v3.25.1
Derivative Financial Instruments for Hedging Purposes
 12 Months Ended
Dec. 31, 2024
Derivative Financial Instruments for Hedging Purposes [Abstract]  
Derivative Financial Instruments for hedging purposes
10.Derivative Financial Instruments for hedging purposes:

 

(a.1)As of December 31, 2024 and 2023, the Bank has the following portfolio of financial derivative instruments for accounting hedging purposes:

 

   Notional amount of contract with final expiration date in     
   Demand   Up to 1 month   Over 1 month and up to 3 months   Over 3 months
and up to
12 months		   Over 1 year
and up to
3 years		   Over 3 year
and up to
5 years		   Over  5 years   Total  

Fair value

Assets

 
   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
                                                                         
Derivatives held for fair value hedges   
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    —    — 
                                                                                           
Cash flow hedge derivatives                                                                                          
Interest rate swap and cross currency swap   
—
    
—
    
—
    
—
    
—
    
—
    131,987    141,416    274,935    36,553    122,041    232,293    306,460    222,615    835,423    632,877    73,959    49,065 
Total   
—
    
—
    
—
    
—
    
—
    
—
    131,987    141,416    274,935    36,553    122,041    232,293    306,460    222,615    835,423    632,877    73,959    49,065 

 

(a.2)As of December 31, 2024 and 2023, the Bank has the following debt portfolio of financial derivative instruments for accounting hedging purposes:

 

   Notional amount of contract with final expiration date in     
   Demand   Up to 1 month   Over 1 month
and up to
3 months		   Over 3 months
and up to
12 months		   Over 1 year
and up to
3 years		   Over 3 year
and up to
5 years		   Over  5 years   Total   Fair value
Liabilities		 
   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
                                                                         
Derivatives held for fair value hedges   
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
    
—
 
                                                                                           
Cash flow hedge derivatives                                                                                          
Interest rate swap and cross currency swap   
—
    
—
    
—
    
—
    
—
    
—
    134,806    
—
    34,060    218,840    132,265    180,325    875,618    983,782    1,176,749    1,382,947    141,040    160,602 
Total   
—
    
—
    
—
    
—
    
—
    
—
    134,806    
—
    34,060    218,840    132,265    180,325    875,618    983,782    1,176,749    1,382,947    141,040    160,602 
(b)Fair Value Hedges:

 

As of December 31, 2024 and 2023, no fair value hedges are held.

 

(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 foreign banks obligations and bonds issued abroad in US Dollars, Hong Kong dollars, Swiss Franc, Japanese Yens, Peruvian Sol, Australian Dollars, Euros, Norwegian kroner and Mexican peso. 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 are 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 impact the item “Interest and UF indexation Revenue” of the Income Financial Statements.

(c.2)Below are the cash flows of borrowings from banks and bonds issued abroad objects of these hedges and the cash flows of the asset part of the derivative:

 

 

   Demand   Up to
1 month		   Over 1 month
and up to
3 months		   Over 3 months
and up to
12 months		   Over 1 year
and up to
3 years		   Over 3 years
and up to
5 years		   Over  5 years   Total 
   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Hedge element                                                                
Outflows:                                                                
Corporate Bond   —    —    (472)   (450)   (7,576)   (4,686)   (213,764)   (199,047)   (444,033)   (245,308)   (357,141)   (552,541)   (1,297,164)   (1,252,534)   (2,320,150)   (2,254,566)
Obligation USD   —    —    —    —    —    —    (104,466)   (1,366)   —    (88,096)   —    —    —    —    (104,466)   (89,462)
                                                                                 
Hedge instrument                                                                                
Inflows:                                                                                
Cross Currency Swap   —    —    472    450    7,576    4,686    318,230    200,413    444,033    333,404    357,141    552,541    1,297,164    1,252,534    2,424,616    2,344,028 
Net cash flows   —    —    —    —    —    —    —    —    —    —    —    —    —    —    —    — 

 

(c.3)Below are the cash flows of the underlying assets portfolio and the cash flow of the liability part of the derivatives:

 

   Demand   Up to
1 month		   Over 1 month
and up to
3 months		   Over 3 months
and up to
12 months		   Over 1 year
and up to
3 years		   Over 3 years
and
up to 5 years		   Over 5 years   Total 
   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023   2024   2023 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Hedge element                                                                
Inflows:                                                                
Cash flows in CLF   —    —    1,588    1,506    2,804    1,834    306,543    182,057    377,477    328,074    304,794    467,263    1,280,412    1,314,328    2,273,618    2,295,062 
                                                                                 
Hedge instrument                                                                                
Outflows:                                                                                
Cross Currency Swap   —    —    (1,588)   (1,506)   (2,804)   (1,834)   (306,543)   (182,057)   (377,477)   (328,074)   (304,794)   (467,263)   (1,280,412)   (1,314,328)   (2,273,618)   (2,295,062)
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 reinvest the assets until maturity of the relationship hedging.

 

(c.4)The unrealized results generated during the year 2024 by those derivative contracts that conform the hedging instruments in this cash flow hedging strategy, have been recorded with charge to equity amounting to Ch$21,798 million (credit to equity of Ch$113,183 million and charge to equity of Ch$215,476 million as of December 31, 2023 and 2022, respectively). The net effect of taxes charge to equity amounts to Ch$15,913 million (a credit to equity of Ch$82,624 million and a charge to equity of Ch$157,297 million as of December 31, 2023 and 2022, respectively).

 

The accumulated balance for this concept as of December 31, 2024 corresponds to a charge to equity amounted to Ch$12,397 million (a credit to equity amounting to Ch$9,401 million as of December 31, 2023 and a charge to equity amounting to Ch$103,782 million as of December 31, 2022).

 

(c.5)The effect of the cash flow hedging derivatives that offset the result of the hedged instruments corresponds to a credit to income of Ch$100,566 million in 2024 (a charge to result for Ch$4,320 million in 2023 and a credit to income for Ch$251,371 million in 2022).

 

(c.6)As of December 31, 2024 and 2023, there was not any inefficiency in the cash flow hedge, because both, hedged item and hedge instruments, are mirrors of each other, it means that all variation of value attributable to rate and revaluation components are netted totally.

 

(c.7)As of December 31, 2024, 2023 and 2022, the Bank had no hedges of net investments in foreign businesses.