Table of Contents

 

 

 

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

 

For the month of April, 2012

 

Commission File Number 001-15266

 

BANK OF CHILE

(Translation of registrant’s name into English)

 

Ahumada 251
Santiago, Chile

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x   Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): 
o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): 
o

 

Indicate by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the Commission pursuant to Rule 
12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o   No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-       

 

 

 



Table of Contents

 

BANCO DE CHILE
REPORT ON FORM 6-K

 

Attached Banco de Chile’s Financial Statements with notes for the First Quarter of 2012.

 



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

 

Index

 

I.

Interim Condensed Consolidated Statements of Financial Position

II.

Interim Condensed Consolidated Statements of Comprehensive Income

III.

Interim Condensed Consolidated Statements of Changes in Equity

IV.

Interim Condensed Consolidated Statements of Cash Flows

V.

Notes to the Interim Condensed Consolidated Financial Statements

 

 

 

Ch$ or CLP

=

Chilean pesos

 

MCh$

=

Millions of Chilean pesos

 

US$ or USD

=

U.S. dollars

 

ThUS$

=

Thousands of U.S. dollars

 

JPY

=

Japanese yen

 

EUR

=

Euro

 

MXN

=

Mexican pesos

 

U.F. or CLF

=

Unidad de fomento

 

 

 

(The unidad de fomento is an inflation-indexed, Chilean peso denominated monetary unit set daily in advance on the basis of the previous month’s inflation rate).

 

 

 

 

 

IFRS

=

International Financial Reporting Standards

 

IAS

=

International Accounting Standards

 

RAN

=

Compilation of Norms of the Chilean Superintendency of Banks

 

IFRIC

=

International Financial Reporting Interpretations Committee

 

SIC

=

Standards Interpretation Committee

 



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

 

INDEX

 

 

 

Page

Interim Condensed Consolidated Statement of Financial Position

3

Interim Condensed Consolidated Statements of Comprehensive Income

4

Interim Condensed Consolidated Statement of Changes in Equity

6

Interim Condensed Consolidated Statements of Cash Flows

7

1.

Company Information:

8

2.

Legal provisions, basis of preparation and other information:

8

3.

New Accounting Pronouncements:

12

4.

Changes in Accounting Policies and Disclosures:

16

5.

Relevant Events:

16

6.

Segment Reporting:

17

7.

Cash and Cash Equivalents:

20

8.

Financial Assets Held-for-trading:

21

9.

Repurchase Agreements and Security Lending and Borrowing:

22

10.

Derivative Instruments and Accounting Hedges:

25

11.

Loans and advances to Banks:

29

12.

Loans to Customers, net:

30

13.

Investment Securities:

34

14.

Investments in Other Companies:

36

15.

Intangible Assets:

38

16.

Property and equipment:

41

18.

Other Assets:

46

19.

Current accounts and Other Demand Deposits:

47

20.

Savings accounts and Time Deposits:

47

22.

Debt Issued:

50

23.

Other Financial Obligations:

52

24.

Provisions:

52

25.

Other Liabilities:

56

26.

Contingencies and Commitments:

57

27.

Equity:

61

28.

Interest Revenue and Expenses:

64

29.

Income and Expenses from Fees and Commissions:

66

30.

Net Financial Operating Income:

67

31.

Foreign Exchange Transactions, net:

67

32.

Provisions for Loan Losses:

68

33.

Personnel Expenses:

69

34.

Administrative Expenses:

70

35.

Depreciation, Amortization and Impairment:

71

36.

Other Operating Income:

72

37.

Other Operating Expenses:

73

38.

Related Party Transactions:

74

39.

Fair Value of Financial Assets and Liabilities:

79

40.

Maturity of Assets and Liabilities:

86

41.

Subsequent Events:

88

 



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

For the periods ended

(Translation of financial statements originally issued in Spanish)

(Expressed in million of Chilean pesos)

 

 

 

 

 

March
2012

 

December
2011

 

March
2011

 

 

 

Notes

 

MCh$

 

MCh$

 

MCh$

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

7

 

996,023

 

881,146

 

919,219

 

Transactions in the course of collection

 

7

 

546,454

 

373,639

 

859,776

 

Financial assets held-for-trading

 

8

 

346,338

 

301,771

 

363,514

 

Receivables from Repurchase agreements and Security Borrowing

 

9

 

40,050

 

47,981

 

101,333

 

Derivative instruments

 

10

 

375,169

 

385,688

 

390,798

 

Loans and advances to banks

 

11

 

299,377

 

648,425

 

343,713

 

Loans to customers, net

 

12

 

17,357,290

 

16,993,303

 

14,490,715

 

Financial assets available-for-sale

 

13

 

1,359,057

 

1,468,898

 

1,222,391

 

Financial assets held-to-maturity

 

13

 

 

 

 

Investments in other companies

 

14

 

15,880

 

15,418

 

13,847

 

Intangible assets

 

15

 

35,216

 

35,517

 

35,929

 

Property and equipment

 

16

 

209,188

 

207,888

 

206,617

 

Current tax assets

 

17

 

2,197

 

1,407

 

10,955

 

Deferred tax assets

 

17

 

112,394

 

116,282

 

107,603

 

Other assets

 

18

 

261,008

 

263,584

 

333,216

 

TOTAL ASSETS

 

 

 

21,955,641

 

21,740,947

 

19,399,626

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Current accounts and other demand deposits

 

19

 

5,155,775

 

4,895,426

 

4,501,384

 

Transactions in the course of payment

 

7

 

349,718

 

155,424

 

695,346

 

Payables from Repurchase Agreements and Security Lending

 

9

 

301,456

 

223,202

 

192,189

 

Savings accounts and time deposits

 

20

 

9,140,305

 

9,282,324

 

8,160,115

 

Derivative instruments

 

10

 

393,669

 

429,913

 

389,952

 

Borrowings from financial institutions

 

21

 

1,698,913

 

1,690,939

 

1,517,854

 

Debt issued

 

22

 

2,499,397

 

2,388,341

 

1,750,887

 

Other financial obligations

 

23

 

146,950

 

184,785

 

164,959

 

Current tax liabilities

 

17

 

7,442

 

4,502

 

2,755

 

Deferred tax liabilities

 

17

 

23,722

 

23,213

 

26,322

 

Provisions

 

24

 

258,396

 

457,938

 

224,342

 

Other liabilities

 

25

 

213,311

 

265,765

 

362,006

 

TOTAL LIABILITIES

 

 

 

20,189,054

 

20,001,772

 

17,988,111

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

27

 

 

 

 

 

 

 

Attributable to Bank’s Owners:

 

 

 

 

 

 

 

 

 

Capital

 

 

 

1,509,994

 

1,436,083

 

1,225,969

 

Reserves

 

 

 

177,574

 

119,482

 

119,482

 

Other comprehensive income

 

 

 

12,883

 

(2,075

)

9,034

 

Retained earnings:

 

 

 

 

 

 

 

 

 

Retained earnings from previous periods

 

 

 

16,379

 

16,379

 

16,091

 

Income for the period

 

 

 

121,161

 

428,805

 

116,885

 

Less:

 

 

 

 

 

 

 

 

 

Provision for minimum dividends

 

 

 

(71,405

)

(259,501

)

(75,947

)

Subtotal

 

 

 

1,766,586

 

1,739,173

 

1,411,514

 

Non-controlling interests

 

 

 

1

 

2

 

1

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

 

1,766,587

 

1,739,175

 

1,411,515

 

TOTAL LIABILITIES AND EQUITY

 

 

 

21,955,641

 

21,740,947

 

19,399,626

 

 

The accompanying notes 1 to 41 are an integral part of these interim condensed consolidated financial statements

 

3



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME

For the three-months ended March 31, 2012 and 2011

(Translation of financial statements originally issued in Spanish)

(Expressed in million of Chilean pesos)

 

 

 

 

 

March
2012

 

March 
2011

 

 

 

Notes

 

MCh$

 

MCh$

 

A.   CONSOLIDATED STATEMENT OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest revenue

 

28

 

434,426

 

309,347

 

Interest expense

 

28

 

(190,071

)

(107,384

)

Net interest income

 

 

 

244,355

 

201,963

 

 

 

 

 

 

 

 

 

Income from fees and commissions

 

29

 

91,301

 

91,549

 

Expenses from fees and commissions

 

29

 

(16,035

)

(13,534

)

Net fees and commission income

 

 

 

75,266

 

78,015

 

 

 

 

 

 

 

 

 

Net financial operating income

 

30

 

(1,779

)

28,100

 

Foreign exchange transactions, net

 

31

 

12,241

 

(11,887

)

Other operating income

 

36

 

7,637

 

7,244

 

Total operating revenues

 

 

 

337,720

 

303,435

 

 

 

 

 

 

 

 

 

Provisions for loan losses

 

32

 

(46,950

)

(26,120

)

OPERATING REVENUES, NET OF PROVISIONS FOR LOAN LOSSES

 

 

 

290,770

 

277,315

 

 

 

 

 

 

 

 

 

Personnel expenses

 

33

 

(75,204

)

(69,107

)

Administrative expenses

 

34

 

(57,525

)

(55,548

)

Depreciation and amortization

 

35

 

(7,720

)

(7,737

)

Impairment

 

35

 

 

 

Other operating expenses

 

37

 

(14,901

)

(9,011

)

TOTAL OPERATING EXPENSES

 

 

 

(155,350

)

(141,403

)

 

 

 

 

 

 

 

 

NET OPERATING INCOME

 

 

 

135,420

 

135,912

 

 

 

 

 

 

 

 

 

Income attributable to associates

 

14

 

590

 

803

 

Income before income tax

 

 

 

136,010

 

136,715

 

Income tax

 

 

 

 

 

 

 

 

 

17

 

(14,849

)

(19,830

)

NET INCOME FOR THE PERIOD

 

 

 

121,161

 

116,885

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Bank’s Owners

 

 

 

121,161

 

116,885

 

Non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to Bank’s Owners:

 

 

 

Ch$

 

Ch$

 

Basic net income per share

 

27

 

1.39

 

1.42

 

Diluted net income per share

 

27

 

1.39

 

1.42

 

 

The accompanying notes 1 to 41 are an integral part of these interim condensed consolidated financial statements

 

4



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME

For the three-months ended March 31, 2012 and 2011

 (Translation of financial statements originally issued in Spanish)

(Expressed in million of Chilean pesos)

 

 

 

 

 

March
2012

 

March
2011

 

 

 

Notes

 

MCh$

 

MCh$

 

B.   CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FOR THE PERIOD

 

 

 

121,161

 

116,885

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses):

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on available for sale instruments

 

13

 

17,436

 

3,461

 

Gains and losses on derivatives held as cash flow hedges

 

 

 

772

 

 

Cumulative translation adjustment

 

 

 

(45

)

18

 

Other comprehensive income before income taxes

 

 

 

18,163

 

3,479

 

 

 

 

 

 

 

 

 

Income tax related to other comprehensive income

 

17

 

(3,118

)

(786

)

 

 

 

 

 

 

 

 

Total other comprehensive income

 

 

 

15,045

 

2,693

 

 

 

 

 

 

 

 

 

TOTAL CONSOLIDATED COMPREHENSIVE INCOME

 

 

 

136,206

 

119,578

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Bank’s owners

 

 

 

136,206

 

119,578

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive net income per share attributable to Bank’s owners:

 

 

 

Ch$

 

Ch$

 

Basic net income per share

 

 

 

1.57

 

1.45

 

Diluted net income per share

 

 

 

1.57

 

1.45

 

 

The accompanying notes 1 to 41 are an integral part of these interim condensed consolidated financial statements

 

5



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the three months ended March 31, 2011 and 2012

 (Translation of financial statements originally issued in Spanish)

(Expressed in millions of Chilean pesos)

 

 

 

 

 

 

 

Reserves

 

Other comprehensive income

 

Retained earnings

 

 

 

 

 

 

 

 

 

 

 

Paid-in
Capital

 

Other
reserves

 

Reserves 
from 
earnings

 

Unrealized 
gains 
(losses) on 
available-
for- sale

 

Derivatives
cash flow
hedge

 

Cumulative
translation
adjustment

 

Retained 
earnings

from 
previous 
periods

 

Income for
the year

 

Provision 
for 
minimum 
dividends

 

Attributable
to equity 
holders of 
the parent

 

Non-
controlling 
interest

 

Total 
equity

 

 

 

Notes

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2010

 

 

 

1,158,752

 

32,256

 

55,130

 

5,974

 

 

(104

)

16,091

 

378,529

 

(242,503

)

1,404,125

 

2

 

1,404,127

 

Capitalization of retained earnings

 

 

 

67,217

 

 

 

 

 

 

 

(67,217

)

 

 

 

 

Retention (released) earnings

 

 

 

 

 

32,096

 

 

 

 

 

(32,096

)

 

 

 

 

Dividends distributions and paid

 

27

 

 

 

 

 

 

 

 

(279,216

)

242,503

 

(36,713

)

(1

)

(36,714

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative translation adjustment

 

 

 

 

 

 

 

 

 

18

 

 

 

 

18

 

 

18

 

Valuation adjustment on available-for-sale instruments, net

 

 

 

 

 

 

3,146

 

 

 

 

 

 

3,146

 

 

3,146

 

Income for the period 2011

 

 

 

 

 

 

 

 

 

 

116,885

 

 

116,885

 

 

116,885

 

Provision for minimum dividends

 

27

 

 

 

 

 

 

 

 

 

(75,947

)

(75,947

)

 

(75,947

)

Balances as of March 31, 2011

 

 

 

1,225,969

 

32,256

 

87,226

 

9,120

 

 

(86

)

16,091

 

116,885

 

(75,947

)

1,411,514

 

1

 

1,411,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2011

 

 

 

1,436,083

 

32,256

 

87,226

 

(1,644

)

(395

)

(36

)

16,379

 

428,805

 

(259,501

)

1,739,173

 

2

 

1,739,175

 

Capitalization of retained earnings

 

 

 

73,911

 

 

 

 

 

 

 

(73,911

)

 

 

 

 

Retention (released) earnings

 

 

 

 

 

58,092

 

 

 

 

 

(58,092

)

 

 

 

 

Dividends distributions and paid

 

27

 

 

 

 

 

 

 

 

(296,802

)

259,501

 

(37,301

)

(1

)

(37,302

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative translation adjustment

 

 

 

 

 

 

 

 

(45

)

 

 

 

(45

)

 

(45

)

Cash flow hedge adjustment, net

 

 

 

 

 

 

 

633

 

 

 

 

 

633

 

 

633

 

Valuation adjustment on available-for-sale instruments (net)

 

 

 

 

 

 

14,370

 

 

 

 

 

 

14,370

 

 

14,370

 

Income for the period 2012

 

 

 

 

 

 

 

 

 

 

121,161

 

 

121,161

 

 

121,161

 

Provision for minimum dividends

 

27

 

 

 

 

 

 

 

 

 

(71,405

)

(71,405

)

 

(71,405

)

Balances as of March 31, 2012

 

 

 

1,509,994

 

32,256

 

145,318

 

12,726

 

238

 

(81

)

16,379

 

121,161

 

(71,405

)

1,766,586

 

1

 

1,766,587

 

 

The accompanying notes 1 to 41 are an integral part of these interim condensed consolidated financial statements

 

6



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three-months ended March 31, 2012 and 2011

 (Translation of financial statements originally issued in Spanish)

(Expressed in million of Chilean pesos)

 

 

 

 

 

March
2012

 

March
2011

 

 

 

Notes

 

MCh$

 

MCh$

 

 

 

 

 

 

 

 

 

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income for the period

 

 

 

121,161

 

116,885

 

Items that do not represent cash flows:

 

 

 

 

 

 

 

Depreciation and amortization

 

35

 

7,720

 

7,737

 

Provision for loan losses

 

32

 

55,157

 

35,875

 

Provision of contingent loans

 

32

 

751

 

1,734

 

Fair value adjustment of financial assets held-for-trading

 

 

 

1,378

 

(232

)

(Income) loss attributable to investments in other companies

 

14

 

(590

)

(692

)

(Income) loss sales of assets received in lieu of payment

 

36

 

(1,695

)

(1,255

)

(Income) loss on sales of property and equipment

 

 

 

(57

)

(1,269

)

(Increase) decrease in other assets and liabilities

 

 

 

(117,648

)

47,648

 

Charge-offs of assets received in lieu of payment

 

37

 

254

 

364

 

Other credits (debits) that do not represent cash flows

 

 

 

(79,621

)

11,714

 

Net changes in interest and fee accruals

 

 

 

3,729

 

(78,347

)

Changes in assets and liabilities that affect operating cash flows:

 

 

 

 

 

 

 

(Increase) decrease in loans and advances to banks, net

 

 

 

349,072

 

6,627

 

(Increase) decrease in loans to customers

 

 

 

(366,234

)

(426,250

)

(Increase) decrease in financial assets held-for-trading, net

 

 

 

(76,249

)

(85,649

)

(Increase) decrease in deferred taxes, net

 

17

 

4,397

 

3,587

 

Increase (decrease)in current account and other demand deposits

 

 

 

260,467

 

55,004

 

Increase (decrease) in payables from repurchase agreements and security lending

 

 

 

56,037

 

86,910

 

Increase (decrease) in savings accounts and time deposits

 

 

 

(166,389

)

441,150

 

Proceeds from sale of assets received in lieu of payment

 

 

 

2,228

 

1,821

 

Total cash flows provided by operating activities

 

 

 

53,868

 

223,362

 

 

 

 

 

 

 

 

 

CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:

 

 

 

 

 

 

 

(Increase) decrease in financial assets available for sale, net

 

 

 

114,873

 

(48,876

)

Purchases of property and equipment

 

16

 

(6,339

)

(5,579

)

Proceeds from sales of property and equipment

 

 

 

73

 

1,628

 

Purchases of intangible assets

 

15

 

(2,300

)

(2,121

)

Investments in other companies

 

14

 

 

 

Dividends received from investments in other companies

 

14

 

 

 

Total cash flows provided by investing activities

 

 

 

106,307

 

(54,948

)

 

 

 

 

 

 

 

 

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Repayment of mortgage finance bonds

 

 

 

(7,497

)

(11,019

)

Proceeds from bond issuances

 

22

 

109,811

 

 

Redemption of bond issuances

 

 

 

(26,038

)

(10,056

)

Dividends paid

 

 

 

(296,802

)

(279,216

)

Increase (decrease) in borrowings from financial institutions

 

 

 

234,001

 

18,906

 

Increase (decrease) in other financial obligations

 

 

 

(36,652

)

(11,316

)

Increase (decrease) in borrowings from Central Bank of Chile

 

 

 

(22,793

)

 

Payment of borrowings from Central Bank of Chile (long-term)

 

 

 

(8

)

(5

)

Long-term foreign borrowings

 

 

 

63,492

 

208,539

 

Payment of long-term foreign borrowings

 

 

 

(189,716

)

(17,831

)

Other long-term borrowings

 

 

 

249

 

1,786

 

Payment of other long-term borrowings

 

 

 

(1,355

)

(4,722

)

Total cash flows used in financing activities

 

 

 

(173,308

)

(104,934

 

TOTAL NET POSITIVE (NEGATIVE) CASH FLOWS FOR THE PERIOD

 

 

 

(13,133

)

63,480

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

7

 

1,429,908

 

1,447,694

 

Cash and cash equivalents at end of period

 

7

 

1,416,775

 

1,511,174

 

 

The accompanying notes 1 to 41 are an integral part of these interim condensed consolidated financial statements

 

7



Table of Contents

 

BANCO DE CHILE AND SUBSIDIARIES

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three-months ended March 31, 2011 and 2012

 (Translation of financial statements originally issued in Spanish)

(Expressed in million of Chilean pesos)

 


 

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”), Since 2001, - when the bank was first listed on the New York Stock Exchange (“NYSE”), in the course of its American Depository Receipt (ADR) program, which is also registered at the London Stock Exchange — Banco de Chile additionally follows the regulations published by the United States Securities and Exchange Commission (“SEC”), Banco de Chile’s shares are also listed on the Latin American securities market of the Madrid Stock Exchange (“LATIBEX”).

 

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 retail.  Additionally, the Bank offers international as well as treasury banking services. The Bank’s subsidiaries provide other services including securities brokerage, mutual fund and investment management, factoring, insurance brokerage, financial advisory and securitization.

 

Banco de Chile’s legal domicile is Ahumada 251, Santiago, Chile and its Web site is www.bancochile.cl.

 

2.                          Legal provisions, basis of preparation and other information:

 

(a)                      Legal provisions:

 

The General Banking Law in its article N° 15 authorizes the Chilean Superintendency of Banks (SBIF) to issue generally applicable accounting standards for entities it supervises. The Corporations Law, in turn, requires generally accepted accounting principles to be followed.

 

Based on the aforementioned laws, banks should use the criteria provided by the Superintendency in accordance with the Compendium of Accounting Standards, and any matter not addressed therein, as long as it does not contradict its instructions, should adhere to generally accepted accounting principles in technical standards issued by the Chilean Association of Accountants,  that coincide with international accounting standards and international financial reporting standards agreed upon by the International Accounting Standards Board (IASB). Should there be discrepancies between these generally accepted accounting principles and the accounting criteria issued by the SBIF, the latter shall prevail.

 

8



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

2.                          Legal provisions, basis of preparation and other information, continued:

 

(b)                      Basis of consolidation:

 

(b.1)             The current Interim Condensed Consolidated Financial Statements for the three-months period ended March 31, 2012 have been prepared according to the Compendium of Accounting Standards, Chapter C-2 issued by the Superintendency of Banks and Financial Institutions and the International Financial Reporting Standard N°34 (“NIC 34”) “Intermediate Financial Information”.

 

According to NIC 34, the intermediate financial information is prepared solely with the intention of updating the content of the last annual Consolidated Financial Statements, putting emphasis on the new activities, events and circumstances occurred during the three months period after period end and not duplicating the previous published information in the last Consolidated Financial Statements. Therefore, the current Financial Statements do not include all the complete information required for the Consolidated Financial statements according to the international accounting standards and international financial information agreed upon by the IASB, reason by which for a suitable understanding of the information that is included in these Financial Statements, they must be read along with the annual Consolidated Financial statements of Banco de Chile, corresponding to the annual exercise ended December 31, 2011.

 

b.2)                 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

 

 

 

 

 

 

 

 

 

March

 

March

 

March

 

March

 

March

 

March

 

 

 

 

 

 

 

Functional

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Rut

 

Subsidiaries

 

Country

 

Currency

 

%

 

%

 

%

 

%

 

%

 

%

 

44,000,213-7

 

Banchile Trade Services Limited

 

Hong Kong

 

US$

 

100.00

 

100.00

 

 

 

100.00

 

100.00

 

96,767,630-6

 

Banchile Administradora General de Fondos S.A.

 

Chile

 

$

 

  99.98

 

  99.98

 

0.02

 

0.02

 

100.00

 

100.00

 

96,543,250-7

 

Banchile Asesoría Financiera S.A.

 

Chile

 

$

 

  99.96

 

  99.96

 

 

 

  99.96

 

  99.96

 

77,191,070-K

 

Banchile Corredores de Seguros Ltda.

 

Chile

 

$

 

  99.83

 

  99.83

 

0.17

 

0.17

 

100.00

 

100.00

 

96,894,740-0

 

Banchile Factoring S.A.

 

Chile

 

$

 

  99.75

 

  99.75

 

0.25

 

0.25

 

100.00

 

100.00

 

96,571,220-8

 

Banchile Corredores de Bolsa S.A.

 

Chile

 

$

 

  99.70

 

  99.70

 

0.30

 

0.30

 

100.00

 

100.00

 

96,932,010-K

 

Banchile Securitizadora S.A.

 

Chile

 

$

 

  99.00

 

  99.00

 

1.00

 

1.00

 

100.00

 

100.00

 

96,645,790-2

 

Socofin S.A.

 

Chile

 

$

 

  99.00

 

  99.00

 

1.00

 

1.00

 

100.00

 

100.00

 

96,510,950-1

 

Promarket S.A.

 

Chile

 

$

 

  99.00

 

  99.00

 

1.00

 

1.00

 

100.00

 

100.00

 

 

9



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

2.                          Summary of Significant Accounting Principles, continued:

 

(c)                      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. Real results could differ from these estimated amounts.  Details on the use of estimates and judgment and their effect on the amounts recognized in the financial statement are included in the following notes:

 

1.          Goodwill valuation (Note 15);

2.          Useful lives of property and equipment and intangible assets (Notes 15 y 16);

3.          Income taxes and deferred taxes (Note 17);

4.          Provisions (Note 24);

5.          Commitments and contingencies (Note 26);

6.          Provision for loan losses (Note 32);

7.          Impairment of other financial assets (Note 35);

8.          Fair value of financial assets and liabilities (Note 39).

 

During the three months period ended March 31, 2012 there have been no significant changes to estimations made when preparing the Bank’s 2011 Annual Financial Statements, other than those indicated in these Interim Condensed Consolidated Financial Statements.

 

d)              Reclassification:

 

For comparative purposes, certain line items of the March 2011 Interim Condensed Consolidated Financial Statements have been reclassified.

 

e)              Comparison of the Information:

 

The information contained in these financial statements corresponding to year 2011 is presented, unique and exclusively, to compare with the information regarding the period of three months ended March 31, 2012.

 

10



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

2.                                                 Summary of Significant Accounting Principles, continued:

 

f)                Seasonality or Cyclical Character of the Transactions of the Intermediate Period:

 

Due to the nature of its business, the Bank and its subsidiaries’ activities do not have a cyclical or seasonal character. Accordingly, no specific details have been included on the notes to this Interim Condensed Consolidated Financial Statements.

 

g)             Relative Importance:

 

When determining the information to present on the different items from the financial statements or other subjects, in accordance with NIC 34, the Bank has considered the relative importance in relation to the financial statements of the period.

 

11



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

3.                          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) but which have not come into effect as of March 31, 2012, as per the following detail:

 

IAS 1 Presentation of Financial Statements

 

The amendments to IAS 1 published by the IASB on June 16, 2011 require entities to group items presented in OCI on the basis of whether they are potentially recycled to profit or loss (ie reclassification adjustments). The amendments do not address which items are presented in OCI or which and when items are recycled through profit or loss, but reaffirm that items in OCI and profit or loss should be presented as either a single statement or two consecutive statements.  Entities are required to apply amendments in the annual periods beginning on or after July 1, 2012, or earlier.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IAS 19 Employee Benefits

 

The amendments to IAS 19 published by the IASB on June 16, 2011 eliminate the option to defer recognition of gains and losses (the ‘corridor method’), streamline the presentation of changes in assets and liabilities arising from defined benefit plans and enhance the disclosure requirements for defined benefit plans.  Entities are required to apply amendments in the annual periods beginning on or after January 1, 2013, or earlier.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IAS 27 Separate Financial Statements

 

This standard amended in May 2011, and supersedes IAS 27 (2008).  The scope of this standard is restricted from this change only separate financial statements, as the concept related to the definition of control and consolidation were removed and included in IFRS 10.  Entities are required to apply amendments in the annual periods beginning on or after January 1, 2013, and early adoption is permitted in conjunction with IFRS 10, IFRS 11 and IFRS 12 and the amendment to IAS 28.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

12



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

3.                          New Accounting Pronouncements, continued:

 

IAS 28 Investments in Associates and Joint Venture

 

The objective of IAS 28 (as amended in May 2011) is to prescribe the accounting for investments in associates and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.  Entities are required to apply amendments in the annual periods beginning on or after January 1, 2013, and early adoption is permitted in conjunction with IFRS 10, IFRS 11 and IFRS 12 and the amendment to IAS 27.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IAS 32 Financial Instruments: Presentation

 

The amendments, issued in December 2011, address inconsistencies in current practice when applying the offsetting criteria IAS 32.  The amendments are effective for annual periods beginning on or after January 1, 2014 and allow adoption prior to that date.   To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IFRS 1 First-time Adoption of International Financial Reporting Standards

 

In March, 2012, IASB issued amendments to IFRS 1, dealing with loans received from governments at a below market rate of interest, give first-time adopters of IFRSs relief from full retrospective application of IFRSs when accounting for these loans on transition.  The amendments are mandatory for annual periods beginning on or after January 1, 2013.  Earlier application is permitted.   Banco de Chile and its subsidiaries are evaluating that the adoption of this standard will have not impact on its consolidated financial statements.

 

IFRS 7 Financial Instruments: Disclosures

 

In December 2011, amended the required disclosures to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognized financial assets and recognized financial liabilities, on the entity’s financial position.  An entity shall apply those amendments for annual periods beginning on or after January 1, 2013.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IFRS 9 Financial Instruments: Financial liabilities

 

On October 28, 2010, IASB published the requirements for classifying and measuring financial liabilities were added to IFRS 9.  Most of the added requirements were carried forward unchanged from IAS 39.  However, the requirements related to the fair value option for financial liabilities were changed to address the issue of own credit risk in response to consistent feedback from users of financial statements and others that the effects of changes in a liability’s credit risk ought not to affect profit or loss unless the liability is held for trading.

 

The mandatory effective date to annual periods beginning on or after January 1, 2015.

 

13



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

3.                          New Accounting Pronouncements, continued:

 

IFRS 9 Financial Instruments: Recognition and Measurement

 

In November 2009, the IASB issued IFRS 9, “Financial Instruments,” the first step in its project to replace IAS 39, “Financial Instruments: Recognition and Measurement”.  IFRS 9 introduces new requirements for classifying and measuring financial assets that are in the scope of the application of IAS 39.  This new regulation requires that all financial assets be classified in function of the entity’s business model for the management of financial assets and of the characteristics of the contractual cash flows of financial assets.  A financial asset shall be measured at amortized cost if two criteria are fulfilled: (a) the objective of the business model is to maintain a financial asset to receive contractual cash flows, and (b) contractual cash flows represent principal and interest payments.  Should a financial asset not comply with the aforementioned conditions, it will be measured at fair value.  In addition, this standard allows a financial asset that fulfills the criteria to be valued at amortized cost to be designated at fair value with changes in income under the fair value option, as long as this significantly reduces or eliminates an accounting asymmetry.  Likewise, IFRS 9 eliminates the requirement of separating embedded derivatives from the host financial assets.  Therefore, it requires that a hybrid contract be classified entirely in amortized cost or fair value.

 

IFRS 9 is effective for annual periods commencing as of January 1, 2015, and allows adoption prior to that date.  IFRS 9 must be applied retroactively, however if it is adopted before January 1, 2012, there is no need to reformulate comparative periods.

 

Banco de Chile and its subsidiaries are assessing the possible impact of adoption of these changes on the financial statements, however, that impact will depend on the assets maintained by the institution as of the adoption date.  It is not practicable to quantify the effect on the issuance of these financial statements.  To date, neither of these regulations has been approved by the Superintendency of Banks, event that is required for their application.

 

14



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

3.                           New Accounting Pronouncements, continued:

 

IFRS 10 Consolidated Financial Statement

 

In May 2011 the IASB issued IFRS 10 establishes a new definition of control applies to all entities including “special purpose entities” or “structured entities” as they are now referred to in the new standards.  The changes introduced by IFRS 10 will require management to exercise significant judgment to determine which entities are controlled, and therefore are required to be consolidated by a parent.

 

These new standard is effective for annual periods beginning on or after January 1, 2013.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IFRS 11 Joint Arrangements

 

In May 2011 the IASB issued IFRS 11 replaces IAS 31 Interest in Joint Ventures and SIC-13 Jointly-Controlled Entities- Non-monetary Contributions by Ventures.

 

IFRS 11 eliminated the option to record the value of investment in a joint venture using proportionate consolidation or recognize its assets and liabilities its relative shares of those items, if any.  The new standards require to use the equity method.

 

These new standard is effective for annual periods beginning on or after January 1, 2013.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IFRS 12 Disclosure of Interests in Other Entities

 

On May 12, 2011 the IASB issued IFRS 12 which replaces the requirements previously included in IAS 27, IAS 31 and IAS 28. This new standard is aimed at concentrating on a single regulatory body disclosure of subsidiaries, joint agreements, associates and structured entities.  The new disclosures will help users of its financial statement evaluate the nature and risks associated with interests in other entities and the effects of those interests on its financial statements.

 

These new standard is effective for annual periods beginning on or after January 1, 2013.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

IFRS 13 Fair Value Measurement

 

In May 2011, the IASB issued IFRS 13 Fair Value Measurement.  This new standard establishes a new definition of Fair Value that converges with the generally accepted accounting principles in United States (US GAAP).  This new regulation does not change when an entity must or may use fair value, but changes the way how to measure the fair value of financial assets and liabilities and non-financial.

 

These new standard is effective for annual periods beginning on or after January 1, 2013.  To date, Banco de Chile and its subsidiaries are evaluating the possible impact that the adoption of this standard will have on its consolidated financial statements.

 

15



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

4.                           Changes in Accounting Policies and Disclosures:

 

During the period ended March 31, 2012, have not occurred significant accounting changes that affect the presentation of consolidated financial statements.

 

5.                           Relevant Events:

 

a.                   In an ordinary meeting held on January 26, 2012, our board of directors decided to call an ordinary shareholders meeting to be held on March 22, 2012 with the objective of proposing, among other matters, the increase the Banks capital through the capitalization of 30% of the Bank’s net income for the fiscal year 2011, by means of the issuance of shares without nominal value, set at the value of $67.48 per share and distributed among shareholders, without charge, at the rate of 0.018956 new shares per each paid for and subscribed share and to adopt all necessary resolutions subject to the options contemplated in Article 31 of Law N°19,396.

 

In an ordinary meeting held on March 22, 2012, its shareholders’ approved the distribution and payment of dividend No.200, in the amount of CLP$2.984740 per Banco de Chile common share, which represents 70% of the Bank’s net income for year 2011.

 

b.                  On February 16, 2012 and pursuant to Article 116 of Law No.18,045, Bank of Chile in his capacity as representative of the bondholders Series A, issued by Compañía Sud Americana de Vapores S.A., inform you as an essential information, that because this has occurred the configuration of the disability cause contemplated in the first paragraph of Article 116 of Law No.18,045, that is, being the representative of the bondholders related to the issuer, Bank of Chile will refrain from further actions as such and will renounce as representative of the bondholders of such issue, for which purpose will proceed to quote in the shortest possible time to a bondholders meeting, to announce the renounce of Bank of Chile as representative and to propose to the assembly the appointment of a new representative.

 

The said bond issue is in the public deed dated August 29, 2001, executed in Santiago on behalf of the Public Notary Mr. René Benavente Cash, together with all the amendments and entered in the Registry of Securities of the Chilean Superintendency of Securities and Insurance under No.274.

 

c.                   On March 27, 2012, the Central Bank of Chile communicated to Banco de Chile that in the Extraordinary Session, No.1666E, held today, the Board of the Central Bank of Chile resolved to request its corresponding surplus, from the fiscal year ended on the 31st of December 2011, including the proportional part of the agreed upon capitalization profits, be paid in cash currency.

 

16



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

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 70,000UF, 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 70,000UF, 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:

 

Entity

 

·  Banchile Trade Services Limited

·  Banchile Administradora General de Fondos S.A.

·  Banchile Asesoría Financiera S.A.

·  Banchile Corredores de Seguros Ltda.

·  Banchile Factoring S.A.

·  Banchile Corredores de Bolsa S.A.

·  Banchile Securitizadora S.A.

·  Socofin S.A.

·  Promarket S.A.

 

17



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

6.                           Segment Reporting, continued:

 

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 as those described in “Summary of Significant Accounting Principles”.   The Bank obtains the majority of its income from:  interest, revaluations and fees, discounted the credit cost and expenses. Management is mainly based on these concepts in its evaluation of segment performance and decision-making regarding goals, allocation of resources for each unit individually.  Although the results of the segments reconcile with those of the Bank at total level, it is not thus necessarily concerning the different concepts, since the management is measured and controls 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, stemming from the difference between the effective customer rate and the related Bank’s fund transfer price in terms of maturity, re-pricing and currency.

 

·                                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 a particular customer or third party that exceed 10% or more of its total income during the three-month period ended March 31, 2012 and 2011.

 

Transfer pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

 

Taxes are managed at a corporate level and are not allocated to business segments.

 

In order to be comparable, the figures have been adjusted for March 2011, following the same criteria used today.  These changes are detailed as follows:

 

1.                             The distribution of capital and income to operating segments. Under the new criteria, the assignation of capital considers risk-weighted assets and the amounts provided by treasury.

 

2.                             Income from maturity mismatches and currency (excluding those related to trading instruments and available for sale) have been allocated to business segments taking into account the volume of loans and deposits balances managed by each business.

 

18



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

6.                            Segment Reporting, continued:

 

The following table presents the income for the periods ended March 31, 2012 and 2011 for each of the segments defined above:

 

 

 

Retail

 

Wholesale

 

Treasury

 

Subsidiaries

 

Subtotal

 

Adjustment (*)

 

Total

 

 

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

March

 

 

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

 

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

MCh$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

163,398

 

141,455

 

66,135

 

49,014

 

10,337

 

8,473

 

1,114

 

2,274

 

240,984

 

201,216

 

3,371

 

747

 

244,355

 

201,963

 

Net fees and commissions income

 

42,718

 

41,192

 

10,427

 

9,144

 

(131

)

(97

)

24,447

 

30,526

 

77,461

 

80,765

 

(2,195

)

(2,750

)

75,266

 

78,015

 

Other operating income

 

5,700

 

5,542

 

7,144

 

13,647

 

1,858

 

579

 

7,423

 

4,852

 

22,125

 

24,620

 

(4,026

)

(1,163

)

18,099

 

23,457

 

Total operating revenue

 

211,816

 

188,189

 

83,706

 

71,805

 

12,064

 

8,955

 

32,984

 

37,652

 

340,570

 

306,601

 

(2,850

)

(3,166

)

337,720

 

303,435

 

Provisions for loan losses

 

(46,935

)

(17,708

)

(441

)

(8,940

)

374

 

 

52

 

528

 

(46,950

)

(26,120

)

 

 

(46,950

)

(26,120

)

Depreciation and amortization

 

(5,327

)

(5,258

)

(1,896

)

(1,534

)

(132

)

(579

)

(365

)

(366

)

(7,720

)

(7,737

)

 

 

(7,720

)

(7,737

)

Other operating expenses

 

(99,003

)

(86,693

)

(29,254

)

(27,450

)

(1,379

)

(1,726

)

(20,844

)

(20,963

)

(150,480

)

(136,832

)

2,850

 

3,166

 

(147,630

)

(133,666

)

Income attributable to associates

 

385

 

508

 

177

 

160

 

13

 

 

15

 

135

 

590

 

803

 

 

 

590

 

803

 

Income before income taxes

 

60,936

 

79,038

 

52,292

 

34,041

 

10,940

 

6,650

 

11,842

 

16,986

 

136,010

 

136,715

 

 

 

136,010

 

136,715

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,849

)

(19,830

)

Income after income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121,161

 

116,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

8,861,180

 

8,396,338

 

9,388,447

 

7,305,450

 

3,112,230

 

2,945,980

 

1,147,974

 

1,103,372

 

22,509,831

 

19,751,140

 

(668,781

)

(470,072

)

21,841,050

 

19,281,068

 

Current and deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

114,591

 

118,558

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,955,641

 

19,399,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

6,639,249

 

5,737,959

 

8,865,354

 

8,184,237

 

4,360,228

 

3,586,313

 

961,840

 

920,597

 

20,826,671

 

18,429,106

 

(668,781

)

(470,072

)

20,157,890

 

17,959,034

 

Current and deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,164

 

29,077

 

Total liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,189,054

 

17,988,111

 

 


(*)  This column corresponds to the elimination adjustment to conform the consolidated financial position.

 

19



Table of Contents

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

 


 

7.                            Cash and Cash Equivalents:

 

(a)                        Cash and cash equivalents and their reconciliation to the statement of cash flows at each period-end are detailed as follows:

 

 

 

March
2012

 

December
2011

 

March 
2011

 

 

 

MCh$

 

MCh$

 

MCh$

 

Cash and due from banks:

 

 

 

 

 

 

 

Cash

 

325,820

 

346,169

 

302,869

 

Current account with the Chilean Central Bank

 

514,809

 

139,328

 

119,035

 

Deposits in other domestic banks

 

94,723

 

106,656

 

119,623

 

Deposits abroad

 

60,671

 

288,993

 

377,692

 

Subtotal - Cash and due from banks

 

996,023

 

881,146

 

919,219