o |
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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for the fiscal year ended December 31, 2011
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
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Name of each exchange on which registered
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American Depositary Shares (“ADS”), each representing the right to receive 1,039 Shares of Common Stock without par value
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New York Stock Exchange
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Shares of Common Stock, without par value*
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New York Stock Exchange
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*
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Santander-Chile’s shares of common stock are not listed for trading, but only in connection with the registration of the American Depositary Shares pursuant to the requirements of the New York Stock Exchange.
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o U.S. GAAP | x International Financial Reporting Standards as issued by the International Accounting Standards Board | o Other |
1
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2
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3
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6
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6
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6
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6
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24
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41
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42
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116
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130
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136
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137
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138
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156
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170
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171
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171
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171
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171
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174
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174
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174
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175
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175
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175
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175
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175
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177
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177
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177
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177
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177
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·
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asset growth and alternative sources of funding
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growth of our fee-based business
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financing plans
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impact of competition
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impact of regulation
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exposure to market risks including:
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interest rate risk
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foreign exchange risk
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equity price risk
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projected capital expenditures
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liquidity
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trends affecting:
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our financial condition
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our results of operation
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changes in capital markets in general that may affect policies or attitudes towards lending to Chile or Chilean companies
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changes in economic conditions
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the monetary and interest rate policies of the Banco Central de Chile (the “Central Bank”)
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inflation
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deflation
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unemployment
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increases in defaults by our customers and in impairment losses
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decreases in deposits
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customer loss or revenue loss
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unanticipated turbulence in interest rates
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movements in foreign exchange rates
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movements in equity prices or other rates or prices
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changes in Chilean and foreign laws and regulations
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changes in taxes
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·
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competition, changes in competition and pricing environments
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our inability to hedge certain risks economically
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the adequacy of loss allowances
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technological changes
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changes in consumer spending and saving habits
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increased costs
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unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms
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changes in, or failure to comply with, banking regulations
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our ability to successfully market and sell additional services to our existing customers
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disruptions in client service
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natural disasters
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implementation of new technologies
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an inaccurate or ineffective client segmentation model
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As of December 31,
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||||||||||||||||||||
2011
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2011
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2010
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2009
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2008
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||||||||||||||||
In US$
thousands(1) |
In Ch$ millions(2)
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|||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME DATA (IFRS)
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||||||||||||||||||||
Net interest income
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1,868,550 | 972,300 | 939,719 | 856,516 | 892,066 | |||||||||||||||
Provision for loan losses
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(607,547 | ) | (316,137 | ) | (253,915 | ) | (333,145 | ) | (287,983 | ) | ||||||||||
Net fee and commission income
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533,940 | 277,836 | 263,582 | 254,130 | 243,129 | |||||||||||||||
Operating costs(3)
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(962,852 | ) | (501,020 | ) | (451,936 | ) | (407,894 | ) | (428,168 | ) | ||||||||||
Other income, net(4)
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97,777 | 50,878 | 95,365 | 155,927 | 61,665 | |||||||||||||||
Income before tax
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929,868 | 483,857 | 592,815 | 525,534 | 480,709 | |||||||||||||||
Income tax expense
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(148,348 | ) | (77,193 | ) | (85,343 | ) | (88,924 | ) | (59,742 | ) | ||||||||||
Net income for the period
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781,520 | 406,664 | 507,472 | 436,610 | 420,967 | |||||||||||||||
Net income attributable to:
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||||||||||||||||||||
Bank shareholders
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772,044 | 401,733 | 505,393 | 431,557 | 413,370 | |||||||||||||||
Non-controlling interests
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9,476 | 4,931 | 2,079 | 5,053 | 7,597 | |||||||||||||||
Net income attributable to Bank shareholders per share
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0.004 | 2.13 | 2.68 | 2.29 | 2.19 | |||||||||||||||
Net income attributable to Bank shareholders per ADS(5)
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4.26 | 2,215 | 2,786 | 2,379 | 2,279 | |||||||||||||||
Weighted-average shares outstanding (in millions)
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188,446.13 | 188,466.13 | 188,446.13 | 188,446.13 | ||||||||||||||||
Weighted-average ADS outstanding (in millions)
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181.373 | 181.373 | 181.373 | 181.373 | ||||||||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION DATA (IFRS)
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Cash and deposits in banks
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5,368,888 | 2,793,701 | 1,762,198 | 2,043,458 | 855,411 | |||||||||||||||
Financial investments (6)
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4,005,001 | 2,084,002 | 2,024,635 | 2,642,649 | 2,746,666 | |||||||||||||||
Loans before allowance from loan losses
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33,505,875 | 17,434,782 | 15,727,282 | 13,751,276 | 14,681,088 | |||||||||||||||
Loan loss allowance
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(938,730 | ) | (488,468 | ) | (425,447 | ) | (349,527 | ) | (274,240 | ) | ||||||||||
Financial derivative contracts (assets)
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3,078,497 | 1,601,896 | 1,624,378 | 1,393,878 | 1,846,509 |
As of December 31,
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2011
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2011
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2010
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2009
|
2008
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In US$
thousands(1) |
In Ch$ millions(2)
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Other assets (7)
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2,388,931 | 1,243,080 | 1,377,668 | 1,291,141 | 1,229,073 | |||||||||||||||
Total assets
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47,408,462 | 24,668,993 | 22,090,714 | 20,772,875 | 21,084,507 | |||||||||||||||
Deposits (8)
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25,626,845 | 13,334,929 | 11,495,191 | 10,708,791 | 12,704,428 | |||||||||||||||
Other interest bearing liabilities (9)
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13,960,432 | 7,264,311 | 6,235,959 | 6,232,982 | 4,769,980 | |||||||||||||||
Financial derivative contracts (liabilities)
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2,483,717 | 1,292,402 | 1,643,979 | 1,348,906 | 1,469,724 | |||||||||||||||
Total equity (10)
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4,025,210 | 2,094,518 | 1,937,977 | 1,689,903 | 1,517,649 | |||||||||||||||
Equity attributable to Bank shareholders (11)
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3,960,252 | 2,060,717 | 1,906,168 | 1,660,104 | 1,491,770 |
As of December 31,
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2011
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2010
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2009
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2008
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CONSOLIDATED RATIOS (IFRS)
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Profitability and performance:
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Net interest margin(11)
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4.8 | % | 5.4 | % | 5.3 | % | 5.7 | % | ||||||||
Return on average total assets(12)
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1.7 | % | 2.4 | % | 2.2 | % | 2.3 | % | ||||||||
Return on average equity(13)
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20.4 | % | 29.0 | % | 27.3 | % | 32.4 | % | ||||||||
Capital:
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Average equity as a percentage of average total assets(14)
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8.3 | % | 8.4 | % | 8.0 | % | 7.0 | % | ||||||||
Total liabilities as a multiple of equity(15)
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10.8 | 10.4 | 11.3 | 12.9 | ||||||||||||
Credit Quality:
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Non-performing loans as a percentage of total loans(16)
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2.93 | % | 2.65 | % | 2.97 | % | 2.61 | % | ||||||||
Allowance for loan losses as percentage of total loans
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2.80 | % | 2.71 | % | 2.54 | % | 1.87 | % | ||||||||
Operating Ratios:
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Operating expenses /operating revenue(17)
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41.5 | % | 37.0 | % | 34.2 | % | 37.7 | % | ||||||||
Operating expenses /average total assets
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2.34 | % | 2.2 | % | 2.2 | % | 2.5 | % | ||||||||
OTHER DATA
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CPI Inflation Rate (18)
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4.4 | % | 3.0 | % | (1.4 | )% | 7.1 | % | ||||||||
Revaluation (devaluation) rate (Ch$/US$) at period end(18)
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11.3 | % | (7.5 | )% | (19.5 | )% | 26.9 | % | ||||||||
Number of employees at period end
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11,566 | 11,001 | 11,118 | 11,592 | ||||||||||||
Number of branches and offices at period end
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499 | 504 | 498 | 505 |
(1)
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Amounts stated in U.S. dollars at and for the year ended December 31, 2011, have been translated from Chilean pesos at the interbank market exchange rate of Ch$520.35 = US$1.00 as of December 31, 2011. See “Item 3: A. Selected Financial Data—Exchange Rates” for more information on the observed exchange rate.
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(2)
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Except per share data, percentages and ratios, share numbers, employee numbers and branch numbers.
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(3)
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Operating costs is equal to the sum of the line items on personnel salaries and expenses, administrative expenses, depreciation and amortization and impairment within our Consolidated Statements of Income.
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(4)
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Other income, net is the sum of the line items on other operating income, net income from financial operations (net trading income), foreign exchange transactions, income from investment in other companies less other operating expense within our Consolidated Statements of Income.
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(5)
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1 ADS = 1,039 shares of common stock.
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(6)
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Includes the line items on trading investments, investments under resale agreements, investments available for sale and investments held to maturity within our Consolidated Statements of Financial Position.
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(7)
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Includes the line items on cash items in process of collection, investments in other companies, intangible assets, property, plant and equipment, current taxes, deferred taxes and other assets within our Consolidated Statements of Financial Position.
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(8)
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Deposits is equal to the sum of the line items on deposits and other demand liabilities and time deposits and other time liabilities within our Consolidated Statements of Income.
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(9)
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Other interest bearing liabilities is equal to the sum of the line items on obligations under repurchase agreements, interbank borrowings, issued debt instruments and other financial liabilities within our Consolidated Statements of Income.
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(10)
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Equity includes equity attributable to Bank shareholders plus non-controlling interests less allowance for mandatory dividends. Provision for mandatory dividends is made pursuant to Article 79 of the Corporations Act, in accordance with the Bank’s internal dividend policy, pursuant to which at least 30% of net income for the period is distributed, except in the case of a contrary resolution adopted at the respective shareholders’ meeting by the unanimous vote of the outstanding shares.
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(11)
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Net interest income divided by average interest earning assets (as presented in “Item 5: F. Selected Statistical Information”).
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(12)
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Net income for the period divided by average total assets (as presented in “Item 5: F. Selected Statistical Information”).
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(13)
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Net income for the period divided by average equity (as presented in “Item 5: F. Selected Statistical Information”).
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(14)
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This ratio is calculated using total equity including non-controlling interest.
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(15)
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Total liabilities divided by equity.
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(16)
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Non-performing loans include the aggregate unpaid principal and accrued but unpaid interest on all loans with at least one installment over 90 days overdue.
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(17)
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The efficiency ratio is equal to operating expenses over operating income. Operating expenses includes personnel salaries and expenses, administrative expenses, depreciation and amortization, impairment and other operating expenses. Operating income includes net interest income, net fee and commission income, net income from financial operations (net trading income), foreign exchange profit (loss), net and other operating income.
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(18)
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Based on information published by the Central Bank.
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Daily Observed Exchange Rate Ch$ Per US$(1)
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Year
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Low(2)
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High(2)
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Average(3)
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Period End(4)
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||||||||||||
2007
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493.14 | 548.67 | 522.69 | 495.82 | ||||||||||||
2008
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431.22 | 676.75 | 521.79 | 629.11 | ||||||||||||
2009
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491.09 | 643.87 | 559.67 | 506.43 | ||||||||||||
2010
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468.37 | 549.17 | 510.38 | 468.37 | ||||||||||||
2011
|
455.91 | 533.74 | 483.36 | 521.46 | ||||||||||||
Month
|
||||||||||||||||
October 2011
|
492.04 | 533.74 | 511.74 | 492.04 | ||||||||||||
November 2011
|
490.29 | 526.83 | 508.44 | 524.25 | ||||||||||||
December 2011
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508.67 | 522.62 | 517.17 | 521.46 | ||||||||||||
January 2012
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485.35 | 519.20 | 501.34 | 488.99 | ||||||||||||
February 2012
|
475.29 | 488.75 | 481.49 | 477.41 | ||||||||||||
March 2012
|
476.27 | 491.57 | 485.40 | 489.76 | ||||||||||||
April 2012 (until April 30, 2012)
|
482.17 |
489.64
|
486.00
|
483.41
|
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(1)
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Nominal figures.
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(2)
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Exchange rates are the actual low and high, on a day-by-day basis for each period.
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(3)
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The average of monthly average rates during the year.
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(4)
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As reported by the Central Bank on the first business day of the following period.
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Year
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Dividend
Ch$ mn(1)
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Per share
Ch$/share(2)
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Per ADR
Ch$/ADR(3)
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% over
earnings(4)
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% over
earnings(5)
|
|||||||||||||||
2009
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213,295 | 1.13 | 1,176.00 | 65 | 52 | |||||||||||||||
2010
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258,752 | 1.37 | 1,426.63 | 60 | 60 | |||||||||||||||
2011
|
286,294 | 1.52 | 1,578.48 | 60 | 57 | |||||||||||||||
2012(6)
|
261,050 | 1.39 | 1,439.08 | 60 | 65 |
Year
|
90-day note at Period end (%)
|
|||
2007
|
6.15 | |||
2008
|
7.86 | |||
2009
|
0.48 | |||
2010
|
3.40 | |||
2011
|
5.11 | (1) |
|
1)
|
As of November 2011. The Central Bank did not report a 90-day note rate for December 2011.
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Year
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Exchange rate (Ch$) Period end
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Appreciation (Devaluation) (%)
|
||||||
2007
|
495.82 | (7.2 | ) | |||||
2008
|
629.11 | 26.9 | ||||||
2009
|
506.43 | (19.5 | ) | |||||
2010
|
468.37 | (7.5 | ) | |||||
2011
|
521.46 | 11.4 | ||||||
April 30, 2012
|
483.41
|
(7.3
|
) |
Shareholder
|
Number of Shares
|
Percentage
|
||||||
Santander Chile Holding
|
66,822,519,695 | 35.46 | ||||||
Teatinos Siglo XXI Inversiones Ltda.
|
59,770,481,573 | 31.72 |
As of December 31, 2011 (Ch$ million)
|
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Loans and accounts receivable from customers (1)
|
Net interest income
|
Net fee income
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Financial transactions, net (2)
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Net loan loss allowances (3)
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Operating expenses (4)
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Net segment contribution (5)
|
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SEGMENTS
|
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Individuals
|
9,289,345 | 570,293 | 187,176 | 9,095 | (248,137 | ) | (322,273 | ) | 196,154 | |||||||||||||||||||
Santander Banefe
|
804,852 | 117,154 | 37,206 | 275 | (62,252 | ) | (70,719 | ) | 21,664 | |||||||||||||||||||
Commercial Banking
|
8,484,493 | 453,139 | 149,970 | 8,820 | (185,885 | ) | (251,554 | ) | 174,490 | |||||||||||||||||||
SMEs
|
2,560,736 | 207,008 | 38,274 | 9,577 | (65,028 | ) | (74,962 | ) | 114,869 | |||||||||||||||||||
Institutional
|
355,199 | 26,856 | 1,831 | 859 | 503 | (11,329 | ) | 18,720 | ||||||||||||||||||||
Companies
|
3,650,709 | 140,818 | 24,310 | 13,427 | (11,592 | ) | (40,680 | ) | 126,283 | |||||||||||||||||||
Companies
|
1,583,895 | 65,499 | 12,785 | 7,134 | (10,080 | ) | (22,698 | ) | 52,640 | |||||||||||||||||||
Real estate
|
596,367 | 18,852 | 2,931 | 624 | (300 | ) | (4,486 | ) | 17,621 | |||||||||||||||||||
Large Corporations
|
1,470,447 | 56,467 | 8,594 | 5,669 | (1,212 | ) | (13,496 | ) | 56,022 | |||||||||||||||||||
Commercial banking
|
15,855,989 | 944,975 | 251,591 | 32,958 | (324,254 | ) | (449,244 | ) | 456,026 | |||||||||||||||||||
Global Banking & Markets
|
1,494,752 | 48,942 | 31,908 | 68,530 | 7,614 | (35,302 | ) | 121,692 | ||||||||||||||||||||
Corporate
|
1,479,838 | 64,845 | 30,745 | 1,368 | 7,614 | (13,790 | ) | 90,782 | ||||||||||||||||||||
Treasury (6)
|
14,914 | (15,903 | ) | 1,163 | 67,162 | - | (21,512 | ) | 30,910 | |||||||||||||||||||
Other (7)
|
84,041 | (21,617 | ) | (5,663 | ) | (7,291 | ) | 503 | (16,474 | ) | (50,542 | ) | ||||||||||||||||
TOTAL
|
17,434,782 | 972,300 | 277,836 | 94,197 | (316,137 | ) | (501,020 | ) | 527,176 | |||||||||||||||||||
Other operating income
|
18,749 | |||||||||||||||||||||||||||
Other operating expenses
|
(64,208 | ) | ||||||||||||||||||||||||||
Income from investments in other companies
|
2,140 | |||||||||||||||||||||||||||
Income tax
|
(77,193 | ) | ||||||||||||||||||||||||||
Consolidated income for the year
|
406,664 |
(1)
|
Loans and accounts receivables from customers plus interbank loans, gross of loan loss allowances.
|
(2)
|
Includes net gains from trading, net mark-to-market gains and foreign exchange transactions.
|
(3)
|
Includes gross provisions for loan losses, net of releases on recoveries.
|
(4)
|
Equal to the sum of personnel expenses, administrative expenses, amortizations and depreciations and deterioration.
|
(5)
|
Equal to the sum of the net interest revenue, net fee income and net financial transactions, minus net provision for loan losses and operating expenses.
|
(6)
|
Includes the Treasury’s client business and trading business.
|
(7)
|
Includes Financial Management and the contribution of non-segmented items such as interbank loans, the cost of our capital and fixed assets. Net interest income and net financial transactions included in Other are mainly comprised of the results from the Financial Management Division (Gestión Financiera). The area of Financial Management carries out the function of managing the structural interest rate risk, the structural position in inflation indexed assets and liabilities, shareholder’s equity and liquidity. The aim of Financial Management is to inject stability and recurrence into the net income of commercial activities and to assure we comply with internal and regulatory limits regarding liquidity, regulatory capital, reserve requirements and market risk.
|
Percentage Owned
|
||||||||||||||||||||||||||||||||||||
Subsidiary
|
As of December 2011
|
As of December 2010
|
As of December 2009
|
|||||||||||||||||||||||||||||||||
Direct
|
Indirect
|
Total
|
Direct
|
Indirect
|
Total
|
Direct
|
Indirect
|
Total
|
||||||||||||||||||||||||||||
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
||||||||||||||||||||||||||||
Santander S.A. Corredores de Bolsa
|
50.59 | 0.41 | 51.00 | 50.59 | 0.41 | 51.00 | 50.59 | 0.41 | 51.00 | |||||||||||||||||||||||||||
Santander Corredora de Seguros Ltda.
|
99.75 | 0.01 | 99.76 | 99.75 | 0.01 | 99.76 | 99.75 | 0.01 | 99.76 | |||||||||||||||||||||||||||
Santander Asset Management S.A. Administradora General de Fondos
|
99.96 | 0.02 | 99.98 | 99.96 | 0.02 | 99.98 | 99.96 | 0.02 | 99.98 | |||||||||||||||||||||||||||
Santander Agente de Valores Ltda.
|
99.03 | - | 99.03 | 99.03 | – | 99.03 | 99.03 | – | 99.03 | |||||||||||||||||||||||||||
Santander S.A. Sociedad Securitizadora
|
99.64 | - | 99.64 | 99.64 | – | 99.64 | 99.64 | – | 99.64 | |||||||||||||||||||||||||||
Santander Servicios de Recaudación y Pagos Limitada
|
99.90 | 0.10 | 100.00 | 99.90 | 0.10 | 100.00 | 99.90 | 0.10 | 100.00 |
|
·
|
Santander Gestión de Recaudación y Cobranza Ltda. (collection services)
|
|
·
|
Multinegocios S.A. (management of sales force)
|
|
·
|
Servicios Administrativos y Financieros Ltda. (management of sales force)
|
|
·
|
Fiscalex Ltda. (collection services)
|
|
·
|
Multiservicios de Negocios Ltda. (call center)
|
|
·
|
Bansa Santander S.A. (management of repossessed assets and leasing of properties)
|
As of December 31, 2011,
unless otherwise noted
|
|||
Market Share
|
Rank
|
||
Commercial loans
|
17.1%
|
2
|
|
Consumer loans
|
25.6%
|
1
|
|
Residential mortgage loans
|
23.3%
|
1
|
|
Total loans(1)
|
19.7%
|
2
|
|
Deposits
|
17.4%
|
3
|
|
Mutual funds (assets managed)(2)
|
16.7%
|
2
|
|
Credit card accounts
|
25.8%
|
1
|
|
Checking accounts(3)
|
24.9%
|
1
|
|
Branches(4)
|
18.7%
|
2
|
|
(1)
|
Excludes interbank loans.
|
|
(2)
|
Source: Asociación de Fondos Mutuos de Chile.
|
|
(3)
|
According to latest data available as of October 2011.
|
|
(4)
|
Excludes special–service payment centers.
|
As of December 31, 2011
|
||||||||||||
Loans (1)
|
Ch$ million
|
US$ million
|
Market
Share
|
|||||||||
Santander Chile
|
17,347,094 | 33,337 | 19.7 | % | ||||||||
Banco de Chile
|
17,377,793 | 33,396 | 19.8 | % | ||||||||
Banco del Estado
|
12,587,222 | 24,190 | 14.3 | % | ||||||||
Banco de Crédito e Inversiones
|
11,377,851 | 21,866 | 12.9 | % | ||||||||
Corpbanca
|
6,814,445 | 13,096 | 7.7 | % | ||||||||
BBVA, Chile
|
6,139,803 | 11,799 | 7.0 | % | ||||||||
Others
|
16,302,292 | 31,329 | 18.6 | % | ||||||||
Chilean financial system
|
87,946,500 | 169,013 | 100.0 | % |
(1)
|
Excludes interbank loans.
|
As of December 31, 2011
|
||||||||||||
Deposits
|
Ch$ million
|
US$ million
|
Market Share
|
|||||||||
Santander Chile
|
13,334,929 | 25,627 | 17.4 | % | ||||||||
Banco del Estado
|
14,206,667 | 27,302 | 18.6 | % | ||||||||
Banco de Chile
|
14,177,750 | 27,247 | 18.5 | % | ||||||||
Banco de Crédito e Inversiones
|
9,921,534 | 19,067 | 13.0 | % | ||||||||
BBVA, Chile
|
4,956,864 | 9,526 | 6.5 | % | ||||||||
Corpbanca
|
5,507,098 | 10,583 | 7.2 | % | ||||||||
Others
|
14,439,410 | 27,749 | 18.8 | % | ||||||||
Chilean financial system
|
76,544,252 | 147,101 | 100.0 | % |
As of December 31, 2011
|
||||||||||||
Total Equity
|
Ch$ million
|
US$ million
|
Market Share
|
|||||||||
Santander Chile
|
2,035,023 | 3,911 | 20.7 | % | ||||||||
Banco de Chile
|
1,739,175 | 3,342 | 17.7 | % | ||||||||
Banco del Estado
|
1,028,153 | 1,976 | 10.5 | % | ||||||||
Banco de Crédito e Inversiones
|
1,222,049 | 2,349 | 12.5 | % | ||||||||
Corpbanca
|
729,212 | 1,401 | 7.4 | % | ||||||||
BBVA, Chile
|
542,648 | 1,043 | 5.5 | % | ||||||||
Others
|
2,517,441 | 4,838 | 25.7 | % | ||||||||
Chilean financial system
|
9,813,701 | 18,860 | 100.0 | % |
Efficiency ratio
|
As of
December 31, 2011 |
|
%
|
||
Santander Chile
|
37.4%
|
|
Banco de Chile
|
47.7%
|
|
Banco del Estado
|
60.6%
|
|
Banco de Crédito e Inversiones
|
44.9%
|
|
BBVA, Chile
|
50.3%
|
|
Corpbanca
|
41.2%
|
|
Chilean financial system
|
47.6%
|
As of December 31, 2011
|
||||||||||||
Net income for the period (1)
|
Ch$ million
|
US$ million
|
Market Share
|
|||||||||
Santander Chile
|
435,084 | 836 | 25.6 | % | ||||||||
Banco de Chile
|
428,805 | 824 | 25.3 | % | ||||||||
Banco de Crédito e Inversiones
|
261,269 | 502 | 15.4 | % | ||||||||
Corpbanca
|
122,849 | 236 | 7.2 | % | ||||||||
BBVA, Chile
|
74,343 | 143 | 4.4 | % | ||||||||
Banco del Estado
|
89,655 | 172 | 5.3 | % | ||||||||
Others
|
285,529 | 549 | 16.8 | % | ||||||||
Chilean financial system
|
1,697,534 | 3,262 | 100.0 | % |
(1)
|
Net income before non-controlling interest.
|
Return on equity
as of December 31, 2011
|
BIS Ratio as of
December 31, 2011
|
||
Santander Chile
|
21.6%
|
14.7%
|
|
Banco de Chile
|
24.7%
|
12.9%
|
|
Banco del Estado
|
9.8%
|
12.6%
|
|
Banco de Crédito e Inversiones
|
21.4%
|
13.9%
|
|
BBVA, Chile
|
13.7%
|
11.7%
|
|
Corpbanca
|
16.6%
|
14.5%
|
|
Chilean Financial System
|
17.4%
|
13.9%
|
Non-performing loans / total
loans (1) as of December 31, 2011
|
|
Santander Chile
|
2.95
|
Banco de Chile
|
1.01
|
Banco del Estado
|
4.16
|
Banco de Crédito e Inversiones
|
2.15
|
BBVA, Chile
|
1.88
|
Corpbanca
|
1.57
|
Chilean financial system
|
2.32
|
(1)
|
Non-performing loans divided by total loans excluding interbank loans.
|
|
·
|
the merger of two or more banks;
|
|
·
|
the acquisition of all or a substantial portion of a banks’ assets and liabilities by another bank;
|
|
·
|
the control by the same person, or controlling group, of two or more banks; or
|
|
·
|
a substantial increase in the existing control of a bank by a controlling shareholder of that bank.
|
|
·
|
that the bank or banks maintain regulatory capital higher than 8.0% and up to 14.0% of their risk-weighted assets;
|
|
·
|
that the technical reserve established in Article 65 of the General Banking Law be applicable when deposits exceed one and a half times the resulting bank’s paid-in capital and reserves; or
|
|
·
|
that the margin for interbank loans be reduced to 20.0% of the resulting bank’s regulatory capital.
|
|
·
|
a bank is required to inform the Superintendency of Banks of the identity of any person owning, directly or indirectly, 5.0% or more of such banks’ shares;
|
|
·
|
holders of ADSs must disclose to the Depositary the identity of beneficial owners of ADSs registered under such holders’ names;
|
|
·
|
the Depositary is required to notify the bank as to the identity of beneficial owners of ADSs which such Depositary has registered and the bank, in turn, is required to notify the Superintendency of Banks as to the identity of the beneficial owners of the ADSs representing 5.0% or more of such banks’ shares; and
|
|
·
|
bank shareholders who individually hold 10.0% or more of a bank’s capital stock and who are controlling shareholders must periodically inform the Superintendency of Banks of their financial condition.
|
|
·
|
cash clearance account, which should be deducted from demand deposit for calculating reserve requirement;
|
|
·
|
certain payment orders issued by pension providers; and
|
|
·
|
the amount set aside for “technical reserve” (as described below), which can be deducted from reserve requirement.
|
|
·
|
a bank’s paid-in capital and reserves, excluding capital attributable to subsidiaries and foreign branches or capital básico;
|
|
·
|
its subordinated bonds, valued at their placement price (but decreasing by 20.0% for each year during the period commencing six years prior to maturity), for an amount up to 50.0% of its basic capital; and
|
|
·
|
its voluntary allowances for loan losses for an amount of up to 1.25% of risk weighted-assets.
|
|
·
|
A bank may not extend to any entity or individual (or any one group of related entities), except for another financial institution, directly or indirectly, unsecured credit in an amount that exceeds 10.0% of the bank’s regulatory capital, or in an amount that exceeds 30.0% of its regulatory capital if the excess over 10.0% is secured by certain assets with a value equal to or higher than such excess. These limits were raised from 5.0% and 25.0%, respectively, in 2007 by the Reformas al Mercado de Capitales II (also known as MK2). In the case of financing infrastructure projects built by government concession, the 10.0% ceiling for unsecured credits is raised to 15.0% if secured by a pledge over the concession, or if granted by two or more banks or finance companies which have executed a credit agreement with the builder or holder of the concession;
|
|
·
|
a bank may not extend loans to another financial institution subject to the General Banking Law in an aggregate amount exceeding 30.0% of its regulatory capital;
|
|
·
|
a bank may not directly or indirectly grant a loan whose purpose is to allow an individual or entity to acquire shares of the lender bank;
|
|
·
|
a bank may not lend, directly or indirectly, to a director or any other person who has the power to act on behalf of the bank; and
|
|
·
|
a bank may not grant loans to related parties (including holders of more than 1.0% of its shares) on more favorable terms than those generally offered to non-related parties. Loans granted to related parties are subject to the limitations described in the first bullet point above. In addition, the aggregate amount of loans to related parties may not exceed a bank’s regulatory capital.
|
Rating Agency
|
Short Term
|
Long Term
|
|
Moody’s
|
P2
|
Baa3
|
|
Standard and Poor’s
|
A3
|
BBB-
|
|
Fitch
|
F2
|
BBB-
|
|
Duff & Phelps
|
D2
|
BBB-
|
Rating Agency
|
Short Term
|
Long Term
|
|
Moody’s
|
P2
|
Ba3
|
|
Standard and Poor’s
|
A3
|
BB-
|
|
Fitch
|
F2
|
BB-
|
|
Duff & Phelps
|
D2
|
BB-
|
Rating Agency
|
Short Term
|
Long Term
|
|
Moody’s
|
P1
|
Aa3
|
|
Standard and Poor’s
|
A1+
|
AA-
|
|
Fitch
|
F1+
|
AA-
|
|
Duff & Phelps
|
D1+
|
AA-
|
Main properties as of December 31, 2011
|
Number
|
|||
Central Offices
|
||||
Own
|
7 | |||
Rented
|
5 | |||
Total
|
12 | |||
Branches (1)
|
||||
Own
|
134 | |||
Rented
|
302 | |||
Total
|
436 | |||
Other property (2)
|
||||
Own
|
59 | |||
Rented
|
6 | |||
Total
|
65 |
(1)
|
Some branches are located inside central office buildings and other properties. Including these branches the total number of branches is 499. Special payment centers are included in Other property.
|
(2)
|
Consists mainly of parking lots, mini-branches and property owned by our subsidiaries.
|
Category
|
Brand
|
Application
|
Mainframe
|
IBM
|
Back-end, Core-System Altair, Payment means and foreign trade.
|
Midrange
|
IBM
|
Interconnections between Mainframe and mid-range
|
Midrange
|
SUN/Unix
SUN/UNIX
|
Interconnections applications Credit & debit cards
Treasury, MIS, Work Flow, Accounting
|
Midrange
|
IBM
|
WEB
|
Desktop
|
IBM/HP/Lenovo
|
Platform applications
|
Call Center
|
Avaya
Genesys
Nice
Periphonics
|
Telephone system
Integration Voice/data
Voice recorder
IVR
|
Category
|
Product
|
Origin
|
||
Core-System
|
ALTAMIRA
|
Accenture
|
||
Data base
|
DB2
|
IBM
|
||
Data base
|
Oracle
|
Oracle
|
||
Data base
|
SQL Server
|
Microsoft
|
||
WEB Service
|
Internet Information Server
|
Microsoft
|
||
Message Service
|
MQSeries
|
IBM
|
||
Transformation
|
MQIntegrator
|
IBM
|
|
·
|
The value of “goodwill” and other depreciable intangible assets will be supported by two reports issued by specialists independent from the (i) bank, (ii) the bank’s external auditors, and (iii) each other.
|
|
·
|
For assets acquired before December 31, 2008, “goodwill” will be determined according to the Compendium, and will be amortized according to the original amortization schedule for such assets.
|
|
·
|
Goodwill arising from acquisitions before the date of transition to new Chilean Bank GAAP in January 2009 will be determined based on the previously used accounting criteria.
|
|
·
|
The use of independent experts’ valuations is not mandatory.
|
|
·
|
Beginning with the first full year in which IFRS applies, an entity must discontinue goodwill depreciation and is required to evaluate goodwill for impairment, in compliance with IAS 36.
|
|
·
|
It is possible to (i) choose a retroactive application of IFRS to goodwill generated before the date of the transition to IFRS, or (ii) adopt an optional exemption to record the balance of goodwill at December 31, 2008 as an attributed cost.
|
|
·
|
When a cash flow hedge exists, the fair value movements on the part of the hedging instrument and the hedged item that is effective are recognized in equity as “valuation adjustments”. Any ineffective portion of the fair value movement on the hedging instrument and the hedged item is recognized in the income statement.
|
|
·
|
When a fair value hedge exists, the fair value movements on the hedging instrument and the corresponding fair value movements on the hedged item are recognized in the income statement.
|
|
·
|
When a hedge of net investment in a foreign operation exists, the fair value movements on the part of the hedging instrument and the hedged item that is effective are recognized in equity. Any ineffective portion of the fair value movement on the hedging instrument is recognized in the income statement.
|
|
·
|
UF-denominated assets and liabilities. In 2011, UF inflation was +3.9% compared to +2.5% in 2010 and -2.4% in 2009. The effect of any changes in the nominal peso value of our UF-denominated interest earning assets and interest bearing liabilities is reflected in our results of operations as an increase (or decrease, in the event of deflation) in interest income and expense, respectively. Our net interest income will be positively affected by an inflationary environment to the extent that our average UF-denominated interest earning assets exceed our average UF-denominated interest bearing liabilities. Our net interest income will be negatively affected in a deflationary environment if our average UF-denominated interest earning assets exceed our average UF-denominated interest bearing liabilities. Our net interest income will be negatively affected by inflation in any period in which our average UF-denominated interest bearing liabilities exceed our average UF-denominated interest earning assets. Our average UF-denominated interest earning assets exceeded our average UF-denominated interest bearing liabilities by Ch$3,611,046 million, Ch$3,171,140 million in 2010 and Ch$2,689,614 million in 2009. See “Item 5: F. Selected Statistical Information―Average Balance Sheets, Income Earned from Interest-Earning Assets and Interest Paid on Interest Bearing Liabilities.” In general, the Bank has more UF-denominated financial assets than UF-denominated financial liabilities. In the year-ended December 31, 2011, the interest earned on interest earning assets denominated in UF increased 30.8% compared to 2010 as a result of the larger gap between UF-denominated average interest-earning assets and UF-denominated average interest bearing liabilities and the increase in UF inflation. The interest paid on these liabilities increased 32.8% in 2011 compared to 2010 and reached Ch$388,349 during the year-ended December 31, 2011.
|
|
·
|
Inflation and interest rate hedge. A key component of our asset and liability policy is the management of interest rate risk. The Bank’s assets generally have a longer maturity than our liabilities. As the Bank’s mortgage portfolio grows, the maturity gap tends to rise as these loans, which are contracted in UF, have a longer maturity than the average maturity of our funding base. As most of our long term financial instruments and mortgage loans are contracted in UF and most of our deposits are in nominal pesos, the rise in mortgage lending increases the Bank’s exposure to inflation and to interest rate risk. The size of this gap is limited by internal and regulatory guidelines in order to avoid excessive potential losses due to strong shifts in interest rates (see “Item 11: Quantitative and Qualitative Disclosures About Market Risk”). In order to keep this duration gap below regulatory limits, the Bank issues long term bonds denominated in UF or interest rate swaps. The financial cost of the bonds and the efficient part of these hedges is recorded as net interest income. In 2011, the gain from the swaps taken in order to hedge mainly for inflation and interest rate risk totaled a loss of Ch$58,775 million compared to a loss of Ch$2,008 million in 2010 and a gain of Ch$24,988 million in 2009.
|
As of December 31,
|
% Change
|
% Change
|
||||||||||||||||||
Inflation sensitive income
|
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | |||||||||||||||
(In million of Chilean pesos)
|
||||||||||||||||||||
Interest earned on UF assets(1)
|
703,286 | 537,621 | 224,614 | 30.8 | % | 139.4 | % | |||||||||||||
Interest paid on UF liabilities(1)
|
(388,349 | ) | (292,362 | ) | (67,559 | ) | 32.8 | % | 332.8 | % | ||||||||||
Hedging results
|
(58,775 | ) | (2,008 | ) | 24,988 | 2,827.0 | % | – | % | |||||||||||
Net gain
|
256,162 | 243,251 | 182,043 | 5.3 | % | 33.6 | % |
(1)
|
Excludes results from hedging
|
|
·
|
Peso-denominated assets and liabilities. Interest rates prevailing in Chile during any period primarily reflect the inflation rate during the period and the expectations of future inflation. The sensitivity of our peso-denominated interest earning assets and interest bearing liabilities to changes to such prevailing rates varies. (See “Item 5: C. Operating Results—Interest Rates”). We maintain a substantial amount of non-interest bearing peso-denominated demand deposits. Because such deposits are not sensitive to inflation, any decline in the rate of inflation would adversely affect our net interest margin on inflation indexed assets funded with such deposits, and any increase in the rate of inflation would increase the net interest margin on such assets. (See “Item 11: Quantitative and Qualitative Disclosures About Market Risk”). The ratio of the average of such demand deposits and average shareholder’s equity to average interest-earning assets was 27.2%, 27.9% and 25.0% for the years ended December 31, 2011, 2010 and 2009, respectively.
|
As of December 31, 2011, Ch$ million
|
||||||||||||||||||||
Ch$(1)
|
UF
|
Ch$ linked to US$
|
US$
|
Total
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and deposits
|
1,837,088 | – | – | 956,613 | 2,793,701 | |||||||||||||||
Unsettled transactions
|
219,469 | – | – | 56,985 | 276,454 | |||||||||||||||
Trading investments
|
73,435 | 336,328 | – | – | 409,763 | |||||||||||||||
Investments under agreements to resell
|
12,262 | 666 | – | – | 12,928 | |||||||||||||||
Financial derivative contracts
|
1,601,896 | – | – | – | 1,601,896 | |||||||||||||||
Interbank loans
|
– | – | – | 87,677 | 87,677 | |||||||||||||||
Loans and receivables from customers
|
6,561,443 | 8,729,023 | 52,789 | 1,515,382 | 16,858,637 | |||||||||||||||
Available for sale investments
|
1,568,022 | 81,651 | – | 11,638 | 1,661,311 | |||||||||||||||
Investments held to maturity
|
– | – | – | – | – | |||||||||||||||
Investments in other companies
|
8,728 | – | – | – | 8,728 | |||||||||||||||
Intangible assets
|
80,739 | – | – | – | 80,739 | |||||||||||||||
Property, plant and equipment
|
153,059 | – | – | – | 153,059 | |||||||||||||||
Current taxes
|
37,253 | – | – | – | 37,253 | |||||||||||||||
Deferred taxes
|
136,521 | – | – | – | 136,521 | |||||||||||||||
Other assets(2)
|
301,385 | 89,739 | 9,467 | 149,735 | 550,326 | |||||||||||||||
Total assets
|
12,591,300 | 9,237,407 | 62,256 | 2,778,030 | 24,668,993 | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits and other sight obligations
|
3,806,618 | 179,754 | – | 427,443 | 4,413,815 | |||||||||||||||
Unsettled transactions
|
21,681 | – | – | 67,805 | 89,486 | |||||||||||||||
Investment under agreements to repurchase
|
447,230 | 159 | – | 96,992 | 544,381 | |||||||||||||||
Deposits and other time deposits
|
5,585,988 | 2,140,400 | – | 1,194,726 | 8,921,114 | |||||||||||||||
Financial derivative contracts
|
1,292,402 | – | – | – | 1,292,402 | |||||||||||||||
Interbank borrowings
|
– | 810 | – | 1,919,282 | 1,920,092 | |||||||||||||||
Issued debt instruments
|
254,263 | 2,707,657 | – | 1,661,319 | 4,623,239 | |||||||||||||||
Other financial liabilities
|
156,461 | 13,167 | 5,949 | 1,022 | 176,599 | |||||||||||||||
Current taxes
|
1,498 | – | – | – | 1,498 | |||||||||||||||
Deferred taxes
|
5,315 | – | – | – | 5,315 | |||||||||||||||
Provisions
|
187,557 | – | – | – | 187,557 | |||||||||||||||
Other liabilities(2)
|
94,796 | 29,370 | 2,453 | 272,358 | 398,977 | |||||||||||||||
Total liabilities
|
11,853,809 | 5,071,317 | 8,402 | 5,640,947 | 22,574,475 | |||||||||||||||
Equity
|
||||||||||||||||||||
Attributable to Bank Shareholders
|
||||||||||||||||||||
Capital
|
891,303 | – | – | – | 891,303 | |||||||||||||||
Reserves
|
51,539 | – | – | – | 51,539 | |||||||||||||||
Valuation adjustment
|
2,832 | – | – | – | 2,832 | |||||||||||||||
Retained earnings:
|
1,115,043 | – | – | – | 1,115,043 | |||||||||||||||
Retained earnings of prior periods
|
833,830 | – | – | – | 833,830 | |||||||||||||||
Net income for the period
|
401,733 | – | – | – | 401,733 | |||||||||||||||
Minus: Provision for mandatory dividends
|
(120,520 | ) | – | – | – | (120,520 | ) | |||||||||||||
Non-controlling interest
|
33,801 | – | – | – | 33,801 | |||||||||||||||
Total Equity
|
2,094,518 | – | – | – | 2,094,518 | |||||||||||||||
Total liabilities and equity
|
13,948,327 | 5,071,317 | 8,402 | 5,640,947 | 24,668,993 |
(1)
|
Includes the value of swap instruments and balances of executed transactions which contractually defer the payment of sales transactions or the delivery of foreign currency acquired.
|
(2)
|
Other assets and liabilities include the threshold position from derivative contracts.
|
2011
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
CONSOLIDATED INCOME STATEMENT DATA
|
ThUS$(1)
|
Ch$ million of constant pesos
|
% Change 2011 / 2010
|
% Change 2010 / 2009
|
||||||||||||||||||||
IFRS:
|
||||||||||||||||||||||||
Interest income and expense
|
||||||||||||||||||||||||
Interest income
|
3,399,126 | 1,768,735 | 1,412,983 | 1,207,778 | 25.2 | % | 17.0 | % | ||||||||||||||||
Interest expense
|
(1,530,576 | ) | (796,435 | ) | (473,264 | ) | (351,262 | ) | 68.3 | % | 34.7 | % | ||||||||||||
Net interest income
|
1,868,550 | 972,300 | 939,719 | 856,516 | 3.5 | % | 9.7 | % | ||||||||||||||||
Fees and income from services
|
||||||||||||||||||||||||
Fees and commission income
|
697,686 | 363,041 | 338,183 | 315,925 | 7.4 | % | 7.0 | % | ||||||||||||||||
Fees and commission expense
|
(163,746 | ) | (85,205 | ) | (74,601 | ) | (61,795 | ) | 14.2 | % | 20.7 | % |
2011
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
CONSOLIDATED INCOME STATEMENT DATA
|
ThUS$(1)
|
Ch$ million of constant pesos
|
% Change 2011 / 2010
|
% Change 2010 / 2009
|
||||||||||||||||||||
Total net fees and commission income
|
533,940 | 277,836 | 263,582 | 254,130 | 5.4 | % | 3.7 | % | ||||||||||||||||
Other operating income
|
||||||||||||||||||||||||
Net income from financial operations
|
328,350 | 170,857 | 38,755 | 3,887 | 340.9 | % | 897.0 | % | ||||||||||||||||
Foreign exchange profit (loss), net
|
(147,324 | ) | (76,660 | ) | 57,233 | 163,241 | – | % | (64.9 | %) | ||||||||||||||
Financial transactions, net
|
181,026 | 94,197 | 95,988 | 167,128 | (1.9 | %) | (42.6 | %) | ||||||||||||||||
Other operating income
|
36,032 | 18,749 | 43,608 | 25,866 | (57.0 | %) | 68.6 | % | ||||||||||||||||
Total other operating income
|
217,058 | 112,946 | 139,596 | 192,994 | (19.1 | %) | (27.7 | %) | ||||||||||||||||
Net operating profit before loan losses
|
2,619,548 | 1,363,082 | 1,342,897 | 1,303,640 | 1.5 | % | 3.0 | % | ||||||||||||||||
Provision for loan losses
|
(607,547 | ) | (316,137 | ) | (253,915 | ) | (333,145 | ) | 24.5 | % | (23.8 | %) | ||||||||||||
Net operating profit
|
2,012,001 | 1,046,945 | 1,088,982 | 970,495 | (3.9 | %) | 12.2 | % | ||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Personnel salaries and expenses
|
(539,277 | ) | (280,613 | ) | (250,265 | ) | (224,484 | ) | 12.1 | % | 11.5 | % | ||||||||||||
Administrative expenses
|
(320,602 | ) | (166,825 | ) | (147,343 | ) | (136,712 | ) | 13.2 | % | 7.8 | % | ||||||||||||
Depreciation and amortization
|
(102,750 | ) | (53,466 | ) | (49,403 | ) | (46,623 | ) | 8.2 | % | 6.0 | % | ||||||||||||
Impairment
|
(223 | ) | (116 | ) | (4,925 | ) | (75 | ) | (97.6 | %) | 6466.7 | % | ||||||||||||
Other operating expenses
|
123,394 | (64,208 | ) | (45,402 | ) | (37,364 | ) | 41.4 | % | 21.5 | % | |||||||||||||
Total operating expenses
|
(1,086,246 | ) | (565,228 | ) | (497,338 | ) | (445,258 | ) | 13.7 | % | 11.7 | % | ||||||||||||
Net operating income
|
925,755 | 481,717 | 591,644 | 525,237 | (18.6 | %) | 12.6 | % | ||||||||||||||||
Other non-operating results
|
||||||||||||||||||||||||
Income from investments in other companies
|
4,113 | 2,140 | 1,171 | 297 | 82.7 | % | 294.3 | % | ||||||||||||||||
Total other non-operating results
|
4,113 | 2,140 | 1,171 | 297 | 82.7 | % | 294.3 | % | ||||||||||||||||
Income before tax
|
929,868 | 483,857 | 592,815 | 525,534 | (18.4 | %) | 12.8 | % | ||||||||||||||||
Income tax
|
(148,348 | ) | (77,193 | ) | (85,343 | ) | (88,924 | ) | (9.5 | %) | (4.0 | %) | ||||||||||||
Consolidated net income for the period
|
781,520 | 406,664 | 507,472 | 436,610 | (19.9 | %) | 16.2 | % | ||||||||||||||||
Net income for the period attributable to:
|
||||||||||||||||||||||||
Equity holders of the Bank
|
772,044 | 401,733 | 505,393 | 431,557 | (20.5 | %) | 17.1 | % | ||||||||||||||||
Non-controlling interests
|
9,476 | 4,931 | 2,079 | 5,053 | 137.2 | % | (58.9 | %) |
(1)
|
Amounts stated in U.S. dollars at and for the year ended December 31, 2011, have been translated from Chilean pesos at the exchange rate of Ch$520.35 = US$1.00 as of December 31, 2011. See “Item 3: A. Selected Financial Data—Exchange Rates” for more information on exchange rate.
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||||||
Individuals (Commercial banking)
|
453,139 | 426,558 | 416,220 | 6.2 | % | 2.5 | % | |||||||||||||
Individuals (Santander Banefe)
|
117,154 | 106,942 | 115,840 | 9.5 | % | (7.7 | %) | |||||||||||||
Small and mid-sized companies
|
207,008 | 192,825 | 228,928 | 7.4 | % | (15.8 | %) | |||||||||||||
Institutional
|
26,856 | 19,675 | 18,789 | 36.5 | % | 4.7 | % | |||||||||||||
Companies
|
140,818 | 126,936 | 114,932 | 10.9 | % | 10.4 | % | |||||||||||||
Total commercial banking
|
944,975 | 872,936 | 894,709 | 8.3 | % | (2.4 | %) | |||||||||||||
Global banking & markets
|
48,942 | 60,164 | 33,238 | (18.7 | %) | 81.0 | % | |||||||||||||
Other(1)
|
(21,617 | ) | 6,619 | (71,431 | ) | – | % | – | % | |||||||||||
Net interest income
|
972,300 | 939,719 | 856,516 | 3.5 | % | 9.7 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||||||
Average interest-earning assets
|
20,355,039 | 17,479,483 | 16,265,592 | 16.5 | % | 7.5 | % | |||||||||||||
Average non-interest-bearing demand deposits
|
3,575,544 | 3,152,513 | 2,475,050 | 13.4 | % | 27.4 | % | |||||||||||||
Net interest margin(2)
|
4.8 | % | 5.4 | % | 5.3 | % | – | – | ||||||||||||
Average shareholders’ equity and average non-interest-bearing demand deposits to total average interest-earning assets
|
27.4 | % | 28.1 | % | 25.1 | % | – | – |
(1)
|
Consists mainly of net interest income from the Financial Management Division and the cost of funding our fixed income trading portfolio.
|
(2)
|
Each segment obtains funding from its clients. Any surplus deposits are transferred to the Financial Management Division, which in turn makes such excess available to other areas that need funding. The Financial Management Division also sells the funds it obtains in the institutional funding market at a transfer price equal to the market price of the funds.
|
(3)
|
Net interest margin is net interest income divided by average interest-earning assets.
|
|
·
|
Net interest income from individuals in commercial banking increased 6.2%, mainly as a result of the 10.7% increase in loan volumes in this segment. This was partially offset by higher funding costs due to the rising short-term interest rates throughout 2011.
|
|
·
|
Net interest income from individuals in Santander Banefe increased 9.5%, mainly as a result of the 12.6% increase in loan volumes in this segment. This was partially offset by higher funding costs due to the rising short-term interest rates throughout 2011.
|
|
·
|
Net interest income from small and mid-sized companies increased 7.4% mainly as a result of the 7.9% increase in loans to this segment. This was partially offset by the increase in average short-term interest rates, which affected funding costs.
|
|
·
|
Net interest income from the total Companies segment increased 10.9%, mainly as a result of the 11.1% increase in loans to this segment due to the positive evolution of the economy. This was partially offset by the rise in funding costs.
|
|
·
|
Loans in the Global Banking and Markets segment increased 15.6% in 2011 compared to 2010. Net interest income from the Global Banking and Markets segment decreased 18.7% in the same period. This
|
|
|
was mainly due to the higher short-term interest rates that affected funding costs and lower loan spreads due to competitive pressures.
|
|
·
|
Other net interest income consists mainly of net interest income from the available for sale investment portfolio and deposits in the Central Bank and the financial cost of supporting our cash position and investment portfolio for trading, the interest income from which is recognized as net income from financial operations and not interest income. The net interest income included as “other” totaled a loss of Ch$21,617 million in 2011 compared to a gain of Ch$6,619 million in 2010. As short-term interest rates increased, the financial cost of maintaining these lower yielding assets rose. Simultaneously, the yield obtained on low yielding assets did not rise as the Bank increased its short-term liquidity as a proactive measure given the uncertainty surrounding global financial markets, since the second quarter of 2011. The nominal rate earned on the Bank’s financial investments decreased from 3.2% in 2010 to 2.5% in 2011. This segment also reflects the impact of higher funding costs that finance the Bank’s financial investments and cash position.
|
As of December 31,
|
% Change
|
% Change
|
||||||||||||||||||
Loans by segment
|
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | |||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Individuals (Commercial banking)
|
8,484,493 | 7,664,070 | 6,678,117 | 10.7 | % | 14.8 | % | |||||||||||||
Individuals (Santander Banefe)
|
804,852 | 714,899 | 609,808 | 12.6 | % | 17.2 | % | |||||||||||||
Small and mid-sized companies
|
2,560,736 | 2,373,360 | 2,485,505 | 7.9 | % | (4.5 | %) | |||||||||||||
Institutional
|
355,199 | 332,150 | 282,933 | 6.9 | % | 17.4 | % | |||||||||||||
Companies
|
3,650,709 | 3,286,920 | 2,456,321 | 11.1 | % | 33.8 | % | |||||||||||||
Total Commercial banking
|
15,855,989 | 14,371,399 | 12,512,684 | 10.3 | % | 14.9 | % | |||||||||||||
Global banking & markets
|
1,494,752 | 1,293,221 | 1,209,547 | 15.6 | % | 6.9 | % | |||||||||||||
Other
|
84,041 | 62,662 | 29,045 | 34.1 | % | 115.7 | % | |||||||||||||
Total loans(1)
|
17,434,782 | 15,727,282 | 13,751,276 | 10.9 | % | 14.4 | % |
(1)
|
Includes interbank loans.
|
|
·
|
Net interest income from individuals in commercial banking increased 2.5% mainly as a result of the 14.8% increase in loan volumes to individuals due to the more favorable economic environment and improvements in asset quality after the 2009 recession. The majority of residential mortgage loans are recorded in this segment of the Bank and interest income from residential mortgage loans also increased 197.2% as a result of the rise in inflation rate as the majority of these loans are linked to inflation. This increase was offset by the normalization of consumer loan yields mentioned above.
|
|
·
|
Net interest income from individuals in Santander Banefe decreased 7.7% in 2010 compared to 2009. Despite the approximately 17.2% increase in loan volumes to individuals, loan yields decreased in Santander Banefe in 2010 as risk levels normalized following the 2009 recession and the better economic outlook in 2010 that led to higher competition in 2010.
|
|
·
|
Net interest income from small and mid-sized companies decreased 15.8%. This segment was affected by rising funding costs while interest rate yields declined. This decline was mainly due to the normalization of loan spreads mentioned above. Loans to this segment decreased 4.5% in 2010 compared to 2009.
|
|
·
|
Net interest income from companies increased 10.4% year-over-year, mainly as a result of the 33.8% increase in loans to this segment, which was partially offset by rising funding costs while interest rate yields declined. This decline was mainly due to the normalization of loan spreads mentioned above.
|
|
·
|
Net interest income from the global banking and markets segment increased 81.0% in 2010 compared to 2009 mainly due to the rising interest rate environment that increased spreads in this segment, especially in the second half of the year, and the higher inflation rate, which had a positive effect on interest gained from our commercial loan book denominated in UFs. Loan volumes in this segment increased 6.9%. This segment also improved due to an improvement in our funding mix through demand deposits and cash management, as well as the movement of some of our former mid-sized clients to the global banking segment as a result of their growth.
|
|
·
|
Net interest income from non-segmented portions of interest earning assets, which consists mainly of net interest income from the Financial Management Division’s available for sale investment portfolio improved from a loss of Ch$71,431 million in 2009 to a gain of Ch$6,619 million in 2010.This was mainly as a result of higher net interest revenue from financial investments that are mainly denominated in UFs and, therefore, were positively affected by the rise in inflation. This portfolio manages the largest portion of our inflation gap and generally shows greater changes than the changes in interest rates. See “Item 5: C. Operating Results—Impact of Inflation.”
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Collections
|
61,803 | 60,136 | 65,782 | 2.8 | % | (8.6 | %) | |||||||||||||
Checking accounts and lines of credit
|
40,327 | 42,614 | 53,388 | (5.4 | %) | (20.2 | %) | |||||||||||||
Credit, debit and ATM cards
|
59,525 | 55,899 | 51,670 | 6.5 | % | 8.2 | % | |||||||||||||
Asset management
|
37,618 | 39,952 | 30,766 | (5.8 | %) | 29.9 | % | |||||||||||||
Letters of credit
|
24,388 | 22,852 | 24,558 | 6.7 | % | (6.9 | %) | |||||||||||||
Insurance brokerage
|
34,066 | 32,783 | 16,307 | 3.9 | % | 101.0 | % | |||||||||||||
Custody and brokerage services
|
10,517 | 9,101 | 6,532 | 15.6 | % | 39.3 | % | |||||||||||||
Office banking
|
2,267 | 1,832 | 2,552 | 23.7 | % | (28.2 | %) | |||||||||||||
Other fees
|
7,325 | (1,587 | ) | 2,575 | – | % | – | % | ||||||||||||
Total fees and commission income, net
|
277,836 | 263,582 | 254,130 | 5.4 | % | 3.7 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Individuals (Commercial banking)
|
149,970 | 159,708 | 141,981 | (6.1 | %) | 12.5 | % | |||||||||||||
Individuals (Santander Banefe)
|
37,206 | 32,133 | 29,452 | 15.8 | % | 9.1 | % | |||||||||||||
Small and mid-sized companies
|
38,274 | 34,460 | 41,917 | 11.1 | % | (17.8 | %) | |||||||||||||
Institutional
|
1,831 | 2,452 | 1,962 | (25.3 | %) | 25.0 | % | |||||||||||||
Companies
|
24,310 | 20,215 | 20,567 | 20.3 | % | (1.7 | %) | |||||||||||||
Total commercial banking
|
251,591 | 248,968 | 235,879 | 1.1 | % | 5.5 | % | |||||||||||||
Global banking and markets
|
31,908 | 23,173 | 18,747 | 37.7 | % | 23.6 | % | |||||||||||||
Other
|
(5,663 | ) | (8,559 | ) | (496 | ) | (33.8 | %) | 1625.6 | % | ||||||||||
Total fees and commission income, net
|
277,836 | 263,582 | 254,130 | 5.4 | % | 3.7 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Net income from financial operations
|
170,857 | 38,755 | 3,887 | 340.9 | % | 897.0 | % | |||||||||||||
Foreign exchange profit (loss), net
|
(76,660 | ) | 57,233 | 163,241 | – | % | (64.9 | %) | ||||||||||||
Total financial transactions, net
|
94,197 | 95,988 | 167,128 | (1.9 | %) | (42.6 | %) |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Derivatives classified as trading
|
116,877 | 3,598 | (102,825 | ) | 3148.4 | % | – | % | ||||||||||||
Trading investments
|
38,819 | 31,058 | 49,220 | 25.0 | % | (36.9 | %) | |||||||||||||
Sale of loans
|
9,692 | 12,397 | 9,231 | (21.8 | %) | 34.3 | % | |||||||||||||
Available-for-sale instruments sales
|
(3,356 | ) | (8,319 | ) | 47,335 | (59.7 | %) | – | % | |||||||||||
Other results
|
8,825 | 21 | 926 | 41923.8 | % | (97.7 | %) | |||||||||||||
Net income from financial operations
|
170,857 | 38,755 | 3,887 | 340.9 | % | 897.0 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Net profit or loss from foreign currency exchange differences
|
(257,986 | ) | 273,997 | 401,695 | – | % | (31.8 | %) | ||||||||||||
Hedge-accounting derivatives
|
177,553 | (215,721 | ) | (266,221 | ) | – | % | (19.0 | %) | |||||||||||
Translation gains and losses over assets and liabilities indexed to foreign currencies, net
|
3,773 | (1,043 | ) | 27,767 | – | % | – | % | ||||||||||||
Net results from foreign exchange profit (loss)
|
(76,660 | ) | 57,233 | 163,241 | – | % | (64.9 | )% |
Year ended December 31,
|
% Change
|
|||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Santander Global Connect(1)
|
62,625 | 54,472 | 58,124 | 15.0 | % | (6.3 | %) | |||||||||||||
Market-making with clients
|
25,930 | 23,837 | 31,525 | 8.8 | % | (24.4 | %) | |||||||||||||
Client treasury services
|
88,555 | 78,309 | 89,649 | 13.1 | % | (12.6 | %) | |||||||||||||
Sale of loans and charged-off loans
|
9,692 | 12,397 | 9,231 | (21.8 | %) | 34.3 | % | |||||||||||||
Proprietary trading
|
16,022 | 5,879 | 16,392 | 172.5 | % | (64.1 | %) | |||||||||||||
Financial Management (ALCO) and other results(2)
|
(20,072 | ) | (597 | ) | 51,856 | 3262.2 | % | – | % | |||||||||||
Non-client treasury income
|
5,642 | 17,679 | 77,479 | (68.1 | %) | (77.2 | %) | |||||||||||||
Total financial transactions, net
|
94,197 | 95,988 | 167,128 | (1.9 | %) | (42.6 | %) |
(1)
|
Santander Global Connect is our platform to sell derivatives, which consist mainly of foreign currency forward contracts, to our clients, mainly corporations and middle-market businesses.
|
(2)
|
The Financial Management Division manages the structural interest rate risk, the structural position in inflation-indexed assets and liabilities, capital requirements and liquidity levels. The aim of the Financial Management Division is to provide stability and continuity in our net interest income from commercial activities and to ensure that we comply with internal and regulatory limits regarding liquidity, regulatory capital, reserve requirements and market risk.
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(In million of Chilean pesos)
|
||||||||||||||||||||
Income from assets received in lieu of payment
|
5,629 | 1,556 | 29 | 261.8 | % | 5265.5 | % | |||||||||||||
Net results from sale of investment in other companies
|
– | – | 1,859 | – | % | – | % | |||||||||||||
Operational leases
|
305 | 117 | 1,123 | 160.7 | % | (89.6 | %) | |||||||||||||
Gain on sale of Bank property, plant and equipment
|
11,863 | 31,246 | 7,622 | (62.0 | %) | 309.9 | % | |||||||||||||
Recovery of generic provisions for contingencies
|
– | 7,040 | 14,793 | (100.0 | %) | (52.4 | %) | |||||||||||||
Insurance coverage for earthquake
|
437 | 3,175 | – | (86.2 | %) | – | % | |||||||||||||
Other
|
515 | 474 | 440 | 8.6 | % | 7.7 | % | |||||||||||||
Sub-total other income
|
13,120 | 42,052 | 23,978 | (68.8 | %) | 75.4 | % | |||||||||||||
Total other operating income
|
18,749 | 43,608 | 25,866 | (57.0 | %) | 68.6 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Gross provision expenses(1)
|
(60,874 | ) | (77,348 | ) | (76,588 | ) | (21.3 | %) | 1.0 | % | ||||||||||
Charge offs
|
(291,088 | ) | (207,046 | ) | (295,831 | ) | 40.6 | % | (30.0 | %) | ||||||||||
Recoveries of loans previously charged-off
|
35,825 | 30,479 | 39,274 | 17.5 | % | (22.4 | %) | |||||||||||||
Provision expenses, net
|
(316,137 | ) | (253,915 | ) | (333,145 | ) | 24.5 | % | (23.8 | %) | ||||||||||
Period end loans(2)
|
17,434,782 | 15,727,282 | 13,751,276 | 10.9 | % | 14.4 | % | |||||||||||||
Past due loans(3)
|
237,573 | 206,601 | 193,250 | 15.0 | % | 6.9 | % | |||||||||||||
Non-performing loans(4)
|
511,357 | 416,739 | 409,067 | 22.7 | % | 1.9 | % | |||||||||||||
Impaired loans(5)
|
1,323,355 | 1,480,476 | 1,485,737 | (10.6 | %) | (0.4 | %) | |||||||||||||
Loan loss allowance(6)
|
488,468 | 425,447 | 349,527 | 14.8 | % | 21.7 | % | |||||||||||||
Non-performing loans / period end loans(4)
|
2.93 | % | 2.65 | % | 2.97 | % | ||||||||||||||
Past due loans / period end loans
|
1.36 | % | 1.31 | % | 1.41 | % | ||||||||||||||
Loan loss allowances / Total loans
|
2.80 | % | 2.71 | % | 2.54 | % | ||||||||||||||
Coverage ratio non-performing loans(7)
|
95.52 | % | 102.09 | % | 85.44 | % | ||||||||||||||
Coverage ratio past due loans(8)
|
205.61 | % | 205.93 | % | 180.87 | % |
(1)
|
Net of the reversal of allowances on loans charged off during the period.
|
(2)
|
Includes Ch$23,412 million in 2009, Ch$69,726 million in 2010 and Ch$87,688 in interbank loans.
|
(3)
|
Past due loans all are installments and lines of credit that are over 90 days past due.
|
(4)
|
Non-performing loans include the aggregate unpaid principal and accrued but unpaid interest on all loans with at least one installment over 90 days overdue.
|
(5)
|
Impaired loans defined as of December 31, 2011, 2010 and 2009 include: (A) for loans whose allowance is determined on an individual basis, impaired loans include: (1) all loans to a debtor that are rated C1 through D2 and (2) total loans to single debtors with a loan that is non-performing, excluding residential mortgage loans if the non-performance of the mortgage loans is less than 90 days; (B) for loans whose loan loss allowance is determined on a group basis, impaired loans include: (1) total loans to a debtor, when a loan to that debtor is non-performing or has been renegotiated, excluding performing residential mortgage loans and (2) if the loan that is non-performing or renegotiated is a residential mortgage loan all loans to that debtor are considered impaired. See Note 10(a) of the Consolidated Financial Statements.
|
(6)
|
Includes Ch$42 million in 2009, Ch$54 million in 2010 and Ch$11 million in allowance for loan losses for interbank loans.
|
(7)
|
Loan loss allowance divided by non-performing loans.
|
(8)
|
Loan loss allowance divided by past due loans.
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Gross provision expense by loan product
|
||||||||||||||||||||
Consumer loans
|
(17,464 | ) | (58,984 | ) | (19,030 | ) | (70.4 | %) | 210.0 | % | ||||||||||
Residential mortgage loans
|
(18,302 | ) | (799 | ) | (3,903 | ) | 2190.6 | % | (79.5 | %) | ||||||||||
Commercial loans
|
(27,298 | ) | (15,994 | ) | (52,340 | ) | 70.7 | % | (69.4 | %) | ||||||||||
Contingent loans (off-balance sheet)
|
2,147 | (1,559 | ) | (1,308 | ) | – | 19.2 | % | ||||||||||||
Interbank loans
|
43 | (12 | ) | (7 | ) | – | 71.4 | % | ||||||||||||
Total gross provisions
|
(60,874 | ) | (77,348 | ) | (76,588 | ) | (21.3 | %) | 1.0 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Charge-offs by loan product
|
||||||||||||||||||||
Consumer loans
|
(187,937 | ) | (121,621 | ) | (239,005 | ) | 54.5 | % | (49.1 | %) | ||||||||||
Residential mortgage loans
|
(12,776 | ) | (14,549 | ) | (8,708 | ) | (12.2 | %) | 67.1 | % | ||||||||||
Commercial loans
|
(90,375 | ) | (70,876 | ) | (48,118 | ) | 27.5 | % | 47.3 | % | ||||||||||
Total charge-offs
|
(291,088 | ) | (207,046 | ) | (295,831 | ) | 40.6 | % | (30.0 | %) |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Recovery of loans previously charged-off
|
||||||||||||||||||||
Consumer loans
|
12,474 | 22,096 | 28,268 | (43.5 | %) | (21.8 | %) | |||||||||||||
Residential mortgage loans
|
16,135 | 1,389 | 2,560 | 1061.6 | % | (45.7 | %) | |||||||||||||
Commercial loans
|
7,216 | 6,994 | 8,446 | 3.2 | % | (17.2 | %) | |||||||||||||
Total recoveries
|
35,825 | 30,479 | 39,274 | 17.5 | % | (22.4 | %) |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Gains on sale of loans previously charged-off
|
||||||||||||||||||||
Sale of charged-off loans
|
7,324 | 9,824 | 8,689 | (25.4 | %) | 13.1 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Individuals (Commercial banking)
|
(185,885 | ) | (86,643 | ) | (147,169 | ) | 114.5 | % | (41.1 | %) | ||||||||||
Individuals (Santander Banefe)
|
(62,252 | ) | (27,919 | ) | (82,564 | ) | 123.0 | % | (66.2 | %) | ||||||||||
Small and mid-sized companies (SMEs)
|
(65,028 | ) | (75,742 | ) | (76,143 | ) | (14.1 | %) | (0.5 | %) | ||||||||||
Institutional
|
503 | (1,229 | ) | (327 | ) | -- | % | 275.8 | % | |||||||||||
Companies
|
(11,592 | ) | (45,769 | ) | (24,626 | ) | (74.7 | %) | 85.9 | % | ||||||||||
Total Commercial banking
|
(324,254 | ) | (237,302 | ) | (330,829 | ) | 36.6 | % | (28.3 | %) | ||||||||||
Global banking & markets
|
7,614 | (15,495 | ) | (2,218 | ) | – | % | 598.6 | % | |||||||||||
Other
|
503 | (1,118 | ) | (98 | ) | – | % | 1040.8 | % | |||||||||||
Total provisions, net
|
(316,137 | ) | (253,915 | ) | (333,145 | ) | 24.5 | % | (23.8 | %) |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Personnel salaries and expenses
|
(280,613 | ) | (250,265 | ) | (224,484 | ) | 12.1 | % | 11.5 | % | ||||||||||
Administrative expenses
|
(166,825 | ) | (147,343 | ) | (136,712 | ) | 13.2 | % | 7.8 | % | ||||||||||
Depreciation and amortization
|
(53,466 | ) | (49,403 | ) | (46,623 | ) | 8.2 | % | 6.0 | % | ||||||||||
Impairment
|
(116 | ) | (4,925 | ) | (75 | ) | (97.6 | %) | 6466.7 | % | ||||||||||
Other operating expenses
|
(64,208 | ) | (45,402 | ) | (37,364 | ) | 41.4 | % | 21.5 | % | ||||||||||
Total operating expenses
|
(565,228 | ) | (497,338 | ) | (445,258 | ) | 13.7 | % | 11.7 | % | ||||||||||
Efficiency ratio(1)
|
41.5 | % | 37.0 | % | 34.2 | % |
(1)
|
The efficiency ratio is the ratio of total operating expenses to total operating income. Total operating income consists of net interest income, fee income, and other operating income.
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Individuals (Commercial banking)
|
(251,554 | ) | (224,936 | ) | (214,021 | ) | 11.8 | % | 5.1 | % | ||||||||||
Individuals (Santander Banefe)
|
(70,719 | ) | (66,272 | ) | (54,913 | ) | 6.7 | % | 20.7 | % | ||||||||||
Small and mid-sized companies
|
(74,962 | ) | (67,059 | ) | (58,741 | ) | 11.8 | % | 14.2 | % | ||||||||||
Institutional
|
(11,329 | ) | (10,108 | ) | (6,799 | ) | 12.1 | % | 48.7 | % | ||||||||||
Companies
|
(40,680 | ) | (32,623 | ) | (30,628 | ) | 24.7 | % | 6.5 | % | ||||||||||
Total commercial banking
|
(449,244 | ) | (400,998 | ) | (365,102 | ) | 12.0 | % | 9.8 | % | ||||||||||
Global banking and markets
|
(35,302 | ) | (30,788 | ) | (29,485 | ) | 14.7 | % | 4.4 | % | ||||||||||
Other
|
(16,474 | ) | (20,150 | ) | (13,307 | ) | (18.2 | %) | 51.4 | % | ||||||||||
Total personnel, administrative expenses, depreciation
and amortization and impairment(1) |
(501,020 | ) | (451,936 | ) | (407,894 | ) | 10.9 | % | 10.8 | % |
(1)
|
Excludes other operating expenses.
|
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Other operating expenses
|
||||||||||||||||||||
Repossessed asset provision and expenses
|
(12,782 | ) | (5,986 | ) | (6,128 | ) | 113.5 | % | (2.3 | %) | ||||||||||
Credit card expenses
|
(6,427 | ) | (6,777 | ) | (5,902 | ) | (5.2 | %) | 14.8 | % | ||||||||||
Customer service expenses
|
(8,965 | ) | (7,756 | ) | (8,807 | ) | 15.6 | % | (11.9 | %) |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Earthquake related expenses
|
(475 | ) | (5,875 | ) | - | (91.9 | %) | – | ||||||||||||
Provision for contingencies
|
(8,144 | ) | (775 | ) | (1,088 | ) | 950.8 | % | (28.8 | %) | ||||||||||
Other expenses
|
(27,415 | ) | (18,233 | ) | (15,439 | ) | 50.4 | % | 18.1 | % | ||||||||||
Total
|
(64,208 | ) | (45,402 | ) | (37,364 | ) | 41.4 | % | 21.5 | % |
Year ended December 31,
|
% Change
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | ||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Income before tax
|
483,857 | 592,815 | 525,534 | (18.4 | %) | 12.8 | % | |||||||||||||
Income tax
|
(77,193 | ) | (85,343 | ) | (88,924 | ) | (9.5 | %) | (4.0 | %) | ||||||||||
Effective tax rate(1)
|
15.9 | % | 14.4 | % | 16.9 | % |
(1)
|
The effective tax is the income tax divided by net income before tax.
|
Contractual Obligations
|
Demand
(MCh$)
|
Up to 1 month
(MCh$)
|
Between 1 and 3 months
(MCh$)
|
Between 3 and 12 months
(MCh$)
|
Subtotal up to 1 year
(MCh$)
|
Between 1 and 5 years
(MCh$)
|
More than 5 years
(MCh$)
|
Subtotal after 1 year
M(Ch$)
|
Total
(MCh$)
|
|||||||||||||||||||||||||||
Deposits and other demand liabilities | 4,413,815 | – | – | – | 4,413,815 | – | – | – | 4,413,815 | |||||||||||||||||||||||||||
Investments under repurchase agreements
|
– | 463,083 | 78,712 | 2,586 | 544,381 | – | – | – | 544,381 | |||||||||||||||||||||||||||
Time deposits and other time liabilities
|
105,463 | 4,415,765 | 2,509,308 | 1,496,193 | 8,526,729 | 371,736 | 22,649 | 394,385 | 8,921,114 | |||||||||||||||||||||||||||
Financial derivative contracts
|
– | 64,290 | 158,204 | 209,746 | 432,240 | 513,944 | 346,218 | 860,162 | 1,292,402 |
Contractual Obligations
|
Demand
(MCh$)
|
Up to 1 month
(MCh$)
|
Between 1 and 3 months
(MCh$)
|
Between 3 and 12 months
(MCh$)
|
Subtotal up to 1 year
(MCh$)
|
Between 1 and 5 years
(MCh$)
|
More than 5 years
(MCh$)
|
Subtotal after 1 year
M(Ch$)
|
Total
(MCh$)
|
|||||||||||||||||||||||||||
Interbank borrowings
|
194,451 | 7,750 | 470,749 | 1,068,014 | 1,740,964 | 179,128 | – | 179,128 | 1,920,092 | |||||||||||||||||||||||||||
Issued debt instruments
|
– | 3,788 | 15 | 890,086 | 893,889 | 2,286,059 | 1,443,291 | 3,729,350 | 4,623,239 | |||||||||||||||||||||||||||
Other financial liabilities
|
50,840 | 761 | 980 | 3,497 | 56,078 | 39,025 | 81,496 | 120,521 | 176,599 | |||||||||||||||||||||||||||
Total liabilities
|
4,764,569 | 4,955,437 | 3,217,968 | 3,670,122 | 16,608,096 | 3,389,892 | 1,893,654 | 5,283,546 | 21,891,642 |
As of December 31, 2011
|
|||||
(in millions of Ch$)
|
|||||
Due within 1 year
|
15,089 | ||||
Due after 1 year but within 2 years
|
13,521 | ||||
Due after 2 years but within 3 years
|
12,373 | ||||
Due after 3 years but within 4 years
|
10,781 | ||||
Due after 4 years but within 5 years
|
9,347 | ||||
Due after 5 years
|
63,686 | ||||
Total
|
124,797 |
Other Commercial Commitments
|
Up to 1 month (in millions of Ch$)
|
Between 1 and 3 months (in millions of Ch$)
|
Between 3 and 12 months (in millions of Ch$)
|
Between 1 and 5 years (in millions of Ch$)
|
More than 5 years (in millions of Ch$)
|
Total (in millions of Ch$)
|
||||||||||||||||||
Guarantees
|
77,688 | 120,989 | 314,486 | 383,712 | 24,111 | 920,986 | ||||||||||||||||||
Confirmed foreign letters of credit
|
21,653 | 19,091 | 377 | 11,768 | - | 52,889 | ||||||||||||||||||
Letters of credit issued
|
58,665 | 85,747 | 1,552 | 38,685 | - | 184,649 | ||||||||||||||||||
Pledges and other commercial commitments
|
22,253 | 31,783 | 27,934 | 59,849 | 5,262 | 147,081 | ||||||||||||||||||
Total other commercial commitments
|
180,259 | 257,610 | 344,349 | 494,014 | 29,373 | 1,305,605 |
Consolidated assets as of
|
Risk-weighted assets
|
|||||||||||||||
December 31, 2011
|
December 31, 2010
|
December 31, 2011
|
December 31, 2010
|
|||||||||||||
(Ch$ million)
|
||||||||||||||||
Asset Balance (Net of allowances)(3)
|
||||||||||||||||
Cash and deposits in bank
|
2,793,701 | 1,762,198 | - | - | ||||||||||||
Cash items in process of collecion
|
276,454 | 374,368 | 45,737 | 126,083 | ||||||||||||
Trading investments
|
409,763 | 379,670 | 23,817 | 57,588 | ||||||||||||
Investments under resale agreements
|
12,928 | 170,985 | 12,928 | 98,323 | ||||||||||||
Financial derivative contracts
|
1,158,023 | 1,452,068 | 807,233 | 871,872 | ||||||||||||
Interbank loans
|
87,541 | 69,672 | 17,508 | 13,934 | ||||||||||||
Loans and accounts receivables from customers
|
16,823,407 | 15,215,318 | 14,746,903 | 13,350,182 | ||||||||||||
Available for sale investments
|
1,661,311 | 1,473,980 | 99,197 | 101,875 | ||||||||||||
Investments in other companies
|
8,728 | 7,275 | 8,728 | 7,275 | ||||||||||||
Intangibles assets
|
80,739 | 77,990 | 80,739 | 77,990 | ||||||||||||
Property, plant and equipment
|
153,059 | 154,985 | 153,059 | 154,985 | ||||||||||||
Current taxes
|
37,253 | 12,499 | 3,725 | 1,250 | ||||||||||||
Deferred taxes
|
147,754 | 117,964 | 14,775 | 11,796 | ||||||||||||
Other assets
|
546,470 | 640,937 | 426,822 | 474,135 | ||||||||||||
Off-balance sheet assets
|
- | |||||||||||||||
Contingent loans
|
3,023,330 | 3,173,789 | 1,801,971 | 1,897,977 | ||||||||||||
Total
|
27,220,461 | 25,083,698 | 18,243,142 | 17,245,265 | ||||||||||||
Ratio(1) (2)
|
||||||||||||||||
December 31, 2011
|
December 31, 2010
|
December 31, 2011
|
December 31, 2010
|
|||||||||||||
(Ch$ million)
|
%
|
%
|
||||||||||||||
Basic capital
|
2,001,222 | 1,831,798 | 7.35 | 7.30 | ||||||||||||
Regulatory capital
|
2,687,393 | 2,503,898 | 14.73 | 14.52 |
(1)
|
As a percentage of total assets.
|
(2)
|
As a percentage of risk weighted assets (BIS ratio).
|
(3)
|
As required by local regulations.
|
As of December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Chilean Central Bank and Government Securities
|
||||||||||||
Chilean Central Bank bonds
|
311,503 | 247,019 | 667,703 | |||||||||
Chilean Central Bank notes
|
60,233 | 68,985 | 63,868 | |||||||||
Other Chilean Central Bank and government securities
|
15,789 | 7,123 | 29,806 | |||||||||
Subtotal
|
387,525 | 323,127 | 761,377 | |||||||||
Other Chilean Securities
|
||||||||||||
Time deposits in Chilean financial institutions
|
- | - | - | |||||||||
Mortgage bonds of Chilean financial institutions
|
- | - | 11 | |||||||||
Chilean financial institutions bonds
|
- | 19,628 | - | |||||||||
Chilean corporate bonds
|
- | 11,404 | - | |||||||||
Other Chilean securities
|
- | - | - | |||||||||
Subtotal
|
- | 31,032 | 11 | |||||||||
Foreign Financial Securities
|
||||||||||||
Other foreign financial instruments
|
- | - | - | |||||||||
Subtotal
|
- | - | - | |||||||||
Investments in mutual funds
|
||||||||||||
Funds managed by related entities
|
22,238 | 25,511 | 37,151 | |||||||||
Subtotal
|
22,238 | 25,511 | 37,151 | |||||||||
Total
|
409,763 | 379,670 | 798,539 |
As of December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Chilean Central Bank and Government Securities
|
||||||||||||
Chilean Central Bank bonds
|
570,573 | 555,981 | 1,063,879 | |||||||||
Chilean Central Bank notes
|
563,114 | 366,210 | 264,011 | |||||||||
Other Chilean Central Bank and government securities
|
173,839 | 175,296 | 212,362 | |||||||||
Subtotal
|
1,307,526 | 1,097,487 | 1,540,252 | |||||||||
Other Chilean Securities
|
||||||||||||
Time deposits in Chilean financial institutions
|
275,022 | - | 41,407 | |||||||||
Mortgage bonds of Chilean financial institutions
|
66,806 | 218,112 | 236,847 | |||||||||
Chilean financial institution bonds
|
- | - | - | |||||||||
Chilean corporate bonds
|
- | - | 11,584 | |||||||||
Other Chilean securities
|
319 | 147,833 | - | |||||||||
Subtotal
|
342,147 | 365,945 | 289,838 | |||||||||
Others Financial Securities
|
||||||||||||
Central Bank and Government Foreign Securities
|
- | - | - | |||||||||
Other Foreign financial securities
|
11,638 | 10,548 | - | |||||||||
Subtotal
|
11,638 | 10,548 | - | |||||||||
Total
|
1,661,311 | 1,473,980 | 1,830,090 |
Within one year
|
Weighted average Nominal Rate
|
After one year but within five years
|
Weighted average Nominal Rate
|
After five years but within ten years
|
Weighted average Nominal Rate
|
After ten years
|
Weighted average Nominal Rate
|
Total
|
Weighted average Nominal Rate
|
|||||||||||||||||||||||||||||||
(in millions of Ch$, except rates)
|
||||||||||||||||||||||||||||||||||||||||
Held for Trading
|
||||||||||||||||||||||||||||||||||||||||
Central Bank and Government Securities
|
||||||||||||||||||||||||||||||||||||||||
Central Bank bonds
|
264,539 | 3.5 | 38,180 | 2.8 | 8,198 | 3.1 | 586 | 2.8 | 311,503 | 3.4 | ||||||||||||||||||||||||||||||
Central Bank notes
|
54,286 | 3.5 | 5,885 | 0.3 | 62 | - | - | - | 60,233 | 3.4 | ||||||||||||||||||||||||||||||
Other Chilean Central Bank and Treasury securities
|
- | - | 792 | - | 14,766 | 3.1 | 231 | - | 15,789 | 3.1 | ||||||||||||||||||||||||||||||
Subtotal
|
318,825 | - | 44,857 | - | 23,026 | - | 817 | - | 387,525 | - | ||||||||||||||||||||||||||||||
Other Chilean Securities
|
||||||||||||||||||||||||||||||||||||||||
Mortgage finance bonds
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Chilean financial institutions bonds
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Chilean corporate bonds
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Subtotal
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Investment in mutual funds
|
||||||||||||||||||||||||||||||||||||||||
Mutual funds administered by related parties
|
22,238 | 0.3 | - | - | - | - | - | - | 22,238 | 0.3 | ||||||||||||||||||||||||||||||
Subtotal
|
22,238 | - | - | - | - | - | - | - | 22,238 | - | ||||||||||||||||||||||||||||||
Total
|
341,063 | - | 44,857 | - | 23,026 | - | 817 | - | 409,763 | - |
Within one year
|
Weighted average Nominal Rate
|
After one year but within five years
|
Weighted average Nominal Rate
|
After five years but within ten years
|
Weighted average Nominal Rate
|
After ten years
|
Weighted average Nominal Rate
|
Total
|
Weighted average Nominal Rate
|
|||||||||||||||||||||||||||||||
(in millions of Ch$, except rates )
|
||||||||||||||||||||||||||||||||||||||||
Available-for-sale Investments
|
||||||||||||||||||||||||||||||||||||||||
Central Bank and Government Securities
|
||||||||||||||||||||||||||||||||||||||||
Central Bank bonds
|
158,968 | 4.2 | 327,479 | 4.5 | 83,801 | 5.5 | 325 | - | 570,573 | 4.6 | ||||||||||||||||||||||||||||||
Central Bank notes
|
543,682 | 0.4 | 15,367 | 2.9 | 115 | 2.7 | 3,950 | 2.4 | 563,114 | 0.5 | ||||||||||||||||||||||||||||||
Others securities
|
722 | 2.6 | 47,218 | 5.0 | 125,442 | 5.2 | 457 | 4.6 | 173,839 | 5.0 | ||||||||||||||||||||||||||||||
Subtotal
|
703,372 | - | 390,064 | - | 209,358 | - | 4,732 | - | 1,307,526 | - | ||||||||||||||||||||||||||||||
Others Financial Securities
|
||||||||||||||||||||||||||||||||||||||||
Mortgage finance bonds
|
419 | 0.3 | 1,422 | 3.8 | 4,807 | 3.7 | 60,158 | 3.8 | 66,806 | 3.8 | ||||||||||||||||||||||||||||||
Chilean corporate bonds
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Deposit in Chilean Financial Institutions
|
275,022 | 0.5 | - | - | - | - | - | - | 275,022 | 0.5 | ||||||||||||||||||||||||||||||
Others Chilean Securities
|
24 | 5.9 | 295 | 6.3 | - | - | - | - | 319 | 6.2 | ||||||||||||||||||||||||||||||
Central Bank and Government
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Foreign Financial Securities
|
||||||||||||||||||||||||||||||||||||||||
Others Foreign Securities
|
- | - | 11,638 | 2.2 | - | - | - | - | 11,638 | 2.2 | ||||||||||||||||||||||||||||||
Subtotal
|
275,465 | - | 13,355 | - | 4,807 | - | 60,158 | - | 353,785 | - | ||||||||||||||||||||||||||||||
Total
|
978,837 | - | 403,419 | - | 214,165 | - | 64,890 | - | 1,661,311 | - |
|
·
|
Our total liabilities with maturities of less than 30 days cannot exceed our total assets with maturities of less than 30 days by an amount greater than our capital. This limit must be calculated in local currency and foreign currencies together as one gap.
|
|
·
|
Our total liabilities with maturities of less than 90 days cannot exceed our total assets with maturities of less than 90 days by more than twice of our capital. This limit must be calculated in local currency and foreign currencies together as one gap.
|
Year ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$) | ||||||||||||
Net cash provided by (used in) operating activities
|
1,556,890 | (64,037 | ) | 1,323,587 |
Year ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$) | ||||||||||||
Net cash used in investment activities
|
(52,095 | ) | (20,019 | ) | (28,129 | ) |
Year ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$) | ||||||||||||
Net cash used in financing activities
|
(289,416 | ) | (258,756 | ) | (172,065 | ) |
(millions of Ch$, except percentages)
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||
Average Balance
|
% of Total Average Liabilities
|
Average Nominal Rate
|
Average Balance
|
% of Total Average Liabilities
|
Average Nominal Rate
|
Average Balance
|
% of Total Average
Liabilities
|
Average Nominal Rate
|
||||||||||||||||||||||||||||
Savings accounts
|
103,085 | 0.4 | % | 3.6 | % | 102,732 | 0.5 | % | 1.2 | % | 100,294 | 0.5 | % | (1.0 | %) | |||||||||||||||||||||
Time deposits
|
9,107,719 | 37.7 | % | 4.9 | % | 7,482,544 | 35.9 | % | 3.0 | % | 8,355,446 | 41.8 | % | 2.8 | % | |||||||||||||||||||||
Central Bank borrowings
|
3,097 | 0.0 | % | 6.0 | % | 304,292 | 1.5 | % | 0.5 | % | 297,346 | 1.5 | % | 0.9 | % | |||||||||||||||||||||
Repurchase agreements
|
249,174 | 1.0 | % | 3.5 | % | 196,719 | 0.9 | % | 1.2 | % | 486,000 | 2.4 | % | 2.9 | % | |||||||||||||||||||||
Mortgage finance bonds
|
174,224 | 0.7 | % | 9.2 | % | 224,436 | 1.1 | % | 7.8 | % | 301,501 | 1.5 | % | 2.8 | % | |||||||||||||||||||||
Other interest bearing liabilities
|
6,128,052 | 25.4 | % | 5.2 | % | 5,126,595 | 24.6 | % | 4.5 | % | 3,909,793 | 19.6 | % | 2.5 | % | |||||||||||||||||||||
Subtotal interest bearing liabilities
|
15,765,351 | 65.2 | % | 5.1 | % | 13,437,318 | 64.5 | % | 3.5 | % | 13,450,380 | 67.3 | % | 2.6 | % | |||||||||||||||||||||
Non-interest bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits
|
3,575,544 | 14.8 | % | 3,152,513 | 15.1 | % | 2,475,050 | 12.4 | % | |||||||||||||||||||||||||||
Derivatives
|
1,457,638 | 6.1 | % | 1,323,161 | 6.3 | % | 1,387,026 | 6.9 | % | |||||||||||||||||||||||||||
Other non-interest bearing liabilities
|
1,340,699 | 5.6 | % | 1,192,374 | 5.7 | % | 1,079,516 | 5.4 | % | |||||||||||||||||||||||||||
Shareholders’ equity
|
1,994,487 | 8.3 | % | 1,752,329 | 8.4 | % | 1,599,938 | 8.0 | % | |||||||||||||||||||||||||||
Subtotal non-interest bearing liabilities
|
8,368,368 | 34.8 | % | 7,420,377 | 35.5 | % | 6,541,530 | 32.7 | % | |||||||||||||||||||||||||||
Total liabilities
|
24,133,719 | 100.0 | % | 20,857,695 | 100.0 | % | 19,991,910 | 100.0 | % |
2011
|
2010
|
2009
|
2008
|
|||||||||||||
(in millions of Ch$)
|
||||||||||||||||
Demand deposits and other demand obligations
|
||||||||||||||||
Checking accounts
|
3,543,776 | 3,330,352 | 2,776,607 | 2,268,991 | ||||||||||||
Other deposits and demand accounts
|
350,519 | 368,934 | 303,495 | 206,347 | ||||||||||||
Other demand obligations
|
519,520 | 537,148 | 453,432 | 472,824 | ||||||||||||
Subtotals
|
4,413,815 | 4,236,434 | 3,533,534 | 2,948,162 | ||||||||||||
Time deposits and other time deposits
|
||||||||||||||||
Time deposits
|
8,816,766 | 7,154,396 | 4,219,392 | 9,476,024 | ||||||||||||
Time saving accounts
|
102,831 | 103,191 | 98,985 | 102,951 | ||||||||||||
Other time deposits
|
1,517 | 1,170 | 2,856,880 | 177,291 | ||||||||||||
Subtotals
|
8,921,114 | 7,258,757 | 7,175,257 | 9,756,266 | ||||||||||||
Total deposits and other commitments
|
13,334,929 | 11,495,191 | 10,708,791 | 12,704,428 |
Ch$
|
UF
|
Foreign
Currencies
|
Total
|
|||||||||||||
Demand deposits
|
0.01 | % | 0.03 | % | 0.01 | % | 0.02 | % | ||||||||
Savings accounts
|
0.02 | % | 4.76 | % | 0.00 | % | 1.15 | % | ||||||||
Time deposits:
|
||||||||||||||||
Maturing within 3 months
|
85.07 | % | 35.96 | % | 94.83 | % | 74.60 | % | ||||||||
Maturing after 3 but within 6 months
|
9.43 | % | 8.81 | % | 4.08 | % | 8.56 | % | ||||||||
Maturing after 6 but within 12 months
|
3.88 | % | 34.28 | % | 0.53 | % | 10.73 | % | ||||||||
Maturing after 12 months
|
1.59 | % | 16.16 | % | 0.55 | % | 4.94 | % | ||||||||
Total time deposits
|
99.97 | % | 95.21 | % | 99.99 | % | 98.83 | % | ||||||||
Total deposits
|
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Ch$
|
UF
|
Foreign
Currencies
|
Total
|
|||||||||||||
(in millions of Ch$)
|
||||||||||||||||
Time deposits:
|
||||||||||||||||
Maturing within 3 months
|
4,429,100 | 685,170 | 1,035,097 | 6,149,367 | ||||||||||||
Maturing after 3 but within 6 months
|
482,166 | 158,427 | 45,841 | 686,434 | ||||||||||||
Maturing after 6 but within 12 months
|
281,238 | 957,334 | 11,812 | 1,250,384 | ||||||||||||
Maturing after 12 months
|
368 | 23,565 | - | 23,933 | ||||||||||||
Total time deposits
|
5,192,872 | 1,824,496 | 1,092,750 | 8,110,118 |
2011
|
2010
|
2009
|
||||||||||||||||||||||
Balance
|
Weighted-
Average
Nominal
Interest
Rate
|
Balance
|
Weighted-
Average
Nominal
Interest
Rate
|
Balance
|
Weighted-
Average
Nominal
Interest
Rate
|
|||||||||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||||||||||
Obligations arising from repurchase agreements
|
544,381 | 0.4 | % | 294,725 | 0.2 | % | 166,852 | 0.2 | % | |||||||||||||||
Obligations with the Central Bank
|
810 | 0.5 | % | 1,307 | 0.5 | % | 947,753 | 0.5 | % | |||||||||||||||
Loans from domestic financial institutions
|
- | 0.0 | % | - | - | 26,301 | 0.4 | % | ||||||||||||||||
Foreign obligations
|
1,740,254 | 0.5 | % | 1,458,479 | 0.8 | % | 1,812,296 | 0.7 | % | |||||||||||||||
Total short-term borrowings
|
2,285,445 | 0.5 | % | 1,754,511 | 0.7 | % | 2,953,202 | 0.6 | % |
2011
|
2010
|
2009
|
||||||||||||||||||||||
Average Balance
|
Weighted- Average Nominal Interest Rate
|
Average Balance
|
Weighted- Average Nominal Interest Rate
|
Average Balance
|
Weighted- Average Nominal Interest Rate
|
|||||||||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||||||||||
Obligations arising from repurchase agreements
|
249,174 | 3.5 | % | 294,725 | 0.20 | % | 1,114,605 | 0.2 | % | |||||||||||||||
Obligations with the Central Bank
|
3,097 | 6.0 | % | 1,307 | 0.50 | % | 1,850 | 0.5 | % | |||||||||||||||
Loans from domestic financial institutions
|
24,912 | 3.0 | % | - | - | 26,301 | 0.4 | % | ||||||||||||||||
Foreign obligations
|
1,812,802 | 1.3 | % | 1,458,479 | 0.81 | % | 1,812,296 | 0.7 | % | |||||||||||||||
Total short-term borrowings
|
2,089,985 | 1.6 | % | 1,754,511 | 0.71 | % | 2,955,052 | 0.5 | % |
Maximum 2011 Month-End Balance
|
Maximum 2010 Month-End Balance
|
Maximum 2009 Month-End Balance
|
||||||||||
In millions of Ch$
|
||||||||||||
Obligations arising from repurchase agreements
|
544,381 | 1,180,620 | 1,165,241 | |||||||||
Obligations with the Central Bank
|
1,241 | 1,740 | 2,711 | |||||||||
Loans from domestic financial institutions
|
244,071 | 13,923 | 256,717 | |||||||||
Foreign obligations
|
2,024,146 | 2,098,648 | 2,014,913 | |||||||||
Total short-term borrowings
|
2,813,839 | 3,294,931 | 3,439,582 |
As of December 31, 2011
|
||||||||||||
Long-term
|
Short-term
|
Total
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Central Bank credit lines for renegotiations of loans (a)
|
- | 810 | 810 | |||||||||
Investment under repurchase agreements
|
- | 544,381 | 544,381 | |||||||||
Mortgage finance bonds (b)
|
152,536 | 7,707 | 160,243 | |||||||||
Senior bonds (c)
|
2,851,785 | 749,340 | 3,601,125 | |||||||||
Subordinated bonds (d)
|
725,029 | 136,842 | 861,871 | |||||||||
Borrowings from domestic financial institutions
|
- | - | - | |||||||||
Foreign borrowings (e)
|
179,028 | 1,740,254 | 1,919,282 | |||||||||
Other obligations (f)
|
120,521 | 56,078 | 176,599 | |||||||||
Total borrowings
|
4,028,899 | 3,235,412 | 7,264,311 |
As of December 31, 2010
|
||||||||||||
Long-term
|
Short-term
|
Total
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Central Bank credit lines for renegotiations of loans (a)
|
- | 1,307 | 1,307 | |||||||||
Investment under repurchase agreements
|
- | 294,725 | 294,725 | |||||||||
Mortgage finance bonds (b)
|
183,383 | 10,751 | 194,134 | |||||||||
Senior bonds (c)
|
2,763,572 | 547,107 | 3,310,679 | |||||||||
Subordinated bonds (d)
|
664,383 | 21,692 | 686,075 | |||||||||
Borrowings from domestic financial institutions
|
- | - | - | |||||||||
Foreign borrowings (e)p
|
124,271 | 1,458,479 | 1,582,750 | |||||||||
Other obligations (f)
|
122,247 | 44,042 | 166,289 | |||||||||
Total borrowings
|
3,857,856 | 2,378,103 | 6,235,959 |
As of December 31, 2009
|
||||||||||||
Long-term
|
Short-term
|
Total
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Central Bank credit lines for renegotiations of loans (a)
|
- | 1,850 | 1,850 | |||||||||
Investment under repurchase agreements
|
- | 1,114,605 | 1,114,605 | |||||||||
Mortgage finance bonds (b)
|
213,853 | 50,011 | 263,864 | |||||||||
Senior bonds (c)
|
1,901,972 | 166,814 | 2,068,786 | |||||||||
Subordinated bonds (d)
|
592,026 | - | 592,026 | |||||||||
Borrowings from domestic financial institutions
|
- | 26,301 | 26,301 | |||||||||
Foreign borrowings (e)
|
206,343 | 1,812,296 | 2,018,639 | |||||||||
Other obligations (f)
|
109,013 | 37,898 | 146,911 | |||||||||
Total borrowings
|
3,023,207 | 3,209,775 | 6,232,982 |
|
As of December 31, 2011
|
As of December 31, 2010
|
||||||
(in millions of Ch$)
|
||||||||
Due within 1 year
|
810 | 1,307 | ||||||
Total
|
810 | 1,307 |
As of December 31, 2011
|
||||
(in millions of Ch$)
|
||||
Due within 1 year
|
7,707 | |||
Due after 1 year but within 2 years
|
7,535 | |||
Due after 2 years but within 3 years
|
10,333 | |||
Due after 3 years but within 4 years
|
21,122 | |||
Due after 4 years but within 5 years
|
14,010 | |||
Due after 5 years
|
99,536 | |||
Total mortgage finance bonds
|
160,243 |
As of December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Santander bonds denominated in UF
|
2,001,713 | 1,952,051 | 1,660,877 | |||||||||
Santander bonds denominated in US$
|
1,268,763 | 936,134 | 407,909 | |||||||||
Santander bonds denominated in CHF$
|
119,394 | 174,297 | - | |||||||||
Santander bonds denominated in $
|
211,255 | 248,197 | - | |||||||||
Total bonds
|
3,601,125 | 3,310,679 | 2,068,786 |
As of December 31, 2011
|
||||
(in millions of Ch$)
|
||||
Due within 1 year
|
749,340 | |||
Due after 1 year but within 2 years
|
460,200 | |||
Due after 2 years but within 3 years
|
408,723 | |||
Due after 3 years but within 4 years
|
656,201 | |||
Due after 4 years but within 5 years
|
488,425 | |||
Due after 5 years
|
838,236 | |||
Total bonds
|
3,601,125 |
Series
|
Amount
|
Term
|
Issue rate
|
Date of issue
|
Maturity date
|
||
Floating rate bond
|
USD |
500,000,000
|
5 years
|
Libor (3 months) + 160 bp
|
01/19/2011
|
01/19/2016
|
|
Floating rate bond
|
USD |
135,000,000
|
6 months
|
Libor (3 months) + 80 bp
|
11/29/2011
|
05/29/2012
|
|
Totals
|
USD |
635,000,000
|
|||||
E1
|
UF |
896,000
|
5 years
|
3.0 % per annum simple
|
02/01/2011
|
01/01/2016
|
|
E2
|
UF |
3,048,000
|
7.5 years
|
3.5 % per annum simple
|
02/01/2011
|
07/01/2018
|
|
E3
|
UF |
1,750,000
|
8.5 years
|
3.5 % per annum simple
|
02/01/2011
|
07/01/2019
|
|
Totals
|
UF |
5,694,000
|
|||||
E4
|
CLP |
36,900,000,000
|
5 years
|
6.75 % per annum simple
|
07/01/2011
|
06/01/2016
|
|
Totals
|
CLP |
36,900,000,000
|
As of December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Subordinated bonds denominated in US$
|
316,169 | 244,957 | 278,087 | |||||||||
Subordinated bonds linked to the UF
|
545,702 | 441,118 | 313,939 | |||||||||
Total subordinated bonds
|
861,871 | 686,075 | 592,026 |
As of December 31, 2011
|
||||
(in millions of Ch$)
|
||||
Due within 1 year
|
136,842 | |||
Due after 1 year but within 2 years
|
- | |||
Due after 2 years but within 3 years
|
179,327 | |||
Due after 3 years but within 4 years
|
10,567 | |||
Due after 4 years but within 5 years
|
29,616 | |||
Due after 5 years
|
505,519 | |||
Total subordinated bonds
|
861,871 |
Issue
|
Date of issuance
|
Maturity
|
|||||
Series
|
Amount
|
Term
|
rate
|
date
|
date
|
||
G3 |
UF 3,000,000
|
25 years
|
3.9% per annum simple
|
07/01/2010
|
07/01/2035
|
||
G5 |
UF 2,100,000
|
20 years
|
3.9% per annum simple
|
05/01/2011
|
04/01/2031
|
||
Totals
|
UF 5,100,000
|
As of
December 31, 2011
|
||||
(in millions of Ch$)
|
||||
Due within 1 year
|
1,740,254 | |||
Due after 1 year but within 2 years
|
87,102 | |||
Due after 2 years but within 3 years
|
91,926 | |||
Due after 3 years but within 4 years
|
- | |||
Due after 5 years
|
- | |||
Total loans from foreign financial institutions
|
1,919,282 |
As of December 31,
|
||||
2011
|
||||
(in millions of Ch$)
|
||||
Long term obligations
|
||||
Due after 1 years but within 2 years
|
29,575 | |||
Due after 2 years but within 3 years
|
2,866 | |||
Due after 3 years but within 4 years
|
3,489 | |||
Due after 4 years but within 5 years
|
3,095 | |||
Due after 5 years
|
81,496 | |||
Long-term financial obligations subtotals
|
120,521 | |||
Short term obligations:
|
||||
Amounts due to credit card operators
|
50,840 | |||
Acceptance of letters of credit
|
704 | |||
Other long-term financial obligations, short-term portion
|
4,534 | |||
Short-term financial obligations subtotals
|
56,078 | |||
Other financial obligations totals
|
176,599 |
As of December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Issued and documented letters of credit
|
184,649 | 209,532 | 155,956 | |||||||||
Confirmed foreign letters of credit
|
52,889 | 85,739 | 35,818 | |||||||||
Documented guarantees
|
920,986 | 898,751 | 655,780 | |||||||||
Other guarantees
|
147,081 | 166,550 | 169,931 | |||||||||
Subtotals
|
1,305,605 | 1,360,572 | 1,017,485 | |||||||||
Lines of credit with immediate availability
|
4,673,525 | 4,832,359 | 4,615,787 | |||||||||
Other irrevocable obligation
|
95,150 | 129,428 | - | |||||||||
Totals
|
6,074,280 | 6,322,359 | 5,633,272 |
Year Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Land and Buildings
|
8,326 | 7,884 | 5,730 | |||||||||
Machinery and Equipment
|
8,503 | 7,781 | 5,085 | |||||||||
Furniture, Vehicles, Other(1)
|
9,860 | 3,336 | 941 | |||||||||
Total
|
26,689 | 19,001 | 11,756 |
(1)
|
Includes assets ceded under operating leases.
|
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Earned
|
Average
Real Rate
|
Average
Nominal Rate
|
Average
Balance
|
Interest
Earned
|
Average
Real Rate
|
Average
Nominal Rate
|
Average
Balance
|
Interest
Earned
|
Average
Real Rate
|
Average
Nominal Rate
|
|||||||||||||||||||||||||||||||||||||
(in millions of Ch$, except for rate data)
|
||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST-EARNING ASSETS
|
||||||||||||||||||||||||||||||||||||||||||||||||
Deposits in Central Bank
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
497,897 | 16,005 | (1.2 | %) | 3.2 | % | 433,176 | 6,411 | (1.0 | %) | 1.5 | % | 207,738 | 2,652 | 3.9 | % | 1.3 | % | ||||||||||||||||||||||||||||||
UF
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
Subtotal
|
497,897 | 16,005 | (1.2 | %) | 3.2 | % | 433,176 | 6,411 | (1.0 | %) | 1.5 | % | 207,738 | 2,652 | 3.9 | % | 1.3 | % | ||||||||||||||||||||||||||||||
Financial investments
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
1,704,483 | 71,129 | (0.3 | %) | 4.2 | % | 1,055,255 | 25,439 | (0.1 | %) | 2.4 | % | 939,455 | 32,782 | 6.2 | % | 3.5 | % | ||||||||||||||||||||||||||||||
UF
|
220,986 | 21,971 | 5.3 | % | 9.9 | % | 545,775 | 34,602 | 3.7 | % | 6.3 | % | 547,220 | 4,507 | 3.5 | % | 0.8 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
854,965 | (25,201 | ) | 3.5 | % | (2.9 | %) | 652,464 | 12,892 | (8.0 | %) | 2.0 | % | 486,051 | 5,840 | (17.8 | %) | 1.2 | % | |||||||||||||||||||||||||||||
Subtotal
|
2,780,434 | 67,899 | 1.3 | % | 2.5 | % | 2,253,464 | 72,933 | (1.5 | %) | 3.2 | % | 1,972,726 | 43,129 | (0.5 | %) | 2.2 | % | ||||||||||||||||||||||||||||||
Commercial Loans
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
4,491,613 | 409,074 | 4.5 | % | 9.2 | % | 4,024,823 | 313,063 | 5.1 | % | 7.8 | % | 3,624,473 | 375,026 | 13.2 | % | 10.4 | % | ||||||||||||||||||||||||||||||
UF
|
3,268,257 | 272,236 | 3.7 | % | 8.4 | % | 2,791,495 | 192,518 | 4.3 | % | 6.9 | % | 2,822,742 | 111,952 | 6.7 | % | 4.0 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
1,662,095 | 44,586 | 9.5 | % | 2.7 | % | 932,257 | 30,479 | (6.8 | %) | 3.3 | % | 1,053,718 | 53,074 | (14.7 | %) | 5.0 | % | ||||||||||||||||||||||||||||||
Subtotal
|
9,421,965 | 725,896 | 5.1 | % | 7.8 | % | 7,748,575 | 536,060 | 3.4 | % | 6.9 | % | 7,500,933 | 540,052 | 6.9 | % | 7.2 | % | ||||||||||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
2,526,772 | 539,961 | 16.2 | % | 21.4 | % | 2,270,711 | 477,155 | 18.1 | % | 21.0 | % | 2,018,473 | 501,981 | 28.1 | % | 24.9 | % | ||||||||||||||||||||||||||||||
UF
|
96,286 | 9,722 | 5.4 | % | 10.1 | % | 97,905 | 8,209 | 5.7 | % | 8.4 | % | 115,640 | 6,320 | 8.2 | % | 5.5 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
14,374 | – | 6.6 | % | – | % | 10,446 | – | (9.8 | )% | – | % | 8,161 | 1 | (18.8 | %) | – | % | ||||||||||||||||||||||||||||||
Subtotal
|
2,637,432 | 549,683 | 15.8 | % | 20.9 | % | 2,379,062 | 485,364 | 17.5 | % | 20.4 | % | 2,142,274 | 508,302 | 26.9 | % | 23.7 | % | ||||||||||||||||||||||||||||||
Mortgage loans
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
27,811 | 2,626 | 4.8 | % | 9.4 | % | 28,522 | 2,263 | 5.3 | % | 7.9 | % | 6,028 | 535 | 11.7 | % | 8.9 | % | ||||||||||||||||||||||||||||||
UF
|
4,800,402 | 397,408 | 3.7 | % | 8.3 | % | 4,293,315 | 301,864 | 4.4 | % | 7.0 | % | 3,946,434 | 101,804 | 5.3 | % | 2.6 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
Subtotal
|
4,828,213 | 400,034 | 3.7 | % | 8.3 | % | 4,321,837 | 304,127 | 4.4 | % | 7.0 | % | 3,952,462 | 102,339 | 5.3 | % | 2.6 | % | ||||||||||||||||||||||||||||||
Interbank Loans
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
73,505 | 3,486 | 0.3 | % | 4.7 | % | 48,485 | 934 | (0.6 | %) | 1.9 | % | 19,532 | 262 | 4.0 | % | 1.3 | % | ||||||||||||||||||||||||||||||
UF
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
5,206 | – | 6.6 | % | – | % | 1,229 | – | (9.8 | %) | 0.0 | % | 2,521 | – | (18.8 | %) | – | % | ||||||||||||||||||||||||||||||
Subtotal
|
78,711 | 3,486 | 0.7 | % | 4.4 | % | 49,714 | 934 | (0.8 | %) | 1.9 | % | 22,053 | 262 | 1.4 | % | 1.2 | % | ||||||||||||||||||||||||||||||
Investments under agreements to resell
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
23,993 | 3,678 | 10.4 | % | 15.3 | % | 44,969 | 6,256 | 11.1 | % | 13.9 | % | 261,288 | 10,680 | 6.8 | % | 4.1 | % | ||||||||||||||||||||||||||||||
UF
|
35,009 | 1,949 | 1.1 | % | 5.6 | % | 15,898 | 428 | 0.2 | % | 2.7 | % | 852 | 31 | 6.4 | % | 3.6 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
– | – | – | % | – | % | 1,403 | 22 | (8.4 | %) | 1.6 | % | 198 | 6 | (16.4 | %) | 3.0 | % | ||||||||||||||||||||||||||||||
Subtotal
|
59,002 | 5,627 | 4.9 | % | 9.5 | % | 62,270 | 6,706 | 7.9 | % | 10.8 | % | 262,338 | 10,717 | 6.8 | % | 4.1 | % | ||||||||||||||||||||||||||||||
Threshold
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
UF
|
– | – | – | % | – | % | – | – | – | % | – | % | – | – | – | % | – | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
51,385 | 105 | 6.8 | % | 0.2 | % | 231,385 | 448 | (9.6 | %) | 0.2 | % | 205,068 | 325 | (18.7 | %) | 0.2 | % | ||||||||||||||||||||||||||||||
Subtotal
|
51,385 | 105 | 6.8 | % | 0.2 | % | 231,385 | 448 | (9.6 | %) | 0.2 | % | 205,068 | 325 | (18.7 | %) | 0.2 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
9,346,074 | 1,045,959 | 6.5 | % | 11.2 | % | 7,905,911 | 831,521 | 7.8 | % | 10.5 | % | 7,076,987 | 923,918 | 16.0 | % | 13.1 | % | ||||||||||||||||||||||||||||||
UF
|
8,420,940 | 703,286 | 3.7 | % | 8.4 | % | 7,744,388 | 537,621 | 4.3 | % | 6.9 | % | 7,432,888 | 224,614 | 5.7 | % | 3.0 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
2,588,025 | 19,490 | 7.4 | % | 0.8 | % | 1,829,184 | 43,841 | (7.6 | %) | 2.4 | % | 1,755,717 | 59,246 | (16.1 | %) | 3.4 | % | ||||||||||||||||||||||||||||||
Subtotal
|
20,355,039 | 1,768,735 | 5.5 | % | 8.7 | % | 17,479,483 | 1,412,983 | 4.6 | % | 8.1 | % | 16,265,592 | 1,207,778 | 7.8 | % | 7.4 | % |
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Earned
|
Average
Real
Rate
|
Average
Nominal
Rate
|
Average
Balance
|
Interest
Earned
|
Average
Real
Rate
|
Average
Nominal
Rate
|
Average
Balance
|
Interest
Earned
|
Average
Real
Rate
|
Average
Nominal
Rate
|
|||||||||||||||||||||||||||||||||||||
NON-INTEREST-EARNING ASSETS
|
(in millions of Ch$, except for rate data)
|
|||||||||||||||||||||||||||||||||||||||||||||||
Cash
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
448,889 | – | – | – | 421,903 | – | – | – | 398,396 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
16,275 | – | – | – | 13,484 | – | – | – | 14,482 | – | – | – | ||||||||||||||||||||||||||||||||||||
Subtotal
|
465,164 | – | – | – | 435,387 | – | – | – | 412,878 | – | – | – | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
(535,656 | ) | – | – | – | (444,122 | ) | – | – | – | (315,361 | ) | – | – | – | |||||||||||||||||||||||||||||||||
UF
|
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Subtotal
|
(535,656 | ) | – | – | – | (444,122 | ) | – | – | – | (315,361 | ) | – | – | – | |||||||||||||||||||||||||||||||||
Property, plant and equipment
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
159,813 | – | – | – | 176,367 | – | – | – | 215,789 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
40 | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Subtotal
|
159,853 | – | – | – | 176,367 | – | – | – | 215,789 | – | – | – | ||||||||||||||||||||||||||||||||||||
Derivatives
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
1,824,381 | – | – | – | 1,617,480 | – | – | – | 1,708,712 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
(178,373 | ) | – | – | – | (124,606 | ) | – | – | – | (184,072 | ) | – | – | – | |||||||||||||||||||||||||||||||||
Foreign currencies
|
(39,820 | ) | – | – | – | (60,410 | ) | – | – | – | (7,390 | ) | – | – | – | |||||||||||||||||||||||||||||||||
Subtotal
|
1,606,188 | – | – | – | 1,432,464 | – | – | – | 1,517,250 | – | – | – | ||||||||||||||||||||||||||||||||||||
Financial investments trading (1)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
203,886 | – | – | – | 90,605 | – | – | – | 233,977 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
436,435 | – | – | – | 665,607 | – | – | – | 726,009 | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
9,791 | – | – | – | 30,407 | – | – | – | 45,029 | – | – | – | ||||||||||||||||||||||||||||||||||||
Subtotal
|
650,112 | – | – | – | 786,619 | – | – | – | 1,005,015 | – | – | – | ||||||||||||||||||||||||||||||||||||
Other assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
979,549 | – | – | – | 724,156 | – | – | – | 688,310 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
100,291 | – | – | – | 66,279 | – | – | – | 42,584 | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
353,179 | – | – | – | 201,062 | – | – | – | 159,853 | – | – | – | ||||||||||||||||||||||||||||||||||||
Subtotal
|
1,433,019 | – | – | – | 991,497 | – | – | – | 890,747 | – | – | – | ||||||||||||||||||||||||||||||||||||
Total non-interest earning assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
3,080,862 | – | – | – | 2,586,389 | – | – | – | 2,929,823 | – | – | – | ||||||||||||||||||||||||||||||||||||
UF
|
358,393 | – | – | – | 607,280 | – | – | – | 584,521 | – | – | – | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
339,425 | – | – | – | 184,543 | – | – | – | 211,974 | – | – | – | ||||||||||||||||||||||||||||||||||||
Total
|
3,778,680 | – | – | – | 3,378,212 | – | – | – | 3,726,318 | – | – | – | ||||||||||||||||||||||||||||||||||||
TOTAL ASSETS
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
12,426,936 | 1,045,959 | - | - | 10,492,300 | 831,521 | - | - | 10,006,810 | 923,918 | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
8,779,333 | 703,286 | - | - | 8,351,668 | 537,621 | - | - | 8,017,409 | 224,614 | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
2,927,450 | 19,490 | - | - | 2,013,727 | 43,841 | - | - | 1,967,691 | 59,246 | - | - | ||||||||||||||||||||||||||||||||||||
Total
|
24,133,719 | 1,768,735 | - | - | 20,857,695 | 1,412,983 | - | - | 19,991,910 | 1,207,778 | - | - |
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
|||||||||||||||||||||||||||||||||||||
(in millions of Ch$, except for rate data)
|
||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
Savings accounts
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
1,092 | 3 | (4.0 | %) | 0.3 | % | 1,103 | 3 | (2.2 | %) | 0.3 | % | 777 | 11 | 4.1 | % | 1.5 | % | ||||||||||||||||||||||||||||||
UF
|
101,993 | 3,712 | (0.8 | %) | 3.6 | % | 101,629 | 1,231 | (1.3 | %) | 1.2 | % | 99,517 | (1,039 | ) | 1.6 | % | (1.0 | %) | |||||||||||||||||||||||||||||
Foreign currencies
|
- | - | – | % | – | % | - | - | - | % | - | % | - | - | - | % | - | % | ||||||||||||||||||||||||||||||
Subtotal
|
103,085 | 3,715 | 0.8 | % | 3.6 | % | 102,732 | 1,234 | (1.3 | %) | 1.2 | % | 100,294 | (1,028 | ) | 1.6 | % | (1.0 | %) | |||||||||||||||||||||||||||||
Time deposits
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
5,187,931 | 288,282 | 1.1 | % | 5.6 | % | 3,914,178 | 89,808 | (0.2 | %) | 2.3 | % | 4,442,195 | 183,641 | 6.9 | % | 4.1 | % | ||||||||||||||||||||||||||||||
UF
|
2,086,118 | 143,899 | 2.4 | % | 6.9 | % | 2,107,484 | 117,230 | 3.0 | % | 5.6 | % | 2,490,859 | 19,618 | 3.4 | % | 0.8 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
1,833,670 | 13,392 | 7.4 | % | 0.7 | % | 1,460,882 | 12,997 | (9.0 | %) | 0.9 | % | 1,422,392 | 26,614 | (17.3 | %) | 1.9 | % | ||||||||||||||||||||||||||||||
Subtotal
|
9,107,719 | 445,573 | 2.7 | % | 4.9 | % | 7,482,544 | 220,035 | (1.0 | %) | 3.0 | % | 8,355,446 | 229,873 | 1.7 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Central Bank borrowings
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
2,094 | 177 | 3.8 | % | 8.5 | % | 302,807 | 1,648 | (1.9 | %) | 0.5 | % | 295,319 | 2,561 | 3.5 | % | 0.9 | % | ||||||||||||||||||||||||||||||
UF
|
1,003 | 8 | (3.5 | %) | 0.8 | % | 1,485 | 10 | (1.8 | %) | 0.7 | % | 2,027 | (11 | ) | 2.1 | % | (0.5 | %) | |||||||||||||||||||||||||||||
Foreign currencies
|
- | - | – | % | – | % | - | - | - | % | - | % | - | - | - | % | - | % | ||||||||||||||||||||||||||||||
Subtotal
|
3,097 | 185 | 1.4 | % | 6.0 | % | 304,292 | 1,658 | (1.9 | %) | 0.5 | % | 297,346 | 2,550 | 3.5 | % | 0.9 | % | ||||||||||||||||||||||||||||||
Repurchase agreements
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
214,930 | 7,922 | (0.7 | %) | 3.7 | % | 142,572 | 937 | (1.8 | %) | 0.7 | % | 461,168 | 13,454 | 5.6 | % | 2.9 | % | ||||||||||||||||||||||||||||||
UF
|
18,564 | 808 | (0.1 | %) | 4.4 | % | 51,516 | 1,437 | 0.3 | % | 2.8 | % | 23,915 | 429 | 4.5 | % | 1.8 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
15,680 | 31 | 6.8 | % | 0.2 | % | 2,631 | 3 | (9.7 | %) | 0.1 | % | 917 | 1 | (18.7 | %) | 0.1 | % | ||||||||||||||||||||||||||||||
Subtotal
|
249,174 | 8,761 | (0.2 | %) | 3.5 | % | 196,719 | 2,377 | (1.4 | %) | 1.2 | % | 486,000 | 13,884 | 5.5 | % | 2.9 | % | ||||||||||||||||||||||||||||||
Mortgage finance bonds
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
- | - | – | % | – | % | - | - | - | % | - | % | - | - | - | % | - | % | ||||||||||||||||||||||||||||||
UF
|
174,224 | 16,027 | 4.6 | % | 9.2 | % | 224,436 | 17,445 | 5.1 | % | 7.8 | % | 301,501 | 8,391 | 5.5 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
- | - | – | % | – | % | - | - | - | % | - | % | - | - | - | % | - | % | ||||||||||||||||||||||||||||||
Subtotal
|
174,224 | 16,027 | 4.6 | % | 9.2 | % | 224,436 | 17,445 | 5.1 | % | 7.8 | % | 301,501 | 8,391 | 5.5 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Other interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
344,561 | 64,171 | 13.6 | % | 18.6 | % | 167,944 | 30,982 | 15.6 | % | 18.4 | % | 141,415 | 8,173 | 8.6 | % | 5.8 | % | ||||||||||||||||||||||||||||||
UF
|
2,427,992 | 223,895 | 4.6 | % | 9.2 | % | 2,086,698 | 155,009 | 4.8 | % | 7.4 | % | 1,825,455 | 40,171 | 4.9 | % | 2.2 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
3,355,499 | 34,108 | 7.7 | % | 1.0 | % | 2,871,953 | 44,524 | (8.4 | %) | 1.6 | % | 1,942,923 | 49,248 | (16.6 | %) | 2.5 | % | ||||||||||||||||||||||||||||||
Subtotal
|
6,128,052 | 322,174 | 6.8 | % | 5.2 | % | 5,126,595 | 230,515 | (2.2 | %) | 4.5 | % | 3,909,793 | 97,592 | (5.7 | %) | 2.5 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
5,750,608 | 360,555 | 1.8 | % | 6.3 | % | 4,528,604 | 123,378 | 0.2 | % | 2.7 | % | 5,340,874 | 207,840 | 6.6 | % | 3.9 | % | ||||||||||||||||||||||||||||||
UF
|
4,809,894 | 388,349 | 3.5 | % | 8.1 | % | 4,573,248 | 292,362 | 3.8 | % | 6.4 | % | 4,743,274 | 67,559 | 4.1 | % | 1.4 | % | ||||||||||||||||||||||||||||||
Foreign currencies
|
5,204,849 | 47,531 | 7.6 | % | 0.9 | % | 4,335,466 | 57,524 | (8.6 | %) | 1.3 | % | 3,366,232 | 75,863 | (17.0 | %) | 2.3 | % | ||||||||||||||||||||||||||||||
Total
|
15,765,351 | 796,435 | 4.2 | % | 5.1 | % | 13,437,318 | 473,264 | (1.4 | %) | 3.5 | % | 13,450,380 | 351,262 | (0.2 | %) | 2.6 | % |
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
Average Balance
|
Interest Paid
|
Average Real Rate
|
Average Nominal Rate
|
|||||||||||||||||||||||||||||||||||||
(in millions of Ch$, except for rate data)
|
||||||||||||||||||||||||||||||||||||||||||||||||
NON-INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing demand deposits
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
3,546,165 | - | - | - | 3,132,540 | - | - | - | 2,458,860 | - | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
17,115 | - | - | - | 15,226 | - | - | - | 13,039 | - | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
12,264 | - | - | - | 4,747 | - | - | - | 3,151 | - | - | - | ||||||||||||||||||||||||||||||||||||
Subtotal
|
3,575,544 | - | - | - | 3,152,513 | - | - | - | 2,475,050 | - | - | - | ||||||||||||||||||||||||||||||||||||
Derivatives
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
1,389,878 | - | - | - | 1,094,480 | - | - | - | 1,059,863 | - | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
35,145 | - | - | - | 115,981 | - | - | - | 193,392 | - | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
32.615 | - | - | - | 112,700 | - | - | - | 133,771 | - | - | - | ||||||||||||||||||||||||||||||||||||
Subtotal
|
1,457,638 | - | - | - | 1,323,161 | - | - | - | 1,387,026 | - | - | - | ||||||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
637,053 | - | - | - | 526,376 | - | - | - | 512,216 | - | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
279,367 | - | - | - | 350,588 | - | - | - | 287,124 | - | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
424,279 | - | - | - | 315,410 | - | - | - | 280,176 | - | - | - | ||||||||||||||||||||||||||||||||||||
Subtotal
|
1,340,699 | - | - | - | 1,192,374 | - | - | - | 1,079,516 | - | - | - | ||||||||||||||||||||||||||||||||||||
Shareholders’ Equity
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
1,994,487 | - | - | - | 1,752,329 | - | - | - | 1,599,938 | - | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Subtotal
|
1,994,487 | - | - | - | 1,752,329 | - | - | - | 1,599,938 | - | - | - | ||||||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities and shareholder’s equity
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
7,567,583 | - | - | - | 6,505,725 | - | - | - | 5,630,877 | - | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
331,627 | - | - | - | 481,795 | - | - | - | 493,555 | - | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
469,158 | - | - | - | 432,857 | - | - | - | 417,098 | - | - | - | ||||||||||||||||||||||||||||||||||||
Subtotal
|
8,368,368 | - | - | - | 7,420,377 | - | - | - | 6,541,530 | - | - | - | ||||||||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||||||||||||||
Ch$
|
13,318,191 | 360,555 | - | - | 11,034,329 | 123,378 | - | - | 10,971,751 | 207,840 | - | - | ||||||||||||||||||||||||||||||||||||
UF
|
5,141,521 | 388,349 | - | - | 5,055,043 | 292,362 | - | - | 5,236,829 | 67,559 | - | - | ||||||||||||||||||||||||||||||||||||
Foreign currencies
|
5,674,007 | 47,531 | - | - | 4,768,323 | 57,524 | - | - | 3,783,330 | 75,863 | - | - | ||||||||||||||||||||||||||||||||||||
Total
|
24,133,719 | 796,435 | - | - | 20,857,695 | 473,264 | - | - | 19,991,910 | 351,262 | - | - |
Increase (Decrease) from 2010 to 2011
Due to Changes in |
Increase (Decrease) from 2009 to 2010
Due to Changes in |
|||||||||||||||||||||||||||||||
Volume
|
Rate
|
Rate and
Volume
|
Net Change
from 2010 to
2011
|
Volume
|
Rate
|
Rate and
Volume
|
Net Change
from 2009 to
2010
|
|||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||||||||||
Deposits in Central Bank
|
||||||||||||||||||||||||||||||||
Ch$
|
1,024 | 7,417 | 1,153 | 9,594 | 2,917 | 403 | 439 | 3,759 | ||||||||||||||||||||||||
UF
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
1,024 | 7,417 | 1,153 | 9,594 | 2,917 | 403 | 439 | 3,759 | ||||||||||||||||||||||||
Financial investments
|
||||||||||||||||||||||||||||||||
Ch$
|
15,391 | 18,803 | 11,496 | 45,690 | 4,252 | (10,322 | ) | (1,273 | ) | (7,343 | ) | |||||||||||||||||||||
UF
|
(20,503 | ) | 19,606 | (11,734 | ) | (12,631 | ) | 18 | 30,117 | (40 | ) | 30,095 | ||||||||||||||||||||
Foreign currencies
|
3,967 | (32,053 | ) | (10,007 | ) | (38,093 | ) | 1,847 | 3,877 | 1,328 | 7,052 | |||||||||||||||||||||
Total
|
(1,145 | ) | 6,356 | (10,245 | ) | (5,034 | ) | 6,117 | 23,672 | 15 | 29,804 | |||||||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Ch$
|
35,316 | 55,254 | 5,441 | 96,011 | 42,086 | (93,881 | ) | (10,168 | ) | (61,963 | ) | |||||||||||||||||||||
UF
|
32,163 | 41,139 | 6,416 | 79,718 | (950 | ) | 82,160 | (644 | ) | 80,566 | ||||||||||||||||||||||
Foreign currencies
|
24,085 | (5,594 | ) | (4,384 | ) | 14,107 | (6,373 | ) | (18,213 | ) | 1,991 | (22,595 | ) | |||||||||||||||||||
Total
|
91,564 | 90,799 | 7,473 | 189,836 | 34,763 | (29,934 | ) | (8,821 | ) | (3,992 | ) | |||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||
Ch$
|
53,415 | 8,725 | 666 | 62,806 | 63,318 | (78,410 | ) | (9,734 | ) | (24,826 | ) | |||||||||||||||||||||
UF
|
(132 | ) | 1,669 | (24 | ) | 1,513 | (965 | ) | 3,361 | (507 | ) | 1,889 | ||||||||||||||||||||
Foreign currencies
|
- | - | - | - | (1 | ) | - | - | (1 | ) | ||||||||||||||||||||||
Total
|
53,283 | 10,394 | 642 | 64,319 | 62,352 | (75,049 | ) | (10,241 | ) | (22,938 | ) | |||||||||||||||||||||
Mortgage loans
|
||||||||||||||||||||||||||||||||
Ch$
|
(56 | ) | 428 | (9 | ) | 363 | 2,013 | (60 | ) | (225 | ) | 1,728 | ||||||||||||||||||||
UF
|
34,711 | 55,027 | 5,806 | 95,544 | 9,719 | 174,359 | 15,982 | 200,060 | ||||||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
34,655 | 55,455 | 5,797 | 95,907 | 11,732 | 174,299 | 15,757 | 201,788 | ||||||||||||||||||||||||
Interbank loans
|
||||||||||||||||||||||||||||||||
Ch$
|
481 | 1,364 | 707 | 2,552 | 376 | 122 | 174 | 672 | ||||||||||||||||||||||||
UF
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
481 | 1,364 | 707 | 2,552 | 376 | 122 | 174 | 672 | ||||||||||||||||||||||||
Investments Under Agreements to Resell
|
||||||||||||||||||||||||||||||||
Ch$
|
(2,916 | ) | 630 | (292 | ) | (2,578 | ) | (8,861 | ) | 25,616 | (21,179 | ) | (4,424 | ) | ||||||||||||||||||
UF
|
513 | 458 | 550 | 1,521 | 540 | (8 | ) | (135 | ) | 397 | ||||||||||||||||||||||
Foreign currencies
|
(22 | ) | (22 | ) | 22 | (22 | ) | 36 | (3 | ) | (17 | ) | 16 | |||||||||||||||||||
Total
|
(2,425 | ) | 1,066 | 280 | (1,079 | ) | (8,285 | ) | 25,605 | (21,331 | ) | (4,011 | ) | |||||||||||||||||||
Threshold
|
||||||||||||||||||||||||||||||||
Ch$
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
UF
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Foreign currencies
|
(343 | ) | - | - | (343 | ) | 123 | - | - | 123 | ||||||||||||||||||||||
Total
|
(343 | ) | - | - | (343 | ) | 123 | - | - | 123 | ||||||||||||||||||||||
Total interest-earning assets
|
||||||||||||||||||||||||||||||||
Ch$
|
102,655 | 92,621 | 19,162 | 214,438 | 106,101 | (156,532 | ) | (41,966 | ) | (92,397 | ) | |||||||||||||||||||||
UF
|
46,752 | 117,899 | 1,014 | 165,665 | 8,362 | 289,989 | 14,656 | 313,007 | ||||||||||||||||||||||||
Foreign currencies
|
27,687 | (37,669 | ) | (14,369 | ) | (24,351 | ) | (4,368 | ) | (14,339 | ) | 3,302 | (15,405 | ) | ||||||||||||||||||
Total
|
177,094 | 172,851 | 5,807 | 355,752 | 110,095 | 119,118 | (24,008 | ) | 205,205 |
Increase (Decrease) from 2010 to 2011 Due to Changes in
|
Increase (Decrease) from 2009 to 2010 Due to Changes in
|
|||||||||||||||||||||||||||||||
Volume
|
Rate
|
Rate and
Volume
|
Net Change
from 2010 to
2011
|
Volume
|
Rate
|
Rate and
Volume
|
Net Change
from 2009 to
2010
|
|||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||
Savings accounts
|
||||||||||||||||||||||||||||||||
Ch$
|
- | - | - | - | 5 | (9 | ) | (4 | ) | (8 | ) | |||||||||||||||||||||
UF
|
13 | 2,449 | 19 | 2,481 | 29 | 2,195 | 46 | 2,270 | ||||||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
13 | 2,449 | 19 | 2,481 | 34 | 2,186 | 42 | 2,262 | ||||||||||||||||||||||||
Time deposits
|
||||||||||||||||||||||||||||||||
Ch$
|
28,622 | 128,493 | 41,359 | 198,474 | (22,649 | ) | (80,460 | ) | 9,276 | (93,833 | ) | |||||||||||||||||||||
UF
|
(948 | ) | 27,646 | (29 | ) | 26,669 | (3,267 | ) | 119,361 | (18,482 | ) | 97,612 | ||||||||||||||||||||
Foreign currencies
|
3,591 | (2,686 | ) | (510 | ) | 395 | 931 | (14,164 | ) | (384 | ) | (13,617 | ) | |||||||||||||||||||
Total
|
31,265 | 153,453 | 40,820 | 225,538 | (24,985 | ) | 24,737 | (9,590 | ) | (9,838 | ) | |||||||||||||||||||||
Central Bank borrowings
|
||||||||||||||||||||||||||||||||
Ch$
|
(1,549 | ) | 24,180 | (24,102 | ) | (1,471 | ) | 167 | (1,081 | ) | 1 | (913 | ) | |||||||||||||||||||
UF
|
(3 | ) | 1 | - | (2 | ) | 4 | 24 | (7 | ) | 21 | |||||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
(1,552 | ) | 24,181 | (24,102 | ) | (1,473 | ) | 171 | (1,057 | ) | (6 | ) | (892 | ) | ||||||||||||||||||
Repurchase agreements
|
||||||||||||||||||||||||||||||||
Ch$
|
517 | 4,287 | 2,181 | 6,985 | (9,339 | ) | (10,177 | ) | 6,999 | (12,517 | ) | |||||||||||||||||||||
UF
|
(924 | ) | 823 | (528 | ) | (629 | ) | 493 | 239 | 276 | 1,008 | |||||||||||||||||||||
Foreign currencies
|
13 | 3 | 12 | 28 | 2 | - | - | 2 | ||||||||||||||||||||||||
Total
|
(394 | ) | 5,113 | 1,666 | 6,384 | (8,844 | ) | (9,938 | ) | 7,275 | (11,507 | ) | ||||||||||||||||||||
Mortgage finance bonds
|
||||||||||||||||||||||||||||||||
Ch$
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
UF
|
(3,898 | ) | 3,162 | (682 | ) | (1,418 | ) | (2,168 | ) | 15,075 | (3,853 | ) | 9,054 | |||||||||||||||||||
Foreign currencies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
(3,898 | ) | 3,162 | (682 | ) | (1,418 | ) | (2,168 | ) | 15,075 | (3,853 | ) | 9,054 | |||||||||||||||||||
Other interest-bearing liabilities
|
||||||||||||||||||||||||||||||||
Ch$
|
32,498 | 336 | 355 | 33,189 | 1,589 | 17,868 | 3,352 | 22,809 | ||||||||||||||||||||||||
UF
|
25,232 | 37,536 | 6,118 | 68,886 | 6,047 | 95,204 | 13,587 | 114,838 | ||||||||||||||||||||||||
Foreign currencies
|
8,397 | (16,572 | ) | (2,241 | ) | (10,416 | ) | 22,666 | (18,029 | ) | (9,361 | ) | (4,724 | ) | ||||||||||||||||||
Total
|
66,127 | 21,300 | 4,232 | 91,659 | 30,302 | 95,043 | 7,578 | 132,923 | ||||||||||||||||||||||||
Total interest-bearing liabilities
|
||||||||||||||||||||||||||||||||
Ch$
|
60,088 | 157,296 | 19,793 | 237,177 | (30,227 | ) | (73,859 | ) | 19,624 | (84,462 | ) | |||||||||||||||||||||
UF
|
19,472 | 71,617 | 4,898 | 95,987 | 1,138 | 232,098 | (8,433 | ) | 224,803 | |||||||||||||||||||||||
Foreign currencies
|
12,001 | (19,255 | ) | (2,739 | ) | (9,993 | ) | 23,599 | (32,193 | ) | (9,745 | ) | (18,339 | ) | ||||||||||||||||||
Total
|
91,561 | 209,658 | 21,952 | 323,171 | (5,490 | ) | 126,046 | 1,446 | 122,002 |
Year ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in millions of Ch$)
|
||||||||||||
Total average interest-earning assets
|
||||||||||||
Ch$
|
9,346,074 | 7,905,911 | 7,076,987 | |||||||||
UF
|
8,420,940 | 7,744,388 | 7,432,888 | |||||||||
Foreign currencies
|
2,588,025 | 1,829,184 | 1,755,717 | |||||||||
Total
|
20,355,039 | 17,479,483 | 16,265,592 | |||||||||
Net interest earned (1)
|
||||||||||||
Ch$
|
685,404 | 708,143 | 716,078 | |||||||||
UF
|
314,937 | 245,259 | 157,055 | |||||||||
Foreign currencies
|
(28,041 | ) | (13,683 | ) | (16,617 | ) | ||||||
Total
|
972,300 | 939,719 | 856,516 | |||||||||
Net interest margin (2)
|
||||||||||||
Ch$
|
7.3 | % | 9.0 | % | 10.1 | % | ||||||
UF
|
3.7 | % | 3.2 | % | 2.1 | % | ||||||
Foreign currencies
|
(1.1 | %) | (0.7 | %) | (0.9 | %) | ||||||
Total
|
4.8 | % | 5.4 | % | 5.3 | % |
(1)
|
Net interest earned is defined as interest revenue earned less interest expense incurred.
|
(2)
|
Net interest margin is defined as net interest earned divided by total average interest-earning assets.
|
Year ended December 31,
|
||||||||||||
Ch$ million
|
2011
|
2010
|
2009
|
|||||||||
Net income
|
406,664 | 507,472 | 436,610 | |||||||||
Net income attributable to shareholders
|
401,733 | 505,393 | 431,557 | |||||||||
Average total assets
|
24,133,719 | 20,857,695 | 19,991,910 | |||||||||
Average equity
|
1,994,487 | 1,752,329 | 1,599,938 | |||||||||
Net income as a percentage of:
|
||||||||||||
Average total assets
|
1.7 | % | 2.4 | % | 2.2 | % | ||||||
Average equity
|
20.4 | % | 29.0 | % | 27.3 | % | ||||||
Average equity as a percentage of:
|
||||||||||||
Average total assets
|
8.3 | % | 8.4 | % | 8.0 | % | ||||||
Proposed cash dividend (1)
|
261,050 | 286,294 | 258,752 | |||||||||
Dividend payout ratio, based on net income attributable to shareholders (1)
|
65.0 | % | 56.6 | % | 60.0 | % |
(1)
|
Dividend proposed by the Board for shareholders’ approval on April 24, 2012. This was calculated according to local Chilean Bank GAAP.
|
Year
|
Dividend
Ch$ mn (1)
|
Per share
Ch$/share (2)
|
Per ADR
Ch$/ADR (3)
|
% over
earnings (4)
|
% over
earnings (5)
|
|||||||||||||||
2009
|
213,295 | 1.13 | 1,176.00 | 65 | 52 | |||||||||||||||
2010
|
258,752 | 1.37 | 1,426.63 | 60 | 60 | |||||||||||||||
2011
|
286,294 | 1.52 | 1,578.48 | 60 | 57 | |||||||||||||||
2012
|
261,050 | 1.39 | 1,439.09 | 60 | 65 |
(1)
|
Millions of nominal pesos.
|
(2)
|
Calculated on the basis of 188,446 million shares.
|
(3)
|
Calculated on the basis of 1,039 shares per ADS.
|
(4)
|
Calculated by dividing dividend paid in the year by net income attributable to shareholders for the previous year under Chilean GAAP.
|
(5)
|
Calculated by dividing dividend paid in the year by net income attributable to shareholders for the previous year under IFRS.
|
As of December 31, | ||||||||||||||
2011
|
2010
|
2009
|
|
|||||||||||
(in millions of Ch$)
|
||||||||||||||
Commercial Loans:
|
||||||||||||||
Commercial loans
|
6,602,372 | 6,107,117 | 5,489,595 | |||||||||||
Foreign trade loans
|
1,042,024 | 783,552 | 636,328 | |||||||||||
Loans with mortgage guarantee
|
132,383 | 67,956 | 92,911 | |||||||||||
Factoring operations
|
188,630 | 206,140 | 130,272 | |||||||||||
Leasing contracts
|
1,237,675 | 1,122,916 | 964,698 | |||||||||||
Other loans and accounts receivables from customers
|
84,501 | 17,948 | 10,958 | |||||||||||
Subtotal
|
9,287,585 | 8,305,629 | 7,324,762 | |||||||||||
Mortgage loans:
|
||||||||||||||
Draft loans
|
71,878 | 184,364 | 175,592 | |||||||||||
Mortgage finance bonds
|
113,858 | 138,094 | 199,139 | |||||||||||
Other mortgage mutual loans
|
4,929,927 | 4,328,679 | 3,784,322 | |||||||||||
Leasing contracts
|
- | - | - | |||||||||||
Other loans and accounts receivables from customers
|
- | - | - | |||||||||||
Subtotal
|
5,115,663 | 4,651,137 | 4,159,053 | |||||||||||
Consumer loans:
|
||||||||||||||
Installment consumer loans
|
1,808,594 | 1,604,603 | 1,378,044 | |||||||||||
Credit card loans
|
920,852 | 794,216 | 586,937 | |||||||||||
Consumer leasing contracts
|
3,727 | 3,735 | 3,835 | |||||||||||
Other consumer loans
|
210,673 | 298,236 | 275,233 | |||||||||||
Subtotal
|
2,943,846 | 2,700,790 | 2,244,049 | |||||||||||
Subtotal Loans to customers
|
17,347,094 | 15,657,556 | 13,727,864 | |||||||||||
Interbank loans
|
87,688 | 69,726 | 23,412 | |||||||||||
Total
|
17,434,782 | 15,727,282 | 13,751,276 |
Due in 1 year or less
|
Due after 1 year through 5 years
|
Due after 5 years
|
Total balance at December 31, 2011
|
|||||||||||||
(in millions of Ch$)
|
||||||||||||||||
General commercial loans
|
3,003,508 | 2,713,388 | 1,352,305 | 7,069,201 | ||||||||||||
Foreign trade loans
|
798,814 | 113,615 | 58,662 | 971,091 | ||||||||||||
Leasing contracts
|
297,122 | 593,390 | 350,221 | 1,240,733 | ||||||||||||
Other outstanding loans
|
6,560 | - | - | 6,560 | ||||||||||||
Subtotal commercial loans
|
4,106,004 | 3,420,393 | 1,761,188 | 9,287,585 | ||||||||||||
Residential loans backed by mortgage bonds
|
23,231 | 74,883 | 46,513 | 144,627 | ||||||||||||
Other residential mortgage loans
|
283,338 | 916,967 | 3,770,731 | 4,971,036 | ||||||||||||
Subtotal residential mortgage loans
|
306,569 | 991,850 | 3,817,244 | 5,115,663 | ||||||||||||
Consumer loans
|
1,533,072 | 1,290,758 | 120,016 | 2,943,846 | ||||||||||||
Subtotal
|
5,945,645 | 5,703,001 | 5,698,448 | 17,347,094 | ||||||||||||
Interbank loans
|
87,688 | - | - | 87,688 | ||||||||||||
Total loans
|
6,033,333 | 5,703,001 | 5,698,448 | 17,434,782 |
As of December 31, 2011
|
||||
(in millions of Ch$)
|
||||
Variable Rate
|
||||
Ch$
|
- | |||
UF
|
2,121,469 | |||
Foreign currencies
|
208 | |||
Subtotal
|
2,121,677 | |||
Fixed Rate
|
||||
Ch$
|
3,203,179 | |||
UF
|
5,416,458 | |||
Foreign currencies
|
670,008 | |||
Subtotal
|
9,289,645 | |||
Total
|
11,411,322 |
Domestic loans (*) as of December 31,
|
Foreign loans as of December 31,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Manufacturing
|
834,011 | 838,324 | 640,395 | 937,305 | - | – | – | – | ||||||||||||||||||||||||
Mining
|
266,442 | 106,119 | 67,057 | 323,269 | - | – | – | – | ||||||||||||||||||||||||
Electricity, gas and water
|
221,039 | 149,907 | 144,386 | 207,542 | - | – | – | – | ||||||||||||||||||||||||
Agriculture and livestock
|
760,527 | 679,159 | 610,909 | 647,897 | - | – | – | – | ||||||||||||||||||||||||
Forestry
|
89,353 | 84,375 | 71,085 | 88,554 | - | – | – | – | ||||||||||||||||||||||||
Fishing
|
144,162 | 133,930 | 127,025 | 170,934 | - | – | – | – | ||||||||||||||||||||||||
Transport
|
473,414 | 449,508 | 362,508 | 423,856 | - | – | – | – | ||||||||||||||||||||||||
Communications
|
252,528 | 214,881 | 164,077 | 192,750 | - | – | – | – | ||||||||||||||||||||||||
Construction
|
980,797 | 839,316 | 817,293 | 887,391 | - | – | – | – | ||||||||||||||||||||||||
Commerce
|
1,916,400 | 1,732,800 | 1,650,903 | 2,219,987 | 87,041 | 69,709 | 23,409 | 95,534 | ||||||||||||||||||||||||
Services
|
384,061 | 358,314 | 288,256 | 395,840 | - | – | – | – | ||||||||||||||||||||||||
Other
|
2,965,498 | 2,719,013 | 2,380,871 | 1,860,535 | - | – | – | – | ||||||||||||||||||||||||
Subtotals
|
9,288,232 | 8,305,646 | 7,324,765 | 8,355,860 | 87,041 | 69,709 | 23,409 | 95,534 | ||||||||||||||||||||||||
Mortgage loans
|
5,115,663 | 4,651,137 | 4,159,053 | 3,980,556 | - | – | – | – | ||||||||||||||||||||||||
Consumer loans
|
2,943,846 | 2,700,790 | 2,244,049 | 2,249,138 | - | – | – | – | ||||||||||||||||||||||||
Total
|
17,347,741 | 15,657,573 | 13,727,867 | 14,585,554 | 87,041 | 69,709 | 23,409 | 95,534 |
Total loans as of December 31,
|
% of total loans as of December 31,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Manufacturing
|
834,011 | 838,324 | 640,395 | 937,305 | 4.78 | % | 5.33 | % | 4.66 | % | 6.39 | % | ||||||||||||||||||||
Mining
|
266,442 | 106,119 | 67,057 | 323,269 | 1.53 | % | 0.67 | % | 0.49 | % | 2.21 | % | ||||||||||||||||||||
Electricity, gas and water
|
221,039 | 149,907 | 144,386 | 207,542 | 1.27 | % | 0.95 | % | 1.05 | % | 1.41 | % | ||||||||||||||||||||
Agriculture and livestock
|
760,527 | 679,159 | 610,909 | 647,897 | 4.36 | % | 4.32 | % | 4.44 | % | 4.40 | % | ||||||||||||||||||||
Forestry
|
89,353 | 84,375 | 71,085 | 88,554 | 0.51 | % | 0.54 | % | 0.52 | % | 0.60 | % | ||||||||||||||||||||
Fishing
|
144,162 | 133,930 | 127,025 | 170,934 | 0.83 | % | 0.85 | % | 0.93 | % | 1.16 | % | ||||||||||||||||||||
Transport
|
473,414 | 449,508 | 362,508 | 423,856 | 2.72 | % | 2.86 | % | 2.64 | % | 2.89 | % | ||||||||||||||||||||
Communications
|
252,528 | 214,881 | 164,077 | 192,750 | 1.45 | % | 1.37 | % | 1.20 | % | 1.31 | % | ||||||||||||||||||||
Construction
|
980,797 | 839,316 | 817,293 | 887,391 | 5.63 | % | 5.34 | % | 5.95 | % | 6.04 | % | ||||||||||||||||||||
Commerce
|
2,003,441 | 1,802,509 | 1,674,312 | 2,315,521 | 11.49 | % | 11.46 | % | 12.03 | % | 15.78 | % | ||||||||||||||||||||
Services
|
384,061 | 358,314 | 288,256 | 395,840 | 2.20 | % | 2.28 | % | 2.10 | % | 2.70 | % | ||||||||||||||||||||
Other
|
2,965,498 | 2,719,013 | 2,380,871 | 1,860,535 | 17.00 | % | 17.29 | % | 17.34 | % | 12.68 | % | ||||||||||||||||||||
Subtotals
|
9,375,273 | 8,375,355 | 7,348,174 | 8,451,394 | 53.77 | % | 53.26 | % | 53.35 | % | 57.57 | % | ||||||||||||||||||||
Mortgage loans
|
5,115,663 | 4,651,137 | 4,159,053 | 3,980,556 | 29.35 | % | 29.57 | % | 30.30 | % | 27.11 | % | ||||||||||||||||||||
Consumer loans
|
2,943,846 | 2,700,790 | 2,244,049 | 2,249,138 | 16.88 | % | 17.17 | % | 16.35 | % | 15.32 | % | ||||||||||||||||||||
Total
|
17,434,782 | 15,727,282 | 13,751,276 | 14,681,088 | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Approved By
|
Maximum approval in
Thousands of US$ |
|||
Executive Credit Committee
|
>40,000
|
|||
Loan Credit Committee
|
40,000 | |||
Business Segment Committee
|
8,000-10,000 | |||
Large Companies
|
10,000 | |||
Real estate sector
|
10,000 | |||
Medium-sized companies
|
8,000 | |||
Regional Committee
|
5,000 | |||
Branch committee
|
300 | |||
Companies
|
300 | |||
Mortgage
|
120 | |||
Persons
|
30 |
Approved By
|
Non-Mortgage Loans
Up to Ch$ million
|
|||
Corporate Manager of Standardized Risk
|
300 | |||
Manager Approval Center
|
150 | |||
Segment Risk Manager
|
100 | |||
Risk Manager
|
80 | |||
Senior Analyst
|
40 | |||
Junior Analyst
|
10 |
Approved by:
|
Mortgage Loans
Up to UF
|
|||
Corporate Manager of Standardized Risk
|
20,000 | |||
Admissions Manager
|
14,000 | |||
Segment Risk Manager
|
9,000 | |||
Risk Manager
|
9,000 | |||
Senior Analyst
|
5,000 | |||
Junior Analyst
|
3,000 |
Approved By
|
Non-Mortgage Loans
Up to Ch$ million
|
|||
Corporate Manager of Standardized Risk
|
300 | |||
Manager Approval Center
|
150 | |||
Segment Risk Manager
|
20 | |||
Risk Manager
|
15 | |||
Risk Analyst
|
6 |
Approved By
|
Mortgage Loans
Up to UF
|
|||
Corporate Manager of Standardized Risk
|
20,000 | |||
Admissions Manager
|
14,000 | |||
Segment Risk Manager
|
4,000 | |||
Risk Manager
|
2,500 | |||
Risk Analyst
|
1,500 |
EIL = PNP x EXP x SEV
|
|
EIL |
= Estimated Incurred Loss
|
PNP |
= Probability of Non-Performing
|
EXP |
= Exposure
|
SEV |
= Severity
|
|
1.
|
Normal debtors, which are classified as A1, A2, A3 or B, are current on their payment obligations and show no sign of deterioration in their credit quality
|
|
·
|
Classifications A1, A2 and A3 correspond to borrowers with no apparent credit risk.
|
|
·
|
Classification B corresponds to borrowers with some credit risk but no apparent deterioration of payment capacity.
|
|
2.
|
Deteriorated, which are classified as C1, C2, C3, C3, C4, D1 or D2, include debtors whose loan balances with us of 5% or more have been non-performing for more than three months, whose loans with us have been charged off or administered by our Recovery Unit, or classified as Precontenciosos (PRECO or Deteriorated).
|
|
1.
|
Normal debtors: Classifications A1, A2 and A3 correspond to borrowers with no apparent credit risk.
|
|
2.
|
Substandard debtors: Classification B1 – B4 or substandard corresponds to borrowers with some credit risk but no apparent deterioration of payment capacity.
|
|
3.
|
Deteriorated debtors: Classification C1, C2, C3, C4, C5 and C6 correspond to borrowers whose loans have deteriorated.
|
Classification
|
Category
|
PNP (%)
|
Normal
|
A1
|
0,04
|
A2
|
0,10
|
|
A3
|
0,25
|
|
A4
|
2,00
|
|
A5
|
4,75
|
|
A6
|
10,00
|
|
Sub-standard
|
B1
|
15,00
|
B2
|
22,00
|
|
B3
|
33,00
|
|
B4
|
45,00
|
Classification
|
Estimated range of loss
|
Provision
|
C1
|
Up to 3%
|
2%
|
C2
|
Greater than 3% up to 20%
|
10%
|
C3
|
Greater than 20% up to 30%
|
25%
|
C4
|
Greater tan 30% up to 50%
|
40%
|
C5
|
Greater than 50% up to 80%
|
65%
|
C6
|
Greater than 80%
|
90%
|
Previous model
Residential mortgage loans
|
Overdue days
|
||||||||||||||||||||||||||||
1-30 | 31-60 | 61-120 | 121-180 | 181-360 | 361- 720 |
>720
|
|||||||||||||||||||||||
Mortgage
|
Profile 1
|
0.3 | % | 0.5 | % | 1.2 | % | 2.4 | % | 6.8 | % | 14.1 | % | 28.3 | % | ||||||||||||||
Profile 2
|
1.5 | % | 1.6 | % | 2.5 | % | 4.4 | % | 6.8 | % | 14.1 | % | 28.3 | % |
New model - Residential mortgage loans
|
Performing
|
Overdue days
|
|||||||||||||||||||
1-29 | 30-59 | 60-89 |
>90 days
|
||||||||||||||||||
Mortgage (Bank client)
|
New client
|
0.20 | % | 2.7 | % | 3.6 | % | 4.63 | % | 11.0 | % | ||||||||||
Existing client
|
0.29 | % | 1.49 | % | 2.97 | % | 3.7 | % | 11.0 | % | |||||||||||
Renegotiated client
|
1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | 11.0 | % | |||||||||||
Mortgage (Banefe client)
|
New or existing client
|
0.35 | % | 2.19 | % | 3.64 | % | 4.72 | % | 11.0 | % | ||||||||||
Renegotiated client
|
1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | 11.0 | % |
EIL = EXP X PNP x SEV
|
|
EIL |
= Estimated Incurred Loss
|
PNP |
= Probability of Non-Performing
|
EXP |
= Exposure
|
SEV |
= Severity
|
December 31,
|
||||||||||||||||||
2011
|
2010
|
|||||||||||||||||
Category
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||||
MCh$
|
%
|
MCh$
|
%
|
|||||||||||||||
A1 | 109,771 | 0.63 | 15,531 | 0.10 | ||||||||||||||
A2 | 1,401,030 | 8.04 | 1,372,410 | 8.73 | ||||||||||||||
A3 | 2,371,890 | 13.60 | 1,965,638 | 12.50 | ||||||||||||||
A4 | 1,555,956 | 8.92 | 1,246,939 | 7.93 | ||||||||||||||
A5 | 510,164 | 2.93 | 481,883 | 3.06 | ||||||||||||||
A6 | 307,875 | 1.77 | 164,078 | 1.04 | ||||||||||||||
B1 | 136,783 | 0.78 | 86,100 | 0.55 | ||||||||||||||
B2 | 67,467 | 0.39 | 81,624 | 0.52 | ||||||||||||||
B3 | 45,330 | 0.26 | 100,301 | 0.64 | ||||||||||||||
B4 | 19,680 | 0.11 | 47,955 | 0.30 | ||||||||||||||
C1 | 28,888 | 0.17 | 20,300 | 0.13 | ||||||||||||||
C2 | 26,896 | 0.15 | 59,169 | 0.38 | ||||||||||||||
C3 | 47,494 | 0.27 | 56,430 | 0.36 | ||||||||||||||
C4 | 40,879 | 0.23 | 57,153 | 0.36 | ||||||||||||||
C5 | 36,163 | 0.21 | 47,900 | 0.30 | ||||||||||||||
C6 | 40,600 | 0.23 | 54,921 | 0.35 | ||||||||||||||
Totals
|
6,746,866 | 38.69 | 5,858,332 | 37.25 |
2011
|
2010
|
|||||||||||||||
Amount
|
Percentage
|
Amount
|
Percentage
|
|||||||||||||
MCh$
|
%
|
MCh$
|
%
|
|||||||||||||
Commercial
|
||||||||||||||||
Normal
|
2,212,368 | 12.69 | 2,072,341 | 13.18 | ||||||||||||
Impaired
|
416,039 | 2.39 | 444,682 | 2.83 | ||||||||||||
Subtotals
|
2,628,407 | 15.08 | 2,517,023 | 16.01 | ||||||||||||
Mortgage
|
||||||||||||||||
Normal
|
4,915,967 | 28.20 | 4,508,491 | 28.66 | ||||||||||||
Impaired
|
199,696 | 1.15 | 142,646 | 0.91 | ||||||||||||
Subtotals
|
5,115,663 | 29.35 | 4,651,137 | 29.57 | ||||||||||||
Consumer
|
||||||||||||||||
Normal
|
2,522,156 | 14.46 | 2,251,771 | 14.31 | ||||||||||||
Impaired
|
421,690 | 2.42 | 449,019 | 2.86 | ||||||||||||
Subtotals
|
2,943,846 | 16.88 | 2,700,790 | 17.17 | ||||||||||||
Total
|
17,434,782 | 100.00 | 15,727,282 | 100.00 |
As of December 31, 2009
|
||||||||||||||||||||
Category
|
Commercial Loans
|
Consumer Loans
|
Residential Mortgage Loans
|
Total Loans
|
Percentage Evaluated Loans
|
|||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
A
|
– | 1,895,241 | – | 1,895,241 | 13.8 | % | ||||||||||||||
A1
|
– | – | – | – | – | |||||||||||||||
A2
|
3,187,959 | – | 3,808,195 | 6,996,154 | 50.9 | % | ||||||||||||||
A3
|
2,998,956 | – | 223,928 | 3,222,884 | 23.5 | % | ||||||||||||||
B
|
601,080 | 165,181 | 10,481 | 776,742 | 5.5 | % | ||||||||||||||
B-
|
– | 69,150 | – | 69,150 | 0.5 | % | ||||||||||||||
C
|
– | 74,735 | 3,636 | 78,371 | 0.6 | % | ||||||||||||||
C1
|
224,732 | – | 18,101 | 242,833 | 1.8 | % | ||||||||||||||
C2
|
97,885 | – | 8,640 | 106,525 | 0.8 | % | ||||||||||||||
C3
|
60,679 | – | 2,012 | 62,691 | 0.4 | % | ||||||||||||||
C4
|
56,985 | – | 27,294 | 84,279 | 0.6 | % | ||||||||||||||
D
|
– | 39,742 | – | 39,742 | 0.3 | % | ||||||||||||||
D1
|
80,574 | – | 42,438 | 123,012 | 0.9 | % | ||||||||||||||
D2
|
39,324 | – | 14,328 | 53,652 | 0.4 | % | ||||||||||||||
Totals
|
7,348,174 | 2,244,049 | 4,159,053 | 13,751,276 | 100.0 | % |
As of December 31, 2008
|
||||||||||||||||||||
Category
|
Commercial Loans
|
Consumer Loans
|
Residential Mortgage Loans
|
Total Loans
|
Percentage Evaluated Loans
|
|||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
A
|
– | 1,811,060 | 3,562,617 | 5,373,677 | 36.7 | % | ||||||||||||||
A1
|
– | – | – | – | – | % | ||||||||||||||
A2
|
6,463,445 | – | – | 6,463,445 | 44.0 | % | ||||||||||||||
A3
|
1,351,054 | – | – | 1,351,054 | 9.2 | % | ||||||||||||||
B
|
208,954 | 203,375 | 199,087 | 611,416 | 4.2 | % | ||||||||||||||
B-
|
– | 75,281 | 79,930 | 155,211 | 1.1 | % | ||||||||||||||
C
|
– | 94,507 | 64,972 | 159,479 | 1.1 | % | ||||||||||||||
C1
|
220,434 | – | – | 220,434 | 1.5 | % | ||||||||||||||
C2
|
26,738 | – | – | 26,738 | 0.2 | % | ||||||||||||||
C3
|
34,296 | – | – | 34,296 | 0.2 | % | ||||||||||||||
C4
|
36,100 | – | – | 36,100 | 0.2 | % | ||||||||||||||
D
|
– | 64,915 | 73,950 | 138,865 | 0.9 | % | ||||||||||||||
D1
|
48,711 | – | – | 48,711 | 0.3 | % | ||||||||||||||
D2
|
61,662 | – | – | 61,662 | 0.4 | % | ||||||||||||||
Total loans
|
8,451,394 | 2,249,138 | 3,980,556 | 14,681,088 | 100.0 | % |
Type of contract
|
Term
|
|
Leasing Operations
|
||
Consumer leasing
|
6 months
|
|
Other leasing operations
|
12 months
|
|
Property leasing (commercial or residential)
|
36 months
|
|
Other Operations
|
||
Consumer credits with or without real guarantees
|
6 months
|
|
Other operations without real guarantees
|
24 months
|
|
Commercial credits with real guarantees
|
36 months
|
|
Mortgage loans for housing
|
48 months
|
As of December 31
|
||||||||||||||||
2011
|
2010 |
2009
|
2008
|
|||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||
Past due loans(1)
|
237,573 | 206,601 | 193,250 | 160,824 | ||||||||||||
Non-performing loans(2)
|
511,357 | 416,739 | 409,067 | 383,458 | ||||||||||||
Impaired loans (3)
|
1,323,355 | 1,480,476 | 1,485,737 | 870,259 | ||||||||||||
Allowance for loan losses(4)
|
488,468 | 425,447 | 349,527 | 274,240 | ||||||||||||
Total loans(5)
|
17,434,782 | 15,727,282 | 13,751,276 | 14,681,088 | ||||||||||||
Past due loans expressed as a percentage of total loans
|
1.36 | % | 1.31 | % | 1.41 | % | 1.10 | % | ||||||||
Allowance for loan losses / loans
|
2.80 | % | 2.71 | % | 2.54 | % | 1.87 | % | ||||||||
Non-performing loans as a percentage of total loans
|
2.93 | % | 2.65 | % | 2.97 | % | 2.61 | % | ||||||||
Loan loss allowance as a percentage of past due loans
|
205.61 | % | 205.93 | % | 180.87 | % | 170.52 | % | ||||||||
Loan loss allowance as a percentage of non-performing loans
|
95.52 | % | 102.09 | % | 85.44 | % | 71.52 | % |
(1)
|
All installments and lines of credit more than 90 days overdue. Does not include the aggregate principal amount of such loans.
|
(2)
|
Non-performing loans include the principal and interest of any loan with one installment that is 90 days overdue, and do not accrue interest.
|
(3)
|
Impaired loans as of December 31, 2008 include: (i) all non-performing loans, (ii) all renegotiated consumer loans, and (iii) all commercial loans that are at risk of default. In 2009 and 2010, impaired loans include: (A) for loans whose allowance is determined on an individual basis, impaired loans include: (i) all loans to a debtor that are rated C1 through D2 and (ii) total loans to single debtors with a loan that is non-performing; and (B) for loans whose loan loss allowance is determined on a group basis, impaired loans include: (i) total loans to a debtor, when a loan to that debtor is non-performing or has been renegotiated, excluding performing residential mortgage loans and (ii) if the loan that is non-performing or renegotiated is a residential mortgage loan, all loans to that debtor are considered impaired. In 2011, impaired loans include: (A) for loans whose allowance is determined on an individual basis, impaired loans include: (i) all loans to a debtor that are rated B3 and B4 and all deteriorated debtors and (ii) total loans to single debtors with a loan that is non-performing; and (B) for loans whose loan loss allowance is determined on a group basis, impaired loans include: (i) total loans to a debtor, when a loan to that debtor is non-performing or has been renegotiated, excluding performing residential mortgage loans and (ii) if the loan that is non-performing or renegotiated is a residential mortgage loan, all loans to that debtor are considered impaired. See Note 10 of the Audited Consolidated Financial Statements. As a result, impaired loans in 2008 are not necessarily comparable to 2009, 2010 and 2011 impaired loans. The change in classification categories for loan analyzed on an individual basis in 2011 did not affect comparability with 2009 and 2010 impaired loan figures. Renegotiated loans, on which payments are not overdue, are not ordinarily classified as non-performing loans, but do not accrue interest.
|
(4)
|
Includes allowance for interbank loans.
|
(5)
|
Includes interbank loans.
|
Year ended December 31,
|
||||||||||||||||
2011
|
2010
|
2009
|
2008
|
|||||||||||||
Suspended interest
|
Ch$ million
|
|||||||||||||||
Commercial loans
|
34,770 | 26,020 | 25,157 | 25,936 | ||||||||||||
Mortgage loans
|
12,055 | 7,457 | 8,296 | 3,406 | ||||||||||||
Consumer loans
|
21,131 | 16,780 | 32,117 | 25,706 | ||||||||||||
Totals
|
67,956 | 50,257 | 65,570 | 55,048 |
As of
|
||||||||||||||||
December 31, 2011
|
December 31, 2010
|
December 31, 2009
|
December 31, 2008
|
|||||||||||||
(Ch$ million)
|
||||||||||||||||
Total loans
|
17,434,782 | 15,727,282 | 13,751,276 | 14,681,088 | ||||||||||||
Allowance for loan losses
|
488,468 | 425,447 | 349,527 | 274,240 | ||||||||||||
Impaired loans(1)
|
1,323,355 | 1,480,476 | 1,485,737 | 870,259 | ||||||||||||
Impaired loans as a percentage of total loans
|
7.59 | % | 9.41 | % | 10.80 | % | 5.93 | % | ||||||||
Amounts non-performing
|
511,357 | 416,739 | 409,067 | 400,942 | ||||||||||||
To the extent secured
|
264,355 | 214,786 | 206,271 | 187,239 | ||||||||||||
To the extent unsecured
|
247,002 | 201,953 | 202,796 | 213,703 | ||||||||||||
Amounts non-performing as a percentage of total loans
|
2.93 | % | 2.65 | % | 2.97 | % | 2.73 | % | ||||||||
To the extent secured(2)
|
1.52 | % | 1.37 | % | 1.50 | % | 1.28 | % | ||||||||
To the extent unsecured
|
1.41 | % | 1.28 | % | 1.47 | % | 1.45 | % | ||||||||
Loans loss allowances as a percentage of:
|
||||||||||||||||
Total loans
|
2.80 | % | 2.71 | % | 2.54 | % | 1.87 | % | ||||||||
Total amounts non-performing
|
95.52 | % | 102.10 | % | 85.40 | % | 68.40 | % | ||||||||
Total amounts non-performing-unsecured
|
197.76 | % | 210.67 | % | 172.35 | % | 128.33 | % |
(1)
|
Impaired loans as of December 31, 2008 include: (i) all non-performing loans, (ii) all renegotiated consumer loans, and (iii) all commercial loans that are at risk of default. In 2009 and 2010, impaired loans include: (A) for loans whose allowance is determined on an individual basis, impaired loans include: (i) all loans to a debtor that are rated C1 through D2 and (ii) total loans to single debtors with a loan that is non-performing; and (B) for loans whose loan loss allowance is determined on a group basis, impaired loans include: (i) total loans to a debtor, when a loan to that debtor is non-performing or has been renegotiated, excluding performing residential mortgage loans and (ii) if the loan that is non-performing or renegotiated is a residential mortgage loan, all loans to that debtor are considered impaired. In 2011, impaired loans include: (A) for loans whose allowance is determined on an individual basis, impaired loans include: (i) all loans to a debtor that are rated B3 and B4 and all deteriorated debtors and (ii) total loans to single debtors with a loan that is non-performing; and (B) for loans whose loan loss allowance is determined on a group basis, impaired loans include: (i) total loans to a debtor, when a loan to that debtor is non-performing or has been renegotiated, excluding performing residential mortgage loans and (ii) if the loan that is non-performing or renegotiated is a residential mortgage loan, all loans to that debtor are considered impaired. See Note 10 of the Audited Consolidated Financial Statements. As a result, impaired loans in 2008 are not necessarily comparable to 2009, 2010 and 2011 impaired loans. The change in classification categories for loan analyzed on an individual basis in 2011 did not affect comparability with 2009 and 2010 impaired loan figures. Renegotiated loans, on which payments are not overdue, are not ordinarily classified as non-performing loans, but do not accrue interest.
|
(2)
|
Security generally consists of mortgages on real estate, pledges of marketable securities, letters of credit or cash.
|
Impaired loans
|
Commercial
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||
As of December 31, 2011
|
||||||||||||||||
Non-performing loans
|
251,881 | 152,911 | 106,565 | 511,357 | ||||||||||||
Commercial loans at risk of default (1)
|
285,930 | - | - | 285,930 | ||||||||||||
Other impaired loans consisting mainly of renegotiated loans (2)
|
164,158 | 46,785 | 315,125 | 526,068 | ||||||||||||
Total
|
701,969 | 199,696 | 421,690 | 1,323,355 | ||||||||||||
Impaired loans
|
Commercial
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||
As of December 31, 2010
|
||||||||||||||||
Non-performing loans
|
213,872 | 121,911 | 80,956 | 416,739 | ||||||||||||
Commercial loans at risk of default (1)
|
444,129 | — | — | 444,129 | ||||||||||||
Other impaired loans consisting mainly of renegotiated loans (2)
|
230,810 | 20,735 | 368,063 | 619,608 | ||||||||||||
Total
|
888,811 | 142,646 | 449,019 | 1,480,476 | ||||||||||||
Impaired loans
|
Commercial
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||
As of December 31, 2009
|
||||||||||||||||
Non-performing loans
|
195,163 | 130,119 | 83,785 | 409,067 | ||||||||||||
Commercial loans at risk of default (1)
|
405,513 | - | - | 405,513 | ||||||||||||
Other impaired loans consisting mainly of renegotiated loans (2)
|
273,662 | 2,029 | 395,466 | 671,157 | ||||||||||||
Total
|
874,338 | 132,148 | 479,251 | 1,485,737 | ||||||||||||
Impaired loans
|
Commercial
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||
As of December 31, 2008
|
||||||||||||||||
Non-performing loans
|
170,478 | 120,586 | 109,877 | 400,942 | ||||||||||||
Commercial loans at risk of default (1)
|
217,041 | - | - | 217,041 | ||||||||||||
Other impaired loans consisting mainly of renegotiated loans (2)
|
19,697 | 274 | 232,306 | 252,276 | ||||||||||||
Total
|
407,216 | 120,860 | 342,183 | 870,259 |
(1)
|
Total loans to a debtor, whose allowance level is determined on an individual basis with a risk of defaulting.
|
(2)
|
Renegotiated loans for loans whose loan loss allowance is analyzed on a group basis.
|
As of December 31, 2011
Period of renegotiation
|
Success rate
Consumer Loans
|
Success rate
Residential mortgage loans
|
||
1Q 2010
|
83.8%
|
89.4%
|
||
2Q 2010
|
73.0%
|
87.8%
|
||
3Q 2010
|
79.7%
|
n/d(1)
|
||
4Q 2010
|
100.0%
|
92.1%
|
||
1Q 2011
|
71.3%
|
100.0%
|
As of December 31, 2011
Period of renegotiation
|
Success rate
Consumer Loans
|
Success rate
Residential mortgage loans
|
||
2Q 2011
|
73.7%
|
100.0%
|
||
3Q 2011
|
100.0%
|
100.0%
|
||
4Q 2011
|
100.0%
|
100.0%
|
Year Ended December 31,
|
||||||||||||||||
2011
|
2010
|
2009
|
2008
|
|||||||||||||
(in millions of Ch$, except percentages)
|
||||||||||||||||
Loan loss allowances at beginning of the year
|
425,393 | 349,485 | 274,240 | 230,404 | ||||||||||||
Release of allowances upon charge-offs (1)
|
(291,088 | ) | (207,046 | ) | (295,831 | ) | (274,372 | ) | ||||||||
Allowances established (2)
|
455,305 | 310,552 | 398,416 | 326,121 | ||||||||||||
Allowances released (3)
|
(101,153 | ) | (27,598 | ) | (27,298 | ) | (7,913 | ) | ||||||||
Loan loss allowances at end of year (4)
|
488,457 | 425,393 | 349,527 | 274,240 | ||||||||||||
Ratio of charge-offs to average loans
|
1.67 | % | 1.30 | % | 2.18 | % | 2.12 | % | ||||||||
Loan loss allowances at end of period as a percentage of total loans
|
2.80 | % | 2.71 | % | 2.54 | % | 1.87 | % |
(1)
|
Reflects release of loan loss allowance equal to the entire amount of loans charged off, including any portion of such loans with respect to which no allowance had been established prior to the charge-off.
|
(2)
|
Includes, in addition to provisions made in respect of increased risk of loss during the period, provisions made to replace allowances released upon charge-off of loans. See Note (1) to this table.
|
(3)
|
Represents the amount of loan loss allowances released during the year as a consequence of reduction in the level of risk existing in the loan portfolio, including as a result of improvement in the credit risk classification of borrowers, and the release of loan loss allowances as a consequence of the full charge-off of loans for which partial allowances were previously established. See Note 10(d) of the Audited Consolidated Financial Statements.
|
(4)
|
Excludes interbank loans.
|
Charge-offs by loan product
|
Year ended December 31,
|
% Change
|
% Change
|
% Change
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2011/2010 | 2010/2009 | 2009/2008 | ||||||||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||||||||||
Consumer loans
|
(187,937 | ) | (121,621 | ) | (239,005 | ) | (236,405 | ) | 54.5 | % | (49.1 | %) | 1.1 | % | ||||||||||||||
Residential mortgage loans
|
(12,776 | ) | (14,549 | ) | (8,708 | ) | (5,032 | ) | (12.2 | %) | 67.1 | % | 73.1 | % | ||||||||||||||
Commercial loans
|
(90,375 | ) | (70,876 | ) | (48,118 | ) | (32,935 | ) | 27.5 | % | 47.3 | % | 46.1 | % | ||||||||||||||
Total charge-offs
|
(291,088 | ) | (207,046 | ) | (295,831 | ) | (274,372 | ) | 40.6 | % | (30.0 | %) | 7.8 | % |
Recovery of loans previously charged-off
|
Year ended December 31,
|
% Change
|
% Change
|
% Change
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2011/2010 | 2010/2009 | 2009/2008 | ||||||||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||||||||||
Consumer loans
|
12,474 | 22,096 | 28,268 | 26,718 | (43.5 | %) | (21.8 | %) | 5.8 | % | ||||||||||||||||||
Residential mortgage loans
|
16,135 | 1,389 | 2,560 | 1,932 | 1061.6 | % | (45.7 | %) | 32.5 | % | ||||||||||||||||||
Commercial loans
|
7,216 | 6,994 | 8,446 | 9,244 | 3.2 | % | (17.2 | %) | (8.6 | %) | ||||||||||||||||||
Total recoveries
|
35,825 | 30,479 | 39,274 | 37,894 | 17.5 | % | (22.4 | %) | 3.6 | % |
As of December 31, 2011
|
As of December 31, 2010
|
As of December 31, 2009
|
As of December 31, 2008
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Ch$ million
|
Ch$ million
|
Ch$ million
|
Ch$ million
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans
|
161,289 | 2.4 | % | 0.9 | % | 33.0 | % | 132,775 | 2.2 | % | 0.8 | % | 31.2 | % | 124,275 | 2.3 | % | 0.9 | % | 35.6 | % | 84,297 | 1.5 | % | 0.6 | % | 30.7 | % | ||||||||||||||||||||||||||||||||||||
Foreign trade loans
|
19,764 | 1.9 | % | 0.1 | % | 4.0 | % | 18,888 | 2.4 | % | 0.1 | % | 4.4 | % | 23,027 | 3.6 | % | 0.2 | % | 6.6 | % | 12,588 | 0.9 | % | 0.1 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||||
General purpose mortgage loans
|
3,384 | 2.6 | % | 0.0 | % | 0.7 | % | 4,350 | 6.4 | % | 0.0 | % | 1.0 | % | 3,570 | 3.8 | % | 0.0 | % | 1.0 | % | 3,574 | 2.9 | % | 0.0 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||
Factoring transactions
|
1,861 | 1.0 | % | 0.0 | % | 0.4 | % | 2,083 | 1.0 | % | 0.0 | % | 0.5 | % | 2,386 | 1.8 | % | 0.0 | % | 0.7 | % | 1,855 | 0.6 | % | 0.0 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||
Leasing transactions
|
19,266 | 1.6 | % | 0.1 | % | 3.9 | % | 14,742 | 1.3 | % | 0.1 | % | 3.5 | % | 7,839 | 0.8 | % | 0.1 | % | 2.2 | % | 6,473 | 0.7 | % | 0.0 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||
Other Loans and accounts receivables from customers
|
4,238 | 5.0 | % | 0.0 | % | 0.9 | % | 9,664 | 53.8 | % | 0.1 | % | 2.3 | % | 5,342 | 48.7 | % | 0.0 | % | 1.5 | % | 5,342 | 46.1 | % | 0.0 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||
Subtotals
|
209,802 | 2.3 | % | 1.2 | % | 42.9 | % | 182,502 | 2.2 | % | 1.2 | % | 42.9 | % | 166,439 | 2.3 | % | 1.2 | % | 47.6 | % | 114,129 | 1.4 | % | 0.8 | % | 41.6 | % | ||||||||||||||||||||||||||||||||||||
Mortgage loans
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans with letters of credit
|
707 | 0.6 | % | 0.0 | % | 0.1 | % | 446 | 0.3 | % | 0.0 | % | 0.1 | % | 576 | 0.3 | % | 0.0 | % | 0.2 | % | 968 | 0.4 | % | 0.0 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||
Mortgage mutual loans
|
1,241 | 1.7 | % | 0.0 | % | 0.3 | % | 11,319 | 6.1 | % | 0.1 | % | 2.7 | % | 9,040 | 4.5 | % | 0.1 | % | 2.6 | % | 4,400 | 2.2 | % | 0.0 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||
Other mortgage mutual loans
|
33,685 | 0.7 | % | 0.2 | % | 6.9 | % | 5,567 | 0.1 | % | 0.0 | % | 1.3 | % | 6,918 | 0.2 | % | 0.1 | % | 2.0 | % | 7,262 | 0.2 | % | 0.0 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||||
Subtotals
|
35,633 | 0.7 | % | 0.2 | % | 7.3 | % | 17,332 | 0.4 | % | 0.1 | % | 4.1 | % | 16,534 | 0.4 | % | 0.1 | % | 4.8 | % | 12,630 | 0.3 | % | 0.1 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment consumer loans
|
193,874 | 10.7 | % | 1.1 | % | 39.7 | % | 176,219 | 11.0 | % | 1.1 | % | 41.4 | % | 130,532 | 9.5 | % | 0.9 | % | 37.3 | % | 106,313 | 7.9 | % | 0.7 | % | 38.8 | % | ||||||||||||||||||||||||||||||||||||
Credit card balances
|
43,922 | 4.8 | % | 0.3 | % | 9.0 | % | 36,156 | 4.6 | % | 0.2 | % | 8.5 | % | 24,433 | 4.2 | % | 0.2 | % | 7.0 | % | 28,162 | 4.8 | % | 0.2 | % | 10.3 | % |
As of December 31, 2011
|
As of December 31, 2010
|
As of December 31, 2009
|
As of December 31, 2008
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
Total Allowance
|
Allowance amount as a percent-age of loans in category
|
Allowance amount as a percent-age of total loans
|
Allowance amount as a percent-age of total allocated allowances
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Ch$ million
|
Ch$ million
|
Ch$ million
|
Ch$ million
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer leasing contracts
|
109 | 2.9 | % | 0.0 | % | 0.0 | % | 121 | 3.2 | % | 0.0 | % | 0.0 | % | 9 | 0.2 | % | 0.0 | % | 0.0 | % | - | ||||||||||||||||||||||||||||||||||||||||||
Other consumer loans
|
5,117 | 2.4 | % | 0.0 | % | 1.1 | % | 13,063 | 4.4 | % | 0.1 | % | 3.1 | % | 11,538 | 4.2 | % | 0.1 | % | 3.3 | % | 12,971 | 4.1 | % | 0.1 | % | 4.7 | % | ||||||||||||||||||||||||||||||||||||
Subtotals
|
243,022 | 8.3 | % | 1.4 | % | 49.8 | % | 225,559 | 8.4 | % | 1.4 | % | 53.0 | % | 166,512 | 7.4 | % | 1.2 | % | 47.6 | % | 147,446 | 6.6 | % | 1.0 | % | 53.8 | % | ||||||||||||||||||||||||||||||||||||
Totals loans to clients
|
488,457 | 2.8 | % | 2.8 | % | 100.0 | % | 425,393 | 2.7 | % | 2.7 | % | 100.0 | % | 349,485 | 2.5 | % | 2.5 | % | 100.0 | % | 274,205 | 1.9 | % | 1.9 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
Interbank
|
11 | 0.0 | % | 0.0 | % | 0.0 | % | 54 | 0.1 | % | 0.0 | % | 0.0 | % | 42 | 0.2 | % | 0.0 | % | 0.0 | % | 35 | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||||||||
Totals
|
488,468 | 2.8 | % | 2.8 | % | 100.0 | % | 425,447 | 2.7 | % | 2.7 | % | 100.0 | % | 349,527 | 2.5 | % | 2.5 | % | 100.0 | % | 274,240 | 1.9 | % | 1.9 | % | 100.0 | % |
Directors
|
Position
|
Committees
|
Term Expires
|
|
Mauricio Larraín Garcés
|
Chairman and Director
|
Asset and Liability Committee
Executive Credit Committee
Marketing and Communications Committee
University Committee
Strategy Committee
Human Resources Committee
|
April 2014
|
|
Jesús Zabalza Lotina
|
First Vice Chairman and Director
|
Strategy Committee
|
April 2014
|
|
Oscar Von Chrismar Carvajal
|
Second Vice Chairman and Director
|
Asset and Liability Committee
Executive Credit Committee
Market Committee
Strategy Committee
Technology Committee
Marketing and Communications Committee
Clients and Service Quality Committee
Integral Risk Management and Internal Control Committee
Human Resources Committee
|
April 2014
|
|
Carlos Olivos Marchant
|
Director
|
Audit Committee
|
April 2014
|
|
Víctor Arbulú Crousillat
|
Director
|
Audit Committee
|
April 2014
|
|
Marco Colodro Hadjes
|
Director
|
Asset and Liability Committee
Executive Credit Committee
Market Committee
Integral Risk Management and Internal Control Committee
|
April 2014
|
|
Lucía Santa Cruz Sutil
|
Director
|
University Committee
Marketing and Communications Committee
|
April 2014
|
|
Roberto Méndez Torres
|
Director
|
Executive Credit Committee
Marketing and Communications Committee
University Committee
Strategy Committee
Clients and Service Quality Committee
|
April 2014
|
Directors
|
Position
|
Committees
|
Term Expires
|
|
Vittorio Corbo Lioi
|
Director
|
Asset and Liability Committee
Market Committee
|
April 2014
|
|
Roberto Zahler Mayanz
|
Director
|
Asset and Liability Committee
Market Committee
|
April 2014
|
|
Lisandro Serrano Spoerer
|
Director
|
Audit Committee
Analysis and Resolution Committee
|
April 2014
|
|
Juan Manuel Hoyos Martínez de Irujo
|
Alternate Director
|
Strategy Committee
|
April 2014
|
|
Raimundo Monge Zegers
|
Alternate Director
|
Asset and Liability Committee
Strategy Committee
Transparency Committee
|
April 2014
|
Senior Manager
|
Position
|
Date Appointed
|
||
Claudio Melandri
|
Chief Executive Officer
|
January 1, 2010
|
||
Miguel Mata
|
Chief Financial Officer
|
November 1, 2011
|
||
Gabriel Montoya
|
Corporate Financial Controller
|
April 1, 2009
|
||
José Manuel Manzano
|
Chief Risk Officer
|
March 1, 2012
|
||
Javier Montero
|
Corporate Director of Internal Audit
|
May 1, 2010
|
||
Fred Meller
|
Global Banking and Markets
|
January 1, 2011
|
||
Fernando Cloppet
|
Manager Commercial Banking
|
March 1, 2012
|
||
Francisco Murillo
|
Manager Human Resources & Administration
|
March 1, 2012
|
||
Felipe Contreras
|
Chief Accounting Officer
|
October 1, 2008
|
||
Pablo Correa
|
Manager Corporate Communications
|
March 1, 2012
|
||
Juan Fernández
|
Manager Clients and Service Quality
|
June 1, 2011
|
||
Luis Camarena
|
Manager Credit Risk
|
March 1, 2012
|
||
Juan Pedro Santa María
|
General Counsel
|
July 30, 2009
|
Santander’s position in the
TSR Ranking
|
Maximum percentage
of shares earned
|
Santander’s position in the
EPS growth ranking
|
Maximum percentage
of shares earned
|
1st to 6th
|
50%
|
1st to 6th
|
50%
|
7°
|
43%
|
7°
|
43%
|
8°
|
36%
|
8°
|
36%
|
9°
|
29%
|
9°
|
29%
|
10°
|
22%
|
10°
|
22%
|
11°
|
15%
|
11°
|
15%
|
12th and above
|
0%
|
12th and above
|
0%
|
Santander’s position in the
TSR Ranking
|
Maximum percentage
of shares earned
|
1st to 5th
|
100%
|
6°
|
82.5%
|
7°
|
65.0%
|
8°
|
47.5%
|
9°
|
30.0%
|
10th and above
|
0.0%
|
Santander’s position in the TSR Ranking
|
Maximum percentage of shares earned
|
1st to 5th
|
100.0%
|
6°
|
86.05%
|
7°
|
72.0%
|
8°
|
58.0%
|
9°
|
44.0%
|
10°
|
30.0%
|
11th to 17th
|
0.0%
|
PI10
|
PI11
|
PI12
|
PI13
|
PI14
|
|
Expected volatility (*)
|
15.67%
|
19.31%
|
42.36%
|
49.65%
|
51.35%
|
Historical annual dividend return
|
3.24%
|
3.47%
|
4.88%
|
6.34%
|
6.06%
|
Risk-free interest rate
|
4.49%
|
4.83%
|
2.04%
|
3.33%
|
4.07%
|
Number
of shares
|
Exercise
price
€
|
Group of employees
|
Number of individuals
|
Date of commencement
of the
exercise
|
Date of
termination
of exercise
period
|
|
Plans in force on December 31, 2009
|
3,082,145
|
1.205
|
||||
Options granted (Plan I10)
|
1,519,169
|
-
|
Managers
|
477
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I10)
|
70,000
|
-
|
Other non-managerial positions
|
67
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
1,057,204
|
-
|
Managers
|
322
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
71,042
|
-
|
Other non-managerial positions
|
106
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
327,882
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
36,848
|
-
|
Other non-managerial positions
|
76
|
07/01/2009
|
06/30/2012
|
Plans in force on December 31, 2010
|
3,066,095
|
|||||
Options granted (Plan I10)
|
237,976
|
-
|
Managers
|
162
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I10)
|
9,070
|
-
|
Other non-managerial positions
|
19
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
557,772
|
-
|
Managers
|
167
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
31,171
|
-
|
Other non-managerial positions
|
47
|
07/01/2008
|
06/30/2011
|
Number
of
shares
|
Exercise
price
€
|
Group of employees
|
Number of individuals
|
Date of commencement
of the
exercise
|
Date of
termination
of exercise
period
|
|
Options granted (Plan I12)
|
564,339
|
-
|
Managers
|
170
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
43,787
|
-
|
Other non-managerial positions
|
63
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
310,902
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I13)
|
65,148
|
-
|
Other non-managerial positions
|
68
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I10) exercised
|
(1,757,145)
|
-
|
Managers
|
162
|
||
Options granted (Plan I10) exercised
|
(79,070)
|
-
|
Other non-managerial positions
|
19
|
||
Plans in force on December 31, 2011
|
3,102,503
|
|||||
Options granted (Plan I11)
|
315,716
|
-
|
Managers
|
174
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
16,868
|
-
|
Other non-managerial positions
|
47
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
591,686
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
79,631
|
-
|
Other non-managerial positions
|
77
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
650,474
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I13)
|
136,303
|
-
|
Other non-managerial positions
|
68
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I14)
|
295,503
|
-
|
Not distributed
|
07/01/2011
|
06/30/2014
|
|
Options granted (Plan I11)
|
(1,930,691)
|
-
|
Other non-managerial positions
|
174
|
||
Options granted (Plan I11)
|
(119,082)
|
-
|
Managers
|
47
|
||
Plan I12
|
1,644,173
|
|||||
Plan I13
|
1,162,827
|
|||||
Plan I14
|
295,503
|
|
·
|
Aimed at Group management
|
|
·
|
The general requisite to apply for this benefit is that the employee must be working at the Bank at age 60.
|
|
·
|
The Santander Group will take on insurance (pension fund) on the employee’s behalf for which it will pay a premium contribution periodically.
|
|
·
|
The Santander Group will be responsible for granting the benefits directly.
|
Post–employment plans
|
Post–employment plans
|
||
2011
|
2010
|
||
Mortality table
|
RV-2004
|
RV-2004
|
|
Disability table
|
PDT 1985
|
PDT 1985
|
|
Turnover rates
|
5.0%
|
5.0%
|
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
Plan assets
|
5,508 | 5,170 | ||||
Commitments for defined-benefit plans
|
||||||
for active personnel
|
(2,160 | ) | (953 | ) | ||
Incurred by inactive personnel
|
- | - | ||||
Minus:
|
||||||
Unrealized actuarial (gain) losses
|
- | - | ||||
Balances at the period end
|
3,348 | 4,217 |
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
a ) Fair value of plan assets
|
||||||
Balance at beginning of period
|
5,170 | 4,925 | ||||
Expected return of insurance contracts
|
403 | 202 | ||||
Employer contributions
|
(65 | ) | 43 | |||
Actuarial (gain) losses
|
- | - | ||||
Premiums paid
|
- | - | ||||
Benefits paid
|
- | - | ||||
Fair value of plan assets at end of period
|
5,508 | 5,170 | ||||
b ) Present value of obligations
|
||||||
Present value of obligations at beginning of the period
|
(953 | ) | - | |||
Net incorporation of Group companies
|
- | - | ||||
Service cost
|
(1,207 | ) | (941 | ) |
Interest cost
|
- | - | ||||
Curtailment/settlement effect
|
- | - | ||||
Benefits paid
|
- | - | ||||
Past service cost
|
- | - | ||||
Actuarial (gain) losses
|
- | (12 | ) | |||
Other
|
- | - | ||||
Present value of obligations at end of the period
|
(2,160 | ) | (953 | ) | ||
Net balance at the period end
|
3,348 | 4,217 |
2011
|
2010
|
||
Expected rate of return on plan’s assets
|
UF + 2.50% annual
|
UF + 2.50% annual
|
|
Expected rate of return on reimbursement rights
|
UF + 2.50% annual
|
UF + 2.50% annual
|
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
Current period service cost
|
1,207 | 941 | ||||
Interest cost
|
- | - | ||||
Expected return on plan assets
|
(403 | ) | (202 | ) | ||
Expected return on insurance contracts linked to the Plan:
|
- | |||||
Extraordinary allocations
|
- | - | ||||
Actuarial (gains)/losses recorded in the period
|
- | 12 | ||||
Past service cost
|
- | - | ||||
Other
|
- | - | ||||
Totals
|
804 | 751 |
Board member
|
Position in Committee
|
|
Carlos Olivos
|
Chairman
|
|
Víctor Arbulú Crousillat
|
First Vice Chairman and Financial Expert
|
|
Lisandro Serrano
|
Second Vice Chairman
|
|
·
|
Presenting to the Board of Directors a list of candidates for the selection of an external auditor.
|
|
·
|
Presenting to the board of directors a list of candidates for the selection of rating agencies.
|
|
·
|
Overseeing and analyzing the results of the external audit and the internal reviews.
|
|
·
|
Coordinating the activities of internal auditing with the external auditors’ review.
|
|
·
|
Analyzing the interim and year-end financial statements and reporting the results to the Board of Directors.
|
|
·
|
Analyzing the external auditors’ reports and their content, procedures and scope.
|
|
·
|
Analyzing the rating agencies’ reports and their content, procedures and scope.
|
|
·
|
Obtaining information regarding the effectiveness and reliability of the internal control systems and procedures.
|
|
·
|
Analyzing the information systems performance, and its sufficiency, reliability and use in connection with decision-making processes.
|
|
·
|
Obtaining information regarding compliance with the company’s policies regarding the due observance of laws, regulations and internal rules to which the company is subject.
|
|
·
|
Investigating suspicious and fraudulent activities (including conflicts).
|
|
·
|
Analyzing the reports of the inspection visits, instructions and presentations of the Superintendency of Banks.
|
|
·
|
Obtaining information, analyzing and verifying the company’s compliance with the annual audit program prepared by the internal audit department.
|
|
·
|
Informing the Board of Directors of accounting changes and their effects.
|
|
Examining on an annual basis the compensation plans of high level executives and managers.
|
Board member
|
Position in Committee
|
|
Mauricio Larraín
|
Chairman
|
|
Oscar von Chrismar
|
Vice-Chairman
|
|
Vittorio Corbo
|
Second Vice-Chairman
|
|
Marco Colodro
|
Member
|
|
Roberto Zahler
|
Member
|
|
Raimundo Monge
|
Member
|
Board member
|
Position in Committee
|
|
Oscar von Chrismar
|
Chairman
|
|
Roberto Zahler
|
Vice-Chairman
|
|
Vittorio Corbo
|
Second Vice-Chairman
|
|
Mauricio Larraín
|
Member
|
|
Marco Colodro
|
Member
|
Board member
|
Position in Committee
|
|
Oscar von Chrismar
|
Chairman
|
|
Marco Colodro
|
Member
|
Board member
|
Position in Committee
|
|
Mauricio Larraín
|
Chairman
|
|
Oscar von Chrismar
|
Vice-Chairman
|
|
Marco Colodro
|
Second Vice-Chairman
|
|
Roberto Méndez
|
Member
|
Board member
|
Position in Committee
|
|
Mauricio Larraín
|
Chairman
|
|
Roberto Méndez
|
Vice-Chairman
|
|
Lucía Santa Cruz
|
Second Vice-Chairman
|
|
Oscar Von-Chrismar
|
Member
|
Board member
|
Position in Committee
|
|
Mauricio Larraín
|
Chairman
|
|
Roberto Méndez
|
Vice-Chairman
|
|
Lucía Santa Cruz
|
Second Vice-Chairman
|
Board member
|
Position in Committee
|
|
Mauricio Larraín
|
Chairman
|
|
Oscar von Chrismar
|
Vice Chairman
|
|
Jesús Zabalza
|
Member
|
|
Juan Manuel Hoyos
|
Member
|
|
Roberto Méndez
|
Member
|
|
Raimundo Monge
|
Member
|
Employees
|
As of December 31, 2011
|
|
Executives
|
677
|
|
Professionals
|
4,947
|
|
Administrative
|
5,942
|
|
Total
|
11,566
|
Directors
|
Shares
|
||
Mauricio Larraín Garcés
|
568 | ||
Carlos Olivos Marchant
|
1,237,410 | ||
Senior Managers
|
|||
Juan Fernández
|
35,536 |
Shareholder
|
Number of Shares
|
Percentage
|
||||||
Santander Chile Holding | 66,822,519,695 | 35.46 | % | |||||
Teatinos Siglo XXI Inversiones Ltda.
|
59,770,481,573 | 31.72 | % |
As of December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Companies
of the
Group
|
Associated companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
|||||||||||||||||||||||||||||||||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||||||||||||||||||||||||||||||||||||
Loans and accounts receivables
|
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans
|
39,708 | 663 | 2,234 | 62,512 | 36,966 | 670 | 2,478 | 14,015 | 11,331 | 914 | 2,840 | 108,372 | ||||||||||||||||||||||||||||||||||||
Mortgage loans
|
- | - | 15,657 | - | - | - | 15,157 | - | - | - | 12,754 | - | ||||||||||||||||||||||||||||||||||||
Consumer loans
|
- | - | 1,808 | - | - | - | 2,182 | - | - | - | 1,744 | - | ||||||||||||||||||||||||||||||||||||
Loans and accounts receivables
|
39,708 | 663 | 19,699 | 62,512 | 36,966 | 670 | 19,817 | 14,015 | 11,331 | 914 | 17,338 | 108,372 | ||||||||||||||||||||||||||||||||||||
Provision for loan losses
|
(54 | ) | (1 | ) | (39 | ) | (23 | ) | (112 | ) | (1 | ) | (87 | ) | (14 | ) | (13 | ) | (1 | ) | (11 | ) | (298 | ) | ||||||||||||||||||||||||
Net loans
|
39,654 | 662 | 19,660 | 62,489 | 36,854 | 669 | 19,730 | 14,001 | 11,318 | 913 | 17,327 | 108,074 | ||||||||||||||||||||||||||||||||||||
Guarantees
|
25,311 | - | 18,244 | 1,241 | 7,641 | - | 18,649 | 1,359 | 4,552 | - | 45,550 | 596 | ||||||||||||||||||||||||||||||||||||
Contingent loans
|
||||||||||||||||||||||||||||||||||||||||||||||||
Personal guarantees
|
- | - | - | - | - | - | - | - | - | - | 15,900 | - | ||||||||||||||||||||||||||||||||||||
Letters of credit
|
187 | - | - | - | 2,964 | - | - | - | 1,868 | - | - | - | ||||||||||||||||||||||||||||||||||||
Guarantees
|
12,778 | - | - | 569 | 12,307 | - | - | 84 | 134,644 | - | - | 259 | ||||||||||||||||||||||||||||||||||||
Contingent loans
|
12,965 | - | - | 569 | 15,271 | - | - | 84 | 136,512 | - | 15,900 | 259 | ||||||||||||||||||||||||||||||||||||
Provisions for contingent loans
|
(63 | ) | - | - | (1 | ) | (1 | ) | - | - | - | (21 | ) | - | - | - | ||||||||||||||||||||||||||||||||
Net contingent loans
|
12,902 | - | - | 568 | 15,270 | - | - | 84 | 136,491 | - | 15,900 | 259 |
|
·
|
a bank may not extend to any person or legal entity (or group of related entities), directly or indirectly, unsecured loans in an amount that exceeds 5.0% of the bank’s regulatory capital, or secured loans in an amount that exceeds 25.0% of its regulatory capital. In the case of foreign export trade finance, this 5.0% ceiling is raised to: 10.0% for unsecured financing, 30.0% for secured financing. This ceiling is raised to 15.0% for loans granted to finance public works under the concessions system contemplated in the Decree with Force of Law 164 of 1991, of the Ministry of Public Works, provided that either the loan is secured on the concession, or the loan is granted as part of a loan syndication;
|
|
·
|
a bank may not grant loans bearing more favorable terms than those generally offered by banks in the same community to any entity (or group of related entities) that is directly or indirectly related to its owners or management;
|
|
·
|
a bank may not extend loans to another bank in an aggregate amount exceeding 30.0% of its regulatory capital;
|
|
·
|
a bank may not directly or indirectly grant a loan, the purpose of which is to allow the borrower to acquire shares in the lending bank;
|
|
·
|
a bank may not lend, directly or indirectly, to a Director or any other person who has the power to act on behalf of the bank, or to certain related parties; and
|
|
·
|
a bank may not grant loans to individuals or legal entities involved in the ownership or management of the bank, whether directly or indirectly (including holders of 1.0% or more of its shares), on more favorable terms than those generally offered to non-related parties. Loans may not be extended to senior executives and to companies in which such individuals have a participation of 5.0% or more of the equity or net earnings in such companies. The aggregate amount of loans to related parties may not exceed a bank’s regulatory capital.
|
As of December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||||||||||||||
Companies
of the
Group
|
Associated companies
|
Key personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key personnel
|
Other
|
Companies
of the
Group
|
Associated companies
|
Key
personnel
|
Other
|
|||||||||||||||||||||||||||||||||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits in banks
|
178,567 | - | - | - | 34,104 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Trading investments
|
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Investments under resale agreements
|
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Financial derivative contracts
|
506,880 | - | - | - | 541,737 | - | - | - | 405,411 | - | - | - | ||||||||||||||||||||||||||||||||||||
Available for sale investments
|
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other assets
|
4,617 | - | - | - | 22,072 | - | - | - | 117,060 | - | - | - | ||||||||||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Deposits and other demand liabilities
|
5,057 | 4,009 | 1,425 | 16,782 | 9,905 | 6,014 | 1,311 | 4,128 | 1,503 | 6,238 | 502 | 925 | ||||||||||||||||||||||||||||||||||||
Investments under repurchase agreements
|
137,191 | - | - | - | 47,636 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Time deposits and other time liabilities
|
248,206 | 368 | 3,627 | 41,732 | 320,622 | - | 1,657 | 48,749 | 411,295 | - | 1,126 | 21,652 | ||||||||||||||||||||||||||||||||||||
Financial derivative contracts
|
396,538 | - | - | - | 317,601 | - | - | - | 245,574 | - | - | - | ||||||||||||||||||||||||||||||||||||
Issued debt instruments
|
1,683 | - | - | - | 9,392 | - | - | - | 89,258 | - | - | - | ||||||||||||||||||||||||||||||||||||
Other financial liabilities
|
58,848 | - | - | - | 153,913 | - | - | - | 55,156 | - | - | - | ||||||||||||||||||||||||||||||||||||
Other liabilities
|
1,339 | - | - | - | 2,782 | - | - | - | 310 | - | - | - |
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
Companies
|
Key
personnel
|
Other
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Income (expense) recorded
|
||||||||||||||
Income and expenses from interests and readjustments
|
(17,892)
|
54
|
1,289
|
(3,683)
|
(10,093)
|
55
|
1,279
|
7
|
(23,344)
|
42
|
308
|
(769)
|
||
Income and expenses from fees and services
|
387
|
38
|
110
|
196
|
70,359
|
48
|
102
|
93
|
56,822
|
71
|
79
|
50
|
||
Net income from financial and foreign exchange operations(*)
|
(38,744)
|
-
|
(5)
|
(392)
|
86,457
|
-
|
(4)
|
4,098
|
129,046
|
-
|
2
|
(13,634)
|
||
Other operating revenues and expenses
|
519
|
-
|
-
|
-
|
(4,866)
|
-
|
-
|
-
|
(4,294)
|
-
|
-
|
-
|
||
Key personnel compensation and expenses
|
-
|
-
|
(33,082)
|
-
|
-
|
-
|
(29,879)
|
-
|
-
|
-
|
(28,663))
|
-
|
||
Administrative and other expenses
|
(13,303)
|
(25,509)
|
-
|
-
|
(20,738)
|
(21,777)
|
-
|
-
|
(13,107)
|
(16,666))
|
-
|
-
|
||
Totals
|
(69,033)
|
(25,417)
|
(31,688)
|
(3,879)
|
121,119
|
(21,674)
|
(28,502)
|
4,198
|
145,123
|
(16,553)
|
(28,274)
|
(14,353)
|
Santiago Stock Exchange
|
NYSE
|
|||||||||||||||
Common Stock
|
ADS(2)
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
(Ch$ per share(1))
|
(US$ per ADS)
|
|||||||||||||||
Annual Price History
|
||||||||||||||||
2007
|
27.10 | 21.25 | 55.30 | 41.76 | ||||||||||||
2008
|
24.86 | 16.51 | 54.60 | 28.16 | ||||||||||||
2009
|
31.00 | 18.23 | 64.78 | 31.22 | ||||||||||||
2010
|
47.37 | 30.74 | 99.44 | 59.40 | ||||||||||||
2011
|
43.65 | 31.94 | 96.44 | 62.69 | ||||||||||||
Quarterly Price History
|
||||||||||||||||
2009
|
||||||||||||||||
1st Quarter
|
23.00 | 18.23 | 38.84 | 31.22 | ||||||||||||
2nd Quarter
|
23.90 | 19.44 | 46.69 | 34.01 | ||||||||||||
3rd Quarter
|
30.41 | 23.34 | 57.94 | 44.97 | ||||||||||||
4th Quarter
|
31.00 | 26.96 | 64.78 | 52.64 | ||||||||||||
2010
|
||||||||||||||||
1st Quarter
|
34.99 | 30.74 | 70.63 | 60.59 | ||||||||||||
2nd Quarter
|
36.36 | 31.03 | 71.88 | 59.40 | ||||||||||||
3rd Quarter
|
47.37 | 34.73 | 99.44 | 66.73 | ||||||||||||
4th Quarter
|
45.20 | 41.61 | 97.02 | 91.28 | ||||||||||||
2011
|
||||||||||||||||
1st Quarter
|
43.65 | 35.63 | 93.75 | 76.06 | ||||||||||||
2nd Quarter
|
42.23 | 39.80 | 93.81 | 86.25 | ||||||||||||
3rd Quarter
|
42.93 | 34.53 | 96.44 | 70.65 | ||||||||||||
4th Quarter
|
38.80 | 31.94 | 82.54 | 62.69 | ||||||||||||
Monthly Price History
|
||||||||||||||||
September 2011
|
41.04 | 41.04 | 91.76 | 91.76 | ||||||||||||
October 2011
|
38.70 | 38.70 | 82.54 | 82.54 | ||||||||||||
November 2011
|
38.80 | 31.94 | 80.38 | 62.69 | ||||||||||||
December 2011
|
37.49 | 32.19 | 75.70 | 65.14 | ||||||||||||
January 2012
|
40.17 | 37.23 | 84.55 | 75.68 | ||||||||||||
February 2012
|
38.67 | 36.13 | 82.57 | 77.50 | ||||||||||||
March 2012
|
41.00 | 37.69 | 88.22 | 78.83 |
|
·
|
a change in corporate form, spin-off or merger;
|
|
·
|
an amendment of the term of existence, if any, and the early dissolution of the bank;
|
|
·
|
a change in corporate domicile;
|
|
·
|
a decrease of corporate capital previously approved by the Superintendency of Banks, provided it is not reduced below the legal minimum capital;
|
|
·
|
a decrease in the number of directors previously approved by the Superintendency of Banks;
|
|
·
|
the approval of contributions and appraisal of properties other than cash, in those cases where it is permitted by the General Banking Act;
|
|
·
|
the amendment of authority of the general shareholders’ meeting or the restriction of the authority of the Board of Directors;
|
|
·
|
the transfer of 50.0% or more of the corporate assets, regardless of whether it includes liabilities, or the implementation or amendment of any business plan that contemplates the transfer of 50.0% or more of the corporate assets;
|
|
·
|
a change in the manner of distribution of profits established in the by-laws;
|
|
·
|
any non-cash distribution in respect of the shares;
|
|
·
|
the repurchase of shares of stock in the Bank; or
|
|
·
|
the approval of material related-party transactions when requested by shareholders representing at least 5.0% of the issued and outstanding shares with right to vote if they determine that the terms and conditions of those transactions are not favorable to the interests of the bank or if two independent assessments of those transactions requested by the Board materially differ from each other.
|
|
·
|
any direct or indirect acquisition or sale of shares that results in the holder’s acquiring or disposing, directly or indirectly, 10.0% or more of an open stock corporation’s share capital; and
|
|
·
|
any direct or indirect acquisition or sale of shares or options to buy or sell shares, in any amount, if made by a holder of 10.0% or more of an open stock corporation’s capital or if made by a director, liquidator, main officer, general manager or manager of such corporation.
|
|
·
|
an offer which allows a person to take control of a publicly traded company, unless (i) the shares are being sold by a controlling shareholder of such company at a price in cash which is not substantially higher than the market price and the shares of such company are actively traded on a stock exchange and (ii) those shares are acquired (a) through a capital increase, (b) as a consequence of a merger, (c) by inheritance or (d) through a forced sale; and
|
|
·
|
an offer for a controlling percentage of the shares of a listed company if such person intends to take control of the parent company (whether listed or not) of such listed company, to the extent that the listed company represents 75.0% or more of the consolidated net worth of the parent company.
|
|
·
|
another person or group of persons acting pursuant to joint action agreement, directly or indirectly, controls a stake equal to or greater than the percentage controlled by such person or group of persons;
|
|
·
|
the person or group does not control, directly or indirectly, more than 40.0% of the voting share capital and the percentage controlled is lower than the sum of the shares held by other shareholders holding more than 5.0% of the share capital (either directly or pursuant to a joint action agreement); or
|
|
·
|
in cases where the Superintendency of Securities and Insurance has ruled otherwise, based on the distribution or atomization of the overall shareholding.
|
|
·
|
a principal and its agents;
|
|
·
|
spouses and relatives within certain degrees of kinship;
|
|
·
|
entities within the same business group; and
|
|
·
|
an entity and its controller or any of the members of the controller.
|
|
·
|
a company and its controller;
|
|
·
|
all the companies with a common controller together with that controller;
|
|
·
|
all the entities that the Superintendency of Securities and Insurance declares to be part of the business group due to one or more of the following reasons:
|
|
·
|
a substantial part of the assets of the company is involved in the business group, whether as investments in securities, equity rights, loans or guaranties;
|
|
·
|
the company has a significant level of indebtedness and the business group has a material participation as a lender or guarantor;
|
|
·
|
any member of a group of controlling entities of a company mentioned in the first two bullets above and there are grounds to include it in the business group; or
|
|
·
|
the company is controlled by a member of a group of controlling entities and there are grounds to include it in the business group.
|
|
·
|
the merger of two or more banks;
|
|
·
|
the acquisition of all or a substantial portion of a banks’ assets and liabilities by another bank;
|
|
·
|
the control by the same person, or controlling group, of two or more banks; or
|
|
·
|
a substantial increase in the existing control of a bank by a controlling shareholder of that bank.
|
|
·
|
the bank or banks maintaining regulatory capital higher than 8.0% and up to 14.0% of risk-weighted assets;
|
|
·
|
the technical reserve established in Article 65 of the General Banking Law being applicable when deposits exceed one and a half times the resulting bank’s paid-in capital and reserves; or
|
|
·
|
the margin for interbank loans be reduced to 20.0% of the resulting bank’s regulatory capital.
|
Taxable income
|
US$ 100
|
|
First Category Tax (20% of US$100)
|
(20
|
) |
Net proceeds available
|
80
|
|
Dividend payment
|
80
|
|
Withholding Tax (35% of the sum of the dividend (US$80) and the available First Category Tax credit (US$20))
|
(35
|
) |
First Category Tax credit
|
(20
|
) |
Payable Withholding Tax
|
(15)
|
|
Net dividend received
|
65 (80-15
|
) |
Effective dividend withholding tax rate
|
18.75
(15/80
|
%
)
|
·
|
certain financial institutions;
|
·
|
insurance companies;
|
·
|
dealers and traders in securities who use a mark-to-market method of tax accounting;
|
·
|
persons holding shares or ADSs as part of a hedge, “straddle,” conversion transaction, or integrated transaction;
|
·
|
persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;
|
·
|
partnerships or other entities classified as partnerships for U.S. federal income tax purposes;
|
·
|
persons liable for the alternative minimum tax;
|
·
|
tax-exempt entities, including “individual retirement accounts” or “Roth IRAs”;
|
·
|
persons holding shares of our common stock or ADSs that own or are deemed to own ten percent or more of our voting stock;
|
·
|
persons who acquired shares of our common stock or ADSs pursuant to the exercise of any employee stock option plan or otherwise as compensation; or
|
·
|
persons whose shares or ADSs are held in connection with a trade or business conducted outside the United States.
|
·
|
a citizen or resident of the United States;
|
·
|
a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, a state thereof or the District of Columbia
|
·
|
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.
|
|
·
|
trading in financial instruments, which exposes us to interest rate and foreign exchange rate risk;
|
|
·
|
engaging in banking activities, which subjects us to interest rate risk, since a change in interest rates affected gross interest income, gross interest expense and customer behavior;
|
|
·
|
engaging in banking activities, which exposes us to inflation rate risk, since a change in expected inflation affects gross interest income, gross interest expense and customer behavior;
|
|
·
|
trading in the local equity market, which subjects us to potential losses caused by fluctuations of the stock market; and
|
|
·
|
investing in assets whose returns or accounts are denominated in currencies other than the Chilean peso, which subjects us to foreign exchange risk between the Chilean peso and such other currencies.
|
|
·
|
UF-denominated assets and liabilities. In 2011, UF inflation was +3.9% compared to +2.5% in 2010 and -2.4% in 2009. The effect of any changes in the nominal peso value of our UF-denominated interest earning assets and interest bearing liabilities is reflected in our results of operations as an increase (or decrease, in the event of deflation) in interest income and expense, respectively. Our net interest income will be positively affected by an inflationary environment to the extent that our average UF-denominated interest earning assets exceed our average UF-denominated interest bearing liabilities. Our net interest income will be negatively affected in a deflationary environment if our average UF-denominated interest earning assets exceed our average UF-denominated interest bearing liabilities. Our net interest income will be negatively affected by inflation in any period in which our average UF-denominated interest bearing liabilities exceed our average UF-denominated interest earning assets. Our average UF-denominated interest earning assets exceeded our average UF-denominated interest bearing liabilities by Ch$3,611,046 million, Ch$3,171,140 million in 2010 and Ch$2,689,614 million in 2009. See “Item 5: F. Selected Statistical Information―Average Balance Sheets, Income Earned from Interest-Earning Assets And Interest Paid on Interest Bearing Liabilities.” In general, the Bank has more UF-denominated financial assets than UF-denominated financial liabilities. In the year-ended December 31, 2011, the interest earned on interest earning assets denominated in UF increased 30.8% compared to 2010 as a result of the larger gap between UF-denominated average interest-earning assets and UF-denominated average interest bearing liabilities and the increase in UF inflation. The interest paid on these liabilities increased 32.8% in 2011 compared to 2010 and reached Ch$388,349 during the year ended December 31, 2011.
|
|
·
|
Inflation and interest rate hedge. A key component of our asset and liability policy is the management of interest rate risk. The Bank’s assets generally have a longer maturity than our liabilities. As the Bank’s mortgage portfolio grows, the maturity gap tends to rise as these loans, which are contracted in UF, have a longer maturity than the average maturity of our funding base. As most of our long term financial instruments and mortgage loans are contracted in UF and most of our deposits are in nominal pesos, the rise in mortgage lending increases the Bank’s exposure to inflation and to interest rate risk. The size of this gap is limited by internal and regulatory guidelines in order to avoid excessive potential losses due to strong shifts in interest rates. In order to keep this duration gap below regulatory limits, the Bank issues long term bonds denominated in UF or interest rate swaps. The financial cost of the bonds and the efficient part of these hedges is recorded as net interest income. In 2011, the gain from the swaps taken in order to hedge mainly for inflation and interest rate risk totaled a loss of Ch$58,775 million compared to a loss of Ch$2,008 million in 2010 and a gain of Ch$24,988 million in 2009.
|
As of December 31,
|
% Change
|
% Change
|
||||||||||||||||||
Inflation sensitive income
|
2011
|
2010
|
2009
|
2011/2010 | 2010/2009 | |||||||||||||||
(In million of Chilean pesos)
|
||||||||||||||||||||
Interest earned on UF assets(1)
|
703,286 | 537,621 | 224,614 | 30.8 | % | 139.4 | % | |||||||||||||
Interest paid on UF liabilities(1)
|
(388,349 | ) | (292,362 | ) | (67,559 | ) | 32.8 | % | 332.8 | % | ||||||||||
Hedging results
|
(58,775 | ) | (2,008 | ) | 24,988 | 2,827.0 | % | – | % | |||||||||||
Net gain
|
256,162 | 243,251 | 182,043 | 5.3 | % | 33.6 | % |
|
·
|
Peso-denominated assets and liabilities. Interest rates prevailing in Chile during any period primarily reflect the inflation rate during the period and the expectations of future inflation. The sensitivity of our peso-denominated interest earning assets and interest bearing liabilities to changes to such prevailing rates varies. (See “Item 5: C. Operating Results—Interest Rates”). We maintain a substantial amount of non-interest bearing peso-denominated demand deposits. Because such deposits are not sensitive to inflation, any decline in the rate of inflation would adversely affect our net interest margin on inflation indexed assets funded with such deposits, and any increase in the rate of inflation would increase the net interest margin on such assets. The ratio of the average of such demand deposits and average shareholder’s equity to average interest-earning assets was 27.2%, 27.9% and 25.0% for the years ended December 31, 2011, 2010 and 2009, respectively.
|
On-Demand
|
Up to 1 month
|
Between 1 and 3 months
|
Between 3 and 12 months
|
Between 1 and 5 years
|
More than 5 years
|
Total
|
||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||
Cash and deposits in banks
|
2,793,701 | - | - | - | - | - | 2,793,701 | |||||||||||||||||||||
Unsettled transactions
|
276,454 | - | - | - | - | - | 276,454 | |||||||||||||||||||||
Trading investments
|
- | 27,909 | 40,608 | 272,544 | 44,857 | 23,845 | 409,763 | |||||||||||||||||||||
Investment, under resale agreements
|
- | 12,928 | - | - | - | - | 12,928 | |||||||||||||||||||||
Financial derivative contracts
|
- | 63,090 | 167,558 | 295,674 | 684,260 | 391,314 | 1,601,896 | |||||||||||||||||||||
Interbank loans
|
36,785 | 50,903 | - | - | - | - | 87,688 | |||||||||||||||||||||
Loans
|
492,635 | 1,510,419 | 1,277,005 | 2,653,577 | 5,697,193 | 5,716,265 | 17,347,094 | |||||||||||||||||||||
Available for sale investments
|
- | 607,472 | 190,642 | 180,451 | 403,577 | 279,169 | 1,661,311 | |||||||||||||||||||||
Total Interest-earning assets
|
3,599,575 | 2,272,721 | 1,675,813 | 3,402,246 | 6,829,887 | 6,410,593 | 24,190,835 | |||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Deposits and other demand obligations
|
4,413,815 | - | - | - | - | - | 4,413,815 |
On-Demand
|
Up to 1 month
|
Between 1 and 3 months
|
Between 3 and 12 months
|
Between 1 and 5 years
|
More than 5 years
|
Total
|
||||||||||||||||||||||
Unsettled transactions
|
89,486 | - | - | - | - | - | 89,486 | |||||||||||||||||||||
Investments under repurchase agreements
|
- | 463,083 | 78,712 | 2,586 | - | - | 544,381 | |||||||||||||||||||||
Time deposits and other time liabilities
|
105,463 | 4,415,765 | 2,509,308 | 1,496,193 | 371,736 | 22,649 | 8,921,114 | |||||||||||||||||||||
Financial derivative contracts
|
- | 64,290 | 158,204 | 209,746 | 513,944 | 346,218 | 1,292,402 | |||||||||||||||||||||
Interbank borrowings
|
194,451 | 7,750 | 470,749 | 1,068,014 | 179,128 | - | 1,920,092 | |||||||||||||||||||||
Issued debt instruments
|
- | 3,788 | 15 | 890,086 | 2,286,059 | 1,443,291 | 4,623,239 | |||||||||||||||||||||
Other financial liabilities
|
50,840 | 761 | 980 | 3,497 | 39,025 | 81,496 | 176,599 | |||||||||||||||||||||
Total interest-bearing liabilities
|
4,854,055 | 4,955,437 | 3,217,968 | 3,670,122 | 3,389,892 | 1,893,654 | 21,981,128 |
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
% of Total
Average
Liabilities
|
Average
Nominal
Rate
|
Average
Balance
|
% of Total
Average
Liabilities
|
Average
Nominal
Rate
|
Average
Balance
|
% of Total
Average
Liabilities
|
Average
Nominal
Rate
|
||||||||||||||||||||||||||||
(millions of Ch$, except percentages)
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
103,085 | 0.4 | % | 3.6 | % | 102,732 | 0.5 | % | 1.2 | % | 100,294 | 0.5 | % | (1.0 | %) | |||||||||||||||||||||
Time deposits
|
9,107,719 | 37.7 | % | 4.9 | % | 7,482,544 | 35.9 | % | 3.0 | % | 8,355,446 | 41.8 | % | 2.8 | % | |||||||||||||||||||||
Central Bank borrowings
|
3,097 | 0.0 | % | 6.0 | % | 304,292 | 1.5 | % | 0.5 | % | 297,346 | 1.5 | % | 0.9 | % | |||||||||||||||||||||
Repurchase agreements
|
249,174 | 1.0 | % | 3.5 | % | 196,719 | 0.9 | % | 1.2 | % | 486,000 | 2.4 | % | 2.9 | % | |||||||||||||||||||||
Mortgage finance bonds
|
174,224 | 0.7 | % | 9.2 | % | 224,436 | 1.1 | % | 7.8 | % | 301,501 | 1.5 | % | 2.8 | % | |||||||||||||||||||||
Other interest bearing liabilities
|
6,128,052 | 25.4 | % | 5.2 | % | 5,126,595 | 24.6 | % | 4.5 | % | 3,909,793 | 19.6 | % | 2.5 | % | |||||||||||||||||||||
Subtotal interest bearing liabilities
|
15,765,351 | 65.2 | % | 5.1 | % | 13,437,318 | 64.5 | % | 3.5 | % | 13,450,380 | 67.3 | % | 2.6 | % | |||||||||||||||||||||
Non-interest bearing liabilities
|
||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits
|
3,575,544 | 14.8 | % | 3,152,513 | 15.1 | % | 2,475,050 | 12.4 | % | |||||||||||||||||||||||||||
Derivatives
|
1,457,638 | 6.1 | % | 1,323,161 | 6.3 | % | 1,387,026 | 6.9 | % | |||||||||||||||||||||||||||
Other non-interest bearing liabilities
|
1,340,699 | 5.6 | % | 1,192,374 | 5.7 | % | 1,079,516 | 5.4 | % | |||||||||||||||||||||||||||
Shareholders’ equity
|
1,994,487 | 8.3 | % | 1,752,329 | 8.4 | % | 1,599,938 | 8.0 | % | |||||||||||||||||||||||||||
Subtotal non-interest bearing liabilities
|
8,368,368 | 34.8 | % | 7,420,377 | 35.5 | % | 6,541,530 | 32.7 | % | |||||||||||||||||||||||||||
Total liabilities
|
24,133,719 | 100.0 | % | 20,857,695 | 100.0 | % | 19,991,910 | 100.0 | % |
As of December 31, 2011, Ch$ million
|
||||||||||||||||||||
Ch$ (1)
|
UF
|
Ch$ linked to US$
|
US$
|
Total
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and deposits
|
1,837,088 | - | - | 956,613 | 2,793,701 | |||||||||||||||
Unsettled transactions
|
219,469 | - | - | 56,985 | 276,454 | |||||||||||||||
Trading investments
|
73,435 | 336,328 | - | - | 409,763 | |||||||||||||||
Investments under agreements to resell
|
12,262 | 666 | - | - | 12,928 | |||||||||||||||
Financial derivative contracts
|
1,601,896 | - | - | - | 1,601,896 | |||||||||||||||
Interbank loans
|
- | - | - | 87,677 | 87,677 | |||||||||||||||
Loans and receivables from customers
|
6,561,443 | 8,729,023 | 52,789 | 1,515,382 | 16,858,637 | |||||||||||||||
Available for sale investments
|
1,568,022 | 81,651 | - | 11,638 | 1,661,311 | |||||||||||||||
Investments held to maturity
|
- | - | - | - | - | |||||||||||||||
Investments in other companies
|
8,728 | - | - | - | 8,728 | |||||||||||||||
Intangible assets
|
80,739 | - | - | - | 80,739 | |||||||||||||||
Property, plant and equipment
|
153,059 | - | - | - | 153,059 | |||||||||||||||
Current taxes
|
37,253 | - | - | - | 37,253 | |||||||||||||||
Deferred taxes
|
136,521 | - | - | - | 136,521 | |||||||||||||||
Other assets (2)
|
301,385 | 89,739 | 9,467 | 149,735 | 550,326 | |||||||||||||||
Total assets
|
12,591,300 | 9,237,407 | 62,256 | 2,778,030 | 24,668,993 | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits and other sight obligations
|
3,806,618 | 179,754 | - | 427,443 | 4,413,815 | |||||||||||||||
Unsettled transactions
|
21,681 | - | - | 67,805 | 89,486 | |||||||||||||||
Investment under agreements to repurchase
|
447,230 | 159 | - | 96,992 | 544,381 | |||||||||||||||
Deposits and other time deposits
|
5,585,988 | 2,140,400 | - | 1,194,726 | 8,921,114 | |||||||||||||||
Financial derivative contracts
|
1,292,402 | - | - | - | 1,292,402 | |||||||||||||||
Interbank borrowings
|
- | 810 | - | 1,919,282 | 1,920,092 | |||||||||||||||
Issued debt instruments
|
254,263 | 2,707,657 | - | 1,661,319 | 4,623,239 | |||||||||||||||
Other financial liabilities
|
156,461 | 13,167 | 5,949 | 1,022 | 176,599 | |||||||||||||||
Current taxes
|
1,498 | - | - | - | 1,498 | |||||||||||||||
Deferred taxes
|
5,315 | - | - | - | 5,315 | |||||||||||||||
Provisions
|
187,557 | - | - | - | 187,557 | |||||||||||||||
Other liabilities (2)
|
94,796 | 29,370 | 2,453 | 272,358 | 398,977 | |||||||||||||||
Total liabilities
|
11,853,809 | 5,071,317 | 8,402 | 5,640,947 | 22,574,475 | |||||||||||||||
Equity
|
||||||||||||||||||||
Attributable to Bank Shareholders
|
||||||||||||||||||||
Capital
|
891,303 | - | - | - | 891,303 | |||||||||||||||
Reserves
|
51,539 | - | - | - | 51,539 | |||||||||||||||
Valuation adjustment
|
2,832 | - | - | - | 2,832 | |||||||||||||||
Retained earnings :
|
1,115,043 | - | - | - | 1,115,043 | |||||||||||||||
Retained earnings of prior periods
|
833,830 | - | - | - | 833,830 | |||||||||||||||
Net income for the period
|
401,733 | - | - | - | 401,733 | |||||||||||||||
Minus: Provision for mandatory dividends
|
(120,520 | ) | - | - | - | (120,520 | ) | |||||||||||||
Non-controlling interest
|
33,801 | - | - | - | 33,801 | |||||||||||||||
Total Equity
|
2,094,518 | - | - | - | 2,094,518 | |||||||||||||||
Total liabilities and equity
|
13,948,327 | 5,071,317 | 8,402 | 5,640,947 | 24,668,993 |
(1)
|
Includes the value of swap instruments and balances of executed transactions which contractually defer the payment of sales transactions or the delivery of foreign currency acquired.
|
(2)
|
Other assets and liabilities include the threshold position from derivative contracts.
|
|
·
|
The sum of the liabilities with a maturity of less than 30 days may not exceed the sum of the assets with a maturity of less than 30 days by more than an amount greater than our capital. This limit must be calculated in local currency and foreign currencies together as one gap. At December 31, 2011 the percentage of (i) our liabilities with a maturity of less than 30 days in excess of our assets with a maturity of less than 30 days to (ii) our capital and reserves was 21%.
|
|
·
|
The sum of the liabilities in foreign currency with a maturity of less than 30 days may not exceed the sum of the assets in foreign currency with a maturity of less than 30 days by more than an amount greater than our capital. At December 31, 2011 the percentage of (i) our liabilities with a maturity of less than 30 days in foreign currency in excess of our assets in foreign currency with a maturity of less than 30 days to (ii) our capital and reserves was 17%.
|
|
·
|
The sum of the liabilities with a maturity of less than 90 days may not exceed the sum of the assets with a maturity of less than 90 days by more than 2 times our capital. This limit must be calculated in local currency and foreign currencies together as one gap. At December 31, 2011 the percentage of (i) our liabilities with a maturity of less than 90 days in excess of our assets with a maturity of less than 90 days to (ii) our capital and reserves was 53%.
|
|
·
|
trading portfolio;
|
|
·
|
local financial management portfolio;
|
|
·
|
foreign financial management portfolio.
|
|
·
|
Changes in market rates and prices may not be independent and identically distributed random variables, and may not have a normal distribution; In particular, the assumption of normal distribution may underestimate the probability of extreme market movements;
|
|
·
|
The historical data used by the Bank may not provide the best estimate of the joint distribution of changes in the risk factors in the future, and any modification of the data may be inadequate; In particular, the use of historical data may fail to capture the risk of potential extreme and adverse market fluctuations, regardless of the time period used;
|
|
·
|
A 1–day time horizon may not fully capture the market risk positions which cannot be liquidated or covered in a single day; It would not be possible to liquidate or cover all the positions in a single day;
|
|
·
|
The VaR is calculated at the close of business, but trading positions may change substantially in the course of the trading day;
|
|
·
|
The use of a 99% degree of confidence does not take account of, or make any statement about, the losses that could occur outside of that degree of confidence; and
|
|
·
|
A model such as the VaR does not capture all the complex effects of the risk factors over the value of the positions or portfolios, and accordingly, it could underestimate potential losses.
|
Consolidated
|
2011
|
2010
|
2009
|
|||||||||
(in millions of $US)
|
||||||||||||
VaR:
|
||||||||||||
High
|
11.02 | 11.18 | 9.79 | |||||||||
Low
|
2.39 | 3.53 | 4.24 | |||||||||
Average
|
6.07 | 7.25 | 5.98 | |||||||||
Fixed–income investments:
|
||||||||||||
High
|
11.18 | 11.37 | 9.14 | |||||||||
Low
|
2.54 | 3.63 | 4.22 | |||||||||
Average
|
6.09 | 7.21 | 5.87 | |||||||||
Variable–income investments:
|
||||||||||||
High
|
0.23 | 0.18 | 1.65 | |||||||||
Low
|
0.00 | 0.02 | 0.04 | |||||||||
Average
|
0.07 | 0.09 | 0.17 | |||||||||
Foreign currency investments
|
||||||||||||
High
|
3.87 | 3.91 | 7.02 | |||||||||
Low
|
0.09 | 0.48 | 0.66 | |||||||||
Average
|
0.9 | 1.68 | 2.31 |
|
·
|
The simulation of scenarios assumes that the volumes remain in the Bank’s Consolidated General Balance Sheet and are always renewed at maturity, thereby omitting the fact that certain credit risk and prepayment considerations may affect the maturity of certain positions.
|
|
·
|
This model assumes an identical change along the entire length of the yield curve and takes no account of the different movements for different maturities.
|
|
·
|
The model takes no account of the sensitivity of volumes which results from interest rate changes.
|
|
·
|
The limits to losses of budgeted financial income are calculated on the basis of the financial income foreseen for the year, which may not be actually earned, meaning that the real percentage of financial income at risk may be higher than the expected one.
|
2011
|
2010
|
2009
|
||||||||||||||||||||||
Effect on net interest income
|
Effect on equity
|
Effect on net interest income
|
Effect on equity
|
Effect on net interest income
|
Effect on equity
|
|||||||||||||||||||
Financial management portfolio – local currency (in millions of $Ch$)
|
||||||||||||||||||||||||
Loss limit
|
22,380 | 167,530 | 37,300 | 152,300 | 37,264 | 127,000 | ||||||||||||||||||
High
|
19,823 | 107,745 | 16,849 | 126,306 | 17,711 | 123,834 | ||||||||||||||||||
Low
|
590 | 71,805 | 2,974 | 86,573 | 1,504 | 95,791 | ||||||||||||||||||
Average
|
9,053 | 93,328 | 10,317 | 109,133 | 6,404 | 107,239 | ||||||||||||||||||
Financial management portfolio – foreign currency (in millions of $US)
|
||||||||||||||||||||||||
Loss limit
|
44.0 | 44.0 | 46.0 | 74.0 | 46.0 | 74.0 | ||||||||||||||||||
High
|
22.8 | 16.0 | 25.8 | 11.9 | 18.4 | 17.3 | ||||||||||||||||||
Low
|
3.0 | 1.2 | 0.4 | 0.3 | 1.2 | 1.5 | ||||||||||||||||||
Average
|
14.1 | 7.8 | 14.6 | 3.1 | 6.9 | 11.4 | ||||||||||||||||||
Financial management portfolio – consolidated (in millions of $Ch$)
|
||||||||||||||||||||||||
Loss limit
|
37,300 | 167,530 | 37,300 | 152,300 | 37,264 | 127,000 | ||||||||||||||||||
High
|
21,149 | 107,845 | 20,129 | 126,309 | 17,724 | 123,836 | ||||||||||||||||||
Low
|
7,032 | 71,863 | 7,010 | 86,575 | 1,939 | 96,280 | ||||||||||||||||||
Average
|
13,004 | 93,417 | 12,993 | 109,156 | 8,188 | 107,495 |
Regulatory Market Risk
|
As of December 31, 2011
|
|||
(Ch$ million)
|
||||
Market risk of trading portfolio (EMR)
|
||||
Interest rate risk of trading portfolio
|
55,895 | |||
Foreign currency risk of trading portfolio
|
3,188 | |||
Risk from interest rate options
|
86,824 | |||
Risk from foreign currency options
|
434 | |||
Total market risk of trading portfolio
|
146,341 | |||
10% x Risk-weighted assets
|
1,865,474 | |||
Subtotal
|
2,011,815 | |||
Limit = Regulatory Capital
|
2,687,016 | |||
Available margin
|
675,201 | |||
Non-trading portfolio market risk
|
||||
Short-term interest rate risk
|
42,440 | |||
Inflation risk
|
52,441 | |||
Long-term interest rate risk
|
357,662 | |||
Total market risk of non-trading portfolio
|
452,543 | |||
Regulatory limit of exposure to short-term interest rate and inflation risk
|
||||
Short-term exposure to interest rate risk
|
42,440 | |||
Exposure to inflation risk
|
52,441 | |||
Limit: 20% of (net interest income + net fee income sensitive to interest rates)
|
190,935 | |||
Available margin
|
96,054 | |||
Regulatory limit of exposure to long-term interest rate risk
|
||||
Long-term exposure to interest rate risk
|
357,662 | |||
35% of regulatory capital
|
940,456 | |||
Available margin
|
582,794 |
Currency
|
Limit (US$mn)
|
||
U.S. dollars
|
200
|
||
Euros
|
75
|
||
Yen
|
30
|
||
Real
|
20
|
||
Mexican peso
|
20
|
||
Colombian peso
|
20
|
||
Other European currencies
|
20
|
||
Other Latin American currencies
|
10
|
||
Other currencies
|
5
|
||
Total Limit
|
200
|
|
·
|
When a cash flow hedge exists, the fair value movements on the part of the hedging instrument that is effective are recognized in equity. Any ineffective portion of the fair value movement on the hedging instrument is recognized in the income statement.
|
|
·
|
When a fair value hedge exists, the fair value movements on the hedging instrument and the corresponding fair value movements on the hedged item are recognized in the income statement. Hedged items in the balance sheet are presented at their market value.
|
|
·
|
When a hedge of foreign investment exposure exists (i.e. investment in a foreign branch), the fair value movements on the part of the hedging instrument that is effective are recognized in equity. Any ineffective portion of the fair value movement on the hedging instrument is recognized in the income statement.
|
As of December 31, 2011
|
||||||||||||||||||||
Notional amounts
|
Fair Value
|
|||||||||||||||||||
Within 3 months
|
After 3 months but within one year
|
After one year
|
Assets
|
Liabilities
|
||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Fair value hedge derivative instruments
|
||||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | 368,885 | 444,845 | 22,374 | 35 | |||||||||||||||
Cross currency swaps
|
30,989 | - | 277,469 | 20,498 | 869 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
30,989 | 368,885 | 722,314 | 42,872 | 904 | |||||||||||||||
Cash Flow hedge derivative instruments
|
||||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | - | - | - | - | |||||||||||||||
Cross currency swaps
|
284,875 | 1,234,882 | 394,050 | 94,544 | 713 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
284,875 | 1,234,882 | 394,050 | 94,544 | 713 | |||||||||||||||
Derivative instruments for trading
|
||||||||||||||||||||
Currency forwards
|
14,305,612 | 8,473,390 | 604,935 | 264,574 | 217,022 | |||||||||||||||
Interest rate swaps
|
5,527,118 | 11,459,132 | 13,716,043 | 265,084 | 302,327 | |||||||||||||||
Cross currency swaps
|
1,405,419 | 2,511,430 | 10,688,479 | 934,045 | 769,203 | |||||||||||||||
Call currency options
|
36,180 | 23,502 | - | 740 | 560 | |||||||||||||||
Call interest rate options
|
5,855 | 18,773 | 29,672 | 68 | 256 | |||||||||||||||
Put currency options
|
14,416 | 17,503 | - | 750 | 1,017 | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
102,084 | 1,694 | - | 219 | 400 | |||||||||||||||
Subtotal
|
21,396,684 | 22,505,424 | 25,039,129 | 1,464,480 | 1,290,785 | |||||||||||||||
Total
|
21,712,548 | 24,109,191 | 26,155,493 | 1,601,896 | 1,292,402 |
As of December 31, 2010
|
||||||||||||||||||||
Notional amounts
|
Fair Value
|
|||||||||||||||||||
Within 3 months
|
After 3 months but within one year
|
After one year
|
Assets
|
Liabilities
|
||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Fair value hedge derivative instruments
|
||||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | - | 702,306 | 5,827 | 6,464 | |||||||||||||||
Cross currency swaps
|
28,090 | 229,296 | 387,024 | 5,296 | 28,730 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
28,090 | 229,296 | 1,089,330 | 11,123 | 35,194 | |||||||||||||||
Cash Flow hedge derivative instruments
|
||||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | - | - | - | - | |||||||||||||||
Cross currency swaps
|
147,872 | 999,792 | 379,859 | 494 | 120,563 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
147,872 | 999,792 | 379,859 | 494 | 120,563 | |||||||||||||||
Derivative instruments for trading
|
||||||||||||||||||||
Currency forwards
|
10,374,003 | 6,830,128 | 792,254 | 283,722 | 348,152 | |||||||||||||||
Interest rate swaps
|
2,671,634 | 7,607,192 | 13,475,904 | 204,786 | 250,812 | |||||||||||||||
Cross currency swaps
|
1,081,609 | 2,783,653 | 10,061,745 | 1,123,547 | 887,222 | |||||||||||||||
Call currency options
|
20,724 | 29,247 | 936 | 272 | 233 | |||||||||||||||
Call interest rate options
|
34,076 | 16,690 | 59,676 | 82 | 1,269 | |||||||||||||||
Put currency options
|
6,364 | 4,906 | - | 230 | 385 | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
165,208 | - | - | 122 | 149 | |||||||||||||||
Subtotal
|
14,353,618 | 17,271,816 | 24,390,515 | 1,612,761 | 1,488,222 | |||||||||||||||
Total
|
14,529,580 | 18,500,904 | 25,859,704 | 1,624,378 | 1,643,979 |
As of December 31, 2009
|
||||||||||||||||||||
Notional amounts
|
Fair Value
|
|||||||||||||||||||
Within 3 months
|
After 3 months but within one year
|
After one year
|
Assets
|
Liabilities
|
||||||||||||||||
(in millions of Ch$)
|
||||||||||||||||||||
Fair value hedge derivative instruments
|
- | |||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | 86,963 | 580,132 | 2,446 | 3,794 | |||||||||||||||
Cross currency swaps
|
- | 26,079 | 583,035 | 16,972 | 805 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
- | 113,042 | 1,163,167 | 19,418 | 4,599 | |||||||||||||||
Cash Flow hedge derivative instruments
|
||||||||||||||||||||
Currency forwards
|
- | - | - | - | - | |||||||||||||||
Interest rate swaps
|
- | - | - | - | - | |||||||||||||||
Cross currency swaps
|
51,993 | 582,830 | 73,551 | 4,741 | 52,301 | |||||||||||||||
Call currency options
|
- | - | - | - | - | |||||||||||||||
Call interest rate options
|
- | - | - | - | - | |||||||||||||||
Put currency options
|
- | - | - | - | - | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
- | - | - | - | - | |||||||||||||||
Subtotal
|
51,993 | 582,830 | 73,551 | 4,741 | 52,301 | |||||||||||||||
Derivative instruments for trading
|
||||||||||||||||||||
Currency forwards
|
6,533,147 | 4,195,874 | 587,541 | 199,665 | 184,112 | |||||||||||||||
Interest rate swaps
|
2,418,161 | 4,240,574 | 9,618,573 | 243,965 | 330,975 | |||||||||||||||
Cross currency swaps
|
887,942 | 1,594,972 | 9,880,693 | 922,498 | 772,959 | |||||||||||||||
Call currency options
|
34,341 | 22,107 | - | 203 | 43 | |||||||||||||||
Call interest rate options
|
122 | 5,189 | 39,900 | 281 | 595 | |||||||||||||||
Put currency options
|
33,198 | 15,487 | - | 3,083 | 3,232 | |||||||||||||||
Put interest rate options
|
- | - | - | - | - | |||||||||||||||
Interest rate future
|
- | - | - | - | - | |||||||||||||||
Other Derivatives
|
29,320 | - | - | 24 | 90 | |||||||||||||||
Subtotal
|
9,936,231 | 10,074,203 | 20,126,707 | 1,369,719 | 1,292,006 | |||||||||||||||
Total
|
9,988,224 | 10,770,075 | 21,363,425 | 1,393,878 | 1,348,906 |
|
·
|
Santander S.A. Corredores de Bolsa
|
|
·
|
Santander Asset Management S.A. Administradora General de Fondos
|
|
·
|
Santander S.A. Sociedad Securitizadora
|
|
·
|
Santander Corredores de Seguros Ltda.
|
|
·
|
Santander Servicios de Recaudación y Pagos Ltda.
|
|
·
|
Fees charged to investors as outlined in the deposit agreement are the following:
|
Category of Service
|
Depositary Actions
|
Associated Fee
|
||
(a) Deposit or substituting the underlying shares
|
Each person to whom ADSs are issued against deposits of shares, including deposits in respect of share distributions, rights and other distributions. 1
Each person surrendering ADRs for the withdrawal of deposited securities.
|
$5.00 for each 100 ADSs (or portion thereof) delivered or surrendered.
|
||
(b) Receiving or distributing dividends
|
Distribution of dividends.
|
$0.01 per ADS.
|
||
(c) Selling or Exercising Rights
|
Distribution or sale of securities, the fee being in an amount equal to the fee for the execution and delivery of ADSs which would have been charged as a result of the deposit of such securities.
|
$5.00 for each 100 ADSs (or
portion thereof).
|
||
(d) Withdrawing an underlying security
|
Acceptance of ADRs surrendered for withdrawal of
deposited securities.
|
$5.00 for each 100 ADSs (or
portion thereof) evidenced by the ADRs surrendered.
|
Category of Service
|
Depositary Actions
|
Associated Fee
|
||
(d) Expenses of the Depositary
|
Expenses incurred on behalf of holders in connection with:
i) Stock transfer or other taxes and other governmental charges.
ii) Cable, telex and facsimile transmission and delivery.
iii) Expenses of the Depositary in connection with the conversion of foreign currency into US dollars (which are paid out of such foreign currency).
iv) Such fees and expenses as are incurred by the Depositary (including without limitation expenses incurred on behalf of holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in delivery of deposited securities or otherwise in connection with the Depositary’s or its Custodian’s compliance with applicable law, rule or regulation.
|
Expenses payable at the sole discretion of the depositary.
|
|
·
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank;
|
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS-IASB, and that our receipts and expenditures are being made only in accordance with authorizations of the Bank’s management and directors; and
|
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
2011
|
2010
|
|||||||
(in millions of Ch$)
|
||||||||
Audit Fees
|
||||||||
- Statutory audit
|
325 | 550 | ||||||
- Audit-related regulatory reporting
|
148 | 321 | ||||||
Tax Fees
|
||||||||
- Compliance
|
– | |||||||
- Advisory Services
|
89 | 92 | ||||||
All Other Fees
|
442 | 183 | ||||||
Total
|
1,004 | 1,146 |
|
·
|
Whether a company’s executive officers may serve as its directors – the NYSE standards do not prohibit a U.S. company’s executive officer from also serving as a director, whereas our corporate governance standards prohibits this.
|
|
·
|
Whether the shareholders must be given an opportunity to vote on equity-compensation plans – the NYSE standards require that shareholders be allowed to vote on all equity compensation plans of a U.S. company, whereas our corporate governance standards only require that shareholders be allowed to vote on director compensation.
|
|
·
|
The adoption and disclosure of corporate governance guidelines – the NYSE standards require all U.S. companies listed on the NYSE to adopt the NYSE corporate governance guidelines, whereas we follow the corporate governance guidelines established under Chilean law.
|
|
·
|
Board of Directors mainly composed of professionals not related to Banco Santander Spain, our parent company.
|
|
·
|
Active participation of Directors in main committees of the Bank.
|
|
·
|
All personnel must subscribe to a code of ethics and good conduct. Those who interact directly with the capital markets must also subscribe to an additional code of conduct.
|
|
·
|
Segregation of functions in order to assure adequate management of risks. Commercial areas separated from back office areas. Risk management independent of commercial areas. Main credit decisions taken in committees.
|
|
·
|
Internal Auditing Area clearly independent from the Administration.
|
|
·
|
The Bank also has an Internal Compliance Division that oversees the fulfillment of the Bank’s codes of conduct.
|
|
·
|
Equal treatment for all shareholders: one share equals to one vote.
|
|
·
|
Monthly publication of the Bank’s results by the Superintendency of Banks.
|
|
·
|
Quarterly report of a detailed analysis of Bank results published by us at least 30 days after the close of each interim quarter and 40 days after close of the full year.
|
|
·
|
Quarterly conference call open to the public.
|
|
·
|
All information relevant to the public available immediately on the web page www.santander.cl.
|
|
·
|
Ample and periodic coverage of the Bank by international and local stock analysts.
|
|
·
|
The Bank has five credit risk ratings by five independent rating agencies, domestic and international.
|
Review report of independent registered public accounting firm
|
F-3
|
Audited consolidated financial statements:
|
|
Consolidated Statements of Financial Position as of December 31, 2011 and 2010
|
F-4
|
Consolidated Statements of Income for each of the three years in the period ended December 31, 2011, 2010 and 2009
|
F-5
|
Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2011, 2010 and 2009
|
F-6
|
Consolidated Statements of Changes in Equity for each of the three years in the period ended December 31, 2011, 2010 and 2009
|
F-7
|
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2011, 2010 and 2009
|
F-8
|
Notes to consolidated financial statements
|
F-9
|
Exhibit
Number
|
Description
|
1A.1
|
Restated Articles of Incorporation of Santander-Chile (Spanish Version) (incorporated by reference to our Registration Statement on Form F-4 (Registration No. 333-100975) filed with the Commission on December 12, 2002).
|
1A.2
|
Restated Articles of Incorporation of Santander-Chile (English Version) (incorporated by reference to our Registration Statement on Form F-4 (Registration No. 333-100975) filed with the Commission on December 12, 2002).
|
1B.1
|
Amended and Restated By-Laws (estatutos) of Santander-Chile (Spanish Version) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-4554) filed with the Commission on June 30, 2005).
|
1B.2
|
Amended and Restated By-Laws (estatutos) of Santander-Chile (English Version) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-4554) filed with the Commission on June 30, 2005).
|
2A.1
|
Form of Amended and Restated Deposit Agreement, dated August 4, 2008, among Banco Santander-Chile, JPMorgan Chase Bank, N.A. (as depositary) and Holders of American Depositary Receipts (incorporated by reference to our Registration Statement on Form F-6 (Registration No. 333-152664) filed with the Commission on July 31, 2008).
|
2A.2
|
Form of Foreign Investment Contract among Banco Santiago, JPMorgan Chase Bank, N.A. and the Central Bank of Chile relating to the foreign exchange treatment of an investment in ADSs (accompanied by an English translation) (incorporated by reference to our Registration Statement on Form F-1 (Registration No. 333-7676) filed with the Commission on October 23, 1997).
|
2A.3
|
Copy of the Central Bank Chapter XXVI Regulations Related to the Acquisition of Shares in Chilean Corporations and the Issuance of Instrument on Foreign Stock Exchanges or under Other Terms and Conditions of Issue (accompanied by an English translation) (incorporated by reference to Old Santander-Chile’s Annual Report for the fiscal year ended December 31, 1996 (File No. 1-13448) filed with the Commission on June 30, 1997).
|
2B.1
|
Agreement for the Issuance of Bonds dated November 26, 1996 between Old Santander-Chile and Banco Security (accompanied by an English translation) (incorporated by reference to Old Santander-Chile’s Annual Report for the fiscal year ended December 31, 1996 (File No. 1-13448) filed with the Commission on June 30, 1997).
|
2B.2
|
Indenture dated December 9, 2004 between Santander-Chile and Deutsche Bank Trust Company Americas, as trustee, providing for issuance of securities in series (incorporated by reference to Banco Santiago’s Annual Report on Form 20-F for the fiscal year ended December 31, 2005 (File No. 1-4554) filed with the Commission on April 12, 2006).
|
2B.3
|
Indenture dated March 16, 2001, as amended on May 30, 2003, October 22, 2004, May 3, 2005, and September 20, 2005 between Santander-Chile and Banco de Chile, as trustee, relating to issuance of UF14 million senior notes (copy to be furnished upon request).
|
4A.1
|
Automatic Teller Machines Participation Agreement dated October 1, 1988 between Banco Español-Chile (predecessor to Old Santander-Chile) and REDBANC (accompanied by an English translation) (incorporated by reference to Old Santander-Chile’s Annual Report for the fiscal year ended
|
December 31, 1996 (File No. 1-13448) filed with the Commission on June 30, 1997). | |
4A.2
|
Outsourcing agreement between Banco Santiago and IBM de Chile S.A.C. dated June 30, 2000 (including English summary) (incorporated by reference to Banco Santiago’s Annual Report on Form 20-F for the fiscal year ended December 31, 2000 (File No. 1-4554) filed with the Commission on June 28, 2001).
|
4A.3
|
Systems and Technology Service and Consulting Agreement between Santander-Chile and Altec dated December 30, 2003 (English translation) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2003 (File No. 1-14554) filed with the Commission on June 29, 2004).
|
4A.4
|
Purchase-Sale Contract between Santander-Chile and Empresas Almacenes París dated December 6, 2004 (English translation) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2005 (File No. 1-14554) filed with the Commission on June 12, 2006).
|
4A.5
|
Service Participant operating contract dated August 9, 2005 between Banco Santander-Chile and Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor (English translation) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2006 (File No. 1-14554) filed with the Commission on June 19, 2007).
|
4A.6
|
Commercial Pledge Agreement dated February 5, 2007 by Santander-Chile of shares in Administrador Financiero de Transantiago (English Translation) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2006 (File No. 1-14554) filed with the Commission on June 19, 2007).
|
4A.7
|
Contract for the Outsourcing of Computer Services between Santander-Chile and Produban, Servicios Informáticos Generales, S.L, dated December 3, 2007 (English translation) (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2007 (File No. 1-14554) filed with the Commission on June 27, 2008).
|
7.1
|
Statement explaining Calculation of Ratios (incorporated by reference to Old Santander-Chile’s Annual Report on Form 20-F for the fiscal year ended December 31, 2000 (File No. 1-13448) filed with the Commission on June 28, 2001).
|
8.1
|
List of Subsidiaries (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-4554) filed with the Commission on June 30, 2005).
|
11.1
|
Code of Conduct for Executive Personnel of Banco Santander-Chile and Subsidiaries (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-4554) filed with the Commission on June 30, 2005).
|
11.2
|
Code of Conduct for all Grupo Santander Personnel (incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-4554) filed with the Commission on June 30, 2005).
|
12.1
|
Section 302 Certification.
|
12.2
|
Section 302 Certification.
|
12.3
|
Section 302 Certification.
|
13.1
|
Section 906 Certification.
|
15.1 | Consent of Deloitte Auditores y Consultores Limitada. |
BANCO SANTANDER-CHILE
|
||
By:
|
/s/ Juan Pedro Santa María
|
|
Name:
|
Juan Pedro Santa María
|
|
Title:
|
General Counsel
|
Index
|
Consolidated Financial Statements | |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
F-4
|
CONSOLIDATED STATEMENTS OF INCOME
|
F-5
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
F-6
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
F-7
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
F-8
|
Notes to the Consolidated Financial Statements
|
|
NOTE 01 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
|
F-10
|
NOTE 02 - ACCOUNTING CHANGES
|
F-34
|
NOTE 03 - SIGNIFICANT EVENTS
|
F-35
|
NOTE 04 - BUSINESS SEGMENTS
|
F-37
|
NOTE 05 - CASH AND CASH EQUIVALENTS
|
F-44
|
NOTE 06 - TRADING INVESTMENTS
|
F-45
|
NOTE 07 - INVESTMENTS UNDER RESALE AGREEMENTS AND OBLIGATIONS UNDER REPURCHASE AGREEMENTS
|
F-46
|
NOTE 08 - DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
|
F-49
|
NOTE 09 - INTERBANK LOANS
|
F-55
|
NOTE 10 - LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS
|
F-56
|
NOTE 11 - LOAN PURCHASES, SALES AND SUBSTITUTIONS
|
F-61
|
NOTE 12 - AVAILABLE FOR SALE INVESTMENTS
|
F-63
|
NOTE 13 - INVESTMENTS IN ASSOCIATES AND OTHER COMPANIES
|
F-68
|
NOTE 14 - INTANGIBLE ASSETS
|
F-70
|
NOTE 15 - PROPERTY, PLANT, AND EQUIPMENT
|
F-72
|
NOTE 16 - CURRENT AND DEFERRED TAXES
|
F-76
|
NOTE 17 - OTHER ASSETS
|
F-79
|
NOTE 18 - TIME DEPOSITS AND OTHER TIME LIABILITIES
|
F-80
|
NOTE 19 - INTERBANK BORROWINGS
|
F-81
|
NOTE 20 - ISSUED DEBT INSTRUMENTS AND OTHER OBLIGATIONS
|
F-83
|
NOTE 21 - MATURITY OF ASSETS AND LIABILITIES
|
F-88
|
NOTE 22 - PROVISIONS
|
F-90
|
NOTE 23 - OTHER LIABILITIES
|
F-92
|
NOTE 24 - CONTINGENCIES AND COMMITMENTS
|
F-93
|
NOTE 25 - EQUITY
|
F-95
|
NOTE 26 - CAPITAL REQUIREMENTS (BASEL)
|
F-99
|
NOTE 27 - NON CONTROLLING INTEREST
|
F-101
|
NOTE 28 - INTEREST INCOME AND EXPENSE
|
F-104
|
NOTE 29 - FEES AND COMMISSIONS
|
F-106
|
NOTE 30 - NET INCOME FROM FINANCIAL OPERATIONS
|
F-107
|
NOTE 31 - NET FOREIGN EXCHANGE PROFIT
|
F-107
|
NOTE 32 - PROVISION FOR LOAN LOSSES
|
F-108
|
NOTE 33 - PERSONNEL SALARIES AND EXPENSES
|
F-109
|
NOTE 34 - ADMINISTRATIVE EXPENSES
|
F-112
|
NOTE 35 - DEPRECIATION, AMORTIZATION AND IMPAIRMENT
|
F-113
|
NOTE 36 - OTHER OPERATING INCOME AND EXPENSES
|
F-114
|
NOTE 37 - TRANSACTIONS WITH RELATED PARTIES
|
F-116
|
NOTE 38 - PENSION PLANS
|
F-121
|
NOTE 39 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES.
|
F-124
|
NOTE 40 - RISK MANAGEMENT
|
F-128
|
NOTE 41 - SUBSEQUENT EVENTS
|
F-139
|
|
Deloitte
Auditores y Consultores Limitada
RUT: 80.276.200-3
Av. Providencia 1760
Pisos 6, 7, 8, 9, 13 y 18
Providencia, Santiago
Chile
Fono: (56-2) 729 7000
Fax: (56-2) 374 9177
e-mail: deloittechile@deloitte.com
www.deloitte.cl
|
2011
|
2011
|
2010
|
||||||||
NOTE
|
ThUS$
|
MCh$
|
MCh$
|
|||||||
ASSETS
|
Note 1 e)
|
|||||||||
Cash and deposits in banks
|
5
|
5,368,888
|
2,793,701
|
1,762,198
|
||||||
Cash items in process of collection
|
5
|
531,285
|
276,454
|
374,368
|
||||||
Trading investments
|
6
|
787,476
|
409,763
|
379,670
|
||||||
Investments under resale agreements
|
7
|
24,845
|
12,928
|
170,985
|
||||||
Financial derivative contracts
|
8
|
3,078,497
|
1,601,896
|
1,624,378
|
||||||
Interbank loans, net
|
9
|
168,496
|
87,677
|
69,672
|
||||||
Loans and accounts receivable from customers, net
|
10
|
32,398,649
|
16,858,637
|
15,232,163
|
||||||
Available for sale investments
|
12
|
3,192,680
|
1,661,311
|
1,473,980
|
||||||
Held to maturity investments
|
12
|
-
|
-
|
-
|
||||||
Investments in other companies
|
13
|
16,773
|
8,728
|
7,275
|
||||||
Intangible assets
|
14
|
155,163
|
80,739
|
77,990
|
||||||
Property, plant and equipment
|
15
|
294,146
|
153,059
|
154,985
|
||||||
Current taxes
|
16
|
71,592
|
37,253
|
12,499
|
||||||
Deferred taxes
|
16
|
262,364
|
136,521
|
100,470
|
||||||
Other assets
|
17
|
1,057,608
|
550,326
|
650,081
|
||||||
TOTAL ASSETS
|
47,408,462
|
24,668,993
|
22,090,714
|
|||||||
LIABILITIES
|
||||||||||
Deposits and other demand liabilities
|
18
|
8,482,396
|
4,413,815
|
4,236,434
|
||||||
Cash items in process of being cleared
|
5
|
171,973
|
89,486
|
300,125
|
||||||
Obligations under repurchase agreements
|
7
|
1,046,182
|
544,381
|
294,725
|
||||||
Time deposits and other time liabilities
|
18
|
17,144,449
|
8,921,114
|
7,258,757
|
||||||
Financial derivative contracts
|
8
|
2,483,717
|
1,292,402
|
1,643,979
|
||||||
Interbank borrowings
|
19
|
3,690,001
|
1,920,092
|
1,584,057
|
||||||
Issued debt instruments
|
20
|
8,884,864
|
4,623,239
|
4,190,888
|
||||||
Other financial liabilities
|
20
|
339,385
|
176,599
|
166,289
|
||||||
Current taxes
|
16
|
2,879
|
1,498
|
1,293
|
||||||
Deferred taxes
|
16
|
10,214
|
5,315
|
5,441
|
||||||
Provisions
|
22
|
360,444
|
187,557
|
209,421
|
||||||
Other liabilities
|
23
|
766,748
|
398,977
|
261,328
|
||||||
TOTAL LIABILITIES
|
43,383,252
|
22,574,475
|
20,152,737
|
|||||||
EQUITY
|
||||||||||
Attributable to Bank shareholders:
|
3,960,252
|
2,060,717
|
1,906,168
|
|||||||
Capital
|
25
|
1,712,891
|
891,303
|
891,303
|
||||||
Reserves
|
25
|
99,047
|
51,539
|
51,539
|
||||||
Valuation adjustments
|
25
|
5,442
|
2,832
|
(5,180
|
) | |||||
Retained earnings
|
25
|
2,142,872
|
1,115,043
|
968,506
|
||||||
Retained earnings of prior years
|
25
|
1,602,441
|
833,830
|
614,731
|
||||||
Income for the period
|
25
|
772,044
|
401,733
|
505,393
|
||||||
Minus: Provision for mandatory dividends
|
25
|
(231,613
|
) |
(120,520
|
) |
(151,618
|
) | |||
Non-controlling interest
|
27
|
64,958
|
33,801
|
31,809
|
||||||
TOTAL EQUITY
|
4,025,210
|
2,094,518
|
1,937,977
|
|||||||
TOTAL LIABILITIES AND EQUITY
|
47,408,462
|
24,668,993
|
22,090,714
|
2011
|
2011
|
2010
|
2009
|
||||||
NOTE
|
ThUS$
|
MCh$
|
MCh$
|
MCh$
|
|||||
OPERATING INCOME
|
Note 1 e)
|
||||||||
Interest income
|
28
|
3,399,126
|
1,768,735
|
1,412,983
|
1,207,778
|
||||
Interest expense
|
28
|
(1,530,576)
|
(796,435)
|
(473,264)
|
(351,262)
|
||||
Net interest income
|
1,868,550
|
972,300
|
939,719
|
856,516
|
|||||
Fee and commission income
|
29
|
697,686
|
363,041
|
338,183
|
315,925
|
||||
Fee and commission expense
|
29
|
(163,746)
|
(85,205)
|
(74,601)
|
(61,795)
|
||||
Net fee and commission income
|
533,940
|
277,836
|
263,582
|
254,130
|
|||||
Net income from financial operations (net trading income)
|
30
|
328,350
|
170,857
|
38,755
|
3,887
|
||||
Foreign exchange profit (loss), net
|
31
|
(147,324)
|
(76,660)
|
57,233
|
163,241
|
||||
Other operating income
|
36
|
36,032
|
18,749
|
43,608
|
25,866
|
||||
Net operating profit before loan losses
|
2,619,548
|
1,363,082
|
1,342,897
|
1,303,640
|
|||||
Provision for loan losses
|
32
|
(607,547)
|
(316,137)
|
(253,915)
|
(333,145)
|
||||
NET OPERATING PROFIT
|
2,012,001
|
1,046,945
|
1,088,982
|
970,495
|
|||||
Personnel salaries and expenses
|
33
|
(539,277)
|
(280,613)
|
(250,265)
|
(224,484)
|
||||
Administrative expenses
|
34
|
(320,602)
|
(166,825)
|
(147,343)
|
(136,712)
|
||||
Depreciation and amortization
|
35
|
(102,750)
|
(53,466)
|
(49,403)
|
(46,623)
|
||||
Impairment
|
35
|
(223)
|
(116)
|
(4,925)
|
(75)
|
||||
Other operating expenses
|
36
|
(123,394)
|
(64,208)
|
(45,402)
|
(37,364)
|
||||
Total operating expenses
|
(1,086,246)
|
(565,228)
|
(497,338)
|
(445,258)
|
|||||
OPERATING INCOME
|
925,755
|
481,717
|
591,644
|
525,237
|
|||||
Income from investments in other companies
|
13
|
4,113
|
2,140
|
1,171
|
297
|
||||
Income before tax
|
929,868
|
483,857
|
592,815
|
525,534
|
|||||
Income tax expense
|
16
|
(148,348)
|
(77,193)
|
(85,343)
|
(88,924)
|
||||
NET INCOME FOR THE PERIOD
|
781,520
|
406,664
|
507,472
|
436,610
|
|||||
Attributable to:
|
|||||||||
Bank shareholders (Equity holders of the Bank)
|
-
|
772,044
|
401,733
|
505,393
|
431,557
|
||||
Non-controlling interest
|
27
|
9,476
|
4,931
|
2,079
|
5,053
|
||||
Earnings per share attributable to Bank shareholders:
|
|||||||||
(expressed in Chilean pesos and US dollars)
|
|||||||||
Basic earnings
|
25
|
0.004
|
2.132
|
2.682
|
2.290
|
||||
Diluted earnings
|
25
|
0.004
|
2.132
|
2.682
|
2.290
|
2011
|
2011
|
2010
|
2009
|
||||||||
NOTE
|
ThUS$
|
MCh$
|
MCh$
|
MCh$
|
|||||||
Note 1 e)
|
|||||||||||
CONSOLIDATED INCOME FOR THE PERIOD
|
781,520
|
406,664
|
507,472
|
436,610
|
|||||||
OTHER COMPREHENSIVE INCOME
|
|||||||||||
Available for sale investments
|
12
|
41,585
|
21,639
|
10,708
|
(9,285)
|
||||||
Cash flow hedge
|
8
|
(22,224)
|
(11,564)
|
15,120
|
(14,035)
|
||||||
Other comprehensive income before income tax
|
19,361
|
10,075
|
25,828
|
(23,320)
|
|||||||
Income tax related to other comprehensive income
|
16
|
(3,613)
|
(1,880)
|
(4,273)
|
3,964
|
||||||
Total other comprehensive income
|
15,748
|
8,195
|
21,555
|
(19,356)
|
|||||||
CONSOLIDATED COMPREHENSIVE INCOME FOR THE PERIOD
|
797,268
|
414,859
|
529,027
|
417,254
|
|||||||
Attributable to:
|
|||||||||||
Bank shareholders (Equity holders of the Bank)
|
787,440
|
409,745
|
527,017
|
412,305
|
|||||||
Non-controlling interest
|
27
|
9,828
|
5,114
|
2,010
|
4,949
|
RESERVES
|
VALUATION ADJUSTMENTS
|
RETAINED EARNINGS
|
||||||||||
Capital
|
Reserves and other retained earnings
|
Merger of companies under common control
|
Available for sale investments
|
Cash flow hedge
|
Income tax
|
Retained earnings from prior years
|
Income for the period
|
Provision for mandatory dividends
|
Total attributable to Bank shareholders
|
Non-controlling interest
|
Total Equity
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Equity as of December 31, 2008
|
891,303
|
53,763
|
(2,224)
|
(19,972)
|
10,873
|
1,547
|
241,048
|
413,370
|
(97,938)
|
1,491,770
|
25,879
|
1,517,649
|
Distribution of income from previous period
|
-
|
-
|
-
|
-
|
-
|
-
|
413,370
|
(413,370)
|
-
|
-
|
-
|
-
|
Equity as of January 1, 2009
|
891,303
|
53,763
|
(2,224)
|
(19,972)
|
10,873
|
1,547
|
654,418
|
-
|
(97,938)
|
1,491,770
|
25,879
|
1,517,649
|
Increase or decrease of capital and reserves
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5,600
|
5,600
|
Dividend distributions / Withdrawals made
|
-
|
-
|
-
|
-
|
-
|
-
|
(213,295)
|
-
|
97,938
|
(115,357)
|
(5,258)
|
(120,615)
|
Other changes in equity
|
-
|
-
|
-
|
-
|
-
|
-
|
853
|
-
|
-
|
853
|
(1,371)
|
(518)
|
Provisions for mandatory dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(129,467)
|
(129,467)
|
-
|
(129,467)
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
(212,442)
|
-
|
(31,529)
|
(243,971)
|
(1,029)
|
(245,000)
|
Other comprehensive income
|
-
|
-
|
-
|
(9,160)
|
(14,035)
|
3,943
|
-
|
-
|
-
|
(19,252)
|
(104)
|
(19,356)
|
Income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
431,557
|
-
|
431,557
|
5,053
|
436,610
|
Subtotals
|
-
|
-
|
-
|
(9,160)
|
(14,035)
|
3,943
|
-
|
431,557
|
-
|
412,305
|
4,949
|
417,254
|
Equity as of December 31, 2009
|
891,303
|
53,763
|
(2,224)
|
(29,132)
|
(3,162)
|
5,490
|
441,976
|
431,557
|
(129,467)
|
1,660,104
|
29,799
|
1,689,903
|
Distribution of income from previous period
|
-
|
-
|
-
|
-
|
-
|
-
|
431,557
|
(431,557)
|
-
|
-
|
-
|
-
|
Equity as of January 1, 2010
|
891,303
|
53,763
|
(2,224)
|
(29,132)
|
(3,162)
|
5,490
|
873,533
|
-
|
(129,467)
|
1,660,104
|
29,799
|
1,689,903
|
Increase or decrease of capital and reserves
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends distributions / Withdrawals made
|
-
|
-
|
-
|
-
|
-
|
-
|
(258,752)
|
-
|
129,467
|
(129,285)
|
-
|
(129,285)
|
Other changes in equity
|
-
|
-
|
-
|
-
|
-
|
-
|
(50)
|
-
|
-
|
(50)
|
-
|
(50)
|
Provisions for mandatory dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(151,618)
|
(151,618)
|
-
|
(151,618)
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
(258,802)
|
-
|
(22,151)
|
(280,953)
|
-
|
(280,953)
|
Other comprehensive income
|
-
|
-
|
-
|
10,791
|
15,120
|
(4,287)
|
-
|
-
|
-
|
21,624
|
(69)
|
21,555
|
Income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
505,393
|
-
|
505,393
|
2,079
|
507,472
|
Subtotals
|
-
|
-
|
-
|
10,791
|
15,120
|
(4,287)
|
-
|
505,393
|
-
|
527,017
|
2,010
|
529,027
|
Equity as of December 31, 2010
|
891,303
|
53,763
|
(2,224)
|
(18,341)
|
11,958
|
1,203
|
614,731
|
505,393
|
(151,618)
|
1,906,168
|
31,809
|
1,937,977
|
Distribution of income from previous period
|
-
|
-
|
-
|
-
|
-
|
-
|
505,393
|
(505,393)
|
-
|
-
|
-
|
-
|
Opening balances as of January 1, 2011
|
891,303
|
53,763
|
(2,224)
|
(18,341)
|
11,958
|
1,203
|
1,120,124
|
-
|
(151,618)
|
1,906,168
|
31,809
|
1,937,977
|
Increase or decrease of capital and reserves
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends distributions / Withdrawals made
|
-
|
-
|
-
|
-
|
-
|
-
|
(286,294)
|
-
|
151,618
|
(134,676)
|
(3,122)
|
(137,798)
|
Other changes in equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Provision for mandatory dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(120,520)
|
(120,520)
|
-
|
(120,520)
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
(286,294)
|
-
|
31,098
|
(255,196)
|
(3,122)
|
(258,318)
|
Other comprehensive income
|
-
|
-
|
-
|
21,418
|
(11,564)
|
(1,842)
|
-
|
-
|
-
|
8,012
|
183
|
8,195
|
Income for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
401,733
|
-
|
401,733
|
4,931
|
406,664
|
Subtotals
|
-
|
-
|
-
|
21,418
|
(11,564)
|
(1,842)
|
-
|
401,733
|
-
|
409,745
|
5,114
|
414,859
|
Balances as of December 31, 2011
|
891,303
|
53,763
|
(2,224)
|
3,077
|
394
|
(639)
|
833,830
|
401,733
|
(120,520)
|
2,060,717
|
33,801
|
2,094,518
|
Period
|
Total attributable to Bank shareholders
|
Allocated to reserves or retained earnings
|
Allocated to Dividends
|
Percentage
distributed
|
Number of
shares
|
Dividend per share
(in pesos)
|
|||||
MCh$
|
MCh$
|
MCh$
|
%
|
||||||||
Year 2010 (Shareholders Meeting April 2011)
|
505,393
|
219,099
|
286,294
|
56.6478%
|
188,446,126,794
|
1.519
|
|||||
Year 2009 (Shareholders Meeting April 2010)
|
431,557
|
172,805
|
258,752
|
59.9578%
|
188,446,126,794
|
1.373
|
December 31,
|
|||||||||
2011
|
2011
|
2010
|
2009
|
||||||
NOTE
|
ThUS$
|
MCh$
|
MCh$
|
MCh$
|
|||||
A - CASH FLOWS FROM OPERATING ACTIVITIES
|
Note 1 e)
|
||||||||
CONSOLIDATED INCOME BEFORE TAX
|
929,868
|
483,857
|
592,815
|
525,534
|
|||||
Debits (credits) to income that do not represent cash flows
|
(1,697,763)
|
(883,431)
|
(910,920)
|
(749,673)
|
|||||
Depreciation and amortization
|
35
|
102,750
|
53,466
|
49,403
|
46,623
|
||||
Impairment of property, plan and equipment
|
35
|
223
|
116
|
4,925
|
75
|
||||
Provision for loan losses
|
32
|
676,395
|
351,962
|
284,394
|
372,419
|
||||
Mark to market of trading investments
|
-
|
(10,245)
|
(5,331)
|
6,940
|
(29,926)
|
||||
Income from investments in other companies
|
13
|
(4,113)
|
(2,140)
|
(1,171)
|
(297)
|
||||
Net gain on sale of assets received in lieu of payment
|
36
|
(10,818)
|
(5,629)
|
(1,556)
|
(29)
|
||||
Provisions for assets received in lieu of payment
|
36
|
-
|
-
|
-
|
(1,859)
|
||||
Net gain on sale of property, plant and equipment
|
36
|
(22,798)
|
(11,863)
|
(31,225)
|
(7,598)
|
||||
Charge off of assets received in lieu of payment
|
36
|
-
|
-
|
-
|
-
|
||||
Net interest income
|
28
|
(1,868,550)
|
(972,300)
|
(939,719)
|
(856,516)
|
||||
Net fee and commission income
|
29
|
(533,940)
|
(277,836)
|
(263,582)
|
(254,130)
|
||||
Debits (credits) to income that do not represent cash flows
|
-
|
46,470
|
24,181
|
(427)
|
1,591
|
||||
Changes in assets and liabilities due to deferred taxes
|
16
|
(73,137)
|
(38,057)
|
(18,902)
|
(20,026)
|
||||
Increase/decrease in operating assets and liabilities
|
3,759,900
|
1,956,464
|
254,068
|
1,547,726
|
|||||
Decrease (Increase) of loans and accounts receivables from customers, net (**)
|
-
|
(2,880,719)
|
(1,498,982)
|
(1,929,692)
|
651,095
|
||||
Decrease (increase) of financial investments
|
-
|
(417,842)
|
(217,424)
|
778,084
|
71,538
|
||||
Decrease due to repurchase agreements (assets)
|
-
|
303,751
|
158,057
|
156,965
|
(13,678)
|
||||
Decrease (Increase) of interbank loans
|
-
|
(34,340)
|
(17,869)
|
(46,302)
|
72,129
|
||||
Decrease of assets received or awarded in lieu of payment
|
-
|
98,128
|
51,061
|
29,204
|
7,459
|
||||
Increase of debits in checking accounts
|
-
|
410,155
|
213,424
|
553,745
|
506,557
|
||||
Increase (decrease) of time deposits and other time liabilities
|
-
|
3,175,899
|
1,652,579
|
83,500
|
(2,212,375)
|
||||
Increase obligations with domestic banks
|
-
|
-
|
-
|
(26,301)
|
27,400
|
||||
Increase (decrease) of other demand liabilities or time obligations
|
-
|
(69,267)
|
(36,043)
|
149,155
|
116,913
|
||||
Increase (decrease) of obligations with foreign banks
|
-
|
646,899
|
336,614
|
(436,582)
|
597,191
|
||||
Decrease of obligations with Central Bank of Chile
|
-
|
(955)
|
(497)
|
(543)
|
(608)
|
||||
Increase (decrease) due to repurchase agreements (liabilities)
|
-
|
479,785
|
249,656
|
(819,880)
|
554,821
|
||||
Increase (decrease) of other short-term liabilities
|
-
|
19,814
|
10,310
|
4,992
|
(9,512)
|
||||
Net increase of other assets and liabilities
|
-
|
(800,183)
|
(416,375)
|
(510,652)
|
(107,254)
|
||||
Issuance of letters of credit
|
-
|
-
|
-
|
4,506
|
|||||
Redemption of letters of credit
|
-
|
(166,709)
|
(86,747)
|
(94,281)
|
(104,979)
|
||||
Senior bond issuances
|
-
|
1,134,333
|
590,250
|
1,459,072
|
749,400
|
||||
Redemption of senior bonds and payments of interest
|
-
|
(544,960)
|
(283,570)
|
(225,315)
|
(256,500)
|
||||
Issuance of subordinated bonds
|
-
|
214,198
|
111,458
|
116,871
|
6,014
|
||||
Redemption of subordinated bonds and payments of interest
|
-
|
(67,030)
|
(34,879)
|
(35,613)
|
(138,708)
|
||||
Interest received
|
-
|
3,434,473
|
1,787,128
|
1,384,762
|
1,579,452
|
||||
Interest paid
|
-
|
(1,562,650)
|
(813,125)
|
(516,441)
|
(719,174)
|
||||
Dividends received from investments in other companies
|
13
|
1,528
|
795
|
1,081
|
833
|
||||
Fees and commissions received
|
29
|
697,686
|
363,041
|
338,183
|
315,925
|
||||
Fees and commissions paid
|
29
|
(163,746)
|
(85,205)
|
(74,601)
|
(61,795)
|
||||
Income tax paid
|
16
|
(148,348)
|
(77,193)
|
(85,343)
|
(88,924)
|
||||
Net cash flows from (used in) operating activities
|
2,992,005
|
1,556,890
|
(64,037)
|
1,323,587
|
December 31,
|
|||||||||
2011
|
2011
|
2010
|
2009
|
||||||
NOTE
|
ThUS$
|
MCh$
|
MCh$
|
MCh$
|
|||||
B - CASH FLOWS FROM INVESTMENT ACTIVITIES
|
Note 1 e)
|
||||||||
Purchases of property, plant, and equipment
|
15
|
(51,290)
|
(26,689)
|
(19,001)
|
(11,756)
|
||||
Sales of property, plant and equipment
|
15
|
16,614
|
8,645
|
27,317
|
17,410
|
||||
Purchases of investments in other companies
|
13
|
-
|
-
|
(4)
|
(32)
|
||||
Sales of investments in other companies
|
-
|
-
|
-
|
-
|
209
|
||||
Purchases of intangible assets
|
14
|
(65,439)
|
(34,051)
|
(28,331)
|
(33,960)
|
||||
Net cash flows used in investment activities
|
(100,115)
|
(52,095)
|
(20,019)
|
(28,129)
|
|||||
C - CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||||||
From shareholders’ financing activities
|
-
|
(550,195)
|
(286,294)
|
(258,752)
|
(172,407)
|
||||
Increase of other obligations
|
-
|
-
|
-
|
-
|
40,888
|
||||
Dividends paid
|
-
|
(550,195)
|
(286,294)
|
(258,752)
|
(213,295)
|
||||
From non-controlling interest financing activities
|
-
|
(6,000)
|
(3,122)
|
(4)
|
342
|
||||
Increases of capital
|
-
|
-
|
-
|
-
|
5,600
|
||||
Dividends and/or withdrawals paid
|
25
|
(6,000)
|
(3,122)
|
(4)
|
(5,258)
|
||||
Net cash flows used in financing activities
|
(556,195)
|
(289,416)
|
(258,756)
|
(172,065)
|
|||||
D – NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS DURING THE PERIOD
|
-
|
2,335,695
|
1,215,379
|
(342,812)
|
1,123,393
|
||||
E – EFFECTS OF FOREIGN EXCHANGE RATE FLUCTUATION
|
-
|
(136,737)
|
(71,151)
|
(56,865)
|
64,461
|
||||
F - INITIAL BALANCE OF CASH AND CASH EQUIVALENTS
|
-
|
3,529,242
|
1,836,441
|
2,236,118
|
1,048,264
|
||||
FINAL BALANCE OF CASH AND CASH EQUIVALENTS
|
5
|
5,728,200
|
2,980,669
|
1,836,441
|
2,236,118
|
As of December 31,
|
||||||||
Reconciliation of provisions for Consolidated Statements of Cash Flow
|
2011
|
2011
|
2010
|
2009
|
||||
ThUS$
|
MCh$
|
MCh$
|
MCh$
|
|||||
Provisions for loan losses for cash flow
|
676,395
|
351,962
|
284,394
|
372,419
|
||||
Recovery of loans previously charged off (see Note 32)
|
(68,848)
|
(35,825)
|
(30,479)
|
(39,274)
|
||||
Provisions for loan losses for Statements of Income
|
607,547
|
316,137
|
253,915
|
333,145
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Basis of preparation
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Basis of preparation for the Consolidated Financial Statements
|
Percentage Share | |||||||||||
As of December 31, | |||||||||||
Subsidiaries | 2011 | 2010 | 2009 | ||||||||
Direct
%
|
Indirect
%
|
Total
%
|
Direct
%
|
Indirect
%
|
Total
%
|
Direct
%
|
Indirect
%
|
Total
%
|
|||
Santander Corredora de Seguros Limitada
|
99.75
|
0.01
|
99.76
|
99.75
|
0.01
|
99.76
|
99.75
|
0.01
|
99.76
|
||
Santander S.A. Corredores de Bolsa
|
50.59
|
0.41
|
51.00
|
50.59
|
0.41
|
51.00
|
50.59
|
0.41
|
51.00
|
||
Santander Asset Management S.A. Administradora General de Fondos
|
99.96
|
0.02
|
99.98
|
99.96
|
0.02
|
99.98
|
99.96
|
0.02
|
99.98
|
||
Santander Agente de Valores Limitada
|
99.03
|
-
|
99.03
|
99.03
|
-
|
99.03
|
99.03
|
-
|
99.03
|
||
Santander S.A. Sociedad Securitizadora
|
99.64
|
-
|
99.64
|
99.64
|
-
|
99.64
|
99.64
|
-
|
99.64
|
||
Santander Servicios de Recaudación y Pagos Limitada
|
99.90
|
0.10
|
100.00
|
99.90
|
0.10
|
100.00
|
99.90
|
0.10
|
100.00
|
-
|
The SPEs’ activities have essentially been conducted on behalf of the company that presents the consolidated financial statements and in response to its specific business needs.
|
-
|
The necessary decision making authority is held to obtain most of the benefits from these entities’ activities, as well as the rights to obtain most of the benefits or other advantages from such entities.
|
-
|
The entity essentially retains most of the risks inherent to the ownership or residual interest of the SPEs or its assets, for the purpose of obtaining the benefits from its activities.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
|
-
|
Santander Gestión de Recaudación y Cobranza Limitada (collection services).
|
|
-
|
Multinegocios S.A. (management of sales force).
|
|
-
|
Servicios Administrativos y Financieros Limitada (management of sales force).
|
|
-
|
Fiscalex Limitada (collection services).
|
|
-
|
Multiservicios de Negocios Limitada (call center).
|
|
-
|
Bansa Santander S.A. (management of repossessed assets and leasing of properties).
|
Percent ownership share | |||
Associates | As of December 31, | ||
% | % | % | |
2011 | 2010 | 2009 | |
Redbank S.A.
|
33.43
|
33.43
|
33.43
|
Transbank S.A.
|
32.71
|
32.71
|
32.71
|
Centro de Compensación Automatizado
|
33.33
|
33.33
|
33.33
|
Sociedad Interbancaria de Depósito de Valores S.A.
|
29.28
|
29.28
|
29.28
|
Cámara Compensación de Alto Valor S.A.
|
12.65
|
12.65
|
11.52
|
Administrador Financiero del Transantiago S.A.
|
20.00
|
20.00
|
20.00
|
Nexus S.A.
|
12.90
|
12.90
|
12.90
|
c)
|
Non-controlling interest
|
d)
|
Operating segments
|
i.
|
has been identified;
|
ii.
|
exceeds the quantitative thresholds required for a segment.
|
i.
|
the nature of the products and services;
|
ii.
|
the nature of the production processes;
|
iii.
|
the type or class of customers that use their products and services;
|
iv.
|
the methods used to distribute their products or services; and
|
v.
|
if applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
i.
|
Its reported revenue, from both external customers and intersegment sales or transfers, is 10% or more of the combined internal and external revenue of all operating segments.
|
ii.
|
The absolute amount of its reported profit or loss is 10% or more of the greater in absolute amount of: (i) the combined reported profit of all the operating segments that did not report a loss and; (ii) the combined reported loss of all operating segments that reported a loss.
|
iii.
|
Its assets represent 10% or more of the combined assets of all operating segments.
|
i.
|
that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses from transactions with other components of the same entity);
|
ii.
|
whose operating results are regularly reviewed by the entity’s chief executive officer to make decisions about resources allocated to the segment and assess its performance; and
|
iii.
|
For which discrete financial information is available.
|
e)
|
Functional and presentation currency
|
f)
|
Foreign currency transactions
|
g)
|
Definitions and classification of financial instruments
|
i.
|
Definitions
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
ii.
|
Classification of financial assets for measurement purposes
|
-
|
Portfolio of trading investments (at fair value through profit and loss): this category includes the financial assets acquired for the purpose of generating profits in the short term from fluctuations in their prices. This category includes the portfolio of trading investments and financial derivative contracts not designated as hedging instruments.
|
-
|
Available for sale investment portfolio: debt instruments not classified as a) “held-to-maturity investments,” b) “Credit investments (loans and accounts receivable from customers or interbank loans)” or c) “Financial assets at fair value through profit or loss.” Available for sale (AFS) investments are initially recorded at cost, which includes transaction costs. AFS instruments are subsequently measured at fair value, or based on appraisals made with the use of internal models when appropriate. Unrealized gains or losses stemming from changes in fair value are recorded as a debit or credit to Other Comprehensive Income under the heading “Valuation Adjustments” within equity. When these investments are disposed of or become impaired, the cumulative gains or losses previously recognized in Other Comprehensive Income are transferred to the Consolidated Statement of Income under “Net income from financial operations.”
|
-
|
Held to maturity instruments portfolio: this category includes debt securities traded on an active market, with a fixed maturity, and with fixed or determinable payments, for which the Bank has both the intent and a proven ability to hold to maturity. Held to maturity investments are recorded at their amortized cost plus interest earned less any impairment losses established when their carrying amount exceeds the present value of estimated future cash flows.
|
-
|
Credit investments (loans and accounts receivable from customers or interbank loans): this category includes financing granted to third parties, based on their nature, regardless of the class of borrower and the form of financing. Includes loans and accounts receivable from customers, interbank loans, and financial lease transactions in which the Bank acts as lessor.
|
iii.
|
Classification of financial assets for presentation purposes
|
-
|
Cash and deposits in banks: This line includes cash balances, checking accounts and on-demand deposits with the Central Bank of Chile and other domestic and foreign financial institutions.
|
-
|
Cash items in process of collection: This item includes the values of executed transactions which contractually defer the payment of purchase-sale transactions or the delivery of the foreign currency acquired.
|
-
|
Trading investments: This item includes financial instruments held-for-trading and investments in mutual funds which must be adjusted to their fair value in the same way as instruments acquired for trading.
|
-
|
Investment under resale agreements: This item includes the balances of purchase of financial instruments under resale agreements.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Financial derivative contracts: Financial derivative contracts with positive fair values are presented in this item. It includes both independent contracts as well as derivatives that should and can be separated from a host contract, whether they are for trading or hedging, as shown in Note 8 to the Consolidated Financial Statements.
|
-
|
Trading derivatives: Includes the fair value of derivatives which do not qualify for hedge accounting, including embedded derivatives separated from hybrid financial instruments.
|
-
|
Hedging derivatives: Includes the fair value of derivatives designated as hedging instruments in hedge accounting, including the embedded derivatives separated from the hybrid financial instruments designated as hedging instruments in hedge accounting.
|
-
|
Interbank loans: This item includes the balances of transactions with domestic and foreign banks, including the Central Bank of Chile, other than those reflected in the preceding items.
|
-
|
Loans and accounts receivables from customers: These loans are non-derivative financial assets for which fixed or determined amounts are charged, that are not listed on an active market and which the Bank does not intend to sell immediately or in the short term. When the Bank is the lessor in a lease, and it substantially transfers the risks and benefits incidental to the leased asset, the transaction is presented in loans and accounts receivable from customers.
|
-
|
Investment instruments: These are classified into two categories; held-to-maturity investments, and available-for-sale investments. The held-to-maturity investment category includes only those instruments for which the Bank has the ability and intent to hold them until their maturity. The remaining investments are treated as available for sale.
|
iv.
|
Classification of financial liabilities for measurement purposes
|
-
|
Financial liabilities held for trading (at fair value through profit or loss): financial liabilities issued to generate short-term profits from fluctuations in their prices, financial derivatives not deemed to qualify for hedge accounting and financial liabilities arising from firm commitment of financial assets purchased under repurchase agreements or borrowed (“short positions”).
|
-
|
Financial liabilities at amortized cost: financial liabilities, regardless of their class and maturity, not included in any of the aforementioned categories which arise from the borrowing activities of financial institutions.
|
v.
|
Classification of financial liabilities for presentation purposes
|
-
|
Deposits and other demand liabilities: This item includes all on-demand obligations except for term savings accounts, which are not considered on-demand instruments in view of their special characteristics. Obligations whose payment may be required during the period are deemed to be on-demand obligations. Operations which become callable the day after the closing date are not treated as on-demand obligations.
|
-
|
Cash items in process of being cleared: This item includes the balances of asset purchases that are not settled on the same day and for sales of foreign currencies not delivered.
|
-
|
Obligations under repurchase agreements: This item includes the balances of sales of financial instruments under repurchase and loan agreements.
|
-
|
Time deposits and other demand liabilities: This item shows the balances of deposit transactions in which a term at the end of which they become callable has been stipulated.
|
-
|
Financial derivative contracts: This item includes financial derivative contracts with negative fair values (i.e. against the Bank), whether they are for trading or hedge accounting, as set forth in Note 8.
|
-
|
Trading derivatives: Includes the fair value of derivatives which do not qualify for hedge accounting, including embedded derivatives separated from hybrid financial instruments.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Hedging derivatives: Includes the fair value of the derivatives designated as hedging instruments, including embedded derivatives separated from hybrid financial instruments and designated as hedging instruments.
|
-
|
Interbank borrowings: This item includes obligations due to other domestic banks, foreign banks, or the Central Bank of Chile, which were not classified in any of the previous categories.
|
-
|
Debt instruments issued: This encompasses three items; Obligations under letters of credit, Subordinated bonds and Senior bonds placed in the local and foreign market.
|
-
|
Other financial liabilities: This item includes credit obligations to persons other than domestic banks, foreign banks, or the Central Bank of Chile, for financing purposes or operations in the normal course of business.
|
h)
|
Valuation of financial assets and liabilities and recognition of fair value changes
|
i.
|
Valuation of financial assets
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
ii.
|
Valuation of financial liabilities
|
iii.
|
Valuation techniques
|
i.
|
In the valuation of financial instruments permitting static hedging (mainly “forwards” and “swaps”), the “present value” method is used. Estimated future cash flows are discounted using the interest rate curves of the related currencies. The interest rate curves are generally observable market data.
|
ii.
|
In the valuation of financial instruments requiring dynamic hedging (mainly structured options and other structured instruments), the Black-Scholes model is normally used. Where appropriate, observable market inputs are used to obtain factors such as the bid-offer spread, exchange rates, volatility, correlation indexes and market liquidity.
|
iii.
|
In the valuation of certain financial instruments exposed to interest rate risk, such as interest rate futures, caps and floors, the present value method (futures) and the Black-Scholes model (plain vanilla options) are used. The main inputs used in these models are observable market data, including the related interest rate curves, volatilities, correlations and exchange rates.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
iv.
|
Recording results
|
-
|
“Available-for-sale instruments” are recorded in Other Comprehensive Income and accumulated under the heading “Valuation adjustments” within Equity.
|
-
|
When the AFS instruments are disposed of or are determined to be impaired, the cumulative gain or loss previously accumulated as “Valuation Adjustments” is reclassified to the Consolidated Statement of Income.
|
v.
|
Hedging transactions
|
i)
|
to sell to customers who request these instruments in the management of their market and credit risks,
|
ii)
|
to use these derivatives in the management of the risks of the Bank entities’ own positions and assets and liabilities (“hedging derivatives”), and
|
iii)
|
to obtain profits from changes in the price of these derivatives (“trading derivatives”).
|
1.
|
The derivative hedges one of the following three types of exposure:
|
|
a.
|
Changes in the value of assets and liabilities due to fluctuations, among others, in the interest rate and/or exchange rate to which the position or balance to be hedged is subject (“fair value hedge”);
|
|
b.
|
Changes in the estimated cash flows arising from financial assets and liabilities, commitments and highly probable forecasted transactions (“cash flow hedge”);
|
|
c.
|
The net investment in a foreign operation (“hedge of a net investment in a foreign operation”).
|
2.
|
It is effective in offsetting exposure inherent in the hedged item or position throughout the expected term of the hedge, which means that:
|
|
a.
|
At the date of arrangement the hedge is expected, under normal conditions, to be highly effective (“prospective effectiveness”).
|
|
b.
|
There is sufficient evidence that the hedge was actually effective during the life of the hedged item or position (“retrospective effectiveness”).
|
3.
|
There must be adequate documentation evidencing the specific designation of the financial derivative to hedge certain balances or transactions and how this effective hedge was expected to be achieved and measured, provided that this is consistent with the Bank’s management of own risks.
|
a.
|
In fair value hedges, the gains or losses arising on both hedging instruments and the hedged items (attributable to the type of risk being hedged) are recorded directly in the Consolidated Statement of Income.
|
b.
|
In fair value hedges of interest rate risk on a portfolio of financial instruments, gains or losses that arise in measuring hedging instruments are recorded directly in the Consolidated Statement of Income, whereas gains or losses due to changes in fair value of the hedged amount (attributable to the hedged risk) are recorded in the Consolidated Statement of Income with an offset to “Net income from financial operations”.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c.
|
In cash flow hedges, the effective portion of the change in value of the hedging instrument is recorded in Other Comprehensive Income under the heading “Cash flow hedge” within equity component “Valuation adjustments”, until the forecasted transaction occurs, thereafter being recorded in the Consolidated Statement of Income, unless the forecasted transaction results in the recognition of non–financial assets or liabilities, in which case it is included in the cost of the non-financial asset or liability.
|
d.
|
The differences in valuation of the hedging instrument corresponding to the ineffective portion of the cash flow hedging transactions are recorded directly in the Consolidated Statement of Income under “Net income from financial operations.”
|
vi.
|
Derivatives embedded in hybrid financial instruments
|
vii.
|
Offsetting of financial instruments
|
viii.
|
Derecognition of financial assets and liabilities
|
i.
|
If the Bank transfers substantially all the risks and rewards of ownership to third parties, as in the case of unconditional sales of financial assets, sales under repurchase agreements at fair value at the date of repurchase, sales of financial assets with a purchased call option or written put option deeply out of the money, utilization of assets in which the transferor does not retain subordinated debt nor grants any credit enhancement to the new holders, and other similar cases, the transferred financial asset is removed from the Consolidated Statements of Financial Position and any rights or obligations retained or created in the transfer are simultaneously recorded.
|
ii.
|
If the Bank retains substantially all the risks and rewards of ownership associated with the transferred financial asset, as in the case of sales of financial assets under repurchase agreements at a fixed price or at the sale price plus interest, securities lending agreements under which the borrower undertakes to return the same or similar assets, and other similar cases, the transferred financial asset is not derecognized from the Consolidated Statements of Financial Position and continues to be measured by the same criteria as those used before the transfer. However, the following items are recorded:
|
|
1.
|
An associated financial liability for an amount equal to the consideration received. This liability is subsequently measured at amortized cost.
|
|
2.
|
Both the income from the transferred (but not removed) financial asset, as well as any expenses incurred on the new financial liability.
|
iii.
|
If the Bank neither transfers nor substantially retains all the risks and rewards of ownership associated with the transferred financial asset—as in the case of sales of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitization of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases—the following distinction is made:
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
|
1.
|
If the transferor does not retain control of the transferred financial asset: the asset is removed from the Consolidated Statements of Financial Position and any rights or obligations retained or created in the transfer are recorded.
|
|
2.
|
If the transferor retains control of the transferred financial asset: it continues to be recorded in the Consolidated Statements of Financial Position for an amount equal to its exposure to changes in value and a financial liability associated with the transferred financial asset is recorded. The net carrying amount of the transferred asset and the associated liability is the amortized cost of the rights and obligations retained, if the transferred asset is measured at amortized cost, or the fair value of the rights and obligations retained, if the transferred asset is measured at fair value.
|
i)
|
Recognizing income and expenses
|
i.
|
Interest revenue, interest expense and similar items
|
ii.
|
Commissions, fees, and similar items
|
-
|
Fee and commission income and expenses relating to financial assets and liabilities measured at fair value through profit or loss are recognized when paid.
|
-
|
Those arising from transactions or services that are performed over a period of time are recognized over the life of these transactions or services.
|
-
|
Those relating to services provided in a single act are recognized when the single act is performed.
|
iii.
|
Non-finance income and expenses
|
iv.
|
Loan arrangement fees
|
j)
|
Impairment
|
i.
|
Financial assets
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
ii.
|
Non-financial assets
|
k)
|
Property, plant and equipment
|
i.
|
Property, plant and equipment for own use
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
ITEM
|
Useful Life
(Months)
|
|
Land
|
-
|
|
Paintings and works of art
|
-
|
|
Assets retired for disposal
|
-
|
|
Carpets and curtains
|
36
|
|
Computers and hardware
|
36
|
|
Vehicles
|
36
|
|
Computational systems and software
|
36
|
|
ATM’s
|
60
|
|
Machines and equipment in general
|
60
|
|
Office furniture
|
60
|
|
Telephone and communication systems
|
60
|
|
Security systems
|
60
|
|
Rights over telephone lines
|
60
|
|
Air conditioning systems
|
84
|
|
Installations in general
|
120
|
|
Security systems (acquisitions up to October 2002)
|
120
|
|
Buildings
|
1,200
|
ii.
|
Assets leased out under operating leases
|
l)
|
Leasing
|
i.
|
Finance leases
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
ii.
|
Operating leases
|
iii.
|
Sale and leaseback transactions
|
m)
|
Factored receivables
|
n)
|
Intangible assets
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
o)
|
Cash and cash equivalents
|
i.
|
Cash flows: Inflows and outflows of cash and cash equivalents, such as deposits with the Central Bank of Chile, deposits in domestic banks, and deposits in foreign banks
|
ii.
|
Operating activities: Principal revenue-producing activities performed by banks and other activities that cannot be classified as investing or financing activities.
|
iii.
|
Investing activities: The acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents.
|
iv.
|
Financing activities: Activities that result in changes in the size and composition of the equity and liabilities that are not operating activities.
|
p)
|
Allowances for loan losses
|
i.
|
Consumer loans,
|
ii.
|
Mortgage loans, and
|
iii.
|
Commercial loans.
|
i.
|
Classifications A1, A2 and A3, correspond to borrowers with no apparent credit risk.
|
ii.
|
Classification B corresponds to borrowers with some credit risk but no apparent deterioration of payment capacity.
|
iii.
|
Classifications C1, C2, C3, C4, D1 and D2 correspond to borrowers whose loans have deteriorated.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
New clients, not renegotiated
|
-
|
Old clients, not renegotiated
|
-
|
New clients, renegotiated
|
-
|
Old clients, renegotiated
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Type of loan
|
|
Term
|
|
|
|
Consumer loans with or without real guarantees
|
|
6 months
|
Other transactions without real guarantees
|
24 months
|
|
Consumer loans with real guarantees
|
|
36 months
|
Mortgage loans
|
|
48 months
|
Consumer leasing
|
|
6 months
|
Other non mortgage leasing transactions
|
|
12 months
|
Mortgage leasing (household and business)
|
|
36 months
|
q)
|
Provisions, contingent assets, and contingent liabilities
|
i.
|
Has a present obligation (legal or constructive) as a result of past events, and
|
ii.
|
It is probable that an outflow of resources will be required to settle these obligations and the amount of these resources can be reliably measured.
|
i.
|
Guarantees and bonds: Encompasses guarantees, bonds, standby letters of credit, and guarantees of payment from buyers in factored receivables.
|
ii.
|
Confirmed foreign letters of credit: Encompasses letters of credit confirmed by the Bank.
|
iii.
|
Documentary letters of credit: Includes documentary letters of credit issued by the Bank, which have not yet been negotiated.
|
iv.
|
Documented guarantees: Guarantees with promissory notes.
|
v.
|
Interbank guarantee: Guarantees issued.
|
vi.
|
Unrestricted credit lines: The unused amount of credit lines that allow customers to draw without prior approval by the Bank (for example, using credit cards or overdrafts in checking accounts).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
vii.
|
Other credit commitments: Amounts not yet lent under committed loans, which must be disbursed at an agreed future date when events contractually agreed upon with the customer occur, such as in the case of lines of credit linked to the progress of a construction or similar projects.
|
viii.
|
Other contingent credits: Includes any other kind of commitment by the Bank which may exist and give rise to lending when certain future events occur. In general, this includes unusual transactions such as pledges made to secure the payment of loans among third parties or derivative contracts made by third parties that may result in a payment obligation and are not covered by deposits.
|
-
|
Provision for employee salaries and expenses
|
-
|
Provision for mandatory dividends
|
-
|
Allowance for contingent credit risks
|
-
|
Provisions for contingencies
|
r)
|
Deferred income taxes and other deferred taxes
|
s)
|
Use of estimates
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Impairment losses of certain assets (Notes 8, 9, 10, and 35)
|
-
|
The useful lives of tangible and intangible assets (Notes 14, 15, and 35)
|
-
|
The fair value of assets and liabilities (Notes 6, 7,8, 12, and 39)
|
-
|
Commitments and contingencies (Note 24)
|
-
|
Current and deferred taxes (Note 16)
|
t)
|
Non-current assets held for sale
|
u)
|
Earnings per share
|
v)
|
Temporary acquisition (assignment) of assets
|
w)
|
Assets under management and investment funds managed by the Bank
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
x)
|
Provision for mandatory dividends
|
i.
|
Post-employment benefits – Defined benefit plans
|
a.
|
Aimed at the Group’s management
|
b.
|
The general requisite to apply is that the employee must be carrying out his duties when turning 60 years old.
|
c.
|
The Bank will take on insurance (pension fund) on the employee’s behalf, for which it will pay regularly the respective premium (contribution).
|
d.
|
The Bank will be directly responsible for granting benefits.
|
-
|
They are not owned by the consolidated entities, but by a legally separate third party not related to the Bank.
|
-
|
They are available only to pay or fund post-employment benefits and cannot be returned to the consolidated entities except when the assets remaining in the plan are sufficient to meet all the obligations of the plan and of the entity in relation to the benefits due to current or former employees or to reimburse employee benefits already paid by the Bank.
|
-
|
Current service cost, defined as the increase in the present value of the obligations arising as a consequence of the services provided by the employees during the period under the “Personnel salaries and expenses” item.
|
-
|
Interest cost, defined as the increase in the present value of the obligations as a consequence of the passage of time which occurs during the period. When the obligations are shown in liabilities in the Consolidated Statements of Financial Position net of the plan assets, the cost of the liabilities recognized in the Consolidated Statement of Income under “Personnel salaries and expenses” reflects exclusively the obligations recorded as liabilities.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
The expected return on the plan assets and the gains and losses on their value, less any cost arising from their management and the taxes to which they are subject.
|
-
|
The actuarial gains and losses calculated using the corridor approach and the unrecognized past service cost, are recorded under “Personnel salaries and expenses” in the Consolidated Statement of Income.
|
ii.
|
Severance Provision
|
iii.
|
Share-based compensation
|
z)
|
Application of new and revised International Financial Reporting Standards (IFRS)
|
a)
|
New and revised IFRS effective in the current year
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
New and revised IFRS issued but not yet effective
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Recognition – the elimination of the option to defer the recognition of gains and losses resulting from defined benefit plans (corridor approach)
|
-
|
Presentation – the elimination of options for the presentation of gains and losses relating to those plans
|
-
|
Disclosure – the improvement of disclosure requirements that will better show the characteristics of defined plans and the risks arising from those plans.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
•
|
IFRS 9 requires all recognized financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortized cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods.
|
•
|
The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the accounting for changes in the fair value of a financial liability (designated as at fair value through profit or loss) attributable to changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. Previously, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value through profit or loss was presented in profit or loss.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
The Board
|
b)
|
Issuance of Bonds during 2011
|
Series
|
Amount
|
Term
|
Interest Rate
|
Date of
Issuance
|
Maturity date
|
Floating rate bond
|
USD 500,000,000
|
5 years
|
Libor (3 months) + 160 bp
|
01/19/2011
|
01/19/2016
|
Floating rate bond
|
USD 135,000,000
|
6 months
|
Libor (3 months) + 80 bp
|
11/29/2011
|
05/29/2012
|
Total
|
USD 635,000,000
|
||||
E1
|
UF 4,000,000
|
5 years
|
3.00% per annum simple
|
02/01/2011
|
02/01/2016
|
E2
|
UF 4,000,000
|
7.5 years
|
3.50 % per annum simple
|
02/01/2011
|
07/01/2018
|
E3
|
UF 4,000,000
|
8.5 years
|
3.50 % per annum simple
|
02/01/2011
|
07/01/2019
|
Total
|
UF 12,000,000
|
||||
E4
|
CLP 50,000,000,000
|
5 years
|
6.75 % per annum simple
|
07/01/2011
|
06/01/2016
|
Total
|
CLP 50,000,000,000
|
Series
|
Amount
|
Term
|
Interest Rate
|
Date of
Issuance
|
Maturity date
|
G3
|
UF 3,000,000
|
25 years
|
3.90 % annual due
|
07/01/2010
|
07/01/2035
|
G5
|
UF 4,000,000 (i)
|
20 years
|
3.90 % annual due
|
05/01/2011
|
04/01/2031
|
Total
|
UF 7,000,000
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Building sale
|
d)
|
Sales of loans previously charged off
|
Nominal portfolio sale
|
||||||||
Commercial
|
Consumer
|
Nominal portfolio sale Total
|
Selling price
|
|||||
Date of agreement
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||
01/20/2011
|
888
|
8,222
|
9,110
|
592
|
||||
02/23/2011
|
774
|
6,802
|
7,576
|
492
|
||||
03/23/2011
|
969
|
6,958
|
7,797
|
507
|
||||
04/26/2011
|
768
|
6,386
|
7,154
|
465
|
||||
05/25/2011
|
990
|
6,611
|
7,601
|
494
|
||||
06/22/2011
|
805
|
7,676
|
8,481
|
551
|
||||
07/26/2011
|
930
|
9,207
|
10,137
|
659
|
||||
08/24/2011
|
2,351
|
10,221
|
12,572
|
817
|
||||
09/22/2011
|
664
|
14,745
|
15,409
|
1,002
|
||||
10/27/2011
|
716
|
12,702
|
13,418
|
872
|
||||
11/22/2011
|
476
|
10,898
|
11,374
|
739
|
||||
12/26/2011
|
762
|
14,462
|
15,224
|
990
|
||||
Total
|
11,093
|
114,890
|
125,853
|
8,180
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a.
|
Santander Banefe
|
b.
|
Commercial banking
|
a.
|
Companies
|
b.
|
Real estate
|
c.
|
Large corporations
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a.
|
Corporate
|
b.
|
Treasury
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2010
|
||||||
Loans and accounts receivable from customers, net (1)
|
Net interest income
|
Provision
for loan losses
|
||||
Former
|
New
|
Former
|
New
|
Former
|
New
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Segments
|
||||||
Individuals
|
8,407,416
|
8,378,969
|
524,920
|
533,500
|
(154,362)
|
(114,562)
|
Santander Banefe
|
717,699
|
714,899
|
115,252
|
106,942
|
(44,849)
|
(27,919)
|
Commercial Banking
|
7,689,717
|
7,664,070
|
409,668
|
426,558
|
(109,513)
|
(86,643)
|
Small and mid-sized companies (PYMEs)
|
2,375,192
|
2,373,360
|
175,538
|
192,825
|
(70,850)
|
(75,742)
|
Institutional
|
331,153
|
332,150
|
28,609
|
19,675
|
(482)
|
(1,229)
|
Companies
|
3,288,107
|
3,286,920
|
114,460
|
126,936
|
(24,532)
|
(45,769)
|
Companies
|
1,353,686
|
1,353,400
|
50,449
|
57,077
|
(18,922)
|
(18,922)
|
Large Corporations
|
1,411,236
|
1,410,578
|
38,755
|
52,678
|
(8,498)
|
(27,983)
|
Real estate
|
523,185
|
522,942
|
25,256
|
17,181
|
2,888
|
1,136
|
Commercial Banking
|
14,401,868
|
14,371,399
|
843,527
|
872,936
|
(250,226)
|
(237,302)
|
Global Banking and Markets
|
1,293,305
|
1,293,221
|
81,203
|
60,164
|
(2,570)
|
(15,495)
|
Corporate
|
1,293,305
|
1,293,221
|
90,825
|
69,786
|
(2,570)
|
(15,495)
|
Treasury
|
-
|
-
|
(9,622)
|
(9,622)
|
-
|
-
|
Other
|
32,109
|
62,662
|
14,989
|
6,619
|
(1,119)
|
(1,118)
|
Total
|
15,727,282
|
15,727,282
|
939,719
|
939,719
|
(253,915)
|
(253,915)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2009
|
||||||
Loans and accounts receivable from customers, net (1)
|
Net interest income
|
Provision
for loan losses
|
||||
Former
|
New
|
Former
|
New
|
Former
|
New
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Segments
|
||||||
Individuals
|
7,287,925
|
7,287,925
|
532,060
|
532,060
|
(229,801)
|
(229,733)
|
Santander Banefe
|
609,808
|
609,808
|
115,840
|
115,840
|
(82,588)
|
(82,564)
|
Commercial Banking
|
6,678,117
|
6,678,117
|
416,220
|
416,220
|
(147,213)
|
(147,169)
|
Small and mid-sized companies (PYMEs)
|
2,485,505
|
2,485,505
|
228,928
|
228,928
|
(76,075)
|
(76,143)
|
Institutional
|
282,933
|
282,933
|
18,789
|
18,789
|
(327)
|
(327)
|
Companies
|
2,471,162
|
2,456,321
|
114,432
|
114,932
|
(24,333)
|
(24,626)
|
Companies
|
1,051,875
|
1,051,875
|
53,407
|
53,407
|
(8,618)
|
(8,618)
|
Large Corporations
|
436,349
|
968,097
|
43,233
|
43,733
|
(17,756)
|
(18,049)
|
Real estate
|
982,938
|
436,349
|
17,792
|
17,792
|
2,041
|
2,041
|
Commercial Banking
|
12,527,525
|
12,512,684
|
894,209
|
894,709
|
(330,536)
|
(330,829)
|
Global Banking and Markets
|
1,194,706
|
1,209,547
|
33,738
|
33,238
|
(2,511)
|
(2,218)
|
Corporate
|
1,194,706
|
1,209,547
|
54,728
|
54,228
|
(2,511)
|
(2,218)
|
Treasury
|
-
|
-
|
(20,990)
|
(20,990)
|
-
|
-
|
Other
|
29,045
|
29,045
|
(71,431)
|
(71,431)
|
(98)
|
(98)
|
Total
|
13,751,276
|
13,751,276
|
856,516
|
856,516
|
(333,145)
|
(333,145)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
|||||||
Loans and accounts receivable from customers, net
(1)
|
Net interest income
|
Net fee and commission income
|
ROF
(2)
|
Provision
for loan losses
|
Support expenses
(3)
|
Segment’s net contribution
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Segments
|
|||||||
Individuals
|
9,289,345
|
570,293
|
187,176
|
9,095
|
(248,137)
|
(322,273)
|
196,154
|
Santander Banefe
|
804,852
|
117,154
|
37,206
|
275
|
(62,252)
|
(70,719)
|
21,664
|
Commercial Banking
|
8,484,493
|
453,139
|
149,970
|
8,820
|
(185,885)
|
(251,554)
|
174,490
|
Small and mid-sized companies (PYMEs)
|
2,560,736
|
207,008
|
38,274
|
9,577
|
(65,028)
|
(74,962)
|
114,869
|
Institutional
|
355,199
|
26,856
|
1,831
|
859
|
503
|
(11,329)
|
18,720
|
Companies
|
3,650,709
|
140,818
|
24,310
|
13,427
|
(11,592)
|
(40,680)
|
126,283
|
Companies
|
1,583,895
|
65,499
|
12,785
|
7,134
|
(10,080)
|
(22,698)
|
52,640
|
Large Corporations
|
1,470,447
|
56,467
|
8,594
|
5,669
|
(1,212)
|
(13,496)
|
56,022
|
Real estate
|
596,367
|
18,852
|
2,931
|
624
|
(300)
|
(4,486)
|
17,621
|
Commercial Banking
|
15,855,989
|
944,975
|
251,591
|
32,958
|
(324,254)
|
(449,244)
|
456,026
|
Global Banking and Markets
|
1,494,752
|
48,942
|
31,908
|
68,530
|
7,614
|
(35,302)
|
121,692
|
Corporate
|
1,479,838
|
64,845
|
30,745
|
1,368
|
7,614
|
(13,790)
|
90,782
|
Treasury
|
14,914
|
(15,903)
|
1,163
|
67,162
|
-
|
(21,512)
|
30,910
|
Other
|
84,041
|
(21,617)
|
(5,663)
|
(7,291)
|
503
|
(16,474)
|
(50,542)
|
Total
|
17,434,782
|
972,300
|
277,836
|
94,197
|
(316,137)
|
(501,020)
|
527,176
|
Other operating income
|
18,749
|
Other operating expenses
|
(64,208)
|
Income from investments in other companies
|
2,140
|
Income tax
|
(77,193)
|
Consolidated income for the period
|
406,664
|
1)
|
Corresponds to Loans and accounts receivable from customers, net (Ch$ 16,858,637 million) plus interbank loans, net (Ch$87,677 million), before deduction of their allowances for loan losses (Ch$488,457 million and Ch$11 million, respectively), which were restituted for presentation purposes in this table.
|
(2)
|
Results from financial operations. Correspond to the sum of Net income from financial operations (Ch$170,857 million) and foreign exchange profit (loss), net (Ch$76,660 million).
|
(3)
|
Corresponds to the sum of Personnel salaries and expenses (Ch$280,613 million), administrative expenses (Ch$166,825 million), depreciation and amortization (Ch$53,466 million) and impairment (Ch$116 million).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2010
|
|||||||
Loans and accounts receivables from customers, net (1)
|
Net interest income
|
Net fee and commission income
|
ROF
(2)
|
Provision
for loan losses
|
Support expenses
(3)
|
Segment’s net contribution
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Segments
|
|||||||
Individuals
|
8,378,969
|
533,500
|
191,841
|
5,027
|
(114,562)
|
(291,208)
|
324,598
|
Santander Banefe
|
714,899
|
106,942
|
32,133
|
15
|
(27,919)
|
(66,272)
|
44,899
|
Commercial Banking
|
7,664,070
|
426,558
|
159,708
|
5,012
|
(86,643)
|
(224,936)
|
279,699
|
Small and mid-sized companies (PYMEs)
|
2,373,360
|
192,825
|
34,460
|
7,168
|
(75,742)
|
(67,059)
|
91,652
|
Institutional
|
332,150
|
19,675
|
2,452
|
1,974
|
(1,229)
|
(10,108)
|
12,764
|
Companies
|
3,286,920
|
126,936
|
20,215
|
15,047
|
(45,769)
|
(32,623)
|
83,806
|
Companies
|
1,353,400
|
57,077
|
11,298
|
7,150
|
(18,922)
|
(15,796)
|
40,807
|
Large Corporations
|
1,410,578
|
52,678
|
6,121
|
7,129
|
(27,983)
|
(12,784)
|
25,161
|
Real estate
|
522,942
|
17,181
|
2,796
|
768
|
1,136
|
(4,043)
|
17,838
|
Commercial Banking
|
14,371,399
|
872,936
|
248,968
|
29,216
|
(237,302)
|
(400,998)
|
512,820
|
Global Banking and Markets
|
1,293,221
|
60,164
|
23,173
|
56,364
|
(15,495)
|
(30,788)
|
93,418
|
Corporate
|
1,293,221
|
69,786
|
24,452
|
1,445
|
(15,495)
|
(11,592)
|
68,596
|
Treasury
|
-
|
(9,622)
|
(1,279)
|
54,919
|
-
|
(19,196)
|
24,822
|
Other
|
62,662
|
6,619
|
(8,559)
|
10,408
|
(1,118)
|
(20,150)
|
(12,800)
|
Total
|
15,727,282
|
939,719
|
263,582
|
95,988
|
(253,915)
|
(451,936)
|
593,438
|
Other operating income
|
43,608
|
Other operating expenses
|
(45,402)
|
Income from investments in other companies
|
1,171
|
Income tax expense
|
(85,343)
|
Consolidated income for the period
|
507,472
|
1)
|
Corresponds to Loans and accounts receivable from customers, net (Ch$ 15,232,163 million) plus interbank loans, net (Ch$69,672 million), before deduction of their allowances for loan losses (Ch$425,393 million and Ch$54 million, respectively), which were restituted for presentation purposes in this table.
|
(2)
|
Results from financial operations. Correspond to the sum of Net income from financial operations (Ch$38,755 million) and foreign exchange profit (loss), net (Ch$57,233 million).
|
(3)
|
Corresponds to the sum of Personnel salaries and expenses (Ch$250,265 million), administrative expenses (Ch$147,343 million), depreciation and amortization (Ch$49,403 million) and impairment (Ch$4,925 million).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2009
|
|||||||
Loans and accounts receivables from customers, net (1)
|
Net Interest income
|
Net fee and commission income
|
ROF
(2)
|
Provisions
|
Support expenses
(3)
|
Segment’s net contribution
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Segments
|
|||||||
Individuals
|
7,287,925
|
532,060
|
171,433
|
19,027
|
(229,733)
|
(268,934)
|
223,853
|
Santander Banefe
|
609,808
|
115,840
|
29,452
|
5,078
|
(82,564)
|
(54,913)
|
12,893
|
Commercial Banking
|
6,678,117
|
416,220
|
141,981
|
13,949
|
(147,169)
|
(214,021)
|
210,960
|
Small and mid-sized companies (PYMEs)
|
2,485,505
|
228,928
|
41,917
|
11,037
|
(76,143)
|
(58,741)
|
146,998
|
Institutional
|
282,933
|
18,789
|
1,962
|
664
|
(327)
|
(6,799)
|
14,289
|
Companies
|
2,456,321
|
114,932
|
20,567
|
16,181
|
(24,626)
|
(30,628)
|
96,426
|
Companies
|
1,051,875
|
53,407
|
9,813
|
7,248
|
(8,618)
|
(15,989)
|
45,861
|
Large Corporations
|
968,097
|
43,733
|
8,416
|
8,785
|
(18,049)
|
(10,359)
|
32,526
|
Real estate
|
436,349
|
17,792
|
2,338
|
148
|
2,041
|
(4,280)
|
18,039
|
Commercial Banking
|
12,512,684
|
894,709
|
235,879
|
46,909
|
(330,829)
|
(365,102)
|
481,566
|
Global Banking and Markets
|
1,209,547
|
33,238
|
18,747
|
64,557
|
(2,218)
|
(29,485)
|
84,839
|
Corporate
|
1,209,547
|
54,228
|
19,387
|
5
|
(2,218)
|
(14,803)
|
56,599
|
Treasury
|
-
|
(20,990)
|
(640)
|
64,552
|
-
|
(14,682)
|
28,240
|
Other
|
29,045
|
(71,431)
|
(496)
|
55,662
|
(98)
|
(13,307)
|
(29,670)
|
Total
|
13,751,276
|
856,516
|
254,130
|
167,128
|
(333,145)
|
(407,894)
|
536,735
|
Other operating income
|
25,866
|
Other operating expenses
|
(37,364)
|
Income from investments in other companies
|
297
|
Income tax expense
|
(88,924)
|
Consolidated income for the period
|
436,610
|
(1)
|
Corresponds to Loans and accounts receivable from customers, net (Ch$ 13,378,379 million) plus interbank loans, net (Ch$23,370 million), before deduction of their allowances for loan losses (Ch$ 349,485 million and Ch$ 42 million, respectively), which were restituted for presentation purposes in this table.
|
(2)
|
Results from financial operations. Corresponds to the sum of Net income from financial operations (Ch$ 3,887 million) and foreign exchange profit (loss), net (Ch$ 163,241 million).
|
(3)
|
Corresponds to the sum of Personnel salaries and expenses (Ch$ 224,484 million), administrative expenses (Ch$ 136,712 million), depreciation and amortization (Ch$ 46,623 million) and impairment (Ch$ 75 million).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
The detail of the balances included under cash and cash equivalents is as follows:
|
As of December 31,
|
||||||
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
Cash and deposits in banks
|
||||||
Cash
|
369,585
|
354,340
|
||||
Deposits in the Central Bank of Chile
|
2,142,550
|
1,312,111
|
||||
Deposits in domestic banks
|
465
|
418
|
||||
Deposits in foreign banks
|
281,101
|
95,329
|
||||
Subtotals – Cash and bank deposits
|
2,793,701
|
1,762,198
|
||||
Unsettled transactions, net
|
186,968
|
74,243
|
||||
Cash and cash equivalents
|
2,980,669
|
1,836,441
|
b)
|
Cash in process of collection:
|
As of December 31,
|
||||||
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
Assets
|
||||||
Documents held by other banks (documents to be exchanged)
|
188,907
|
207,346
|
||||
Funds receivable
|
87,547
|
167,022
|
||||
Subtotals
|
276,454
|
374,368
|
||||
Liabilities
|
||||||
Funds payable
|
89,486
|
300,125
|
||||
Subtotals
|
89,486
|
300,125
|
||||
Cash in process of collection, net
|
186,968
|
74,243
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||
2011
|
2010
|
||||
MCh$
|
MCh$
|
||||
Chilean Central Bank and Government securities:
|
|||||
Chilean Central Bank Bonds
|
311,503
|
247,019
|
|||
Chilean Central Bank Notes
|
60,233
|
68,985
|
|||
Other Chilean Central Bank and Government securities
|
15,789
|
7,123
|
|||
Subtotals
|
387,525
|
323,127
|
|||
Other Chilean securities:
|
|||||
Time deposits in Chilean financial institutions
|
-
|
-
|
|||
Mortgage finance bonds of Chilean financial institutions
|
-
|
-
|
|||
Chilean financial institutions bonds
|
-
|
19,628
|
|||
Chilean corporate bonds
|
-
|
11,404
|
|||
Other Chilean securities
|
-
|
-
|
|||
Subtotals
|
-
|
31,032
|
|||
Foreign financial securities:
|
|||||
Foreign Central Banks and Government securities
|
-
|
-
|
|||
Other foreign financial instruments
|
-
|
-
|
|||
Subtotals
|
-
|
-
|
|||
Investments in mutual funds:
|
|||||
Funds managed by related entities
|
22,238
|
25,511
|
|||
Funds managed by others
|
-
|
-
|
|||
Subtotals
|
22,238
|
25,511
|
|||
Total
|
409,763
|
379,670
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Rights arising from resale agreements
|
As of December 31,
|
||||||||||
2011
|
2010
|
|||||||||
From 1 day and less than 3 months
|
More than 3
months and less than 1 year
|
More than 1 year
|
Total
|
From 1 day and less than 3 months
|
More than 3 months and less than 1 year
|
More than 1 year
|
Total
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Chilean Central Bank and Government securities:
|
||||||||||
Chilean Central Bank Bonds
|
12,928
|
-
|
-
|
12,928
|
170,985
|
-
|
-
|
170,985
|
||
Chilean Central Bank Notes
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Other Chilean Central Bank and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Subtotals
|
12,928
|
-
|
-
|
12,928
|
170,985
|
-
|
-
|
170,985
|
||
Other Chilean securities:
|
||||||||||
Time deposits in Chilean financial institutions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Mortgage finance bonds of Chilean financial institutions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Chilean financial institutions bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Chilean corporate bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Other Chilean securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Foreign financial securities:
|
||||||||||
Foreign Central Banks and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Other foreign financial instruments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Investments in mutual funds:
|
||||||||||
Funds managed by related entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Funds managed by others
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Total
|
12,928
|
-
|
-
|
12,928
|
170,985
|
-
|
-
|
170,985
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Obligations arising from repurchase agreements
|
As of December 31,
|
|||||||||
2011
|
2010
|
||||||||
From 1 day and less than 3 months
|
More than 3 months and less than 1 year
|
More than
1 year
|
Total
|
From 1 day and less than 3 months
|
More than 3 months and less than 1 year
|
More than
1 year
|
Total
|
||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
Chilean Central Bank and Government securities:
|
|||||||||
Chilean Central Bank Bonds
|
27,638
|
-
|
-
|
27,638
|
140,005
|
-
|
-
|
140,005
|
|
Chilean Central Bank Notes
|
270,591
|
-
|
-
|
270,591
|
3,515
|
-
|
-
|
3,515
|
|
Other Chilean Central Bank and Government securities
|
-
|
-
|
-
|
-
|
21
|
-
|
-
|
21
|
|
Subtotals
|
298,229
|
-
|
-
|
298,229
|
143,541
|
-
|
-
|
143,541
|
|
Other Chilean securities:
|
|||||||||
Time deposits in Chilean financial institutions
|
243,548
|
2,584
|
-
|
246,132
|
150,236
|
936
|
-
|
151,172
|
|
Mortgage finance bonds of Chilean financial institutions
|
18
|
2
|
-
|
20
|
12
|
-
|
-
|
12
|
|
Chilean financial institutions bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Chilean corporate bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other Chilean securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Subtotals
|
243,566
|
2,586
|
-
|
246,152
|
150,248
|
936
|
-
|
151,184
|
|
Foreign financial securities:
|
|||||||||
Foreign Central Banks and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other foreign financial instruments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Investments in mutual funds:
|
|||||||||
Funds managed by related entities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Funds managed by others
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total
|
541,795
|
2,586
|
-
|
544,381
|
293,789
|
936
|
-
|
294,725
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||||
2011
|
2010
|
||||||
Available
for sale Portfolio
|
Trading Portfolio
|
Total Instruments with agreement
|
Available for sale portfolio
|
Trading Portfolio
|
Total Instruments with agreement
|
||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
Chilean Central Bank and Government securities:
|
|||||||
Chilean Central Bank Bonds
|
27,688
|
-
|
27,688
|
140,494
|
-
|
140,494
|
|
Chilean Central Bank Notes
|
245,635
|
27,017
|
272,652
|
3,518
|
-
|
3,518
|
|
Other Chilean Central Bank and Government securities
|
-
|
-
|
-
|
22
|
-
|
22
|
|
Subtotals
|
273,323
|
27,017
|
300,340
|
144,034
|
-
|
144,034
|
|
Other Chilean securities:
|
|||||||
Time deposits in Chilean financial institutions
|
246,205
|
-
|
246,205
|
152,126
|
-
|
152,126
|
|
Mortgage finance bonds of Chilean financial institutions
|
19
|
-
|
19
|
12
|
-
|
12
|
|
Chilean financial institutions bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Chilean corporate bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other Chilean securities
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Subtotals
|
246,224
|
-
|
246,224
|
152,138
|
-
|
152,138
|
|
Foreign financial securities:
|
|||||||
Foreign Central Banks and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other foreign financial instruments
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Investments in mutual funds:
|
|||||||
Funds managed by related entities
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Funds managed by others
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total
|
519,547
|
27,017
|
546,564
|
296,172
|
-
|
296,172
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
As of December 31, 2011 and 2010 the Bank holds the following portfolio of derivative instruments:
|
As of December 31, 2011
|
|||||||||||
Notional amount
|
Fair value
|
||||||||||
Up to 3
months
|
More than 3
months to
1 year
|
More than
1 year
|
Total
|
Assets
|
Liabilities
|
||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||||
Fair value hedge derivatives
|
|||||||||||
Currency forwards
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate swaps
|
-
|
368,885
|
444,845
|
813,730
|
22,374
|
35
|
|||||
Cross currency swaps
|
30,989
|
-
|
277,469
|
308,458
|
20,498
|
869
|
|||||
Call currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Call interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Subtotals
|
30,989
|
368,885
|
722,314
|
1,122,188
|
42,872
|
904
|
|||||
Cash flow hedge derivatives
|
|||||||||||
Currency forwards
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate swaps
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Cross currency swaps
|
284,875
|
1,234,882
|
394,050
|
1,913,807
|
94,544
|
713
|
|||||
Call currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Call interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Subtotals
|
284,875
|
1,234,882
|
394,050
|
1,913,807
|
94,544
|
713
|
|||||
Trading derivatives
|
|||||||||||
Currency forwards
|
14,305,612
|
8,473,390
|
604,935
|
23,383,937
|
264,574
|
217,022
|
|||||
Interest rate swaps
|
5,527,118
|
11,459,132
|
13,716,043
|
30,702,293
|
264,084
|
302,327
|
|||||
Cross currency swaps
|
1,405,419
|
2,511,430
|
10,688,479
|
14,605,328
|
934,045
|
769,203
|
|||||
Call currency options
|
36,180
|
23,502
|
-
|
59,682
|
740
|
560
|
|||||
Call interest rate options
|
5,855
|
18,773
|
29,672
|
54,300
|
68
|
256
|
|||||
Put currency options
|
14,416
|
17,503
|
-
|
31,919
|
750
|
1,017
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
102,084
|
1,694
|
-
|
103,778
|
219
|
400
|
|||||
Subtotals
|
21,396,684
|
22,505,424
|
25,039,129
|
68,941,237
|
1,464,480
|
1,290,785
|
|||||
Total
|
21,712,548
|
24,109,191
|
26,155,493
|
71,977,232
|
1,601,896
|
1,292,402
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2010
|
|||||||||||
Notional amount
|
Fair value
|
||||||||||
Up to 3
months
|
More than 3 months to
1 year
|
More than
1 year
|
Total
|
Assets
|
Liabilities
|
||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||||
Fair value hedge derivatives
|
|||||||||||
Currency forwards
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate swaps
|
-
|
-
|
702,306
|
702,306
|
5,827
|
6,464
|
|||||
Cross currency swaps
|
28,090
|
229,296
|
387,024
|
644,410
|
5,296
|
28,730
|
|||||
Call currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Call interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Subtotals
|
28,090
|
229,296
|
1,089,330
|
1,346,716
|
11,123
|
35,194
|
|||||
Cash flow hedge derivatives
|
|||||||||||
Currency forwards
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate swaps
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Cross currency swaps
|
147,872
|
999,792
|
379,859
|
1,527,523
|
494
|
120,563
|
|||||
Call currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Call interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put currency options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Subtotals
|
147,872
|
999,792
|
379,859
|
1,527,523
|
494
|
120,563
|
|||||
Trading derivatives
|
|||||||||||
Currency forwards
|
10,374,003
|
6,830,128
|
792,254
|
17,996,385
|
283,722
|
348,152
|
|||||
Interest rate swaps
|
2,671,634
|
7,607,192
|
13,475,904
|
23,754,730
|
204,786
|
250,812
|
|||||
Cross currency swaps
|
1,081,609
|
2,783,653
|
10,061,745
|
13,927,007
|
1,123,547
|
887,222
|
|||||
Call currency options
|
20,724
|
29,247
|
936
|
50,907
|
272
|
233
|
|||||
Call interest rate options
|
34,076
|
16,690
|
59,676
|
110,442
|
82
|
1,269
|
|||||
Put currency options
|
6,364
|
4,906
|
-
|
11,270
|
230
|
385
|
|||||
Put interest rate options
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Interest rate futures
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||
Other derivatives
|
165,208
|
-
|
-
|
165,208
|
122
|
149
|
|||||
Subtotals
|
14,353,618
|
17,271,816
|
24,390,515
|
56,015,949
|
1,612,761
|
1,488,222
|
|||||
Total
|
14,529,580
|
18,500,904
|
25,859,704
|
58,890,188
|
1,624,378
|
1,643,979
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Hedge Accounting
|
As of December 31, 2011
|
|||||
Notional amount
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Corporate bonds
|
-
|
11,188
|
-
|
-
|
11,188
|
Subordinated bonds
|
-
|
158,124
|
-
|
-
|
158,124
|
Short-term loans
|
-
|
25,000
|
-
|
25,000
|
|
Interbank loans
|
-
|
-
|
-
|
-
|
-
|
Mortgage bonds
|
-
|
-
|
-
|
28,339
|
28,339
|
Senior bonds
|
35,629
|
25,050
|
-
|
-
|
60,679
|
Time deposits
|
364,245
|
-
|
326,129
|
148,484
|
838,858
|
Total
|
399,874
|
219,362
|
326,129
|
176,823
|
1,122,188
|
Hedging instrument
|
|||||
Cross currency swap
|
30,989
|
183,174
|
65,956
|
28,339
|
308,458
|
Interest rate swap
|
364,245
|
11,188
|
260,173
|
-
|
635,606
|
Call money swap
|
4,640
|
25,000
|
-
|
148,484
|
178,124
|
Total
|
399,874
|
219,362
|
326,129
|
176,823
|
1,122,188
|
As of December 31, 2010
|
|||||
Notional amount
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Corporate bonds
|
-
|
10,061
|
-
|
-
|
10,061
|
Senior bonds
|
-
|
374,360
|
358,862
|
49,591
|
782,813
|
Subordinated bonds
|
-
|
51,475
|
140,385
|
-
|
191,860
|
Short-term loans
|
-
|
25,000
|
-
|
-
|
25,000
|
Interbank loans
|
210,591
|
-
|
-
|
-
|
210,591
|
Time deposits
|
46,795
|
4,640
|
-
|
-
|
51,435
|
Mortgage bonds
|
-
|
-
|
-
|
74,956
|
74,956
|
Total
|
257,386
|
465,536
|
499,247
|
124,547
|
1,346,716
|
Hedging instrument
|
|||||
Cross currency swap
|
257,386
|
46,796
|
265,272
|
74,956
|
644,410
|
Interest rate swap
|
-
|
389,100
|
233,975
|
-
|
623,075
|
Call money swap
|
-
|
29,640
|
-
|
49,591
|
79,231
|
Total
|
257,386
|
465,536
|
499,247
|
124,547
|
1,346,716
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
|||||
Notional amount
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Interbank loans
|
1,142,238
|
147,329
|
-
|
-
|
1,289,567
|
Bonds
|
377,519
|
246,721
|
-
|
-
|
624,240
|
Total
|
1,519,757
|
394,050
|
-
|
-
|
1,913,807
|
Hedging instrument
|
|||||
Cross currency swap
|
1,519,757
|
394,050
|
-
|
-
|
1,913,807
|
Total
|
1,519,757
|
394,050
|
-
|
-
|
1,913,807
|
As of December 31, 2010
|
|||||
Notional amount
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Interbank loans
|
937,087
|
95,930
|
-
|
-
|
1,033,017
|
Bonds
|
210,577
|
283,929
|
-
|
-
|
494,506
|
Total
|
1,147,664
|
379,859
|
-
|
-
|
1,527,523
|
Hedging instrument
|
|||||
Cross currency swap
|
1,147,664
|
379,859
|
-
|
-
|
1,527,523
|
Total
|
1,147,664
|
379,859
|
-
|
-
|
1,527,523
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Inflows
|
-
|
-
|
-
|
-
|
-
|
Outflows
|
(26,147)
|
(9,791)
|
-
|
-
|
(35,938)
|
Net flows
|
(26,147)
|
(9,791)
|
-
|
-
|
(35,938)
|
Hedging instrument
|
|||||
Inflows
|
26,147
|
9,791
|
-
|
-
|
35,938
|
Outflows
|
(44,257)
|
(13,692)
|
-
|
-
|
(57,949)
|
Net flows
|
(18,110)
|
(3,901)
|
-
|
-
|
(22,011)
|
As of December 31, 2010
|
|||||
Within 1 year
|
Between 1 and 3 years
|
Between 3 and 6 years
|
Over 6 years
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Hedged item
|
|||||
Inflows
|
-
|
-
|
-
|
-
|
-
|
Outflows
|
(17,627)
|
(5,696)
|
-
|
-
|
(23,323)
|
Net flows
|
(17,627)
|
(5,696)
|
-
|
-
|
(23,323)
|
Hedging instrument
|
|||||
Inflows
|
17,627
|
5,696
|
-
|
-
|
23,323
|
Outflows
|
(30,044)
|
(9,772)
|
-
|
-
|
(39,816)
|
Net flows
|
(12,417)
|
(4,076)
|
-
|
-
|
(16,493)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Gains and losses cash flow hedges that were recognized in other comprehensive income as for the periods ended as of December 31, 2011 and 2010, is shown below:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Bonds
|
(1,892)
|
-
|
-
|
||
Loans
|
2,286
|
11,958
|
(3,162)
|
||
Net flows
|
394
|
11,958
|
(3,162)
|
d)
|
Below is a presentation of income generated by cash flow hedges amounts that were reclassified from other comprehensive income to profit and loss during the period:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Bonds
|
(121)
|
-
|
-
|
||
Loans
|
(346)
|
-
|
(66)
|
||
Reclassification to profit and loss
|
(467)
|
-
|
(66)
|
e)
|
Hedges of net investments in foreign operations:
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
At December 31, 2011 and 2010, the balances in the “Interbank loans” item are as follows:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Domestic banks
|
|||
Loans and advances to banks
|
-
|
-
|
|
Deposits in the Central Bank of Chile
|
-
|
-
|
|
Nontransferable Chilean Central Bank Bonds
|
-
|
-
|
|
Other Central Bank of Chile loans
|
-
|
-
|
|
Interbank loans
|
647
|
17
|
|
Overdrafts in checking accounts
|
-
|
-
|
|
Nontransferable domestic bank loans
|
-
|
-
|
|
Other domestic bank loans
|
-
|
-
|
|
Allowances and impairment for domestic bank loans
|
-
|
-
|
|
Foreign banks
|
|||
Loans to foreign banks
|
87,041
|
69,709
|
|
Overdrafts in current accounts
|
-
|
-
|
|
Nontransferable foreign bank deposits
|
-
|
-
|
|
Other foreign bank loans
|
-
|
-
|
|
Allowances and impairment for foreign bank loans
|
(11)
|
(54)
|
|
Total
|
87,677
|
69,672
|
b)
|
The amount in each period for allowances and impairment of interbank loans, which are included in the “Provisions for loan losses” item of the Consolidated Statement of Income, is shown below:
|
As of December 31, | |||||||
2011
|
2010 | ||||||
Domestic banks | Foreign banks | Total | Domestic banks | Foreign banks | Total | ||
MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||
As of January 1
|
-
|
54
|
54
|
-
|
42
|
42
|
|
Charge-offs
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Allowances established
|
405
|
59
|
464
|
-
|
131
|
131
|
|
Allowances released
|
(405)
|
(102)
|
(507)
|
-
|
(119)
|
(119)
|
|
Total
|
-
|
11
|
11
|
-
|
54
|
54
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Loans and accounts receivable from customers
|
Assets before allowances
|
Allowance established
|
||||||||
As of December 31, 2011
|
Normal
portfolio
|
Impaired
loans
|
Total
|
Individual allowances
|
Group allowances
|
Total
|
Loans and accounts receivable from customers, net | ||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Commercial loans
|
|||||||||
Commercial loans
|
6,037,507
|
564,865
|
6,602,372
|
79,487
|
81,802
|
161,289
|
6,441,083
|
||
Foreign trade loans
|
988,024
|
54,000
|
1,042,024
|
18,705
|
1,059
|
19,764
|
1,022,260
|
||
General purpose mortgage loans
|
121,962
|
10,421
|
132,383
|
287
|
3,097
|
3,384
|
128,999
|
||
Factoring transactions
|
186,147
|
2,483
|
188,630
|
1,039
|
822
|
1,861
|
186,769
|
||
Leasing transactions
|
1,185,930
|
51,745
|
1,237,675
|
13,099
|
6,167
|
19,266
|
1,218,409
|
||
Other loans and accounts
receivables from customers
|
66,046
|
18,455
|
84,501
|
70
|
4,168
|
4,238
|
80,263
|
||
Subtotals
|
8,585,616
|
701,969
|
9,287,585
|
112,687
|
97,115
|
209,802
|
9,077,783
|
||
Mortgage loans
|
|||||||||
Loans with mortgage finance bonds
|
109,790
|
4,068
|
113,858
|
-
|
707
|
707
|
113,151
|
||
Mortgage mutual loans
|
68,844
|
3,034
|
71,878
|
-
|
1,241
|
1,241
|
70,637
|
||
Other mortgage mutual loans
|
4,737,333
|
192,594
|
4,929,927
|
-
|
33,685
|
33,685
|
4,896,242
|
||
Leasing transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
|||
Subtotals
|
4,915,967
|
199,696
|
5,115,663
|
-
|
35,633
|
35,633
|
5,080,030
|
||
Consumer loans
|
|||||||||
Installment consumer loans
|
1,425,369
|
383,225
|
1,808,594
|
-
|
193,874
|
193,874
|
1,614,720
|
||
Credit card balances
|
889,303
|
31,549
|
920,852
|
-
|
43,922
|
43,922
|
876,930
|
||
Consumer Leasing contracts
|
3,551
|
176
|
3,727
|
-
|
109
|
109
|
3,618
|
||
Other consumer loans
|
203,933
|
6,740
|
210,673
|
-
|
5,117
|
5,117
|
205,556
|
||
Subtotals
|
2,522,156
|
421,690
|
2,943,846
|
-
|
243,022
|
243,022
|
2,700,824
|
||
Total
|
16,023,739
|
1,323,355
|
17,347,094
|
112,687
|
375,770
|
488,457
|
16,858,637
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Assets before allowances
|
Allowances established
|
||||||||
As of December 31, 2010
|
Normal portfolio
|
Impaired
loans
|
Total
|
Individual allowances
|
Group allowances
|
Total
|
Loans and accounts receivable from customers,
net
|
||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Commercial loans
|
|||||||||
Commercial loans
|
5,425,362
|
681,755
|
6,107,117
|
56,198
|
76,577
|
132,775
|
5,974,342
|
||
Foreign trade loans
|
696,659
|
86,893
|
783,552
|
18,810
|
78
|
18,888
|
764,664
|
||
General purpose mortgage loans
|
44,730
|
23,226
|
67,956
|
780
|
3,570
|
4,350
|
63,606
|
||
Factoring transactions
|
201,321
|
4,819
|
206,140
|
1,711
|
372
|
2,083
|
204,057
|
||
Leasing transactions
|
1,045,793
|
77,123
|
1,122,916
|
13,085
|
1,657
|
14,742
|
1,108,174
|
||
Other Loans and Accounts
|
2,953
|
14,995
|
17,948
|
5,976
|
3,688
|
9,664
|
8,284
|
||
Subtotals
|
7,416,818
|
888,811
|
8,305,629
|
96,560
|
85,942
|
182,502
|
8,123,127
|
||
Mortgage loans
|
|||||||||
Loans with mortgage finance bonds
|
133,640
|
4,454
|
138,094
|
-
|
446
|
446
|
137,648
|
||
Mortgage mutual loans
|
121,041
|
63,323
|
184,364
|
-
|
11,319
|
11,319
|
173,045
|
||
Other mortgage mutual loans
|
4,253,810
|
74,869
|
4,328,679
|
-
|
5,567
|
5,567
|
4,323,112
|
||
Leasing transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Subtotals
|
4,508,491
|
142,646
|
4,651,137
|
-
|
17,332
|
17,332
|
4,633,805
|
||
Consumer loans
|
|||||||||
Installment consumer loans
|
1,192,464
|
412,139
|
1,604,603
|
-
|
176,219
|
176,219
|
1,428,384
|
||
Credit card balances
|
771,988
|
22,228
|
794,216
|
-
|
36,156
|
36,156
|
758,060
|
||
Leasing transactions
|
3,407
|
328
|
3,735
|
-
|
121
|
121
|
3,614
|
||
Other consumer loans
|
283,912
|
14,324
|
298,236
|
-
|
13,063
|
13,063
|
285,173
|
||
Subtotals
|
2,251,771
|
449,019
|
2,700,790
|
-
|
225,559
|
225,559
|
2,475,231
|
||
Total
|
14,177,080
|
1,480,476
|
15,657,556
|
96,560
|
328,833
|
425,393
|
15,232,163
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Portfolio characteristics:
|
Domestic loans (*)
|
Foreign loans (**)
|
Total loans
|
Distribution percentage
|
||||||||
As of December 31,
|
As of December 31,
|
As of December 31,
|
As of December 31,
|
||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
%
|
%
|
||||
Commercial loans
|
|||||||||||
Manufacturing
|
834,011
|
838,324
|
-
|
-
|
834,011
|
838,324
|
4.78
|
5.33
|
|||
Mining
|
266,442
|
106,119
|
-
|
-
|
266,442
|
106,119
|
1.53
|
0.67
|
|||
Electricity, gas, and water
|
221,039
|
149,907
|
-
|
-
|
221,039
|
149,907
|
1.27
|
0.95
|
|||
Agriculture and livestock
|
760,527
|
679,159
|
-
|
-
|
760,527
|
679,159
|
4.36
|
4.32
|
|||
Forest
|
89,353
|
84,375
|
-
|
-
|
89,353
|
84,375
|
0.51
|
0.54
|
|||
Fishing
|
144,162
|
133,930
|
-
|
-
|
144,162
|
133,930
|
0.83
|
0.85
|
|||
Transport
|
473,414
|
449,508
|
-
|
-
|
473,414
|
449,508
|
2.72
|
2.86
|
|||
Communications
|
252,528
|
214,881
|
-
|
-
|
252,528
|
214,881
|
1.45
|
1.37
|
|||
Construction
|
980,797
|
839,316
|
-
|
-
|
980,797
|
839,316
|
5.63
|
5.34
|
|||
Commerce
|
1,916,400
|
1,732,800
|
87,041
|
69,709
|
2,003,441
|
1,802,509
|
11.49
|
11.46
|
|||
Services
|
384,061
|
358,314
|
-
|
-
|
384,061
|
358,314
|
2.20
|
2.28
|
|||
Others
|
2,965,498
|
2,719,013
|
-
|
-
|
2,965,498
|
2,719,013
|
17.00
|
17.29
|
|||
Subtotals
|
9,288,232
|
8,305,646
|
87,041
|
69,709
|
9,375,273
|
8,375,355
|
53.77
|
53.26
|
|||
Mortgage loans
|
5,115,663
|
4,651,137
|
-
|
-
|
5,115,663
|
4,651,137
|
29.35
|
29.57
|
|||
Consumer loans
|
2,943,846
|
2,700,790
|
-
|
-
|
2,943,846
|
2,700,790
|
16.88
|
17.17
|
|||
Total
|
17,347,741
|
15,657,573
|
87,041
|
69,709
|
17,434,782
|
15,727,282
|
100.00
|
100.00
|
(*)
|
Includes domestic loans to financial institutions for Ch$ 647 million as of December 31 2011 (Ch$ 17 million as of December 31, 2010).
|
(**)
|
Includes foreign loans to financial institutions for Ch$87,041 million as of December 31, 2011 (Ch$ 69,709 million as of December 31, 2010), see Note 9.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Impaired loans
|
i)
|
As of December 31, 2011 and 2010, the composition of the Impaired loans portfolio is as follows:
|
As of December 31,
|
|||||||||||||||
2011
|
2010
|
||||||||||||||
Commercial
|
Mortgage
|
Consumer
|
Total
|
Commercial
|
Mortgage
|
Consumer
|
Total
|
||||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||||||
Individual impaired portfolio
|
285,930
|
-
|
-
|
285,930
|
444,129
|
-
|
-
|
444,129
|
|||||||
Non - performing loans
|
251,881
|
152,911
|
106,565
|
511,357
|
213,872
|
121,911
|
80,956
|
416,739
|
|||||||
Other impaired portfolio
|
164,158
|
46,785
|
315,125
|
526,068
|
230,810
|
20,735
|
368,063
|
619,608
|
|||||||
Total
|
701,969
|
199,696
|
421,690
|
1,323,355
|
888,811
|
142,646
|
449,019
|
1,480,476
|
ii)
|
The impaired secured and unsecured loan portfolio as of December 31, 2011 and 2010 is as follows:
|
As of December 31,
|
|||||||||||||||
2011
|
2010
|
||||||||||||||
Commercial
|
Mortgage
|
Consumer
|
Total
|
Commercial
|
Mortgage
|
Consumer
|
Total
|
||||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||||||
Secured debt
|
376,864
|
183,657
|
58,335
|
618,856
|
446,953
|
131,881
|
67,450
|
646,284
|
|||||||
Unsecured debt
|
325,105
|
16,039
|
363,355
|
704,499
|
441,858
|
10,765
|
381,569
|
834,192
|
|||||||
Total
|
701,969
|
199,696
|
421,690
|
1,323,355
|
888,811
|
142,646
|
449,019
|
1,480,476
|
iii)
|
The portfolio of non - performing loans secured and unsecured as of December 31, 2011 and 2010 is as follows:
|
As of December 31,
|
|||||||||||||||
2011
|
2010
|
||||||||||||||
Commercial
|
Mortgage
|
Consumer
|
Total
|
Commercial
|
Mortgage
|
Consumer
|
Total
|
||||||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||||||
Secured debt
|
116,201
|
138,234
|
9,920
|
264,355
|
96,007
|
111,708
|
7,071
|
214,786
|
|||||||
Unsecured debt
|
135,680
|
14,677
|
96,645
|
247,002
|
117,865
|
10,203
|
73,885
|
201,953
|
|||||||
Total
|
251,881
|
152,911
|
106,565
|
511,357
|
213,872
|
121,911
|
80,956
|
416,739
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
d)
|
Allowances
|
As of December 31,
|
|||||||
2011
|
2010
|
||||||
Individual allowances
|
Group allowances
|
Total
|
Individual allowances
|
Group allowances
|
Total
|
||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
As of January 1
|
96,560
|
328,833
|
425,393
|
78,297
|
271,188
|
349,485
|
|
Portfolio charge-offs:
|
|||||||
Commercial loans
|
(23,200)
|
(67,175)
|
(90,375)
|
(12,541)
|
(58,335)
|
(70,876)
|
|
Mortgage loans
|
-
|
(12,776)
|
(12,776)
|
-
|
(14,549)
|
(14,549)
|
|
Consumer loans
|
-
|
(187,937)
|
(187,937)
|
-
|
(121,621)
|
(121,621)
|
|
Total charge offs loans
|
(23,200)
|
(267,888)
|
(291,088)
|
(12,541)
|
(194,505)
|
(207,046)
|
|
Allowances established
|
81,068
|
374,237
|
455,305
|
41,632
|
268,920
|
310,552
|
|
Allowances released
|
(41,741)
|
(59,412)
|
(101,153)
|
(10,828)
|
(16,770)
|
(27,598)
|
|
Total as of December 31
|
112,687
|
375,770
|
488,457
|
96,560
|
328,833
|
425,393
|
e)
|
The following table shows recoveries by type of loan.
|
December 31,
|
||||||
2011
|
2010
|
2009
|
||||
MCh$
|
MCh$
|
MCh$
|
||||
Commercial loans
|
7,216
|
6,994
|
8,446
|
|||
Consumer loans
|
12,474
|
22,096
|
28,268
|
|||
Residential mortgage loans
|
16,135
|
1,389
|
2,560
|
|||
Total
|
35,825
|
30,479
|
39,724
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
f)
|
Allowances established on customer and interbank loans
|
December 31,
|
||||||
Reconciliation of provisions for Consolidated Statements of Cash Flow
|
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
||||
Allowances established – customer loans (letter d)
|
455,305
|
310,552
|
398,409
|
|||
Allowances established – interbank loans (Note 9)
|
464
|
131
|
7
|
|||
Allowances established on customer and interbank loans
|
455,769
|
310,683
|
398,416
|
|||
g)
|
Loans and accounts receivable from customers: Standard loans not overdue and overdue loans.
|
As of December 31,
|
||
2011
|
2010
|
|
MCh$
|
MCh$
|
|
Current
|
17,038,922
|
15,394,212
|
Overdue for 1-29 days
|
37,480
|
30,736
|
Overdue for 30-89 days
|
33,119
|
26,007
|
Overdue for 90 days or more (“past due”)
|
237,573
|
206,601
|
Total loans
|
17,347,094
|
15,657,556
|
Overdue loans expressed as a percentage of total loans
|
1.78%
|
1.68%
|
Past due loans as a percentage of total loans
|
1.37%
|
1.32%
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Sales of loans
|
As of December 31, 2011
|
||||
Carrying amount
|
Sales price
|
Allowances
|
Effect on profit or loss income
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Loan item
|
||||
Charge off Portfolio
|
-
|
8,180
|
856
|
7,324
|
Current Portfolio
|
6,630
|
8,998
|
-
|
2,368
|
(1)
|
Sale of allowance portfolio previously charged off. The total amount of the portfolio’s sale is MCh$ 8,810. Such amount was fully recorded as income from the sale of charged-off portfolio minus the corresponding provision for a total of MCh$ 856, leaving a net income of MCh$ 7,324 from selling loans and accounts receivable from customers from a charged off portfolio (Note 30).
|
(2)
|
Sale of current portfolio totaling MCh$ 8,998 equal to UF 405,925.69, generating an income from portfolio sale of approximately MCh$ 2,368 from selling loans and accounts receivables from customers from a current portfolio (Note 30).
|
As of December 31, 2010
|
||||
Carrying amount
|
Sales price
|
Allowances
|
Effect on income
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Loan item
|
||||
Charge off Portfolio
|
-
|
12,021
|
2,197
|
9,824
|
Current Portfolio
|
7,547
|
10,120
|
-
|
2,573
|
(1)
|
Sale of allowance portfolio previously charged off. The transfer or rights took place on November 2010 for MCh$ 12,021. Such amount was fully recorded as income from sale of charged off portfolio minus the corresponding provision for a total of MCh$ 2,197, leaving a net income of MCh$ 9,824 from selling Loans and accounts receivables from customers from a charged off portfolio (Note 30).
|
(2)
|
Sale of current portfolio totaling MCh$ 10,120 equal to UF 352,128.19, generating an income from portfolio sale of approximately MCh$ 2,573 from selling loans and accounts receivable from customers from a current portfolio (Note 30).
|
b)
|
Loans Purchase
|
-
|
Purchase from Banco Santander S.A. (Parent Company), located in Spain. The sale amount totaled USD 318.5 million (MCh$ 166,065 Sp); said value corresponds to the fair value of the loans, established by independent third parties.
|
-
|
Purchase from Banco Santander UK (corporation under common control), located in England. The sale amount totaled USD 526.4 million (MCh$ 274,496 Sp); said value corresponds to the fair value of the loans, established by independent third parties.
|
-
|
Purchase from Banco Santander New York (corporation under common control), located in the USA. The sale amount totaled USD 126.1 million (MCh$ 65,770 Sp); said value corresponds to the fair value of the loans, established by independent third parties.
|
-
|
As of December 31, 2011 the booked amount of loans purchased during 2011 is approximately USD 406.6 million (MCh$ 211,574 Sp).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Chilean Central Bank and Government securities
|
|||
Chilean Central Bank Bonds
|
570,573
|
555,981
|
|
Chilean Central Bank Notes
|
563,114
|
366,210
|
|
Other Chilean Central Bank and Government securities
|
173,839
|
175,296
|
|
Subtotals
|
1,307,526
|
1,097,487
|
|
Other Chilean securities
|
|||
Time deposits in Chilean financial institutions
|
275,022
|
-
|
|
Mortgage finance bonds of Chilean financial institutions
|
66,806
|
218,112
|
|
Chilean financial institution bonds
|
-
|
-
|
|
Chilean corporate bonds
|
-
|
-
|
|
Other Chilean securities
|
319
|
147,833
|
|
Subtotals
|
342,147
|
365,945
|
|
Foreign financial securities:
|
|||
Foreign Central Bank or Government securities
|
-
|
-
|
|
Other foreign financial securities
|
11,638
|
10,548
|
|
Subtotals
|
11,638
|
10,548
|
|
Total
|
1,661,311
|
1,473,980
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Proceeds from sale of available for sale investments generating realized profits
|
3,883,812
|
6,653,426
|
5,577,210
|
||
Realized gains
|
4,959
|
20,832
|
56,977
|
||
Proceeds from sale of available for sale investments generating realized losses
|
1,359,177
|
3,831,670
|
1,830,765
|
||
Realized losses
|
7,922
|
19,224
|
5,060
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
|||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||||
Chilean Central Bank and Government securities
|
||||||||||||||||
Chilean Central Bank Bonds
|
571,340
|
570,573
|
2,397
|
(3,164)
|
-
|
-
|
-
|
-
|
571,340
|
570,573
|
2,397
|
(3,164)
|
||||
Chilean Central Bank Notes
|
563,293
|
563,114
|
303
|
(482)
|
-
|
-
|
-
|
-
|
563,293
|
563,114
|
303
|
(482)
|
||||
Other Chilean Central Bank and Government securities
|
170,802
|
173,839
|
3,054
|
(17)
|
-
|
-
|
-
|
-
|
170,802
|
173,839
|
3,054
|
(17)
|
||||
Subtotals
|
1,305,435
|
1,307,526
|
5,754
|
(3,663)
|
-
|
-
|
-
|
-
|
1,305,435
|
1,307,526
|
5,754
|
(3,663)
|
||||
Other Chilean securities
|
||||||||||||||||
Time deposits in Chilean financial institutions
|
274,959
|
275,022
|
66
|
(3)
|
-
|
-
|
-
|
-
|
274,959
|
275,022
|
66
|
(3)
|
||||
Mortgage finance bonds of Chilean financial institutions
|
66,341
|
66,806
|
1,123
|
(658)
|
-
|
-
|
-
|
-
|
66,341
|
66,806
|
1,123
|
(658)
|
||||
Chilean financial institutions bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Chilean corporate bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Other Chilean securities
|
315
|
319
|
4
|
-
|
-
|
-
|
-
|
-
|
315
|
319
|
4
|
-
|
||||
Subtotals
|
341,615
|
342,147
|
1,193
|
(661)
|
-
|
-
|
-
|
-
|
341,615
|
342,147
|
1,193
|
(661)
|
||||
Foreign financial securities
|
||||||||||||||||
Foreign Central Bank and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Other foreign financial securities
|
11,218
|
11,638
|
420
|
-
|
-
|
-
|
-
|
-
|
11,218
|
11,638
|
420
|
-
|
||||
Subtotals
|
11,218
|
11,638
|
420
|
-
|
-
|
-
|
-
|
-
|
11,218
|
11,638
|
420
|
-
|
||||
Total
|
1,658,268
|
1,661,311
|
7,367
|
(4,324)
|
-
|
-
|
-
|
-
|
1,658,268
|
1,661,311
|
7,367
|
(4,324)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Less 12 months
|
More 12 months
|
Total
|
||||||||||||||
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized
gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
|||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||||
Chilean Central Bank and Government securities
|
||||||||||||||||
Chilean Central Bank Bonds
|
570,016
|
555,981
|
-
|
(14,035)
|
-
|
-
|
-
|
-
|
570,016
|
555,981
|
-
|
(14,035)
|
||||
Chilean Central Bank Notes
|
367,106
|
366,210
|
96
|
(992)
|
-
|
-
|
-
|
-
|
367,106
|
366,210
|
96
|
(992)
|
||||
Other Chilean Central Bank and Government securities
|
178,665
|
175,296
|
39
|
(3,408)
|
-
|
-
|
-
|
-
|
178,665
|
175,296
|
39
|
(3,408)
|
||||
Subtotals
|
1,115,787
|
1,097,487
|
135
|
(18,435)
|
-
|
-
|
-
|
-
|
1,115,787
|
1,097,487
|
135
|
(18,435)
|
||||
Other Chilean securities
|
||||||||||||||||
Time deposits in Chilean financial institutions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Mortgage finance bonds of Chilean financial institutions
|
218,840
|
218,112
|
909
|
(1,637)
|
-
|
-
|
-
|
-
|
218,840
|
218,112
|
909
|
(1,637)
|
||||
Chilean financial institutions bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Chilean corporate bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Other Chilean securities
|
147,855
|
147,833
|
9
|
(31)
|
-
|
-
|
-
|
-
|
147,855
|
147,833
|
9
|
(31)
|
||||
Subtotals
|
366,695
|
365,945
|
918
|
(1,668)
|
-
|
-
|
-
|
-
|
366,695
|
365,945
|
918
|
(1,668)
|
||||
Foreign financial securities
|
||||||||||||||||
Foreign Central Bank and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Other foreign financial securities
|
10,094
|
10,548
|
454
|
-
|
-
|
-
|
-
|
-
|
10,094
|
10,548
|
454
|
-
|
||||
Subtotals
|
10,094
|
10,548
|
454
|
-
|
-
|
-
|
-
|
-
|
10,094
|
10,548
|
454
|
-
|
||||
Total
|
1,492,576
|
1,473,980
|
1,507
|
(20,103)
|
-
|
-
|
-
|
-
|
1,492,576
|
1,473,980
|
1,507
|
(20,103)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
Cost
|
Fair value
|
Unrealized gains
|
Unrealized loss
|
|||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||||
Chilean Central Bank and Government securities
|
||||||||||||||||
Chilean Central Bank Bonds
|
1,077,180
|
1,063,879
|
200
|
(13,501)
|
-
|
-
|
-
|
-
|
1,077,180
|
1,063,879
|
200
|
(13,501)
|
||||
Chilean Central Bank Notes
|
264,866
|
264,011
|
31
|
(886)
|
-
|
-
|
-
|
-
|
264,866
|
264,011
|
31
|
(886)
|
||||
Other Chilean Central Bank and Government securities
|
220,609
|
212,362
|
19
|
(8,266)
|
-
|
-
|
-
|
-
|
220,609
|
212,362
|
19
|
(8,266)
|
||||
Subtotals
|
1,562,655
|
1,540,252
|
250
|
(22,653)
|
-
|
-
|
-
|
-
|
1,562,655
|
1,540,252
|
250
|
(22,653)
|
||||
Other Chilean securities
|
||||||||||||||||
Time deposits in Chilean financial institutions
|
41,388
|
41,407
|
19
|
-
|
-
|
-
|
-
|
-
|
41,388
|
41,407
|
19
|
-
|
||||
Mortgage finance bonds of Chilean financial institutions
|
244,097
|
236,847
|
80
|
(7,330)
|
-
|
-
|
-
|
-
|
244,097
|
236,847
|
80
|
(7,330)
|
||||
Chilean financial institution bonds
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Chilean corporate bonds
|
11,207
|
11,584
|
377
|
-
|
-
|
-
|
-
|
-
|
11,207
|
11,584
|
377
|
-
|
||||
Other Chilean securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Subtotals
|
296,692
|
289,838
|
476
|
(7,330)
|
-
|
-
|
-
|
-
|
296,692
|
289,838
|
476
|
(7,330)
|
||||
Foreign financial securities:
|
||||||||||||||||
Foreign Central Bank and Government securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Other foreign financial securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Subtotals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||
Total
|
1,859,347
|
1,830,090
|
726
|
(29,983)
|
-
|
-
|
-
|
-
|
1,859,347
|
1,830,090
|
726
|
(29,983)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
The Consolidated Statements of Financial Position reflect investments in other companies amounting to MCh$ 8,728 as of December 31, 2011 and, MCh$ 7,275 as of December 31, 2010, as shown in the following table:
|
Investment
|
|||||||||||
Ownership interest
|
Carrying value
|
Participation in income
|
|||||||||
As of December 31,
|
As of December 31,
|
As of December 31,
|
|||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
|||
%
|
%
|
%
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Company
|
|||||||||||
Centro de Compensación Automatizado
|
33.33
|
33.33
|
33.33
|
432
|
351
|
304
|
105
|
47
|
18
|
||
Redbank S.A.
|
33.43
|
33.43
|
33.43
|
1,929
|
1,633
|
1,756
|
323
|
136
|
191
|
||
Transbank S.A.
|
32.71
|
32.71
|
32.71
|
2,092
|
2,067
|
2,292
|
391
|
366
|
317
|
||
Sociedad Interbancaria de Depósito de Valores S.A.
|
29.28
|
29.28
|
29.28
|
461
|
451
|
415
|
58
|
125
|
93
|
||
Sociedad Nexus S.A.
|
12.90
|
12.90
|
12.90
|
941
|
941
|
921
|
114
|
114
|
94
|
||
Administrador Financiero del Transantiago S.A.
|
20.00
|
20.00
|
20.00
|
1,742
|
776
|
583
|
966
|
304
|
(614)
|
||
Cámara Compensación de Alto Valor S.A.
|
12.65
|
12.65
|
12.65
|
526
|
451
|
422
|
91
|
55
|
66
|
||
Subtotals
|
8,123
|
6,670
|
6,693
|
2,048
|
1,147
|
165
|
|||||
Shares or rights in other companies (*)
|
|||||||||||
Bladex
|
-
|
-
|
-
|
136
|
136
|
136
|
10
|
10
|
-
|
||
Bolsas de Comercio
|
-
|
-
|
-
|
417
|
417
|
358
|
82
|
-
|
69
|
||
Other (1)
|
-
|
-
|
-
|
52
|
52
|
230
|
-
|
14
|
63
|
||
Total
|
-
|
-
|
-
|
8,728
|
7,275
|
7,417
|
2,140
|
1,171
|
297
|
(1)
|
On March 24, 2010 Sociedad Santander S.A. Corredores de Bolsa, bought one share from CCLV Contraparte Central S.A., (an affiliate of Bolsa de Comercio de Santiago), which manages compensation systems and liquidation of financial instruments for variable income and derivative markets. The purchase price was MCh$ 4.
|
(*)
|
These investments in shares are held by the Bank and its subsidiaries because they are necessary to obtain the right to operate according to its line of business. The ownership interest in these companies is less than 1%.
|
b)
|
Investment in associates and other companies does not have quoted market prices.
|
c)
|
Summary of financial information of associates is as follows:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Assets
|
Liabilities
|
Equity
|
Net income
|
Assets
|
Liabilities
|
Equity
|
Net income
|
Assets
|
Liabilities
|
Equity
|
Net income
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Company:
|
||||||||||||||
Centro de Compensación Automatizado
|
1,586
|
334
|
937
|
315
|
1,416
|
378
|
897
|
141
|
1,203
|
294
|
850
|
59
|
||
Redbanc S.A.
|
15,009
|
9,529
|
4,515
|
965
|
10,990
|
6,226
|
4,357
|
407
|
10,426
|
5,346
|
4,509
|
571
|
||
Transbank S.A.
|
277,424
|
271,150
|
5,080
|
1,194
|
213,486
|
207,280
|
5,087
|
1,118
|
172,019
|
165,110
|
5,939
|
970
|
||
Sociedad Interbancaria de Depósito de Valores S.A.
|
1,576
|
53
|
1,179
|
344
|
1,392
|
-
|
963
|
429
|
1,261
|
-
|
943
|
318
|
||
Sociedad Nexus S.A.
|
15,497
|
9,085
|
5,250
|
1,162
|
12,733
|
6,321
|
5,532
|
880
|
12,891
|
6,479
|
5,682
|
730
|
||
Administrador Financiero del Transantiago S.A.
|
71,584
|
62,870
|
3,883
|
4,831
|
51,092
|
47,213
|
2,360
|
1,519
|
59,874
|
56,958
|
5,988
|
(3,072)
|
||
Cámara Compensación de Alto Valor S.A.
|
4,501
|
706
|
3,073
|
722
|
3,859
|
512
|
2,910
|
437
|
3,603
|
529
|
2,555
|
519
|
||
Total
|
387,177
|
353,727
|
23,917
|
9,533
|
294,968
|
267,930
|
22,107
|
4,931
|
261,277
|
234,716
|
26,466
|
95
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
d)
|
Restrictions over the capacity of associates to transfer funds to investors:
|
e)
|
Activity with respect to investments in associates and other companies is as follows:
|
As of December 31,
|
|||
2011
|
2010
|
2009
|
|
MCh$
|
MCh$
|
MCh$
|
|
Initial book value
|
7,275
|
7,417
|
7,277
|
Acquisition of investments
|
-
|
4
|
32
|
Sale of investments
|
-
|
-
|
(209)
|
Participation in income of investments
|
2,140
|
1,171
|
297
|
Dividends received
|
(795)
|
(1,081)
|
(833)
|
Other adjustments
|
108
|
(236)
|
853
|
Total
|
8,728
|
7,275
|
7,417
|
f)
|
Investments in other companies have not recognized any impairment loss during 2011, 2010 and 2009.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
As of December 31, 2011 and 2010, the composition of the item is as follows:
|
2011
|
||||||
Useful life
|
Remaining
useful life
|
Opening balance
January 1, 2011
|
Gross balance
|
Accumulated amortization
|
Net balance
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Licenses
|
3
|
2
|
2,108
|
8,085
|
(5,589)
|
2,496
|
Software development
|
3
|
1.8
|
75,882
|
184,133
|
(105,890)
|
78,243
|
Total
|
77,990
|
192,218
|
(111,479)
|
80,739
|
2010
|
||||||
Useful life
|
Remaining
useful life
|
Opening balance
January 1, 2010
|
Gross balance
|
Accumulated amortization
|
Net balance
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Licenses
|
3
|
2
|
1,544
|
6,229
|
(4,121)
|
2,108
|
Software development
|
3
|
1.6
|
75,716
|
150,090
|
(74,208)
|
75,882
|
Total
|
77,260
|
156,319
|
(78,329)
|
77,990
|
b)
|
The activity in intangible assets during 2011 and 2010 is as follows:
|
Licenses
|
Software development (acquired)
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
|
Gross balances 2011
|
|||
Opening balances as of January 1, 2011
|
6,229
|
150,090
|
156,319
|
Acquisitions
|
1,856
|
32,195
|
34,051
|
Disposals
|
-
|
(409)
|
(409)
|
Others
|
-
|
2,257
|
2,257
|
Balances as of December 31, 2011
|
8,085
|
184,133
|
192,218
|
Gross balances 2010
|
|||
Opening balances as of January 1, 2010
|
4,422
|
123,939
|
128,361
|
Acquisitions
|
1,807
|
26,524
|
28,331
|
Other
|
-
|
(373)
|
(373)
|
Balances as of December 31, 2010
|
6,229
|
150,090
|
156,319
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Accumulated amortization
|
Licenses
|
Software development (acquired)
|
Total
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balances as of January 1, 2011
|
(4,121)
|
(74,208)
|
(78,329)
|
Amortization for the period
|
(1,468)
|
(31,625)
|
(33,093)
|
Other changes
|
-
|
(57)
|
(57)
|
Balances as of December 31, 2011
|
(5,589)
|
(105,890)
|
(111,479)
|
Opening balances as of January 1, 2010
|
(2,878)
|
(48,223)
|
(51,101)
|
Amortization for the period
|
(1,243)
|
(25,985)
|
(27,228)
|
Other changes
|
-
|
-
|
-
|
Balances as of December 31, 2010
|
(4,121)
|
(74,208)
|
(78,329)
|
c)
|
The Bank does not have any restrictions on intangible assets. Additionally intangible assets have not been pledged as security for liabilities.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Property, plant and equipment as of December 31, 2011 and 2010, is as follows:
|
2011
|
||||
Opening balance
January 1, 2011
|
Gross balance
|
Accumulated depreciation
|
Net balance
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Land and buildings
|
126,550
|
159,579
|
(38,863)
|
120,716
|
Equipment
|
20,346
|
51,781
|
(29,211)
|
22,570
|
Ceded under operating leases
|
1,802
|
1,848
|
-
|
1,848
|
Other
|
6,287
|
24,081
|
(16,156)
|
7,925
|
Total
|
154,985
|
237,289
|
(84,230)
|
153,059
|
2010
|
||||
Opening balance
January 1, 2010
|
Gross balance
|
Accumulated depreciation
|
Net balance
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Land and buildings
|
161,922
|
155,821
|
(29,271)
|
126,550
|
Equipment
|
13,391
|
42,757
|
(22,411)
|
20,346
|
Ceded under operating leases
|
689
|
1,840
|
(38)
|
1,802
|
Other
|
8,120
|
18,943
|
(12,656)
|
6,287
|
Total
|
184,122
|
219,361
|
(64,376)
|
154,985
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
The activity in property, plant, and equipment during 2011 and 2010 is as follows:
|
2011
|
Land and buildings
|
Equipment
|
Ceded under an operating leases
|
Others
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balances as of January 1, 2011
|
155,821
|
42,757
|
1,840
|
18,943
|
219,361
|
Additions
|
8,326
|
8,503
|
5,741
|
4,119
|
26,689
|
Impairment due to damage (i)
|
-
|
(116)
|
-
|
-
|
(116)
|
Disposals (ii)
|
(8,508)
|
(132)
|
-
|
(5)
|
(8,645)
|
Transfers
|
3,940
|
769
|
(5,733)
|
1,024
|
-
|
Balances as of December 31, 2011
|
159,579
|
51,781
|
1,848
|
24,081
|
237,289
|
(i)
|
Banco Santander Chile has recognized in its financial statements as of December 31, 2011 an impairment of MCh$ 116 from damages to ATMs. Reimbursement payments received from the insurance company totaled MCh$ 437, which are presented in "Other operating income" (Note 36).
|
(ii)
|
In 2011 the Bank sold eight office branches which, at the time of sale, had a net carrying amount of approximately MCh$ 6,237.
|
2010
|
Land and buildings
|
Equipment
|
Ceded under
operating leases
|
Other
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balances as of January 1, 2010
|
180,868
|
27,993
|
727
|
17,513
|
227,101
|
Additions
|
7,884
|
7,781
|
-
|
3,336
|
19,001
|
Impairment due to damage (i)
|
(4,739)
|
(186)
|
-
|
-
|
(4,925)
|
Disposals (ii)
|
(26,968)
|
(235)
|
-
|
(114)
|
(27,317)
|
Transfers
|
(745)
|
-
|
745
|
-
|
-
|
Others
|
(479)
|
7,404
|
368
|
(1,792)
|
5,501
|
Balances as of December 31, 2010
|
155,821
|
42,757
|
1,840
|
18,943
|
219,361
|
(i)
|
As result of the earthquake that occurred on February 27, 2010 Banco Santander Chile recognized impairment losses for Ch$4,739 million for certain of its offices located in the damaged zone. In addition, an impairment loss of Ch$186 million was recognized for damages to ATMs. Reimbursement payments received from insurance totaled Ch$3,175 million, which are presented in line item "Other operating income"(See Note 36).
|
(ii)
|
In 2010 the Bank sold forty-three office branches and two buildings which, at the time of sale, had a net carrying amount of approximately MCh$26,110 (See Note 36).
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
2011
|
Land and buildings
|
Equipment
|
Ceded under
operating leases
|
Other
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balances as of January 1, 2011
|
(29,271)
|
(22,411)
|
(38)
|
(12,656)
|
(64,376)
|
Depreciation charges in the period
|
(10,011)
|
(6,845)
|
-
|
(3,517)
|
(20,373)
|
Sales and disposals in the period
|
419
|
45
|
-
|
17
|
481
|
Other
|
-
|
-
|
38
|
-
|
38
|
Balances as of December 31, 2011
|
(38,863)
|
(29,211)
|
-
|
(16,156)
|
(84,230)
|
2010
|
Land and buildings
|
Equipment
|
Ceded under
operating leases
|
Other
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balances as of January 1, 2010
|
(18,946)
|
(14,602)
|
(38)
|
(9,393)
|
(42,979)
|
Depreciation charges in the period
|
(11,103)
|
(7,809)
|
-
|
(3,263)
|
(22,175)
|
Sales and disposals in the period
|
778
|
-
|
-
|
-
|
778
|
Other
|
-
|
-
|
-
|
-
|
-
|
Balances as of December 31, 2010
|
(29,271)
|
(22,411)
|
(38)
|
(12,656)
|
(64,376)
|
c)
|
Operational leases – Lessor
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Due within 1 year
|
1,151
|
597
|
|
Due after 1 year but within 2 years
|
1,165
|
591
|
|
Due after 2 years but within 3 years
|
605
|
587
|
|
Due after 3 years but within 4 years
|
582
|
184
|
|
Due after 4 years but within 5 years
|
293
|
165
|
|
Due after 5 years
|
2,337
|
2,090
|
|
Total
|
6,133
|
4,214
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
d)
|
Operational leases – Lessee
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Due within 1 year
|
15,089
|
14,301
|
|
Due after 1 year but within 2 years
|
13,521
|
12,859
|
|
Due after 2 years but within 3 years
|
12,373
|
11,339
|
|
Due after 3 years but within 4 years
|
10,781
|
10,194
|
|
Due after 4 years but within 5 years
|
9,347
|
8,720
|
|
Due after 5 years
|
63,686
|
58,724
|
|
Total
|
124,797
|
116,137
|
e)
|
As of December 31, 2011 and 2010, the Bank has not entered into financial leases which cannot be unilaterally rescinded.
|
f)
|
As of December 31, 2011 and 2010, the Bank does not have any restriction on title of property, plant, and equipment. Additionally, property, plant, and equipment have not been pledged as security did liabilities. Moreover, the Bank had no due amounts related to acquisition of property, plant and equipment at those dates.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Current taxes
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Summary of current tax liabilities (assets)
|
|||
Current tax (assets)
|
(37,253)
|
(12,499)
|
|
Current tax liabilities
|
1,498
|
1,293
|
|
Total tax payable (recoverable)
|
(35,755)
|
(11,206)
|
|
(Assets) liabilities current taxes detail (net)
|
|||
Income tax, tax rate 20% and 17%
|
101,853
|
92,593
|
|
Minus:
|
|||
Provisional monthly payments (PPM)
|
(138,329)
|
(96,245)
|
|
Credit for training expenses
|
(1,366)
|
(1,328)
|
|
Other
|
2,087
|
(6,226)
|
|
Total tax payable (recoverable)
|
(35,755)
|
(11,206)
|
b)
|
Effect on income
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Income tax expense
|
|||||
Current tax
|
101,853
|
92,593
|
106,882
|
||
Credits (debits) for deferred taxes
|
|||||
Origination and reversal of temporary differences
|
(25,425)
|
(7,934)
|
(18,154)
|
||
Subtotals
|
76,428
|
84,659
|
88,728
|
||
Tax for rejected expenses Article No.21
|
716
|
684
|
196
|
||
Other
|
49
|
-
|
-
|
||
Net charges for income tax expense
|
77,193
|
85,343
|
88,924
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Effective tax rate reconciliation
|
As of December 31,
|
|||||||||||
2011
|
2010
|
2009
|
|||||||||
Tax
rate
|
Amount
|
Tax
rate
|
Amount
|
Tax
rate
|
Amount
|
||||||
%
|
MCh$
|
%
|
MCh$
|
%
|
MCh$
|
||||||
Income tax using statutory rate
|
20.00
|
96,771
|
17.00
|
100,779
|
17.00
|
89,341
|
|||||
Permanent differences
|
(2.00)
|
(8,790)
|
(1.42)
|
(8,427)
|
(0.06)
|
(304)
|
|||||
Additions or deductions
|
-
|
-
|
-
|
-
|
(0.05)
|
(250)
|
|||||
Unique tax (rejected expenses)
|
0.14
|
716
|
0.12
|
668
|
0.04
|
196
|
|||||
Effect of change in tax rate
|
(2.20)
|
(11,501)
|
(1.28)
|
(7,596)
|
-
|
-
|
|||||
Other
|
-
|
(3)
|
(0.01)
|
(81)
|
(0.01)
|
(59)
|
|||||
Effective rates and expenses for income tax
|
15.94
|
77,193
|
14.41
|
85,343
|
16.92
|
88,924
|
d)
|
Effect of deferred taxes on other comprehensive income
|
As of December 31,
|
||||||
2011
|
2010
|
2009
|
||||
MCh$
|
MCh$
|
MCh$
|
||||
Deferred tax assets
|
||||||
Available for sale investments
|
143
|
4,319
|
4,982
|
|||
Cash flow hedge
|
-
|
-
|
537
|
|||
Total deferred tax assets affecting other comprehensive income
|
143
|
4,319
|
5,519
|
|||
Deferred tax liabilities
|
||||||
Available for sale investments
|
(705)
|
(749)
|
-
|
|||
Cash flow hedge
|
(72)
|
(2,324)
|
-
|
|||
Total deferred tax liabilities affecting other comprehensive income
|
(777)
|
(3,073)
|
-
|
|||
Net deferred tax balances in equity
|
(634)
|
1,246
|
5,519
|
|||
Deferred taxes in equity attributable to Bank shareholders
|
(639)
|
1,203
|
5,490
|
|||
Deferred tax in equity attributable to non controlling interests
|
5
|
43
|
29
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
e)
|
Effect of deferred taxes on income
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Deferred tax assets
|
|||
Interest and adjustments
|
1,936
|
162
|
|
Loans charged offs
|
7,028
|
5,197
|
|
Assets received in lieu of payment
|
621
|
919
|
|
Exchange rate adjustments
|
1,890
|
560
|
|
Property, plant and equipment
|
5,906
|
5,491
|
|
Allowance for loan losses
|
66,667
|
46,585
|
|
Provision for expenses
|
15,961
|
6,606
|
|
Derivatives
|
27
|
4,300
|
|
Leased assets
|
31,244
|
22,007
|
|
Subsidiaries tax losses
|
4,229
|
4,168
|
|
Other
|
869
|
156
|
|
Total deferred tax assets
|
136,378
|
96,151
|
|
Deferred tax liabilities
|
|||
Valuation of investments
|
(2,301)
|
(1,056)
|
|
Depreciation
|
(178)
|
(443)
|
|
Prepaid expenses
|
(1,303)
|
(646)
|
|
Other
|
(756)
|
(223)
|
|
Total deferred tax liabilities
|
(4,538)
|
(2,368)
|
f)
|
Summary of deferred tax assets and liabilities
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Deferred tax assets
|
|||
Recognized in other comprehensive income
|
143
|
4,319
|
|
Recognized in profit or loss
|
136,378
|
96,151
|
|
Total deferred tax assets
|
136,521
|
100,470
|
|
Deferred tax liabilities
|
|||
Recognized in other comprehensive income
|
(777)
|
(3,073)
|
|
Recognized in profit or loss
|
(4,538)
|
(2,368)
|
|
Total deferred tax liabilities
|
(5,315)
|
(5,441)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
||||||
2011
|
2010
|
|||||
MCh$
|
MCh$
|
|||||
Assets for leasing (*)
|
105,150
|
43,832
|
||||
Assets received or awarded in lieu of payment (**)
|
||||||
Assets received in lieu of payment
|
15,619
|
20,337
|
||||
Assets awarded at judicial sale
|
10,226
|
7,798
|
||||
Provisions for assets received in lieu of payment or awarded
|
(2,628
|
) |
(2,255
|
) | ||
Subtotals
|
23,217
|
25,880
|
||||
Other assets
|
||||||
Guarantee deposits
|
149,583
|
208,512
|
||||
VAT credit
|
8,953
|
9,634
|
||||
Income tax recoverable
|
6,849
|
9,045
|
||||
Prepaid expenses
|
70,927
|
81,348
|
||||
Higher value paid on purchase of mortgage finance bonds issued by Bank
|
-
|
436
|
||||
Assets recovered from leasing for sale
|
2,693
|
2,347
|
||||
Pension plan assets (Note 38)
|
3,348
|
4,217
|
||||
Accounts and notes receivable
|
64,667
|
100,958
|
||||
Notes receivable through brokerage and simultaneous transactions
|
66,406
|
111,508
|
||||
Other assets
|
48,533
|
52,364
|
||||
Subtotals
|
421,959
|
580,369
|
||||
Total
|
550,326
|
650,081
|
(*)
|
Assets available to be granted under financial leasing agreements.
|
(**)
|
Assets received in lieu of payment are assets received as payment of customers’ past-due debts. The assets acquired must at no time exceed, in the aggregate, are assets that have been 20% of the Bank’s effective equity. These assets represent 0.81% (0.47% as of December 31, 2010) of the Bank’s effective equity.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
||||
2011
|
2010
|
|||
MCh$
|
MCh$
|
|||
Deposits and other demand liabilities
|
||||
Checking accounts
|
3,543,776
|
3,330,352
|
||
Other deposits and demand accounts
|
350,519
|
368,934
|
||
Other demand liabilities
|
519,520
|
537,148
|
||
Total
|
4,413,815
|
4,236,434
|
||
Time deposits and other time liabilities
|
||||
Time deposits
|
8,816,766
|
7,154,396
|
||
Time savings account
|
102,831
|
103,191
|
||
Other time liabilities
|
1,517
|
1,170
|
||
Total
|
8,921,114
|
7,258,757
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Loans from financial institutions and the Central Bank of Chile
|
|||
Other obligations with the Central Bank of Chile
|
810
|
1,307
|
|
Subtotals
|
810
|
1,307
|
|
Loans from foreign financial institutions
|
|||
Standard Chartered Bank, New York
|
362,041
|
253,147
|
|
Citibank N.A., New York
|
208,967
|
211,145
|
|
Wachovia Bank N.A., Miami
|
189,894
|
172,549
|
|
Bank of America
|
177,182
|
162,390
|
|
J.P. Morgan Chase Bank N.A., New York
|
127,762
|
67,763
|
|
Bank of Montreal – Toronto
|
122,014
|
103,215
|
|
Landesbank Baden - Wuerttemberg
|
119,999
|
65,732
|
|
Commerzbank A.G. - Frankfurt
|
113,704
|
87,023
|
|
Mizuho Corporate Bank
|
104,374
|
-
|
|
The Toronto Dominion Bank – Toronto
|
85,994
|
77,847
|
|
Sumitomo Mitsui Banking Corporation
|
72,935
|
42,278
|
|
Banco do Brasil S.A. – London
|
67,820
|
19,278
|
|
Royal Bank of Scotland – London
|
39,122
|
25,842
|
|
Commerzbank N.A. – Miami
|
36,451
|
32,835
|
|
Intesa San Paolo SPA U.S.A.
|
33,920
|
42,191
|
|
Branch Banking and Trust Co.
|
14,926
|
-
|
|
Deutsche Bank A.G., New York
|
14,126
|
12,652
|
|
Unicrédito Italiano, New York
|
13,207
|
13,429
|
|
ING Bank N.V. Amsterdam
|
5,241
|
-
|
|
Banco Santander – Hong Kong
|
2,585
|
5,853
|
|
ABN Amor Bank N.V., Amsterdam
|
1,175
|
-
|
|
Banco de Occidente
|
750
|
-
|
|
BBVA Banco Francés S.A.
|
745
|
-
|
|
State Bank of India
|
358
|
-
|
|
U.S. Bank
|
344
|
-
|
|
Bank of China
|
326
|
-
|
|
Bank of Tokyo Mitsubischi
|
297
|
-
|
|
Banca Commerciale Italiana S.P.
|
289
|
-
|
|
Banco Santander – Madrid
|
-
|
8,447
|
|
Bayerische Landesbank
|
-
|
122,597
|
|
Banco Latinoamericano de Export. S.A. Panama
|
-
|
46,915
|
|
BHF-Bank Aktiengesellschatft
|
-
|
9,385
|
|
Other
|
2,734
|
237
|
|
Subtotals
|
1,919,282
|
1,582,750
|
|
Total
|
1,920,092
|
1,584,057
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Obligations with Central Bank of Chile
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Line of credit for renegotiation of obligations to the Central Bank of Chile
|
810
|
1,307
|
|
Total Line of credit for renegotiation of obligations to the Central Bank of Chile
|
810
|
1,307
|
b)
|
Loans from domestic financial institutions
|
c)
|
Foreign obligations
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Due within 1 year
|
1,740,254
|
1,458,479
|
|
Due after 1 years but within 2 years
|
87,102
|
110,218
|
|
Due after 2 years but within 3 years
|
91,926
|
14,053
|
|
Due after 3 years but within 4 years
|
-
|
-
|
|
Due after 5 years
|
-
|
-
|
|
Total loans from foreign financial institutions
|
1,919,282
|
1,582,750
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Other financial liabilities
|
|||
Obligations to public sector
|
100,299
|
102,541
|
|
Other domestic obligations
|
75,260
|
38,000
|
|
Foreign obligations
|
1,040
|
25,748
|
|
Subtotals
|
176,599
|
166,289
|
|
Issued debt instruments
|
|||
Mortgage finance bonds
|
160,243
|
194,134
|
|
Senior bonds
|
3,601,125
|
3,310,679
|
|
Subordinated bonds
|
861,871
|
686,075
|
|
Subtotals
|
4,623,239
|
4,190,888
|
|
Total
|
4,799,838
|
4,357,177
|
As of December 31, 2011
|
||||
Current
|
Non-current
|
Total
|
||
MCh$
|
MCh$
|
MCh$
|
||
Mortgage finance bonds
|
7,707
|
152,536
|
160,243
|
|
Senior bonds
|
749,340
|
2,851,785
|
3,601,125
|
|
Subordinated bonds
|
136,842
|
725,029
|
861,871
|
|
Issued debt instruments
|
893,889
|
3,729,350
|
4,623,239
|
|
Other financial liabilities
|
56,078
|
120,521
|
176,599
|
|
Total
|
949,967
|
3,849,871
|
4,799,838
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2010
|
||||
Current
|
Non-current
|
Total
|
||
MCh$
|
MCh$
|
MCh$
|
||
Mortgage finance bonds
|
10,751
|
183,383
|
194,134
|
|
Senior bonds
|
547,107
|
2,763,572
|
3,310,679
|
|
Subordinated bonds
|
21,692
|
664,383
|
686,075
|
|
Issued debt instruments
|
579,550
|
3,611,338
|
4,190,888
|
|
Other financial liabilities
|
44,042
|
122,247
|
166,289
|
|
Total
|
623,592
|
3,733,585
|
4,357,177
|
a)
|
Mortgage finance bonds
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Due within 1 year
|
7,707
|
10,751
|
|
Due after 1 year but within 2 years
|
7,535
|
7,171
|
|
Due after 2 years but within 3 years
|
10,333
|
8,745
|
|
Due after 3 years but within 4 years
|
21,122
|
12,286
|
|
Due after 4 years but within 5 years
|
14,010
|
26,253
|
|
Due after 5 years
|
99,536
|
128,928
|
|
Total mortgage bonds
|
160,243
|
194,134
|
b)
|
Senior bonds
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Santander bonds in UF
|
2,001,713
|
1,952,051
|
|
Santander bonds in US$
|
1,268,763
|
936,134
|
|
Santander bonds in CHF$
|
119,394
|
174,297
|
|
Santander bonds in $
|
211,255
|
248,197
|
|
Total senior bonds
|
3,601,125
|
3,310,679
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Series
|
Amount
|
Term
|
Issue rate
|
Date of issue
|
Maturity date
|
Floating rate bond
|
USD 500,000,000
|
5 years
|
Libor (3 months) + 160 bp
|
01/19/2011
|
01/19/2016
|
Floating rate bond
|
USD 135,000,000
|
6 months
|
Libor (3 months) + 80 bp
|
11/29/2011
|
05/29/2012
|
Total
|
USD 635,000,000
|
||||
E1
|
UF 896,000
|
5 years
|
3.0% per annum simple
|
02/01/2011
|
01/01/2016
|
E2
|
UF 3,048,000
|
7.5 years
|
3.5% per annum simple
|
02/01/2011
|
07/01/2018
|
E3
|
UF 1,750,000
|
8.5 years
|
3.5% per annum simple
|
02/01/2011
|
07/01/2019
|
Total
|
UF 5,694,000
|
||||
E4
|
CLP 36,900,000,000
|
5 years
|
6.75% per annum simple
|
07/01/2011
|
06/01/2016
|
Total
|
CLP 36,900,000,000
|
Series
|
Amount
|
Term
|
Issue rate
|
Date of issue
|
Maturity date
|
F6
|
UF 1,090,000
|
5 years
|
3.50% per annum simple
|
09/01/2009
|
09/01/2014
|
F7
|
UF 3,000,000
|
4.5 years
|
3.30% per annum simple
|
11/01/2009
|
05/01/2014
|
F8
|
UF 3,000,000
|
4.5 years
|
3.60% per annum simple
|
01/01/2010
|
07/01/2014
|
F9
|
UF 3,000,000
|
5 years
|
3.70% per annum simple
|
01/01/2010
|
01/01/2015
|
FA
|
UF 2,840,000
|
4 years
|
To maturity (bullet)
|
04/01/2010
|
04/01/2014
|
FB
|
UF 3,000,000
|
5 years
|
3.0% annual due
|
04/01/2010
|
04/01/2015
|
FC
|
UF 4,000,000
|
5 years
|
4.5% annual due
|
08/01/2010
|
08/01/2015
|
FD
|
UF 1,566,000
|
5 years
|
To maturity (bullet)
|
09/01/2010
|
09/01/2015
|
Total
|
UF 21,496,000
|
||||
Floating rate bond
|
USD 500,000,000
|
2 years
|
Libor (3 months) + 125 bp
|
04/15/2010
|
04/12/ 2012
|
Fixed bonds
|
USD 500,000,000
|
5 years
|
3.75% per annum simple
|
09/15/2010
|
09/15/2015
|
Floating rate bond
|
USD 200,000,000
|
1 year
|
Libor (3 months) + 100 bp
|
09/15/2010
|
09/15/2011
|
Total
|
USD 1,200,000,000
|
||||
Fixed bonds
|
CHF 250,000,000
|
5 years
|
2.25% coupon rate
|
11/16/2010
|
12/16/2015
|
Floating rate bond
|
CHF 100,000,000
|
3 years
|
Libor (3 months) + 100 bp
|
11/16/2010
|
11/16/2013
|
Total
|
CHF 350,000,000
|
||||
Bono pesos
|
CLP 247,255,000,000
|
10 years
|
6.5% coupon rate
|
09/15/2010
|
09/22/2020
|
Total
|
CLP 247,255,000,000
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Series
|
Amount
|
Term
|
Issue
rate
|
Issuance of date
|
Maturity
date
|
FD
|
UF 160,000
|
5 years
|
To maturity (bullet)
|
09/01/2010
|
09/01/2015
|
E1
|
UF 3,104,000
|
5 years
|
3.0% per annum simple
|
02/01/2011
|
02/01/2016
|
E2
|
UF 952,000
|
7.5 years
|
3.5% per annum simple
|
02/01/2011
|
07/01/2018
|
E3
|
UF 2,250,000
|
8.5 years
|
3.5% per annum simple
|
02/01/2011
|
07/01/2019
|
Total
|
UF 6,466,000
|
||||
E4
|
CLP 13,100,000,000
|
5 years
|
6.75% per annum simple
|
07/01/2011
|
06/01/2016
|
Total
|
CLP 13,100,000,000
|
|
As of December 31,
|
||
|
2011
|
2010
|
|
MCh$
|
MCh$
|
||
Due within 1 year
|
749,340
|
547,107
|
|
Due after 1 year but within 2 years
|
460,200
|
374,727
|
|
Due after 2 years but within 3 years
|
408,723
|
389,813
|
|
Due after 3 years but within 4 years
|
656,201
|
390,953
|
|
Due after 4 years but within 5 years
|
488,425
|
340,331
|
|
Due after 5 years
|
838,236
|
1,267,748
|
|
Total senior bonds
|
3,601,125
|
3,310,679
|
c)
|
Subordinated bonds
|
|
As of December 31,
|
||
|
2011
|
|
2010
|
MCh$
|
MCh$
|
||
Subordinated bonds denominated in US$
|
316,169
|
244,957
|
|
Subordinated bonds denominated in UF
|
545,702
|
441,118
|
|
Total subordinated bonds
|
861,871
|
686,075
|
Issue
|
Issuance
|
Maturity
|
||||||||
Series
|
Amount
|
Term
|
rate
|
date
|
date
|
|||||
G3
|
UF 3,000,000
|
25 years
|
3.9 % per annum simple
|
07/01/2010
|
07/01/2035
|
|||||
G5
|
UF 2,100,000
|
20 years
|
3.9 % per annum simple
|
05/01/2011
|
04/01/2031
|
|||||
Total
|
UF 5,100,000
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Issuance
|
Issuance
|
Maturity
|
||||||||
Series
|
Amount
|
Term
|
rate
|
date
|
date
|
|||||
G2
|
UF 1,950,000
|
30 years
|
4.8% per annum simple
|
06/17/2010
|
03/01/2038
|
|||||
G4
|
UF 3,000,000
|
30 years
|
3.9% annual due
|
07/01/2010
|
07/01/2040
|
|||||
Total
|
UF 4,950,000
|
|
As of December 31,
|
||
|
2011
|
2010
|
|
|
MCh$
|
MCh$
|
|
Due within 1 year
|
136,842
|
21,692
|
|
Due after 1 year but within 2 years
|
-
|
105,505
|
|
Due after 2 years but within 3 years
|
179,327
|
-
|
|
Due after 3 years but within 4 years
|
10,567
|
139,452
|
|
Due after 4 years but within 5 years
|
29,616
|
12,305
|
|
Due after 5 years
|
505,519
|
407,121
|
|
Total subordinated bonds
|
861,871
|
686,075
|
d)
|
Other financial liabilities
|
As of December 31,
|
||||
2011
|
2010
|
|||
MCh$
|
MCh$
|
|||
Non-current portion:
|
||||
Due after 1 years but within 2 years
|
29,575
|
4,606
|
||
Due after 2 years but within 3 years
|
2,866
|
3,090
|
||
Due after 3 years but within 4 years
|
3,489
|
28,786
|
||
Due after 4 years but within 5 years
|
3,095
|
3,194
|
||
Due after 5 years
|
81,496
|
82,571
|
||
Non current portion subtotals
|
120,521
|
122,247
|
||
Current portion:
|
||||
Amounts due to credit card operators
|
50,840
|
38,567
|
||
Acceptance of letters of credit
|
704
|
721
|
||
Other long-term financial obligations, short-term portion
|
4,534
|
4,754
|
||
Current portion subtotals
|
56,078
|
44,042
|
||
Total other financial liabilities
|
176,599
|
166,289
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
Demand
|
Up to 1 month
|
Between 1 and 3 months
|
Between 3 and 12 months
|
Subtotal up to 1 year
|
Between 1 and 5 years
|
More than 5 years
|
Subtotal more than 1 year
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Assets
|
|||||||||
Cash and deposits in banks
|
2,793,701
|
-
|
-
|
-
|
2,793,701
|
-
|
-
|
-
|
2,793,701
|
Cash in process of collection
|
276,454
|
-
|
-
|
-
|
276,454
|
-
|
-
|
-
|
276,454
|
Trading investments
|
-
|
27,909
|
40,608
|
272,544
|
341,061
|
44,857
|
23,845
|
68,702
|
409,763
|
Investments under resale agreements
|
-
|
12,928
|
-
|
-
|
12,928
|
-
|
-
|
-
|
12,928
|
Financial derivative contracts
|
-
|
63,090
|
167,558
|
295,674
|
526,322
|
684,260
|
391,314
|
1,075,574
|
1,601,896
|
Interbank loans (*)
|
36,785
|
50,903
|
-
|
-
|
87,688
|
-
|
-
|
-
|
87,688
|
Loans and accounts receivables from customers (**)
|
492,635
|
1,510,419
|
1,277,005
|
2,653,577
|
5,933,636
|
5,697,193
|
5,716,265
|
11,413,458
|
17,347,094
|
Available for sale investments
|
-
|
607,472
|
190,642
|
180,451
|
978,565
|
403,577
|
279,169
|
682,746
|
1,661,311
|
Held to maturity investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total assets
|
3,599,575
|
2,272,721
|
1,675,813
|
3,402,246
|
10,950,355
|
6,829,887
|
6,410,593
|
13,240,480
|
24,190,835
|
Liabilities
|
|||||||||
Deposits and other demand liabilities
|
4,413,815
|
-
|
-
|
-
|
4,413,815
|
-
|
-
|
-
|
4,413,815
|
Cash in process of being cleared
|
89,486
|
-
|
-
|
-
|
89,486
|
-
|
-
|
-
|
89,486
|
Obligations under repurchase agreements
|
-
|
463,083
|
78,712
|
2,586
|
544,381
|
-
|
-
|
-
|
544,381
|
Time deposits and other time liabilities
|
105,463
|
4,415,765
|
2,509,308
|
1,496,193
|
8,526,729
|
371,736
|
22,649
|
394,385
|
8,921,114
|
Financial derivative contracts
|
-
|
64,290
|
158,204
|
209,746
|
432,240
|
513,944
|
346,218
|
860,162
|
1,292,402
|
Interbank borrowings
|
194,451
|
7,750
|
470,749
|
1,068,014
|
1,740,964
|
179,128
|
-
|
179,128
|
1,920,092
|
Issued debt instruments
|
-
|
3,788
|
15
|
890,086
|
893,889
|
2,286,059
|
1,443,291
|
3,729,350
|
4,623,239
|
Other financial liabilities
|
50,840
|
761
|
980
|
3,497
|
56,078
|
39,025
|
81,496
|
120,521
|
176,599
|
Total liabilities
|
4,854,055
|
4,955,437
|
3,217,968
|
3,670,122
|
16,697,582
|
3,389,892
|
1,893,654
|
5,283,546
|
21,981,128
|
(*)
|
Interbank loans are presented in a gross basis. The amount of allowance totals MCh$ 11.
|
(**)
|
Loans and accounts receivables from customers are presented in a gross basis. The amount of allowance totals Ch$ 488,457 million.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2010
|
Demand
|
Up to 1 month
|
Between 1 and 3 months
|
Between 3 and 12 months
|
Subtotal up to 1 year
|
Between 1 and 5 years
|
More than 5 years
|
Subtotal more than 1 year
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Assets
|
|||||||||
Cash and deposits in banks
|
1,762,198
|
-
|
-
|
-
|
1,762,198
|
-
|
-
|
-
|
1,762,198
|
Cash in process of collection
|
374,368
|
-
|
-
|
-
|
374,368
|
-
|
-
|
-
|
374,368
|
Trading investments
|
-
|
26,572
|
10,918
|
188,295
|
225,785
|
150,427
|
3,458
|
153,885
|
379,670
|
Investments under resale agreements
|
-
|
170,985
|
-
|
-
|
170,985
|
-
|
-
|
-
|
170,985
|
Financial derivative contracts
|
-
|
94,417
|
109,729
|
289,492
|
493,638
|
749,688
|
381,052
|
1,130,740
|
1,624,378
|
Interbank loans (*)
|
17
|
69,709
|
-
|
-
|
69,726
|
-
|
-
|
-
|
69,726
|
Loans and accounts receivables from customers (**)
|
610,951
|
1,696,614
|
1,109,796
|
2,274,513
|
5,691,874
|
4,773,163
|
5,192,519
|
9,965,682
|
15,657,556
|
Available for sale investments
|
-
|
189,600
|
120,076
|
265,667
|
575,343
|
532,292
|
366,345
|
898,637
|
1,473,980
|
Held to maturity investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total assets
|
2,747,534
|
2,247,897
|
1,350,519
|
3,017,967
|
9,363,917
|
6,205,570
|
5,943,374
|
12,148,944
|
21,512,861
|
Liabilities
|
|||||||||
Deposits and other demand liabilities
|
4,236,434
|
-
|
-
|
-
|
4,236,434
|
-
|
-
|
-
|
4,236,434
|
Cash in process of being cleared
|
300,125
|
-
|
-
|
-
|
300,125
|
-
|
-
|
-
|
300,125
|
Obligations under repurchase agreements
|
-
|
284,020
|
9,769
|
936
|
294,725
|
-
|
-
|
-
|
294,725
|
Time deposits and other time liabilities
|
104,362
|
2,167,851
|
1,713,684
|
2,350,479
|
6,336,376
|
898,241
|
24,140
|
922,381
|
7,258,757
|
Financial derivative contracts
|
-
|
137,501
|
155,431
|
343,771
|
636,703
|
696,219
|
311,057
|
1,007,276
|
1,643,979
|
Interbank borrowings
|
830
|
29,877
|
179,361
|
1,249,718
|
1,459,786
|
124,271
|
-
|
124,271
|
1,584,057
|
Issued debt instruments
|
-
|
6,007
|
130,557
|
442,986
|
579,550
|
1,807,541
|
1,803,797
|
3,611,338
|
4,190,888
|
Other financial liabilities
|
38,567
|
1,089
|
773
|
3,613
|
44,042
|
39,677
|
82,570
|
122,247
|
166,289
|
Total liabilities
|
4,680,318
|
2,626,345
|
2,189,575
|
4,391,503
|
13,887,741
|
3,565,949
|
2,221,564
|
5,787,513
|
19,675,254
|
(*)
|
Interbank loans are presented in a gross basis. The amount of allowance totals MCh$ 54.
|
(**)
|
Loans and accounts receivables from customers are presented in a gross basis. The amount of allowance totals Ch$ 425,393 million.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
As of December 31, 2011 and 2010, the composition of the provisions item is as shown below:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Provisions for personnel salaries and expenses
|
42,974
|
36,016
|
|
Provisions for mandatory dividends
|
120,520
|
151,618
|
|
Provisions for contingent loans
|
3,489
|
5,636
|
|
Provisions for contingencies
|
20,574
|
16,151
|
|
Total
|
187,557
|
209,421
|
b)
|
Below is the activity in provisions during the 2011 and 2010 periods:
|
Provisions for
|
|||||
Personnel salaries
and expenses
|
Contingent loans
|
Contingencies
|
Mandatory dividends
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Opening balance as of January 1, 2011
|
36,016
|
5,636
|
16,151
|
151,618
|
209,421
|
Provisions established
|
35,452
|
4,767
|
22,625
|
120,520
|
183,364
|
Provisions used
|
(28,494)
|
(6,914)
|
(4,352)
|
(151,618)
|
(191,378)
|
Provisions released
|
-
|
-
|
(15,198)
|
-
|
(15,198)
|
Reclassifications
|
-
|
-
|
1,348
|
-
|
1,348
|
Balance as of December 31, 2011
|
42,974
|
3,489
|
20,574
|
120,520
|
187,557
|
Opening balance as of January 1, 2010
|
31,208
|
4,077
|
21,460
|
129,467
|
186,212
|
Provisions established
|
36,538
|
3,714
|
78,689
|
151,618
|
270,559
|
Provisions used
|
(31,730)
|
(2,155)
|
(8,833)
|
(129,467)
|
(172,185)
|
Provisions released
|
-
|
-
|
(75,165)
|
-
|
(75,165)
|
Balance as of December 31, 2010
|
36,016
|
5,636
|
16,151
|
151,618
|
209,421
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Provision for personnel salaries and expenses:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Provision for seniority compensation
|
1,510
|
1,882
|
|
Provision for stock-based employee benefits
|
1,139
|
1,016
|
|
Provision for performance bonus
|
21,788
|
17,107
|
|
Provision for vacations
|
17,196
|
14,534
|
|
Provision for other employee benefits
|
1,341
|
1,477
|
|
Total
|
42,974
|
36,016
|
d)
|
Movement in provision for seniority compensation:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Present value of obligations at the beginning of the period
|
1,882
|
312
|
|
Increase in provisions
|
1,432
|
4,017
|
|
Payments made
|
(1,804)
|
(2,447)
|
|
Prepayments
|
-
|
-
|
|
Provisions released
|
-
|
-
|
|
Other
|
-
|
-
|
|
Total
|
1,510
|
1,882
|
e)
|
Movements in provision for performance bonus:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Opening balances as of January 1
|
17,107
|
14,025
|
|
Provisions established
|
21,980
|
17,107
|
|
Provisions used
|
(17,299)
|
(14,025)
|
|
Provisions released
|
-
|
-
|
|
Other
|
-
|
-
|
|
Total
|
21,788
|
17,107
|
f)
|
Movements in provision for employee vacation:
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Opening balances as of January 1
|
14,534
|
14,053
|
|
Provisions established
|
12,040
|
7,065
|
|
Provisions used
|
(9,378)
|
(6,584)
|
|
Provisions released
|
-
|
-
|
|
Other
|
-
|
-
|
|
Total
|
17,196
|
14,534
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Accounts and notes payable
|
86,402
|
63,026
|
|
Unearned income
|
948
|
1,547
|
|
Collaterals received (threshold)
|
271,980
|
68,217
|
|
Notes payable through brokerage and simultaneous transactions
|
8,725
|
53,856
|
|
Other liabilities
|
30,922
|
74,682
|
|
Total
|
398,977
|
261,328
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Lawsuits and legal procedures
|
b)
|
Contingent loans
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Letters of credit issued
|
184,649
|
209,532
|
|
Foreign letters of credit confirmed
|
52,889
|
85,739
|
|
Guarantees
|
920,986
|
898,751
|
|
Pledges and other commercial commitments
|
147,081
|
166,550
|
|
Subtotals
|
1,305,605
|
1,360,572
|
|
Available on demand credit lines
|
4,673,525
|
4,832,359
|
|
Other irrevocable credit commitments
|
95,150
|
129,428
|
|
Total
|
6,074,280
|
6,322,359
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Third party operations
|
|||
Collections
|
212,784
|
173,219
|
|
Assets from third parties managed by the Bank and its affiliates
|
35
|
66
|
|
Subtotals
|
212,819
|
173,285
|
|
Custody of securities
|
|||
Securities held in custody
|
250,291
|
290,549
|
|
Securities held in custody deposited in other entities
|
557,493
|
611,145
|
|
Issued securities held in custody
|
10,636,123
|
9,944,224
|
|
Subtotals
|
11,443,907
|
10,845,918
|
|
Total
|
11,656,726
|
11,019,203
|
d)
|
Guarantees
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Insurance policies
|
b)
|
Contingent loans and liabilities
|
c)
|
Lawsuits
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Capital
|
Number of shares
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
Issued as of January 1
|
188,446,126,794
|
188,446,126,794
|
188,446,126,794
|
||
Issue of paid shares
|
-
|
-
|
-
|
||
Issue of outstanding shares
|
-
|
-
|
-
|
||
Stock options exercised
|
-
|
-
|
-
|
||
Issued as of December 31,
|
188,446,126,794
|
188,446,126,794
|
188,446,126,794
|
Corporate Name or Shareholder's Name
|
Shares
|
ADRs
|
Total
|
% of Equity Holding
|
Teatinos Siglo XXI Inversiones Limitada
|
59,770,481,573
|
-
|
59,770,481,573
|
31.72
|
Santander Chile Holding S.A.
|
66,822,519,695
|
-
|
66,822,519,695
|
35.46
|
J.P. Morgan Chase Bank
|
-
|
39,287,497,122
|
39,287,497,122
|
20.85
|
Inversiones Antares S.A.
|
170,363,545
|
-
|
170,363,545
|
0.09
|
Banks and stock brokers on behalf of third parties
|
10,132,511,637
|
-
|
10,132,511,637
|
5.38
|
AFP on behalf of third parties
|
5,751,493,833
|
-
|
5,751,493,833
|
3.05
|
Other minority holders
|
3,827,146,677
|
2,684,112,712
|
6,511,259,389
|
3.45
|
Total
|
188,446,126,794
|
100.00
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Corporate Name or Shareholder's Name
|
Shares
|
ADRs
|
Total
|
% of Equity Holding
|
Teatinos Siglo XXI Inversiones Limitada (*)
|
78,108,391,607
|
-
|
78,108,391,607
|
41.45
|
Santander Chile Holding S.A.
|
66,822,519,695
|
-
|
66,822,519,695
|
35.46
|
J.P. Morgan Chase Bank
|
-
|
29,892,971,334
|
29,892,971,334
|
15.86
|
Inversiones Antares S.A.
|
250,363,545
|
-
|
250,363,545
|
0.13
|
Antonio Hitschfeld Bollman
|
100,000,000
|
-
|
100,000,000
|
0.05
|
Banks and stock brokers on behalf of third parties
|
8,277,713,845
|
-
|
8,277,713,845
|
4.39
|
Other minority holders
|
3,997,968,278
|
996,198,490
|
4,994,166,768
|
2.66
|
Total
|
188,446,126,794
|
100.00
|
Corporate Name or Shareholder's Name
|
Shares
|
ADRs
|
Total
|
% of Equity Holding
|
Teatinos Siglo XXI Inversiones Limitada (*)
|
78,108,391,607
|
-
|
78,108,391,607
|
41.45
|
Santander Chile Holding S.A.
|
66,822,519,695
|
-
|
66,822,519,695
|
35.46
|
J.P. Morgan Chase Bank
|
-
|
31,775,852,329
|
31,775,852,329
|
16.86
|
Inversiones Antares S.A.
|
250,363,545
|
-
|
250,363,545
|
0.13
|
Antonio Hitschfeld Bollman
|
200,000,000
|
-
|
200,000,000
|
0.11
|
Banks and stock brokers on behalf of third parties
|
6,985,588,652
|
-
|
6,985,588,652
|
3.71
|
Other minority holders
|
4,303,410,966
|
-
|
4,303,410,966
|
2.28
|
Total
|
188,446,126,794
|
100.00
|
b)
|
Dividends
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
As of December 31, diluted and basic earnings per share were as follows:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
a) Basic earnings per share
|
|||||
Total income attributable to Bank shareholders
|
401,733
|
505,393
|
431,557
|
||
Weighted average number of outstanding shares
|
188,446,126,794
|
188,446,126,794
|
188,446,126,794
|
||
Basic earning per share
|
2.132
|
2.682
|
2.290
|
||
b) Diluted earnings per share
|
|||||
Total income attributable to Bank shareholders
|
401,733
|
505,393
|
431,557
|
||
Weighted average number of outstanding shares
|
188,446,126,794
|
188,446,126,794
|
188,446,126,794
|
||
Assumed conversion of convertible debt
|
-
|
-
|
-
|
||
Adjusted number of shares
|
188,446,126,794
|
188,446,126,794
|
188,446,126,794
|
||
Diluted earnings per share
|
2.132
|
2.682
|
2.290
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
d)
|
Other comprehensive income of available for sale investments and cash flow hedges:
|
As of December 31,
|
||||||
2011
|
2010
|
2009
|
||||
MCh$
|
MCh$
|
MCh$
|
||||
Available for sale investments
|
||||||
Balance as of January 1
|
(18,596)
|
(29,304)
|
(20,019)
|
|||
Gains (losses) on remeasuring available for sale investments, before tax
|
18,676
|
12,316
|
37,713
|
|||
Reclassification adjustments on available for sale investments, before tax
|
-
|
-
|
-
|
|||
Realized (gains) losses
|
2,963
|
(1,608)
|
(46,998)
|
|||
Subtotals
|
21,639
|
10,708
|
(9,285)
|
|||
Total other comprehensive income, before tax, available-for-sale investments
|
3,043
|
(18,596)
|
(29,304)
|
|||
Cash flow hedges
|
||||||
Balance as of January 1
|
11,958
|
(3,162)
|
10,873
|
|||
Gains (losses) on remeasuring cash flow hedges, before tax
|
(12,031)
|
15,120
|
(14,035)
|
|||
Reclassification adjustments on cash flow hedges, before tax
|
467
|
-
|
-
|
|||
Amounts removed from equity and included in carrying amount of non financial asset (liability) whose acquisition or incurrence was hedged as a highly probable transition
|
-
|
-
|
-
|
|||
Subtotals
|
(11,564)
|
15,120
|
(14,035)
|
|||
Total other comprehensive income, before tax, cash flow hedges
|
394
|
11,958
|
(3,162)
|
|||
Other comprehensive income, before taxes
|
3,437
|
(6,638)
|
(32,466)
|
|||
Income tax related other comprehensive income components
|
||||||
Income tax relating to available for sale investments
|
(562)
|
3,570
|
4,982
|
|||
Income tax relating to cash flow hedges
|
(72)
|
(2,324)
|
537
|
|||
Total accumulative income tax related to other comprehensive income,
|
(634)
|
1,246
|
5,519
|
|||
Other comprehensive income, net of tax
|
2,803
|
(5,392)
|
(26,947)
|
|||
Attributable to:
|
||||||
Bank shareholders
|
2,832
|
(5,180)
|
(26,804)
|
|||
Non-controlling interest
|
(29)
|
(212)
|
(143)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Type of contingent loan
|
Exposition
|
|
a) Pledges and other commercial commitments
|
100%
|
|
b) Foreign letters of credit confirmed
|
20%
|
|
c) Letters of credit issued
|
20%
|
|
d) Guarantees
|
50%
|
|
e) Interbank guarantee letters
|
100%
|
|
f) Available lines of credit
|
50%
|
|
h) Other loan commitments
|
||
- Higher Education Loans Law No. 20,027
|
15%
|
|
- Others
|
100%
|
|
h) Other contingent loans
|
100%
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Consolidated assets
|
Risk-weighted assets
|
||||||
As of December 31,
|
As of December 31,
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||||
Balance-sheet assets (net of allowances)(*)
|
|||||||
Cash and deposits in banks
|
2,793,701
|
1,762,198
|
-
|
-
|
|||
Cash in process of collection
|
276,454
|
374,368
|
45,737
|
126,083
|
|||
Trading investments
|
409,763
|
379,670
|
23,817
|
57,588
|
|||
Investments under resale agreements
|
12,928
|
170,985
|
12,928
|
98,323
|
|||
Financial derivative contracts (**)
|
1,158,023
|
1,452,068
|
807,233
|
871,872
|
|||
Interbank loans
|
87,541
|
69,672
|
17,508
|
13,934
|
|||
Loans and accounts receivable from customers
|
16,823,407
|
15,215,318
|
14,746,903
|
13,350,182
|
|||
Available for sale investments
|
1,661,311
|
1,473,980
|
99,197
|
101,875
|
|||
Investments in other companies
|
8,728
|
7,275
|
8,728
|
7,275
|
|||
Intangible assets
|
80,739
|
77,990
|
80,739
|
77,990
|
|||
Property, plant and equipment
|
153,059
|
154,985
|
153,059
|
154,985
|
|||
Current taxes
|
37,253
|
12,499
|
3,725
|
1,250
|
|||
Deferred taxes
|
147,754
|
117,964
|
14,775
|
11,796
|
|||
Other assets
|
546,470
|
640,937
|
426,822
|
474,135
|
|||
Off-balance-sheet assets
|
|||||||
Contingent loans
|
3,023,330
|
3,173,789
|
1,801,971
|
1,897,977
|
|||
Total
|
27,220,461
|
25,083,698
|
18,243,142
|
17,245,265
|
(*)
|
Figures are presented as required by local regulations.
|
(**)
|
“Financial derivative contracts” are presented at their “Credit Equivalent Risk” value as established in Chapter 12-1 of the Recopilación Actualizada de Normas – RAN – (Updated Compilation of Rules) issued by the SBIF.
|
Percentage
|
|||||||
As of December 31,
|
As of December 31,
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
MCh$
|
MCh$
|
%
|
%
|
||||
Basic capital
|
2,001,222
|
1,831,798
|
7.35
|
7.30
|
|||
Effective net equity
|
2,687,393
|
2,503,898
|
14.73
|
14.52
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Other comprehensive income
|
|||||||
As of December 31, 2011
|
Non
Controlling
|
Equity
|
Income
|
Available for sale investments
|
Deferred tax
|
Total other comprehensive income
|
Comprehensive income
|
%
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Subsidiaries
|
|||||||
Santander Agente de Valores Limitada
|
0.97
|
571
|
68
|
15
|
(3)
|
12
|
80
|
Santander S.A. Sociedad Securitizadora
|
0.36
|
3
|
-
|
-
|
-
|
-
|
-
|
Santander S.A. Corredores de Bolsa
|
49.00
|
27,378
|
4,077
|
206
|
(35)
|
171
|
4,248
|
Santander Asset Management S.A. Administradora General de Fondos
|
0.02
|
13
|
6
|
-
|
-
|
-
|
6
|
Santander Corredora de Seguros Limitada
|
0.24
|
143
|
7
|
-
|
-
|
-
|
7
|
Subtotals
|
28,108
|
4,158
|
221
|
(38)
|
183
|
4,341
|
|
Special Purpose Entities:
|
|||||||
Bansa Santander S.A.
|
100.00
|
1,029
|
(613)
|
-
|
-
|
-
|
(613)
|
Santander Gestión de Recaudación y Cobranza Limitada.
|
100.00
|
2,335
|
616
|
-
|
-
|
-
|
616
|
Multinegocios S.A.
|
100.00
|
150
|
17
|
-
|
-
|
-
|
17
|
Servicios Administrativos y Financieros Limitada.
|
100.00
|
1,083
|
426
|
-
|
-
|
-
|
426
|
Servicios de Cobranzas Fiscalex Limitada
|
100.00
|
152
|
37
|
-
|
-
|
-
|
37
|
Multiservicios de Negocios Limitada.
|
100.00
|
944
|
290
|
-
|
-
|
-
|
290
|
Subtotals
|
5,693
|
773
|
-
|
-
|
-
|
773
|
|
Total
|
33,801
|
4,931
|
221
|
(38)
|
183
|
5,114
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Other comprehensive income
|
|||||||
As of December 31, 2010
|
Non
Controlling
|
Equity
|
Income
|
Available for sale investments
|
Deferred tax
|
Total other
comprehensive
income
|
Comprehensive
income
|
%
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Subsidiaries
|
|||||||
Santander Agente de Valores Limitada
|
0.97
|
489
|
23
|
34
|
(6)
|
28
|
51
|
Santander S.A. Sociedad Securitizadora
|
0.36
|
3
|
-
|
-
|
-
|
-
|
-
|
Santander S.A. Corredores de Bolsa
|
49.00
|
26,245
|
3,727
|
(117)
|
20
|
(97)
|
3,630
|
Santander Asset Management S.A. Administradora General de Fondos
|
0.02
|
14
|
6
|
-
|
-
|
-
|
6
|
Santander Corredora de Seguros Limitada
|
0.24
|
135
|
8
|
-
|
-
|
-
|
8
|
Subtotals
|
26,886
|
3,764
|
(83)
|
14
|
(69)
|
3,695
|
|
Special Purpose Entities:
|
|||||||
Bansa Santander S.A.
|
100.00
|
1,643
|
(738)
|
-
|
-
|
-
|
(738)
|
Santander Gestión de Recaudación y Cobranza Limitada.
|
100.00
|
1,720
|
(1,650)
|
-
|
-
|
-
|
(1,650)
|
Multinegocios S.A.
|
100.00
|
133
|
37
|
-
|
-
|
-
|
37
|
Servicios Administrativos y Financieros Limitada.
|
100.00
|
657
|
322
|
-
|
-
|
-
|
322
|
Servicios de Cobranzas Fiscalex Limitada
|
100.00
|
117
|
65
|
-
|
-
|
-
|
65
|
Multiservicios de Negocios Limitada.
|
100.00
|
653
|
279
|
-
|
-
|
-
|
279
|
Subtotals
|
4,923
|
(1,685)
|
-
|
-
|
-
|
(1,685)
|
|
Total
|
31,809
|
2,079
|
(83)
|
14
|
(69)
|
2,010
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Other comprehensive income
|
|||||||
As of December 31, 2009
|
Non
Controlling
|
Equity
|
Income
|
Available for sale investments
|
Deferred tax
|
Total other comprehensive income
|
Comprehensive
income
|
%
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Subsidiaries
|
|||||||
Santander Agente de Valores Limitada (former Santander S.A. Agente de Valores)
|
0.97
|
437
|
63
|
(2)
|
-
|
(2)
|
61
|
Santander S.A. Sociedad Securitizadora
|
0.36
|
4
|
-
|
-
|
-
|
-
|
-
|
Santander S.A. Corredores de Bolsa
|
49.00
|
22,612
|
3,156
|
(123)
|
21
|
(102)
|
3,054
|
Santander Asset Management S.A. Administradora General de Fondos
|
0.02
|
13
|
5
|
-
|
-
|
-
|
5
|
Santander Corredora de Seguros Limitada (former Santander Leasing S.A.)
|
0.24
|
127
|
14
|
-
|
-
|
-
|
14
|
Subtotals
|
23,193
|
3,238
|
(125)
|
21
|
(104)
|
3,134
|
|
Special Purpose Entities:
|
|||||||
Bansa Santander S.A.
|
100.00
|
2,380
|
(412)
|
-
|
-
|
-
|
(412)
|
Santander Gestión de Recaudación y Cobranza Limitada
|
100.00
|
3,368
|
1,542
|
-
|
-
|
-
|
1,542
|
Multinegocios S.A.
|
100.00
|
96
|
28
|
-
|
-
|
-
|
28
|
Servicios Administración y Financieros Limitada
|
100.00
|
336
|
380
|
-
|
-
|
-
|
380
|
Servicios de Cobranzas Fiscalex Limitada
|
100.00
|
51
|
48
|
-
|
-
|
-
|
48
|
Multiservicios de Negocios Limitada
|
100.00
|
375
|
229
|
-
|
-
|
-
|
229
|
Subtotals
|
6,606
|
1,815
|
-
|
-
|
-
|
1,815
|
|
Total
|
29,799
|
5,053
|
(125)
|
21
|
(104)
|
4,949
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
The composition of income from interest and adjustments, not including income from hedge accounting, is as follows:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*).
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
|||
Items
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
Repurchase agreements
|
5,448
|
(2)
|
-
|
5,446
|
2,041
|
105
|
-
|
2,146
|
16,903
|
3,603
|
-
|
20,506
|
||
Interbank loans
|
3,486
|
-
|
-
|
3,486
|
934
|
-
|
-
|
934
|
262
|
-
|
-
|
262
|
||
Commercial loans
|
596,171
|
121,704
|
4,462
|
722,337
|
473,559
|
65,972
|
3,089
|
542,620
|
574,912
|
(65,137)
|
3,016
|
512,791
|
||
Mortgage loans
|
205,288
|
181,966
|
10,524
|
397,778
|
188,940
|
101,979
|
5,415
|
296,334
|
182,262
|
(88,801)
|
4,109
|
97,570
|
||
Consumer loans
|
544,671
|
3,093
|
2,977
|
550,741
|
481,860
|
1,533
|
2,899
|
486,292
|
506,896
|
(1,844)
|
3,249
|
508,301
|
||
Investment instruments
|
89,823
|
9,371
|
-
|
99,194
|
47,512
|
13,194
|
-
|
60,706
|
47,331
|
(20,646)
|
-
|
26,685
|
||
Other interest income
|
7,569
|
4,281
|
-
|
11,850
|
6,176
|
1,026
|
-
|
7,202
|
3,102
|
1,897
|
-
|
4,999
|
||
Interest income
|
1,452,456
|
320,413
|
17,963
|
1,790,832
|
1,201,022
|
183,809
|
11,403
|
1,396,234
|
1,331,668
|
(170,928)
|
10,374
|
1,171,114
|
b)
|
As indicated in Note 1 i), suspended interest is recorded in suspense accounts (off-balance-sheet accounts) until it is effectively received.
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
|||
Off balance sheet
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
Commercial loans
|
27,240
|
7,530
|
-
|
34,770
|
22,675
|
3,345
|
-
|
26,020
|
21,224
|
3,933
|
-
|
25,157
|
||
Mortgage loans
|
4,524
|
7,531
|
-
|
12,055
|
3,956
|
3,501
|
-
|
7,457
|
5,570
|
2,726
|
-
|
8,296
|
||
Consumer loans
|
19,898
|
1,233
|
-
|
21,131
|
16,282
|
498
|
-
|
16,780
|
32,788
|
(671)
|
-
|
32,117
|
||
Total
|
51,662
|
16,294
|
-
|
67,956
|
42,913
|
7,344
|
-
|
50,257
|
59,582
|
5,988
|
-
|
65,570
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
The composition of expense from interest and adjustments, excluding expense from hedge accounting, is as follows:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*)
|
Prepaid
fees
|
Total
|
Interest
|
Adjustments
(*)
|
Prepaid fees
|
Total
|
|||
Items
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
||
Demand deposits
|
(1,283)
|
(658)
|
-
|
(1,941)
|
(511)
|
(378)
|
-
|
(889)
|
(704)
|
(167)
|
-
|
(871)
|
||
Repurchase agreements
|
(8,603)
|
(184)
|
-
|
(8,787)
|
(2,164)
|
(215)
|
-
|
(2,379)
|
(15,372)
|
572
|
-
|
(14,800)
|
||
Time deposits and liabilities
|
(351,009)
|
(86,772)
|
-
|
(437,781)
|
(169,875)
|
(51,784)
|
-
|
(221,659)
|
(293,658)
|
65,909
|
-
|
(227,749)
|
||
Interbank borrowings
|
(26,006)
|
(41)
|
-
|
(26,047)
|
(29,872)
|
(33)
|
-
|
(29,905)
|
(29,030)
|
64
|
-
|
(28,966)
|
||
Issued debt instruments
|
(170,756)
|
(98,374)
|
-
|
(269,130)
|
(132,415)
|
(55,124)
|
-
|
(187,539)
|
(112,549)
|
49,801
|
-
|
(62,748)
|
||
Other financial liabilities
|
(5,019)
|
(1,485)
|
-
|
(6,504)
|
(4,941)
|
(988)
|
-
|
(5,929)
|
(3,834)
|
1,447
|
-
|
(2,387)
|
||
Other interest expense
|
(2,372)
|
(7,195)
|
-
|
(9,567)
|
(109)
|
(6,098)
|
-
|
(6,207)
|
(1,994)
|
(71)
|
-
|
(2,065)
|
||
Interest expense total
|
(565,048)
|
(194,709)
|
-
|
(759,757)
|
(339,887)
|
(114,620)
|
-
|
(454,507)
|
(457,141)
|
117,555
|
-
|
(339,586)
|
d)
|
The summary of interest and expenses for the years ended December 31, 2011, 2010 and 2009:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
Items
|
MCh$
|
MCh$
|
MCh$
|
||
Interest income
|
1,790,832
|
1,396,234
|
1,171,114
|
||
Interest expense
|
(759,757)
|
(454,507)
|
(339,586)
|
||
Interest income
|
1,031,075
|
941,727
|
831,528
|
||
Income from hedge accounting (net)
|
(58,775)
|
(2,008)
|
24,988
|
||
Total net interest income
|
972,300
|
939,719
|
856,516
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Fee and commission income
|
|||||
Fees and commissions for lines of credits and overdrafts
|
11,602
|
15,603
|
25,822
|
||
Fees and commissions for guarantees and letters of credit
|
24,388
|
22,852
|
24,558
|
||
Fees and commissions for card services
|
122,900
|
107,047
|
96,388
|
||
Fees and commissions for management of accounts
|
28,725
|
27,011
|
27,566
|
||
Fees and commissions for collections and payments
|
61,803
|
60,136
|
65,782
|
||
Fees and commissions for intermediation and management of securities
|
13,072
|
10,882
|
7,808
|
||
Fees and commissions for investments in mutual funds or others
|
37,618
|
39,952
|
30,766
|
||
Insurance brokerage fees
|
34,066
|
32,783
|
16,307
|
||
Office banking
|
11,884
|
9,435
|
8,586
|
||
Other fees earned
|
16,983
|
12,482
|
12,342
|
||
Total
|
363,041
|
338,183
|
315,925
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Fee and commission expense
|
|||||
Compensation for card operation
|
(63,375)
|
(51,148)
|
(44,718)
|
||
Fees and commissions for securities transactions
|
(2,555)
|
(1,781)
|
(1,276)
|
||
Office banking
|
(9,617)
|
(7,603)
|
(6,034)
|
||
Other fees
|
(9,658)
|
(14,069)
|
(9,767)
|
||
Total
|
(85,205)
|
(74,601)
|
(61,795)
|
||
Net fees and commissions income
|
277,836
|
263,582
|
254,130
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||||
2011
|
2010
|
2009
|
|||||
MCh$
|
MCh$
|
MCh$
|
|||||
Net income from financial operations
|
|||||||
Trading derivatives
|
116,877
|
3,598
|
(102,825)
|
||||
Trading investments
|
38,819
|
31,058
|
49,220
|
||||
Sale of loans and accounts receivables from customers
|
|||||||
Current portfolio
|
2,368
|
2,573
|
542
|
||||
Written-off portfolio
|
7,324
|
9,824
|
8,689
|
||||
Available for sale investments
|
(3,356)
|
(8,319)
|
47,335
|
||||
Other income from financial operations (*)
|
8,825
|
21
|
926
|
||||
Total
|
170,857
|
38,755
|
3,887
|
As of December 31,
|
||||||
2011
|
2010
|
2009
|
||||
MCh$
|
MCh$
|
MCh$
|
||||
Currency exchange differences
|
||||||
Net profit (loss) from currency exchange differences
|
(257,986)
|
273,997
|
401,695
|
|||
Hedging derivatives
|
177,553
|
(215,721)
|
(266,221)
|
|||
Income from adjustable assets in foreign currency
|
4,632
|
(3,176)
|
(10,138)
|
|||
Income from adjustable liabilities in foreign currency
|
(859)
|
2,133
|
37,905
|
|||
Total
|
(76,660)
|
57,233
|
163,241
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
Interbank
loans
|
Loans and accounts receivable from customers
|
Contingent
loans
|
Total
|
||
Commercial
loans
|
Mortgage
loans
|
Consumer
loans
|
||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Allowances and charge-offs
|
||||||
- Individual evaluations
|
(464)
|
(81,068)
|
-
|
-
|
(807)
|
(82,339)
|
- Group evaluations
|
-
|
(104,928)
|
(38,723)
|
(230,586)
|
(3,960)
|
(378,197)
|
Total Allowances and charge-offs
|
(464)
|
(185,996)
|
(38,723)
|
(230,586)
|
(4,767)
|
(460,536)
|
Allowances released
|
||||||
- Individual evaluations
|
507
|
41,741
|
-
|
-
|
2,818
|
45,066
|
- Group evaluations
|
-
|
26,582
|
7,645
|
25,185
|
4,096
|
63,508
|
Total released allowances
|
507
|
68,323
|
7,645
|
25,185
|
6,914
|
108,574
|
Recovery of loans previously charged off (*)
|
-
|
7,216
|
16,135
|
12,474
|
-
|
35,825
|
Net charge to income
|
43
|
(110,457)
|
(14,943)
|
(192,927)
|
2,147
|
(316,137)
|
As of December 31, 2010
|
Interbank
loans
|
Loans and accounts receivable from customers
|
Contingent
loans
|
Total
|
||
Commercial
loans
|
Mortgage
loans
|
Consumer
loans
|
||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Allowances and charge-offs
|
||||||
- Individual evaluations
|
(131)
|
(40,729)
|
-
|
-
|
(3,416)
|
(44,276)
|
- Group evaluations
|
-
|
(65,652)
|
(16,300)
|
(187,740)
|
(298)
|
(269,990)
|
Total Allowances and charge-offs
|
(131)
|
(106,381)
|
(16,300)
|
(187,740)
|
(3,714)
|
(314,266)
|
Allowances released
|
||||||
- Individual evaluations
|
119
|
10,828
|
-
|
-
|
1,936
|
12,883
|
- Group evaluations
|
-
|
8,683
|
952
|
7,135
|
219
|
16,989
|
Total released allowances
|
119
|
19,511
|
952
|
7,135
|
2,155
|
29,872
|
Recovery of loans previously charged off
|
-
|
6,994
|
1,389
|
22,096
|
-
|
30,479
|
Net charge to income
|
(12)
|
(79,876)
|
(13,959)
|
(158,509)
|
(1,559)
|
(253,915)
|
As of December 31, 2009
|
Interbank
loans
|
Loans and accounts receivables from customers
|
Contingent
loans
|
Total
|
||
Commercial
loans
|
Mortgage
loans
|
Consumer
loans
|
||||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Allowances and charge-offs
|
||||||
- Individual evaluations
|
(7)
|
(34,037)
|
-
|
-
|
(1,380)
|
(35,424)
|
- Group evaluations
|
-
|
(73,774)
|
(14,061)
|
(276,530)
|
-
|
(364,365)
|
Total allowances and charge-offs
|
(7)
|
(107,811)
|
(14,061)
|
(276,530)
|
(1,380)
|
(399,789)
|
Allowances released
|
||||||
- Individual evaluations
|
-
|
5,635
|
-
|
-
|
-
|
5,635
|
- Group evaluations
|
-
|
1,718
|
1,450
|
18,495
|
72
|
21,735
|
Total released allowances
|
-
|
7,353
|
1,450
|
18,495
|
72
|
27,370
|
Recovery of loans previously charged off
|
-
|
8,446
|
2,560
|
28,268
|
-
|
39,274
|
Net charge to income
|
(7)
|
(92,012)
|
(10,051)
|
(229,767)
|
(1,308)
|
(333,145)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Composition of personnel salaries and expenses
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Personnel salaries
|
181,515
|
157,578
|
152,695
|
||
Bonuses or gratifications
|
63,484
|
62,958
|
47,983
|
||
Stock-based benefits
|
2,261
|
2,042
|
2,371
|
||
Seniority compensation
|
8,277
|
6,275
|
3,075
|
||
Pension plans
|
1,207
|
941
|
100
|
||
Training expenses
|
2,397
|
1,616
|
1,452
|
||
Day care and kindergarten
|
2,367
|
1,960
|
1,582
|
||
Health funds
|
2,940
|
2,671
|
2,519
|
||
Welfare fund
|
447
|
440
|
462
|
||
Other personnel expenses
|
15,718
|
13,784
|
12,245
|
||
Total
|
280,613
|
250,265
|
224,484
|
b)
|
Stock based benefits
|
i.
|
The share price reaches the top 10 as compared to 30 other global banks.
|
ii.
|
Earnings per share reach the top 10 as compared to 30 other global banks.
|
iii.
|
The Bank has achieved its commercial and financial budget objectives in the last two years.
|
iv.
|
The executive has achieved his/her personal goals during the last two years and has continued to work at the Bank until the end of the program.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Santander’s position in the TSR Ranking
|
Maximum percentage of shares earned
|
Santander’s position in the EPS growth ranking
|
Maximum percentage of shares earned
|
1st to 6th
|
50%
|
1st to 6th
|
50%
|
7°
|
43%
|
7°
|
43%
|
8°
|
36%
|
8°
|
36%
|
9°
|
29%
|
9°
|
29%
|
10°
|
22%
|
10°
|
22%
|
11°
|
15%
|
11°
|
15%
|
12th and above
|
0%
|
12th and above
|
0%
|
Santander’s position in the TSR Ranking
|
Maximum percentage of shares earned
|
1st to 5th
|
100.0%
|
6°
|
82.5%
|
7°
|
65.0%
|
8°
|
47.5%
|
9°
|
30.0%
|
10th and above
|
0.0%
|
Santander’s position in the TSR Ranking
|
Maximum percentage of shares earned
|
1st to 5th
|
100.0%
|
6°
|
86.05%
|
7°
|
72.0%
|
8°
|
58.0%
|
9°
|
44.0%
|
10°
|
30.0%
|
11th to 17th
|
0.0%
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
PI10
|
PI11
|
PI12
|
PI13
|
PI14
|
|
Expected volatility (*)
|
15.67%
|
19.31%
|
42.36%
|
49.65%
|
51.35%
|
Historical annual dividend return
|
3.24%
|
3.47%
|
4.88%
|
6.34%
|
6.06%
|
Risk-free interest rate
|
4.49%
|
4.83%
|
2.04%
|
3.33%
|
4.07%
|
Number of shares
|
Exercise price
|
Group of employees
|
Number of individuals
|
Date of commencement of the exercise
|
Date of termination of exercise period
|
|
€
|
||||||
Options granted (Plan I10)
|
1,519,169
|
-
|
Managers
|
477
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I10)
|
70,000
|
-
|
Other non-managerial positions
|
67
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
1,057,204
|
-
|
Managers
|
322
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
71,042
|
-
|
Other non-managerial positions
|
106
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
327,882
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
36,848
|
-
|
Other non-managerial positions
|
76
|
07/01/2009
|
06/30/2012
|
Plans in force on December 31, 2009
|
3,082,145
|
1.205
|
||||
Options granted (Plan I10)
|
237,976
|
-
|
Managers
|
162
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I10)
|
9,070
|
-
|
Other non-managerial positions
|
19
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
557,772
|
-
|
Managers
|
167
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
31,171
|
-
|
Other non-managerial positions
|
47
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
564,339
|
-
|
Managers
|
170
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
43,787
|
-
|
Other non-managerial positions
|
63
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
310,902
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I13)
|
65,148
|
-
|
Other non-managerial positions
|
68
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I10) exercised
|
(1,757,145)
|
-
|
Managers
|
162
|
||
Options granted (Plan I10) exercised
|
(79,070)
|
-
|
Other non-managerial positions
|
19
|
||
Plans in force on December 31, 2010
|
3,066,095
|
|||||
Options granted (Plan I11)
|
315,716
|
-
|
Managers
|
174
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I11)
|
16,868
|
-
|
Other non-managerial positions
|
47
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
591,686
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I12)
|
79,631
|
-
|
Other non-managerial positions
|
77
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
650,474
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I13)
|
136,303
|
-
|
Other non-managerial positions
|
68
|
07/01/2010
|
06/30/2013
|
Options granted (Plan I14)
|
295,503
|
-
|
Not distributed
|
07/01/2011
|
06/30/2014
|
|
Options granted (Plan I11)
|
(1,930,691)
|
-
|
Other non-managerial positions
|
174
|
||
Options granted (Plan I11)
|
(119,082)
|
-
|
Managers
|
47
|
||
Plans in force on December 31, 2011
|
3,102,503
|
|||||
Plan I12
|
1,644,173
|
|||||
Plan I13
|
1,162,827
|
|||||
Plan I14
|
295,503
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
General administrative expenses
|
|||||
Maintenance and repair of property, plant and equipment
|
12,171
|
11,165
|
10,260
|
||
Office lease
|
22,337
|
18,875
|
17,202
|
||
Equipment lease
|
198
|
156
|
228
|
||
Insurance payments
|
2,562
|
1,740
|
1,183
|
||
Office supplies
|
6,354
|
6,693
|
6,626
|
||
Information technology and communication expenses
|
22,005
|
21,092
|
19,789
|
||
Lighting, heating, and other utilities
|
4,739
|
5,504
|
6,204
|
||
Security and valuables transport services
|
11,122
|
10,185
|
10,136
|
||
Representation and personnel travel expenses
|
4,548
|
4,024
|
3,789
|
||
Judicial and notarial expenses
|
7,203
|
6,466
|
4,470
|
||
Fees for technical reports
|
2,928
|
4,171
|
5,665
|
||
Fees for professional services
|
2,990
|
648
|
631
|
||
Other general administrative expenses
|
2,947
|
2,564
|
3,012
|
||
Outsourced services
|
|||||
Data processing
|
17,185
|
20,066
|
14,585
|
||
Other
|
21,339
|
10,017
|
9,398
|
||
Board expenses
|
|||||
Compensation to Board members
|
1,002
|
894
|
645
|
||
Board expenses
|
309
|
-
|
-
|
||
Marketing expenses
|
|||||
Publicity and advertising
|
15,262
|
14,228
|
13,847
|
||
Taxes, payroll taxes, and contributions
|
|||||
Real estate contributions
|
1,742
|
1,655
|
1,886
|
||
Patents
|
1,708
|
1,663
|
1,701
|
||
Other taxes
|
31
|
28
|
24
|
||
Contributions to SBIF
|
6,143
|
5,509
|
5,431
|
||
Total
|
166,825
|
147,343
|
136,712
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Depreciation and, amortization and impairment charges during the years 2011, 2010 and 2009 periods are detailed below:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Depreciation and amortization
|
|||||
Depreciation of property, plant and equipment
|
(20,373)
|
(22,175)
|
(21,691)
|
||
Amortizations of intangible assets
|
(33,093)
|
(27,228)
|
(24,932)
|
||
Total depreciation and amortization
|
(53,466)
|
(49,403)
|
(46,623)
|
||
Impairment of property, plant, and equipment
|
(116)
|
(4,925)
|
(75)
|
||
Total
|
(53,582)
|
(54,328)
|
(46,698)
|
b)
|
The reconciliation between the book values as of January 1, 2008 and the balances as of December 31, 2011 and 2010 is as follows:
|
Depreciation and amortization 2011
|
|||
Property, plant, and equipment
|
Intangible assets
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
|
Balances as of January 1, 2011
|
(64,376)
|
(78,329)
|
(142,705)
|
Depreciation and amortization charges in the period
|
(20,373)
|
(33,093)
|
(53,466)
|
Sales and disposals in the period
|
481
|
-
|
481
|
Others
|
38
|
(57)
|
(19)
|
Balances as of December 31, 2011
|
(84,230)
|
(111,479)
|
(195,709)
|
Depreciation and amortization 2010
|
|||
Property, plant, and equipment
|
Intangible assets
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
|
Opening Balance as of January 1, 2010
|
(42,979)
|
(51,101)
|
(94,080)
|
Depreciation and amortization charges in the period
|
(22,175)
|
(27,228)
|
(49,403)
|
Sales and disposals in the period
|
778
|
-
|
778
|
Balances as of December 31, 2010
|
(64,376)
|
(78,329)
|
(142,705)
|
Depreciation and amortization 2009
|
|||
Property, plant and equipment
|
Intangible assets
|
Total
|
|
MCh$
|
MCh$
|
MCh$
|
|
Balance as of January 1
|
(21,414)
|
(26,169)
|
(47,583)
|
Depreciation and amortization charges in the period
|
(21,691)
|
(24,932)
|
(46,623)
|
Sales and disposals in the period
|
126
|
-
|
126
|
Balance as of December 31
|
(42,979)
|
(51,101)
|
(94,080)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Other operating expenses are comprised of the following components:
|
As of December 31,
|
||||||
2011
|
2010
|
2009
|
||||
MCh$
|
MCh$
|
MCh$
|
||||
Income from assets received in lieu of payment
|
||||||
Income from sale of assets received in lieu of payment
|
5,629
|
1,556
|
29
|
|||
Recovery of charge-offs and income from assets received in lieu of payment
|
-
|
-
|
-
|
|||
Subtotals
|
5,629
|
1,556
|
29
|
|||
Income from sale of investments in other companies (*)
|
||||||
Gain on sale of investments in other companies
|
-
|
-
|
1,859
|
|||
Subtotals
|
-
|
-
|
1,859
|
|||
Other income
|
||||||
Leases
|
305
|
117
|
1,123
|
|||
Gain on sale of property, plant and equipment (**)
|
11,863
|
31,246
|
7,622
|
|||
Recovery of provisions for contingencies
|
-
|
7,040
|
14,793
|
|||
Compensation from insurance companies due to earthquake and damages
|
437
|
3,175
|
-
|
|||
Other
|
515
|
474
|
440
|
|||
Subtotals
|
13,120
|
42,052
|
23,978
|
|||
Total
|
18,749
|
43,608
|
25,866
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Other operating expenses for the years 2011, 2010 and 2009 are as follows:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Provisions and expenses for assets received in lieu of payment
|
|||||
Provisions for assets received in lieu of payment
|
10,050
|
3,594
|
3,206
|
||
Expenses for maintenance of assets received in lieu of payment
|
2,732
|
2,392
|
2,922
|
||
Subtotals
|
12,782
|
5,986
|
6,128
|
||
Credit card expenses
|
|||||
Credit card expenses
|
1,955
|
3,102
|
3,004
|
||
Credit card memberships
|
4,472
|
3,675
|
2,898
|
||
Subtotals
|
6,427
|
6,777
|
5,902
|
||
Customer services
|
8,965
|
7,756
|
8,807
|
||
Other expenses
|
|||||
Operating charge-offs
|
9,884
|
4,843
|
3,106
|
||
Life insurance and general product insurance policies
|
6,524
|
5,703
|
4,553
|
||
Additional tax on expenses paid overseas
|
3,516
|
2,174
|
1,728
|
||
Expenses for mortgage credits
|
-
|
1,868
|
814
|
||
Losses on sale of property, plant and equipment
|
-
|
21
|
24
|
||
Expenses for foreign trade operations
|
44
|
128
|
306
|
||
Income from leasing transactions
|
-
|
82
|
-
|
||
Provisions for contingencies
|
8,144
|
775
|
1,088
|
||
Expenses for earthquake damages
|
475
|
5,875
|
-
|
||
Others
|
7,447
|
3,414
|
4,908
|
||
Subtotals
|
36,034
|
24,883
|
16,527
|
||
Total
|
64,208
|
45,402
|
37,364
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
a)
|
Loans to related parties:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Companies
of the
Group
|
Associated companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Loans and accounts receivables
|
||||||||||||||
Commercial loans
|
39,708
|
663
|
2,234
|
62,512
|
36,966
|
670
|
2,478
|
14,015
|
11,331
|
914
|
2,840
|
108,372
|
||
Mortgage loans
|
-
|
-
|
15,657
|
-
|
-
|
-
|
15,157
|
-
|
-
|
-
|
12,754
|
-
|
||
Consumer loans
|
-
|
-
|
1,808
|
-
|
-
|
-
|
2,182
|
-
|
-
|
-
|
1,744
|
-
|
||
Loans and accounts receivables
|
39,708
|
663
|
19,699
|
62,512
|
36,966
|
670
|
19,817
|
14,015
|
11,331
|
914
|
17,338
|
108,372
|
||
Provision for loan losses
|
(54)
|
(1)
|
(39)
|
(23)
|
(112)
|
(1)
|
(87)
|
(14)
|
(13)
|
(1)
|
(11)
|
(298)
|
||
Net loans
|
39,654
|
662
|
19,660
|
62,489
|
36,854
|
669
|
19,730
|
14,001
|
11,318
|
913
|
17,327
|
108,074
|
||
Guarantees
|
25,311
|
-
|
18,244
|
1,241
|
7,641
|
-
|
18,649
|
1,359
|
4,552
|
-
|
45,550
|
596
|
||
Contingent loans
|
||||||||||||||
Personal guarantees
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
15,900
|
-
|
||
Letters of credit
|
187
|
-
|
-
|
-
|
2,964
|
-
|
-
|
-
|
1,868
|
-
|
-
|
-
|
||
Guarantees
|
12,778
|
-
|
-
|
569
|
12,307
|
-
|
-
|
84
|
134,644
|
-
|
-
|
259
|
||
Contingent loans
|
12,965
|
-
|
-
|
569
|
15,271
|
-
|
-
|
84
|
136,512
|
-
|
15,900
|
259
|
||
Provisions for contingent loans
|
(63)
|
-
|
-
|
(1)
|
(1)
|
-
|
-
|
-
|
(21)
|
-
|
-
|
-
|
||
Net contingent loans
|
12,902
|
-
|
-
|
568
|
15,270
|
-
|
-
|
84
|
136,491
|
-
|
15,900
|
259
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Companies
of the Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the Group
|
Associated
companies
|
Key
personnel
|
Other
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Balances as of January 1
|
52,237
|
670
|
19,817
|
14,099
|
147,843
|
914
|
17,339
|
108,631
|
107,815
|
51
|
14,845
|
110,099
|
||
New loans
|
40,471
|
24
|
5,260
|
62,528
|
11,954
|
256
|
6,901
|
11,600
|
176,516
|
2,268
|
24,178
|
30,220
|
||
Payments
|
(40,035)
|
(31)
|
(5,379)
|
(13,546)
|
(107,560)
|
(500)
|
(4,423)
|
(106,132)
|
(136,488)
|
(1,405)
|
(5,785)
|
(31,688)
|
||
Balances as of December 31
|
52,673
|
663
|
19,698
|
63,081
|
52,237
|
670
|
19,817
|
14,099
|
147,843
|
914
|
33,238
|
108,631
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
b)
|
Assets and liabilities with related parties:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Companies
of the
Group
|
Associated companies
|
Key personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key personnel
|
Other
|
Companies
of the
Group
|
Associated companies
|
Key
personnel
|
Other
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Assets
|
||||||||||||||
Cash and deposits in banks
|
178,567
|
-
|
-
|
-
|
34,104
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Trading investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Investments under resale agreements
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Financial derivative contracts
|
506,880
|
-
|
-
|
-
|
541,737
|
-
|
-
|
-
|
405,411
|
-
|
-
|
-
|
||
Available for sale investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Other assets
|
4,617
|
-
|
-
|
-
|
22,072
|
-
|
-
|
-
|
117,060
|
-
|
-
|
-
|
||
Liabilities
|
||||||||||||||
Deposits and other demand liabilities
|
5,057
|
4,009
|
1,425
|
16,782
|
9,905
|
6,014
|
1,311
|
4,128
|
1,503
|
6,238
|
502
|
925
|
||
Obligations under repurchase agreements
|
137,191
|
-
|
-
|
-
|
47,636
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||
Time deposits and other time liabilities
|
248,206
|
368
|
3,627
|
41,732
|
320,622
|
-
|
1,657
|
48,749
|
411,295
|
-
|
1,126
|
21,652
|
||
Financial derivative contracts
|
396,538
|
-
|
-
|
-
|
317,601
|
-
|
-
|
-
|
245,574
|
-
|
-
|
-
|
||
Issued debt instruments
|
1,683
|
-
|
-
|
-
|
9,392
|
-
|
-
|
-
|
89,258
|
-
|
-
|
-
|
||
Other financial liabilities
|
58,848
|
-
|
-
|
-
|
153,913
|
-
|
-
|
-
|
55,156
|
-
|
-
|
-
|
||
Other liabilities
|
1,339
|
-
|
-
|
-
|
2,782
|
-
|
-
|
-
|
310
|
-
|
-
|
-
|
c)
|
Income (expenses) recorded with related parties:
|
As of December 31,
|
||||||||||||||
2011
|
2010
|
2009
|
||||||||||||
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
companies
|
Key
personnel
|
Other
|
Companies
of the
Group
|
Associated
Companies
|
Key
personnel
|
Other
|
|||
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|||
Income (expense) recorded
|
||||||||||||||
Income and expenses from interests and readjustments
|
(17,892)
|
54
|
1,289
|
(3,683)
|
(10,093)
|
55
|
1,279
|
7
|
(23,344)
|
42
|
308
|
(769)
|
||
Income and expenses from fees and services
|
387
|
38
|
110
|
196
|
70,359
|
48
|
102
|
93
|
56,822
|
71
|
79
|
50
|
||
Net income from financial and foreign exchange operations(*)
|
(38,744)
|
-
|
(5)
|
(392)
|
86,457
|
-
|
(4)
|
4,098
|
129,046
|
-
|
2
|
(13,634)
|
||
Other operating revenues and expenses
|
519
|
-
|
-
|
-
|
(4,866)
|
-
|
-
|
-
|
(4,294)
|
-
|
-
|
-
|
||
Key personnel compensation and expenses
|
-
|
-
|
(33,082)
|
-
|
-
|
-
|
(29,879)
|
-
|
-
|
-
|
(28,663)
|
-
|
||
Administrative and other expenses
|
(13,303)
|
(25,509)
|
-
|
-
|
(20,738)
|
(21,777)
|
-
|
-
|
(13,107)
|
(16,666)
|
-
|
-
|
||
Total
|
(69,033)
|
(25,417)
|
(31,688)
|
(3,879)
|
121,119
|
(21,674)
|
(28,502)
|
4,198
|
145,123
|
(16,553)
|
(28,274)
|
(14,353)
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
d)
|
Payments to Board members and key management personnel:
|
As of December 31,
|
|||||
2011
|
2010
|
2009
|
|||
MCh$
|
MCh$
|
MCh$
|
|||
Personnel compensation
|
16,155
|
14,801
|
13,531
|
||
Board members compensation
|
1,311
|
894
|
645
|
||
Bonuses or gratifications
|
10,292
|
10,038
|
10,318
|
||
Compensation in stock
|
1,765
|
1,372
|
1,676
|
||
Training expenses
|
108
|
77
|
49
|
||
Seniority compensation
|
1,580
|
1,104
|
1,759
|
||
Health funds
|
272
|
242
|
242
|
||
Other personnel expenses
|
392
|
410
|
343
|
||
Pension plans
|
1,207
|
941
|
100
|
||
Total
|
33,082
|
29,879
|
28,663
|
e)
|
Composition of key personnel:
|
Position
|
No. of executives
|
||||
2011
|
2010
|
2009
|
|||
Director
|
13
|
13
|
13
|
||
Division manager
|
18
|
18
|
13
|
||
Department manager
|
88
|
82
|
83
|
||
Manager
|
62
|
68
|
58
|
||
Total key personnel
|
181
|
181
|
167
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
f)
|
Stock-based benefits:
|
Number of shares
|
Exercise
price
|
Group of employees
|
Number of individuals
|
Date of commencement of the exercise
period
|
Date of
termination
of exercise
period
|
|
€
|
||||||
Options granted (Plan I10)
|
1,519,169
|
-
|
Managers
|
477
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
1,057,204
|
-
|
Managers
|
322
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
327,882
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Plans in force as of December 31, 2009
|
2,904,255
|
-
|
||||
Options granted (Plan I10)
|
237,976
|
-
|
Managers
|
162
|
07/01/2007
|
06/30/2010
|
Options granted (Plan I11)
|
557,772
|
-
|
Managers
|
167
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
564,339
|
-
|
Managers
|
170
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
310,902
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options exercised (Plan I10)
|
(1,757,145)
|
-
|
Managers
|
162
|
-
|
-
|
Plans in force as of December 31, 2010
|
2,818,099
|
-
|
||||
Options granted (Plan I11)
|
315,716
|
-
|
Managers
|
174
|
07/01/2008
|
06/30/2011
|
Options granted (Plan I12)
|
591,686
|
-
|
Managers
|
157
|
07/01/2009
|
06/30/2012
|
Options granted (Plan I13)
|
650,474
|
-
|
Managers
|
166
|
07/01/2010
|
06/30/2013
|
Options exercised (Plan I11)
|
(1,930,692)
|
-
|
Managers
|
174
|
-
|
-
|
Plans in force as of December 31, 2011
|
2,445,283
|
-
|
||||
(Plan I12)
|
1,483,907
|
-
|
||||
(Plan I13)
|
961,376
|
-
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
|
i.
|
Aimed at Group management
|
|
ii.
|
The general requisite to apply for this benefit is that the employee must be working at the Bank at age 60.
|
|
iii.
|
The Santander Group will take on insurance (pension fund) on the employee’s behalf for which it will pay a premium contribution periodically.
|
|
iv.
|
The Santander Group will be responsible for granting the benefits directly. (Event in the event of the issuance company default ).
|
1.
|
Calculation method:
|
2.
|
Updated actuarial assumptions:
|
Post-employment plans
|
Post-employment plans
|
||
2011
|
2010
|
||
Mortality table
|
RV-2004
|
RV-2004
|
|
Disability table
|
PDT 1985
|
PDT 1985
|
|
Turnover rates
|
5.0%
|
5.0%
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Plan assets
|
5,508
|
5,170
|
|
Commitments for defined-benefit plans
|
|||
For active personnel
|
(2,160)
|
(953)
|
|
Incurred by inactive personnel
|
-
|
-
|
|
Minus:
|
|||
Unrealized actuarial (gain) losses
|
-
|
-
|
|
Balance at the period end
|
3,348
|
4,217
|
2011
|
2010
|
||
MCh$
|
MCh$
|
||
a) Fair value of plan assets
|
|||
Balance at beginning of period
|
5,170
|
4,925
|
|
Expected return of insurance contracts
|
403
|
202
|
|
Employer contributions
|
(65)
|
43
|
|
Actuarial (gain) losses
|
-
|
-
|
|
Premiums paid
|
-
|
-
|
|
Benefits paid
|
-
|
-
|
|
Fair value of plan assets at end of period
|
5,508
|
5,170
|
|
b) Present value of obligations
|
|||
Present value of obligations at beginning of the period
|
(953)
|
-
|
|
Net incorporation of Group companies
|
-
|
-
|
|
Service cost
|
(1,207)
|
(941)
|
|
Interest cost
|
-
|
-
|
|
Curtailment/settlement effect
|
-
|
-
|
|
Benefits paid
|
-
|
-
|
|
Past service cost
|
-
|
-
|
|
Actuarial (gain) losses
|
-
|
(12)
|
|
Other
|
-
|
-
|
|
Present value of obligations at end of the period
|
(2,160)
|
(953)
|
|
Net balance at the period end
|
3,348
|
4,217
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
2011
|
2010
|
||
Expected rate of return on plan’s assets
|
UF + 2.50% annual
|
UF + 2.50% annual
|
|
Expected rate of return on reimbursement rights
|
UF + 2.50% annual
|
UF + 2.50% annual
|
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Current period service cost
|
1,207
|
941
|
|
Interest cost
|
-
|
-
|
|
Expected return on plan assets
|
(403)
|
(202)
|
|
Expected return on insurance contracts linked to the Plan:
|
-
|
||
Extraordinary allocations
|
-
|
-
|
|
Actuarial (gains)/losses recorded in the period
|
-
|
12
|
|
Past service cost
|
-
|
-
|
|
Other
|
-
|
-
|
|
Total
|
804
|
751
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
|
As of December 31,
|
||||||
|
2011
|
|
2010
|
||||
|
Amount recorded
|
|
Fair value
|
|
Amount recorded
|
|
Fair value
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
|
|
|
|
|||
Assets
|
|
|
|
|
|||
Cash and deposits in banks
|
2,793,701
|
|
2,793,701
|
1,762,198
|
|
1,762,198
|
|
Cash in process of collection
|
276,454
|
276,454
|
374,368
|
374,368
|
|||
Trading investments
|
409,763
|
409,763
|
379,670
|
379,670
|
|||
Investments under resale agreements
|
12,928
|
12,928
|
170,985
|
170,985
|
|||
Financial derivative contracts
|
1,601,896
|
1,601,896
|
1,624,378
|
1,624,378
|
|||
Loans and accounts receivable from customers and interbank loans
|
16,946,314
|
18,296,667
|
15,301,835
|
17,641,581
|
|||
Available for sale investments
|
1,661,311
|
1,661,311
|
1,473,980
|
1,473,980
|
|||
|
|||||||
Liabilities
|
|||||||
Deposits and interbank borrowings
|
15,255,021
|
14,631,032
|
13,079,248
|
13,191,439
|
|||
Cash in process of being cleared
|
89,486
|
89,486
|
300,125
|
300,125
|
|||
Obligations under repurchase agreements
|
544,381
|
544,381
|
294,725
|
294,725
|
|||
Financial derivative contracts
|
1,292,402
|
1,292,402
|
1,643,979
|
1,643,979
|
|||
Issued debt instruments and other financial liabilities
|
4,799,838
|
5,238,471
|
4,357,177
|
4,598,640
|
a)
|
Cash and deposits in banks
|
b)
|
Cash in process of collection, trading instruments, available for sale investment instruments, resale agreements, and securities loans
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
c)
|
Loans and accounts receivable from customers and interbank loans
|
d)
|
Deposits
|
e)
|
Short and long term issued debt instruments
|
f)
|
Financial derivative contracts
|
|
Level 1: In quoted prices on active markets for identical assets and liabilities;
|
|
Level 2: inputs other than quoted prices included within level 1 that are observable for assets or liabilities, either directly or indirectly; and
|
|
Level 3: inputs for the asset or liability that are not based on observable market data.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
|
1) Chilean Government and Department of Treasury bonds
|
|
2) Mortgage bonds
|
|
3) Private paper
|
|
4) Deposits
|
|
5) Average Chamber Swaps (CMS)
|
|
6) FX Forward and Inflation
|
|
7) Cross Currency Swaps (CCS)
|
|
8) FX Options
|
|
9) Interest Rate Swap (IRS) FX
|
Type of financial instrument
|
Model used in valuation
|
Description
|
||
ž Caps/Floors/Swaptions
|
Black Normal Model for Cap/Floors and Swaptions
|
There is no observable input of implicit volatility.
|
||
ž UF options
|
Black – Scholes
|
There is no observable input of implicit volatility.
|
||
ž Cross currency swap with window
|
Hull-White
|
Hybrid HW model for rates and Brownian motion for FX, There is no observable input of implicit volatility.
|
||
ž Cross currency swap, Interest rate swap, Call money swap in Tasa Activa Bancaria (Active Bank Rate)(TAB),
|
Other
|
Validation obtained by using the interest curve and interpolating at flow maturities, but TAB is not a directly observable variable and is not correlated to any market input.
|
||
ž Bonds (in our case, low liquidity bonds)
|
Other
|
Measured by using similar instrument prices plus a charge/off rate by liquidity.
|
|
Fair value measurement
|
||||||
December 31,
|
2011
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
||
Trading investments
|
409,763
|
|
409,763
|
-
|
|
-
|
|
Available for sale investments
|
1,661,311
|
1,305,876
|
353,466
|
1,969
|
|||
Derivatives
|
1,601,896
|
-
|
1,520,382
|
81,514
|
|||
Total
|
3,672,970
|
1,715,639
|
1,873,848
|
83,483
|
|||
|
|||||||
Liabilities
|
|||||||
Derivatives
|
1,292,402
|
-
|
1,291,033
|
1,369
|
|||
Total
|
1,292,402
|
-
|
1,291,033
|
1,369
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Fair value measurement
|
|||||||
December 31,
|
2010
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
||
Trading investments
|
379,670
|
348,638
|
31,032
|
|
-
|
||
Available for sale investments
|
1,473,980
|
1,097,487
|
376,224
|
269
|
|||
Derivatives
|
1,624,378
|
-
|
1,520,339
|
104,039
|
|||
Total
|
3,478,028
|
1,446,125
|
1,927,595
|
104,308
|
|||
|
|||||||
Liabilities
|
|||||||
Derivatives
|
1,643,979
|
-
|
1,638,557
|
5,422
|
|||
Total
|
1,643,979
|
-
|
1,638,557
|
5,422
|
|
Assets
|
|
Liabilities
|
|
MCh$
|
|
MCh$
|
|
|
|
|
As of January 1, 2011
|
104,308
|
|
(5,422)
|
|
|
|
|
Total realized and unrealized profits (losses):
|
|
|
|
Included in statement of income, under “Net income from financial operations” item
|
(22,525)
|
|
4,053
|
Included in other comprehensive income, under “Available for sale investments” item
|
1,700
|
|
-
|
Purchases, issuances, and placements (net)
|
-
|
|
-
|
|
|
|
|
As of December 31, 2011
|
83,483
|
|
(1,369)
|
|
|
|
|
Total profits or losses included in income for 2011 that are attributable to change in unrealized profits (losses) related to assets or liabilities as of December 31, 2011
|
(20,825)
|
|
4,053
|
|
Assets
|
|
Liabilities
|
|
MCh$
|
|
MCh$
|
|
|
|
|
As of January 1, 2010
|
212,218
|
|
(468,848)
|
|
|
|
|
Total realized and unrealized profits (losses):
|
|
|
|
Included in statement of income
|
(107,884)
|
|
463,426
|
Included in other comprehensive income
|
(26)
|
|
-
|
Purchases, issuances, and placements (net)
|
-
|
|
-
|
|
|
|
|
As of December 31, 2010
|
104,308
|
|
(5,422)
|
|
|
|
|
Total profits or losses included in income for 2010 that are attributable to change in unrealized profits (losses) related to assets or liabilities as of December 31, 2010
|
(107,910)
|
|
463,426
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Market risks: these arise from holding financial instruments whose value may be affected by fluctuations in market conditions, generally including the following types of risk:
|
a.
|
Foreign exchange risk: this arises as a consequence of exchange rate fluctuations among currencies.
|
b.
|
Interest rate risk: this arises as a consequence of fluctuations in market interest rates.
|
c.
|
Price risk: this arises as a consequence of changes in market prices, either due to factors specific to the instrument itself or due to factors that affect all the instruments negotiated in the market.
|
d.
|
Inflation risk: this arises as a consequence of changes in Chile’s inflation rate, whose effect would be mainly applicable to financial instruments denominated in UFs.
|
-
|
Credit risk: this is the risk of one of the parties to a financial instrument failing to meet its contractual obligations for reasons of insolvency or inability of the individuals or legal entities in question, causing a financial loss to the other party.
|
-
|
Liquidity risk: liquidity risk is the possibility that an entity may be unable to meet its payment commitments, or that in order to meet them, it may have to raise funds on onerous terms or damage its image and reputation.
|
-
|
Operating risk: this is a risk arising from human errors, system errors, fraud or external events which may damage the Bank’s reputation, may have legal or regulatory implications, or cause financial losses.
|
-
|
evaluate risks whose magnitude might threaten the Bank’s solvency or which might potentially pose significant risks to its operations or reputation;
|
-
|
ensure that the Bank is equipped with the means, systems, structures, and resources consistent with best practices, which enable the implementation of the risk management strategy;
|
-
|
ensure the integration, control, and management of all the Bank’s risks;
|
-
|
apply homogeneous risk principles, policies and metrics throughout the Bank and its businesses;
|
-
|
develop and implement a risk management model at the Bank, in order for risk exposure to be adequately integrated into the different decision making processes;
|
-
|
identify risk concentrations and mitigation alternatives, monitor the macroeconomic and competitive environment, quantifying sensitivities and the foreseeable impact of different scenarios on risk positioning; and
|
-
|
carry out the management of structural liquidity, interest rate and exchange rate risks, as well as those arising from the Bank’s own resource base.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Formulation of credit policies, by consulting with the business units, meeting requirements of guarantees, credit evaluation, risk rating and submission of reports, documentation and legal procedures in compliance with the regulatory, legal and internal requirements of the Bank.
|
-
|
Establish structure for the authorization of approval and renewal of credit applications. The Bank structures credit risk levels by assigning concentration limits on such risk for individual borrowers, industry segments, and countries. The authorization limits are assigned to the respective officers of the business unit (commercial, consumer, PYME), in order to be permanently monitored by Management. In addition, these limits are periodically reviewed. The risk evaluation teams at the branch level regularly interact with customers, but for large-scale operations, the risk teams of the parent and even the CEC work directly with the customers in the evaluation of credit risk and preparation of the loan applications. Even Banco Santander – Spain participates in the approval process of the most important loans, such as those made to customers or economic groups with amounts of debt that exceeds US$40 million.
|
-
|
Limit concentrations of exposure to customers or counterparts, in geographic areas or industries (for accounts receivable or loans), and by issuer, credit rating, and liquidity (for investments).
|
-
|
Develop and maintain the Bank’s credit risk classifications, for the purpose of classifying risks according to the degree of exposure to financial loss that is faced by the respective financial instruments, with the aim of focusing risk management specifically on the associated risks.
|
-
|
Review and evaluate credit risk. Management’s risk divisions are largely independent of the Bank’s commercial division and evaluate all credit risks in excess of the specified limits, prior to loan approvals for customers or prior to the acquisition of specific investments. Renewals and revisions of loans are subject to similar processes.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Provide advice, orientation and specialized knowledge to the business units in order to promote the Bank’s best practices in credit risk management.
|
As of December 31,
|
||||
2011
|
2010
|
|||
Amount of exposure
|
Amount of exposure
|
|||
Note
|
MCh$
|
MCh$
|
||
Cash and deposits in banks
|
5
|
2,793,701
|
1,762,198
|
|
Cash in process of collection
|
5
|
276,454
|
374,368
|
|
Trading investments
|
6
|
409,763
|
379,670
|
|
Investments under resale agreements
|
7
|
12,928
|
170,985
|
|
Financial derivative contracts
|
8
|
1,601,896
|
1,624,378
|
|
Loans and accounts receivable from customers and interbank loans
|
9 and 10
|
16,946,314
|
15,301,835
|
|
Available for sale investments
|
12
|
1,661,311
|
1,473,980
|
|
Off-balance commitments:
|
||||
Letters of credit issued
|
24
|
184,649
|
209,532
|
|
Confirmed foreign letters of credit
|
24
|
52,889
|
85,739
|
|
Guarantees
|
24
|
920,986
|
898,751
|
|
Available credit lines
|
24
|
4,673,525
|
4,832,359
|
|
Pledges and other commercial commitments
|
24
|
147,081
|
166,550
|
|
Other irrevocable credit commitments
|
24
|
95,150
|
129,428
|
|
Total
|
29,776,647
|
27,409,773
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31,
|
||||||||
2011 |
2010
|
|||||||
Category
|
Individual
|
Percentage
|
Individual
|
Percentage
|
||||
Individualized businesses
|
MCh$
|
%
|
MCh$
|
%
|
||||
A1
|
109,771
|
0.63
|
15,531
|
0.10
|
||||
A2
|
1,401,030
|
8.04
|
1,372,410
|
8.73
|
||||
A3
|
2,371,890
|
13.60
|
1,965,638
|
12.50
|
||||
A4
|
1,555,956
|
8.92
|
1,246,939
|
7.93
|
||||
A5
|
510,164
|
2.93
|
481,883
|
3.06
|
||||
A6
|
307,875
|
1.77
|
164,078
|
1.04
|
||||
B1
|
136,783
|
0.78
|
86,100
|
0.55
|
||||
B2
|
67,467
|
0.39
|
81,624
|
0.52
|
||||
B3
|
45,330
|
0.26
|
100,301
|
0.64
|
||||
B4
|
19,680
|
0.11
|
47,955
|
0.30
|
||||
C1
|
28,888
|
0.17
|
20,300
|
0.13
|
||||
C2
|
26,896
|
0.15
|
59,169
|
0.38
|
||||
C3
|
47,494
|
0.27
|
56,430
|
0.36
|
||||
C4
|
40,879
|
0.23
|
57,153
|
0.36
|
||||
C5
|
36,163
|
0.21
|
47,900
|
0.30
|
||||
C6
|
40,600
|
0.23
|
54,921
|
0.35
|
||||
Subtotals
|
6,746,866
|
38.69
|
5,858,332
|
37.25
|
Group
|
Percentage
|
Group
|
Percentage
|
|||||
MCh$
|
%
|
MCh$
|
%
|
|||||
Commercial
|
||||||||
Normal portfolio
|
2,212,368
|
12.69
|
2,072,341
|
13.18
|
||||
Impaired loans portfolio
|
416,039
|
2.39
|
444,682
|
2.83
|
||||
Subtotals
|
2,628,407
|
15.08
|
2,517,023
|
16.01
|
||||
Mortgage
|
||||||||
Normal portfolio
|
4,915,967
|
28.20
|
4,508,491
|
28.66
|
||||
Impaired loans portfolio
|
199,696
|
1.15
|
142,646
|
0.91
|
||||
Subtotals
|
5,115,663
|
29.35
|
4,651,137
|
29.57
|
||||
Consumer
|
||||||||
Normal portfolio
|
2,522,156
|
14.46
|
2,251,771
|
14.31
|
||||
Impaired loans portfolio
|
421,690
|
2.42
|
449,019
|
2.86
|
||||
Subtotals
|
2,943,846
|
16.88
|
2,700,790
|
17.17
|
||||
Total portfolio
|
17,434,782
|
100.00
|
15,727,282
|
100.00
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
The A categories pertain to borrowers that pose minimal credit risk.
|
-
|
The B categories pertain to borrowers that pose a certain credit risk, having minimal inability to pay and a low vulnerability to defaulting on their financial obligations. This category includes borrowers whose ability to pay depends on favorable business and economic conditions. It may include those who have past-due contractual interests or principal payments but such impairment is not deemed inappropriate by the Bank, based on the level of available security interest and/or the stage of collection of the amounts owed to the Bank.
|
-
|
The C and D categories pertain to impaired loans for which the Bank determines that the borrower will not be able to raise all the principal and interest owed pursuant to the terms of the loan agreement.
|
As of December 31,
|
|||
2011
|
2010
|
||
MCh$
|
MCh$
|
||
Non-impaired financial assets:
|
|||
Properties/mortgages
|
8,285,570
|
7,571,546
|
|
Investments and others
|
716,735
|
435,397
|
|
Impaired financial assets:
|
|||
Properties/mortgages
|
622,723
|
406,442
|
|
Investments and others
|
102,906
|
239,841
|
|
Total
|
9,727,934
|
8,653,226
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
i.
|
asymmetries of up to 30 days for all currencies, up to the amount of basic capital;
|
ii.
|
asymmetries of up to 30 days for foreign currencies, up to the amount of basic capital; and
|
iii.
|
asymmetries of up to 90 days for all currencies, twice the basic capital.
|
As of December 31,
|
|||
2011
|
2010
|
||
%
|
%
|
||
30 days
|
21
|
39
|
|
30 days foreign currency
|
17
|
14
|
|
90 days
|
53
|
43
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
As of December 31, 2011
|
Demand
|
Up to
1 month
|
Between 1 and 3
months
|
Between 3 and 12 months
|
Between 1 and 5 years
|
More than 5 years
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Maturity of assets (Note 21)
|
3,599,575
|
2,272,721
|
1,675,813
|
3,402,246
|
6,829,887
|
6,410,593
|
24,190,835
|
Maturity of liabilities (Note 21)
|
(4,854,055)
|
(4,955,437)
|
(3,217,968)
|
(3,670,122)
|
(3,389,892)
|
(1,893,654)
|
(21,981,128)
|
Net maturity
|
(1,254,480)
|
(2,682,716)
|
(1,542,155)
|
(267,876)
|
3,439,995
|
4,516,939
|
2,209,707
|
Off-balance commitments:
|
|||||||
Pledges and other commercial commitments
|
(195)
|
(22,058)
|
(31,783)
|
(27,934)
|
(59,849)
|
(5,262)
|
(147,081)
|
Confirmed foreign letters of credit
|
-
|
(21,653)
|
(19,091)
|
(377)
|
(11,768)
|
-
|
(52,889)
|
Letters of credit issued
|
(28)
|
(58,637)
|
(85,747)
|
(1,552)
|
(38,685)
|
-
|
(184,649)
|
Guarantees
|
(135)
|
(77,553)
|
(120,989)
|
(314,486)
|
(383,712)
|
(24,111)
|
(920,986)
|
Net maturity, including commitments
|
(1,254,838)
|
(2,862,617)
|
(1,799,765)
|
(612,225)
|
2,945,981
|
4,487,566
|
904,102
|
As of December 31, 2010
|
Demand
|
Up to
1 month
|
Between 1 and 3
months
|
Between 3 and 12 months
|
Between 1 and 5
years
|
More than 5
years
|
Total
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
MCh$
|
|
Maturity of assets (Note 21)
|
2,747,534
|
2,247,897
|
1,350,519
|
3,017,967
|
6,205,570
|
5,943,374
|
21,512,861
|
Maturity of liabilities (Note 21)
|
(4,680,318)
|
(2,626,345)
|
(2,189,575)
|
(4,391,503)
|
(3,565,949)
|
(2,221,564)
|
(19,675,254)
|
Net maturity
|
(1,932,784)
|
(378,448)
|
(839,056)
|
(1,373,536)
|
2,639,621
|
3,721,810
|
1,837,607
|
Off-balance commitments:
|
|||||||
Pledges and other commercial commitments
|
-
|
(6,131)
|
(85,670)
|
(12,570)
|
(62,179)
|
-
|
(166,550)
|
Confirmed foreign letters of credit
|
-
|
(8,912)
|
(38,093)
|
(1,011)
|
(37,723)
|
-
|
(85,739)
|
Letters of credit issued
|
-
|
(63,368)
|
(99,828)
|
(10,779)
|
(35,537)
|
(20)
|
(209,532)
|
Guarantees
|
-
|
(53,165)
|
(98,144)
|
(248,969)
|
(465,532)
|
(32,941)
|
(898,751)
|
Net maturity, including commitments
|
(1,932,784)
|
(510,024)
|
(1,160,791)
|
(1,646,865)
|
2,038,650
|
3,688,849
|
477,035
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
trading portfolio;
|
-
|
domestic financial management portfolio;
|
-
|
foreign financial management portfolio.
|
|
i.
|
apply the “Value at Risk” (VaR) techniques to measure interest rate risk,
|
|
ii.
|
adjust the trading portfolios to market and measure the daily income and loss from commercial activities,
|
|
iii.
|
compare the real VaR with the established limits,
|
|
iv.
|
establish procedures to prevent losses in excess of predetermined limits, and
|
|
v.
|
furnish information on the trading activities to the ALCO, other members of the Bank’s management and the Global Risk Department of Santander – Spain.
|
|
i.
|
perform sensitivity simulations (as explained below) to measure interest rate risk for activities denominated in local currency and the potential loss forecasted by these simulations, and
|
|
ii.
|
provide daily reports thereon to the ALCO, other members of the Bank’s management, and the Global Risk Department of Santander - Spain.
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
Changes in market rates and prices may not be independent and identically distributed random variables, and may not have a normal distribution. In particular, the assumption of normal distribution may underestimate the probability of extreme market movements;
|
-
|
The historical data used by the Bank may not provide the best estimate of the joint distribution of changes in the risk factors in the future, and any modification of the data may be inadequate. In particular, the use of historical data may fail to capture the risk of potential extreme and adverse market fluctuations, regardless of the time period used;
|
-
|
A 1 day time horizon may not fully capture the market risk positions which cannot be liquidated or covered in a single day. It would not be possible to liquidate or cover all the positions in a single day;
|
-
|
The VaR is calculated at the close of business, but trading positions may change substantially in the course of the trading day;
|
-
|
The use of a 99% level of confidence does not take account of, or make any statement about, the losses that could occur outside of that degree of confidence; and
|
-
|
A model such as the VaR does not capture all the complex effects of the risk factors over the value of the positions or portfolios, and accordingly, it could underestimate potential losses.
|
VaR
|
2011
%
|
2010
%
|
|
Consolidated:
|
|||
High
|
11.02
|
11.18
|
|
Low
|
2.39
|
3.53
|
|
Average
|
6.07
|
7.25
|
|
Fixed-income investments:
|
|||
High
|
11.18
|
11.37
|
|
Low
|
2.54
|
3.63
|
|
Average
|
6.09
|
7.21
|
|
Variable-income investments
|
|||
High
|
0.23
|
0.18
|
|
Low
|
0.00
|
0.02
|
|
Average
|
0.07
|
0.09
|
|
Foreign currency investments
|
|||
High
|
3.87
|
3.91
|
|
Low
|
0.09
|
0.48
|
|
Average
|
0.90
|
1.68
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
-
|
The simulation of scenarios assumes that the volumes remain in the Bank’s Consolidated Statements of Financial Position and are always renewed at maturity, thereby omitting the fact that certain credit risk and prepayment considerations may affect the maturity of certain positions.
|
-
|
This model assumes an identical change along the entire length of the yield curve and takes no account of the different movements for different maturities.
|
-
|
The model takes no account of the sensitivity of volumes which results from interest rate changes.
|
-
|
The limits to losses of budgeted financial income are calculated based on the financial income foreseen for the year, which may not be actually earned, meaning that the real percentage of financial income at risk may be higher than the expected one.
|
2011
|
2010
|
||||
Effect on financial income
|
Effect on capital
|
Effect on financial income
|
Effect on capital
|
||
Financial management portfolio – local currency (MCh$)
|
|||||
Loss limit
|
22,380
|
167,530
|
37,300
|
152,300
|
|
High
|
19,823
|
107,745
|
16,849
|
126,306
|
|
Low
|
590
|
71,805
|
2,974
|
86,573
|
|
Average
|
9,053
|
93,328
|
10,317
|
109,133
|
|
Financial management portfolio – foreign currency (in millions of $US)
|
|||||
Loss limit
|
44,0
|
44,0
|
46,0
|
74,0
|
|
High
|
22,8
|
16,0
|
25,8
|
11,9
|
|
Low
|
3,0
|
1,2
|
0,4
|
0,3
|
|
Average
|
14,1
|
7,8
|
14,6
|
3,1
|
|
Financial management portfolio – consolidated (in MCh$)
|
|||||
Loss limit
|
37,300
|
167,530
|
37,300
|
152,300
|
|
High
|
21,149
|
107,845
|
20,129
|
126,309
|
|
Low
|
7,032
|
71,863
|
7,010
|
86,575
|
|
Average
|
13,004
|
93,417
|
12,993
|
109,156
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
Currency
|
Limit (US$mn)
|
|
U.S. dollars
|
200
|
|
Euros
|
75
|
|
Yen
|
30
|
|
Real
|
20
|
|
Mexican peso
|
20
|
|
Colombian peso
|
20
|
|
Other European currencies
|
20
|
|
Other Latam currencies
|
10
|
|
Other currencies
|
5
|
|
Total Limit
|
200
|
-
|
Requirements for adequate segregation of duties, including independent authorization of transactions
|
-
|
Requirements for reconciliation and supervision of transactions
|
-
|
Compliance with the applicable legal and regulatory requirements
|
-
|
Documentation of controls and procedures
|
-
|
Requirements for periodic evaluation of applicable operating risks and improvement of the controls and procedures to address the risks that are identified
|
-
|
Requirements for disclosure of operating losses and the proposed corrective measures
|
-
|
Development of contingency plans
|
-
|
Training and professional development
|
-
|
Adoption of ethical business standards
|
-
|
Reduction or mitigation of risks, including acquisition of insurance policies if they are effective
|
BANCO SANTANDER CHILE AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2011, 2010 AND 2009
|
FELIPE CONTRERAS FAJARDO
Accounting Manager
|
CLAUDIO MELANDRI HINOJOSA
Chief Executive Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have significant role in the company’s internal control over financial reporting.
|
/s/ Claudio Melandri
|
||
Name:
|
Claudio Melandri
|
|
Title:
|
Chief Executive Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have significant role in the company’s internal control over financial reporting.
|
/s/ Miguel Mata
|
||
Name:
|
Miguel Mata
|
|
Title:
|
Chief Financial Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have significant role in the company’s internal control over financial reporting.
|
/s/ Gabriel Montoya
|
||
Name:
|
Gabriel Montoya
|
|
Title:
|
Financial Controller
|
|
Exhibit 13.1
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Banco Santander Chile.
|
/s/ Claudio Melandri
|
||
Name:
|
Claudio Melandri
|
|
Title:
|
Chief Executive Officer
|
/s/ Miguel Mata
|
||
Name:
|
Miguel Mata
|
|
Title:
|
Chief Financial Officer
|
/s/ Gabriel Montoya
|
||
Name:
|
Gabriel Montoya
|
|
Title:
|
Financial Controller
|
Deloitte
Auditores y Consultores Limitada
RUT: 80.276.200-3
Av. Providencia 1760
Pisos 6, 7, 8, 9, 13 y 18
Providencia, Santiago
Chile
Fono: (56-2) 729 7000
Fax: (56-2) 374 9177
e-mail: deloittechile@deloitte.com
www.deloitte.cl
|