| Business Segment |
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 (SMEs) 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: | This segment includes the associated revenues to the management of the investment portfolio and the business
of financial transactions and currency trading. |
Transactions with 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, among others.
| Subsidiaries: | Corresponds to the businesses generated by the companies controlled by the Bank, which carry out activities
complementary to the bank business. 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. |
| ● | Operadora de Tarjetas B-Pago S.A. |
The financial information used to measure
the performance of the Bank’s business segments is not comparable with similar information from other financial institutions because
each institution relies on its own definitions. The accounting policies applied to the segments is the same as those described in the
summary of accounting principles. The Bank obtains the majority of the results from: interest, indexation and commissions and financial
operations and changes, discounting provisions for credit risk and operating expenses. Management relies mainly on these concepts to evaluate
the performance of the segments and make decisions about the goals and allocations of resources of each unit. Although the results of
the segments reconcile with those of the Bank at the total level, this is not necessarily the case in terms of the different concepts,
given that management is measured and controlled individually and not on a consolidated basis, applying the following criteria:
| ● | The net interest margin of loans and deposits
is obtained aggregating the net financial margins of each individual operation of credit and uptake made by the Bank. For these purposes,
the volume of each operation and its contribution margin are considered, which in turn corresponds to the difference between the effective
rate of the customer and the internal transfer price established according to the term and currency of each operation. Additionally, the
net margin includes the result of interest and indexation from the accounting hedges. |
| ● | Provisions for credit risk are determined at
the customer and counterparty level based on the characteristics of each of their operations. |
| ● | The capital and financial impacts on outcome
have been assigned to each segment based on the risk-weighted assets. |
| ● | Operational expenses are recognized at the level
of the different functional areas of the Bank. Then, for the business segment purposes, the allocation of expenses from functional areas
is done using different allocation criteria, at the level of the different concepts and expense items. |
Taxes are managed at the consolidated
level and are not allocated to business segments.
For the years ended December 31, 2024
and 2023 there was no income from transactions with a customer or counterparty that accounted for 10% or more of the Bank’s total
revenues. The following table presents the income, and assets
and liabilities by segment for the year ended December 31, 2024 for each of the segments defined above:
| | |
As of December 31, 2024 | |
| | |
Retail | | |
Wholesale | | |
Treasury | | |
Subsidiaries | | |
Subtotal | | |
Reclassifications
and
adjustments
to conform
IFRS | | |
Note | |
Total | |
| | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
| |
MCh$ | |
| Net interest income and UF indexation | |
| 1,503,824 | | |
| 744,346 | | |
| (105,115 | ) | |
| (3,759 | ) | |
| 2,139,296 | | |
| 23,459 | | |
| |
| 2,162,755 | |
| Net commissions income | |
| 323,869 | | |
| 90,259 | | |
| 4,376 | | |
| 190,192 | | |
| 608,696 | | |
| (52,388 | ) | |
| |
| 556,308 | |
| Net financial income | |
| 15,885 | | |
| 47,410 | | |
| 160,589 | | |
| 52,858 | | |
| 276,742 | | |
| 3,738 | | |
| |
| 280,480 | |
| Other income | |
| 44,156 | | |
| 7,822 | | |
| — | | |
| 3,408 | | |
| 55,386 | | |
| (4,067 | ) | |
| |
| 51,319 | |
| Income attributable to investments in other companies | |
| 9,291 | | |
| 6,385 | | |
| 980 | | |
| 396 | | |
| 17,052 | | |
| (397 | ) | |
| |
| 16,655 | |
| Operating income, before expected credit losses | |
| 1,897,025 | | |
| 896,222 | | |
| 60,830 | | |
| 243,095 | | |
| 3,097,172 | | |
| (29,655 | ) | |
(1) | |
| 3,067,517 | |
| Expenses for expected credit losses | |
| (364,712 | ) | |
| (26,033 | ) | |
| (1,009 | ) | |
| — | | |
| (391,754 | ) | |
| 39,048 | | |
(2) | |
| (352,706 | ) |
| Total operating income, after expected credit losses | |
| 1,532,313 | | |
| 870,189 | | |
| 59,821 | | |
| 243,095 | | |
| 2,705,418 | | |
| 9,393 | | |
| |
| 2,714,811 | |
| Expenses from salaries and employee benefits | |
| (382,339 | ) | |
| (110,857 | ) | |
| (2,974 | ) | |
| (86,397 | ) | |
| (582,567 | ) | |
| 20 | | |
| |
| (582,547 | ) |
| Administrative expenses | |
| (337,630 | ) | |
| (75,140 | ) | |
| (1,676 | ) | |
| (48,178 | ) | |
| (462,624 | ) | |
| 45,928 | | |
| |
| (416,696 | ) |
| Depreciation and amortization | |
| (78,908 | ) | |
| (8,002 | ) | |
| (302 | ) | |
| (7,389 | ) | |
| (94,601 | ) | |
| — | | |
| |
| (94,601 | ) |
| Impairment of non-financial assets | |
| (1,147 | ) | |
| — | | |
| — | | |
| (1,704 | ) | |
| (2,851 | ) | |
| — | | |
| |
| (2,851 | ) |
| Other operating expenses | |
| (25,583 | ) | |
| (9,973 | ) | |
| (2 | ) | |
| (1,420 | ) | |
| (36,978 | ) | |
| 939 | | |
| |
| (36,039 | ) |
| Total operating expenses | |
| (825,607 | ) | |
| (203,972 | ) | |
| (4,954 | ) | |
| (145,088 | ) | |
| (1,179,621 | ) | |
| 46,887 | | |
(3) | |
| (1,132,734 | ) |
| Net operating income | |
| 706,706 | | |
| 666,217 | | |
| 54,867 | | |
| 98,007 | | |
| 1,525,797 | | |
| 56,280 | | |
| |
| 1,582,077 | |
| Income taxes | |
| | | |
| | | |
| | | |
| | | |
| (318,405 | ) | |
| (15,196 | ) | |
(4) | |
| (333,601 | ) |
| Net income after taxes | |
| | | |
| | | |
| | | |
| | | |
| 1,207,392 | | |
| 41,084 | | |
| |
| 1,248,476 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Assets | |
| 24,831,698 | | |
| 13,259,610 | | |
| 12,590,222 | | |
| 924,392 | | |
| 51,605,922 | | |
| (32,470 | ) | |
| |
| 51,573,452 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 716,698 | | |
| (234,608 | ) | |
| |
| 482,090 | |
| Total assets | |
| | | |
| | | |
| | | |
| | | |
| 52,322,620 | | |
| (267,078 | ) | |
(5) | |
| 52,055,542 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Liabilities | |
| 18,014,282 | | |
| 10,790,972 | | |
| 17,199,083 | | |
| 694,984 | | |
| 46,699,321 | | |
| (1,148,973 | ) | |
| |
| 45,550,348 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 298 | | |
| — | | |
| |
| 298 | |
| Total liabilities | |
| | | |
| | | |
| | | |
| | | |
| 46,699,619 | | |
| (1,148,973 | ) | |
(6) | |
| 45,550,646 | |
Reclassifications and
adjustments to conform IFRS
| (1) | The total effect due to the consolidation adjustments to conform the total operating revenue is MCh$(46,887).
In addition, the total effect of IFRS adjustments is MCh$17,232, which mainly stems from the recognition of interest income on accrual
basis. |
| (2) | The total effect relates to IFRS adjustments of MCh$39,048, which mainly stems from differences in the
calculation model of allowances for ECL. |
| (3) | The total effect due to the consolidation adjustments to conform total operating expenses is MCh$46,887. |
| (4) | The total effect relates to IFRS adjustments of MCh$(15,196), which stems from deferred taxes. |
| (5) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in assets is MCh$(227,179). In addition, the total effect of IFRS adjustments in assets is MCh$(39,899), which mainly stems from differences
in the calculation model for ECL and deferred taxes effects. |
| (6) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in liabilities is MCh$(227,179). In addition, the total effect of IFRS adjustments in liabilities is MCh$(921,794), which mainly stems
from provision for minimum dividends and differences in the calculation model of allowances for ECL. |
The following table presents the income, and assets
and liabilities by segment for the year ended December 31, 2023 for each of the segments defined above (*):
| | |
As of December 31, 2023 | |
| | |
Retail | | |
Wholesale | | |
Treasury | | |
Subsidiaries | | |
Subtotal | | |
Reclassifications
and adjustments
to conform
IFRS | | |
Note | |
Total | |
| | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
| |
MCh$ | |
| Net interest income and UF indexation | |
| 1,427,085 | | |
| 790,083 | | |
| (316,290 | ) | |
| (11,162 | ) | |
| 1,889,716 | | |
| 31,076 | | |
| |
| 1,920,792 | |
| Net commissions income | |
| 321,736 | | |
| 81,680 | | |
| 1,725 | | |
| 173,416 | | |
| 578,557 | | |
| (43,873 | ) | |
| |
| 534,684 | |
| Net financial income | |
| 10,771 | | |
| 54,902 | | |
| 336,515 | | |
| 66,521 | | |
| 468,709 | | |
| 844 | | |
| |
| 469,553 | |
| Other income | |
| 54,623 | | |
| 24,913 | | |
| — | | |
| 3,400 | | |
| 82,936 | | |
| (7,190 | ) | |
| |
| 75,746 | |
| Income attributable to investments in other companies | |
| 9,624 | | |
| 3,366 | | |
| 342 | | |
| 1,100 | | |
| 14,432 | | |
| (1,023 | ) | |
| |
| 13,409 | |
| Operating income, before expected credit losses | |
| 1,823,839 | | |
| 954,944 | | |
| 22,292 | | |
| 233,275 | | |
| 3,034,350 | | |
| (20,166 | ) | |
(1) | |
| 3,014,184 | |
| Expenses for expected credit losses | |
| (373,169 | ) | |
| 9,164 | | |
| 2,754 | | |
| — | | |
| (361,251 | ) | |
| 159,307 | | |
(2) | |
| (201,944 | ) |
| Total operating income, after expected credit losses | |
| 1,450,670 | | |
| 964,108 | | |
| 25,046 | | |
| 233,275 | | |
| 2,673,099 | | |
| 139,141 | | |
| |
| 2,812,240 | |
| Expenses from salaries and employee benefits | |
| (380,149 | ) | |
| (110,822 | ) | |
| (2,972 | ) | |
| (88,761 | ) | |
| (582,704 | ) | |
| 20 | | |
| |
| (582,684 | ) |
| Administrative expenses | |
| (326,380 | ) | |
| (74,445 | ) | |
| (1,866 | ) | |
| (39,052 | ) | |
| (441,743 | ) | |
| 38,488 | | |
| |
| (403,255 | ) |
| Depreciation and amortization | |
| (76,893 | ) | |
| (8,502 | ) | |
| (289 | ) | |
| (6,624 | ) | |
| (92,308 | ) | |
| — | | |
| |
| (92,308 | ) |
| Impairment of non-financial assets | |
| (1,773 | ) | |
| (5 | ) | |
| — | | |
| 16 | | |
| (1,762 | ) | |
| — | | |
| |
| (1,762 | ) |
| Other operating expenses | |
| (28,439 | ) | |
| (6,841 | ) | |
| (3 | ) | |
| (1,777 | ) | |
| (37,060 | ) | |
| 970 | | |
| |
| (36,090 | ) |
| Total operating expenses | |
| (813,634 | ) | |
| (200,615 | ) | |
| (5,130 | ) | |
| (136,198 | ) | |
| (1,155,577 | ) | |
| 39,478 | | |
(3) | |
| (1,116,099 | ) |
| Net operating income | |
| 637,036 | | |
| 763,493 | | |
| 19,916 | | |
| 97,077 | | |
| 1,517,522 | | |
| 178,619 | | |
| |
| 1,696,141 | |
| Income taxes | |
| | | |
| | | |
| | | |
| | | |
| (273,887 | ) | |
| (48,227 | ) | |
(4) | |
| (322,114 | ) |
| Net income after taxes | |
| | | |
| | | |
| | | |
| | | |
| 1,243,635 | | |
| 130,392 | | |
| |
| 1,374,027 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Assets | |
| 23,583,402 | | |
| 13,247,584 | | |
| 17,530,710 | | |
| 986,697 | | |
| 55,348,393 | | |
| (91,952 | ) | |
| |
| 55,256,441 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 681,012 | | |
| (219,412 | ) | |
| |
| 461,600 | |
| Total assets | |
| | | |
| | | |
| | | |
| | | |
| 56,029,405 | | |
| (311,364 | ) | |
(5) | |
| 55,718,041 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Liabilities | |
| 19,123,031 | | |
| 10,671,254 | | |
| 20,219,857 | | |
| 777,170 | | |
| 50,791,312 | | |
| (1,156,024 | ) | |
| |
| 49,635,288 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 808 | | |
| — | | |
| |
| 808 | |
| Total liabilities | |
| | | |
| | | |
| | | |
| | | |
| 50,792,120 | | |
| (1,156,024 | ) | |
(6) | |
| 49,636,096 | |
Reclassifications and
adjustments to conform IFRS
| (1) | The total effect due to the consolidation adjustments to conform the total operating revenue is MCh$(39,478).
In addition, the total effect of IFRS adjustments is MCh$19,312, which mainly stems from the recognition of interest income on accrual
basis. |
| (2) | The total effect relates to IFRS adjustments of MCh$159,307, which mainly stems from differences in the
calculation model of allowances for ECL. |
| (3) | The total effect due to the consolidation adjustments to conform total operating expenses is MCh$39,478. |
| (4) | The total effect relates to IFRS adjustments of MCh$(48,227), which stems from deferred taxes. |
| (5) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in assets is MCh$(236,853). In addition, the total effect of IFRS adjustments in assets is MCh$(74,511), which mainly stems from differences
in the calculation model for ECL and deferred taxes effects. |
| (6) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in liabilities is MCh$(236,853). In addition, the total effect of IFRS adjustments in liabilities is MCh$(919,171), which mainly stems
from provision for minimum dividends and differences in the calculation model of allowances for ECL. |
The following table presents the income, and assets and liabilities
by segment for the year ended December 31, 2022 for each of the segments defined above (*):
| | |
As of December 31, 2022 | |
| | |
Retail | | |
Wholesale | | |
Treasury | | |
Subsidiaries | | |
Subtotal | | |
Reclassifications
and adjustments
to conform
IFRS | | |
Note | |
Total | |
| | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
| |
MCh$ | |
| Net interest income and UF indexation | |
| 1,446,658 | | |
| 863,104 | | |
| (60,758 | ) | |
| (13,592 | ) | |
| 2,235,412 | | |
| 30,717 | | |
| |
| 2,266,129 | |
| Net commissions income | |
| 301,671 | | |
| 73,105 | | |
| (2,280 | ) | |
| 174,423 | | |
| 546,919 | | |
| (24,680 | ) | |
| |
| 522,239 | |
| Net financial income | |
| 8,248 | | |
| 57,389 | | |
| 172,949 | | |
| 64,933 | | |
| 303,519 | | |
| 3,305 | | |
| |
| 306,824 | |
| Other income | |
| 22,422 | | |
| 8,649 | | |
| — | | |
| 3,530 | | |
| 34,601 | | |
| (3,345 | ) | |
| |
| 31,256 | |
| Income attributable to investments in other companies | |
| 9,471 | | |
| 3,180 | | |
| 279 | | |
| 650 | | |
| 13,580 | | |
| (549 | ) | |
| |
| 13,031 | |
| Operating income, before expected credit losses | |
| 1,788,470 | | |
| 1,005,427 | | |
| 110,190 | | |
| 229,944 | | |
| 3,134,031 | | |
| 5,448 | | |
(1) | |
| 3,139,479 | |
| Expenses for expected credit losses | |
| (323,364 | ) | |
| (103,745 | ) | |
| (8,009 | ) | |
| — | | |
| (435,118 | ) | |
| 22,988 | | |
(2) | |
| (412,130 | ) |
| Total operating income, after expected credit losses | |
| 1,465,106 | | |
| 901,682 | | |
| 102,181 | | |
| 229,944 | | |
| 2,698,913 | | |
| 28,436 | | |
| |
| 2,727,349 | |
| Expenses from salaries and employee benefits | |
| (339,850 | ) | |
| (102,395 | ) | |
| (2,644 | ) | |
| (83,356 | ) | |
| (528,245 | ) | |
| 19 | | |
| |
| (528,226 | ) |
| Administrative expenses | |
| (267,664 | ) | |
| (66,547 | ) | |
| (1,771 | ) | |
| (34,651 | ) | |
| (370,633 | ) | |
| 20,266 | | |
| |
| (350,367 | ) |
| Depreciation and amortization | |
| (69,100 | ) | |
| (8,540 | ) | |
| (424 | ) | |
| (6,141 | ) | |
| (84,205 | ) | |
| — | | |
| |
| (84,205 | ) |
| Impairment of non-financial assets | |
| (9 | ) | |
| (122 | ) | |
| — | | |
| 54 | | |
| (77 | ) | |
| — | | |
| |
| (77 | ) |
| Other operating expenses | |
| (22,180 | ) | |
| (6,880 | ) | |
| — | | |
| (1,501 | ) | |
| (30,561 | ) | |
| 1,097 | | |
| |
| (29,464 | ) |
| Total operating expenses | |
| (698,803 | ) | |
| (184,484 | ) | |
| (4,839 | ) | |
| (125,595 | ) | |
| (1,013,721 | ) | |
| 21,382 | | |
(3) | |
| (992,339 | ) |
| Net operating income | |
| 766,303 | | |
| 717,198 | | |
| 97,342 | | |
| 104,349 | | |
| 1,685,192 | | |
| 49,818 | | |
| |
| 1,735,010 | |
| Income taxes | |
| | | |
| | | |
| | | |
| | | |
| (275,757 | ) | |
| (13,452 | ) | |
(4) | |
| (289,209 | ) |
| Net income after taxes | |
| | | |
| | | |
| | | |
| | | |
| 1,409,435 | | |
| 36,366 | | |
| |
| 1,445,801 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Assets | |
| 21,676,597 | | |
| 13,576,675 | | |
| 18,587,455 | | |
| 925,064 | | |
| 54,765,791 | | |
| (212,524 | ) | |
| |
| 54,553,267 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 726,910 | | |
| (171,323 | ) | |
| |
| 555,587 | |
| Total assets | |
| | | |
| | | |
| | | |
| | | |
| 55,492,701 | | |
| (383,847 | ) | |
(5) | |
| 55,108,854 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | |
| Liabilities | |
| 17,586,680 | | |
| 10,151,503 | | |
| 22,167,730 | | |
| 727,529 | | |
| 50,633,442 | | |
| (956,957 | ) | |
| |
| 49,676,485 | |
| Current and deferred taxes | |
| | | |
| | | |
| | | |
| | | |
| 932 | | |
| — | | |
| |
| 932 | |
| Total liabilities | |
| | | |
| | | |
| | | |
| | | |
| 50,634,374 | | |
| (956,957 | ) | |
(6) | |
| 49,677,417 | |
Reclassifications and
adjustments to conform IFRS
| (1) | The total effect due to the consolidation adjustments to conform the total operating revenue is MCh$(21,382).
In addition, the total effect of IFRS adjustments is MCh$26,830, which mainly stems from the recognition of interest income on accrual
basis. |
| (2) | The total effect relates to IFRS adjustments of MCh$22,988, which mainly stems from differences in the
calculation model of allowances for ECL. |
| (3) | The total effect due to the consolidation adjustments to conform total operating expenses is MCh$21,382. |
| (4) | The total effect relates to IFRS adjustments of MCh$(13,452), which stems from deferred taxes. |
| (5) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in assets is MCh$(237,339). In addition, the total effect of IFRS adjustments in assets is MCh$(146,508), which mainly stems from differences
in the calculation model for ECL and deferred taxes effects. |
| (6) | The total effect due to the consolidation adjustments to conform the consolidated financial position data
in liabilities is MCh$(237,339). In addition, the total effect of IFRS adjustments in liabilities is MCh$(719,618), which mainly stems
from provision for minimum dividends and differences in the calculation model of allowances for ECL. |
|