Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | BANK OF CHILE |
Entity Central Index Key | 0001161125 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 101,017,081,114 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
ASSETS | |||
Cash and due from banks | $ 1,268,860 | $ 880,081 | $ 1,057,393 |
Transactions in the course of collection | 416,946 | 289,194 | 255,968 |
Financial assets held-for-trading | 2,516,387 | 1,745,366 | 1,538,578 |
Cash collateral on securities borrowed and reverse repurchase agreements | 140,267 | 97,289 | 91,641 |
Derivative instruments | 2,182,738 | 1,513,947 | 1,247,941 |
Loans and advances to banks | 2,154,533 | 1,494,384 | 760,021 |
Loans to customers, net | 39,419,340 | 27,341,254 | 24,955,692 |
Financial assets available-for-sale | 1,526,315 | ||
Financial assets at fair value through other comprehensive income | 1,518,441 | 1,053,191 | |
Investments in other companies | 60,917 | 42,252 | 35,771 |
Intangible assets | 123,228 | 85,471 | 72,455 |
Property and equipment | 311,234 | 215,872 | 216,259 |
Investment properties | 20,095 | 13,938 | 14,306 |
Current tax assets | 976 | 677 | 23,032 |
Deferred tax assets, net | 278,028 | 192,840 | 161,265 |
Other assets | 939,577 | 651,691 | 604,800 |
TOTAL ASSETS | 51,351,567 | 35,617,447 | 32,561,437 |
LIABILITIES | |||
Current accounts and other demand deposits. | 13,818,466 | 9,584,488 | 8,915,706 |
Transactions in the course of payments | 64,066 | 44,436 | 29,871 |
Cash collateral on securities lent and repurchase agreements | 438,034 | 303,820 | 195,392 |
Saving accounts and time deposits. | 15,363,573 | 10,656,174 | 10,067,778 |
Derivative instruments | 2,203,336 | 1,528,234 | 1,392,995 |
Borrowings from financial institutions | 2,186,792 | 1,516,759 | 1,195,028 |
Debt issued | 10,777,901 | 7,475,552 | 6,488,975 |
Other financial obligations | 170,147 | 118,014 | 137,163 |
Current tax liabilities | 30,167 | 20,924 | 3,453 |
Provisions | 294,040 | 203,946 | 194,537 |
Employee benefits | 133,476 | 92,579 | 86,628 |
Other liabilities | 574,978 | 398,805 | 308,563 |
TOTAL LIABILITIES | 46,054,976 | 31,943,731 | 29,016,089 |
EQUITY | |||
Capital | 3,487,360 | 2,418,833 | 2,271,401 |
Reserves | 1,239,957 | 860,034 | 809,557 |
Other comprehensive income | (40,851) | (28,334) | 127 |
Retained earnings from previous periods | (2,868) | (1,989) | 64,986 |
Income for the year | 870,290 | 603,633 | 572,080 |
Provisions for minimum dividend | (257,298) | (178,462) | (172,804) |
SUBTOTAL EQUITY | 5,296,590 | 3,673,715 | 3,545,347 |
Non-controlling interest | 1 | 1 | 1 |
TOTAL EQUITY | 5,296,591 | 3,673,716 | 3,545,348 |
TOTAL LIABILITIES AND EQUITY | $ 51,351,567 | $ 35,617,447 | $ 32,561,437 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018CLP ($)$ / shares | Dec. 31, 2017CLP ($)$ / shares | Dec. 31, 2016CLP ($)$ / shares | |
STATEMENT OF INCOME | ||||
Interest revenue | $ 2,884,396 | $ 2,000,617 | $ 1,886,700 | $ 1,916,992 |
Interest expense | (979,873) | (679,640) | (652,005) | (690,259) |
Net interest income | 1,904,523 | 1,320,977 | 1,234,695 | 1,226,733 |
Income from fees and commissions | 728,250 | 505,114 | 471,702 | 441,043 |
Expense from fees and commissions | (209,284) | (145,159) | (124,028) | (119,772) |
Net fees and commissions income | 518,966 | 359,955 | 347,674 | 321,271 |
Net financial operating income | 168,890 | 117,142 | (29,661) | 128,575 |
Foreign exchange transactions, net | 3,894 | 2,701 | 104,875 | 12,405 |
Other operating income | 65,304 | 45,295 | 29,959 | 28,575 |
Total operating revenues | 2,661,577 | 1,846,070 | 1,687,542 | 1,717,559 |
Provisions for loan losses | (362,346) | (251,323) | (221,255) | (259,263) |
OPERATING REVENUES, NET OF PROVISIONS FOR LOAN LOSSES | 2,299,231 | 1,594,747 | 1,466,287 | 1,458,296 |
Personnel expenses | (635,280) | (440,630) | (409,331) | (417,918) |
Administrative expenses | (477,908) | (331,477) | (311,455) | (306,344) |
Depreciation and amortization | (54,326) | (37,681) | (37,536) | (35,575) |
Impairment property and equipment and ECL allowances over financial instruments at fair value through OCI | 1,756 | 1,218 | (166) | (274) |
Other operating expenses | (42,656) | (29,586) | (25,868) | (26,936) |
TOTAL OPERATING EXPENSES | (1,208,414) | (838,156) | (784,356) | (787,047) |
NET OPERATING INCOME | 1,090,817 | 756,591 | 681,931 | 671,249 |
Income attributable to associates | 9,820 | 6,811 | 5,511 | 4,014 |
Income before income taxes | 1,100,637 | 763,402 | 687,442 | 675,263 |
Income taxes | (230,346) | (159,768) | (115,361) | (100,212) |
NET INCOME FOR THE YEAR | 870,291 | 603,634 | 572,081 | 575,051 |
Attributable to: | ||||
Equity holders of the parent | 870,290 | 603,633 | 572,080 | $ 575,051 |
Non-controlling interest | $ 1 | $ 1 | $ 1 | |
Net income per share from continued operations attributable to equity holders of the parent: | ||||
Basic net income per share | (per share) | $ 0.01 | $ 5.98 | $ 5.66 | $ 5.69 |
Diluted net income per share | (per share) | $ 0.01 | $ 5.98 | $ 5.66 | $ 5.69 |
CONSOLIDATED STATEMENTS OF OTHE
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
NET INCOME FOR THE YEAR | $ 870,291 | $ 603,634 | $ 572,081 | $ 575,051 |
Other comprehensive income that will be reclassified subsequently to profit or loss | ||||
Net change in unrealized gains (losses) on financial instruments at fair value through OCI | (20,009) | (13,878) | 4,775 | (52,345) |
Gains and losses on derivatives held as cash flow hedges | (44,612) | (30,943) | 14,979 | (50,481) |
Cumulative translation adjustment | (59) | |||
Subtotal Other comprehensive income before income taxes | (64,621) | (44,821) | 19,754 | (102,885) |
Income tax | 17,463 | 12,112 | (5,120) | 24,690 |
Total other comprehensive income items that will be reclassified subsequently to profit or loss | (47,158) | (32,709) | 14,634 | (78,195) |
Other comprehensive income that will not be reclassified subsequently to profit or loss | ||||
Actuarial gains (losses) | (183) | (127) | 164 | 169 |
Subtotal other comprehensive income before income taxes | (183) | (127) | 164 | 169 |
Income taxes | 50 | 35 | (45) | (45) |
Total other comprehensive income items that will not be reclassified subsequently to profit or loss | (133) | (92) | 119 | 124 |
Subtotal other comprehensive income | (47,291) | (32,801) | 14,753 | (78,071) |
TOTAL CONSOLIDATED COMPREHENSIVE INCOME | 823,000 | 570,833 | 586,834 | 496,980 |
Attributable to: | ||||
Equity holders of the parent | 822,999 | 570,832 | 586,833 | $ 496,980 |
Non-controlling interest | $ 1 | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY $ in Thousands, $ in Millions | Attributable to equity holders of the parentCLP ($) | Paid-in capitalCLP ($) | Other reservesCLP ($) | Reserves from earningsCLP ($) | Unrealized gains (losses) on financial assets at FV through OCICLP ($) | Cumulative translation adjustmentCLP ($) | Cash flows hedge adjustmentCLP ($) | Retained earnings from previous periodsCLP ($) | Income for the yearCLP ($) | Provision for minimum dividendsCLP ($) | Non-controlling interestCLP ($) | USD ($) | CLP ($) |
Equity at beginning of period at Dec. 31, 2015 | $ 3,175,322 | $ 2,041,173 | $ 98,845 | $ 464,426 | $ 45,815 | $ 59 | $ 17,814 | $ 64,986 | $ 609,903 | $ (167,699) | $ 3 | $ 3,175,325 | |
Capitalization of retained earnings | 96,874 | (96,874) | |||||||||||
Retention (release) earnings | 146,375 | (146,375) | |||||||||||
Dividends distributions and paid | (198,955) | (366,654) | 167,699 | (2) | (198,957) | ||||||||
Defined benefit plans adjustment | 124 | 124 | 124 | ||||||||||
Capital increase investment in other companies | 1 | 1 | 1 | ||||||||||
Cumulative translation adjustment | (59) | $ (59) | (59) | ||||||||||
Cash flow hedge adjustment, net | (38,366) | (38,366) | (38,366) | ||||||||||
Valuation adjustment on financial assets at FV through OCI (net) | (39,770) | (39,770) | (39,770) | ||||||||||
Income for the year | 575,051 | 575,051 | 575,051 | ||||||||||
Provision for minimum dividends | (165,675) | (165,675) | (165,675) | ||||||||||
Equity at end of period at Dec. 31, 2016 | 3,307,673 | 2,138,047 | 98,970 | 610,801 | 6,045 | (20,552) | 64,986 | 575,051 | (165,675) | 1 | 3,307,674 | ||
Capitalization of retained earnings | 133,354 | (133,354) | |||||||||||
Retention (release) earnings | 99,663 | (99,663) | |||||||||||
Dividends distributions and paid | (176,359) | (342,034) | 165,675 | (1) | (176,360) | ||||||||
Defined benefit plans adjustment | 123 | 123 | 123 | ||||||||||
Cash flow hedge adjustment, net | 11,158 | 11,158 | 11,158 | ||||||||||
Valuation adjustment on financial assets at FV through OCI (net) | 3,476 | 3,476 | 3,476 | ||||||||||
Income for the year | 572,080 | 572,080 | 1 | 572,081 | |||||||||
Provision for minimum dividends | (172,804) | (172,804) | (172,804) | ||||||||||
Equity at end of period at Dec. 31, 2017 | 3,545,347 | 2,271,401 | 99,093 | 710,464 | 9,521 | (9,394) | 64,986 | 572,080 | (172,804) | 1 | 3,545,348 | ||
Impact of adopting IFRS 9 | (62,726) | 4,249 | (66,975) | (62,726) | |||||||||
Restated balances as of January 1, 2018 | 3,482,621 | 2,271,401 | 99,093 | 710,464 | 13,770 | (9,394) | (1,989) | 572,080 | (172,804) | 1 | 3,482,622 | ||
Capitalization of retained earnings | 147,432 | (147,432) | |||||||||||
Retention (release) earnings | 50,569 | (50,569) | |||||||||||
Dividends distributions and paid | (201,275) | (374,079) | 172,804 | (1) | (201,276) | ||||||||
Defined benefit plans adjustment | (92) | (92) | (92) | ||||||||||
Cash flow hedge adjustment, net | (22,589) | (22,589) | (22,589) | ||||||||||
Valuation adjustment on financial assets at FV through OCI (net) | (10,121) | (10,121) | (10,121) | ||||||||||
Income for the year | 603,633 | 603,633 | 1 | $ 870,291 | 603,634 | ||||||||
Provision for minimum dividends | (178,462) | (178,462) | (178,462) | ||||||||||
Equity at end of period at Dec. 31, 2018 | $ 3,673,715 | $ 2,418,833 | $ 99,001 | $ 761,033 | $ 3,649 | $ (31,983) | $ (1,989) | $ 603,633 | $ (178,462) | $ 1 | $ 5,296,591 | $ 3,673,716 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Income for the year | $ 870,291 | $ 603,634 | $ 572,081 | $ 575,051 |
Items that do not represent cash flows: | ||||
Depreciation and amortization | 54,327 | 37,681 | 37,536 | 35,575 |
Impairment property and equipment and ECL allowances over financial instruments at fair value through OCI | (1,756) | (1,218) | 166 | 274 |
Provision for loan losses | 446,743 | 309,861 | 271,442 | 306,214 |
Provisions for contingent loan risks | 2,943 | 2,041 | (710) | (109) |
Fair value adjustment of financial assets held-for-trading | (956) | (663) | 1,614 | (2,394) |
Provision for deferred income taxes | (6,606) | (4,582) | 14,314 | (35,202) |
Income attributable to associates | (9,820) | (6,811) | (5,511) | (4,019) |
Net gain on sales of assets received in lieu of payment | (5,262) | (3,650) | (1,941) | (2,978) |
Net gain loss on sales of property and equipment | (5,236) | (3,632) | (623) | (183) |
Other charges (credits) to income that do not represent cash flows | (7,194) | (4,990) | 543 | (14,139) |
(Gain) loss from foreign exchanges transactions of other assets and other liabilities | (167,418) | (116,121) | 38,374 | 28,892 |
Other adjustments in interest and fee accruals | 230,829 | 160,103 | (54,294) | (147,643) |
Changes in assets and liabilities that affect operating cash flows: | ||||
(Increase) decrease in loans and advances to banks, net | (1,058,723) | (734,330) | 413,570 | 221,556 |
(Increase) decrease in loans to customers, net | (3,872,605) | (2,686,038) | (462,358) | (1,035,767) |
(Increase) decrease in financial assets held-for-trading, net | (174,693) | (121,167) | (110,935) | (512,572) |
(Increase) decrease in other assets and liabilities | (199,041) | (138,055) | 12,958 | 86,771 |
Increase (decrease) in current accounts and other demand deposits | 963,842 | 668,521 | 594,306 | (4,529) |
Increase (decrease) in payables from repurchase agreements and security lending | 142,114 | 98,570 | (20,474) | 21,725 |
Increase (decrease) in savings accounts and time deposits | 835,967 | 579,827 | (441,174) | 635,156 |
Proceeds from sale of assets received in lieu of payment | 37,881 | 26,274 | 13,679 | 10,860 |
Total cash flows from operating activities | (1,924,373) | (1,334,745) | 872,563 | 162,539 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
(Increase) decrease in financial assets at fair value through other comprehensive income | 669,060 | 464,060 | (1,142,796) | 563,457 |
Purchases of property and equipment | (40,463) | (28,065) | (23,224) | (27,819) |
Proceeds from sales of property and equipment | 5,248 | 3,640 | 652 | 220 |
Purchase of intangible assets | (33,899) | (23,512) | (18,779) | (11,248) |
Investments in other companies | (1,129) | |||
(Increase) decrease in other assets and liabilities | (867) | |||
Dividends received from investments in other companies | 593 | 411 | 484 | 667 |
Total cash flows from investing activities | 600,539 | 416,534 | (1,183,663) | 523,281 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of mortgage financial bonds | (6,326) | (4,388) | (5,818) | (8,552) |
Proceeds from bond issuances | 3,110,708 | 2,157,587 | 1,399,001 | 1,420,037 |
Redemption from bond issuances | (2,070,692) | (1,436,232) | (1,024,758) | (1,281,182) |
Dividends paid | (539,330) | (374,079) | (342,034) | (366,654) |
Increase (decrease) in borrowings from foreign financial institutions | 462,277 | 320,635 | 154,552 | (489,157) |
Increase (decrease) in other financial obligations | (12,620) | (8,753) | (44,938) | 17,467 |
Increase (decrease) in borrowings from Central Bank of Chile | (1) | (1) | (2) | (3) |
Other long-term borrowings | 22 | 15 | 8 | 17,808 |
Payment of other long-term borrowings | (14,149) | (9,814) | (3,349) | (21,359) |
Total cash flows from financing activities | 929,889 | 644,970 | 132,662 | (711,595) |
TOTAL NET POSITIVE (NEGATIVE) CASH FLOWS FOR THE YEAR | (393,945) | (273,241) | (178,438) | (25,775) |
Net effect of exchange rate changes on cash and cash equivalents | 167,418 | 116,121 | (38,374) | (28,892) |
Cash and cash equivalents at beginning of year | 2,073,815 | 1,438,398 | 1,655,210 | 1,709,877 |
Cash and cash equivalents at end of year | 1,847,288 | 1,281,278 | 1,438,398 | 1,655,210 |
Supplemental disclosure of cash flow information: | ||||
Income taxes (paid) received | 29,575 | 20,513 | 13,851 | (18,012) |
Interest received | 2,713,042 | 1,881,766 | 1,928,523 | 1,816,477 |
Interest paid | $ (577,690) | $ (400,686) | $ (753,379) | $ (737,387) |
Company Information
Company Information | 12 Months Ended |
Dec. 31, 2018 | |
Company Information | |
Company Information | 1. Company Information: Banco de Chile, resulting from the merger of Banco Nacional de Chile, Banco Agrícola and Banco de Valparaíso, was formed on October 28, 1893 in the city of Santiago, in the presence of the Notary Eduardo Reyes Lavalle. Banco de Chile (“Banco de Chile” or the “Bank”) is a Corporation organized under the laws of the Republic of Chile, regulated by the Superintendency of Banks and Financial Institutions (“SBIF”). Banco de Chile also complies with the regulations published by the United States Securities and Exchange Commission (“SEC”) from which the Bank is also subject to its supervision since 2001, due to its registration in the New York Stock Exchange ("NYSE") through its American Depositary Receipt ("ADR") program. Banco de Chile offers a broad range of banking services to its customers, ranging from individuals to large corporations. The services are managed in large corporate banking, middle and small corporate banking, personal banking services and in retail groups. Additionally, the Bank offers international as well as treasury banking services. The Bank’s subsidiaries provide other services including securities brokerage, mutual fund management, factoring, insurance brokerage, financial advisory and securitization. Banco de Chile’s legal address is Ahumada 251, Santiago, Chile and its website is www.bancochile.cl. The consolidated financial statements of the Bank for the year ended December 31, 2018 were authorized for issuance in accordance with the directors’ resolution on April 25, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: (a) Basis of preparation: The Bank’s consolidated financial statements for the years 2016, 2017 and 2018 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Bank presents its statement of financial position broadly in order of liquidity. An analysis regarding recovery or settlement within 12 months after the statement of financial position date (current) and more than 12 months after the statement of financial position date (non–current) is presented in note No. 42. The consolidated financial statements comprise the consolidated statement of comprehensive income and the consolidated statements of financial position, changes in equity, cash flows and the related notes. The consolidated financial statements have been prepared under the historical cost convention, except for financial assets at fair value through other comprehensive income, financial assets held for trading measured at fair value through profit or loss and derivative contracts, which have been measured at fair value. The consolidated statement of cash flows shows the changes in cash and cash equivalents arising from operating activities, investing activities and financing activities during the period. (b) Basis of consolidation: The financial statements of Banco de Chile as of and for the years ended December 31, 2017 and 2018 have been consolidated with those of its subsidiaries. The financial statements of the bank’s subsidiaries are prepared for the same reporting year as for Banco de Chile, using consistent accounting policies. (i) Subsidiaries Consolidated financial statements as of December 31, 2017 and 2018 incorporate financial statements of the Bank and its subsidiaries. According IFRS 10 –“Consolidated Financial Statements”, control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee. Specifically the Bank has power over the investee when it has existing rights that give it the ability to direct the relevant activities of the investee. When the Bank has less than a majority of the voting rights of an investee, but these voting rights are enough to have the ability to direct the relevant activities unilaterally, then the Bank has control. The Bank considers all factors and relevant circumstances to evaluate if its voting rights are enough to obtain control, which includes: · The amount of voting rights that the Bank has, related to the amount of voting rights of the other stakeholders. · Potential voting rights maintained by the Bank, other holders of voting rights or other parties. · Rights that emanated from other contractual arrangements. · Any additional circumstance that indicate that the Bank has or does not have the ability to manage the relevant activities when decisions need to be made, including voting behavior patterns in previous shareholders meetings. The financial statements of the subsidiaries are included in the consolidated financial statements from the date control is obtained until the loss of such control. The financial statements have been prepared using uniform accounting policies for similar transactions and other events under equivalent circumstances. The following table details the entities in which the Bank, directly or indirectly – owns a controlling interest and that are therefore consolidated in these financial statements: Interest Owned Direct Indirect Total Functional 2017 2018 2017 2018 2017 2018 RUT Subsidiaries Country Currency % % % % % % 96,767,630-6 Banchile Administradora General de Fondos S.A. Chile Ch$ 99.98 99.98 0.02 0.02 100.00 100.00 96,543,250-7 Banchile Asesoría Financiera S.A. Chile Ch$ 99.96 99.96 — — 99.96 99.96 77,191,070-K Banchile Corredores de Seguros Ltda. Chile Ch$ 99.83 99.83 0.17 0.17 100.00 100.00 96,571,220-8 Banchile Corredores de Bolsa S.A. Chile Ch$ 99.70 99.70 0.30 0.30 100.00 100.00 96,932,010-K Banchile Securitizadora S.A. Chile Ch$ 99.01 99.01 0.99 0.99 100.00 100.00 96,645,790-2 Socofin S.A. Chile Ch$ 99.00 99.00 1.00 1.00 100.00 100.00 Intercompany transactions and balances between the Bank and its subsidiaries and among its subsidiaries have been eliminated for consolidation purposes. Any non-controlling interest is recognized as a separate item within the Bank’s consolidated equity. (ii) Investment in Associates and Joint Ventures Associates An associate is an entity over which the Bank has significant influence on its operating and financial management policy decisions, without having control over the associate. Significant influence is generally presumed when the Bank holds between 20% and 50% of the voting rights. Other factors considered when determining whether the Bank has significant influence over another entity are the representation on the Board of Directors and the existence of material intercompany transactions. The existence of these factors could determine the existence of significant influence over an entity despite the Bank holding a participation of less than 20% of the entity’s voting rights. According to the equity method, the Bank’s investments in an associate are initially recorded at cost, and subsequently increased (or decreased) to reflect both the Bank’s pro rata share of the post-acquisition net income (or loss) of the associate and other movements directly recognized in the associate’s equity. Goodwill arising from the acquisition of an associate is included in the carrying value of the investment (net of any accumulated impairment loss). Since goodwill is not reported separately, an associate is not tested individually for impairment. Rather, the entire investment is tested for impairment as described below. After the application of the equity method, the Bank determines whether it is necessary to recognize impairment loss on the Bank’s investment in an associate. The Bank determines at each reporting date whether there is objective evidence, considering information from internal and external sources, that the investment in the associate is impaired. If this is the case, the Bank calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in its income statement under the line “Income attributable to associates”. Joint Ventures Joint Ventures are joint arrangements whereby the parties to the agreement that have joint control over the arrangement have rights to the net assets covered by the arrangement. Joint control exists only when decisions about the relevant activities covered by the arrangement require the unanimous consent of the parties sharing control in the agreement. According to IFRS 11, an entity shall determine the type of joint arrangement: “Joint Operation” or “Joint Venture”. For investments defined as a “Joint Operation”, the assets, liabilities, income and expenses are recognized by the participation in the joint operation. Investments defined as a “Joint Venture” will be registered according to the equity method. Investments that, for their characteristics, are defined as “Joint Ventures” include the following: · Artikos Chile S.A. · Servipag Ltda. (iii) Structured entities Special purpose entities (“SPEs”) are generally created to comply with a specific and well-defined objective, such as securitizing specific assets or carrying out a specific loan transaction. An SPE is consolidated if, based on an assessment of its relationship with the Bank and the risks and benefits over the SPE, the Bank concludes that it has control of the SPE. As of December 31, 2017 and 2018, the Bank does not control and therefore does not consolidate any SPEs. (iv) Asset management services investments and mutual funds The Bank, through its subsidiary Banchile Administradora General de Fondos S.A., manages assets through investment and mutual funds and other investment products on behalf of investors. According to IFRS 10, for consolidation purposes, it is necessary to evaluate the role of the Bank and its subsidiaries in the funds that it manages, determining its role of Agent or Principal. When assessing whether an investor controls an investee, an investor with decision-making rights must determine whether it acts as a Principal or as an Agent for other parties. A number of factors are considered in making this assessment, including the following: · Scope to make decision over the investee. · Rights held by other parties. · Remuneration according to compensation arrangements. · Exposition of the decision maker to the variability of returns from other interests that keeps the investee. The Bank and its subsidiaries manage investments and mutual funds on behalf and for the benefit of investors, acting only as an Agent in this relationship. Under this category, and as per the aforementioned rule, these funds are not controlled and therefore not consolidated by the Bank or its subsidiaries. (c) Non-controlling interest: Non-controlling interest represents the share of losses, income and net assets that the Bank does not control, either directly or indirectly. It is presented as a separate item in the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position. (d) Going Concern: The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Bank’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. (e) Use of estimates and judgment: Preparing financial statements requires management to make judgments, estimations and assumptions that affect the application of accounting policies and the valuation of assets, liabilities, income and expenses presented. Actual results could differ from these estimated amounts. Relevant estimates and assumptions are reviewed regularly by senior management in order to quantify certain assets, liabilities, income, expenses and uncertainties. Revisions to accounting estimates are recognized in the year in which the estimate is revised and for any future period that is affected. Some accounting matters particularly involve uncertainties and therefore require a considerable degree of estimation and critical judgment when applying accounting policies. Details on the use of estimates and judgment and their effect on the amounts recognized in the financial statements are included in the following notes: · Impairment of loans (Notes No. 11, No. 12 and No. 34) · Impairment of instruments at fair value through OCI (Note No. 13) · Impairment of contingent loan risks (Note No. 25) · Useful lives of intangible assets, property and equipment and investment properties (Notes No. 15, No. 16 and No. 17) · Goodwill valuation (Note No. 15) · Deferred taxes and income taxes (Note No. 18) · Provisions (Note No. 25) · Employee benefits (Note No. 26) · Commitments and contingencies (Note No. 28) · Fair value of financial assets and liabilities (Note No. 41) (f) Financial asset and liability valuation criteria: Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the Statement of Financial Position and the Comprehensive Income. This involves selecting the particular basis or method of measurement. These bases or methods include the following: (i) The Bank and its subsidiaries recognize loans to customers, trading and investment securities, deposits, debt issued and subordinated liabilities on the date they originated. Purchases and sales of financial assets performed on a regular basis are recognized as of the trade date on which the Bank committed to purchase or sell the asset. All other assets and liabilities (including assets and liabilities at fair value through profit or loss) are initially recognized as of the trade date on which the Bank becomes a party to the contractual provisions of the instrument. Financial assets or liabilities are initially recognized at fair value plus transaction costs directly attributable to their purchase or issuance, except in the case of financial assets and financial liabilities recorded at fair value through profit or loss (FVPL). (ii) Derecognition of financial assets and liabilities The Bank and its subsidiaries derecognize a financial asset (or where applicable, part of a financial asset) from its Statement of Financial Position when the contractual rights to the cash flows of the financial asset have expired or when the contractual rights to receive the cash flows of the financial asset are transferred during a transaction in which all ownership risks and rewards of the financial asset are transferred. Any portion of transferred financial assets that is created or retained by the Bank is recognized as a separate asset or liability. When the Bank transfers a financial asset, it assesses to what extent it has retained the risks and rewards of ownership. In this case: (a) If substantially all risks and rewards of ownership of the financial asset have been transferred, it is derecognized and any rights or obligations created or retained upon transfer are recognized separately as assets or liabilities. (b) If substantially all risks and rewards of ownership of the financial asset have been retained, the Bank continues to recognize it. (c) If substantially all risks and rewards of ownership of the financial asset are neither transferred nor retained, the Bank will determine if it has retained control of the financial asset. In this case: (c.i) If it has not retained control, the financial asset will be derecognized and any rights or obligations created or retained upon transfer will be recognized separately as assets or liabilities. (c.ii) If the entity has retained control, it will continue to recognize the financial asset to the extent of its continuing involvement in the financial asset. A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. If an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of the existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the income statement. (iii) Offsetting Financial assets and liabilities are offset and the net amount is reported in the Statement of Financial Position if, and only if, the Bank has the legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realize an asset and settle the liability simultaneously. Income and expenses are shown net only if accounting standards allow such treatment, or in the case of gains and losses arising from a group of similar transactions, such as the Bank’s trading activities. (iv) Measurement categories of financial assets and liabilities From January 1, 2018, the Bank classifies all of its financial assets based on the business model for managing these assets and each asset’s contractual terms, measured at either, amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL). The Bank classifies and measures its trading portfolio at FVPL as explained in Note No. 2 (g) (ii). The Bank may designate financial instruments at FVPL, if such designation eliminates or significantly reduces measurement or recognition inconsistencies. Before January 1, 2018, the Bank classified its financial assets as loans and receivables (amortized cost), FVPL or available-for-sale. Financial liabilities, other than loan commitments and financial guarantees, are measured at amortized cost or at FVPL when they are held for trading and derivative instruments or the fair value designation is applied. Fair value measurements The fair value of a financial instrument is the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The most objective and common fair value is the price that you would pay on an active, transparent and deep market (“quoted price” or “market price”). When available, the Bank estimates the fair value of an instrument using quoted prices in an active market for that instrument. A market is considered active if quoted prices are readily and regularly available and represent actual and regularly occurring market transactions on an arm’s length basis. If a market for a financial instrument is not active, the Bank establishes fair value using a valuation technique. These valuation techniques include the use of recent market transactions between interested and duly informed parties that act in mutual independence conditions, if available, as well as references to the fair value of other instruments that are substantially the same, discounted cash flows and options pricing models. The chosen valuation technique uses the maximum observable market data, relies as little as possible on estimates performed by the Bank, incorporates factors that market participants would consider in setting a price and is consistent with accepted economic methodologies for pricing financial instruments. Inputs into the valuation technique reasonably represent market expectations and include risk and return factors that are inherent in the financial instrument. Periodically, the Bank calibrates the valuation techniques and tests them for validity using prices from observable current market transactions in the same instrument or based on any available observable market data. The best evidence of the fair value of a financial instrument at initial recognition is the transaction price (i.e., the fair value of the consideration given or received) unless the fair value of that instrument is evidenced by a comparison with other observable current market transactions in the same instrument (i.e., without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. When the transaction price provides the best evidence of fair value at initial recognition, the financial instrument is initially measured at the transaction price and any difference between this price and the value initially obtained from a valuation model is subsequently recognized in income. Fair value estimates obtained from models are adjusted for any other factors, such as model uncertainties, to the extent that the Bank believes that a third-party market participant would take them into account in pricing a transaction. The Bank’s fair value disclosures are included in Note No. 41. (g) (i) Before January 1, 2018, due from banks and loans to customers include non–derivative financial assets with fixed or determinable payments, such as domestic banks and foreign banks including the Chilean Central Bank. After initial measurement, amounts of due from banks and loans to customers are subsequently measured at amortized cost using the effective interest rate (EIR), less allowances for impairment. Amortized cost was calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the EIR. The amortization was included in interest revenue in the income statement. The losses arising from impairment were recognized in the income statement in provisions for loan losses. From January 1, 2018, the Bank continues measuring due from banks, loans to customers and other financial investments at amortized cost as long as the following conditions are met: · The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows from them. · The contractual terms of the financial asset give rise on specified dates on which cash flows are to be received and such cash flows are solely payments of principal and interest (SPPI) on the principal amount outstanding. (ii) Financial assets held-for-trading are securities acquired in order to generate profits from short-term price fluctuations or as a result of brokerage activities, or which are part of a portfolio on which a short-term profit-generating pattern exists. This item includes mainly Central Bank bonds and deposits from domestic banks. Financial assets held-for-trading are stated at their fair market value as of the Statement of Financial Position date. Gains or losses from their fair market value adjustments, as well as gains or losses from trading activities, are included in “Net financial operating income” in the Consolidated Statement of Comprehensive Income. Dividends, interest and indexations are reported as “Net financial operating income” in the Consolidated Statement of Comprehensive Income. All purchases and sales of financial assets held-for-trading that must be executed within the period established by market regulations or conventions are recorded using the trade date, which is the date on which the purchase or sale of the asset is committed. Any other purchase or sale is treated as a derivative (forward) until settlement occurs. (iii) These instruments largely comprise assets that had previously been classified as financial investments available-for-sale under IAS 39. (iii.1) The Bank applies the new category under IFRS 9 of debt instruments measured through FVOCI when both of the following conditions are met: · The instrument is held within a business model whose, objective is to collect contractual cash flows and sell financial assets. · The contractual terms of the financial asset meet the SPPI test (described above). FVOCI debt instruments are measured at fair value with gains and losses arising due to changes in fair value are recognized in Other Comprehensive Income (OCI). Interest income and foreign exchange gains and losses are recognized in profit or loss. The Expected Credit Losses (ECL), which are measured and recorded pursuant to the IFRS 9 adoption, recorded for debt instruments measured at FVOCI does not reduce the carrying amounts of these financial assets, as these remains at fair value in the statement of financial position, but instead, an amount equal to the allowance that would result from the impairment is recognized in OCI, with a corresponding charge to profit or loss. The accumulated loss recognized in OCI is recycled to profit or loss upon the derecognition of the asset. Where the Bank holds more than one investment in the same security, they are deemed to be disposed of on a first–in first–out basis. On derecognition, cumulative gains or losses previously recognized in OCI are reclassified from OCI to profit or loss. (iii.2) Upon initial recognition, the Bank occasionally elects to classify irrevocably some of its equity investments as equity instruments at FVOCI when they meet the definition of definition of Equity under IAS 32 “Financial Instruments: Presentation” and are not held for trading. Such classification is determined on an instrument-by instrument basis. Gains and losses on these equity instruments are never recycled to profit or loss. Dividends are recognized in profit or loss as other operating income. Equity instruments at FVOCI are not subject to an impairment assessment. (iv) Accounts receivable relating to leasing contracts, included under the caption “Loans to customers”, correspond to periodic rent installments of contracts, which meet the definition to be classified as financial leases and are presented at their nominal value net of unearned interest as of each year-end. (v) This corresponds to invoices and other commercial instruments representative of credit, with or without recourse, received in factoring operations and which are registered to book value plus interest and adjustments until maturity. In those cases where the transfer of these instruments was made without responsibility of the grantor, the Bank assumes the default risk. (vi) In its ordinary course of business the Bank gives financial guarantees consisting of letters of credit, guarantees and acceptances. Financial guarantees are initially recognized in the financial statements at fair value being the premium received. Subsequent to initial recognition, the Bank’s liability is measured at the higher of the amount originally recognized less, when appropriate, cumulative amortization recognized in the income statement and the best estimate of expenditure required settling the financial obligation arising as the result of the guarantee. The premium received is recognized in the income statement in “Income from Fees and Commissions” on a straight line basis over the guarantee period. (vii) (vii.1) (a) The Bank assessed whether there was objective evidence that a loan asset or a group of loans were impaired. A loan asset or a group of loans were considered impaired, and impairment losses were incurred if: a. There was objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the asset and up to the balance sheet date (“a loss event”); b. The loss event had an impact on the estimated future cash flows of the financial asset or the group of financial assets; and, c. A reliable estimate of the loss amount could have been made. The Bank first assessed whether objective evidence of impairment existed for loans that were individually significant. It then assessed collectively for loans that were not individually significant and loans which were significant but for which no objective evidence of impairment was observed as a result of the individual assessment. (a.i) Allowances for individual evaluations: An individual analysis of debtors was applied to individuals and companies that were of such significance with respect to size, complexity or level of exposure to the Bank, that they must have been analyzed in detail. To allow management to determine whether a loss event had been occurred on an individual basis, all significant counterparty relationships were reviewed periodically. This evaluation considered current information and events related to the counterparty, such as whether the counterparty were experiencing significant financial difficulty or in breach of contract as, for example, default or delinquency in interest or principal payments. The individual evaluation required assigning a risk category to each debtor and its respective loans. This risk category should consider the following factors: industry or sector, group considerations and management, financial situation, payment behavior and payment capacity. If there was evidence of impairment leading to an impairment loss for an individual counterparty relationship, then the amount of the loss was determined as the difference between the carrying amount of the loan(s), including accrued interest, and the present value of expected future cash flows discounted at the loan’s original effective interest rate or the effective interest rate established upon reclassification to loans, including cash flows that may result from foreclosure less costs for obtaining and selling the collateral. The carrying amount of the loans was reduced by the use of an allowance account and the amount of the loss is recognized in the income statements a component of the provision for credit losses. (a.ii) Allowances for group evaluations: The collective assessment of impairment were used primarily to establish an allowance amount relating to loans that were either individually significant but for which there was no objective evidence of impairment, or were not individually significant but for which there was, on a portfolio basis, a loss amount that was probable of having occurred and was reasonably estimable. The loss amount had two components. The first component was an allowance amount representing the incurred losses on the portfolio of smaller balance homogeneous loans, which were loans to individuals and small business customers of the private and retail business. The loans were grouped according to similar credit risk characteristics and the allowance for each group is determined using statistical models based on historical experience. The second component represents an estimate of incurred losses inherent in the group of loans that had not yet been individually identified or measured as part of the smaller-balance homogeneous loans. Loans that were found not to be impaired when evaluated on an individual basis were included in the scope of this component of the allowance. Once a loan was identified as impaired, although the accrual of interest in accordance with the contractual terms of the loan was discontinued, the accretion of the net present value of the written down amount of the loan due to the passage of time was recognized as interest income based on the original effective interest rate of the loan. (b) Financial assets were reviewed throughout each year, and especially at each reporting date, to determine whether there is objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the asset, and to determine whether the loss event had had an impact on the estimated future cash flows of the financial asset that could have been reliably calculated. An impairment loss for financial assets (different to loans to customers) recorded at amortized cost was 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. An impairment loss for available-for-sale financial assets was calculated using its fair value, considering fair value changes already recognized in other comprehensive income. In the case of equity investments classified as available-for-sale financial assets, objective evidence included a significant or prolonged decline in the fair value of the investment below cost. In the case of debt securities classified as available-for-sale and held-to-maturity financial assets, the Bank assessed whether there existed objective evidence for impairment based on the same criteria as for loans. If there was evidence of impairment, any amount previously recognized in equity, under net gains (losses) not recognized in the income statement, was removed from equity and recognized in the income statement for the period, under net gains (losses) on financial assets available for sale. This amount was determined as the difference between the acquisition cost (net of any principal repayments and amortization) and current fair value of the asset less any impairment loss on that investment previously recognized in the income statement. When the fair value of the available-for-sale debt security recovered to at least amortized cost it was no longer considered impaired and subsequent changes in fair value were reported in equity. Individually significant financial assets were individually examined to determine impairment. Remaining financial assets were collectively evaluated in groups that shared similar credit risk characteristics. Both criteria are similar as those described in Note 2(vii.1)(a) Loans to customers to determine impairment individually and group. All impairment losses were recognized in the income statement. Any cumulative loss related to available-forsale financial assets recognized previously in equity was transferred to the income statement. An impairment loss was reversed if, in a subsequent period, the fair value of the debt instrument classified as available for sale increased and the increase could be objectively related to an event occurring after the impairment loss was recognized in profit or loss. The amount of the reversal was recognized in profit or loss up to the amount previously recognized as impairment. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available for sale were not reversed through profit or loss. (vii.2) Overview of the principles of Expected Credit Loss (ECL) [From January 1, 2018] With the publication in July 2014 of International Financial Reporting Standard 9 – Financial Instruments (IFRS 9), promulgated by the International Accounting Standards Board (IASB), that came into effect as of January 1, 2018, the calculation of provisions will include not only |
New and amended standards and i
New and amended standards and interpretations | 12 Months Ended |
Dec. 31, 2018 | |
New and amended standards and interpretations | |
New and amended standards and interpretations | 3. New and amended standards and interpretations: Amendments that resulted from improvements to IFRS to the following standards did not have any impact on the accounting policies, financial position or performance of the Bank: IAS 28 Investments in Associates and Joint Ventures: Amendments to clarify guidance and wording, or to correct for relatively minor unintended consequences, conflicts or oversights. IAS 40 Investment Property : Amendment to clarify transfers of property to, or from, investment property. IFRIC 22 Foreign Currency Transactions and Advance Consideration: Amendment to clarify the accounting for transactions that include the receipt or payment of advance consideration in a foreign currency. |
Changes in Accounting policies
Changes in Accounting policies and Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Changes in Accounting policies and Disclosures | |
Changes in Accounting policies and Disclosures | 4. Changes in Accounting policies and Disclosures: The accounting policies adopted in the preparation of these Consolidated Financial Statements are consistent with those used in the preparation of the Bank's consolidated annual financial statements for the year ended December 31, 2017, except for the adoption of new regulations in effect as of January 1, 2018 as described below. The Bank adopted, IFRS 15 “Revenue from contracts with customers”, there being no equity effects resulting from its application, therefore, the information disclosed as of December 31, 2017 it has not been restated in these financial statements. As of the year ended December 31, 2018, the bonus that the Bank negotiated with its employees in collective bargaining process carried out in 2018 was recorded in the "Other assets" account of the line item "Expenses paid in advance" and is amortized with a charge to profit or loss within the term of the collective bargaining agreement and according to the employees permanence at the date of issuance of the financial statements. Before the change, the payment of this benefit directly affected the result for the year. This modification was made because the Bank observed that this disbursement complies with the definition to be considered a right that has the potential to produce economic benefits under the Conceptual Framework (modified) of the IFRS. The Bank adopted, IFRS 9 “Financial Instruments”, which replaced the guidance in IAS 39. IFRS 9 combines all three aspects of the accounting for financial instruments: (i) the classification and measurement of financial assets and financial liabilities, (ii) the impairment of financial assets, and (iii) general hedge accounting. In addition, amendments were made to IFRS 7 Financial Instruments: Disclosures, which have been adopted at the same time as IFRS 9. The equity effects as a result of the application of IFRS 9 are attributable to the calculation of allowance for credit losses under the new impairment requirements. There were also differences in the classification of financial assets when compared to the classification under IAS 39 with no significant equity effects. (See Note No. 5 Transition disclosures). During the year ended December 31, 2018, there have been no others accounting changes that may significantly affect these Consolidated Financial Statements. |
Transition disclosures
Transition disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Transition disclosures | |
Transition disclosures | 5. Transition disclosures: During the period ended December 31, 2018, Banco de Chile adopted IFRS 9 “Financial Instruments”, which replaces IAS 39 “Financial Instrument: Recognition and Measurement”. The following information provides a detailed overview of the IFRS 9 transition effects as of January 1, 2018, including the reclassification of IAS 39 carrying amount to the new categories applicable under IFRS 9 and the recognition of the effect of replacing IAS 39’s incurred credit loss calculation with IFRS 9’s ECLs calculation. (a) As of December 31, 2017 As of January 1, 2018 IAS 39 IFRS 9 Measurement Remeasurement Measurement Category Amount Reclassification ECL Amount Category MCh$ Ref MCh$ Ref MCh$ MCh$ ASSETS Cash and due from banks L&R 1,057,393 — — 1,057,393 AC Transactions in the course of collection L&R 255,968 — — 255,968 AC Financial assets held-for-trading FVPL 1,538,578 78,069 — 1,616,647 FVPL From: Other assets A 78,069 — Cash collateral on securities borrowed and reverse repurchase agreements L&R 91,641 — — 91,641 AC Derivative instruments FVPL 1,247,941 — — 1,247,941 FVPL Loans and advance to banks L&R 760,021 D (508) 759,513 AC Loans to customers, net L&R 24,955,692 — D (73,817) 24,881,875 AC Financial assets available-for-sale L&R 1,526,315 (1,526,315) — N/A To: Financial instruments at fair value through OCI - Equity B (10,252) — To: Financial instruments at fair value through OCI- Debt C (1,516,063) — Financial assets at fair value through OCI N/A 1,526,315 — 1,526,315 FVOCI From: Financial assets available-for-sale - Equity B 10,252 — From: Financial assets available-for-sale - Debt C 1,516,063 — Investments in other companies 35,771 — — 35,771 Intangible assets 72,455 — — 72,455 Property and equipment 216,259 — — 216,259 Investments properties 14,306 — — 14,306 Current tax assets 23,032 — — 23,032 Deferred tax assets, net 161,265 — E 23,200 184,465 Other assets 604,800 (78,069) — 526,731 To: Financial assets held-for-trading A (78,069) — TOTAL ASSETS 32,561,437 — (51,125) 32,510,312 AC L&R FVPL FVOCI As of December 31, 2017 As of January 1, 2018 IAS 39 IFRS 9 Measurement Remeasurement Measurement Category Amount Reclassification ECL Amount Category MCh$ Ref MCh$ Ref MCh$ MCh$ LIABILITIES Current accounts and other demand deposits AC 8,915,706 — — 8,915,706 AC Transactions in the course of payments AC 29,871 — — 29,871 AC Cash collateral on securities lent and repurchase agreements AC 195,392 — — 195,392 AC Saving accounts and time deposits AC 10,067,778 — — 10,067,778 AC Derivate instruments FVPL 1,392,995 — — 1,392,995 FVPL Borrowings from financial institutions AC 1,195,028 — — 1,195,028 AC Debt issued AC 6,488,975 — — 6,488,975 AC Other financial obligations AC 137,163 — — 137,163 AC Current tax liabilities 3,453 — — 3,453 Provisions 194,537 F 11,374 D 11,601 217,512 Employee benefits 86,628 — — 86,628 Other liabilities 308,563 F (11,374) — 297,189 TOTAL LIABILITIES 29,016,089 — 11,601 29,027,690 EQUITY Attributable to equity holders of the parent: Capital 2,271,401 — — 2,271,401 Reserves 809,557 — — 809,557 Other comprehensive income 127 G 4,249 — 4,376 Retained earnings: — — Retained earnings from previous periods 64,986 G (4,249) H (62,726) (1,989) Income for the year 572,080 — — 572,080 Less: Provisions for minimum dividend (172,804) — — (172,804) Non-controlling interest 1 — — 1 TOTAL EQUITY 3,545,348 — (62,726) 3,482,622 TOTAL LIABILITIES AND EQUITY 32,561,437 — (51,125) 32,510,312 AC L&R FVPL FVOCI (b) Table Ref Description of classification or remeasurement changes on adoption of IFRS 9 as of January 1, 2018 A To achieve measurement consistency with reclassified instruments that are measured at fair value through Profit or Loss following adoption of IFRS 9, mutual funds classified as "other assets" with a carrying amount of MCh$78,069 have been designated at FVPL and presented as “Financial assets held-for-trading” as of January 1, 2018. B The Bank has elected the option to irrevocably designate its equity instruments available-for-sale as “Financial assets measured at Fair Value through Other Comprehensive Income”. The fair value of these assets was consistent with the value as of January 1, 2018 and no remeasurement gain or loss has been recognized. C Debt instrument with a carrying amount of MCh$1,516,063 as of December 31, 2017 were formerly classified as “Financial assets available-for-sale” and measured at FV under IAS 39. The Bank concluded that these instruments are managed within a business model whose objective is to collect contractual cash flows and sell the financial assets. Accordingly, the Bank has classified these investments as “Financial assets measured at Fair Value through Other Comprehensive Income”. The fair value of these assets was consistent with the value as of 1 January 2018 and no remeasurement gain or loss has been recognized. D Upon adoption of the ECL requirements of IFRS 9, a transition impact of MCh$85,926 was recognized in allowances. The effect was recognized within “Loans to customer” by MCh$73,817, “Loans and advance to banks” by MCh$508 and “Provisions” by MCh$11,601. E Deferred tax assets of MCh$23,200 have been recognized in connection with the adoption and recognition of ECL upon adoption of IFRS 9. More detail of the effect of adopting IFRS 9 on deferred tax assets is set out in the letter (c) immediately below. F Reclassifies provisions for contingent loan risks classified as other liabilities as of December 31, 2017. G An unrealized loss in Other Comprehensive Income of MCh$5,820 has been reclassified from equity to retained earnings related to ECL allowances calculated over the Financial assets FVOCI (refer to footnote C above), with no overall impact on equity attributable to shareholders. Additionally, a tax income of MCh$1,571 was transferred from other comprehensive income to retained earnings related to ECL allowances mentioned above. H The adoption of IFRS 9 has resulted in a reduction to IFRS consolidated equity as of January 1, 2018 of MCh$62,726 net of tax. This effect is comprised of implementation of ECL credit loss methodology of MCh$91,746 on a pre-tax basis. (c) The table below presents the transition effects recognized in Other Comprehensive Income and Retained Earnings upon adoption of IFRS 9. Reserves and retained earnings MCh$ Unrealized gains (losses) on financial assets at FV through OCI Closing balance under IAS 39 (December 31, 2017) 9,521 Recognition of ECL under IFRS 9 for debt financial assets at FVOCI 5,820 Deferred tax in relation to the above (1,571) Opening balance under IFRS 9 (January 1, 2018) 13,770 Retained earnings from previous periods Closing balance under IAS 39 (December 31, 2017) 464,262 Recognition of IFRS 9 ECLs for loans and contingent loan risks (85,926) Recognition of IFRS 9 ECLs for financial assets at FVOCI (5,820) Deferred tax in relation to the above 24,771 Opening balance under IFRS 9 (January 1, 2018) 397,287 Total change in equity due to adopting IFRS 9 (62,726) (d) The table below provides a reconciliation from the IAS 39 allowances / IAS 37 provisions to the IFRS 9 ECL allowances/provisions recognized as of January 1, 2018 upon adoption of IFRS 9. Provision under IAS 39 / IAS 37 ECLs under IFRS 9 at 31 December 2017 Remeasurement at 1 January 2018 MCh$ MCh$ MCh$ Due from banks (264) (508) (772) Loans to Customers Commercial loans (221,229) (181) (221,410) Mortgage loans (32,015) (1,762) (33,777) Consumer loans (242,577) (71,874) (314,451) Subtotal due from banks and loans to customers (496,085) (74,325) (570,410) Financial guarantees (11,205) 7,273 (3,932) Letter of credit for customers (169) 97 (72) Undrawn credit lines — (18,971) (18,971) Subtotal contingent loan risks (11,374) (11,601) (22,975) Debt instruments at fair value through OCI — (5,820) (5,820) Subtotal financial assets at FVOCI — (5,820) (5,820) Total Allowances / Provisions (507,459) (91,746) (599,205) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting | |
Segment Reporting | 6. Segment Reporting: For management purposes, the Bank has organized its operations and commercial strategies into four business segments, which are defined in accordance with the type of products and services offered to target customers. These business segments are currently defined as follows: Retail: This segment focuses on individuals and small and medium-sized companies with annual sales up to UF 70,000, where the product offering focuses primarily on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans. Wholesale: This segment focused on corporate clients and large companies, whose annual revenue exceed UF 70,000, where the product offering focuses primarily on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases. Treasury and money market operations: This segment includes revenue associated with managing the Bank’s balance sheet (currencies, maturities and interest rates) and liquidity, including financial instrument and currency trading on behalf of the Bank itself. Transactions on behalf of customers carried out by the Treasury are reflected in the respective aforementioned segments. These products are highly transaction-focused and include foreign exchange transactions, derivatives and financial instruments in general. Subsidiaries: Corresponds to companies and corporations controlled by the Bank, where income is obtained individually by the respective subsidiary. The companies that comprise this segment are: · Banchile Administradora General de Fondos S.A. · Banchile Asesoría Financiera S.A. · Banchile Corredores de Seguros Ltda. · Banchile Corredores de Bolsa S.A. · Banchile Securitizadora S.A. · Socofin S.A. The financial information used to measure the performance of the Bank’s business segments is not necessarily comparable with similar information from other financial institutions because it is based on internal reporting policies. The accounting policies used to prepare the Bank’s operating segment information are similar to those described in Note No. 2, “Summary of Significant Accounting Policies”. The Bank obtains the majority of its income from: interest, revaluations and fees, discounted the credit cost and expenses. Management is mainly focused on these concepts in its evaluation of segment performance and decision-making regarding goals and allocation of resources for each unit individually. Although the results of the segments reconcile with those of the Bank at total level, this is not necessarily the case for all concepts on an individual basis, since the management is measured and controlled in individual form and additionally applies the following criteria: · The net interest margin of loans and deposits is measured on an individual transaction and individual client basis. For that purposes, it is considered the volume of each operation and its contribution margin, that at the same time corresponds to the difference between effective rate of the client and the internal transfer price established according to terms and currency of each operation. · The internal performance profitability system considers capital allocation in each segment in accordance to the Basel guidelines. · Operating expenses are distributed at each area level. The Bank allocates all of its indirect operating costs to each business segment by utilizing a different cost driver in order to allocate such costs to the specific segment. The Bank did not enter into transactions with any particular customer or third party that collectively generated more than 10% of the Bank’s total income in 2017 and 2018. Taxes are managed at the consolidated level and are not allocated to business segments. As of December 31, 2016 Reclassifications and adjustments to Retail Wholesale Treasury Subsidiaries Subtotal conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 873,669 346,829 4,207 (4,337) 1,220,368 6,365 1,226,733 Net fees and commissions income 170,529 42,202 (2,473) 121,383 331,641 (10,370) 321,271 Other operating income 93,135 33,322 44,754 23,923 195,134 (25,579) 169,555 Total operating revenue 1,137,333 422,353 46,488 140,969 1,747,143 (29,584) (1) 1,717,559 Provisions for loan losses (301,491) (8,243) ― (1) (309,735) 50,472 (2) (259,263) Depreciation and amortization (25,229) (4,912) (172) (2,976) (33,289) (2,286) (3) (35,575) Other operating expenses (504,041) (152,859) (5,596) (104,847) (767,343) 15,871 (4) (751,472) Income attributable to associates 3,078 914 79 442 4,513 (499) 4,014 Income before income taxes 309,650 257,253 40,799 33,587 641,289 33,974 675,263 Income taxes (89,040) (11,172) (5) (100,212) Income after income taxes 552,249 22,802 575,051 Assets 15,198,634 11,526,685 4,121,333 535,727 31,382,379 (208,655) 31,173,724 Current and deferred taxes 288,370 (104,790) 183,580 Total assets 31,670,749 (313,445) (6) 31,357,304 Liabilities 10,234,712 10,277,326 7,880,847 390,453 28,783,338 (733,708) 28,049,630 Current and deferred taxes ― ― ― Total liabilities 28,783,338 (733,708) (7) 28,049,630 Reclassifications and adjustments to conform IFRS (1) The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(12,349). In addition the total effect of IFRS adjustments is MCh$(17,235) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. (2) The total effect relates to IFRS adjustments of MCh$50,472, which mainly stems from differing allowances for loan losses. (3) The total effect relates to IFRS adjustments of MCh$(2,286), which stems from the amortization of intangibles and depreciation of property and equipment acquired through business combinations. (4) The total effect due to the elimination adjustments to conform other operating expenses is MCh$12,349. In addition the total effect of IFRS adjustments is MCh$3,522, which represents reversal of write-offs of assets received in lieu of payments. (5) The total effect relates to IFRS adjustments of MCh$(11,172), which stems from deferred taxes. (6) The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(137,201). In addition the total effect of IFRS adjustments in assets is MCh$(176,244), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection. (7) The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(137,201). In addition the total effect of IFRS adjustments in liabilities is MCh$(596,507), which mainly stems from provision for minimum dividends and differing allowances for loan losses. As of December 31, 2017 Reclassifications and adjustments Retail Wholesale Treasury Subsidiaries Subtotal to conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 930,539 322,431 (21,169) (4,336) 1,227,465 7,230 1,234,695 Net fees and commissions income 184,049 43,443 (4,306) 135,987 359,173 (11,499) 347,674 Other operating income 19,095 34,712 56,328 26,884 137,019 (31,846) 105,173 Total operating revenue 1,133,683 400,586 30,853 158,535 1,723,657 (36,115) (1) 1,687,542 Provisions for loan losses (256,262) 21,415 — (135) (234,982) 13,727 (2) (221,255) Depreciation and amortization (27,669) (4,547) (141) (2,894) (35,251) (2,285) (3) (37,536) Other operating expenses (507,771) (153,360) (5,022) (102,281) (768,434) 21,614 (4) (746,820) Income attributable to associates 4,372 1,026 108 551 6,057 (546) 5,511 Income before income taxes 346,353 265,120 25,798 53,776 691,047 (3,605) 687,442 Income taxes (115,034) (327) (5) (115,361) Income after income taxes 576,013 (3,932) 572,081 Assets 16,099,926 10,558,278 5,469,829 637,860 32,765,893 (388,753) 32,377,140 Current and deferred taxes 290,432 (106,135) 184,297 Total assets 33,056,325 (494,888) (6) 32,561,437 Liabilities 10,380,250 10,272,607 8,815,056 479,244 29,947,157 (934,521) 29,012,636 Current and deferred taxes 3,453 — 3,453 Total liabilities 29,950,610 (934,521) (7) 29,016,089 Reclassifications and adjustments to conform IFRS (1) (2) (3) (4) (5) (6) (7) As of December 31, 2018 Reclassifications and adjustments Retail Wholesale Treasury Subsidiaries Subtotal to conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 969,910 357,712 (2,414) (8,995) 1,316,213 4,764 1,320,977 Net fees and commissions income 184,545 45,905 (4,031) 145,704 372,123 (12,168) 359,955 Other operating income 43,290 59,376 63,929 33,341 199,936 (34,798) 165,138 Total operating revenue 1,197,745 462,993 57,484 170,050 1,888,272 (42,202) (1) 1,846,070 Provisions for loan losses (287,165) 5,637 ― 118 (281,410) 30,087 (2) (251,323) Depreciation and amortization (29,571) (5,008) (91) (3,011) (37,681) ― (37,681) Other operating expenses (561,512) (152,921) (4,693) (105,906) (825,032) 24,557 (3) (800,475) Income attributable to associates 5,450 1,224 119 462 7,255 (444) 6,811 Income before income taxes 324,947 311,925 52,819 61,713 751,404 11,998 763,402 Income taxes (156,531) (3,237) (4) (159,768) Income after income taxes 594,873 8,761 603,634 Assets 16,425,068 10,592,117 8,093,850 925,440 36,036,475 (612,545) 35,423,930 Current and deferred taxes 278,599 (85,082) 193,517 Total assets 36,315,074 (697,627) (5) 35,617,447 Liabilities 10,369,534 9,873,018 11,982,709 764,736 32,989,997 (1,067,190) 31,922,807 Current and deferred taxes 20,924 ― 20,924 Total liabilities 33,010,921 (1,067,190) (6) 31,943,731 Reclassifications and adjustments to conform IFRS (1) The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(14,989). In addition the total effect of IFRS adjustments is MCh$(27,213) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. (2) The total effect relates to IFRS adjustments of MCh$30,087, which mainly stems from differing allowances for loan losses. (3) The total effect due to the elimination adjustments to conform other operating expenses is MCh$14,989. In addition the total effect of IFRS adjustments is MCh$9,568, which mainly represents reversal of write-offs of assets received in lieu of payments. (4) The total effect relates to IFRS adjustments of MCh$(3,237), which stems from deferred taxes. (5) The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(388,615). In addition the total effect of IFRS adjustments in assets is MCh$(309,012), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection. (6) The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(388,615). In addition the total effect of IFRS adjustments in liabilities is MCh$(678,575), which mainly stems from provision for minimum dividends and differing allowances for loan losses. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | 7. Cash and Cash Equivalents: (a) Details of cash and cash equivalents and its reconciliation to the statement of cash flows at each period are as follows: 2017 2018 MCh$ MCh$ Cash and due from banks: Cash (*) 522,869 624,862 Current account with the Central Bank (*) 162,421 121,807 Deposits in other domestic banks 9,922 26,698 Deposits abroad 362,181 106,714 Subtotal - Cash and due from banks 1,057,393 880,081 Transactions in the course of collection 226,097 244,758 Highly liquid financial instruments (**) 78,069 83,807 Repurchase agreements 76,839 72,632 Total cash and cash equivalents 1,438,398 1,281,278 (*) Amounts in cash and Central Bank deposits are mandatory reserve deposits for which the Bank must maintain a minimum specified monthly average balance. (**) It corresponds to negotiation instruments and investment instruments, whose terms do not exceed three months from the date of acquisition. 2017 2018 MCh$ MCh$ Highly liquid financial instruments: Financial Assets Held-for-trading 78,069 83,807 Total 78,069 83,807 (b) Transactions in the course of collection: Transactions in the course of collection are transactions for which the only remaining step is settlement, which will increase or decrease the funds in the Central Bank or in foreign banks, normally occurring within 24 to 48 business hours and are detailed as follows: 2017 2018 MCh$ MCh$ Assets Documents drawn on other banks (clearing) 204,624 210,743 Funds receivable 51,344 78,451 Subtotal transactions in the course of collection 255,968 289,194 Liabilities Funds payable (29,871) (44,436) Subtotal transactions in the course of payment (29,871) (44,436) Total transactions in the course of collection 226,097 244,758 |
Financial Assets Held-for-Tradi
Financial Assets Held-for-Trading | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets Held-for-Trading | |
Financial Assets Held-for-Trading | 8. Financial Assets Held-for-Trading: The details of financial instruments classified as held-for-trading at each period are as follows: 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Central Bank bonds 400,368 24,906 Central Bank promissory notes 662,190 1,410,080 Other instruments issued by the Chilean Government and Central Bank 254,606 88,486 Other instruments issued in Chile Bonds from other domestic companies ― 7,532 Bonds from domestic banks 2,070 20,186 Deposits in domestic banks 218,307 100,226 Other instruments issued in Chile 715 1,663 Instruments issued by foreign institutions Other instruments issued abroad 322 4,446 Mutual fund investments Funds managed by related companies — 87,841 Funds managed by third-party — ― Total 1,538,578 1,745,366 In “Instruments issued by the Chilean Government and Central Bank of Chile” are classified some instruments as sold under resale agreements to customers and financial institutions, by an amount of Ch$115,749 million as of December 31, 2018 (Ch$5,096 million as of December 31, 2017). Repurchase agreements had a 2 days average expiration period in 2018 (7 days average expiration period in 2017). Moreover, under this same item, other financial instruments are maintained as collateral guaranteeing the derivative transactions executed through Comder Contraparte Central S.A. for an amount of Ch$34,456 million as of December 31, 2018 (Ch$34,585 million as of December 31, 2017) . “Other instruments issued in Chile” include instruments sold under repurchase agreements with customers and financial instruments amounting to Ch$99,268 million as of December 31, 2018 (Ch$158,731 million as of December 31, 2017). Agreements to repurchase have an average expiration of 10 days as of period-end (7 days in December 2017). Additionally, the Bank holds financial investments in mortgage financial bonds issued by itself in the amount of Ch$11,397 million as of December 31, 2018 (Ch$15,032 million as of December 31, 2017), which are presented as a reduction of the liability line item “Debt issued”. |
Cash collateral on securities a
Cash collateral on securities and reverse repurchase agreements | 12 Months Ended |
Dec. 31, 2018 | |
Cash collateral on securities and reverse repurchase agreements | |
Cash collateral on securities and reverse repurchase agreements | 9. Cash collateral on securities and reverse repurchase agreements: (a) The Bank provides financing to its customers through “Receivables from Repurchase Agreements and Security Borrowing”, in which the financial instrument serves as collateral. As of December 31, 2017 and 2018, the Bank has the following receivables resulting from such transactions: Over 1 month and Over 3 months and Over 1 year and Over 3 years and Up to 1 month up to 3 months up to 12 months up to 3 years up to 5 years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Instruments issued by the Chilean Governments and Central Bank of Chile Central Bank bonds 4,114 — — — — — — — — — — — 4,114 — Central Bank promissory notes — 742 — — — — — — — — — — — 742 Other instruments issued by the Chilean Government and Central Bank 2,576 — — — — — — — — — — — 2,576 — Subtotal 6,690 742 — — — — — — — — — — 6,690 742 Other Instruments issued in Chile Deposit promissory notes from domestic banks — — — — — — — — — — — — — — Mortgage bonds from domestic banks — — — — — — — — — — — — — — Bonds from domestic banks — 367 — — — — — — — — — — — 367 Deposits in domestic banks 13,297 2,053 — — — — — — — — — — 13,297 2,053 Bonds from other Chilean companies — — — — — — — — — — — — — — Other instruments issued in Chile 47,357 70,334 19,207 16,918 5,090 6,875 — — — — — — 71,654 94,127 Subtotal 60,654 72,754 19,207 16,918 5,090 6,875 — — — — — — 84,951 96,547 Instruments issued by foreign institutions Instruments from foreign governments or Central Bank — — — — — — — — — — — — — — Other instruments — — — — — — — — — — — — — — Subtotal — — — — — — — — — — — — — — Total 67,344 73,496 19,207 16,918 5,090 6,875 — — — — — — 91,641 97,289 As part of reverse repurchase and securities borrowing agreements the Bank has received securities that it is allowed to sell or repledge in the absence of default by the owner. As of December 31, 2018 the Bank held securities with a fair value of Ch$95,316 million (Ch$95,665 million in 2017) on such terms. (b) The Bank obtains financing by selling financial instruments and committing to repurchase them at future dates, plus interest at a prefixed rate. As of December 31, 2017 and 2018, the Bank has the following payables resulting from such transactions: Over 1 month and Over 3 months and Over 1 year and Over 3 years and Up to 1 month up to 3 months up to 12 months up to 3 years up to 5 years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Instruments issued by the Chilean Governments and Central Bank of Chile Central Bank bonds 5,169 130,197 — — — — ― — — — — — 5,169 130,197 Central Bank promissory notes 5,095 — — — — — ― — — — — — 5,095 — Other instruments issued by the Chilean Government and Central Bank — — — — — — ― — — — — — — — Subtotal 10,264 130,197 — — — — — — — — — — 10,264 130,197 Other Instruments issued in Chile Deposit promissory notes from domestic banks — — — — — — ― — — — — — — — Mortgage bonds from domestic banks — — — — — — ― — — — — — — — Bonds from domestic banks 2,013 — — — — — ― — — — — — 2,013 — Deposits in domestic banks 114,359 162,167 — 1,448 56,762 5,210 ― — — — — — 171,121 168,825 Bonds from other Chilean companies — — — — — — ― — — — — — — — Other instruments issued in Chile 11,994 4,798 — — — — ― — — — — — 11,994 4,798 Subtotal 128,366 166,965 — 1,448 56,762 5,210 — — — — — — 185,128 173,623 Instruments issued by foreign institutions Instruments from foreign governments or central bank — — — — — — ― — — — — — — — Other instruments issued by foreign — — — — — — ― — — — — — — — Subtotal — — — — — — — — — — — — — — Total 138,630 297,162 — 1,448 56,762 5,210 — — — — — — 195,392 303,820 The carrying amount of securities lent and of “Payables from Repurchase Agreements and Security Lending” as of December 31, 2018 is Ch$298,708 million (Ch$195,437 million in 2017). The counterparty is allowed to sell or repledge those securities in the absence of default by the Bank. |
Derivative Instruments and Acco
Derivative Instruments and Accounting Hedges | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Accounting Hedges | |
Derivative Instruments and Accounting Hedges | 10 . Derivative Instruments and Accounting Hedges: (a) As of December 31, 2017 and 2018, the Bank’s portfolio of derivative instruments is detailed as follows: As of December 31, 2017 Notional amount Fair value contract Asset Liability MCh$ MCh$ MCh$ Derivatives held for hedging of fair value Cross currency swap 13,914 — 3,652 Interest rate swap 78,970 277 1,678 Total derivatives held for hedging purposes 92,884 277 5,330 Derivatives held as cash flow hedges Interest rate swap and cross currency swap 1,148,561 27,572 80,888 Total Derivatives held as cash flow hedges 1,148,561 27,572 80,888 Derivatives held-for-trading purposes Currency forward 29,451,333 506,614 574,931 Interest rate forward 14,000 ― 206 Interest rate swap 55,617,104 243,931 236,954 Cross currency swap 11,281,240 466,192 490,811 Call currency options 153,776 514 472 Put currency options 145,873 2,841 3,403 Total derivatives held-for-trading purposes 96,663,326 1,220,092 1,306,777 Total 97,904,771 1,247,941 1,392,995 As of December 31, 2018 Notional amount Fair value contract Asset Liability MCh$ MCh$ MCh$ Derivatives held for hedging of fair value Cross currency swap 11,132 — 3,012 Interest rate swap 226,954 1,116 3,152 Total derivatives held for hedging purposes 238,086 1,116 6,164 Derivatives held as cash flow hedges Interest rate swap and cross currency swap 1,137,457 34,298 31,818 Total Derivatives held as cash flow hedges 1,137,457 34,298 31,818 Derivatives held-for-trading purposes Currency forward 35,690,464 735,444 631,089 Interest rate forward ― ― ― Interest rate swap 72,330,827 287,611 284,840 Cross currency swap 13,982,890 450,519 569,868 Call currency options 229,175 4,839 2,921 Put currency options 192,553 120 1,534 Total derivatives held-for-trading purposes 122,425,909 1,478,533 1,490,252 Total 123,801,452 1,513,947 1,528,234 (b) Fair Value Hedges (notional): The Bank uses cross-currency swaps and interest rate swaps to hedge its exposure to changes in the fair value of the hedged elements attributable to interest rates. The aforementioned hedge instruments change the effective cost of long-term issuances from a fixed interest rate to a variable interest rate, decreasing the duration and modifying the sensitivity to the shortest segments of the curve. Below is a detail of the hedged elements and hedge instruments under fair value hedges as of December 31, 2017 and 2018: As of December 31, 2017 2018 MCh$ MCh$ Notional Amounts Hedged element Commercial loans 13,914 11,132 Corporate bonds 78,970 226,954 Hedge instrument Cross currency swap 13,914 11,132 Interest rate swap 78,970 226,954 (c) Cash flow Hedges: (c.1) The Bank uses cross currency swaps to hedge the risk from variability of cash flows attributable to changes in the interest rates and foreign exchange of borrowings from banks and bonds issued abroad in US dollars, Hong Kong dollars, Swiss franc, Japanese yen and Euros. The cash flows of the cross currency swaps equal the cash flows of the hedged items, which modify uncertain cash flows to known cash flows derived from a fixed interest rate. Additionally, these cross currency swap contracts used to hedge the risk from variability of the Unidad de Fomento (CLF) in assets flows denominated in CLF until a nominal amount equal to the portion notional of the hedging instrument CLF, whose readjustment daily impact the item “interest revenue” of the financial statements. (c.2) Below are the cash flows of borrowings from banks and bonds issued abroad, the objects of these hedges and the cash flows of the asset part of the derivative: Over 1 month Over 3 months Over 1 year Over 3 years and up to 3 and up to 12 and up to 3 and up to 5 Up to 1 month months months years years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Hedge element Outflows: Corporate Bond EUR — — — — (1,246) (1,338) (2,491) (2,675) (2,491) (2,675) (82,348) (87,097) (88,576) (93,785) Corporate Bond HKD — — — — (11,052) (66,378) (68,634) (21,601) (19,202) (83,608) (298,776) (263,206) (397,664) (434,793) Corporate Bond CHF — — (986) (89,256) (161,529) (125,993) (192,519) (1,450) (474) (82,552) (95,174) (106,050) (450,682) (405,301) Corporate Bond USD — — — — — (1,476) — (2,952) — (2,952) — (42,060) — (49,440) Obligation USD (212) (870) (235) (86) (93,173) (49,401) (43,385) (105,622) — — — — (137,005) (155,979) Corporate Bond JPY — — (292) (49,362) (1,150) (1,072) (72,098) (33,487) (28,886) (32,882) (63,002) (71,830) (165,428) (188,633) Hedge instrument Inflows: Cross Currency Swap EUR — — — — 1,246 1,338 2,491 2,675 2,491 2,675 82,348 87,097 88,576 93,785 Cross Currency Swap HKD — — — — 11,052 66,378 68,634 21,601 19,202 83,608 298,776 263,206 397,664 434,793 Cross Currency Swap CHF — — 986 89,256 161,529 125,993 192,519 1,450 474 82,552 95,174 106,050 450,682 405,301 Cross Currency Swap USD — — — — — 1,476 — 2,952 — 2,952 — 42,060 — 49,440 Cross Currency Swap USD 212 870 235 86 93,173 49,401 43,385 105,622 — — — — 137,005 155,979 Cross Currency Swap JPY — — 292 49,362 1,150 1,072 72,098 33,487 28,886 32,882 63,002 71,830 165,428 188,633 Net cash flows — — — — — — — — — — — — — — (c.2) Below are the cash flows of the underlying assets portfolio and the cash flow of the liability part of the derivatives: Over 1 month Over 3 months Over 1 year Over 3 years and up to 3 and up to 12 and up to 3 and up to 5 Up to 1 month months months years years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Hedge element Inflows: Cash flows in CLF — — 2,344 144,458 281,377 237,340 414,764 173,263 59,737 195,590 555,461 542,523 1,313,683 1,293,174 Hedge instrument Outflows: Cross Currency Swap HKD — — — — (9,404) (59,667) (66,188) (16,835) (16,365) (68,362) (285,066) (233,286) (377,023) (378,150) Cross Currency Swap JPY — — (1,061) (50,247) (3,372) (2,740) (85,598) (37,432) (35,063) (35,213) (77,895) (78,611) (202,989) (204,243) Cross Currency Swap USD — — — — (111,077) (47,797) (44,840) (107,893) — (1,243) — (36,888) (155,917) (193,821) Cross Currency Swap CHF — — (1,283) (94,211) (155,767) (125,325) (214,620) (7,482) (4,793) (87,164) (107,870) (108,488) (484,333) (422,670) Cross Currency Swap EUR — — — — (1,757) (1,811) (3,518) (3,621) (3,516) (3,608) (84,630) (85,250) (93,421) (94,290) Net cash flows — — — — — — — — — — — — — — With respect to CLF assets hedged, these are revalued monthly according to the variation of the UF, which is equivalent to monthly reinvestment of the assets until maturity of the relationship hedging. (c.3) The accumulated amount of unrealized gain was a charge to equity for an amount of Ch$30,943 million (a credit to equity for Ch$14,979 million in 2017 and a charge to equity for Ch$50,481 million in 2016) generated from hedging instruments, which has been recorded in equity. The net effect of tax was a charge to equity for Ch$22,589 million in 2018 (a credit to equity for Ch$11,158 million in 2017 and a charge to equity for Ch$38,366 million in 2016) The accumulated balance for this concept net of income tax as of December 31, 2018 corresponds to a debit of equity amounted Ch$31,983 million (a debit of equity for Ch$9,394 million in 2017 and a debit to equity for Ch$20,552 million in 2016). (c.4) The net effect in income of derivatives cash flow hedges was a credit of Ch$ 85,659 million in 2018 (a debit to income for Ch$93,612 million in 2017 and a debit to income for Ch$135,929 million in 2016). (c.5) As of December 31, 2018 and 2017, it not exist inefficiency in cash flow hedge, because both, hedge item and hedge instruments are mirror one of other, it means that all variation of value attributable to rate and revaluation components are netted almost totally. (c.6) As of December 31, 2018 and 2017, the Bank has no hedges of net investments in foreign businesses. |
Loans and Advances to Banks, ne
Loans and Advances to Banks, net | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Advances to Banks, net | |
Loans and Advances to Banks, net | 1 1. Loans and Advances to Banks, net: (a) As of December 31, 2017 and 2018, , loans and advance to banks, net are detailed as follows: 2017 2018 MCh$ MCh$ Domestic Banks Interbank loans 120,017 100,023 Other credits with domestic banks — — Provisions for loans to domestic banks (19) (247) Subtotal 119,998 99,776 Foreign Banks Loans to foreign banks 187,006 239,797 Credits with third countries 61,091 41,872 Chilean export trade banks 41,255 12,873 Provisions for loans to foreign banks (245) (765) Subtotal 289,107 293,777 Central Bank of Chile Central Bank deposits 350,000 1,100,306 Other Central Bank credits 916 525 Subtotal 350,916 1,100,831 Total 760,021 1,494,384 (b) Impairment allowance for due from banks: i. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total Total MCh$ MCh$ MCh$ MCh$ MCh$ Domestic Banks Normal 100,023 — — 100,023 120,017 Substandard — — — — — Non-complying — — — — — Subtotal 100,023 — — 100,023 120,017 Foreign Banks Normal 266,648 27,894 — 294,542 289,352 Substandard — — — — — Non-complying — — — — — Subtotal 266,648 27,894 — 294,542 289,352 Central Bank of Chile Normal 1,100,831 — — 1,100,831 350,916 Substandard — — — — — Non-complying — — — — — Subtotal 1,100,831 — — 1,100,831 350,916 Total 1,467,502 27,894 — 1,495,396 760,285 ii. 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ Gross Carrying amount as at 1 January 2018 760,285 — — 760,285 Net change on gross carrying amount * 746,808 1,376 — 748,184 Transfer to Stage 1 — — — — Transfer to Stage 2 (26,518) 26,518 — — Transfer to Stage 3 — — — — Amounts written off — — — — Foreign exchange adjustments (13,073) — — (13,073) Total 1,467,502 27,894 — 1,495,396 * Net change between assets originated and assets repaid, excluding write offs. iii. 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ ECL allowances as at 1 January 2018 772 — — 772 Net change on ECL allowances * 250 9 — 259 Transfer to Stage 1 — — — — Transfer to Stage 2 (63) 63 — — Transfer to Stage 3 — — — — Impact on year end ECL of exposures transferred between stages during the year ** — 3 — 3 Amounts written off — — — — Foreign exchange adjustments (22) — — (22) Total 937 75 — 1,012 * Net allowances change between assets originated and assets repaid, excluding write offs. ** Represents the change in the year-end ECLs of exposures that were transfered from one stage to another during the year. |
Loans to Customers, net
Loans to Customers, net | 12 Months Ended |
Dec. 31, 2018 | |
Loans to Customers, net | |
Loans to Customers, net | 12. Loans to Customers, net: (a) Loans to Customers: As of December 31, 2017 and 2018, the composition of our portfolio of loans is the following: As of December 31, 2017 As of December 31, 2018 Assets Assets before Allowances before Allowances Allowances established Net assets Allowances established Net assets MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Commercial loans 10,568,435 (160,995) 10,407,440 11,496,591 (175,122) 11,321,469 Foreign trade loans 983,796 (26,582) 957,214 1,313,001 (12,922) 1,300,079 Current account debtors 270,968 (8,177) 262,791 222,218 (9,116) 213,102 Factoring transactions 646,835 (6,327) 640,508 701,005 (4,017) 696,988 Student loans 46,024 (1,319) 44,705 51,919 (1,441) 50,478 Commercial lease transactions (1) 1,381,516 (11,478) 1,370,038 1,571,999 (15,778) 1,556,221 Other loans and accounts receivable 63,244 (6,351) 56,893 81,665 (10,468) 71,197 Subtotal 13,960,818 (221,229) 13,739,589 15,438,398 (228,864) 15,209,534 Mortgage loans Mortgage bonds 29,784 (11) 29,773 21,443 (221) 21,222 Transferable mortgage loans 54,079 (58) 54,021 42,313 (226) 42,087 Other residential real estate mortgage loans 7,384,797 (31,729) 7,353,068 7,978,092 (33,875) 7,944,217 Credits from ANAP 8 — 8 6 ― 6 Other loans and accounts receivable 8,568 (217) 8,351 10,219 (8) 10,211 Subtotal 7,477,236 (32,015) 7,445,221 8,052,073 (34,330) 8,017,743 Consumer loans Consumer loans in installments 2,538,740 (175,293) 2,363,447 2,957,493 (263,542) 2,693,951 Current account debtors 316,678 (10,446) 306,232 312,783 (12,868) 299,915 Credit card debtors 1,157,131 (56,525) 1,100,606 1,165,064 (45,254) 1,119,810 Consumer lease transactions — — — 9 ― 9 Other loans and accounts receivable 910 (313) 597 812 (520) 292 Subtotal 4,013,459 (242,577) 3,770,882 4,436,161 (322,184) 4,113,977 Total 25,451,513 (495,821) 24,955,692 27,926,632 (585,378) 27,341,254 (1) In this item, the Bank finances its customers’ purchases of assets, including real estate and other personal property, through financial lease agreements. As of December 31, 2018, Ch$758,970 million corresponds to financial leases for real estate (Ch$653,575 million in December 2017) and Ch$813,038 million corresponds to financial leases for other assets (Ch$727,941 million in December 2017). (b) i. The credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification as of December 31, 2018 and 2017, is as follows: 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Normal 9,426,420 3,049,264 2,039,954 447,225 — 6,702 — 14,969,565 13,494,128 Substandard — — 94,894 — — — — 94,894 101,253 Non-complying — — — 13,026 120,564 239,734 615 373,939 365,437 Subtotal 9,426,420 3,049,264 2,134,848 460,251 120,564 246,436 615 15,438,398 13,960,818 Mortgage loans Normal — 6,893,619 — 993,085 — 513 — 7,887,217 7,316,969 Non-complying — — — — — 164,856 — 164,856 160,267 Subtotal — 6,893,619 — 993,085 — 165,369 — 8,052,073 7,477,236 Consumer loans Normal — 3,166,290 — 975,898 — 24,579 — 4,166,767 3,760,472 Non-complying — — — — — 269,394 — 269,394 252,987 Subtotal — 3,166,290 — 975,898 — 293,973 — 4,436,161 4,013,459 Total 9,426,420 13,109,173 2,134,848 2,429,234 120,564 705,778 615 27,926,632 25,451,513 ii. Changes in the gross carrying amount as of December 31, 2018 is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Gross Carrying amount as at 1 January 2018 8,446,627 2,506,255 2,228,401 408,337 162,231 208,944 23 13,960,818 Net change on gross carrying amount * 968,288 780,778 (254,542) (105,114) (81,058) (4,607) 592 1,304,337 Transfer to Stage 1 681,223 375,672 (680,838) (346,936) (385) (28,736) — — Transfer to Stage 2 (811,209) (602,997) 822,133 630,963 (10,924) (27,966) — — Transfer to Stage 3 (15,175) (16,665) (32,569) (127,676) 47,744 144,341 — — Amounts written off (150) (67) (11) (468) (5,422) (46,301) — (52,419) Foreign Exchange adjustments 156,816 6,288 52,274 1,145 8,378 761 — 225,662 Total Commercial loans 9,426,420 3,049,264 2,134,848 460,251 120,564 246,436 615 15,438,398 Mortgage loans Gross Carrying amount as at 1 January 2018 — 6,410,939 — 904,826 — 161,471 — 7,477,236 Net change on gross carrying amount * — 734,990 — (115,034) — (38,126) — 581,830 Transfer to Stage 1 — 399,309 — (397,363) — (1,946) — — Transfer to Stage 2 — (651,619) — 671,775 — (20,156) — — Transfer to Stage 3 — — — (71,113) — 71,113 — — Amounts written off — — — (6) — (6,987) — (6,993) Foreign Exchange adjustments — — — — — — — — Total Mortgage loans — 6,893,619 — 993,085 — 165,369 — 8,052,073 Consumer loans Gross Carrying amount as at 1 January 2018 — 2,761,640 — 967,918 — 283,901 — 4,013,459 Net change on gross carrying amount * — 1,007,548 — (416,546) — 60,645 — 651,647 Transfer to Stage 1 — 381,126 — (335,330) — (45,796) — — Transfer to Stage 2 — (978,112) — 1,040,597 — (62,485) — — Transfer to Stage 3 — (9,340) — (281,144) — 290,484 — — Amounts written off — (104) — (627) — (232,780) — (233,511) Foreign Exchange adjustments — 3,532 — 1,030 — 4 — 4,566 Total Consumer loans — 3,166,290 — 975,898 — 293,973 — 4,436,161 * Net change between assets originated and assets repaid, excluding write offs. iii. 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans ECL allowances as at 1 January 2018 16,527 16,663 31,252 20,247 50,014 86,701 6 221,410 Net change on ECL allowances * 9,424 12,463 (5,045) (18,338) (18,715) 31,406 293 11,488 Transfer to Stage 1 4,114 14,807 (3,981) (6,387) (133) (8,420) — — Transfer to Stage 2 (2,600) (11,606) 8,805 15,817 (6,205) (4,211) — — Transfer to Stage 3 (70) (1,189) (4,134) (13,572) 4,204 14,761 — — Impact on year end ECL of exposures transferred between stages during the year ** (2,702) (9,589) 4,512 23,822 5,505 21,568 — 43,116 Amounts written off (150) (67) (11) (468) (5,422) (46,301) — (52,419) Foreign exchange adjustments 337 112 945 46 3,446 383 — 5,269 Total Commercial loans 24,880 21,594 32,343 21,167 32,694 95,887 299 228,864 Mortgage loans ECL allowances as at 1 January 2018 — 740 — 17,351 — 15,686 — 33,777 Net change on ECL allowances * — 299 — (8,772) — 4,417 — (4,056) Transfer to Stage 1 — 892 — (758) — (134) — — Transfer to Stage 2 — (404) — 2,112 — (1,708) — — Transfer to Stage 3 — — — (2,693) — 2,693 — — Impact on year end ECL of exposures transferred between stages during the year ** — (803) — 9,661 — 2,744 — 11,602 Amounts written off — — — (6) — (6,987) — (6,993) Foreign exchange adjustments — — — — — — — — Total Mortgage loans — 724 — 16,895 — 16,711 — 34,330 Consumer loans ECL allowances as at 1 January 2018 — 44,078 — 115,096 — 155,277 — 314,451 Net change on ECL allowances * — 40,305 — (91,527) — 119,321 — 68,099 Transfer to Stage 1 — 26,682 — (9,604) — (17,078) — — Transfer to Stage 2 — (44,301) — 68,448 — (24,147) — — Transfer to Stage 3 — (2,024) — (72,629) — 74,653 — — Impact on year end ECL of exposures transferred between stages during the year ** — (15,379) — 101,086 — 87,371 — 173,078 Amounts written off — (104) — (627) — (232,780) — (233,511) Foreign exchange adjustments — 16 — 49 — 2 — 67 Total Consumer loans — 49,273 — 110,292 — 162,619 — 322,184 * Net allowances change between assets originated and assets repaid, excluding write offs. ** Represents the change in the year-end ECLs of exposures that were transferred from one stage to another during the year. (c) Changes in allowances for loan losses during 2017 and 2018 are as follows: Commercial Mortgage Consumer Total MCh$ MCh$ MCh$ MCh$ Balance as of January 1, 2017 272,274 32,747 249,748 554,769 Charge-offs (58,716) (5,093) (254,981) (318,790) Sales or transfers of credits (11,595) ― ― (11,595) Allowances (released) established, net 19,266 4,361 247,810 271,437 Balance as of December 31, 2017 221,229 32,015 242,577 495,821 Impact adoption IFRS 9 181 1,762 71,874 73,817 Balance as of January 1, 2018 221,410 33,777 314,451 569,638 Charge-offs (52,419) (6,993) (233,511) (292,923) Sales or transfers of credits (958) ― ― (958) Allowances (released) established, net 60,831 7,546 241,244 309,621 Balance as of December 31, 2018 228,864 34,330 322,184 585,378 (d) As of December 31, 2017 and 2018, the Bank’s scheduled cash flows to be received from financial leasing contracts have the following maturities as follows: Total receivable Unearned income Net lease receivable (*) 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Due within one year 461,354 519,186 (54,216) (60,216) 407,138 458,970 Due after 1 year but within 2 years 338,305 383,164 (39,946) (44,066) 298,359 339,098 Due after 2 years but within 3 years 230,920 255,997 (26,136) (28,740) 204,784 227,257 Due after 3 years but within 4 years 146,921 162,310 (17,680) (19,471) 129,241 142,839 Due after 4 years but within 5 years 99,268 108,453 (12,564) (13,992) 86,704 94,461 Due after 5 years 278,607 336,705 (27,315) (33,666) 251,292 303,039 Total 1,555,375 1,765,815 (177,857) (200,151) 1,377,518 1,565,664 (*) The net balance receivable does not include the total overdue portfolio totaling Ch$3,998 million and Ch$6,344 million as of December 31, 2017 and 2018, respectively. This overdue portfolio only reflects the past due portion without considering the remaining outstanding principal and interest. The leasing contracts are related to real estate, industrial machinery, vehicles and transport equipment. The leasing contracts have an average life of between 2 and 15 years. (e) Loans by industry sector: The following table details the Bank’s loan portfolio (before allowances for loans losses) as of December 31, 2017 and 2018 by the customer’s industry sector: Location Chile Abroad Total 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ % MCh$ % Commercial loans: Commerce 2,013,411 2,285,895 21,718 38,430 2,035,129 7.99 2,324,325 8.32 Financial services 1,845,464 2,119,815 6,185 2,784 1,851,649 7.27 2,122,599 7.60 Services 1,964,238 2,109,143 — 348 1,964,238 7.72 2,109,491 7.55 Construction 1,493,373 1,752,237 — — 1,493,373 5.87 1,752,237 6.27 Agriculture and livestock 1,354,069 1,582,520 — — 1,354,069 5.32 1,582,520 5.67 Manufacturing 1,369,293 1,544,862 30,399 34,613 1,399,692 5.50 1,579,475 5.66 Transportation and telecommunications 1,612,930 1,480,773 — 17,369 1,612,930 6.34 1,498,142 5.37 Electricity, gas and water 565,695 461,351 — — 565,695 2.22 461,351 1.65 Mining 422,176 453,549 — — 422,176 1.66 453,549 1.62 Fishing 145,266 156,472 — — 145,266 0.57 156,472 0.56 Other 1,116,601 1,398,237 — — 1,116,601 4.39 1,398,237 5.01 Subtotal 13,902,516 15,344,854 58,302 93,544 13,960,818 54.85 15,438,398 55.28 Residential mortgage loans 7,477,236 8,052,073 — — 7,477,236 29.38 8,052,073 28.83 Consumer loans 4,013,459 4,436,161 — — 4,013,459 15.77 4,436,161 15.89 Total 25,393,211 27,833,088 58,302 93,544 25,451,513 100.00 27,926,632 100.00 (f) Purchase of loan portfolio During 2018, the Bank acquired loan portfolios, whose nominal value amounted to Ch$36,919 million. During 2017, the Bank acquired loan portfolios, whose nominal value amounted to Ch$1,495 million. (g) Sale or transfer of credits from the loans to customers: During 2017 and 2018 the Bank has carried out transactions of sale or transfer of the loan portfolio according to the following: As of December 31, 2017 Carrying Allowances Effect on income amount released Sale price (loss) gain MCh$ MCh$ MCh$ MCh$ Sale of outstanding loans 33,681 (11,595) 24,126 2,040 Sale of write-off loans — — 23 23 Total 33,681 (11,595) 24,149 2,063 As of December 31, 2018 Carrying Allowances Effect on income amount released Sale price (loss) gain MCh$ MCh$ MCh$ MCh$ Sale of outstanding loans 22,567 (958) 21,876 267 Sale of write-off loans — — — — Total 22,567 (958) 21,876 267 (h) Own assets securitizations: During 2017 and 2018 the Bank did not execute securitization transactions involving its own assets. |
Financial Assets Available-for-
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | 13. Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income: As of December 31, 2017 and 2018, financial assets are detailed as follows: 2017 2018 MCh$ MCh$ Assets instruments Available-for Sale 1,526,315 — Debt instruments at fair value through OCI — 1,043,440 Equity instruments valued at fair value through OCI — 9,751 Total 1,526,315 1,053,191 (a) As of December 31, 2017 instruments classified as available-for-sale are detailed as follows: 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Bonds issued by the Chilean Government and Central Bank 204,128 — Promissory notes issued by the Chilean Government and Central Bank 3,346 — Other instruments 148,894 — Other instruments issued in Chile: Equity instruments valued at fair value 9,218 — Mortgage bonds from domestic banks 99,572 — Bonds from domestic banks 5,415 — Deposits from domestic banks 956,733 — Bonds from other Chilean companies 14,969 — Other instruments 83,006 — Instruments issued by foreign institutions: Equity instruments valued at cost 50 — Other instruments issued abroad 984 — Total 1,526,315 — Instruments issued by the Chilean Government and Central Bank include instruments with repurchase agreements sold to clients and financial institutions, totaling Ch$5,177 million as of December 31, 2017. The repurchase agreements have an average maturity of 3 days as of December 31, 2017. Additionally, under the same item, other financial instruments are maintained as collateral guaranteeing the derivative transactions executed through Comder Contraparte Central S.A. for an amount of Ch$31,415 million as of December 31, 2017 . As of December 31, 2017, the portfolio of financial assets available-for-sale includes a net unrealized gain of Ch$9,521 million, recorded in other comprehensive income within equity. (b) (b.1) The breakdown of the balance under the heading “Debt instruments at fair value through OCI” as of December 31, 2017 and 2018 is, as follows: 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Bonds issued by the Chilean Government and Central Bank — 135,145 Promissory notes issued by the Chilean Government and Central Bank — — Other instruments — 29,077 Other instruments issued in Chile: Mortgage bonds from domestic banks — 92,491 Bonds from domestic banks — 5,351 Deposits from domestic banks — 559,108 Bonds from other Chilean companies — 6,599 Other instruments — 107,125 Instruments issued by foreign institutions: Other instruments — 108,544 Total — 1,043,440 Instruments issued by the Chilean Government and Central Bank include instruments with repurchase agreements sold to clients and financial institutions, totaling Ch$6,965 million as of December 31, 2018. The repurchase agreements have an average maturity of 3 days as of December 31, 2018. As of December 31, 2018, the portfolio of financial assets at FVOCI includes a net unrealized gain of Ch$3,649 million, recorded in other comprehensive income within equity. As of December 31, 2018 the impairment for debt instruments at Fair Value through OCI was MCh$4,268. (b.2) The credit ratings of the issuers of debt instruments as of December 31, 2018 and 2017, are as follows: 2017 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total Total MCh$ MCh$ MCh$ MCh$ MCh$ Debt Instrument Investment grade 827,770 — — 827,770 1,433,057 Non-investment grade — — — — — Without rating 215,670 — — 215,670 83,006 Total 1,043,440 — — 1,043,440 1,516,063 (b.3) Analysis of changes in the fair value of debt instrument is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ Gross Carrying amount as at 1 January 2018 1,516,063 — — 1,516,063 Net change on gross carrying amount* (515,343) — — (515,343) Change in fair value 14,162 — — 14,162 Transfer to Stage 1 — — — — Transfer to Stage 2 — — — — Transfer to Stage 3 — — — — Amounts written off — — — — Foreign exchange adjustments 28,558 — — 28,558 Total 1,043,440 — — 1,043,440 * Net allowance change between assets originated and assets repaid, excluding write-offs. (b.4) Analysis of changes in the corresponding ECLs of debt instrument is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ ECL allowances as at 1 January 2018 5,820 — — 5,820 Net change on ECL allowances * (1,978) — — (1,978) Transfer to Stage 1 — — — — Transfer to Stage 2 — — — — Transfer to Stage 3 — — — — Impact on year end ECL of exposures transferred between stages during the year ** — — — — Impact of net re-measurement of year end ECL 258 — — 258 Amounts written off — — — — Foreign exchange adjustments 168 — — 168 Total 4,268 — — 4,268 * Net allowance change between assets originated and assets repaid, excluding write-offs. ** Represents the change in the year-end ECLs of exposures that were transferred from one stage to another during the year. (c) The breakdown of the balance under the heading “Equity instruments at fair value through OCI” as of December 31, 2017 and 2018 is as follows: 2017 2018 MCh$ MCh$ Equity instruments issued in Chile — 8,939 Equity instruments issued by foreign institutions — 812 Total — 9,751 The equity investments issued by foreign institutions represent shares of currency exchange offices and servicing companies that the Bank is obliged to hold in order to benefit from these services. Shares that do not have an active market and their value cannot be reliably measured are presented at cost, the difference between cost and fair value is not expected to be significant. (d) Realized profits and losses are calculated as the proceeds from sales less the cost (specific identification method) of the investments identified as for sale and fair value through OCI. In addition, any unrealized profit or loss previously recorded in other comprehensive income for these investments is reclassified when recorded in the income statements. The gross gains (losses) realized in sale of financial instruments, as of December 31, 2017 and 2018, is recorded in the item “Net financial operating income” (Note No. 32). Change in profits and losses unrealized on the sale of debt instruments for the periods ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Net gain (loss) on financial assets before income tax (1) (52,345) 4,775 (13,878) Tax (expense) benefit 12,575 (1,299) 3,757 Net of tax amount (2) (39,770) 3,476 (10,121) (1) As of December 31, 2016, 2017 and 2018, realized gains reclassified to the income statement line item “Net financial operating income” amounted to Ch$64,011 million, Ch$5,149 million and Ch$400 million, respectively. (2) This amount corresponds to the unrealized gain or loss, net of deferred tax and which are included in “Consolidated Statement of Changes in Equity”. |
Investments in Other Companies
Investments in Other Companies | 12 Months Ended |
Dec. 31, 2018 | |
Investments in Other Companies | |
Investments in Other Companies | 14. Investments in Other Companies: (a) This item includes investments in other companies for an amount of Ch$35,771 million and Ch$42,252 million as of December 31, 2017 and 2018, respectively, detailed as follows: Investment Ownership Interest Equity Book Value Income (Loss) Company Shareholder 2017 2018 2017 2018 2017 2018 2017 2018 % % MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associates Transbank S.A. Banco de Chile 26.16 26.16 56,804 69,358 15,070 18,468 2,117 3,262 Sociedad Operadora de Tarjetas de Crédito Nexus S.A. Banco de Chile 25.81 25.81 13,781 16,805 3,822 4,557 884 735 Administrador Financiero del Transantiago S.A. Banco de Chile 20.00 20.00 15,490 17,978 3,098 3,680 317 582 Redbanc S.A. Banco de Chile 38.13 38.13 7,484 8,356 2,894 3,219 403 325 Centro de Compensación Automatizado S.A. Banco de Chile 33.33 33.33 4,696 5,592 1,589 1,894 236 305 Sociedad Imerc OTC S.A. Banco de Chile 12.33 12.33 11,490 11,952 1,417 1,474 66 56 Sociedad Interbancaria de Depósitos de Valores S.A. Banco de Chile 26.81 26.81 3,659 4,161 995 1,129 215 204 Soc. Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A. Banco de Chile 15.00 15.00 5,838 6,106 908 944 66 58 Subtotal 119,242 140,308 29,793 35,365 4,304 5,527 Joint Venture Servipag Ltda. Banco de Chile 50.00 50.00 9,997 11,398 4,999 5,699 700 701 Artikos Chile S.A. Banco de Chile 50.00 50.00 1,654 2,025 979 1,188 507 583 Subtotal 11,651 13,423 5,978 6,887 1,207 1,284 Total 130,893 153,731 35,771 42,252 5,511 6,811 (b) The total carrying amount of the Bank’s associates as of December 31, 2017 and 2018 is explained as follows: 2017 Soc. Operadora de la Centro de Cámara de Soc. Operadora Sociedad Compensación Compensación de de Tarjetas de Interbancaria de Administrador Sociedad Automatizado Pagos de Alto Valor Crédito Nexus Depósitos de Redbanc Transbank Financiero del Imerc S.A. S.A. S.A. Valores S.A. S.A. S.A. Transantiago S.A. OTC S.A. Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associate’s statement of financial position Current assets 2,351 5,114 11,114 51 6,371 744,681 50,474 11,270 831,426 Non-current assets 4,520 1,224 21,555 3,669 14,864 76,097 830 6,643 129,402 Total Assets 6,871 6,338 32,669 3,720 21,235 820,778 51,304 17,913 960,828 Current liabilities 1,826 500 13,735 61 8,702 763,236 34,896 3,302 826,258 Non-current liabilities 349 — 5,153 — 5,049 738 918 3,112 15,319 Total Liabilities 2,175 500 18,888 61 13,751 763,974 35,814 6,414 841,577 Equity 4,696 5,838 13,781 3,659 7,484 56,804 15,490 11,490 119,242 Minority interest — — — — — — — 9 9 Total Liabilities and Equity 6,871 6,338 32,669 3,720 21,235 820,778 51,304 17,913 960,828 Associate’s revenue and profit Operating income 2,275 3,086 49,403 9 34,083 175,975 3,358 6,315 274,504 Operating expenses (1,359) (2,666) (44,664) (33) (32,334) (167,052) (1,998) (5,281) (255,387) Other income (expenses) — 141 (187) 826 (339) 1,625 649 88 2,803 Income (loss) before taxes 916 561 4,552 802 1,410 10,548 2,009 1,122 21,920 Income tax (208) (122) (1,125) — (354) (2,453) (426) (586) (5,274) Net income for the year 708 439 3,427 802 1,056 8,095 1,583 536 16,646 2018 Soc. Operadora de la Centro de Cámara de Soc. Operadora Sociedad Compensación Compensación de de Tarjetas de Interbancaria de Administrador Sociedad Automatizado Pagos de Alto Valor Crédito Nexus Depósitos de Redbanc Transbank Financiero del Imerc S.A. S.A. S.A. Valores S.A. S.A. S.A. Transantiago S.A. OTC S.A. Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associate’s statement of financial position Current assets 3,088 5,871 12,918 153 6,084 812,285 55,402 18,842 914,643 Non-current assets 3,985 857 22,221 4,239 14,741 92,273 416 6,431 145,163 Total Assets 7,073 6,728 35,139 4,392 20,825 904,558 55,818 25,273 1,059,806 Current liabilities 1,321 622 14,179 231 9,907 833,788 36,676 10,111 906,835 Non-current liabilities 160 — 4,155 — 2,562 1,412 1,164 3,201 12,654 Total Liabilities 1,481 622 18,334 231 12,469 835,200 37,840 13,312 919,489 Equity 5,592 6,106 16,805 4,161 8,356 69,358 17,978 11,952 140,308 Minority interest — — — — — — — 9 9 Total Liabilities and Equity 7,073 6,728 35,139 4,392 20,825 904,558 55,818 25,273 1,059,806 Operating income 3,214 3,302 50,319 1 35,314 191,568 3,435 6,254 293,407 Operating expenses (2,005) (3,016) (46,426) (35) (33,895) (177,440) (2,615) (5,567) (270,999) Other income (expenses) (25) 177 (173) 796 (260) 2,380 2,982 59 5,936 Gain before tax 1,184 463 3,720 762 1,159 16,508 3,802 746 28,344 Income tax (268) (79) (870) — (308) (4,038) (894) (292) (6,749) Gain for the year 916 384 2,850 762 851 12,470 2,908 454 21,595 (c) Joint Ventures: The Bank has a 50% interest in Servipag Ltda. and a 50% interest in Artikos Chile S.A., two jointly controlled entities. The Bank’s interest in both entities is accounted for using the equity method in the consolidated financial statements. The table below presents summarized financial information as of December 31, 2017 and 2018 of the entities the Bank controls jointly: Artikos Chile S.A. Servipag Ltda. 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ Current assets 1,231 1,397 56,188 59,142 Non-current assets 1,246 1,503 16,669 15,371 Total Assets 2,477 2,900 72,857 74,513 Current liabilities 823 875 56,397 57,847 Non-current liabilities — — 6,463 5,268 Total Liabilities 823 875 62,860 63,115 Equity 1,654 2,025 9,997 11,398 Total Liabilities and Equity 2,477 2,900 72,857 74,513 Operating income 3,194 3,544 40,580 42,679 Operating expenses (2,352) (2,519) (38,401) (40,318) Other income (expenses) 17 12 (473) (339) Profit before tax 859 1,037 1,706 2,022 Income tax 154 130 (305) (621) Profit for the year 1,013 1,167 1,401 1,401 (d) The reconciliation between opening and ending balance of investments in other companies that are not consolidated in 2016, 2017 and 2018 is detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Balance as of January 1, 25,849 30,314 35,771 Capital increase 1,129 — — Participation in net income 4,019 5,511 6,811 Dividends received (667) (484) (411) Other (16) 430 81 Balance as of December 31, 30,314 35,771 42,252 (e) As of December 31, 2017 and 2018, no impairment has been recognized in these investments. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
Intangible Assets | 15. Intangible Assets: (a) Changes in intangible assets during the 2016, 2017 and 2018 periods are as follows: Intangible assets arising Software or from business computer Goodwill (1) combinations (2) programs Total MCh$ MCh$ MCh$ MCh$ Gross Balance Balance as of January 1, 2016 16,714 56,249 100,000 172,963 Acquisitions — — 11,248 11,248 Disposals — — (1,757) (1,757) Balance as of December 31, 2016 16,714 56,249 109,491 182,454 Acquisitions — — 18,779 18,779 Disposals — — (5,790) (5,790) Balance as of December 31, 2017 16,714 56,249 122,480 195,443 Acquisitions — — 23,512 23,512 Disposals — — (1,024) (1,024) Balance as of December 31, 2018 16,714 56,249 144,968 217,931 Accumulated Amortization Balance as of January 1, 2016 — (34,982) (73,281) (108,263) Amortization for the year — (2,286) (8,595) (10,881) Disposals — ― 1,726 1,726 Balance as of December 31, 2016 — (37,268) (80,150) (117,418) Amortization for the year — (2,285) (9,075) (11,360) Disposals — ― 5,790 5,790 Balance as of December 31, 2017 — (39,553) (83,435) (122,988) Amortization for the year — — (10,496) (10,496) Disposals — — 1,024 1,024 Balance as of December 31, 2018 — (39,553) (92,907) (132,460) Net balance as of December 31, 2016 16,714 18,981 29,341 65,036 Net balance as of December 31, 2017 16,714 16,696 39,045 72,455 Net balance as of December 31, 2018 16,714 16,696 52,061 85,471 (1) Goodwill corresponds mainly to business combination with Citibank Chile whose amount is of MCh$12,576 that represents the value of synergies to be generated in the combination process and the acquisition of know-how. (2) Intangible assets arising from business combinations include assets with indefinite useful lives acquired in the business combination with Citibank Chile. As of December 31, 2017 and 2018, the Bank had made the following commitments for technological developments: Amount of Commitment 2017 2018 MCh$ MCh$ Software and licenses 5,129 11,806 (b) Impairment testing of Goodwill For goodwill impairment purposes, testing is carried out at the level of business segments described above and in Note No. 6 to the financial statements. This methodology is in line with IAS 36, where business segments represent the lowest level within the entity at which the goodwill is monitored for internal management purposes. Accordingly, for impairment testing purposes, goodwill acquired through business combinations has been allocated to four individual business segments, as follows: 2017 2018 Business Segments MCh$ MCh$ Retail 5,928 5,928 Wholesale 2,135 2,135 Treasury and money market operations 4,513 4,513 Subsidiaries 4,138 4,138 Total 16,714 16,714 Below are the key assumptions used for determining the value in use for impairment testing purposes: · The Bank determines the recoverable amount of its business segments on the basis of value in use and employs a discounted cash flows (“DCF”) valuation model. The DCF model reflects the characteristics of the banking business for every segment, the country’s expected macroeconomic performance, the bank’s market position and risk appetite while considering both the business and regulatory environment. Based on this backdrop, the model determines the present value of the estimated future earnings that would be distributed to shareholders, once the respective regulatory capital requirements are satisfied. · For purposes of the goodwill impairment testing, the DCF model uses earnings projections for a ten-year period. Estimating future earnings requires judgment based on the bank’s past and current performance as well as expected developments in the industry, related markets and main macroeconomic variables such as GDP growth, nominal interest rates and inflation, lending spreads and expected credit losses. · A ten-year period is deemed as the Bank assumes that over that period it is possible to achieve the goals set in the long-term business strategy. · Earnings projections result from business growth, particularly associated with projected expansion rates for the local economy, the industry’s loan book and the Bank’s strategic goals. Then, based on historical data and a linear regression analysis, the Bank determines a multiplier of loan expansion (real terms) over GDP growth for the local economy. Currently, this multiplier is approximately 1.9 times and is expected to decrease overtime as long as banking penetration increases across the diverse business segments. For GDP growth forecasting, the Bank applies judgment based on publicly available information, such as Central Bank’ estimates and market analysts’ projections. · Following the estimation of growth rates for the economy and the banking industry, expansion rates of the Bank’s loan book are determined by considering the achievement of the Bank’s long-term strategic goals. Therefore, real growth rates are considered to be slightly higher than the industry rates within the ten-year period, assuming that a market share of 17.8% is achieved at year three and remains constant onwards. According to the Bank’s assessment this market share should permit it to obtain economies of scale while ensuring profitable growth by preserving the Bank’s balance between risk and return. · Earnings projections beyond the ten-year period are involved in the terminal value, which considers a perpetual cash flows growth rate within the long-run set at 4.5% in the baseline scenario. This is in line with the compounded average growth rate of cash flows over the ten-year period deemed for evaluation. · For purposes of business segments valuation, the DCF model considers discount rates that are determined by carrying out a linear regression analysis based on historical data of monthly stock returns for the Bank and the market portfolio or overall stock index (IGPA index in Chile). In order to do this, an index linear model is applied, which is widely used in finance for these purposes. After estimating the model parameters (alpha and beta), the Capital Asset Pricing Model (“CAPM”) is utilized in order to determine the cost of equity or discount rate for shareholders’ cash flows. When using CAPM, equilibrium scenarios are also assumed for risk-free rates and inflation. Based on this analysis, an 8.4% discount rate was computed by using CAPM and, therefore the Bank determined a cost of equity of 9.0% as a baseline scenario for discount rates used for valuation purposes. The Bank also carries out a sensitivity analysis by setting discounts rates of 8.0% and 10.0%. · The value in use of every business segment is sensitive to earnings projections, discount rates and, to a much lesser extent, long-term growth rates. Changes in market factors may affect the calculation of discount rates. (c) The annual goodwill impairment tests for the years ended December 31, 2017 and 2018 did not result in an impairment loss on the goodwill of the Bank’s business segments as their economic values were higher than their carrying amounts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment | |
Property and Equipment | 16. Property and Equipment: (a) As of December 31, 2017 and 2018, this account and its changes are detailed as follows: Land and Buildings Equipment Other Total MCh$ MCh$ MCh$ MCh$ (a.1) Cost Balance as of January 1, 2017 302,187 180,322 50,404 532,913 Additions 10,606 8,898 3,720 23,224 Disposals/write-downs/sales (1,365) (4,851) (1,569) (7,785) Accumulated depreciation (see (a.2)) (142,768) (148,006) (41,316) (332,090) Impairment loss (*) (***) — — (3) (3) Balance as of December 31, 2017 168,660 36,363 11,236 216,259 Balance as of January 1, 2018 311,428 184,369 52,552 548,349 Additions 12,589 12,702 2,774 28,065 Disposals/write-downs/sales (3,145) (13,845) (1,785) (18,775) Accumulated depreciation (see (a.2)) (150,099) (148,455) (42,879) (341,433) Impairment loss (*) (287) (6) (41) (334) Balance as of December 31, 2018 170,486 34,765 10,621 215,872 (a.2) Accumulated Depreciation Balance as of January 1, 2017 (134,900) (139,277) (39,654) (313,831) Depreciation charges of the year (*) (**) (9,040) (13,723) (3,045) (25,808) Sales and disposals of the year 1,172 4,851 1,526 7,549 Transfers ― 143 (143) ― Accumulated Depreciation as of December 31, 2017 (142,768) (148,006) (41,316) (332,090) Depreciation charges of the year (*) (**) (9,193) (14,291) (3,333) (26,817) Sales and disposals of the year 1,862 13,842 1,770 17,474 Accumulated Depreciation as of December 31, 2018 (150,099) (148,455) (42,879) (341,433) (*) See Note No. 37 about Depreciation, Amortization and Impairment (**) It does not include depreciation for the year for Investment Properties, which it registered under the item “Investment Properties” for an amount of Ch$368 million (Ch$368 million in 2017) (***) It does not include charge-off provisions for Property and Equipment for an amount of Ch$163 million in 2017. (b) As of December 31, 2017 and 2018 the Bank has operating lease agreements, in which it acts as lessee, that cannot be terminated unilaterally; Information on the future payments is detailed as follows: Lease Contracts Over 1 Over 1 Over 3 month Over 3 months year years Expenses Up to and up and up and up and up for the 1 to 3 up to 12 to 3 to 5 Over 5 year month months months years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Year 2017 33,017 2,764 5,522 23,462 45,891 33,789 34,401 145,829 Year 2018 34,773 2,929 5,828 23,578 46,143 28,730 26,697 133,905 As these lease agreements are operating leases under IAS 17 the leased assets are not presented in the Bank’s statement of financial position. The Bank has entered into commercial leases of real estate. These leases have an average life of 5 years. There are no restrictions placed upon the lessee by entering into the lease. (c) As of December 31, 2017 and 2018, the Bank does not have any financial lease agreements as lessee and, therefore, there are no property and equipment balances to be reported from such transactions as of December 31, 2017 and 2018. (d) As of December 31, 2017 and 2018 the gross amount of fully depreciated assets (mainly equipment and facilities) corresponds to Ch$225,641 million and Ch$219,355 million, respectively. |
Investment Properties
Investment Properties | 12 Months Ended |
Dec. 31, 2018 | |
Investment Properties | |
Investment Properties | 17. Investment Properties: 2016 2017 2018 MCh$ MCh$ MCh$ Net Balance as of January 1, 15,042 14,674 14,306 Additions resulting from business combinations — — — Reclassifications — — — Disposals — — — Depreciation charges in the period (368) (368) (368) Impairment — — — Net Balance as of December 31, 14,674 14,306 13,938 Estimated useful lives applied by the Bank are presented in Note No. 2(l) on Property and equipment. As of December 31, 2018, the fair value of the investment properties held by the Bank is Ch$ 46,562 million (Ch$ 42,230 million as of December 31, 2017). In 2018, the Bank earned income of Ch$6,265 million (Ch$5,844 million in 2017) renting out their investment properties. In the same period the Bank incurred corresponding expenses of Ch$2,806 million and Ch$2,794 million per year in 2017 and 2018. |
Current Taxes and Deferred Taxe
Current Taxes and Deferred Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Current Taxes and Deferred Taxes | |
Current Taxes and Deferred Taxes | 18. Current Taxes and Deferred Taxes: (a) Current Tax: The Bank and its subsidiaries at the end of each year, have constituted a First Category Income Tax Provision, which was determined based on current tax regulations, and has been reflected in the statement of financial position net of taxes to be recovered or payable, as applicable, as of December 31, 2018 and 2017, according to the following detail: 2017 2018 MCh$ MCh$ Income taxes 108,844 150,798 Less: Monthly prepaid taxes (PPM) (123,717) (126,917) Credit for training expenses (2,036) (2,224) Other (2,670) (1,410) Total tax (receivable) payable, net (19,579) 20,247 2017 2018 MCh$ MCh$ Current tax assets 23,032 677 Current tax liabilities (3,453) (20,924) Total tax receivable (payable), net 19,579 (20,247) (b) Income Tax: The Bank’s tax expense recorded for the years ended December 31, 2016, 2017 and 2018 is detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Income tax expense: Current year taxes 134,759 105,024 159,153 Tax from previous period 1,030 (1,401) 2,574 Subtotal 135,789 103,623 161,727 (Credit) charge for deferred taxes: Origin and reversal of temporary differences (26,044) 20,043 (4,582) Effect of changes in tax rate (9,158) (5,729) ― Subtotal (35,202) 14,314 (4,582) Other (375) (2,576) 2,623 Net charge to income for income taxes 100,212 115,361 159,768 Tax Rate 24.00 % 25.50 % 27.00 % (c) Reconciliation of effective tax rate: 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, 2016, 2017 and 2018: 2016 2017 2018 Tax rate Tax rate Tax rate % MCh$ % MCh$ % MCh$ Income tax calculated on net income before tax 24.00 162,063 25.50 175,298 27.00 206,116 Subordinated Debt Payment (*) (5.05) (34,092) (5.67) (38,997) (3.21) (24,515) Additions or deductions (**) (3.90) (26,332) (2.88) (19,794) (4.18) (31,894) Tax from previous years 0.15 1,030 (0.20) (1,401) 0.34 2,574 Effect of changes in tax rate (1.36) (9,158) (0.83) (5,729) — — Other 1.00 6,701 0.87 5,984 0.98 7,487 Effective rate and income tax expense 14.84 100,212 16.79 115,361 20.93 159,768 (*) The tax expense related to the subordinated debt held by SAOS S.A, it ended during the current fiscal year, as a result of the generation of sufficient resources to pay off the total debt. (**) The deductions of the tax rate for 2016, 2017 and 2018 mainly relate to permanent differences between tax and financial accounting rules. On September 29, 2014, Law 20,780, published in the Diario Oficial of Chile (equivalent to the “Federal Register”), amended the System of Income Taxation and introduced various adjustments to the tax system. In the same line, on February 8, 2016 Law 20,899 was published, which established that open corporations must apply the tax regime of the first category with partial deduction of the credit in the final taxes. A regime characterized by the fact that shareholders will only be entitled to allocate against personal taxes (Global Supplementary or Additional), 65% of the first category tax paid by the company. For this tax regime, the law 20,780 establishes a gradual increase of rates to the first category tax rates according to the following periodicity: Year Rate 2014 21.0 % 2015 22.5 % 2016 24.0 % 2017 25.5 % 2018 27.0 % Additionally, according to No. 11 of Article 1 of Law 20,780, as of January 1, 2017, the rate of sole tax has been increased to rejected expenses of article 21 from 35% to 40%. (b) Effect of deferred taxes on income and equity: The effects of deferred taxes on assets, liabilities and income accounts are detailed as follows: Balance as of Effect Balance as of Balance as of Effect Balance as of January 1, December 31, January 1, December 31, 2017 Income Equity 2017 2018 Income Equity 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Debit differences: Allowances for loan losses 127,719 (12,276) — 115,443 138,643 3,232 — 141,875 Personnel provisions 11,231 1,290 — 12,521 12,521 756 — 13,277 Staff vacations 6,674 234 — 6,908 6,908 333 — 7,241 Accrued interest and indexation adjustments from past due loans 3,355 59 — 3,414 3,414 (182) — 3,232 Staff severance indemnities provision 1,854 (352) (45) 1,457 1,457 (8) 35 1,484 Provisions of credit card expenses 12,459 (3,504) — 8,955 8,955 858 — 9,813 Provisions of accrued expenses 14,489 1,869 — 16,358 16,358 (3,203) — 13,155 Derivative instruments adjustments — — — — — 1,356 — 1,356 Adjustment for valuation and impairment of financial assets at fair value through OCI — — — — — (419) 1,365 946 Leasing 37,119 (4,570) — 32,549 32,549 10,439 — 42,988 Other adjustments 5,664 581 1 6,246 6,246 (5,233) 1 1,014 Total debit differences 220,564 (16,669) (44) 203,851 227,051 7,929 1,401 236,381 Credit differences: Depreciation of property and equipment and investment properties 11,815 2,466 — 14,281 14,281 709 — 14,990 Adjustment for valuation and impairment of financial assets at fair value through OCI 1,092 1 1,299 2,392 2,392 — (2,392) — Transitory assets 4,772 714 — 5,486 5,486 28 — 5,514 Derivative instruments adjustments 7,707 (3,329) — 4,378 4,378 (4,378) — — Accrued interest to effective rate 2,247 (644) — 1,603 1,603 (39) — 1,564 Advance payment of lump-sum under union contracts — — — — — 6,699 — 6,699 Intangible assets amortization 6,090 (587) — 5,503 5,503 — — 5,503 Other adjustments 9,918 (976) 1 8,943 8,943 328 — 9,271 Total credit differences 43,641 (2,355) 1,300 42,586 42,586 3,347 (2,392) 43,541 Total Assets (Liabilities), net 176,923 (14,314) (1,344) 161,265 184,465 4,582 3,793 192,840 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets | |
Other Assets | 19. Other Assets: As of December 31, 2017 and 2018, other assets are detailed as follows: 2017 2018 MCh$ MCh$ Deposit by derivatives margin 174,254 336,548 Assets held for leasing (*) 127,979 101,848 Recoverable income taxes 20,437 44,665 Prepaid expenses 12,180 37,394 Other accounts and notes receivable 99,201 29,080 Documents intermediated (**) 32,593 28,478 Assets received or awarded as payment (***): Assets received in lieu of payment 19,905 24,871 Provisions for assets received in lieu of payment (1,532) (1,915) Commissions receivable 6,387 12,155 Accounts receivable for sale of assets received in lieu of payment 3,353 4,816 Rental guarantees 1,849 1,895 VAT receivable — 1,302 Recovered leased assets for sale 3,053 1,064 Mutual funds (****) 78,069 ― Other 27,072 29,490 Total 604,800 651,691 (*) These correspond to property and equipment to be given under a financial lease. (**) Documents intermediated refers to securities lending agreements managed by the Bank’s subsidiary Banchile Corredores de Bolsa S.A. (***) Assets received in lieu of payment are valued at fair value, which is calculated considering the lesser between appraised value and value of award, less cost of sell. (****) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). |
Current Accounts and Other Dema
Current Accounts and Other Demand Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Current Accounts and Other Demand Deposits | |
Current Accounts and Other Demand Deposits | 20 . Current Accounts and Other Demand Deposits: As of December 31, 2017 and 2018, current accounts and other demand deposits are detailed as follows: 2017 2018 MCh$ MCh$ Current accounts 7,200,050 7,725,465 Other demand deposits 1,081,223 1,143,414 Other deposits and accounts 634,433 715,609 Total 8,915,706 9,584,488 |
Saving Accounts and Time Deposi
Saving Accounts and Time Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Saving Accounts and Time Deposits | |
Saving Accounts and Time Deposits | 21. Saving Accounts and Time Deposits: As of December 31, 2017 and 2018, saving accounts and time deposits are detailed as follows: 2017 2018 MCh$ MCh$ Time deposits 9,743,968 10,343,922 Term savings accounts 214,120 224,303 Other term balances payable 109,690 87,949 Total 10,067,778 10,656,174 |
Borrowings from Financial Insti
Borrowings from Financial Institutions | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings from Financial Institutions | |
Borrowings from Financial Institutions | 22. Borrowings from Financial Institutions: As of December 31, 2017 and 2018, borrowings from financial institutions are detailed as follows: 2017 2018 MCh$ MCh$ Domestic banks Interbank loans 1,100 7,001 Current account overdrafts — 374 Subtotal 1,100 7,375 Foreign banks Foreign trade financing Chilean export financing 1,064,435 1,354,943 Chilean import financing 23,064 31,523 Obligations for transactions between other countries — — Borrowings and other obligations Current account overdrafts 13,745 18,283 Borrowings obtained at long-term 92,683 104,635 Subtotal 1,193,927 1,509,384 Chilean Central Bank Debt reprogramming credit lines 1 — Subtotal 1 — Total 1,195,028 1,516,759 |
Debt Issued
Debt Issued | 12 Months Ended |
Dec. 31, 2018 | |
Debt Issued | |
Debt Issued | 23. Debt Issued: As of December 31, 2017 and 2018, Debt issued is detailed as follows: 2017 2018 MCh$ MCh$ Mortgage bonds 23,424 16,368 Bonds 5,769,334 6,772,990 Subordinated bonds 696,217 686,194 Total 6,488,975 7,475,552 During the year ended as of December 31, 2018, Banco de Chile issued bonds by an amount of Ch$2,157,587 million, from which corresponds to Current Bonds and Commercial papers by an amount of Ch$1,216,867 million and Ch$940,720 million respectively, according to the following details: Bonds Amount Terms Annual issue Series Currency MCh$ Years rate % Issue date Maturity date BCHIEA0617 UF 106,001 6 1.60 03/01/2018 03/01/2024 BCHIBN1015 UF 114,212 12 2.90 24/01/2018 24/01/2030 BCHIEF1117 UF 79,612 8 1.80 09/02/2018 09/02/2026 BCHIEP0717 UF 104,550 11 2.00 13/02/2018 13/02/2029 BCHIBT1215 UF 57,936 14 3.00 13/03/2018 13/03/2032 BCHIBW1215 UF 59,081 14 2.20 14/08/2018 14/08/2032 BCHIDY0917 UF 55,619 5 1.24 16/08/2018 16/08/2023 BCHIEN1117 UF 109,543 10 2.08 25/09/2018 25/09/2028 BCHIDX0817 UF 109,311 5 1.70 22/10/2018 22/10/2023 BCHIDY0917 UF 12,025 5 1.74 22/10/2018 22/10/2023 BCHIDY0917 UF 15,299 5 1.75 22/10/2018 22/10/2023 BCHIBY1215 UF 59,374 15 2.29 24/10/2018 24/10/2033 BCHIBX0815 UF 58,998 15 2.29 24/10/2018 24/10/2033 BCHIBZ0815 UF 59,987 15 2.23 07/12/2018 07/12/2033 BCHIEJ0717 UF 82,878 9 1.99 12/12/2018 12/12/2027 Subtotal UF 1,084,426 BCHIDH0916 CLP 20,370 4 3.80 11/06/2018 11/06/2022 BONO USD USD 32,842 10 4.26 28/09/2018 28/09/2028 BONO CHF CHF 79,229 5 0.57 26/10/2018 26/10/2023 Subtotal other currencies 132,441 Total as of December 31, 2018 1,216,867 Commercial Papers Annual interest Rate Counterparty Currency Amount MCh$ % Issued date Maturity date Wells Fargo Bank USD 2,998 1.85 06/02/2018 08/05/2018 Wells Fargo Bank USD 2,998 1.93 06/02/2018 08/06/2018 Wells Fargo Bank USD 2,998 1.98 06/02/2018 09/07/2018 Wells Fargo Bank USD 2,998 2.05 06/02/2018 06/08/2018 Wells Fargo Bank USD 2,998 2.05 06/02/2018 08/08/2018 Wells Fargo Bank USD 29,716 2.25 28/02/2018 28/06/2018 Wells Fargo Bank USD 1,723 2.40 28/02/2018 29/08/2018 Citibank N.A. USD 6,894 2.60 28/02/2018 25/02/2019 Wells Fargo Bank USD 13,780 2.30 02/03/2018 02/07/2018 Wells Fargo Bank USD 4,489 2.30 05/03/2018 06/07/2018 Citibank N.A. USD 18,080 2.22 07/03/2018 05/06/2018 Wells Fargo Bank USD 1,747 2.25 13/03/2018 11/06/2018 Wells Fargo Bank USD 3,006 2.45 14/03/2018 11/09/2018 Wells Fargo Bank USD 606 2.60 15/03/2018 14/12/2018 Wells Fargo Bank USD 605 2.60 29/03/2018 28/09/2018 Wells Fargo Bank USD 60,343 2.60 05/04/2018 04/09/2018 Wells Fargo Bank USD 30,254 2.50 06/04/2018 01/08/2018 Wells Fargo Bank USD 1,743 2.40 10/04/2018 09/08/2018 Wells Fargo Bank USD 8,918 2.75 13/04/2018 12/04/2019 Wells Fargo Bank USD 8,946 2.75 17/04/2018 16/04/2019 Citibank N.A. USD 19,046 2.36 08/05/2018 08/08/2018 Citibank N.A. USD 31,665 2.38 09/05/2018 07/08/2018 Citibank N.A. USD 1,873 2.37 10/05/2018 08/08/2018 Citibank N.A. USD 12,250 2.36 14/05/2018 15/08/2018 Wells Fargo Bank USD 18,968 2.70 11/06/2018 01/04/2019 Wells Fargo Bank USD 28,973 2.42 13/06/2018 24/07/2018 Wells Fargo Bank USD 15,991 2.45 19/06/2018 20/09/2018 Citibank N.A. USD 12,778 2.41 20/06/2018 20/09/2018 Citibank N.A. USD 31,944 2.45 20/06/2018 03/10/2018 Wells Fargo Bank USD 3,194 2.65 20/06/2018 13/02/2019 Citibank N.A. USD 3,885 2.50 22/06/2018 23/11/2018 Wells Fargo Bank USD 19,495 2.20 28/06/2018 27/07/2018 Wells Fargo Bank USD 4,875 2.30 03/07/2018 11/09/2018 Wells Fargo Bank USD 29,556 2.30 06/07/2018 10/09/2018 Wells Fargo Bank USD 62,079 2.45 17/07/2018 17/10/2018 Wells Fargo Bank USD 32,729 2.45 24/07/2018 22/10/2018 Wells Fargo Bank USD 19,283 2.45 27/07/2018 29/10/2018 Wells Fargo Bank USD 31,919 2.50 30/07/2018 29/11/2018 Wells Fargo Bank USD 16,039 2.52 01/08/2018 06/12/2018 Citibank N.A. USD 25,787 2.50 02/08/2018 06/12/2018 Wells Fargo Bank USD 10,859 2.47 07/08/2018 14/12/2018 Wells Fargo Bank USD 3,238 2.46 09/08/2018 14/12/2018 Wells Fargo Bank USD 17,070 2.53 31/08/2018 28/12/2018 Wells Fargo Bank USD 6,929 2.58 04/09/2018 06/02/2019 Citibank N.A. USD 34,646 2.57 04/09/2018 04/01/2019 Citibank N.A. USD 4,902 2.24 07/09/2018 09/10/2018 Citibank N.A. USD 34,525 2.25 07/09/2018 09/10/2018 Citibank N.A. USD 1,742 2.23 10/09/2018 09/10/2018 Wells Fargo Bank USD 3,484 2.65 10/09/2018 11/03/2019 Wells Fargo Bank USD 6,026 2.45 11/09/2018 06/12/2018 Bofa Merrill Lynch USD 18,421 2.62 14/09/2018 01/03/2019 Wells Fargo Bank USD 33,464 2.48 20/09/2018 20/12/2018 Wells Fargo Bank USD 1,322 2.70 03/10/2018 05/04/2019 Wells Fargo Bank USD 13,591 2.78 12/10/2018 25/04/2019 Wells Fargo Bank USD 6,694 2.55 16/10/2018 16/01/2019 Citibank N.A. USD 6,713 2.50 17/10/2018 04/01/2019 Citibank N.A. USD 34,208 2.65 23/10/2018 22/01/2019 Citibank N.A. USD 20,483 2.84 11/12/2018 11/03/2019 Wells Fargo Bank USD 2,236 2.90 12/12/2018 12/04/2019 Wells Fargo Bank USD 34,555 2.67 20/12/2018 19/02/2019 Wells Fargo Bank USD 10,466 2.97 27/12/2018 02/05/2019 Wells Fargo Bank USD 6,977 2.97 27/12/2018 29/04/2019 Total as of December 31, 2018 940,720 During the year ended December 31, 2018, there were no subordinated bonds issued. During the year ended as of December 31, 2017, Banco de Chile issued bonds by an amount of Ch$1,399,001 million, from which corresponds to Current Bonds and Commercial papers by an amount of Ch$590,052 million and Ch$808,949 million respectively, according to the following details: Bonds Annual Amount Terms issue rate Series Currency MCh$ Years % Issue date Maturity date BCHIBQ0915 UF 58,643 13 3.00 20/01/2017 20/01/2030 BCHIBH0915 UF 56,338 9 2.70 01/02/2017 01/02/2026 BCHIBP1215 UF 58,157 13 3.00 06/03/2017 06/03/2030 BCHIBC1215 UF 30,544 6 2.50 06/03/2017 06/03/2023 BCHIBC1215 UF 5,554 6 2.50 07/03/2017 07/03/2023 BCHIBC1215 UF 19,600 6 2.50 12/04/2017 12/04/2023 BCHIBG1115 UF 85,115 9 2.70 09/05/2017 09/05/2026 BCHIBE1115 UF 55,097 7 2.70 16/10/2017 16/10/2024 BCHIBR1215 UF 57,350 13 3.00 17/11/2017 17/11/2030 Subtotal UF 426,398 BONO EUR EUR 36,782 15 1.71 26/04/2017 26/04/2032 BONO JPY JPY 55,506 20 1.02 17/10/2017 17/10/2037 BONO USD USD 71,366 20 2.49 20/12/2017 20/12/2037 Subtotal other currencies 163,654 Total as of December 31, 2017 590,052 Commercial Papers Annual interest Counterparty Currency Amount MCh$ rate % Issued date Maturity date Citibank N.A. USD 13,223 1.37 05/01/2017 05/06/2017 Wells Fargo Bank USD 16,702 1.50 06/01/2017 03/07/2017 Wells Fargo Bank USD 6,681 1.48 06/01/2017 05/07/2017 Wells Fargo Bank USD 3,340 1.38 06/01/2017 05/06/2017 Wells Fargo Bank USD 3,340 1.27 06/01/2017 08/05/2017 Wells Fargo Bank USD 3,340 1.17 06/01/2017 06/04/2017 Wells Fargo Bank USD 24,906 1.20 09/01/2017 10/04/2017 Wells Fargo Bank USD 671 1.47 09/01/2017 10/07/2017 Citibank N.A. USD 2,685 1.47 09/01/2017 28/07/2017 Citibank N.A. USD 67,131 1.27 09/01/2017 12/05/2017 Wells Fargo Bank USD 20,105 1.36 10/01/2017 09/06/2017 Bofa Merrill Lynch USD 16,754 1.35 10/01/2017 09/06/2017 Wells Fargo Bank USD 1,318 1.23 13/01/2017 12/05/2017 Wells Fargo Bank USD 3,295 1.43 13/01/2017 12/07/2017 Bofa Merrill Lynch USD 3,884 1.70 07/02/2017 06/02/2018 Bofa Merrill Lynch USD 4,531 1.70 07/02/2017 06/02/2018 Bofa Merrill Lynch USD 11,017 1.70 08/02/2017 07/02/2018 Wells Fargo Bank USD 12,797 1.40 10/02/2017 01/09/2017 Wells Fargo Bank USD 19,196 1.40 10/02/2017 11/09/2017 Wells Fargo Bank USD 19,284 1.70 13/02/2017 12/02/2018 Wells Fargo Bank USD 1,607 1.32 13/02/2017 14/08/2017 Citibank N.A. USD 10,992 1.04 15/02/2017 15/05/2017 Citibank N.A. USD 15,977 1.34 15/02/2017 15/08/2017 Citibank N.A. USD 4,474 1.34 15/02/2017 15/08/2017 Citibank N.A. USD 4,471 1.35 16/02/2017 08/09/2017 Wells Fargo Bank USD 9,885 1.40 21/03/2017 29/09/2017 Bofa Merrill Lynch USD 33,024 1.16 24/03/2017 23/06/2017 Bofa Merrill Lynch USD 26,419 1.16 24/03/2017 23/06/2017 Bofa Merrill Lynch USD 33,165 1.42 30/03/2017 27/09/2017 Wells Fargo Bank USD 16,651 1.30 10/04/2017 08/08/2017 Wells Fargo Bank USD 13,351 1.45 11/04/2017 10/10/2017 Citibank N.A. USD 33,061 1.30 12/06/2017 12/09/2017 Wells Fargo Bank USD 2,645 1.48 12/06/2017 11/12/2017 Bofa Merrill Lynch USD 7,972 1.30 16/06/2017 15/09/2017 Wells Fargo Bank USD 6,643 1.75 16/06/2017 15/06/2018 Wells Fargo Bank USD 6,786 1.81 21/06/2017 20/06/2018 Citibank N.A. USD 10,418 1.48 23/06/2017 19/12/2017 Citibank N.A. USD 5,960 1.46 27/06/2017 19/12/2017 Citibank N.A. USD 26,487 1.35 27/06/2017 23/10/2017 JPMorgan Chase USD 33,322 1.48 11/07/2017 08/11/2017 Citibank N.A. USD 32,871 1.52 14/07/2017 12/01/2018 Wells Fargo Bank USD 16,284 1.55 31/07/2017 31/01/2018 Wells Fargo Bank USD 3,257 1.55 31/07/2017 31/01/2018 Wells Fargo Bank USD 6,513 1.42 31/07/2017 31/10/2017 Wells Fargo Bank USD 6,513 1.42 31/07/2017 31/10/2017 Wells Fargo Bank USD 10,952 1.52 14/08/2017 09/02/2018 Wells Fargo Bank USD 12,852 1.52 21/08/2017 16/02/2018 Wells Fargo Bank USD 19,047 1.47 25/08/2017 22/12/2017 Wells Fargo Bank USD 18,708 1.63 13/10/2017 11/04/2018 Wells Fargo Bank USD 12,472 1.63 13/10/2017 09/04/2018 Wells Fargo Bank USD 24,944 1.77 13/10/2017 10/07/2018 Wells Fargo Bank USD 6,236 1.91 13/10/2017 12/10/2018 Bofa Merrill Lynch USD 12,472 1.63 13/10/2017 12/04/2018 JPMorgan Chase USD 8,215 1.83 14/11/2017 13/08/2018 Wells Fargo Bank USD 15,883 1.65 21/11/2017 21/03/2018 Wells Fargo Bank USD 42,624 1.75 07/12/2017 05/03/2018 Wells Fargo Bank USD 1,596 2.25 14/12/2017 13/12/2018 Total as of December 31, 2017 808,949 During the year ended December 31, 2017, there were no subordinated bonds issued. |
Other Financial Obligations
Other Financial Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Other Financial Obligations | |
Other Financial Obligations | 24. Other Financial Obligations: As of December 31, 2017 and 2018, other financial institutions are detailed as follows: 2017 2018 MCh$ MCh$ Other Chilean obligations 104,665 95,912 Public sector obligations 32,498 22,102 Total 137,163 118,014 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions. | |
Provisions | 25. Provisions: (a) As of December 31, 2017 and 2018, provisions are detailed as follows: 2017 2018 MCh$ MCh$ Provision for minimum dividends 172,804 178,462 Provisions for contingent loan risks (*) — 25,016 Provisions for other contingencies 21,733 468 Total 194,537 203,946 (*) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). (b) The following table details the changes in provisions during 2017 and 2018: Minimum Contingent dividends loan risks Other Total MCh$ MCh$ MCh$ MCh$ Balances as of January 1, 2017 165,675 — 21,893 187,568 Provisions established 172,804 — — 172,804 Provisions used (165,675) — — (165,675) Provisions released — — (160) (160) Balances as of December 31, 2017 172,804 — 21,733 194,537 Balances as of January 1, 2018 172,804 22,975 21,733 217,512 Provisions established 178,462 2,041 3 180,506 Provisions used (172,804) ― (19,347) (192,151) Provisions released ― ― (1,921) (1,921) Balances as of December 31, 2018 178,462 25,016 468 203,946 (c) Provisions for contingent loan risks are detail are detailed as follows: 2017 (*) 2018 MCh$ MCh$ Foreign office guarantees and standby letters of credit ― 428 Confirmed foreign letters of credit ― 29 Issued foreign letters of credit ― 93 Performance guarantees ― 4,080 Undrawn credit lines ― 20,386 Total ― 25,016 (*) An analysis of changes in the gross carrying amount and the corresponding allowance for impairment losses in relation to each contingent loan risk is, as follow: a. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification as of December 31, 2018 and 2017. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 332,965 138 8,226 — — — 341,329 283,329 Substandard — — 347 — — — 347 1,706 Non-complying — — — — — — — Total 332,965 138 8,573 — — — 341,676 285,035 An analysis of changes in the outstanding exposures on foreign office guarantees and standby letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 274,563 84 10,388 — — — 285,035 Net change on exposures 33,660 24 (4,139) — 132 — 29,677 Transfer to Stage 1 4,994 — (4,855) — (139) — — Transfer to Stage 2 (6,513) — 6,513 — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 26,261 30 666 — 7 — 26,964 Total 332,965 138 8,573 — — — 341,676 An analysis of changes in ECL exposures on foreign office guarantees and standby letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 256 — — — — — 256 Net change on exposures 152 (1) — — 57 — 208 Transfer to Stage 1 60 — — — (60) — — Transfer to Stage 2 (14) — 14 — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year (56) — (14) — — — (70) Foreign exchange adjustments 30 1 — — 3 — 34 Total 428 — — — — — 428 b. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 56,764 — — — — — 56,764 64,970 Substandard — — — — — — — — Non-complying — — — — — — — — Total 56,764 — — — — — 56,764 64,970 An analysis of changes in the outstanding exposures on confirmed foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 64,970 — — — — — 64,970 Net change on exposures (15,455) — 8 — — — (15,447) Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 7,249 — (8) — — — 7,241 Total 56,764 — — — — — 56,764 An analysis of changes in ECL exposures on confirmed foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 23 — — — — — 23 Net change on exposures 3 — — — — — 3 Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year — — — — — — — Foreign exchange adjustments 3 — — — — — 3 Total 29 — — — — — 29 c. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 344,874 1,585 41,823 114 — — 388,396 94,313 Substandard — — — — — — — — Non-complying — — — — — — — — Total 344,874 1,585 41,823 114 — — 388,396 94,313 An analysis of changes in the outstanding exposures on issued foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 80,106 1,737 11,984 486 — — 94,313 Net change on exposures 262,824 832 21,226 (1,498) — — 283,384 Transfer to Stage 1 6,268 — (6,268) — — — — Transfer to Stage 2 (13,420) (1,098) 13,420 1,098 — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 9,096 114 1,461 28 — — 10,699 Total 344,874 1,585 41,823 114 — — 388,396 An analysis of changes in ECL exposures on issued foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 43 6 — — — — 49 Net change on exposures 38 7 — (1) — — 44 Transfer to Stage 1 — — — — — — — Transfer to Stage 2 (6) (3) 6 3 — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year 4 — (6) (2) — — (4) Foreign exchange adjustments 4 — — — — — 4 Total 83 10 — — — — 93 d. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 1,685,980 54,523 477,489 3,470 — 22 2,221,484 2,209,665 Substandard — — 7,586 — — — 7,586 9,157 Non-complying — — — 74 2,310 1,228 3,612 2,006 Total 1,685,980 54,523 485,075 3,544 2,310 1,250 2,232,682 2,220,828 An analysis of changes in the outstanding exposures on Performance guarantees from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 1,803,358 46,416 365,137 3,741 1,162 1,014 2,220,828 Net change on exposures (6,282) 8,008 (23,779) 1,963 (786) (1,935) (22,811) Transfer to Stage 1 189,344 10,346 (189,279) (10,258) (65) (88) — Transfer to Stage 2 (332,091) (9,034) 332,365 9,067 (274) (33) — Transfer to Stage 3 (13) (1,304) (2,256) (975) 2,269 2,279 — Foreign exchange adjustments 31,664 91 2,887 6 4 13 34,665 Total 1,685,980 54,523 485,075 3,544 2,310 1,250 2,232,682 An analysis of changes in ECL exposures on Performance guarantees from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 1,841 384 947 — 470 34 3,676 Net change on exposures 664 73 (113) (2) (310) (11) 301 Transfer to Stage 1 — 18 — — — (18) — Transfer to Stage 2 (439) (87) 442 90 (3) (3) — Transfer to Stage 3 — (80) (86) — 86 80 — Impact on year end ECL of exposures transferred between stages during the year 209 200 (444) (88) 250 (79) 48 Foreign exchange adjustments 33 1 19 — 2 — 55 Total 2,308 509 765 — 495 3 4,080 e. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 1,279,611 5,512,504 177,084 786,603 — 449 7,756,251 7,227,822 Substandard — — 1,502 — — — 1,502 1,791 Non-complying — — — 60 328 11,184 11,572 10,793 Total 1,279,611 5,512,504 178,586 786,663 328 11,633 7,769,325 7,240,406 An analysis of changes in the outstanding exposures undrawn credit lines from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 1,199,593 5,086,210 147,053 794,449 411 12,690 7,240,406 Net change on exposures 111,426 621,021 (5,449) (114,834) (326) (10,615) 601,223 Transfer to Stage 1 130,936 491,857 (130,926) (488,237) (11) (3,619) — Transfer to Stage 2 (166,795) (561,588) 166,892 563,941 (97) (2,353) — Transfer to Stage 3 (120) (1,928) (217) (13,476) 337 15,404 — Foreign exchange adjustments 4,571 (123,068) 1,233 44,820 14 126 (72,304) Total 1,279,611 5,512,504 178,586 786,663 328 11,633 7,769,325 An analysis of changes in ECL exposures on undrawn credit lines from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 937 8,071 147 4,747 — 5,069 18,971 Net change on exposures 684 2,796 21 (2,669) 41 (1,450) (577) Transfer to Stage 1 99 1,463 (96) (817) (4) (645) — Transfer to Stage 2 (87) (3,246) 124 3,898 (37) (652) — Transfer to Stage 3 — (92) (5) (818) 5 910 — Impact on year end ECL of exposures transferred between stages during the year (3) 31 (56) (441) (5) 2,028 1,554 Foreign exchange adjustments 4 100 2 294 — 38 438 Total 1,634 9,123 137 4,194 — 5,298 20,386 f. The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year end stage classification as of December 31, 2018 and 2017. 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 46,561 — — — — — 46,561 60,609 Substandard — — — — — — — — Non-complying — — — — — — — — Total 46,561 — — — — — 46,561 60,609 An analysis of changes in the outstanding exposures on other commitments from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 49,519 — 11,090 — — — 60,609 Net change on exposures (2,958) — (11,090) — — — (14,048) Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments — — — — — — — Total 46,561 — — — — — 46,561 An analysis of changes in ECL exposures on other commitments from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 — — — — — — — Net change on exposures — — — — — — — Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year — — — — — — — Foreign exchange adjustments — — — — — — — Total — — — — — — — |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits | |
Employee Benefits | 26. Employee Benefits: (a) Provisions for personnel benefits and payroll: 2017 2018 MCh$ MCh$ Short-term personnel benefits (a.2) 43,372 47,797 Vacation accrual (a.3) 25,159 26,855 Employee defined benefit plan (a.1)(*) 7,676 7,754 Other Benefits 10,421 10,173 Total 86,628 92,579 (*) See Note No. 2 (y) (iii). (a.1) Employee defined benefit plan: 2017 2018 MCh$ MCh$ Current service cost (86) 250 Interest cost on benefit obligation 343 300 Actuarial gains and losses (164) 127 Net benefit expense 93 677 The net benefit expense is recognized under “Personnel Expenses” (Note No. 35). The principal assumptions used in determining pension obligations for the Bank’s plan are shown below: December 31, December 31, 2017 2018 % % Discount rate 4.53 4.25 Annual salary increase 4.14 4.42 Payment probability 99.99 99.99 The most recent actuarial valuation of the present value of the benefit plan obligation was carried out at December 31, 2018. Changes in the present value of the defined benefit obligation are as follows: 2017 2018 MCh$ MCh$ Opening defined benefit obligation, January 1, 8,851 7,676 Increase (Decrease) in provision 257 550 Benefits paid (1,268) (599) Actuarial gains and losses (164) 127 Closing defined benefit obligation 7,676 7,754 (a.2) The following table details the changes in provisions for incentive plans during 2017 and 2018: 2017 2018 MCh$ MCh$ Balances as of January 1, 37,868 43,372 Provisions established 37,815 40,058 Provisions used (32,311) (35,633) Provisions released — — Balances as of December 31, 43,372 47,797 (a.3) The following table details the changes in provisions for vacation during 2017 and 2018: 2017 2018 MCh$ MCh$ Balances as of January 1, 25,539 25,159 Provisions established 5,626 7,529 Provisions used (6,006) (5,833) Provisions released — — Balances as of December 31, 25,159 26,855 (b) Provisions for share-based employee benefits: As of December 31, 2017 and 2018, the Bank and its subsidiaries do not have a stock compensation plan. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities | |
Other Liabilities | 27. Other Liabilities: As of December 31, 2017 and 2018, other liabilities are detailed as follows: 2017 2018 MCh$ MCh$ Accounts and notes payable (*) 190,151 176,826 Securities unliquidated 2,625 106,071 Documents intermediated 49,672 53,492 Cobranding 32,905 36,081 Financial guarantees (**) 11,374 — Deferred income 5,576 5,743 Insurance payments 478 992 Pending transactions 675 616 VAT payable 918 — Other 14,189 18,984 Total 308,563 398,805 (*) This item includes obligations that fall outside the Bank’s line of business such as withholding taxes, social security payments, insurance payable, and balances from material purchases and provisions for expenses pending payment. (**) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies and Commitments | |
Contingencies and Commitments | 28. Contingencies and Commitments: (a) Commitments accounted for in off-balance-sheet accounts: In order to satisfy its customers’ needs, the Bank entered into several irrevocable commitments and contingent obligations. Although these obligations are not recognized in the Statement of Financial Position, they entail credit risks and, therefore, form part of the Bank’s overall risk. 2017 2018 MCh$ MCh$ Off-balance-sheet accounts Foreign office guarantees and standby letters of credit 285,035 341,676 Confirmed foreign letters of credit 64,970 56,764 Issued foreign letters of credit 94,313 388,396 Performance guarantees 2,220,828 2,232,682 Undrawn credit lines 7,240,406 7,769,325 Other commitments 60,609 46,561 Transactions on behalf of third parties Collections 168,353 160,367 Third-party resources managed by the Bank: Financial assets managed on behalf of third parties 7,121 27,334 Other assets managed on behalf of third parties — — Financial assets acquired on its own behalf 133,794 103,319 Fiduciary activities Securities held in safe custody in the Bank 5,738,873 6,930,293 Securities held in safe custody in other entities 14,990,439 13,783,748 Total 31,004,741 31,840,465 (b) Financial Guarantees As of December 31, 2017 and 2018, the expiration of financial guarantees per period is as follows: 2017 Due after 1 Due after 3 year but years but Due within 1 within 3 within 5 Due after 5 year years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ Performance guarantees 1,608,314 523,597 80,623 8,294 2,220,828 Foreign office guarantees and standby letters of credit 218,532 66,006 280 217 285,035 Total 1,826,846 589,603 80,903 8,511 2,505,863 2018 Due after 1 Due after 3 year but years but Due within 1 within 3 within 5 Due after 5 year years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ Performance guarantees 1,537,447 574,650 96,841 23,744 2,232,682 Foreign office guarantees and standby letters of credit 318,917 18,704 3,708 347 341,676 Total 1,856,364 593,354 100,549 24,091 2,574,358 (c) Lawsuits and legal proceedings: (c.1) Legal contingencies within the ordinary course of business: At the date of issuance of these consolidated financial statements, there are legal actions filed against the Bank and its subsidiaries in the ordinary course of business. As of December 31, 2018, the Bank and its subsidiaries maintain provisions for legal contingencies amounting to Ch$204 million (Ch$21,470 million as of December 31, 2017(*)), which are part of the item “Provisions” in the Statement of Financial Position. The following table presents the estimated date of completion of the respective litigation: As of December 31, 2018 2019 2020 2021 2022 Total MCh$ MCh$ MCh$ MCh$ MCh$ Legal contingencies 24 180 — — 204 (*)The trial in which the National Consumer Service brought a collective action against Banco de Chile ended by virtue of a conciliation agreement entered into between the parties on June 14, 2018, which was approved by the court by an executed resolution. (c.2) Contingencies for significant lawsuits: As of December 31, 2017 and 2018, there are not significant lawsuits that affect or may affect these Consolidated Financial Statements. (d) Guarantees granted: (i) In subsidiary Banchile Administradora General de Fondos S.A.: In compliance with article 12 of Law 20,712, Banchile Administradora General de Fondos S.A., has designated Banco de Chile as the representative of the beneficiaries of the guarantees it has established and in that character the Bank has issued bank guarantees totaling UF 2,977,300, maturing January 10, 2019 (UF 2,588,500 maturing January 10, 2018 in December 2017). The subsidiary took a policy with Mapfre Seguros Generales S.A. for the Real State Funds by a guaranteed amount of UF 586,200. As of December 31, 2017 and 2018 the Bank has no guaranteed mutual funds. In compliance with the rules established by the Superintendency of Securities and Insurance (“SVS”) (now the Chilean Commission for the Financial Market (“CMF”)) in letter f) of Circular 1,894 of September 24, 2008, the entity has constituted guarantees, by management portfolio, in benefit of investors. Such guarantee corresponds to a bank guarantee for UF 499,800, with a maturity date of January 10, 2019. (ii) In subsidiary Banchile Corredores de Bolsa S.A.: For the purposes of ensuring correct and complete compliance with all of its obligations as a broker-dealer entity, in conformity with the provisions of article 30 and subsequent articles of Law 18,045 on Securities Markets, Banchile Corredores de Bolsa S.A. established a guarantee in an insurance policy for UF 20,000, insured by Mapfre Seguros, that matures on April 22, 2020, whereby the Securities Exchange of the Santiago Stock Exchange was appointed as the subsidiary’s creditors to representative. The Bank has given the following guarantees in relation to this subsidiary’s business activities: 2017 2018 MCh$ MCh$ Guarantees: Shares to secure short-sale transactions in: Securities Exchange of the Santiago Stock Exchange 20,249 59,074 Securities Exchange of the Electronic Stock Exchange of Chile 29,926 17,223 Fixed income securities to ensure system CCLV, Santiago Securities Exchange, Stock Exchange 3,995 5,976 Shares delivered to ensure equity loan, Chilean Electronic Stock Exchange, Stock Exchange 3,864 — Total 58,034 82,273 In conformity with the internal regulation of the stock exchange in which this subsidiary participates, and for the purpose of securing the broker’s correct performance, the Company established a pledge over 1,000,000 shares of the Santiago Stock Exchange, in favor of that institution, as stated in the Public Deed dated September 13, 1990 before the notary of Santiago Mr. Raul Perry Pefaur, and over 100,000 shares of the Electronic Chilean Stock Exchange, in favor of that Institution, as stated in a contract signed between both entities dated May 16, 1990. Banchile Corredores de Bolsa S.A. keeps an insurance policy current with Southbridge Compañía de Seguros Generales S.A. that expires January 2, 2019, this considers matters of employee fidelity, physical losses, falsification or adulteration, and currency fraud with a coverage amount equivalent to US$ 10,000,000. According to disposition of Chilean Central Bank, it provided a bank guarantee corresponding to UF 10,500, with purposes to comply with the requirements of the SOMA contract (Contract for Service of System Open Market Operations) of the Chilean Central Bank. This bank guarantee is readjustable in UF to fixed term, non-endorsable and has a maturity date of July 22, 2019. It also provided a bank guarantee No. 359886-6 in the amount of UF 242,000 for the benefits of investors in portfolio management contracts. This bank guarantee is revaluated in UF to fixed term, non-endorsable and has a maturity date of January 10, 2019. It also provided a cash guarantee in the amount of US$122,494.32 for the purpose of complying with the obligations to Pershing, for any operations conducted through that broker. (iii) In subsidiary Banchile Corredores de Seguros Ltda. According to established in article No. 58, letter D of D.F.L. 251, as of December 31, 2018 the entity maintains two insurance policies with effect from April 15, 2018 to April 14, 2019 which protect it against of potential damages caused by infractions of the law, regulations and complementary rules that regulate insurance brokers, especially when the non-compliance comes from acts, errors or omissions of the broker, its representatives, agents or dependents that participate in the intermediation. The policies contracted are the following: Matter insured Amount Insured (UF) Responsibility for errors and omissions policy 60,000 Civil responsibility policy 500 (f) On October 30, 2014, the SVS (now the CMF) imposed a fine of UF 50,000 on Banchile Corredores de Bolsa S.A., for violation to de second paragraph of Article 53 of the Securities Market Law in relation to certain transaction of SQM-A’s shares intermediated by the Company in 2011. Banchile Corredores de Bolsa S.A., filed a claim in the 11th Civil Court of Santiago against Exempt Resolution N°270 of October 30, 2014 of the SVS (now the CMF), requesting the annulment of the fine. This claim was consolidated with the trial due No. 25,795-2014, of the 22nd Civil Court of Santiago. On December 10, 2018, the aforementioned Court summoned the parties to hear the sentence, which to date has not yet been dictated. According to the provisions policy of Banchile Corredores de Bolsa S.A., the company has not made provisions because in this judicial proceeding no judgment has yet been issued and the Bank’s legal advisors estimate that there are solid grounds for dismissal. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Equity | 29. Equity: (a) Authorized, subscribed and paid shares: As of December 31, 2018, the paid-in capital of Banco de Chile is represented by 101,017,081,114 registered shares (99,444,132,192 in 2017), with no par value, subscribed and fully paid. (b) Shares: (b.1) On July 12, 2018, Banco de Chile informed the capitalization of 40% of the distributable net income obtained during the fiscal year ended December 31, 2017, through the issuance of fully paid-in shares. This capitalization was approved at the Extraordinary Shareholders Meeting held on March 22, 2018, where it was agreed to increase the Bank´s capital in the amount of Ch$147,432,502,459 through the issuance of 1,572,948,922 fully paid-in shares, of no par value, payable through the distributable net income for the year 2017 that was not distributed as dividends, as agreed at the Ordinary Shareholders Meeting held on the same day. The issuance of fully in paid shares was registered in the Superintendency of Banks and Financial Institutions of Chile (“SBIF”) with the No.1/2018, on July 9, 2018. The Board of Directors of Banco de Chile, at the meeting No. 2,883, dated July 12, 2018, agreed to set July 26, 2018 as the date for the issuance and distribution of the fully paid in shares. (b.2) The following table shows the share movements from December 31, 2016 to December 31, 2018: Total Ordinary Shares Total shares as of December 31, 2016 97,624,347,430 Capitalization of retained earnings 1,819,784,762 Total shares as of December 31, 2017 99,444,132,192 Capitalization of retained earnings 1,572,948,922 Total Shares as of December 31, 2018 101,017,081,114 (c) Shareholders’ composition: As of December 31, 2017, the shareholder composition was as follows: % of Equity Corporate Name or Shareholder’s Name Shares Holding Sociedad Administradora de la Obligación Subordinada SAOS S.A. 28,593,701,789 28.75 LQ Inversiones Financieras S.A. 26,733,861,635 26.88 Sociedad Matriz del Banco de Chile S.A. 12,138,567,444 12.21 Other minority shareholders 31,978,001,324 32.16 Total 99,444,132,192 100.00 As of December 31, 2018, the shareholder composition was as follows: % of Equity Corporate Name or Shareholder’s Name Shares Holding Sociedad Administradora de la Obligación Subordinada SAOS S.A. 28,593,701,789 28.31 LQ Inversiones Financieras S.A. 27,460,203,382 27.18 Sociedad Matriz del Banco de Chile S.A. 12,138,573,251 12.02 Other minority shareholders 32,824,602,692 32.49 Total 101,017,081,114 100.00 (d) Approval and payment of dividends: At the Ordinary Shareholders’ Meeting held on March 22, 2018, the Bank's shareholders agreed to distribute and pay dividend No. 206 amounting to Ch$3.14655951692 per common share of Banco de Chile, with charge to net income for the year ended December 31, 2017. The amount of dividend paid was Ch$374,079 million. At the Ordinary Shareholders' Meeting held on March 23, 2017, the Bank’s shareholders agreed to distribute and pay dividend No. 205 amounting to Ch$2.92173783704 per common share of Banco de Chile, with charge to net income for the year ended December 31, 2016. The amount of dividend paid was Ch$342,034 million. The following dividends were declared and paid by the Bank for the year ended as of December 31, 2016, 2017 and 2018: 2016 2017 2018 Dividends on ordinary shares MCh$ (*) : 366,654 342,034 374,079 Dividends per ordinary share Ch$ (1) : 3.81 3.50 3.76 (*) This dividend per share is composed of the dividend paid to the Central Bank and common shareholders in the amounts of MCh$152,930 and MCh$221,149, respectively. The Central Bank has 29,161.4 million shares with a payment of Ch$5.2442658 per common share of Banco de Chile and for common shareholders the number of shares are 70,282.7 million with a payment of Ch$3.1465595 per common share of Banco de Chile. (1) Dividends per share are calculated by dividing the amount of the dividend paid during each year by the previous year’s number of shares outstanding. (e) Provision for minimum dividends: The Chilean Corporations Law mandates a minimum distribution of 30% of distributable income. Accordingly, the Bank recorded a liability under the line item “Provisions” for an amount of Ch$178,462 million (Ch$172,804 million in December 31, 2017) against “Retained earnings”. (f) Other comprehensive income: In accordance with Note No. 2(g) (iii), the fair market value adjustment for financial assets at fair value through other comprehensive income is generated by fluctuations in the fair value of that portfolio, with a charge or credit to equity, net of deferred taxes (see Note No. 13). For the year ended 2018, there was a net debit to equity in an amount of Ch$10,121 million (a net credit to equity for Ch$3,476 million in 2017). Cash flow hedge adjustment consists of the portion of income of hedge instruments registered in equity produced in a cash flow hedge. For the year ended December 31, 2018, there was a net debit to equity in an amount of Ch$22,589 million (a net credit to equity for Ch$11,158 million for the period 2017). (g) Earnings per share: Earnings per share is calculated by dividing the net profit for the year attributable to the ordinary equity holders of the Bank by the weighted average number of ordinary shares outstanding during the year. The following table shows the income and share data used in the calculation of EPS: As of December 31, 2016 2017 2018 Basic and diluted earnings per share: Net profits attributable to ordinary equity holders of the Bank MCh$ 575,051 572,080 603,633 Weighted average number of ordinary shares (*) 101,017,081,114 101,017,081,114 101,017,081,114 Earnings per share Ch$ 5.69 5.66 5.98 (*) During 2016, 2017 and 2018, the Bank capitalized 1,495,200,997, 1,819,784,762 and 1,572,948,922 shares respectively, which are considered in the earnings per share calculation as if they had been outstanding during all periods presented. During the periods presented the Bank did not have any instruments that could lead to a dilution of its ordinary shares. There have been no transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of the completion of these financial statements. |
Interest Revenue and Expenses
Interest Revenue and Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Interest Revenue and Expenses | |
Interest Revenue and Expenses | 30. Interest Revenue and Expenses: (a) As of each year end below, interest revenue is detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Commercial loans 856,172 786,794 851,328 Consumer loans 613,962 614,393 613,293 Residential mortgage loans 447,582 401,862 502,832 Financial investments 30,725 35,403 52,909 Repurchase agreements 9,053 7,337 2,767 Loans and advances to banks 32,280 15,024 24,138 Gain (loss) from accounting hedges (76,378) 20,722 (58,560) Other interest revenue 3,596 5,165 11,910 Total 1,916,992 1,886,700 2,000,617 The amount of interest recognized on a received basis for impaired portfolio in 2018 amounts to Ch$5,113 million (Ch$6,426 million as of December 31, 2017). (b) As of each year end below, interest expenses are detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Savings accounts and time deposits 376,541 297,277 301,251 Debt issued 309,589 268,203 352,351 Other financial obligations 1,916 1,640 1,482 Repurchase agreements 6,223 5,193 8,901 Borrowings from financial institutions 13,504 19,255 29,275 (Gain) loss from accounting hedges (24,190) 54,834 (23,694) Demand deposits 6,241 5,350 9,380 Other interest expenses 435 253 694 Total 690,259 652,005 679,640 (c) As of each year end below, loss from accounting hedge is the following: 2016 2017 2018 MCh$ MCh$ MCh$ Cash Flow hedge (45,559) (29,477) (33,031) Fair value hedge (6,629) (4,635) (1,835) Total (52,188) (34,112) (34,866) |
Income and Expenses from Fees a
Income and Expenses from Fees and Commissions | 12 Months Ended |
Dec. 31, 2018 | |
Income and Expenses from Fees and Commissions | |
Income and Expenses from Fees and Commissions | 31. Income and Expenses from Fees and Commissions: The income and expenses for fees and commissions shown in the Consolidated Statement of Comprehensive Income for the years ended December 31, 2016, 2017 and 2018 refer to the following items: 2016 2017 2018 MCh$ MCh$ MCh$ Income from fees and commissions Card services 144,007 155,572 167,201 Investments in mutual funds and other 79,853 86,103 91,173 Collections and payments 49,362 50,343 52,717 Portfolio management 39,838 43,915 46,730 Insurance brokerage 28,036 30,163 32,886 Guarantees and letter of credit 23,183 24,485 25,021 Trading and securities management 13,666 18,741 24,632 Use of distribution channel 18,996 18,204 20,974 Financial advisory services 4,152 5,536 5,046 Lines of credit and overdrafts 5,795 5,000 4,837 Other fees earned 34,155 33,640 33,897 Total income from fees and commissions 441,043 471,702 505,114 Expenses from fees and commissions Credit card transactions (98,115) (96,872) (113,403) Fees for interbank transactions (10,361) (13,189) (16,554) Fees for securities transactions (3,969) (6,802) (7,544) Fees for collections and payments (6,427) (6,206) (6,546) Sales force fees (408) (213) (258) Other fees (492) (746) (854) Total expenses from fees and commissions (119,772) (124,028) (145,159) |
Net Financial Operating Income
Net Financial Operating Income | 12 Months Ended |
Dec. 31, 2018 | |
Net Financial Operating Income | |
Net Financial Operating Income | 32. Net Financial Operating Income: The gain (losses) from trading and brokerage activities for the years ended December 31, 2016, 2017 and 2018 is detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Income on trading securities 42,415 46,207 42,605 Gain (loss) from mark to market 9,554 4,435 8,038 Financial assets held-for-trading 51,969 50,642 50,643 Sale of financial assets at fair value through other comprehensive income 65,320 6,514 1,118 Sale of loan portfolio 4,930 2,063 267 Net (loss) gain of other transactions 752 233 384 Derivative instruments 5,604 (89,113) 64,730 Total 128,575 (29,661) 117,142 |
Foreign Exchange Transactions,
Foreign Exchange Transactions, net | 12 Months Ended |
Dec. 31, 2018 | |
Foreign Exchange Transactions, net | |
Foreign Exchange Transactions, net | 33. Foreign Exchange Transactions, net: The detail of foreign exchange transactions for the years ended December 31, 2016, 2017 and 2018 is the following: 2016 2017 2018 MCh$ MCh$ MCh$ Gain (loss) from accounting hedges (90,370) (64,135) 118,690 Translation difference, net (6,074) (7,221) 9,609 Indexed foreign currency 108,849 176,231 (125,598) Total 12,405 104,875 2,701 |
Provisions for Loan Losses
Provisions for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for Loan Losses | |
Provisions for Loan Losses | 34. Provisions for Loan Losses: The changes in provisions for loan losses during 2016, 2017 and 2018 are the following: Loans and Loans to customers as of December 31, 2016 Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions — — — — — (5,944) (5,944) Group provisions — (45,462) (6,932) (261,838) (314,232) — (314,232) Provisions established net — (45,462) (6,932) (261,838) (314,232) (5,944) (320,176) Provisions released: Individual provisions 94 7,924 — — 7,924 2,575 10,593 Group provisions — — — — — 3,478 3,478 Provisions released net 94 7,924 — — 7,924 6,053 14,071 Recovery of written-off assets — 13,017 2,350 31,475 46,842 — 46,842 Provisions net allowances for credit risk 94 (24,521) (4,582) (230,363) (259,466) 109 (259,263) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2016 MCh$ Allowances established of loans to customer and loans and advances to banks (314,232) Allowances released of loans to customer and loans and advances to banks 8,018 Total allowances of loans to customer and loans and advances to banks (306,214) Loans and Loans to customers as of December 31, 2017 Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions (5) — — — — — (5) Group provisions — (47,837) (4,361) (247,810) (300,008) (3,131) (303,139) Provisions established net (5) (47,837) (4,361) (247,810) (300,008) (3,131) (303,144) Provisions released: Individual provisions — 28,571 — — 28,571 3,841 32,412 Group provisions — — — — — — — Provisions released net — 28,571 — — 28,571 3,841 32,412 Recovery of written-off assets — 13,750 3,246 32,481 49,477 — 49,477 Provisions net allowances for credit risk (5) (5,516) (1,115) (215,329) (221,960) 710 (221,255) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2017 MCh$ Allowances established of loans to customer and loans and advances to banks (300,013) Allowances released of loans to customer and loans and advances to banks 28,571 Total allowances of loans to customer and loans and advances to banks (271,442) Loans to customers as of December 31, 2018 Loans and Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions (240) — — — — (2,368) (2,608) Group provisions ― (61,702) (7,546) (241,244) (310,492) ― (310,492) Provisions established net (240) (61,702) (7,546) (241,244) (310,492) (2,368) (313,100) Provisions released: Individual provisions — 871 — — 871 — 871 Group provisions — — — — — 327 327 Provisions released net — 871 — — 871 327 1,198 Recovery of written-off assets — 13,579 4,572 42,428 60,579 — 60,579 Provisions net allowances for credit risk (240) (47,252) (2,974) (198,816) (249,042) (2,041) (251,323) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2018 MCh$ Allowances established of loans to customer and loans and advances to banks (310,732) Allowances released of loans to customer and loans and advances to banks 871 Total allowances of loans to customer and loans and advances to banks (309,861) |
Personnel Expenses
Personnel Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Personnel Expenses | |
Personnel Expenses | 35. Personnel Expenses: Personnel expenses for the year ended December 31, 2016, 2017 and 2018 are detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Remuneration 228,801 235,765 244,919 Bonuses and incentives 48,927 42,465 62,675 Variable Compensation 42,714 36,471 36,901 Lunch and health benefits 28,474 26,836 26,698 Gratifications 25,486 25,402 26,275 Staff severance indemnities 24,141 21,241 19,941 Training expenses 2,020 3,555 3,909 Other personnel expenses 17,355 17,596 19,312 Total 417,918 409,331 440,630 |
Administrative Expenses
Administrative Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Administrative Expenses | |
Administrative Expenses | 36. Administrative Expenses: For the year ended December 31, 2016, 2017 and 2018, administrative expenses are detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ General administrative expenses 209,304 211,611 231,458 Outsources services 46,923 51,949 50,898 Marketing expenses 32,781 30,698 31,375 Taxes, payroll taxes and contributions 14,161 14,242 14,937 Board expenses 3,175 2,955 2,809 Total 306,344 311,455 331,477 |
Depreciation, Amortization and
Depreciation, Amortization and Impairment | 12 Months Ended |
Dec. 31, 2018 | |
Depreciation, Amortization and Impairment | |
Depreciation, Amortization and Impairment | 37. Depreciation, Amortization and Impairment: (a) Amounts charged to income for depreciation and amortization during the year ended December 31, 2016, 2017 and 2018 are detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Depreciation and amortization Depreciation of property and equipment (Note No.16a and Note No. 17) 24,694 26,176 27,185 Amortization of intangibles assets (Note No.15a) 10,881 11,360 10,496 Total 35,575 37,536 37,681 (b) As of December 31, 2016, 2017 and 2018, the impairment loss is detailed as follows: 2016 2017 2018 MCh$ MCh$ MCh$ Impairment loss (Gain) loss on debt instruments at fair value through OCI — — (1,552) Impairment loss on property and equipment (Note No.16a) 274 166 334 Impairment loss on intangibles assets (Note No.15a) — — ― Total 274 166 (1,218) |
Other Operating Income
Other Operating Income | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Income | |
Other Operating Income | 38. Other Operating Income: During the year ended December 31, 2016, 2017 and 2018, the Bank and its subsidiaries presented the following under other operating income: 2016 2017 2018 MCh$ MCh$ MCh$ Rental income 8,671 8,863 9,013 Release of provisions for contingencies 120 160 7,526 Reimbursements for insurance policies 504 230 6,346 Expense recovery 3,275 4,372 4,218 Income for assets received in lieu of payment 2,978 1,941 3,650 Gain on sale of property and equipment 185 624 3,634 Recovery from correspondent banks 2,909 2,710 2,591 Credit card income 5,756 7,690 2,504 Other 4,177 3,369 5,813 Total 28,575 29,959 45,295 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Expenses | |
Other Operating Expenses | 39. Other Operating Expenses: During the year ended December 31, 2016, 2017 and 2018, the Bank and its subsidiaries incurred the following other operating expenses: 2016 2017 2018 MCh$ MCh$ MCh$ Write-offs for operating risks (*) 5,475 6,360 11,378 Operations expenses leasing 1,893 10,152 4,501 Card administration 3,921 2,890 2,640 Provisions for contingencies 6,880 — 3 Other 8,767 6,466 11,064 Total 26,936 25,868 29,586 (*) As a consequence of the technological security incident that affected the Bank on May 24, 2018, a net write-off has been recognized for external fraud committed directly against the Bank in its accounts held with foreign correspondent banks for Ch$6,002 million. As a result of the procedures of the insurance policies contracted to cover the losses associated with this type of events, at the end of the year were recognized revenues for the entirety of this amount. See Note No. 38 “Reimbursements for insurance policies”. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Related Party Transactions | 40. Related Party Transactions: Related parties are considered to be those natural or legal persons who are in positions to directly or indirectly have significant influence through their ownership or management of the Bank and its subsidiaries. According to the above, the Bank has considered as related parties those natural or legal persons who have a direct participation or through third parties on bank ownership, where such participation exceeds 5% of the shares, and also people who, regardless of ownership, have authority and responsibility for planning, management and control of the activities of the entity or its subsidiaries. There also are considered as related the companies in which the parties related by ownership or management of the bank have a share which reaches or exceeds 5%, or has the position of director, general manager or equivalent. (a) Loans to related parties: The following table details loans and accounts receivable and contingent loans, corresponding to related entities as of December 31, 2017 and 2018. Production and Services Investment Companies (*) Companies (**) Individuals (***) Total 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Loans and accounts receivable: Commercial loans 243,989 221,351 169,403 132,366 8,871 13,183 422,263 366,900 Residential mortgage loans — — — — 33,695 44,756 33,695 44,756 Consumer loans — — — — 7,265 10,074 7,265 10,074 Gross loans 243,989 221,351 169,403 132,366 49,831 68,013 463,223 421,730 Allowance for loan losses (988) (651) (394) (363) (241) (302) (1,623) (1,316) Net loans 243,001 220,700 169,009 132,003 49,590 67,711 461,600 420,414 Contingent loans: Guarantees and sureties 4,527 5,102 21,146 14,963 — — 25,673 20,065 Letters of credits 294 5,310 1,170 2,776 — — 1,464 8,086 Foreign letters of credits — — — — — — — — Banks guarantees 34,457 45,842 23,071 30,122 — — 57,528 75,964 Undrawn credit lines 53,151 58,041 13,907 14,674 15,179 19,160 82,237 91,875 Other contingencies loans — — — — — — — — Total contingent loans 92,429 114,295 59,294 62,535 15,179 19,160 166,902 195,990 Provision for contingencies loans (217) (118) (81) (38) (48) (17) (346) (173) Contingent loans, net 92,212 114,177 59,213 62,497 15,131 19,143 166,556 195,817 Amount covered by guarantee: Mortgage 27,928 28,208 53,835 52,108 53,181 69,292 134,944 149,608 Warrant — — — — — — — — Pledge 1,417 — — — — — 1,417 — Others (****) 39,022 47,135 14,186 13,219 2,175 3,694 55,383 64,048 Total collateral 68,367 75,343 68,021 65,327 55,356 72,986 191,744 213,656 (*) For these effects are considered productive companies, those that meet the following conditions: (i) They engage in operating activities and generate a separable flow of income, (ii) Less than 50% of their assets are trading securities or investments. Service companies are considered entities whose main purpose is oriented to rendering services to third parties. (**) Investment companies include those legal entities that do not comply with the conditions for operating companies and are profit-oriented. (***)Individuals include key members of the management and correspond to those who directly or indirectly have authority and responsibility for planning, administrating and controlling the activities of the organization, including directors. This category also includes their family members who influence or are influenced by such individuals in their interactions with the organization. (****) These guarantees correspond mainly to shares and other financial guarantees. (b) Other assets and liabilities with related parties as of December 31, 2017 and 2018: 2017 2018 MCh$ MCh$ Assets Cash and due from banks 57,563 23,086 Transactions in the course of collection 13,249 35,469 Financial assets held-for-trading — 205 Derivative instruments 323,186 415,683 Financial assets — 14,690 Other assets 114,536 80,569 Total 508,534 569,702 Liabilities Demand deposits 173,715 169,607 Transactions in the course of payment 16,116 58,987 Cash collateral on securities lent and repurchase agreements 25,227 84,465 Savings accounts and time deposits 169,322 124,362 Derivative instruments 370,356 337,299 Borrowings from financial institutions 251,555 228,269 Other liabilities 51,814 115,145 Total 1,058,105 1,118,134 (c) Income and expenses from related party transactions during the year ended December 31, 2017 and 2018: 2017 2018 Income Expense Income Expense Type of income or expense recognized MCh$ MCh$ MCh$ MCh$ Interest and revenue expenses 26,485 9,332 21,736 7,196 Fees and commission income 65,995 69,843 70,286 74,205 Net financial operating income Derivative instruments (*) 33,540 97,416 85,500 42,365 Other financial operations 1 — — — Release or established of provision for credit risk — 252 — 28 Operating expenses — 100,389 — 105,734 Other income and expenses 3,723 56 446 45 (*) The outcome of derivative operations is presented net at each related counterparty level. Additionally, this line includes operations with local counterpart banks (unrelated) which have been novated by Comder Contraparte Central S.A. (Related entity) for centralized clearing purposes, which generated a net loss of Ch$71,297 million as of December 31, 2018 (net loss of Ch$96,075 million as of December 31, 2017). (d) Payments to key management personnel: 2017 2018 MCh$ MCh$ Remunerations 4,149 3,926 Short-term benefits 3,302 3,476 Contract termination indemnity 276 1,037 Stock−based benefits — — Total 7,727 8,439 Composition of key personnel: N° of executives Position 2017 2018 CEO 1 1 CEOs of subsidiaries 6 6 Division Managers 12 13 Total 19 20 (e) Directors’ expenses and remunerations during the year ended December 31, 2017 and 2018: Fees for attending Committees and Fees for attending Subsidiary Board Remunerations Board meetings meetings (1) Consulting Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Name of Directors MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Pablo Granifo Lavín 553 (*) 569 (*) 53 56 395 374 — — 1,001 999 Andrónico Luksic Craig 172 176 8 10 — — — — 180 186 Jaime Estévez Valencia 57 59 28 29 134 134 — — 219 222 Gonzalo Menéndez Duque 57 59 23 27 113 119 8 — 201 205 Francisco Pérez Mackenna 57 59 23 20 75 58 — — 155 137 Rodrigo Manubens Moltedo 57 59 28 28 53 54 — — 138 141 Thomas Fürst Freiwirth 57 59 19 21 36 42 — — 112 122 Jean-Paul Luksic Fontbona 57 59 12 11 — — — — 69 70 Andrés Ergas Heymann 43 59 20 27 41 70 — — 104 156 Alfredo Ergas Segal 43 59 20 27 49 71 — — 112 157 Jorge Awad Mehech 14 — 6 — 26 — — — 46 — Jorge Ergas Heymann 14 — 6 — 19 — — — 39 — Other directors of subsidiaries — — — — 129 116 — — 129 116 Total 1,181 1,217 246 256 1,070 1,038 8 — 2,505 2,511 (1) It includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda. of Ch$12 million (Ch$18 million in 2017). (*) It includes a provision of Ch$391 million (Ch$380 million in 2017) for an incentive subject to achieving the Bank’s forecasted earnings. Fees paid for advisory services to the Board of Directors amount to Ch$206 million (Ch$334 million in 2017). Travel and other related expenses amount to Ch$92 million (Ch$116 million in 2017). |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Assets and Liabilities | |
Fair Value of Financial Assets and Liabilities | 41. Fair Value of Financial Assets and Liabilities: Banco de Chile and its subsidiaries have defined a corporate framework for valuation and control related with the process to the fair value measurement. Within the established framework includes the Product Control Unit (PCU), which is independent of the business areas and reports to the Financial Management and Control Division Manager. The Financial Control and Treasury Area, through the Financial Risk Information and Control Section is responsible for independent verification of the results of trading and investment operations and all fair value measurements. To achieve the appropriate measurements and controls, the Bank and its subsidiaries, take into account at least the following aspects: (i) Industry standard valuation. To value financial instruments, Banco de Chile uses industry standard modeling and inputs, including; quota value, share price, discounted cash flows and valuation of options through Black-Scholes-Merton. The input parameters for the valuation correspond to rates, prices and levels of volatility for different terms and market factors that are traded in the national and international market and that are provided by main sources of the market. (ii) Quoted prices in active markets. The fair value for instruments with quoted prices in active markets is determined using daily quotes from electronic systems information (such as Bolsa de Comercio de Santiago, Bloomberg, LVA and Risk America, etc .). This quote represents the price at which these instruments are regularly traded in the financial markets. (iii) Valuation techniques. If no quotes are available for the instrument to be valued, valuation techniques will be used to determine the fair value. Due to the fact that , in general, the valuation models require a set of market parameters as inputs, the aim is to maximize information based on observable or prices-related quotations for similar instruments in active markets. To the extent there is no information available in active markets, data from external suppliers of market information, prices of similar transactions and historical information are used to validate the valuation parameters. (iv) Fair value adjustments. Part of the fair value process considers two adjustments to the market value of each instrument calculated based on the market parameters. The Bid/offer adjustment represents the impact on the valuation of an instrument depending on whether corresponds to a long or purchased position or if the position corresponds to a short or sold position. To calculate this adjustment is used the active market prices or indicative prices depending on the instrument, considering the Bid, Mid and Offer, respectively. Finally, an adjustment is made for CVA and DVA, defined as the credit risk recognition of the issuer, either of the counterparty (CVA) or of Banco de Chile (DVA). (v) Fair value control. A process of independent verification of prices and rates is executed daily, in order to control the market parameters used by Banco de Chile in the valuation of the financial instruments relating to the current state of the market and the best estimate of the fair value. The objective of this process is to control that the official market parameters provided by the respective business area, before being entered into the valuation, are within acceptable ranges of differences when compared to the parameters prepared independently by the Financial Risk Information and Control Section. As a result, value differences are obtained at the level of currency, product and portfolio, which are compared against specific ranges for each grouping level, which are reviewed and validated by the Bank with certain periodicity. In the event significant differences exist, these differences are scaled according to the amount of individual materiality of each market factor and aggregated at the portfolio level, according to the grouping levels within previously defined ranges. These ranges are approved by the Finance, International and Financial Risk Committee. Complementary and in parallel, the Financial Risk Information and Control Section generates and reports on a daily basis Profit or Loss (“P&L”) and Exposure to Market Risks, which allow for proper control and consistency of the parameters used in the valuation. (vi) Judgmental analysis and information to Management. In particular, in cases where there are no market quotations for the instrument to be valued and there are no prices for similar transactions or indicative parameters, a specific controls and reasoned analysis must be carried out in order to estimate the fair value of the operation. Within the valuation framework described in the Reasonable Value Policy approved by the Board of Directors of Banco de Chile, a required level of approval is set in order to carry out transactions where market information is not available or it is not possible to infer prices or rates from it. (a) Fair value hierarchy Banco de Chile and its subsidiaries, classify all the financial instruments among the following levels: Level 1: These are financial instruments whose fair value is realized at quoted prices (unadjusted) in active markets for identical assets or liabilities. For these instruments there are observable market prices (return internal rates, quote value, price), so that assumptions are not required to determine the value. In this level, the following instruments are considered: currency futures, Chilean Central Bank and Treasury securities, mutual fund investments and equity shares. For the instruments of the Central Bank of Chile and the General Treasury of the Republic, all those mnemonics belonging to a Benchmark, in other words corresponding to one of the following categories published by the Santiago Stock Exchange, will be considered as Level 1: Pesos-02, Pesos-03, Pesos-04, Pesos-05, Pesos-07, Pesos-10, UF-02, UF-04, UF-05, UF-07, UF-10, UF-20 and UF-30. A Benchmark corresponds to a group of mnemonics that are similar in duration and are traded in an equivalent way, i.e., the price obtained is the same for all the instruments that make up a Benchmark. This feature defines a greater depth of market, with daily quotations that allow classifying these instruments as Level 1. In the case of debt issued by the Government, the internal rate of return of the market is used to discount all flows to present value. In the case of mutual funds and equity shares, the current market price multiplied by the number of instruments results in the fair value. The preceding described valuation methodology is equivalent to the one used by the Bolsa de Comercio de Santiago (Santiago Stock Exchange) and corresponds with the standard methodology used in the market and is in accordance with standards used in IFRS. Level 2: There are financial instruments whose fair value is obtained with variables other than the prices quoted in Level 1 that are observable for the asset or liability, directly (that is, as prices) or indirectly (that is, derived from prices). These categories include: a) Quoted prices for similar assets or liabilities in active markets. b) Quoted prices for identical or similar assets or liabilities in markets that are not active. c) Inputs data other than quoted prices that are observable for the asset or liability. d) Inputs data corroborated by the market. At this level there are mainly derivatives instruments, debt issued by banks, debt issues of Chilean and foreign companies, issued in Chile or abroad, mortgage claims, financial brokerage instruments and some issuances by the Central Bank of Chile and the General Treasury of Chile. To value derivatives, depends on whether they are impacted by volatility as a relevant market factor in standard valuation methodologies; for options the Black-Scholes-Merton formula is used; for the rest of the derivatives, forwards and swaps, net present value through discounted cash flows is used. For the remaining instruments at this level, as for debt issues of level 1, the valuation is done through cash flows model by using an estimated yield to maturity that can be derived or estimated from similar securities as mentioned above. In the event that there is no observable price for an instrument in a specific term, the price will be inferred from the interpolation between periods that have observable quoted price in active markets. These models incorporate various market variables, including the credit quality of counterparties, exchange rates and interest rate curves. Valuation Techniques and Inputs for Level 2 Instrument: Type of Financial Instrument Valuation Method Description: Inputs and Sources Local Bank and Corporate Bonds Discounted cash Prices are provided by third party price providers that are widely used in the Chilean market. Model is based on a Base Yield (Central Bank Bonds) and issuer spread. The model is based on daily prices and risk/maturity similarities between Instruments. Offshore Bank and Corporate Bonds Prices are provided by third party price providers that are widely used in the Chilean market. Local Central Bank and Treasury Bonds Prices are provided by third party price providers that are widely used in the Chilean market. Mortgage Notes Prices are provided by third party price providers that are widely used in the Chilean market. Time Deposits Prices are provided by third party price providers that are widely used in the Chilean market. Cross Currency Swaps, Interest Rate Swaps, FX Forwards, Inflation Forwards Forward Points, Inflation forecast and local swap rates are provided by market brokers that are widely used in the Chilean market Offshore rates and spreads are obtained from third party price providers that are widely used in the Chilean market. Zero Coupon rates are calculated by using the bootstrapping method over swap rates. FX Options Black-Scholes Prices for volatility surface estimates are obtained from market brokers that are widely used in the Chilean market. Level 3: These are financial instruments whose fair value is determined using non-observable inputs data. An adjustment to an input that is significant to the entire measurement can result in a fair value measurement classified within Level 3 of the fair value hierarchy, if the adjustment uses significant non-observable data entry. The instruments likely to be classified as level 3 are mainly Corporate Debt by Chilean and foreign companies, issued both in Chile and abroad. Valuation Techniques and Inputs for Level 3 Instrument: Type of Financial Instrument Valuation Method Description: Inputs and Sources Local Bank and Corporate Bonds Discounted cash flows model Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (Central Bank Bonds) and issuer spread. These inputs (base yield and issuer spread) are provided on a daily basis by third party price providers that are widely used in the Chilean market. Offshore Bank and Corporate Bonds Discounted cash flows model Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (US-Libor) and issuer spread. These inputs (base yield and issuer spread) are provided on a weekly basis by third party price providers that are widely used in the Chilean market. (a) Level hierarchy classification and figures: The following table shows the figures by hierarchy, for instruments recorded at fair value in the statement of financial position as of December 31, 2017 and 2018. Level 1 Level 2 Level 3 Total 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading From the Chilean government and Central Bank 623,276 178,692 693,888 1,344,780 — — 1,317,164 1,523,472 Mutual fund investments ― 87,841 ― ― — — ― 87,841 Other instruments issued in Chile 714 1,663 212,366 107,078 8,012 20,866 221,092 129,607 Instruments issued abroad 322 4,446 ― ― — — 322 4,446 Subtotal 624,312 272,642 906,254 1,451,858 8,012 20,866 1,538,578 1,745,366 Derivative contracts for trading purposes Forwards — — 506,614 735,444 — — 506,614 735,444 Swaps — — 710,123 738,130 — — 710,123 738,130 Call options — — 514 4,839 — — 514 4,839 Put options — — 2,841 120 — — 2,841 120 Futures — — ― ― — — ― ― Subtotal — — 1,220,092 1,478,533 — — 1,220,092 1,478,533 Hedge derivative contracts Fair value hedge (Swaps) — — 277 1,116 — — 277 1,116 Cash flow hedge (Swaps) — — 27,572 34,298 — — 27,572 34,298 Subtotal — — 27,849 35,414 — — 27,849 35,414 Total — — 1,247,941 1,513,947 — — 1,247,941 1,513,947 Financial assets available-for-sale From the Chilean government and Central Bank 229,296 — 127,072 — — — 356,368 — Other instruments issued in Chile ― — 1,122,648 — 46,265 — 1,168,913 — Instruments issued abroad 984 — ― — 50 — 1,034 — Subtotal 230,280 — 1,249,720 — 46,315 — 1,526,315 — Financial assets at fair value through other comprehensive income Debt instruments (1): From the Chilean government and Central Bank — 99,132 — 65,090 — — — 164,222 Instruments issued in Chile — ― — 747,653 — 23,021 — 770,674 Instruments issued abroad — ― — 108,544 — ― — 108,544 Subtotal — 99,132 — 921,287 — 23,021 — 1,043,440 Equity instruments: Instruments issued in Chile — ― — 8,939 — — — 8,939 Instruments issued abroad — 723 — ― — 89 — 812 Subtotal — 723 — 8,939 — 89 — 9,751 Total 230,280 99,855 1,249,720 930,226 46,315 23,110 1,526,315 1,053,191 Other assets Mutual fund investments 78,069 — — — — — 78,069 — Subtotal 78,069 — — — — — 78,069 — Total 932,661 372,497 3,403,915 3,896,031 54,327 43,976 4,390,903 4,312,504 Financial liabilities Derivative contracts for trading purposes Forwards — — 575,137 631,089 — — 575,137 631,089 Swaps — — 727,765 854,708 — — 727,765 854,708 Call options — — 472 2,921 — — 472 2,921 Put options — — 3,403 1,534 — — 3,403 1,534 Futures — — ― ― — — — ― Subtotal — — 1,306,777 1,490,252 — — 1,306,777 1,490,252 Hedge derivative contracts Fair value hedge (Swaps) — — 5,330 6,164 — — 5,330 6,164 Cash flow hedge (Swaps) — — 80,888 31,818 — — 80,888 31,818 Subtotal — — 86,218 37,982 — — 86,218 37,982 Total — — 1,392,995 1,528,234 — — 1,392,995 1,528,234 (1) As of December 31, 2018, 80% of instruments of level 3 has denomination “Investment Grade”. Also, 100% of total of these financial instruments correspond to domestic issuers. (b) Level 3 Reconciliation The following tables show the reconciliation between the beginning and ending balances of instruments classified as Level 3, whose fair value is reflected in the financial statements. 2017 Gain (Loss) Gain (Loss) Balance as of Balance as of Recognized in Recognized in Transfer from Transfer to December January 1, 2017 Income (1) Equity (2) Purchases Sales Level 1 and 2 Level 1 and 2 31, 2017 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading: Other instruments issued in Chile 8,960 (7) — 7,446 (10,772) 2,385 — 8,012 Subtotal 8,960 (7) — 7,446 (10,772) 2,385 — 8,012 Financial assets available-for-sale: Other instruments issued in Chile 76,005 (4,186) 1,137 4,922 (28,604) 2,672 (5,681) 46,265 Instruments issued abroad 54 — (4) — — — — 50 Subtotal 76,059 (4,186) 1,133 4,922 (28,604) 2,672 (5,681) 46,315 Total 85,019 (4,193) 1,133 12,368 (39,376) 5,057 (5,681) 54,327 2018 Gain (Loss) Gain (Loss) Balance as of Balance as of Recognized in Recognized in Transfer from Transfer to December 31, January 1, 2018 Income (1) Equity (2) Purchases Sales Level 1 and 2 Level 1 and 2 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading: Other instruments issued in Chile 8,012 176 — 48,740 (36,062) — — 20,866 Subtotal 8,012 176 — 48,740 (36,062) — — 20,866 Financial assets at fair value through OCI: Debt instruments: Instruments issued in Chile 46,265 2,539 (292) — (20,520) — (4,971) 23,021 Equity instruments: Instruments issued abroad 50 — 39 — — — — 89 Subtotal 46,315 2,539 (253) — (20,520) — (4,971) 23,110 Total 54,327 2,715 (253) 48,740 (56,582) — (4,971) 43,976 (1) It is recorded in the income statement under “Net financial operating income” (2) It is recorded in Equity under “Other Comprehensive Income” (c) Transfers between levels: The following tables show transfers between levels for financial assets and liabilities whose fair value is recorded in the consolidated financial statements: Transfers from level 1 to level 2 2017 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank 4,688 Instruments issued abroad From the Chilean Government and Central Bank — Transfers from level 2 to level 1 2017 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank 3,498 Instruments issued abroad From the Chilean Government and Central Bank 4,373 Transfers from level 1 to level 2 2018 Financial assets MCh$ Financial assets held-for-trading instruments 496 From the Chilean Government and Central Bank Financial assets at fair value through OCI From the Chilean Government and Central Bank 9,444 Transfers from level 2 to level 1 2018 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank — Financial assets at fair value through OCI From the Chilean Government and Central Bank — (d) Sensitivity of level 3 instruments to changes in key assumptions of the input parameters for the valuation model: The following table shows the impact on the fair value of Level 3 financial instruments using alternative assumptions that are reasonably possible. It is believed that the positive and negative impacts are similar: As of December 31, 2017 As of December 31, 2018 Sensitivity to Sensitivity to changes in key changes in key assumptions of assumptions of Level 3 models Level 3 models Financial Assets MCh$ MCh$ MCh$ MCh$ Financial assets held-for-trading Other instruments issued in Chile 8,012 (26) 20,866 (26) Subtotal 8,012 (26) 20,866 (26) Financial assets available-for-sale Other instruments issued in Chile 46,265 (417) — — Instruments issued abroad 50 — — — Subtotal 46,315 (417) — — Financial assets at fair value through OCI Debt instrument: Other instruments issued in Chile — — 23,021 (195) Equity instrument: Instruments issued abroad — — 89 — Subtotal — — 23,110 (195) Total 54,327 (443) 43,976 (221) With the purpose to determine the sensitivity of the financial investments to changes in significant market factors, the Bank has made alternative calculations at fair value, changing those key parameters for the valuation and which are not directly observable in screens. In the case of financial assets presented in the table above, which corresponds to bank bonds and corporate bonds, input prices, prices based on broker quotes or runs were used, considering that these instruments do not have current prices or observables. Prices are generally calculated as a base rate plus a spread. For local bonds, this was determined by applying only a 10% impact on the price, while for offshore bonds this was determined by applying only a 10% impact on the spread because the base rate is hedged with instruments on interest rate swaps so-called hedge accounting. The impact of 10% is considered a reasonable move considering the market performance of these instruments and comparing it against the adjustment bid/offer that is provided for by these instruments. (e) Other assets and liabilities not measured at fair value: The following table summarizes the fair values of the Bank’s main financial assets and liabilities that are not recorded at fair value in the Statement of Financial Position. The values shown in this note do not attempt to estimate the value of the Bank’s income-generating assets, nor forecast their future behavior. The estimated fair value is as follows: Book Value Fair Value 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 880,081 1,057,393 880,081 Transactions in the course of collection 255,968 289,194 255,968 289,194 Cash collateral on securities borrowed and reverse repurchase agreements 91,641 97,289 91,641 97,289 Subtotal 1,405,002 1,266,564 1,405,002 1,266,564 Loans and advances to banks Domestic banks 119,998 99,776 119,998 99,776 Chilean Central Bank 350,916 1,100,831 350,916 1,100,831 Foreign banks 289,107 293,777 289,107 286,063 Subtotal 760,021 1,494,384 760,021 1,486,670 Loans to customers, net Commercial loans 13,739,589 15,209,534 13,477,466 14,949,852 Residential mortgage loans 7,445,221 8,017,743 7,769,694 8,451,099 Consumer loans 3,770,882 4,113,977 3,773,005 4,116,261 Subtotal 24,955,692 27,341,254 25,020,165 27,517,212 Total 27,120,715 30,102,202 27,185,188 30,270,446 Liabilities Current accounts and other demand deposits 8,915,706 9,584,488 8,915,706 9,584,488 Transactions in the course of payment 29,871 44,436 29,871 44,436 Cash collateral on securities lent and reverse repurchase agreements 195,392 303,820 195,392 303,820 Saving accounts and time deposits 10,067,778 10,656,174 10,073,030 10,632,350 Borrowings from financial institutions 1,195,028 1,516,759 1,188,943 1,506,940 Other financial obligations 137,163 118,014 137,163 119,024 Subtotal 20,540,938 22,223,691 20,540,105 22,191,058 Debt issued Letters of credit for residential purposes 21,059 15,040 22,542 15,982 Letters of credit for general purposes 2,365 1,328 2,532 1,411 Bonds 5,769,334 6,772,990 5,896,424 6,897,317 Subordinated bonds 696,217 686,194 699,926 732,611 Subtotal 6,488,975 7,475,552 6,621,424 7,647,321 Total 27,029,913 29,699,243 27,161,529 29,838,379 Other financial assets and liabilities not measured at their fair value, but for which a fair value is estimated, even if not managed based on such value, include assets and liabilities such as placements, deposits and other time deposits, debt issued, and other financial assets and obligations with different maturities and characteristics. The fair value of these assets and liabilities is calculated using the Discounted Cash Flow model and the use of various data sources such as yield curves, credit risk spreads, etc. In addition, due to some of these assets and liabilities are not traded on the market, periodic reviews and analyzes are required to determine the suitability of the inputs and determined fair values. (f) Levels of other assets and liabilities: The table below sets forth the fair value of Financial Assets/Liabilities not measured at fair value on the balance sheet, for the years ended December 31, 2017 and 2018: Level 1 Level 2 Level 3 Total Estimated Fair Value Estimated Fair Value Estimated Fair Value Estimated Fair Value 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 880,081 — — — — 1,057,393 880,081 Transactions in the course of collection 255,968 289,194 — — — — 255,968 289,194 Receivables from repurchase agreements and security borrowing 91,641 97,289 — — — — 91,641 97,289 Subtotal 1,405,002 1,266,564 — — — — 1,405,002 1,266,564 Loans and advances to banks Domestic banks 119,998 99,776 — — — ― 119,998 99,776 Central bank 350,916 1,100,831 — — — ― 350,916 1,100,831 Foreign banks 289,107 — — — — 286,063 289,107 286,063 Subtotal 760,021 1,200,607 — — — 286,063 760,021 1,486,670 Loans to customers, net Commercial loans — — — — 13,477,466 14,949,852 13,477,466 14,949,852 Residential mortgage loans — — — — 7,769,694 8,451,099 7,769,694 8,451,099 Consumer loans — — — — 3,773,005 4,116,261 3,773,005 4,116,261 Subtotal — — — — 25,020,165 27,517,212 25,020,165 27,517,212 Total 2,165,023 2,467,171 — — 25,020,165 27,803,275 27,185,188 30,270,446 Liabilities Current accounts and other demand deposits 8,915,706 9,584,488 — — — — 8,915,706 9,584,488 Transactions in the course of payment 29,871 44,436 — — — — 29,871 44,436 Payables from repurchase agreements and security lending 195,392 303,820 — — — — 195,392 303,820 Savings accounts and time deposits — — — — 10,073,030 10,632,350 10,073,030 10,632,350 Borrowings from financial institutions — — — — 1,188,943 1,506,940 1,188,943 1,506,940 Other financial obligations 137,163 — — — ― 119,024 137,163 119,024 Subtotal 9,278,132 9,932,744 — — 11,261,973 12,258,314 20,540,105 22,191,058 Debt Issued Letters of credit for residential purposes — — 22,542 15,982 — ― 22,542 15,982 Letters of credit for general purposes — — 2,532 1,411 — ― 2,532 1,411 Bonds — — 5,896,424 6,897,317 — ― 5,896,424 6,897,317 Subordinate bonds — — — ― 699,926 732,611 699,926 732,611 Subtotal — — 5,921,498 6,914,710 699,926 732,611 6,621,424 7,647,321 Total 9,278,132 9,932,744 5,921,498 6,914,710 11,961,899 12,990,925 27,161,529 29,838,379 We estimate fair values for these assets/liabilities, as follows: · Short-Term Financial Assets/Liabilities: For assets and liabilities with no specific maturity (on demand) or terms of less than three months we use the carrying or book values as proxies of their fair value, since their tenors are not believed to significantly affect their valuation. As a result, these assets/liabilities are categorized in Level 1. This assumption is applied to the following assets/liabilities: Assets Liabilities - Cash and due from banks - Current accounts and other demand deposits - Transactions in the course of collection - Transactions in the course of payments - Cash collateral on securities borrowed and reverse repurchase agreements - Cash collateral on securities loaned and repurchase agreements - Loans and advance to domestic banks · Loans to Customers and Foreign Banks: Fair value is determined by using the discounted cash flow model and internally generated discount rates, based on internal transfer rates derived from our internal transfer price policy. Once the present value is determined, we deduct the related loan loss allowances in order to incorporate the credit risk associated with each contract or loan. As we use internally generated parameters for valuation purposes, we categorize these instruments in Level 3. · Letters of Credit and Bonds: In order to determine the present value of contractual cash flows, we apply the DCF model by using market interest rates that are available in the market, either for the instruments under valuation or instruments with similar features that fit valuation needs in terms of currency, maturities and liquidity. The market interest rates are obtained from third party price providers widely used by the market. As a result of the valuation technique and the quality of inputs (observable) used for valuation, we categorize these financial liabilities in Level 2. · Saving Accounts, Time Deposits, Borrowings from Financial Institutions , other financial obligations and Subordinated Bonds: The DCF model is used to obtain the present value of committed cash flows by applying a bucket approach and average adjusted discount rates that are derived from both market rates for instruments with similar features and our transfer price policy. As we use internally generated parameters and/or apply significant judgmental analysis for valuation purposes, we categorize these financial assets/liabilities in Level 3. (g) Offsetting of financial assets and liabilities: In accordance with IAS 32 Financial Instruments: Presentation, the Bank should report financial assets and financial liabilities on a net basis on the balance sheet only if there is a legally enforceable right to set off the recognized amounts and there is intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. Because Bank’s netting agreements do not qualify for balance sheet netting, it presents its financial instruments on a gross basis on the balance sheet. The following table shows the impact of netting arrangements on all derivative financial instruments that are subject to enforceable master netting agreements or similar agreements (including financial collaterals), but do not qualify for balance sheet netting. The “Net amounts” presented below are not intended to represent the Bank’s actual exposure to credit risk, as a variety of credit mitigation strategies are employed in addition to netting and collateral arrangements. Effect of offsetting on balance sheet Related amount not offset Net amounts reported Gross amount Amounts offset on the balance sheet Financial Instruments Financial Collateral Net amount As of December 31, 2017 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Derivative financial assets 1,247,941 — 1,247,941 (600,439) (34,212) 613,290 Derivative financial liabilities 1,392,995 — 1,392,995 (600,439) (83,523) 709,033 Effect of offsetting on balance sheet Related amount not offset Net amounts reported Gross amount Amounts offset on the balance sheet Financial Instruments Financial Collateral Net amount As of December 31, 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Derivative financial assets 1,513,947 — 1,513,947 (1,007,130) (30,036) 476,781 Derivative financial liabilities 1,528,234 — 1,528,234 (1,007,130) (233,450) 287,654 Derivative assets and liabilities The “Financial Instruments” column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA Master Agreement of derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty could be offset and close-out netting applied across all outstanding transaction covered by the agreements if an event of default or other predetermined events occur (“early contract termination”). Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by enabling the collateral to be realized in an event of default or if other predetermined events occur (“early contract termination”). |
Maturity of Assets and Liabilit
Maturity of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Maturity of Assets and Liabilities | |
Maturity of Assets and Liabilities | 42. Maturity of Assets and Liabilities: The table below shows the classification of assets and liabilities as current and non-current as the balance sheet is presented in the order of liquidity without indicating this information. As of December 31, 2017 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 — 1,057,393 Transactions in the course of collection 255,968 — 255,968 Financial assets held-for-trading 1,538,578 — 1,538,578 Receivables from repurchase agreements and security borrowing 91,641 — 91,641 Derivative instruments 626,029 621,912 1,247,941 Loans in advance to banks (*) 729,434 30,851 760,285 Loans to customers (*) 9,823,290 15,628,223 25,451,513 Financial assets available-for-sale 1,044,832 481,483 1,526,315 Investments in other companies — 35,771 35,771 Intangible assets — 72,455 72,455 Property and equipment — 216,259 216,259 Investment properties — 14,306 14,306 Current tax assets 23,032 — 23,032 Deferred tax assets, net — 161,265 161,265 Other assets 110,662 494,138 604,800 Total Assets 15,300,859 17,756,663 33,057,522 As of December 31, 2018 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Assets Cash and due from banks 880,081 — 880,081 Transactions in the course of collection 289,194 — 289,194 Financial assets held-for-trading 1,745,366 — 1,745,366 Receivables from repurchase agreements and security borrowing 97,289 — 97,289 Derivative instruments 776,815 737,132 1,513,947 Loans in advance to banks (*) 1,471,955 23,441 1,495,396 Loans to customers (*) 11,070,708 16,855,924 27,926,632 Financial assets at fair value through OCI 606,880 446,311 1,053,191 Investments in other companies — 42,252 42,252 Intangible assets — 85,471 85,471 Property and equipment — 215,872 215,872 Investment properties — 13,938 13,938 Current tax assets 677 — 677 Deferred tax assets, net — 192,840 192,840 Other assets 28,478 623,213 651,691 Total Assets 16,967,443 19,236,394 36,203,837 (*) The respective provisions, which amount to Ch$495,821 million and Ch$585,378 million in 2017 and 2018, respectively, for loans to customers and Ch$264 million and Ch$1,012 million for loans and advances to banks, have not been deducted from these balances. As of December 31, 2017 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Liabilities Current accounts and other demand deposits 8,915,706 — 8,915,706 Transactions in the course of payment 29,871 — 29,871 Payables from repurchase agreements and security lending 195,392 — 195,392 Saving accounts and time deposits 9,831,087 236,691 10,067,778 Derivative instruments 653,073 739,922 1,392,995 Borrowings from financial institutions 1,121,026 74,002 1,195,028 Debt issued 1,076,689 5,412,286 6,488,975 Other financial obligations 119,499 17,664 137,163 Current tax liabilities — 3,453 3,453 Provisions 194,073 464 194,537 Employee benefits 25,159 61,469 86,628 Other liabilities 49,672 258,891 308,563 Total Liabilities 22,211,247 6,804,842 29,016,089 As of December 31, 2018 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Liabilities Current accounts and other demand deposits 9,584,488 — 9,584,488 Transactions in the course of payment 44,436 — 44,436 Payables from repurchase agreements and security lending 303,820 — 303,820 Saving accounts and time deposits 10,065,943 590,231 10,656,174 Derivative instruments 719,300 808,934 1,528,234 Borrowings from financial institutions 1,437,461 79,298 1,516,759 Debt issued 1,243,357 6,232,195 7,475,552 Other financial obligations 111,024 6,990 118,014 Current tax liabilities — 20,924 20,924 Provisions 178,486 25,460 203,946 Employee benefits 26,855 65,724 92,579 Other liabilities 36,081 362,724 398,805 Total Liabilities 23,751,251 8,192,480 31,943,731 |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
Risk Management | |
Risk Management | 43. Risk Management: (1) Introduction The Bank’s risk management is based on specialization, knowledge of the business and the experience of its teams, with professionals specifically dedicated to each different type of risks. Our policy is to maintain an integrated, forward looking approach to risk management, taking into account the current and forecasted economic environment and the risk/return ratio of all products for both the Bank and its subsidiaries. Our credit policies and processes acknowledge the particularities of each market and segment, thus affording specialized treatment to each one of them. The integrated information prepared for risk analysis is key to developing our strategic plan, this objectives include: determining the desired risk level for each business line; aligning all strategies with the established risk level; communicating desired risk levels to Bank’s commercial areas; developing models, processes and tools for evaluating, measuring and controlling risk throughout the different business lines and areas; informing the board of directors about risks and their evolution; proposing action plans to address important deviations in risk indicators and enforcing compliance of applicable standards and regulations. (a) Risk Management Structure Credit and Market Risk Management, are present at all levels of the Organization, with a structure that recognizes the relevance of the different risk areas that exist. The current levels are: (i) Board of Directors The Board is responsible for the establishment and monitoring of the Bank’s risk management structure. Due to the above, it is permanently informed regarding the evolution of the different risk areas, participating through its Finance and Financial Risk Committees, Credit Committees, Portfolio Risk Committee and Senior Operational Risk Committee, which check the status of credit, market and operating risks. In addition, it actively participates in each of them, informed of the status of the portfolio and participating in the strategic definitions that impact the quality of the portfolio. Risk management policies are established in order to identify and analyze the risks faced by the Bank, to set adequate limits and controls and monitor risks and compliance with limits. The policies and risk management systems are regularly reviewed in order for them to reflect changes in market conditions and the Bank’s activities. It, through its standards and management procedures intends to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. (ii) Finance, International and Market Risk Committee This committee reviews exposures and financial risks. Estimates impacts on the valuation of operations and / or results due to potential adverse movements in the values of market variables or tight liquidity. On the other hand, it analyzes estimated results of certain financial positions. Estimate the credit exposure of Treasury products (derivatives, bonds). It is responsible for designing policies and procedures related to limits and alerts of financial exposures, and to ensure correct and timely measurement, control and reporting thereof. The Finance, International and Financial Risk Committee comprises the Chairman, four Directors or Advisors to the Board , the General Manager, the Manager of the Corporate Division, the Manager of Corporate Risk Division, the Manager of Treasury Division and the Manager of Financial Risk Area. If deemed appropriate, the Committee may invite certain persons to participate, on a permanent or occasional basis, in one or more sessions. (iii) Credit Committees The credit approval process is done mainly through various credit committees, which are composed of qualified professionals and with the necessary attributions to take decisions required. These committees have different periodicities and are based on the amounts approved and commercial segments. Each committee is responsible for defining the terms and conditions under which the Bank accepts counterparty risks and the Retail Credit Risk and Wholesale Credit Risk Divisions participate independently and autonomously of the commercial areas. Within the risk management structure of the Bank, the maximum approval instance is the Credit Committee of Directors, who is responsible for knowing, analyzing and resolving all credit operations associated with clients and / or economic groups whose total amount subject to approval is equal to or greater than UF 750,000. It also has to know, analyze and resolve all those credit operations that, in accordance with the established in the Bank's internal rules, must be approved by this Committee, with the exception of the special powers delegated by the Board to the Administration. This Committee meets weekly, the presidency is in charge of the Chairman of the Board of Directors and is composed of the Directors, officers and alternates, Advisors to the Board of Directors; General Manager and the Wholesale Credit Risk Division Manager. (iv) Portfolio Risk Committee The main function is to know the evolution of the composition, concentration and risk of the loan portfolio of the different banks and segments. Approves and proposes to the Board the different credit risk policies. It is responsible for reviewing, approving and recommending to the Board of Directors, for its final approval, the different portfolio evaluation methodologies and provision models. It is also responsible for reviewing and analyzing the adequacy of provisions for the different banks and segments. Also to review the guidelines and methodological advances for the development of internal models of credit risk, together with monitoring the concentration by sectors and segments according to the sectoral limits policy. The Portfolio Risk Committee meets monthly and is composed of the Chairman of the Board of Directors, two Directors, General Manager, Wholesale Credit Risk Division Manager, Retail Credit Risk Division Manager, Commercial Division Manager, Global Risk Control Division Manager and Retail Monitoring and Models Assistant Manager. (v) Corporate Credit Risk Division In the third quarter of 2018, the Retail Credit Risk and Retail Credit Risk Divisional Managements were created, in order to give a more specialized focus to the different business segments. These divisions, together with the Global Risk Control, comprise the corporate risk governance structure. These divisions have teams with extensive experience and knowledge in each area associated with credit and market risks, ensuring their integral and consolidated management, including the Bank and its subsidiaries. Regarding the management of Credit Risks, the divisions identified at all times ensure the quality of the portfolio and the optimization of the risk-return ratio for all customer segments, whether individuals or companies, managing the phases of admission, monitoring and recovery of credits granted. Additionally, the Bank created the Cybersecurity Division during 2018, focused on protecting and monitoring the most sensitive assets of the organization, being able to provide security and confidence to customers and collaborators, whose main objective is to have a secure bank, cyber-resilient and prepared to face any type of threat that puts the reputation and information of the organization at risk. (b) Measurement Methodology In terms of Credit Risk, provision levels and portfolio expenses are the basic measures for determining the credit quality of our portfolio. A fundamental task of the Retail Credit Risk Division, Wholesale Credit Risk Division and Risk Global Control Division of is to recognize in a timely manner the level of risk of the loan portfolio. This process is based on policies, standards, procedures and models prepared according to the instructions issued by the Superintendency of Banks and Financial Institutions (“SBIF”) and approved by the Board of Directors. The evaluation and classification of risks is done considering both the individual and group portfolios. The final result of the calculation process determines the level of provisions that the bank should constitute. The individual evaluation applies, mainly, to the portfolio of legal persons of the Bank, which require a more detailed level of knowledge. In order to establish provisions, each of the debtors evaluated is assigned one of the 16 risk categories defined by the SBIF. The bank performs a constant and permanent review of the risk ratings of the portfolio, considering the updated information on the financial situation, payment behavior and the environment of each client. The group evaluation mainly applies to the portfolio of natural persons and to smaller companies. These assessments and calculation of provisions are made monthly. The consistency of the models is analyzed through an independent validation to the model development unit and, subsequently, through the analysis of retrospective tests that allow to compare the real losses with the expected ones. In relation to the provisions models, during 2018 a complete revision of the guidelines for the development of group provisions models was made, converging to the best practices. Specifically, approval protocols and methodologies were analyzed, and new provision models were implemented for the entire Bank's portfolio. The bank annually performs a sufficiency test of provisions for the total portfolio of loans, in order to validate the quality and robustness of the risk assessment processes, verifying that the provisions made are sufficient to cover the losses that could be derive from the credit operations granted. The result of this analysis is presented to the board of directors, which expresses itself about the sufficiency of the provisions in each year. The sufficiency test of the Chilean GAAP allowance and the related review by the Board of Directors has not resulted in supplementary provisions for our Chilean GAAP allowance, and, consequently, nor for our IFRS allowance. However, we consider similar factors for both our IFRS allowance and our Chilean GAAP allowance. If necessary we would adjust our IFRS allowance based on the results of the sufficiency test and the Board of Directors review if the underlying reason for the supplemental provision under Chilean GAAP were also an input or model used in our IFRS allowance methodology. The monitoring and control of risks are carried out mainly based on limits established by the Board of Directors. These limits reflect the Bank's business and market strategy, as well as the level of risk that it is willing to accept, with additional emphasis on the selected industries. The Bank's General Manager receives on daily basis, and the Finance, International and Financial Risk Committee on a monthly basis, the evolution of the Bank's price and liquidity risk status, both according to internal metrics and those imposed by the regulators. (2) Credit Risk Credit risk considers the likelihood that the counterparty in the credit operation will not meet its contractual obligation due to disability or financial insolvency, and this leads to a potential credit loss. Risk management is one of the main pillars of the bank's strategy, and it is also fundamental for the sustainability of the business over time. The risk function considers the different segments that are served by the bank and its subsidiaries, being independent and objective in the application of its principles and fundamentals. The associated policies are approved by the highest levels of the bank, there is a protocol for review, update and approval, which has an active participation of the Board. It is the responsibility of the Administration to have the mechanisms for its control and application. To guarantee an adequate governance model, there are different committees, depending on the different natures of the credit operations, composed of directors and senior management executives. The general principles that govern the administration of credit risk are framed in the following ambit: 1. 2. 3. The management of credit risk is permanent and considers the processes of admission, monitoring and recovery, which is reflected in the following management principles: 1. 2. 3. 4. Banco de Chile has two structures of divisional, retail and wholesale credit risk for admission and collection, and a Division of Global Risk Control for monitoring and validation, with a high specialization in equipment, processes and decision tools. (a) Retail Segment In general terms, the decisions of this segment are evaluated with scoring tools, complemented with an adequate model of attributions of risk. Decisions are based on critical elements such as the level of indebtedness, payment capacity and maximum acceptable exposure. In order to have an adequate segregation of functions, during 2018 the following areas and functions were established: · Models Area, responsible for constructing statistical models, defining the variables and weightings of the same. Its approval rests with the Model Technical Committee and subsequently with the Model Validation Area. · Management Integration Area, which is in charge of implementing the statistical models in the credit evaluation processes, ensuring an adequate link of the decision of the same. · Model and Portfolio Monitoring Area, which belongs to the Global Risk Control Division, seeks to provide greater independence to the Risk Control function. This area is in charge of evaluating and measuring the behavior of the portfolios and the performance of the models. · Admission Area, in charge of the individual evaluation of operations and clients, also has specialization by segment and regions to increase their knowledge of clients and socio-economic information. · Collection Area, it is a specialized unit that centralizes the recovery management of all the segments and that in the retail case it carries out directly through Socofin, a subsidiary of the bank (b) Wholesale Segment The admission management of the Wholesale segment is based on the individual evaluation of the portfolios. The analysis is based on various factors, such as financial aspects of the client that account for its financial solvency and the ability to generate flows, industry variables, aspects of the operation, amount of exposure required, term and products. The analysis is based on a rating model. In the event that the client belongs to a group of companies, the overall relationship of the rest of the conglomerate with the Bank is considered, as well as the financial situation and consolidated exposure levels. The permanent monitoring of the portfolio and the monitoring of compliance with certain conditions established in the admission stage, such as financial covenant controls, coverage of certain guarantees and restrictions imposed at the time of approval are functions performed by the Global Risk Control Division. In the event that companies with signs of impairment or some unfulfilled condition are detected, joint action plans are generated between the Wholesale Credit Risk, Global Risk Control Divisions, and the commercial area to which the client belongs. In a situation where they present problems in the recovery of their credits, there is an area in charge of carrying out the management, in order to define and negotiate case by case. The management is carried out by executives specialized in the area of Special Asset Management, belonging to the Wholesale Credit Risk Division. (c) Derivative Transactions We produce own models which are used for credit risk management purposes, known as the pre-settlement exposure (PSE). Generally, the PSE is computed as follows: PSE = Maximum (CMTM + CEF * Notional, 0) CMTM: Current Mark-to-Market of the transaction Notional: Transaction notional amount CEF: Credit Exposure Factor, which reflects the peak exposure within the life of the transaction, under 95% of confidence level. The portfolio approach is taken into account when computing exposures of several transactions closed with one single counterpart. Credit mitigating conditions for derivative transactions have become popular in the local financial markets. There are financial institutions that have accepted early termination clauses, and netting is also possible with corporations when appropriate documentation under a regular Master Agreement is signed. Collateral agreements have been requested by certain banks for inter-banking transactions within other financial institutions, but its effective application under Chilean Law make advisable not to include it in the exposure measurement. Derivatives transactions closed with counterparts residing abroad (mostly global banks) are documented utilizing ISDA and CSA. Netting and cash collateral above a certain threshold level are the typical credit mitigations schemes in place for this kind of transactions. This metric is used for measuring, limiting, controlling and reporting credit exposures by counterparty. (c) Portfolio Concentration: The maximum exposure to credit risk, by client or counterparty, without taking into account guarantees or other credit enhancements as of December 31, 2017 and 2018 does not exceed 10% of the Bank’s effective equity. The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2017: Chile United States Brazil Other Total MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 695,213 271,564 — 90,616 1,057,393 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile 1,317,164 — — — 1,317,164 Other instruments issued in Chile 221,092 — — — 221,092 Instruments issued abroad — 322 — — 322 Subtotal 1,538,256 322 — — 1,538,578 Cash collateral on securities borrowed and reverse repurchase agreements 91,641 — — — 91,641 Derivative Contracts for Trading Purposes Forwards 392,130 23,162 — 91,322 506,614 Swaps 472,492 79,614 — 158,017 710,123 Call Options 514 — — — 514 Put Options 2,841 — — — 2,841 Futures — — — — — Subtotal 867,977 102,776 — 249,339 1,220,092 Hedge Derivative Contracts Forwards — — — — — Swaps — 8,632 — 19,217 27,849 Call Options — — — — — Put Options — — — — — Futures — — — — — Others — — — — — Subtotal — 8,632 — 19,217 27,849 Loans and advances to Banks (before allowances) Central Bank of Chile 350,916 — — — 350,916 Domestic banks 120,017 — — — 120,017 Foreign banks — — 158,524 130,828 289,352 Subtotal 470,933 — 158,524 130,828 760,285 Loans to Customers (before allowances) Commercial loans 13,902,516 — — 58,302 13,960,818 Residential mortgage loans 7,477,236 — — — 7,477,236 Consumer loans 4,013,459 — — — 4,013,459 Subtotal 25,393,211 — — 58,302 25,451,513 Financial assets available-for-sale From the Chilean government and Central Bank 356,368 — — — 356,368 Other instruments issued in Chile 1,168,913 — — — 1,168,913 Instruments issued abroad — — — 1,034 1,034 Subtotal 1,525,281 — — 1,034 1,526,315 Electricity, Agriculture Financial Chilean Retail Gas and and Transportation Services Central Bank Government (Individuals) Trade Manufacturing Mining Water Livestock Fishing and Telecom Construction Services Other Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 894,972 162,421 — — — — — — — — — — — — 1,057,393 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile — 1,062,558 254,606 — — — — — — — — — — — 1,317,164 Other instruments issued in Chile 221,092 — — — — — — — — — — — — — 221,092 Instruments issued abroad 322 — — — — — — — — — — — — — 322 Subtotal 221,414 1,062,558 254,606 — — — — — — — — — — — 1,538,578 Cash collateral on securities borrowed and reverse repurchase Agreements Payables 32,555 — 2,576 — 24,717 — 12,522 7,464 13 672 7,382 — 3,740 — 91,641 Derivative Contracts for Trading Purposes Forwards 245,873 — — — 7,666 9,860 2,561 84 54 219 2,368 29 237,900 — 506,614 Swaps 643,735 — — — 44,773 5,563 839 4,679 2,862 9 7,244 ― 419 — 710,123 Call Options 269 — — — 32 90 ― ― 67 ― 52 1 3 — 514 Put Options 734 — — — 1,432 396 ― ― 222 ― ― 11 46 — 2,841 Futures — — — — — ― ― ― ― ― ― ― ― — — Subtotal 890,611 — — — 53,903 15,909 3,400 4,763 3,205 228 9,664 41 238,368 — 1,220,092 Hedge Derivative Contracts Forwards — — — — — — — — — — — — — — — Swaps 27,849 — — — — — — — — — — — — — 27,849 Call Options — — — — — — — — — — — — — — — Put Options — — — — — — — — — — — — — — — Futures — — — — — — — — — — — — — — — Subtotal 27,849 — — — — — — — — — — — — — 27,849 Loans and advances to Banks Central Bank of Chile — 350,916 — — — — — — — — — — — — 350,916 Domestic banks 120,017 — — — — — — — — — — — — — 120,017 Foreign banks 289,352 — — — — — — — — — — — — — 289,352 Subtotal 409,369 350,916 — — — — — — — — — — — — 760,285 Loans to Customers, Net Commercial loans 1,851,649 — — — 2,035,129 1,399,692 422,176 565,695 1,354,069 145,266 1,612,930 1,493,373 1,964,238 1,116,601 13,960,818 Residential mortgage loans — — — 7,477,236 — ― ― ― ― ― ― ― ― ― 7,477,236 Consumer loans — — — 4,013,459 — ― ― ― ― ― ― ― ― ― 4,013,459 Subtotal 1,851,649 — — 11,490,695 2,035,129 1,399,692 422,176 565,695 1,354,069 145,266 1,612,930 1,493,373 1,964,238 1,116,601 25,451,513 Financial assets available-for-sale From the Chilean government and Central Bank — 207,474 148,894 — — — ― ― ― — ― — — — 356,368 Other instruments issued in Chile 1,106,003 — — — 31,833 8,589 7,662 2,883 6,972 — 4,971 — — — 1,168,913 Instruments issued abroad 1,034 — — — — — ― ― ― — ― — — — 1,034 Subtotal 1,107,037 207,474 148,894 — 31,833 8,589 7,662 2,883 6,972 — 4,971 — — — 1,526,315 The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2018: Chile United States Brazil Other Total MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 773,368 69,343 — 37,370 880,081 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile 1,523,472 — — — 1,523,472 Other instruments issued in Chile 129,607 — — — 129,607 Instruments issued abroad — 4,446 — — 4,446 Mutual fund investment 87,841 — — — 87,841 Subtotal 1,740,920 4,446 — — 1,745,366 Cash collateral on securities borrowed and reverse repurchase agreements 97,289 — — — 97,289 Derivative Contracts for Trading Purposes Forwards 670,595 23,082 — 41,767 735,444 Swaps 453,191 98,414 — 186,525 738,130 Call Options 4,309 — — 530 4,839 Put Options 56 — — 64 120 Futures — — — — — Subtotal 1,128,151 121,496 — 228,886 1,478,533 Hedge Derivative Contracts Forwards — — — — — Swaps 4,547 14,348 — 16,519 35,414 Call Options — — — — — Put Options — — — — — Futures — — — — — Others — — — — — Subtotal 4,547 14,348 — 16,519 35,414 Loans and advances to Banks (before allowances) Central Bank of Chile 1,100,831 — — — 1,100,831 Domestic banks 100,023 — — — 100,023 Foreign banks — — 209,693 84,849 294,542 Subtotal 1,200,854 — 209,693 84,849 1,495,396 Loans to Customers (before allowances) Commercial loans 15,344,854 — 354 93,190 15,438,398 Residential mortgage loans 8,052,073 — — — 8,052,073 Consumer loans 4,436,161 — — — 4,436,161 Subtotal 27,833,088 — 354 93,190 27,926,632 Financial Assets at Fair Value through OCI From the Chilean Government and Central Bank of Chile 164,222 — — — 164,222 Other instruments issued in Chile 779,613 — — — 779,613 Instruments issued abroad — 108,544 — 812 109,356 Subtotal 943,835 108,544 — 812 1,053,191 Electricity, Agriculture Financial Chilean Retail Gas and and Transportation Services Central Bank Government (Individuals) Trade Manufacturing Mining Water Livestock Fishing and Telecom Construction Services Other Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 758,274 121,807 — — — — — — — — — — — — 880,081 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile — 1,434,986 88,486 — — — — — — — — — — — 1,523,472 Other instruments issued in Chile 129,607 — — — — — — — — — — — — — 129,607 Instruments issued abroad 4,446 — — — — — — — — — — — — — 4,446 Mutual fund investment 87,841 — — — — — — — — — — — — — 87,841 Subtotal 221,894 1,434,986 88,486 — — — — — — — — — — — 1,745,366 Cash collateral on securities borrowed and reverse repurchase Agreements Payables 29,031 742 — — 37,520 — 5,017 4,466 3,096 59 15,637 — 985 736 97,289 Derivative Contracts for Trading Purposes Forwards 374,006 — — — 7,194 13,328 40 10,288 4,211 411 98 455 296 325,117 735,444 Swaps 584,743 — — — 51,916 7,348 22 4,026 10,006 2,249 2,235 680 74,250 655 738,130 Call Options 1,669 — — — 389 16 — 1,090 1,489 80 — 59 36 11 4,839 Put Options 64 — — — 51 5 — — — — — — — — 120 Futures — — — — — — — — — — — — — — — Subtotal 960,482 — — — 59,550 20,697 62 15,404 15,706 2,740 2,333 1,194 74,582 325,783 1,478,533 Hedge Derivative Contracts Forwards — — — — — — — — — — — — — — — Swaps 35,414 — — — — — — — — — — — — — 35,414 Call Options — — — — — — — — — — — — — — — Put Options — — — — — — — — — — — — — — — Futures — — — — — — — — — — — — — — — Subtotal 35,414 — — — — — — — — — — — — — 35,414 Loans and advances to Banks Central Bank of Chile — 1,100,831 — — — — — — — — — — — — 1,100,831 Domestic banks 100,023 — — — — — — — — — — — — — 100,023 Foreign banks 294,542 — — — — — — — — — — — — — 294,542 Subtotal 394,565 1,100,831 — — — — — — — — — — — — 1,495,396 Loans to Customers, Net Commercial loans 2,122,599 — — — 2,324,325 1,579,475 453,549 461,351 1,582,520 156,472 1,498,142 1,752,237 2,109,491 1,398,237 15,438,398 Residential mortgage loans — — — 8,052,073 — — — — — — — — — — 8,052,073 Consumer loans — — — 4,436,161 — — — — — — — — — — 4,436,161 Subtotal 2,122,599 — — 12,488,234 2,324,325 1,579,475 453,549 461,351 1,582,520 156,472 1,498,142 1,752,237 2,109,491 1,398,237 27,926,632 Financial Assets at Fair Value through OCI From the Chilean Government and Central Bank of Chile — 135,145 29,077 — — — — — — — — — — — 164,222 Other instruments issued in Chile 689,595 — — — 22,390 — — 8,245 — — 4,938 — — 54,445 779,613 Instruments issued abroad 109,356 — — — — — — — — — — — — — 109,356 Subtotal 798,951 135,145 29,077 — 22,390 — — 8,245 — — 4,938 — — 54,445 1,053,191 (d) Collateral and Other Credit Enhancements The amount and type of collateral required depends on the counterparty’s credit risk assessment. The Bank has guidelines regarding the acceptability of types of collateral and valuation parameters. The main types of collateral obtained are: · For commercial loans: Residential and non-residential real estate, liens and inventory. · For retail loans: Mortgages loans on residential property. The Bank also obtains collateral from parent companies for loans granted to their subsidiaries. Management makes sure its collateral is acceptable according to both external standards and internal policies guidelines and parameters. The Bank has approximately 225,191 collateral assets, the majority of which consist of real estate. The following table contains guarantees value as of December 31. The following is a table with the guarantee values as of December 31, 2017 and 2018: Fair value of collateral and credit enhancements held as of December 31, 2017 Maximum exposure to credit risk Mortgages Pledge (*) Securities Warrants Others Net collateral Net exposure Loans to customers: MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Corporate lending 9,775,740 2,269,716 72,893 438,595 3,381 243,961 3,028,546 6,747,194 Small business lending 4,185,078 2,543,343 28,699 32,034 — 58,255 2,662,331 1,522,747 Consumer lending 4,013,459 283,091 938 1,776 — 18,594 304,399 3,709,060 Mortgage lending 7,477,236 6,922,454 90 267 — — 6,922,811 554,425 Total 25,451,513 12,018,604 102,620 472,672 3,381 320,810 12,918,087 12,533,426 Fair value of collateral and credit enhancements held as of December 31, 2018 Maximum exposure to credit risk Mortgages Pledge (*) Securities Warrants Others Net collateral Net exposure Loans to customers: MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Corporate lending 11,705,859 2,589,429 75,105 423,556 2,263 221,919 3,312,272 8,393,587 Small business lending 3,732,539 2,977,286 31,270 28,974 — 71,140 3,108,670 623,869 Consumer lending 4,436,161 332,030 967 2,244 — 20,090 355,331 4,080,830 Mortgage lending 8,052,073 7,493,073 58 265 — — 7,493,396 558,677 Total 27,926,632 13,391,818 107,400 455,039 2,263 313,149 14,269,669 13,656,963 (*) Includes agricultural and industrial pledges and pledges without conveyance. The Bank also uses mitigating tactics for credit risk on derivative transactions. To date, the following mitigating tactics are used: · Accelerating transactions and net payment using market values at the date of default of one of the parties. · Option for both parties to terminate early any transactions with a counterparty at a given date, using market values as of the respective date. · Margins established with time deposits by customers that close FX forwards with subsidiary Banchile Corredores de Bolsa S.A. The value of the guarantees that the Bank maintains related to the loans individually classified as impaired as of December 31, 2017 and 2018 is Ch$102,014 million and Ch$85,721 million, respectively. The value of the guarantees that the Bank maintains related to non-impaired loans as of December 31, 2017 and 2018 is Ch$358,967 million and Ch$295,634 million, respectively. (g) Credit Quality by Asset Class: The Bank determines the credit quality of financial assets using internal credit ratings. The rating process is linked to the Bank’s approval and monitoring processes and is carried out in accordance with risk categories established by current standards. Credit quality is continuously updated based on any favorable or unfavorable developments to customers or their environments, considering aspects such as commercial and payment behavior as well as financial information. The Bank also conducts reviews of companies in certain industry sectors that are affected by macroeconomic or sector-specific variables. Such reviews allow the Bank to timely establish any necessary allowance loan losses that are sufficient to cover losses for potentially uncollectable loans. The following tables below provide details of financial assets past due as of December 31, 2017 and 2018, listed by their first past-due date. The detailed amounts include installments that are overdue, plus the remaining balance of principal and interest on such loans. As of December 31, 2017: Default 1 to 29 30 to 59 60 to 89 days days days MCh$ MCh$ MCh$ Loans and advances to banks 6,880 — — Subtotal past-due loans and advances to banks 6,880 — — Commercial loans 183,374 34,457 53,224 Import-export financing 19,628 2,403 647 Factoring transactions 30,204 3,723 748 Commercial lease transactions 52,365 12,407 2,144 Other loans and receivables 1,195 599 724 Residential mortgage loans 143,619 56,422 26,365 Consumer loans 203,692 91,928 38,320 Subtotal past-due loans to customers 634,077 201,939 122,172 Total 640,957 201,939 122,172 As of December 31, 2018: Default 1 to 29 30 to 59 60 to 89 days days days MCh$ MCh$ MCh$ Loans and advances to banks 273 — — Subtotal past-due loans and advances to banks 273 — — Commercial loans 132,707 40,823 27,527 Import-export financing 13,892 2,194 618 Factoring transactions 44,106 7,540 726 Commercial lease transactions 92,057 6,166 3,230 Other loans and receivables 1,462 777 470 Residential mortgage loans 154,751 67,257 24,653 Consumer loans 217,923 102,752 40,782 Subtotal past-due loans to customers 656,898 227,509 98,006 Total 657,171 227,509 98,006 As of December 31, the aging analysis of loans is as follows: Past due but not impaired (*) Neither Over past due Over 30 days 60 days or Up to and up to and up to Over As of impaired 30 days 60 days 90 days 90 days Total December 31, MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ 2017 23,928,184 533,690 134,316 37,292 2,008 24,635,490 2018 26,376,542 538,681 145,130 37,371 2,566 27,100,290 (*) These amounts include installments that are overdue, plus the remaining balance of principal and interest on such loans. (h) Assets Received in Lieu of Payment: The Bank has received assets in lieu of payment totaling Ch$19,905 million and Ch$24,871 as of December 31, 2017 and 2018, respectively, the majority of which are properties. All of these assets are managed for sale. (i) Renegotiated Assets: The impaired loans are considered to be renegotiated when the corresponding financial commitments are restructured and the Bank assesses the probability of recovery as sufficiently high. The |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 44. New Accounting Pronouncements: The following is a summary of new standards, interpretations and improvements to the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) that are not yet effective as of December 31, 2018: IFRS 16 – Leases. On January 2016 IFRS 16 “Leases” was issued, which establishes the principles in respect of the recognition, measurement, presentation and disclosure of leases contracts, for both lessee and lessor. This new rule does not differ significantly from the IAS 17 “Leases" that precedes it, related to the accounting treatment for the lessor. However, related to the lessee, the new rule requires the recognition of assets and liabilities for most lease contracts. The date of application of this new standard is as of January 1, 2019. Early adoption is permitted but only if IFRS 15 - Revenue from contracts with customers is also applied. The Bank and its subsidiaries, for purposes of the initial application of the standard, took the option of recognizing the cumulative effect as off the initial adoption date of January 1, 2019, without restating comparative information for the year prior adoption. The Bank recorded a right-of-use-asset for an amount equal to the lease liability in an amount of Ch$144,529 million, this amount was determined according to the present value of the remaining lease payments, discounted using the financing rate. IAS 28 -- Investments in Associates and Join Venture and IFRS 10 - Consolidated Financial Statements. In September 2014, the IASB issued this amendment, which clarifies the scope of recognized gains and losses in a transaction involving an associate or joint venture, and this depends on whether the asset sold or contribution is a business. Therefore, IASB concluded that all of the profit or loss should be recognized against loss of control of a business. Likewise, gains or losses resulting from the sale or contribution of a subsidiary that is not a business (definition of IFRS 3) to an associate or joint venture should be recognized only to the extent of unrelated interests in the associate or joint venture. During December 2015 the IASB agreed that the amendments should apply in the future, allowing its immediate application. This amendment will not impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. IFRIC 23 – Uncertainty over Income Tax Treatments. In June 2017, the IASB published IFRIC 23, which clarifies the application of the recognition and measurement criteria required by IAS 12 Income Taxes when there is uncertainty about tax treatments. The date of application of this interpretation is as of January 1, 2019. The Bank estimates that this standard will not have impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. IAS 28 – Investments in associates and joint ventures and IFRS 9 - Financial instruments. In October 2017, the IASB published the amendments to IFRS 9 Financial Instruments and IAS 28 Investments in Associated Entities and Joint Ventures. The amendments to IFRS 9 allow entities to measure financial assets, prepaid with negative compensation at amortized cost or fair value, through other comprehensive income if a specific condition is met, instead of at fair value with effect on results. Regarding IAS 28, the amendments clarify that entities must account for long-term results in an associate or joint venture, to which the equity method is not applied, using IFRS 9. The IASB also released an example that illustrates how companies should apply the requirements of IFRS 9 and IAS 28 to long-term interests in an associated entity or joint venture. The date of application of these amendments is January 1, 2019. This modification will not have an impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. Annual improvements IFRS 2015-2017 cycle: In December 2017, the IASB issued the Annual Improvements to IFRS Cycle 2015-2017, which includes amendments to the following regulations: IFRS 3 -- Business Combinations. Interests previously held in a joint operation. The amendment provides additional guidance for applying the procurement method to particular types of business combinations. The amendment states that when a party to a joint arrangement obtains control of a business, which is a joint arrangement and had rights over the assets and liabilities, for the liabilities related to this joint arrangement, immediately before the acquisition date, the transaction it is a business combination achieved in stages. Therefore, the acquirer will apply the requirements for a business combination achieved in stages, including re-measuring its previously held interest in the joint operation. By doing so, the acquirer will re-measure its total value that it previously had in the joint operation. The date of application of this amendment is as of January 1, 2019 . Early adoption is permitted. This amendment will not impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. IFRS 11 – Joint Agreements. The amendments to IFRS 11 relate to the accounting for acquisitions of interests in Joint Agreements. The amendment establishes that a party that participates, but does not have control, in a joint agreement, can obtain control of the joint agreement. Given the above, the activity of the joint agreement would constitute a Business Combination as defined in IFRS 3, in such cases; the interests previously held in the joint agreement are not remeasured. The date of application of these amendments is as of January 1, 2019 . Early adoption is permitted. The Bank and its subsidiaries have no impact on the consolidated financial statement as a result from this amendment. IAS 23 – Costs for loans. Costs for loans that can be capitalized. The amendment to the standard is intended to clarify that, when an asset is available for use or sale, an entity will treat any outstanding loan taken specifically to obtain that asset, as part of the funds it has taken as current loans. The date of application of these amendments is as of January 1, 2019 . Early adoption is permitted. This modification has no impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. IAS 19 – Employee Benefits. In February 2018 the IASB issued amendments to IAS 19 "Employee Benefits", which relate to: - If there is a modification, reduction or liquidation of a plan, it is now mandatory that the current service cost and net interest for the period after the new measurement be determined using the assumptions used for the new measurement. - In addition, amendments have been included to clarify the effect of a modification, reduction or liquidation of a plan on the requirements with respect to the asset roof. The date of application of this amendment is as of January 1, 2019 . Early implementation is allowed. This amendment has no impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. Conceptual Framework. On March 29, 2018, the IASB issued a “Reviewed” Conceptual Framework. Changes to the Conceptual Framework may affect the application of IFRS when no rule applies to a particular transaction or event. The Conceptual Framework introduces mainly the following improvements: · It incorporates some new concepts of measurement, presentation and disclosure and derecognition of assets and liabilities in the Financial Statements. · Provides updated definitions of assets, liabilities and includes criteria for the recognition of assets and liabilities in the financial statements. · Clarifies some important concepts such as background on form, prudential criteria and measurement of uncertainty. The Conceptual Framework enters into force for periods beginning on January 1, 2020 . Early adoption is permitted. IFRS 3 – Business Combinations. Definition of a Business. The amendments clarify the definition of business, with the objective of helping entities determine whether a transaction should be accounted for as a business combination or as the acquisition of an asset. (a) clarify that, to be considered a business, an acquired set of activities and assets must include, as a minimum, an input and a substantive process that together contribute significantly to the ability to produce outputs; (b) eliminate the assessment of whether market participants can substitute missing processes or inputs and continue to produce outputs; (c) add guides and illustrative examples to help entities assess whether a substantial process has been acquired; (d) restrict definitions of a business or products by focusing on goods and services provided to clients and eliminate reference to the ability of reducing costs; and (e) Companies are required to apply the modified definition of a business to acquisitions made from January 1, 2020 . Early application is allowed. This amendment has no impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. IAS 1 – Presentation of Financial Statements and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors. Definition of Materiality or relative importance. The IASB issued changes to IAS 1, Presentation of Financial Statements, and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to clarify the definition of materiality and align these standards with the Revised Conceptual Framework issued in March 2018, to facilitate companies to make materiality judgments. Under the old definition omissions or misrepresentations of elements are important if they could, individually or collectively, influence the economic decisions that users make on the basis of financial statements (IAS 1 Presentation of Financial Statements). The new definition states that information is material if the omission, distortion or concealment of the information can reasonably be expected to influence decisions that primary users of financial statements of general purpose make on the basis of those financial statements, which provide financial information about a specific reporting entity. The date of application of these amendments is as of January 1, 2020 . Early application is allowed. This amendment has no impact on the Consolidated Financial Statements of Banco de Chile and its subsidiaries. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events | 45. Subsequent Events: a) On January 12, 2019, Law 21,130, Modernizing Banking Legislation, was published in the Official Journal. This law introduces modifications, among other matters, to the General Banking Law (“LGB”), Law 21,000 that created the Commission for the Financial Market, the Organic Law of the State Bank of Chile and the Tax Code. In general terms, the law went to immediate effect, except for those provisions whose effectiveness was deferred in accordance with the provisions of the transitory regulations, among which the following stand out: i. Suppression of the Superintendency of Banks and Financial Institutions (“SBIF”) and integration with the Commission for the Financial Market (“CMF”). ii. Risk Weighting of Bank Assets. The new Article 67 LGB provides that it is the CMF's responsibility to determine the risk weighting of the banks' assets, a matter that is now expressly regulated by law. For the purposes of this determination, the CMF must establish standardized methodologies through the issuance of general standards. The Article First Transitory of Law 21.130 stipulates that such standards must be issued and enter into force within 18 months following the date on which the CMF assumes the functions and powers of the SBIF. As long as the aforementioned standards do not come into effect, the additional capital requirements associated with the market and operational risks established by the permanent rule of Law 21.130 will not apply, and it will also be established that, for purposes of credit risk weighting, the assets of a bank, net of required provisions, will be classified in the categories that are expressed in the aforementioned Article First Transitory. iii. Requirement to maintain an additional basic capital equivalent to 2.5% of risk-weighted assets. A four-year term is granted, starting from the enactment of the regulations referred to in subparagraph ii) above, for the constitution of the additional basic capital foreseen in the new article 66 bis LGB, which will require an incremental capital requirements of 0.625% of a financial institution’s risk-weighted assets, net of required provisions, for each year as of the enactment of the aforementioned regulations. iv. Additional Basic Capital of countercyclical Character. Within an 18 month term, counted from the moment the CMF assumes the functions and powers of the SBIF, for the CMF to issue and enforcement the standards regarding the necessary conditions for the implementation and supervision of the requirement of the countercyclical additional basic capital, determined by the Central Bank in accordance with the new Article 66 ter LGB. Likewise, as of the validity of said standards, the CMF may demand the basic capital referred to in article 66 ter up to 0.625% of risk-weighted assets, net of required provisions, increasing said limit by the same percentage every year, until the limit of 2.5% is reached in the fourth year of entry into force of the respective regulations. v. Additional capital requirements, technical reserve or interbank lending margin for qualified banks of systemic importance. Within an 18 month term, counted from the moment the CMF assumes the functions and powers of the SBIF, said Commission shall issue and enforcement the standards related to the factors and methodologies according to which a bank or group of banks can be qualified for its systemic importance, being able to impose some of the requirements foreseen in the new article 66 quarter LGB. A special rule is also established for: 1) those banks that at the time of the publication of Law 21,130 were subject to additional effective capital requirements pursuant to the provisions of article 35 bis, and 2) the requirement of basic capital to which Article 66 quarter refers to up to 0.5% of total assets, increasing said limit as provided in the fifth transitory measure of the Law 21,130. vi. Credit limit of 30% of the effective equity to the group of people or entities that belong to the same business group. In relation to the new subsection added to numeral 1 of article 84 LGB that provides that with respect to the total of credits that a bank grants to the group of people or entities that belong to the same business group, these may not exceed 30% of effective equity of the creditor bank, it is provided that if any entity is over the credit limit of 30% it will have until January 12, 2020 to comply with this limit. b) On January 18, 2019, the subsidiary Banchile Corredores de Bolsa S.A. informed that in the Ordinary Session held that day, the Board was given notice of and accepted the resignation presented by Mr. Roberto Serwaczak Slowinski to his position as Director of the company. c) On January 24, 2019 in the Ordinary Session No. BCH 2,895, the Board of Directors of Banco de Chile agreed to convene an Ordinary Meeting of Shareholders for March 28, 2019, with the purpose of proposing, among other matters, the distribution of the dividend No. 207 of $ 3,52723589646 for each share, corresponding to 70% of the distributable liquid profit, retaining the remaining 30%. d) The amounts involved include a payment to the Bank of UF 5,367,057 on the date of the signing of the contracts listed below, in accordance with the terms and conditions thereof, and annual payments subject to compliance with insurance sales objectives during the agreement lifetime. The agreement considers the entry into the following contracts, subject to the condition indicated below: i) Exclusive access contract to distribution channels between the Bank and the companies By virtue of which the Bank will grant to the Chubb companies exclusive access to the channels of distribution for the offer and marketing of their insurance through Banchile. Said exclusive access shall be subject to the limits, requirements and exceptions established by the applicable regulations and the contract. ii) Contracts for supply, intermediation and distribution of insurance between Banchile and the Companies Each of the Chubb companies will enter into a contract with Banchile for the supply, intermediation and distribution of insurance, for which Banchile will be obliged to intermediate and offer, in exclusive terms, certain lines of insurance products of the Companies. This exclusivity will be subject to the limits and requirements established by the applicable regulations and the contract. iii) Trademark use agreement between the Bank and the Companies The Chubb Companies will enter into a trademark agreement with the Bank under which the Companies will obtain the right to use the "Banchile" brand for their insurance. iv) Collection contracts between the Bank and the Companies Each of the Companies will enter into a collection agreement with the Bank under which it will designate the Bank as a collector of the premiums that are paid by the clients that have taken out insurance with the Companies. The subscription of the contracts referred to in letters i) to iv) is subject to the condition that the National Economic Prosecutor's Office approve the execution of all of them, for which purpose the parties will proceed to notify the operation in accordance with Chapter IV of the Decree Law No. 211. e) For these purposes, the net distributable profit is defined as net income for the corresponding period minus the value effect of the monetary unit of paid capital and reserves, as a result of any change in the Consumer Price Index (CPI) between to the month prior to the current month and the month of November of the previous year. f) Additionally, the shareholders approved the definite appointment of Mr. Julio Santiago Figueroa as Director of Banco de Chile, a position which he will hold until the next renewal of the Board of Directors. In Management’s opinion, there are no other significant subsequent events that affect or could affect the consolidated financial statements of the Bank and its subsidiaries between December 31, 2018 and the date of issuance of these consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Basis of preparation | (a) Basis of preparation: The Bank’s consolidated financial statements for the years 2016, 2017 and 2018 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Bank presents its statement of financial position broadly in order of liquidity. An analysis regarding recovery or settlement within 12 months after the statement of financial position date (current) and more than 12 months after the statement of financial position date (non–current) is presented in note No. 42. The consolidated financial statements comprise the consolidated statement of comprehensive income and the consolidated statements of financial position, changes in equity, cash flows and the related notes. The consolidated financial statements have been prepared under the historical cost convention, except for financial assets at fair value through other comprehensive income, financial assets held for trading measured at fair value through profit or loss and derivative contracts, which have been measured at fair value. The consolidated statement of cash flows shows the changes in cash and cash equivalents arising from operating activities, investing activities and financing activities during the period. |
Basis of consolidation | (b) Basis of consolidation: The financial statements of Banco de Chile as of and for the years ended December 31, 2017 and 2018 have been consolidated with those of its subsidiaries. The financial statements of the bank’s subsidiaries are prepared for the same reporting year as for Banco de Chile, using consistent accounting policies. (i) Subsidiaries Consolidated financial statements as of December 31, 2017 and 2018 incorporate financial statements of the Bank and its subsidiaries. According IFRS 10 –“Consolidated Financial Statements”, control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee. Specifically the Bank has power over the investee when it has existing rights that give it the ability to direct the relevant activities of the investee. When the Bank has less than a majority of the voting rights of an investee, but these voting rights are enough to have the ability to direct the relevant activities unilaterally, then the Bank has control. The Bank considers all factors and relevant circumstances to evaluate if its voting rights are enough to obtain control, which includes: · The amount of voting rights that the Bank has, related to the amount of voting rights of the other stakeholders. · Potential voting rights maintained by the Bank, other holders of voting rights or other parties. · Rights that emanated from other contractual arrangements. · Any additional circumstance that indicate that the Bank has or does not have the ability to manage the relevant activities when decisions need to be made, including voting behavior patterns in previous shareholders meetings. The financial statements of the subsidiaries are included in the consolidated financial statements from the date control is obtained until the loss of such control. The financial statements have been prepared using uniform accounting policies for similar transactions and other events under equivalent circumstances. The following table details the entities in which the Bank, directly or indirectly – owns a controlling interest and that are therefore consolidated in these financial statements: Interest Owned Direct Indirect Total Functional 2017 2018 2017 2018 2017 2018 RUT Subsidiaries Country Currency % % % % % % 96,767,630-6 Banchile Administradora General de Fondos S.A. Chile Ch$ 99.98 99.98 0.02 0.02 100.00 100.00 96,543,250-7 Banchile Asesoría Financiera S.A. Chile Ch$ 99.96 99.96 — — 99.96 99.96 77,191,070-K Banchile Corredores de Seguros Ltda. Chile Ch$ 99.83 99.83 0.17 0.17 100.00 100.00 96,571,220-8 Banchile Corredores de Bolsa S.A. Chile Ch$ 99.70 99.70 0.30 0.30 100.00 100.00 96,932,010-K Banchile Securitizadora S.A. Chile Ch$ 99.01 99.01 0.99 0.99 100.00 100.00 96,645,790-2 Socofin S.A. Chile Ch$ 99.00 99.00 1.00 1.00 100.00 100.00 Intercompany transactions and balances between the Bank and its subsidiaries and among its subsidiaries have been eliminated for consolidation purposes. Any non-controlling interest is recognized as a separate item within the Bank’s consolidated equity. (ii) Investment in Associates and Joint Ventures Associates An associate is an entity over which the Bank has significant influence on its operating and financial management policy decisions, without having control over the associate. Significant influence is generally presumed when the Bank holds between 20% and 50% of the voting rights. Other factors considered when determining whether the Bank has significant influence over another entity are the representation on the Board of Directors and the existence of material intercompany transactions. The existence of these factors could determine the existence of significant influence over an entity despite the Bank holding a participation of less than 20% of the entity’s voting rights. According to the equity method, the Bank’s investments in an associate are initially recorded at cost, and subsequently increased (or decreased) to reflect both the Bank’s pro rata share of the post-acquisition net income (or loss) of the associate and other movements directly recognized in the associate’s equity. Goodwill arising from the acquisition of an associate is included in the carrying value of the investment (net of any accumulated impairment loss). Since goodwill is not reported separately, an associate is not tested individually for impairment. Rather, the entire investment is tested for impairment as described below. After the application of the equity method, the Bank determines whether it is necessary to recognize impairment loss on the Bank’s investment in an associate. The Bank determines at each reporting date whether there is objective evidence, considering information from internal and external sources, that the investment in the associate is impaired. If this is the case, the Bank calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in its income statement under the line “Income attributable to associates”. Joint Ventures Joint Ventures are joint arrangements whereby the parties to the agreement that have joint control over the arrangement have rights to the net assets covered by the arrangement. Joint control exists only when decisions about the relevant activities covered by the arrangement require the unanimous consent of the parties sharing control in the agreement. According to IFRS 11, an entity shall determine the type of joint arrangement: “Joint Operation” or “Joint Venture”. For investments defined as a “Joint Operation”, the assets, liabilities, income and expenses are recognized by the participation in the joint operation. Investments defined as a “Joint Venture” will be registered according to the equity method. Investments that, for their characteristics, are defined as “Joint Ventures” include the following: · Artikos Chile S.A. · Servipag Ltda. (iii) Structured entities Special purpose entities (“SPEs”) are generally created to comply with a specific and well-defined objective, such as securitizing specific assets or carrying out a specific loan transaction. An SPE is consolidated if, based on an assessment of its relationship with the Bank and the risks and benefits over the SPE, the Bank concludes that it has control of the SPE. As of December 31, 2017 and 2018, the Bank does not control and therefore does not consolidate any SPEs. (iv) Asset management services investments and mutual funds The Bank, through its subsidiary Banchile Administradora General de Fondos S.A., manages assets through investment and mutual funds and other investment products on behalf of investors. According to IFRS 10, for consolidation purposes, it is necessary to evaluate the role of the Bank and its subsidiaries in the funds that it manages, determining its role of Agent or Principal. When assessing whether an investor controls an investee, an investor with decision-making rights must determine whether it acts as a Principal or as an Agent for other parties. A number of factors are considered in making this assessment, including the following: · Scope to make decision over the investee. · Rights held by other parties. · Remuneration according to compensation arrangements. · Exposition of the decision maker to the variability of returns from other interests that keeps the investee. The Bank and its subsidiaries manage investments and mutual funds on behalf and for the benefit of investors, acting only as an Agent in this relationship. Under this category, and as per the aforementioned rule, these funds are not controlled and therefore not consolidated by the Bank or its subsidiaries. |
Non-controlling interest | (c) Non-controlling interest: Non-controlling interest represents the share of losses, income and net assets that the Bank does not control, either directly or indirectly. It is presented as a separate item in the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position. |
Going Concern | (d) Going Concern: The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Bank’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. |
Use of estimates and judgement | (e) Use of estimates and judgment: Preparing financial statements requires management to make judgments, estimations and assumptions that affect the application of accounting policies and the valuation of assets, liabilities, income and expenses presented. Actual results could differ from these estimated amounts. Relevant estimates and assumptions are reviewed regularly by senior management in order to quantify certain assets, liabilities, income, expenses and uncertainties. Revisions to accounting estimates are recognized in the year in which the estimate is revised and for any future period that is affected. Some accounting matters particularly involve uncertainties and therefore require a considerable degree of estimation and critical judgment when applying accounting policies. Details on the use of estimates and judgment and their effect on the amounts recognized in the financial statements are included in the following notes: · Impairment of loans (Notes No. 11, No. 12 and No. 34) · Impairment of instruments at fair value through OCI (Note No. 13) · Impairment of contingent loan risks (Note No. 25) · Useful lives of intangible assets, property and equipment and investment properties (Notes No. 15, No. 16 and No. 17) · Goodwill valuation (Note No. 15) · Deferred taxes and income taxes (Note No. 18) · Provisions (Note No. 25) · Employee benefits (Note No. 26) · Commitments and contingencies (Note No. 28) · Fair value of financial assets and liabilities (Note No. 41) |
Financial asset and liability valuation criteria | · (f) Financial asset and liability valuation criteria: Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the Statement of Financial Position and the Comprehensive Income. This involves selecting the particular basis or method of measurement. These bases or methods include the following: (i) The Bank and its subsidiaries recognize loans to customers, trading and investment securities, deposits, debt issued and subordinated liabilities on the date they originated. Purchases and sales of financial assets performed on a regular basis are recognized as of the trade date on which the Bank committed to purchase or sell the asset. All other assets and liabilities (including assets and liabilities at fair value through profit or loss) are initially recognized as of the trade date on which the Bank becomes a party to the contractual provisions of the instrument. Financial assets or liabilities are initially recognized at fair value plus transaction costs directly attributable to their purchase or issuance, except in the case of financial assets and financial liabilities recorded at fair value through profit or loss (FVPL). (ii) Derecognition of financial assets and liabilities The Bank and its subsidiaries derecognize a financial asset (or where applicable, part of a financial asset) from its Statement of Financial Position when the contractual rights to the cash flows of the financial asset have expired or when the contractual rights to receive the cash flows of the financial asset are transferred during a transaction in which all ownership risks and rewards of the financial asset are transferred. Any portion of transferred financial assets that is created or retained by the Bank is recognized as a separate asset or liability. When the Bank transfers a financial asset, it assesses to what extent it has retained the risks and rewards of ownership. In this case: (a) If substantially all risks and rewards of ownership of the financial asset have been transferred, it is derecognized and any rights or obligations created or retained upon transfer are recognized separately as assets or liabilities. (b) If substantially all risks and rewards of ownership of the financial asset have been retained, the Bank continues to recognize it. (c) If substantially all risks and rewards of ownership of the financial asset are neither transferred nor retained, the Bank will determine if it has retained control of the financial asset. In this case: (c.i) If it has not retained control, the financial asset will be derecognized and any rights or obligations created or retained upon transfer will be recognized separately as assets or liabilities. (c.ii) If the entity has retained control, it will continue to recognize the financial asset to the extent of its continuing involvement in the financial asset. A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. If an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of the existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the income statement. (iii) Offsetting Financial assets and liabilities are offset and the net amount is reported in the Statement of Financial Position if, and only if, the Bank has the legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realize an asset and settle the liability simultaneously. Income and expenses are shown net only if accounting standards allow such treatment, or in the case of gains and losses arising from a group of similar transactions, such as the Bank’s trading activities. (iv) Measurement categories of financial assets and liabilities From January 1, 2018, the Bank classifies all of its financial assets based on the business model for managing these assets and each asset’s contractual terms, measured at either, amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL). The Bank classifies and measures its trading portfolio at FVPL as explained in Note No. 2 (g) (ii). The Bank may designate financial instruments at FVPL, if such designation eliminates or significantly reduces measurement or recognition inconsistencies. Before January 1, 2018, the Bank classified its financial assets as loans and receivables (amortized cost), FVPL or available-for-sale. Financial liabilities, other than loan commitments and financial guarantees, are measured at amortized cost or at FVPL when they are held for trading and derivative instruments or the fair value designation is applied. Fair value measurements The fair value of a financial instrument is the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The most objective and common fair value is the price that you would pay on an active, transparent and deep market (“quoted price” or “market price”). When available, the Bank estimates the fair value of an instrument using quoted prices in an active market for that instrument. A market is considered active if quoted prices are readily and regularly available and represent actual and regularly occurring market transactions on an arm’s length basis. If a market for a financial instrument is not active, the Bank establishes fair value using a valuation technique. These valuation techniques include the use of recent market transactions between interested and duly informed parties that act in mutual independence conditions, if available, as well as references to the fair value of other instruments that are substantially the same, discounted cash flows and options pricing models. The chosen valuation technique uses the maximum observable market data, relies as little as possible on estimates performed by the Bank, incorporates factors that market participants would consider in setting a price and is consistent with accepted economic methodologies for pricing financial instruments. Inputs into the valuation technique reasonably represent market expectations and include risk and return factors that are inherent in the financial instrument. Periodically, the Bank calibrates the valuation techniques and tests them for validity using prices from observable current market transactions in the same instrument or based on any available observable market data. The best evidence of the fair value of a financial instrument at initial recognition is the transaction price (i.e., the fair value of the consideration given or received) unless the fair value of that instrument is evidenced by a comparison with other observable current market transactions in the same instrument (i.e., without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. When the transaction price provides the best evidence of fair value at initial recognition, the financial instrument is initially measured at the transaction price and any difference between this price and the value initially obtained from a valuation model is subsequently recognized in income. Fair value estimates obtained from models are adjusted for any other factors, such as model uncertainties, to the extent that the Bank believes that a third-party market participant would take them into account in pricing a transaction. The Bank’s fair value disclosures are included in Note No. 41. |
Financial assets and liabilities per financial statement line items | (g) (i) Before January 1, 2018, due from banks and loans to customers include non–derivative financial assets with fixed or determinable payments, such as domestic banks and foreign banks including the Chilean Central Bank. After initial measurement, amounts of due from banks and loans to customers are subsequently measured at amortized cost using the effective interest rate (EIR), less allowances for impairment. Amortized cost was calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the EIR. The amortization was included in interest revenue in the income statement. The losses arising from impairment were recognized in the income statement in provisions for loan losses. From January 1, 2018, the Bank continues measuring due from banks, loans to customers and other financial investments at amortized cost as long as the following conditions are met: · The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows from them. · The contractual terms of the financial asset give rise on specified dates on which cash flows are to be received and such cash flows are solely payments of principal and interest (SPPI) on the principal amount outstanding. (ii) Financial assets held-for-trading are securities acquired in order to generate profits from short-term price fluctuations or as a result of brokerage activities, or which are part of a portfolio on which a short-term profit-generating pattern exists. This item includes mainly Central Bank bonds and deposits from domestic banks. Financial assets held-for-trading are stated at their fair market value as of the Statement of Financial Position date. Gains or losses from their fair market value adjustments, as well as gains or losses from trading activities, are included in “Net financial operating income” in the Consolidated Statement of Comprehensive Income. Dividends, interest and indexations are reported as “Net financial operating income” in the Consolidated Statement of Comprehensive Income. All purchases and sales of financial assets held-for-trading that must be executed within the period established by market regulations or conventions are recorded using the trade date, which is the date on which the purchase or sale of the asset is committed. Any other purchase or sale is treated as a derivative (forward) until settlement occurs. (iii) These instruments largely comprise assets that had previously been classified as financial investments available-for-sale under IAS 39. (iii.1) The Bank applies the new category under IFRS 9 of debt instruments measured through FVOCI when both of the following conditions are met: · The instrument is held within a business model whose, objective is to collect contractual cash flows and sell financial assets. · The contractual terms of the financial asset meet the SPPI test (described above). FVOCI debt instruments are measured at fair value with gains and losses arising due to changes in fair value are recognized in Other Comprehensive Income (OCI). Interest income and foreign exchange gains and losses are recognized in profit or loss. The Expected Credit Losses (ECL), which are measured and recorded pursuant to the IFRS 9 adoption, recorded for debt instruments measured at FVOCI does not reduce the carrying amounts of these financial assets, as these remains at fair value in the statement of financial position, but instead, an amount equal to the allowance that would result from the impairment is recognized in OCI, with a corresponding charge to profit or loss. The accumulated loss recognized in OCI is recycled to profit or loss upon the derecognition of the asset. Where the Bank holds more than one investment in the same security, they are deemed to be disposed of on a first–in first–out basis. On derecognition, cumulative gains or losses previously recognized in OCI are reclassified from OCI to profit or loss. (iii.2) Upon initial recognition, the Bank occasionally elects to classify irrevocably some of its equity investments as equity instruments at FVOCI when they meet the definition of definition of Equity under IAS 32 “Financial Instruments: Presentation” and are not held for trading. Such classification is determined on an instrument-by instrument basis. Gains and losses on these equity instruments are never recycled to profit or loss. Dividends are recognized in profit or loss as other operating income. Equity instruments at FVOCI are not subject to an impairment assessment. (iv) Accounts receivable relating to leasing contracts, included under the caption “Loans to customers”, correspond to periodic rent installments of contracts, which meet the definition to be classified as financial leases and are presented at their nominal value net of unearned interest as of each year-end. (v) This corresponds to invoices and other commercial instruments representative of credit, with or without recourse, received in factoring operations and which are registered to book value plus interest and adjustments until maturity. In those cases where the transfer of these instruments was made without responsibility of the grantor, the Bank assumes the default risk. (vi) In its ordinary course of business the Bank gives financial guarantees consisting of letters of credit, guarantees and acceptances. Financial guarantees are initially recognized in the financial statements at fair value being the premium received. Subsequent to initial recognition, the Bank’s liability is measured at the higher of the amount originally recognized less, when appropriate, cumulative amortization recognized in the income statement and the best estimate of expenditure required settling the financial obligation arising as the result of the guarantee. The premium received is recognized in the income statement in “Income from Fees and Commissions” on a straight line basis over the guarantee period. (vii) (vii.1) (a) The Bank assessed whether there was objective evidence that a loan asset or a group of loans were impaired. A loan asset or a group of loans were considered impaired, and impairment losses were incurred if: a. There was objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the asset and up to the balance sheet date (“a loss event”); b. The loss event had an impact on the estimated future cash flows of the financial asset or the group of financial assets; and, c. A reliable estimate of the loss amount could have been made. The Bank first assessed whether objective evidence of impairment existed for loans that were individually significant. It then assessed collectively for loans that were not individually significant and loans which were significant but for which no objective evidence of impairment was observed as a result of the individual assessment. (a.i) Allowances for individual evaluations: An individual analysis of debtors was applied to individuals and companies that were of such significance with respect to size, complexity or level of exposure to the Bank, that they must have been analyzed in detail. To allow management to determine whether a loss event had been occurred on an individual basis, all significant counterparty relationships were reviewed periodically. This evaluation considered current information and events related to the counterparty, such as whether the counterparty were experiencing significant financial difficulty or in breach of contract as, for example, default or delinquency in interest or principal payments. The individual evaluation required assigning a risk category to each debtor and its respective loans. This risk category should consider the following factors: industry or sector, group considerations and management, financial situation, payment behavior and payment capacity. If there was evidence of impairment leading to an impairment loss for an individual counterparty relationship, then the amount of the loss was determined as the difference between the carrying amount of the loan(s), including accrued interest, and the present value of expected future cash flows discounted at the loan’s original effective interest rate or the effective interest rate established upon reclassification to loans, including cash flows that may result from foreclosure less costs for obtaining and selling the collateral. The carrying amount of the loans was reduced by the use of an allowance account and the amount of the loss is recognized in the income statements a component of the provision for credit losses. (a.ii) Allowances for group evaluations: The collective assessment of impairment were used primarily to establish an allowance amount relating to loans that were either individually significant but for which there was no objective evidence of impairment, or were not individually significant but for which there was, on a portfolio basis, a loss amount that was probable of having occurred and was reasonably estimable. The loss amount had two components. The first component was an allowance amount representing the incurred losses on the portfolio of smaller balance homogeneous loans, which were loans to individuals and small business customers of the private and retail business. The loans were grouped according to similar credit risk characteristics and the allowance for each group is determined using statistical models based on historical experience. The second component represents an estimate of incurred losses inherent in the group of loans that had not yet been individually identified or measured as part of the smaller-balance homogeneous loans. Loans that were found not to be impaired when evaluated on an individual basis were included in the scope of this component of the allowance. Once a loan was identified as impaired, although the accrual of interest in accordance with the contractual terms of the loan was discontinued, the accretion of the net present value of the written down amount of the loan due to the passage of time was recognized as interest income based on the original effective interest rate of the loan. (b) Financial assets were reviewed throughout each year, and especially at each reporting date, to determine whether there is objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the asset, and to determine whether the loss event had had an impact on the estimated future cash flows of the financial asset that could have been reliably calculated. An impairment loss for financial assets (different to loans to customers) recorded at amortized cost was 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. An impairment loss for available-for-sale financial assets was calculated using its fair value, considering fair value changes already recognized in other comprehensive income. In the case of equity investments classified as available-for-sale financial assets, objective evidence included a significant or prolonged decline in the fair value of the investment below cost. In the case of debt securities classified as available-for-sale and held-to-maturity financial assets, the Bank assessed whether there existed objective evidence for impairment based on the same criteria as for loans. If there was evidence of impairment, any amount previously recognized in equity, under net gains (losses) not recognized in the income statement, was removed from equity and recognized in the income statement for the period, under net gains (losses) on financial assets available for sale. This amount was determined as the difference between the acquisition cost (net of any principal repayments and amortization) and current fair value of the asset less any impairment loss on that investment previously recognized in the income statement. When the fair value of the available-for-sale debt security recovered to at least amortized cost it was no longer considered impaired and subsequent changes in fair value were reported in equity. Individually significant financial assets were individually examined to determine impairment. Remaining financial assets were collectively evaluated in groups that shared similar credit risk characteristics. Both criteria are similar as those described in Note 2(vii.1)(a) Loans to customers to determine impairment individually and group. All impairment losses were recognized in the income statement. Any cumulative loss related to available-forsale financial assets recognized previously in equity was transferred to the income statement. An impairment loss was reversed if, in a subsequent period, the fair value of the debt instrument classified as available for sale increased and the increase could be objectively related to an event occurring after the impairment loss was recognized in profit or loss. The amount of the reversal was recognized in profit or loss up to the amount previously recognized as impairment. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available for sale were not reversed through profit or loss. (vii.2) Overview of the principles of Expected Credit Loss (ECL) [From January 1, 2018] With the publication in July 2014 of International Financial Reporting Standard 9 – Financial Instruments (IFRS 9), promulgated by the International Accounting Standards Board (IASB), that came into effect as of January 1, 2018, the calculation of provisions will include not only the impairment incurred but also the future estimates of default and losses. In this context, and specifically within the scope of the impairment methodology required by IFRS 9 and considering establishing a new provisions calculation framework, the following key elements are identified, among others: § Estimate of expected loss based on a scenario analysis. § Calculation based on three stages, each as described below § Forward looking analysis of macroeconomic factors and their impact in risk parameters, such as GDP growth, unemployment rates and Central Banks interest rates. (vii.3) Expected Credit Loss (ECL) The expected credit loss reflects the weighted average, across multiple scenarios; for that purposes three scenarios are estimated, for some given probabilities optimistic, central and pessimistic scenarios. Pricing and loan loss provisions should be aligned to those estimates to ensure profitability management of the portfolio. Unlike IAS39, that proposes the quantification of provisions based on the loss incurred, IFRS9 requires that a provision be recognized on the date a loan is originated based on its expected credit loss. IFRS9 proposes to calculate the expected credit loss based on the classification of operations in stages: Stage 1: No significant increase in risk Financial assets whose credit quality is not significantly deteriorated with respect to their credit risk evaluation at the time of their origination. Twelve months expected losses are recognized. This stage also includes those credits which have been reclassified from stage 2. Stage 2: With a significant increase in risk Financial assets that are not in default, however, present a significant increase in risk with respect to the levels anticipated at the time of origination. Stage 2 operations are provisioned considering the financial instrument lifetime; for the discount of the expected losses, the effective rate at the time of origination is used, calculated on the gross amount in the Bank’s books. This stage also includes those credits which have been reclassified from stage 3. Stage 3: Objective impairment evidence For financial assets that present evidence of impairment at the closing date of financial statements, the expected credit losses will consider a lifetime approach. The cash flows discount rate used for this stage corresponds to that of the effective interest rate (EIR) applied at the origination of the credit. POCI: Purchased or Originated Credit Impaired Purchased or originated credit impaired (POCI) assets are financial assets that are credit impaired on initial recognition. POCI assets are recorded at fair value at original recognition and interest income is subsequently recognized based on a credit-adjusted EIR. ECLs are only recognized or released to the extent that there is a subsequent change in their expected credit losses. The classification of the assets is of special relevance due to the different time horizons considered in the calculation of the provision for customers classified in stage 1 and those classified in stage 2. Therefore, the concept of significant increase in risk (SRI) is relevant since the amount of provision depends on the interpretation of this concept. Individual classified loans An individual analysis of debtors is applied to individuals and companies that are of such significance with respect to size, complexity or level of exposure to the Bank that they must be analyzed in detail. The Bank classifies the debtors and their operations related to loans into one of three categories of loan portfolio: Normal, Substandard and Non-complying Loans. This internal rating considers the quantitative variables used to determine the significant risk increase (SRI) in order to establish the appropriate provisions. i. Normal Loans: Normal loans correspond to borrowers who are up to date on their payment obligations and no sign of impairment in their credit quality are shown. This situation is reflected in the internal rating that varies from A1 to A6. All exposures rated as A1 to A4 are classified as stage 1 in IFRS9; exposures rated A5 or A6 are also classified as stage 1 whenever they were not issued with a higher rating; in that case, they are classified as stage 2. ii. Substandard Loans: Substandard loans include all borrowers with a significant increase in risk and insufficient payment capacity or significant deterioration of payment capacity that it may be reasonably expected that they will not comply with all principal and interest payments obligations set forth in the credit agreement. This category also includes all loans that have been non-performing for more than 30 days. This situation is reflected in the internal rating that varies from B1 to B4. All exposures rated at these levels are classified as stage 2. iii. Non-complying Loans: Non-complying loans correspond to borrowers whose payment capacity is seriously at risk and who have a high likelihood of filing for bankruptcy or are renegotiating credit terms to avoid bankruptcy. This category comprises all loans outstanding from debtors that have at least one installment payment of interest or principal overdue for 90 days or more. This situation is reflected in the internal rating that varies from C1 to C6. All obligors rated at these levels are classified as stage 3. Group classified loans The group analysis is used to analyze a large number of loans whose individual amounts are homogenous and not significant. For this analysis, the Bank uses models based on attributes of the debtors and their loans, and on the behavior of a group of loans. The categories used to classify the debtors correspond to “Normal Loans” and “Non-complying Loans”. Loans to customers include originated and purchased non-derivative financial assets with fixed or determinable payments that are not quoted on an active market and which the Bank does not intend to sell immediately or in the short-term. (vii.4) Significant risk increase (quantitative criteria): Significant increase in risk is determined on a quantitative manner, based on changes in Lifetime Probability of Default (LPD). A loan is impaired whenever LPD at calculation date is significantly greater than LPD estimated at the loan origination date. In order to estimate current LPD, macroeconomic factors and their projections are taken into account. (vii.5) Default events In addition to the quantitative criteria described in the previous section, other aspects are considered as indicators of SRI, for which the following entry conditions to the different stages are considered: A default event is due whenever payments are past due for more than 90 days or a renegotiated loan is originated after the preceding loan has been past due for more than 60 days. Default events are identified on a borrower basis, therefore a default event in any exposure triggers a default across any other exposure but not on residential mortgages. Instead, residential mortgages do trigger a default event on every other exposure. In these cases loans are classified at stage 3. (vii.6) Probation periods have been set in order to regulate transitions from stage 3 to stage 2, and from stage 2 to stage 1 as well. Transitions from stage 3 to stage 1 are not allowed. Transitions are determined on a monthly basis. · Transitions from stage 2 to stage 1: Exposures in stage 2 should not have a significant increase in risk (in those terms abovementioned in order to classify them as stage 2) during the previous 4 months to the reporting date. · Transitions from stage 3 to stage 2: Probation period is aligned with local statutory accounting, therefore it should accomplish the following criteria: · No obligation of the debtor shows a delay in its payment of more than 30 calendar days. · Have not been granted new refinancing to pay the obligations. · At least one of the payments made includes capital amortization. · If the debtor has some credit with partial payments in periods of less than six months, at least two payments have been made. · If the debtor must pay monthly instalments for one or more credits, at least four consecutive instalments have been paid. · All debtor obligations across the Chilean financial system are current, except for insignificant amounts. (vii.7) The Bank calculates the ECL based on probability-weighted scenarios to measure the expected credit losses discounted at its effective interest rate (EIR). Losses are defined as the difference between the cash flows expected to be received by the Bank versus the contractual cash flows. For the calculation of the ECL, the following key parameters should be considered: · Probability of Default (PD) The PD parameter is an estimate of the probability with which a client will fall into the non-performing portfolio within a certain time horizon. Point in time estimates are used. Depending on the stage on wich the exposure is classified, the time horizon may vary from one year (for stage 1) to lifetime (for stage 2). Naturally, stage 3 exposures carry a PD = 1. · Exposure at Default (EAD) and Credit Conversion Factor (CCF) The exposure at default (EAD) parameter represents an estimate of the outstanding debt at the time of a customer's default. This debt can be either an asset or a contingent exposure. The latter includes unused limits on revolving facilities such as credit cards, lines of credit, Letters of Credit, etc; in such cases unused limits are weighted by its CCF, which is an estimate of further utilization before default time. · Loss given default (LGD) The Loss Given the Default (LGD) parameter is defined as the expectated value of the losses that an operation would have in case of default. It is expressed as a percentage of the EAD. For its calculation inflows (payments) and outflows are considered. (viii) Criteria under which loans are written-off when collection efforts have been exhausted, but not later than the following maximum periods: Type of Loan Term Consumer loans – secured and unsecured 6 months Other transactions – unsecured 24 months Commercial loans – secured 36 months Residential mortgage loans 48 months Consumer leases 6 months Other non-real estate lease transactions 12 months Real estate leases (commercial or residential) 36 months The term represents the time elapsed by a loan from the date on which the unpaid collection or portion is in default. Cash recoveries on written-off loans are recorded directly through the income statement. (ix) Renegotiated loans: The Bank attempts to restructure loans rather than to take possession of collateral when economically convenient. This may involve extending the payment arrangements and the agreement of new loan conditions. After having renegotiated the terms, any impairment is measured using the original effective interest rate as calculated before the modification of terms and the loan is no longer considered past due. Renegotiated loans are continuously reviewed by management to ensure that all criteria are met and that future payments are likely to occur. The loans continue to be subject to an individual or collective impairment assessment, calculated using the loan’s original effective interest rate. (x) Collateral valuation: The Bank seeks to use collateral, where possible, to mitigate its risks on financial assets. The collateral comes in various forms such as mortgages, pledges, securities, other non-financial assets and credit enhancements. The fair value of collateral is generally assessed, at a minimum, at inception through a certified appraiser, considering factors such as location, collateral type, and observable market value, among others; additionally are considered the settlement costs, the time required to sell off the assets and the potential adverse market conditions as well. However, some types of collateral, such as securities, are valued daily. To the extent possible, the Bank uses active market data for valuing financial assets held as collateral. (See Note No. 43 for further analysis of collateral). For impairment of loans estimates, Collateral is not accounted as an EAD mitigation factor, but as an LGD driver instead. |
Finance and operating leases | (h) Financial and operating leases: The determination of whether an arrangement is a lease, or it contains a lease, is based on the substance of the arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. The Bank acting as leI ssor Assets leased to customers under agreements which transfer substantially all the risks and rewards of ownership, with or without ultimate legal title, are classified as financial leases. When assets held are subject to a financial lease, the leased assets are derecognized and a receivable is recognized which is equal to the present value of the minimum lease payments, discounted at the interest rate implicit in the lease. Initial direct costs incurred in negotiating and arranging a financial lease are incorporated into the receivable through the discount rate applied to the lease. Financial lease income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the financial lease. Assets leased to customers under agreements which do not transfer substantially all the risks and rewards of ownership are classified as operating leases. The leased assets are included within premises and equipment on the Group’s statement of financial position and depreciation is provided on the depreciable amount of these assets on a systematic basis over their estimated useful economic lives. Rental income is recognized on a straight-line basis over the period of the lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense on a straight-line basis over the lease term. The Bank acting as lessee Assets held under financial leases are initially recognized on the balance sheet at an amount equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a financial lease obligation. The discount rate used in calculating the present value of the minimum lease payments is either the interest rate implicit in the lease, if it is practicable to determine, or the incremental borrowing rate. Contingent rentals are recognized as expense in the periods in which they are incurred. As of December 31, 2017 and 2018, the Bank and its subsidiaries have not signed contracts of this nature. Operating leases payable are recognized as an expense on a straight-line basis over the lease term, which commences when the lessee controls the physical use of the property. Lease incentives are treated as a reduction of rental expense and are also recognized over the lease term on a straight-line basis. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred. |
Interest revenue and expense | (i) Interest revenue and expense: Interest revenue and expenses are recognized in the Consolidated Income Statement using the effective interest rate method. The effective interest rate is the rate which exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or financial liability. To calculate the effective interest rate, the Bank determines cash flows by taking into account all contractual conditions of the financial instrument, excluding future credit losses. The effective interest rate calculation includes all fees and other amounts paid or received that form part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the purchase or issuance of a financial asset or liability. |
Fees and commissions | (j) Fees and commissions: Revenue and expenses from fees are recognized in the Consolidated Income Statement using the criteria established in IFRS 15 "Revenue from contracts with customers". Under IFRS 15, revenues are recognized considering the terms of the contract with customers. Revenue is recognized when or as the performance obligation is satisfied by transferring the goods or services committed to the customer. Under IFRS 15, revenues are recognized using different criteria depending on their nature. The most significant are: · Those that correspond to a singular act, when the act that originates them takes place. · Those that originate in transactions or services that are extended over time, during the life of such transactions or services. · Commissions on loan commitments and other fees related to credit operations are deferred (together with the incremental costs directly related to the placement) and recognized as an adjustment to the effective interest rate of the placement. In the case of loan commitments, when there is no certainty of the date of effective placement, the commissions are recognized on a linear basis in the duration period of the commitment. The fees registered by the Bank correspond mainly to: · Commissions for lines of credit and overdrafts: these commissions are accrued in the period in which the lines of credit and overdrafts are granted. The Bank revenues are recognized at a point in time when performance obligation is satisfied. · Commissions for guarantees and letters of credit: these commissions are accrued in the period in which the payment guarantees for real or contingent obligations of third parties are granted. The Bank revenues are recognized over time when performance obligation is satisfied. · Commissions for card services: correspond to commissions earned and accrued during the period, related to the use of credit, debit and other cards. The Bank revenues are recognized at a point in time when performance obligation is satisfied. · Commissions for account management: includes commissions for the maintenance of current accounts and other deposit accounts. The Bank revenues are recognized over time when performance obligation is satisfied. · Commissions for collections, collections and payments: correspond to, collection and payments services provided by the Bank. The Bank revenues are recognized at a point in time when performance obligation is satisfied. · Commissions for intermediation and management of securities: correspond to income from brokerage service, placements, administration and custody of securities. The Bank revenues are recognized at a point in time when performance obligation is satisfied. · Remuneration for insurance commercialization: corresponds to income from the sale of insurance. The Bank revenues are recognized over time when performance obligation is satisfied. · Commissions for investments in mutual funds and others: corresponds to commissions originated in the administration of mutual funds. The Bank revenues are recognized at a point in time when performance obligation is satisfied. · Other commissions earned: Income generated by currency exchanges, financial advice, use of distribution channels, use of trademark agreement and placement of financial products and cash transfers, among others. The Bank revenues are recognized at a point in time when performance obligation is satisfied. The expense commissions registered by the Bank correspond mainly to: · Remuneration for card operations: corresponds to commissions paid for the operation of credit and debit cards. · Inter-bank transactions: corresponds to commissions paid to the automatic clearing house for transactions carried out. · Commissions for operations with securities: corresponds to commissions for deposit and custody of securities and brokerage of securities are included. · Other commissions: corresponds to commissions for collection, payments and other online services are included. |
Cash and cash equivalents | (k) Cash and cash equivalents: Cash and short-term deposits in the Statement of Financial Position comprise cash at banks and on hand and short-term deposits with original maturity of three months or less, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. The Bank has included as cash and cash equivalents to the account “Cash and due from banks”, plus (minus) the net balance of transactions in the course of collection that are shown in the Consolidated Statement Financial Position, plus short-term resale agreements and investments in fixed-income mutual funds that are presented in “Financial Assets held-for-trading” in the Consolidated Statement of Financial Position. |
Property and equipment | (l) Property and equipment: Property and equipment is stated at cost excluding servicing cost, less accumulated depreciation and accumulated impairment. Changes in the expected useful life are accounted for by changing the depreciation period or method, as appropriate, and treated as changes in accounting estimates. This cost includes expenses that have been directly attributed to the asset’s acquisition. Depreciation is recognized in net income on a straight-line basis over the estimated useful lives of each part of an item of property and equipment. Estimated useful lives for 2017 and 2018 are as follows: Buildings 50 years Installations (in general) 10 years Equipment 5 years Office furniture 5 years Property and equipment is derecognized on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in “Impairments” in the income statement in the year the asset is derecognized. |
Intangible assets | (m) Intangible assets: Intangible assets are identified as non-monetary assets (separated from other assets) without physical substance that arise as the result of a legal transaction or that are developed internally by the consolidated entities. They are assets whose cost can be reliably estimated and for which the consolidated entities consider that it is probable that future economic benefits will be recognized. (i) Goodwill Goodwill arises on the acquisition of subsidiaries and associates representing the excess of the fair value of the purchase consideration over the net fair value of the Bank’s share of the identifiable assets acquired and the liabilities and contingent liabilities assumed on the date of the acquisition. For the purpose of calculating goodwill, fair values of acquired assets, liabilities and contingent liabilities are determined by reference to market values or by discounting expected future cash flows to present value. This discounting is either performed using market rates or by using risk-free rates and risk-adjusted expected future cash flows. Goodwill originating from the acquisition of subsidiaries is capitalized and reviewed for impairment annually or more frequently if there are indications that impairment may have occurred. Impairment is determined by comparing the present value of expected future cash flows from each cash generating unit with the carrying value of its net assets, including attributable goodwill. Goodwill is allocated to cash generating units for the purpose of impairment testing considering the business level at which goodwill is monitored for internal management purposes. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. (ii) Software and computer programs Computer software purchased by the Bank and its subsidiaries is accounted for at cost less accumulated amortization and impairment losses. The subsequent expense in software assets is capitalized only when it increases the future economic benefit for the specific asset. All other expenses are capitalized as an expense as incurred. Amortization is recorded in income using the straight-line amortization method based on the estimated useful life of the software, from the date on which it is available for use. The estimated useful life of software is a maximum of 6 years. Expense for internally developed software is recorded in income for each year. |
Collateral repossessed (assets received in lieu of payment) | (n) Collateral repossessed (assets received in lieu of payment): Assets received in lieu of payment are classified under “Other Assets” and they are recorded at the lower of carrying amount and fair value, less cost to sell. Assets that are determined better to be sold are immediately transferred to assets held-for-sale at their fair value at the repossession date in line with the Bank’s policy. |
Investment Properties | (o) Investment Properties: Investment properties are real estate assets held to earn rental income or for capital appreciation or both, but are not held-for-sale in the ordinary course of business or used for administrative purposes. Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, they are carried at cost less accumulated depreciation and impairments using the same accounting policies as property and equipment. |
Deferred taxes and income taxes | (p) Deferred taxes and income taxes: The income tax provision of the Bank and its subsidiaries has been determined in conformity with current legal provisions. The Bank and its subsidiaries recognize, when appropriate, deferred tax assets and liabilities for future estimates of tax effects attributable to temporary differences between the book and tax values of assets and liabilities. Deferred tax assets and liabilities are measured based on the tax rate expected to be applied, in accordance with current tax law, in the year that deferred tax assets are realized or liabilities are settled. The effects of future changes in tax legislation or tax rates are recognized in deferred taxes starting on the date of publication of the law approving such changes. Deferred tax assets and liabilities are recorded at their book value as of the date the deferred taxes are measured. Deferred tax assets are recognized only when it is likely that future tax profits will be sufficient to recover deductions for temporary differences. |
Presentation and functional currency | (q) Presentation and functional currency: The items included in the financial statements of each of the entities of Banco de Chile and its subsidiaries are valued using the currency of the primary economic environment in which it operates (functional currency). The functional currency of Banco de Chile is the Chilean peso, which is also the currency used to present the entity’s consolidated financial statements. |
Transactions in foreign currency | (r) Transactions in foreign currency: Transactions in currencies other than the functional currency are considered to be in foreign currency and are initially recorded at the exchange rate of the functional currency on the transaction date. Monetary assets and liabilities denominated in foreign currencies are converted using the exchange rate of the functional currency as of the date of the Statement of Financial Position. All differences are recorded as a charge or credit to income. Assets and liabilities in foreign currencies are shown at their equivalent value in Chilean pesos, calculated using the following exchange rates as of December 31, 2017 and 2018: Ch$615.43 and Ch$693.60 to US$1, Ch$5.46 and Ch$6.29 per JPY1, Ch$739.32 and Ch$793.96 per EUR1. The gain of MCh$2,701 (MCh$104,875 in 2017) for net foreign exchange income shown in the Consolidated Statement of Comprehensive Income includes recognition of the effects of exchange rates variations on assets and liabilities in foreign currency or indexed to exchange rates, and the result of foreign exchange transactions conducted by the Bank and its subsidiaries. |
Debt issued and other financial liabilities | (s) Financial instruments issued by the Bank, which are not designated at fair value through profit or loss, are classified under "Debt issued", where the substance of the contractual arrangement results in the Bank having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of equity shares. 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 or premium on the issue and costs that are an integral part of the effective interest rate. The Bank applies the same accounting policies for its other financial liabilities. |
Derivative instruments | (t) Derivative instruments: Derivative instruments, which include foreign currency and UF forwards, interest rate forwards, currency and interest rate swaps, currency and interest rate options and other financial derivative instruments, are recorded in the Statement of Financial Position at fair value regardless of whether they are held-for-trading or for non-trading purposes. The fair value is obtained from market quotes, discounted cash flows models and options valuation models, as and where applicable. Derivative contracts are reported as an asset when their fair value is positive and as a liability when negative under the item “Derivative Instruments”. At inception, a derivative contract must be designated by the Bank as a derivative instrument for trading or hedging purposes. Changes in the fair value of derivative contracts held for trading purposes are recorded in “Net financial operating income”, in the Consolidated Statement of Comprehensive Income. If a derivative instrument is classified as a hedging instrument, it can be: (1) A hedge of the fair value of existing assets or liabilities or firm commitments, or (2) A hedge of cash flows related to existing assets or liabilities or forecasted transactions. A hedge relationship for hedge accounting purposes must comply with all of the following conditions: (a) at its inception, the hedge relationship has been formally documented; (b) it is expected that the hedge will be highly effective; (c) the effectiveness of the hedge can be measured in a reasonable manner; and (d) the hedge is highly effective with respect to the hedged risk on an ongoing basis and throughout the entire hedge relationship. Certain derivatives transactions that do not qualify for hedge accounting are treated and reported as derivatives for trading purposes even though they provide an effective hedge on the risk of net positions. Changes in the fair value of derivative contracts that qualify for hedge accounting are recorded, as follows: · If derivative contracts qualify for hedge accounting of changes in the fair value of assets, liabilities or unrecognized firm commitments (Fair Value Hedge), changes in the fair value of both the hedged asset (or liability) and the hedging derivative are recognized in the income statement under “Interest revenue and expenses” and/or “Foreign Exchange Transactions, Net”, depending on the risk being hedged. On the other hand, any ineffective portion of the Fair Value Hedge is recognized in the income statement under “Net Financial Operating Income.” · If derivative contracts qualify for hedge accounting of the variability of future cash flows from highly probable future transactions and/or floating rate assets or liabilities (Cash Flow Hedge), the changes in fair value are recorded in Equity under “Other Comprehensive Income”, to the extent that the hedge is effective. Changes in the fair value of the Cash Flow Hedge are subsequently reclassified to the income statement when and where the hedged item affects the Bank’s results (e.g. to Interest Revenues and Expenses and/or Foreign Exchange Transactions when the hedged instrument affects the income statement because of interest rate risk, or exchange rate risk, respectively). On the other hand, any ineffective portion of the Cash Flow Hedge is recognized in the comprehensive statement of income under the “Net Financial Operating Income” line item. Finally, if the hedging instrument does not continue qualifying for hedge accounting and/or it is terminated, sold, suspended or executed, the hedge accounting is discontinued prospectively. In this case, gains/losses already accrued will remain in Equity until the expected transactions occur. In that moment, gains/losses will be recorded in the Income Statement (under “Interest Revenues or Expenses” and/or “Foreign Exchange Transactions” depending on the risk being hedged) as long as transactions occur. Otherwise, if transactions are expected to fail, the changes in fair value are immediately recognized in the Income Statement (under “Interest Revenues or Expenses” and/or “Foreign Exchange Transactions” depending on the risk that was used to be hedged).” |
Securities lending and borrowed | (u) Securities lending and borrowed: The Bank engages in transactions involving repurchase agreements as a form of investment. The securities purchased under these agreements are not recognized on the Bank’s Statement of Financial Position. The consideration paid is recognized under “Receivables from Resale Agreements and Security Lending” reflecting the transaction’s economic substance as a loan granted by the Bank. The difference between the purchase and the resale price is recorded in “Net Interest Income” and is accrued over the duration of the agreement using its effective interest rate. This treatment reflects the economic substance as a loan to the Bank. The Bank also enters into security repurchase agreements as a form of financing. The securities sold under repurchase agreement at a specific date in the future are not derecognized from the Statement of Financial Position because the Bank retains all the risks and rewards of the ownership of the securities. The corresponding cash received is recognized in the balance sheet as an asset, and the corresponding obligation to return the cash, including any accrued interest, is recognized as a liability under “Payables from Repurchase Agreements and Security Lending”. The difference between the sale and the repurchase price is treated as “Interest Expense” and is accrued over the duration of the agreement using the effective interest rate. The treatment of secured lending and financing transactions follows the principles laid out above. Securities borrowed are not recorded in the Statement of Financial Position and, securities loaned are not derecognized from the Statement of Financial Position. |
Customer loyalty programs | (v) Customer loyalty programs: The Bank maintains a loyalty program to provide incentives to its customers, which allows acquiring goods and/or services, based on the exchange of prize points ("Dolares-Premio"), which are granted based on the purchases made with Bank's credit cards and the compliance of certain conditions established in said program. The consideration for the prizes is made by a third party. In accordance with IFRS 15, these associated benefit plans have the necessary provisions to meet the delivery of committed future performance obligations. |
Provisions and contingent liabilities | (w) Provisions and contingent liabilities: Provisions are liabilities that are characterized by uncertainty in either their amount or maturity. Provisions are recorded in the Statement of Financial Position when the following requirements are jointly met: (i) a present obligation has arisen from a past event and, (ii) as of the date of the financial statements it is likely that the Bank or its subsidiaries have to disburse resources to settle the obligation and, (iii) the amount can be reliably measured. A contingent asset or liability is any right or obligation that arises from past events whose existence will be confirmed by one or more uncertain future events which are not within the control of the Bank. Contingent assets and liabilities are not recognized in the Statement of Financial Position according to the above mentioned requirements. |
Provision for minimum dividends | (x) Provisions for minimum dividends: According with the Compendium of Accounting Standards of the SBIF, the Bank records within liabilities the portion of net income for the year that should be distributed to comply with the Corporations Law or its dividend policy. For these purposes, the Bank establishes a provision in a complementary equity account within retained earnings. Distributable net income is considered for the purpose of calculating a minimum dividends provision, which in accordance with the Bank’s bylaws is defined as that which results from reducing or adding to net income the value of price-level restatement for the concept of restatement or adjustment of paid-in capital and reserves for the year. |
Employee benefits | (y) Employee benefits: (i) Staff accrued vacations The annual costs of vacations and staff benefits are recognized on an accrual basis. (ii) Short-term benefits The Bank has a yearly bonus plan for its employees based on their ability to meet objectives and their individual contribution to the company’s results, consisting of a given number or portion of monthly salaries. It is provisioned for based on the estimated amount to be distributed. (iii) Staff severance indemnities Banco de Chile has recorded a liability for long-term severance indemnities in accordance with employment contracts it has with certain employees. The liability, which is payable to specified retiring employees with over 30 years of service, is recorded at the present value of the accrued benefits, which are calculated by applying a real discount rate to the benefit accrued as of year-end over the estimated average remaining service period. Obligations for this defined benefits plan are valued according to the projected unit credit actuarial valuation method, using inputs such as staff turnover rates, expected salary growth in wages and probability that this benefit will be used, discounted at current long-term rates ( 4.53% as of December 31, 2017 and 4.25% as of December 31, 2018). The discount rate used corresponds to the rate of 10-year Chilean Central Bank Bonds in pesos (BCP). Actuarial gains and losses are recognized as other comprehensive income at the end of each reporting period. There is no past service costs that would have to be recognized by the Bank. |
Equity reserves | (z) Equity reserves: The equity reserves recorded in the Bank’s Statement of Financial Position include: Reserves from Earnings: This item includes all the reserves that were originated from earnings and that by legal or statutory dispositions, or agreements of the shareholders’ meeting, will not be distributed in the form of future dividends. Other reserves: This item includes all the reserves that do not come from earnings and that do not correspond to those indicated in previous items. Unrealized gains (losses) on financial assets at fair value through other comprehensive income: This item comprises changes in the fair value of these instruments. |
Earnings per share | (aa) Earnings per share: Basic earnings per share is determined by dividing net income for the year attributable to the Bank by the average weighted number of shares in circulation during that period. Diluted earnings per share are determined similarly to basic earnings, but the weighted average number of outstanding shares is adjusted to take into account the potential dilutive effect of the options on shares, warrants and convertible debt. As of December 31, 2018 and 2017 there are no concepts to adjust. |
Segment reporting | (ab) Segment reporting: The Bank’s operating segments are defined based on its different business units, considering the following factors: (i) That it develops business activities from which income is obtained and expenses are incurred (including income and expenses relating to transactions with other components of the same entity); (ii) That its operating results are reviewed regularly by the entity’s highest decision-making authority for operating decisions, to determine resource allocation for the segment and evaluate its performance; and (iii) That separate financial information is available. |
Fiduciary activities | (ac) Fiduciary activities: The Bank provides trust and other fiduciary services that result in the holding or investing of assets on behalf of the clients. Assets held in a fiduciary capacity are not reported in the financial statements, as they are not the assets of the Bank. |
Identifying and measuring impairment on non-financial assets | (ad) Identifying and measuring impairment on non-financial assets The Bank assesses at each reporting date and on an ongoing basis whether there is an indication that an asset may be impaired. If any indication exists, or if annual impairment testing for an asset is required, the Bank estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, share prices and other available fair value indicators. For assets, excluding goodwill, impairment losses recognized in prior years are assessed at each reporting date in case there are any indications that the loss has decreased or disappeared. A previously recognized impairment is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment was recognized. An impairment loss is 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. Such reversal is recognized in the income statement. Impairment losses relating to goodwill cannot be reversed in future periods. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Schedule of entities in which bank directly or indirectly owns a controlling interest | Interest Owned Direct Indirect Total Functional 2017 2018 2017 2018 2017 2018 RUT Subsidiaries Country Currency % % % % % % 96,767,630-6 Banchile Administradora General de Fondos S.A. Chile Ch$ 99.98 99.98 0.02 0.02 100.00 100.00 96,543,250-7 Banchile Asesoría Financiera S.A. Chile Ch$ 99.96 99.96 — — 99.96 99.96 77,191,070-K Banchile Corredores de Seguros Ltda. Chile Ch$ 99.83 99.83 0.17 0.17 100.00 100.00 96,571,220-8 Banchile Corredores de Bolsa S.A. Chile Ch$ 99.70 99.70 0.30 0.30 100.00 100.00 96,932,010-K Banchile Securitizadora S.A. Chile Ch$ 99.01 99.01 0.99 0.99 100.00 100.00 96,645,790-2 Socofin S.A. Chile Ch$ 99.00 99.00 1.00 1.00 100.00 100.00 |
Schedule of maximum period for write-offs of loans | Type of Loan Term Consumer loans – secured and unsecured 6 months Other transactions – unsecured 24 months Commercial loans – secured 36 months Residential mortgage loans 48 months Consumer leases 6 months Other non-real estate lease transactions 12 months Real estate leases (commercial or residential) 36 months |
Schedule of estimated useful lives | Buildings 50 years Installations (in general) 10 years Equipment 5 years Office furniture 5 years |
Transition disclosures (Tables)
Transition disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transition disclosures | |
Disclosure of redesignated financial assets and liabilities [text block] | As of December 31, 2017 As of January 1, 2018 IAS 39 IFRS 9 Measurement Remeasurement Measurement Category Amount Reclassification ECL Amount Category MCh$ Ref MCh$ Ref MCh$ MCh$ ASSETS Cash and due from banks L&R 1,057,393 — — 1,057,393 AC Transactions in the course of collection L&R 255,968 — — 255,968 AC Financial assets held-for-trading FVPL 1,538,578 78,069 — 1,616,647 FVPL From: Other assets A 78,069 — Cash collateral on securities borrowed and reverse repurchase agreements L&R 91,641 — — 91,641 AC Derivative instruments FVPL 1,247,941 — — 1,247,941 FVPL Loans and advance to banks L&R 760,021 D (508) 759,513 AC Loans to customers, net L&R 24,955,692 — D (73,817) 24,881,875 AC Financial assets available-for-sale L&R 1,526,315 (1,526,315) — N/A To: Financial instruments at fair value through OCI - Equity B (10,252) — To: Financial instruments at fair value through OCI- Debt C (1,516,063) — Financial assets at fair value through OCI N/A 1,526,315 — 1,526,315 FVOCI From: Financial assets available-for-sale - Equity B 10,252 — From: Financial assets available-for-sale - Debt C 1,516,063 — Investments in other companies 35,771 — — 35,771 Intangible assets 72,455 — — 72,455 Property and equipment 216,259 — — 216,259 Investments properties 14,306 — — 14,306 Current tax assets 23,032 — — 23,032 Deferred tax assets, net 161,265 — E 23,200 184,465 Other assets 604,800 (78,069) — 526,731 To: Financial assets held-for-trading A (78,069) — TOTAL ASSETS 32,561,437 — (51,125) 32,510,312 AC L&R FVPL FVOCI As of December 31, 2017 As of January 1, 2018 IAS 39 IFRS 9 Measurement Remeasurement Measurement Category Amount Reclassification ECL Amount Category MCh$ Ref MCh$ Ref MCh$ MCh$ LIABILITIES Current accounts and other demand deposits AC 8,915,706 — — 8,915,706 AC Transactions in the course of payments AC 29,871 — — 29,871 AC Cash collateral on securities lent and repurchase agreements AC 195,392 — — 195,392 AC Saving accounts and time deposits AC 10,067,778 — — 10,067,778 AC Derivate instruments FVPL 1,392,995 — — 1,392,995 FVPL Borrowings from financial institutions AC 1,195,028 — — 1,195,028 AC Debt issued AC 6,488,975 — — 6,488,975 AC Other financial obligations AC 137,163 — — 137,163 AC Current tax liabilities 3,453 — — 3,453 Provisions 194,537 F 11,374 D 11,601 217,512 Employee benefits 86,628 — — 86,628 Other liabilities 308,563 F (11,374) — 297,189 TOTAL LIABILITIES 29,016,089 — 11,601 29,027,690 EQUITY Attributable to equity holders of the parent: Capital 2,271,401 — — 2,271,401 Reserves 809,557 — — 809,557 Other comprehensive income 127 G 4,249 — 4,376 Retained earnings: — — Retained earnings from previous periods 64,986 G (4,249) H (62,726) (1,989) Income for the year 572,080 — — 572,080 Less: Provisions for minimum dividend (172,804) — — (172,804) Non-controlling interest 1 — — 1 TOTAL EQUITY 3,545,348 — (62,726) 3,482,622 TOTAL LIABILITIES AND EQUITY 32,561,437 — (51,125) 32,510,312 AC L&R FVPL FVOCI |
Schedule of IFRS 9 impact on other comprehensive income and retained earnings | Reserves and retained earnings MCh$ Unrealized gains (losses) on financial assets at FV through OCI Closing balance under IAS 39 (December 31, 2017) 9,521 Recognition of ECL under IFRS 9 for debt financial assets at FVOCI 5,820 Deferred tax in relation to the above (1,571) Opening balance under IFRS 9 (January 1, 2018) 13,770 Retained earnings from previous periods Closing balance under IAS 39 (December 31, 2017) 464,262 Recognition of IFRS 9 ECLs for loans and contingent loan risks (85,926) Recognition of IFRS 9 ECLs for financial assets at FVOCI (5,820) Deferred tax in relation to the above 24,771 Opening balance under IFRS 9 (January 1, 2018) 397,287 Total change in equity due to adopting IFRS 9 (62,726) |
Schedule of reconciliation of allowances and provisions on adoption of IFRS 9 | Provision under IAS 39 / IAS 37 ECLs under IFRS 9 at 31 December 2017 Remeasurement at 1 January 2018 MCh$ MCh$ MCh$ Due from banks (264) (508) (772) Loans to Customers Commercial loans (221,229) (181) (221,410) Mortgage loans (32,015) (1,762) (33,777) Consumer loans (242,577) (71,874) (314,451) Subtotal due from banks and loans to customers (496,085) (74,325) (570,410) Financial guarantees (11,205) 7,273 (3,932) Letter of credit for customers (169) 97 (72) Undrawn credit lines — (18,971) (18,971) Subtotal contingent loan risks (11,374) (11,601) (22,975) Debt instruments at fair value through OCI — (5,820) (5,820) Subtotal financial assets at FVOCI — (5,820) (5,820) Total Allowances / Provisions (507,459) (91,746) (599,205) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting | |
Segment Reporting | As of December 31, 2016 Reclassifications and adjustments to Retail Wholesale Treasury Subsidiaries Subtotal conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 873,669 346,829 4,207 (4,337) 1,220,368 6,365 1,226,733 Net fees and commissions income 170,529 42,202 (2,473) 121,383 331,641 (10,370) 321,271 Other operating income 93,135 33,322 44,754 23,923 195,134 (25,579) 169,555 Total operating revenue 1,137,333 422,353 46,488 140,969 1,747,143 (29,584) (1) 1,717,559 Provisions for loan losses (301,491) (8,243) ― (1) (309,735) 50,472 (2) (259,263) Depreciation and amortization (25,229) (4,912) (172) (2,976) (33,289) (2,286) (3) (35,575) Other operating expenses (504,041) (152,859) (5,596) (104,847) (767,343) 15,871 (4) (751,472) Income attributable to associates 3,078 914 79 442 4,513 (499) 4,014 Income before income taxes 309,650 257,253 40,799 33,587 641,289 33,974 675,263 Income taxes (89,040) (11,172) (5) (100,212) Income after income taxes 552,249 22,802 575,051 Assets 15,198,634 11,526,685 4,121,333 535,727 31,382,379 (208,655) 31,173,724 Current and deferred taxes 288,370 (104,790) 183,580 Total assets 31,670,749 (313,445) (6) 31,357,304 Liabilities 10,234,712 10,277,326 7,880,847 390,453 28,783,338 (733,708) 28,049,630 Current and deferred taxes ― ― ― Total liabilities 28,783,338 (733,708) (7) 28,049,630 Reclassifications and adjustments to conform IFRS (1) The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(12,349). In addition the total effect of IFRS adjustments is MCh$(17,235) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. (2) The total effect relates to IFRS adjustments of MCh$50,472, which mainly stems from differing allowances for loan losses. (3) The total effect relates to IFRS adjustments of MCh$(2,286), which stems from the amortization of intangibles and depreciation of property and equipment acquired through business combinations. (4) The total effect due to the elimination adjustments to conform other operating expenses is MCh$12,349. In addition the total effect of IFRS adjustments is MCh$3,522, which represents reversal of write-offs of assets received in lieu of payments. (5) The total effect relates to IFRS adjustments of MCh$(11,172), which stems from deferred taxes. (6) The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(137,201). In addition the total effect of IFRS adjustments in assets is MCh$(176,244), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection. (7) The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(137,201). In addition the total effect of IFRS adjustments in liabilities is MCh$(596,507), which mainly stems from provision for minimum dividends and differing allowances for loan losses. As of December 31, 2017 Reclassifications and adjustments Retail Wholesale Treasury Subsidiaries Subtotal to conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 930,539 322,431 (21,169) (4,336) 1,227,465 7,230 1,234,695 Net fees and commissions income 184,049 43,443 (4,306) 135,987 359,173 (11,499) 347,674 Other operating income 19,095 34,712 56,328 26,884 137,019 (31,846) 105,173 Total operating revenue 1,133,683 400,586 30,853 158,535 1,723,657 (36,115) (1) 1,687,542 Provisions for loan losses (256,262) 21,415 — (135) (234,982) 13,727 (2) (221,255) Depreciation and amortization (27,669) (4,547) (141) (2,894) (35,251) (2,285) (3) (37,536) Other operating expenses (507,771) (153,360) (5,022) (102,281) (768,434) 21,614 (4) (746,820) Income attributable to associates 4,372 1,026 108 551 6,057 (546) 5,511 Income before income taxes 346,353 265,120 25,798 53,776 691,047 (3,605) 687,442 Income taxes (115,034) (327) (5) (115,361) Income after income taxes 576,013 (3,932) 572,081 Assets 16,099,926 10,558,278 5,469,829 637,860 32,765,893 (388,753) 32,377,140 Current and deferred taxes 290,432 (106,135) 184,297 Total assets 33,056,325 (494,888) (6) 32,561,437 Liabilities 10,380,250 10,272,607 8,815,056 479,244 29,947,157 (934,521) 29,012,636 Current and deferred taxes 3,453 — 3,453 Total liabilities 29,950,610 (934,521) (7) 29,016,089 Reclassifications and adjustments to conform IFRS (1) (2) (3) (4) (5) (6) (7) As of December 31, 2018 Reclassifications and adjustments Retail Wholesale Treasury Subsidiaries Subtotal to conform IFRS Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Note MCh$ Net interest income 969,910 357,712 (2,414) (8,995) 1,316,213 4,764 1,320,977 Net fees and commissions income 184,545 45,905 (4,031) 145,704 372,123 (12,168) 359,955 Other operating income 43,290 59,376 63,929 33,341 199,936 (34,798) 165,138 Total operating revenue 1,197,745 462,993 57,484 170,050 1,888,272 (42,202) (1) 1,846,070 Provisions for loan losses (287,165) 5,637 ― 118 (281,410) 30,087 (2) (251,323) Depreciation and amortization (29,571) (5,008) (91) (3,011) (37,681) ― (37,681) Other operating expenses (561,512) (152,921) (4,693) (105,906) (825,032) 24,557 (3) (800,475) Income attributable to associates 5,450 1,224 119 462 7,255 (444) 6,811 Income before income taxes 324,947 311,925 52,819 61,713 751,404 11,998 763,402 Income taxes (156,531) (3,237) (4) (159,768) Income after income taxes 594,873 8,761 603,634 Assets 16,425,068 10,592,117 8,093,850 925,440 36,036,475 (612,545) 35,423,930 Current and deferred taxes 278,599 (85,082) 193,517 Total assets 36,315,074 (697,627) (5) 35,617,447 Liabilities 10,369,534 9,873,018 11,982,709 764,736 32,989,997 (1,067,190) 31,922,807 Current and deferred taxes 20,924 ― 20,924 Total liabilities 33,010,921 (1,067,190) (6) 31,943,731 Reclassifications and adjustments to conform IFRS (1) The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(14,989). In addition the total effect of IFRS adjustments is MCh$(27,213) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition. (2) The total effect relates to IFRS adjustments of MCh$30,087, which mainly stems from differing allowances for loan losses. (3) The total effect due to the elimination adjustments to conform other operating expenses is MCh$14,989. In addition the total effect of IFRS adjustments is MCh$9,568, which mainly represents reversal of write-offs of assets received in lieu of payments. (4) The total effect relates to IFRS adjustments of MCh$(3,237), which stems from deferred taxes. (5) The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(388,615). In addition the total effect of IFRS adjustments in assets is MCh$(309,012), which mainly stems from deviating allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection. (6) The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(388,615). In addition the total effect of IFRS adjustments in liabilities is MCh$(678,575), which mainly stems from provision for minimum dividends and differing allowances for loan losses. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents | |
Schedule of reconciliation of cash and cash equivalents to statement of cash flows | 2017 2018 MCh$ MCh$ Cash and due from banks: Cash (*) 522,869 624,862 Current account with the Central Bank (*) 162,421 121,807 Deposits in other domestic banks 9,922 26,698 Deposits abroad 362,181 106,714 Subtotal - Cash and due from banks 1,057,393 880,081 Transactions in the course of collection 226,097 244,758 Highly liquid financial instruments (**) 78,069 83,807 Repurchase agreements 76,839 72,632 Total cash and cash equivalents 1,438,398 1,281,278 (*) Amounts in cash and Central Bank deposits are mandatory reserve deposits for which the Bank must maintain a minimum specified monthly average balance. (**) It corresponds to negotiation instruments and investment instruments, whose terms do not exceed three months from the date of acquisition. |
Schedule of highly liquid financial instruments | 2017 2018 MCh$ MCh$ Highly liquid financial instruments: Financial Assets Held-for-trading 78,069 83,807 Total 78,069 83,807 |
Schedule of transactions in the course of collection | 2017 2018 MCh$ MCh$ Assets Documents drawn on other banks (clearing) 204,624 210,743 Funds receivable 51,344 78,451 Subtotal transactions in the course of collection 255,968 289,194 Liabilities Funds payable (29,871) (44,436) Subtotal transactions in the course of payment (29,871) (44,436) Total transactions in the course of collection 226,097 244,758 |
Financial Assets Held-for-Tra_2
Financial Assets Held-for-Trading (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets Held-for-Trading | |
Financial Assets Held-for-Trading | 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Central Bank bonds 400,368 24,906 Central Bank promissory notes 662,190 1,410,080 Other instruments issued by the Chilean Government and Central Bank 254,606 88,486 Other instruments issued in Chile Bonds from other domestic companies ― 7,532 Bonds from domestic banks 2,070 20,186 Deposits in domestic banks 218,307 100,226 Other instruments issued in Chile 715 1,663 Instruments issued by foreign institutions Other instruments issued abroad 322 4,446 Mutual fund investments Funds managed by related companies — 87,841 Funds managed by third-party — ― Total 1,538,578 1,745,366 |
Cash collateral on securities_2
Cash collateral on securities and reverse repurchase agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash collateral on securities and reverse repurchase agreements | |
Schedule of receivables from repurchase agreements and security borrowing | As of December 31, 2017 and 2018, the Bank has the following receivables resulting from such transactions: Over 1 month and Over 3 months and Over 1 year and Over 3 years and Up to 1 month up to 3 months up to 12 months up to 3 years up to 5 years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Instruments issued by the Chilean Governments and Central Bank of Chile Central Bank bonds 4,114 — — — — — — — — — — — 4,114 — Central Bank promissory notes — 742 — — — — — — — — — — — 742 Other instruments issued by the Chilean Government and Central Bank 2,576 — — — — — — — — — — — 2,576 — Subtotal 6,690 742 — — — — — — — — — — 6,690 742 Other Instruments issued in Chile Deposit promissory notes from domestic banks — — — — — — — — — — — — — — Mortgage bonds from domestic banks — — — — — — — — — — — — — — Bonds from domestic banks — 367 — — — — — — — — — — — 367 Deposits in domestic banks 13,297 2,053 — — — — — — — — — — 13,297 2,053 Bonds from other Chilean companies — — — — — — — — — — — — — — Other instruments issued in Chile 47,357 70,334 19,207 16,918 5,090 6,875 — — — — — — 71,654 94,127 Subtotal 60,654 72,754 19,207 16,918 5,090 6,875 — — — — — — 84,951 96,547 Instruments issued by foreign institutions Instruments from foreign governments or Central Bank — — — — — — — — — — — — — — Other instruments — — — — — — — — — — — — — — Subtotal — — — — — — — — — — — — — — Total 67,344 73,496 19,207 16,918 5,090 6,875 — — — — — — 91,641 97,289 |
Schedule of Payables by Selling financial instruments and Security Repurchase commitment | As of December 31, 2017 and 2018, the Bank has the following payables resulting from such transactions: Over 1 month and Over 3 months and Over 1 year and Over 3 years and Up to 1 month up to 3 months up to 12 months up to 3 years up to 5 years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Instruments issued by the Chilean Governments and Central Bank of Chile Central Bank bonds 5,169 130,197 — — — — ― — — — — — 5,169 130,197 Central Bank promissory notes 5,095 — — — — — ― — — — — — 5,095 — Other instruments issued by the Chilean Government and Central Bank — — — — — — ― — — — — — — — Subtotal 10,264 130,197 — — — — — — — — — — 10,264 130,197 Other Instruments issued in Chile Deposit promissory notes from domestic banks — — — — — — ― — — — — — — — Mortgage bonds from domestic banks — — — — — — ― — — — — — — — Bonds from domestic banks 2,013 — — — — — ― — — — — — 2,013 — Deposits in domestic banks 114,359 162,167 — 1,448 56,762 5,210 ― — — — — — 171,121 168,825 Bonds from other Chilean companies — — — — — — ― — — — — — — — Other instruments issued in Chile 11,994 4,798 — — — — ― — — — — — 11,994 4,798 Subtotal 128,366 166,965 — 1,448 56,762 5,210 — — — — — — 185,128 173,623 Instruments issued by foreign institutions Instruments from foreign governments or central bank — — — — — — ― — — — — — — — Other instruments issued by foreign — — — — — — ― — — — — — — — Subtotal — — — — — — — — — — — — — — Total 138,630 297,162 — 1,448 56,762 5,210 — — — — — — 195,392 303,820 |
Derivative Instruments and Ac_2
Derivative Instruments and Accounting Hedges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Accounting Hedges | |
Schedule of Bank's portfolio of derivative instruments | As of December 31, 2017 Notional amount Fair value contract Asset Liability MCh$ MCh$ MCh$ Derivatives held for hedging of fair value Cross currency swap 13,914 — 3,652 Interest rate swap 78,970 277 1,678 Total derivatives held for hedging purposes 92,884 277 5,330 Derivatives held as cash flow hedges Interest rate swap and cross currency swap 1,148,561 27,572 80,888 Total Derivatives held as cash flow hedges 1,148,561 27,572 80,888 Derivatives held-for-trading purposes Currency forward 29,451,333 506,614 574,931 Interest rate forward 14,000 ― 206 Interest rate swap 55,617,104 243,931 236,954 Cross currency swap 11,281,240 466,192 490,811 Call currency options 153,776 514 472 Put currency options 145,873 2,841 3,403 Total derivatives held-for-trading purposes 96,663,326 1,220,092 1,306,777 Total 97,904,771 1,247,941 1,392,995 As of December 31, 2018 Notional amount Fair value contract Asset Liability MCh$ MCh$ MCh$ Derivatives held for hedging of fair value Cross currency swap 11,132 — 3,012 Interest rate swap 226,954 1,116 3,152 Total derivatives held for hedging purposes 238,086 1,116 6,164 Derivatives held as cash flow hedges Interest rate swap and cross currency swap 1,137,457 34,298 31,818 Total Derivatives held as cash flow hedges 1,137,457 34,298 31,818 Derivatives held-for-trading purposes Currency forward 35,690,464 735,444 631,089 Interest rate forward ― ― ― Interest rate swap 72,330,827 287,611 284,840 Cross currency swap 13,982,890 450,519 569,868 Call currency options 229,175 4,839 2,921 Put currency options 192,553 120 1,534 Total derivatives held-for-trading purposes 122,425,909 1,478,533 1,490,252 Total 123,801,452 1,513,947 1,528,234 |
Schedule of Details of the Hedged elements and hedge instruments under fair value hedges | As of December 31, 2017 2018 MCh$ MCh$ Notional Amounts Hedged element Commercial loans 13,914 11,132 Corporate bonds 78,970 226,954 Hedge instrument Cross currency swap 13,914 11,132 Interest rate swap 78,970 226,954 |
Schedule of cash flows of borrowings from banks and bonds issued abroad, the objects of these hedges and the cash flows of the asset part of the derivative | Over 1 month Over 3 months Over 1 year Over 3 years and up to 3 and up to 12 and up to 3 and up to 5 Up to 1 month months months years years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Hedge element Outflows: Corporate Bond EUR — — — — (1,246) (1,338) (2,491) (2,675) (2,491) (2,675) (82,348) (87,097) (88,576) (93,785) Corporate Bond HKD — — — — (11,052) (66,378) (68,634) (21,601) (19,202) (83,608) (298,776) (263,206) (397,664) (434,793) Corporate Bond CHF — — (986) (89,256) (161,529) (125,993) (192,519) (1,450) (474) (82,552) (95,174) (106,050) (450,682) (405,301) Corporate Bond USD — — — — — (1,476) — (2,952) — (2,952) — (42,060) — (49,440) Obligation USD (212) (870) (235) (86) (93,173) (49,401) (43,385) (105,622) — — — — (137,005) (155,979) Corporate Bond JPY — — (292) (49,362) (1,150) (1,072) (72,098) (33,487) (28,886) (32,882) (63,002) (71,830) (165,428) (188,633) Hedge instrument Inflows: Cross Currency Swap EUR — — — — 1,246 1,338 2,491 2,675 2,491 2,675 82,348 87,097 88,576 93,785 Cross Currency Swap HKD — — — — 11,052 66,378 68,634 21,601 19,202 83,608 298,776 263,206 397,664 434,793 Cross Currency Swap CHF — — 986 89,256 161,529 125,993 192,519 1,450 474 82,552 95,174 106,050 450,682 405,301 Cross Currency Swap USD — — — — — 1,476 — 2,952 — 2,952 — 42,060 — 49,440 Cross Currency Swap USD 212 870 235 86 93,173 49,401 43,385 105,622 — — — — 137,005 155,979 Cross Currency Swap JPY — — 292 49,362 1,150 1,072 72,098 33,487 28,886 32,882 63,002 71,830 165,428 188,633 Net cash flows — — — — — — — — — — — — — — |
Schedule of cash flows of the underlying assets portfolio and the cash flow of the liability | Over 1 month Over 3 months Over 1 year Over 3 years and up to 3 and up to 12 and up to 3 and up to 5 Up to 1 month months months years years Over 5 years Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Hedge element Inflows: Cash flows in CLF — — 2,344 144,458 281,377 237,340 414,764 173,263 59,737 195,590 555,461 542,523 1,313,683 1,293,174 Hedge instrument Outflows: Cross Currency Swap HKD — — — — (9,404) (59,667) (66,188) (16,835) (16,365) (68,362) (285,066) (233,286) (377,023) (378,150) Cross Currency Swap JPY — — (1,061) (50,247) (3,372) (2,740) (85,598) (37,432) (35,063) (35,213) (77,895) (78,611) (202,989) (204,243) Cross Currency Swap USD — — — — (111,077) (47,797) (44,840) (107,893) — (1,243) — (36,888) (155,917) (193,821) Cross Currency Swap CHF — — (1,283) (94,211) (155,767) (125,325) (214,620) (7,482) (4,793) (87,164) (107,870) (108,488) (484,333) (422,670) Cross Currency Swap EUR — — — — (1,757) (1,811) (3,518) (3,621) (3,516) (3,608) (84,630) (85,250) (93,421) (94,290) Net cash flows — — — — — — — — — — — — — — |
Loans and Advances to Banks, _2
Loans and Advances to Banks, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |
Schedule of loans and advance to banks, net | 2017 2018 MCh$ MCh$ Domestic Banks Interbank loans 120,017 100,023 Other credits with domestic banks — — Provisions for loans to domestic banks (19) (247) Subtotal 119,998 99,776 Foreign Banks Loans to foreign banks 187,006 239,797 Credits with third countries 61,091 41,872 Chilean export trade banks 41,255 12,873 Provisions for loans to foreign banks (245) (765) Subtotal 289,107 293,777 Central Bank of Chile Central Bank deposits 350,000 1,100,306 Other Central Bank credits 916 525 Subtotal 350,916 1,100,831 Total 760,021 1,494,384 |
Schedule of impairment allowance for due from banks | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total Total MCh$ MCh$ MCh$ MCh$ MCh$ Domestic Banks Normal 100,023 — — 100,023 120,017 Substandard — — — — — Non-complying — — — — — Subtotal 100,023 — — 100,023 120,017 Foreign Banks Normal 266,648 27,894 — 294,542 289,352 Substandard — — — — — Non-complying — — — — — Subtotal 266,648 27,894 — 294,542 289,352 Central Bank of Chile Normal 1,100,831 — — 1,100,831 350,916 Substandard — — — — — Non-complying — — — — — Subtotal 1,100,831 — — 1,100,831 350,916 Total 1,467,502 27,894 — 1,495,396 760,285 ii. 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ Gross Carrying amount as at 1 January 2018 760,285 — — 760,285 Net change on gross carrying amount * 746,808 1,376 — 748,184 Transfer to Stage 1 — — — — Transfer to Stage 2 (26,518) 26,518 — — Transfer to Stage 3 — — — — Amounts written off — — — — Foreign exchange adjustments (13,073) — — (13,073) Total 1,467,502 27,894 — 1,495,396 * Net change between assets originated and assets repaid, excluding write offs. iii. 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ ECL allowances as at 1 January 2018 772 — — 772 Net change on ECL allowances * 250 9 — 259 Transfer to Stage 1 — — — — Transfer to Stage 2 (63) 63 — — Transfer to Stage 3 — — — — Impact on year end ECL of exposures transferred between stages during the year ** — 3 — 3 Amounts written off — — — — Foreign exchange adjustments (22) — — (22) Total 937 75 — 1,012 * Net allowances change between assets originated and assets repaid, excluding write offs. ** Represents the change in the year-end ECLs of exposures that were transfered from one stage to another during the year. |
Loans and advances to banks, net | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total Total MCh$ MCh$ MCh$ MCh$ MCh$ Domestic Banks Normal 100,023 — — 100,023 120,017 Substandard — — — — — Non-complying — — — — — Subtotal 100,023 — — 100,023 120,017 Foreign Banks Normal 266,648 27,894 — 294,542 289,352 Substandard — — — — — Non-complying — — — — — Subtotal 266,648 27,894 — 294,542 289,352 Central Bank of Chile Normal 1,100,831 — — 1,100,831 350,916 Substandard — — — — — Non-complying — — — — — Subtotal 1,100,831 — — 1,100,831 350,916 Total 1,467,502 27,894 — 1,495,396 760,285 |
Loans to Customers, net (Tables
Loans to Customers, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |
Schedule of loans to customers, net | As of December 31, 2017 As of December 31, 2018 Assets Assets before Allowances before Allowances Allowances established Net assets Allowances established Net assets MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Commercial loans 10,568,435 (160,995) 10,407,440 11,496,591 (175,122) 11,321,469 Foreign trade loans 983,796 (26,582) 957,214 1,313,001 (12,922) 1,300,079 Current account debtors 270,968 (8,177) 262,791 222,218 (9,116) 213,102 Factoring transactions 646,835 (6,327) 640,508 701,005 (4,017) 696,988 Student loans 46,024 (1,319) 44,705 51,919 (1,441) 50,478 Commercial lease transactions (1) 1,381,516 (11,478) 1,370,038 1,571,999 (15,778) 1,556,221 Other loans and accounts receivable 63,244 (6,351) 56,893 81,665 (10,468) 71,197 Subtotal 13,960,818 (221,229) 13,739,589 15,438,398 (228,864) 15,209,534 Mortgage loans Mortgage bonds 29,784 (11) 29,773 21,443 (221) 21,222 Transferable mortgage loans 54,079 (58) 54,021 42,313 (226) 42,087 Other residential real estate mortgage loans 7,384,797 (31,729) 7,353,068 7,978,092 (33,875) 7,944,217 Credits from ANAP 8 — 8 6 ― 6 Other loans and accounts receivable 8,568 (217) 8,351 10,219 (8) 10,211 Subtotal 7,477,236 (32,015) 7,445,221 8,052,073 (34,330) 8,017,743 Consumer loans Consumer loans in installments 2,538,740 (175,293) 2,363,447 2,957,493 (263,542) 2,693,951 Current account debtors 316,678 (10,446) 306,232 312,783 (12,868) 299,915 Credit card debtors 1,157,131 (56,525) 1,100,606 1,165,064 (45,254) 1,119,810 Consumer lease transactions — — — 9 ― 9 Other loans and accounts receivable 910 (313) 597 812 (520) 292 Subtotal 4,013,459 (242,577) 3,770,882 4,436,161 (322,184) 4,113,977 Total 25,451,513 (495,821) 24,955,692 27,926,632 (585,378) 27,341,254 In this item, the Bank finances its customers’ purchases of assets, including real estate and other personal property, through financial lease agreements. As of December 31, 2018, Ch$758,970 million corresponds to financial leases for real estate (Ch$653,575 million in December 2017) and Ch$813,038 million corresponds to financial leases for other assets (Ch$727,941 million in December 2017). |
Schedule of change in gross carrying amount and ECL allowances | Commercial Mortgage Consumer Total MCh$ MCh$ MCh$ MCh$ Balance as of January 1, 2017 272,274 32,747 249,748 554,769 Charge-offs (58,716) (5,093) (254,981) (318,790) Sales or transfers of credits (11,595) ― ― (11,595) Allowances (released) established, net 19,266 4,361 247,810 271,437 Balance as of December 31, 2017 221,229 32,015 242,577 495,821 Impact adoption IFRS 9 181 1,762 71,874 73,817 Balance as of January 1, 2018 221,410 33,777 314,451 569,638 Charge-offs (52,419) (6,993) (233,511) (292,923) Sales or transfers of credits (958) ― ― (958) Allowances (released) established, net 60,831 7,546 241,244 309,621 Balance as of December 31, 2018 228,864 34,330 322,184 585,378 |
Schedule of cash flows to be received from financial leasing contracts | Total receivable Unearned income Net lease receivable (*) 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Due within one year 461,354 519,186 (54,216) (60,216) 407,138 458,970 Due after 1 year but within 2 years 338,305 383,164 (39,946) (44,066) 298,359 339,098 Due after 2 years but within 3 years 230,920 255,997 (26,136) (28,740) 204,784 227,257 Due after 3 years but within 4 years 146,921 162,310 (17,680) (19,471) 129,241 142,839 Due after 4 years but within 5 years 99,268 108,453 (12,564) (13,992) 86,704 94,461 Due after 5 years 278,607 336,705 (27,315) (33,666) 251,292 303,039 Total 1,555,375 1,765,815 (177,857) (200,151) 1,377,518 1,565,664 (*) The net balance receivable does not include the total overdue portfolio totaling Ch$3,998 million and Ch$6,344 million as of December 31, 2017 and 2018, respectively. This overdue portfolio only reflects the past due portion without considering the remaining outstanding principal and interest. |
Schedule of loans by industry sector | Location Chile Abroad Total 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ % MCh$ % Commercial loans: Commerce 2,013,411 2,285,895 21,718 38,430 2,035,129 7.99 2,324,325 8.32 Financial services 1,845,464 2,119,815 6,185 2,784 1,851,649 7.27 2,122,599 7.60 Services 1,964,238 2,109,143 — 348 1,964,238 7.72 2,109,491 7.55 Construction 1,493,373 1,752,237 — — 1,493,373 5.87 1,752,237 6.27 Agriculture and livestock 1,354,069 1,582,520 — — 1,354,069 5.32 1,582,520 5.67 Manufacturing 1,369,293 1,544,862 30,399 34,613 1,399,692 5.50 1,579,475 5.66 Transportation and telecommunications 1,612,930 1,480,773 — 17,369 1,612,930 6.34 1,498,142 5.37 Electricity, gas and water 565,695 461,351 — — 565,695 2.22 461,351 1.65 Mining 422,176 453,549 — — 422,176 1.66 453,549 1.62 Fishing 145,266 156,472 — — 145,266 0.57 156,472 0.56 Other 1,116,601 1,398,237 — — 1,116,601 4.39 1,398,237 5.01 Subtotal 13,902,516 15,344,854 58,302 93,544 13,960,818 54.85 15,438,398 55.28 Residential mortgage loans 7,477,236 8,052,073 — — 7,477,236 29.38 8,052,073 28.83 Consumer loans 4,013,459 4,436,161 — — 4,013,459 15.77 4,436,161 15.89 Total 25,393,211 27,833,088 58,302 93,544 25,451,513 100.00 27,926,632 100.00 |
Schedule of sale or transfer of loan portfolio | As of December 31, 2017 Carrying Allowances Effect on income amount released Sale price (loss) gain MCh$ MCh$ MCh$ MCh$ Sale of outstanding loans 33,681 (11,595) 24,126 2,040 Sale of write-off loans — — 23 23 Total 33,681 (11,595) 24,149 2,063 As of December 31, 2018 Carrying Allowances Effect on income amount released Sale price (loss) gain MCh$ MCh$ MCh$ MCh$ Sale of outstanding loans 22,567 (958) 21,876 267 Sale of write-off loans — — — — Total 22,567 (958) 21,876 267 |
Loans to customers | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Normal 9,426,420 3,049,264 2,039,954 447,225 — 6,702 — 14,969,565 13,494,128 Substandard — — 94,894 — — — — 94,894 101,253 Non-complying — — — 13,026 120,564 239,734 615 373,939 365,437 Subtotal 9,426,420 3,049,264 2,134,848 460,251 120,564 246,436 615 15,438,398 13,960,818 Mortgage loans Normal — 6,893,619 — 993,085 — 513 — 7,887,217 7,316,969 Non-complying — — — — — 164,856 — 164,856 160,267 Subtotal — 6,893,619 — 993,085 — 165,369 — 8,052,073 7,477,236 Consumer loans Normal — 3,166,290 — 975,898 — 24,579 — 4,166,767 3,760,472 Non-complying — — — — — 269,394 — 269,394 252,987 Subtotal — 3,166,290 — 975,898 — 293,973 — 4,436,161 4,013,459 Total 9,426,420 13,109,173 2,134,848 2,429,234 120,564 705,778 615 27,926,632 25,451,513 |
Schedule of change in gross carrying amount and ECL allowances | i. Changes in the gross carrying amount as of December 31, 2018 is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans Gross Carrying amount as at 1 January 2018 8,446,627 2,506,255 2,228,401 408,337 162,231 208,944 23 13,960,818 Net change on gross carrying amount * 968,288 780,778 (254,542) (105,114) (81,058) (4,607) 592 1,304,337 Transfer to Stage 1 681,223 375,672 (680,838) (346,936) (385) (28,736) — — Transfer to Stage 2 (811,209) (602,997) 822,133 630,963 (10,924) (27,966) — — Transfer to Stage 3 (15,175) (16,665) (32,569) (127,676) 47,744 144,341 — — Amounts written off (150) (67) (11) (468) (5,422) (46,301) — (52,419) Foreign Exchange adjustments 156,816 6,288 52,274 1,145 8,378 761 — 225,662 Total Commercial loans 9,426,420 3,049,264 2,134,848 460,251 120,564 246,436 615 15,438,398 Mortgage loans Gross Carrying amount as at 1 January 2018 — 6,410,939 — 904,826 — 161,471 — 7,477,236 Net change on gross carrying amount * — 734,990 — (115,034) — (38,126) — 581,830 Transfer to Stage 1 — 399,309 — (397,363) — (1,946) — — Transfer to Stage 2 — (651,619) — 671,775 — (20,156) — — Transfer to Stage 3 — — — (71,113) — 71,113 — — Amounts written off — — — (6) — (6,987) — (6,993) Foreign Exchange adjustments — — — — — — — — Total Mortgage loans — 6,893,619 — 993,085 — 165,369 — 8,052,073 Consumer loans Gross Carrying amount as at 1 January 2018 — 2,761,640 — 967,918 — 283,901 — 4,013,459 Net change on gross carrying amount * — 1,007,548 — (416,546) — 60,645 — 651,647 Transfer to Stage 1 — 381,126 — (335,330) — (45,796) — — Transfer to Stage 2 — (978,112) — 1,040,597 — (62,485) — — Transfer to Stage 3 — (9,340) — (281,144) — 290,484 — — Amounts written off — (104) — (627) — (232,780) — (233,511) Foreign Exchange adjustments — 3,532 — 1,030 — 4 — 4,566 Total Consumer loans — 3,166,290 — 975,898 — 293,973 — 4,436,161 * Net change between assets originated and assets repaid, excluding write offs. iii. 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group POCI Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Commercial loans ECL allowances as at 1 January 2018 16,527 16,663 31,252 20,247 50,014 86,701 6 221,410 Net change on ECL allowances * 9,424 12,463 (5,045) (18,338) (18,715) 31,406 293 11,488 Transfer to Stage 1 4,114 14,807 (3,981) (6,387) (133) (8,420) — — Transfer to Stage 2 (2,600) (11,606) 8,805 15,817 (6,205) (4,211) — — Transfer to Stage 3 (70) (1,189) (4,134) (13,572) 4,204 14,761 — — Impact on year end ECL of exposures transferred between stages during the year ** (2,702) (9,589) 4,512 23,822 5,505 21,568 — 43,116 Amounts written off (150) (67) (11) (468) (5,422) (46,301) — (52,419) Foreign exchange adjustments 337 112 945 46 3,446 383 — 5,269 Total Commercial loans 24,880 21,594 32,343 21,167 32,694 95,887 299 228,864 Mortgage loans ECL allowances as at 1 January 2018 — 740 — 17,351 — 15,686 — 33,777 Net change on ECL allowances * — 299 — (8,772) — 4,417 — (4,056) Transfer to Stage 1 — 892 — (758) — (134) — — Transfer to Stage 2 — (404) — 2,112 — (1,708) — — Transfer to Stage 3 — — — (2,693) — 2,693 — — Impact on year end ECL of exposures transferred between stages during the year ** — (803) — 9,661 — 2,744 — 11,602 Amounts written off — — — (6) — (6,987) — (6,993) Foreign exchange adjustments — — — — — — — — Total Mortgage loans — 724 — 16,895 — 16,711 — 34,330 Consumer loans ECL allowances as at 1 January 2018 — 44,078 — 115,096 — 155,277 — 314,451 Net change on ECL allowances * — 40,305 — (91,527) — 119,321 — 68,099 Transfer to Stage 1 — 26,682 — (9,604) — (17,078) — — Transfer to Stage 2 — (44,301) — 68,448 — (24,147) — — Transfer to Stage 3 — (2,024) — (72,629) — 74,653 — — Impact on year end ECL of exposures transferred between stages during the year ** — (15,379) — 101,086 — 87,371 — 173,078 Amounts written off — (104) — (627) — (232,780) — (233,511) Foreign exchange adjustments — 16 — 49 — 2 — 67 Total Consumer loans — 49,273 — 110,292 — 162,619 — 322,184 * Net allowances change between assets originated and assets repaid, excluding write offs. ** Represents the change in the year-end ECLs of exposures that were transferred from one stage to another during the year. |
Financial Assets Available-fo_2
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |
Schedule of financial assets | 2017 2018 MCh$ MCh$ Assets instruments Available-for Sale 1,526,315 — Debt instruments at fair value through OCI — 1,043,440 Equity instruments valued at fair value through OCI — 9,751 Total 1,526,315 1,053,191 |
Schedule of instruments classified as available-for-sale | 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Bonds issued by the Chilean Government and Central Bank 204,128 — Promissory notes issued by the Chilean Government and Central Bank 3,346 — Other instruments 148,894 — Other instruments issued in Chile: Equity instruments valued at fair value 9,218 — Mortgage bonds from domestic banks 99,572 — Bonds from domestic banks 5,415 — Deposits from domestic banks 956,733 — Bonds from other Chilean companies 14,969 — Other instruments 83,006 — Instruments issued by foreign institutions: Equity instruments valued at cost 50 — Other instruments issued abroad 984 — Total 1,526,315 — |
Schedule of breakdown of the balance under the heading "Debt instruments at fair value through OCI | 2017 2018 MCh$ MCh$ Instruments issued by the Chilean Government and Central Bank: Bonds issued by the Chilean Government and Central Bank — 135,145 Promissory notes issued by the Chilean Government and Central Bank — — Other instruments — 29,077 Other instruments issued in Chile: Mortgage bonds from domestic banks — 92,491 Bonds from domestic banks — 5,351 Deposits from domestic banks — 559,108 Bonds from other Chilean companies — 6,599 Other instruments — 107,125 Instruments issued by foreign institutions: Other instruments — 108,544 Total — 1,043,440 |
Schedule of breakdown of the balance under the heading "Equity instruments at fair value through OCI" | 2017 2018 MCh$ MCh$ Equity instruments issued in Chile — 8,939 Equity instruments issued by foreign institutions — 812 Total — 9,751 |
Schedule of credit ratings of the issuers of debt instruments | 2017 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total Total MCh$ MCh$ MCh$ MCh$ MCh$ Debt Instrument Investment grade 827,770 — — 827,770 1,433,057 Non-investment grade — — — — — Without rating 215,670 — — 215,670 83,006 Total 1,043,440 — — 1,043,440 1,516,063 |
Schedule of change in gross carrying amount and ECL allowances | Commercial Mortgage Consumer Total MCh$ MCh$ MCh$ MCh$ Balance as of January 1, 2017 272,274 32,747 249,748 554,769 Charge-offs (58,716) (5,093) (254,981) (318,790) Sales or transfers of credits (11,595) ― ― (11,595) Allowances (released) established, net 19,266 4,361 247,810 271,437 Balance as of December 31, 2017 221,229 32,015 242,577 495,821 Impact adoption IFRS 9 181 1,762 71,874 73,817 Balance as of January 1, 2018 221,410 33,777 314,451 569,638 Charge-offs (52,419) (6,993) (233,511) (292,923) Sales or transfers of credits (958) ― ― (958) Allowances (released) established, net 60,831 7,546 241,244 309,621 Balance as of December 31, 2018 228,864 34,330 322,184 585,378 |
Schedule of unrealised gain and loss on available for sale investments | 2016 2017 2018 MCh$ MCh$ MCh$ Net gain (loss) on financial assets before income tax (1) (52,345) 4,775 (13,878) Tax (expense) benefit 12,575 (1,299) 3,757 Net of tax amount (2) (39,770) 3,476 (10,121) (1) As of December 31, 2016, 2017 and 2018, realized gains reclassified to the income statement line item “Net financial operating income” amounted to Ch$64,011 million, Ch$5,149 million and Ch$400 million, respectively. This amount corresponds to the unrealized gain or loss, net of deferred tax and which are included in “Consolidated Statement of Changes in Equity”. |
Debt instruments valued at fair value | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |
Schedule of change in gross carrying amount and ECL allowances | (b.3) Analysis of changes in the fair value of debt instrument is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ Gross Carrying amount as at 1 January 2018 1,516,063 — — 1,516,063 Net change on gross carrying amount* (515,343) — — (515,343) Change in fair value 14,162 — — 14,162 Transfer to Stage 1 — — — — Transfer to Stage 2 — — — — Transfer to Stage 3 — — — — Amounts written off — — — — Foreign exchange adjustments 28,558 — — 28,558 Total 1,043,440 — — 1,043,440 * Net allowance change between assets originated and assets repaid, excluding write-offs. (b.4) Analysis of changes in the corresponding ECLs of debt instrument is, as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Individual Individual Total MCh$ MCh$ MCh$ MCh$ ECL allowances as at 1 January 2018 5,820 — — 5,820 Net change on ECL allowances * (1,978) — — (1,978) Transfer to Stage 1 — — — — Transfer to Stage 2 — — — — Transfer to Stage 3 — — — — Impact on year end ECL of exposures transferred between stages during the year ** — — — — Impact of net re-measurement of year end ECL 258 — — 258 Amounts written off — — — — Foreign exchange adjustments 168 — — 168 Total 4,268 — — 4,268 * Net allowance change between assets originated and assets repaid, excluding write-offs. ** Represents the change in the year-end ECLs of exposures that were transferred from one stage to another during the year. |
Investments in Other Companies
Investments in Other Companies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments in Other Companies | |
Schedule of investments in other companies | Investment Ownership Interest Equity Book Value Income (Loss) Company Shareholder 2017 2018 2017 2018 2017 2018 2017 2018 % % MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associates Transbank S.A. Banco de Chile 26.16 26.16 56,804 69,358 15,070 18,468 2,117 3,262 Sociedad Operadora de Tarjetas de Crédito Nexus S.A. Banco de Chile 25.81 25.81 13,781 16,805 3,822 4,557 884 735 Administrador Financiero del Transantiago S.A. Banco de Chile 20.00 20.00 15,490 17,978 3,098 3,680 317 582 Redbanc S.A. Banco de Chile 38.13 38.13 7,484 8,356 2,894 3,219 403 325 Centro de Compensación Automatizado S.A. Banco de Chile 33.33 33.33 4,696 5,592 1,589 1,894 236 305 Sociedad Imerc OTC S.A. Banco de Chile 12.33 12.33 11,490 11,952 1,417 1,474 66 56 Sociedad Interbancaria de Depósitos de Valores S.A. Banco de Chile 26.81 26.81 3,659 4,161 995 1,129 215 204 Soc. Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A. Banco de Chile 15.00 15.00 5,838 6,106 908 944 66 58 Subtotal 119,242 140,308 29,793 35,365 4,304 5,527 Joint Venture Servipag Ltda. Banco de Chile 50.00 50.00 9,997 11,398 4,999 5,699 700 701 Artikos Chile S.A. Banco de Chile 50.00 50.00 1,654 2,025 979 1,188 507 583 Subtotal 11,651 13,423 5,978 6,887 1,207 1,284 Total 130,893 153,731 35,771 42,252 5,511 6,811 |
Schedule of total carrying amount of the Bank's associates | 2017 Soc. Operadora de la Centro de Cámara de Soc. Operadora Sociedad Compensación Compensación de de Tarjetas de Interbancaria de Administrador Sociedad Automatizado Pagos de Alto Valor Crédito Nexus Depósitos de Redbanc Transbank Financiero del Imerc S.A. S.A. S.A. Valores S.A. S.A. S.A. Transantiago S.A. OTC S.A. Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associate’s statement of financial position Current assets 2,351 5,114 11,114 51 6,371 744,681 50,474 11,270 831,426 Non-current assets 4,520 1,224 21,555 3,669 14,864 76,097 830 6,643 129,402 Total Assets 6,871 6,338 32,669 3,720 21,235 820,778 51,304 17,913 960,828 Current liabilities 1,826 500 13,735 61 8,702 763,236 34,896 3,302 826,258 Non-current liabilities 349 — 5,153 — 5,049 738 918 3,112 15,319 Total Liabilities 2,175 500 18,888 61 13,751 763,974 35,814 6,414 841,577 Equity 4,696 5,838 13,781 3,659 7,484 56,804 15,490 11,490 119,242 Minority interest — — — — — — — 9 9 Total Liabilities and Equity 6,871 6,338 32,669 3,720 21,235 820,778 51,304 17,913 960,828 Associate’s revenue and profit Operating income 2,275 3,086 49,403 9 34,083 175,975 3,358 6,315 274,504 Operating expenses (1,359) (2,666) (44,664) (33) (32,334) (167,052) (1,998) (5,281) (255,387) Other income (expenses) — 141 (187) 826 (339) 1,625 649 88 2,803 Income (loss) before taxes 916 561 4,552 802 1,410 10,548 2,009 1,122 21,920 Income tax (208) (122) (1,125) — (354) (2,453) (426) (586) (5,274) Net income for the year 708 439 3,427 802 1,056 8,095 1,583 536 16,646 2018 Soc. Operadora de la Centro de Cámara de Soc. Operadora Sociedad Compensación Compensación de de Tarjetas de Interbancaria de Administrador Sociedad Automatizado Pagos de Alto Valor Crédito Nexus Depósitos de Redbanc Transbank Financiero del Imerc S.A. S.A. S.A. Valores S.A. S.A. S.A. Transantiago S.A. OTC S.A. Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Associate’s statement of financial position Current assets 3,088 5,871 12,918 153 6,084 812,285 55,402 18,842 914,643 Non-current assets 3,985 857 22,221 4,239 14,741 92,273 416 6,431 145,163 Total Assets 7,073 6,728 35,139 4,392 20,825 904,558 55,818 25,273 1,059,806 Current liabilities 1,321 622 14,179 231 9,907 833,788 36,676 10,111 906,835 Non-current liabilities 160 — 4,155 — 2,562 1,412 1,164 3,201 12,654 Total Liabilities 1,481 622 18,334 231 12,469 835,200 37,840 13,312 919,489 Equity 5,592 6,106 16,805 4,161 8,356 69,358 17,978 11,952 140,308 Minority interest — — — — — — — 9 9 Total Liabilities and Equity 7,073 6,728 35,139 4,392 20,825 904,558 55,818 25,273 1,059,806 Operating income 3,214 3,302 50,319 1 35,314 191,568 3,435 6,254 293,407 Operating expenses (2,005) (3,016) (46,426) (35) (33,895) (177,440) (2,615) (5,567) (270,999) Other income (expenses) (25) 177 (173) 796 (260) 2,380 2,982 59 5,936 Gain before tax 1,184 463 3,720 762 1,159 16,508 3,802 746 28,344 Income tax (268) (79) (870) — (308) (4,038) (894) (292) (6,749) Gain for the year 916 384 2,850 762 851 12,470 2,908 454 21,595 |
Schedule of financial information of entities controls jointly | Artikos Chile S.A. Servipag Ltda. 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ Current assets 1,231 1,397 56,188 59,142 Non-current assets 1,246 1,503 16,669 15,371 Total Assets 2,477 2,900 72,857 74,513 Current liabilities 823 875 56,397 57,847 Non-current liabilities — — 6,463 5,268 Total Liabilities 823 875 62,860 63,115 Equity 1,654 2,025 9,997 11,398 Total Liabilities and Equity 2,477 2,900 72,857 74,513 Operating income 3,194 3,544 40,580 42,679 Operating expenses (2,352) (2,519) (38,401) (40,318) Other income (expenses) 17 12 (473) (339) Profit before tax 859 1,037 1,706 2,022 Income tax 154 130 (305) (621) Profit for the year 1,013 1,167 1,401 1,401 |
Schedule of reconciliation of investments in other companies that are not consolidated | 2016 2017 2018 MCh$ MCh$ MCh$ Balance as of January 1, 25,849 30,314 35,771 Capital increase 1,129 — — Participation in net income 4,019 5,511 6,811 Dividends received (667) (484) (411) Other (16) 430 81 Balance as of December 31, 30,314 35,771 42,252 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
Schedule of changes in intangible assets | Intangible assets arising Software or from business computer Goodwill (1) combinations (2) programs Total MCh$ MCh$ MCh$ MCh$ Gross Balance Balance as of January 1, 2016 16,714 56,249 100,000 172,963 Acquisitions — — 11,248 11,248 Disposals — — (1,757) (1,757) Balance as of December 31, 2016 16,714 56,249 109,491 182,454 Acquisitions — — 18,779 18,779 Disposals — — (5,790) (5,790) Balance as of December 31, 2017 16,714 56,249 122,480 195,443 Acquisitions — — 23,512 23,512 Disposals — — (1,024) (1,024) Balance as of December 31, 2018 16,714 56,249 144,968 217,931 Accumulated Amortization Balance as of January 1, 2016 — (34,982) (73,281) (108,263) Amortization for the year — (2,286) (8,595) (10,881) Disposals — ― 1,726 1,726 Balance as of December 31, 2016 — (37,268) (80,150) (117,418) Amortization for the year — (2,285) (9,075) (11,360) Disposals — ― 5,790 5,790 Balance as of December 31, 2017 — (39,553) (83,435) (122,988) Amortization for the year — — (10,496) (10,496) Disposals — — 1,024 1,024 Balance as of December 31, 2018 — (39,553) (92,907) (132,460) Net balance as of December 31, 2016 16,714 18,981 29,341 65,036 Net balance as of December 31, 2017 16,714 16,696 39,045 72,455 Net balance as of December 31, 2018 16,714 16,696 52,061 85,471 (1) Goodwill corresponds mainly to business combination with Citibank Chile whose amount is of MCh$12,576 that represents the value of synergies to be generated in the combination process and the acquisition of know-how. (2) Intangible assets arising from business combinations include assets with indefinite useful lives acquired in the business combination with Citibank Chile. |
Summary of commitments for technological developments | Amount of Commitment 2017 2018 MCh$ MCh$ Software and licenses 5,129 11,806 |
Summary of goodwill allocated to individual business segments | 2017 2018 Business Segments MCh$ MCh$ Retail 5,928 5,928 Wholesale 2,135 2,135 Treasury and money market operations 4,513 4,513 Subsidiaries 4,138 4,138 Total 16,714 16,714 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment | |
Schedule of changes in property and equipment | Land and Buildings Equipment Other Total MCh$ MCh$ MCh$ MCh$ (a.1) Cost Balance as of January 1, 2017 302,187 180,322 50,404 532,913 Additions 10,606 8,898 3,720 23,224 Disposals/write-downs/sales (1,365) (4,851) (1,569) (7,785) Accumulated depreciation (see (a.2)) (142,768) (148,006) (41,316) (332,090) Impairment loss (*) (***) — — (3) (3) Balance as of December 31, 2017 168,660 36,363 11,236 216,259 Balance as of January 1, 2018 311,428 184,369 52,552 548,349 Additions 12,589 12,702 2,774 28,065 Disposals/write-downs/sales (3,145) (13,845) (1,785) (18,775) Accumulated depreciation (see (a.2)) (150,099) (148,455) (42,879) (341,433) Impairment loss (*) (287) (6) (41) (334) Balance as of December 31, 2018 170,486 34,765 10,621 215,872 (a.2) Accumulated Depreciation Balance as of January 1, 2017 (134,900) (139,277) (39,654) (313,831) Depreciation charges of the year (*) (**) (9,040) (13,723) (3,045) (25,808) Sales and disposals of the year 1,172 4,851 1,526 7,549 Transfers ― 143 (143) ― Accumulated Depreciation as of December 31, 2017 (142,768) (148,006) (41,316) (332,090) Depreciation charges of the year (*) (**) (9,193) (14,291) (3,333) (26,817) Sales and disposals of the year 1,862 13,842 1,770 17,474 Accumulated Depreciation as of December 31, 2018 (150,099) (148,455) (42,879) (341,433) (*) See Note No. 37 about Depreciation, Amortization and Impairment (**) It does not include depreciation for the year for Investment Properties, which it registered under the item “Investment Properties” for an amount of Ch$368 million (Ch$368 million in 2017) (***) It does not include charge-off provisions for Property and Equipment for an amount of Ch$163 million in 2017. |
Schedule of future payments of operating leases | Lease Contracts Over 1 Over 1 Over 3 month Over 3 months year years Expenses Up to and up and up and up and up for the 1 to 3 up to 12 to 3 to 5 Over 5 year month months months years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Year 2017 33,017 2,764 5,522 23,462 45,891 33,789 34,401 145,829 Year 2018 34,773 2,929 5,828 23,578 46,143 28,730 26,697 133,905 |
Investment Properties (Tables)
Investment Properties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investment Properties | |
Schedule of investment properties | 2016 2017 2018 MCh$ MCh$ MCh$ Net Balance as of January 1, 15,042 14,674 14,306 Additions resulting from business combinations — — — Reclassifications — — — Disposals — — — Depreciation charges in the period (368) (368) (368) Impairment — — — Net Balance as of December 31, 14,674 14,306 13,938 |
Current Taxes and Deferred Ta_2
Current Taxes and Deferred Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Current Taxes and Deferred Taxes | |
Schedule of total tax receivable | 2017 2018 MCh$ MCh$ Income taxes 108,844 150,798 Less: Monthly prepaid taxes (PPM) (123,717) (126,917) Credit for training expenses (2,036) (2,224) Other (2,670) (1,410) Total tax (receivable) payable, net (19,579) 20,247 2017 2018 MCh$ MCh$ Current tax assets 23,032 677 Current tax liabilities (3,453) (20,924) Total tax receivable (payable), net 19,579 (20,247) |
Schedule of income tax expenses | 2016 2017 2018 MCh$ MCh$ MCh$ Income tax expense: Current year taxes 134,759 105,024 159,153 Tax from previous period 1,030 (1,401) 2,574 Subtotal 135,789 103,623 161,727 (Credit) charge for deferred taxes: Origin and reversal of temporary differences (26,044) 20,043 (4,582) Effect of changes in tax rate (9,158) (5,729) ― Subtotal (35,202) 14,314 (4,582) Other (375) (2,576) 2,623 Net charge to income for income taxes 100,212 115,361 159,768 Tax Rate 24.00 % 25.50 % 27.00 % |
Schedule of reconciliation of effective tax rate | 2016 2017 2018 Tax rate Tax rate Tax rate % MCh$ % MCh$ % MCh$ Income tax calculated on net income before tax 24.00 162,063 25.50 175,298 27.00 206,116 Subordinated Debt Payment (*) (5.05) (34,092) (5.67) (38,997) (3.21) (24,515) Additions or deductions (**) (3.90) (26,332) (2.88) (19,794) (4.18) (31,894) Tax from previous years 0.15 1,030 (0.20) (1,401) 0.34 2,574 Effect of changes in tax rate (1.36) (9,158) (0.83) (5,729) — — Other 1.00 6,701 0.87 5,984 0.98 7,487 Effective rate and income tax expense 14.84 100,212 16.79 115,361 20.93 159,768 (*) The tax expense related to the subordinated debt held by SAOS S.A, it ended during the current fiscal year, as a result of the generation of sufficient resources to pay off the total debt. (**) The deductions of the tax rate for 2016, 2017 and 2018 mainly relate to permanent differences between tax and financial accounting rules. |
Schedule of increasing first category tax rates | Year Rate 2014 21.0 % 2015 22.5 % 2016 24.0 % 2017 25.5 % 2018 27.0 % |
Schedule of effect of deferred taxes on income and equity | Balance as of Effect Balance as of Balance as of Effect Balance as of January 1, December 31, January 1, December 31, 2017 Income Equity 2017 2018 Income Equity 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Debit differences: Allowances for loan losses 127,719 (12,276) — 115,443 138,643 3,232 — 141,875 Personnel provisions 11,231 1,290 — 12,521 12,521 756 — 13,277 Staff vacations 6,674 234 — 6,908 6,908 333 — 7,241 Accrued interest and indexation adjustments from past due loans 3,355 59 — 3,414 3,414 (182) — 3,232 Staff severance indemnities provision 1,854 (352) (45) 1,457 1,457 (8) 35 1,484 Provisions of credit card expenses 12,459 (3,504) — 8,955 8,955 858 — 9,813 Provisions of accrued expenses 14,489 1,869 — 16,358 16,358 (3,203) — 13,155 Derivative instruments adjustments — — — — — 1,356 — 1,356 Adjustment for valuation and impairment of financial assets at fair value through OCI — — — — — (419) 1,365 946 Leasing 37,119 (4,570) — 32,549 32,549 10,439 — 42,988 Other adjustments 5,664 581 1 6,246 6,246 (5,233) 1 1,014 Total debit differences 220,564 (16,669) (44) 203,851 227,051 7,929 1,401 236,381 Credit differences: Depreciation of property and equipment and investment properties 11,815 2,466 — 14,281 14,281 709 — 14,990 Adjustment for valuation and impairment of financial assets at fair value through OCI 1,092 1 1,299 2,392 2,392 — (2,392) — Transitory assets 4,772 714 — 5,486 5,486 28 — 5,514 Derivative instruments adjustments 7,707 (3,329) — 4,378 4,378 (4,378) — — Accrued interest to effective rate 2,247 (644) — 1,603 1,603 (39) — 1,564 Advance payment of lump-sum under union contracts — — — — — 6,699 — 6,699 Intangible assets amortization 6,090 (587) — 5,503 5,503 — — 5,503 Other adjustments 9,918 (976) 1 8,943 8,943 328 — 9,271 Total credit differences 43,641 (2,355) 1,300 42,586 42,586 3,347 (2,392) 43,541 Total Assets (Liabilities), net 176,923 (14,314) (1,344) 161,265 184,465 4,582 3,793 192,840 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets | |
Schedule of other assets | 2017 2018 MCh$ MCh$ Deposit by derivatives margin 174,254 336,548 Assets held for leasing (*) 127,979 101,848 Recoverable income taxes 20,437 44,665 Prepaid expenses 12,180 37,394 Other accounts and notes receivable 99,201 29,080 Documents intermediated (**) 32,593 28,478 Assets received or awarded as payment (***): Assets received in lieu of payment 19,905 24,871 Provisions for assets received in lieu of payment (1,532) (1,915) Commissions receivable 6,387 12,155 Accounts receivable for sale of assets received in lieu of payment 3,353 4,816 Rental guarantees 1,849 1,895 VAT receivable — 1,302 Recovered leased assets for sale 3,053 1,064 Mutual funds (****) 78,069 ― Other 27,072 29,490 Total 604,800 651,691 (*) These correspond to property and equipment to be given under a financial lease. (**) Documents intermediated refers to securities lending agreements managed by the Bank’s subsidiary Banchile Corredores de Bolsa S.A. (***) Assets received in lieu of payment are valued at fair value, which is calculated considering the lesser between appraised value and value of award, less cost of sell. (****) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). |
Current Accounts and Other De_2
Current Accounts and Other Demand Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Current Accounts and Other Demand Deposits | |
Schedule of current accounts and other demand deposits | 2017 2018 MCh$ MCh$ Current accounts 7,200,050 7,725,465 Other demand deposits 1,081,223 1,143,414 Other deposits and accounts 634,433 715,609 Total 8,915,706 9,584,488 |
Saving Accounts and Time Depo_2
Saving Accounts and Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Saving Accounts and Time Deposits | |
Schedule of saving accounts and time deposits | 2017 2018 MCh$ MCh$ Time deposits 9,743,968 10,343,922 Term savings accounts 214,120 224,303 Other term balances payable 109,690 87,949 Total 10,067,778 10,656,174 |
Borrowings from Financial Ins_2
Borrowings from Financial Institutions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings from Financial Institutions | |
Schedule of borrowings from financial institutions | 2017 2018 MCh$ MCh$ Domestic banks Interbank loans 1,100 7,001 Current account overdrafts — 374 Subtotal 1,100 7,375 Foreign banks Foreign trade financing Chilean export financing 1,064,435 1,354,943 Chilean import financing 23,064 31,523 Obligations for transactions between other countries — — Borrowings and other obligations Current account overdrafts 13,745 18,283 Borrowings obtained at long-term 92,683 104,635 Subtotal 1,193,927 1,509,384 Chilean Central Bank Debt reprogramming credit lines 1 — Subtotal 1 — Total 1,195,028 1,516,759 |
Debt Issued (Tables)
Debt Issued (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt issued | |
Schedule of debt securities issued | 2017 2018 MCh$ MCh$ Mortgage bonds 23,424 16,368 Bonds 5,769,334 6,772,990 Subordinated bonds 696,217 686,194 Total 6,488,975 7,475,552 |
Bonds | |
Debt issued | |
Schedule of debt securities issued | Amount Terms Annual issue Series Currency MCh$ Years rate % Issue date Maturity date BCHIEA0617 UF 106,001 6 1.60 03/01/2018 03/01/2024 BCHIBN1015 UF 114,212 12 2.90 24/01/2018 24/01/2030 BCHIEF1117 UF 79,612 8 1.80 09/02/2018 09/02/2026 BCHIEP0717 UF 104,550 11 2.00 13/02/2018 13/02/2029 BCHIBT1215 UF 57,936 14 3.00 13/03/2018 13/03/2032 BCHIBW1215 UF 59,081 14 2.20 14/08/2018 14/08/2032 BCHIDY0917 UF 55,619 5 1.24 16/08/2018 16/08/2023 BCHIEN1117 UF 109,543 10 2.08 25/09/2018 25/09/2028 BCHIDX0817 UF 109,311 5 1.70 22/10/2018 22/10/2023 BCHIDY0917 UF 12,025 5 1.74 22/10/2018 22/10/2023 BCHIDY0917 UF 15,299 5 1.75 22/10/2018 22/10/2023 BCHIBY1215 UF 59,374 15 2.29 24/10/2018 24/10/2033 BCHIBX0815 UF 58,998 15 2.29 24/10/2018 24/10/2033 BCHIBZ0815 UF 59,987 15 2.23 07/12/2018 07/12/2033 BCHIEJ0717 UF 82,878 9 1.99 12/12/2018 12/12/2027 Subtotal UF 1,084,426 BCHIDH0916 CLP 20,370 4 3.80 11/06/2018 11/06/2022 BONO USD USD 32,842 10 4.26 28/09/2018 28/09/2028 BONO CHF CHF 79,229 5 0.57 26/10/2018 26/10/2023 Subtotal other currencies 132,441 Total as of December 31, 2018 1,216,867 Annual Amount Terms issue rate Series Currency MCh$ Years % Issue date Maturity date BCHIBQ0915 UF 58,643 13 3.00 20/01/2017 20/01/2030 BCHIBH0915 UF 56,338 9 2.70 01/02/2017 01/02/2026 BCHIBP1215 UF 58,157 13 3.00 06/03/2017 06/03/2030 BCHIBC1215 UF 30,544 6 2.50 06/03/2017 06/03/2023 BCHIBC1215 UF 5,554 6 2.50 07/03/2017 07/03/2023 BCHIBC1215 UF 19,600 6 2.50 12/04/2017 12/04/2023 BCHIBG1115 UF 85,115 9 2.70 09/05/2017 09/05/2026 BCHIBE1115 UF 55,097 7 2.70 16/10/2017 16/10/2024 BCHIBR1215 UF 57,350 13 3.00 17/11/2017 17/11/2030 Subtotal UF 426,398 BONO EUR EUR 36,782 15 1.71 26/04/2017 26/04/2032 BONO JPY JPY 55,506 20 1.02 17/10/2017 17/10/2037 BONO USD USD 71,366 20 2.49 20/12/2017 20/12/2037 Subtotal other currencies 163,654 Total as of December 31, 2017 590,052 |
Commercial paper | |
Debt issued | |
Schedule of debt securities issued | Annual interest Rate Counterparty Currency Amount MCh$ % Issued date Maturity date Wells Fargo Bank USD 2,998 1.85 06/02/2018 08/05/2018 Wells Fargo Bank USD 2,998 1.93 06/02/2018 08/06/2018 Wells Fargo Bank USD 2,998 1.98 06/02/2018 09/07/2018 Wells Fargo Bank USD 2,998 2.05 06/02/2018 06/08/2018 Wells Fargo Bank USD 2,998 2.05 06/02/2018 08/08/2018 Wells Fargo Bank USD 29,716 2.25 28/02/2018 28/06/2018 Wells Fargo Bank USD 1,723 2.40 28/02/2018 29/08/2018 Citibank N.A. USD 6,894 2.60 28/02/2018 25/02/2019 Wells Fargo Bank USD 13,780 2.30 02/03/2018 02/07/2018 Wells Fargo Bank USD 4,489 2.30 05/03/2018 06/07/2018 Citibank N.A. USD 18,080 2.22 07/03/2018 05/06/2018 Wells Fargo Bank USD 1,747 2.25 13/03/2018 11/06/2018 Wells Fargo Bank USD 3,006 2.45 14/03/2018 11/09/2018 Wells Fargo Bank USD 606 2.60 15/03/2018 14/12/2018 Wells Fargo Bank USD 605 2.60 29/03/2018 28/09/2018 Wells Fargo Bank USD 60,343 2.60 05/04/2018 04/09/2018 Wells Fargo Bank USD 30,254 2.50 06/04/2018 01/08/2018 Wells Fargo Bank USD 1,743 2.40 10/04/2018 09/08/2018 Wells Fargo Bank USD 8,918 2.75 13/04/2018 12/04/2019 Wells Fargo Bank USD 8,946 2.75 17/04/2018 16/04/2019 Citibank N.A. USD 19,046 2.36 08/05/2018 08/08/2018 Citibank N.A. USD 31,665 2.38 09/05/2018 07/08/2018 Citibank N.A. USD 1,873 2.37 10/05/2018 08/08/2018 Citibank N.A. USD 12,250 2.36 14/05/2018 15/08/2018 Wells Fargo Bank USD 18,968 2.70 11/06/2018 01/04/2019 Wells Fargo Bank USD 28,973 2.42 13/06/2018 24/07/2018 Wells Fargo Bank USD 15,991 2.45 19/06/2018 20/09/2018 Citibank N.A. USD 12,778 2.41 20/06/2018 20/09/2018 Citibank N.A. USD 31,944 2.45 20/06/2018 03/10/2018 Wells Fargo Bank USD 3,194 2.65 20/06/2018 13/02/2019 Citibank N.A. USD 3,885 2.50 22/06/2018 23/11/2018 Wells Fargo Bank USD 19,495 2.20 28/06/2018 27/07/2018 Wells Fargo Bank USD 4,875 2.30 03/07/2018 11/09/2018 Wells Fargo Bank USD 29,556 2.30 06/07/2018 10/09/2018 Wells Fargo Bank USD 62,079 2.45 17/07/2018 17/10/2018 Wells Fargo Bank USD 32,729 2.45 24/07/2018 22/10/2018 Wells Fargo Bank USD 19,283 2.45 27/07/2018 29/10/2018 Wells Fargo Bank USD 31,919 2.50 30/07/2018 29/11/2018 Wells Fargo Bank USD 16,039 2.52 01/08/2018 06/12/2018 Citibank N.A. USD 25,787 2.50 02/08/2018 06/12/2018 Wells Fargo Bank USD 10,859 2.47 07/08/2018 14/12/2018 Wells Fargo Bank USD 3,238 2.46 09/08/2018 14/12/2018 Wells Fargo Bank USD 17,070 2.53 31/08/2018 28/12/2018 Wells Fargo Bank USD 6,929 2.58 04/09/2018 06/02/2019 Citibank N.A. USD 34,646 2.57 04/09/2018 04/01/2019 Citibank N.A. USD 4,902 2.24 07/09/2018 09/10/2018 Citibank N.A. USD 34,525 2.25 07/09/2018 09/10/2018 Citibank N.A. USD 1,742 2.23 10/09/2018 09/10/2018 Wells Fargo Bank USD 3,484 2.65 10/09/2018 11/03/2019 Wells Fargo Bank USD 6,026 2.45 11/09/2018 06/12/2018 Bofa Merrill Lynch USD 18,421 2.62 14/09/2018 01/03/2019 Wells Fargo Bank USD 33,464 2.48 20/09/2018 20/12/2018 Wells Fargo Bank USD 1,322 2.70 03/10/2018 05/04/2019 Wells Fargo Bank USD 13,591 2.78 12/10/2018 25/04/2019 Wells Fargo Bank USD 6,694 2.55 16/10/2018 16/01/2019 Citibank N.A. USD 6,713 2.50 17/10/2018 04/01/2019 Citibank N.A. USD 34,208 2.65 23/10/2018 22/01/2019 Citibank N.A. USD 20,483 2.84 11/12/2018 11/03/2019 Wells Fargo Bank USD 2,236 2.90 12/12/2018 12/04/2019 Wells Fargo Bank USD 34,555 2.67 20/12/2018 19/02/2019 Wells Fargo Bank USD 10,466 2.97 27/12/2018 02/05/2019 Wells Fargo Bank USD 6,977 2.97 27/12/2018 29/04/2019 Total as of December 31, 2018 940,720 Annual interest Counterparty Currency Amount MCh$ rate % Issued date Maturity date Citibank N.A. USD 13,223 1.37 05/01/2017 05/06/2017 Wells Fargo Bank USD 16,702 1.50 06/01/2017 03/07/2017 Wells Fargo Bank USD 6,681 1.48 06/01/2017 05/07/2017 Wells Fargo Bank USD 3,340 1.38 06/01/2017 05/06/2017 Wells Fargo Bank USD 3,340 1.27 06/01/2017 08/05/2017 Wells Fargo Bank USD 3,340 1.17 06/01/2017 06/04/2017 Wells Fargo Bank USD 24,906 1.20 09/01/2017 10/04/2017 Wells Fargo Bank USD 671 1.47 09/01/2017 10/07/2017 Citibank N.A. USD 2,685 1.47 09/01/2017 28/07/2017 Citibank N.A. USD 67,131 1.27 09/01/2017 12/05/2017 Wells Fargo Bank USD 20,105 1.36 10/01/2017 09/06/2017 Bofa Merrill Lynch USD 16,754 1.35 10/01/2017 09/06/2017 Wells Fargo Bank USD 1,318 1.23 13/01/2017 12/05/2017 Wells Fargo Bank USD 3,295 1.43 13/01/2017 12/07/2017 Bofa Merrill Lynch USD 3,884 1.70 07/02/2017 06/02/2018 Bofa Merrill Lynch USD 4,531 1.70 07/02/2017 06/02/2018 Bofa Merrill Lynch USD 11,017 1.70 08/02/2017 07/02/2018 Wells Fargo Bank USD 12,797 1.40 10/02/2017 01/09/2017 Wells Fargo Bank USD 19,196 1.40 10/02/2017 11/09/2017 Wells Fargo Bank USD 19,284 1.70 13/02/2017 12/02/2018 Wells Fargo Bank USD 1,607 1.32 13/02/2017 14/08/2017 Citibank N.A. USD 10,992 1.04 15/02/2017 15/05/2017 Citibank N.A. USD 15,977 1.34 15/02/2017 15/08/2017 Citibank N.A. USD 4,474 1.34 15/02/2017 15/08/2017 Citibank N.A. USD 4,471 1.35 16/02/2017 08/09/2017 Wells Fargo Bank USD 9,885 1.40 21/03/2017 29/09/2017 Bofa Merrill Lynch USD 33,024 1.16 24/03/2017 23/06/2017 Bofa Merrill Lynch USD 26,419 1.16 24/03/2017 23/06/2017 Bofa Merrill Lynch USD 33,165 1.42 30/03/2017 27/09/2017 Wells Fargo Bank USD 16,651 1.30 10/04/2017 08/08/2017 Wells Fargo Bank USD 13,351 1.45 11/04/2017 10/10/2017 Citibank N.A. USD 33,061 1.30 12/06/2017 12/09/2017 Wells Fargo Bank USD 2,645 1.48 12/06/2017 11/12/2017 Bofa Merrill Lynch USD 7,972 1.30 16/06/2017 15/09/2017 Wells Fargo Bank USD 6,643 1.75 16/06/2017 15/06/2018 Wells Fargo Bank USD 6,786 1.81 21/06/2017 20/06/2018 Citibank N.A. USD 10,418 1.48 23/06/2017 19/12/2017 Citibank N.A. USD 5,960 1.46 27/06/2017 19/12/2017 Citibank N.A. USD 26,487 1.35 27/06/2017 23/10/2017 JPMorgan Chase USD 33,322 1.48 11/07/2017 08/11/2017 Citibank N.A. USD 32,871 1.52 14/07/2017 12/01/2018 Wells Fargo Bank USD 16,284 1.55 31/07/2017 31/01/2018 Wells Fargo Bank USD 3,257 1.55 31/07/2017 31/01/2018 Wells Fargo Bank USD 6,513 1.42 31/07/2017 31/10/2017 Wells Fargo Bank USD 6,513 1.42 31/07/2017 31/10/2017 Wells Fargo Bank USD 10,952 1.52 14/08/2017 09/02/2018 Wells Fargo Bank USD 12,852 1.52 21/08/2017 16/02/2018 Wells Fargo Bank USD 19,047 1.47 25/08/2017 22/12/2017 Wells Fargo Bank USD 18,708 1.63 13/10/2017 11/04/2018 Wells Fargo Bank USD 12,472 1.63 13/10/2017 09/04/2018 Wells Fargo Bank USD 24,944 1.77 13/10/2017 10/07/2018 Wells Fargo Bank USD 6,236 1.91 13/10/2017 12/10/2018 Bofa Merrill Lynch USD 12,472 1.63 13/10/2017 12/04/2018 JPMorgan Chase USD 8,215 1.83 14/11/2017 13/08/2018 Wells Fargo Bank USD 15,883 1.65 21/11/2017 21/03/2018 Wells Fargo Bank USD 42,624 1.75 07/12/2017 05/03/2018 Wells Fargo Bank USD 1,596 2.25 14/12/2017 13/12/2018 Total as of December 31, 2017 808,949 |
Other Financial Obligations (Ta
Other Financial Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Financial Obligations | |
Schedule of other financial obligations | 2017 2018 MCh$ MCh$ Other Chilean obligations 104,665 95,912 Public sector obligations 32,498 22,102 Total 137,163 118,014 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of contingent liabilities [line items] | |
Schedule of provisions | 2017 2018 MCh$ MCh$ Provision for minimum dividends 172,804 178,462 Provisions for contingent loan risks (*) — 25,016 Provisions for other contingencies 21,733 468 Total 194,537 203,946 (*) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). |
Schedule of changes in provision | Minimum Contingent dividends loan risks Other Total MCh$ MCh$ MCh$ MCh$ Balances as of January 1, 2017 165,675 — 21,893 187,568 Provisions established 172,804 — — 172,804 Provisions used (165,675) — — (165,675) Provisions released — — (160) (160) Balances as of December 31, 2017 172,804 — 21,733 194,537 Balances as of January 1, 2018 172,804 22,975 21,733 217,512 Provisions established 178,462 2,041 3 180,506 Provisions used (172,804) ― (19,347) (192,151) Provisions released ― ― (1,921) (1,921) Balances as of December 31, 2018 178,462 25,016 468 203,946 |
Schedule of impairment of losses on contingent loan risks | 2017 (*) 2018 MCh$ MCh$ Foreign office guarantees and standby letters of credit ― 428 Confirmed foreign letters of credit ― 29 Issued foreign letters of credit ― 93 Performance guarantees ― 4,080 Undrawn credit lines ― 20,386 Total ― 25,016 (*) |
Schedule of change in gross carrying amount and ECL allowances | Commercial Mortgage Consumer Total MCh$ MCh$ MCh$ MCh$ Balance as of January 1, 2017 272,274 32,747 249,748 554,769 Charge-offs (58,716) (5,093) (254,981) (318,790) Sales or transfers of credits (11,595) ― ― (11,595) Allowances (released) established, net 19,266 4,361 247,810 271,437 Balance as of December 31, 2017 221,229 32,015 242,577 495,821 Impact adoption IFRS 9 181 1,762 71,874 73,817 Balance as of January 1, 2018 221,410 33,777 314,451 569,638 Charge-offs (52,419) (6,993) (233,511) (292,923) Sales or transfers of credits (958) ― ― (958) Allowances (released) established, net 60,831 7,546 241,244 309,621 Balance as of December 31, 2018 228,864 34,330 322,184 585,378 |
Foreign office guarantees and standby letters of credit | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 332,965 138 8,226 — — — 341,329 283,329 Substandard — — 347 — — — 347 1,706 Non-complying — — — — — — — Total 332,965 138 8,573 — — — 341,676 285,035 |
Schedule of change in gross carrying amount and ECL allowances | An analysis of changes in the outstanding exposures on foreign office guarantees and standby letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 274,563 84 10,388 — — — 285,035 Net change on exposures 33,660 24 (4,139) — 132 — 29,677 Transfer to Stage 1 4,994 — (4,855) — (139) — — Transfer to Stage 2 (6,513) — 6,513 — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 26,261 30 666 — 7 — 26,964 Total 332,965 138 8,573 — — — 341,676 An analysis of changes in ECL exposures on foreign office guarantees and standby letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 256 — — — — — 256 Net change on exposures 152 (1) — — 57 — 208 Transfer to Stage 1 60 — — — (60) — — Transfer to Stage 2 (14) — 14 — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year (56) — (14) — — — (70) Foreign exchange adjustments 30 1 — — 3 — 34 Total 428 — — — — — 428 |
Confirmed foreign letters of credit | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 56,764 — — — — — 56,764 64,970 Substandard — — — — — — — — Non-complying — — — — — — — — Total 56,764 — — — — — 56,764 64,970 |
Schedule of change in gross carrying amount and ECL allowances | An analysis of changes in the outstanding exposures on confirmed foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 64,970 — — — — — 64,970 Net change on exposures (15,455) — 8 — — — (15,447) Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 7,249 — (8) — — — 7,241 Total 56,764 — — — — — 56,764 An analysis of changes in ECL exposures on confirmed foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 23 — — — — — 23 Net change on exposures 3 — — — — — 3 Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year — — — — — — — Foreign exchange adjustments 3 — — — — — 3 Total 29 — — — — — 29 |
Issued foreign letters of credit | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 344,874 1,585 41,823 114 — — 388,396 94,313 Substandard — — — — — — — — Non-complying — — — — — — — — Total 344,874 1,585 41,823 114 — — 388,396 94,313 |
Schedule of change in gross carrying amount and ECL allowances | 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 80,106 1,737 11,984 486 — — 94,313 Net change on exposures 262,824 832 21,226 (1,498) — — 283,384 Transfer to Stage 1 6,268 — (6,268) — — — — Transfer to Stage 2 (13,420) (1,098) 13,420 1,098 — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments 9,096 114 1,461 28 — — 10,699 Total 344,874 1,585 41,823 114 — — 388,396 An analysis of changes in ECL exposures on issued foreign letters of credit from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 43 6 — — — — 49 Net change on exposures 38 7 — (1) — — 44 Transfer to Stage 1 — — — — — — — Transfer to Stage 2 (6) (3) 6 3 — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year 4 — (6) (2) — — (4) Foreign exchange adjustments 4 — — — — — 4 Total 83 10 — — — — 93 |
Performance guarantees | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 1,685,980 54,523 477,489 3,470 — 22 2,221,484 2,209,665 Substandard — — 7,586 — — — 7,586 9,157 Non-complying — — — 74 2,310 1,228 3,612 2,006 Total 1,685,980 54,523 485,075 3,544 2,310 1,250 2,232,682 2,220,828 |
Schedule of change in gross carrying amount and ECL allowances | An analysis of changes in the outstanding exposures on Performance guarantees from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 1,803,358 46,416 365,137 3,741 1,162 1,014 2,220,828 Net change on exposures (6,282) 8,008 (23,779) 1,963 (786) (1,935) (22,811) Transfer to Stage 1 189,344 10,346 (189,279) (10,258) (65) (88) — Transfer to Stage 2 (332,091) (9,034) 332,365 9,067 (274) (33) — Transfer to Stage 3 (13) (1,304) (2,256) (975) 2,269 2,279 — Foreign exchange adjustments 31,664 91 2,887 6 4 13 34,665 Total 1,685,980 54,523 485,075 3,544 2,310 1,250 2,232,682 An analysis of changes in ECL exposures on Performance guarantees from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 1,841 384 947 — 470 34 3,676 Net change on exposures 664 73 (113) (2) (310) (11) 301 Transfer to Stage 1 — 18 — — — (18) — Transfer to Stage 2 (439) (87) 442 90 (3) (3) — Transfer to Stage 3 — (80) (86) — 86 80 — Impact on year end ECL of exposures transferred between stages during the year 209 200 (444) (88) 250 (79) 48 Foreign exchange adjustments 33 1 19 — 2 — 55 Total 2,308 509 765 — 495 3 4,080 |
Undrawn credit lines | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 1,279,611 5,512,504 177,084 786,603 — 449 7,756,251 7,227,822 Substandard — — 1,502 — — — 1,502 1,791 Non-complying — — — 60 328 11,184 11,572 10,793 Total 1,279,611 5,512,504 178,586 786,663 328 11,633 7,769,325 7,240,406 |
Schedule of change in gross carrying amount and ECL allowances | An analysis of changes in the outstanding exposures undrawn credit lines from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 1,199,593 5,086,210 147,053 794,449 411 12,690 7,240,406 Net change on exposures 111,426 621,021 (5,449) (114,834) (326) (10,615) 601,223 Transfer to Stage 1 130,936 491,857 (130,926) (488,237) (11) (3,619) — Transfer to Stage 2 (166,795) (561,588) 166,892 563,941 (97) (2,353) — Transfer to Stage 3 (120) (1,928) (217) (13,476) 337 15,404 — Foreign exchange adjustments 4,571 (123,068) 1,233 44,820 14 126 (72,304) Total 1,279,611 5,512,504 178,586 786,663 328 11,633 7,769,325 An analysis of changes in ECL exposures on undrawn credit lines from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 937 8,071 147 4,747 — 5,069 18,971 Net change on exposures 684 2,796 21 (2,669) 41 (1,450) (577) Transfer to Stage 1 99 1,463 (96) (817) (4) (645) — Transfer to Stage 2 (87) (3,246) 124 3,898 (37) (652) — Transfer to Stage 3 — (92) (5) (818) 5 910 — Impact on year end ECL of exposures transferred between stages during the year (3) 31 (56) (441) (5) 2,028 1,554 Foreign exchange adjustments 4 100 2 294 — 38 438 Total 1,634 9,123 137 4,194 — 5,298 20,386 |
Other commitments | |
Disclosure of contingent liabilities [line items] | |
Schedule of credit quality and the maximum exposure to credit risk | 2018 2017 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Normal 46,561 — — — — — 46,561 60,609 Substandard — — — — — — — — Non-complying — — — — — — — — Total 46,561 — — — — — 46,561 60,609 |
Schedule of change in gross carrying amount and ECL allowances | An analysis of changes in the outstanding exposures on other commitments from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Outstanding exposure as at January 1, 2018 49,519 — 11,090 — — — 60,609 Net change on exposures (2,958) — (11,090) — — — (14,048) Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Foreign exchange adjustments — — — — — — — Total 46,561 — — — — — 46,561 An analysis of changes in ECL exposures on other commitments from January 1, 2018 to December 31, 2018 is as follows: 2018 Stage 1 Stage 2 Stage 3 Individual Group Individual Group Individual Group Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ ECL exposures as at January 1, 2018 — — — — — — — Net change on exposures — — — — — — — Transfer to Stage 1 — — — — — — — Transfer to Stage 2 — — — — — — — Transfer to Stage 3 — — — — — — — Impact on year end ECL of exposures transferred between stages during the year — — — — — — — Foreign exchange adjustments — — — — — — — Total — — — — — — — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits | |
Schedule of provisions for personnel benefits and payroll | 2017 2018 MCh$ MCh$ Short-term personnel benefits (a.2) 43,372 47,797 Vacation accrual (a.3) 25,159 26,855 Employee defined benefit plan (a.1)(*) 7,676 7,754 Other Benefits 10,421 10,173 Total 86,628 92,579 (*) See Note No. 2 (y) (iii). |
Schedule of employee defined benefit plan | 2017 2018 MCh$ MCh$ Current service cost (86) 250 Interest cost on benefit obligation 343 300 Actuarial gains and losses (164) 127 Net benefit expense 93 677 |
Schedule of principal assumptions used in determining pension obligations for the Bank's plan | December 31, December 31, 2017 2018 % % Discount rate 4.53 4.25 Annual salary increase 4.14 4.42 Payment probability 99.99 99.99 |
Schedule of changes in the present value of the defined benefit obligation | 2017 2018 MCh$ MCh$ Opening defined benefit obligation, January 1, 8,851 7,676 Increase (Decrease) in provision 257 550 Benefits paid (1,268) (599) Actuarial gains and losses (164) 127 Closing defined benefit obligation 7,676 7,754 |
Schedule of changes in provisions for incentive plans | 2017 2018 MCh$ MCh$ Balances as of January 1, 37,868 43,372 Provisions established 37,815 40,058 Provisions used (32,311) (35,633) Provisions released — — Balances as of December 31, 43,372 47,797 |
Schedule of changes in provisions for vacation | 2017 2018 MCh$ MCh$ Balances as of January 1, 25,539 25,159 Provisions established 5,626 7,529 Provisions used (6,006) (5,833) Provisions released — — Balances as of December 31, 25,159 26,855 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities | |
Schedule of other liabilities | 2017 2018 MCh$ MCh$ Accounts and notes payable (*) 190,151 176,826 Securities unliquidated 2,625 106,071 Documents intermediated 49,672 53,492 Cobranding 32,905 36,081 Financial guarantees (**) 11,374 — Deferred income 5,576 5,743 Insurance payments 478 992 Pending transactions 675 616 VAT payable 918 — Other 14,189 18,984 Total 308,563 398,805 (*) This item includes obligations that fall outside the Bank’s line of business such as withholding taxes, social security payments, insurance payable, and balances from material purchases and provisions for expenses pending payment. (**) IFRS 9 replaced IAS 39 for financial statements from January 1, 2018 onwards and includes new classification and measurement requirements for financial assets and liabilities (see note No. 5). |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies and Commitments | |
Commitments accounted for in off-balance sheet accounts | 2017 2018 MCh$ MCh$ Off-balance-sheet accounts Foreign office guarantees and standby letters of credit 285,035 341,676 Confirmed foreign letters of credit 64,970 56,764 Issued foreign letters of credit 94,313 388,396 Performance guarantees 2,220,828 2,232,682 Undrawn credit lines 7,240,406 7,769,325 Other commitments 60,609 46,561 Transactions on behalf of third parties Collections 168,353 160,367 Third-party resources managed by the Bank: Financial assets managed on behalf of third parties 7,121 27,334 Other assets managed on behalf of third parties — — Financial assets acquired on its own behalf 133,794 103,319 Fiduciary activities Securities held in safe custody in the Bank 5,738,873 6,930,293 Securities held in safe custody in other entities 14,990,439 13,783,748 Total 31,004,741 31,840,465 |
Summary of expiration of financial guarantees | 2017 Due after 1 Due after 3 year but years but Due within 1 within 3 within 5 Due after 5 year years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ Performance guarantees 1,608,314 523,597 80,623 8,294 2,220,828 Foreign office guarantees and standby letters of credit 218,532 66,006 280 217 285,035 Total 1,826,846 589,603 80,903 8,511 2,505,863 2018 Due after 1 Due after 3 year but years but Due within 1 within 3 within 5 Due after 5 year years years years Total MCh$ MCh$ MCh$ MCh$ MCh$ Performance guarantees 1,537,447 574,650 96,841 23,744 2,232,682 Foreign office guarantees and standby letters of credit 318,917 18,704 3,708 347 341,676 Total 1,856,364 593,354 100,549 24,091 2,574,358 |
Summary of estimated date of completion of respective litigation | As of December 31, 2018 2019 2020 2021 2022 Total MCh$ MCh$ MCh$ MCh$ MCh$ Legal contingencies 24 180 — — 204 (*)The trial in which the National Consumer Service brought a collective action against Banco de Chile ended by virtue of a conciliation agreement entered into between the parties on June 14, 2018, which was approved by the court by an executed resolution. |
Summary of guarantees given in relation to subsidiary's business activities | 2017 2018 MCh$ MCh$ Guarantees: Shares to secure short-sale transactions in: Securities Exchange of the Santiago Stock Exchange 20,249 59,074 Securities Exchange of the Electronic Stock Exchange of Chile 29,926 17,223 Fixed income securities to ensure system CCLV, Santiago Securities Exchange, Stock Exchange 3,995 5,976 Shares delivered to ensure equity loan, Chilean Electronic Stock Exchange, Stock Exchange 3,864 — Total 58,034 82,273 |
Summary of insurance policies contracted | Matter insured Amount Insured (UF) Responsibility for errors and omissions policy 60,000 Civil responsibility policy 500 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Schedule of share movements | Total Ordinary Shares Total shares as of December 31, 2016 97,624,347,430 Capitalization of retained earnings 1,819,784,762 Total shares as of December 31, 2017 99,444,132,192 Capitalization of retained earnings 1,572,948,922 Total Shares as of December 31, 2018 101,017,081,114 |
Schedule of shareholder's composition | As of December 31, 2017, the shareholder composition was as follows: % of Equity Corporate Name or Shareholder’s Name Shares Holding Sociedad Administradora de la Obligación Subordinada SAOS S.A. 28,593,701,789 28.75 LQ Inversiones Financieras S.A. 26,733,861,635 26.88 Sociedad Matriz del Banco de Chile S.A. 12,138,567,444 12.21 Other minority shareholders 31,978,001,324 32.16 Total 99,444,132,192 100.00 As of December 31, 2018, the shareholder composition was as follows: % of Equity Corporate Name or Shareholder’s Name Shares Holding Sociedad Administradora de la Obligación Subordinada SAOS S.A. 28,593,701,789 28.31 LQ Inversiones Financieras S.A. 27,460,203,382 27.18 Sociedad Matriz del Banco de Chile S.A. 12,138,573,251 12.02 Other minority shareholders 32,824,602,692 32.49 Total 101,017,081,114 100.00 |
Schedule of dividends declared and paid | 2016 2017 2018 Dividends on ordinary shares MCh$ (*) : 366,654 342,034 374,079 Dividends per ordinary share Ch$ (1) : 3.81 3.50 3.76 (*) This dividend per share is composed of the dividend paid to the Central Bank and common shareholders in the amounts of MCh$152,930 and MCh$221,149, respectively. The Central Bank has 29,161.4 million shares with a payment of Ch$5.2442658 per common share of Banco de Chile and for common shareholders the number of shares are 70,282.7 million with a payment of Ch$3.1465595 per common share of Banco de Chile. (1) Dividends per share are calculated by dividing the amount of the dividend paid during each year by the previous year’s number of shares outstanding. |
Schedule of the income and share data used in the calculation of EPS | As of December 31, 2016 2017 2018 Basic and diluted earnings per share: Net profits attributable to ordinary equity holders of the Bank MCh$ 575,051 572,080 603,633 Weighted average number of ordinary shares (*) 101,017,081,114 101,017,081,114 101,017,081,114 Earnings per share Ch$ 5.69 5.66 5.98 (*) During 2016, 2017 and 2018, the Bank capitalized 1,495,200,997, 1,819,784,762 and 1,572,948,922 shares respectively, which are considered in the earnings per share calculation as if they had been outstanding during all periods presented. |
Interest Revenue and Expenses (
Interest Revenue and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest Revenue and Expenses | |
Schedule of interest revenue | 2016 2017 2018 MCh$ MCh$ MCh$ Commercial loans 856,172 786,794 851,328 Consumer loans 613,962 614,393 613,293 Residential mortgage loans 447,582 401,862 502,832 Financial investments 30,725 35,403 52,909 Repurchase agreements 9,053 7,337 2,767 Loans and advances to banks 32,280 15,024 24,138 Gain (loss) from accounting hedges (76,378) 20,722 (58,560) Other interest revenue 3,596 5,165 11,910 Total 1,916,992 1,886,700 2,000,617 |
Schedule of interest expenses | 2016 2017 2018 MCh$ MCh$ MCh$ Savings accounts and time deposits 376,541 297,277 301,251 Debt issued 309,589 268,203 352,351 Other financial obligations 1,916 1,640 1,482 Repurchase agreements 6,223 5,193 8,901 Borrowings from financial institutions 13,504 19,255 29,275 (Gain) loss from accounting hedges (24,190) 54,834 (23,694) Demand deposits 6,241 5,350 9,380 Other interest expenses 435 253 694 Total 690,259 652,005 679,640 |
Schedule of loss from accounting hedge | 2016 2017 2018 MCh$ MCh$ MCh$ Cash Flow hedge (45,559) (29,477) (33,031) Fair value hedge (6,629) (4,635) (1,835) Total (52,188) (34,112) (34,866) |
Income and Expenses from Fees_2
Income and Expenses from Fees and Commissions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income and Expenses from Fees and Commissions | |
Schedule of income and expenses for fees and commissions | 2016 2017 2018 MCh$ MCh$ MCh$ Income from fees and commissions Card services 144,007 155,572 167,201 Investments in mutual funds and other 79,853 86,103 91,173 Collections and payments 49,362 50,343 52,717 Portfolio management 39,838 43,915 46,730 Insurance brokerage 28,036 30,163 32,886 Guarantees and letter of credit 23,183 24,485 25,021 Trading and securities management 13,666 18,741 24,632 Use of distribution channel 18,996 18,204 20,974 Financial advisory services 4,152 5,536 5,046 Lines of credit and overdrafts 5,795 5,000 4,837 Other fees earned 34,155 33,640 33,897 Total income from fees and commissions 441,043 471,702 505,114 Expenses from fees and commissions Credit card transactions (98,115) (96,872) (113,403) Fees for interbank transactions (10,361) (13,189) (16,554) Fees for securities transactions (3,969) (6,802) (7,544) Fees for collections and payments (6,427) (6,206) (6,546) Sales force fees (408) (213) (258) Other fees (492) (746) (854) Total expenses from fees and commissions (119,772) (124,028) (145,159) |
Net Financial Operating Income
Net Financial Operating Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Financial Operating Income | |
Schedule of gain (losses) from trading and brokerage activities | 2016 2017 2018 MCh$ MCh$ MCh$ Income on trading securities 42,415 46,207 42,605 Gain (loss) from mark to market 9,554 4,435 8,038 Financial assets held-for-trading 51,969 50,642 50,643 Sale of financial assets at fair value through other comprehensive income 65,320 6,514 1,118 Sale of loan portfolio 4,930 2,063 267 Net (loss) gain of other transactions 752 233 384 Derivative instruments 5,604 (89,113) 64,730 Total 128,575 (29,661) 117,142 |
Foreign Exchange Transactions_2
Foreign Exchange Transactions, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Foreign Exchange Transactions, net | |
Schedule of foreign exchange transactions, net | 2016 2017 2018 MCh$ MCh$ MCh$ Gain (loss) from accounting hedges (90,370) (64,135) 118,690 Translation difference, net (6,074) (7,221) 9,609 Indexed foreign currency 108,849 176,231 (125,598) Total 12,405 104,875 2,701 |
Provisions for Loan Losses (Tab
Provisions for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for Loan Losses | |
Summary of changes in provisions for loan losses | Loans and Loans to customers as of December 31, 2016 Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions — — — — — (5,944) (5,944) Group provisions — (45,462) (6,932) (261,838) (314,232) — (314,232) Provisions established net — (45,462) (6,932) (261,838) (314,232) (5,944) (320,176) Provisions released: Individual provisions 94 7,924 — — 7,924 2,575 10,593 Group provisions — — — — — 3,478 3,478 Provisions released net 94 7,924 — — 7,924 6,053 14,071 Recovery of written-off assets — 13,017 2,350 31,475 46,842 — 46,842 Provisions net allowances for credit risk 94 (24,521) (4,582) (230,363) (259,466) 109 (259,263) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2016 MCh$ Allowances established of loans to customer and loans and advances to banks (314,232) Allowances released of loans to customer and loans and advances to banks 8,018 Total allowances of loans to customer and loans and advances to banks (306,214) Loans and Loans to customers as of December 31, 2017 Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions (5) — — — — — (5) Group provisions — (47,837) (4,361) (247,810) (300,008) (3,131) (303,139) Provisions established net (5) (47,837) (4,361) (247,810) (300,008) (3,131) (303,144) Provisions released: Individual provisions — 28,571 — — 28,571 3,841 32,412 Group provisions — — — — — — — Provisions released net — 28,571 — — 28,571 3,841 32,412 Recovery of written-off assets — 13,750 3,246 32,481 49,477 — 49,477 Provisions net allowances for credit risk (5) (5,516) (1,115) (215,329) (221,960) 710 (221,255) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2017 MCh$ Allowances established of loans to customer and loans and advances to banks (300,013) Allowances released of loans to customer and loans and advances to banks 28,571 Total allowances of loans to customer and loans and advances to banks (271,442) Loans to customers as of December 31, 2018 Loans and Provisions for advance to Commercial Mortgage Consumer contingent banks loans loans loans Total loan risks Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Provisions established: Individual provisions (240) — — — — (2,368) (2,608) Group provisions ― (61,702) (7,546) (241,244) (310,492) ― (310,492) Provisions established net (240) (61,702) (7,546) (241,244) (310,492) (2,368) (313,100) Provisions released: Individual provisions — 871 — — 871 — 871 Group provisions — — — — — 327 327 Provisions released net — 871 — — 871 327 1,198 Recovery of written-off assets — 13,579 4,572 42,428 60,579 — 60,579 Provisions net allowances for credit risk (240) (47,252) (2,974) (198,816) (249,042) (2,041) (251,323) The detail of the amounts presented in the Consolidated Statement of Cash Flow is as follows: 2018 MCh$ Allowances established of loans to customer and loans and advances to banks (310,732) Allowances released of loans to customer and loans and advances to banks 871 Total allowances of loans to customer and loans and advances to banks (309,861) |
Personnel Expenses (Tables)
Personnel Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Personnel Expenses | |
Schedule of personnel expenses | 2016 2017 2018 MCh$ MCh$ MCh$ Remuneration 228,801 235,765 244,919 Bonuses and incentives 48,927 42,465 62,675 Variable Compensation 42,714 36,471 36,901 Lunch and health benefits 28,474 26,836 26,698 Gratifications 25,486 25,402 26,275 Staff severance indemnities 24,141 21,241 19,941 Training expenses 2,020 3,555 3,909 Other personnel expenses 17,355 17,596 19,312 Total 417,918 409,331 440,630 |
Administrative Expenses (Tables
Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Administrative Expenses | |
Schedule of administrative expenses | 2016 2017 2018 MCh$ MCh$ MCh$ General administrative expenses 209,304 211,611 231,458 Outsources services 46,923 51,949 50,898 Marketing expenses 32,781 30,698 31,375 Taxes, payroll taxes and contributions 14,161 14,242 14,937 Board expenses 3,175 2,955 2,809 Total 306,344 311,455 331,477 |
Depreciation, Amortization an_2
Depreciation, Amortization and Impairment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Depreciation, Amortization and Impairment | |
Schedule of depreciation and amortization | 2016 2017 2018 MCh$ MCh$ MCh$ Depreciation and amortization Depreciation of property and equipment (Note No.16a and Note No. 17) 24,694 26,176 27,185 Amortization of intangibles assets (Note No.15a) 10,881 11,360 10,496 Total 35,575 37,536 37,681 |
Schedule of impairment loss | 2016 2017 2018 MCh$ MCh$ MCh$ Impairment loss (Gain) loss on debt instruments at fair value through OCI — — (1,552) Impairment loss on property and equipment (Note No.16a) 274 166 334 Impairment loss on intangibles assets (Note No.15a) — — ― Total 274 166 (1,218) |
Other Operating Income (Tables)
Other Operating Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Income | |
Schedule of other operating income | 2016 2017 2018 MCh$ MCh$ MCh$ Rental income 8,671 8,863 9,013 Release of provisions for contingencies 120 160 7,526 Reimbursements for insurance policies 504 230 6,346 Expense recovery 3,275 4,372 4,218 Income for assets received in lieu of payment 2,978 1,941 3,650 Gain on sale of property and equipment 185 624 3,634 Recovery from correspondent banks 2,909 2,710 2,591 Credit card income 5,756 7,690 2,504 Other 4,177 3,369 5,813 Total 28,575 29,959 45,295 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Expenses | |
Schedule of other operating expenses | 2016 2017 2018 MCh$ MCh$ MCh$ Write-offs for operating risks (*) 5,475 6,360 11,378 Operations expenses leasing 1,893 10,152 4,501 Card administration 3,921 2,890 2,640 Provisions for contingencies 6,880 — 3 Other 8,767 6,466 11,064 Total 26,936 25,868 29,586 (*) As a consequence of the technological security incident that affected the Bank on May 24, 2018, a net write-off has been recognized for external fraud committed directly against the Bank in its accounts held with foreign correspondent banks for Ch$6,002 million. As a result of the procedures of the insurance policies contracted to cover the losses associated with this type of events, at the end of the year were recognized revenues for the entirety of this amount. See Note No. 38 “Reimbursements for insurance policies”. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Schedule of loans and accounts receivable and contingent loans to related parties | Production and Services Investment Companies (*) Companies (**) Individuals (***) Total 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Loans and accounts receivable: Commercial loans 243,989 221,351 169,403 132,366 8,871 13,183 422,263 366,900 Residential mortgage loans — — — — 33,695 44,756 33,695 44,756 Consumer loans — — — — 7,265 10,074 7,265 10,074 Gross loans 243,989 221,351 169,403 132,366 49,831 68,013 463,223 421,730 Allowance for loan losses (988) (651) (394) (363) (241) (302) (1,623) (1,316) Net loans 243,001 220,700 169,009 132,003 49,590 67,711 461,600 420,414 Contingent loans: Guarantees and sureties 4,527 5,102 21,146 14,963 — — 25,673 20,065 Letters of credits 294 5,310 1,170 2,776 — — 1,464 8,086 Foreign letters of credits — — — — — — — — Banks guarantees 34,457 45,842 23,071 30,122 — — 57,528 75,964 Undrawn credit lines 53,151 58,041 13,907 14,674 15,179 19,160 82,237 91,875 Other contingencies loans — — — — — — — — Total contingent loans 92,429 114,295 59,294 62,535 15,179 19,160 166,902 195,990 Provision for contingencies loans (217) (118) (81) (38) (48) (17) (346) (173) Contingent loans, net 92,212 114,177 59,213 62,497 15,131 19,143 166,556 195,817 Amount covered by guarantee: Mortgage 27,928 28,208 53,835 52,108 53,181 69,292 134,944 149,608 Warrant — — — — — — — — Pledge 1,417 — — — — — 1,417 — Others (****) 39,022 47,135 14,186 13,219 2,175 3,694 55,383 64,048 Total collateral 68,367 75,343 68,021 65,327 55,356 72,986 191,744 213,656 (*) For these effects are considered productive companies, those that meet the following conditions: (i) They engage in operating activities and generate a separable flow of income, (ii) Less than 50% of their assets are trading securities or investments. Service companies are considered entities whose main purpose is oriented to rendering services to third parties. (**) Investment companies include those legal entities that do not comply with the conditions for operating companies and are profit-oriented. (***)Individuals include key members of the management and correspond to those who directly or indirectly have authority and responsibility for planning, administrating and controlling the activities of the organization, including directors. This category also includes their family members who influence or are influenced by such individuals in their interactions with the organization. (****) These guarantees correspond mainly to shares and other financial guarantees. |
Schedule of other assets and liabilities with related parties | 2017 2018 MCh$ MCh$ Assets Cash and due from banks 57,563 23,086 Transactions in the course of collection 13,249 35,469 Financial assets held-for-trading — 205 Derivative instruments 323,186 415,683 Financial assets — 14,690 Other assets 114,536 80,569 Total 508,534 569,702 Liabilities Demand deposits 173,715 169,607 Transactions in the course of payment 16,116 58,987 Cash collateral on securities lent and repurchase agreements 25,227 84,465 Savings accounts and time deposits 169,322 124,362 Derivative instruments 370,356 337,299 Borrowings from financial institutions 251,555 228,269 Other liabilities 51,814 115,145 Total 1,058,105 1,118,134 |
Schedule of income and expenses from related party transactions | 2017 2018 Income Expense Income Expense Type of income or expense recognized MCh$ MCh$ MCh$ MCh$ Interest and revenue expenses 26,485 9,332 21,736 7,196 Fees and commission income 65,995 69,843 70,286 74,205 Net financial operating income Derivative instruments (*) 33,540 97,416 85,500 42,365 Other financial operations 1 — — — Release or established of provision for credit risk — 252 — 28 Operating expenses — 100,389 — 105,734 Other income and expenses 3,723 56 446 45 (*) The outcome of derivative operations is presented net at each related counterparty level. Additionally, this line includes operations with local counterpart banks (unrelated) which have been novated by Comder Contraparte Central S.A. (Related entity) for centralized clearing purposes, which generated a net loss of Ch$71,297 million as of December 31, 2018 (net loss of Ch$96,075 million as of December 31, 2017). |
Schedule of payments and composition of key management personnel | Payments to key management personnel: 2017 2018 MCh$ MCh$ Remunerations 4,149 3,926 Short-term benefits 3,302 3,476 Contract termination indemnity 276 1,037 Stock−based benefits — — Total 7,727 8,439 Composition of key personnel: N° of executives Position 2017 2018 CEO 1 1 CEOs of subsidiaries 6 6 Division Managers 12 13 Total 19 20 |
Schedule of directors' expenses and remunerations | Fees for attending Committees and Fees for attending Subsidiary Board Remunerations Board meetings meetings (1) Consulting Total 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Name of Directors MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Pablo Granifo Lavín 553 (*) 569 (*) 53 56 395 374 — — 1,001 999 Andrónico Luksic Craig 172 176 8 10 — — — — 180 186 Jaime Estévez Valencia 57 59 28 29 134 134 — — 219 222 Gonzalo Menéndez Duque 57 59 23 27 113 119 8 — 201 205 Francisco Pérez Mackenna 57 59 23 20 75 58 — — 155 137 Rodrigo Manubens Moltedo 57 59 28 28 53 54 — — 138 141 Thomas Fürst Freiwirth 57 59 19 21 36 42 — — 112 122 Jean-Paul Luksic Fontbona 57 59 12 11 — — — — 69 70 Andrés Ergas Heymann 43 59 20 27 41 70 — — 104 156 Alfredo Ergas Segal 43 59 20 27 49 71 — — 112 157 Jorge Awad Mehech 14 — 6 — 26 — — — 46 — Jorge Ergas Heymann 14 — 6 — 19 — — — 39 — Other directors of subsidiaries — — — — 129 116 — — 129 116 Total 1,181 1,217 246 256 1,070 1,038 8 — 2,505 2,511 (1) It includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda. of Ch$12 million (Ch$18 million in 2017). (*) It includes a provision of Ch$391 million (Ch$380 million in 2017) for an incentive subject to achieving the Bank’s forecasted earnings. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial instrument disclosures | |
Summary of valuation techniques and inputs | Type of Financial Instrument Valuation Method Description: Inputs and Sources Local Bank and Corporate Bonds Discounted cash Prices are provided by third party price providers that are widely used in the Chilean market. Model is based on a Base Yield (Central Bank Bonds) and issuer spread. The model is based on daily prices and risk/maturity similarities between Instruments. Offshore Bank and Corporate Bonds Prices are provided by third party price providers that are widely used in the Chilean market. Local Central Bank and Treasury Bonds Prices are provided by third party price providers that are widely used in the Chilean market. Mortgage Notes Prices are provided by third party price providers that are widely used in the Chilean market. Time Deposits Prices are provided by third party price providers that are widely used in the Chilean market. Cross Currency Swaps, Interest Rate Swaps, FX Forwards, Inflation Forwards Forward Points, Inflation forecast and local swap rates are provided by market brokers that are widely used in the Chilean market Offshore rates and spreads are obtained from third party price providers that are widely used in the Chilean market. Zero Coupon rates are calculated by using the bootstrapping method over swap rates. FX Options Black-Scholes Prices for volatility surface estimates are obtained from market brokers that are widely used in the Chilean market. |
Schedule of fair value of Financial Assets/Liabilities on the balance sheet | Level 1 Level 2 Level 3 Total 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading From the Chilean government and Central Bank 623,276 178,692 693,888 1,344,780 — — 1,317,164 1,523,472 Mutual fund investments ― 87,841 ― ― — — ― 87,841 Other instruments issued in Chile 714 1,663 212,366 107,078 8,012 20,866 221,092 129,607 Instruments issued abroad 322 4,446 ― ― — — 322 4,446 Subtotal 624,312 272,642 906,254 1,451,858 8,012 20,866 1,538,578 1,745,366 Derivative contracts for trading purposes Forwards — — 506,614 735,444 — — 506,614 735,444 Swaps — — 710,123 738,130 — — 710,123 738,130 Call options — — 514 4,839 — — 514 4,839 Put options — — 2,841 120 — — 2,841 120 Futures — — ― ― — — ― ― Subtotal — — 1,220,092 1,478,533 — — 1,220,092 1,478,533 Hedge derivative contracts Fair value hedge (Swaps) — — 277 1,116 — — 277 1,116 Cash flow hedge (Swaps) — — 27,572 34,298 — — 27,572 34,298 Subtotal — — 27,849 35,414 — — 27,849 35,414 Total — — 1,247,941 1,513,947 — — 1,247,941 1,513,947 Financial assets available-for-sale From the Chilean government and Central Bank 229,296 — 127,072 — — — 356,368 — Other instruments issued in Chile ― — 1,122,648 — 46,265 — 1,168,913 — Instruments issued abroad 984 — ― — 50 — 1,034 — Subtotal 230,280 — 1,249,720 — 46,315 — 1,526,315 — Financial assets at fair value through other comprehensive income Debt instruments (1): From the Chilean government and Central Bank — 99,132 — 65,090 — — — 164,222 Instruments issued in Chile — ― — 747,653 — 23,021 — 770,674 Instruments issued abroad — ― — 108,544 — ― — 108,544 Subtotal — 99,132 — 921,287 — 23,021 — 1,043,440 Equity instruments: Instruments issued in Chile — ― — 8,939 — — — 8,939 Instruments issued abroad — 723 — ― — 89 — 812 Subtotal — 723 — 8,939 — 89 — 9,751 Total 230,280 99,855 1,249,720 930,226 46,315 23,110 1,526,315 1,053,191 Other assets Mutual fund investments 78,069 — — — — — 78,069 — Subtotal 78,069 — — — — — 78,069 — Total 932,661 372,497 3,403,915 3,896,031 54,327 43,976 4,390,903 4,312,504 Financial liabilities Derivative contracts for trading purposes Forwards — — 575,137 631,089 — — 575,137 631,089 Swaps — — 727,765 854,708 — — 727,765 854,708 Call options — — 472 2,921 — — 472 2,921 Put options — — 3,403 1,534 — — 3,403 1,534 Futures — — ― ― — — — ― Subtotal — — 1,306,777 1,490,252 — — 1,306,777 1,490,252 Hedge derivative contracts Fair value hedge (Swaps) — — 5,330 6,164 — — 5,330 6,164 Cash flow hedge (Swaps) — — 80,888 31,818 — — 80,888 31,818 Subtotal — — 86,218 37,982 — — 86,218 37,982 Total — — 1,392,995 1,528,234 — — 1,392,995 1,528,234 (1) As of December 31, 2018, 80% of instruments of level 3 has denomination “Investment Grade”. Also, 100% of total of these financial instruments correspond to domestic issuers. |
Schedule of reconciliation between the beginning and ending balances of instruments classified as Level 3, whose fair value is reflected in the financial statements | 2017 Gain (Loss) Gain (Loss) Balance as of Balance as of Recognized in Recognized in Transfer from Transfer to December January 1, 2017 Income (1) Equity (2) Purchases Sales Level 1 and 2 Level 1 and 2 31, 2017 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading: Other instruments issued in Chile 8,960 (7) — 7,446 (10,772) 2,385 — 8,012 Subtotal 8,960 (7) — 7,446 (10,772) 2,385 — 8,012 Financial assets available-for-sale: Other instruments issued in Chile 76,005 (4,186) 1,137 4,922 (28,604) 2,672 (5,681) 46,265 Instruments issued abroad 54 — (4) — — — — 50 Subtotal 76,059 (4,186) 1,133 4,922 (28,604) 2,672 (5,681) 46,315 Total 85,019 (4,193) 1,133 12,368 (39,376) 5,057 (5,681) 54,327 2018 Gain (Loss) Gain (Loss) Balance as of Balance as of Recognized in Recognized in Transfer from Transfer to December 31, January 1, 2018 Income (1) Equity (2) Purchases Sales Level 1 and 2 Level 1 and 2 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Financial assets held-for-trading: Other instruments issued in Chile 8,012 176 — 48,740 (36,062) — — 20,866 Subtotal 8,012 176 — 48,740 (36,062) — — 20,866 Financial assets at fair value through OCI: Debt instruments: Instruments issued in Chile 46,265 2,539 (292) — (20,520) — (4,971) 23,021 Equity instruments: Instruments issued abroad 50 — 39 — — — — 89 Subtotal 46,315 2,539 (253) — (20,520) — (4,971) 23,110 Total 54,327 2,715 (253) 48,740 (56,582) — (4,971) 43,976 (1) It is recorded in the income statement under “Net financial operating income” (2) It is recorded in Equity under “Other Comprehensive Income” |
Schedule of transfers between levels for financial assets and liabilities whose fair value is recorded in the consolidated financial statements | Transfers from level 1 to level 2 2017 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank 4,688 Instruments issued abroad From the Chilean Government and Central Bank — Transfers from level 2 to level 1 2017 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank 3,498 Instruments issued abroad From the Chilean Government and Central Bank 4,373 Transfers from level 1 to level 2 2018 Financial assets MCh$ Financial assets held-for-trading instruments 496 From the Chilean Government and Central Bank Financial assets at fair value through OCI From the Chilean Government and Central Bank 9,444 Transfers from level 2 to level 1 2018 Financial assets MCh$ Financial assets held-for-trading instruments From the Chilean Government and Central Bank — Financial assets at fair value through OCI From the Chilean Government and Central Bank — |
Schedule of impact on the fair value of Level 3 financial instruments using alternative assumptions that are reasonably possible | As of December 31, 2017 As of December 31, 2018 Sensitivity to Sensitivity to changes in key changes in key assumptions of assumptions of Level 3 models Level 3 models Financial Assets MCh$ MCh$ MCh$ MCh$ Financial assets held-for-trading Other instruments issued in Chile 8,012 (26) 20,866 (26) Subtotal 8,012 (26) 20,866 (26) Financial assets available-for-sale Other instruments issued in Chile 46,265 (417) — — Instruments issued abroad 50 — — — Subtotal 46,315 (417) — — Financial assets at fair value through OCI Debt instrument: Other instruments issued in Chile — — 23,021 (195) Equity instrument: Instruments issued abroad — — 89 — Subtotal — — 23,110 (195) Total 54,327 (443) 43,976 (221) |
Schedule of fair values of the financial assets and liabilities that are not recorded at fair value in the Statement of Financial Position | Book Value Fair Value 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 880,081 1,057,393 880,081 Transactions in the course of collection 255,968 289,194 255,968 289,194 Cash collateral on securities borrowed and reverse repurchase agreements 91,641 97,289 91,641 97,289 Subtotal 1,405,002 1,266,564 1,405,002 1,266,564 Loans and advances to banks Domestic banks 119,998 99,776 119,998 99,776 Chilean Central Bank 350,916 1,100,831 350,916 1,100,831 Foreign banks 289,107 293,777 289,107 286,063 Subtotal 760,021 1,494,384 760,021 1,486,670 Loans to customers, net Commercial loans 13,739,589 15,209,534 13,477,466 14,949,852 Residential mortgage loans 7,445,221 8,017,743 7,769,694 8,451,099 Consumer loans 3,770,882 4,113,977 3,773,005 4,116,261 Subtotal 24,955,692 27,341,254 25,020,165 27,517,212 Total 27,120,715 30,102,202 27,185,188 30,270,446 Liabilities Current accounts and other demand deposits 8,915,706 9,584,488 8,915,706 9,584,488 Transactions in the course of payment 29,871 44,436 29,871 44,436 Cash collateral on securities lent and reverse repurchase agreements 195,392 303,820 195,392 303,820 Saving accounts and time deposits 10,067,778 10,656,174 10,073,030 10,632,350 Borrowings from financial institutions 1,195,028 1,516,759 1,188,943 1,506,940 Other financial obligations 137,163 118,014 137,163 119,024 Subtotal 20,540,938 22,223,691 20,540,105 22,191,058 Debt issued Letters of credit for residential purposes 21,059 15,040 22,542 15,982 Letters of credit for general purposes 2,365 1,328 2,532 1,411 Bonds 5,769,334 6,772,990 5,896,424 6,897,317 Subordinated bonds 696,217 686,194 699,926 732,611 Subtotal 6,488,975 7,475,552 6,621,424 7,647,321 Total 27,029,913 29,699,243 27,161,529 29,838,379 |
Schedule of figures by hierarchy, for financial assets/liabilities not measured at fair value on the balance sheet | Level 1 Level 2 Level 3 Total Estimated Fair Value Estimated Fair Value Estimated Fair Value Estimated Fair Value 2017 2018 2017 2018 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 880,081 — — — — 1,057,393 880,081 Transactions in the course of collection 255,968 289,194 — — — — 255,968 289,194 Receivables from repurchase agreements and security borrowing 91,641 97,289 — — — — 91,641 97,289 Subtotal 1,405,002 1,266,564 — — — — 1,405,002 1,266,564 Loans and advances to banks Domestic banks 119,998 99,776 — — — ― 119,998 99,776 Central bank 350,916 1,100,831 — — — ― 350,916 1,100,831 Foreign banks 289,107 — — — — 286,063 289,107 286,063 Subtotal 760,021 1,200,607 — — — 286,063 760,021 1,486,670 Loans to customers, net Commercial loans — — — — 13,477,466 14,949,852 13,477,466 14,949,852 Residential mortgage loans — — — — 7,769,694 8,451,099 7,769,694 8,451,099 Consumer loans — — — — 3,773,005 4,116,261 3,773,005 4,116,261 Subtotal — — — — 25,020,165 27,517,212 25,020,165 27,517,212 Total 2,165,023 2,467,171 — — 25,020,165 27,803,275 27,185,188 30,270,446 Liabilities Current accounts and other demand deposits 8,915,706 9,584,488 — — — — 8,915,706 9,584,488 Transactions in the course of payment 29,871 44,436 — — — — 29,871 44,436 Payables from repurchase agreements and security lending 195,392 303,820 — — — — 195,392 303,820 Savings accounts and time deposits — — — — 10,073,030 10,632,350 10,073,030 10,632,350 Borrowings from financial institutions — — — — 1,188,943 1,506,940 1,188,943 1,506,940 Other financial obligations 137,163 — — — ― 119,024 137,163 119,024 Subtotal 9,278,132 9,932,744 — — 11,261,973 12,258,314 20,540,105 22,191,058 Debt Issued Letters of credit for residential purposes — — 22,542 15,982 — ― 22,542 15,982 Letters of credit for general purposes — — 2,532 1,411 — ― 2,532 1,411 Bonds — — 5,896,424 6,897,317 — ― 5,896,424 6,897,317 Subordinate bonds — — — ― 699,926 732,611 699,926 732,611 Subtotal — — 5,921,498 6,914,710 699,926 732,611 6,621,424 7,647,321 Total 9,278,132 9,932,744 5,921,498 6,914,710 11,961,899 12,990,925 27,161,529 29,838,379 |
Schedule of offsetting of financial assets and liabilities | Effect of offsetting on balance sheet Related amount not offset Net amounts reported Gross amount Amounts offset on the balance sheet Financial Instruments Financial Collateral Net amount As of December 31, 2017 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Derivative financial assets 1,247,941 — 1,247,941 (600,439) (34,212) 613,290 Derivative financial liabilities 1,392,995 — 1,392,995 (600,439) (83,523) 709,033 Effect of offsetting on balance sheet Related amount not offset Net amounts reported Gross amount Amounts offset on the balance sheet Financial Instruments Financial Collateral Net amount As of December 31, 2018 MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Derivative financial assets 1,513,947 — 1,513,947 (1,007,130) (30,036) 476,781 Derivative financial liabilities 1,528,234 — 1,528,234 (1,007,130) (233,450) 287,654 |
Fair Value - not measured at fair value | |
Financial instrument disclosures | |
Summary of valuation techniques and inputs | Type of Financial Instrument Valuation Method Description: Inputs and Sources Local Bank and Corporate Bonds Discounted cash flows model Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (Central Bank Bonds) and issuer spread. These inputs (base yield and issuer spread) are provided on a daily basis by third party price providers that are widely used in the Chilean market. Offshore Bank and Corporate Bonds Discounted cash flows model Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (US-Libor) and issuer spread. These inputs (base yield and issuer spread) are provided on a weekly basis by third party price providers that are widely used in the Chilean market. |
Maturity of Assets and Liabil_2
Maturity of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Maturity of Assets and Liabilities | |
Schedule of classification of assets and liabilities in the order of liquidity | As of December 31, 2017 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Assets Cash and due from banks 1,057,393 — 1,057,393 Transactions in the course of collection 255,968 — 255,968 Financial assets held-for-trading 1,538,578 — 1,538,578 Receivables from repurchase agreements and security borrowing 91,641 — 91,641 Derivative instruments 626,029 621,912 1,247,941 Loans in advance to banks (*) 729,434 30,851 760,285 Loans to customers (*) 9,823,290 15,628,223 25,451,513 Financial assets available-for-sale 1,044,832 481,483 1,526,315 Investments in other companies — 35,771 35,771 Intangible assets — 72,455 72,455 Property and equipment — 216,259 216,259 Investment properties — 14,306 14,306 Current tax assets 23,032 — 23,032 Deferred tax assets, net — 161,265 161,265 Other assets 110,662 494,138 604,800 Total Assets 15,300,859 17,756,663 33,057,522 As of December 31, 2018 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Assets Cash and due from banks 880,081 — 880,081 Transactions in the course of collection 289,194 — 289,194 Financial assets held-for-trading 1,745,366 — 1,745,366 Receivables from repurchase agreements and security borrowing 97,289 — 97,289 Derivative instruments 776,815 737,132 1,513,947 Loans in advance to banks (*) 1,471,955 23,441 1,495,396 Loans to customers (*) 11,070,708 16,855,924 27,926,632 Financial assets at fair value through OCI 606,880 446,311 1,053,191 Investments in other companies — 42,252 42,252 Intangible assets — 85,471 85,471 Property and equipment — 215,872 215,872 Investment properties — 13,938 13,938 Current tax assets 677 — 677 Deferred tax assets, net — 192,840 192,840 Other assets 28,478 623,213 651,691 Total Assets 16,967,443 19,236,394 36,203,837 (*) The respective provisions, which amount to Ch$495,821 million and Ch$585,378 million in 2017 and 2018, respectively, for loans to customers and Ch$264 million and Ch$1,012 million for loans and advances to banks, have not been deducted from these balances. As of December 31, 2017 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Liabilities Current accounts and other demand deposits 8,915,706 — 8,915,706 Transactions in the course of payment 29,871 — 29,871 Payables from repurchase agreements and security lending 195,392 — 195,392 Saving accounts and time deposits 9,831,087 236,691 10,067,778 Derivative instruments 653,073 739,922 1,392,995 Borrowings from financial institutions 1,121,026 74,002 1,195,028 Debt issued 1,076,689 5,412,286 6,488,975 Other financial obligations 119,499 17,664 137,163 Current tax liabilities — 3,453 3,453 Provisions 194,073 464 194,537 Employee benefits 25,159 61,469 86,628 Other liabilities 49,672 258,891 308,563 Total Liabilities 22,211,247 6,804,842 29,016,089 As of December 31, 2018 Less than 12 months Over 1 year Total MCh$ MCh$ MCh$ Liabilities Current accounts and other demand deposits 9,584,488 — 9,584,488 Transactions in the course of payment 44,436 — 44,436 Payables from repurchase agreements and security lending 303,820 — 303,820 Saving accounts and time deposits 10,065,943 590,231 10,656,174 Derivative instruments 719,300 808,934 1,528,234 Borrowings from financial institutions 1,437,461 79,298 1,516,759 Debt issued 1,243,357 6,232,195 7,475,552 Other financial obligations 111,024 6,990 118,014 Current tax liabilities — 20,924 20,924 Provisions 178,486 25,460 203,946 Employee benefits 26,855 65,724 92,579 Other liabilities 36,081 362,724 398,805 Total Liabilities 23,751,251 8,192,480 31,943,731 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risk Management | |
Schedule of credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector | The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2017: Chile United States Brazil Other Total MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 695,213 271,564 — 90,616 1,057,393 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile 1,317,164 — — — 1,317,164 Other instruments issued in Chile 221,092 — — — 221,092 Instruments issued abroad — 322 — — 322 Subtotal 1,538,256 322 — — 1,538,578 Cash collateral on securities borrowed and reverse repurchase agreements 91,641 — — — 91,641 Derivative Contracts for Trading Purposes Forwards 392,130 23,162 — 91,322 506,614 Swaps 472,492 79,614 — 158,017 710,123 Call Options 514 — — — 514 Put Options 2,841 — — — 2,841 Futures — — — — — Subtotal 867,977 102,776 — 249,339 1,220,092 Hedge Derivative Contracts Forwards — — — — — Swaps — 8,632 — 19,217 27,849 Call Options — — — — — Put Options — — — — — Futures — — — — — Others — — — — — Subtotal — 8,632 — 19,217 27,849 Loans and advances to Banks (before allowances) Central Bank of Chile 350,916 — — — 350,916 Domestic banks 120,017 — — — 120,017 Foreign banks — — 158,524 130,828 289,352 Subtotal 470,933 — 158,524 130,828 760,285 Loans to Customers (before allowances) Commercial loans 13,902,516 — — 58,302 13,960,818 Residential mortgage loans 7,477,236 — — — 7,477,236 Consumer loans 4,013,459 — — — 4,013,459 Subtotal 25,393,211 — — 58,302 25,451,513 Financial assets available-for-sale From the Chilean government and Central Bank 356,368 — — — 356,368 Other instruments issued in Chile 1,168,913 — — — 1,168,913 Instruments issued abroad — — — 1,034 1,034 Subtotal 1,525,281 — — 1,034 1,526,315 Electricity, Agriculture Financial Chilean Retail Gas and and Transportation Services Central Bank Government (Individuals) Trade Manufacturing Mining Water Livestock Fishing and Telecom Construction Services Other Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 894,972 162,421 — — — — — — — — — — — — 1,057,393 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile — 1,062,558 254,606 — — — — — — — — — — — 1,317,164 Other instruments issued in Chile 221,092 — — — — — — — — — — — — — 221,092 Instruments issued abroad 322 — — — — — — — — — — — — — 322 Subtotal 221,414 1,062,558 254,606 — — — — — — — — — — — 1,538,578 Cash collateral on securities borrowed and reverse repurchase Agreements Payables 32,555 — 2,576 — 24,717 — 12,522 7,464 13 672 7,382 — 3,740 — 91,641 Derivative Contracts for Trading Purposes Forwards 245,873 — — — 7,666 9,860 2,561 84 54 219 2,368 29 237,900 — 506,614 Swaps 643,735 — — — 44,773 5,563 839 4,679 2,862 9 7,244 ― 419 — 710,123 Call Options 269 — — — 32 90 ― ― 67 ― 52 1 3 — 514 Put Options 734 — — — 1,432 396 ― ― 222 ― ― 11 46 — 2,841 Futures — — — — — ― ― ― ― ― ― ― ― — — Subtotal 890,611 — — — 53,903 15,909 3,400 4,763 3,205 228 9,664 41 238,368 — 1,220,092 Hedge Derivative Contracts Forwards — — — — — — — — — — — — — — — Swaps 27,849 — — — — — — — — — — — — — 27,849 Call Options — — — — — — — — — — — — — — — Put Options — — — — — — — — — — — — — — — Futures — — — — — — — — — — — — — — — Subtotal 27,849 — — — — — — — — — — — — — 27,849 Loans and advances to Banks Central Bank of Chile — 350,916 — — — — — — — — — — — — 350,916 Domestic banks 120,017 — — — — — — — — — — — — — 120,017 Foreign banks 289,352 — — — — — — — — — — — — — 289,352 Subtotal 409,369 350,916 — — — — — — — — — — — — 760,285 Loans to Customers, Net Commercial loans 1,851,649 — — — 2,035,129 1,399,692 422,176 565,695 1,354,069 145,266 1,612,930 1,493,373 1,964,238 1,116,601 13,960,818 Residential mortgage loans — — — 7,477,236 — ― ― ― ― ― ― ― ― ― 7,477,236 Consumer loans — — — 4,013,459 — ― ― ― ― ― ― ― ― ― 4,013,459 Subtotal 1,851,649 — — 11,490,695 2,035,129 1,399,692 422,176 565,695 1,354,069 145,266 1,612,930 1,493,373 1,964,238 1,116,601 25,451,513 Financial assets available-for-sale From the Chilean government and Central Bank — 207,474 148,894 — — — ― ― ― — ― — — — 356,368 Other instruments issued in Chile 1,106,003 — — — 31,833 8,589 7,662 2,883 6,972 — 4,971 — — — 1,168,913 Instruments issued abroad 1,034 — — — — — ― ― ― — ― — — — 1,034 Subtotal 1,107,037 207,474 148,894 — 31,833 8,589 7,662 2,883 6,972 — 4,971 — — — 1,526,315 The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2018: Chile United States Brazil Other Total MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 773,368 69,343 — 37,370 880,081 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile 1,523,472 — — — 1,523,472 Other instruments issued in Chile 129,607 — — — 129,607 Instruments issued abroad — 4,446 — — 4,446 Mutual fund investment 87,841 — — — 87,841 Subtotal 1,740,920 4,446 — — 1,745,366 Cash collateral on securities borrowed and reverse repurchase agreements 97,289 — — — 97,289 Derivative Contracts for Trading Purposes Forwards 670,595 23,082 — 41,767 735,444 Swaps 453,191 98,414 — 186,525 738,130 Call Options 4,309 — — 530 4,839 Put Options 56 — — 64 120 Futures — — — — — Subtotal 1,128,151 121,496 — 228,886 1,478,533 Hedge Derivative Contracts Forwards — — — — — Swaps 4,547 14,348 — 16,519 35,414 Call Options — — — — — Put Options — — — — — Futures — — — — — Others — — — — — Subtotal 4,547 14,348 — 16,519 35,414 Loans and advances to Banks (before allowances) Central Bank of Chile 1,100,831 — — — 1,100,831 Domestic banks 100,023 — — — 100,023 Foreign banks — — 209,693 84,849 294,542 Subtotal 1,200,854 — 209,693 84,849 1,495,396 Loans to Customers (before allowances) Commercial loans 15,344,854 — 354 93,190 15,438,398 Residential mortgage loans 8,052,073 — — — 8,052,073 Consumer loans 4,436,161 — — — 4,436,161 Subtotal 27,833,088 — 354 93,190 27,926,632 Financial Assets at Fair Value through OCI From the Chilean Government and Central Bank of Chile 164,222 — — — 164,222 Other instruments issued in Chile 779,613 — — — 779,613 Instruments issued abroad — 108,544 — 812 109,356 Subtotal 943,835 108,544 — 812 1,053,191 Electricity, Agriculture Financial Chilean Retail Gas and and Transportation Services Central Bank Government (Individuals) Trade Manufacturing Mining Water Livestock Fishing and Telecom Construction Services Other Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Financial Assets Cash and Due from Banks 758,274 121,807 — — — — — — — — — — — — 880,081 Financial Assets held-for-trading From the Chilean Government and Central Bank of Chile — 1,434,986 88,486 — — — — — — — — — — — 1,523,472 Other instruments issued in Chile 129,607 — — — — — — — — — — — — — 129,607 Instruments issued abroad 4,446 — — — — — — — — — — — — — 4,446 Mutual fund investment 87,841 — — — — — — — — — — — — — 87,841 Subtotal 221,894 1,434,986 88,486 — — — — — — — — — — — 1,745,366 Cash collateral on securities borrowed and reverse repurchase Agreements Payables 29,031 742 — — 37,520 — 5,017 4,466 3,096 59 15,637 — 985 736 97,289 Derivative Contracts for Trading Purposes Forwards 374,006 — — — 7,194 13,328 40 10,288 4,211 411 98 455 296 325,117 735,444 Swaps 584,743 — — — 51,916 7,348 22 4,026 10,006 2,249 2,235 680 74,250 655 738,130 Call Options 1,669 — — — 389 16 — 1,090 1,489 80 — 59 36 11 4,839 Put Options 64 — — — 51 5 — — — — — — — — 120 Futures — — — — — — — — — — — — — — — Subtotal 960,482 — — — 59,550 20,697 62 15,404 15,706 2,740 2,333 1,194 74,582 325,783 1,478,533 Hedge Derivative Contracts Forwards — — — — — — — — — — — — — — — Swaps 35,414 — — — — — — — — — — — — — 35,414 Call Options — — — — — — — — — — — — — — — Put Options — — — — — — — — — — — — — — — Futures — — — — — — — — — — — — — — — Subtotal 35,414 — — — — — — — — — — — — — 35,414 Loans and advances to Banks Central Bank of Chile — 1,100,831 — — — — — — — — — — — — 1,100,831 Domestic banks 100,023 — — — — — — — — — — — — — 100,023 Foreign banks 294,542 — — — — — — — — — — — — — 294,542 Subtotal 394,565 1,100,831 — — — — — — — — — — — — 1,495,396 Loans to Customers, Net Commercial loans 2,122,599 — — — 2,324,325 1,579,475 453,549 461,351 1,582,520 156,472 1,498,142 1,752,237 2,109,491 1,398,237 15,438,398 Residential mortgage loans — — — 8,052,073 — — — — — — — — — — 8,052,073 Consumer loans — — — 4,436,161 — — — — — — — — — — 4,436,161 Subtotal 2,122,599 — — 12,488,234 2,324,325 1,579,475 453,549 461,351 1,582,520 156,472 1,498,142 1,752,237 2,109,491 1,398,237 27,926,632 Financial Assets at Fair Value through OCI From the Chilean Government and Central Bank of Chile — 135,145 29,077 — — — — — — — — — — — 164,222 Other instruments issued in Chile 689,595 — — — 22,390 — — 8,245 — — 4,938 — — 54,445 779,613 Instruments issued abroad 109,356 — — — — — — — — — — — — — 109,356 Subtotal 798,951 135,145 29,077 — 22,390 — — 8,245 — — 4,938 — — 54,445 1,053,191 |
Schedule of guarantee values | Fair value of collateral and credit enhancements held as of December 31, 2017 Maximum exposure to credit risk Mortgages Pledge (*) Securities Warrants Others Net collateral Net exposure Loans to customers: MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Corporate lending 9,775,740 2,269,716 72,893 438,595 3,381 243,961 3,028,546 6,747,194 Small business lending 4,185,078 2,543,343 28,699 32,034 — 58,255 2,662,331 1,522,747 Consumer lending 4,013,459 283,091 938 1,776 — 18,594 304,399 3,709,060 Mortgage lending 7,477,236 6,922,454 90 267 — — 6,922,811 554,425 Total 25,451,513 12,018,604 102,620 472,672 3,381 320,810 12,918,087 12,533,426 Fair value of collateral and credit enhancements held as of December 31, 2018 Maximum exposure to credit risk Mortgages Pledge (*) Securities Warrants Others Net collateral Net exposure Loans to customers: MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Corporate lending 11,705,859 2,589,429 75,105 423,556 2,263 221,919 3,312,272 8,393,587 Small business lending 3,732,539 2,977,286 31,270 28,974 — 71,140 3,108,670 623,869 Consumer lending 4,436,161 332,030 967 2,244 — 20,090 355,331 4,080,830 Mortgage lending 8,052,073 7,493,073 58 265 — — 7,493,396 558,677 Total 27,926,632 13,391,818 107,400 455,039 2,263 313,149 14,269,669 13,656,963 (*) Includes agricultural and industrial pledges and pledges without conveyance. |
Schedule of credit quality by asset class, based on the Bank's credit rating system | As of December 31, 2017: Default 1 to 29 30 to 59 60 to 89 days days days MCh$ MCh$ MCh$ Loans and advances to banks 6,880 — — Subtotal past-due loans and advances to banks 6,880 — — Commercial loans 183,374 34,457 53,224 Import-export financing 19,628 2,403 647 Factoring transactions 30,204 3,723 748 Commercial lease transactions 52,365 12,407 2,144 Other loans and receivables 1,195 599 724 Residential mortgage loans 143,619 56,422 26,365 Consumer loans 203,692 91,928 38,320 Subtotal past-due loans to customers 634,077 201,939 122,172 Total 640,957 201,939 122,172 As of December 31, 2018: Default 1 to 29 30 to 59 60 to 89 days days days MCh$ MCh$ MCh$ Loans and advances to banks 273 — — Subtotal past-due loans and advances to banks 273 — — Commercial loans 132,707 40,823 27,527 Import-export financing 13,892 2,194 618 Factoring transactions 44,106 7,540 726 Commercial lease transactions 92,057 6,166 3,230 Other loans and receivables 1,462 777 470 Residential mortgage loans 154,751 67,257 24,653 Consumer loans 217,923 102,752 40,782 Subtotal past-due loans to customers 656,898 227,509 98,006 Total 657,171 227,509 98,006 |
Schedule of aging analysis of loans | As of December 31, the aging analysis of loans is as follows: Past due but not impaired (*) Neither Over past due Over 30 days 60 days or Up to and up to and up to Over As of impaired 30 days 60 days 90 days 90 days Total December 31, MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ 2017 23,928,184 533,690 134,316 37,292 2,008 24,635,490 2018 26,376,542 538,681 145,130 37,371 2,566 27,100,290 (*) These amounts include installments that are overdue, plus the remaining balance of principal and interest on such loans. |
Schedule of book value of loans with renegotiated terms | 2017 2018 MCh$ MCh$ Financial assets Loans and advances to banks Domestic banks — — Foreign banks — — Subtotal — — Loans to customers, net Commercial loans 191,314 192,646 Residential mortgage loans 17,400 14,463 Consumer loans 367,350 362,562 Subtotal 576,064 569,671 Total renegotiated financial assets 576,064 569,671 |
Schedule of amortized costs and net loss of modified financial assets | 2018 MCh$ Amortised costs of financial assets modified during the period 912,646 Net modification loss 298,761 |
Schedule of gross carrying amount of previously modified financial assets for which loss allowances has changed to 12 month Expected Credit Losses (12mECL) measurement during the period | December 31, 2018 Post modification Pre-modification Gross carrying amount Corresponding ECL Gross carrying amount Corresponding ECL MCh$ MCh$ MCh$ MCh$ Facilities that have cured since modification and are now measured using 12mECLs (Stage 1) 14,888 1,356 15,113 4,988 Facilities that reverted to (Stage 2/3) lifetime ECLs having once cured 1,515 540 1,512 206 |
Schedule of use of MAR | The use of MAR within year 2018 is illustrated below (LCCY = local currency; FCCY = foreign currency): MAR LCCY + FCCY MAR FCCY MMM$ MMUS$ 1 – 30 days 1 – 90 days 1 – 30 days 1 – 90 days Maximum 3,432 5,530 1,921 3,278 Minimum 1,893 3,653 476 1,691 Average 2,621 4,794 1,411 2,606 |
Schedule of use of Cross Currency Funding | The use of Cross Currency Funding within year 2018 is illustrated below: Cross Currency Funding MMUS$ Maximum 4,377 Minimum 2,384 Average 3,300 |
Schedule of financial ratios | As an example, the state of the following ratios along the year 2018 is illustrated below: Liquid Assets/ Liabilities>1y/ Deposits/ Net Funding <1y Assets >1y Loans Maximum 95 % 77 % 64 % Minimum 74 % 74 % 59 % Average 86 % 76 % 61 % |
Schedules for calculation of C46 regulatory information | Foreign Currency balance sheet items: 1‑30 days C46 index < 1 x Tier‑1 Capital All Currencies balance sheet items: 1‑30 days C46 index < 1 x Tier‑1 Capital All Currencies balance sheet items: 1‑90 days C46 index < 2 x Tier‑1 Capital The use of this index in year 2018 is illustrated below: Adjusted C46 All CCYs Adjusted C46 FCCY as part of Tier-1 Capital as part of Tier-1 Capital 1 – 30 days 1 – 90 days 1 – 30 days Maximum 0.65 0.90 0.37 Minimum 0.29 0.55 0.24 Average 0.44 0.74 0.31 Regulatory Limit 1.0 2.0 1.0 |
Schedule of the LCR and the NSFR | The state of the LCR and the NSFR along the year 2018 is illustrated below: LCR NSFR Maximum 1.09 1.02 Minimum 0.78 0.95 Average 0.91 0.99 Regulatory Limit 0.6 (*) N/A (*) This is the minimum level that banks must comply starting year 2019 and then is increased by 0.1 per year up to the maximum of 1 as of year 2023. |
Schedule of contractual maturity of financial liabilities | Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Liabilities as of December 31, 2017 Current accounts and other demand deposits 8,915,706 — — — — — 8,915,706 Transactions in the course of payment 29,871 — — — — — 29,871 Instruments sold under repurchase agreements and security lending 194,539 750 — — — — 195,289 Savings accounts and time deposits 5,097,833 2,509,694 2,555,579 21,536 311 219 10,185,172 Full delivery derivative transactions 172,323 136,729 1,166,598 937,050 1,582,890 531,309 4,526,899 Borrowings from financial institutions 260,272 242,515 613,159 73,852 — — 1,189,798 Other financial obligations 295 918 10,921 24,038 686 154 37,012 Debt instruments issued 47,375 165,359 728,035 1,279,275 1,500,632 3,931,034 7,651,710 Total (excluding non-delivery derivative transactions) 14,718,214 3,055,965 5,074,292 2,335,751 3,084,519 4,462,716 32,731,457 Non - delivery derivative transactions 112,011 100,247 1,141,610 816,847 325,199 1,115,676 3,611,590 Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Liabilities as of December 31, 2018 Current accounts and other demand deposits 9,584,488 — — — — — 9,584,488 Transactions in the course of payment 44,436 — — — — — 44,436 Instruments sold under repurchase agreements and security lending 292,231 1,440 5,137 — — — 298,808 Savings accounts and time deposits 5,344,294 1,981,221 3,152,103 373,398 619 132 10,851,767 Full delivery derivative transactions 351,496 190,643 648,870 582,628 536,506 592,303 2,902,446 Borrowings from financial institutions 97,661 268,795 946,950 183,206 — — 1,496,612 Other financial obligations 92,896 730 4,857 18,406 366 35 117,290 Debt instruments issued 101,707 267,665 724,724 1,410,766 1,899,529 4,303,542 8,707,933 Total (excluding non-delivery derivative transactions) 15,909,209 2,710,494 5,482,641 2,568,404 2,437,020 4,896,012 34,003,780 Non - delivery derivative transactions 297,613 604,200 1,028,798 712,286 593,431 1,209,282 4,445,610 |
Schedule of use of VaR | The use of VaR within year 2018 is illustrated below: Value-at-Risk 99% confidence level MMUS$ Maximum 1,401 Minimum 379 Average 783 |
Schedule of use of EaR | The use of EaR within year 2018 is illustrated below: 12-months Earnings-at-Risk 97.7% confidence level 3 months defeasance period MCh$ Maximum 33,197 Minimum 24,941 Average 26,738 |
Schedule of banking book interest rate exposure by contractual maturity | Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Assets as of December 31, 2017 Cash and due from banks 1,028,014 — — — — — 1,028,014 Transactions in the course of collection 223,360 — — — — — 223,360 Securities borrowed or purchased under agreements to resell 19,992 — — — — — 19,992 Derivative instruments under hedge-accounting treatment 30,328 146,775 225,883 335,756 51,087 539,283 1,329,112 Inter-banking loans 533,101 49,573 150,253 31,920 — — 764,847 Customer loans 4,669,573 2,595,012 5,636,496 5,619,230 3,089,002 8,591,253 30,200,566 Financial assets available-for-sale 9,134 37,851 950,199 222,522 216,058 169,144 1,604,908 Total assets 6,513,502 2,829,211 6,962,831 6,209,428 3,356,147 9,299,680 35,170,799 Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Assets as of December 31, 2018 Cash and due from banks 844,173 — — — — — 844,173 Transactions in the course of collection 151,701 — — — — — 151,701 Securities borrowed or purchased under agreements to resell 3,161 — — — — — 3,161 Derivative instruments under hedge-accounting treatment 20 140,631 253,266 176,330 229,092 717,331 1,516,670 Inter-banking loans 1,262,749 79,199 133,689 24,337 — — 1,499,974 Customer loans 2,305,334 2,311,297 5,784,455 8,402,372 3,923,096 9,721,138 32,447,692 Financial Assets at Fair Value through OCI 48,469 153,479 408,390 146,136 58,093 230,003 1,044,570 Total assets 4,615,607 2,684,606 6,579,800 8,749,175 4,210,281 10,668,472 37,507,941 Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Liabilities as of December 31, 2017 Current accounts and demand deposits 8,959,941 — — — — — 8,959,941 Transactions in the course of payment — — — — — — — Securities loaned or sold under repurchase agreements 10,267 — — — — — 10,267 Savings accounts and interest-bearing deposits 5,294,456 2,317,792 2,555,579 21,536 311 219 10,189,893 Derivative instruments under hedge-accounting treatment 352 3,968 286,519 452,960 75,237 600,507 1,419,543 Inter-banking borrowings 506,703 553,663 129,431 — — — 1,189,797 Long-term debt (*) 158,085 266,895 727,798 1,217,226 1,349,337 3,930,440 7,649,781 Other liabilities 146,726 918 10,921 24,038 686 154 183,443 Total liabilities 15,076,530 3,143,236 3,710,248 1,715,760 1,425,571 4,531,320 29,602,665 Between 1 Up to 1 and 3 Between 3 and Between 1 Between 3 More than 5 month months 12 months and 3 years and 5 years years Total MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ Liabilities as of December 31, 2018 Current accounts and demand deposits 9,622,073 — — — — — 9,622,073 Transactions in the course of payment — — — — — — — Securities loaned or sold under repurchase agreements 6,963 — — — — — 6,963 Savings accounts and interest-bearing deposits 5,273,096 1,981,221 3,152,103 373,398 619 71,330 10,851,767 Derivative instruments under hedge-accounting treatment 115 144,525 243,151 187,522 222,201 715,536 1,513,050 Inter-banking borrowings 97,661 268,795 946,950 183,206 — — 1,496,612 Long-term debt (*) 101,707 267,665 724,724 1,410,766 1,899,529 4,303,542 8,707,933 Other liabilities 92,896 730 4,857 18,406 366 35 117,290 Total liabilities 15,194,511 2,662,936 5,071,785 2,173,298 2,122,715 5,090,443 32,315,688 (*) Amounts shown here are different from those reported in the liabilities report which is part of the liquidity analysis, due to differences in the treatment of mortgage bonds issued by the Bank in both reports. |
Schedule of Adverse scenario market factors fluctuations | CLP CLP CLF CLF USD Offshore 3m Spread USD On/Off Derivatives Bonds Derivatives Bonds Derivatives Derivatives (bps) (bps) (bps) (bps) (bps) (bps) < 1 year 4 20 (26) (10) 7 301 > 1 year 7 19 (6) (18) 5 34 bps = basis points |
Schedule of Potential Profit and Loss Impact on Trading Book | Most Adverse Stress Scenario P&L Impact Trading Book (MCh$) CLP Interest Rate/Swap Yield (683) Derivatives 54 Debt instruments (737) CLF Interest Rate/Swap Yield 58 Derivatives 84 Debt instruments (26) Interest rate USD, EUR, JPY, etc. offshore 145 Domestic/offshore interest rate spread USD, EUR, JPY (12,762) Total Interest rates/Swap Yields (13,242) Total FX 13 Total FX Options (13) Total (13,242) |
Schedule of NRFF impact on accrual book for next 12-months | The impact of such fluctuations in the Accrual portfolio for the next 12 months as of December 31, 2018, which is not necessarily a gain/loss but greater/lower net revenue from funds (resulting net interest rate generation), is illustrated below: 12‑Months NRFF(*) Impact Accrual Book (MCh$) Impact due to inter-banking yield curve shock (122,334) Impact due to spreads shocks (7,320) Higher / (Lower) NRFF (129,654) (*) Net revenues from funds |
Schedule of risk weighted assets, Basic Capital ratio and Regulatory Capital ratio | Consolidated assets Risk-weighted assets 2017 2018 2017 2018 MCh$ MCh$ MCh$ MCh$ Balance sheet assets (net of provisions) Cash and due from banks 1,057,393 880,081 5,699 13,084 Transactions in the course of collection 255,968 289,194 95,210 186,536 Financial Assets held-for-trading 1,538,578 1,745,366 148,641 134,412 Cash collateral on securities borrowed and reverse repurchase agreements 91,641 97,289 91,641 97,289 Derivative instruments (*) 1,469,083 1,310,262 927,837 916,798 Loans and advances to banks 760,021 1,494,384 312,806 313,524 Loans to customers, net 24,955,692 27,341,254 21,908,281 24,102,808 Financial assets available-for-sale 1,526,315 — 325,209 — Financial assets at fair value through OCI — 1,053,191 — 356,568 Investments in other companies 35,771 42,252 38,041 44,561 Intangible assets 72,455 85,471 39,045 52,061 Property and equipment 216,259 215,872 216,259 215,872 Investment properties 14,306 13,938 — — Current tax assets 23,032 677 2,303 68 Deferred tax assets 161,265 192,840 26,740 27,792 Other assets 604,800 651,691 547,974 673,380 Subtotal 32,782,579 35,413,762 24,685,686 27,134,753 Off-balance-sheet assets Contingent loans 3,972,260 4,266,821 2,382,653 2,559,197 Total 39,680,583 27,068,339 29,693,950 (*) Financial derivative contracts are presented as an equivalent credit risk for the purposes of calculating consolidated assets. The amounts and ratios determined for the limit of basic capital and effective equity as of December 2017 and 2018, are: As of December 31, 2017 2018 MCh$ MCh$ Basic capital (*) (**) 3,105,714 3,304,152 Effective equity 3,934,727 4,129,999 Total consolidated assets (**) 37,017,702 39,989,595 Total consolidated assets weighted by credit risk 27,068,339 29,693,950 (*) The Basic Capital corresponds to the equity of the owners of the Bank in the Consolidated Statement of Financial Position. (**) The total consolidated assets is in accordance with Chilean Generally Accepted Accounting Principles as issued by the Chilean Superintendency of Banks and Financial Institutions (“SBIF”). As a result, is not directly comparable with this Consolidated Statement of Financial Position. These ratios as of December 31, 2017 and 2018 were: Ratio As of December 31, 2017 2018 % % Basic capital / consolidated assets 8.39 8.26 Effective equity / consolidated assets weighted by risk 14.54 13.91 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Banchile Administradora General de Fondos S.A | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.98% | 99.98% |
Percentage of interest owned by subsidiaries in group | 0.02% | 0.02% |
Consolidated controlling interest in subsidiaries | 100.00% | 100.00% |
Banchile Asesoria Financiera S.A | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.96% | 99.96% |
Consolidated controlling interest in subsidiaries | 99.96% | 99.96% |
Banchile Corredores de Seguros Ltda. | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.83% | 99.83% |
Percentage of interest owned by subsidiaries in group | 0.17% | 0.17% |
Consolidated controlling interest in subsidiaries | 100.00% | 100.00% |
Banchile Corredores de Bolsa S.A | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.70% | 99.70% |
Percentage of interest owned by subsidiaries in group | 0.30% | 0.30% |
Consolidated controlling interest in subsidiaries | 100.00% | 100.00% |
Banchile Securitizadora S.A. | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.01% | 99.01% |
Percentage of interest owned by subsidiaries in group | 0.99% | 0.99% |
Consolidated controlling interest in subsidiaries | 100.00% | 100.00% |
Socofin S.A | ||
Significant investments in subsidiaries | ||
Percentage of interest owned by parent | 99.00% | 99.00% |
Percentage of interest owned by subsidiaries in group | 1.00% | 1.00% |
Consolidated controlling interest in subsidiaries | 100.00% | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Loans (Details) | 12 Months Ended |
Dec. 31, 2018item | |
Loans written off | |
Threshold nonperforming period for substandard loans | 30 days |
Minimum number of installments overdue to be classified as non-compliant | 1 |
Threshold past due period for non-complying loans | 90 days |
Consumer loans | |
Loans written off | |
Maximum period allowed to written off loans | 6 months |
Other transactions - unsecured | |
Loans written off | |
Maximum period allowed to written off loans | 24 months |
Commercial loans - secured | |
Loans written off | |
Maximum period allowed to written off loans | 36 months |
Residential mortgage loans | |
Loans written off | |
Maximum period allowed to written off loans | 48 months |
Consumer leases | |
Loans written off | |
Maximum period allowed to written off loans | 6 months |
Other non-real estate lease transactions | |
Loans written off | |
Maximum period allowed to written off loans | 12 months |
Real estate leases (commercial or residential) | |
Loans written off | |
Maximum period allowed to written off loans | 36 months |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated useful life of assets (Details) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Buildings | ||
Property and Equipment | ||
Estimated useful life | 50 years | |
Installations (in general) | ||
Property and Equipment | ||
Estimated useful life | 10 years | |
Equipment | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Office furniture | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Maximum | Software or computer programs | ||
Property and Equipment | ||
Estimated useful life | 6 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Transactions in foreign currency & employee benefits (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / $$ / ¥$ / € | Dec. 31, 2018CLP ($)$ / $$ / ¥$ / € | Dec. 31, 2017CLP ($)$ / $$ / ¥$ / € | Dec. 31, 2016CLP ($) | |
Disclosure of detailed information about financial instruments | ||||
Gain on net foreign exchange income | $ 3,894 | $ 2,701 | $ 104,875 | $ 12,405 |
USD | ||||
Disclosure of detailed information about financial instruments | ||||
Foreign exchange rate | $ / $ | 693.60 | 693.60 | 615.43 | |
JPY | ||||
Disclosure of detailed information about financial instruments | ||||
Foreign exchange rate | $ / ¥ | 6.29 | 6.29 | 5.46 | |
EUR | ||||
Disclosure of detailed information about financial instruments | ||||
Foreign exchange rate | $ / € | 793.96 | 793.96 | 739.32 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Employee Benefits (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit plan disclosures | ||
Threshold retiring period for specified employees to whom payments are made | 30 years | |
Staff Severance Indemnities Plan | ||
Defined benefit plan disclosures | ||
Discount rate for long term | 4.25% | 4.53% |
Past service costs | $ 0 |
Transition disclosures - Reclas
Transition disclosures - Reclassification and remeasurement of carrying amounts and recognition of ECL upon adoption of IRFS 9 (Details) - CLP ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | $ 32,561,437 | ||
Assets, Reclassification on Transition to IFRS 9 | $ 78,069 | ||
Assets, Remeasurement on Transition to IFRS 9 | (51,125) | ||
Assets, Carrying Amount IFRS 9 | 32,510,312 | ||
Liabilities, Carrying Amount IAS 39 | 32,561,437 | ||
Liabilities, Remeasurement on Transition to IFRS 9 | (51,125) | ||
Liabilities, Carrying Amount IFRS 9 | 32,510,312 | ||
Transition impact upon adoption of the ECL requirements of IFRS 9 | 85,926 | ||
Reclassification of an unrealized loss in other comprehensive income to the retained earnings, before tax | 5,820 | ||
Taxation benefit on reclassification of unrealized loss from comprehensive income to the retained earnings | 1,571 | ||
Total change in equity due to adopting of IFRS 9, before tax | 91,746 | ||
TOTAL EQUITY | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 3,545,348 | ||
Liabilities, Remeasurement on Transition to IFRS 9 | (62,726) | ||
Liabilities, Carrying Amount IFRS 9 | 3,482,622 | ||
Paid-in capital | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 2,271,401 | ||
Liabilities, Carrying Amount IFRS 9 | 2,271,401 | ||
Reserves | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 809,557 | ||
Liabilities, Carrying Amount IFRS 9 | 809,557 | ||
Other comprehensive income | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 127 | ||
Liabilities, Reclassification on Transition to IFRS 9 | 4,249 | ||
Liabilities, Carrying Amount IFRS 9 | 4,376 | ||
Retained earnings from previous periods | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 64,986 | ||
Liabilities, Reclassification on Transition to IFRS 9 | (4,249) | ||
Liabilities, Remeasurement on Transition to IFRS 9 | (62,726) | ||
Liabilities, Carrying Amount IFRS 9 | (1,989) | ||
Income for the year | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 572,080 | ||
Liabilities, Carrying Amount IFRS 9 | 572,080 | ||
Provisions for minimum dividend | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | (172,804) | ||
Liabilities, Carrying Amount IFRS 9 | (172,804) | ||
Non-controlling interest | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 1 | ||
Liabilities, Carrying Amount IFRS 9 | 1 | ||
TOTAL LIABILITIES | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 29,016,089 | ||
Liabilities, Remeasurement on Transition to IFRS 9 | 11,601 | ||
Liabilities, Carrying Amount IFRS 9 | 29,027,690 | ||
Current tax liabilities | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 3,453 | ||
Liabilities, Carrying Amount IFRS 9 | 3,453 | ||
Provisions | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 194,537 | ||
Liabilities, Reclassification on Transition to IFRS 9 | 11,374 | ||
Liabilities, Remeasurement on Transition to IFRS 9 | 11,601 | ||
Liabilities, Carrying Amount IFRS 9 | 217,512 | ||
Transition impact upon adoption of the ECL requirements of IFRS 9 | 11,601 | ||
Employee benefits | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 86,628 | ||
Liabilities, Carrying Amount IFRS 9 | 86,628 | ||
Other liabilities | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 308,563 | ||
Liabilities, Reclassification on Transition to IFRS 9 | (11,374) | ||
Liabilities, Carrying Amount IFRS 9 | 297,189 | ||
Financial assets held-for-trading | |||
Adoption of new standards | |||
Financial assets available-for-sale, Reclassification on Transition to IFRS 9 | 78,069 | ||
Loans and advances to banks | |||
Adoption of new standards | |||
Assets, Remeasurement on Transition to IFRS 9 | (508) | ||
Transition impact upon adoption of the ECL requirements of IFRS 9 | 508 | ||
Loans to customers | |||
Adoption of new standards | |||
Assets, Remeasurement on Transition to IFRS 9 | (73,817) | ||
Transition impact upon adoption of the ECL requirements of IFRS 9 | $ 73,817 | ||
Financial assets available-for-sale | |||
Adoption of new standards | |||
Financial assets available-for-sale, Reclassification on Transition to IFRS 9 | (1,526,315) | ||
Financial assets available-for-sale, Equity | |||
Adoption of new standards | |||
Financial assets available-for-sale, Reclassification on Transition to IFRS 9 | 10,252 | ||
Financial assets available-for-sale, Debt | |||
Adoption of new standards | |||
Financial assets available-for-sale, Reclassification on Transition to IFRS 9 | 1,516,063 | ||
FVOCI | |||
Adoption of new standards | |||
Other assets, Reclassification on Transition to IFRS 9 | 1,526,315 | ||
Financial assets at fair value through OCI, Equity | |||
Adoption of new standards | |||
Assets, Reclassification on Transition to IFRS 9 | (10,252) | ||
Financial assets at fair value through OCI, Debt | |||
Adoption of new standards | |||
Assets, Reclassification on Transition to IFRS 9 | (1,516,063) | ||
Intangible assets | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 72,455 | ||
Assets, Carrying Amount IFRS 9 | 72,455 | ||
Property and equipment | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 216,259 | ||
Assets, Carrying Amount IFRS 9 | 216,259 | ||
Investments properties | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 14,306 | ||
Assets, Carrying Amount IFRS 9 | 14,306 | ||
Current tax assets | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 23,032 | ||
Assets, Carrying Amount IFRS 9 | 23,032 | ||
Deferred tax assets, net | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 161,265 | ||
Assets, Remeasurement on Transition to IFRS 9 | 23,200 | ||
Assets, Carrying Amount IFRS 9 | 184,465 | ||
Other assets | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 604,800 | ||
Other assets, Reclassification on Transition to IFRS 9 | 78,069 | ||
Assets, Carrying Amount IFRS 9 | 526,731 | ||
AC | Current accounts and other demand deposits | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 8,915,706 | ||
Liabilities, Carrying Amount IFRS 9 | 8,915,706 | ||
AC | Transactions in the course of payment | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 29,871 | ||
Liabilities, Carrying Amount IFRS 9 | 29,871 | ||
AC | Cash collateral on securities lent and reverse repurchase agreements | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 195,392 | ||
Liabilities, Carrying Amount IFRS 9 | 195,392 | ||
AC | Saving accounts and time deposits | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 10,067,778 | ||
Liabilities, Carrying Amount IFRS 9 | 10,067,778 | ||
AC | Borrowings from financial institutions | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 1,195,028 | ||
Liabilities, Carrying Amount IFRS 9 | 1,195,028 | ||
AC | Debt issued | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 6,488,975 | ||
Liabilities, Carrying Amount IFRS 9 | 6,488,975 | ||
AC | Other financial obligations | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 137,163 | ||
Liabilities, Carrying Amount IFRS 9 | 137,163 | ||
FVPL | Derivate instruments | |||
Adoption of new standards | |||
Liabilities, Carrying Amount IAS 39 | 1,392,995 | ||
Liabilities, Carrying Amount IFRS 9 | 1,392,995 | ||
L&R | Cash and due from banks | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 1,057,393 | ||
L&R | Transactions in the course of collection | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 255,968 | ||
L&R | Cash collateral on securities borrowed and reverse repurchase agreements | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 91,641 | ||
L&R | Loans and advances to banks | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 760,021 | ||
L&R | Loans to customers | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 24,955,692 | ||
L&R | Financial assets available-for-sale | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 1,526,315 | ||
AC | Cash and due from banks | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 1,057,393 | ||
AC | Transactions in the course of collection | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 255,968 | ||
AC | Cash collateral on securities borrowed and reverse repurchase agreements | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 91,641 | ||
AC | Loans and advances to banks | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 759,513 | ||
AC | Loans to customers | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 24,881,875 | ||
AC | Investments in other companies | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 35,771 | ||
FVPL | Financial assets held-for-trading | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | 1,538,578 | ||
Assets, Carrying Amount IFRS 9 | 1,616,647 | ||
FVPL | Derivative instruments | |||
Adoption of new standards | |||
Assets, Carrying Amount IAS 39 | $ 1,247,941 | ||
Assets, Carrying Amount IFRS 9 | 1,247,941 | ||
FVOCI | FVOCI | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | 1,526,315 | ||
FVOCI | Investments in other companies | |||
Adoption of new standards | |||
Assets, Carrying Amount IFRS 9 | $ 35,771 |
Transition disclosures - IFRS 9
Transition disclosures - IFRS 9 impact on other comprehensive income and retained earnings (Details) - CLP ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
Adoption of new standards | ||
Total change in equity due to adopting IFRS 9 | $ (62,726) | $ (62,726) |
Financial assets at fair value through OCI, Equity | ||
Adoption of new standards | ||
Closing balance under IAS 39 | 5,820 | 9,521 |
Recognition of ECL under IFRS 9 for debt financial assets at FVOCI | (1,571) | |
Deferred tax in relation to the above | 13,770 | |
Retained earnings from previous periods | ||
Adoption of new standards | ||
Closing balance under IAS 39 | $ 464,262 | |
Recognition of IFRS 9 ECLs for financial assets at FVOCI | 24,771 | |
Deferred tax in relation to the above | $ 397,287 |
Transition disclosures - Reconc
Transition disclosures - Reconciliation of allowances and provisions on adoption of IFRS 9 (Details) - CLP ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
Adoption of new standards | ||
Loss Allowance under IAS 39 | $ (496,085) | |
Remeasurement Upon Transition to IFRS 9 | $ (74,325) | |
Loss Allowance under IFRS 9 | (570,410) | |
Provisions under IAS 39 | (11,374) | |
Remeasurement Upon Transition to IFRS 9 | (11,601) | |
Provisions under IFRS 9 | (22,975) | |
Total Allowances / Provisions under IAS 39 | (507,459) | |
Remeasurement Upon Transition to IFRS 9 | (91,746) | |
Total Allowances / Provisions under IFRS 9 | (599,205) | |
Financial guarantees | ||
Adoption of new standards | ||
Provisions under IAS 39 | (11,205) | |
Remeasurement Upon Transition to IFRS 9 | 7,273 | |
Provisions under IFRS 9 | (3,932) | |
Letter of credit for customers | ||
Adoption of new standards | ||
Provisions under IAS 39 | (169) | |
Remeasurement Upon Transition to IFRS 9 | 97 | |
Provisions under IFRS 9 | (72) | |
Undrawn credit lines | ||
Adoption of new standards | ||
Remeasurement Upon Transition to IFRS 9 | (18,971) | |
Provisions under IFRS 9 | (18,971) | |
Due from banks | ||
Adoption of new standards | ||
Loss Allowance under IAS 39 | (264) | |
Remeasurement Upon Transition to IFRS 9 | (508) | |
Loss Allowance under IFRS 9 | (772) | |
Commercial loans | ||
Adoption of new standards | ||
Loss Allowance under IAS 39 | (221,229) | |
Remeasurement Upon Transition to IFRS 9 | (181) | |
Loss Allowance under IFRS 9 | (221,410) | |
Mortgage loans | ||
Adoption of new standards | ||
Loss Allowance under IAS 39 | (32,015) | |
Remeasurement Upon Transition to IFRS 9 | (1,762) | |
Loss Allowance under IFRS 9 | (33,777) | |
Consumer loans | ||
Adoption of new standards | ||
Loss Allowance under IAS 39 | $ (242,577) | |
Remeasurement Upon Transition to IFRS 9 | (71,874) | |
Loss Allowance under IFRS 9 | (314,451) | |
Debt instruments at fair value through OCI | ||
Adoption of new standards | ||
Remeasurement Upon Transition to IFRS 9 | (5,820) | |
Allowances under IFRS 9 | $ (5,820) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018CLF ( )item | Dec. 31, 2018USD ($)item | Dec. 31, 2018CLP ($)item | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2018CLP ($) | |
Segment Reporting | ||||||
Number of business segments | item | 4 | 4 | 4 | |||
Net interest income | $ 1,904,523 | $ 1,320,977 | $ 1,234,695 | $ 1,226,733 | ||
Net fees and commissions income | 518,966 | 359,955 | 347,674 | 321,271 | ||
Other operating income | 165,138 | 105,173 | 169,555 | |||
Total operating revenues | 2,661,577 | 1,846,070 | 1,687,542 | 1,717,559 | ||
Provisions for loan losses | (362,346) | (251,323) | (221,255) | (259,263) | ||
Depreciation and amortization | (54,326) | (37,681) | (37,536) | (35,575) | ||
Other operating expenses | (800,475) | (746,820) | (751,472) | |||
Income attributable to associates | 9,820 | 6,811 | 5,511 | 4,014 | ||
Income before income taxes | 1,100,637 | 763,402 | 687,442 | 675,263 | ||
Income taxes | (230,346) | (159,768) | (115,361) | (100,212) | ||
NET INCOME FOR THE YEAR | 870,291 | 603,634 | 572,081 | 575,051 | ||
Assets before taxes | 32,377,140 | 31,173,724 | $ 35,423,930 | |||
Current and deferred taxes (assets) | 184,297 | 183,580 | 193,517 | |||
TOTAL ASSETS | 51,351,567 | 32,561,437 | 31,357,304 | 35,617,447 | ||
Liabilities before taxes | 29,012,636 | 28,049,630 | 31,922,807 | |||
Current and deferred taxes (liabilities) | 3,453 | 20,924 | ||||
TOTAL LIABILITIES | $ 46,054,976 | 29,016,089 | 28,049,630 | 31,943,731 | ||
Operating segments | ||||||
Segment Reporting | ||||||
Net interest income | 1,316,213 | 1,227,465 | 1,220,368 | |||
Net fees and commissions income | 372,123 | 359,173 | 331,641 | |||
Other operating income | 199,936 | 137,019 | 195,134 | |||
Total operating revenues | 1,888,272 | 1,723,657 | 1,747,143 | |||
Provisions for loan losses | (281,410) | (234,982) | (309,735) | |||
Depreciation and amortization | (37,681) | (35,251) | (33,289) | |||
Other operating expenses | (825,032) | (768,434) | (767,343) | |||
Income attributable to associates | 7,255 | 6,057 | 4,513 | |||
Income before income taxes | 751,404 | 691,047 | 641,289 | |||
Income taxes | (156,531) | (115,034) | (89,040) | |||
NET INCOME FOR THE YEAR | 594,873 | 576,013 | 552,249 | |||
Assets before taxes | 32,765,893 | 31,382,379 | 36,036,475 | |||
Current and deferred taxes (assets) | 290,432 | 288,370 | 278,599 | |||
TOTAL ASSETS | 33,056,325 | 31,670,749 | 36,315,074 | |||
Liabilities before taxes | 29,947,157 | 28,783,338 | 32,989,997 | |||
Current and deferred taxes (liabilities) | 3,453 | 20,924 | ||||
TOTAL LIABILITIES | 29,950,610 | 28,783,338 | 33,010,921 | |||
Material reconciling items | ||||||
Segment Reporting | ||||||
Net interest income | 4,764 | 7,230 | 6,365 | |||
Net fees and commissions income | (12,168) | (11,499) | (10,370) | |||
Other operating income | (34,798) | (31,846) | (25,579) | |||
Total operating revenues | (42,202) | (36,115) | (29,584) | |||
Provisions for loan losses | 30,087 | 13,727 | 50,472 | |||
Depreciation and amortization | (2,285) | (2,286) | ||||
Other operating expenses | 24,557 | 21,614 | 15,871 | |||
Income attributable to associates | (444) | (546) | (499) | |||
Income before income taxes | 11,998 | (3,605) | 33,974 | |||
Income taxes | (3,237) | (327) | (11,172) | |||
NET INCOME FOR THE YEAR | 8,761 | (3,932) | 22,802 | |||
Assets before taxes | (388,753) | (208,655) | (612,545) | |||
Current and deferred taxes (assets) | (106,135) | (104,790) | (85,082) | |||
TOTAL ASSETS | (494,888) | (313,445) | (697,627) | |||
Liabilities before taxes | (934,521) | (733,708) | (1,067,190) | |||
TOTAL LIABILITIES | (934,521) | (733,708) | (1,067,190) | |||
Elimination adjustments | ||||||
Segment Reporting | ||||||
Net interest income | (14,989) | (14,387) | (12,349) | |||
Other operating expenses | 14,989 | 14,387 | 12,349 | |||
TOTAL ASSETS | (232,137) | (137,201) | (388,615) | |||
TOTAL LIABILITIES | (232,137) | (137,201) | (388,615) | |||
IFRS adjustments | ||||||
Segment Reporting | ||||||
Provisions for loan losses | 30,087 | 13,727 | 50,472 | |||
Depreciation and amortization | (2,285) | (2,286) | ||||
Income taxes | (3,237) | (327) | (11,172) | |||
Reclassification of interest on repurchase agreements and suspended interest recognition | (27,213) | (21,728) | (17,235) | |||
Reversal of write-offs of assets received in lieu of payments | (9,568) | (7,227) | 3,522 | |||
Increase (decrease) in assets from deviating allowances for loan losses, acquisitions and deferred taxes | (262,751) | (176,244) | (309,012) | |||
Increase (decrease) in liabilities from provision for minimum dividends and differing allowances for loan losses | (702,384) | (596,507) | (678,575) | |||
Retail | Operating segments | ||||||
Segment Reporting | ||||||
Net interest income | 969,910 | 930,539 | 873,669 | |||
Net fees and commissions income | 184,545 | 184,049 | 170,529 | |||
Other operating income | 43,290 | 19,095 | 93,135 | |||
Total operating revenues | 1,197,745 | 1,133,683 | 1,137,333 | |||
Provisions for loan losses | (287,165) | (256,262) | (301,491) | |||
Depreciation and amortization | (29,571) | (27,669) | (25,229) | |||
Other operating expenses | (561,512) | (507,771) | (504,041) | |||
Income attributable to associates | 5,450 | 4,372 | 3,078 | |||
Income before income taxes | 324,947 | 346,353 | 309,650 | |||
Assets before taxes | 16,099,926 | 15,198,634 | 16,425,068 | |||
Liabilities before taxes | 10,380,250 | 10,234,712 | 10,369,534 | |||
Retail | Maximum | ||||||
Segment Reporting | ||||||
Annual sales of customers considered for business segment | | 70,000 | |||||
Wholesale | Operating segments | ||||||
Segment Reporting | ||||||
Net interest income | 357,712 | 322,431 | 346,829 | |||
Net fees and commissions income | 45,905 | 43,443 | 42,202 | |||
Other operating income | 59,376 | 34,712 | 33,322 | |||
Total operating revenues | 462,993 | 400,586 | 422,353 | |||
Provisions for loan losses | 5,637 | 21,415 | (8,243) | |||
Depreciation and amortization | (5,008) | (4,547) | (4,912) | |||
Other operating expenses | (152,921) | (153,360) | (152,859) | |||
Income attributable to associates | 1,224 | 1,026 | 914 | |||
Income before income taxes | 311,925 | 265,120 | 257,253 | |||
Assets before taxes | 10,558,278 | 11,526,685 | 10,592,117 | |||
Liabilities before taxes | 10,272,607 | 10,277,326 | 9,873,018 | |||
Wholesale | Minimum | ||||||
Segment Reporting | ||||||
Annual sales of customers considered for business segment | | 70,000 | |||||
Treasury and money market operations | Operating segments | ||||||
Segment Reporting | ||||||
Net interest income | (2,414) | (21,169) | 4,207 | |||
Net fees and commissions income | (4,031) | (4,306) | (2,473) | |||
Other operating income | 63,929 | 56,328 | 44,754 | |||
Total operating revenues | 57,484 | 30,853 | 46,488 | |||
Depreciation and amortization | (91) | (141) | (172) | |||
Other operating expenses | (4,693) | (5,022) | (5,596) | |||
Income attributable to associates | 119 | 108 | 79 | |||
Income before income taxes | 52,819 | 25,798 | 40,799 | |||
Assets before taxes | 5,469,829 | 4,121,333 | 8,093,850 | |||
Liabilities before taxes | 8,815,056 | 7,880,847 | 11,982,709 | |||
Subsidiaries | Operating segments | ||||||
Segment Reporting | ||||||
Net interest income | (8,995) | (4,336) | (4,337) | |||
Net fees and commissions income | 145,704 | 135,987 | 121,383 | |||
Other operating income | 33,341 | 26,884 | 23,923 | |||
Total operating revenues | 170,050 | 158,535 | 140,969 | |||
Provisions for loan losses | 118 | (135) | (1) | |||
Depreciation and amortization | (3,011) | (2,894) | (2,976) | |||
Other operating expenses | (105,906) | (102,281) | (104,847) | |||
Income attributable to associates | 462 | 551 | 442 | |||
Income before income taxes | $ 61,713 | 53,776 | 33,587 | |||
Assets before taxes | 637,860 | 535,727 | 925,440 | |||
Liabilities before taxes | $ 479,244 | $ 390,453 | $ 764,736 |
Cash and Cash Equivalents - Rec
Cash and Cash Equivalents - Reconciliation to the statement of cash flows (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) |
Cash and due from banks | ||||||
Cash | $ 624,862 | $ 522,869 | ||||
Current account with the Central Bank | 121,807 | 162,421 | ||||
Deposits in other domestic banks | 26,698 | 9,922 | ||||
Deposits abroad | 106,714 | 362,181 | ||||
Subtotal - Cash and due from banks | $ 1,268,860 | 880,081 | 1,057,393 | |||
Transactions in the course of collection | 244,758 | 226,097 | ||||
Highly liquid financial instruments (shown in other assets) | 83,807 | 78,069 | ||||
Repurchase agreements | 72,632 | 76,839 | ||||
Total cash and cash equivalents | $ 1,847,288 | 1,281,278 | $ 2,073,815 | 1,438,398 | $ 1,655,210 | $ 1,709,877 |
Highly Liquid Financial Instruments | ||||||
Financial Assets Held-for-trading | 83,807 | 78,069 | ||||
Total | $ 83,807 | $ 78,069 |
Cash and Cash Equivalents - Tra
Cash and Cash Equivalents - Transactions in the course of collection (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Assets | |||
Documents drawn on other banks (clearing) | $ 210,743 | $ 204,624 | |
Funds receivable | 78,451 | 51,344 | |
Subtotal transactions in the course of collection | $ 416,946 | 289,194 | 255,968 |
Liabilities | |||
Funds payable | (44,436) | (29,871) | |
Subtotal transactions in the course of payment | $ (64,066) | (44,436) | (29,871) |
Total transactions in the course of collection | $ 244,758 | $ 226,097 |
Financial Assets Held-for-Tra_3
Financial Assets Held-for-Trading (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | |
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | $ 1,538,578 | $ 2,516,387 | $ 1,745,366 | |
Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 1,538,578 | 1,745,366 | ||
Central Bank bonds | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 400,368 | 24,906 | ||
Central Bank promissory notes | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 662,190 | 1,410,080 | ||
Other instruments | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 254,606 | 88,486 | ||
Other instruments | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | Comder Contraparte Central S.A | ||||
Financial Assets Held-for-Trading | ||||
Amount of other financial instruments maintained as collateral guaranteeing derivative contracts | $ 34,456 | 34,585 | ||
Other instruments | Other instruments issued in Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 715 | 1,663 | ||
Other instruments | Instruments issued by foreign institutions | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 322 | 4,446 | ||
Other instruments with repurchase agreements | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets at fair value through profit or loss, classified as held for trading | $ 5,096 | 115,749 | ||
Repurchase agreement expiration period | 2 days | 7 days | ||
Other instruments with repurchase agreements | Other instruments issued in Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets at fair value through profit or loss, classified as held for trading | $ 158,731 | 99,268 | ||
Repurchase agreement expiration period | 10 days | 7 days | ||
Bonds from other domestic companies | Other instruments issued in Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 7,532 | |||
Bonds from domestic banks | Other instruments issued in Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | $ 2,070 | 20,186 | ||
Deposits in domestic banks | Other instruments issued in Chile | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | 218,307 | 100,226 | ||
Funds managed by related companies | Mutual fund investments | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial assets held-for-trading | $ 87,841 | |||
Mortgage financial bonds | Financial assets held-for-trading | ||||
Financial Assets Held-for-Trading | ||||
Financial asset classified as held for trading which is presented as a reduction in debt issued | $ 11,397 | $ 15,032 |
Cash collateral on securities_3
Cash collateral on securities and reverse repurchase agreements- receivables and security borrowings (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | $ 140,267 | $ 97,289 | $ 91,641 |
Fair value of securities received by bank as collateral | 95,316 | 95,665 | |
Up to 1 month | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 73,496 | 67,344 | |
Between 1 and 3 months | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 16,918 | 19,207 | |
Between 3 and 12 months | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 6,875 | 5,090 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 742 | 6,690 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank bonds | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 4,114 | ||
Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank promissory notes | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 742 | ||
Instruments issued by the Chilean Governments and Central Bank of Chile | Other instruments issued by the Chilean Government and Central Bank | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 2,576 | ||
Instruments issued by the Chilean Governments and Central Bank of Chile | Up to 1 month | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 742 | 6,690 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Up to 1 month | Central Bank bonds | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 4,114 | ||
Instruments issued by the Chilean Governments and Central Bank of Chile | Up to 1 month | Central Bank promissory notes | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 742 | ||
Instruments issued by the Chilean Governments and Central Bank of Chile | Up to 1 month | Other instruments issued by the Chilean Government and Central Bank | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 2,576 | ||
Other instruments issued in Chile | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 96,547 | 84,951 | |
Other instruments issued in Chile | Bonds from domestic banks | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 367 | ||
Other instruments issued in Chile | Deposits in domestic banks | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 2,053 | 13,297 | |
Other instruments issued in Chile | Other instruments | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 94,127 | 71,654 | |
Other instruments issued in Chile | Up to 1 month | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 72,754 | 60,654 | |
Other instruments issued in Chile | Up to 1 month | Bonds from domestic banks | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 367 | ||
Other instruments issued in Chile | Up to 1 month | Deposits in domestic banks | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 2,053 | 13,297 | |
Other instruments issued in Chile | Up to 1 month | Other instruments | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 70,334 | 47,357 | |
Other instruments issued in Chile | Between 1 and 3 months | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 16,918 | 19,207 | |
Other instruments issued in Chile | Between 1 and 3 months | Other instruments | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 16,918 | 19,207 | |
Other instruments issued in Chile | Between 3 and 12 months | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | 6,875 | 5,090 | |
Other instruments issued in Chile | Between 3 and 12 months | Other instruments | |||
Receivables from repurchase agreements and security borrowing | |||
Receivables from repurchase agreements and security borrowing | $ 6,875 | $ 5,090 |
Cash collateral on securities_4
Cash collateral on securities and reverse repurchase agreements- Selling financial instruments and repurchasing (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | $ 438,034 | $ 303,820 | $ 195,392 |
Carrying amount of securities lent and of Payables from Repurchase Agreements and Security Lending | 298,708 | 195,437 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 130,197 | 10,264 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank bonds | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 130,197 | 5,169 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank promissory notes | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 5,095 | ||
Other instruments issued in Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 173,623 | 185,128 | |
Other instruments issued in Chile | Bonds from domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 2,013 | ||
Other instruments issued in Chile | Deposits in domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 168,825 | 171,121 | |
Other instruments issued in Chile | Other instruments | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 4,798 | 11,994 | |
Up to 1 month | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 297,162 | 138,630 | |
Up to 1 month | Instruments issued by the Chilean Governments and Central Bank of Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 130,197 | 10,264 | |
Up to 1 month | Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank bonds | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 130,197 | 5,169 | |
Up to 1 month | Instruments issued by the Chilean Governments and Central Bank of Chile | Central Bank promissory notes | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 5,095 | ||
Up to 1 month | Other instruments issued in Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 166,965 | 128,366 | |
Up to 1 month | Other instruments issued in Chile | Bonds from domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 2,013 | ||
Up to 1 month | Other instruments issued in Chile | Deposits in domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 162,167 | 114,359 | |
Up to 1 month | Other instruments issued in Chile | Other instruments | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 4,798 | 11,994 | |
Between 1 and 3 months | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 1,448 | ||
Between 1 and 3 months | Other instruments issued in Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 1,448 | ||
Between 1 and 3 months | Other instruments issued in Chile | Deposits in domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 1,448 | ||
Between 3 and 12 months | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 5,210 | 56,762 | |
Between 3 and 12 months | Other instruments issued in Chile | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | 5,210 | 56,762 | |
Between 3 and 12 months | Other instruments issued in Chile | Deposits in domestic banks | |||
Payables by selling financial instruments and security repurchase commitment | |||
Payables from repurchase agreements and security lending | $ 5,210 | $ 56,762 |
Derivative Instruments and Ac_3
Derivative Instruments and Accounting Hedges - Bank's Portfolio of Derivative Instruments (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Financial instrument disclosures | |||
Notional amount | $ 132,441 | $ 163,654 | |
Fair value assets | $ 2,182,738 | 1,513,947 | 1,247,941 |
Fair value liabilities | $ 2,203,336 | 1,528,234 | 1,392,995 |
Derivatives | |||
Financial instrument disclosures | |||
Notional amount - trading | 122,425,909 | 96,663,326 | |
Fair value assets - trading | 1,478,533 | 1,220,092 | |
Fair value liabilities - trading | 1,490,252 | 1,306,777 | |
Notional amount | 123,801,452 | 97,904,771 | |
Fair value assets | 1,513,947 | 1,247,941 | |
Fair value liabilities | 1,528,234 | 1,392,995 | |
Currency forward | |||
Financial instrument disclosures | |||
Notional amount - trading | 35,690,464 | 29,451,333 | |
Fair value assets - trading | 735,444 | 506,614 | |
Fair value liabilities - trading | 631,089 | 574,931 | |
Interest rate forward | |||
Financial instrument disclosures | |||
Notional amount - trading | 14,000 | ||
Fair value liabilities - trading | 206 | ||
Interest rate swap | |||
Financial instrument disclosures | |||
Notional amount - trading | 72,330,827 | 55,617,104 | |
Fair value assets - trading | 287,611 | 243,931 | |
Fair value liabilities - trading | 284,840 | 236,954 | |
Cross currency swap | |||
Financial instrument disclosures | |||
Notional amount - trading | 13,982,890 | 11,281,240 | |
Fair value assets - trading | 450,519 | 466,192 | |
Fair value liabilities - trading | 569,868 | 490,811 | |
Call Options | |||
Financial instrument disclosures | |||
Notional amount - trading | 229,175 | 153,776 | |
Fair value assets - trading | 4,839 | 514 | |
Fair value liabilities - trading | 2,921 | 472 | |
Put Options | |||
Financial instrument disclosures | |||
Notional amount - trading | 192,553 | 145,873 | |
Fair value assets - trading | 120 | 2,841 | |
Fair value liabilities - trading | 1,534 | 3,403 | |
Fair value hedge | Derivatives | |||
Financial instrument disclosures | |||
Notional amount - hedging | 238,086 | 92,884 | |
Fair value assets - hedging | 1,116 | 277 | |
Fair value liabilities - hedging | 6,164 | 5,330 | |
Fair value hedge | Interest rate swap | |||
Financial instrument disclosures | |||
Notional amount - hedging | 226,954 | 78,970 | |
Fair value assets - hedging | 1,116 | 277 | |
Fair value liabilities - hedging | 3,152 | 1,678 | |
Notional amount | 226,954 | 78,970 | |
Fair value hedge | Cross currency swap | |||
Financial instrument disclosures | |||
Notional amount - hedging | 11,132 | 13,914 | |
Fair value liabilities - hedging | 3,012 | 3,652 | |
Notional amount | 11,132 | 13,914 | |
Cash Flow hedge | Derivatives | |||
Financial instrument disclosures | |||
Notional amount - hedging | 1,137,457 | 1,148,561 | |
Fair value assets - hedging | 34,298 | 27,572 | |
Fair value liabilities - hedging | 31,818 | 80,888 | |
Cash Flow hedge | Swaps | |||
Financial instrument disclosures | |||
Notional amount - hedging | 1,137,457 | 1,148,561 | |
Fair value assets - hedging | 34,298 | 27,572 | |
Fair value liabilities - hedging | $ 31,818 | $ 80,888 |
Derivative Instruments and Ac_4
Derivative Instruments and Accounting Hedges - Fair Value Hedges (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Bank's portfolio of derivative instruments | ||
Notional Amounts | $ 132,441 | $ 163,654 |
Fair value hedge | Cross currency swap | ||
Bank's portfolio of derivative instruments | ||
Notional Amounts | 11,132 | 13,914 |
Fair value hedge | Interest rate swap | ||
Bank's portfolio of derivative instruments | ||
Notional Amounts | 226,954 | 78,970 |
Commercial loans | Fair value hedge | ||
Bank's portfolio of derivative instruments | ||
Notional Amounts | 11,132 | 13,914 |
Corporate bonds | Fair value hedge | ||
Bank's portfolio of derivative instruments | ||
Notional Amounts | $ 226,954 | $ 78,970 |
Derivative Instruments and Ac_5
Derivative Instruments and Accounting Hedges - Cash flows of bonds issued abroad, the objects of these hedges and the cash flows of the asset part of the derivative (Details) - Cash Flow hedge - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cross Currency Swap EUR | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | $ 93,785 | $ 88,576 |
Cross Currency Swap HKD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 434,793 | 397,664 |
Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 405,301 | 450,682 |
Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 49,440 | |
Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 155,979 | 137,005 |
Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 188,633 | 165,428 |
Corporate Bond EUR | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (93,785) | (88,576) |
Corporate Bond HKD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (434,793) | (397,664) |
Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (405,301) | (450,682) |
Corporate Bond USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (49,440) | |
Obligation USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (155,979) | (137,005) |
Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (188,633) | (165,428) |
Up to 1 month | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 870 | 212 |
Up to 1 month | Obligation USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (870) | (212) |
Between 1 and 3 months | Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 89,256 | 986 |
Between 1 and 3 months | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 86 | 235 |
Between 1 and 3 months | Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 49,362 | 292 |
Between 1 and 3 months | Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (89,256) | (986) |
Between 1 and 3 months | Obligation USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (86) | (235) |
Between 1 and 3 months | Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (49,362) | (292) |
Between 3 and 12 months | Cross Currency Swap EUR | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 1,338 | 1,246 |
Between 3 and 12 months | Cross Currency Swap HKD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 66,378 | 11,052 |
Between 3 and 12 months | Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 125,993 | 161,529 |
Between 3 and 12 months | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 1,476 | |
Between 3 and 12 months | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 49,401 | 93,173 |
Between 3 and 12 months | Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 1,072 | 1,150 |
Between 3 and 12 months | Corporate Bond EUR | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (1,338) | (1,246) |
Between 3 and 12 months | Corporate Bond HKD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (66,378) | (11,052) |
Between 3 and 12 months | Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (125,993) | (161,529) |
Between 3 and 12 months | Corporate Bond USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (1,476) | |
Between 3 and 12 months | Obligation USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (49,401) | (93,173) |
Between 3 and 12 months | Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (1,072) | (1,150) |
Due after 1 years but within 3 years | Cross Currency Swap EUR | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 2,675 | 2,491 |
Due after 1 years but within 3 years | Cross Currency Swap HKD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 21,601 | 68,634 |
Due after 1 years but within 3 years | Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 1,450 | 192,519 |
Due after 1 years but within 3 years | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 2,952 | |
Due after 1 years but within 3 years | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 105,622 | 43,385 |
Due after 1 years but within 3 years | Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 33,487 | 72,098 |
Due after 1 years but within 3 years | Corporate Bond EUR | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (2,675) | (2,491) |
Due after 1 years but within 3 years | Corporate Bond HKD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (21,601) | (68,634) |
Due after 1 years but within 3 years | Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (1,450) | (192,519) |
Due after 1 years but within 3 years | Corporate Bond USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (2,952) | |
Due after 1 years but within 3 years | Obligation USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (105,622) | (43,385) |
Due after 1 years but within 3 years | Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (33,487) | (72,098) |
Due after 3 years but within 5 years | Cross Currency Swap EUR | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 2,675 | 2,491 |
Due after 3 years but within 5 years | Cross Currency Swap HKD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 83,608 | 19,202 |
Due after 3 years but within 5 years | Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 82,552 | 474 |
Due after 3 years but within 5 years | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 2,952 | |
Due after 3 years but within 5 years | Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 32,882 | 28,886 |
Due after 3 years but within 5 years | Corporate Bond EUR | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (2,675) | (2,491) |
Due after 3 years but within 5 years | Corporate Bond HKD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (83,608) | (19,202) |
Due after 3 years but within 5 years | Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (82,552) | (474) |
Due after 3 years but within 5 years | Corporate Bond USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (2,952) | |
Due after 3 years but within 5 years | Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (32,882) | (28,886) |
Due after 5 years | Cross Currency Swap EUR | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 87,097 | 82,348 |
Due after 5 years | Cross Currency Swap HKD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 263,206 | 298,776 |
Due after 5 years | Cross Currency Swap CHF | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 106,050 | 95,174 |
Due after 5 years | Cross Currency Swap USD | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 42,060 | |
Due after 5 years | Cross Currency Swap JPY | ||
Cash flows of bonds issued | ||
Cash inflows from hedge instruments | 71,830 | 63,002 |
Due after 5 years | Corporate Bond EUR | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (87,097) | (82,348) |
Due after 5 years | Corporate Bond HKD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (263,206) | (298,776) |
Due after 5 years | Corporate Bond CHF | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (106,050) | (95,174) |
Due after 5 years | Corporate Bond USD | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | (42,060) | |
Due after 5 years | Corporate Bond JPY | ||
Cash flows of bonds issued | ||
Cash outflow of borrowings and bonds issued | $ (71,830) | $ (63,002) |
Derivative Instruments and Ac_6
Derivative Instruments and Accounting Hedges - Cash flows of the underlying assets portfolio and the cash flow of the liability part of the derivatives (Details) - Cash Flow hedge - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | $ 1,293,174 | $ 1,313,683 |
Between 1 and 3 months | Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | 144,458 | 2,344 |
Between 3 and 12 months | Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | 237,340 | 281,377 |
Due after 1 years but within 3 years | Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | 173,263 | 414,764 |
Due after 3 years but within 5 years | Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | 195,590 | 59,737 |
Due after 5 years | Cash flow in CLF | ||
Cash flows of the underlying asses portfolio | ||
Cash inflows | 542,523 | 555,461 |
Cross Currency Swap HKD | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (378,150) | (377,023) |
Cross Currency Swap HKD | Between 3 and 12 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (59,667) | (9,404) |
Cross Currency Swap HKD | Due after 1 years but within 3 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (16,835) | (66,188) |
Cross Currency Swap HKD | Due after 3 years but within 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (68,362) | (16,365) |
Cross Currency Swap HKD | Due after 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (233,286) | (285,066) |
Cross Currency Swap JPY | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (204,243) | (202,989) |
Cross Currency Swap JPY | Between 1 and 3 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (50,247) | (1,061) |
Cross Currency Swap JPY | Between 3 and 12 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (2,740) | (3,372) |
Cross Currency Swap JPY | Due after 1 years but within 3 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (37,432) | (85,598) |
Cross Currency Swap JPY | Due after 3 years but within 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (35,213) | (35,063) |
Cross Currency Swap JPY | Due after 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (78,611) | (77,895) |
Cross Currency Swap USD | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (193,821) | (155,917) |
Cross Currency Swap USD | Between 3 and 12 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (47,797) | (111,077) |
Cross Currency Swap USD | Due after 1 years but within 3 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (107,893) | (44,840) |
Cross Currency Swap USD | Due after 3 years but within 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (1,243) | |
Cross Currency Swap USD | Due after 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (36,888) | |
Cross Currency Swap CHF | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (422,670) | (484,333) |
Cross Currency Swap CHF | Between 1 and 3 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (94,211) | (1,283) |
Cross Currency Swap CHF | Between 3 and 12 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (125,325) | (155,767) |
Cross Currency Swap CHF | Due after 1 years but within 3 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (7,482) | (214,620) |
Cross Currency Swap CHF | Due after 3 years but within 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (87,164) | (4,793) |
Cross Currency Swap CHF | Due after 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (108,488) | (107,870) |
Cross Currency Swap EUR | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (94,290) | (93,421) |
Cross Currency Swap EUR | Between 3 and 12 months | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (1,811) | (1,757) |
Cross Currency Swap EUR | Due after 1 years but within 3 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (3,621) | (3,518) |
Cross Currency Swap EUR | Due after 3 years but within 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | (3,608) | (3,516) |
Cross Currency Swap EUR | Due after 5 years | ||
Cash flows of the underlying asses portfolio | ||
Cash outflows | $ (85,250) | $ (84,630) |
Derivative Instruments and Ac_7
Derivative Instruments and Accounting Hedges - CLF assets hedged (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($)item | Dec. 31, 2017CLP ($)item | Dec. 31, 2016CLP ($) | |
CLF Assets hedged | ||||
Accumulated amount of unrealized gain charged to equity, before tax | $ (44,612) | $ (30,943) | $ 14,979 | $ (50,481) |
Cash flow hedge adjustment, net | (22,589) | 11,158 | (38,366) | |
Cash Flow hedge | Cash flow in CLF | ||||
CLF Assets hedged | ||||
Accumulated amount of unrealized gain charged to equity, before tax | 30,943 | 14,979 | 50,481 | |
Cash flow hedge adjustment, net | (22,589) | 11,158 | (38,366) | |
Accumulated amount of unrealized gain charged to equity, after income tax | (31,983) | (9,394) | 20,552 | |
Net effect in income of derivatives | $ 85,659 | $ 93,612 | $ 135,929 | |
Number of hedges of net investments in foreign businesses | item | 0 | 0 |
Loans and Advances to Banks, _3
Loans and Advances to Banks, net (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Domestic Banks | |||
Subtotal | $ 99,776 | $ 119,998 | |
Foreign Banks | |||
Subtotal | 293,777 | 289,107 | |
Central Bank of Chile | |||
Subtotal | 1,100,831 | 350,916 | |
Total | $ 2,154,533 | 1,494,384 | 760,021 |
Gross Balance | |||
Domestic Banks | |||
Interbank loans | 100,023 | 120,017 | |
Foreign Banks | |||
Loans to foreign banks | 239,797 | 187,006 | |
Credits with third countries | 41,872 | 61,091 | |
Chilean export trade banks | 12,873 | 41,255 | |
Central Bank of Chile | |||
Central Bank Deposits | 1,100,306 | 350,000 | |
Other Central Bank credits | 525 | 916 | |
Total | 1,495,396 | 760,285 | |
Accumulated Amortization | |||
Domestic Banks | |||
Provisions for loans to domestic banks | (247) | (19) | |
Foreign Banks | |||
Provisions for loans to foreign banks | $ (765) | $ (245) |
Loans and Advances to Banks, _4
Loans and Advances to Banks, net - Impairment allowance for due from banks (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with domestic banks | $ 99,776 | $ 119,998 | ||
Loans and advances with foreign banks | 293,777 | 289,107 | ||
Loans and advances with central bank of Chile | 1,100,831 | 350,916 | ||
Loans and advances to banks | $ 2,154,533 | 1,494,384 | 760,021 | |
Financial assets at beginning of period | $ 4,390,903 | |||
Financial assets at end of period | 4,312,504 | |||
Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances to banks | 1,495,396 | 760,285 | ||
Loans and advances to banks, net | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with domestic banks | 100,023 | 120,017 | ||
Loans and advances with foreign banks | 294,542 | 289,352 | ||
Loans and advances with central bank of Chile | 1,100,831 | 350,916 | ||
Loans and advances to banks | 1,495,396 | 760,285 | ||
Financial assets at beginning of period | 760,285 | |||
Net change on financial assets | 748,184 | |||
Foreign exchange adjustments | (13,073) | |||
Financial assets at end of period | 1,495,396 | |||
Loans and advances to banks, net | Accumulated Amortization | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | (772) | |||
Net change on financial assets | (259) | |||
Impact on year end ECL of exposures transferred between stages during the year | (3) | |||
Foreign exchange adjustments | 22 | |||
Financial assets at end of period | (1,012) | |||
Loans and advances to banks, net | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with domestic banks | 100,023 | |||
Loans and advances with foreign banks | 266,648 | |||
Loans and advances with central bank of Chile | 1,100,831 | |||
Loans and advances to banks | 1,467,502 | |||
Financial assets at beginning of period | 760,285 | |||
Net change on financial assets | 746,808 | |||
Transfer to Stage 2 | (26,518) | |||
Foreign exchange adjustments | (13,073) | |||
Financial assets at end of period | 1,467,502 | |||
Loans and advances to banks, net | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | (772) | |||
Net change on financial assets | (250) | |||
Transfer to Stage 2 | 63 | |||
Foreign exchange adjustments | 22 | |||
Financial assets at end of period | (937) | |||
Loans and advances to banks, net | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with foreign banks | 27,894 | |||
Loans and advances to banks | 27,894 | |||
Net change on financial assets | 1,376 | |||
Transfer to Stage 2 | 26,518 | |||
Financial assets at end of period | 27,894 | |||
Loans and advances to banks, net | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Net change on financial assets | (9) | |||
Transfer to Stage 2 | (63) | |||
Impact on year end ECL of exposures transferred between stages during the year | (3) | |||
Financial assets at end of period | $ (75) | |||
Loans and advances to banks, net | Normal | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with domestic banks | 100,023 | 120,017 | ||
Loans and advances with foreign banks | 294,542 | 289,352 | ||
Loans and advances with central bank of Chile | 1,100,831 | $ 350,916 | ||
Loans and advances to banks, net | Normal | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with domestic banks | 100,023 | |||
Loans and advances with foreign banks | 266,648 | |||
Loans and advances with central bank of Chile | 1,100,831 | |||
Loans and advances to banks, net | Normal | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans and advances with foreign banks | $ 27,894 |
Loans to Customers, net (Detail
Loans to Customers, net (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Jan. 01, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) |
Financial instrument disclosures | |||||
Loans to customers | $ 39,419,340 | $ 27,341,254 | $ 24,955,692 | ||
Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 15,209,534 | 13,739,589 | |||
Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 11,321,469 | 10,407,440 | |||
Foreign trade loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,300,079 | 957,214 | |||
Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 213,102 | 262,791 | |||
Factoring transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 696,988 | 640,508 | |||
Student loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 50,478 | 44,705 | |||
Commercial lease transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,556,221 | 1,370,038 | |||
Finance lease for real estate | |||||
Financial instrument disclosures | |||||
Loans to customers | 758,970 | 653,575 | |||
Finance lease for other assets | |||||
Financial instrument disclosures | |||||
Loans to customers | 813,038 | 727,941 | |||
Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 71,197 | 56,893 | |||
Mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 8,017,743 | 7,445,221 | |||
Mortgage bonds | |||||
Financial instrument disclosures | |||||
Loans to customers | 21,222 | 29,773 | |||
Transferable mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 42,087 | 54,021 | |||
Other residential real estate mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 7,944,217 | 7,353,068 | |||
Credits from ANAP | |||||
Financial instrument disclosures | |||||
Loans to customers | 6 | 8 | |||
Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 10,211 | 8,351 | |||
Consumer loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 4,113,977 | 3,770,882 | |||
Consumer loans in installments | |||||
Financial instrument disclosures | |||||
Loans to customers | 2,693,951 | 2,363,447 | |||
Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 299,915 | 306,232 | |||
Credit card debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,119,810 | 1,100,606 | |||
Consumer lease transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 9 | ||||
Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 292 | 597 | |||
Gross Balance | |||||
Financial instrument disclosures | |||||
Loans to customers | 27,926,632 | 25,451,513 | |||
Gross Balance | Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 15,438,398 | 13,960,818 | |||
Gross Balance | Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 11,496,591 | 10,568,435 | |||
Gross Balance | Foreign trade loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,313,001 | 983,796 | |||
Gross Balance | Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 222,218 | 270,968 | |||
Gross Balance | Factoring transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 701,005 | 646,835 | |||
Gross Balance | Student loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 51,919 | 46,024 | |||
Gross Balance | Commercial lease transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,571,999 | 1,381,516 | |||
Gross Balance | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 81,665 | 63,244 | |||
Gross Balance | Mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 8,052,073 | 7,477,236 | |||
Gross Balance | Mortgage bonds | |||||
Financial instrument disclosures | |||||
Loans to customers | 21,443 | 29,784 | |||
Gross Balance | Transferable mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 42,313 | 54,079 | |||
Gross Balance | Other residential real estate mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 7,978,092 | 7,384,797 | |||
Gross Balance | Credits from ANAP | |||||
Financial instrument disclosures | |||||
Loans to customers | 6 | 8 | |||
Gross Balance | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 10,219 | 8,568 | |||
Gross Balance | Consumer loans | |||||
Financial instrument disclosures | |||||
Loans to customers | 4,436,161 | 4,013,459 | |||
Gross Balance | Consumer loans in installments | |||||
Financial instrument disclosures | |||||
Loans to customers | 2,957,493 | 2,538,740 | |||
Gross Balance | Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 312,783 | 316,678 | |||
Gross Balance | Credit card debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | 1,165,064 | 1,157,131 | |||
Gross Balance | Consumer lease transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | 9 | ||||
Gross Balance | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | 812 | 910 | |||
Accumulated Amortization | |||||
Financial instrument disclosures | |||||
Loans to customers | (585,378) | $ (569,638) | (495,821) | $ (554,769) | |
Accumulated Amortization | Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (228,864) | (221,410) | (221,229) | (272,274) | |
Accumulated Amortization | Commercial loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (175,122) | (160,995) | |||
Accumulated Amortization | Foreign trade loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (12,922) | (26,582) | |||
Accumulated Amortization | Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | (9,116) | (8,177) | |||
Accumulated Amortization | Factoring transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | (4,017) | (6,327) | |||
Accumulated Amortization | Student loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (1,441) | (1,319) | |||
Accumulated Amortization | Commercial lease transactions | |||||
Financial instrument disclosures | |||||
Loans to customers | (15,778) | (11,478) | |||
Accumulated Amortization | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | (10,468) | (6,351) | |||
Accumulated Amortization | Mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (34,330) | (33,777) | (32,015) | (32,747) | |
Accumulated Amortization | Mortgage bonds | |||||
Financial instrument disclosures | |||||
Loans to customers | (221) | (11) | |||
Accumulated Amortization | Transferable mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (226) | (58) | |||
Accumulated Amortization | Other residential real estate mortgage loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (33,875) | (31,729) | |||
Accumulated Amortization | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | (8) | (217) | |||
Accumulated Amortization | Consumer loans | |||||
Financial instrument disclosures | |||||
Loans to customers | (322,184) | $ (314,451) | (242,577) | $ (249,748) | |
Accumulated Amortization | Consumer loans in installments | |||||
Financial instrument disclosures | |||||
Loans to customers | (263,542) | (175,293) | |||
Accumulated Amortization | Current account debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | (12,868) | (10,446) | |||
Accumulated Amortization | Credit card debtors | |||||
Financial instrument disclosures | |||||
Loans to customers | (45,254) | (56,525) | |||
Accumulated Amortization | Other loans and accounts receivable | |||||
Financial instrument disclosures | |||||
Loans to customers | $ (520) | $ (313) |
Loans to Customers, net - Gross
Loans to Customers, net - Gross carrying amount due from banks (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | $ 39,419,340 | $ 27,341,254 | $ 24,955,692 | |
Financial assets at beginning of period | $ 4,390,903 | |||
Financial assets at end of period | 4,312,504 | |||
Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 27,926,632 | 25,451,513 | ||
Commercial loans | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 15,209,534 | 13,739,589 | ||
Commercial loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 15,438,398 | 13,960,818 | ||
Mortgage loans | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 8,017,743 | 7,445,221 | ||
Mortgage loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 8,052,073 | 7,477,236 | ||
Consumer loans | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | 4,113,977 | 3,770,882 | ||
Consumer loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Loans to customers | $ 4,436,161 | $ 4,013,459 | ||
Loans to customers | Commercial loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 13,960,818 | |||
Net change on financial assets | 1,304,337 | |||
Amounts written off | (52,419) | |||
Foreign exchange adjustments | 225,662 | |||
Financial assets at end of period | 15,438,398 | |||
Loans to customers | Commercial loans | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 8,446,627 | |||
Net change on financial assets | 968,288 | |||
Transfer to Stage 1 | 681,223 | |||
Transfer to Stage 2 | (811,209) | |||
Transfer to Stage 3 | (15,175) | |||
Amounts written off | (150) | |||
Foreign exchange adjustments | 156,816 | |||
Financial assets at end of period | 9,426,420 | |||
Loans to customers | Commercial loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 2,506,255 | |||
Net change on financial assets | 780,778 | |||
Transfer to Stage 1 | 375,672 | |||
Transfer to Stage 2 | (602,997) | |||
Transfer to Stage 3 | (16,665) | |||
Amounts written off | (67) | |||
Foreign exchange adjustments | 6,288 | |||
Financial assets at end of period | 3,049,264 | |||
Loans to customers | Commercial loans | Lifetime expected credit losses | Financial instruments credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 23 | |||
Net change on financial assets | 592 | |||
Financial assets at end of period | 615 | |||
Loans to customers | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 2,228,401 | |||
Net change on financial assets | (254,542) | |||
Transfer to Stage 1 | (680,838) | |||
Transfer to Stage 2 | 822,133 | |||
Transfer to Stage 3 | (32,569) | |||
Amounts written off | (11) | |||
Foreign exchange adjustments | 52,274 | |||
Financial assets at end of period | 2,134,848 | |||
Loans to customers | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 162,231 | |||
Net change on financial assets | (81,058) | |||
Transfer to Stage 1 | (385) | |||
Transfer to Stage 2 | (10,924) | |||
Transfer to Stage 3 | 47,744 | |||
Amounts written off | (5,422) | |||
Foreign exchange adjustments | 8,378 | |||
Financial assets at end of period | 120,564 | |||
Loans to customers | Commercial loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 408,337 | |||
Net change on financial assets | (105,114) | |||
Transfer to Stage 1 | (346,936) | |||
Transfer to Stage 2 | 630,963 | |||
Transfer to Stage 3 | (127,676) | |||
Amounts written off | (468) | |||
Foreign exchange adjustments | 1,145 | |||
Financial assets at end of period | 460,251 | |||
Loans to customers | Commercial loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 208,944 | |||
Net change on financial assets | (4,607) | |||
Transfer to Stage 1 | (28,736) | |||
Transfer to Stage 2 | (27,966) | |||
Transfer to Stage 3 | 144,341 | |||
Amounts written off | (46,301) | |||
Foreign exchange adjustments | 761 | |||
Financial assets at end of period | 246,436 | |||
Loans to customers | Mortgage loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 7,477,236 | |||
Net change on financial assets | 581,830 | |||
Amounts written off | (6,993) | |||
Financial assets at end of period | 8,052,073 | |||
Loans to customers | Mortgage loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 6,410,939 | |||
Net change on financial assets | 734,990 | |||
Transfer to Stage 1 | 399,309 | |||
Transfer to Stage 2 | (651,619) | |||
Financial assets at end of period | 6,893,619 | |||
Loans to customers | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 904,826 | |||
Net change on financial assets | (115,034) | |||
Transfer to Stage 1 | (397,363) | |||
Transfer to Stage 2 | 671,775 | |||
Transfer to Stage 3 | (71,113) | |||
Amounts written off | (6) | |||
Financial assets at end of period | 993,085 | |||
Loans to customers | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 161,471 | |||
Net change on financial assets | (38,126) | |||
Transfer to Stage 1 | (1,946) | |||
Transfer to Stage 2 | (20,156) | |||
Transfer to Stage 3 | 71,113 | |||
Amounts written off | (6,987) | |||
Financial assets at end of period | 165,369 | |||
Loans to customers | Consumer loans | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 4,013,459 | |||
Net change on financial assets | 651,647 | |||
Amounts written off | (233,511) | |||
Foreign exchange adjustments | 4,566 | |||
Financial assets at end of period | 4,436,161 | |||
Loans to customers | Consumer loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 2,761,640 | |||
Net change on financial assets | 1,007,548 | |||
Transfer to Stage 1 | 381,126 | |||
Transfer to Stage 2 | (978,112) | |||
Transfer to Stage 3 | (9,340) | |||
Amounts written off | (104) | |||
Foreign exchange adjustments | 3,532 | |||
Financial assets at end of period | 3,166,290 | |||
Loans to customers | Consumer loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 967,918 | |||
Net change on financial assets | (416,546) | |||
Transfer to Stage 1 | (335,330) | |||
Transfer to Stage 2 | 1,040,597 | |||
Transfer to Stage 3 | (281,144) | |||
Amounts written off | (627) | |||
Foreign exchange adjustments | 1,030 | |||
Financial assets at end of period | 975,898 | |||
Loans to customers | Consumer loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Gross Balance | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
Financial assets at beginning of period | 283,901 | |||
Net change on financial assets | 60,645 | |||
Transfer to Stage 1 | (45,796) | |||
Transfer to Stage 2 | (62,485) | |||
Transfer to Stage 3 | 290,484 | |||
Amounts written off | (232,780) | |||
Foreign exchange adjustments | 4 | |||
Financial assets at end of period | $ 293,973 |
Loans to Customers, net - Impai
Loans to Customers, net - Impairment allowance for due from banks (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Jan. 01, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | $ 39,419,340 | $ 27,341,254 | $ 24,955,692 | |||
Financial assets at beginning of period | $ 4,390,903 | |||||
Financial assets at end of period | 4,312,504 | |||||
Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | (585,378) | $ (569,638) | (495,821) | $ (554,769) | ||
Commercial loans | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 15,209,534 | 13,739,589 | ||||
Commercial loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | (228,864) | (221,410) | (221,229) | (272,274) | ||
Mortgage loans | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 8,017,743 | 7,445,221 | ||||
Mortgage loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | (34,330) | (33,777) | (32,015) | (32,747) | ||
Consumer loans | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 4,113,977 | 3,770,882 | ||||
Consumer loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | (322,184) | $ (314,451) | (242,577) | $ (249,748) | ||
Loans to customers | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 27,926,632 | 25,451,513 | ||||
Loans to customers | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 9,426,420 | |||||
Loans to customers | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 13,109,173 | |||||
Loans to customers | Lifetime expected credit losses | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 615 | |||||
Loans to customers | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 2,134,848 | |||||
Loans to customers | Lifetime expected credit losses | Individual | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 120,564 | |||||
Loans to customers | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 2,429,234 | |||||
Loans to customers | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 705,778 | |||||
Loans to customers | Commercial loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 15,438,398 | 13,960,818 | ||||
Financial assets at beginning of period | (221,410) | |||||
Net change on financial assets | (11,488) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (43,116) | |||||
Amounts written off | (52,419) | |||||
Foreign exchange adjustments | (5,269) | |||||
Financial assets at end of period | (228,864) | |||||
Loans to customers | Commercial loans | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 9,426,420 | |||||
Financial assets at beginning of period | (16,527) | |||||
Net change on financial assets | (9,424) | |||||
Transfer to Stage 1 | (4,114) | |||||
Transfer to Stage 2 | 2,600 | |||||
Transfer to Stage 3 | 70 | |||||
Impact on year end ECL of exposures transferred between stages during the year | 2,702 | |||||
Amounts written off | (150) | |||||
Foreign exchange adjustments | (337) | |||||
Financial assets at end of period | (24,880) | |||||
Loans to customers | Commercial loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 3,049,264 | |||||
Financial assets at beginning of period | (16,663) | |||||
Net change on financial assets | (12,463) | |||||
Transfer to Stage 1 | (14,807) | |||||
Transfer to Stage 2 | 11,606 | |||||
Transfer to Stage 3 | 1,189 | |||||
Impact on year end ECL of exposures transferred between stages during the year | 9,589 | |||||
Amounts written off | (67) | |||||
Foreign exchange adjustments | (112) | |||||
Financial assets at end of period | (21,594) | |||||
Loans to customers | Commercial loans | Lifetime expected credit losses | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 615 | |||||
Financial assets at beginning of period | (6) | |||||
Net change on financial assets | (293) | |||||
Financial assets at end of period | (299) | |||||
Loans to customers | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 2,134,848 | |||||
Financial assets at beginning of period | (31,252) | |||||
Net change on financial assets | 5,045 | |||||
Transfer to Stage 1 | 3,981 | |||||
Transfer to Stage 2 | (8,805) | |||||
Transfer to Stage 3 | 4,134 | |||||
Impact on year end ECL of exposures transferred between stages during the year | (4,512) | |||||
Amounts written off | (11) | |||||
Foreign exchange adjustments | (945) | |||||
Financial assets at end of period | (32,343) | |||||
Loans to customers | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 120,564 | |||||
Financial assets at beginning of period | (50,014) | |||||
Net change on financial assets | 18,715 | |||||
Transfer to Stage 1 | 133 | |||||
Transfer to Stage 2 | 6,205 | |||||
Transfer to Stage 3 | (4,204) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (5,505) | |||||
Amounts written off | (5,422) | |||||
Foreign exchange adjustments | (3,446) | |||||
Financial assets at end of period | (32,694) | |||||
Loans to customers | Commercial loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 460,251 | |||||
Financial assets at beginning of period | (20,247) | |||||
Net change on financial assets | 18,338 | |||||
Transfer to Stage 1 | 6,387 | |||||
Transfer to Stage 2 | (15,817) | |||||
Transfer to Stage 3 | 13,572 | |||||
Impact on year end ECL of exposures transferred between stages during the year | (23,822) | |||||
Amounts written off | (468) | |||||
Foreign exchange adjustments | (46) | |||||
Financial assets at end of period | (21,167) | |||||
Loans to customers | Commercial loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 246,436 | |||||
Financial assets at beginning of period | (86,701) | |||||
Net change on financial assets | (31,406) | |||||
Transfer to Stage 1 | 8,420 | |||||
Transfer to Stage 2 | 4,211 | |||||
Transfer to Stage 3 | (14,761) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (21,568) | |||||
Amounts written off | (46,301) | |||||
Foreign exchange adjustments | (383) | |||||
Financial assets at end of period | (95,887) | |||||
Loans to customers | Mortgage loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 8,052,073 | 7,477,236 | ||||
Financial assets at beginning of period | (33,777) | |||||
Net change on financial assets | 4,056 | |||||
Impact on year end ECL of exposures transferred between stages during the year | (11,602) | |||||
Amounts written off | (6,993) | |||||
Financial assets at end of period | (34,330) | |||||
Loans to customers | Mortgage loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 6,893,619 | |||||
Financial assets at beginning of period | (740) | |||||
Net change on financial assets | (299) | |||||
Transfer to Stage 1 | (892) | |||||
Transfer to Stage 2 | 404 | |||||
Impact on year end ECL of exposures transferred between stages during the year | 803 | |||||
Financial assets at end of period | (724) | |||||
Loans to customers | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 993,085 | |||||
Financial assets at beginning of period | (17,351) | |||||
Net change on financial assets | 8,772 | |||||
Transfer to Stage 1 | 758 | |||||
Transfer to Stage 2 | (2,112) | |||||
Transfer to Stage 3 | 2,693 | |||||
Impact on year end ECL of exposures transferred between stages during the year | (9,661) | |||||
Amounts written off | (6) | |||||
Financial assets at end of period | (16,895) | |||||
Loans to customers | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 165,369 | |||||
Financial assets at beginning of period | (15,686) | |||||
Net change on financial assets | (4,417) | |||||
Transfer to Stage 1 | 134 | |||||
Transfer to Stage 2 | 1,708 | |||||
Transfer to Stage 3 | (2,693) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (2,744) | |||||
Amounts written off | (6,987) | |||||
Financial assets at end of period | (16,711) | |||||
Loans to customers | Consumer loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 4,436,161 | 4,013,459 | ||||
Financial assets at beginning of period | (314,451) | |||||
Net change on financial assets | (68,099) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (173,078) | |||||
Amounts written off | (233,511) | |||||
Foreign exchange adjustments | (67) | |||||
Financial assets at end of period | (322,184) | |||||
Loans to customers | Consumer loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 3,166,290 | |||||
Financial assets at beginning of period | (44,078) | |||||
Net change on financial assets | (40,305) | |||||
Transfer to Stage 1 | (26,682) | |||||
Transfer to Stage 2 | 44,301 | |||||
Transfer to Stage 3 | 2,024 | |||||
Impact on year end ECL of exposures transferred between stages during the year | 15,379 | |||||
Amounts written off | (104) | |||||
Foreign exchange adjustments | (16) | |||||
Financial assets at end of period | (49,273) | |||||
Loans to customers | Consumer loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 975,898 | |||||
Financial assets at beginning of period | (115,096) | |||||
Net change on financial assets | 91,527 | |||||
Transfer to Stage 1 | 9,604 | |||||
Transfer to Stage 2 | (68,448) | |||||
Transfer to Stage 3 | 72,629 | |||||
Impact on year end ECL of exposures transferred between stages during the year | (101,086) | |||||
Amounts written off | (627) | |||||
Foreign exchange adjustments | (49) | |||||
Financial assets at end of period | (110,292) | |||||
Loans to customers | Consumer loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 293,973 | |||||
Financial assets at beginning of period | (155,277) | |||||
Net change on financial assets | (119,321) | |||||
Transfer to Stage 1 | 17,078 | |||||
Transfer to Stage 2 | 24,147 | |||||
Transfer to Stage 3 | (74,653) | |||||
Impact on year end ECL of exposures transferred between stages during the year | (87,371) | |||||
Amounts written off | (232,780) | |||||
Foreign exchange adjustments | (2) | |||||
Financial assets at end of period | $ (162,619) | |||||
Loans to customers | Normal | Commercial loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 14,969,565 | 13,494,128 | ||||
Loans to customers | Normal | Commercial loans | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 9,426,420 | |||||
Loans to customers | Normal | Commercial loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 3,049,264 | |||||
Loans to customers | Normal | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 2,039,954 | |||||
Loans to customers | Normal | Commercial loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 447,225 | |||||
Loans to customers | Normal | Commercial loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 6,702 | |||||
Loans to customers | Normal | Mortgage loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 7,887,217 | 7,316,969 | ||||
Loans to customers | Normal | Mortgage loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 6,893,619 | |||||
Loans to customers | Normal | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 993,085 | |||||
Loans to customers | Normal | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 513 | |||||
Loans to customers | Normal | Consumer loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 4,166,767 | 3,760,472 | ||||
Loans to customers | Normal | Consumer loans | 12-month expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 3,166,290 | |||||
Loans to customers | Normal | Consumer loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 975,898 | |||||
Loans to customers | Normal | Consumer loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 24,579 | |||||
Loans to customers | Substandard | Commercial loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 94,894 | 101,253 | ||||
Loans to customers | Substandard | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 94,894 | |||||
Loans to customers | Non-complying | Commercial loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 373,939 | 365,437 | ||||
Loans to customers | Non-complying | Commercial loans | Lifetime expected credit losses | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 615 | |||||
Loans to customers | Non-complying | Commercial loans | Lifetime expected credit losses | Individual | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 120,564 | |||||
Loans to customers | Non-complying | Commercial loans | Lifetime expected credit losses | Group | Financial instruments not credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 13,026 | |||||
Loans to customers | Non-complying | Commercial loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 239,734 | |||||
Loans to customers | Non-complying | Mortgage loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 164,856 | 160,267 | ||||
Loans to customers | Non-complying | Mortgage loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 164,856 | |||||
Loans to customers | Non-complying | Consumer loans | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | 269,394 | $ 252,987 | ||||
Loans to customers | Non-complying | Consumer loans | Lifetime expected credit losses | Group | Financial instruments credit-impaired | Accumulated Amortization | ||||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||||
Loans to customers | $ 269,394 |
Loans to Customers, net - Allow
Loans to Customers, net - Allowance for loan losses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Jan. 01, 2018CLP ($) | |
Allowances for loan losses | ||||
Balance as of beginning of period | $ (24,955,692) | |||
Balance as of end of period | $ (39,419,340) | (27,341,254) | $ (24,955,692) | |
Commercial loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | (13,739,589) | |||
Balance as of end of period | (15,209,534) | (13,739,589) | ||
Mortgage loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | (7,445,221) | |||
Balance as of end of period | (8,017,743) | (7,445,221) | ||
Consumer loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | (3,770,882) | |||
Balance as of end of period | (4,113,977) | (3,770,882) | ||
Accumulated Amortization | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | 495,821 | 554,769 | ||
Impact adoption IFRS | $ 73,817 | |||
Charge-offs | (292,923) | (318,790) | ||
Sales or transfer of credits | (958) | (11,595) | ||
Allowances (released) established, net | 309,621 | 271,437 | ||
Balance as of end of period | 585,378 | 495,821 | ||
Accumulated Amortization | Commercial loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | 221,229 | 272,274 | ||
Impact adoption IFRS | 181 | |||
Charge-offs | (52,419) | (58,716) | ||
Sales or transfer of credits | (958) | (11,595) | ||
Allowances (released) established, net | 60,831 | 19,266 | ||
Balance as of end of period | 228,864 | 221,229 | ||
Accumulated Amortization | Mortgage loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | 32,015 | 32,747 | ||
Impact adoption IFRS | 1,762 | |||
Charge-offs | (6,993) | (5,093) | ||
Allowances (released) established, net | 7,546 | 4,361 | ||
Balance as of end of period | 34,330 | 32,015 | ||
Accumulated Amortization | Consumer loans | ||||
Allowances for loan losses | ||||
Balance as of beginning of period | 242,577 | 249,748 | ||
Impact adoption IFRS | $ 71,874 | |||
Charge-offs | (233,511) | (254,981) | ||
Allowances (released) established, net | 241,244 | 247,810 | ||
Balance as of end of period | $ 322,184 | $ 242,577 |
Loans to Customers, net - Finan
Loans to Customers, net - Financial Lease Contracts (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | $ 1,765,815 | $ 1,555,375 |
Unearned income | (200,151) | (177,857) |
Net investment in finance lease | 1,565,664 | 1,377,518 |
Total over due portfolio | $ 6,344 | 3,998 |
Minimum | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Average life (in years) | 2 years | |
Maximum | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Average life (in years) | 15 years | |
Due within 1 year | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | $ 519,186 | 461,354 |
Unearned income | (60,216) | (54,216) |
Net investment in finance lease | 458,970 | 407,138 |
2 years | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | 383,164 | 338,305 |
Unearned income | (44,066) | (39,946) |
Net investment in finance lease | 339,098 | 298,359 |
Due after 2 years but within 3 years | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | 255,997 | 230,920 |
Unearned income | (28,740) | (26,136) |
Net investment in finance lease | 227,257 | 204,784 |
Due after 3 years but within 4 years | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | 162,310 | 146,921 |
Unearned income | (19,471) | (17,680) |
Net investment in finance lease | 142,839 | 129,241 |
Due after 4 years but within 5 years | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | 108,453 | 99,268 |
Unearned income | (13,992) | (12,564) |
Net investment in finance lease | 94,461 | 86,704 |
Due after 5 years | ||
Scheduled cash flows to be received from financial leasing contracts | ||
Total receivable | 336,705 | 278,607 |
Unearned income | (33,666) | (27,315) |
Net investment in finance lease | $ 303,039 | $ 251,292 |
Loans to Customers, net - Loans
Loans to Customers, net - Loans by industry sector (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Financial instrument disclosures | |||
Loans to customers | $ 39,419,340 | $ 27,341,254 | $ 24,955,692 |
Nominal value of loans acquired | 36,919 | 1,495 | |
Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 27,926,632 | $ 25,451,513 | |
% | 100.00% | 100.00% | 100.00% |
Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 27,833,088 | $ 25,393,211 | |
Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 93,544 | 58,302 | |
Commercial loans | |||
Financial instrument disclosures | |||
Loans to customers | 15,209,534 | 13,739,589 | |
Commercial loans | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 15,438,398 | $ 13,960,818 | |
% | 55.28% | 55.28% | 54.85% |
Commercial loans | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 15,344,854 | $ 13,902,516 | |
Commercial loans | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 93,544 | 58,302 | |
Commerce | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,324,325 | $ 2,035,129 | |
% | 8.32% | 8.32% | 7.99% |
Commerce | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,285,895 | $ 2,013,411 | |
Commerce | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 38,430 | 21,718 | |
Financial services | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,122,599 | $ 1,851,649 | |
% | 7.60% | 7.60% | 7.27% |
Financial services | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,119,815 | $ 1,845,464 | |
Financial services | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 2,784 | 6,185 | |
Services | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,109,491 | $ 1,964,238 | |
% | 7.55% | 7.55% | 7.72% |
Services | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 2,109,143 | $ 1,964,238 | |
Services | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 348 | ||
Construction | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,752,237 | $ 1,493,373 | |
% | 6.27% | 6.27% | 5.87% |
Construction | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,752,237 | $ 1,493,373 | |
Agriculture and livestock | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,582,520 | $ 1,354,069 | |
% | 5.67% | 5.67% | 5.32% |
Agriculture and livestock | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,582,520 | $ 1,354,069 | |
Manufacturing | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,579,475 | $ 1,399,692 | |
% | 5.66% | 5.66% | 5.50% |
Manufacturing | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,544,862 | $ 1,369,293 | |
Manufacturing | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 34,613 | 30,399 | |
Transportation and telecommunications | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,498,142 | $ 1,612,930 | |
% | 5.37% | 5.37% | 6.34% |
Transportation and telecommunications | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,480,773 | $ 1,612,930 | |
Transportation and telecommunications | Foreign banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | 17,369 | ||
Electricity, gas and water | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 461,351 | $ 565,695 | |
% | 1.65% | 1.65% | 2.22% |
Electricity, gas and water | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 461,351 | $ 565,695 | |
Mining | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 453,549 | $ 422,176 | |
% | 1.62% | 1.62% | 1.66% |
Mining | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 453,549 | $ 422,176 | |
Fishing | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 156,472 | $ 145,266 | |
% | 0.56% | 0.56% | 0.57% |
Fishing | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 156,472 | $ 145,266 | |
Other | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,398,237 | $ 1,116,601 | |
% | 5.01% | 5.01% | 4.39% |
Other | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 1,398,237 | $ 1,116,601 | |
Mortgage loans | |||
Financial instrument disclosures | |||
Loans to customers | 8,017,743 | 7,445,221 | |
Mortgage loans | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 8,052,073 | $ 7,477,236 | |
% | 28.83% | 28.83% | 29.38% |
Mortgage loans | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 8,052,073 | $ 7,477,236 | |
Consumer loans | |||
Financial instrument disclosures | |||
Loans to customers | 4,113,977 | 3,770,882 | |
Consumer loans | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 4,436,161 | $ 4,013,459 | |
% | 15.89% | 15.89% | 15.77% |
Consumer loans | Domestic banks | Gross Balance | |||
Financial instrument disclosures | |||
Loans to customers | $ 4,436,161 | $ 4,013,459 |
Loans to Customers, net - Sale
Loans to Customers, net - Sale or transfer of credits from the loans to customers (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Jan. 01, 2018CLP ($) | |
Financial Assets Held-for-Trading | ||||||
Loans to customers | $ 24,955,692 | $ 39,419,340 | $ 27,341,254 | |||
Effect on income (loss) gain | $ 267 | 2,063 | $ 4,930 | |||
Sale of loans | ||||||
Financial Assets Held-for-Trading | ||||||
Sale price | 21,876 | 24,149 | ||||
Effect on income (loss) gain | 267 | 2,063 | ||||
Sale of outstanding loans | ||||||
Financial Assets Held-for-Trading | ||||||
Sale price | 21,876 | 24,126 | ||||
Effect on income (loss) gain | $ 267 | 2,040 | ||||
Sale of write-off loans | ||||||
Financial Assets Held-for-Trading | ||||||
Sale price | 23 | |||||
Effect on income (loss) gain | 23 | |||||
Gross Balance | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | 25,451,513 | 27,926,632 | ||||
Gross Balance | Sale of loans | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | 33,681 | 22,567 | ||||
Gross Balance | Sale of outstanding loans | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | 33,681 | 22,567 | ||||
Accumulated Amortization | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | (495,821) | $ (554,769) | (585,378) | $ (569,638) | ||
Accumulated Amortization | Sale of loans | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | (11,595) | (958) | ||||
Accumulated Amortization | Sale of outstanding loans | ||||||
Financial Assets Held-for-Trading | ||||||
Loans to customers | $ (11,595) | $ (958) |
Financial Assets Available-fo_3
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income - Financial assets at fair value through other comprehensive income (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |||
Financial assets at fair value through other comprehensive income | $ 1,518,441 | $ 1,053,191 | |
Financial assets available-for-sale | $ 1,526,315 | ||
Assets instruments Available-for Sale | |||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |||
Financial assets available-for-sale | 1,526,315 | ||
Debt instruments valued at fair value | |||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |||
Financial assets at fair value through other comprehensive income | 1,043,440 | $ 1,516,063 | |
Equity instruments valued at fair value | |||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | |||
Financial assets at fair value through other comprehensive income | $ 9,751 |
Financial Assets Available-fo_4
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income - Securities classified as available-for-sale (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | $ 1,526,315 | |||
Financial assets at fair value through other comprehensive income | $ 1,518,441 | $ 1,053,191 | ||
Assets instruments Available-for Sale | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 1,526,315 | |||
Net unrealized gain recorded in other comprehensive income for available for sale securities | $ 9,521 | |||
Assets instruments Available-for Sale | Instruments issued by the Chilean Governments and Central Bank of Chile | Comder Contraparte Central S.A | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Amount of other financial instruments considered as collateral guarantee by executing derivative contracts | $ 31,415 | |||
Assets instruments Available-for Sale | Bonds issued by the Chilean Government and Central Bank | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 204,128 | |||
Assets instruments Available-for Sale | Promissory notes issued by the Chilean Government and Central Bank | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 3,346 | |||
Assets instruments Available-for Sale | Other instruments | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 148,894 | |||
Assets instruments Available-for Sale | Other instruments | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 83,006 | |||
Assets instruments Available-for Sale | Other instruments with repurchase agreements | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 5,177 | |||
Repurchase agreement expiration period | 3 days | |||
Assets instruments Available-for Sale | Equity instruments valued at cost | Instruments issued by foreign institutions | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 50 | |||
Assets instruments Available-for Sale | Equity instruments valued at fair value | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 9,218 | |||
Assets instruments Available-for Sale | Equity instruments valued at fair value | Instruments issued by foreign institutions | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 984 | |||
Assets instruments Available-for Sale | Mortgage bonds from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 99,572 | |||
Assets instruments Available-for Sale | Bonds from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 5,415 | |||
Assets instruments Available-for Sale | Deposits from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 956,733 | |||
Assets instruments Available-for Sale | Bonds from other Chilean companies | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 14,969 | |||
Debt instruments valued at fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Net unrealized gain recorded in other comprehensive income for available for sale securities | $ 3,649 | |||
Impairment of financial assets | $ 4,268 | |||
Financial assets at fair value through other comprehensive income | 1,043,440 | $ 1,516,063 | ||
Debt instruments valued at fair value | Other instruments | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Assets | 6,965 | |||
Repurchase agreement expiration period | 3 days | |||
Debt instruments valued at fair value | Fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 1,043,440 | |||
Debt instruments valued at fair value | Fair value | Bonds issued by the Chilean Government and Central Bank | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 135,145 | |||
Debt instruments valued at fair value | Fair value | Other instruments | Instruments issued by the Chilean Governments and Central Bank of Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 29,077 | |||
Debt instruments valued at fair value | Fair value | Other instruments | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 107,125 | |||
Debt instruments valued at fair value | Fair value | Other instruments | Instruments issued by foreign institutions | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 108,544 | |||
Debt instruments valued at fair value | Fair value | Mortgage bonds from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 92,491 | |||
Debt instruments valued at fair value | Fair value | Bonds from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 5,351 | |||
Debt instruments valued at fair value | Fair value | Deposits from domestic banks | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 559,108 | |||
Debt instruments valued at fair value | Fair value | Bonds from other Chilean companies | Other instruments issued in Chile | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | $ 6,599 |
Financial Assets Available-fo_5
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income - Analysis of changes (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at beginning of period | $ 4,390,903 | |||
Financial assets at end of period | 4,312,504 | |||
Financial assets available-for-sale | $ 1,526,315 | |||
Financial assets at fair value through other comprehensive income | $ 1,518,441 | $ 1,053,191 | ||
Debt instruments valued at fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 1,043,440 | 1,516,063 | ||
Debt instruments valued at fair value | Investment grade | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 827,770 | 1,433,057 | ||
Debt instruments valued at fair value | Without rating | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 215,670 | $ 83,006 | ||
Debt instruments valued at fair value | Gross Balance | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at beginning of period | 1,516,063 | |||
Change in fair value | 14,162 | |||
Foreign exchange adjustments | 28,558 | |||
Net change on financial assets | (515,343) | |||
Financial assets at end of period | 1,043,440 | |||
Debt instruments valued at fair value | Accumulated Amortization | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at beginning of period | 5,820 | |||
Impact of net re-measurement of year end ECL | 258 | |||
Foreign exchange adjustments | 168 | |||
Net change on financial assets | (1,978) | |||
Financial assets at end of period | 4,268 | |||
Debt instruments valued at fair value | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 1,043,440 | |||
Debt instruments valued at fair value | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Investment grade | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 827,770 | |||
Debt instruments valued at fair value | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Without rating | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 215,670 | |||
Debt instruments valued at fair value | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Gross Balance | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at beginning of period | 1,516,063 | |||
Change in fair value | 14,162 | |||
Foreign exchange adjustments | 28,558 | |||
Net change on financial assets | (515,343) | |||
Financial assets at end of period | 1,043,440 | |||
Debt instruments valued at fair value | 12-month expected credit losses | Individual | Financial instruments not credit-impaired | Accumulated Amortization | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at beginning of period | 5,820 | |||
Impact of net re-measurement of year end ECL | 258 | |||
Foreign exchange adjustments | 168 | |||
Net change on financial assets | (1,978) | |||
Financial assets at end of period | $ 4,268 | |||
Equity instruments valued at fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 9,751 | |||
Other instruments issued in Chile | Equity instruments valued at fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | 8,939 | |||
Instruments issued by foreign institutions | Equity instruments valued at fair value | ||||
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income | ||||
Financial assets at fair value through other comprehensive income | $ 812 |
Financial Assets Available-fo_6
Financial Assets Available-for-Sale and Financial Assets at Fair Value through Other Comprehensive Income - Realized and unrealized profits (Details) - CLP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt issued | |||
Net of tax amount | $ 10,121 | $ (3,476) | |
Financial assets available-for-sale | |||
Debt issued | |||
Net gain (loss) on financial assets before income tax | (13,878) | 4,775 | $ (52,345) |
Tax (expense) benefit | 3,757 | (1,299) | 12,575 |
Net of tax amount | (10,121) | 3,476 | (39,770) |
Realized gains reclassified to the income statement | $ 400 | $ 5,149 | $ 64,011 |
Investments in Other Companie_2
Investments in Other Companies (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | |
Associates and joint ventures | ||||||
Investments in other companies | $ 130,893 | $ 153,731 | ||||
Book Value | 35,771 | $ 60,917 | 42,252 | $ 30,314 | $ 25,849 | |
Equity | 130,893 | 153,731 | ||||
Income (Loss) | $ 6,811 | 5,511 | ||||
Joint Venture | ||||||
Associates and joint ventures | ||||||
Investments in other companies | 11,651 | 13,423 | ||||
Book Value | 5,978 | 6,887 | ||||
Equity | 11,651 | 13,423 | ||||
Income (Loss) | $ 1,284 | $ 1,207 | ||||
Servipag Ltda. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Joint Ventures | 50.00% | 50.00% | ||||
Investments in other companies | $ 9,997 | 11,398 | ||||
Book Value | 4,999 | 5,699 | ||||
Equity | 9,997 | 11,398 | ||||
Income (Loss) | $ 701 | $ 700 | ||||
Artikos Chile S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Joint Ventures | 50.00% | 50.00% | ||||
Investments in other companies | $ 1,654 | 2,025 | ||||
Book Value | 979 | 1,188 | ||||
Equity | 1,654 | 2,025 | ||||
Income (Loss) | $ 583 | 507 | ||||
Associates | ||||||
Associates and joint ventures | ||||||
Investments in other companies | 119,242 | 140,308 | ||||
Book Value | 29,793 | 35,365 | ||||
Equity | 119,242 | 140,308 | ||||
Income (Loss) | $ 5,527 | $ 4,304 | ||||
Transbank S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 26.16% | 26.16% | ||||
Investments in other companies | $ 56,804 | 69,358 | ||||
Book Value | 15,070 | 18,468 | ||||
Equity | 56,804 | 69,358 | ||||
Income (Loss) | $ 3,262 | $ 2,117 | ||||
Sociedad Operadora de Tarjetas de Crdito Nexus S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 25.81% | 25.81% | ||||
Investments in other companies | $ 13,781 | 16,805 | ||||
Book Value | 3,822 | 4,557 | ||||
Equity | 13,781 | 16,805 | ||||
Income (Loss) | $ 735 | $ 884 | ||||
Administrador Financiero del Transantiago S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 20.00% | 20.00% | ||||
Investments in other companies | $ 15,490 | 17,978 | ||||
Book Value | 3,098 | 3,680 | ||||
Equity | 15,490 | 17,978 | ||||
Income (Loss) | $ 582 | $ 317 | ||||
Redbanc S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 38.13% | 38.13% | ||||
Investments in other companies | $ 7,484 | 8,356 | ||||
Book Value | 2,894 | 3,219 | ||||
Equity | 7,484 | 8,356 | ||||
Income (Loss) | $ 325 | $ 403 | ||||
Centro de Compensacion Automatizado S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 33.33% | 33.33% | ||||
Investments in other companies | $ 4,696 | 5,592 | ||||
Book Value | 1,589 | 1,894 | ||||
Equity | 4,696 | 5,592 | ||||
Income (Loss) | $ 305 | $ 236 | ||||
Sociedad Imerc OTC S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 12.33% | 12.33% | ||||
Investments in other companies | $ 11,490 | 11,952 | ||||
Book Value | 1,417 | 1,474 | ||||
Equity | 11,490 | 11,952 | ||||
Income (Loss) | $ 56 | $ 66 | ||||
Sociedad Interbancaria de Depositos de Valores S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 26.81% | 26.81% | ||||
Investments in other companies | $ 3,659 | 4,161 | ||||
Book Value | 995 | 1,129 | ||||
Equity | 3,659 | 4,161 | ||||
Income (Loss) | $ 204 | $ 215 | ||||
Soc. Operadora de la Camara de Compensacion de Pagos de Alto Valor S.A. | ||||||
Associates and joint ventures | ||||||
Ownership Interest, Associates | 15.00% | 15.00% | ||||
Investments in other companies | $ 5,838 | 6,106 | ||||
Book Value | 908 | 944 | ||||
Equity | 5,838 | $ 6,106 | ||||
Income (Loss) | $ 58 | $ 66 |
Investments in Other Companie_3
Investments in Other Companies - Associates Statement of financial position (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) |
Associates | ||||
TOTAL ASSETS | $ 51,351,567 | $ 35,617,447 | $ 32,561,437 | $ 31,357,304 |
TOTAL LIABILITIES | 46,054,976 | 31,943,731 | 29,016,089 | $ 28,049,630 |
Equity | 5,296,590 | 3,673,715 | 3,545,347 | |
Minority interest | 1 | 1 | 1 | |
TOTAL LIABILITIES AND EQUITY | $ 51,351,567 | 35,617,447 | 32,561,437 | |
Associates | ||||
Associates | ||||
Current assets | 914,643 | 831,426 | ||
Non-current assets | 145,163 | 129,402 | ||
TOTAL ASSETS | 1,059,806 | 960,828 | ||
Current liabilities | 906,835 | 826,258 | ||
Non-current liabilities | 12,654 | 15,319 | ||
TOTAL LIABILITIES | 919,489 | 841,577 | ||
Equity | 140,308 | 119,242 | ||
Minority interest | 9 | 9 | ||
TOTAL LIABILITIES AND EQUITY | 1,059,806 | 960,828 | ||
Centro de Compensacion Automatizado S.A. | ||||
Associates | ||||
Current assets | 3,088 | 2,351 | ||
Non-current assets | 3,985 | 4,520 | ||
TOTAL ASSETS | 7,073 | 6,871 | ||
Current liabilities | 1,321 | 1,826 | ||
Non-current liabilities | 160 | 349 | ||
TOTAL LIABILITIES | 1,481 | 2,175 | ||
Equity | 5,592 | 4,696 | ||
TOTAL LIABILITIES AND EQUITY | 7,073 | 6,871 | ||
Soc. Operadora de la Camara de Compensacion de Pagos de Alto Valor S.A. | ||||
Associates | ||||
Current assets | 5,871 | 5,114 | ||
Non-current assets | 857 | 1,224 | ||
TOTAL ASSETS | 6,728 | 6,338 | ||
Current liabilities | 622 | 500 | ||
TOTAL LIABILITIES | 622 | 500 | ||
Equity | 6,106 | 5,838 | ||
TOTAL LIABILITIES AND EQUITY | 6,728 | 6,338 | ||
Sociedad Operadora de Tarjetas de Crdito Nexus S.A. | ||||
Associates | ||||
Current assets | 12,918 | 11,114 | ||
Non-current assets | 22,221 | 21,555 | ||
TOTAL ASSETS | 35,139 | 32,669 | ||
Current liabilities | 14,179 | 13,735 | ||
Non-current liabilities | 4,155 | 5,153 | ||
TOTAL LIABILITIES | 18,334 | 18,888 | ||
Equity | 16,805 | 13,781 | ||
TOTAL LIABILITIES AND EQUITY | 35,139 | 32,669 | ||
Sociedad Interbancaria de Depositos de Valores S.A. | ||||
Associates | ||||
Current assets | 153 | 51 | ||
Non-current assets | 4,239 | 3,669 | ||
TOTAL ASSETS | 4,392 | 3,720 | ||
Current liabilities | 231 | 61 | ||
TOTAL LIABILITIES | 231 | 61 | ||
Equity | 4,161 | 3,659 | ||
TOTAL LIABILITIES AND EQUITY | 4,392 | 3,720 | ||
Redbanc S.A. | ||||
Associates | ||||
Current assets | 6,084 | 6,371 | ||
Non-current assets | 14,741 | 14,864 | ||
TOTAL ASSETS | 20,825 | 21,235 | ||
Current liabilities | 9,907 | 8,702 | ||
Non-current liabilities | 2,562 | 5,049 | ||
TOTAL LIABILITIES | 12,469 | 13,751 | ||
Equity | 8,356 | 7,484 | ||
TOTAL LIABILITIES AND EQUITY | 20,825 | 21,235 | ||
Transbank S.A. | ||||
Associates | ||||
Current assets | 812,285 | 744,681 | ||
Non-current assets | 92,273 | 76,097 | ||
TOTAL ASSETS | 904,558 | 820,778 | ||
Current liabilities | 833,788 | 763,236 | ||
Non-current liabilities | 1,412 | 738 | ||
TOTAL LIABILITIES | 835,200 | 763,974 | ||
Equity | 69,358 | 56,804 | ||
TOTAL LIABILITIES AND EQUITY | 904,558 | 820,778 | ||
Administrador Financiero del Transantiago S.A. | ||||
Associates | ||||
Current assets | 55,402 | 50,474 | ||
Non-current assets | 416 | 830 | ||
TOTAL ASSETS | 55,818 | 51,304 | ||
Current liabilities | 36,676 | 34,896 | ||
Non-current liabilities | 1,164 | 918 | ||
TOTAL LIABILITIES | 37,840 | 35,814 | ||
Equity | 17,978 | 15,490 | ||
TOTAL LIABILITIES AND EQUITY | 55,818 | 51,304 | ||
Sociedad Imerc OTC S.A. | ||||
Associates | ||||
Current assets | 18,842 | 11,270 | ||
Non-current assets | 6,431 | 6,643 | ||
TOTAL ASSETS | 25,273 | 17,913 | ||
Current liabilities | 10,111 | 3,302 | ||
Non-current liabilities | 3,201 | 3,112 | ||
TOTAL LIABILITIES | 13,312 | 6,414 | ||
Equity | 11,952 | 11,490 | ||
Minority interest | 9 | 9 | ||
TOTAL LIABILITIES AND EQUITY | $ 25,273 | $ 17,913 |
Investments in Other Companie_4
Investments in Other Companies - Associates Revenue and profit (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Associates | ||||
Operating expenses | $ (1,208,414) | $ (838,156) | $ (784,356) | $ (787,047) |
Income (loss) before taxes | 1,100,637 | 763,402 | 687,442 | 675,263 |
Income taxes | (230,346) | (159,768) | (115,361) | (100,212) |
Income for the year | $ 870,291 | 603,634 | 572,081 | $ 575,051 |
Associates | ||||
Associates | ||||
Operating income | 293,407 | 274,504 | ||
Operating expenses | (270,999) | (255,387) | ||
Other income (expenses) | 5,936 | 2,803 | ||
Income (loss) before taxes | 28,344 | 21,920 | ||
Income taxes | (6,749) | (5,274) | ||
Income for the year | 21,595 | 16,646 | ||
Centro de Compensacion Automatizado S.A. | ||||
Associates | ||||
Operating income | 3,214 | 2,275 | ||
Operating expenses | (2,005) | (1,359) | ||
Other income (expenses) | (25) | |||
Income (loss) before taxes | 1,184 | 916 | ||
Income taxes | (268) | (208) | ||
Income for the year | 916 | 708 | ||
Soc. Operadora de la Camara de Compensacion de Pagos de Alto Valor S.A. | ||||
Associates | ||||
Operating income | 3,302 | 3,086 | ||
Operating expenses | (3,016) | (2,666) | ||
Other income (expenses) | 177 | 141 | ||
Income (loss) before taxes | 463 | 561 | ||
Income taxes | (79) | (122) | ||
Income for the year | 384 | 439 | ||
Sociedad Operadora de Tarjetas de Crdito Nexus S.A. | ||||
Associates | ||||
Operating income | 50,319 | 49,403 | ||
Operating expenses | (46,426) | (44,664) | ||
Other income (expenses) | (173) | (187) | ||
Income (loss) before taxes | 3,720 | 4,552 | ||
Income taxes | (870) | (1,125) | ||
Income for the year | 2,850 | 3,427 | ||
Sociedad Interbancaria de Depositos de Valores S.A. | ||||
Associates | ||||
Operating income | 1 | 9 | ||
Operating expenses | (35) | (33) | ||
Other income (expenses) | 796 | 826 | ||
Income (loss) before taxes | 762 | 802 | ||
Income for the year | 762 | 802 | ||
Redbanc S.A. | ||||
Associates | ||||
Operating income | 35,314 | 34,083 | ||
Operating expenses | (33,895) | (32,334) | ||
Other income (expenses) | (260) | (339) | ||
Income (loss) before taxes | 1,159 | 1,410 | ||
Income taxes | (308) | (354) | ||
Income for the year | 851 | 1,056 | ||
Transbank S.A. | ||||
Associates | ||||
Operating income | 191,568 | 175,975 | ||
Operating expenses | (177,440) | (167,052) | ||
Other income (expenses) | 2,380 | 1,625 | ||
Income (loss) before taxes | 16,508 | 10,548 | ||
Income taxes | (4,038) | (2,453) | ||
Income for the year | 12,470 | 8,095 | ||
Administrador Financiero del Transantiago S.A. | ||||
Associates | ||||
Operating income | 3,435 | 3,358 | ||
Operating expenses | (2,615) | (1,998) | ||
Other income (expenses) | 2,982 | 649 | ||
Income (loss) before taxes | 3,802 | 2,009 | ||
Income taxes | (894) | (426) | ||
Income for the year | 2,908 | 1,583 | ||
Sociedad Imerc OTC S.A. | ||||
Associates | ||||
Operating income | 6,254 | 6,315 | ||
Operating expenses | (5,567) | (5,281) | ||
Other income (expenses) | 59 | 88 | ||
Income (loss) before taxes | 746 | 1,122 | ||
Income taxes | (292) | (586) | ||
Income for the year | $ 454 | $ 536 |
Investments in Other Companie_5
Investments in Other Companies - Joint Ventures Statement of financial position (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)item | Dec. 31, 2017CLP ($) | Dec. 31, 2018CLP ($)item | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | |
Joint Ventures | |||||
Number of jointly controlled entities | item | 2 | 2 | |||
TOTAL ASSETS | $ 51,351,567 | $ 32,561,437 | $ 35,617,447 | $ 31,357,304 | |
TOTAL LIABILITIES | 46,054,976 | 29,016,089 | 31,943,731 | 28,049,630 | |
Equity | 5,296,591 | 3,545,348 | 3,673,716 | $ 3,307,674 | $ 3,175,325 |
TOTAL LIABILITIES AND EQUITY | $ 51,351,567 | $ 32,561,437 | 35,617,447 | ||
Servipag Ltda. | |||||
Joint Ventures | |||||
Ownership interest | 50.00% | 50.00% | |||
Current assets | $ 56,188 | 59,142 | |||
Non-current assets | 16,669 | 15,371 | |||
TOTAL ASSETS | 72,857 | 74,513 | |||
Current liabilities | 56,397 | 57,847 | |||
Non-current liabilities | 6,463 | 5,268 | |||
TOTAL LIABILITIES | 62,860 | 63,115 | |||
Equity | 9,997 | 11,398 | |||
TOTAL LIABILITIES AND EQUITY | $ 72,857 | 74,513 | |||
Artikos Chile S.A. | |||||
Joint Ventures | |||||
Ownership interest | 50.00% | 50.00% | |||
Current assets | $ 1,231 | 1,397 | |||
Non-current assets | 1,246 | 1,503 | |||
TOTAL ASSETS | 2,477 | 2,900 | |||
Current liabilities | 823 | 875 | |||
TOTAL LIABILITIES | 823 | 875 | |||
Equity | 1,654 | 2,025 | |||
TOTAL LIABILITIES AND EQUITY | $ 2,477 | $ 2,900 |
Investments in Other Companie_6
Investments in Other Companies - Joint Ventures Revenue and profit (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Joint Ventures | ||||
Operating expenses | $ (1,208,414) | $ (838,156) | $ (784,356) | $ (787,047) |
Profit before tax | 1,100,637 | 763,402 | 687,442 | 675,263 |
Tax income (expense) | (230,346) | (159,768) | (115,361) | (100,212) |
Profit for the year | $ 870,291 | 603,634 | 572,081 | $ 575,051 |
Servipag Ltda. | ||||
Joint Ventures | ||||
Operating income | 42,679 | 40,580 | ||
Operating expenses | (40,318) | (38,401) | ||
Other income (expenses) | (339) | (473) | ||
Profit before tax | 2,022 | 1,706 | ||
Tax income (expense) | (621) | (305) | ||
Profit for the year | 1,401 | 1,401 | ||
Artikos Chile S.A. | ||||
Joint Ventures | ||||
Operating income | 3,544 | 3,194 | ||
Operating expenses | (2,519) | (2,352) | ||
Other income (expenses) | 12 | 17 | ||
Profit before tax | 1,037 | 859 | ||
Tax income (expense) | 130 | 154 | ||
Profit for the year | $ 1,167 | $ 1,013 |
Investments in Other Companie_7
Investments in Other Companies - Unconsolidated structured entities (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Reconciliation of investments in unconsolidated companies | ||||
Balance at beginning of the period | $ 35,771 | $ 30,314 | $ 25,849 | |
Capital increase | 1,129 | |||
Participation in net income | $ 9,820 | 6,811 | 5,511 | 4,019 |
Dividends received | (593) | (411) | (484) | (667) |
Other | 81 | 430 | (16) | |
Balance at end of the period | $ 60,917 | 42,252 | 35,771 | $ 30,314 |
Impairment recognized | $ 0 | $ 0 |
Intangible Assets - Gross Balan
Intangible Assets - Gross Balance (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | $ 72,455 | $ 65,036 | ||
Intangible assets and goodwill at end of period | $ 123,228 | 85,471 | 72,455 | $ 65,036 |
Goodwill generated in the business combination | 16,714 | 16,714 | ||
Citibank Chile | ||||
Changes in intangible assets | ||||
Goodwill generated in the business combination | 12,576 | |||
Gross Balance | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 195,443 | 182,454 | 172,963 | |
Acquisitions | 23,512 | 18,779 | 11,248 | |
Disposals | (1,024) | (5,790) | (1,757) | |
Intangible assets and goodwill at end of period | 217,931 | 195,443 | 182,454 | |
Goodwill | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 16,714 | 16,714 | ||
Intangible assets and goodwill at end of period | 16,714 | 16,714 | 16,714 | |
Goodwill | Gross Balance | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 16,714 | 16,714 | 16,714 | |
Intangible assets and goodwill at end of period | 16,714 | 16,714 | 16,714 | |
Intangible assets arising from business combinations | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 16,696 | 18,981 | ||
Intangible assets and goodwill at end of period | 16,696 | 16,696 | 18,981 | |
Intangible assets arising from business combinations | Gross Balance | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 56,249 | 56,249 | 56,249 | |
Intangible assets and goodwill at end of period | 56,249 | 56,249 | 56,249 | |
Software or computer programs | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 39,045 | 29,341 | ||
Intangible assets and goodwill at end of period | 52,061 | 39,045 | 29,341 | |
Software or computer programs | Gross Balance | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 122,480 | 109,491 | 100,000 | |
Acquisitions | 23,512 | 18,779 | 11,248 | |
Disposals | (1,024) | (5,790) | (1,757) | |
Intangible assets and goodwill at end of period | $ 144,968 | $ 122,480 | $ 109,491 |
Intangible Assets - Accumulated
Intangible Assets - Accumulated Amortization (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | $ 72,455 | $ 65,036 | ||
Amortisation for the year | (10,496) | (11,360) | $ (10,881) | |
Intangible assets and goodwill at end of period | $ 123,228 | 85,471 | 72,455 | 65,036 |
Accumulated Amortization | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | (122,988) | (117,418) | (108,263) | |
Amortisation for the year | (10,496) | (11,360) | (10,881) | |
Disposals | 1,024 | 5,790 | 1,726 | |
Intangible assets and goodwill at end of period | (132,460) | (122,988) | (117,418) | |
Goodwill | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 16,714 | 16,714 | ||
Intangible assets and goodwill at end of period | 16,714 | 16,714 | 16,714 | |
Intangible assets arising from business combinations | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 16,696 | 18,981 | ||
Intangible assets and goodwill at end of period | 16,696 | 16,696 | 18,981 | |
Intangible assets arising from business combinations | Accumulated Amortization | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | (39,553) | (37,268) | (34,982) | |
Amortisation for the year | (2,285) | (2,286) | ||
Intangible assets and goodwill at end of period | (39,553) | (39,553) | (37,268) | |
Software or computer programs | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | 39,045 | 29,341 | ||
Intangible assets and goodwill at end of period | 52,061 | 39,045 | 29,341 | |
Software or computer programs | Accumulated Amortization | ||||
Changes in intangible assets | ||||
Intangible assets and goodwill at beginning of period | (83,435) | (80,150) | (73,281) | |
Amortisation for the year | (10,496) | (9,075) | (8,595) | |
Disposals | 1,024 | 5,790 | 1,726 | |
Intangible assets and goodwill at end of period | $ (92,907) | $ (83,435) | $ (80,150) |
Intangible Assets - Commitments
Intangible Assets - Commitments for technological developments (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Software or computer programs | ||
Intangible assets | ||
Amount of Commitment | $ 11,806 | $ 5,129 |
Intangible Assets - Individual
Intangible Assets - Individual Business Segments (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018CLP ($)item | Dec. 31, 2017CLP ($) | |
Intangible assets | ||
Number of business segments | item | 4 | |
Goodwill | $ 16,714 | $ 16,714 |
Retail | ||
Intangible assets | ||
Goodwill | 5,928 | 5,928 |
Wholesale | ||
Intangible assets | ||
Goodwill | 2,135 | 2,135 |
Treasury and money market operations | ||
Intangible assets | ||
Goodwill | 4,513 | 4,513 |
Subsidiaries | ||
Intangible assets | ||
Goodwill | $ 4,138 | $ 4,138 |
Intangible Assets - Goodwill Im
Intangible Assets - Goodwill Impairment (Details) - Goodwill - Discounted cash flow | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets | |
Earnings projections period for goodwill impairment testing | 10 years |
Current loan expansion multiplier | 1.9 |
Assumed market share percentage at year six and onwards | 17.80% |
Long-run cash flows growth rate in baseline scenario | 4.50% |
Discount rate (real terms) percentage computed by using CAPM | 9.00% |
Discount rate was computed by using CAPM | 8.40% |
Bank sensitivity analysed discounts rates one | 8.00% |
Bank sensitivity analysed discounts rates two | 10.00% |
Property and Equipment - Cost (
Property and Equipment - Cost (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | $ 216,259 | |||
Impairment loss | (334) | $ (166) | $ (274) | |
Property, plant and equipment at end of period | $ 311,234 | 215,872 | 216,259 | |
Gross Balance | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | 548,349 | 532,913 | ||
Additions | 28,065 | 23,224 | ||
Disposals/write-downs/sales | (18,775) | (7,785) | ||
Accumulated depreciation (see (a.2)) | (341,433) | (332,090) | ||
Impairment loss | (334) | (3) | ||
Property, plant and equipment after considering accumulated depreciation | 215,872 | 216,259 | ||
Property, plant and equipment at end of period | 548,349 | 532,913 | ||
Gross Balance | Land and Buildings | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | 311,428 | 302,187 | ||
Additions | 12,589 | 10,606 | ||
Disposals/write-downs/sales | (3,145) | (1,365) | ||
Accumulated depreciation (see (a.2)) | (150,099) | (142,768) | ||
Impairment loss | (287) | |||
Property, plant and equipment after considering accumulated depreciation | 170,486 | 168,660 | ||
Property, plant and equipment at end of period | 311,428 | 302,187 | ||
Gross Balance | Equipment | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | 184,369 | 180,322 | ||
Additions | 12,702 | 8,898 | ||
Disposals/write-downs/sales | (13,845) | (4,851) | ||
Accumulated depreciation (see (a.2)) | (148,455) | (148,006) | ||
Impairment loss | (6) | |||
Property, plant and equipment after considering accumulated depreciation | 34,765 | 36,363 | ||
Property, plant and equipment at end of period | 184,369 | 180,322 | ||
Gross Balance | Other | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | 52,552 | 50,404 | ||
Additions | 2,774 | 3,720 | ||
Disposals/write-downs/sales | (1,785) | (1,569) | ||
Accumulated depreciation (see (a.2)) | (42,879) | (41,316) | ||
Impairment loss | (41) | (3) | ||
Property, plant and equipment after considering accumulated depreciation | $ 10,621 | 11,236 | ||
Property, plant and equipment at end of period | $ 52,552 | $ 50,404 |
Property and Equipment - Accumu
Property and Equipment - Accumulated Depreciation (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | $ 216,259 | |||
Property, plant and equipment at end of period | $ 311,234 | 215,872 | $ 216,259 | |
Additional information | ||||
Depreciation on Investment Properties | 368 | 368 | $ 368 | |
Charge-off provisions for Property and Equipment | 163 | |||
Accumulated depreciation | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | (332,090) | (313,831) | ||
Depreciation charges in the period | (26,817) | (25,808) | ||
Sales and disposals in the period | 17,474 | 7,549 | ||
Property, plant and equipment at end of period | (341,433) | (332,090) | (313,831) | |
Accumulated depreciation | Land and Buildings | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | (142,768) | (134,900) | ||
Depreciation charges in the period | (9,193) | (9,040) | ||
Sales and disposals in the period | 1,862 | 1,172 | ||
Property, plant and equipment at end of period | (150,099) | (142,768) | (134,900) | |
Accumulated depreciation | Equipment | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | (148,006) | (139,277) | ||
Depreciation charges in the period | (14,291) | (13,723) | ||
Sales and disposals in the period | 13,842 | 4,851 | ||
Transfers | 143 | |||
Property, plant and equipment at end of period | (148,455) | (148,006) | (139,277) | |
Accumulated depreciation | Other | ||||
Reconciliation of changes in Property and equipment | ||||
Property, plant and equipment at beginning of period | (41,316) | (39,654) | ||
Depreciation charges in the period | (3,333) | (3,045) | ||
Sales and disposals in the period | 1,770 | 1,526 | ||
Transfers | (143) | |||
Property, plant and equipment at end of period | $ (42,879) | $ (41,316) | $ (39,654) |
Property and Equipment - Operat
Property and Equipment - Operating Leases (Details) - CLP ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating lease agreements | ||
Expenses for the year | $ 34,773,000,000 | $ 33,017,000,000 |
Lease agreement payments | $ 133,905,000,000 | 145,829,000,000 |
Average life | 5 years | |
Amount of property and equipment reported from financial lease agreements as lessee | $ 0 | 0 |
Fully depreciated assets | 219,355,000,000 | 225,641,000,000 |
Up to 1 month | ||
Operating lease agreements | ||
Lease agreement payments | 2,929,000,000 | 2,764,000,000 |
Between 1 and 3 months | ||
Operating lease agreements | ||
Lease agreement payments | 5,828,000,000 | 5,522,000,000 |
Between 3 and 12 months | ||
Operating lease agreements | ||
Lease agreement payments | 23,578,000,000 | 23,462,000,000 |
Due after 1 years but within 3 years | ||
Operating lease agreements | ||
Lease agreement payments | 46,143,000,000 | 45,891,000,000 |
Due after 3 years but within 5 years | ||
Operating lease agreements | ||
Lease agreement payments | 28,730,000,000 | 33,789,000,000 |
Due after 5 years | ||
Operating lease agreements | ||
Lease agreement payments | $ 26,697,000,000 | $ 34,401,000,000 |
Investment Properties (Details)
Investment Properties (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Reconciliation of changes in investment properties | ||||
Investment property at beginning of period | $ 14,306 | $ 14,674 | $ 15,042 | |
Depreciation charges in the period | (368) | (368) | (368) | |
Investment property at end of period | $ 20,095 | 13,938 | 14,306 | $ 14,674 |
Income earned from renting out investment properties | 6,265 | 5,844 | ||
Expenses incurred for investment properties | 2,806 | 2,794 | ||
Fair value | ||||
Reconciliation of changes in investment properties | ||||
Investment property at beginning of period | 42,230 | |||
Investment property at end of period | $ 46,562 | $ 42,230 |
Current Taxes and Deferred Ta_3
Current Taxes and Deferred Taxes - Current Taxes (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Taxes and Deferred Taxes | ||
Income taxes | $ 150,798 | $ 108,844 |
Monthly prepaid taxes (PPM) | (126,917) | (123,717) |
Credit for training expenses | (2,224) | (2,036) |
Other | (1,410) | (2,670) |
Total tax receivable (payable), net | $ 20,247 | $ (19,579) |
Current Taxes and Deferred Ta_4
Current Taxes and Deferred Taxes - Total Tax Receivable (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Current Taxes and Deferred Taxes | |||
Current tax assets | $ 976 | $ 677 | $ 23,032 |
Current tax liabilities | $ (30,167) | (20,924) | (3,453) |
Total tax receivable (payable), net | $ (20,247) | $ 19,579 |
Current Taxes and Deferred Ta_5
Current Taxes and Deferred Taxes - Income Tax (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax expense: | ||||||
Current year taxes | $ 159,153 | $ 105,024 | $ 134,759 | |||
Tax from previous period | 2,574 | (1,401) | 1,030 | |||
Subtotal | 161,727 | 103,623 | 135,789 | |||
(Credit) charge for deferred taxes: | ||||||
Origin and reversal of temporary differences | (4,582) | 20,043 | (26,044) | |||
Effect of changes in tax rate | (5,729) | (9,158) | ||||
Subtotal | (4,582) | 14,314 | (35,202) | |||
Other | 2,623 | (2,576) | (375) | |||
Total tax expense (income) | $ 230,346 | $ 159,768 | $ 115,361 | $ 100,212 | ||
Tax Rate | 27.00% | 27.00% | 25.50% | 24.00% | 22.50% | 21.00% |
Current Taxes and Deferred Ta_6
Current Taxes and Deferred Taxes - Reconciliation of effective tax rate (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax rate % | ||||||
Income tax calculated on net income before tax (as a percent) | 27.00% | 27.00% | 25.50% | 24.00% | 22.50% | 21.00% |
Subordinated Debt Payment (as a percent) | (3.21%) | (3.21%) | (5.67%) | (5.05%) | ||
Additions or deductions (as a percent) | (4.18%) | (4.18%) | (2.88%) | (3.90%) | ||
Tax from previous years (as a percent) | 0.34% | 0.34% | (0.20%) | 0.15% | ||
Effect of changes in tax rate (as a percent) | (0.83%) | (1.36%) | ||||
Other (as a percent) | 0.98% | 0.98% | 0.87% | 1.00% | ||
Effective rate and income tax expense (as a percent) | 20.93% | 20.93% | 16.79% | 14.84% | ||
Credit to Income for tax rate change | ||||||
Income tax calculated on net income before tax | $ 206,116 | $ 175,298 | $ 162,063 | |||
Subordinated Debt Payment | (24,515) | (38,997) | (34,092) | |||
Additions or deductions | (31,894) | (19,794) | (26,332) | |||
Tax from previous years | 2,574 | (1,401) | 1,030 | |||
Effect of changes in tax rate | (5,729) | (9,158) | ||||
Other | 7,487 | 5,984 | 6,701 | |||
Total tax expense (income) | $ 230,346 | $ 159,768 | $ 115,361 | $ 100,212 | ||
First category tax percentage | 65 | 65 | ||||
Non-deductible expenses tax rate | 40.00% | 40.00% | 35.00% |
Current Taxes and Deferred Ta_7
Current Taxes and Deferred Taxes - Effect of deferred taxes on income and equity (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | $ 184,465 | $ 176,923 |
Income effect | 4,582 | (14,314) |
Equity effect | 3,793 | (1,344) |
Deferred tax liability (asset) at end of period | 192,840 | 161,265 |
Total debit differences | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 227,051 | 220,564 |
Income effect | 7,929 | (16,669) |
Equity effect | 1,401 | (44) |
Deferred tax liability (asset) at end of period | 236,381 | 203,851 |
Allowances for loan losses | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 138,643 | 127,719 |
Income effect | 3,232 | (12,276) |
Deferred tax liability (asset) at end of period | 141,875 | 115,443 |
Personnel provisions | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 12,521 | 11,231 |
Income effect | 756 | 1,290 |
Deferred tax liability (asset) at end of period | 13,277 | 12,521 |
Staff vacations | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 6,908 | 6,674 |
Income effect | 333 | 234 |
Deferred tax liability (asset) at end of period | 7,241 | 6,908 |
Accrued interest and indexation adjustments from past due loans | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 3,414 | 3,355 |
Income effect | (182) | 59 |
Deferred tax liability (asset) at end of period | 3,232 | 3,414 |
Staff severance indemnities provision | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 1,457 | 1,854 |
Income effect | (8) | (352) |
Equity effect | 35 | (45) |
Deferred tax liability (asset) at end of period | 1,484 | 1,457 |
Provisions of credit card expenses | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 8,955 | 12,459 |
Income effect | 858 | (3,504) |
Deferred tax liability (asset) at end of period | 9,813 | 8,955 |
Provisions of accrued expenses | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 16,358 | 14,489 |
Income effect | (3,203) | 1,869 |
Deferred tax liability (asset) at end of period | 13,155 | 16,358 |
Derivative instruments adjustments | ||
Effect of deferred taxes on income and equity | ||
Income effect | 1,356 | |
Deferred tax liability (asset) at end of period | 1,356 | |
Adjustment for valuation and impairment of financial assets at fair value through OCI | ||
Effect of deferred taxes on income and equity | ||
Income effect | (419) | |
Equity effect | 1,365 | |
Deferred tax liability (asset) at end of period | 946 | |
Leasing | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 32,549 | 37,119 |
Income effect | 10,439 | (4,570) |
Deferred tax liability (asset) at end of period | 42,988 | 32,549 |
Other adjustments | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 6,246 | 5,664 |
Income effect | (5,233) | 581 |
Equity effect | 1 | 1 |
Deferred tax liability (asset) at end of period | 1,014 | 6,246 |
Total credit differences | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 42,586 | 43,641 |
Income effect | 3,347 | (2,355) |
Equity effect | (2,392) | 1,300 |
Deferred tax liability (asset) at end of period | 43,541 | 42,586 |
Depreciation of property and equipment and investment properties | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 14,281 | 11,815 |
Income effect | 709 | 2,466 |
Deferred tax liability (asset) at end of period | 14,990 | 14,281 |
Adjustment for valuation and impairment of financial assets at fair value through OCI | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 2,392 | 1,092 |
Income effect | 1 | |
Equity effect | (2,392) | 1,299 |
Deferred tax liability (asset) at end of period | 2,392 | |
Transitory assets | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 5,486 | 4,772 |
Income effect | 28 | 714 |
Deferred tax liability (asset) at end of period | 5,514 | 5,486 |
Derivative instruments adjustments | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 4,378 | 7,707 |
Income effect | (4,378) | (3,329) |
Deferred tax liability (asset) at end of period | 4,378 | |
Accrued interest to effective rate | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 1,603 | 2,247 |
Income effect | (39) | (644) |
Deferred tax liability (asset) at end of period | 1,564 | 1,603 |
Advance payment of lump-sum under union contracts | ||
Effect of deferred taxes on income and equity | ||
Income effect | 6,699 | |
Deferred tax liability (asset) at end of period | 6,699 | |
Intangible assets amortization | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 5,503 | 6,090 |
Income effect | (587) | |
Deferred tax liability (asset) at end of period | 5,503 | 5,503 |
Other adjustments | ||
Effect of deferred taxes on income and equity | ||
Deferred tax liability (asset) at beginning of period | 8,943 | 9,918 |
Income effect | 328 | (976) |
Equity effect | 1 | |
Deferred tax liability (asset) at end of period | $ 9,271 | $ 8,943 |
Other Assets (Details)
Other Assets (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Other Assets | |||
Deposit by derivatives margin | $ 336,548 | $ 174,254 | |
Assets held for leasing | 101,848 | 127,979 | |
Recoverable income taxes | 44,665 | 20,437 | |
Prepaid expenses | 37,394 | 12,180 | |
Other accounts and notes receivable | 29,080 | 99,201 | |
Documents intermediated | 28,478 | 32,593 | |
Assets received or awarded as payment: | |||
Assets received in lieu of payment | 24,871 | 19,905 | |
Provisions for assets received in lieu of payment | (1,915) | (1,532) | |
Commissions receivable | 12,155 | 6,387 | |
Accounts receivable for sale of assets received in lieu of payment | 4,816 | 3,353 | |
Rental guarantees | 1,895 | 1,849 | |
VAT receivable | 1,302 | ||
Recovered leased assets for sale | 1,064 | 3,053 | |
Mutual funds | 78,069 | ||
Other | 29,490 | 27,072 | |
Total | $ 939,577 | $ 651,691 | $ 604,800 |
Current Accounts and Other De_3
Current Accounts and Other Demand Deposits (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Current Accounts and Other Demand Deposits | |||
Current accounts | $ 7,725,465 | $ 7,200,050 | |
Other demand deposits | 1,143,414 | 1,081,223 | |
Other deposits and accounts | 715,609 | 634,433 | |
Total | $ 13,818,466 | $ 9,584,488 | $ 8,915,706 |
Saving Accounts and Time Depo_3
Saving Accounts and Time Deposits (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Saving Accounts and Time Deposits | |||
Time deposits | $ 10,343,922 | $ 9,743,968 | |
Term savings accounts | 224,303 | 214,120 | |
Other term balances payable | 87,949 | 109,690 | |
Total | $ 15,363,573 | $ 10,656,174 | $ 10,067,778 |
Borrowings from Financial Ins_3
Borrowings from Financial Institutions (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Borrowings from Financial Institutions | |||
Domestic banks - inter-bank loans | $ 7,001 | $ 1,100 | |
Domestic banks - current account overdrafts | 374 | ||
Total borrowings from domestic banks | 7,375 | 1,100 | |
Foreign banks - trade financing - Chilean export financing | 1,354,943 | 1,064,435 | |
Foreign banks - trade financing - Chilean import financing | 31,523 | 23,064 | |
Foreign banks - borrowings and other obligations - current account overdrafts | 18,283 | 13,745 | |
Foreign banks - borrowings and other obligations - long term borrowings | 104,635 | 92,683 | |
Total borrowings from foreign banks | 1,509,384 | 1,193,927 | |
Chilean Central Bank - borrowings and other obligations - debt reprogramming credit lines | 1 | ||
Total borrowings from Chilean Central Bank | 1 | ||
Total Borrowings from Financial Institutions | $ 2,186,792 | $ 1,516,759 | $ 1,195,028 |
Debt Issued (Details)
Debt Issued (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2018CLP ($) | |
Debt Issued | |||
Debt issued | $ 10,777,901 | $ 6,488,975 | $ 7,475,552 |
Notional amount | 163,654 | 132,441 | |
Mortgage bonds | |||
Debt Issued | |||
Debt issued | 23,424 | 16,368 | |
Bonds | |||
Debt Issued | |||
Debt issued | 5,769,334 | 6,772,990 | |
Notional amount | 1,399,001 | 2,157,587 | |
Unsubordinated bonds | |||
Debt Issued | |||
Notional amount | 590,052 | 1,216,867 | |
Commercial paper | |||
Debt Issued | |||
Debt issued | 0 | 0 | |
Notional amount | 808,949 | 940,720 | |
Subordinated bonds | |||
Debt Issued | |||
Debt issued | 696,217 | 686,194 | |
CLF | |||
Debt Issued | |||
Notional amount | 426,398 | 1,084,426 | |
CLF | Series BCHIBQ0915 unsubordinated bonds issued on 20/01/2017 maturing on 20/01/2030 | |||
Debt Issued | |||
Notional amount | $ 58,643 | ||
Term (in years) | 13 years | ||
Annual Rate (in percentage) | 3.00% | ||
CLF | Series BCHIBH0915 unsubordinated bonds issued on 1/2/2017 maturing on 1/2/2026 | |||
Debt Issued | |||
Notional amount | $ 56,338 | ||
Term (in years) | 9 years | ||
Annual Rate (in percentage) | 2.70% | ||
CLF | Series BCHIBP1215 unsubordinated bonds issued on 6/3/2017 maturing on 6/3/2030 | |||
Debt Issued | |||
Notional amount | $ 58,157 | ||
Term (in years) | 13 years | ||
Annual Rate (in percentage) | 3.00% | ||
CLF | Series BCHIBC1215 unsubordinated bonds issued on 6/3/2017 maturing on 6/3/2023 | |||
Debt Issued | |||
Notional amount | $ 30,544 | ||
Term (in years) | 6 years | ||
Annual Rate (in percentage) | 2.50% | ||
CLF | Series BCHIBC1215 unsubordinated bonds issued on 7/3/2017 maturing on 7/3/2023 | |||
Debt Issued | |||
Notional amount | $ 5,554 | ||
Term (in years) | 6 years | ||
Annual Rate (in percentage) | 2.50% | ||
CLF | Series BCHIBC1215 unsubordinated bonds issued on 12/4/2017 maturing on 12/4/2023 | |||
Debt Issued | |||
Notional amount | $ 19,600 | ||
Term (in years) | 6 years | ||
Annual Rate (in percentage) | 2.50% | ||
CLF | Series BCHIBG1115 unsubordinated bonds issued on 9/5/2017 maturing on 9/5/2026 | |||
Debt Issued | |||
Notional amount | $ 85,115 | ||
Term (in years) | 9 years | ||
Annual Rate (in percentage) | 2.70% | ||
CLF | Series BCHIBE1115 unsubordinated bonds issued on 16/10/2017 maturing on 16/10/2024 | |||
Debt Issued | |||
Notional amount | $ 55,097 | ||
Term (in years) | 7 years | ||
Annual Rate (in percentage) | 2.70% | ||
CLF | Series BCHIBR1215 unsubordinated bonds issued on 17/11/2017 maturing on 17/11/2030 | |||
Debt Issued | |||
Notional amount | $ 57,350 | ||
Term (in years) | 13 years | ||
Annual Rate (in percentage) | 3.00% | ||
CLF | Series BCHIEA0617 unsubordinated bonds issued on 03/01/2018, maturing on 03/01/2024 | |||
Debt Issued | |||
Notional amount | $ 106,001 | ||
Term (in years) | 6 years | ||
Annual Rate (in percentage) | 1.60% | 1.60% | |
CLF | Series BCHIBN1015 unsubordinated bonds issued on 24/01/2018, maturing on 24/01/2030 | |||
Debt Issued | |||
Notional amount | $ 114,212 | ||
Term (in years) | 12 years | ||
Annual Rate (in percentage) | 2.90% | 2.90% | |
CLF | Series BCHIEF1117 unsubordinated Bonds issued on 09/02/2018, maturity on 09/02/2026 | |||
Debt Issued | |||
Notional amount | $ 79,612 | ||
Term (in years) | 8 years | ||
Annual Rate (in percentage) | 1.80% | 1.80% | |
CLF | Series BCHIEP0717 unsubordinated bonds issued on 13/02/2018, maturity 13/02/2029 | |||
Debt Issued | |||
Notional amount | $ 104,550 | ||
Term (in years) | 11 years | ||
Annual Rate (in percentage) | 2.00% | 2.00% | |
CLF | Series BCHIBT1215 unsubordinated bonds issued on 13/03/2018, maturity on 13/03/2032 | |||
Debt Issued | |||
Notional amount | $ 57,936 | ||
Term (in years) | 14 years | ||
Annual Rate (in percentage) | 3.00% | 3.00% | |
CLF | Series BCHIBW1215 unsubordinated bonds issued on 14/08/2018, maturity on 14/08/2032 | |||
Debt Issued | |||
Notional amount | $ 59,081 | ||
Term (in years) | 14 years | ||
Annual Rate (in percentage) | 2.20% | 2.20% | |
CLF | Series BCHIDY0917 unsubordinated bonds issued on 16/08/2018, maturity on 16/08/2023 | |||
Debt Issued | |||
Notional amount | $ 55,619 | ||
Term (in years) | 5 years | ||
Annual Rate (in percentage) | 1.24% | 1.24% | |
CLF | Series BCHIEN1117 unsubordinated bonds issued on 25/09/2018, maturity on 25/09/2028 | |||
Debt Issued | |||
Notional amount | $ 109,543 | ||
Term (in years) | 10 years | ||
Annual Rate (in percentage) | 2.08% | 2.08% | |
CLF | Series BCHIDX0817 unsubordinated bonds issued on 22/10/2018, maturity on 22/10/2023 | |||
Debt Issued | |||
Notional amount | $ 109,311 | ||
Term (in years) | 5 years | ||
Annual Rate (in percentage) | 1.70% | 1.70% | |
CLF | Series BCHIDY0917 unsubordinated bonds issued on 22/10/2018, maturity on 22/10/2023 | |||
Debt Issued | |||
Notional amount | $ 12,025 | ||
Term (in years) | 5 years | ||
Annual Rate (in percentage) | 1.74% | 1.74% | |
CLF | Series BCHIDY0917 unsubordinated bonds issued on 22/10/2018, maturity on 22/10/2023 | |||
Debt Issued | |||
Notional amount | $ 15,299 | ||
Term (in years) | 5 years | ||
Annual Rate (in percentage) | 1.75% | 1.75% | |
CLF | Series BCHIBY1215 unsubordinated bonds issued on 24/10/2018, maturity on 22/10/2023 | |||
Debt Issued | |||
Notional amount | $ 59,374 | ||
Term (in years) | 15 years | ||
Annual Rate (in percentage) | 2.29% | 2.29% | |
CLF | Series BCHIBX0815 unsubordinated bonds issued on 24/10/2018, maturity on 24/10/2033 | |||
Debt Issued | |||
Notional amount | $ 58,998 | ||
Term (in years) | 15 years | ||
Annual Rate (in percentage) | 2.29% | 2.29% | |
CLF | Series BCHIBZ0815 unsubordinated bonds issued on 07/12/2018, maturity on 07/12/2033 | |||
Debt Issued | |||
Notional amount | $ 59,987 | ||
Term (in years) | 15 years | ||
Annual Rate (in percentage) | 2.23% | 2.23% | |
CLF | Series BCHIEJ0717 unsubordinated bonds issued on 12/12/2018, maturity on 12/12/2027 | |||
Debt Issued | |||
Notional amount | $ 82,878 | ||
Term (in years) | 9 years | ||
Annual Rate (in percentage) | 1.99% | 1.99% | |
CLP | Series BCHID0916 unsubordinated bonds issued on 11/06/2018, maturity on 11/06/2022 | |||
Debt Issued | |||
Notional amount | $ 20,370 | ||
Term (in years) | 4 years | ||
Annual Rate (in percentage) | 3.80% | 3.80% | |
USD | Series BONO USD unsubordinated bonds issued on 20/12/2017 maturing on 20/12/2037 | |||
Debt Issued | |||
Notional amount | $ 71,366 | ||
Term (in years) | 20 years | ||
USD | Series BONO USD unsubordinated bonds issued on 28/09/2018, maturity on 28/09/2028 | |||
Debt Issued | |||
Notional amount | $ 32,842 | ||
Term (in years) | 10 years | ||
Annual Rate (in percentage) | 4.26% | 4.26% | |
USD | Citibank N.A. commercial papers issued on 5/1/2017 matured on 5/6/2017 | |||
Debt Issued | |||
Notional amount | $ 13,223 | ||
Annual Rate (in percentage) | 1.37% | ||
USD | Wells Fargo Bank commercial papers issued on 6/1/2017 matured on 3/7/2017 | |||
Debt Issued | |||
Notional amount | $ 16,702 | ||
Annual Rate (in percentage) | 1.50% | ||
USD | Wells Fargo Bank commercial papers issued on 6/1/2017 matured on 5/7/2017 | |||
Debt Issued | |||
Notional amount | $ 6,681 | ||
Annual Rate (in percentage) | 1.48% | ||
USD | Wells Fargo Bank commercial papers issued on 6/1/2017 matured on 5/6/2017 | |||
Debt Issued | |||
Notional amount | $ 3,340 | ||
Annual Rate (in percentage) | 1.38% | ||
USD | Wells Fargo Bank commercial papers issued on 6/1/2017 matured on 8/5/2017 | |||
Debt Issued | |||
Notional amount | $ 3,340 | ||
Annual Rate (in percentage) | 1.27% | ||
USD | Wells Fargo Bank commercial papers issued on 6/1/2017 matured on 6/4/2017 | |||
Debt Issued | |||
Notional amount | $ 3,340 | ||
Annual Rate (in percentage) | 1.17% | ||
USD | Wells Fargo Bank commercial papers issued on 9/1/2017 matured on 10/4/2017 | |||
Debt Issued | |||
Notional amount | $ 24,906 | ||
Annual Rate (in percentage) | 1.20% | ||
USD | Wells Fargo Bank commercial papers issued on 9/1/2017 matured on 10/7/2017 | |||
Debt Issued | |||
Notional amount | $ 671 | ||
Annual Rate (in percentage) | 1.47% | ||
USD | Citibank N.A. commercial papers issued on 9/1/2017 matured on 28/07/2017 | |||
Debt Issued | |||
Notional amount | $ 2,685 | ||
Annual Rate (in percentage) | 1.47% | ||
USD | Citibank N.A. commercial papers issued on 9/1/2017 matured on 12/5/2017 | |||
Debt Issued | |||
Notional amount | $ 67,131 | ||
Annual Rate (in percentage) | 1.27% | ||
USD | Wells Fargo Bank commercial papers issued on 10/1/2017 matured on 9/6/2017 | |||
Debt Issued | |||
Notional amount | $ 20,105 | ||
Annual Rate (in percentage) | 1.36% | ||
USD | Bofa Merrill Lynch commercial papers issued on 10/1/2017 matured on 9/6/2017 | |||
Debt Issued | |||
Notional amount | $ 16,754 | ||
Annual Rate (in percentage) | 1.35% | ||
USD | Wells Fargo Bank commercial papers issued on 13/01/2017 matured on 12/5/2017 | |||
Debt Issued | |||
Notional amount | $ 1,318 | ||
Annual Rate (in percentage) | 1.23% | ||
USD | Wells Fargo Bank commercial papers issued on 13/01/2017 matured on 12/7/2017 | |||
Debt Issued | |||
Notional amount | $ 3,295 | ||
Annual Rate (in percentage) | 1.43% | ||
USD | Bofa Merrill Lynch commercial papers issued on 7/2/2017 matured on 6/2/2018-1 | |||
Debt Issued | |||
Notional amount | $ 3,884 | ||
Annual Rate (in percentage) | 1.70% | ||
USD | Bofa Merrill Lynch commercial papers issued on 7/2/2017 matured on 6/2/2018-2 | |||
Debt Issued | |||
Notional amount | $ 4,531 | ||
Annual Rate (in percentage) | 1.70% | ||
USD | Bofa Merrill Lynch commercial papers issued on 8/2/2017 matured on 7/2/2018 | |||
Debt Issued | |||
Notional amount | $ 11,017 | ||
Annual Rate (in percentage) | 1.70% | ||
USD | Wells Fargo Bank commercial papers issued on 10/2/2017 matured on 1/9/2017 | |||
Debt Issued | |||
Notional amount | $ 12,797 | ||
Annual Rate (in percentage) | 1.40% | ||
USD | Wells Fargo Bank commercial papers issued on 10/2/2017 matured on 11/9/2017 | |||
Debt Issued | |||
Notional amount | $ 19,196 | ||
Annual Rate (in percentage) | 1.40% | ||
USD | Wells Fargo Bank commercial papers issued on 13/02/2017 matured on 12/2/2018 | |||
Debt Issued | |||
Notional amount | $ 19,284 | ||
Annual Rate (in percentage) | 1.70% | ||
USD | Wells Fargo Bank commercial papers issued on 13/02/2017 matured on 14/08/2017 | |||
Debt Issued | |||
Notional amount | $ 1,607 | ||
Annual Rate (in percentage) | 1.32% | ||
USD | Citibank N.A. commercial papers issued on 15/02/2017 matured on 15/05/2017 | |||
Debt Issued | |||
Notional amount | $ 10,992 | ||
Annual Rate (in percentage) | 1.04% | ||
USD | Citibank N.A. commercial papers issued on 15/02/2017 matured on 15/08/2017-1 | |||
Debt Issued | |||
Notional amount | $ 15,977 | ||
Annual Rate (in percentage) | 1.34% | ||
USD | Citibank N.A. commercial papers issued on 15/02/2017 matured on 15/08/2017-2 | |||
Debt Issued | |||
Notional amount | $ 4,474 | ||
Annual Rate (in percentage) | 1.34% | ||
USD | Citibank N.A. commercial papers issued on 16/02/2017 matured on 8/9/2017 | |||
Debt Issued | |||
Notional amount | $ 4,471 | ||
Annual Rate (in percentage) | 1.35% | ||
USD | Wells Fargo Bank commercial papers issued on 21/03/2017 matured on 29/09/2017 | |||
Debt Issued | |||
Notional amount | $ 9,885 | ||
Annual Rate (in percentage) | 1.40% | ||
USD | Bofa Merrill Lynch commercial papers issued on 24/03/2017 matured on 23/06/2017-1 | |||
Debt Issued | |||
Notional amount | $ 33,024 | ||
Annual Rate (in percentage) | 1.16% | ||
USD | Bofa Merrill Lynch commercial papers issued on 24/03/2017 matured on 23/06/2017-2 | |||
Debt Issued | |||
Notional amount | $ 26,419 | ||
Annual Rate (in percentage) | 1.16% | ||
USD | Bofa Merrill Lynch commercial papers issued on 30/03/2017 matured on 27/09/2017 | |||
Debt Issued | |||
Notional amount | $ 33,165 | ||
Annual Rate (in percentage) | 1.42% | ||
USD | Wells Fargo Bank commercial papers issued on 10/4/2017 matured on 8/8/2017 | |||
Debt Issued | |||
Notional amount | $ 16,651 | ||
Annual Rate (in percentage) | 1.30% | ||
USD | Wells Fargo Bank commercial papers issued on 11/4/2017 matured on 10/10/2017 | |||
Debt Issued | |||
Notional amount | $ 13,351 | ||
Annual Rate (in percentage) | 1.45% | ||
USD | Citibank N.A. commercial papers issued on 12/6/2017 matured on 12/9/2017 | |||
Debt Issued | |||
Notional amount | $ 33,061 | ||
Annual Rate (in percentage) | 1.30% | ||
USD | Wells Fargo Bank commercial papers issued on 12/6/2017 matured on 11/12/2017 | |||
Debt Issued | |||
Notional amount | $ 2,645 | ||
Annual Rate (in percentage) | 1.48% | ||
USD | Bofa Merrill Lynch commercial papers issued on 16/06/2017 matured on 15/09/2017 | |||
Debt Issued | |||
Notional amount | $ 7,972 | ||
Annual Rate (in percentage) | 1.30% | ||
USD | Wells Fargo Bank commercial papers issued on 16/06/2017 matured on 15/06/2018 | |||
Debt Issued | |||
Notional amount | $ 6,643 | ||
Annual Rate (in percentage) | 1.75% | ||
USD | Wells Fargo Bank commercial papers issued on 21/06/2017 matured on 20/06/2018 | |||
Debt Issued | |||
Notional amount | $ 6,786 | ||
Annual Rate (in percentage) | 1.81% | ||
USD | Citibank N.A. commercial papers issued on 23/06/2017 matured on 19/12/2017 | |||
Debt Issued | |||
Notional amount | $ 10,418 | ||
Annual Rate (in percentage) | 1.48% | ||
USD | Citibank N.A. commercial papers issued on 27/06/2017 matured on 19/12/2017 | |||
Debt Issued | |||
Notional amount | $ 5,960 | ||
Annual Rate (in percentage) | 1.46% | ||
USD | Citibank N.A. commercial papers issued on 27/06/2017 matured on 23/10/2017 | |||
Debt Issued | |||
Notional amount | $ 26,487 | ||
Annual Rate (in percentage) | 1.35% | ||
USD | JPMorgan Chase commercial papers issued on 11/7/2017 matured on 8/11/2018 | |||
Debt Issued | |||
Notional amount | $ 33,322 | ||
Annual Rate (in percentage) | 1.48% | ||
USD | Citibank N.A. commercial papers issued on 14/07/2017 matured on 12/1/2018 | |||
Debt Issued | |||
Notional amount | $ 32,871 | ||
Annual Rate (in percentage) | 1.52% | ||
USD | Wells Fargo Bank commercial papers issued on 31/07/2017 matured on 31/01/2018-1 | |||
Debt Issued | |||
Notional amount | $ 16,284 | ||
Annual Rate (in percentage) | 1.55% | ||
USD | Wells Fargo Bank commercial papers issued on 31/07/2017 matured on 31/01/2018-2 | |||
Debt Issued | |||
Notional amount | $ 3,257 | ||
Annual Rate (in percentage) | 1.55% | ||
USD | Wells Fargo Bank commercial papers issued on 31/07/2017 matured on 31/10/2017-1 | |||
Debt Issued | |||
Notional amount | $ 6,513 | ||
Annual Rate (in percentage) | 1.42% | ||
USD | Wells Fargo Bank commercial papers issued on 31/07/2017 matured on 31/10/2017-2 | |||
Debt Issued | |||
Notional amount | $ 6,513 | ||
Annual Rate (in percentage) | 1.42% | ||
USD | Wells Fargo Bank commercial papers issued on 14/08/2017 matured on 9/2/2018 | |||
Debt Issued | |||
Notional amount | $ 10,952 | ||
Annual Rate (in percentage) | 1.52% | ||
USD | Wells Fargo Bank commercial papers issued on 21/08/2017 matured on 16/02/2018 | |||
Debt Issued | |||
Notional amount | $ 12,852 | ||
Annual Rate (in percentage) | 1.52% | ||
USD | Wells Fargo Bank commercial papers issued on 25/08/2017 matured on 22/12/2017 | |||
Debt Issued | |||
Notional amount | $ 19,047 | ||
Annual Rate (in percentage) | 1.47% | ||
USD | Wells Fargo Bank commercial papers issued on 13/10/2017 matured on 11/4/2018 | |||
Debt Issued | |||
Notional amount | $ 18,708 | ||
Annual Rate (in percentage) | 1.63% | ||
USD | Wells Fargo Bank commercial papers issued on 13/10/2017 matured on 9/4/2018 | |||
Debt Issued | |||
Notional amount | $ 12,472 | ||
Annual Rate (in percentage) | 1.63% | ||
USD | Wells Fargo Bank commercial papers issued on 13/10/2017 matured on 10/7/2018 | |||
Debt Issued | |||
Notional amount | $ 24,944 | ||
Annual Rate (in percentage) | 1.77% | ||
USD | Wells Fargo Bank commercial papers issued on 13/10/2017 matured on 12/10/2018 | |||
Debt Issued | |||
Notional amount | $ 6,236 | ||
Annual Rate (in percentage) | 1.91% | ||
USD | Bofa Merrill Lynch commercial papers issued on 13/10/2017 matured on 12/4/2018 | |||
Debt Issued | |||
Notional amount | $ 12,472 | ||
Annual Rate (in percentage) | 1.63% | ||
USD | JPMorgan Chase commercial papers issued on 14/11/2017 matured on 13/08/2018 | |||
Debt Issued | |||
Notional amount | $ 8,215 | ||
Annual Rate (in percentage) | 1.83% | ||
USD | Wells Fargo Bank commercial papers issued on 21/11/2017 matured on 21/03/2018 | |||
Debt Issued | |||
Notional amount | $ 15,883 | ||
Annual Rate (in percentage) | 1.65% | ||
USD | Wells Fargo Bank commercial papers issued on 7/12/2017 matured on 5/3/2018 | |||
Debt Issued | |||
Notional amount | $ 42,624 | ||
Annual Rate (in percentage) | 1.75% | ||
USD | Wells Fargo Bank commercial papers issued on 14/12/2017 matured on 13/12/2018 | |||
Debt Issued | |||
Notional amount | $ 1,596 | ||
Annual Rate (in percentage) | 2.25% | ||
USD | Wells Fargo Bank commercial papers issued on 06/02/2018, matured on 08/05/2018 | |||
Debt Issued | |||
Notional amount | $ 2,998 | ||
Annual Rate (in percentage) | 1.85% | 1.85% | |
USD | Wells Fargo Bank commercial papers issued on 06/02/2018, matured on 08/06/2018 | |||
Debt Issued | |||
Notional amount | $ 2,998 | ||
Annual Rate (in percentage) | 1.93% | 1.93% | |
USD | Wells Fargo Bank commercial papers issued on 06/02/2018, matured on 09/07/2018 | |||
Debt Issued | |||
Notional amount | $ 2,998 | ||
Annual Rate (in percentage) | 1.98% | 1.98% | |
USD | Wells Fargo Bank commercial papers issued on 06/02/2018, matured on 06/08/2018 | |||
Debt Issued | |||
Notional amount | $ 2,998 | ||
Annual Rate (in percentage) | 2.05% | 2.05% | |
USD | Wells Fargo Bank commercial papers issued on 06/02/2018, matured on 08/08/2018 | |||
Debt Issued | |||
Notional amount | $ 2,998 | ||
Annual Rate (in percentage) | 2.05% | 2.05% | |
USD | Wells Fargo Bank commercial papers issued on 28/02/2018, matured on 28/06/2018 | |||
Debt Issued | |||
Notional amount | $ 29,716 | ||
Annual Rate (in percentage) | 2.25% | 2.25% | |
USD | Wells Fargo Bank commercial papers issued on 28/02/2018, matured on 29/08/2018 | |||
Debt Issued | |||
Notional amount | $ 1,723 | ||
Annual Rate (in percentage) | 2.40% | 2.40% | |
USD | Citibank N.a. commercial papers issued on 28/02/2018, matured on 25/02/2019 | |||
Debt Issued | |||
Notional amount | $ 6,894 | ||
Annual Rate (in percentage) | 2.60% | 2.60% | |
USD | Wells Fargo Bank commercial papers issued on 02/03/2018, matured on 02/07/2018 | |||
Debt Issued | |||
Notional amount | $ 13,780 | ||
Annual Rate (in percentage) | 2.30% | 2.30% | |
USD | Wells Fargo Bank commercial papers issued on 05/03/2018, matured on 06/07/2018 | |||
Debt Issued | |||
Notional amount | $ 4,489 | ||
Annual Rate (in percentage) | 2.30% | 2.30% | |
USD | Citibank N.a. commercial papers issued on 07/03/2018, matured on 05/06/2018 | |||
Debt Issued | |||
Notional amount | $ 18,080 | ||
Annual Rate (in percentage) | 2.22% | 2.22% | |
USD | Wells Fargo Bank commercial papers issued on 13/03/2018, matured on 11/06/2018 | |||
Debt Issued | |||
Notional amount | $ 1,747 | ||
Annual Rate (in percentage) | 2.25% | 2.25% | |
USD | Wells Fargo Bank commercial papers issued on 14/03/2018, matured on 11/09/2018 | |||
Debt Issued | |||
Notional amount | $ 3,006 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Wells Fargo Bank commercial papers issued on 15/03/2018, matured on 14/12/2018 | |||
Debt Issued | |||
Notional amount | $ 606 | ||
Annual Rate (in percentage) | 2.60% | 2.60% | |
USD | Wells Fargo Bank commercial papers issued on 29/03/2018, matured on 28/09/2018 | |||
Debt Issued | |||
Notional amount | $ 605 | ||
Annual Rate (in percentage) | 2.60% | 2.60% | |
USD | Wells Fargo Bank commercial papers issued on 05/04/2018, matured on 04/09/2018 | |||
Debt Issued | |||
Notional amount | $ 60,343 | ||
Annual Rate (in percentage) | 2.60% | 2.60% | |
USD | Wells Fargo Bank commercial papers issued on 06/04/2018, matured on 01/08/2018 | |||
Debt Issued | |||
Notional amount | $ 30,254 | ||
Annual Rate (in percentage) | 2.50% | 2.50% | |
USD | Wells Fargo Bank commercial papers issued on 10/04/2018, matured on 09/08/2018 | |||
Debt Issued | |||
Notional amount | $ 1,743 | ||
Annual Rate (in percentage) | 2.40% | 2.40% | |
USD | Wells Fargo Bank commercial papers issued on 13/04/2018, matured on 12/04/2019 | |||
Debt Issued | |||
Notional amount | $ 8,918 | ||
Annual Rate (in percentage) | 2.75% | 2.75% | |
USD | Wells Fargo Bank commercial papers issued on 17/04/2018, matured on 16/04/2019 | |||
Debt Issued | |||
Notional amount | $ 8,946 | ||
Annual Rate (in percentage) | 2.75% | 2.75% | |
USD | Citibank N.a. commercial papers issued on 08/05/2018, matured on 08/08/2018 | |||
Debt Issued | |||
Notional amount | $ 19,046 | ||
Annual Rate (in percentage) | 2.36% | 2.36% | |
USD | Citibank N.a. commercial papers issued on 09/05/2018, matured on 07/08/2018 | |||
Debt Issued | |||
Notional amount | $ 31,665 | ||
Annual Rate (in percentage) | 2.38% | 2.38% | |
USD | Citibank N.a. commercial papers issued on 10/05/2018, matured on 08/08/2018 | |||
Debt Issued | |||
Notional amount | $ 1,873 | ||
Annual Rate (in percentage) | 2.37% | 2.37% | |
USD | Citibank N.a. commercial papers issued on 14/05/2018, matured on 15/08/2018 | |||
Debt Issued | |||
Notional amount | $ 12,250 | ||
Annual Rate (in percentage) | 2.36% | 2.36% | |
USD | Wells Fargo Bank commercial papers issued on 11/06/2018, matured on 01/04/2019 | |||
Debt Issued | |||
Notional amount | $ 18,968 | ||
Annual Rate (in percentage) | 2.70% | 2.70% | |
USD | Wells Fargo Bank commercial papers issued on 13/06/2018, matured on 24/07/2018 | |||
Debt Issued | |||
Notional amount | $ 28,973 | ||
Annual Rate (in percentage) | 2.42% | 2.42% | |
USD | Wells Fargo Bank commercial papers issued on 19/06/2018, matured on 20/09/2018 | |||
Debt Issued | |||
Notional amount | $ 15,991 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Citibank N.a. commercial papers issued on 20/06/2018, matured on 20/09/2018 | |||
Debt Issued | |||
Notional amount | $ 12,778 | ||
Annual Rate (in percentage) | 2.41% | 2.41% | |
USD | Citibank N.a. commercial papers issued on 20/06/2018, matured on 03/10/2018 | |||
Debt Issued | |||
Notional amount | $ 31,944 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Wells Fargo Bank commercial papers issued on 20/06/2018, matured on 13/02/2019 | |||
Debt Issued | |||
Notional amount | $ 3,194 | ||
Annual Rate (in percentage) | 2.65% | 2.65% | |
USD | Citibank N.a. commercial papers issued on 22/06/2018, matured on 23/11/2018 | |||
Debt Issued | |||
Notional amount | $ 3,885 | ||
Annual Rate (in percentage) | 2.50% | 2.50% | |
USD | Wells Fargo Bank commercial papers issued on 28/06/2018, matured on 27/07/2018 | |||
Debt Issued | |||
Notional amount | $ 19,495 | ||
Annual Rate (in percentage) | 2.20% | 2.20% | |
USD | Wells Fargo Bank commercial papers issued on 03/07/2018, matured on 11/09/2018 | |||
Debt Issued | |||
Notional amount | $ 4,875 | ||
Annual Rate (in percentage) | 2.30% | 2.30% | |
USD | Wells Fargo Bank commercial papers issued on 06/07/2018, matured on 10/09/2018 | |||
Debt Issued | |||
Notional amount | $ 29,556 | ||
Annual Rate (in percentage) | 2.30% | 2.30% | |
USD | Wells Fargo Bank commercial papers issued on 17/07/2018, matured on 17/10/2018 | |||
Debt Issued | |||
Notional amount | $ 62,079 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Wells Fargo Bank commercial papers issued on 24/07/2018, matured on 22/10/2018 | |||
Debt Issued | |||
Notional amount | $ 32,729 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Wells Fargo Bank commercial papers issued on 27/07/2018, matured on 29/10/2018 | |||
Debt Issued | |||
Notional amount | $ 19,283 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Wells Fargo Bank commercial papers issued on 30/07/2018, matured on 29/11/2018 | |||
Debt Issued | |||
Notional amount | $ 31,919 | ||
Annual Rate (in percentage) | 2.50% | 2.50% | |
USD | Wells Fargo Bank commercial papers issued on 01/08/2018, matured on 06/12/2018 | |||
Debt Issued | |||
Notional amount | $ 16,039 | ||
Annual Rate (in percentage) | 2.52% | 2.52% | |
USD | Citibank N.a. commercial papers issued on 02/08/2018, matured on 06/12/2018 | |||
Debt Issued | |||
Notional amount | $ 25,787 | ||
Annual Rate (in percentage) | 2.50% | 2.50% | |
USD | Wells Fargo Bank commercial papers issued on 07/08/2018, matured on 14/12/2018 | |||
Debt Issued | |||
Notional amount | $ 10,859 | ||
Annual Rate (in percentage) | 2.47% | 2.47% | |
USD | Wells Fargo Bank commercial papers issued on 09/08/2018, matured on 14/12/2018 | |||
Debt Issued | |||
Notional amount | $ 3,238 | ||
Annual Rate (in percentage) | 2.46% | 2.46% | |
USD | Wells Fargo Bank commercial papers issued on 31/08/2018, matured on 28/12/2018 | |||
Debt Issued | |||
Notional amount | $ 17,070 | ||
Annual Rate (in percentage) | 2.53% | 2.53% | |
USD | Wells Fargo Bank commercial papers issued on 04/09/2018, matured on 06/02/2019 | |||
Debt Issued | |||
Notional amount | $ 6,929 | ||
Annual Rate (in percentage) | 2.58% | 2.58% | |
USD | Citibank N.a. commercial papers issued on 04/09/2018, matured on 04/01/2019 | |||
Debt Issued | |||
Notional amount | $ 34,646 | ||
Annual Rate (in percentage) | 2.57% | 2.57% | |
USD | Citibank N.a. commercial papers issued on 07/09/2018, matured on 09/10/2018 - 1 | |||
Debt Issued | |||
Notional amount | $ 4,902 | ||
Annual Rate (in percentage) | 2.24% | 2.24% | |
USD | Citibank N.a. commercial papers issued on 07/09/2018, matured on 09/10/2018 - 2 | |||
Debt Issued | |||
Notional amount | $ 34,525 | ||
Annual Rate (in percentage) | 2.25% | 2.25% | |
USD | Citibank N.a. commercial papers issued on 10/09/2018, matured on 09/10/2018 | |||
Debt Issued | |||
Notional amount | $ 1,742 | ||
Annual Rate (in percentage) | 2.23% | 2.23% | |
USD | Wells Fargo Bank commercial papers issued on 10/09/2018, matured on 11/03/2019 | |||
Debt Issued | |||
Notional amount | $ 3,484 | ||
Annual Rate (in percentage) | 2.65% | 2.65% | |
USD | Wells Fargo Bank commercial papers issued on 11/09/2018, matured on 06/12/2018 | |||
Debt Issued | |||
Notional amount | $ 6,026 | ||
Annual Rate (in percentage) | 2.45% | 2.45% | |
USD | Bofa Merrill Lynch commercial papers issued on 14/09/2018, matured on 01/03/2019 | |||
Debt Issued | |||
Notional amount | $ 18,421 | ||
Annual Rate (in percentage) | 2.62% | 2.62% | |
USD | Wells Fargo Bank commercial papers issued on 20/09/2018, matured on 20/12/2018 | |||
Debt Issued | |||
Notional amount | $ 33,464 | ||
Annual Rate (in percentage) | 2.48% | 2.48% | |
USD | Wells Fargo Bank commercial papers issued on 03/10/2018, matured on 05/04/2019 | |||
Debt Issued | |||
Notional amount | $ 1,322 | ||
Annual Rate (in percentage) | 2.70% | 2.70% | |
USD | Wells Fargo Bank commercial papers issued on 12/10/2018, matured on 25/04/2019 | |||
Debt Issued | |||
Notional amount | $ 13,591 | ||
Annual Rate (in percentage) | 2.78% | 2.78% | |
USD | Wells Fargo Bank commercial papers issued on 16/10/2018, matured on 16/01/2019 | |||
Debt Issued | |||
Notional amount | $ 6,694 | ||
Annual Rate (in percentage) | 2.55% | 2.55% | |
USD | Citibank N.a. commercial papers issued on 17/10/2018, matured on 04/01/2019 | |||
Debt Issued | |||
Notional amount | $ 6,713 | ||
Annual Rate (in percentage) | 2.50% | 2.50% | |
USD | Citibank N.a. commercial papers issued on 23/10/2018, matured on 22/01/2019 | |||
Debt Issued | |||
Notional amount | $ 34,208 | ||
Annual Rate (in percentage) | 2.65% | 2.65% | |
USD | Citibank N.a. commercial papers issued on 11/12/2018, matured on 11/03/2019 | |||
Debt Issued | |||
Notional amount | $ 20,483 | ||
Annual Rate (in percentage) | 2.84% | 2.84% | |
USD | Wells Fargo Bank commercial papers issued on 12/12/2018, matured on 12/04/2019 | |||
Debt Issued | |||
Notional amount | $ 2,236 | ||
Annual Rate (in percentage) | 2.90% | 2.90% | |
USD | Wells Fargo Bank commercial papers issued on 20/12/2018, matured on 19/02/2019 | |||
Debt Issued | |||
Notional amount | $ 34,555 | ||
Annual Rate (in percentage) | 2.67% | 2.67% | |
USD | Wells Fargo Bank commercial papers issued on 27/12/2018, matured on 02/05/2019 | |||
Debt Issued | |||
Notional amount | $ 10,466 | ||
Annual Rate (in percentage) | 2.97% | 2.97% | |
USD | Wells Fargo Bank commercial papers issued on 27/12/2018, matured on 29/04/2019 | |||
Debt Issued | |||
Notional amount | $ 6,977 | ||
Annual Rate (in percentage) | 2.97% | 2.97% | |
CHF | Series BONO USD unsubordinated bonds issued on 20/12/2017 maturing on 20/12/2037 | |||
Debt Issued | |||
Annual Rate (in percentage) | 2.49% | ||
CHF | Series BONO CHF unsubordinated bonds issued on 26/10/2018, maturity on 26/10/2023 | |||
Debt Issued | |||
Notional amount | $ 79,229 | ||
Term (in years) | 5 years | ||
Annual Rate (in percentage) | 0.57% | 0.57% | |
JPY | Series BONO JPY unsubordinated bonds issued on 17/10/2017 maturing on 17/10/2037 | |||
Debt Issued | |||
Notional amount | $ 55,506 | ||
Term (in years) | 20 years | ||
Annual Rate (in percentage) | 1.02% | ||
EUR | Series BONO EUR unsubordinated bonds issued on 26/04/2017 maturing on 26/04/2032 | |||
Debt Issued | |||
Notional amount | $ 36,782 | ||
Term (in years) | 15 years | ||
Annual Rate (in percentage) | 1.71% |
Other Financial Obligations (De
Other Financial Obligations (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Other Financial Obligations | |||
Other Chilean obligations | $ 95,912 | $ 104,665 | |
Public sector obligations | 22,102 | 32,498 | |
Total | $ 170,147 | $ 118,014 | $ 137,163 |
Provisions (Details)
Provisions (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Jan. 01, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) |
Provisions | |||||
Provisions | $ 294,040 | $ 203,946 | $ 217,512 | $ 194,537 | $ 187,568 |
Minimum dividends | |||||
Provisions | |||||
Provisions | 178,462 | 172,804 | 172,804 | 165,675 | |
Provisions for contingent loan risks | |||||
Provisions | |||||
Provisions | 25,016 | 22,975 | |||
Contingencies | |||||
Provisions | |||||
Provisions | $ 468 | $ 21,733 | $ 21,733 | $ 21,893 |
Provisions - Changes in Provisi
Provisions - Changes in Provisions (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Changes in provisions | |||
Beginning Balance | $ 194,537 | $ 187,568 | |
Provisions established | 180,506 | 172,804 | |
Provisions used | (192,151) | (165,675) | |
Provisions released | (1,921) | (160) | |
Ending Balance | $ 294,040 | 203,946 | 194,537 |
Impairment of losses | |||
Foreign office guarantees and standby letters of credit | 341,676 | 285,035 | |
Confirmed foreign letters of credit | 56,764 | 64,970 | |
Issued foreign letters of credit | 388,396 | 94,313 | |
Performance guarantees | 2,232,682 | 2,220,828 | |
Undrawn credit lines | 7,769,325 | 7,240,406 | |
Total | 31,840,465 | 31,004,741 | |
Minimum dividends | |||
Changes in provisions | |||
Beginning Balance | 172,804 | 165,675 | |
Provisions established | 178,462 | 172,804 | |
Provisions used | (172,804) | (165,675) | |
Ending Balance | 178,462 | 172,804 | |
Provisions for contingent loan risks | |||
Changes in provisions | |||
Provisions established | 2,041 | ||
Ending Balance | 25,016 | ||
Impairment of losses | |||
Foreign office guarantees and standby letters of credit | 428 | ||
Confirmed foreign letters of credit | 29 | ||
Issued foreign letters of credit | 93 | ||
Performance guarantees | 4,080 | ||
Undrawn credit lines | 20,386 | ||
Total | 25,016 | ||
Contingencies | |||
Changes in provisions | |||
Beginning Balance | 21,733 | 21,893 | |
Provisions established | 3 | ||
Provisions used | (19,347) | ||
Provisions released | (1,921) | (160) | |
Ending Balance | $ 468 | $ 21,733 |
Provisions - Maximum exposure t
Provisions - Maximum exposure to credit risk - Foreign office guarantees and standby letters of credit (Details) - Foreign office guarantees and standby letters of credit - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 341,676 | $ 285,035 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 341,329 | 283,329 |
Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 347 | $ 1,706 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 332,965 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 332,965 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 138 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 138 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 8,573 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 8,226 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 347 |
Provisions - Analysis of change
Provisions - Analysis of changes in exposures - Foreign office guarantees and standby letters of credit (Details) - Foreign office guarantees and standby letters of credit $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 285,035 |
Total | 341,676 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 332,965 |
12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 138 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 8,573 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 285,035 |
Net change on exposures | 29,677 |
Foreign exchange adjustments | 26,964 |
Total | 341,676 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 274,563 |
Net change on exposures | 33,660 |
Transfer to Stage 1 | 4,994 |
Transfer to Stage 2 | (6,513) |
Foreign exchange adjustments | 26,261 |
Total | 332,965 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 84 |
Net change on exposures | 24 |
Foreign exchange adjustments | 30 |
Total | 138 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 10,388 |
Net change on exposures | (4,139) |
Transfer to Stage 1 | (4,855) |
Transfer to Stage 2 | 6,513 |
Foreign exchange adjustments | 666 |
Total | 8,573 |
Gross Balance | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Net change on exposures | 132 |
Transfer to Stage 1 | (139) |
Foreign exchange adjustments | 7 |
Accumulated Amortization | |
Contingencies and Commitments | |
Exposure as at beginning of period | 256 |
Net change on exposures | 208 |
Impact on year end ECL of exposures transferred between stages during the year | (70) |
Foreign exchange adjustments | 34 |
Total | 428 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 256 |
Net change on exposures | 152 |
Transfer to Stage 1 | 60 |
Transfer to Stage 2 | (14) |
Impact on year end ECL of exposures transferred between stages during the year | (56) |
Foreign exchange adjustments | 30 |
Total | 428 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Net change on exposures | (1) |
Foreign exchange adjustments | 1 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Transfer to Stage 2 | 14 |
Impact on year end ECL of exposures transferred between stages during the year | (14) |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Net change on exposures | 57 |
Transfer to Stage 1 | (60) |
Foreign exchange adjustments | $ 3 |
Provisions - Maximum exposure_2
Provisions - Maximum exposure to credit risk - Confirmed foreign letters of credit (Details) - Confirmed foreign letters of credit - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 56,764 | $ 64,970 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 56,764 | $ 64,970 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 56,764 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 56,764 |
Provisions - Analysis of chan_2
Provisions - Analysis of changes in exposures - Confirmed foreign letters of credit (Details) - Confirmed foreign letters of credit $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 64,970 |
Total | 56,764 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 56,764 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 64,970 |
Net change on exposures | (15,447) |
Foreign exchange adjustments | 7,241 |
Total | 56,764 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 64,970 |
Net change on exposures | (15,455) |
Foreign exchange adjustments | 7,249 |
Total | 56,764 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Net change on exposures | 8 |
Foreign exchange adjustments | (8) |
Accumulated Amortization | |
Contingencies and Commitments | |
Exposure as at beginning of period | 23 |
Net change on exposures | 3 |
Foreign exchange adjustments | 3 |
Total | 29 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 23 |
Net change on exposures | 3 |
Foreign exchange adjustments | 3 |
Total | $ 29 |
Provisions - Maximum exposure_3
Provisions - Maximum exposure to credit risk - Issued foreign letters of credit (Details) - Issued foreign letters of credit - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 388,396 | $ 94,313 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 388,396 | $ 94,313 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 344,874 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 344,874 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,585 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,585 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 41,823 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 41,823 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 114 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 114 |
Provisions - Analysis of chan_3
Provisions - Analysis of changes in exposures - Issued foreign letters of credit (Details) - Issued foreign letters of credit $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 94,313 |
Total | 388,396 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 344,874 |
12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 1,585 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 41,823 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 114 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 94,313 |
Net change on exposures | 283,384 |
Foreign exchange adjustments | 10,699 |
Total | 388,396 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 80,106 |
Net change on exposures | 262,824 |
Transfer to Stage 1 | 6,268 |
Transfer to Stage 2 | (13,420) |
Foreign exchange adjustments | 9,096 |
Total | 344,874 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,737 |
Net change on exposures | 832 |
Transfer to Stage 2 | (1,098) |
Foreign exchange adjustments | 114 |
Total | 1,585 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 11,984 |
Net change on exposures | 21,226 |
Transfer to Stage 1 | (6,268) |
Transfer to Stage 2 | 13,420 |
Foreign exchange adjustments | 1,461 |
Total | 41,823 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 486 |
Net change on exposures | (1,498) |
Transfer to Stage 2 | 1,098 |
Foreign exchange adjustments | 28 |
Total | 114 |
Accumulated Amortization | |
Contingencies and Commitments | |
Exposure as at beginning of period | 49 |
Net change on exposures | 44 |
Impact on year end ECL of exposures transferred between stages during the year | (4) |
Foreign exchange adjustments | 4 |
Total | 93 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 43 |
Net change on exposures | 38 |
Transfer to Stage 2 | (6) |
Impact on year end ECL of exposures transferred between stages during the year | 4 |
Foreign exchange adjustments | 4 |
Total | 83 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 6 |
Net change on exposures | 7 |
Transfer to Stage 2 | (3) |
Total | 10 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Transfer to Stage 2 | 6 |
Impact on year end ECL of exposures transferred between stages during the year | (6) |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Net change on exposures | (1) |
Transfer to Stage 2 | 3 |
Impact on year end ECL of exposures transferred between stages during the year | $ (2) |
Provisions - Maximum exposure_4
Provisions - Maximum exposure to credit risk - Performance guarantees (Details) - Performance guarantees - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 2,232,682 | $ 2,220,828 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 2,221,484 | 2,209,665 |
Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 7,586 | 9,157 |
Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 3,612 | $ 2,006 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,685,980 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,685,980 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 54,523 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 54,523 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 485,075 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 477,489 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 7,586 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 3,544 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 3,470 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 74 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 2,310 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 2,310 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,250 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 22 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 1,228 |
Provisions - Analysis of chan_4
Provisions - Analysis of changes in exposures - Performance guarantees (Details) - Performance guarantees $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 2,220,828 |
Total | 2,232,682 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 1,685,980 |
12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 54,523 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 485,075 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 3,544 |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 2,310 |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Total | 1,250 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 2,220,828 |
Net change on exposures | (22,811) |
Foreign exchange adjustments | 34,665 |
Total | 2,232,682 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,803,358 |
Net change on exposures | (6,282) |
Transfer to Stage 1 | 189,344 |
Transfer to Stage 2 | (332,091) |
Transfer to Stage 3 | (13) |
Foreign exchange adjustments | 31,664 |
Total | 1,685,980 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 46,416 |
Net change on exposures | 8,008 |
Transfer to Stage 1 | 10,346 |
Transfer to Stage 2 | (9,034) |
Transfer to Stage 3 | (1,304) |
Foreign exchange adjustments | 91 |
Total | 54,523 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 365,137 |
Net change on exposures | (23,779) |
Transfer to Stage 1 | (189,279) |
Transfer to Stage 2 | 332,365 |
Transfer to Stage 3 | (2,256) |
Foreign exchange adjustments | 2,887 |
Total | 485,075 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 3,741 |
Net change on exposures | 1,963 |
Transfer to Stage 1 | (10,258) |
Transfer to Stage 2 | 9,067 |
Transfer to Stage 3 | (975) |
Foreign exchange adjustments | 6 |
Total | 3,544 |
Gross Balance | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,162 |
Net change on exposures | (786) |
Transfer to Stage 1 | (65) |
Transfer to Stage 2 | (274) |
Transfer to Stage 3 | 2,269 |
Foreign exchange adjustments | 4 |
Total | 2,310 |
Gross Balance | Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,014 |
Net change on exposures | (1,935) |
Transfer to Stage 1 | (88) |
Transfer to Stage 2 | (33) |
Transfer to Stage 3 | 2,279 |
Foreign exchange adjustments | 13 |
Total | 1,250 |
Accumulated Amortization | |
Contingencies and Commitments | |
Exposure as at beginning of period | 3,676 |
Net change on exposures | 301 |
Impact on year end ECL of exposures transferred between stages during the year | 48 |
Foreign exchange adjustments | 55 |
Total | 4,080 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,841 |
Net change on exposures | 664 |
Transfer to Stage 2 | (439) |
Impact on year end ECL of exposures transferred between stages during the year | 209 |
Foreign exchange adjustments | 33 |
Total | 2,308 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 384 |
Net change on exposures | 73 |
Transfer to Stage 1 | 18 |
Transfer to Stage 2 | (87) |
Transfer to Stage 3 | (80) |
Impact on year end ECL of exposures transferred between stages during the year | 200 |
Foreign exchange adjustments | 1 |
Total | 509 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 947 |
Net change on exposures | (113) |
Transfer to Stage 2 | 442 |
Transfer to Stage 3 | (86) |
Impact on year end ECL of exposures transferred between stages during the year | (444) |
Foreign exchange adjustments | 19 |
Total | 765 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Net change on exposures | (2) |
Transfer to Stage 2 | 90 |
Impact on year end ECL of exposures transferred between stages during the year | (88) |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 470 |
Net change on exposures | (310) |
Transfer to Stage 2 | (3) |
Transfer to Stage 3 | 86 |
Impact on year end ECL of exposures transferred between stages during the year | 250 |
Foreign exchange adjustments | 2 |
Total | 495 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 34 |
Net change on exposures | (11) |
Transfer to Stage 1 | (18) |
Transfer to Stage 2 | (3) |
Transfer to Stage 3 | 80 |
Impact on year end ECL of exposures transferred between stages during the year | (79) |
Total | $ 3 |
Provisions - Maximum exposure_5
Provisions - Maximum exposure to credit risk - Undrawn credit lines (Details) - Undrawn credit lines - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 7,769,325 | $ 7,240,406 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 7,756,251 | 7,227,822 |
Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,502 | 1,791 |
Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 11,572 | $ 10,793 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,279,611 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,279,611 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 5,512,504 | |
12-month expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 5,512,504 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 178,586 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 177,084 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | Substandard | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 1,502 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 786,663 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 786,603 | |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 60 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 328 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 328 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 11,633 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 449 | |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | Non-complying | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 11,184 |
Provisions - Analysis of chan_5
Provisions - Analysis of changes in exposures - Undrawn credit lines (Details) - Undrawn credit lines $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 7,240,406 |
Total | 7,769,325 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 1,279,611 |
12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 5,512,504 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 178,586 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Total | 786,663 |
Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 328 |
Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Total | 11,633 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 7,240,406 |
Net change on exposures | 601,223 |
Foreign exchange adjustments | (72,304) |
Total | 7,769,325 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 1,199,593 |
Net change on exposures | 111,426 |
Transfer to Stage 1 | 130,936 |
Transfer to Stage 2 | (166,795) |
Transfer to Stage 3 | (120) |
Foreign exchange adjustments | 4,571 |
Total | 1,279,611 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 5,086,210 |
Net change on exposures | 621,021 |
Transfer to Stage 1 | 491,857 |
Transfer to Stage 2 | (561,588) |
Transfer to Stage 3 | (1,928) |
Foreign exchange adjustments | (123,068) |
Total | 5,512,504 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 147,053 |
Net change on exposures | (5,449) |
Transfer to Stage 1 | (130,926) |
Transfer to Stage 2 | 166,892 |
Transfer to Stage 3 | (217) |
Foreign exchange adjustments | 1,233 |
Total | 178,586 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 794,449 |
Net change on exposures | (114,834) |
Transfer to Stage 1 | (488,237) |
Transfer to Stage 2 | 563,941 |
Transfer to Stage 3 | (13,476) |
Foreign exchange adjustments | 44,820 |
Total | 786,663 |
Gross Balance | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 411 |
Net change on exposures | (326) |
Transfer to Stage 1 | (11) |
Transfer to Stage 2 | (97) |
Transfer to Stage 3 | 337 |
Foreign exchange adjustments | 14 |
Total | 328 |
Gross Balance | Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 12,690 |
Net change on exposures | (10,615) |
Transfer to Stage 1 | (3,619) |
Transfer to Stage 2 | (2,353) |
Transfer to Stage 3 | 15,404 |
Foreign exchange adjustments | 126 |
Total | 11,633 |
Accumulated Amortization | |
Contingencies and Commitments | |
Exposure as at beginning of period | 18,971 |
Net change on exposures | (577) |
Impact on year end ECL of exposures transferred between stages during the year | 1,554 |
Foreign exchange adjustments | 438 |
Total | 20,386 |
Accumulated Amortization | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 937 |
Net change on exposures | 684 |
Transfer to Stage 1 | 99 |
Transfer to Stage 2 | (87) |
Impact on year end ECL of exposures transferred between stages during the year | (3) |
Foreign exchange adjustments | 4 |
Total | 1,634 |
Accumulated Amortization | 12-month expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 8,071 |
Net change on exposures | 2,796 |
Transfer to Stage 1 | 1,463 |
Transfer to Stage 2 | (3,246) |
Transfer to Stage 3 | (92) |
Impact on year end ECL of exposures transferred between stages during the year | 31 |
Foreign exchange adjustments | 100 |
Total | 9,123 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 147 |
Net change on exposures | 21 |
Transfer to Stage 1 | (96) |
Transfer to Stage 2 | 124 |
Transfer to Stage 3 | (5) |
Impact on year end ECL of exposures transferred between stages during the year | (56) |
Foreign exchange adjustments | 2 |
Total | 137 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments not credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 4,747 |
Net change on exposures | (2,669) |
Transfer to Stage 1 | (817) |
Transfer to Stage 2 | 3,898 |
Transfer to Stage 3 | (818) |
Impact on year end ECL of exposures transferred between stages during the year | (441) |
Foreign exchange adjustments | 294 |
Total | 4,194 |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments credit-impaired | Individual | |
Contingencies and Commitments | |
Net change on exposures | 41 |
Transfer to Stage 1 | (4) |
Transfer to Stage 2 | (37) |
Transfer to Stage 3 | 5 |
Impact on year end ECL of exposures transferred between stages during the year | (5) |
Accumulated Amortization | Lifetime expected credit losses | Financial instruments credit-impaired | Group | |
Contingencies and Commitments | |
Exposure as at beginning of period | 5,069 |
Net change on exposures | (1,450) |
Transfer to Stage 1 | (645) |
Transfer to Stage 2 | (652) |
Transfer to Stage 3 | 910 |
Impact on year end ECL of exposures transferred between stages during the year | 2,028 |
Foreign exchange adjustments | 38 |
Total | $ 5,298 |
Provisions - Maximum exposure_6
Provisions - Maximum exposure to credit risk - Other commitments (Details) - Other commitments - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 46,561 | $ 60,609 |
Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 46,561 | $ 60,609 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | 46,561 | |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | Normal | ||
Contingencies and Commitments | ||
Maximum exposure to credit risk | $ 46,561 |
Provisions - Analysis of chan_6
Provisions - Analysis of changes in exposures - Other commitments (Details) - Other commitments $ in Millions | 12 Months Ended |
Dec. 31, 2018CLP ($) | |
Contingencies and Commitments | |
Exposure as at beginning of period | $ 60,609 |
Total | 46,561 |
12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Total | 46,561 |
Gross Balance | |
Contingencies and Commitments | |
Exposure as at beginning of period | 60,609 |
Net change on exposures | (14,048) |
Total | 46,561 |
Gross Balance | 12-month expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 49,519 |
Net change on exposures | (2,958) |
Total | 46,561 |
Gross Balance | Lifetime expected credit losses | Financial instruments not credit-impaired | Individual | |
Contingencies and Commitments | |
Exposure as at beginning of period | 11,090 |
Net change on exposures | $ (11,090) |
Employee Benefits (Details)
Employee Benefits (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2016CLP ($) | |
Employee benefit disclosures | |||||
Short-term personnel benefits | $ 43,372 | $ 47,797 | $ 37,868 | ||
Vacation accrual | 25,159 | 26,855 | 25,539 | ||
Employee defined benefit plan | 7,676 | 7,754 | |||
Other Benefits | 10,421 | 10,173 | |||
Total | 86,628 | $ 133,476 | 92,579 | ||
Staff Severance Indemnities Plan | |||||
Employee benefit disclosures | |||||
Employee defined benefit plan | 7,676 | $ 7,754 | $ 8,851 | ||
Current service cost | $ 250 | (86) | |||
Interest cost on benefit obligation | 300 | 343 | |||
Actuarial gains and losses | 127 | (164) | |||
Net benefit expense | $ 677 | $ 93 | |||
Discount rate | 4.53% | 4.25% | 4.25% | ||
Annual salary increase | 4.14% | 4.42% | 4.42% | ||
Payment probability | 99.99% | 99.99% | 99.99% |
Employee Benefits - Changes in
Employee Benefits - Changes in the present value defined benefit obligation, incentive plans and vacation (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in present value of defined benefit obligation | ||
Opening defined benefit obligation, January 1, | $ 7,676 | |
Closing defined benefit obligation | 7,754 | $ 7,676 |
Changes in provisions for incentive plans | ||
Balances as of January 1, | 43,372 | 37,868 |
Provisions established | 40,058 | 37,815 |
Provisions used | (35,633) | (32,311) |
Balances as of December 31, | 47,797 | 43,372 |
Changes in provisions for vacation | ||
Balances as of January 1, | 25,159 | 25,539 |
Provisions established | 7,529 | 5,626 |
Provisions used | (5,833) | (6,006) |
Balances as of December 31, | 26,855 | 25,159 |
Staff Severance Indemnities Plan | ||
Changes in present value of defined benefit obligation | ||
Opening defined benefit obligation, January 1, | 7,676 | 8,851 |
Increase (Decrease) in provision | 550 | 257 |
Benefits paid | (599) | (1,268) |
Actuarial gains and losses | 127 | (164) |
Closing defined benefit obligation | $ 7,754 | $ 7,676 |
Other Liabilities (Details)
Other Liabilities (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) |
Other Liabilities | |||
Accounts and notes payable | $ 176,826 | $ 190,151 | |
Securities unliquidated | 106,071 | 2,625 | |
Documents intermediated | 53,492 | 49,672 | |
Cobranding | 36,081 | 32,905 | |
Financial guarantees | 11,374 | ||
Deferred income | 5,743 | 5,576 | |
Insurance payments | 992 | 478 | |
Pending transactions | 616 | 675 | |
VAT payable | 918 | ||
Other | 18,984 | 14,189 | |
Total | $ 574,978 | $ 398,805 | $ 308,563 |
Contingencies and Commitments_2
Contingencies and Commitments (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Off-balance sheet accounts | ||
Foreign office guarantees and standby letters of credit | $ 341,676 | $ 285,035 |
Confirmed foreign letters of credit | 56,764 | 64,970 |
Issued foreign letters of credit | 388,396 | 94,313 |
Performance guarantees | 2,232,682 | 2,220,828 |
Undrawn credit lines | 7,769,325 | 7,240,406 |
Other commitments | 46,561 | 60,609 |
Transactions on behalf of third parties | ||
Collections | 160,367 | 168,353 |
Third-party resources managed by the Bank: | ||
Financial assets managed on behalf of third parties | 27,334 | 7,121 |
Financial assets acquired on its own behalf | 103,319 | 133,794 |
Fiduciary activities | ||
Securities held in safe custody in the Bank | 6,930,293 | 5,738,873 |
Securities held in safe custody in other entities | 13,783,748 | 14,990,439 |
Total | $ 31,840,465 | $ 31,004,741 |
Contingencies and Commitments -
Contingencies and Commitments - Financial Guarantees (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Performance guarantees | $ 2,232,682 | $ 2,220,828 |
Foreign office guarantees and standby letters of credit | 341,676 | 285,035 |
Total | 31,840,465 | 31,004,741 |
Financial guarantees | ||
Contingencies and Commitments | ||
Performance guarantees | 2,232,682 | 2,220,828 |
Foreign office guarantees and standby letters of credit | 341,676 | 285,035 |
Total | 2,574,358 | 2,505,863 |
Due within 1 year | Financial guarantees | ||
Contingencies and Commitments | ||
Performance guarantees | 1,537,447 | 1,608,314 |
Foreign office guarantees and standby letters of credit | 318,917 | 218,532 |
Total | 1,856,364 | 1,826,846 |
Due after 1 years but within 3 years | Financial guarantees | ||
Contingencies and Commitments | ||
Performance guarantees | 574,650 | 523,597 |
Foreign office guarantees and standby letters of credit | 18,704 | 66,006 |
Total | 593,354 | 589,603 |
Due after 3 years but within 5 years | Financial guarantees | ||
Contingencies and Commitments | ||
Performance guarantees | 96,841 | 80,623 |
Foreign office guarantees and standby letters of credit | 3,708 | 280 |
Total | 100,549 | 80,903 |
Due after 5 years | Financial guarantees | ||
Contingencies and Commitments | ||
Performance guarantees | 23,744 | 8,294 |
Foreign office guarantees and standby letters of credit | 347 | 217 |
Total | $ 24,091 | $ 8,511 |
Contingencies and Commitments_3
Contingencies and Commitments - Lawsuits and legal proceedings (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Provision for legal contingencies | $ 204 | $ 21,470 |
Due within 1 year | ||
Contingencies and Commitments | ||
Provision for legal contingencies | 24 | |
2 years | ||
Contingencies and Commitments | ||
Provision for legal contingencies | $ 180 |
Contingencies and Commitments_4
Contingencies and Commitments - Guarantees Granted - Banchile Administradora General de Fondos S.A (Details) - Banchile Administradora General de Fondos S.A - CLF ( ) | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies and Commitments | ||
Policy for guaranteed amount for Real State Funds | 586,200 | |
Mutual fund guarantees | 0 | 0 |
Bank guarantee maturing on January 10, 2018 | ||
Contingencies and Commitments | ||
Bank guarantees issued | 2,588,500 | |
Bank guarantee maturing on January 10, 2019 | ||
Contingencies and Commitments | ||
Bank guarantees issued | 2,977,300 | |
Bank guarantee for benefit of investors in portfolio management | 499,800 |
Contingencies and Commitments_5
Contingencies and Commitments - Guarantees Granted - Banchile Corredores de Bolsa S.A (Details) $ in Millions | Oct. 30, 2014CLF ( ) | Dec. 31, 2018CLF ( )shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CLP ($)shares | Dec. 31, 2017CLP ($) |
Financial guarantees | |||||
Contingencies and Commitments | |||||
Shares to secure short-sale transactions in Securities Exchange of the Santiago Stock Exchange | $ 59,074 | $ 20,249 | |||
Shares to secure short-sale transactions in Securities Exchange of the Electronic Stock Exchange of Chile | 17,223 | 29,926 | |||
Fixed income securities to ensure system CCLV, Santiago Securities Exchange, Stock Exchange | 5,976 | 3,995 | |||
Shares delivered to ensure equity loan, Chilean Electronic Stock Exchange, Stock exchange | 3,864 | ||||
Total | $ 82,273 | $ 58,034 | |||
Banchile Corredores de Bolsa S.A | |||||
Contingencies and Commitments | |||||
Insurance policy guarantee | | 20,000 | ||||
Number of shares in Santiago Stock Exchange pledged | shares | 1,000,000 | 1,000,000 | 1,000,000 | ||
Number of shares in Electronic Chilean Stock Exchange pledged | shares | 100,000 | 100,000 | 100,000 | ||
Insurance policy coverage | $ 10,000,000 | ||||
Guarantee for complying with contracts of SOMA | | 10,500 | ||||
Cash guarantee to Pershing | $ 122,494.32 | ||||
Fine imposed | | 50,000 | ||||
Banchile Corredores de Bolsa S.A | Bank guarantee no. 359886-6 maturing on January 10, 2019 | |||||
Contingencies and Commitments | |||||
Bank guarantees issued | | 242,000 |
Contingencies and Commitments_6
Contingencies and Commitments - Guarantees Granted - Banchile Corredores de Seguros Ltda (Details) - Banchile Corredores de Seguros Ltda. | Dec. 31, 2018CLF ( )item |
Bank guarantees given in relation to subsidiary's business activities: | |
Number of insurance policies | item | 2 |
Responsibility for errors and omissions policy | 60,000 |
Civil responsibility policy | 500 |
Equity (Details)
Equity (Details) - CLP ($) | Jul. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Authorized, subscribed and paid shares: | |||
Registered shares | 101,017,081,114 | 99,444,132,192 | |
Shares subscribed and fully paid | 101,017,081,114 | 99,444,132,192 | |
Par value | $ 0 | $ 0 | $ 0 |
Capitalization of net income (in percentage) | 40.00% | ||
Increase in bank's capital | $ 147,432,502,459 | ||
Share movements | |||
Total shares at the beginning | 99,444,132,192 | 97,624,347,430 | |
Capitalization of retained earnings | 1,572,948,922 | 1,572,948,922 | 1,819,784,762 |
Total shares at the end | 101,017,081,114 | 99,444,132,192 |
Equity - Shareholders' composit
Equity - Shareholders' composition (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Shareholders' composition: | ||
Number of shares | 101,017,081,114 | 99,444,132,192 |
% of Equity Holding (in percentage) | 100.00% | 100.00% |
Sociedad Administradora de la Obligacion Subordinada SAOS S.A. | ||
Shareholders' composition: | ||
Number of shares | 28,593,701,789 | 28,593,701,789 |
% of Equity Holding (in percentage) | 28.31% | 28.75% |
LQ Inversiones Financieras S.A. | ||
Shareholders' composition: | ||
Number of shares | 27,460,203,382 | 26,733,861,635 |
% of Equity Holding (in percentage) | 27.18% | 26.88% |
Sociedad Matriz del Banco de Chile S.A. | ||
Shareholders' composition: | ||
Number of shares | 12,138,573,251 | 12,138,567,444 |
% of Equity Holding (in percentage) | 12.02% | 12.21% |
Other minority shareholders | ||
Shareholders' composition: | ||
Number of shares | 32,824,602,692 | 31,978,001,324 |
% of Equity Holding (in percentage) | 32.49% | 32.16% |
Equity - Dividend (Details)
Equity - Dividend (Details) $ / shares in Units, $ in Thousands, $ in Millions | Mar. 22, 2018CLP ($)$ / shares | Mar. 23, 2017CLP ($)$ / shares | Dec. 31, 2018CLP ($)$ / shares | Dec. 31, 2017CLP ($)$ / sharesshares | Dec. 31, 2016CLP ($)$ / shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CLP ($)shares |
Approval and payment of dividends: | |||||||
Dividends per ordinary share | $ / shares | $ 3.14655951692 | $ 2.92173783704 | $ 3.76 | $ 3.50 | $ 3.81 | ||
Dividends on ordinary shares | $ | $ 374,079 | $ 342,034 | $ 374,079 | $ 342,034 | $ 366,654 | ||
Number of shares | shares | 99,444,132,192 | 101,017,081,114 | 101,017,081,114 | ||||
Minimum mandatory dividend (as a percent) | 30.00% | ||||||
Equity provisions for minimum dividend | $ 172,804 | $ 257,298 | $ 178,462 | ||||
Central Bank | |||||||
Approval and payment of dividends: | |||||||
Dividends on ordinary shares | $ | $ 152,930 | ||||||
Number of shares | shares | 29,161,400,000 | 29,161,400,000 | |||||
Share price | $ / shares | $ 5.2442658 | ||||||
Common shareholders | |||||||
Approval and payment of dividends: | |||||||
Dividends on ordinary shares | $ | $ 221,149 | ||||||
Number of shares | shares | 70,282,700,000 | 70,282,700,000 | |||||
Share price | $ / shares | $ 3.1465595 |
Equity - Other Comprehensive In
Equity - Other Comprehensive Income (Details) - CLP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other comprehensive income | |||
Cumulative translation adjustment | $ (59) | ||
Fair market value adjustment for available-for-sale instruments | $ 10,121 | $ (3,476) | |
Cash Flow hedge | $ (22,589) | $ 11,158 | $ (38,366) |
Equity - Earnings per share (De
Equity - Earnings per share (Details) $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2018CLP ($)$ / sharesshares | Dec. 31, 2017CLP ($)$ / sharesshares | Dec. 31, 2016CLP ($)$ / sharesshares | |
Basic and diluted earnings per share | ||||
Net profits attributable to ordinary equity holders of the Bank | $ 870,290 | $ 603,633 | $ 572,080 | $ 575,051 |
Weighted average number of ordinary shares | 101,017,081,114 | 101,017,081,114 | 101,017,081,114 | 101,017,081,114 |
Earnings per share | $ / shares | $ 5.98 | $ 5.66 | $ 5.69 | |
Capitalised shares, included in EPS calculation | 1,572,948,922 | 1,572,948,922 | 1,819,784,762 | 1,495,200,997 |
Interest Revenue and Expenses_2
Interest Revenue and Expenses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Interest revenue | ||||
Commercial loans | $ 851,328 | $ 786,794 | $ 856,172 | |
Consumer loans | 613,293 | 614,393 | 613,962 | |
Residential mortgage loans | 502,832 | 401,862 | 447,582 | |
Financial investments | 52,909 | 35,403 | 30,725 | |
Repurchase agreements | 2,767 | 7,337 | 9,053 | |
Loans and advances to banks | 24,138 | 15,024 | 32,280 | |
Gain (loss) from accounting hedges | (58,560) | 20,722 | (76,378) | |
Other interest revenue | 11,910 | 5,165 | 3,596 | |
Total | $ 2,884,396 | 2,000,617 | 1,886,700 | 1,916,992 |
Interest received basis for impaired portfolio | 5,113 | 6,426 | ||
Interest expenses | ||||
Savings accounts and time deposits | 301,251 | 297,277 | 376,541 | |
Debt issued | 352,351 | 268,203 | 309,589 | |
Other financial obligations | 1,482 | 1,640 | 1,916 | |
Repurchase agreements | 8,901 | 5,193 | 6,223 | |
Borrowings from financial institutions | 29,275 | 19,255 | 13,504 | |
(Gain) loss from accounting hedges | (23,694) | 54,834 | (24,190) | |
Demand deposits | 9,380 | 5,350 | 6,241 | |
Other interest expenses | 694 | 253 | 435 | |
Total | $ 979,873 | 679,640 | 652,005 | 690,259 |
Loss from accounting hedge | ||||
Total | (34,866) | (34,112) | (52,188) | |
Cash Flow hedge | ||||
Loss from accounting hedge | ||||
Cash Flow hedge | (33,031) | (29,477) | (45,559) | |
Fair value hedge | ||||
Loss from accounting hedge | ||||
Fair value hedge | $ (1,835) | $ (4,635) | $ (6,629) |
Income and Expenses from Fees_3
Income and Expenses from Fees and Commissions (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Income from fees and commissions | ||||
Card services | $ 167,201 | $ 155,572 | $ 144,007 | |
Investments in mutual funds and other | 91,173 | 86,103 | 79,853 | |
Collections and payments | 52,717 | 50,343 | 49,362 | |
Portfolio management | 46,730 | 43,915 | 39,838 | |
Insurance brokerage | 32,886 | 30,163 | 28,036 | |
Guarantees and letter of credit | 25,021 | 24,485 | 23,183 | |
Trading and securities management | 24,632 | 18,741 | 13,666 | |
Use of distribution channel | 20,974 | 18,204 | 18,996 | |
Financial advisory services | 5,046 | 5,536 | 4,152 | |
Lines of credit and overdrafts | 4,837 | 5,000 | 5,795 | |
Other fees earned | 33,897 | 33,640 | 34,155 | |
Total income from fees and commissions | $ 728,250 | 505,114 | 471,702 | 441,043 |
Expenses from fees and commissions | ||||
Credit card transactions | (113,403) | (96,872) | (98,115) | |
Fees for interbank transactions | (16,554) | (13,189) | (10,361) | |
Fees for securities transactions | (7,544) | (6,802) | (3,969) | |
Fees for collections and payments | (6,546) | (6,206) | (6,427) | |
Sales force fees | (258) | (213) | (408) | |
Other fees | (854) | (746) | (492) | |
Total expenses from fees and commissions | $ (209,284) | $ (145,159) | $ (124,028) | $ (119,772) |
Net Financial Operating Incom_2
Net Financial Operating Income (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Net Financial Operating Income | ||||
Income on trading securities | $ 42,605 | $ 46,207 | $ 42,415 | |
Gain (loss) from mark to market | 8,038 | 4,435 | 9,554 | |
Financial assets held-for-trading | 50,643 | 50,642 | 51,969 | |
Sale of financial assets at fair value through other comprehensive income | 1,118 | 6,514 | 65,320 | |
Sale of loan portfolio | 267 | 2,063 | 4,930 | |
Net (loss) gain of other transactions | 384 | 233 | 752 | |
Derivative instruments | 64,730 | (89,113) | 5,604 | |
Total | $ 168,890 | $ 117,142 | $ (29,661) | $ 128,575 |
Foreign Exchange Transactions_3
Foreign Exchange Transactions, net (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Foreign Exchange Transactions, net | ||||
Gain (loss) from accounting hedges | $ (125,598) | $ 176,231 | $ 108,849 | |
Translation difference, net | 9,609 | (7,221) | (6,074) | |
Indexed foreign currency | 118,690 | (64,135) | (90,370) | |
Total | $ 3,894 | $ 2,701 | $ 104,875 | $ 12,405 |
Provisions for Loan Losses (Det
Provisions for Loan Losses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Provisions established: | ||||
Individual provisions | $ (2,608) | $ (5) | $ (5,944) | |
Group provisions | (310,492) | (303,139) | (314,232) | |
Provisions established net | (313,100) | (303,144) | (320,176) | |
Provisions released: | ||||
Individual provisions | 871 | 32,412 | 10,593 | |
Group provisions | 327 | 3,478 | ||
Provisions released net | 1,198 | 32,412 | 14,071 | |
Recovery of written-off assets | 60,579 | 49,477 | 46,842 | |
Provisions net allowances for credit risk | $ (362,346) | (251,323) | (221,255) | (259,263) |
Loans and advances to banks, net | ||||
Provisions established: | ||||
Individual provisions | (240) | (5) | ||
Provisions established net | (240) | (5) | ||
Provisions released: | ||||
Individual provisions | 94 | |||
Provisions released net | 94 | |||
Provisions net allowances for credit risk | (240) | (5) | 94 | |
Loans to customer and loans and advances to banks Consolidated Statement of Cash Flow | ||||
Allowances established of loans to customer | (310,732) | (300,013) | (314,232) | |
Allowances released of loans to customer | 871 | 28,571 | 8,018 | |
Total allowances of loans to customer | (309,861) | (271,442) | (306,214) | |
Total Loans to customers | ||||
Provisions established: | ||||
Group provisions | (310,492) | (300,008) | (314,232) | |
Provisions established net | (310,492) | (300,008) | (314,232) | |
Provisions released: | ||||
Individual provisions | 871 | 28,571 | 7,924 | |
Provisions released net | 871 | 28,571 | 7,924 | |
Recovery of written-off assets | 60,579 | 49,477 | 46,842 | |
Provisions net allowances for credit risk | (249,042) | (221,960) | (259,466) | |
Commercial loans | ||||
Provisions established: | ||||
Group provisions | (61,702) | (47,837) | (45,462) | |
Provisions established net | (61,702) | (47,837) | (45,462) | |
Provisions released: | ||||
Individual provisions | 871 | 28,571 | 7,924 | |
Provisions released net | 871 | 28,571 | 7,924 | |
Recovery of written-off assets | 13,579 | 13,750 | 13,017 | |
Provisions net allowances for credit risk | (47,252) | (5,516) | (24,521) | |
Mortgage loans | ||||
Provisions established: | ||||
Group provisions | (7,546) | (4,361) | (6,932) | |
Provisions established net | (7,546) | (4,361) | (6,932) | |
Provisions released: | ||||
Recovery of written-off assets | 4,572 | 3,246 | 2,350 | |
Provisions net allowances for credit risk | (2,974) | (1,115) | (4,582) | |
Consumer loans | ||||
Provisions established: | ||||
Group provisions | (241,244) | (247,810) | (261,838) | |
Provisions established net | (241,244) | (247,810) | (261,838) | |
Provisions released: | ||||
Recovery of written-off assets | 42,428 | 32,481 | 31,475 | |
Provisions net allowances for credit risk | (198,816) | (215,329) | (230,363) | |
Provisions for contingent loan risks | ||||
Provisions established: | ||||
Individual provisions | (2,368) | (5,944) | ||
Group provisions | (3,131) | |||
Provisions established net | (2,368) | (3,131) | (5,944) | |
Provisions released: | ||||
Individual provisions | 3,841 | 2,575 | ||
Group provisions | 327 | 3,478 | ||
Provisions released net | 327 | 3,841 | 6,053 | |
Provisions net allowances for credit risk | $ (2,041) | $ 710 | $ 109 |
Personnel Expenses (Details)
Personnel Expenses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Personnel Expenses | ||||
Remuneration | $ 244,919 | $ 235,765 | $ 228,801 | |
Bonuses and incentives | 62,675 | 42,465 | 48,927 | |
Variable Compensation | 36,901 | 36,471 | 42,714 | |
Lunch and health benefits | 26,698 | 26,836 | 28,474 | |
Gratifications | 26,275 | 25,402 | 25,486 | |
Staff severance indemnities | 19,941 | 21,241 | 24,141 | |
Training expenses | 3,909 | 3,555 | 2,020 | |
Other personnel expenses | 19,312 | 17,596 | 17,355 | |
Total | $ 635,280 | $ 440,630 | $ 409,331 | $ 417,918 |
Administrative Expenses (Detail
Administrative Expenses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Administrative Expenses | ||||
General administrative expenses | $ 231,458 | $ 211,611 | $ 209,304 | |
Outsources services | 50,898 | 51,949 | 46,923 | |
Marketing expenses | 31,375 | 30,698 | 32,781 | |
Taxes, payroll taxes and contributions | 14,937 | 14,242 | 14,161 | |
Board expenses | 2,809 | 2,955 | 3,175 | |
Total | $ 477,908 | $ 331,477 | $ 311,455 | $ 306,344 |
Depreciation, Amortization an_3
Depreciation, Amortization and Impairment (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Depreciation and amortization | ||||
Depreciation of property and equipment (Note No.16a and Note No. 17) | $ 27,185 | $ 26,176 | $ 24,694 | |
Amortization of intangibles assets (Note No.15a) | 10,496 | 11,360 | 10,881 | |
Total | $ 54,326 | 37,681 | 37,536 | 35,575 |
Impairment loss | ||||
(Gain) loss on debt instruments at fair value through OCI | (1,552) | |||
Impairment loss on property and equipment (Note No.16a) | 334 | 166 | 274 | |
Total | $ (1,218) | $ 166 | $ 274 |
Other Operating Income (Details
Other Operating Income (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | |
Other Operating Income | ||||
Rental income | $ 9,013 | $ 8,863 | $ 8,671 | |
Release of provisions for contingencies | 7,526 | 160 | 120 | |
Reimbursements for insurance policies | 6,346 | 230 | 504 | |
Expense recovery | 4,218 | 4,372 | 3,275 | |
Income for assets received in lieu of payment | $ 5,262 | 3,650 | 1,941 | 2,978 |
Gain on sale of property and equipment | 3,634 | 624 | 185 | |
Recovery from correspondent banks | 2,591 | 2,710 | 2,909 | |
Credit card income | 2,504 | 7,690 | 5,756 | |
Other | 5,813 | 3,369 | 4,177 | |
Total | $ 65,304 | $ 45,295 | $ 29,959 | $ 28,575 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | May 24, 2018CLP ($) | |
Other Operating Expenses | |||||
Total | $ 42,656 | $ 29,586 | $ 25,868 | $ 26,936 | |
Write-offs for operating risks | 11,378 | 6,360 | 5,475 | ||
Operations expenses leasing | 4,501 | 10,152 | 1,893 | ||
Card administration | 2,640 | 2,890 | 3,921 | ||
Provisions for contingencies | 3 | 6,880 | |||
Other | $ (11,064) | $ (6,466) | $ (8,767) | ||
Net write-off recognized for external fraud committed against the Bank | $ 6,002 |
Related Party Transactions (Det
Related Party Transactions (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Amount covered by guarantee: | ||
Maximum % of assets held as trading securities or investments by production companies | 50.00% | |
Related parties | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | $ 421,730 | $ 463,223 |
Allowance for loan losses | (1,316) | (1,623) |
Net loans | 420,414 | 461,600 |
Contingent loans: | ||
Guarantees and sureties | 20,065 | 25,673 |
Letters of credits | 8,086 | 1,464 |
Bank guarantees | 75,964 | 57,528 |
Undrawn credit lines | 91,875 | 82,237 |
Total contingent loans | 195,990 | 166,902 |
Provision for contingencies loans | (173) | (346) |
Contingent loans, net | 195,817 | 166,556 |
Amount covered by guarantee: | ||
Mortgage | 149,608 | 134,944 |
Pledge | 1,417 | |
Others | 64,048 | 55,383 |
Net collateral | 213,656 | 191,744 |
Related parties | Commercial loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 366,900 | 422,263 |
Related parties | Residential mortgage loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 44,756 | 33,695 |
Related parties | Consumer loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 10,074 | 7,265 |
Production and Services Companies | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 221,351 | 243,989 |
Allowance for loan losses | (651) | (988) |
Net loans | 220,700 | 243,001 |
Contingent loans: | ||
Guarantees and sureties | 5,102 | 4,527 |
Letters of credits | 5,310 | 294 |
Bank guarantees | 45,842 | 34,457 |
Undrawn credit lines | 58,041 | 53,151 |
Total contingent loans | 114,295 | 92,429 |
Provision for contingencies loans | (118) | (217) |
Contingent loans, net | 114,177 | 92,212 |
Amount covered by guarantee: | ||
Mortgage | 28,208 | 27,928 |
Pledge | 1,417 | |
Others | 47,135 | 39,022 |
Net collateral | 75,343 | 68,367 |
Production and Services Companies | Commercial loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 221,351 | 243,989 |
Investment Companies | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 132,366 | 169,403 |
Allowance for loan losses | (363) | (394) |
Net loans | 132,003 | 169,009 |
Contingent loans: | ||
Guarantees and sureties | 14,963 | 21,146 |
Letters of credits | 2,776 | 1,170 |
Bank guarantees | 30,122 | 23,071 |
Undrawn credit lines | 14,674 | 13,907 |
Total contingent loans | 62,535 | 59,294 |
Provision for contingencies loans | (38) | (81) |
Contingent loans, net | 62,497 | 59,213 |
Amount covered by guarantee: | ||
Mortgage | 52,108 | 53,835 |
Others | 13,219 | 14,186 |
Net collateral | 65,327 | 68,021 |
Investment Companies | Commercial loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 132,366 | 169,403 |
Individuals | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 68,013 | 49,831 |
Allowance for loan losses | (302) | (241) |
Net loans | 67,711 | 49,590 |
Contingent loans: | ||
Undrawn credit lines | 19,160 | 15,179 |
Total contingent loans | 19,160 | 15,179 |
Provision for contingencies loans | (17) | (48) |
Contingent loans, net | 19,143 | 15,131 |
Amount covered by guarantee: | ||
Mortgage | 69,292 | 53,181 |
Others | 3,694 | 2,175 |
Net collateral | 72,986 | 55,356 |
Individuals | Commercial loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 13,183 | 8,871 |
Individuals | Residential mortgage loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | 44,756 | 33,695 |
Individuals | Consumer loans | ||
Minimum participation to be related parties" 5% of shares | ||
Gross loans | $ 10,074 | $ 7,265 |
Related Party Transactions (Oth
Related Party Transactions (Other assets and liabilities, Income and expenses with related parties) (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||
Cash and due from banks | $ 23,086 | $ 57,563 |
Transactions in the course of collection | 35,469 | 13,249 |
Financial assets held-for-trading | 205 | |
Derivative instruments | 415,683 | 323,186 |
Financial assets | 14,690 | |
Other assets | 80,569 | 114,536 |
Total | 569,702 | 508,534 |
Liabilities | ||
Demand deposits | 169,607 | 173,715 |
Transactions in the course of payment | 58,987 | 16,116 |
Cash collateral on securities lent and repurchase agreements | 84,465 | 25,227 |
Savings accounts and time deposits | 124,362 | 169,322 |
Derivative instruments | 337,299 | 370,356 |
Borrowings from financial institutions | 228,269 | 251,555 |
Other liabilities | 115,145 | 51,814 |
Total | 1,118,134 | 1,058,105 |
Type of income or expense recognized | ||
Interest and revenue income | 21,736 | 26,485 |
Interest and revenue expense | 7,196 | 9,332 |
Fees and commission income | 70,286 | 65,995 |
Fees and commission expense | 74,205 | 69,843 |
Derivative instruments income | 85,500 | 33,540 |
Derivative instruments expense | 42,365 | 97,416 |
Other financial operations income | 1 | |
Release or established of provision for credit risk expense | 28 | 252 |
Operating expenses | 105,734 | 100,389 |
Other income | 446 | 3,723 |
Other expense | 45 | 56 |
Comder Contraparte Central S.A | ||
Type of income or expense recognized | ||
Net loss | $ 71,297 | $ 96,075 |
Related Party Transactions (Pay
Related Party Transactions (Payment to key management personnel) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018CLP ($)item | Dec. 31, 2017CLP ($)item | |
Disclosure of transactions between related parties [line items] | ||
Remunerations | $ 3,926 | $ 4,149 |
Short-term benefits | 3,476 | 3,302 |
Contract termination indemnity | 1,037 | 276 |
Total | $ 8,439 | $ 7,727 |
Total number of executives | item | 20 | 19 |
Directors expenses and remuneration | ||
Remunerations | $ 1,217 | $ 1,181 |
Fees for attending Board meetings | 256 | 246 |
Fees for attending Committees and Subsidiary Board meetings | 1,038 | 1,070 |
Consulting | 8 | |
Total | 2,511 | 2,505 |
Fees paid for advisory services | 206 | 334 |
Travel and other related expenses | 92 | 116 |
Banchile Corredores de Seguros Ltda. | ||
Directors expenses and remuneration | ||
Fees for attending Committees and Subsidiary Board meetings | $ 12 | $ 18 |
CEO | ||
Disclosure of transactions between related parties [line items] | ||
Total number of executives | item | 1 | 1 |
CEOs of subsidiaries | ||
Disclosure of transactions between related parties [line items] | ||
Total number of executives | item | 6 | 6 |
Division Managers | ||
Disclosure of transactions between related parties [line items] | ||
Total number of executives | item | 13 | 12 |
Pablo Granifo Lavin | ||
Directors expenses and remuneration | ||
Remunerations | $ 569 | $ 553 |
Fees for attending Board meetings | 56 | 53 |
Fees for attending Committees and Subsidiary Board meetings | 374 | 395 |
Total | 999 | 1,001 |
Remuneration including provision for an incentive subject to Bank's forecasted earnings | 391 | 380 |
Andronico Luksic Craig | ||
Directors expenses and remuneration | ||
Remunerations | 176 | 172 |
Fees for attending Board meetings | 10 | 8 |
Total | 186 | 180 |
Jaime Estevez Valencia | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 29 | 28 |
Fees for attending Committees and Subsidiary Board meetings | 134 | 134 |
Total | 222 | 219 |
Gonzalo Menendez Duque | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 27 | 23 |
Fees for attending Committees and Subsidiary Board meetings | 119 | 113 |
Consulting | 8 | |
Total | 205 | 201 |
Francisco Perez Mackenna | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 20 | 23 |
Fees for attending Committees and Subsidiary Board meetings | 58 | 75 |
Total | 137 | 155 |
Rodrigo Manubens Moltedo | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 28 | 28 |
Fees for attending Committees and Subsidiary Board meetings | 54 | 53 |
Total | 141 | 138 |
Thomas Furst Freiwirth | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 21 | 19 |
Fees for attending Committees and Subsidiary Board meetings | 42 | 36 |
Total | 122 | 112 |
Jean-Paul Luksic Fontbona | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 57 |
Fees for attending Board meetings | 11 | 12 |
Total | 70 | 69 |
Andres Ergas Heymann | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 43 |
Fees for attending Board meetings | 27 | 20 |
Fees for attending Committees and Subsidiary Board meetings | 70 | 41 |
Total | 156 | 104 |
Alfredo Ergas Segal | ||
Directors expenses and remuneration | ||
Remunerations | 59 | 43 |
Fees for attending Board meetings | 27 | 20 |
Fees for attending Committees and Subsidiary Board meetings | 71 | 49 |
Total | 157 | 112 |
Jorge Awad Mehech | ||
Directors expenses and remuneration | ||
Remunerations | 14 | |
Fees for attending Board meetings | 6 | |
Fees for attending Committees and Subsidiary Board meetings | 26 | |
Total | 46 | |
Jorge Ergas Heymann | ||
Directors expenses and remuneration | ||
Remunerations | 14 | |
Fees for attending Board meetings | 6 | |
Fees for attending Committees and Subsidiary Board meetings | 19 | |
Total | 39 | |
Others | ||
Directors expenses and remuneration | ||
Fees for attending Committees and Subsidiary Board meetings | 116 | 129 |
Total | $ 116 | $ 129 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities-Level hierarchy classification and figures (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Level hierarchy classification and figures | ||
Financial Assets | $ 4,312,504 | $ 4,390,903 |
Financial Liabilities | $ 1,528,234 | 1,392,995 |
Instruments of level 3 have denomination Investment Grade | 80.00% | |
Financial instruments correspond to domestic issuers | 100.00% | |
Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | $ 1,478,533 | 1,220,092 |
Financial Liabilities | 1,490,252 | 1,306,777 |
Hedge derivative contracts | ||
Level hierarchy classification and figures | ||
Financial Assets | 35,414 | 27,849 |
Financial Liabilities | 37,982 | 86,218 |
Fair value hedge | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,116 | 277 |
Financial Liabilities | 6,164 | 5,330 |
Cash Flow hedge | ||
Level hierarchy classification and figures | ||
Financial Assets | 34,298 | 27,572 |
Financial Liabilities | 31,818 | 80,888 |
Financial assets held-for-trading | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,745,366 | 1,538,578 |
Financial assets held-for-trading | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,523,472 | 1,317,164 |
Financial assets held-for-trading | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 129,607 | 221,092 |
Financial assets held-for-trading | Instruments issued by foreign institutions | ||
Level hierarchy classification and figures | ||
Financial Assets | 4,446 | 322 |
Derivatives | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,513,947 | 1,247,941 |
Forwards | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 735,444 | 506,614 |
Financial Liabilities | 631,089 | 575,137 |
Swaps | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 738,130 | 710,123 |
Financial Liabilities | 854,708 | 727,765 |
Call Options | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 4,839 | 514 |
Financial Liabilities | 2,921 | 472 |
Put Options | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 120 | 2,841 |
Financial Liabilities | 1,534 | 3,403 |
Financial assets available-for-sale | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,526,315 | |
Financial assets available-for-sale | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 356,368 | |
Financial assets available-for-sale | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,168,913 | |
Financial assets available-for-sale | Instruments issued by foreign institutions | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,034 | |
Other assets | ||
Level hierarchy classification and figures | ||
Financial Assets | 78,069 | |
Mutual fund investments | ||
Level hierarchy classification and figures | ||
Financial Assets | 87,841 | 78,069 |
Financial assets at fair value through other comprehensive income | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,053,191 | 1,526,315 |
Financial assets at fair value through other comprehensive income | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,043,440 | |
Financial assets at fair value through other comprehensive income | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 9,751 | |
Financial assets at fair value through other comprehensive income | Instruments issued by the Chilean Governments and Central Bank of Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 164,222 | |
Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 770,674 | |
Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 8,939 | |
Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 108,544 | |
Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 812 | |
Level 1 | ||
Level hierarchy classification and figures | ||
Financial Assets | 372,497 | 932,661 |
Level 1 | Financial assets held-for-trading | ||
Level hierarchy classification and figures | ||
Financial Assets | 272,642 | 624,312 |
Level 1 | Financial assets held-for-trading | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 178,692 | 623,276 |
Level 1 | Financial assets held-for-trading | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,663 | 714 |
Level 1 | Financial assets held-for-trading | Instruments issued by foreign institutions | ||
Level hierarchy classification and figures | ||
Financial Assets | 4,446 | 322 |
Level 1 | Financial assets available-for-sale | ||
Level hierarchy classification and figures | ||
Financial Assets | 230,280 | |
Level 1 | Financial assets available-for-sale | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 229,296 | |
Level 1 | Financial assets available-for-sale | Instruments issued by foreign institutions | ||
Level hierarchy classification and figures | ||
Financial Assets | 984 | |
Level 1 | Other assets | ||
Level hierarchy classification and figures | ||
Financial Assets | 78,069 | |
Level 1 | Mutual fund investments | ||
Level hierarchy classification and figures | ||
Financial Assets | 87,841 | 78,069 |
Level 1 | Financial assets at fair value through other comprehensive income | ||
Level hierarchy classification and figures | ||
Financial Assets | 99,855 | 230,280 |
Level 1 | Financial assets at fair value through other comprehensive income | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 99,132 | |
Level 1 | Financial assets at fair value through other comprehensive income | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 723 | |
Level 1 | Financial assets at fair value through other comprehensive income | Instruments issued by the Chilean Governments and Central Bank of Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 99,132 | |
Level 1 | Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 723 | |
Level 2 | ||
Level hierarchy classification and figures | ||
Financial Assets | 3,896,031 | 3,403,915 |
Financial Liabilities | 1,528,234 | 1,392,995 |
Level 2 | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,478,533 | 1,220,092 |
Financial Liabilities | 1,490,252 | 1,306,777 |
Level 2 | Hedge derivative contracts | ||
Level hierarchy classification and figures | ||
Financial Assets | 35,414 | 27,849 |
Financial Liabilities | 37,982 | 86,218 |
Level 2 | Fair value hedge | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,116 | 277 |
Financial Liabilities | 6,164 | 5,330 |
Level 2 | Cash Flow hedge | ||
Level hierarchy classification and figures | ||
Financial Assets | 34,298 | 27,572 |
Financial Liabilities | 31,818 | 80,888 |
Level 2 | Financial assets held-for-trading | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,451,858 | 906,254 |
Level 2 | Financial assets held-for-trading | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,344,780 | 693,888 |
Level 2 | Financial assets held-for-trading | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 107,078 | 212,366 |
Level 2 | Derivatives | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,513,947 | 1,247,941 |
Level 2 | Forwards | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 735,444 | 506,614 |
Financial Liabilities | 631,089 | 575,137 |
Level 2 | Swaps | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 738,130 | 710,123 |
Financial Liabilities | 854,708 | 727,765 |
Level 2 | Call Options | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 4,839 | 514 |
Financial Liabilities | 2,921 | 472 |
Level 2 | Put Options | Derivative contracts for trading purposes | ||
Level hierarchy classification and figures | ||
Financial Assets | 120 | 2,841 |
Financial Liabilities | 1,534 | 3,403 |
Level 2 | Financial assets available-for-sale | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,249,720 | |
Level 2 | Financial assets available-for-sale | Instruments issued by the Chilean Governments and Central Bank of Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 127,072 | |
Level 2 | Financial assets available-for-sale | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 1,122,648 | |
Level 2 | Financial assets at fair value through other comprehensive income | ||
Level hierarchy classification and figures | ||
Financial Assets | 930,226 | 1,249,720 |
Level 2 | Financial assets at fair value through other comprehensive income | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 921,287 | |
Level 2 | Financial assets at fair value through other comprehensive income | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 8,939 | |
Level 2 | Financial assets at fair value through other comprehensive income | Instruments issued by the Chilean Governments and Central Bank of Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 65,090 | |
Level 2 | Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 747,653 | |
Level 2 | Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 8,939 | |
Level 2 | Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 108,544 | |
Level 3 | ||
Level hierarchy classification and figures | ||
Financial Assets | 43,976 | 54,327 |
Level 3 | Financial assets held-for-trading | ||
Level hierarchy classification and figures | ||
Financial Assets | 20,866 | 8,012 |
Level 3 | Financial assets held-for-trading | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 20,866 | 8,012 |
Level 3 | Financial assets available-for-sale | ||
Level hierarchy classification and figures | ||
Financial Assets | 46,315 | |
Level 3 | Financial assets available-for-sale | Other instruments issued in Chile | ||
Level hierarchy classification and figures | ||
Financial Assets | 46,265 | |
Level 3 | Financial assets available-for-sale | Instruments issued by foreign institutions | ||
Level hierarchy classification and figures | ||
Financial Assets | 50 | |
Level 3 | Financial assets at fair value through other comprehensive income | ||
Level hierarchy classification and figures | ||
Financial Assets | 23,110 | $ 46,315 |
Level 3 | Financial assets at fair value through other comprehensive income | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 23,021 | |
Level 3 | Financial assets at fair value through other comprehensive income | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 89 | |
Level 3 | Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Debt instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | 23,021 | |
Level 3 | Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Trading equity instruments | ||
Level hierarchy classification and figures | ||
Financial Assets | $ 89 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities-Level 3 Reconciliation (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Level 3 Reconciliation | |||
Assets at beginning of period | $ 32,561,437 | $ 31,357,304 | |
Assets at end of period | $ 51,351,567 | 35,617,447 | 32,561,437 |
Level 3 | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 54,327 | 85,019 | |
Gain (Loss) Recognized in Income | 2,715 | (4,193) | |
Gain (Loss) Recognized in Equity | (253) | 1,133 | |
Purchases | 48,740 | 12,368 | |
Sales | (56,582) | (39,376) | |
Transfer from Level 1 and 2 | 5,057 | ||
Transfer to Level 1 and 2 | (4,971) | (5,681) | |
Assets at end of period | 43,976 | 54,327 | |
Level 3 | Financial assets held-for-trading | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 8,012 | 8,960 | |
Gain (Loss) Recognized in Income | 176 | (7) | |
Purchases | 48,740 | 7,446 | |
Sales | (36,062) | (10,772) | |
Transfer from Level 1 and 2 | 2,385 | ||
Assets at end of period | 20,866 | 8,012 | |
Level 3 | Financial assets held-for-trading | Other instruments issued in Chile | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 8,012 | 8,960 | |
Gain (Loss) Recognized in Income | 176 | (7) | |
Purchases | 48,740 | 7,446 | |
Sales | (36,062) | (10,772) | |
Transfer from Level 1 and 2 | 2,385 | ||
Assets at end of period | 20,866 | 8,012 | |
Level 3 | Financial assets available-for-sale | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 46,315 | 76,059 | |
Gain (Loss) Recognized in Income | (4,186) | ||
Gain (Loss) Recognized in Equity | 1,133 | ||
Purchases | 4,922 | ||
Sales | (28,604) | ||
Transfer from Level 1 and 2 | 2,672 | ||
Transfer to Level 1 and 2 | (5,681) | ||
Assets at end of period | 46,315 | ||
Level 3 | Financial assets available-for-sale | Other instruments issued in Chile | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 46,265 | 76,005 | |
Gain (Loss) Recognized in Income | (4,186) | ||
Gain (Loss) Recognized in Equity | 1,137 | ||
Purchases | 4,922 | ||
Sales | (28,604) | ||
Transfer from Level 1 and 2 | 2,672 | ||
Transfer to Level 1 and 2 | (5,681) | ||
Assets at end of period | 46,265 | ||
Level 3 | Financial assets available-for-sale | Instruments issued by foreign institutions | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 50 | 54 | |
Gain (Loss) Recognized in Equity | (4) | ||
Assets at end of period | 50 | ||
Level 3 | Financial assets at fair value through other comprehensive income | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 46,315 | ||
Gain (Loss) Recognized in Income | 2,539 | ||
Gain (Loss) Recognized in Equity | (253) | ||
Sales | (20,520) | ||
Transfer to Level 1 and 2 | (4,971) | ||
Assets at end of period | 23,110 | 46,315 | |
Level 3 | Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Debt instruments | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 46,265 | ||
Gain (Loss) Recognized in Income | 2,539 | ||
Gain (Loss) Recognized in Equity | (292) | ||
Sales | (20,520) | ||
Transfer to Level 1 and 2 | (4,971) | ||
Assets at end of period | 23,021 | 46,265 | |
Level 3 | Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Trading equity instruments | |||
Level 3 Reconciliation | |||
Assets at beginning of period | 50 | ||
Gain (Loss) Recognized in Equity | 39 | ||
Assets at end of period | $ 89 | $ 50 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities-Transfers between levels (Details) - Instruments issued by the Chilean Governments and Central Bank of Chile - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets held-for-trading | ||
Transfers between levels | ||
Transfers from level 1 to level 2 | $ 496 | $ 4,688 |
Transfers from level 2 to level 1 | 3,498 | |
Instruments issued by foreign institutions | ||
Transfers between levels | ||
Transfers from level 2 to level 1 | $ 4,373 | |
Financial assets at fair value through other comprehensive income | ||
Transfers between levels | ||
Transfers from level 1 to level 2 | $ 9,444 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities-Sensitivity of level 3 instruments to changes in key assumptions of the input parameters for the valuation model (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 4,312,504 | $ 4,390,903 |
Level 3 | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | 43,976 | 54,327 |
Sensitivity to changes in key assumptions of models | $ (221) | $ (443) |
Reasonably possible change in risk assumption (as a percentage) | 10.00% | 10.00% |
Level 3 | Financial assets held-for-trading | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 20,866 | $ 8,012 |
Sensitivity to changes in key assumptions of models | $ (26) | $ (26) |
Reasonably possible change in risk assumption (as a percentage) | 10.00% | 10.00% |
Level 3 | Financial assets held-for-trading | Other instruments issued in Chile | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 20,866 | $ 8,012 |
Sensitivity to changes in key assumptions of models | $ (26) | $ (26) |
Reasonably possible change in risk assumption (as a percentage) | 10.00% | 10.00% |
Level 3 | Financial assets available-for-sale | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 46,315 | |
Sensitivity to changes in key assumptions of models | $ (417) | |
Reasonably possible change in risk assumption (as a percentage) | 10.00% | 10.00% |
Level 3 | Financial assets available-for-sale | Other instruments issued in Chile | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 46,265 | |
Sensitivity to changes in key assumptions of models | $ (417) | |
Reasonably possible change in risk assumption (as a percentage) | 10.00% | 10.00% |
Level 3 | Financial assets available-for-sale | Instruments issued by foreign institutions | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 50 | |
Level 3 | Financial assets at fair value through other comprehensive income | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 23,110 | |
Sensitivity to changes in key assumptions of models | (195) | |
Level 3 | Financial assets at fair value through other comprehensive income | Other instruments issued in Chile | Debt instruments | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | 23,021 | |
Sensitivity to changes in key assumptions of models | (195) | |
Level 3 | Financial assets at fair value through other comprehensive income | Instruments issued by foreign institutions | Trading equity instruments | ||
Fair Value of Financial Assets and Liabilities | ||
Financial Assets | $ 89 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities-Fair value of Financial Assets/Liabilities not measured at fair value on the balance sheet (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instrument disclosures | ||
Financial Assets | $ 4,312,504 | $ 4,390,903 |
Financial Liabilities | 1,528,234 | 1,392,995 |
Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 30,102,202 | 27,120,715 |
Financial Liabilities | 29,699,243 | 27,029,913 |
Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 30,270,446 | 27,185,188 |
Financial liabilities at fair value | 29,838,379 | 27,161,529 |
Cash and other transactions | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 1,266,564 | 1,405,002 |
Cash and other transactions | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 1,266,564 | 1,405,002 |
Cash and due from banks | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 880,081 | 1,057,393 |
Cash and due from banks | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 880,081 | 1,057,393 |
Transactions in the course of collection | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 289,194 | 255,968 |
Transactions in the course of collection | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 289,194 | 255,968 |
Cash collateral on securities borrowed and reverse repurchase agreements | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 97,289 | 91,641 |
Cash collateral on securities borrowed and reverse repurchase agreements | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 97,289 | 91,641 |
Loans and advances to banks | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 1,494,384 | 760,021 |
Loans and advances to banks | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 1,486,670 | 760,021 |
Domestic banks | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 99,776 | 119,998 |
Domestic banks | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 99,776 | 119,998 |
Central Bank of Chile | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 1,100,831 | 350,916 |
Central Bank of Chile | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 1,100,831 | 350,916 |
Foreign banks | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 293,777 | 289,107 |
Foreign banks | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 286,063 | 289,107 |
Loans to customers | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 27,341,254 | 24,955,692 |
Loans to customers | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 27,517,212 | 25,020,165 |
Commercial loans | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 15,209,534 | 13,739,589 |
Commercial loans | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 14,949,852 | 13,477,466 |
Mortgage loans | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 8,017,743 | 7,445,221 |
Mortgage loans | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 8,451,099 | 7,769,694 |
Consumer loans | Book Value | ||
Financial instrument disclosures | ||
Financial Assets | 4,113,977 | 3,770,882 |
Consumer loans | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial assets at fair value | 4,116,261 | 3,773,005 |
Current and saving accounts and other financial obligations | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 22,223,691 | 20,540,938 |
Current and saving accounts and other financial obligations | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 22,191,058 | 20,540,105 |
Current accounts and other demand deposits | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 9,584,488 | 8,915,706 |
Current accounts and other demand deposits | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 9,584,488 | 8,915,706 |
Transactions in the course of payment | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 44,436 | 29,871 |
Transactions in the course of payment | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 44,436 | 29,871 |
Cash collateral on securities lent and reverse repurchase agreements | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 303,820 | 195,392 |
Cash collateral on securities lent and reverse repurchase agreements | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 303,820 | 195,392 |
Saving accounts and time deposits | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 10,656,174 | 10,067,778 |
Saving accounts and time deposits | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 10,632,350 | 10,073,030 |
Borrowings from financial institutions | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 1,516,759 | 1,195,028 |
Borrowings from financial institutions | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 1,506,940 | 1,188,943 |
Other financial obligations | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 118,014 | 137,163 |
Other financial obligations | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 119,024 | 137,163 |
Debt issued | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 7,475,552 | 6,488,975 |
Debt issued | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 7,647,321 | 6,621,424 |
Letters of credit for residential purposes | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 15,040 | 21,059 |
Letters of credit for residential purposes | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 15,982 | 22,542 |
Letters of credit for general purposes | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 1,328 | 2,365 |
Letters of credit for general purposes | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 1,411 | 2,532 |
Bonds | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 6,772,990 | 5,769,334 |
Bonds | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | 6,897,317 | 5,896,424 |
Subordinated bonds | Book Value | ||
Financial instrument disclosures | ||
Financial Liabilities | 686,194 | 696,217 |
Subordinated bonds | Fair Value - not measured at fair value | ||
Financial instrument disclosures | ||
Financial liabilities at fair value | $ 732,611 | $ 699,926 |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities-Estimated Fair Value (Details) - Fair Value - not measured at fair value - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | ||
Financial Assets | $ 30,270,446 | $ 27,185,188 |
Financial Liabilities | 29,838,379 | 27,161,529 |
Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 2,467,171 | 2,165,023 |
Financial Liabilities | 9,932,744 | 9,278,132 |
Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 6,914,710 | 5,921,498 |
Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 27,803,275 | 25,020,165 |
Financial Liabilities | 12,990,925 | 11,961,899 |
Cash and other transactions | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,266,564 | 1,405,002 |
Cash and other transactions | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,266,564 | 1,405,002 |
Cash and due from banks | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 880,081 | 1,057,393 |
Cash and due from banks | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 880,081 | 1,057,393 |
Transactions in the course of collection | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 289,194 | 255,968 |
Transactions in the course of collection | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 289,194 | 255,968 |
Cash collateral on securities borrowed and reverse repurchase agreements | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 97,289 | 91,641 |
Cash collateral on securities borrowed and reverse repurchase agreements | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 97,289 | 91,641 |
Loans and advances to banks | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,486,670 | 760,021 |
Loans and advances to banks | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,200,607 | 760,021 |
Loans and advances to banks | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 286,063 | |
Domestic banks | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 99,776 | 119,998 |
Domestic banks | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 99,776 | 119,998 |
Central Bank of Chile | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,100,831 | 350,916 |
Central Bank of Chile | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 1,100,831 | 350,916 |
Foreign banks | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 286,063 | 289,107 |
Foreign banks | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 289,107 | |
Foreign banks | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 286,063 | |
Loans to customers | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 27,517,212 | 25,020,165 |
Loans to customers | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 27,517,212 | 25,020,165 |
Commercial loans | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 14,949,852 | 13,477,466 |
Commercial loans | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 14,949,852 | 13,477,466 |
Mortgage loans | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 8,451,099 | 7,769,694 |
Mortgage loans | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 8,451,099 | 7,769,694 |
Consumer loans | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 4,116,261 | 3,773,005 |
Consumer loans | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Assets | 4,116,261 | 3,773,005 |
Current and saving accounts and other financial obligations | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 22,191,058 | 20,540,105 |
Current and saving accounts and other financial obligations | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 9,932,744 | 9,278,132 |
Current and saving accounts and other financial obligations | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 12,258,314 | 11,261,973 |
Current accounts and other demand deposits | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 9,584,488 | 8,915,706 |
Current accounts and other demand deposits | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 9,584,488 | 8,915,706 |
Transactions in the course of payment | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 44,436 | 29,871 |
Transactions in the course of payment | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 44,436 | 29,871 |
Cash collateral on securities lent and reverse repurchase agreements | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 303,820 | 195,392 |
Cash collateral on securities lent and reverse repurchase agreements | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 303,820 | 195,392 |
Saving accounts and time deposits | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 10,632,350 | 10,073,030 |
Saving accounts and time deposits | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 10,632,350 | 10,073,030 |
Borrowings from financial institutions | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 1,506,940 | 1,188,943 |
Borrowings from financial institutions | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 1,506,940 | 1,188,943 |
Other financial obligations | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 119,024 | 137,163 |
Other financial obligations | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 137,163 | |
Other financial obligations | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 119,024 | |
Debt issued | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 7,647,321 | 6,621,424 |
Debt issued | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 6,914,710 | 5,921,498 |
Debt issued | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 732,611 | 699,926 |
Letters of credit for residential purposes | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 15,982 | 22,542 |
Letters of credit for residential purposes | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 15,982 | 22,542 |
Letters of credit for general purposes | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 1,411 | 2,532 |
Letters of credit for general purposes | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 1,411 | 2,532 |
Bonds | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 6,897,317 | 5,896,424 |
Bonds | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 6,897,317 | 5,896,424 |
Subordinated bonds | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | 732,611 | 699,926 |
Subordinated bonds | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial Liabilities | $ 732,611 | $ 699,926 |
Fair Value of Financial Asset_9
Fair Value of Financial Assets and Liabilities-Offsetting of financial assets and liabilities (Details) - Derivatives - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Effect of offsetting on assets balance sheet | ||
Gross amount | $ 1,513,947 | $ 1,247,941 |
Net amounts reported on the balance sheet | 1,513,947 | 1,247,941 |
Related amount not offset | ||
Financial Instruments | (1,007,130) | (600,439) |
Financial Collateral | (30,036) | (34,212) |
Net amount | 476,781 | 613,290 |
Effect of offsetting on liabilities balance sheet | ||
Gross amount | 1,528,234 | 1,392,995 |
Net amounts reported on the balance sheet | 1,528,234 | 1,392,995 |
Related amount not offset | ||
Financial Instruments | (1,007,130) | (600,439) |
Financial Collateral | (233,450) | (83,523) |
Net amount | $ 287,654 | $ 709,033 |
Maturity of Assets and Liabil_3
Maturity of Assets and Liabilities (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Jan. 01, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) |
Assets | ||||||
Cash and due from banks | $ 1,268,860 | $ 880,081 | $ 1,057,393 | |||
Transactions in the course of collection | 416,946 | 289,194 | 255,968 | |||
Financial assets held-for-trading | 2,516,387 | 1,745,366 | 1,538,578 | |||
Receivables from repurchase agreements and security borrowing | 140,267 | 97,289 | 91,641 | |||
Derivative instruments | 2,182,738 | 1,513,947 | 1,247,941 | |||
Loans in advance to banks | 2,154,533 | 1,494,384 | 760,021 | |||
Loans to customers | 39,419,340 | 27,341,254 | 24,955,692 | |||
Financial assets available-for-sale | 1,526,315 | |||||
Financial assets at fair value through other comprehensive income | 1,518,441 | 1,053,191 | ||||
Investments in other companies | 60,917 | 42,252 | 35,771 | $ 30,314 | $ 25,849 | |
Intangible assets | 123,228 | 85,471 | 72,455 | 65,036 | ||
Property and equipment | 311,234 | 215,872 | 216,259 | |||
Investment properties | 20,095 | 13,938 | 14,306 | 14,674 | 15,042 | |
Current tax assets | 976 | 677 | 23,032 | |||
Deferred tax assets, net | 278,028 | 192,840 | 161,265 | |||
Other assets | 939,577 | 651,691 | 604,800 | |||
TOTAL ASSETS | 51,351,567 | 35,617,447 | 32,561,437 | 31,357,304 | ||
Liabilities | ||||||
Current accounts and other demand deposits | 13,818,466 | 9,584,488 | 8,915,706 | |||
Transactions in the course of payment | 64,066 | 44,436 | 29,871 | |||
Payables from repurchase agreements and security lending | 438,034 | 303,820 | 195,392 | |||
Saving accounts and time deposits | 15,363,573 | 10,656,174 | 10,067,778 | |||
Derivative instruments | 2,203,336 | 1,528,234 | 1,392,995 | |||
Borrowings from financial institutions | 2,186,792 | 1,516,759 | 1,195,028 | |||
Debt issued | 10,777,901 | 7,475,552 | 6,488,975 | |||
Other financial obligations | 170,147 | 118,014 | 137,163 | |||
Current tax liabilities | 30,167 | 20,924 | 3,453 | |||
Provisions | 294,040 | 203,946 | $ 217,512 | 194,537 | 187,568 | |
Employee benefits | 133,476 | 92,579 | 86,628 | |||
Other liabilities | 574,978 | 398,805 | 308,563 | |||
TOTAL LIABILITIES | $ 46,054,976 | 31,943,731 | 29,016,089 | 28,049,630 | ||
Gross Balance | ||||||
Assets | ||||||
Loans in advance to banks | 1,495,396 | 760,285 | ||||
Loans to customers | 27,926,632 | 25,451,513 | ||||
Intangible assets | 217,931 | 195,443 | 182,454 | 172,963 | ||
Property and equipment | 548,349 | 532,913 | ||||
TOTAL ASSETS | 36,203,837 | 33,057,522 | ||||
Accumulated Amortization | ||||||
Assets | ||||||
Loans to customers | (585,378) | $ (569,638) | (495,821) | (554,769) | ||
Intangible assets | (132,460) | (122,988) | $ (117,418) | $ (108,263) | ||
Liabilities | ||||||
Provisions for loans to customers | 585,378 | 495,821 | ||||
Provisions for loans and advances to banks | 1,012 | 264 | ||||
Due within 1 year | ||||||
Assets | ||||||
Cash and due from banks | 880,081 | 1,057,393 | ||||
Transactions in the course of collection | 289,194 | 255,968 | ||||
Financial assets held-for-trading | 1,745,366 | 1,538,578 | ||||
Receivables from repurchase agreements and security borrowing | 97,289 | 91,641 | ||||
Derivative instruments | 776,815 | 626,029 | ||||
Financial assets available-for-sale | 1,044,832 | |||||
Financial assets at fair value through other comprehensive income | 606,880 | |||||
Current tax assets | 677 | 23,032 | ||||
Other assets | 28,478 | 110,662 | ||||
Liabilities | ||||||
Current accounts and other demand deposits | 9,584,488 | 8,915,706 | ||||
Transactions in the course of payment | 44,436 | 29,871 | ||||
Payables from repurchase agreements and security lending | 303,820 | 195,392 | ||||
Saving accounts and time deposits | 10,065,943 | 9,831,087 | ||||
Derivative instruments | 719,300 | 653,073 | ||||
Borrowings from financial institutions | 1,437,461 | 1,121,026 | ||||
Debt issued | 1,243,357 | 1,076,689 | ||||
Other financial obligations | 111,024 | 119,499 | ||||
Provisions | 178,486 | 194,073 | ||||
Employee benefits | 26,855 | 25,159 | ||||
Other liabilities | 36,081 | 49,672 | ||||
TOTAL LIABILITIES | 23,751,251 | 22,211,247 | ||||
Due within 1 year | Gross Balance | ||||||
Assets | ||||||
Loans in advance to banks | 1,471,955 | 729,434 | ||||
Loans to customers | 11,070,708 | 9,823,290 | ||||
TOTAL ASSETS | 16,967,443 | 15,300,859 | ||||
Over 1 year | ||||||
Assets | ||||||
Derivative instruments | 737,132 | 621,912 | ||||
Financial assets available-for-sale | 481,483 | |||||
Financial assets at fair value through other comprehensive income | 446,311 | |||||
Investments in other companies | 42,252 | 35,771 | ||||
Intangible assets | 85,471 | 72,455 | ||||
Property and equipment | 215,872 | 216,259 | ||||
Investment properties | 13,938 | 14,306 | ||||
Deferred tax assets, net | 192,840 | 161,265 | ||||
Other assets | 623,213 | 494,138 | ||||
Liabilities | ||||||
Saving accounts and time deposits | 590,231 | 236,691 | ||||
Derivative instruments | 808,934 | 739,922 | ||||
Borrowings from financial institutions | 79,298 | 74,002 | ||||
Debt issued | 6,232,195 | 5,412,286 | ||||
Other financial obligations | 6,990 | 17,664 | ||||
Current tax liabilities | 20,924 | 3,453 | ||||
Provisions | 25,460 | 464 | ||||
Employee benefits | 65,724 | 61,469 | ||||
Other liabilities | 362,724 | 258,891 | ||||
TOTAL LIABILITIES | 8,192,480 | 6,804,842 | ||||
Over 1 year | Gross Balance | ||||||
Assets | ||||||
Loans in advance to banks | 23,441 | 30,851 | ||||
Loans to customers | 16,855,924 | 15,628,223 | ||||
TOTAL ASSETS | $ 19,236,394 | $ 17,756,663 |
Risk Management - Risk Manageme
Risk Management - Risk Management Structure (Details) | 12 Months Ended | |
Dec. 31, 2018CLF ( )director | Dec. 31, 2017 | |
Risk Management | ||
Number of directors in Finance, International and Financial Risk Committee | 4 | |
Minimum amount for review of approved application by Directors Credit Committee | | 750,000 | |
Number of directors in Portfolio Risk Committee | 2 | |
Maximum exposure to credit risk does not exceed (in percentage) | 10.00% | 10.00% |
Risk Management - Portfolio Con
Risk Management - Portfolio Concentration Credit Risk Geographic Region (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and due from banks | ||
Credit risk | ||
Financial assets | $ 880,081 | $ 1,057,393 |
Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,745,366 | 1,538,578 |
Cash collateral on securities borrowed and reverse repurchase agreements | ||
Credit risk | ||
Financial assets | 97,289 | 91,641 |
Loans and advances to banks | ||
Credit risk | ||
Financial assets | 1,495,396 | 760,285 |
Central Bank of Chile | ||
Credit risk | ||
Financial assets | 1,100,831 | 350,916 |
Domestic banks | ||
Credit risk | ||
Financial assets | 100,023 | 120,017 |
Foreign banks | ||
Credit risk | ||
Financial assets | 294,542 | 289,352 |
Loans to customers | ||
Credit risk | ||
Financial assets | 27,926,632 | 25,451,513 |
Commercial loans | ||
Credit risk | ||
Financial assets | 15,438,398 | 13,960,818 |
Mortgage loans | ||
Credit risk | ||
Financial assets | 8,052,073 | 7,477,236 |
Consumer loans | ||
Credit risk | ||
Financial assets | 4,436,161 | 4,013,459 |
Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,526,315 | |
FVOCI | ||
Credit risk | ||
Financial assets | 1,053,191 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,523,472 | 1,317,164 |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 356,368 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | FVOCI | ||
Credit risk | ||
Financial assets | 164,222 | |
Other instruments issued in Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 129,607 | 221,092 |
Other instruments issued in Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,168,913 | |
Other instruments issued in Chile | FVOCI | ||
Credit risk | ||
Financial assets | 779,613 | |
Instruments issued by foreign institutions | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 4,446 | 322 |
Instruments issued by foreign institutions | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,034 | |
Instruments issued by foreign institutions | FVOCI | ||
Credit risk | ||
Financial assets | 109,356 | |
Mutual fund investments | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 87,841 | |
Derivative contracts for trading purposes | ||
Credit risk | ||
Financial assets | 1,478,533 | 1,220,092 |
Derivative contracts for trading purposes | Forwards | ||
Credit risk | ||
Financial assets | 735,444 | 506,614 |
Derivative contracts for trading purposes | Swaps | ||
Credit risk | ||
Financial assets | 738,130 | 710,123 |
Derivative contracts for trading purposes | Call Options | ||
Credit risk | ||
Financial assets | 4,839 | 514 |
Derivative contracts for trading purposes | Put Options | ||
Credit risk | ||
Financial assets | 120 | 2,841 |
Hedge derivative contracts | ||
Credit risk | ||
Financial assets | 35,414 | 27,849 |
Hedge derivative contracts | Swaps | ||
Credit risk | ||
Financial assets | 35,414 | 27,849 |
Domestic banks | Cash and due from banks | ||
Credit risk | ||
Financial assets | 773,368 | 695,213 |
Domestic banks | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,740,920 | 1,538,256 |
Domestic banks | Cash collateral on securities borrowed and reverse repurchase agreements | ||
Credit risk | ||
Financial assets | 97,289 | 91,641 |
Domestic banks | Loans and advances to banks | ||
Credit risk | ||
Financial assets | 1,200,854 | 470,933 |
Domestic banks | Central Bank of Chile | ||
Credit risk | ||
Financial assets | 1,100,831 | 350,916 |
Domestic banks | Domestic banks | ||
Credit risk | ||
Financial assets | 100,023 | 120,017 |
Domestic banks | Loans to customers | ||
Credit risk | ||
Financial assets | 27,833,088 | 25,393,211 |
Domestic banks | Commercial loans | ||
Credit risk | ||
Financial assets | 15,344,854 | 13,902,516 |
Domestic banks | Mortgage loans | ||
Credit risk | ||
Financial assets | 8,052,073 | 7,477,236 |
Domestic banks | Consumer loans | ||
Credit risk | ||
Financial assets | 4,436,161 | 4,013,459 |
Domestic banks | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,525,281 | |
Domestic banks | FVOCI | ||
Credit risk | ||
Financial assets | 943,835 | |
Domestic banks | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,523,472 | 1,317,164 |
Domestic banks | Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 356,368 | |
Domestic banks | Instruments issued by the Chilean Governments and Central Bank of Chile | FVOCI | ||
Credit risk | ||
Financial assets | 164,222 | |
Domestic banks | Other instruments issued in Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 129,607 | 221,092 |
Domestic banks | Other instruments issued in Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,168,913 | |
Domestic banks | Other instruments issued in Chile | FVOCI | ||
Credit risk | ||
Financial assets | 779,613 | |
Domestic banks | Mutual fund investments | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 87,841 | |
Domestic banks | Derivative contracts for trading purposes | ||
Credit risk | ||
Financial assets | 1,128,151 | 867,977 |
Domestic banks | Derivative contracts for trading purposes | Forwards | ||
Credit risk | ||
Financial assets | 670,595 | 392,130 |
Domestic banks | Derivative contracts for trading purposes | Swaps | ||
Credit risk | ||
Financial assets | 453,191 | 472,492 |
Domestic banks | Derivative contracts for trading purposes | Call Options | ||
Credit risk | ||
Financial assets | 4,309 | 514 |
Domestic banks | Derivative contracts for trading purposes | Put Options | ||
Credit risk | ||
Financial assets | 56 | 2,841 |
Domestic banks | Hedge derivative contracts | ||
Credit risk | ||
Financial assets | 4,547 | |
Domestic banks | Hedge derivative contracts | Swaps | ||
Credit risk | ||
Financial assets | 4,547 | |
United States | Cash and due from banks | ||
Credit risk | ||
Financial assets | 69,343 | 271,564 |
United States | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 4,446 | 322 |
United States | FVOCI | ||
Credit risk | ||
Financial assets | 108,544 | |
United States | Instruments issued by foreign institutions | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 4,446 | 322 |
United States | Instruments issued by foreign institutions | FVOCI | ||
Credit risk | ||
Financial assets | 108,544 | |
United States | Derivative contracts for trading purposes | ||
Credit risk | ||
Financial assets | 121,496 | 102,776 |
United States | Derivative contracts for trading purposes | Forwards | ||
Credit risk | ||
Financial assets | 23,082 | 23,162 |
United States | Derivative contracts for trading purposes | Swaps | ||
Credit risk | ||
Financial assets | 98,414 | 79,614 |
United States | Hedge derivative contracts | ||
Credit risk | ||
Financial assets | 14,348 | 8,632 |
United States | Hedge derivative contracts | Swaps | ||
Credit risk | ||
Financial assets | 14,348 | 8,632 |
Brazil | Loans and advances to banks | ||
Credit risk | ||
Financial assets | 209,693 | 158,524 |
Brazil | Foreign banks | ||
Credit risk | ||
Financial assets | 209,693 | 158,524 |
Brazil | Loans to customers | ||
Credit risk | ||
Financial assets | 354 | |
Brazil | Commercial loans | ||
Credit risk | ||
Financial assets | 354 | |
Other | Cash and due from banks | ||
Credit risk | ||
Financial assets | 37,370 | 90,616 |
Other | Loans and advances to banks | ||
Credit risk | ||
Financial assets | 84,849 | 130,828 |
Other | Foreign banks | ||
Credit risk | ||
Financial assets | 84,849 | 130,828 |
Other | Loans to customers | ||
Credit risk | ||
Financial assets | 93,190 | 58,302 |
Other | Commercial loans | ||
Credit risk | ||
Financial assets | 93,190 | 58,302 |
Other | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,034 | |
Other | FVOCI | ||
Credit risk | ||
Financial assets | 812 | |
Other | Instruments issued by foreign institutions | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,034 | |
Other | Instruments issued by foreign institutions | FVOCI | ||
Credit risk | ||
Financial assets | 812 | |
Other | Derivative contracts for trading purposes | ||
Credit risk | ||
Financial assets | 228,886 | 249,339 |
Other | Derivative contracts for trading purposes | Forwards | ||
Credit risk | ||
Financial assets | 41,767 | 91,322 |
Other | Derivative contracts for trading purposes | Swaps | ||
Credit risk | ||
Financial assets | 186,525 | 158,017 |
Other | Derivative contracts for trading purposes | Call Options | ||
Credit risk | ||
Financial assets | 530 | |
Other | Derivative contracts for trading purposes | Put Options | ||
Credit risk | ||
Financial assets | 64 | |
Other | Hedge derivative contracts | ||
Credit risk | ||
Financial assets | 16,519 | 19,217 |
Other | Hedge derivative contracts | Swaps | ||
Credit risk | ||
Financial assets | $ 16,519 | $ 19,217 |
Risk Management - Portfolio C_2
Risk Management - Portfolio Concentration Credit Risk Industry Sector (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and due from banks | ||
Credit risk | ||
Financial assets | $ 880,081 | $ 1,057,393 |
Cash and due from banks | Financial Services | ||
Credit risk | ||
Financial assets | 758,274 | 894,972 |
Cash and due from banks | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 121,807 | 162,421 |
Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,745,366 | 1,538,578 |
Financial assets held-for-trading | Financial Services | ||
Credit risk | ||
Financial assets | 221,894 | 221,414 |
Financial assets held-for-trading | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 1,434,986 | 1,062,558 |
Financial assets held-for-trading | Government | ||
Credit risk | ||
Financial assets | 88,486 | 254,606 |
Cash collateral on securities borrowed and reverse repurchase agreements | ||
Credit risk | ||
Financial assets | 97,289 | 91,641 |
Cash collateral on securities borrowed and reverse repurchase agreements | Financial Services | ||
Credit risk | ||
Financial assets | 29,031 | 32,555 |
Cash collateral on securities borrowed and reverse repurchase agreements | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 742 | |
Cash collateral on securities borrowed and reverse repurchase agreements | Government | ||
Credit risk | ||
Financial assets | 2,576 | |
Cash collateral on securities borrowed and reverse repurchase agreements | Trade | ||
Credit risk | ||
Financial assets | 37,520 | 24,717 |
Cash collateral on securities borrowed and reverse repurchase agreements | Mining | ||
Credit risk | ||
Financial assets | 5,017 | 12,522 |
Cash collateral on securities borrowed and reverse repurchase agreements | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 4,466 | 7,464 |
Cash collateral on securities borrowed and reverse repurchase agreements | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 3,096 | 13 |
Cash collateral on securities borrowed and reverse repurchase agreements | Fishing | ||
Credit risk | ||
Financial assets | 59 | 672 |
Cash collateral on securities borrowed and reverse repurchase agreements | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 15,637 | 7,382 |
Cash collateral on securities borrowed and reverse repurchase agreements | Services | ||
Credit risk | ||
Financial assets | 985 | 3,740 |
Cash collateral on securities borrowed and reverse repurchase agreements | Other | ||
Credit risk | ||
Financial assets | 736 | |
Loans and advances to banks | ||
Credit risk | ||
Financial assets | 1,495,396 | 760,285 |
Loans and advances to banks | Financial Services | ||
Credit risk | ||
Financial assets | 394,565 | 409,369 |
Loans and advances to banks | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 1,100,831 | 350,916 |
Central Bank of Chile | ||
Credit risk | ||
Financial assets | 1,100,831 | 350,916 |
Central Bank of Chile | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 1,100,831 | 350,916 |
Domestic banks | ||
Credit risk | ||
Financial assets | 100,023 | 120,017 |
Domestic banks | Financial Services | ||
Credit risk | ||
Financial assets | 100,023 | 120,017 |
Foreign banks | ||
Credit risk | ||
Financial assets | 294,542 | 289,352 |
Foreign banks | Financial Services | ||
Credit risk | ||
Financial assets | 294,542 | 289,352 |
Loans to customers | ||
Credit risk | ||
Financial assets | 27,926,632 | 25,451,513 |
Loans to customers | Financial Services | ||
Credit risk | ||
Financial assets | 2,122,599 | 1,851,649 |
Loans to customers | Retail (Individuals) | ||
Credit risk | ||
Financial assets | 12,488,234 | 11,490,695 |
Loans to customers | Trade | ||
Credit risk | ||
Financial assets | 2,324,325 | 2,035,129 |
Loans to customers | Manufacturing | ||
Credit risk | ||
Financial assets | 1,579,475 | 1,399,692 |
Loans to customers | Mining | ||
Credit risk | ||
Financial assets | 453,549 | 422,176 |
Loans to customers | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 461,351 | 565,695 |
Loans to customers | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 1,582,520 | 1,354,069 |
Loans to customers | Fishing | ||
Credit risk | ||
Financial assets | 156,472 | 145,266 |
Loans to customers | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 1,498,142 | 1,612,930 |
Loans to customers | Construction | ||
Credit risk | ||
Financial assets | 1,752,237 | 1,493,373 |
Loans to customers | Services | ||
Credit risk | ||
Financial assets | 2,109,491 | 1,964,238 |
Loans to customers | Other | ||
Credit risk | ||
Financial assets | 1,398,237 | 1,116,601 |
Commercial loans | ||
Credit risk | ||
Financial assets | 15,438,398 | 13,960,818 |
Commercial loans | Financial Services | ||
Credit risk | ||
Financial assets | 2,122,599 | 1,851,649 |
Commercial loans | Trade | ||
Credit risk | ||
Financial assets | 2,324,325 | 2,035,129 |
Commercial loans | Manufacturing | ||
Credit risk | ||
Financial assets | 1,579,475 | 1,399,692 |
Commercial loans | Mining | ||
Credit risk | ||
Financial assets | 453,549 | 422,176 |
Commercial loans | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 461,351 | 565,695 |
Commercial loans | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 1,582,520 | 1,354,069 |
Commercial loans | Fishing | ||
Credit risk | ||
Financial assets | 156,472 | 145,266 |
Commercial loans | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 1,498,142 | 1,612,930 |
Commercial loans | Construction | ||
Credit risk | ||
Financial assets | 1,752,237 | 1,493,373 |
Commercial loans | Services | ||
Credit risk | ||
Financial assets | 2,109,491 | 1,964,238 |
Commercial loans | Other | ||
Credit risk | ||
Financial assets | 1,398,237 | 1,116,601 |
Mortgage loans | ||
Credit risk | ||
Financial assets | 8,052,073 | 7,477,236 |
Mortgage loans | Retail (Individuals) | ||
Credit risk | ||
Financial assets | 8,052,073 | 7,477,236 |
Consumer loans | ||
Credit risk | ||
Financial assets | 4,436,161 | 4,013,459 |
Consumer loans | Retail (Individuals) | ||
Credit risk | ||
Financial assets | 4,436,161 | 4,013,459 |
Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,526,315 | |
Financial assets available-for-sale | Financial Services | ||
Credit risk | ||
Financial assets | 1,107,037 | |
Financial assets available-for-sale | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 207,474 | |
Financial assets available-for-sale | Government | ||
Credit risk | ||
Financial assets | 148,894 | |
Financial assets available-for-sale | Trade | ||
Credit risk | ||
Financial assets | 31,833 | |
Financial assets available-for-sale | Manufacturing | ||
Credit risk | ||
Financial assets | 8,589 | |
Financial assets available-for-sale | Mining | ||
Credit risk | ||
Financial assets | 7,662 | |
Financial assets available-for-sale | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 2,883 | |
Financial assets available-for-sale | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 6,972 | |
Financial assets available-for-sale | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 4,971 | |
FVOCI | ||
Credit risk | ||
Financial assets | 1,053,191 | |
FVOCI | Financial Services | ||
Credit risk | ||
Financial assets | 798,951 | |
FVOCI | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 135,145 | |
FVOCI | Government | ||
Credit risk | ||
Financial assets | 29,077 | |
FVOCI | Trade | ||
Credit risk | ||
Financial assets | 22,390 | |
FVOCI | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 8,245 | |
FVOCI | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 4,938 | |
FVOCI | Other | ||
Credit risk | ||
Financial assets | 54,445 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 1,523,472 | 1,317,164 |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 1,434,986 | 1,062,558 |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets held-for-trading | Government | ||
Credit risk | ||
Financial assets | 88,486 | 254,606 |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 356,368 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets available-for-sale | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 207,474 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | Financial assets available-for-sale | Government | ||
Credit risk | ||
Financial assets | 148,894 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | FVOCI | ||
Credit risk | ||
Financial assets | 164,222 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | FVOCI | Chilean Central Bank | ||
Credit risk | ||
Financial assets | 135,145 | |
Instruments issued by the Chilean Governments and Central Bank of Chile | FVOCI | Government | ||
Credit risk | ||
Financial assets | 29,077 | |
Other instruments issued in Chile | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 129,607 | 221,092 |
Other instruments issued in Chile | Financial assets held-for-trading | Financial Services | ||
Credit risk | ||
Financial assets | 129,607 | 221,092 |
Other instruments issued in Chile | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,168,913 | |
Other instruments issued in Chile | Financial assets available-for-sale | Financial Services | ||
Credit risk | ||
Financial assets | 1,106,003 | |
Other instruments issued in Chile | Financial assets available-for-sale | Trade | ||
Credit risk | ||
Financial assets | 31,833 | |
Other instruments issued in Chile | Financial assets available-for-sale | Manufacturing | ||
Credit risk | ||
Financial assets | 8,589 | |
Other instruments issued in Chile | Financial assets available-for-sale | Mining | ||
Credit risk | ||
Financial assets | 7,662 | |
Other instruments issued in Chile | Financial assets available-for-sale | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 2,883 | |
Other instruments issued in Chile | Financial assets available-for-sale | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 6,972 | |
Other instruments issued in Chile | Financial assets available-for-sale | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 4,971 | |
Other instruments issued in Chile | FVOCI | ||
Credit risk | ||
Financial assets | 779,613 | |
Other instruments issued in Chile | FVOCI | Financial Services | ||
Credit risk | ||
Financial assets | 689,595 | |
Other instruments issued in Chile | FVOCI | Trade | ||
Credit risk | ||
Financial assets | 22,390 | |
Other instruments issued in Chile | FVOCI | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 8,245 | |
Other instruments issued in Chile | FVOCI | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 4,938 | |
Other instruments issued in Chile | FVOCI | Other | ||
Credit risk | ||
Financial assets | 54,445 | |
Instruments issued by foreign institutions | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 4,446 | 322 |
Instruments issued by foreign institutions | Financial assets held-for-trading | Financial Services | ||
Credit risk | ||
Financial assets | 4,446 | 322 |
Instruments issued by foreign institutions | Financial assets available-for-sale | ||
Credit risk | ||
Financial assets | 1,034 | |
Instruments issued by foreign institutions | Financial assets available-for-sale | Financial Services | ||
Credit risk | ||
Financial assets | 1,034 | |
Instruments issued by foreign institutions | FVOCI | ||
Credit risk | ||
Financial assets | 109,356 | |
Instruments issued by foreign institutions | FVOCI | Financial Services | ||
Credit risk | ||
Financial assets | 109,356 | |
Mutual fund investments | Financial assets held-for-trading | ||
Credit risk | ||
Financial assets | 87,841 | |
Mutual fund investments | Financial assets held-for-trading | Financial Services | ||
Credit risk | ||
Financial assets | 87,841 | |
Derivative contracts for trading purposes | ||
Credit risk | ||
Financial assets | 1,478,533 | 1,220,092 |
Derivative contracts for trading purposes | Financial Services | ||
Credit risk | ||
Financial assets | 960,482 | 890,611 |
Derivative contracts for trading purposes | Trade | ||
Credit risk | ||
Financial assets | 59,550 | 53,903 |
Derivative contracts for trading purposes | Manufacturing | ||
Credit risk | ||
Financial assets | 20,697 | 15,909 |
Derivative contracts for trading purposes | Mining | ||
Credit risk | ||
Financial assets | 62 | 3,400 |
Derivative contracts for trading purposes | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 15,404 | 4,763 |
Derivative contracts for trading purposes | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 15,706 | 3,205 |
Derivative contracts for trading purposes | Fishing | ||
Credit risk | ||
Financial assets | 2,740 | 228 |
Derivative contracts for trading purposes | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 2,333 | 9,664 |
Derivative contracts for trading purposes | Construction | ||
Credit risk | ||
Financial assets | 1,194 | 41 |
Derivative contracts for trading purposes | Services | ||
Credit risk | ||
Financial assets | 74,582 | 238,368 |
Derivative contracts for trading purposes | Other | ||
Credit risk | ||
Financial assets | 325,783 | |
Derivative contracts for trading purposes | Forwards | ||
Credit risk | ||
Financial assets | 735,444 | 506,614 |
Derivative contracts for trading purposes | Forwards | Financial Services | ||
Credit risk | ||
Financial assets | 374,006 | 245,873 |
Derivative contracts for trading purposes | Forwards | Trade | ||
Credit risk | ||
Financial assets | 7,194 | 7,666 |
Derivative contracts for trading purposes | Forwards | Manufacturing | ||
Credit risk | ||
Financial assets | 13,328 | 9,860 |
Derivative contracts for trading purposes | Forwards | Mining | ||
Credit risk | ||
Financial assets | 40 | 2,561 |
Derivative contracts for trading purposes | Forwards | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 10,288 | 84 |
Derivative contracts for trading purposes | Forwards | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 4,211 | 54 |
Derivative contracts for trading purposes | Forwards | Fishing | ||
Credit risk | ||
Financial assets | 411 | 219 |
Derivative contracts for trading purposes | Forwards | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 98 | 2,368 |
Derivative contracts for trading purposes | Forwards | Construction | ||
Credit risk | ||
Financial assets | 455 | 29 |
Derivative contracts for trading purposes | Forwards | Services | ||
Credit risk | ||
Financial assets | 296 | 237,900 |
Derivative contracts for trading purposes | Forwards | Other | ||
Credit risk | ||
Financial assets | 325,117 | |
Derivative contracts for trading purposes | Swaps | ||
Credit risk | ||
Financial assets | 738,130 | 710,123 |
Derivative contracts for trading purposes | Swaps | Financial Services | ||
Credit risk | ||
Financial assets | 584,743 | 643,735 |
Derivative contracts for trading purposes | Swaps | Trade | ||
Credit risk | ||
Financial assets | 51,916 | 44,773 |
Derivative contracts for trading purposes | Swaps | Manufacturing | ||
Credit risk | ||
Financial assets | 7,348 | 5,563 |
Derivative contracts for trading purposes | Swaps | Mining | ||
Credit risk | ||
Financial assets | 22 | 839 |
Derivative contracts for trading purposes | Swaps | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 4,026 | 4,679 |
Derivative contracts for trading purposes | Swaps | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 10,006 | 2,862 |
Derivative contracts for trading purposes | Swaps | Fishing | ||
Credit risk | ||
Financial assets | 2,249 | 9 |
Derivative contracts for trading purposes | Swaps | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 2,235 | 7,244 |
Derivative contracts for trading purposes | Swaps | Construction | ||
Credit risk | ||
Financial assets | 680 | |
Derivative contracts for trading purposes | Swaps | Services | ||
Credit risk | ||
Financial assets | 74,250 | 419 |
Derivative contracts for trading purposes | Swaps | Other | ||
Credit risk | ||
Financial assets | 655 | |
Derivative contracts for trading purposes | Call Options | ||
Credit risk | ||
Financial assets | 4,839 | 514 |
Derivative contracts for trading purposes | Call Options | Financial Services | ||
Credit risk | ||
Financial assets | 1,669 | 269 |
Derivative contracts for trading purposes | Call Options | Trade | ||
Credit risk | ||
Financial assets | 389 | 32 |
Derivative contracts for trading purposes | Call Options | Manufacturing | ||
Credit risk | ||
Financial assets | 16 | 90 |
Derivative contracts for trading purposes | Call Options | Electricity, Gas and Water | ||
Credit risk | ||
Financial assets | 1,090 | |
Derivative contracts for trading purposes | Call Options | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 1,489 | 67 |
Derivative contracts for trading purposes | Call Options | Fishing | ||
Credit risk | ||
Financial assets | 80 | |
Derivative contracts for trading purposes | Call Options | Transportation and telecommunications | ||
Credit risk | ||
Financial assets | 52 | |
Derivative contracts for trading purposes | Call Options | Construction | ||
Credit risk | ||
Financial assets | 59 | 1 |
Derivative contracts for trading purposes | Call Options | Services | ||
Credit risk | ||
Financial assets | 36 | 3 |
Derivative contracts for trading purposes | Call Options | Other | ||
Credit risk | ||
Financial assets | 11 | |
Derivative contracts for trading purposes | Put Options | ||
Credit risk | ||
Financial assets | 120 | 2,841 |
Derivative contracts for trading purposes | Put Options | Financial Services | ||
Credit risk | ||
Financial assets | 64 | 734 |
Derivative contracts for trading purposes | Put Options | Trade | ||
Credit risk | ||
Financial assets | 51 | 1,432 |
Derivative contracts for trading purposes | Put Options | Manufacturing | ||
Credit risk | ||
Financial assets | 5 | 396 |
Derivative contracts for trading purposes | Put Options | Agriculture and livestock | ||
Credit risk | ||
Financial assets | 222 | |
Derivative contracts for trading purposes | Put Options | Construction | ||
Credit risk | ||
Financial assets | 11 | |
Derivative contracts for trading purposes | Put Options | Services | ||
Credit risk | ||
Financial assets | 46 | |
Hedge derivative contracts | ||
Credit risk | ||
Financial assets | 35,414 | 27,849 |
Hedge derivative contracts | Financial Services | ||
Credit risk | ||
Financial assets | 35,414 | 27,849 |
Hedge derivative contracts | Swaps | ||
Credit risk | ||
Financial assets | 35,414 | 27,849 |
Hedge derivative contracts | Swaps | Financial Services | ||
Credit risk | ||
Financial assets | $ 35,414 | $ 27,849 |
Risk Management - Collateral an
Risk Management - Collateral and Other Enhancements (Details) $ in Millions | Dec. 31, 2018CLP ($)item | Dec. 31, 2017CLP ($) |
Guarantee values | ||
Number of collateral assets | item | 225,191 | |
Fair value of loans covered by collateral | ||
Value of guarantees, classified as impaired | $ 85,721 | $ 102,014 |
Value of guarantees, classified as non-impaired | 295,634 | 358,967 |
Loans to customers | ||
Guarantee values | ||
Maximum exposure to credit risk | 27,926,632 | 25,451,513 |
Fair value of loans covered by collateral | ||
Mortgages | 13,391,818 | 12,018,604 |
Pledge | 107,400 | 102,620 |
Securities | 455,039 | 472,672 |
Warrants | 2,263 | 3,381 |
Others | 313,149 | 320,810 |
Net collateral | 14,269,669 | 12,918,087 |
Net exposure | 13,656,963 | 12,533,426 |
Corporate lending | ||
Guarantee values | ||
Maximum exposure to credit risk | 11,705,859 | 9,775,740 |
Fair value of loans covered by collateral | ||
Mortgages | 2,589,429 | 2,269,716 |
Pledge | 75,105 | 72,893 |
Securities | 423,556 | 438,595 |
Warrants | 2,263 | 3,381 |
Others | 221,919 | 243,961 |
Net collateral | 3,312,272 | 3,028,546 |
Net exposure | 8,393,587 | 6,747,194 |
Small business loans | ||
Guarantee values | ||
Maximum exposure to credit risk | 3,732,539 | 4,185,078 |
Fair value of loans covered by collateral | ||
Mortgages | 2,977,286 | 2,543,343 |
Pledge | 31,270 | 28,699 |
Securities | 28,974 | 32,034 |
Others | 71,140 | 58,255 |
Net collateral | 3,108,670 | 2,662,331 |
Net exposure | 623,869 | 1,522,747 |
Consumer loans | ||
Guarantee values | ||
Maximum exposure to credit risk | 4,436,161 | 4,013,459 |
Fair value of loans covered by collateral | ||
Mortgages | 332,030 | 283,091 |
Pledge | 967 | 938 |
Securities | 2,244 | 1,776 |
Others | 20,090 | 18,594 |
Net collateral | 355,331 | 304,399 |
Net exposure | 4,080,830 | 3,709,060 |
Mortgage loans | ||
Guarantee values | ||
Maximum exposure to credit risk | 8,052,073 | 7,477,236 |
Fair value of loans covered by collateral | ||
Mortgages | 7,493,073 | 6,922,454 |
Pledge | 58 | 90 |
Securities | 265 | 267 |
Net collateral | 7,493,396 | 6,922,811 |
Net exposure | $ 558,677 | $ 554,425 |
Risk Management - Financial ass
Risk Management - Financial assets past dues and aging analysis (Details) - CLP ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets that are either past due or impaired | ||
Financial Assets | $ 4,312,504 | $ 4,390,903 |
Loans | 27,100,290 | 24,635,490 |
Assets Received in Lieu of Payment | ||
Assets received in lieu of payment | 24,871 | 19,905 |
Up to 30 days | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 657,171 | 640,957 |
Up to 30 days | Subtotal past-due loans and advances to banks | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 273 | 6,880 |
Up to 30 days | Loans and advances to banks | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 273 | 6,880 |
Up to 30 days | Subtotal past-due loans to customers | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 656,898 | 634,077 |
Up to 30 days | Commercial loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 132,707 | 183,374 |
Up to 30 days | Import-export financing | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 13,892 | 19,628 |
Up to 30 days | Factoring transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 44,106 | 30,204 |
Up to 30 days | Commercial lease transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 92,057 | 52,365 |
Up to 30 days | Other loans and receivables | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 1,462 | 1,195 |
Up to 30 days | Mortgage loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 154,751 | 143,619 |
Up to 30 days | Consumer loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 217,923 | 203,692 |
Over 30 days and up to 60 days | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 227,509 | 201,939 |
Over 30 days and up to 60 days | Subtotal past-due loans to customers | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 227,509 | 201,939 |
Over 30 days and up to 60 days | Commercial loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 40,823 | 34,457 |
Over 30 days and up to 60 days | Import-export financing | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 2,194 | 2,403 |
Over 30 days and up to 60 days | Factoring transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 7,540 | 3,723 |
Over 30 days and up to 60 days | Commercial lease transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 6,166 | 12,407 |
Over 30 days and up to 60 days | Other loans and receivables | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 777 | 599 |
Over 30 days and up to 60 days | Mortgage loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 67,257 | 56,422 |
Over 30 days and up to 60 days | Consumer loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 102,752 | 91,928 |
Over 60 days and up to 90 days | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 98,006 | 122,172 |
Over 60 days and up to 90 days | Subtotal past-due loans to customers | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 98,006 | 122,172 |
Over 60 days and up to 90 days | Commercial loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 27,527 | 53,224 |
Over 60 days and up to 90 days | Import-export financing | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 618 | 647 |
Over 60 days and up to 90 days | Factoring transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 726 | 748 |
Over 60 days and up to 90 days | Commercial lease transactions | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 3,230 | 2,144 |
Over 60 days and up to 90 days | Other loans and receivables | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 470 | 724 |
Over 60 days and up to 90 days | Mortgage loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 24,653 | 26,365 |
Over 60 days and up to 90 days | Consumer loans | ||
Financial assets that are either past due or impaired | ||
Financial Assets | 40,782 | 38,320 |
Neither past due or impaired | ||
Financial assets that are either past due or impaired | ||
Loans | 26,376,542 | 23,928,184 |
Past due but not impaired | Up to 30 days | ||
Financial assets that are either past due or impaired | ||
Loans | 538,681 | 533,690 |
Past due but not impaired | Over 30 days and up to 60 days | ||
Financial assets that are either past due or impaired | ||
Loans | 145,130 | 134,316 |
Past due but not impaired | Over 60 days and up to 90 days | ||
Financial assets that are either past due or impaired | ||
Loans | 37,371 | 37,292 |
Past due but not impaired | Over 90 days | ||
Financial assets that are either past due or impaired | ||
Loans | $ 2,566 | $ 2,008 |
Risk Management - Renegotiated
Risk Management - Renegotiated Assets (Details) - CLP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Renegotiated Assets | ||
Total renegotiated financial assets | $ 569,671 | $ 576,064 |
Percentage of renegotiated portfolio of Banco de Chile on total loans | 2.04% | |
Redefault rate of renegotiated portfolio for retail segment (as a percent) | 34.91% | |
Average term of commercial credit renegotiated loans (in months) | 56 months | |
Amortised costs of financial assets modified during the period | $ 912,646 | |
Net modification loss | $ 298,761 | |
Maximum percentage of provisions on renegotiated loans | 65.00% | |
Period of default prior to renegotiation (in months) | 6 months | |
Maximum overdue period for provision of decrease in renegotiated payment behaviour | 30 days | |
Period for renegotiated payment behaviour | 7 months | |
Period used to test for impairment of loans | 90 days | |
Loans to customers | ||
Renegotiated Assets | ||
Total renegotiated financial assets | $ 569,671 | 576,064 |
Commercial loans | ||
Renegotiated Assets | ||
Total renegotiated financial assets | 192,646 | 191,314 |
Mortgage loans | ||
Renegotiated Assets | ||
Total renegotiated financial assets | 14,463 | 17,400 |
Consumer loans | ||
Renegotiated Assets | ||
Total renegotiated financial assets | 362,562 | $ 367,350 |
Facilities that have cured since modification and are now measured using 12mECLs (Stage 1) | ||
Renegotiated Assets | ||
Gross carrying amount, Post modification | 14,888 | |
Corresponding ECL, Post modification | 1,356 | |
Gross carrying amount, Pre-modification | 15,113 | |
Corresponding ECL, Pre-modification | 4,988 | |
Facilities that reverted to (Stage 2/3) lifetime ECLs having once cured | ||
Renegotiated Assets | ||
Gross carrying amount, Post modification | 1,515 | |
Corresponding ECL, Post modification | 540 | |
Gross carrying amount, Pre-modification | 1,512 | |
Corresponding ECL, Pre-modification | $ 206 |
Risk Management - Liquidity Ris
Risk Management - Liquidity Risk (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Annual increase in th regulatory limit of LCR | 0.1 | 0.1 | |
Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 34,003,780 | $ 32,731,457 | |
Current accounts and other demand deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 9,584,488 | 8,915,706 | |
Transactions in the course of payment | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 44,436 | 29,871 | |
Instrument sold under repurchase agreements and security lending | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 298,808 | 195,289 | |
Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 10,851,767 | 10,185,172 | |
Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 2,902,446 | 4,526,899 | |
Borrowings from financial institutions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,496,612 | 1,189,798 | |
Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 117,290 | 37,012 | |
Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 8,707,933 | 7,651,710 | |
Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 4,445,610 | 3,611,590 | |
Up to 1 month | |||
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 1.00% | 1.00% | |
Adjusted C46 FCCY as part of Tier-1 Capital | 1.00% | 1.00% | |
Up to 1 month | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 15,909,209 | 14,718,214 | |
Up to 1 month | Current accounts and other demand deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 9,584,488 | 8,915,706 | |
Up to 1 month | Transactions in the course of payment | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 44,436 | 29,871 | |
Up to 1 month | Instrument sold under repurchase agreements and security lending | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 292,231 | 194,539 | |
Up to 1 month | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 5,344,294 | 5,097,833 | |
Up to 1 month | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 351,496 | 172,323 | |
Up to 1 month | Borrowings from financial institutions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 97,661 | 260,272 | |
Up to 1 month | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 92,896 | 295 | |
Up to 1 month | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 101,707 | 47,375 | |
Up to 1 month | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 297,613 | 112,011 | |
3 months | |||
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 2.00% | 2.00% | |
Between 1 and 3 months | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 2,710,494 | 3,055,965 | |
Between 1 and 3 months | Instrument sold under repurchase agreements and security lending | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,440 | 750 | |
Between 1 and 3 months | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,981,221 | 2,509,694 | |
Between 1 and 3 months | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 190,643 | 136,729 | |
Between 1 and 3 months | Borrowings from financial institutions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 268,795 | 242,515 | |
Between 1 and 3 months | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 730 | 918 | |
Between 1 and 3 months | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 267,665 | 165,359 | |
Between 1 and 3 months | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 604,200 | 100,247 | |
Between 3 and 12 months | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 5,482,641 | 5,074,292 | |
Between 3 and 12 months | Instrument sold under repurchase agreements and security lending | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 5,137 | ||
Between 3 and 12 months | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 3,152,103 | 2,555,579 | |
Between 3 and 12 months | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 648,870 | 1,166,598 | |
Between 3 and 12 months | Borrowings from financial institutions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 946,950 | 613,159 | |
Between 3 and 12 months | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 4,857 | 10,921 | |
Between 3 and 12 months | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 724,724 | 728,035 | |
Between 3 and 12 months | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,028,798 | 1,141,610 | |
Due after 1 years but within 3 years | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 2,568,404 | 2,335,751 | |
Due after 1 years but within 3 years | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 373,398 | 21,536 | |
Due after 1 years but within 3 years | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 582,628 | 937,050 | |
Due after 1 years but within 3 years | Borrowings from financial institutions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 183,206 | 73,852 | |
Due after 1 years but within 3 years | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 18,406 | 24,038 | |
Due after 1 years but within 3 years | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,410,766 | 1,279,275 | |
Due after 1 years but within 3 years | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 712,286 | 816,847 | |
Due after 3 years but within 5 years | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 2,437,020 | 3,084,519 | |
Due after 3 years but within 5 years | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 619 | 311 | |
Due after 3 years but within 5 years | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 536,506 | 1,582,890 | |
Due after 3 years but within 5 years | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 366 | 686 | |
Due after 3 years but within 5 years | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 1,899,529 | 1,500,632 | |
Due after 3 years but within 5 years | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 593,431 | 325,199 | |
Due after 5 years | Liabilities excluding non-delivery derivative transactions [member] | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 4,896,012 | 4,462,716 | |
Due after 5 years | Savings accounts and time deposits | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 132 | 219 | |
Due after 5 years | Full delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 592,303 | 531,309 | |
Due after 5 years | Other financial obligations | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 35 | 154 | |
Due after 5 years | Debt instruments issued | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | 4,303,542 | 3,931,034 | |
Due after 5 years | Non - delivery derivative transactions | |||
Contractual maturity of the financial liabilities | |||
Financial liabilities | $ 1,209,282 | $ 1,115,676 | |
Maximum | |||
Liquidity Risk | |||
Period of time covered by internal funding liquidity report | 90 days | 90 days | |
Cross currency funding value | $ 4,377 | ||
Financial ratios | |||
Liquid Assets/Net Funding less than 1y | 95.00% | 95.00% | |
Liabilities greater than 1y/Assets greater than 1y | 77.00% | 77.00% | |
Deposits/Loans | 64.00% | 64.00% | |
Currency's risk used as a percentage of Tier-1 Capital | |||
LCR | 1.09 | 1.09 | |
Regulatory Limit of LCR | 1 | 1 | |
NSFR | 1.02 | 1.02 | |
Maximum | Up to 1 month | |||
Liquidity Risk | |||
Market Access Report value | $ 1,921 | $ 3,432 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.65% | 0.65% | |
Adjusted C46 FCCY as part of Tier-1 Capital | 0.37% | 0.37% | |
Maximum | 3 months | |||
Liquidity Risk | |||
Market Access Report value | $ 3,278 | $ 5,530 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.90% | 0.90% | |
Minimum | |||
Liquidity Risk | |||
Period of time covered by internal funding liquidity report | 30 days | 30 days | |
Cross currency funding value | $ 2,384 | ||
Financial ratios | |||
Liquid Assets/Net Funding less than 1y | 74.00% | 74.00% | |
Liabilities greater than 1y/Assets greater than 1y | 74.00% | 74.00% | |
Deposits/Loans | 59.00% | 59.00% | |
Currency's risk used as a percentage of Tier-1 Capital | |||
LCR | 0.78 | 0.78 | |
Regulatory Limit of LCR | 0.6 | 0.6 | |
NSFR | 0.95 | 0.95 | |
Minimum | Up to 1 month | |||
Liquidity Risk | |||
Market Access Report value | $ 476 | $ 1,893 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.29% | 0.29% | |
Adjusted C46 FCCY as part of Tier-1 Capital | 0.24% | 0.24% | |
Minimum | 3 months | |||
Liquidity Risk | |||
Market Access Report value | $ 1,691 | $ 3,653 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.55% | 0.55% | |
Average | |||
Liquidity Risk | |||
Cross currency funding value | $ 3,300 | ||
Financial ratios | |||
Liquid Assets/Net Funding less than 1y | 86.00% | 86.00% | |
Liabilities greater than 1y/Assets greater than 1y | 76.00% | 76.00% | |
Deposits/Loans | 61.00% | 61.00% | |
Currency's risk used as a percentage of Tier-1 Capital | |||
LCR | 0.91 | 0.91 | |
NSFR | 0.99 | 0.99 | |
Average | Up to 1 month | |||
Liquidity Risk | |||
Market Access Report value | $ 1,411 | $ 2,621 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.44% | 0.44% | |
Adjusted C46 FCCY as part of Tier-1 Capital | 0.31% | 0.31% | |
Average | 3 months | |||
Liquidity Risk | |||
Market Access Report value | $ 2,606 | $ 4,794 | |
Currency's risk used as a percentage of Tier-1 Capital | |||
Adjusted C46 All CCYs as part of Tier-1 Capital | 0.74% | 0.74% |
Risk Management - Price Risk (D
Risk Management - Price Risk (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | |
Price Risk | |||
Confidence level for calculation of value at risk | 99.00% | 99.00% | |
Observation period for calculation of value at risk | 1 year | 1 year | |
Adverse impact period for calculation of earnings at risk | 12 months | 12 months | |
Confidence level for calculation of earnings at risk | 97.70% | 97.70% | |
Fluctuation rate for liquid FX rates | 8.00% | 8.00% | |
Fluctuation rate for illiquid FX rates | 30.00% | 30.00% | |
Portion of tier 1 and tier 2 capital from risk weighted assets | 10.00% | 10.00% | |
Regulatory market risk measurement for trading portfolio as percentage of tier 1 and tier 2 capital limit | 100.00% | 100.00% | |
Risk limit for short-term and long-term portfolio (as a percent) | 25.00% | 25.00% | |
Total Assets | $ 37,507,941 | $ 35,170,799 | |
Total Liabilities | 32,315,688 | 29,602,665 | |
Up to 1 month | |||
Price Risk | |||
Total Assets | 4,615,607 | 6,513,502 | |
Total Liabilities | 15,194,511 | 15,076,530 | |
Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 2,684,606 | 2,829,211 | |
Total Liabilities | 2,662,936 | 3,143,236 | |
Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 6,579,800 | 6,962,831 | |
Total Liabilities | 5,071,785 | 3,710,248 | |
Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 8,749,175 | 6,209,428 | |
Total Liabilities | 2,173,298 | 1,715,760 | |
Due after 3 years but within 5 years | |||
Price Risk | |||
Total Assets | 4,210,281 | 3,356,147 | |
Total Liabilities | 2,122,715 | 1,425,571 | |
Due after 5 years | |||
Price Risk | |||
Total Assets | 10,668,472 | 9,299,680 | |
Total Liabilities | 5,090,443 | 4,531,320 | |
Current accounts and other demand deposits | |||
Price Risk | |||
Total Liabilities | 9,622,073 | 8,959,941 | |
Current accounts and other demand deposits | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 9,622,073 | 8,959,941 | |
Instrument sold under repurchase agreements and security lending | |||
Price Risk | |||
Total Liabilities | 6,963 | 10,267 | |
Instrument sold under repurchase agreements and security lending | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 6,963 | 10,267 | |
Savings accounts and time deposits | |||
Price Risk | |||
Total Liabilities | 10,851,767 | 10,189,893 | |
Savings accounts and time deposits | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 5,273,096 | 5,294,456 | |
Savings accounts and time deposits | Between 1 and 3 months | |||
Price Risk | |||
Total Liabilities | 1,981,221 | 2,317,792 | |
Savings accounts and time deposits | Between 3 and 12 months | |||
Price Risk | |||
Total Liabilities | 3,152,103 | 2,555,579 | |
Savings accounts and time deposits | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Liabilities | 373,398 | 21,536 | |
Savings accounts and time deposits | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Liabilities | 619 | 311 | |
Savings accounts and time deposits | Due after 5 years | |||
Price Risk | |||
Total Liabilities | 71,330 | 219 | |
Derivative instruments under hedge-accounting treatment | |||
Price Risk | |||
Total Liabilities | 1,513,050 | 1,419,543 | |
Derivative instruments under hedge-accounting treatment | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 115 | 352 | |
Derivative instruments under hedge-accounting treatment | Between 1 and 3 months | |||
Price Risk | |||
Total Liabilities | 144,525 | 3,968 | |
Derivative instruments under hedge-accounting treatment | Between 3 and 12 months | |||
Price Risk | |||
Total Liabilities | 243,151 | 286,519 | |
Derivative instruments under hedge-accounting treatment | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Liabilities | 187,522 | 452,960 | |
Derivative instruments under hedge-accounting treatment | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Liabilities | 222,201 | 75,237 | |
Derivative instruments under hedge-accounting treatment | Due after 5 years | |||
Price Risk | |||
Total Liabilities | 715,536 | 600,507 | |
Inter-banking loans | |||
Price Risk | |||
Total Liabilities | 1,496,612 | 1,189,797 | |
Inter-banking loans | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 97,661 | 506,703 | |
Inter-banking loans | Between 1 and 3 months | |||
Price Risk | |||
Total Liabilities | 268,795 | 553,663 | |
Inter-banking loans | Between 3 and 12 months | |||
Price Risk | |||
Total Liabilities | 946,950 | 129,431 | |
Inter-banking loans | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Liabilities | 183,206 | ||
Long-term debt | |||
Price Risk | |||
Total Liabilities | 8,707,933 | 7,649,781 | |
Long-term debt | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 101,707 | 158,085 | |
Long-term debt | Between 1 and 3 months | |||
Price Risk | |||
Total Liabilities | 267,665 | 266,895 | |
Long-term debt | Between 3 and 12 months | |||
Price Risk | |||
Total Liabilities | 724,724 | 727,798 | |
Long-term debt | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Liabilities | 1,410,766 | 1,217,226 | |
Long-term debt | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Liabilities | 1,899,529 | 1,349,337 | |
Long-term debt | Due after 5 years | |||
Price Risk | |||
Total Liabilities | 4,303,542 | 3,930,440 | |
Other liabilities | |||
Price Risk | |||
Total Liabilities | 117,290 | 183,443 | |
Other liabilities | Up to 1 month | |||
Price Risk | |||
Total Liabilities | 92,896 | 146,726 | |
Other liabilities | Between 1 and 3 months | |||
Price Risk | |||
Total Liabilities | 730 | 918 | |
Other liabilities | Between 3 and 12 months | |||
Price Risk | |||
Total Liabilities | 4,857 | 10,921 | |
Other liabilities | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Liabilities | 18,406 | 24,038 | |
Other liabilities | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Liabilities | 366 | 686 | |
Other liabilities | Due after 5 years | |||
Price Risk | |||
Total Liabilities | 35 | 154 | |
Maximum | |||
Price Risk | |||
Value-at-Risk used value | $ 1,401 | ||
Earnings-at-Risk used value | 33,197 | ||
Minimum | |||
Price Risk | |||
Value-at-Risk used value | 379 | ||
Earnings-at-Risk used value | 24,941 | ||
Average | |||
Price Risk | |||
Value-at-Risk used value | $ 783 | ||
Earnings-at-Risk used value | 26,738 | ||
Cash and due from banks | |||
Price Risk | |||
Total Assets | 844,173 | 1,028,014 | |
Cash and due from banks | Up to 1 month | |||
Price Risk | |||
Total Assets | 844,173 | 1,028,014 | |
Transactions in the course of collection | |||
Price Risk | |||
Total Assets | 151,701 | 223,360 | |
Transactions in the course of collection | Up to 1 month | |||
Price Risk | |||
Total Assets | 151,701 | 223,360 | |
Securities borrowed or purchased under agreements to resell | |||
Price Risk | |||
Total Assets | 3,161 | 19,992 | |
Securities borrowed or purchased under agreements to resell | Up to 1 month | |||
Price Risk | |||
Total Assets | 3,161 | 19,992 | |
Derivative instruments under hedge-accounting treatment | |||
Price Risk | |||
Total Assets | 1,516,670 | 1,329,112 | |
Derivative instruments under hedge-accounting treatment | Up to 1 month | |||
Price Risk | |||
Total Assets | 20 | 30,328 | |
Derivative instruments under hedge-accounting treatment | Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 140,631 | 146,775 | |
Derivative instruments under hedge-accounting treatment | Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 253,266 | 225,883 | |
Derivative instruments under hedge-accounting treatment | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 176,330 | 335,756 | |
Derivative instruments under hedge-accounting treatment | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Assets | 229,092 | 51,087 | |
Derivative instruments under hedge-accounting treatment | Due after 5 years | |||
Price Risk | |||
Total Assets | 717,331 | 539,283 | |
Inter-banking loans | |||
Price Risk | |||
Total Assets | 1,499,974 | 764,847 | |
Inter-banking loans | Up to 1 month | |||
Price Risk | |||
Total Assets | 1,262,749 | 533,101 | |
Inter-banking loans | Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 79,199 | 49,573 | |
Inter-banking loans | Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 133,689 | 150,253 | |
Inter-banking loans | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 24,337 | 31,920 | |
Loans to customers | |||
Price Risk | |||
Total Assets | 32,447,692 | 30,200,566 | |
Loans to customers | Up to 1 month | |||
Price Risk | |||
Total Assets | 2,305,334 | 4,669,573 | |
Loans to customers | Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 2,311,297 | 2,595,012 | |
Loans to customers | Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 5,784,455 | 5,636,496 | |
Loans to customers | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 8,402,372 | 5,619,230 | |
Loans to customers | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Assets | 3,923,096 | 3,089,002 | |
Loans to customers | Due after 5 years | |||
Price Risk | |||
Total Assets | 9,721,138 | 8,591,253 | |
Financial assets available-for-sale | |||
Price Risk | |||
Total Assets | 1,604,908 | ||
Financial assets available-for-sale | Up to 1 month | |||
Price Risk | |||
Total Assets | 9,134 | ||
Financial assets available-for-sale | Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 37,851 | ||
Financial assets available-for-sale | Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 950,199 | ||
Financial assets available-for-sale | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 222,522 | ||
Financial assets available-for-sale | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Assets | 216,058 | ||
Financial assets available-for-sale | Due after 5 years | |||
Price Risk | |||
Total Assets | $ 169,144 | ||
FVOCI | |||
Price Risk | |||
Total Assets | 1,044,570 | ||
FVOCI | Up to 1 month | |||
Price Risk | |||
Total Assets | 48,469 | ||
FVOCI | Between 1 and 3 months | |||
Price Risk | |||
Total Assets | 153,479 | ||
FVOCI | Between 3 and 12 months | |||
Price Risk | |||
Total Assets | 408,390 | ||
FVOCI | Due after 1 years but within 3 years | |||
Price Risk | |||
Total Assets | 146,136 | ||
FVOCI | Due after 3 years but within 5 years | |||
Price Risk | |||
Total Assets | 58,093 | ||
FVOCI | Due after 5 years | |||
Price Risk | |||
Total Assets | $ 230,003 |
Risk Management - Price Risk Se
Risk Management - Price Risk Sensitivity Analysis (Details) - 12 months ended Dec. 31, 2018 $ in Millions, $ in Millions | CLP ($) | USD ($) | CLP ($) |
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | $ (13,242) | ||
Most adverse stress scenario p&l impact trading book due to foreign exchange | 13 | ||
Most adverse stress scenario p&l impact trading book due to options | (13) | ||
Total amount of most adverse stress scenario p&l impact trading book | (13,242) | ||
Maximum potential loss impact on the trading book | $ 19 | 13,000 | |
12-Months NRFF IMPACT ACCRUAL BOOK | |||
Impact due to inter-banking yield curve (swap yield) shock | $ (122,334) | ||
Impact due to spreads shocks | (7,320) | ||
Higher / (Lower) NRFF | $ (129,654) | ||
Interest rate USD, EUR, JPY, etc. Domestic/offshore | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | 145 | ||
Domestic/offshore interest rate spread USD, EUR, JPY | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | (12,762) | ||
CLP | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | (683) | ||
CLP | Derivatives | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | 54 | ||
CLP | Bonds / Debt instruments | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | (737) | ||
CLF | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | 58 | ||
CLF | Derivatives | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | 84 | ||
CLF | Bonds / Debt instruments | |||
Most Adverse Stress Scenario p&L Impact Trading Book | |||
Most adverse stress scenario p&l impact trading book due to interest rate/swap yield | $ (26) | ||
Due within 1 year | CLP | Derivatives | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 4 | ||
Due within 1 year | CLP | Bonds / Debt instruments | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 20 | ||
Due within 1 year | CLF | Derivatives | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | (26) | ||
Due within 1 year | CLF | Bonds / Debt instruments | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | (10) | ||
Due within 1 year | USD | Interest rate USD, EUR, JPY, etc. Domestic/offshore | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 7 | ||
Due within 1 year | USD | Domestic/offshore interest rate spread USD, EUR, JPY | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 301 | ||
Over 1 year | CLP | Derivatives | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 7 | ||
Over 1 year | CLP | Bonds / Debt instruments | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 19 | ||
Over 1 year | CLF | Derivatives | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | (6) | ||
Over 1 year | CLF | Bonds / Debt instruments | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | (18) | ||
Over 1 year | USD | Interest rate USD, EUR, JPY, etc. Domestic/offshore | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 5 | ||
Over 1 year | USD | Domestic/offshore interest rate spread USD, EUR, JPY | |||
Adverse scenario market factors fluctuations | |||
Reasonably possible increase (decrease) in risk assumption (bps) | 34 |
Risk Management - Capital Requi
Risk Management - Capital Requirements and Capital Management (Details) $ in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CLP ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) |
Capital Requirements and Capital Management | |||||
Cash and due from banks | $ 1,268,860 | $ 880,081 | $ 1,057,393 | ||
Transactions in the course of collection | 416,946 | 289,194 | 255,968 | ||
Financial assets held-for-trading | 2,516,387 | 1,745,366 | 1,538,578 | ||
Cash collateral on securities borrowed and reverse repurchase agreements | 140,267 | 97,289 | 91,641 | ||
Derivative instruments | 2,182,738 | 1,513,947 | 1,247,941 | ||
Loans and advances to banks | 2,154,533 | 1,494,384 | 760,021 | ||
Loans to customers, net | 39,419,340 | 27,341,254 | 24,955,692 | ||
Financial assets available-for-sale | 1,526,315 | ||||
Financial assets at fair value through other comprehensive income | 1,518,441 | 1,053,191 | |||
Investments in other companies | 60,917 | 42,252 | 35,771 | $ 30,314 | $ 25,849 |
Intangible assets | 123,228 | 85,471 | 72,455 | 65,036 | |
Property and equipment | 311,234 | 215,872 | 216,259 | ||
Investment properties | 20,095 | 13,938 | 14,306 | 14,674 | $ 15,042 |
Current tax assets | 976 | 677 | 23,032 | ||
Deferred tax assets | 278,028 | 192,840 | 161,265 | ||
Other assets | 939,577 | 651,691 | 604,800 | ||
TOTAL ASSETS | $ 51,351,567 | 35,617,447 | 32,561,437 | $ 31,357,304 | |
Basic capital | 3,304,152 | 3,105,714 | |||
Effective equity | 4,129,999 | 3,934,727 | |||
Total consolidated assets | 39,989,595 | 37,017,702 | |||
Total consolidated assets weighted by credit risk | $ 29,693,950 | $ 27,068,339 | |||
Basic capital / consolidated assets (as a percent) | 8.26% | 8.26% | 8.39% | ||
Effective equity / consolidated assets weighted by risk (as a percent) | 13.91 | 13.91 | 14.54 | ||
Credit risk | |||||
Capital Requirements and Capital Management | |||||
Cash and due from banks | $ 880,081 | $ 1,057,393 | |||
Transactions in the course of collection | 289,194 | 255,968 | |||
Financial assets held-for-trading | 1,745,366 | 1,538,578 | |||
Cash collateral on securities borrowed and reverse repurchase agreements | 97,289 | 91,641 | |||
Derivative instruments | 1,310,262 | 1,469,083 | |||
Loans and advances to banks | 1,494,384 | 760,021 | |||
Loans to customers, net | 27,341,254 | 24,955,692 | |||
Financial assets available-for-sale | 1,526,315 | ||||
Financial assets at fair value through other comprehensive income | 1,053,191 | ||||
Investments in other companies | 42,252 | 35,771 | |||
Intangible assets | 85,471 | 72,455 | |||
Property and equipment | 215,872 | 216,259 | |||
Investment properties | 13,938 | 14,306 | |||
Current tax assets | 677 | 23,032 | |||
Deferred tax assets | 192,840 | 161,265 | |||
Other assets | 651,691 | 604,800 | |||
TOTAL ASSETS | 35,413,762 | 32,782,579 | |||
Contingent loans | 4,266,821 | 3,972,260 | |||
Total risk-weighted assets | 39,680,583 | 36,754,839 | |||
Risk weighted assets according to SBIF instructions | |||||
Capital Requirements and Capital Management | |||||
Cash and due from banks | 13,084 | 5,699 | |||
Transactions in the course of collection | 186,536 | 95,210 | |||
Financial assets held-for-trading | 134,412 | 148,641 | |||
Cash collateral on securities borrowed and reverse repurchase agreements | 97,289 | 91,641 | |||
Derivative instruments | 916,798 | 927,837 | |||
Loans and advances to banks | 313,524 | 312,806 | |||
Loans to customers, net | 24,102,808 | 21,908,281 | |||
Financial assets available-for-sale | 325,209 | ||||
Financial assets at fair value through other comprehensive income | 356,568 | ||||
Investments in other companies | 44,561 | 38,041 | |||
Intangible assets | 52,061 | 39,045 | |||
Property and equipment | 215,872 | 216,259 | |||
Current tax assets | 68 | 2,303 | |||
Deferred tax assets | 27,792 | 26,740 | |||
Other assets | 673,380 | 547,974 | |||
TOTAL ASSETS | 27,134,753 | 24,685,686 | |||
Contingent loans | 2,559,197 | 2,382,653 | |||
Total risk-weighted assets | $ 29,693,950 | $ 27,068,339 |
New Accounting Pronouncements -
New Accounting Pronouncements - IFRS 9 Financial Instruments, Transition impact (Details) $ in Millions | Jan. 01, 2019CLP ($) |
New Accounting Pronouncements | |
Right-of-use-asset | $ 144,529 |
Lease liability | $ 144,529 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 28, 2019$ / shares | Mar. 14, 2019 | Jan. 28, 2019CLF ( ) | Jan. 24, 2019$ / shares | Jan. 12, 2019 |
Declaration of dividends | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Proposed dividend per share | $ 352,723,589,646 | ||||
Proposed dividend (as a percent) | 70.00% | ||||
Capitalization of net distributable income (as a percent) | 30.00% | ||||
Provision for minimum dividend, percentage of net distributable profit | 60.00% | ||||
Dividend declared and approved, charged to net distributable income | $ 352,723,589,646 | ||||
Regulatory capital | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Additional basic capital to risk weighted assets (as a percent) | 2.50% | ||||
Additional basic capital period (in years) | 4 years | ||||
Incremental additional basic capital to risk weighted assets each year (as a percent) | 0.625% | ||||
Additional basic capital countercyclical period (in years) | 18 months | ||||
Additional basic capital to total assets (as a percent) | 0.50% | ||||
Percentage of credit limit (as a percent) | 30.00% | ||||
strategic alliance | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Term of strategic alliance with the insurance companies | 15 years | ||||
Payment for insurance contracts | | 5,367,057 |