XML 28 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Reporting
 12 Months Ended
Dec. 31, 2020
Disclosure of entity's operating segments [text block] [Abstract]  
Segment Reporting
5.Segment Reporting:

For management purposes, the Bank has organized its operations and commercial strategies into four business segments, which are defined in accordance with the type of products and services offered to target customers. These business segments are currently defined as follows:


Retail:This segment focuses on individuals and small and medium-sized companies (SMEs) with annual sales up to UF 70,000, where the product offering focuses primarily on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans.

Wholesale:This segment focused on corporate clients and large companies, whose annual revenue exceed UF 70,000, where the product offering focuses primarily on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases.

Treasury:This segment includes the associated revenues to the management of the investment portfolio and the business of financial transactions and currency trading.

Transactions with customers carried out by the Treasury are reflected in the respective aforementioned segments. These products are highly transaction-focused and include foreign exchange transactions, derivatives and financial instruments in general, among others.


Subsidiaries:Corresponds to the businesses generated by the companies controlled by the Bank, which carry out activities complementary to the bank business. The companies that comprise this segment are:

●Banchile Administradora General de Fondos S.A.

●Banchile Asesoría Financiera S.A.

●Banchile Corredores de Seguros Ltda.

●Banchile Corredores de Bolsa S.A.

●Banchile Securitizadora S.A.

●Socofin S.A.

The financial information used to measure the performance of the Bank’s business segments is not necessarily comparable with similar information from other financial institutions because it is based on internal reporting policies. The Bank obtains the majority of its income from: interest, UF indexation and fees and financial operations and changes, discounting provisions for credit risk and operating expenses. Management is mainly focused on these concepts in its evaluation of segment performance and decision-making regarding goals and allocation of resources for each unit individually. Although the results of the segments reconcile with those of the Bank at total level, this is not necessarily the case for all concepts on an individual basis, since the management is measured and controlled in individual form and additionally applies the following criteria:


●The net interest margin of loans and deposits is obtained aggregating the net financial margins of each individual operation of credit and uptake made by the Bank. For these purposes, the volume of each operation and its contribution margin are considered, which in turn corresponds to the difference between the effective rate of the customer and the internal transfer price established according to the term and currency of each operation. Additionally, the net margin includes the result of interest and indexation from the accounting hedges.

●Provisions for credit risk are determined at the customer level based on the characteristics of each of their operations. In the case of additional provisions, these are assigned to the different business segments based on the credit risk weighted assets that each segment has.

●The capital and financial impacts on outcome have been assigned to each segment based on the risk-weighted assets.

●Operational expenses are reflected at the level of the different functional areas of the Bank. The allocation of expenses from functional areas to business segments is done using different allocation criteria, at the level of the different concepts and expense items.

The Bank did not enter into transactions with any particular customer or third party that collectively generated more than 10% of the Bank’s total income in 2019 and 2020.


Taxes are managed at the consolidated level and are not allocated to business segments.


   As of December 31, 2018 
   Retail   Wholesale   Treasury   Subsidiaries   Subtotal   Reclassifications
and adjustments
to conform IFRS		     Total 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   Note  MCh$ 
Net interest income   976,698    356,167    (7,657)   (8,994)   1,316,214    4,763       1,320,977 
Net fees and commissions income   184,494    45,576    (3,651)   145,704    372,123    (12,168)      359,955 
Other operating income   42,490    62,302    61,803    33,341    199,936    (34,798)      165,138 
Total operating revenue   1,203,682    464,045    50,495    170,051    1,888,273    (42,203)  (1)   1,846,070 
Provisions for Expected Credit losses   (287,073)   5,545    —    118    (281,410)   31,639   (2)   (249,771)
Depreciation and amortization   (29,621)   (5,029)   (20)   (3,011)   (37,681)   —       (37,681)
Other operating expenses   (563,643)   (152,235)   (3,249)   (105,906)   (825,033)   23,006   (3)   (802,027)
Income attributable to associates   5,454    1,213    126    462    7,255    (444)      6,811 
Income before income taxes   328,799    313,539    47,352    61,714    751,404    11,998       763,402 
Income taxes                       (156,531)   (3,237)  (4)   (159,768)
Income after income taxes                       594,873    8,761       603,634 
                                       
Assets   16,425,483    10,591,702    8,093,850    925,440    36,036,475    (612,545)      35,423,930 
Current and deferred taxes                       262,582    (85,082)      177,500 
Total assets                       36,299,057    (697,627)  (5)   35,601,430 
                                       
Liabilities   10,399,587    9,873,018    11,952,656    764,736    32,989,997    (1,067,190)      31,922,807 
Current and deferred taxes                       4,907    —       4,907 
Total liabilities                       32,994,904    (1,067,190)  (6)   31,927,714 

Reclassifications and adjustments to conform IFRS


(1)The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(14,990). In addition the total effect of IFRS adjustments is MCh$(27,213) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition.

(2)The total effect relates to IFRS adjustments of MCh$31,639, which mainly stems from differences in the calculation of allowances for ECL.

(3)The total effect due to the elimination adjustments to conform other operating expenses is MCh$14,990. In addition the total effect of IFRS adjustments is MCh$8,016, which mainly represents reversal of write-offs of assets received in lieu of payments.

(4)The total effect relates to IFRS adjustments of MCh$(3,237), which stems from deferred taxes.

(5)The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(388,615). In addition the total effect of IFRS adjustments in assets is MCh$(309,012), which mainly stems from differences in the calculation of allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection.

(6)The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(388,615). In addition the total effect of IFRS adjustments in liabilities is MCh$(678,575), which mainly stems from provision for minimum dividends and differences in the calculation of allowances for loan losses.

   As of December 31, 2019 
   Retail   Wholesale   Treasury   Subsidiaries   Subtotal   Reclassifications and adjustments to conform IFRS     Total 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   Note  MCh$ 
Net interest income   1,020,346    366,638    (13,511)   (7,650)   1,365,823    5,455       1,371,278 
Net fees and commissions income   268,345    49,492    (2,917)   153,330    468,250    (10,948)      457,302 
Other operating income   37,225    62,153    42,087    53,931    195,396    (18,758)      176,638 
Total operating revenue   1,325,916    478,283    25,659    199,611    2,029,469    (24,251)  (1)   2,005,218 
Provisions for Expected Credit losses   (332,833)   (14,375)   —    (66)   (347,274)   15,673   (2)   (331,601)
Depreciation and amortization   (57,826)   (6,605)   (264)   (5,846)   (70,541)   —       (70,541)
Other operating expenses   (588,997)   (151,949)   (2,967)   (111,499)   (855,412)   23,703   (3)   (831,709)
Income attributable to associates   4,826    1,020    111    493    6,450    (411)      6,039 
Income before income taxes   351,086    306,374    22,539    82,693    762,692    14,714       777,406 
Income taxes                       (169,683)   (3,978)  (4)   (173,661)
Income after income taxes                       593,009    10,736       603,745 
                                       
Assets   18,215,859    10,765,728    11,351,141    964,695    41,297,423    (515,199)      40,782,224 
Current and deferred taxes                       321,305    (89,655)      231,650 
Total assets                       41,618,728    (604,854)  (5)   41,013,874 
                                       
Liabilities   10,735,252    9,160,441    17,337,471    781,052    38,014,216    (982,392)      37,031,824 
Current and deferred taxes                       76,289    —       76,289 
Total liabilities                       38,090,505    (982,392)  (6)   37,108,113 

Reclassifications and adjustments to conform IFRS


(1)The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(14,949). In addition the total effect of IFRS adjustments is MCh$(9,302) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition.

(2)The total effect relates to IFRS adjustments of MCh$15,673, which mainly stems from differences in the calculation of allowances for ECL.

(3)The total effect due to the elimination adjustments to conform other operating expenses is MCh$14,949. In addition the total effect of IFRS adjustments is MCh$8,754, which mainly represents reversal of write-offs of assets received in lieu of payments.

(4)The total effect relates to IFRS adjustments of MCh$(3,978), which stems from deferred taxes.

(5)The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(345,395). In addition the total effect of IFRS adjustments in assets is MCh$(259,459), which mainly stems from differences in the calculation of allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection.

(6)The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(345,395). In addition the total effect of IFRS adjustments in liabilities is MCh$(636,997), which mainly stems from provision for minimum dividends and differences in the calculation of allowances for loan losses.

   As of December 31, 2020 
   Retail   Wholesale   Treasury   Subsidiaries   Subtotal   Reclassifications and adjustments to conform IFRS      Total 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   Note  MCh$ 
Net interest income   940,088    377,301    (3,603)   (1,923)   1,311,863    4,925      1,316,788 
Net fees and commissions income   265,233    55,704    (1,969)   143,863    462,831    (16,863)      445,968 
Other operating income   26,233    49,186    74,119    35,991    185,529    (13,475)      172,054 
Total operating revenue   1,231,554    482,191    68,547    177,931    1,960,223    (25,413)  (1)   1,934,810 
Provisions for Expected Credit losses   (325,852)   (136,448)   —    (380)   (462,680)   (84,426)  (2)   (547,106)
Depreciation and amortization   (59,933)   (7,155)   (271)   (5,998)   (73,357)   —       (73,357)
Other operating expenses   (569,247)   (151,367)   (3,249)   (106,591)   (830,454)   26,059   (3)   (804,395)
Income attributable to associates   (5,139)   97    (91)   472    (4,661)   (438)      (5,099)
Income before income taxes   271,383    187,318    64,936    65,434    589,071    (84,218)      504,853 
Income taxes                       (125,962)   22,739   (4)   (103,223)
Income after income taxes                       463,109    (61,479)      401,630 
                                       
Assets   18,800,897    10,811,021    15,400,139    830,910    45,842,967    (607,473)      45,235,494 
Current and deferred taxes                       380,894    (65,428)      315,466 
Total assets                       46,223,861    (672,901)  (5)   45,550,960 
                                       
Liabilities   13,647,952    9,980,003    18,208,458    660,869    42,497,282    (943,714)      41,553,568 
Current and deferred taxes                       311    —       311 
Total liabilities                       42,497,593    (943,714)  (6)   41,553,879 

Reclassifications and adjustments to conform IFRS


(1)The total effect due to the elimination adjustments to conform the total operating revenue is MCh$(21,480). In addition the total effect of IFRS adjustments is MCh$(3,933) which mainly stems from the reclassification of interest on repurchase agreements and suspended interest recognition.

(2)The total effect relates to IFRS adjustments of MCh$(84,426), which mainly stems from differences in the calculation of allowances for ECL.

(3)The total effect due to the elimination adjustments to conform other operating expenses is MCh$21,480. In addition the total effect of IFRS adjustments is MCh$4,579, which mainly represents reversal of write-offs of assets received in lieu of payments.

(4)The total effect relates to IFRS adjustments of MCh$22,739, which stems from deferred taxes.

(5)The total effect due to the elimination adjustments to conform the consolidated financial position data in assets is MCh$(128,730). In addition the total effect of IFRS adjustments in assets is MCh$(544,171), which mainly stems from differences in the calculation of allowances for loan losses, the acquisition of Citibank Chile and deferred taxes effects and settlement of transactions in the course of collection.

(6)The total effect due to the elimination adjustments to conform the consolidated financial position data in liabilities is MCh$(128,730). In addition the total effect of IFRS adjustments in liabilities is MCh$(814,984), which mainly stems from provision for minimum dividends and differences in the calculation of allowances for loan losses.