The accompanying notes 1 to 35 form an integral part of the
consolidated interim financial statements.
Banco Santander Chile and Subsidiaries
CONSOLIDATED INTERIM STATEMENTS OF OTHER COMPREHENSIVE INCOME
For the periods ended
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
NOTE
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FOR THE PERIOD
|
|
|
|
|
|
125,659
|
|
|
|
151,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME - ITEMS WHICH WILL BE RECLASSIFIED TO PROFIT OR LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
10
|
|
|
|
9,677
|
|
|
|
4,232
|
|
Cash flow hedge
|
|
21
|
|
|
|
(17,278
|
)
|
|
|
(7,122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income which may be reclassified subsequently
to profit or loss, before tax
|
|
|
|
|
|
(7,601
|
)
|
|
|
(2,890
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax related to items which may be reclassified subsequently to profit
or loss
|
|
13
|
|
|
|
2,052
|
|
|
|
806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period which may be
reclassified subsequently to profit or loss, net of tax
|
|
|
|
|
|
(5,549
|
)
|
|
|
(2,084
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME THAT WILL
NOT BE RECASSIFIED TO PROFIT OR LOSS
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD
|
|
|
|
|
|
120,110
|
|
|
|
149,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
Equity holders of the Bank
|
|
|
|
|
|
119,881
|
|
|
|
148,980
|
|
Non-controlling interest
|
|
23
|
|
|
|
229
|
|
|
|
729
|
|
The accompanying notes 1 to 35 form an integral part of the
consolidated interim financial statements.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
5
Banco Santander Chile and Subsidiaries
CONSOLIDATED INTERIM STATEMENTS OF CHANGES
IN EQUITY
For the periods ended March 31, 2019 and 2018
|
|
|
|
|
RESERVES
|
|
|
VALUATION ADJUSTMENTS
|
|
|
RETAINED EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
Reserves
and
other
retained
earnings
|
|
|
Effects
of
merger
of
companies
under
common
control
|
|
|
Available
for
sale
investments
|
|
|
Hedge
cash
flow
|
|
|
Income
tax
effects
|
|
|
Prior
years
retained
earnings
|
|
|
Income
for
the
year
|
|
|
Provision
for
mandatory
dividends
|
|
|
Total
attributable
to
equity
holders
of
the Bank
|
|
|
Non-
controlling
interest
|
|
|
Total Equity
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity as of December 31, 2017
|
|
|
891,303
|
|
|
|
1,784,042
|
|
|
|
(2,224
|
)
|
|
|
459
|
|
|
|
(3,562
|
)
|
|
|
791
|
|
|
|
-
|
|
|
|
564,815
|
|
|
|
(169,444
|
)
|
|
|
3,066,180
|
|
|
|
41,883
|
|
|
|
3,108,063
|
|
Distribution of income from previous period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
564,815
|
|
|
|
(564,815
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Equity as of January 1, 2018
|
|
|
891,303
|
|
|
|
1,784,042
|
|
|
|
(2,224
|
)
|
|
|
459
|
|
|
|
(3,562
|
)
|
|
|
791
|
|
|
|
564,815
|
|
|
|
-
|
|
|
|
(169,444
|
)
|
|
|
3,066,180
|
|
|
|
41,883
|
|
|
|
3,108,063
|
|
Increase or decrease of capital and reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Dividends distributions/ withdrawals made
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Transfer of retained earnings to reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
Provision for mandatory dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(45,305
|
)
|
|
|
(45,305
|
)
|
|
|
-
|
|
|
|
(45,305
|
)
|
Subtotals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(45,305
|
)
|
|
|
(45,305
|
)
|
|
|
1
|
|
|
|
(45,304
|
)
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,269
|
|
|
|
(7,122
|
)
|
|
|
817
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,036
|
)
|
|
|
(48
|
)
|
|
|
(2,084
|
)
|
Income for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
151,016
|
|
|
|
-
|
|
|
|
151,016
|
|
|
|
777
|
|
|
|
151,793
|
|
Subtotals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,269
|
|
|
|
(7,122
|
)
|
|
|
817
|
|
|
|
-
|
|
|
|
151,016
|
|
|
|
-
|
|
|
|
148,980
|
|
|
|
729
|
|
|
|
149,709
|
|
Equity as of March 31, 2018
|
|
|
891,303
|
|
|
|
1,784,042
|
|
|
|
(2,224
|
)
|
|
|
4,728
|
|
|
|
(10,684
|
)
|
|
|
1,608
|
|
|
|
564,815
|
|
|
|
151,016
|
|
|
|
(214,749
|
)
|
|
|
3,169,855
|
|
|
|
42,613
|
|
|
|
3,212,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity as of December 31, 2018
|
|
|
891,303
|
|
|
|
1,925,246
|
|
|
|
(2,224
|
)
|
|
|
5,114
|
|
|
|
9,803
|
|
|
|
(4,027
|
)
|
|
|
-
|
|
|
|
591,902
|
|
|
|
(177,571
|
)
|
|
|
3,239,546
|
|
|
|
46,163
|
|
|
|
3,285,709
|
|
Distribution of income from previous period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
591,902
|
|
|
|
(591,902
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Equity as of January 1, 2019
|
|
|
891,303
|
|
|
|
1,925,246
|
|
|
|
(2,224
|
)
|
|
|
5,114
|
|
|
|
9,803
|
|
|
|
(4,027
|
)
|
|
|
591,902
|
|
|
|
-
|
|
|
|
(177,571
|
)
|
|
|
3,239,546
|
|
|
|
46,163
|
|
|
|
3,285,709
|
|
Increase or decrease of capital and reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Transactions with own shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Dividend distributions/ withdrawals made
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(423,611
|
)
|
|
|
-
|
|
|
|
(423,611
|
)
|
Other equity movements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Provision for mandatory dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(37,629
|
)
|
|
|
(37,629
|
)
|
|
|
-
|
|
|
|
(37,629
|
)
|
Subtotals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(37,629
|
)
|
|
|
(37,629
|
)
|
|
|
(1
|
)
|
|
|
(37,630
|
)
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,677
|
|
|
|
(17,278
|
)
|
|
|
2,052
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,549
|
)
|
|
|
-
|
|
|
|
(5,549
|
)
|
Income for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
125,430
|
|
|
|
-
|
|
|
|
125,430
|
|
|
|
229
|
|
|
|
125,659
|
|
Subtotals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,677
|
|
|
|
(17,278
|
)
|
|
|
2,052
|
|
|
|
-
|
|
|
|
125,430
|
|
|
|
-
|
|
|
|
119,881
|
|
|
|
229
|
|
|
|
120,110
|
|
Equity as of March 31, 2019
|
|
|
891,303
|
|
|
|
1,925,246
|
|
|
|
(2,224
|
)
|
|
|
14,791
|
|
|
|
(7,475
|
)
|
|
|
(1,975
|
)
|
|
|
591,902
|
|
|
|
125,430
|
|
|
|
(215,200
|
)
|
|
|
3,321,798
|
|
|
|
46,391
|
|
|
|
3,368,189
|
|
(*) See note 1 b) for non-controlling interest.
|
|
Total
attributable to equity
holders
of the Bank
|
|
|
Allocated
to
reserves
|
|
|
Allocated
to
dividends
|
|
|
Distributed
Percentage
|
|
|
Number
of
|
|
|
Dividend
per share
|
|
Period
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
shares
|
|
|
(in chilean pesos)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year 2016 (Shareholders Meeting April 2018)
|
|
|
564,815
|
|
|
|
141,204
|
|
|
|
423,611
|
|
|
|
75
|
|
|
|
188,446,126,794
|
|
|
|
2,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year 2015 (Shareholders Meeting April 2017)
|
|
|
472,351
|
|
|
|
141,706
|
|
|
|
330,645
|
|
|
|
70
|
|
|
|
188,446,126,794
|
|
|
|
1.755
|
|
The accompanying notes 1 to 35 form an integral
part of the consolidated interim financial statements.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
6
Banco Santander Chile and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the periods ended
|
|
|
|
March 31,
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
NOTE
|
|
MCh$
|
|
|
MCh$
|
|
|
A – CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FOR THE PERIOD
|
|
|
|
|
125,659
|
|
|
|
151,793
|
|
Debits (credits) to income that do not represent cash
flows
|
|
|
|
|
(252,061
|
)
|
|
|
(290,860
|
)
|
Depreciation and amortization
|
|
31
|
|
|
26,163
|
|
|
|
19,180
|
|
Impairments of property, plant, and equipment and intangibles
|
|
31
|
|
|
-
|
|
|
|
39
|
|
Provision for loan losses
|
|
28
|
|
|
97,585
|
|
|
|
96,224
|
|
Provision from trading investments mark to market
|
|
|
|
|
7,713
|
|
|
|
1,438
|
|
Income from investments in associates and other companies
|
|
|
|
|
(923
|
)
|
|
|
(825
|
)
|
Net gain on sale of assets received in lieu of payment
|
|
32
|
|
|
(4,896
|
)
|
|
|
(5,945
|
)
|
Provision on assets received in lieu of payment
|
|
32
|
|
|
212
|
|
|
|
446
|
|
Net gain on sale of associates and other companies
|
|
|
|
|
-
|
|
|
|
-
|
|
Net gain on sale of controlled companies
|
|
|
|
|
-
|
|
|
|
-
|
|
Net gain on sale of property, plant, and equipment
|
|
32
|
|
|
(50
|
)
|
|
|
(1
|
)
|
Charge off of assets received in lieu of payment
|
|
32
|
|
|
2,622
|
|
|
|
5,448
|
|
Net interest income
|
|
24
|
|
|
(322,701
|
)
|
|
|
(346,715
|
)
|
Net fee and commission income
|
|
25
|
|
|
(70,675
|
)
|
|
|
(75,494
|
)
|
Other debits (credits) to income that do not represent cash flows
|
|
|
|
|
(3,705
|
)
|
|
|
-
|
|
Changes in deferred taxes
|
|
13
|
|
|
12,933
|
|
|
|
15,345
|
|
Increase/decrease in operating assets and liabilities
|
|
|
|
|
(439,868
|
)
|
|
|
291,442
|
|
(Increase) decrease of loans and accounts receivables from customers, net
|
|
|
|
|
(306,865
|
)
|
|
|
(771,920
|
)
|
(Increase) decrease of financial investments
|
|
|
|
|
(422,488
|
)
|
|
|
(104,717
|
)
|
Decrease (increase) due to resale agreements (assets)
|
|
|
|
|
(5,015
|
)
|
|
|
-
|
|
Decrease (increase) of interbank loans
|
|
|
|
|
(11,349
|
)
|
|
|
153,372
|
|
(Increase) decrease of assets received or awarded in lieu of payment
|
|
|
|
|
38
|
|
|
|
1,431
|
|
Increase (decrease) of debits in customers checking accounts
|
|
|
|
|
(36,080
|
)
|
|
|
232,245
|
|
Increase (decrease) of time deposits and other time liabilities
|
|
|
|
|
(132,116
|
)
|
|
|
54,830
|
|
Increase (decrease) of obligations with domestic banks
|
|
|
|
|
1,280
|
|
|
|
(480
|
)
|
Increase (decrease) of other demand liabilities or time obligations
|
|
|
|
|
(178,994
|
)
|
|
|
175,197
|
|
Increase (decrease) of obligations with foreign banks
|
|
|
|
|
(55,039
|
)
|
|
|
(375,365
|
)
|
Increase (decrease) of obligations with Central Bank of Chile
|
|
|
|
|
(4
|
)
|
|
|
-
|
|
Increase (decrease) of obligations under repurchase agreements
|
|
|
|
|
72,390
|
|
|
|
(162,162
|
)
|
Increase (decrease) in other financial liabilities
|
|
|
|
|
479
|
|
|
|
1,654
|
|
Increase (decrease) of obligation for lease contract
|
|
|
|
|
154,839
|
|
|
|
-
|
|
Net increase of other assets and liabilities
|
|
|
|
|
(409,234
|
)
|
|
|
783,161
|
|
Redemption of letters of credit
|
|
|
|
|
(2,190
|
)
|
|
|
(2,612
|
)
|
Mortgage bond issuances
|
|
|
|
|
-
|
|
|
|
-
|
|
Senior bond issuances
|
|
|
|
|
850,810
|
|
|
|
-
|
|
Redemption mortgage bonds and payments of interest
|
|
|
|
|
(3,046
|
)
|
|
|
(2,589
|
)
|
Redemption and maturity of of senior bonds and payments of interest
|
|
|
|
|
(350,660
|
)
|
|
|
(112,812
|
)
|
Interest received
|
|
|
|
|
460,751
|
|
|
|
528,052
|
|
Interest paid
|
|
|
|
|
(138,050
|
)
|
|
|
(181,337
|
)
|
Dividends received from investments in other companies
|
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions received
|
|
25
|
|
|
121,366
|
|
|
|
124,154
|
|
Fees and commissions paid
|
|
25
|
|
|
(50,691
|
)
|
|
|
(48,660
|
)
|
Total cash flow provided by (used
in) operating activities
|
|
|
|
|
(566,270
|
)
|
|
|
152,375
|
|
The accompanying notes 1 to 35 form an integral part of these
consolidated interim financial statements.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
7
Banco Santander Chile and Subsidiaries
CONSOLIDATED INTERIM STATEMENTS OF CASH
FLOWS
For the periods ended
|
|
|
|
March 31,
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
NOTE
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
B – CASH FLOWS FROM INVESTMENT ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment
|
|
12
|
|
|
(4,110
|
)
|
|
|
(3,506
|
)
|
Sales of property, plant, and equipment
|
|
12
|
|
|
47,107
|
|
|
|
60
|
|
Purchases of investments in associates and other companies
|
|
|
|
|
-
|
|
|
|
-
|
|
Sales of investments in associates and other companies
|
|
|
|
|
-
|
|
|
|
-
|
|
Purchases of intangible assets
|
|
11
|
|
|
(2,731
|
)
|
|
|
(5,064
|
)
|
Total cash flow provided by (used
in) investment activities
|
|
|
|
|
40,266
|
|
|
|
(8,510
|
)
|
|
|
|
|
|
|
|
|
|
|
|
C – CASH FLOW FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
From shareholder´s financing activities
|
|
|
|
|
(4,277
|
)
|
|
|
(4,142
|
)
|
Increase in other obligations
|
|
|
|
|
-
|
|
|
|
-
|
|
Subordinated bonds emisions
|
|
|
|
|
-
|
|
|
|
-
|
|
Redemption of subordinated bonds and payments of interest
|
|
|
|
|
(4,277
|
)
|
|
|
(4,142
|
)
|
Dividends paid
|
|
|
|
|
-
|
|
|
|
-
|
|
From non-controlling interest financing activities
|
|
|
|
|
-
|
|
|
|
-
|
|
Dividends and/or withdrawals paid
|
|
|
|
|
-
|
|
|
|
-
|
|
Total cash flow used in financing
activities
|
|
|
|
|
(4,277
|
)
|
|
|
(4,142
|
)
|
|
|
|
|
|
|
|
|
|
|
|
D – NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS DURING THE PERIOD
|
|
|
|
|
(530,281
|
)
|
|
|
139,723
|
|
|
|
|
|
|
|
|
|
|
|
|
E – EFFECTS OF FOREIGN EXCHANGE RATE FLUCTUATIONS
|
|
|
|
|
(40,355
|
)
|
|
|
(16,852
|
)
|
|
|
|
|
|
|
|
|
|
|
|
F – INITIAL BALANCE OF CASH AND CASH EQUIVALENTS
|
|
5
|
|
|
2,256,155
|
|
|
|
1,634,341
|
|
|
|
|
|
|
|
|
|
|
|
|
FINAL BALANCE OF CASH AND CASH EQUIVALENTS
|
|
5
|
|
|
1,685,519
|
|
|
|
1,757,212
|
|
|
|
|
|
As of March 31,
|
|
Reconciliation of provisions for the Consolidated Interim Statements
|
|
|
|
2019
|
|
|
2018
|
|
of Cash Flows for the periods
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses for cash flow purposes
|
|
|
|
|
97,585
|
|
|
|
96,224
|
|
Recovery of loans previously charged off
|
|
|
|
|
(21,311
|
)
|
|
|
(20,819
|
)
|
Provision for loan losses - net
|
|
28
|
|
|
76,274
|
|
|
|
75,405
|
|
|
|
|
|
|
|
|
|
Changes other than cash
|
|
|
|
|
Reconciliation
of liabilities
arising
from financing activities
|
|
December,
31
2018
MCh$
|
|
|
Cash
Flow
MCh$
|
|
|
Acquisition
MCh$
|
|
|
Foreign
Currency
Movement
MCh$
|
|
|
UF
Movement
MCh$
|
|
|
Fair
Value
Changes
MCh$
|
|
|
March,
31
2019
MCh$
|
|
Subordinated Bonds
|
|
|
795,957
|
|
|
|
(4,247
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
3,563
|
|
|
|
-
|
|
|
|
795,243
|
|
Paid dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total liabilities from financing activities
|
|
|
773,192
|
|
|
|
(4,247
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
3,536
|
|
|
|
-
|
|
|
|
795,243
|
|
The accompanying
notes 1 to 35 form an integral part of these consolidated interim financial statements.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
8
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31, 2018
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 March 31, 2019, 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 Interim 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$”, “U.S. dollars” and “dollars”
are to United States dollars, references to “EUR” are to European Economic Community Euro, references to “CNY”
are to Chinese Yuan, references to “CHF” are to Swiss franc, references to “Chilean pesos”, “pesos”
or “Ch$” 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 Interim
Financial Statements contain additional information to support the figures submitted in the Consolidated Interim Statement of
Financial Position, Consolidated Interim Statement of Income, Consolidated Interim Statement of Comprehensive Income, Consolidated
Interim Statement of Changes in Equity and Consolidated Interim Statement of Cash Flows for the period. These contain narrative
descriptions and details of these statements in a clear, relevant, reliable and comparable manner.
|
b)
|
Basis of preparation
for the Consolidated Interim Financial Statements
|
The Consolidated Interim Financial Statements
as of March 31, 2019 and 2018 and December 31, 2018, include the financial statements from 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:
|
I.
|
has power over the investee (i.e.,
it has rights that grant the current capacity of managing the relevant activities of
the investee)
|
|
II.
|
is exposed, or has rights, to variable returns from its involvement
with the investee; and
|
|
III.
|
has the ability
to use its power to affect its returns.
|
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 listed above.
When the Bank has less than the majority
of the voting rights of an investee, but it will be considered to have the 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, these include:
|
·
|
The size of
the Bank’s holding of voting rights relative to the size and dispersion of holdings
of the other vote holders.
|
|
·
|
The potential
voting rights held by the Bank, other vote holders or other parties.
|
|
·
|
The rights
arising from other contractual agreements.
|
|
·
|
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.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
9
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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 transacctions 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 Interim Statement
of Changes in Equity. Their share in the income for the year is presented as “Attributable to non-controlling interest”
in the Consolidated Interim Statement of Income.
The following companies are considered
entities controlled by the Bank and are therefore within the scope of consolidation:
|
i.
|
Entities controlled
by the Bank through participation in equity
|
|
|
|
|
|
|
Percent ownership share
|
|
|
|
|
|
|
|
As
of March 31,
|
|
|
|
|
|
Place of
|
|
2019
|
|
|
2018
|
|
|
|
|
|
Incorporation
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
Name of the Subsidiary
|
|
Main
Activity
|
|
And
operation
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Corredora de Seguros Limitada
|
|
Insurance brokerage
|
|
Santiago, Chile
|
|
|
99.75
|
|
|
|
0.01
|
|
|
|
99.76
|
|
|
|
99.75
|
|
|
|
0.01
|
|
|
|
99.76
|
|
Santander Corredores de Bolsa Limitada
|
|
Financial instruments brokerage
|
|
Santiago, Chile
|
|
|
50.59
|
|
|
|
0.41
|
|
|
|
51.00
|
|
|
|
50.59
|
|
|
|
0.41
|
|
|
|
51.00
|
|
Santander Agente de Valores Limitada(*)
|
|
Securities brokerage
|
|
Santiago, Chile
|
|
|
99.03
|
|
|
|
-
|
|
|
|
99.03
|
|
|
|
99.03
|
|
|
|
-
|
|
|
|
99.03
|
|
Santander S.A. Sociedad Securitizadora
|
|
Purchase of credits and issuance of debt instruments
|
|
Santiago, Chile
|
|
|
99.64
|
|
|
|
-
|
|
|
|
99.64
|
|
|
|
99.64
|
|
|
|
-
|
|
|
|
99.64
|
|
The details of non-controlling interest in all the subsidiaries
can be seen in Note 23 – Non-controlling interest.
(*) On July 25, 2018, the company has
ceased conducting foreign currency purcharse and sale operations, hence forth this operation will be carried out directly by the
Bank.
|
ii.
|
Entities controlled
by the Bank through other considerations
|
The following companies have been consolidated
as of March 31, 2019 and 2018 and December 31, 2018 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:
|
-
|
Santander Gestión
de Recaudación y Cobranza Limitada (collection services)
|
|
-
|
Bansa Santander
S.A. (management of repossessed assets and leasing of properties)
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
10
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
The following companies are considered
“Associates” in which the Bank accounts for its participation using the equity method:
|
|
|
|
Percentage of ownership
share
|
|
|
|
|
Place of
|
|
As
of March 31,
|
|
|
|
|
|
Incorporation and
|
|
2019
|
|
|
2018
|
|
Associates
|
|
Main activity
|
|
operation
|
|
%
|
|
|
%
|
|
Redbanc S.A. (*)
|
|
ATM services
|
|
Santiago, Chile
|
|
|
33.43
|
|
|
|
33.43
|
|
Transbank S.A. (*)
|
|
Debit and credit card services
|
|
Santiago, Chile
|
|
|
25.00
|
|
|
|
25.00
|
|
Centro de Compensación Automatizado S.A.
|
|
Electronic fund transfer and compensation services
|
|
Santiago, Chile
|
|
|
33.33
|
|
|
|
33.33
|
|
Sociedad Interbancaria de Depósito de Valores
S.A.
|
|
Repository of publically offered securities
|
|
Santiago, Chile
|
|
|
29.29
|
|
|
|
29.29
|
|
Cámara de Compensación de Pagos de Alto Valor S.A.
|
|
Payments clearing
|
|
Santiago, Chile
|
|
|
15.00
|
|
|
|
14.23
|
|
Administrador Financiero del Transantiago S.A.
|
|
Administration of boarding passes to public transportation
|
|
Santiago, Chile
|
|
|
20.00
|
|
|
|
20.00
|
|
Sociedad Nexus S.A. (*)
|
|
Credit card processor
|
|
Santiago, Chile
|
|
|
12.90
|
|
|
|
12.90
|
|
Servicios de Infraestructura de Mercado OTC
S.A.
|
|
Administration of the infrastructure for the financial market of
derivative instruments
|
|
Santiago, Chile
|
|
|
12.07
|
|
|
|
12.07
|
|
(*) During 2018 Banco Santander-Chile,
has granted a mandate to Credicorp Capital to exercise all its political rights as a shareholder.
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.
|
iv.
|
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.
|
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 Interim Statement of Income, and separately from shareholders’ equity in the Consolidated Interim 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.
According to the information presented,
the Bank’s segments were selected based on an operating segment being a component of an entity that:
|
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),
|
|
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,
|
|
iii.
|
for
which discrete financial information is available.
|
The Bank reports separately on each operating
segment that exceeds any of the following quantitative thresholds:
|
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.
|
|
ii.
|
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.
|
|
iii.
|
its assets represent 10% or
more of the combined assets of all the operating segments.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
11
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 Interim Financial Statements.
Information about other business activities
of the segments not separately reported is combined and disclosed in the “Other segments” category.
|
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".
|
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$679.91 per US$1 for March, 2019 (Ch$604.67 per US$1 for March 2018 and Ch$697.76 per US$1 for December, 2018).
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.
|
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.
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. As of March 31, 2019 and 2018 and December 31, 2018, Banco Santander did not keep implicit
derivatives in its portfolio.
|
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 amortised 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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
12
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
Income is recognised 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:
|
-
|
it has been acquired
with the purpose of selling it in the short term; or
|
|
-
|
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
|
|
-
|
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
|
|
-
|
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 recognised in profit or loss. The net gain or loss recognised incorporates
any dividend or interest earned on the financial asset and is included in the ‘net income (expense) from financial operations'
line item.
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 amortised 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 recognised in profit
or loss. Other changes in the carrying amount of available for sale investments are recognised 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 investments revaluation reserve is reclassified to profit
or loss.
Dividends on AFS equity instruments are
recognised 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 recognised in profit or loss are determined based on the amortised cost of the monetary
asset.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
13
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 interbank loans) are measured at amortised
cost using the effective interest method, less any impairment.
Interest income is recognised by applying
the effective interest rate, except for short-term receivables where discounting effects are immaterial.
|
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. If a special item for these operations is not mentioned, they will be included
along with the accounts being reported.
|
|
·
|
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 6.
|
|
·
|
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
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 customers: these loans are non-derivative financial assets
for which fixed or determined amounts are charged, that are not listed on an active market
and which the Bank does not intend to sell immediately or in the short term. When the
Bank is the lessor in a lease, and it substantially transfers the risks and 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 March 31, 2019 and December 31, 2018, the bank does not
possess any financial liabilities FVTPL.
Other financial liabilities
Other financial liabilities (including
loans and accounts payable) are subsequently measured at amortised cost using the effective interest method.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
14
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
v.
|
Classification of financial liabilities for presentation purposes
|
Financial liabilities are classified by
their nature into the following items in the Consolidated Interim 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 (i.e. a liability of the Bank), whether they are for trading or for hedge accounting,
as set forth in Note 6.
|
|
·
|
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 three types of instruments issued by the Bank: obligations
under letters of credit, subordinated bonds and senior bonds placed in the local and
foreign market.
|
|
·
|
Other
financial liabilities: this item includes credit obligations to persons other than domestic
banks, foreign banks, or the Central Bank of Chile, for financing purposes or operations
in the normal course of business.
|
|
h)
|
Valuation of financial 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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
15
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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
Interim 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 Interim 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 March 31, 2019, the CVA and DVA are Ch$ 8,462 million
and Ch$ 14,838 million, respectively.
“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 uncollectibility. 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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
16
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
The main techniques used as of March 31,
2019 and 2018 and as of December 31, 2018 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.
|
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”),
|
|
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 Interim 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 Interim 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 Interim 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.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
17
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
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 Interim 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.
When cash flow hedges are interrupted,
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 Interim 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 Interim 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 Interim 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
Interim 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 Interim 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 Interim 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 Interim Statement of Financial Position for an amount
equal to its exposure to changes in value and a financial liability associated with the
transferred financial
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
18
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
a.
|
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.
|
Accordingly, financial assets are only
derecognized from the Consolidated Interim 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 Interim 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
Interim 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 24). 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 recognised 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 (ie 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 recognises revenue over time, and/or the Bank satisfies
the performance obligation at a point in time.
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 securitie's custody services.
|
|
-
|
Fees
and commissions for insurance brokerage fees: includes income arising for insurances
distribution.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
19
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER 31,
2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
-
|
Other
fees and commissions:includes income arising from currency changes,financial advisory,
cashier check issuance, placement of financial products and onlilne 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 securitie's brokerage.
|
|
-
|
Other
fees and commissions:includes mainly expenses generayed from online services.
|
The Bank has incorporated disaggregated
revenue disclosure and reportable segment relationship in Note 25.
Additionaly, the Bank maintains certain
loyalty programme associated to its credit cards services, for which 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.
A financial asset, other than that at
fair value through profit and loss, is evaluated on each 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
income. Any impairment loss relating to a financial asset available for sale previously recorded in equity is transferred to profit
or loss.
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. its
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.
If the recoverable amount of an asset
is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment
loss is recognized immediately in profit or loss.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
20
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 Interim 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 Interim Financial Statements March 2019 / Banco Santander Chile
21
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
l)
|
Right-of-use assets
and lease liabilities
|
The Bank is party to lease contracts for
offices and branches, all those required to carry out its business activities.
Leases are recognized, measured and presented
in accordance with IFRS 16 “Leases”.
The lease term comprises non-cancelable
period of lease contracts, and typically contains automatic extension, which is not consider in the lease liability since both
parties have a genuine ability to negotiate. Additionally, each party has the right of early termination. For lease contract with
indefinite term the Bank has estimates the length equal to maximum non-cancelable contracts period. The same economic useful life
is apply to determine the depreciation rate of right-of-use assets.
The present value of the lease payment
is determined using the discount rate representing the incremental borrowing rate at the date when lease contract commences or
is modify.
The Bank has elected to apply IFRS 16
using the modified retrospective approach, and does not restate comparative figures. Thus, disclosures related to prior year were
prepared under IAS 17 Leases.
According to the above, the Bank has elected
to recognize a lease liability at the date of initial application, as the present value of the remaining lease payments, discounted
using the lessee’s incremental borrowing rate at the date of initial application, and the right-of-use, for an amount equal
to the lease liability.
At initial measurement, the Bank measures
the right-of-use asset at cost. The rent of these leases are according in UF, and payable in Chilean pesos.
The Bank has decided not to apply the
new guidance to leases whose term will end within 12 months of the date of initial application. In those cases, the leases are
accounted for as short-term leases, and the lease payments associated with them will be recognised as an expense from short-term
leases.
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 Interim Statement of Financial Position.
When a consolidated entity is a lessee,
it reports the cost of leased assets in the Consolidated Interim 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 Interim 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 Interim 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 Interim Statement of Income.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
22
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
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 in the Consolidated Interim 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.
Expenditure on research activities is
recorded as an expense in the year in which it is incurred and cannot be subsequently capitalized.
|
p)
|
Cash and cash equivalents
|
The indirect method is used to prepare
the 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.
|
|
q)
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
23
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 N°3,573 (modified by Circular N°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.
|
|
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.
|
|
Debtor’s
|
|
Probability of
|
|
|
|
|
|
|
|
Portfolio
|
|
Category
|
|
Non-Performance (%)
|
|
|
Severity (%)
|
|
|
Expected Loss (%)
|
|
|
|
A1
|
|
|
0.04
|
|
|
|
90.0
|
|
|
|
0.03600
|
|
|
|
A2
|
|
|
0.10
|
|
|
|
82.5
|
|
|
|
0.08250
|
|
Normal Portfolio
|
|
A3
|
|
|
0.25
|
|
|
|
87.5
|
|
|
|
0.21875
|
|
|
|
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
|
|
Substandard Portfolio
|
|
B2
|
|
|
22.00
|
|
|
|
92.5
|
|
|
|
20.35000
|
|
|
|
B3
|
|
|
33.00
|
|
|
|
97.5
|
|
|
|
32.17500
|
|
|
|
B4
|
|
|
45.00
|
|
|
|
97.5
|
|
|
|
43.87500
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
24
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 assimilable 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.
The allowance rates applied over the calculated
exposure are as follows:
Classification
|
|
Estimated 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. 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;
|
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
25
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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.
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
26
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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. 10 of Chapter B-1 from
the SBIF Compendium of Accounting Standards, these provisions will be recorded in liabilities, similar to provisions for contingent
loans.
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 Interim 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-1 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 Interim Statement of Income.
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 provisons in the
Consolidated Interim 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.
|
r)
|
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
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
27
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
|
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
|
|
s)
|
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.
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 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 Interim 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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
28
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
These estimates are based on the best
available information and mainly refer to:
|
-
|
Allowances
for loan losses (Notes 8, 9, and 28)
|
|
-
|
Impairment
losses of certain assets (Notes 7, 8, 9, 10, and 31)
|
|
-
|
The
useful lives of tangible and intangible assets (Notes 11, 12 and 31)
|
|
-
|
The
fair value of assets and liabilities (Notes 6, 7, 10 and 34)
|
|
-
|
Commitments
and contingencies (Note 20)
|
|
-
|
Current
and deferred taxes (Note 13)
|
|
u)
|
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.
As of March 31, 2019 and December 31,
2018, the bank has not qualified any non-current assets as held for sale.
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 Interim 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. On December 31, 2018 the average selling cost has been estimated at 3.4% of the appraisal
value (5.1% for December 31, 2016).
Independent appraisals are obtained at
least every 18 months and fair values are adjusted accordingly.
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 March 31, 2019 and December 31,
2018, 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”).
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
29
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 Interim Statement of Financial Position. Management fees are included in “Fee and commission
income” in the Consolidated Interim Statement of Income.
|
y)
|
Provision for mandatory
dividends
|
As of March 31, 2019 and December 31,
2018, 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
mixed 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.
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
30
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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 fices 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
Interim 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 SBIF
|
Circular N ° 3,645 - Leases in
accordance with IFRS 16. Modifies and complements the Compendium of Accounting Standards. Chapters A- 2, B-1, C-1 and C-3 -
On
January 11, 2019, the SBIF issued this circular with the purpose of clarifying the way in which banks must apply the criteria
defined in the International Information Standard. Financial N ° 16 (IFRS 16). Detailing the changes in the statement of financial
position and income statement, and notes.
These modifications are applicable as
of January 2019. The Administration made the necessary adjustments to comply with this requirement in a timely manner, and there
are no relevant situations that indicate otherwise.
|
2.
|
Accounting Standards
issued by the International Accounting Standards Board
|
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. The Administration carried out an implementation process during the year 2018, which culminated successfully with the
application as of January 1, 2019, using the modified retrospective method, this means that At the date of initial application,
the right-of-use asset is equal to the financial liability, and in addition it has been chosen not to restate the balances of
the previous year, for more information see related accounting policies and Note 02 of accounting changes.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
31
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
IFRIC 23 Uncertainty about the treatment
of income tax -
This interpretation issued on June 7, 2017 clarifies the accounting for tax uncertainties, which applies to
the determination of taxable income, tax base, tax losses and unused credits, when there is an uncertainty about the treatment
according to IAS 12 "Income Tax". This standard covers four points: (a) If an entity considers tax uncertainties individually
or together, (b) The assumptions that an entity makes about the tax treatment review established by the tax authority, (c) As
an entity determines the taxable profit (or loss), the tax base, tax loss and unused credits and tax rates, and (d) How an entity
considers changes in facts and circumstances.
This interpretation is effective for annual
periods beginning on or after January 1, 2019. Early application is permitted. Management has assessed that the implementation
of this interpretation has not had a material impact on the Bank's consolidated financial statements.
Amendment to IAS 28 Long-Term Participations
in Associates and Joint Ventures
- On October 12, 2017 the IASB published this amendment to clarify that an entity would also
apply IFRS 9 to a long-term participation in an associate or joint venture to which the participation method does not apply. When
applying IFRS 9, the adjustments of the long-term interests that arise from the application of this Standard will not be taken
into account.
This amendment is effective retroactively
in accordance with IAS 8 to annual periods beginning on or after January 1, 2019. Management has assessed that the implementation
of this amendment has not had a material impact on the Consolidated Interim Financial Statements. from the bank.
Annual Improvements, cycle 2015-2017
- This amendment published on December 12, 2017 introduces the following improvements:
IFRS 3 Business Combinations / IFRS
11 Joint Agreements:
deals with the prior interest in a joint operation, as a business combination in stages.
IAS 12 Income
Tax:
deals with the consequences in income tax of payments of financial instruments classified as equity.
IAS 23 Loan costs:
deals with the eligible costs for capitalization.
This amendment is effective for annual
periods beginning on or after January 1, 2019. Management has assessed that the implementation of these amendments has not had
a material impact on the Bank's consolidated financial statements.
Amendment IAS 19 - Modification, reduction
or liquidation of pension plans - This
amendment issued on February 7, 2018 introduces the following modifications:
1. If a modification, reduction or liquidation
of a plan occurs, it is now mandatory that the current service cost and the net interest for the period subsequent to the new
measurement be determined using the assumptions used for the new measurement.
2. In addition, amendments have been included
to clarify the effect of a modification, reduction or liquidation of a plan on the requirements with respect to the asset's ceiling.
An entity applies these amendments on
or after January 1, 2019. Early application is allowed, but must be disclosed. Management has assessed that the implementation
of these amendments has not had a material impact on the Bank's consolidated financial statements.
|
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 March 31, 2019
|
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 March 31, 2019. 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 N ° 3,638 - Establishes
standard method of provisions for commercial loans of the group portfolio
- On July 6, 2018 the SBIF issued this circular
that establishes the standard methods that must be used by banking entities to estimate provisions for risk of credit of the commercial
portfolio of group analysis, which will be incorporated into Chapter B-1 of the Compendium of Accounting Standards.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
32
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
·
Method
for the Commercial Leasing portfolio:
it considers the delinquency, the type of asset in leasing (real estate or non-real
estate) and the current value over value of the asset (PVB) of the operation.
·
Method
for the Student portfolio:
it considers the type of loan granted (whether it is CAE or not), the enforceability of the payment
and the delinquency that it presents, in case the loan is required.
·
Method
for the Commercial Generic portfolio:
considers delinquency and the existence of real guarantees that guarantee the placement.
In the case of mediating guarantees, the relationship between the placement and the value of the collateral that covers it is
considered.
The use of the standard method to establish
provisions on credits of the group commercial portfolio, will be mandatory as of July 1, 2019, while the accounting effects of
first application should be considered as a change in an accounting estimate according to IAS 8 , and therefore, register in results.
The Administration is working on the implementation of these modifications, and there are no relevant situations to date that
indicate otherwise.
Circular N ° 3.647 - Standard method
of provisions for commercial loans of the group portfolio. Complements instructions on factoring operations, Chapter B-1 of the
Compendium of Accounting Standards
- On January 31, 2019 the SBIF issued this circular with the purpose of recognizing the
mitigating effect of the credit risk represented by the assignor's responsibility in the operations of factoring, for this it
has been considered necessary to introduce a particular factor in the component "Loss Given Default" (PDI) of the standard
method for the commercial portfolio of group analysis, which must be considered for the calculation of provisions of said operations,
as provided in Chapter B-1 of the Compendium of Accounting Standards.
This amendment does not alter the effective
date of the standard method of provisions for commercial loans of the group portfolio established in Circular No. 3,638, which
is mandatory as of July 1, 2019. The Administration will make the necessary adjustments to comply with this requirement in a timely
manner, there being no relevant situations that indicate otherwise.
|
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.
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
33
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
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.
Amendments to IFRS 10 and IAS 28 -
Sale and Contribution of Assets between an Investor and its Associate or Joint Venture
- On September 11, 2014, the IASB published
this amendment, which clarifies the scope of the gains and losses recognized in a transaction that involves to an associate or
joint venture, and that this depends on whether the asset sold or contribution constitutes a business. Therefore, the IASB concluded
that all of the gains or losses should be recognized against the loss of control of a business. Likewise, profits or losses resulting
from the sale or contribution of a non-business subsidiary (IFRS 3 definition) to an associate or joint venture must be recognized
only to the extent of unrelated interests in the associate or business set.
This standard was initially effective
as of January 1, 2016, however, on December 17, 2015 the IASB issued "Effective Date of Amendment to IFRS 10 and IAS 28"
indefinitely postponing the entry into force of this standard. The Administration will be waiting for the new validity to evaluate
the potential effects of this modification.
IFRS 17 Insurance contracts -
This
regulation issued on May 18, 2017, establishes principles for the recognition, measurement, presentation and disclosure of the
insurance contracts issued. It also requires similar principles to apply to maintained reinsurance contracts and to investment
contracts issued with discretionary participation components. IFRS 17 repeals IFRS 4 Insurance Contracts.
IFRS 17 will apply to annual periods beginning
on or after January 1, 2021. Early application is permitted. This standard does not apply directly to the Bank, however, the Bank
has a participation in insurance business and it will be ensured that this regulation is applied correctly and in a timely manner
.
Conceptual framework for financial
reporting 2018 -
This framework was issued on March 29, 2018, and its purpose is to: (a) assist the IASB in the development
of IFRS regulations on a consistent basis of concepts, (b) assist preparers in the development of consistent accounting policies
when there is no standard that applies to a particular transaction or other event, or when a standard allows a series of accounting
policies; and (c) assist the parties in the understanding and interpretation of the regulations.
The revised framework includes a new chapter
on measurement, guidelines for reporting financial performance, improvements to definition and guidance, and clarifications of
important issues (for example: management functions, prudence and measurement of uncertainties in financial reporting).
The IASB also included an amendment that
updates references to the framework in certain standards. These amendments are effective for annual periods beginning on January
1, 2020. Bank Management is evaluating the potential impact of this modification.
Amendments to IFRS 3 - Definition of
a business
- On October 22, 2018, the IASB published this amendment, which clarifies the business definition, with the objective
of helping entities determine whether a transaction should be accounted for as a business combination. or as the acquisition of
an asset. The modifications:
(a) clarify that, to be considered
a business, an acquired set of activities and assets must include, as a minimum, an input and a substantive process that together
contribute significantly to the ability to produce products;
(b) eliminate the evaluation of whether
market participants can replace the missing processes or supplies and continue with the production of products;
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
34
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial
Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
continued
(c) add guides and illustrative examples
to help entities assess whether a substantial process has been acquired;
(d) restrict the definitions of a
business or products focusing on goods and services provided to customers and eliminate the reference to the ability to reduce
costs; Y
(e) they add an optional concentration
test that allows a simplified evaluation of whether a set of activities and businesses acquired is not a business.
Entities are required to apply the amendments
to transactions whose acquisition date is from the beginning of the first annual reporting period beginning on or after January
1, 2020. Early application is permitted. The Administration does not initially see an effect until a business combination is made.
Modifications to IAS 1 and IAS 8 -
Definition of material or materiality
- On October 31, 2019, the IASB published these amendments, whose objective is to improve
the understanding of the definition of material or with relative importance, coordinating the wording of the definition in the
IFRS Standards and the Conceptual Framework to avoid the possibility of confusion arising from different definitions; incorporating
support requirements in IAS 1 in the definition to give them more prominence and clarify their applicability; and supplying the
existing guides on the definition of material or with relative importance in one place, together with the definition.
This amendment primarily affects paragraph
7 of IAS 1, paragraph 5 of IAS 8, and eliminates paragraph 6 of IAS 8, and is applicable prospectively to annual periods beginning
on or after January 1, 2020. . Permit your anticipate app. The Bank's Administration is evaluating the potential impact of this
modification.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
35
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 02
ACCOUNTING CHANGES
IFRS 15:
Starting on January 1, 2018, IFRS 15;
revenues from contracts with customers has become effective. In accordance with the Bank activities, income and expenses arising
from fees and commission are under the scope of this new standard. Consequently a high deeply review of the fees and comission
has been performed, to ensure the five step approach are fully met.
The Bank has ellected to apply retrospectively
with the cumulative effect recognised at the date of initial application method, this method allow not to restate prior compare
period.
The Bank concludes that there are not
quantitative effects, however new disclosure requirements must be adopted. See Note 1 and Note 25.
IFRS 16:
On January 1, 2019, IFRS 16 Leases has
become effective; this standard sets out the principles for the recognition, measurement, presentation and disclosure of leases.
The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully
represents those transactions. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and
liabilities for all leases with a term of more than 12 months, thus a lessee is required to recognise a right-of-use asset representing
its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments.
IFRS 16 supersedes IAS 17 Leases, IFRIC
4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases—Incentives and SIC-27 Evaluating the Substance
of Transactions Involving the Legal Form of a Lease.
The Bank has elected to adopt IFRS 16
using a modified retrospective approach at the date of initial application, therefore, it has recognise a right-of-use asset for
an amount equal to the lease liability, which amounted MCh$154,284.
For more details, see Note 12.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
36
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 03
SIGNIFICANT EVENTS
As of March 31, 2019, the following significant
events have occurred and affected the Bank’s operations and Consolidated Interim Financial Statements.
a) Bylaws and The Board
During the ordinary session of the Board
of Directors of Banco Santander-Chile, held on February 28, 2019, it was agreed to propose to the Ordinary Shareholders' Meeting
that it will cite by April 23, 2019, a dividend of $ 1.88457837 per share, corresponding 60% of the profits for the 2018 fiscal
year. Likewise, the board will propose that the remaining 40% of the profits be used to increase the Bank's reserves.
During the ordinary session of the Board
of Directors of Banco Santander-Chile, held on March 26, 2019, the following matters were agreed:
|
-
|
On the occasion
of the resignation of the Director Mr. Andreu Plaza López, the Board of Directors
of the Bank has appointed Mr. Rodrigo Echenique Gordillo as its Regular Director in his
replacement.
|
|
-
|
It was agreed
to subscribe a principle in agreement with SKBergé S.A., by which the acquisition
by the Bank of SKBergé Financing S.A. of the shares owned and representing 49%
of the capital stock of Santander Consumer Chile S.A., in the total value of $ 59,063,470,000
million.
|
b) Issuance and repurchase of bank
bonds
b.1) Senior bonds
As of March 31, 2019, the Bank has issued
current bonds for EUR 30,000,000 and CHF 150,000,000. The detail of the placements made during the current year is included in
Note N ° 16.
Series
|
|
Currency
|
|
Term
(years)
|
|
|
Issuance rate
(Annual)
|
|
|
Issue date
|
|
Amount
|
|
|
Maturity date
|
EUR
|
|
EUR
|
|
7
|
|
|
|
1.09
|
%
|
|
02-01-2019
|
|
|
30,000,000
|
|
|
02-07-2026
|
Total
|
|
EUR
|
|
|
|
|
|
|
|
|
|
|
|
30,000,000
|
|
|
|
CHF
|
|
CHF
|
|
5.6
|
|
|
|
0.38
|
%
|
|
03-12-2019
|
|
|
150,000,000
|
|
|
09-27-2024
|
Total
|
|
CHF
|
|
|
|
|
|
|
|
|
|
|
|
150,000,000
|
|
|
|
b.2) Subordinated bonds
As of March 2019, the Bank has not issued
subordinated bonds.
b.3) Mortgage bonds
As of March 2019, the Bank has not issued
mortgage bonds.
b.4) Repurchased bonds
Durin the first trimester of 2019 the Bank has repurchased
the following bonds:
Fecha
|
|
Tipo
|
|
Moneda
|
|
Monto
|
|
02-12-2019
|
|
Senior
|
|
CLP
|
|
|
10,000,000,000
|
|
02-14-2019
|
|
Senior
|
|
CLP
|
|
|
30,000,000,000
|
|
02-19-2019
|
|
Senior
|
|
CLP
|
|
|
4,200,000,000
|
|
02-22-2019
|
|
Senior
|
|
CLP
|
|
|
14,240,000,000
|
|
03-01-2019
|
|
Senior
|
|
CLP
|
|
|
11,800,000,000
|
|
03-04-2019
|
|
Senior
|
|
CLP
|
|
|
40,080,000,000
|
|
03-05-2019
|
|
Senior
|
|
CLP
|
|
|
20,000,000,000
|
|
03-15-2019
|
|
Senior
|
|
UF
|
|
|
156,000
|
|
03-19-2019
|
|
Senior
|
|
UF
|
|
|
418,000
|
|
03-20-2019
|
|
Senior
|
|
CLP
|
|
|
6,710,000,000
|
|
03-20-2019
|
|
Senior
|
|
UF
|
|
|
154,000
|
|
03-21-2019
|
|
Senior
|
|
UF
|
|
|
100,000
|
|
03-25-2019
|
|
Senior
|
|
UF
|
|
|
100,000
|
|
03-26-2019
|
|
Senior
|
|
UF
|
|
|
90,000
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
37
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
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 a re 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 March 31, 2019. Regarding the information
corresponding to the year 2018, it has been prepared with the current criteria at the closing of these financial statements in
order to achieve the duecomparability of the figures.
The Bank has the reportable segments noted below:
Retail Banking
Consists of individuals and small to middle-sized
entities (SMEs) 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 SME 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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
38
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 04
REPORTING SEGMENTS, continued
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.
Below are the tables showing the Bank’s
results by business segment, for the periods ending as of March 31, 2019 and 2018:
|
|
March 31,
2019
|
|
|
|
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
|
|
|
20,983,054
|
|
|
|
230,796
|
|
|
|
57,166
|
|
|
|
5,879
|
|
|
|
(68,263
|
)
|
|
|
(137,707
|
)
|
|
|
87,871
|
|
Middle-market
|
|
|
7,885,255
|
|
|
|
68,939
|
|
|
|
9,914
|
|
|
|
4,279
|
|
|
|
(10,095
|
)
|
|
|
(22,756
|
)
|
|
|
50,281
|
|
Commercial Banking
|
|
|
28,868,309
|
|
|
|
299,735
|
|
|
|
67,080
|
|
|
|
10,158
|
|
|
|
(78,358
|
)
|
|
|
(160,463
|
)
|
|
|
138,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Corporate Banking
|
|
|
1,590,697
|
|
|
|
22,398
|
|
|
|
7,584
|
|
|
|
19,250
|
|
|
|
(318
|
)
|
|
|
(17,196
|
)
|
|
|
31,718
|
|
Other
|
|
|
141,254
|
|
|
|
568
|
|
|
|
(3,989
|
)
|
|
|
9,437
|
|
|
|
2,402
|
|
|
|
(2,397
|
)
|
|
|
6,021
|
|
Total
|
|
|
30,600,260
|
|
|
|
322,701
|
|
|
|
70,675
|
|
|
|
38,845
|
|
|
|
(76,274
|
)
|
|
|
(180,056
|
)
|
|
|
175,891
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,156
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,165
|
)
|
Income from investments in associates and other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
923
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42,146
|
)
|
Net income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125,659
|
|
(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.
|
|
March 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
|
|
|
19,380,964
|
|
|
|
233,150
|
|
|
|
59,178
|
|
|
|
5,051
|
|
|
|
(74,062
|
)
|
|
|
(131,152
|
)
|
|
|
92,165
|
|
Middle-market
|
|
|
6,975,218
|
|
|
|
65,829
|
|
|
|
9,081
|
|
|
|
3,115
|
|
|
|
(2,019
|
)
|
|
|
(21,630
|
)
|
|
|
54,376
|
|
Commercial Banking
|
|
|
26,356,182
|
|
|
|
298,979
|
|
|
|
68,259
|
|
|
|
8,166
|
|
|
|
(76,081
|
)
|
|
|
(152,782
|
)
|
|
|
146,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Corporate Banking
|
|
|
1,886,261
|
|
|
|
23,644
|
|
|
|
10,495
|
|
|
|
7,538
|
|
|
|
(162
|
)
|
|
|
(14,550
|
)
|
|
|
26,965
|
|
Other
|
|
|
101,951
|
|
|
|
24,092
|
|
|
|
(3,260
|
)
|
|
|
7,517
|
|
|
|
838
|
|
|
|
(3,519
|
)
|
|
|
25,668
|
|
Total
|
|
|
28,344,394
|
|
|
|
346,715
|
|
|
|
75,494
|
|
|
|
23,221
|
|
|
|
(75,405
|
)
|
|
|
(170,851
|
)
|
|
|
199,174
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,307
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,960
|
)
|
Income from investments in associates and other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
825
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(44,553
|
)
|
Net income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151,793
|
|
(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 Interim Financial Statements March 2019 / Banco Santander Chile
39
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 05
CASH AND CASH EQUIVALENTS
|
a)
|
The detail
of the balances included under cash and cash equivalents is as follows:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Cash and deposit in banks
|
|
|
|
|
|
|
|
|
Cash
|
|
|
627,810
|
|
|
|
824,863
|
|
Deposit in the Central Bank of Chile
|
|
|
815,931
|
|
|
|
953,016
|
|
Deposit in domestic banks
|
|
|
532
|
|
|
|
664
|
|
Deposit in foreign banks
|
|
|
106,325
|
|
|
|
286,898
|
|
Subtotal
|
|
|
1,550,598
|
|
|
|
2,065,441
|
|
|
|
|
|
|
|
|
|
|
Cash in process of collection, net
|
|
|
134,921
|
|
|
|
190,714
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
1,685,519
|
|
|
|
2,256,155
|
|
The balance of funds held in cash and
at 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
abread, usually within the next 24 or 48 working hours to each end of period. These operations are as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Assets
|
|
|
|
|
|
|
Documents held by other banks (document to be cleared)
|
|
|
155,261
|
|
|
|
210,546
|
|
Funds receivable
|
|
|
255,355
|
|
|
|
143,211
|
|
Subtotal
|
|
|
410,616
|
|
|
|
353,757
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Funds payable
|
|
|
275,695
|
|
|
|
163,043
|
|
Subtotal
|
|
|
275,695
|
|
|
|
163,043
|
|
|
|
|
|
|
|
|
|
|
Cash in process of collection, net
|
|
|
134,921
|
|
|
|
190,714
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
40
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 06
TRADING INVESTMENTS
The detail of instruments deemed as financial trading investments
is as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Chilean Central Bank and Government securities
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
3,045
|
|
|
|
22,947
|
|
Chilean Central Bank Notes
|
|
|
-
|
|
|
|
-
|
|
Other Chilean Central Bank and Government securities
|
|
|
61,319
|
|
|
|
48,211
|
|
Subtotal
|
|
|
64,364
|
|
|
|
71,158
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
30,444
|
|
|
|
-
|
|
Other foreign financial instruments
|
|
|
-
|
|
|
|
5,883
|
|
Subtotal
|
|
|
30,444
|
|
|
|
5,883
|
|
|
|
|
|
|
|
|
|
|
Investments in mutual funds
|
|
|
|
|
|
|
|
|
Funds managed by related entities
|
|
|
-
|
|
|
|
-
|
|
Funds managed by third parties
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
94,808
|
|
|
|
77,041
|
|
As of March 31, 2019 and December 31,
2017, there were no trading investments sold under contracts to resell to clients and financial institutions.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
41
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
|
a)
|
As of March
31, 2019 and December 31, 2018, the Bank holds the following portfolio of derivative
instruments:
|
|
|
As of March 31, 2019
|
|
|
|
Notional amount
|
|
|
Fair value
|
|
|
|
Up
to 3
Months
|
|
|
More
than 3
months
to
1
year
|
|
|
More
than
1
year
|
|
|
Total
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Fair value hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest rate swaps
|
|
|
129,000
|
|
|
|
821,970
|
|
|
|
981,638
|
|
|
|
1,932,608
|
|
|
|
16,923
|
|
|
|
15,938
|
|
Cross currency swaps
|
|
|
489,530
|
|
|
|
998,212
|
|
|
|
6,747,945
|
|
|
|
8,235,687
|
|
|
|
95,660
|
|
|
|
58,044
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
618,530
|
|
|
|
1,820,182
|
|
|
|
7,729,583
|
|
|
|
10,168,295
|
|
|
|
112,583
|
|
|
|
73,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
168,151
|
|
|
|
-
|
|
|
|
-
|
|
|
|
168,151
|
|
|
|
-
|
|
|
|
1,296
|
|
Interest rate swaps
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Cross currency swaps
|
|
|
327,553
|
|
|
|
4,118,252
|
|
|
|
8,785,441
|
|
|
|
13,231,246
|
|
|
|
73,923
|
|
|
|
29,192
|
|
Call currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Put currency options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
495,704
|
|
|
|
4,118,252
|
|
|
|
8,785,441
|
|
|
|
13,399,397
|
|
|
|
73,923
|
|
|
|
30,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
13,725,408
|
|
|
|
14,910,247
|
|
|
|
6,010,729
|
|
|
|
34,646,384
|
|
|
|
414,693
|
|
|
|
326,620
|
|
Interest rate swaps
|
|
|
9,901,953
|
|
|
|
23,779,912
|
|
|
|
75,344,336
|
|
|
|
109,026,201
|
|
|
|
867,332
|
|
|
|
738,352
|
|
Cross currency swaps
|
|
|
1,101,278
|
|
|
|
14,525,576
|
|
|
|
71,260,110
|
|
|
|
86,886,964
|
|
|
|
1,512,066
|
|
|
|
1,375,014
|
|
Call currency options
|
|
|
60,764
|
|
|
|
22,799
|
|
|
|
74,504
|
|
|
|
158,067
|
|
|
|
2,529
|
|
|
|
724
|
|
Call interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Put currency options
|
|
|
67,258
|
|
|
|
19,836
|
|
|
|
73,375
|
|
|
|
160,469
|
|
|
|
104
|
|
|
|
1,161
|
|
Put interest rate options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest rate futures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
24,856,661
|
|
|
|
53,258,370
|
|
|
|
152,763,054
|
|
|
|
230,878,085
|
|
|
|
2,796,724
|
|
|
|
2,441,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
25,970,895
|
|
|
|
59,196,804
|
|
|
|
169,278,078
|
|
|
|
254,445,777
|
|
|
|
2,983,230
|
|
|
|
2,546,341
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
42
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
|
|
As of December 31, 2018
|
|
|
|
Notional amount
|
|
|
Fair value
|
|
|
|
Up
to 3
months
|
|
|
More
than 3
months
to
1
year
|
|
|
More
than
1
year
|
|
|
Total
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Fair value hedge derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency forwards
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest rate swaps
|
|
|
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
|
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
43
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING, continued
The hedged items and hedge instruments
under fair value hedges as of March 31, 2019 and December 31, 2018, classified by term to maturity are as follows:
|
|
Within 1 year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credits and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
871,892
|
|
|
|
1,070,705
|
|
|
|
260,246
|
|
|
|
603,818
|
|
|
|
2,806,661
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yankee bond
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
167,670
|
|
|
|
167,670
|
|
Mortgage finance bonds
|
|
|
-
|
|
|
|
3,512
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,512
|
|
American treasury bonds
|
|
|
-
|
|
|
|
67,991
|
|
|
|
33,996
|
|
|
|
135,982
|
|
|
|
237,969
|
|
Chilean General treasury bonds
|
|
|
-
|
|
|
|
304,818
|
|
|
|
-
|
|
|
|
51,000
|
|
|
|
355,818
|
|
Central bank bonds (BCP)
|
|
|
-
|
|
|
|
449,729
|
|
|
|
-
|
|
|
|
-
|
|
|
|
449,729
|
|
Time deposits and other demand liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
805,383
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
805,383
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds
|
|
|
761,437
|
|
|
|
1,007,825
|
|
|
|
1,415,581
|
|
|
|
2,156,710
|
|
|
|
5,341,553
|
|
Subordinated bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Obligations with Banks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
2,438,712
|
|
|
|
2,904,580
|
|
|
|
1,709,823
|
|
|
|
3,115,180
|
|
|
|
10,168,295
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
1,487,742
|
|
|
|
2,586,590
|
|
|
|
1,400,828
|
|
|
|
2,760,527
|
|
|
|
8,235,687
|
|
Interest rate swaps
|
|
|
950,970
|
|
|
|
317,990
|
|
|
|
308,995
|
|
|
|
354,653
|
|
|
|
1,932,608
|
|
Total
|
|
|
2,438,712
|
|
|
|
2,904,580
|
|
|
|
1,709,823
|
|
|
|
3,115,180
|
|
|
|
10,168,295
|
|
|
|
Within 1 year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
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
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
44
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
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 March 31, 2019 and December 31, 2017, and the periods when the cash flows will be generated are as follows:
|
|
Within 1 year
|
|
|
Between
1 and 3
years
|
|
|
Between
3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables from customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan
|
|
|
1,468,897
|
|
|
|
2,317,471
|
|
|
|
1,135,984
|
|
|
|
2,467,089
|
|
|
|
7,389,441
|
|
Commercial loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits (ASI)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Yankee bond
|
|
|
-
|
|
|
|
50,030
|
|
|
|
196,275
|
|
|
|
-
|
|
|
|
246,305
|
|
Chilean Central Bank bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
166,628
|
|
|
|
-
|
|
|
|
166,628
|
|
Time deposits and other time liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior bonds (variable rate)
|
|
|
-
|
|
|
|
658,165
|
|
|
|
-
|
|
|
|
-
|
|
|
|
658,165
|
|
Senior bonds (fixed rate)
|
|
|
498,523
|
|
|
|
473,007
|
|
|
|
645,544
|
|
|
|
540,855
|
|
|
|
2,157,929
|
|
Interbank borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
2,646,536
|
|
|
|
134,393
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,780,929
|
|
Total
|
|
|
4,613,956
|
|
|
|
3,633,066
|
|
|
|
2,144,431
|
|
|
|
3,007,944
|
|
|
|
13,399,397
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps
|
|
|
4,445,805
|
|
|
|
3,633,066
|
|
|
|
2,144,431
|
|
|
|
3,007,944
|
|
|
|
13,231,246
|
|
Currency forwards
|
|
|
168,151
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
168,151
|
|
Total
|
|
|
4,613,956
|
|
|
|
3,633,066
|
|
|
|
2,144,431
|
|
|
|
3,007,944
|
|
|
|
13,399,397
|
|
|
|
Within 1 year
|
|
|
Between
1 and 3
years
|
|
|
Between
3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of December 31, 2018
|
|
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
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
45
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
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:
|
|
Within
1
year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
155,936
|
|
|
|
68,725
|
|
|
|
12,886
|
|
|
|
3,125
|
|
|
|
240,672
|
|
Outflows
|
|
|
(90,500
|
)
|
|
|
(44,524
|
)
|
|
|
(2,633
|
)
|
|
|
(2,030
|
)
|
|
|
(139,687
|
)
|
Net flows
|
|
|
65,436
|
|
|
|
24,201
|
|
|
|
10,253
|
|
|
|
1,095
|
|
|
|
100,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
90,500
|
|
|
|
44,524
|
|
|
|
2,633
|
|
|
|
2,030
|
|
|
|
139,687
|
|
Outflows (*)
|
|
|
(155,936
|
)
|
|
|
(68,725
|
)
|
|
|
(12,886
|
)
|
|
|
(3,125
|
)
|
|
|
(240,672
|
)
|
Net flows
|
|
|
(65,436
|
)
|
|
|
(24,201
|
)
|
|
|
(10,253
|
)
|
|
|
(1,095
|
)
|
|
|
(100,985
|
)
|
(*) Only includes cash flow forecast portion of
the hedge instruments used to cover interest rate risk.
|
|
Within
1
year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of December 31, 2018
|
|
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.
b.2) Forecasted cash flows for inflation
risk:
|
|
Within
1
year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Hedged item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
8,986
|
|
|
|
78,600
|
|
|
|
170,762
|
|
|
|
318,637
|
|
|
|
576,985
|
|
Outflows
|
|
|
(8,528
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,528
|
)
|
Net flows
|
|
|
458
|
|
|
|
78,600
|
|
|
|
170,762
|
|
|
|
318,637
|
|
|
|
568,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging instrument
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflows
|
|
|
8,528
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,528
|
|
Outflows
|
|
|
(8,986
|
)
|
|
|
(78,600
|
)
|
|
|
(170,762
|
)
|
|
|
(318,637
|
)
|
|
|
(576,985
|
)
|
Net flows
|
|
|
(458
|
)
|
|
|
(78,600
|
)
|
|
|
(170,762
|
)
|
|
|
(318,637
|
)
|
|
|
(568,457
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
46
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 07
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGE ACCOUNTING, continued
|
|
Within
1
year
|
|
|
Between 1 and 3
years
|
|
|
Between 3 and 6
years
|
|
|
Over 6 years
|
|
|
Total
|
|
As of December 31, 2018
|
|
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
|
)
|
b.3) Forecasted cash flows for exchange rate risk:
As of March
31, 2019 and December 31, 2018, the Bank did not have cash flow hedges for exchange rate risk.
|
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 Other comprehensive income as of March 31, 2019 and December 31, 2017, and is
as follows:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Hedged item
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Interbank loans
|
|
|
(4,167
|
)
|
|
|
601
|
|
Time deposits and other time liabilities
|
|
|
-
|
|
|
|
(307
|
)
|
Issued debt instruments
|
|
|
(12,487
|
)
|
|
|
358
|
|
Available for sale investments
|
|
|
(1,817
|
)
|
|
|
(1,042
|
)
|
Loans and accounts receivable from customers
|
|
|
10,977
|
)
|
|
|
(10,294
|
)
|
Net flows
|
|
|
(7,494
|
)
|
|
|
(10,684
|
)
|
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.
As of March 31, 2019 and 2017 due to inneficiencies
Ch$372 million and Ch$687 million were transferred to profit/loss respectively.
During the year, the bank did not have
any cash flow hedges of forecast transactions.
|
d)
|
Below is a presentation of income generated
by cash flow hedges amount that were reclassified from other comprehensive income to
income for the year:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Bond hedging derivatives
|
|
|
-
|
|
|
|
-
|
|
Interbank loans hedging derivatives
|
|
|
(222
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge net income
|
|
|
(222
|
)
|
|
|
-
|
|
|
e)
|
Net investment hedges
in foreign operations:
|
As of March 31, 2019
and December 31, 2018, the Bank does not have any net foreign investment hedges in its hedge accounting portfolio.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
47
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 08
INTERBANK LOANS
|
a)
|
As of March 31, 2019 and December
31, 2018, the balances for “Interbank loans” are as follows:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
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
|
|
|
26,466
|
|
|
|
15,093
|
|
Overdrafts in checking accounts
|
|
|
-
|
|
|
|
-
|
|
Non-transferable foreign bank deposits
|
|
|
-
|
|
|
|
-
|
|
Other foreign bank loans
|
|
|
-
|
|
|
|
-
|
|
Provisions and impairment for foreign bank loans
|
|
|
(52
|
)
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
26,414
|
|
|
|
15,055
|
|
|
b)
|
The amount of provisions and
impairment of interbank loans is detailed below:
|
|
|
As of March 31,
|
|
|
As of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Domestic
banks
|
|
|
Foreign
banks
|
|
|
Total
|
|
|
Domestic
banks
|
|
|
Foreign
banks
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1
|
|
|
-
|
|
|
|
29
|
|
|
|
29
|
|
|
|
-
|
|
|
|
86
|
|
|
|
86
|
|
Charge-offs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Provisions established
|
|
|
-
|
|
|
|
28
|
|
|
|
28
|
|
|
|
-
|
|
|
|
45
|
|
|
|
45
|
|
Provisions released
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(102
|
)
|
|
|
(251
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
-
|
|
|
|
52
|
|
|
|
52
|
|
|
|
-
|
|
|
|
29
|
|
|
|
29
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
48
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS
|
a)
|
Loans and accounts receivable
from customers
|
As of March 31, 2019 and December 31, 2018, the composition
of the loan portfolio is as follows:
|
|
Assets
before allowances
|
|
|
Established
Allowances
|
|
|
|
|
|
|
Normal
portfolio
|
|
|
Substandard
portfolio
|
|
|
Non-compliance
portfolio
|
|
|
Total
|
|
|
Individual
allowances
|
|
|
Group
allowances
|
|
|
Total
|
|
|
Assets
Net Balances
|
|
As of March 31,
2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
10.134.295
|
|
|
|
568.344
|
|
|
|
677.371
|
|
|
|
11.380.010
|
|
|
|
156.017
|
|
|
|
178.897
|
|
|
|
334.914
|
|
|
|
11.045.096
|
|
Foreign trade loans
|
|
|
1.537.472
|
|
|
|
39.194
|
|
|
|
50.313
|
|
|
|
1.626.979
|
|
|
|
49.786
|
|
|
|
1.868
|
|
|
|
51.654
|
|
|
|
1.575.325
|
|
Checking accounts debtors
|
|
|
186.280
|
|
|
|
13.120
|
|
|
|
15.562
|
|
|
|
214.962
|
|
|
|
3.686
|
|
|
|
12.981
|
|
|
|
16.667
|
|
|
|
198.295
|
|
Factoring transactions
|
|
|
415.214
|
|
|
|
4.827
|
|
|
|
4.230
|
|
|
|
424.271
|
|
|
|
5.554
|
|
|
|
857
|
|
|
|
6.411
|
|
|
|
417.860
|
|
Student Loans
|
|
|
67.062
|
|
|
|
-
|
|
|
|
10.625
|
|
|
|
77.687
|
|
|
|
-
|
|
|
|
5.936
|
|
|
|
5.936
|
|
|
|
71.751
|
|
Leasing transactions
|
|
|
1.221.446
|
|
|
|
109.493
|
|
|
|
97.449
|
|
|
|
1.428.388
|
|
|
|
18.957
|
|
|
|
10.917
|
|
|
|
29.874
|
|
|
|
1.398.514
|
|
Other loans and account receivable
|
|
|
129.350
|
|
|
|
1.465
|
|
|
|
35.029
|
|
|
|
165.844
|
|
|
|
11.017
|
|
|
|
18.102
|
|
|
|
29.119
|
|
|
|
136.725
|
|
Subtotal
|
|
|
13.691.119
|
|
|
|
736.443
|
|
|
|
890.579
|
|
|
|
15.318.141
|
|
|
|
245.017
|
|
|
|
229.558
|
|
|
|
474.575
|
|
|
|
14.843.566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans with mortgage finance bonds
|
|
|
14.958
|
|
|
|
-
|
|
|
|
1.145
|
|
|
|
16.103
|
|
|
|
-
|
|
|
|
87
|
|
|
|
87
|
|
|
|
16.016
|
|
Mortgage mutual loans
|
|
|
101.622
|
|
|
|
-
|
|
|
|
4.358
|
|
|
|
105.980
|
|
|
|
-
|
|
|
|
490
|
|
|
|
490
|
|
|
|
105.490
|
|
Other mortgage mutual loans
|
|
|
9.743.876
|
|
|
|
-
|
|
|
|
469.376
|
|
|
|
10.213.252
|
|
|
|
-
|
|
|
|
62.969
|
|
|
|
62.969
|
|
|
|
10.150.283
|
|
Subtotal
|
|
|
9.860.456
|
|
|
|
-
|
|
|
|
474.879
|
|
|
|
10.335.335
|
|
|
|
-
|
|
|
|
63.546
|
|
|
|
63.546
|
|
|
|
10.271.789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment consumer loans
|
|
|
3.022.900
|
|
|
|
-
|
|
|
|
246.810
|
|
|
|
3.269.710
|
|
|
|
-
|
|
|
|
221.065
|
|
|
|
221.065
|
|
|
|
3.048.645
|
|
Credit card balances
|
|
|
1.371.699
|
|
|
|
-
|
|
|
|
17.723
|
|
|
|
1.389.422
|
|
|
|
-
|
|
|
|
26.891
|
|
|
|
26.891
|
|
|
|
1.362.531
|
|
Leasing transactions
|
|
|
4.042
|
|
|
|
-
|
|
|
|
134
|
|
|
|
4.176
|
|
|
|
-
|
|
|
|
85
|
|
|
|
85
|
|
|
|
4.091
|
|
Other consumer loans
|
|
|
253.210
|
|
|
|
-
|
|
|
|
3.800
|
|
|
|
257.010
|
|
|
|
-
|
|
|
|
8.345
|
|
|
|
8.345
|
|
|
|
248.665
|
|
Subtotal
|
|
|
4.651.851
|
|
|
|
-
|
|
|
|
268.467
|
|
|
|
4.920.318
|
|
|
|
-
|
|
|
|
256.386
|
|
|
|
256.386
|
|
|
|
4.663.932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
28.203.426
|
|
|
|
736.443
|
|
|
|
1.633.925
|
|
|
|
30.573.794
|
|
|
|
245.017
|
|
|
|
549.490
|
|
|
|
794.507
|
|
|
|
29.779.287
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
49
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS, continued
|
|
Assets
before allowances
|
|
|
Established
Allowances
|
|
|
|
Normal
portfolio
|
|
|
Substandar
portfolio
|
|
|
Non-
compliance
portfolio
|
|
|
Total
|
|
|
Individual
allowances
|
|
|
Group
allowances
|
|
|
Total
|
|
|
Assets
Net Balances
|
|
As of December 31,
2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
9,988,841
|
|
|
|
552,462
|
|
|
|
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
|
|
|
|
-
|
|
|
|
63,546
|
|
|
|
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
|
|
|
|
-
|
|
|
|
374,595
|
|
|
|
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 Interim Financial Statements March 2019 / Banco Santander Chile
50
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS, continued
|
b)
|
Portfolio
characteristics
|
As of March 31, 2019 and December
31, 2018, the portfolio before allowances is as follows, by customer’s economic activity:
|
|
Domestic loans (*)
|
|
|
Foreign interbank loans
(**)
|
|
|
Total loans
|
|
|
Distribution percentage
|
|
|
|
As of
March 31
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
December 31
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
%
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
|
1,316,156
|
|
|
|
1,139,766
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,316,156
|
|
|
|
1,139,766
|
|
|
|
4.30
|
|
|
|
3.76
|
|
Mining
|
|
|
216,830
|
|
|
|
208,748
|
|
|
|
-
|
|
|
|
-
|
|
|
|
216,830
|
|
|
|
208,748
|
|
|
|
0.71
|
|
|
|
0.69
|
|
Electricity, gas, and water
|
|
|
350,298
|
|
|
|
408,932
|
|
|
|
-
|
|
|
|
-
|
|
|
|
350,298
|
|
|
|
408,932
|
|
|
|
1.14
|
|
|
|
1.35
|
|
Agriculture and livestock
|
|
|
1,232,441
|
|
|
|
1,206,197
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,232,441
|
|
|
|
1,206,197
|
|
|
|
4.03
|
|
|
|
3.98
|
|
Forest
|
|
|
158,228
|
|
|
|
143,888
|
|
|
|
-
|
|
|
|
-
|
|
|
|
158,228
|
|
|
|
143,888
|
|
|
|
0.52
|
|
|
|
0.48
|
|
Fishing
|
|
|
213,088
|
|
|
|
253,021
|
|
|
|
-
|
|
|
|
-
|
|
|
|
213,088
|
|
|
|
253,021
|
|
|
|
0.70
|
|
|
|
0.84
|
|
Transport
|
|
|
739,376
|
|
|
|
809,306
|
|
|
|
-
|
|
|
|
-
|
|
|
|
739,376
|
|
|
|
809,306
|
|
|
|
2.42
|
|
|
|
2.67
|
|
Communications
|
|
|
212,527
|
|
|
|
215,844
|
|
|
|
-
|
|
|
|
-
|
|
|
|
212,527
|
|
|
|
215,844
|
|
|
|
0.69
|
|
|
|
0.71
|
|
Construction
|
|
|
991,857
|
|
|
|
906,038
|
|
|
|
-
|
|
|
|
-
|
|
|
|
991,857
|
|
|
|
906,038
|
|
|
|
3.24
|
|
|
|
2.99
|
|
Commerce
|
|
|
3,339,501
|
|
|
|
3,386,806
|
|
|
|
26,466
|
|
|
|
15,093
|
|
|
|
3,365,967
|
|
|
|
3,401,899
|
|
|
|
11.00
|
|
|
|
11.23
|
|
Services
|
|
|
2,526,432
|
|
|
|
1,865,669
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,526,432
|
|
|
|
1,865,669
|
|
|
|
8.26
|
|
|
|
6.16
|
|
Other
|
|
|
4,021,407
|
|
|
|
4,695,445
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,021,407
|
|
|
|
4,695,445
|
|
|
|
13.14
|
|
|
|
15.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
15,318,141
|
|
|
|
15,239,660
|
|
|
|
26,466
|
|
|
|
15,093
|
|
|
|
15,344,607
|
|
|
|
15,254,753
|
|
|
|
50.15
|
|
|
|
50.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans
|
|
|
10,335,335
|
|
|
|
10,150,981
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,335,335
|
|
|
|
10,150,981
|
|
|
|
33.78
|
|
|
|
33.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
|
|
|
4,920,318
|
|
|
|
4,876,289
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,920,318
|
|
|
|
4,876,289
|
|
|
|
16.07
|
|
|
|
16.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
30,573,794
|
|
|
|
27,563,229
|
|
|
|
26,466
|
|
|
|
15,093
|
|
|
|
30,600,260
|
|
|
|
30,282,023
|
|
|
|
100.0
|
|
|
|
100.00
|
|
|
(*)
|
Includes domestic interbank
loans for Ch$0 million as of March 31, 2019 (Ch$1 million as of December 31, 2018), see
Note 8.
|
|
(**)
|
Includes foreign interbank
loans for Ch$26,466 million as of March 31, 2019 (Ch$15,093 million as of December 31,
2018), see Note 8.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
51
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Interim Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM
CUSTOMERS, continued
|
c)
|
Impaired
portfolio (*)
|
|
i)
|
As of March
31, 2019 and December 31, 2018, the impaired portfolio is the following
:
|
|
|
As
of Marzo 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Individually impaired portfolio
|
|
|
422,759
|
|
|
|
-
|
|
|
|
-
|
|
|
|
422,759
|
|
|
|
397,978
|
|
|
|
-
|
|
|
|
-
|
|
|
|
397,978
|
|
Non-performing loans (collectively evaluated)
|
|
|
409,665
|
|
|
|
128,429
|
|
|
|
85,373
|
|
|
|
623,467
|
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
Other impaired portfolio
|
|
|
221,690
|
|
|
|
346,450
|
|
|
|
183,094
|
|
|
|
751,234
|
|
|
|
224,750
|
|
|
|
338,785
|
|
|
|
186,277
|
|
|
|
749,812
|
|
Total
|
|
|
1,054,114
|
|
|
|
474,879
|
|
|
|
268,467
|
|
|
|
1,797,460
|
|
|
|
1,032,179
|
|
|
|
472,665
|
|
|
|
274,595
|
|
|
|
1,779,439
|
|
(*) The impaired portfolio corresponds
to the sum of loans classified as substandard B3 and B4 category as well as the non-compliance portfolio.
|
ii)
|
The impaired
portfolio with or without warranty as of March 31, 2019 and December 31, 2018 is the
following:
|
|
|
As
of March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Secured debt
|
|
|
631,274
|
|
|
|
433,782
|
|
|
|
29,175
|
|
|
|
1,094,231
|
|
|
|
604,545
|
|
|
|
430,011
|
|
|
|
29,201
|
|
|
|
1,063,757
|
|
Unsecured debt
|
|
|
422,840
|
|
|
|
41,097
|
|
|
|
239,292
|
|
|
|
703,229
|
|
|
|
427,634
|
|
|
|
42,654
|
|
|
|
245,394
|
|
|
|
715,682
|
|
Total
|
|
|
1,054,114
|
|
|
|
474,879
|
|
|
|
268,467
|
|
|
|
1,797,460
|
|
|
|
1,032,179
|
|
|
|
472,665
|
|
|
|
274,595
|
|
|
|
1,779,439
|
|
|
iii)
|
The portfolio
of non-performing loans (due for 90 days or longer) as of March 31, 2019 and December
31, 2018 is the following:
|
|
|
As
of March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Secured debt
|
|
|
192,877
|
|
|
|
116,359
|
|
|
|
8,047
|
|
|
|
317,283
|
|
|
|
192,889
|
|
|
|
121,690
|
|
|
|
8,516
|
|
|
|
323,095
|
|
Unsecured debt
|
|
|
216,788
|
|
|
|
12,070
|
|
|
|
77,326
|
|
|
|
306,184
|
|
|
|
216,562
|
|
|
|
12,190
|
|
|
|
79,802
|
|
|
|
308,554
|
|
Total
|
|
|
409,665
|
|
|
|
128,429
|
|
|
|
85,373
|
|
|
|
623,467
|
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
|
iv)
|
Reconciliation
of loans (with arrears equal to or greater tan 90 days), with past due loans as of March
31, 2019 and December 31, 2018, is the following:
|
|
|
As
of March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
With defaults equal to or greater than 90 days
|
|
|
407,242
|
|
|
|
126,525
|
|
|
|
83,263
|
|
|
|
617,030
|
|
|
|
399,382
|
|
|
|
130,716
|
|
|
|
85,137
|
|
|
|
615,235
|
|
With defaults up to 89 days, classified in
past due portfolio
|
|
|
2,423
|
|
|
|
1,904
|
|
|
|
2,110
|
|
|
|
6,437
|
|
|
|
10,069
|
|
|
|
3,164
|
|
|
|
3,181
|
|
|
|
16,414
|
|
Total
|
|
|
409,665
|
|
|
|
128,429
|
|
|
|
85,373
|
|
|
|
623,467
|
|
|
|
409,451
|
|
|
|
133,880
|
|
|
|
88,318
|
|
|
|
631,649
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
52
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS, continued
The changes in allowances balances
during 2019 and 2018 is the following:
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
Activity during 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 01, 2019
|
|
|
242,597
|
|
|
|
230,279
|
|
|
|
64,241
|
|
|
|
259,442
|
|
|
|
796,559
|
|
Allowances established
|
|
|
21,361
|
|
|
|
20,337
|
|
|
|
5,197
|
|
|
|
42,757
|
|
|
|
89,652
|
|
Allowances released
|
|
|
(11,982
|
)
|
|
|
(4,700
|
)
|
|
|
(1,912
|
)
|
|
|
(6,943
|
)
|
|
|
(25,537
|
)
|
Allowances released due to charge-off
|
|
|
(6,959
|
)
|
|
|
(16,358
|
)
|
|
|
(3,980
|
)
|
|
|
(38,870
|
)
|
|
|
(66,167
|
)
|
Balance as of March 31, 2019
|
|
|
245,017
|
|
|
|
229,558
|
|
|
|
63,546
|
|
|
|
256,386
|
|
|
|
794,507
|
|
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
Activity during 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 01, 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
|
|
In addition
to credit risk allowances, there are 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 March 31, 2019 and December 31, 2018 are Ch$575 million and Ch$620
million respectively. These are presented as “Allowances” in the liabilities
section of the “Consolidated Interim Statement of Financial Position”.
|
|
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 March 31, 2019 and December 31, 2018 are Ch$15,010 million and Ch$14,666 million,
respectively, and are presented as “Allowances” in the liabilities section
of the “Consolidated Interim Statement of Financial Position”.
|
e) Allowances established
The following chart shows the balance
of provisions established, associated with credits granted to customers and banks:
|
|
As of
March 31,
|
|
|
As of
Diciembre
31,
|
|
|
|
2019
MCh$
|
|
|
2018
MCh$
|
|
|
|
|
|
|
|
|
Customers loans
|
|
|
86,652
|
|
|
|
365,832
|
|
Interbank loans
|
|
|
28
|
|
|
|
45
|
|
Total
|
|
|
89,680
|
|
|
|
365,877
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
53
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 09
LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS, continued
|
f)
|
Portfolio
by its impaired and non-impaired condition
|
|
|
As
of March 31, 2019
|
|
|
|
Non-impaired
|
|
|
Impaired
|
|
|
Total portfolio
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total non-
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
portfolio
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portfolio
|
|
|
14,085,128
|
|
|
|
9,557,180
|
|
|
|
4,444,118
|
|
|
|
28,086,426
|
|
|
|
427,595
|
|
|
|
161,396
|
|
|
|
96,513
|
|
|
|
685,504
|
|
|
|
14,512,723
|
|
|
|
9,718,576
|
|
|
|
4,540,631
|
|
|
|
28,771,930
|
|
Overdue for 1-29 days
|
|
|
112,281
|
|
|
|
176,380
|
|
|
|
118,156
|
|
|
|
406,817
|
|
|
|
120,089
|
|
|
|
79,443
|
|
|
|
32,054
|
|
|
|
231,586
|
|
|
|
232,370
|
|
|
|
255,823
|
|
|
|
150,210
|
|
|
|
638,403
|
|
Overdue for 30-89 days
|
|
|
66,618
|
|
|
|
126,896
|
|
|
|
89,577
|
|
|
|
283,091
|
|
|
|
99,188
|
|
|
|
107,515
|
|
|
|
56,637
|
|
|
|
263,340
|
|
|
|
165,806
|
|
|
|
234,411
|
|
|
|
146,214
|
|
|
|
546,431
|
|
Overdue for 90 days or more
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
407,242
|
|
|
|
126,525
|
|
|
|
83,263
|
|
|
|
617,030
|
|
|
|
407,242
|
|
|
|
126,525
|
|
|
|
83,263
|
|
|
|
617,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio before allowances
|
|
|
14,264,027
|
|
|
|
9,860,456
|
|
|
|
4,651,851
|
|
|
|
28,776,334
|
|
|
|
1,054,114
|
|
|
|
474,879
|
|
|
|
268,467
|
|
|
|
1,797,460
|
|
|
|
15,318,141
|
|
|
|
10,335,335
|
|
|
|
4,920,318
|
|
|
|
30,573,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (less than 90 days) presented as portfolio percentage
|
|
|
1.25
|
%
|
|
|
3.08
|
%
|
|
|
4.47
|
%
|
|
|
2.40
|
%
|
|
|
20.80
|
%
|
|
|
39.37
|
%
|
|
|
33.04
|
%
|
|
|
27.53
|
%
|
|
|
2.60
|
%
|
|
|
4.74
|
%
|
|
|
6.02
|
%
|
|
|
3.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdue loans (90 days or more) presented as portfolio percentage
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
38.63
|
%
|
|
|
26.64
|
%
|
|
|
31.01
|
%
|
|
|
34.33
|
%
|
|
|
2.66
|
%
|
|
|
1.22
|
%
|
|
|
1.69
|
%
|
|
|
2.02
|
%
|
|
|
As
of December 31, 2018
|
|
|
|
Non-impaired
|
|
|
Impaired
|
|
|
Total portfolio
|
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total non-
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
impaired
|
|
|
Commercial
|
|
|
Mortgage
|
|
|
Consumer
|
|
|
Total
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
|
%
|
|
|
496
|
%
|
|
|
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 Interim Financial Statements March 2019 / Banco Santander Chile
54
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 10
AVAILABLE FOR SALE INVESTMENTS
As of March 31, 2019 and December 31,
2018, details of instruments defined as available for sale investments are as follows:
|
|
As of
March 31
|
|
|
As of
December 31
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Chilean Central Bank and Government securities
|
|
|
|
|
|
|
|
|
Chilean Central Bank Bonds
|
|
|
726,898
|
|
|
|
657,096
|
|
Chilean Central Bank Notes
|
|
|
495,528
|
|
|
|
56,719
|
|
Other Chilean Central Bank and Government securities
|
|
|
1,138,692
|
|
|
|
1,207,221
|
|
Subtotal
|
|
|
2,361,118
|
|
|
|
1,921,036
|
|
Other Chilean securities
|
|
|
|
|
|
|
|
|
Time deposits in Chilean financial institutions
|
|
|
520
|
|
|
|
2,693
|
|
Mortgage finance bonds of Chilean financial institutions
|
|
|
18,625
|
|
|
|
19,227
|
|
Chilean financial institution bonds
|
|
|
-
|
|
|
|
-
|
|
Chilean corporate bonds
|
|
|
-
|
|
|
|
-
|
|
Other Chilean securities
|
|
|
3,069
|
|
|
|
2,907
|
|
Subtotal
|
|
|
22,214
|
|
|
|
24,827
|
|
Foreign financial securities
|
|
|
|
|
|
|
|
|
Foreign Central Banks and Government securities
|
|
|
244,028
|
|
|
|
280,622
|
|
Other foreign financial securities
|
|
|
171,684
|
|
|
|
167,838
|
|
Subtotal
|
|
|
415,712
|
|
|
|
448,460
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,799,044
|
|
|
|
2,394,323
|
|
As of March 31, 2019 and December 31,
2018, the item
Chilean Central Bank and Government securities
item includes securities sold under repurchase agreements
to clients and financial institutions for Ch$120,808 million and Ch$16,109 million, respectivel. Under the same item, there are
instruments that guarantee margins for operations of derivatives through Comder Contraparte Central S.A. for an amount of $68,232
million and $ 42,910 million as of March 31, 2019 and December 31 of 2018.
As of March 31, 2019 and December 31,
2018, the item
Other Chilean Securities
includes securities sold to customers and financial institutions under repurchase
agreements totaling Ch$128 million and Ch$32,436 million, respectively.
The instruments of Foreign Institutions
include instruments sold under repurchase agreements with customers and financial institutions for a total of $62,687 and $24,910
million as of March 31, 2019 and December 31, 2018. Under the same item, there are instruments that guarantee margins for derivative
transactions through the London Clearing House (LCH) for an amount of $36,121 million and $48,106 million as of March 31, 2019
and December 31, 2018. 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 $129,649 million and $33,711 million as of March 31, 2019 and December 31, 2018.
As of March 31, 2019 available for sale
investments included a net unrealized profit of Ch$3,084 million, recorded as a “Valuation adjustment” in equity,
distributed between a profit of Ch$1,726 million attributable to equity holders of the Bank and a profit of Ch$1,358 million attributable
to non-controlling interest.
As of December 31, 2018 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$1,396 million attributable
to non-controlling interest.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
55
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 11
INTANGIBLE ASSETS
|
a)
|
As of March
31, 2019 and December 31, 2018 the composition of intangible assets is as follows:
|
|
|
|
|
|
|
|
|
|
As of March 31, 2019
|
|
|
|
Years
of
useful
life
|
|
Average
remaining
useful
life
|
|
Net
opening
balance as of
January
1, 2019
|
|
|
Gross balance
|
|
|
Accumulated
amortization
|
|
|
Net balance
|
|
|
|
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses
|
|
3
|
|
-
|
|
|
976
|
|
|
|
9,705
|
|
|
|
(8,781
|
)
|
|
|
924
|
|
Software development
|
|
3
|
|
2
|
|
|
65,947
|
|
|
|
344,807
|
|
|
|
(282,429
|
)
|
|
|
62,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
|
|
|
|
66,923
|
|
|
|
354,512
|
|
|
|
(291,210
|
)
|
|
|
63,302
|
|
Fully amortized assets
|
|
|
|
|
|
|
-
|
|
|
|
(245,656
|
)
|
|
|
245,656
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
66,923
|
|
|
|
108,856
|
|
|
|
(45,554
|
)
|
|
|
63,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
Years
of
useful
life
|
|
Average
remaining
useful
life
|
|
Net
opening
balance as of
January
1, 2018
|
|
|
Gross balance
|
|
|
Accumulated
amortization
|
|
|
Net balance
|
|
|
|
|
|
|
|
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
|
|
|
b)
|
The changes
in the value of intangible assets during the periods of March 31, 2019 and December 31,
2018 is as follows:
|
|
|
Licenses
|
|
|
Software
development
|
|
|
Fully
amortized
assets
|
|
|
Total
|
|
Gross balances
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
10,932
|
|
|
|
342,112
|
|
|
|
(245,242
|
)
|
|
|
107,802
|
|
Acquisitions
|
|
|
-
|
|
|
|
2,731
|
|
|
|
-
|
|
|
|
2,731
|
|
Disposals and impairment (*)
|
|
|
(1,227
|
)
|
|
|
(36
|
)
|
|
|
-
|
|
|
|
(1,263
|
)
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
(414
|
)
|
|
|
(414
|
)
|
Balances as of March 31, 2019
|
|
|
9,705
|
|
|
|
344,807
|
|
|
|
(245,656
|
)
|
|
|
108,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(*) See Note 31 a).
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
56
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 11
INTANGIBLE ASSETS, continued
|
b.2)
|
Accumulated
amortization
|
|
|
Licenses
|
|
|
Software
development
|
|
|
Fully
amortized
assets
|
|
|
Total
|
|
Accumulated amortization
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
(9,956
|
)
|
|
|
(276,165
|
)
|
|
|
245,242
|
|
|
|
(40,879
|
)
|
Amortization for the period
|
|
|
(53
|
)
|
|
|
(6,264
|
)
|
|
|
-
|
|
|
|
(6,316
|
)
|
Other changes
|
|
|
1,227
|
|
|
|
-
|
|
|
|
414
|
|
|
|
1,641
|
|
Balances as of March 31 , 2019
|
|
|
(8,781
|
)
|
|
|
(282,429
|
)
|
|
|
245,656
|
|
|
|
(45,554
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
c)
|
The Bank has no restriction
on intangible assets as of March 31, 2019 and December 31, 2018. 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 Interim Financial Statements March 2019 / Banco Santander Chile
57
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 12
PROPERTY, PLANT AND EQUIPMENT AND
RIGHT OF USE ASSETS AND OBLIGATION FOR LEASE CONTRACT
|
a)
|
As of March
31, 2019 and December 31, 2018 the property, plant and equipment balances is as follows:
|
|
|
|
|
|
As of March 31, 2019
|
|
|
|
Net
opening
balance as of
January
1, 2019
|
|
|
Gross
balance
|
|
|
Accumulated
depreciation
|
|
|
Net
balance
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and building (*)
|
|
|
132,527
|
|
|
|
232,350
|
|
|
|
(100,776
|
)
|
|
|
131,574
|
|
Equipment
|
|
|
58,202
|
|
|
|
218,257
|
|
|
|
(167,136
|
)
|
|
|
51,121
|
|
Ceded under operating leases
|
|
|
4,221
|
|
|
|
4,893
|
|
|
|
(667
|
)
|
|
|
4,226
|
|
Other
|
|
|
14,206
|
|
|
|
64,391
|
|
|
|
(50,219
|
)
|
|
|
14,172
|
|
Subtotal
|
|
|
209,156
|
|
|
|
519,891
|
|
|
|
(318,798
|
)
|
|
|
201,093
|
|
Fully depreciated assets
|
|
|
-
|
|
|
|
(22,698
|
)
|
|
|
22,698
|
|
|
|
-
|
|
Total
|
|
|
209,156
|
|
|
|
497,193
|
|
|
|
(296,100
|
)
|
|
|
201,093
|
|
(*) As of January
1, 2019, assets have been reclassified by application of IFRS 16, according to circular Banks No. 3,645 of the SBIF.
|
|
|
|
|
As of December 31, 2018
|
|
|
|
Net
opening
balance as of
January
1, 2018
|
|
|
Gross
balance
|
|
|
Accumulated
depreciation
|
|
|
Net
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
|
)
|
|
|
14,260
|
|
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
|
|
|
b)
|
The changes
in the value of property, plant and equipment as of March 31, 2019 and December 31, 2018
is the following:
|
|
|
Land and buildings
|
|
|
Equipment
|
|
|
Operating
leases
|
|
|
Other
|
|
|
Fully
depreciated
assets
|
|
|
Total
|
|
2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
309,385
|
|
|
|
217,958
|
|
|
|
4,888
|
|
|
|
67,197
|
|
|
|
(55,374
|
)
|
|
|
544,054
|
|
Additions
|
|
|
1,372
|
|
|
|
501
|
|
|
|
-
|
|
|
|
2,237
|
|
|
|
-
|
|
|
|
4,110
|
|
Disposals
|
|
|
(78,407
|
)
|
|
|
(202
|
)
|
|
|
-
|
|
|
|
(150
|
)
|
|
|
31,652
|
|
|
|
(47,107
|
)
|
Impairment due to damage (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
(4,893
|
)
|
|
|
1,024
|
|
|
|
(3,864
|
)
|
Balances as of March 31, 2019
|
|
|
232,350
|
|
|
|
218,257
|
|
|
|
4,893
|
|
|
|
64,391
|
|
|
|
(22,698
|
)
|
|
|
497,193
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
58
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 12
PROPERTY, PLANT AND EQUIPMENT AND
RIGHT OF USE ASSETS AND OBLIGATION FOR LEASE CONTRACT, continued
|
|
Land and
buildings
|
|
|
Equipment
|
|
|
Operating
leases
|
|
|
Other
|
|
|
Fully
depreciated
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
|
|
|
|
28,428
|
|
|
|
-
|
|
|
|
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
|
|
|
|
271,958
|
|
|
|
4,888
|
|
|
|
67,197
|
|
|
|
(55,374
|
)
|
|
|
544,054
|
|
(*) Banco Santander Chile has had to recognize in its financial
statements as of December 31, 2018 impairment by 39 million, corresponding to looting in ATM’s. Compensation charged for
insurance concepts involved, amounted to Ch$144 million, which are presented in “Other income and operational expenses”.
|
b.2)
|
Accumulated
depreciation
|
|
|
Land and buildings
|
|
|
Equipment
|
|
|
Operating
leases
|
|
|
Other
|
|
|
Fully
depreciated
assets
|
|
|
Total
|
|
2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
(132,428
|
)
|
|
|
(159,756
|
)
|
|
|
(667
|
)
|
|
|
(52,991
|
)
|
|
|
55,374
|
|
|
|
(290,468
|
)
|
Depreciation in the period
|
|
|
(2,325
|
)
|
|
|
(7,513
|
)
|
|
|
-
|
|
|
|
(2,130
|
)
|
|
|
-
|
|
|
|
(11,968
|
)
|
Sales and disposals in the period
|
|
|
33,977
|
|
|
|
133
|
|
|
|
-
|
|
|
|
4,222
|
|
|
|
(31,652
|
)
|
|
|
6,680
|
|
Transfers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Others
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
680
|
|
|
|
(1,024
|
)
|
|
|
(344
|
)
|
Balances as of March 31, 2019
|
|
|
(100,776
|
)
|
|
|
(167,136
|
)
|
|
|
(667
|
)
|
|
|
(50,219
|
)
|
|
|
22,698
|
|
|
|
(296,100
|
)
|
|
|
Land and buildings
|
|
|
Equipment
|
|
|
Operating
leases
|
|
|
Other
|
|
|
Fully
depreciated
assets
|
|
|
Total
|
|
2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
(114,727
|
)
|
|
|
(130,173
|
)
|
|
|
(667
|
)
|
|
|
(45,364
|
)
|
|
|
59,045
|
|
|
|
(231,886
|
)
|
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
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
59
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 12
PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE ASSETS AND
OBLIGATION FOR LEASE CONTRACT, continued
|
c)
|
Operational leases - Lessor
|
As of March 31, 2019 and December 31,
2018, the future minimum lease cash inflows under non-cancellable operating leases are as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
651
|
|
|
|
469
|
|
Due after 1 year but within 2 years
|
|
|
1,382
|
|
|
|
882
|
|
Due after 2 years but within 3 years
|
|
|
498
|
|
|
|
469
|
|
Due after 3 years but within 4 years
|
|
|
487
|
|
|
|
460
|
|
Due after 4 years but within 5 years
|
|
|
464
|
|
|
|
428
|
|
Due after 5 years
|
|
|
1,828
|
|
|
|
2,242
|
|
Total
|
|
|
5,310
|
|
|
|
4,950
|
|
|
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
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
8,504
|
|
|
|
25,702
|
|
Due after 1 year but within 2 years
|
|
|
-
|
|
|
|
24,692
|
|
Due after 2 years but within 3 years
|
|
|
-
|
|
|
|
22,439
|
|
Due after 3 years but within 4 years
|
|
|
-
|
|
|
|
19,574
|
|
Due after 4 years but within 5 years
|
|
|
-
|
|
|
|
17,250
|
|
Due after 5 years
|
|
|
-
|
|
|
|
63,945
|
|
Total
|
|
|
8,504
|
|
|
|
173,602
|
|
|
e)
|
As of March
31, 2019 and December 31, 2018 the Bank has no finance leases which cannot be unilaterally
cancelled.
|
|
f)
|
The Bank has
no restriction on property, plant and equipment as of March 31, 2019 and December 31,
2018. 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 Interim Financial Statements March 2019 / Banco Santander Chile
60
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 12
PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE ASSETS AND
OBLIGATION FOR LEASE CONTRACT, continued
|
g)
|
The composition of the active
item for the right to use assets under lease as of March 31, 2019 and December 31, 2018
is as follows:
|
|
|
|
|
|
Al 31 de marzo de 2019
|
|
|
|
Net
opening
balance as of
January
1, 2019
|
|
|
Gross
balance
|
|
|
Accumulated
depreciation
|
|
|
Net
balance
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and building
|
|
|
-
|
|
|
|
160,515
|
|
|
|
(5,928
|
)
|
|
|
154,587
|
|
Lease improvements
|
|
|
-
|
|
|
|
80,732
|
|
|
|
(35,790
|
)
|
|
|
44,942
|
|
Equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Totales
|
|
|
-
|
|
|
|
241,247
|
|
|
|
(41,718
|
)
|
|
|
199,529
|
|
|
h)
|
The movement of the active item
by right to use assets under lease during the periods 2019 and 2018, is as follows:
|
h.1)
Gross balance
|
|
Land and
building
|
|
|
Lease
improvements
|
|
|
Equipment
|
|
|
Other
|
|
|
Total
|
|
2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
154,839
|
|
|
|
78,407
|
|
|
|
-
|
|
|
|
-
|
|
|
|
233,246
|
|
Additions
|
|
|
6,660
|
|
|
|
2,325
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,985
|
|
Disposals
|
|
|
(3,924
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,924
|
)
|
Impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
2,940
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,940
|
|
Balances as of March 31, 2019
|
|
|
160,515
|
|
|
|
80,732
|
|
|
|
-
|
|
|
|
-
|
|
|
|
241,247
|
|
|
h.2)
|
Accumulated
amortization
|
|
|
Land and
building
|
|
|
Lease
improvements
|
|
|
Equipment
|
|
|
Other
|
|
|
Total
|
|
2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
-
|
|
|
|
(33,977
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(33,977
|
)
|
Amortization for the period
|
|
|
(6,065
|
)
|
|
|
(1,813
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,878
|
)
|
Sales and disposals in the period
|
|
|
208
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
208
|
|
Transfers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(71
|
)
|
Balances as of March 31, 2019
|
|
|
(5,928
|
)
|
|
|
(35,790
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(41,718
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
61
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 12
PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE ASSETS AND
OBLIGATION FOR LEASE CONTRACT, continued
|
i)
|
Obligation for lease contract
|
As of March 31, 2019 and
December 31, 2018, the obligations for lease agreements are as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Obligation
for lease contract
|
|
|
154,839
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Totales
|
|
|
154,839
|
|
|
|
-
|
|
|
j)
|
As of March 31, 2019 and December
31, 2018, the maturity level of the obligations for lease agreements, according to their
contractual maturity is as follows:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
462
|
|
|
|
-
|
|
Due after 1 year but within 2 years
|
|
|
3,534
|
|
|
|
-
|
|
Due after 2 years but within 3 years
|
|
|
6,807
|
|
|
|
-
|
|
Due after 3 years but within 4 years
|
|
|
6,702
|
|
|
|
-
|
|
Due after 4 years but within 5 years
|
|
|
13,323
|
|
|
|
-
|
|
Due after 5 years
|
|
|
124,012
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Totales
|
|
|
154,839
|
|
|
|
-
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
62
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 13
CURRENT AND DEFERRED TAXES
As of March 31, 2019 and December 31, 2018, 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
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Summary of current tax liabilities (assets)
|
|
|
|
|
|
|
|
|
Current tax (assets)
|
|
|
(10.195
|
)
|
|
|
-
|
|
Current tax liabilities
|
|
|
-
|
|
|
|
8,093
|
|
|
|
|
|
|
|
|
|
|
Total tax payable (recoverable)
|
|
|
(10,195
|
)
|
|
|
8,093
|
|
|
|
|
|
|
|
|
|
|
(Assets) liabilities current taxes detail (net)
|
|
|
|
|
|
|
|
|
Income tax (*)
|
|
|
195,209
|
|
|
|
166,173
|
|
Less:
|
|
|
|
|
|
|
|
|
Provisional monthly payments
|
|
|
(202,677
|
)
|
|
|
(155,706
|
)
|
Credit for training expenses
|
|
|
(2.315
|
)
|
|
|
(1,937
|
)
|
Grant credits
|
|
|
(1,453
|
)
|
|
|
(1,320
|
)
|
Other
|
|
|
1,041
|
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
Total tax payable (recoverable)
|
|
|
(10,195
|
)
|
|
|
8,093
|
|
(*) For 2019 the tax rates were
27% and 27% for 2018
The effect tax expense has on income for
the period ended March 31, 2019 and 2018 is comprised of the following items:
|
|
As of March 31,
|
|
|
|
2019
MCh$
|
|
|
2018
MCh$
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
Current tax
|
|
|
29,036
|
|
|
|
29,070
|
|
Credits (debits) for deferred taxes
|
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences
|
|
|
12,955
|
|
|
|
15,346
|
|
Provision due to valuation
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
41,991
|
|
|
|
44,416
|
|
Tax for rejected expenses (Article No,21)
|
|
|
155
|
|
|
|
193
|
|
Other
|
|
|
-
|
|
|
|
(56
|
)
|
Net income tax expense
|
|
|
42,146
|
|
|
|
44,553
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
63
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 13
CURRENT AND DEFERRED TAXES, continued
|
c)
|
Effective
tax rate reconciliation
|
The reconciliation between the income
tax rate and the effective rate in tax expense as of March 31, 2019 and 2018 is as follows:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Tax rate
|
|
|
Amount
|
|
|
Tax rate
|
|
|
Amount
|
|
|
|
%
|
|
|
MCh$
|
|
|
%
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax calculated over profit before tax
|
|
|
27.00
|
|
|
|
45,307
|
|
|
|
27.00
|
|
|
|
53,014
|
|
Permanent differences (1)
|
|
|
(2.07
|
)
|
|
|
(3,481
|
)
|
|
|
(4.88
|
)
|
|
|
(9,546
|
)
|
Penalty tax (rejected expenses)
|
|
|
0.09
|
|
|
|
154
|
|
|
|
0.08
|
|
|
|
193
|
|
Rate change effect
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
0.10
|
|
|
|
166
|
|
|
|
0.47
|
|
|
|
892
|
|
Effective rates and expenses for income tax
|
|
|
25.12
|
|
|
|
42,146
|
|
|
|
22.67
|
|
|
|
44,553
|
|
(1) Mainly corresponds to the permanent differences originated
from the Own Tax Monetary Correction.
|
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 March 31, 2019 and December
31, 2018 is the following:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
4,416
|
|
|
|
1,071
|
|
Cash flow hedges
|
|
|
2,019
|
|
|
|
65
|
|
Total deferred tax assets recognized through other comprehensive
income
|
|
|
6,435
|
|
|
|
1,136
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
(8,764
|
)
|
|
|
(2,806
|
)
|
Cash flow hedges
|
|
|
-
|
|
|
|
(2,711
|
)
|
Total deferred tax liabilities recognized through other
comprehensive income
|
|
|
(8,764
|
)
|
|
|
(5,517
|
)
|
|
|
|
|
|
|
|
|
|
Net deferred tax balances in equity
|
|
|
(2,329
|
)
|
|
|
(4,381
|
)
|
|
|
|
|
|
|
|
|
|
Deferred taxes in equity attributable to equity holders of the bank
|
|
|
(1,976
|
)
|
|
|
(4,027
|
)
|
Deferred tax in equity attributable to non-controlling interests
|
|
|
(354
|
)
|
|
|
(354
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
64
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 13
CURRENT AND DEFERRED TAXES, continued
|
e)
|
Effect
of deferred taxes on income
|
During 2019 and 2018, the Bank has registered in its finiancial
statements the effects from deffered taxes.
Below are effects of deferred taxes on
assets, liabilities and income allocated for temporary differences:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
Interests and adjustments
|
|
|
8,888
|
|
|
|
8,747
|
|
Non-recurring charge-offs
|
|
|
13,173
|
|
|
|
13,790
|
|
Assets received in lieu of payment
|
|
|
1,985
|
|
|
|
2,467
|
|
Exchange rate adjustment
|
|
|
1,592
|
|
|
|
1,675
|
|
Property, plant and equipment
|
|
|
6,262
|
|
|
|
6,138
|
|
Provision for loan losses
|
|
|
165,863
|
|
|
|
168,320
|
|
Provision for expenses
|
|
|
59,263
|
|
|
|
63,134
|
|
Derivatives
|
|
|
223
|
|
|
|
3,924
|
|
Leased assets
|
|
|
106,011
|
|
|
|
107,897
|
|
Subsidiaries tax losses
|
|
|
5,325
|
|
|
|
5,314
|
|
Preapid expenses
|
|
|
93
|
|
|
|
156
|
|
Investment valuation
|
|
|
-
|
|
|
|
-
|
|
Right of use assets
|
|
|
41,808
|
|
|
|
-
|
|
Others
|
|
|
-
|
|
|
|
-
|
|
Total deferred tax assets
|
|
|
410,486
|
|
|
|
381,798
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
Valuation of investments
|
|
|
(1,191
|
)
|
|
|
(42
|
)
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
Anticipated Expenses
|
|
|
(477
|
)
|
|
|
(349
|
)
|
Valuation provision
|
|
|
(6,083
|
)
|
|
|
(6,084
|
)
|
Derivatives
|
|
|
(1,991
|
)
|
|
|
(3,383
|
)
|
Exchange rate adjustments
|
|
|
-
|
|
|
|
-
|
|
Obligation for lease contract
|
|
|
(41,739
|
)
|
|
|
-
|
|
Others
|
|
|
(19
|
)
|
|
|
(20
|
)
|
Total deferred tax liabilities
|
|
|
(51,500
|
)
|
|
|
(9,878
|
)
|
|
f)
|
Summary
of deferred tax assets and liabilities
|
A summary of the effect of deferred taxes
on equity and income follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
Recognized through other comprehensive income
|
|
|
6,435
|
|
|
|
1,136
|
|
Recognized through profit or loss
|
|
|
410,487
|
|
|
|
381,798
|
|
Total deferred tax assets
|
|
|
416,922
|
|
|
|
382,934
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
Recognized through other comprehensive income
|
|
|
(8,764
|
)
|
|
|
(5,517
|
)
|
Recognized through profit or loss
|
|
|
(51,500
|
)
|
|
|
(9,878
|
)
|
Total deferred tax liabilities
|
|
|
(60,264
|
)
|
|
|
(15,395
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
65
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 14
OTHER ASSETS
The composition of other assets is the following:
|
|
As of
Marzo 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Assets for leasing (1)
|
|
|
43,513
|
|
|
|
47,486
|
|
|
|
|
|
|
|
|
|
|
Assets received or awarded in lieu of payment (2)
|
|
|
|
|
|
|
|
|
Assets received in lieu of payment
|
|
|
13,522
|
|
|
|
11,297
|
|
Assets awarded at judicial sale
|
|
|
19,261
|
|
|
|
21,524
|
|
Provision on assets received in lieu of payment or awarded
|
|
|
(743
|
)
|
|
|
(723
|
)
|
Subtotal
|
|
|
32,040
|
|
|
|
32,098
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
Guarantee deposits (margin accounts) (3)
|
|
|
233,175
|
|
|
|
170,232
|
|
Investments in gold
|
|
|
514
|
|
|
|
522
|
|
VAT credit tax
|
|
|
8,032
|
|
|
|
9,097
|
|
Income tax recoverable
|
|
|
1,756
|
|
|
|
1,756
|
|
Prepaid expenses
|
|
|
484,235
|
|
|
|
477,819
|
|
Plant, Property and Equipment held for sale
|
|
|
-
|
|
|
|
-
|
|
Assets recovered from leasing held for sale
|
|
|
6,670
|
|
|
|
6,848
|
|
Macro-hedging valuation adjustment
|
|
|
28,870
|
|
|
|
9,414
|
|
Pension plan assets
|
|
|
834
|
|
|
|
846
|
|
Accounts and notes receivable
|
|
|
103,119
|
|
|
|
59,511
|
|
Notes receivable through brokerage and simultaneous transactions
|
|
|
61,906
|
|
|
|
78,330
|
|
Other receivable accounts
|
|
|
42,528
|
|
|
|
48,612
|
|
Other assets
|
|
|
47,222
|
|
|
|
42,417
|
|
Subtotal
|
|
|
1,018,861
|
|
|
|
905,404
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,094,414
|
|
|
|
984,988
|
|
|
(1)
|
Corresponds
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
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 0.32% (0,28% as
of December 31, 2018) 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)
|
Correspond
to deposits left in guarantee from determined derivative contracts. These guarantees
become operative when the valuation from these derivatives surpases the defined thresholds
for the contracts, these can be in favor or against the Bank.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
66
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 15
TIME DEPOSITS AND OTHER TIME LIABILITIES
As of March 31, 2019 and December 31, 2018, the composition
of the item time deposits and other liabilities is as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Deposits and other demand liabilities
|
|
|
|
|
|
|
|
|
Checking accounts
|
|
|
6,758,052
|
|
|
|
6,794,132
|
|
Other deposits and demand accounts
|
|
|
631,069
|
|
|
|
709,711
|
|
Other demand liabilities
|
|
|
1,137,222
|
|
|
|
1,237,574
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,526,343
|
|
|
|
8,741,417
|
|
|
|
|
|
|
|
|
|
|
Time deposits and other time liabilities
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
12,813,239
|
|
|
|
12,944,846
|
|
Time savings account
|
|
|
118,333
|
|
|
|
118,587
|
|
Other time liabilities
|
|
|
4,131
|
|
|
|
4,386
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
12,935,703
|
|
|
|
13,067,819
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
67
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL LIABILITIES
As of March 31, 2019 and December 31, 2018, the composition
for this item is as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Other financial liabilities
|
|
|
|
|
|
|
|
|
Obligations to public sector
|
|
|
32,202
|
|
|
|
32,449
|
|
Other domestic obligations
|
|
|
164,139
|
|
|
|
175,210
|
|
Foreign obligations
|
|
|
19,538
|
|
|
|
7,741
|
|
Subtotal
|
|
|
215,879
|
|
|
|
215,400
|
|
Issued debt instruments
|
|
|
|
|
|
|
|
|
Mortgage finance bonds
|
|
|
23,300
|
|
|
|
25,490
|
|
Senior bonds
|
|
|
7,623,579
|
|
|
|
7,198,865
|
|
Mortgage Bonds
|
|
|
92,099
|
|
|
|
94,921
|
|
Subordinated bonds
|
|
|
795,243
|
|
|
|
795,957
|
|
Subtotal
|
|
|
8,534,221
|
|
|
|
8,115,233
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,750,100
|
|
|
|
8,330,633
|
|
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 March 31, 2019
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Mortgage finance bonds
|
|
|
6,349
|
|
|
|
16,951
|
|
|
|
23,301
|
|
Senior bonds
|
|
|
1,322,886
|
|
|
|
6,300,693
|
|
|
|
7,623,579
|
|
Mortgage Bonds
|
|
|
6,434
|
|
|
|
85,665
|
|
|
|
92,098
|
|
Subordinated bonds
|
|
|
1
|
|
|
|
795,242
|
|
|
|
795,243
|
|
Issued debt instruments
|
|
|
1,335,670
|
|
|
|
7,198,551
|
|
|
|
8,534,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities
|
|
|
206,754
|
|
|
|
33,721
|
|
|
|
215,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,542,424
|
|
|
|
7,345,623
|
|
|
|
8,750,100
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
68
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL LIABILITIES,
continued
|
|
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
|
|
|
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 5.42% as of March 31, 2019 (5.39% as of December 31,
2018).
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
6,349
|
|
|
|
6,830
|
|
Due after 1 year but within 2 years
|
|
|
5,745
|
|
|
|
5,946
|
|
Due after 2 years but within 3 years
|
|
|
4,774
|
|
|
|
5,034
|
|
Due after 3 years but within 4 years
|
|
|
3,704
|
|
|
|
3,997
|
|
Due after 4 years but within 5 years
|
|
|
2,024
|
|
|
|
2,480
|
|
Due after 5 years
|
|
|
704
|
|
|
|
1,203
|
|
Total mortgage finance bonds
|
|
|
23,300
|
|
|
|
25,490
|
|
The following table shows senior bonds by
currency:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Santander bonds in UF
|
|
|
4,327,386
|
|
|
|
4,095,741
|
|
Santander bonds in USD
|
|
|
1,239,497
|
|
|
|
1,094,267
|
|
Santander bonds in CHF
|
|
|
476,913
|
|
|
|
386,979
|
|
Santander bonds in Ch$
|
|
|
1,238,362
|
|
|
|
1,291,900
|
|
Santander bonds in AUD
|
|
|
24,428
|
|
|
|
24,954
|
|
Santander bonds in JPY
|
|
|
185,690
|
|
|
|
191,598
|
|
Santander bonds in EUR
|
|
|
131,303
|
|
|
|
113,426
|
|
Total senior bonds
|
|
|
7,623,579
|
|
|
|
7,198,865
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
69
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
i. Placement of senior bonds:
As of March 31, 2019 the Bank has placed bonds for
UF 14,000,000, CLP 75,000,000,000 EUR 30,000,000 Y CHF 150,000,000 detailed as follows:
Series
|
|
Currency
|
|
Amount placed
|
|
|
Term
(years)
|
|
|
Issuance rate
(Annual)
|
|
|
Issue date
|
|
Amount
|
|
|
Maturity date
|
T7
|
|
UF
|
|
|
4,000,000
|
|
|
|
4
|
|
|
|
2.50
|
%
|
|
02-01-2016
|
|
|
5,000,000
|
|
|
02-01-2023
|
T8
|
|
UF
|
|
|
2,000,000
|
|
|
|
4.6
|
|
|
|
2.50
|
%
|
|
02-01-2016
|
|
|
8,000,000
|
|
|
08-01-2023
|
T14
|
|
UF
|
|
|
3,000,000
|
|
|
|
8
|
|
|
|
2.80
|
%
|
|
02-01-2016
|
|
|
18,000,000
|
|
|
02-01-2027
|
Total
|
|
UF
|
|
|
9,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,000,000
|
|
|
|
U9
|
|
CLP
|
|
|
75,000,000,000
|
|
|
|
2.8
|
|
|
|
ICP
+ 0,8%
|
|
|
11-01-2018
|
|
|
75,000,000,000
|
|
|
11-19-2021
|
Total
|
|
CLP
|
|
|
75,000,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,000,000,000
|
|
|
|
EUR
|
|
EUR
|
|
|
30,000,000
|
|
|
|
7
|
|
|
|
1.10
|
%
|
|
02-01-2019
|
|
|
40,000,000
|
|
|
02-07-2026
|
Total
|
|
EUR
|
|
|
30,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,000,000
|
|
|
02-07-2026
|
CHF
|
|
CHF
|
|
|
150,000,000
|
|
|
|
5.6
|
|
|
|
0.384
|
%
|
|
03-12-2019
|
|
|
150,000,000
|
|
|
09-27-2024
|
Total
|
|
CHF
|
|
|
150,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150,000,000
|
|
|
|
During 2019’s first trimester, the Bank repurchased
the following bonds:
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
02-12-2019
|
|
Senior
|
|
CLP
|
|
|
10.000.000.000
|
|
02-14-2019
|
|
Senior
|
|
CLP
|
|
|
30.000.000.000
|
|
02-19-2019
|
|
Senior
|
|
CLP
|
|
|
4.200.000.000
|
|
02-22-2019
|
|
Senior
|
|
CLP
|
|
|
14.240.000.000
|
|
03-01-2019
|
|
Senior
|
|
CLP
|
|
|
11.800.000.000
|
|
03-04-2019
|
|
Senior
|
|
CLP
|
|
|
40.080.000.000
|
|
03-05-2019
|
|
Senior
|
|
CLP
|
|
|
20.000.000.000
|
|
03-15-2019
|
|
Senior
|
|
UF
|
|
|
156.000
|
|
03-19-2019
|
|
Senior
|
|
UF
|
|
|
418.000
|
|
03-20-2019
|
|
Senior
|
|
CLP
|
|
|
6.710.000.000
|
|
03-20-2019
|
|
Senior
|
|
UF
|
|
|
154.000
|
|
03-21-2019
|
|
Senior
|
|
UF
|
|
|
100.000
|
|
03-25-2019
|
|
Senior
|
|
UF
|
|
|
100.000
|
|
03-26-2019
|
|
Senior
|
|
UF
|
|
|
90.000
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
70
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
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 and JPY 7,000,000,000, detailed as follows:
Series
|
|
Currency
|
|
Amount placed
|
|
|
Term
(years)
|
|
|
Issuance
rate
(Annual)
|
|
|
Issue date
|
|
Amount
|
|
|
Maturity
date
|
T1
|
|
UF
|
|
|
4.000.000
|
|
|
|
2
|
|
|
|
2.20%
|
|
|
02-01-2016
|
|
|
7.000.000
|
|
|
02-01-2020
|
T4
|
|
UF
|
|
|
4.000.000
|
|
|
|
3
|
|
|
|
2.35%
|
|
|
02-01-2016
|
|
|
8.000.000
|
|
|
08-01-2021
|
T11
|
|
UF
|
|
|
5.000.000
|
|
|
|
7
|
|
|
|
2.65%
|
|
|
02-01-2016
|
|
|
5.000.000
|
|
|
02-01-2025
|
T12
|
|
UF
|
|
|
5.000.000
|
|
|
|
7
|
|
|
|
2.70%
|
|
|
02-01-2016
|
|
|
5.000.000
|
|
|
08-01-2025
|
T15
|
|
UF
|
|
|
5.000.000
|
|
|
|
11
|
|
|
|
3.00%
|
|
|
02-01-2016
|
|
|
5.000.000
|
|
|
08-01-2028
|
Total
|
|
UF
|
|
|
23.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30.000.000
|
|
|
|
P5
|
|
CLP
|
|
|
75.000.000.000
|
|
|
|
4
|
|
|
|
5.30%
|
|
|
03-05-2015
|
|
|
150.000.000.000
|
|
|
03-01-2022
|
U4
|
|
CLP
|
|
|
75.000.000.000
|
|
|
|
3.4
|
|
|
|
ICP
+ 1.00%
|
|
|
01-10-2017
|
|
|
75.000.000.000
|
|
|
01-10-2022
|
U3
|
|
CLP
|
|
|
75.000.000.000
|
|
|
|
2.7
|
|
|
|
ICP
+ 1.00%
|
|
|
06-11-2018
|
|
|
75.000.000.000
|
|
|
06-11-2021
|
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%
|
|
|
11-16-2018
|
|
|
20.000.000
|
|
|
11-16-2020
|
Total
|
|
USD
|
|
|
70.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70.000.000
|
|
|
|
EUR
|
|
EUR
|
|
|
26.000.000
|
|
|
|
7
|
|
|
|
1.00%
|
|
|
05-04-2018
|
|
|
26.000.000
|
|
|
05-28-2025
|
EUR
|
|
EUR
|
|
|
40.000.000
|
|
|
|
12
|
|
|
|
1.78%
|
|
|
06-07-2018
|
|
|
40.000.000
|
|
|
06-15-2030
|
Total
|
|
EUR
|
|
|
66.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66.000.000
|
|
|
|
AUD
|
|
AUD
|
|
|
20.000.000
|
|
|
|
5
|
|
|
|
3.56%
|
|
|
11-13-2018
|
|
|
20.000.000
|
|
|
11-13-2023
|
Total
|
|
AUD
|
|
|
20.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.000.000
|
|
|
|
CHF
|
|
CHF
|
|
|
115.000.000
|
|
|
|
5.3
|
|
|
|
0.441%
|
|
|
09-21-2018
|
|
|
115.000.000
|
|
|
12-21-2023
|
Total
|
|
CHF
|
|
|
115.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115.000.000
|
|
|
|
JPY
|
|
JPY
|
|
|
4.000.000.000
|
|
|
|
10.6
|
|
|
|
0.65%
|
|
|
07-13-2018
|
|
|
4.000.000.000
|
|
|
01-13-2029
|
JPY
|
|
JPY
|
|
|
3.000.000.000
|
|
|
|
5
|
|
|
|
56%
|
|
|
10-30-2018
|
|
|
3.000.000.000
|
|
|
10-30-2023
|
Total
|
|
JPY
|
|
|
7.000.000.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000.000.000
|
|
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
71
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
During 2018, the Bank partially repurchased the following bonds:
Date
|
|
Type
|
|
Currency
|
|
Amount
|
|
01-04-2018
|
|
Senior
|
|
CLP
|
|
|
12.890.000.000
|
|
01-04-2018
|
|
Senior
|
|
CLP
|
|
|
4.600.000.000
|
|
01-22-2018
|
|
Senior
|
|
UF
|
|
|
24.000
|
|
04-05-2018
|
|
Senior
|
|
UF
|
|
|
484.000
|
|
04-06-2018
|
|
Senior
|
|
UF
|
|
|
184.000
|
|
04-23-2018
|
|
Senior
|
|
UF
|
|
|
216.000
|
|
04-24-2018
|
|
Senior
|
|
UF
|
|
|
4.000
|
|
04-25-2018
|
|
Senior
|
|
UF
|
|
|
262.000
|
|
05-10-2018
|
|
Senior
|
|
UF
|
|
|
800.000
|
|
06-07-2018
|
|
Senior
|
|
USD
|
|
|
3.090.000
|
|
12-11-2018
|
|
Senior
|
|
USD
|
|
|
250.000.000
|
|
|
ii.
|
Maturities
for senior bonds are the following:
|
|
|
As of
March
31,
|
|
|
As of
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
1,322,886
|
|
|
|
844,898
|
|
Due after 1 year but within 2 years
|
|
|
1,443,913
|
|
|
|
1,331,255
|
|
Due after 2 years but within 3 years
|
|
|
914,553
|
|
|
|
1,073,847
|
|
Due after 3 years but within 4 years
|
|
|
1,193,893
|
|
|
|
1,104,547
|
|
Due after 4 years but within 5 years
|
|
|
425,958
|
|
|
|
421,918
|
|
Due after 5 years
|
|
|
2,322,376
|
|
|
|
2,422,400
|
|
Total senior bonds
|
|
|
7,623,579
|
|
|
|
7,198,865
|
|
The detail of mortgage bonds per currency
is the following:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Mortgage bonds in UF
|
|
|
92,099
|
|
|
|
94,921
|
|
Total mortgage bonds
|
|
|
92,099
|
|
|
|
94,921
|
|
|
i.
|
Placement
of Mortgage bonds
|
As of March 31, 2019, the Bank has not placed any mortgage
bonds.
During 2018 the Bank did not place any mortgage bonds.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
72
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL
LIABILITIES, continued
|
ii.
|
Maturities
of mortgage bonds is as follows:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Due within 1 year
|
|
|
6,434
|
|
|
|
4,833
|
|
Due after 1 year but within 2 years
|
|
|
7,699
|
|
|
|
7,758
|
|
Due after 2 years but within 3 years
|
|
|
7,947
|
|
|
|
8,008
|
|
Due after 3 years but within 4 years
|
|
|
8,204
|
|
|
|
8,267
|
|
Due after 4 years but within 5 years
|
|
|
8,468
|
|
|
|
8,534
|
|
Due after 5 years
|
|
|
53,347
|
|
|
|
57,521
|
|
Total mortgage bonds
|
|
|
92,099
|
|
|
|
94,921
|
|
Detail of subordinated bonds per currency
is as follows:
|
|
As of
March
31,
|
|
|
As of
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Subordinated bonds denominated in Ch$
|
|
|
1
|
|
|
|
1
|
|
Subordinated bonds denominated in USD
|
|
|
-
|
|
|
|
-
|
|
Subordinated bonds denominated in UF
|
|
|
795,242
|
|
|
|
795,956
|
|
Total subordinated bonds
|
|
|
795,243
|
|
|
|
795,957
|
|
|
i.
|
Placement
of subordinated bonds
|
As of March 31, 2019, the Bank has not placed any mortgage
bonds.
During 2018 the Bank did not place any
mortgage bonds.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
73
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 16
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
March
31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Non-current portion:
|
|
|
|
|
|
|
|
|
Due after 1 year but within 2 years
|
|
|
8,826
|
|
|
|
9,221
|
|
Due after 2 year but within 3 years
|
|
|
41
|
|
|
|
40
|
|
Due after 3 year but within 4 years
|
|
|
44
|
|
|
|
44
|
|
Due after 4 year but within 5 years
|
|
|
49
|
|
|
|
48
|
|
Due after 5 years
|
|
|
165
|
|
|
|
176
|
|
Non-current portion subtotal
|
|
|
9,125
|
|
|
|
9,529
|
|
|
|
|
|
|
|
|
|
|
Current portion:
|
|
|
|
|
|
|
|
|
Amounts due to credit card operators
|
|
|
161,391
|
|
|
|
172,425
|
|
Acceptance of letters of credit
|
|
|
15,075
|
|
|
|
2,894
|
|
Other long-term financial obligations, short-term portion
|
|
|
30,288
|
|
|
|
30,552
|
|
Current portion subtotal
|
|
|
206,754
|
|
|
|
205,871
|
|
|
|
|
|
|
|
|
|
|
Total other financial liabilities
|
|
|
215,879
|
|
|
|
215,400
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
74
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 17
MATURITY OF FINANCIAL ASSETS AND LIABILITIES
As of March 31, 2019 and December 31,
2018, the detail of the maturities of assets and liabilities is as follows:
|
|
Demand
|
|
|
Up
to
1
month
|
|
|
Between
1 and
3
months
|
|
|
Between
3
and
12
months
|
|
|
Up to 1 year
Subtotal
|
|
|
Between
1 and
3
years
|
|
|
Between
3
and
5
years
|
|
|
More
than
5
years
|
|
|
More than 1
year
Subtotal
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
1,550,598
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,550,598
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,550,598
|
|
Cash items in process of collection
|
|
|
410,616
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
410,616
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
410,616
|
|
Trading investments
|
|
|
-
|
|
|
|
-
|
|
|
|
14
|
|
|
|
514
|
|
|
|
528
|
|
|
|
36,326
|
|
|
|
8,315
|
|
|
|
49,639
|
|
|
|
94,280
|
|
|
|
94,808
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
5,015
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,015
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,015
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
|
66,978
|
|
|
|
128,143
|
|
|
|
317,365
|
|
|
|
512,486
|
|
|
|
777,582
|
|
|
|
542,185
|
|
|
|
1,150,977
|
|
|
|
2,470,744
|
|
|
|
2,983,230
|
|
Interbank loans (1)
|
|
|
-
|
|
|
|
22,461
|
|
|
|
2,804
|
|
|
|
1,201
|
|
|
|
26,466
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
26,466
|
|
Loans and accounts receivables from customers (2)
|
|
|
23,743
|
|
|
|
3,374,390
|
|
|
|
2,666,339
|
|
|
|
4,704,198
|
|
|
|
10,768,670
|
|
|
|
5,588,736
|
|
|
|
3,251,809
|
|
|
|
10,964,579
|
|
|
|
19,805,124
|
|
|
|
30,573,794
|
|
Available for sale investments
|
|
|
-
|
|
|
|
476,764
|
|
|
|
5,546
|
|
|
|
19,119
|
|
|
|
501,429
|
|
|
|
1,165,301
|
|
|
|
537,926
|
|
|
|
594,388
|
|
|
|
2,297,615
|
|
|
|
2,799,044
|
|
Held to maturity investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Guarantee deposits (margin accounts)
|
|
|
233,175
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
233,175
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
233,175
|
|
Total assets
|
|
|
2,218,132
|
|
|
|
3,945,608
|
|
|
|
2,802,846
|
|
|
|
5,042,397
|
|
|
|
14,008,983
|
|
|
|
7,567,945
|
|
|
|
4,340,235
|
|
|
|
12,759,583
|
|
|
|
24,667,763
|
|
|
|
38,676,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and other demand liabilities
|
|
|
8,526,343
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,526,343
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,526,343
|
|
Cash items in process of collection
|
|
|
275,695
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
275,695
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
275,695
|
|
Obligations under repurchase agreements
|
|
|
-
|
|
|
|
120,935
|
|
|
|
-
|
|
|
|
-
|
|
|
|
120,935
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
120,935
|
|
Time deposits and other time liabilities
|
|
|
122,464
|
|
|
|
5,502,705
|
|
|
|
4,310,737
|
|
|
|
2,884,358
|
|
|
|
12,820,264
|
|
|
|
47,686
|
|
|
|
3,116
|
|
|
|
64,637
|
|
|
|
115,439
|
|
|
|
12,935,703
|
|
Financial derivatives contracts
|
|
|
-
|
|
|
|
79,038
|
|
|
|
109,483
|
|
|
|
379,100
|
|
|
|
567,621
|
|
|
|
443,102
|
|
|
|
470,296
|
|
|
|
1,065,322
|
|
|
|
1,978,720
|
|
|
|
2,546,341
|
|
Interbank borrowings
|
|
|
13,079
|
|
|
|
25,448
|
|
|
|
115,481
|
|
|
|
1,399,451
|
|
|
|
1,553,459
|
|
|
|
181,404
|
|
|
|
-
|
|
|
|
-
|
|
|
|
181,404
|
|
|
|
1,734,863
|
|
Issued debts instruments
|
|
|
-
|
|
|
|
304,926
|
|
|
|
228,099
|
|
|
|
802,645
|
|
|
|
1,335,670
|
|
|
|
2,384,631
|
|
|
|
1,642,251
|
|
|
|
3,171,668
|
|
|
|
7,198,551
|
|
|
|
8,534,221
|
|
Other financial liabilities
|
|
|
168,232
|
|
|
|
13,551
|
|
|
|
1,823
|
|
|
|
23,148
|
|
|
|
206,754
|
|
|
|
8,867
|
|
|
|
93
|
|
|
|
165
|
|
|
|
9,125
|
|
|
|
215,879
|
|
Guarantees received (margin accounts)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
462
|
|
|
|
462
|
|
|
|
10,341
|
|
|
|
20,025
|
|
|
|
124,011
|
|
|
|
154,377
|
|
|
|
154,839
|
|
Total liabilities
|
|
|
512,903
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
512,903
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
512,903
|
|
|
(1)
|
Interbank loans
are presented on a gross basis. The amount of allowances is Ch$18 million,
|
|
(2)
|
Loans and accounts
receivables from customers are presented on a gross basis. Provisions on loans amounts
according to customer type are the following: Commercial loans Ch$464,155 million, Mortgage
loans Ch$68,876 million and Consumer loans Ch$277,341 million.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
75
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 17
MATURITY OF FINANCIAL ASSETS AND LIABILITIES, continued
|
|
Demand
|
|
|
Up
to
1
month
|
|
|
Between
1 and
3
months
|
|
|
Between
3
and
12
months
|
|
|
Up to 1 year
Subtotal
|
|
|
Between
1 and
3
years
|
|
|
Between
3
and
5
years
|
|
|
More
than
5
years
|
|
|
More than 1
year
Subtotal
|
|
|
Total
|
|
As of December 31, 2018
|
|
MCh$
|
|
|
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
|
|
|
-
|
|
|
|
2,394,329
|
|
|
|
-
|
|
|
|
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 customer type of loan are the following: Commercial loans for Ch$472,876 million,
Mortgage loans for Ch$64,241 million and Consumer loans for Ch$259,442 million.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
76
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 18
PROVISIONS
|
a)
|
As of March 31, 2019 and December
31, 2018, the detail for the provisions is as follows:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Provision for employee salaries and expenses
|
|
|
63,870
|
|
|
|
93,379
|
|
Provision for mandatory dividends
|
|
|
215,200
|
|
|
|
177,571
|
|
Provision for contingent loan risks:
|
|
|
|
|
|
|
|
|
Provision for lines of credit of immediate disponibility
|
|
|
14,667
|
|
|
|
14,177
|
|
Other provisions for contingent loans
|
|
|
15,996
|
|
|
|
15,230
|
|
Provision for contingencies
|
|
|
11,515
|
|
|
|
8,963
|
|
Additonal provisions
|
|
|
20,000
|
|
|
|
20,000
|
|
Provision for foreign bank loans
|
|
|
575
|
|
|
|
620
|
|
Total
|
|
|
341,823
|
|
|
|
329,940
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
77
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 19
OTHER LIABILITIES
Other liabilities consist of:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Accounts and notes payable
|
|
|
195,204
|
|
|
|
163,216
|
|
Income received in advance
|
|
|
670
|
|
|
|
673
|
|
Adjustment due to macro-hedging valuation
|
|
|
10,722
|
|
|
|
7,039
|
|
Guarantees received (margin accounts) (1)
|
|
|
512,903
|
|
|
|
540,091
|
|
Notes payable through brokerage and simultaneous transactions
|
|
|
17,787
|
|
|
|
50,807
|
|
Other payable obligations
|
|
|
78,971
|
|
|
|
94,779
|
|
Withheld VAT
|
|
|
2,010
|
|
|
|
1,990
|
|
Accounts payable by insurance companies
|
|
|
8,542
|
|
|
|
8,424
|
|
Other liabilities
|
|
|
25,661
|
|
|
|
33,389
|
|
Total
|
|
|
852,470
|
|
|
|
900,408
|
|
|
(1)
|
Guarantee deposits (margin accounts)
correspond to collaterals associated with derivative financial contracts to mitigate
the counterparty credit risk and are mainly established in cash. These guarantees operate
when the mark to market from derivative financial instruments exceed the levels of threshold
agreed in the contracts, which could result in a delivery or reception of collateral
for the Bank.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
78
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 20
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 March
31, 2019, the Bank and its subsidiaries have provisions for this item for Ch$883 million and Ch$118 million, respectively (Ch$923
million and Ch$0 million as of December 31, 2018) which is included in “Provisions” in the Consolidated Statement
of Financial Position as provisions for contingencies.
As of March 31, 2019, the following legal
situations are pending:
Santander Corredores de Bolsa Limitada
The case "Echeverría with
Santander Corredora" (currently Santander Corredores de Bolsa Ltda.), followed before the 21st Civil Court of Santiago, Case
C-21,366-2014, on compensation for damages for faults in the purchase of shares. With regard to its actual situation as of December
31, 2018, Santander Corredores de Bolsa Limitada requested the Court to declare the proceeding abandoned due to the pending actions
of the plaintiff, a situation that is pending for the Court to resolve.
Santander Corredora de Seguros Limitada
There are lawsuits amounting to UF3,790
corresponding to processes mainly for goods delivered in leasing. Our lawyers have not estimated additional material losses for
these trials.
To meet customer needs, the Bank acquired
several irrevocable commitments and contingent liabilities, although these obligations should not be recognized in the Consolidated
Statement of Financial Position, these contain credit risks and are therefore part of the Bank's overall risk.
The following table shows the Bank’s
contractual obligations to issue loans:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Letters of credit issued
|
|
|
159,753
|
|
|
|
223,420
|
|
Foreign letters of credit confirmed
|
|
|
37,994
|
|
|
|
57,038
|
|
Performance guarantees
|
|
|
1,731,043
|
|
|
|
1,954,205
|
|
Personal guarantees
|
|
|
341,751
|
|
|
|
133,623
|
|
Subtotal
|
|
|
2,270,541
|
|
|
|
2,368,286
|
|
On demand credit lines
|
|
|
8,745,864
|
|
|
|
8,997,650
|
|
Other irrevocable credit commitments
|
|
|
298,087
|
|
|
|
327,297
|
|
Total
|
|
|
11,314,492
|
|
|
|
11,693,223
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
79
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 20
CONTINGENCIES AND COMMITMENTS
,
continued
The Bank holds securities in the normal
course of its business as follows:
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Third party operations
|
|
|
|
|
|
|
|
|
Collections
|
|
|
108,747
|
|
|
|
99,784
|
|
Transferred financial assets managed by the Bank
|
|
|
24619
|
|
|
|
26,262
|
|
Assets from third parties managed
by the Bank and its affiliates (1)
|
|
|
1,650,305
|
|
|
|
1,630,431
|
|
Subtotal
|
|
|
1,783,671
|
|
|
|
1,756,477
|
|
Custody of securities
|
|
|
|
|
|
|
|
|
Securities held in custody
|
|
|
11,682,859
|
|
|
|
11,160,488
|
|
Securities held in custody deposited in other entity
|
|
|
868,665
|
|
|
|
861,405
|
|
Issued securities held in custody
|
|
|
12,104,633
|
|
|
|
12,335,871
|
|
Subtotal
|
|
|
24,656,157
|
|
|
|
24,357,764
|
|
Total
|
|
|
26,439,828
|
|
|
|
26,114,241
|
|
(1) The Bank classified the portfolios
managed by private banking in “Assets from third parties managed by the Bank and its affiliates”, as of March 31,
2019, the balance for this was Ch$1,650,270 million (Ch$1,630,396 million at December 31, 2018).
Banco Santander Chile has an integral
bank policy of coverage of Official Loyalty N °4505199 in force with the company Compañía de Seguros Chilena
Consolidada SA, Coverage for 50,000,000 USD per claim with an annual limit of 100,000,000 USD, which covers both the Bank and
its subsidiaries, with an expiration date of June 30, 2019.
Santander Agente de Valores Limitada
In order to ensure the correct and full
compliance of all its obligations as securities agent in accordance with the provisions of articles N° 30 and following of
Law N° 18,045, on Stock Market, the company constituted a guarantee for 4,000 UF with insurance policy N° 216113821 taken
with the Insurance Company of Crédito Continental S.A. and whose maturity is December 19, 2019.
Santander Corredores de Bolsa Limitada
i) As of March 31, 2019, the Company has
comprehensive guarantees in the Santiago Stock Exchange to cover simultaneous operations carried out through its own portfolio
for a total of Ch$ 21,321 (Ch$ 40,427 as of December 31, 2018).
ii) Additionally, as of March 31, 2019,
the Company holds a guarantee in CCLV Contraparte Central S.A., in cash, for an amount of Ch$ 5,976 (Ch$ 5,000 as of December
31, 2018).
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$ 1,017 as of March 31, 2019 (Ch$ 1,009 as of December 31, 2018).
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
80
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 20
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° 4619574, which covers 500 UF, and the professional liability policy for insurance brokers N° 4619581 for an
amount equivalent to UF60,000, were contracted with the Compañía de Seguros Generales Chilena Consolidada S.A. both
are valid from April 15, 2018 to April 14, 2019.
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. This amounts to 10,000 UF for each
portfolio respectively, both with an expiration date 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, which amounts to 200 UF and 10,000 UF with the
same financial institution, both with an expiration date as of December 31, 2020.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
81
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 21
EQUITY
As of March 31, 2019 and December 31,
2018 the Bank had 188,446,126,794 shares outstanding amounting to Ch$ 891,303 million. All of which are subscribed for and paid
in full. All shares have the same rights, and have no preferences or restrictions.
The movement in shares for the period
of March 31, 2019 and December 31, 2018 is the following:
|
|
Shares
|
|
|
|
As of March 31,
|
|
|
As of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
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 March 31, 2019 and December 31,
2018 the Bank does not own any of its shares in treasury, nor do any of the consolidated companies.
As of March 31, 2019 the shareholder composition
is the following:
Corporate Name or Shareholder`s Name
|
|
Shares
|
|
|
ADRs (*)
|
|
|
Total
|
|
|
% of equity
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
|
|
|
-
|
|
|
|
26,833,969,671
|
|
|
|
26,833,969,671
|
|
|
|
14,24
|
|
Banks on behalf of third parties
|
|
|
15,455,514,414
|
|
|
|
-
|
|
|
|
15,455,514,414
|
|
|
|
8,20
|
|
Pension funds (AFP) on behalf of third parties
|
|
|
8,806,628,787
|
|
|
|
-
|
|
|
|
8,806,628,787
|
|
|
|
4,67
|
|
Stock brokers on behalf of third parties
|
|
|
4,466,968,277
|
|
|
|
-
|
|
|
|
4,466,968,277
|
|
|
|
2,37
|
|
Other minority holders
|
|
|
6,290,044,377
|
|
|
|
-
|
|
|
|
6,290,044,377
|
|
|
|
3,34
|
|
Total
|
|
|
161,612,157,123
|
|
|
|
26,833,969,671
|
|
|
|
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 Interim Financial Statements March 2019 / Banco Santander Chile
82
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 21
EQUITY, continued
As of December 31, 2018 the shareholder
composition is the following:
Corporate Name or Shareholder`s Name
|
|
Shares
|
|
|
ADRs (*)
|
|
|
Total
|
|
|
% of equity
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
|
|
|
|
-
|
|
|
|
14.05
|
|
Banks on behalf of third parties
|
|
|
15,451,106,985
|
|
|
|
-
|
|
|
|
15,451,106,985
|
|
|
|
8.20
|
|
Pension fund (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,
The distribution of dividends has been disclosed in the Consolidated
Statements of Changes in Equity.
|
c)
|
Diluted
earnings per share and basic earnings per share
|
As of March 31, 2019 and December 31, 2018, the composition
of diluted earnings per share and basic earnings per share are as follows:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
a) Basic earnings per share
|
|
|
|
|
|
|
|
|
Total attributable to equity holders of the Bank
|
|
|
125,430
|
|
|
|
151,016
|
|
Weighted average number of outstanding shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
Basic earnings per share (in Ch$)
|
|
|
0.666
|
|
|
|
0.801
|
|
|
|
|
|
|
|
|
|
|
b) Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total attributable to equity holders of the Bank
|
|
|
125,430
|
|
|
|
151,016
|
|
Weighted average number of outstanding shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
Assumed conversion of convertible debt
|
|
|
-
|
|
|
|
-
|
|
Adjusted number of shares
|
|
|
188,446,126,794
|
|
|
|
188,446,126,794
|
|
Diluted earnings per share (in Ch$)
|
|
|
0.666
|
|
|
|
0.801
|
|
As of March 31, 2019 and December 31, 2018, the Bank
does not own instruments with dilutive effects.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
83
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 21
EQUITY, continued
|
d)
|
Other comprehensive
income of available for sale investments and cash flow hedges:
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Available for sale investments
|
|
|
|
|
|
|
|
|
As of January 1,
|
|
|
6,424
|
|
|
|
1,855
|
|
Gain (losses) on the re-valuation of available for sale investments, before tax
|
|
|
1,963
|
|
|
|
6,071
|
|
Reclassification from other comprehensive income to net income for the year
|
|
|
-
|
|
|
|
-
|
|
Net income realized
|
|
|
7,714
|
|
|
|
(1,502
|
)
|
Subtotal
|
|
|
9,677
|
|
|
|
4,569
|
|
Total
|
|
|
16,101
|
|
|
|
6,424
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
As of January 1,
|
|
|
9,803
|
|
|
|
(3,562
|
)
|
Gains (losses) on the re-valuation of cash flow hedges, before tax
|
|
|
(17,056
|
)
|
|
|
14,048
|
|
Reclassification and adjustments on cash flow hedges, before tax
|
|
|
(222
|
)
|
|
|
(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
|
|
|
(17,278
|
)
|
|
|
13,365
|
|
Total
|
|
|
(7,475
|
)
|
|
|
9,803
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, before tax
|
|
|
8,625
|
|
|
|
16,227
|
|
|
|
|
|
|
|
|
|
|
Income tax related to other comprehensive income components
|
|
|
|
|
|
|
|
|
Income tax relating to available for sale investments
|
|
|
(4,348
|
)
|
|
|
(1,735
|
)
|
Income tax relating to cash flow hedges
|
|
|
2,020
|
|
|
|
(2,646
|
)
|
Total
|
|
|
(2,328
|
)
|
|
|
(4,381
|
)
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax
|
|
|
6,297
|
|
|
|
11,846
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
Equity holders of the Bank
|
|
|
5,341
|
|
|
|
10,890
|
|
Non-controlling interest
|
|
|
956
|
|
|
|
956
|
|
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 Interim Financial Statements March 2019 / Banco Santander Chile
84
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 22
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 Interim Financial Statements March 2019 / Banco Santander Chile
85
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 22
CAPITAL REQUIREMENTS (BASEL), continued
The levels of basic capital and effective net equity as of
March 31, 2019 and December 31, 2018, are the following:
|
|
Consolidated assets
|
|
|
Risk-weighted assets
|
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance-sheet assets (net of allowances)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
1,550,598
|
|
|
|
2,065,441
|
|
|
|
-
|
|
|
|
-
|
|
Cash in process of collection
|
|
|
410,616
|
|
|
|
353,757
|
|
|
|
86,779
|
|
|
|
105,421
|
|
Trading investments
|
|
|
94,808
|
|
|
|
77,041
|
|
|
|
36,576
|
|
|
|
10,704
|
|
Investments under resale agreements
|
|
|
5,015
|
|
|
|
-
|
|
|
|
5,015
|
|
|
|
-
|
|
Financial derivative contracts (*)
|
|
|
905,285
|
|
|
|
1,226,892
|
|
|
|
564,888
|
|
|
|
868,578
|
|
Interbank loans, net
|
|
|
26,414
|
|
|
|
15,065
|
|
|
|
26,414
|
|
|
|
15,064
|
|
Loans and accounts receivables from customers, net
|
|
|
29,779,287
|
|
|
|
29,470,370
|
|
|
|
25,638,750
|
|
|
|
25,403,426
|
|
Available for sale investment
|
|
|
2,799,044
|
|
|
|
2,394,323
|
|
|
|
162,338
|
|
|
|
172,859
|
|
Investments in associates and other companies
|
|
|
33,098
|
|
|
|
32,293
|
|
|
|
33,098
|
|
|
|
32,293
|
|
Intangible assets
|
|
|
63,302
|
|
|
|
66,923
|
|
|
|
63,302
|
|
|
|
66,923
|
|
Property, plant, and equipment
|
|
|
201,093
|
|
|
|
253,586
|
|
|
|
201,093
|
|
|
|
253,586
|
|
Right of use assets
|
|
|
199,529
|
|
|
|
-
|
|
|
|
199,529
|
|
|
|
-
|
|
Current taxes
|
|
|
10,195
|
|
|
|
-
|
|
|
|
1,020
|
|
|
|
-
|
|
Deferred taxes
|
|
|
416,922
|
|
|
|
382,934
|
|
|
|
41,692
|
|
|
|
38,293
|
|
Other assets
|
|
|
1,094,414
|
|
|
|
984,988
|
|
|
|
1,087,845
|
|
|
|
983,299
|
|
Off-balance-sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans
|
|
|
4,586,600
|
|
|
|
4,624,073
|
|
|
|
2,644,691
|
|
|
|
2,649,730
|
|
Total
|
|
|
42,176,220
|
|
|
|
41,947,686
|
|
|
|
30,793,030
|
|
|
|
30,600,176
|
|
|
(*)
|
“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
March
31,
|
|
|
As of
December 31,
|
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
%
|
|
|
%
|
|
Basic capital
|
|
|
3,321,798
|
|
|
|
3,239,546
|
|
|
|
7.88
|
|
|
|
7.72
|
|
Effective net equity
|
|
|
4,183,431
|
|
|
|
4,101,664
|
|
|
|
13.59
|
|
|
|
13.40
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
86
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 23
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
controlling
interest
|
|
|
Equity
|
|
|
Income
|
|
|
Available for
sale
investments
|
|
|
Deferred
tax
|
|
|
Total other
comprehensive
income
|
|
|
Comprehensive
income
|
|
As of March 31, 2019
|
|
%
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
0.25
|
|
|
|
173
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
Santander Corredores de Bolsa Limitada
|
|
|
49.41
|
|
|
|
21,736
|
|
|
|
64
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
64
|
|
Santander Agente de Valores Limitada
|
|
|
0.97
|
|
|
|
490
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
Santander S.A. Sociedad Securitizadora
|
|
|
0.36
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
|
|
|
|
22,401
|
|
|
|
67
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entities controlled through other considerations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Gestión de Recaudación y Cobranzas Limitada
|
|
|
100.00
|
|
|
|
3,904
|
|
|
|
127
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
127
|
|
Bansa Santander S.A. (1)
|
|
|
100.00
|
|
|
|
20,086
|
|
|
|
35
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
35
|
|
Subtotal
|
|
|
|
|
|
|
23,990
|
|
|
|
162
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
46,391
|
|
|
|
229
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
Non-
controlling
interest
|
|
|
Equity
|
|
|
Income
|
|
|
Available for
sale
investments
|
|
|
Deferred
tax
|
|
|
Total other
comprehensive
income
|
|
|
Comprehensive
income
|
|
As of March 31, 2018
|
|
%
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
0.25
|
|
|
|
169
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
Santander Corredores de Bolsa Limitada
|
|
|
49.41
|
|
|
|
21,075
|
|
|
|
122
|
|
|
|
(37
|
)
|
|
|
(11
|
)
|
|
|
(48
|
)
|
|
|
74
|
|
Santander Agente de Valores Limitada
|
|
|
0.97
|
|
|
|
426
|
|
|
|
38
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38
|
|
Santander S.A. Sociedad Securitizadora
|
|
|
0.36
|
|
|
|
1
|
|
|
|
161
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Subtotal
|
|
|
|
|
|
|
21,671
|
|
|
|
161
|
|
|
|
(37
|
)
|
|
|
(11
|
)
|
|
|
(48
|
)
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entities controlled through other considerations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Gestión de Recaudación y Cobranzas Limitada
|
|
|
100.00
|
|
|
|
3,366
|
|
|
|
441
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
441
|
|
Bansa Santander S.A. (1)
|
|
|
100.00
|
|
|
|
17,576
|
|
|
|
175
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
175
|
|
Subtotal
|
|
|
|
|
|
|
20,942
|
|
|
|
616
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
42,613
|
|
|
|
777
|
|
|
|
(37
|
)
|
|
|
(11
|
)
|
|
|
(48
|
)
|
|
|
729
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
87
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 23
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 March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Capital
|
|
|
Income
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Capital
|
|
|
Income
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santander Corredora de Seguros Limitada
|
|
|
79,003
|
|
|
|
10,542
|
|
|
|
68,169
|
|
|
|
292
|
|
|
|
77,761
|
|
|
|
9,595
|
|
|
|
66,374
|
|
|
|
1,795
|
|
Santander Corredores de Bolsa Limitada
|
|
|
89,932
|
|
|
|
45,574
|
|
|
|
44,229
|
|
|
|
129
|
|
|
|
102,228
|
|
|
|
57,999
|
|
|
|
42,691
|
|
|
|
1,538
|
|
Santander Agente de Valores Limitada
|
|
|
54,255
|
|
|
|
3,618
|
|
|
|
50,481
|
|
|
|
156
|
|
|
|
50,552
|
|
|
|
71
|
|
|
|
40,177
|
|
|
|
10,304
|
|
Santander S.A. Sociedad Securitizadora
|
|
|
688
|
|
|
|
65
|
|
|
|
639
|
|
|
|
(16
|
)
|
|
|
704
|
|
|
|
66
|
|
|
|
728
|
|
|
|
(90
|
)
|
Santander Gestión de Recaudación y Cobranzas Ltda.
|
|
|
6,681
|
|
|
|
2,777
|
|
|
|
3,777
|
|
|
|
127
|
|
|
|
6,932
|
|
|
|
3,155
|
|
|
|
2,925
|
|
|
|
852
|
|
Bansa Santander S.A.
|
|
|
25,565
|
|
|
|
5,479
|
|
|
|
20,051
|
|
|
|
35
|
|
|
|
20,437
|
|
|
|
386
|
|
|
|
17,401
|
|
|
|
2,650
|
|
Total
|
|
|
256,124
|
|
|
|
68,055
|
|
|
|
187,346
|
|
|
|
723
|
|
|
|
258,617
|
|
|
|
71,272
|
|
|
|
170,296
|
|
|
|
17,049
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
88
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 24
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)
|
As of March
31, 2019 and 2018, the income from interest income, not including income from hedge accounting,
is attributable to the following items:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Prepaid
fees
|
|
|
Total
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Prepaid
fees
|
|
|
Total
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resale agreements
|
|
|
192
|
|
|
|
-
|
|
|
|
-
|
|
|
|
192
|
|
|
|
241
|
|
|
|
-
|
|
|
|
-
|
|
|
|
241
|
|
Interbank loans
|
|
|
112
|
|
|
|
-
|
|
|
|
-
|
|
|
|
112
|
|
|
|
554
|
|
|
|
-
|
|
|
|
-
|
|
|
|
554
|
|
Commercial loans
|
|
|
196,856
|
|
|
|
397
|
|
|
|
2,472
|
|
|
|
199,725
|
|
|
|
183,256
|
|
|
|
32,760
|
|
|
|
3,534
|
|
|
|
219,550
|
|
Mortgage loans
|
|
|
85,465
|
|
|
|
887
|
|
|
|
109
|
|
|
|
86,461
|
|
|
|
79,251
|
|
|
|
56,719
|
|
|
|
111
|
|
|
|
136,081
|
|
Consumer loans
|
|
|
145,730
|
|
|
|
37
|
|
|
|
1,781
|
|
|
|
147,548
|
|
|
|
145,459
|
|
|
|
101
|
|
|
|
1,367
|
|
|
|
146,927
|
|
Investment instruments
|
|
|
18,902
|
|
|
|
(42
|
)
|
|
|
-
|
|
|
|
18,860
|
|
|
|
17,818
|
|
|
|
5,917
|
|
|
|
-
|
|
|
|
23,735
|
|
Other interest income
|
|
|
4,328
|
|
|
|
(65
|
)
|
|
|
-
|
|
|
|
4,263
|
|
|
|
3,241
|
|
|
|
306
|
|
|
|
-
|
|
|
|
3,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income without income from hedge accounting
|
|
|
451,585
|
|
|
|
1,214
|
|
|
|
4,362
|
|
|
|
457,161
|
|
|
|
429,820
|
|
|
|
95,803
|
|
|
|
5,012
|
|
|
|
530,635
|
|
|
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 March 31, 2019 and December 31,
2018, the suspended interest and adjustments income consists of the following:
|
|
As of March 31,
|
|
|
As of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Total
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Total
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
13,705
|
|
|
|
8,238
|
|
|
|
21,943
|
|
|
|
13,453
|
|
|
|
8,904
|
|
|
|
22,357
|
|
Mortgage loans
|
|
|
3,064
|
|
|
|
5,283
|
|
|
|
8,347
|
|
|
|
3,030
|
|
|
|
6,304
|
|
|
|
9,334
|
|
Consumer loans
|
|
|
4,029
|
|
|
|
301
|
|
|
|
4,330
|
|
|
|
4,172
|
|
|
|
333
|
|
|
|
4,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
20,798
|
|
|
|
13,822
|
|
|
|
34,620
|
|
|
|
20,655
|
|
|
|
15,541
|
|
|
|
36,196
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
89
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 24
INTEREST INCOME, continued
|
c)
|
As of March
31, 2019 and 2018, the expenses from interest expense, excluding expense from hedge accounting,
are as follows:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Total
|
|
|
Interest
|
|
|
Inflation
adjustments
|
|
|
Total
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
(3,212
|
)
|
|
|
4
|
|
|
|
(3,208
|
)
|
|
|
(2,694
|
)
|
|
|
(253
|
)
|
|
|
(2,947
|
)
|
Repurchase agreements
|
|
|
(1,696
|
)
|
|
|
-
|
|
|
|
(1,696
|
)
|
|
|
(888
|
)
|
|
|
-
|
|
|
|
(888
|
)
|
Time deposits and liabilities
|
|
|
(88,108
|
)
|
|
|
153
|
|
|
|
(87,955
|
)
|
|
|
(76,070
|
)
|
|
|
(7,792
|
)
|
|
|
(83,862
|
)
|
Interbank borrowings
|
|
|
(12,699
|
)
|
|
|
-
|
|
|
|
(12,699
|
)
|
|
|
(7,015
|
)
|
|
|
-
|
|
|
|
(7,015
|
)
|
Issued debt instruments
|
|
|
(59,933
|
)
|
|
|
(97
|
)
|
|
|
(60,030
|
)
|
|
|
(55,834
|
)
|
|
|
(28,806
|
)
|
|
|
(84,640
|
)
|
Other financial liabilities
|
|
|
(316
|
)
|
|
|
-
|
|
|
|
(316
|
)
|
|
|
(718
|
)
|
|
|
(14
|
)
|
|
|
(732
|
)
|
Other interest expense
|
|
|
(755
|
)
|
|
|
-
|
|
|
|
(755
|
)
|
|
|
(1,835
|
)
|
|
|
(2,102
|
)
|
|
|
(3,937
|
)
|
Interest expense without expenses from hedge accounting
|
|
|
(2,650
|
)
|
|
|
(145
|
)
|
|
|
(2,795
|
)
|
|
|
(145,054
|
)
|
|
|
(38,967
|
)
|
|
|
(184,021
|
)
|
|
d)
|
As of March
31, 2019 and 2018, the income and expense from interest is as follows:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Items
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Interest income less income from hedge accounting
|
|
|
457,161
|
|
|
|
530,635
|
|
Interest expense less expense from hedge accounting
|
|
|
(169,454
|
)
|
|
|
(184,021
|
)
|
|
|
|
|
|
|
|
|
|
Net Interest income (expense) from hedge accounting
|
|
|
287,707
|
|
|
|
346,614
|
|
|
|
|
|
|
|
|
|
|
Hedge accounting (net)
|
|
|
34,994
|
|
|
|
101
|
|
|
|
|
|
|
|
|
|
|
Total net interest income
|
|
|
322,701
|
|
|
|
346,715
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
90
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 25
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 March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Fee and commission income
|
|
|
|
|
|
|
|
|
Fees and commissions for lines of credits and overdrafts
|
|
|
1,560
|
|
|
|
1,528
|
|
Fees and commissions for guarantees and letters of credit
|
|
|
8,731
|
|
|
|
8,136
|
|
Fees and commissions for card services
|
|
|
56,154
|
|
|
|
59,508
|
|
Fees and commissions for management of accounts
|
|
|
8,829
|
|
|
|
8,254
|
|
Fees and commissions for collections and payments
|
|
|
8,349
|
|
|
|
8,928
|
|
Fees and commissions for intermediation and management of securities
|
|
|
2,467
|
|
|
|
2,439
|
|
Fees and commissions for insurance marketing
|
|
|
11,021
|
|
|
|
8,941
|
|
Office banking
|
|
|
3,277
|
|
|
|
3,912
|
|
Fees for other services rendered
|
|
|
11,000
|
|
|
|
11,206
|
|
Other fees earned
|
|
|
9,978
|
|
|
|
11,302
|
|
Total
|
|
|
121,366
|
|
|
|
124,154
|
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Fee and commission expense
|
|
|
|
|
|
|
|
|
Compensation for card operations
|
|
|
(41,544
|
)
|
|
|
(44,288
|
)
|
Fees and commissions for securities transactions
|
|
|
(270
|
)
|
|
|
(165
|
)
|
Office banking
|
|
|
(435
|
)
|
|
|
(4,136
|
)
|
Other fees
|
|
|
(8,442
|
)
|
|
|
(71
|
)
|
Total
|
|
|
(50,691
|
)
|
|
|
(48,660
|
)
|
|
|
|
|
|
|
|
|
|
Net fees and commissions income
|
|
|
70,675
|
|
|
|
75,494
|
|
The fees earned in transactions with letters
of credit are presented in the Consolidated Interim Statement of Income in the item “Interest income”.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
91
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 25
FEES AND COMMISSIONS, continued
|
b)
|
Income
and expenses from commissions that are generated through the different segments of the
business are presented in the following chart as well as the calendar which recognizes
ordinary activity income.
|
|
|
Segments
|
|
|
Calendar
recognizing ordinary activity income
|
|
|
|
Retail
Banking
|
|
|
Middle
Market
|
|
|
Global
Corporate
Banking
|
|
|
Others
|
|
|
Total
|
|
|
Transfered
through
time
|
|
|
Transfered
in
an exact
moment
|
|
|
Accrual
model
|
|
As of
March 31, 2019
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions for lines of credits and overdrafts
|
|
|
1,484
|
|
|
|
65
|
|
|
|
10
|
|
|
|
1
|
|
|
|
1,560
|
|
|
|
1,560
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for guarantees and letters of credit
|
|
|
2,235
|
|
|
|
4,395
|
|
|
|
1,592
|
|
|
|
9
|
|
|
|
8,731
|
|
|
|
8,731
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for card services
|
|
|
54,302
|
|
|
|
1,580
|
|
|
|
246
|
|
|
|
26
|
|
|
|
56,154
|
|
|
|
9,655
|
|
|
|
46,499
|
|
|
|
-
|
|
Fees and commissions for management of accounts
|
|
|
8,005
|
|
|
|
621
|
|
|
|
203
|
|
|
|
-
|
|
|
|
8,829
|
|
|
|
8,829
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for collections and payments
|
|
|
9,753
|
|
|
|
353
|
|
|
|
115
|
|
|
|
(1,872
|
)
|
|
|
8,349
|
|
|
|
-
|
|
|
|
3,207
|
|
|
|
5,142
|
|
Fees and commissions for intermediation and management of securities
|
|
|
768
|
|
|
|
39
|
|
|
|
2,465
|
|
|
|
(805
|
)
|
|
|
2,467
|
|
|
|
-
|
|
|
|
2,467
|
|
|
|
-
|
|
Fees and commissions for insurance marketing
|
|
|
11,021
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,021
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,021
|
|
Office banking
|
|
|
2,222
|
|
|
|
921
|
|
|
|
134
|
|
|
|
-
|
|
|
|
3,277
|
|
|
|
-
|
|
|
|
3,277
|
|
|
|
-
|
|
Fees for other services rendered
|
|
|
9,795
|
|
|
|
902
|
|
|
|
225
|
|
|
|
78
|
|
|
|
11,000
|
|
|
|
-
|
|
|
|
11,000
|
|
|
|
-
|
|
Other fees earned
|
|
|
2,726
|
|
|
|
3,191
|
|
|
|
3,972
|
|
|
|
89
|
|
|
|
9,978
|
|
|
|
-
|
|
|
|
9,978
|
|
|
|
-
|
|
Totals
|
|
|
102,811
|
|
|
|
12,067
|
|
|
|
8,962
|
|
|
|
2,474
|
|
|
|
121,366
|
|
|
|
28,775
|
|
|
|
76,428
|
|
|
|
16,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation for card operations
|
|
|
(40,591
|
)
|
|
|
(835
|
)
|
|
|
(81
|
)
|
|
|
(37
|
)
|
|
|
(41,544
|
)
|
|
|
-
|
|
|
|
(41,544
|
)
|
|
|
-
|
|
Fees and commissions for securities transactions
|
|
|
-
|
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
(260
|
)
|
|
|
(270
|
)
|
|
|
-
|
|
|
|
(270
|
)
|
|
|
-
|
|
Office banking
|
|
|
(277
|
)
|
|
|
(91
|
)
|
|
|
(66
|
)
|
|
|
(1
|
)
|
|
|
(435
|
)
|
|
|
-
|
|
|
|
(435
|
)
|
|
|
-
|
|
Other fees
|
|
|
(4,777
|
)
|
|
|
(1,227
|
)
|
|
|
(1,221
|
)
|
|
|
(1,217
|
)
|
|
|
(8,442
|
)
|
|
|
-
|
|
|
|
(8,442
|
)
|
|
|
-
|
|
Totals
|
|
|
(45,645
|
)
|
|
|
(2,153
|
)
|
|
|
(1,378
|
)
|
|
|
(1,515
|
)
|
|
|
(50,691
|
)
|
|
|
-
|
|
|
|
(50,691
|
)
|
|
|
-
|
|
Net fees and commissions
income
|
|
|
57,166
|
|
|
|
9,914
|
|
|
|
7,584
|
|
|
|
(3,989
|
)
|
|
|
70,675
|
|
|
|
28,775
|
|
|
|
25,737
|
|
|
|
16,163
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
92
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 25
FEES AND COMMISSIONS, continued
Income and expenses from
commissions that are generated through the different segments of the business are presented in the following chart as well as
the calendar which recognizes ordinary activity income, continued:
|
|
Segments
|
|
|
Calendar
recognizing ordinary activity income
|
|
|
|
Retail
Banking
|
|
|
Middle
Market
|
|
|
Global
Corporate
Banking
|
|
|
Others
|
|
|
Total
|
|
|
Transfered
through
time
|
|
|
Transfered
in
an exact
moment
|
|
|
Accrual
model
|
|
As of
March 31, 2018
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
MM$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions for lines of credits and overdrafts
|
|
|
1,437
|
|
|
|
41
|
|
|
|
52
|
|
|
|
(2
|
)
|
|
|
1,528
|
|
|
|
1,528
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for guarantees and letters of credit
|
|
|
2,665
|
|
|
|
3,832
|
|
|
|
1,610
|
|
|
|
29
|
|
|
|
8,136
|
|
|
|
8,136
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for card services
|
|
|
57,267
|
|
|
|
1,893
|
|
|
|
324
|
|
|
|
24
|
|
|
|
59,508
|
|
|
|
8,133
|
|
|
|
51,375
|
|
|
|
-
|
|
Fees and commissions for management of accounts
|
|
|
7,450
|
|
|
|
619
|
|
|
|
185
|
|
|
|
-
|
|
|
|
8,254
|
|
|
|
8,254
|
|
|
|
-
|
|
|
|
-
|
|
Fees and commissions for collections and payments
|
|
|
15,262
|
|
|
|
279
|
|
|
|
133
|
|
|
|
(6,747
|
)
|
|
|
8,928
|
|
|
|
-
|
|
|
|
4,294
|
|
|
|
4,634
|
|
Fees and commissions for intermediation and management of securities
|
|
|
1,174
|
|
|
|
5
|
|
|
|
1,379
|
|
|
|
(119
|
)
|
|
|
2,439
|
|
|
|
-
|
|
|
|
2,439
|
|
|
|
-
|
|
Fees and commissions for insurance marketing
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,941
|
|
|
|
8,941
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,941
|
|
Office banking
|
|
|
2,846
|
|
|
|
946
|
|
|
|
120
|
|
|
|
-
|
|
|
|
3,912
|
|
|
|
-
|
|
|
|
3,912
|
|
|
|
-
|
|
Fees for other services rendered
|
|
|
10,018
|
|
|
|
961
|
|
|
|
215
|
|
|
|
12
|
|
|
|
11,206
|
|
|
|
-
|
|
|
|
11,206
|
|
|
|
-
|
|
Other fees earned
|
|
|
1,412
|
|
|
|
2,337
|
|
|
|
7,369
|
|
|
|
184
|
|
|
|
11,302
|
|
|
|
-
|
|
|
|
11,302
|
|
|
|
-
|
|
Totals
|
|
|
99,531
|
|
|
|
10,913
|
|
|
|
11,387
|
|
|
|
2,323
|
|
|
|
124,154
|
|
|
|
26,051
|
|
|
|
84,528
|
|
|
|
13,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation for card operations
|
|
|
(39,926
|
)
|
|
|
(719
|
)
|
|
|
(76
|
)
|
|
|
(3,567
|
)
|
|
|
(44,288
|
)
|
|
|
-
|
|
|
|
(44,288
|
)
|
|
|
-
|
|
Fees and commissions for securities transactions
|
|
|
(131
|
)
|
|
|
(98
|
)
|
|
|
(114
|
)
|
|
|
178
|
|
|
|
(165
|
)
|
|
|
-
|
|
|
|
(165
|
)
|
|
|
-
|
|
Office banking
|
|
|
(2,660
|
)
|
|
|
(860
|
)
|
|
|
(610
|
)
|
|
|
(6
|
)
|
|
|
(4,136
|
)
|
|
|
-
|
|
|
|
(4,136
|
)
|
|
|
-
|
|
Other fees
|
|
|
2,364
|
|
|
|
(155
|
)
|
|
|
(92
|
)
|
|
|
(2,188
|
)
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
(71
|
)
|
|
|
-
|
|
Totals
|
|
|
(40,353
|
)
|
|
|
(1,832
|
)
|
|
|
(892
|
)
|
|
|
(5,583
|
)
|
|
|
(48,660
|
)
|
|
|
-
|
|
|
|
(48,660
|
)
|
|
|
-
|
|
Net fees and commissions
income
|
|
|
59,178
|
|
|
|
9,081
|
|
|
|
10,495
|
|
|
|
(3,260
|
)
|
|
|
75,494
|
|
|
|
26,051
|
|
|
|
35,868
|
|
|
|
13,575
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
93
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 26
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.
As of March 31, 2019 and 2018, the detail
of income from financial operations is as follows:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Profit and loss from financial operations
|
|
|
|
|
|
|
|
|
Trading derivatives
|
|
|
(182,196
|
)
|
|
|
(35,156
|
)
|
Trading investments
|
|
|
3,489
|
|
|
|
4,924
|
|
Sale of loans and accounts receivables from customers
|
|
|
|
|
|
|
|
|
Current portfolio
|
|
|
-
|
|
|
|
-
|
|
Charged-off portfolio
|
|
|
771
|
|
|
|
747
|
|
Available for sale investments
|
|
|
10,402
|
|
|
|
2,907
|
|
Repurchase of issued bonds (1)
|
|
|
(861
|
)
|
|
|
(168
|
)
|
Other profit and loss from financial operations
|
|
|
(115
|
)
|
|
|
(428
|
)
|
Total
|
|
|
(168,510
|
)
|
|
|
(27,174
|
)
|
(1) As of March 31, 2019 the Bank hasn’t made
any repurchases of bonds, see Note 3.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
94
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 27
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.
As of March 31, 2019 and 2018, net foreign
exchange income is as follows:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Net foreign exchange gain (loss)
|
|
|
|
|
|
|
|
|
Net gain (loss) from currency exchange differences
|
|
|
246,982
|
|
|
|
53,336
|
|
Hedging derivatives
|
|
|
(37,476
|
)
|
|
|
(1,702
|
)
|
Income from assets indexed to foreign currency
|
|
|
(2,151
|
)
|
|
|
(1,251
|
)
|
Income from liabilities indexed to foreign currency
|
|
|
-
|
|
|
|
12
|
|
Total
|
|
|
207,355
|
|
|
|
50,395
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
95
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 28
PROVISIONS FOR LOAN LOSSES
|
a)
|
The movement in provisions for loan
losses registered for March 31, 2019 and 2018 is the following:
|
|
|
|
|
|
Loans
and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
Interbank
loans
|
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
Contingent
loans
|
|
|
|
|
|
|
Individual
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Individual
|
|
|
Group
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Charged-off of loans
|
|
|
-
|
|
|
|
(2,862
|
)
|
|
|
(6,882
|
)
|
|
|
(3,582
|
)
|
|
|
(18,866
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(32,192
|
)
|
Provisions established
|
|
|
(28
|
)
|
|
|
(21,361
|
)
|
|
|
(20,337
|
)
|
|
|
(5,197
|
)
|
|
|
(42,757
|
)
|
|
|
(1,451
|
)
|
|
|
(455
|
)
|
|
|
(91,586
|
)
|
Total provisions and charge-offs
|
|
|
(28
|
)
|
|
|
(24,223
|
)
|
|
|
(27,219
|
)
|
|
|
(8,779
|
)
|
|
|
(61,623
|
)
|
|
|
(1,451
|
)
|
|
|
(455
|
)
|
|
|
(123,778
|
)
|
Provisions released (*)
|
|
|
5
|
|
|
|
11,982
|
|
|
|
4,700
|
|
|
|
1,912
|
|
|
|
6,943
|
|
|
|
506
|
|
|
|
145
|
|
|
|
26,193
|
|
Recovery of loans previously charged-off
|
|
|
-
|
|
|
|
2,932
|
|
|
|
3,487
|
|
|
|
4,313
|
|
|
|
10,579
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,311
|
|
Net charge to income
|
|
|
(23
|
)
|
|
|
(9,309
|
)
|
|
|
(19,032
|
)
|
|
|
(2,554
|
)
|
|
|
(44,101
|
)
|
|
|
(945
|
)
|
|
|
(310
|
)
|
|
|
(76,274
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and accounts receivable from customers
|
|
|
|
|
|
|
|
|
|
Interbank
loans
|
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
Contingent
loans
|
|
|
|
|
|
|
Individual
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Individual
|
|
|
Group
|
|
|
Total
|
|
As of March 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Charged-off of loans
|
|
|
-
|
|
|
|
(3,209
|
)
|
|
|
(5,979
|
)
|
|
|
(1,601
|
)
|
|
|
(21,906
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(32,695
|
)
|
Provisions established
|
|
|
-
|
|
|
|
(13,395
|
)
|
|
|
(21,233
|
)
|
|
|
(3,749
|
)
|
|
|
(46,660
|
)
|
|
|
(1,312
|
)
|
|
|
(664
|
)
|
|
|
(87,013
|
)
|
Total provisions and charge-offs
|
|
|
-
|
|
|
|
(16,604
|
)
|
|
|
(27,212
|
)
|
|
|
(5,350
|
)
|
|
|
(68,566
|
)
|
|
|
(1,312
|
)
|
|
|
(664
|
)
|
|
|
(119,708
|
)
|
Provisions released (*)
|
|
|
68
|
|
|
|
9,749
|
|
|
|
1,091
|
|
|
|
793
|
|
|
|
10,010
|
|
|
|
1,562
|
|
|
|
211
|
|
|
|
23,484
|
|
Recovery of loans previously charged-off
|
|
|
-
|
|
|
|
3,196
|
|
|
|
4,589
|
|
|
|
3,319
|
|
|
|
9,715
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20,819
|
|
Net charge to income
|
|
|
68
|
|
|
|
(3,659
|
)
|
|
|
(21,532
|
)
|
|
|
(1,238
|
)
|
|
|
(48,841
|
)
|
|
|
250
|
|
|
|
(453
|
)
|
|
|
(75,405
|
)
|
|
b)
|
The detail for Charge-off
to individually significant loans, is the following:
|
|
|
Loans and accounts receivable
from customers
|
|
|
|
|
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
As of March 31, 2019
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Charge-off of loans
|
|
|
9,821
|
|
|
|
23,240
|
|
|
|
7,562
|
|
|
|
57,736
|
|
|
|
98,359
|
|
Provision applied
|
|
|
(6,956
|
)
|
|
|
(16.358
|
)
|
|
|
3,980
|
)
|
|
|
(38,870
|
)
|
|
|
(66,167
|
)
|
Net charge offs of individually significant loans
|
|
|
2,862
|
|
|
|
6,882
|
|
|
|
3,582
|
|
|
|
18,866
|
|
|
|
32,192
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivables
from customers
|
|
|
|
|
|
|
Commercial
loans
|
|
|
Mortgage
loans
|
|
|
Consumer
loans
|
|
|
|
|
|
|
Individual
|
|
|
Group
|
|
|
Group
|
|
|
Group
|
|
|
Total
|
|
As of March 31, 2018
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Loan charge-off
|
|
|
10,865
|
|
|
|
20,821
|
|
|
|
4,747
|
|
|
|
64,971
|
|
|
|
101,404
|
|
Provision applied
|
|
|
(7,656
|
)
|
|
|
(14,842
|
)
|
|
|
(3,146
|
)
|
|
|
(43,065
|
)
|
|
|
(68,709
|
)
|
Net charge offs of individually significant loans
|
|
|
3,209
|
|
|
|
5,979
|
|
|
|
1,601
|
|
|
|
21,906
|
|
|
|
32,695
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
96
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 29
PERSONNEL SALARIES AND EXPENSES
|
a)
|
Composition of personnel
salaries and expenses:
|
As of March 31, 2019 and 2018, the composition
for personnel salaries and expenses is the following:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Personnel compensation
|
|
|
58,593
|
|
|
|
58,115
|
|
Bonuses or gratuities
|
|
|
18,822
|
|
|
|
20,378
|
|
Stock-based benefits
|
|
|
(132
|
)
|
|
|
(139
|
)
|
Seniority compensation
|
|
|
5,489
|
|
|
|
(305
|
)
|
Pension plans
|
|
|
(64
|
)
|
|
|
294
|
|
Training expenses
|
|
|
1,083
|
|
|
|
953
|
|
Day care and kindergarden
|
|
|
813
|
|
|
|
809
|
|
Health and welfare funds
|
|
|
1,617
|
|
|
|
1,472
|
|
Other personnel expenses
|
|
|
8,336
|
|
|
|
7,939
|
|
Total
|
|
|
94,557
|
|
|
|
89,516
|
|
Share-based compensation (settled in cash)
In accordance with IFRS 2, equity instruments
settled in cash are allocated to executives of the Bank and its Subsidiaries as a form of compensation for their services. The
Bank measures the services received and the cash obligation at fair value at the end of each reporting period and on the settlement
date, recognizing any change in fair value in the income statement for the period.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
97
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 30
ADMINISTRATIVE EXPENSES
As of March 31, 2019 and 2018, the composition
for administrative expenses is the following:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
General administrative expenses
|
|
|
33,174
|
|
|
|
37,242
|
|
Maintenance and repair of property, plant and equipment
|
|
|
4,761
|
|
|
|
5,562
|
|
Office lease
|
|
|
-
|
|
|
|
7,313
|
|
Equipment lease
|
|
|
-
|
|
|
|
28
|
|
Expenses for short-term lease agreements
|
|
|
1,672
|
|
|
|
-
|
|
Expenses for low value lease contracts
|
|
|
-
|
|
|
|
-
|
|
Other expenses of obligations for lease agreements
|
|
|
33
|
|
|
|
-
|
|
Insurance premiums
|
|
|
879
|
|
|
|
753
|
|
Office supplies
|
|
|
1,395
|
|
|
|
1,740
|
|
IT and communication expenses
|
|
|
12,325
|
|
|
|
10,083
|
|
Lighting, heating, and other utilities
|
|
|
1,273
|
|
|
|
1,415
|
|
Security and valuables transport services
|
|
|
3,736
|
|
|
|
3,395
|
|
Representation and personnel travel expenses
|
|
|
704
|
|
|
|
1,214
|
|
Judicial and notarial expenses
|
|
|
342
|
|
|
|
170
|
|
Fees for technical reports and auditing
|
|
|
2,431
|
|
|
|
2,822
|
|
Other general administrative expenses
|
|
|
3,623
|
|
|
|
2,747
|
|
Outsourced services
|
|
|
19,934
|
|
|
|
16,662
|
|
Data processing
|
|
|
8,398
|
|
|
|
8,289
|
|
Archive service
|
|
|
867
|
|
|
|
848
|
|
Valuation service
|
|
|
831
|
|
|
|
739
|
|
Outsourced staff
|
|
|
4,068
|
|
|
|
2,816
|
|
Other
|
|
|
5,770
|
|
|
|
3,970
|
|
Board expenses
|
|
|
315
|
|
|
|
314
|
|
Marketing expenses
|
|
|
3,569
|
|
|
|
4,504
|
|
Taxes, payroll taxes, and contributions
|
|
|
2,569
|
|
|
|
3,433
|
|
Real estate taxes
|
|
|
443
|
|
|
|
431
|
|
Patents
|
|
|
540
|
|
|
|
479
|
|
Other taxes
|
|
|
-
|
|
|
|
5
|
|
Contributions to SBIF
|
|
|
1,361
|
|
|
|
2,518
|
|
Total
|
|
|
59,336
|
|
|
|
62,155
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
98
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 31
DEPRECIATION, AMORTIZATION AND IMPAIRMENT
|
a)
|
The values
of depreciation and amortization during March 31, 2019 and 2018 are detailed below:
|
|
|
As March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
Property, plant, and equipment depreciation
|
|
|
(11,968
|
)
|
|
|
(13,355
|
)
|
Intangible assets amortization
|
|
|
(6,316
|
)
|
|
|
(5,825
|
)
|
Amortization for Right of use assets (*)
|
|
|
(7,879
|
)
|
|
|
-
|
|
Total depreciation and amortization
|
|
|
(26,163
|
)
|
|
|
(19,180
|
)
|
Property, plant and equipment impairment
|
|
|
-
|
|
|
|
(39
|
)
|
Totales
|
|
|
(26,163
|
)
|
|
|
(19,219
|
)
|
(*)
By application of IFRS 16, according to circular Banks No. 3,645 of the SBIF, a new charge line for depreciation and amortization
is added.
As
of March 31, 2019, the impairment amount of fixed assets amounts to $39 million ($184 million as of March 31, 2018), mainly due
to ATM incidents.
|
b)
|
The changes in book value due
to depreciation and amortization for March 31, 2019 and 2018 are the following:
|
|
|
Depreciation and amortization
2019
|
|
|
|
Property, plant,
and equipment
|
|
|
Intangible
assets
|
|
|
Right of use
assets
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019
|
|
|
(290,466
|
)
|
|
|
(151,492
|
)
|
|
|
(33,977
|
)
|
|
|
(475,935
|
)
|
Depreciation and amortization for the period
|
|
|
(11,968
|
)
|
|
|
(6,316
|
)
|
|
|
(7,879
|
)
|
|
|
(26,163
|
)
|
Sales and disposals in the period
|
|
|
34,122
|
|
|
|
1,228
|
|
|
|
138
|
|
|
|
35,488
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance as of March 31, 2019
|
|
|
(268,312
|
)
|
|
|
(159,580
|
)
|
|
|
(41,718
|
)
|
|
|
(466,610
|
)
|
|
|
Depreciation and amortization
2018
|
|
|
|
Property, plant,
and equipment
|
|
|
Intangible
assets
|
|
|
Right of use
assets
|
|
|
Total
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2018
|
|
|
(290,931
|
)
|
|
|
(261,828
|
)
|
|
|
-
|
|
|
|
(552,759
|
)
|
Depreciation and amortization for the period
|
|
|
(13,355
|
)
|
|
|
(5,825
|
)
|
|
|
-
|
|
|
|
(19,180
|
)
|
Sales and disposals in the period
|
|
|
26
|
|
|
|
-
|
|
|
|
-
|
|
|
|
26
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance as of March 31, 2018
|
|
|
(304,260
|
)
|
|
|
(267,653
|
)
|
|
|
-
|
|
|
|
(571,913
|
)
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
99
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 32
OTHER OPERATING INCOME AND EXPENSES
|
a)
|
Other operating
income is conformed by the following concepts:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Income from assets received in lieu of payment
|
|
|
|
|
|
|
|
|
Income from sale of assets received in lieu of payment
|
|
|
1,556
|
|
|
|
1,155
|
|
Recovery of charge-offs and income from assets received in lieu of payment
|
|
|
3,149
|
|
|
|
4,150
|
|
Other income from assets received in lieu of payment
|
|
|
191
|
|
|
|
640
|
|
Subtotal
|
|
|
4,896
|
|
|
|
5,945
|
|
|
|
|
|
|
|
|
|
|
Provisions released due to contingencies (1)
|
|
|
44
|
|
|
|
-
|
|
Subtotal
|
|
|
-
|
|
|
|
-
|
|
Other income
|
|
|
|
|
|
|
|
|
Leases
|
|
|
-
|
|
|
|
-
|
|
Income from sale of property, plant and equipment
|
|
|
50
|
|
|
|
1
|
|
Recovery of provisions for contingencies
|
|
|
-
|
|
|
|
100
|
|
Ingresos distintos a intereses y comisiones por contratos de arrendamiento
|
|
|
4
|
|
|
|
-
|
|
Compensation from insurance companies due to damages
|
|
|
-
|
|
|
|
261
|
|
Other
|
|
|
162
|
|
|
|
-
|
|
Subtotal
|
|
|
216
|
|
|
|
362
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
5,156
|
|
|
|
6,307
|
|
(1)
The bank maintained provisions due to contingencies according to IAS 37, which during 2018 resulted in favor of the bank.
|
b)
|
Other operating
expenses is conformed by the following concepts:
|
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
Allowances and expenses for assets received in lieu of payment
|
|
|
|
|
|
|
Charge-offs of assets received in lieu of payment
|
|
|
2,622
|
|
|
|
5,448
|
|
Provisions on assets received in lieu of payment
|
|
|
212
|
|
|
|
446
|
|
Expenses for maintenance of assets received in lieu of
payment
|
|
|
526
|
|
|
|
489
|
|
Subtotal
|
|
|
3,360
|
|
|
|
6,383
|
|
|
|
|
|
|
|
|
|
|
Credit card expenses
|
|
|
354
|
|
|
|
761
|
|
Customer services
|
|
|
512
|
|
|
|
1,034
|
|
|
|
|
|
|
|
|
|
|
Other expenses
|
|
|
|
|
|
|
|
|
Operating charge-offs
|
|
|
72
|
|
|
|
92
|
|
Life insurance and general product insurance policies
|
|
|
110
|
|
|
|
317
|
|
Additional tax on expenses paid overseas
|
|
|
-
|
|
|
|
-
|
|
Gain (Loss) for sale of PP&E
|
|
|
11
|
|
|
|
21
|
|
Provisions for contingencies
|
|
|
1,489
|
|
|
|
923
|
|
Expense for the Retail Association
|
|
|
891
|
|
|
|
215
|
|
Other
|
|
|
7,366
|
|
|
|
175
|
|
Subtotal
|
|
|
9,939
|
|
|
|
1,743
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
14,165
|
|
|
|
9,921
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
100
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE N°33
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:
Companies with relation to the Santander
Group
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 Interim Financial Statements March 2019 / Banco Santander Chile
101
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE N°33
TRANSACTIONS WITH RELATED PARTIES, continued
|
a)
|
Loans to related
parties
|
Loans and receivables as well as contingent
loans are as follows:
|
|
As
of March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Companies
with relation to
the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
Companies
with
relation
to the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and accounts receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
141,896
|
|
|
|
405
|
|
|
|
2,840
|
|
|
|
7,977
|
|
|
|
122,289
|
|
|
|
459
|
|
|
|
4,299
|
|
|
|
233
|
|
Mortgage loans
|
|
|
-
|
|
|
|
-
|
|
|
|
19,224
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,814
|
|
|
|
-
|
|
Consumer loans
|
|
|
-
|
|
|
|
-
|
|
|
|
4,542
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,335
|
|
|
|
-
|
|
Loans and account receivable
|
|
|
141,896
|
|
|
|
405
|
|
|
|
26,606
|
|
|
|
7,977
|
|
|
|
122,289
|
|
|
|
459
|
|
|
|
28,448
|
|
|
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
(349
|
)
|
|
|
(65
|
)
|
|
|
(116
|
)
|
|
|
(3
|
)
|
|
|
(308
|
)
|
|
|
(9
|
)
|
|
|
(116
|
)
|
|
|
(5
|
)
|
Net loans
|
|
|
141,547
|
|
|
|
340
|
|
|
|
26,490
|
|
|
|
7,974
|
|
|
|
121,981
|
|
|
|
450
|
|
|
|
28,332
|
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees
|
|
|
381,002
|
|
|
|
-
|
|
|
|
22,167
|
|
|
|
7,369
|
|
|
|
442,854
|
|
|
|
-
|
|
|
|
22,893
|
|
|
|
7,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal guarantees
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Letters of credit
|
|
|
5,111
|
|
|
|
-
|
|
|
|
-
|
|
|
|
95
|
|
|
|
5,392
|
|
|
|
-
|
|
|
|
2,060
|
|
|
|
44
|
|
Performance guarantees
|
|
|
382,747
|
|
|
|
204
|
|
|
|
-
|
|
|
|
-
|
|
|
|
445,064
|
|
|
|
-
|
|
|
|
3,364
|
|
|
|
-
|
|
Contingent loans
|
|
|
387,858
|
|
|
|
204
|
|
|
|
-
|
|
|
|
95
|
|
|
|
450,456
|
|
|
|
-
|
|
|
|
5,424
|
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for contingent loans
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(18
|
)
|
|
|
-
|
|
Net contingent loans
|
|
|
387,857
|
|
|
|
204
|
|
|
|
-
|
|
|
|
95
|
|
|
|
450,455
|
|
|
|
-
|
|
|
|
5,406
|
|
|
|
44
|
|
Loans regarding activity with related parties during the periods
of 2019 and is the following:
|
|
As
of March 31,
|
|
|
As
of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Santander
Group
companies
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
Santander
Group
companies
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
Opening balances as of January 1,
|
|
|
572,745
|
|
|
|
459
|
|
|
|
33,871
|
|
|
|
7,899
|
|
|
|
476,906
|
|
|
|
771
|
|
|
|
27,051
|
|
|
|
7,826
|
|
Loans granted
|
|
|
21,193
|
|
|
|
207
|
|
|
|
2,014
|
|
|
|
359
|
|
|
|
200,657
|
|
|
|
39
|
|
|
|
16,574
|
|
|
|
773
|
|
Loan payments
|
|
|
(64,184
|
)
|
|
|
(57
|
)
|
|
|
(9,279
|
)
|
|
|
(186
|
)
|
|
|
(104,818
|
)
|
|
|
(351
|
)
|
|
|
(9,754
|
)
|
|
|
(700
|
)
|
Total
|
|
|
529,754
|
|
|
|
609
|
|
|
|
26,606
|
|
|
|
8,072
|
|
|
|
572,745
|
|
|
|
459
|
|
|
|
33,871
|
|
|
|
7,899
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
102
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 33
TRANSACTIONS WITH RELATED PARTIES, continued
|
b)
|
Assets and
liabilities with related parties
|
|
|
As of Marzo 31,
|
|
|
As of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Companies
with relation
to the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key personnel
|
|
|
Other
|
|
|
Companies
with relation
to the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
|
52,119
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
189,803
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Trading investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Investments under resale agreements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Financial derivative contracts
|
|
|
752,925
|
|
|
|
85,704
|
|
|
|
-
|
|
|
|
-
|
|
|
|
748,632
|
|
|
|
105,358
|
|
|
|
-
|
|
|
|
9
|
|
Available for sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other assets
|
|
|
56,302
|
|
|
|
85,146
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38,960
|
|
|
|
51,842
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and other demand liabilities
|
|
|
17,988
|
|
|
|
21,577
|
|
|
|
2,424
|
|
|
|
541
|
|
|
|
27,515
|
|
|
|
(21,577
|
)
|
|
|
2,493
|
|
|
|
(480
|
)
|
Obligations under repurchase agreements
|
|
|
5,764
|
|
|
|
2,201
|
|
|
|
426
|
|
|
|
-
|
|
|
|
6,501
|
|
|
|
-
|
|
|
|
329
|
|
|
|
68
|
|
Time deposits and other time liabilities
|
|
|
2,054,385
|
|
|
|
-
|
|
|
|
3,181
|
|
|
|
838
|
|
|
|
2,585,337
|
|
|
|
-
|
|
|
|
3,189
|
|
|
|
(838
|
)
|
Financial derivative contracts
|
|
|
759,561
|
|
|
|
79,967
|
|
|
|
-
|
|
|
|
4
|
|
|
|
770,624
|
|
|
|
112,523
|
|
|
|
-
|
|
|
|
-
|
|
Bank obligation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Issued debts instruments
|
|
|
370,161
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
335,443
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other financial liabilities
|
|
|
6,627
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,807
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other liabilities
|
|
|
5,623
|
|
|
|
82,684
|
|
|
|
-
|
|
|
|
-
|
|
|
|
60,884
|
|
|
|
89,817
|
|
|
|
-
|
|
|
|
-
|
|
|
c)
|
Recognized income (expense) with related parties
|
|
|
As of March 31,
|
|
|
As of December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Companies
with relation to
the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
Companies
with relation
to the
Santander
Group
|
|
|
Associated
companies
|
|
|
Key
personnel
|
|
|
Other
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expense) recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expenses from interest and inflation
|
|
|
(17,690
|
)
|
|
|
(1,020
|
)
|
|
|
164
|
|
|
|
89
|
|
|
|
(53,256
|
)
|
|
|
(156
|
)
|
|
|
1,252
|
|
|
|
508
|
|
Fee and commission income and expenses
|
|
|
39,361
|
|
|
|
6,420
|
|
|
|
63
|
|
|
|
8
|
|
|
|
91,178
|
|
|
|
7,826
|
|
|
|
305
|
|
|
|
22
|
|
Net income (expense) from financial operations and foreign exchange transactions (*)
|
|
|
110,435
|
|
|
|
(29,615
|
)
|
|
|
(22
|
)
|
|
|
(1
|
)
|
|
|
(566,677
|
)
|
|
|
65,727
|
|
|
|
27
|
|
|
|
(12
|
)
|
Other operating income and expenses
|
|
|
-
|
|
|
|
(1,479
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
42
|
|
|
|
1,388
|
|
|
|
-
|
|
|
|
-
|
|
Key personnel compensation and expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,525
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,761
|
)
|
|
|
-
|
|
Administrative and other expenses
|
|
|
(9,679
|
)
|
|
|
(11,341
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(43,035
|
)
|
|
|
(50,764
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
122,427
|
|
|
|
37,035
|
|
|
|
(8,323
|
)
|
|
|
96
|
|
|
|
(571,748
|
)
|
|
|
24,022
|
|
|
|
(10,177
|
)
|
|
|
518
|
|
|
(*)
|
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 Interim Financial Statements March 2019 / Banco Santander Chile
103
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 33
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 Interim Statements of Income, and detailed
as follows:
|
|
As of March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
Personnel compensation
|
|
|
3,707
|
|
|
|
4,303
|
|
Board member`s salaries and expenses
|
|
|
315
|
|
|
|
303
|
|
Bonuses or gratuity
|
|
|
4,203
|
|
|
|
4,064
|
|
Compensation in stock
|
|
|
(132
|
)
|
|
|
(139
|
)
|
Training expenses
|
|
|
2
|
|
|
|
42
|
|
Seniority compensation
|
|
|
352
|
|
|
|
657
|
|
Health funds
|
|
|
65
|
|
|
|
70
|
|
Other personnel expenses
|
|
|
79
|
|
|
|
163
|
|
Pension Plans (*)
|
|
|
(64
|
)
|
|
|
294
|
|
Total
|
|
|
8,527
|
|
|
|
9,757
|
|
(*) Part of the executives that qualified for this benefit
stopped being a part of the Group for different motives without fulfilling the requirements to obtain this benefit. Due to this
the liability was reduced generating an income from the reversal from these provisions.
|
e)
|
Composition of key personnel
|
As of March 31, 2019 and December 31,
2018, the composition of the Bank’s key personnel is as follows:
|
|
N° of executives
|
|
|
|
As of March 31,
|
|
|
As of December 31,
|
|
Position
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Directors
|
|
|
10
|
|
|
|
11
|
|
Division managers
|
|
|
12
|
|
|
|
12
|
|
Managers
|
|
|
106
|
|
|
|
119
|
|
|
|
|
|
|
|
|
|
|
Total key personnel
|
|
|
128
|
|
|
|
142
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
104
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
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 March 31, 2019 and December
31, 2018:
|
|
As of
March 31,
2019
|
|
|
As of
December 31,
2018
|
|
|
|
Book value
|
|
|
Fair value
|
|
|
Book value
|
|
|
Fair value
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading investments
|
|
|
94,808
|
|
|
|
94,808
|
|
|
|
77,041
|
|
|
|
77,041
|
|
Financial derivative contracts
|
|
|
2,983,230
|
|
|
|
2,983,230
|
|
|
|
3,100,635
|
|
|
|
3,100,635
|
|
Loans and accounts receivable from customers and interbank loans, (net)
|
|
|
29,805,701
|
|
|
|
33,819,686
|
|
|
|
29,485,435
|
|
|
|
30,573,611
|
|
Investments available for sale
|
|
|
2,799,044
|
|
|
|
2,799,044
|
|
|
|
2,394,323
|
|
|
|
2,394,323
|
|
Guarantee deposits (margin accounts)
|
|
|
233,175
|
|
|
|
233,175
|
|
|
|
170,232
|
|
|
|
170,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and interbank borrowings
|
|
|
23,196,909
|
|
|
|
23,474,183
|
|
|
|
23,597,863
|
|
|
|
23,770,106
|
|
Financial derivative contracts
|
|
|
2,546,341
|
|
|
|
2,546,341
|
|
|
|
2,517,728
|
|
|
|
2,517,728
|
|
Issued debt instruments and other financial liabilities
|
|
|
8,750,100
|
|
|
|
9,487,974
|
|
|
|
8,330,633
|
|
|
|
8,605,135
|
|
Guarantees received (margin accounts)
|
|
|
512,903
|
|
|
|
512,903
|
|
|
|
371,512
|
|
|
|
371,512
|
|
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.
|
a)
|
Operations
pending settlement, trading investments, available for sale investment instruments, repurchase
agreements and securities loans
|
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.
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
105
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
FAIR VALUE OF FINANCIAL ASSETS AND
LIABILITIES, continued
|
b)
|
Loans
and accounts receivable from customers and interbank loans
|
Fair value of commercial, mortgage and
consumer loans and credit cards is 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.
Fair
value and hierarchy measurement
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.
• 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).
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
106
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
FAIR VALUE OF FINANCIAL ASSETS AND
LIABILITIES, continued
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
financial instrument
|
|
Model
used in valuation
|
|
Description
|
Mortgage
and private bonds
|
|
Present Value of Cash Flows Model
|
|
Internal Rates of Return (“IRRs”)
are provided by RiskAmerica, 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 RiskAmerica,
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.
The following financial instruments are
classified under Level 3:
Type
of
financial instrument
|
|
Model
used in valuation
|
|
Description
|
Caps/
Floors/ Swaptions
|
|
Black Normal Model for Cap/Floors and Swaptions
|
|
There is no observable input of implicit volatility.
|
UF
options
|
|
Black – Scholes
|
|
There is no observable input of implicit volatility.
|
Cross
currency swap with window
|
|
Hull-White
|
|
Hybrid HW model
for rates and Brownian motion for FX, There is no observable input of implicit volatility.
|
CCS
(special contracts)
|
|
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 Tasa Activa Bancaria (Active Bank Rate) TAB
|
|
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.
|
Bonds
(in our case, low liquidity bonds)
|
|
Present Value of Cash Flows Model
|
|
Valued by using
similar instrument prices plus a charge-off rate by liquidity.
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
107
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
FAIR VALUE OF FINANCIAL ASSETS AND
LIABILITIES, continued
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 March 31, 2019 and December 31, 2018.
|
|
Fair value measurement
|
|
|
|
2019
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
As of March 31,
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading investments
|
|
|
94,808
|
|
|
|
94,808
|
|
|
|
-
|
|
|
|
-
|
|
Available for sale investments
|
|
|
2,799,044
|
|
|
|
2,776,249
|
|
|
|
22,144
|
|
|
|
651
|
|
Derivatives
|
|
|
2,983,230
|
|
|
|
-
|
|
|
|
2,972,777
|
|
|
|
10,453
|
|
Guarantee deposits (margin accounts)
|
|
|
233,175
|
|
|
|
-
|
|
|
|
233,175
|
|
|
|
-
|
|
Total
|
|
|
6,110,257
|
|
|
|
2,871,057
|
|
|
|
2,228,096
|
|
|
|
11,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
2,546,341
|
|
|
|
-
|
|
|
|
2,546,341
|
|
|
|
-
|
|
Guarantees received (margin accounts)
|
|
|
512,903
|
|
|
|
-
|
|
|
|
512,903
|
|
|
|
-
|
|
Total
|
|
|
3,059,244
|
|
|
|
-
|
|
|
|
3,059,244
|
|
|
|
-
|
|
|
|
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
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
108
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
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 March 31, 2019 and 2018:
|
|
Assets
|
|
|
Liabilities
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
As of January 1, 2019
|
|
|
12,193
|
|
|
|
795
|
|
Total realized and unrealized profits (losses)
|
|
|
|
|
|
|
|
|
Included in statement of income
|
|
|
(1,089
|
)
|
|
|
(795
|
)
|
Included in other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
Purchases, issuances, and loans (net)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2019
|
|
|
11,104
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total profits or losses included in comprehensive income
at March 31, 2019 that are attributable to change in unrealized profit (losses) related to assets or liabilities as of December
31, 2018
|
|
|
(1,089
|
)
|
|
|
(795
|
)
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
MCh$
|
|
|
MCh$
|
|
|
|
|
|
|
|
|
As of January 1, 2018
|
|
|
22,987
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Total realized and unrealized profits (losses)
|
|
|
|
|
|
|
|
|
Included in statement of income
|
|
|
(8,367
|
)
|
|
|
156,991
|
|
Included in other comprehensive income
|
|
|
23
|
|
|
|
-
|
|
Purchases, issuances, and loans (net)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2018
|
|
|
14,643
|
|
|
|
156,998
|
|
|
|
|
|
|
|
|
|
|
Total profits or losses included in comprehensive income
at March 31, 2018 that are attributable to change in unrealized profit (losses) related to assets or liabilities as of December
31, 2016
|
|
|
(8,344
|
)
|
|
|
156,991
|
|
The realized and unrealized profits (losses)
included in comprehensive income for 2019 and 2018, in the assets and liabilities measured at fair value on a recurrent basis
through unobservable market data (Level 3) are recorded in the Interim Statement of Comprehensive Income in the associate line
item.
The potential effect as of March 31, 2019
and 2018 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 Interim Financial Statements March 2019 / Banco Santander Chile
109
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 34
FAIR VALUE OF FINANCIAL ASSETS AND
LIABILITIES, continued
The following tables show the financial instruments subject
to compensation in accordance with IAS 32, for 2019 and 2018:
|
|
As of March 31, 2019
|
|
|
|
Linked financial instruments, compensated
in
balance
|
|
|
|
|
Financial instruments
|
|
Gross amounts
|
|
|
Compensated in
balance
|
|
|
Net amount
presented in
balance
|
|
|
Remains of
unrelated and / or
unencumbered
financial
instruments
|
|
|
Amount in
Statements
of Financial
Position
|
|
Assets
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
|
|
Financial derivative contracts
|
|
|
2,829,646
|
|
|
|
-
|
|
|
|
2,829,646
|
|
|
|
153,584
|
|
|
|
2,983,230
|
|
Investments under resale agreements
|
|
|
5,015
|
|
|
|
-
|
|
|
|
5,015
|
|
|
|
-
|
|
|
|
5,015
|
|
Loans and accounts receivable from customers, and Interbank loans, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,805,701
|
|
|
|
29,805,701
|
|
Total
|
|
|
2,834,661
|
|
|
|
-
|
|
|
|
2,834,661
|
|
|
|
29,959,285
|
|
|
|
32,793,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial derivative contracts
|
|
|
2,413,564
|
|
|
|
-
|
|
|
|
2,413,564
|
|
|
|
132,777
|
|
|
|
2,546,341
|
|
Investments under resale agreements
|
|
|
120,935
|
|
|
|
-
|
|
|
|
120,935
|
|
|
|
-
|
|
|
|
120,935
|
|
Déposits and interbank borrowings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,196,909
|
|
|
|
23,196,909
|
|
Total
|
|
|
2,534,499
|
|
|
|
-
|
|
|
|
2,534,499
|
|
|
|
23,329,686
|
|
|
|
25,864,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
Linked financial instruments, compensated
in
balance
|
|
|
|
|
Financial instruments
|
|
Gross amounts
|
|
|
Compensated in
balance
|
|
|
Net amount
presented in
balance
|
|
|
Remains of
unrelated and / or
unencumbered
financial
instruments
|
|
|
Amount in
Statements of
Financial
Position
|
|
Assets
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
Ch$ Million
|
|
|
|
|
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
|
|
Déposits and interbank borrowings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,597,862
|
|
|
|
23,597,862
|
|
Total
|
|
|
2,195,715
|
|
|
|
-
|
|
|
|
2,195,715
|
|
|
|
24,380,035
|
|
|
|
26,164,135
|
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
110
Banco Santander Chile and Subsidiaries
Notes to the Consolidated Financial Statements
AS OF MARCH 31, 2019 AND 2018 AND DECEMBER
31, 2018
NOTE 35
SUBSEQUENT EVENTS
During an extraordinary session held
on April 2, 2019, the board agreed to propose to the Common Shareholders on a meeting held on April 21, 2019 a dividend distribution
equivalent to Ch$2.24791611 per share, corresponding to 75% of the net income for the year ended 2018. The remainding 25% will
be destined to increase the Bank’s reserves.
There are no other subsequent events
to be disclosed that occurred between April 1, 2018 and the date of issuance of these Financial Statements (April 17, 2018).
FELIPE CONTRERAS
FAJARDO
Chief Accounting Officer
|
|
MIGUEL MATA
HUERTA
Chief Executive Officer
|
Consolidated Interim Financial Statements March 2019 / Banco Santander Chile
111