Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Assets and Liabilities [Abstract]

Schedule of Valuation Techniques and Inputs

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

flows model

Prices (internal rates of return) 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 (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices.

Local Central Bank

and Treasury Bonds

Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices.

Mortgage

Notes

Prices (internal rates of return) 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 takes into consideration daily prices and risk/maturity similarities between instruments.

Time

Deposits

Prices are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices and considers risk/maturity similarities between instruments.

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

Model

Prices for volatility surface estimates are obtained from market brokers that are widely used in the Chilean market.

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 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.

Schedule of Fair Value of Financial Assets Liabilities on the Balance Sheet

The following table shows the classification by levels, for financial instruments registered at fair value.

		Level 1								Level 2								Level 3								Total
		2024				2023				2024				2023				2024				2023				2024				2023
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets
Financial Assets held for trading at fair value through profit or loss
Derivative contracts financial:
Forwards			—				—				227,670				212,639				—				—				227,670				212,639
Swaps			—				—				2,070,481				1,818,155				—				—				2,070,481				1,818,155
Call Options			—				—				4,949				3,435				—				—				4,949				3,435
Put Options			—				—				253				1,311				—				—				253				1,311
Futures			—				—				—				—				—				—				—				—
Subtotal			—				—				2,303,353				2,035,540				—				—				2,303,353				2,035,540
Debt Financial Instruments:
From the Chilean Government and Central Bank			210,418				181,702				1,285,039				2,845,611				—				—				1,495,457				3,027,313
Other debt financial instruments issued in Chile			—				—				206,675				301,948				11,273				34,363				217,948				336,311
Financial debt instruments issued Abroad			—				—				976				—				—				—				976				—
Subtotal			210,418				181,702				1,492,690				3,147,559				11,273				34,363				1,714,381				3,363,624

Others			411,689				409,328				—				—				—				—				411,689				409,328

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments: (1)
From the Chilean Government and Central Bank			550,418				532,203				110,359				1,305,449				—				—				660,777				1,837,652
Other debt financial instruments issued in Chile			—				—				1,303,708				1,653,182				71,922				88,483				1,375,630				1,741,665
Financial debt instruments issued Abroad			—				—				51,938				207,208				—				—				51,938				207,208
Equity Instruments:
Instruments issued in Chile			6,920				10,243				—				—				357				358				7,277				10,601
Instruments issued abroad			2,103				1,286				—				—				112				25				2,215				1,311
Subtotal			559,441				543,732				1,466,005				3,165,839				72,391				88,866				2,097,837				3,798,437

Derivative contracts financial for hedging purposes
Forwards			—				—				—				—				—				—				—				—
Swaps			—				—				73,959				49,065				—				—				73,959				49,065
Call Options			—				—				—				—				—				—				—				—
Put Options			—				—				—				—				—				—				—				—
Futures			—				—				—				—				—				—				—				—
Subtotal			—				—				73,959				49,065				—				—				73,959				49,065
Total			1,181,548				1,134,762				5,336,007				8,398,003				83,664				123,229				6,601,219				9,655,994

Financial Liabilities
Financial liabilities held for trading at fair value through profit or loss
Derivative contracts financial:
Forwards			—				—				241,757				221,626				—				—				241,757				221,626
Swaps			—				—				2,197,858				1,969,558				—				—				2,197,858				1,969,558
Call Options			—				—				4,151				1,061				—				—				4,151				1,061
Put Options			—				—				955				3,871				—				—				955				3,871
Futures			—				—				—				—				—				—				—				—
Subtotal			—				—				2,444,721				2,196,116				—				—				2,444,721				2,196,116

Others			—				—				990				2,305				—				—				990				2,305

Derivative contracts financial for hedging purposes
Forwards			—				—				—				—				—				—				—				—
Swaps			—				—				141,040				160,602				—				—				141,040				160,602
Call Options			—				—				—				—				—				—				—				—
Put Options			—				—				—				—				—				—				—				—
Futures			—				—				—				—				—				—				—				—
Subtotal			—				—				141,040				160,602				—				—				141,040				160,602
Total			—				—				2,586,751				2,359,023				—				—				2,586,751				2,359,023

(1)	As of December 31, 2024, 100% of instruments of level 3 have 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

The following table shows the reconciliation between the balances at the beginning and at the end of year for those instruments classified in Level 3, whose fair value is reflected in the Consolidated Financial Statements:

		2024
		Balance as of January 1, 2024				Gain (Loss) Recognized in Income (1)				Gain (Loss) Recognized in Equity (2)				Purchases				Sales				Transfer from Level 1 and 2				Transfer to Level 1 and 2				Balance as of December 31, 2024
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile			34,363				1,409				—				25,279				(56,736	)			6,958				—				11,273
Subtotal			34,363				1,409				—				25,279				(56,736	)			6,958				—				11,273

Financial Assets at fair value through Other Comprehensive Income:
Debt Financial Instruments:
Other debt financial instruments issued in Chile			88,483				586				1,682				58,608				(27,961	)			11,268				(60,744	)			71,922
Equity Instruments:
Instruments issued in Chile			358				—				(1	)			—				—				—				—				357
Instruments issued abroad			25				—				—				87				—				—				—				112
Subtotal			88,866				586				1,681				58,695				(27,961	)			11,268				(60,744	)			72,391

Total			123,229				1,995				1,681				83,974				(84,697	)			18,226				(60,744	)			83,664

		2023
		Balance as of January 1, 2023				Gain (Loss) Recognized in Income (1)				Gain (Loss) Recognized in Equity (2)				Purchases				Sales				Transfer from Level 1 and 2				Transfer to Level 1 and 2				Balance as of December 31, 2023
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile			100,519				767				—				18,085				(62,179	)			15,190				(38,019	)			34,363
Subtotal			100,519				767				—				18,085				(62,179	)			15,190				(38,019	)			34,363

Financial Assets at fair value through Other Comprehensive Income:
Debt Financial Instruments:
Other debt financial instruments issued in Chile			41,283				4,093				(7,355	)			63,930				(1,695	)			3,951				(15,724	)			88,483
Equity Instruments:
Instruments issued in Chile			358				—				—				—				—				—				—				358
Instruments issued abroad			25				—				—				—				—				—				—				25
Subtotal			41,666				4,093				(7,355	)			63,930				(1,695	)			3,951				(15,724	)			88,866

Total			142,185				4,860				(7,355	)			82,015				(63,874	)			19,141				(53,743	)			123,229

(1)	Recorded in income under item “Net Financial income (expense)”.

(2)	Recorded in equity under item “Accumulated other comprehensive income”.

Schedule of Instruments Classified in Level 3 using Alternative in Key Valuation Assumptions

The following table shows the sensitivity, by type of instrument, of those instruments classified in Level 3 using alternative in key valuation assumptions:

	As of December 31, 2024						As of December 31, 2023
	Level 3			Sensitivity to changes in key assumptions of models			Level 3			Sensitivity to changes in key assumptions of models
	MCh$			MCh$			MCh$			MCh$

Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile		11,273			(255	)		34,363			(696	)
Subtotal		11,273			(255	)		34,363			(696	)

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments:
Other debt financial instruments issued in Chile		71,922			(2,320	)		88,483			(2,721	)
Equity Instruments:
Instruments issued in Chile		357			—			358			—
Instruments issued abroad		112			—			25			—
Subtotal		72,391			(2,320	)		88,866			(2,721	)
Total		83,664			(2,575	)		123,229			(3,417	)

Schedule of Fair Values of the Financial Assets and Liabilities that are not Recorded at Fair Value in the Statement of Financial Position

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.

	Book Value						Estimated Fair Value
	2024			2023			2024			2023
	MCh$			MCh$			MCh$			MCh$
Assets
Cash and due from banks		2,699,076			2,464,648			2,699,076			2,464,648
Transactions in the course of collection		372,456			415,505			372,456			415,505
Subtotal		3,071,532			2,880,153			3,071,532			2,880,153
Financial assets at amortized cost
Rights by resale agreements and securities lending		87,291			71,822			87,291			71,822
Debt financial instruments		944,074			1,431,083			892,550			1,368,416
Loans and advances to Banks
Domestic banks		299,147			—			299,147			—
Central Bank of Chile		—			2,100,933			—			2,100,933
Foreign banks		366,568			417,657			366,245			412,662
Subtotal		1,697,080			4,021,495			1,645,233			3,953,833
Loans to customers, net
Commercial loans		19,893,412			19,770,403			19,561,279			19,193,778
Residential mortgage loans		13,197,695			12,277,266			13,000,178			11,656,071
Consumer loans		5,151,755			4,893,418			5,247,985			5,025,163
Subtotal		38,242,862			36,941,087			37,809,442			35,875,012
Total		43,011,474			43,842,735			42,526,207			42,708,998

Liabilities
Transactions in the course of payment		283,605			356,871			283,605			356,871
Financial liabilities at amortized cost
Current accounts and other demand deposits		14,630,797			13,670,793			14,630,797			13,670,793
Saving accounts and time deposits		14,345,223			15,538,196			14,346,676			15,536,406
Obligations by repurchase agreements and securities lending		109,794			157,173			109,794			157,173
Borrowings from financial institutions		1,103,468			5,360,715			1,071,097			5,152,776
Debt financial instruments issued
Letters of credit for residential purposes		849			1,433			946			1,533
Letters of credit for general purposes		1			11			1			12
Bonds		9,689,219			9,358,621			9,596,699			9,090,188
Other financial obligations		284,479			339,305			284,479			339,327
Subtotal		40,163,830			44,426,247			40,040,489			43,948,208
Debt financial instruments issued for regulatory capital purposes
Subordinate bonds		1,068,879			1,039,814			1,057,509			1,035,801
Total		41,516,314			45,822,932			41,381,603			45,340,880

Schedule of Fair Value Financial Assets and Liabilities not Measured at Fair Value on the Balance Sheet

The table below sets forth the fair value of Financial Assets and Liabilities not measured at fair value on the balance sheet, for the years ended December 31, 2024 and 2023:

		Level 1 Estimated Fair Value								Level 2 Estimated Fair Value								Level 3 Estimated Fair Value								Total Estimated Fair Value
		2024				2023				2024				2023				2024				2023				2024				2023
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Assets
Cash and due from banks			2,699,076				2,464,648				—				—				—				—				2,699,076				2,464,648
Transactions in the course of collection			372,456				415,505				—				—				—				—				372,456				415,505
Subtotal			3,071,532				2,880,153				—				—				—				—				3,071,532				2,880,153
Financial assets at amortized cost
Rights by resale agreements and securities lending			87,291				71,822				—				—				—				—				87,291				71,822
Debt financial instruments			892,550				1,368,416				—				—				—				—				892,550				1,368,416
Loans and advances to Banks
Domestic banks			299,147				—				—				—				—				—				299,147				—
Central Bank of Chile			—				2,100,933				—				—				—				—				—				2,100,933
Foreign banks			—				—				—				—				366,245				412,662				366,245				412,662
Subtotal			1,278,988				3,541,171				—				—				366,245				412,662				1,645,233				3,953,833
Loans to customers, net
Commercial loans			—				—				—				—				19,561,279				19,193,778				19,561,279				19,193,778
Residential mortgage loans			—				—				—				—				13,000,178				11,656,071				13,000,178				11,656,071
Consumer loans			—				—				—				—				5,247,985				5,025,163				5,247,985				5,025,163
Subtotal			—				—				—				—				37,809,442				35,875,012				37,809,442				35,875,012
Total			4,350,520				6,421,324				—				—				38,175,687				36,287,674				42,526,207				42,708,998

Liabilities
Transactions in the course of payment			283,605				356,871				—				—				—				—				283,605				356,871
Financial liabilities at amortized cost
Current accounts and other demand deposits			14,630,797				13,670,793				—				—				—				—				14,630,797				13,670,793
Saving accounts and time deposits			—				—				—				—				14,346,676				15,536,406				14,346,676				15,536,406
Obligations by repurchase agreements and securities lending			109,794				157,173				—				—				—				—				109,794				157,173
Borrowings from financial institutions			—				—				—				—				1,071,097				5,152,776				1,071,097				5,152,776
Debt financial instruments issued
Letters of credit for residential purposes			—				—				946				1,533				—				—				946				1,533
Letters of credit for general purposes			—				—				1				12				—				—				1				12
Bonds			—				—				9,596,699				9,090,188				—				—				9,596,699				9,090,188
Other financial obligations			—				—				—				—				284,479				339,327				284,479				339,327
Subtotal			14,740,591				13,827,966				9,597,646				9,091,733				15,702,252				21,028,509				40,040,489				43,948,208
Debt financial instruments issued for regulatory capital purposes
Subordinate bonds			—				—								—				1,057,509				1,035,801				1,057,509				1,035,801
Total			15,024,196				14,184,837				9,597,646				9,091,733				16,759,761				22,064,310				41,381,603				45,340,880