ~~a dividend~~dividends lapses if it is not claimed within five years from the date the dividend is payable.

We may declare a dividend in cash or in shares. When a share dividend is declared above the legal minimum (which minimum must be paid in cash), our shareholders must be given the option to elect to receive cash. Our ADS holders may, in the absence of an effective registration statement under the Securities Act or an available exemption from the registration requirement thereunder, effectively be required to receive a dividend in cash.

In the event of our liquidation, the holders of fully paid shares would participate equally and ratably, in proportion to the number of paid-in shares held by them, in the assets available after payment of all creditors.

In accordance with the Chilean General Banking ~~Law,~~Act, our shareholders have no appraisal rights.

Our ~~Board~~board of ~~Directors~~directors is required to submit our audited financial statements to the shareholders annually for their approval at the ~~Ordinary General Shareholders Meeting.~~ordinary shareholders meeting. The approval or rejection of such financial statements is entirely within our shareholders’ discretion. If our shareholders reject our financial statements, our ~~Board~~board of ~~Directors~~directors must submit new financial statements not later than 60 days from the date of such rejection. If our shareholders reject our new financial statements, our entire ~~Board~~board of ~~Directors~~directors is deemed removed from office and a new ~~Board~~board of ~~Directors~~directors is elected at the same meeting. Directors who individually approved such rejected financial statements are disqualified for re-election for the ensuing period.

Our common shares are registered by an administration agent named DCV Registros S.A. This entity is responsible for our shareholders’ registry. In the case of jointly owned common shares, an attorney-in-fact must be appointed to represent the joint owners in dealings with us.

The following is a brief summary of our material contracts currently in force. A copy of each of these contracts has been included as an exhibit hereto. See “Item 19. Exhibits”.

This section describes the material terms of (i) the Transaction Agreement executed by CorpBanca, CorpGroup Parent, Itaú Unibanco and Itaú Chile on January 29, ~~2014;~~2014 and amended on June 2, 2015; and (ii) the text of the Shareholders’ Agreement contemplated by the Transaction Agreement to be executed by Interhold, Gasa, Compañía Inmobiliaria y de Inversiones Saga SpA, Corp Group Holding Inversiones Ltda., Itaú Unibanco and an entity through which Itaú Unibanco may hold their interest in Itaú-CorpBanca, which has not yet been created, on the closing date of the ~~Transaction.~~Itaú-CorpBanca Merger.

The rights and obligations of the parties to the Transaction Agreement and the Shareholders’ Agreement are governed by the express terms and conditions of such agreement and not by this summary or any other information contained in this Form 20-F. The description in this section and elsewhere in this Form 20-F is qualified in its entirety by reference to the complete text of the Transaction Agreement and the form of Shareholders’ Agreement, copies of which are attached as Exhibit 10.C.1 and are incorporated by reference herein. This summary does not purport to be complete and may not contain all of the information about the Transaction Agreement or the Shareholders’ Agreement. CorpBanca encourages you to read the Transaction Agreement and the Shareholders’ Agreement carefully and in their entirety.

Additionally, we note that the Shareholders’ Agreement has not been executed, and is not, as of the date hereof, in full force or effect. TeThe Shareholders’ Agreement will be executed by the parties thereto concurrently with the closing of the Itaú-CorpBanca Merger, subject to any changes and modifications, if any, as may be agreed to by the parties to the Shareholders’ Agreement

Capitalized terms used but not defined herein shall have the same meaning as in the Transaction Agreement or the Shareholders’ Agreement, as applicable.

The following summary is included to provide you with information regarding the terms of the Transaction Agreement. This section is not intended to provide you with any factual information about CorpBanca. Such information can be found elsewhere in this Form 20-F and in the public filings that CorpBanca makes with the SEC.

The representations, warranties and covenants made in the Transaction Agreement by CorpBanca and Itaú Chile were qualified and subject to important limitations agreed to by CorpBanca and Itaú Chile in connection with negotiating the terms of the Transaction Agreement. In particular, in your review of the representations and warranties contained in the Transaction Agreement and described in this summary, it is important to bear in mind that the representations and warranties were negotiated with the principal purpose of establishing the circumstances in which a party to the Transaction Agreement may have the right not to consummate the Itaú-CorpBanca Merger if the representations and warranties of the other party proved to be untrue due to a change in circumstance or otherwise, and allocating risk between the parties to the Transaction Agreement, rather than establishing matters as facts. The representations and warranties are also subject to a contractual standard of materiality and in some cases were qualified by the matters contained in the disclosure schedules that CorpBanca and Itaú Chile delivered in connection with the Transaction Agreement. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the Transaction Agreement, which subsequent information may or may not be fully reflected in public disclosures by Itaú Unibanco or CorpBanca. The representations and warranties and other provisions in the Transaction Agreement should not be read alone but instead together with the information provided elsewhere in this Form 20-F and in the documents incorporated by reference hereto. We may refer to January 29, 2014, the date that the parties entered into the Transaction Agreement, as the signing date.

To help you better understand the Itaú-CorpBanca Merger and the other transactions contemplated by the Transaction Agreement the charts below illustrate, in simplified form, the organizational structure of CorpBanca and Itaú Chile in Chile and Colombia.

The divestiture by CorpGroup Parent of a number of shares it holds, directly or indirectly, in CorpBanca which, collectively, amount to 1.53% of the capital stock of CorpBanca. Such shares shall be divested to third parties other than CorpGroup Parent and Itaú Unibanco, and are intended to be transferred to minority shareholders of CorpGroup Parent. During 2014, Corp Group Banking S.A. disposed of 5,208,000.000 of its shares of CorpBanca, as a result, it is still required to dispose of 344,218 CorpBanca shares prior to the closing of the Itaú-CorpBanca Merger in order to meet the divestiture commitment.

The capital increase in Itaú Chile for US$652 million through the issuance of shares to be fully subscribed and paid for by Itaú Unibanco and/or a company owned, directly or indirectly, by Itaú Unibanco. During the year ended December 31, 2014, Itaú Unibanco completed a capital increase of Itaú Chile in the aggregate amount of Ch$58,873 million (approximately US$~~100~~82.88 million as of December 31, ~~2014)~~2015) by purchasing fully subscribed and paid shares of Itaú Chile. As a result of the capital increase effected in the year ended December 31, 2014, Itaú Unibanco is still required to effect a US$552 million capital increase at Itaú Chile prior to the closing of the Itaú-CorpBanca Merger, to meet this commitment.

Thereafter, Itaú Chile will merge with and into CorpBanca, with CorpBanca as surviving entity under the name of “Itaú-CorpBanca”. The Itaú-CorpBanca Merger is expected to result in the issuance of 172,048,565,857 shares of CorpBanca (representing 33.58% of the shares of Itaú-CorpBanca) to Itaú Unibanco. CorpGroup Parent shall retain 33.13% of the capital stock of Itaú-CorpBanca and the remaining 33.29% of the capital stock will be held by public shareholders.

After the Itaú-CorpBanca Merger, the following transactions will be implemented:

CorpBanca and four wholly-owned ~~Subsidiaries~~subsidiaries of CorpBanca shall purchase all of the shares of Itaú Colombia capital stock from affiliates of Itaú Parent, hereinafter referred to as the Colombian Acquisition or, alternatively, if the minority shareholders of CorpBanca Colombia accept the offer to sell their shares in CorpBanca Colombia to Itaú~~-CorpBanca.~~-CorpBanca; Itaú Colombia shall merge with and into CorpBanca Colombia, hereinafter referred to as the Colombian Merger. In the case of the Colombian Merger, CorpBanca Colombia shall be the surviving corporation and shall be governed by the laws of Colombia.

Itaú-CorpBanca, as the holder of 66.28% of the shares of CorpBanca Colombia, shall offer to acquire from certain minority shareholders holding 33.72% of the capital stock of CorpBanca Colombia for an aggregate purchase price of US$894,000,000. CorpGroup Parent, who is among such group of minority shareholders, has committed to sell the 12.38% stake of capital stock it indirectly holds in CorpBanca Colombia.

Prior to the completion of these transactions but after the Colombian Acquisition or the Colombian Merger, the contemplated structure in Colombia will be as follows:

CorpBanca and Itaú Chile made reciprocal customary representations and warranties regarding their businesses and subsidiaries that are subject, in some cases, to specified exceptions and qualifications and the matters contained in the disclosure schedules delivered by CorpBanca and Itaú Chile pursuant to the Transaction Agreement. The representations and warranties do not survive the closing of the Itaú-CorpBanca Merger. These representations and warranties relate to among other things:

due organization, existence, good standing and authority to carry on its respective business and such of its respective subsidiaries;

its corporate power and authority to enter into, and complete the ~~transactions~~Transactions under, the Transaction Agreement and the Shareholders Agreement; provided that certain shareholder approvals are obtained, and the enforceability of such agreements against it;

the absence of violations of, or conflicts with, its governing documents, applicable law and certain agreements as a result of entering into and performing under the Transaction Agreement and the Shareholders Agreement;

ownership and the absence of encumbrances on ownership of the equity interests of its subsidiaries;

its audited consolidated financial statements as of, and for the years ending on, December 31, 2011 and 2012 and its unaudited consolidated financial statements as of, and for the nine-month period ending on September 30, 2013;

the absence of certain undisclosed liabilities;

the absence of certain changes or events since September 30, 2013;

the conduct of business in accordance with the ordinary course since September 30, 2013;

the absence of facts or circumstances reasonably likely to materially impede or delay receipt of any regulatory consents required pursuant to the Transaction Agreement;

compliance with permits, applicable laws and regulations and governmental orders;

certain employment and labor matters;

compensation and benefit plans;

certain material contracts and the absence of any default under any of such material contracts;

the absence of legal proceedings, investigations and governmental orders against it or its subsidiaries;

timely filing of all reports required to be filed with any governmental authority since January 1, 2011 through the signing date;

investment securities and commodities;

intellectual property;

extensions of credit;

certain loan matters;

the absence of any undisclosed broker’s or finder’s fees;

in the case of CorpBanca, the receipt of opinions as to the fairness, from a financial point of view, of the Chilean Exchange Ratio (as defined in the Transaction Agreement);

related party transactions.

Many of CorpBanca’s and Itaú Chile’s representations and warranties are qualified by, among other things, exceptions relating to the absence of a Material Adverse Effect which for purposes of the Transaction Agreement shall mean any effect, circumstance, occurrence or change which (i) is materially adverse to the business, financial condition, operations or results of operations of (x) CorpBanca, CorpBanca Colombia and their respective subsidiaries, taken as a whole, in the case of each of the Corp Group Parties or (y) Itaú Chile, Itaú Colombia and their respective subsidiaries, taken as a whole, in the case of each of the Itaú Parties; or (ii) materially impairs the ability of such Party to consummate the Transactions on a timely basis; provided that in determining whether a Material Adverse Effect has occurred with respect to such Party under clause (i), there shall be excluded (with respect to each of clause (A), (B), (C) and (D) below, only to the extent that the adverse effect of a change on it is not materially disproportionate compared to the effect on other companies of a similar size operating in the banking industry in the jurisdictions in which the Party operates) any effect, circumstance, occurrence or change to the extent attributable to or resulting from (A) any changes in laws, regulations or interpretations of laws or regulations generally affecting the financial services industries in which the Parties operate, (B) any change in IFRS or regulatory accounting requirements generally affecting the financial services industries in which the Parties operate, (C) events, conditions or trends in economic, business or financial conditions generally affecting the financial services industries in which the Parties operate, including changes in prevailing interest rates, currency exchange rates and trading volumes in Chile, Colombia or foreign securities markets, (D) changes in national or international political or social conditions including the engagement by Chile, Brazil, Colombia or Panama in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon or within Chile, Brazil, Colombia or Panama, or any of their respective territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of

Chile, Brazil, Colombia or Panama, (E) the effects of the actions expressly required by the Transaction Agreement and (F) the announcement of the Transaction Agreement and the Transactions; and provided further that in no event shall a change in the trading prices of a Party’s common stock by itself (but for the avoidance of doubt not the underlying causes thereof to the extent such causes are not otherwise excluded pursuant to (A) – (E) above) constitute a Material Adverse Effect.

CorpGroup Parent and Itaú Unibanco have also made certain customary representations and warranties pursuant to the Transaction Agreement regarding:

its corporate power and authority to enter into, and complete the Transactions under the Transaction Agreement, and the enforceability of such agreement against them;

required consents, declarations or filings with governmental authorities;

the absence of violations of, or conflicts with, its organizational documents, any applicable law and certain agreements as a result of their entering into the Transaction Agreement; and

ownership and absence of encumbrances on their direct or indirect ownership of equity interests of CorpBanca and CorpBanca Colombia or Itaú Chile and Itaú Colombia, as applicable.

Under the Transaction Agreement, ~~both~~ CorpBanca and Itaú Chile have agreed that, except as expressly contemplated under the Transaction Agreement or consented to in writing by the other party, both of them shall, and shall cause their respective subsidiaries to, (a) conduct its business in the ordinary course consistent with past practice, (b) use reasonable best efforts to maintain and preserve intact its business organization, assets, employees and relationships with customers, suppliers, employees and business associates and (c) take no action that would reasonably be expected to adversely affect or delay the ability of any party to obtain any regulatory consents required for consummation of the Transactions, to perform their covenants and agreements under the Transaction Agreement or to consummate the ~~transactions described therein~~Transactions on a timely basis.

Subject to certain exceptions set forth in the Transaction Agreement and pending completion of the Itaú-CorpBanca Merger, neither CorpBanca, CorpBanca Colombia nor Itaú Chile and Itaú Colombia shall, or shall permit its subsidiaries to, take any of the following actions without the other parties written consent:

amend its organizational documents or enter into a plan of consolidation, merger, share exchange, reorganization or similar business combination;

(i) adjust, split, combine or reclassify any capital stock or authorize the issuance of any securities in respect of, in lieu of or in substitution for, shares of its capital stock, (ii) set a record date or payment date for, make, declare or pay any dividend or make any other distribution on, or directly or indirectly redeem, purchase or otherwise acquire, any shares of its capital stock or any securities or obligations convertible into or exercisable or exchangeable for any shares of its capital stock, (iii) grant or issue any equity, (iv) issue, sell or otherwise permit to become outstanding any additional shares of capital stock, (v) make any change in any instrument or contract governing the terms of any of its securities (other than for the purposes of effecting the Transactions) or (v) enter into any contract with respect to the sale or voting of its capital stock;

make any material investment in or acquisition of any other entity;

(i) enter into any new line of business which is not within the banking business, (ii) change its lending, investment, underwriting, securitization, servicing, risk and asset liability management and other banking and operating or (iii) make application for the opening, relocation or closing of any, or open, relocate or close any, branch office, loan production office or other significant office or operations facility;

sell, transfer, mortgage, encumber or otherwise dispose of any part of its business or any of its properties or assets;

incur any indebtedness for borrowed money other than indebtedness of it or any of its wholly-owned subsidiaries to it or any of its wholly-owned subsidiaries; assume, guarantee, endorse or otherwise as an accommodation become responsible for third parties obligations; or make any loan or advance to any third party;

restructure or make any material change to its investment securities portfolio, its derivatives portfolio or its interest rate exposure;

terminate, amend, waive or knowingly fail to use reasonable best efforts to enforce, any material provision of any material contract;

(i) increase by more than 20% the aggregate compensation or benefits of any of its current or former officers, directors, employees with annual base compensation in excess of US$350,000 or consultants, (ii) become a party to, adopt, terminate, materially amend or commit itself to any compensation and benefit plan or contract with annual base compensation in excess of US$350,000, (iii) pay or award, or commit to pay or award, any bonuses or incentive compensation or (iv) grant or accelerate the vesting of any equity-based awards;

settle any litigation, except for certain litigation involving solely money damages in an amount not greater than US$1,000,000 individually;

implement or adopt any change in its financial accounting principles, practices or methods;

file or amend any material tax return; settle or compromise any material tax liability in an amount greater than US$2,000,000; make, change or revoke any material tax election; agree to any extension or waiver of the statute of limitations with respect to assessment or determination of material taxes, surrender any right to claim a material tax refund; or change any material method of tax accounting;

knowingly take, or knowingly omit to take, any action that is reasonably likely to result in any of the conditions to the Transactions not being satisfied on a timely basis;

adopt a plan of complete or partial liquidation or resolutions providing for or authorizing such a liquidation or dissolution, restructuring, recapitalization or reorganization; or

agree to take, or adopt any resolutions of its board of directors or similar governing body in support of, any of the actions described above.

~~From and after~~Pursuant to the ~~date~~terms of the Transaction Agreement, ~~until completion~~in an extraordinary shareholders meeting held on June 26, 2015, our shareholders agreed to distribute a special dividend for an aggregate amount of ~~the Itaú-CorpBanca Merger: (i) CorpBanca may declare and pay annual dividends at a rate not to exceed 57%~~Ch$239,860,000,000 (US$337,678,792.66 as of December 31, 2015), from the distributable earnings for the year ended December 31, ~~2013 and 50%~~2014. This dividend, of the distributable earnings for the year ended December 31, 2014; (ii) Helm Bank (prior to the CorpBanca Colombia-Helm Merger) and CorpBanca Colombia (post-completion of the CorpBanca Colombia-Helm merger) may declare and pay annual dividends on the relevant outstanding shares, as applicable, at a rate not to exceed COP$9.40Ch$0.704728148 per share, per annum; and (iii) Itaú Chile shall not declare any dividends for the year ended December 31, 2013, but may declare and pay an annual dividend, at a rate not to exceed 50% of the distributable earnings, for the year ended December 31, 2014.was paid on July 1, 2015.

~~As soon as reasonably practicable after receipt~~In an extraordinary shareholders’ meeting held on June 26, 2015, our shareholders approved the Itaú-CorpBanca Merger and the other Transactions contemplated in the Transaction Agreement. Pursuant to the agreements adopted, the Itaú-CorpBanca Merger shall take place not later than May 2, 2016. The shareholders of ~~all required regulatory consents, CorpBanca and~~ Itaú Chile ~~shall each (i) duly call a meeting of its shareholders for the purpose of obtaining approval~~gave their consent to the ~~Transactions~~Itaú-CorpBanca Merger and ~~(ii) use its reasonable best efforts~~ to ~~cause such meeting to occur as soon as reasonably practicable. Except with the prior approval of~~ the other party, no other matters shall be submitted for approval at such shareholders’ meeting. The boards of directors of CorpBanca and Itaú Chile shall each use its reasonable best efforts to obtain the respective shareholder approval.

CorpBanca may adjourn or postpone the abovementioned shareholders’ meetings if, as of the time for which such meeting is originally scheduled, the quorum necessary to conduct the business of such meeting is insufficient. If approval by the shareholders of CorpBanca, is not obtained, the parties shallTransactions contemplated in good faith use its reasonable best efforts to (i) negotiate a restructuring of the Transactions and/or (ii) resubmit it to the CorpBanca shareholders for approval. CorpBanca shall not be required to call a meeting of its shareholders if an Itaú party is in breach of the Transaction Agreement ~~or if there are other circumstances (not caused by CorpBanca or CorpGroup Parent) that prevent satisfaction of closing conditions of the Transactions for CorpBanca or CorpGroup Parent.~~

At such shareholders’ meetings, (a) CorpGroup Parent has agreed to vote its shares of CorpBanca, and to cause CorpBanca to vote its shares of CorpBanca Colombia, and (b) Itaú Unibanco shall cause its applicable affiliates to vote their shares of Itaú Chile and Itaú Colombia, in ~~each case (i) in favor of the Transactions, as applicable, and any proposal to adjourn or postpone the relevant~~an extraordinary shareholders’ meeting to a later date if there are not sufficient votes to obtain the relevant shareholder approval, and (ii) against any contract, transaction or proposal that relates to an alternative transaction. Each of CorpGroup Parent and Itaú Unibanco have agreed not to (A) sell, short sell, transfer, assign, tender or otherwise dispose of any of its shares of CorpBanca or Itaú Chile, as applicable, in a manner that would result in CorpGroup Parent or Itaú Chile and its affiliates, as applicable, not having the full and exclusive ability to vote such shares, (B) take any action that would result in CorpGroup Parent or Itaú Chile and its affiliates, as applicable, not having full and exclusive power to vote such shares or (C) enter into any contract with respect to any such action or transfer.held on June 30, 2015.

~~CorpGroup Parent,~~On September 4, 2015 the SBIF issued Resolution N° 409 approving the Itaú-CorpBanca Merger in the following terms:

1. The Itaú-CorpBanca Merger shall take place by the incorporation of the latter to the former, which, as a consequence of the merger, shall acquire all the assets, rights, authorizations, permits, obligations and liabilities of the absorbed bank, with Corpbanca continuing as the surviving entity.

2. The merger will not be effective before January 1, 2016 or after May 2, 2016, and the exact date shall be determined by the board of directors of both banks.

3. As a consequence of the merger, Itaú Unibanco will become the controller of the merged bank, pursuant to articles 97 and ~~their respective subsidiaries,~~99 of the Chilean Securities Market Act.

4. The amendment to CorpBanca’s by-laws, which will be renamed Itaú Corpbanca, was approved. Such amendment shall ~~cooperate~~be valid as from the date in which the Itaú-CorpBanca Merger is completed.

With the resolution of the SBIF referred above, all the regulatory authorizations required in Chile, Colombia, Panama and use their reasonable best efforts to (i) prepare, as promptly as practicable, all documentation and to effect all filings with respect to, and (ii) to seek, all regulatory consents and other material third-party consents necessaryBrazil have been obtained in order to consummate the ~~Transactions, as promptly as practicable.~~

~~To that end, and subject to~~merger in the terms of the Transaction Agreement, the parties have agreed to use their reasonable best efforts to take, or cause to be taken, in good faith, all actions, and to do, or cause to be done, all things necessary, including using their reasonable best efforts to lift or rescind any order adversely affecting its ability to consummate the Transactions on a timely basis, to cause to be satisfied the conditions to closing, and to permit consummation of the Transactions as promptly as practicable.

Notwithstanding the foregoing, no party shall be required to take any action, or commit to take any action, or agree to any condition or restriction, in connection with obtaining any regulatory consents that would reasonably be expected to have a Material Adverse Effect on either CorpBanca and its subsidiaries, taken as a whole, or Itaú Chile, Itaú Colombia and their subsidiaries, taken as a whole.abovementioned terms.

The parties have agreed that they will not, and will cause their respective subsidiaries and subsidiaries’ officers, directors, representatives and affiliates not to, directly or indirectly, (i) initiate, solicit, encourage or knowingly facilitate inquiries or proposals with respect to, (ii) engage or participate in any negotiations concerning, (iii) provide any nonpublic information or data to, or have or participate in any discussions with, any third party relating to or (iv) approve or recommend, or propose to approve or recommend, or execute or enter into, any letter of intent, agreement in principle, merger agreement, asset purchase or share exchange agreement, option agreement or other similar agreement related to any alternative transaction to the ~~transactions~~Transactions contemplated under the Transaction Agreement.

Following completion of the Itaú-CorpBanca Merger, CorpBanca at its election shall either (i) offer generally to officers and employees of Itaú Chile and its subsidiaries that have or will become employees of CorpBanca or its subsidiaries, or the Itaú Chile Continuing Employees, employee benefits under compensation and benefit plans on terms and conditions similar to those maintained by CorpBanca and its subsidiaries and/or (ii) maintain for the benefit of Itaú Chile

Continuing Employees, the compensation and benefit plans maintained by Itaú Chile immediately before the Itaú-CorpBanca Merger. For purposes of eligibility, participation, vesting and benefit accrual (except not for purposes of benefit accrual to the extent that such credit would result in a duplication of benefits) under CorpBanca’s compensation and benefit plans, service with or credited by Itaú Chile or any of its subsidiaries or any of their predecessors shall be treated as service with CorpBanca.

From and after completion of the Itaú-CorpBanca Merger, in the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been, or who becomes prior to completion of the Itaú-CorpBanca Merger, a director or officer of CorpBanca or Itaú Chile or any of their subsidiaries, or the Indemnified Parties, is, or is threatened to be, made a party on the basis of the Transaction Agreement or the Transactions, CorpBanca has agreed to indemnify, defend and hold harmless, to the fullest extent permitted by applicable law, each such Indemnified Party against any liability, judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation.

Immediately prior to the completion of the Itaú-CorpBanca Merger, CorpBanca will cause the directors or officers of CorpBanca or Itaú Chile, to be covered by CorpBanca’s or Itaú Chile’s existing directors’ and officers’ liability insurance policy with respect to acts or omissions occurring prior to the Itaú-CorpBanca Merger which were committed by such officers and directors in their capacity as such. To this end, CorpBanca may substitute policies of at least the same coverage and amounts containing terms and conditions which are not less advantageous than such policy but in no event shall CorpBanca be required to expend more than 250% per year of coverage of the amount expended by CorpBanca or Itaú Chile per year of coverage as of the date of the Transaction Agreement.

CorpGroup Parent and Itaú Unibanco ~~have~~ agreed to engage an internationally recognized management firm to evaluate their respective existing management and recommend, on the basis of international, merit-based standards, professional track record and relevant industry and jurisdiction-specific experience, a list of the most qualified candidates to serve as the initial senior management (including country heads) of Itaú-CorpBanca and its subsidiaries. After receipt of such non-binding recommendation Itaú Unibanco and CorpGroup Parent ~~will~~had to jointly ~~(but, in the event that Itaú Unibanco and CorpGroup Parent fails to agree, Itaú Unibanco will)~~ determine in good faith the individuals who are most qualified to serve as senior management. On November 23, 2015, and as agreed in the Transaction Agreement, Itaú Unibanco and CorpGroup Parent announced the senior management team for the bank upon the consummation of the Itaú-CorpBanca Merger, which will be led by Milton Maluhy Filho as Chief Executive Officer.

Itaú Unibanco and CorpGroup Parent have agreed to cause CorpBanca to cause CorpBanca Colombia to consummate a primary offering of shares as promptly as practicable on or after the consummation of the Itaú-CorpBanca Merger.

Itaú Unibanco and CorpGroup Parent shall cause Itaú-CorpBanca and its subsidiaries to make, and Itaú-CorpBanca shall make, certain charitable donations.

Following completion of the Itaú-CorpBanca Merger, Itaú Unibanco shall cause Itaú Chile Compañía de Seguros de Vida S.A. to provide life insurance-related products to all the clients of Itaú-CorpBanca that are permitted to obtain an offer from an insurance broker to acquire life insurance and to pay CorpBanca Corredores de Seguros, S.A. and Itaú Chile Corredora de Seguros Limitada brokerage and/or services fees in an aggregate annual amount equal to 47.7%, or the Applicable Premium Percentage of the aggregate revenues generated by them from the sales of such life-insurance related products for the relevant year, in consideration and exchange for the offer of such products to the clients of Itaú-CorpBanca.

The Applicable Premium Percentage will be revised on a yearly basis as provided by the Transaction Agreement.

If Itaú Unibanco desires not to continue to cause Itaú Chile Compañía de Seguros de Vida S.A. to offer the life-insurance related products to the insurance clients of Itaú-CorpBanca, Itaú Unibanco shall use its reasonable best efforts to, enter into an agreement with a third party and one or more CorpBanca Corredores de Seguros, S.A. and/or Itaú Chile Corredora de Seguros Limitada, whereby such third party will provide life-insurance related products to the insurance clients of Itaú-CorpBanca and pay to CorpBanca Corredores de Seguros, S.A. and/or Itaú Chile Corredora de Seguros Limitada, as applicable, the related insurance brokerage fees on substantially the same terms described above. Until an agreement with

such third party has been executed, Itaú Unibanco will continue to pay Itaú-CorpBanca or CorpBanca Corredores de Seguros, S.A. and/or Itaú Chile Corredora de Seguros Limitada an amount equal to the average of the Insurance Brokerage Fees paid by Itaú Chile Compañía de Seguros de Vida S.A. in the 12-month period prior to the date on which Itaú Chile Compañía de Seguros de Vida S.A. ceases to provide life-insurance related products to Itaú-CorpBanca or CorpBanca Corredores de Seguros, S.A. and/or Itaú Chile Corredora de Seguros Limitada.

~~For a period of six months after the date of the Transaction Agreement,~~ CorpGroup Parent and Itaú Unibanco ~~will~~agreed to discuss whether CorpBanca will continue to hold its ownership interest in SMU Corp. If after such period of time, CorpGroup Parent and Itaú Unibanco have not reached an agreement, Itaú Unibanco will decide in its sole discretion.

Pursuant to such determination, and if necessary, CorpGroup Parent will, and will cause CorpBanca to use reasonable best efforts to divest, transfer, liquidate or otherwise dispose all of CorpBanca’s and its subsidiaries’ investment in SMU Corp. as promptly as reasonably practicable and on commercially reasonable terms.

Pursuant to the Transaction Agreement, Itaú Unibanco decided that CorpBanca shall divest all of its investment in SMU Corp. For these purposes, on February 23, 2016, CorpBanca’s board of directors agreed to sell the bank’s 51% stake in SMU Corp, in the following terms and conditions: (a)Purchaser: SMU S.A. and/or any other company appointed by the latter; (b)Sale price: Ch$454.4 million; (c)Term: Any time after the SBIF’s authorization and once Itaú Unibanco has consented to the terms and conditions of the transaction. As of the date of this report, Itaú Unibanco’s consent has already been requested.

Itaú Unibanco has agreed to cause its applicable ~~Subsidiary~~subsidiary to enforce its rights under the Stock Purchase Agreement by and among MCC Inversiones Globales Ltda, Unibol S.A., Inversiones Río Bamba Ltda., Sociedad Promotora de Inversiones y Rentas Balaguer LTDA., BICSA Holdings Ltd., Itaú Unibanco Holding S.A., and certain beneficial owners set forth therein, dated as of August 1, 2011, to purchase the remaining outstanding capital stock of Munita, Cruzat y Claro S.A. Corredores de Bolsa, or the MCC, by August 31, 2016 to the extent it has not otherwise acquired such capital stock by that date. Promptly following the later of (i) the completion of the Itaú-CorpBanca Merger and (ii) the acquisition of 100% of the outstanding capital stock of MCC, Itaú Unibanco shall cause its applicable ~~Subsidiary~~subsidiary to transfer 100% of the outstanding capital stock of MCC to Itaú-CorpBanca for fair value and other customary terms and conditions.

Each party’s respective obligations to consummate theItaú-CorpBanca Merger are subject to the following conditions:

approval of the ~~Transactions~~Itaú-CorpBanca Merger by two-thirds of the CorpBanca shareholders;

receipt of specified regulatory and third-party consents; and

the absence of any governmental order preventing or suspending the consummation of the Itaú-CorpBanca Merger or requiring any change to the terms or structure of the Transactions set forth in the Transaction Agreement.

The obligations of CorpGroup Parent and CorpBanca to consummate the Itaú-CorpBanca Merger are subject to the following conditions:

the representations and warranties of Itaú Unibanco and Itaú Chile set forth in the Transaction Agreement shall be true and correct, subject to the materiality standards set forth in the Transaction Agreement, as of the date of the ~~Transactions~~Transaction Agreement and as of the date of consummation of the Itaú-CorpBanca Merger;

each of Itaú Unibanco and Itaú Chile shall have duly performed and complied with the agreements and covenants required to be performed and complied with by it pursuant to the Transaction Agreement;

Itaú Unibanco shall have duly executed the Shareholders Agreement and certain pledge agreements; and

no circumstance, occurrence or change that has had a Material Adverse Effect on Itaú Unibanco and Itaú Chile shall have occurred.

The obligations of Itaú Unibanco and Itaú Chile to consummate the Itaú-CorpBanca Merger are subject to the following conditions:

the representations and warranties of CorpGroup Parent and CorpBanca set forth in the Transaction Agreement shall be true and, subject to the materiality standards set forth in the Transaction Agreement, correct as of the date of the Transaction Agreement and as of the date of consummation of the Itaú-CorpBanca Merger;

each of CorpGroup Parent and CorpBanca shall have duly performed and complied with the agreements and covenants required to be performed and complied with by it pursuant to the Transaction Agreement;

CorpGroup Parent shall have duly executed the Shareholders Agreement, caused to be executed certain pledge agreements, and, directly or indirectly, own at least 84,154,814,190 of the outstanding shares of CorpBanca; and

no circumstance, occurrence or change that has had a Material Adverse Effect on CorpGroup Parent and CorpBanca shall have occurred.

The Transaction Agreement may be terminated and the Transactions abandoned at any time prior to the completion of the Itaú-CorpBanca Merger, by any of the causes set forth below:

Mutual consent of both parties;

By either party, upon written notice to the other party:

in case of breach of any representation, warranty, covenant or agreement contained in the Transaction Agreement, if such breach, individually or in the aggregate, would result in the failure to comply with any of the conditions that are necessary for closing the Transactions and only if such breach has not or cannot be cured within 45 days from its notification to the breaching party;

in case any regulatory consents that are necessary for the closing of the Transactions is denied by final non-appealable action by the corresponding governmental authority or in case any governmental authority of competent jurisdiction issues an order or takes any other action permanently restraining, enjoining or otherwise prohibiting the Transactions, and such order or other action has become final and non-appealable; or

in case the Itaú-CorpBanca Merger is not consummated ~~within two years from the date of the Transaction Agreement.~~

By Itaú Unibanco, upon written notice to CorpGroup Parent, in case CorpGroup Parent does not timely call the shareholders’ meeting of CorpBanca in which the Transactions will be presented for approvalon or fails to attend or vote at the relevant shareholders’ meeting that has been duly called, or votes in favor of an alternative transaction, or tenders shares into an alternative transaction, in which case CorpGroup Parent shall pay a termination fee of US$400 million; or

By CorpGroup Parent, upon written notice to Itaú Unibanco, in case Itaú Unibanco does not timely call the shareholders’ meeting of Itaú Chile in which the Transactions will be presented for approval or fails to attend or vote at the relevant shareholders’ meeting that has been duly called, or votes in favor of an alternative transaction, or tenders shares into an alternative transaction, in which case Itaú Unibanco shall pay a termination fee of US$400 million.before May 2, 2016.

Except as described above and subject to certain other exceptions, if the Transaction Agreement is terminated pursuant to any of the circumstances described above it will be considered without any effect and neither the parties, nor their affiliates, directors,

or employees will have any obligation or liability with regard to the Transactions; provided that such termination shall not relieve any party from any liability for any willful and material breach of the Transaction Agreement.

The following summary is included to provide you with information regarding the terms of the form of Shareholders’ Agreement. This section is not intended to provide you with any factual information about CorpBanca. Such information can be found elsewhere in the public filings that CorpBanca makes with the SEC. The Shareholders’ Agreement remains subject to change to reflect any modifications mutually agreed by the parties thereto prior to its execution. As noted, the Shareholders’ Agreement will be executed concurrently with the closing of the Itaú-CorpBanca ~~merger.~~Merger.

Composition and size of the Board of Directors of Itaú-CorpBanca and its subsidiaries.

Itaú Unibanco and CorpGroup Parent have agreed that of the number of directors of each of the board of (i) Itaú-CorpBanca and CorpBanca Colombia that they are entitled or able to appoint (including by causing Itaú-CorpBanca to appoint) at any time (in addition to any independent directors required by applicable law) and (ii) the respective subsidiaries of Itaú-CorpBanca and CorpBanca Colombia that they are entitled or able to appoint at any time (in addition to any independent directors required by applicable law), each of Itaú Unibanco and CorpGroup Parent shall be entitled to designate a number in proportion to its respective direct and indirect percentage ownership in Itaú-CorpBanca, rounded to the nearest whole number; provided that Itaú Unibanco shall designate at least a majority of such directors of each board appointed by them and that at least one of such directors of each board is appointed by CorpGroup Parent.

The board of Itaú-CorpBanca shall be comprised of eleven directors and two alternate directors (one selected by Itaú Unibanco and one selected by CorpGroup Parent). The board of CorpBanca Colombia shall be comprised of nine directors and the number of directors of the board of all other subsidiaries shall be specified by the board of Itaú-CorpBanca.

Itaú Unibanco and CorpGroup Parent have agreed to cause, (i) a designee of CorpGroup Parent to be the chairman of the board of Itaú-CorpBanca as long as CorpGroup Parent holds at least 13% of the capital stock of Itaú-CorpBanca, (ii) a designee of CorpGroup Parent to be the chairman of the board of CorpBanca Colombia as long as CorpGroup Parent holds at least 13% of the capital stock of Itaú-CorpBanca and (iii) a designee of Itaú Unibanco to be the vice-chairman of Itaú-CorpBanca and CorpBanca Colombia. The chairman of the board of Itaú-CorpBanca shall not have a casting vote.

Itaú Unibanco and CorpGroup Parent shall cause the directors of the relevant board appointed by them to vote, to the extent permitted by applicable law, together as a single block on all matters in accordance with the recommendation of Itaú Unibanco (except in the cases subject to shareholder consent rights). To this end, in the event that (i) a director of Itaú-CorpBanca, CorpBanca Colombia or any other ~~Subsidiary~~subsidiary of Itaú-CorpBanca designated by CorpGroup Parent or Itaú Unibanco does not vote with the other directors as a single block and (ii) as a consequence, the relevant board is unable to adopt a decision on such matter in accordance with the recommendation of Itaú Unibanco (except that (ii) will not be required if such director is a member of the Saieh Group, or fails to comply on more than two occasions and more than two matters in any calendar year), Itaú Unibanco or CorpGroup Parent (whomever designated such director), shall take all required action to have such director removed from the relevant board within 60 calendar days. Failure to take such action shall be considered to constitute a Material Breach by the shareholder who designated such director.

A majority of the directors will constitute quorum for all meetings of the relevant boards. However, if less than all of the directors appointed by Itaú Unibanco to such board are not present, a quorum will not exist without the consent of the majority of the directors appointed by Itaú Unibanco to such board. The vote of the majority of the directors attending a meeting will be required to pass a resolution of the relevant boards (except in the cases subject to shareholder consent rights).

Itaú Unibanco and CorpGroup Parent have agreed to cause Itaú-CorpBanca and CorpBanca Colombia to each create the following committees of the board of directors: Directors Committee, Audit Committee, Management and Talent Committee, Asset and Liability Management Committee and Credit Committee.

The Credit Committee shall (i) have binding power to establish the limits and procedures of the credit policy of Itaú-CorpBanca and its subsidiaries and the power to establish approval exceptions for financial decisions exceeding certain thresholds (to be defined by the Credit Committee) and (ii) shall impose a binding framework with upper limits on credit exposures for which

approval of Itaú Unibanco will be required. In connection with the latter, Itaú Unibanco shall respond to any such requests for approval within seven business days (the absence of explicit denial being considered as an approval).

The Credit Committee shall be comprised of five members (of which three shall be appointed by Itaú Unibanco and two by CorpGroup Parent), all of whom shall be local executives or directors of the relevant board, and be headed by a local executive officer or director recommended by the chief executive officer of Itaú-CorpBanca or its relevant ~~Subsidiary,~~subsidiary, as applicable.

The original form of Shareholders’ Agreement set forth that Itaú Unibanco and CorpGroup Parent ~~have agreed to~~shall cause Itaú-CorpBanca to make certain political donations consistent with past practice. This provision has been deleted in its entirety in the amendment of the Transaction Agreement, dated June 2, 2015.

The Board of Itaú-CorpBanca shall appoint from time to time the CEO, the country heads and other senior management of Itaú-CorpBanca and CorpBanca Colombia. Mr. ~~Boris Buvinic~~Milton Maluhy Filho will be the initial CEO of Itaú-CorpBanca following completion of the Itaú-CorpBanca Merger. Itaú Unibanco and CorpGroup Parent shall cause Itaú-CorpBanca to cause its subsidiaries to appoint designees of the board of Itaú-CorpBanca from time to time to the designated positions at such ~~Subsidiary.~~subsidiary. A Management and Talent Committee will determine an objective process to recommend designees to these positions based on internal promotion, international, merit-based standards and professional track record, and relevant industry and jurisdiction-specific experience, and will provide a list of selected candidates to the board of Itaú-CorpBanca who will be ultimately responsible for their final appointment.

CorpGroup Parent may request the removal of the CEO of Itaú-CorpBanca and of CorpBanca Colombia if during three consecutive years (excluding the year of the closing of the ~~Transactions)~~Itaú-CorpBanca Merger) the ROE (return on equity) of the respective bank is at least 1% lower than the average ROE of the three largest privately-owned banks (measured by assets, and excluding Itaú-CorpBanca and CorpBanca Colombia) of Chile or Colombia, as the case may be, during such three-year period.

Subject to certain exceptions set forth in the Shareholders’ Agreement, Itaú Unibanco and CorpGroup Parent have agreed that Itaú-CorpBanca shall not take, and shall not permit any ~~Subsidiary~~subsidiary to take, any of the following ~~transactions~~Transactions without the consent of (i) CorpGroup Parent, so long as CorpGroup Parent owns at least 13% of the capital stock of Itaú-CorpBanca, and (ii) Itaú Unibanco:

merge, reorganize or consolidate Itaú-CorpBanca or any of its subsidiaries or enter into a joint venture or similar transaction in excess of materiality thresholds;

issue or sell any equity securities of Itaú-CorpBanca or any of its subsidiaries, other than solely to the extent required to comply with immediate legal and regulatory requirements or to meet the Optimal Regulatory Capital;

repurchase or otherwise retire or acquire any shares or other equity securities of Itaú-CorpBanca or any of its subsidiaries;

list or delist any shares or other equity securities of Itaú-CorpBanca or any of its subsidiaries;

enter into, modify or terminate a contract or transaction with a related party;

any acquisition of the stock, equity interests, assets or business of any third-party or any disposition of assets of Itaú-CorpBanca or any ~~Subsidiary~~subsidiary or the capital stock or other equity interests of any ~~Subsidiary,~~subsidiary, in each case in excess of materiality thresholds;

effect any ~~liquidations,~~liquidation, dissolutions, reorganizations through a voluntary bankruptcy or similar transactions;

amend or repeal any provision of the organizational documents of Itaú-CorpBanca or any of its subsidiaries;

change the size or powers of the board of directors or any committee thereof;

enter into any new line of business, that is not a Banking Business;

create or dissolve one or more subsidiaries in excess of materiality thresholds;

enter into agreements between Itaú-CorpBanca or any of its subsidiaries, on the one hand, and any Governmental Authority, on the other hand;

make any change in the external auditors of Itaú-CorpBanca or any of its subsidiaries;

make any change to the dividend policy;

enter into any agreement that limits or restricts the ability of Itaú-CorpBanca or any of its subsidiaries to own, manage, operate, control, participate in, perform services for, or otherwise carry on or engage in any business or in any geographic area;

enter into any contract to do any of the foregoing actions; and

any other matter not set forth above that requires the approval of a supermajority of the shareholders of Itaú-CorpBanca under Article 67 of the Chilean Corporations Act.

Itaú Unibanco and CorpGroup Parent shall each maintain a direct or indirect wholly-owned ~~Subsidiary,~~subsidiary, or Company One and Company Two, respectively, and, collectively, the Companies which shall hold their respective shares of Itaú-CorpBanca. Itaú Unibanco will form Company One prior to the Itaú-CorpBanca Merger. For CorpGroup Parent, Company Two is Corp Group Banking S.A. and Inversiones Saga Limitada.

Itaú Unibanco and CorpGroup Parent have agreed not to directly or indirectly purchase or otherwise acquire shares of Itaú-CorpBanca or any beneficial interest therein to the extent such acquisition would require Itaú Unibanco or CorpGroup Parent to launch a tender offer to acquire all shares of Itaú-CorpBanca. Any transfer of shares of Itaú-CorpBanca made by Itaú Unibanco and CorpGroup Parent shall be implemented through the Santiago Stock Exchange with a five-day prior notice to the other party.

So long as CorpGroup Parent and Itaú Unibanco collectively hold an aggregate direct or indirect participation in the voting shares of Itaú-CorpBanca of at least 50% plus one share, CorpGroup Parent shall keep (and may not transfer) the direct or indirect ownership of a number of shares of Itaú-CorpBanca representing the lesser of: (i) 16.42% of the shares of Itaú-CorpBanca at the time of execution of the Shareholders’ Agreement (i.e. at the closing of the Transactions) or (ii) the minimum percentage of such shares that allows Itaú Unibanco and CorpGroup Parent to hold such aggregate direct or indirect participation in the voting shares of Itaú-CorpBanca. Such number of shares will be pledged by CorpGroup Parent in favor of Itaú Unibanco.

Subject to the terms set forth on the Shareholders’ Agreement, Itaú Unibanco and CorpGroup Parent shall have a right of first offer with regard to potential transfers of shares of the Companies. If either Itaú Unibanco or CorpGroup Parent intend to transfer shares of the Companies, such party shall notify in writing to the other party of such intention, stating the number of shares, the price and other terms and conditions of the proposed transfer. The recipient party shall have the right to purchase all such shares for a price and under terms and conditions equal to those notified by the selling shareholder. If the recipient party elects not to purchase all the shares intended to be transferred, the selling shareholder shall be permitted for a period of six (6) months from the date the notice to purchase the shares was due to be received by the selling party, to transfer to a third party not less than the number of shares, at a price not less than and on terms and conditions not materially less favorable to the selling shareholder than those stated in the notice of such proposed transfer.

CorpGroup Parent will have the right to tag-along on the sale of shares of Company One or of shares of Itaú-CorpBanca owned by Company One by Itaú Unibanco and jointly sell to a third party with Itaú Unibanco in such sale. Pursuant to such right, in the event of a proposed transfer of shares of Company One or shares of Itaú-CorpBanca by Itaú Unibanco, Itaú Unibanco shall deliver to CorpGroup Parent prompt written notice stating, to the extent applicable, (i) the name of the proposed transferee, (ii) the number of shares proposed to be transferred, (iii) the proposed purchase price and (iv) any other material terms and conditions of the proposed transfer.

The proposed transferee will not be obligated to purchase a number of shares exceeding that set forth in the notification of the proposed transfer. In the event such transferee elects to purchase less than all of the total shares sought to be transferred by CorpGroup Parent and Itaú Unibanco, CorpGroup Parent shall be entitled to transfer to the proposed transferee a number of shares

equal to (i) the total number of shares originally proposed to be transferred by Company One and Itaú Unibanco multiplied by (ii) a fraction, (A) the numerator of which is the total number of shares of Itaú-CorpBanca held by Company Two, and (B) the denominator of which is the total number of shares of Itaú-CorpBanca held by the Companies.

In the event of a proposed sale of all of the issued and outstanding shares of Company One or shares of Itaú-CorpBanca held by Itaú Unibanco to a third party and if at such time CorpGroup Parent owns less than 10% of the capital stock of Itaú-CorpBanca, Itaú Unibanco may notify CorpGroup Parent in writing of such proposed sale stating (i) the name of the proposed transferee, (ii) the proposed purchase price (which shall be equal to at least the higher of fair value and market price), (iii) the obligation of the transferee to purchase all of CorpGroup Parent shares of Itaú-CorpBanca, and (iv) any other material terms and conditions of the transfer.

Under these circumstances, CorpGroup Parent shall be obligated to sell all of its shares of Itaú-CorpBanca, free and clear of liens at the same price and on other terms no less favorable than Itaú Unibanco.

If and to the extent that CorpGroup Parent is prohibited from selling its shares of Itaú-CorpBanca, CorpGroup Parent shall have the unconditional right, from time to time on one or more occasions, to sell to Itaú Unibanco, and Itaú Unibanco shall have the unconditional obligation to acquire from CorpGroup Parent, any number of shares of Company Two at a price per share equal to the market price as of the date on which CorpGroup Parent notifies Itaú Unibanco of CorpGroup Parent’s exercise of its unconditional right to sell if immediately following such sale CorpGroup Parent and Itaú Unibanco would continue to collectively hold an aggregate direct or indirect participation in the voting shares of Itaú-CorpBanca of at least 50% plus one share.

At the time of payment of the purchase price of the shares of Company Two, Itaú Unibanco shall pay CorpGroup Parent, as an indemnity for not being able to benefit from the exemption on capital gains set forth in Article 107 of the Chilean Income Tax Law to which it would otherwise have been entitled to if it would have sold the underlying shares of Itaú-CorpBanca in the Santiago Stock Exchange, a cash amount equal to (i) 50% of any taxes of CorpGroup Parent or its affiliates arising out of or in connection with such transfer that would not have arisen if it had sold the underlying shares of Itaú-CorpBanca in the Santiago Stock Exchange and benefit from the abovementioned exemption on capital gains, and (ii) any taxes of CorpGroup Parent or its affiliates arising out of the application of such indemnity payment.

Under the Shareholders’ Agreement, CorpGroup Parent shall notify Itaú Unibanco prior to consummating a Change of Control of CorpGroup Parent and provide Itaú Unibanco a right of first offer to purchase a number shares of Company Two equal to the number required by Itaú Unibanco to hold an aggregate direct or indirect participation in the voting shares of Itaú-CorpBanca of at least 50% plus one share at a price equal to the higher of the market price or fair value.

If Itaú Unibanco accepts the price proposed by CorpGroup Parent, CorpGroup Parent shall be obligated to cause Company Two to sell such number of Itaú-CorpBanca’s shares to Itaú Unibanco at such price.

In the event that Itaú Unibanco does not accept the price proposed by CorpGroup Parent and as a result, an agreement is not reached, then CorpGroup Parent shall be permitted to proceed with such Change of Control and Itaú Unibanco shall be entitled to unilaterally terminate the Shareholders’ Agreement during a period of 60 days after receipt of notice from CorpGroup notifying of the consummation of such Change of Control.

For purposes of the Shareholders’ Agreement, Change of Control shall mean, with respect to CorpGroup Parent, the Saieh Group ceasing to own, directly and indirectly, in a single transaction or in a series of related transactions, at least 50% plus one additional share of the issued voting stock of CorpGroup Parent.

In the event Itaú Unibanco issues or sells certain equity securities of Itaú Unibanco to any third-party as consideration for or in connection with a transaction or series of transactions involving the direct or indirect investment by Itaú Unibanco in such equity securities or assets of any other third party, Itaú Unibanco shall inform CorpGroup Parent of such issuance or sale and shall offer to

CorpGroup Parent the right to exchange for the same type of equity securities of Itaú Unibanco. CorpGroup Parent shall be entitled to exchange any or all of its shares of Company Two (or shares of Itaú-CorpBanca) for such equity securities of Itaú Unibanco at an exchange ratio that reflects the relative fair values of the relevant equity securities of Itaú Unibanco and the shares of Company Two or Itaú-CorpBanca, as the case may be.

Notwithstanding the foregoing, if the issuance of any such equity securities to CorpGroup Parent would result in Itaú Unibanco Participações S.A. ceasing to hold more than 50% of Itaú Unibanco’s voting equity, then CorpGroup Parent shall have the right to exchange no more than an amount of equity securities of Itaú Unibanco the issuance of which would not result in Itaú Unibanco Participações S.A. ceasing to hold more than 50% of Itaú Unibanco’s voting equity.

Notwithstanding the other provisions of the Shareholders’ Agreement, Itaú Unibanco shall have no obligation to purchase shares of Itaú-CorpBanca or Company Two, to the extent such purchase would, in and of itself, require Itaú Unibanco to make a tender offer for all of the outstanding shares of Itaú-CorpBanca.

If Itaú Unibanco ceases to be the Controlling Shareholder (as defined in Article 97 of the Chilean Securities Market Act) of Itaú-CorpBanca, prior to consummating any obligation pursuant to a provision of the Shareholders’ Agreement to purchase shares of Itaú-CorpBanca or Company Two from CorpGroup Parent which would result in Itaú Unibanco being the

Controlling Shareholder of Itaú-CorpBanca, Itaú Unibanco shall commence a tender offer to purchase a number of shares of Itaú-CorpBanca which would result in Itaú Unibanco being the Controlling Shareholder of Itaú-CorpBanca for the purchase price provided in such applicable provision of the Shareholders’ Agreement and shall in any event satisfy its obligation (whether through the tender offer or a subsequent purchase thereafter) within 90 calendar days.

During a period of eighteen months from the closing date of the Itaú-CorpBanca Merger, CorpGroup Parent shall have the right to (i) sell to Itaú Unibanco, a number of shares of Company Two representing in the aggregate up to 6.6% of all of the outstanding shares of Itaú-CorpBanca at a price equal to the market price as of the notice date of such put right; or (ii) cause Company Two to sell to Itaú Unibanco, through one of the mechanisms available on the Santiago Stock Exchange that only allows block sales, a number of shares of Itaú-CorpBanca representing up to 6.6% of all of the outstanding shares of Itaú-CorpBanca (in which event Itaú Unibanco will place an order to purchase such shares in the Santiago Stock Exchange at a price not less than such market price). If, as a result of the competitive bidding procedures of the Santiago Stock Exchange, the shares of Itaú-CorpBanca sold by Company Two are unexpectedly sold over the Santiago Stock Exchange to a third party other than Itaú Unibanco or any of its affiliates at a higher price, then CorpGroup Parent shall no longer have the right to repurchase such shares of Itaú-CorpBanca from Itaú Unibanco or one of its wholly-owned subsidiaries.

If the put right described above has been exercised, at any time and from time to time during the five-year period thereafter, CorpGroup Parent shall have the unconditional right either to (i) acquire from Itaú Unibanco a number of shares of Company Two up to the number of shares sold pursuant to the put right described above at the same price per share as was paid by Itaú Unibanco pursuant to such put right plus an annual interest rate at the ChileanÍndice de Cámara Promedio plus a spread that is not to exceed the lowest spread then being offered by Itaú-CorpBanca to non-governmental borrowers in Chile; or (ii) cause Itaú Unibanco to place an order on the Santiago Stock Exchange to sell to CorpGroup Parent and/or Company Two a number of shares of Itaú-CorpBanca of up to the number of shares of Itaú-CorpBanca sold to Itaú Unibanco pursuant to the put right described above at the same price per share as was paid by Itaú Unibanco pursuant to such put right plus an annual interest rate at the ChileanÍndice de Cámara Promedio plus a spread that is not to exceed the lowest spread then being offered by Itaú-CorpBanca to non-governmental borrowers in Chile. If, as a result of the competitive bidding procedures of the Santiago Stock Exchange, the shares of Itaú-CorpBanca sold by Itaú Unibanco or one of its wholly-owned subsidiaries are sold over the Santiago Stock Exchange to a third party at a higher price, then CorpGroup Parent and/or Company Two shall not have the right to repurchase such shares of Itaú-CorpBanca.

If either Itaú Unibanco or CorpGroup Parent commits a Material Breach of the Shareholders’ Agreement, or the Breaching Shareholder, the non-Breaching Shareholder shall have the right to give written notice to the Breaching Shareholder describing such Material Breach and demanding that the Breaching Shareholder cure the Material Breach by fully performing its obligation.

If the Breaching Shareholder has not cured its Material Breach within 50 calendar days after receipt of any such notice, the non-Breaching Shareholder shall have the unconditional right to (i) require the Breaching Shareholder to sell all of its shares to the non-Breaching Shareholder at a price per share equal to 80% of the market price as of the date of the notice exercising a call option and (ii) if the non-Breaching Shareholder is CorpGroup Parent, to sell to Itaú Unibanco all of its shares at a price per share equal to 120% of the market price as of the date of the notice exercising a put option.

Notwithstanding the foregoing, if the non-Breaching Shareholder is Itaú Unibanco, Itaú Unibanco may elect to purchase the maximum number of shares which would allow Itaú Unibanco to avoid making a public offer for all of the outstanding shares of Itaú-CorpBanca.

Neither Itaú Unibanco nor CorpGroup Parent shall, directly or indirectly, own, invest, control, acquire, operate, manage, participate or engage in any Banking Business in Chile, Colombia and the Republic of Panama other than (i) through its investment in the Itaú-CorpBanca and its subsidiaries and (ii) through anysociedad de apoyo al giro in which Itaú-CorpBanca has an ownership interest.

For purposes of the Shareholders’ Agreement, Banking Business shall mean providing (i) consumer financial products and/or services, including secured and/or unsecured consumer lending, consumer mortgage products, consumer card products, retail banking products and/or services, and consumer leasing; and/or (ii) deposit-taking services including both

consumer and commercial deposits, and payroll services; and/or (iii) credit and/or debit card transaction processing services (which transaction processing services, for the avoidance of doubt, include merchant acquiring); and/or (iv) commercial financial products and/or services, including bilateral and syndicated loans, trustee and depositary services; and/or (v) investment banking services; and/or (vi) financial advisory services related to the services described in clauses (i) through (v) above; and/or (vii) all businesses related or reasonably incidental thereto.

Notwithstanding the foregoing, the Shareholders’ Agreement permits the following activities: (i) providing consumer financing and other financial products or services offered from time to time by supermarkets and other nonbank retailers in the applicable jurisdiction; (ii) financing or providing asset management products and services; (iii) receiving from or providing to any third party a personal guaranty or a loan or engaging in other financial arrangements in connection with a transaction or transactions that does not otherwise constitute a Banking Business in Chile, Colombia or the Republic of Panama; (iv) making investments by or in employee retirement, pension or similar plans or funds or in companies that manage such plans or funds; (v) acquiring, owning, controlling or managing, in any third party that has any Banking Business in Chile, Colombia and the Republic of Panama pursuant to purchase, merger, consolidation or otherwise so long as (A) the Banking Business in Chile, Colombia or the Republic of Panama conducted by such third party or business constitutes not more than 10% of the revenues of such acquired third party or business and not more than 5% of the revenues of Itaú-CorpBanca, in each case for the immediately preceding 12 months, and (B) after consummation of such acquisition, Itaú-CorpBanca is offered the right to acquire such Banking Business for cash at the fair value thereof; (vi) acquiring, owning, controlling, managing, investing in any third party or business which would otherwise be prohibited under the non-compete obligation, provided that action is undertaken to sell the competing portion of such business; (vii) acquiring, owning, controlling, managing, investing in any third party that has any Banking Business in Chile, Colombia and the Republic of Panama or engaging in a new business opportunity in the Banking Business in Chile, Colombia, Peru and Central America, if such transaction or opportunity was presented by Itaú-CorpBanca to Itaú Unibanco, if Corp Group Parent is the investing party, or by Itaú-CorpBanca to Corp Group Parent, if Itaú Unibanco is the investing party, and Corp Group Parent or Itaú Unibanco, as the case maybe, withheld their consent to Itaú-CorpBanca consummating such transaction; (viii) providing products or services pursuant to any unsolicited request from any client that operates in Chile, Colombia and the Republic of Panama which cannot be reasonably provided by Itaú-CorpBanca or its subsidiaries or (ix) acquiring, owning, managing or investing in the MCC Entities (as defined in the Shareholders’ Agreement) or prohibit any activities currently conducted by the MCC Entities.

Neither Itaú Unibanco nor CorpGroup Parent shall, directly or indirectly, solicit for hire, hire or otherwise induce or attempt to induce any officer of Itaú-CorpBanca or any of its subsidiaries to leave the employment of Itaú-CorpBanca or any of its subsidiaries, or in any way interfere with the relationship between Itaú-CorpBanca or any of its subsidiaries, on the one hand, and any officer thereof on the other hand.

For a period of eight fiscal years starting from the closing of the Transaction, or the Dividend Period, Itaú Unibanco and CorpGroup Parent have agreed to cause Itaú-CorpBanca to adopt an annual business plan and budget expressly providing for the management of Itaú-CorpBanca and its subsidiaries in a manner that has as its primary target, in the following order of priority: (i) first, complying with the Optimal Regulatory Capital for such fiscal year, (ii) second, the payment by Itaú-CorpBanca of cash dividends aggregating at least US$370 million for each year during the Dividend Period and (iii) third, achieving a growth rate of the total assets of Itaú-CorpBanca and CorpBanca Colombia above the Minimum Growth Rate and other reasonable objectives as determined by the board of Itaú-CorpBanca. Itaú Unibanco and CorpGroup Parent have agreed to cause the board of Itaú-CorpBanca to cause management of Itaú-CorpBanca and its subsidiaries to conduct their respective businesses in accordance with such annual business plan and budget.

If the amount of the dividends paid in cash by Itaú-CorpBanca is less than US$370 million for any fiscal year during the Dividend Period, Itaú Unibanco and CorpGroup have agreed to cause Itaú-CorpBanca and its subsidiaries to maximize the use of Tier 2 capital, to the fullest extent permitted by applicable Law to increase its regulatory capital to the extent required to maintain Optimal Regulatory Capital requirements for such fiscal year.

Optimal Regulatory Capital means at any date, with respect to either Itaú-CorpBanca or CorpBanca Colombia, as the case may be, (a) the higher of (i) 120% of the minimum regulatory Capital Ratio required by applicable law of the applicable country and (ii) the average regulatory Capital Ratio of the three largest privately-owned banks (excluding the Itaú-CorpBanca and/or CorpBanca Colombia) (measured in terms of assets) in Chile or Colombia, as the case may be, in each case as of the last day of the most recent fiscal year multiplied by (b) the risk-weighted assets (including any risk-weighted assets of subsidiaries that are consolidated for purposes of calculating minimum regulatory Capital Ratio in such country) of the Itaú-CorpBanca or CorpBanca Colombia, as the case may be, as of the date one year from the last day of the most recent fiscal year assuming that such risk-weighted assets grow during such year at a rate equal to the Minimum Growth Rate.

Minimum Growth Rate for any year shall mean the minimum growth rate of the total assets of Itaú-CorpBanca and CorpBanca Colombia (determined in accordance with IFRS) for the applicable country (e.g., Chile or Colombia) determined in good faith by the board of directors of Itaú-CorpBanca (but in no event exceeding Forecasted System Growth in such country for such year) reasonably necessary to maintain the market share of Itaú-CorpBanca and CorpBanca Colombia (each measured in terms of assets in their respective countries) as of the last day of the immediately preceding year.

Itaú-CorpBanca shall pay an annual dividend equal to 100% of the annual cash distributable earnings, net of any reserves required to maintain Optimal Regulatory Capital, before March 31 of each Fiscal Year. If the portion of such dividend to be received by CorpGroup Parent is less than US$120 million in any fiscal year of the Dividend Period, CorpGroup Parent shall have the right, from and after the date that such dividend is declared to (i) sell to Itaú Unibanco, at a price per share equal to the market price as of the date of the notification to exercise this put right, a number of shares of Company Two equal to (A) US$120 million minus the portion of the annual dividend declared by Itaú-CorpBanca to be received by CorpGroup Parent, divided by (B) the market price of the shares of Itaú-CorpBanca as of the date of the notification to exercise this put right; or (ii) cause Company Two to sell to Itaú Unibanco, a number of shares of Itaú-CorpBanca equal to (A) US$120 million minus the annual dividend declared by Itaú-CorpBanca and to be received by CorpGroup Parent, divided by (B) the market price of such shares as of the date of the notification to exercise this put right. If, as a result of the competitive bidding procedures of the Santiago Stock Exchange, the shares of Itaú-CorpBanca sold by Company Two are unexpectedly sold over the Santiago Stock Exchange to a third party at a higher price, then CorpGroup Parent shall no longer have the right to repurchase such shares of Itaú-CorpBanca from Itaú Unibanco or one of its wholly-owned subsidiaries.

If the put right described above has been exercised, during the five-year period thereafter, CorpGroup Parent shall have the right either to (i) acquire from Itaú Unibanco, a number of shares of Company Two up to the number of shares sold pursuant to such put right at the same price per share as was paid by Itaú Unibanco plus an annual interest rate at the ChileanÍndice de Cámara Promedio plus a spread that is not to exceed the lowest spread then being offered by Itaú-CorpBanca to non-governmental borrowers in Chile; or (ii) cause Itaú Unibanco to place an order on the Santiago Stock Exchange to sell to CorpGroup Parent and/or Company Two a number of shares of Itaú-CorpBanca up to the number of shares sold to Itaú Unibanco pursuant to such put right at the same price per share as was paid by Itaú Unibanco plus an annual interest rate at the ChileanÍndice de Cámara Promedio plus a spread that is not to exceed the lowest spread then being offered by Itaú-CorpBanca to non-governmental borrowers in Chile. If, as a result of the competitive bidding procedures of the Santiago Stock Exchange, the shares of Itaú-CorpBanca sold by Itaú Unibanco or one of its wholly-owned subsidiaries are sold over the Santiago Stock Exchange to a third party at a higher price, then CorpGroup Parent and/or Company Two shall not have the right to repurchase such shares of Itaú-CorpBanca.

Itaú Unibanco and CorpGroup Parent have agreed that for so long as Itaú Unibanco owns shares of Itaú-CorpBanca, CorpBanca and its subsidiaries shall have a royalty-free, perpetual license to use the Itaú Brand, whether alone or in conjunction with other trademarks.

CorpGroup Parent has agreed to consent to and affirmatively vote its shares of Itaú-CorpBanca at any shareholders’ meeting in favor of the approval of a transaction between the Itaú-CorpBanca’s stock-broker (corredora) ~~Subsidiary~~subsidiary and MCC at such time as MCC is wholly owned by an Affiliate of Itaú Unibanco, transaction which may be structured as an acquisition of equity securities of MCC by Itaú-CorpBanca (followed by a merger of such ~~Subsidiary~~subsidiary and MCC).

Pursuant to the terms of the Shareholders’ Agreement, CorpGroup Parent and Itaú Unibanco intend to use Itaú-CorpBanca and its subsidiaries as their exclusive vehicle to pursue business opportunities in the Banking Business in Chile, Colombia, Peru and Central America. As a result, if either CorpGroup Parent or Itaú Unibanco, intends to pursue or develop any new business opportunities in the Banking Business in the abovementioned territories, either individually or with third parties, such party shall notify the other party and provide Itaú-CorpBanca with the exclusive right to pursue such business opportunity prior to presenting it to or pursuing it individually or with third parties. If CorpGroup Parent or Itaú-Unibanco, as the case may be, does not agree to Itaú-CorpBanca pursuing or continue to pursue or consummate such particular business opportunity within thirty (30) days following receipt of such notice, the other party shall have the right to pursue and implement it unilaterally and not through Itaú-CorpBanca.

If CorpGroup Parent agrees to Itaú-CorpBanca pursuing a business opportunity that would require a capital increase and/or a change in the dividend policy of Itaú-CorpBanca, Itaú Unibanco has agreed to provide CorpGroup Parent with long-term financing in an amount reasonably necessary as to finance its subscription of its pro rata share in such capital increase. If, on the other hand, CorpGroup Parent agrees to allow Itaú-CorpBanca to pursue and implement such business opportunity but decides not to participate in the capital increase in connection therewith, Itaú Unibanco will grant CorpGroup Parent a call option with respect to the number of shares that if purchased by CorpGroup Parent at such time would restore its direct and indirect ownership percentage of outstanding shares of Itaú-CorpBanca to its ownership percentage of outstanding shares of Itaú-CorpBanca immediately prior to such capital increase.

In respect of Itaú Unibanco’s Paraguay and Uruguay Operations, CorpGroup Parent and Itaú Unibanco have agreed to (i) negotiate in good faith the inclusion of their respective businesses in Paraguay and Uruguay as part of the business owned and operated by Itaú-CorpBanca, (ii) use their reasonable best efforts to agree on the valuation of such businesses in Paraguay and Uruguay and (iii) if CorpGroup Parent and Itaú Unibanco agree on the valuation of such businesses, to transfer to and operate such businesses by Itaú-CorpBanca.

On December 31, 2013 CorpBanca Colombia entered into a Note Purchase Agreement with the IFC, a member of the World Bank Group, and the IFC Capitalization (Subordinated Debt) Fund L.P., a Delaware Limited Partnership managed by the IFC Asset Management Company (collectively, the IFC Parties), by means of which CorpBanca Colombia issued bonds for an amount of up to US$170,000,000.00 at a variable interest rate, maturing on March 15, 2024, to be sold to the IFC Parties and the IFC Parties subscribed and paid in full the purchase price for the bonds pursuant to the terms and conditions stated therein.

On November 26, 2008, we entered into a contract with SMU, Rendic Hermanos S.A., Supermercados Bryc S.A. and Distribuidora Super Diez S.A., each a related party, to sublease CorpBanca space in order to install automatic teller machines in the supermarket chains administrated by the previously mentioned corporations. The contract covers a term from November 26, 2008 to June 30, 2019. CorpBanca prepaid the lessors UF1,152,213 for the total amount and term of the spaces subleased. For further information, see Note 32 to our consolidated financial statements included herein.

We have entered into a Systems Operations Services Agreement with IBM, initially dated March 30, 2001, and covering a term from April 1, 2001 through April 15, 2006 which can be renegotiated periodically. The ~~currently covers a term from~~current extension became effective on April 16, 2008 tountil April 30, 2018. Under this agreement, IBM provides outsourcing ~~Computer System Operations~~computer system operations services to us and we are obligated to pay fees amounting to ~~UF2,821.7~~UF 2,821.7 per month.

On July 6, 2001, we entered into a ~~Service Contract~~Services Agreement with our affiliate CorpGroup Interhold S.A. pursuant to which CorpGroup provides us with professional and technical consulting services including preparation of financial statements, implementing financial and administrative procedures; preparing, analyzing, and providing legal advisory services; and analyzing economic, financial sectors and feasibility of investment plans; we pay fees of approximately UF6,250 per month. On January 27, 2014, we entered into an amendment to the ~~Service Contract~~agreement which will take effect as of January 1, 2015. Pursuant to this amendment, the ~~Service Contract~~agreement will be extended for a further 10-year term beginning on January 1, 2015, subject to certain early termination provisions. Either ~~of the parties~~party may extend the term of the ~~Service Contract~~agreement for five additional years. Provisions for the payment of expenses were also included in this amendment.

On April 10, 2008, we entered into a ~~Service Contract~~Services Agreement with our affiliate CorpGroup Interhold S.A., pursuant to which CorpGroup provides us with professional and technical consulting services in the finance, capital markets, real estate and operations areas; we pay fees of approximately UF 1,350 per month. On January 27, 2014, we entered into an amendment to the ~~Service Contract~~agreement which will take effect as of January 1, 2015. Pursuant to the amendment, the ~~Service Contract~~agreement will be extended for a further 10-year term beginning on January 1, 2015, subject to certain early termination provisions. Either ~~of the parties~~party may extend the term of the ~~Service Contract~~agreement for five additional years, subject to certain conditions. Provisions for the payment of expenses were also included in this amendment.

On March 27, 2012, we entered into a ~~Service Contract~~Services Agreement with Mr. Álvaro Saieh Bendeck and our affiliate Corp Group Holding Inversiones Limitada, pursuant to which Corp Group Holding Inversiones Limitada provides us with professional and technical consulting services in all matters related to strategic planning and definitions, new businesses, including acquisitions in Chile or abroad, and management controls; we pay fees of approximately UF 1,250 per month. On January 27, 2014, we entered into an amendment to the ~~Service Contract~~agreement which will take effect as of January 1, 2015. Pursuant to the amendment, the ~~Service Contract~~agreement will be extended for a further 10-year term beginning on January 1, 2015, subject to certain early termination provisions. Either ~~of the parties~~party may extend the term of the Service Contract for five additional years, provided that on such date the services continue to be rendered with the participation of Mr. Álvaro Saieh Bendeck. Provisions for the payment of expenses were also included in this amendment.

We have entered into a Software Consulting and Development Agreement, for the Integrated Banking System (IBS), dated as of October 4, 2001, with Datapro, Inc. The contract covers a five-year term for system maintenance and adjustments, which is automatically renewable at the end of the term. The contract includes an initial charge for development and user license of US$380,000.00 and a schedule of additional fees for services provided as well as a monthly maintenance fee.

We have entered into an agreement to participate in the automated teller machine network operated by Redbanc S.A., dated as of April 1, 2001. The contract covers a three-year term which is automatically and successively renewed for equal three-year periods. The purpose of this agreement is to provide services to facilitate the performance of banking objectives. This includes the installation, operation, maintenance, and development of equipment, devices, systems, and services used for the management and operation of automated and non-automated cash and point-of-sale machines and the related services. Redbanc shall invoice and charge us a different monthly fee for each of the services connected to the automated teller machine network.

The Central Bank of Chile is responsible for, among other things, monetary policies and exchange controls in Chile. Foreign investments ~~can be registered with the Foreign Investment Committee under Decree Law No. 600 of 1974, as amended, or can~~must be registered with the Central Bank of Chile under theLey Orgánica Constitucional del Banco Central de Chile, or the Chilean Central Bank Act and theCompendio de Normas de Cambios Internacionales,, or the Central Bank Foreign Exchange Regulations or the Compendium. The Chilean Central Bank Act is a constitutional law requiring a “special majority” vote of the Chilean Congress to be modified.

~~The~~ Until January 1, 2016, foreign investments could be registered with theComité de Inversiones Extranjeras, or the Foreign Investment Committee under Decree Law No. 600 of 1974, as amended or DL 600, as an alternative to the registration with the Central Bank of Chile. The Tax Reform, however, repealed DL 600 as of January 1, 2016. As from 2016, the Foreign ~~Exchange Regulations were amended on April 19, 2001. The main objective of these amendments was~~Investment Committee shall not be entitled to ~~facilitate capital movements from and into Chile and encourage~~register new foreign ~~investment. According~~investments. All foreign investments previously registered with the Foreign Investment Committee under DL 600, shall continue to be subject to the ~~new~~provisions of DL 600.

Pursuant to the Central Bank Foreign Exchange Regulations, investors are allowed to freely enter into any kind of foreign exchange transaction, the only restriction being that investors must inform the Central Bank of Chile about certain operations which they have conducted and must conduct certain operations through the Formal Exchange Market. The ~~types~~type of information related to equity investment that must be reported to the Central Bank of Chile by non-Chilean residents include the occurrence of, among other things, any assignment, substitution, changes in organizational status, change in the form of the investment, or material changes to the terms of the agreement governing the foreign currency transaction. Transactions that are required to be conducted through the Formal Exchange Market include transactions involving foreign commercial bank loans or Chilean company issued bonds, deposits made in Chilean financial institutions by foreign depositors, and equity investments and contributions of capital by foreign investors. The Formal Exchange Market entities through which transactions are conducted will report such transactions to the Central Bank of Chile.

Pursuant to the provisions of Chapter XIV of the Compendium, it is not necessary to seek the Central Bank of Chile’s prior approval in order to establish an ADR facility. The Central Bank of Chile only requires that (i) any foreign investor acquiring shares to be converted into ADSs who has actually brought funds into Chile for that purpose shall bring those funds through the

Formal Exchange Market, (ii) any foreign investor acquiring shares to be converted into ADSs informs the Central Bank of Chile of the investment in the terms and conditions described below, (iii) all remittances of funds from Chile to the foreign investor upon the sale of the shares underlying the ADSs or from dividends or other distributions made in connection therewith, shall be made through the Formal Exchange Market, and (iv) all remittances of funds to the foreign investor, whether or not from Chile, shall be informed to the Central Bank of Chile in the terms and conditions described below.

When the shares to be converted into ADSs have been acquired by the foreign investor with funds brought into Chile through the Formal Exchange Market, a registration form shall be filed with the Department of International Financial Operations of the Central Bank of Chile by the foreign investor acting through an entity of the Formal Exchange Market on or before the date on which the foreign currency is brought into Chile. However, if the funds were brought into Chile with a

different purpose and subsequently were used to acquire shares to be converted into ADSs, the Department of International Financial Operations of the Central Bank of Chile then shall be informed of such investment by the Custodian within ten days following the end of each fifteen-day period on which the Custodian has to deliver periodic reports to the Central Bank of Chile. If the funds were not brought into Chile, a registration form shall be filed with the Department of International Financial Operations of the Central Bank of Chile by the foreign investor itself or through an entity of the Formal Exchange Market within first 10 days of the month following the date on which the proceeds were used. Any foreign investor (other than the depositary) who has acquired shares and wishes to convert the same into ADSs shall assign to the depositary, prior to any such conversion, any foreign investment rights it may have pursuant to Chapter XIV of the Compendium. Any such assignment shall be filed with the Central Bank of Chile within the first 10 days of the month following its execution.

All payments in U.S. dollars in connection with the ADS facility made from Chile shall be made through the Formal Exchange Market. Pursuant to Chapter XIV of the Compendium no previous authorization from the Central Bank of Chile is required for the remittance of U.S. dollars obtained in the sale of the shares underlying ADSs or from dividends or other distributions made in connection therewith. The entity of the Formal Exchange Market participating in the transfer shall provide certain information to the Central Bank of Chile on the next banking business day. In the event there are payments made outside Chile, the foreign investor shall provide the relevant information to the Central Bank of Chile directly or through an entity of the Formal Exchange Market within the first 10 days of the month following the date on which the payment was made.

Under Chapter XIV of the Compendium payments and remittances of funds from Chile are governed by the rules in effect at the time the payment or remittance is made. Therefore, any change made to Chilean laws and regulations after the date hereof will affect foreign investors who have acquired ADSs or shares to be converted into ADSs. There can be no assurance that further Central Bank of Chile regulations or legislative changes to the current foreign exchange control regime in Chile will not restrict or prevent foreign investors to purchase and remit abroad U.S. dollars, nor can there be any assessment to the duration or impact of such restrictions, if imposed.

This situation is different from the one governing ADSs issued by Chilean companies prior to April 19, 2001. Prior to such date, ADSs representing shares of stock of Chilean corporations were subject to Chapter XXVI of the Compendium, which addressed the issuance of ADSs by Chilean companies and foreign investment contracts entered into among the issuer of the shares, the Central Bank of Chile and the depository pursuant to Article 47 of the Central Bank Act. Chapter XXVI of the Compendium and the corresponding foreign investment contracts granted foreign investors the vested right to acquire dollars with the proceeds obtained in the sale of the underlying shares of stock, or from dividends or other distributions made in connection therewith and remit them abroad. On April 19, 2001, the Central Bank of Chile eliminated Chapter XXVI of the Compendium and made the establishment of new ADR facilities subject to the provisions of Chapter XIV of the Compendium. All foreign investment contracts executed under the provisions of Chapter XXVI of the Compendium remain in full force and effect and are governed by the provisions in effect at the time of their execution.

The foregoing is a summary of the Central Bank of Chile’s regulations with respect to the issuance of ADSs representing common shares as in force and effect as of the date hereof. This summary does not purport to be complete and is qualified in its entirety by reference to the provisions of Chapter XIV of the Compendium, a copy of which is available from CorpBanca upon request.

There can be no assurance that further Central Bank of Chile regulations or legislative changes to the current foreign exchange control regime in Chile will not restrict or prevent foreign investors from purchasing or remitting U.S. dollars, or that further restrictions applicable to foreign investors which affect their ability to remit the capital, dividends or other benefits in connection with the shares of stock will not be imposed by the Central Bank of Chile in the future, nor can there be any assessment to the duration or impact of such restrictions, if imposed.

The following discussion is based on material Chilean income tax laws presently in force, including Ruling No. 324 of January 29, 1990 of the Chilean Internal Revenue Service and other applicable regulations and rulings. The discussion summarizes the material Chilean income tax consequences of an investment in the ADSs or common shares received in exchange for ADSs by an individual who is not domiciled in or a resident of Chile or a legal entity that is not organized under the laws of Chile and does not have a permanent establishment located in Chile, which we refer to as a foreign holder. For purposes of Chilean law, an individual holder is a resident of Chile if he or she has resided in Chile for more than six months in one calendar year or for a total of more than six months, whether consecutive or not, in two consecutive tax years. An individual holder is domiciled in Chile if he or she resides in Chile with the purpose of staying in Chile (such purpose to be evidenced by circumstances such as the acceptance of employment within Chile or the relocation of his or her family to Chile). This discussion is not intended as tax advice to any particular investor, which can be rendered only in light of that investor’s particular tax situation.

Under Chilean law, provisions contained in statutes such as tax rates applicable to foreign holders, the computation of taxable income for Chilean purposes and the manner in which Chilean taxes are imposed and collected may be amended only by another statute. In addition, the Chilean tax authorities issue rulings and regulations of either general or specific application interpreting the provisions of Chilean tax law. Absent a retroactive law, Chilean taxes may not be assessed retroactively against taxpayers who act in good faith relying on such rulings and regulations, but Chilean tax authorities may change said rulings and regulations prospectively. There is no general income tax treaty in force between Chile and the United States (although a treaty has been signed it has not yet been ratified by ~~each country~~United States’ Congress and therefore is not yet effective).

Cash dividends paid by us with respect to the ADSs or common shares held by a foreign holder will be subject to a 35% Chilean withholding tax, which is withheld and paid over to the Chilean tax authorities by us. We refer to this as the Chilean withholding tax. A credit against the Chilean withholding tax is available based on the level of corporate income tax, or first category tax, actually paid by us on the taxable income to which the dividend is imputed; however, this credit does not reduce the Chilean withholding tax on a one-for-one basis because it also increases the base on which the Chilean withholding tax is imposed. In addition, distribution of book income in excess of retained taxable income is subject to the Chilean withholding tax, but such distribution is not eligible for the credit. In case such withholding is determined to be excessive at the end of the year, foreign holders will have rights to file for the reimbursement of the excess withholding. Under Chilean income tax law, for purposes of determining the level of the first category tax that has been paid by us, dividends generally are assumed to have been paid out of our oldest retained taxable profits. The first category tax rate is ~~20%.~~22.5% in 2015. The foregoing tax consequences apply to cash dividends paid by us. Dividend distributions made in property (other than common shares) will be subject to the same Chilean tax rules as cash dividends.

Gains realized on the sale, exchange or other disposition by a foreign holder of ADSs (or ADRs evidencing ADSs) will not be subject to Chilean taxation, provided that such disposition occurs outside Chile (confirmed by the Chilean IRS in ruling No. 1,307 of 2013). The deposit and withdrawal of common shares in exchange for ADRs will not be subject to any Chilean taxes.

Gains recognized on a sale or exchange of common shares received in exchange for ADSs (as distinguished from sales or exchanges of ADSs representing such common shares) by a foreign holder until December 31, 2016 will be subject to both the first category tax and the Chilean withholding tax (the former being creditable against the latter) if (1) the foreign holder has held such common shares for less than one year since exchanging ADSs for the common shares, (2) the foreign holder acquired and disposed of the common shares in the ordinary course of its business or as a regular trader of stock, or (3) the sale is made to a company in which the foreign holder holds an interest (10% or more of the shares in the case of ~~open stock corporations)~~Public Companies). A 35% withholding tax is imposed on the amount of the gains obtained on the sale or exchange of common shares received in exchange for ADSs, less a Chilean credit ~~tax (as a consequence of the Tax Reform, this special single tax system will not be available from 2017 and from that year the general regime will apply).~~tax. In all other cases, gain on the disposition of common shares will be subject only to the first category tax levied as a sole tax. However, in these latter cases, if it is impossible to determine the taxable capital gain, a 5% withholding will be imposed on the total amount to be remitted abroad without any deductions as a provisional payment of the total tax due.

From January 1, 2017 onwards, any gain obtained on the sale or exchange of common shares received in exchange for ADSs by a foreign holder will be subject to the Chilean withholding tax with a rate of 35%, which must be withheld by the purchaser. However, if it is impossible to determine the taxable capital gain, a 10% withholding will be imposed on the total amount to be remitted abroad without any deductions as a provisional payment of the total tax due.

The tax basis of common shares received in exchange for ADSs will be the acquisition value of such shares. The valuation procedure set forth in the deposit agreement, which values common shares that are being exchanged at the highest price at which they trade on the Santiago Stock Exchange on the date of the exchange, generally will determine the acquisition value for this purpose. Consequently, the conversion of ADSs into common shares and sale of such common shares for the value established under the deposit agreement will not generate a capital gain subject to taxation in Chile to the extent that the sale price is equal to the acquisition value at the time of redemption as discussed above. In the event the sale price exceeds the acquisition value of such shares determined as explained above, such capital gain will be subject to first category tax and the Chilean withholding tax as discussed above.

The distribution and exercise of preemptive rights relating to the common shares will not be subject to Chilean taxation. Amounts received in exchange for the shares or assignment of preemptive rights relating to the shares will be subject to both the first category tax and the Chilean withholding tax (the former being creditable against the latter to the extent described above).

According to Article 107 of the Chilean Income Tax Law, the sale and disposition of shares of Chilean public corporations which are significantly traded on a Chilean stock exchange is not levied by any Chilean tax on capital gains if the sale or disposition was made:

on a local stock exchange authorized by the SVS or in a tender offer process according to Title XXV of the Chilean Securities Market ~~Law,~~Act, so long as the shares (1) were purchased on a public stock exchange or in a tender offer process pursuant to Title XXV of the Chilean Securities Market ~~Law,~~Act, (2) are newly issued shares issued in a capital increase or incorporation of the corporation, (3) were acquired as a result of the exchange of convertible securities, or (4) were a contribution or redemption of securities in accordance with Article 109 of the Chilean Income Tax Law. In this case, gains exempted from Chilean taxes shall be calculated using the criteria set forth in the Chilean Income Tax Law; or

within 90 days after the shares would have ceased to be significantly traded on the stock exchange. In such case, the gains exempted from Chilean taxes on capital gains will be up to the average price per share of the last 90 days in which the shares were significantly traded on the stock exchange. Any gains above the average price will be taxable capital gains.

For purpose of the bullets above, shares are considered to be significantly traded on a Chilean stock exchange when they (1) are registered in the securities registry, (2) are registered in a Chilean Stock Exchange; and (3) have an adjusted presence equal to or above 25% or have a “Market Maker” according to the SVS Ruling No 327 dated January 17, ~~2007.~~2012. Currently, our shares are considered to be significantly traded on a Chilean stock exchange.

No Chilean inheritance, gift or succession taxes apply to the transfer or disposition of the ADSs by a foreign holder but such taxes generally will apply to the transfer at death or by a gift of common shares by a foreign holder. No Chilean stamp, issue, registration or similar taxes or duties apply to foreign holders of ADSs or common shares.

Upon request, we will provide to foreign holders appropriate documentation evidencing the payment of the Chilean withholding tax.

This section is a summary of certain U.S. federal income tax consequences applicable to the acquisition, ownership and disposition by a U.S. holder (as defined below) of ADSs or common shares. This summary applies to you only if you are a U.S. holder and you hold your ADSs or common shares as capital assets (generally, property held for investment) for U.S. federal income tax purposes. This summary is not a comprehensive description of all of the tax consequences that may be relevant to a decision to purchase, hold or dispose of our ADSs or common shares.

This section does not apply to you if you are a U.S. holder subject to special rules, including for example:

a dealer in securities;

a trader in securities that elects to use a mark-to-market method of accounting for securities holdings;

a regulated investment company;

a real estate investment trust;

a tax-exempt organization;

a bank or other financial institution;

a life insurance company;

a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) or a partner or owner therein;

a person liable for alternative minimum tax;

a person that actually or constructively owns 10% or more of the bank’s shares;

a person that holds ADSs or common shares as part of a straddle, a hedging, conversion or constructive sale transaction; or

a person whose functional currency is not the U.S. dollar.

This section is based on the Internal Revenue Code of 1986, as amended, or the Code, its legislative history, existing and proposed ~~regulations,~~U.S. Treasury Regulations, published rulings, and court decisions, all as of the date of this Annual Report. These laws are subject to change, possibly on a retroactive basis, and subject to differing interpretations. This summary does not address any U.S. state or local or non-U.S. tax considerations or any U.S. federal estate, gift or alternative minimum tax considerations.

On February 4, 2010, a comprehensive income tax treaty between the United States and Chile was signed, however such treaty has not yet been ratified by each country and therefore is not yet effective. It is unclear at this time when such treaty will be ratified by both countries. You should consult your tax advisor regarding the ongoing status of this treaty and, if ratified, the impact such treaty would have on the consequences described in this ~~Annual Report.~~annual report.

As used herein, the term “U.S. holder” means a beneficial owner of ADSs or common shares who is:

an individual who is a citizen or resident of the United States,

a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof, or the District of Columbia,

an estate whose income is subject to U.S. federal income tax regardless of its source, or

a trust if such trust validly elects to be treated as a United States person (as defined under the Code) for U.S. federal income tax purposes or if (1) a court within the United States is able to exercise primary supervision over its administration, and (2) one or more United States persons have the authority to control all of the substantial decisions of such trust.

If a partnership (or other entity treated as such for U.S. federal income tax purposes) holds the ADSs or common shares, the U.S. federal income tax treatment of a partner, member or owner of such entity will generally depend on the status of the partner, member or owner and the tax treatment of such entity. A partner, member or owner in an entity holding the ADSs or common shares should consult its tax advisor with regard to the U.S. federal income tax treatment of its investment in the ADSs or common shares.

Prospective investors should consult their tax advisors as to the particular tax considerations applicable to them relating to the acquisition, ownership and disposition of our ADSs or common shares, including the applicability of U.S. federal, state and local tax laws and non-U.S. tax laws.

The discussion below assumes that the representations contained in the deposit agreement are true and that the obligations in the relevant deposit agreement and any related agreement will be performed in accordance with the ~~terms.~~terms set forth therein. For U.S. federal income tax purposes, if you are a holder of ADSs, you generally will be treated as the owner of our common shares

represented by such ADSs. Accordingly, deposits or withdrawals of common shares for ADSs will not be subject to U.S. federal income tax. The U.S. Treasury Department has expressed concern that depositaries for ~~ADRs,~~depositary receipts, or other intermediaries between the holders of shares of an issuer and the issuer, may be taking actions that are inconsistent with the claiming of U.S. foreign tax credits by U.S. holders of such receipts or shares. These actions would also be inconsistent with claiming the reduced rate for “qualified dividend income” described below. Accordingly, the analysis regarding the availability of a U.S. foreign tax credit for Chilean withholding taxes and sourcing rules described below and availability of the reduced rate for qualified dividend income could be affected by future actions that may be taken by the U.S. Treasury Department.

Subject to the PFIC rules discussed below, if you are a U.S. holder, the gross amount of any distribution of cash or property (including the net amount of Chilean taxes withheld, if any, on the distribution, after taking into account the credit for first category tax, as discussed above under “—Chilean Tax Considerations—Cash Dividends and Other Distributions”), paid by the bank out of its current or accumulated earnings and profits (as determined for U.S. federal income tax purposes) will be includable in gross income as ordinary dividend income. You must include the net amount of Chilean tax withheld, if any, from such distribution in gross income even though you do not in fact receive it. The dividend is taxable to you when you, in the case of common shares, or the depositary, in the case of ADSs, receive the dividend, actually or constructively. Distributions in excess of current and accumulated earnings and profits, as determined for U.S. federal income tax purposes, will be treated as a non-taxable return of capital to the extent of your basis in the ADSs or common shares and thereafter as either long-term or short-term capital gain, depending on whether you have held our ADSs or common shares for more than one year at the time of the distribution. The bank does not currently maintain, and does not intend to maintain, calculations of our earnings and profits in accordance with U.S. federal income tax principles. Consequently, a U.S. ~~investor~~holder should treat the entire amount of any distribution received as a dividend. As used below, the term “dividend” means a distribution that constitutes a dividend for U.S. federal income tax purposes.

If you are a non-corporate U.S. holder, dividends paid to you may constitute qualified dividend income and be taxable to you at a reduced rate provided that (1) certain holding period requirements are met, (2) the ADSs or common shares are considered to be readily tradable on an “established ~~securities” market~~securities market” in the United States, and (3) the bank is not a PFIC. Under U.S. Internal Revenue Service, or IRS, authority, ADSs are considered for purposes of clause (2) above to be readily tradable on an established securities market in the United States because they are listed on the NYSE. Based on existing guidance, it is not entirely clear whether dividends received with respect to the common shares will be treated as qualified dividend income because the common shares are not themselves listed on a U.S. exchange. Moreover, as discussed below, under “—Passive Foreign Investment Company rules”, we believe that we will not be treated as a PFIC for U.S. federal income tax purposes with respect to our ~~2014~~2015 and current taxable year, and based on our current expectations regarding the value and nature of our assets, the sources and nature of our income, relevant market and shareholder data and our current business plans, we do not anticipate becoming a PFIC in the future. However, there can be no assurance in this regard because the PFIC determination is made annually and is based on the portion of our assets (including goodwill) and income that is characterized as passive under the PFIC rules and our continued qualification for an exception to the PFIC rules for certain foreign banks. You should consult your tax advisor regarding the availability of the reduced rate for dividends paid with respect to our ADSs or common shares. Dividends paid by us generally will not be eligible for the dividends-received deduction available to certain U.S. corporations.

The amount of the dividend distribution that you must include in your income as a U.S. holder will be the U.S. dollar value of the Chilean peso payments made, determined at the spot Chilean peso/U.S. dollar rate on the date the dividend distribution is actually or constructively received by you or the depositary, regardless of whether the payment is in fact converted into U.S. dollars at that time. If the dividend is converted to U.S. dollars on the date of receipt, a U.S. holder generally will not recognize a foreign currency gain or loss. However, if the U.S. holder converts the Chilean pesos into U.S. dollars on a later date, the U.S. holder must include in income any gain or loss resulting from any exchange rate fluctuations. The gain or loss will be equal to the difference between (1) the U.S. dollar value of the amount included in income when the dividend was received, and (2) the amount received on the conversion of the Chilean pesos into U.S. dollars. Generally, any gain or loss resulting from currency exchange fluctuations during the period from the date you include the dividend payment in income to the date you convert the payment into U.S. dollars will be treated as ordinary income or loss and will not be eligible for the reduced tax rate applicable to qualified dividend income. The gain or loss generally will be income or loss from sources within the United States for foreign tax credit limitation purposes. U.S. holders should consult their own tax advisors regarding the tax consequences to them if the bank pays dividends in Chilean pesos or any other non-U.S. currency. The amount of any distribution of property other than cash will be the fair market value of such property on the date of distribution.

Subject to certain limitations (including minimum holding period requirements), the net amount of Chilean income tax withheld and paid over to the Chilean taxing authorities (after taking into account the credit for first category tax, when available) will generally be creditable or deductible against your U.S. federal income tax liability. However, if the amount of Chilean withholding tax

initially withheld from a dividend is determined under applicable Chilean law to be excessive (as described above under “—Chilean Tax Considerations—Cash Dividends and Other Distributions”), the excess tax may not be creditable. Special rules apply in determining the foreign tax credit limitation with respect to dividends received by individuals that are subject to the reduced tax rate for qualified dividends. Dividends will be treated as income from sources outside the United States and generally be categorized as “passive category income” for most U.S. holders for U.S. foreign tax credit purposes. A U.S. holder that does not elect to claim a credit for any foreign income taxes paid during the taxable year may instead claim a deduction in respect of such foreign income taxes, provided that the U.S. holder elects to deduct (rather than credit) all foreign income taxes paid or accrued during the taxable year. This discussion does not address special rules that apply to U.S. holders who, for purposes of determining the amount of the foreign tax credit, take foreign income taxes into account when accrued. The rules governing foreign tax credits are complex and a U.S. holder should consult its own tax advisor regarding the availability of foreign tax credits under its particular circumstances.

Subject to the PFIC rules discussed below, if you are a U.S. holder and you sell, exchange or otherwise dispose of your ADSs or common shares in a taxable disposition, you will recognize capital gain or loss for U.S. federal income tax purposes equal to the difference between the U.S. dollar value of the amount that you realize and your tax basis, determined in U.S. dollars, in your ADSs or common shares. Any such gain or loss will be long-term capital gain or loss if your ADSs or common shares have been held for more than one year. Certain non-corporate U.S. holders (including individuals) may be eligible for preferential rates of U.S. federal income tax in respect of long-term capital gains. The deductibility of capital losses is subject to limitations.

If you are a U.S. holder of our ADSs or common shares, the initial tax basis of your ADSs or common shares will be the U.S. dollar purchase price or, if purchased in Chilean pesos, the U.S. dollar value of the Chilean peso-denominated purchase price determined on the date of purchase. If the common shares are treated as being traded on an “established securities market,” a cash basis U.S. holder, or, if it elects, an accrual basis U.S. holder, will determine the U.S. dollar value

of the cost of such common shares by translating the amount paid at the spot rate of exchange on the settlement date of the purchase. If you convert U.S. dollars to Chilean pesos and immediately use the currency to purchase common shares, such conversion generally will not result in taxable gain or loss to you.

The amount realized generally will be equal to the amount of cash or the fair market value of any other property received. With respect to the sale, exchange or other taxable disposition of our common shares, if the payment received is in Chilean pesos, the amount realized generally will be the U.S. dollar value of the payment received determined on (1) the date of receipt of payment in the case of a cash basis U.S. holder, and (2) the date of disposition in the case of an accrual basis U.S. holder. If our common shares are treated as being traded on an “established securities market,” a cash basis U.S. holder, or, if it elects, an accrual basis U.S. holder, will determine the U.S. dollar value of the amount realized by translating the amount received at the spot rate of exchange on the settlement date of the sale.

If a Chilean income tax is withheld on the sale, exchange or other taxable disposition of our ADSs or common shares, the amount realized by a U.S. holder will include the gross amount of the proceeds of that sale, exchange or other taxable disposition before deduction of the Chilean income tax. Capital gain or loss, if any, realized by a U.S. holder on the sale, exchange or other taxable disposition of ADSs or common shares generally will be treated as U.S. source gain or loss for U.S. foreign tax credit purposes. Consequently, in the case of a gain from the disposition of a common share that is subject to Chilean income tax, the U.S. holder may not be able to benefit from the foreign tax credit for that Chilean income tax (i.e., because the gain from the disposition would be U.S. source), unless the U.S. holder can apply the credit against U.S. federal income tax payable on other income from foreign sources. Alternatively, the U.S. holder may take a deduction for the Chilean income tax, provided that the U.S. holder elects to deduct all foreign taxes paid or accrued ~~for~~during the taxable year. The rules governing foreign tax credits are complex and a U.S. holder should consult its own tax advisor regarding the availability of foreign tax credits under its particular circumstances.

Based upon our current estimates, expectations and projections of the value and classification of our assets and the sources and nature of our income, we believe that the bank’s ADSs and common shares should not be treated as stock of a PFIC for U.S. federal income tax purposes for ~~2014,~~2015, our current taxable year or in the foreseeable future, including after the anticipated combination of the bank and Itaú Chile following the Itaú-CorpBanca Merger (which is expected to be consummated in 2016), but this conclusion is a factual determination that is made annually and there can be no assurance that we will not be considered a PFIC for the current taxable year or any subsequent taxable year. Our actual PFIC status for our current taxable year ending December 31, ~~2015~~2016 will not be determinable until after the close of ~~our current~~such taxable year ~~ending December 31, 2015~~ and, accordingly, there is no guarantee that we will not be a PFIC for ~~2015.~~2016.

In general, if you are a U.S. holder, the bank will be a PFIC with respect to you if for any taxable year in which you held the bank’s ADSs or common shares:

at least 75% of the bank’s gross income for the taxable year is “passive income”; or

at least 50% of the value, determined on the basis of a quarterly average, of the bank’s assets is attributable to assets that produce or are held for the production of passive income.

Passive income for this purpose generally includes dividends, interest, royalties, rents, annuities and gains from assets that produce passive income. We will be treated as owning our proportionate share of the assets and earnings and our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% by value of the stock of another corporation. If we are a PFIC for any year during which you hold our ADSs or common shares, you will generally be required to treat our ADSs or common shares as stock in a PFIC for all succeeding years during which you hold our ADSs or common shares, even if the bank does not otherwise meet the PFIC tests for any such succeeding year.

We are unable to determine with certainty that we are not a PFIC because the application of the PFIC rules to banks is unclear under present U.S. federal income tax law. Banks generally derive a substantial part of their income from assets that are interest bearing or that otherwise could be considered passive under the PFIC rules. The IRS has issued a notice and has proposed regulations, which together describe what is referred to as the “active bank exception.” For purposes of the PFIC test, the active bank exception ~~that exclude~~excludes from passive income any income derived in the active conduct of a banking business by a qualifying foreign bank. The IRS notice and proposed regulations each have different requirements for qualifying as a foreign bank and for determining the banking income that may be excluded from passive income under the active bank exception. Moreover, the proposed regulations have been outstanding since 1994 and will not be effective unless finalized.

We believe that we should qualify as an active bank under ~~both~~the requirements of the notice and the proposed regulations, assuming that the proposed regulations are finalized in their current form. Accordingly, based on our present regulatory status under Chilean law, the present nature of our activities and the present composition of our assets and sources of income, we do not

believe we were a PFIC for the taxable year ending December 31, ~~2014~~2015 (the latest period for which the determination can be made) and we also do not expect to be a PFIC for the current taxable year or for any future taxable years. However, if the Itaú-CorpBanca Merger is successfully consummated, whether we qualify as an active bank and whether we are a PFIC for the taxable year including such consummation and any subsequent taxable year will depend on the activities of the combined bank and, in part, on the composition of assets currently owned by Itaú Chile and the types of income that these assets generate in future taxable years. As a result, although we expect to qualify as an active bank and we do not expect to be a PFIC for the taxable year of the consummation of the Itaú-CorpBanca Merger and in subsequent taxable years, at this time there can be no assurance that this will be the ~~case~~case.

In addition, because a PFIC determination is a factual determination that must be made following the close of each taxable year and is based on, among other things, the market value of our assets and shares, and because the proposed regulations (although proposed to be retroactive in application) are not currently in force, our PFIC status may change and there can be no assurance that we will not be considered a PFIC for the current taxable year or any subsequent taxable year. If the bank is treated as a PFIC for any year in which you hold ADSs or common shares, and you are a U.S. holder that did not make a mark-to-market election, as described below, you will be subject to special rules with respect to:

any gain you realize on the sale, exchange or other taxable disposition (including certain pledges) of your ADSs or common shares; and

any “excess distribution” that the bank makes to you (generally, any distributions to you during a single taxable year that are greater than 125% of the average annual distributions received by you in respect of the ADSs or common shares during the three preceding taxable years or, if shorter, your holding period for the ADSs or common shares).

the gain or excess distribution will be allocated ratably over your holding period for the ADSs or common shares;

the amount allocated to the taxable year in which you realized the gain or excess distribution will be taxed as ordinary income;

the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year; and

the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or “excess distribution” cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the ADSs or common shares cannot be treated as capital, even if you hold the ADSs or ordinary shares as capital assets. If we were a PFIC, certain subsidiaries and other entities in which we have a direct or indirect interest may also be PFICs, or Lower-tier PFICs. Under attribution rules, U.S. holders would be deemed to own their proportionate shares of Lower-tier PFICs and would be subject to U.S. federal income tax according to the rules described above on (1) certain distributions by a Lower-tier PFIC and (2) certain dispositions of shares of a Lower-tier PFIC, in each case as if the U.S. holder held such shares directly, even though such U.S. holder had not received the proceeds of those distributions or dispositions.

Alternatively, a U.S. holder of “marketable stock” (as defined below) may make a mark-to-market election. If you make this election, you will not be subject to the PFIC rules described above. Instead, in general, you will include as ordinary income each year the excess, if any, of the fair market value of your ADSs or common shares at the end of the taxable year over your adjusted basis in your ADSs or common shares. These amounts of ordinary income will not be eligible for the reduced tax rates applicable to qualified dividend income or long-term capital gains. You will also be allowed to take an ordinary loss in respect of both (1) the excess, if any, of the adjusted basis of your ADSs or common shares over their fair market value at the end of the taxable year and (2) any loss realized on the actual sale or disposition of the ADSs or common shares, but in each case only to the extent of the net amount of previously included income as a result of the mark-to-market election. Any loss on an actual sale of your ADSs or common shares would be a capital loss to the extent it exceeds any previously included mark-to-market income not offset by previous ordinary deductions. Your basis in the ADSs or common shares will be adjusted to reflect any such income or loss amounts.

The mark-to-market election is available only for “marketable stock,” which is stock that is regularly traded in other thande minimis quantities on at least 15 days during each calendar quarter on a qualified exchange, including the NYSE, or other market, as defined in applicable regulations. The ADSs are listed on the NYSE, and we expect, although no assurance can be given, that they will be regularly traded on the NYSE. It is unclear whether the common shares will be treated as “marketable stock” for purpose of the mark-to-market rules. In addition, the mark-to-market election generally would not be effective for any Lower-tier PFICs. You are urged to consult your own tax advisors regarding the U.S. federal income tax consequences that would arise if we are treated as a PFIC while you hold ADSs or common shares.

Notwithstanding any election you make with regard to the ADSs or common shares, dividends that you receive from us will not constitute qualified dividend income to you, and therefore are not eligible for the reduced tax rate described above, if the bank is a PFIC either in the taxable year of the distribution or any preceding taxable year during which you held our ADSs or common shares. Instead, you must include the gross amount of any such dividend paid by us out of the bank’s accumulated earnings and profits (as determined for U.S. federal income tax purposes) in your gross income, and these amounts will be subject to tax at rates applicable to ordinary income.

If you directly (and, in some cases, indirectly) own ADSs or common shares that are treated as PFIC shares with respect to you during a taxable year, you will be required to file an annual report ~~on IRS Form 8621~~ for such taxable year.

In addition, if we are a PFIC, we do not intend to prepare or provide you with the information necessary to make a “qualified electing fund” election, which, like the mark-to-market election, is a means by which U.S. taxpayers may elect out of the tax treatment that generally applies to PFICs.

~~You are urged to consult your tax advisor regarding the application of the~~YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE APPLICATION OF THE PFIC ~~rules to your investment in ADSs or common shares, including the availability and advisability of making an election to avoid the adverse tax consequences of the~~RULES TO YOUR INVESTMENT IN ADSS OR COMMON SHARES, INCLUDING THE AVAILABILITY AND ADVISABILITY OF MAKING AN ELECTION TO AVOID THE ADVERSE TAX CONSEQUENCES OF THE PFIC ~~rules should we be considered a~~RULES SHOULD WE BE CONSIDERED A PFIC ~~for any taxable year.~~FOR ANY TAXABLE YEAR.

Pursuant to Sections 1471 through 1474 of the Code and U.S. Treasury Regulations promulgated thereunder, orcommonly referred to as FATCA, a 30% withholding tax may be imposed on all or some of the payments on the ADSs or our common stock after December 31, ~~2016~~2018 to holders and non-U.S. financial institutions receiving payments on behalf of holders that, in each case, fail to comply with information reporting, certification and related requirements. Under current guidance, the amount to be withheld is not defined, and it is not yet clear whether or to what extent payments on the ADSs or shares of our common stock may be subject to this withholding tax. This withholding tax, if it applies, could apply to any payment made with respect to the ADSs or our common stock. Moreover, withholding may be imposed at any point in a chain of payments if a non-U.S. payee fails to comply with U.S. information reporting, certification and related requirements. Accordingly, ADSs or shares of our common stock held through a non-compliant

institution may be subject to withholding even if the holder otherwise would not be subject to withholding. You should consult your tax advisor regarding potential U.S. federal withholding taxes imposed under FATCA.

If FATCA withholding is required, the ~~Bank~~bank will not be required to pay any additional amounts with respect to any amounts withheld. Certain beneficial owners of ADSs or our common stock that are not foreign financial institutions generally will be entitled to refunds of any amounts withheld under FATCA, but this may entail significant administrative burden. U.S. holders are urged to consult their tax advisers regarding the application of FATCA to their ownership of the ADSs or our common stock.

A 3.8% tax is imposed on the lesser of ~~(i)~~(1) modified adjusted gross income in excess of US$200,000 (US$250,000 for joint-filers), and ~~(ii)~~(2) net investment income of certain individuals, trusts and estates. For these purposes, net investment income will generally include any dividends paid to you with respect to the ADSs or common shares and any gain realized on the sale, exchange or other taxable disposition of an ADS or common share.

U.S. backup withholding tax and information reporting requirements generally apply to certain payments to certain non-exempt holders of ADSs or common shares. Information reporting generally will apply to payments of dividends on, and to proceeds from the sale or redemption of, ADSs or common shares made within the United States, or by a U.S. payor or U.S. middleman, to a holder of ADSs or common shares, other than an exempt recipient. A payor will be required to withhold U.S. backup withholding tax from any payments of dividends on, or the proceeds from the sale or redemption of, ADSs or common shares within the United States, or by a U.S. payor or U.S. middleman, to a holder, other than an exempt recipient, if such holder fails to furnish its correct taxpayer identification number or otherwise fails to comply with, or establish an exemption from, such U.S. backup withholding tax requirements.

Backup withholding is not an additional tax. Any U.S. backup withholding tax generally will be allowed as a credit against the holder’s U.S. federal income tax liability or, to the extent the withheld amount exceeds such liability, refunded upon the timely filing of a U.S. federal income tax return.

Certain U.S. investors are subject to reporting requirements in connection with the holding of certain foreign financial assets, including our ADSs or common shares that they own, either directly or through certain foreign financial institutions, but only if the aggregate value of all of such assets exceeds US$50,000. Such investors are subject to penalties if they are required to submit such information to the IRS and fail to do so. You should consult your tax advisor regarding the application of these new reporting requirements to your particular situation.

The above description is not intended to constitute a complete analysis of all tax consequences relating to the purchase, ownership or disposition of the ADSs or common shares. Investors deciding on whether or not to invest in ADSs or common shares should consult their own tax advisors concerning the tax consequences of their particular situations.

We are subject to the information requirements of the Exchange Act, except that as a foreign issuer, we are not subject to the proxy rules or the short-swing profit disclosure rules of the Exchange Act. In accordance with these statutory requirements, we file or furnish reports and other information with the SEC. Reports and other information filed or furnished by us with the SEC may be inspected and copied at the public reference facilities maintained by the SEC at Room 1024, 100 F Street, N.E., Washington, D.C. 20549, and at the SEC’s regional offices at 233 Broadway, New York, New York 10279 and Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material may also be inspected at the offices of the New York Stock Exchange, 11 Wall Street, New York, New York 10005, on which our ADSs are listed. In addition, the SEC maintains a

website that contains information filed electronically with the SEC, which can be accessed on the internet at http://www.sec.gov. The information contained on this website does not form part of this annual report on Form 20-F.

Additional documents concerning CorpBanca which are referred to in this ~~Annual Report~~annual report may be inspected at our offices at Rosario Norte 660, Las Condes, Santiago, Chile.

This section describes the financial risks, liquidity risks and market risks to which we are exposed in our business activities. Additionally, an explanation is included of the internal tools and regulatory methods used to control these risks, portfolios over which these market risk approaches are applied and quantitative disclosures that demonstrate our level of exposure to financial risk.

The principal types of risks inherent to our business are market, liquidity, operational and credit risk. The effectiveness with which we are able to manage the balance between risk and reward is a significant factor in our ability to generate long-term stable earnings growth. Our senior management places great emphasis on risk management.

Our policy with respect to asset and liability management is to maximize our net interest income and return on assets and equity while managing interest rate, liquidity and foreign exchange risks, all within the limits provided by Chilean banking regulations and internal risk policies and limits.

Our asset and liability management policies are developed by our Asset & Liability Committee or ~~our A~~“A&L ~~Committee,~~Committee”, following guidelines established by our ~~Board~~board of ~~Directors.~~directors. The A&L Committee is composed of eleven members, including one director, the CEO, the treasury and international division manager, the financial risk manager, our CFO, and the division managers of management control and planning, retail banking, non-banking financial services and commercial banking, represented by the managers of the corporate and commercial banking divisions. The role of the financial risk manager and the A&L Committee is to ensure that our treasury and international division’s operations are consistently in compliance with our internal risk policies and limits, as well as applicable regulations. The A&L Committee

typically meets ~~once~~twice per month. Senior members of our treasury and international division meet regularly with the A&L Committee and outside consultants to discuss our asset and liability position. The members of our financial risk management department are not employed in our banking operations or treasury and international division.

The market risk and control department’s activities consist of (i) applying Value at Risk, or VaR, techniques (as discussed below), (ii) marking to market our fixed income portfolio, derivatives portfolio and measuring daily profit and loss from trading activities, (iii) comparing VaR and other exposures against the established limits, and (iv) providing information about trading activities to the A&L Committee, other members of senior management and the treasury and international division.

Our financial risk analysis focuses on managing risk exposure relating to (i) the interest rate risk relating to fixed income portfolio (comprised of a “trading” portfolio and “an available-for-sale” portfolio), which contains mainly Chilean government bonds, Colombian government bonds, corporate bonds, letters of credit loans issued by third parties and interest rate derivatives, (ii) the interest rate risk relating to asset and liability positions, (iii) liquidity risk, and (iv) our net foreign currency position, which includes all of our assets and liabilities in foreign currencies (mainly U.S. dollars), including derivatives that hedge certain foreign currency mismatches that arise between investments and the funding thereof.

Market risk is the exposure to economic gains or losses caused by movements in prices and market variables. This exposure stems from both the trading book, where positions are valued at fair value, and the banking book, which is at amortized cost. The different valuation methodologies require the use of diverse tools to measure and control the impact on either the value of the Bank’s positions or its financial margin.

Decisions as to how to manage these risks are reviewed by committees, the most important of which is the A&L Committee.

Each of the activities are measured, analyzed and reported on a daily basis using different metrics to ascertain their risk profiles.

The following section describes the main risk factors along with the tools we use to monitor the most important impacts of market risk factors to which the ~~bank~~Bank and its subsidiaries are exposed.

Foreign exchange risk is the exposure to adverse movements in the exchange rates of currencies other than the base currency for all balance sheet and off-balance sheet positions.

Positions in foreign currency (FX) within the trading book,

Currency mismatches between assets and liabilities in the banking book,

Cash flow mismatches in different currencies, and

Structural positions produced from consolidating assets and liabilities from our foreign branches and subsidiaries denominated in currencies other than the Chilean peso. As a result, movements in exchange rates can generate volatility within the bank’s income statement and equity. This effect is known as “translation risk”.

Indexation risk is the exposure to changes in indexed units (e.g. UF,Unidad de Valor Real (UVR) or others) linked to domestic or foreign currency in which any instruments, contracts or other transactions recorded in the balance sheet may be denominated.

Interest rate risk is the exposure to movements in market interest rates. Changes in market interest rates can affect both the price of trading instruments and the ~~financial~~net interest margin and other gains from the banking book such as fees. Likewise, fluctuations in interest rates can affect the underlying value of the ~~bank’s~~Bank’s assets and liabilities and of derivative instruments that are recorded off balance sheet at fair value.

Interest rate risk can be represented by sensitivities to parallel and/or non-parallel yield shifts with the effects reflected in the prices of instruments, the financial margin and equity.

Movements in interest rates can be explained by at least the following risk factors:

Funding liquidity risk

A key component of our asset and liability policy is the management of interest rate sensitivity. Interest rate sensitivity is the relationship between market interest rates and net interest income due to the maturity or re-pricing characteristics of interest-earning assets and interest bearing liabilities. For any given period, the pricing structure is matched when an equal amount of such assets and liabilities mature or re-price in that period. Any mismatch of interest-earning assets and interest bearing liabilities is known as a gap position. A positive gap denotes asset sensitivity and means that an increase in interest rates would have a positive effect on net interest income while a decrease in interest rates would have a negative effect on net interest income. Accordingly, a negative gap

denotes asset sensitivity and means that a decrease in interest rates would have a negative effect on net interest income while an increase in interest rates would have a positive effect on net interest income.

Our interest rate sensitivity strategy takes into account not only the rates of return and the underlying degree of risk, but also liquidity requirements, including minimum regulatory cash reserves, mandatory liquidity ratios, withdrawal and maturity of deposits, capital costs and additional demand for funds. Our maturity mismatches and positions are monitored by our A&L Committee and are managed within established limits.

This risk arises from the possible prepayment (partial or full) of any transaction before its contractual maturity, generating the need to reinvest the freed cash flows at a different rate than that of the prepaid transaction.

This risk arises as a result of the Bank underwriting a placement of bonds or other debt instruments, taking on the risk of coming to own the portion of the issuance that could not be placed among potential interested parties.

Correlation risk is the exposure to changes in estimated correlations between the relative value of two or more assets, or a difference between the effective and estimated correlation over the life of the transaction.

Market liquidity risk is the exposure to losses as a result of the potential impact on transaction prices or costs in the sale or closure of a position. This risk is related to the particular market’s degree of depth.

In addition to the exposure related to the underlying asset, issuing options has other risks. These risks arise from the non-linear relationship between the gain generated by the option and the price and level of the underlying factors, as well as the exposure to changes in the perceived volatility of these factors.

The following principles govern the market risk management efforts of CorpBanca and its subsidiaries:

Business and trades are conducted in line with established policies, pre-approved limits, guidelines, procedure controls and clearly defined delegation of decision-making authority, in compliance with applicable laws and regulations.

The bank’s organizational structure must ensure effective segregation of duties so that trading, monitoring, accounting and risk measurement are performed and reported independently using a dual-control system.

Trading of new products and participation in new markets can only take place if all of the following occur:

The product has been approved by the Bank’s New Product Committee.

A full assessment has been conducted to determine if the activity falls within the bank’s general risk tolerance and specific commercial objectives.

Proper controls and limits have been set for that activity.

The limits, terms and conditions stipulated in the authorizations are monitored on a daily basis and any excesses are reported no later than the following day.

Trading positions are valued each day at fair value in accordance with the valuation policy.

All trades must be executed at current market rates.

Funding liquidity risk is the exposure of the bank and its subsidiaries to events that affect their ability to meet, in a timely manner and at reasonable costs, cash payment obligations arising from maturities of time deposits that are not renewed, withdrawals from demand accounts, maturities or settlements of derivatives, liquidations of investments or any other payment obligation.

Financial institutions are exposed to funding liquidity risk that is intrinsic to the role of intermediary that they play in the economy. In general, in financial markets demand for medium or long-term financing is usually much greater than the supply of funds for those terms while short-term financing is in considerable supply. In this sense, the role of intermediary played by financial institutions, which assume the risk of satisfying the demand for medium and long-term financing by brokering short-term available funds, is essential for the economy to function properly.

Appropriately managing funding liquidity risk not only allows contractual obligations to be met in a timely manner, but also enables:

~~the~~The liquidation of positions, when it so decides, to occur without significant losses.

~~the~~The commercial and treasury activities of the bank and its subsidiaries to be financed at competitive rates.

~~the~~The bank to avoid fines or regulatory ~~penalties~~santions for not complying with regulations.

Balancing strategic liquidity objectives with corporate profitability objectives, designing and implementing investment and financing strategies to compete with our key competitors.

Designing policies, limits and procedures in accordance with banking regulations, internal rules and CorpBanca’s strategic business objectives.

Establishing a robust framework for managing liquidity risk that guarantees that the entity will maintain sufficient liquidity, including a cushion of high-quality, unencumbered liquid assets that can be used to contend with a series of stress-generating events, including those that bring about losses or weaken sources of secured and unsecured financing.

Clearly establishing liquidity risk tolerance appropriate for its business strategy and its size within the financial system.

The bank has a financing strategy that promotes effective diversification of funding sources and maturities. It maintains a continuous presence in the funding market with correspondent banks and select customers, maintaining close relationships and promoting diversification of funding sources. It also keeps appropriate lines of financing available, ensuring its ability to obtain liquid resources quickly. The bank has identified the main factors of vulnerability that affect its ability to secure funds and monitors the validity of the assumptions behind estimates for obtaining funding.

CorpBanca actively manages its intraday liquidity positions and risks in order to punctually meet its payment and liquidation obligations both under normal circumstances as well as situations of stress, contributing to the smooth operations of the payment and settlement systems.

Credit default risk is the risk of loss arising from non-compliance by a given counterparty, for whatever reason, in paying all or part of its obligations with the Bank under contractually agreed-upon conditions. This risk also includes a given counterparty’s inability to comply with obligations to settle derivative operations with bilateral risk.

The ~~Bank~~bank diversifies credit risk by placing limits on the concentration of this risk in any one individual debtor, debtor group, product, industry segment or country. Such risks are continuously monitored and the limits by debtor, debtor group, product, industry and country are reviewed at least once per year and approved by the respective committees.

Exposure to credit risk is evaluated using an individual analysis of the payment capacity of debtors and potential debtors to meet their obligations on time and as agreed.

Furthermore, the ~~Bank~~bank has strict controls for derivative contracts negotiated directly with its counterparties. This exposure is managed using limits per customer based on a risk methodology equivalent to credit risk exposure. Lastly, the values of derivatives are adjusted to reflect the expected loss from the counterparty.

The Bank includes in the valuation of derivatives the “Counterparty Valuation Adjustment” (CVA), to reflect the counterparty risk in the determination of fair value.This valuation considers the Bank’s own credit risk, known as “Debit Valuation Adjustment” (DVA). See Note 34Financial Assets And Liabilities Measured At Fair Value.

The Bank should offset a financial asset and a financial liability and the net amount presented in the statement of financial position when and only when:

i.- currently has a legally enforceable right to set off the recognized amounts; and

ii.- intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

The bank includes assets and financial liabilities that have master netting agreements but do not qualify to be netting directly in the statement of financial position and hence their values are presented gross in that Statement.

According to the above, the following table shows the impact of the main assets and liabilities offset and those who maintain netting agreements (including financial guarantees), but do not qualify to be netting directly in the statement of financial position.

CorpBanca has anestablished a sound organizational structure for monitoring, controlling and managing market risks, based on the following principles:

Risk is monitored and controlled by parties independent from those managing risk, thus correctly aligning incentives.

Management efforts should be flexible, within the framework permitted by policies, rules and current regulations.

Senior management establishes the guidelines for risk ~~exposure,~~appetite, and

~~Senior management is~~Is informed periodically on risk levels assumed, contingencies and instances when limits are exceeded.

In order to guarantee the flexibility of management efforts and communication of risk levels to upper management, the following network of committees has been established:

Daily Committee: Meets daily to review financial conditions and the latest market movements. This committee reviews the relevance of positions on a daily basis in order to detect in advance any scenarios that could negatively impact returns and liquidity. It also monitors the performance of strategies used for each of the portfolios.

Market and Proprietary Trading Committee: Meets weekly to analyze management of positions. This committee reviews local and global economic conditions and projections in order to analyze the potential benefits and risks of the strategies executed and evaluate new strategies.

Financial Management Committee: Meets biweekly to analyze management of structural interest rate and indexation risk in the banking book.

Liquidity Management Committee: Meets biweekly to analyze management of funding liquidity risk.

A&L Committee: Meets biweekly to analyze economic and financial conditions and inform senior management of market and liquidity risk levels assumed by presenting indexes of market and funding liquidity risk, limit consumption and results of stress tests.

Board of ~~Directors:~~directors: The ~~Board~~board of ~~Directors~~directors is informed each quarter of the market and funding liquidity risk levels assumed by presenting established risk indexes, limit consumption and results of stress tests.

The ~~divisions~~Divisions in charge of managing market and funding liquidity risk are:

The Treasury Division is responsible for managing market risk. Its primary objective is to generate or conduct business with customers while its secondary function is to carry out proprietary trading.

The Finance and International Division is responsible for managing all structural risks in the markets in which it operates through the Financial Management and Liquidity Management Areas in order to provide greater stability to the financial margin and ensure suitable levels of solvency and liquidity.

As with the ~~corporate~~ structure for financial risk at a corporate level, each local financial risk unit arranges its functions based on the specific characteristics of the business, operations, legal requirements or other relevant aspects.

In order to guarantee adherence to corporate policies and proper local execution, the corporate financial risk area and local ~~financial risk~~ units have the following roles and functions:

To design, propose and document risk policies and criteria, corporate limits and decision making and control processes.

To generate management schemes, systems and tools, overseeing and supporting implementation so that they function effectively.

To know, assimilate and adapt internal and external best practices.

To drive commercial activity to attain risk-weighted results.

To consolidate, analyze and control financial risk incurred by all perimeter units.

To measure, analyze and control the risks under their responsibility.

To adapt and embrace corporate policies and procedures through local approval.

To define and document local policies and lead local projects.

To apply policies and decision-making systems to each market.

To adapt the organization and management schemes to corporate frameworks and rules.

The trading book consists of financial instruments that are allocated to diverse portfolios based on their strategy. The market risk of these instruments stems mainly from being recorded at fair value. As a result, changes in market conditions can directly impact their value. The following sections describe the monitoring and control structure for market risk in the trading book used during ~~2014.~~2015.

The ~~VaR~~Value at Risk (VaR) methodology is the main tool for controlling market risk in the trading book. Its appeal lies in its providing a statistical measurement of the maximum expected loss at a certain defined level of confidence, consolidating the risk exposures with the observed distribution of market factors.

The ~~bank~~Bank assigns global limits based on its activities in different markets. In addition, in order to complement these global limits, VaR sublimits are defined using diverse variables such as market volatility, volume, liquidity and return on ~~capital.~~capital are defined.

The following table presents the use of VaR during ~~2014~~2015 for the Bank and its Chilean and foreign subsidiaries. ~~The Chilean branch accounts~~

VaR ~~consumption~~ with ~~an average of Ch$1,927.30 million followed by CorpBanca Colombia with an average consumption of Ch$286.54 million.~~99% confidence level

VaR Statistics for Bank and Subsidiaries


(in millions of Ch$)

      VaR with 99% confidence level
      2014 2013 2012
      Minimum Average Maximum Last Last Last

Interest Rate
   97.98    283.17    708.36    694.96    329.88    247.03

Equity
   0.00    0.00    0.00    0.00    0.00    0.00

Foreing Exchange Rate
   0.54    33.69    194.13    21.33    11.00    25.28
CorpBanca Corredora de Bolsa S.A.

Total VaR
   21.08    43.85    87.42    39.46    62.74    39.77

Diversification Effect
   35.82    (34.34 ) (79.62 ) (21.43 ) (195.23 ) 105.37

Interest Rate
   (20.99 ) 34.05    92.02    24.78    51.65    26.17

Equity
   3.56    15.13    44.35    3.67    41.61    10.34

Foreing Exchange Rate
   2.69    29.01    30.66    32.44    39.23    29.10
CorpBanca New YorkBranch

Total VaR
   8.69    10.38    13.64    13.27    11.93    18.63

Diversification Effect
   0.00    0.00    0.00    0.00    0.00    0.00

Interest Rate
   8.69    10.38    13.64    13.27    11.93    18.63

Equity
   0.00    0.00    0.00    0.00    0.00    0.00

Foreing Exchange Rate
   0.00    0.00    0.00    0.00    0.00    0.00

The following graphs show the daily evolution of the VaR during ~~2014~~2015 for the Bank and its subsidiary in Colombia. As mentioned previously, the ~~VaR~~Var consumption of CorpBanca Chile (blue line) is consistently higher than CorpBanca Colombia (red line).

VaR backtesting is carried out at a local and corporate level by the different financial risk units. The backtesting methodology is applied consistently to all of the Bank’s portfolios. These exercises consist of comparing the estimated VaR measurements at a determined level of confidence and time horizon against the ~~actual~~real results of losses obtained during the same time horizon. The methodology used compares the results obtained without considering the intraday results or changes in positions within the portfolio. This method corroborates the individual models’ ability to value and measure the risks from the different positions.

The graphs below compare the bank’s daily VaR estimates and the realized P&L over a period of 300 days in order to probe the VaR measurements’ consistency (Kupiec’s frequency test). Indeed, about 99% of the realized P&L should lie within the ±99% VaR interval. Given the time period of 300 days, there should be an expected number of 3 excesses.

As seen below, CorpBanca Chile exhibited 2 exceptions over the considered time period, which corresponds to the Basel green zone.

The graph presented above shows VaR movements with data from 300 days of history and the Bank’s results in Chile. Based on the graph, during the time frame indicated, there were 2 exceptions over the daily VaR. The frequency or Kupiec test places the model within the green zone, which ~~suggests~~indicates that the model is correct and aligned with the hypotheses made and accepts exceptions generated with a frequency of close to 1%, which are also independent from one another.

The figure above illustrates an exception to the daily VaR. The frequency test places the model within the green zone, which indicates that there is no evidence for rejecting the model.

Measuring interest rate and currency sensitivity is one of the main tools for monitoring market risk in the trading book, enabling the Bank to break down, understand and report on the directional positions to which it is exposed.

Interest rate and currency sensitivity is monitored on a daily basis and is limited by the VaR limits established for each portfolio.

At the same time, exchange rate risk is controlled using notional limits, giving fluidity to currency products with customers and simultaneously limiting trading positions. The following table shows the current notional limits as well as closing positions as of year-end ~~2014,~~2015, and statistics for that year.

~~TABLE~~FIGURE 5: CURRENT LIMITS AND CONSUMPTION OF CURRENCY POSITIONS FOR ~~2014~~2015

The following tables show the trends in the most important currency positions managed in Chile, which are the U.S. dollar (USD) and the euro (EUR).

The graphs below show that the ~~USD-CLP~~USD-Ch$ and EUR-USD exposures of CorpBanca Chile ~~(blue line)~~ lie within the authorized ~~limits (range between the red lines).~~

The limit for Colombia uses an overall position for all currencies, which cannot exceed US$ 40 million (notional). The table below shows the aggregate position for Colombia.

~~TABLE~~FIGURE 8: EVOLUTION OF USD/~~CLP~~CH$ POSITION FOR ~~2014~~2015 CORPBANCA COLOMBIA

While the options portfolio is included in the VaR calculation described in the section above, the Bank also ~~uses additional limits to~~ controls the risks associated with the currency options ~~portfolio. These added~~portfolio with additional limits, which promote the product as a customer necessity, more than as trading positions.

Gamma Risk Limit or Effect of Convexity of Options

Vega Risk Limit or Effect of Variability of Area of Implied Market Volatility

The following ~~figures~~graphs show the use of limits as of year-end ~~2014,~~2015 and trends in their ~~use in Chile and the Colombian subsidiary.~~

The following figures show the use of Gamma and Vega limits as of year-end ~~2014,~~2015, for our subsidiary in Colombia.

   As of December 31, 2014
Index
   Limit    Value
   (in millions of Ch$)
Gamma Risk
   215       —
Vega Risk
   89       7

~~TABLE~~FIGURE 12: CONSUMPTION OF GAMMA AND VEGA RISK ~~2014~~2015 CORPBANCA COLOMBIA

Commercial, mortgage and consumer loans from the commercial areas.

Fixed-income instruments classified as available for sale or held to maturity.

Senior and subordinated bonds

Derivative instruments that qualify for hedge accounting: Derivatives that, meeting certain requirements, are given an accounting treatment different than those derivatives recorded in the trading book, the objective of which is to manage risks in the banking book.

The banking book’s main risks and the tools used to monitor, control and manage these risks are described below.

The banking book includes a portfolio of financial investments classified as available-for-sale instruments, used to manage structural interest rate risk in the balance sheet. Exposure to this type of investments is calculated using PV01 ~~(Present Value of 1bp, which is an indicator of the shift in asset value for a 1bp shift in the yield)~~ and VaR market value sensitivities, in order to continuously monitor the volatility of book basis equity.

Hedge accounting is used as an effective and relatively low-cost tool to manage this risk.

CorpBanca’s balance sheet presents a mismatch between inflation-indexed assets and liabilities. The Chilean market has more indexed assets than liabilities, which explains why the ~~bank~~Bank has a mismatch of inflation-indexed assets. This is due to the existence of medium and long-term indexed assets that are financed with liabilities in Chilean pesos.

Hedge accounting is used as an effective and relatively low-cost tool to manage this risk.

The following table shows the size of the mismatch as ~~of year-end 2014,~~December 31, 2015, and the mismatch statistics during the year.

~~TABLE~~FIGURE 15: INFLATION MISMATCH AS OF PERIOD-END ~~2014~~2015 AND STATISTICS FOR THE YEAR

The following ~~graph~~figure shows ~~trends in~~the evolution of this mismatch during ~~2014~~2015, and the ~~Bank’s~~ relative ease ~~in managing~~with which the Bank to manage this risk. ~~Throughout 2014, exposure remained~~During the course of the 2015 exhibition held at moderate levels.

The Annual Income Sensitivity ~~or AIS,~~(AIS) index measures the sensitivity of the interest margin to 100 bpbps variations in the ~~reinvestment~~repricing rate for assets and liabilities during the next 12 months. The established limits are much lower than the Bank’s ~~profit for the year.~~annual net income. During ~~2014,~~2015, the sensitivity risk in the interest margin in Chile has remained low with a positive sensitivity to drops in interest rates.

The Market Value Sensitivity ~~or MVS,~~(MVS) index measures the sensitivity of the economic value (fair value) of the banking book in the event of a 100 bpbps increase in the valuation rates of assets and liabilities.

The tables below show the evolution of sensitivity indicators for interest margins and economic capital for Chile and Colombia.

Structural exchange rate risk arises from the Bank’s positions in currencies other than the Chilean peso related primarily to the consolidation of investments in subsidiaries or affiliates and the ~~gains or losses from~~net income and hedges of these investments. The process of managing structural exchange rate risk is dynamic and attempts to limit the impact of currency depreciation, thus optimizing the financial cost of hedges.

The general policy for managing this risk is to finance them in the currency of the investment provided that the depth of the market ~~depth~~ so allows and the cost is justified by the expected depreciation. One-time hedges are also taken out when the Bank considers that any currency may weaken beyond market expectations with respect to the Chilean peso. As of December 31, ~~2014,~~2015, greater ongoing exposure was concentrated in Colombian pesos (approximately US$ 1.1 billion).

The Bank hedges part of these positions on a permanent basis using currency derivatives.

These exercises allow weaknesses in positions and the balance sheet structure to be diagnosed. From this, the Bank can create a critical factor plan to be used before such scenarios come about, or a contingency plan for when the scenarios have already taken place or the estimated probability of occurrence is high.

In addition, market stress tests can be performed to test trading book positions under diverse extreme scenarios in order to estimate the losses they would generate.

The results of the market stress tests on the trading book are reported periodically to the A&L Committee and the ~~Board~~board of ~~Directors.~~directors.

Stress tests conducted during ~~2014~~2015 indicated that none of the critical scenarios considered would affect the Bank’s solvency.

The list below enumerates some of the linear and historical sensitivity scenarios analyzed.

Market stress tests are also performed to test the banking book under diverse extreme scenarios in order to estimate the potential losses they would generate on both the interest margin and on capital.

Results of the market stress tests on the banking book are disclosed periodically to the A&L Committee and the ~~Board~~board of ~~Directors.~~directors.

For the calculation of VaR, the non-parametric method of historical simulation is used, which consists of using a historical series of prices and the position at risk from the trading book.

A time series of simulated prices and yields is constructed with the assumption that the portfolio was conserved for the period of time of the historical series. The VaR tries to quantify a threshold of expected losses, which should only occur a certain percentage of times based on the level of confidence used in the calculation.

Sources of rate risk include forwards, swaps and options. Rate sensitivity is calculated and reported by portfolio, by relevant discount curve and by maturity.

The present value of the portfolio is stressed by 1 bp. In other words, the present value is calculated by increasing the respective discount rate by 1 bp. The sensitivity of options is calculated using the theta value.

The variation in the present value of the portfolio corresponds to its sensitivity at a variation of one basis point (bp).

DV01 : Sensitivity to 1 bp variation in rate i at band m.

PV : Present value of portfolio’s cash flows.

PV’im : Present value of portfolio’s cash flows with shock of 1 bp in rate i at time band m.

Pim : Net position in ~~CLP~~Ch$ at time band i, currency m.

rim : Representative rate of currency m, time band i.

Ti : Representative maturity of time band i.

Sources of exchange rate risk come from both balance sheet and off-balance sheet positions such as derivatives.

Currency or position sensitivity corresponds to the market valuation of each cash flow in the currency of origin. That is, the cash flows in foreign currency expressed at present value.

PV : Present value of portfolio’s cash flows.

PV’m : Present value of portfolio’s cash flows with shock of 1 unit in exchange rate of currency m with respect to USD.

Sources of indexation risk come from both balance sheet and off-balance sheet positions such as derivatives that, as a result of a change in indexation units (UF, UVR or others), impact the Bank’s ~~profit for the year.~~net income.

As with currency sensitivity, indexation sensitivity is the market valuation of each indexed cash flow. That is, cash flows in indexation units expressed at present value.

PV : Present value of portfolio’s cash flows.

PV’m : Present value of portfolio’s cash flows with shock of 1 unit in indexation unit.

This measures the impact caused by a movement of 100 bp, over a twelve-month horizon, in the Bank’s financial margin (interest earned less interest paid).

The information required to calculate the index is obtained from the regulatory cash flows of the market risk data from the balance sheet book (regulatory report C40) only considering the time bands up to and including 1Y.

Pim : Net position in ~~CLP~~Ch$ in respective time band.

Dr : Variation of 100 bp.

Ti : Representative maturity of time band i.

This measures the sensitivity of the market value of the cash flows associated with assets and liabilities in the event of a parallel change of 100 bp in the relevant discount curve.

The information required to calculate the index is obtained from the cash flows of the Bank’s entire portfolio using data from the banking book.

The present value of the aggregate flows are discounted using the average terms of the respective time bands. Then the present value is calculated similarly with a shock increasing the respective discount rate by 100 bp.

MVS : Market Value Sensitivity.

PVim : Present value of the cash flows of time band i, currency m.

PV’im : Present value of the cash flows of time band i, currency m, with a shock of 100 bp in discount rates.

Pim : Net position in ~~CLP~~Ch$ at time band i, currency m.

rim : Representative rate of currency m, time band i.

Ti : Representative maturity of time band i.

Regulatory monitoring of market risk exposure is measured in accordance with chapter ~~III.B.2~~III.B.2.2 of the Compendium of Financial Standards from the Chilean Central Bank ~~of Chile~~ and chapter ~~12-9~~12-21 of the ~~Regulations~~Updated Compilation of Standards from the ~~SBIF~~Superintendency of Banks and Financial Institutions for both the trading book and the banking book. In the trading book, the impact is measured in the event of a change in the market price of its financial positions as a result of variations in interest rates, exchange rates and volatility. In the banking book, the impact is measured on the entity’s financial margin and present value.

The limits established for the trading book are for exposure to interest rate risk and exchange rate risk. The difference between the regulatory capital recorded by the financial institution and the sum of the following two items cannot be negative: (i) the product of the credit risk-weighted assets defined in article 67 of the Chilean General Banking ~~Law~~Act and the minimum percentage established for regulatory capital in article 66 of that law, and (ii) the sum of the trading book’s exposure to interest rate risk and the exchange rate risks for the entire balance sheet measured in accordance with the ~~Basel~~

Basel standard methodology with some important differences where exchange rate exposure stands out. As indicated in the paragraph above, the Bank must always comply with the following ratio:

Market risk exposure in accordance with regulatory methodology is detailed below:

The market risk presented in the table above (measured in units of risk-weighted assets) shows that capital consumption related to the Bank’s exposures to market risks is explained in more than 83% of the cases by the effect of our investment in Banco CorpBanca Colombia. As of December ~~2014,~~2015, this investment amounted to approximately US$ ~~1.1 billion.~~815 million. This exposure to exchange rate risk —Chilean peso vs. Colombian peso— is considered structural in the sense that it arises from a long-term investment.

It is also worth mentioning that in accordance with Chilean ~~regulations,~~regulations; a sensitivity factor of 35% is applied to net exposures in foreign currencies of countries other than those classified as AAA or ~~an equivalent rating.~~their equivalent. The standard sensitivity factor in the Basel standards is only 8%. As a result, the capital consumption that the Bank must report to comply with local regulations is more than 4 times greater than if international recommendations were applied.

The regulatory model for market risk in Colombia, as in Chile, is based on the standard Basel model, separated into risk factors (i.e. interest rate, exchange rate and stock price). The volatilities applied to each of the factors are established by regulators. This result is used for the solvency margin, to which a factor equivalent to 100/9 is applied.

Chilean regulations also require banks to establish limits for their market risk exposure in their banking book, which includes limits based on sensitivity in the financial margin and volatility in its equity value. Measurement of exposure to interest rate and indexation risks in the banking book must consider both the short-term impact on the capacity to generate net interest and indexation income and the fees sensitive to changes in interest rates, as well as the long-term impact on the institution’s economic value of adverse movements in interest rates.

The banking book’s exposure to the net interest and indexation margin is known as the short-term limit and cannot exceed 35% of the accumulated interest and indexation margin, plus fees sensitive to interest rates charged in the twelve months prior to the date of measurement. The exposure of capital to changes in interest rates has a long-term limit that cannot exceed 20% of regulatory capital. Both limits were presented and ratified by the Bank’s ~~Board~~board of ~~Directors.~~directors.

The exposure of regulatory limits in the banking book for Chile isare detailed as ~~follows.~~follows:


~~SHORT-TERM LIMIT (in millions of Ch$)~~	~~December 31,~~ ~~2014~~
~~Financial Margin plus Fees (12 months)~~		~~373,118~~
~~Percentage over financial margin~~		~~35.0~~	%
~~Short-term limit~~		~~130,591~~
~~Consumption with respect to financial margin~~		~~17.4~~	%

~~LONG-TERM LIMIT (in millions of Ch$)~~	~~December 31,~~ ~~2014~~
~~Exposure~~		~~266,394~~
~~Rate risk~~		~~266,394~~
~~Limit~~		~~414,329~~
~~% Consumption~~		~~64.3~~	%

~~Regulatory capital (RC)~~		~~2,071,647~~
~~Percentage over margin~~		20	%
~~Long-term limit~~		~~414,329~~
~~Consumption with respect to RC~~		~~12.9~~	%

Finally, regulatory provisions in Colombia do not establish methodologies for determining market risk exposure for the banking book. However, ~~it is~~they are monitored, controlled and reported on a daily basis using the internal methodologies described above.

Our general policy is to maintain sufficient liquidity to ensure our ability to honor withdrawals of deposits, make repayments of other liabilities at maturity, extend loans and meet any other obligation. In order to comply with risk management objectives for funding liquidity risk, the monitoring and control structure is centered mainly on the ~~following:~~following focal points:

Short-term maturity mismatch

Coverage capacity using liquid assets

Concentration of funding sources

Additionally, the monitoring and control structure for liquidity risk is complemented with stress testing in order to observe the institution’s ability to respond in the event of illiquid conditions.

In order to safeguard the Bank’s payment capacity in the event of illiquid conditions; a minimum has been established for the instrument portfolio that enables cash flows to be quickly generated either through liquidation or because they can be used as collateral for new funding sources.

The limit ~~for~~on the ~~liquidity~~ coverage ratio of liquidity is 50% of the ~~30-day mismatch in consolidated currency.~~mismatches of 30 days (consolidated currency).

The composition of liquid assets as of year-end December ~~31, 2014,~~2015, after applying the respective price volatility haircuts and market liquidity adjustments is presented in the table below.

Investment Portfolio Chile December 31, 2014
   Liquid Assets in Domestic
Currency (30 days)    Liquid Assets in Foreign
Currency (30 days)    Total Liquid Assets
Bank bonds
   198       17,967       18,165
Repo agreements
   (677 )    —         (677 )
Average reserves required
   (83,500 )    (18,070 )    (101,570 )
Liquid assets
   1,257,244       331,261       1,588,505
Figures in millions of Ch$

In order to control concentration of funding sources and safeguard compliance with obligations, the Bank monitors maturities of deposits in Chilean pesos by wholesale customers. This monitoring is conducted with a daily limit of ~~Ch$~~MCh$50,000 ~~million~~ in maturities per day.

They individually could represent an important percentage of CorpBanca’s business.

Given the profile of these customers in the wholesale segment, the renewal rate for these deposits tends to be lower. This last reason is consistent with cash disbursement models in regulatory reports, which do not assume that wholesale customers will renew deposits.

The maturity profile for wholesale deposits is monitored on a daily ~~basis.~~basis for every country. As a result, excesses are detected and reported based on the structure of the maturity profile. Forecasted excesses must be justified the day after they are reported and must then be managed.

In addition to monitoring and reporting all internal limits on a daily basis, senior management is informed each month through the A&L Committee and the ~~Board~~board of ~~Directors~~directors is informed each quarter. Special importance is placed on the Bank’s liquidity position by presenting an analysis of measurements of concentration, performance, premiums paid and/or other relevant variables.

Monitoring of variations in the stock of short-term funding such as time and demand deposits for each of the segments represents a key variable in monitoring the Bank’s liquidity. Identifying abnormal volatilities in these funding sources enables the Bank to quickly foresee possible undesired liquidity problems and thus to suggest action plans for managing them.

During ~~2014,~~2015, different strategies were implemented to diversify liabilities, including: diversifying time deposits, expanding stable funding sources such as on-line time deposits by individuals and issuing bonds.

These strategies enabled the Bank to continue to improve its funding structure, providing more stable funding.

As a function of stressed maturities and renewal ratios, days of survival are estimated based on projected liquidity needs and the portfolio of available liquid assets. Based on these scenarios, any significant deviation is studied to determine whether action plans need to be implemented.

Stress testing is a tool that complements the analysis of liquidity risk management as it enables the Bank to know its ability to respond in the event of extreme illiquid conditions and to trigger its contingency plans, if necessary, to address such conditions.

Individual Crisis: the financial system losses confidence in the Bank, which translates into important withdrawals from demand accounts, decreases in deposits and bond investments by customers and penalties to its funding rates.

Systemic Crisis: Local weakening of financial and credit conditions that causes the market to seek refuge in the U.S. dollar, greater restrictions on access to credit from abroad, massive outflows of capital, increases in the use of lines of credit and downward adjustments in expectations for the monetary policy rate.

Global Crisis: Global weakening of financial, credit and economic conditions that causes the market to seek refuge in the U.S. dollar, greater restrictions on access to credit from abroad, decreased exposure to credit risk (replaced by sovereign risk), increases in the use of lines of credit and downward adjustments in expectations for the monetary policy rate.

In accordance with ~~chapter~~Chapter III B.2 from the Chilean Central Bank ~~of Chile~~ and ~~chapter~~Chapter 12-9 of the ~~Regulations~~Updated Compilation of Standards from the SBIF, the Bank must measure and control its liquidity position based on the difference between cash flows payable from liability and expense accounts and cash flows receivable from asset and income accounts for a given period or time band, which is called maturity mismatch.

This measurement is determined for controlling the liquidity position of the Bank itself and of its subsidiaries. The maturity mismatch calculation is carried out separately for domestic and foreign currency, setting limits based on capital and cash flows accumulated at 30 and 90 days:

The maturity mismatch in all currencies for periods less than or equal to 30 days must be less than or equal to the Bank’s basic capital.

The maturity mismatch in foreign currencies for periods less than or equal to 30 days must be less than or equal to the Bank’s basic capital.

The maturity mismatch in all currencies for periods less than or equal to 90 days must be less than or equal to twice the Bank’s basic capital.

In full compliance with the Chilean Central Bank ~~of Chile~~ and the SBIF, CorpBanca’s ~~Board~~board of ~~Directors~~directors approved a policy to measure and control its liquidity position based on maturity mismatches on an adjusted basis with a 10% cushion with respect to the regulatory limit.

The table below shows the use of internal mismatch limits as of December 31, ~~2014~~2015 and some consumption statistics for the year.

Figures 27, 28 and 29 show the evolution of consumption for each limit in ~~2014.~~2015.

~~TABLE~~FIGURE 27: EVOLUTION OF CONSOLIDATED MISMATCH IN ALL CURRENCIES AT 30 DAYS DURING ~~2014~~2015

~~TABLE~~FIGURE 28: EVOLUTION OF CONSOLIDATED MISMATCH IN ALL CURRENCIES AT 90 DAYS DURING ~~2014~~2015

~~TABLE~~FIGURE 29: EVOLUTION OF CONSOLIDATED MISMATCH IN FOREIGN CURRENCIES AT 30 DAYS DURING ~~2014~~2015

In the Colombian market, the regulatory measurement known as the standard LRI model measures 7 and 30-day liquidity gaps. It allows entities to quantify the level of minimum liquid assets, in domestic and foreign currency, that they should maintain each day in order to, at a minimum, meet their payment obligations fully and on time. Entities must be capable of measuring and forecasting the cash flows of their assets, liabilities, off-balance sheet positions and derivative instruments for different time horizons in both normal scenarios and crisis scenarios where cash flows vary significantly from expectations as a result of unforeseen changes in markets, the entity or both.

The following ~~tables~~figures show the evolution of the 7 and 30 day liquidity gaps in Colombia in ~~2014.~~2015.

We enter into transactions involving derivative instruments particularly foreign exchange contracts, as part of our asset and liability management and in acting as a dealer to satisfy our clients’ needs. These transactions arise from forward exchange contracts which are of two types: (i) transactions covering two foreign currencies and (ii) transactions covering Chilean pesos against the U.S. dollar.

Foreign exchange forward contracts involve an agreement to exchange the currency of one country for the currency of another country at an agreed-upon price and settlement date. These contracts are generally standardized contracts, normally for periods between 1 and 180 days and are not traded in a secondary market; however, in the normal course of business and with the agreement of the original counterparty, they may be terminated or assigned to another counterparty.

When we enter into a forward exchange contract, we analyze and approve the credit risk (the risk that the counterparty might default on its obligations). Subsequently, on an ongoing basis, we monitor the possible losses involved in each contract. To manage the level of credit risk, we deal with counterparties of good credit standing, enter into master netting agreements whenever possible and, when appropriate, obtain collateral.

The Central Bank of Chile requires that foreign exchange forward contracts be made only in U.S. dollars and other major foreign currencies. Most of our forward contracts are made in U.S. dollars against the Chilean peso or the UF. In September 1997, the Central Bank of Chile changed its regulations with respect to foreign currency forward contracts. We may now enter into foreign currency forward contracts with companies organized and located outside of Chile, including foreign subsidiaries of Chilean companies.

Unrealized gains, losses, premiums and discounts arising from foreign exchange forward contracts are shown under other assets and other liabilities.

The following table summarizes our derivative portfolio as of December 31, ~~2012,~~ 2013, 2014 and ~~2014:~~2015:


	As of December 31, 2015
	Notional
	Up to 3 months		3 months to 1 year		Over one year		Fair Value
	(in million of Ch$)
Foreign Currency Forwards		5,295,033		3,044,798		624,735		225,986
Interest Rate Swap		1,255,296		2,232,986		10,173,202		318,817
Foreign Currency Swap		37,925		110,613		3,044,960		458,946
Foreign Currency Call Options		83,343		87,933		—		4,655
Foreign Currency Put Options		32,766		25,800		—		511

Total		6,704,363		5,502,130		13,842,897		1,008,915

(C)	Corresponds to the net effect of fair value are recorded in the income statement, except where they have effects in the previous year, see paragraph (d). See note 7 for 2013 and note 8 for 2014 and 2015 to our financial statements.

Effective as of May 7, 2012, Deutsche Bank Trust Company Americas serves as the depositary for our ADSs. Holders of the ADRs are required to pay the fees set forth in the table below to the depositary, and the depositary may refuse to provide any service for which a fee is assessed until the applicable fee has been paid. The depositary may decide, in its sole discretion, to seek payment by either billing holders or by deducting the fee from one or more cash dividends or other cash distributions.

Any other charges and expenses of the depositary under the deposit agreement will be paid by ~~the Company~~CorpBanca upon agreement between the depositary and ~~the Company.~~CorpBanca. All fees and charges may, at any time and from time to time, be changed by agreement between the depositary and the Company but, in the case of fees and charges payable by ADS holders and beneficial owners, only in the manner contemplated by ~~Article~~article 20 of the ADR.

The depositary reimburses ~~the Company~~CorpBanca for certain expenses incurred by ~~the Company~~CorpBanca that are related to the ADR facility upon such terms and conditions as ~~the Company~~CorpBanca and the depositary have agreed and may hereinafter agree from time to time. The depositary may make available to ~~the Company~~CorpBanca a set amount or a portion of the depositary fees charged in respect of the ADR facility or otherwise upon such terms and conditions as ~~the Company~~CorpBanca and the depositary may agree from time to time.

There have been no defaults, dividend arrearages or delinquencies in any payments for the year ended December 31, ~~2014.~~2015.

There have been no material modifications to the rights of security holders for the year ended December 31, ~~2014.~~

As of December 31, ~~2014,~~2015, CorpBanca, under the supervision and with the participation of our management, including the CEO and the CFO, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). There are inherent limitations to the effectiveness of any control system, including the possibility of human error and the circumvention or overriding of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can provide only reasonable assurance of achieving their control objectives.

Based upon the evaluation, our CEO and CFO concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective in ensuring that information relating to us, including our consolidated subsidiaries, required to be disclosed in the reports that we file under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to the management, including principal financial officers as appropriate to allow timely decisions regarding required disclosure.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the ~~International Accounting Standards Board~~IASB (IFRS-IASB).

Our internal control over financial reporting includes those policies and procedures that:

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets,

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS-IASB and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors, and

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting, no matter how well designed, may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, ~~2014~~2015 based on the criteria established in Internal Control—Integrated Framework ~~(1992)~~(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, (COSO). Based on this assessment, our management concluded that our internal control over financial reporting was effective as of December 31, ~~2014.~~2015.

Our independent registered public accounting firm, Deloitte, has audited the consolidated financial statements included in this ~~Annual Report,~~annual report, and as part of their audit, has issued their report, included herein, on the effectiveness of our internal control over financial reporting as of December 31, ~~2014.~~2015.

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this Annual Report that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

Our internal control over financial reporting as of December 31, 2015 has been audited by an independent registered public accounting firm, as stated in its report, which follows below.

We have audited the internal control over financial reporting of CorpBanca and subsidiaries (the “Bank”) as of December 31, ~~2014,~~2015, based on criteria established inInternal Control-Integrated Framework ~~(1992)~~(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Bank’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanyingManagement’s Annual Report on Internal Control Over Financial ~~Reporting~~.Reporting. Our responsibility is to express an opinion on the Bank’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the Bank’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Bank’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Bank’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Bank maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2014,~~2015, based on the criteria established inInternal Control - Integrated Framework ~~(1992)~~ (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the consolidated financial statements as of and for the year ended December 31, ~~2014~~2015 of the Bank and our report dated ~~April 29, 2015~~March 31, 2016 expressed an unqualified opinion on those consolidated financial statements and included an explanatory paragraph concerning the translation of Chilean peso amounts into U.S. dollar amounts in conformity with the basis stated in Note 1ff) and that such U.S. dollar amounts are presented solely for the convenience of readers in the United States of America.

We believe that each of the members of our ~~Audit Committee~~audit committee qualifies as an “audit committee financial expert” within the meaning of this Item 16A, in that (i) each has an understanding of IFRS and financial statements, (ii) the ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves, (iii) significant experience auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the financial statements and experience supervising persons engaged in such activities, (iv) an understanding of internal control over financial accounting and reporting, and (v) an understanding of the functions of an audit committee.

The names of the members of our audit committee are included in Item 6. Directors, Senior Management and Employees—C. Board Practices. All but Mr. Echeverria, meet the independence requirements set foth in the Exchange Act Rule 10A-3(b)(1).

We have adopted a code of ethics, as defined in Item 16B of Form 20-F under the Exchange Act. Our code of ethics applies to our CEO, CFO, principal accounting officer and persons performing similar functions, as well as to our directors and other employees without exception. A copy of our code of ethics, as amended, along with our Code of Conduct in the Securities Market, is attached as an exhibit to this ~~Annual Report.~~annual report.

Our code of ethics is available on our website, at www.corpbanca.cl under the heading “Gobiernos Corporativos”.

No waivers have been granted to the code of ethics since its adoption that applies to the persons indicated above.

The following table sets forth the fees billed to us by our independent auditors during the fiscal years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014:~~2015:

Audit fees in the above table are the aggregate fees billed by Deloitte in connection with the audit of our financial statements and services that are normally provided by Deloitte in connection with statutory and regulatory filings or engagements.

Audit-related fees in the above table are the aggregate fees billed by Deloitte for the audit and review of our filings under the Securities Act.

Tax fees in the above table are the aggregate fees billed by Deloitte for tax compliance, tax advice, and tax planning.

Other services are fees billed to us by Deloitte in connection with consulting work and advice on accounting matters (which are unrelated to the auditing of the accounts).

Our ~~Audit Committee~~audit committee approves all audit, audit-related services, tax services and other services provided by Deloitte. Any services provided by Deloitte that are not specifically included within the scope of the audit must be pre-approved by the ~~Audit Committee~~audit committee prior to any engagement.

CorpBanca’s audit committee does not meet the requirements of Exchange Act Rule 10A-3 because Juan Echeverría González does not meet the Exchange Act Rule 10A-3(b)(1) independence requirements. CorpBanca is relying on the general exemption contained in Exchange Act Rule 10A-3(c)(3), which provides an exemption from NYSE’s listing standards relating to audit committees for foreign companies like CorpBanca. CorpBanca’s reliance on Rule 10A-3(c)(3) does not, in the opinion of management, materially adversely affect the ability of its audit committee to act independently and to satisfy the other requirements of Exchange Act Rule 10A-3.

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

The following table sets out certain information concerning purchases of our shares registered under Section 12 of the Exchange Act by us or any affiliated purchaser during fiscal year ~~2014:~~2015:

During the two years prior to December 31, 2015, (1) Deloitte has not issued any reports on the financial statements of the bank or on the effectiveness of internal control over financial reporting that contained an adverse opinion or a disclaimer of opinion, nor were the auditors’ reports of Deloitte qualified or modified as to uncertainty, audit scope, or accounting principles, (2) there has not been any disagreement over any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to Deloitte’s satisfaction would have caused it to make reference to the subject matter of the disagreement in connection with its auditors’ reports, or any “reportable event” as described in Item 16F(a)(1)(v) of Form 20-F.

Further in the two years prior to December 31, 2015, the bank has not consulted with PwC regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered with respect to the consolidated financial statements of the bank, and neither a report was provided to the bank or oral advice was provided that PwC concluded was an important factor considered by the bank in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement as that term is used in Item 16F(a)(1)(iv) of Form 20-F or a “reportable event” as described in Item 16F(a)(1)(v) of Form 20-F.

Pursuant to Section 303A.11 of the Listed Company Manual of the New York Stock Exchange, “foreign private issuers” are required to provide a summary of the significant ways in which their corporate governance practices differ from those corporate governance standards required of U.S. companies by the New York Stock Exchange. As a Chilean bank, our corporate governance standards are governed by our by-laws, the Chilean General Banking ~~Law,~~Act, the Chilean Securities Market Act, the Chilean Corporations ~~Law, the~~~~Ley de Mercado de Valores No. 18,045,~~ ~~or the Securities Market Law,~~Act and the ~~regulations issued by~~Regulations of the SBIF. The following chart notes these differences:


NYSE Corporate Governance Standards		Chilean Corporate Governance Standards
Listed companies must have a nominating/corporate governance committee composed entirely of independent directors. The committee must have a written charter addressing the committee’s purpose and responsibilities, which must include (i) identifying, and selecting or recommending, qualified individuals to serve as board members, (ii) developing and recommending corporate governance guidelines; and (iii) overseeing the evaluation of the board and management.		Under Chilean law, we are not required to have, and do not have, a nominating/corporate governance committee. Under Chilean law, the only committees that are required are the audit committee, the directors committee, the anti-money laundering committee and the anti-terrorism finance committee.

Listed companies must have a compensation committee composed entirely of independent directors. The committee must have a written charter addressing an annual performance evaluation of the committee and addressing the committee’s purpose and responsibilities, which must include (i) determining and approving the CEO’s compensation level based on an evaluation of the CEO’s performance in light of relevant corporate goals and objectives, (ii) making recommendations with respect to non-CEO executive officer compensation and (iii) producing a committee report on executive officer compensation.		Under Chilean law we are not required to have a compensation committee. Our ~~Board~~board of ~~Directors~~directors establishes the compensation of our CEO and does a performance evaluation. The Directors Committee examines the compensation program of executive officers.


Shareholders must have the opportunity to vote on all equity-compensation plans and material revisions thereto, subject to limited exemptions.		Our compensation policies do not provide for equity compensation plans.

Listed companies must adopt and disclose corporate governance guidelines. The guidelines must address (i) director qualification standards, (ii) director responsibilities, (iii) director access to management, (iv) director compensation, (v) director orientation and continuing education, (vi) management succession, and (vii) annual performance evaluation of the board.		We follow corporate governance guidelines established by Chilean laws and by the Regulations of the SBIF which include, among others (i) active participation of directors in our main committees, (ii) the requirement that all employees sign and be knowledgeable of our code of ethics, (iii) a separation of functions — our commercial segment is separated from the back office and risk segments and main credit decisions are taken in committee, (iv) monthly review by the audit committee of internal audit reports and (v) the appointment of an officer who oversees compliance with the code of ethics.

Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose waivers thereof for directors or executive officers.		We have a code of business and ethics conduct which drives business and ethic conduct of our CEO, CFO and each employee. This code must be signed by each of our employees and is published in our intranet; it is included as an exhibit in this Annual Report.

Listed companies must have an audit committee that meets the requirements of Exchange Act Rule 10A-3 or be exempt therefrom. If the company has an audit committee, each member must meet Exchange Act Rule 10A-3(b)(1) independence requirements or be exempt therefrom. In particular, Exchange Act Rule 10A-3(b)(1) requires that each member of the audit committee be a member of the board of directors of the issuer, and must otherwise be independent.		Under Chilean law, all Chilean banks must establish an audit committee composed of two or more members, two of whom must be directors appointed by the board of directors. The SBIF recommends that at least one of the members of the audit committee, who must also be a member of the board of directors, be experienced with respect to the accounting procedures and financial aspects of banking operations. The members of the audit committee appointed by the board of directors must be independent according to the criteria set by the board of directors. In furtherance of the independence of the audit committee, the Board of ~~Directors~~directors has determined that audit committee members should not, for the last three years, have held positions as our principal executive officers, have performed professional services for us, have commercial commitments with us or with any of our affiliates or related persons or have relations with other entities related to us from which they have received material payments. Moreover, they may not accept any payment or other compensatory fee from us, other than in their capacity as members of the audit committee or of other committees. All the members of the audit committee receive a monthly remuneration.

(d) Consolidated Statement of Comprehensive Income for the three years ended December 31, 2015

(e) Statement of Changes in Shareholders’ Equity for the three years ended December 31, 2015

(f) Consolidated Statement of Cash Flows for each of the three years ended December 31, 2015



Exhibit 4.(a).2(iii)++		Service Contract, dated as of March 27, 2012, between Corp Group Holding Inversiones Ltda. and CorpBanca, as amended (English language translation).

Exhibit 4.(a).2(iii)(a)		Amendment, dated as of January 27, 2014 of the Service Contract, dated as of March 27, 2012, between Corp Group Holding Inversiones Ltda. and CorpBanca, as amended (English language translation).

Exhibit 4.(a).3*		Software Consulting and Development Agreement, “IBS” Integrated Banking System, dated as of October 4,



		2001, between Datapro, Inc. and CorpBanca (English language translation).

Exhibit 4.(a).4*		Agreement to Participate in the Automated Teller Machine Network Operated by Redbanc S.A., dated as of April 1, 2001, among Redbanc S.A. and CorpBanca (English language translation).

Exhibit 4.(a).5****		Sublease Automatic Teller Machine Contract, dated as of November 26, 2008, among SMU S.A., Rendic Hermanos S.A., Supermercados Bryc S.A. and Distribuidora Super Diez S.A. and CorpBanca (English language translation).

Exhibit 4.(a).6		Second Amended and Restated Credit Agreement, dated as of ~~July 22, 2014,~~September 23, 2015, by and among CorpBanca, as borrower, Standard Chartered Bank, as administrative agent and HSBC Securities (USA) Inc. Standard Chartered Bank and Wells Fargo Securities, LLC, as ~~global coordinators and Bank of America, N.A., BNP Paribas Securities Corp., Citibank, N.A., Mizuho Bank, Ltd., National Bank of Canada and the Bank of Tokyo-Mitsubishi UFJ, Ltd. as~~ joint bookrunners and ~~joint~~mandated lead arrangers.

Exhibit 4.(a).7		Lease agreement, dated as of July 27, 2015 between Corpbanca as tenant and Compañéa de Seguros Corpseguros S.A. as Landlord.

Exhibit 4.(a).8		Lease agreement, dated as of July 27, 2015 between Corpbanca as tenant and Compañéa de Seguros CorpVida S.A. as Landlord.

Exhibit 8.1		List of subsidiaries of CorpBanca.

Exhibit 10.C.1++		Transaction Agreement dated as of January 29, 2014, by and among CorpBanca, Inversiones Corp Group Interhold Limitada, Inversiones Gasa Limitada, Itaú Unibanco and Itaú Chile.

Exhibit 11.1****10.C.1.a		~~English language translation~~Amendment to the Transaction Agreement, dates as of ~~CorpBanca’s Code of Ethics, as amended.~~June 2, 2015, by and among CorpBanca, Inversiones Corp Group Interhold Limitada, Inversiones Gasa Limitada, Itaú Unibanco and Itaú Chile.

Exhibit 11.2***11.1		CorpBanca’s Code of Ethics. (General code of conduct. English language ~~translation of~~ translation).

Exhibit 11.2		CorpBanca’s Code of Conduct in the Securities ~~Market~~Market. (English language translation).

Exhibit 12.1		Certification of the CEO of CorpBanca required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

Exhibit 12.2		Certification of the CFO of CorpBanca required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

Exhibit 13.1		Certification of the CEO of CorpBanca required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 13.2		Certification of the CFO of CorpBanca required under Rule 13a-14(a) or Rule 15d-14(a), pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 15.1		Consent of Independent Registered Public Accounting Firm (Deloitte).

Exhibit 15.2		Letter re: Change in Certifying Accountant

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.


		~~Deloitte~~
		~~Auditores y Consultores Limitada~~
		~~Rosario Norte 407~~
		~~Las Condes, Santiago~~
		~~Chile~~
		~~Fono: (56) 227 297 000~~
		~~Fax: (56) 223 749 177~~
		~~deloittechile@deloitte.com~~
		~~www.deloitte.cl~~

We have audited the accompanying consolidated statements of financial position of CorpBanca and subsidiaries (the “Bank”) as of December 31, ~~2014~~2015 and ~~2013,~~2014, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, ~~2014.~~2015. These consolidated financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of CorpBanca and subsidiaries as of December 31, ~~2014~~2015 and ~~2013,~~2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, ~~2014,~~2015, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS-IASB”).

Our audits also comprehended the translation of Chilean peso amounts into U.S. dollar amounts and in our opinion, such translation has been made in conformity with the basis stated in note ~~1ff)~~1 ff) to the consolidated financial statements. Such U.S. dollars amounts are presented solely for the convenience of readers outside Chile.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the Bank’s internal control over financial reporting as of December 31, ~~2014,~~2015, based on the criteria established inInternal Control—IntegratedFramework ~~(1992)~~(2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated ~~April 29, 2015~~March 31, 2016 expressed an unqualified opinion on the Bank’s internal control over financial reporting.


CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment, others			(34,366	)	(27,193	)	(37,262	)	(52,458	)
Acquisition in Colombia net of cash	12 b	)	(255,444	)	(83,998	)	—		—
Proceeds from sales of property, plant and equipment			7,520		1,343		596		839
Sale of assets received in lieu of payment or in foreclosure			4,586		3,038		3,337		4,698
Increased participation in companies							(516	)	(726	)

Net cash (used in) investment activities			(277,704	)	(106,810	)	(33,845	)	(46,921	)


CASH FLOW FROM FINANCING ACTIVITIES:

Debt issued			688,160		672,851		193,158		271,931
Redemption of debt issued			(269,770	)	(68,468	)	(250,981	)	(353,335	)
Capital increase	23		291,168		—		—		—
Dividends Paid	23 c	)	(60,040	)	(88,403	)	(352,990	)	(496,945	)

Net cash provided by financing activities			649,518		515,980		(410,813	)	(578,349	)


Net effect of exchange rate changes on cash and cash equivalents			(5,307	)	32,301		(7,187	)	(10,118	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			594,456		103,110		(212,274	)	(298,113	)


Cash and cash equivalents at beginning of the period			733,020		1,327,476		1,430,586		2,014,002
Cash and cash equivalents at end of the period	5 a	)	1,327,476		1,430,586		1,218,312		1,715,889

Net variation of cash and cash equivalents			594,456		103,110		(212,274	)	(298,113	)


Additional Information

Income tax paid			(32,089	)	(64,280	)	(77,674	)	(109,351	)

tax refunds received during the period			327		365		1,852		2,607

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

CorpBanca is a banking corporation organized pursuant to the laws of the Republic of Chile that provides a broad range of general banking services to its clients, who are from natural persons to large corporations. CorpBanca and its subsidiaries (hereinafter jointly referred to as the “Bank” or “CorpBanca”) offer commercial and consumer banking services, including factoring, collections, leasing, securities and insurance brokerage, mutual funds and management of investment funds and bank investments.

Its legal domicile is Huérfanos 1072, Santiago, Chile and its web site iswww.corpbanca.cl.

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS – IASB).

The consolidated financial statements for the period ended December 31, ~~2014~~2015 have been approved for issue by the Board of Directors on ~~April 29, 2014.~~March 28, 2016.

For purposes of these financial statements we use certain terms and conventions. References to “US$”, “US dollars” and “dollars” are to United States dollars, references to “Chilean pesos”, “pesos” or “Ch$” are to Chilean pesos, references to “Colombia pesos”, or “Cop$” are to Colombian pesos and references to “UF” are to Unidades de Fomento. The UF is an inflation-indexed Chilean monetary unit with a value in Chilean pesos that changes daily to reflect changes in the official Consumer Price Index (“CPI”) of the Instituto Nacional de Estadísticas (the Chilean National Institute of Statistics) from the previous month.

The UF is revalued in monthly cycles. Each day in the period beginning on the tenth day of the current month through the ninth day of the succeeding month, the nominal peso value of the UF is indexed up (or down in the event of deflation) in order to reflect a proportionate amount of the change in the Chilean Consumer Price Index (“CPI”) during the prior calendar month. As of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, one UF equaled Ch$~~22,840.75,~~23,309.56, Ch$~~23,309.56,~~24,627.10, and Ch$~~24,627.10~~25,629.09 respectively. The effect of any changes in the nominal peso value of our UF-denominated interest earning assets and interest bearing liabilities is reflected in our results of operations as an increase (or decrease, in the event of deflation) in interest income and expense, respectively.

For consolidation purposes, the statements of financial position of our New York Branch have been converted to Chilean pesos at the exchange rate of Ch$710.32 per US$1 as of December 31, 2015 (Ch$605.46 per US$1 as of December 31, ~~2014 (Ch$526.41 per US$1 as of December 31, 2013). Our~~2014), our Colombian subsidiaries have used the exchange rate of Ch$~~0.2532~~0.2266 per COP$1 (Ch$~~0.2736~~0.2532 per COP$1 as of December 31, ~~2013)~~2014), both in accordance with International Accounting Standard 21, regarding the translation of a foreign operation whose functional currency is not the currency of a hyperinflationary economy.

The main accounting policies adopted in preparing these financial statements are described below.

The consolidated financial statements incorporate the financial statements of CorpBanca and its subsidiaries, the New York Branch and Colombian subsidiaries that participate in the consolidation as of December 31, ~~2013~~2014 and ~~2014,~~2015, and for the three years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, include the necessary adjustments and reclassifications to the financial statements of the subsidiaries, our New York Branch and Colombian subsidiaries as of December 31, ~~2013~~2014 and ~~2014,~~2015, to bring their accounting policies and valuation criteria ~~into line~~in conformity with ~~those applied~~International Financial Reporting Standards as issued by the ~~Bank, in accordance with IFRS—IASB.~~International Accounting Standards Board (“IFRS-IASB”).

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

All intragroup balances, transactions, income and expenses are eliminated in full on consolidation.

For consolidation purposes, the financial statements of the New York Branch, the financial statements of Colombian subsidiaries whose functional currency isare the U.S. dollar and Colombian pesos respectively has been translated into Chilean pesos as described in Note 1 e) below.

Regardless of the nature of its involvement in an entity (the investee), CorpBanca will determine whether it controls an investee based on whether it has exposure, or rights, to variable returns from ~~the~~ its involvement with the investee and has the ability to use its power over the investee to affect the amount of the its returns.

CorpBanca controls an investee when it has exposure, or rights, to variable returns from the its involvement with the investee and has the ability to use its power over the investee to affect the amount of the its returns.

Therefore, the Bank controls an investee if and only if it has all of the following elements:

When the Bank has less than the majority of voting rights in an investee, but these voting rights are sufficient to give it the practical ability to unilaterally direct the investee’s relevant activities, the Bank is determined to have control. The Bank considers all relevant factors and circumstances in evaluating whether voting rights are sufficient to obtain control, including:

The size of the Bank’s holding of voting rights relative to the size and dispersion of holdings of other vote holders;

Potential voting rights held by the investor, other vote holders or other parties;

Rights from other contractual agreements;

Any additional facts and circumstances that indicate that the investor has, or does not have, the current ability to direct the relevant activities when decisions need to be made, including voting behavior patterns in prior shareholder meetings.

The Bank reevaluates whether or not it has control in an investee if the facts and circumstances indicate that there have been changes in one or more of the elements of control listed above.

~~The financial statements of controlled companies are consolidated with those of the Bank using the global integration method (line by line). Using this method, all~~All balances and transactions among consolidated companies have been eliminated upon consolidation. The consolidated financial statements include all assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries presented as if they were one sole economic entity. A controlling shareholder prepares consolidated financial statements using uniform accounting policies for similar transactions and other events under equivalent circumstances.

Non-controlling interest are also presented in the Consolidated Statement of Financial Position, within equity, separately from that of the equity holders of the Bank. Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are equity transactions (i.e. transactions with the owners in their role as such).

An entity shall attribute profit for the period and each component of other comprehensive income to equity holders of the Bank and the non-controlling interests.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The entity shall also attribute total comprehensive income to the equity holder of the Bank and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

The following table details the entities over which CorpBanca has the ability to exercise control and, therefore, the entities that it consolidates:¹²³⁴⁵⁶⁷

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Associates are entities over which the Bank has the ability to exercise significant influence, but not ~~control or joint~~ control. Usually, this ability manifests itself through an ownership interest equal to or greater than 20% of the entity’s voting rights and is valued using the equity method.

Other factors considered in determining whether there is significant influence over an entity include representation on the board of directors and the existence of material transactions.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Investments in other companies are those where the Bank neither has control nor exercises significant influence. Investments in these companies are measured at cost (See Note 12Investments in other companies).

Certain subsidiaries of CorpBanca manage and administer assets held in mutual funds and other investment vehicles on behalf of investors. The financial statements of funds are not included in these consolidated financial statements except when the Bank controls the fund. AtThe Bank did not consolidate any funds as of December 31, ~~2013 and~~ 2014 ~~nor for the years ended~~or December 31, ~~2012, 2013 and 2014, did the Bank control or consolidate any funds.~~2015.

CorpBanca and its subsidiaries manage assets held in common investment funds and other investment products on behalf of investors. The financial statements of these managed assets, trust businesses and other related businesses are not included in these consolidated financial statements except when the Bank controls the entity. The assets managed by CorpBanca Administradora General de Fondos S.A., CorpBanca Investment Trust Colombia S.A. and Helm Fiduciaria that are owned by third parties are not included in the consolidated financial statements.

Non-controlling interest represents the equity and net income in a subsidiary not attributable, directly or indirectly, to the equity holders of the Bank. Non-controlling interest is disclosed as a separate line item within equity in the consolidated statements of financial position and as a separate disclosure within the consolidated statements of income and comprehensive income.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Bank, liabilities incurred by the Bank to the former owners of the acquiree and the equity interests issued by the Bank in exchange for control of the Acquiree. Acquisition costs incurred are expensed and included in administrative expenses.

When CorpBanca and subsidiaries acquire a business, it recognizes the identifiable assets acquired and liabilities assumed in accordance with IFRS. This includes the separation of embedded derivatives from host contracts.

If the business combination is done in stages, the acquirer’s stake previously held in the acquired assets or equity interest, measured at fair value at the date of the respective acquisition, is remeasured at fair value at the acquisition date control is achieved and any resulting gain/loss is recognized.

Any contingent consideration that must be transferred by the acquirer is recognized at its fair value at the acquisition date. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments arise from additional

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

information obtained during the “measurement period” (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

Goodwill is measured as the excess over the sum of the consideration transferred, the amount of anynon-controlling interests in the acquiree, and the fair value of the ~~acquirer’s~~acquirer´s previously held equity interest in the acquiree (if any) over the fair value of the acquisition-date amounts of the identifiable net assets acquired. If, after reassessment of its initial calculation, theacquisition-date amounts of the net identifiable assets acquired exceeds the sum of the consideration transferred, the amount of anynon-controlling interests in the acquiree and the fair value of the ~~acquirer’s~~acquirer´s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Goodwill amounts are established at the date of acquisition of the business and are subsequently measured at such amounts less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the ~~Group’s~~Group´s cash-generating units (or groups ofcash-generating ~~units)~~ units if applicable) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently if there is an indication that the cash-generating unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the cash-generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

CorpBanca provides financial information by operating segments in accordance with IFRS 8—8 -Operating segments (IFRS 8) to disclose information to enable users of its financial statements to evaluate the nature and financial effects of its business activities in which it engages and the economic environments in which it operates so as to:

Better understand the Bank’s performance;

Better evaluate its future cash projections; and

Better judge the Bank as a whole.

The Bank discloses separate information for each operating segment that has been identified and that exceeds the quantitative thresholds established for a segment that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The “CODM” is the Chief Executive Officer.

Operating segments with similar economic characteristics often have a similar long-term financial performance. Two or more segments may be aggregated into a single reporting segment only if aggregation is consistent with the core principles of IFRS 8 and the segments have similar economic characteristics and are similar in each of the following respects:

The Bank reports separately information on each operating segment that meets any of the following quantitative thresholds:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The Banks has determined that its operating segments are its reportable segments. No operating segments have been aggregated to arrive at reportable segments.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The seven segments are Large, Corporate and Real Estate Companies; Companies; Traditional and Private Banking; Lower Income Retail Banking; Treasury and International; Financial Services Offered through Subsidiaries and Colombia. The CODM manages these operating segments using an internal profitability reporting system and reviews ~~their~~its segments on the basis of gross operational margin and only uses average balances to evaluate performance and allocate its resources.

Regarding foreign markets, Colombia has been identified as a separate segment based on the business activities described. Its operating results are reviewed regularly by the entity’s highest decision-making authority for operating decisions, to decide about resource allocation for the segment and evaluate its performance, and separate financial information is available for it.

Primarily includes treasury activities such as financial management, funding, liquidity and international businesses.

Services rendered by our subsidiaries, which include insurance brokerage, financial advisory service, asset management and securities brokerage.

All banking services rendered

The Bank has determined the Chilean Peso as its functional currency and the presentation currency for its consolidated financial statements. The functional currency is the currency of the primary economic environment in which the Bank operates.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Consequently, all balances and transactions denominated in currencies other than Chilean Pesos are considered as denominated in “foreign currencies”.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the foreign consolidated entities whose functional currencies are other than the Chilean Peso are translated into the presentation currency as follows:

Assets and liabilities are translated at the closing exchange rate as of December 31, ~~2012,~~ 2013, ~~and 2014.~~

~~As of December 31, 2013 and~~ 2014 and ~~for the years ended December 31, 2012, 2013 and 2014~~

Income, expenses and cash flows are translated at the exchange rate at the date of the transactions.

The resulting exchange differences of translating into Chilean pesos the functional currency balances of the consolidated entities whose functional currency is other than the Chilean Peso, are recorded and accumulated as “Exchange differences on translation” within the line item “Accumulated other comprehensive income” in equity. On the disposal of those foreign subsidiaries, all of the exchange differences accumulated in equity with respect to those amounts attributable to the equity holders of the Bank are reclassified to income.

In preparing the consolidated financial statements, transactions in currencies other than the Bank’s functional currency are recognized at the rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the closing exchange rates. Exchange differences on monetary items are recognized in net income in the period in which they arise. The amount of net foreign exchange gains and losses within the statements of income includes the recognition of the effects of fluctuations in the exchange rates on monetary assets and liabilities denominated in foreign currencies.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for:

Exchange differences on foreign currency borrowings relating to assets under construction for future productive use which are included in the cost of those ~~assets;~~assets, if any;

Exchange differences on transactions entered into in order to hedge certain foreign currency risks; and

Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur, ~~(therefore forming part of the net investment in the foreign operation),~~ which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

Assets and liabilities in foreign currency are shown at their equivalent in Chilean pesos, calculated using the exchange rates as of December 31, ~~2014~~2015 of Ch$~~605.46~~710.32 per US$1 for the U.S. dollar and Ch$~~0.2532~~0.2266 per COP$1 for the Colombian peso (Ch$~~526.41~~605.46 per US$1 and Ch$~~0.2736~~0. 2532 per COP$1 as of December 31, ~~2013)~~2014).

The foreign exchange gains (losses) presented within consolidated statements of income (see Note 27Net foreign exchange income (losses))as of December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 of MCh$~~30,696,~~(13,906), MCh$~~(13,906)~~(13,426) and ~~Mch$(13,426)~~MCh$(149,370), respectively, include the foreign currency exchanges gain/losses for exchange rate fluctuations over monetary foreign currency-denominated assets and liabilities, and the gains (losses) obtained from the Bank’s operations denominated in foreign currency.

f.1 The criteria for measuring the assets and liabilities presented in the statements of financial position are the following:

Measurement or valuation of assets and liabilities is the process of determining the amounts at which the elements of the financial statements are to be recognized and carried in the Statement of Financial Position and the Statement of Comprehensive Income. This involves selecting the particular basis or method of measurement.

Financial assets and liabilities are recorded initially at fair value which, unless there is evidence otherwise, is the transaction price. Instruments not valued at fair value through profit and loss are adjusted to subtract transaction costs.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Financial liabilities are valued generally at amortized cost, except for financial liabilities designated as hedged items (or hedging instruments) and financial liabilities held for trading, which are valued at fair value.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The following measurement criteria are used for assets and liabilities recorded in the Statement of Financial Position:

Financial assets and liabilities measured at amortized cost:

The amortized cost of a financial asset or liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative ~~accretion under~~amortization using the effective interest ~~rate~~ method of any difference between that initial amount and the maturity ~~amount.~~amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

InFor the ~~case~~amortized cost of a financial asset or liability, the effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or group of financial assets ~~amortized cost also includes adjustments for any impairment that may have occurred. In~~or financial liabilities) and of allocating the ~~case of financial liabilities, such asset is amortized using the effective~~ interest ~~rate method. The effective~~income or interest ~~rate method is which is the rate that exactly discounts estimated future cash receipts~~expense over the ~~expected life of the financial asset to that asset’s net carrying amount on initial recognition.~~relevant period.

Fair value measurements of assets and liabilities:

Fair value is defined as the price that will be received for the sale of an asset or paid for the transfer of a liability in a orderly transaction on the main (or most advantageous) market as of the measurement date under current market conditions (i.e. exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions or market information might not be available. However, the objective of a fair value measurement in both cases is the same — to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions at which the market participant who holds the asset or liability could exit that asset or liability.

When a price for an asset or liability is not directly observable, the Bank will measure the fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. As fair value is a market-based measurement, it should be determined using the assumptions that market participants would use in pricing the asset or liability, including risk assumptions. As a result, the Bank’s intention to hold an asset or to settle or otherwise fulfill a liability is not relevant when measuring fair value.

A fair value measurement is for a particular asset or liability. Thus, when measuring fair value, the Bank takes into account the same characteristics of the asset or liability that market participants would consider in pricing that asset or liability on the measurement date.

To increase the consistency and comparability of fair value measurements and related disclosures, the Bank uses and discloses a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets and liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs). Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the similar asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.

Cost is defined as the cost of the transaction to acquire the asset, less any impairment losses that may exist.

Financial assets are initially classified into the various categories used for management and measurement purposes.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Financial assets are included for measurement purposes in one of the following categories:

Financial assets at fair value through profit and loss: this category includes the financial assets held for trading which are acquired principally for the purpose of generating a profit in the short term from fluctuations in their prices. This category includes the trading portfolio financial assets and derivative financial instruments not designated and effective as hedging instruments.

Available-for-sale financial assets: this category includes debt and equity securities not classified as “held-to-maturity investments”, “loans and accounts receivable from banks and customers” or “financial assets at fair value through profit or loss”.

Held-to-maturity investments:this category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity.

Loans and accounts receivable from banks and customers: this item includes financing granted to third parties, based on their nature, regardless of the type of borrower and the form of financing. Includes loans and accounts receivable from customers, interbank loans, and finance lease transactions in which the consolidated entities act as lessors.

Investments under agreements to resell:includes balances of financial instruments purchased under resale agreements.

Financial assets are classified by their nature into the following line items in the consolidated financial statements:

Cash and deposits in banks: This item includes cash balances, checking accounts and on-demand deposits with the Central Bank of Chile and other domestic and foreign financial institutions.

Cash in the process of collection: Domestic transactions in the process of transfer through a domestic clearinghouse or international transactions which may be delayed in settlement due to time differences, etc.

Trading portfolio financial assets: This item includes financial instruments due for trading purposes and investments in mutual funds which must be adjusted to their fair value in the same way as instruments acquired for trading.

Loans and receivables from banks: This item includes the balances of transactions with domestic and foreign banks, including the Central Bank of Chile, other than those reflected in the preceding items.

Loans and receivables from customers: This item includes loans that are non-derivative financial assets for which fixed or determined amounts are charged, that are not listed on an active market and which the Bank does not intend to sell immediately or in the short term. When the Bank is the lessor in a lease, and it substantially transfers the risks and benefits incidental to the leased asset, the transaction is presented in loans.

Financial investments available-for-sale: This item includes debt and equity securities not classified in any of the other categories.

~~Held-to-maturity~~Held-to-maturity investments: this category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity.

Investments under agreements to resell:includes balances of financial instruments purchased under resale agreements.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Financial liabilities are initially classified into the various categories used for management and measurement purposes.

Financial liabilities are classified for measurement purposes into one of the following categories:

Financial liabilities at fair value through profit or loss: Financial liabilities issued to generate a short-term profit from fluctuations in their prices ~~financial derivatives not deemed to qualify for hedge accounting~~ and financial liabilities arising from definitive sales of financial assets purchased under resale agreements or borrowed (“short positions”).

Financial liabilities at amortized cost: financial liabilities, regardless of their type and maturity, not included in any of the aforementioned categories which arise from the borrowing activities of financial institutions, regardless of their form and maturity.

Financial liabilities are classified by their nature into the following line items in the consolidated financial statements:

Current accounts and demand deposits:This item includes all on-demand obligations except for term savings accounts, which are not considered on-demand instruments in view of their special characteristics. Obligations whose payment may be required during the period are deemed to be on-demand obligations; i.e., operations which become callable the day after the closing date are not treated as on-demand obligations.

~~Cash~~Transaction in the ~~process~~course of ~~collection:~~payment:Transactions in the process of transfer through a domestic clearing house or international transactions which may be delayed as to transfer due to time differences, etc.

Obligations under repurchase agreements:This item includes the balances of sales of financial instruments under securities repurchase and loan agreements.

Time deposits and saving accounts:This item shows the balances of deposit transactions in which a term at the end of which they become callable has been stipulated. This item also includes saving accounts.

Borrowings from financial institutions:This item includes obligations due to other domestic banks, foreign banks, or the Central Bank of Chile, which were not classified in any of the previous categories.

Debt issued:This encompasses three items. They are obligations under letters of credit, subordinated bonds, and senior bonds.

Other financial obligations:This item includes credit obligations to persons distinct from other domestic banks, foreign banks, or the Central Bank of Chile, for financing purposes or operations in the regular course of business.

Financial assets at fair value through profit and loss are initially measured at fair value. Transaction costs are recognized immediately in profit or loss. Subsequent to initial recognition financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in net income.

For “Trading portfolio financial assets” fair value is based on market prices or valuation models prevailing on the closing date of the financial statements. Gains or losses from changes in fair value, as well as gains or losses from their trading are included

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

in line item “Trading and investment income” within the statement of income. Accrued interest income and indexation adjustments are also included as “Trading and investment income”.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

All purchases and sales of trading instruments to be delivered within the deadline period established by market regulations and conventions are recognized on the trade date, which is the date on which the commitment is made to purchase or sell the asset.

~~For“~~For“Derivative financial instruments” including foreign exchange forwards, interest rate futures, currency and interest rate swaps, interest rate options, and other derivative instruments, fair value is obtained from market quotes, discounted cash flow models and option valuation models, as appropriate. Derivatives contracts are presented on the statement of financial position as an asset when their fair value is positive and as a liability when the fair value is negative in the line item “Derivative financial instruments”.

Certain derivatives embedded in other financial instruments are treated as separate derivatives when their risk is not ~~clearly and~~ closely related to the economic characteristics and risks of the host contract and the host contract is not measured at fair value with changes in fair value recognized in net income.

On initial recognition, derivative contracts are designated by the Bank as a trading derivative or as a hedging instrument for hedge accounting purposes.

The changes in the fair value of trading derivatives are recorded in line item “Trading and investment income” within the consolidated statements of income.

If the derivative is designated as a hedging instrument in a hedge relationship, this may be: (1) a fair value hedge of assets or liabilities or unrecognized firm commitments; (2) a hedge of cash flows related to recognized assets or highly probable liabilities or forecast transactions; or (3) hedge of a net investment in a foreign operation.

A hedging relationship qualifies for hedge accounting if, and only if, all of the following conditions are met: (a) at the inception of the hedge there is formal designation and documentation of the hedging relationship; (b) the hedge is expected to be highly effective; (c) the effectiveness of the hedge can be reliably measured and; (d) the hedge is assessed on an ongoing basis and determined to have been highly effective throughout the financial reporting periods for which the hedge was designated.

Transactions with derivatives that do not qualify for hedge accounting are recognized and presented as trading derivatives, even if they provide an effective economic hedge for managing risk positions.

When a derivative instrument hedges the risk exposure to changes in the fair value of a recognized asset or liability, the hedged asset or liability is recorded at its fair value. Gains or losses from measuring the fair value of the item hedged and the hedging derivative instrument are recognized in the income statement.

If the hedged item in a fair value hedge is a firm commitment, the changes in the fair value of the firm commitment with respect to the hedged risk are recognized as assets or liabilities with the corresponding gain or loss recognized in the income statement. The gains or losses from measuring the fair value of the hedging derivative instrument are also recorded in the income statement. When an asset or liability is acquired or assumed as a result of the fulfilling of the firm commitment, the initial carrying amount of the acquired asset or assumed liability is adjusted to include the cumulative change in the fair value of the firm commitment attributable to the hedged risk that was recognized in the statement of financial position.

When a derivative instrument hedges exposure to variability in cash flows of recognized assets or liabilities, or highly probable forecasted transactions, the effective portion of the changes in fair value with regard to the risk hedged is recognized in other comprehensive income. Any ineffective portion is immediately recognized in the income statement. The accumulated gains or losses recognized in other comprehensive income are reclassified to the income statement in the same period or periods in which the hedged item affect the income statement.

When a derivative instrument hedges exposure to variability in the amount of the Bank’s interest in the net assets of a foreign operation, the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income and the ineffective portion is recognized in net income. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income is reclassified

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

from equity to the income statement when the net investment affects profit or loss, for example, as a reclassification adjustment on the disposal of the foreign operation.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The types of derivatives into which we enter are disclosed in Note 8Derivatives Financial Instruments and Hedge Accounting to these financial statements. They may include (please note description at Note 8) the following:

Inflation forwards and inflation swaps: These derivatives are used to hedge the economic value of inflation indexed structures such as having inflation indexed assets funded with nominal liabilities.

OIS – Swaps: These derivatives are used to hedge the economic value of long-term assets funded with short-term liabilities, fixing repricing of the short-term liabilities.

USD-CLP Fx Forwards: USD-CLP forwards are used to hedge U.S. dollar denominated assets which will be funded by Chilean peso denominated short-term liabilities.

Instruments available for sale are initially recognized at fair value, including transaction costs. Subsequent to initial recognition, available for sale investments are measured at fair value less any impairment losses. Gains or losses from changes in fair value are recognized in other comprehensive income within line item “Financial instruments available-for-sale”. When these investments are sold or impaired, the cumulative gains or losses previously accumulated in the financial investment available for sale reserve in equity are transferred to the income statement and reported under line item “Trading and investment income, Net”.

All purchases and sales of investment instruments to be delivered within the deadline period established by market regulations and conventions are recognized on the trade date, which is the date on which the commitment is made to purchase or sell the asset.

Investment instruments designated as hedging instruments are measured using the requirements established for hedge accounting.

Held-to-maturity investments are measured at amortized cost using the effective interest method. Amortized cost is understood to be the acquisition cost of a financial asset ~~or liability~~ plus or minus, as appropriate, the principal repayments and the cumulative amortization (taken to income statement) of the difference between the initial cost and the maturity amount. In the case of held-to-maturity investments, amortized cost furthermore includes any reductions for impairment losses.

Loans and accounts receivables are measured at amortized cost using the effective interest rate method, less any ~~impairment.~~impairment if if applicable.

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative accretion using the effective interest method of any difference between the initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectability.

The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments and receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.

As of ~~financial liabilities~~December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

In general, financial liabilities on the ~~Bank’s~~Bank´s Statement of Financial Position are measured at amortized cost, as defined above, except for those financial liabilities designated as hedged items (or hedging instruments) in hedging relationships which are measured at fair value.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Financial instruments at fair value, determined on the basis of quotations in active markets, include government debt securities, private sector debt securities, shares, short positions, and fixed-income securities issued.

In cases where quotations cannot be observed. Management makes its best estimate of the price that the market would set using its own internal models. In most cases, these models use data based on observable market parameters as significant inputs and, in very specific cases, they use significant inputs not observable in market data. Various techniques are employed to make these estimates, including the extrapolation of observable market data and extrapolation techniques.

The main valuation techniques used by the Bank’s internal models to determine the fair value of derivatives are as follows:

The fair value of the financial instruments arising from the aforementioned internal models considers contractual terms and observable market data, which include interest rates, credit risk, exchange rates, the quoted market price of raw materials and shares, volatility and prepayments, among other things. The valuation models are not significantly subjective, since these methodologies can be adjusted and evaluated, as appropriate, through the internal calculation of fair value and the subsequent comparison with the related actively traded price.

Financial asset and liability balances are offset only if there is a legally enforceable right to offset the recorded amounts and the Bank intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

The accounting treatment of financial asset transfers is conditioned by the degree and form in which risks and benefits associated the assets are transferred to third parties:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

In line with the foregoing, financial assets are only written-off the balance sheet when the rights over the cash flows that they generate are extinguished or when their implicit or ensuing risks and benefits have been substantially conveyed to third parties. Similarly financial liabilities are only written off of the balance sheet when the obligations that they generate are extinguished or when their associated risks and rewards have been transferred, with the intention of either cancelling them or reselling them.

Financial assets, other than those measured at fair value through net income, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired and impairment losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after initial recognition of the asset (a ‘loss event’), and that loss event (or events) has an impact on the estimated future cash flows of a financial asset or group of financial assets that can be reliably estimated. It may not be possible to identify a single, discrete event that caused the impairment.

For available-for-sale equity investments, a significant or prolonged decline in the fair value of the security below its costs is considered to be objective evidence of impairment. For available-for-sale debt instruments, objective evidence of impairment could include significant financial difficulty of the issuer or breach of contract (such as a default or delinquency in payments); the probability that the issuer will enter bankruptcy or financial re-organization; or the cessation of an active market for that financial asset because of financial difficulties.

Additionally, certain categories of financial assets, such as loans and receivables from banks and customers assets that are not deemed to be impaired individually are also assessed for impairment on a collective basis. For loans and receivables from banks and customers that are deemed to be impaired, the interest accrual is suspended, when there are reasonable doubts as to their full recovery and/or the collection of the related interest for the amounts and on the dates initially agreed upon, after taking into account the guarantees received to secure (fully or partially) collection of the related balances. Collections relating to impaired loans and advances are used to reduce the accrued interest and the remainder, if any, to reduce the principal amount outstanding. For further information on accounting policies for impairment of loans and receivables (see Note 1.j “Allowance for loan losses” below).

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

For financial assets carried at amortized cost, the amount of impairment loss recognized is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

For financial assets carried at cost, the amount of impairment loss recognized is the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

For ~~debt~~equity securities included in the ~~“Available~~Available for sale financial ~~asset”~~asset portfolio, ~~cumulative~~should a significant or prolonged decline in value occur, the impairment ~~losses are~~loss is equal to the difference between ~~their~~the acquisition cost ~~(net of any principal repayment and amortization)~~ and current fair value ~~less any impairment loss previously recognized~~and is recorded in the ~~consolidated statements of income.~~income statement.

The carrying amount of the financial asset is reduced by the impairment loss directly with the exception of loans and receivables from banks and customers, where the carrying amount is reduced through the use of an allowance account (‘allowance for loan losses’). When a loan and receivable is considered uncollectible, and it has been covered with an allowance for loan losses previous to its write-off, it is written off against the allowance account by charging and releasing provision through the income statement. Subsequent recoveries of amounts previously written off are credited against the income statement.

When an available-for-sale financial asset is considered to be impaired, cumulative unrealized gains and losses previously recognized in other comprehensive income are reclassified to the income statement in the period.

For financial assets measured at amortized cost, if, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through net income to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

In respect of available-for-sale equity securities, impairment losses previously recognized in net income are not reversed through income. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive income and accumulated under the heading “financial instruments available-for-sale.”

In respect of available-for-sale debt securities, impairment losses are subsequently reversed through net income if an increase in fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss.

Loans and receivables from customers and loans and receivables from banks, both originally granted by the Bank and acquired, are non-derivative financial assets with fixed or defined charges that are not quoted on an active market and that the Bank has no intention of selling immediately or in the short term; they are valued initially at cost plus incremental transaction costs and subsequently measured at amortized cost using the effective interest rate method.

When the Bank is the lessor in a lease agreement and transfers substantially all incidental risks and rewards over the leased asset, the transaction is presented within loans.

Factored receivables are valued at the purchase price of the loan. The price difference between the amounts paid and the actual face value of the receivables is earned and recorded as interest income over the financing period.

Lease receivables, included in “loans and receivables from customers”, are periodic payments from lease agreements that meet certain requirements to qualify as finance leases and are presented at the aggregate value of the minimum lease payments plus residual value net of unearned interest as of year end.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Assets leased among consolidated companies are treated as assets held for own use in the financial statements.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Allowance for loan losses are determined on an “individual” basis when they correspond to customers that are individually evaluated, and considering their size or level of exposure make it necessary to analyze them on a case-by-case basis and, are referred to as “collectively evaluated” when they correspond to a large number of loans whose amounts are not individually significant and relate to loans to individuals or small-size companies.

individually, for all individually significant loans and for those which, although not significant, cannot be classified as part of homogenous groups of loans of similar characteristics, i.e., by type of loan, customer’s industry and geographical location, type of guarantee, age of past-due amounts, etc.

collectively, for those with similar credit risk characteristics.

When the Bank determines that there is no objective evidence of impairment for an individually significant loan, it includes the loan in a group of loans of similar credit risk characteristcs and collectively evaluates such loans for impairment

becoming aware of a significant financial difficulty on the part of the customer;

when there is evidence of a deterioration of the customer’s ability to pay, either because it is in arrears or for other reasons, and/or

it becomes probable that the customer will enter bankruptcy or other financial reorganisation;

observable data at a portfolio (collectively analyzed) level indicating that there is a measurable decrease in the estimated future cash flows, although the decrease cannot yet be ascribed to individual loan in the portfolio – such as adverse changes in the payment status of customer in the portfolio or national or local economic conditions that correlate with defaults on the loans in the portfolio.

Loans and receivables are written off (the entire unpaid principal balance and related accrued interest balance) when we have determined that there is no longer any realistic prospect of recovery of part or all of the loans and receivable. The typical time frames from initial impairment to write-off are as follows:

Initial impairment starts from the date in which all or part of the loans and receivables fall into arrears.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Subsequent payments received from written-off loans and receivables are recognized in the income statement as recoveries.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Pursuant to agreements to resell, ~~we purchase~~the Bank purchases financial instruments, which are recorded as assets under the heading “Investments under agreement to resell”, and accrete interest under the effective interest rate method through the maturity date of the contract.

~~We also enter into repurchase agreements. In this regard, investments~~Investments sold subject to a repurchase obligation and which serve as security for the loan are recorded under the heading “Trading portfolio financial assets” or “Financial investments available-for-sale”, respectively. A repurchase obligation is classified as a liability and recorded as “Obligations under repurchase agreements” and accretes interest under the effective interest rate method through the maturity date of the contract.

The most significant criteria used by the Bank to recognize revenue and expenses are summarized as follows:

Interest revenue and expense are recorded on an accrual basis using the effective interest method.

The recognition of accrued interest in the consolidated income statement is suspended for loans individually classified as impaired and for those loans for which impairment losses have been assessed collectively. This interest is recognized as income, when collected, as a reversal of the related impairment losses.

Dividends received from investments in other companies are recognized in income when the right to receive them has been accrued and are presented under item “Income attributable to investments in other companies”.

The Bank ceases accruing interest on the basis of contractual terms on the principal amount of any asset that is classified as impaired. Thereafter, the Bank recognizes as interest income the accretion of the net present value of the written down amount of the loan due to the passage of time based on the original effective interest rate of the loan. On the other hand, any interest collected on assets classified as impaired is accounted for on a cash basis.

Nonaccrual loans are returned to an accrual status when: (i) in a period of at least four months a customer has made consecutive payments for past due obligations; (ii) future cash flow payments are consistent with expected future cash flows to be received; and (iii) the customer’s conditions improve after the original nonaccrual status classification.

Fee and commission income and expenses are recorded in the consolidated statements of income based on criteria that differ according to their nature. The main criteria are:

Income/expenses arising from transactions or services that are performed over a period of time are recorded over the life of such transactions or services.

Income/expenses originated by a specific act are recognized when the specific act has occurred.

Property, plant and equipment consist of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by the Bank or acquired under finance leases.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Property, plant and equipment for own use are measured at acquisition cost less accumulated depreciation and accumulated impairment losses. Property, plant and equipment also includes assets received in lieu of payment which are intended to be held for continuing own use (See Note 1.n. below) and assets acquired under finance leases (See Note 1.o. below).

Depreciation is calculated using the straight line method over the acquisition cost of assets minus their residual value. The land on which buildings and other structures stand has an indefinite life and, therefore, is not subject to depreciation.

The Bank applies the following useful lives to the fixed assets that comprise its total assets⁷⁸:

The consolidated entities assess at the end of each reporting date whether there is any indication that the carrying amount of any of their tangible assets exceeds its recoverable amount; if so, the carrying amount of the asset is reduced to its recoverable amount and future depreciation charges are adjusted in proportion to the revised carrying amount and to the new remaining useful life, if the useful life needs to be re-estimated.

Similarly, if there is an indication of a recovery in the value of a tangible asset, the consolidated entities record the reversal of the impairment loss recognized in prior periods and adjust the future depreciation charges accordingly. In no circumstance may the reversal of an impairment loss on an asset increase its carrying value above the one it would have had if no impairment losses had been recorded in prior years.

The estimated useful lives of the items of property, plant and equipment held for own use are reviewed at least at the end of each reporting period to determine significant changes therein. If changes are detected, the useful lives of the assets are adjusted by correcting the depreciation charge to be recorded in the consolidated statements of income in future years on the basis of the new useful lives.

Maintenance expenses are recorded as an expense in the period in which they are incurred.

Assets received or awarded in lieu of payment of loans and accounts receivable from customers are initially recognized at the price agreed by the parties, or otherwise, when the parties do not reach an agreement, at the value at which the Bank is awarded those assets at a judicial settlement. Such values approximate the assets’ market value as the valuations are determined from market-based evidence by appraisals undertaken by professionally qualified appraisers at the time of the receipt of the assets.

~~Finance leases are leases that substantially transfer all the risks and rewards incidental to ownership of the leased asset to the lessee.~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Finance leases are leases that substantially transfer all the risks and rewards incidental to ownership of the leased asset to the lessee.

When the Bank acts as the lessor of an asset, the sum of the present value of the lease payments receivable from the lessee plus the guaranteed residual value, which is generally the exercise price of the lessee’s purchase option at the end of the lease term, is recorded as loans to third parties and is therefore included under “Loans and accounts receivable from customers, net” in the consolidated statements of financial position.

When the Bank act as lessee, it shows the cost of the leased assets in the consolidated statements of financial position based on the nature of the leased asset, and simultaneously records a liability for the same amount (which is the lower of the fair value of the leased asset and the sum of the present value of the lease payments payable to the lessor plus, if appropriate, the exercise of the purchase option). The depreciation policy for these assets is consistent with that for property, plant and equipment for own use.

In both cases, the finance revenues and finance expenses arising from these contracts is credited and debited, respectively, to “Interest income” and “Interest expense” in the consolidated statements of income so as to achieve a constant rate of return over the lease term.

In operating leases, ownership of the leased asset and substantially all the risks and rewards incidental thereto remain with the lessor.

When the consolidated entities act as the lessor, they present the acquisition cost of the leased assets under property, plant and equipment. The depreciation policy for these assets is consistent with that for similar items of property, plant and equipment held for own use. Income from operating leases is recorded on a straight line basis under “Other operating income” in the consolidated statements of income.

When the consolidated entities act as the lessees, the lease expenses, including any incentives granted by the lessor, are charged on a straight line basis to “Administrative and other expenses” in the consolidated statements of income.

Intangible assets are identified as non-monetary assets (separately identifiable from other assets) without physical substance which arise as a result of a legal transaction or are separately identifiable. They are assets whose cost can be estimated reliably and from which the consolidated entities consider it probable that future economic benefits will be generated. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition.

These intangible assets are recorded initially at acquisition or production cost and are subsequently measured at cost less any accumulated amortization or any accumulated impairment losses.

An entity will evaluate whether the useful life of an intangible asset is finite or indefinite and, if finite, will evaluate the duration or number of units of production or other similar units that make up its useful life. The entity will consider an intangible asset to have an indefinite useful life when, on the basis of an analysis of all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity.

An intangible asset is accounted for based on its useful life. An intangible asset with a finite useful life is amortized over its economic useful life and reviewed to determine whether any indication of impairment may exist. The amortization period and method are reviewed at least once every reporting period. An intangible asset with an indefinite useful life is not amortized and the entity will determine if it has experienced an impairment loss by comparing its recoverable amount to its carrying amount on a yearly basis and at any time during the year in which there is an indication that its value may be impaired.

As of December 31, 2014 and ~~liabilities~~2015 and for the years ended December 31, 2013, 2014 and 2015

Contingent assets and liabilities are those operations or commitments in which the bank assumes a credit risk upon committing itself to third parties, before the occurrence of a future fact, to make a payment or disbursement that must be recovered from its clients.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The Bank keeps a record of the following balances related to commitments or to liabilities of its own line of business in memorandum accounts: Collateral and guarantees, confirmed foreign letters of credit, documentary letters of credit issued, bank vouchers, inter-bank vouchers, freely disposable lines of credit, other credit commitments and other contingencies.

The Bank and its subsidiaries have recorded income tax expense for each reporting period in accordance with current tax laws in the country where each ~~subsidiary~~of its entities and subsidiaries operates (see Note 15Current Taxes).

The tax expense on profit for the period includes the sum of current taxes that result from applying current tax rates to the taxable income for the period and the deferred tax expense recognized in consolidated profit or loss. The Bank and its subsidiaries recognize, when appropriate, deferred tax assets and liabilities for future estimates of tax effects attributable to differences between the book and tax values of assets and liabilities.

Deferred tax assets and liabilities are determined based on the tax rate applicable in the period that deferred tax assets and liabilities are recovered or settled. The effects of future changes in tax legislation or tax rates are recognized in deferred taxes when the tax legislation is enacted or substantially enacted. The effects of deferred taxes for temporary differences between the tax and book basis are recorded on an accrual basis in accordance with IAS 12 “Income Taxes”.

~~Law 20,630, published in the Official Gazette on September 27, 2012, increased the corporate income tax rate from 17% to 20% beginning January 1, 2013.~~

On September 29, 2014, Law 20,780 was published in the Official Gazette. The Law introduces modifications designed to increase revenue collection, finance education reform, make taxation more equitable and improve the current tax system.

As of period end, the deferred taxes of the Bank and its Chilean subsidiaries have been adjusted based on the new corporate income tax rates contained in Law 20,780, published on September 29, 2014. The law progressively increases the tax rate to 21% for commercial year 2014, 22.5% for 2015, 24% for 2016 and 25% for 2017 and beyond for taxpayers applying the Attributed Income System. Taxpayers applying the Semi-Integrated System will have a rate of 25.5% in 2017 and 27% in 2018 and beyond.

The deferred taxes of the Colombian subsidiaries have been adjusted based on the new income tax rates introduced by Law 1,739 published December 23, 2014, which modified the Colombian tax statutes and incorporated mechanisms to fight tax evasion. This modification to Colombian tax regulations raises tax rates to 34% for commercial year 2014, 39% for 2015, 40% for 2016, 42% for 2017, 43% for 2018 and then returns to 34% for 2019 and beyond.

In light of these modifications, the deferred taxes of ~~the~~ Chilean and Colombian companies have been recorded ~~at a maximum recovery or settlement rate~~according to the rates in the periods of ~~27%. The maximum tax rate applied on~~reversal of each temporary ~~differences of companies operating in Colombia is 43% for temporary differences to be reversed through 2018.~~difference.

The annual cost of employee vacations and benefits are recorded on an accrual basis.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Short-term benefits correspond to current liabilities as measured by the undiscounted amount that the Bank expects to pay over the course of the following year.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Other long-term benefits correspond to remuneration (other post-employment benefits and termination benefits). The amount recognized as a liability is the total net present value of the obligations at the end of the reporting period minus the fair value at the close of the reporting period of plan assets (if any) against which the obligations are settled directly.

For defined benefit retirement plans, the cost of benefits is determined using the projected units of credit method with actuarial valuations performed as of each year end. An entity shall use the projected unit credit method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost.

An entity shall recognise the components of defined benefit cost, except to the extent that another IFRS requires or permits their inclusion, as follows:

For the preparation of the cash flow statement, the Bank applied the indirect method, in which, starting with the Bank’s consolidated income before taxes, non-cash transactions are subsequently added/ subtracted, as well as income and expenses associated with cash flows classified as investing or financing activities.

The preparation of the cash flow statements takes the following items into account:

In the statement of cash flows, cash and cash equivalents are defined as cash balances and bank deposits plus the net balance of cash in the process of collection. Cash and cash equivalents balances and their reconciliation to the cash flow statement are detailed in Note 5 “Cash and cash equivalents”.

The provision for loan losses presented in the operating section does not agree to the amount presented in the statements of income because, for cash flow statement purposes, the provision for loan losses excludes recoveries of assets previously written-off.

The preparation of the financial statements requires Management to make estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates.

In certain cases, generally accepted accounting principles require that assets or liabilities be recorded or disclosed at their fair values. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where quoted market prices in active markets are not available, the

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Bank has estimated such values based on the best information available, including the use of modeling and other valuation techniques.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The Bank has established allowances to cover incurred losses, therefore to estimate the allowances, they must be regularly evaluated taking into consideration factors such as changes in the nature and volume of the loan portfolio, trends in forecasted portfolio quality, credit quality and economic conditions that may adversely affect the borrowers’ payment capacity. Increases in the allowances for loan losses are reflected as “Provisions for loan losses” in the Consolidated Statement of Income. Loans are charged off when management determines that a loan or a portion thereof is uncollectible. Charge-offs are recorded as a reduction of the provisions for loan losses.

The relevant estimates and assumptions are regularly reviewed by the Bank’s Management to quantify certain assets, liabilities, revenues, expenses, and commitments. Revised accounting estimates are recorded in the period in which the estimate is revised and in any affected future period.

These estimates, made on the basis of the best available information, mainly refer to:

Useful life of material and intangible assets (Notes 13, 14 and 31)

Valuation of goodwill (Notes 12, 13 and 31)

Provisions (Note 20)

Fair value of financial assets and liabilities (Notes 6, 7, 8, 11 and 34)

Contingencies and commitments (Note 22)

Impairment losses for certain assets (Notes 9,10, 11 and 31)

Current and deferred taxes (Note 15)

Consolidation perimeter and evaluation of control (Note 1.2, letter a)).

The Bank records within liabilities (provisions) the portion of profit for the year that should be distributed to comply with the Corporations Law (30%) or its dividend policy, which establishes that no less than 50% of profit for the years ~~2014~~2015 and ~~2013~~2014 should be distributed as dividends, as approved by shareholders in February 2013. For the years ~~2014~~2015 and ~~2013,~~2014, the Bank provisioned 50% of profit for the year. This provision is recorded within “provision for minimum dividends” by reducing “retained earnings” within the Consolidated Statement of Changes in Equity.

Basic earnings per share are determined by dividing the net income attributable to equity holders of the Bank in a period by the weighted average number of shares outstanding during the period.

Diluted earnings per share are determined in a similar manner as Basic Earnings per share, but the net income attributable to equity holders of the bank and the weighted average number of outstanding shares are adjusted to take into account the potential diluting effect of stock options, warrants, and convertible debt.

As of December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, the Bank did not have instruments that generated diluting effects on income attributable to equity holders of the Bank.

Assets are acquired for the benefit they will produce. Therefore, impairment occurs whenever their book value exceeds their recoverable amount; assets are tested for impairment whenever there are indicators that the carrying amount may exceed the recoverable value.

The Bank and its subsidiaries use the following criteria to test for impairment, if any:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

A financial asset that is not recorded at fair value through profit and loss is evaluated at each period end in order to determine whether there is objective evidence of impairment. As of each reporting date, the Bank assesses whether there is objective evidence that a financial asset or a group of financial assets may be impaired. Financial assets or asset groups are considered impaired only if there is objective evidence of impairment as a result of one or more loss events that occurred after the initial recognition of the asset and the loss event(s) had an impact on the estimated future cash flows of the financial asset or asset group that can be reliably estimated. It may not be possible to identify a single loss event that individually caused the impairment.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

An impairment loss for financial assets recorded at amortized cost is calculated as the difference between the asset’s carrying amount and the present value of the estimated future cash flows, discounted using the original effective interest rate of the financial asset.

Losses expected as the result of future events, whatever their probability, are not recognized. Objective evidence that an asset or group of assets is impaired includes observable data that comes to the attention of the asset holder about the following loss events: (i) significant financial difficulties of the issuer or the debtor; (ii) breach of a contract; (iii) granting of a concession by the lender to the issuer or the borrower, for economic or legal reasons relating to the borrower’s financial difficulty, that the lender would not otherwise consider; (iv) high probability of bankruptcy or other financial reorganization; (v) disappearance of an active market for a given financial asset due to financial difficulties; or (vi) evidence that there has been a measurable reduction in the estimated future cash flows from a group of financial assets since initial recognition, even if it cannot yet be identified with individual financial assets, including data such as: (a) adverse changes in the status of payments by borrowers included in the group; or (b) local or national economic conditions that are linked to delinquency for group assets).

Individually significant financial assets are examined individually to determine impairment. Remaining financial assets are evaluated collectively in groups that share similar credit risk characteristics. When the Bank determines that there is no objective evidence of impairment for an individually significant loan, it includes the loan in a group of loans of similar credit risk characteristcs and collectively evaluates such loans for impairment.

All impairment losses are recognized in the income statement. Any cumulative loss related to available-for-sale ~~financial assets~~debt instruments recognized previously in equity is transferred to the income statement, ~~when considered to be significant or prolonged.~~in the circumstances noted in f.10.

An impairment loss can only be reversed if it can be related objectively to an event occurring after the impairment loss was recognized. Reversal of impairment on financial assets recorded at amortized cost and those classified as available-for-sale debt instruments is recorded in the income statement.

The carrying amounts of the Bank’s non-financial assets, excluding investment property and deferred taxes, are reviewed regularly, or at least every reporting period, to determine whether indications of impairment exist. If such indication exists, the recoverable amount of the asset is then estimated. The recoverable amount of an asset is the greater of the fair value less costs to sell, whether for an asset or a cash-generating unit “CGU”, and its value in use. That recoverable amount is determined for an individual asset, unless the asset does not generate cash flows that are largely independent from the cash flows of other assets or asset groups.

When the carrying amount of an asset or CGU, exceeds its recoverable amount, the asset is considered to be impaired and its value is reduced to its recoverable amount.

Upon assessing the value in use of an individual asset or CGU, estimated future cash flows are discounted to present value using a before-tax discount rate that reflects current market assessments of the time value of money and the specific risks that an asset may have.

As of each reporting period, the Bank will evaluate whether there is any indication that an impairment loss recognized in prior periods for an asset other than goodwill no longer exists or could have decreased. If such indication exists, the entity will once

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

again estimate the asset’s recoverable amount. In evaluating whether indications that an impairment loss recognized in prior periods for an asset other than goodwill no longer exist or may have decreased in value, the entity will consider at least external sources (significant increase in market value of the asset; significant changes in technological, market, economic or legal environment affecting the asset; decrease in market interest rates or other investment rates of return which are likely to affect the discount rate used in calculating the asset’s value in use, resulting in higher recoverable amount) and internal sources during the period (in the immediate future, significant favorable changes in the manner in which the asset is used or is expected to be used; and available evidence from internal reporting indicating that the economic performance of the asset is or will be better than expected, including costs incurred during the period to improve or enhance the asset’s performance or restructure the operation to which the asset belongs).

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Impairment losses recognized in prior years are assessed at each reporting date in search of any indication that the loss has decreased or disappeared. An impairment loss will be reversed only to the extent that the book value of the asset does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Goodwill is tested annually to determine whether impairment exists and when circumstances indicate that its book value may be impaired. Impairment of goodwill is determined by evaluating the recoverable amount of each cash generating unit (or group of cash generating units) to which goodwill is allocated. Where the recoverable amount of the cash generating unit is less than its carrying amount, an impairment loss is recognized.

Goodwill acquired in a business combination shall be allocated as of the acquisition date among the CGUs or group of CGUs of the acquirer that are expected to benefit from the synergies of the business combination, regardless of whether other of the acquiree’s assets or liabilities are allocated to these units. Impairment losses relating to goodwill cannot be reversed in future periods.

In accordance with IAS 36 ~~“Impairment~~“Impairment of Assets”, annual impairment testing is required for a CGU to which goodwill has been allocated and for intangible assets with indefinite useful lives. Different CGU and different intangible assets can be tested for impairment at different times during the year as long as testing for the named asset is carried out at the same time each year.

Provisions are reserves involving uncertainty about their amount or maturity. They are recorded in the Consolidated Statement of Financial Position when the following copulative requirements are met:

a present (legal or implicit) obligation has arisen from a past event and;

as of the date of the consolidated financial statements is likely that the Bank and/or its controlled entities will have to disburse resources to settle the obligation and the amount can be reliably measured.

A contingent liability is any obligation that arises from past events whose existence will be confirmed only if one or more uncertain future event occurs not within the control of the Bank and its controlled entities.

The annual consolidated financial statements include all material provisions with respect to which it is considered more likely than not that the obligation will have to be settled.

Provisions which are quantified on the basis of the best available information regarding the consequences of the event that gives rise to them, and are re-estimated at the end of each accounting period are used to cover the specific obligations for which they were originally recognized, and are reversed in full or in part when those obligations cease to exist or are reduced.

Provisions are classified into the following groups in the Consolidated Statement of Financial Position based on the obligations they cover:

~~Employee benefits and compensation~~

~~Minimum dividends~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Employee benefits and ~~liabilities~~compensation

Accounting for transfers of financial assets is based on the degree and way in which the risks and rewards associated with the transferred assets are transferred:

As a result, financial assets will only be derecognized when the rights over the cash flows have been extinguished or when substantially all implicit rights and rewards have been transferred to third parties. Likewise, financial liabilities are only derecognized from the Statement of Financial Position when the obligations they generate have been extinguished or when they are acquired with the intention to settle them or place them once again.

The financial instruments issued by the Bank and subsidiaries are classified in the Consolidated Statement of Financial Position within “debt issued”, where the Bank has an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation by the exchange of a fixed amount of cash or other financial ~~asset~~asset.

As of December 31, 2014 and 2015 and for ~~a fixed number of shares.~~the years ended December 31, 2013, 2014 and 2015

After initial measurement, debt issued is subsequently measured at amortized cost using the effective interest rate. Amortized cost is calculated by taking into account any discount, premium or cost related directly to the issuance.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~bb) Assets, investment funds and pensions managed by the Bank and its subsidiaries~~

The assets managed by CorpBanca Administradora General de Fondos S.A. and CorpBanca Investment Trust Colombia S.A. that are owned by third parties are not included in the Consolidated Financial Statements the Bank and its subsidiaries do not have control over them. Fees generated by these activities are included in “fee and commission income” in the Consolidated Statement of Income.

The Bank and its subsidiaries provide trust and other fiduciary services that result in the holding or investing of assets on behalf of customers. Assets held in a fiduciary capacity are not reported in the consolidated financial statements, as they are not the assets of the Bank. Contingencies and commitments arising from this activity are disclosed in Note 22Contingencies, Commitments and Responsabilities,letter a).

The Bank and its subsidiaries maintain a customer loyalty program as an incentive to their customers. Through this program, customers can acquire goods and/or services based on purchases made primarily with credit cards issued by the Bank and by meeting certain conditions established in the program for that purpose.

Non-current assets (or disposal groups made up of assets and liabilities) that are expected to be recovered primarily through sale instead of through continued use are classified as held for sale. Immediately before being classified as such, the assets (or elements of a disposal group) are remeasured in accordance with the Bank’s accounting policies. From this time forward, assets (or disposal groups) are measured at the lesser of book value and fair value less costs to sell.

Impairment losses after the initial classification of assets held for sale and gains and losses after revaluation are recognized in profit or loss. Gains are not recognized if they exceed any accumulated loss.

As of December 31, ~~2013~~2014 and ~~2014,~~2015, the Bank did not have any non-current assets held for sale.

The Bank maintains its accounting records and prepares its consolidated financial statements in Chilean pesos. The U.S. dollar amounts disclosed in the accompanying financial statements are presented solely for the convenience of the reader at the December 31, ~~2014~~2015 closing exchange rate of Ch$~~605.46~~710.32 per US$1.00. This translation should not be construed as representing that the Chilean peso amounts actually represent or have been, or could be, converted into U.S. dollars at such a rate or at any other rate.

These consolidated financial statements as of December 31, 2015, have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (hereinafter “IASB”).

Management has determined that, as of December 31, 2014, the presentation of both 1) current tax assets and liabilities and 2) deferred tax assets and liabilities should be modified to conform to IAS 12, “Income Taxes.” The reclassification of current tax assets and current tax liabilities as at December 31, 2014 was made to conform to the requirements of paragraph 71 of IAS 12 which requires the offset of such assets and liabilities when there is a legally enforceable right to do so and the entity

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

intends to realize the asset and settle the liability simultaneously which requirements were met by CorpBanca. The reclassification of deferred tax assets and deferred tax liabilities was made to conform to paragraph 74 of IAS 12 which requires offset of such assets and liabilities when there is a legally enforceable right to offset current tax assets and liabilities and when deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the same taxable entity or different taxable entities when the realization of such assets and the settlement of liabilities are expected to occur simultaneously. Therefore, in the December 31, 2014 Statement of Financial Position, the Company reclassified MCh$104,341 of deferred tax assets as an offset to deferred tax liabilities and MCh$19,226 of current tax assets as an offset to current tax liabilities, respectively. Management has determined that the effects of these reclassifications are not material to the 2014 Statement of Financial Position. This presentation is consistent with the presentation as of December 31, 2015. Note 15 of these financial statements has been revised to reflect disclosure in accordance with such reclassifications.

Application of new and revised International Financial Reporting Standards (IFRS)

The following new and revised IFRS have been adopted in these financial statements:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~On December 16, 2011, the IASB amended the accounting requirements and disclosures related to offsetting of financial assets and financial liabilities by issuing amendments to IAS 32~~~~Financial Instruments: Presentation~~ ~~and IFRS 7~~~~Financial Instruments: Disclosures.~~ These amendments are the result of the IASB and US Financial Accounting Standards Board (‘FASB’ undertaking a joint project to address the differences in their respective accounting standards regarding offsetting of financial instruments. The amendments to IAS 32 are effective for annual periods beginning on or after January 1, 2014. Both require retrospective application for comparative periods.

The Bank’s management analyzed these amendments in detail and concluded that they did not have a significant impact on the statements of financial position, comprehensive income or cash flows or notes.

~~Investment Entities – Amendments to IFRS 10 – Consolidated Financial Statements; IFRS 12 – Disclosures of Involvement in Other Entities and IAS 27 – Separate Financial Statements~~

~~On October 31, 2012, the IASB published “Investment Entities (amendments to IFRS 10, IFRS 12 and IAS 27)”, providing an exemption from consolidation of subsidiaries under IFRS 10~~~~‘Consolidated Financial Statements’~~for entities which meet the definition of an ‘investment entity’, such as certain investment funds. Instead, such entities would measure their investment in particular subsidiaries at fair value through profit or loss in accordance with IFRS 9~~‘Financial Instruments’~~ ~~or IAS 39~~~~‘Financial Instruments: Recognition and Measurement’~~.

The amendments also require additional disclosure about why the entity is considered an investment entity, details of the entity’s unconsolidated subsidiaries, and the nature of relationship and certain transactions between the investment entity and its subsidiaries. In addition, the amendments require an investment entity to account for its investment in a relevant subsidiary in the same way in its consolidated and separate financial statements (or to only provide separate financial statements if all subsidiaries are unconsolidated). The amendments are effective for annual periods beginning on or after January 1, 2014, with early application permitted.

~~Amendments to IAS 36 – Recoverable Amount Disclosures for Non-Financial Assets~~

~~On May 29, 2013 the IASB published “Amends to IAS 36~~~~Recoverable Amount Disclosures for Non-Financial Assets~~~~. The publication of IFRS 13~~~~Fair Value Measurements~~ amended certain disclosure requirements in IAS 36 Impairment of Assets with respect to measuring the recoverable amount of impaired assets. However, one of the modifications to the disclosure requirements was more extensive than originally intended. The IASB has rectified this with the publication of these amendments to IAS 36.

The amendments to IAS 36 removed the requirement to disclose the recoverable amount of each cash-generating unit (group of units) for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit (group of units) was significant compared with the total carrying amount of goodwill or intangible assets with indefinite useful life of the entity. The amendments require an entity to disclose the recoverable amount of an individual asset (including goodwill) or a cash-generating unit to which the entity recognized or reversed deterioration during the reporting period. An entity shall disclose information about the fair value less costs to sell of an individual asset, including goodwill, or a cash-generating unit to which the entity recognized or reversed an impairment loss during the reporting period, including: (i) the level of the fair

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

value hierarchy (IFRS 13), (ii) the valuation techniques used to measure fair value less costs to sell, and (iii) the key assumptions used in fair value measurement categorized within “Level 2” and “Level 3” of the fair value hierarchy. In addition, an entity should disclose the discount rate used when an entity recognized or reversed an impairment loss during the reporting period and the recoverable amount should be based on the fair value less costs to sell determined using a present value valuation technique. The amendments should be applied retrospectively for annual periods beginning on or after January 1, 2014. Earlier application is permitted.

~~Amendments to IAS 39 – Novation of Derivatives and Continuation of Hedge Accounting~~

~~On June 2013, the IASB published Amendments to IAS 39 –~~~~Novation of Derivatives and Continuation of Hedge Accounting~~. This modification permits the continuation of hedge accounting (under IAS 39 and the next chapter on hedge accounting under IFRS 9) when a derivative is novated to a central counterparty and certain conditions are met.

A novation indicates an event where the original parties to a derivative agree that one or more clearing counterparties replace their original counterparty to become the new counterparty to each of the parties. In order to apply the amendments and continue hedge accounting, novation to a central counterparty must happen as a consequence of laws or regulations or the introduction of laws or regulations. The amendments are effective for annual periods beginning on or after January 1, 2014. Earlier application is permitted but corresponding disclosures are required. In accordance with IAS 8~~Accounting Policies, Changes in Accounting Estimates an Errors, the amendments are to be applied retrospectively.~~

On November 21, 2013, the IASB amended IAS 19 (2011) Employee Benefits to clarify the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. The amendments permit contributions that are independent of the number of years of service to be recognized as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to periods of service. Other contributions by employees or third parties are required to be attributed to periods of service either using the plan’s contribution formula or on a straight-line basis. The amendments are effective for periods beginning on or after July 1, 2014, with earlier application permitted.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

~~On May 20, 2013, the IASB published the IFRIC 21,~~~~Levies.~~The new interpretation provides guidance on when to recognize a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

This interpretation defines a levy as “a resource outflow involving future economic benefits that are imposed by governments on entities in accordance with the law”. Taxes within the scope of IAS 12~~Income Taxes~~ are excluded from the scope as well as fines and penalties. The payments to governments for services or the acquisition of an asset under a contractual arrangement are also excluded. That is, the tax should be a non-reciprocal transfer to a government when the tax paying entity does not receive goods or services in return. For the purpose of interpretation, a “government” is defined in accordance with IAS 20~~Accounting for Government Grants and Disclosures of Government Assistance~~. When an entity acts as an agent of a government to collect a tax, the cash flows received from the agency are outside the scope of this interpretation. This interpretation identifies the event which gives rise to the obligation to recognize a liability, which is the payment of tax in accordance with the relevant legislation.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

IFRIC 21 provides the following guidance on recognition of a liability to pay levies: (i) the liability is recognized progressively if the obligating event occurs over a period of time; (ii) if an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached. The interpretation is applicable retrospectively for annual periods beginnings on or after January 1, 2014.

~~The Bank’s management analyzed this IFRIC in detail and concluded that they did not have a significant impact on the statements of financial position, comprehensive income or cash flows or notes.~~

~~On November 12, 2009, the~~In 2014 IASB issued a finalized version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial ~~Instruments (IFRS 9). This Standard~~Instruments: Recognition and Measurement. The standard contains requirements in the following areas:

Classification and measurement: Financial assets are classified by reference to the business model within which they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a “fair value through other comprehensive income” category for certain debt instruments. Financial liabilities are classified in a similar manner to under IAS 39 Financial Instruments: Recognition and Measurement, however there are differences in the requirements applying to the measurement of an entity’s own credit risk.

Impairment: The 2014 version of IFRS 9 introduces an “expected credit loss” model for the measurement of the impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is recognized.

Hedge accounting: Introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures.

Derecognition: The requirements for the ~~classification and measurement~~derecognition of financial assets and is effective from 1 January 2013 with early adoption permitted. IFRS 9 specifies how an entity shall classify and measure its financial assets. This Standard requires that all financial assets be classified on the basis of an entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. Financial assetsliabilities are either measured at amortized cost or at fair value. Only those financial assets measured at amortized cost are tested for impairment. Additionally, on 28 October 2010, the IASB published a revised version of IFRS 9. The revised standard retains the requirements for classification and measurement of financial assets that were published in November 2009 but adds guidance on the classification and measurement of financial liabilities. As part of its restructuring of IFRS 9, the IASB also copied the guidance on derecognition of financial instruments and related implementation guidance from IAS 39 to IFRS 9. This new guidance concludes the first part of Phase 1 of the Board’s project to replace IAS 39. The other phases, impairment and hedge accounting, are not yet completed.

On December 16, 2011, the IASB issued Mandatory Effective Date of IFRS 9 and Transition Disclosures, deferring the mandatory effective date of both the 2009 and 2010 versions to annual periods beginning on or after January 1, 2015. Prior to the amendments, application of IFRS 9 was mandatory for annual periods beginning on or after January 1, 2013. The amendments modify the requirements for transitioncarried forward from IAS 39 Financial Instruments: Recognition and Measurement to IFRS 9. In addition, the amendments also modify IFRS 7 Financial Instruments: Disclosures to add certain requirements in the reporting period containing the date of initial application of IFRS 9.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

On November 19, 2013, has published an amendment to IFRS 9 “Financial Instruments” incorporating its new general hedge accounting model. This represents a significant milestone as it completes another phase of the IASB’s project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. The new general hedge accounting model will allow reporters to reflect risk management activities in the financial statements more closely as it provides more opportunities to apply hedge accounting.

The IFRS 9 amendment to introduce the new hedge accounting model removed the mandatory effective date for IFRS 9 which will be set once the standard is complete with a new impairment model and finalization of any limited amendments to classification and measurement, both of which are due to be finalized in 2014. The standard is available for early adoption (subject to local endorsement requirements), but if an entity elects to apply it must apply all of the requirements in the standard at the same time. On transition the hedge accounting requirements are generally applied prospectively with some limited retrospective applicationMeasurement.

IFRS 9 ~~(2014) was issued on 24 July 2014 and supersedes~~must be applied in an entity’s firs annual IFRS ~~9 (2013), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015~~

On July 24, 2014 the IASB has published the final version of IFRS 9 ‘Financial Instruments’ bringing together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. This version adds a new expected loss impairment model and limited amendments to classification and measurement for financial ~~assets. The Standard supersedes all previous versions of IFRS 9 and is effective~~statements for periods beginning on or after 1 January 2018.

~~Management~~ Early adoption is ~~still in the process of evaluating the potential impact of these amendments / new pronouncements~~.

On January 30, 2014 the IASB issued IFRS 14 Regulatory Deferral Accounts. This standard is applicable to first-time adopter of IFRS and for entities which are involved in rate-regulated activities and recognized regulatory deferral account balances under its previous general accepted accounting principles. This standard requires separate presentation of regulatory deferral account balances in the statement of financial position and statement of comprehensive income. IFRS 14 is effective for an entity’s firs annual IFRS financial statements for a period beginning on or after January 1, 2016, with earlier application permitted.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

On May 28, 2014, the IASB has published its new standard, IFRS 15 Revenue from contracts with customers. At the same time, the Financial Accounting Standards Board (FASB) has published its equivalent revenue standard, ASU 2014-09.

The new standard provides a single, principles based five-step model to be applied to all contracts with customers, i) identify the contract with the customer, ii) identify the performance obligations in the contract, iii) determine the transaction price, iv) allocate the transaction price to the performance obligations in the contracts, v) recognize revenue when (or as) the entity satisfies a performance obligation.

IFRS 15 must be applied in an entity’s firs annual IFRS financial statements for periods beginning on or after 1 January ~~2017.~~2018. Application of the Standard is mandatory and early adoption is permitted. An entity that chooses to apply IFRS 15 earlier than 1 January 2016 must disclose this fact.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~On January 13, 2016 the IASB has published a new standard, IFRS 16 “Leases”. The new standard brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Lessor accounting however remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 “Leases” and related interpretations and is effective for periods beginning on or after 1 January 2019, with earlier adoption permitted if IFRS 15 “Revenue from Contracts with Customers” has also been applied.

AsManagement is still in the process of ~~December 31, 2013 and 2014 and for~~evaluating the ~~years ended December 31, 2012, 2013 and 2014~~

Accounting for Acquisitions of interests in Joint Operations (Amendments to IFRS 11)

On May 6, 2014 the IASB has issued “Accounting for Acquisitions of Interests in Joint Operations (amendments to IFRS 11)”, the amendments clarify the accounting for acquisitions of an interest in a joint operation when the operation constitutes a business.

Amends IFRS 11 Joint Arrangements to require an acquirer of an interest in a joint operation in which the activity constitutes a business (as defined in IFRS 3 Business Combinations) to:

apply all of the business combinations accounting principles in IFRS 3 and other IFRSs, except for those principles that conflict with the guidance in IFRS 11

disclose the information required by IFRS 3 and other IFRSs for business combinations.

The amendments are effective for annual periods beginning on or after 1 January 2016. Earlier application is permitted but corresponding disclosures are required. The amendments apply prospectively.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)

On May 12, 2014 the IASB has published “Clarification of Acceptable Methods of depreciation and amortization (amendments to IAS 16 and IAS 38)”.

The amendments provide additional guidance on how the depreciation or amortisation of property, plant and equipment and intangible assets should be calculated. They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

On 30 June, 2014 the IASB has published ‘Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)’. The amendments bring bearer plants, which are used solely to grow produce, into the scope of IAS 16 so that they are accounted for in the same way as property, plant and equipment. The amendments are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Include ‘bearer plants’ within the scope of IAS 16 rather than IAS 41, allowing such assets to be accounted for a property, plant and equipment and measured after initial recognition on a cost or revaluation basis in accordance with IAS 16.

Introduce a definition of ‘bearer plants’ as a living plant that is used in the production or supply of agricultural produce, is expected to bear produce for more than one period and has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales .

Clarify that produce growing on bearer plants remains within the scope of IAS 41.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

On August 12, 2014, the IASB has published “Equity Method in Separate Financial Statements (Amendments to IAS 27)”. The amendments reinstate the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity’s separate financial statements.

The amendments allow an entity to account for investments in subsidiaries, joint ventures and associates in its separate financial statements:

In accordance with IFRS 9 Financial Instruments (or IAS 39 Financial Instruments: Recognition and Measurement for entities that have not yet adopted IFRS 9), or

Using the equity method as described in IAS 28 Investments in Associates and Joint Ventures.

In addition to the amendments to IAS 27, there are consequential amendments to IAS 28 to avoid a potential conflict with IFRS 10 Consolidated Financial Statements and to IFRS 1 First-time Adoption of International Financial Reporting Standards.

The amendments are effective for annual periods beginning on or after 1 January 2016. Earlier application is permitted. The amendments are to be applied retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

On September 11, 2014, the IASB has published ‘Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)’. The amendments address a conflict between the requirements of IAS 28 ‘Investments in Associates and Joint Ventures’ and IFRS 10 ‘Consolidated Financial Statements’ and clarify the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:

Require full recognition in the investor’s financial statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3 Business Combinations)

Require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognised only to the extent of the unrelated investors’ interests in that associate or joint venture.

On December 17, 2015 IASB has published final amendments to “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”. The amendments ~~are~~defer the effective ~~for annual periods beginning~~date of the September 2014 amendments to these standards indefinitely until the research project on ~~or after 1 January 2016. Earlier application is permitted.~~the equity method has been concluded”.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

On December 18, 2014 the IASB added an initiative on disclosure to its work program in 2013 to complement the work being done in the Conceptual Framework project. The initiative is made up of a number of smaller projects that aim at exploring opportunities to see how presentation and disclosure principles and requirements in existing Standards can be improved.

They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28).

On December 18, 2014 the IASB has published ‘Investment Entities: Applying the Consolidation Exception, Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011) to address issues that have arisen in the context of applying the consolidation exception for investment entities.

They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements..

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Management is still in the process of evaluating the potential impact of these amendments / new ~~pronouncements~~pronouncements.

On January 19, 2016, the IASB published final amendments to IAS 12 ‘Income Taxes’.

Unrealized losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument’s holder expects to recover the carrying amount of the debt instrument by sale or by use.

The carrying amount of an asset does not limit the estimation of probable future taxable profits.

Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences.

An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilization of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type.

The amendments are effective for annual periods beginning on or after 1 January 2017. Earlier application is permitted.

Management is still in the process of evaluating the potential impact of these amendments / new pronouncements.

The amendments are part of the IASB’s Disclosure initiative project and introduce additional disclosure requirements intended to address investors’ concerns that financial statements do not currently enable them to understand the entity’s cash flows; particularly in respect of the management of financing activities. The amendments require disclosure of information enabling users of financial statements to evaluate changes in liabilities arising from financial activities. Although there is no specific format required to comply with the new requirements, the amendments include illustrative examples to show how an entity can meet the objective of these amendments.

The amendments are effective for annual periods beginning on or after 1 January 2017. Earlier application is permitted.

Management is still in the process of evaluating the potential impact of these amendments / new pronouncements.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE 2—2 - ACCOUNTING CHANGES ~~AND ADJUSTMENT MEASUREMENT PERIOD IFRS 3~~

Management has determined the effect of the retrospective application as well as the effect of the finalization of the fair values of the assets acquired and liabilities assumed and non-controlling interest in the Helm Bank and subsidiaries acquisition were not material as of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014.

No accounting changes have taken place in comparison with the prior periods ~~presented.~~

~~The initial accounting~~presented, except for the ~~business combination by Helm Bank and subsidiaries (see Note 12~~ ~~Investments in other companies~~~~) was incomplete~~reclassifications noted at the end of the accounting period in which the combination occurred (December 31, 2013), therefore, the acquirer (CorpBanca Colombia) reported in its consolidated financial statements provisional amounts for the items for which the accounting was incomplete.

During the measurement period, the acquirer retrospectively adjusted the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed at the date of acquisition and that, had they been known, would have affected the measurement of the amounts recognized at that date. During the measurement the acquirer also recognized additional assets or liabilities, where applicable, as new information obtained about facts and circumstances that existed at the date of acquisition and which, had they been known, would have resulted in the recognition of those assets and liabilities that date. The measurement period did not exceed one year from the date of acquisition (in our case August 06, 2014). There was no impact on the 2013 Consolidated Statements of Income.

~~i) Adjustment to December 31, 2013, Consolidated Statement of Financial Position~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~iii) Fair Value of the Identifiable Assets and Liabilities of Helm Bank and Subsidiaries as of the Date of Acquisition (August 6, 2013) (See Note 12~~~~Investment in other companies)~~:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, ~~2014,~~2015, the following relevant events affecting the operations of the Bank and its subsidiaries or the consolidated financial statements have occurred:

On ~~April 7, 2014, Francisco León Délano submitted his resignation~~February 20, 2015, the board agreed to publicly communicate, as ~~director of CorpBanca.~~essential events, the following matters:

~~As indicated in his letter of resignation, this decision was made~~That an ordinary general shareholders’ meeting had been convened for March 12, 2015, in order to ~~take a position on~~conduct routine business and, among other items, to approve the ~~board~~financial statements for 2015 that report profit of ~~a capital markets entity.~~

~~At the board meeting held on April 29, 2014, the board appointed Julio Barriga Silva to replace Francisco León Délano as director until the next ordinary general shareholders’ meeting.~~

On January 29, 2014, a “Transaction Agreement” with signed by CorpBanca, Inversiones Corp Group Interhold Limitada, Inversiones Saga Limitada (these last two together “CorpGroup”), Itaú-Unibanco Holding, S.A. (“Itaú-Unibanco”) and Banco Itaú Chile, by virtue of which these parties have agreed to a strategic partnership of their operations in Chile and Colombia, subject to prior authorization from the corresponding regulatorsMCh$226,260, and the ~~shareholders~~board’s proposal to distribute MCh$113,130 in earnings, representing 50% of ~~CorpBanca and Banco Itaú Chile, as indicated below.~~

~~This strategic partnership will be structured as~~2014 profit for the year, which translates into a ~~merger~~dividend of ~~CorpBanca and Banco Itaú Chile in conformity with the aforementioned Transaction Agreement, detailed as follows:~~

~~1. Prior Acts.~~ CorpGroup will dispose of the shares it directly or indirectly holds in CorpBanca, equivalent to 1.53% of the share capital of that bank and Banco Itaú Chile will increase its capital by US$652 million, by issuing shares that will be fully subscribed and paid by a fully-owned (direct or indirect) subsidiary of Itaú-Unibanco.

~~2. Merger.~~ The merger of CorpBanca and Banco Itaú Chile, by which CorpBanca will absorb Banco Itaú Chile to form an entity called “Itaú-CorpBanca” will be submitted for approval from the shareholders of both entities at extraordinary shareholders’ meetings. If the merger is approved, 172,048,565,857 shares of CorpBanca will be issued, representing 33.58% of the share capital of the merged bank, which will be distributed among the shareholders of Banco Itaú Chile. The current shareholders of CorpBanca will maintain 66.42% of the share capital of the merged bank. Thus, the number of shares will increase from 340,358,194,234 to 512,406,760,091 shares, which will be fully subscribed and paid.

~~3. Control.~~As a result of the merger, Itaú-Unibanco will become a shareholder of CorpBanca and, as a result of the exchange of shares for this merger, will acquire control of the merged bank in accordance with Articles 97 and 99 of Law 18,045 on Securities Markets, with CorpGroup retaining a considerable interest in the merged entity with 32.92% of the share capital and 33.50% of that capital in the market⁸.

~~4. Colombia.~~ In order to strengthen and consolidate the Bank’s operations in Colombia, subject to applicable restrictions under Colombian law, the merged bank will own 66.28% of the shares of Banco CorpBanca Colombia S.A., and will make an offer to acquire the remaining 33.72% of the shares that it does not own. This portion includes 12.38% currently owned indirectly by CorpGroup, which has committed to selling those shares. The priceCh$0.332384912 per share to be ~~offered~~distributed among all 340,358,194,234 shares issued by ~~Itaú-CorpBanca will be equal for all shareholders~~the Bank.

On that same date, the board agreed to distribute and ~~correspond to~~pay the ~~valuation given to Banco~~dividends once the shareholders’ meeting had concluded.

In a meeting on December 15, 2015, the Board of Directors of CorpBanca ~~Colombia S.A.~~approved the first issuance of senior bonds as part of the senior and/or subordinated bond issuance program with an overall cap of COP$3 billion (MCh$679.800 approximately). The board approved the general conditions for the share exchange for the merger. The price for the 33.61% interest in Banco CorpBanca Colombia S.A., in the event it is sold, will be US$894 million. With the same objective, Itaú-CorpBanca will acquire Itaú BBA Colombia S.A., Corporación Financiera, the entity through which Itaú-Unibanco does business in that country. The price to be paid will be carrying amount, based on the most recent financial statements reported to the banking regulator in Colombia.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~5. Course of Business.~~ Between the signing of the Transaction Agreement and the execution of the merger, the parties have agreed that both CorpBanca and Banco Itaú Chile have certain restrictions during that period, which consist fundamentally of continuing to conduct business in a way substantially similar to how they have been conducting business up to this point.

~~6. Shareholder Agreement.~~ The Transaction Agreement contemplates, likewise, that when the transaction is closed in Chile, CorpGroup and Itaú-Unibanco will sign a shareholder agreement to regulate certain matters regarding the exercise of their political rights in Itaú-CorpBanca and matters regarding the transfer of shares:

It will establish that the board of directors of the merged bank has 11 standing members and 2 alternates. Of the directors that may be elected by the shareholders agreement between CorpGroup and Itaú-Unibanco, the majority will be proposed by Itaú-Unibanco, based on its shareholding and the remaining directors will be proposed by CorpGroup. The Chairman will be proposed by CorpGroup and the CEO by Itaú-Unibanco. Most committees with directors will be proposed by Itaú-Unibanco, based on its shareholding.

Likewise, subject to current regulations, CorpGroup undertakes to exercise its political rights in alignment with Itaú-Unibanco. CorpGroup will grant in favor of Itaú-Unibanco a pledge over 16% of the assets of the merged bank to guarantee the obligations undertaken in the shareholder agreement, with CorpGroup maintaining the right to exercise its political and economic rights that emanate from the pledged shares.

It will reflect the intention of the parties in the sense that the merged bank will distribute all available profits for each year after ensuring certain capital adequacy levels so that Itaú-CorpBanca complies fully with regulatory requirements and industry best practices.

~~It will also impose certain non-complete obligations on CorpGroup and Itaú-Unibanco with respect to the merged bank.~~

~~Lastly, regarding the share transfer, it will establish a right of~~ first offer, a right to join third-party sales and the obligation to join third-party sales. It will also establish in favor of CorpGroup a sale and purchase right over 6.6% of the shares of the merged bank as a short-term liquidity mechanism, and a sale right as an alternative to keeping its interest in the merged bank. In both cases, the price will be market price with no premium, and will favor, as a first option, sales on the market through the Santiago Stock Exchange.

The close of the transaction contemplated in the Transaction Agreement is subject to obtaining the relevant regulatory authorizations as well as approval of the merger from shareholders of CorpBanca and Banco Itaú Chile in the respective extraordinary shareholders’ meetings that will be called to approve the merger.

~~On October 15, 2014, Itaú Unibanco, the controlling shareholder of Itaú Chile, reported in Brazil that the Brazilian Central Bank had authorized the transaction to merge with CorpBanca.~~

On December 26, 2014, the Colombian Financial Superintendency approved the merger. Completion of the merger continues to be conditional upon approval from the shareholders of Banco Itaú Chile and CorpBanca, as well as regulatory approval in Chile from the SBIF, in Panama from the Banking Superintendency (SBP) and the Securities Market Superintendency (SMV) and in Colombia from the Colombian Stock Exchange (BVC).

~~In accordance with current Chilean law, SBIF authorization must be issued after the shareholders of CorpBanca and Banco Itaú Chile approve the merger at extraordinary shareholders’ meetings.~~issuance.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012, 2013 and 2014~~

The signing of the Transaction Agreement was approved by the Board of Directors of CorpBanca, based on a favorable report from the Directors’ Committee, complying with the other requirements established in Section XVI “On Operations with Related Parties Involving Publicly-Held Corporations and their Subsidiaries” in Law 18,046 on Corporations.

~~In a meeting of the Board of Directors of CorpBanca held February 20, 2014, the board agreed to publicly communicate, as material events, the following matters:~~

The board agreed to convene an ordinary general shareholders’ meeting on March 13, 2014, in order to conduct routine business, as well as, among other items, approve the financial statements for 2013 that report profit of MCh$155,093 and approve the board’s proposal to distribute MCh$88,403 in earnings, representing 57% of 2013 profit for the period, which translates into a dividend of Ch$0.2597360038 per share to be distributed among all 340,358,194,234 shares issued by the Bank.

On March 13, 2014, in an ordinary general shareholders’ meeting, shareholders agreed to distribute MCh$ 88,403 in earnings, representing 57% of profit for the year. The remaining 43% was left as retained earnings.

Shareholders approved the distribution of dividends and agreed that all shareholders registered in the shareholders’ registry at least five business days prior to the date of payment shall be entitled to receive dividends.

~~The Bank records within liabilities (provisions) the portion of profit for the year that should be distributed to comply with the Corporations Law (30%) or its dividend policy (See Note 1.v).~~

~~d. Evaluation of Strategic Partnership between Itaú – Unibanco and CorpBanca Requested by IFC~~

On July 4, 2014, CorpBanca was informed by its main shareholder, CorpGroup, that on July 2, 2014, the International Finance Corporation (“IFC”) formally communicated its decision to hire an investment bank to evaluate the terms and conditions of the agreement to merge with Banco Itaú Chile and the subsequent taking of control of the merged bank by Itaú Unibanco. Hereinafter, hereinafter the “transaction”. This evaluation would be in addition to those already issued by investment banks Bank of America Merrill Lynch and Goldman Sachs that were taken into consideration by the Bank’s Directors’ Committee and board of directors in approving the transaction.

According to the IFC, this evaluation would be done within the framework of the entity’s analysis to decide whether to grant its consent, which is needed before the transaction can take place, based on the terms of the Transaction Agreement entered into by CorpBanca and its controlling shareholder with Banco Itaú Chile and its controlling shareholder. The text of this agreement was published on the Bank’s website.

On December 10, 2014, the IFC and IFC Asset Management Company notified that they are prepared to give their consent of the merger between Banco Itaú Chile and CorpBanca. They indicated that the merger is consistent with their initial investment strategy and will create an even stronger regional financial entity in Latin America with greater capacity to support companies and broaden access to financing in the region.

~~e. Analysis of Strategic Partnership by National Economic Prosecutor’s Office~~

In December 2013, after CorpBanca announced its intentions to seek a strategic partner, the National Economic Prosecutor’s Office (FNE) launched an investigation to “analyze the possible risks involved in such a transaction” in terms of free competition.

On January 29, 2014, CorpGroup Interhold Limitada and Itaú Unibanco announced that they had signed an agreement to merge their respective banks, CorpBanca and Itaú Chile. This transaction would involve a capital increase by Itaú Chile, leaving CorpBanca as the surviving entity.

On June 25, 2014, the FNE concluded that “it did not find this transaction to create a threat to free competition” and recommended the investigation be closed. This concludes the first major step in the regulatory processes that must be completed for the potential merger to take place.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

On July 4, 2014, Cartica Management, LLC (“Cartica”), a hedge fund and minority shareholder of CorpBanca that filed a lawsuit in the United States against CorpBanca, its directors and part of its senior management, voluntarily withdrew all lawsuits against several directors. On July 10, 2014, Itaú also filed a motion to dismiss the lawsuit. On July 15, 2014, the defendants filed a joint motion opposing the petition for disclosure filed by Cartica as per the PSLRA⁹. Finally, on July 28, 2014, the parties filed briefs containing their responses in support of their respective motions. These briefs were concluded and the defendants expressed to the court that they saw no need for oral arguments.

CorpBanca continues to make progress on the merger process as scheduled and will firmly oppose any effort by Cartica to block the transaction. The Bank believes that it made the right decision in recommending the merger agreement to all shareholders. In addition to being the greatest strategic partnership any Chilean bank has attained, it will enable CorpBanca to take a qualitative step forward in the regional financial business. It also believes that the merger agreement with Banco Itaú Chile adds value for all shareholders of CorpBanca on equal terms.

On September 26, 2014, the Bank received the ruling from the United States District Court for the Southern District of New York in which it fully dismissed the lawsuit filed by Cartica, including all actions against CorpBanca, its directors and executives, CorpGroup and its controlling shareholder.

Cartica sought to delay the proposed merger between Banco Itaú Chile and obtain compensation only for itself. The court rejected the petition for injunctive relief to block the transaction under U.S. federal securities laws. It also concluded that CorpGroup and Itaú had already disclosed the necessary information regarding its shareholder agreement and refused to exercise jurisdiction over Cartica’s claim of fraud under state law. Since the lawsuit was filed, CorpBanca has consistently stated that the suit has no ground.

On September 23, 2014, the Bank placed five-year bonds on international markets totaling MUS$ 750, with payment due at maturity and interest payments of 3.875% per annum payable semi-annually in March and September of each year.

The issuance and placement of these bonds was in accordance with Rule 144A and Regulation S of the United States Securities Act of 1933. According to these standards, the bonds did not need to be registered with the U.S. Securities and Exchange Commission (SEC).

The Bank agreed to place the bonds with a return of 4.022% per year, equivalent to a spread of 225 annual basis points over the five-year US Treasury Rate. The net amount from the placement will be used by the Bank mainly for general corporate objectives, particularly to fund loan activities.

As part of the Bank’s global strategy to diversify funding, on July 22, 2014, it amended a prior syndicated loan, increasing the principal from MUS$199.4 to MUS$490, due in 15 months at a rate of 90-day Libor plus +85 basis points. Eleven banks participated in this transaction, led by Standard Chartered Bank; HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC., which acted as global coordinators.

On September 29, 2014, Law No. 20,780 was published in the Official Gazette. This law introduced several amendments to the current system for income and other taxes. The main amendments include a progressive increase in corporate income tax rates for commercial years 2014, 2015, 2016, 2017 and from 2018 forward to 21%, 22.5%, 24%, 25.5% and 27%, respectively, for entities applying the semi-integrated system. Or, an increase for commercial years 2014, 2015, 2016 and from 2017 forward to 21%, 22.5%, 24% and 25%, respectively, for entities that choose to apply the attributed income system.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

At the twenty-ninth ordinary general shareholders’ meeting held on March 12, 2014, the shareholders approved the financial statements and annual report as of December 31, 2013. At the same meeting, the Chairman proposed to shareholders that all profits for the year ended 2013, totaling MCh$ 2,603, be distributed as dividends. The proposal was unanimously approved by those shareholders present, agreeing to authorize the board of directors to decide when these dividends will be paid during 2014. The dividends were paid on December 26, 2014.

In an ordinary meeting (No. 282) of the board of directors held May 23, 2014, the board accepted the resignation of the following directors: Pablo De la Cerda Merino, Andrés Garcia Lagos and Gerardo Schlotfeldt Leighton.

In the same meeting, in accordance with article 71 of the Corporations Regulations, the following directors were appointed to replace them: Cristian Canales Palacios, Carlos Ruiz de Gamboa Riquelme and Eugenio Gigogne Miqueles. Lastly, as one of the resigning directors served as the vice-chairman of the board, Cristian Canales Palacios was elected the new vice-chairman.

In the twenty-first ordinary general shareholders’ meeting held March 12, 2014, shareholders unanimously agreed to distribute profits for the year ended December 31, 2013, totaling MCh$2,206, and agreed to authorize the board of directors to determine the date these dividends will be paid to shareholders. This payment was made on December 22, 2014.

In an ordinary board meeting held on April 28, 2014, director Alberto Selman Hasbún presented his letter of resignation, which became effective on that same date. The subsidiary’s board of directors appointed Felipe Hurtado Arnolds to replace him.

In an extraordinary board meeting held on May 23, 2014, director Cristián Canales Palacios presented his letter of resignation, which became effective on that same date. The board of directors appointed Pablo De la Cerda Merino to replace him. As of that date, the subsidiary’s board of directors was comprised of: José Francisco Sánchez Figueroa as chairman, José Manuel Garrido Bouzo as vice-chairman, and Felipe Hurtado Arnolds, Américo Becerra Morales and Pablo De la Cerda Merino as directors.

In a letter dated October 27, 2014, the company was notified of a ruling dated October 22, 2014, from the Best Practices Committee of the Santiago Stock Exchange to initiate sanction proceedings against CorpBanca Corredores de Bolsa S.A. for violation of section B, point 4.1.6 of the Brokers’ Rights and Obligations Manual.

At the seventeenth ordinary general shareholders’ meeting held April 25, 2014, shareholders agreed to distribute profits for the year 2013 of MCh$7,722, which was prorated among shareholders on August 26, 2014, based on their ownership interests.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~On December 15, 2014, Andrés Covacevich Cornejo submitted his resignation as director of CorpBanca, which was reported to the SVS.~~

In board meeting No. 193 held on December 18, 2014, the subsidiary’s CEO presented to the chairman of the board the letter of resignation from Andrés Covacevich Cornejo, director, which was accepted by the board as of that date. In this place, the board agreed to appoint Richard Kouyoumdjian Inglis as a Replacement Director until the next shareholders’ meeting in accordance with the last paragraph of article 32 of Law 18,046 on Corporations. Kouyoumdjian accepted the appointment and joined the board as of that date.

The fourth ordinary general shareholders’ meeting was held on April 30, 2014. At this meeting, shareholders elected the following individuals to the company’s board of directors: Pablo Ignacio Herrera Abalos, Ignacio Ruiz-Tagle Mena and Marcelo Sánchez García.

In an extraordinary meeting held May 14, 2014, because this subsidiary no longer engages in the activities it is authorized to conduct, the board agreed to request that it be removed from the SVS Broker and Securities Agent Registry maintained in accordance with article 24 of the Securities Market Law and General Character Standard 16.

On May 15, 2014, a request for voluntary cancellation of the mentioned registration was filed with the SVS. Via exempt ruling No. 216 of August 25, 2014, the SVS cancelled registration number 200 for CorpBanca Agencia de Valores S.A. in the Securities Broker/Dealer Registry.

On June 25, 2014, the subsidiary’s parent company (i.e. Banco CorpBanca) requested authorization to dissolve the agency from the SBIF in accordance with Chapter 11-6 of the SBIF’s Updated Compilation of Standards. The dissolution will take place through a transaction by which CorpBanca will acquire all shares in the agency held by CorpBanca Corredores de Bolsa S.A. As a result, the Bank will come to hold all of the shares of the agency and, once ten uninterrupted days have passed, the dissolution will take place in accordance with article 103 No. 2 of Law 18,046 on Corporations.

~~By means of a letter dated July 18, 2014, the SBIF authorized the dissolution of CorpBanca Agencia de Valores S.A.~~

On September 25, 2014, CorpBanca acquired from CorpBanca Corredores de Bolsa S.A. the two shares it held in CorpBanca Agencia de Valores S.A. so that the Bank came to hold all of the shares of the agency and, once ten uninterrupted days have passed, the dissolution will take place in accordance with article 103 No. 2 of Law 18,046 on Corporations.

~~In a meeting of the board of directors on July 22, 2014, Alvaro Barriga Oliva presented his resignation. Pablo De la Cerda Merino was elected to replace him.~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~In an ordinary general shareholders’ meeting held March 6, 2014, the board elected the following individuals to the company’s board of directors.~~

At the twenty-second ordinary meeting of the subsidiary’s board of directors held June 30, 2014, the board accepted the resignation of Fernando Ureta Rojas and unanimously appointed Arturo Silva Ortiz to replace him until the next ordinary shareholders’ meeting.

According to the minutes of the sixth extraordinary meeting of the Board of Directors of SMU Corp S.A., held October 1, 2014, the subsidiary’s chief executive officer, Eulogio Guzmán Llona, presented his resignation effective October 10, 2014. The board of directors accepted his resignation and agreed to appoint Paulo Gajardo Escobar as interim chief executive officer effective October 11, 2014.

According to the minutes of the seventh extraordinary meeting of the Board of Directors of SMU Corp S.A., held October 30, 2014, the subsidiary’s interim CEO, Paulo Gajardo Escobar, presented his resignation effective October 31, 2014. The board of directors accepted his resignation and agreed to appoint Javier Miranda Valenzuela as interim chief executive officer effective November 1, 2014.

On January 31, 2014, CorpBanca paid for 172 shares, equivalent to MCh$ 138, and SMU S.A. paid for 164 shares, equivalent to MCh$ 131, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

On February 28, 2014, CorpBanca paid for 160 shares, equivalent to MCh$ 128, and SMU S.A. paid for 154 shares, equivalent to MCh$ 123, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

On March 31, 2014, CorpBanca paid for 149 shares, equivalent to MCh$ 119, and SMU S.A. paid for 143 shares, equivalent to MCh$ 114, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

On April 30, 2014, CorpBanca paid for 141 shares, equivalent to MCh$ 113, and SMU S.A. paid for 135 shares, equivalent to MCh$ 108, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

On May 30, 2014, CorpBanca paid for 146 shares, equivalent to MCh$ 117, and SMU S.A. paid for 141 shares, equivalent to MCh$ 113, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

On June 30, 2014, CorpBanca paid for 146 shares, equivalent to MCh$ 117, and SMU S.A. paid for 141 shares, equivalent to MCh$ 113, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held March 12, 2013, which was recorded in public deed on March 26, 2013, granted before Santiago Notary Public José Musalem Saffie.

At the sixth extraordinary general shareholders’ meeting held on July 31, 2014, shareholders agreed to increase capital from MCh$ 19,040 divided into 23,800 single-series shares with no par value, fully subscribed and paid, to MCh$ 21,540, divided into 26,925 shares.

This capital increase of MCh$ 2,500 will take place by issuing 3,125 shares with the same characteristics as the existing shares (i.e. nominative, common, single-series with no par value), which will be subscribed and paid over a period of two years from the date of this meeting as required by business needs.

The aforementioned amendments to the bylaws were recorded in public instrument dated August 13, 2014, granted before Santiago Notary Public José Musalem Saffie; an abstract was published in edition no. 40,958 of the Official Gazette on September 13, 2014, and registered on page 63885 under number 39211 of 2014 in the Santiago Commerce Registry.

On July 31, 2014, CorpBanca paid for 158 shares, equivalent to MCh$ 126, and SMU S.A. paid for 153 shares, equivalent to MCh$ 122, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held July 31, 2014, which was recorded in public deed on September 13, 2014, granted before Santiago Notary Public José Musalem Saffie.

On August 29, 2014, CorpBanca paid for 146 shares, equivalent to MCh$ 117, and SMU S.A. paid for 141 shares, equivalent to MCh$ 113, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held July 31, 2014, which was recorded in public deed on September 13, 2014, granted before Santiago Notary Public José Musalem Saffie.

On September 30, 2014, CorpBanca paid for 139 shares, equivalent to MCh$ 111, and SMU S.A. paid for 134 shares, equivalent to MCh$ 108, as part of the capital increase agreed upon at the extraordinary general shareholders’ meeting held July 31, 2014, which was recorded in public deed on September 13, 2014, granted before Santiago Notary Public José Musalem Saffie.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~In March 2014, shareholders of Banco CorpBanca Colombia and the other companies within the CorpBanca Colombia Group met and agreed to distribute profits as follows:~~

In accordance with article 451 of the Colombian Commerce Code, the proposed distribution for 2013 profits does not include amounts for statutory reserves, occasional reserves or tax payments. Therefore, 100% of profit for the year will be allocated to legal reserves.

~~In accordance with the irrevocable commitment approved in an extraordinary meeting on July 18, 2013.~~

Dividend payment of COP$731.25 per share for 7,510,522 outstanding common shares, payable in cash to shareholders registered as of April 1, 2014, of which Banco CorpBanca Colombia received MCOP$5,190 (MCh$1,452) and CorpBanca Chile received MCOP$302 (MCh$84).

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

A dividend of COP$9.40 per share was declared for preferential shares based on “The prospectus for the preferential share issuance”, for a total of 571,749,928 shares subscribed and paid as of December 31, 2013, charged to profit for the year.

Dividend payment of COP$3,919 per share for 1,500,000 shares subscribed and paid as of December 31, 2013, payable in cash as of April 15, 2014, including amounts withheld as required by Colombian law, of which Banco CorpBanca received MCOP$5,581 (MCh$1,561) and CorpBanca Chile received MCOP$297 (MCh$83).

~~b. Notice of Takeover Bid for Preferential Dividend and Non-Voting Shares of Helm Bank S.A.~~

~~On January 23, 2014, the Colombian Stock Exchange (BVC) informed the general public of the final results of the takeover bid presented in 2013 by CorpBanca Colombia to the shareholders of Helm Bank.~~

~~On January 27, this transaction was paid as described in Note 21~~~~Other Liabilities~~~~, giving it a total interest of 99.78% in Helm Bank.~~

On February 4, 2014, the legal representatives of Banco CorpBanca Colombia S.A., and Helm Bank S.A., loan entities headquartered in the city of Bogota D.C., in compliance with article 57 of the Organic Statutes of the Financial System (hereinafter “EOSF”), hereby notify their shareholders:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Preferential Shares of Helm Bank, which represent 99.38% of these shares and 12.28% of the total subscribed and paid capital of Helm Bank, acquisitions that were carried out for the purposes of the merger and were previously authorized by the SFC in July 2013, giving it a 99.78% interest. In order to comply with article 55 et seq. of the EOSF, these entities must complete the merger during the year following the date of the first acquisition of shares of Helm Bank by CorpBanca Colombia (i.e. before August 6, 2014).

The financial statements of CorpBanca Colombia and Helm Bank as of June 30, 2013, duly audited and approved by shareholders at the extraordinary general shareholders’ meeting on April 4, 2014, will serve as the basis for establishing the merger conditions. The discounted dividend method (DDM) was used to determine the value of the banks. This robust, efficient and reliable technical methodology is widely accepted locally and internationally for valuing financial entities. The exchange ratio is determined as follows (information in COP$):

Once merged, based on the valuation of the shares of CorpBanca Colombia, for every 10.876 common shares and/or preferential dividend and non-voting shares of Helm Bank, its shareholders will receive one (1) share of CorpBanca Colombia. For this, CorpBanca Colombia will issue 1,239,863 common shares to fulfill the aforementioned exchange ratio at a value of COP$6,125.683 per share.

On July 1, 2014, the merger between Banco CorpBanca Colombia S.A., as the absorbing entity, and Helm Bank S.A., as the absorbed entity, was formalized. As a result, Helm Bank S.A. is dissolved without being liquidated and all of its assets, rights and obligations are transferred fully to the absorbing entity.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

In order to carry out the exchange of shares for the merger, the absorbing company (Banco CorpBanca Colombia S.A.) issued 1,239,784 common shares of Banco CorpBanca Colombia S.A. at a nominal value of COP$525.11, which increases the subscribed and paid capital of Banco CorpBanca Colombia S.A. by MCh$192 (MCOP$651), resulting in its new subscribed and paid capital of MCh$116,727 (MCOP$396,356).

~~In accordance with article 60-5 of the EOSF, this issuance is not subject to issuance or takeover bid regulations and does not require authorization from the SFC.~~

~~On June 27, 2014, the following changes to the shareholders of Banco CorpBanca Colombia were reported:~~

~~Fitch Ratings retracted its domestic ratings for Helm Bank S.A. and its issuance programs after the legal merger with Banco CorpBanca Colombia.~~

~~On July 1, 2014, Fitch assigned long and short-term domestic ratings of “AAA(col)” and “F1+(col)” to Banco CorpBanca Colombia, detailed as follows:~~

~~Long-term domestic rating of ‘AAA (col)’ with a stable outlook;~~

~~Short-term domestic rating of F1+(col);~~

~~Fitch Ratings Colombia S.A. assigned ratings to the Senior and/or Subordinated Bond Issuance Programs as part of the global quota of Helm Bank (today Banco CorpBanca Colombia S.A.)~~

Fitch Ratings Colombia S.A. assigned ratings to the Multiple and Successive Issuances of Senior Bonds Helm Leasing as part of the global quota of COP$1.5 billion of Helm Bank (today Banco CorpBanca Colombia S.A.)

~~Fitch Ratings Colombia S.A. assigned ratings to the Multiple and Successive Issuances of Senior Bonds of Helm Bank for COP$1.5 billion (today Banco CorpBanca Colombia S.A.)~~

Towards the end of 2013, Banco CorpBanca Colombia, the International Finance Corporation (IFC), a member of the World Bank Group, and the IFC Capitalization Fund, a fund managed by IFC Asset Management Company, signed a document entitled “Note Purchase Agreement”, by which, subject to compliance of certain conditions, Banco CorpBanca Colombia will issue, and the IFC Capitalization Fund will purchase, subordinated bonds for MUS$170. Once issued, these floating rate notes will mature in 10 years.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

A total of MUS$170 (MCh$101,875 and COP$345,926) in bonds was issued on March 18, 2014. The 10-year notes accrue interest at a floating rate of LIBOR plus 4 points, with semi-annual interest payments, the first of which is due September 15, 2014 for MUS$3.

~~Net proceeds from the placement will be used to increase loans in the market and finance other general corporate objectives.~~

~~On March 31, 2014, shareholders approved amendments to articles 38, 65 and 66 of the bylaws of Helm Bank in order to change the accounting close from six months to one year.~~

Law 1314 of 2009 established the need for accounting standards for financial reporting and assurance purposes that would provide information that is understandable, transparent, relevant, reliable and useful for decision making by financial statement users, thus improving productivity, competition and harmonious development of business in Colombia and supporting globalization through convergence towards international standards.

In its strategic guidelines for 2011, the Colombian Technical Board of Public Accounting decided that the country would adopt International Financial Reporting Standards. In its opinion, these standards complied with Law 1314 of 2009, which calls for standards that are globally accepted, rely on best practices, facilitate rapid business growth and provide a single, homogenous, high-quality system with information that is understandable, transparent, comparable, pertinent, reliable, relevant, neutral and useful for decision making.

~~Decree 2784 of 2012 defined a timeline for IFRS convergence. According to this timeline, the preparation, transition and adoption periods for the CorpBanca Colombia Group was set for the years~~ 2013, 2014 and 2015 ~~respectively.~~

~~On December 23, 2014, a tax reform was published in Colombia as Law 1,739. This new law modified the tax statutes, creating mechanisms to prevent tax evasion as well as other provisions.~~

The most important modifications introduced by the Colombian tax reform include an equity tax on the taxpayer’s net worth; a normalization tax to complement the equity tax; an increase in the surtax for the fair income tax (CREE); modifications to taxation of individuals and foreign entities, among other matters.

~~It established a tax on a taxpayer’s net worth, which will be applied between 2015 and 2017 for legal entities and between 2015 and 2018 for individuals.~~

~~Normalization Tax to Complement Equity Tax~~

It established an amnesty regime for assets not included in national tax returns (that should have been) and liabilities included in tax returns (that should not have been) in order to reduce the tax burden. This amnesty will be in effect for the years 2015, 2016 and 2017 with variable rates depending on the year it is applied.

~~Fair Income Tax (CREE) Set at 9%~~

~~The CREE was set definitely at 9% for the year 2016, giving an aggregate rate for income tax and CREE of 34%.~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Rule applicable only in cases in which the minimum taxable base is greater than COP$800 million. The CREE surtax will be as follows: 5% in 2015; 6% in 2016; 8% in 2017 and 9% in 2018. This gives an aggregate rate for income tax, CREE and the surtax of 43% for 2018.

~~Rules on Taxation of Individuals, Foreign Companies and Legal Entities~~

~~Taxation of individuals: Colombians will not have tax residency if 50% or more of their annual revenue is foreign source or if 50% or more of their assets are also located abroad.~~

Foreign companies: Revenue of foreign companies not attributed to a permanent establishment are subject to special tax rates of 39% in 2015, 40% in 2016, 42% in 2017 and 43% in 2018, and then returns to 34% for 2019 and beyond.

Legal entities: Effective management headquarters of foreign companies are set when they issue bonds or equities on the Colombian Stock Exchange or have more than 80% of their revenue in the jurisdiction where they were formed.

~~Gradual Reduction of Financial Movement Tax (GMF)~~

~~The rate of 0.004 is maintained until 2018. After that, it will be reduced to 0.003 in 2019, 0.002 in 2020 and 0.001 in 2021 and then disappear altogether in 2022.~~

~~Incorporation of Sales Tax Discounts~~

~~It creates a credit for acquiring or importing capital assets taxed with VAT.~~

It reduced penalties and interest rates in certain cases of customs and foreign exchange-related tax controversies or in cases in which certain administrative actions may be challenged by the taxpayer. It also established discounts for taxpayers with pending tax obligations from 2012 or prior years.

~~Other Modifications~~

~~It created a commission to study aspects related to combating tax evasion and avoidance.~~

~~It excludes legal entities from applying the simplified regime for the national tax on consumption in restaurants and bars.~~

~~It modified some rules on statutes of limitations for tax debt collections and remissions.~~

~~It ordered 70% of the revenue from stamp tax to be allocated to social investments through tourism authorities.~~

On July 25, 2014, via Ruling No. 2014054394-010-000 (notified by the Financial Superintendence of Colombia), Mr. Juan José Huerta Quiñones, in his role as Legal Representative of CorpBanca Investment Valores Colombia S.A. Comisionista de Bolsa was notified the general authorization for the execution of correspondent.

On August 12, 2014, via Resolution No. 1383 (notified by the Financial Superintendence of Colombia), Mr. Juan José Huerta Quiñones, in his role as Legal Representative of Helm Comisionista de Bolsa S.A. and CorpBanca Investment Valores Colombia S.A. Comisionista de Bolsa was notified that there were no objections to the Merger by absorption of Helm Comisionista de Bolsa S.A. by CorpBanca Valores Colombia S.A. Comisionista de Bolsa.

On August 12, 2014, the Colombia Financial Superintendency, via ruling 1,383, declared that it had no objection to the merger of CIVAL and Helm Comisionista, both subsidiaries of Banco CorpBanca Colombia. On August 22, 2014, the shareholders of Helm Comisionista and CorpBanca Investment Valores, approved the merger commitment between CorpBanca Investment Valores, as the absorbing entity, and Helm Comisionista, as the absorbed entity.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The legal, operational and technological merger of CIVAL (CorpBanca Investment Valores) and Helm Comisionista de Bolsa S.A, which are part of the CorpBanca Group, took place on September 1, 2014. The merged brokerage firm will maintain the taxpayer ID number of CIVAL and the name of Helm Comisionista de Bolsa. It will also maintain the complete portfolio of products and services offered by the two firms.

On July 29, 2013, there was a change in this bank’s ownership as a result of the acquisition of the shares of its parent company (Helm Bank). Cayman Island monetary authorities approved the changed in ownership subject to compliance of the following conditions:

~~Immediate Voluntary Liquidation of the Bank~~

~~Delivery of category B operational liquidation in the Bank’s possession in December 2013.~~

In the general meeting of shareholders of Helm Bank Cayman on August 5, 2013, the bank’s shareholders approved a voluntary liquidation plan for Helm Bank Cayman and appointed Alexander Lawson and Keith Balke from KPMG as liquidators. The assets of Helm Bank Cayman and its customers’ deposits were transferred to other entities within the Helm Group. This process was completed on June 26, 2014, with a bank draft from Helm Cayman for US$24,606,191.57.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The segment information is disclosed by the Bank based on its operating segments, which differ primarily in the risks and returns that affect them.

The criteria used to report to the Chief Operating Decision Maker (CODM) areoperating segments in accordance with IFRS 8,Operating Segments. The CODM reviews the discrete financial information on the basis of gross operational margin (Total operating income, net of provision for loan losses, interest and fees) and only uses average balances (assets and liabilities) to evaluate performance and allocate resources.

The Bank’s business activities are primarily conducted in the domestic market. The seven operating segments are:

The Bank manages these operating segments using an internal profitability reporting system.

The Bank has also included entity-wide disclosures on its operations in New York, and those in Colombia through the acquisition of Banco CorpBanca Colombia and its subsidiaries, as detailed above.

The Bank did not enter into transactions with a particular customer or third party that exceed 10% of its total income in ~~2012,~~ 2013, 2014 and ~~2014.~~2015.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

When revenue from external customers attributed to a particular foreign country is significant, it is disclosed separately.

Colombia has been identified as a separate operating segment based on the business activities described above; that their operating results are regularly reviewed by the CODM which results form the basis for decisions about allocated resources and assessments of performance; and discrete financial information is available.

The revenue from external customers (revenues are attributed to countries on the basis of the customer’s location) that come from the three geographic areas are the following:

Non current assets and others that are allocated correspond to the three geographic areas are the following:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~Non current assets and others that correspond to the three geographic areas are the following:~~

The accounting policies of segments are the same as those described in the summary of accounting policies. The Bank earns most of its income in the form of interest income, fee and commission income and income from financial operations.

~~(*) This includes goodwill generated in business combinations by operations in Colombia (Colombia segment) totaling MCh$ 386.180 (MCh$ 420,623 in 2013). For more information, see Note 12~~~~Investment in other companies~~~~to these consolidated financial statements.~~

Hence, this disclosure furnishes information on how the Bank is managed as of December 31, ~~2013~~2014 and ~~2014.~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~(**) Assets unallocated to any operating segment correspond to the following:~~

~~(***) Liabilities unallocated to any operating segment correspond to the following:~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The detail of the balances included under cash and cash equivalents is as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Cash in the process of collection is short-term, amounts in transit of collection.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The detail of the financial instruments classified as trading financial assets is as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

b)The Bank obtains funds by selling financial instruments and committing itself to buy them back at future dates, plus interest at a fixed rate.

As of December 31, ~~2013~~2014 and ~~2014~~2015 obligations under repurchase agreements are the following:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~A. As of December 31, 2013 and 2014, the Bank holds the following portfolio of derivative financial instruments:~~

A.3) As of December 31, 2014 and 2015, the portfolio of derivative financial instruments for account hedging and for trading purposes are as follow:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The Bank uses interest rate derivatives to reduce the risk on certain items designated as hedged items, for example, long-and-short term debt issuances and assets such as commercial loans.

The Bank uses cross-currency swaps and interest rate swaps to hedge its exposure to changes in fair value of hedged items attributable to interest rates. The aforementioned hedging instruments change the effective cost of long-term issuances from a fixed interest rate to a variable interest rate.

Below is a detail by maturity of hedged items and hedging instruments as of December 31, ~~2013~~2014 and ~~2014,~~2015, under fair value hedges.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Below is a detailed account of hedged items and hedging instruments by maturity as of December 31, ~~2013~~2014 and ~~2014,~~2015, under cash flow hedges.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The effective portion of increase/decrease in fair value of the hedging instruments of the hedged items from cash flow hedges, MCh$3,088 (MCh$958 ~~(MCh$(5,187)~~ as of December 31, ~~2013)~~2014) (Note 23g)~~Shareholders~~ Equity) and the ineffective portion of increase/decrease in fair value of the hedging instruments of the hedged items from cash flow hedges are, respectively, MCh$(15) (MCh$5 ~~(MCh$51~~ as of December 31, ~~2013)~~2014) (Note 27Net Foreign Exchange Income (losses) – Fair value gains (losses) on hedging derivatives), as of December 31, ~~2014~~2015 and ~~2013,~~2014, respectively, were as follow with respect to the following hedged items:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The Bank has a foreign operation (New York ~~Branch)~~Branch and Colombia) whose functional currency (US ~~dollars)~~dollars and Colombian pesos) is other than the Bank’s functional currency. When translating the results of operations and financial position of this foreign operation into the Bank’s ~~presentation~~functional currency, the Bank recognizes foreign exchange differences in other comprehensive income until it disposes of the foreign operation. For this reason, the Bank decided to hedge the foreign currency risk arising from its net investment in this foreign operation and has designated non-derivative financial instruments as hedging instruments. Gains or losses relating to the effective portion of the hedge are recognized in other comprehensive income and accumulated under the heading hedge of a net investment in foreign operation within equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Gains or losses on the hedging instrument relating to the effective portion accumulated in equity are reclassified to profit or loss on the disposal of the foreign operation.

Gains or losses on the hedge of the net investment in its foreign operation that have been recognized in other comprehensive income and accumulated in equity are as follows:

No ineffective portion was recognized in profit or loss for the years ended December 31, ~~2013~~2014 and ~~2014.~~2015.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and 2015

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

~~a) As of December 31, 2013 and 2014, loans and receivables from banks are as follows:~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~As of December 31, 2013 and 2014, the composition of the loan portfolio is as follows:~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2014 and 2015, the composition of the loan portfolio is as follows:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Guarantees taken by the Bank to secure collections ~~of rights~~ 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, ~~2014~~2015 and ~~2013,~~2014, the fair value of guarantees taken corresponds to ~~83.4%~~89.9% and ~~80.9%~~83.4% of the loans and receivables, respectively.

In the case of mortgage guarantees, as of December 31, ~~2014~~2015 and ~~2013,~~2014, the fair value of the guarantees taken corresponds to ~~51.1%~~59.5% and ~~50.0%~~51.1% 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, ~~2014,~~2015, MCh$~~393,254~~155,332 corresponds to leases of movable assets (MCh$~~152,193~~393,254 as of December 31, ~~2013)~~2014) and MCh$~~742,600~~237,272 to leases of real estate assets (MCh$~~179,552~~742,600 as of December 31, ~~2013)~~2014).

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

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 ~~on going~~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 ~~2014,~~2015, the Bank has received assets such as homes, apartments, commercial and agricultural lands, among others, with a fair value of MCh$986 (MCh$3,550 ~~(MCh$1,785~~ in ~~2013)~~2014) through foreclosure or judicial proceedings.

As of December 31, ~~2013~~2014 and ~~2014,~~2015, the loan portfolio before allowances for loan losses by customer economic activity was as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The changes in allowances for loan losses during the periods ended December 31, ~~2013~~2014 and ~~2014~~2015 are summarized as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

During ~~2013~~2014 and ~~2014,~~2015, CorpBanca sold part of its portfolio of state-guaranteed loans and receivables (CAE for its 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, allow selling a percentage of the state-guaranteed loans and receivables to third parties. On the portfolio sale, CorpBanca transferred substantially all the risks and benefits associated with this portfolio. The detail of loans and receivables sold is as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The ~~maturity of~~Bank’s scheduled cash flows to be received from finance ~~leases as of December 31, 2013 and 2014, is detailed as follows:~~lease contracts have the following maturities:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, ~~2013~~2014 and ~~2014,~~2015, the detail of financial investments available for sale and held to maturity was as follows:

As of December 31, ~~2014,~~2015, the portfolio of financial investments available-for-sale includes net unrealized losses and gains, net of taxes, recorded in other comprehensive income.

~~As of December 31, 2013 and 2014, there are no significant or prolonged declines in value.~~

All investments quoted in non-active markets and classified as available-for-sale have been recorded at their fair value.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2014, the portfolio of financial assets available for sale includes a net unrealized loss of MCh$11,605, recorded inOther Comprehensive Income within equity (Note 23Equity,letter f).

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2015, the portfolio of financial assets available for sale includes a net unrealized loss of MCh$55,325, recorded inOther Comprehensive Incomewithin equity (Note 23Equity,letter g).

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

During as of December 31, 2013, 2014 and 2015, the Bank received dividends from its investment in other companies as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, ~~and 2014~~

~~During as of December 31, 2012, 2013 and 2014, the Bank received dividends from its investment in other companies as follows:~~

~~As of December 31, 2013 and~~ 2014 and ~~for the years ended December 31, 2012, 2013 and 2014~~2015

The movements of investment in other companies as of December 31, ~~2013~~2014 and ~~2014~~2015 were the following:

During 2015 there were no mergers and acquisitions. The following information is provided to supplement with respect to intangible assets, impairment, etc.

On July 4, 2013, the Chilean Central Bank (BCCH in Spanish) authorized CorpBanca to make an investment abroad consisting of the acquisition through its subsidiary Banco CorpBanca Colombia S.A. (domiciled in Bogota, Colombia, the “Acquirer”) of up to 100% of Helm Bank S.A., including its subsidiaries in Colombia, which provide complementary services through the subsidiaries Helm Comisionista and Helm Fiduciaria, Panama and the Cayman Islands (the “Acquirees”), with the purpose of subsequently merging both banks incorporated in Colombia; and for CorpBanca Chile (“the Buyer”) to directly acquire up to 80% of the shares of Helm Corredores de Seguros S.A., (“the Acquiree”, domiciled in Colombia). In terms of the subsidiaries owned by Helm Bank S.A in Panama and the Cayman Islands, BCCH did not directly authorize CorpBanca Chile to invest in them. It resulted as a necessary consequence of the acquisition of their parent company Helm Bank S.A. under the terms authorized by the SBIF. The SBIF established for CorpBanca Chile the obligation to liquidate the operations of the subsidiary incorporated in the Cayman Islands once it took control of the parent company in the shortest time possible and under the terms and conditions set forth in the relevant SBIF ruling.

As a result, CorpBanca Colombia committed to acquire the voting and non-voting shares of Helm Bank S.A. and subsidiaries. As part of the agreement, CorpBanca Colombia committed to acquiring up to 100% of the preferential dividend and non-voting shares (preferential shares).

It acquired, for merger purposes, 2,387,387,295 common shares, which represent 58.89% of the outstanding common shares (51.61% of subscribed and paid capital) of Helm Bank during the first close and 1,656,579,084 common shares, which represent 40.86% of the outstanding common shares (35.81% of subscribed and paid capital) of Helm Bank during the second close for a total of 4,043,966,379 common shares, which represent 99.75% of the total outstanding common shares and 87.42% of the subscribed and paid capital of Helm Bank, for purchases made on August 6 and 29, 2013.

On January 28, 2014, CorpBanca Colombia honored that commitment, carrying out a voluntary Takeover Bid (TOB) for the preferential shares as part of the third close, which was mainly designed to offer a liquidity and sales mechanism to the preferential shareholders under the same economic conditions that were agreed upon for the sellers of the common shares of Helm Bank under the SPA and to facilitate the merger process, enabling CorpBanca Colombia and its subsidiaries to expand their presence in the medium and long term as loan establishments in the Colombian market, obtaining a 12.36% interest and therefore retaining a total interest of 99.78% of subscribed and paid ~~capital .~~capital.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

As explicitly legally required, CorpBanca Colombia and Helm Bank had to merge within the year following the date of the first acquisition of shares of Helm Bank (i.e. before August 6, 2014).

On July 1, 2014, the merger between CorpBanca Colombia S.A., as the surviving entity, and Helm Bank S.A., as the absorbed entity, was formalized. As a result, Helm Bank S.A. is dissolved without being liquidated and all of its assets, rights and obligations are transferred fully to the absorbing entity.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

After receiving the necessary regulatory authorizations from regulators in Chile, Colombia, Panama and the Cayman Islands, the Bank took control of Helm Bank and subsidiaries through its subsidiary Banco CorpBanca Colombia. With the recent acquisition of Helm Bank and its subsequent merger with CorpBanca Colombia, CorpBanca Chile has consolidated its operations in Colombia, reaffirming its long-term commitment to this market.

For CorpBanca Chile, the Colombian market has great potential and significant room for growth in the banking business. Many Chilean investors have invested in Colombia and the Bank aims to assist customers with these projects, to strengthen long-term relationships with people and companies in that country, and also to provide peace of mind to our shareholders and investors by diversifying risks and earnings sources.

~~This had no impact on the Consolidated Statements of Income for the period 2013.~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

This had no impact on the Consolidated Statements of Income for the period 2013.

3.1 Fair Value of the Identifiable Assets and Liabilities of Helm Bank and Subsidiaries as of the Date of Acquisition (August 6, 2013):

Voting rights in proportion to its interest in the companies.

The right to name or remove key members of management or others of the investees that have the ability to direct relevant activities.

The right to direct the activities of investees for the benefit of the bank.

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Fair value of the consideration transferred;

The fair value of any non-controlling interest in the acquiree, plus

If the business combination is performed in stages (not the case for our purposes), the fair value of the existing interests in the equity of the acquiree;

Less the net amount recognized (generally the fair value) of the identifiable assets acquired and the identifiable liabilities assumed.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

b.2) Business Combination – Banco CorpBanca Chile and Helm Corredor de Seguros S.A.

As part of the transaction with Helm, Banco CorpBanca Chile, domiciled in Chile, acquired 80.00% of the shares with voting rights of Helm Corredor de Seguros ~~S.A. (HCS).~~S.A.. This company, created January 16, 1985, is engaged in brokering insurance, under the supervision of the Colombian Financial Superintendency. It is domiciled in Bogota. This entity was common controlled by the same party as Helm Bank S.A. prior to its acquisition by the Bank.

With this acquisition, CorpBanca sought to expand regionally and simultaneously participate in the growing Colombian banking market as a complementary business whose potential is based on the sound economic prospects of that country.

The fair value of the identifiable assets and liabilities of Helm Corredores de Seguros S.A. as of the date of acquisition (August 6, 2013) was as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The same criteria described for the business combination between CorpBanca Colombia and subsidiaries and Helm Bank and subsidiaries in sections c.1, c.2 and 3.3 letters a), b), c), d), i), j), k), l) and o) were used for this transaction. No adjustments were made during the measurement period.

As of the acquisition date, no contingent liabilities were determined.

Since the acquisition date, during the 2013 period HCS contributed MCh$ 29 to net interest income, MCh$ 3,081 to net fees and commissions, MCh$ 3,111 to net operating income and MCh$ 901 to before tax profit for the period. If the combination had occurred at the beginning of the period (January 1, 2013), net interest and adjustment income of Banco CorpBanca Chile would have been MCh$ 457,716 and before tax profit for the period would have been MCh$ 232,600 (these amounts do not include the effects of the business combination with Helm and subsidiaries). In determining these amounts, management has assumed that the provisional fair value adjustments originated on the date of acquisition would have been the same had the acquisition occurred on January 1, 2013.

The goodwill of MCh$ 6,171 recognized as of the date of acquisition was attributed to expected synergies and other benefits arising from the combination of the assets and activities of HCS. Goodwill was not expected to be tax deductible.

Goodwill is tested annually to determine whether impairment exists (as of December 31, of each year) and when circumstances indicate that its carrying amount may be impaired. This impairment is determined by evaluating the recoverable amount of each cash generating unit (or group of cash generating units) to which goodwill is allocated. Where the recoverable amount of the cash generating unit is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

The following table reconciles the carrying amount of goodwill at the beginning and end of the period:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

b) The movement of intangible assets in the period ended December 31, ~~2013~~2014 and ~~2014~~2015 is as follows:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

c) Movements of accumulated amortization of intangible assets as of December 31, 2015 and 2014 are detailed as follows:

d) As of December 31, ~~2013~~2014 and ~~2014,~~2015, the Bank has entered into the following contractual commitments for the acquisition of intangible assets:

At each reporting date, Banco CorpBanca will evaluate whether there is any indication of impairment of any asset. Should any such indication exist, or when impairment testing is required, the entity will estimate the asset’s recoverable amount.

The entity will conduct impairment testing on an annual basis for intangible assets with indefinite useful lives as well as intangible assets that are not yet available for use, by comparing their carrying amount with their recoverable amount. Impairment testing can be carried out at any time during the year, as long as it takes place at the same time each year. Impairment testing of different intangible assets can take place on different dates. However, if that intangible asset had been recognized initially during the current year, it will be tested for impairment before the year ends.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Impairment of goodwill is determined by evaluating the recoverable amount of each cash generating unit (or group) to which goodwill is allocated. Where the recoverable amount of the cash generating unit is less than its carrying amount, an impairment loss is recognized; goodwill acquired in a business combination shall be distributed as of the acquisition date among the CGUs or group of CGUs of the acquirer that are expected to benefit from the synergies of the business combination, regardless of whether other of the acquiree’s assets or liabilities are allocated to these units. Impairment losses relating to goodwill cannot be reversed in future periods.

In accordance with IAS 36 ~~“Impairment~~“Impairment of Assets”, annual impairment testing is permitted for a CGU to which goodwill has been allocated, or ~~at any time~~ for intangible assets with indefinite useful lives, at any time as long as they are carried out at the same time each year. Different cash generating units and different intangible assets can be tested for impairment at different times during the year.

CorpBanca and subsidiaries conducted impairment testing for unamortized assets, including intangible assets that are still not in use, and concluded that no impairment exists.

Intangible assets with indefinite useful life (license, trademark and database) arising from business combinations made by the Bank, were determined by evaluating the factors described in International Financial Reporting Standards highlighting the following:

Intended use of the particular asset, by the Bank, and whether (the) item (s) could (n) be managed efficiently by another management team.

The product life-cycle, as well as public information on estimates of useful lives of similar assets that are used when therefore similar view of their nature.

Expected performance of main competitors to the industry or market, whether actual or potential.

Ability and willingness of the Bank to achieve the levels of maintenance expenditure required to obtain the expected economic benefits of the asset.

Incidence of technical technological or commercial obsolescence or that otherwise applicable to the industry or market.

Period in which the asset is controlled, if it were limited, and the limits, legal or otherwise, regarding the use of the element.

Evaluation of the dependence of the useful life of certain assets over the useful life of other assets of the Bank.

The factors described are then used to perform the impairment tests carried out in accordance with IAS 36Impairment of Assets to unamortized intangible assets, see Note 31Depreciation, Amortization and Impairment, letter b)Impairment.

g) As of December 31, ~~2013~~2014 and ~~2014,~~2015, the Bank and its subsidiaries have no restrictions on intangible assets. In addition, no intangible assets have been given in guarantee for compliance of any obligations. There are also no amounts owed by the Bank on intangible assets as of the aforementioned dates.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The useful lives presented herein are those of the Bank’s building, equipment, and other property, plant, and equipment as of the transition date to IFRS (January 1, 2009). The useful lives presented in Note 1 m) are all of the useful lives of the Bank’s property, plant, and equipment. Such useful lives have been determined based on our expected use considering the quality of the original construction, the environment in which the assets are located, the quality and degree of maintenance carried out, and appraisals performed by external specialists who are independent of the Bank which have been taken into consideration by management to determine the useful lives of our buildings.

b)~~The movement of property, plant and equipment for the periods ended December 31, 2013 and 2014:~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

f)As of December 31, 2014 and 2015, the Bank and its subsidiaries have no restrictions on property, plant and equipment. In addition, no property, plant and equipment have been given in guarantee for compliance of any obligations. There are also no amounts owed by the Bank on property, plant and equipment as of the aforementioned dates.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

At the end of each year the bank recognizes an Income Tax Provision, which is determined based on the currently enacted tax legislation. Current recoverable taxes recognized as of December 31, ~~2014~~2015 was MCh$~~1,608 (taxes~~4,447 (current recoverable taxes payable MCh$~~45,158~~1,608 as of December 31, ~~2013)~~2014). The income tax provision (net of recoverable taxes) is as follows:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The tax expense for the years ended December 31, 2013, 2014 and ~~2013~~2015 is comprised of the following items:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The following table reconciles the income tax rate to the effective rate applied to determine the Bank’s income tax expense as of December 31, ~~2014~~2015 and ~~2013.~~2014.

The nominal tax rates of the countries where consolidated subsidiaries are located are:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

In September 2014, Law 20,780 was published in the Official Gazette. The law modifies the income tax system in order to increase revenue collection to finance education reform, make taxation more equitable and improve the current tax system.

One of the most important changes introduced by the tax reform is the creation of two separate taxation systems in the Income Tax Law: the “attributed income” system and the “semi-integrated” system. This law also called for a gradual increase in the corporate income tax rate from 20% in 2013 to:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Beginning in 2017, the applicable tax rate will depend on the tax system chosen. Taxpayers choosing the “Attributed Income” system will have a final rate of 25% while those choosing the “Semi-Integrated” system will have a transitory rate of 25.5% in 2017 and a final rate of 27% in 2018 and beyond.

The impact of this rate change on deferred taxes resulted in a credit to profit for the period of MCh$~~369.~~9.373 (MCh$369 in 2014).

~~(2) In December 2014, Law 1,739 was published in Colombia. This new law modified both the Tax Statutes and Law 1,607 and also created mechanisms to prevent tax evasion.~~

Among the more important modifications introduced by the Colombian tax reform were a gradual and transitory increase in income taxes between 2015 and 2018. This modification will raise the income tax rate in Colombia from 34%, in effect for commercial year 2014, to:

The impact of this rate change on deferred taxes resulted in a charge to profit for the period of MCh$~~890~~135 (credit of MCh$82890 in ~~2013~~2014 for the effect of the tax reform in Law ~~1,607~~1,739 on December ~~26, 2012)~~23, 2014).

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The table below sets for a summary of the deferred tax effect on other comprehensive income for the periods ended December 31, ~~2013~~2014 and ~~2014,~~2015, which consists of the following items:

i) Tax effect of “OCI” that may be reclassified to profit in subsequent periods:

Below are the effects of deferred taxes on assets and liabilities assigned as a result of temporary differences (by geographic area):

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~Below are the effects of deferred taxes on assets, liabilities assigned as a result of timing differences:~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

b) The change due to received assets in lieu of payment during 2014 and 2015 is as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~17—~~17 - CURRENT ACCOUNTS, DEMAND DEPOSITS, TIME DEPOSITS AND SAVING ACCOUNTS

a)As of December 31, 2014 and 2015 “Current accounts and demand deposits” consist of the following:

b)As of December 31, 2014 and 2015 “Time deposits and saving accounts” consist of the following:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, ~~2013~~2014 and ~~2014,~~2015, borrowings from financial institutions include the following:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, ~~2013~~2014 and ~~2014~~2015 the Bank has recorded the following provisions and changes in its provisions:

This item includes the following provisions related to: i) provisions for staff benefits and payroll, ii) provisions for compensation for years of service indemnities, iii) provisions for other employee benefits and iv) provisions for vacations.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~Employee benefits and staff salaries are recorded in “Personnel salaries expenses.”~~

~~Mandatory dividends are recorded in the Shareholders Equity Statement, against “Accrual for mandatory dividends”.~~

~~The contingency provisions/(releases) are included in Other Operating (Expenses)/Income, depending on whether they are debit or a credit.~~

~~The provisión balance changes during 2013 and 2014, shown below (contingencies):~~

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~(1)~~~~It includes long-term~~i) Long-term employee benefits and other employee benefits relating to Helm Bank, which benefits during 2014 were modified to conform to human resource policies of CorpBanca Colombia by legal merger (wich occurred as of June 1, 2014).

The Bank’s employees are entitled to receive years of service awards starting with the 5th year employment anniversary and each five years thereafter. This award is paid in the month when the employee celebrates his/her corresponding employment anniversary.

The main assumptions used in the valuation are presented in the following tables:

To determine the cost of benefits, the method of the projected unit credit was used (to be described, as well as treatment costs).

For fiscal year ~~2014,~~2015, it is assumed that the nominal discount rate increases from ~~5.75%~~6.50% to ~~6.50%~~6.75% annual. ~~Additionally, the rate of wage changes of 5.0% increases to 5.5% annual.~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The movements in the present value of the defined benefit obligation and the amounts recognized in the statement of income in respect of this award are determined using the projected unit credit method and consisted of the following:

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The retirement pension liability is recorded based on the present value of the pension obligation for employees who meet certain statutory requirements as to age, length of service and other, determined in accordance with actuarial adjustments under the existing Colombian law.

The present value of the defined benefit obligation was measured using the Projected Unit Credit Method and Other long-term employee benefits.

The principal assumptions used in the valuation are presented in the following tables:

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

To determine the cost of benefits, the method of the Projected Unit Credit (PUC) was used, according to the provisions of IAS 19 (revised 2011). Under the PUC method, the “projected accrued benefit” is calculated for each benefit. For all active members of the plan, the “projected accrued benefit” is based on the formula of the Plan and the years of service to the date of calculation, but using a salary average, social security benefits and others, projected to the age at which it is assumed that the employee will no longer provide services. The defined benefit obligation is the present value of the “projected benefits accrued”.

The service cost is the amount of benefits earned in the year by the active members as a result of a year of credited service value.

The interest cost for the year is the interest on the defined benefit obligation.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The benefit is equivalent to one month’s salary, adjusted for the application of severance factor (defined as the sum of 12 basic salaries plus additional payments does not constitute salary) per year of service and corresponding fraction.

The main assumptions used in the ~~income statement~~valuation are presented in the following tables:

To determine the cost of benefits, the method of the projected unit credit (PUC) was used.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

This plan corresponds to the payment of a fixed amount in pesos at the time of retirement of the employee.

The main assumptions used in the valuation are presented in the following tables:

To determine the cost of benefits, the method of the projected unit credit (PUC) was used.

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Future actuarial calculations may differ with respect to the calculations presented, due to the following factors:

The experience of the plans differ from those anticipated by economic and demographic hypotheses selected.

Changes in economic and demographic assumptions.

Increases or decreases expected as a natural part of the operation of the methodology for these calculations (example, the end of the amortization period or additional costs based on the funding status of the plan).

Changes in the characteristics of the plan or applicable law, and ~~according to the above,~~with respect thereto, there are no significant events affecting the results presented since the last valuation.

The average duration of the obligation for these plans is: 13.2 years (long term employee benefits); 14.9 years (Pension Plans); 6.2 years (Severance) and 12.9 years (Retirement benefit plan)

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, ~~2013~~2014 and ~~2014~~2015 other liabilities are as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The Bank, its subsidiaries and its New York branch maintain off-balance sheet accounts as follows:

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of the date of issuance of these financial statements, there are lawsuits pending against the Bank related to loans and other matters, most of which, according to the Bank’s Legal Services Division, present no risk of significant loss. Nevertheless, as of December 31, ~~2014,~~2015, it has not recorded provisions ~~of MCh$~~(MCh$207 ~~(MCh$239~~ as of December 31, ~~2013)~~2014) in compliance with IAS ~~37.~~37 (included in “Allowances for contingencies”, Note 20Provisions, letter a)).

According to the Bank’s Legal Services Division, as of December 31, ~~2013~~2014 and ~~2014,~~2015, this company does not have any pending lawsuits that represent a risk of significant loss for the Bank. However, the company has initiated and/or is party to the following lawsuits and/or collections proceedings that could result in a loss for the Bank:

As of December 31, ~~2014,~~2015, the subsidiary had MCh$201 (MCh$212 as of December 31, 2014) in doubtful accounts related to customer management. In the opinion of the Bank’s general counsel, not recovering the amounts owed could result in a loss for the Bank. Therefore, the subsidiary has recorded a provision of MCh$195 (MCh$212 as of December 31, 2014) in its financial ~~statements.~~statements (recorded within “Other assets”).

Before the 5th Criminal Court of Santiago, in fraud case No. 149913-7, as part of a criminal suit filed by Banco del Estado de Chile, to which CorpBanca Corredores de Bolsa S.A. is not party, the court seized (in the Company’s opinion, improperly) Time Deposit No. 00243145 for MCh$43 (historical pesos) that Concepción S.A. Corredores de Bolsa, now CorpBanca Corredores de Bolsa S.A., had acquired from its initial beneficiary, because it was consideredcorpus delicti. This time deposit is fully provisioned in the Company’s financial statements and is presented net of the provision in notes and accounts ~~receivable.~~receivable (recorded within “Other assets”).

On ~~April 15,~~August 21, 2013, ~~the Company was notified of a lawsuit brought by José Hernán~~Jose Hernan Romero Salinas, ~~against CorpBanca~~sued to Corpbanca Administradora General de Fondos ~~S.A. filed~~SA for absolute nullity of various subscription contracts Mutual Fund contributions made by him, plus restitution of the value thereof, loss of earnings, moral damages and costs, totaling MCh$662.-

Such judgment “Romero Salinas with Corpbanca Administradora General de Fondos SA”, was presented in the ~~12th~~9th Civil Court of Santiago, ~~Case~~with Rol No. ~~C-17811-2012, seeking compensation for damages due to an alleged breach~~9302-2013.

Regarding the conduct of ~~contractual liability. Compensation sought amounts to MCh$138. On March 6,~~the trial we note the following milestones:

By judicial sentence dated December 1, 2014, the ~~court ruled that the proceedings had been abandoned. This ruling became final on March 21, 2014. Therefore, this case is currently closed.~~

~~On September 26, 2013, the Company was notified of a lawsuit brought by José Hernán Romero Salinas against CorpBanca Administradora General de Fondos S.A. filed with the 12th~~9th Civil Court of Santiago, ~~Case No. C-9302-2013. The lawsuit petitions~~partially upheld the court to render null and void four mutual fund investment agreements. As a result of the annulment, the plaintiff is requesting that the subsidiary be sentenced to /i/ return all funds invested in the four mutual fund investment agreements; /ii/ pay for lost profits valued at MCh$100, which is equivalent to the money that the plaintiff would have invested in fixed income mutual fund units as of the date of filing the lawsuit; and /iii/ pay the plaintiff the sum of MCh$50 for moral damages.complaint filed by Mr. Romero.

On ~~December 1, 2014,~~January 6, 2015, the ~~first instance ruling was issued, partially accepting the lawsuit by declaring the agreements null~~Society appealed cassation and ~~void and ordering the subsidiary~~appeals with respect to ~~refund the sum of MCh$513 for the money handed over to invest. The ruling rejected the petition for lost profits and moral damages filed by the plaintiff.~~

~~Management has estimated and provisioned a probable loss of MCh$9,928~~such failure.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

On April 28, 2015, the Third Chamber of the Court of Appeals of Santiago accepted the appeal and overturned the lower court ruling, rejecting the demand in all its parts, with costs.

Regarding the decision dated April 28, 2015, the complainant Mr. Romero appealed cassation on the merits, which was granted on 4 June 2015. However, the complainant filed an incident for clarification, correction or amendment, which he was rejected, and not having allocated funds for the preparation of the respective attest copies, as provided by Articles 197 and 776 of the Code of Civil Procedure, the Court of Appeals of Santiago declared void his appeal in the background, with dated June 25, 2015.

On September 10, 2015, counsel for the Administrator argued before the First Chamber of the Hon. Supreme Court, requesting its dismissal, taking account of their inadmissibility. On the same date, accepting our request, the ministers of the Hon. Supreme Court unanimously rejected, with costs, the appeal made reference (Role 10226-2015).

Finally, on September 15, 2015 the day, the 9th Civil Court of Santiago ordered be it done in the judgment of the Court of Appeals of Santiago, on April 18, 2015, which, as noted above, overturned the first instance ruling and “rejected” the demand in all its parts, with costs, which ended this trial. Obtaining a favorable outcome for Corpbanca widely Administradora General de Fondos, since it was ultimately rejected in its entirety the abovementioned demand.

As of the date of issuance of these financial statements, there are lawsuits pending against the Bank related to loans and other matters, most of which, according to the Bank’s Legal Services Division, present no risk of significant loss. Nevertheless, as of December 31, ~~2014,~~2015, it has recorded provisions of MCh$2,088 (MCh$3,642 ~~(MCh$2,209~~ as of December 31, ~~2013)~~2014) in compliance with IAS 37.

As of December, ~~2014~~2015 and ~~2013,~~2014, the following companies do not have any pending lawsuits that represent a risk of significant loss for the Bank:

CorpBanca Asesorías Financieras S.A.

CorpBanca Corredores de Seguros S.A.

CorpBanca New York Branch

CorpBanca Investment Trust Colombia S.A.

CorpBanca Securities Inc.

Recaudaciones y Cobranzas S.A.

Helm Corredores de Seguros S.A.

Helm Comisionista de Bolsa S.A.

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~e) Guarantees~~The following table details the Bank’s contractual obligations:

Direct commitments - As of December 31, ~~2013~~2014 and ~~2014,~~2015, the Company does not have any direct commitments.

~~Real~~ Guarantees in Assets Established in Favor of Third-Party Obligations

With the exception of guarantees that must be established in the normal course of business for legal or regulatory purposes, as of December 31, ~~2013~~2014 and ~~2014,~~2015, the Company does not have any ~~real~~ guarantees involving Bank assets established in favor of third parties.

~~Personal guarantees~~ -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Personal guarantees -As of December 31, 2014 and 2015 and, the Company has not granted any personal guarantees.

Operating guarantees - - In compliance with articles 30 and 31 of Law No. 18,045 (Securities Market Law), the Company has established a guarantee of UF 4,000 maturing April 22, 2016, through Compañía de Seguros de Crédito Continental S.A., designating the Santiago Stock Exchange as the creditors’ representative.

On ~~October 29, 2013, an employee fidelity insurance policy with MUS$10 in coverage was purchased from ORION SEGUROS GENERALES, expiring October 29, 2014.~~

On November 29, 2014, an employee fidelity insurance policy with MUS$10 in coverage was purchased from ORION SEGUROS GENERALES, expiring November 28, 2015.

On November 28, 2015, an employee fidelity insurance policy with MUS$10 in coverage was purchased from ORION SEGUROS GENERALES, expiring December 29, 2015.

On December 29, 2015, an employee fidelity insurance policy with MUS$10 in coverage was purchased from ORION SEGUROS GENERALES, expiring December 29, 2016.

This subsidiary maintains shares in the stock exchanges to guarantee simultaneous operations for MCh$10,497 (MCh$13,347 ~~(MCh$10,888~~ in December ~~2013)~~2014).

The Bank has established guarantees for MUS$100, equivalent to MCh$71, and MUS$30, equivalent to MCh$21, (MUS$100, equivalent to MCh$61, and MUS$30, equivalent to MCh$18, ~~(MUS$100, equivalent to MCh$53, and MUS$30, equivalent to MCh$16,~~ in December ~~2013)~~2014), to guarantee transactions with foreign traders Pershing and Corp FX, respectively. The latter is a Chilean company engaged primarily in purchasing and selling financial assets on its own or on behalf of third parties and, in general, carrying out any type of purchase and sale transaction, arbitrage and/or any transaction or operation involving any monetary and/or financial assets, expressly including derivative contracts (swaps, forwards, options and/or arbitrage) for any type of underlying asset, in addition to receiving guarantees for the contracts and operations mentioned above, and accepting any type of mandate for these transactions involving any type of asset over which these guarantees are established.

The Company has fixed income instruments and cash deposits in the Santiago Stock Exchange to guarantee transactions in the Securities Settlement and Clearing House that totaled MCh$6,015 and MCh$0, respectively (MCh$3,878 and MCh$795 ~~respectively (MCh$2,766 and MCh$1,378~~ in December ~~2013,~~2014, respectively).

e. 3) CorpBanca Administradora General de Fondos

Direct commitments - As of December 31, 2014 and 2015, the Company does not have any direct commitments.

Guarantees Established in Favor of Third-Party Obligations

On December 29, 2015, CorpBanca Administradora General de Fondos SA signed the Global Policy Bank (Bankers Blanket Bond) with ORION SEGUROS GENERALES, in order to anticipate possible situations of officer infidelity, with maturity on December 29, 2016. The insured amount of the policy amounted to MMUS$5, for each and every individual event and loss of MMUS$10 in the annual aggregate.

On November 29, 2015, CorpBanca Administradora General de Fondos SA extended the maturity of the insurance policy that the Company has with ORION SEGUROS GENERALES, to anticipate possible situations of employee fidelity remaining maturity at December 29, 2015.

On November 29, 2014, Insurance Policy contracted with ORION SEGUROS GENERALES, which mature on November 28, 2015, in order to anticipate possible situations employee fidelity, with its upward coverage MMUS$5 each and each individual event and loss MMUS$10 in annual aggregate.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

On October 29, 2014, CorpBanca Administradora General de Fondos SA extended the maturity of the insurance policy that the Company has with ORION SEGUROS GENERALES, to anticipate possible situations of employee fidelity remaining maturity to November 29, 2014.

e.4) Other Companies Included in Consolidation

As of December 31, 2014 and ~~2013,~~2015, the following companies have not granted any guarantees that must be disclosed in these financial statements:

CorpBanca Asesorías Financieras S.A.

CorpBanca Corredores de Seguros S.A.

CorpLegal S.A.

CorpBanca New York Branch

SMU CORP S.A.

Banco CorpBanca Colombia and Subsidiaries.

CorpBanca Securities Inc.

Recaudaciones y Cobranzas S.A.

Helm Corredores de Seguros S.A.

CorpBanca Investment Trust Colombia S.A.

Helm Comisionista de Bolsa S.A.

f) Other Liabilities

f.1) CorpBanca

The Bank is authorized to transfer to its customers any obligations for deferred customs duties arising from imports of leased assets. These transfers take place with prior authorization from the National Customs Service. As of December 31, ~~2014~~2015 and ~~2013,~~2014, the Bank has not transferred any customs duties obligations to its customers.

As of December 31, ~~2014,~~2015, lease agreements pending asset delivery amount to MCh$142,508 (MCh$90,122 ~~(MCh$99,663~~ in December ~~2013)~~2014).

~~f.2) CorpBanca Corredores de Seguros~~

In order to comply with Art. 58, letter d) of DFL 251 of 1930, which states, “Insurance Brokers, in order to conduct business, must comply with the requirement of contracting insurance policies as determined by the Superintendency of Securities and Insurance, in order to correctly and fully comply with the obligations arising from its activities and especially regarding damages that may be incurred by insured parties that contract policies through the brokerage house”, the Company renewed the following policies, taking effect April 15, 2014, and expiring April 14, 2015, through Consorcio Nacional de Seguros S.A.:

~~2014~~

~~Effective date April 15, 2014 and expiration April 14, 2015:~~

Policy
   Insured
item    Insured
Amount (UF)
10023878
   Civil Liability    60,000
10023877
   Guarantee    500

f.3) CorpBanca Administradora General de Fondos S.A.

On December 19, 2013, the Chilean Treasury seized the funds deposited in account No. 1244905 at CorpBanca that the Company had in that bank for a past due tax debt for MCh$22, according to Administrative File 10305-2013 (Las Condes). On December 27, 2013, the debt was paid and the Company filed a motion to release the seized assets.

On December 27, 2013, the debt was paid and the Company filed a motion to release the seized assets.

On February 7, 2014, the seized assets were released into account No. 1244905 at CorpBanca.

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

f.4) Other Companies Included in Consolidation

As of December 31, 2013 and 2014, the following companies have no other obligations that must be disclosed in these financial statements:

CorpBanca Corredores de Bolsa S.A.

CorpBanca Asesorías Financieras S.A.

CorpBanca Corredora de Seguros S.A.

CorpLegal S.A.

CorpBanca New York Branch

SMU CORP S.A.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Banco CorpBanca Colombia and Subsidiaries.

CorpBanca Securities Inc.

CorpBanca Investment Trust Colombia S.A.

Helm Comisionista de Bolsa S.A.

g) Penalties

g.1) CorpBanca Corredores de Bolsa S.A.

~~During the periods ended December 31, 2014 and 2013, the Company and/or its Chief Executive Officer received the following penalties:~~

The Company received a penalty from the Best Practices Committee of the Santiago Stock Exchange via a Ruling dated October 4, 2013, and notified on October 9, 2013, in case number 64-2012, regarding 24 advances for simultaneous operations performed by the Company for its proprietary portfolio, in its role as short seller, that were not covered on the same day as indicated in the “Specific Audit Report of Matching of Custody and Simultaneous Operations of CorpBanca Corredores de Bolsa S.A. on February 29, 2012”, dated June 6, 2012. This committee fined the Company 300 UF. No court or administrative recourse was filed against this penalty ruling and the fine was paid.

CCLV Penalties as of December 31, ~~2014:~~2015:

On December 3, 2015, the Company was fined 10 UF by the CCLV for annulling accepted transactions

On October ~~14, 2014,~~9, 2015, the Company was fined 50 UF by the CCLV for hedge of net seller positions during beyond the ~~verification period.~~time limits.

On ~~October 3, 2014,~~July 30, 2015, the Company was fined 12.58 UF by the CCLV for hedge of net seller positions during the beyond the time limits.

On July 29, 2015, the Company was sanctioned by the CCLV for hedge of net seller positions during beyond the ~~complement period.~~time limits.

On ~~August 21, 2014, the Company was fined 12.2 UF by the CCLV for hedge of net seller positions during the extraordinary period.~~

~~On July 22, 2014, the Company was fined 5 UF by the CCLV for annulling accepted transactions.~~

~~On July 1, 2014,~~May 6, 2015, the Company was sanctioned by the CCLV for hedge of net seller positions during beyond the ~~complement period.~~time limits.

On ~~June 9, 2014,~~April 24, 2015, the Company was ~~fined 10 UF~~sanctioned by ~~the CCLV for annulling accepted transactions.~~

~~On June 4, 2014, the Company received a penalty from~~ the CCLV for hedge of net seller positions during beyond the ~~complement period.~~

~~On May 2, 2014, the Company was fined 5 UF by the CCLV for annulling accepted transactions.~~

~~On April 4, 2014, the Company was fined 5 UF by the CCLV for modifying accepted transactions.~~time limits.

On February ~~14, 2014, the Company received a penalty from the CCLV for hedge of net seller positions during the complement period.~~

~~On January 6, 2014,~~17, 2015, the Company was fined 50 UF by the CCLV for hedge of net seller positions during beyond the ~~extraordinary period.~~time limits.

During the ~~same period,~~periods ended December 31, 2015 and 2014, its directors have not received penalties from any regulator.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~23—SHAREHOLDERS’~~23 - EQUITY

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

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

As of December 31, ~~2013~~2014 and ~~2014~~2015 the Bank’s issued shares are represented by the following detail, ordinary shares authorized, subscribed and paid, with no par value, detailed below:


					Ordinary Shares		Ordinary Shares
	Ordinary Shares		Ordinary Shares		2014		2015
	2013		2014		(number of shares)		(number of shares)
	(number of shares)		(number of shares)
Issued as of January 1		293,358,194,234		340,358,194,234		340,358,194,234		340,358,194,234
Issuance of paid shares		47,000,000,000		—		—		—
Issuance of outstanding shares		—		—		—		—
Repurchase of Bank’s issued shares (treasury shares)		—		—		—		—
Sale of bank own issued shares		—		—		—		—


Total		340,358,194,234		340,358,194,234		340,358,194,234		340,358,194,234


Capital MCh$		781,559		781,559		781,559		781,559

~~i. Purchases and Sales of Bank Shares~~

i.	Purchases and Sales of Bank Shares

As of December 31, ~~2013~~2014 and ~~2014,~~2015, there were no purchase or sale transactions by the Bank involving its own shares.

~~ii.~~

ii.	Subscribed and Paid Shares

2015

As of December 31, 2015, the Bank’s paid capital is represented by 340,358,194,234 subscribed and paid common shares with no par value.

2014

As of December 31, 2014, the Bank’s paid capital is represented by 340,358,194,234 subscribed and paid common shares with no par value.

~~2013~~iii. Profit Distribution

~~At an extraordinary shareholders’ meeting held November 6, 2012, shareholders agreed to increase the Bank’s capital by issuing 47,000,000,000 common shares with no par value.~~2015

~~At an extraordinary meeting of the board of directors (January 15, 2013), the board made the following agreements related to the aforementioned shareholders’ meeting:~~

~~To preferentially offer shareholders 47,000,000,000 common shares, with no par value.~~

~~To set the period for exercising the preferential right on these shares as January 16, 2013 to February 14, 2013.~~

To offer the issuance preferentially to the Bank’s shareholders, who will be entitled to subscribe 0.160213694 new shares for each share registered in the Shareholders’ Registry five working days before the beginning of the first preferential period.

•

InRegarding 2014 profit, at the ~~preferential offer process, 100%~~Ordinary General Shareholders’ Meeting held on March 12, 2015, shareholders agreed to distribute MCh$113,130 in earnings, representing 50% of profit for the ~~shares offered were subscribed for a total of Mch$291,168~~¹⁴year (see note 3Relevant Events). ~~This amount consists of MCh$143,325 in capital and MCh$147,843 in reserves.~~

¹⁴•

~~Information shown of Cash Flows ans Statement of Changes in Equity.~~

At the Extraordinary Shareholders’ Meeting held on June 26, 2015, shareholders agreed to distribute MCh$239,860 corresponding to 2014 profit and retained earnings from prior periods (see note 3Relevant Events).

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~iii. Profit Distribution~~

2014

Regarding 2013 profit, at the Ordinary General Shareholders’ Meeting held on March 13, 2014, shareholders agreed to distribute MCh$88,403 in earnings, representing 57% of profit for the year. The remaining 43% was left as retained earnings.

~~2013~~

Regarding 2012 profit, at the Ordinary General Shareholders’ Meeting held on March 7, 2013, shareholders agreed to distribute MCh$ 60,040 in earnings, representing 50% of profit for the year. The remaining 50% was left as retained earnings.

~~b) List of major shareholders~~

~~As of December 31, 2013 the list of major shareholders as follows:~~

   Common Stock
Year 2013
   N° of Shares    Share %
Corp Group Banking S.A.
   154,043,852,909       45.25933 %(*)
Banco Santander por cuenta de Inv. Extranjeros
   25,377,118,381       7.45600 %
Banco Itaú por cuenta de Inversionistas
   18,653,411,916       5.48052 %
Banco de Chile por cuenta de Terceros no Residentes
   18,024,857,961       5.29585 %
Compañía Inmobiliaria y de Inversiones SAGA Limitada
   18,597,285,842       5.46403 %(1)(*)
Deutsche Bank Trust Company Americas (ADRS1)
   10,139,985,500       2.97921 %
Moneda S.A. AFI para Pionero Fondo de Inversión
   9,974,800,000       2.93068 %
Sierra Nevada Investments Chile Dos Ltda.
   9,817,092,180       2.88434 %
Cía. de Seguros Corpvida S.A.
   7,193,390,867       2.11348 %
Corpbanca Corredores de Bolsa S.A. por cuenta de Terceros
   4,953,736,229       1.45545 %
Inv. Las Nieves S.A.
   3,790,725,224       1.11375 %
Santander S.A. C de B
   3,440,910,083       1.01097 %
Cía. de Seguros de Vida Consorcio Nacional de Seguros S.A.
   3,389,025,493       0.99572 %
Bolsa de Comercio de Santiago Bolsa de Valores
   2,967,790,771       0.87196 %
Compañía de Seguros Corpseguros S.A.
   2,928,659,561       0.86046 %
BTG Pactual Chile S.A. C de B
   2,829,206,389       0.83124 %
Inversiones Tauro Limtada
   2,822,883,095       0.82939 %
SN Holding S.A.
   2,713,342,266       0.79720 %
Inmob. E Inversiones Boquiñeni Ltda.
   2,353,758,526       0.69155 %
R CC Fondo de Inversión Privado
   2,221,303,931       0.65264 %(*)
Other Shareholders
   34,125,057,110       10.02623 %




Total
340,358,194,234    100.00000 %

~~(1)~~b)

~~This group includes Deutsche Securities Corredores de Bolsa Ltda., which includes 952,160,000 shares in custody that are owned by Compañía Inmobiliaria y de Inversiones SAGA Limitada.~~List of major shareholders

~~(*)~~

~~In summary, the Saieh Group (controlling party) has a 51.3760% interest in CorpBanca and Subsidiaries.~~

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014 the shareholder composition is as follows:


						Common Stock
	Common Stock Year 2014					Year 2014
	N° of Shares		Share %			N° of Shares		Share %
Corp Group Banking S.A.		148,835,852,909		43.72918	%(*)		148,835,852,909		43.72918	%(*)
Banco de Chile por cuenta de Terceros no Residentes		28,294,988,762		8.31330	%		28,294,988,762		8.31330	%
Banco Santander por cuenta de Inv. Extranjeros		23,071,014,201		6.77845	%		23,071,014,201		6.77845	%
Banco Itaú por cuenta de Inversionistas		23,733,292,313		6.97303	%		23,733,292,313		6.97303	%
Compañía Inmobiliaria y de Inversiones SAGA Limitada		20,918,589,773		6.14605	%(1)(*)		20,918,589,773		6.14605	%(1)(*)
Deutsche Bank Trust Company Americas (ADRS)		14,042,402,000		4.12577	%		14,042,402,000		4.12577	%
Moneda S.A. AFI para Pionero Fondo de Inversión		8,949,961,000		2.62957	%		8,949,961,000		2.62957	%
Sierra Nevada Investments Chile Dos Ltda.		9,817,092,180		2.88434	%		9,817,092,180		2.88434	%
Corpbanca Corredores de Bolsa S.A. por cuenta de terceros		4,238,106,664		1.24519	%		4,238,106,664		1.24519	%
Inv. Las Nieves S.A.		3,790,725,224		1.11375	%		3,790,725,224		1.11375	%
Cía. de Seguros Corpvida S.A.		3,563,148,560		1.04688	%		3,563,148,560		1.04688	%
Cía. de Seguros de Vida Consorcio Nacional de Seguros S.A.		3,316,120,234		0.97430	%		3,316,120,234		0.97430	%
Santander S.A. C de B		3,528,163,068		1.03660	%		3,528,163,068		1.03660	%
Bolsa de Comercio de Santiago Bolsa de Valores		2,569,145,250		0.75484	%		2,569,145,250		0.75484	%
BTG Pactual Chile S.A. C de B		2,053,973,966		0.60347	%		2,053,973,966		0.60347	%
Inmob. E Inversiones Boquiñeni Ltda.		2,353,758,526		0.69155	%		2,353,758,526		0.69155	%
MBI Corredores de Bolsa S.A.		1,969,927,336		0.57878	%		1,969,927,336		0.57878	%
Consorcio C. de B. S.A.		1,918,739,065		0.56374	%		1,918,739,065		0.56374	%
Compañía de Seguros Corpseguros S.A.		2,290,479,818		0.67296	%		2,290,479,818		0.67296	%
Valores Security S.A. C. de B.		1,872,636,183		0.55020	%		1,872,636,183		0.55020	%
Other Shareholders		29,230,077,202		8.58805	%		29,230,077,202		8.58805	%

Total		340,358,194,234		100.00000	%		340,358,194,234		100.00000	%

(1)	This group includes Deutsche Securities Corredores de Bolsa Ltda., which includes 926,513,842 shares in custody that are owned by Compañía Inmobiliaria y de Inversiones SAGA Limitada.

(*)	In summary, the ultimate parent of the group is the Saieh Group ~~has a 49.88% interest in CorpBanca and Subsidiaries.~~which group is deemed to have control with its 49.8752% participation.

~~c) Dividends~~

~~The distribution~~As of ~~dividends~~December 31, 2015 the list of ~~the Bank is~~major shareholders as follows:

Year
   Income attributable
to equity holders    To reserves or
retaines earnings    Intended
Dividens    Percentage
Distributed N° of Shares    Dividend per share
(in MC$)
   MCh$    MCh$    MCh$    %
2013 (Shareholders Meeting, February 2014)
   155,093       66,690       88,403       57.00 % 340,358,194,234       0.260
2012 (Shareholders Meeting, February 2013)
   120,080       60,040       60,040       50.00 % 340,358,194,234       0.176
2011 (Shareholders Meeting, February 2012)
   122,849       —         122,849       100 % 250,358,194,234       0.491

~~Figures are presented as required by local regulations.~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


	Common Stock
	Year 2015
	N° of Shares		Share %
Corp Group Banking S.A.		148,835,852,909		43.72918	%(*)
Banco de Chile por cuenta de Terceros no Residentes		31,093,128,417		9.13541	%
Banco Santander por cuenta de Inv. Extranjeros		23,965,413,566		7.04123	%
Banco Itaú por cuenta de Inversionistas		17,788,266,368		5.22634	%
Compañía Inmobiliaria y de Inversiones SAGA Limitada		20,918,589,773		6.14605	%(1)(*)
Deutsche Bank Trust Company Americas (ADRS)		16,074,657,500		4.72286	%
Moneda S.A. AFI para Pionero Fondo de Inversión		7,473,384,000		2.19574	%
Sierra Nevada Investments Chile Dos Ltda.		9,817,092,180		2.88434	%
Corpbanca Corredores de Bolsa S.A. por cuenta de terceros		9,227,579,709		2.71114	%
Inversiones Las Nieves S.A.		1,890,725,224		0.55551	%
Cía. de Seguros de Vida Consorcio Nacional de Seguros S.A.		3,694,485,882		1.08547	%
Bolsa de Comercio de Santiago Bolsa de Valores		3,485,036,065		1.02393	%
BCI Corredores de Bolsa S.A.		3,263,195,956		0.95875	%
Compañía de Seguros Confuturo S.A.		3,145,931,028		0.92430	%
BTG Pactual Chile S.A. C de B		2,312,540,037		0.67944	%
Inmob. E Inversiones Boquiñeni Ltda.		2,353,758,526		0.69155	%
Banchile Corredores de Bolsa S.A.		1,978,989,439		0.58144	%
Larrain Vial Corredores de Bolsa S.A.		1,626,092,346		0.47776	%
Consorcio Corredores de Bolsa S.A.		1,896,991,436		0.55735	%
CRN Inmobiliaria Limitada		1,535,239,055		0.45107	%
Credicorp Capital S.A. Corredores de Bolsa		1,389,545,804		0.40826	%
El Maderal Inversiones Ltda.		1,244,312,335		0.36559	%
Itau BBA Corredores de Bolsa Ltda.		1,137,057,344		0.33408	%
Valores Security S.A. Corredores de Bolsa		4,024,271,107		1.18236	%
Other Shareholders		20,186,058,228		5.93085	%

Total		340,358,194,234		100.00000	%

(1)	This group includes Deutsche Securities Corredores de Bolsa Ltda. which includes 926,513,842 shares in custody that are owned by Compañía Inmobiliaria y de Inversiones SAGA Limitada.

(*)	In summary, the ultimate parent of the group is the Saieh Group which group is deemed to have control with its 49.8752% participation.

Dividends

The distribution of dividends of the Bank is as follows:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and ~~2014 basic earnings and diluted earnings is as follows:~~2015

   2013    2014
   N° Shares    Total    N° Shares    Total
   Millions    MCh$    Millions    MCh$
Basic and diluted earnings per share

Basic earnings per share

Net income for the period
   —         162,422       —         233,997
Weighted average number of shares outstanding
   337,605       —         340,358       —
Adjusted number of shares
   337,605       —         340,358       —
Basic earnings per share (Chilean pesos)
   —         0.48          0.69
Diluted earnings per share

Net income for the period
   —         162,422       —         233,997
Weighted average number of shares outstanding
   337,605       —         340,358       —
Diluted effect
   —         —         —         —
Adjusted number of shares
�� 337,605       —         340,358       —
Diluted earnings per share (Chilean pesos)
   —         0.48       —         0.69


Year	Income attributable to equity holders		To reserves or retained earnings			Intended Dividends		Percentage Distributed			N° of Shares		Dividend per share (in MC$)
	MCh$		MCh$			MCh$		%

2014 (Extraordinary Shareholders Meeting, June 2015)		—		(239,860	)		239,860		100.00	%		340,358,194,234		0.705

2014 (Shareholders Meeting, March 2015)		226,260		113,130			113,130		50.00	%		340,358,194,234		0.332

2013 (Shareholders Meeting, February 2014)		155,093		66,690			88,403		57.00	%		340,358,194,234		0.260

2012 (Shareholders Meeting, February 2013)		120,080		60,040			60,040		50.00	%		340,358,194,234		0.176

~~e) Valuation Accounts~~Figures are presented as required by local regulations.

d)	As of the years ended December 31, 2014 and 2015 basic earnings and diluted earnings attributable to the equity holders of the bank is as follows:


	2014				2015
	N° Shares		Total		N° Shares		Total
	Millions		MCh$		Millions		MCh$

Basic and diluted earnings per share
Basic earnings per share
Net income attributable to the equity holders		—		233,997		—		216,321
Weighted average number of shares outstanding		340,358		—		340,358		—
Adjusted number of shares		340,358		—		340,358		—
Basic earnings per share (Chilean pesos)				0.69				0.64

Diluted earnings per share
Net income attributable to the equity holders		—		233,997		—		216,321
Weighted average number of shares outstanding		340,358		—		340,358		—
Diluted effect		—		—		—		—
Adjusted number of shares		340,358		—		340,358		—
Diluted earnings per share (Chilean pesos)		—		0.69		—		0.64

e)	Valuation Accounts

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

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

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

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

Defined benefit obligation:This includes the effects ~~to requirements according to~~of complying with IAS 19.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

f)
f) Other Comprehensive Income

The following tables present movements in equity and income taxes for the years ended December 31, 2013, 2014 and 2015.


Other Comprehensive Income	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Items that may be reclassified subsequently to profit or loss:

Financial instruments available for sale
Balance as of January 1,											(8,143	)		(3,546	)		(11,605	)
Gains (losses) on remeasuring financial instruments available for sale, before tax											4,597			(8,059	)		(43,720	)

Total											(3,546	)		(11,605	)		(55,325	)


Hedges of net investment in foreign operations
Balance as of January 1,											456			(2,384	)		(7,135	)
Gains (losses) on hedges of net investment in foreign operations, before tax											(2,840	)		(4,751	)		(8,876	)

Total											(2,384	)		(7,135	)		(16,011	)


Cash flow hedges
Balance as of January 1,											570			(5,187	)		958
Gains (losses) on cash flow hedges, before tax											(5,757	)		6,145			(4,046	)

Total											(5,187	)		958			(3,088	)


Exchange differences on translation - New York Branch - Colombia
Balance as of January 1,											(26,217	)		(14,257	)		(82,930	)
Gains (losses) on exchange differences on translation, before tax		(25,157	)		11,960			(68,673	)		11,960			(68,673	)		(82,148	)

Other comprehensive income, before tax, exchange differences on translation		(25,157	)		11,960			(68,673	)
Total											(14,257	)		(82,930	)		(165,078	)

Financial instruments available - for - sale
Gains (losses) on remeasuring financial instruments available - for - sale, before tax		(5,368	)		4,597			(8,059	)

Other comprehensive income, before tax, financial instruments available		(5,368	)		4,597			(8,059	)
Remeasurement of defined benefit obligation
Balance as of January 1,											(10,301	)		(7,001	)		(6,046	)
Gains (losses) on Remeasurement of defined benefit obligation, before tax											3,300			955			60

Cash flow hedges
Gains (losses) on cash flow hedges, before tax		3,146			(5,757	)		6,145

Other comprehensive income, before tax, cash flow hedges		3,146			(5,757	)		6,145

Hedges of net investment in foreign operations
Gains (losses) on hedges of net investment in foreign operations, before tax		757			(2,840	)		(4,751	)

Other comprehensive income, before tax, Hedges of net investment in foreign operations		757			(2,840	)		(4,751	)
Total											(7,001	)		(6,046	)		(5,986	)

Other comprehensive income, before tax		(26,622	)		7,960			(75,338	)		(32,375	)		(106,758	)		(245,488	)

Income tax relating to components of other comprehensive income
Income tax relating to instruments available - for - sale		888			(911	)		3,989
Income tax relating to instruments available for sale											747			4,736			18,879
Income tax relating to hedges of net investment in foreign operations		(147	)		568			1,371			477			1,848			4,606
Income tax relating to cash flow hedge		(361	)		842			(1,090	)		728			(362	)		742
Income tax relating to defined benefit obligation											2,318			1,946			1,923

Aggregated income tax relating to components of other comprehensive income		380			499			4,270
Total											4,270			8,168			26,150


Other comprehensive income, after tax		(26,242	)		8,459			(71,068	)		(28,105	)		(98,590	)		(219,338	)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit obligation
Gains (losses) on Remeasurement of defined benefit obligation, before tax		(10,301	)		3,300			955
Income tax relating to components of other comprehensive income
Income tax relating to defined benefit obligation		3,440			(1,122	)		(372	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~g) Rollforward for the year ended (OCI)~~

g)	Rollforward for the year ended (OCI)

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


							2014			2015
	2013			2014			MCh$			MCh$
	MCh$			MCh$
Opening Balance, Accumulated other comprehensive income		(8,143	)		(3,546	)		(3,546	)		(11,605	)
Amount recognized in other comprehensive income for the period		12,775			11,798			11,798			(36,012	)
Amount reclassified from equity to profit or loss for the period		(8,178	)		(19,857	)		(19,857	)		(7,708	)

Ending balance, accumulated other comprehensive income		(3,546	)		(11,605	)		(11,605	)		(55,325	)

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


							2014			2015
	2013			2014			MCh$			MCh$
	MCh$			MCh$
Opening Balance, Accumulated other comprehensive income		570			(5,187	)		(5,187	)		958
Amount recognized in other comprehensive income for the period		(1,563	)		(1,278	)		(1,278	)		(3,694	)
Amount reclassified from equity to profit or loss for the period		(4,194	)		7,423			7,423			(352	)

Ending balance, accumulated other comprehensive income		(5,187	)		958			958			(3,088	)

~~h) Non - Controlling interest:~~

h)	Non - Controlling interest:

This item reflects the net amount of the subsidiaries’ net equity attributable to equity instruments which do not belong to the Bank either directly or indirectly, including the part that has been attributed to income for the period.

This corresponds to the net amount of equity in the subsidiaries attributable to capital that does not belong, directly or indirectly, to the Bank, including the part of profit for the period that is attributed to them. Non-controlling interest in the subsidiary’s equity and profit for the period is detailed as follows:

The non controlling interest in the subsidiaries’ equity is summarized as follows:


As of December 31, 2012
As of December 31, 2013																										As of December 31, 2013
									Other Comprehensive income																										Other Comprehensive income
Subsidiaries	Non- controlling			Equity		Net Income			Defined benefit obligation		Financial instruments available for sale		Exchange differences on translation NY		Effect Variation Accounting Case Foreign Investment		Cash Flow Hedges Effect Change		Deferred Tax		Other Compre- hensive income		Compre- hensive Income				Non- controlling			Equity		Net Income			Defined benefit obligation		Financial instruments available for sale		Exchange differences on translation NY		Effect Variation Accounting Case Foreign Investment		Cash Flow Hedges Effect Change		Deferred Tax		Other Comprehensive income
	%			MCh$		MCh$									MCh$				MCh$		MCh$		MCh$				%			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

SMU CORP S.A.		49.00	%		3,074		(1,965	)		—		—		—		—		—		—		—		(1,965	)			49.00	%		2,386		(1,475	)		—		—		—		—		—		—		—
Corredora de Seguros Helm																												20.00	%		554		83			—		—		—		—		—		—		—
Banco CorpBanca Colombia and subsidiaries		8.07	%		51,296		2,016			—		—		—		—		—		—		—		2,016				33.62	%		302,758		14,209			—		—		—		—		—		—		—

					54,370		51			—		—		—		—		—		—		—		51							305,698		12,817			—		—		—		—		—		—		—

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As of December 31, 2013

Other Comprehensive income
Subsidiaries
Non-
controlling Equity Net
Income Defined
benefit
obligation Financial
instruments
available
for sale Exchange
differences
on
translation
NY Effect
Variation
Accounting
Case
Foreign
Investment Cash
Flow
Hedges
Effect
Change Deferred
Tax Other
Compre-
hensive
income Compre-
hensive
Income
% MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
SMU CORP S.A.
49.00 % 2,386    (1,475 ) —      —      —      —      —      —      —      (1,475 )
Corredora de Seguros Helm
20.00 % 554    83    —      —      —      —      —      —      —      83
Banco CorpBanca Colombia and subsidiaries
33.62 % 302,758    14,209    —      —      —      —      —      —      —      14,209

305,698    12,817    —      —      —      —      —      —      —      12,817


As of December 31, 2014																											As of December 31, 2014
									Other Comprehensive income																											Other Comprehensive income
Subsidiaries	Non- controlling			Equity		Net Income			Defined benefit obligation		Financial instruments available for sale		Exchange differences on translation NY		Effect Variation Accounting Case Foreign Investment		Cash Flow Hedges Effect Change		Deferred Tax			Other Compre- hensive income		Compre- hensive Income				Non- controlling			Equity		Net Income			Defined benefit obligation		Financial Instruments available for sale		Exchange differences on translation NY		Effect Variation Accounting Case Foreign Investment		Cash Flow Hedges Effect Change		Deferred Tax			Other Comprehensive income
																												%			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$
	%			MCh$		MCh$									MCh$				MCh$			MCh$		MCh$
SMU CORP S.A.		49.00	%		2,743		(687	)		—		—		—		—		—		—			—		(687	)			49.00	%		2,743		(687	)		—		—		—		—		—		—			—
Corredora de Seguros Helm		20.00	%		1,761		374			—													—		374				20.00	%		1,761		374			—													—
Banco CorpBanca Colombia and subsidiaries		33.72	%		321,433		40,017			487		4,261		—		—		—		(1,869	)		2,879		42,896				33.72	%		321,433		40,017			487		4,261		—		—		—		(1,869	)		2,879

					325,937		39,704			487		4,261		—		—		—		(1,869	)		2,879		42,583							325,937		39,704			487		4,261		—		—		—		(1,869	)		2,879

As of December 31, 2015																											As of December 31, 2015
																																				Other Comprehensive income
Subsidiaries																												Non- controlling			Equity		Net Income			Defined benefit obligation		Financial Instruments available for sale		Exchange differences on translation NY		Effect Variation Accounting Case Foreign Investment		Cash Flow Hedges Effect Change		Deferred Tax			Other Comprehensive income
																												%			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$

SMU CORP S.A.																													49.00	%		2,644		(526	)		—		—		—		—		—		—			—
Corredora de Seguros Helm																													20.00	%		1,673		169			—													—
Banco CorpBanca Colombia and subsidiaries																													33.72	%		310,424		22,701			30		7,431		—		945		—		(3,251	)		5,155

																																314,741		22,344			30		7,431		—		945		—		(3,251	)		5,155

The rollforward of non-controlling interest is as follow:


								2013		2014			2015
	2012		2013		2014			MCh$		MCh$			MCh$
	MCh$		MCh$		MCh$
Balances as of January 1,		2,609		54,370		305,698			54,370		305,698			325,937
Net income for the year		51		12,817		42,583			12,817		42,583			27,499
Change in non-controlling interest		2,430		3,503		(22,344	)		3,503		(22,344	)		(38,695	)
Non-controlling interest arising on the acquisition non participation in rights to sahere increase		49,280		235,008		—			235,008		—			—

Balances as of December 31,		54,370		305,698		325,937			305,698		325,937			314,741

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The summarized financial information of Banco CorpBanca Colombia and its ~~subsidiaries which information~~subsidiaries:

h.1) Information represents the non-controlling interest prior to intergroup ~~eliminations~~elimination is as follows:

~~h.1) Dividends paid to non-controlling interests:~~


	2013			2014			2015
	MCh$			MCh$			MCh$

Dividends paid		—			—			—

	2013			2014			2015
	MCh$			MCh$			MCh$

Cash and deposit in banks		200,679			209,827			175,505
Loans and receivables from banks		4,781			34,465			21,789
Loans and receivables from customers, net		1,680,824			1,700,845			1,679,798
Intangible assets		156,379			137,972			117,344
Others		425,646			541,753			613,133

TOTAL ASSETS		2,468,309			2,624,862			2,607,569


Currents account and demand deposits		838,040			965,449			1,040,753
Time deposits and saving accounts		852,859			754,471			801,791
Debt issued		116,940			126,023			115,502
Others		354,772			454,606			335,666

TOTAL LIABILITIES		2,162,611			2,300,549			2,293,712


	2013			2014			2015
	MCh$			MCh$			MCh$

Net interest income		45,955			97,818			93,125
Net service fee income		11,016			21,968			17,048
Operating income before provision for loan losses		60,605			167,099			151,284
Total operating income, net of loan losses, interest and		(450,407	)		134,944			108,339
Total net operating income		15,198			46,831			34,264
Net income for the period		12,817			39,704			23,033


	2013			2014			2015
	MCh$			MCh$			MCh$

Cash flow from operating activities		39,639			(103,207	)		80,786
Cash flow from investing activities		(49,442	)		(36,018	)		(11,413	)
Cash flow from financing activities		115,639			173,995			(138,531	)

   2012    2013    2014
   MCh$    MCh$    MCh$
Dividends paid
   —         —         —
   2012    2013    2014
   MCh$    MCh$    MCh$
Cash and deposit in banks
   13,778       200,679       209,827
Loans and receivables from banks
   65       4,781       34,465
Loans and receivables from customers, net
   149,224       1,680,824       1,700,845
Intangible assets
   38,031       156,379       137,972
Others
   39,068       425,646       541,753






TOTAL ASSETS
240,166    2,468,309    2,624,862






Currents account and demand deposits
25,454    838,040    965,449
Time deposits and saving accounts
121,371    852,859    754,471
Debt issued
6,258    116,940    126,023
Others
32,713    354,772    454,606






TOTAL LIABILITIES
185,796    2,162,611    2,300,549






   2012    2013    2014
   MCh$    MCh$    MCh$
Net interest income
   5,692       45,955       97,818
Net service fee income
   1,606       11,016       21,968
Operating income before provision for loan losses
   7,808       60,605       167,099
Total operating income, net of loan losses, interest and
   (7,745 )    (450,407 )    134,944
Total net operating income
   62       15,198       46,831
Net income for the period
   51       12,817       39,704






   2012    2013    2014
   MCh$    MCh$    MCh$
Cash flow from operating activities
   15,011       39,639       (103,207 )
Cash flow from investing activities
   (26,728 )    (49,442 )    (36,018 )
Cash flow from financing activities
   22,560       115,639       173,995

h.2)	Summarized financial information of Banco CorpBanca Colombia and its subsidiaries as follows:


	2013			2014			2015
	MCh$			MCh$			MCh$

Dividends paid		—			—			—

	2013			2014			2015

	MCh$			MCh$			MCh$

Cash and deposit in banks		595,663			622,238			520,456
Loans and receivables from banks		14,423			102,204			64,616
Loans and receivables from customers, net		5,017,516			5,044,196			4,981,414
Intangible assets		355,572			321,029			286,769
Others		1,231,299			1,606,191			1,802,481

TOTAL ASSETS		7,214,473			7,695,858			7,655,736
TOTAL ASSETS

Currents account and demand deposits		815,955			801,149			741,464
Time deposits and saving accounts		2,537,342			2,237,372			2,377,700
Debt issued		347,909			373,720			342,519
Others		2,730,817			3,490,399			3,415,222

TOTAL LIABILITIES		6,432,023			6,902,640			6,876,905


	2013			2014			2015

	MCh$			MCh$			MCh$

Net interest income		196,295			290,077			276,160
Net service fee income		41,890			65,147			50,557
Operating income before provision for loan losses		301,998			495,532			448,627
Total operating income, net of loan losses, interest and		255,715			400,175			321,278
Total net operating income		84,356			140,240			102,972

Net income for the period		56,861			115,170			69,666
Net income for the period

	2013			2014			2015
	MCh$			MCh$			MCh$

Cash flow from operating activities		102,985			(152,867	)		108,235
Cash flow from investing activities		(125,463	)		(48,255	)		(15,291	)
Cash flow from financing activities		293,444			233,113			(185,600	)

i) Dilutive effect of purchase of Helm Bank and subsidiaries

~~Dilutive effect.~~ Since CorpBanca Chile did not participate in the capital increase of Banco CorpBanca Colombia the ownership of CorpBanca Chile ~~decrease~~decreased from 91.9314% to 66.3877% CorpBanca Chile remeasured non-controlling interest at the date of transaction at fair value and adjusted the ~~carryng~~carrying amounts of the controlling and non-controlling interest to reflect the changes in their relative interests in the subsidiary (For more information, see Statements of Changes in ~~Shareholders’~~ Equity). In 2014, the interest decreased to 66.279% bythrough the merger with Helm Bank Colombia.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~24—~~24 - INTEREST INCOME AND EXPENSE

a)	The composition of interest income and inflation-indexing for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 is as follows:


																							As of December 31,
	As of December 31,																						2013								2014								2015
	2012						2013								2014								Interest			Inflation (1)		Total			Interest			Inflation (1)		Total			Interest		Inflation (1)		Total
	Interest		Inflation (1)		Total		Interest			Inflation (1)		Total			Interest			Inflation (1)		Total			MCh$			MCh$		MCh$			MCh$			MCh$		MCh$			MCh$		MCh$		MCh$
	MCh$		MCh$		MCh$		MCh$			MCh$		MCh$			MCh$			MCh$		MCh$
Normal Portfolio
Investments under agreements to resell		1,604		71		1,675		15,115			20		15,135			13,518			37		13,555			15,115			20		15,135			13,518			37		13,555			13,985		4		13,989
Loans and receivables to banks		11,524		—		11,524		14,673			—		14,673			11,000			—		11,000			14,673			—		14,673			11,000			—		11,000			10,009		—		10,009
Commercial loans		407,363		47,354		454,717		536,812			43,437		580,249			629,883			114,015		743,898			536,812			43,437		580,249			629,883			114,015		743,898			640,667		86,011		726,678
Mortgage Loans		65,705		26,964		92,669		90,079			29,401		119,480			118,304			88,985		207,289			90,079			29,401		119,480			118,304			88,985		207,289			118,610		69,388		187,998
Consumer Loans		115,172		1,088		116,260		189,261			919		190,180			273,992			484		274,476			189,261			919		190,180			273,992			484		274,476			253,600		221		253,821
Financial investments		41,775		10,889		52,664		38,158			1,560		39,718			31,666			9,944		41,610			38,158			1,560		39,718			31,666			9,944		41,610			59,497		17,989		77,486
Other interest income		3,171		702		3,873		4,133			514		4,647			7,674			1,328		9,002			4,133			514		4,647			7,674			1,328		9,002			7,737		1,057		8,794
Gain (loss) from accounting hedges (*)		—		—		—		(713	)		—		(713	)		(291	)		—		(291	)		(713	)		—		(713	)		(291	)		—		(291	)		1,709		—		1,709

Subtotals		646,314		87,068		733,382		887,518			75,851		963,369			1,085,746			214,793		1,300,539			887,518			75,851		963,369			1,085,746			214,793		1,300,539			1,105,814		174,670		1,280,484


Impaired loan Portfolio
Interest Recovery
Commercial Loans		9,696		1,365		11,061		14,990			1,349		16,339			8,592			2,640		11,232			14,990			1,349		16,339			8,592			2,640		11,232			14,652		2,949		17,601
Mortgage Loans		723		311		1,034		1,479			629		2,108			1,556			1,697		3,253			1,479			629		2,108			1,556			1,697		3,253			532		606		1,138
Consumer Loans		17,507		8		17,515		25,285			5		25,290			5,093			7		5,100			25,285			5		25,290			5,093			7		5,100			257		—		257
Financial investments		—		—		—		—			—		—			—			—		—			—			—		—			—			—		—			—		—		—
Other interest income		—		—		—		—			—		—			—			—		—			—			—		—			—			—		—			—		—		—

Subtotals		27,926		1,684		29,610		41,754			1,983		43,737			15,241			4,344		19,585			41,754			1,983		43,737			15,241			4,344		19,585			15,441		3,555		18,996



Total Interest Income		674,240		88,752		762,992		929,272			77,834		1,007,106			1,100,987			219,137		1,320,124			929,272			77,834		1,007,106			1,100,987			219,137		1,320,124			1,121,255		178,225		1,299,480

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

b)	The detail of interest expenses for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 is the following:

   As of December 31,
   2012 2013 2014
   Interests Inflation (1) Total Interests Inflation (1) Total Interests Inflation (1) Total
   MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
Demand Deposits
   (1,935 ) (94 ) (2,029 ) (33,195 ) (224 ) (33,419 ) (73,560 ) (547 ) (74,107 )
Investments under agreements to repurchase
   (15,697 ) (54 ) (15,751 ) (14,569 ) (167 ) (14,736 ) (28,107 ) (35 ) (28,142 )
Deposits and Time Deposits
   (346,776 ) (12,865 ) (359,641 ) (352,167 ) (9,476 ) (361,643 ) (325,316 ) (23,849 ) (349,165 )
Borrowings from financial institutions
   (14,771 ) —      (14,771 ) (15,987 ) —      (15,987 ) (21,977 ) —      (21,977 )
Debt issued
   (70,095 ) (38,460 ) (108,555 ) (95,368 ) (32,843 ) (128,211 ) (119,213 ) (92,057 ) (211,270 )
Other financial obligations
   (1,073 ) (264 ) (1,337 ) (334 ) (805 ) (1,139 ) (274 ) (567 ) (841 )
Other interest expenses
   (24 ) (1,504 ) (1,528 ) (379 ) (857 ) (1,236 ) (946 ) (2,506 ) (3,452 )
Gain (loss) from accounting hedges (*)
   (2,504 ) —      (2,504 ) 6,955    —      6,955    (286 ) —      (286 )


Total Interest Expenses
   (452,875 ) (53,241 ) (506,116 ) (505,044 ) (44,372 ) (549,416 ) (569,679 ) (119,561 ) (689,240 )

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~


	As of December 31,
	2013									2014									2015
	Interests			Inflation (1)			Total			Interests			Inflation (1)			Total			Interests			Inflation (1)			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Demand Deposits		(33,195	)		(224	)		(33,419	)		(73,560	)		(547	)		(74,107	)		(83,278	)		(372	)		(83,650	)
Investments under agreements to repurchase		(14,569	)		(167	)		(14,736	)		(28,107	)		(35	)		(28,142	)		(36,468	)		(16	)		(36,484	)
Deposits and Time Deposits		(352,167	)		(9,476	)		(361,643	)		(325,316	)		(23,849	)		(349,165	)		(304,121	)		(25,487	)		(329,608	)
Borrowings from financial institutions		(15,987	)		—			(15,987	)		(21,977	)		—			(21,977	)		(22,027	)		—			(22,027	)
Debt issued		(95,368	)		(32,843	)		(128,211	)		(119,213	)		(92,057	)		(211,270	)		(136,686	)		(68,300	)		(204,986	)
Other financial obligations		(334	)		(805	)		(1,139	)		(274	)		(567	)		(841	)		(180	)		(212	)		(392	)
Other interest expenses		(379	)		(857	)		(1,236	)		(946	)		(2,506	)		(3,452	)		(2,157	)		(1,349	)		(3,506	)
Gain (loss) from accounting hedges (*)		6,955			—			6,955			(286	)		—			(286	)		1,752			—			1,752

Total Interest Expenses		(505,044	)		(44,372	)		(549,416	)		(569,679	)		(119,561	)		(689,240	)		(583,165	)		(95,736	)		(678,901	)

(1)

The inflation indexing is the result of changes in the Unidades de Fomento (“UF”). The UF is an inflation-index Chilean monetary unit with a value in Chilean pesos that changes daily to reflect changes in the official Consumer Price Index (“CPI”) of the Instituto Nacional de Estadísticas (the Chilean National Institute of Statistics) for the previous month. The effect of any changes in the nominal peso value of our UF-denominated interest earning assets and interest bearing liabilities is reflected in our results of operations as an increase (or decrease, in the event of deflation) in interest income and expense, respectively.

(*)

The mark to market adjustments are presented in this line for hedging derivatives used in hedging of assets except in the case of foreign currency hedges and cash flow hedges ~~are cross-currency,~~(cross-currency), their all-in mark to market adjustment is included in the foreign exchange gain (losses) (See Note 27Net foreign exchange income (losses)).

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~25—~~25 - FEES AND INCOME FROM SERVICES

Fees and income from services and the related expenses for the years ended December, ~~2012,~~ 2013, 2014 and ~~2014~~2015 are summarized as follows:


	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Income from services fees
Lines of credit and overdrafts		12,384			13,393			11,629			13,393			11,629			10,962
Letters of credit and guarantees		7,915			9,826			12,621			9,826			12,621			10,458
Card services		16,479			25,591			37,911			25,591			37,911			38,461
Account administration		7,116			8,959			11,066			8,959			11,066			11,012
Collections, billings and payments		20,591			30,127			34,129			30,127			34,129			35,987
Management and brokerage commissions for securities		4,083			6,281			8,369			6,281			8,369			9,986
Investments in mutual funds and others		9,220			14,522			23,557			14,522			23,557			19,471
Insurance brokerage		9,024			13,615			21,025			13,615			21,025			17,788
Financial advisors		11,245			11,725			23,631			11,725			23,631			23,986
Other fees earned		6,153			9,397			16,401			9,397			16,401			20,473
Other payments for services rendered		968			1,341			1,674			1,341			1,674			1,817

Total Income from services fees		105,178			144,777			202,013			144,777			202,013			200,401


	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Expenses from services fees
Credit card transactions		(9,089	)		(12,367	)		(17,282	)		(12,367	)		(17,282	)		(24,727	)
Securities transactions		(2,480	)		(3,588	)		(3,922	)		(3,588	)		(3,922	)		(4,554	)
Commissions paid through Chilean clearing house (ACC)		(961	)		(3,779	)		(4,503	)		(3,779	)		(4,503	)		(5,610	)
Foreign trade transactions		(2,914	)		(415	)		(996	)		(415	)		(996	)		(996	)
Expenses from refunded commissions		(377	)		(15	)		(6	)		(15	)		(6	)		—
Customer loyalty program		(20	)		(824	)		(887	)		(824	)		(887	)		(969	)
Customer loyalty program benefits		(1,133	)		(1,191	)		(925	)		(1,191	)		(925	)		(1,466	)
Loans services to customers		(1,195	)		(1,409	)		(3,692	)
Loan services to customers											(1,409	)		(3,692	)		(3,934	)
Fees for payroll deduction agreements		(1,365	)		(613	)		(4,565	)		(613	)		(4,565	)		(2,517	)
Other paid commissions		—			(2,599	)		(3,645	)		(2,599	)		(3,645	)		(2,781	)

Total expenses from services fees		(19,534	)		(26,800	)		(40,423	)		(26,800	)		(40,423	)		(47,554	)



Net service fee income		85,644			117,977			161,590			117,977			161,590			152,847

The fees earned through transactions with letters of credit are recorded under “Interest income” within the consolidated statements of income.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~26—~~26 - NET TRADING AND INVESTMENT INCOME

Trading and investment income recognized on the consolidated statements of income for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 is as follows:


	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Trading instruments		19,922			10,660			37,752
Speculative financial instruments mark to market adjustment		23,677			58,471			94,279

Trading instruments (securities)											10,660			37,752			19,354
Trading instruments (derivatives)											58,471			94,279			286,168
Other financial investments at fair value with effect on profit or loss		5,764			7,741			19,862			7,741			19,862			22,285
Financial investments available-for-sale realized gain (losses) (*)		5,526			22,293			31,659			22,293			31,659			10,406
Profit on bank-issued time deposit repurchase		74			397			64			397			64			58
Loss on bank-issued time deposit repurchase		(158	)		(478	)		(376	)		(478	)		(376	)		(172	)
Other		189			2,203			453			2,203			453			599


Total trading and investment income, net		54,994			101,287			183,693			101,287			183,693			338,698

(*)	Results generated by instruments available for sale mainly composed by the following:

Fair value adjustments recognized in the results. This includes transfers to results, generated on exercise, of the fair value adjustments by selling of those instruments available for ~~sell.~~sale.

Results generated from sales and / or liquidation, corresponding to the difference between the value obtained as compensation and the fair ~~book~~ value of the instruments transferred.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~27—~~27 - NET FOREIGN EXCHANGE INCOME (LOSSES)

This item includes the income earned from foreign currency trading, the differences arise from converting monetary items in a foreign currency to the functional currency and those generated by non-monetary assets in a foreign currency at the time of their disposal.

The detail of net foreign exchange gains (losses) for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 is as follows:


	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Gains (losses) of foreign currency exchange differences
Net gains (losses) of foreign currency exchange positions		26,108			(18,980	)		(8,627	)		(18,980	)		(8,627	)		(158,271	)
Other foreign currency exchange gains(losses)		3,524			1,963			3,165
Other foreign currency exchange gains (losses)											1,963			3,165			10,858

Subtotals		29,632			(17,017	)		(5,462	)
Subtotal											(17,017	)		(5,462	)		(147,413	)


Net earnings on exchange rate adjustments
Adjustments to loan to customers		(557	)		1,427			1,860			1,427			1,860			488
Adjustments to investment instruments		(3,226	)		713			1,448			713			1,448			1,739
Adjustments to other liabilities		220			(88	)		(95	)		(88	)		(95	)		(1	)
Fair value gains (losses) on foreign currency hedging derivatives (1) (*)		4,627			1,059			(11,177	)		1,059			(11,177	)		(6,010	)

Subtotal		1,064			3,111			(7,964	)		3,111			(7,964	)		(3,784	)

Total		30,696			(13,906	)		(13,426	)		(13,906	)		(13,426	)		(151,197	)

(1)	In this present current earnings by hedging currency assets and liabilities. Different information to revealed in Note 24Interest Income and Expense and Note 26Net Trading and Investment Income.

(*)	The Fair value gains (losses) on hedging derivatives as of December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 is as follows:


	Cash Flows (CF) or	Fair Value							Cash Flows (CF) or	Fair Value
	Fair Value	Assets		Liabilities		Gain/(loss)			Fair Value	Assets		Liabilities		Gain/(loss)
As of December 31, 2012	(FV) Hedge	MCh$		MCh$		MCh$
As of December 31, 2013									(FV) Hedge	MCh$		MCh$		MCh$
Derivatives held-for-hedging
Foreign currency forwards	FV		82		284		5,365		FV		27		—		(827	)
Foreign currency swaps									FV		—		2,235		2,342
Interest rate swaps	FV		2,978		24		838		FV		358		3,161		(5,010	)

Subtotal			3,060		308		6,203				385		5,396		(3,495	)

Foreign currency forwards	CF		—		1,379		172		CF		6		793		(168	)
Foreign currency swaps									CF		3,171		1,027		450
Interest rate swaps	CF		2,140		1,973		(1,748	)	CF		58		4,241		4,272

Subtotal			2,140		3,352		(1,576	)			3,235		6,061		4,554


Total derivatives held-for-hedging			5,200		3,660		4,627				3,620		11,457		1,059

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


	Cash Flows (CF) or	Fair Value							Cash Flows (CF) or	Fair Value
	Fair Value	Assets		Liabilities		Gain/(loss)			Fair Value	Assets		Liabilities		Gain/(loss)
As of December 31, 2013	(FV) Hedge	MCh$		MCh$		MCh$
As of December 31, 2014									(FV) Hedge	MCh$		MCh$		MCh$
Derivatives held-for-hedging
Foreign currency forwards	FV		27		—		(827	)	FV		—		—		—
Foreign currency swaps	FV		—		2,235		2,342		FV		4,343		3,942		6,070
Interest rate swaps	FV		358		3,161		(5,010	)	FV		2,532		2,466		(2,637	)

Subtotal			385		5,396		(3,495	)			6,875		6,408		3,433


Foreign currency forwards	CF		6		793		(168	)	CF		15		6,612		(13,644	)
Foreign currency swaps	CF		3,171		1,027		450		CF		1,775		192		(678	)
Interest rate swaps	CF		58		4,241		4,272		CF		120		5,322		(288	)

Subtotal			3,235		6,061		4,554				1,910		12,126		(14,610	)

Total derivatives held-for-hedging			3,620		11,457		1,059				8,785		18,534		(11,177	)


	Cash Flows (CF) or	Fair Value							Cash Flows (CF) or	Fair Value
	Fair Value	Assets		Liabilities		Gain/(loss)			Fair Value	Assets		Liabilities		Gain/(loss)
As of December 31, 2014	(FV) Hedge	MCh$		MCh$		MCh$
As of December 31, 2015									(FV) Hedge	MCh$		MCh$		MCh$
Derivatives held-for-hedging
Foreign currency forwards	FV		—		—		—		FV		395		1,236		3,500
Foreign currency swaps	FV		4,343		3,942		6,070		FV		1,670		4,452		4,227
Interest rate swaps	FV		2,532		2,466		(2,637	)	FV		3,140		3,234		(3,564	)

Subtotal			6,875		6,408		3,433				5,205		8,922		4,163


Foreign currency forwards	CF		15		6,612		(13,644	)	CF		2,635		10,744		(9,772	)
Foreign currency swaps	CF		1,775		192		(678	)	CF		23,698		15,428		1,028
Interest rate swaps	CF		120		5,322		(288	)	CF		—		3,914		(1,429	)

Subtotal			1,910		12,126		(14,610	)			26,333		30,086		(10,173	)

Total derivatives held-for-hedging			8,785		18,534		(11,177	)			31,538		39,008		(6,010	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~28—~~28 - PROVISION FOR LOAN LOSSES

~~The changes in provision for loan losses recorded on the income statement for the years ended December 31, 2012, 2013 and 2014 is as follows:~~

The changes in provision for loan losses recorded on the income statement for the years ended December 31, 2013, 2014 and 2015 is as follows:


				For the year ended December 31, 2012
				Loans and receivables from customers
	Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total
	MCh$			MCh$			MCh$			MCh$			MCh$
Recognized provision:
Individually evaluated		(83	)		(47,405	)		—			(2	)		(47,490	)
Collectively evaluated		—			(15,861	)		(6,480	)		(49,719	)		(72,060	)

Charge to income for provisions recognized		(83	)		(63,266	)		(6,480	)		(49,721	)		(119,550	)(*)

Released provisions:
Individually evaluated		416			31,930			—			2			32,348
Collectively evaluated		—			4,687			5,995			10,068			20,750

Credit to income for provisions used		416			36,617			5,995			10,070			53,098	(*)

Recovery of assets previously written-off		—			3,824			1,039			10,014			14,877

Net charge to income		333			(22,825	)		554			(29,637	)		(51,575	)

																For the year ended December 31, 2013
				For the year ended December 31, 2013												(changes in provision)
				Loans and receivables from customers															Loans and receivables from customers
	Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total			Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Recognized provision:
Individually evaluated		(1,054	)		(193,586	)		—			—			(194,640	)		(1,054	)		(193,586	)		—			—			(194,640	)
Collectively evaluated		—			(29,038	)		(7,602	)		(100,783	)		(137,423	)		—			(29,038	)		(7,602	)		(100,783	)		(137,423	)


Charge to income for provisions recognized		(1,054	)		(222,624	)		(7,602	)		(100,783	)		(332,063	)(*)		(1,054	)		(222,624	)		(7,602	)		(100,783	)		(332,063	)(*)


Released provisions:
Individually evaluated		1,086			148,563			—			—			149,649			1,086			148,563			—			—			149,649
Collectively evaluated		—			14,027			4,604			44,244			62,875			—			14,027			4,604			44,244			62,875


Credit to income for provisions used		1,086			162,590			4,604			44,244			212,524	(*)		1,086			162,590			4,604			44,244			212,524	(*)


Recovery of assets previously written-off		—			5,037			1,627			10,803			17,467			—			5,037			1,627			10,803			17,467


Net charge to income		32			(54,997	)		(1,371	)		(45,736	)		(102,072	)		32			(54,997	)		(1,371	)		(45,736	)		(102,072	)


																For the year ended December 31, 2014
																(changes in provision)
																			Loans and receivables from customers
																Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total
																MCh$			MCh$			MCh$			MCh$			MCh$
Recognized provision:
Individually evaluated																	(269	)		(133,767	)		—			—			(134,036	)
Collectively evaluated																	—			(45,398	)		(10,198	)		(138,902	)		(194,498	)


Charge to income for provisions recognized																	(269	)		(179,165	)		(10,198	)		(138,902	)		(328,534	)(*)


Released provisions:
Individually evaluated																	141			91,686			—			—			91,827
Collectively evaluated																	—			22,710			5,349			56,431			84,490


Credit to income for provisions used																	141			114,396			5,349			56,431			176,317	(*)


Recovery of assets previously written-off																	—			9,321			1,277			14,347			24,945


Net charge to income																	(128	)		(55,448	)		(3,572	)		(68,124	)		(127,272	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


																For the year ended December 31, 2015
				For the year ended December 31, 2014												(changes in provision)
				Loans and receivables from customers															Loans and receivables from customers
	Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total			Loans and receivables from banks			Commercial loans			Mortgage Loans			Consumer Loans			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Recognized provision:
Individually evaluated		(269	)		(133,767	)		—			—			(134,036	)		(121	)		(203,482	)		—			—			(203,603	)
Collectively evaluated		—			(45,398	)		(10,198	)		(138,902	)		(194,498	)		—			(41,465	)		(15,019	)		(138,651	)		(195,135	)


Charge to income for provisions recognized		(269	)		(179,165	)		(10,198	)		(138,902	)		(328,534	)(*)		(121	)		(244,947	)		(15,019	)		(138,651	)		(398,738	)(*)


Released provisions:
Individually evaluated		141			91,686			—			—			91,827			180			115,698			—			—			115,878
Collectively evaluated		—			22,710			5,349			56,431			84,490			—			12,401			15,396			65,430			93,227


Credit to income for provisions used		141			114,396			5,349			56,431			176,317	(*)		180			128,099			15,396			65,430			209,105	(*)


Recovery of assets previously written-off		—			9,321			1,277			14,347			24,945			—			6,905			1,875			11,105			19,885


Net charge to income		(128	)		(55,448	)		(3,572	)		(68,124	)		(127,272	)		59			(109,943	)		2,252			(62,116	)		(169,748	)

(*)	The amounts disclosed in the Consolidated Statements of Cash Flows are detailed below:

   2012    2013    2014
   MCh$    MCh$    MCh$
Recognized provision
   (119,550 )    (332,063 )    (328,534 )
Released provisions
   53,098       212,524       176,317






(66,452 ) (119,539 ) (152,217 )

~~The break down by type of loan, whether assessed collectively or individually, for established and released provision amounts, respectively, is as follows:~~


	2013			2014			2015
	MCh$			MCh$			MCh$

Charge to income for provisions recognized		(332,063	)		(328,534	)		(398,738	)
Credit to income for provisions used		212,524			176,317			209,105

		(119,539	)		(152,217	)		(189,633	)

   For the year ended December 31, 2012.
   Established Provision Released Provision
   Individual
Analysis Group
Analysis Total Individual
Analysis    Group
Analysis    Total
   MCh$ MCh$ MCh$ MCh$    MCh$    MCh$
Commercial Loans
   (47,405 ) (15,861 ) (63,266 ) 31,930       4,687       36,617
Mortgage Loans
   —      (6,480 ) (6,480 ) —         5,995       5,995
Consumer Loans
   (2 ) (49,719 ) (49,721 ) 2       10,068       10,070






(47,407 ) (72,060 ) (119,467 ) 31,932    20,750    52,682






Banks
(83 ) —      (83 ) 416    —      416






(47,490 ) (72,060 ) (119,550 ) 32,348    20,750    53,098

The break down by type of loan, whether assessed collectively or individually, for established and released provision amounts, respectively, is as follows:


	For the year ended December 31, 2013.
	Established Provision									Released Provision
	Individual Analysis			Group Analysis			Total			Individual Analysis		Group Analysis		Total		Note
	MCh$			MCh$			MCh$			MCh$		MCh$		MCh$
Commercial Loans		(193,586	)		(29,038	)		(222,624	)		148,563		14,027		162,590
Mortgage Loans		—			(7,602	)		(7,602	)		—		4,604		4,604
Consumer Loans		—			(100,783	)		(100,783	)		—		44,244		44,244

		(193,586	)		(137,423	)		(331,009	)		148,563		62,875		211,438		10


Banks		(1,054	)		—			(1,054	)		1,086		—		1,086		9

		(194,640	)		(137,423	)		(332,063	)		149,649		62,875		212,524

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

   For the year ended December 31, 2013.
   Established Provision Released Provision
   Individual
Analysis Group
Analysis Total Individual
Analysis    Group
Analysis    Total    Note
   MCh$ MCh$ MCh$ MCh$    MCh$    MCh$
Commercial Loans
   (193,586 ) (29,038 ) (222,624 ) 148,563       14,027       162,590
Mortgage Loans
   —      (7,602 ) (7,602 ) —         4,604       4,604
Consumer Loans
   —      (100,783 ) (100,783 ) —         44,244       44,244







(193,586 ) (137,423 ) (331,009 ) 148,563    62,875    211,438    10







Banks
(1,054 ) —      (1,054 ) 1,086    —      1,086    9







(194,640 ) (137,423 ) (332,063 ) 149,649    62,875    212,524


	For the year ended December 31, 2014.																	For the year ended December 31, 2014.
	Established Provision									Released Provision								Established Provision									Released Provision
	Individual Analysis			Group Analysis			Total			Individual Analysis		Group Analysis		Total		Note		Individual Analysis			Group Analysis			Total			Individual Analysis		Group Analysis		Total		Note
	MCh$			MCh$			MCh$			MCh$		MCh$		MCh$				MCh$			MCh$			MCh$			MCh$		MCh$		MCh$
Commercial Loans		(133,767	)		(45,398	)		(179,165	)		91,686		22,710		114,396				(133,767	)		(45,398	)		(179,165	)		91,686		22,710		114,396
Mortgage Loans		—			(10,198	)		(10,198	)		—		5,349		5,349				—			(10,198	)		(10,198	)		—		5,349		5,349
Consumer Loans		—			(138,902	)		(138,902	)		—		56,431		56,431				—			(138,902	)		(138,902	)		—		56,431		56,431

		(133,767	)		(194,498	)		(328,265	)		91,686		84,490		176,176		10		(133,767	)		(194,498	)		(328,265	)		91,686		84,490		176,176		10


Banks		(269	)		—			(269	)		141		—		141		9		(269	)		—			(269	)		141		—		141		9

		(134,036	)		(194,498	)		(328,534	)		91,827		84,490		176,317				(134,036	)		(194,498	)		(328,534	)		91,827		84,490		176,317


																		For the year ended December 31, 2015.
																		Established Provision									Released Provision
																		Individual Analysis			Group Analysis			Total			Individual Analysis		Group Analysis		Total		Note
																		MCh$			MCh$			MCh$			MCh$		MCh$		MCh$
Commercial Loans																			(203,482	)		(41,465	)		(244,947	)		115,698		12,401		128,099
Mortgage Loans																			—			(15,019	)		(15,019	)		—		15,396		15,396
Consumer Loans																			—			(138,651	)		(138,651	)		—		65,430		65,430

																			(203,482	)		(195,135	)		(398,617	)		115,698		93,227		208,925		10


Banks																			(121	)		—			(121	)		180		—		180		9

																			(203,603	)		(195,135	)		(398,738	)		115,878		93,227		209,105

In management’s opinion, the credit risk provisions established cover all losses that may arise from estimated incurred loan losses, based on the information examined by the Bank and its subsidiaries.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~29—~~29 - PERSONNEL SALARIES EXPENSES

Personnel salaries expenses for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 are as follows:


										2013			2014			2015
	2012			2013			2014			MCh$			MCh$			MCh$
	MCh$			MCh$			MCh$
Personnel remunerations		(72,430	)		(102,967	)		(131,872	)		(102,967	)		(131,872	)		(126,933	)
Bonuses and gratifications/awards		(37,566	)		(45,009	)		(57,326	)		(45,009	)		(57,326	)		(54,864	)
Severance indemnities		(4,429	)		(3,026	)		(10,231	)		(3,026	)		(10,231	)		(4,220	)
Training Expenses		(753	)		(955	)		(1,093	)		(955	)		(1,093	)		(416	)
Other personnel expenses		(5,536	)		(13,052	)		(18,790	)		(13,052	)		(18,790	)		(16,321	)


Total		(120,714	)		(165,009	)		(219,312	)		(165,009	)		(219,312	)		(202,754	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~30—~~30 - ADMINISTRATION EXPENSES

Administration expenses for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 are as follows:


										2013			2014			2015
	2012			2013			2014			MCh$			MCh$			MCh$
	MCh$			MCh$			MCh$
Maintenance and repair of fixed assets		(5,372	)		(8,178	)		(13,296	)		(8,178	)		(13,296	)		(14,382	)
Office rentals		(9,853	)		(14,297	)		(20,986	)		(14,297	)		(20,986	)		(21,238	)
Equipment rentals		(2,925	)		(3,088	)		(4,644	)		(3,088	)		(4,644	)		(3,943	)
Insurance premiums		(4,470	)		(10,996	)		(17,949	)		(10,996	)		(17,949	)		(17,143	)
Office supplies		(1,019	)		(1,202	)		(1,595	)		(1,202	)		(1,595	)		(1,478	)
IT and communications expense		(5,252	)		(7,583	)		(11,262	)		(7,583	)		(11,262	)		(12,059	)
Lighting, heating and other services		(3,657	)		(4,697	)		(5,545	)		(4,697	)		(5,545	)		(6,064	)
Security Service and transportation of securities		(1,453	)		(2,213	)		(1,994	)		(2,213	)		(1,994	)		(1,810	)
Public relations expense and staff travel expenses		(1,979	)		(1,935	)		(2,675	)		(1,935	)		(2,675	)		(2,573	)
Legal and Notary Costs		(475	)		(1,435	)		(795	)		(1,435	)		(795	)		(2,583	)
Technical report fees		(10,099	)		(12,997	)		(31,963	)		(12,997	)		(31,963	)		(30,908	)
Professional services fees		(599	)		(1,233	)		(2,366	)		(1,233	)		(2,366	)		(1,616	)
Securities classification fees		(66	)		(180	)		(121	)		(180	)		(121	)		(114	)
Penalties		(487	)		(165	)		(131	)
Fines											(165	)		(131	)		(119	)
Comprehensive management ATMs		(2,634	)		(2,649	)		(2,448	)		(2,649	)		(2,448	)		(2,422	)
Other administration expenses		(8,829	)		(16,620	)		(26,361	)		(16,620	)		(26,361	)		(19,495	)

Subtotal		(59,169	)		(89,468	)		(144,131	)		(89,468	)		(144,131	)		(137,947	)

Subcontracted services
Data processing		(6,580	)		(9,526	)		(11,688	)		(9,526	)		(11,688	)		(13,250	)
Sales		(168	)		(307	)		(779	)		(307	)		(779	)		(718	)
Loan valuation		(62	)		(35	)		(3,674	)		(35	)		(3,674	)		(482	)
Others		(5,061	)		(8,455	)		(10,665	)		(8,455	)		(10,665	)		(7,463	)

Subtotal		(11,871	)		(18,323	)		(26,806	)		(18,323	)		(26,806	)		(21,913	)

Board of Directors Expenses
Remunerations		(991	)		(1,343	)		(1,567	)		(1,343	)		(1,567	)		(1,493	)
Other Board of Directors expenses		(38	)		—			(25	)		—			(25	)		—

Subtotal		(1,029	)		(1,343	)		(1,592	)		(1,343	)		(1,592	)		(1,493	)

Marketing and advertising		(7,494	)		(6,672	)		(7,205	)		(6,672	)		(7,205	)		(6,938	)

Real estate taxes, contributions and levies		(9,220	)		(23,808	)		(33,406	)		(23,808	)		(33,406	)		(43,312	)
Real estate taxes		(356	)		(352	)		(416	)		(352	)		(416	)		(391	)
Patents		(822	)		(818	)		(817	)		(818	)		(817	)		(829	)
Other taxes(*)		(5,266	)		(18,795	)		(27,145	)		(18,795	)		(27,145	)		(36,501	)
Contributions to SBIF		(2,776	)		(3,843	)		(5,028	)		(3,843	)		(5,028	)		(5,591	)

Subtotal		(9,220	)		(23,808	)		(33,406	)		(23,808	)		(33,406	)		(43,312	)


Total		(88,783	)		(139,614	)		(213,140	)		(139,614	)		(213,140	)		(211,603	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

(*)

This amount corresponds primarily to taxes other than income taxes that affect Banco CorpBanca Colombia and its subsidiaries (Colombian segment). They are taxes on local financial transactions, ongoing performance of commercial activities or services, non-discountable value added tax and equity tax, among others.

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

NOTE ~~31—~~31 - DEPRECIATION, AMORTIZATION AND IMPAIRMENT

a)	Depreciation and amortization expenses as of December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 were as follows:


	As of December 31,											As of Decembre 31,
	2012			2013			2014			Note		2013			2014			2015			Note
	MCh$			MCh$			MCh$					MCh$			MCh$			MCh$
Depreciation and amortization
Depreciation of property, plant and equipment		(7,192	)		(12,680	)		(13,827	)		14		(12,680	)		(13,827	)		(11,667	)	14
Amortization of intangible assets		(10,900	)		(29,608	)		(37,786	)		13		(29,608	)		(37,786	)		(31,238	)	13


Balances		(18,092	)		(42,288	)		(51,613	)				(42,288	)		(51,613	)		(42,905	)

b)	Impairment losses for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 are detailed below:


								For the years ended December 31,
	For the years ended December 31,							2013		2014			2015
	2012		2013		2014			MCh$		MCh$			MCh$
	MCh$		MCh$		MCh$
Impairment of financial investments available-for-sale		—		—		—			—		—			—
Impairment of financial investments held-to-maturity		—		—		—			—		—			—

Subtotal financial assets (a)		—		—		—
Subtotal financial assets (i)									—		—			—

Impairment of property, plant and equipment (1)		—		—		(1,308	)

Impairment of property, plant and equipment (*)									—		(1,308	)		(332	)
Impairment of Goodwill and Intangibles		—		—		—			—		—			—

Subtotal Non-financial assets (b)		—		—		(1,308	)
Subtotal Non-financial assets (ii)									—		(1,308	)		(332	)


Total		—		—		(1,308	)		—		(1,308	)		(332	)

~~(1)~~(*)

Impairment for technological obsolescence as a result of new regulations on ATMs (decree 222 dated October 30, 2013 from the Ministry of Internal Affairs and Public Safety of Chile), accounted for in accordance with IAS36 Impairment of Assets. See note 14Property, Plant and Equipment, letterb).

At each reporting date, Banco CorpBanca and its subsidiaries (the Group) will evaluate whether there is any indication of impairment of any asset. Should any such indication exist, or when impairment testing is required, the entity will estimate the asset’s recoverable amount.

~~(a)~~

Financial assets

As of each reporting date, CorpBanca and its subsidiaries assess whether there is objective evidence that a financial asset or a group of financial assets may be impaired. Financial assets or asset groups are considered impaired only if there is objective evidence of impairment as a result of one or more loss events that occurred after the initial recognition of the asset and the loss event had an impact on the estimated future cash flows of the financial asset or asset group that can be reliably estimated. Evidence of impairment may include, among other examples, debtors or a group of debtors with significant financial difficulties, non-compliance or delinquency in principal or interest payments, the potential to declare bankruptcy or undergo another form of financial reorganization, or observable data that indicate a measureable reduction in estimated future cash flows, such as adverse changes in the status of past due payments or in the economic conditions related to such non-compliance.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~Non-financial assets~~¹⁵

ii.

Non-financial assets¹¹

The carrying amounts of non-financial assets, excluding investment property and deferred taxes, are reviewed regularly, or at least every reporting period, to determine whether indications of impairment exist. If such indication exists, the recoverable amount of the asset is then estimated. The recoverable amount of an asset is the greater of the fair value less costs to sell, whether for an asset or a cash generating unit, and its value in use. ~~That~~The recoverable amount is determined for an individual asset, unless the asset does not generate cash flows that are largely independent from the cash flows of other assets or asset groups.

The entity will conduct impairment testing on an annual basis for intangible assets with indefinite useful lives, as well as intangible assets that are not yet available for use, by comparing their carrying amount with their recoverable amount. Impairment testing can be carried out at any time during the year, as long as it takes place at the same time each year. Impairment testing of different intangible assets can take place on different dates. However, if that intangible asset had been recognized initially during the current year, it will be tested for impairment before the year ends.

Impairment of goodwill is determined by evaluating the recoverable amount of each cash generating unit (or group) to which goodwill is allocated. Where the recoverable amount of the cash generating unit is less than its carrying amount, an impairment loss is recognized; goodwill acquired in a business combination shall be allocated of the acquisition date among the CGUs or group of CGUs of the acquirer that are expected to benefit from the synergies of the business combination, regardless of whether other of the acquiree’s assets or liabilities are allocated to these units. Impairment losses relating to goodwill cannot be reversed in future periods.

In accordance with IAS 36 “Impairment of Assets”, annual impairment testing is required for a CGU to which goodwill has been allocated and for intangible assets with indefinite useful lives. Different cash generating units and different intangible assets can be tested for impairment at different times during the year as long as they are carried out at the same time each year.

Upon evaluating whether any indication of impairment exists for an asset, the entity shall consider at least the following factors:

External sources of information:

(a)	During the period, an asset’s market value has declined significantly more than would be expected as a result of the passage of time or normal use.

(b)	Adverse conditions in the technological, market, economic or legal environment.

(c)	Increase in interest rates.

(d)	Market value of equity lower than carrying amount.

Internal sources of information:

(a)	Evidence of obsolescence of physical damage of an asset.

(b)	Plans to discontinue or restructure the operation to which an asset belongs, plans to dispose of an asset before the previously expected date, and reassessing the useful life of an asset as finite rather than indefinite.

(c)	Decrease or expected decrease in an asset’s performance.

In the event of objective impairment, the carrying amount of an asset will be reduced ~~until~~to the recoverable amount if, and only if, the recoverable amount is less than the carrying amount. This reduction is an impairment loss.

Impairment losses are recognized immediately in the Statement of Income unless the asset is accounted for at revalued value in accordance with other standards. Any impairment loss in revalued assets is treated as a decrease in the revaluation made in accordance with that standard. When the estimated amount of an impairment loss is greater than the carrying amount of the asset to which it is related, the entity will recognize a liability if, and only if, it were obligated to do so by another standard.

¹¹	(Goodwill and intangible assets with definite/indefinite lives) were reviewed for indicator of impairment at December 31, 2015. No indicators of impairment were present.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

After recognizing an impairment loss, charges for depreciating the asset are adjusted for future periods in order to distribute the asset’s revised carrying amount, less its potential residual value, systematically over the remaining useful life.

¹⁵	~~(Goodwill and intangible assets with definite/indefinite lives) were reviewed for indicator of impairment at December 31, 2014. No indicators of impairment were present.~~

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

If an impairment loss is recognized, the deferred tax assets and liabilities related to it will also be determined by comparing the asset’s revised carrying amount to its tax basis in accordance with IAS 12 Income Taxes.

Impairment testing of goodwill and intangible assets with indefinite useful lives at December 31, ~~2014~~2015

1.	Goodwill Impairment Testing

The Group’s business combinations began in the first half of 2012, with CorpBanca Chile’s acquisition of Banco Santander Colombia S.A. from Banco Santander Spain¹⁶¹². The acquiree’s name was changed to Banco CorpBanca Colombia S.A. Following a capital increase in which CorpBanca Chile did not contribute the same proportion as its initial interest, CorpBanca Chile held a 66.27% interest in CorpBanca Colombia and subsidiaries.


Aspects	Acquirer	Acquired
Entities	CorpBanca	Banco Santander (SIVAL)
Country (residence)	Chile	Colombia

In the same period, Banco CorpBanca Colombia acquired 94.50% of the shares entitled to vote of Corpbanca Investment Trust Colombia S.A.¹³


Aspects	Acquirer	Acquired
Entities	CorpBanca Colombia	CITRUST
Country (residence)	Colombia	Colombia

Subsequently, during the second half of 2013, Banco CorpBanca Colombia S.A. acquired and took control of Helm Bank and subsidiaries, (this acquisition also enabled it to enter the Panamanian market), while CorpBanca Chile acquired 80% of the shares of Helm Corredor de Seguros S.A.Lastly, on June 1, 2014, the merger between Banco CorpBanca Colombia and Helm Bank S.A. was completed in order to operate as one single bank, taking advantage of the synergies generated as a result of each bank’s area of expertise and target business segments.


Aspects	Acquirer	Acquired
Entities	CorpBanca Colombia	Helm Bank and subsidiaries
Country (residence)	Colombia	Colombia; Panamá
Entities	CorpBanca	Helm Corredores de Seguros
Country (residence)	Chile	Colombia

This is framed within the Group’s long-term strategy, which includes elements such as: To expand geographically; to increase returns from individual segments while maintaining low risk levels; to diversify and improve funding sources; to lead in costs and operating efficiency; to obtain synergies that promote growth; to cultivate a corporate culture that enables its strategy to be applied, etc.

The business combinations summarized in the preceding paragraph generated goodwill and intangible assets that must be tested for impairment in accordance with current regulations. They were allocated to the Colombia CGU, which is also identified as an operating segment¹⁷¹⁴ (See Note 4Operating Segments).

¹²	This transaction also included the acquisition of Santander Investment Valores Colombia S.A. (currently CorpBanca Investment Valores Colombia S.A.) and Santander Investment Trust Colombia S.A. (currently CorpBanca Investment Trust Colombia S.A.).

¹³	Company that became a subsidiary subsequent to a business combination between Banco Santander Colombia and CorpBanca Chile.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

The following table details the intangible assets with indefinitive lives for 2015, 2014 and 2013:


	Note		2012		2013		2014		Note		2013		2014		2015
			MCh$		MCh$		MCh$				MCh$		MCh$		MCh$
Trademarks				1,355		1,298		1,206				1,298		1,206		988
Licenses		13		49,630		50,567		46,797		13		50,567		46,797		42,277
Database				493		500		463				500		463		381
Goodwill		13		214,540		420,623		386,180		13		420,623		386,180		345,620

Total				266,018		472,988		434,646				472,988		434,646		389,266

The Group has conducted annual impairment testing as of December 31, 2015, 2014 and 2013. Upon evaluating whether indications of impairment exist, the relationship between its market capitalization and the carrying amount of its equity are among the main factors considered. The Group’s market capitalization is greater than the carrying amount of its equity (Price/BV around 2.2 and 2.3 times, respectively).

The variables evaluated in the projections used in the Colombia CGU take into account aspects such as:

External Variables

Gross Domestic Product (GDP)

Colombia has grown steadily since 2000 forward. In ~~general,~~ the ~~Colombian banking industry should experience sustained~~years before the crisis of 2008, GDP growth was maintained at values between 4.5 and 7%, which were subsequently affected by the subprime crisis, and then continued in ~~loan portfolios, backed by positive macroeconomic outlooks~~2011 with growth of between 4 and ~~opportunity for growth. This is based mainly on the fact that the Colombian economy has reported sustained growth over the last four years, which~~4, 5%. 2015 is expected to ~~continue~~end with a growth of about 3%, because of a general slowdown in ~~coming~~the Latin American economy, returning to values above 4% in 2017.

Unemployment

The unemployment rate in Colombia is a good indicator of economic development that have sustained in the past 15 years. Starting in 2001 with an unemployment rate of 15%, which has decreased to 9% in 2015.

Inflation and exchange rate

These variables have not been ignored by the improvement in the last 15 years. Except for the last two years that inflation has increased slightly to 6%. Since 2000, levels have declined and, in general, have remained in line with the inflation target of the Central Bank of Colombia.

Rising inflation in Colombia (2015/2014) is principally due to a devaluation of the Colombian peso, reduction of foreign trade and local economic slowdown. This, ~~situation is reflected primarily~~coupled with climatic effects (“El Niño”¹⁵) has punished crops increasing food prices 62% increase in ~~current~~the previous year.

Economists expect this negative economic phenomenon will not last more than two years, counting on the end of El Niño in the middle of 2016, the stabilization of inflation to normal levels and the strengthening of GDP growth due to the competitive advantages obtained by the devaluation generated in recent months and the normalization of ~~around 4.4%~~domestic demand.

Economic Sector

Regarding the most dynamic economic sectors, these were as follows: 8.7% construction, mining and quarrying with 4.2%, an inflation rate of around 3.0%, record low unemployment rates of 7.86%, increased bank usage rates that still leave room for growth, positive expectations from the construction sector that would entail expanding mortgagecommerce, repairs, restaurants and ~~commercial loans, the latter of which is that industry’s main product.~~

hotels with 3.8% and financial institutions, real estate and business services with 3.6%.

¹⁶	This transaction also included the acquisition of Santander Investment Valores Colombia S.A. (currently CorpBanca Investment Valores Colombia S.A.) and Santander Investment Trust Colombia S.A. (currently CorpBanca Investment Trust Colombia S.A.).

¹⁷¹⁴	The Group determined that its operating segments also correspond to its reportable segments. As a result, no operating segments were aggregated to create reportable segments.

¹⁵

El Niño is an abnormal weather pattern that is caused by the warming of the Pacific Ocean near the equator, off the coast of South America. This occurs when the normal trade winds weaken (or even reverse), which lets the warm water that is usually found in the western Pacific flow instead towards the east. This warm water displaces the cooler water that is normally found near the surface of the eastern Pacific, setting off atmospheric changes that affect weather patterns in many parts of the world.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~CorpBanca’s market share~~

Directly responsible for the momentum has been consumption registering a variation of 2.9% due to the growth of household consumption (3.3%) and the expenditures of government (1.8%) ; meanwhile, the sector with negative demand was that of the gross fixed capital formation wich suffered a sharp slowdown.

Portfolio

The growth of the portfolio of Colombian financial institutions is positively correlated with GDP growth (0.72) therefore it has grown and accompanied the development of the economy.

As for the composition of growth in the banking book it shows that 10 years ago, it was led by commercial and consumer loans (microloans have historically shown higher volatility). Currently, the credit growth rate has converged at approximately 15%.

Interest Rate

As for interest rates when bank penetration has been growing and competitive, they have been thus reducing also the spread of loans rates and deposits.

The intervention rate for the end of 2015 is expected at around the 4.5% level, half the expected rate for commercial loans.

Bank solvency index

The minimum solvency ratio required by the regulation in Colobia is 9%, demonstrating the banking industry showed a steady increase between 2000 and 2015 (11.7% and 15.2% respectively).

Banking services

Colombia in the item financial inclusion ranks second among a group of 55 emerging economies, but still has barriers, use and access issues that keep to Colombia at a disadvantage compared to other countries.

The last measurement to establish the level of financial inclusion has to Colombia in the 57th, Korea in first place and Brazil in 29th place (among 82 countries). This analysis also indicates the barriers to further financial inclusion (63rd); in access to financial services (54th) and use of the products (46th).

According to the Banking Association in Colombia (Asobancaria) today throughout the territory of Colombia has coverage of banking services. However, 51% of savings accounts are inactive, and another percentage is only used for state subsidies and that money is fully withdrawn when accredited.

In turn, financial depth, which indicates the level of access to credit with Colombians last October reached 43.3%, according to the Financial Superintendence of Colombia.

In terms of banking services, Colombia is located very close to the Brazilian rates (around 60%) but with a significant growth potential and is expected to ~~report sustained~~reach the level of Chile (around 80%) in less than 10 years, due to high levels of growth that have and will loan portfolios of consumer, commercial, mortgage and microcredit.

Taxes

The current rates for corporate taxes, according to the latest tax reform approved by the government of Colombia in ~~upcoming years, rising from approximately 2.8% in 2013 to close to 7% by 2019.~~

December 2014 were applied.

INTENAL VARIABLES

~~The entity posts sound solvency figures, which gives it room for reinvestment and, consequently, improved conditions for growth.~~

~~In terms of internal information sources, management based~~Management, prepared its projections onconsidering the following aspects: ~~Revenue was forecasted by taking into account~~Revenues were projected considering the historical growth, which is consistent with the level of growth experienced by the Colombian GDP, the expected growth ~~economic growth expectations~~of the economy, and the expected increase in market share as a result of ~~the mergers, as well as~~merger and growth expectations for the Colombian banking ~~industry~~industry.

It is expected that the market share CorpBanca has sustained will grow in ~~general.~~the coming years, in loans and deposits, for the following reasons:

a. Colombia represents about 7% of production in Latin America, fourth largest economy in the region.

b. Colombia should grow above the average of Latin America in the next 5 years.

c. GDP has grown consistently over the past seven years.

d. 80% of GDP is domestic demand.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

e. The growth of loans and deposits is presented aligned to the expectation of market growth, which is explained by low levels of banking penetration in Colombia

The company has strong solvency figures which gives margin to reinvest and improve the conditions for growth.

Expenses ~~were forecasted in a similar manner, using~~and revenues are projected similarly, ie according to historical growth presented by the industry, adjusted ~~to account~~ for synergies and economies of scale generated by ~~the~~ mergers described ~~above.~~above, which are characterized by the following:

a. The main income attributable to: interest (generated by average portfolio balances in relation to their rate), service fee (transactions generated by product) and results from financial operations (obtained by operation of financial instruments).

~~Corporate tax projections use current tax rates based on~~

b. Expenses primarily relate to interest (paid by deposit products in relation to agreed rates), provisions for credit risk (associated with the ~~Colombian tax reform passed in December 2014.~~

loan portfolio) and other expenses (which include administrative expenses, personnel and amortization).

The recoverable amount of the CGU Colombia, ~~CGU~~ has been determined using the asset valuation approach called income approach, ~~for valuing assets, relying mainly on~~using the methodology of the dividend discount ~~model.~~model main method. This methodology considers the ~~cash~~ flow that would generate dividends paid to ~~be generated by dividends distributed to its~~ shareholders onin a perpetual projection horizon, discounted at ~~their~~the rate of equity cost ~~rate as~~at the date of ~~the~~ valuation, ~~date in order to be able to estimate~~facilities and estimated the economic value of the ~~company’s equity,~~assets of the company, using ~~cash~~ flow projections cash derived from financial ~~assumptions~~budgets approved by ~~senior~~ management and ~~that covers~~covering a period of ~~five~~5 years of explicit projection ~~(until 2019)~~(2020), a perpetual time horizon, ~~and approximate~~assuming a profit growth ~~in profits~~ of approximately 5% in perpetuity ~~(beginning~~(a starting in ~~2019)~~2021).

Senior ~~management considers~~Management believes that this growth rate ~~to be~~is justified by the acquisition of new subsidiaries in Colombia and the ~~aspects explained~~issues discussed above, ~~which will enable it to attain greater~~allowing capture more market ~~share~~ and other ~~potentialities.~~potentials.

Key assumptions used in calculating the recoverable amount

The values assigned to the key assumptions are an evaluation by senior management of future industry trends based on both external and internal sources. The key assumptions used in calculating the recoverable amount are summarized below and detailed in subsequent sections:


Key Assumptions	2014		2013		2015		2014
Projection period and perpetuity (years)		5		5
Projection period						5.0		5.0
Perpetuity growth rates (%)		5		5		5.0		5.0
Projected inflation rates (%)		3		3		3.0		3.0
Discount rate (%)¹⁸		12.3		12.5
Discount rate (%)						12.6		12.3
Tax rate (%)		40.4		33.5		41.8		40.4
Solvency index limit (%)		10		10		10.0		10.0

Goodwill

a.	Projection period and perpetuity.

The recoverable amount has been determined using cash flows based on six -month budgets approved by senior management with a discount rate of around 12%. Cash flows beyond this time horizon have been extrapolated using a growth rate of around 5.0%. This growth rate does not exceed the average long-term growth rate for the market in which the CGU operates.

¹⁸	~~An average discount rate is used since the estimate employs different tax rates because of the tax reform passed in Colombia in December 2014.~~

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Cash flow projections correspond to 5 years (until 2019) after which time a present value is calculated for cash flows in perpetuity by normalizing cash flows. This normalization is performed to increase the payment of dividends used in perpetuity without reducing the solvency ratio.

The growth rate of cash flows in perpetuity is approximately 5.0% nominal (represents an approximate excess of 2.0 percentage points over inflation). Projected inflation for Colombia is around 3.0%.

~~b. Loans~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and ~~deposits.~~2015 and for the years ended December 31, 2013, 2014 and 2015

Growth in perpetuity is 5% is based on future projections and their potential for short-term increase, which implies an increase in portfolio in the first five years near 15% and reducing it gradually to 5% by 2025.

b.	Loans and deposits.

Loans were projected considering an increase of around 15% annually and the deposit portfolio was projected on a correlated ~~basis.~~basis, both concepts aligned to the expectations of market growth and market share.

~~c. Income~~

Income

Determined by average balances (calculated with respect to gaining market share) of mortgage loans, credit cards, commercial loans and consumer loans.

Average growth rates until ~~2019~~2020 for interest income are around ~~17.5%~~16.3% while fee and commission income is close to ~~12.1%~~11.4%.

~~d. Costs.~~

In relation to the results generated on financial transactions growth of around 15.5%.

Costs.

Cost projections are determined primarily by average balances of time and demand deposits as well as other relevant components.

Interest expense (expenses related to deposits and taxes) demonstrate growth of ~~18.1%~~15.6% up to ~~2019.~~2020. Credit risk provisions grow around ~~18.0%~~18.3% and other expenses demonstrate growth of 5%.

~~e. Discount rate.~~

e.	Discount rate.

In order to estimate the discount rate (Ke) and the weighted average cost of capital, the capital asset pricing model was used as a framework. This models sets the rate demanded by shareholders (Ke) equal to the risk-free rate plus a premium that the investors expect to assume for the systematic risk inherent to the company.

The risk-free rate corresponds to U.S. treasury bonds, specifically US GT 30 and GOVT.

The beta measures the share price volatility for a company with respect to the general securities market. It reflects the market or systematic risk, as opposed to the company’s specific risk. We have selected a group of listed companies that operate in the Colombian banking industry. In the search for these indicators, we concentrated on companies whose main activities are similar. The betas of shares used for each of the comparable companies were taken from the Bloomberg platform. In order to adjust for the financial leverage effect of the beta of each company, the betas were “unlevered”, based on the current history of the comparable company and its debt-equity ratio to give the asset beta of each company.

Taxes are projected at a rate of ~~39% for 2015,~~ 40% for 2016, 42% for 2017, 43% and 43% for 2018 and ~~2019,~~2021, in accordance with the tax reform passed in Colombia in December 2014. For the ~~2013~~2015 period, a tax rate of 34% was used for the first three years and after that a rate of ~~33%, as set by the Colombian government.~~39%.

~~Because the~~The discount rate is a variable that has a considerable impact on results, sensitivity testing was performed for that ~~rate.~~rate, concluding that no reasonable change would negatively impact the results.

~~f. Dividend payments.~~

f.	Dividend payments.

Dividend payments were used to maximize the cash flows of shareholders with the restriction that solvency (technical capital to risk-weighted assets) did not go below 10% for projected cash flow. This did not exceed the solvency limits required by regulators, which are in line with the market and future growth forecasts.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Sensitivity to changes in key assumptions used

In determining the recoverable amount of the cash generating unit analyzed, upper management believes that no reasonable possible change in any of the aforementioned key assumptions would make the carrying amount of the unit significantly exceed its recoverable amount.

Results of Impairment Testing

The Bank concluded that the recoverable amounts of the assets tested exceed their respective carrying amounts. As a result of this analysis, senior management has not identified impairment.

2.	Impairment Testing of Intangible Assets with Indefinite Useful Lives

~~Licenses.~~License

The “with or without” methodology was used for the valuation, which reflects the difference between the values of the company based on the time it would take to obtain the intangible asset and, therefore, begin to receive cash flows. The key assumptions are detailed as follows:

a.	Period of time to obtain the license. A period of 18 months was defined as the time necessary to obtain a banking license and, therefore, begin to generate cash flows.

b.	Cash flows. The same flows used for the equity valuation model were used (i.e. dividend discount).

Discount rate: The cash flows were discounted at the same rate used in the equity valuation model described above. A spread of 1% is added for cash flows generated by this asset, which is in line with its nature and is presented as riskier than the average of the assets in the Statement of Financial Position.

As a result of this analysis, senior management has not identified impairment for this asset.

~~Trademarks.~~Trademark

The relief from royalty method was used, which considers the income attributable to the brands of Banco CorpBanca Colombia. It also considers a royalty equivalent to the percentage of income produced by the brands and the result of this cash flow is discounted to equity cost. The key assumptions are detailed as follows:

a.	Evolution of contribution margin. The assumptions that govern the evolution of income and costs are the same used in the valuation of CorpBanca’s economic equity.

b.	Tax Relief-From-Royalty. The royalty rate used is approximately 0.3%. The same tax rate described above is used.

c.	Marketing expenses. This uses the assumption that for the brand to continue to generate cash flows, marketing expenses must be incurred, specifically around 21% of results after the effects of the post-tax royalties.

As a result of this analysis, senior management has not identified impairment for this asset.

~~Databases.~~Database

For this asset, a value per user was estimated justified by the level of detail in the database and considering total customers for the Colombia segment.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

As a result of this analysis, senior management has not identified impairment for this asset.

Sensitivity to Changes in Key Assumptions Used

In determining the recoverable amount of the assets described above (in 2.1 to 2.3), senior management performed a sensitivity analysis under diverse scenarios and concluded that no reasonable possible change in any of the aforementioned key assumptions would make their carrying amount significantly exceed that amount.

~~CORPBANCA AND SUBSIDIARIES~~3. Recoverable Amount Disclosures for Non-Financial Assets

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

AsOn May 29, 2013 the IASB published “Amends to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets. The publication of ~~December 31, 2013 and 2014 and for~~IFRS 13 Fair Value Measurements amended certain disclosure requirements in IAS 36 Impairment of Assets with respect to measuring the ~~years ended December 31, 2012, 2013 and 2014~~

~~NOTE 32—OTHER OPERATING INCOME AND EXPENSES~~

~~a) Other operating income~~recoverable amount of impaired assets. However, one of the modifications to the disclosure requirements was more extensive than originally intended. The IASB has rectified this with the publication of these amendments to IAS 36.

The ~~detail~~amendments to IAS 36 removed the requirement to disclose the recoverable amount of ~~other operating income~~each cash-generating unit (group of units) for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit (group of units) was significant compared with the total carrying amount of goodwill or intangible assets with indefinite useful life of the entity. The amendments require an entity to disclose the recoverable amount of an individual asset (including goodwill) or a cash-generating unit to which the entity recognized or reversed deterioration during the reporting period. An entity shall disclose information about the fair value less costs to sell of an individual asset, including goodwill, or a cash-generating unit to which the entity recognized or reversed an impairment loss during the reporting period, including: (i) the level of the fair value hierarchy (IFRS 13), (ii) the valuation techniques used to measure fair value less costs to sell, and (iii) the key assumptions used in fair value measurement categorized within “Level 2” and “Level 3” of the fair value hierarchy. In addition, an entity should disclose the discount rate used when an entity recognized or reversed an impairment loss during the reporting period and the recoverable amount should be based on the fair value less costs to sell determined using a present value valuation technique. The amendments should be applied retrospectively for annual periods beginning on or after January 1, 2014. Earlier application is ~~as follows:~~permitted.

4. Others

   Note    2012    2013    2014
      MCh$    MCh$    MCh$
Revenues for assets received in lieu of payment

Assets received in lieu of payment provision released
      213       —         —
Gain on sales of assets received in lieu of payment
      2,686       1,921       2,226
Others
      36       71       645






Subtotal
2,935    1,992    2,871






Contingency provisions used
Other contingency provisions
20 b ) 6,606    57    2,749






Subtotal
6,606    57    2,749






Other Revenues
Gain on sales of property, plant and equipment
1,335    25,164    415
Compensation insurance companies
32    106    89






Subtotal
1,367    25,270    504






Leasing contributions revenue
1,473    1,591    2,181
Other operating income -Subsidiaries
1,271    1,146    2,561
Gain on sales of leased assets
444    334    604
Other operating income -Leasing
224    185    241
Insurance reimbursement
2,044    2,750    6,417
Change useful life intangible assets Helm Bank
—      —      2,272
Reimbursement of guarantees (Fogafin - Colombia)
—      —      1,402
Income Optirent
—      731    1,788
Income policy administration
—      397    1,481
Rental income
—      1,279    2,713
Other income
2,344    3,926    1,174






Subtotal
7,800    12,339    22,834
Total
18,708    39,658    28,958

There have been no changes in valuation techniques of this period relative to those used in previous.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~b) Other operating expenses~~

~~Other operating expenses for the years ended December 31, 2012, 2013 and 2014 are the following:~~NOTE 32 - OTHER OPERATING INCOME AND EXPENSES

   Note    2012    2013    2014
      MCh$    MCh$    MCh$
Provisions and expenses for assets received in lieu of payment

Provisions for assets received in lieu of payment
      —         (35 )    —
Maintenance expenses of assets received in lieu of payment
      (208 )    (352 )    (554 )






Subtotal
(208 ) (387 ) (554 )






Contingency provisions
Other contingency provisions
20 b ) (4,902 ) (107 ) —






Subtotal
(4,902 ) (107 ) —






Other expenses
Other expenses
(20,945 ) (14,740 ) (23,745 )






Subtotal
(20,945 ) (14,740 ) (23,745 )






Total
(26,055 ) (15,234 ) (24,299 )

a)	Other operating income

The detail of other operating income is as follows:


	Note		2013		2014		2015
			MCh$		MCh$		MCh$

Revenues for assets received in lieu of payment
Assets received in lieu of payment provision released				—		—		—
Gain on sales of assets received in lieu of payment				1,921		2,226		2,356
Others				71		645		1,699

Subtotal				1,992		2,871		4,055

Contingency provisions used
Other contingency provisions		20 b)		57		2,749		934

Subtotal				57		2,749		934

Other Revenues
Gain on sales of property, plant and equipment				25,164		415		461
Compensation insurance companies				106		89		95

Subtotal				25,270		504		556

Leasing contributions revenue				1,591		2,181		1,167
Other operating income -Subsidiaries				1,146		2,561		3,136
Gain on sales of leased assets				334		604		1,357
Other operating income -Leasing				185		241		366
Insurance reimbursement				2,750		6,417		8,206
Change useful life intangible assets Helm Bank				—		2,272		—
Reimbursement of guarantees (Fogafin - Colombia)				—		1,402		—
Income policy administration				397		1,481		—
Valuation of investment income				—		—		889
Rental income				1,279		2,713		618
Other income				4,657		2,962		2,368

Subtotal				12,339		22,834		18,107

Total				39,658		28,958		23,652

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and 2015

b)	Other operating expenses

Other operating expenses for the years ended December 31, 2013, 2014 and 2015 are the following:


	Note			2013			2014			2015
				MCh$			MCh$			MCh$
Provisions and expenses for assets received in lieu of payment
Provisions for assets received in lieu of payment					(35	)		—			(361	)
Maintenance expenses of assets received in lieu of payment					(352	)		(554	)		(486	)

Subtotal					(387	)		(554	)		(847	)

Contingency provisions
Other contingency provisions		20 b	)		(107	)		—			—

Subtotal					(107	)		—			—

Other expenses
Other expenses					(14,740	)		(23,745	)		(22,348	)

Subtotal					(14,740	)		(23,745	)		(22,348	)

Total					(15,234	)		(24,299	)		(23,195	)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

NOTE ~~33—~~33 - RELATED PARTY TRANSACTIONS

As defined in IAS 24, a related party is: (a) a person or a close member of that person’s family related to a reporting entity if that person (i) has control or joint control of the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity. (b) an entity is related to a reporting entity if (i) the entity and the reporting entity are members of the same group; (ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which ~~theother~~the other entity is a member); (iii) both entities are joint ventures of the same third party; (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) the entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity; (vi) the entity is controlled or jointly controlled by a person identified in (a) or ; (vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the enity (or of a parent of the entity):

Transactions that the Bank entered into with related parties as of December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015 are specified below:

~~a) Loans granted to related parties~~

a)	Loans granted to related parties

Loan granted to related parties as of December 31, ~~2012, 2013~~2014 and ~~2014~~2015 are as fol1ows:


	Operating			Investment
As of December 31, 2013	Companies			Companies			Individuals
	Mch$			Mch$			Mch$
Loans and receivables to customers:
Commercial loans		161,421			193,076			1,915
Mortgage Loans		—			—			16,267
Consumer Loans		—			—			4,956

Loans and receivables to customers - gross		161,421			193,076			23,138
Provision for loan losses		(2,334	)		(10,792	)		(86	)

Loans and receivables to customers, net		159,087			182,284			23,052

Other		71,457			332			2,166

	Operating			Investment
As of December 31, 2014	Companies			Companies			Individuals			Operating Companies			Investment Companies			Individuals
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and receivables to customers:
Commercial loans		181,576			31,351			1,741			181,576			31,351			1,741
Mortgage Loans		—			—			14,580			—			—			14,580
Consumer Loans		—			—			2,592			—			—			2,592

Loans and receivables to customers - gross		181,576			31,351			18,913			181,576			31,351			18,913
Provision for loan losses		(2,650	)		(154	)		(47	)		(2,650	)		(154	)		(47	)

Loans and receivables to customers, net		178,926			31,197			18,866			178,926			31,197			18,866


Other		76,396			312			2,304			76,396			312			2,304


As of December 31, 2015	Operating Companies			Investment Companies			Individuals
	MCh$			MCh$			MCh$
Loans and receivables to customers:
Commercial loans		86,595			24,406			3,863
Mortgage Loans		—			—			16,451
Consumer Loans		—			—			2,362

Loans and receivables to customers - gross		86,595			24,406			22,676
Provision for loan losses		(1,731	)		(6	)		(82	)

Loans and receivables to customers, net		84,864			24,400			22,594


Other		28,972			674			2,910

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~b) Other transactions with related parties~~

b)	Other transactions with related parties

For the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014,~~2015, the Bank entered into the following transactions with related parties for amounts exceeding UF 1,000.


As of December 31, 2012:
As of December 31, 2013:
				Asset		Effect on Statement of Income							Asset (Liability)			Effect on Statement of Income
Company	Description	Notes		(Liability)		Income		(expense)		Description	Notes				Income			(expense)
				MCh$		MCh$		MCh$					Asset (Liability)	MCh$			MCh$		MCh$
Inmobiliaria Edificio Corpgroup S.A.	Corporate office rent and building costs				—		—		2,552	Corporate office rent and building costs				—			—		2,740
Corp Group Interhold S.A. and Corp Group Holding Inversiones Ltda.										Management advisory services				—			—		2,632
Transbank S.A.	Credit Card processing				—		—		2,492	Credit Card processing				—			—		2,430
Corp Group Interhold S.A. and Corp Group Holding Inversiones Ltda.	Management advisory services				—		—		2,396
SMU S.A., Rendic Hnos S.A.										Prepaid rent for space for ATMs		16		19,067			—		1,928
Redbanc S.A.	Automatic teller machine administration				—		—		1,539	Automatic teller machine administration				—			—		1,782
Promoservice S.A.	Advertising services				—		—		1,438	Promotion services				—			—		1,508
Recaudaciones y Cobranzas S.A.	Office rent and credit collection				—		—		1,217
Recaudaciones y Cobranzas S.A. (*)										Office rent and credit collection				—			—		971
Operadora de Tarjeta de Crédito Nexus S.A.	Credit card processing				—		—		916	Credit card processing				—			—		846
Fundación Corpgroup Centro Cultural	Donations				—		—		624	Donations				—			—		736
Compañía de Seguros Vida Corp S.A.										Brokerage of insurance premiums and office rent				—			—		318
Empresa Periodística La Tercera S.A.										Advertising services				—			—		163
Fundación Descúbreme	Donations				—		—		66	Donations				—			—		80
Compañía de Seguros Vida Corp S.A.	Brokerage of insurance premiums and office rent				—		—		362
Inmobiliaria e Inversiones San Francisco Ltda.	Financial advisory services				—		—		264
Empresa Periodística La Tercera S.A.	Advertising services				—		—		183
Asesorías Santa Josefina Ltda.	Financial advisory and management services				—		—		147
SMU S.A., Rendic Hnos S.A.	Prepaid rent for space for ATMs		16		20,715		—		1,726

(*)	Since February 2015, the company is a subsidiary of CorpBanca Chile.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015


As of December 31, 2014:
Company	Description	Notes		Balance Asset		Effect on Statement of Income
Company	Description	Notes		(Liability)		Income		(expense)
				MCh$		MCh$		MCh$
Transbank S.A.	Credit Card processing				—		—		3,617
Inmobiliaria Edificio Corpgroup S.A.	Corporate office rent and building costs				—		—		3,067
Inversiones Corp Group Interhold Ltda.	Management advisory services				—		—		2,187
SMU S.A., Rendic Hnos S.A.	Prepaid rent for space for ATMs		16		18,157		—		2,092
Redbanc S.A.	Automatic teller machine administration				—		—		2,016
Recaudaciones y Cobranzas S.A. (*)	Office rent and credit collection				—		—		1,943
Fundación Corpgroup Centro Cultural	Donations				—		—		1,505
Promoservice S.A.	Promotion services				—		—		1,188
Operadora de Tarjeta de Crédito Nexus S.A.	Credit card processing				—		—		936
Corp Group Holding Inversiones Limitada	Advisory				—		—		618
Corp Research S.A	Management advisory services				—		—		408
Empresa Periodística La Tercera S.A.	Advertising services				—		—		282
CAI Gestion Inmobiliaria S.A	Commercial Homes (Department Stores)				—		—		219
Grupo de Radios Dial S.A	Publicity				—		—		177
Compañía de Seguros Vida Corp S.A.	Brokerage of insurance premiums and office rent				—		—		159
Hotel Corporation of Chile S.A	Accommodation, events				—		—		132
Pulso Editorial S.A	Publishing Services				—		—		111
Fundación Descúbreme	Donations				—		—		78
Corp Imagen y diseños S.A	Other services				—		—		76
Asesorias e Inversiones Rapelco Limitada S.A	Other services				—		—		49

(*)	Since February 2015, the company is a subsidiary of CorpBanca Chile.


As of December 31, 2015:
Company	Description	Notes		Balance Asset		Effect on Statement of Income
Company	Description	Notes		Balance Asset		Income		(expense)
				MCh$		MCh$		MCh$
Transbank S.A.	Credit Card processing				—		—		5,469
Inmobiliaria Edificio Corpgroup S.A.	Corporate office rent and building costs				—		—		4,298
Fundación Corpgroup Centro Cultural	Donations				—		—		3,550
Inversiones Corp Group Interhold Ltda.	Management advisory services				—		—		2,289
SMU S.A., Rendic Hnos S.A.	Prepaid rent for space for ATMs		16		16,805		—		2,054
Redbanc S.A.	Automatic teller machine administration				—		—		2,028
Promoservice S.A.	Promotion services				—		—		1,677
Operadora de Tarjeta de Crédito Nexus S.A.	Credit card processing				—		—		1,018
Pulso Editorial S.A	Publishing Services				—		—		697
Corp Research S.A	Management advisory services				—		—		426
Corp Group Holding Inversiones Limitada	Advisory				—		—		375
Fundación Descúbreme	Donations				—		—		193
Grupo de Radios Dial S.A	Publicity				—		—		189
Compañía de Seguros Vida Corp S.A.	Brokerage of insurance premiums and office rent				—		—		160
Hotel Corporation of Chile S.A	Accommodation, events				—		—		160
Corp Imagen y diseños S.A	Other services				—		—		89
CAI Gestion Inmobiliaria S.A	Commercial Homes (Department Stores)				—		—		58
Asesorias e Inversiones Rapelco Limitada S.A	Other services				—		—		53

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

These transactions were carried out at normal market prices prevailing at the day of the transactions.

As of December 31, 2013:
         Asset    Effect on Statement of Income
Company

Description
   Notes    (Liability)    Income    (expense)
         MCh$    MCh$    MCh$
Inmobiliaria Edificio Corpgroup S.A.
   Corporate office rent and building costs       —         —         2,740
Corp Group Interhold S.A. and Corp Group Holding Inversiones Ltda.
   Management advisory services       —         —         2,632
Transbank S.A.
   Credit Card processing       —         —         2,430
SMU S.A., Rendic Hnos S.A.
   Prepaid rent for space for ATMs    16       19,067       —         1,928
Redbanc S.A.
   Automatic teller machine administration       —         —         1,782
Promoservice S.A.
   Advertising services       —         —         1,508
Recaudaciones y Cobranzas S.A.
   Office rent and credit collection       —         —         971
Operadora de Tarjeta de Crédito Nexus S.A.
   Credit card processing       —         —         846
Fundación Corpgroup Centro Cultural
   Donations       —         —         736
Compañía de Seguros Vida Corp S.A.
   Brokerage of insurance premiums and office rent       —         —         318
Empresa Periodística La Tercera S.A.
   Advertising services       —         —         163
Fundación Descúbreme
   Donations       —         —         80

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

As of December 31, 2014:
         Balance    Effect on Statement of Income
Company

Description
   Notes    Asset    Income    (expense)
         MCh$    MCh$    MCh$
Transbank S.A.
   Credit Card processing       —         —         3,617
Inmobiliaria Edificio Corpgroup S.A.
   Corporate office rent and building costs       —         —         3,067
Inversiones Corp Group Interhold Ltda.
   Management advisory services       —         —         2,187
SMU S.A., Rendic Hnos S.A.
   Prepaid rent for space for ATMs    16       18,157       —         2,092
Redbanc S.A.
   Automatic teller machine administration       —         —         2,016
Recaudaciones y Cobranzas S.A.
   Office rent and credit collection       —         —         1,943
Fundación Corpgroup Centro Cultural
   Donations       —         —         1,505
Promoservice S.A.
   Advertising services       —         —         1,188
Operadora de Tarjeta de Crédito Nexus S.A.
   Credit card processing       —         —         936
Corp Group Holding Inversiones Limitada
   Advisory       —         —         618
Corp Research S.A
   Management advisory services       —         —         408
Empresa Periodística La Tercera S.A.
   Advertising services       —         —         282
CAI Gestion Inmobiliaria S.A
   Commercial Homes (Department Stores)       —         —         219
Grupo de Radios Dial S.A
   Publicity       —         —         177
Compañía de Seguros Vida Corp S.A.
   Brokerage of insurance premiums and office rent       —         —         159
Hotel Corporation of Chile S.A
   Accommodation, events       —         —         132
Pulso Editorial S.A
   Publishing Services       —         —         111
Fundación Descúbreme
   Donations       —         —         78
Corp Imagen y diseños S.A
   Other services       —         —         76
Asesorias e Inversiones Rapelco Limitada S.A
   Other services       —         —         49

In accordance with IAS 24, the relationship of all listed companies in the above table falls under the category “other related parties”.

~~c) Other assets and liabilities with related parties~~

c)	Other assets and liabilities with related parties

As of December 31, 2013:

~~Balance~~

~~Effect on Statement of~~

Company

Description

Balance
Asset

Effect on Statement of

Income

(expense)

MCh$

Fundación Corpgroup Centro Cultural

Donations

—

736

Fundación Descúbreme

Donations

—

Fundación El Golf

Donations

—

As of December 31, 2014:

~~Balance~~

~~Effect on Statement of~~

Company

Description

Balance
Asset

Effect on Statement of

Income

(expense)

MCh$

Fundación Corpgroup Centro Cultural

Donations

—

1,505

Fundación Descúbreme

Donations

—

Fundación de Inclusión Social Aprendamos

Donations

—

As of December 31, 2015:

Company

Description

Balance
Asset

Effect on Statement of

Income

(expense)

MCh $

Fundación Corpgroup Centro Cultural

Donations

—

3,550

Fundación Descúbreme

Donations

—

193

Fundación de Inclusión Social Aprendamos

Donations

—

d)	Other assets and liabilities with related parties


	As of December 31,
	2014		2015
	MCh$		MCh$
ASSETS
Derivative financial instruments		17,686		59,642
Other assets		212		249

LIABILITIES
Derivative financial instruments		—		—
Demand deposits		84,848		76,337
Deposits and other time deposits		196,956		157,549
Other Liabilities		1,093		1,050

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~d) Other assets and liabilities with related parties~~

e)	Operating income /expenses from related party transactions

   As of December 31,
   2013    2014
   MCh$    MCh$
ASSETS

Derivative financial instruments
   20,589       17,686
Other assets
   14,186       212
LIABILITIES

Derivative financial instruments
   1,965       —
Demand deposits
   67,569       84,848
Deposits and other time deposits
   170,930       196,956
Other Liabilities
   1,092       1,093

~~e) Operating income /expenses from related party transactions~~


	As of December 31,
	2013				2014				2015
Type of recognized income or expense	Income		Expenses		Income		Expenses		Income		Expenses
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Interest revenue		25,501		9,251		11,159		1,318		18,048		11,502
Income and expenses on fees and services		470		249		903		88		483		29
Gain and Loss on other financial transactions		311		—		—		—		—		—
Operating support expense		525		15,994		317		20,906		214		27,295
Other income and expense		—		437		—		848		—		141

Total		26,807		25,931		12,379		23,160		18,745		38,967

   As of December 31,
   2012    2013    2014
Type of recognized income or expense    Income    Expenses    Income Expenses    Income    Expenses
   MCh$    MCh$    MCh$    MCh$    MCh$    MCh$
Interest revenue
   8,640       25,759       25,501       9,251       11,159       1,318
Income and expenses on fees and services
   342       18       470       249       903       88
Gain and loss on trading
   —         —         —         —         —         —
Gain and Loss on other financial transactions
   —         —         311       —         —         —
Foreign currency exchanges
   —         —         —         —         —         —
Operating support expense
   541       13,829       525       15,994       317       20,906
Other income and expense
   —         67       —         437       —         848












Total
9,523    39,673    26,807    25,931    12,379    23,160

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~f) Contracts with related parties~~

f)	Contracts with related parties


~~2013~~2014

Company	Description
~~Inmobiliaria Edificio Corpgroup S.A.~~		~~Office lease and building fees~~
~~Transbank S.A.~~	~~Credit card management~~
~~Corp Group Interhold S.A.~~	~~Management advisory services~~
~~Corp Group Holding Inversiones Limitada~~	~~Advisory~~
~~Redbanc S.A.~~	~~ATM management~~
~~Promoservice S.A.~~	~~Promotional services~~
~~Recaudaciones y Cobranzas S.A.~~	~~Office lease and collections services~~
~~Operadora de Tarjeta de Crédito Nexus S.A.~~	~~Credit card management~~
~~Fundación Corpgroup Centro Cultural~~	~~Donations~~
Compañía de Seguros Vida Corp S.A.	Brokerage of insurance premiums and office lease
Corp Group Holding Inversiones Limitada	Advisory
Corp Research S.A	Management advisory services
Empresa Periodística La Tercera S.A.	Advertising services
~~SMU S.A., Rendic Hnos S.A.~~	~~Lease ATM space~~


~~2014~~
~~Company~~		~~Description~~
Fundación Corpgroup Centro Cultural		Donations
~~Transbank S.A.~~Fundación Descúbreme		~~Credit Card processing~~Donations
Grupo de Radios Dial S.A		Publicity
Hotel Corporation of Chile S.A		Accommodation, events
Inmobiliaria Edificio Corpgroup S.A.		Corporate office rent and building costs
Inversiones Corp Group Interhold Ltda.		Management advisory services
Operadora de Tarjeta de Crédito Nexus S.A.		Credit card processing
Promoservice S.A.		Promotion services
Pulso Editorial S.A		Publishing Services
Recaudaciones y Cobranzas S.A. (*)		Office rent and credit collection
Redbanc S.A.		Automatic teller machine administration
~~Recaudaciones y Cobranzas~~SMU S.A., Rendic Hnos S.A.		~~Office~~Rent spaces ATMs
Transbank S.A.		Credit Card processing

(*)	Since February 2015, the company is a subsidiary of CorpBanca Chile.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015


2015

Company		Description

CAI Gestión Inmobiliaria S.A.		Department stores
Compañía de Seguros Vida Corp S.A.		Brokerage of insurance premiums and office lease
Corp Group Holding Inversiones Limitada		Advisory
Corp Imagen y Diseño S.A		Other services
Corp Research S.A		Management advisory services
Distribución y Servicios META S.A.		Other services
Empresa Periodística La Tercera S.A.		Advertising services
Fundación Corpgroup Centro Cultural		Donations
Fundación Descúbreme		Donations
Grupo de Radios Dial S.A		Publicity
Hotel Corporation of Chile S.A		Accommodation, events
Inmobiliaria Edificio Corpgroup S.A.		Corporate office rent and ~~credit collection~~building costs
~~Promoservice~~Instituto profesional AIEP S.A		Advertising services
Inversiones Corp Group Interhold Ltda.		Management advisory services
Inversiones Santa Valentina S.A.		Administrative consulting
Laborum.com Chile S.A.		Advertising services
Operadora de Tarjeta de Crédito Nexus S.A.		Credit card processing
~~Corp Group Holding Inversiones Limitada~~		~~Advisory~~
~~Empresa Periodística La Tercera~~Promoservice S.A.		~~Advertising~~Promotion services
~~Corp Research S.A~~		~~Management advisory services~~
~~Fundación Descúbreme~~		~~Donations~~
~~Grupo de Radios Dial S.A~~		~~Publicity~~
~~Compañía de Seguros Vida Corp S.A.~~		~~Brokerage of insurance premiums and office lease~~
~~Hotel Corporation of Chile S.A~~		~~Accommodation, events~~
Pulso Editorial S.A		Publishing Services
Redbanc S.A.		Automatic teller machine administration
SMU S.A., Rendic Hnos S.A.		Rent spaces ATMs
Transbank S.A.		Credit Card processing
UNIRED S.A.		Payment management

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

~~g) Remunerations to members of the board and key management personnel~~

g)	Remunerations to members of the board and key management personnel

Remunerations paid to key management personnel are sets forth in table below:


	As of December 31,						As of December 31,
	2012		2013		2014		2013		2014		2015
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Short term employee remuneration		24,869		23,563		26,325
Short term benefits								23,563		26,325		23,545
Severance indemnities		731		395		1,482		395		1,482		508

Total		25,600		23,958		27,807		23,958		27,807		24,053

2015

In 2015 managers and senior executives received MCh$17,652 for remuneration. Additionally, depending on the bonus policy established by the Division of Human Resources, in conjunction with the General Manager and duly approved by the Board of Directors, senior executives of the Bank were awarded bonuses for meeting goals.

2014

As agreed by shareholders at the Ordinary General Shareholders’ Meeting on March 13, 2014, the Directors of CorpBanca received a total of MCh$463 in compensation for the year.

Monthly remunerations for 2014 were set at 100 UF for directors and 600 UF for the chairman of the board during the ordinary shareholders’ meeting. Members of the Directors’ Committee received 150 UF, while the chairman received 250 UF.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

As agreed at the same meeting, the members of the Directors’ Audit Committee were paid total fees of MCh$799.

Total compensation received by the Bank’s executives and key management personnel during the year ended December 31, 2014, amounted to MCh$17,852.

In addition, based on the bonus policy established by the Human Resources and Development Division, together with the Chief Executive Officer, senior executives received bonuses for meeting their targets.

2013

As agreed by shareholders at the Ordinary General Shareholders’ Meeting on March 7, 2013, the Directors of CorpBanca received a total of MCh$460 in compensation for the year.

As agreed at the same meeting, the members of the Directors’ Audit Committee were paid total fees of MCh$726.

Total compensation received by the Bank’s executives and key management personnel during the year ended December 31, 2013, amounted to MCh$16,627.

~~2012~~

h)	Key management personnel

~~For the year ended~~As of December 31, ~~2012~~2014 and 2015, the ~~members~~composition of the ~~Board of the Directors received remuneration for MCh$552.~~

~~For the year ended December 31, 2012 the members of the Directors Committee and Audit Committee received remuneration for MCh$237.~~

~~Total compensation received by the~~ Bank’s ~~executives and~~ key management personnel ~~during the year ended December 31, 2013, amounted to MCh$16,033.~~is as follows:

~~In addition, based on the bonus policy established by the Human Resources~~


	Number of Executives
Position	2014		2015

Directors		42		51
Chief Executive Officers -at the Subsidiaries		9		9
Division Managers		24		21
Department Managers		154		158
Deputy Managers		138		142
Vicepresident		19		17

i)	Transactions with key management personnel

During 2014 and ~~Development Division, together~~2015 transactions with ~~the Chief Executive Officer, senior executives received bonuses for meeting their targets.~~key personnel were carried out as follows:


	Income
	2013		2014		2015
	MCh$		MCh$		MCh$

Credit Cards		149		138		202
Consumer loans		283		133		381
Commercial loans		62		101		53
Mortgages loans		792		2,495		1,254

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, ~~and 2014~~

~~h) Key management personnel~~

~~As of December 31, 2012, 2013 and 2014, the composition of the Bank’s key management personnel is as follows:~~

   Number of Executives
Position
   2013    2014
Directors
   40       42
Chief Executive Officers-at the Subsidiaries
   10       9
Division Managers
   25       24
Department Managers
   168       154
Deputy Managers
   146       138
Vice President
   22       19

~~i) Transactions with key management personnel~~

~~During 2013 and 2014 transactions with key personnel were carried out as follows:~~

   Income
   2012    2013    2014
   MCh$    MCh$    MCh$
Credit Cards
   133       149       138
Consumer loans
   490       283       133
Commercial loans
   51       62       101
Mortgages loans
   895       792       2,495

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and~~ 2014 and ~~for the years ended December 31, 2012, 2013 and 2014~~2015

NOTE ~~34—~~34 - FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

This disclosure was prepared based on the guidelines “Fair Value of Financial Instruments” from the IFRS 13 “Fair Value Measurements”.

The following section details the main guidelines and definitions used by the Group:

Fair ~~value.~~value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). The transaction is carried out in the principal¹⁹¹⁶ or most advantageous²⁰¹⁷ market and is not forced (i.e. it does not consider factors specific to the Group that may influence a real transaction).

Market ~~participants.~~participants: Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics:

They are independent of each other, i.e. they are not related parties as defined in IAS 24 “Related Party Disclosures”, although the price in a related party transaction may be used as an input to a fair value measurement if the entity has evidence that the transaction was entered into at market terms.

b.	They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary.

c.	They are able to enter into a transaction for the asset or liability.

d.	They are willing to enter into a transaction for the asset or liability (i.e. they are motivated, but not forced or otherwise compelled, to do so).

Fair value ~~measurement~~measurement: When measuring fair value, the Group takes into account the same characteristics of the asset or liability that market participants would consider in pricing that asset or liability on the measurement date.

Aspects of the ~~transaction.~~transaction: A fair value measurement assumes that the asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions. The measurement assumes that the transaction to sell the asset or transfer the liability takes place: (a) on the principal market for the asset or liability; or (b) in the absence of a principal market, on the most advantageous market for the asset or liability.

Market ~~participants.~~participants: The fair value measurement measures the fair value of the asset or liability using the assumptions that the market participants would use in pricing the asset or liability, assuming that the participants act in their best economic interest.

~~Prices.~~Prices: Fair value is the price that will be received for the sale of an asset or paid for the transfer of a liability in a orderly transaction on the main (or most advantageous) market as of the measurement date under current market conditions (i.e. exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

Highest and best use of non-financial ~~assets.~~assets: The fair value measurement of these assets takes into account the market participant’s ability to generate economic benefits through the highest and best use of the asset or through the sale of the asset to another market participant that would maximize the value of the asset.

Group’s own liabilities and equity instruments: The fair value measurement assumes that these items are transferred to a market participant on the date of measurement. The transfer of these items assumes that:

¹⁹¹⁶	The market with the greatest volume and level of activity for the asset or liability.

²⁰¹⁷	The market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transport costs.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~Group’s own liabilities and equity instruments.~~ ~~The fair value measurement assumes that these items are transferred to a market participant on the date of measurement. The transfer of these items assumes that:~~

a.	A liability would remain outstanding and the market participant transferee would be required to fulfill the obligation. The liability would not be settled with the counterparty or otherwise extinguished on the measurement date.

b.	An entity’s own equity instrument would remain outstanding and the market participant transferee would take on the rights and responsibilities associated with the instrument. The instrument would not be canceled or otherwise extinguished on the measurement date.

Default ~~risk.~~risk: The fair value of a liability reflects the effect of the default risk. This risk includes, but is not limited to, the entity’s own credit risk. This risk is assumed to be the same before and after the liability is transferred.

Initial ~~recognition.~~recognition: When an asset is acquired or a liability assumed in an exchange transaction involving that asset or liability, the transaction price is the price paid to acquire the asset or received to assume the liability (the entry price). In contrast, the fair value of the asset or liability is the price received to sell the asset or paid to transfer the liability (the exit price). Entities do not necessarily sell assets at the prices paid to acquire them. Likewise, they do not necessarily transfer liabilities at the price received to assume them.

Valuation ~~techniques.~~techniques: The Bank will use techniques that are appropriate for the circumstances and for which sufficient data is available to measure the fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The following approaches deserve mention:

a.	Market approach. Uses prices and other relevant information generated by market transactions involving identical or comparable (similar) assets, liabilities, or a group of assets and liabilities (e.g. a business).

b.	Cost approach. Reflects the amount that would be required currently to replace the service capacity of an asset (current replacement cost).

Income approach. Converts future amounts (cash flows or income and expenses) to a single current (discounted) amount, reflecting current market expectations about those future amounts. The fair value measurement is determined based on the value indicated by the current market expectations about those future amounts.

Present value ~~techniques.~~techniques: Technique to adjust the discount rate and expected cash flows (expected present value). The present value technique used to measure the fair value will depend on the specific facts and circumstances of the asset or liability being measured and the availability of sufficient data.

Components of the present value ~~measurement.~~measurement: Present value is the tool used to link future amounts (e.g. cash flows or values) to a present amount using a discount rate. A fair value measurement of an asset or a liability using a present value technique captures all the following elements from the perspective of market participants at the measurement date:

a.	An estimate of future cash flows for the asset or liability being measured.

b.	Expectations about possible variations in the amount and timing of the cash flows representing the uncertainty inherent in the cash flows.

c.	The time value of money, represented by the rate on risk-free monetary assets that have maturity dates or durations that coincide with the period covered by the cash flows and pose neither uncertainty in timing nor risk of default to the holder (i.e. a risk-free interest rate).

d.	The price for bearing the uncertainty inherent in the cash flows (i.e. a risk premium).

e.	Other factors that market participants would take into account in the circumstances.

f.	For a liability, the non-performance risk relating to that liability, including the entity’s (i.e. the debtor’s) own credit risk.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Fair value ~~hierarchy.~~hierarchy;Gives the highest priority to quoted prices (unadjusted) in active markets for identical assets and liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs). Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

~~1.1 Determination of the fair value of financial instruments~~

1.1	Determination of the fair value of financial instruments

The following table summarizes the fair values of the Bank’s main financial assets and liabilities as of December 31, ~~2013~~2014 and ~~2014,~~2015, including those that are not recorded at fair value in the Consolidated Statement of Financial Position.


			2013				2014
			Carrying		Estimated		Carrying		Estimated				2014				2015
	Notes		Amount		Fair Value		Amount		Fair Value		Notes		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
			MCh$		MCh$		MCh$		MCh$				MCh$		MCh$		MCh$		MCh$
ASSETS
Cash and deposits in banks		5		911,088		911,088		1,169,178		1,169,178		5		1,169,178		1,169,178		1,004,757		1,004,757
Cash in the process of collection		5		112,755		112,755		212,842		212,842		5		212,842		212,842		176,501		176,501
Trading portfolio financial assets		6		431,683		431,683		685,898		685,898		6		685,898		685,898		323,899		323,899
Investments under agreements to resell		7		201,665		201,665		78,079		78,079		7		78,079		78,079		24,674		24,674
Derivative financial instruments		8		376,280		376,280		766,799		766,799		8		766,799		766,799		1,008,915		1,008,915
Loans and receivables from banks		9		217,944		217,944		814,209		814,209		9		814,209		814,209		451,829		451,829
Loans and receivables from customers		10		12,771,642		12,691,109		13,892,270		14,215,243		10		13,892,270		14,215,243		14,454,357		15,389,442
Financial investments available-for-sale		11		889,087		889,087		1,156,896		1,156,896		11		1,156,896		1,156,896		1,924,788		1,924,788
Held to maturity investments		11		237,522		231,880		190,677		190,713		11		190,677		190,713		170,191		160,258

LIABILITIES
Current accounts and demand deposits		17		3,451,383		3,451,383		3,954,948		3,928,982		17		3,954,948		3,928,982		4,431,619		4,393,163
Cash in the process of collection		5		57,352		57,352		145,771		145,771
Transaction in the course of payment												5		145,771		145,771		105,441		105,441
Obligations under repurchase agreements		7		342,445		342,445		661,663		661,663		7		661,663		661,663		260,631		260,631
Time deposits and saving accounts		17		7,337,703		7,320,493		8,076,966		8,077,208		17		8,076,966		8,077,208		8,495,603		8,476,053
Derivative financial instruments		8		281,583		281,583		607,683		607,683		8		607,683		607,683		731,114		731,114
Borrowings from financial institutions		18		1,273,840		1,295,807		1,431,923		1,438,512		18		1,431,923		1,438,512		1,528,585		1,523,976
Debt issued		19		2,414,557		2,388,752		3,079,050		3,239,315		19		3,079,050		3,239,315		3,227,554		3,383,605
Other financial obligations		19		16,807		16,807		15,422		15,422		19		15,422		15,422		14,475		14,475

1.1.1. Fair Value Measurements of assets and liabilities only for disclosure purposes (non-recurring):

In addition, the fair value estimates presented above do not attempt to estimate the value of the Group’s profits generated by its business, nor future business activities, and, therefore, do not represent the value of the Group as a going concern.

Cash, short-term assets and short-term liabilities

The fair value of these items approximates their book value given their short-term nature. These items include:

Cash and deposits in banks

Cash in the process of collection

Investments under agreements to resell

Current accounts and demand deposits

Other financial obligations

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Loans

The fair value of loans is determined using a discounted cash flow analysis, using a risk-free interest rate adjusted for expected losses from debtors based on their credit quality. The credit risk adjustment is based on the Group’s credit risk policies and methodologies: These items include:

Loans and receivables from banks

Loans and receivables from customers

Financial instruments held to maturity

The estimated fair value of these financial instruments is determined using quotes and transactions observed in the main market for identical instruments, or in their absence, for similar instruments. Fair value estimates of debt instruments or securities representative of debt take into account additional variables and inputs to the extent that they apply, including estimates of prepayment rates and the credit risk of issuers.

Medium and long-term liabilities

The fair value of medium and long-term liabilities is determined using a discounted cash flow analysis, using an interest rate curve that reflects current market conditions at which the entity’s debt instruments are traded. Medium and long-term liabilities include:

Time deposits and saving accounts

Borrowings from financial institutions

Debt issued

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

1.1.2. Fair Value measurement of financial assets and liabilities (recurring)


			Fair value measurement of
			recurring items						Fair value measurement of recurring items
	Note		2013		2014		Note		2014		2015
			MCh$		MCh$				MCh$		MCh$
ASSETS
Trading portfolio financial assets		6		431,683		685,898		6		685,898		323,899
From the Chilean Government and Central Bank				9,852		4,822				4,822		6,210
Other instruments issued in Chile				18,715		15,883				15,883		37,295
Foreign government and Central Bank instruments				326,141		542,791				542,791		192,427
Other instruments issued abroad				64,443		110,615				110,615		57,875
Mutual fund investments				12,532		11,787				11,787		30,092
Financial investments available for sale		11		889,087		1,156,896		11		1,156,896		1,924,788
From the Chilean Government and Central Bank				357,334		536,928				536,928		786,609
Other instruments issued in Chile				233,633		105,891				105,891		148,829
Foreign government and Central Bank instruments				212,280		434,392				434,392		629,297
Other instruments issued abroad				85,840		79,685				79,685		360,053
Derivative financial instruments		8		376,280		766,799		8		766,799		1,008,915
Forwards				70,265		154,229				154,229		225,986
Swaps				303,535		609,526				609,526		777,763
Call Options				1,968		2,648				2,648		4,655
Put Options				512		396				396		511

Total				1,697,050		2,609,593				2,609,593		3,257,602

LIABILITIES
Derivative financial instruments		8		281,583		607,683		8		607,683		731,114
Forwards				62,170		140,949				140,949		191,589
Swaps				215,302		463,484				463,484		535,212
Call Options				3,549		2,564				2,564		3,511
Put Options				562		686				686		802

Total				281,583		607,683				607,683		731,114

Financial Instruments

Trading portfolio financial assets

Financial investments available for sale

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

Derivative instruments

The estimated fair value of derivative instruments is calculated using prices quoted on the market for financial instruments of similar characteristics.

The methodology therefore recognizes the credit risk of each counterparty.

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

The effect of both CVA (counterparty valuation adjustement) and DVA (negative counterparty valuation ~~adjustement)~~adjustment) are incorporated in the valuation of a derivatives contracts.

1.2 Fair value hierarchy²¹¹⁸

IFRS 13 establishes a fair value hierarchy that classifies assets and liabilities based on the characteristics of the data that the technique requires for its valuation:

Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Entity can access at the measurement date. The inputs needed to value the instruments in this category are available daily and used directly.

In the case of currency, shares and mutual funds, prices are observed directly in markets and the stock exchange. These prices correspond to the values at which the exact same assets are traded. As a result, the portfolio valuation does not require assumptions or models of any type.

For instruments issued by the Chilean Central Bank and the Chilean Treasury, prices are derived from identical assets or liabilities traded on an active market.

Level 2: inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

The specific instrument does not have daily quotes. However, similar instruments can be observed (e.g. same issuer, different maturity; or different issuer, same maturity and risk rating). Although the inputs are not directly observable, observable inputs are available with the needed frequency of usage.

In this category, instruments are valued by discounting contractual cash flows based on a zero-coupon curve determined through the price of instruments with similar characteristics and a similar issuer risk. The income approach is used, which converts future amounts to present amounts.

For derivative instruments within this category, quotes from over-the-counter transactions reported by the most important brokers in the Chilean market and the Bloomberg platform are used. The inputs observed include forward prices, interest rates and volatilities. Based on these inputs, market curves are modeled. They are a numerical representation of the opportunity costs of the instrument’s cash flows or the price volatility of an asset. Finally, cash flows are discounted.

The Black and Scholes model is used for options based on prices of brokers in the ~~OTC~~Over-The-Counter market.

For money market instruments, prices of transactions on the Santiago Stock Exchange are observed and used to model market curves.

¹⁸	Level 2 and level 1 hierarchy instruments are not subject to adjustments of liquidity and credit spread because prices for such instruments are observed on active markets.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

For corporate or bank bonds, given the lack of market depth, the Bank uses transactions (if any) in the Chilean market, on foreign markets, zero-coupon curves of risk-free instruments, adjustment curves, spread modeling, correlation with similar financial instruments, etc. and ~~gives~~creates market curves asfor use in the final result.

Level 3: inputs are unobservable inputs for the asset or liability.

This is used when prices, data or necessary inputs are not directly or indirectly observable for similar instruments for the asset or liability as of the valuation date. These fair value valuation models include liquidity and credit spread adjustments, over an OIS CLP swap curve. Additionally The Group has two ~~derivatives~~derivative products in this category:

²¹	~~Level 2 and level 1 hierarchy instruments are not subject to adjustments of liquidity and credit spread because prices for such instruments are observed on active markets.~~

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended December 31, 2012, 2013 and 2014~~

Due to the lack of liquidity ~~in the basis~~ of the active banking rate (TAB) ~~over the counter,~~, the price is not observable and, therefore, models must be used to estimate the future cash flows of the contract. This spread is calculated on a historical basis using the Interest Rate Swap with the greatest market depth.

In addition, the Bank develops American forwards to meet its customers’ needs. They do not have a secondary market and, therefore, their value is estimated using an extension of the Hull-White model, used widely by the financial services industry.

None of these products generate significant impacts on the Bank’s results as a result of recalibration. The TAB swap does not have significant impacts on the valuation as the parameters are stable and the reversal to a historic average is empirically quick, which this model reflects correctly. On the other hand, the American forward behaves like a traditional forward when there is an important curve differential, which is the case between the Chilean peso-US dollar curve. Also, the model’s parameters are very stable.

The table below summarizes the impacts on the portfolio of a recalibration of the models based on a stress scenario, recalibrating parameters with the shock incorporated.


	As of December 31, 2013															As of December 31, 2014
Impact of Calibration in	Total			Volatility of American Forwards		TAB 30		TAB 90		TAB 180			TAB 360			Total			Volatility of American Forwards		TAB 30		TAB 90			TAB 180			TAB 360
	MCh$			MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$		MCh$		MCh$			MCh$			MCh$
American Forward USD-CLP		—			—		—		—		—			—			—			—		—		—			—			—

Basis TAB CLP		973			—		230		197		528			18			(1,452	)		—		82		(377	)		(1,146	)		(11	)
Basis TAB CLF		(1,501	)		—		—		—		(102	)		(1,399	)		(539	)		—		—		—			28			(567	)

Total		(528	)		—		230		197		426			(1,381	)		(1,991	)		—		82		(377	)		(1,118	)		(578	)


	As of December 31, 2015
Impact of Calibration in	Total			Volatility of American Forwards		TAB 30			TAB 90			TAB 180			TAB 360
	MCh$			MCh$		MCh$			MCh$			MCh$			MCh$
American Forward USD-CLP		—			—		—			—			—			—

Basis TAB CLP		(495	)		—		(194	)		(153	)		(145	)		(3	)
Basis TAB CLF		(264	)		—		—			—			(434	)		170

Total		(759	)		—		(194	)		(153	)		(579	)		167

The adjustments (CVA and DVA) are recognized periodically in the financial statements since December 2013, the portfolio of derivative contracts accumulate an effect of MCh$(6,773) as of December 31, 2015 (MCh$(2,929) as of December 31, ~~2014 (MCh$(2,184) as of December 31, 2013)~~2014), the breakdown is as follows:

   As of December 31,
   2013    2014
   CVA    DVA    CVA    DVA
   MCh$    MCh$    MCh$    MCh$
Derivatives held for hedging
   —         7       (1 )    10








Fair value
—      4    (1 ) 3








Currency Forwards
—      —      —      —
Currency Swaps
—      2    (1 ) 2
Interest Rate Swaps
—      2    —      1








Cash Flow
—      3    —      7








Currency Forwards
—      1    —      5
Currency Swaps
—      (1 ) —      (1 )
Interest Rate Swaps
—      3    3








Derivatives held for trading
(2,264 ) 73    (3,075 ) 137








Currency Forwards
(216 ) 14    330    5
Currency Swaps
(858 ) 5    (3,723 ) 118
Interest Rate Swaps
(1,174 ) 53    313    13
Currency Call Options
(12 ) 1    5    1
Currency Put Options
(4 ) —      —      —
Total financial derivatives
(2,264 ) 80    (3,076 ) 147




Net Effect
(2,184)    (2,929)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

   As of December 31, 2014
Impact of Calibration in    Total Volatility of
American
Forwards    TAB 30    TAB 90 TAB 180 TAB 360
   MCh$ MCh$    MCh$    MCh$ MCh$ MCh$
American Forward USD-CLP
   —      —         —         —      —      —






Basis TAB CLP
(1,452 ) —      82    (377 ) (1,146 ) (11 )
Basis TAB CLF
(539 ) —      —      —      28    (567 )






Total
(1,991 ) —      82    (377 ) (1,118 ) (578 )


	As of December 31,
	2014						2015
	CVA			DVA			CVA			DVA
	MCh$			MCh$			MCh$			MCh$

Derivatives held for hedging		(1	)		10			(3	)		15

Fair value		(1	)		3			—			2

Currency Forwards		—			—			—			—
Currency Swaps		(1	)		2			—			2
Interest Rate Swaps		—			1			—			—

Cash Flow		—			7			(4	)		11

Currency Forwards		—			5			1			3
Currency Swaps		—			(1	)		(6	)		6
Interest Rate Swaps					3			1			2

Inversiones en el Exterior		—			—			1			2

Currency Forwards		—			—			1			2
Currency Swaps		—			—			—			—
Interest Rate Swaps					—			—			—

Derivatives held for trading		(3,075	)		137			(7,016	)		231

Currency Forwards		330			5			(307	)		25
Currency Swaps		(3,723	)		118			(5,533	)		192
Interest Rate Swaps		313			13			(1,134	)		12
Currency Call Options		5			1			(42	)		2
Currency Put Options		—			—			—			—
Total financial derivatives		(3,076	)		147			(7,019	)		246


Net Effect		(2,929)						(6,773)

The following table summarizes the fair value hierarchy for the Group’s recurring valuation of financial instruments:


Level		Instrument		Issuer		Price Source		Model
1		Shares		Various		Santiago Stock Exchange		Directly observable price.
		Mutual Funds		Asset Managers		SVS		Directly observable price.
		Bonds		Chilean Central Bank and Chilean Treasury		Santiago Stock Exchange		Internal rate of return (IRR) based on prices.
2		Derivatives		~~N/A~~		~~OTC~~ N/A		Over-The-Counter (brokers), Bloomberg	Interest rate curves based on forward prices and coupon rates.
2		Money market instruments		Chilean Central Bank and Chilean Treasury		Santiago Stock Exchange		Interest rate curves based on prices.
	~~Money market instruments~~		~~Banks~~		~~Santiago Stock Exchange~~		~~Interest rate curves based on prices.~~
	~~Bonds~~		~~Companies, banks~~		~~Pricing supplier~~		~~Interest rate curves based on correlations, spreads, extrapolations, etc~~
3		~~Derivatives, active banking rate (TAB)~~		~~N/A~~		~~OTC (brokers)~~		~~Interest rate curves based on modeling of TAB-Chamber spread.~~
3		~~Derivatives, American forwards~~		~~N/A~~		~~Bloomberg~~		~~Black and Scholes with inputs from European options.~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


	Money market instruments	Banks	Santiago Stock Exchange	Interest rate curves based on prices.
	Bonds	Companies, banks	Pricing supplier	Interest rate curves based on correlations, spreads, extrapolations, etc
3	Derivatives, active banking rate (TAB)	N/A	Over-The-Counter (brokers)	Interest rate curves based on modeling of TAB-Chamber spread.
3	Derivatives, American forwards	N/A	Bloomberg	Black and Scholes with inputs from European options.

The following table classifies assets and liabilities measured at fair value on a recurring basis, in accordance with the fair value hierarchy established in IFRS 13 for December 31, ~~2013~~2014 and ~~2014.~~2015.

      Fair Value Measurement at reporting date using
As of December 31, 2013
   Notes    Fair Value
Amount    Quoted
prices in
Active
Markets
for
identical
assets
(Level 1)    Significant
Other
observable
inputs
(Level 2)    Significant
unobservable
inputs
(Level 3)
      MCh$    MCh$    MCh$    MCh$
ASSETS

Trading securities
   6    431,683       348,525       83,158       —
Chilean Central Bank and Government securities
      9,852       9,852       —         —
Other national institution securities
      18,715       —         18,715       —
Foreign Institution Securities
      326,141       326,141       —         —
Other foreign Securities
      64,443       —         64,443       —
Mutual funds Investments
      12,532       12,532       —         —
Available-for-sale securities
   11    889,087       595,876       293,211       —
Chilean Central Bank and Government securities
      357,334       334,910       22,424       —
Other national institution securities
      233,633       —         233,633       —
Foreign Institution Securities
      212,280       212,280       —         —
Other foreign Securities
      85,840       48,686       37,154       —
Derivatives
   8    376,280       —         340,558       35,722
Forwards
      70,265       —         70,260       5
Swaps
      303,535       —         267,818       35,717
Call Options
      1,968       —         1,968       —
Put Options
      512       —         512       —








Total
1,697,050    944,401    716,927    35,722








LIABILITIES
Derivatives
8 281,583    —      278,867    2,716
Forwards
62,170    —      62,166    4
Swaps
215,302    —      212,590    2,712
Call Options
3,549    —      3,549    —
Put Options
562    —      562    —








Total
281,583    —      278,867    2,716

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


		Fair Value Measurement at reporting date using									Fair Value Measurement at reporting date using
As of December 31, 2014	Notes	Fair Value Amount		Quoted prices in Active Markets for identical assets (Level 1)		Significant Other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Notes	Fair Value Amount		Quoted prices in Active Markets for identical assets (Level 1)		Significant Other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$		MCh$
ASSETS

Trading securities	6		685,898		477,084		208,814		—	6		685,898		477,084		208,814		—
Chilean Central Bank and Government securities			4,822		4,822		—		—			4,822		4,822		—		—
Other national institution securities			15,883		—		15,883		—			15,883		—		15,883		—
Foreign Institution Securities			542,791		460,475		82,316		—			542,791		460,475		82,316		—
Other foreign Securities			110,615		—		110,615		—			110,615		—		110,615		—
Mutual funds Investments			11,787		11,787		—		—			11,787		11,787		—		—

Available-for-sale securities	11		1,156,896		964,878		192,018		—	11		1,156,896		964,878		192,018		—
Chilean Central Bank and Government securities:			536,928		530,486		6,442		—			536,928		530,486		6,442		—
Other national institution securities			105,891		—		105,891		—			105,891		—		105,891		—
Foreign Institution Securities			434,392		434,392		—		—			434,392		434,392		—		—
Other foreign Securities			79,685		—		79,685		—			79,685		—		79,685		—

Derivatives	8		766,799		—		716,207		50,592	8		766,799		—		716,207		50,592
Forwards			154,229		—		154,216		13			154,229		—		154,216		13
Swaps			609,526		—		558,947		50,579			609,526		—		558,947		50,579
Call Options			2,648		—		2,648		—			2,648		—		2,648		—
Put Options			396		—		396		—			396		—		396		—


Total			2,609,593		1,441,962		1,117,039		50,592			2,609,593		1,441,962		1,117,039		50,592


LIABILITIES

Derivatives	8		607,683		—		605,488		2,195	8		607,683		—		605,488		2,195
Forwards			140,949		—		140,944		5			140,949		—		140,944		5
Swaps			463,484		—		461,294		2,190			463,484		—		461,294		2,190
Call Options			2,564		—		2,564		—			2,564		—		2,564		—
Put Options			686		—		686		—			686		—		686		—


Total			607,683		—		605,488		2,195			607,683		—		605,488		2,195

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and 2015


		Fair Value Measurement at reporting date using
As of December 31, 2015	Notes	Fair Value Amount		Quoted prices in Active Markets for identical assets (Level 1)			Significant Other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
		MCh$		MCh$			MCh$		MCh$
ASSETS

Trading securities	6		323,899		228,729			95,170		—
Chilean Central Bank and Government securities			6,210		6,210			—		—
Other national institution securities			37,295		—			37,295		—
Foreign Institution Securities			192,427		192,427			—		—
Other foreign Securities			57,875		—			57,875		—
Mutual funds Investments			30,092		30,092			—		—

Available-for-sale securities	11		1,924,788		1,415,047			509,741		—
Chilean Central Bank and Government securities:			786,609		785,750			859		—
Other national institution securities			148,829		—			148,829		—
Foreign Institution Securities			629,297		629,297			—		—
Other foreign Securities			360,053		—			360,053		—

Derivatives	8		1,008,915		—			962,034		46,881
Forwards			225,986		—			225,981		5
Swaps			777,763		—			730,887		46,876
Call Options			4,655		—			4,655		—
Put Options			511		—			511		—


Total			3,257,602		1,643,776			1,566,945		46,881


LIABILITIES

Derivatives	8		731,114		—			730,545		569
Forwards			191,589		—	��		191,560		29
Swaps			535,212		—			534,672		540
Call Options			3,511		—			3,511		—
Put Options			802		—			802		—


Total			731,114		—			730,545		569

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

1.2.1 Transfers between level 1 and 2

The following table details transfers of assets and liabilities between Level 1 and Level 2 during ~~2013.~~2014.


		Fair value measurement of recurring items using
As of December 31, 2013	Note	Fair Value		Level 1 to 2		Level 2 to 1
		MCh$		MCh$		MCh$
ASSETS
Trading portfolio financial assets securities	6		431,683		18,331		—
Financial instruments available for sale	11		889,087		78,712		—
Derivative financial instruments	8		376,280		—		—

Total			1,697,050		97,043		—
LIABILITIES
Derivative financial instruments	8		281,583		—		—

Total			281,583		—		—

		Fair value measurement of recurring items using									Transfers from
As of December 31, 2014	Note	Fair Value		Level 1 to 2		Level 2 to 1		Note	Fair Value		Level 1 to 2		Level 2 to 1
		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$
ASSETS
Trading portfolio financial assets securities	6		685,898		—		—	6		685,898		—		—
Financial instruments available for sale	11		1,156,896		—		—	11		1,156,896		—		—
Derivative financial instruments	8		766,799		—		—	8		766,799		—		—

Total			2,609,593		—		—			2,609,593		—		—

LIABILITIES
Derivative financial instruments	8		607,683		—		—	8		607,683		—		—

Total			607,683		—		—			607,683		—		—

Transfers from Level 1 to Level 2 observed during 2013 are due fully to implementing IFRS 13, as the transferred assets are valued using zero-coupon discount curves built using quoted input for transactions with similar instruments.


				Transfers from
As of December 31, 2015	Note	Fair Value		Level 1 to 2		Level 2 to 1
		M Ch$		M Ch$		M Ch$
ASSETS
Trading portfolio financial assets securities	6		323,899		—		—
Financial instruments available for sale	11		1,924,788		—		—
Derivative financial instruments	8		1,008,915		—		—

Total			3,257,602		—		—

LIABILITIES
Derivative financial instruments	8		731,114		—		—

Total			731,114		—		—

1.2.2 Disclosures regarding level 3 assets and liablilities

Level 3 assets and liabilities are valued using techniques that require inputs that are not observable on the market, for which the income approach is used to convert future amounts to present amounts.

This category includes:

Derivative financial instruments indexed to the TAB rate. This rate is comprised of an interbank rate and a liquidity premium charged to financial institutions and is determined using a short-rate model with mean reversion.

American forward options.

As none of these products has a market, the Bank uses valuation techniques which incorporate unobservable input.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

These techniques use the following inputs: transaction prices from the main financial instrument markets and assumptions that are widely accepted by the financial services industry. Using this information, unobservable variables are constructed such as: adjustment curves, spreads, volatilities and other variables necessary for the valuation. Lastly, all of the models are subject to internal contrasts by independent areas and have been reviewed by internal auditors and regulators.

None of these products generate significant impacts on the Bank’s results as a result of recalibration. The American forward is only offered for the US dollar-Chilean peso market and until now, given the important differential between these interest rates, the product behaves like a traditional forward. The TAB swap does not have significant impacts on the valuation as the modeled liquidity premiums have a quick mean reversion for the short part and low volatility for the long part, concentrating on the book’s sensitivity in the longest part of the curve. The following table reconciles assets and liabilities measured at fair value on a recurring basis as of year-end ~~2014~~2015 and ~~2013.~~2014.


Level 3 Reconciliation
As of December 31, 2013	Opening balance		Gain (loss) recognized in profit or loss		Gain (loss) recognized in equity		Net of purchases, sales and agreements			Transfers between level 1 and level 2		Closing balance
As of December 31, 2014														Opening balance		Gain (loss) recognized in profit or loss		Gain (loss) recognized in equity		Net of purchases, sales and agreements			Transfers from level 1 or level 2		Closing balance
	MCh$		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$
ASSETS
Trading securities		—		—		—		—			—		—		—											—
Financial assets available for sale		—		—		—		—			—		—		—											—
Derivative instruments		32,971		9,729		—		(6,978	)		—		35,722		35,722		21,428		—		(6,558	)		—		50,592

Total		32,971		9,729		—		(6,978	)		—		35,722		35,722		21,428		—		(6,558	)		—		50,592

LIABILITIES
Derivative instruments		5,813		5,703		—		(8,800	)		—		2,716		2,716		5,897		—		(6,418	)		—		2,195

Total		5,813		5,703		—		(8,800	)		—		2,716		2,716		5,897		—		(6,418	)		—		2,195


As of December 31, 2014	Opening balance		Gain (loss) recognized in profit or loss		Gain (loss) recognized in equity		Net of purchases, sales and agreements			Transfers between level 1 and level 2		Closing balance
As of December 31, 2015														Opening balance		Gain (loss) recognized in profit or loss		Gain (loss) recognized in equity		Net of purchases, sales and agreements			Transfers from level 1 or level 2		Closing balance
	MCh$		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$
ASSETS
Trading securities		—											—		—											—
Financial assets available for sale		—											—		—											—
Derivative instruments		35,722		21,428		—		(6,558	)		—		50,592		50,592		3,845		—		(7,556	)		—		46,881

Total		35,722		21,428		—		(6,558	)		—		50,592		50,592		3,845		—		(7,556	)		—		46,881

LIABILITIES
Derivative instruments		2,716		5,897		—		(6,418	)		—		2,195		2,195		2,452		—		(4,078	)		—		569

Total		2,716		5,897		—		(6,418	)		—		2,195		2,195		2,452		—		(4,078	)		—		569

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and 2015

1.2.3 Hierarchy for remaining assets and liabilities

The following table classifies assets and liabilities measured at fair value on a non-recurring basis, in accordance with the fair value hierachy as of year-end 2015 and 2014.


		Measurement at fair value of items not valued on a recurrent
As of December 31, 2014	Note	Estimated Fair Value		Quoted prices in active markets in identical assets (level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (level 3)
		MCh$		MCh$		MCh$		MCh$
ASSETS
Cash and deposits in banks	5		1,169,178		—		—		1,169,178
Cash in the process of collection	5		212,842		—		—		212,842
Investment under agreements to resell	7		78,079		—		50,973		27,106
Loans and receivables from banks	9		814,209		—		99,747		714,462
Loans and receivables from customers			14,215,243		—		—		14,215,243
Held to maturity investments			190,713		147,116		43,597		—

			16,680,264		147,116		194,317		16,338,831

LIABILITIES
Current accounts and demand deposits			3,928,982		—		—		3,928,982
Transaction in the course of payment	5		145,771		—		—		145,771
Obligations under repurchase agreements	7		661,663		—		—		661,663
Time deposits and savings accounts			8,077,208		—		5,359,682		2,717,526
Borrowings from financial institutions			1,438,512		—		—		1,438,512
Debt issued			3,239,315		—		2,865,595		373,720
Other financial obligations	19		15,422		—		—		15,422

			17,506,873		—		8,225,277		9,281,596

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015


		Measurement at fair value of items not valued on a recurrent
As of December 31, 2015	Note	Estimated Fair Value		Quoted prices in active markets in identical assets (level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (level 3)
		MCh$		MCh$		MCh$		MCh$
ASSETS
Cash and deposits in banks	5		1,004,757		—		—		1,004,757
Cash in the process of collection	5		176,501		—		—		176,501
Investment under agreements to resell	7		24,674		—		14,126		10,548
Loans and receivables from banks	9		451,829		—		64,616		387,213
Loans and receivables from customers			15,389,442		—		—		15,389,442
Held to maturity investments			160,258		116,918		43,340		—

			17,207,461		116,918		122,082		16,968,461

LIABILITIES
Current accounts and demand deposits			4,393,163		—		—		4,393,163
Transaction in the course of payment	5		105,441		—		—		105,441
Obligations under repurchase agreements	7		260,631		—		—		260,631
Time deposits and savings accounts			8,476,052		—		5,403,245		3,072,807
Borrowings from financial institutions			1,523,976		—		—		1,523,976
Debt issued			3,383,606		—		3,001,142		382,464
Other financial obligations	19		14,475		—		—		14,475

			18,157,344		—		8,404,387		9,752,957

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015

NOTE ~~35—~~35- RISK MANAGEMENT

~~1. Introduction:~~

1.	Introduction:

As a result of its activities, the Bank is exposed to several types of risks mainly related to its loan portfolio and financial instruments. The following sections describe the Bank’s main business activities and policies as they relate to risk management.

Risk Management Structure:

Board of Directors

At CorpBanca, the Board of Directors plays a leading role in corporate governance. They are responsible for establishing and monitoring the Bank’s risk management structure, for which it has a corporate governance system aligned with ~~international best practices and~~ Chilean regulations, mainly from the SBIF. One of the principal functions of the Board of Directors is to monitor, evaluate and guide upper management to ensure that their actions are in line with best practices. To accomplish this, various Committees, support areas, codes and manuals have been developed, which lay out behavioral guidelines for the Bank’s associates and assist them in carrying out their functions related to controlling and managing the Bank’s risks.

Directors’ and Audit Committee

The purpose of the Directors Committee is to strengthen self-regulation within the Bank, thus improving the efficiency of the directors’ supervisory activities. This committee is responsible for, among other functions, examining accounting and financial reports, transactions with related parties and compensation of managers and senior executives.

The Audit Committee’s objective is to promote efficiency within the Bank’s internal control systems and compliance with regulations. In addition, it must reinforce and support both the function of the Bank’s Office of the Comptroller and its independence from management and serve, at the same time, as a bridge between the internal audit department and the external auditors as well as between these two groups and the Board of Directors.

At a meeting of the Board of Directors on August 30, 2011, the board agreed that the Directors’ Committee would take on additional functions of an audit committee and its name would be changed to the Directors’-Audit Committee.

Corporate Governance Committee

The Corporate Governance Committee is a consultation body of the Board of Directors whose mission is to ensure the existence and development within the Bank of the best corporate governance practices for financial entities. To this end, it is responsible for evaluating the current practices and policies, proposing and making recommendations to the Board of Directors on improvements, reforms and adjustments that it deems appropriate, also ensuring proper implementation and application of these corporate governance practices and policies defined by the Bank’s Board of Directors. The Committee performs these functions for the Bank, its divisions, its subsidiaries and its foreign entities.

This Committee is governed by its by-laws, as well as applicable SBIF regulations, general character standards from the SVS, the General Banking Law, the Corporations Law and other current laws and regulations or others issued in the future on these matters. The work of this Committee is also particularly based on the principles of the Organization for Economic Cooperation and Development (OECD) as well as of the Basel Committee on Banking Supervision with regards to good governance matters in financial companies.

Loan Committees

These committees are comprised of executives from the commercial and risk divisions as well as directors based on the required credit attributions and are intended to make decisions on different loan transactions and conditions that involve credit risk for the Bank. In addition, the highest decision-making authority the Executive Committee approves new, amended and/or updated credit policies.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Commercial Risk Committee

The objective of this Committee is to evaluate risk policies, mechanisms and procedures in place as well as to recommend measures and adjustments that help optimize the risk-return ratio for all segments within retail or consumer banking, maintaining risk in line with the returns sought by the Bank, granting flexible and specialized services that meet their customers needs. It proposes policies and strategies to improve diverse credit risk management processes in order to evaluate, rate and control the Bank’s internal processes to guarantee effective compliance and achieve proposed objectives. It reports directly to the Bank’s Board of Directors and is comprised of several directors other than the members of the Directors’-Audit Committee.

Asset-Liability Committee (ALCO)

This committee is responsible for establishing the policy framework for financial risk management, in accordance with guidelines defined by the Board of Directors and current legislation, as well as reviewing macroeconomic and financial conditions, the risks taken by the Company and the results obtained. Its main function is divided between commercial and financial matters. It approves the strategies that guide the Bank’s composition of assets and liabilities, cash inflows and outflows and transactions with financial instruments. This was done so that, after considering the diverse alternatives available, the Bank makes the decisions that ensure the highest and most sustainable returns with risk levels that are compatible with the financial business, current regulations and internal standards.

Anti-Money Laundering and Anti-Terrorism Finance Prevention Committee

Compliance Committee

The purpose of this committee is to monitor compliance with the Codes of Conduct and other complementary rules; establish and develop procedures necessary for compliance with these codes; interpret, administer and supervise compliance with these rules; and resolve any conflicts that may arise. This committee is comprised of one director; the Chief Executive Officer; the Legal Services Division Manager; the Organizational Development Division Manager and the Compliance Officer.

Office of the Comptroller

The main function of the Office of the Comptroller is to support the Board of Directors and upper management to ensure maintenance, application and proper functioning of the Bank’s internal control system, which also entails supervising compliance with rules and procedures.

Code of Conduct and Market Information Manual

CorpBanca’s objective is to continue progressing to become the best bank and have first-rate human capital. All associates and directors of CorpBanca and its subsidiaries must adhere to ethical standards based on principles and values designed to guide and maintain the highest possible standards.

In response to our clients’ trust and recognition, which are vital to our success, all associates and directors should strive to retain this trust, strictly complying with the General Code of Conduct, approved in 2008 by the Bank’s management and the Audit Committee.

~~2. Main risks affecting the Bank:~~

2.	Main risks affecting the Bank:

The main types of risks related to our business activities are market, liquidity, operational, and credit risks. The effectiveness with which we can manage the balance between risk and profitability is an important factor in determining our capability to generate sustainable profit growth on a long term basis. Our senior management focuses greatly on risk management.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

2.1 Quantitative and qualitative information about Credit Risk:

For CorpBanca, proper risk management in all areas, particularly regarding credit risk, is one of the core pillars of the Bank’s portfolio management efforts, striving to maintain a proper risk/return ratio.

CorpBanca’s credit risk management is based on the following key elements:

Loan policies.

Loan approval processes.

Sound risk culture that is consistent with the Bank’s strategy.

Regulatory and ~~preventative~~preventive outlook on risk.

Human resources with considerable expertise in loan-related decision making.

Active participation from Credit Risk Division in the approval process, using a market segmented structure.

Defined monitoring and collections processes with involvement from the Commercial, Risk, Rating and Asset Control Areas.

Dissemination of a risk culture throughout the Bank with internal and external training programs for the Commercial and Risk Areas.

The Companies Risk Division fulfills a checks-and-balances function for the commercial areas.

~~The Bank also has Credit Committees, which include Risk Managers, that determine debtor risk ratings.~~ The Bank also has Credit Committees, which include Risk Managers, that determine debtor risk ratings.

These committees define individual and group exposure levels with customers as well as mitigating conditions such as collateral, loan agreements, etc.

The Bank’s risk management tool divides its portfolio into the following categories:

Normal Risk Portfolio

Watch List Portfolio

Default Portfolio

Normal Risk Portfolio

The risk involved is reviewed at the following times:

For each loan proposal upon initial granting, renewals and for special transactions.

When deemed necessary by the Rating and Asset Control Division or the Companies Credit Risk Division.

Whenever the account executive determines that relevant changes have occurred in any of the debtor’s risk factors that may imply greater risk.

Through a monthly sample provided by the warning system.

Through periodic review by diverse centers of responsibility.

Watch List

An asset on the watch list presents weaknesses that can correct themselves, but requires special attention from each account executive and the Rating and Asset Control Division. Payment outlooks are satisfactory but may deteriorate if these weaknesses are not corrected. Loans in this category do not necessarily present expected losses for the Bank.

To safeguard the credit quality of loans, the Bank has established that the commercial segments must maintain a minimum of 5% of the Bank’s commercial portfolio on the watch list.

The watch list is managed by the Commercial Areas. These areas must comply with action plans established by the Watch List Committee.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The watch list is also reviewed by the Watch List Committee, which is composed of the Companies Credit Risk and/or Credit Risk Division Manager, Rating and Asset Control Division Manager and the corresponding Commercial Area Managers, based on the following timetable:


Every 4 months	Debtors are reviewed using these strategies:
	V1	Exit
	V2	Guarantee
	V3	Reduce

Every 6 months	V4	Continue
Every 2 months	V5	Structured exit
		If the loan remains unpaid.

The committee reviews all debtors classified individually on the watch list, which controls 93% of the Bank’s commercial portfolio on a case-by-case basis.

The Risk Manager of each commercial segment and the Rating and Asset Control Division Manager are responsible for monitoring the account executive’s compliance with action plans and any agreements made by the Watch List Committee.

Debtors on the watch list must be included in the following action plans, depending on the type of problems that affect them:


Debtors with exit plans.
The Bank made the decision to completely eliminate the risk. For these debtors, there must be a defined payment plan.		V1

Debtors with plans to increase guarantee coverage.		V2

Debtors with plans to decrease exposure.		V3
Decrease debt to an amount that is comfortable for the Bank.		V3

Debtors with monitoring plans.
Less degree of concern. Example: monitoring the capitalization of a company that is committed but not executed, one-time delays in payments, payment of claims questioned by the insurance company.		V4

Debtors with structured payment plans.		V5
Defined payment plan for all debt. Only requires monitoring that installments are paid on time.		V5

Debtors declared as satisfactory assets.		V0
They were eliminated from the system after having satisfactorily complied with agreed-upon action plans.		V0

Variables that determine the classification of an asset as on the watch list.

~~1. Using warning signs, which may include:~~

1.	Using warning signs, which may include:

Qualitative aspects of debtor (some examples)

Change of owner, partner or guarantor.

Problems between partners.

Change of marital regime of guarantors.

Change of ownership of property, plant and equipment.

Labor conflicts.

Quality of financial information.

Adverse situation in industry or market in which debtor does business.

Regulatory changes.

Damage to facilities.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Quantitative aspects of debtor (some examples)

Decrease in sales.

Decrease in gross or operating margins.

Increase in cash cycle (inventory permanence, age of receivables).

Increase in bank debt.

Significant withdrawals by partners.

Increase in investments in and receivables from related parties.

Major investment projects.

Payment behavior

Requesting continual renewals

Continuous internal overdrafts

Unpaid balances more than 30 days past due in financial system and/or past-due portfolio

Documents issued with insufficient funds

Scarce movements in current account

Unexplained labor and other violations

Number of defaults in Bank and financial system.

~~2. Debtor risk rating.~~

2.	Debtor risk rating.

When the customer should be classified in category A6 or worse.

~~3. Debtor Analysis~~

3.	Debtor Analysis

As a result of renewals of lines of credit or requests for particular loans, the commercial and financial situation are reviewed.

Who classified the debtor on the watch list?

Account Executives

Risk Managers

Loan Approval Committees

Past-due Portfolio Committee

Rating and Asset Control Manager

Commercial Managers

To whom was the request for classification made?

Rating and Asset Control Manager

Who changes payment plans for debtors on the watch list or removes customers from the list?

The Rating and Asset Control Division is the only entity that can change, modify or exclude a customer from the watch list.

How is a customer removed from the watch list?

The request is submitted to the committee, which then studies the information and approves or rejects the request.

How is the Commercial Area informed of the committee’s agreements?

Through minutes issued by the Rating and Asset Control Manager.

Default Portfolio

This includes the entire portfolio managed by the Normalization Division. All customers with individual ratings of C1 or worse and all customers that have defaulted on any loan as a result of payment capacity problems, regardless of their rating, should be transferred to this division.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The Rating and Asset Control Division reviews compliance with this provision on a monthly basis.

This portfolio is ~~revised~~reviewed by the Rating and Asset Control Division each month.

Derivative Instruments

The Bank has strict controls for derivative contracts negotiated directly with its counterparties. Credit risk is limited to the fair value of contracts that are favorable for the Bank (asset position), which only represents a small fraction of the notional values of those instruments. This exposure to credit risk is managed as part of the loan limits for customers, together with potential exposure from market fluctuations. In order to mitigate risk, the Bank tends to operate with counterparty deposit margins.

Contingent Commitments

The Bank operates with diverse instruments that, although they are exposed to credit risk, are not reflected in the balance sheet. These include guarantors and pledges, documentary letters of credit, bank guarantees and commitments to grant loans.

Cosignatories and sureties represent an irrevocable payment obligation. In the event that a customer with a co-signer does not fulfill its obligations with third parties guaranteed by the Bank, this will affect the corresponding payments so that these transactions represent the same exposure to credit risk as a common loan.

Documentary letters of credit are commitments documented by the Bank on behalf of a customer that are guaranteed by merchandise on board, which therefore have less risk than direct indebtedness. Bank guarantees are contingent commitments that take effect only if the customer does not comply with a commitment made with a third party, guaranteed by them.

Regarding commitments to grant loans, the Bank is potentially exposed to losses equivalent to the unused total of the commitment. However, the likely amount of the loss is less than the unused total of the commitment. The Bank monitors the maturity of lines of credit because generally long-term commitments have greater credit risk than short-term commitments.

Financial Instruments

For this type of asset, the Bank measures the probability of not being able to collect from issuers using internal and external ratings such as risk rating agencies that are independent from the Bank.

Maximum Exposure to Credit Risk

The following table presents the distribution, by financial asset, of our maximum exposure to credit risk, as of December 31, ~~2013~~2014 and ~~2014,~~2015, for different balance sheet components, including derivatives, and without deducting security interests in personal or real property or other credit improvements.


							Maximum Exposure
		Maximum Exposure				Notes	2014		2015
	Notes	2013		2014			MCh$		MCh$
		MCh$		MCh$
Loans and receivables from banks	9		217,944		814,209	9		814,209		451,829
Loans and receivables from customers	10		12,771,642		13,892,270	10		13,892,270		14,454,357
Derivative financial instruments	8		376,280		766,799	8		766,799		1,008,915
Investments under agreements to resell	7		201,665		78,079	7		78,079		24,674
Financial investments available-for-sale	11		889,087		1,156,896	11		1,156,896		1,924,788
Held to maturity investments	11		237,522		190,677	11		190,677		170,191
Other assets	16		293,118		415,267	16		415,267		438,323

For more detail on maximum credit risk exposure and concentration by type of financial instrument, see the specific notes.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The following table displays the concentration of credit risk by industry for financial assets:


																			As of December 31, 2014							As of December 31, 2015
		As of December 31, 2013							As of December 31, 2014							Notes			Maximum gross exposure		Maximum net exposure (1)		%			Maximum gross exposure		Maximum net exposure (1)		%
	Notes	Maximum gross exposure		Maximum net exposure (1)		%			Maximum gross exposure		Maximum net exposure (1)		%						MCh$		MCh$					MCh$		MCh$
		MCh$		MCh$					MCh$		MCh$
Manufacturing			831,804		823,633		8.96	%		1,077,362		1,067,420		10.68	%					1,077,362		1,067,420		10.68	%		879,875		863,100		8.23	%
Mining			786,261		778,537		8.47	%		629,716		624,517		6.24	%					629,716		624,517		6.24	%		766,707		752,089		7.17	%
Electricity, gas and water			497,617		492,729		5.36	%		757,220		750,519		7.50	%					757,220		750,519		7.50	%		697,735		684,432		6.52	%
Agriculture and Livestock			302,914		299,938		3.26	%		303,029		300,132		3.00	%					303,029		300,132		3.00	%		363,521		356,590		3.40	%
Forestry and wood extraction			32,525		32,205		0.35	%		56,129		54,996		0.56	%					56,129		54,996		0.56	%		44,023		43,184		0.41	%
Fishing			1,212		1,200		0.01	%		2,199		2,154		0.02	%					2,199		2,154		0.02	%		3,252		3,190		0.03	%
Transport			362,074		358,516		3.90	%		328,718		325,302		3.26	%					328,718		325,302		3.26	%		348,126		341,490		3.25	%
Communications			115,094		113,963		1.24	%		94,681		93,843		0.94	%					94,681		93,843		0.94	%		61,978		60,795		0.58	%
Construction			1,111,890		1,100,965		11.97	%		1,102,304		1,090,783		10.92	%					1,102,304		1,090,783		10.92	%		1,206,117		1,183,122		11.28	%
Commerce			1,469,125		1,454,694		15.82	%		1,358,838		1,345,358		13.47	%					1,358,838		1,345,358		13.47	%		1,309,427		1,284,462		12.24	%
Services			3,676,696		3,640,575		39.60	%		3,925,713		3,888,321		38.91	%					3,925,713		3,888,321		38.91	%		4,358,553		4,340,671		40.75	%
Others			98,244		97,147		1.06	%		454,566		451,121		4.50	%					454,566		451,121		4.50	%		657,204		644,672		6.14	%

Subtotal Commercial Loans	10 a)		9,285,456		9,194,102		100	%		10,090,475		9,994,466		100	%		10 a	)		10,090,475		9,994,466		100	%		10,696,518		10,557,797		100	%
Consumer Loans	10 a)		1,623,249		1,595,532					1,709,842		1,676,008					10 a	)		1,709,842		1,676,008					1,703,159		1,676,773
Mortgage Loans	10 a)		1,988,976		1,982,008					2,229,558		2,221,796					10 a	)		2,229,558		2,221,796					2,228,619		2,219,787

Total			12,897,681		12,771,642					14,029,875		13,892,270								14,029,875		13,892,270					14,628,296		14,454,357

(1)	Net of allowances

Guarantees

In order to mitigate credit risk, guarantees have been established in the Bank’s favor. The main guarantees provided by customers are detailed as follows:

For loans to companies, the main guarantees are:

Machinery and/or equipment

Projects under construction, buildings with specific purposes and urban plots or land.

For loans to individuals, the main guarantees are:

Houses,

~~Apartments~~ and

~~Automobiles.~~Apartments.

Credit quality by financial asset class

With regard to the quality of credits, these are described consistent with the standards issued by the Superintendency ~~for~~of Banks and Financial Institutions. A detail by credit quality is summarized as follows:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


	Individual Portfolio																				Group Portfolio									Individual Portfolio																													Group Portfolio
As of December 31, 2013	Normal Portfolio												Impaired Portfolio						Total		Normal Portfolio		Impaired Portfolio		Total
As of December 31, 2014																														Normal Portfolio																	Impaired Portfolio (*)									Total			Normal Portfolio			Impaired Portfolio			Total
																														A1		A2			A3			A4			A5			A6			B1			B2			Impaired															General Total
	A1		A2		A3		A4		A5		A6		B1		B2		Impaired										General Total			MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		Note
Loans and receivables from banks		140,017		30,469		47,595		—		—		—		—		—		—		218,081		—		—		—		218,081	9		620,047		145,363			44,820			4,250			—			—			—			—			—			814,480			—			—			—			814,480
Loans and receivable from customers
Commercial loans:
Provisions																															—		(99	)		(98	)		(74	)		—			—			—			—			—			(271	)								—			(271	)
%																															—		0.07	%		0.22	%		1.74	%		—			—			—			—			—			0.03	%		—			—			—			0.03	%

Loans and receivable from customers Commercial loans:
General Commercial loans		190,904		1,309,328		2,544,546		2,158,738		613,593		39,635		188,112		32,088		197,290		7,274,234		370,666		44,527		415,193		7,689,427			—		440,672			1,715,679			3,006,527			2,092,385			244,994			142,492			51,957			203,352			7,898,058			357,032			47,988			405,020			8,303,078
Foreign Trade loans		14,671		141,600		159,657		63,862		21,765		—		12,900		2,737		31,505		448,697		10,050		327		10,377		459,074			—		6,821			160,843			177,597			88,026			8,926			28,230			1,243			23,993			495,679			9,497			375			9,872			505,551
Lines of credit and overdrafts		1		1,592		4,833		7,530		1,629		154		201		33		566		16,539		10,952		444		11,396		27,935			—		—			8,235			7,008			3,918			264			413			123			1,118			21,079			12,162			1,609			13,771			34,850
Factored receivables		—		1,501		32,596		31,539		1,160		—		718		—		172		67,686		7,588		110		7,698		75,384			—		—			4,574			30,570			28,474			481			29			—			65			64,193			5,643			78			5,721			69,914
Leasing contracts		1,031		11,664		146,350		339,226		139,767		8,497		29,465		3,752		31,979		711,731		94,132		6,019		100,151		811,882			—		6,762			69,110			309,153			285,389			31,491			33,432			12,244			34,070			781,651			79,812			5,029			84,841			866,492
Other outstanding loans		1		277		2,692		4,660		1,594		49		205		46		949		10,473		210,798		483		211,281		221,754			2		168			1,686			1,943			1,837			141			86			54			1,560			7,477			302,521			592			303,113			310,590

Subtotal Commercial loans		206,608		1,465,962		2,890,674		2,605,555		779,508		48,335		231,601		38,656		262,461		8,529,360		704,186		51,910		756,096		9,285,456	10 a)		2		454,423			1,960,127			3,532,798			2,500,029			286,297			204,682			65,621			264,158			9,268,137			766,667			55,671			822,338			10,090,475
Provisions																															—		(139	)		(1,466	)		(16,856	)		(18,782	)		(2,891	)		(4,246	)		(3,331	)		(33,151	)		(80,862	)		(6,163	)		(8,984	)		(15,147	)		(96,009	)
%																																	0.03	%		0.07	%		0.48	%		0.75	%		1.01	%		2.07	%		5.08	%		12.55	%		0.87	%		0.80	%		16.14	%		1.84	%		0.95	%

Consumer loans		—		—		—		—		—		—		—		—		—		—		1,579,321		43,928		1,623,249		1,623,249	10 a)		—		—			—			—			—			—			—			—			—			—			1,660,853			48,989			1,709,842			1,709,842
Provisions																															—		—			—			—			—			—			—			—			—			—			(21,399	)		(12,435	)		(33,834	)		(33,834	)
%																															—		—			—			—			—			—			—			—			—			—			1.29	%		25.38	%		1.98	%		1.98	%

Mortgage loans		—		—		—		—		—		—		—		—		—		—		1,954,173		34,803		1,988,976		1,988,976	10 a)		—		—			—			—			—			—			—			—			—			—			2,192,177			37,381			2,229,558			2,229,558
Provisions																															—		—			—			—			—			—			—			—			—			—			(5,029	)		(2,733	)		(7,762	)		(7,762	)
%																															—		—			—			—			—			—			—			—			—			—			0.23	%		7.31	%		0.35	%		0.35	%

Total Loans and receivable to customers		206,608		1,465,962		2,890,674		2,605,555		779,508		48,335		231,601		38,656		262,461		8,529,360		4,237,680		130,641		4,368,321		12,897,681
Financial investments		—		—		—		—		—		—		—		—						—		—		—		—

Total loans and receivable to customers																															2		454,423			1,960,127			3,532,798			2,500,029			286,297			204,682			65,621			264,158			9,268,137			4,619,697			142,041			4,761,738			14,029,875
Provisions																															—		(139	)		(1,466	)		(16,856	)		(18,782	)		(2,891	)		(4,246	)		(3,331	)		(33,151	)		(81,133	)		(32,591	)		(24,152	)		(56,743	)		(137,605	)
%Provisions																																	0.03	%		0.07	%		0.48	%		0.75	%		1.01	%		2.07	%		5.08	%		12.55	%		0.88	%		0.71	%		17.00	%		1.19	%		0.98	%

(*)	B1 and B2: Customers who have financial difficulties but still are not impaired.

Impaired: Customers who have financial difficulties and are impaired.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


	Individual Portfolio																				Group Portfolio									Individual Portfolio																													Group Portfolio
As of December 31, 2014	Normal Portfolio												Impaired Portfolio								Normal Portfolio		Impaired Portfolio
As of December 31, 2015																														Normal Portfolio																	Impaired Portfolio (*)												Normal Portfolio			Impaired Portfolio
																														A1		A2			A3			A4			A5			A6			B1			B2			Impaired			Total									Total			General Total
	A1		A2		A3		A4		A5		A6		B1		B2		Impaired		Total						Total		General Total			MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		Note
Loans and receivables from banks		620,047		145,363		44,820		4,250		—		—		—		—		—		814,480		—		—		—		814,480	9		308,028		64,652			21,379			58,010			—			—			—			—			—			452,069			—			—			—			452,069
Loans and receivable from customers
Commercial loans:
Provisions																															—		(111	)		(129	)		—																		(240	)		—			—			—			(240	)
%Provisions																															—		0.17	%		0.60	%		—			—			—			—			—			—			0.05	%		—			—			—			0.05	%

Loans and receivable from customers Commercial loans:
General Commercial loans		—		440,672		1,715,679		3,006,527		2,092,385		244,994		142,492		51,957		203,352		7,898,058		357,032		47,988		405,020		8,303,078			—		337,942			1,902,372			2,982,307			2,181,402			303,679			122,571			73,698			207,409			8,111,380			627,823			82,657			710,480			8,821,860
Foreign Trade loans		—		6,821		160,843		177,597		88,026		8,926		28,230		1,243		23,993		495,679		9,497		375		9,872		505,551			—		3,558			142,449			148,669			82,726			24,727			33,564			11,082			18,368			465,143			55,512			684			56,196			521,339
Lines of credit and overdrafts		—		—		8,235		7,008		3,918		264		413		123		1,118		21,079		12,162		1,609		13,771		34,850			—		—			390			7,837			3,760			184			61			25			757			13,014			13,267			2,451			15,718			28,732
Factored receivables		—		—		4,574		30,570		28,474		481		29		—		65		64,193		5,643		78		5,721		69,914			—		—			1,236			30,918			13,182			38			670			—			49			46,093			15,537			383			15,920			62,013
Leasing contracts		—		6,762		69,110		309,153		285,389		31,491		33,432		12,244		34,070		781,651		79,812		5,029		84,841		866,492			—		7,924			46,238			257,945			305,434			54,407			27,788			7,737			46,284			753,757			126,939			7,493			134,432			888,189
Other outstanding loans		2		168		1,686		1,943		1,837		141		86		54		1,560		7,477		302,521		592		303,113		310,590			—		182			547			3,921			2,633			157			79			338			1,469			9,326			351,622			13,437			365,059			374,385
Subtotal Commercial loans																															—		349,606			2,093,232			3,431,597			2,589,137			383,192			184,733			92,880			274,336			9,398,713			1,190,700			107,105			1,297,805			10,696,518
Provisions																															—		(99	)		(1,602	)		(10,957	)		(16,776	)		(9,790	)		(3,918	)		(18,921	)		(59,439	)		(121,502	)		(8,197	)		(9,022	)		(17,219	)		(138,721	)
%Provisions																															—		0.03	%		0.08	%		0.32	%		0.65	%		2.55	%		2.12	%		20.37	%		21.67	%		1.29	%		0.69	%		8.42	%		1.33	%		1.30	%

Subtotal Commercial loans		2		454,423		1,960,127		3,532,798		2,500,029		286,297		204,682		65,621		264,158		9,268,137		766,667		55,671		822,338		10,090,475	10 a)
Consumer loans		—		—		—		—		—		—		—		—		—		—		1,660,853		48,989		1,709,842		1,709,842	10 a)		—		—			—			—			—			—			—			—			—			—			1,660,349			42,810			1,703,159			1,703,159
Provisions																															—		—			—			—			—			—			—			—			—			—			(21,186	)		(5,200	)		(26,386	)		(26,386	)
%Provisions																															—		—			—			—			—			—			—			—			—			—			1.28	%		12.15	%		1.55	%		1.55	%

Mortgage loans		—		—		—		—		—		—		—		—		—		—		2,192,177		37,381		2,229,558		2,229,558	10 a)		—		—			—			—			—			—			—			—			—			—			2,192,888			35,731			2,228,619			2,228,619
Provisions																															—		—			—			—			—			—			—			—			—			—			(5,616	)		(3,216	)		(8,832	)		(8,832	)
%Provisions																															—		—			—			—			—			—			—			—			—			—			0.26	%		9.00	%		0.40	%		0.40	%


Total loans and receivable to customers		2		454,423		1,960,127		3,532,798		2,500,029		286,297		204,682		65,621		264,158		9,268,137		4,619,697		142,041		4,761,738		14,029,875			—		349,606			2,093,232			3,431,597			2,589,137			383,192			184,733			92,880			274,336			9,398,713			5,043,937			185,646			5,229,583			14,628,296
Provisions																															—		(99	)		(1,602	)		(10,957	)		(16,776	)		(9,790	)#		(3,918	)		(18,921	)		(59,439	)		(121,502	)		(34,999	)		(17,438	)		(52,437	)		(173,939	)
%Provisions																															—		0.03	%		0.08	%		0.32	%		0.65	%		2.55	%		2.12	%		20.37	%		21.67	%		1.29	%		0.69	%		9.39	%		1.00	%		1.19	%

Financial investments		—		—		—		—		—		—		—		—		—		—		—		—		—		—			—		—			—			—			—			—			—			—			—			—			—			—			—			—

(*)	B1 and B2: Customers who have financial difficulties but still are not impaired.

Impaired: Customers who have financial difficulties and are impaired.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The overdue analysis by financial asset class is as follows:


	As of December 31, 2013
	1-29 days		30-89 days		90 days or more		Total
	MCh$		MCh$		MCh$		MCh$
Loans and receivables to banks		—		—		—		—
Loans and receivables to customers:
Commercial loans		50,380		14,200		52,036		116,616
Mortgage loans		1,493		1,108		4,614		7,215
Consumer loans		26,007		7,449		7,441		40,897
Financial investments		—		—		—		—

Total		77,880		22,757		64,091		164,728

									As of December 31, 2014
	As of December 31, 2014								1-29 days		30-89 days		90 days or more		Total
	1-29 days		30-89 days		90 days or more		Total		MCh$		MCh$		MCh$		MCh$
	MCh$		MCh$		MCh$		MCh$
Loans and receivables to banks		—		—		—		—		—		—		—		—
Loans and receivables to customers:
Commercial loans		56,977		20,998		73,705		151,680		56,977		20,998		73,705		151,680
Mortgage loans		1,778		974		4,629		7,381		1,778		974		4,629		7,381
Consumer loans		32,367		14,915		4,316		51,598		32,367		14,915		4,316		51,598
Financial investments		—		—		—		—		—		—		—		—

Total		91,122		36,887		82,650		210,659		91,122		36,887		82,650		210,659


	As of December 31, 2015
	1-29 days		30-89 days		90 days or more		Total
	MCh$		MCh$		MCh$		MCh$

Loans and receivables to banks		—		—		—		—
Loans and receivables to customers:
Commercial loans		41,108		29,628		96,047		166,783
Mortgage loans		1,407		970		4,724		7,101
Consumer loans		31,846		14,569		4,126		50,541
Financial investments		—		—		—		—

Total		74,361		45,167		104,897		224,425

The fair value of the collateral of overdue but not impaired loans was MCh$301,965 as of December 31, 2015 (MCh$857,110 as of December 31, ~~2014 (MCh$445,889 as of December 31, 2013)~~2014).

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2012~~2014 and ~~2013~~2015 and for the years ended

December 31, ~~2011, 2012~~2013, 2014 and ~~2013~~2015

The following tables details assets and liabilities by currency as of December 31, ~~2013~~2014 and ~~2014:~~2015:


As of December 31, 2013	Notes		US$			Euro		Yen		Sterling pound		Colombian pesos		Other currencies		UF		Pesos			TC		Total
As of December 31, 2014																									Notes	US$			Euro		Yen			Sterling pound		Colombian pesos		Other currencies		UF		Pesos			ER(*)
																										MCh$			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$			MCh$
			MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$
Cash and due from bank		5		172,340			3,625		98		67		595,663		390		—		138,905			—		911,088	5		399,755			11,675		1,293			30		622,248		265		—		133,912			—
Cash in the process of collection		5		30,380			1,529		—		2,214		727		167		—		77,738			—		112,755	5		51,716			1,865		—			486		7,433		41		—		151,301			—
Trading portfolio financial assets		6		—			—		—		3		390,706		—		9,310		31,664			—		431,683	6		82,316			—		—			—		571,089		—		5,434		27,059			—
Investments under agreements to resell		7		—			—		—		—		190,005		—		772		10,888			—		201,665	7		—			—		—			—		50,973		—		272		26,834			—
Derivative financial instruments		8		191,371			—		—		—		36,507		—		—		148,402			—		376,280	8		338,506			—		—			—		115,515		—		—		312,778			—
Loans and receivables from banks		9		63,716			—		—		—		14,223		—		—		140,005			—		217,944	9		91,958			—		—			—		102,204		—		—		620,047			—
Loans and receivables from customers		10		1,205,734			4,039		—		240		4,985,764		—		3,676,190		2,885,446			14,229		12,771,642	10		1,501,179			2,586		—			—		5,044,193		6		3,903,662		3,430,948			9,696
Financial investments available-for-sale		11		74,381			—		—		—		255,782		—		201,724		349,001			8,199		889,087	11		43,068			—		—			—		479,103		—		220,478		404,580			9,667
Held to maturity investments		11		10,563			—		—		—		218,327		—		8,632		—			—		237,522	11		24,275			—		—			—		159,227		—		7,175		—			—
Investments in other companies		12		—			—		—		—		9,451		—		—		4,471			—		13,922	12		—			—		—			—		5,520		—		—		10,322			—
Intangible assets		13		118			—		—		—		360,020		—		—		481,232			—		841,370	13		103			—		—			—		321,029		—		—		436,645			—
Property, plant and equipment		14		1,140			—		—		—		60,792		—		—		36,310			—		98,242	14		1,345			—		—			—		52,502		—		—		38,795			—
Current taxes		15		—			—		—		—		—		—		—		—			—		—	15		—			—		—			—		20,834		—		—		—			—
Deferred income taxes		15		787			—		—		—		52,005		—		—		36,426			—		89,218	15		2,702			—		—			—		—		—		—		—			—
Other Assets		16		54,652			—		—		—		44,413		—		8		194,045			—		293,118	16		126,277			—		—			—		83,536		—		6		205,448			—

Total Assets				1,805,182			9,193		98		2,524		7,214,385		557		3,896,636		4,534,533			22,428		17,485,536			2,663,200			16,126		1,293			516		7,635,406		312		4,137,027		5,798,669			19,363


Current accounts and demand deposits		17		91,314			1,272		—		1		2,492,576		11		11,602		854,607			—		3,451,383	17		120,915			2,588		—			9		2,863,024		64		10,117		958,231			—
Cash in the process of collection		5		11,434			1,371		—		54		698		57		—		43,738			—		57,352
Transaction in the course of payment																									5		75,017			1,782		1,617			15		205		128		—		67,007			—
Obligations under repurchase agreements		7		10,899			—		—		—		256,455		—		—		75,091			—		342,445	7		131			—		—			—		652,804		—		—		8,728			—
Time deposits and saving accounts		17		626,742			267		—		—		2,537,342		—		377,280		3,796,071			1		7,337,703	17		1,024,704			8,388		—			—		2,237,371		—		527,356		4,279,146			1
Derivative financial instruments		8		137,037			—		—		—		19,922		—		32		124,592			—		281,583	8		268,071			—		—			—		80,876		—		640		258,096			—
Borrowings from financial institutions		18		836,699			3,326		—		240		433,857		—		—		282			—		1,273,840	18		1,025,646			3,308		—			—		402,969		—		—		—			—
Debt issued		19		382,466			—		—		—		347,909		—		1,637,283		46,899			—		2,414,557	19		892,149			—		—			—		373,720		—		1,766,196		46,985			—
Other financial obligations		19		—			—		—		—		1,122		—		6,224		8,840			621		16,807	19		—			—		—			—		1,371		—		4,552		9,286			213
Current income tax provision		15		715			—		—		—		17,695		—		—		26,748			—		45,158	15		517			—		—			—		—		—		—		18,709			—
Deferred income taxes		15		104			—		—		—		85,822		—		—		96,447			—		182,373	15		—			—		—			—		27,809		—		—		48,784			—
Provisions		20		3,424			—		—		—		67,386		—		—		94,122			—		164,932	20		5,764			—		—			—		44,657		—		—		149,868			—
Other Liabilities		21		92,877			2,766		98		2,226		59,543		351		914		26,731			—		185,506	21		27,988			—		—			—		69,261		—		502		112,965			—

Total Liabilities				2,193,711			9,002		98		2,521		6,320,327		419		2,033,335		5,193,604			622		15,753,639			3,440,902			16,066		1,617			24		6,754,067		192		2,309,363		5,957,805			214


Net Assets (liabilities)				(388,529	)		191		—		3		894,058		138		1,863,301		(659,071	)		21,806		1,731,897			(777,702	)		60		(324	)		492		881,339		120		1,827,664		(159,136	)		19,149
Contingent loans		22		1,318,986			12,127		78		—		1,012,045		—		158,588		250,105			—		2,751,929	22		459,290			17,061		1,225			—		1,016,737		—		282,259		1,414,863			—

Net asset (liability) position				930,457			12,318		78		3		1,906,103		138		2,021,889		408,966			21,806		4,483,826			(318,412	)		17,121		901			492		1,898,076		120		2,109,923		1,255,727			19,149

(*)	exchange rate

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2012~~2014 and ~~2013~~2015 and for the years ended

December 31, ~~2011, 2012~~2013, 2014 and ~~2013~~2015


As of December 31, 2014	Notes		US$			Euro		Yen			Sterling pound		Colombian pesos		Other currencies		UF		Pesos			TC		Total
As of December 31, 2015																										Notes	US$			Euro			Yen		Sterling Pound		Colombian Pesos		Other Currencies		UF		Pesos			ER(*)
																											MCh$			MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$
			MCh$			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$
Cash and due from bank		5		399,755			11,675		1,293			30		622,248		265		—		133,912			—		1,169,178	5		294,317			6,212			72		121		522,118		354		—		181,563			—
Cash in the process of collection		5		51,716			1,865		—			486		7,433		41		—		151,301			—		212,842	5		79,335			2,174			—		100		3,056		241		—		91,595			—
Trading portfolio financial assets		6		82,316			—		—			—		571,089		—		5,434		27,059			—		685,898	6		—			—			—		—		256,440		—		24,895		42,564			—
Investments under agreements to resell		7		—			—		—			—		50,973		—		272		26,834			—		78,079	7		—			—			—		—		14,126		—		—		10,548			—
Derivative financial instruments		8		338,506			—		—			—		115,515		—		—		312,778			—		766,799	8		502,519			—			—		—		164,095		—		—		342,301			—
Loans and receivables from banks		9		91,958			—		—			—		102,204		—		—		620,047			—		814,209	9		79,185			—			—		—		64,616		—		—		308,028			—
Loans and receivables from customers		10		1,501,179			2,586		—			—		5,044,193		6		3,903,662		3,430,948			9,696		13,892,270	10		1,671,859			3,375			—		—		4,981,415		—		4,060,651		3,736,532			525
Financial investments available-for-sale		11		43,068			—		—			—		479,103		—		220,478		404,580			9,667		1,156,896	11		76,383			—			—		—		926,865		—		577,264		333,345			10,931
Held to maturity investments		11		24,275			—		—			—		159,227		—		7,175		—			—		190,677	11		7,246			—			—		—		157,402		—		5,543		—			—
Investments in other companies		12		—			—		—			—		5,520		—		—		10,322			—		15,842	12		—			—			—		—		4,578		—		—		10,070			—
Intangible assets		13		103			—		—			—		321,029		—		—		436,645			—		757,777	13		99			—			—		—		286,769		—		—		378,396			—
Property, plant and equipment		14		1,345			—		—			—		52,502		—		—		38,795			—		92,642	14		1,391			—			—		—		49,657		—		—		40,582			—
Current taxes		15		1,018			—		—			—		590		—		—		—			—		1,608	15		—			—			—		—		46,904		—		—		—			—
Deferred income taxes		15		2,765			—		—			—		58,004		—		—		46,274			—		107,043	15		8,248			—			—		—		—		—		—		423			—
Other Assets		16		126,277			—		—			—		83,536		—		6		205,448			—		415,267	16		162,593			—			—		—		126,537		—		4		149,189			—

Total Assets				2,664,281			16,126		1,293			516		7,673,166		312		4,137,027		5,844,943			19,363		20,357,027			2,883,175			11,761			72		221		7,604,578		595		4,668,357		5,625,136			11,456


Current accounts and demand deposits		17		120,915			2,588		—			9		2,863,024		64		10,117		958,231			—		3,954,948	17		306,508			3,974			—		—		3,086,338		53		10,045		1,024,701			—
Cash in the process of collection		5		75,017			1,782		1,617			15		205		128		—		67,007			—		145,771
Transaction in the course of payment																										5		14,082			6,289			—		16		—		238		—		84,816			—
Obligations under repurchase agreements		7		131			—		—			—		652,804		—		—		8,728			—		661,663	7		109			—			—		—		240,385		—		—		20,137			—
Time deposits and saving accounts		17		1,024,704			8,388		—			—		2,237,371		—		527,356		4,279,146			1		8,076,966	17		1,156,878			268			—		—		2,377,700		—		581,482		4,379,275			—
Derivative financial instruments		8		268,071			—		—			—		80,876		—		640		258,096			—		607,683	8		342,583			—			—		—		101,995		—		540		285,996			—
Borrowings from financial institutions		18		1,025,646			3,308		—			—		402,969		—		—		—			—		1,431,923	18		1,059,591			2,422			—		—		466,572		—		—		—			—
Debt issued		19		892,149			—		—			—		373,720		—		1,766,196		46,985			—		3,079,050	19		1,050,149			—			—		—		342,519		—		1,764,207		70,679			—
Other financial obligations		19		—			—		—			—		1,371		—		4,552		9,286			213		15,422	19		—			—			—		—		1,610		—		3,016		9,849			—
Current income tax provision		15		—			—		—			—		—		—		—		—			—		—	15		718			—			—		—		—		—		—		41,739			—
Deferred income taxes		15		63			—		—			—		92,206		—		—		88,665			—		180,934	15		—			—			—		—		40,433		—		—		—			—
Provisions		20		5,764			—		—			—		44,657		—		—		149,868			—		200,289	20		4,892			—			—		—		64,686		—		—		113,129			—
Other Liabilities		21		27,988			—		—			—		69,261		—		502		112,965			—		210,716	21		36,663			—			—		—		68,339		—		—		104,437			—

Total Liabilities				3,440,448			16,066		1,617			24		6,818,464		192		2,309,363		5,978,977			214		18,565,365			3,972,173			12,953			—		16		6,790,577		291		2,359,290		6,134,758			—


Net Assets (liabilities)				(776,167	)		60		(324	)		492		854,702		120		1,827,664		(134,034	)		19,149		1,791,662			(1,088,998	)		(1,192	)		72		205		814,001		304		2,309,067		(509,622	)		11,456
Contingent loans		22		459,290			17,061		1,225			—		1,016,737		—		282,259		1,414,863			—		3,191,435	22		608,029			7,413			728		—		904,259		—		354,929		1,410,053			—

Net asset (liability) position				(316,877	)		17,121		901			492		1,871,439		120		2,109,923		1,280,829			19,149		4,983,097			(480,969	)		6,221			800		205		1,718,260		304		2,663,996		900,431			11,456

(*)	exchange rate

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FINANCIAL RISK MANAGEMENT

Definition and Principles of Financial Risk Management

Market Risk

Definition

Decisions as to how to manage these risks are reviewed by committees, the most important of which is the Asset-Liability Committee (ALCO).

Each of the activities are measured, analyzed and reported on a daily basis using different metrics to ascertain their risk profiles.

The following section describes the main risk factors along with the tools we use to monitor the most important impacts of market risk factors to which the Bank and its subsidiaries are exposed.

(1)

Risk Factors

~~(a)~~i.

Foreign Exchange Risk

Foreign exchange risk is the exposure to adverse movements in the exchange rates of currencies other than the base currency for all balance sheet and off-balance sheet positions.

The main sources of foreign exchange risk are:

Positions in foreign currency (FX) within the trading book.

Currency mismatches between assets and liabilities in the banking book.

Cash flow mismatches in different currencies.

~~(b)~~ii.

Indexation Rate Risk

Indexation risk is the exposure to changes in indexed units (e.g. UF, UVR or others) linked to domestic or foreign currency in which any instruments, contracts or other transactions recorded in the balance sheet may be denominated.

~~(c)~~iii.

Interest Rate Risk

Interest rate risk is the exposure to movements in market interest rates. Changes in market interest rates can affect both the price of trading instruments and the net interest margin and other gains from the banking book such as fees. Likewise, fluctuations in interest rates can affect the underlying value of the Bank’s assets and liabilities and of derivative instruments that are recorded off balance sheet at fair value.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Interest rate risk can be represented by sensitivities to parallel and/or non-parallel yield shifts with the effects reflected in the prices of instruments, the financial margin and equity.

Movements in interest rates can be explained by at least the following risk factors:

Systemic risk

Funding liquidity risk

Credit risk

Specific risk.

~~(d)~~iv.

Prepayment or Call Risk

~~(e)~~v.

Underwriting Risk

~~(f)~~vi.

Correlation Risk

~~(g)~~vii.

Market Liquidity Risk

~~(h)~~viii.

Volatility Risk

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Management Principles

The following principles govern the market risk management efforts of CorpBanca and its subsidiaries:

The Bank’s organizational structure must ensure effective segregation of duties so that trading, monitoring, accounting and risk measurement and management are performed and reported independently using a dual-control system.

Trading of new products and participation in new markets can only take place if:

The product has been approved by the Bank’s New Product Committee.

A full assessment has been conducted to determine if the activity falls within the bank’s general risk tolerance and specific commercial objectives.

Proper controls and limits have been set for that activity.

The limits, terms and conditions stipulated in the authorizations are monitored on a daily basis and any excesses are reported no later than the following day.

Trading positions are valued each day at fair value in accordance with the Valuation Policy.

All trades must be executed at current market rates.

Funding Liquidity Risk

Definition

Funding liquidity risk is the exposure of the Bank and its subsidiaries to events that affect their ability to meet, in a timely manner and at reasonable costs, cash payment obligations arising from maturities of time deposits that are not renewed, withdrawals from demand accounts, maturities or settlements of derivatives, liquidations of investments or any other payment obligation.

Appropriately managing funding liquidity risk not only allows contractual obligations to be met in a timely manner, but also enables:

The liquidation of positions, when it so decides, to occur without significant losses.

The commercial and treasury activities of the Bank and its subsidiaries to be financed at competitive rates.

The Bank to avoid fines or regulatory sanctions for not complying with regulations.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Management Principles

The principles used to manage funding liquidity risk include:

Balancing strategic liquidity objectives with corporate profitability objectives, designing and implementing investment and financing strategies to compete with our key competitors.

Designing policies, limits and procedures in accordance with banking regulations, internal rules and CorpBanca’s strategic business objectives.

Clearly establishing liquidity risk tolerance appropriate for its business strategy and its size within the financial system.

The Bank has a financing strategy that promotes effective diversification of funding sources and maturities. It maintains a continuous presence in the funding market with correspondent banks and select customers, maintaining close relationships and promoting diversification of funding sources. It also keeps appropriate lines of financing available, ensuring its ability to obtain liquid resources quickly. The Bank has identified the main factors of vulnerability that affect its ability to secure funds and monitors the validity of the assumptions behind estimates for obtaining funding.

Others

•

The maturity analysis of financial assets and liabilities are in Note 36Maturity of assets and liabilities.

For further information on funding liquidity risk see page F- 219.

Counterparty Risk

The Bank diversifies credit risk by placing limits on the concentration of this risk in any one individual debtor, debtor group, product, industry segment or country. Such risks are continuously monitored and the limits by debtor, debtor group, product, industry and country are reviewed at least once per year and approved by the respective committees.

Exposure to credit risk is evaluated using an individual analysis of the payment capacity of debtors and potential debtors to meet their obligations on time and as agreed.

Furthermore, the Bank has strict controls for derivative contracts negotiated directly with its counterparties. This exposure is managed using limits per customer based on a risk methodology equivalent to credit risk exposure. Lastly, the values of derivatives are adjusted to reflect the expected loss from the counterparty.

~~B. Corporate Governance Structure~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and ~~Committees~~2015 and for the years ended

December 31, 2013, 2014 and 2015

Offsetting financial assets and liabilities

The Bank should offset a financial asset and a financial liability and the net amount presented in the statement of financial position when and only when:

i.- currently has a legally enforceable right to set off the recognized amounts; and

ii.- intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

As of December 31, 2015

Finnancial Instruments offset in the Statement of
Financial Position.

Finnancial Instruments not
offset in the Statement of
Financial Position.
(3)

Gross amount
(1)

Amounts
offset

(2)

Net amounts
reported in the
Statement of
Financial Position.

Amounts to
offset

(4)

Financial
guarantees
(5)

Net amounts
(Total)

(a)

(b)

(d)

(e)

(f) = (c) - (d) - (e)

Finnancial Instruments

MM$

Note

MM$

Note

MM$

Financial derivative contracts

Assets

1,008,915

—

1,008,915

—

35,388

973,527

Liabilities

731,114

—

731,114

—

171,626

559,488

(1)	Gross amount without applying offset regulations.

(2)	Value to offset in the statement of financial position.

(3)	Finnancial Instruments that have master netting agreements but do not qualify to be netting directly in the statement of financial position

(4)	Amount to offset in the Finnancial Instruments that have master netting agreements but do not qualify to be netting directly in the statement of financial position.

(5)	Amounts related to financial guarantees

B.	Corporate Governance Structure and Committees

CorpBanca has established a sound organizational structure for monitoring, controlling and managing market risks, based on the following principles:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Risk is monitored and controlled by parties independent from those managing risk, thus correctly aligning incentives.

Management efforts should be flexible, within the framework permitted by policies, rules and current regulations.

Senior management establishes the guidelines for risk appetite, and

Is informed periodically on risk levels assumed, contingencies and instances when limits are exceeded.

In order to guarantee the flexibility of management efforts and communication of risk levels to upper management, the following network of committees has been established:

Financial Management Committee: Meets biweekly to analyze management of structural interest rate and indexation risk in the banking book.

Liquidity Management Committee: Meets biweekly to analyze management of funding liquidity risk.

Asset-Liability Committee (ALCO): Meets biweekly to analyze economic and financial conditions and inform senior management of market and liquidity risk levels assumed by presenting indexes of market and funding liquidity risk, limit consumption and results of stress tests.

Board of Directors The board of directors is informed each quarter of the market and funding liquidity risk levels assumed by presenting established risk indexes, limit consumption and results of stress tests.

The Divisions in charge of managing market and funding liquidity risk are:

As with the structure for financial risk at a corporate level, each local financial risk unit arranges its functions based on the specific characteristics of the business, operations, legal requirements or other relevant aspects.

In order to guarantee adherence to corporate policies and proper local execution, the corporate financial risk area and local units have the following roles and functions:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Corporate Financial Risk Area:

To design, propose and document risk policies and criteria, corporate limits and decision making and control processes.

To generate management schemes, systems and tools, overseeing and supporting implementation so that they function effectively.

To know, assimilate and adapt internal and external best practices.

To drive commercial activity to attain risk-weighted results.

To consolidate, analyze and control financial risk incurred by all perimeter units.

Local Financial Risk Units:

To measure, analyze and control the risks under their responsibility.

To adapt and embrace corporate policies and procedures through local approval.

To define and document local policies and lead local projects.

To apply policies and decision-making systems to each market.

To adapt the organization and management schemes to corporate frameworks and rules.

~~C. Monitoring and Controlling Financial Risk~~

C.	Monitoring and Controlling Financial Risk

1.	Market Risk

(a)

Management Tools

(1) Internal Monitoring

~~(1)~~

~~Internal Monitoring~~

(a)

Limits and Warning Levels

(i)

Trading Book

(a)

Value at Risk (VaR)

The Value at Risk (VaR) methodology is the main tool for controlling market risk in the trading book. Its appeal lies in its providing a statistical measurement of the maximum expected loss at a certain defined level of confidence, consolidating the risk exposures with the observed distribution of market factors.

For the above Corpbanca uses a Historical VaR to measure the market risk in their portfolios, this because a Historical VaR has comparative advantages over the other two calculation methodologies best known, for example, with respect to the Parametric or Statistical VaR which is based on assumptions of normal distribution of returns or, with respect to Monte Carlo simulation which is demanding in technological resources and which must make assumptions on the distribution of returns as well. Although the above is recognized that the Historical VaR has limitations associated primarily with data historical used for calculating vectors results which could not be reflecting most volatile periods or loss of correlations. Another limitation is to consider only the positions held between days and not consider intra-day positions that are also potential sources of losses due to changes in risk factors by movements of market variables during the day. That is why the bank has provided complementary risk measures quantification such as Stress VaR, Expected Shorfall, Conditional VaR, among others.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

Additionally, the bank carries out VaR Backtesting to measure the reliability of the model calculation methodology and assumptions underlying. Results about VaR Backtesting are shown in the next point of this note.

The Bank assigns global limits based on its activities in different markets. In addition, in order to complement these global limits, VaR sublimits are defined using diverse variables such as market volatility, volume, liquidity and return on capital are defined.

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended~~

~~December 31, 2012, 2013 and 2014~~

The following table presents the use of VaR during ~~2014~~2015 for the Bank and its Chilean and foreign subsidiaries.

VaR Statistics for Bank and Subsidiaries

   VaR Statistics for Bank and Subsidiaries
   [MCh$]
   VaR with 99% confidence level
   2014
   Minimum Average Maximum Last 2013
CORPBANCA CHILE

VaR Total
   1,126.27    1,927.30    2,763.36    2,147.21    1,465.56

Diversification Effect
   (349.73 ) (107.33 ) (45.13 ) (117.12 ) (50.96 )

Interest Rate VaR
   1,183.70    1,918.20    2,759.28    2,186.57    1,470.87

Equity Income VaR
   —      —      —      —      —

Currency VaR
   292.30    116.43    49.21    77.76    45.65
CONSOLIDATED COLOMBIA
VaR Total    138.25    286.54    709.77    695.29    256.20

Diversification Effect
   39.73    (30.32 ) (192.72 ) (21.00 ) (13.85 )

Interest Rate VaR
   97.98    283.17    708.36    694.96    329.88

Equity Income VaR
   —      —      —      —      —

Currency VaR
   0.54    33.69    194.13    21.33    11.00
CORPBANCA CORREDORES DE BOLSA S.A.
VaR Total    21.08    43.85    87.41    39.46    62.74

Diversification Effect
   35.82    (34.34 ) (79.62 ) (21.43 ) (195.23 )

Interest Rate VaR
   (20.99 ) 34.05    92.02    24.78    51.65

Equity Income VaR
   3.56    15.13    44.35    3.67    41.61

Currency VaR
   2.69    29.01    30.66    32.44    39.23
CORPBANCA NEW YORK
VaR Total    8.69    10.38    13.64    13.27    11.93

Diversification Effect
   —      —      —      —      —

Interest Rate VaR
   8.69    10.38    13.64    13.27    11.93

Equity Income VaR
   —      —      —      —      —

Currency VaR
   —      —      —      —      —

[MCh$]

VaR with 99% confidence level


		2015
		Minimum		Average		Maximum		Last
*CONSOLIDATED*	*Against P&L*		993.88		1,349.97		7,333.09		1,327.71

*CORPBANCA CHILE*	*Against P&L*		961.10		1,194.54		1,539.00		1,305.31

*CONSOLIDATED COLOMBIA*	*Against P&L*		157.44		295.43		517.12		403.03

*CORREDORES DE BOLSA S.A.*	*Against P&L*		37.80		86.96		119.96		81.24

*CORPBANCA NEW YORK*	*Against P&L*		0.03		0.28		2.21		0.34

FIGURE 1: VAR CONSUMPTION FOR THE BANK AND ITS SUBSIDIARIES

The following graphs show the daily evolution of the VaR during ~~2014~~2015 for the Bank and its subsidiary in Colombia. As mentioned previously, the Var consumption of CorpBanca Chile (blue line) is consistently higher than CorpBanca Colombia (red line)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

VaR Statistics for Bank and Subsidiaries

Figures in Millions of Chilean Pesos [MCh$]

VaR with 99% confidence level

FIGURE 2: VAR TRENDS IN CHILE AND COLOMBIA IN ~~2014~~2015

(i) VaR Backtesting

~~(i)~~

~~VaR Backtesting~~

VaR backtesting is carried out at a local and corporate level by the different financial risk units. The backtesting methodology is applied consistently to all of the Bank’s portfolios. These exercises consist of comparing the estimated VaR measurements at a determined level of confidence and time horizon against the real results of losses obtained during the same time horizon. The methodology used compares the results obtained without considering the intraday results or changes in positions within the portfolio. This method corroborates the individual models’ ability to value and measure the risks from the different positions.

As seen below, CorpBbanca Chile exhibited 2 exceptions over the considered time period, which corresponds to the Basel green zone.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FIGURE 3: BACKTESTING TRENDS FOR CHILE IN ~~2014~~2015

The graph presented above shows VaR movements with data from 300 days of history and the Bank’s results in Chile. Based on the graph, during the time frame indicated, there were 2 exceptions over the daily VaR. The frequency or Kupiec test places the model within the green zone, which indicates that the model is correct and aligned with the hypotheses made and accepts exceptions generated with a frequency of close to 1%, which are also independent from one another.

FIGURE 4: BACKTESTING TRENDS FOR COLOMBIA IN ~~2014~~2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

The figure above illustrates an exception to the daily VaR. The frequency test places the model within the green zone, which indicates that there is no evidence for rejecting the model.

(b)

Interest Rate and Currency Sensitivity

Interest rate and currency sensitivity is monitored on a daily basis and is limited by the VaR limits established for each portfolio.


			As of December 31, 2014								Consumption Statistics 2014								As of December 31, 2015								Consumption Statistics 2015
Exchange Rate	Limit [USD]		Position [USD]			VaR 99% [CLP]		VaR Inc 99% [CLP]			Minimum [USD]			Average [USD]			Maximum [USD]		Position [USD]			VaR 99% [CLP]		VaR Inc 99% [CLP]			Minimum [USD]			Average [USD]			Maximum [USD]
USD/CLP		55,000,000		(27,325,595	)		194,938,852		84,231,891			(27,325,595	)		8,880,335			48,922,929		(2,762,500	)		36,736,323		(8,851,222	)		(15,539,176	)		3,909,861			20,537,405
EUR/USD		20,000,000		26,781			211,924		(137,904	)		(17,954,871	)		(4,021,840	)		2,199,938		(4,182,583	)		44,714,350		20,453,425			(4,644,621	)		(628,976	)		3,847,712
JPY/USD		10,000,000		68,236			849,507		(593,157	)		(7,715,228	)		(1,488,303	)		7,451,707		97,957			922,052		(363,692	)		(130,447	)		110,873			8,019,122
GBP/USD		10,000,000		42,005			273,706		(138,463	)		(1,603,774	)		23,873			1,232,517		164,707			1,361,434		(383,271	)		(777,579	)		84,218			299,155
CAD/USD		10,000,000		43,896			291,351		(31,324	)		(468,908	)		10,856			114,667		157,472			1,402,264		728,448			(265,607	)		107,933			280,168
AUD/USD		5,000,000		27,035			294,669		(14,126	)		(14,835	)		52,888			151,555		67,073			865,428		(249,048	)		(33,986	)		36,267			83,800
MXN/USD		5,000,000		13,027			116,567		57,685			(4,567,117	)		(140,641	)		2,184,759		74,141			814,771		23,711			(24,711	)		23,290			75,062
PEN/USD		5,000,000		—			—		—			—			—			—		—			—		—			—			697			10,471
BRL/USD		5,000,000		2,265			37,824		(3,975	)		(2,025,591	)		(20,351	)		2,916,988		(22,553	)		501,262		(73,859	)		(914,258	)		(8,753	)		60,875
COP/USD		5,000,000		—			—		—			(2,436,382	)		(14,361	)		2,131		(10,205	)		175,291		(61,146	)		(954,361	)		(66,546	)		161,291
NOK/USD		500,000		65,957			736,809		(250,484	)		9,376			22,149			66,048		21,272			327,349		126,717			21,272			49,167			138,217
DKK/USD		500,000		19,295			150,387		(99,443	)		17,480			24,488			29,862		24,174			282,208		(119,243	)		(297,483	)		29,381			94,878
SEK/USD		500,000		(6,187	)		61,635		22,637			(287,591	)		2,289			25,115		357			4,120		(738	)		(23,655	)		6,433			18,231
CHF/USD		500,000		70,872			637,689		(365,519	)		(16,910	)		78,441			218,499		81,872			945,890		(425,275	)		(2,334	)		69,694			94,038
WON/USD		500,000		—			—		—			—			—			—		—			—		—			—			—			—
CNY/USD		500,000		13,224			23,706		39,862			1,604			6,104			20,813		7,396			24,592		(2,424	)		2,665			10,189			34,627

FIGURE 5: CURRENT LIMITS AND CONSUMPTION OF CURRENCY POSITIONS FOR ~~2014~~2015

The following tables show the trends in the most important currency positions managed in Chile, which are the U.S. dollar (USD) and the euro (EUR).

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

The graphs below show that the USD-CLP and EUR-USD exposures of CorpBbanca Chile ~~(blue line)~~ lie within the authorized ~~limits (range between the red lines).~~limits.

FIGURE 6: EVOLUTION OF USD POSITION FOR 2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~FIGURE 6: EVOLUTION OF USD POSITION FOR 2014~~

FIGURE 7: EVOLUTION OF EUR POSITION FOR ~~2014~~

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended~~

~~December 31, 2012, 2013 and 2014~~

2015

The limit for Colombia uses an overall position for all currencies, which cannot exceed US$ 40 million (notional). The table below shows the aggregate position for Colombia.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

Evolution position USD/CLP 2015 Corpbanca Colombia

FIGURE 8: EVOLUTION OF USD/CLP POSITION FOR ~~2014~~2015 BANCO CORPBANCA COLOMBIA

(c)

Sensitivity to Volatility

While the options portfolio is included in the VaR calculation described in the section above, the Bank also controls the risks associated with the currency options portfolio with additional limits, which promote the product as a customer necessity, more than as trading positions.

Gamma Risk Limit or Effect of Convexity of Options

Vega Risk Limit or Effect of Variability of Area of Implied Market Volatility

The following graphs show the use of limits as of year-end ~~2014~~2015 and trends in their use.

As of December 31, 2014

Limit

Value

As of December 31, 2015

Index

MCh$

Limit

Value

MCh$

Gamma Risk

—

Vega Risk

300

214

300

211

FIGURE 9: CONSUMPTION OF GAMMA AND VEGA RISK ~~2014~~2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FIGURE 10: TRENDS IN GAMMA RISK ~~2014~~2015

FIGURE 11: TRENDS IN VEGA RISK ~~2014~~

~~The following figures show the use of Gamma and Vega limits as of year-end 2014, for our subsidiary in Colombia.~~2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Colombia
Consumption Gamma and Vega Risk
   As of December 31, 2014
Index    Limit    Value
   MCh$    MCh$
Gamma Risk
   215       —
Vega Risk
   89       7

The following figures show the use of Gamma and Vega limits as of year-end 2015, for our subsidiary in Colombia.


	As of December 31, 2015
Index	Limit		Value
	MCh$		MCh$
Gamma Risk		79		26
Vega Risk		192		2

FIGURE 12: CONSUMPTION OF GAMMA AND VEGA RISK ~~2014~~2015 CORPBANCA COLOMBIA

FIGURE 13: TRENDS IN VEGA RISK ~~2014~~2015 (CORPBANCA COLOMBIA)

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FIGURE14: TRENDS IN GAMMA RISK (CORPBANCA COLOMBIA)

(ii) Banking Book

~~(ii)~~

~~Banking Book~~

The banking book consists primarily of:

Assets:

Cash

Commercial, mortgage and consumer loans from the commercial areas.

Fixed-income instruments classified as available for sale or held to maturity.

Liabilities:

Demand deposits

Time deposits

Senior and subordinated bonds

The banking book’s main risks and the tools used to monitor, control and manage these risks are described below.

(a) Financial Investment Positions

The banking book includes a portfolio of financial investments classified as available-for-sale instruments, used to manage structural interest rate risk in the balance sheet. Exposure to this type of investments is calculated using PV01 and VaR market value sensitivities, in order to continuously monitor the volatility of book basis equity.

Hedge accounting is used as an effective and relatively low-cost tool to manage this risk.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~(b) Sensitivity to Indexation~~

(b)	Sensitivity to Indexation

CorpBanca’s balance sheet presents a mismatch between inflation-indexed assets and liabilities. The Chilean market has more indexed assets than liabilities, which explains why the Bank has a mismatch of inflation-indexed assets. This is due to the existence of medium and long-term indexed assets that are financed with liabilities in Chilean pesos.

Hedge accounting is used as an effective and relatively low-cost tool to manage this risk.

The following table shows the size of the mismatch as of December 31, ~~2014~~2015 and the mismatch statistics during the year.


				Statistics 2014												Statistics 2015
	December 31, 2014 [MCh$]			Minimum [MCh$]			Average [MCh$]			Maximum [MCh]			December 31, 2015 [MCh$]			Minimum [MCh$]			Average [MCh$]			Maximum [MCh]
Total Mismatch		640,915			475,031			885,572			1,155,321			1,151,508			554,709			829,274			1,389,078

Balance Sheet Mismatch		1,580,966			1,519,498			1,645,540			1,702,193			1,791,742			1,558,585			1,629,130			2,234,983
Derivatives Mismatch		(947,339	)		(1,051,751	)		(767,488	)		(554,879	)		(679,752	)		(1,011,179	)		(820,878	)		(852,365	)
Investments Mismatch		7,288			7,284			7,519			8,007			39,518			7,303			21,022			6,460

FIGURE 15: INFLATION MISMATCH AS OF YEAR-END ~~2014~~2015 AND STATISTICS FOR THE YEAR

The following figure shows the evolution of this mismatch during ~~2014,~~2015, and the relative ease with which the Bank to manage this risk. During the course of the ~~2014~~2015 exhibition held at moderate levels.

~~FIGURE 16: EVOLUTION OF INFLATION MISMATCH DURING 2014~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FIGURE 16: EVOLUTION OF INFLATION MISMATCH DURING 2015

(c)	Sensitivity of Financial Margin and Economic Capital

The Annual Income Sensitivity (AIS) index measures the sensitivity of the interest margin to 100 bps variations in the repricing rate for assets and liabilities during the next 12 months. The established limits are much lower than the Bank’s annual net income. During ~~2014,~~2015, the sensitivity risk in the interest margin in Chile has remained low with a positive sensitivity to drops in interest rates.

The Market Value Sensitivity (MVS) index measures the sensitivity of the economic value (fair value) of the banking book in the event of a 100 bps increase in the valuation rates of assets and liabilities.

The tables below show the evolution of sensitivity indicators for interest margins and economic capital for Chile and Colombia.

~~FIGURE 17: EVOLUTION MVS AND AIS CHILE 2014~~

~~FIGURE 18: EVOLUTION MVS AND AIS COLOMBIA 2014~~

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

FIGURE 17: EVOLUTION MVS AND AIS CHILE 2014-2015

FIGURE 18: EVOLUTION MVS AND AIS COLOMBIA 2014-2015

(d)	Structural Exchange Rate Risk

Structural exchange rate risk arises from the Bank’s positions in currencies other than the Chilean peso related primarily to the consolidation of investments in subsidiaries or affiliates and the net income and hedges of these investments. The process of managing structural exchange rate risk is dynamic and attempts to limit the impact of currency depreciation, thus optimizing the financial cost of hedges.

The general policy for managing this risk is to finance them in the currency of the investment provided that the depth of the market so allows and the cost is justified by the expected depreciation. One-time hedges are also taken out when the Bank considers that any currency may weaken beyond market expectations with respect to the Chilean peso. As of December 31, ~~2014,~~2015, greater ongoing exposure was concentrated in Colombian pesos (approximately US$ 1.1 billion).

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

The Bank hedges part of these positions on a permanent basis using currency derivatives.

(b)

Stress Tests

Trading Book

In addition, market stress tests can be performed to test trading book positions under diverse extreme scenarios in order to estimate the losses they would generate.

The results of the market stress tests on the trading book are reported periodically to the ALCO and the Board of Directors.

Stress tests conducted during ~~2014~~2015 indicated that none of the critical scenarios considered would affect the Bank’s solvency.

The list below enumerates some of the linear and historical sensitivity scenarios analyzed.


Scenario		Description

1		Parallel shift of +50 bps

2		Parallel shift of +75 bps

3		Parallel shift of +100 bps

4		Steepening of 0 to 100 bps in 5 years

5		Twist of 25 bps pivoting in 5 years

6		Shock to inflation compensation of +200 bps

7		Shock to inflation compensation of -70 bps

8		Shock of +80 bps to Libor-Camara curve

9		Fall of Lehman Brothers (September 2008)

10		Recomposition of AFP portfolios (March 2009)

FIGURE 19: TRADING BOOK

ii)

Banking Book

Results of the market stress tests on the banking book are disclosed periodically to the ALCO and the Board of Directors.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


Scenario		Description

1		Parallel shift of 100 bps, +50 bps inflation compensation

2		Parallel shift of 200 bps, +100 bps inflation compensation

3		Parallel shift of 300 bps, +150 bps inflation compensation

4		Ramp of 0 to 100 bps in 1 year, +50 bps inflation compensation

5		Inverse ramp of 0 to 100 bps in 1 year, -200 bps inflation compensation

6		+3 standard deviations, +50 bps inflation compensation

7		+6 standard deviations, +150 bps inflation compensation

8		Shock to inflation compensation of +200 bps

9		Global recession,D D inflation compensation: -200bps

10		Global recovery,D inflation compensation: +200bps

FIGURE 20: BANKING BOOK

(c)

Methodologies

(i)

Trading Book

(a)

Value at Risk - VaR

For the calculation of VaR, the non-parametric method of historical simulation is used, which consists of using a historical series of prices and the position at risk from the trading book.

(b)

Rate Sensitivity

Sources of rate risk include forwards, swaps and options. Rate sensitivity is calculated and reported by portfolio, by relevant discount curve and by maturity.

The variation in the present value of the portfolio corresponds to its sensitivity at a variation of one basis point (bp).

~~DV01 :~~DV01: Sensitivity to 1 bp variation in rate i at band m.

~~PV :~~PV: Present value of portfolio’s cash flows.

•

PV’_im: Present value of portfolio’s cash flows with shock of 1 bp in rate i at time band m.

•

P_im: Net position in CLP at time band i, currency m.

•

r_im: Representative rate of currency m, time band i.

•

T_i: Representative maturity of time band i.

(c)

Currency Sensitivities

Sources of exchange rate risk come from both balance sheet and off-balance sheet positions such as derivatives.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Currency or position sensitivity corresponds to the market valuation of each cash flow in the currency of origin. That is, the cash flows in foreign currency expressed at present value.

PV : Present value of portfolio’s cash flows.

•

PV’_m : Present value of portfolio’s cash flows with shock of 1 unit in exchange rate of currency m with respect to USD.

(ii)

Banking Book

(a)

Sensitivity to Indexation

As with currency sensitivity, indexation sensitivity is the market valuation of each indexed cash flow. That is, the cash flows in indexation units expressed at present value.

PV : Present value of portfolio’s cash flows.

•

PV’_m : Present value of portfolio’s cash flows with shock of 1 unit in indexation unit.

(b)

Sensitivity of Financial Margin

This measures the impact caused by a movement of 100 bp, over a twelve-month horizon, in the Bank’s financial margin (interest earned less interest paid).

•

AIS~~: Annual~~ :Annual Income Sensitivity.

•

P_im : Net position in CLP in respective time band.

Dr : Variation of 100 bp.

•

T_i : Representative maturity of time band i.

(c)

Sensitivity of Economic Capital

This measures the sensitivity of the market value of the cash flows associated with assets and liabilities in the event of a parallel change of 100 bp in the relevant discount curve.

The information required to calculate the index is obtained from the cash flows of the Bank’s entire portfolio using data from the banking book.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

MVS : Market Value Sensitivity.

•

PV_im: Present value of the cash flows of time band i, currency m.

•

PV’_im : Present value of the cash flows of time band i, currency m, with a shock of 100 bp in discount rates.

•

P_im : Net position in CLP at time band i, currency m.

•

r_im : Representative rate of currency m, time band i.

•

T_i : Representative maturity of time band i.

(2)Regulatory Monotoring

~~(2)~~

~~Regulatory Monotoring~~

Regulatory monitoring of market risk exposure is measured in accordance with chapter ~~III.B.2~~III.B.2.2 of the Compendium of Financial Standards from the Chilean Central Bank and chapter ~~12-9~~12-21 of the Updated Compilation of Standards from the Superintendency of Banks and Financial Institutions for both the trading book and the banking book. In the trading book, the impact is measured in the event of a change in the market price of its financial positions as a result of variations in interest rates, exchange rates and volatility. In the banking book, the impact is measured on the entity’s financial margin and present value.

The limits established for the trading book are for exposure to interest rate risk and exchange rate risk. The difference between the regulatory capital recorded by the financial institution and the sum of the following two items cannot be negative: (i) the product of the credit risk-weighted assets defined in article 67 of the General Banking Law and the minimum percentage established for regulatory capital in article 66 of that law, and (ii) the sum of the trading book’s exposure to interest rate risk and the exchange rate risks for the entire balance sheet measured in accordance with the Basel standard methodology with some important differences where exchange rate exposure stands out. As indicated in the paragraph above, the Bank must always comply with the following ratio:

RC-((k*CRWA)+MRE)>0


Where:
RC		: Regulatory Capital
CRWA		: Credit Risk Weighted Assets
MRE		: Exposure to interest rate risk in trading book and currency Risk in entire balance Sheet
k		: Minimum percentage established for regulatory capital in article 66 of General Banking Law


Group	Description Sensitivity	Factor
i	Each of the foreign currencies of countries with long-term external debt
	in foreign currency with a rating of at least AAAr, or equivalent, from
i	any of the risk rating agencies indicated in Chapter III.B.5 of this	~~O’í=8%~~
	Compendium. It also considers the EURO and the position in gold.	o’í = 8%

j	Each of the foreign currencies of countries not included in basket i.	~~O’j-=~~o’j- = 35%

Market risk exposure in accordance with regulatory methodology is detailed below:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


Market Risk Limit for Trading Book	2012			2013			2014			2013			2014			2015
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Market Risk-Weighted Assets		1,850,377			3,379,014			4,241,613			3,379,014			4,241,613			2,325,513
Rate Trading		836,358			796,729			785,550			796,729			785,550			735,625
Currency Trading		96,713			36,959			863			36,959			863			18,488
Options Trading		9,763			11,960			10,075			11,960			10,075			8,550
Currency Structural moneda		907,543			2,533,366			3,445,125			2,533,366			3,445,125			1,562,850
Credit Risk-Weighted Assets		11,494,413			15,058,532			16,715,382			15,058,532			16,715,382			17,465,950
Total Risk-Weighted Assets		13,344,790			18,437,546			20,956,995			18,437,546			20,956,995			19,791,463

Regulatory Capital		1,270,202			1,991,289			2,071,647			1,991,289			2,071,647			1,666,708

Basel Index		11.05	%		13.22	%		12.39	%		13.22	%		12.39	%		9.54	%
Badel Index (includes MRE *)		9.52	%		10.80	%		9.89	%

Badel Index (includes MRE*)											10.80	%		9.89	%		8.42	%

Margin		202,619			516,285			729,389			516,285			729,389			264,724
% Consumption		84.05	%		74.07	%		64.79	%		74.07	%		64.79	%		84.12	%

FIGURE 21: MARKET RISK LIMIT FOR TRADING BOOK

The market risk presented in the table above (measured in units of risk-weighted assets) shows that capital consumption related to the Bank’s exposures to market risks is explained in more than 83% of the cases by the effect of our investment in Banco CorpBanca Colombia. As of December ~~2014,~~2015, this investment amounted to approximately US$ ~~1.1 billion.~~815 million. This exposure to exchange rate ~~risk—Chilean~~risk -Chilean peso vs. Colombian ~~peso—~~peso- is considered structural in the sense that it arises from a long—term investment.

It is also worth mentioning that in accordance with Chilean regulations, a sensitivity factor of 35% is applied to net exposures in foreign currencies of countries other than those classified as AAA or their equivalent. The standard sensitivity factor in the Basel standards is only 8%. As a result, the capital consumption that the Bank must report to comply with local regulations is more than 4 times greater than if international recommendations were applied.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


CorpBanca Colombia
Market Risk	~~2014~~2015
	MCh$
Risk-Weighted Assets (RWA)		~~591,815~~576,312
Trading		~~591,815~~576,312
Structural (currency)		—
Credit Risk		~~5,438,905~~5,470,672
Total Risk-Weighted Assets		~~6,030,720~~6,046,984
Regulatory Capital		~~752,063~~780,375
Basel Index		~~13.83~~14.00	%
Badel Index (includes ~~MRE )~~MRE)		~~12.47~~12.70	%
Margin		~~286,238~~291,020
% Consumption		~~61.94~~62.70	%

FIGURE 22: MARKET RISK IN COLOMBIA

The exposure of regulatory limits in the banking book for Chile are detailed as follows:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015


*Market Risk Limit for Banking Book*
										2013			2014			2015
	2012			2013			2014			MCh$			MCh$			MCh$
Short-Term Limit	MCh$			MCh$			MCh$
Exposure		51,253			54,949			64,990			54,949			64,990			78,425
Rate Risk		21,752			22,502			39,274			22,502			39,274			43,914
Indexation Risk		25,900			28,666			21,683			28,666			21,683			29,662
Reduced Revenue (fees sensitive to insterest rates)		3,601			3,781			4,033			3,781			4,033			4,849
Limit		78,624			97,651			130,591			97,651			130,591			127,006
Consumption %		65.2	%		56.3	%		49.8	%
Consumption%											56.3	%		49.8	%		61.7	%

Financial Margin plus Fees (12 months)		224,640			279,003			373,118			279,003			373,118			362,875
Percentage over financial margin		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Short-term Limit		78,624			97,651			130,591			97,651			130,591			127,006
Consumption with respect to financial margin		22.8	%		19.7	%		17.4	%		19.7	%		17.4	%		21.6	%

Long-Term Limit
Exposure		119,624			157,786			266,394			157,786			266,394			269,568
Rate Risk		119,624			157,786			266,394			157,786			266,394			269,568
Limit		337,314			537,648			414,329			537,648			414,329			333,342
Consumption %		35.5	%		29.3	%		64.3	%
Consumption%											29.3	%		64.3	%		80.9	%

Regulatory Capital (RC)		1,249,311			1,991,289			2,071,647			1,991,289			2,071,647			1,666,708
Percentage over margin		27	%		27	%		20	%		27	%		20	%		20	%
Long-term Limit		337,314			537,648			414,329			537,648			414,329			333,342
Consumption with respect to regulatory capital		9.6	%		7.9	%		12.9	%		7.9	%		12.9	%		16.2	%

FIGURE 23: MARKET RISK LIMIT FOR BANKING BOOK

Finally, regulatory provisions in Colombia do not establish methodologies for determining market risk exposure for the banking book. However, they are monitored, controlled and reported on a daily basis using the internal methodologies described above.

~~2. Funding Liquidity Risk~~

Funding Liquidity Risk

~~a) Management Tools~~

Management Tools

Short-term maturity mismatch

Coverage capacity using liquid assets

Concentration of funding sources

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

(1) Internal Monitoring

(a)

Limits and Warning Levels

(i)

Thirty-day Liquidity Coverage Ratio

In order to safeguard the Bank’s payment capacity in the event of illiquid conditions, a minimum has been established for the instrument portfolio that enables cash flows to be quickly generated either through liquidation or because they can be used as collateral for new funding sources.

The limit on the coverage ratio of liquidity is 50% of the mismatches of 30 days (consolidated currency).

The composition of liquid assets as of year-end December ~~2013~~2015 after applying the respective price volatility haircuts and market liquidity adjustments is presented in the table below.

Liquid Assets CorpBanca Chile


Investment Portfolio Chile As of December 31, 2014	Liquid Assets in domestic currency (30 days)			Liquid Assets in foreign currency (30 days)			Total Liquid Assets
Investment Portfolio Chile As of December 31, 2015										Liquid Assets in domestic currency (30 days)			Liquid Assets in foreign currency (30 days)			Total Liquid Assets
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Cash and cash equivalents		756,259			244,515			1,000,774			489,478			160,519			649,997
Central Bank and Government Securities		505,497			65,853			571,350
Central Bank and goverment securities											710,057			—			710,057
Bank time deposits		51,846			—			51,846			61,330			—			61,330
Corporate bonds		27,621			20,996			48,617			23,664			24,031			47,695
Bank bonds		198			17,967			18,165			23,553			11,543			35,096
Repo agreements		(677	)		—			(677	)		(29,817	)		—			(29,817	)
Average clearance reserves required		(83,500	)		(18,070	)		(101,570	)		(217,782	)		(20,230	)		(238,012	)
Liquid Assets		1,257,244			331,261			1,588,505			1,060,483			175,863			1,236,346

FIGURE 24: LIQUID ASSETS CORPBANCA CHILE

Liquid Assets CorpBanca Colombia


Investment Portfolio Colombia As of December 31, 2014	Liquid Assets in domestic currency (30 days)		Liquid Assets in foreign currency (30 days)		Total Liquid Assets
Investment Portfolio Colombia As of December 31, 2015							Liquid Assets in domestic currency (30 days)			Liquid Assets in foreign currency (30 days)		Total Liquid Assets
	MCh$		MCh$		MCh$		MCh$			MCh$		MCh$
Cash and cash equivalents		63,401		12,294		75,695		362,716			9,102		371,818
Central Bank and Government Securities		974,834		—		974,834
Central Bank and goverment securities								837,423			—		837,423
Bank time deposits		—		—		—		—			—		—
Corporate bonds		63,496		—		63,496		190,533			—		190,533
Bank bonds		—		—		—		—			—		—
Repo agreements		—		—		—		—			—		—
Average clearance reserves required		340,192		—		340,192		(365,960	)		—		(365,960	)
Liquid Assets		1,441,923		12,294		1,454,217		1,024,712			9,102		1,033,814

FIGURE 25: LIQUID ASSETS BANCO CORPBANCA COLOMBIA

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

(ii)

Daily Wholesale Maturities

Special treatment is given to this customer segment for two reasons:

They individually could represent an important percentage of CorpBanca’s business.

The maturity profile for wholesale deposits is monitored on a daily basis for every country. As a result, excesses are detected and reported based on the structure of the maturity profile. Forecasted excesses must be justified the day after they are reported and must then be managed.

(iii)

Warning Levels for Liquidity Requirements

In addition to monitoring and reporting all internal limits on a daily basis, senior management is informed each month through the ALCO and the Board of Directors is informed each quarter.

Special importance is placed on the Bank’s liquidity position by presenting an analysis of measurements of concentration, performance, premiums paid and/or other relevant variables.

(a)

Monitoring Funding Sources

These strategies enabled the Bank to continue to improve its funding structure, providing more stable funding.

(b)

Survival Horizon under Individual Stress

(b)

Stress Tests

In particular, three types of scenarios are modeled:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~In particular, three types of scenarios are modeled:~~

Systemic Crisis:Local weakening of financial and credit conditions that causes the market to seek refuge in the U.S. dollar, greater restrictions on access to credit from abroad, massive outflows of capital, increases in the use of lines of credit and downward adjustments in expectations for the monetary policy rate.

(2)Regulatory Monitoring

(a)

Liquidity requirement

In accordance with Chapter III B.2 from the Chilean Central Bank and Chapter 12-9 of the Updated Compilation of Standards from the Superintendency of Banks and Financial Institutions, the Bank must measure and control its liquidity position based on the difference between cash flows payable from liability and expense accounts and cash flows receivable from asset and income accounts for a given period or time band, which is called maturity mismatch.

The maturity mismatch in all currencies for periods less than or equal to 30 days must be less than or equal to the Bank’s basic capital.

The maturity mismatch in foreign currencies for periods less than or equal to 30 days must be less than or equal to the Bank’s basic capital.

The maturity mismatch in all currencies for periods less than or equal to 90 days must be less than or equal to twice the Bank’s basic capital.

In full compliance with the Chilean Central Bank and the Superintendency of Banks and Financial Institutions, CorpBanca’s ~~board~~Board of directors approved a policy to measure and control its liquidity position based on maturity mismatches on an adjusted basis with a 10% cushion with respect to the regulatory limit.

The table below shows the use of internal mismatch limits as of December 31, 2015, and some consumption statistics for the year.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~The table below shows the use of internal mismatch limits as of December 31, 2014, and some consumption statistics for the year.~~


	As of December 31, 2015						Statistics 2015
Table of Contents	Límit [MCh$]		Mismatch [MCh$]		Excess Reserve [MCh$]		Mínimum [MCh$]		Average [MCh$]		Máximum [MCh$]
All currencies 30 days		1,065,156		315,240		1,380,396		1,120,630		1,483,457		1,901,288
All currencies 90 days		2,130,313		62,587		2,192,900		1,697,334		2,165,066		2,723,342
Foreign currency 30 days		1,065,156		203,051		1,268,207		1,106,777		1,424,324		1,893,928


	As of December 31, 2014							Statistics 2014							As of December 31, 2014							As of December 31, 2013
Table of Contents	Límit [MCh$]		Mismatch [MCh$]			Excess Reserve [MCh$]		Mínimum [MCh$]		Average [MCh$]			Máximum [MCh$]		Límit [MCh$]		Mismatch [MCh$]			Excess Reserve [MCh$]		Límit [MCh$]		Mismatch [MCh$]			Excess Reserve [MCh$]
All currencies 30 days		1,362,821		567,416			1,930,237		887,310		1,483,735			2,453,379		1,362,821		567,416			1,930,237		1,404,443		(146,681	)		1,257,762
All currencies 90 days		2,725,642		(381,918	)		2,343,724		1,036,892		1,927,660			3,000,636		2,725,642		(381,918	)		2,343,724		2,808,886		(981,388	)		1,827,498
Foreign currency 30 days		1,362,821		281,575			1,644,396		1,075,827		1,493,219			1,839,143		1,362,821		281,575			1,644,396		1,404,443		19,210			1,423,653

	As of December 31, 2013							As of December 31, 2012
Table of Contents	Límit [MCh$]		Mismatch [MCh$]			Excess Reserve [MCh$]		Límit [MCh$]		Mismatch [MCh$]			Excess Reserve [MCh$]
All currencies 30 days		1,404,443		(146,681	)		1,257,762		927,030		219,292			1,146,322
All currencies 90 days		2,808,886		(981,388	)		1,827,498		1,854,060		(1,079,885	)		774,175
Foreign currency 30 days		1,404,443		19,210			1,423,653		927,030		(462,366	)		1,920,497

FIGURE 26: INTERNAL LIMITS AND CURRENCY MISMATCHES

Figures 27, 28 and 29 show the evolution of consumption for each limit in ~~2014.~~2015.

LOGO

FIGURE 27: EVOLUTION OF CONSOLIDATED MISMATCH IN ALL CURRENCIES AT 30 DAYS DURING ~~2014~~2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

LOGO

FIGURE 28: EVOLUTION OF CONSOLIDATED MISMATCH IN ALL CURRENCIES AT 90 DAYS DURING ~~2014~~2015

LOGO

FIGURE 29: EVOLUTION OF CONSOLIDATED MISMATCH IN FOREIGN CURRENCIES AT 30 DAYS DURING ~~2014~~2015

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

In the Colombian market the regulatory measurement known as the standard LRI model measures 7 and ~~30 days~~30-day liquidity gaps. It allows entities to quantify the level of minimum liquid assets, in domestic and foreign currency, that they should maintain each day in order to, at a minimum, meet their payment obligations fully and on time. Entities must be capable of measuring and forecasting the cash flows of their assets, liabilities, off-balance sheet positions and derivative instruments for different time horizons in both normal scenarios and crisis scenarios where cash flows vary significantly from expectations as a result of unforeseen changes in markets, the entity or both.

The following tables show the evolution of the 7 and 30 day liquidity gaps in Colombia in ~~2014.~~2015.

LOGO

FIGURE 30: CONSOLIDATED 7-DAY LIQUIDITY GAP ~~2014~~2015 COLOMBIA

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

LOGO

FIGURE 31: CONSOLIDATED 30 DAY LIQUIDITY GAP ~~2014~~2015 COLOMBIA

Shareholders’ equity requirement

Consistent with Chile’s General Banking Law, we must maintain a ratio of at least 8%, net of required provisions between Effective Shareholders’ Equity and Consolidated Assets Weighted by risk, and a ratio of at least 3%, net of required provisions, between our Equity Base and Total Consolidated Assets. For such purposes, effective Equity is determined according to our Equity and Reserves or Equity Base with the following adjustments:

a.	subordinated bonds with a 50% limit of the Equity Base are added, and

b.	the balance of Goodwill assets or surcharges paid, and investments in companies not involved in the consolidation are subtracted.

Assets are weighted based on their risk categories, to which we assign a risk percentage based on the amount of capital needed to back each one of those assets. Five risk categories are applied (0%, 10%, 20%, 60% and 100%). For example, cash, deposits in other banks, and financial securities issued by the Central Bank of Chile have a 0% risk factor, which means that, consistent with current regulations, no capital is needed to back these assets. Fixed assets carry a 100% risk, which means that a mandatory capital equivalent of 8% of the value of these assets must be available.

In determining risk assets with conversion factors on notional values, we take into account all derivative securities negotiated off-exchange, thereby obtaining a credit risk exposure amount (or “credit equivalent”). The off-balance contingent loans are also considered to be “credit equivalent” in terms of weighting.

For the December 31, 2014 and 2015, the ratio of assets and risk weighted assets is as follows:

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

~~December 31, 2012, 2013 and 2014~~

~~For the~~ December 31, 2013, 2014 and ~~2014, the ratio of assets and risk weighted assets is as follows:~~2015


	Consolidated Assets					Risk-Weighted Assets				Consolidated Assets				Risk-Weighted Assets
	2013			2014		2013		2014		2014		2015		2014		2015
	MCh$			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
In-Balance Assets (net of provisions):
Cash and deposits in banks		911,088			1,169,178		—		—		1,169,178		1,004,757		—		—
Cash in the process of collection		112,755			212,842		38,367		69,124		212,842		176,501		69,124		46,344
Trading portfolio financial assets		431,683			685,898		114,243		182,209		685,898		323,899		182,209		116,964
Investments under agreements to resell		201,665			78,079		201,665		78,079		78,079		24,674		78,079		12,587
Derivative financial instruments		852,162	¹		1,553,424		593,931		1,066,545
Derivative financial instruments¹											1,553,424		1,657,260		1,066,545		1,180,709
Loans and receivables from banks		217,944			814,209		76,716		194,162		814,209		451,829		194,162		143,801
Loans and receivables from customers, net		12,777,784			13,891,904		11,950,287		12,920,115		13,891,904		14,454,357		12,920,115		13,463,303
Financial investments available-for-sale		889,087			1,156,896		265,354		211,567		1,156,896		1,924,788		211,567		521,569
Held to maturity investments		237,522			190,677		153,147		190,677		190,677		170,191		190,677		170,191
Investments in other companies		15,465			15,842		15,465		15,842		15,842		14,648		15,842		14,648
Intangible assets		424,930	²		371,597		424,930		371,597
Intangible assets²											371,597		319,644		371,597		319,644
Property, plant and equipment, net		98,242			92,642		98,242		92,642		92,642		91,630		92,642		91,630
Current taxes		—			1,608		—		161		1,608		4,447		161		445
Deferred income taxes		92,932			113,501		9,293		11,350		113,501		118,127		11,350		11,813
Other assets		290,678			411,974		290,678		411,974		411,974		462,604		411,974		344,311
Off-Balance sheet assets:
Contingent loans		1,377,022			1,498,897		826,213		899,338		1,498,897		1,713,318		899,338		1,027,991

Total risk-weighted assets		18,930,959			22,259,168		15,058,531		16,715,382		22,259,168		22,912,674		16,715,382		17,465,950

Figures are presented as required by local regulations.

Risk-weighted assets are calculated according to Chapter 12-1 of the Recopilación Actualizada de ~~Normas—~~Normas - RAN (updated compilation of rules) issued by the SBIF.

1.	Items presented at their credit equivalent risk value, as established in SBIF Chapter 12-1 “Equity for Legal and Regulatory Purposes.”

2.	For calculation purposes, the amount of all assets that correspond to goodwill is subtracted as established in the aforementioned chapter.


												Amount					Ratio
	Amount					Ratio						2014			2015		2014			2015
	2013			2014		2013			2014			MCh$			MCh$
	MCh$			MCh$
Basic Capital		1,411,341	³		1,443,427		7.30	%⁵		6.37	%		1,443,427	³		1,183,723		6.37	%⁵		5.09	%
Effective Equity		1,991,289	⁴		2,071,647		13.22	%⁶		12.39	%		2,071,647	⁴		1,666,708		12.39	%⁶		9.54	%

3.	Basic capital is defined as the net amount that should be shown in the consolidated financial statements as “equity attributable to equity holders of the Bank” as indicated in the Compendium of Accounting Standards.

Regulatory capital is equal to basic capital plus subordinated bonds, additional provisions, and non-controlling interest as indicated in the Compendium of Accounting Standards; however, if that amount is greater than 20% of basic capital, only the amount equivalent to that percentage will be added; goodwill is subtracted and if the sum of the assets corresponding to minority investments in subsidiaries other than banking support companies is greater than 5% of basic capital, the amount that the sum exceeds that percentage will also be subtracted.

5.	The consolidated basic capital ratio is equal to basic capital divided by total assets.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

6.	The consolidated solvency ratio is equal to the ratio of regulatory capital to weighted assets.

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended~~

~~December 31, 2012, 2013 and 2014~~

b) As of December 31, ~~2014,~~2015, the Bank includes the following information within its management objectives, policies and processes:

The Bank, in consolidated terms, has total equity of MCh$1,183,723 (MCh$1,443,427 ~~(MCh$ 1,411,341~~ as of December 31, ~~2013)~~2014).

In terms of regulatory ratios, the Bank closed as of December 31, ~~2014,~~2015, with a ratio of basic capital to total assets of ~~6.37% (7.30%~~5.09% (6.37% as of December 31, ~~2013)~~2014), while the Basel Index (regulatory capital to total risk-weighted assets was ~~12.39% (13.22%~~9.54% (12.39% as of December 31, ~~2013)~~2014).

Operational Risk

a)	Roles and Responsibilities

Board of Directors

The Board of Directors must ensure that the mechanisms used to manage operational risk, as well as the definition of roles and responsibilities (established in this policy) are in accordance with guidelines outlined by the Bank’s shareholders.

Operational Risk and Information Security Committee

This committee is responsible for maintaining visibility regarding and commitment to operational risk management at the highest level of authority.

Operational Risk Management Area

The mission of this area is to define, promote, implement and monitor the framework for operational risk management, which should be in line with the Bank’s focus, objectives and strategic goals.

Division Managers

Division managers are responsible for managing operational risks within their respective divisions. Their responsibilities include:

Implementing operational risk policy in their respective business units.

The most important operational risk management responsibilities of each division include:

Identifying risks.

Valuing risks (both qualitatively and quantitatively).

Improving risks.

Providing direct support for operational risk monitoring within the business unit.

b)	Operational Risk Management Process

The operational risk management model for CorpBanca and subsidiaries includes the following activities or functions:

i)	Creation of Risk Culture

Training and Communication

Ongoing training and communication regarding the threats facing the business, together with business-focused training, are crucial to achieving objectives. Evaluations of operational risk are based on identifying threats to the business process, the impact of those threats and the subsequent evaluation of controls to mitigate operational risk.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

ii)	Evaluation

Evaluations of operational risk are based on identifying threats to the business process, the impact of those threats and the subsequent evaluation of controls to mitigate risk.

iii)	Improvements

Each division manager must ensure that operational risks are reviewed regularly and that the proper measures are taken.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~36—~~36 - MATURITY OF ASSETS AND LIABILITIES

a)	Maturity of financial assets

Below are the main financial assets grouped according to their remaining terms, including interest accrued as of December 31, ~~2013~~2014 and ~~2014.~~2015.

As of December 31, 2013
Notes Up to 1
month From 1
month to 3
months From 3
months to 1
year From 1
year to 3
years From 3
years to 6
years Over 6
years TOTAL
MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
Trading portfolio financial assets
6    15,789    8,708    240,361    146,337    18,501    1,987    431,683
Investments under agreements to resell
7    66,725    —      1,219    133,721    —      —      201,665
Derivative financial instruments
8    31,481    19,710    43,830    82,289    106,631    92,339    376,280
Loans and receivables from banks (*)
9    162,274    —      5,291    50,516    —      —      218,081
Loans and receivables from customers(**)
10    923,808    1,327,942    1,945,004    2,369,623    2,450,978    3,715,598    12,732,953
Commercial loans
616,662    1,280,289    1,730,618    1,861,086    1,779,845    1,900,340    9,168,840
Mortgage loans
12,438    11,740    54,519    155,701    253,159    1,494,204    1,981,761
Consumer Loans
294,708    35,913    159,867    352,836    417,974    321,054    1,582,352
Financial investments available-for-sale
11    123,073    —      135,238    26,765    286,120    317,891    889,087
Financial investments held-to-maturity
11    40,045    1,018    124,050    12,189    10,701    49,519    237,522

~~(*)~~

~~Loans and advances to banks are presented gross. The amount of provisions corresponds to MCh$ 137.~~

~~(**)~~

Loans are presented gross. Provisions by loan type are detailed as follows: Commercial MCh$91,354, Mortgage MCh$6,968 and Consumer MCh$27,717. Excludes amounts that have already matured, which total MCh$164,728 as of December 31, 2013.


																		As of December 31, 2014
			As of December 31, 2014														Notes	Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL
	Notes		Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Trading portfolio financial assets		6		20,145		81,838		361,936		114,110		35,393		72,476		685,898	6		20,145		81,838		361,936		114,110		35,393		72,476		685,898
Investments under agreements to resell		7		70,353		5,087		2,639		—		—		—		78,079	7		70,353		5,087		2,639		—		—		—		78,079
Derivative financial instruments		8		46,213		51,120		100,152		156,525		182,722		230,067		766,799	8		46,213		51,120		100,152		156,525		182,722		230,067		766,799
Loans and receivables from banks (*)		9		720,066		35,834		16,309		26,241		16,030		—		814,480	9		720,066		35,834		16,309		26,241		16,030		—		814,480
Loans and receivables from customers(**)		10		1,780,145		1,851,508		2,005,376		2,077,420		2,337,087		3,767,680		13,819,216	10		1,780,145		1,851,508		2,005,376		2,077,420		2,337,087		3,767,680		13,819,216
Commercial loans				1,380,435		1,788,974		1,741,470		1,542,727		1,520,212		1,964,977		9,938,795			1,380,435		1,788,974		1,741,470		1,542,727		1,520,212		1,964,977		9,938,795
Mortgage loans				20,453		21,917		126,284		182,590		353,418		1,517,515		2,222,177			20,453		21,917		126,284		182,590		353,418		1,517,515		2,222,177
Consumer Loans				379,257		40,617		137,622		352,103		463,457		285,188		1,658,244			379,257		40,617		137,622		352,103		463,457		285,188		1,658,244
Financial investments available-for-sale		11		7,914		9,000		87,162		285,053		496,090		271,677		1,156,896	11		7,914		9,000		87,162		285,053		496,090		271,677		1,156,896
Financial investments held-to-maturity		11		49,582		8,034		118,510		5,233		948		8,370		190,677	11		49,582		8,034		118,510		5,233		948		8,370		190,677

(*)	Loans and advances to banks are presented gross. The amount of provisions corresponds to MCh$ 271.

(**)	Loans are presented gross. Provisions by loan type are detailed as follows: Commercial MCh$96,009, Mortgage MCh$7,762 and Consumer MCh$33,834. Excludes amounts that have already matured, which total MCh$210,659 as of December 31, 2014.


		As of December 31, 2015
	Notes	Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL
		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Trading portfolio financial assets	6		28,103		6,937		53,945		26,535		25,588		182,791		323,899
Investments under agreements to resell	7		17,237		1,994		5,443		—		—		—		24,674
Derivative financial instruments	8		57,811		64,204		139,467		199,063		259,818		288,552		1,008,915
Loans and receivables from banks (*)	9		320,330		72,495		33,757		7,114		18,373		—		452,069
Loans and receivables from customers(**)	10		1,862,215		1,932,354		2,123,190		2,231,500		2,706,744		3,547,870		14,403,873
Commercial loans			1,525,726		1,846,561		1,815,169		1,594,681		1,655,850		2,091,749		10,529,736
Mortgage loans			24,554		33,941		181,270		310,000		578,945		1,092,809		2,221,519
Consumer Loans			311,935		51,852		126,751		326,819		471,949		363,312		1,652,618
Financial investments available-for-sale	11		67,237		20,987		312,890		837,128		455,079		231,467		1,924,788
Financial investments held-to-maturity	11		64,135		3,566		84,402		12,340		—		5,748		170,191

(*)	Loans and advances to banks are presented gross. The amount of provisions corresponds to MCh$ 240.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

(**)	Loans are presented gross. Provisions by loan type are detailed as follows: Commercial MCh$138,721, Mortgage MCh$8,832 and Consumer MCh$26,386. Excludes amounts that have already matured, which total MCh$224,423 as of December 31, 2015.

~~Maturity of financial liabilities~~

b)	Maturity of financial liabilities

Below are the main financial liabilities grouped according to their remaining terms, including interest accrued to December 31, ~~2013~~2014 and ~~2014:~~2015:

As of December 31, 2013
Notes Up to 1
month From 1
month to 3
months From 3
months to 1
year From 1
year to 3
years From 3
years to 6
years Over 6
years TOTAL
MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
Obligations under repurchase agreements
7    298,840    43,605    —      —      —      —      342,445
Time deposits and saving accounts (*)
17    2,753,220    2,213,463    1,766,388    489,612    60,263    22,127    7,305,073
Derivative financial instruments
8    28,732    20,697    50,599    82,194    61,199    38,162    281,583
Borrowings from financial institutions
18    182,786    204,972    761,389    42,873    31,855    49,965    1,273,840
Debt issued
19    878    5,362    68,176    519,970    754,986    1,065,185    2,414,557

~~(*)~~

~~Exclude term savings accounts totaling MCh$32,630 during 2013.~~


																			As of December 31, 2014
			As of December 31, 2014														Notes		Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL
	Notes		Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL				MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Obligations under repurchase agreements		7		661,566		97		—		—		—		—		661,663		7		661,566		97		—		—		—		—		661,663
Time deposits and saving accounts (*)		17		2,760,216		2,289,106		2,361,770		599,081		12,789		22,448		8,045,410		17		2,760,216		2,289,106		2,361,770		599,081		12,789		22,448		8,045,410
Derivative financial instruments		8		43,992		51,390		115,826		163,062		112,699		120,714		607,683		8		43,992		51,390		115,826		163,062		112,699		120,714		607,683
Borrowings from financial institutions		18		155,456		101,935		676,685		411,324		28,865		57,658		1,431,923		18		155,456		101,935		676,685		411,324		28,865		57,658		1,431,923
Debt issued		19		123,230		3,541		110,125		628,830		1,069,830		1,143,494		3,079,050		19		123,230		3,541		110,125		628,830		1,069,830		1,143,494		3,079,050

(*)	Exclude term savings accounts totaling MCh$31,556 during 2014.


			As of December 31, 2015
	Notes		Up to 1 month		From 1 month to 3 months		From 3 months to 1 year		From 1 year to 3 years		From 3 years to 6 years		Over 6 years		TOTAL
			MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Obligations under repurchase agreements		7		259,907		724		—		—		—		—		260,631
Time deposits and saving accounts (*)		17		3,484,648		1,721,763		2,229,474		945,200		21,513		61,432		8,464,030
Derivative financial instruments		8		60,807		71,978		145,599		186,976		116,398		149,356		731,114
Borrowings from financial institutions		18		181,528		248,487		701,822		324,423		13,272		59,053		1,528,585
Debt issued		19		3,901		9,835		364,533		968,037		918,317		962,931		3,227,554

(*)	Exclude term savings accounts totaling MCh$31,573 during 2015.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and 2015

c)	Contractual Obligations


	As of December 31, 2014
Contractual Obligations	Less than 1 year			1-3 years			3-5 years			More than 5 years			Total
	MCh$			MCh$			MCh$			MCh$			MCh$
Time deposits and saving accounts		7,748,193			572,819			13,376			46,672			8,381,060
Deposits and other demand liabilities		2,336,350			1,835,272			—			—			4,171,622
Bank obligations		1,350,294			55,543			30,263			57,679			1,493,779
Investments under repurchase agreements		661,663			—			—			—			661,663
Issued debt Instruments		343,607			799,686			1,204,339			1,611,282			3,958,914
Other financial liabilities		9,490			677			1,120			5,520			16,807
Financial Derivative contracts (all speculative and
hedging instruments)		(50,918,290	)		(390,443	)		(178,969	)		(229,677	)		(51,717,379	)

Total contractual obligations		(38,468,693	)		2,873,554			1,070,129			1,491,476			(33,033,534	)


	As of December 31, 2015
Contractual Obligations	Less than 1 year			1-3 years			3-5 years			More than 5 years			Total
	MCh$			MCh$			MCh$			MCh$			MCh$
Time deposits and saving accounts		7,948,599			637,279			31,111			100,488			8,717,477
Deposits and other demand liabilities		2,529,999			1,901,621			—			—			4,431,620
Bank obligations		1,280,826			288,470			12,369			86,555			1,668,220
Investments under repurchase agreements		260,631			—			—			—			260,631
Issued debt Instruments		441,817			191,933			1,124,216			1,469,589			3,227,555
Other financial liabilities		9,597			1,077			295			3,506			14,475
Financial Derivative contracts (all speculative and hedging instruments)		(40,252	)		(89,094	)		(97,265	)		(70,045	)		(296,656	)


Total contractual obligations		12,431,217			2,931,286			1,070,726			1,590,093			18,023,322

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

NOTE ~~37—~~37 - FOREIGN CURRENCY POSITION

Assets and liabilities denominated in foreign currencies or indexed to changes in exchange rates are summarized below:


													Payable in Foreign currency				Payable in Chilean Peso (*)				Total
	Payable in Foreign currency				Payable in Chilean Peso (*)				Total				2014		2015		2014		2015		2014		2015
	2013		2014		2013		2014		2013		2014		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
ASSETS
Cash and due from banks		1,466,885		1,709,883		—		—		1,466,885		1,709,883		1,709,883		1,158,904		—		—		1,709,883		1,158,904
Cash in the process of collection		66,520		101,643		—		—		66,520		101,643		101,643		119,532		—		—		101,643		119,532
Trading portfolio financial assets		742,214		1,079,188		—		—		742,214		1,079,188		1,079,188		361,020		—		—		1,079,188		361,020
Investments under agreements to resell		360,945		84,189		—		—		360,945		84,189		84,189		19,887		—		—		84,189		19,887
Derivative financial instruments		432,891		749,878		—		—		432,891		749,878		749,878		938,470		—		—		749,878		938,470
Loans and receivables to customers and banks		11,928,681		11,134,939		27,030		16,014		11,955,711		11,150,953		11,134,939		9,573,784		16,014		739		11,150,953		9,574,523
Financial investments available-for-sale		627,197		862,438		15,575		15,966		642,772		878,404		862,438		1,412,390		15,966		15,388		878,404		1,427,778
Held to maturity investments		434,813		303,079		—				434,813		303,079		303,079		231,794				—		303,079		231,794
Investments other companies		20,885		9,117		—				20,885		9,117		9,117		6,445						9,117		6,445
Intangible assets		675,690		530,392		—		—		675,690		530,392		530,392		403,857		—		—		530,392		403,857
Property, plant and equipment, net		117,650		88,936		—		—		117,650		88,936		88,936		71,866		—		—		88,936		71,866
Current taxes		—		2,656		—		—		—		2,656		2,656		6,261		—		—		2,656		6,261
Deferred income taxes		104,462		111,035		—		—		104,462		111,035		111,035		86,622		—		—		111,035		86,622
Other assets		186,623		341,098		—		—		186,623		341,098		341,098		407,050		—		—		341,098		407,050

TOTAL ASSETS		17,165,456		17,108,471		42,605		31,980		17,208,061		17,140,451		17,108,471		14,797,882		31,980		16,127		17,140,451		14,814,009


LIABILITIES
Current accounts and demand deposits		4,910,952		4,932,778		—		—		4,910,952		4,932,778		4,932,778		4,782,173		—		—		4,932,778		4,782,173
Cash in the process of collection		25,862		130,088		—		—		25,862		130,088		130,088		29,035		—		—		130,088		29,035
Obligations under repurchase agreements		507,882		1,078,411		—		—		507,882		1,078,411		1,078,411		338,571		—		—		1,078,411		338,571
Time deposits and saving accounts		6,011,191		5,401,615		2		—		6,011,193		5,401,615		5,401,615		4,976,382		—		—		5,401,615		4,976,382
Derivative financial instruments		298,169		576,334		—		—		298,169		576,334		576,334		625,884		—		—		576,334		625,884
Borrowings from financial institutions		2,420,399		2,367,897		—		—		2,420,399		2,367,897		2,367,897		2,154,708		—		—		2,367,897		2,154,708
Debt issued		1,387,464		2,090,756		—		—		1,387,464		2,090,756		2,090,756		1,960,621		—		—		2,090,756		1,960,621
Other financial obligations		2,131		2,264		1,180		—		3,311		2,264		2,264		2,267		—		—		2,264		2,267
Current taxes		34,973		—		—		—		34,973		—		—		—		—		—		—		—
Deferred income taxes		157,710		152,395		—		—		157,710		152,395		152,395		129,623		—		—		152,395		129,623
Provisions		152,679		127,412		—		—		152,679		127,412		127,412		97,953		—		—		127,412		97,953
Other Liabilities		299,884		160,618		—		—		299,884		160,618		160,618		147,822		—		—		160,618		147,822

TOTAL LIABILITIES		16,209,296		17,020,568		1,182		—		16,210,478		17,020,568		17,020,568		15,245,039		—		—		17,020,568		15,245,039

(*)	Includes transactions denominated in foreign currencies but that are settled in pesos.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

NOTE ~~38—~~38 - SUBSEQUENT EVENTS

CORPBANCA

a)a.	Fine for Exceeding Credit Margins

On January 18, 2016, CorpBanca brought an action before the Santiago Court of Appeals seeking the annulment of the fine. As of today, the court has not issued its ruling.

b.	Board of Directors

At the ~~Board of Directors~~Ordinary Shareholder’s Meeting held on ~~February 20, 2015,~~March 11, 2016 was agreed:

Proceed to the ~~Annual Shareholder Meeting was scheduled for~~total renovation of the Board of Corpbanca, were elected the following 9 Directors and 2 Alternates:

Directors:

Jorge Andrés Saieh Guzmán as Chairman

Fernando Aguad Dagach as First Vice Chairman

Jorge Selume Zaror as Second Vice Chairman.

Francisco Mobarec Asfura

Ana Holuigue Barros

Julio Barriga Silva

Gustavo Arriagada Morales

Hugo Verdegaal

José Luis Mardones Santander

Alternate Directors:

María Catalina Saieh Guzmán

Alvaro Barriga Oliva.

In the same shareholders’ meeting Mr. Fernando Massu Taré reports that will leave his position of CEO of CoprBanca from the next March ~~12, 2015.~~ 28, 2016.

At such meeting the dividend distribution of ~~50%~~51.58% of ~~2014~~2015 net income ~~(local gaap)~~(Chilean Bank GAAP) in the amount of MCh$~~113,130,~~104,082, equivalent to ~~$0.33~~$0.30580171 dividend per share, was approved.

The matters described above do not involve any adjustments to the financial statements as of December 31, 2015.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2014 and 2015 and for the years ended

December 31, 2013, 2014 and 2015

c.	Law 20,899 Simplification of Tax System and Improvements to Other Tax Provisions

On February 1, 2016, the President of Chile signed Law No. 20,899, which simplifies and includes specifications regarding the 2014 tax reform (Law No. 20,780), focusing on four specific objectives:

Simplify and include specifications regarding the tax reform;

Ensure intended revenue collection;

Maintain the system’s progressive nature; and

Maintain tools to prevent evasion and avoidance.

Among the most important aspects of this law are changes with respect to the adoption of the tax systems incorporated by Law 20,780 of 2014. The previous reform established two optional regimes taking effect in 2017: the attributed income regime and the semi-integrated regime.

Law 20,899 signed last February 1st keeps the two systems, but specifies that they shall be applied as follows:

Attributed income regime: exclusively for companies with partners or owners that consist only of individuals domiciled or residing in Chile or individuals or legal entities not domiciled or residing in Chile. Under this regime, income will be taxed at the end of the commercial year and the companies’ partners can deduct 100% of the taxes paid by the company as a credit against their final taxes. Companies that use this regime will use a rate of 24% in 2016 and 25% in 2017.

ii.

Semi-integrated regime: this regime applies to corporations and companies with at least one owner or shareholder that is another company. Income is taxed when profits are distributed, but shareholders only have the right to credit 65% of the taxes paid by the company against their final taxes, with the exception of shareholders that reside in a country that has a tax treaty in effect with Chile or that has been signed before 01.01.2017, but as of that date is not in effect such as the United States, Argentina, China, South Africa and Italy. These companies shall use tax rates of 24% in 2016, 25.5% in 2017 and 27% in 2018.

Other modifications incorporated into this law are related to general anti-elusion laws and the application of value added tax (VAT) to certain transactions, mainly sales of real estate and leases with purchase options.

The matters described above do not involve any adjustments to the financial statements as of December 31, ~~2014.~~2015.

b)	~~Panamanian Banking Superintendency Approves Itaú – CorpBanca Merger~~

On January 6, 2015, the merger of Banco Itaú Chile and CorpBanca that was announced in 2013 was approved. Integration of these banks remains conditional upon approval from the shareholders of both entities as well as regulatory approval in Chile from the SBIF, in Panama from the Securities Market Superintendency (SMV) and in Colombia from the Colombian Stock Exchange (BVC).

~~The matters described above do not involve any adjustments to the financial statements as of December 31, 2014.~~

c)	~~Acquisition of society Recaudaciones y Cobranzas S.A.~~

On February 25, 2015, CorpBanca acquired 73,609 shares of the company “Recaudaciones y Cobranzas S.A”, and its subsidiary CorpBanca Financial Consulting S.A. acquired 1 share of the same entity, therefore, the Bank becomes holder, directly and indirectly, 100% of its capital stock, the operation involved a total of MCh $488.

~~The matters described above do not involve any adjustments to the financial statements as of December 31, 2014.~~

d)	~~Strategic Partnership between Itaú-Unibanco and CorpBanca~~

On March 4, 2015, CorpBanca communicated publichy that it has corrected information related to the percentage participation that CorpGroup will have in the new bank that will be the result of the merger with Itaú Unibanco:

~~CorpGroup will own 33.13% of the new Chilean bank and not 32.92% as it informed when the merger was announced.~~

~~Itaú-Unibanco will control the new bank with a 33.58% of the share capital, and 33.29% (not 33.5%) of the capital in the market.~~

~~The matters described above do not involve any adjustments to the financial statements as of December 31, 2014.~~

CORPBANCA COLOMBIA

a.	~~Profit Distribution~~

~~In March~~a. Profit Distribution

On January 29, 2015, shareholders of Banco CorpBanca Colombia and the other companies within the CorpBanca Colombia Group met and agreed to distribute profits as follows:

~~CORPBANCA AND SUBSIDIARIES~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~As of December 31, 2013 and 2014 and for the years ended~~

~~December 31, 2012, 2013 and 2014~~

Banco CorpBanca Colombia

   MCOP$    MCh$
Profit for the period
   189,788       45,644
Release of fiscal reserve
   —         —
Total available to shareholders
   189,788       45,644




Dividend payments
—      —
Total
189,788    45,644

In accordance with article 451 of the Colombian Commerce Code, the proposed distribution for 2014 profits does not include amounts for statutory reserves, occasional reserves or tax payments. Therefore, 100% of profit for the year will be allocated to legal reserves.

~~In accordance with the irrevocable commitment approved in an extraordinary meeting on March 20, 2015.~~

~~For subsidiaries:~~

CorpBanca Investment Trust Colombia

   MCOP$    MCh$
Profit for the period
   14,736       3,544
Release of fiscal reserve
   —         —
Total available to shareholders
   14,736       3,544




Dividend payments
13,263    3,192
Total
1,473    412

Dividend payment of COP$1,765.88 per share for 7,510,522 outstanding common shares, payable in cash to shareholders registered as of April 1, 2015, of which Banco CorpBanca Colombia received MCOP$12,533 (MCh$3,014) and CorpBanca Chile received MCOP$729 (MCh$175).

Helm Comisionista

   MCOP$    MCh$
Profit for the period
   4,411       1,061
Retained earnings from prior periods
   1,737       418
Total available to shareholders
   6,148       1,479




Retained earnings
2,055    494
Dividend payments
3,500    842
Total
593    143

Dividend payment of COP$0.396 per share for 10,100,076 outstanding common shares, payable in of April 30, 2015, of which Banco CorpBanca Colombia will receive MCOP$3,324 (MCh$799) and CorpBanca Chile will receive MCOP$78 (MCh$19).


Banco CorpBanca Colombia
	MCOP$		MCh$
Profit for the period		319,241,495		72,340
Release of fiscal reserve		—		—

Total available to shareholders		319,241,495		72,340


Dividend payments		—		—

Total		319,241,495		72,340

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

Helm Fiduciaria

   MCOP$    MCh$
Profit for the period
   8,968       2,157
Total available to shareholders
   8,968       2,157




Dividend payments
3,835    922
Total
5,133    1.436

On February 8, 2016, Banco CorpBanca ~~Colombia received MCOP$3,606 (MCh$867).~~signed an agreement with TransUnion Netherlands II B.V., to sell one hundred percent (100%) of its shareholding in the corporation CIFIN S.A., which is authorized as a technical and administrative services company and accredited as a provider of financial, credit and commercial information and services.

The matters described above do not involve any adjustments to the financial statements as of December 31, ~~2014.~~2015.

~~CORPBANCA CORREDORES DE BOLSA S.A.~~b. Bond Placement

On March 2, 2016, the Bank placed bonds on national markets totaling MCOP$300.000, the issuance and placement was as following:

a)	~~Board of Directors~~

~~At a twenty-second Ordinary General Shareholders’ Meeting held March 12, 2015, the shareholders elected the following individuals to the Board of Directors:~~

~~Directors:~~

~~Jose Francisco Sanchez Figueroa.~~

~~José Manuel Garrido Bouza.~~

~~Pablo De La Cerda Merino.~~

~~Américo Becerra Morales.~~

~~Felipe Hurtado Arnolds.~~


	MCOP $		Expiration Date	Reference	Rate
BBSA 16SA24		215,000	3/2/2018	FIJA		8.99	%
BBSA 168B18		85,000	9/2/2017	IBR +		2.39	%

		300,000

The matters described above do not involve any adjustments to the financial statements as of December 31, ~~2014.~~

~~CORPBANCA CORREDORES DE SEGUROS S.A.~~

a)	~~Board of Directors~~

~~At the Ordinary General Shareholders’ Meeting held April 14, 2015, the shareholders elected the following individuals to the Board of Directors:~~

~~Directors:~~

~~Richard Kouyoumdjian Inglis.~~

~~Francisco Guzmán Bauza.~~

~~Pablo De La Cerda Merino.~~

~~Américo Becerra Morales.~~

~~Oscar Cerda Urrutia.~~

~~The matters described above do not involve any adjustments to the financial statements as of December 31, 2014.~~2015.

CORPBANCA AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, ~~2013~~2014 and ~~2014~~2015 and for the years ended

December 31, ~~2012,~~ 2013, 2014 and ~~2014~~2015

~~CORPBANCA ADMINISTRADORA GENERAL DE FONDOS~~

a)	~~Legal Matters~~

On September 26, 2013, the Company was notified of a lawsuit brought by José Hernán Romero Salinas against CorpBanca Administradora General de Fondos S.A. filed with the 12th Civil Court of Santiago, Case No. C-9302-2013. The lawsuit petitions the court to render null and void four mutual fund investment agreements. As a result of the annulment, the plaintiff is requesting that the subsidiary be sentenced to /i/ return all funds invested in the four mutual fund investment agreements; /ii/ pay for lost profits valued at Ch$100,000,000, which is equivalent to the money that the plaintiff would have invested in fixed income mutual fund units as of the date of filing the lawsuit; and /iii/ pay the plaintiff the sum of MCh$50 for moral damages. On December 1, 2014, the first instance ruling was issued, partially accepting the lawsuit by declaring the agreements null and void and ordering the subsidiary to refund the sum of Ch$512,792,497 consisting of the money handed over to invest. The ruling rejected the petition for lost profits and moral damages filed by the plaintiff. On January 6, 2015, the Bank filed a motion for cassation on grounds of form, arguing a lack of factual and legal grounds for the basis of the ruling and appeal. On January 16, 2015, the plaintiff appealed the ruling, requesting modification for the ruling to include compensation for moral damages, lost profits and court costs. Both filings are pending processing.

~~The matters described above do not involve any adjustments to the financial statements as of December 31, 2014.~~

Between January 1, ~~2015,~~2016, and ~~April 29, 2015,~~March 31, 2016, the date of issuance of these consolidated financial statements, there have been no other events after the reporting period that could affect the presentation and/or results of the financial statements.


Juan Vargas Matta		Fernando Massú Tare
Accounting Manager		Chief Executive Officer

~~F-228~~F-229


Title of each class		Name of each exchange on which registered
American Depositary Shares representing common shares		New York Stock Exchange
Common shares, no par value*		New York Stock Exchange*


PART I		1
ITEM 1.	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS	1
ITEM 2.	OFFER STATISTICS AND EXPECTED TIMETABLE	1
ITEM 3.	KEY INFORMATION	1
ITEM 4.	INFORMATION ON THE COMPANY	33	28
ITEM 4A.	UNRESOLVED STAFF COMMENTS	~~123~~	113
ITEM 5.	OPERATING AND FINANCIAL REVIEW AND PROSPECTS	~~123~~	113
ITEM 6.	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES	~~154~~	140
THE DIRECTORS COMMITTEE AND AUDIT COMMITTEE
ITEM 7.	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS	~~162~~	149
ITEM 8.	FINANCIAL INFORMATION	~~166~~	152
ITEM 9.	OFFER AND LISTING DETAILS	~~168~~	154
ITEM 10.	ADDITIONAL INFORMATION	~~169~~	155
ITEM 11.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT FINANCIAL RISK	~~204~~	191
ITEM 12.	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES	~~238~~	236

PART II		~~238~~	237
ITEM 13.	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	~~238~~	237
ITEM 14.	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	~~238~~	237
ITEM 15.	CONTROLS AND PROCEDURES	~~239~~	237
ITEM 16.	RESERVED	~~241~~	240
ITEM 16A.	AUDIT COMMITTEE FINANCIAL EXPERT	~~241~~	240
ITEM 16B.	CODE OF ETHICS	~~241~~	240
ITEM 16C.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	~~242~~	240
ITEM 16D.	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	~~242~~	241
ITEM 16E.	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS	~~243~~	241
ITEM 16F.	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT	~~243~~	241
ITEM 16G.	CORPORATE GOVERNANCE	~~244~~	241
ITEM 16H.	MINE SAFETY DISCLOSURE	~~245~~	242

PART III		~~246~~243
ITEM 17.	FINANCIAL STATEMENTS	~~246~~	243
ITEM 18.	FINANCIAL STATEMENTS	~~246~~	243
ITEM 19.	EXHIBITS	~~246~~	243


	Daily Observed Exchange Rate (Ch$ per US$)⁽¹⁾
	Low⁽²⁾		High⁽²⁾		Average⁽³⁾		Period-End⁽⁴⁾
Year ended December 31,
2010		468.37		549.17		510.38		468.37
2011		455.91		533.74		483.36		521.46
2012		469.65		519.69		486.75		478.60
2013		466.50		533.95		495.00		523.76
2014		524.61		621.41		570.01		607.38

Quarterly period
2013 1st Quarter		470.67		479.96		472.50		472.54
2013 2nd Quarter		466.50		514.38		484.38		503.86
2013 3rd Quarter		496.49		516.83		507.47		502.97
2013 4th Quarter		493.36		533.95		516.00		523.76
2014 1st Quarter		524.61		573.24		551.48		550.53
2014 2nd Quarter		544.96		566.88		554.35		550.60
2014 3rd Quarter		548.72		601.66		576.31		601.66
2014 4th Quarter		576.50		621.41		598.18		607.38
2015 1st Quarter		606.75		642.18		624.42		626.87

Month ended
September 2014		585.29		601.66		593.47		601.66
October 2014		576.65		599.22		589.98		576.65
November 2014		576.50		600.37		592.46		598.94
December 2014		605.46		621.41		612.92		607.38
January 2015		606.75		629.09		620.91		626.48
February 2015		616.86		632.19		623.62		617.67
March 2015		617.38		642.18		628.50		626.87
April 2015⁽⁵⁾		610.74		626.58		615.78		618.02


	Daily Observed Exchange Rate (Ch$ per US$)⁽¹⁾
	Low⁽²⁾		High⁽²⁾		Average⁽³⁾		Period-End⁽⁴⁾
Year ended December 31,
2011		455.91		533.74		483.36		521.46
2012		469.65		519.69		486.75		478.60
2013		466.50		533.95		495.00		523.76
2014		524.61		621.41		570.01		607.38
2015		597.10		715.66		654.25		707.34

Quarterly period
2014 1st Quarter		524.61		573.24		551.48		550.53
2014 2nd Quarter		544.96		566.88		554.35		550.60
2014 3rd Quarter		548.72		601.66		576.31		601.66
2014 4th Quarter		576.50		621.41		598.18		607.38
2015 1st Quarter		606.75		642.18		624.42		626.87
2015 2nd Quarter		597.10		637.80		617.76		634.58
2015 3rd Quarter		636.39		706.24		676.25		704.68
2015 4th Quarter		673.91		715.66		697.75		707.34

Month ended
September 2015		676.74		705.92		691.73		704.68
October 2015		673.91		698.72		685.31		690.34
November 2015		688.94		715.66		704.00		712.63
December 2015		693.72		711.52		704.24		707.34
January 2016		710.16		730.31		721.95		711.72
February 2016		689.18		715.41		704.08		689.18
March 2016⁽⁵⁾		678.22		694.82		685.12		678.22


	Bank’s Exchange Rate Ch$ per US$1
	Low⁽²⁾		High⁽²⁾		Average⁽³⁾		Period-End
Year ended December 31,
2010		467.78		547.94		510.18		467.78
2011		455.87		535.03		483.49		519.08
2012		469.68		518.65		486.68		479.16
2013		466.48		533.95		495.31		526.41
2014		605.46		621.56		612.85		605.46

Quarterly period
2013 1st Quarter		470.39		475.26		472.36		471.89
2013 2nd Quarter		466.48		513.66		484.94		507.89
2013 3rd Quarter		494.43		518.64		507.42		504.22
2013 4th Quarter		493.53		533.95		516.37		526.41
2014 1st Quarter		526.84		573.21		551.91		550.62
2014 2nd Quarter		544.80		567.56		554.49		552.81
2014 3rd Quarter		548.93		601.25		577.15		597.66
2014 4th Quarter		575.31		621.56		598.21		605.46
2015 1st Quarter		612.33		642.07		624.73		623.96

Month ended
September 2014		585.29		601.25		593.91		597.66
October 2014		575.31		598.44		588.69		576.41
November 2014		581.71		607.98		594.05		607.98
December 2014		605.46		621.56		612.85		605.46
January 2015		612.33		632.57		622.30		632.57
February 2015		615.61		630.94		622.82		618.01
March 2015		616.97		642.07		628.80		623.96
April 2015⁽⁴⁾		609.77		619.75		615.13		616.42


Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨		~~Accelerated filer~~ ¨		~~Non-accelerated filer~~ ¨


	For the fiscal years ended December 31,																		For the fiscal years ended December 31,
	2010			2011			2012			2013			2014			2014⁽¹⁾			2011			2012			2013			2014			2015			2015⁽¹⁾
	Ch$			Ch$			Ch$			Ch$			Ch$			US$			Ch$			Ch$			Ch$			Ch$			Ch$			US$
	(in millions of Ch$, in thousands of US$)⁽²⁾																		(in million of Ch$, in thousand of US$)⁽²⁾
Interest income		387,639			528,622			762,992			1,007,106			1,320,124			2,180,365			528,622			762,992			1,007,106			1,320,124			1,299,480			1,829,429
Interest expense		(163,229	)		(335,622	)		(506,116	)		(549,416	)		(689,240	)		(1,138,374	)		(335,622	)		(506,116	)		(549,416	)		(689,240	)		(678,901	)		(955,768	)


Net interest income		224,410			193,000			256,876			457,690			630,884			1,041,991			193,000			256,876			457,690			630,884			620,579			873,661

Net service fee income		58,221			60,362			85,644			117,977			161,590			266,888			60,362			85,644			117,977			161,590			152,847			215,181
Trading and investment, foreign exchange gains and other operating income		44,033			80,469			104,398			127,039			199,225			329.047			80,469			104,398			127,039			199,225			211,153			297,265
Total operating expenses		(132,683	)		(152,706	)		(253,644	)		(362,145	)		(509,672	)		(841,793	)		(152,706	)		(253,644	)		(362,145	)		(509,672	)		(480,789	)		(676,861	)
Income attributable to investments in other companies		296			250			367			1,241			1,799			2,971			250			367			1,241			1,799			1,300			1,830
Provisions for loan losses		(52,351	)		(40,754	)		(51,575	)		(102,072	)		(127,272	)		(210,207	)		(40,754	)		(51,575	)		(102,072	)		(127,272	)		(169,748	)		(238,974	)

Income before income taxes		141,926			140,621			142,066			239,730			356,554			588,897			140,621			142,066			239,730			356,554			335,342			472,703
Income taxes		(20,353	)		(23,303	)		(22,913	)		(64,491	)		(82,853	)		(136,843	)		(23,303	)		(22,913	)		(64,491	)		(82,853	)		(96,677	)		(136,103	)


Net income for the year		121,573			117,318			119,153			175,239			273,701			452,054			117,318			119,153			175,239			273,701			238,665			335,999

Net income per common share ⁽³⁾		0.54			0.51			0.43			0.48			0.69			0.00114			0.51			0.43			0.48			0.69			0.64			0.00089
Dividend per common share⁽⁴⁾		0.54			0.52			0.49			0.18			0.260			0.00043			0.52			0.49			0.176			0.260			0.332			0.00047
Dividends per ADS^{(4) (5)}		804			787			736			265			390			0.64
Shares of common stock outstanding (in thousands)		226,906,772.0			226,909,290.6			250,358,194.2			340,358,194.2			340,358,194.2			—
Dividends per ADS⁽⁴⁾																				787			736			265			390			499			0.70
Shares of common stock outstanding (in thousand)																				226,909,290.6			250,358,194.2			340,358,194.2			340,358,194.2			340,358,194.2


	As of and for the year ended December 31,
	2011			2012			2013			2014			2015
Profitability and Performance
Net interest margin⁽¹⁾		2.7	%		2.3	%		3.4	%		3.8	%		3.6	%
Return on average total assets⁽²⁾		1.5	%		0.9	%		1.1	%		1.4	%		1.2	%
Return on average equity⁽³⁾		19.6	%		13.1	%		12.7	%		18.2	%		18.0	%
Efficiency ratio (consolidated)⁽⁴⁾		45.7	%		56.8	%		51.5	%		51.4	%		48.8	%
Dividend payout ratio⁽⁵⁾		100.0	%		100.0	%		50.0	%		57.0	%		51.6	%

Capital
Average equity as a percentage of average total assets		7.5	%		7.2	%		8.9	%		7.7	%		6.4	%
Equity as a percentage of total liabilities		9.1	%		8.0	%		11.0	%		9.7	%		8.0	%

Asset Quality
Allowances for loan losses as a percentage of overdue loans⁽⁶⁾		153.8	%		101.8	%		76.5	%		65.3	%		77.5	%
Overdue loans as a percentage of total loans⁽⁶⁾		1.0	%		1.1	%		1.3	%		1.5	%		1.5	%
Allowances for loan losses as a percentage of total loans		1.5	%		1.1	%		1.0	%		1.0	%		1.2	%
Past due loans as a percentage of total loans⁽⁷⁾		0.7	%		0.5	%		0.5	%		0.6	%		0.7	%

Other Data
Inflation rate
Foreign exchange rate (Ch$/US$)		11.0	%		(7.7	)%		9.9	%		15.0	%		17.3	%
Number of employees		3,461			5,163			7,298			7,456			7,545
Number of branches and offices		116			209			295			298			304


Year	Chilean UF Variation⁽¹⁾	Chilean Inflation (CPI)	Colombian Inflation (CPI)
	(in percentages)
2010	2.4	3.0	3.2
2011	3.9	4.4	3.7
2012	2.5	1.5	2.4
2013	2.1	3.0	1.9
2014	5.7	4.6	3.7


	For the Year Ended December 31,						For the Year Ended December 31,
	2012		2013		2014		2013		2014		2015
	(in millions of Ch$)						(in million of Ch$)
Land and buildings		173		3,874		1,291		3,874		1,291		4,873
Machinery and equipment		3,335		2,908		7,729		2,908		7,729		9,601
Furniture and fixtures		2,162		2,894		5, 135		2,894		5,135		5,399
Vehicle		58		3		—		3		—		—
Other		17,767		24,686		13,038		24,686		13,038		17,389

Total		23,495		34,366		27,193		34,366		27,193		37,262


	Net Interest Income by geographic market
	Year ended December 31,
	2012		2013		2014
	(in millions of Ch$)
CorpBanca Chile		182,218		253,889		331,572
CorpBanca Colombia⁽¹⁾⁽²⁾		66,288		196,324		290,113
CorpBanca New York		8,370		7,477		9,199

Total		256,876		457,690		630,884


	Bank Loans⁽¹⁾
	As of December 31,
	2012		2013		2014
	(in millions of Ch$)
Banco Santander-Chile		18,876,079		20,935,312		22,880,706
Banco de Chile		18,761,765		20,869,511		21,876,648
BCI		13,047,497		14,423,318		15,773,528
CORPBANCA⁽²⁾		10,160,598		13,085,663		14,211,349
Banco Bilbao Vizcaya Argentaria, BBVA		7,057,879		7,537,202		8,338,898
Scotiabank Chile		4,890,267		5,419,672		6,285,129
Others		27,969,100		31,925,978		36,501,973

Total		100,763,185		114,196,656		125,868,231


	Bank Deposits and Other Obligations⁽¹⁾
	As of December 31,
	2012		2013		2014
	(in millions of Ch$)
Banco Santander-Chile		14,082,232		15,296,035		16,894,437
Banco de Chile		15,083,921		16,387,057		16,655,619
BCI		10,840,953		11,628,315		12,821,049
CORPBANCA⁽¹⁾		8,795,350		10,789,086		12,031,914
Banco Bilbao Vizcaya Argentaria Chile (BBVA)		5,342,368		5,912,767		6,316,699
Scotiabank Chile		3,189,778		3,392,308		3,804,363
Others		29,403,392		33,746,086		36,959,088

Total		86,737,994		97,151,654		105,483,169


	Shareholders’ Equity⁽¹⁾
	As of December 31,
	2012		2013		2014
	(in millions of Ch$)
Banco Santander-Chile		1,864,083		2,016,330		2,224,664
Banco de Chile		1,841,966		2,095,294		2,268,662
BCI		1,230,077		1,371,893		1,560,882
CORPBANCA⁽²⁾		881,905		1,333,795		1,330,297
Banco Bilbao Vizcaya Argentaria Chile (BBVA)		591,982		631,042		663,829
Scotiabank Chile		569,214		606,391		652,403
Others		3,262,739		3,459,970		3,993,427

Total		10,241,966		11,514,715		12,694,164


	Shareholders’ Equity⁽¹⁾⁽²⁾
	As of December 31,
	2013		2014		2015
	(in million of Ch$)
Banco Santander-Chile		2,016,330		2,224,664		2,420,484
Banco de Chile		2,095,294		2,268,662		2,505,558
Banco de Crédito e Inversiones (BCI)		1,371,893		1,560,882		1,771,113
CORPBANCA⁽³⁾		1,333,795		1,330,297		1,082,837
Banco Bilbao Vizcaya Argentaria Chile (BBVA)		631,042		663,829		722,896
Scotiabank Chile		606,391		652,403		703,600
Others		3,459,970		3,993,427		4,590,585

Total		11,514,715		12,694,164		13,797,073


Rating Agency	Short Term	Long Term
Moody’s	P-2	Baa3
Standard and Poor’s	A-2	BBB-
Fitch Rating Service	F2	BBB-
Dominion Bond Rating Service (DBRS)	R-2	BBB (low)


	1 + Np			(1 + Nd)(1 + D)
Rp=	1 + Np	-1	Rd=	(1 + Nd)(1 + D)	-1
	1 + 1			1+1


~~Rd=~~	(1 + 0.10)(1 + 0.05)	~~-1=~~		3.125% per year
Rd=	(1 + 0.10)(1 + 0.05)	~~-1=~~	-1=	3.125% per year
	1 + 0.12


	Increase (Decrease) from 2012 to 2013 due to changes in									Net Change from 2012 to 2013			Increase (Decrease) from 2013 to 2014 due to changes in
	Volume			Rate			Rate and Volume			Net Change from 2012 to 2013			Volume			Rate			Rate and Volume			Net Change from 2013 to 2014
	(in millions of Ch$)												(in million of Ch$)
ASSETS
INTEREST EARNING ASSETS
Deposits in Central Bank
Ch$		(8	)		(2	)		(156	)		(167	)		331			12			1,474			1,816
UF		—			—			—			—			—			—			—			—
Foreign currency		—			—			—			—			—			—			—			—

Total		(8	)		(2	)		(156	)		(167	)		331			12			1,474			1,816

Financial Investments
Ch$		(280	)		(2	)		(188	)		(470	)		3,638			(30	)		(3,657	)		(48	)
UF		(13,408	)		(62	)		(2,984	)		(16,454	)		(2,653	)		114			8,276			5,737
Foreign currency		6,826			—			(2,848	)		3,978			9,222			—			(13,019	)		(3,797	)

Total		(6,892	)		(62	)		(6,021	)		(12,946	)		10,208			85			(8,400	)		1,892

Total Loans
Ch$		25,481			33			3,593			29,108			(8,358	)		(154	)		(14,853	)		(23,365	)
UF		22,553			(115	)		(12,495	)		9,944			(7,182	)		1,394			133,943			128,156
Foreign currency		77,576			831			122,930			201,337			202,916			25			3,870			206,811

Total		125,610			749			114,029			240,388			187,376			1,265			122,960			311,601

Interbank Loans
Ch$		3,296			(2	)		(230	)		3,064			1,611			(38	)		(4,246	)		(2,673	)
UF		—			—			—			—			—			—			—			—
Foreign currency		(573	)		9			648			85			(101	)		(9	)		(890	)		(1,000	)

Total		2,723			7			420			3,150			1,510			(47	)		(5,135	)		(3,672	)

Investment under resale agreements
Ch$		832			(2	)		(294	)		536			23			(6	)		(618	)		(602	)
UF		—			(1	)		(50	)		(51	)		(7	)		—			24			17
Foreign currency		(8	)		135			12,848			12,975			3,228			(34	)		(4,189	)		(995	)

Total		824			133			12,503			13,460			3,244			(40	)		(4,785	)		(1,580	)

Other interest earning assets
Ch$		—			—			—			—			—			—			—			—
UF		—			—			—			—			—			—			—			—
Foreign currency		1,464			(7	)		(1,228	)		229			1,610			8			1,343			2,961

Total		1,464			(7	)		(1,228	)		229			1,610			8			1,343			2,961

Total interest earning assets
Ch$		29,320			26			2,724			32,071			(2,755	)		(215	)		(21,901	)		(24,872	)
UF		9,146			(176	)		(15,529	)		(6,561	)		(9,841	)		1,509			142,243			133,910
Foreign currency		85,285			967			132,351			218,604			216,875			(10	)		(12,886	)		203,980

Total		123,751			818			119,547			244,114			204,278			1,284			107,457			313,018


	Increase (Decrease) from 2012 to 2013 due to changes in									Net Change from 2012 to 2013			Increase (Decrease) from 2014 to 2015 due to changes in
	Volume			Rate			Rate and Volume			Net Change from 2012 to 2013			Volume			Rate			Rate and Volume			Net Change from 2014 to 2015
	(in millions of Ch$)												(in million of Ch$)
LIABILITIES
INTEREST BEARING LIABILITIES
Time Deposits
ASSETS
INTEREST EARNING ASSETS
Deposits in Central Bank
Ch$		(12,636	)		(149	)		(14,056	)		(26,842	)		(815	)		4			301			(511	)
UF		(1,037	)		(21	)		(1,974	)		(3,032	)		—			—			—			—
Foreign currency		20,005			88			11,783			31,876			—			—			—			—

Total		6,332			(81	)		(4,248	)		2,003			(815	)		4			301			(511	)

Central Bank borrowings
Financial Investments
Ch$		—			—			—			—			(12	)		(32	)		(3,188	)		(3,232	)
UF		—			—			—			—			2,632			39			4,521			7,192
Foreign currency		—			—			—			—			2,175			—			29,741			31,916

Total		—			—			—			—			4,795			7			31,074			35,876

Repurchase Agreements
Total Loans
Ch$		(6,553	)		(13	)		(594	)		(7,161	)		46,823			(267	)		(30,492	)		16,064
UF		(54	)		(1	)		168			113			45,772			(852	)		(94,839	)		(49,918	)
Foreign currency		1,055			39			4,940			6,033			(15,697	)		(84	)		(8,119	)		(23,901	)

Total		(5,552	)		25			4,513			(1,015	)		76,898			(1,203	)		(133,450	)		(57,755	)

Mortgage finance bonds
Interbank Loans
Ch$		(2	)		—			2			—			(1,643	)		(9	)		(728	)		(2,380	)
UF		(2,078	)		(7	)		(589	)		(2,675	)		—			—			—			—
Foreign currency		—			—			—			—			1,021			2			366			1,389

Total		(2,080	)		(7	)		(588	)		(2,675	)		(621	)		(7	)		(362	)		(991	)

Bonds
Investment under resale agreements
Ch$		211			176			17,643			18,030			(129	)		(2	)		(149	)		(281	)
UF		4,275			(98	)		(10,187	)		(6,010	)		(30	)		—			(3	)		(33	)
Foreign currency		24,837			(18	)		(14,506	)		10,312			(7,076	)		186			7,637			748

Total		29,323			60			(7,050	)		22,332			(7,234	)		184			7,485			434

Other interest bearing liabilities
Other interest earning assets
Ch$		965			(72	)		(8,878	)		7,897			—			—			—			—
UF		(369	)		(5	)		(390	)		(763	)		—			—			—			—
Foreign currency		986			286			30,135			31,407			(607	)		33			2,878			2,303

Total		1,580			209			20,866			22,657			(607	)		33			2,878			2,303

Total interest bearing liabilities
Total interest earning assets
Ch$		(18,015	)		(59	)		(5,854	)		(23,960	)		44,224			305			(34,258	)		9,660
UF		737			(131	)		(12,962	)		(12,367	)		48,375			(813	)		(90,321	)		(42,759	)
Foreign currency		46,882			395			32,351			79,628			(20,184	)		137			32,502			12,455

Total		29,603			205			13,494			43,301			72,415			(981	)		(92,076	)		(20,644	)


	Increase (Decrease) from 2013 to 2014 due to changes in												Increase (Decrease) from 2013 to 2014 due to changes in									Net Change from 2013 to 2014
	Volume			Rate			Rate and Volume			Net Change from 2013 to 2014			Volume			Rate			Rate and Volume			Net Change from 2013 to 2014
	(in millions of Ch$)												(in million of Ch$)
ASSETS
INTEREST EARNING ASSETS
Deposits in Central Bank
LIABILITIES
INTEREST BEARING LIABILITIES
Time Deposits
Ch$		331			12			1,474			1,816			4,696			(510	)		(51,491	)		(47,306	)
UF		—			—			—			—			(6,177	)		127			9,956			3,905
Foreign currency		—			—			—			—			30,083			6			834			30,923

Total		331			12			1,474			1,816			28,602			(377	)		(40,702	)		(12,477	)

Financial Investments
Central Bank borrowings
Ch$		3,638			(30	)		(3,657	)		(48	)		—			—			—			—
UF		(2,653	)		114			8,276			5,737			—			—			—			—
Foreign currency		9,222			—			(13,019	)		(3,797	)		—			—			—			—

Total		10,208			85			(8,400	)		1,892			—			—			—			—

Total Loans
Repurchase Agreements
Ch$		(8,358	)		(154	)		(14,853	)		(23,365	)		(3,114	)		(10	)		(341	)		(3,465	)
UF		(7,182	)		1,394			133,943			128,156			—			—			(132	)		(132	)
Foreign currency		202,916			25			3,870			206,811			7,573			53			9,377			17,003

Total		187,376			1,265			122,960			311,601			4,459			43			8,904			13,406

Interbank Loans
Mortgage finance bonds
Ch$		1,611			(38	)		(4,246	)		(2,673	)		—			—			—			—
UF		—			—			—			—			(1,597	)		46			3,694			2,143
Foreign currency		(101	)		(9	)		(890	)		(1,000	)		—			—			—			—

Total		1,510			(47	)		(5,135	)		(3,672	)		(1,597	)		46			3,694			2,143

Investment under resale agreements
Bonds
Ch$		23			(6	)		(618	)		(602	)		62			(289	)		(28,672	)		(28,899	)
UF		(7	)		0			24			17			2,216			701			71,466			74,382
Foreign currency		3,228			(34	)		(4,189	)		(995	)		8,355			169			26,910			35,433

Total		3,244			(40	)		(4,785	)		(1,580	)		10,632			581			69,704			80,916

Other interest earning assets
Other interest bearing liabilities
Ch$		—			—			—			—			(1,096	)		86			10,887			9,876
UF		—			—			—			—			(169	)		26			2,251			2,109
Foreign currency		1,610			8			1,343			2,961			21,153			157			22,542			43,852

Total		1,610			8			1,343			2,961			19,887			268			35,680			55,837

Total interest earning assets
Total interest bearing liabilities
Ch$		(2,755	)		(215	)		(21,901	)		(24,872	)		547			(723	)		(69,617	)		(69,794	)
UF		(9,841	)		1,509			142,243			133,910			(5,727	)		899			87,235			82,407
Foreign currency		216,875			(10	)		(12,886	)		203,980			67,163			385			59,663			127,211

Total		204,278			1,284			107,457			313,018			61,983			561			77,281			139,824


	Years ended December 31,									Years ended December 31,
	2012			2013			2014			2013			2014			2015
	(in millions of Ch$, except for percentages)									(in million of Ch$, except for percentages)
Net Income		119,153			175,239			273,701
Net income											175,239			273,701			238,665
Net income attributable to the equity holders of the Bank		119,102			162,422			233,997			162,422			233,997			216,321
Average total assets		12,716,553			15,398,217			19,454,259			15,398,217			19,345,868			20,674,205
Average equity		911,442			1,376,012			1,504,727			1,376,012			1,504,727			1,326,176
Net income as a percentage of:
Average total assets		0.94	%		1.14	%		1.41	%		1.14	%		1.41	%		1.15	%
Average equity		13.07	%		12.74	%		18.19	%		12.74	%		18.19	%		18.00	%
Average equity as a percentage of:
Average total assets		7.17	%		8.94	%		7.73	%		8.94	%		7.78	%		6.41	%
Proposed cash dividend⁽¹⁾		60,040			88,403			113,130
Dividend payout ratio, based on net income attributable to shareholders		50	%		57	%		50	%
Proposed annual cash dividend (*)											88,403			113,130			104,082
Special cash dividend (**)																	239,860
Dividend payout ratio, based on net income attributable to shareholders under local GAAP (***)											57	%		50	%		51.58	%


Held-for-trading	In one year or less		Weighted average Nominal Rate		After one year through five years		Weighted average Nominal Rate		After five years through ten years		Weighted average Nominal Rate		After ten years		Weighted average Nominal Rate		Total
Held—for—trading																			In one year or less		Weighted average Nominal Rate		After one year through five years		Weighted average Nominal Rate		After five years through ten years		Weighted average Nominal Rate		After ten years		Weighted average Nominal Rate		Total
	Ch$		%		Ch$		%		Ch$		%		Ch$		%		Ch$		Ch$		%		Ch$		%		Ch$		%		Ch$		%		Ch$
	(in millions of Ch$, except for percentages)																		(in million of Ch$, except for percentages)
Central Bank and Government securities:
Chilean Central Bank securities		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Chilean Central Bank notes		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Others Government securities		4,822		—		—		—		—		—		—		—		4,822		6,210		—		—		—		—		—		—		—		6,210

Other national institution securities:
Bonds		1,968		86.85		343		87.6		51		87.6		186		19.3		2,548		1,561		—		—		—		—		—		779		1.58		2,340
Notes		13,320		—		—		—		—		—		—		—		13,320		34,404		0.11		—		—		—		—		—		—		34,404
Other securities		15		—		—		—		—		—		—		—		15		551		—		—		—		—		—		—		—		551

Foreign institution securities:
Bonds		423,509		0.05		115,100		—		1,596		0.1		2,587		0.1		542,791		211		0.01		21,076		0.07		102,804		0.06		68,336		0.07		192,427
Notes		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other securities		9,085		2.26		27,119		2.3		74,284		2.2		128		0.1		110,615		46,708		0.04		8,978		0.03		—		—		2,189		0.06		57,875

Mutual fund investments:
Funds managed by related organizations		11,787		—		—		—		—		—		—		—		11,787		21,954		1.00		6,138		0.072		—		—		—		—		28,092
Funds managed by third parties		—		—		—		—		—		—		—		—		—		2,000		0.50		—		—		—		—		—		—		2,000

Total Held-for-trading		464,505		0.46		142,562		0.7		75,931		2.2		2,901		1.3		685,898
Total Held—for—trading																				113,599		0.25		36,192		0.06		102,804		0.06		71,304		0.09		323,899


Available—for—sale																			In one year or less		Weighted average Nominal Rate		After one year through five years		Weighted average Nominal Rate		After five years through ten years		Weighted average Nominal Rate		After ten years		Weighted average Nominal Rate		Total
																			Ch$		%		Ch$		%		Ch$		%		Ch$		%		Ch$
																			(in million of Ch$, except for percentages)
Chilean Central Bank and Government securities:
Chilean Central Bank securities																				81,672		0.68		331,979		0.59		113,793		0.59		—		—		527,444
Chilean treasury bonds																				10,086		0.81		214,738		0.65		33,482		0.47		—		—		258,306
Others Government securities																				859		0.63		—		—		—		—		—		—		859

Other financial instruments:
Promissory notes related to deposits in local banks																				65,778		0.28		—		—		—		—		—		—		65,778
Chilean mortgage finance bonds																				16		1.01		44		1.04		31		0.91		—		—		92
Chilean financial institution bonds																				—		—		29,329		1.29		—		—		—		—		29,329
Other local investments																				5,843		1.25		14,480		1.29		33,252		1.23		56		0.92		53,630

Financial instruments issued abroad:
Foreign Government and central bank instruments																				132,086		0.05		340,439		0.05		117,231		0.05		39,541		0.05		629,297
Other foreign investments																				135,035		2.35		168,072		8.63		46,917		8.16		10,031		6.15		360,053
Impairment provision																				—		—		—		—		—		—		—		—		—

Unquoted securities in active markets
Chilean corporate bonds																				—		—		—		—		—		—		—		—		—
Other foreign investments																				—		—		—		—		—		—		—		—		—
Impairment provision																				—		—		—		—		—		—		—		—		—

Total																				431,375		0.22		1,099,080		0.37		344,706		0.38		49,628		0.04		1,924,788


Available-for-sale	In one year or less		Weighted average Nominal Rate		After one year through five years		Weighted average Nominal Rate		After five years through ten years		Weighted average Nominal Rate		After ten years		Weighted average Nominal Rate		Total
	Ch$		%		Ch$		%		Ch$		%		Ch$		%		Ch$
	(in millions of Ch$, except for percentages)
Chilean Central Bank and Government securities:
Chilean Central Bank securities		13,736		3.07		256,268		2.97		6,483		4.24		—		—		276,487
Chilean treasury bonds		12,018		2.92		173,958		3.23		68,023		1.36		—		—		253,999
Others Government securities		5,641		2.90		801		2.83		—		—		—		—		6,442

Other financial instruments:
Promissory notes related to deposits in local banks		15,680		0.29		38,482		1.86		—		—		—		—		54,162
Chilean mortgage finance bonds		45		5.15		80		4.44		73		3.91		5		3.7		203
Chilean financial institution bonds		—		—		—		—		—		—		—		—		—
Other local investments		4,920		5.53		23,506		5.53		23,100		5.53		—		—		51,526

Financial instruments issued abroad:
Foreign Government and central bank instruments		24,985		0.09		73,043		0.07		288,168		0.08		48,196		—		434,392
Other foreign investments		30,436		11.08		20,607		5.00		28,643		4.94		—		—		79,685
Impairment provision		—		—		—		—		—		—		—		—		—

Unquoted securities in active markets
Chilean corporate bonds		—		—		—		—		—		—		—		—		—
Other foreign investments		—		—		—		—		—		—		—		—		—
Impairment provision		—		—		—		—		—		—		—		—		—

Total		107,461		1.19		586,746		2.61		414,489		0.65		48,201		0.0		1,156,896


	2013				2014
Item	MCh$	Ratio Ri			MCh$	Ratio Ri

Commercial loans:	91,354		1.0	%	96,009		1.0	%

	9,285,456				10,090,475

Mortgage loans:	6,968		0.4	%	7,762		0.3	%

	1,988,976				2,229,558

Consumer loans:	27,717		1.7	%	33,834		2.0	%

	1,623,249				1,709,842

Total	126,039		1.0	%	137,605		1.0	%

	12,897,681				14,029,875


IFRS RISK INDEX
	as of December 31,						% Change from 2015/2014
	2014			2015			% Change from 2015/2014
	(in million of constant Ch$ as of December 31, 2015 except for percentages)
Total loans (calculated pursuant to IFRS)		14,029,875			14,628,296			4.3	%
Commercial loans		10,090,475			10,696,518			6.0	%
Mortgage loans		2,229,558			2,228,619			0.0	%
Consumer loans		1,709,842			1,703,159			(0.4	)%

Allowances for loan losses (calculated pursuant to IFRS)		137,605			173,939			26.4	%
Commercial loans		96,009			138,721			44.5	%
Mortgage loans		7,762			8,832			13.8	%
Consumer loans		33,834			26,386			(22.0	)%

Allowances for loan losses as a percentage of total loans		1.0	%		1.2	%		21.2	%
Commercial loans		1.0	%		1.3	%		36.3	%
Mortgage loans		0.3	%		0.4	%		13.8	%
Consumer loans		2.0	%		1.5	%		(21.7	)%



SBIF RISK INDEX
	as of December 31,						% Change from 2015/2014
	2014			2015			% Change from 2015/2014
	(in million of constant Ch$ as of December 31, 2015 except for percentages)
Total loans (calculated pursuant to SBIF requirements)		14,211,349			14,810,136			4.2	%
Commercial loans		10,200,131			10,806,540			5.9	%
Mortgage loans		2,244,885			2,243,946			0.0	%
Consumer loans		1,766,333			1,759,650			(0.4	)%

Allowances for loan losses (calculated pursuant to SBIF requirements)		319,445			355,779			11.4	%
Commercial loans		206,031			254,167			23.4	%
Mortgage loans		23,089			18,735			(18.9	)%
Consumer loans		90,325			82,877			(8.2	)%

Allowances for loan losses as a percentage of total loans		2.2	%		2.4	%		6.9	%
Commercial loans		2.0	%		2.4	%		16.4	%
Mortgage loans		1.0	%		0.8	%		(18.8	)%
Consumer loans		5.1	%		4.7	%		(7.9	)%


	Balance as of December 31, 2014		Due in one month or less		Due after 1 month through 6 months		Due after 6 month through 1 year		Due after 1 year through 3 years		Due after 3 years through 5 years		Due after 5 years		Total		Balance as of December 31, 2015		Due within one month		Due after 1 month through 6 months		Due after 6 month through 1 year		Due after 1 year through 3 years		Due after 3 years through 5 years		Due after 5 years		Total
	(in millions of constant Ch$ as of December 31, 2014)																(in million of constant Ch$ as of December 31, 2015)
Commercial loans		8,303,078		1,130,262		2,060,608		1,170,315		1,257,266		751,875		1,932,752		8,303,078		8,821,860		1,306,668		1,642,414		1,667,495		1,334,978		1,501,840		1,368,464		8,821,860
Foreign trade loans		505,551		130,080		221,623		75,547		33,407		31,105		13,789		505,551		521,339		150,153		221,267		38,611		50,828		47,312		13,169		521,339
Current account debtors		34,850		29,617		3,663		1,570		0		0		0		34,850		28,732		24,538		2,582		1,606		5		—		—		28,732
Factoring operations		69,914		40,612		27,255		659		644		609		135		69,914		62,013		31,114		28,365		1,242		828		465		—		62,013
Leasing transactions		866,492		32,147		54,326		62,163		241,800		220,453		255,602		866,492		888,189		26,453		35,175		45,913		183,295		199,506		397,847		888,189
Other loans and receivables		310,590		17,716		1,989		2,406		9,610		9,433		269,437		310,590		374,385		27,908		5,151		6,207		24,747		23,160		287,211		374,385

Subtotals		10,090,475		1,380,435		2,369,464		1,312,659		1,542,727		1,013,475		2,471,714		10,090,475		10,696,518		1,566,834		1,934,954		1,761,074		1,594,681		1,772,283		2,066,691		10,696,518

Letters of credit loans		64,622		1,777		4,484		4,532		13,531		10,886		29,412		64,622		54,372		1,028		3,116		3,722		12,793		10,193		23,521		54,372
Endorsable mutual mortgage loans		182,314		1,443		7,210		8,643		34,360		33,682		96,976		182,314		161,438		1,533		4,780		5,721		22,666		21,218		105,520		161,438
Mutual loans financed mortgage bonds		0		0		0		0		0		0		0		0		—		—		—		—		—		—		—		—
Other mutual mortgage loans		1,666,311		16,699		50,794		76,175		122,576		173,458		1,226,609		1,666,311		1,701,573		22,048		43,424		50,521		266,742		105,175		1,213,664		1,701,573
Leasing transactions		280,573		258		129		549		5,470		11,048		263,119		280,573		278,882		1,083		189		782		3,386		12,166		261,277		278,882
Other loans and receivables		35,738		276		1,395		1,673		6,652		6,537		19,206		35,738		32,354		269		933		1,118		4,413		4,166		21,454		32,354

Subtotals		2,229,558		20,453		64,012		91,571		182,590		235,612		1,635,321		2,229,558		2,228,619		25,961		52,441		61,865		310,000		152,918		1,625,435		2,228,619

Consumer loans		1,130,858		47,257		19,559		93,080		248,705		282,705		439,552		1,130,858		1,298,194		62,639		68,295		72,312		290,211		517,265		287,472		1,298,194
Current account debtors		47,564		34,726		8,987		3,851		0		0		0		47,564		52,488		37,793		10,496		4,199		—		—		—		52,488
Credit card debtors		241,701		213,835		21,857		5,996		7		6		0		241,701		244,942		213,144		24,449		7,348		—		—		—		244,942
Consumer leasing transactions		19,761		71		602		976		5,729		12,262		121		19,761		18,791		104		286		512		5,525		12,239		125		18,791
Other loans and receivables		269,958		83,368		35,486		39,443		97,662		13,999		0		269,958		88,744		30,100		13,313		14,199		31,083		34		15		88,744

Subtotals		1,709,842		379,257		86,491		143,346		352,103		308,971		439,674		1,709,842		1,703,159		343,781		116,839		98,570		326,819		529,539		287,612		1,703,159

Subtotal loans		14,029,875		1,780,145		2,519,967		1,547,576		2,077,420		1,558,058		4,546,709		14,029,875		14,628,296		1,936,576		2,104,234		1,921,509		2,231,500		2,454,739		3,979,739		14,628,296
Loans and receivables to banks		814,480																452,069

Total loans		14,844,355																15,080,365


	Due in 1 year or less		Due after 1 year through 5 years		Due after 5 years		Balance as of December 31, 2014		Due in 1 year		Due after 1 year through 5 years		Due after 5 years		Balance as of December 31, 2014
	(in millions of constant Ch$ as of December 31, 2014)								(in million of constant Ch$ as of December 31, 2015)
Commercial loans		4,361,185		2,009,141		1,932,752		8,303,078		4,616,577		2,836,818		1,368,464		8,821,859
Foreign trade loans		427,250		64,511		13,789		505,551		410,031		98,140		13,169		521,339
Current account debtors		34,850		0		0		34,850		28,727		5		—		28,732
Factoring operations		68,526		1,254		135		69,914		60,721		1,293		—		62,013
Leasing transactions		148,637		462,253		255,602		866,492		107,541		382,801		397,847		888,189
Other loans and receivables		22,110		19,043		269,437		310,590		39,266		47,907		287,211		374,385

Subtotals		5,062,558		2,556,202		2,471,714		10,090,475		5,262,862		3,366,964		2,066,691		10,696,517

Letters of credit loans		10,793		24,417		29,412		64,622		7,866		22,986		23,521		54,372
Endorsable mutual mortgage loans		17,295		68,043		96,976		182,314		12,034		43,884		105,520		161,438
Mutual loans financed mortgage bonds		0		0		0		0		—		—		—		—
Other mutual mortgage loans		143,668		296,035		1,226,609		1,666,311		115,993		371,917		1,213,664		1,701,573
Leasing transactions		936		16,519		263,119		280,573		2,053		15,552		261,277		278,882
Other loans and receivables		3,344		13,189		19,206		35,738		2,321		8,579		21,454		32,354

Subtotals		176,035		418,202		1,635,321		2,229,558		140,267		462,918		1,625,435		2,228,619

Consumer loans		159,896		531,410		439,552		1,130,858		203,246		807,476		287,472		1,298,194
Current account debtors		47,564		0		0		47,564		52,488		—		—		52,488
Credit card debtors		241,688		13		0		241,701		244,941		—		—		244,942
Consumer leasing transactions		1,649		17,991		121		19,761		902		17,764		125		18,791
Other loans and receivables		158,297		111,661		0		269,958		57,612		31,117		15		88,744

Subtotals		609,094		661,074		439,674		1,709,842		559,190		856,357		287,612		1,703,159

Subtotal loans		5,847,688		3,635,478		4,546,709		14,029,875		5,962,319		4,686,239		3,979,739		14,628,296
Loans and receivables to banks								814,480								452,069

Total loans								14,844,355								15,080,365


	As of December 31, ~~2014~~2015
Variable interest rate
Ch$		~~2,313,092~~386,489
UF		~~3,327,366~~267,865

Ch$ indexed to US$		0407,168
Foreign currency		~~878,569~~2,268,255
Subtotal		~~6,519,028~~3,329,776

Fixed interest rate
Ch$		~~682,094~~949,773
UF		~~363,844~~2,348,767
Ch$ indexed to US$		08,202
Foreign currency		~~617,221~~2,029,460
Subtotal		~~1,663,159~~5,336,202

Total		~~8,182,187~~8,665,978


2015									Due in 1 year or less		Due after 1 year through 5 years		Due after 5 year		Total
									(in million of constant Ch$ as of December 31, 2015)
Commercial loans										512		64,031		62,791		127,334
Foreign loans (*)										1,404,180		1,979,969		1,991,400		5,375,550

	Due in 1 year or less		Due after 1 year through 5 years		Due after 5 years		Total
	(in millions of Ch$)
Commercial loans		4,588		62,593		21,282		88,463
Foreign trade loans^(*)		1,555,186		1,491,579		2,463,600		5,510,365

Total		1,559,774		1,554,173		2,484,882		5,598,828		1,404,693		2,044,001		2,054,191		5,502,884


	Domestic Loans						Foreign Loans as of						Total Loans						Distribution percentage
20-F 2015																												20-F 2015
Loans by Economic Activity																													Domestic Loans as of December 31,						Foreign Loans as of December 31,						Total Loans as of December 31,						Distribution percentage as of December 31,
	as of December 31,																												2013		2014		2015		2013		2014		2015		2013		2014		2015		2013			2014			2015
	2012		2013		2014		2012		2013		2014		2012		2013		2014		2012			2013			2014
Manufacturing		569,720		499,037		965,965		247,564		332,767		111,397		817,284		831,804		1,077,362		8.09	%		6.45	%		7.68	%			499,037		965,965		742,288		332,767		111,397		137,587		831,804		1,077,362		879,875		6.45	%		7.68	%		6.01	%
Mining		244,407		328,377		266,661		112,302		457,884		363,055		356,709		786,261		629,716		3.53	%		6.10	%		4.49	%
Mining and Petroleum																														328,377		266,661		450,459		457,884		363,055		316,248		786,261		629,716		766,707		6.10	%		4.49	%		5.24	%
Electricity, Gas and Water		237,908		146,316		273,576		179,737		351,301		483,644		417,645		497,617		757,220		4.13	%		3.86	%		5.40	%			146,316		273,576		230,658		351,301		483,644		467,077		497,617		757,220		697,735		3.86	%		5.40	%		4.77	%
Agriculture and livestock		236,327		179,008		179,863		26,963		123,906		123,166		263,290		302,914		303,029		2.61	%		2.35	%		2.16	%
Agriculture and Livestock																														179,008		179,863		239,540		123,906		123,166		123,981		302,914		303,029		363,521		2.35	%		2.16	%		2.49	%
Forestry and wood extraction		38,836		23,650		48,344		0		8,875		7,785		38,836		32,525		56,129		0.38	%		0.25	%		0.40	%			23,650		48,344		36,291		8,875		7,785		7,732		32,525		56,129		44,023		0.25	%		0.40	%		0.30	%
Fishing		48,611		1,212		2,199		0		0		0		48,611		1,212		2,199		0.48	%		0.01	%		0.02	%			1,212		2,199		3,252		—		—		—		1,212		2,199		3,252		0.01	%		0.02	%		0.02	%
Transport		153,111		196,092		182,364		50,871		165,982		146,354		203,982		362,074		328,718		2.02	%		2.81	%		2.34	%
Transport and storage																														196,092		182,364		242,533		165,982		146,354		105,593		362,074		328,718		348,126		2.81	%		2.34	%		2.38	%
Communications		16,845		3,423		3,490		54,137		111,671		91,191		70,982		115,094		94,681		0.70	%		0.89	%		0.67	%			3,423		3,490		4,034		111,671		91,191		57,944		115,094		94,681		61,978		0.89	%		0.67	%		0.42	%
Construction		865,713		854,452		887,305		98,660		257,438		214,999		964,373		1,111,890		1,102,304		9.54	%		8.62	%		7.86	%			854,452		887,305		989,048		257,438		214,999		217,069		1,111,890		1,102,304		1,206,117		8.62	%		7.86	%		8.25	%
Commerce		519,220		434,713		415,695		395,650		1,034,412		943,143		914,870		1,469,125		1,358,838		9.05	%		11.39	%		9.69	%			434,713		415,695		500,551		1,034,412		943,143		808,876		1,469,125		1,358,838		1,309,427		11.39	%		9.69	%		8.95	%
Services		2,861,452		2,695,813		2,620,475		228,715		980,883		1,305,238		3,090,167		3,676,696		3,925,713		30.59	%		28.51	%		27.98	%			2,695,813		2,620,475		3,128,986		980,883		1,305,238		1,229,567		3,676,696		3,925,713		4,358,553		28.51	%		27.98	%		29.80	%
Others		223,316		70,829		286,578		84,795		27,415		167,988		308,111		98,244		454,566		3.05	%		0.76	%		3.24	%			70,829		286,578		202,313		27,415		167,988		454,891		98,244		454,566		657,204		0.76	%		3.24	%		4.49	%

Subtotal Commercial Loans		6,015,466		5,432,922		6,132,515		1,479,394		3,852,534		3,957,960		7,494,860		9,285,456		10,090,475		74.18	%		72.00	%		71.93	%			5,432,922		6,132,515		6,769,953		3,852,534		3,957,960		3,926,565		9,285,456		10,090,475		10,696,518		72.00	%		71.93	%		73.12	%


Mortgage Loans⁽¹⁾		1,382,442		1,529,701		1,730,106		149,533		459,275		499,452		1,531,975		1,988,976		2,229,558		15.16	%		15.42	%		15.89	%			1,529,701		1,730,106		1,742,092		459,275		499,452		486,527		1,988,976		2,229,558		2,228,619		15.42	%		15.89	%		15.23	%
Consumer Loans⁽¹⁾		476,275		504,940		568,426		600,381		1,118,309		1,141,416		1,076,656		1,623,249		1,709,842		10.66	%		12.58	%		12.18	%			504,940		568,426		613,367		1,118,309		1,141,416		1,089,792		1,623,249		1,709,842		1,703,159		12.58	%		12.18	%		11.64	%

Total		7,874,183		7,467,563		8,431,047		2,229,308		5,430,118		5,598,828		10,103,491		12,897,681		14,029,875		100.00	%		100.00	%		100	%			7,467,563		8,431,047		9,125,412		5,430,118		5,598,828		5,502,884		12,897,681		14,029,875		14,628,296		100	%		100	%		100	%


	As of December 31						As of December 31
	2012		2013		2014		2013		2014		2015
	(in millions of constant Ch$)						(in millions of constant Ch$)
Argentina		7,675		7,401		—		7,401		—		—
Brazil		45,111		39,265		43,064		39,265		43,064		12,961
Canada		—		—		58,426		—		58,426		44,064
Cayman Islands		23,892		8,249		2,296		8,249		2,296		—
Colombia		1,908,520		5,142,110		4,921,473		5,142,110		4,921,473		4,802,783
Costa Rica		8,621		6,478		4,127		6,478		4,127		3,260
Ecuador		—		—		13,194		—		13,194		55
England		7,188		—		—
Gabon												4,529
Japan		9,545		8,548		6,642		8,548		6,642		4,307
Holland		55,999		64,366		84,567		64,366		84,567		83,804
Luxembourg		23,989		—		—
Mexico		39,827		81,729		78,243		81,729		78,243		73,953
Panama		—		10,490		244,440		10,490		244,440		322,414
Peru		9,220		31,060		97,572		31,060		97,572		71,835
Spain		35,840		—		—
Switzerland		39,975		23,450		—		23,450		—		—
United States		13,906		6,972		44,786		6,972		44,786		78,918

Total		2,229,308		5,430,118		5,598,828		5,430,118		5,598,828		5,502,884


			Risk Category										Risk Category
			Debtors in risk individual’s categories from A1 to A5 and debtors in risk group’s categories G1 and G2				Debtors in risk individual’s categories A6, and debtors in risk group’s categories from G3 and G8 and non-performing portfolio						Debtors in risk individual’s categories from A1 to A5 and debtors in risk group’s categories G1 and G2				Debtors in risk individual’s categories A6, and debtors in risk group’s categories from G3 and G8 and non-performing portfolio
			Corporate and Real Estate		Enterprises & Private Banking		Corporate and Real Estate		Enterprises & Private Banking				Corporate and Real Estate		Enterprises & Private Banking		Corporate and Real Estate		Enterprises & Private Banking
Committee	Committee		RD+RI	RT	RD+RI	RT	RD+RI	RT	RD+RI	RT	Committee		RD+RI	RT	RD+RI	RT	RD+RI	RT	RD+RI	RT
Executive		From	4,500 + $1	8,000 + $1	3,500 + $1	6,000 + $1	2,250 + $1	4,000 + $1	1,750 + $1	3,000 + $1		From	4,500 + $1	8,000 + $1	3,500 + $1	6,000 + $1	2,250 + $1	4,000 + $1	1,750 + $1	3,000 + $1
Divisional		Up to	4,500	8,000	3,500	6,000	2,250	4,000	1,750	3,000		Up to	4,500	8,000	3,500	6,000	2,250	4,000	1,750	3,000
Managers + ‘A’		Up to	2,500	4,000	2,000	3,000	1,250	2,000	1,000	1,500		Up to	2,500	4,000	2,000	3,000	1,250	2,000	1,000	1,500
Managers		Up to	1,400	2,100	1,400	2,100	700	1,050	700	1,050		Up to	1,400	2,100	1,400	2,100	700	1,050	700	1,050
Level ‘C1’+‘A’		Up to	1,000	1,500	1,000	1,500	500	750	500	750		Up to	1,000	1,500	1,000	1,500	500	750	500	750
Level A		Up to	700	1,100	700	1,100	350	550	350	550		Up to	700	1,100	700	1,100	350	550	350	550
Risks		Up to	700	1,100	700	1,100	350	550	350	550		Up to	700	1,100	700	1,100	350	550	350	550
Level ‘C1’+‘B’		Up to	500	750	500	750	250	375	250	375		Up to	500	750	500	750	250	375	250	375
Sub managers		Up to	400	600	400	600	200	300	200	300		Up to	400	600	400	600	200	300	200	300
Level “B”		Up to	250	400	250	400	125	200	125	200		Up to	250	400	250	400	125	200	125	200
Level “C1”		Up to	250	400	250	400	125	200	125	200		Up to	250	400	250	400	125	200	125	200


		Approval limits only for debtors with Risk Category A5 or G2, or Special Surveillance Continue as maximum (1)
Level of Necessary Authority		Risk RD+R1		Total Risk (RD+RI+RR)
Level “C” Executive	Up to		100		150
Level “D” Executive	Up to		60		100
Level “E” Executive	Up to		40		60
Level “F” Executive	Up to		20		30
Level “G” Executive	Up to		10		20
Level “H” Executive	Up to		5		10
Level “I” Executive	Up to		3		6
Level “J” Executive	Up to		2		2
Level “K” Executive	Up to		1		1