Expected Credit Losses

12 Months Ended

Dec. 31, 2024

39.

Expected credit losses:

(a)

The composition is as follows:

	2024			2023			2022
	MCh$			MCh$			MCh$

Expense of allowances established for credit risk		421,210			321,829			418,416
Expense of provisions for contingent loans		(4,200	)		(53,875	)		51,445
Recovery of written-off credits		(65,313	)		(63,256	)		(65,740	)
Impairments for credit risk from financial assets at fair value through other comprehensive income		1,009			(2,754	)		8,009
Total		352,706			201,944			412,130

(b)

Summary of the expense of provisions constituted for credit risk and expected credit losses:

	Expense of provisions constituted in the year
	Evaluation
As of December 31, 2024	Individual		Group		Total
	MCh$		MCh$		MCh$
Loans and advances to Banks
Allowances established		559		—		559
Allowances released		—		—		—
Subtotal		559		—		559
Commercial loans
Allowances established		25,039		66,749		91,788
Allowances released		—		—		—
Subtotal		25,039		66,749		91,788
Residential mortgage loans
Allowances established		—		4,976		4,976
Allowances released		—		—		—
Subtotal		—		4,976		4,976
Consumer loans
Allowances established		—		323,887		323,887
Allowances released		—		—		—
Subtotal		—		323,887		323,887
Expense of allowances established for credit risk		25,598		395,612		421,210

Contingent loans
Loans and advances to Banks						—
Commercial loans						(5,258	)
Consumer loans						1,058
Expenses of provisions for contingent loans						(4,200	)

Impairments for credit risk from financial assets at fair value through other comprehensive income						1,009

Recovery of written-off credits
Loans and advances to Banks						—
Commercial loans						(19,752	)
Residential mortgage loans						(6,941	)
Consumer loans						(38,620	)
Subtotal						(65,313	)
Total Expected Credit Losses						352,706

	Expense of provisions constituted in the year
	Evaluation
As of December 31, 2023	Individual			Group			Total
	MCh$			MCh$			MCh$
Loans and advances to Banks
Allowances established		—			—			—
Allowances released		(270	)		—			(270	)
Subtotal		(270	)		—			(270	)
Commercial loans
Allowances established		—			65,734			65,734
Allowances released		(28,145	)		—			(28,145	)
Subtotal		(28,145	)		65,734			37,589
Residential mortgage loans
Allowances established		—			(8,422	)		(8,422	)
Allowances released		—			—			—
Subtotal		—			(8,422	)		(8,422	)
Consumer loans
Allowances established		—			292,932			292,932
Allowances released		—			—			—
Subtotal		—			292,932			292,932
Expense of allowances established for credit risk		(28,415	)		350,244			321,829

Contingent loans
Loans and advances to Banks								—
Commercial loans								(15,670	)
Consumer loans								(38,205	)
Expenses of provisions for contingent loans								(53,875	)

Impairments for credit risk from financial assets at fair value through other comprehensive income								(2,754	)

Recovery of written-off credits
Loans and advances to Banks								—
Commercial loans								(19,660	)
Residential mortgage loans								(11,716	)
Consumer loans								(31,880	)
Subtotal								(63,256	)
Total Expected Credit Losses								201,944

	Expense of provisions constituted in the year
	Evaluation
As of December 31, 2022	Individual		Group		Total
	MCh$		MCh$		MCh$
Loans and advances to Banks
Allowances established		1,792		—		1,792
Allowances released		—		—		—
Subtotal		1,792		—		1,792
Commercial loans
Allowances established		23,542		67,256		90,798
Allowances released		—		—		—
Subtotal		23,542		67,256		90,798
Residential mortgage loans
Allowances established		—		22,706		22,706
Allowances released		—		—		—
Subtotal		—		22,706		22,706
Consumer loans
Allowances established		—		303,120		303,120
Allowances released		—		—		—
Subtotal		—		303,120		303,120
Expense of allowances established for credit risk		25,334		393,082		418,416

Contingent loans
Loans and advances to Banks						—
Commercial loans						30,645
Consumer loans						20,800
Expenses of provisions for contingent loans						51,445

Impairments for credit risk from financial assets at fair value through other comprehensive income						8,009

Recovery of written-off credits
Loans and advances to Banks						—
Commercial loans						(26,554	)
Residential mortgage loans						(10,481	)
Consumer loans						(28,705	)
Subtotal						(65,740	)
Total Expected Credit Losses						412,130