XML 30 R11.htm IDEA: XBRL DOCUMENT
v3.19.1

Transition disclosures | 12 Months Ended
--- | ---
Dec. 31, 2018
Transition disclosures |
Transition disclosures | 5. Transition disclosures: During the period ended December 31, 2018, Banco de Chile adopted IFRS 9 “Financial Instruments”, which replaces IAS 39 “Financial Instrument: Recognition and Measurement”. The following information provides a detailed overview of the IFRS 9 transition effects as of January 1, 2018, including the reclassification of IAS 39 carrying amount to the new categories applicable under IFRS 9 and the recognition of the effect of replacing IAS 39’s incurred credit loss calculation with IFRS 9’s ECLs calculation. (a)Reclassification and remeasurement of carrying amounts and recognition of ECL upon adoption of IFRS 9.
|  | As of December 31, 2017 |  | As of January 1, 2018
|  | IAS 39 |  |  |  |  |  |  |  |  |  | IFRS 9
|  | Measurement |  |  |  |  |  | Remeasurement |  | Measurement
|  | Category |  | Amount |  | Reclassification |  | ECL |  | Amount |  | Category
|  |  |  | MCh$ |  | Ref |  | MCh$ |  | Ref |  | MCh$ |  | MCh$ |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | L&R |  | 1,057,393 |  |  |  | — |  |  |  | — |  | 1,057,393 |  | AC
Transactions in the course of collection |  | L&R |  | 255,968 |  |  |  | — |  |  |  | — |  | 255,968 |  | AC
Financial assets held-for-trading |  | FVPL |  | 1,538,578 |  |  |  | 78,069 |  |  |  | — |  | 1,616,647 |  | FVPL
From: Other assets |  |  |  |  |  | A |  | 78,069 |  |  |  | — |  |  |  |
Cash collateral on securities borrowed and reverse repurchase agreements |  | L&R |  | 91,641 |  |  |  | — |  |  |  | — |  | 91,641 |  | AC
Derivative instruments |  | FVPL |  | 1,247,941 |  |  |  | — |  |  |  | — |  | 1,247,941 |  | FVPL
Loans and advance to banks |  | L&R |  | 760,021 |  |  |  |  |  | D |  | (508) |  | 759,513 |  | AC
Loans to customers, net |  | L&R |  | 24,955,692 |  |  |  | — |  | D |  | (73,817) |  | 24,881,875 |  | AC
Financial assets available-for-sale |  | L&R |  | 1,526,315 |  |  |  | (1,526,315) |  |  |  | — |  | N/A |  |
To: Financial instruments at fair value through OCI - Equity |  |  |  |  |  | B |  | (10,252) |  |  |  | — |  |  |  |
To: Financial instruments at fair value through OCI- Debt |  |  |  |  |  | C |  | (1,516,063) |  |  |  | — |  |  |  |
Financial assets at fair value through OCI |  |  |  | N/A |  |  |  | 1,526,315 |  |  |  | — |  | 1,526,315 |  | FVOCI
From: Financial assets available-for-sale - Equity |  |  |  |  |  | B |  | 10,252 |  |  |  | — |  |  |  |
From: Financial assets available-for-sale - Debt |  |  |  |  |  | C |  | 1,516,063 |  |  |  | — |  |  |  |
Investments in other companies |  |  |  | 35,771 |  |  |  | — |  |  |  | — |  | 35,771 |  |
Intangible assets |  |  |  | 72,455 |  |  |  | — |  |  |  | — |  | 72,455 |  |
Property and equipment |  |  |  | 216,259 |  |  |  | — |  |  |  | — |  | 216,259 |  |
Investments properties |  |  |  | 14,306 |  |  |  | — |  |  |  | — |  | 14,306 |  |
Current tax assets |  |  |  | 23,032 |  |  |  | — |  |  |  | — |  | 23,032 |  |
Deferred tax assets, net |  |  |  | 161,265 |  |  |  | — |  | E |  | 23,200 |  | 184,465 |  |
Other assets |  |  |  | 604,800 |  |  |  | (78,069) |  |  |  | — |  | 526,731 |  |
To: Financial assets held-for-trading |  |  |  |  |  | A |  | (78,069) |  |  |  | — |  |  |  |
TOTAL ASSETS |  |  |  | 32,561,437 |  |  |  | — |  |  |  | (51,125) |  | 32,510,312 |  |
ACAmortized cost L&RLoans and Receivables FVPLFair Value through Profit or Loss FVOCIFair Value through Other Comprehensive Income
| As of December 31, 2017 |  | As of January 1, 2018
| IAS 39 |  |  |  |  |  |  |  |  | IFRS 9
| Measurement |  |  |  |  |  | Remeasurement | Measurement
|  | Category |  | Amount |  | Reclassification |  | ECL |  | Amount |  | Category
|  |  |  | MCh$ |  | Ref |  | MCh$ |  | Ref |  | MCh$ |  | MCh$ |  |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current accounts and other demand deposits |  | AC |  | 8,915,706 |  |  |  | — |  |  |  | — |  | 8,915,706 |  | AC
Transactions in the course of payments |  | AC |  | 29,871 |  |  |  | — |  |  |  | — |  | 29,871 |  | AC
Cash collateral on securities lent and repurchase agreements |  | AC |  | 195,392 |  |  |  | — |  |  |  | — |  | 195,392 |  | AC
Saving accounts and time deposits |  | AC |  | 10,067,778 |  |  |  | — |  |  |  | — |  | 10,067,778 |  | AC
Derivate instruments |  | FVPL |  | 1,392,995 |  |  |  | — |  |  |  | — |  | 1,392,995 |  | FVPL
Borrowings from financial institutions |  | AC |  | 1,195,028 |  |  |  | — |  |  |  | — |  | 1,195,028 |  | AC
Debt issued |  | AC |  | 6,488,975 |  |  |  | — |  |  |  | — |  | 6,488,975 |  | AC
Other financial obligations |  | AC |  | 137,163 |  |  |  | — |  |  |  | — |  | 137,163 |  | AC
Current tax liabilities |  |  |  | 3,453 |  |  |  | — |  |  |  | — |  | 3,453 |  |
Provisions |  |  |  | 194,537 |  | F |  | 11,374 |  | D |  | 11,601 |  | 217,512 |  |
Employee benefits |  |  |  | 86,628 |  |  |  | — |  |  |  | — |  | 86,628 |  |
Other liabilities |  |  |  | 308,563 |  | F |  | (11,374) |  |  |  | — |  | 297,189 |  |
TOTAL LIABILITIES |  |  |  | 29,016,089 |  |  |  | — |  |  |  | 11,601 |  | 29,027,690 |  |
EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Attributable to equity holders of the parent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital |  |  |  | 2,271,401 |  |  |  | — |  |  |  | — |  | 2,271,401 |  |
Reserves |  |  |  | 809,557 |  |  |  | — |  |  |  | — |  | 809,557 |  |
Other comprehensive income |  |  |  | 127 |  | G |  | 4,249 |  |  |  | — |  | 4,376 |  |
Retained earnings: |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  |
Retained earnings from previous periods |  |  |  | 64,986 |  | G |  | (4,249) |  | H |  | (62,726) |  | (1,989) |  |
Income for the year |  |  |  | 572,080 |  |  |  | — |  |  |  | — |  | 572,080 |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provisions for minimum dividend |  |  |  | (172,804) |  |  |  | — |  |  |  | — |  | (172,804) |  |
Non-controlling interest |  |  |  | 1 |  |  |  | — |  |  |  | — |  | 1 |  |
TOTAL EQUITY |  |  |  | 3,545,348 |  |  |  | — |  |  |  | (62,726) |  | 3,482,622 |  |
TOTAL LIABILITIES AND EQUITY |  |  |  | 32,561,437 |  |  |  | — |  |  |  | (51,125) |  | 32,510,312 |  |
ACAmortized cost L&RLoans and Receivables FVPLFair Value through Profit or Loss FVOCIFair Value through Other Comprehensive Income (b)Explanatory footnotes to the table “Reclassification and remeasurement of carrying amounts and recognition of ECL upon adoption of IFRS 9”.
Table Ref |  | Description of classification or remeasurement changes on adoption of IFRS 9 as of January 1, 2018
A |  | To achieve measurement consistency with reclassified instruments that are measured at fair value through Profit or Loss following adoption of IFRS 9, mutual funds classified as "other assets" with a carrying amount of MCh$78,069 have been designated at FVPL and presented as “Financial assets held-for-trading” as of January 1, 2018.
B |  | The Bank has elected the option to irrevocably designate its equity instruments available-for-sale as “Financial assets measured at Fair Value through Other Comprehensive Income”. The fair value of these assets was consistent with the value as of January 1, 2018 and no remeasurement gain or loss has been recognized.
C |  | Debt instrument with a carrying amount of MCh$1,516,063 as of December 31, 2017 were formerly classified as “Financial assets available-for-sale” and measured at FV under IAS 39. The Bank concluded that these instruments are managed within a business model whose objective is to collect contractual cash flows and sell the financial assets. Accordingly, the Bank has classified these investments as “Financial assets measured at Fair Value through Other Comprehensive Income”. The fair value of these assets was consistent with the value as of 1 January 2018 and no remeasurement gain or loss has been recognized.
D |  | Upon adoption of the ECL requirements of IFRS 9, a transition impact of MCh$85,926 was recognized in allowances. The effect was recognized within “Loans to customer” by MCh$73,817, “Loans and advance to banks” by MCh$508 and “Provisions” by MCh$11,601.
E |  | Deferred tax assets of MCh$23,200 have been recognized in connection with the adoption and recognition of ECL upon adoption of IFRS 9. More detail of the effect of adopting IFRS 9 on deferred tax assets is set out in the letter (c) immediately below.
F |  | Reclassifies provisions for contingent loan risks classified as other liabilities as of December 31, 2017.
G |  | An unrealized loss in Other Comprehensive Income of MCh$5,820 has been reclassified from equity to retained earnings related to ECL allowances calculated over the Financial assets FVOCI (refer to footnote C above), with no overall impact on equity attributable to shareholders. Additionally, a tax income of MCh$1,571 was transferred from other comprehensive income to retained earnings related to ECL allowances mentioned above.
H |  | The adoption of IFRS 9 has resulted in a reduction to IFRS consolidated equity as of January 1, 2018 of MCh$62,726 net of tax. This effect is comprised of implementation of ECL credit loss methodology of MCh$91,746 on a pre-tax basis.
(c)IFRS 9 impact on other comprehensive income and retained earnings: The table below presents the transition effects recognized in Other Comprehensive Income and Retained Earnings upon adoption of IFRS 9.
|  | Reserves and
|  | retained earnings
|  | MCh$
Unrealized gains (losses) on financial assets at FV through OCI |  |
Closing balance under IAS 39 (December 31, 2017) |  | 9,521
Recognition of ECL under IFRS 9 for debt financial assets at FVOCI |  | 5,820
Deferred tax in relation to the above |  | (1,571)
Opening balance under IFRS 9 (January 1, 2018) |  | 13,770
Retained earnings from previous periods |  |
Closing balance under IAS 39 (December 31, 2017) |  | 464,262
Recognition of IFRS 9 ECLs for loans and contingent loan risks |  | (85,926)
Recognition of IFRS 9 ECLs for financial assets at FVOCI |  | (5,820)
Deferred tax in relation to the above |  | 24,771
Opening balance under IFRS 9 (January 1, 2018) |  | 397,287
Total change in equity due to adopting IFRS 9 |  | (62,726)
(d)Reconciliation of allowances and provisions on adoption of IFRS 9: The table below provides a reconciliation from the IAS 39 allowances / IAS 37 provisions to the IFRS 9 ECL allowances/provisions recognized as of January 1, 2018 upon adoption of IFRS 9.
|  | Provision under IAS 39 / IAS 37 |  |  |  | ECLs under IFRS 9
|  | at 31 December 2017 |  | Remeasurement |  | at 1 January 2018
|  | MCh$ |  | MCh$ |  | MCh$
Due from banks |  | (264) |  | (508) |  | (772)
Loans to Customers |  |  |  |  |  |
Commercial loans |  | (221,229) |  | (181) |  | (221,410)
Mortgage loans |  | (32,015) |  | (1,762) |  | (33,777)
Consumer loans |  | (242,577) |  | (71,874) |  | (314,451)
Subtotal due from banks and loans to customers |  | (496,085) |  | (74,325) |  | (570,410)
Financial guarantees |  | (11,205) |  | 7,273 |  | (3,932)
Letter of credit for customers |  | (169) |  | 97 |  | (72)
Undrawn credit lines |  | — |  | (18,971) |  | (18,971)
Subtotal contingent loan risks |  | (11,374) |  | (11,601) |  | (22,975)
Debt instruments at fair value through OCI |  | — |  | (5,820) |  | (5,820)
Subtotal financial assets at FVOCI |  | — |  | (5,820) |  | (5,820)
Total Allowances / Provisions |  | (507,459) |  | (91,746) |  | (599,205)

X
- Definition The entire disclosure for the entity's first-time adoption of International Financial Reporting Standard 9. + References No definition available. + Details
Name: | bch_DisclosureOfFirstTimeAdoptionOfIfrs9TextBlock
Namespace Prefix: | bch_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfInitialApplicationOfStandardsOrInterpretationsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration