Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CORPORATE INFORMATION
Banco Santander Chile is a banking corporation
(limited company) operating under the laws of the Republic of Chile, headquartered at Bandera N°140, Santiago. The corporation
provides a broad range of general banking services to its customers, ranging from individuals to major corporations. Banco Santander
Chile and its subsidiaries (collectively referred to as the “Bank” or “Banco Santander Chile”) offers commercial
and consumer banking services, including (but not limited to) factoring, collection, leasing, securities and insurance brokering,
mutual and investment fund management, and investment banking.
Banco Santander Spain controls Banco Santander
Chile through its holdings in Teatinos Siglo XXI Inversiones Ltda. and Santander Chile Holding S.A., which are controlled subsidiaries
of Banco Santander Spain. As of December 31, 2018, Banco Santander Spain owns or controls directly and indirectly 99.5% of Santander
Chile Holding S.A. and 100% of Teatinos Siglo XXI Inversiones Ltda. This makes Banco Santander Spain have control over 67.18% of
the Bank’s shares.
These Consolidated Financial Statements have
been prepared in accordance with the Compendium of Accounting Standards issued by the Superintendency of Banks and Financial Institutions
(SBIF), the Chilean regulatory agency. Article 15 of the General Banking Law states that banks must apply accounting standards
established by SBIF. For those issues not covered by the SBIF, the Bank must apply generally accepted standards issued by the Colegio
de Contadores de Chile A.G (Association of Chilean Accountants), which conform with International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board (IASB). In the event that any discrepancies exist between IFRS and
accounting standards issued by the SBIF (Compendium of Accounting Standards and Instructions), the latter shall prevail.
For purposes of these financial statements
the Bank uses certain terms and conventions. References to “US$”, “U.S. dollars” and “dollars”
are to United States dollars, references to “EUR” are to European Economic Community Euro, references to “CNY”
are to Chinese Yuan, references to “JPY” are to “Japanese Yen”, references to “CHF” are to
Swiss franc, references to “Chilean pesos”, “pesos” or “Ch$” are to Chilean pesos, and references
to “UF” are to Unidades de Fomento. The UF is an inflation-indexed Chilean monetary unit with a value in Chilean pesos
that changes daily to reflect changes in the official Consumer Price Index (“CPI”) of the Instituto Nacional de Estadísticas
(the Chilean National Institute of Statistics) for the previous month.
The Notes to the Consolidated Financial Statements
contain additional information to support the figures submitted in the Consolidated Statement of Financial Position, Consolidated
Statement of Income, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated
Statement of Cash Flows for the year. These contain narrative descriptions and details of these statements in a clear, relevant,
reliable and comparable manner.
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b)
|
Basis of preparation for the Consolidated Financial
Statements
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The Consolidated Financial Statements as of
December 31, 2018 and 2017, incorporate the financial statements of the Bank entities over which the Bank has control (including
structured entities); and includes the adjustments, reclassifications and eliminations needed to comply with the accounting and
valuation criteria established by IFRS. Control is achieved when the Bank:
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I.
|
Has power over the investee (i.e., it has rights that
grant the current capacity of managing the relevant activities of the investee)
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II.
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is exposed, or has rights, to variable returns from
its involvement with the investee; and
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III.
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has the ability to use its power to affect its returns.
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The Bank reassesses whether or not it controls an investee if facts
and circumstances indicate that there are changes to one or more of the three elements of control listed above.
When the Bank has less than a majority of the
voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability
to direct the relevant activities over the investee unilaterally. The Bank considers all relevant facts and circumstances in assessing
whether or not the Bank’s voting rights in an investee are sufficient to give it power, including:
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●
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The
size of the Bank’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
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●
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The
potential voting rights held by the Bank, other vote holders or other parties;
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●
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The
rights arising from other agreements; and
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Consolidated Financial Statements December 2018 / Banco Santander Chile
10
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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●
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any
additional facts and circumstances that indicate that the Bank has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
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Consolidation of a subsidiary begins when the
Bank obtains control over the subsidiary and ceases when the Bank loses control over the subsidiary. Specifically, income and expenses
of a subsidiary acquired or disposed of during the year are included in the Consolidated Statement of Income and in the Consolidated
Financial Statement of Comprehensive Income from the date the Bank gains control until the date when the Bank ceases to control
the subsidiary.
Profit or loss and each component of other
comprehensive income are attributed to the owners of the Bank and to the non-controlling interests. Total comprehensive income
of subsidiaries is attributed to the owners of the Bank and to the non-controlling interests even if this results in the non-controlling
interests having a deficit in certain circumstances.
When necessary, adjustments are made to the
financial statements of the subsidiaries to ensure their accounting policies are consistent with the Bank’s accounting policies.
All balances and transactions between consolidated entities are eliminated.
Changes in the consolidated entities ownership
interests in subsidiaries that do not result in a loss of control over the subsidiaries are accounted for as equity transactions.
The carrying values of the Bank’s equity and the non-controlling interests’ equity are adjusted to reflect the changes
to their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted
and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Bank.
In addition, third parties’ shares in
the Bank’s consolidated equity are presented as “Non-controlling interests” in the Consolidated Statement of
Changes in Equity. Their share in the income for the year is presented as “Attributable to non-controlling interest”
in the Consolidated Statement of Income.
The following companies are considered entities controlled by the
Bank and are therefore within the scope of consolidation:
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i.
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Entities controlled by the Bank through participation
in equity
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Percent ownership share
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Place of
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December 31,
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Incorporation
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2018
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2017
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and
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Direct
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Indirect
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Total
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Direct
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Indirect
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Total
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Name of the Subsidiary
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Main Activity
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operation
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%
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%
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%
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%
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%
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%
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Santander Corredora de Seguros Limitada
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Insurance brokerage
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Santiago, Chile
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99.75
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0.01
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99.76
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99.75
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0.01
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99.76
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Santander Corredores de Bolsa Limitada
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Financial instruments brokerage
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Santiago, Chile
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50.59
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0.41
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51.00
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50.59
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0.41
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51.00
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Santander Agente de Valores Limitada (*)
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Securities brokerage
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Santiago, Chile
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99.03
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-
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99.03
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99.03
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-
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99.03
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Santander S.A. Sociedad Securitizadora
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Purchase of credits and issuance of debt instruments
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Santiago, Chile
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99.64
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|
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-
|
|
|
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99.64
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|
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99.64
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-
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99.64
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The details of non-controlling interest in all the subsidiaries
can be seen in Note 26 – Non-controlling interest (minority).
(*) On July 25, 2018, the company has stopped conducting
foreign currency purchase and sale operations, henceforth this operation is directly in the bank.
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ii.
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Entities controlled by the Bank through other considerations
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The following companies have been consolidated as of
December 31, 2018 and 2017 based on the fact that the activities relevant on them are determined by the Bank (companies complementary
to the banking sector) and therefore the Bank exercises control:
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-
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Santander
Gestión de Recaudación y Cobranza Limitada (collection services)
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-
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Bansa
Santander S.A. (management of repossessed assets and leasing of properties)
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Consolidated Financial Statements December 2018 / Banco Santander Chile
11
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
An associate is an entity over which the Bank has the ability to
exercise significant influence, but not control or joint control. This ability is usually represented by a share equal to or higher
than 20% of the voting rights of the Company and is accounted for using the equity method.
The following companies are considered “Associates”
in which the Bank accounts for its participation using the equity method:
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Place of
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Percentage of ownership share
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Incorporation
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As of December 31,
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and
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2018
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2017
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Associates
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Main activity
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operation
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%
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%
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Redbanc S.A.
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ATM services
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Santiago, Chile
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33.43
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33.43
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Transbank S.A.
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Debit and credit card services
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Santiago, Chile
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25.00
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25.00
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Centro de Compensación Automatizado S.A.
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Electronic fund transfer and compensation services
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Santiago, Chile
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33.33
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33.33
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Sociedad Interbancaria de Depósito de Valores S.A.
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Repository of publicly offered securities
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Santiago, Chile
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29.29
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29.29
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Cámara de Compensación de Pagos de Alto Valor S.A.
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Payments clearing
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Santiago, Chile
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15.00
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14.23
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Administrador Financiero del Transantiago S.A.
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Administration of boarding passes to public transportation
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Santiago, Chile
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20.00
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20.00
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Sociedad Nexus S.A.
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Credit card processor
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Santiago, Chile
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12.90
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12.90
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Servicios de Infraestructura de Mercado OTC S.A.
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Administration of the infrastructure for the financial market of derivative instruments
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Santiago, Chile
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12.48
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12.48
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During the year 2017, the entities Rabobank Chile in Liquidation
and Banco París, assigned to Banco Santander a portion of its participation in “Sociedad Operadora de la Cámara
de Compensación de pagos de Valores S.A.”, with which the Bank’s participation increased to 15.00%.
In the case of Nexus S.A. and Compensation Chamber for High-Value
Payments S.A., Banco Santander Chile has a representative in the Board of Directors of such companies, which is why the Administration
has concluded that it exercises significant influence over the same.
In the case of Market Infrastructure Services OTC S.A. The Bank
participates, through its executives, actively in the administration and in the organizational process, which is why the Administration
has concluded that it exerts significant influence about it.
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iv.
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Share or rights in other companies
|
Entities over which the Bank has no control or significant influences
are presented in this category. These holdings are shown at acquisition value (historical cost) less impairment, if any.
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c)
|
Non-controlling interest
|
Non-controlling interest represents the portion
of gains or losses and net assets which the Bank does not own, either directly or indirectly. It is presented separately in the
Consolidated Statement of Income, and separately from shareholders’ equity in the Consolidated Statement of Financial Position.
In the case of entities controlled by the Bank through other considerations,
income and equity are presented in full as non-controlling interest, since the Bank controls them, but does not have any ownership.
Operating segments with similar economic characteristics
often exhibit similar long-term financial performance. Two or more segments can be combined only if aggregation is consistent with
International Financial Reporting Standard 8 “Operating Segments” (IFRS 8) and the segments have similar economic characteristics
and are similar in each of the following respects:
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i.
|
the nature of the products and services;
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ii.
|
the nature of the production processes;
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
12
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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iii.
|
the type or class of customers that use their products
and services;
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iv.
|
the methods used to distribute their products or services;
and
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v.
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if applicable, the nature of the regulatory environment,
for example, banking, insurance, or public utilities.
|
The Bank reports separately on each operating segment that exceeds
any of the following quantitative thresholds:
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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 the operating segments.
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|
|
ii.
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the absolute amount of its reported profit or loss is equal to or greater than 10%: (i) the combined reported
profit of all the operating segments that did not report a loss; (ii) the combined reported loss of all the operating segments
that reported a loss.
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|
|
iii.
|
its assets represent 10% or more of the combined assets
of all the operating segments.
|
Operating segments that do not meet any of the quantitative threshold
may be treated as segments to be reported, in which case the information must be disclosed separately if management believes it
could be useful for the users of the Consolidated Financial Statements.
Information about other business activities of the segments not
separately reported is combined and disclosed in the Corporate Activities (“others”) category.
According to the information presented, the Bank’s segments
were selected based on an operating segment being a component of an entity that:
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i.
|
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);
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|
ii.
|
whose operating results are regularly reviewed by the entity’s
chief executive officer, who makes decisions about resources allocated to the segment and assess its performance; and
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|
iii.
|
for which discrete financial information is available.
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|
e)
|
Functional and presentation currency
|
The Bank, in accordance with IAS 21 “Effects of Variations
in Exchange Rates of the Foreign Currency”, has defined as functional and presentation currency the Chilean Peso, which is
the currency of the primary economic environment in which the Bank operates, it also obeys the currency that influences the structure
of costs and revenues. Therefore, all balances and transactions denominated in currencies other than the Chilean Peso are considered
as “Foreign currency”.
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f)
|
Foreign currency transactions
|
The Bank performs transactions in foreign currencies,
mainly the U.S. dollar. Assets and liabilities denominated in foreign currencies and held by the Bank are translated to Chilean
pesos based on the representative market rate published by Reuters at 1:30 p.m. on the month end date. The rate used was Ch$697.76
per US$1 for December, 2018 (Ch$616,85 per US$1 for December, 2017).
The amount of net foreign exchange gains and losses include recognition
of the effects that exchange rate variations have on assets and liabilities denominated in foreign currencies and the profits and
losses on foreign exchange spot and forward transactions undertaken by the Bank.
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g)
|
Definitions and classification of financial instruments
|
A “financial instrument” is any contract that gives
rise to a financial asset of an entity, and a financial liability or equity instrument of another entity.
An “equity instrument” is a legal transaction that evidences
a residual interest on the assets of an entity deducting all of its liabilities.
Consolidated Financial Statements December 2018 / Banco Santander Chile
13
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
A “financial derivative” is a financial
instrument whose value changes in response to changes with regard to an observed market variable (such as an interest rate, a foreign
exchange rate, a financial instrument’s price, or a market index, including credit ratings), whose initial investment is
very small compared with other financial instruments having a similar response to changes in market factors, and which is generally
settled at a future date.
“Hybrid financial instruments” are contracts that simultaneously include a non-derivative host
contract together with a financial derivative, known as an embedded derivative, which is not separately transferable and has the
effect that some of the cash flows of the hybrid contract vary in a way similar to a stand-alone derivative. During the year 2018
and 2017, Banco Santander did not keep implicit derivatives in its portfolio.
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ii.
|
Classification of financial assets for measurement purposes
|
Financial assets are classified into the following
specified categories: financial assets trading investments at fair value through profit or loss (FVTPL), ‘held to maturity
investments’, ‘available for sale investments’ (AFS) financial assets and ‘loans and accounts receivable
from customers’. The classification depends on the nature and purpose of the financial assets and is determined at the time
of initial recognition. Regular way purchases or sales of financial assets require delivery of the asset within the time frame
established by regulation or convention in the marketplace.
Financial assets are initially recognized at fair value plus, in
the case of financial assets that aren’t accounted for at fair value with changes in profit or loss, transaction costs that
are directly attributable to the acquisition or issue.
Effective interest method
The effective interest method is a method of
calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form
an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Income is recognized on an effective interest basis for loans and accounts receivables other than those financial
assets classified at fair value through profit or loss.
Financial assets FVTPL – (Trading investments)
Financial assets are classified as FVTPL when the financial asset
is either held for trading or it is designated as fair value through profit or loss.
A financial asset is classified as held for trading if:
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|
●
|
it
has been acquired with the purpose of selling it in the short term; or
|
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|
●
|
on
initial recognition it is part of a portfolio of identified financial instruments that the Bank manages together and has a recent
actual pattern of short-term profit-taking; or
|
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|
●
|
it
is a derivative that is not designated and effective as a hedging instrument
|
A financial asset other than a financial asset held for trading
may be designated as FVTPL upon initial recognition if:
|
|
●
|
such
designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
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|
●
|
the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed,
and its performance is evaluated on a fair value basis, in accordance with the Bank’s documented risk management or investment
strategy, and information about the grouping is provided internally on that basis; or
|
|
|
●
|
it
forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined contract to be designated
as FVTPL.
|
Financial assets FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized
in profit or loss. The net gain or loss recognized incorporates any dividend or interest earned on the financial asset and is included
in the ‘net income (expense) from financial operations’ line item.
Consolidated Financial Statements December 2018 / Banco Santander Chile
14
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Held to maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity dates that the Bank has the positive intent and ability to hold to maturity. Subsequent to initial recognition, held-to-maturity
investments are measured at amortized cost using the effective interest method less impairment.
Available for sale investments (AFS investments)
AFS investments are non-derivatives that are either designated as
AFS or are not classified as (a) loans and accounts receivable from customers, (b) held-to-maturity investments or (c) financial
assets at fair value through profit or loss (trading investments).
Financial instruments held by the Bank that are traded in an active market are classified as AFS and are stated
at fair value at the end of each reporting period. The Bank also has investments in financial instruments that are not traded in
an active market but that are also classified as AFS investments and stated at fair value at the end of each reporting period (because
the directors consider that fair value can be reliably measured). Changes in the carrying amount of AFS monetary financial assets
relating to changes in foreign currency rates, interest income calculated using the effective interest method and dividends on
AFS equity investments are recognized in profit or loss. Other changes in the carrying amount of available for sale investments
are recognized in other comprehensive income and accumulated under the heading of “Valuation Adjustment”. When the
investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investment’s
revaluation reserve is reclassified to profit or loss.
Dividends on AFS equity instruments are recognized
in profit or loss when the Bank’s right to receive the dividends is established.
The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that foreign
currency and translated as the described in f) above. The foreign exchange gains and losses that are recognized in profit or loss
are determined based on the amortized cost of the monetary asset.
Loans and accounts receivables from customers
Loans and accounts receivable from customers
are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and accounts
receivables from customers (including loans and accounts receivable from customers and owed by banks) are measured at amortized
cost using the effective interest method, less any impairment.
Interest income is recognized by applying
the effective interest rate, except for short-term receivables where discounting effects are immaterial.
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|
iii.
|
Classification of financial assets for presentation
purposes
|
For presentation purposes, the financial assets are classified by
their nature into the following line items in the Consolidated Financial Statements:
|
|
-
|
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. Amounts invested as overnight deposits are included in this item and in
the corresponding items.
|
|
|
-
|
Cash
items in process of collection: this item includes values of documents in process of transfer and balances from operations that,
as agreed, are not settled the same day, and purchase of currencies not yet received.
|
|
|
-
|
Trading
investments: this item includes financial instruments held-for-trading and investments in mutual funds which must be adjusted
to their fair value.
|
|
|
-
|
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 accounted
for as derivatives held for hedging, as shown 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.
|
|
|
●
|
Hedging
derivatives: includes the fair value of derivatives designated as being in a hedging relationship, including the embedded derivatives
separated from the hybrid financial instruments.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
15
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
|
|
-
|
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 certain other financial asset classifications listed above.
|
|
|
-
|
Loans
and accounts receivables from placements: 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 rewards incidental to the leased asset, the
transaction is presented in loans and accounts receivable from customers while the leased asset is removed from the Bank´s
financial statements.
|
|
|
-
|
Investment
instruments: are classified into two categories: held-to-maturity investments, and available-for-sale investments. The held-to-maturity
investment classification includes only those instruments for which the Bank has the ability and intent to hold to maturity. The
remaining investments are treated as available for sale.
|
|
|
iv.
|
Classification of financial liabilities for measurement
purposes
|
Financial liabilities are classified as either financial
liabilities FVTPL or other financial liabilities:
Financial liabilities FVTPL
As of December 31, 2018, and 2017, the Bank does not have financial liabilities with changes in results.
Other financial liabilities
Other financial liabilities (including loans and accounts payable) are subsequently measured at amortized
cost using the effective interest method.
|
|
v.
|
Classification of financial liabilities for presentation
purposes
|
Financial liabilities are classified by their nature into
the following items in the Consolidated Statement of Financial Position:
|
|
-
|
Deposits
and other on-demand liabilities: this 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 collection: this item includes balances from asset purchase operations that are not settled the same day,
and sale of currencies not yet delivered.
|
|
|
-
|
Obligations
under repurchase agreements: this includes the balances of sales of financial instruments under securities repurchase and loan
agreements. The Bank does not record as own portfolio instruments acquired under repurchase agreements.
|
|
|
-
|
Time
deposits and other time liabilities: this 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 includes financial derivative contracts with negative fair values, whether they are for trading or
for 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.
|
|
|
●
|
Hedging derivatives: includes the fair value of derivatives designated as being in a hedging relationship,
including the embedded derivatives separated from the hybrid financial instruments.
|
|
|
-
|
Interbank
borrowings: this includes obligations due to other domestic banks, foreign banks, or the Central Bank of Chile, other than those
reflected in certain other financial liability classifications listed above.
|
|
|
-
|
Issued
debt instruments: there are four types of instruments issued by the Bank: obligations under letters of credit, subordinated bonds,
mortgage bonds and senior bonds placed in the local and foreign market.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
16
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
|
|
-
|
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 instruments and recognition of
fair value changes
|
Generally, financial assets and liabilities
are initially recognized at fair value, which, in the absence of evidence against it, is deemed to be the transaction price. Financial
instruments, other than those measured at fair value through profit or loss, are initially recognized at fair value plus transaction
costs. Subsequently, and at the end of each reporting period, financial instruments are measured with the following criteria:
|
|
i.
|
Valuation of financial instruments
|
Financial assets are measured according to
their fair value, gross of any transaction costs that may be incurred in the course of a sale, except for credit investments and
held to maturity investments.
According to IFRS 13
Fair Value Measurement
,
“fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e.
an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. When measuring
fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability at the measurement date.
The fair value measurement assumes that the
transaction to sell the asset or transfer the liability takes place either: (a) in the principal market for the asset or liability,
or (b) in the absence of a principal market, the most advantageous market for the asset or liability. Even when there is no observable
market to provide pricing information in connection with the sale of an asset or the transfer of a liability at the measurement
date, the fair value measurement shall assume that the transaction takes place, considered from the perspective of a potential
market participant who intends to maximize value associated with the asset or liability.
When using valuation techniques, the Bank shall
maximize the use of relevant observable inputs and minimize the use of unobservable inputs as available. If an asset or a liability
measured at fair value has a bid price and an ask price, the price within the bid-ask spread that is most representative of fair
value in the circumstances shall be used to measure fair value regardless of where the input is categorized within the fair value
hierarchy (i.e. Level 1, 2 or 3). IFRS 13 establishes a fair value hierarchy that categorizes into three levels the inputs to valuation
techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active
markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Every derivative is recorded in the Consolidated
Statements of Financial Position at fair value as previously described. This value is compared to the valuation at the trade date.
If the fair value is subsequently measured positive, this is recorded as an asset, if the fair value is subsequently measured negative,
this is recorded as a liability. The fair value on the trade date is deemed, in the absence of evidence to the contrary, to be
the transaction price. The changes in the fair value of derivatives from the trade date are recorded in “Net income (expense)
from financial operations” in the Consolidated Statement of Income.
Specifically, the fair value
of financial derivatives included in the portfolios of financial assets or liabilities held for trading is deemed to be their
daily quoted price. If, for exceptional reasons, the quoted price cannot be determined on a given date, the fair value is determined
using similar methods to those used to measure over the counter (OTC) derivatives. The fair value of OTC derivatives is the sum
of the future cash flows resulting from the instrument, discounted to present value at the date of valuation (“present value”
or “theoretical close”) using valuation techniques commonly used by the financial markets: “net present value”
(NPV) and option pricing models, among other methods. Also, within the fair value of derivatives are included Credit Valuation
Adjustment (CVA) and Debit Valuation Adjustment (DVA), all with the objective that the fair value of each instrument includes
the credit risk of its counterparty and Bank´s own risk. Counterparty Credit Risk (CVA) is a valuation adjustment to derivatives
contracted in non-organized markets as a result of exposure to counterparty credit risk. The CVA is calculated considering the
potential exposure to each counterparty in future periods. Own-credit risk (DVA) is a valuation adjustment similar to the CVA
but generated by the Bank’s credit risk assumed by our counterparties. As of December 31, 2018, the CVA and DVA are Ch $
9,702 million and Ch $ 17,295 million, respectively.
Consolidated Financial Statements December 2018 / Banco Santander Chile
17
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
“Loans and accounts receivable from customers” and Held-to-maturity instrument portfolio are measured
at amortized cost using the effective interest method. Amortized cost is the acquisition cost of a financial asset or liability,
plus or minus, as appropriate, prepayments of principal and the cumulative amortization (recorded in the consolidated income statement)
of the difference between the initial cost and the maturity amount as calculated under the effective interest method. For financial
assets, amortized cost also includes any reductions for impairment or uncollectible. For loans and accounts receivable designated
as hedged items in fair value hedges, the changes in their fair value related to the risk or risks being hedged are recorded in
“Net income (expense) from financial operations”.
The “effective interest rate” is
the discount rate that exactly matches the initial amount of a financial instrument to all its estimated cash flows over its remaining
life. For fixed-rate financial instruments, the effective interest rate incorporates the contractual interest rate established
on the acquisition date. Where applicable, the fees and transaction costs that are a part of the financial return are included.
For floating-rate financial instruments, the effective interest rate matches the current rate of return until the date of the next
review of interest rates.
The amounts at which the financial assets are
recorded represent the Bank’s maximum exposure to credit risk as at the reporting date. The Bank has also received collateral
and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, equity instruments
and personal securities, assets under leasing agreements, assets acquired under repurchase agreements, securities loans and derivatives.
Financial instruments at fair value, determined
on the basis of price quotations in active markets, include government debt securities, private sector debt securities, equity
shares, short positions, and fixed-income securities issued.
In cases where price quotations cannot be observed
in available markets, the Bank’s management determines a best estimate of the price that the market would set using its own
internal models. In most cases, these models use data based on observable market parameters as significant inputs however for some
valuations of financial instruments, significant inputs are unobservable in the market. To determine a value for those instruments,
various techniques are employed to make these estimates, including the extrapolation of observable market data.
The most reliable evidence of the fair value
of a financial instrument on initial recognition usually is the transaction price, however due to lack of availability of market
information, the value of the instrument may be derived from other market transactions performed with the same or similar instruments
or may be measured by using a valuation technique in which the variables used include only observable market data, mainly interest
rates.
The main techniques used as of December 31,
2018 and 2017 by the Bank’s internal models to determine the fair value of the financial instruments are as follows:
|
|
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.
|
The fair value of the financial instruments calculated by the aforementioned
internal models considers contractual terms and observable market data, which include interest rates, credit risk, exchange rates,
quoted market price of shares and raw materials, volatility, prepayments and liquidity. The Bank’s management considers that
its valuation models are not significantly subjective, since these methodologies can be adjusted and evaluated, as appropriate,
through the internal calculation of fair value and the subsequent comparison with the related actively traded price.
Consolidated Financial Statements December 2018 / Banco Santander Chile
18
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
|
|
iii.
|
Hedging transactions
|
The Bank uses financial derivatives for the following purposes:
|
|
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).
|
All financial derivatives that are not held for hedging purposes
are accounted for as trading derivatives.
A derivative qualifies for hedge accounting if all the following
conditions are met:
|
|
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 inflation (UF), 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.
|
The changes in the value of financial instruments qualifying for
hedge accounting are recorded as follows:
|
|
a.
|
For 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 included as “Net income
(expense) from financial operations” in the Consolidated Statement of Income.
|
|
|
b.
|
For fair value hedges of interest rate risk on a portfolio
of financial instruments, gains or losses that arise in measuring hedging instruments and other gains or losses due to changes
in fair value of the underlying hedged item (attributable to the hedged risk) are recorded in the Consolidated Financial Statement
of Income under “Net income (expense) from financial operations”.
|
|
|
c.
|
For cash flow hedges, the change in fair value of
the hedging instrument is included as “Cash flow hedge” in “Other comprehensive income”, until the hedged
transaction occurs, thereafter being reclassified to the Consolidated Statement of Income, unless the hedged 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 (expense) from financial operations”.
|
If a derivative designated as a hedging instrument
no longer meets the requirements described above due to expiration, ineffectiveness or for any other reason, hedge accounting treatment
is discontinued. When “fair value hedging” is discontinued, the fair value adjustments to the carrying amount of the
hedged item arising from the hedged risk are amortized to gain or loss from that date, when applicable.
Consolidated Financial Statements December 2018 / Banco Santander Chile
19
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
When cash flow hedges are discontinued, any cumulative
gain or loss of the hedging instrument recognized under “Other comprehensive income” (from the period when the hedge
was effective) remains recorded in equity until the hedged transaction occurs, at which time it is recorded in the Consolidated
Statement of Income, unless the transaction is no longer expected to occur, in which case any cumulative gain or loss is recorded
immediately in the Consolidated Statement of Income.
|
|
iv.
|
Derivatives embedded in hybrid financial instruments
|
Derivatives embedded in other financial
instruments or in other host contracts are accounted for separately as derivatives if 1) their risks and characteristics are not
closely related to the host contracts, 2) a separate instrument with the same terms as the embedded derivative would meet the definition
of a derivative, and 3) provided that the host contracts are not classified as “Trading investments” or as other financial
assets (liabilities) at fair value through profit or loss.
|
|
v.
|
Offsetting of financial instruments
|
Financial asset and liability balances
are offset, i.e., reported in the Consolidated Statements of Financial Position at their net amount, only if there is a legally
enforceable right to offset the recorded amounts and the Bank intends either to settle them on a net basis or to realize the asset
and settle the liability simultaneously.
|
|
vi.
|
Derecognition of financial assets and liabilities
|
The accounting treatment of transfers of financial assets
is determined by the extent and the manner in which the risks and rewards associated with the transferred assets are transferred
to third parties:
|
|
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 derecognized from the Consolidated Statement 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
Financial Statement of Financial Position and continues to be measured by the same criteria as those used before the transfer.
However, the following items are recorded:
|
|
|
-
|
An
associated financial liability for an amount equal to the consideration received; this liability is subsequently measured at amortized
cost.
|
|
|
-
|
Both
the income from the transferred (but not removed) financial asset as well as any expenses incurred due to 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:
|
|
|
a.
|
If the transferor does not retain control of the transferred
financial asset: the asset is derecognized from the Consolidated Statement of Financial Position and any rights or obligations
retained or created in the transfer are recognized.
|
|
|
b.
|
If the transferor retains control of the transferred
financial asset: it continues to be recognized in the Consolidated Statement 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.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
20
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Accordingly, financial assets are
only derecognized from the Consolidated Statement of Financial Position when the rights over the cash flows they generate have
terminated or when all the inherent risks and rewards of ownership have been substantially transferred to third parties. Similarly,
financial liabilities are only derecognized from the Consolidated Financial Statement Financial Position when the obligations specified
in the contract are discharged or cancelled or the contract has matured.
|
|
i)
|
Recognizing income and expenses
|
The most significant criteria used by the Bank to recognize
its revenues and expenses are summarized as follows:
|
|
i.
|
Interest revenue, interest expense, and similar items
|
Interest revenue, expense and similar items are recorded
on an accrual basis using the effective interest method.
However, when a given operation
or transaction is past due by 90 days or more, when it originated from a refinancing or renegotiation, or when the Bank believes
that the debtor poses a high risk of default, the interest and adjustments pertaining to these transactions are not recorded directly
in the Consolidated Statement of Income unless they have been actually received.
This interest and adjustments are generally referred
to as “suspended” and are recorded in they are reported as part of the complementary information thereto and as memorandum
accounts (Note 27). This interest is recognized as income, when collected.
The resumption of interest income
recognition of previously impaired loans only occurs when such loans become current (i.e. payments were received such that the
loans are contractually past-due for less than 90 days) or they are no longer classified under the C3, C4, C5, or C6 risk categories
(for loans individually evaluated for impairment).
|
|
ii.
|
Commissions, fees, and similar items
|
Fee and commission income and expenses are
recognized in the Consolidated Interim Statement of Income using criteria stablished in IFRS 15 “Revenue from contracts with
customers”, using retrospectively with the cumulative effect recognized at the date of initial application method and therefore
has not restated the prior comparative information, which continues to be reporting under IAS 18 “Revenue recognition”.
Under IFRS 15, the Bank recognize revenue when
(or as) satisfied a performance obligations by transferring a service (i.e. an asset) to a customer; under this definition an asset
is transferred when (or as) the customer obtains control of that asset. The Bank considers the terms of the contract and its customary
business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf
of third parties.
The Bank transfers control of a good or service
over time and, therefore, satisfies a performance obligation and recognizes revenue over time, and/or the Bank satisfies the performance
obligation at a point in time.
Under IAS 18 “Revenue recognition”, fees
and commission income and expense are recognized in according to their nature. The main criteria are: Fee and commission income
and expenses on financial assets and liabilities are recognized when they are earned.
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 transaction are recognized when the single transaction is performed.
The main income arising from commissions, fees and similar
items correspond to:
|
|
-
|
Fees and commissions for lines of credits and overdrafts: includes accrued fees related to granting lines of credit and overdrafts in checking accounts.
|
|
|
-
|
Fees and commissions for guarantees and letters of credit: includes accrued fees in the period relating to granting of guarantee payment for current and contingent third party obligations.
|
|
|
-
|
Fees and commissions for card services: includes accrued and earned commissions in the period related to use of credit cards, debit cards and other cards
|
|
|
-
|
Fees and commissions for management of accounts: includes accrued commissions for the maintenance of checking, savings and other accounts
|
|
|
-
|
Fees and commissions for collections and payments: includes income arising from collections and payments services provided by the Bank.
|
|
|
-
|
Fees and commissions for intermediation and management of securities: includes income from brokerage, placements, administration and securities’ custody services.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
21
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
|
|
-
|
Fees
and commissions for insurance brokerage fees: includes income arising for insurances distribution.
|
|
|
-
|
Other fees and commissions: includes income arising from currency changes, financial advisory, cashier check
issuance, placement of financial products and online banking services.
|
The main expense arising from commissions, fees and similar items
correspond to:
|
|
-
|
Compensation for card operation: includes commission expenses for credit and debit card operations related to income commissions card services.
|
|
|
-
|
Fees and commissions for securities transactions: includes commissions expense for deposits, securities custody service and securities’ brokerage.
|
|
|
-
|
Other fees and commissions: includes mainly expenses generated from online services.
|
The Bank has incorporated disaggregated revenue disclosure and reportable
segment relationship in Note 25.
Additionally, the Bank maintains
certain loyalty programs associated to its credit cards services, for which it has deferred a percentage of the consideration
received in the statement of financial position to comply with its related performance obligation or has liquidated on a monthly
basis as far they arise.
|
|
iii.
|
Non-financial income and expenses
|
Non-financial income and expenses are recognized for accounting
purposes on an accrual basis.
|
|
iv.
|
Commissions in the formalization of loans
|
The financial commissions that arise in the formalization of loans,
fundamentally the opening or study and information commissions, are periodized and recorded in the consolidated long-term result
of the life of the loan.
A financial asset, other than that at fair value through profit
and loss, is evaluated on each consolidated financial statement filing date to determine whether objective evidence of impairment
exists.
A financial asset or group of financial assets
will be impaired if, and only if, objective evidence of impairment exists as a result of one or more events that occurred after
initial recognition of the asset (“event causing the loss”), and this event or events causing the loss have an impact
on the estimated future cash flows of a financial asset or group of financial assets.
An impairment loss relating to financial assets recorded at amortized
cost is calculated as the difference between the recorded amount of the asset and the present value of estimated future cash flows,
discounted at the financial asset’s original effective interest rate.
Individually significant financial assets are individually tested
to determine their impairment. The remaining financial assets are evaluated collectively in groups that share similar credit risk
characteristics.
All impairment losses are recorded in the consolidated statement
of income in the caption “provisions for credit risk”. Any impairment loss related to a financial asset available for
sale previously recorded in equity is transferred to income.
The reversal of an impairment loss occurs only
if it can be objectively related to an event occurring after the initial impairment loss was recorded. The reversal of an impairment
loss shall not exceed the carrying amount that would have been determined if no impairment loss has been recognized for the asset
in prior years. The reversal is recorded in income with the exception of available for sale equity financial assets, in which case
it is recorded in other comprehensive income.
|
|
ii.
|
Non-financial assets:
|
The Bank’s non-financial assets, excluding investment properties, are reviewed at the reporting date
to determine whether they show signs of impairment (i.e. the carrying amount exceeds its recoverable amount). If any such evidence
exists, the recoverable amount of the asset is estimated, in order to determine the extent of the impairment loss.
Recoverable amount is the higher of fair value
less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset for which the estimates of future cash flows have not been adjusted.
Consolidated Financial Statements December 2018 / Banco Santander Chile
22
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
If the recoverable amount of an asset is estimated to be less than the carrying amount, the carrying amount
of the asset is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
In connection with other assets, impairment
losses recorded in prior periods are assessed at each reporting date to determine whether the loss has decreased and should be
reversed. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall
not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been
recognized for the asset in prior years. Losses for goodwill impairment recognized through capital gains are not reversed.
|
|
k)
|
Property, plant, and equipment
|
This category includes the amount of buildings, land, furniture,
vehicles, computer hardware and other fixed assets owned by the consolidated entities or acquired under finance leases. Assets
are classified according to their use as follows:
|
|
i.
|
Property, plant and equipment for own use
|
Property, plant and equipment for own use includes
but is not limited to tangible assets received by the consolidated entities in full or partial satisfaction of financial assets
representing accounts receivable from third parties which are intended to be held for continuing own use and tangible assets acquired
under finance leases. These assets are presented at acquisition cost less the related accumulated depreciation and, if applicable,
any impairment losses resulting from comparing the net value of each item to the respective recoverable amount.
Depreciation is calculated using the straight-line method over the acquisition cost of assets less their residual
value, assuming that the land on which buildings and other structures stand has an indefinite life and, therefore, is not subject
to depreciation.
The Bank applies the following useful lives for the tangible assets
that comprise its assets:
|
ITEM
|
|
Useful life
(in months)
|
|
|
Land
|
|
|
-
|
|
|
Paintings and works of art
|
|
|
-
|
|
|
Carpets and curtains
|
|
|
36
|
|
|
Computers and hardware
|
|
|
36
|
|
|
Vehicles
|
|
|
36
|
|
|
IT systems and software
|
|
|
36
|
|
|
ATMs
|
|
|
60
|
|
|
Other machines and equipment
|
|
|
60
|
|
|
Office furniture
|
|
|
60
|
|
|
Telephone and communication systems
|
|
|
60
|
|
|
Security systems
|
|
|
60
|
|
|
Rights over telephone lines
|
|
|
60
|
|
|
Air conditioning systems
|
|
|
84
|
|
|
Other installations
|
|
|
120
|
|
|
Buildings
|
|
|
1,200
|
|
The consolidated entities assess at each reporting
date whether there is any indication that the carrying amount of any tangible asset exceeds its recoverable amount. If this is
the case, the carrying amount of the asset is reduced to its recoverable amount and future depreciation charges are adjusted in
accordance with the revised carrying amount and to the new remaining useful life.
The estimated useful lives of the items of
property, plant and equipment held for own use are reviewed at the end of each reporting period to detect significant changes.
If changes are detected, the useful lives of the assets are adjusted by correcting the depreciation charge to be recorded in the
Consolidated Statement of Income in future years on the basis of the new useful lives.
Maintenance expenses relating to tangible assets held for own use
are recorded as an expense in the period in which they are incurred.
|
|
ii.
|
Assets leased out under operating leases
|
The criteria used to record the acquisition cost of assets leased
out under operating leases, to calculate their depreciation and their respective estimated useful lives, and to record their impairment
losses, are the same as those for property, plant and equipment held for own use.
Consolidated Financial Statements December 2018 / Banco Santander Chile
23
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES, continued
l) Leasing
Finance leases are leases that substantially transfer
all the risks and rewards incidental to ownership of the leased asset to the lessee.
When a consolidated entity is the
lessor of an asset, the sum of the present value of the lease payments receivable from the lessee, including the exercise price
of the lessee’s purchase option at the end of the lease term, which is equivalent to one additional lease payment and so
is reasonably certain to be exercised, is recognized as lending to third parties and is therefore included under “Loans and
accounts receivable from customers” in the Consolidated Statement of Financial Position.
When a consolidated entity is a lessee,
it reports the cost of leased assets in the Consolidated Statement of Financial Position based on the nature of the leased asset,
and simultaneously records a liability for the same amount (which is the lower of the fair value of the leased asset, and the sum
of the present value of the lease payments payable to the lessor plus, if appropriate, the exercise price of the purchase option).
The depreciation policy for these assets is the same as that for property, plant and equipment for own use.
In both cases, the finance income
and finance expenses arising from these contracts are credited and debited, respectively, to “Interest income” and
“Interest expense” in the Consolidated Statement of Income so as to achieve a constant rate of return over the lease
term.
In operating leases, ownership of the leased asset and
substantially all the risks and rewards incidental thereto remain with the lessor.
When a consolidated entity is the lessor, it
reports the acquisition cost of the leased assets under “Property, plant and equipment”. The depreciation policy for
these assets is the same as that for similar items of property, plant and equipment held for own use and revenues from operating
leases is recorded on a straight-line basis under “Other operating income” in the Consolidated Statement of Income.
When a consolidated entity is the lessee, the
lease expenses, including any incentives granted by the lessor, are charged on a straight-line basis to “Other operating
expenses” in the Consolidated Statement of Income.
|
|
iii.
|
Sale and leaseback transactions
|
For sale at fair value and operating
leasebacks, the profit or loss generated is recorded at the time of sale. In the case of finance leasebacks, the profit or loss
generated is amortized over the lease term.
Factored receivables are valued at
the amount disbursed by the Bank in exchange of invoices or other commercial instruments representing the credit which the transferor
assigns to the Bank. The price difference between the amounts disbursed and the actual face value of the credits is recorded as
interest income and adjustments in the Consolidated Statement of Income using the effective interest method over the financing
period.
When the assignment of these instruments
involves no liability on the part of the assignee, the Bank assumes the risks of insolvency of the parties responsible for payment.
Intangible assets are identified as non-monetary assets (separately identifiable from other assets) without
physical substance which arise as a result of legal or contractual rights. The Bank recognizes an intangible asset, whether purchased
or self-created (at cost), when the cost of the asset can be measured reliably, and it is probable that the future economic benefits
that are attributable to the asset will flow to the Bank.
Intangible assets are recorded initially
at acquisition or production cost and are subsequently measured at cost less any accumulated amortization and any accumulated impairment
losses.
Internally developed computer software
is recorded as an intangible asset if, among other requirements (basically the Bank’s ability to use or sell it), it can
be identified and its ability to generate future economic benefits can be demonstrated. The estimated useful life for software
is 3 years.
Intangible assets are amortized on a straight-line basis
over their estimated useful life; which has been defined as 36 months.
Consolidated Financial Statements December 2018 / Banco Santander Chile
24
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, continued
Expenditure on research activities is recorded as an
expense in the year in which it is incurred and cannot be subsequently capitalized.
|
|
o)
|
Cash and cash equivalents
|
The indirect method is used to prepare the consolidated
cash flow statement, starting with the Bank’s consolidated pre-tax income and incorporating non-cash transactions, as well
as income and expenses associated with cash flows, which are classified as investing or financing activities.
The cash flow statement was prepared considering the
following definitions:
|
|
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 equity and liabilities that are not operating or investing activities.
|
|
|
p)
|
Allowances for loan losses
|
The Bank continuously evaluates the entire loan portfolio
and contingent loans, as it is established by the SBIF, to timely provide the necessary and sufficient provisions to cover expected
losses associated with the characteristics of the debtors and their loans, which determine payment behavior and recovery.
The Bank has established allowances
to cover probable losses on loans and account receivables in accordance with instructions issued by Superintendency of Banks and
Financial Institutions (SBIF) and models of credit risk rating and assessment approved by the Board’s Committee, including
the amendments introduced by Circular No. 3.573 (and its further modifications) applicable as of January 1, 2016 which establishes
a standard method for residential mortgage loans and complements and specifies instructions on provisions and loans classified
in the impaired portfolio, and subsequent amendments.
The Bank uses the following models established by the
SBIF, to evaluate its loan portfolio and credit risk:
|
|
-
|
Individual assessment - where the Bank assesses a
debtor as individually significant when their loans are significant, or when the debtor cannot be classified within a group of
financial assets with similar credit risk characteristics, due to its size, complexity or level of exposure.
|
|
|
-
|
Group assessment - a group assessment is relevant
for analyzing a large number of transactions with small individual balances due from individuals or small companies. The Bank
groups debtors with similar credit risk characteristics giving to each group a default probability and recovery rate based on
a historical analysis. The Bank has implemented standard models for mortgage loans, established in Circular No. 3.573 (modified
by Circular No. 3.584), and internal models for commercial and consumer loans.
|
|
|
I.
|
Allowances for individual assessment
|
An individual assessment of commercial debtors is necessary
according to the SBIF, in the case of companies which, due to their size, complexity or level of exposure, must be known and analyzed
in detail.
The analysis of the debtor is primarily focused on their credit quality and their risk category classification
of the debtor and of their respective contingent loans and loans These are assigned to one of the following portfolio categories:
Normal, Substandard and Impaired. The risk factors considered are industry or economic sector, owners or managers, financial situation
and payment ability, and payment behavior.
The portfolio categories and their definitions are as
follows:
|
|
i.
|
Normal Portfolio includes debtors with a payment ability
that allows them to meet their obligations and commitments. Evaluations of the current economic and financial environment do not
indicate that this will change. The classifications assigned to this portfolio are categories from A1 to A6.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
25
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
|
|
ii.
|
Substandard Portfolio includes debtors with financial difficulties
or a significant deterioration of their payment ability. There is reasonable doubt concerning the future reimbursement of the
capital and interest within the contractual terms, with limited ability to meet short-term financial obligations. The classifications
assigned to this portfolio are categories from B1 to B4.
|
|
|
iii.
|
Impaired Portfolio includes debtors and their loans where
repayment is considered remote, with a reduced or no likelihood of repayment. This portfolio includes debtors who have stopped
paying their loans or that indicate that they will stop paying, as well as those who require forced debt restructuration, reducing
the obligation or delaying the term of the capital or interest, and any other debtor who is over 90 days overdue in his payment
of interest or capital. The classifications assigned to this portfolio are categories from C1 to C6.
|
Normal and Substandard Compliance Portfolio
As part of individual assessment,
the Bank classifies debtors into the following categories, assigning them a probability of non-performance (PNP) and severity (SEV),
which result in the expected loss percentages.
|
Portfolio
|
|
Debtor’s
Category
|
|
Probability of
Non-Performance (%)
|
|
|
Severity (%)
|
|
|
Expected Loss
(%)
|
|
|
|
|
A1
|
|
|
0.04
|
|
|
|
90.0
|
|
|
|
0.03600
|
|
|
|
|
A2
|
|
|
0.10
|
|
|
|
82.5
|
|
|
|
0.08250
|
|
|
|
|
A3
|
|
|
0.25
|
|
|
|
87.5
|
|
|
|
0.21875
|
|
|
Normal portfolio
|
|
A4
|
|
|
2.00
|
|
|
|
87.5
|
|
|
|
1.75000
|
|
|
|
|
A5
|
|
|
4.75
|
|
|
|
90.0
|
|
|
|
4.27500
|
|
|
|
|
A6
|
|
|
10.00
|
|
|
|
90.0
|
|
|
|
9.00000
|
|
|
|
|
B1
|
|
|
15.00
|
|
|
|
92.5
|
|
|
|
13.87500
|
|
|
|
|
B2
|
|
|
22.00
|
|
|
|
92.5
|
|
|
|
20.35000
|
|
|
Substandard portfolio
|
|
B3
|
|
|
33.00
|
|
|
|
97.5
|
|
|
|
32.17500
|
|
|
|
|
B4
|
|
|
45.00
|
|
|
|
97.5
|
|
|
|
43.87500
|
|
The Bank first determines all credit exposures, which includes the accounting balances of loans and accounts
receivable from customers plus contingent loans, less any amount recovered through executing the financial guarantees or collateral
covering the operations. The percentages of expected loss are applied to this exposure. In the case of collateral, the Bank must
demonstrate that the value assigned reasonably reflects the value obtainable on disposal of the assets or equity instruments. When
the credit risk of the debtor is substituted for the credit quality of the collateral or guarantor, this methodology is applicable
only when the guarantor or surety is an entity qualified in a similar investment grade by a local or international company rating
agency recognized by the SBIF. Guaranteed securities cannot be deducted from the exposure amount, only financial guarantees and
collateral can be considered.
Notwithstanding the foregoing, the Bank must maintain
a minimum provision of 0.5% over loans and contingent loans in the normal portfolio.
Impaired Portfolio
The impaired portfolio includes
all loans and the entire value of contingent loans of the debtors that are over 90 days overdue on the payment of interest or principal
of any loan at the end of the month. It also includes debtors who have been granted a loan to refinance loans over 60 days overdue,
as well as debtors who have undergone forced restructuration or partial debt condonation.
The impaired portfolio excludes:
a) residential mortgage loans, with payments less than 90 days overdue; and, b) loans to finance higher education according to
Law 20.027, provided the breach conditions outlined in Circular No. 3.454 of December 10, 2008 are not fulfilled.
The provision for an impaired portfolio
is calculated by determining the expected loss rate for the exposure, adjusting for amounts recoverable through available financial
guarantees and deducting the present value of recoveries made through collection services after the related expenses.
Once the expected loss range is
determined, the related provision percentage is applied over the exposure amount, which includes loans and contingent loans related
to the debtor.
Consolidated Financial Statements December 2018 / Banco Santander Chile
26
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, continued
The allowance rates applied over
the calculated exposure are as follows:
|
Classification
|
|
Expected range of loss
|
|
Allowance
|
|
|
|
|
|
|
|
|
|
C1
|
|
Up to 3%
|
|
|
2
|
%
|
|
C2
|
|
Greater than 3% and less than 20%
|
|
|
10
|
%
|
|
C3
|
|
Greater than 20% and less than 30%
|
|
|
25
|
%
|
|
C4
|
|
Greater than 30% and less than 50%
|
|
|
40
|
%
|
|
C5
|
|
Greater than 50% and less than 80%
|
|
|
65
|
%
|
|
C6
|
|
Greater than 80%
|
|
|
90
|
%
|
Loans
are maintained in the impaired portfolio until their payment ability is normal, notwithstanding the write off of each particular
credit that meets conditions of Title II of Chapter B-2 CNC of the SBIF. Once the circumstances that led to classification in
the Impaired Portfolio have been overcome, the debtor can be removed from this portfolio once all the following conditions are
met:
|
|
i.
|
the debtor has no obligations of the debtor with the
Bank more than 30 days overdue;
|
|
|
ii.
|
the debtor has not been granted loans to pay its obligations;
|
|
|
iii.
|
at least one of the payments include the amortization of capital; Assignations for group evaluations
|
|
|
iv.
|
if the debtor has made partial loan payments in the
last six months, two payments have already been made;
|
|
|
v.
|
if the debtor must pay monthly installments for one
or more loans, four consecutive installments have been made;
|
|
|
vi.
|
the debtor does not appear to have bad debts in the
information provided by the SBIF, except for insignificant amounts.
|
|
|
II.
|
Allowances for group assessments
|
Group assessments are used to estimate allowances required
for loans with low balances related to individuals or small companies.
Group assessments require the formation
of groups of loans with similar characteristics by type of debtor and loan conditions, in order to establish both the group payment
behavior and the recoveries of their defaulted loans, using technically substantiated estimates and prudential criteria. The model
used is based on the characteristics of the debtor, payment history, outstanding loans and default among other relevant factors.
The Bank uses methodologies to establish
credit risk, based on internal models to estimate the allowances for the group-evaluated portfolio. This portfolio includes commercial
loans with debtors that are not assessed individually, mortgage and consumer loans (including installment loans, credit cards and
overdraft lines). These methods allow the Bank to independently identify the portfolio behavior and establish the provision required
to cover losses arising during the year.
The customers are classified according
to their internal and external characteristics into profiles, using a customer-portfolio model to differentiate each portfolio’s
risk in an appropriate manner. This is known as the profile allocation method.
The profile allocation method is
based on a statistical construction model that establishes a relationship through logistic regression between variables (for example
default, payment behavior outside the Bank, socio-demographic data) and a response variable which determines the client’s
risk, which in this case is over 90 days overdue. Hence, common profiles are established and assigned a Probability of Non-Performance
(PNP) and a recovery rate based on a historical analysis known as Severity (SEV).
Therefore, once the customers have
been profiled, and the loan’s profile assigned a PNP and a SEV, the exposure at default (EXP) is calculated. This exposure
includes the book value of the loans and accounts receivable from the customer, plus contingent loans, less any amount that can
be recovered by executing guarantees (for credits other than consumer loans).
Notwithstanding the above, on establishing
provisions associated with housing loans, the Bank must recognize minimum provisions according to standard methods established
by the SBIF for this type of loan. While this is considered to be a prudent minimum base, it does not relieve the Bank of its responsibility
to have its own methodologies of determining adequate provisions to protect the credit risk of the portfolio.
Consolidated Financial Statements December 2018 / Banco Santander Chile
27
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, continued
Standard method of residential mortgage loan provisions
As of January 1, 2016, and in accordance with Circular No. 3.573 issued by the SBIF, the Bank began applying
the standard method of provisions for residential mortgage loans. According to this method, the expected loss factor applicable
to residential mortgage loans will depend on the default of each loan and the relationship between the outstanding principal of
each loan and the value of the associated mortgage guarantee (Loans to Value, LTV) at the end of each month.
The allowance rates applied according to default and LTV are
the following:
|
LTV Range
|
|
Days overdue at
month end
|
|
0
|
|
|
1-29
|
|
|
30-59
|
|
|
60-89
|
|
|
Impaired
portfolio
|
|
|
|
|
PNP(%)
|
|
|
1.0916
|
|
|
|
21.3407
|
|
|
|
46.0536
|
|
|
|
75.1614
|
|
|
|
100
|
|
|
LTV≤40%
|
|
Severity (%)
|
|
|
0.0225
|
|
|
|
0.0441
|
|
|
|
0.0482
|
|
|
|
0.0482
|
|
|
|
0.0537
|
|
|
|
|
Expected Loss (%)
|
|
|
0.0002
|
|
|
|
0.0094
|
|
|
|
0.0222
|
|
|
|
0.0362
|
|
|
|
0.0537
|
|
|
|
|
PNP(%)
|
|
|
1.9158
|
|
|
|
27.4332
|
|
|
|
52.0824
|
|
|
|
78.9511
|
|
|
|
100
|
|
|
40%< LTV ≤80%
|
|
Severity (%)
|
|
|
2.1955
|
|
|
|
2.8233
|
|
|
|
2.9192
|
|
|
|
2.9192
|
|
|
|
3.0413
|
|
|
|
|
Expected Loss (%)
|
|
|
0.0421
|
|
|
|
0.7745
|
|
|
|
1.5204
|
|
|
|
2.3047
|
|
|
|
3.0413
|
|
|
|
|
PNP(%)
|
|
|
2.5150
|
|
|
|
27.9300
|
|
|
|
52.5800
|
|
|
|
79.6952
|
|
|
|
100
|
|
|
80%< LTV ≤90%
|
|
Severity (%)
|
|
|
21.5527
|
|
|
|
21.6600
|
|
|
|
21.9200
|
|
|
|
22.1331
|
|
|
|
22.2310
|
|
|
|
|
Expected Loss (%)
|
|
|
0.5421
|
|
|
|
6.0496
|
|
|
|
11.5255
|
|
|
|
17.6390
|
|
|
|
22.2310
|
|
|
|
|
PNP(%)
|
|
|
2.7400
|
|
|
|
28.4300
|
|
|
|
53.0800
|
|
|
|
80.3677
|
|
|
|
100
|
|
|
LTV >90%
|
|
Severity (%)
|
|
|
27.2000
|
|
|
|
29.0300
|
|
|
|
29.5900
|
|
|
|
30.1558
|
|
|
|
30.2436
|
|
|
|
|
Expected Loss (%)
|
|
|
0.7453
|
|
|
|
8.2532
|
|
|
|
15.7064
|
|
|
|
24.2355
|
|
|
|
30.2436
|
|
LTV =Loan capital/Value of guarantee
If the same debtor has more than one residential
mortgage loan with the Bank and one of them over 90 days overdue, all their loans shall be allocated to the impaired portfolio,
calculating provisions for each them in accordance with their respective LTV.
For residential mortgage loans related
to housing programs and grants from the Chilean government, the allowance rate may be weighted by a factor of loss mitigation (LM),
which depends on the LTV percentage and the price of the property in the deed of sale (S), as long as the debtor has contracted
auction insurance provided by the Chilean government.
|
|
III.
|
Additional provisions
|
According to SBIF regulation, banks are
allowed to establish provisions over the limits already described, to protect themselves from the risk of non-predictable economical
fluctuations that could affect the macro-economic environment or a specific economic sector.
According to No. 9 of Chapter B-1 from
the SBIF Compendium of Accounting Standards, these provisions will be recorded in liabilities, similar to provisions for contingent
loans.
The bank has set up additional provisions
at the end of the third quarter of 2018 for an amount of MCh $ 20,000, associated with the Bank's consumer portfolio, which have
been approved by the bank's board of directors (Note 31).
As a general rule, charge-offs should be
done when the contract rights over cash flow expire. In the case of loans, even if the above does not happen, the Bank will charge-off
these amounts in accordance with Title II of Chapter B-2 of the Compendium of Accounting Standards (SBIF).
These charge-offs refer to the derecognition
from the Consolidated Statements of Financial Position of the respective loan, including any not yet due future payments in the
case of installment loans or leasing transactions (for which partial charge-offs do not exist).
Charge-offs are always recorded as a charge
to loan risk allowances according to Chapter B-2 of the Compendium of Accounting Regulations, no matter the reason for the charge-off.
Any payment received related to a loan previously charged-off will be recognized as recovery of loan previously charged-off at
the Consolidated Statement of Income.
Consolidated Financial Statements December 2018 / Banco Santander Chile
28
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, continued
Loan and accounts receivable charge-offs are recorded for overdue,
past due, and current installments when they exceed the time periods described below since reaching overdue status:
|
Type of loan
|
|
Term
|
|
Consumer loans with or without collateral
|
|
6 months
|
|
Other transactions without collateral
|
|
24 months
|
|
Commercial loans with collateral
|
|
36 months
|
|
Mortgage loans
|
|
48 months
|
|
Consumer leasing
|
|
6 months
|
|
Other non-mortgage leasing transactions
|
|
12 months
|
|
Mortgage leasing (household and business)
|
|
36 months
|
|
|
V.
|
Recovery of loans previously charged off and accounts
receivable from customers
|
Any recovery on "Loans and accounts receivable from customers" previously charged-off will be recognized
as a reduction in the credit risk provisions in the Consolidated Statement of Income.
Any renegotiation of a loan previously
charged-off will not give rise to income, as long as the operation continues being considered as impaired. The cash payments received
must be treated as recoveries of charged-off loans.
The renegotiated loan can only be included
again in assets if it is no longer considered as impaired, also recognizing the capitalization income as recovery of charged-off
loans.
|
|
q)
|
Provisions, contingent assets, and contingent liabilities
|
Provisions are liabilities of uncertain timing or amount. Provisions
are recognized in the Consolidated Statements of Financial Position when the Bank:
|
|
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.
|
Contingent assets or contingent liabilities
are any potential rights or obligations arising from past events whose existence will be confirmed only by the occurrence or non-occurrence
if one or more uncertain future events that are not wholly within control of the Bank.
The Consolidated Financial Statements reflect
all significant provisions for which it is estimated that the probability of having to meet the obligation is more than likely
than not. Provisions are quantified using the best available information regarding the consequences of the event giving rise to
them and are reviewed and adjusted at the end of accounting period. Provisions are used when the liabilities for which they were
originally recognized are settled. Partial or total reversals are recognized when such liabilities cease to exist or are reduced.
Provisions are classified according to the obligation covered
as follows:
|
|
-
|
Provision for employee salaries and expenses
|
|
|
-
|
Provision for mandatory dividends
|
|
|
-
|
Provision for contingent loan risks
|
|
|
-
|
Provisions for contingencies
|
|
|
r)
|
Income taxes and deferred taxes
|
The Bank records, when appropriate, deferred
tax assets and liabilities for the estimated future tax effects attributable to differences between the carrying amount of assets
and liabilities and their tax bases. The measurement of deferred tax assets and liabilities is based on the tax rate, in accordance
with the applicable tax laws, using the tax rate that applies to the period when the deferred asset and liability will be recovered
or settled. The future effects of changes in tax legislation or tax rates are recorded in deferred taxes from the date on which
the law is enacted or substantially enacted.
Consolidated Financial Statements December 2018 / Banco Santander Chile
29
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The preparation of the financial statements
requires the Bank's management to make estimates and assumptions that affect the application of the accounting policies and the
reported values of assets, liabilities, revenues and expenses. Actual results may differ from these estimates.
In certain cases, International Financial
Reporting Standards (IFRS) require that assets or liabilities be recorded or disclosed at their fair values. The fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between informed market
participants at the measurement date. When available, quoted market prices in active markets have been used as the basis for measurement.
When quoted market prices in active markets are not available, the Bank has estimated such values based on the best information
available, including the use of internal modeling and other valuation techniques.
The Bank has established allowances to cover probable losses, to estimate allowances. These allowances must
be regularly reviewed taking into consideration factors such as changes in the nature and volume of the loan portfolio, trends
in forecasted portfolio quality, credit quality and economic conditions that may adversely affect the borrowers' ability to pay.
Increases in the allowances for loan losses are reflected as "Provision for loan losses" in the Consolidated Statement
of Income.
Loans are charged-off when the contractual
rights for the cash flows expire, however, for loans and accounts receivable from customers the bank will charge-off in accordance
with Title II of Chapter B-2 of the Compendium of Accounting Standards issued by the SBIF. Charge-offs are recorded as a reduction
of the allowance for loan losses.
The relevant estimates and
assumptions made to calculate provisions are regularly reviewed by the Bank's Management to quantify certain assets,
liabilities, revenues, expenses, and commitments.
Revised accounting estimates are recorded in the period in which
the estimate is revised and in any affected future period.
These estimates are based on the best available information
and mainly refer to:
|
|
-
|
Allowances for loan losses (Notes 9, 10, and 31)
|
|
|
-
|
Impairment losses of certain assets (Notes 8, 9, 10,
11, and 34)
|
|
|
-
|
The useful lives of tangible and intangible assets (Notes
13, 14 and 34)
|
|
|
-
|
The fair value of assets and liabilities (Notes 6, 7,
8, 11 and 38)
|
|
|
-
|
Commitments and contingencies (Note 23)
|
|
|
-
|
Current and deferred taxes (Note 15)
|
|
|
t)
|
Non-current assets held for sale
|
Non-current assets (or a group of assets
and liabilities) that expect to be recovered mainly through the sale of these items rather than through their continued use, are
classified as held for sale. Immediately prior to this classification, assets (or elements of a disposable group) are valued in
accordance with the Bank's policies. The assets (or disposal group) are subsequently valued at the lower of carrying amount and
fair value less selling costs.
|
|
u)
|
Assets received or awarded in lieu of payment
|
Assets received or awarded in lieu of payment
of loans and accounts receivable from clients are recognized at their fair value. A price is agreed upon by the parties through
negotiation or, when the parties do not reach an agreement, at the amount at which the Bank is awarded those assets at a judicial
auction. In the both cases, an independent appraisal is performed.
Any excess of the outstanding loan balance over the fair value
is recognized in the Consolidated Statement of Income under "Provision for loan losses".
These assets are subsequently valued at
the lower of the amount initially recorded and the net realizable value, which corresponds to its fair value (liquidity value determined
through an independent appraisal) less their respective costs of sale. The difference between both are recognized in the Consolidated
Statement under "Other operating expenses".
At the end of each year the Bank performs an analysis to review the "selling costs" of assets received
or awarded in lieu of payments which will be applied at this date and during the following year. As of December 31, 2018, the average
selling cost has been estimated at 2.2% of the appraisal value (3.4% for December 31, 2017).
Independent appraisals are obtained at least every 18 months
and fair values are adjusted accordingly.
Consolidated Financial Statements December 2018 / Banco Santander Chile
30
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In general, it is estimated that these
assets will be disposed of within a term of one year from its date of award. As set forth in article 84 of the General Banking
Act, those assets that are not sold within that term are charged-off in a single installment.
Basic earnings per share are calculated
by dividing the net income attributable to the equity holders of the Bank by the weighted average number of shares outstanding
during the reported period.
Diluted earnings per share are calculated
in a similar manner to basic earnings, but the weighted average number of outstanding shares is adjusted to take into consideration
the potential diluting effect of stock options, warrants, and convertible debt.
As of December 31, 2018, and 2017, the Bank did not have any instruments that generated dilution.
|
|
w)
|
Temporary acquisition (assignment) of assets and liabilities
|
Purchases or sales of financial
assets under non-optional repurchase agreements at a fixed price (repos) are recorded in the Consolidated Statements of
Financial Position as an financial assignment based on the nature of the debtor (creditor) under "Deposits in the
Central Bank of Chile," "Deposits in financial institutions" or "Loans and accounts receivable from
customers" ("Central Bank of Chile deposits," "Deposits from financial institutions" or
"Customer deposits").
Differences between the purchase and sale prices are recorded
as financial interest over the term of the contract.
|
|
x)
|
Assets under management and investment funds managed
by the Bank
|
Assets owned by third parties and managed
by certain companies that are within the Bank's scope of consolidation (Santander S.A. Sociedad Securitizadora), are not included
in the Consolidated Statement of Financial Position. Management fees are included in "Fee and commission income" in the
Consolidated Statement of Income.
|
|
y)
|
Provision for mandatory dividends
|
As of December 31, 2018, and 2017, the Bank recorded a provision for minimum mandatory dividends. This provision
is made pursuant to Article 79 of the Corporations Act, which is in accordance with the Bank's internal policy, which requires
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 unanimous vote of the outstanding shares. This provision is recorded as a deduction from "Retained
earnings" — "Provision for mandatory dividends" in the Consolidated Statement of Changes in Equity with offset
to Provisions.
|
|
i.
|
Post-employment benefits — Defined Benefit Plan:
|
According to current collective labor agreements
and other agreements, the Bank has an additional benefit available to its principal executives, consisting of a pension plan, whose
purpose is to endow them with funds for a better supplementary pension upon their retirement.
Features of the Plan:
The main features of the Post-Employment Benefits Plan promoted
by the Banco Santander Chile are:
|
|
I.
|
Aimed at the Bank's management.
|
|
|
II.
|
The general requirement is that the beneficiary must still be employed by the Bank when reaching 60 years old.
|
|
|
III.
|
The Bank will mix collective life and savings insurance policy for each beneficiary in the plan. Regular voluntary
installments will be paid into this fund by the beneficiary and matched by the Bank.
|
|
|
IV.
|
The Bank will be responsible for granting the benefits directly.
|
The projected unit credit method is used to calculate the present
value of the defined benefit obligation and the current service cost.
Consolidated Financial Statements December 2018 / Banco Santander Chile
31
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Components of defined benefit cost include:
|
|
-
|
current service cost and any past service cost, which
are recognized in profit or loss for the period;
|
|
|
-
|
net interest on the liability (asset) for net defined
benefit, which is recognized in profit or loss for the period;
|
|
|
-
|
new liability (asset) remeasurements for net defined
benefit include:
|
|
|
(a)
|
actuarial gains and losses;
|
|
|
(b)
|
the performance of plan assets, and;
|
|
|
(c)
|
changes in the effect of the asset ceiling which are recognized in other comprehensive income.
|
The liability (asset) for net defined benefit
is the deficit or surplus, calculated as the difference between the present value of the defined benefit obligation less the fair
value of plan assets.
Plan assets comprise the pension fund taken
out by the Group with a third party that is not a related party. These assets are held by an entity legally separated from the
Bank and exist solely to pay benefits to employees.
The Bank recognizes the present service cost and the net interest of the Personnel wages and expenses on the
Consolidated Statement of Income. Given the plan's structure, it does not generate actuarial gains or losses. The plan's performance
is established and fixed during the period; consequently, there are no changes in the asset's cap. Accordingly, there are no amounts
recognized in other comprehensive income.
The post-employment benefits liability,
recognized in the Consolidated Statement of Financial Position, represents the deficit or surplus in the defined benefit plans
of the Bank. Any surplus resulting from the calculation is limited to the present value of any economic benefits available in the
form of refunds from the plan or reductions in future contributions.
When employees leave the plan before meeting the requirements
to be eligible for the benefit, contributions made by the Bank are reduced.
Severance provision for years of employment
are recorded only when they actually occur or upon the availability of a formal and detailed plan in which the fundamental modifications
to be made are identified, provided that such plan has already started to be implemented or its principal features have been publicly
announced, or objective facts about its execution are known.
|
|
iii.
|
Cash-settled
share-based compensation
|
The Bank allocates cash-settled share-based compensation to executives of the Bank and its Subsidiaries in
accordance with IFRS 2. The Bank measures the services received and the obligation incurred at fair value.
Until the obligation is settled, the Bank
calculates the fair value at the end of each reporting period, as well as at the date of settlement, recognizing any change in
fair value in the income statement for the period.
|
|
aa)
|
New accounting pronouncements
|
|
|
i.
|
Adoption of new accounting standards and instructions
issued both by the Superintendency of Banks and Financial Institutions and the International Accounting Standards Board:
|
As of the issue date of these Consolidated
Financial Statements, the following new accounting pronouncements have been issued by the both the SBIF and the IASB, which have
been fully incorporated by the Bank and are detailed as follows:
|
|
1.
|
Accounting Standards issued by the Superintendency
of Banks and Financial Institutions
|
Circular No. 3.634 —
Risk
weighted assets, credit risk and credit limits that apply to derivatives compensated and liquidated by a clearing house-On March
9, 2018, the SBIF published this bulletin with the main objective being that Banks could recognize their own risk mitigation effects
for derivatives that are compensated and liquidated by a clearing house, introducing an intermediate category to classify the credit
risk equivalent for these derivatives, the risk weight granted for these assets will be 2%.
In order to determine the credit risk equivalent for these derivatives compensated and liquidated by a clearing
house, the type of relationship and residual time between the bank and clearing house will have to be taken in consideration, as
well as the corresponding safeguards and guarantees.
Consolidated Financial Statements December 2018 / Banco Santander Chile
32
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Additionally, the SBIF considers that the derivative operations negotiated by Banks constituted in Chile,
including foreign bank branches, this limit is applicable to interbank loans, even when these operations are later compensated
and liquidated in a clearing house.
These modifications are applicable from June 30, 2018 onwards.
The administration has carried out the necessary
adjustments to comply with this requirement in time and form. No relevant situations exist that indicate the contrary.
|
|
2.
|
Accounting Standards issued by the International Accounting
Standards Board
|
IFRS 15, Income from contracts with clients
-
On May 28, 2014, the IASB published IFRS 15, which aims to establish principles for reporting useful information to users
of financial information about the nature, amount, timing and uncertainty of the income and cash flows generated from an entity's
contracts with its customers. IFRS 15 eliminates IAS 11 Construction Contracts, IAS 18 Income, IFRIC 13 Loyalty Programs with Customers,
IFRIC 15 Real Estate Construction Agreements, IFRIC 18 Transfer of Assets from Customers and SIC 31 Revenue - Exchange of Advertising
Services.
On April 12, 2016, the IASB issued "Clarifications
to IFRS 15 Revenue from contracts with customers", these amendments do not change the underlying principles of the standard,
just clarify and offer some additional transition relief. The main topics addressed by this amendment comprise: Identifying performance
obligations, Principal versus agent considerations and licensing in addition to transition relief.
This standard was applicable from January 1,
2018, with early application permitted.
Management performed a detailed review of items under the scope and its adaptation to
the new five-step model of revenue recognition and conclude that this standard did not have material impact on the Bank's financial
statement.
Amendments to IFRS 2 Classification
and measurement of share-based payment transactions —
These amendments were published on June 20, 2016, to address issues
with:
|
|
●
|
The accounting of share-based payment transactions paid in cash that
include a performance condition
|
|
|
●
|
The classification of share-based transactions
|
|
|
●
|
Accounting for modifications of share-based payment transactions from
cash-settled to equity-settled.
|
This standard was applicable from January
1, 2018, with early application permitted.
Management evaluation conclude that this amendment did not have material impact on
the Bank's financial statement.
Amendments to IFRS 4:
Applying IFRS
9 Financial Instruments with IFRS 4 Insurance Contracts - The amendments are intended to address concerns about the different effective
dates of IFRS 9 and the forthcoming new insurance contracts standard (expected as IFRS 17 within the next six months). The amendments
provide two options for entities that issue insurance contracts within the scope of IFRS 4:
|
|
-
|
an option that permits entities to reclassify, from profit
or loss to other comprehensive income, some of the income or expenses arising from designated financial assets (the "overlay
approach");
|
|
|
-
|
an optional temporary exemption from applying IFRS 9
for entities whose predominant activity is issuing contracts within the scope of IFRS 4 (the "deferral approach").
|
An entity would apply the overlay approach
retrospectively to qualifying financial assets when it first applies IFRS 9 while an entity would apply the deferral approach for
annual periods beginning on or after January 1, 2018. Management evaluation conclude that this amendment did not have material
impact on the Bank's financial statement.
IFRIC 22 Foreign Currency Transactions
and Advance Consideration
—
These interpretations
issued on December 8, 2016, clarifies the accounting for transactions that include the receipt or payment of advance consideration
in a foreign currency. The Interpretation covers foreign currency transactions when an entity recognizes a non-monetary asset
or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related
asset, expense or income. It does not apply when an entity measures the related asset, expense or income on initial recognition
at fair value or at the fair value of the consideration received or payed at a date other than the date of initial recognition
of the non-monetary asset or non-monetary liability. Also, the Interpretation need not be applied to income taxes, insurance contracts
or reinsurance contracts.
The date of the transaction, for the purpose
of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
IFRIC 22 was effective for annual reporting
periods beginning on or after 1 January 2018.
Earlier application was permitted. Management evaluation conclude that this amendment
did not have material impact on the Bank's financial statement.
Consolidated Financial Statements December 2018 / Banco Santander Chile
33
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES, continued
Annual Improvement 2014-2016
IFRS 1 First time adoption of IFRS -
Deletion of short-term
exemptions for first-time adopters.
IAS 28 Investments in Associates and Joint Ventures -
Measuring
an associate or joint venture at fair value.
The amendments to IFRS 1 and IAS 28 were
effective for annual periods beginning on or after 1 January 2018.
Management concluded that this amendment did not have a material
impact on the Bank's financial statement.
|
|
II.
|
New accounting standards and instructions issued by
both the Superintendency of Banks and Financial Institutions and by the International Accounting Standards Board that have not
come into effect as of December 31, 2018
|
As of the closing date of these financial
statements, new International Financial Reporting Standards had been published as well as interpretations of them and SBIF rules,
which were not mandatory as of December 31, 2018. Although in some cases the application is permitted by the IASB, the Bank has
not made its application on that date.
|
|
1.
|
Accounting Standards issued by the Superintendency
of Banks and Financial Institutions
|
Circular No. 3.638-
Establishes the
standard provision method for commercial loans on a group portfolio- On July 6, 2018, the SBIF published this bulletin that establishes
standard methods that must be utilized by banks for credit risk provisions directed for commercial loans on a group portfolio
which are incorporated in Chapter B-1 of the Compendium of Accounting Standards.
|
|
●
|
Method
used for the Commercial Leasing Portfolio:
considers
as overdue the asset type, the lease (real-estate or not) and the current value-to-value
relation of the asset (LTV) of the operation.
|
|
|
●
|
Method
used for the Student Portfolio:
considers the type of loan granted (whether it is CAE or not), the required payment and amount
overdue, in case the loan has these characteristics.
|
|
|
●
|
Method
used for the Generic Commercial Portfolio:
considers as overdue and the existence of real guarantees that warrant the loan.
In case of mediated guarantees, the relation between the loan and real value of the collateral is considered.
|
The use of the standard method to generate the provisions credits in the group commercial portfolio, will
be mandatory starting on July 1, 2019, while the accounting effects of first application must be considered as a change in an accounting
response according to IAS 8, and therefore accounted in profit or
loss. The Administration is evaluating the potential impact
for the adoption of this modification.
|
|
2.
|
Accounting Standards issued by the International Accounting
Standards Board
|
IFRS 9, Financial Instruments -
On
November 12, 2009, the International Accounting Standards Board (IASB) issued IFRS 9, Financial Instruments. This Standard introduces
new requirements for the classification and measurement of financial assets. IFRS 9 specifies how an entity should classify and
measure its financial assets. Requires that all financial assets are classified in their entirety on the basis of the entity's
business model for the management of financial assets and the characteristics of the contractual cash flows of financial assets.
On October 28, 2010, the IASB published a revised version of IFRS 9, Financial Instruments. The revised Standard
retains the requirements for the classification and measurement of financial assets that was published in November 2009 but adds
guidelines on the classification and measurement of financial liabilities. Likewise, it has replicated the guidelines on the recognition
of financial instruments and the implementation guides related from IAS 39 to IFRS 9. These new guidelines conclude the first phase
of the IASB project to replace IAS 39. The other phases, impairment and hedge accounting, have not yet been finalized.
The guidance included in IFRS 9 on the
classification and measurement of financial assets has not changed from those established in IAS 39. In other words, financial
liabilities will continue to be measured either at amortized cost or at fair value with changes in results. The concept of bifurcation
of derivatives incorporated in a contract for a financial asset has not changed Financial liabilities held for trading will continue
to be measured at fair value with changes in results, and all other financial assets will be measured at amortized cost unless
the value option is applied reasonable using the criteria currently in IAS 39.
Notwithstanding the foregoing, there are two differences with
respect to IAS 39:
|
|
-
|
The presentation of the effects of changes in fair value
attributable to the credit risk of a liability; and
|
|
|
-
|
The elimination of the cost exemption for liabilities
derivatives to be settled through the delivery of non-traded equity instruments.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
34
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, continued
On December 16, 2011, the IASB issued Mandatory Application Date of IFRS 9 and Disclosures of the Transition,
deferring the effective date of both the 2009 and 2010 versions to annual periods beginning on or after January 1, 2015. Prior
to the amendments, the application of IFRS 9 was mandatory for annual periods beginning on or after 2013. The amendments change
the requirements for the transition from IAS 39 Financial Instruments: Recognition and Measurement to IFRS 9. In addition, they
also modify IFRS 7 Financial Instruments: Disclosures to add certain requirements in the reporting period in which the date of
application of IFRS 9 is included. Finally, on July 24, 2014, it is established that the date Effective application of this rule
will be for annual periods beginning on January 1, 2018.
On November 19, 2013 ASB issued "Amendment
to IFRS 9: hedge accounting and amendments to IFRS 9, IFRS 7 and IAS 39", which includes a new general hedge accounting model,
which is more closely aligned with risk management, providing more useful information to the users of the financial statements.
On the other hand, the requirements relating to the fair value option for financial liabilities were changed to address the credit
risk itself, this improvement establishes that the effects of changes in the credit risk of a liability should not affect the result
of the period a unless the liabilities remain to negotiate; the early adoption of this modification is permitted without the application
of the other requirements of IFRS 9. In addition, it conditions the effective date of entry into force upon completion of the IFRS
9 project, allowing its adoption in the same way.
On July 24, 2014, the IASB published the
final version of IFRS 9 - Financial Instruments, including the regulations already issued together with a new expected loss model
and minor modifications to the classification and measurement requirements for financial assets, adding a new category of financial
instruments: assets at fair value with changes in other comprehensive result for certain debt instruments. It also includes an
additional guide on how to apply the business model and testing of contractual cash flow characteristics.
On October 12, 2017, "Amendment to
IFRS 9: Characteristics of Anticipated Cancellation with Negative Compensation" was published, which clarifies that according
to the current requirements of IFRS 9, the conditions established in Test SPPI are not met if the Bank should make a settlement
payment when the client decides to terminate the credit. With the introduction of this modification, in relation to termination
rights, it is allowed to measure at amortized cost (or FVOCI) in the case of negative compensation.
This regulation was effective as of January
1, 2018. Early application is allowed.
The Administration in accordance with the Superintendency of Banks and Financial Institutions
pronouncement, will not apply this standard meantime SBIF does not provide it as a mandatory standard for all Chilean banks.
Sale or Contributions of Assets between
an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) -
Issued on September 11, 2014, the IASB
has published 'Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and
IAS 28)'. The amendments address a conflict between the requirements of IAS 28 'Investments in Associates and Joint Ventures' and
IFRS 10 'Consolidated Financial Statements' and clarifies the treatment of the sale or contribution of assets from an investor
to its associate or joint venture, as follows:
|
|
-
|
requires full recognition in the investor's financial
statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3
Business Combinations);
|
|
|
-
|
requires the partial recognition of gains and losses
where the assets do not constitute a business, i.e. a gain or loss is recognized only to the extent of the unrelated investors'
interests in that associate or joint venture.
|
On December 17, 2015 the IASB has published
final amendments to "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture". The amendments
defer the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity
method has been concluded.
The Administration will be waiting for the new validity to evaluate the potential effects of this
modification.
IFRS 16 Leases -
On January 13,
2016, the IASB issued this new regulation which replaces IAS 17 Leases, IFRIC 4 Determination of whether an agreement contains
a lease, SIC 15 Operating leases - incentives and SIC 27 Evacuation of the essence of Transactions that take the legal form of
a lease. The main effects of this rule apply to tenant accounting, mainly because it eliminates the dual accounting model: operational
or financial leasing, this means that tenants must recognize "a right to use an asset" and a liability for Lease (the
present value of lease futures payments). In the case of the landlord the current practice is maintained - that is, lessors continue
to classify leases as financial and operating leases. This regulation is applicable as of January 1, 2019, with early application
permitted if IFRS 15 "Customer Contract Revenue" is applied. The Administration is evaluating the potential impact of
the adoption of these regulations.
The bank has established a team that has
reviewed the Bank's lease agreements, the new lease accounting guidelines in IFRS 16. The standard mainly affects the accounting
of the Bank's operating leases. To date, the Bank has non-cancelable operating lease commitments and short-term leases, which are
recognized in the straight line as lease expenses in the results. For lease commitments that are in accordance with the standard,
the Bank becomes a right to use a supplier MCh$ 154,284 as of January 1, 2019 contract the steps for the same amount you are entitled
to use the simplified transmission approach, The Bank intends to apply the simplified
transition approach and will not re-express the comparative amounts for the year prior to adoption. The right-of-use assets for
property leases are measured in the transition as the new rules would have always applied. All other assets for right of use are
measured in the amount of the liability for the lease on adoption (adjusted for any lease expense paid in advance or accrued).
Consolidated Financial Statements December 2018 / Banco Santander Chile
35
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 01
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES, continued
IFRS 17 Insurance contracts —
This standard issued on May 18, 2017 replaces the current IFRS 4. IFRS 17 will mainly change accounting for all entities that
issue insurance contracts and investment contracts with discretionary participation characteristics. The standard applies to annual
periods beginning on or after January 1, 2021, with early application permitted provided IFRS 15, "Revenue from contracts
with customers" and IFRS 9, "Financial instruments" is applied.
This norm does not apply directly to the bank,
but, the Bank participates in the insurance business and will make sure that this norm is correctly applied.
IFRIC 23 Uncertainty over Income Tax
Treatments —
This standard issued on June 7, 2017, clarifies how the recognition and measurement requirements of IAS
12 apply when there is uncertainty about tax treatments. The standard applies to annual periods beginning on or after January 1,
2019, with early application permitted. The Bank's management has considered that these amendments will not have material impact
on the consolidated financial statements of the Bank.
Amendments to IAS 28 long-term interest
in Associates and Joint Ventures -
This standard was issued in October 12, 2017 to clarify that an entity applies IFRS 9 including
its impairment requirements, to long-term interests in an associate or joint venture that form part of the net investment in the
associate or joint venture but to which the equity method is not applied. The amendments are effective for periods beginning on
or after January 1, 2019, early application is permitted.
Annual Improvements to IFRS Standards 2015-2017
Cycle
-This annual improvement issued in December 12, 2017, containing the following amendments:
IFRS 3 Business Combination and IFRS
11 Joint Arrangements —
The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a
joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify an entity obtains
joint control of a business that is a joint operation, the entity does not remeasure previously held interest in that business.
IAS 12 Income taxes —
The
amendments clarify that all income tax consequences of dividends should be recognized in profit or loss, regardless of how the
tax arises.
IAS 23 Borrowing cost —
The
amendments clarify that if any specific borrowing remain outstanding after the related asset is ready for its intended use or sale,
that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings.
The amendments are effective for periods
beginning on or after January 1, 2019, early application is permitted.
The Bank's management has considered that these amendments
will not have material impact on the consolidated financial statements of the Bank.
Amendments to IAS 19:
Plan amendment,
curtailment or settlement - The amendment was issued on February 7, 2018 and include the following changes:
|
|
-
|
If a plan amendment, curtailment or settlement occurs,
it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using
the assumptions used for the remeasurement.
|
|
|
-
|
In addition, amendments have been included to clarify
the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.
|
The amendments are effective for periods
beginning on or after January 1, 2019, early application is permitted, but must be disclosed.
The Bank's management is evaluating
if these amendments will have material impact on the Bank's consolidated financial statements.
Conceptual framework for financial reporting -
Issued
on March 29, 2018, the purpose of the Conceptual Framework is to:
|
|
(a)
|
assist the International Accounting Standards Board to
develop IFRS Standards that are based on consistent concepts;
|
|
|
(b)
|
assist preparers to develop consistent accounting policies
when no Standard applies to a particular transaction or other event, or when a Standard allows a choice of accounting policy;
and
|
|
|
(c)
|
assist all parties to understand and interpret the Standards
|
The Conceptual Framework is not a Standard and not
overrides any Standard or any requirement in a Standard. The revised Conceptual framework introduces the following main
improvements:
|
|
-
|
Measurement: concepts on measurement, including factors
to be considered when selecting a measurement basis.
|
|
|
-
|
Presentation and disclosure: concepts on presentation
and disclosure, including when to classify income and expenses in other comprehensive income.
|
|
|
-
|
Derecognition: guidance on when assets and liabilities
are removed from financial statements.
|
This framework is effective for periods beginning on or after January 1, 2020.
The Bank's management is
evaluating if this conceptual framework will have material impact on the Bank's consolidated financial statements.
Consolidated Financial Statements December 2018 / Banco Santander Chile
36
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 02
ACCOUNTING CHANGES
As of January 1, 2018, the IFRS 15 regulations
have entered into force. Revenue from ordinary activities from contracts with customers, this regulation under the activities carried
out by the Bank affects the income from commissions and services.
The Bank has chosen to use the modified
retrospective method of the initial application of this standard as an option to transition as an adjustment to the opening balance
of the accumulated earnings of the annual presentation period that includes the initial application date, therefore, not it requires
the presentation of the immediately previous period according to this new accounting policy.
As part of the process of implementing
this standard, the Bank conducted a process of reviewing the income from commissions and services and their associated expenses,
and based on the 5-step model established in the regulations, it was concluded that the adoption of this standard it did not have
material quantitative impacts, but it did have a revelation, which have been included in Note 1, letter i) Main accounting criteria
used and Note No. 28 Commissions.
Consolidated Financial Statements December 2018 / Banco Santander Chile
37
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 03
SIGNIFICANT EVENTS
I.- As of December 31, 2018, the following significant events
have occurred and affected the Bank's operations and Consolidated Financial Statements.
During the ordinary session of the Board of Directors of Banco
Santander-Chile, held on February 27, 2018, the following matters were agreed:
|
|
-
|
On the occasion of the resignation of Mr. Vittorio Corbo
Lioi from his position as Director, it was held during said session, he was also exercised as Chairman of the Board of Directors,
he was appointed in his place as Director and Chairman of the Board of Banco Santander-Chile Mr. Claudio Melandri Hinojosa, who
will temporarily hold the position of General Manager until February 28, 2018 inclusive, in accordance with the provisions of
Article 49 No. 8 of the General Banking Law.
|
|
|
-
|
The Bank's General Manager has been appointed, as of
March 1, 2018, Mr. Miguel Mata Huerta, who served as Deputy General Manager, the latter being charged and agreed to be abolished.
|
During the ordinary session of the Board of Directors of Banco
Santander-Chile, held on March 27, 2018, the following matters were agreed:
|
|
-
|
On the occasion of the resignation of the Regular Directors,
Mr. Roberto Méndez Torres and Mr. Roberto Zahler Mayanz, made on this date, the Board of Directors has appointed Messrs. Félix
de Vicente Mingo and Alfonso Gómez Morales as their regular Directors. independent
|
|
|
-
|
Mr. Orlando Poblete Iturrate has been appointed First
Vice President and Oscar Von Chrismar Carvajal as Second Vice President.
|
|
|
-
|
It was agreed to call an Ordinary Meeting of Shareholders
for April 24, 2018.
|
At the Ordinary Shareholders' Meeting of
Banco Santander-Chile, held on April 24, 2018, Claudio Melandri Hinojosa, appointed Chairman and the independent directors Alfonso
Gómez Morales and José Félix de Vicente Mingo, were appointed as permanent directors. previously designated by the Board.
During the ordinary session of the Board of Directors of Banco
Santander-Chile, held on July 12, 2018, the following agreements were adopted:
|
|
-
|
On the occasion of the resignation of the substitute
director Mr. Raimundo Monge Zegers, the board of directors has appointed Mr. Oscar Von Chrismar Carvajal, who was the titular
director.
|
|
|
-
|
Mr. Rodrigo Vergara Montes has been appointed independent
director.
|
|
|
-
|
Mr. Rodrigo Vergara Montes and Second Vice President
Mr. Orlando Poblete Iturrate have been appointed First Vice President.
|
|
|
b)
|
Use of profits and distribution of dividends
|
At the Ordinary Shareholders' Meeting of
Banco Santander-Chile held on April 24, 2018, together with approving the Consolidated Financial Statements corresponding to the
year 2017, it was agreed to distribute 75% of the net profits for the year (which are denominated in the financial statements).
consolidated "Profit attributable to equity holders of the Bank"), which amounted to $ 564,815 million. These profits
correspond to a dividend of $ 2.24791611 for each share. Likewise, it is approved that the remaining 25% of the profits will be
used to increase the Bank's reserves.
|
|
c)
|
Appointment
of External auditors
|
In the Board indicated above, it was agreed
to appoint the firm PricewaterhouseCoopers Consultores, Auditores y Compañía Limited, as external auditors of the Bank and its
subsidiaries for the 2018 fiscal year.
Consolidated Financial Statements December 2018 / Banco Santander Chile
38
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 03
SIGNIFICANT EVENTS, continued
|
|
d)
|
Issuance of bonds — As of December 31, 2018
|
|
|
d.1)
|
Senior bonds year 2018
|
In the year ended December 31, 2018 the Bank has issued senior
bonds int the amount of AUD 200,000,000, EUR 66,000,000, CHF 115,000,000, JPY 7,000,000,000 and USD 70,000,000 Debt issuance information
is included in Note 19.
|
Series
|
|
Currency
|
|
Term
|
|
Term
Original (annual)
|
|
|
Issuance
date
|
|
Issuance amount
|
|
|
Maturity
date
|
|
AUD
|
|
AUD
|
|
5
|
|
|
3.56
|
%
|
|
13-11-2018
|
|
|
20,000,000
|
|
|
13-11-2023
|
|
Total
|
|
AUD
|
|
|
|
|
|
|
|
|
|
|
20,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHF
|
|
CHF
|
|
5
|
|
|
0.44
|
%
|
|
21-09-2018
|
|
|
115,000,000
|
|
|
21-12-2023
|
|
Total
|
|
CHF
|
|
|
|
|
|
|
|
|
|
|
115,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR
|
|
EUR
|
|
7
|
|
|
1.00
|
%
|
|
04-05-2018
|
|
|
26,000,000
|
|
|
28-05-2025
|
|
EUR
|
|
EUR
|
|
12
|
|
|
1.78
|
%
|
|
07-06-2018
|
|
|
40,000,000
|
|
|
15-06-2030
|
|
Total
|
|
EUR
|
|
|
|
|
|
|
|
|
|
|
66,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPY
|
|
JPY
|
|
10.5
|
|
|
0.65
|
%
|
|
13-07-2018
|
|
|
4,000,000,000
|
|
|
13-01-2029
|
|
JPY
|
|
JPY
|
|
5
|
|
|
0.56
|
%
|
|
30-10-2018
|
|
|
3,000,000,000
|
|
|
30-10-2023
|
|
Total
|
|
JPY
|
|
|
|
|
|
|
|
|
|
|
7,000,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
USD
|
|
10
|
|
|
3.69
|
%
|
|
10-10-2018
|
|
|
50,000,000
|
|
|
10-10-2028
|
|
USD
|
|
USD
|
|
2
|
|
|
4.17
|
%
|
|
16-11-2018
|
|
|
20,000,000
|
|
|
16-11-2020
|
|
Total
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
70,000,000
|
|
|
|
|
|
d.2)
|
Subordinated bonds year 2018
|
As of December 2018, the Bank did not issue subordinated bonds.
|
|
d.3)
|
Mortgage bonds year 2018
|
As of December 2018, the Bank did not issue mortgage bonds.
|
|
d.4)
|
Repurchased bonds year 2018
|
In the nine months ended December 31, 2018 the Bank has repurchased
the following bonds:
|
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
|
04-01-2018
|
|
Senior
|
|
CLP
|
|
|
12,890,000,000
|
|
|
04-01-2018
|
|
Senior
|
|
CLP
|
|
|
4,600,000,000
|
|
|
22-01-2018
|
|
Senior
|
|
UF
|
|
|
24,000
|
|
|
05-04-2018
|
|
Senior
|
|
UF
|
|
|
484,000
|
|
|
06-04-2018
|
|
Senior
|
|
UF
|
|
|
184,000
|
|
|
23-04-2018
|
|
Senior
|
|
UF
|
|
|
216,000
|
|
|
24-04-2018
|
|
Senior
|
|
UF
|
|
|
4,000
|
|
|
25-04-2018
|
|
Senior
|
|
UF
|
|
|
262,000
|
|
|
10-05-2018
|
|
Senior
|
|
UF
|
|
|
800,000
|
|
|
07-06-2018
|
|
Senior
|
|
USD
|
|
|
3,090,000
|
|
|
11-12-2018
|
|
Senior
|
|
USD
|
|
|
250,000,000
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
39
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 03
SIGNIFICANT
EVENTS, continued
II.- As of December 31, 2017, the following
significant events have occurred and affected the Bank's operations and Consolidated Financial Statements.
On April 5, 2017, the bylaws of Banco Santander
Chile, approved at the Extraordinary Shareholders' Meeting held on January 9, 2017, were published in the Official Gazette, whose
minutes were reduced to a public deed on February 14, 2017, in Nancy de la Fuente Hernández's Notary of Santiago. Among others,
a consolidated text of the bylaws was established and, after the reforms introduced, its essential clauses are the following:
|
|
-
|
Name: Banco Santander-Chile
|
|
|
-
|
Purpose: The execution or conclusion of all acts, contracts, businesses or operations that the laws, especially
the General Law of Banks, allow the banks to perform without prejudice to extend or restrict their sphere of action in harmony
with the legal provisions in force or that are established in the future, without the need to amend the present statutes.
|
|
|
-
|
Capital: $ 891,302,881,691, divided into 188,446,126,794
nominative shares, with no par value, of the same and only series.
|
|
|
-
|
Directory: Corresponds to a Board composed of 9 full
members and 2 alternates.
|
At the Ordinary Shareholders' Meeting held
on April 26, 2017, the Board of Directors was elected for a period of three years, consisting of nine Principal Directors and two
Alternate Directors. The following persons were elected:
Principal Directors: Vittorio Corbo Lioi,
Oscar von Chrismar Carvajal, Roberto Méndez Torres, Juan Pedro Santa María Pérez, Ana Dorrego de Carlos, Andreu Plaza López, Lucia
Santa Cruz Sutil, Orlando Poblete Iturrate and Roberto Zahler Mayanz.
Alternate Directors: Blanca Bustamante
Bravo and Raimundo Monge Zegers
|
|
b)
|
Use of Profits and Distribution of Dividends
|
At the Ordinary General Shareholders' Meeting
held on April 26, 2017, together with approving the Consolidated Financial Statements for 2016, it was agreed to distribute 70%
of the net profits for the year (which are denominated in the consolidated financial statements "Profit attributable to holders
Of the Bank "), which amounted to Ch $ 472,351 million. These profits correspond to a dividend of $ 1,75459102 per share.
Likewise, it was approved that the remaining
30% of the profits be destined to increase the Bank's reserves.
|
|
c)
|
Appointment of External Auditors
|
At the Board mentioned above, it was agreed
to appoint the firm PricewaterhouseCoopers Consultores, Auditores SpA, as external auditors of the Bank and its subsidiaries for
2017.
Consolidated Financial Statements December 2018 / Banco Santander Chile
40
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 03
SIGNIFICANT EVENTS, continued
|
|
d)
|
Issuance of bank bonds - As of December 31, 2017:
|
|
|
d.1
|
Senior Bonds as of December 31, 2017
|
In the year ended December 31, 2017 the
Bank has issued senior bonds int the amount of USD 770,000,000 and AUD 30,000,000 Debt issuance information is included in Note
19.
|
Series
|
|
Currency
|
|
Amount
|
|
|
Term
|
|
Issuance rate
|
|
Issuance date
|
|
Issuance
amount
|
|
|
Maturity date
|
|
DN
|
|
USD
|
|
|
100,000,000
|
|
|
3.0
|
|
Libor-USD 3M+0,80%
|
|
20-07-2017
|
|
|
100,000,000
|
|
|
27-07-2020
|
|
DN
|
|
USD
|
|
|
50,000,000
|
|
|
3.0
|
|
Libor-USD 3M+0,80%
|
|
21-07-2017
|
|
|
50,000,000
|
|
|
27-07-2020
|
|
DN
|
|
USD
|
|
|
50,000,000
|
|
|
3.0
|
|
Libor-USD 3M+0,80%
|
|
24-07-2017
|
|
|
50,000,000
|
|
|
27-07-2020
|
|
DN
|
|
USD
|
|
|
10,000,000
|
|
|
4.0
|
|
Libor-USD 3M+0,83%
|
|
23-08-2017
|
|
|
10,000,000
|
|
|
23-11-2021
|
|
DN
|
|
USD
|
|
|
10,000,000
|
|
|
4.0
|
|
Libor-USD 3M+0,83%
|
|
23-08-2017
|
|
|
10,000,000
|
|
|
23-11-2021
|
|
DN
|
|
USD
|
|
|
50,000,000
|
|
|
3.0
|
|
Libor-USD 3M+0,75%
|
|
14-09-2017
|
|
|
50,000,000
|
|
|
15-09-2020
|
|
DN
|
|
USD
|
|
|
500,000,000
|
|
|
3.0
|
|
2.50%
|
|
12-12-2017
|
|
|
500,000,000
|
|
|
15-12-2020
|
|
Total
|
|
USD
|
|
|
770,000,000
|
|
|
|
|
|
|
|
|
|
770,000,000
|
|
|
|
|
AUD
|
|
AUD
|
|
|
30,000,000
|
|
|
10.0
|
|
3.96%
|
|
05-12-2017
|
|
|
30,000,000
|
|
|
12-12-2027
|
|
Total
|
|
AUD
|
|
|
30,000,000
|
|
|
|
|
|
|
|
|
|
30,000,000
|
|
|
|
|
|
d.2
|
Subordinated Bonds as of December 31, 2017
|
As of December 2017, the Bank did not issue subordinated bonds.
|
|
d.3
|
Mortgage bonds as of December 31, 2017
|
As of December 2017, the Bank did not issue mortgage bonds.
As of 2017 the Bank has repurchased the following bonds:
|
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
|
06-03-2017
|
|
Senior
|
|
USD
|
|
|
6,900,000
|
|
|
12-05-2017
|
|
Senior
|
|
UF
|
|
|
1,000,000
|
|
|
16-05-2017
|
|
Senior
|
|
UF
|
|
|
690,000
|
|
|
17-05-2017
|
|
Senior
|
|
UF
|
|
|
15,000
|
|
|
26-05-2017
|
|
Senior
|
|
UF
|
|
|
340,000
|
|
|
01-06-2017
|
|
Senior
|
|
UF
|
|
|
590,000
|
|
|
02-06-2017
|
|
Senior
|
|
UF
|
|
|
300,000
|
|
|
05-06-2017
|
|
Senior
|
|
UF
|
|
|
130,000
|
|
|
19-06-2017
|
|
Senior
|
|
UF
|
|
|
265,000
|
|
|
10-07-2017
|
|
Senior
|
|
UF
|
|
|
770,000
|
|
|
21-07-2017
|
|
Senior
|
|
UF
|
|
|
10,000
|
|
|
28-08-2017
|
|
Senior
|
|
UF
|
|
|
400,000
|
|
|
29-08-2017
|
|
Senior
|
|
UF
|
|
|
272,000
|
|
|
03-11-2017
|
|
Senior
|
|
UF
|
|
|
14,000
|
|
|
29-11-2017
|
|
Senior
|
|
UF
|
|
|
400,000
|
|
|
06-12-2017
|
|
Senior
|
|
UF
|
|
|
20,000
|
|
|
12-12-2017
|
|
Senior
|
|
CLP
|
|
|
10,990,000,000
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
41
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 04
REPORTING
SEGMENTS
The Bank manages and measures the performance
of its operations by business segments. The information disclosed in this note is not necessarily comparable to that of other financial
institutions, since it is based on management's internal information system by segment.
Inter-segment transactions are conducted under normal arm's length commercial terms and conditions. Each segment's
assets, liabilities, and income include items directly attributable to the segment to which they can be allocated on a reasonable
basis.
In order to achieve compliance with the strategic
objectives established by senior management and adapt to changing market conditions, from time to time, the Bank makes adjustments
in its organization, modifications that in turn impact to a greater or lesser extent, in the way in which it is managed or managed.
Thus, the present disclosure provides information on how the Bank is managed as of December 31, 2018. Regarding the information
corresponding to the year 2017, it has been prepared with the current criteria at the closing of these financial statements in
order to achieve the due comparability of the figures.
The Bank has the reportable segments noted
below:
Retail Banking
Consists of individuals and small to middle-sized entities (PYMEs) with annual income less than Ch$1,200 million.
This segment gives customers a variety of services, including consumer loans, credit cards, auto loans, commercial loans, foreign
exchange, mortgage loans, debit cards, checking accounts, savings products, mutual funds, stockbrokerage, and insurance brokerage.
Additionally, the PYMEs clients are offered government-guaranteed loans, leasing and factoring.
Middle-market
This segment is made up of companies and large corporations with annual sales exceeding Ch$1,200 million.
It serves institutions such as universities, government entities, local and regional governments and companies engaged in the real
estate industry who carry out projects to sell properties to third parties and annual sales exceeding Ch$800 million with no upper
limit. The companies within this segment have access to many products including commercial loans, leasing, factoring, foreign trade,
credit cards, mortgage loans, checking accounts, transactional services, treasury services, financial consulting, savings products,
mutual funds, and insurance brokerage. Also, companies in the real estate industry are offered specialized services to finance
residential projects, with the aim of expanding sales of mortgage loans.
Global Corporate Banking
This segment consists of foreign and domestic
multinational companies with sales over Ch$10,000 million. The companies within this segment have access to many products including
commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, transactional services, treasury
services, financial consulting, investments, savings products, mutual funds and insurance brokerage.
This segment also consists of a Treasury
Division which provides sophisticated financial products, mainly to companies in the Middle-market and Global Corporate Banking
segments. These include products such as short-term financing and fund raising, brokerage services, derivatives, securitization,
and other tailor-made products. The Treasury area may act as brokers to transactions and also manages the Bank's investment portfolio.
Corporate Activities ("Other")
This segment mainly includes the results
of our Financial Management Division, which develops global management functions, including managing inflation rate risk, foreign
currency gaps, interest rate risk and liquidity risk. Liquidity risk is managed mainly through wholesale deposits, debt issuances
and the Bank's available for sale portfolio. This segment also manages capital allocation by unit. These activities usually result
in a negative contribution to income.
In addition, this segment encompasses all
the intra-segment income and all the activities not assigned to a given segment or product with customers.
The segments' accounting policies are those
described in the summary of accounting policies. The Bank earns most of its income in the form of interest income, fee and commission
income and income from financial operations. To evaluate a segment's financial performance and make decisions regarding the resources
to be assigned to segments, the Chief Operating Decision Maker (CODM) bases his assessment on the segment's interest income, fee
and commission income, and expenses.
Consolidated Financial Statements December 2018 / Banco Santander Chile
42
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 04
REPORTING SEGMENTS, continued
Below are the tables showing the Bank's
results by business segment, for the periods ending as of December 31, 2018 and 2017:
|
|
|
December 31, 2018
|
|
|
|
|
Loans and
accounts
receivable
from
customers
(1)
|
|
|
Net interest
income
|
|
|
Net fee and
commission
income
|
|
|
Financial
transactions
net
(2)
|
|
|
Provision
for loan
losses
|
|
|
Support
expenses
(3)
|
|
|
Segment`s
net
contribution
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Banking
|
|
|
20,786,637
|
|
|
|
949,764
|
|
|
|
220,532
|
|
|
|
19,694
|
|
|
|
(275,351
|
)
|
|
|
(553.157
|
)
|
|
|
361.482
|
|
|
Middle-market
|
|
|
7,690,380
|
|
|
|
272,912
|
|
|
|
36,746
|
|
|
|
16,848
|
|
|
|
(26,314
|
)
|
|
|
(92.377
|
)
|
|
|
207.815
|
|
|
Commercial Banking
|
|
|
28,477,017
|
|
|
|
1,222,676
|
|
|
|
257,278
|
|
|
|
36,542
|
|
|
|
(301,665
|
)
|
|
|
(645,534
|
)
|
|
|
569,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Corporate Banking
|
|
|
1,681,697
|
|
|
|
96,722
|
|
|
|
35,064
|
|
|
|
57,340
|
|
|
|
2,339
|
|
|
|
(64,913
|
)
|
|
|
126,552
|
|
|
Corporate Activities (“others”)
|
|
|
123,309
|
|
|
|
94,970
|
|
|
|
(1,457
|
)
|
|
|
11,200
|
|
|
|
(25,759
|
)
|
|
|
(11,486
|
)
|
|
|
67,468
|
|
|
Total
|
|
|
30,282,023
|
|
|
|
1,414,368
|
|
|
|
290,885
|
|
|
|
105,082
|
|
|
|
(325,085
|
)
|
|
|
(721,933
|
)
|
|
|
763,317
|
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,526
|
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(45,779
|
)
|
|
Income from investments in associates and other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,095
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(165,897
|
)
|
|
Net income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
596,262
|
|
|
|
(1)
|
Loans receivable from customers plus the balance indebted by banks, without deducting their allowances for loan losses.
|
|
|
(2)
|
The sum of net income (expense) from financial operations and foreign exchange gains or losses.
|
|
|
(3)
|
The sum of personnel salaries and expenses, administrative expenses, depreciation and amortization.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
43
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 04
REPORTING SEGMENTS, continued
|
|
|
December 31, 2017
|
|
|
|
|
Loans and
accounts
receivable from
customers
(1)
|
|
|
Net interest
income
|
|
|
Net fee and
commission
income
|
|
|
Financial
transactions,
net
(2)
|
|
|
Provision
for loan
losses
|
|
|
Support
expenses
(3)
|
|
|
Segment`s
net
contribution
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Banking
|
|
|
19,233,169
|
|
|
|
970,332
|
|
|
|
206,449
|
|
|
|
20,595
|
|
|
|
(290,156
|
)
|
|
|
(534,970
|
)
|
|
|
372,250
|
|
|
Middle-market
|
|
|
6,775,734
|
|
|
|
264,663
|
|
|
|
36,280
|
|
|
|
13,751
|
|
|
|
(19,312
|
)
|
|
|
(91,882
|
)
|
|
|
203,500
|
|
|
Commercial Banking
|
|
|
26,008,903
|
|
|
|
1,234,995
|
|
|
|
242,729
|
|
|
|
34,346
|
|
|
|
(309,468
|
)
|
|
|
(626,852
|
)
|
|
|
575,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Corporate Banking
|
|
|
1,633,796
|
|
|
|
100,808
|
|
|
|
27,626
|
|
|
|
50,714
|
|
|
|
4,008
|
|
|
|
(62,685
|
)
|
|
|
120,471
|
|
|
Corporate Activities (“others”)
|
|
|
83,215
|
|
|
|
(9,112
|
)
|
|
|
8,708
|
|
|
|
44,692
|
|
|
|
6,255
|
|
|
|
(15,356
|
)
|
|
|
35,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
27,725,914
|
|
|
|
1,326,691
|
|
|
|
279,063
|
|
|
|
129,752
|
|
|
|
(299,205
|
)
|
|
|
(704,893
|
)
|
|
|
731,408
|
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,163
|
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(101,658
|
)
|
|
Income from investments in associates and other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,963
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(143,613
|
)
|
|
Net income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
577,263
|
|
|
|
(1)
|
Loans
receivable from customers plus the balance indebted by banks, without deducting their allowances for loan losses.
|
|
|
(2)
|
The sum of net income (expense) from financial operations and foreign exchange gains or losses.
|
|
|
(3)
|
The sum of personnel salaries and expenses, administrative expenses, depreciation and amortization.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
44
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 05
CASH AND CASH EQUIVALENTS
|
|
a)
|
The detail of the balances included under cash and cash equivalents is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Cash and deposit in banks
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
824,863
|
|
|
|
613,361
|
|
|
Deposit in the Central Bank of Chile
|
|
|
953,016
|
|
|
|
441,683
|
|
|
Deposit in domestic banks
|
|
|
664
|
|
|
|
393
|
|
|
Deposit in foreign banks
|
|
|
286,898
|
|
|
|
397,485
|
|
|
Subtotal
|
|
|
2,065,441
|
|
|
|
1,452,922
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash in process of collection, net
|
|
|
190,714
|
|
|
|
181,419
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
2,256,155
|
|
|
|
1,634,341
|
|
The balance of funds held in cash and deposits in the Central
Bank of Chile reflects the reserves that the Bank must maintain on average each month.
|
|
b)
|
Operations in process of settlement:
|
Operations in process of settlement are transactions with only settlement pending, which will increase or
decrease the funds of the Central Bank of Chile or of banks abroad, usually within the next 24 or 48 working hours to each end
of period. These operations are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Documents held by other banks (document to be cleared)
|
|
|
210,546
|
|
|
|
199,619
|
|
|
Funds receivable
|
|
|
143,211
|
|
|
|
468,526
|
|
|
Subtotal
|
|
|
353,757
|
|
|
|
668,145
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Funds payable
|
|
|
163,043
|
|
|
|
486,726
|
|
|
Subtotal
|
|
|
163,043
|
|
|
|
486,726
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash in process of collection, net
|
|
|
190,714
|
|
|
|
181,419
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
45
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 06
TRADING INVESTMENTS
The detail of instruments deemed as financial
trading investments is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank and Government securities
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
22,947
|
|
|
|
272,272
|
|
|
Chilean Central Bank Notes
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean Central Bank and Government securities
|
|
|
48,211
|
|
|
|
209,370
|
|
|
Subtotal
|
|
|
71,158
|
|
|
|
481,642
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Foreign financial securities
|
|
|
|
|
|
|
|
|
|
Foreign Central Banks and Government securities
|
|
|
-
|
|
|
|
-
|
|
|
Other foreign financial instruments
|
|
|
5,883
|
|
|
|
-
|
|
|
Subtotal
|
|
|
5,883
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in mutual funds
|
|
|
|
|
|
|
|
|
|
Funds managed by related entities
|
|
|
-
|
|
|
|
4,094
|
|
|
Funds managed by third parties
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
4,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
77,041
|
|
|
|
485,736
|
|
As of December 31, 2018, and 2017, there were
no trading investments sold under contracts to resell to clients and financial institutions.
Consolidated Financial Statements December 2018 / Banco Santander Chile
46
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 07
INVESTMENTS UNDER RESALE AGREEMENTS AND OBLIGATIONS UNDER
REPURCHASE AGREEMENTS
|
|
a)
|
Rights arising from agreements
|
The Bank purchases financial instruments agreeing to resell
them at a future date, As December 31, 2018 and 2017, rights associated with instruments acquired under contracts to resell are
as follows.
|
|
|
As December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
From 1 day
and less
than 3
month
MCh$
|
|
|
More tan
3
months
and less
than 1
year
MCh$
|
|
|
More
than
1 year
MCh$
|
|
|
Total
MCh$
|
|
|
From 1 day
and less
than 3 months
MCh$
|
|
|
More
than 3
months
and less
than 1
year
MCh$
|
|
|
More
than 1
year
MCh$
|
|
|
Total
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities from the Chilean Government and the Chilean Central Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean Central Bank Notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other securities from the Government and the Chilean Central Bank
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Instruments from other domestic institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time-deposits in Chilean financial institutions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Mortgage finance bonds of Chilean financial institutions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean financial institutions bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Foreign financial securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign government or central bank securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Investments in mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds managed by related entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Funds managed by other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
47
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 07
INVESTMENTS UNDER RESALE AGREEMENTS AND OBLIGATION
UNDER REPURCHASE AGREEMENTS, continued
|
|
b)
|
Obligations arising from repurchase agreements
|
The bank raises funds by selling financial instruments and committing itself to buy them back at future dates,
plus interest at a predetermined rate. As of December 31, 2018, and 2017, obligation related to instruments sold under repurchase
agreements are as follow:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More
|
|
|
|
|
|
|
|
|
|
|
|
|
|
More tan
|
|
|
|
|
|
|
|
|
|
|
|
than 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months
|
|
|
|
|
|
|
|
|
|
|
|
months
|
|
|
|
|
|
|
|
|
|
|
From 1 day
|
|
|
and less
|
|
|
More
|
|
|
|
|
|
From 1 day
|
|
|
and less
|
|
|
More
|
|
|
|
|
|
|
|
and less tan
|
|
|
than 1
|
|
|
than
|
|
|
|
|
|
and less
|
|
|
than 1
|
|
|
than 1
|
|
|
|
|
|
|
|
3 months
|
|
|
year
|
|
|
1year
|
|
|
Total
|
|
|
than3 month
|
|
|
year
|
|
|
year
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities from the Chilean Government and the Chilean Central Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
48,307
|
|
|
|
-
|
|
|
|
-
|
|
|
|
48,307
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean Central Bank Notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other securities from the Government and the Chilean Central Bank
|
|
|
110
|
|
|
|
-
|
|
|
|
-
|
|
|
|
110
|
|
|
|
241,995
|
|
|
|
-
|
|
|
|
-
|
|
|
|
241,995
|
|
|
Subtotal
|
|
|
48,417
|
|
|
|
-
|
|
|
|
-
|
|
|
|
48,417
|
|
|
|
241,995
|
|
|
|
-
|
|
|
|
-
|
|
|
|
241,995
|
|
|
Instruments from other domestic institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time-deposits in Chilean financial institutions
|
|
|
128
|
|
|
|
-
|
|
|
|
-
|
|
|
|
128
|
|
|
|
1,118
|
|
|
|
38
|
|
|
|
-
|
|
|
|
1,156
|
|
|
Mortgage finance bonds of Chilean financial institutions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean financial institutions bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
128
|
|
|
|
-
|
|
|
|
-
|
|
|
|
128
|
|
|
|
1,118
|
|
|
|
38
|
|
|
|
-
|
|
|
|
1,156
|
|
|
Foreign financial securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign government or central bank securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
Other foreign Chilean securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
Investments in mutual funds:
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds managed by related entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Funds managed by other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
48,545
|
|
|
|
-
|
|
|
|
-
|
|
|
|
48,545
|
|
|
|
268,023
|
|
|
|
38
|
|
|
|
-
|
|
|
|
268,061
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
48
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 07
INVESTMENTS UNDER RESALE AGREEMENTS AND OBLIGATION
UNDER REPURCHASE AGREEMENTS, continued
|
|
c)
|
Below is the detail by portfolio of collateral associated
with repurchase agreements as of December 31, 2018 and 2017, value at fair value:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available
|
|
|
|
|
|
|
|
|
|
|
Available for
|
|
|
Trading
|
|
|
|
|
|
for sale
|
|
|
Trading for
|
|
|
|
|
|
|
|
sale portfolio
|
|
|
portfolio
|
|
|
Total
|
|
|
portfolio
|
|
|
sale portfolio
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities from the Chilean Government and the Chilean Central Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
49,040
|
|
|
|
-
|
|
|
|
49,040
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean Central Bank Notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other securities from the Government and the Chilean Central Bank
|
|
|
109
|
|
|
|
-
|
|
|
|
109
|
|
|
|
241,995
|
|
|
|
-
|
|
|
|
241,995
|
|
|
Subtotal
|
|
|
49,149
|
|
|
|
-
|
|
|
|
49,109
|
|
|
|
241,995
|
|
|
|
-
|
|
|
|
241,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Chilean securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits in Chilean financial institutions
|
|
|
131
|
|
|
|
-
|
|
|
|
131
|
|
|
|
1,156
|
|
|
|
-
|
|
|
|
1,156
|
|
|
Mortgage finance bond of Chilean financial institutions
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean financial institution bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
132
|
|
|
|
-
|
|
|
|
132
|
|
|
|
1,156
|
|
|
|
-
|
|
|
|
1,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign financial securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Central Bank and Government securities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
|
-
|
|
|
|
24,910
|
|
|
Other Foreign financial instruments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,910
|
|
|
|
-
|
|
|
|
24,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds managed by related entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Funds managed by other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
49,281
|
|
|
|
-
|
|
|
|
49,281
|
|
|
|
268,061
|
|
|
|
-
|
|
|
|
268,061
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
49
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGE ACCOUNTING
|
|
a)
|
As of December 31, 2018, and 2017, the Bank holds the following portfolio of derivative instruments:
|
|
|
|
As of December 31, 2018
|
|
|
|
|
Notional amount
|
|
|
Fair value
|
|
|
|
|
|
|
|
More than 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 3
|
|
|
months to
|
|
|
More than
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months
|
|
|
1 year
|
|
|
1 year
|
|
|
Total
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate swaps
|
|
|
80,000
|
|
|
|
491,600
|
|
|
|
1,191,012
|
|
|
|
1,762,612
|
|
|
|
14,789
|
|
|
|
9,188
|
|
|
Cross currency swaps
|
|
|
-
|
|
|
|
1,276,909
|
|
|
|
6,706,197
|
|
|
|
7,983,106
|
|
|
|
96,357
|
|
|
|
36,708
|
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
80,000
|
|
|
|
1,768,509
|
|
|
|
7,897,209
|
|
|
|
9,745,718
|
|
|
|
111,146
|
|
|
|
45,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
205,750
|
|
|
|
168,151
|
|
|
|
-
|
|
|
|
373,901
|
|
|
|
-
|
|
|
|
8,013
|
|
|
Interest rate swaps
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Cross currency swaps
|
|
|
1,920,900
|
|
|
|
1,970,412
|
|
|
|
9,191,209
|
|
|
|
13,082,521
|
|
|
|
79,859
|
|
|
|
32,712
|
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
2,126,650
|
|
|
|
2,138,563
|
|
|
|
9,191,209
|
|
|
|
13,456,422
|
|
|
|
79,859
|
|
|
|
40,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
15,301,943
|
|
|
|
13,080,875
|
|
|
|
6,062,183
|
|
|
|
34,445,001
|
|
|
|
613,063
|
|
|
|
466,741
|
|
|
Interest rate swaps
|
|
|
12,024,095
|
|
|
|
22,064,681
|
|
|
|
69,453,618
|
|
|
|
103,542,394
|
|
|
|
723,870
|
|
|
|
577,835
|
|
|
Cross currency swaps
|
|
|
2,173,111
|
|
|
|
8,853,306
|
|
|
|
68,976,339
|
|
|
|
80,002,756
|
|
|
|
1,568,365
|
|
|
|
1,385,314
|
|
|
Call currency options
|
|
|
26,731
|
|
|
|
60,235
|
|
|
|
57,579
|
|
|
|
144,545
|
|
|
|
4,332
|
|
|
|
854
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
23,411
|
|
|
|
50,445
|
|
|
|
56,392
|
|
|
|
130,248
|
|
|
|
-
|
|
|
|
363
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
29,549,291
|
|
|
|
44,109,542
|
|
|
|
144,606,111
|
|
|
|
218,264,944
|
|
|
|
2,909,630
|
|
|
|
2,431,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
31,755,941
|
|
|
|
48,016,614
|
|
|
|
161,694,529
|
|
|
|
241,467,084
|
|
|
|
3,100,635
|
|
|
|
2,517,728
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
50
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGE ACCOUNTING, continued
|
|
|
As of December 31, 2017
|
|
|
|
|
Notional amount
|
|
|
Fair value
|
|
|
|
|
|
|
|
More than 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 3
|
|
|
months to
|
|
|
More than
|
|
|
|
|
|
|
|
|
|
|
|
|
|
months
|
|
|
1 year
|
|
|
1 year
|
|
|
Total
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate swaps
|
|
|
-
|
|
|
|
162,985
|
|
|
|
1,554,171
|
|
|
|
1,717,156
|
|
|
|
23,003
|
|
|
|
1,424
|
|
|
Cross currency swaps
|
|
|
-
|
|
|
|
715,701
|
|
|
|
5,362,772
|
|
|
|
6,078,473
|
|
|
|
15,085
|
|
|
|
65,724
|
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
-
|
|
|
|
878,686
|
|
|
|
6,916,943
|
|
|
|
7,795,629
|
|
|
|
38,088
|
|
|
|
67,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
801,093
|
|
|
|
218,982
|
|
|
|
-
|
|
|
|
1,020,075
|
|
|
|
39,233
|
|
|
|
59
|
|
|
Interest rate swaps
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Cross currency swaps
|
|
|
421,428
|
|
|
|
1,637,604
|
|
|
|
6,672,566
|
|
|
|
8,731,598
|
|
|
|
36,403
|
|
|
|
128,355
|
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
1,222,521
|
|
|
|
1,856,586
|
|
|
|
6,672,566
|
|
|
|
9,751,673
|
|
|
|
75,636
|
|
|
|
128,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
17,976,683
|
|
|
|
10,679,327
|
|
|
|
3,091,393
|
|
|
|
31,747,403
|
|
|
|
412,994
|
|
|
|
502,555
|
|
|
Interest rate swaps
|
|
|
9,069,964
|
|
|
|
14,389,389
|
|
|
|
46,342,779
|
|
|
|
69,802,132
|
|
|
|
467,188
|
|
|
|
392,366
|
|
|
Cross currency swaps
|
|
|
2,963,641
|
|
|
|
7,503,144
|
|
|
|
47,111,371
|
|
|
|
57,578,156
|
|
|
|
1,241,632
|
|
|
|
1,042,120
|
|
|
Call currency options
|
|
|
190,386
|
|
|
|
37,099
|
|
|
|
49,853
|
|
|
|
277,338
|
|
|
|
1,322
|
|
|
|
1,950
|
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Put currency options
|
|
|
192,722
|
|
|
|
28,616
|
|
|
|
50,470
|
|
|
|
271,808
|
|
|
|
1,787
|
|
|
|
4,935
|
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
30,393,396
|
|
|
|
32,637,575
|
|
|
|
96,645,866
|
|
|
|
159,676,837
|
|
|
|
2,124,923
|
|
|
|
1,943,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
31,615,917
|
|
|
|
35,372,847
|
|
|
|
110,235,375
|
|
|
|
177,224,139
|
|
|
|
2,238,647
|
|
|
|
2,139,488
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
51
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
Fair value hedge
The Bank uses cross-currency swaps, interest rate swaps and
call money swaps to hedge its exposure to changes in fair value of hedged items attributable to interest rates. The aforementioned
hedging instruments change the effective cost of long-term issuances from a fixed interest rate to a variable interest rate.
The hedged items and hedge instruments under fair value hedges
as of December 31, 2018 and 2017, classified by term to maturity are as follows:
|
|
|
Notional Amount
|
|
|
|
|
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
Within 1 year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
As of December 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credits and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
653,872
|
|
|
|
1,272,382
|
|
|
|
276,590
|
|
|
|
603,818
|
|
|
|
2,806,662
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yankee bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
172,072
|
|
|
|
172,072
|
|
|
Mortgage financing bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
3,779
|
|
|
|
-
|
|
|
|
3,779
|
|
|
American treasury bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
174,440
|
|
|
|
174,440
|
|
|
Chilean General treasury bonds
|
|
|
-
|
|
|
|
304,818
|
|
|
|
-
|
|
|
|
220,041
|
|
|
|
524,859
|
|
|
Central bank bonds (BCP)
|
|
|
-
|
|
|
|
449,730
|
|
|
|
-
|
|
|
|
-
|
|
|
|
449,730
|
|
|
Time deposits and other demand liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
486,013
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
486,013
|
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds
|
|
|
708,624
|
|
|
|
1,117,779
|
|
|
|
1,298,471
|
|
|
|
2,003,289
|
|
|
|
5,128,163
|
|
|
Subordinated bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Obligations with Banks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
1,848,509
|
|
|
|
3,144,709
|
|
|
|
1,578,840
|
|
|
|
3,173,660
|
|
|
|
9,745,718
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
1,276,909
|
|
|
|
2,794,709
|
|
|
|
1,228,840
|
|
|
|
2,682,648
|
|
|
|
7,983,106
|
|
|
Interest rate swaps
|
|
|
571,600
|
|
|
|
350,000
|
|
|
|
350,000
|
|
|
|
491,012
|
|
|
|
1,762,612
|
|
|
Total
|
|
|
1,848,509
|
|
|
|
3,144,709
|
|
|
|
1,578,840
|
|
|
|
3,173,660
|
|
|
|
9,745,718
|
|
|
|
|
Notional Amount
|
|
|
|
|
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
Within 1 year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
As of December 31, 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credits and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
587,412
|
|
|
|
801,230
|
|
|
|
106,910
|
|
|
|
-
|
|
|
|
1,495,552
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yankee bond
|
|
|
-
|
|
|
|
-
|
|
|
|
6,169
|
|
|
|
64,769
|
|
|
|
70,938
|
|
|
Mortgage finance bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
4,738
|
|
|
|
-
|
|
|
|
4,738
|
|
|
American treasury bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
129,539
|
|
|
|
129,539
|
|
|
Chilean General treasury bonds
|
|
|
-
|
|
|
|
21,377
|
|
|
|
762,727
|
|
|
|
-
|
|
|
|
784,104
|
|
|
Central bank bonds (BCP)
|
|
|
128,289
|
|
|
|
218,640
|
|
|
|
443,357
|
|
|
|
-
|
|
|
|
790,286
|
|
|
Time deposits and other demand liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
137,985
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
137,985
|
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds
|
|
|
25,000
|
|
|
|
1,399,686
|
|
|
|
670,488
|
|
|
|
2,287,313
|
|
|
|
4,382,487
|
|
|
Subordinated bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Obligations with Banks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
878,686
|
|
|
|
2,440,933
|
|
|
|
1,994,389
|
|
|
|
2,481,621
|
|
|
|
7,795,629
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
715,701
|
|
|
|
1,512,238
|
|
|
|
1,813,221
|
|
|
|
2,037,313
|
|
|
|
6,078,473
|
|
|
Interest rate swaps
|
|
|
162,985
|
|
|
|
928,695
|
|
|
|
181,168
|
|
|
|
444,308
|
|
|
|
1,717,156
|
|
|
Total
|
|
|
878,686
|
|
|
|
2,440,933
|
|
|
|
1,994,389
|
|
|
|
2,481,621
|
|
|
|
7,795,629
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
52
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
Cash flow hedges
The Bank uses cross currency swaps to hedge the risk from variability
of cash flows attributable to changes in the interest rates of mortgages, bonds and interbank loans at a variable rate. To cover
the inflation risk in some items, both forwards as well as currency swaps are used.
The notional values of the hedged items as of December 31, 2018
and 2017, and the period when the cash flows will be generated are as follows:
|
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
Within 1 year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
1,890,696
|
|
|
|
3,026,824
|
|
|
|
1,459,389
|
|
|
|
2,467,090
|
|
|
|
8,843,999
|
|
|
Commercial loans
|
|
|
109,585
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109,585
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits (ASI)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Yankee bond
|
|
|
-
|
|
|
|
-
|
|
|
|
246,306
|
|
|
|
-
|
|
|
|
246,306
|
|
|
Chilean Central Bank bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
166,628
|
|
|
|
-
|
|
|
|
166,628
|
|
|
Time deposits and other time liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds (variable rate)
|
|
|
-
|
|
|
|
666,823
|
|
|
|
-
|
|
|
|
-
|
|
|
|
666,823
|
|
|
Senior bonds (fixed rate)
|
|
|
500,583
|
|
|
|
52,790
|
|
|
|
601,639
|
|
|
|
503,721
|
|
|
|
1,658,733
|
|
|
Interbank borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
1,764,348
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,764,348
|
|
|
Total
|
|
|
4,265,212
|
|
|
|
3,746,437
|
|
|
|
2,473,962
|
|
|
|
2,970,811
|
|
|
|
13,456,422
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
3,891,311
|
|
|
|
3,746,437
|
|
|
|
2,473,962
|
|
|
|
2,970,811
|
|
|
|
13,082,521
|
|
|
Currency forwards
|
|
|
373,901
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
373,901
|
|
|
Total
|
|
|
4,265,212
|
|
|
|
3,746,437
|
|
|
|
2,473,962
|
|
|
|
2,970,811
|
|
|
|
13,456,422
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
Within 1 year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
1,153,348
|
|
|
|
583,061
|
|
|
|
1,335,141
|
|
|
|
2,353,871
|
|
|
|
5,425,421
|
|
|
Commercial loans
|
|
|
644,608
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
644,608
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits (ASI)
|
|
|
-
|
|
|
|
-
|
|
|
|
25,290
|
|
|
|
132,572
|
|
|
|
157,862
|
|
|
Yankee bond
|
|
|
-
|
|
|
|
-
|
|
|
|
242,819
|
|
|
|
-
|
|
|
|
242,819
|
|
|
Chilean Central Bank bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Time deposits and other time liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds (variable rate)
|
|
|
120,520
|
|
|
|
647,550
|
|
|
|
302,454
|
|
|
|
-
|
|
|
|
1,070,524
|
|
|
Senior bonds (fixed rate)
|
|
|
241,183
|
|
|
|
121,619
|
|
|
|
224,401
|
|
|
|
300,874
|
|
|
|
888,077
|
|
|
Interbank borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
919,448
|
|
|
|
402,914
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,322,362
|
|
|
Total
|
|
|
3,079,107
|
|
|
|
1,755,144
|
|
|
|
2,130,105
|
|
|
|
2,787,317
|
|
|
|
9,751,673
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
2,059,032
|
|
|
|
1,755,144
|
|
|
|
2,130,105
|
|
|
|
2,787,317
|
|
|
|
8,731,598
|
|
|
Currency forwards
|
|
|
1,020,075
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,020,075
|
|
|
Total
|
|
|
3,079,107
|
|
|
|
1,755,144
|
|
|
|
2,130,105
|
|
|
|
2,787,317
|
|
|
|
9,751,673
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
53
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
An estimate of the periods in
which flows are expected to be produced is as follows:
|
|
b.1)
|
Forecasted cash flows for interest rate risk:
|
|
|
|
As of December 31, 2018
|
|
|
|
|
Within 1
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
76,736
|
|
|
|
35,994
|
|
|
|
3,062
|
|
|
|
2,401
|
|
|
|
118,193
|
|
|
Outflows
|
|
|
(125,747
|
)
|
|
|
(46,372
|
)
|
|
|
(13,311
|
)
|
|
|
(4,701
|
)
|
|
|
(190,131
|
)
|
|
Net flows
|
|
|
(49,011
|
)
|
|
|
(10,378
|
)
|
|
|
(10,249
|
)
|
|
|
(2,300
|
)
|
|
|
(71,938
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
(76,736
|
)
|
|
|
(35,994
|
)
|
|
|
(3,062
|
)
|
|
|
(2,401
|
)
|
|
|
(118,193
|
)
|
|
Outflows (*)
|
|
|
125,747
|
|
|
|
46,372
|
|
|
|
13,311
|
|
|
|
4,701
|
|
|
|
190,131
|
|
|
Net flows
|
|
|
49,011
|
|
|
|
10,378
|
|
|
|
10,249
|
|
|
|
2,300
|
|
|
|
71,938
|
|
|
|
(*)
|
Only includes cash flow forecast portion of the hedge instruments
used to cover interest rate risk.
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Within 1
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
308,737
|
|
|
|
60,515
|
|
|
|
13,780
|
|
|
|
2,594
|
|
|
|
385,626
|
|
|
Outflows
|
|
|
(60,733
|
)
|
|
|
(43,507
|
)
|
|
|
(7,757
|
)
|
|
|
(878
|
)
|
|
|
(112,875
|
)
|
|
Net flows
|
|
|
248,004
|
|
|
|
17,008
|
|
|
|
6,023
|
|
|
|
1,716
|
|
|
|
272,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
60,733
|
|
|
|
43,507
|
|
|
|
7,757
|
|
|
|
878
|
|
|
|
112,875
|
|
|
Outflows (*)
|
|
|
(308,737
|
)
|
|
|
(60,515
|
)
|
|
|
(13,780
|
)
|
|
|
(2,594
|
)
|
|
|
(385,626
|
)
|
|
Net flows
|
|
|
(248,004
|
)
|
|
|
(17,008
|
)
|
|
|
(6,023
|
)
|
|
|
(1,716
|
)
|
|
|
(272,751
|
)
|
|
|
(*)
|
Only includes cash flow forecast portion of the hedge instruments
used to cover interest rate risk.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
54
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGE ACCOUNTING, continued
|
|
b.2)
|
Forecasted cash flows for inflation risk:
|
|
|
|
As of December 31, 2018
|
|
|
|
|
Within 1
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
37,086
|
|
|
|
73,576
|
|
|
|
166,516
|
|
|
|
310,293
|
|
|
|
587,471
|
|
|
Outflows
|
|
|
(14,036
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,036
|
)
|
|
Net flows
|
|
|
23,050
|
|
|
|
73,576
|
|
|
|
166,516
|
|
|
|
310,293
|
|
|
|
573,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
14,036
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,036
|
|
|
Outflows
|
|
|
(37,086
|
)
|
|
|
(73,576
|
)
|
|
|
(166,516
|
)
|
|
|
(310,293
|
)
|
|
|
(587,471
|
)
|
|
Net flows
|
|
|
(23,050
|
)
|
|
|
(73,576
|
)
|
|
|
(166,516
|
)
|
|
|
(310,293
|
)
|
|
|
(573,435
|
)
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Within 1
|
|
|
Between 1 and 3
|
|
|
Between 3 and 6
|
|
|
|
|
|
|
|
|
|
|
year
|
|
|
years
|
|
|
years
|
|
|
Over 6 years
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
20,300
|
|
|
|
29,008
|
|
|
|
103,544
|
|
|
|
286,471
|
|
|
|
439,323
|
|
|
Outflows
|
|
|
(1,645
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,645
|
)
|
|
Net flows
|
|
|
18,655
|
|
|
|
29,008
|
|
|
|
103,544
|
|
|
|
286,471
|
|
|
|
437,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
1,645
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,645
|
|
|
Outflows
|
|
|
(20,300
|
)
|
|
|
(29,008
|
)
|
|
|
(103,544
|
)
|
|
|
(286,471
|
)
|
|
|
(439,323
|
)
|
|
Net flows
|
|
|
(18,655
|
)
|
|
|
(29,008
|
)
|
|
|
(103,544
|
)
|
|
|
(286,471
|
)
|
|
|
(437,678
|
)
|
|
|
b,3)
|
Forecasted cash flows for exchange rate risk:
|
As of December 31, 2018, and 2017, the Bank did not have cash flow hedges for exchange rate risk.
Consolidated Financial Statements December 2018 / Banco Santander Chile
55
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 08
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
|
|
c)
|
The accumulated effect of the mark to market adjustment
of cash flow hedges produced by hedge instruments used in hedged cash flow was recorded in the Consolidated Statement of Changes
in Equity, specifically within the account of valuation accounts, Cash flow hedge, as of December 31, 2018 and 2017, and is as
follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Hedged item
|
|
MCh$
|
|
|
MCh$
|
|
|
Interbank loans
|
|
|
309
|
|
|
|
(4,779
|
)
|
|
Time deposits and other time liabilities
|
|
|
-
|
|
|
|
-
|
|
|
Issued debt instruments
|
|
|
(10,893
|
)
|
|
|
(8,683
|
)
|
|
Available for sale investments
|
|
|
(1,392
|
)
|
|
|
(364
|
)
|
|
Loans and accounts receivable from customers
|
|
|
21,779
|
|
|
|
10,264
|
|
|
Net flows
|
|
|
9,803
|
|
|
|
(3,562
|
)
|
Since the inflows and outflows for both the hedged element and
the hedging instrument mirror each other, the hedges are
nearly 100% effective, which means that the fluctuations
of fair value attributable to risk components are almost completely offset, During the year, the bank did not have any cash
flow hedges of forecast transactions.
As of December 31, 2018, and 2017, $ 2,912 million and $ 1,187 million, respectively, resulted from inefficiency.
During the period, the bank did not record anticipated future
transactions within its portfolio of cash flow accounting hedges.
|
|
d)
|
Below is a presentation of income generated by cash flow
hedges amount that were reclassified from other comprehensive income to income for the year:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Bond hedging derivatives
|
|
|
-
|
|
|
|
-
|
|
|
Interbank loans hedging derivatives
|
|
|
(683
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge net income
|
|
|
(683
|
)
|
|
|
-
|
|
See
Note 24- Equity, letter e).
|
|
e)
|
Net investment hedges in Foreign operation:
|
As of December 31, 2018, and 2017, the Bank does not have any Foreign net investment hedges in its hedge accounting
portfolio.
Consolidated Financial Statements December 2018 / Banco Santander Chile
56
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 09
INTERBANK LOANS
|
|
a)
|
As
of December 31, 2018, and 2017, balances of "Interbank loans" are as follows:
|
|
|
|
As of
|
|
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Domestic banks
|
|
|
|
|
|
|
|
|
|
Loans and advances to banks
|
|
|
-
|
|
|
|
-
|
|
|
Deposits in the Central Bank of Chile - not available
|
|
|
-
|
|
|
|
-
|
|
|
Non-transferable Chilean Central Bank Bonds
|
|
|
-
|
|
|
|
-
|
|
|
Other Central Bank of Chile loans
|
|
|
-
|
|
|
|
-
|
|
|
Interbank loans
|
|
|
-
|
|
|
|
-
|
|
|
Overdrafts in checking accounts
|
|
|
-
|
|
|
|
-
|
|
|
Non-transferable domestic bank loans
|
|
|
-
|
|
|
|
-
|
|
|
Other domestic bank loans
|
|
|
1
|
|
|
|
-
|
|
|
Allowances and impairment for domestic bank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign interbank loans
|
|
|
|
|
|
|
|
|
|
Interbank loans – Foreign
|
|
|
15,093
|
|
|
|
162,685
|
|
|
Overdrafts in checking accounts
|
|
|
-
|
|
|
|
-
|
|
|
Non-transferable foreign bank deposits
|
|
|
-
|
|
|
|
-
|
|
|
Other foreign bank loans
|
|
|
-
|
|
|
|
-
|
|
|
Provisions and impairment for foreign bank loans
|
|
|
(29
|
)
|
|
|
(86
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
15,065
|
|
|
|
162,599
|
|
|
|
b)
|
The amount of provisions and impairment of interbank
loans in each period is shown below:
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Domestic
|
|
|
Foreign
|
|
|
|
|
|
Domestic
|
|
|
Foreign
|
|
|
|
|
|
|
|
banks
|
|
|
banks
|
|
|
Total
|
|
|
banks
|
|
|
banks
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1
|
|
|
-
|
|
|
|
86
|
|
|
|
86
|
|
|
|
-
|
|
|
|
172
|
|
|
|
172
|
|
|
Charge-offs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Provisions established
|
|
|
-
|
|
|
|
45
|
|
|
|
45
|
|
|
|
251
|
|
|
|
56
|
|
|
|
307
|
|
|
Provisions released
|
|
|
-
|
|
|
|
(102
|
)
|
|
|
(102
|
)
|
|
|
(251
|
)
|
|
|
(142
|
)
|
|
|
(393
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
-
|
|
|
|
29
|
|
|
|
29
|
|
|
|
-
|
|
|
|
86
|
|
|
|
86
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
57
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS
|
|
a)
|
Loans and accounts receivable from customers
|
As of December 31, 2018, and 2017, the composition of the loan portfolio is as follows:
|
|
|
Assets before allowances
|
|
|
Allowances established
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Normal
|
|
|
Substandard
|
|
|
Impaired
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
|
|
|
net
|
|
|
|
|
portfolio
|
|
|
portfolio
|
|
|
portfolio
|
|
|
Total
|
|
|
allowances
|
|
|
allowances
|
|
|
Total
|
|
|
balance
|
|
|
As of December 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
9,988,841
|
|
|
|
552,460
|
|
|
|
661,073
|
|
|
|
11,202,374
|
|
|
|
151,769
|
|
|
|
179,318
|
|
|
|
331,087
|
|
|
|
10,871,287
|
|
|
Foreign trade loans
|
|
|
1,648,616
|
|
|
|
53,127
|
|
|
|
50,694
|
|
|
|
1,752,437
|
|
|
|
52,696
|
|
|
|
1,668
|
|
|
|
54,364
|
|
|
|
1,698,073
|
|
|
Checking accounts debtors
|
|
|
187,273
|
|
|
|
11,984
|
|
|
|
15,905
|
|
|
|
215,162
|
|
|
|
3,566
|
|
|
|
13,375
|
|
|
|
16,941
|
|
|
|
198,221
|
|
|
Factoring transactions
|
|
|
370,851
|
|
|
|
5,532
|
|
|
|
4,600
|
|
|
|
380,983
|
|
|
|
5,843
|
|
|
|
834
|
|
|
|
6,677
|
|
|
|
374,306
|
|
|
Student Loans
|
|
|
69,599
|
|
|
|
-
|
|
|
|
10,317
|
|
|
|
79,916
|
|
|
|
-
|
|
|
|
5,835
|
|
|
|
5,835
|
|
|
|
74,081
|
|
|
Leasing transactions
|
|
|
1,240,081
|
|
|
|
113,313
|
|
|
|
90,330
|
|
|
|
1,443,724
|
|
|
|
17,339
|
|
|
|
10,833
|
|
|
|
28,172
|
|
|
|
1,415,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans and account receivable
|
|
|
126,643
|
|
|
|
1,635
|
|
|
|
36,785
|
|
|
|
165,063
|
|
|
|
11,384
|
|
|
|
18,416
|
|
|
|
29,800
|
|
|
|
135,263
|
|
|
Subtotal
|
|
|
13,631,904
|
|
|
|
738,051
|
|
|
|
869,704
|
|
|
|
15,239,659
|
|
|
|
242,597
|
|
|
|
230,279
|
|
|
|
472,876
|
|
|
|
14,766,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans with mortgage finance bonds
|
|
|
16,153
|
|
|
|
-
|
|
|
|
1,273
|
|
|
|
17,426
|
|
|
|
-
|
|
|
|
97
|
|
|
|
97
|
|
|
|
17,329
|
|
|
Mortgage mutual loans
|
|
|
104,131
|
|
|
|
-
|
|
|
|
4,405
|
|
|
|
108,536
|
|
|
|
-
|
|
|
|
498
|
|
|
|
498
|
|
|
|
108,038
|
|
|
Other mortgage mutual loans
|
|
|
9,558,032
|
|
|
|
-
|
|
|
|
466,987
|
|
|
|
10,025,019
|
|
|
|
-
|
|
|
|
63,646
|
|
|
|
63,646
|
|
|
|
9,961,373
|
|
|
Subtotal
|
|
|
9,678,316
|
|
|
|
-
|
|
|
|
472,665
|
|
|
|
10,150,981
|
|
|
|
-
|
|
|
|
64,241
|
|
|
|
64,241
|
|
|
|
10,086,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment consumer loans
|
|
|
2,937,309
|
|
|
|
-
|
|
|
|
252,361
|
|
|
|
3,189,670
|
|
|
|
-
|
|
|
|
223,948
|
|
|
|
223,948
|
|
|
|
2,965,722
|
|
|
Credit card balances
|
|
|
1,399,112
|
|
|
|
-
|
|
|
|
18,040
|
|
|
|
1,417,152
|
|
|
|
-
|
|
|
|
26,673
|
|
|
|
26,673
|
|
|
|
1,390,479
|
|
|
Leasing transactions
|
|
|
4,071
|
|
|
|
-
|
|
|
|
86
|
|
|
|
4,157
|
|
|
|
-
|
|
|
|
72
|
|
|
|
72
|
|
|
|
4,085
|
|
|
Other consumer loans
|
|
|
261,202
|
|
|
|
-
|
|
|
|
4,108
|
|
|
|
265,310
|
|
|
|
-
|
|
|
|
8,749
|
|
|
|
8,749
|
|
|
|
256,561
|
|
|
Subtotal
|
|
|
4,601,694
|
|
|
|
-
|
|
|
|
274,595
|
|
|
|
4,876,289
|
|
|
|
-
|
|
|
|
259,442
|
|
|
|
259,442
|
|
|
|
4,616,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
27,911,914
|
|
|
|
738,051
|
|
|
|
1,616,964
|
|
|
|
30,266,929
|
|
|
|
242,597
|
|
|
|
553,962
|
|
|
|
796,559
|
|
|
|
29,470,370
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
58
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
|
Assets before allowances
|
|
|
Allowances established
|
|
|
|
|
Normal
|
|
|
Substandard
|
|
|
Impaired
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
|
|
|
Assets
|
|
|
|
|
portfolio
|
|
|
Portfolio
|
|
|
portfolio
|
|
|
Total
|
|
|
allowances
|
|
|
allowances
|
|
|
Total
|
|
|
net balance
|
|
|
As of December 31, 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
8,998,957
|
|
|
|
369,830
|
|
|
|
621,869
|
|
|
|
9,990,656
|
|
|
|
148,482
|
|
|
|
168,736
|
|
|
|
317,218
|
|
|
|
9,673,438
|
|
|
Foreign trade loans
|
|
|
1,464,754
|
|
|
|
44,830
|
|
|
|
64,929
|
|
|
|
1,574,513
|
|
|
|
54,628
|
|
|
|
1,444
|
|
|
|
56,072
|
|
|
|
1,518,441
|
|
|
Checking accounts debtors
|
|
|
174,162
|
|
|
|
6,189
|
|
|
|
15,345
|
|
|
|
195,696
|
|
|
|
3,037
|
|
|
|
11,740
|
|
|
|
14,777
|
|
|
|
180,919
|
|
|
Factoring transactions
|
|
|
441,437
|
|
|
|
3,279
|
|
|
|
5,174
|
|
|
|
449,890
|
|
|
|
5,335
|
|
|
|
1,207
|
|
|
|
6,542
|
|
|
|
443,348
|
|
|
Student Loans
|
|
|
77,226
|
|
|
|
-
|
|
|
|
11,064
|
|
|
|
88,290
|
|
|
|
-
|
|
|
|
5,922
|
|
|
|
5,922
|
|
|
|
82,368
|
|
|
Leasing transactions
|
|
|
1,242,713
|
|
|
|
113,629
|
|
|
|
100,662
|
|
|
|
1,457,004
|
|
|
|
19,532
|
|
|
|
12,793
|
|
|
|
32,325
|
|
|
|
1,424,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans and account receivable
|
|
|
113,672
|
|
|
|
1,318
|
|
|
|
37,603
|
|
|
|
152,593
|
|
|
|
12,778
|
|
|
|
17,231
|
|
|
|
30,009
|
|
|
|
122,584
|
|
|
Subtotal
|
|
|
12,512,921
|
|
|
|
539,075
|
|
|
|
856,646
|
|
|
|
13,908,642
|
|
|
|
243,792
|
|
|
|
219,073
|
|
|
|
462,865
|
|
|
|
13,445,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans with mortgage finance bonds
|
|
|
22,620
|
|
|
|
-
|
|
|
|
1,440
|
|
|
|
24,060
|
|
|
|
-
|
|
|
|
123
|
|
|
|
123
|
|
|
|
23,937
|
|
|
Mortgage mutual loans
|
|
|
110,659
|
|
|
|
-
|
|
|
|
4,419
|
|
|
|
115,078
|
|
|
|
-
|
|
|
|
594
|
|
|
|
594
|
|
|
|
114,484
|
|
|
Other mortgage mutual loans
|
|
|
8,501,072
|
|
|
|
-
|
|
|
|
456,685
|
|
|
|
8,957,757
|
|
|
|
-
|
|
|
|
68,349
|
|
|
|
68,349
|
|
|
|
8,889,408
|
|
|
Subtotal
|
|
|
8,634,351
|
|
|
|
-
|
|
|
|
462,544
|
|
|
|
9,096,895
|
|
|
|
-
|
|
|
|
69,066
|
|
|
|
69,066
|
|
|
|
9,027,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment consumer loans
|
|
|
2,613,041
|
|
|
|
-
|
|
|
|
297,701
|
|
|
|
2,910,742
|
|
|
|
-
|
|
|
|
240,962
|
|
|
|
240,962
|
|
|
|
2,669,780
|
|
|
Credit card balances
|
|
|
1,341,098
|
|
|
|
-
|
|
|
|
23,882
|
|
|
|
1,364,980
|
|
|
|
-
|
|
|
|
33,401
|
|
|
|
33,401
|
|
|
|
1,331,579
|
|
|
Leasing transactions
|
|
|
4,638
|
|
|
|
-
|
|
|
|
77
|
|
|
|
4,715
|
|
|
|
-
|
|
|
|
62
|
|
|
|
62
|
|
|
|
4,653
|
|
|
Other consumer loans
|
|
|
271,790
|
|
|
|
-
|
|
|
|
5,465
|
|
|
|
277,255
|
|
|
|
-
|
|
|
|
9,331
|
|
|
|
9,331
|
|
|
|
267,924
|
|
|
Subtotal
|
|
|
4,230,567
|
|
|
|
-
|
|
|
|
327,125
|
|
|
|
4,557,692
|
|
|
|
-
|
|
|
|
283,756
|
|
|
|
283,756
|
|
|
|
4,273,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
25,377,839
|
|
|
|
539,075
|
|
|
|
1,646,315
|
|
|
|
27,563,229
|
|
|
|
243,792
|
|
|
|
571,895
|
|
|
|
815,687
|
|
|
|
26,747,542
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
59
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
b)
|
Portfolio characteristics
|
As of December 31, 2018, and 2017, the portfolio before allowances is as follows, by customer's economic activity:
|
|
|
Domestic loans (*)
|
|
|
Foreign interbank loans (**)
|
|
|
Total loans
|
|
|
Distribution percentage
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
%
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
|
1,139,766
|
|
|
|
1,218,232
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,139,766
|
|
|
|
1,218,232
|
|
|
|
3.76
|
|
|
|
4.39
|
|
|
Mining
|
|
|
208,748
|
|
|
|
302,037
|
|
|
|
-
|
|
|
|
-
|
|
|
|
208,748
|
|
|
|
302,037
|
|
|
|
0.69
|
|
|
|
1.09
|
|
|
Electricity, gas, and water
|
|
|
408,932
|
|
|
|
336,048
|
|
|
|
-
|
|
|
|
-
|
|
|
|
408,932
|
|
|
|
336,048
|
|
|
|
1.35
|
|
|
|
1.21
|
|
|
Agriculture and livestock
|
|
|
1,206,197
|
|
|
|
1,114,597
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,206,197
|
|
|
|
1,114,597
|
|
|
|
3.98
|
|
|
|
4.02
|
|
|
Forest
|
|
|
143,888
|
|
|
|
98,941
|
|
|
|
-
|
|
|
|
-
|
|
|
|
143,888
|
|
|
|
98,941
|
|
|
|
0.48
|
|
|
|
0.36
|
|
|
Fishing
|
|
|
253,021
|
|
|
|
215,994
|
|
|
|
-
|
|
|
|
-
|
|
|
|
253,021
|
|
|
|
215,994
|
|
|
|
0.84
|
|
|
|
0.78
|
|
|
Transport
|
|
|
809,306
|
|
|
|
697,948
|
|
|
|
-
|
|
|
|
-
|
|
|
|
809,306
|
|
|
|
697,948
|
|
|
|
2.67
|
|
|
|
2.52
|
|
|
Communications
|
|
|
215,844
|
|
|
|
168,744
|
|
|
|
-
|
|
|
|
-
|
|
|
|
215,844
|
|
|
|
168,744
|
|
|
|
0.71
|
|
|
|
0.61
|
|
|
Construction
|
|
|
906,038
|
|
|
|
1,977,417
|
|
|
|
-
|
|
|
|
-
|
|
|
|
906,038
|
|
|
|
1,977,417
|
|
|
|
2.99
|
|
|
|
7.13
|
|
|
Commerce
|
|
|
3,386,806
|
|
|
|
3,131,870
|
|
|
|
15,093
|
|
|
|
162,685
|
|
|
|
3,401,899
|
|
|
|
3,294,555
|
|
|
|
11.23
|
|
|
|
11.88
|
|
|
Services
|
|
|
1,865,669
|
|
|
|
467,747
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,865,669
|
|
|
|
467,747
|
|
|
|
6.16
|
|
|
|
1.69
|
|
|
Other
|
|
|
4,695,445
|
|
|
|
4,179,067
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,695,445
|
|
|
|
4,179,067
|
|
|
|
15.52
|
|
|
|
15.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
15,239,660
|
|
|
|
13,908,642
|
|
|
|
15,093
|
|
|
|
162,685
|
|
|
|
15,254,753
|
|
|
|
14,071,327
|
|
|
|
50.38
|
|
|
|
50.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
|
10,150,981
|
|
|
|
9,096,895
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,150,981
|
|
|
|
9,096,895
|
|
|
|
33.52
|
|
|
|
32.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
4,876,289
|
|
|
|
4,557,692
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,876,289
|
|
|
|
4,557,692
|
|
|
|
16.10
|
|
|
|
16.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
30,266,930
|
|
|
|
27,563,229
|
|
|
|
15,093
|
|
|
|
162,685
|
|
|
|
30,282,023
|
|
|
|
27,725,914
|
|
|
|
100.0
|
|
|
|
100.00
|
|
(*) Includes domestic interbank loans for Ch$1 million
as of December 31, 2018 (Ch$0 million as of December 31, 2017), see Note 9.
(**) Includes foreign interbank loans for Ch$15,093
million as of December 31, 2018 (Ch$162,685 million as of December 31, 2017), see Note 9.
Consolidated Financial Statements December 2018 / Banco Santander Chile
60
Banco
Santander Chile and Subsidiaries
Notes
to the Consolidated Financial Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
c)
|
Impaired portfolio (*)
|
i.
As of December 31, 2018 and 2017,
the impaired portfolio is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Individually impaired portfolio
|
|
|
397,978
|
|
|
|
-
|
|
|
|
-
|
|
|
|
397,978
|
|
|
|
427,890
|
|
|
|
-
|
|
|
|
-
|
|
|
|
427,890
|
|
|
Non-performing loans (collectively evaluated)
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
|
|
368,522
|
|
|
|
161,768
|
|
|
|
103,171
|
|
|
|
633,461
|
|
|
Other impaired portfolio
|
|
|
224,750
|
|
|
|
338,785
|
|
|
|
186,277
|
|
|
|
749,812
|
|
|
|
217,091
|
|
|
|
300,776
|
|
|
|
223,954
|
|
|
|
741,821
|
|
|
Total
|
|
|
1,032,179
|
|
|
|
472,665
|
|
|
|
274,595
|
|
|
|
1,779,439
|
|
|
|
1,013,503
|
|
|
|
462,544
|
|
|
|
327,125
|
|
|
|
1,803,172
|
|
(*) The impaired portfolio
corresponds to the sum of the loans classified as substandard in categories B3 and B4, and the portfolio in default, (C1-C6).
|
|
ii)
|
The impaired portfolio with or without guarantee as of
December 31, 2018 and 2017 is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Secured debt
|
|
|
604,545
|
|
|
|
430,011
|
|
|
|
29,201
|
|
|
|
1,063,757
|
|
|
|
582,557
|
|
|
|
413,716
|
|
|
|
34,260
|
|
|
|
1,030,533
|
|
|
Unsecured debt
|
|
|
427,634
|
|
|
|
42,654
|
|
|
|
245,394
|
|
|
|
715,682
|
|
|
|
430,946
|
|
|
|
48,828
|
|
|
|
292,865
|
|
|
|
772,639
|
|
|
Total
|
|
|
1,032,179
|
|
|
|
472,665
|
|
|
|
274,595
|
|
|
|
1,779,439
|
|
|
|
1,013,503
|
|
|
|
462,544
|
|
|
|
327,125
|
|
|
|
1,803,172
|
|
iii)
The portfolio
of non-performing loans (due for 90 days or longer) with or without a guarantee as of December 31, 2018 and 2017 is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Secured debt
|
|
|
192,889
|
|
|
|
121,690
|
|
|
|
8,516
|
|
|
|
323,095
|
|
|
|
167,909
|
|
|
|
141,413
|
|
|
|
8,896
|
|
|
|
318,218
|
|
|
Unsecured debt
|
|
|
216,562
|
|
|
|
12,190
|
|
|
|
79,802
|
|
|
|
308,554
|
|
|
|
200,613
|
|
|
|
20,355
|
|
|
|
94,275
|
|
|
|
315,243
|
|
|
Total
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
|
|
368,522
|
|
|
|
161,768
|
|
|
|
103,171
|
|
|
|
633,461
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
61
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
iv)
|
Reconciliation of non-performing loans, with past due loans
as of December 31, 2018 and 2017, is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
with arrears equal to or greater than 90 days
|
|
|
399,382
|
|
|
|
130,716
|
|
|
|
85,137
|
|
|
|
615,235
|
|
|
|
362,968
|
|
|
|
159,265
|
|
|
|
92,541
|
|
|
|
614,774
|
|
|
with arrears up to 89 days, classified in past due portfolio
|
|
|
10,069
|
|
|
|
3,164
|
|
|
|
3,181
|
|
|
|
16,414
|
|
|
|
5,554
|
|
|
|
2,503
|
|
|
|
10,630
|
|
|
|
18,687
|
|
|
Total
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
|
|
368,522
|
|
|
|
161,768
|
|
|
|
103,171
|
|
|
|
633,461
|
|
The changes in allowances balances during 2018 and 2017 are
as follows:
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
|
Activity during 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January, 2018
|
|
|
243,792
|
|
|
|
219,073
|
|
|
|
69,066
|
|
|
|
283,756
|
|
|
|
815,687
|
|
|
Allowances established
|
|
|
68,302
|
|
|
|
83,979
|
|
|
|
22,683
|
|
|
|
190,868
|
|
|
|
365,832
|
|
|
Allowances released
|
|
|
(35,301
|
)
|
|
|
(8,764
|
)
|
|
|
(8,446
|
)
|
|
|
(45,031
|
)
|
|
|
(97,542
|
)
|
|
Allowances released due to charge-off
|
|
|
(34,196
|
)
|
|
|
(64,009
|
)
|
|
|
(19,062
|
)
|
|
|
(170,151
|
)
|
|
|
(287,418
|
)
|
|
Balance as of December 31, 2018
|
|
|
242,597
|
|
|
|
230,279
|
|
|
|
64,241
|
|
|
|
259,442
|
|
|
|
796,559
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
|
Activity during 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January, 2017
|
|
|
275,973
|
|
|
|
183,106
|
|
|
|
61,041
|
|
|
|
300,019
|
|
|
|
820,139
|
|
|
Allowances established
|
|
|
60,023
|
|
|
|
99,407
|
|
|
|
22,163
|
|
|
|
157,595
|
|
|
|
339,188
|
|
|
Allowances released
|
|
|
(55,925
|
)
|
|
|
(20,491
|
)
|
|
|
(11,427
|
)
|
|
|
(46,089
|
)
|
|
|
(133,932
|
)
|
|
Allowances released due to charge-off
|
|
|
(36,279
|
)
|
|
|
(42,949
|
)
|
|
|
(2,711
|
)
|
|
|
(127,769
|
)
|
|
|
(209,708
|
)
|
|
Balance as of December 31, 2017
|
|
|
243,792
|
|
|
|
219,073
|
|
|
|
69,066
|
|
|
|
283,756
|
|
|
|
815,687
|
|
In addition to credit risk allowances, there are
other allowances held for:
|
|
i)
|
Country risk to cover the risk taken when holding or committing resources with any foreign country, these
allowances are established according to country risk classifications as set forth in Chapter 7-13 of the Updated Compilation of
Rules, issued by the SBIF. The balances of allowances as of December 31, 2018 and 2017 are Ch$620 million and Ch$599 million, respectively,
which are presented in liabilities of the Consolidated Statement of Financial Position.
|
|
|
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
62
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS, continued
|
|
ii)
|
According to SBIF's regulations (compendium of Accounting
Standards), the Bank has established allowances related to the undrawn available credit lines and contingent loans. The balances
of allowances as of December 31, 2018 and 2017 are Ch$14,666 million and Ch$15,103 million, respectively, and are presented in
liabilities of the Consolidated Statement of Financial Position.
|
Allowances established
The following chart shows the balance of provisions established, associated with loans and accounts receivable
from costumers and Interbank loans:
|
|
|
As of
|
|
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivable from
|
|
|
365,832
|
|
|
|
339,188
|
|
|
Interbank loans costumers
|
|
|
45
|
|
|
|
307
|
|
|
Total
|
|
|
365,877
|
|
|
|
339,495
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
63
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
e)
|
Portfolio by its impaired and non-impaired status
|
|
|
|
As of December 31, 2018
|
|
|
|
|
Non-impaired
|
|
|
Impaired
|
|
|
Total portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
portfolio
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portfolio
|
|
|
14,016,945
|
|
|
|
9,360,102
|
|
|
|
4,379,507
|
|
|
|
27,756,554
|
|
|
|
446,423
|
|
|
|
156,546
|
|
|
|
95,220
|
|
|
|
698,189
|
|
|
|
14,463,368
|
|
|
|
9,516,648
|
|
|
|
4,474,727
|
|
|
|
28,454,743
|
|
|
Overdue for 1-29 days
|
|
|
120,376
|
|
|
|
194,334
|
|
|
|
131,550
|
|
|
|
446,260
|
|
|
|
72,964
|
|
|
|
78,537
|
|
|
|
34,501
|
|
|
|
186,002
|
|
|
|
193,340
|
|
|
|
272,871
|
|
|
|
166,051
|
|
|
|
632,262
|
|
|
Overdue for 30-89 days
|
|
|
70,159
|
|
|
|
123,880
|
|
|
|
90,637
|
|
|
|
284,676
|
|
|
|
113,410
|
|
|
|
106,866
|
|
|
|
59,737
|
|
|
|
280,013
|
|
|
|
183,569
|
|
|
|
230,746
|
|
|
|
150,374
|
|
|
|
564,689
|
|
|
Overdue for 90 days or more
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
399,382
|
|
|
|
130,716
|
|
|
|
85,137
|
|
|
|
615,235
|
|
|
|
399,382
|
|
|
|
130,716
|
|
|
|
85,137
|
|
|
|
615,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio before allowances
|
|
|
14,207,480
|
|
|
|
9,678,316
|
|
|
|
4,601,694
|
|
|
|
28,487,490
|
|
|
|
1,032,179
|
|
|
|
472,665
|
|
|
|
274,595
|
|
|
|
1,779,439
|
|
|
|
15,239,659
|
|
|
|
10,150,981
|
|
|
|
4,876,289
|
|
|
|
30,266,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (less than 90 days) presented as portfolio percentage
|
|
|
1.34
|
%
|
|
|
3.29
|
%
|
|
|
4.83
|
%
|
|
|
2.57
|
%
|
|
|
18.06
|
%
|
|
|
39.23
|
%
|
|
|
34.32
|
%
|
|
|
26.19
|
%
|
|
|
2.47
|
%
|
|
|
4.96
|
%
|
|
|
6.49
|
%
|
|
|
3.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (90 days or more) presented as portfolio percentage
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38.69
|
%
|
|
|
27.66
|
%
|
|
|
31.00
|
%
|
|
|
34.57
|
%
|
|
|
2.62
|
%
|
|
|
1.29
|
%
|
|
|
1.75
|
%
|
|
|
2.03
|
%
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
64
Banco
Santander Chile and Subsidiaries
Notes
to the Consolidated Financial Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 10
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS,
continued
|
|
e)
|
Portfolio by its impaired and non-impaired status, continuation.
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Non-impaired
|
|
|
Impaired
|
|
|
Total portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
impaired
|
|
|
Commercial Mortgage Consumer
|
|
|
portfolio
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portfolio
|
|
|
12,737,508
|
|
|
|
8,357,733
|
|
|
|
4,012,490
|
|
|
|
25,107,731
|
|
|
|
449,895
|
|
|
|
158,770
|
|
|
|
110,183
|
|
|
|
718,848
|
|
|
|
13,187,403
|
|
|
|
8,516,503
|
|
|
|
4,122,673
|
|
|
|
25,826,579
|
|
|
Overdue for 1-29 days
|
|
|
103,908
|
|
|
|
180,294
|
|
|
|
132,136
|
|
|
|
416,338
|
|
|
|
110,834
|
|
|
|
74,072
|
|
|
|
46,283
|
|
|
|
231,189
|
|
|
|
214,742
|
|
|
|
254,366
|
|
|
|
178,419
|
|
|
|
647,527
|
|
|
Overdue for 30-89 days
|
|
|
53,723
|
|
|
|
96,324
|
|
|
|
85,941
|
|
|
|
235,988
|
|
|
|
89,806
|
|
|
|
70,437
|
|
|
|
78,118
|
|
|
|
238,361
|
|
|
|
143,529
|
|
|
|
166,761
|
|
|
|
164,059
|
|
|
|
474,349
|
|
|
Overdue for 90 days or more
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
362,968
|
|
|
|
159,265
|
|
|
|
92,541
|
|
|
|
614,774
|
|
|
|
362,968
|
|
|
|
159,265
|
|
|
|
92,541
|
|
|
|
614,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio before allowances
|
|
|
12,895,139
|
|
|
|
8,634,351
|
|
|
|
4,230,567
|
|
|
|
25,760,057
|
|
|
|
1,013,503
|
|
|
|
462,544
|
|
|
|
327,125
|
|
|
|
1,803,172
|
|
|
|
13,908,642
|
|
|
|
9,096,895
|
|
|
|
4,557,692
|
|
|
|
27,563,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (less than 90 days) presented as portfolio percentage
|
|
|
1.22
|
%
|
|
|
3.20
|
%
|
|
|
5.15
|
%
|
|
|
2.53
|
%
|
|
|
19.80
|
%
|
|
|
31.24
|
%
|
|
|
38.03
|
%
|
|
|
26.04
|
%
|
|
|
2.58
|
%
|
|
|
4.63
|
%
|
|
|
7.51
|
%
|
|
|
4.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (90 days or more) presented as portfolio percentage
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
35.81
|
%
|
|
|
34.43
|
%
|
|
|
28.29
|
%
|
|
|
34.09
|
%
|
|
|
2.61
|
%
|
|
|
1.75
|
%
|
|
|
2.03
|
%
|
|
|
2.23
|
%
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
65
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 11
AVAILABLE FOR SALE INVESTMENTS
As of December 31, 2018, and 2017, details of instruments defined as available for sale investments are as
follows:
|
|
|
As of
|
|
|
|
|
December 31
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank and Government securities
|
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
657,096
|
|
|
|
816,331
|
|
|
Chilean Central Bank Notes
|
|
|
56,719
|
|
|
|
330,952
|
|
|
Other Chilean Central Bank and Government securities
|
|
|
1,207,221
|
|
|
|
1,115,518
|
|
|
Subtotal
|
|
|
1,921,036
|
|
|
|
2,262,801
|
|
|
Other Chilean securities
|
|
|
|
|
|
|
|
|
|
Time deposits in Chilean financial institutions
|
|
|
2,693
|
|
|
|
2,361
|
|
|
Mortgage finance bonds of Chilean financial institutions
|
|
|
19,227
|
|
|
|
22,312
|
|
|
Chilean financial institution bonds
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
2,907
|
|
|
|
3,000
|
|
|
Subtotal
|
|
|
24,827
|
|
|
|
27,673
|
|
|
Foreign financial securities
|
|
|
|
|
|
|
|
|
|
Foreign Central Banks and Government securities
|
|
|
280,622
|
|
|
|
132,822
|
|
|
Other foreign financial securities
|
|
|
167,838
|
|
|
|
151,250
|
|
|
Subtotal
|
|
|
448,460
|
|
|
|
284,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,394,323
|
|
|
|
2,574,546
|
|
As of December 31, 2018, and 2017, the item
Chilean Central Bank and Government securities
item includes securities sold under repurchase agreements to clients and
financial institutions for Ch$16,109 million and Ch$241,995 million, respectively. Under the same line, there are instruments that
guarantee margins for operations of derivatives through Comder Contraparte Central S.A. for an amount of $48,081 million and $
42,910 million as of December 31 of 2018 and 2017, respectively.
As of December 31, 2018, and 2017, the item
Other Chilean Securities
includes securities sold to customers and financial institutions under repurchase agreements totaling
Ch$32,436 million and Ch$1,156 million, respectively.
The instruments of Foreign Institutions
include instruments sold under repurchase agreements with customers and financial institutions for a total of $0 and $ 24,910 million
as of December 31, 2018 and 2017, respectively. Under the same line, there are instruments that guarantee margins for derivative
transactions through the London Clearing House (LCH) for an amount of $58,892 million and $48,106 million as of December 31, 2018
and 2017, respectively, In order to comply with the initial margin specified in the European EMIR standard, instruments in guarantee
with Euroclear are maintained for an amount of $98,832 million and $ 33,711 million as of December 31, 2018 and 2017, respectively.
As of December 31, 2018, available for sale
investments included a net unrealized profit of Ch$6,424 million, recorded as a "Valuation adjustment" in Equity, distributed
between a profit of Ch$5,144 million attributable to equity holders of the Bank and a profit of Ch$1,310 million attributable to
non-controlling interest.
As of December 31, 2017, available for sale
investments included a net unrealized loss of Ch$1,855 million, recorded as a "Valuation adjustment" in Equity, distributed
between a profit of Ch$459 million attributable to equity holders of the Bank and a profit of Ch$1,396 million attributable to
non-controlling interest.
Consolidated Financial Statements December 2018 / Banco Santander Chile
66
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°11
AVAILABLE FOR SALE INVESTMENTS, continued
Gross profits and losses realized on the sale
of available for sale investments as of December 31, 2018 and 2017, are as follow,
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Sale of available for sale investments generating realized profits
|
|
|
3,505,266
|
|
|
|
6,469,344
|
|
|
Realized profits
|
|
|
8,902
|
|
|
|
4,867
|
|
|
Sale of available for sale investments generating realized losses
|
|
|
709,371
|
|
|
|
466,732
|
|
|
Realized losses
|
|
|
6,004
|
|
|
|
3
|
|
The Bank evaluated those instruments with unrealized losses as of December 31, 2018 and 2017 and concluded
they were not impaired. This review consisted of evaluation the economic reason for any declines, the credit rating of the securities
issuers and the bank's intention and ability to hold the securities until the unrealized kiss us recovered. Based in this analysis,
the Bank believes that there were no significant or prolonged declines nor changes in credit risk which would cause impairment
in its investment portfolio, since most of the decline in fair value of these instruments was caused by market conditions which
the Bank considers to be temporary. All of the instruments that have unrealized losses as of December 31, 2018 and 2017, were not
in a continuous unrealized loss position for more than one year.
Consolidated Financial Statements December 2018 / Banco Santander Chile
67
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°11
AVAILABLE FOR SALE INVESTMENTS, continued
The following charts show the available for sale investments
cumulative unrealized profit and loss, as of December 31, 2018 and 2017:
As of December 31, 2018:
|
|
|
Less than 12 months
|
|
|
More than 12 months
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
|
|
|
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Amortized
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Amortized
|
|
|
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
|
|
cost
|
|
|
Fair value
|
|
|
profit
|
|
|
loss
|
|
|
cost
|
|
|
value
|
|
|
profit
|
|
|
loss
|
|
|
cost
|
|
|
Fair value
|
|
|
profit
|
|
|
loss
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean central bank and government securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean central bank fond
|
|
|
658,013
|
|
|
|
657,096
|
|
|
|
3,698
|
|
|
|
(4,615
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
658,013
|
|
|
|
657,096
|
|
|
|
3,698
|
|
|
|
(4,615
|
)
|
|
Chilean central bank notes
|
|
|
56,737
|
|
|
|
56,719
|
|
|
|
10
|
|
|
|
(27
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
56,737
|
|
|
|
56,719
|
|
|
|
10
|
|
|
|
(27
|
)
|
|
Other Chilean central bank and government securities
|
|
|
1,196,819
|
|
|
|
1.207,220
|
|
|
|
10.689
|
|
|
|
(262
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,196,819
|
|
|
|
1.207,220
|
|
|
|
10,689
|
|
|
|
(262
|
)
|
|
Subtotal
|
|
|
1,911,569
|
|
|
|
1,921,035
|
|
|
|
14,397
|
|
|
|
(4,904
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,911,569
|
|
|
|
1,921,035
|
|
|
|
14,397
|
|
|
|
(4,904
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Chilean securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits in Chilean financial institutions
|
|
|
2,692
|
|
|
|
2,694
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,692
|
|
|
|
2,694
|
|
|
|
1
|
|
|
|
-
|
|
|
Mortgage finance bonds of Chilean financial institutions
|
|
|
19,010
|
|
|
|
19,227
|
|
|
|
426
|
|
|
|
(209
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,010
|
|
|
|
19,227
|
|
|
|
426
|
|
|
|
(209
|
)
|
|
Chilean financial institution bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
220
|
|
|
|
2,907
|
|
|
|
2,687
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
220
|
|
|
|
2,907
|
|
|
|
2,687
|
|
|
|
-
|
|
|
Subtotal
|
|
|
21,922
|
|
|
|
24,828
|
|
|
|
3,114
|
|
|
|
(209
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,922
|
|
|
|
24,828
|
|
|
|
3,114
|
|
|
|
(209
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign financial securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign central bank and government securities
|
|
|
280,021
|
|
|
|
280,622
|
|
|
|
602
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
280,021
|
|
|
|
280,622
|
|
|
|
602
|
|
|
|
-
|
|
|
Other Foreign securities
|
|
|
174,387
|
|
|
|
167,838
|
|
|
|
-
|
|
|
|
(6,575
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
174,387
|
|
|
|
167,838
|
|
|
|
-
|
|
|
|
(6,575
|
)
|
|
Subtotal
|
|
|
454,408
|
|
|
|
448,460
|
|
|
|
602
|
|
|
|
(6,575
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
454,408
|
|
|
|
448,460
|
|
|
|
602
|
|
|
|
(6,575
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,387,899
|
|
|
|
2,394,323
|
|
|
|
18,112
|
|
|
|
(11,688
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,387,899
|
|
|
|
2,394,323
|
|
|
|
18,112
|
|
|
|
(11,688
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
68
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°11
AVAILABLE FOR SALE INVESTMENTS, continued
The following tables show the availability for sale of accumulated
unrealized gains and losses as of December 31, 2017:
As of December 31, 2017
|
|
|
Under12
months
|
|
|
Over
12 months
|
|
|
Total
|
|
|
|
|
Amortized
|
|
|
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Amortized
|
|
|
Fair
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Amortized
|
|
|
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
|
|
cost
|
|
|
Fair
value
|
|
|
profit
|
|
|
loss
|
|
|
cost
|
|
|
value
|
|
|
profit
|
|
|
loss
|
|
|
cost
|
|
|
Fair
value
|
|
|
profit
|
|
|
loss
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean central bank and government securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chilean central bank fond
|
|
|
816,164
|
|
|
|
816,331
|
|
|
|
5,513
|
|
|
|
(5,346
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
816,164
|
|
|
|
816,331
|
|
|
|
5,513
|
|
|
|
(5,346
|
)
|
|
Chilean central bank notes
|
|
|
330,923
|
|
|
|
330,952
|
|
|
|
30
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
330,923
|
|
|
|
330,952
|
|
|
|
30
|
|
|
|
(1
|
)
|
|
Other Chilean central
bank and government securities
|
|
|
1,117,447
|
|
|
|
1,115,518
|
|
|
|
2,960
|
|
|
|
(4,888
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,117,447
|
|
|
|
1,115,518
|
|
|
|
2,960
|
|
|
|
(4,888
|
)
|
|
Subtotal
|
|
|
2,264,534
|
|
|
|
2,262,801
|
|
|
|
8,503
|
|
|
|
(10,235
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,264,534
|
|
|
|
2,262,801
|
|
|
|
8,503
|
|
|
|
(10,235
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Chilean securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits in Chilean financial institutions
|
|
|
2,361
|
|
|
|
2,361
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,361
|
|
|
|
2,361
|
|
|
|
-
|
|
|
|
-
|
|
|
Mortgage finance bonds of Chilean financial
institutions
|
|
|
21,867
|
|
|
|
22,312
|
|
|
|
445
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,867
|
|
|
|
22,312
|
|
|
|
445
|
|
|
|
-
|
|
|
Chilean financial institution bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other Chilean securities
|
|
|
220
|
|
|
|
3,000
|
|
|
|
2,780
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
220
|
|
|
|
3,000
|
|
|
|
2,780
|
|
|
|
-
|
|
|
Subtotal
|
|
|
24,448
|
|
|
|
27,673
|
|
|
|
3,225
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24,448
|
|
|
|
27,673
|
|
|
|
3,225
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign financial securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign central bank and government securities
|
|
|
133,301
|
|
|
|
132,822
|
|
|
|
847
|
|
|
|
(1,326
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
133,301
|
|
|
|
132,822
|
|
|
|
847
|
|
|
|
(1,326
|
)
|
|
Other Foreign securities
|
|
|
150,408
|
|
|
|
151,250
|
|
|
|
1,097
|
|
|
|
(256
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
150,408
|
|
|
|
151,250
|
|
|
|
1,097
|
|
|
|
(256
|
)
|
|
Subtotal
|
|
|
283,709
|
|
|
|
284,072
|
|
|
|
1,944
|
|
|
|
(1,582
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
283,709
|
|
|
|
284,072
|
|
|
|
1,944
|
|
|
|
(1,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,572,691
|
|
|
|
2,574,546
|
|
|
|
13,672
|
|
|
|
(11,817
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,572,691
|
|
|
|
2,574,546
|
|
|
|
13,672
|
|
|
|
(11,817
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
69
Banco Santander Chile and Subsidiaries
Notes
to the Consolidated Financial Statements
AS
OF DECEMBER 31, 2018, AND 2017
NOTE 12
INVESTMENTS IN ASSOCIATES AND OTHER
COMPANIES
|
|
a)
|
The Consolidated Statements of Financial Position reflect
investments in associates and other companies amounting to Ch$32,293 million as of December 31, 2018, Ch$ 27,585 million as of
December 2017, as show in the following table:
|
|
|
|
|
|
|
|
|
|
Investment
|
|
|
|
|
Ownership interest
|
|
|
Investment value
|
|
|
Profit and loss
|
|
|
|
|
As of December 31,
|
|
|
As of December 31,
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redbanc S.A.
|
|
|
33,43
|
|
|
|
33,43
|
|
|
|
2,822
|
|
|
|
2,537
|
|
|
|
285
|
|
|
|
353
|
|
|
Transbank S.A.
|
|
|
25,00
|
|
|
|
25,00
|
|
|
|
17,651
|
|
|
|
14,534
|
|
|
|
3,118
|
|
|
|
2,024
|
|
|
Centro de Compensación Automatizado S.A.
|
|
|
33,33
|
|
|
|
33,33
|
|
|
|
1,894
|
|
|
|
1,589
|
|
|
|
305
|
|
|
|
236
|
|
|
Sociedad Interbancaria de Depósito de Valores S.A.
|
|
|
29,29
|
|
|
|
29,29
|
|
|
|
1,233
|
|
|
|
1,087
|
|
|
|
223
|
|
|
|
235
|
|
|
Cámara de Compensación de Pagos de Alto Valor S.A. (1)
|
|
|
15,00
|
|
|
|
15,00
|
|
|
|
945
|
|
|
|
909
|
|
|
|
58
|
|
|
|
66
|
|
|
Administrador Financiero del Transantiago S.A.
|
|
|
20,00
|
|
|
|
20,00
|
|
|
|
3,680
|
|
|
|
3,098
|
|
|
|
582
|
|
|
|
317
|
|
|
Sociedad Nexus S.A.
|
|
|
12,90
|
|
|
|
12,90
|
|
|
|
2,279
|
|
|
|
1,911
|
|
|
|
368
|
|
|
|
442
|
|
|
Servicios de Infraestructura de Mercado OTC S.A.
|
|
|
12,48
|
|
|
|
12,48
|
|
|
|
1,491
|
|
|
|
1,489
|
|
|
|
57
|
|
|
|
115
|
|
|
Subtotal
|
|
|
|
|
|
|
|
|
|
|
31,995
|
|
|
|
27,154
|
|
|
|
4,996
|
|
|
|
3,788
|
|
|
Shares or rights in other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bladex
|
|
|
|
|
|
|
|
|
|
|
136
|
|
|
|
136
|
|
|
|
19
|
|
|
|
25
|
|
|
Stock Exchanges
|
|
|
|
|
|
|
|
|
|
|
154
|
|
|
|
287
|
|
|
|
148
|
|
|
|
150
|
|
|
Others
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
8
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
32,293
|
|
|
|
27,585
|
|
|
|
5,095
|
|
|
|
3,963
|
|
|
|
(1)
|
During the year 2017, the entities Rabobank Chile in Liquidation and Banco París, assigned to Banco
Santander a portion of its participation in "Sociedad Operadora de la Cámara de Compensación de Pagos de Alto
Valor S.A." at 0.01% and 0,06% respectively, with which the Bank's participation increased to 15.00%.
|
|
|
b)
|
Investments in associates and other companies do not have
market prices.
|
|
|
c)
|
Summary of financial information of the partners between
exercises 2018 and 2017:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Equity
|
|
|
Income
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Equity
|
|
|
Income
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centro de Compensación Automatizado S.A.
|
|
|
7,073
|
|
|
|
1,480
|
|
|
|
4,677
|
|
|
|
916
|
|
|
|
6,871
|
|
|
|
2,174
|
|
|
|
3,989
|
|
|
|
708
|
|
|
Redbanc S.A.
|
|
|
20,825
|
|
|
|
12,469
|
|
|
|
7,505
|
|
|
|
851
|
|
|
|
21,235
|
|
|
|
13,751
|
|
|
|
6,428
|
|
|
|
1,056
|
|
|
Transbank S.A.
|
|
|
904,558
|
|
|
|
835,200
|
|
|
|
56,888
|
|
|
|
12,470
|
|
|
|
822,487
|
|
|
|
765,683
|
|
|
|
48,709
|
|
|
|
8,095
|
|
|
Sociedad Interbancaria de Depósito de Valores S.A.
|
|
|
4,392
|
|
|
|
230
|
|
|
|
3,400
|
|
|
|
762
|
|
|
|
3,720
|
|
|
|
60
|
|
|
|
2,858
|
|
|
|
802
|
|
|
Sociedad Nexus S.A.
|
|
|
35,139
|
|
|
|
18,335
|
|
|
|
13,995
|
|
|
|
2,849
|
|
|
|
32,669
|
|
|
|
18,888
|
|
|
|
10,354
|
|
|
|
3,427
|
|
|
Servicios de Infraestructura de Mercado OTC S.A.
|
|
|
25,273
|
|
|
|
13,313
|
|
|
|
11,506
|
|
|
|
454
|
|
|
|
17,913
|
|
|
|
6,414
|
|
|
|
10,963
|
|
|
|
536
|
|
|
Administrador Financiero del Transantiago S.A.
|
|
|
55,818
|
|
|
|
37,419
|
|
|
|
15,490
|
|
|
|
2,909
|
|
|
|
51,304
|
|
|
|
35,814
|
|
|
|
13,907
|
|
|
|
1,583
|
|
|
Cámara de Compensación de Pagos de Alto Valor S.A.
|
|
|
6,728
|
|
|
|
622
|
|
|
|
5,722
|
|
|
|
384
|
|
|
|
6,338
|
|
|
|
500
|
|
|
|
5,399
|
|
|
|
439
|
|
|
Total
|
|
|
1,059,806
|
|
|
|
919,068
|
|
|
|
119,143
|
|
|
|
21,595
|
|
|
|
962,537
|
|
|
|
843,284
|
|
|
|
102,607
|
|
|
|
16,646
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
70
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 12
INVESTMENTS IN ASSOCIATES AND OTHER COMPANIES, continued
|
|
d)
|
Restriction on the ability of partners to transfer funds
to investors,
|
There is no significant restriction in relation to the ability of the associates to transfer funds in the
form of dividends in Cash or reimbursements of loans or advances, to the bank,
|
|
e)
|
Activity with respect to investments in other companies
during 2018 and 2017, is as follow:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Opening balance as of January 1,
|
|
|
27,585
|
|
|
|
23,780
|
|
|
Acquisition of investments (*)
|
|
|
-
|
|
|
|
3
|
|
|
Sale of investments
|
|
|
-
|
|
|
|
-
|
|
|
Participation in income (*)
|
|
|
5,095
|
|
|
|
3,963
|
|
|
Dividends received
|
|
|
(38
|
)
|
|
|
(116
|
)
|
|
Other equity adjustment
|
|
|
(349
|
)
|
|
|
(45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
32,293
|
|
|
|
27,585
|
|
(*) See letter a), reference (1).
Consolidated Financial Statements December 2018 / Banco Santander Chile
71
Banco Santander Chile and
Subsidiaries
Notes to the Consolidated
Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 13
INTANGIBLE ASSETS
|
|
a)
|
As of December
31, 2018, and 2017 the composition of intangible assets is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
Net opening
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
balance as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years of
|
|
|
Average
|
|
|
January 1,
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
useful
|
|
|
remaining useful
|
|
|
2018
|
|
|
Gross balance
|
|
|
amortization
|
|
|
Net balance
|
|
|
|
|
life
|
|
|
life
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses
|
|
|
3
|
|
|
|
1
|
|
|
|
1,200
|
|
|
|
10,932
|
|
|
|
(9,956
|
)
|
|
|
976
|
|
|
Software development
|
|
|
3
|
|
|
|
2
|
|
|
|
62,019
|
|
|
|
342,112
|
|
|
|
(276,165
|
)
|
|
|
65,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
|
|
|
|
|
|
|
|
63,219
|
|
|
|
353,044
|
|
|
|
(286,121
|
)
|
|
|
66,923
|
|
|
Fully amortized assets
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(245,242
|
)
|
|
|
245,242
|
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
63,219
|
|
|
|
107,802
|
|
|
|
(40,879
|
)
|
|
|
66,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Net opening
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
balance as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years of
|
|
|
Average
|
|
|
January 1,
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
useful
|
|
|
remaining useful
|
|
|
2017
|
|
|
Gross balance
|
|
|
amortization
|
|
|
Net balance
|
|
|
|
|
life
|
|
|
life
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses
|
|
|
3
|
|
|
|
1
|
|
|
|
1,656
|
|
|
|
10,932
|
|
|
|
(9,732
|
)
|
|
|
1,200
|
|
|
Software development
|
|
|
3
|
|
|
|
2
|
|
|
|
56,429
|
|
|
|
314,115
|
|
|
|
(252,096
|
)
|
|
|
62,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
|
|
|
|
|
|
|
|
58,085
|
|
|
|
325,047
|
|
|
|
(261,828
|
)
|
|
|
63,219
|
|
|
Fully amortized assets
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(200,774
|
)
|
|
|
200,774
|
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
58,085
|
|
|
|
124,273
|
|
|
|
(61,054
|
)
|
|
|
63,219
|
|
|
|
b)
|
The changes in the value of intangible assets during
the periods December 31, 2018 and 2017 is as follows:
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
amortized
|
|
|
|
|
|
|
|
Licenses
|
|
|
development
|
|
|
assets
|
|
|
Total
|
|
|
Gross balances
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Balances as of January 1, 2018
|
|
|
10,932
|
|
|
|
314,115
|
|
|
|
(200,774
|
)
|
|
|
124,273
|
|
|
Acquisitions
|
|
|
-
|
|
|
|
29,563
|
|
|
|
-
|
|
|
|
29,563
|
|
|
Disposals and impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
-
|
|
|
|
(1,566
|
)
|
|
|
(44,468
|
)
|
|
|
(46,034
|
)
|
|
Balances as of December 31, 2018
|
|
|
10,932
|
|
|
|
342,112
|
|
|
|
(245,242
|
)
|
|
|
107,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
10,932
|
|
|
|
286,781
|
|
|
|
(200,774
|
)
|
|
|
96,939
|
|
|
Acquisitions
|
|
|
-
|
|
|
|
32,624
|
|
|
|
-
|
|
|
|
32,624
|
|
|
Disposals and impairment
|
|
|
-
|
|
|
|
(5,290
|
)
|
|
|
-
|
|
|
|
(5,290
|
)
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Balances as of December 31, 2017
|
|
|
10,932
|
|
|
|
314,115
|
|
|
|
(200,774
|
)
|
|
|
124,273
|
|
(*) See Note No. 34, letter a).
Consolidated Financial Statements December 2018 / Banco Santander Chile
72
Banco Santander Chile and
Subsidiaries
Notes to the Consolidated
Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 13
INTANGIBLE ASSETS, continued
|
|
b.2)
|
Accumulated amortization
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
amortized
|
|
|
|
|
|
|
|
Licenses
|
|
|
development
|
|
|
assets
|
|
|
Total
|
|
|
Accumulated amortization
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
(9,732
|
)
|
|
|
(252,096
|
)
|
|
|
200,774
|
|
|
|
(61,054
|
)
|
|
Amortization for the period
|
|
|
(224
|
)
|
|
|
(24,069
|
)
|
|
|
-
|
|
|
|
(24,293
|
)
|
|
Other changes
|
|
|
-
|
|
|
|
-
|
|
|
|
44,468
|
|
|
|
44,468
|
|
|
Balances as of December 31, 2018
|
|
|
(9,956
|
)
|
|
|
(276,165
|
)
|
|
|
245,242
|
|
|
|
(40,879
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
(9,276
|
)
|
|
|
(230,352
|
)
|
|
|
200,774
|
|
|
|
(38,854
|
)
|
|
Amortization for the period
|
|
|
(456
|
)
|
|
|
(21,744
|
)
|
|
|
-
|
|
|
|
(22,200
|
)
|
|
Other changes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Balances as of December 31, 2017
|
|
|
(9,732
|
)
|
|
|
(252,096
|
)
|
|
|
200,774
|
|
|
|
(61,054
|
)
|
|
|
c)
|
The Bank has no restriction on intangible assets as of
December 31, 2018 and 2017, Additionally, the intangible assets have not been pledged as guarantee to secure compliance with financial
liabilities. Also, the Bank has no debt related to Intangible assets as of those dates.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
73
Banco Santander Chile and
Subsidiaries
Notes to the Consolidated
Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 14
PROPERTY, PLANT, AND EQUIPMENT
|
|
a)
|
As
of December 31, 2018, and 2017 the property, plant and equipment balances is as follows:
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
|
Net opening
|
|
|
|
|
|
|
|
|
|
|
|
|
|
balance as of
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net
|
|
|
|
|
January 1, 2018
|
|
|
balance
|
|
|
depreciation
|
|
|
balance
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and building
|
|
|
159,352
|
|
|
|
309,385
|
|
|
|
(132,428
|
)
|
|
|
176,957
|
|
|
Equipment
|
|
|
63,516
|
|
|
|
217,958
|
|
|
|
(159,756
|
)
|
|
|
58,202
|
|
|
Ceded under operating leases
|
|
|
4,221
|
|
|
|
4,888
|
|
|
|
(667
|
)
|
|
|
4,221
|
|
|
Other
|
|
|
15,458
|
|
|
|
67,197
|
|
|
|
(52,991
|
)
|
|
|
14,206
|
|
|
Subtotal
|
|
|
242,547
|
|
|
|
599,428
|
|
|
|
(345,842
|
)
|
|
|
253,586
|
|
|
Fully depreciated assets
|
|
|
-
|
|
|
|
(55,374
|
)
|
|
|
55,374
|
|
|
|
-
|
|
|
Total
|
|
|
242,547
|
|
|
|
544,054
|
|
|
|
(290,468
|
)
|
|
|
253,586
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Net opening
|
|
|
|
|
|
|
|
|
|
|
|
|
|
balance as of
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net
|
|
|
|
|
January 1, 2017
|
|
|
balance
|
|
|
depreciation
|
|
|
balance
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and building
|
|
|
169,809
|
|
|
|
274,079
|
|
|
|
(114,727
|
)
|
|
|
159,352
|
|
|
Equipment
|
|
|
66,506
|
|
|
|
193,689
|
|
|
|
(130,173
|
)
|
|
|
63,516
|
|
|
Ceded under operating leases
|
|
|
4,230
|
|
|
|
4,888
|
|
|
|
(667
|
)
|
|
|
4,221
|
|
|
Other
|
|
|
16,834
|
|
|
|
60,822
|
|
|
|
(45,364
|
)
|
|
|
15,458
|
|
|
Subtotal
|
|
|
257,379
|
|
|
|
533,478
|
|
|
|
(290,931
|
)
|
|
|
242,547
|
|
|
Fully depreciated assets
|
|
|
-
|
|
|
|
(59,045
|
)
|
|
|
59,045
|
|
|
|
-
|
|
|
Total
|
|
|
257,379
|
|
|
|
474,433
|
|
|
|
(231,886
|
)
|
|
|
242,547
|
|
|
|
b)
|
The changes in the value of property, plant and equipment
during 2018 and 2017 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
Land and
|
|
|
|
|
|
Operating
|
|
|
|
|
|
depreciated
|
|
|
|
|
|
|
|
buildings
|
|
|
Equipment
|
|
|
leases
|
|
|
Other
|
|
|
assets
|
|
|
Total
|
|
|
2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
274,079
|
|
|
|
193,689
|
|
|
|
4,888
|
|
|
|
60,823
|
|
|
|
(59,045
|
)
|
|
|
474,434
|
|
|
Additions
|
|
|
35,369
|
|
|
|
28,438
|
|
|
|
-
|
|
|
|
4,522
|
|
|
|
-
|
|
|
|
68,329
|
|
|
Disposals
|
|
|
(63
|
)
|
|
|
(4,130
|
)
|
|
|
-
|
|
|
|
(2,104
|
)
|
|
|
-
|
|
|
|
(6,297
|
)
|
|
Impairment due to damage (*)
|
|
|
-
|
|
|
|
(39
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(39
|
)
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,956
|
|
|
|
3,671
|
|
|
|
7,627
|
|
|
Balances as of December 31, 2018
|
|
|
309,385
|
|
|
|
217,958
|
|
|
|
4,888
|
|
|
|
67,197
|
|
|
|
(55,374
|
)
|
|
|
544,054
|
|
|
|
(*)
|
Banco Santander Chile has had to recognize in its financial
statements as of December 31, 2018 deterioration by $39 Millions, corresponding to ATM claims. Compensation charged for insurance
concepts involved, amounted to $-------- million, which are presented within the heading "Other income and operational expenses"
(note 35).
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
74
Banco Santander Chile and
Subsidiaries
Notes to the Consolidated
Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 14
PROPERTY, PLANT, AND EQUIPMENT,
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
depreciated
|
|
|
|
|
|
|
|
Land and buildings
|
|
|
Equipment
|
|
|
leases
|
|
|
Other
|
|
|
assets
|
|
|
Total
|
|
|
2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
264,016
|
|
|
|
168,124
|
|
|
|
4,888
|
|
|
|
55,973
|
|
|
|
(39,958
|
)
|
|
|
453,043
|
|
|
Additions
|
|
|
27,592
|
|
|
|
26,278
|
|
|
|
-
|
|
|
|
4,901
|
|
|
|
-
|
|
|
|
58,771
|
|
|
Disposals
|
|
|
(17,529
|
)
|
|
|
(359
|
)
|
|
|
-
|
|
|
|
(51
|
)
|
|
|
-
|
|
|
|
(17,939
|
)
|
|
Impairment due to damage (*)
|
|
|
-
|
|
|
|
(354
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(354
|
)
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19,087
|
)
|
|
|
(19,087
|
)
|
|
Balances as of December 31, 2017
|
|
|
274,079
|
|
|
|
193,689
|
|
|
|
4,888
|
|
|
|
60,823
|
|
|
|
(59,045
|
)
|
|
|
474,434
|
|
|
|
(*)
|
Banco Santander Chile has had to recognize in its consolidated
financial statements as of December 31, 2017 deterioration by $354 Millions, corresponding to ATM claims. Compensation charged
for insurance concepts involved, amounted to $ 1,238 billion, which are presented within the heading "Other income and operational
expenses" (note 35).
|
|
|
b.2)
|
Accumulated depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
Land and
|
|
|
|
|
|
Operating
|
|
|
|
|
|
depreciated
|
|
|
|
|
|
|
|
buildings
|
|
|
Equipment
|
|
|
leases
|
|
|
Other
|
|
|
assets
|
|
|
Total
|
|
|
2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
(114,727
|
)
|
|
|
(130,173
|
)
|
|
|
(667
|
)
|
|
|
(45,365
|
)
|
|
|
59,045
|
|
|
|
(231,887
|
)
|
|
Depreciation in the period
|
|
|
(17,704
|
)
|
|
|
(29,623
|
)
|
|
|
-
|
|
|
|
(7,660
|
)
|
|
|
-
|
|
|
|
(54,987
|
)
|
|
Sales and disposals in the period
|
|
|
3
|
|
|
|
40
|
|
|
|
-
|
|
|
|
34
|
|
|
|
-
|
|
|
|
77
|
|
|
Transfers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Others
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,671
|
)
|
|
|
(3,671
|
)
|
|
Balances as of December 31, 2018
|
|
|
(132,428
|
)
|
|
|
(159,756
|
)
|
|
|
(667
|
)
|
|
|
(52,991
|
)
|
|
|
55,374
|
|
|
|
(290,468
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
|
|
|
|
|
|
|
|
Land and
|
|
|
|
|
|
Operating
|
|
|
|
|
|
depreciated
|
|
|
|
|
|
|
|
buildings
|
|
|
Equipment
|
|
|
leases
|
|
|
Other
|
|
|
assets
|
|
|
Total
|
|
|
2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
(94,207
|
)
|
|
|
(101,618
|
)
|
|
|
(658
|
)
|
|
|
(39,139
|
)
|
|
|
39,958
|
|
|
|
(195,664
|
)
|
|
Depreciation in the period
|
|
|
(20,744
|
)
|
|
|
(28,593
|
)
|
|
|
(9
|
)
|
|
|
(6,277
|
)
|
|
|
-
|
|
|
|
(55,623
|
)
|
|
Sales and disposals in the period
|
|
|
224
|
|
|
|
38
|
|
|
|
-
|
|
|
|
51
|
|
|
|
-
|
|
|
|
313
|
|
|
Transfers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Others
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,087
|
|
|
|
19,087
|
|
|
Balances as of December 31, 2017
|
|
|
(114,727
|
)
|
|
|
(130,173
|
)
|
|
|
(667
|
)
|
|
|
(45,365
|
)
|
|
|
59,045
|
|
|
|
(231,887
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
75
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 14
PROPERTY, PLANT, AND EQUIPMENT, continued
|
|
c)
|
Operational leases - Lessor
|
As of December 31, 2018, and 2017, the future minimum lease cash inflows under non-cancellable operating leases
are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
469
|
|
|
|
567
|
|
|
Due after 1 year but within 2 years
|
|
|
882
|
|
|
|
749
|
|
|
Due after 2 years but within 3 years
|
|
|
469
|
|
|
|
480
|
|
|
Due after 3 years but within 4 years
|
|
|
460
|
|
|
|
348
|
|
|
Due after 4 years but within 5 years
|
|
|
428
|
|
|
|
308
|
|
|
Due after 5 years
|
|
|
2,242
|
|
|
|
1,792
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,950
|
|
|
|
4,244
|
|
|
|
d)
|
Operational leases - Lessee
|
Some of the Bank's premises and equipment
are under operating leases, Future minimum rental payments under non-cancellable leases are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
25,702
|
|
|
|
26,059
|
|
|
Due after 1 year but within 2 years
|
|
|
24,692
|
|
|
|
21,343
|
|
|
Due after 2 years but within 3 years
|
|
|
22,439
|
|
|
|
18,091
|
|
|
Due after 3 years but within 4 years
|
|
|
19,574
|
|
|
|
15,736
|
|
|
Due after 4 years but within 5 years
|
|
|
17,250
|
|
|
|
12,734
|
|
|
Due after 5 years
|
|
|
63,945
|
|
|
|
51,502
|
|
|
Total
|
|
|
173,602
|
|
|
|
145,465
|
|
|
|
e)
|
As of December 31, 2018, and 2017 the Bank has no finance leases which cannot be unilaterally cancelled,
|
|
|
f)
|
The Bank has no restriction on property, plant and equipment
as of December 31, 2018 and 2017, Additionally, the property, plant, and equipment have not been provided as guarantees to secure
compliance with financial liabilities. The Bank has no debt in connection with property, plant and equipment.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
76
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 15
CURRENT AND DEFERRED TAXES
As of December 31, 2018, and 2017, the Bank recognizes taxes payable (recoverable), which is determined based
on the currently applicable tax legislation. This amount is recorded net of recoverable taxes, and is shown as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Summary of current tax liabilities (assets)
|
|
|
|
|
|
|
|
|
|
Current tax (assets)
|
|
|
-
|
|
|
|
-
|
|
|
Current tax liabilities
|
|
|
8,093
|
|
|
|
6,435
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tax payable (recoverable)
|
|
|
8,093
|
|
|
|
6,435
|
|
|
|
|
|
|
|
|
|
|
|
|
(Assets) liabilities current taxes detail (net)
|
|
|
|
|
|
|
|
|
|
Income tax (*)
|
|
|
166,173
|
|
|
|
145,112
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Provisional monthly payments
|
|
|
(155,706
|
)
|
|
|
(136,562
|
)
|
|
Credit for training expenses
|
|
|
(1,937
|
)
|
|
|
(1,768
|
)
|
|
Land taxes leasing
|
|
|
-
|
|
|
|
-
|
|
|
Grant credits
|
|
|
(1,320
|
)
|
|
|
(968
|
)
|
|
Other
|
|
|
883
|
|
|
|
621
|
|
|
Total tax payable (recoverable)
|
|
|
8,093
|
|
|
|
6,435
|
|
|
|
(*)
|
As of December 31, 2018, and 2017 the tax rates were 27.0% and 25.5%.
|
The effect tax expense has on income for the years ended December
31, 2018 and 2017 is comprised of the following items:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
Current tax
|
|
|
166,173
|
|
|
|
145,112
|
|
|
Credits (debits) for deferred taxes
|
|
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences
|
|
|
3,590
|
|
|
|
(8,178
|
)
|
|
Valuation provision
|
|
|
(56
|
)
|
|
|
5,955
|
|
|
Subtotal
|
|
|
169,707
|
|
|
|
142,889
|
|
|
Tax for rejected expenses (Article No,21)
|
|
|
1,110
|
|
|
|
610
|
|
|
Other
|
|
|
(4.920
|
)
|
|
|
114
|
|
|
Net income tax expense
|
|
|
165,897
|
|
|
|
143,613
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
77
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 15
CURRENT AND DEFERRED TAXES, continued
|
|
c)
|
Effective tax rate reconciliation
|
The reconciliation between the income tax
rate and the effective rate in calculating the tax expense as of December 31, 2018 and 2017 is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate
|
|
|
Amount
|
|
|
Tax rate
|
|
|
Amount
|
|
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax calculated over profit before tax
|
|
|
27.00
|
|
|
|
205,784
|
|
|
|
25.50
|
|
|
|
183,823
|
|
|
Permanent differences (1)
|
|
|
(5.18
|
)
|
|
|
(39,494
|
)
|
|
|
(3.25
|
)
|
|
|
(23,399
|
)
|
|
Penalty tax (rejected expenses)
|
|
|
0.15
|
|
|
|
1,110
|
|
|
|
0.08
|
|
|
|
610
|
|
|
Rate change effect (2)
|
|
|
0.00
|
|
|
|
-
|
|
|
|
(2.86
|
)
|
|
|
(20,600
|
)
|
|
Other
|
|
|
(0.20
|
)
|
|
|
(1,503
|
)
|
|
|
0.44
|
|
|
|
3,179
|
|
|
Effective rates and expenses for income tax
|
|
|
21.77
|
|
|
|
165,897
|
|
|
|
19.91
|
|
|
|
143,613
|
|
|
|
(1)
|
It mainly corresponds to the permanent differences originated
by the Monetary Correction of the Tax Own Capital.
|
|
|
(2)
|
The publication of law 20,780 of September 29, 2014 increased
the tax rate from the current 25.5% in the year 2017 to 27% for the year 2018 and onwards permanently.
|
|
|
d)
|
Effect of deferred taxes on other comprehensive income
|
A summary of the separate effect of deferred
tax on other comprehensive income, showing the asset and liability balances, for the periods ended December 31, 2018 and 2017 follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
1,071
|
|
|
|
368
|
|
|
Cash flow hedges
|
|
|
65
|
|
|
|
908
|
|
|
Total deferred tax assets recognized through other comprehensive income
|
|
|
1,136
|
|
|
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
(2,806
|
)
|
|
|
(841
|
)
|
|
Cash flow hedges
|
|
|
(2,711
|
)
|
|
|
-
|
|
|
Total deferred tax liabilities recognized through other comprehensive income
|
|
|
(5,517
|
)
|
|
|
(841
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax balances in equity
|
|
|
(4,381
|
)
|
|
|
435
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes in equity attributable to equity holders of the bank
|
|
|
(4,027
|
)
|
|
|
791
|
|
|
Deferred tax in equity attributable to non-controlling interests
|
|
|
(354
|
)
|
|
|
(356
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
78
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 15
CURRENT AND DEFERRED TAXES, continued
|
|
e)
|
Effect of deferred taxes on income
|
Below are effects of deferred taxes on
assets, liabilities and income allocated for differences:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
Interests and adjustments
|
|
|
9,384
|
|
|
|
8,645
|
|
|
Non-recurring charge-offs
|
|
|
13,389
|
|
|
|
11,651
|
|
|
Assets received in lieu of payment
|
|
|
2,467
|
|
|
|
4,073
|
|
|
Exchange rate adjustment
|
|
|
1,675
|
|
|
|
882
|
|
|
Property, plant and equipment
|
|
|
6,138
|
|
|
|
4,410
|
|
|
Provision for loan losses
|
|
|
168,320
|
|
|
|
172,386
|
|
|
Provision for expenses
|
|
|
63,134
|
|
|
|
73,518
|
|
|
Derivatives
|
|
|
3,924
|
|
|
|
5,249
|
|
|
Leased assets
|
|
|
107,897
|
|
|
|
98,090
|
|
|
Subsidiaries tax losses
|
|
|
5,314
|
|
|
|
5,277
|
|
|
Prepaid Expenses
|
|
|
156
|
|
|
|
151
|
|
|
Investment valuation
|
|
|
-
|
|
|
|
-
|
|
|
Total deferred tax assets
|
|
|
381,798
|
|
|
|
384,332
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
Valuation of investments
|
|
|
(42
|
)
|
|
|
(1,911
|
)
|
|
Depreciation
|
|
|
-
|
|
|
|
(532
|
)
|
|
Anticipated Expenses
|
|
|
(349
|
)
|
|
|
-
|
|
|
Provision for evaluation
|
|
|
(6,084
|
)
|
|
|
(5,955
|
)
|
|
Derivatives
|
|
|
(3,383
|
)
|
|
|
-
|
|
|
Exchange rate adjustments
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
(20
|
)
|
|
|
(424
|
)
|
|
Total deferred tax liabilities
|
|
|
(9,878
|
)
|
|
|
(8,822
|
)
|
|
|
(*)
|
They include deferred tax assets due to temporary differences
in derivative contracts.
|
|
|
f)
|
Summary of deferred tax assets and liabilities
|
A summary of the effect of deferred taxes on equity and income
follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
Recognized through other comprehensive income
|
|
|
1,136
|
|
|
|
1,276
|
|
|
Recognized through profit or loss
|
|
|
381,798
|
|
|
|
384,332
|
|
|
Total deferred tax assets
|
|
|
382,934
|
|
|
|
385,608
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
Recognized through other comprehensive income
|
|
|
(5,517
|
)
|
|
|
(841
|
)
|
|
Recognized through profit or loss
|
|
|
(9,878
|
)
|
|
|
(8,822
|
)
|
|
Total deferred tax liabilities
|
|
|
(15,395
|
)
|
|
|
(9,663
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
79
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 15
CURRENT AND DEFERRED TAXES, continued
g) Supplementary
information related to the circular issued by internal tax service and the superintendency of bank and financial institutions.
|
|
g.1)
|
Receivables and accounts receivable
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
Assets at tax value
|
|
|
|
|
|
Assets at tax value
|
|
|
|
|
Assets at
|
|
|
|
|
|
Overdue Wallet
|
|
|
Assets at
|
|
|
|
|
|
Overdue Wallet
|
|
|
|
|
financial
|
|
|
|
|
|
with
|
|
|
without
|
|
|
financial
|
|
|
|
|
|
with
|
|
|
without
|
|
|
|
|
value
|
|
|
Total
|
|
|
Warranty
|
|
|
Warranty
|
|
|
value
|
|
|
Total
|
|
|
Warranty
|
|
|
Warranty
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Owed by banks
|
|
|
15,094
|
|
|
|
15,094
|
|
|
|
-
|
|
|
|
-
|
|
|
|
162,685
|
|
|
|
162,684
|
|
|
|
-
|
|
|
|
-
|
|
|
Commercial Placements
|
|
|
13,414,955
|
|
|
|
13,441,810
|
|
|
|
119,558
|
|
|
|
177,971
|
|
|
|
12,001,748
|
|
|
|
12,024,895
|
|
|
|
88,495
|
|
|
|
157,106
|
|
|
Consume Placements
|
|
|
4,872,131
|
|
|
|
4,878,008
|
|
|
|
1,372
|
|
|
|
22,127
|
|
|
|
4,552,977
|
|
|
|
4,592,105
|
|
|
|
1,327
|
|
|
|
20,041
|
|
|
Home mortgage Placements
|
|
|
10,150,981
|
|
|
|
10,200,415
|
|
|
|
63,121
|
|
|
|
1,031
|
|
|
|
9,096,895
|
|
|
|
9,106,216
|
|
|
|
64,525
|
|
|
|
1,245
|
|
|
Total
|
|
|
28,453,161
|
|
|
|
28,535,327
|
|
|
|
184,051
|
|
|
|
201,129
|
|
|
|
25,814,305
|
|
|
|
25,885,900
|
|
|
|
154,347
|
|
|
|
178,392
|
|
|
|
g.2)
|
Provision on overdue portfolio without guarantees
|
|
|
|
Balance as of
|
|
|
Punishment
|
|
|
|
|
|
|
|
|
Balance as of
|
|
|
|
|
January 1,
|
|
|
against
|
|
|
Provisions
|
|
|
Provisions
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
provisions
|
|
|
constituted
|
|
|
free
|
|
|
2018
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Placements
|
|
|
157,106
|
|
|
|
(70,181
|
)
|
|
|
487,325
|
|
|
|
(396,280
|
)
|
|
|
177,971
|
|
|
Consume Placements
|
|
|
20,041
|
|
|
|
(198,534
|
)
|
|
|
204,703
|
|
|
|
(4,082
|
)
|
|
|
22,127
|
|
|
Home mortgage Placements
|
|
|
1,245
|
|
|
|
(9,128
|
)
|
|
|
35,605
|
|
|
|
(26,693
|
)
|
|
|
1,031
|
|
|
Total
|
|
|
178,392
|
|
|
|
(277,843
|
)
|
|
|
727,633
|
|
|
|
(427,055
|
)
|
|
|
201,129
|
|
|
|
|
Balance as of
|
|
|
Punishment
|
|
|
|
|
|
|
|
|
Balance as of
|
|
|
|
|
January 1,
|
|
|
against
|
|
|
Provisions
|
|
|
Provisions
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
provisions
|
|
|
constituted
|
|
|
free
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Placements
|
|
|
133,424
|
|
|
|
(92,904
|
)
|
|
|
581,141
|
|
|
|
(464,555
|
)
|
|
|
157,106
|
|
|
Consume Placements
|
|
|
24,924
|
|
|
|
(235,208
|
)
|
|
|
237,298
|
|
|
|
(6,973
|
)
|
|
|
20,041
|
|
|
Home mortgage Placements
|
|
|
1,401
|
|
|
|
(9,740
|
)
|
|
|
41,657
|
|
|
|
(32,073
|
)
|
|
|
1,245
|
|
|
Total
|
|
|
159,749
|
|
|
|
(337,852
|
)
|
|
|
860,096
|
|
|
|
(503,601
|
)
|
|
|
178,392
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
80
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 15
CURRENT AND DEFERRED TAXES, continued
|
|
g.3)
|
Direct punishments and recoveries
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Direct Punishment Art, 31 No, 4, second paragraph
|
|
|
(38,549
|
)
|
|
|
(42,713
|
)
|
|
Condonation that originated liberation of provisions
|
|
|
-
|
|
|
|
-
|
|
|
Recoveries or renegotiations of credits written off
|
|
|
88,481
|
|
|
|
83,315
|
|
|
Total
|
|
|
49,932
|
|
|
|
40,602
|
|
|
|
g.4)
|
Application Article 31 No, 4 paragraphs I and II
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Punishment according to first paragraph
|
|
|
-
|
|
|
|
-
|
|
|
Condonation according to third paragraph
|
|
|
5,974
|
|
|
|
(6,362
|
)
|
|
Total
|
|
|
5,974
|
|
|
|
(6,362
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
81
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 16
OTHER ASSETS
Other assets include the following:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Assets for leasing (1)
|
|
|
47,486
|
|
|
|
48,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets received or awarded in lieu of payment (2)
|
|
|
|
|
|
|
|
|
|
Assets received in lieu of payment
|
|
|
11,297
|
|
|
|
11,677
|
|
|
Assets awarded at judicial sale
|
|
|
21,524
|
|
|
|
24,800
|
|
|
Provision on assets received in lieu of payment or awarded
|
|
|
(723
|
)
|
|
|
(1,440
|
)
|
|
Subtotal
|
|
|
32,098
|
|
|
|
35,037
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
Guarantee deposits (margin accounts) (3)
|
|
|
170,232
|
|
|
|
323,767
|
|
|
Gold investments
|
|
|
522
|
|
|
|
478
|
|
|
VAT credit
|
|
|
9,097
|
|
|
|
9,570
|
|
|
Income tax recoverable
|
|
|
1,756
|
|
|
|
1,381
|
|
|
Prepaid expenses (4)
|
|
|
477,819
|
|
|
|
116,512
|
|
|
Active assets Fixed for Sale
|
|
|
-
|
|
|
|
663
|
|
|
Assets recovered from leasing for sale
|
|
|
6,848
|
|
|
|
4,235
|
|
|
Valuation Adjustments by macrohedge
|
|
|
9,414
|
|
|
|
160
|
|
|
Pension plan assets
|
|
|
846
|
|
|
|
921
|
|
|
Accounts and notes receivable
|
|
|
59,511
|
|
|
|
59,574
|
|
|
Notes receivable through brokerage and simultaneous transactions
|
|
|
78,330
|
|
|
|
68,272
|
|
|
Other receivable assets
|
|
|
48,612
|
|
|
|
53,500
|
|
|
Other assets
|
|
|
42,417
|
|
|
|
33,014
|
|
|
Subtotal
|
|
|
905,404
|
|
|
|
672,047
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
984,988
|
|
|
|
755,183
|
|
(1) Correspondence
to the assets available to be delivered under the financial lease modality.
(2) The goods received in
payment correspond to the goods received as payment of debts due from the customers, the set of goods that remain acquired in this
way must not exceed 20% of the Bank's effective equity at any time. These assets currently represent 0.28% (0,30% as of December
31, 2017) of the Bank's effective equity.
The assets awarded in judicial auction, correspond
to assets that have been acquired at judicial auction in payment of debts previously contracted with the Bank. The assets acquired
at judicial auction are not subject to the above-mentioned margin, These properties are assets available for sale, For most assets,
the sale can be completed within one year from the date the asset is received or acquired, In case the good is not sold within
a year, it must be punished.
Additionally, a provision is recorded for
the difference between the initial award value plus the additions and their estimated realizable value, when the former is higher.
(3) Corresponds to a guarantee threshold associated with a specific derivative contract.
These guarantees operate when the valuation of the derivatives exceeds thresholds defined in the contract values and may be for
or against the Bank.
(4) Corresponds
to the renewal of the "Santander Latam Pass" program.
Consolidated Financial Statements December 2018 / Banco Santander Chile
82
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 17
DEPOSITS AND OTHER LIABILITIES
As of December 31, 2018, and 2017, the composition of the item time deposits and other liabilities is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Deposits and other demand liabilities
|
|
|
|
|
|
|
|
|
|
Checking accounts
|
|
|
6,794,132
|
|
|
|
6,272,656
|
|
|
Other deposits and demand accounts
|
|
|
709,711
|
|
|
|
590,221
|
|
|
Other demand liabilities
|
|
|
1,237,574
|
|
|
|
905,289
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,741,417
|
|
|
|
7,768,166
|
|
|
Time deposits and other time liabilities
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
12,944,846
|
|
|
|
11,792,466
|
|
|
Time savings account
|
|
|
118,587
|
|
|
|
116,179
|
|
|
Other time liabilities
|
|
|
4,386
|
|
|
|
5,300
|
|
|
Total
|
|
|
13,067,819
|
|
|
|
11,913,945
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
83
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 18
INTERBANK BORROWINGS
As of December 31, 2018, and 2017 the line item interbank borrowings is as follow:
|
|
|
As of December, 31
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Loans obtained from the Central Bank of Chile
|
|
|
|
|
|
|
|
Other obligations with the Central Bank of Chile
|
|
|
-
|
|
|
|
5
|
|
|
Loans from financial institutions in the country
|
|
|
-
|
|
|
|
480
|
|
|
Loans from financial institutions abroad
|
|
|
|
|
|
|
|
|
|
Bank of America N.A. Us Foreign
|
|
|
338,906
|
|
|
|
228,309
|
|
|
Sumitomo Mitsui Banking Corporation
|
|
|
278,761
|
|
|
|
259,199
|
|
|
Citibank N.A.
|
|
|
241,041
|
|
|
|
191,494
|
|
|
Mizuho Bank Ltd. NY.
|
|
|
223,829
|
|
|
|
215,967
|
|
|
Wells Fargo Bank N.A.
|
|
|
216,749
|
|
|
|
235,058
|
|
|
The Bank of Nova Scotia
|
|
|
163,927
|
|
|
|
86,419
|
|
|
The Bank of New York Mellon
|
|
|
69,921
|
|
|
|
30,839
|
|
|
Corporación Andina De Fomento
|
|
|
52,371
|
|
|
|
-
|
|
|
Standard Chartered Bank
|
|
|
50,960
|
|
|
|
225,966
|
|
|
Barclays Bank PLC London
|
|
|
34,965
|
|
|
|
30,886
|
|
|
Hsbc Bank Plc Ny
|
|
|
34,936
|
|
|
|
30,875
|
|
|
Wachovia Bank, NA
|
|
|
33,499
|
|
|
|
-
|
|
|
Banco Santander Brasil S.A
|
|
|
8,040
|
|
|
|
5,225
|
|
|
Bank of China
|
|
|
7,777
|
|
|
|
831
|
|
|
Banco Santander – Hong Kong
|
|
|
6,047
|
|
|
|
8,341
|
|
|
Deutsche Bank A.G.
|
|
|
5,558
|
|
|
|
157
|
|
|
Bnp Paribas, Hong Kong Branch
|
|
|
3,554
|
|
|
|
-
|
|
|
Keb Hana Bank
|
|
|
2,318
|
|
|
|
396
|
|
|
Rabobank, Hong Kong Branch
|
|
|
1,548
|
|
|
|
-
|
|
|
Hong Kong and Shanghai Banking
|
|
|
1,300
|
|
|
|
222
|
|
|
Banco Santander Central Hispano
|
|
|
1,295
|
|
|
|
312
|
|
|
Unicrédito Italiano
|
|
|
1,117
|
|
|
|
264
|
|
|
Bank of Tokio Mitsubishi
|
|
|
1,032
|
|
|
|
453
|
|
|
Banco Bilbao Vizcaya Argentaria
|
|
|
888
|
|
|
|
-
|
|
|
Standard Chartered Bank Malays
|
|
|
843
|
|
|
|
-
|
|
|
Daxia Bank S.A.
|
|
|
789
|
|
|
|
-
|
|
|
Banque Bruxelles Lambert S.A.
|
|
|
509
|
|
|
|
-
|
|
|
Hsbc Bank Usa
|
|
|
394
|
|
|
|
38
|
|
|
Shinhan Bank
|
|
|
380
|
|
|
|
394
|
|
|
United Bank of India
|
|
|
378
|
|
|
|
-
|
|
|
Woori Bank
|
|
|
356
|
|
|
|
105
|
|
|
State Bank of India
|
|
|
331
|
|
|
|
110
|
|
|
Banca Commerciale Italiana S.P.
|
|
|
288
|
|
|
|
31
|
|
|
Canara Bank
|
|
|
237
|
|
|
|
224
|
|
|
Shanghai Pudong Devekionebt Ba
|
|
|
237
|
|
|
|
-
|
|
|
Banco de Galicia Y Buenos Aires
|
|
|
231
|
|
|
|
-
|
|
|
Bank of East Asia, Limited
|
|
|
205
|
|
|
|
241
|
|
|
First Union National Bank
|
|
|
201
|
|
|
|
35
|
|
|
Industrial Bank of Korea
|
|
|
195
|
|
|
|
-
|
|
|
Banca Monte dei Paschi di Siena
|
|
|
179
|
|
|
|
162
|
|
|
Metropolitan Bank Limited
|
|
|
170
|
|
|
|
87
|
|
|
Hua Nan Commercial Bank Ltd.
|
|
|
164
|
|
|
|
349
|
|
|
Credit Lyonnais
|
|
|
139
|
|
|
|
-
|
|
|
Bank of Shanghai
|
|
|
134
|
|
|
|
-
|
|
|
Bank of Taiwan
|
|
|
127
|
|
|
|
136
|
|
|
Agricultural Bank of China
|
|
|
106
|
|
|
|
295
|
|
|
Akbank T.A.S.
|
|
|
106
|
|
|
|
-
|
|
|
Credit Agricole
|
|
|
106
|
|
|
|
-
|
|
|
Banco Bradesco S.A.
|
|
|
89
|
|
|
|
-
|
|
|
Oriental Bank of Commerce
|
|
|
87
|
|
|
|
-
|
|
|
Kookmin Bank
|
|
|
78
|
|
|
|
201
|
|
|
Banca Nazionale Del Lavoro S.P
|
|
|
77
|
|
|
|
-
|
|
|
Hsbc Bank Middle East
|
|
|
77
|
|
|
|
-
|
|
|
International Commercial Bank
|
|
|
70
|
|
|
|
221
|
|
|
Taiwan Cooperative Bank
|
|
|
66
|
|
|
|
159
|
|
|
Banca Lombarda E Piemontese S.
|
|
|
60
|
|
|
|
-
|
|
|
Hanvit Bank
|
|
|
58
|
|
|
|
55
|
|
|
Bank of India
|
|
|
51
|
|
|
|
-
|
|
|
Caixabank S.A.
|
|
|
44
|
|
|
|
-
|
|
|
Fortis Bank S.A./N.V. Brussels
|
|
|
42
|
|
|
|
15
|
|
|
Subtotal
|
|
|
1,787,943
|
|
|
|
1,554,071
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
84
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 18
INTERBANK BORROWINGS, continued
|
|
|
As of December, 31
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Loans from financial institutions in the country
|
|
|
|
|
|
|
|
|
|
Banco de la Republica Oriental
|
|
|
41
|
|
|
|
-
|
|
|
Bank of Baroda
|
|
|
37
|
|
|
|
-
|
|
|
China Construcción Bank
|
|
|
35
|
|
|
|
90
|
|
|
Banco Internacional S.A.
|
|
|
33
|
|
|
|
-
|
|
|
Joint Stock Commercial Bank Fo.
|
|
|
33
|
|
|
|
-
|
|
|
Shanghai Commercial and Saving
|
|
|
33
|
|
|
|
-
|
|
|
Banistmo S.A.
|
|
|
32
|
|
|
|
-
|
|
|
Banca Popolare Dell'Emilia Rom
|
|
|
31
|
|
|
|
53
|
|
|
Bank of Montreal
|
|
|
31
|
|
|
|
30
|
|
|
Raifeissen Bank Polska S.A
|
|
|
31
|
|
|
|
-
|
|
|
Casa Di Risparmo De Padova E.R.
|
|
|
30
|
|
|
|
56
|
|
|
Industrial and Commercial Bank
|
|
|
30
|
|
|
|
119
|
|
|
Hdfc Bank Limited
|
|
|
28
|
|
|
|
-
|
|
|
Bankinter S.A.
|
|
|
24
|
|
|
|
-
|
|
|
Kbc Bank Nv
|
|
|
23
|
|
|
|
-
|
|
|
Banco Bpm SPA
|
|
|
21
|
|
|
|
-
|
|
|
Cassa Di Risparmio In Bologna
|
|
|
21
|
|
|
|
-
|
|
|
Banco De Sabadell S.A.
|
|
|
20
|
|
|
|
-
|
|
|
Banco Commerzbank
|
|
|
19
|
|
|
|
-
|
|
|
Taiwan Business Bank
|
|
|
19
|
|
|
|
19
|
|
|
Cajas Rurales Unidas
|
|
|
18
|
|
|
|
-
|
|
|
Chang Hwa Commercial Bank Ltd.
|
|
|
18
|
|
|
|
14
|
|
|
U.S. Bank (Formerly First Bank
|
|
|
18
|
|
|
|
-
|
|
|
United World Chinese Commercia
|
|
|
15
|
|
|
|
-
|
|
|
Banco Itau S.A.
|
|
|
14
|
|
|
|
-
|
|
|
Mega International Commercial
|
|
|
9
|
|
|
|
-
|
|
|
Banca Popolare Di Milano S.C.A
|
|
|
6
|
|
|
|
-
|
|
|
Hang Seng Bank (China) Limited
|
|
|
6
|
|
|
|
-
|
|
|
Sumitono Mitsui
|
|
|
4
|
|
|
|
-
|
|
|
Development Bank of Singapore
|
|
|
3
|
|
|
|
-
|
|
|
Abanca corporation Bancaria S.A.
|
|
|
-
|
|
|
|
60
|
|
|
Australia And New Zealand Bank
|
|
|
-
|
|
|
|
62
|
|
|
Banca Delle Marche SPA
|
|
|
-
|
|
|
|
76
|
|
|
Banco Bradesco S.A.
|
|
|
-
|
|
|
|
50
|
|
|
Banco Caixa Geral
|
|
|
-
|
|
|
|
33
|
|
|
Banco Commerzbank
|
|
|
-
|
|
|
|
145
|
|
|
Banco de Occidente
|
|
|
-
|
|
|
|
282
|
|
|
Banco Sabadell S.A.
|
|
|
-
|
|
|
|
10
|
|
|
Banco Do Brasil S.A.
|
|
|
-
|
|
|
|
268
|
|
|
Banco Internacional S.A.
|
|
|
-
|
|
|
|
33
|
|
|
Banco Popolare Soc Coop
|
|
|
-
|
|
|
|
6
|
|
|
Banco Popular Español S.A.
|
|
|
-
|
|
|
|
19
|
|
|
Bancolombia S.A.
|
|
|
-
|
|
|
|
94
|
|
|
Bank Austria A.G.
|
|
|
-
|
|
|
|
2,317
|
|
|
Bank of Comunications
|
|
|
-
|
|
|
|
93
|
|
|
Bank Of nova Scotia
|
|
|
-
|
|
|
|
112
|
|
|
Banque Generale Du Luxembourg
|
|
|
-
|
|
|
|
207
|
|
|
Cassa Di Risparmio Di Parma E
|
|
|
-
|
|
|
|
93
|
|
|
Citic Industrial Bank
|
|
|
-
|
|
|
|
39
|
|
|
Corporación andina De Fomento
|
|
|
-
|
|
|
|
31,075
|
|
|
European Investment Bank
|
|
|
-
|
|
|
|
12,629
|
|
|
Habib Bank Limited.
|
|
|
-
|
|
|
|
34
|
|
|
Hang Seng Bank Ltd.
|
|
|
|
|
|
|
39
|
|
|
Hsbc Bank Plc
|
|
|
-
|
|
|
|
30,838
|
|
|
Icici Bank Limited
|
|
|
-
|
|
|
|
8
|
|
|
J.P Mogan Chase Bank N.A.
|
|
|
-
|
|
|
|
154
|
|
|
Kasikornbank Public Company Li.
|
|
|
-
|
|
|
|
25
|
|
|
Liu Chong Hing Bank Limited
|
|
|
-
|
|
|
|
21
|
|
|
Mizuho Corporate Bank
|
|
|
-
|
|
|
|
331
|
|
|
Punjab Natinal Bank
|
|
|
-
|
|
|
|
47
|
|
|
Shanghai Pudong Development
|
|
|
-
|
|
|
|
714
|
|
|
Societe Generale
|
|
|
-
|
|
|
|
56
|
|
|
Thai Military Bank Public comp
|
|
|
-
|
|
|
|
377
|
|
|
The Toronto-Dominion Bank
|
|
|
-
|
|
|
|
62,743
|
|
|
Yapi Ve Kredi Bankasi A.S.
|
|
|
-
|
|
|
|
155
|
|
|
Zhenjiang Commercial Bank Ltd.
|
|
|
-
|
|
|
|
175
|
|
|
Subtotal
|
|
|
683
|
|
|
|
143,801
|
|
|
Total
|
|
|
1,788,626
|
|
|
|
1,698,357
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
85
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 18
INTERBANK BORROWINGS, continued
|
|
a)
|
Obligation with Central Bank of Chile
|
Debts to the Central Bank of Chile include credit lines for renegotiation of loans and other borrowings. These
credit lines were provided by the Central Bank of Chile for renegotiation of loans due to the need to refinance debt as a result
of the economic recession and crisis of the banking system in the early 1980s.
The outstanding amounts owed to the Central Bank
of Chile under these credit lines are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals Line of credit for renegotiation with Central Bank of Chile
|
|
|
-
|
|
|
|
5
|
|
|
|
b)
|
Loans from domestic financial institutions
|
these obligations maturities are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Due Within 1 year
|
|
|
-
|
|
|
|
480
|
|
|
Due Within 1 y 2 years
|
|
|
-
|
|
|
|
-
|
|
|
Due Within 2 y 3 years
|
|
|
-
|
|
|
|
-
|
|
|
Due Within 3 y 4 years
|
|
|
-
|
|
|
|
-
|
|
|
Due Within 5 years
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans from domestic financial institutions
|
|
|
-
|
|
|
|
480
|
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Due Within 1 year
|
|
|
1,648,955
|
|
|
|
1,477,318
|
|
|
Due Within 1 y 2 years
|
|
|
139,671
|
|
|
|
185,519
|
|
|
Due Within 2 y 3 years
|
|
|
-
|
|
|
|
35,035
|
|
|
Due Within 3 y 4 years
|
|
|
-
|
|
|
|
-
|
|
|
Due Within 5 years
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans from foreign financial institutions
|
|
|
1,788,626
|
|
|
|
1,697,872
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
86
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES
As of December 31, 2018, and 2017, the composition of this item is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Other financial liabilities
|
|
|
|
|
|
|
|
|
|
Obligations to public sector
|
|
|
32,449
|
|
|
|
59,470
|
|
|
Other domestic obligations
|
|
|
175,210
|
|
|
|
175,389
|
|
|
Foreign obligations
|
|
|
7,741
|
|
|
|
7,171
|
|
|
Subtotal
|
|
|
215,400
|
|
|
|
242,030
|
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
Mortgage finance bonds
|
|
|
25,490
|
|
|
|
34,479
|
|
|
Senior bonds
|
|
|
7,198,865
|
|
|
|
6,186,760
|
|
|
Mortgage Bonds
|
|
|
94,921
|
|
|
|
99,222
|
|
|
Subordinated bonds
|
|
|
795,957
|
|
|
|
773,192
|
|
|
Subtotal
|
|
|
8,115,233
|
|
|
|
7,093,653
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,330,633
|
|
|
|
7,335,683
|
|
Debts classified as current are either demand obligations or
will mature in one year or less. All other debts are classified as non-current. The Bank's debts, both current and non-current,
are summarized below:
|
|
|
As of December 31, 2018
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Mortgage finance bonds
|
|
|
6,830
|
|
|
|
18,660
|
|
|
|
25,490
|
|
|
Senior bonds
|
|
|
844,898
|
|
|
|
6,353,967
|
|
|
|
7,198,865
|
|
|
Mortgage Bonds
|
|
|
4,833
|
|
|
|
90,088
|
|
|
|
94,921
|
|
|
Subordinated bonds
|
|
|
1
|
|
|
|
795,956
|
|
|
|
795,957
|
|
|
Issued debt instruments
|
|
|
856,562
|
|
|
|
7,258,671
|
|
|
|
8,115,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities
|
|
|
205,871
|
|
|
|
9,529
|
|
|
|
215,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,062,433
|
|
|
|
7,268,200
|
|
|
|
8,330,633
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Mortgage finance bonds
|
|
|
8,691
|
|
|
|
25,788
|
|
|
|
34,479
|
|
|
Senior bonds
|
|
|
337,166
|
|
|
|
5,849,594
|
|
|
|
6,186,760
|
|
|
Mortgage Bonds
|
|
|
4,541
|
|
|
|
94,681
|
|
|
|
99,222
|
|
|
Subordinated bonds
|
|
|
3
|
|
|
|
773,189
|
|
|
|
773,192
|
|
|
Issued debt instruments
|
|
|
350,401
|
|
|
|
6,743,252
|
|
|
|
7,093,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities
|
|
|
212,825
|
|
|
|
29,205
|
|
|
|
242,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
563,226
|
|
|
|
6,772,457
|
|
|
|
7,335,683
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
87
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL LIABILITIES,
continued
|
|
a)
|
Mortgage finance bonds
|
These bonds are used to finance mortgage loans, their principal amounts are amortized on a quarterly basis.
The range of maturities of these bonds is between five and twenty years, Loans are indexed to UF and create a yearly interest rate
of -------% as of December 31, 2018 (5.39% as of December 31, 2017).
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Due within 1 year
|
|
|
6,830
|
|
|
|
8,691
|
|
|
Due after 1 year but within 2 years
|
|
|
5,946
|
|
|
|
6,744
|
|
|
Due after 2 years but within 3 years
|
|
|
5,034
|
|
|
|
6,096
|
|
|
Due after 3 years but within 4 years
|
|
|
3,997
|
|
|
|
5,155
|
|
|
Due after 4 years but within 5 years
|
|
|
2,480
|
|
|
|
4,101
|
|
|
Due after 5 years
|
|
|
1,203
|
|
|
|
3,692
|
|
|
Total mortgage finance bonds
|
|
|
25,490
|
|
|
|
34,479
|
|
The following table shows senior bonds by currency:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Santander bonds in UF
|
|
|
4,095,741
|
|
|
|
3,542,006
|
|
|
Santander bonds in USD
|
|
|
1,094,267
|
|
|
|
1,045,465
|
|
|
Santander bonds in CHF
|
|
|
386,979
|
|
|
|
268,281
|
|
|
Santander bonds in Ch$
|
|
|
1,291,900
|
|
|
|
1,135,527
|
|
|
Santander bonds in AUD
|
|
|
24,954
|
|
|
|
14,534
|
|
|
Santander bonds in JPY
|
|
|
191,598
|
|
|
|
126,059
|
|
|
Santander bonds in EUR
|
|
|
113,426
|
|
|
|
54,888
|
|
|
Total senior bonds
|
|
|
7,198,865
|
|
|
|
6,186,760
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
88
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL LIABILITIES,
continued
|
|
i.
|
Placement of senior bonds:
|
During 2018 the Bank has placed bonds for UF 23,000,000, CLP
225,000,000,000, USD 70,000,000, EUR 66,000,000, AUD 20,000,000, CHF 115,000,000 y JPY 7,000,000,000, detailed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series
Maximum
|
|
|
Maturity
|
|
|
Series
|
|
Currency
|
|
|
Amount
placed
|
|
|
Term
(years)
|
|
|
Issuance
rate
|
|
Issue
date
|
|
|
amount
|
|
|
date
|
|
|
T1
|
|
|
UF
|
|
|
|
4,000,000
|
|
|
|
2
|
|
|
|
2.20%
|
|
|
01-02-2016
|
|
|
|
7,000,000
|
|
|
|
01-02-2020
|
|
|
T4
|
|
|
UF
|
|
|
|
4,000,000
|
|
|
|
3
|
|
|
|
2.35%
|
|
|
01-02-2016
|
|
|
|
8,000,000
|
|
|
|
01-08-2021
|
|
|
T11
|
|
|
UF
|
|
|
|
5,000,000
|
|
|
|
7
|
|
|
|
2.65%
|
|
|
01-02-2016
|
|
|
|
5,000,000
|
|
|
|
01-02-2025
|
|
|
T12
|
|
|
UF
|
|
|
|
5,000,000
|
|
|
|
7
|
|
|
|
2.70%
|
|
|
01-02-2016
|
|
|
|
5,000,000
|
|
|
|
01-08-2025
|
|
|
T15
|
|
|
UF
|
|
|
|
5,000,000
|
|
|
|
11
|
|
|
|
3.00%
|
|
|
01-02-2016
|
|
|
|
5,000,000
|
|
|
|
01-08-2028
|
|
|
Total
|
|
|
UF
|
|
|
|
23,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,000,000
|
|
|
|
|
|
|
P5
|
|
|
CLP
|
|
|
|
75,000,000,000
|
|
|
|
4
|
|
|
|
5.30%
|
|
|
05-03-2015
|
|
|
|
150,000,000,000
|
|
|
|
01-03-2022
|
|
|
U4
|
|
|
CLP
|
|
|
|
75,000,000,000
|
|
|
|
3
y 4 months
|
|
|
|
ICP
+ 1.00%
|
|
|
10-01-2017
|
|
|
|
75,000,000,000
|
|
|
|
10-01-2022
|
|
|
U3
|
|
|
CLP
|
|
|
|
75,000,000,000
|
|
|
|
2
y 7 months
|
|
|
|
ICP
+ 1.00%
|
|
|
11-06-2018
|
|
|
|
75,000,000,000
|
|
|
|
11-06-2021
|
|
|
Total
|
|
|
CLP
|
|
|
|
225,000,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300,000,000,000
|
|
|
|
|
|
|
USD
|
|
|
USD
|
|
|
|
50,000,000
|
|
|
|
10
|
|
|
|
4.17%
|
|
|
10-10-2018
|
|
|
|
50,000,000
|
|
|
|
10-10-2028
|
|
|
USD
|
|
|
USD
|
|
|
|
20,000,000
|
|
|
|
2
|
|
|
|
0.0369%
|
|
|
16-11-2018
|
|
|
|
20,000,000
|
|
|
|
16-11-2020
|
|
|
Total
|
|
|
USD
|
|
|
|
70,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,000,000
|
|
|
|
|
|
|
EUR
|
|
|
EUR
|
|
|
|
26,000,000
|
|
|
|
7
|
|
|
|
1.00%
|
|
|
04-05-2018
|
|
|
|
26,000,000
|
|
|
|
28-05-2025
|
|
|
EUR
|
|
|
EUR
|
|
|
|
40,000,000
|
|
|
|
12
|
|
|
|
1.78%
|
|
|
07-06-2018
|
|
|
|
40,000,000
|
|
|
|
15-06-2030
|
|
|
Total
|
|
|
EUR
|
|
|
|
66,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,000,000
|
|
|
|
|
|
|
AUD
|
|
|
AUD
|
|
|
|
20,000,000
|
|
|
|
5
|
|
|
|
3.56%
|
|
|
13-11-2018
|
|
|
|
20,000,000
|
|
|
|
13-11.2023
|
|
|
Total
|
|
|
AUD
|
|
|
|
20,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,000,000
|
|
|
|
|
|
|
CHF
|
|
|
CHF
|
|
|
|
115,000,000
|
|
|
|
5
y 3 months
|
|
|
|
0.441%
|
|
|
21-09-2018
|
|
|
|
115,000,000
|
|
|
|
21-12-2023
|
|
|
Total
|
|
|
CHF
|
|
|
|
115,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115,000,000
|
|
|
|
|
|
|
JPY
|
|
|
JPY
|
|
|
|
4,000,000,000
|
|
|
|
10
y 6 months
|
|
|
|
0.65%
|
|
|
13-07-2018
|
|
|
|
4,000,000,000
|
|
|
|
13-01-2029
|
|
|
JPY
|
|
|
JPY
|
|
|
|
3,000,000,000
|
|
|
|
5
|
|
|
|
56%
|
|
|
30-10-2018
|
|
|
|
3,000,000,000
|
|
|
|
30-10-2023
|
|
|
Total
|
|
|
JPY
|
|
|
|
7,000,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,000,000,000
|
|
|
|
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
89
Banco Santander Chile and
Subsidiaries
Notes to the Consolidated
Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND
OTHER FINANCIAL LIABILITIES, continued
During 2018 the Bank repurchased the following bonds:
|
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
|
04-01-2018
|
|
Senior
|
|
CLP
|
|
|
12,890,000,000
|
|
|
04-01-2018
|
|
Senior
|
|
CLP
|
|
|
4,600,000,000
|
|
|
22-01-2018
|
|
Senior
|
|
UF
|
|
|
24,000
|
|
|
05-04-2018
|
|
Senior
|
|
UF
|
|
|
484,000
|
|
|
06-04-2018
|
|
Senior
|
|
UF
|
|
|
184,000
|
|
|
23-04-2018
|
|
Senior
|
|
UF
|
|
|
216,000
|
|
|
24-04-2018
|
|
Senior
|
|
UF
|
|
|
4,000
|
|
|
25-04-2018
|
|
Senior
|
|
UF
|
|
|
262,000
|
|
|
10-05-2018
|
|
Senior
|
|
UF
|
|
|
800,000
|
|
|
07-06-2018
|
|
Senior
|
|
USD
|
|
|
3,090,000
|
|
|
11-12-2018
|
|
Senior
|
|
USD
|
|
|
250,000,000
|
|
During 2017 the Bank has placed bonds for UF 10,000,000,
CLP 160,000,000,000, AUD 30,000,000 y USD 770,000,000, detailed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Series
|
|
Currency
|
|
|
Amount Placed
|
|
|
Term
|
|
|
Issuance rate
|
|
Issue date
|
|
|
Maximum amount
|
|
|
date
|
|
|
T9
|
|
|
UF
|
|
|
|
5,000,000
|
|
|
|
7
|
|
|
|
2.60%
|
|
|
01-02-2016
|
|
|
|
5,000,000
|
|
|
|
01-03-2024
|
|
|
T13
|
|
|
UF
|
|
|
|
5,000,000
|
|
|
|
9
|
|
|
|
2.75%
|
|
|
01-02-2016
|
|
|
|
5,000,000
|
|
|
|
01-03-2026
|
|
|
Total
|
|
|
|
|
|
|
10,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,000,000
|
|
|
|
|
|
|
SD
|
|
|
CLP
|
|
|
|
60,000,000,000
|
|
|
|
5
|
|
|
|
5.50%
|
|
|
01-06-2014
|
|
|
|
200,000,000,000
|
|
|
|
01-12-2019
|
|
|
T16
|
|
|
CLP
|
|
|
|
100,000,000,000
|
|
|
|
6
|
|
|
|
5.20%
|
|
|
01-02-2016
|
|
|
|
100,000,000,000
|
|
|
|
01-12-2021
|
|
|
Total
|
|
|
|
|
|
|
160,000,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300,000,000,000
|
|
|
|
|
|
|
DN
|
|
|
USD
|
|
|
|
100,000,000
|
|
|
|
3
|
|
|
|
Libor-USD 3M+0.80%
|
|
|
20-07-2017
|
|
|
|
100,000,000
|
|
|
|
27-07-2020
|
|
|
DN
|
|
|
USD
|
|
|
|
50,000,000
|
|
|
|
3
|
|
|
|
Libor-USD 3M+0.80%
|
|
|
21-07-2017
|
|
|
|
50,000,000
|
|
|
|
27-07-2020
|
|
|
DN
|
|
|
USD
|
|
|
|
50,000,000
|
|
|
|
3
|
|
|
|
Libor-USD 3M+0.80%
|
|
|
24-07-2017
|
|
|
|
50,000,000
|
|
|
|
27-07-2020
|
|
|
DN
|
|
|
USD
|
|
|
|
10,000,000
|
|
|
|
4
|
|
|
|
Libor-USD 3M+0.80%
|
|
|
23-08-2017
|
|
|
|
10,000,000
|
|
|
|
23-11-2021
|
|
|
DN
|
|
|
USD
|
|
|
|
10,000,000
|
|
|
|
4
|
|
|
|
Libor-USD 3M+0.83%
|
|
|
23-08-2017
|
|
|
|
10,000,000
|
|
|
|
23-11-2021
|
|
|
DN
|
|
|
USD
|
|
|
|
50,000,000
|
|
|
|
3
|
|
|
|
Libor-USD 3M+0.83%
|
|
|
14-09-2017
|
|
|
|
50,000,000
|
|
|
|
15-09-2020
|
|
|
DN
|
|
|
USD
|
|
|
|
500,000,000
|
|
|
|
3
|
|
|
|
Libor-USD 3M+0.75%
|
|
|
12-12-2017
|
|
|
|
500,000,000
|
|
|
|
15-12-2020
|
|
|
Total
|
|
|
|
|
|
|
770,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
770,000,000
|
|
|
|
|
|
|
AUD
|
|
|
AUD
|
|
|
|
30,000,000
|
|
|
|
10
|
|
|
|
3.96%
|
|
|
05-12-2017
|
|
|
|
30,000,000
|
|
|
|
12-12-2027
|
|
|
Total
|
|
|
|
|
|
|
30,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,000,000
|
|
|
|
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
90
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
During 2017, the Bank repurchased the following bonds:
|
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
|
06-03-2017
|
|
|
Senior
|
|
|
USD
|
|
|
6,900,000
|
|
|
12-05-2017
|
|
|
Senior
|
|
|
UF
|
|
|
1,000,000
|
|
|
16-05-2017
|
|
|
Senior
|
|
|
UF
|
|
|
690,000
|
|
|
17-05-2017
|
|
|
Senior
|
|
|
UF
|
|
|
15,000
|
|
|
26-06-2017
|
|
|
Senior
|
|
|
UF
|
|
|
340,000
|
|
|
01-06-2017
|
|
|
Senior
|
|
|
UF
|
|
|
590,000
|
|
|
02-06-2017
|
|
|
Senior
|
|
|
UF
|
|
|
300,000
|
|
|
05-06-2017
|
|
|
Senior
|
|
|
UF
|
|
|
130,000
|
|
|
19-06-2017
|
|
|
Senior
|
|
|
UF
|
|
|
265,000
|
|
|
10-07-2017
|
|
|
Senior
|
|
|
UF
|
|
|
770,000
|
|
|
21-07-2017
|
|
|
Senior
|
|
|
UF
|
|
|
10,000
|
|
|
28-08-2017
|
|
|
Senior
|
|
|
UF
|
|
|
200,000
|
|
|
28-08-2017
|
|
|
Senior
|
|
|
UF
|
|
|
200,000
|
|
|
29-08-2017
|
|
|
Senior
|
|
|
UF
|
|
|
2,000
|
|
|
29-08-2017
|
|
|
Senior
|
|
|
UF
|
|
|
270,000
|
|
|
03-11-2017
|
|
|
Senior
|
|
|
UF
|
|
|
14,000
|
|
|
29-11-2017
|
|
|
Senior
|
|
|
UF
|
|
|
400,000
|
|
|
06-12-2017
|
|
|
Senior
|
|
|
UF
|
|
|
20,000
|
|
|
12-12-2017
|
|
|
Senior
|
|
|
CLP
|
|
|
10,990,000,000
|
|
|
|
ii.
|
Maturities of senior bonds are as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Due within 1 year
|
|
|
844,898
|
|
|
|
337,166
|
|
|
Due after 1 year but within 2 years
|
|
|
1,331,255
|
|
|
|
866,936
|
|
|
Due after 2 years but within 3 years
|
|
|
1,073,847
|
|
|
|
832,978
|
|
|
Due after 3 years but within 4 years
|
|
|
1,104,547
|
|
|
|
1,177,081
|
|
|
Due after 4 years but within 5 years
|
|
|
421,918
|
|
|
|
902,647
|
|
|
Due after 5 years
|
|
|
2,422,400
|
|
|
|
2,069,952
|
|
|
Total senior bonds
|
|
|
7,198,865
|
|
|
|
6,186,760
|
|
Detail of mortgage bonds per currency is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Mortgage bonds in UF
|
|
|
94,921
|
|
|
|
99,222
|
|
|
Total mortgage bonds
|
|
|
94,921
|
|
|
|
99,222
|
|
|
|
i.
|
Placement of Mortgage bonds
|
During 2018 and 2017, the Bank has not placed any mortgage bonds.
Consolidated Financial Statements December 2018 / Banco Santander Chile
91
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
|
|
ii.
|
Maturities of mortgage bonds is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Due within 1 year
|
|
|
4,833
|
|
|
|
4,541
|
|
|
Due after 1 year but within 2 years
|
|
|
7,758
|
|
|
|
7,291
|
|
|
Due after 2 years but within 3 years
|
|
|
8,008
|
|
|
|
7,526
|
|
|
Due after 3 years but within 4 years
|
|
|
8,267
|
|
|
|
7,769
|
|
|
Due after 4 years but within 5 years
|
|
|
8,534
|
|
|
|
8,019
|
|
|
Due after 5 years
|
|
|
57,521
|
|
|
|
64,076
|
|
|
Total mortgage bonds
|
|
|
94,921
|
|
|
|
99,222
|
|
Detail of subordinated bonds per currency is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Subordinated bonds denominated in Ch$
|
|
|
1
|
|
|
|
3
|
|
|
Subordinated bonds denominated in USD
|
|
|
-
|
|
|
|
-
|
|
|
Subordinated bonds denominated in UF
|
|
|
795,956
|
|
|
|
773,189
|
|
|
Total subordinated bonds
|
|
|
795,957
|
|
|
|
773,192
|
|
|
|
i.
|
Placement of subordinated bonds
|
During 2018 and 2017, the Bank has not placed any mortgage bonds.
The maturity of subordinated bonds considered long-term is as
follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
1
|
|
|
|
3
|
|
|
Due after 1 year but within 2 years
|
|
|
-
|
|
|
|
-
|
|
|
Due after 2 years but within 3 years
|
|
|
-
|
|
|
|
-
|
|
|
Due after 3 years but within 4 years
|
|
|
-
|
|
|
|
-
|
|
|
Due after 4 years but within 5 years
|
|
|
-
|
|
|
|
-
|
|
|
Due after 5 years
|
|
|
795,956
|
|
|
|
773,189
|
|
|
Total subordinated bonds
|
|
|
795,957
|
|
|
|
773,192
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
92
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 19
ISSUED DEBT INSTRUMENTS AND OTHER
FINANCIAL LIABILITIES, continued
|
|
e)
|
Other financial liabilities
|
The composition of other financial liabilities,
by maturity, is detailed below:
|
|
|
As of December, 31
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Non-current portion:
|
|
|
|
|
|
|
|
|
|
Due after 1 year but within 2 years
|
|
|
9,221
|
|
|
|
23,401
|
|
|
Due after 2 year but within 3 years
|
|
|
40
|
|
|
|
4,181
|
|
|
Due after 3 year but within 4 years
|
|
|
44
|
|
|
|
194
|
|
|
Due after 4 year but within 5 years
|
|
|
48
|
|
|
|
210
|
|
|
Due after 5 years
|
|
|
176
|
|
|
|
1,219
|
|
|
Non-current portion subtotal
|
|
|
9,529
|
|
|
|
29,205
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion:
|
|
|
|
|
|
|
|
|
|
Amounts due to credit card operators
|
|
|
172,425
|
|
|
|
173,271
|
|
|
Acceptance of letters of credit
|
|
|
2,894
|
|
|
|
2,780
|
|
|
Other long-term financial obligations, short-term portion
|
|
|
30,552
|
|
|
|
36,774
|
|
|
Current portion subtotal
|
|
|
205,871
|
|
|
|
212,825
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financial liabilities
|
|
|
215,400
|
|
|
|
242,030
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
93
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 20
MATURITY OF FINANCIAL ASSETS AND LIABILITIES
As of December 31, 2018, and 2017, the detail
of the maturities of assets and liabilities is as follows:
|
|
|
|
|
|
|
Between 1
|
|
Between 3
|
|
|
|
Between 1
|
|
Between 3
|
|
|
|
Subtotal
|
|
|
|
|
|
|
|
|
Up to
|
|
and
|
|
and
|
|
Subtotal
|
|
and
|
|
and
|
|
More than
|
|
More than 1
|
|
|
|
|
|
|
Demand
|
|
1 month
|
|
3 months
|
|
12 months
|
|
up to 1 year
|
|
3 years
|
|
5 years
|
|
5 years
|
|
year
|
|
Total
|
|
|
As
of December 31, 2018
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
2,065,441
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,065,441
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,065,441
|
|
|
Cash items in process of collection
|
|
|
353,757
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
353,757
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
353,757
|
|
|
Trading investments
|
|
|
-
|
|
|
1,064
|
|
|
-
|
|
|
11,642
|
|
|
12,706
|
|
|
16,331
|
|
|
20,080
|
|
|
27,924
|
|
|
64,335
|
|
|
77,041
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
111,268
|
|
|
128,024
|
|
|
543,722
|
|
|
783,014
|
|
|
723,622
|
|
|
552,133
|
|
|
1,041,866
|
|
|
2,317,621
|
|
|
3,100,635
|
|
|
Interbank loans (1)
|
|
|
-
|
|
|
9,427
|
|
|
3,220
|
|
|
2,447
|
|
|
15,094
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
15,094
|
|
|
Loans and accounts receivables from customers (2)
|
|
|
238,213
|
|
|
3,285,576
|
|
|
2,320,222
|
|
|
4,946,887
|
|
|
10,790,898
|
|
|
5,474,289
|
|
|
3,236,349
|
|
|
10,765,393
|
|
|
19,476,031
|
|
|
30,266,929
|
|
|
Available for sale investments
|
|
|
-
|
|
|
2,391,329
|
|
|
-
|
|
|
1
|
|
|
2,391,330
|
|
|
86
|
|
|
-
|
|
|
2,907
|
|
|
2,993
|
|
|
2,394,323
|
|
|
Held to maturity investments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Guarantee deposits (margin accounts)
|
|
|
170,232
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
170,232
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
170,232
|
|
|
Total financial assets
|
|
|
2,827,643
|
|
|
5,798,664
|
|
|
2,451,466
|
|
|
5,504,699
|
|
|
16,582,472
|
|
|
6,214,328
|
|
|
3,808,562
|
|
|
11,838,090
|
|
|
21,860,980
|
|
|
38,443,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and other demand liabilities
|
|
|
8,741,417
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8,741,417
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8,741,417
|
|
|
Cash items in process of collection
|
|
|
163,043
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
163,043
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
163,043
|
|
|
Obligations under repurchase agreements
|
|
|
-
|
|
|
48,545
|
|
|
-
|
|
|
-
|
|
|
48,545
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
48,545
|
|
|
Time deposits and other time liabilities
|
|
|
122,974
|
|
|
5,248,418
|
|
|
4,108,556
|
|
|
3,326,199
|
|
|
12,806,147
|
|
|
191,547
|
|
|
6,137
|
|
|
63,988
|
|
|
261,672
|
|
|
13,067,819
|
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
131,378
|
|
|
120,361
|
|
|
349,551
|
|
|
601,290
|
|
|
495,789
|
|
|
471,185
|
|
|
949,464
|
|
|
1,916,438
|
|
|
2,517,728
|
|
|
Interbank borrowings
|
|
|
39,378
|
|
|
16,310
|
|
|
404,575
|
|
|
1,188,692
|
|
|
1,648,955
|
|
|
139,671
|
|
|
-
|
|
|
-
|
|
|
139,671
|
|
|
1,788,626
|
|
|
Issued debts instruments
|
|
|
-
|
|
|
71,465
|
|
|
39,267
|
|
|
745,830
|
|
|
856,562
|
|
|
2,431,849
|
|
|
1,549,743
|
|
|
3,277,079
|
|
|
7,258,671
|
|
|
8,115,233
|
|
|
Other financial liabilities
|
|
|
179,681
|
|
|
934
|
|
|
2,412
|
|
|
22,844
|
|
|
205,871
|
|
|
9,261
|
|
|
92
|
|
|
176
|
|
|
9,529
|
|
|
215,400
|
|
|
Guarantees received (margin accounts)
|
|
|
540,091
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
540,091
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
540,091
|
|
|
Total financial liabilities
|
|
|
9,786,584
|
|
|
5,517,050
|
|
|
4,675,171
|
|
|
5,633,116
|
|
|
25,611,921
|
|
|
3,268,117
|
|
|
2,027,157
|
|
|
4,290,707
|
|
|
9,585,981
|
|
|
35,197,902
|
|
|
|
(1)
|
Interbank loans are presented on a gross basis, the amount of allowances is Ch$29 million.
|
|
|
(2)
|
Loans and accounts receivables from customers are presented on a gross basis. Provisions amounts according to type of loan
are detailed as follows: Commercial loans Ch$472,876 million, Mortgage loans Ch$64,241 million, Consumer loans Ch$259,442 million.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
94
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 20
MATURITY OF FINANCIAL ASSETS AND LIABILITIES,
continued
|
|
|
|
|
|
|
|
|
Between 1
|
|
|
Between 3
|
|
|
|
|
|
Between 1
|
|
|
Between 3
|
|
|
|
|
|
Subtotal
|
|
|
|
|
|
|
|
|
|
|
Up to
|
|
|
and
|
|
|
and
|
|
|
Subtotal
|
|
|
and
|
|
|
and
|
|
|
More than
|
|
|
More than 1
|
|
|
|
|
|
|
|
Demand
|
|
|
1 month
|
|
|
3 months
|
|
|
12 months
|
|
|
up to 1 year
|
|
|
3 years
|
|
|
5 years
|
|
|
5 years
|
|
|
year
|
|
|
Total
|
|
|
As of December 31, 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
1,452,922
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,452,922
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,452,922
|
|
|
Cash items in process of collection
|
|
|
668,145
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
668,145
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
668,145
|
|
|
Trading investments
|
|
|
-
|
|
|
|
72,983
|
|
|
|
4,024
|
|
|
|
68,277
|
|
|
|
145,284
|
|
|
|
110,824
|
|
|
|
90,507
|
|
|
|
139,121
|
|
|
|
340,452
|
|
|
|
485,736
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
|
135,780
|
|
|
|
198,876
|
|
|
|
410,415
|
|
|
|
745,071
|
|
|
|
385,428
|
|
|
|
371,090
|
|
|
|
737,058
|
|
|
|
1,493,576
|
|
|
|
2,238,647
|
|
|
Interbank loans (1)
|
|
|
-
|
|
|
|
6,064
|
|
|
|
152,911
|
|
|
|
3,710
|
|
|
|
162,685
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
162,685
|
|
|
Loans and accounts receivables from customers (2)
|
|
|
769,823
|
|
|
|
2,206,734
|
|
|
|
2,288,372
|
|
|
|
4,348,975
|
|
|
|
9,613,904
|
|
|
|
5,187,501
|
|
|
|
2,938,326
|
|
|
|
9,823,498
|
|
|
|
17,949,325
|
|
|
|
27,563,229
|
|
|
Available for sale investments
|
|
|
-
|
|
|
|
58,850
|
|
|
|
11,788
|
|
|
|
102,600
|
|
|
|
173,238
|
|
|
|
556,289
|
|
|
|
975,372
|
|
|
|
869,647
|
|
|
|
2,401,308
|
|
|
|
2,574,546
|
|
|
Held to maturity investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Guarantee deposits (margin accounts)
|
|
|
323,767
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
323,767
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
323,767
|
|
|
Total assets
|
|
|
3,214,657
|
|
|
|
2,480,411
|
|
|
|
2,655,971
|
|
|
|
4,933,977
|
|
|
|
13,285,016
|
|
|
|
6,240,042
|
|
|
|
4,375,295
|
|
|
|
11,569,324
|
|
|
|
22,184,661
|
|
|
|
35,469,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and other demand liabilities
|
|
|
7,768,166
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,768,166
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,768,166
|
|
|
Cash items in process of collection
|
|
|
486,726
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
486,726
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
486,726
|
|
|
Obligations under repurchase agreements
|
|
|
-
|
|
|
|
268,061
|
|
|
|
-
|
|
|
|
-
|
|
|
|
268,061
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
268,061
|
|
|
Time deposits and other time liabilities
|
|
|
121,479
|
|
|
|
5,120,171
|
|
|
|
4,201,271
|
|
|
|
2,299,018
|
|
|
|
11,741,939
|
|
|
|
106,833
|
|
|
|
2,811
|
|
|
|
62,362
|
|
|
|
172,006
|
|
|
|
11,913,945
|
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
|
144,410
|
|
|
|
196,444
|
|
|
|
356,288
|
|
|
|
697,142
|
|
|
|
378,582
|
|
|
|
358,358
|
|
|
|
705,406
|
|
|
|
1,442,346
|
|
|
|
2,139,488
|
|
|
Interbank borrowings
|
|
|
4,130
|
|
|
|
46,013
|
|
|
|
397,419
|
|
|
|
1,030,241
|
|
|
|
1,477,803
|
|
|
|
220,554
|
|
|
|
-
|
|
|
|
-
|
|
|
|
220,554
|
|
|
|
1,698,357
|
|
|
Issued debts instruments
|
|
|
-
|
|
|
|
21,043
|
|
|
|
55,119
|
|
|
|
274,239
|
|
|
|
350,401
|
|
|
|
1,727,571
|
|
|
|
2,104,771
|
|
|
|
2,910,910
|
|
|
|
6,743,252
|
|
|
|
7,093,653
|
|
|
Other financial liabilities
|
|
|
177,663
|
|
|
|
701
|
|
|
|
2,583
|
|
|
|
31,879
|
|
|
|
212,826
|
|
|
|
27,581
|
|
|
|
404
|
|
|
|
1,219
|
|
|
|
29,204
|
|
|
|
242,030
|
|
|
Guarantees received (margin accounts)
|
|
|
408,313
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
408,313
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
408,313
|
|
|
Total liabilities
|
|
|
8,966,477
|
|
|
|
5,600,399
|
|
|
|
4,852,836
|
|
|
|
3,991,665
|
|
|
|
23,411,377
|
|
|
|
2,461,121
|
|
|
|
2,466,344
|
|
|
|
3,679,897
|
|
|
|
8,607,362
|
|
|
|
32,018,739
|
|
|
|
(1)
|
Interbank loans are presented on a gross basis, the amount of allowances is Ch$86 million.
|
|
|
(2)
|
Loans and accounts receivables from customers are presented on a gross basis. Provisions on loans
amounts according to customer type: Commercial loans Ch$462,865 million, Mortgage loans Ch$69,066 million, Consumer loans Ch$283,756
million.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
95
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 21
PROVISIONS
|
|
a)
|
As of December 31, 2018, and 2017, the detail for the provisions is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Provision for employee salaries and expenses
|
|
|
93,379
|
|
|
|
97,576
|
|
|
Provision for mandatory dividends
|
|
|
177,571
|
|
|
|
169,444
|
|
|
Provision for contingent loan risks:
|
|
|
|
|
|
|
|
|
|
Provision for lines of credit of immediate disponibility
|
|
|
14,177
|
|
|
|
15,103
|
|
|
Other provisions for contingent loans
|
|
|
15,230
|
|
|
|
14,304
|
|
|
Provision for contingencies
|
|
|
8,963
|
|
|
|
27,303
|
|
|
Provision additional
|
|
|
20,000
|
|
|
|
-
|
|
|
Provision for foreign bank loans
|
|
|
620
|
|
|
|
599
|
|
|
Total
|
|
|
329,940
|
|
|
|
324,329
|
|
|
|
b)
|
Below is the activity regarding provisions during the year
ended December 31, 2018 and 2017:
|
|
|
Provision
|
|
|
|
|
|
|
|
Benefits and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
remunerations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to the
|
|
|
Risk of credits
|
|
|
|
|
|
|
|
|
Minimum
|
|
|
Risk
|
|
|
|
|
|
|
|
staff
|
|
|
quotas
|
|
|
Contingent
|
|
|
Additional
|
|
|
dividends
|
|
|
country
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
97,576
|
|
|
|
29,407
|
|
|
|
27,303
|
|
|
|
-
|
|
|
|
169,444
|
|
|
|
599
|
|
|
|
324,329
|
|
|
Provision established
|
|
|
80,912
|
|
|
|
5,011
|
|
|
|
19,447
|
|
|
|
20,000
|
|
|
|
177,571
|
|
|
|
200
|
|
|
|
303,141
|
|
|
Application of provisions
|
|
|
(72,975
|
)
|
|
|
-
|
|
|
|
(4,431
|
)
|
|
|
-
|
|
|
|
(169,444
|
)
|
|
|
-
|
|
|
|
(246,850
|
)
|
|
Provisions released
|
|
|
(3,195
|
)
|
|
|
(5,011
|
)
|
|
|
(33,356
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(179
|
)
|
|
|
(41,741
|
)
|
|
Re-Classification
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
(8,939
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,939
|
)
|
|
Balances as of December 31, 2018
|
|
|
93,379
|
|
|
|
29,407
|
|
|
|
8,963
|
|
|
|
20,000
|
|
|
|
177,571
|
|
|
|
620
|
|
|
|
329,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
72,592
|
|
|
|
28,900
|
|
|
|
65,404
|
|
|
|
-
|
|
|
|
141,700
|
|
|
|
386
|
|
|
|
308,982
|
|
|
Provision established
|
|
|
106,687
|
|
|
|
9,168
|
|
|
|
8,645
|
|
|
|
-
|
|
|
|
169,444
|
|
|
|
464
|
|
|
|
294,408
|
|
|
Application of provisions
|
|
|
(81,703
|
)
|
|
|
-
|
|
|
|
(389
|
)
|
|
|
-
|
|
|
|
(141,700
|
)
|
|
|
-
|
|
|
|
(223,792
|
)
|
|
Provisions released
|
|
|
-
|
|
|
|
(8,661
|
)
|
|
|
(46,357
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(251
|
)
|
|
|
(55,269
|
)
|
|
Re-Classification
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Balances as of December 31, 2017
|
|
|
97,576
|
|
|
|
29,407
|
|
|
|
27,303
|
|
|
|
-
|
|
|
|
169,444
|
|
|
|
599
|
|
|
|
324,329
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
96
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 21
PROVISIONS, continued
|
|
c)
|
Provisions for personal salaries and expenses
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Provision for seniority compensation
|
|
|
9,531
|
|
|
|
17,874
|
|
|
Provision for stock-based personal benefits
|
|
|
-
|
|
|
|
-
|
|
|
Provision for performance bonds
|
|
|
59,633
|
|
|
|
53,947
|
|
|
Provision for vacation
|
|
|
22,792
|
|
|
|
23,039
|
|
|
Provision for other personal benefits
|
|
|
1,423
|
|
|
|
2,716
|
|
|
Total
|
|
|
93,379
|
|
|
|
97,576
|
|
|
|
d)
|
Compensation year of services
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Balances as of January, 2018
|
|
|
17,874
|
|
|
|
10,376
|
|
|
Increase in the provision
|
|
|
10,753
|
|
|
|
29,545
|
|
|
Payments made
|
|
|
(8,414
|
)
|
|
|
(22,047
|
)
|
|
Advance payments
|
|
|
-
|
|
|
|
-
|
|
|
Released of provisions
|
|
|
(2,858
|
)
|
|
|
-
|
|
|
Other movements
|
|
|
(7,824
|
)
|
|
|
-
|
|
|
Total
|
|
|
9,531
|
|
|
|
17,874
|
|
|
|
e)
|
Movement of the provision for compliance bonds:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
53,947
|
|
|
|
38,510
|
|
|
Provisions constituted
|
|
|
58,229
|
|
|
|
55,961
|
|
|
Provisioning application
|
|
|
(51,954
|
)
|
|
|
(40,524
|
)
|
|
Release of provisions
|
|
|
(337
|
)
|
|
|
-
|
|
|
Other movements
|
|
|
(252
|
)
|
|
|
-
|
|
|
Total
|
|
|
59,633
|
|
|
|
53,947
|
|
|
|
f)
|
Movement of holyday provision
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
23,039
|
|
|
|
21,800
|
|
|
Provisions constituted
|
|
|
11,167
|
|
|
|
11,263
|
|
|
Provisioning application
|
|
|
(10,551
|
)
|
|
|
(10,024
|
)
|
|
Release of provisions
|
|
|
-
|
|
|
|
-
|
|
|
Other movements
|
|
|
(863
|
)
|
|
|
-
|
|
|
Total
|
|
|
22,792
|
|
|
|
23,039
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
97
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE
22
OTHER LIABILITIES
Other liabilities consist of:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Accounts and notes payable
|
|
|
163,216
|
|
|
|
196,965
|
|
|
Income received in advance
|
|
|
673
|
|
|
|
601
|
|
|
Valuation Adjustments by macrohedge
|
|
|
7,039
|
|
|
|
-
|
|
|
Guarantees received (margin accounts) (1)
|
|
|
540,091
|
|
|
|
408,313
|
|
|
Notes payable through brokerage and simultaneous transactions
|
|
|
50,807
|
|
|
|
17,799
|
|
|
Other payable obligations
|
|
|
94,779
|
|
|
|
58,921
|
|
|
Withheld VAT
|
|
|
1,990
|
|
|
|
1,887
|
|
|
Accounts payable by insurance companies
|
|
|
8,424
|
|
|
|
13,873
|
|
|
Other liabilities
|
|
|
33,389
|
|
|
|
47,004
|
|
|
Total
|
|
|
900,408
|
|
|
|
745,363
|
|
|
|
(1)
|
Guarantee deposits threshold (margin accounts) correspond collaterals associated with derivative financial
contracts to mitigate the counterparty credit risk and are mainly established in cash. These guarantees operate when mark to market
of derivative financial instruments exceed the levels of threshold agreed in the contracts, which could result the Bank deliver
or receive collateral.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
98
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 23
CONTINGENCIES AND COMMITMENTS
|
|
a)
|
Lawsuits and legal procedures
|
At the date these financial statements were
issued, the Bank and its affiliates were subject to certain legal actions in the normal course of their business. As of December
31, 2018, the Banks and its subsidiaries have provisions for this item of Ch$923 million and Ch$0million, respectively (Ch$1,214
million and Ch$0 million as of December 31, 2017) which is included in “Provisions” in the Consolidated Statement of
Financial Position as provisions for contingencies.
As of December 31, 2018, the following legal situations are pending:
Santander Corredores de Bolsa Limitada
Judgment “Echeverría with Santander Corredora”
(currently Santander Corredores de Bolsa Ltda,), followed before the 21st Civil Court of Santiago, Case C-21,366-2014, on compensation
for damages for faults in the purchase of shares, With regard to its actual situation as of December 31, 2018. Santander Corredores
de Bolsa Limitada requested the Court to declare the proceeding abandoned due to the pending actions of the plaintiff, a situation
that is pending for the Court to resolve.
Santander Corredora de Seguros Limitada
There are lawsuits amounting to UF3,790 corresponding to processes mainly for goods delivered in leasing,
our lawyers have not estimated additional material losses for these trials.
To meet customer needs, the Bank acquired several
irrevocable commitments and contingent liabilities, although these obligations should not be recognized in the Consolidated Statement
of Financial Position, these contain credit risks and are therefore part of the Bank’s overall risk.
The following table shows the Bank’s contractual obligations
to issue loans:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Letters of credit issued
|
|
|
223,420
|
|
|
|
201,699
|
|
|
Foreign letters of credit confirmed
|
|
|
57,038
|
|
|
|
75,499
|
|
|
Performance guarantees
|
|
|
1,954,205
|
|
|
|
1,823,793
|
|
|
Personal guarantees
|
|
|
133,623
|
|
|
|
81,577
|
|
|
Subtotal
|
|
|
2,368,286
|
|
|
|
2,182,568
|
|
|
Available on demand credit lines
|
|
|
8,997,650
|
|
|
|
8,135,489
|
|
|
Other irrevocable credit commitments
|
|
|
327,297
|
|
|
|
260,691
|
|
|
Total
|
|
|
11,693,223
|
|
|
|
10,578,748
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
99
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 23
CONTINGENCIES AND COMMITMENTS, continued
The Bank holds securities in the normal course
of its business as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Third party operations
|
|
|
|
|
|
|
|
|
|
Collections
|
|
|
99,784
|
|
|
|
175,200
|
|
|
Transferred financial assets managed by the Bank
|
|
|
26,262
|
|
|
|
33,278
|
|
|
Assets from third parties managed by the Bank and its affiliates
|
|
|
1,630,431
|
|
|
|
1,660,804
|
|
|
Subtotal
|
|
|
1,756,477
|
|
|
|
1,869,282
|
|
|
Custody of securities
|
|
|
|
|
|
|
|
|
|
Securities held in custody
|
|
|
11,160,488
|
|
|
|
383,002
|
|
|
Securities held in custody deposited in other entity
|
|
|
861,405
|
|
|
|
760,083
|
|
|
Issued securities held in custody
|
|
|
12,335,871
|
|
|
|
22,046,700
|
|
|
Subtotal
|
|
|
24,357,764
|
|
|
|
23,189,785
|
|
|
Total
|
|
|
26,114,241
|
|
|
|
25,059,067
|
|
During 2018, the Bank classified the portfolios
managed by private banking in “Assets from third parties managed by the Bank and its affiliates”. At the end of December
2018, the balance for this was Ch$1,630,396 million (Ch$1,660,768 million at December 31, 2017).
Banco Santander Chile has an integral bank
policy of coverage of Official Loyalty N°4668409 in force with the company Compañía de Seguros Chilena Consolidada SA, Coverage
USD 50,000,000 per claim with an annual limit of USD 100,000,000, which covers both the Bank and its subsidiaries, with an expiration
date of June 30, 2019.
Santander Agente de Valores Limitada
In order to ensure the correct and full compliance
of all its obligations as securities agent in accordance with the provisions of articles N° 30 and following of Law N°
18,045, on Stock Market, the company constituted a guarantee for UF4,000 with insurance policy N°217112981- taken with the
Insurance Company of Crédito Continental SA and whose maturity is December 19, 2019.
Santander Corredores de Bolsa Limitada
i) As of December 31, 2018, the Company has comprehensive guarantees in the Santiago Stock Exchange to cover
simultaneous operations carried out through its own portfolio, for a total of Ch$ 40,427,334 (Ch$ 25,218,779 as of December 31,
2017).
ii) Additionally, as of December 31, 2018, the Company holds a guarantee in CCLV Contraparte Central S.A.
in cash, for an amount of Ch$ 5,000,000 (Ch$ 5,000,000 as of December 31, 2017).
iii) In order to ensure the correct and full
compliance of all its obligations as Brokerage Broker, in accordance with the provisions of articles 30 and following of Law N°18,045
on Securities Market, the Company has delivered fixed-income securities to the Santiago Stock Exchange for a present value of Ch$1,008,792
as of December 31, 2018 (Ch$ 1,014,400 as of December 31, 2017).
iv) As of December 31, 2018, the Company has
a guarantee voucher N° B011364 from Banco Santander Chile to comply with the provisions of general rule N° 120 of the Commission
for the Financial Market (Ex-SVS) with respect to the placement, transfer and redemption of the Morgan Stanley funds in the amount
of USD $ 300,000, which covers the participants who acquire quotas of foreign open funds Morgan Stanley Sicav and whose maturity
is 23 February 2019.
v) As of December 31, 2018, the Company has
a guarantee voucher N° B012308 from Banco Santander Chile to comply with the provisions of general rule N° 120 of the Commission
for the Financial Market (Ex-SVS) with respect to the placement, transfer and redemption of the Morgan Stanley funds in the amount
of USD $ 300,000, which covers the participants who acquire quotas of foreign open funds Morgan Stanley Sicav and whose maturity
is 13 April 2019.
Consolidated Financial Statements December 2018 / Banco Santander Chile
100
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 23
CONTINGENCIES AND COMMITMENTS, continued
Santander Corredora de Seguros Limitada
i) In accordance with those established in
Circular N° 1,160 of the Superintendency of Securities and Insurance, the company has contracted an insurance policy to respond
to the correct and full compliance with all obligations arising from its operations as an intermediary in the hiring insurance.
ii) The insurance policy for insurance brokers N ° 4461903, which covers UF 500, and the professional
liability policy for insurance brokers N° 4462082 for an amount equivalent to UF 60,000, were contracted with the Compañía
de Seguros Generales Chilena Consolidada S.A. both are valid from April 15, 2016 to April 14, 2018.
iii) The Company maintains a guarantee slip with Banco Santander Chile to guarantee the faithful fulfillment
of the public bidding rules of the tax and deductibility insurance plus ITP 2/3 of the mortgage portfolio for the housing of Banco
Santander Chile, the amount amounts to UF 10,000 for each portfolio respectively, both with an expiration date as of July 31, 2019.
For the same reason, the Company maintains a guarantee voucher in compliance with the public tender for fire and earthquake insurance,
the amount of which amounts to UF 200 and UF 3,000 with the same financial institution, both with an expiration date as of December
31, 2018.
Consolidated Financial Statements December 2018 / Banco Santander Chile
101
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 24
EQUITY
As of December 31, 2018, and 2017 the Bank had 188,446,126,794 shares outstanding, all of which are subscribed
for and paid in full, amounting to Ch$ 891,303 million. All shares have the same rights and have no preferences or restrictions.
The movement in shares during 2018 and 2017 is as follows:
|
|
|
Shares
|
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Issued as of January 1
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
|
Issuance of paid shares
|
|
|
-
|
|
|
|
-
|
|
|
Issuance of outstanding shares
|
|
|
-
|
|
|
|
-
|
|
|
Stock options exercised
|
|
|
-
|
|
|
|
-
|
|
|
Issued as period end
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
As of December 31, 2018, and 2017 the Bank
does not own any of its shares in treasury, nor do any of the consolidated companies.
As of December 31, 2018, the shareholder composition
is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
% share
|
|
|
Corporate
Name or Shareholder’s Name
|
|
Shares
|
|
|
ADRs
(*)
|
|
|
Total
|
|
|
holding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Chile Holding S.A.
|
|
|
66,822,519,695
|
|
|
|
-
|
|
|
|
66,822,519,695
|
|
|
|
35.46
|
|
|
Teatinos Siglo XXI Inversiones Limitada
|
|
|
59,770,481,573
|
|
|
|
-
|
|
|
|
59,770,481,573
|
|
|
|
31.72
|
|
|
The Bank of New York Mellon
|
|
|
-
|
|
|
|
26,486,000,071
|
|
|
|
26,486,000,071
|
|
|
|
14.05
|
|
|
Banks on behalf of third parties
|
|
|
15,451,106,985
|
|
|
|
-
|
|
|
|
15,451,106,985
|
|
|
|
8.20
|
|
|
Pension funds (AFP) on behalf of third parties
|
|
|
9,033,172,896
|
|
|
|
-
|
|
|
|
9,033,172,896
|
|
|
|
4.79
|
|
|
Stock brokers on behalf of third parties
|
|
|
4,773,558,507
|
|
|
|
-
|
|
|
|
4,773,558,507
|
|
|
|
2.53
|
|
|
Other minority holders
|
|
|
6,109,287,067
|
|
|
|
-
|
|
|
|
6,109,287,067
|
|
|
|
3.25
|
|
|
Total
|
|
|
161,960,126,723
|
|
|
|
26,486,000,071
|
|
|
|
188,446,126,794
|
|
|
|
100.00
|
|
|
|
(*)
|
American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S.
securities markets.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
102
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 24
EQUITY, continued
As of December 31, 2017, the shareholder composition is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
%
of equity
|
|
|
Corporate
Name or Shareholder`s Name
|
|
Shares
|
|
|
ADRs
(*)
|
|
|
Total
|
|
|
holding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander
Chile Holding S.A.
|
|
|
66,822,519,695
|
|
|
|
-
|
|
|
|
66,822,519,695
|
|
|
|
35,46
|
|
|
Teatinos Siglo XXI Inversiones
Limitada
|
|
|
59,770,481,573
|
|
|
|
-
|
|
|
|
59,770,481,573
|
|
|
|
31,72
|
|
|
The Bank of New York
Mellon
|
|
|
-
|
|
|
|
31,238,866,071
|
|
|
|
31,238,866,071
|
|
|
|
16,58
|
|
|
Banks on behalf of third
parties
|
|
|
13,892,691,988
|
|
|
|
-
|
|
|
|
13,892,691,988
|
|
|
|
7,37
|
|
|
Pension fund (AFP) on
behalf of third parties
|
|
|
6,896,552,755
|
|
|
|
-
|
|
|
|
6,896,552,755
|
|
|
|
3,66
|
|
|
Stock brokers on behalf
of third parties
|
|
|
3,762,310,365
|
|
|
|
-
|
|
|
|
3,762,310,365
|
|
|
|
2,00
|
|
|
Other
minority holders
|
|
|
6,062,704,347
|
|
|
|
-
|
|
|
|
6,062,704,347
|
|
|
|
3,21
|
|
|
Total
|
|
|
157,207,260,723
|
|
|
|
31,238,866,071
|
|
|
|
188,446,126,794
|
|
|
|
100,00
|
|
|
|
(*)
|
American Depository Receipts (ADR) are certificates issued by a U,S, commercial bank to be traded on the U.S.
securities markets.
|
During the year 2018, on the occasion of the shareholders’
meeting held in April, it was agreed to capitalize 25% of profits for reserves in 2017, equivalent to $141,204 million ($141,706
million for 2017).
The distribution of dividends has been disclosed in the
Consolidated Statements of Changes in Equity.
|
|
d)
|
Diluted earnings per share and basic earnings per share
|
As of December 31, 2018, and 2017, the composition of diluted earnings per share and basic earnings per share
are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
a) Basic earnings per share
|
|
|
|
|
|
|
|
|
|
Total attributable to equity holders of the Bank
|
|
|
591,902
|
|
|
|
564,815
|
|
|
Weighted average number of outstanding shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
|
Basic earnings per share (in Ch$)
|
|
|
3,141
|
|
|
|
2,997
|
|
|
|
|
|
|
|
|
|
|
|
|
b) Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
Total attributable to equity holders of the Bank
|
|
|
591,902
|
|
|
|
564,815
|
|
|
Weighted average number of outstanding shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
|
Assumed conversion of convertible debt
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted number of shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
|
Diluted earnings per share (in Ch$)
|
|
|
3,141
|
|
|
|
2,997
|
|
As of December 31, 2018, and 2017, the Bank does not own instruments with dilutive effects.
Consolidated Financial Statements December 2018 / Banco Santander Chile
103
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 24
EQUITY, continued
|
|
e)
|
Other comprehensive income of available for sale investments
and cash flow hedges:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
As of January 1,
|
|
|
1,855
|
|
|
|
7,375
|
|
|
Gain (losses) on the re-valuation of available for sale investments, before tax
|
|
|
6,071
|
|
|
|
(10,384
|
)
|
|
Reclassification from other comprehensive income to net income for the year
|
|
|
-
|
|
|
|
-
|
|
|
Net income realized
|
|
|
(1,502
|
)
|
|
|
4,864
|
|
|
Subtotal
|
|
|
4,569
|
|
|
|
(5,520
|
)
|
|
Total
|
|
|
6,424
|
|
|
|
1,855
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
As of January 1,
|
|
|
(3,562
|
)
|
|
|
2,288
|
|
|
Gains (losses) on the re-valuation of cash flow hedges, before tax
|
|
|
14,048
|
|
|
|
(5,850
|
)
|
|
Reclassification and adjustments on cash flow hedges, before tax
|
|
|
(683
|
)
|
|
|
-
|
|
|
Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or assignment was hedged as a highly probable transaction
|
|
|
-
|
|
|
|
-
|
|
|
Subtotal
|
|
|
13,365
|
|
|
|
(5,850
|
)
|
|
Total
|
|
|
9,803
|
|
|
|
(3,562
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, before tax
|
|
|
16,227
|
|
|
|
(1,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax related to other comprehensive income components
|
|
|
|
|
|
|
|
|
|
Income tax relating to available for sale investments
|
|
|
(1,735
|
)
|
|
|
(473
|
)
|
|
Income tax relating to cash flow hedges
|
|
|
(2,646
|
)
|
|
|
908
|
|
|
Total
|
|
|
(4,381
|
)
|
|
|
435
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax
|
|
|
11,846
|
|
|
|
(1,272
|
)
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the Bank
|
|
|
(10,890
|
)
|
|
|
(2,312
|
)
|
|
Non-controlling interest
|
|
|
956
|
|
|
|
1,040
|
|
The Bank expects that the results included
in “Other comprehensive income” will be reclassified to profit or loss when the specific conditions have been met.
Consolidated Financial Statements December 2018 / Banco Santander Chile
104
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 24
CAPITAL REQUIREMENTS (BASEL)
In accordance with Chilean General Banking
Law, the Bank must maintain a minimum ratio of effective equity to risk-weighted consolidated assets of 8% net of required allowances,
and a minimum ratio of basic equity to consolidated total assets of 3%, net of required allowances. However, as a result of the
Bank’s merger in 2002, the SBIF has determined that the Bank’s combined effective equity cannot be lower than 11% of
its risk-weighted assets. Effective net equity is defined for these purposes as basic equity (capital and reserves) plus subordinated
bonds, up to a maximum of 50% of basic equity.
Assets are allocated to different risk categories,
each of which is assigned a weighting percentage according to the amount of capital required to be held for each type of asset.
For example, cash, deposits in banks and financial instruments issued by the Central Bank of Chile have a 0% risk weighting, meaning
that it is not necessary to hold equity to back these assets according to current regulations, Property, plant and equipment have
a 100% risk weighting, meaning that a minimum capital equivalent to 11% of these assets must be held. All derivatives traded off
the exchanges are also assigned a risk weighting, using a conversion factor applied to their notional values, to determine the
amount of their exposure to credit risk, Off-balance-sheet contingent credits are also included for weighting purposes, as “Credit
equivalents,”.
According to Chapter 12-1 of the SBIF’s
Recopilación Actualizada de Normas [Updated Compilation of Rules] effective January 2010, the SBIF changed existing regulation
with the enforcement of Chapter B-3 from the Compendium of Accounting Standards, which changed the risk exposure of contingent
allocations from 100% exposure to the following:
|
Type of contingent loan
|
|
Exposure
|
|
|
|
|
|
|
|
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
|
|
|
35
|
%
|
|
g) Other loan commitments:
|
|
|
|
|
|
- Higher education loans Law No, 20,027
|
|
|
15
|
%
|
|
- Other
|
|
|
100
|
%
|
|
h) Other contingent loans
|
|
|
100
|
%
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
105
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 25
CAPITAL REQUIREMENTS (BASEL), continued
The levels of basic capital and effective net
equity as of December 31, 2018 and 2017, are as follows:
|
|
|
Consolidated assets
|
|
|
Risk-weighted assets
|
|
|
|
|
As of December 31,
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance-sheet assets (net of allowances)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
2,065,441
|
|
|
|
1,452,922
|
|
|
|
-
|
|
|
|
-
|
|
|
Cash in process of collection
|
|
|
353,757
|
|
|
|
668,145
|
|
|
|
105,421
|
|
|
|
300,302
|
|
|
Trading investments
|
|
|
77,041
|
|
|
|
485,736
|
|
|
|
10,704
|
|
|
|
25,031
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Financial derivative contracts (*)
|
|
|
1,226,892
|
|
|
|
1,014,070
|
|
|
|
868,578
|
|
|
|
718,426
|
|
|
Interbank loans, net
|
|
|
15,065
|
|
|
|
162,599
|
|
|
|
15,064
|
|
|
|
162,598
|
|
|
Loans and accounts receivables from customers, net
|
|
|
29,470,370
|
|
|
|
26,747,542
|
|
|
|
25,403,426
|
|
|
|
23,102,177
|
|
|
Available for sale investments
|
|
|
2,394,323
|
|
|
|
2,574,546
|
|
|
|
172,859
|
|
|
|
147,894
|
|
|
Investments in associates and other companies
|
|
|
32,293
|
|
|
|
27,585
|
|
|
|
32,293
|
|
|
|
27,585
|
|
|
Intangible assets
|
|
|
66,923
|
|
|
|
63,219
|
|
|
|
66,923
|
|
|
|
63,219
|
|
|
Property, plant, and equipment
|
|
|
253,586
|
|
|
|
242,547
|
|
|
|
253,586
|
|
|
|
242,547
|
|
|
Current taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Deferred taxes
|
|
|
382,934
|
|
|
|
385,608
|
|
|
|
38,293
|
|
|
|
38,561
|
|
|
Other assets
|
|
|
984,988
|
|
|
|
755,184
|
|
|
|
983,299
|
|
|
|
722,617
|
|
|
Off-balance-sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans
|
|
|
4,624,073
|
|
|
|
4,133,897
|
|
|
|
2,649,730
|
|
|
|
2,360,877
|
|
|
Total
|
|
|
41,947,686
|
|
|
|
38,713,600
|
|
|
|
30,600,176
|
|
|
|
27,911,834
|
|
|
|
(*)
|
“Financial
derivative contracts” are presented at their “Credit Equivalent Risk” value as established in Chapter 12-1 of
the Updated Compilation
of Rules issued by the SBIF.
|
The ratios of basic capital and effective net equity at the close
of each period are as follows:
|
|
|
Ratio
|
|
|
|
|
As of December 31,
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic capital
|
|
|
3,239,546
|
|
|
|
3,066,180
|
|
|
|
7.72
|
|
|
|
7.92
|
|
|
Effective net equity
|
|
|
4,101,664
|
|
|
|
3,881,252
|
|
|
|
13.40
|
|
|
|
13.91
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
106
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 26
NON-CONTROLLING INTEREST
|
|
a)
|
It reflects the net amount of equity of dependent entities
attributable to capital instruments which do not belong, directly or indirectly, to the Bank, including the portion of the income
for the period that has been attributed to them.
|
The non-controlling interest included
in the equity and the income from the subsidiaries is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
Non-
|
|
|
|
|
|
|
|
|
Available for
|
|
|
|
|
|
Total other
|
|
|
|
|
|
As of December 31, 2018
|
|
controlling
|
|
|
|
|
|
|
|
|
sale
|
|
|
Deferred
|
|
|
comprehensive
|
|
|
Comprehensive
|
|
|
|
|
interest
|
|
|
Equity
|
|
|
Income
|
|
|
investments
|
|
|
tax
|
|
|
income
|
|
|
income
|
|
|
|
|
%
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Agente de Valores Limitada
|
|
|
0.97
|
%
|
|
|
488
|
|
|
|
99
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
99
|
|
|
Santander S,A, Sociedad Securitizadora
|
|
|
0.36
|
%
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Santander Corredores de Bolsa Limitada
|
|
|
49.00
|
%
|
|
|
21,673
|
|
|
|
755
|
|
|
|
(84
|
)
|
|
|
2
|
|
|
|
(82
|
)
|
|
|
673
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
0.24
|
%
|
|
|
172
|
|
|
|
4
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
2
|
|
|
Subtotal
|
|
|
|
|
|
|
22,335
|
|
|
|
858
|
|
|
|
(86
|
)
|
|
|
2
|
|
|
|
(84
|
)
|
|
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entities controlled through other considerations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bansa Santander S.A. (1)
|
|
|
100
|
|
|
|
20,051
|
|
|
|
2,650
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,650
|
|
|
Santander Gestión de Recaudación
y Cobranzas Limitada
|
|
|
100
|
|
|
|
3,777
|
|
|
|
852
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
852
|
|
|
Subtotal
|
|
|
|
|
|
|
23,828
|
|
|
|
3,502
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
46,163
|
|
|
|
4,360
|
|
|
|
(86
|
)
|
|
|
2
|
|
|
|
(84
|
)
|
|
|
4,276
|
|
|
|
(1)
|
In September 2018, the company Bansa Santander S.A., held
a legal assignment of rights by leasing contract, which resulted in a result of $2,122 million before taxes.
|
|
|
(2)
|
According to indicated in note 1 ii) Bansa Santander S.A. it is an entity controlled by the Bank for reasons
other than its participation in the equity, therefore the result of this company is assigned entirely to the non-controlling interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
Non-
|
|
|
|
|
|
|
|
|
Available for
|
|
|
|
|
|
Total other
|
|
|
|
|
|
As of December 31, 2017
|
|
controlling
|
|
|
|
|
|
|
|
|
sale
|
|
|
Deferred
|
|
|
comprehensive
|
|
|
Comprehensive
|
|
|
|
|
interest
|
|
|
Equity
|
|
|
Income
|
|
|
investments
|
|
|
tax
|
|
|
income
|
|
|
income
|
|
|
|
|
%
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Agente de Valores Limitada
|
|
|
0.97
|
|
|
|
389
|
|
|
|
132
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
132
|
|
|
Santander S,A, Sociedad Securitizadora
|
|
|
0.36
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Santander Corredores de Bolsa Limitada
|
|
|
49.00
|
|
|
|
21,000
|
|
|
|
702
|
|
|
|
470
|
|
|
|
(134
|
)
|
|
|
336
|
|
|
|
1,038
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
0.24
|
|
|
|
167
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
Subtotal
|
|
|
|
|
|
|
21,557
|
|
|
|
838
|
|
|
|
470
|
|
|
|
(134
|
)
|
|
|
336
|
|
|
|
1,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entities controlled through other considerations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bansa Santander S.A.
|
|
|
100.00
|
|
|
|
17,401
|
|
|
|
10,869
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,869
|
|
|
Santander Gestión de Recaudación
y Cobranzas Limitada
|
|
|
100.00
|
|
|
|
2,925
|
|
|
|
741
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
741
|
|
|
Subtotal
|
|
|
|
|
|
|
20,326
|
|
|
|
11,610
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
41,883
|
|
|
|
12,448
|
|
|
|
470
|
|
|
|
(134
|
)
|
|
|
336
|
|
|
|
12,784
|
|
|
|
(1)
|
In September 2018, the company Bansa Santander S.A. held a legal assignment of rights by leasing contract,
which resulted in a result of $ 20,663 million before taxes ($ 15,197 million net of taxes).
|
|
|
(2)
|
According to indicated in note 1 ii) Bansa Santander S.A. it is an entity controlled by the Bank for reasons
other than its participation in the equity, therefore the result of this company is assigned entirely to the non-controlling interest.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
107
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 26
NON-CONTROLLING INTEREST, continued
|
|
b)
|
A summary of the financial information of subsidiaries
included in the consolidation with non-controlling interests (before consolidation or conforming adjustments) is as follows:
|
|
|
|
As
of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Capital
|
|
|
Income
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Capital
|
|
|
Income
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
77,764
|
|
|
|
9,595
|
|
|
|
66,374
|
|
|
|
1,795
|
|
|
|
76,177
|
|
|
|
9,803
|
|
|
|
64,937
|
|
|
|
1,437
|
|
|
Santander Corredores de Bolsa Limitada
|
|
|
102,228
|
|
|
|
57,999
|
|
|
|
42,691
|
|
|
|
1,538
|
|
|
|
88,711
|
|
|
|
45,855
|
|
|
|
41,424
|
|
|
|
1,432
|
|
|
Santander Agente de Valores Limitada
|
|
|
50,552
|
|
|
|
71
|
|
|
|
40,177
|
|
|
|
10,304
|
|
|
|
44,910
|
|
|
|
4,732
|
|
|
|
26,569
|
|
|
|
13,609
|
|
|
Santander S.A. Sociedad Securitizadora
|
|
|
704
|
|
|
|
66
|
|
|
|
728
|
|
|
|
(90
|
)
|
|
|
400
|
|
|
|
50
|
|
|
|
432
|
|
|
|
(82
|
)
|
|
Santander Gestión de Recaudación y Cobranzas Ltda.
|
|
|
6,932
|
|
|
|
3,155
|
|
|
|
2,925
|
|
|
|
852
|
|
|
|
10,826
|
|
|
|
7,901
|
|
|
|
2,184
|
|
|
|
741
|
|
|
Bansa Santander S.A.
|
|
|
20,437
|
|
|
|
386
|
|
|
|
17,401
|
|
|
|
2,650
|
|
|
|
25,535
|
|
|
|
8,134
|
|
|
|
6,533
|
|
|
|
10,868
|
|
|
Total
|
|
|
258,617
|
|
|
|
71,272
|
|
|
|
170,296
|
|
|
|
17,049
|
|
|
|
246,559
|
|
|
|
76,475
|
|
|
|
142,079
|
|
|
|
28,005
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
108
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 27
INTEREST INCOME
This item refers to interest earned in the period from the financial
assets whose return, whether implicitly or explicitly, is determined by applying the effective interest rate method, regardless
of the value at fair value, as well as the effect of hedge accounting.
|
|
a)
|
For the periods ended December 31, 2018 and 2017, the income
from interest income, not including income from hedge accounting, is attributable to the following items:
|
|
|
|
As
of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
Inflation
|
|
|
Prepaid
|
|
|
|
|
|
|
|
|
Inflation
|
|
|
Prepaid
|
|
|
|
|
|
|
|
Interest
|
|
|
adjustments
|
|
|
fees
|
|
|
Total
|
|
|
Interest
|
|
|
adjustments
|
|
|
fees
|
|
|
Total
|
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resale agreements
|
|
|
903
|
|
|
|
-
|
|
|
|
-
|
|
|
|
903
|
|
|
|
939
|
|
|
|
-
|
|
|
|
-
|
|
|
|
939
|
|
|
Interbank loans
|
|
|
897
|
|
|
|
-
|
|
|
|
-
|
|
|
|
897
|
|
|
|
969
|
|
|
|
-
|
|
|
|
-
|
|
|
|
969
|
|
|
Commercial loans
|
|
|
771,405
|
|
|
|
153,851
|
|
|
|
11,008
|
|
|
|
936,264
|
|
|
|
752,013
|
|
|
|
85,389
|
|
|
|
10,525
|
|
|
|
847,927
|
|
|
Mortgage loans
|
|
|
330,055
|
|
|
|
266,691
|
|
|
|
909
|
|
|
|
597,655
|
|
|
|
320,041
|
|
|
|
149,303
|
|
|
|
414
|
|
|
|
469,758
|
|
|
Consumer loans
|
|
|
579,929
|
|
|
|
439
|
|
|
|
6,166
|
|
|
|
586,534
|
|
|
|
612,932
|
|
|
|
363
|
|
|
|
4,738
|
|
|
|
618,033
|
|
|
Investment instruments
|
|
|
75,423
|
|
|
|
24,790
|
|
|
|
-
|
|
|
|
100,213
|
|
|
|
74,000
|
|
|
|
5,797
|
|
|
|
-
|
|
|
|
79,797
|
|
|
Other interest income
|
|
|
16,644
|
|
|
|
4,013
|
|
|
|
-
|
|
|
|
20,657
|
|
|
|
12,172
|
|
|
|
1,538
|
|
|
|
-
|
|
|
|
13,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income less income
from hedge accounting
|
|
|
1,775,256
|
|
|
|
449,784
|
|
|
|
18,083
|
|
|
|
2,243,123
|
|
|
|
1,773,066
|
|
|
|
242,390
|
|
|
|
15,677
|
|
|
|
2,031,133
|
|
|
|
b)
|
As indicated in section i) of Note 1, suspended interest
relates to loans with payments over 90 days overdue, which are recorded in off-balance sheet accounts until they are effectively
received.
|
As of December 31, 2018, and 2017, the suspended
interest and adjustments income consists of the following:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
Inflation
|
|
|
|
|
|
|
|
|
Inflation
|
|
|
|
|
|
|
|
Interest
|
|
|
adjustments
|
|
|
Total
|
|
|
Interest
|
|
|
adjustments
|
|
|
Total
|
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
13,453
|
|
|
|
8,904
|
|
|
|
22,357
|
|
|
|
12,709
|
|
|
|
7,703
|
|
|
|
20,412
|
|
|
Mortgage loans
|
|
|
3,030
|
|
|
|
6,304
|
|
|
|
9,334
|
|
|
|
2,871
|
|
|
|
4,999
|
|
|
|
7,870
|
|
|
Consumer loans
|
|
|
4,172
|
|
|
|
333
|
|
|
|
4,505
|
|
|
|
5,084
|
|
|
|
377
|
|
|
|
5,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
20,655
|
|
|
|
15,541
|
|
|
|
36,196
|
|
|
|
20,664
|
|
|
|
13,079
|
|
|
|
33,743
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
109
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 27
INTEREST INCOME, continued
|
|
c)
|
For the period ended December 31, 2018 and 2017, the expenses
from interest expense, excluding expense from hedge accounting, are as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
Inflation
|
|
|
|
|
|
|
|
|
Inflation
|
|
|
|
|
|
|
|
Interest
|
|
|
adjustments
|
|
|
Total
|
|
|
Interest
|
|
|
adjustments
|
|
|
Total
|
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
(14,914
|
)
|
|
|
(1,371
|
)
|
|
|
(16,285
|
)
|
|
|
(13,851
|
)
|
|
|
(695
|
)
|
|
|
(14,546
|
)
|
|
Repurchase agreements
|
|
|
(6,439
|
)
|
|
|
-
|
|
|
|
(6,439
|
)
|
|
|
(6,514
|
)
|
|
|
-
|
|
|
|
(6,514
|
)
|
|
Time deposits and liabilities
|
|
|
(317,061
|
)
|
|
|
(35,284
|
)
|
|
|
(352,345
|
)
|
|
|
(341,821
|
)
|
|
|
(20,509
|
)
|
|
|
(362,330
|
)
|
|
Interbank borrowings
|
|
|
(39,971
|
)
|
|
|
-
|
|
|
|
(39,971
|
)
|
|
|
(26,805
|
)
|
|
|
-
|
|
|
|
(26,805
|
)
|
|
Issued debt instruments
|
|
|
(241,455
|
)
|
|
|
(133,227
|
)
|
|
|
(374,682
|
)
|
|
|
(220,027
|
)
|
|
|
(76,170
|
)
|
|
|
(296,197
|
)
|
|
Other financial liabilities
|
|
|
(2,698
|
)
|
|
|
(110
|
)
|
|
|
(2,808
|
)
|
|
|
(2,946
|
)
|
|
|
(303
|
)
|
|
|
(3,249
|
)
|
|
Other interest expense
|
|
|
(6,929
|
)
|
|
|
(10,497
|
)
|
|
|
(17,426
|
)
|
|
|
(5,236
|
)
|
|
|
(4,973
|
)
|
|
|
(10,209
|
)
|
|
Interest expense less expenses from hedge accounting
|
|
|
(629,467
|
)
|
|
|
(180,489
|
)
|
|
|
(809,956
|
)
|
|
|
(617,200
|
)
|
|
|
(102,650
|
)
|
|
|
(719,850
|
)
|
|
|
d)
|
For the periods ended December 31, 2018 and 2017, the income
and expense from interest is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Interest income less income from hedge accounting
|
|
|
2,243,123
|
|
|
|
2,031,133
|
|
|
Interest expense less expense from hedge accounting
|
|
|
(809,956
|
)
|
|
|
(719,850
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest income (expense) from hedge accounting
|
|
|
1,433,167
|
|
|
|
1,311,283
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge accounting (net)
|
|
|
(18,799
|
)
|
|
|
15,408
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net interest income
|
|
|
1,414,368
|
|
|
|
1,326,691
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
110
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 28
FEES AND COMMISSIONS
|
|
a)
|
Fees and commissions includes the value of fees earned
and paid during the year, except those which are an integral part of the financial instrument’s effective interest rate:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Fee and commission income
|
|
|
|
|
|
|
|
|
|
Fees and commissions for lines of credits and overdrafts
|
|
|
6,624
|
|
|
|
7,413
|
|
|
Fees and commissions for guarantees and letters of credit
|
|
|
33,654
|
|
|
|
33,882
|
|
|
Fees and commissions for card services
|
|
|
218,903
|
|
|
|
201,791
|
|
|
Fees and commissions for management of accounts
|
|
|
33,865
|
|
|
|
31,901
|
|
|
Fees and commissions for collections and payments
|
|
|
40,077
|
|
|
|
44,312
|
|
|
Fees and commissions for intermediation and management of securities
|
|
|
10,147
|
|
|
|
10,090
|
|
|
Insurance brokerage fees
|
|
|
39,949
|
|
|
|
36,430
|
|
|
Office banking
|
|
|
15,921
|
|
|
|
15,669
|
|
|
Fees for other services rendered
|
|
|
45,633
|
|
|
|
43,123
|
|
|
Other fees earned
|
|
|
39,690
|
|
|
|
30,947
|
|
|
Total
|
|
|
484,463
|
|
|
|
455,558
|
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Fee and commission expense
|
|
|
|
|
|
|
|
|
|
Compensation for card operations
|
|
|
(163,794
|
)
|
|
|
(149,809
|
)
|
|
Fees and commissions for securities transactions
|
|
|
(936
|
)
|
|
|
(858
|
)
|
|
Office banking
|
|
|
(4,096
|
)
|
|
|
(15,283
|
)
|
|
Other fees
|
|
|
(24,752
|
)
|
|
|
(10,545
|
)
|
|
Total
|
|
|
(193,578
|
)
|
|
|
(176,495
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net fees and commissions income
|
|
|
290,885
|
|
|
|
279,063
|
|
The fees earned in transactions with letters of credit
are presented on the Consolidated Statement of Income in the item “Interest income”.
Consolidated Financial Statements December 2018 / Banco Santander Chile
111
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 28
FEES AND COMMISSIONS
|
|
a)
|
The income and expenses for the commissions of the business
segments are presented below and the calendar for the recognition of income from ordinary activities is opened.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
recognition calendar for
|
|
|
|
|
Segments
|
|
|
ordinary
activities
|
|
|
As of December 31, 2018
|
|
|
|
|
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individuals and
|
|
|
and
|
|
|
Global Corporate
|
|
|
|
|
|
|
|
|
Transferred over
|
|
|
Transferred at
|
|
|
|
|
|
|
|
PYMEs
|
|
|
institutional
|
|
|
Banking
|
|
|
Others
|
|
|
Total
|
|
|
time
|
|
|
a specific time
|
|
|
Accrual model
|
|
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions by credit lines and overdrafts
|
|
|
5,901
|
|
|
|
271
|
|
|
|
453
|
|
|
|
(1
|
)
|
|
|
6,624
|
|
|
|
6,624
|
|
|
|
-
|
|
|
|
-
|
|
|
Commissions for endorsements and letters of credit
|
|
|
11,099
|
|
|
|
16,258
|
|
|
|
6,239
|
|
|
|
58
|
|
|
|
33,654
|
|
|
|
33,654
|
|
|
|
-
|
|
|
|
-
|
|
|
Commissions for card services
|
|
|
211,615
|
|
|
|
6,193
|
|
|
|
1,036
|
|
|
|
59
|
|
|
|
218,903
|
|
|
|
34,856
|
|
|
|
184,047
|
|
|
|
-
|
|
|
Commissions for account management
|
|
|
30,386
|
|
|
|
2,678
|
|
|
|
799
|
|
|
|
2
|
|
|
|
33,865
|
|
|
|
33,865
|
|
|
|
-
|
|
|
|
-
|
|
|
Commissions for collections, collections and payments
|
|
|
66,780
|
|
|
|
1,693
|
|
|
|
458
|
|
|
|
(28,854
|
)
|
|
|
40,077
|
|
|
|
-
|
|
|
|
15,719
|
|
|
|
24,358
|
|
|
Commissions for intermediation and management of values
|
|
|
4,050
|
|
|
|
134
|
|
|
|
7,221
|
|
|
|
(1,258
|
)
|
|
|
10,147
|
|
|
|
-
|
|
|
|
10,147
|
|
|
|
-
|
|
|
Remuneration for insurance commercialization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39,949
|
|
|
|
39,949
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Office Banking
|
|
|
11,420
|
|
|
|
3,893
|
|
|
|
608
|
|
|
|
-
|
|
|
|
15,921
|
|
|
|
-
|
|
|
|
15,921
|
|
|
|
-
|
|
|
Other remuneration for services rendered
|
|
|
40,901
|
|
|
|
3,833
|
|
|
|
819
|
|
|
|
80
|
|
|
|
45,633
|
|
|
|
-
|
|
|
|
45,633
|
|
|
|
39,949
|
|
|
Other commissions earned
|
|
|
6,908
|
|
|
|
9,743
|
|
|
|
23,320
|
|
|
|
(281
|
)
|
|
|
39,690
|
|
|
|
|
|
|
|
39,690
|
|
|
|
-
|
|
|
Total
|
|
|
389,060
|
|
|
|
44,696
|
|
|
|
40,953
|
|
|
|
9,754
|
|
|
|
484,463
|
|
|
|
108,999
|
|
|
|
311,157
|
|
|
|
64,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remuneration for card operation
|
|
|
(159,817
|
)
|
|
|
(3,186
|
)
|
|
|
(134
|
)
|
|
|
(657
|
)
|
|
|
(163,794
|
)
|
|
|
-
|
|
|
|
(163,794
|
)
|
|
|
-
|
|
|
Commissions for operation with securities
|
|
|
(169
|
)
|
|
|
(3
|
)
|
|
|
(419
|
)
|
|
|
(345
|
)
|
|
|
(936
|
)
|
|
|
-
|
|
|
|
(936
|
)
|
|
|
-
|
|
|
Office banking
|
|
|
(2,374
|
)
|
|
|
(985
|
)
|
|
|
(722
|
)
|
|
|
(15
|
)
|
|
|
(4,096
|
)
|
|
|
-
|
|
|
|
(4,096
|
)
|
|
|
-
|
|
|
Other commissions
|
|
|
(6,168
|
)
|
|
|
(3,776
|
)
|
|
|
(4,614
|
)
|
|
|
(10,194
|
)
|
|
|
(24,752
|
)
|
|
|
-
|
|
|
|
(24,752
|
)
|
|
|
-
|
|
|
Total
|
|
|
(168,528
|
)
|
|
|
(7,950
|
)
|
|
|
(5,889
|
)
|
|
|
(11,211
|
)
|
|
|
(193,578
|
)
|
|
|
-
|
|
|
|
(193,578
|
)
|
|
|
-
|
|
|
Total income and expenses for net commissions
|
|
|
220,532
|
|
|
|
36,746
|
|
|
|
35,064
|
|
|
|
(1,457
|
)
|
|
|
290,885
|
|
|
|
108,999
|
|
|
|
117,579
|
|
|
|
64,307
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
112
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial
Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 29
NET INCOME (EXPENSE) FROM FINANCIAL OPERATIONS
Includes the amount of the adjustments from
the financial instruments variation, except those attributable to the interest accrued by the application of the effective interest
rate method of the value adjustments of the assets, as well as the results obtained in their sale.
For the periods ended December 31, 2018 and
2017, the detail of income from financial operations is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Profit and loss from financial operations
|
|
|
|
|
|
|
|
|
|
Trading derivatives
|
|
|
38,217
|
|
|
|
(18,974
|
)
|
|
Trading investments
|
|
|
9,393
|
|
|
|
10,008
|
|
|
Sale of loans and accounts receivables from customers
|
|
|
|
|
|
|
|
|
|
Current portfolio
|
|
|
(309
|
)
|
|
|
3,020
|
|
|
Charged-off portfolio
|
|
|
709
|
|
|
|
3,020
|
|
|
Available for sale investments
|
|
|
8,479
|
|
|
|
8,956
|
|
|
Repurchase of issued bonds
|
|
|
(840
|
)
|
|
|
(742
|
)
|
|
Other profit and loss from financial operations
|
|
|
(2,475
|
)
|
|
|
(2,492
|
)
|
|
Total
|
|
|
53,174
|
|
|
|
2,796
|
|
|
|
(1)
|
During 2018, the bank has repurchased bonds, see note N
° 5.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
113
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 30
NET FOREIGN EXCHANGE INCOME
Net foreign exchange income includes the income earned from foreign
currency trading, differences arising from converting monetary items in a foreign currency to the functional currency, and those
generated by non-monetary assets in a foreign currency at the time of their sale.
For the period ended December 31, 2018 and 2017, net foreign exchange
income is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Net foreign exchange gain (loss)
|
|
|
|
|
|
|
|
|
|
Net gain (loss) from currency exchange differences
|
|
|
(212,618
|
)
|
|
|
113,115
|
|
|
Hedging derivatives
|
|
|
252,275
|
|
|
|
22,933
|
|
|
Income from assets indexed to foreign currency
|
|
|
12,151
|
|
|
|
(9,190
|
)
|
|
Income from liabilities indexed to foreign currency
|
|
|
-
|
|
|
|
98
|
|
|
Total
|
|
|
51,908
|
|
|
|
126,956
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
114
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 31
PROVISIONS
FOR LOAN LOSSES
|
|
a)
|
The movement in provisions for loan losses for the periods ended December 31, 2018 and 2017 is as follows:
|
|
|
|
|
|
|
Loans
and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
Contingent
loans
|
|
|
Additional
|
|
|
|
|
|
|
|
Individual
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Individual
|
|
|
Group
|
|
|
Provisions
|
|
|
Total
|
|
|
As of December 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
MCh$
|
|
|
Charged-off of loans
|
|
|
-
|
|
|
|
(20,203
|
)
|
|
|
(16,118
|
)
|
|
|
(9,496
|
)
|
|
|
(79,517
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(125,334
|
)
|
|
Provisions established
|
|
|
(45
|
)
|
|
|
(68,302
|
)
|
|
|
(83,979
|
)
|
|
|
(22,683
|
)
|
|
|
(190,868
|
)
|
|
|
(8,026
|
)
|
|
|
(3,439
|
)
|
|
|
(20,000
|
)
|
|
|
(397,342
|
)
|
|
Total provisions and charge-offs
|
|
|
(45
|
)
|
|
|
(88,505
|
)
|
|
|
(100,097
|
)
|
|
|
(32,179
|
)
|
|
|
(270,385
|
)
|
|
|
(8,026
|
)
|
|
|
(3,439
|
)
|
|
|
(20,000
|
)
|
|
|
(522,676
|
)
|
|
Provisions released (*)
|
|
|
102
|
|
|
|
35,301
|
|
|
|
8,764
|
|
|
|
8,446
|
|
|
|
45,031
|
|
|
|
6,303
|
|
|
|
5,163
|
|
|
|
-
|
|
|
|
109,110
|
|
|
Recovery of loans previously charged-off
|
|
|
-
|
|
|
|
11,399
|
|
|
|
19,535
|
|
|
|
17,367
|
|
|
|
40,180
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
88,481
|
|
|
Net charge to income
|
|
|
57
|
|
|
|
(41,805
|
)
|
|
|
(71,798
|
)
|
|
|
(6,366
|
)
|
|
|
(185,174
|
)
|
|
|
(1,724
|
)
|
|
|
1,794
|
|
|
|
(20,000
|
)
|
|
|
(325,085
|
)
|
|
|
|
|
|
|
Loans
and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
Contingent
loans
|
|
|
|
|
|
|
|
|
|
|
Individual
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Individual
|
|
|
Group
|
|
|
|
|
|
Total
|
|
|
As of December 31, 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
MCh$
|
|
|
Charged-off of loans
|
|
|
-
|
|
|
|
(15,699
|
)
|
|
|
(49,274
|
)
|
|
|
(17,426
|
)
|
|
|
(94,443
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(176,842
|
)
|
|
Provisions established
|
|
|
(307
|
)
|
|
|
(60,023
|
)
|
|
|
(99,407
|
)
|
|
|
(22,163
|
)
|
|
|
(157,595
|
)
|
|
|
(8,079
|
)
|
|
|
(4,224
|
)
|
|
|
-
|
|
|
|
(351,798
|
)
|
|
Total provisions and charge-offs
|
|
|
(307
|
)
|
|
|
(75,722
|
)
|
|
|
(148,681
|
)
|
|
|
(39,589
|
)
|
|
|
(252,038
|
)
|
|
|
(8,079
|
)
|
|
|
(4,224
|
)
|
|
|
-
|
|
|
|
(528,640
|
)
|
|
Provisions released (*)
|
|
|
393
|
|
|
|
55,925
|
|
|
|
20,491
|
|
|
|
11,427
|
|
|
|
46,089
|
|
|
|
10,135
|
|
|
|
1,660
|
|
|
|
-
|
|
|
|
146,120
|
|
|
Recovery of loans previously charged-off
|
|
|
-
|
|
|
|
10,902
|
|
|
|
21,499
|
|
|
|
10,942
|
|
|
|
39,972
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
83,315
|
|
|
Net charge to income
|
|
|
86
|
|
|
|
(8,895
|
)
|
|
|
(106,691
|
)
|
|
|
(17,220
|
)
|
|
|
(165,977
|
)
|
|
|
2,056
|
|
|
|
(2,564
|
)
|
|
|
-
|
|
|
|
(299,205
|
)
|
|
|
b)
|
The detail of Charge-off of individually significant loans,
is as follows:
|
|
|
|
Loans and accounts receivable from customers
|
|
|
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
|
As of December 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Charge-off of loans
|
|
|
54,399
|
|
|
|
80,127
|
|
|
|
28,558
|
|
|
|
249,668
|
|
|
|
412,752
|
|
|
Provision applied
|
|
|
(34,196
|
)
|
|
|
(64,009
|
)
|
|
|
(19,062
|
)
|
|
|
(170,151
|
)
|
|
|
(287,418
|
)
|
|
Net charge offs of individually significant loans
|
|
|
20,203
|
|
|
|
16,118
|
|
|
|
9,496
|
|
|
|
79,517
|
|
|
|
125,334
|
|
|
|
|
Loans and accounts receivables from customers
|
|
|
|
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
|
|
|
|
|
loans
|
|
|
loans
|
|
|
loans
|
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
|
As of December 31, 2017
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Charge-off of loans
|
|
|
51,978
|
|
|
|
92,223
|
|
|
|
20,137
|
|
|
|
222,212
|
|
|
|
386,550
|
|
|
Provision applied
|
|
|
(36,279
|
)
|
|
|
(42,949
|
)
|
|
|
(2,711
|
)
|
|
|
(127,769
|
)
|
|
|
(209,708
|
)
|
|
Net charge offs of individually significant loans
|
|
|
15,699
|
|
|
|
49,274
|
|
|
|
17,426
|
|
|
|
94,443
|
|
|
|
176,842
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
115
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 32
PERSONNEL SALARIES AND EXPENSES
|
|
a)
|
Composition of personnel salaries and expenses:
|
For the periods ended December 31, 2018 and 2017, the composition
of personnel salaries and expenses is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Personnel compensation
|
|
|
259,354
|
|
|
|
250,962
|
|
|
Bonuses or gratuities
|
|
|
72,728
|
|
|
|
75,181
|
|
|
Stock-based benefits
|
|
|
(337
|
)
|
|
|
2,752
|
|
|
Seniority compensation:
|
|
|
21,869
|
|
|
|
26,120
|
|
|
Pension plans
|
|
|
1,069
|
|
|
|
2,039
|
|
|
Training expenses
|
|
|
3,782
|
|
|
|
2,867
|
|
|
Day care and kindergarten
|
|
|
2,778
|
|
|
|
2,505
|
|
|
Health and welfare funds
|
|
|
6,040
|
|
|
|
5,644
|
|
|
Other personnel expenses
|
|
|
30,281
|
|
|
|
28,897
|
|
|
Total
|
|
|
397,564
|
|
|
|
396,967
|
|
Benefits based on equity instruments (settled in cash)
The Bank provides certain executives of the Bank and its affiliates
with a benefit of payments based on shares, which are settled in cash in accordance with the requirements of IFRS 2. The Bank measures
the services received and the liability incurred, at fair value.
Until the settlement of the liability, the Bank determines the fair
value of the liability at the end of each reporting period, as well as on the settlement date, recognizing any change in fair value
in profit or loss for the year.
The balance corresponding to profits based on equity instruments,
as of December 31, 2018 and 2017 was $337 million and $2,752 million, respectively.
Consolidated Financial Statements December 2018 / Banco Santander Chile
116
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 33
ADMINISTRATIVE
EXPENSES
For the periods ended December 31, 2018 and 2017, the composition
of administrative expenses is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
General administrative expenses
|
|
|
145,241
|
|
|
|
139,418
|
|
|
Maintenance and repair of property, plant and equipment
|
|
|
20,962
|
|
|
|
21,359
|
|
|
Office lease
|
|
|
29,761
|
|
|
|
26,136
|
|
|
Equipment lease
|
|
|
55
|
|
|
|
96
|
|
|
Insurance premiums
|
|
|
3,439
|
|
|
|
3,354
|
|
|
Office supplies
|
|
|
5,070
|
|
|
|
6,862
|
|
|
IT and communication expenses
|
|
|
44,209
|
|
|
|
39,103
|
|
|
Lighting, heating, and other utilities
|
|
|
4,849
|
|
|
|
5,468
|
|
|
Security and valuables transport services
|
|
|
12,168
|
|
|
|
12,181
|
|
|
Representation and personnel travel expenses
|
|
|
3,444
|
|
|
|
4,262
|
|
|
Judicial and notarial expenses
|
|
|
1,148
|
|
|
|
974
|
|
|
Fees for technical reports and auditing
|
|
|
10,020
|
|
|
|
9,379
|
|
|
Other general administrative expenses
|
|
|
10,116
|
|
|
|
10,244
|
|
|
Outsourced services
|
|
|
65,358
|
|
|
|
57,400
|
|
|
Data processing
|
|
|
32,360
|
|
|
|
34,880
|
|
|
Archive service
|
|
|
3,401
|
|
|
|
3,324
|
|
|
Valuation service
|
|
|
3,167
|
|
|
|
2,419
|
|
|
Outsourced staff
|
|
|
9,936
|
|
|
|
6,878
|
|
|
Other
|
|
|
16,494
|
|
|
|
9,899
|
|
|
Board expenses
|
|
|
1,297
|
|
|
|
1,290
|
|
|
Marketing expenses
|
|
|
19,286
|
|
|
|
18,877
|
|
|
Taxes, payroll taxes, and contributions
|
|
|
13,907
|
|
|
|
13,118
|
|
|
Real estate taxes
|
|
|
1,730
|
|
|
|
1,443
|
|
|
Patents
|
|
|
1,896
|
|
|
|
1,646
|
|
|
Other taxes
|
|
|
7
|
|
|
|
24
|
|
|
Contributions to SBIF
|
|
|
10,274
|
|
|
|
10,005
|
|
|
Total
|
|
|
245,089
|
|
|
|
230,103
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
117
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 34
DEPRECIATION, AMORTIZATION AND IMPAIRMENT
|
|
a)
|
The values of depreciation and amortization during December
31, 2018 and 2017 are detailed below:
|
|
|
|
As December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant, and equipment
|
|
|
(54,987
|
)
|
|
|
(55,623
|
)
|
|
Amortizations of intangible assets
|
|
|
(24,293
|
)
|
|
|
(22,200
|
)
|
|
Total depreciation and amortization
|
|
|
(79,280
|
)
|
|
|
(77,823
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
|
|
|
|
|
|
|
Impairment of property, plant and equipment
|
|
|
(39
|
)
|
|
|
(354
|
)
|
|
Impairment of intangible assets
|
|
|
-
|
|
|
|
(5,290
|
)
|
|
Total Impairments
|
|
|
(39
|
)
|
|
|
(5,644
|
)
|
|
Total
|
|
|
(79,319
|
)
|
|
|
(83,467
|
)
|
As of December 31, 2018, the
impairment amount of fixed assets amounts to $39 million ($354 million as of December 31, 2017), mainly due to ATM incidents, And
the amount of impairment in intangible amounts to $0 due to the obsolescence of computer projects.
|
|
b)
|
The changes in book value due to depreciation and amortization for the nine-month period ended December 31,
2018 and 2017 are as follows:
|
|
|
|
Depreciation and amortization 2018
|
|
|
|
|
Property, plant,
|
|
|
Intangible
|
|
|
|
|
|
|
|
and equipment
|
|
|
assets
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
(290,932
|
)
|
|
|
(261,828
|
)
|
|
|
(552,760
|
)
|
|
Depreciation and amortization for the period
|
|
|
(54,987
|
)
|
|
|
(24,293
|
)
|
|
|
(79,280
|
)
|
|
Sales and disposals in the period
|
|
|
77
|
|
|
|
-
|
|
|
|
77
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Balance as of December 31, 2018
|
|
|
(345,842
|
)
|
|
|
(286,121
|
)
|
|
|
(631,963
|
)
|
|
|
|
Depreciation and amortization 2017
|
|
|
|
|
Property, plant,
|
|
|
Intangible
|
|
|
|
|
|
|
|
and equipment
|
|
|
assets
|
|
|
Total
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2017
|
|
|
(235,622
|
)
|
|
|
(239,628
|
)
|
|
|
(475,250
|
)
|
|
Depreciation and amortization for the period
|
|
|
(55,623
|
)
|
|
|
(22,200
|
)
|
|
|
(77,823
|
)
|
|
Sales and disposals in the period
|
|
|
313
|
|
|
|
-
|
|
|
|
313
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Balance as of December 31, 2017
|
|
|
(290,932
|
)
|
|
|
(261,828
|
)
|
|
|
(552,760
|
)
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
118
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 35
OTHER OPERATING INCOME AND EXPENSES
|
|
a)
|
Other operating income is as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
MCh$
|
|
|
2017
MCh$
|
|
|
Income from assets received in lieu of payment
|
|
|
|
|
|
|
|
|
|
Income from sale of assets received in lieu of payment
|
|
|
7,106
|
|
|
|
3,330
|
|
|
Recovery of charge-offs and income from assets received in lieu of payment
|
|
|
14,987
|
|
|
|
17,600
|
|
|
Other income from assets received in lieu of payment
|
|
|
1,410
|
|
|
|
7,547
|
|
|
Subtotal
|
|
|
23,503
|
|
|
|
28,477
|
|
|
Contingency Provision Liberation (1)
|
|
|
12,020
|
|
|
|
29,903
|
|
|
Subtotal
|
|
|
12,020
|
|
|
|
29,903
|
|
|
Other income
|
|
|
|
|
|
|
|
|
|
Leases
|
|
|
222
|
|
|
|
264
|
|
|
Income from sale of property, plant and equipment (2)
|
|
|
2,490
|
|
|
|
23,229
|
|
|
Recovery of provisions for contingencies
|
|
|
-
|
|
|
|
-
|
|
|
Compensation from insurance companies due to damages
|
|
|
144
|
|
|
|
1,237
|
|
|
Other
|
|
|
1,147
|
|
|
|
4,053
|
|
|
Subtotal
|
|
|
4,003
|
|
|
|
28,783
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
39,526
|
|
|
|
87,163
|
|
|
|
(1)
|
The Bank maintained provisions for contingencies in accordance
with IAS 37, which during 2018 was favorable for the Bank.
|
|
|
(2)
|
The result from the sale of fixed assets as of December 31, 2018 includes MCh $ 2,122 corresponding to the
legal assignment of rights by leasing contract entered into by Bansa Santander S.A., as disclosed in Note N ° 26.
|
|
|
b)
|
Other operating expenses are as follows:
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Allowances and expenses for assets received in lieu of payment
|
|
|
|
|
|
|
|
|
|
Charge-offs of assets received in lieu of payment
|
|
|
15,037
|
|
|
|
30,027
|
|
|
Provisions on assets received in lieu of payment
|
|
|
816
|
|
|
|
3,912
|
|
|
Expenses for maintenance of assets received in lieu of payment
|
|
|
1,721
|
|
|
|
1,679
|
|
|
Subtotal
|
|
|
17,574
|
|
|
|
35,618
|
|
|
Credit card expenses
|
|
|
3,151
|
|
|
|
3,070
|
|
|
Customer services
|
|
|
3,635
|
|
|
|
2,563
|
|
|
Other expenses
|
|
|
798
|
|
|
|
1,607
|
|
|
Operating charge-offs
|
|
|
9,964
|
|
|
|
23,475
|
|
|
Life insurance and general product insurance policies
|
|
|
-
|
|
|
|
-
|
|
|
Additional tax on expenses paid overseas
|
|
|
62
|
|
|
|
-
|
|
|
Gain (Loss) for sale of PP&E
|
|
|
21
|
|
|
|
-
|
|
|
Provisions for contingencies
|
|
|
898
|
|
|
|
912
|
|
|
Expense for the Retail Association
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
9,637
|
|
|
|
28,769
|
|
|
Subtotal
|
|
|
21,380
|
|
|
|
54,763
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
45,740
|
|
|
|
96,014
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
119
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°36
TRANSACTIONS WITH RELATED PARTIES
Associated and dependent entities
are the Bank's "related parties". However, this also includes its "key personnel" from the executive staff
(members of the Bank's Board of Directors and Managers of Banco Santander Chile and its affiliates, together with their close relatives),
as well as the entities over which the key personnel could exercise significant influence or control.
The Bank also includes those companies that are part of the Santander Group worldwide as related parties,
given that all of them have a common parent, i.e. Banco Santander S.A. (located in Spain).
Article 89 of the Ley de Sociedades
Anónimas (Public Companies Act), which is also applicable to banks, states that any transaction with a related party must be made
under equitable conditions similar to those that customarily prevail in the market.
Article 84 of the Ley General
de Bancos (General Banking Act) establishes limits for loans that can be granted to related parties and prohibits lending to the
Bank's directors, General Manager, or representatives.
Transactions between the Bank
and its related parties are specified below and have been divided into four categories:
Santander Group companies
This category includes all the
companies that are controlled by the Santander Group around the world, and hence, it also includes the companies over which the
Bank exercises any degree of control (Affiliates and special-purpose entities).
Associated companies
This category includes the entities
over which the Bank exercises a significant degree of influence, in accordance with section b) of Note 1, and which generally belong
to the group of entities known as "business support companies".
Key personnel
This category includes members
of the Bank's Board of Directors and managers of Banco Santander Chile and its affiliates, together with their close relatives.
Other
This category encompasses the
related parties that are not included in the groups identified above and which are, in general, entities over which the key personnel
could exercise significant influence or control.
The terms for transactions with
related parties are equivalent to those which prevail in transactions made under market conditions or to which the corresponding
considerations in kind have been attributed.
Consolidated Financial Statements December 2018 / Banco Santander Chile
120
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°36
TRANSACTIONS WITH RELATED PARTIES, continued
|
|
a)
|
Loans to related parties
|
Loans and receivables as well as contingent loans
are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
122,289
|
|
|
|
459
|
|
|
|
4,298
|
|
|
|
233
|
|
|
|
80,076
|
|
|
|
771
|
|
|
|
3,947
|
|
|
|
7,793
|
|
|
Mortgage loans
|
|
|
-
|
|
|
|
-
|
|
|
|
18,814
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,796
|
|
|
|
-
|
|
|
Consumer loans
|
|
|
-
|
|
|
|
-
|
|
|
|
5,335
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,310
|
|
|
|
-
|
|
|
Loans and account receivables:
|
|
|
122,289
|
|
|
|
459
|
|
|
|
28,447
|
|
|
|
233
|
|
|
|
80,076
|
|
|
|
771
|
|
|
|
27,053
|
|
|
|
7,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
(308
|
)
|
|
|
(9
|
)
|
|
|
(116
|
)
|
|
|
(5
|
)
|
|
|
(209
|
)
|
|
|
(9
|
)
|
|
|
(177
|
)
|
|
|
(18
|
)
|
|
Net loans
|
|
|
121,981
|
|
|
|
450
|
|
|
|
28,331
|
|
|
|
228
|
|
|
|
79,867
|
|
|
|
762
|
|
|
|
26,876
|
|
|
|
7,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees
|
|
|
442,854
|
|
|
|
-
|
|
|
|
22,893
|
|
|
|
7,171
|
|
|
|
361,452
|
|
|
|
-
|
|
|
|
23,868
|
|
|
|
7,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal guarantees
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Letters of credit
|
|
|
5,392
|
|
|
|
-
|
|
|
|
2,060
|
|
|
|
44
|
|
|
|
19,251
|
|
|
|
-
|
|
|
|
-
|
|
|
|
33
|
|
|
Performance guarantees
|
|
|
445,064
|
|
|
|
-
|
|
|
|
3,364
|
|
|
|
-
|
|
|
|
377,578
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Contingent loans
|
|
|
450,456
|
|
|
|
-
|
|
|
|
5,424
|
|
|
|
44
|
|
|
|
396,829
|
|
|
|
-
|
|
|
|
-
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for contingent loans
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(18
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net contingent loans
|
|
|
450,455
|
|
|
|
-
|
|
|
|
5,406
|
|
|
|
44
|
|
|
|
396,825
|
|
|
|
-
|
|
|
|
-
|
|
|
|
34
|
|
Loans regarding activity with related parties during
the periods ended December 31, 2018 and 2017 is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Opening balances as of January 1,
|
|
|
476,906
|
|
|
|
771
|
|
|
|
27,051
|
|
|
|
7,826
|
|
|
|
546,058
|
|
|
|
532
|
|
|
|
26,423
|
|
|
|
7,100
|
|
|
Loans granted
|
|
|
200,657
|
|
|
|
39
|
|
|
|
16,574
|
|
|
|
773
|
|
|
|
78,214
|
|
|
|
318
|
|
|
|
7,777
|
|
|
|
1,050
|
|
|
Loan payments
|
|
|
(104,818
|
)
|
|
|
(351
|
)
|
|
|
(9,754
|
)
|
|
|
(700
|
)
|
|
|
(147,366
|
)
|
|
|
(79
|
)
|
|
|
(7,149
|
)
|
|
|
(324
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
572,745
|
|
|
|
459
|
|
|
|
33,871
|
|
|
|
7,899
|
|
|
|
476,906
|
|
|
|
771
|
|
|
|
27,051
|
|
|
|
7,826
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
121
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 36
TRANSACTIONS WITH RELATED
PARTIES, continued
|
|
b)
|
Assets and liabilities with related parties
|
|
|
|
As of December, 31
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
189,803
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
74,949
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Trading investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Financial derivative contracts
|
|
|
748,632
|
|
|
|
105,358
|
|
|
|
-
|
|
|
|
9
|
|
|
|
545,028
|
|
|
|
86,011
|
|
|
|
-
|
|
|
|
14
|
|
|
Available for sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other assets
|
|
|
38,960
|
|
|
|
51,842
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,480
|
|
|
|
118,136
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and other demand liabilities
|
|
|
27,515
|
|
|
|
(21,577
|
)
|
|
|
2,493
|
|
|
|
(480
|
)
|
|
|
24,776
|
|
|
|
25,805
|
|
|
|
2,470
|
|
|
|
221
|
|
|
Obligations under repurchase agreements
|
|
|
6,501
|
|
|
|
-
|
|
|
|
329
|
|
|
|
68
|
|
|
|
50,945
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Time deposits and other time liabilities
|
|
|
2,585,337
|
|
|
|
-
|
|
|
|
3,189
|
|
|
|
(838
|
)
|
|
|
785,988
|
|
|
|
27,968
|
|
|
|
3,703
|
|
|
|
3,504
|
|
|
Financial derivative contracts
|
|
|
770,624
|
|
|
|
112,523
|
|
|
|
-
|
|
|
|
-
|
|
|
|
418,647
|
|
|
|
142,750
|
|
|
|
-
|
|
|
|
7,190
|
|
|
Bank obligation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Issued debts instruments
|
|
|
335,443
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
482,626
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other financial liabilities
|
|
|
6,807
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,919
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other liabilities
|
|
|
60,884
|
|
|
|
89,817
|
|
|
|
-
|
|
|
|
-
|
|
|
|
164,303
|
|
|
|
58,168
|
|
|
|
-
|
|
|
|
-
|
|
|
|
c)
|
Recognized income (expense) with related parties
|
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
Santander
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
Group
|
|
|
Associated
|
|
|
Key
|
|
|
|
|
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
companies
|
|
|
companies
|
|
|
personnel
|
|
|
Other
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expense) recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expenses from interest and inflation
|
|
|
(53.256
|
)
|
|
|
(156
|
)
|
|
|
1,252
|
|
|
|
508
|
|
|
|
(43,892
|
)
|
|
|
-
|
|
|
|
1,051
|
|
|
|
-
|
|
|
Fee and commission income and expenses
|
|
|
91,178
|
|
|
|
7,826
|
|
|
|
305
|
|
|
|
22
|
|
|
|
72,273
|
|
|
|
15,404
|
|
|
|
224
|
|
|
|
1
|
|
|
Net income (expense) from financial operations and foreign exchange transactions (*)
|
|
|
(566,677
|
)
|
|
|
65,727
|
|
|
|
27
|
|
|
|
(12
|
)
|
|
|
363,108
|
|
|
|
(48,453
|
)
|
|
|
(3
|
)
|
|
|
19
|
|
|
Other operating income and expenses
|
|
|
42
|
|
|
|
1,388
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,670
|
|
|
|
(1,454
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Key personnel compensation and expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,761
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(43,037
|
)
|
|
|
-
|
|
|
Administrative and other expenses
|
|
|
(43,035
|
)
|
|
|
(50,764
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(48,246
|
)
|
|
|
(47,220
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
(571,748
|
)
|
|
|
24,022
|
|
|
|
(10,177
|
)
|
|
|
518
|
|
|
|
364,913
|
|
|
|
(81,723
|
)
|
|
|
(41,765
|
)
|
|
|
20
|
|
|
|
(*)
|
Primarily relates to derivative contracts used to hedge
economically the exchange risk of assets and liabilities that hedge positions of the Bank and its subsidiaries.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
122
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 36
TRANSACTIONS WITH RELATED PARTIES, continued
|
|
d)
|
Payment to Board members and key management personnel
|
The compensation received by key management
personnel, including Board members and all the executives holding Manager positions, is shown in the "Personnel salaries
and expenses" and/or "Administrative expenses" of the Consolidated Statements of Income, and detailed as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Personnel compensation
|
|
|
16,924
|
|
|
|
16,863
|
|
|
Board member`s salaries and expenses
|
|
|
1,230
|
|
|
|
1,199
|
|
|
Bonuses or gratuity
|
|
|
16,243
|
|
|
|
16,057
|
|
|
Compensation in stock
|
|
|
(337
|
)
|
|
|
2,752
|
|
|
Training expenses
|
|
|
210
|
|
|
|
68
|
|
|
Seniority compensation
|
|
|
4,202
|
|
|
|
3,842
|
|
|
Health funds
|
|
|
284
|
|
|
|
273
|
|
|
Other personnel expenses
|
|
|
858
|
|
|
|
773
|
|
|
Pension Plans (*)
|
|
|
1,069
|
|
|
|
2,039
|
|
|
Total
|
|
|
40,683
|
|
|
|
43,866
|
|
(*) Part of the executives who qualified for this
benefit ceased to belong to the Group for various reasons without meeting the requirements to obtain the benefit, for which the
amount of the obligation decreased, generating an income for the reversal of provisions.
|
|
e)
|
Composition of key personnel
|
As of December 31, 2018, and 2017, the composition of the Bank's key personnel is as follows:
|
|
|
N° of executives
|
|
|
|
|
As of December 31,
|
|
|
Position
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Director
|
|
|
11
|
|
|
|
11
|
|
|
Division manager
|
|
|
12
|
|
|
|
13
|
|
|
Manager
|
|
|
108
|
|
|
|
109
|
|
|
Total key personnel
|
|
|
131
|
|
|
|
133
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
123
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 37
PENSION PLANS
The Bank has an additional benefit available
to its principal executives, consisting of a pension plan. The purpose of the pension plan is to endow the executives with funds
for a better supplementary pension upon their retirement.
For this purpose, the Bank will match the voluntary
contributions made by the beneficiaries for their future pension with an equivalent contribution. The executives will be entitled
to receive this benefit only when they fulfill the following conditions:
|
|
a.
|
Aimed at the Bank's management
|
|
|
b.
|
The general requisite to apply for this benefit is that
the employee must be carrying out his/her duties when turning 60 years old.
|
|
|
c.
|
The Bank will create a pension fund, with life insurance, for each beneficiary in the plan, Periodic contributions into this
fund are made by the manager and matched by the Bank.
|
|
|
d.
|
The Bank will be responsible for granting the benefits directly.
|
If the working relationship between the manager and
the respective company ends, before s/he fulfills the abovementioned requirements, s/he will have no rights under this benefit
plan.
In the event of the executive's death or total or partial disability, s/he will be entitled to receive this
benefit.
The Bank will make contributions to this benefit plan
on the basis of mixed collective insurance policies whose beneficiary is the Bank. The life insurance company with whom such policies
are executed is not an entity linked or related to the Bank or any other Santander Group company.
Plan Assets owned by the Bank at the end of 2018 totaled
Ch$6,804 million (Ch$7,919 million in 2017)
The amount of the defined benefit plans has been quantified by the Bank, based on the following criteria:
Calculation method
Use of the projected unit credit method which
considers each working year as generating an additional amount of rights over benefits and values each unit separately. It is calculated
based primarily on fund contribution, as well as other factors such as the legal annual pension limit, seniority, age and yearly
income for each unit valued individually.
Actuarial hypothesis assumptions:
Actuarial assumption with respect to demographic and
financial variables are non-biased and mutually compatible with each other, The most significant actuarial hypotheses considered
in the calculation were.
Assets related to the pension fund contributed by
the Bank into the Seguros Euroamérica insurance company with respect to defined benefit plans are presented as net of associated
commitments.
|
|
|
Plans
|
|
Plans
|
|
|
|
post–employment
|
|
post–employment
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Mortality chart
|
|
RV-2014
|
|
RV-2014
|
|
Termination of contract rates
|
|
5,00%
|
|
5,0%
|
|
Impairment chart
|
|
PDT 1985
|
|
PDT 1985
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
124
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°37
PENSION PLANS, continued
Activity for post-employment benefits is as follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Plan assets
|
|
|
6,804
|
|
|
|
7,919
|
|
|
Commitments for defined-benefit plans
|
|
|
|
|
|
|
|
|
|
For active personnel
|
|
|
(5,958
|
)
|
|
|
(6,998
|
)
|
|
Incurred by inactive personnel
|
|
|
-
|
|
|
|
-
|
|
|
Minus:
|
|
|
|
|
|
|
|
|
|
Unrealized actuarial (gain) losses
|
|
|
-
|
|
|
|
-
|
|
|
Balances at year end
|
|
|
846
|
|
|
|
921
|
|
Year's cash flow for post-employment benefits is as
follows:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
a) Fair value of plan assets
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
7,919
|
|
|
|
6,612
|
|
|
Expected yield of insurance contracts
|
|
|
353
|
|
|
|
307
|
|
|
Employer contributions
|
|
|
836
|
|
|
|
1,931
|
|
|
Actuarial (gain) losses
|
|
|
-
|
|
|
|
-
|
|
|
Premiums paid
|
|
|
-
|
|
|
|
-
|
|
|
Benefits paid
|
|
|
(2,304
|
)
|
|
|
(931
|
)
|
|
Fair value of plan assets at year end
|
|
|
6,804
|
|
|
|
7,919
|
|
|
b) Present value of obligations
|
|
|
|
|
|
|
|
|
|
Present value of obligation opening balance
|
|
|
(6,998
|
)
|
|
|
(4,975
|
)
|
|
Net incorporation of Group companies
|
|
|
-
|
|
|
|
-
|
|
|
Service cost
|
|
|
(1,069
|
)
|
|
|
(2,039
|
)
|
|
Interest cost
|
|
|
-
|
|
|
|
-
|
|
|
Curtailment/settlement effect
|
|
|
-
|
|
|
|
-
|
|
|
Benefits paid
|
|
|
-
|
|
|
|
-
|
|
|
Past service cost
|
|
|
-
|
|
|
|
-
|
|
|
Actuarial (gain) losses
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
2,109
|
|
|
|
16
|
|
|
Present value of obligations at year end
|
|
|
(5,958
|
)
|
|
|
(6,998
|
)
|
|
Net balance at year end
|
|
|
846
|
|
|
|
921
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
125
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE N°37
PENSION PLANS, continued
Plan expected profit:
|
|
|
As of December 31,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Type of expected yield from the plan
’
s assets
|
|
UF + 2.50% annual
|
|
UF + 2.50% annual
|
|
Type of yield expected from the reimbursement rights
|
|
UF + 2.50% annual
|
|
UF + 2.50% annual
|
Plan associated expenses:
|
|
|
For the years ended
|
|
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Current period service expenses
|
|
|
1,069
|
|
|
|
2,039
|
|
|
Interest cost
|
|
|
-
|
|
|
|
-
|
|
|
Expected yield from plan
’
s asset
|
|
|
-
|
|
|
|
(307
|
)
|
|
Expected yield of insurance contracts linked to the Plan:
|
|
|
(353
|
)
|
|
|
-
|
|
|
Extraordinary allocations
|
|
|
-
|
|
|
|
-
|
|
|
Actuarial (gain)/losses recorded in the period
|
|
|
-
|
|
|
|
-
|
|
|
Past service cost
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
716
|
|
|
|
1,732
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
126
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction on the main market (or the most advantageous)
at the measurement date in the current market conditions (in other words, an exit price) regardless of whether that price is directly
observable or estimated by using a different valuation technique, The measurement of fair value assumes the sale transaction of
an asset or the transference of the liability happens within the main asset or liability market, or the most advantageous market
for the asset or liability.
For financial instruments with
no available market prices, fair values have been estimated by using recent transactions in analogous instruments, and in the absence
thereof, the present values or other valuation techniques based on mathematical valuation models sufficiently accepted by the international
financial community. In the use of these models, consideration is given to the specific particularities of the asset or liability
to be valued, and especially to the different kinds of risks associated with the asset or liability,
These techniques are significantly
influenced by the assumptions used, including the discount rate, the estimates of future cash flows and prepayment expectations,
Hence, the fair value estimated for an asset or liability may not coincide exactly with the price at which that asset or liability
could be delivered or settled on the date of its valuation, and may not be justified in comparison with independent markets.
Determination of fair value of financial instruments
Below is a comparison between
the value at which the Bank's financial assets and liabilities are recorded and their fair value as of December 31, 2018 and December
31, 2017:
|
|
|
As of December 31, 2018
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
|
Fair value
|
|
|
Book value
|
|
|
Fair value
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading investments
|
|
|
77,041
|
|
|
|
77,041
|
|
|
|
485,736
|
|
|
|
485,736
|
|
|
Financial derivative contracts
|
|
|
3,100,635
|
|
|
|
3,100,635
|
|
|
|
2,238,647
|
|
|
|
2,238,647
|
|
|
Loans and accounts receivable from customers and interbank loans, (net)
|
|
|
29,485,435
|
|
|
|
30,573,611
|
|
|
|
26,910,141
|
|
|
|
28,518,929
|
|
|
Investments available for sale
|
|
|
2,394,323
|
|
|
|
2,394,323
|
|
|
|
2,574,546
|
|
|
|
2,574,546
|
|
|
Guarantee deposits (margin accounts)
|
|
|
170,232
|
|
|
|
170,232
|
|
|
|
323,767
|
|
|
|
323,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and interbank borrowings
|
|
|
23,597,863
|
|
|
|
23,770,106
|
|
|
|
21,380,468
|
|
|
|
20,887,959
|
|
|
Financial derivative contracts
|
|
|
2,517,728
|
|
|
|
2,517,728
|
|
|
|
2,139,488
|
|
|
|
2,139,488
|
|
|
Issued debt instruments and other financial liabilities
|
|
|
8,330,633
|
|
|
|
8,605,135
|
|
|
|
7,335,683
|
|
|
|
7,487,591
|
|
|
Guarantees received (margin accounts)
|
|
|
371,512
|
|
|
|
371,512
|
|
|
|
408,313
|
|
|
|
408,313
|
|
Fair value is approximated to
book value in the following accounts, due to their short-term nature in the following cases: cash and bank deposits, operations
with liquidation in progress and buyback contracts as well as security loans.
In addition, the fair value estimates
presented above do not attempt to estimate the value of the Bank's profits generated by its business activity, nor its future activities,
and accordingly, they do not represent the Bank's value as a going concern.
Below is a detail of the methods used to estimate
the financial instruments' fair value.
Consolidated Financial Statements December 2018 / Banco Santander Chile
127
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES, continued
|
|
a)
|
Financial instruments for trading investments and available
for sale investment.
|
The estimated fair value of these financial instruments was established using market values or estimates from
an available dealer, or quoted market prices of similar financial instruments, Investments with maturities of less than 1 year
are evaluated at recorded value since they are considered as having a fair value not significantly different from their recorded
value, due to their short maturity term. To estimate the fair value of debt investments or representative values in these lines
of businesses, we take into consideration additional variables and elements, as long as they apply, including the estimate of prepayment
rates and credit risk of issuers.
|
|
b)
|
Loans and accounts receivable from customers and interbank
loans
|
Fair
value of commercial, mortgage and consumer loans and credit cards are measured through a discounted cash flow (DCF) analysis.
To do so, we use current market interest rates considering product, term, amount and similar loan quality, Fair value of loans
with 90 days or more of delinquency are measured by means of the market value of the associated guarantee, minus the rate and
term of expected payment. For variable rate loans whose interest rates change frequently (monthly or quarterly) and that are not
subjected to any significant credit risk change, the estimated fair value is based on their book value.
Disclosed fair value of deposits
that do not bear interest and saving accounts is the amount payable at the reporting date and, therefore, equals the recorded amount.
Fair value of time deposits is calculated through a discounted cash flow calculation that applies current interest rates from a
monthly calendar of scheduled maturities in the market.
|
|
d)
|
Short and long term issued debt instruments
|
The fair value of these financial
instruments is calculated by using a discounted cash flow analysis based on the current incremental lending rates for similar types
of loans having similar maturities.
|
|
e)
|
Financial derivative contracts
|
The estimated fair value of financial
derivative contracts is calculated using the prices quoted on the market for financial instruments having similar characteristics.
The fair value of interest rate swaps represents the estimated amount that the Bank expects to receive to
cancel the contracts or agreements, considering the term structures of the interest curve, volatility of the underlying asset and
credit risk of counterparties.
If there are no quoted prices
from the market (either direct or indirect) for any derivative instrument, the respective fair value estimates have been calculated
by using models and valuation techniques such as Black-Scholes, Hull, and Monte Carlo simulations, taking into consideration the
relevant inputs/outputs such as volatility of options, observable correlations between underlying assets, counterparty credit risk,
implicit price volatility, the velocity with which the volatility reverts to its average value, and the straight-line relationship
(correlation) between the value of a market variable and its volatility, among others.
Measurement of fair value and hierarchy
IFRS 13 - Fair Value Measurement, provides a hierarchy of reasonable values which separates the inputs and/or
valuation technique assumptions used to measure the fair value of financial instruments, the hierarchy reflects the significance
of the inputs used in making the measurement, The three levels of the hierarchy of fair values are the following:
|
|
●
|
Level 1: the inputs are quoted prices (unadjusted) on active
markets for identical assets and liabilities that the Bank can access on the measurement date.
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
128
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES, continued
|
|
●
|
Level 2: inputs other than the quoted prices included within
Level 1 that are observable for the asset or liability, either directly or indirectly.
|
|
|
●
|
Level 3: inputs are unobservable inputs for the asset or
liability.
|
The hierarchy level within which
the fair value measurement is categorized in its entirety is determined based on the lowest level of input that is significant
to the fair value measurement in its entirety.
The best evidence of a financial instrument's fair
value at the initial time is the transaction price (Level 1).
In cases where quoted market
prices cannot be observed, Management makes its best estimate of the price that the market would set using its own internal models
which in most cases use data based on observable market parameters as a significant input (Level 2) and, in very specific cases,
significant inputs not observable in market data (Level 3), Various techniques are employed to make these estimates, including
the extrapolation of observable market data.
Financial instruments at fair value and determined
by quotations published in active markets (Level 1) include:
|
|
-
|
Chilean Government and Department of Treasury bonds
|
Instruments which cannot be 100% observable in the
market are valued according to other inputs observable in the market (Level 2).
The following financial instruments are classified
under Level 2:
|
|
Type of
|
|
Model
|
|
|
|
|
financial instrument
|
|
used in valuation
|
|
Description
|
|
|
|
|
|
|
|
|
●
|
Mortgage and private bonds
|
|
Present Value of Cash Flows Model
|
|
Internal Rates of Return (“IRRs”) are provided by Risk America, according to the following criterion:
If, at the valuation day, there are one or more valid transactions at the Santiago Stock Exchange for a given mnemonic, the reported rate is the weighted average amount of the observed rates.
In the case there are no valid transactions for a given mnemonic on the valuation day, the reported rate is the IRR base from a reference structure, plus a spread model based on historical spread for the same item or similar ones.
|
|
|
|
|
|
|
|
|
●
|
Time deposits
|
|
Present Value of Cash Flows Model
|
|
IRRs are provided by Risk America, according
to the following criterion:
If, at the valuation day, there are one or more valid transactions at the Santiago Stock Exchange for a given mnemonic, the reported rate is the weighted average amount of the observed rates.
In the case there are no valid transactions for a given mnemonic on the valuation day, the reported rate is the IRR base from a reference structure, plus a spread model based on issuer curves.
|
|
|
|
|
|
|
|
|
●
|
Constant Maturity Swaps (CMS), FX and Inflation Forward (Fwd.), Cross Currency Swaps (CCS), Interest Rate
Swap (IRS)
|
|
Present Value of Cash Flows Model
|
|
IRRs are provided by ICAP, GFI, Tradition, and Bloomberg according to this criterion:
With published market prices, a valuation curve is created by the bootstrapping method and is then used to value different derivative instruments.
|
|
|
|
|
|
|
|
|
●
|
FX Options
|
|
Black-Scholes
|
|
Formula adjusted by the volatility smile (implicit volatility), Prices (volatility) are provided by BGC Partners, according to this criterion:
With published market prices, a volatility surface is created by interpolation and then these volatilities are used to value options.
|
In limited occasions significant inputs not observable in market
data are used (Level 3). To carry out this estimate, several techniques are used, including extrapolation of observable market
data or a mix of observable data.
Consolidated Financial Statements December 2018 / Banco Santander Chile
129
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES,
continued
The following financial instruments are classified
under Level 3:
|
|
Type of
|
|
Model
|
|
|
|
|
financial instrument
|
|
used in valuation
|
|
Description
|
|
|
|
|
|
|
|
|
●
|
Caps/ Floors/ Swaptions
|
|
Black Normal Model for Cap/Floors and Swaptions
|
|
There is no observable input of implicit volatility.
|
|
|
|
|
|
|
|
|
|
|
|
Black – Scholes
|
|
There is no observable input of implicit volatility.
|
|
|
|
|
|
|
|
|
|
|
|
Hull-White
|
|
Hybrid HW model for rates and Brownian motion for FX, there is no observable input of implicit volatility.
|
|
|
|
|
|
|
|
|
|
|
|
Implicit Forward Rate Agreement (FRA)
|
|
Start Fwd. unsupported by MUREX (platform) due to the UF forward estimate.
|
|
|
|
|
|
|
|
|
●
|
Cross currency swap, Interest rate swap, Call money swap in Active Bank Rate
|
|
Present Value of Cash Flows Model
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
Present Value of Cash Flows Model
|
|
Valued by using similar instrument prices plus a charge-off rate by liquidity.
|
The Bank does not
believe that any change in unobservable inputs with respect to level 3 instruments would result in a significantly different
fair value measurement.
The following table presents the assets and liabilities that
are measured at fair value on a recurring basis, as of December 31, 2018 and 2017.
|
|
|
Fair value measurement
|
|
|
|
|
2018
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
As of December 31,
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading investments
|
|
|
77,041
|
|
|
|
71,158
|
|
|
|
5,883
|
|
|
|
-
|
|
|
Available for sale investments
|
|
|
2,394,323
|
|
|
|
2,368,768
|
|
|
|
24,920
|
|
|
|
635
|
|
|
Derivatives
|
|
|
3,100,635
|
|
|
|
-
|
|
|
|
3,089,077
|
|
|
|
11,558
|
|
|
Guarantee deposits (margin accounts)
|
|
|
170,232
|
|
|
|
-
|
|
|
|
170,232
|
|
|
|
-
|
|
|
Total
|
|
|
5,742,321
|
|
|
|
2,439,926
|
|
|
|
3,290,112
|
|
|
|
12,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
2,517,728
|
|
|
|
-
|
|
|
|
2,516,933
|
|
|
|
795
|
|
|
Guarantees received (margin accounts)
|
|
|
371,512
|
|
|
|
-
|
|
|
|
371,512
|
|
|
|
-
|
|
|
Total
|
|
|
2,889,240
|
|
|
|
-
|
|
|
|
2,888,445
|
|
|
|
795
|
|
|
|
|
Fair value measurement
|
|
|
|
|
2017
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
As of December 31,
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading investments
|
|
|
485,736
|
|
|
|
481,642
|
|
|
|
4,094
|
|
|
|
-
|
|
|
Available for sale investments
|
|
|
2,574,546
|
|
|
|
2,549,226
|
|
|
|
24,674
|
|
|
|
646
|
|
|
Derivatives
|
|
|
2,238,647
|
|
|
|
-
|
|
|
|
2,216,306
|
|
|
|
22,341
|
|
|
Guarantee deposits (margin accounts)
|
|
|
323,767
|
|
|
|
323,767
|
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
5,622,696
|
|
|
|
3,354,635
|
|
|
|
2,245,074
|
|
|
|
22,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
2,139,488
|
|
|
|
-
|
|
|
|
2,139,481
|
|
|
|
7
|
|
|
Guarantees received (margin accounts)
|
|
|
408,313
|
|
|
|
408,313
|
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
2,547,801
|
|
|
|
408,313
|
|
|
|
2,139,481
|
|
|
|
7
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
130
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES, continued
The following table presents the assets and liabilities that
are not measured at fair value in the consolidated statement of financial position, as of December 31, 2018 and 2017:
|
|
|
Fair value measurement
|
|
|
|
|
2018
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
As of December 31,
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables from customers and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
30,573,611
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,573,611
|
|
|
Total
|
|
|
30,573,611
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,573,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and Interbank borrowing
|
|
|
23,770,106
|
|
|
|
-
|
|
|
|
23,770,106
|
|
|
|
-
|
|
|
Issued debt instruments and other financial liabilities
|
|
|
8,605,135
|
|
|
|
-
|
|
|
|
8,605,135
|
|
|
|
-
|
|
|
Total
|
|
|
32,375,241
|
|
|
|
-
|
|
|
|
32,375,241
|
|
|
|
-
|
|
|
|
|
Fair value measurement
|
|
|
|
|
2017
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
As of December 31,
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables from customers and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
28,518,929
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28,518,929
|
|
|
Total
|
|
|
28,518,929
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28,518,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and Interbank borrowing
|
|
|
20,887,959
|
|
|
|
-
|
|
|
|
20,887,959
|
|
|
|
-
|
|
|
Issued debt instruments and other financial liabilities
|
|
|
7,487,591
|
|
|
|
-
|
|
|
|
7,487,591
|
|
|
|
-
|
|
|
Total
|
|
|
28,375,550
|
|
|
|
-
|
|
|
|
28,375,550
|
|
|
|
-
|
|
There was no transfer between level 1 and 2 for the period ended
December 31, 2018 and 2017.
Consolidated Financial Statements December 2018 / Banco Santander Chile
131
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES,
continued
The following table presents the Bank's activity for
assets and liabilities measured at fair value on a recurrent basis using unobserved significant entries (Level 3) as of December
31, 2018 and 2017:
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
As of January 1, 2018
|
|
|
22,987
|
|
|
|
7
|
|
|
Total realized and unrealized profits (losses)
|
|
|
(10,769
|
)
|
|
|
(802
|
)
|
|
Included in statement of income
|
|
|
25
|
|
|
|
|
|
|
Included in other comprehensive income
|
|
|
|
|
|
|
|
|
|
Purchases, issuances, and loans (net)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
12,193
|
|
|
|
795
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profits or losses included in comprehensive income at December 31, 2018 that are attributable to change in unrealized profit (losses) related to assets or liabilities as of December 31, 2017
|
|
|
(10,794
|
)
|
|
|
(802
|
)
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
As of January 1, 2017
|
|
|
40,034
|
|
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
Total realized and unrealized profits (losses)
|
|
|
|
|
|
|
|
|
|
Included in statement of income
|
|
|
(17,035
|
)
|
|
|
(36
|
)
|
|
Included in other comprehensive income
|
|
|
(12
|
)
|
|
|
-
|
|
|
Purchases, issuances, and loans (net)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|
|
22,987
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Total profits or losses included in comprehensive income at December 31, 2018 that are attributable to change in unrealized profit (losses) related to assets or liabilities as of December 31, 2017
|
|
|
(17,047
|
)
|
|
|
(36
|
)
|
The realized and unrealized profits
(losses) included in comprehensive income for 2018 and 2017, in the assets and liabilities measured at fair value on a recurrent
basis through unobservable market data (Level 3) are recorded in the Statement of Comprehensive Income in the associate line item.
The potential effect as of December
31, 2018 and 2017 on the valuation of assets and liabilities valued at fair value on a recurrent basis through unobservable significant
entries (level 3), generated by changes in the principal assumptions if other reasonably possible assumptions that are less or
more favorable were used, is not considered by the Bank to be significant.
Consolidated Financial Statements December 2018 / Banco Santander Chile
132
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES,
continued
The following tables show the financial instruments
subject to compensation in accordance with IAS 32, for 2018 and 2017:
|
|
|
As of December 31, 2018
|
|
|
|
|
Linked financial instruments, compensated in balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remains of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrelated and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/ or
|
|
|
Amount in
|
|
|
|
|
|
|
|
|
|
|
Net amount
|
|
|
unencumbered
|
|
|
Statements
|
|
|
|
|
Gross
|
|
|
Compensated in
|
|
|
presented in
|
|
|
financial
|
|
|
of Financial
|
|
|
Financial instruments
|
|
amounts
|
|
|
balance
|
|
|
balance
|
|
|
instruments
|
|
|
Position
|
|
|
Assets
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
Financial derivative contracts
|
|
|
1,947,726
|
|
|
|
-
|
|
|
|
1,947,726
|
|
|
|
1,152,909
|
|
|
|
3,100,635
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Loans and accounts receivable from customers, and Interbank loans, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,485,435
|
|
|
|
29,485,435
|
|
|
Total
|
|
|
1,947,726
|
|
|
|
-
|
|
|
|
1,947,726
|
|
|
|
30,683,344
|
|
|
|
32,586,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial derivative contracts
|
|
|
1,735,555
|
|
|
|
-
|
|
|
|
1,735,555
|
|
|
|
782,173
|
|
|
|
2,517,728
|
|
|
Investments under resale agreements
|
|
|
48,545
|
|
|
|
-
|
|
|
|
48,545
|
|
|
|
-
|
|
|
|
48,545
|
|
|
Deposits and interbank borrowings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,597,862
|
|
|
|
23,597,862
|
|
|
Total
|
|
|
1,784,100
|
|
|
|
-
|
|
|
|
1,784,100
|
|
|
|
24,380,035
|
|
|
|
26,164,135
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
Linked financial instruments, compensated in balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remains of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrelated and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/ or
|
|
|
Amount in
|
|
|
|
|
|
|
|
|
|
|
Net amount
|
|
|
unencumbered
|
|
|
Statements
|
|
|
|
|
Gross
|
|
|
Compensated in
|
|
|
presented in
|
|
|
financial
|
|
|
of Financial
|
|
|
Financial instruments
|
|
amounts
|
|
|
balance
|
|
|
balance
|
|
|
instruments
|
|
|
Position
|
|
|
Assets
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
Financial derivative contracts
|
|
|
2,029,657
|
|
|
|
-
|
|
|
|
2,029,657
|
|
|
|
208,990
|
|
|
|
2,238,647
|
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Loans and accounts receivable from customers, and Interbank loans, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
26,910,141
|
|
|
|
26,910,141
|
|
|
Total
|
|
|
2,029,657
|
|
|
|
-
|
|
|
|
2,029,657
|
|
|
|
27,119,131
|
|
|
|
29,148,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial derivative contracts
|
|
|
1,927,654
|
|
|
|
-
|
|
|
|
1,927,654
|
|
|
|
211,834
|
|
|
|
2,139,488
|
|
|
Investments under resale agreements
|
|
|
268,061
|
|
|
|
-
|
|
|
|
268,061
|
|
|
|
-
|
|
|
|
268,061
|
|
|
Deposits and interbank borrowings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,380,467
|
|
|
|
21,380,467
|
|
|
Total
|
|
|
2,195,715
|
|
|
|
-
|
|
|
|
2,195,715
|
|
|
|
21,592,301
|
|
|
|
23,788,016
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
133
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 38
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES,
continued
In order to reduce the exposure of credit in its financial
derivative operations, the Bank has entered into bilateral collateral agreements with its counterparts, in which it establishes
the terms and conditions under which they operate, In general terms, the collateral (received / delivered) operates when the net
of the fair value of the financial instruments held exceeds the thresholds defined in the respective contracts.
Below are the financial derivatives contracts, according to their collateral agreement:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Asset
|
|
|
Liabilities
|
|
|
Asset
|
|
|
Liabilities
|
|
|
Financial derivatives contracts
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives contracts with threshold collateral agreement equal to zero
|
|
|
2,639,835
|
|
|
|
2,133,149
|
|
|
|
1,898,220
|
|
|
|
1,773,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives contracts with non-zero threshold collateral agreement
|
|
|
344,520
|
|
|
|
262,683
|
|
|
|
221,030
|
|
|
|
316,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives contracts without collateral agreement
|
|
|
116,280
|
|
|
|
121,896
|
|
|
|
119,397
|
|
|
|
49,177
|
|
|
Total Financial derivatives contracts
|
|
|
3,100,635
|
|
|
|
2,517,728
|
|
|
|
2,238,647
|
|
|
|
2,139,488
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
134
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT
Introduction and general
description
The Bank, due to its activities
with financial instruments is exposed to several types of risk. The main risks related to financial instruments that apply to the
Bank are as follow:
Market
risk:
rises 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 fluctuations in market interest rates.
|
|
|
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 factor 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 that one of the parties to a financial instrument fails to meet its contractual obligations for reason of insolvency or inability
of the individuals or legal entitles in question to continue as a going concern, causing a financial loss to the other party.
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
with onerous terms or risk damage to its image and reputation.
Operating risk:
this is
a risk arising from human errors, system error, fraud or external events which may damage the Bank's reputation, may have legal
or regulatory implication, or cause financial losses.
This note includes information on the Bank's exposure to these risks and on its objectives, policies, and
processes involved in their measurement and management.
Risk management structure
The Board of Directors is responsible
for the establishment and monitoring of the Bank's risk management structure and, to this end, has a corporate governance system
in line with international recommendations and trends, adapted to the Chilean regulatory reality and adapted to best practices,
advanced markets in which it operates. To better exercise this function, the Board of Directors has established the Comprehensive
Risk Committee ("CIR"), whose main mission is to assist in the development of its functions related to the Bank's control
and risk management, Complementing the CIR in risk management, the Board also has 3 key committees: Assets and Liabilities Committee
(CAPA), Markets Committee ("CDM") and the Directors and Audit Committee ("CDA"), Each of the committees is
composed of directors and executive members of the Bank's management.
The CIR is responsible for developing
Bank risk management policies in accordance with the guidelines of the Board of Directors, the Global Risk Department of Santander
Spain and the regulatory requirements issued by the Chilean Superintendency of Banks and Financial Institutions ("SBIF").
These policies have been created mainly to identify and analyze the risk faced by the Bank, establish risk limits and appropriate
controls, and monitor risks and compliance with limits. The Bank's risk management policies and systems are regularly reviewed
to reflect changes in market conditions, and the products or services offered, The Bank, through the training and management of
standards and procedures, aims to develop a disciplined and constructive control environment, in which all its employees understand
their duties and obligations.
To fulfill its functions, the CIR works directly with
the Bank's risk and control departments, whose joint objectives include:
- evaluate those risks that,
due to their size, could compromise the solvency of the Bank, or that present potentially significant operational or reputation
risks;
- ensure that the Bank is provided
with the means, systems, structures and resources in accordance with the best practices that allow for the implementation of the
strategy in risk management;
Consolidated Financial Statements December 2018 / Banco Santander Chile
135
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
- ensure the integration, control and management of
all Bank risks;
- execute the application throughout the Bank and
its businesses of homogeneous risk principles, policies and metrics;
- develop and
implement a risk management model in the Bank, so that the risk exposure is properly integrated in the different
decision-making processes;
- identify risk
concentrations and mitigation alternatives, monitor the macroeconomic and competitive environment, quantify sensitivities and
the foreseeable impact of different scenarios on the positioning of risks; Y
- manage the structural liquidity risks, interest
rates and exchange rates, as well as the Bank's own resources base.
To comply with the aforementioned objectives, the Bank (Administration and ALCO) carries out several activities
related to risk management, which include: calculating the risk exposures of the different portfolios and / or investments, considering
mitigating factors (guarantees, netting, collaterals, etc.,); calculate the probabilities of expected loss of each portfolio and
/ or investments; assign the loss factors to the new operations (rating and scoring); measure the risk values of the portfolios
and / or investments according to different scenarios through historical simulations; establish limits to potential losses based
on the different risks incurred; determine the possible impacts of structural risks in the Consolidated Statements of Results of
the Bank; set the limits and alerts that guarantee the Bank's liquidity; and identify and quantify operational risks by business
lines and thus facilitate their mitigation through corrective actions. The CDA is primarily responsible for monitoring compliance
with the Bank's risk management policies and procedures, and for reviewing the adequacy of the risk management framework in relation
to the risks the Bank faces.
Credit risk
Credit risk is the risk that one of the parties to the financial instrument contract fails to comply with
its contractual obligations due to insolvency or disability of natural or legal persons and causes a financial loss in the other
party. For purposes of credit risk management, the Bank consolidates all the elements and components of credit risk exposure (ex.
risk of individual default by creditor, innate risk of a line of business or sector, and / or geographical risk).
Mitigation of credit risk for loans and accounts
receivable
The Board of Directors has delegated
responsibility for credit risk management to the Comprehensive Risk Committee (CIR) and the Bank's risk departments whose roles
are summarized as follows:
-
Formulation of credit policies,
in consultation with the business units, covering the requirements of guarantee, credit evaluation, risk rating and presentation
of reports, documents and legal procedures in compliance with the regulatory, legal and internal requirements of the Bank.
-
Establish the structure of the authorization for the approval and renewal of credit applications.
The Bank structures levels of credit risk by placing limits on the concentration of that risk in terms of individual debtors, groups
of debtors, segments of industries and countries. The authorization limits are assigned to the respective officers of the business
unit (commercial, consumption, PYMEs) to be monitored permanently by the Administration, in addition, these limits are reviewed
periodically. The risk assessment teams at branch level interact regularly with clients, however for large operations, the risk
teams of the parent company and even the CIR, work directly with clients in the evaluation of credit risks and preparation of credit
risk, credit applications, Inclusively, Banco Santander España participates in the process of approving the most significant
loans, for example to clients or economic groups with debt amounts greater than US $ 40 million.
-
Limit concentrations
of exposure to customers,
counterparts, in geographic areas, industries (for accounts receivable or credits), and by issuer,
credit rating and liquidity (for investments).
-
Develop and maintain the
Bank's
risk classification in order to classify the risks according to the degree of exposure to financial loss faced by the
respective financial instruments and with the purpose of focusing the management or risk management specifically on the associated
risks.
-
Review and evaluate credit risk
the
risk division of the Administration are largely independent of the commercial division of the bank and evaluate all credit risks
in excess of the designated limits, prior to the approval of credits to customers or prior to the acquisition of specific investments,
Credit renewals and revisions are subject to similar processes.
Consolidated Financial Statements December 2018 / Banco Santander Chile
136
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
In the preparation of
a credit request for a corporate client, the Bank verifies several parameters such as the debt service capacity (including, generally,
projected cash flows), the client's financial history and / or projections for the economic sector in which it operates. The risk
division is closely involved in this process. All requests contain an analysis of the client's strengths and weaknesses, a rating
and a recommendation, the credit limits are not determined based on the outstanding balances of the clients, but on the direct
and indirect credit risk of the financial group. For example, a limited company would be evaluated together with its subsidiaries
and affiliates.
Consumer loans are evaluated
and approved by their respective risk divisions (individuals, PYMEs) and the evaluation process is based on an evaluation system
known as Garra (Banco Santander) and Syseva of Santander Banefe, both processes are decentralized, automated and they are based
on a scoring system that includes the credit risk policies implemented by the Bank's Board of Directors. The credit application
process is based on the collection of information to determine the client's financial situation and ability to pay. The parameters
that are used to assess the credit risk of the applicant include several variables such as: income levels, duration of current
employment, indebtedness, reports of credit agencies.
Mitigation of credit risk of other financial
assets (investments, derivatives, commitments)
As part of the process of acquiring financial investments and financial instruments, the Bank considers the
probability of default of issuers or counterparties using internal and external evaluations such as independent risk evaluators
of the Bank, In addition, the Bank is governed by a strict and conservative policy which ensures that the issuers of its investments
and counterparties in transactions of derivative instruments are of the highest reputation.
In addition, the Bank operates
with various instruments that, although they involve exposure to credit risk, are not reflected in the Consolidated Statement of
Financial Position, such as: guarantees and bonds, documentary letters of credit, guarantee slips and commitments to grant loans.
The guarantees and bonds represent
an irrevocable payment obligation, in the event that a guaranteed client does not fulfill its obligations with third parties who
are liable to the Bank, the latter will make the corresponding payments, so that these transactions represent the same exposure
to credit risk as a common loan.
Documentary letters of credit
are commitments documented by the Bank on behalf of the client that are guaranteed by the merchandise shipped to which they are
related and, therefore, have a lower risk than direct indebtedness, Guarantee slips correspond to contingent commitments that are
made effective only if the client does not comply with the performance of works agreed with a third party, guaranteed by them.
When it comes to commitments
to grant credit, the Bank is potentially exposed to losses in an amount equivalent to the unused total of the commitment, However,
the probable amount of loss is less than the unused total of the commitment. The Bank monitors the maturity of credit lines because
generally long-term commitments have a higher credit risk than short-term commitments.
Maximum credit risk exposure
For financial assets recognized in the Consolidated
Statement of Financial Position, exposure to credit risk is equal to their book value, for financial guarantees granted, the maximum
exposure to credit risk is the maximum amount that the Bank would have to pay if the guarantee were executed.
Consolidated Financial Statements December 2018 / Banco Santander Chile
137
Banco
Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Below is the distribution by financial asset and off-balance a sheet
commitments of the Bank's maximum exposure to credit risk as of December 31, 2018 and 2017, without deduction of collateral, security
interests or credit improvements received:
|
|
|
|
|
As of December 31,
|
|
|
|
|
Note
|
|
2018
Amount of
exposure
MCh$
|
|
|
2017
Amount of
exposure
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in banks
|
|
5
|
|
|
1,240,578
|
|
|
|
839,561
|
|
|
Cash items in process of collection
|
|
5
|
|
|
353,757
|
|
|
|
668,145
|
|
|
Trading investments
|
|
6
|
|
|
77,041
|
|
|
|
485,736
|
|
|
Investments under resale agreements
|
|
7
|
|
|
-
|
|
|
|
-
|
|
|
Financial derivative contracts
|
|
8
|
|
|
3,100,635
|
|
|
|
2,238,647
|
|
|
Loans and accounts receivable from customers and interbank loans, net
|
|
9 y 10
|
|
|
29,485,435
|
|
|
|
26,910,141
|
|
|
Available for sale investments
|
|
11
|
|
|
2,394,323
|
|
|
|
2,574,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-balance commitments:
|
|
|
|
|
|
|
|
|
|
|
|
Letters of credit issued
|
|
|
|
|
223,420
|
|
|
|
201,699
|
|
|
Foreign letters of credit confirmed
|
|
|
|
|
57,038
|
|
|
|
75,499
|
|
|
Guarantees
|
|
|
|
|
1,954,205
|
|
|
|
1,823,793
|
|
|
Available credit lines
|
|
|
|
|
8,997,650
|
|
|
|
8,135,489
|
|
|
Personal guarantees
|
|
|
|
|
133,623
|
|
|
|
81,577
|
|
|
Other irrevocable credit commitments
|
|
|
|
|
327,297
|
|
|
|
260,691
|
|
|
Total
|
|
|
|
|
48,345,002
|
|
|
|
44,295,524
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
138
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Regarding the quality of the credits, these are classified in
accordance with what is described in the compendium of regulations of the SBIF as of December 31, 2018 and 2017:
|
Category
|
|
As
of December 31,
|
|
|
Commercial
|
|
2018
|
|
|
2017
|
|
|
Portfolio
|
|
Individual
|
|
|
Percentage
|
|
|
Allowance
|
|
|
Percentage
|
|
|
Individual
|
|
|
Percentage
|
|
|
Allowance
|
|
|
Percentage
|
|
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A1
|
|
|
29,998
|
|
|
|
0.10
|
|
|
|
9
|
|
|
|
0.00
|
|
|
|
166,434
|
|
|
|
0.60
|
|
|
|
58
|
|
|
|
0.01
|
|
|
A2
|
|
|
1,074,789
|
|
|
|
3.55
|
|
|
|
735
|
|
|
|
0.09
|
|
|
|
884,638
|
|
|
|
3.19
|
|
|
|
568
|
|
|
|
0.07
|
|
|
A3
|
|
|
2,746,323
|
|
|
|
9.07
|
|
|
|
3,811
|
|
|
|
0.48
|
|
|
|
2,753,676
|
|
|
|
9.93
|
|
|
|
3,523
|
|
|
|
0.43
|
|
|
A4
|
|
|
3,222,102
|
|
|
|
10.64
|
|
|
|
18,697
|
|
|
|
2.35
|
|
|
|
3,203,629
|
|
|
|
11.56
|
|
|
|
16,980
|
|
|
|
2.08
|
|
|
A5
|
|
|
1,796,864
|
|
|
|
5.93
|
|
|
|
21,455
|
|
|
|
2.69
|
|
|
|
1,431,586
|
|
|
|
5.16
|
|
|
|
18,171
|
|
|
|
2.23
|
|
|
A6
|
|
|
981,170
|
|
|
|
3.24
|
|
|
|
15,159
|
|
|
|
1.90
|
|
|
|
745,193
|
|
|
|
2.69
|
|
|
|
12,900
|
|
|
|
1.58
|
|
|
B1
|
|
|
495,102
|
|
|
|
1.64
|
|
|
|
11,550
|
|
|
|
1.45
|
|
|
|
330,463
|
|
|
|
1.19
|
|
|
|
8,328
|
|
|
|
1.02
|
|
|
B2
|
|
|
82,112
|
|
|
|
0.27
|
|
|
|
5,561
|
|
|
|
0.70
|
|
|
|
53,392
|
|
|
|
0.19
|
|
|
|
2,286
|
|
|
|
0.28
|
|
|
B3
|
|
|
67,703
|
|
|
|
0.22
|
|
|
|
2,943
|
|
|
|
0.37
|
|
|
|
64,995
|
|
|
|
0.23
|
|
|
|
3,661
|
|
|
|
0.45
|
|
|
B4
|
|
|
93,133
|
|
|
|
0.31
|
|
|
|
21,871
|
|
|
|
2.75
|
|
|
|
90,224
|
|
|
|
0.33
|
|
|
|
21,480
|
|
|
|
2.63
|
|
|
C1
|
|
|
154,708
|
|
|
|
0.51
|
|
|
|
3,094
|
|
|
|
0.39
|
|
|
|
145,033
|
|
|
|
0.52
|
|
|
|
2,901
|
|
|
|
0.36
|
|
|
C2
|
|
|
55,611
|
|
|
|
0.18
|
|
|
|
5,562
|
|
|
|
0.70
|
|
|
|
56,871
|
|
|
|
0.21
|
|
|
|
5,687
|
|
|
|
0.70
|
|
|
C3
|
|
|
45,171
|
|
|
|
0.15
|
|
|
|
11,293
|
|
|
|
1.42
|
|
|
|
39,825
|
|
|
|
0.14
|
|
|
|
9,956
|
|
|
|
1.22
|
|
|
C4
|
|
|
36,005
|
|
|
|
0.12
|
|
|
|
14,402
|
|
|
|
1.81
|
|
|
|
53,261
|
|
|
|
0.19
|
|
|
|
21,304
|
|
|
|
2.61
|
|
|
C5
|
|
|
65,465
|
|
|
|
0.22
|
|
|
|
42,552
|
|
|
|
5.34
|
|
|
|
71,896
|
|
|
|
0.26
|
|
|
|
46,732
|
|
|
|
5.73
|
|
|
C6
|
|
|
71,035
|
|
|
|
0.23
|
|
|
|
63,932
|
|
|
|
8.03
|
|
|
|
77,048
|
|
|
|
0.28
|
|
|
|
69,343
|
|
|
|
8.50
|
|
|
Subtotal
|
|
|
11,017,291
|
|
|
|
36.38
|
|
|
|
242,626
|
|
|
|
30.47
|
|
|
|
10,168,164
|
|
|
|
36.67
|
|
|
|
243,878
|
|
|
|
29.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individual
|
|
|
Percentage
|
|
|
Allowance
|
|
|
Percentage
|
|
|
Individual
|
|
|
Percentage
|
|
|
Allowance
|
|
|
Percentage
|
|
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal Portfolio
|
|
|
3,793,923
|
|
|
|
12.53
|
%
|
|
|
60,255
|
|
|
|
7.56
|
%
|
|
|
3,488,633
|
|
|
|
12.58
|
%
|
|
|
58,728
|
|
|
|
7.20
|
%
|
|
Impaired portfolio
|
|
|
443,539
|
|
|
|
1.46
|
%
|
|
|
170,024
|
|
|
|
21.34
|
%
|
|
|
414,530
|
|
|
|
1.50
|
%
|
|
|
160,345
|
|
|
|
19.65
|
%
|
|
Subtotal
|
|
|
4,237,462
|
|
|
|
13.99
|
%
|
|
|
230,279
|
|
|
|
28.90
|
%
|
|
|
3,903,163
|
|
|
|
14.08
|
%
|
|
|
219,073
|
|
|
|
26.85
|
%
|
|
Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal Portfolio
|
|
|
9,678,316
|
|
|
|
31.96
|
%
|
|
|
20,979
|
|
|
|
2.63
|
%
|
|
|
8,634,351
|
|
|
|
31.14
|
%
|
|
|
20,174
|
|
|
|
2.47
|
%
|
|
Impaired portfolio
|
|
|
472,665
|
|
|
|
1.56
|
%
|
|
|
43,262
|
|
|
|
5.43
|
%
|
|
|
462,544
|
|
|
|
1.67
|
%
|
|
|
48,892
|
|
|
|
5.99
|
%
|
|
Subtotal
|
|
|
10,150,981
|
|
|
|
33.52
|
%
|
|
|
64,241
|
|
|
|
8.06
|
%
|
|
|
9,096,895
|
|
|
|
32.81
|
%
|
|
|
69,066
|
|
|
|
8.46
|
%
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal Portfolio
|
|
|
4,601,694
|
|
|
|
15.20
|
%
|
|
|
103,020
|
|
|
|
12.93
|
%
|
|
|
4,230,567
|
|
|
|
15.26
|
%
|
|
|
114,099
|
|
|
|
13.99
|
%
|
|
Impaired portfolio
|
|
|
274,595
|
|
|
|
0.91
|
%
|
|
|
156,422
|
|
|
|
19.64
|
%
|
|
|
327,125
|
|
|
|
1.18
|
%
|
|
|
169,657
|
|
|
|
20.80
|
%
|
|
Subtotal
|
|
|
4,876,289
|
|
|
|
16.11
|
%
|
|
|
259,442
|
|
|
|
32.57
|
%
|
|
|
4,557,692
|
|
|
|
16.44
|
%
|
|
|
283,756
|
|
|
|
34.79
|
%
|
|
Total
|
|
|
30,282,023
|
|
|
|
100.00
|
%
|
|
|
796,588
|
|
|
|
100.00
|
%
|
|
|
27,725,914
|
|
|
|
100.00
|
%
|
|
|
815,773
|
|
|
|
100.00
|
%
|
As December 31, 2018, the Bank does not believe that the credit quality of its other financial assets or liabilities
is of sufficient significance to warrant further disclosure.
Consolidated Financial Statements December 2018 / Banco Santander Chile
139
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Regarding the individual evaluation portfolio,
the different categories correspond to:
- Categories A or Portfolio in Normal Compliance,
is one that is made up of debtors whose ability to pay them
it allows compliance with its financial
obligations and commitments, and that according to the evaluation of its economic-financial situation, it is not
seen that this condition changes in the
short term.
- Categories B or Substandard Portfolio,
is one that contemplates debtors with financial difficulties or significant worsening of their ability to pay and over which there
are reasonable doubts about the total reimbursement of principal and interest in the terms agreed upon, showing a low slack to
meet with your financial obligations in the short term.
- Categories C or Portfolio in Default,
is made up of those debtors whose recovery is considered remote, since they show a deteriorated or no capacity to pay.
As for the group evaluation portfolios,
a joint evaluation of the operations that compose it is carried out.
Refer to Note 31 for details of impaired Bank loans and their respective provisions, also refer to the Note
20 for a breakdown of the maturities of the Bank's financial assets.
Exposure to credit risk in derivative
contracts with abroad
As of December 31, 2018, the Bank's foreign
exposure, including the counterparty risk in the derivative portfolio, was USD 2,090 million or 4,27% of the assets, In the table
below, the exposure to derivative instruments is calculated using the equivalent credit risk, which is equal to the net value of
the replacement plus the maximum potential value, considering the collateral in cash, which mitigates the exposure.
Below, additional details are included regarding our exposure to those countries that have a rating of 1 and
that correspond to the largest exposures, the following is the exposure as of December 31, 2018, considering the fair value of
the derivative instruments.
|
Country
|
|
Classification
|
|
Derivative instrument
(adjusted to market)
M USD
|
|
|
Deposits
M USD
|
|
|
Loans
MUSD
|
|
|
Financial
investments
M USD
|
|
|
Total
exposure
M USD
|
|
|
Bolivia
|
|
3
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.06
|
|
|
|
0.00
|
|
|
|
0.06
|
|
|
China
|
|
2
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
243.95
|
|
|
|
0.00
|
|
|
|
243.95
|
|
|
Italia
|
|
2
|
|
|
0.00
|
|
|
|
6.25
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
6.25
|
|
|
Mexico
|
|
2
|
|
|
0.00
|
|
|
|
0.04
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.04
|
|
|
Panama
|
|
2
|
|
|
0.56
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.56
|
|
|
Peru
|
|
2
|
|
|
2.26
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
2.26
|
|
|
Thailand
|
|
2
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.31
|
|
|
|
0.00
|
|
|
|
0.31
|
|
|
Turkey
|
|
3
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
9.49
|
|
|
|
0.00
|
|
|
|
9.49
|
|
|
Colombia
|
|
2
|
|
|
100.41
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
100.41
|
|
|
Total
|
|
|
|
|
103.23
|
|
|
|
6.29
|
|
|
|
253.81
|
|
|
|
0.00
|
|
|
|
363.33
|
|
The total amount of this exposure to derivative instruments
must be offset daily with the collateral and, therefore, the exposure to net loans is USD $ 0.
Consolidated Financial Statements December 2018 / Banco Santander Chile
140
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Our exposure to Spain within the group is as follows:
|
|
|
|
|
|
|
Derivative instruments
|
|
|
|
|
|
|
|
|
Financial
|
|
|
Total
|
|
|
|
|
|
|
|
|
(adjusted to market)
|
|
|
Deposits
|
|
|
Loans
|
|
|
investments
|
|
|
exposure
|
|
|
Counterpart
|
|
Country
|
|
Classification
|
|
M USD
|
|
|
M USD
|
|
|
M USD
|
|
|
M USD
|
|
|
M USD
|
|
|
Banco Santander España (*)
|
|
España
|
|
1
|
|
|
216.65
|
|
|
|
332.83
|
|
|
|
-
|
|
|
|
-
|
|
|
|
549.48
|
|
The total amount of this exposure to derivative
instruments must be offset daily with the collateral and, therefore, the exposure to net loans is USD $0,28.
(*) We include our exposure to the Santander branches in New
York and Hong Kong as exposure to Spain.
Impairment of other financial instruments
As of December 31, 2018, and 2017, the Bank did not have significant impairments in its financial assets other
than credits and / or accounts receivable.
Security interests and credit improvements
The maximum exposure to credit risk, in
some cases, is reduced by guarantees, credit enhancements and other actions that mitigate the Bank's exposure, Based on this, the
constitution of guarantees is a necessary but not sufficient instrument in the granting of a loan; therefore, the acceptance of
risk by the Bank requires the verification of other variables or parameters such as the ability to pay or generate resources to
mitigate the risk incurred.
The procedures for the management and valuation
of guarantees are included in the internal risk management policy. These policies establish the basic principles for the management
of credit risk, which includes the management of guarantees received in transactions with customers, in this sense, the risk management
model includes assessing the existence of appropriate and sufficient guarantees that allow the recovery of the loan to be carried
out when the debtor's circumstances do not allow it to meet its obligations.
The procedures used for the valuation of
the guarantees are in accordance with the best practices of the market, which involve the use of valuations in real estate guarantees,
market price in stock values, value of the shares in an investment fund, etc. All the collateral received must be properly instrumented
and registered in the corresponding registry, as well as having the approval of the Bank's legal divisions.
The Bank also has rating tools that allow ordering
the credit quality of operations or clients, in order to study how this probability varies, the Bank has historical databases that
store the information generated internally. The qualification tools vary according to the segment of the analyzed client (commercial,
consumption, SMEs, etc.,).
The following is a breakdown of impaired
and non-impaired financial assets that have collateral, collateral or credit enhancements associated with the Bank as of December
31, 2018 and 2017:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
Non-impaired financial assets:
|
|
|
|
|
|
|
|
|
|
Properties/mortgages
|
|
|
22,047,354
|
|
|
|
19,508,151
|
|
|
Investments and others
|
|
|
2,200,776
|
|
|
|
2,108,962
|
|
|
Impaired financial assets:
|
|
|
|
|
|
|
|
|
|
Properties/mortgages
|
|
|
119,181
|
|
|
|
152,252
|
|
|
Investments and others
|
|
|
865
|
|
|
|
1,087
|
|
|
Total
|
|
|
24,368,176
|
|
|
|
21,770,452
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
141
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Liquidity risk
Liquidity risk is the risk that the Bank has difficulties in
complying with the obligations associated with its financial obligations.
Liquidity risk management
The Bank is exposed daily to requirements
of cash funds from several banking transactions such as current account drafts, payments of term deposits, guarantee payments,
disbursements of derivative operations, etc. As is inherent in banking activity, the Bank does not hold funds in cash to cover
the balance of those positions, since experience shows that only a minimum level of these funds will be withdrawn, which can be
foreseen with a high degree of certainty.
The Bank's approach to liquidity management
is to ensure, to the extent possible, that it always has sufficient liquidity to meet its obligations at maturity, under normal
circumstances and stress conditions, without incurring unacceptable losses or risking risk, of damage to the reputation of the
Bank. The Board sets limits on a minimum portion of funds to be made available to meet such payments and on a minimum level of
inter-bank operations and other lending facilities that should be available to cover drafts at unexpected levels of demand, which
is reviewed periodically. On the other hand, the Bank must comply with regulatory limits dictated by the SBIF for the mismatches
of terms.
These limits affect the mismatches between
future income and expenditure flows of the Bank considered individually and are the following:
|
|
i,
|
Mismatches of up to 30 days for all currencies, up to
once the basic capital;
|
|
|
ii,
|
mismatches of up to 30 days for foreign currencies, up
to once the basic capital; Y
|
|
|
iii,
|
mismatches of up to 90 days for all currencies, twice
the basic capital.
|
The treasury department receives information
from all the business units on the liquidity profile of its financial assets and liabilities and details of other projected cash
flows derived from future businesses. According to this information, treasury maintains a portfolio of liquid assets in the short
term, composed largely of liquid investments, loans and advances to other banks, to ensure that the Bank maintains sufficient liquidity.
The liquidity needs of the business units are met through short-term transfers from treasury to cover any short-term fluctuation
and long-term financing to address all structural liquidity requirements.
The Bank monitors its liquidity position on
a daily basis, determining the future flows of its expenses and revenues, in addition, stress tests are carried out at the end
of each month, for which a variety of scenarios are used, covering both normal market conditions and fluctuation conditions. The
liquidity policy and procedures are subject to review and approval by the Bank's Board of Directors, Periodic reports are generated
detailing the liquidity position of the Bank and its affiliates, including any exceptions and corrective measures adopted, which
are regularly reviewed by the ALCO.
The Bank is based on client (retail) and institutional
deposits, bonds with banks, debt instruments and time deposits as its main sources of financing, although most of the obligations
with banks, debt instruments and time deposits have maturities of more than one year, customer and retail deposits tend to have
shorter maturities and a large proportion of them are payable within 90 days, days. The short-term nature of these deposits increases
the liquidity risk of the Bank and therefore the Bank actively manages this risk by constantly monitoring market trends and price
management.
Exposure to liquidity risk
One of the key measures used by the Bank
to manage liquidity risk is the proportion of net liquid assets to customer deposits, For this purpose, the net liquid assets must
include cash / cash, cash equivalents and debt investments for which there is an active and liquid market minus the deposits of
the banks, fixed income securities issued, loans and other commitments maturing in next month. A similar measure, but not identical,
is used as a calculation to measure the Bank's compliance with the liquidity limit established by the SBIF, where the Bank determines
the mismatch between its rights and obligations according to maturity according to the estimated performance.
Consolidated Financial Statements December 2018 / Banco Santander Chile
142
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
The proportions of the mismatches at 30 days in relation to capital
and 90 days in relation to 2 times the capital is shown in the following table:
|
|
|
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
30 days
|
|
|
(20
|
)
|
|
|
(48
|
)
|
|
30 days foreign
|
|
|
-
|
|
|
|
(22
|
)
|
|
90 days
|
|
|
(37
|
)
|
|
|
(51
|
)
|
Following is a breakdown, by contractual
maturities, of the balances of the Bank's assets and liabilities as of December 31, 2018 and 2017, considering also those unrecognized
commitments:
|
As of December 31, 2018
|
|
Demand
|
|
|
Up to 1
month
|
|
|
Between 1
and 3 months
|
|
|
Between 3
and 12 months
|
|
|
Between 1
and 3 years
|
|
|
Between 3
and 5 years
|
|
|
More than
5 years
|
|
|
Total
|
|
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
Asset expiration (Note 20)
|
|
|
2,827,643
|
|
|
|
5,798,664
|
|
|
|
2,451,466
|
|
|
|
5,504,699
|
|
|
|
6,214,328
|
|
|
|
3,808,562
|
|
|
|
11,838,090
|
|
|
|
38,443,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expiration of liabilities (Note 20)
|
|
|
(9,786,584
|
)
|
|
|
(5,517,050
|
)
|
|
|
(4,675,171
|
)
|
|
|
(5,633,116
|
)
|
|
|
(3,268,117
|
)
|
|
|
(2,027,157
|
)
|
|
|
(4,290,707
|
)
|
|
|
(35,197,902
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expiration
|
|
|
(6,958,941
|
)
|
|
|
281,614
|
|
|
|
(2,223,705
|
)
|
|
|
(128,417
|
)
|
|
|
2,946,211
|
|
|
|
1,781,405
|
|
|
|
7,547,383
|
|
|
|
3,245,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrecognized loan / credit commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees and bonds
|
|
|
-
|
|
|
|
(22,128
|
)
|
|
|
(63,230
|
)
|
|
|
(41,637
|
)
|
|
|
-
|
|
|
|
(6,628
|
)
|
|
|
-
|
|
|
|
(133,623
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Letters of credit from abroad confirmed
|
|
|
-
|
|
|
|
(3,842
|
)
|
|
|
(9,128
|
)
|
|
|
(33,177
|
)
|
|
|
(212
|
)
|
|
|
(10,679
|
)
|
|
|
-
|
|
|
|
(57,038
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(12,469
|
)
|
|
|
(110,970
|
)
|
|
|
(54,015
|
)
|
|
|
-
|
|
|
|
(45,937
|
)
|
|
|
(2
|
)
|
|
|
(223,393
|
)
|
|
Letters of documentary credits issued Guarantee
|
|
|
-
|
|
|
|
(663,642
|
)
|
|
|
(188,147
|
)
|
|
|
(905,554
|
)
|
|
|
(75,909
|
)
|
|
|
(87,597
|
)
|
|
|
(33,356
|
)
|
|
|
(1,954,205
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net maturity, including
commitments
|
|
|
(6,958,941
|
)
|
|
|
(420,467
|
)
|
|
|
(2,595,180
|
)
|
|
|
(1,162,800
|
)
|
|
|
2,870,090
|
|
|
|
1,630,564
|
|
|
|
7,514,025
|
|
|
|
877,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Until
|
|
|
Between 1 y 3
|
|
|
Between 3 y 12
|
|
|
Between 1 y 3
|
|
|
Between 3 y 5
|
|
|
More than 5
|
|
|
|
|
|
As of December 31, 2017
|
|
Demand
|
|
|
1 month
|
|
|
months
|
|
|
months
|
|
|
years
|
|
|
years
|
|
|
years
|
|
|
Total
|
|
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
Asset expiration (Note 20)
|
|
|
3,214,657
|
|
|
|
2,480,411
|
|
|
|
2,655,971
|
|
|
|
4,933,977
|
|
|
|
6,240,042
|
|
|
|
4,375,295
|
|
|
|
11,569,324
|
|
|
|
35,469,677
|
|
|
Expiration of liabilities (Note 20)
|
|
|
(8,966,477
|
)
|
|
|
(5,600,399
|
)
|
|
|
(4,852,836
|
)
|
|
|
(3,991,665
|
)
|
|
|
(2,461,121
|
)
|
|
|
(2,466,344
|
)
|
|
|
(3,679,897
|
)
|
|
|
(32,018,739
|
)
|
|
Net expiration
|
|
|
(5,751,820
|
)
|
|
|
(3,119,988
|
)
|
|
|
(2,196,865
|
)
|
|
|
942,312
|
|
|
|
3,778,921
|
|
|
|
1,908,951
|
|
|
|
7,889,427
|
|
|
|
3,450,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrecognized loan / credit commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees and bonds
|
|
|
-
|
|
|
|
(16,028
|
)
|
|
|
(13,382
|
)
|
|
|
(47,288
|
)
|
|
|
(315
|
)
|
|
|
(4,564
|
)
|
|
|
-
|
|
|
|
(81,577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Letters of credit from abroad confirmed
|
|
|
-
|
|
|
|
(16,681
|
)
|
|
|
(33,513
|
)
|
|
|
(21,277
|
)
|
|
|
(1,197
|
)
|
|
|
(2,831
|
)
|
|
|
-
|
|
|
|
(75,499
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(12,367
|
)
|
|
|
(115,720
|
)
|
|
|
(43,029
|
)
|
|
|
-
|
|
|
|
(30,554
|
)
|
|
|
(29
|
)
|
|
|
(201,699
|
)
|
|
Letters of documentary credits issued Guarantee
|
|
|
-
|
|
|
|
(514,510
|
)
|
|
|
(244,543
|
)
|
|
|
(835,030
|
)
|
|
|
(147,204
|
)
|
|
|
(61,275
|
)
|
|
|
(21,231
|
)
|
|
|
(1,823,793
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net maturity, including
commitments
|
|
|
(5,751,820
|
)
|
|
|
(3,679,574
|
)
|
|
|
(2,604,023
|
)
|
|
|
(4,312
|
)
|
|
|
3,630,205
|
|
|
|
1,809,727
|
|
|
|
7,868,167
|
|
|
|
1,268,370
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
143
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
The above tables show the undiscounted cash flows of the Bank's financial assets and liabilities on the estimated
maturity basis, the expected cash flows of the Bank from these instruments can vary considerably compared to this analysis. For
example, demand deposits are expected to remain stable or have an increasing trend, and unrecognized loan commitments are not expected
to be executed all that have been arranged, in addition, the above breakdown excludes available lines of credit, since they lack
contractual defined maturities.
Market risk
Market risk arises as a consequence of
the activity maintained in the markets, through financial instruments whose value may be affected by variations in market conditions,
reflected in changes in the different assets and financial risk factors. The risk can be mitigated through hedges through other
products (assets / liabilities or derivatives), or by undoing the operation / open position. The objective of market risk management
is the management and control of exposure to market risk within acceptable parameters.
There are four major risk factors that
affect market prices: interest rates, exchange rates, price, and inflation, Additionally, and for certain positions, it is also
necessary to consider other risks, such as spread risk, base risk, commodity risk, volatility or correlation risk.
Market risk management
The internal management of the Bank to
measure market risk is mainly based on the procedures and standards of Santander Spain, which are based on analyzing management
in three main components:
- trading portfolio;
- local financial management portfolio;
- portfolio of foreign financial management.
The trading portfolio consists mainly of
those investments valued at their fair value, free of any restriction for immediate sale and that are often bought and sold by
the Bank with the intention of selling them in the short term in order to benefit from the short-term price variations. The financial
management portfolios include all financial investments not considered in the trading portfolio.
The general responsibility for market risk
lies with the ALCO. The Bank's risk / finance department is responsible for the preparation of detailed management policies and
their application in the Bank's operations in accordance with the guidelines established by the ALCO and by the Global Risk Department
of Banco Santander de España.
The functions of the department in relation to the trading portfolio
entail the following:
i. apply "Value at Risk" (VaR) techniques to measure interest
rate risk,
ii. adjust the trading portfolios to the market and measure the
profit and daily loss of commercial activities,
iii. compare the real VAR with the established limits,
iv. establish procedures to control losses in excess of predetermined
limits and
v. Provide information on the negotiation activities
for the ALCO, other members of the Bank's Management, and the Global Risk Department of Santander — Spain.
The functions of the department in relation to the financial
management portfolios entail the following:
i, apply sensitivity simulations (as explained below) to
measure the interest rate risk of activities in local currency and the potential loss foreseen by these simulations and
ii, provides the respective daily reports to the ALCO,
other members of the Bank's Management, and the Global Risk Department of Santander — Spain.
Consolidated Financial Statements December 2018 / Banco Santander Chile
144
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Market risk - Negotiation portfolio
The Bank applies VaR methodologies to measure
the market risk of its trading portfolio. The Bank has a consolidated commercial position composed of fixed income investments,
foreign currency trading and a minimum equity investment position. The composition of this portfolio consists essentially of bonds
of the Central Bank of Chile, mortgage bonds and locally issued low-risk corporate bonds. At the end of the year, the trading portfolio
did not present investments in stock portfolios.
For the Bank, the VaR estimate is made under the historical simulation methodology, which consists of observing
the behavior of the losses and gains that would have occurred with the current portfolio if the market conditions of a certain
historical period were in force, from that information, infer the maximum loss with a certain level of confidence. The methodology
has the advantage of accurately reflecting the historical distribution of market variables and of not requiring any specific probability
distribution assumption. All VaR measures are intended to determine the distribution function for the change in the value of a
given portfolio, and once this distribution is known, to calculate the percentile related to the level of confidence needed, which
will be equal to the value at risk in virtue of those parameters. As calculated by the Bank, the VaR is an estimate of the maximum
expected loss of the market value of a given portfolio within a 1-day horizon at a confidence level of 99,00%, It is the maximum
loss of a day in which the Bank could expect to suffer in a certain portfolio with a 99,00% confidence level, In other words, it
is the loss that the Bank would expect to exceed only 1,0% of the time. The VaR provides a single estimate of market risk that
is not comparable from one market risk to another. The returns are calculated using a 2-year time window or at least 520 data obtained
from the reference date of VaR calculation backwards in time.
The Bank does not calculate three separate
VaR’s, A single VaR is calculated for the entire trading portfolio, which, in addition, is segregated by type of risk. The
VaR program performs a historical simulation and calculates a profit and loss statement (G & P) for 520 data points (days)
for each risk factor (fixed income, currencies and variable income). The G & P of each risk factor is added and a consolidated
VaR calculated with 520 data points or days. At the same time, the VaR is calculated for each risk factor based on the individual
G & P calculated for each factor. Moreover, a weighted VaR is calculated in the manner described above but which gives a weight
greater than the 30 most recent data points. The largest of the two VaR’s is reported, in 2015 and 2014, the same VaR model
was still used and there has been no change in methodology.
The Bank uses the VaR estimates to deliver
a warning in case the statistically estimated losses in the trading portfolio exceed the prudent levels and, therefore, certain
predetermined limits exist.
Limitations of the VaR model
When applying this calculation methodology,
no assumption is made about the probability distribution of changes in risk factors, simply use the changes observed historically
to generate scenarios for the risk factors in which each of the positions will be valued, in portfolio.
It is necessary to define a valuation function
fj (xi) for each instrument j, preferably the same one that it uses to calculate the market value and results of the daily position.
This valuation function will be applied in each scenario to generate simulated prices of all the instruments in each scenario.
In addition, the VaR methodology must be interpreted considering
the following limitations:
- Changes in market rates and prices may not
be independent and identically distributed random variables, nor may they 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 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 possible extreme and adverse market
fluctuations regardless of the period of time used;
- a 1-day time horizon may not fully capture
those market risk positions that cannot be liquidated or hedged in one day, It would not be possible to liquidate or cover all
positions in a day;
Consolidated Financial Statements December 2018 / Banco Santander Chile
145
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
- VaR is
calculated at the close of business, however trading positions may change substantially during the trading day;
- The use of 99% confidence level does not take into account,
nor does it make any statement about, the losses that may occur beyond this level of trust, and
- The model as such VaR does not capture all the complex effects
of the risk factors on the value of the positions or portfolios, and therefore, could underestimate the potential loss
At no time in 2018 and 2017, the Bank exceeded the VaR limits
in relation to the 3 components that make up the trading portfolio: fixed income investments, variable income investments and investments
in foreign currency.
The Bank performs daily back-testing and, in general, it is
discovered that trading losses exceed the estimated VaR almost one in every 100 trading days, At the same time, a limit was established
for the maximum VaR that is willing to accept on the trading portfolio, In both 2018 and 2017, the Bank has remained within the
maximum limit established for the VaR, even in those instances in which the real VaR exceeded the estimate.
The high, low and average levels for each component and for
each year were the following:
|
|
|
2018
|
|
|
2017
|
|
|
VAR
|
|
MMUSD
|
|
|
MMUSD
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
High
|
|
|
5.23
|
|
|
|
5.71
|
|
|
Low
|
|
|
1.21
|
|
|
|
1.56
|
|
|
Average
|
|
|
2.01
|
|
|
|
3.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income investments:
|
|
|
|
|
|
|
|
|
|
High
|
|
|
2.54
|
|
|
|
5.51
|
|
|
Low
|
|
|
1.19
|
|
|
|
1.15
|
|
|
Average
|
|
|
1.71
|
|
|
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable income investments:
|
|
|
|
|
|
|
|
|
|
High
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Low
|
|
|
0.00
|
|
|
|
0.00
|
|
|
Average
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency investments
|
|
|
|
|
|
|
|
|
|
High
|
|
|
4.29
|
|
|
|
4.21
|
|
|
Low
|
|
|
0.09
|
|
|
|
0.53
|
|
|
Average
|
|
|
1.14
|
|
|
|
1.71
|
|
Market risk — local and foreign financial management
The Bank's financial management portfolio
includes most of the Bank's assets and non-trading liabilities, including the loan / loan portfolio. For these portfolios, investment
and financing decisions are heavily influenced by the Bank's commercial strategies.
The Bank uses a sensitivity analysis to
measure the market risk of local and foreign currency (not included in the trading portfolio), The Bank performs a scenario simulation
which will be calculated as the difference between the present value of the flows in the chosen scenario (curve with parallel movement
of 100 bp in all its tranches) and its value in the base scenario (current market) , All positions in local currency indexed to
inflation (UF) are adjusted by a sensitivity factor of 0,57, which represents a change in the rate curve at 57 basis points in
real rates and 100 basis points in nominal rates. The same scenario is carried out for net foreign currency positions and interest
rates in US dollars, The Bank has also established limits regarding the maximum loss that these types of movements in interest
rates may have on capital and net financial income budgeted for the year.
Consolidated Financial Statements December 2018 / Banco Santander Chile
146
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
To determine the consolidated limit, the
foreign currency limit is added to the local currency limit for both the net financial loss limit and the capital and reserve loss
limit, using the following formula:
Bound limit = square root of a2 + b2 + 2ab
a: limit in national currency,
b: limit in foreign currency,
Since it is assumed that the correlation is 0, 2ab = 0.
Limitation of the sensitivity models
The most important assumption is the use
of a change of 100 basis points in the yield curve (57 basis points for real rates), The Bank uses a change of 100 basis points
given that sudden changes of this magnitude are considered realistic. The Global Risk Department of Santander Spain has also established
comparable limits by country, in order to be able to compare, monitor and consolidate the market risk by country in a realistic
and orderly manner,
In addition, the methodology of sensitivity simulations should
be interpreted considering the following limitations:
- The simulation of scenarios assumes that
the volumes remain in the Bank's Consolidated Statement of Financial Position and that they are always renewed at maturity, omitting
the fact that certain considerations of credit risk and prepayments may affect the maturity of certain positions.
- This model assumes an equal change in
the entire performance curve of everything and does not take into account the different movements for different maturities.
- The model does not take into account the sensitivity of volumes
resulting from changes in interest rates.
- The limits to the losses of budgeted financial income are calculated on the basis of expected financial
income for the year that cannot be obtained, which means that the actual percentage of financial income at risk could be greater
than expected.
Market risk – Financial management portfolio – December 31,
2018 and 2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Effect on
financial
income
|
|
|
Effect on capital
|
|
|
Effect on
financial
income
|
|
|
Effect on capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial management portfolio local – currency (MCh$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss limit
|
|
|
48,000
|
|
|
|
192,001
|
|
|
|
48,000
|
|
|
|
175,000
|
|
|
High
|
|
|
43,742
|
|
|
|
189,725
|
|
|
|
37,148
|
|
|
|
141,287
|
|
|
Low
|
|
|
27,854
|
|
|
|
170,450
|
|
|
|
22,958
|
|
|
|
112,818
|
|
|
Average
|
|
|
37,569
|
|
|
|
180,972
|
|
|
|
29,110
|
|
|
|
128,506
|
|
|
Financial management portfolio – foreign currency (Th$US)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss limit
|
|
|
30
|
|
|
|
75
|
|
|
|
30
|
|
|
|
75
|
|
|
High
|
|
|
12
|
|
|
|
38
|
|
|
|
16
|
|
|
|
42
|
|
|
Low
|
|
|
4
|
|
|
|
(10
|
)
|
|
|
4
|
|
|
|
15
|
|
|
Average
|
|
|
9
|
|
|
|
22
|
|
|
|
10
|
|
|
|
23
|
|
|
Financial management portfolio (MCh$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss limit
|
|
|
48,000
|
|
|
|
192,002
|
|
|
|
48,000
|
|
|
|
175,000
|
|
|
High
|
|
|
45,492
|
|
|
|
192,848
|
|
|
|
38,249
|
|
|
|
142,442
|
|
|
Low
|
|
|
29,167
|
|
|
|
168,766
|
|
|
|
23,571
|
|
|
|
112,277
|
|
|
Average
|
|
|
38,908
|
|
|
|
182,557
|
|
|
|
29,948
|
|
|
|
128,360
|
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
147
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Operating risk
Operational risk is the risk of direct
or indirect losses arising from a wide variety of causes related to the Bank's processes, personnel, technology and infrastructure,
and external factors that are not credit, market or liquidity, such as those related to legal or regulatory requirements, Operating
risks arise from all Bank operations.
The objective of the Bank is the management
of operational risk in order to mitigate economic losses and damages to the Bank's reputation with a flexible structure of internal
control.
The Bank's Administration has the primary responsibility
for the development and application of controls to deal with operational risks, this responsibility is supported by the overall
development of the Bank's standards for operational risk management in the following areas:
- Requirements for the proper segregation
of functions, including the independent authorization of operations
- Requirements for reconciliation and supervision
of transactions
- Compliance with applicable legal and regulatory
requirements
- Documentation of controls and procedures
- Requirements for the periodic evaluation
of the applicable operational risks, and the adequacy of the controls and procedures to deal with the identified risks
- Requirements for the disclosure of operating
losses and the proposed corrective measures
- Development of contingency plans
- Training and professional development
/ training
- Establishment of business ethics standards
- Reduction or mitigation of risks, including
contracting insurance policies if they are effective,
Compliance with Bank regulations is supported
by a program of periodic reviews carried out by the Bank's internal audit and whose examination results are presented internally
to the management of the business unit examined and to the Directors and Audit Committee.
Capital risk
The Group defines capital risk as the risk
that the Group or any of its companies may have an insufficient amount and/or quality of capital to: meet the minimum regulatory
requirements in order to operate as a bank; respond to market expectations regarding its creditworthiness; and support its business
growth and any strategic possibilities that might arise, in accordance with its strategic plan.
The objectives in this connection
include most notably:
|
|
●
|
To meet the internal capital and capital
adequacy targets
|
|
|
●
|
To meet the regulatory requirements
|
|
|
●
|
To align the Bank's strategic plan with
the capital expectations of external agents (rating agencies, shareholders and investors, customers, supervisors, etc.)
|
|
|
●
|
To support the growth of the businesses
and any strategic opportunities that may arise
|
The Group
has a capital adequacy position that surpasses the levels required by regulations.
Capital management seeks to optimize value
creation at the Bank an at its different business segment. The Bank continuously evaluates it risk-return ratios through its basic
capital, effective net equity, economic capital and return on equity. With regard to capital adequacy, the Banks conducts its internal
process based on the SBIF standards which are based on Basel Capital Accord (Basel I). Economic capital is the capital required
to support all the risk of the business activity with a given solvency level.
Capital minimum
Capital is managed according to the risk
environment, the economic performance of Chile and the business cycle. Board may modify our current equity policies to address
changes in the mentioned risk environment.
Consolidated Financial Statements December 2018 / Banco Santander Chile
148
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 39
RISK MANAGEMENT, continued
Under the General Banking Law, a bank is
required to have a minimum of UF800,000 (approximately Ch$22,053 million or U.S.$ 31.6 million as of December 31, 2018) of paid-in
capital and reserves, calculated in accordance with Chilean GAAP.
Capital requirement
Chilean banks are required by the General
Banking Law to maintain regulatory capital of at least 8% of risk-weighted assets, net of required loan loss allowance and deductions,
and paid-in capital and reserves ("basic capital") of at least 3% of total assets, net of required loan loss allowances.
Regulatory capital and basic capital are calculated based on the consolidated financial statements prepared in accordance with
the Compendium of Accounting Standards issued by the SBIF. As we are the result of the merger between two predecessors with a relevant
market share in the Chilean market, we are currently required to maintain a minimum regulatory capital to risk-weighted assets
ratio of 11%. As of December 31, 2018, the ratio of our regulatory capital to risk-weighted assets, net of loan loss allowance
and deductions, was 13,40% and our core capital ratio was 7,72%.
Regulatory capital is defined as the aggregate of:
●
a bank's paid-in capital and reserves, excluding capital attributable to subsidiaries and foreign branches or basic capital;
●
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.
The levels of basic capital and effective net equity at the
close of each period are as follows:
|
|
|
As of December 31,
|
|
|
Ratio
As of December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
%
|
|
|
Basic capital
|
|
|
3,239,546
|
|
|
|
3,066,180
|
|
|
|
7,72
|
|
|
|
7,92
|
|
|
Regulatory capital
|
|
|
4,101,664
|
|
|
|
3,881,252
|
|
|
|
13,40
|
|
|
|
13,91
|
|
Concentration of risk
The Bank operates mainly in Chile, so most
of its financial instruments are concentrated in that country, Refer to Note 10 of the financial statements for a breakdown of
the concentration by industry of the Bank's receivables and accounts receivable.
Consolidated Financial Statements December 2018 / Banco Santander Chile
149
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF DECEMBER 31, 2018, AND 2017
NOTE 40
SUBSEQUENT EVENTS
On January 12, 2019, the law that modernizes banking legislation
was published in the official gazette, a regulation that was approved by Congress on October 3, 2018. The new law adopts the highest
international standards in banking regulation and supervision., strengthening international competitiveness and contributing to
Chile's financial stability.
On January 24, 2019, the Bank placed a Senior Bond corresponding
to its "T-14" line for 3,000,000 UF.
On January 30, 2019, the Bank placed a Senior Bond corresponding to its "T-18"
line for 2,000,000 UF.
On February 1, 2019, the Bank placed a Senior Bond corresponding to 30,000,000 EUR.
On February 1, 2019, the Bank placed a Senior Bond corresponding
to its "T-7" line for 2,000,000 UF.
There are no other subsequent events to be disclosed that occurred
between January 1, 2018 and the date of issuance of these Financial Statements (February 28, 2019).
|
FELIPE CONTRERAS FAJARDO
|
Miguel Mata Huerta
|
|
Chief Accounting Officer
|
Chief Executive Officer
|
Consolidated Financial Statements December 2018 / Banco Santander Chile
150