EX-99.1 2 ea022933301ex99-1_bank.htm CONSOLIDATED FINANCIAL STATEMENTS WITH NOTES AS OF DECEMBER 31, 2024

Exhibit 99.1

Consolidated Financial Staxtements

for the years ended December 31, 2024 and 2023

BANCO DE CHILE AND SUBSIDIARIES

(Free translation of Consolidated Financial Statements originally issued in Spanish)

INDEX

I.	Consolidated Statements of Financial Position
II.	Consolidated Statements of Income
III.	Consolidated Statements of Other Comprehensive Income
IV.	Consolidated Statements of Cash Flows
V.	Consolidated Statements of Changes in Equity
VI.	Notes to the Consolidated Financial Statements

MCh$	=	Millions of Chilean pesos
BCh$	=	Billions of Chilean pesos
MUS$	=	Millions of U.S. dollars
ThUS$	=	Thousands of U.S. dollars
UF or CLF	=	Unidad de Fomento
		(The UF is an inflation-indexed, Chilean peso denominated monetary unit set daily in advance on the basis of the previous month’s inflation rate).
Ch$ or CLP	=	Chilean pesos
US$ or USD	=	U.S. dollar
JPY	=	Japanese yen
EUR	=	Euro
HKD	=	Hong Kong dollar
CHF	=	Swiss Franc
PEN	=	Peruvian sol
AUD	=	Australian dollar
NOK	=	Norwegian krone
MXN	=	Mexican peso

IFRS	=	International Financial Reporting Standards
IAS	=	International Accounting Standards
RAN	=	Actualized Standards Compilation issued by the Chilean Commission for the Financial Market (“CMF”)
IFRIC	=	International Financial Reporting Interpretations Committee
SIC	=	Standards Interpretation Committee

BANCO DE CHILE AND SUBSIDIARIES

INDEX

		Page
Consolidated Statements of Financial Position		3
Consolidated Statements of Income		5
Consolidated Statements of Other Comprehensive Income		7
Consolidated Statements of Cash Flows		8
Consolidated Statements of Changes in Equity		10
1.	Company information:	11
2.	Main Accounting Criteria Used:	12
3.	New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted:	48
4.	Accounting Changes:	54
5.	Relevant Events:	55
6.	Business Segments:	59
7.	Cash and Cash Equivalents:	62
8.	Financial Assets Held for Trading at Fair Value through Profit or Loss:	63
9.	Non-trading Financial Assets mandatorily measured at Fair Value through Profit or Loss:	65
10.	Financial Assets and Liabilities designated as at Fair Value through Profit or Loss:	65
11.	Financial Assets at Fair Value through Other Comprehensive Income:	66
12.	Derivative Financial Instruments for hedging purposes:	68
13.	Financial assets at amortized cost:	71
14.	Investments in other companies:	92
15.	Intangible Assets:	95
16.	Property and equipment:	96
17.	Right-of-use assets and Lease liabilities:	97
18.	Taxes:	100
19.	Other Assets:	105
20.	Non-current assets and disposal groups held for sale and Liabilities included in disposal groups for sale:	106
21.	Financial liabilities held for trading at fair value through profit or loss:	107
22.	Financial liabilities at amortized cost:	108
23.	Financial instruments of regulatory capital issued:	114
24.	Provisions for contingencies:	118
25.	Provision for dividends, interests and reappraisal of financial instruments of regulatory capital issued:	123
26.	Special provisions for credit risk:	124
27.	Other Liabilities:	125
28.	Equity:	126
29.	Contingencies and Commitments:	131
30.	Interest Revenue and Expenses:	136
31.	UF indexation revenue and expenses:	138
32.	Income and Expenses from commissions:	141
33.	Net Financial income (expense):	142
34.	Income attributable to investments in other companies:	143
35.	Result from non-current assets and disposal groups held for sale not admissible as discontinued operations:	144
36.	Other operating Income and Expenses:	144
37.	Expenses from salaries and employee benefits:	146
38.	Administrative expenses:	147
39.	Depreciation and Amortization:	148
40.	Impairment of non-financial assets:	148
41.	Credit loss expense:	149
42.	Income from discontinued operations:	151
43.	Related Party Disclosures:	151
44.	Fair Value of Financial Assets and Liabilities:	158
45.	Maturity according to their remaining Terms of Financial Assets and Liabilities:	170
46.	Financial and Non-Financial Assets and Liabilities by Currency:	172
47.	Risk Management and Report:	173
48.	Information on Regulatory Capital and Capital Adequacy Ratios:	213
49.	Subsequent Events:	218

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

For the years ended December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024		2023
		MCh$		MCh$
ASSETS
Cash and due from banks	7		2,699,076		2,464,648
Transactions in the course of collection	7		372,456		415,505
Financial assets held for trading at fair value through profit or loss:
Derivative financial instruments	8		2,303,353		2,035,376
Debt financial instruments	8		1,714,381		3,363,624
Others	8		411,689		409,328
Non-trading financial assets mandatorily measured at fair value through profit or loss	9		—		—
Financial assets at fair value through profit or loss	10		—		—
Financial assets at fair value through other comprehensive income:
Debt financial instruments	11		2,088,345		3,786,525
Others	11		—		—
Derivative financial instruments for hedging purposes	12		73,959		49,065
Financial assets at amortized cost:
Rights from resale agreements and securities lending	13		87,291		71,822
Debt financial instruments	13		944,074		1,431,083
Loans and advances to Banks	13		666,815		2,519,180
Loans to customers - Commercial loans	13		19,724,933		19,624,909
Loans to customers - Residential mortgage loans	13		13,180,186		12,269,148
Loans to customers - Consumer loans	13		5,183,917		4,937,679
Investments in other companies	14		76,769		76,994
Intangible assets	15		158,556		137,204
Property and equipment	16		189,073		201,657
Right-of-use assets	17		96,879		108,889
Current tax assets	18		159,869		141,194
Deferred tax assets	18		556,829		539,818
Other assets	19		1,373,541		1,186,013
Non-current assets and disposal groups held for sale	20		33,450		22,891
TOTAL ASSETS			52,095,441		55,792,552

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

For the years ended December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024			2023
		MCh$			MCh$
LIABILITIES
Transactions in the course of payment	7		283,605			356,871
Financial liabilities held for trading at fair value through profit or loss:
Derivative financial instruments	21		2,444,806			2,196,921
Others	21		990			2,305
Financial liabilities designated as at fair value through profit or loss	10		—			—
Derivative Financial Instruments for hedging purposes	12		141,040			160,602
Financial liabilities at amortized cost:
Current accounts and other demand deposits	22		14,263,303			13,321,660
Saving accounts and time deposits	22		14,168,703			15,365,562
Obligations by repurchase agreements and securities lending	22		109,794			157,173
Borrowings from financial institutions	22		1,103,468			5,360,715
Debt financial instruments issued	22		9,690,069			9,360,065
Other financial obligations	22		284,479			339,305
Lease liabilities	17		91,429			101,480
Financial instruments of regulatory capital issued	23		1,068,879			1,039,814
Provisions for contingencies	24		194,753			192,152
Provision for dividends, interests and reappraisal of financial instruments of regulatory capital issued	25		597,228			611,949
Special provisions for credit risk	26		774,184			769,147
Currents tax liabilities	18		132			808
Deferred tax liabilities	18		166			—
Other liabilities	27		1,255,412			1,218,738
Liabilities included in disposal groups held for sale	20		—			—
TOTAL LIABILITIES			46,472,440			50,555,267

EQUITY
Capital	28		2,420,538			2,420,538
Reserves	28		709,742			709,742
Accumulated other comprehensive income
Elements that are not reclassified in profit and loss	28		7,552			6,756
Elements that can be reclassified in profit and loss	28		(3,775	)		17,486
Retained earnings from previous years	28		1,878,778			1,451,076
Income for the year	28		1,207,392			1,243,634
Less: Provision for dividends, interests and reappraisal of financial instruments of regulatory capital issued	28		(597,228	)		(611,949	)
Shareholders of the Bank	28		5,622,999			5,237,283
Non-controlling interests	28		2			2
TOTAL EQUITY			5,623,001			5,237,285
TOTAL LIABILITIES AND EQUITY			52,095,441			55,792,552

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

for the years between January 1, and December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024			2023
		MCh$			MCh$

Interest revenue	30		2,919,967			3,181,624
Interest expense	30		(1,138,312	)		(1,634,708	)
Net interest income			1,781,655			1,546,916

UF indexation revenue	31		829,188			832,909
UF indexation expenses	31		(469,992	)		(489,165	)
Net income from UF indexation			359,196			343,744

Income from commissions	32		732,922			714,380
Expenses from commissions	32		(161,039	)		(168,450	)
Net income from commissions			571,883			545,930

Financial income (expense) for:
Financial assets and liabilities held for trading	33		102,301			351,352
Non-trading financial assets mandatorily measured at fair value through profit or loss	33		—			—
Financial assets and liabilities designated as at fair value through profit or loss	33		—			—
Result from derecognition of financial assets and liabilities at amortized cost and financial assets at fair value through other comprehensive income	33		8,289			(4,181	)
Exchange, indexation and accounting hedging of foreign currency	33		164,597			120,594
Reclassification of financial assets for changes in the business model	33		—			—
Other financial result	33		—			—
Net Financial income (expense)	33		275,187			467,765

Income attributable to investments in other companies	34		17,052			14,432
Result from non-current assets and disposal groups held for sale not admissible as discontinued operations	35		(6,465	)		3,146
Other operating income	36		51,777			72,939
TOTAL OPERATING INCOME			3,050,285			2,994,872

Expenses from salaries and employee benefits	37		(582,547	)		(582,684	)
Administrative expenses	38		(416,696	)		(403,255	)
Depreciation and amortization	39		(94,601	)		(92,308	)
Impairment of non-financial assets	40		(2,851	)		(1,762	)
Other operating expenses	36		(36,039	)		(36,090	)
TOTAL OPERATING EXPENSES			(1,132,734	)		(1,116,099	)

OPERATING RESULT BEFORE CREDIT LOSSES			1,917,551			1,878,773

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

for the years between January 1, and December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024			2023
		MCh$			MCh$
Credit loss expense for:
Provisions for credit risk of loans and advances to banks and loans to customers	41		(452,448	)		(423,015	)
Special provisions for credit risk	41		(3,610	)		(3,256	)
Recovery of written-off credits	41		65,313			62,266
Impairments for credit risk from other financial assets at amortized cost and financial assets at fair value through other comprehensive income	41		(1,009	)		2,754
Credit loss expense	41		(391,754	)		(361,251	)

NET OPERATING INCOME			1,525,797			1,517,522

Income from continuing operations before tax			1,525,797			1,517,522
Income tax	18		(318,405	)		(273,887	)

Income from continuing operations after tax			1,207,392			1,243,635

Income from discontinued operations before tax			—			—
Income tax from discontinued operations	18		—			—

Income from discontinued operations after tax	42		—			—

NET INCOME FOR THE YEAR	28		1,207,392			1,243,635

Attributable to:
Shareholders of the Bank	28		1,207,392			1,243,634
Non-controlling interests			—			1

Earnings per share:		$			$
Basic earnings	28		11.95			12.31
Diluted earnings	28		11.95			12.31

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF

OTHER COMPREHENSIVE INCOME

for the years between January 1, and December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024			2023
		MCh$			MCh$

NET INCOME FOR THE YEAR	28		1,207,392			1,243,635

ITEMS NOT TO BE RECLASSIFIED TO PROFIT OR LOSS
Re-measurement of the liability (asset) for net defined benefits and actuarial results for other employee benefit plans	28		115			(75	)
Fair value changes of equity instruments designated as at fair value through other comprehensive income	28		(212	)		5,878
Fair value changes of financial liabilities designated as at fair value through profit or loss attributable to changes in the credit risk of the financial liability	28		—			—
Others	28		—			—
OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS BEFORE TAX			(97	)		5,803

Income tax on other comprehensive income that will not be reclassified to profit or loss	18		893			(1,567	)

TOTAL OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TO INCOME AFTER TAXES	28		796			4,236

ELEMENTS THAT CAN BE RECLASSIFIED TO PROFIT OR LOSS
Fair value changes of financial assets at fair value through other comprehensive income	28		(4,664	)		8,874
Cash flow hedges	28		(21,798	)		113,183
Participation in other comprehensive income of entities registered under the equity method	28		26			116

OTHER COMPREHENSIVE INCOME THAT WILL BE RECLASSIFIED TO INCOME BEFORE TAXES			(26,436	)		122,173

Income tax on other comprehensive income that can be reclassified to profit or loss	28		5,175			(32,365	)

TOTAL OTHER COMPREHENSIVE INCOME THAT WILL BE RECLASSIFIED TO PROFIT OR LOSS AFTER TAX	28		(21,261	)		89,808

TOTAL OTHER COMPREHENSIVE INCOME FOR THE YEAR	28		(20,465	)		94,044

CONSOLIDATED COMPREHENSIVE INCOME FOR THE YEAR			1,186,927			1,337,679

Attributable to:
Shareholders of the Bank			1,186,927			1,337,678
Non-controlling interests			—			1

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years between January 1, and December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

	Notes	2024			2023
		MCh$			MCh$
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit for the year before taxes			1,525,797			1,517,522
Income tax	18		(318,405	)		(273,887	)
Profit for the year after taxes			1,207,392			1,243,635
Charges (credits) to income (loss) that do not represent cash flows:
Depreciation and amortization	39		94,601			92,308
Impairment of non-financial assets	40		2,851			1,762
Provisions for credit losses			452,184			419,793
Provisions for contingencies	41		4,883			3,725
Additional provisions	41		—			—
Fair value of debt financial instruments held for trading at fair value through in profit or loss			(1,712	)		2,318
Change in deferred tax assets and liabilities	18		(16,678	)		(3,682	)
Net (income) loss from investments in companies with significant influence	34		(8,730	)		(13,409	)
Net (income) loss on sale of assets received in payments			(1,271	)		(1,629	)
Net (income) loss on sale of sale of fixed assets	35		(938	)		(2,971	)
Write-offs of assets received in payment	35		14,942			5,252
Other charges (credits) that do not represent cash flows			8,739			(9,953	)

Changes due to (increase) decrease in assets and liabilities affecting the operating flow:
Net ( increase ) decrease in accounts receivable from banks			1,853,194			(340,369	)
Net ( increase ) decrease in loans and accounts receivables from customers			(1,566,163	)		(1,062,775	)
Net ( increase ) decrease of debt financial instruments held for trading at fair value through profit or loss			297,364			(323,475	)
Net ( increase ) decrease in other assets and liabilities			(261,262	)		(116,853	)
Increase ( decrease ) in deposits and other demand obligations			942,650			(59,946	)
Increase ( decrease ) in repurchase agreements and securities loans			(55,184	)		(59,887	)
Increase ( decrease ) in deposits and other time deposits			(1,167,941	)		1,288,027
Sale of assets received in lieu of payment			19,556			14,227
Increase ( decrease ) in obligations with foreign banks			91,361			(42,479	)
Increase ( decrease ) in other financial obligations			(54,802	)		(4,646	)
Increase ( decrease ) in obligations with the Central Bank of Chile			(4,348,400	)		—
Net change in exchange rates, interest, readjustments and commissions accrued on assets and liabilities			547,180			248,462
Net increase ( decrease ) of debt financial instruments at fair value through other comprehensive income			1,611,197			257,613
Net (increase) decrease of financial instruments at amortized cost			506,337			(493,631	)
Total net cash flows provided by (used in) operating activities			171,350			1,041,417

CASH FLOWS FROM INVESTING ACTIVITIES:
Leasehold improvements	17		(872	)		(1,993	)
Fixed assets purchase	16		(16,354	)		(24,751	)
Fixed assets sale			1,294			3,626
Disposal of investments in companies			11,791			—
Acquisition of intangibles	15		(57,617	)		(59,955	)
Acquisition of investments in companies	14		—			—
Dividend received of investments in companies			3,416			5,698
Total net cash flows from (used in) investing activities			(58,342	)		(77,375	)

CASH FLOW FROM FINANCING ACTIVITIES:
Attributable to the interest of the owners:
Redemption and payment of interest of letters of credit			(639	)		(1,012	)
Redemption and payment of interest on current bonds			(1,447,751	)		(1,813,176	)
Redemption and payment of interest on subordinated bonds			(50,637	)		(52,199	)
Current bonds issuance	22		1,012,638			1,224,480
Subordinated bonds issuance			—			—
Payment of common stock dividends	28		(815,932	)		(866,929	)
Principal and interest payments for obligations under lease contracts	17		(29,991	)		(32,084	)
Attributable to non-controlling interest:
Dividend payment and/or withdrawals of paid-in capital in respect of the subsidiaries corresponding to the non-controlling interest			—			(1	)
Total net cash flows from (used in) financing activities			(1,332,312	)		(1,540,921	)

VARIATION IN CASH AND CASH EQUIVALENTS DURING THE YEAR			(1,219,304	)		(576,879	)

Effect of exchange rate changes on cash and cash equivalents			164,743			15,637

Opening balance of cash and cash equivalent	7		5,544,147			6,105,389

Final balance of cash and cash equivalent	7		4,489,586			5,544,147

	2024			2023
	MCh$			MCh$
Interest operating cash flow:
Interest and readjustments received		3,645,741			3,591,440
Interest and readjustments paid		(1,570,720	)		(2,138,298	)

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years between January 1, and December 31,

(Free translation of Consolidated Financial Statements originally issued in Spanish)

Reconciliation of liabilities arising from financing activities:

						Changes other than Cash
	12.31.2023		Net Cash Flow			Acquisition / (Disposals)		Foreign currency		UF Movement		12.31.2024
	MCh$		MCh$			MCh$		MCh$		MCh$		MCh$
Letters of credit		1,444		(639	)		—		—		45		850
Bonds		10,398,435		(485,750	)		—		186,420		658,993		10,758,098
Dividends paid		—		(815,932	)		—		—		—		(815,932	)
Obligations for lease contracts		101,480		(29,991	)		13,956		—		5,984		91,429
Dividend payment and/or withdrawals of paid-in capital in respect of the subsidiaries corresponding to the non-controlling interest		—		—			—		—		—		—
Total liabilities from financing activities		10,501,359		(1,332,312	)		13,956		186,420		665,022		10,034,445

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

for the years between January 1, and December 31, 2024 and 2023

(Free translation of Consolidated Financial Statements originally issued in Spanish)

		Attributable to shareholders of the Bank
	Note	Capital		Reserves		Accumulated other comprehensive income			Retained earnings from previous years and income (loss) for the year			Total			Non-controlling interests			Total Equity
		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$
Opening balances as of January 1, 2023			2,420,538		709,742		(69,802	)		1,797,847			4,858,325			2			4,858,327
Dividends distributed and paid	28		—		—		—			(866,929	)		(866,929	)		(1	)		(866,930	)
Application of provision for payment of common stock dividends			—		—		—			520,158			520,158			—			520,158
Provision for payment of common stock dividends	28		—		—		—			(611,949	)		(611,949	)		—			(611,949	)
Subtotal: transactions with owners during the year			—		—		—			(958,720	)		(958,720	)		(1	)		(958,721	)
Income for the year 2023	28		—		—		—			1,243,634			1,243,634			1			1,243,635
Other comprehensive income for the year	28		—		—		94,044			—			94,044			—			94,044
Subtotal: Comprehensive income for the year			—		—		94,044			1,243,634			1,337,678			1			1,337,679
Balances as of December 31, 2023			2,420,538		709,742		24,242			2,082,761			5,237,283			2			5,237,285

Opening balances as of January 1, 2024			2,420,538		709,742		24,242			2,082,761			5,237,283			2			5,237,285
Dividends distributed and paid	28		—		—		—			(815,932	)		(815,932	)		—			(815,932	)
Application of provision for payment of common stock dividends	28		—		—		—			611,949			611,949			—			611,949
Provision for payment of common stock dividends	28		—		—		—			(597,228	)		(597,228	)		—			(597,228	)
Subtotal: transactions with owners during the year			—		—		—			(801,211	)		(801,211	)		—			(801,211	)
Income for the year 2024	28		—		—		—			1,207,392			1,207,392			—			1,207,392
Other comprehensive income for the year	28		—		—		(20,465	)		—			(20,465	)		—			(20,465	)
Subtotal: Comprehensive income for the year			—		—		(20,465	)		1,207,392			1,186,927			—			1,186,927
Balances as of December 31, 2024			2,420,538		709,742		3,777			2,488,942			5,622,999			2			5,623,001

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

BANCO DE CHILE AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024 and 2023

(Free translation of Consolidated Financial Statements originally issued in Spanish)

Company information:

Banco de Chile is authorized to operate as a commercial bank since September 17, 1996, being, in conformity with the stipulations of article 25 of Law No. 19,396, the legal continuation of Banco de Chile resulting from the merger of the Banco Nacional de Chile, Banco Agrícola and Banco de Valparaiso, which was constituted by public deed dated October 28, 1893, granted before the Notary Public of Santiago, Mr. Eduardo Reyes Lavalle, authorized by Supreme Decree of November 28, 1893.

The Bank is a Corporation organized under the laws of the Republic of Chile, regulated by the Chilean Commission for the Financial Market (“CMF”). Since 2001, it is subject to the supervision of the Securities and Exchange Commission of the United States of America (“SEC”), in consideration of the fact that the Bank is registered on the New York Stock Exchange (“NYSE”), through a program of American Depositary Receipt (“ADR”).

Banco de Chile offers a broad range of banking services to its customers, ranging from individuals to large corporations. Additionally, the Bank offers international as well as treasury banking services, in addition to those offered by subsidiaries that include securities brokerage, mutual fund and investment management, insurance brokerage and financial advisory services.

Banco de Chile’s legal address is Ahumada 251, Santiago, Chile and its website is www.bancochile.cl.

The accompanying notes 1 to 49 are an integral part of these consolidated financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used:

(a)

Legal Dispositions:

Decree Law No. 3,538 of 1980, according to the text replaced by the first article of Law No. 21,000 that “Creates the Commission for the Financial Market”, provides in numeral 6 of its article 5 that the Commission for the Market Financial (“CMF”) may “set the standards for the preparation and presentation of reports, balance sheets, statements of situation and other financial statements of the audited entities and determine the principles under which they must keep their accounting”.

According to the current legal framework, banks must use the accounting principles provided by the CMF and in everything that is not dealt with by it or in contravention of its instructions, they must adhere to the generally accepted accounting principles, which correspond to the technical standards issued by the College of Accountants of Chile AG, coinciding with the International Financial Reporting Standards (“IFRS”) agreed by the International Accounting Standards Board (“IASB”). If there are discrepancies between these accounting principles of general acceptance and the accounting criteria issued by the CMF, the latter shall prevail.

The notes to the Consolidated Financial Statements contain additional information to that presented in the Consolidated Statement of Financial Position, Consolidated Statement of Income, Consolidated Statement of Other Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows. They provide narrative descriptions or disaggregation of such statements in a clear, relevant, reliable and comparable way.

(b)

Basis of Consolidation:

The Consolidated Financial Statements of Banco de Chile as of December 31, 2024 and 2023, have been consolidated with its subsidiaries, using the global integration method (line-by-line). They include preparation of individual Financial Statements of the Bank and companies that participate in the consolidation and it include adjustments and reclassifications necessary to homologue accounting policies and valuation criteria applied by the Bank. The Consolidated Financial Statements have been prepared using the same accounting policies for similar transactions and other events, in equivalent circumstances.

Significant intercompany transactions and balances (assets and liabilities, equity, income, expenses and cash flows) originated in operations performed between the Bank and its subsidiaries and between subsidiaries have been eliminated in the consolidation process. The non-controlling interest corresponding to the participation percentage of third parties in subsidiaries, which the Bank does not own directly or indirectly, has been recognized and is shown separately in the consolidated shareholders’ equity and consolidated income statement of Banco de Chile.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

−

Controlled companies (Subsidiaries):

Consolidated Financial Statements as of December 31, 2024 and 2023 incorporate Financial Statements of the Bank and the controlled companies (subsidiaries) in accordance with IFRS 10 “Consolidated Financial Statements”.

The entities controlled by the Bank and which form parts of the consolidation are detailed as follows:

				Interest Owned
				Direct				Indirect				Total
			Functional	December		December		December		December		December		December
Rut	Entity	Country	Currency	2024		2023		2024		2023		2024		2023
				%		%		%		%		%		%
96,767,630-6	Banchile Administradora General de Fondos S.A.	Chile	Ch$		99.98		99.98		0.02		0.02		100.00		100.00
96,543,250-7	Banchile Asesoría Financiera S.A.	Chile	Ch$		99.96		99.96		—		—		99.96		99.96
77,191,070-K	Banchile Corredores de Seguros Ltda.	Chile	Ch$		99.83		99.83		0.17		0.17		100.00		100.00
96,571,220-8	Banchile Corredores de Bolsa S.A.	Chile	Ch$		99.70		99.70		0.30		0.30		100.00		100.00
96,645,790-2	Socofin S.A.	Chile	Ch$		99.00		99.00		1.00		1.00		100.00		100.00
77,955,969-6	Operadora de Tarjetas B-Pago S.A. (*)	Chile	Ch$		99.90		—		0.10		—		100.00		—

(*)

On July 29, 2024, the public deed of incorporation of the subsidiary company of Banco de Chile was signed, Operadora de Tarjetas B-Pago S.A.

−

Investments in associates and joint ventures:

Associated entities are those over which the Bank has the capacity to exercise significant influence, without having control over the associate.

Investments in associates where exists significant influence, are accounted for using the equity method (Note No. 14).

Joint Ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

Investments defined as a “Joint Venture” will be registered according to the equity method.

The investment in other companies that, due to its characteristics, is defined as “Joint Venture” is Servipag Ltda.

−

Minority investments in other companies:

On initial recognition, the Bank and subsidiaries may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading and is not contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

−

Fund administration:

The Bank and its subsidiaries manage and administer assets held in mutual funds and other investment products on behalf of investors, perceiving a payment according to the service provided and market conditions. Managed resources are owned by third parties and, therefore, not included in the Consolidated Statements of Financial Position.

According to established in IFRS 10, for consolidation purposes is necessary to assess the role of the Bank and its subsidiaries with respect to the funds they manage, must determine whether that role is Agent or Principal.

The Bank and its subsidiaries manage on behalf and for the benefit of investors, acting in that relationship only as Agent. Under this category, and as provided in the aforementioned regulation, it does not control such funds when exercise its authority to make decisions. Therefore, as of December 31, 2024 and 2023 act as agent, and therefore do not consolidate any fund, no funds are part of the consolidation.

(c)

Non-controlling interest:

Non-controlling interest represents the share of losses, income and net assets of which, directly or indirectly, the Bank does not own. It is presented separately from the equity of the owners of the Bank in the Consolidated Statements of Income and the Consolidated Statements of Financial Position.

(d)

Use of Estimates and Judgment:

Preparing Consolidated Financial Statements requires Management to make judgments, estimations and assumptions that affect the application of accounting policies and the valuation of assets, liabilities, income and expenses presented. Real results could differ from these estimated amounts. The estimates made refer to:

Losses due to impairment of assets and liabilities (Notes No. 11, 13, 15, 16, 17 and No. 40);

Provision for credit risk (Notes No. 13, 26 and 41);

Expenses for amortization of intangible assets, depreciation of property and equipment and leased assets and lease liabilities (Notes No. 15, 16 and 17);

Income taxes and deferred taxes (Note No. 18);

Provisions (Note No. 24);

Contingencies and Commitments (Note No. 29);

Fair value of financial assets and liabilities (Notes No. 8, 11, 12, 21 and 44).

Estimates and relevant assumptions are regularly reviewed by the management in order to quantify certain assets, liabilities, income, expenses and commitments.

During the year ended December 31, 2024 there have been no significant changes in the estimates made.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(e)

Financial Assets:

The classification, measurement and presentation of financial assets has been carried out based on the standards issued by the CMF in the Compendium of Accounting Standards for Banks “CASB” or “CNCB” (as abbreviated in Spanish), considering the criteria described below:

Classification of financial assets:

On initial recognition, a financial asset is classified within the following categories: Financial assets held for trading at fair value through profit or loss; Financial assets not held for trading mandatorily valued at fair value through profit or loss; Financial assets designated as at fair value through profit or loss; Financial assets at fair value through other comprehensive income and Financial assets at amortized cost.

The criteria for classifying financial assets, which incorporates the standards defined in IFRS 9, depends on the business model with which the entity manages the assets and the contractual characteristics of the cash flows, commonly known as “Solely Payments of Principal and Interest” (SPPI) criterion.

The valuation of these assets should reflect how the Bank manages groups of financial assets and does not depend on the intent for an individual instrument.

A financial asset should be valued at amortized cost if both of the following conditions are met:

It is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

The contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest.

A debt financial instrument must be valued at fair value with changes in “Other comprehensive income” if the following two conditions are met:

It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

The contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt financial instrument will be classified at fair value through profit or loss whenever, due to the business model or the characteristics of its contractual cash flows, it is not appropriate to classify it in any of the other categories described.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

Valuation of financial assets:

Initial recognition:

Financial assets are initially recognized at fair value plus, in the case of a financial asset that is not carried at fair value through profit or loss, the transaction costs that are directly attributable to its purchase or issuance, using the Effective Interest Rate method (EIT). The calculation of the EIT includes all fees and other items paid or received that are part of the EIT. Transaction costs include incremental costs that are directly attributable to the acquisition or issuance of a financial asset.

Post measurement:

All variations in the value of financial assets due to the accrual of interest and items assimilated to interest are recorded in “Interest income” or “Interest expense” of the Consolidated Income Statement for the year in which the accrual occurred, except for trading derivatives that are not part of accounting hedges.

The changes in the valuations that occur after the initial registration for reasons other than those mentioned in the previous paragraph, are treated as described below, based on the categories in which the financial assets are classified.

Financial assets held for trading at fair value through profit or loss, Financial assets not held for trading mandatorily valued at fair value through profit or loss and Financial assets designated as at fair value through profit or loss:

In “Financial assets held for trading at fair value through profit or loss” will record financial assets whose business model aims to generate profits through purchases and sales or to generate results in the short term.

The financial assets recorded under “Financial assets not held for trading mandatorily valued at fair value through profit or loss” are assigned to a business model whose objective is achieved by obtaining contractual cash flows and/or selling financial assets but where the cash flows contracts have not met the conditions of the SPPI test.

In “Financial assets designated as at fair value through profit or loss” financial assets will be classified only when such designation eliminates or significantly reduces the inconsistency in the valuation or in the recognition that would arise from valuing or recognizing the assets on a different basis.

The assets recorded in these items are valued after their acquisition at their fair value and changes in their value are recorded, at their net amount, under “Financial assets and liabilities held for trading”, “Financial assets and liabilities financial assets not held for trading mandatorily valued at fair value through profit or loss” and “Financial assets and liabilities designated as at fair value through profit or loss” of the Consolidated Income Statement. Variations originated from exchange differences are recorded under “Foreign currency changes, UF indexation and accounting hedge” in the Consolidated Income Statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

Financial assets at fair value through other comprehensive income:

−

Debt financial instruments:

The assets recorded in this item are valued at their fair value, interest income and UF indexation of these instruments, as well as exchange differences and impairment arising, are recorded in the Consolidated Statement of Income, while subsequent variations in their valuation are temporarily recorded (for its amount net of taxes) in “Changes in the fair value of financial assets at fair value through other comprehensive income” of the Consolidated Statements of Other Comprehensive Income.

The amounts recorded in “Changes in the fair value of financial assets at fair value through other comprehensive income” continue to form part of the Bank’s consolidated equity until the asset is derecognized in the consolidated balance. In the case of selling these assets, the result is recognized in “Financial result for derecognizing financial assets and liabilities at amortized cost and financial assets at fair value with changes in others comprehensive income” of the Consolidated Income Statement.

Net losses due to impairment of financial assets at fair value through other comprehensive income produced in the year are recorded in “Impairment due to credit risk of other financial assets at amortized cost and financial assets at fair value through other comprehensive income” of the Consolidated Income Statement.

−

Equity financial instruments:

At the time of initial recognition, the Bank may make the irrevocable decision to present subsequent changes in fair value in other comprehensive income. Subsequent variations in this valuation will be recognized in “Changes in the fair value of equity instruments designated as at fair value through other comprehensive income”. The dividends received from these investments are recorded in “Income from investments in companies” of the Consolidated Income Statement. These instruments are not subject to the impairment model of IFRS 9.

−

Financial assets at amortized cost:

The assets recorded in this item of the Consolidated Statement of Financial Position are valued after their acquisition at their “amortized cost”, in accordance with the “effective interest rate” method. They are subdivided according to the following:

Investment under resale agreements and securities loans (Note No. 13 (a)).

Debt financial instruments (Note No. 13 (b)).

Due from banks (Note No. 13 (c)).

Loans and accounts receivable from customers (Note No. 13 (d)).

Losses due to impairment of these assets generated in each year are recorded in “Provisions for credit risk and loans and accounts receivable from customers” and “Impairment due to credit risk of other financial assets at amortized cost and financial assets at fair value through other comprehensive income” of the Consolidated Income Statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

−

Investment under resale agreements, obligations under repurchase agreements and securities loans:

Resale agreement operations are carried out as a form of investment. Under these agreements, financial instruments are purchased, which are included as assets in “Investment under resale agreements and securities loans”, which are valued according to the interest rate of the agreement through the amortized cost method. In accordance with current regulations, the Bank does not record as its own portfolio those papers purchased under resale agreements.

Repurchase agreement operations are also carried out as a form of financing, which are included as liabilities in “Obligations for repurchase agreements and securities loans”. In this regard, the investments that are sold subject to a repurchase obligation and that serve as collateral for the loan correspond to debt financial instruments. The obligation to repurchase the investment is classified in liabilities as “Obligations under repurchase agreements and securities loans” and is valued according to the interest rate of the agreement.

−

Debt financial instruments at amortized cost:

These instruments are recorded at their cost value plus accrued interest and UF indexation, less provision for impairment constituted when their recorded amount is greater than the estimated amount of recovery. Interest and UF indexation of debt financial instrument at amortized cost are included in “Interest income” and “UF indexation income”.

−

Loans and Advances to Banks:

This item shows the balances of operations with local and abroad banks, including the Central Bank of Chile and foreign Central Banks.

−

Loans and accounts receivable from customers:

Loans to customers include originated and purchased non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and which the Bank does not intend to sell immediately or in the short term.

(i)

Valuation method

They are initially measured at cost plus incremental transaction costs and income, and subsequently measured at amortized cost, using the effective interest rate method, less any impairment loss, except when the Bank defined some loans as hedged items, measured at fair value through profit or loss as described in letter (p) of this note.

(ii)

Lease contracts

These are included under the item “Loans to customers” correspond to periodic rent installments of contracts which meet the definition to be classified as financial leases and are presented at their nominal value net of unearned interest as of each year-end.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(iii)

Factoring transactions

They are valued for the amounts disbursed by the Bank in exchange for invoices or other commercial instruments representative of credit, with or without responsibility of the grantor, received in discount. Price differences between the amounts disbursed and the nominal value of the credits are recorded in the result as interest income, through the effective interest method, during the financing period. In those cases, where the transfer of these instruments it was made without responsibility of the grantor, it is the Bank who assumes the insolvency risks of those required to pay.

(f)

Credit risk allowance:

The Bank permanently evaluates the entire portfolio of loans and contingent loans, with the aim of establishing the necessary and sufficient provisions in a timely manner to cover the expected losses associated with the characteristics of the debtors and their credits, based on the payment and subsequent recovery.

Allowances are required to cover the risk of loan losses have been established in accordance with the instructions issued by the CMF. The loans are presented net of those allowances and, in the case of contingent loans are shown in liabilities under the item “Special provisions for credit risk”.

In accordance with what is stipulated by the CMF, models or methods are used based on an individual and group analysis of debtors, to establish allowance for loan losses. The Bank’s Board of Directors approves said models, as well as modifications to their design and application.

(i) Allowance for individual evaluations:

An individual analysis of debtors is applied to companies that are of such significance with respect to size, complexity or level of exposure to the bank, that they must be analyzed in detail.

Likewise, the analysis of borrowers focuses on its credit quality related to the capacity and willingness to meet their credit obligations, through sufficient and reliable information, and should also be analyzed in terms of guarantees, terms, interest rates, currency and revaluation, etc.

For purposes of establish the allowances, the banks must assess the credit quality, then classify to one of three categories of loans portfolio: Normal, Substandard and Non-Complying Loans, it must classify the debtors and their operations related to loans and contingent loans in the categories that apply.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

−

Normal Loans and Substandard Loans:

Normal loans: includes those debtors whose payment capacity allows them to meet their obligations and commitments, and according to the evaluation of their economic-financial situation no change in this condition are displayed. Loans classified in categories A1 through A6.

Substandard loans: includes all borrowers with insufficient payment capacity or significant deterioration of payment capacity that may be reasonably expected not to comply with all principal and interest payments obligations set forth in the credit agreement, showing a low flexibility to meet its financial obligations in the short term.

They are also part of the Substandard Portfolio those debtors who have shown arrears of more than 30 days in the recent past. The classifications assigned to this portfolio are categories B1 to B4 of the rating scale.

As a result of individual analysis of the debtors, the Bank must classify them in the following categories, assigning, subsequently, the percentage of probability of default and loss given default resulting in the following percentage of expected loss:

Type of portfolio	Category of the debtors	Probability of default (%) PD		Loss given default (%) LGD		Expected loss (%) EL
Normal Loans	A1		0.04		90.0		0.03600
	A2		0.10		82.5		0.08250
	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
Substandard Loans	B1		15.00		92.5		13.87500
	B2		22.00		92.5		20.35000
	B3		33.00		97.5		32.17500
	B4		45.00		97.5		43.87500

Allowances for Normal and Substandard Loans:

To determine the amount of allowances to be constitute for normal and substandard portfolio, previously should be estimated the exposure to subject to the allowances, which will be applied to respective expected loss, which consist of probability of default (PD) and loss given default (LGD) established for the category in which the debtor and/or guarantor belong, as appropriate.

The exposure affects to allowances applicable to loans plus contingent loans minus the amounts to be recovered by way of the foreclosure of financial or real guarantees of the operations. Loans mean the book value of credit of the respective debtor, while for contingent loans, the value resulting from to apply the indicated in No. 3 of Chapter B-3 of the CNCB.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

In the case of real guarantees, the Bank must demonstrate that the value assigned to this deduction reasonably reflects the value that it would obtain in the sale of the assets or capital instruments. Also, in qualified cases, the direct debtor’s credit risk may be substituted for the credit quality of the guarantor. In no case may the guaranteed securities be discounted from the amount of the exposure, since this procedure is only applicable when it comes to financial or real guarantees.

For calculation purposes, the following must be considered:

Provision debtor = (ESA-GE) x (PDdebtor /100) x (LGDdebtor /100) + GE x (PDguarantor /100) x (LGDguarantor /100)

Where:

ESA

Exposure subject to allowances, (Loans + Contingent Loans) – Financial Guarantees

Guaranteed exposure

However, the Bank must maintain a minimum provision level of 0.50% over normal portfolio and contingent loans.

−

Non-complying Loans:

The non-complying portfolio includes the debtors and their credits for which their recovery is considered remote, as they show an impaired or no payment capacity. This category comprises all debtors who have stopped paying their creditors or with visible evidence that they will stop doing so, as well as those for which a forced restructuring of their debts is necessary, reducing the obligation or postponing the payment of the principal or interest and, in addition, any debtor that has 90 days overdue or more in the payment of interest or principal of any credit. This portfolio is composed of the debtors belonging to categories C1 to C6 of the rating scale and all credits, including 100% of the amount of contingent loans, held by those same debtors.

For purposes to establish the allowances on the non-complying loans, the Bank disposes the use of percentage of allowances to be applied on the amount of exposure, which corresponds to the amount of loans and contingent loans that maintain the same debtor. To apply that percentage, must be estimated an expected loss rate, less the amount of the exposure the recoveries by way of foreclosure of financial or real guarantees that to support the operation and, if there are available specific background, also must be deducting present value of recoveries obtainable exerting collection actions, net of expenses associated with them. This loss percentage must be categorized in one of the six levels defined by the range of expected actual losses by the Bank for all transactions of the same debtor.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

These categories, their range of loss as estimated by the Bank and the percentages of allowance that must be applied on the amount of exposures, are listed in the following table:

Type of portfolio	Scale of risk	Expected Loss Range	Allowance (%)
Non-complying loans	C1	Up to 3%		2
	C2	More than 3% up to 20%		10
	C3	More than 20% up to 30%		25
	C4	More than 30 % up to 50%		40
	C5	More than 50% up to 80%		65
	C6	More than 80%		90

For calculation purposes, the following must be considered:

	Expected Loss Rate	= (E−R)/E
	Allowance	= E × (AP/100)

Where:

= Exposure Amount

= Recoverable Amount

= Allowance Percentage (according to the category in which the Expected Loss Rate should be assigned).

All credits of the debtor must be kept in the Default Portfolio until there is a normalization of their ability or payment behavior, without prejudice to punishment of each particular credit that meets the condition indicated in Title II of Chapter B-2 of the Compendium of Accounting Standards for Banks. To remove a debtor from the Default Portfolio, once the circumstances that lead to classification in this portfolio according to these regulations have been overcome, at least the following copulative conditions must be met:

No obligation of the debtor with the bank with more than 30 calendar days overdue.

No new refinances granted to pay its obligations.

At least one of the payments includes amortization of capital.

If the debtor has a credit with partial payment periods less than six months, has already made two payments.

If the debtor must pay monthly fees for one or more credits, has paid four consecutive dues.

The debtor does not have direct debts unpaid in the CMF recast information, except in the case of insignificant amounts.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(ii) Allowances for group evaluations

Group evaluations are relevant for residential mortgage and consumer loan exposures, in addition to commercial exposures related to student loans and exposures with debtors that simultaneously meet the following conditions:

The Bank has an aggregate exposure to the same counterparty of less than 20,000 UF. The aggregate exposure should require gross provisions or other mitigations. In addition, for its computation, mortgage loans must be excluded. In the case of off-balance sheet items, the gross amount is calculated by applying the credit conversion factors, defined in chapter B-3 of the CASB. To determine the aggregate exposure, the bank must consider the definition of corporate group established in Title II of Chapter 12-16 of the Actualized Standards Compilation.

Banks must carry out a complete and permanent monitoring of all operations with entities belonging to business groups. Considering the costs that may result the conformation of groups for all debtors, the bank must at least keep control and form groups, if applicable, for all debtors who maintain a current exposure greater than a minimum amount established by the banking institution which may not be greater than 1% of its effective equity at the time the definition of the group portfolio is made.

Each aggregate exposure to the same counterparty does not exceed 0.2% of the total commercial group portfolio. To avoid circular computation, the criterion will be checked only once.

For the remaining commercial credit exposures, the individual analysis model of the debtors must be applied.

The determination of the type of analysis (group or individual) must be carried out at the global consolidated level, once a year, or after significant adjustments in the Bank’s portfolio, such as mergers, acquisitions, purchases or significant portfolio sales.

To determine the allowances, the group evaluations require the formation of groups of loans with similar characteristics in terms of type of debtors and conditions agreed, to establish technically based estimates by prudential criteria and following both the payment behavior of the group that concerned as recoveries of defaulted loans and consequently provide the necessary provisions to cover the risk of the portfolio.

To determine its provisions, the Bank segments its debtors into homogeneous groups, according described above, associating to each group a determined probability of default and a percentage of recovery based in a historic analysis. The amount of provisions to register it will be obtained multiplied the total loans of respective group by the percentages of estimated default and of loss given the default, the estimated losses must be related to the type of portfolio and the term of the operations.

The Bank discriminates between provisions on the normal portfolio and on the portfolio in default, and those that protect the risks of contingent credits associated with those portfolios.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

−

Standard method of provisions for group portfolio

The standard methodologies presented below establish the variables and parameters that determine the provision factor for each type of portfolio that the CMF has defined as representative, according to the common characteristics shared by the operations that comprise them.

(a)

Residential mortgage portfolio

The provision factor applicable, represented by expected loss over the mortgage loans, it will depend to the past due of each credit and the relation, at the end of month, between outstanding capital and the value of the mortgage guarantees (CMG), according the following table:

Provision factor applicable according to delinquency and CMG
		Days of default at the end of the month								Non-Complying
CMG section	Concept	0		1-29		30-59		60-89		Portfolio
CMG ≤ 40%	PD (%)		1.0916		21.3407		46.0536		75.1614		100.0000
	LGD (%)		0.0225		0.0441		0.0482		0.0482		0.0537
	EAD (%)		0.0002		0.0094		0.0222		0.0362		0.0537
40% < CMG≤ 80%	PD (%)		1.9158		27.4332		52.0824		78.9511		100.0000
	LGD (%)		2.1955		2.8233		2.9192		2.9192		3.0413
	EAD (%)		0.0421		0.7745		1.5204		2.3047		3.0413
80% < CMG≤ 90%	PD (%)		2.5150		27.9300		52.5800		79.6952		100.0000
	LGD (%)		21.5527		21.6600		21.9200		22.1331		22.2310
	EAD (%)		0.5421		6.0496		11.5255		17.6390		22.2310
CMG > 90%	PD (%)		2.7400		28.4300		53.0800		80.3677		100.0000
	LGD (%)		27.2000		29.0300		29.5900		30.1558		30.2436
	EAD (%)		0.7453		8.2532		15.7064		24.2355		30.2436

Where:

Probability of default

LGD

Loss given default

EAD

Exposure at default

CMG

Outstanding loan capital /Mortgage Guarantee value

(b)

Commercial portfolio

To determine these allowances, the Bank considers the standard methods presented below, as applicable to commercial leasing operations or other types of commercial loans. Then, the applicable provision factor will be assigned considering the parameters defined for each method.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

●

Commercial Leasing Operations

The provision factor applies to the current value of commercial leasing operations (including the purchase option) and will depends on the default of each operation, the type of leased asset and the relationship between the current value of each operation and the leased asset value (PVB) at each month-end, as indicated in the following tables:

Probability of default (PD) applicable according to default and type of asset (%)
	Type of asset
Days of default of the operation at the month-end	Real estate		Non-real estate
0		0.79		1.61
1-29		7.94		12.02
30-59		28.76		40.88
60-89		58.76		69.38
Portfolio in default		100.00		100.00

Loss given the default (LGD) applicable according to PVB section and type of asset (%)
PVB = Current value of the operation / Value of the leased asset
PVB section	Real estate		Non-real estate
PVB ≤ 40%		0.05		18.20
40% < PVB ≤ 50%		0.05		57.00
50% < PVB ≤ 80%		5.10		68.40
80% < PVB ≤ 90%		23.20		75.10
PVB > 90%		36.20		78.90

The determination of the PVB relationship is made considering the appraisal value expressed in UF for real estate and in Chilean pesos for non-real estate, recorded at the time of the respective loan granting, taking into account possible situations that may be causing temporary increases in the assets prices at that time.

●

Generic commercial loans and factoring

For the factoring operations and other commercial loans, other than those indicated above, the provision factor, applicable to the amount of the placement and the exposure of the contingent loan risk, will depends on the default of each operation and the relationship that exists at the end of each month, between the obligations that the debtor has with the bank and the value of the collateral that protect them (PTVG), as indicated in the following tables:

Probability of default (PD) applicable according to default and PTVG section (%)
	With collateral				Without
Days of default at the month-end	PTVG≤100%		PTVG>100%		collateral
0		1.86		2.68		4.91
1-29		11.60		13.45		22.93
30-59		25.33		26.92		45.30
60-89		41.31		41.31		61.63
Portfolio in default		100.00		100.00		100.00

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

Loss given the default (LGD) applicable according to PTVG section (%)
Collateral (with / without)	PTVG section	Generic commercial operations or factoring without the responsibility of the transferor		Factoring with the responsibility of the transferor
With collateral	PTVG ≤ 60%		5.00		3.20
	60% < PTVG≤ 75%		20.30		12.80
	75% < PTVG ≤ 90%		32.20		20.30
	90% < PTVG		43.00		27.10
Without collateral			56.90		35.90

The collaterals used for the purposes of calculating the PTVG relationship of this method may be specific or general, including those that are simultaneously specific and general. Collateral can only be considered if, according to the respective coverage clauses, it was constituted in the first degree of preference in favor of the Bank and only guarantees the debtor’s credits with respect to which it is imputed (not shared with other debtors).

The invoices assigned in the factoring operations will not be considered for purposes of calculating the PTVG. The excess of collateral associated with mortgage loans referred to in numeral 3.1.1 Residential mortgage portfolio in Chapter B-1 of CASB may be considered, computed as the difference between 80% of the property commercial value, according to with the conditions set out in that framework, and the mortgage loan that guarantees.

For the calculation of the PTVG ratio, the following considerations must be taken into account:

Transactions with specific collaterals: when the debtor granted specific collateral for generic commercial loans and factoring, the PTVG ratio is calculated independently for each covered transaction, such as the division between the amount of the loans and the contingent loans exposure and the collateral’s value of the covered product.

ii.

Transactions with general collaterals: when the debtor granted general or general and specific collaterals, the Bank calculates the respective PTVG, jointly for all generic commercial loans and factoring and not contemplated in the preceding paragraph i), as the quotient between the sum of the amounts of the loans and exposures of contingent loans and the general, or general and specific collateral that, according to the scope of the remaining coverage clauses, safeguard the loans considered in the numerator aforementioned coverage ratio.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

The amounts of the guarantees used in the PTVG ratio of numerals i) and ii), different from those associated with excess guarantees from mortgage loans to which the residential mortgage portfolio refers, must be determined according to:

The last valuation of the collateral, be it appraisal or fair value, according to the type of real guarantee in question. For the determination of fair value, the criteria indicated in Chapter 7-12 (Fair Value of Financial Instruments) of the RAN should be considered.

Possible situations that could be causing temporary increases in the values of the collaterals.

Limitations on the amount of coverage established in their respective clauses.

−

Portfolio in default.

Includes all placements and 100% of the amount of the contingent loans, of the debtors that the closing of a month presents a delay equal to or greater than 90 days in the payment of the interest of the capital of any credit. It will also include debtors who are granted a credit to leave an operation that has more than 60 days of delay in their payment, as well as those debtors who were subject to forced restructuring or partial forgiveness of a debt.

They may exclude from the portfolio in default: a) mortgage loans for housing, which delinquent less than 90 days, unless the debtor has another loan of the same type with greater delinquency; and, b) credits for financing higher studies of Law No. 20,027, which do not yet present the non-compliance conditions indicated in Circular No. 3,454 of December 10, 2008.

All credits of the debtor must be kept in the Default Portfolio until there is a normalization of their ability or payment behavior, without prejudice to punishment of each particular credit that meets the condition indicated in Title II of Chapter B-2 of the CASB. To remove a debtor from the Default Portfolio, once the circumstances that lead to classification in this portfolio according to the present rules have been overcome, at least the following copulative conditions must be met:

No obligation of the debtor with the bank with more than 30 calendar days overdue.

No new refinances granted to pay its obligations.

At least one of the payments includes amortization of capital.

If the debtor has a credit with partial payment periods less than six months, has already made two payments.

If the debtor must pay monthly fees for one or more credits, has paid four consecutive dues.

The debtor does not appear with unpaid debts direct according to the information recast by CMF, except for insignificant amounts.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(iii) Provisions related to financing with FOGAPE COVID-19 guarantee.

On July 17, 2020, the CMF requested to determine specific provisions of the credits guaranteed by the FOGAPE COVID-19 guarantee, for which the expected losses were determined estimating the risk of each operation, without considering the substitution of credit quality of the guarantee, according to the corresponding individual or group analysis method, in accordance with the provisions of Chapter B-1 of the CASB. This procedure must be carried out in an aggregate manner, grouping all those operations to which the same deductible percentage is applicable.

The deductible is applied by the Fund Administrator, which must be borne by each financial institution and does not depend on each particular operation, but is determined based on the total of the balances guaranteed by the Fund, for each group of companies that have the same coverage, according to their net sales size.

(iv) Provisions related to financing with FOGAPE Reactivation guarantee.

To determine the provisions of the amounts guaranteed by the FOGAPE Reactivation, the Bank considers the substitution of the credit quality of the debtors for that of the FOGAPE, for all the types of financing indicated, up to the amount covered by the aforementioned guarantee. Naturally, the option to consider the risk attributable to FOGAPE may be made while said guarantee remains in force, without considering the capitalized interest, in accordance with the provisions of article 17 of the Fund Regulations.

Likewise, for the computation of the provisions of the amount not covered by the guarantee, corresponding to the debtors, the treatment must be differentiated according to the level of default of the refinanced credit and the grace period, which must consider the cumulative consecutive months grace period between the refinanced loan and other prior measures.

For this purpose, the following situations should be considered:

●

Refinancing with less than 60 days past due and less than 180 days of grace.

When the Bank grants the refinancing and is the current creditor, depending on the methodology used in accounting for provisions (standard or internal method) for the group portfolio, the computation of default and the expected loss parameters remain constant at the time to carry out the refinancing, as long as no payment is due.

In the case of debtors evaluated on an individual basis, their risk category is maintained at the time of rescheduling, which does not prevent them from being reclassified to the category that corresponds to them, in the event of a worsening of their payment capacity.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

●

Refinancing with past due between 60 and 89 days or grace periods greater than 180 days and less than 360 days.

The provisions established in the previous point apply, and at least one of the following conditions must also be met:

In its credit granting policies, the Bank considers at least the following aspects:

A robust procedure for the categorization of viable debtors, which considers at least the sector and its solvency and liquidity situation.

Efficient mechanisms for monitoring the debtor’s situation, with formally defined internal governance.

ii.

Interest is charged in the months of grace, in accordance with the guidelines established in article 15 letter a) of the Regulation, or there is a demand for payment in another credit with the bank. In the latter case, if noncompliance is observed, the carry forward rules contained in numerals 2.2 and 3.2 of Chapter B-1 of the CASB must be considered, depending on whether it is a credit subject to individual or group evaluation, respectively.

●

Refinancing with grace periods greater than 360 days.

The Bank must apply the provisions established in Chapter B-1 of the CASB, considering the operation as a forced renegotiation and, therefore, apply the provisions that correspond to the portfolio in default.

(v) Impairment of loans.

The impaired loans include the following assets, according to Chapter B-1 of the CASB of the CMF:

In case of debtors subject to individual assessment, includes credits from “Non-complying loans” those classified in categories B3 and B4 of “Substandard loans”.

Debtors subject to assessment group evaluation, the impaired portfolio includes all credits of the “Non-complying loans”.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(vi) Charge-offs.

As a general rule, the charge-offs are produced when the contractual rights on cash flows end. In case of loans, even if the above does not happen, it will proceed to charge-offs the respective asset balances.

The charge-off refers to derecognition of the assets in the Consolidated Statement of Financial Position, related to the respective transaction and, therefore, the part that could not be past-due if a loan is payable in installments, or a lease.

Charge-offs of loans to customers

The charge-off must be to make using credit risk provisions constituted, whatever the cause for which the charge-off was produced.

Write-offs for loans to customers and accounts receivable, other than from leasing operations, should be made in the following circumstances, whichever occurs first:

The Bank, based on all available information, concludes that will not obtain any cash flow of the credit recorded as an asset.

When the debt without executive title expires 90 days after it was recorded in asset.

At the expiration of the statute of limitations for actions to demand payment through an executive trial, or at the time of rejection or abandonment of the execution of the judgment by final court resolution.

When past-due term of a transaction reaches the charge-off term disposed below:

Type of Loan		Term
Consumer loans - secured and unsecured		6 months
Other transactions - unsecured		24 months
Commercial loans - secured		36 months
Residential mortgage loans		48 months

The term represents the time elapsed since the date on which payment of all or part of the obligation in default became due.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

Charge-offs of lease operations

These assets must be charge-offs against the following circumstances, whichever occurs first:

The Bank concludes that there is no possibility of the rent recoveries and the value of the property cannot be considered for purposes of recovery of the contract, either because the lessee has not the asset, for the property’s conditions, for expenses that involve its recovery, transfer and maintenance, due to technological obsolescence or absence of a history of your location and current situation.

When it complies the prescription term of actions to demand the payment through executory or upon rejection or abandonment of executory by court.

When a contract has been in default reach the period of time indicated below:

Type of Loan		Term
Consumer leases		6 months
Other non-real estate lease transactions		12 months
Real estate leases (commercial or residential)		36 months

The term represents the time elapsed since the date on which payment of all or part of the obligation in default became due.

(vii) Written-off loans recoveries

Cash recoveries on charge-off loans including loans that were reacquired are recorded directly in income in the Consolidated Statement of Income, as a reduction of the “Recoveries of written-off loans” item.

In the event of recoveries of assets, the income will be recognized in the results for the amount by which they are incorporated into the asset. The same criterion will be followed if the leased assets were recovered after the charge-off for a leasing operation, when such assets are incorporated into the asset.

Any renegotiation of a credit already written off does not give rise to income, as long as the operation remains to have an impaired quality; the actual payments received must be treated as recoveries of credits written off, as indicated above.

Therefore, renegotiated credit can be recorded as an asset only if it has not deteriorated quality; also recognizing revenue from activation must be recorded like recovery of loans.

The same criteria should apply in the case that was give credit to pay a charge-off loan.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(g)

Impairment due to credit risk of Financial assets at amortized cost and Financial assets at fair value through other comprehensive income (FVOCI):

In accordance with the established in Chapter A-2 of the CASB of the CMF, the impairment model of IFRS 9 will not be applied to loans in the category “Financial assets at amortized cost” (“Due from banks” and “Loans and accounts receivable from customers”), nor on “Contingent loans”, since the criteria for these instruments are defined in Chapters B-1 to B-3 of the CASB.

For the rest of the financial assets measured at Amortized Cost or FVOCI, the model on which impairment losses must be calculated corresponds to one of Expected Credit Loss (ECL) as established in IFRS 9.

Debt financial instruments whose subsequent valuation is at amortized cost or at FVOCI will be subject to impairment due to credit risk. On the contrary, those instruments at fair value through profit or loss do not require this measurement.

The measurement of impairment is carried out in accordance with a general impairment model that is based on the existence of 3 possible phases of the financial asset, the existence or not of a significant increase in credit risk and the condition of impairment. The 3 phases determine the amount of impairment that will be recognized as an expected credit loss, as well as the interest income that will be recorded at each reporting date. Each phase is listed below:

Phase 1: Incorporates financial assets whose credit risk has not increased significantly since initial recognition. Expected credit losses are recognized to 12-month. Interest is recognized based on the gross amount on the balance sheet.

Phase 2: Incorporates financial assets whose credit risk has increased significantly since initial recognition. Expected credit losses are recognized throughout the life of the financial asset. Interest is recognized based on the gross amount on the balance sheet.

Phase 3: Incorporates impaired financial assets. Expected credit losses are recognized throughout the life of the financial asset. Interest is recognized based on the net amount (gross amount on the balance sheet less allowance for credit risk).

−

Impairment of debt financial instruments measured at fair value through other comprehensive income.

The Bank applies the value impairment requirements for the recognition and measurement of a value correction for losses to financial assets that are measured at fair value through other comprehensive income in accordance with IFRS 9. This value adjustment for losses is recognized in Other Comprehensive Income (OCI) and does not reduce the carrying amount of the financial asset in the Consolidated Statement of Financial Position. The accumulated loss recognized in OCI is recycled in results when derecognizing the financial assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(h)

Financial liabilities:

Classification of financial liabilities:

Financial liabilities are classified in the following categories:

Financial liabilities at amortized cost.

Financial liabilities held for trading at fair value through profit or loss: Financial instruments are recorded in this item when the Bank’s objective is to generate profits through purchases and sales with these instruments. This item includes financial derivative trading contracts that are liabilities, which will be measured subsequently at fair value.

Financial liabilities designated as at fair value through profit or loss: The Bank has the option to irrevocably designate, at the time of initial recognition, a financial liability as measured at fair value through profit or loss if the application of this criterion eliminates or significantly reduces inconsistencies in the measurement or recognition, or if it is a group of financial liabilities, or a group of financial assets and liabilities, that is managed, and its performance evaluated, based on fair value in line with a risk management or investment strategy.

Valuation of financial liabilities:

Initial valuation:

They are initially recorded at fair value, less transaction costs that are directly attributable to the issuance of the instruments. Variations in the value of financial liabilities due to the accrual of interest, UF indexation and similar concepts are recorded under the headings “Interest expenses” and “UF indexation expenses” of the Consolidated Income Statement for the period in which the accrual occurred (see Note No. 30 and No. 31).

Subsequent valuation:

The changes in the valuations that will occur after the initial registration due to reasons other than those mentioned in the previous paragraph, are treated as described below, based on the categories in which the financial liabilities are classified.

Financial liabilities at amortized cost:

The liabilities recorded in this item are valued after their acquisition at their amortized cost, which is determined in accordance with the effective interest rate method (EIR).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(i)

Derecognition of financial assets and liabilities:

The Bank and its subsidiaries derecognize a financial asset from its Statement of Financial Position, when the contractual rights to the cash flows of the financial asset have expired or when the contractual rights to receive the cash flows of the financial asset are transferred during a transaction in which all ownership risks and rewards of the financial asset are transferred. Any portion of transferred financial assets that is created or retained by the Bank is recognized as a separate asset or liability.

When the Bank transfers a financial asset, it assesses to what extent it has retained the risks and rewards of ownership. In this case:

−

If substantially all risks and rewards of ownership of the financial asset have been transferred, it is derecognized, and any rights or obligations created or retained upon transfer are recognized separately as assets or liabilities.

−

If substantially all risks and rewards of ownership of the financial asset have been retained, the Bank continues to recognize it.

−

If substantially all risks and rewards of ownership of the financial asset are neither transferred nor retained, the Bank will determine if it has retained control of the financial asset. In this case:

If the Bank has not retained control, the financial asset will be derecognized, and any rights or obligations created or retained upon transfer will be recognized separately as assets or liabilities.

If the Bank has retained control, it will continue to recognize the financial asset in the Consolidated Financial Statement by an amount equal to its exposure to changes in value that can experience and recognize a financial liability associated to the transferred financial asset.

The Bank derecognizes a financial liability (or a portion thereof) from its Consolidated Statement of Financial Position if, and only if, it has extinguished or, in other words, when the obligation specified in the corresponding contract has been paid or settled or has expired.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(j)

Compensation of financial assets and liabilities:

Financial assets and liabilities are subject to compensation, so that their net amount is presented in the Consolidated Statement of Financial Position, when and only when the Bank has the right, legally enforceable, to offset the recognized amounts and intends to settle the net amount, or to realize the asset and settle the liability simultaneously.

Income and expenses are presented net only when permitted by accounting standards, or in the case of gains and losses arising from a group of similar transactions such as the Bank’s trading and foreign exchange activity.

(k)

Functional currency:

The items included in the Financial Statements of Banco de Chile and its subsidiaries are valued using the currency of the primary economic environment in which it operates (functional currency). The functional and presentation currency of the Consolidated Financial Statements of Banco de Chile is the Chilean peso, which is the currency of the primary economic environment in which the Bank operates, and also obeys the currency that influences the cost and income structure.

(l)

Transactions in foreign currency:

Transactions in currencies other than the functional currency are considered to be in foreign currency and are initially recorded at the exchange rate of the functional currency on the transaction date. Monetary assets and liabilities denominated in foreign currencies are converted using the exchange rate of the functional currency as of the date of the Consolidated Statement of Financial Position. All differences are recorded as a debit or credit to income.

As of December 31, 2024 and 2023, the Bank and its subsidiaries applied the exchange rate of accounting representation according to the standards issued by the CMF, for which the assets in dollars are shown at their equivalent value in Chilean pesos calculated using the following market exchange rate Ch$994.74 per US$1 (Ch$874.35 per US$1 as of December 31, 2023).

As of December 31, 2024, the amount of Ch$164,597 million corresponding to a net financial profit from exchange, indexation and accounting hedging of foreign currency (net gain of Ch$120,594 million as of December 31, 2023) shown in the Consolidated Statements of Income, includes the result from exchange operations, indexation and accounting hedges of foreign currency, including the conversion of assets and liabilities in foreign currency or indexed to the exchange rate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(m)

Operating Segments:

The Bank discloses information by segment in accordance with IFRS 8 (Note No. 6). The Bank’s operating segments are determined based on its different business units, considering the following:

That it conducts business activities from which income is obtained and expenses are incurred (including income and expenses relating to transactions with other components of the same entity).

That its operating results are reviewed regularly by the entity’s highest decision-making authority for operating decisions, to decide about resource allocation for the segment and evaluate its performance; and

For which separate financial information available.

(n)

Statement of cash flows:

The Consolidated Statement of Cash Flows shows the changes in cash and cash equivalents derived from operating activities, investment and financing activities during the year. The indirect method has been used in the preparation of this statement of cash flows.

For the preparation of Consolidated Financial Statements of Cash Flow, it is considered the following concepts:

Cash and cash equivalents: corresponds to the item “Cash and deposits in banks”, plus (minus) the net balance corresponding to operations with liquidation in progress that are shown in the Consolidated Statement of Financial Position, plus other cash equivalents such as investments in short-term debt financial instruments that meet the criteria to be considered “cash equivalents”, for which they must have an original maturity of 90 days or less from the date of acquisition, be highly liquid, easily convertible into amounts known amounts of cash as of the date of the initial investment, and that the financial instruments are exposed to an insignificant risk of changes in value.

Operating activities: corresponds to normal activities of the Bank, as well as other activities that cannot classify like investing or financing activities.

Investing activities: correspond to the acquisition, sale or disposition other forms, of long-term assets and other investments not included in cash and cash equivalents.

Financing activities: corresponds to the activities that produce changes in the amount and composition of the equity and the liabilities that are not included in the operating or investing activities.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(o)

Financial derivative contracts:

A “Financial Derivative” is a financial instrument whose value changes in response to changes in an observable market variable (such as an interest rate, exchange rate, the price of a financial instrument or a market index, including credit ratings), whose initial investment is very small in relation to other financial instruments with a similar response to changes in market conditions and which is generally settled at a future date.

The Bank maintains contracts of Derivative financial instruments, for cover the exposition of risk of foreign currency and interest rate. These contracts are recorded in the Consolidated Statement of Financial Position at their cost (included transactions costs) and subsequently measured at fair value. Derivative instruments are reported as an asset when their fair value is positive and as a liability when negative under the item “Derivative Instruments”.

Changes in fair value of derivative contracts held for trading purpose are included under “Financial Assets and Liabilities held for Trading”, on the Consolidated Statement of Income.

Additionally, the Bank includes in the valuation of the derivatives “Counterparty Credit Risk Adjustments, including: “CVA” or Credit Valuation Adjustment to reflect the counterparty credit risk in determining the fair value, as well as the “DVA” o Debit Valuation Adjustment to reflect the Bank’s own credit risk. Likewise, the Bank incorporates “Financing Adjustment”, also called “FVA” or Funding Valuation Adjustment, which captures the expected cost (or benefit) of financing (reinvesting) the cash flows of the derivative, with respect to a reference discount rate, when there are no collaterals (or they are imperfect).

Certain embedded derivatives in other financial instruments are treated as separate derivatives when their risk and characteristics are not closely related to those of the main contract and if the contract in its entirety is not recorded at its fair value with its unrealized gains and losses included in income.

(p)

Financial derivative contracts for accounting hedges:

The Bank has chosen to continue applying the hedge accounting requirements of IAS 39 when adopting IFRS 9.

At the moment of subscription of a derivative contract must be designated by the Bank as a derivative instrument for trading or hedging purposes.

If a derivative instrument is classified as a hedging instrument, it can be:

A hedge of the fair value of existing assets or liabilities or firm commitments, or;

A hedge of cash flows related to existing assets or liabilities or forecasted transactions.

A hedge relationship for accounting hedges purposes must comply with all of the following conditions:

at its inception, the hedge relationship has been formally documented;

it is expected that the hedge will be highly effective;

the effectiveness of the hedge can be measured in a reasonable manner; and

the hedge is highly effective with respect to the hedged risk on an ongoing basis and throughout the entire hedge relationship.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

The Bank presents and measures individual hedges (where there is a specific identification of hedged item and hedged instruments) by classification, according to the following criteria:

Fair value hedges: Changes in the fair value of a derivative hedging instrument, designated as a fair value hedge, are recognized in income under the lines “Net interest income” and “Net indexation income” and/or “Foreign currency changes, UF indexation and accounting hedge”, depending on the type of risk covered. The hedged item is also presented at fair value in relation to the risk being hedged; gains or losses attributable to the hedged risk are recognized in income under the lines “Net interest income” and “Net income from UF indexation” and adjust the book value of the item subject to the hedge.

Cash flow hedge: Changes in the fair value of financial instruments derivative designated like “cash flow hedge” are recognized in “Cash flow accounting hedge” included in the Consolidated Other Comprehensive Income, to the extent that hedge is effective and hedge is reclassified to income in the item “Net interest income” and “Net income from UF indexation” and/or “Foreign currency changes, UF indexation and accounting hedge”, when hedged item affects the income of the Bank produced for the “interest rate risk” or “foreign exchange risk”, respectively. If the hedge is not effective, the changes in the fair value are recognized directly in the results of the year under the caption “Other financial result”.

If the hedged instruments do not comply with criteria of cash flow accounting hedges, it expires or is sold, it suspends or executed, this hedge must be discontinued prospectively. Accumulated gains or losses recognized previously in the equity are maintained there until projected transactions occur, in that moment will be registered in Consolidated Statement of Income (in the item “Net interest income” and “Net income from UF indexation” and/or “Foreign currency changes, UF indexation and accounting hedge”, depend of the hedge), lesser than it foresees that the transaction will not execute, in this case it will be registered immediately in Consolidated Statement of Income (in the item “Net interest income” and “Net income from UF indexation” and/or “Foreign currency changes, UF indexation and accounting hedge”, depending on the hedge).

(q)

Intangible Assets:

Intangible assets (Note No. 15) are initially recognized at their acquisition cost, and are subsequently measured at their cost less any accumulated amortization or less any accumulated impairment losses.

Software or computer programs purchased by the Bank and its subsidiaries are accounted for at cost less accumulated amortization and impairment losses.

The subsequent expense in software assets is capitalized only when it increases the future economic benefit for the specific asset. All other expenses are recorded as an expense as incurred.

Amortization is recorded in income using the straight-line amortization method based on the estimated useful life of the software, from the date on which it is available for use. The estimated useful life of software is a maximum of 6 years.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(r)

Property and equipment:

Property and equipment (Note No. 16) includes the amount of land, real estate, furniture, computer equipment and other installations owned by the consolidated entities and which are for own use. These assets are stated at historical cost less depreciation and accumulated impairment. This cost includes expenses that have been directly attributed to the asset’s acquisition.

Depreciation is recognized in the Consolidated Statements of Income on a straight-line basis over the estimated useful lives of each part of an item of property and equipment.

The estimated average useful lives for the years 2024 and 2023 are as follows:

-	Buildings	50 years

-	Installations	10 years

-	Equipment	5 years

-	Supplies and accessories	5 years

Maintenance expenses related to those assets held for own uses are recorded as expenses in the year in which they are incurred.

(s)

Deferred taxes and income taxes:

The income tax provision of the Bank and its subsidiaries has been determined in conformity with current legal regulations.

The Bank and its subsidiaries recognize, when appropriate, deferred tax assets and liabilities for future estimates of tax effects attributable to temporary differences between the book and tax values of assets and liabilities. Deferred tax assets and liabilities are measured based on the tax rate expected to be applied, in accordance with current tax law, in the year that deferred tax assets are realized or liabilities are settled. The effects of future changes in tax legislation or tax rates are recognized in deferred taxes starting on the date of publication of the law approving such changes (Note No. 18).

Deferred tax assets are recognized only when it is likely that future tax profits will be sufficient to recover deductions for temporary differences. According to instructions from the CMF, deferred taxes are presented in the Consolidated Statement of Financial Position according with IAS 12 “Income Tax”.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(t)

Provisions, contingent assets and liabilities:

Provisions are liabilities involving uncertainty about their amount or maturity. They are recorded in the Consolidated Statement of Financial Position when the following requirements are jointly met:

a present obligation has arisen from a past event;

as of the date of the Financial Statements it is probable that the Bank or its subsidiaries have to disburse resources to settle the obligation; and

the amount of these resources can be reliably measured.

A contingent asset or liability is any right or obligation arising from past events whose existence will be confirmed by one or more uncertain future events which are not within the control of the Bank.

Contingent credits are understood as operations or commitments in which the Bank assumes a credit risk by committing itself to third parties, in the event of a future event, to make a payment or disbursement that must be recovered from its clients.

The following are classified as contingent credits in off-balance sheet information:

Undrawn credit lines: Considers the unused amounts of lines of credit that allow customers to make use of credit without prior decisions by the bank.

Undrawn credit lines with immediate termination: Considers those undrawn credit lines, defined in the previous numeral, that the bank can unconditionally cancel at any time and without prior notice, or for which its automatic cancellation is contemplated in case of deterioration of the debtor’s solvency, as permitted by the current legal framework and the contractual conditions established between the parties.

Contingent credits linked to the CAE: Correspond to credit commitments granted in accordance with Law No. 20,027 (“CAE”).

Letters of credit for goods circulation operations: Considers the commitments that arise, both to the issuing bank and to the confirming bank, from self-settled commercial letters of credit with a maturity period of less than 1 year, arising from merchandise circulation operations (for example, confirmed foreign or documentary letters of credit). Includes documentary letters of credit issued by the Bank, which have not yet been negotiated.

Debt purchase commitments in local currency abroad: Note issuance facility (NIF) and revolving underwriting facility (RUF) are considered.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

Transactions related to contingent events: Guarantee bonds with promissory notes referred to in Chapter 8-11 of the Actualized Standards Compilation are considered.

Warranty by endorsement and sureties: Includes warranty by endorsement, sureties and standby letters of credit referred to in Chapter 8-10 of the Actualized Standards Compilation. In addition, it includes the payment guarantees of buyers in factoring operations, as indicated in Chapter 8-38 of that Compilation.

Other credit commitments: It includes the unplaced amounts of committed loans that are to be disbursed on an agreed future date or triggered by events contractually defined with the client, as is the case with irrevocable credit lines tied to the progress of projects (for provisions purposes, both the gross exposure referred to in No. 3 and future increases in the amount of guarantees associated with committed disbursements must be considered).

Exposure to credit risk on contingent loans:

To calculate provisions for contingent credits, the amount of exposure to be considered will be equivalent to the percentage of the amounts of the contingent credits indicated below:

Type of contingent credit	Credit Conversion Factor
Undrawn credit lines with immediate termination		10	%
Contingent credits linked to the CAE		15	%
Letters of credit for goods circulation operations		20	%
Other undrawn credit lines		40	%
Debt purchase commitments in local currency abroad		50	%
Transactions related to contingent events		50	%
Warranty by endorsement and sureties		100	%
Other credit commitments		100	%
Other contingent loans		100	%

When dealing with transactions performed with customers with overdue loans, that exposure shall be equivalent to 100% of its contingent loans.

(u)

Provisions for minimum dividends:

According with the CASB of the CMF, the Bank records within liabilities the portion of net income for the year that should be distributed to comply with the Corporations Law or its dividend policy. For these purposes, the Bank establishes a provision in a complementary equity account within retained earnings (Note No. 25).

For purposes of calculating the provision of minimum dividends, the distributable net income is considered, which is defined as that which results from reducing or adding to the net income for the year, the correction of the value of the paid-in capital and reserves, due to the effects of the variation of the Consumer Price Index.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(v)

Employee benefits:

Employee benefits are all forms of consideration granted by an entity in exchange for services provided by employees or severance pay.

Short-term employee benefits are employee benefits (other than termination benefits) that are expected to be settled in full before twelve months after the end of the annual reporting period in which the employees have rendered the related services (Note No. 24 (c)).

Staff vacations

The annual costs of vacations and staff benefits are recognized on an accrual basis.

Other short-term benefits

The entity contemplates for its employees an annual incentive plan for meeting objectives and individual contribution to the company’s results, which are eventually delivered, consisting of a certain number or portion of monthly salaries and are provisioned based on the estimated amount to be distributed.

Other long-term employee benefits are all employee benefits other than short-term employee benefits, post-employment benefits, and termination benefits.

Employee benefits for termination of employment contract

The Bank has agreed with part of the staff the payment of compensation to those who have completed 30 or 35 years of permanence, in the event that they retired from the Institution. The proportional part accrued by those employees who will have access to exercise the right to this benefit and who at the end of the year have not yet acquired it has been incorporated into this obligation.

The obligations of this benefit plan are valued according to the projected credit unit method, including as variables the staff turnover rate, the expected salary growth and the probability of using this benefit, discounted at the current rate for long-term operations (5.71% as of December 31, 2024 and 5.77% as of December 31, 2023).

The discount rate used corresponds to the rate of 10-year Bonds in pesos of the Central Bank of Chile (BCP).

Gains and losses arising from changes in actuarial variables are recognized in Other Comprehensive Income. There are no other additional costs that should be recognized by the Bank.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Main Accounting Criteria Used, continued:

(w)

Earnings per share:

The basic earnings per share is determined by dividing the net income attributed to the Bank’s owners in a period and the weighted average number of shares outstanding during that period.

Diluted earnings per share are determined similarly to basic earnings, but the weighted average number of outstanding shares is adjusted to take into account the potential dilutive effect of the options on shares, warrants and convertible debt. At the end of the periods ended December 31, 2024 and 2023 there are no concepts to adjust.

(x)

Interest revenue and expense and UF indexation:

Interest income and expenses and UF indexation (Notes No. 30 and No. 31) are recognized in the Consolidated Statement of Income using the effective interest rate method. The effective interest rate is the rate which exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument (or, where appropriate, in a shorter period), to the carrying amount of the financial asset or financial liability. To calculate the effective interest rate, the Bank determines cash flows by taking into account all contractual conditions of the financial instrument, excluding future credit losses.

The effective interest rate calculation includes all fees and other amounts paid or received that form part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the purchase or issuance of a financial asset or liability.

In the case of the impaired portfolio and current loans with a high risk of irrecoverability of loans and accounts receivable from customers, the Bank has applied a conservative position of discontinuing the accrual of interest and UF indexation on an accrual basis in the Consolidated Statement of Income, when the credit or one of its installments has been 90 days default in its payment.

(y)

Commission income and expenses:

Revenue and expenses from fees (Note No. 32) are recognized in the Consolidated Income Statement using the criteria established in IFRS 15 “Revenue from contracts with customers”.

Under IFRS 15, revenues are recognized considering the terms of the contract with customers. Revenue is recognized when or as the performance obligation is satisfied by transferring the goods or services committed to the customer.

Under IFRS 15, revenues are recognized using different criteria depending on their nature. The most significant are:

−

Those that correspond to a singular act, when the act that originates them takes place.

−

Those that originate in transactions or services that are extended over time, during the life of such transactions or services.

−

Commissions on loan commitments and other fees related to credit operations are deferred (together with the incremental costs directly related to the placement) and recognized as an adjustment to the effective interest rate of the placement. In the case of loan commitments, when there is no certainty of the date of effective placement, the commissions are recognized in the period of the commitment that originates it on a linear basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

2.	Main Accounting Criteria Used, continued:

The fees registered as income by the Bank correspond mainly to:

−

Commissions for credit prepayment: These commissions are accrued at the time the credits are prepaid.

−

Commissions for lines of credit and overdrafts: These commissions are accrued in the period related to the granting of lines of credit and overdrafts in checking accounts.

−

Commissions for warranty by endorsement and letters of credit: These commissions are accrued in the period related to the granting by the bank of payment guarantees for real or contingent obligations of third parties.

−

Commissions for card services: Correspond to commissions accrued for the period, related to the use of credit cards, debit cards and other.

−

Commissions for account management: Includes commissions that accrue in the period related to the maintenance of current accounts and other deposit accounts.

−

Commissions for collections and payments: Includes commissions generated by the collection and payment services provided by the Bank.

−

Commissions for intermediation and management of securities: correspond to income from brokerage service, placements, administration and custody of securities.

−

Remuneration for administration of mutual funds, investment funds or others: corresponds to the commissions from the General Fund Administrator for the administration of third-party funds.

−

Remuneration for brokerage and insurance consulting services: Income from brokerage and insurance advice by the Bank or its subsidiaries is included.

−

Commissions for factoring operations services: Commissions for factoring operations services performed by the Bank are included.

−

Commissions for financial consulting services: commissions for financial advisory services performed by the Bank and its subsidiary are included.

−

Other commissions earned: includes income generated from foreign currency exchange, issuance bank guarantees, issuance of bank check, use of distribution channels, agreement on the use of a brand and placement of financial products and cash transfers, and recognition of payments associated with commercial alliances, among others.

Commission expenses include:

−

Commissions for card operations: commissions paid for credit and debit card operations are included.

−

Commissions for licensing the use of card brands.

−

Expenses for obligations of loyalty and merits programs for card customers.

−

Commissions for operations with securities: commissions for deposit and custody of securities and brokerage of securities are included.

−

Other commissions for services received: Commissions are included for guarantees and endorsements of Bank obligations, for foreign trade operations, for correspondent banks in the country and abroad, for ATMs and electronic fund transfer services.

−

Commissions for compensation of large value payments: corresponds to commissions paid to entities such as ComBanc, CCLV Contraparte Central, etc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

2.	Main Accounting Criteria Used, continued:

(z)

Impairment of non-financial assets:

The carrying amounts of the non-financial assets of the Bank and its subsidiaries, are reviewed throughout the year and especially at each reporting date, to determine if any indication of impairment exists. If such indication exists, the recoverable amount of the asset is then estimated.

(aa)

Financial and operating leases:

−

The Bank acting as lessor

Assets leased to customers under agreements which transfer substantially all the risks and rewards of ownership, with or without ultimate legal title, are classified as finance leases. When assets held are subject to a finance lease, the leased assets are derecognized and a receivable is recognized which is equal to the present value of the minimum lease payments, discounted at the interest rate implicit in the lease. Initial direct costs incurred in negotiating, and arranging a finance lease are incorporated into the receivable through the discount rate applied to the lease. Finance lease income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the finance lease.

Assets leased to customers under agreements, which do not transfer substantially all the risks, and rewards of ownership are classified as operating leases.

The leased investment properties, under the operating lease modality, are included in the Consolidated Statement of Financial Position as “Other assets” and depreciation is determined on the book value of these assets, applying a proportion of the value in a systematic way on the economic use of the estimated useful life. Lease income is recognized on a straight-line basis over the lease term.

−

The Bank acting as lessee

A contract is, or contains a lease, if one party has the right to control the use of an identified asset for a period of time in exchange for a regular payment (Note No. 17).

On the start date of a lease, a right-to-use assets leased is determined at cost, which includes the amount of the initial measurement of the lease liability plus other disbursements made.

The amount of the lease liability is measured at the present value of future lease payments that have not been paid on that date, which are discounted using the Bank’s incremental financing interest rate.

The right-of-use asset is measured using the cost model, less accumulated depreciation and accumulated losses due to impairment of value, depreciation of the right-of-use asset, is recognized in the Consolidated Statements of Income based on the linear depreciation method from the start date and until the end of the lease term.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

2.	Main Accounting Criteria Used, continued:

The monthly variation of the UF for the contracts established in said monetary unit should be treated as a new measurement, therefore the UF readjustment modifies the value of the lease liability, and in parallel, the amount of the right-of-use asset must be adjusted by this effect.

After the start date, the lease liability is measured by lowering the carrying amount to reflect the lease payments made and the modifications to the lease.

According to IFRS 16 “Leases” the Bank does not apply this rule to contracts whose duration is 12 months or less and those that contain an underlying asset of low value. In these cases, payments are recognized as a lease expense.

(ab)

Additional provisions:

In accordance to the CMF regulations, the banks have recorded additional allowances for its individually evaluated loan portfolio, taking into consideration the expected impairment of this portfolio. The calculation of this allowance is performed based on the Bank’s historical experience and considering possible future adverse macroeconomic conditions or circumstances that could affect a specific sector.

The provisions made in order to forestall the risk of macroeconomic fluctuations should anticipate situations reversal of expansionary economic cycles in the future, could translate into a worsening in the conditions of the economic environment and thus, function as a countercyclical mechanism accumulation of additional provisions when the scenario is favorable and release or assignment to specific provisions when environmental conditions deteriorate.

According to the above, additional provisions must always correspond to general provisions on commercial, consumer or mortgage loans, or segments identified, and in no case may be used to offset weaknesses of the models used by the Bank (Note No. 26).

As of December 31, 2024, the balance of additional provisions amounts to Ch$700,252 million (Ch$700,252 million in December 2023), which are presented in the caption “Special Provisions for Credit Risk” of liabilities in the Consolidated Statement of Financial Position.

(ac)

Fair value measurement:

“Fair value” is understood as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants in a principal (or more advantageous) market at the measurement date under current market conditions, independent whether that price is directly observable or estimated using another valuation technique. The most objective and usual reference of fair value is the price that would be paid in an active, transparent and deep market (“quoted price” or “market price”).

When available, the Bank estimates the fair value of an instrument using quoted prices in an active market for that instrument. A market is considered active if quoted prices are readily and regularly available and represent actual and regularly occurring market transactions on an arm’s length basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

2.	Main Accounting Criteria Used, continued:

If a market for a financial instrument is not active, the Bank establishes fair value using a valuation technique. These valuation techniques include the use of recent market transactions between knowledgeable, willing parties in an arm’s length transaction, if available, as well as references to the fair value of other instruments that are substantially the same, discounted cash flows and options pricing models.

The chosen valuation technique makes maximum use of information obtained in the market, using the least possible amount of data estimated by the Bank, incorporates all the factors that market participants would consider to establish the price, and will be consistent with generally accepted economic methodologies for calculating the price of financial instruments. The variables used by the valuation technique reasonably represent market expectations and reflect the return-risk factors inherent to the financial instrument. Periodically, the Bank calibrates the valuation techniques and tests it for validity using prices from observable current market transaction in the same instrument or based on available observable market information.

The best evidence of the fair value of a financial instrument at initial recognition is the transaction price (i.e. the fair value of the consideration given or received) unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. However, when transaction price provides the best evidence of fair value at initial recognition, the financial instrument is initially measured at the transaction price and any difference between this price and the value initially obtained from a valuation model is subsequently recognized in incomes.

On the other hand, it should be noted that the Bank has financial assets and liabilities offset each other’s market risks, based on which average market prices are used as a basis for determining their fair value.

Then, the fair value estimates obtained from models are adjusted for any other factors, such as liquidity risk or model uncertainties; to the extent that the Bank believes that a third-party market participant would take them into account in pricing a transaction.

The Bank’s fair value disclosures are included in Note No. 44.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

3.	New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted:

Standards approved and/or modified by the International Accounting Standards Board (IASB) and by the Commission for the Financial Market (CMF):

Standards and interpretations that have been adopted in these Consolidated Financial Statements.

As of the date of issuance of these Consolidated Financial Statements, the new accounting pronouncements issued by both the IASB and the CMF, which have been adopted by the Bank and its subsidiaries, are detailed below:

Accounting standards issued by IASB.

IFRS 16 Leases. Recognition of the lease liability in a sale with leaseback.

In September 2022, the IASB published an amendment to IFRS 16 related to the recognition of the lease liability in a sale with leaseback.

The amendment specifies the requirements that a seller-lessee must use to measure the lease liability that arises in a sale and leaseback transaction with objective that the seller-lessee does not recognize any gain or loss related to the right of use that it retains.

The modifications are effective for the periods of presentation of the Consolidated Financial Statements that begin on or after January 1, 2024, and early application is allowed.

The implementation of this amendment had no impact for Banco de Chile and its subsidiaries.

IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures - Supplier Financing Arrangements.

In May 2023, the IASB issued amendments to IAS 7 and IFRS 7. The amendments specify the current requirements to enhance the disclosure in the financial statements of supplier financing arrangements concerning liabilities, cash flows, and a company’s exposure to liquidity risk.

The amendments are effective for periods beginning on or after January 1, 2024, and early application is permitted.

The implementation of this amendment had no impact for Banco de Chile and its subsidiaries.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

Accounting standards issued by CMF.

Circular No. 2,355. Modifies the chapter 11-6 of the actualized compilation of standards for banks and the Circular No.8 for subsidiaries, regulations for the subsidiaries of banks of the article 70 letter b) and the general law of the banks in the payment card industry.

On date July 30, 2024, the CMF published Circular No. 2,355 that establish the norms for the subsidiaries of the banks that operate payment cards, aligning those with the existing rules of other card payment operators. These norms require that such subsidiaries subscribe in the unique register of card payment operators and comply with the instructions of the Circular No. 1, adapted to their legal environment.

Additionally, this Circular modified the Circular No. 8 of subsidiaries, incorporating information requirements that the payment card operators constituted as subsidiaries of a bank need to send to CMF. These requirements are related to cyber security, risk policies, significant events among others.

The instructions established in this circular took effect on July 30, 2024.

Given that the bank still is in the process of setting up its subsidiary Operadora de Tarjetas B-Pago S.A., the implementation of the new norms has not generated any impact so far.

Circulars issued in the process of implementing the Basel III standards.

During the year 2024, the CMF has issued the following standards related to the implementation of Basel III:

On February 9, 2024, Circular No. 2,343 was published, the regulations modify Chapter 21-11 “Factors and methodology for Banks or group of banks classified as systemically important and requirements that may be imposed as a consequence of this qualification” of the Actualized Compilation of Standards (“RAN” for its initials in Spanish), regarding the lower threshold to determine systemic banks. Additionally, adjustments are made to File R11 “Rating of systemically important banks”, and to Tables 11 “Institutional composition” and 106 “Sub-factors of the Systemically Important Index” of the Information System Manual (“MSI” for its initials in Spanish).

On February 9, 2024, Circular No. 2,344 was published, which provides clarifications to Chapter 21-20 of the Actualized Compilation of Standards (“RAN” for its initials in Spanish), on dispositions related to the promotion of market discipline and financial transparency through of the disclosure of significant and timely information from banking entities to market agents, as defined by the Basel Committee on Banking Supervision, for the standard commonly called “Pillar 3”.

In accordance with the requirements of these circulars, the changes were applied to file R11 and the Pillar 3 report.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

New Standards and interpretations that have been issued but their application date is not yet in force:

The following is a summary of new standards, interpretations and improvements to the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and the CMF that are not yet effective as of December 31, 2024, as follows:

Accounting standards issued by IASB.

IAS 28 Investments in Associates and Joint Venture and IFRS 10 Consolidated Financial Statements.

In September 2014, the IASB published this modification, which clarifies the scope of the profits and losses recognized in a transaction, that involves 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 gains or losses must be recognized against loss of control of a business.

Likewise, the gains or losses that result from the sale or contribution of a subsidiary that does not constitute a business (definition of IFRS 3) to an associate or joint venture must be recognized only to the extent of unrelated interests in the associate or joint venture.

During December 2015, the IASB agreed to set the effective date of this modification in the future, allowing its immediate application.

Banco de Chile and its subsidiaries will have no impact on the Consolidated Financial Statements as a result of the application of this amendment.

IAS 21 Effects of Changes in Foreign Exchange Rates.

In August 2023, the IASB published amendments to IAS 21. These amendments set out criteria that will allow companies to assess whether a currency is exchangeable and when it is not so, they can determine the exchange rate to use and the disclosures to provide.

The amendments are effective for periods beginning on or after January 1, 2025, and early application is permitted.

As of the date of issuance of these Consolidated Financial Statements, the implementation of this new standard will not have impacts for the Bank or its subsidiaries.

IFRS 18 – Presentation and Disclosure in Financial Statements.

In April 2024, IASB published a new accounting standard, IFRS 18 Presentation and Disclosure in Financial Statements, replacing the IAS 1 Presentation of Financial Statements.

This new standard aims to improve the usefulness of the presented and disclosed information so that the comparability of the financial information is enhanced, complying with the qualitative characteristics defined in the conceptual framework of the International Financial Reporting Standards (IFRS).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

According to the information provided by IASB, the standard introduces three new requirements:

Improvement comparability of the income statement.

Higher transparency in measuring the performance defined by the management.

More useful grouping of the information in the financial statements.

The standard will be effective for annual accounting periods beginning on or after January 1, 2027.

Due to these Consolidated Financial Statements being prepared according to CMF norms defined in CASB, the adoption of this standard is conditional to the modification of the CASB.

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

In May 2024, the IASB published the new accounting standard IFRS 19 Subsidiaries without Public Accountability and Disclosures, which will come into effect on January 1, 2027 with earlier application permitted.

This new standard allows to save in the preparation costs of the financial statements of subsidiaries without public interest, making possible to disclose less information and adapt the financial statements to the needs of the users when certain conditions are met.

The standard establishes that a subsidiary is in the public interest if:

It has debt instruments or capital that is subject to trade on a public market or if it is in the process of issuing such instruments to negotiate on a public market; or

Manages fiduciary assets for a broad group of external people as one of its principal businesses.

A subsidiary is eligible and can apply IFRS 19 in its consolidated or individual financial statements if:

It does not have public responsability; and

Its ultimate parent company or any other intermediate parent company issued consolidated financial statements that are available for public use and comply with the IFRS.

This new standard will not have impact on the Consolidated Financial Statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments

In May 2024, the IASB issued amendments to the classification and measurement requirements of IFRS 9, “Financial Instruments”, and to the disclosure requirements required by IFRS 7, “Financial Instruments: Disclosure Information” according to the following:

Derecognition of financial liabilities settled by electronic transfer.

The amendment allows an entity to consider that a financial liability (or part of it) that is settled using an electronic payment system is cancelled, expires or the liability otherwise qualifies for derecognition before the settlement date, if certain specified criteria are met. An entity that chooses to apply the deregistration option would be required to apply it to all settlements made through the same electronic payment system.

Classification of financial assets

The amendment provides guidance on how an entity can evaluate whether the contractual cash flows of a financial asset are consistent with a basic loan agreement, for classification and measurement purposes.

The amendment also improves the description of the term “non-recourse”, meaning that a financial asset has “non-recourse” characteristics if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specific assets.

Disclosures

For investments in equity financial instruments designated at fair value through other comprehensive income, an entity is required to disclose the fair value gain or loss presented in other comprehensive income during the period, separately demonstrating the fair value gain or loss that relates to investments derecognised in the period and the fair value gain or loss of the fair value that relates to the investments held at the end of the period.

Additional disclosures are required for financial assets and liabilities with contractual terms that reference a contingent event (including those that are linked to Environmental, Social and Governance factor (ESG)).

The amendments are effective for annual periods beginning on or after January 1, 2026. Early application is permitted.

The Bank is in the process of analyzing the impact of this new regulation.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

Annual improvements to IFRS.

In July 2024, the IASB published the draft Annual Improvements to IFRS accounting standards.

The IASB uses the annual improvement process to make necessary, but non-urgent, amendments to IFRS that will not be included as part of any other project. By presenting the amendments in a single document rather than as a series of fragmented changes, the IASB aims to ease the burden of the changes on all stakeholders. Below is a summary of the issues addressed:

●

IFRS 7 Financial Instruments: Information to be disclosed, gains or losses from derecognition, IFRS 7 is modified to replace obsolete references to paragraphs of IFRS 13 to be consistent with the wording of the latter standard.

●

Implementation Guide for IFRS 7 Financial Instruments: Disclosure Information, modifies the wording of the Implementation Guide to be consistent with the requirements of IFRS 7 and with the wording and concepts of IFRS 9 and IFRS 13. Clarifies that The implementation guide does not necessarily illustrate all the requirements of IFRS 7.

●

IFRS 9 Financial Instruments, derecognition of financial lease liabilities. IFRS 9 is amended by adding a cross-reference to clarify that when a lease liability has been extinguished in accordance with IFRS 9, the lessee must recognize any residual difference in results.

Transaction price; due to an inconsistency amends IFRS 9 to replace the paragraph that reads “its transaction price (as defined in IFRS 15 “Revenue from contracts with customers”)” with “the amount determined applying IFRS 15”.

●

IFRS 10 Consolidated Financial Statements, determination of the existence of a “de facto agent”. Amends IFRS 10 “Consolidated Financial Statements” to clarify an example where judgment is required to determine whether a party is acting as a de facto agent.

The amendments are effective for annual periods beginning on or after January 1, 2026. Early application is permitted.

The Bank is analyzing its impact.

Accounting standards issued by CMF.

Circular No. 2,346. Standard model of provisions for consumer loans. Modifies Chapter B-1 “Provisions for credit risk” and Chapter E “Transitional disposition” of the CNCB.

On March 6, 2024, the CMF published this circular that introduces the regulations that establish the Standardized Methodology for computing Provisions for Consumer Loans in Chapter B-1 of the CNCB.

The regulations establish matrices for determining the Probability of Default (PD) and Loss Given Default (LGD) parameters that must be used to calculate the minimum level of provisions.

The PD matrix is determined based on three factors (default in the bank, in the financial system and the possession of a mortgage loan).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

New Accounting Pronouncements Issued and Adopted, or Issued that have not yet been Adopted, continued:

Regarding the LGD, the model allows differentiation according to the type of credit (leasing or automotive, installments, cards and lines or other consumer) and also distinguishes those debtors with mortgage credit for housing in the system, allowing banks recognize a loss level adjusted to the specific characteristics of each operation.

The regulations of the standard provision model for consumer loans will come into force as of the accounting close of January 2025. Until that date, banks will continue to estimate the provisions of this portfolio only through their internal methodologies. The impact of the first application must be recorded in the entity’s income statement.

Based on the information available at the date of issuance of these Consolidated Financial Statements, the adoption of this new methodology will have an impact in the year 2025 on results of the order of Ch$69,000 million before tax. To address this impact, the Bank has resolved to release additional provisions at the time of implementing the new methodology.

Circular No. 2,347. Precisions of information requirements on subsidiaries, branches abroad and Banking Support Companies.

On April 24, 2024, the CMF published this circular that unifies and establishes in the General Background section of the MSI the instructions regarding the information requirements that banks must prepare and send to the CMF, regarding subsidiaries, branches in the abroad and Banking Support Companies (SAG), which include accounting, debtor, risk and other information.

The first shipment of the new information requirements will be from the first quarter of 2025.

The Bank carried out an analysis and is implementing the necessary measures to comply with this information requirement.

Accounting Changes:

During the year ended December 31, 2024, there have been no material or relative importance changes in accounting that affect the presentation of these Consolidated Financial Statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

5.	Relevant Events:

During the year 2024 Banco de Chile has reported as essential fact the following placements in the local market of senior, dematerialized and bearer bonds issued by Banco de Chile and registered in the Securities Registry of the Financial Market Commission:

Issue Date

Registration number in the Securities Registry

Serie

Amount

Currency

Maturity date

Average rate

January 15, 2024

11/2022

3,100,000

05/01/2028

3.72

January 16, 2024

11/2022

900,000

05/01/2028

3.72

January 31, 2024

11/2015

600,000

12/01/2031

3.20

February 8, 2024

11/2015

200,000

12/01/2032

3.15

March 15, 2024

11/2022

910,000

08/01/2028

3.25

March 21, 2024

11/2022

550,000

08/01/2028

3.32

March 22, 2024

11/2022

350,000

04/01/2028

3.29

March 25, 2024

11/2022

400,000

08/01/2028

3.29

March 26, 2024

11/2022

350,000

05/01/2035

3.35

March 27, 2024

11/2022

100,000

08/01/2028

3.24

April 4, 2024

11/2022

500.000

04/01/2028

3.28

April 12, 2024

11/2022

250,000

07/01/2025

3.10

April 17, 2024

11/2022

400,000

07/01/2025

3.02

May 8, 2024 (*)

20240002

850,000

12/01/2044

3.49

May 9, 2024 (*)

20240002

300,000

12/01/2044

3.49

May 17, 2024 (*)

20240002

150,000

12/01/2044

3.46

May 22, 2024 (*)

20240002

400,000

12/01/2044

3.46

June 4, 2024 (*)

20240002

1,000,000

12/01/2044

3.55

June 6, 2024

11/2022

100,000

01/01/2032

3.48

June 10, 2024

11/2022

100,000

04/01/2028

3.20

June 11, 2024

11/2022

240,000

05/01/2035

3.53

June 12, 2024

11/2022

590,000

04/01/2029

3.35

July 9, 2024

11/2022

350,000

04/01/2028

3.29

July 9, 2024

11/2022

1,100,000

04/01/2029

3.50

July 9, 2024

11/2022

50,000

04/01/2029

3.49

July 10, 2024

11/2022

150,000

04/01/2029

3.45

July 11, 2024

11/2022

1,050,000

01/01/2030

3.47

July 12, 2024

11/2022

200,000

01/01/2030

3.43

July 18, 2024 (*)

20240002

200,000

12/01/2044

3.50

July 23, 2024

11/2022

700,000

04/01/2029

3.23

July 24, 2024

11/2022

500,000

08/01/2028

3.04

September 27, 2024

11/2022

500,000

01/01/2032

2.50

September 30, 2024 (*)

20240002

2,100,000

12/01/2044

2.36

October 1, 2024 (*)

20240002

5,000,000

12/01/2040

2.37

(*)

The bonds have been registered under the Automatic Registration modality, with the registration number dated April 5, 2024.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Relevant Events, continued:

On January 25, 2024, the Board of Directors of Banco de Chile agreed to convene an Ordinary Shareholders’ Meeting for March 28, 2024 in order to propose, among other matters, the following distribution of profits for the year ended on December 31, 2023:

Deduct and withhold from the net income of the year, an amount equivalent to the effect of inflation of the paid capital and reserves according to the variation of the Consumer Price Index that occurred between November 2022 and November 2023, amounting to Ch$223,719,568,421 which will be added to retained earnings from previous years.

Distribute 80% in the form of dividend the remaining profit, corresponding to a dividend of Ch$8.07716286860 to each of the 101,017,081,114 shares of the Bank.

Consequently, it will be proposed a distribution as dividend of 65.6% of the profits for the year ending December 31, 2023.

During the year 2024 Banco de Chile has reported as an essential fact the following placements in the foreign market, issued under its Medium Term Notes Program (“MTN”):

Date		Amount		Currency		Maturity date		Average rate
February 2, 2024		433,000,000		HKD		02/09/2034			4.22	%

On March 28, 2024, during the Bank’s Ordinary Shareholders’ Meeting, the definitive appointment of Mr. Patricio Jottar Nasrallah as a Regular Director of Banco de Chile was made, a position he will hold until the next renewal of the Board of Directors.

On March 28, 2024, the subsidiary Banchile Corredores de Seguros Ltda. reported that the general manager, Mr. Jorge Yoma Rojas, will leave his position on April 15, 2024. Mr. Patricio Salles Delporte will take over as his replacement.

On July 5, 2024, in its resolution, Chilean Commission for the Financial Markets (¨CMF¨) decided to execute the agreement of its committee that authorized the bank together with its subsidiary Banchile Asesoría Financiera S.A. to constitute a company Operadora de Tarjetas as a subsidiary of the Bank. At the session on July 11, 2024, the board of directors approved to form the company.

On July 19, 2024, the subsidiary Banchile Corredores de Bolsa informed as a significant event that at the session on that date, the board of directors approved the resignation of Mr Juan Bissone as the director of the company.

On July 29, 2024, the public deed of incorporation of the subsidiary of Banco de Chile, Operadora de Tarjetas B-Pago S.A., was signed in the Santiago Notary Office of Mrs. María Pilar Gutiérrez Rivera. of its name, with domicile in the city of Santiago and of whose capital belongs to the Bank 99.9% and to Banchile Asesoría Financiera S.A. 0.1%.

In relation to the above, by resolution of July 5, 2024, the Financial Market Commission decided to execute the agreement of its Board that authorized the Bank, together with the subsidiary company Banchile Asesoría Financiera S.A. to establish the company that has been indicated, as a subsidiary company of the Bank, in accordance with the provisions of letter b) of article 70 of the General Banking Law, in addition to approving its statutes

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Relevant Events, continued:

On August 20, 2024, the subsidiary Banchile Corredores de Bolsa S.A. reported that the Board of Directors approved the Policy for Regular Operations with Related Parties, in accordance with the provisions of literal b) of the second paragraph of article 147 of the Law on Public Limited Companies.

This policy is available to interested parties and the general public at the offices of Banchile Corredores de Bolsa S.A. and in the “Regulatory and Financial Information” section of the website www.banchileinversiones.cl.

On August 20, 2024, the subsidiary Banchile Corredores de Bolsa S.A. informed that in the session celebrated on that date, the board of directors designated as director Mr. David Conzález Oviedo.

On August 26, 2024, the subsidiary Banchile Administradora General de Fondos S.A. informed that its board of directors approved the new policy of usual operations with related parties, in accordance with the provisions set forth in literal b) of article 147 of Law No. 18,046 on Public Limited Companies and in Title I of General Standard No. 501 of the Financial Market Commission.

This policy is available to interested parties and the general public at the offices of Banchile Gestión General de Fondos S.A. and in the “Regulatory and Financial Information” section of the website www.banchileinversiones.cl

On August 26, 2024, the subsidiary Banchile Administratora General de Fondos S.A. reported that in a session held on that date, the Board of Directors became aware and accepted the resignation presented by the Director, Mr. Francisco Brancoli Bravo.

Given the above, the Board of Directors agreed to appoint Ms. Paola Alam Auad as Director of Banchile Administrator General of Funds S.A.

On August 28, 2024, Banco de Chile reported that a new Usual Operations Policy has been approved in accordance with the provisions set forth in literal b) of article 147 of the Public Limited Companies Law that has been cited and in Title I of the Regulation. General Character No. 501 of the Financial Market Commission. The new Usual Operations Policy indicated will be available to interested parties and the general public at the corporate offices and on the website www.bancochile.cl, Our Bank/Corporate Government section.

On September 26, 2024, at a Board meeting, it was agreed to accept the binding purchase offer presented by the Chamber of Commerce of Santiago A.G. for 100% of the shares of Artikos Chile S.A. (“Artikos”), a business support company in which Banco de Chile owns 50% of its shares, while the remaining 50% belongs to Banco de Crédito e Inversiones (together with the Bank as the “Shareholders”).

The transaction is subject to both Shareholders selling 100% of the Artikos shares and compliance with various suspensive conditions, among which are the authorization of the CMF for the sale of 100% of the Artikos shares and that, If necessary, the transaction is approved by the National Economic Prosecutor’s Office.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Relevant Events, continued:

On November 19, 2024, the subsidiary Banchile Corredores de Bolsa S.A. reported that it was aware of and accepted the resignation presented by Mr. Hernán Arellano Salas to the position of General Manager of the subsidiary, effective as of that date.

Likewise, in his replacement, the Board of Directors appointed Mr. José Antonio Díaz Orellana as Interim General Manager.

On December 11, 2024, it is reported that Citigroup Inc. and Banco de Chile have modified the contract called Amended and Restated Trademark License Agreement signed on November 29, 2019, through which a license was granted to this banking institution to the use of certain brands. The modification refers to the scope of use of the brands that are the subject of the contract, limiting the authorization and possibility for the Bank to use them to certain products and services of business, corporate, investment banking and other businesses, as well as as well as outside the offices of the Banco Edwards network of Banco de Chile.

The Board of Directors of Banco de Chile, in session No. 3,021 of November 28, 2024, approved the modification to the aforementioned contract, in the terms provided in articles 146 et seq. of the Public Limited Companies Law.

On December 18, 2024, Banco de Chile reported that having met the conditions established by the parties and as reported in the relevant event as of September 26, the purchase agreement was signed for 100% of the shares of Artikos Chile S.A. (“Artikos”), a business support company in which Banco de Chile owns 50% of its shares, while the remaining 50% belongs to Banco de Crédito e Inversiones (being together with the Bank the “Shareholders”). “), which have been acquired by the Santiago Chamber of Commerce A.G.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Business Segments:

For management purposes, the Bank is organized into four segments, which are defined based on the types of products and services offered, and the type of client in which focuses as described below:

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 Residential 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.

	-	Socofin S.A.

	-	Operadora de Tarjetas B-Pago S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

6.	Business Segments, continued:

The financial information used to measure the performance of the Bank’s business segments is not comparable with similar information from other financial institutions because each institution relies on its own definitions. The accounting policies applied to the segments is the same as those described in the summary of accounting principles. The Bank obtains the majority of the results from: interest, indexation and commissions and financial operations and changes, discounting provisions for credit risk and operating expenses. Management is mainly based on these concepts to evaluate the performance of the segments and make decisions about the goals and allocations of resources of each unit. Although the results of the segments reconcile with those of the Bank at the total level, this is not necessarily the case in terms of the different concepts, given that management is measured and controlled individually and not on a consolidated basis, applying 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 and counterparty 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 its 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.

Taxes are managed at a corporate level and are not allocated to business segments.

For the years ended December 31, 2024 and 2023 there was no income from transactions with a customer or counterparty that accounted for 10% or more of the Bank’s total revenues.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Business Segments, continued:

The following table presents the income by segment for the years ended between January 1, and December 31, 2024 and 2023 for each of the segments defined above:

	Retail						Wholesale						Treasury						Subsidiaries						Subtotal						Consolidation adjustment						Total
	2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Net interest revenue (expense) and UF indexation		1,503,824			1,427,085			744,346			790,083			(105,115	)		(316,290	)		(3,759	)		(11,162	)		2,139,296			1,889,716			1,555			944			2,140,851			1,890,660
Net commissions revenue (expense)		323,869			321,736			90,259			81,680			4,376			1,725			190,192			173,416			608,696			578,557			(36,813	)		(32,627	)		571,883			545,930
Profit (loss) of financial operations		434			385			15,685			21,842			69,111			285,330			26,915			40,558			112,145			348,115			(1,555	)		(944	)		110,590			347,171
Foreign currency changes, indexation and accounting hedge		15,451			10,386			31,725			33,060			91,478			51,185			25,943			25,963			164,597			120,594			—			—			164,597			120,594
Other income		44,156			54,623			7,822			24,913			—			—			3,408			3,400			55,386			82,936			(10,074	)		(6,851	)		45,312			76,085
Income attributable to investments in other companies		9,291			9,624			6,385			3,366			980			342			396			1,100			17,052			14,432			—			—			17,052			14,432
Total operating revenue		1,897,025			1,823,839			896,222			954,944			60,830			22,292			243,095			233,275			3,097,172			3,034,350			(46,887	)		(39,478	)		3,050,285			2,994,872
Expenses from salaries and employee benefits		(382,339	)		(380,149	)		(110,857	)		(110,822	)		(2,974	)		(2,972	)		(86,397	)		(88,761	)		(582,567	)		(582,704	)		20			20			(582,547	)		(582,684	)
Administrative expenses		(337,630	)		(326,380	)		(75,140	)		(74,445	)		(1,676	)		(1,866	)		(48,178	)		(39,052	)		(462,624	)		(441,743	)		45,928			38,488			(416,696	)		(403,255	)
Depreciation and amortization		(78,908	)		(76,893	)		(8,002	)		(8,502	)		(302	)		(289	)		(7,389	)		(6,624	)		(94,601	)		(92,308	)		—			—			(94,601	)		(92,308	)
Impairment of non-financial assets		(1,147	)		(1,773	)		—			(5	)		—			—			(1,704	)		16			(2,851	)		(1,762	)		—			—			(2,851	)		(1,762	)
Other operating expenses		(25,583	)		(28,439	)		(9,973	)		(6,841	)		(2	)		(3	)		(1,420	)		(1,777	)		(36,978	)		(37,060	)		939			970			(36,039	)		(36,090	)
Total operating expenses		(825,607	)		(813,634	)		(203,972	)		(200,615	)		(4,954	)		(5,130	)		(145,088	)		(136,198	)		(1,179,621	)		(1,155,577	)		46,887			39,478			(1,132,734	)		(1,116,099	)
Expenses for credit losses		(364,712	)		(373,169	)		(26,033	)		9,164			(1,009	)		2,754			—			—			(391,754	)		(361,251	)		—			—			(391,754	)		(361,251	)
Income from operations		706,706			637,036			666,217			763,493			54,867			19,916			98,007			97,077			1,525,797			1,517,522			—			—			1,525,797			1,517,522
Income taxes																																						(318,405	)		(273,887	)
Income after income taxes																																						1,207,392			1,243,635

The following table presents assets and liabilities of the years ended December 31, 2024 and 2023 by each segment defined above:

	Retail				Wholesale				Treasury				Subsidiaries				Subtotal				Consolidation adjustment						Total
	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024			2023			2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$		MCh$

Assets		24,831,698		23,583,402		13,259,610		13,247,584		12,590,222		17,530,710		924,392		986,697		51,605,922		55,348,393		(227,179	)		(236,853	)		51,378,743		55,111,540
Current and deferred taxes																												716,698		681,012
Total assets																												52,095,441		55,792,552

Liabilities		18,014,282		19,123,031		10,790,972		10,671,254		17,199,083		20,219,857		694,984		777,170		46,699,321		50,791,312		(227,179	)		(236,853	)		46,472,142		50,554,459
Current and deferred taxes																												298		808
Total liabilities																												46,472,440		50,555,267

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Cash and Cash Equivalents:

The detail of the balances included under cash and cash equivalents as follows:

	2024		2023
	MCh$		MCh$
Cash and due from banks:
Cash		879,130		929,034
Deposit in Chilean Central Bank (*)		1,036,476		590,426
Deposit in abroad Central Bank		—		—
Deposits in domestic banks		12,767		17,052
Deposits in abroad banks		770,703		928,136
Subtotal – Cash and due from banks		2,699,076		2,464,648

Net transactions in the course of settlement (**)		88,851		58,634
Others cash equivalents (***)		1,701,659		3,020,865
Total cash and cash equivalents		4,489,586		5,544,147

The detail of the balances included under net ongoing clearance operations is as follows:

	2024			2023
	MCh$			MCh$
Assets
Documents drawn on other banks (clearing)		109,635			84,635
Funds receivable		262,821			330,870
Subtotal - assets		372,456			415,505

Liabilities
Funds payable		(283,605	)		(356,871	)
Subtotal - liabilities		(283,605	)		(356,871	)
Net transactions in the course of settlement		88,851			58,634

(*)

The level of funds in cash and in the Central Bank of Chile responds to regulations on reserve requirements that the bank must maintain on average in monthly periods.

(**)

Ongoing clearance operations correspond to transactions in which only the settlement remains that will increase or decrease the funds in the Central Bank of Chile or in foreign banks, normally within 12 or 24 business hours.

(***)

Refers to financial instruments that meet the criteria to be considered as “cash equivalents” as defined by IAS 7, i.e., to qualify as “cash equivalents” investments in debt financial instruments must be: short-term with an original maturity of 90 days or less from the date of acquisition, highly liquid, readily convertible to known amounts of cash from the date of initial investment, and that the financial instruments are exposed to an insignificant risk of changes in their value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Financial Assets Held for Trading at Fair Value through Profit or Loss:

The item detail is as follows:

	2024		2023
	MCh$		MCh$

Financial derivative contracts		2,303,353		2,035,376
Debt Financial Instruments		1,714,381		3,363,624
Other financial instruments		411,689		409,328
Total		4,429,423		5,808,328

(a)

The Bank as of December 31, 2024 and 2023, maintains the following asset portfolio of derivative instruments:

	Notional amount of contract with final expiration date in
	Demand				Up to 1 month				Over 1 month and up to 3 months				Over 3 months and up to 12 months				Over 1 year and up to 3 years				Over 3 year and up to 5 years				Over 5 years				Total				Fair Value Assets
	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Currency forward		—		—		3,289,559		3,659,459		1,712,274		2,410,522		2,589,278		2,517,954		916,016		355,774		26,575		13,536		4,442		—		8,538,144		8,957,245		227,670		212,475
Interest rate swap		—		—		376,933		847,401		2,249,606		1,859,664		5,133,205		6,593,100		7,253,517		7,157,777		4,172,518		3,743,282		4,250,312		4,709,682		23,436,091		24,910,906		732,395		883,689
Interest rate and cross currency swap		—		—		107,571		167,667		249,871		305,181		2,198,760		987,931		2,164,528		2,724,924		1,449,064		1,112,311		2,686,049		2,410,153		8,855,843		7,708,167		1,338,086		934,466
Call currency options		—		—		11,551		7,019		42,692		26,243		57,908		87,429		11,340		7,325		—		—		—		—		123,491		128,016		4,949		3,435
Put currency options		—		—		10,208		3,012		16,989		24,464		23,301		51,132		—		6,558		—		—		—		—		50,498		85,166		253		1,311
Total		—		—		3,795,822		4,684,558		4,271,432		4,626,074		10,002,452		10,237,546		10,345,401		10,252,358		5,648,157		4,869,129		6,940,803		7,119,835		41,004,067		41,789,500		2,303,353		2,035,376

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Financial Assets Held for Trading at Fair Value through Profit or Loss, continued:

b) The detail of the Debt Financial Instruments is the following:

	2024		2023
	MCh$		MCh$
Instruments issued by the Chilean Government and Central Bank of Chile
Debt financial instruments from the Central Bank of Chile		1,217,317		2,799,442
Bonds and Promissory notes from the General Treasury of the Republic		278,140		227,871
Other fiscal debt financial instruments		—		—

Other Instruments Issued in Chile
Debt financial instruments from other domestic banks		217,948		336,311
Bonds and trade effects from domestic companies		—		—
Other debt financial instruments issued in the country		—		—

Instruments Issued Abroad
Financial instruments from foreign governments or Central Banks		976		—
Financial debt instruments from foreign goverments and fiscal entities		—		—
Debt financial instruments from other foreign banks		—		—
Bonds and trade effects from foreign companies		—		—
Total		1,714,381		3,363,624

Under instruments of the State and Central Bank of Chile are classified instruments sold under repurchase agreements to clients and financial institutions, by an amount of Ch$10,038 million as of December 31, 2024 (as of December 31, 2023, there is no amount for this concept). The repurchase agreements have an average maturity of 2 days at the end of the year 2024. As part of the FCIC program, instruments delivered as collateral are included for an approximate amount of Ch$245,620 million as of December 31, 2023. There is no collateral delivered as of December 31, 2024 for this concept given that the program came to an end on July 1, 2024.

Instruments sold under repurchase agreements to clients and financial institutions include other debt financial instruments issued in the country, by an amount of Ch$89,223 million as of December 31, 2024 (Ch$121,586 million in December 2023). The repurchase agreements have an average maturity of 7 days at the end of the year 2024 (4 days in 2023).

Additionally, the Bank has investments in own-issued letters of credit for an amount equivalent to Ch$998 million as of December 31, 2024 (Ch$1,733 million in December 2023), which are presented as a reduction of the liability item “Debt Financial Instruments Issued”.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

Financial Assets Held for Trading at Fair Value through Profit or Loss, continued:

The detail of other financial instruments is as follows:

	2024		2023
	MCh$		MCh$
Mutual fund investments
Funds managed by related companies		408,121		405,752
Funds managed by third-parties		—		—

Equity instruments
Domestic equity instruments		1,039		2,058
Foreign equity instruments		—		485

Loans originated and acquired by the entity		—		—

Others		2,529		1,033
Total		411,689		409,328

Non-trading Financial Assets mandatorily measured at Fair Value through Profit or Loss:

As of December 31, 2024 and 2023, the Bank does not hold any non-trading financial assets mandatorily measured at fair value through profit or loss.

10.

Financial Assets and Liabilities designated as at Fair Value through Profit or Loss:

As of December 31, 2024 and 2023, the Bank does not hold financial assets and liabilities designated as at fair value through profit or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

11.	Financial Assets at Fair Value through Other Comprehensive Income:

The item detail is as follows:

	2024		2023
	MCh$		MCh$

Debt Financial Instruments		2,088,345		3,786,525
Other financial instruments		—		—
Total		2,088,345		3,786,525

(a)

As of December 31, 2024 and 2023, the detail of debt financial instruments is as follows:

	2024		2023
	MCh$		MCh$
Instruments issued by the Chilean Government and Central Bank of Chile
Debt financial instruments from the Central Bank of Chile		—		473,642
Bonds and Promissory notes from the General Treasury of the Republic		660,321		1,362,510
Other fiscal debt financial instruments		456		1,500

Other Instruments Issued in Chile
Debt financial instruments from other domestic banks		1,321,030		1,681,744
Bonds and trade effects from domestic companies		54,600		59,921
Other debt financial instruments issued in the country		—		—

Instruments Issued Abroad
Financial instruments from foreign Central Banks		—		—
Financial instruments from foreign governments and fiscal entities		48,883		43,294
Debt financial instruments from other foreign banks		—		163,914
Bonds and trade effects from foreign companies		3,055		—
Other debt financial instruments issued abroad		—		—
Total		2,088,345		3,786,525

Instruments of the Government and the Central Bank of Chile include instruments sold under repurchase agreements to clients and financial institutions for an amount of Ch$10,001 million in December 2024 (Ch$10,488 million in December 2023). The repurchase agreements have an average maturity of 2 days in December 2024 (3 days in December 2023). As part of the FCIC program, instruments delivered as collateral are included for an approximate amount of Ch$1,094,076 million as of December 31, 2023. There is no collateral delivered as of December 31, 2024 for this concept given that the program came to an end on July 1, 2024.

Under the same item, instruments that guarantee margins for cleared derivatives transactions are classified through Comder Contraparte Central S.A. for an amount of Ch$22,719 million as of December 31, 2024 (Ch$43,863 million as of December 31, 2023).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

11.

Financial Assets at Fair Value through Other Comprehensive Income, continued:

Under Instruments of Other National Institutions are classified instruments delivered as collateral as part of FCIC program for an approximate amount of Ch$850,506 million as of December 31, 2023. There are no collaterals as of December 31, 2024 for this concept. There is no collateral delivered as of December 31, 2024 for this concept given that the program ended on July 1, 2024.

As of December 31, 2024 the accumulated credit impairment for debt instruments at fair value through other comprehensive income was Ch$4,226 million (Ch$5,500 million as of December 31, 2023).

(b)

The analysis of changes in fair value and expected losses of debt instruments measured at fair value is as follows:

	Phase 1 Individual						Phase 2 Individual						Phase 3 Individual				Total
	Fair value			Impairment			Fair value			Impairment			Fair value		Impairment		Fair value			Impairment
	MCh$			MCh$			MCh$			MCh$			MCh$		MCh$		MCh$			MCh$

Balance as of January 1, 2023		3,967,392			9,496			—			—			—		—		3,967,392			9,496
Net change in balance		(159,617	)		(3,996	)		(30,124	)		(1,921	)		—		—		(189,741	)		(5,917	)
Change in fair value		8,718			—			156			—			—		—		8,874			—
Transfer to Phase 1		—			—			—			—			—		—		—			—
Transfer to Phase 2		(29,968	)		—			29,968			—			—		—		—			—
Transfer to Phase 3		—			—			—			—			—		—		—			—
Impact due to transfer between phases		—			—			—			1,921			—		—		—			1,921
Net impact due to impairment		—			—			—			—			—		—		—			—
Balance as of December 31, 2023		3,786,525			5,500			—			—			—		—		3,786,525			5,500

Balance as of January 1, 2024		3,786,525			5,500			—			—			—		—		3,786,525			5,500
Net change in balance		(1,694,790	)		(1,274	)		—			—			—		—		(1,694,790	)		(1,274	)
Change in fair value		(3,390	)		—			—			—			—		—		(3,390	)		—
Transfer to Phase 1		—			—			—			—			—		—		—			—
Transfer to Phase 2		—			—			—			—			—		—		—			—
Transfer to Phase 3		—			—			—			—			—		—		—			—
Impact due to transfer between phases		—			—			—			—			—		—		—			—
Net impact due to impairment		—			—			—			—			—		—		—			—
Balance as of December 31, 2024		2,088,345			4,226			—			—			—		—		2,088,345			4,226

(c)

Realized and unrealized gains and losses:

As of December 31, 2024, the portfolio of debt financial instruments includes an accumulated unrealized gain of Ch$4,478 million (unrealized gain of Ch$9,142 million as of December 31, 2023), recorded as an equity valuation adjustment.

Gross realized gains and losses on the sale of debt financial instruments, as of December 31, 2024 and 2023 are reported under “Net Financial income (expense)” (See Note No. 33).

The changes in realized gains and losses at the end of both years are the following:

	2024			2023
	MCh$			MCh$

Unrealized gains (losses)		3,386			4,352
Realized losses (gains) reclassified to income		(8,050	)		4,522
Subtotal		(4,664	)		8,874
Income tax on other comprehensive income		(710	)		(1,806	)
Net effect in equity		(5,374	)		7,068

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

12.	Derivative Financial Instruments for hedging purposes:

(a.1) As of December 31, 2024 and 2023, the Bank has the following asset portfolio of financial derivative instruments for accounting hedging purposes:

	Notional amount of contract with final expiration date in
	Demand				Up to 1 month				Over 1 month and up to 3 months				Over 3 months and up to 12 months				Over 1 year and up to 3 years				Over 3 year and up to 5 years				Over 5 years				Total				Fair value Assets
	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Derivatives held for fair value hedges		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—

Cash flow hedge derivatives
Interest rate swap and cross currency swap		—		—		—		—		—		—		131,987		141,416		274,935		36,553		122,041		232,293		306,460		222,615		835,423		632,877		73,959		49,065
Total		—		—		—		—		—		—		131,987		141,416		274,935		36,553		122,041		232,293		306,460		222,615		835,423		632,877		73,959		49,065

(a.2) As of December 31, 2024 and 2023, the Bank has the following debt portfolio of financial derivative instruments for accounting hedging purposes:

	Notional amount of contract with final expiration date in
	Demand				Up to 1 month				Over 1 month and up to 3 months				Over 3 months and up to 12 months				Over 1 year and up to 3 years				Over 3 year and up to 5 years				Over 5 years				Total				Fair value Liabilities
	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Derivatives held for fair value hedges		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—

Cash flow hedge derivatives
Interest rate swap and cross currency swap		—		—		—		—		—		—		134,806		—		34,060		218,840		132,265		180,325		875,618		983,782		1,176,749		1,382,947		141,040		160,602
Total		—		—		—		—		—		—		134,806		—		34,060		218,840		132,265		180,325		875,618		983,782		1,176,749		1,382,947		141,040		160,602

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

12.

Derivative Financial Instruments for hedging purposes, continued:

(b)

Fair value Hedges:

As of December 31, 2024 and 2023, no fair value hedges are held.

(c)

Cash flow Hedges:

(c.1)

The Bank uses cross currency swaps to hedge the risk from variability of cash flows attributable to changes in the interest rates and foreign exchange of foreign banks obligations and bonds issued abroad in US Dollars, Hong Kong dollars, Swiss Franc, Japanese Yens, Peruvian Sol, Australian Dollars, Euros, Norwegian kroner and Mexican peso. The cash flows of the cross currency swaps equal the cash flows of the hedged items, which modify uncertain cash flows to known cash flows derived from a fixed interest rate.

Additionally, these cross currency swap contracts are used to hedge the risk from variability of the Unidad de Fomento (“CLF”) in assets flows denominated in CLF until a nominal amount equal to the portion notional of the hedging instrument CLF, whose readjustment impact the item “Interest Revenue” of the Income Financial Statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

12.

Derivative Financial Instruments for hedging purposes, continued:

(c)

Cash flow Hedges, continued:

(c.2)

Below are the cash flows from bonds issued abroad objects of this hedge and the cash flows of the asset part of the derivative instrument:

	Demand				Up to 1 month						Over 1 month and up to 3 months						Over 3 months and up to 12 months						Over 1 year and up to 3 years						Over 3 years and up to 5 years						Over 5 years						Total
	2024		2023		2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
	MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Hedge element
Outflows:
Corporate Bond		—		—		(472	)		(450	)		(7,576	)		(4,686	)		(213,764	)		(199,047	)		(444,033	)		(245,308	)		(357,141	)		(552,541	)		(1,297,164	)		(1,252,534	)		(2,320,150	)		(2,254,566	)
Obligation USD		—		—		—			—			—			—			(104,466	)		(1,366	)		—			(88,096	)		—			—			—			—			(104,466	)		(89,462	)

Hedge instrument
Inflows:
Cross Currency Swap		—		—		472			450			7,576			4,686			318,230			200,413			444,033			333,404			357,141			552,541			1,297,164			1,252,534			2,424,616			2,344,028
Net cash flows		—		—		—			—			—			—			—			—			—			—			—			—			—			—			—			—

(c.3)

Below are the cash flows from underlying assets and the cash flows of the liability part of the derivative instrument:

	Demand				Up to 1 month						Over 1 month and up to 3 months						Over 3 months and up to 12 months						Over 1 year and up to 3 years						Over 3 years and up to 5 years						Over 5 years						Total
	2024		2023		2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
	MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Hedge element
Inflows:
Cash flows in CLF		—		—		1,588			1,506			2,804			1,834			306,543			182,057			377,477			328,074			304,794			467,263			1,280,412			1,314,328			2,273,618			2,295,062

Hedge instrument
Outflows:
Cross Currency Swap		—		—		(1,588	)		(1,506	)		(2,804	)		(1,834	)		(306,543	)		(182,057	)		(377,477	)		(328,074	)		(304,794	)		(467,263	)		(1,280,412	)		(1,314,328	)		(2,273,618	)		(2,295,062	)
Net cash flows		—		—		—			—			—			—			—			—			—			—			—			—			—			—			—			—

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

12.

Derivative Financial Instruments for hedging purposes, continued:

(c)

Cash flow Hedges, continued:

With respect to UF assets hedged; these are revalued monthly according to the variation of the UF, which is equivalent to monthly reinvest the assets until maturity of the relationship hedging.

	(c.4)	The unrealized results generated during the year 2024 by those derivative contracts that conform the hedging instruments in this cash flow hedging strategy, have been recorded with charge to equity amounting to Ch$21,798 million (credit to equity of Ch$113,183 million in December 2023). The net effect of taxes charge to equity amounts to Ch$15,913 million (credit to equity of Ch$82,624 million during the year December 2023).

		The accumulated balance for this concept as of December 31, 2024 corresponds to a charge in equity amounted to Ch$12,397 million (credit to equity of Ch$9,401 million as of December 2023).

(c.5)

The effect of the cash flow hedging derivatives that offset the result of the hedged instruments corresponds to a credit to income of Ch$100,566 million during the year 2024 (charge to results for Ch$4,320 million during the year December 2023).

(c.6)

As of December 31, 2024 and 2023, there is not any inefficiency in the cash flow hedge, because both, hedged item and hedge instruments, are mirrors of each other, it means that all variation of value attributable to rate and revaluation components are netted totally.

(c.7)

As of December 31, 2024 and 2023, the Bank does not have hedges of net investments in foreign business.

13.

Financial assets at amortized cost:

The item detail is as follows:

	2024			2023
	MCh$			MCh$

Rights from resale agreements and securities lending		87,291			71,822
Debt financial instruments		944,074			1,431,083
Loans and advances to Banks		666,815			2,519,180
Loans to customers:
Commercial loans		20,105,228			19,991,114
Residential mortgage loans		13,218,586			12,303,154
Consumer loans		5,551,306			5,306,436
Provisions established for credit risk:
Commercial loans provisions		(380,295	)		(366,205	)
Mortgage loans provisions		(38,400	)		(34,006	)
Consumer loans provisions		(367,389	)		(368,757	)
Total		39,787,216			40,853,821

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(a)

Rights from resale agreements and securities lending:

The Bank provides financing to its customers through resale agreements and securities lending, in which the financial instrument serves as collateral. As of December 31, 2024 and 2023, the detail is as follows:

	2024		2023
	MCh$		MCh$

Transaction with domestic banks		—		—

Transaction with foreign banks		—		—

Transaction with other domestic entities
Resale agreements		87,291		71,822
Rights from securities lending		—		—

Transaction with other foreign entities		—		—

Accumulated Impairment Value of Financial Assets at Amortized Cost - Rights from resale agreements and securities lending		—		—
Total		87,291		71,822

The Bank and its subsidiaries have received financial instruments that they can sell or give as collateral in case the owner of these instruments enters into default or in bankruptcy. As of December 31, 2024, the fair value of the instruments received amounts to Ch$87,157 million (Ch$73,874 million in December 2023).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(b)

Debt financial instruments:

At the end of each year, the balances presented under this item are as follows:

	2024			2023
	MCh$			MCh$
Instruments issued by the Chilean Government and Central Bank of Chile
Debt financial instruments from the Central Bank of Chile		—			507,261
Bonds and promissory notes from the General Treasury of the Republic		944,109			923,880
Other fiscal debt financial instruments		—			—

Other Financial Instruments issued in Chile		—			—

Financial Instruments issued Abroad		—			—

Accumulated Impairment Value of Financial Assets at Amortized Cost Debt Financial Instruments
Financial assets with no significant increase in credit risk since initial recognition (phase 1)		(35	)		(58	)
Financial assets with a significant increase in credit risk since initial recognition, but without credit impairment (phase 2)		—			—
Financial assets with credit impairment (phase 3)		—			—
Total		944,074			1,431,083

Under Instruments of the Government and the Central Bank of Chile, instruments are classified pledged as collateral as part of the FCIC program are included for an approximate amount of Ch$1,362,095 million as of December 31, 2023. There is no collateral delivered as of December 31, 2024 for this concept given that the program came to an end on July 1, 2024.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(c)

Loans and advances to Banks: At the end of each year, the balances presented under this item are as follows:

	Assets before allowances								Allowances established
	Normal		Substandard		Non-Complying				Normal			Substandard		Non-Complying
	Portfolio		Portfolio		Portfolio				Portfolio			Portfolio		Portfolio					Net
	Individual		Individual		Individual				Individual			Individual		Individual					Financial
As of December 31, 2024	Evaluation		Evaluation		Evaluation		Total		Evaluation			Evaluation		Evaluation		Total			Asset
	MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$			MCh$
Domestic Banks
Interbank loans of liquidity		300,042		—		—		300,042		(154	)		—		—		(154	)		299,888
Interbank loans commercial		—		—		—		—		—			—		—		—			—
Current accounts overdrafts		—		—		—		—		—			—		—		—			—
Chilean exports foreign trade loans		—		—		—		—		—			—		—		—			—
Chilean imports foreign trade loans		—		—		—		—		—			—		—		—			—
Credits with third countries		—		—		—		—		—			—		—		—			—
Non-transferable deposits in domestic banks		—		—		—		—		—			—		—		—			—
Other debts with domestic banks		—		—		—		—		—			—		—		—			—
Foreign Banks
Interbank loans of liquidity		—		—		—		—		—			—		—		—			—
Interbank loans commercial		269,191		—		—		269,191		(589	)		—		—		(589	)		268,602
Current accounts overdrafts		—		—		—		—		—			—		—		—			—
Chilean exports foreign trade loans		98,470		—		—		98,470		(145	)		—		—		(145	)		98,325
Chilean imports foreign trade loans		—		—		—		—		—			—		—		—			—
Credits with third countries		—		—		—		—		—			—		—		—			—
Current account deposits with foreign banks for derivatives transactions		—		—		—		—		—			—		—		—			—
Other non-transferable deposits with foreign banks		—		—		—		—		—			—		—		—			—
Other debts with foreign banks		—		—		—		—		—			—		—		—			—
Subtotal Domestic Bank and Foreign		667,703		—		—		667,703		(888	)		—		—		(888	)		666,815
Central Bank of Chile
Current account deposits for derivative transactions with a central counterparty		—		—		—		—		—			—		—		—			—
Other deposits not available		—		—		—		—		—			—		—		—			—
Other receivables		—		—		—		—		—			—		—		—			—
Foreign Central Banks
Current account deposits for derivatives transactions		—		—		—		—		—			—		—		—			—
Other deposits not available		—		—		—		—		—			—		—		—			—
Other receivables		—		—		—		—		—			—		—		—			—
Subtotal Central Bank of Chile and Foreign Central Banks		—		—		—		—		—			—		—		—			—
Total		667,703		—		—		667,703		(888	)		—		—		(888	)		666,815

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(c)

Loans and advances to Banks, continued:

	Assets before allowances								Allowances established
	Normal		Substandard		Non-Complying				Normal			Substandard		Non-Complying
	Portfolio		Portfolio		Portfolio				Portfolio			Portfolio		Portfolio					Net
	Individual		Individual		Individual				Individual			Individual		Individual					Financial
As of December 31, 2023	Evaluation		Evaluation		Evaluation		Total		Evaluation			Evaluation		Evaluation		Total			Asset
	MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$		MCh$			MCh$
Domestic Banks
Interbank loans of liquidity		—		—		—		—		—			—		—		—			—
Interbank loans commercial		—		—		—		—		—			—		—		—			—
Current accounts overdrafts		—		—		—		—		—			—		—		—			—
Chilean exports foreign trade loans		—		—		—		—		—			—		—		—			—
Chilean imports foreign trade loans		—		—		—		—		—			—		—		—			—
Credits with third countries		—		—		—		—		—			—		—		—			—
Non-transferable deposits in domestic banks		—		—		—		—		—			—		—		—			—
Other debts with foreign banks		—		—		—		—		—			—		—		—			—
Foreign Banks
Interbank loans of liquidity		—		—		—		—		—			—		—		—			—
Interbank loans commercial		205,362		—		—		205,362		(449	)		—		—		(449	)		204,913
Current accounts overdrafts		—		—		—		—		—			—		—		—			—
Chilean exports foreign trade loans		213,636		—		—		213,636		(302	)		—		—		(302	)		213,334
Chilean imports foreign trade loans		—		—		—		—		—			—		—		—			—
Credits with third countries		—		—		—		—		—			—		—		—			—
Current account deposits with foreign banks for derivatives transactions		—		—		—		—		—			—		—		—			—
Other non-transferable deposits with foreign banks		—		—		—		—		—			—		—		—			—
Other debts with foreign banks		—		—		—		—		—			—		—		—			—
Subtotal Domestic Bank and Foreign		418,998		—		—		418,998		(751	)		—		—		(751	)		418,247
Central Bank of Chile
Current account deposits for derivative transactions with a central counterparty		—		—		—		—		—			—		—		—			—
Other deposits not available		2,100,933		—		—		2,100,933		—			—		—		—			2,100,933
Other receivables		—		—		—		—		—			—		—		—			—
Foreign Central Banks				—		—							—		—
Current account deposits for derivatives transactions		—		—		—		—		—			—		—		—			—
Other deposits not available		—		—		—		—		—			—		—		—			—
Other receivables		—		—		—		—		—			—		—		—			—
Subtotal Central Bank of Chile and Foreign Central Banks		2,100,933		—		—		2,100,933		—			—		—		—			2,100,933
Total		2,519,931		—		—		2,519,931		(751	)		—		—		(751	)		2,519,180

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(d)

Loans to Customers: At the end of each year, the balances presented under this item are as follows:

	Assets before allowances												Allowances established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties						Net
Loans to Customers	Evaluation				Evaluation		Evaluation						Evaluation						Evaluation			Evaluation						Sub			Fogape						Financial
As of December 31, 2024	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			Covid-19			Total			Asset
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans
Commercial loans		10,512,364		3,835,557		194,728		219,467		350,892		15,113,008		(96,621	)		(25,815	)		(2,150	)		(62,373	)		(75,510	)		(262,469	)		(2,764	)		(265,233	)		14,847,775
Chilean exports foreign trade loans		1,428,828		3,006		7,008		10,473		395		1,449,710		(21,952	)		(79	)		(443	)		(1,783	)		(208	)		(24,465	)		—			(24,465	)		1,425,245
Accrediting foreign trade loans negotiated in terms of Chilean imports		162		—		—		—		—		162		(15	)		—			—			—			—			(15	)		—			(15	)		147
Chilean imports foreign trade loans		503,824		46,538		5,694		3,203		3,038		562,297		(21,019	)		(1,255	)		(799	)		(2,064	)		(1,722	)		(26,859	)		—			(26,859	)		535,438
Foreign trade credits to third countries		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Current account debtors		97,422		87,836		5,269		4,051		2,241		196,819		(2,672	)		(2,102	)		(497	)		(2,102	)		(1,062	)		(8,435	)		—			(8,435	)		188,384
Credit card debtors		25,500		84,721		1,120		1,441		10,968		123,750		(1,061	)		(2,910	)		(157	)		(917	)		(5,999	)		(11,044	)		—			(11,044	)		112,706
Factoring transactions		555,766		36,830		4,114		27		175		596,912		(10,887	)		(787	)		(292	)		(25	)		(63	)		(12,054	)		—			(12,054	)		584,858
Commercial lease transactions (1)		1,614,628		296,248		28,243		37,964		13,941		1,991,024		(3,808	)		(2,086	)		(99	)		(10,831	)		(2,967	)		(19,791	)		(397	)		(20,188	)		1,970,836
Student loans		—		48,804		—		—		3,476		52,280		—			(2,148	)		—			—			(2,417	)		(4,565	)		—			(4,565	)		47,715
Other loans and accounts receivable		8,764		965		121		8,141		1,275		19,266		(300	)		(18	)		(11	)		(6,620	)		(488	)		(7,437	)		—			(7,437	)		11,829
Subtotal		14,747,258		4,440,505		246,297		284,767		386,401		20,105,228		(158,335	)		(37,200	)		(4,448	)		(86,715	)		(90,436	)		(377,134	)		(3,161	)		(380,295	)		19,724,933
Residential mortgage loans
Letters of credit		—		1,267		—		—		123		1,390		—			(2	)		—			—			(7	)		(9	)		—			(9	)		1,381
Endorsable mortgage loans		—		10,603		—		—		446		11,049		—			(7	)		—			—			(39	)		(46	)		—			(46	)		11,003
Loans with mutual funds financed by mortgage bonds		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Other residential lending		—		12,714,211		—		—		327,154		13,041,365		—			(15,623	)		—			—			(21,520	)		(37,143	)		—			(37,143	)		13,004,222
Residential lease transactions (1)		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Other loans and accounts receivable		—		154,542		—		—		10,240		164,782		—			(227	)		—			—			(975	)		(1,202	)		—			(1,202	)		163,580
Subtotal		—		12,880,623		—		—		337,963		13,218,586		—			(15,859	)		—			—			(22,541	)		(38,400	)		—			(38,400	)		13,180,186
Consumer loans
Consumer loans in installments		—		3,007,298		—		—		246,349		3,253,647		—			(137,888	)		—			—			(142,358	)		(280,246	)		—			(280,246	)		2,973,401
Current account debtors		—		270,268		—		—		13,657		283,925		—			(12,566	)		—			—			(5,433	)		(17,999	)		—			(17,999	)		265,926
Credit card debtors		—		1,981,073		—		—		30,976		2,012,049		—			(49,598	)		—			—			(18,229	)		(67,827	)		—			(67,827	)		1,944,222
Consumer lease transactions (1)		—		320		—		—		—		320		—			(4	)		—			—			—			(4	)		—			(4	)		316
Other loans and accounts receivable		—		4		—		—		1,361		1,365		—			(1	)		—			—			(1,312	)		(1,313	)		—			(1,313	)		52
Subtotal		—		5,258,963		—		—		292,343		5,551,306		—			(200,057	)		—			—			(167,332	)		(367,389	)		—			(367,389	)		5,183,917
Total		14,747,258		22,580,091		246,297		284,767		1,016,707		38,875,120		(158,335	)		(253,116	)		(4,448	)		(86,715	)		(280,309	)		(782,923	)		(3,161	)		(786,084	)		38,089,036

(1)

In this item, the Bank finances its clients the acquisition of movable and immovable property through financial lease agreements. As of December 31, 2024, Ch$992,848 million correspond to finance leases on real estate assets and Ch$998,496 million correspond to finance leases on movable property.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(d)

Loans to Customers, continued:

	Assets before allowances												Allowances established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties						Net
Loans to Customers	Evaluation				Evaluation		Evaluation						Evaluation						Evaluation			Evaluation						Sub			Fogape						Financial
As of December 31, 2023	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			Covid-19			Total			Asset
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans
Commercial loans		10,855,599		3,910,753		185,244		197,361		321,133		15,470,090		(92,816	)		(26,083	)		(6,842	)		(54,446	)		(74,174	)		(254,361	)		(8,604	)		(262,965	)		15,207,125
Chilean exports foreign trade loans		1,122,027		3,629		5,672		6,522		158		1,138,008		(21,669	)		(110	)		(26	)		(3,981	)		(90	)		(25,876	)		—			(25,876	)		1,112,132
Accrediting foreign trade loans negotiated in terms of Chilean imports		94		—		—		—		—		94		(8	)		—			—			—			—			(8	)		—			(8	)		86
Chilean imports foreign trade loans		529,967		41,565		6,584		2,102		2,545		582,763		(17,271	)		(1,127	)		(915	)		(1,515	)		(1,284	)		(22,112	)		—			(22,112	)		560,651
Foreign trade credits to third countries		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Current account debtors		85,209		90,883		4,829		3,739		1,855		186,515		(2,684	)		(2,175	)		(758	)		(1,439	)		(874	)		(7,930	)		—			(7,930	)		178,585
Credit card debtors		21,353		71,726		1,056		1,033		8,537		103,705		(880	)		(2,207	)		(151	)		(608	)		(4,660	)		(8,506	)		—			(8,506	)		95,199
Factoring transactions		558,316		39,021		5,258		453		183		603,231		(10,001	)		(811	)		(497	)		(349	)		(66	)		(11,724	)		—			(11,724	)		591,507
Commercial lease transactions (1)		1,462,558		277,280		32,017		35,525		13,686		1,821,066		(3,103	)		(1,878	)		(102	)		(4,813	)		(3,334	)		(13,230	)		(527	)		(13,757	)		1,807,309
Student loans		—		52,521		—		—		4,114		56,635		—			(2,189	)		—			—			(2,905	)		(5,094	)		—			(5,094	)		51,541
Other loans and accounts receivable		7,417		10,895		195		9,204		1,296		29,007		(253	)		(10	)		(26	)		(7,494	)		(450	)		(8,233	)		—			(8,233	)		20,774
Subtotal		14,642,540		4,498,273		240,855		255,939		353,507		19,991,114		(148,685	)		(36,590	)		(9,317	)		(74,645	)		(87,837	)		(357,074	)		(9,131	)		(366,205	)		19,624,909
Residential mortgage loans
Letters of credit		—		2,339		—		—		151		2,490		—			(2	)		—			—			(8	)		(10	)		—			(10	)		2,480
Endorsable mortgage loans		—		10,983		—		—		329		11,312		—			(8	)		—			—			(31	)		(39	)		—			(39	)		11,273
Loans with mutual funds financed by mortgage bonds		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Other residential lending		—		11,871,797		—		—		250,593		12,122,390		—			(15,919	)		—			—			(17,005	)		(32,924	)		—			(32,924	)		12,089,466
Residential lease transactions (1)		—		—		—		—		—		—		—			—			—			—			—			—			—			—			—
Other loans and accounts receivable		—		158,981		—		—		7,981		166,962		—			(259	)		—			—			(774	)		(1,033	)		—			(1,033	)		165,929
Subtotal		—		12,044,100		—		—		259,054		12,303,154		—			(16,188	)		—			—			(17,818	)		(34,006	)		—			(34,006	)		12,269,148
Consumer loans
Consumer loans in installments		—		2,943,848		—		—		237,359		3,181,207		—			(150,741	)		—			—			(130,531	)		(281,272	)		—			(281,272	)		2,899,935
Current account debtors		—		268,525		—		—		2,449		270,974		—			(12,256	)		—			—			(1,179	)		(13,435	)		—			(13,435	)		257,539
Credit card debtors		—		1,817,403		—		—		34,974		1,852,377		—			(51,867	)		—			—			(20,751	)		(72,618	)		—			(72,618	)		1,779,759
Consumer lease transactions (1)		—		380		—		—		—		380		—			(5	)		—			—			—			(5	)		—			(5	)		375
Other loans and accounts receivable		—		15		—		—		1,483		1,498		—			(4	)		—			—			(1,423	)		(1,427	)		—			(1,427	)		71
Subtotal		—		5,030,171		—		—		276,265		5,306,436		—			(214,873	)		—			—			(153,884	)		(368,757	)		—			(368,757	)		4,937,679
Total		14,642,540		21,572,544		240,855		255,939		888,826		37,600,704		(148,685	)		(267,651	)		(9,317	)		(74,645	)		(259,539	)		(759,837	)		(9,131	)		(768,968	)		36,831,736

(1)

In this item, the Bank finances its clients the acquisition of movable and immovable property through financial lease agreements. As of December 31, 2023 Ch$921,451 million correspond to finance leases on immovable property and Ch$899,995 million correspond to finance leases on movable property.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(e)

Contingent loan: At the close of each reporting year, the contingent credit risk exposure is as follows:

	Outstanding exposure before provisions												Provisions established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Net exposure for credit risk of
	Evaluation				Evaluation		Evaluation						Evaluation						Evaluation			Evaluation									contingent
As of December 31, 2024	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			loans
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Warranty by endorsement and sureties		335,420		705		597		15		—		336,737		(4,855	)		(8	)		(83	)		(10	)		—			(4,956	)		331,781
Letters of credit for goods circulation operations		441,899		240		77		—		—		442,216		(1,037	)		—			(2	)		—			—			(1,039	)		441,177
Commitments to purchase local currency debt abroad		—		—		—		—		—		—		—			—			—			—			—			—			—
Contingent event transactions		3,002,848		64,429		33,791		23,155		403		3,124,626		(30,827	)		(669	)		(2,736	)		(13,595	)		(153	)		(47,980	)		3,076,646
Undrawn credit lines with immediate termination		1,516,269		9,594,526		5,762		1,333		7,410		11,125,300		(2,916	)		(4,666	)		(73	)		(795	)		(3,539	)		(11,989	)		11,113,311
Undrawn credit lines		—		—		—		—		—		—		—			—			—			—			—			—			—
Credits for Higher Education Law No. 20,027 (CAE)		—		—		—		—		—		—		—			—			—			—			—			—			—
Other irrevocable loan commitments		51,889		—		—		—		—		51,889		(1,573	)		—			—			—			—			(1,573	)		50,316
Other contingent loans		—		—		—		—		—		—		—			—			—			—			—			—			—
Total		5,348,325		9,659,900		40,227		24,503		7,813		15,080,768		(41,208	)		(5,343	)		(2,894	)		(14,400	)		(3,692	)		(67,537	)		15,013,231

	Outstanding exposure before provisions												Provisions established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Net exposure for credit risk of
	Evaluation				Evaluation		Evaluation						Evaluation						Evaluation			Evaluation									contingent
As of December 31, 2023	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			loans
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Warranty by endorsement and sureties		350,420		586		525		—		—		351,531		(4,511	)		(9	)		(73	)		—			—			(4,593	)		346,938
Letters of credit for goods circulation operations		350,122		482		—		—		—		350,604		(863	)		(2	)		—			—			—			(865	)		349,739
Commitments to purchase local currency debt abroad		—		—		—		—		—		—		—			—			—			—			—			—			—
Contingent event transactions		2,524,034		52,140		45,876		17,885		362		2,640,297		(29,397	)		(525	)		(3,887	)		(5,545	)		(110	)		(39,464	)		2,600,833
Undrawn credit lines with immediate termination		1,446,599		8,623,438		5,224		976		8,221		10,084,458		(2,736	)		(4,431	)		(57	)		(557	)		(4,009	)		(11,790	)		10,072,668
Undrawn credit lines		—		—		—		—		—		—		—			—			—			—			—			—			—
Credits for Higher Education Law No. 20,027 (CAE)		—		—		—		—		—		—		—			—			—			—			—			—			—
Other irrevocable loan commitments		120,545		—		—		—		—		120,545		(4,515	)		—			—			—			—			(4,515	)		116,030
Other contingent loans		—		—		—		—		—		—		—			—			—			—			—			—			—
Total		4,791,720		8,676,646		51,625		18,861		8,583		13,547,435		(42,022	)		(4,967	)		(4,017	)		(6,102	)		(4,119	)		(61,227	)		13,486,208

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions:

Summary of changes in due from banks provisions constituted by credit risk portfolio in the year:

	Changes in provisions constituted by portfolio in the year
	Individual Evaluation
	Normal Portfolio			Substandard Portfolio		Non-Complying Portfolio		Total
	MCh$			MCh$		MCh$		MCh$
Loans and advances to Banks
Balance as of January 1, 2024		751			—		—		751
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		75			—		—		75
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		—			—		—		—
Transfer from Normal individual to Non-Complying individual		—			—		—		—
Transfer from Substandard to Non-Complying individual		—			—		—		—
Transfer from Substandard to Normal individual		—			—		—		—
Transfer from Non-Complying individual to Substandard		—			—		—		—
Transfer from Non-Complying individual to Normal individual		—			—		—		—
New assets originated		1,606			—		—		1,606
New credits for conversion of contingent to loan		—			—		—		—
New assets purchased		—			—		—		—
Sales or transfers of credits		—			—		—		—
Payment of credit		(2,540	)		—		—		(2,540	)
Provisions for write-offs		—			—		—		—
Recovery of written-off loans		—			—		—		—
Foreign exchange differences		114			—		—		114
Other changes in allowances		882			—		—		882
Balance as of December 31, 2024		888			—		—		888

	Changes in provisions constituted by portfolio in the year
	Individual Evaluation
	Normal Portfolio			Substandard Portfolio		Non-Complying Portfolio		Total
	MCh$			MCh$		MCh$		MCh$
Loans and advances to Banks
Balance as of January 1, 2023		677			—		—		677
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		(194	)		—		—		(194	)
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		—			—		—		—
Transfer from Normal individual to Non-Complying individual		—			—		—		—
Transfer from Substandard to Non-Complying individual		—			—		—		—
Transfer from Substandard to Normal individual		—			—		—		—
Transfer from Non-Complying individual to Substandard		—			—		—		—
Transfer from Non-Complying individual to Normal individual		—			—		—		—
New assets originated		1,741			—		—		1,741
New credits for conversion of contingent to loan		—			—		—		—
New assets purchased		—			—		—		—
Sales or transfers of credits		—			—		—		—
Payment of credit		(1,486	)		—		—		(1,486	)
Provisions for write-offs		—			—		—		—
Recovery of written-off loans		—			—		—		—
Foreign exchange differences		13			—		—		13
Other changes in allowances		—			—		—		—
Balance as of December 31, 2023		751			—		—		751

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions, continued:

Summary of changes in commercial loan provisions constituted by credit risk portfolio in the year:

	Changes in provisions constituted by portfolio in the year
	Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties
	Evaluation						Evaluation			Evaluation									FOGAPE
	Individual			Grupal			Individual			Individual			Grupal			Sub total			Covid-19			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans
Balance as of January 1, 2024		148,685			36,590			9,317			74,645			87,837			357,074			9,131			366,205
Provisions established/ released:
Change in measurement without portfolio reclassification during the year		12,273			23,728			2,975			30,966			9,947			79,889			—			79,889
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		(2,926	)		—			4,955			—			—			2,029			—			2,029
Transfer from Normal individual to Non-Complying individual		(311	)		—			—			2,348			—			2,037			—			2,037
Transfer from Substandard to Non-Complying individual		—			—			(6,562	)		17,295			—			10,733			—			10,733
Transfer from Substandard to Normal individual		438			—			(676	)		—			—			(238	)		—			(238	)
Transfer from Non-Complying individual to Substandard		—			—			279			(2,159	)		—			(1,880	)		—			(1,880	)
Transfer from Non-Complying individual to Normal individual		5			—			—			(34	)		—			(29	)		—			(29	)
Transfer from Normal group to Non-Complying group		—			(16,109	)		—			—			43,775			27,666			—			27,666
Transfer from Non-Complying group to Normal group		—			646			—			—			(9,551	)		(8,905	)		—			(8,905	)
Transfer from Individual (normal, substandard, non-complying) to Group (normal, non-complying)		—			—			—			—			—			—			—			—
Transfer from Group (normal, non-complying) to Individual (normal, substandard, non-complying)		677			(958	)		343			223			(146	)		139			—			139
New assets originated		225,544			24,756			5,359			19,371			16,253			291,283			—			291,283
New credits for conversion of contingent to loan		13,527			9,197			1,178			2,067			1,090			27,059			—			27,059
New assets purchased		—			—			—			—			—			—			—			—
Sales or transfers of credits		(46	)		(163	)		—			(240	)		—			(449	)		—			(449	)
Payment of credit		(247,038	)		(40,754	)		(12,902	)		(34,187	)		(30,359	)		(365,240	)		—			(365,240	)
Provisions for write-offs		—			—			—			(25,666	)		(28,663	)		(54,329	)		—			(54,329	)
Recovery of written-off loans		—			87			—			—			—			87			—			87
Changes to models and assumptions		—			—			—			—			—			—			—			—
Foreign exchange differences		7,507			180			182			2,086			253			10,208			—			10,208
Other changes in allowances		—			—			—			—			—			—			(5,970	)		(5,970	)
Balance as of December 31, 2024		158,335			37,200			4,448			86,715			90,436			377,134			3,161			380,295

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions, continued:

	Changes in provisions constituted by portfolio in the year
	Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties
	Evaluation						Evaluation			Evaluation									FOGAPE
	Individual			Group			Individual			Individual			Group			Sub total			Covid-19			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans
Balance as of January 1, 2023		152,467			42,021			20,797			75,935			90,237			381,457			32,743			414,200
Provisions established/ released:
Change in measurement without portfolio reclassification during the year		(32,144	)		(540	)		(1,511	)		19,717			31,937			17,459			—			17,459
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		(2,845	)		—			4,966			—			—			2,121			—			2,121
Transfer from Normal individual to Non-Complying individual		(80	)		—			—			1,191			—			1,111			—			1,111
Transfer from Substandard to Non-Complying individual		—			—			(4,560	)		16,310			—			11,750			—			11,750
Transfer from Substandard to Normal individual		903			—			(12,685	)		—			—			(11,782	)		—			(11,782	)
Transfer from Non-Complying individual to Substandard		—			—			166			(557	)		—			(391	)		—			(391	)
Transfer from Non-Complying individual to Normal individual		—			—			—			(17	)		—			(17	)		—			(17	)
Transfer from Normal group to Non-Complying group		—			(16,099	)		—			—			41,808			25,709			—			25,709
Transfer from Non-Complying group to Normal group		—			676			—			—			(10,938	)		(10,262	)		—			(10,262	)
Transfer from Individual (normal, substandard, non-complying) to Group (normal, non-complying)		—			—			—			—			—			—			—			—
Transfer from Group (normal, non-complying) to Individual (normal, substandard, non-complying)		847			(839	)		84			66			(143	)		15			—			15
New assets originated		200,453			21,387			6,361			8,712			14,659			251,572			—			251,572
New credits for conversion of contingent to loan		13,510			8,387			967			1,292			839			24,995			—			24,995
New assets purchased		—			—			—			—			—			—			—			—
Sales or transfers of credits		—			—			—			(342	)		—			(342	)		—			(342	)
Payment of credit		(186,161	)		(18,537	)		(5,352	)		(29,647	)		(45,435	)		(285,132	)		—			(285,132	)
Provisions for write-offs		—			—			—			(18,451	)		(35,184	)		(53,635	)		—			(53,635	)
Recovery of written-off loans		—			89			—			—			—			89			—			89
Changes to models and assumptions		—			—			—			—			—			—			—			—
Foreign exchange differences		1,735			45			84			436			57			2,357			—			2,357
Other changes in allowances		—			—			—			—			—			—			(23,612	)		(23,612	)
Balance as of December 31, 2023		148,685			36,590			9,317			74,645			87,837			357,074			9,131			366,205

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions, continued:

Summary of changes in residential mortgage loan provisions constituted by credit risk portfolio in the year:

	Changes in provisions constituted by portfolio in the year
	Group Evaluation
	Normal Portfolio			Non-Complying Portfolio			Total
	MCh$			MCh$			MCh$
Residential mortgage loans
Balance as of January 1, 2024		16,188			17,818			34,006
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		3,314			1,846			5,160
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal group to Non-Complying group		(4,346	)		9,780			5,434
Transfer from Non-Complying group to Normal group		442			(1,819	)		(1,377	)
New assets originated		1,505			192			1,697
New assets purchased		—			—			—
Sales or transfers of credits		—			—			—
Payment of credit		(1,244	)		(4,632	)		(5,876	)
Provisions for write-offs		—			(644	)		(644	)
Recovery of written-off loans		—			—			—
Changes to models and assumptions		—			—			—
Foreign exchange differences		—			—			—
Other changes in allowances		—			—			—
Balance as of December 31, 2024		15,859			22,541			38,400

	Changes in provisions constituted by portfolio in the year
	Group Evaluation
	Normal Portfolio			Non-Complying Portfolio			Total
	MCh$			MCh$			MCh$
Residential mortgage loans
Balance as of January 1, 2023		15,154			14,149			29,303
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		4,191			884			5,075
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal group to Non-Complying group		(4,050	)		8,494			4,444
Transfer from Non-Complying group to Normal group		315			(1,901	)		(1,586	)
New assets originated		1,947			90			2,037
New assets purchased		—			—			—
Sales or transfers of credits		—			—			—
Payment of credit		(1,369	)		(2,889	)		(4,258	)
Provisions for write-offs		—			(1,009	)		(1,009	)
Recovery of written-off loans		—			—			—
Changes to models and assumptions		—			—			—
Foreign exchange differences		—			—			—
Other changes in allowances		—			—			—
Balance as of December 31, 2023		16,188			17,818			34,006

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions, continued:

Summary of changes in consumer loan provisions constituted by credit risk portfolio in the year:

	Changes in provisions constituted by portfolio in the year
	Group Evaluation
	Normal Portfolio			Non-Complying Portfolio			Total
	MCh$			MCh$			MCh$
Consumer loans
Balance as of January 1, 2024		214,873			153,884			368,757
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		169,484			78,923			248,407
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal group to Non-Complying group		(129,215	)		167,500			38,285
Transfer from Non-Complying group to Normal group		15,115			(38,102	)		(22,987	)
New assets originated		92,911			78,148			171,059
New credits for conversion of contingent to loan		79,922			2,539			82,461
New assets purchased		—			—			—
Sales or transfers of credits		—			—			—
Payment of credit		(245,469	)		(65,987	)		(311,456	)
Provisions for write-offs		—			(209,577	)		(209,577	)
Recovery of written-off loans		2,310			—			2,310
Changes to models and assumptions		—			—			—
Foreign exchange differences		126			4			130
Other changes in allowances		—			—			—
Balance as of December 31, 2024		200,057			167,332			367,389

	Changes in provisions constituted by portfolio in the year
	Group Evaluation
	Normal Portfolio			Non-Complying Portfolio			Total
	MCh$			MCh$			MCh$
Consumer loans
Balance as of January 1, 2023		200,043			134,846			334,889
Allowances established/ released:
Change in measurement without portfolio reclassification during the year		202,080			63,508			265,588
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal group to Non-Complying group		(135,399	)		177,331			41,932
Transfer from Non-Complying group to Normal group		9,721			(31,237	)		(21,516	)
New assets originated		91,248			63,697			154,945
New credits for conversion of contingent to loan		81,730			3,943			85,673
New assets purchased		—			—			—
Sales or transfers of credits		—			—			—
Payment of credit		(236,906	)		(57,377	)		(294,283	)
Provisions for write-offs		—			(200,849	)		(200,849	)
Recovery of written-off loans		2,345			—			2,345
Changes to models and assumptions		—			—			—
Foreign exchange differences		11			22			33
Other changes in allowances		—			—			—
Balance as of December 31, 2023		214,873			153,884			368,757

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(f)

Provisions, continued:

Summary of changes in contingent credit risk provisions constituted by credit risk portfolio in the year:

	Changes in provisions constituted by portfolio in the year
	Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio
	Evaluation						Evaluation			Evaluation
	Individual			Group			Individual			Individual			Group			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Contingent loan exposure
Balance as of January 1, 2024		42,022			4,967			4,017			6,102			4,119			61,227
Provisions established/ released:
Change in measurement without portfolio reclassification during the year		9,096			4,119			178			3,755			2,566			19,714
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		(173	)		—			279			—			—			106
Transfer from Normal individual to Non-Complying individual		(6	)		—			—			65			—			59
Transfer from Substandard to Non-Complying individual		—			—			(1,086	)		9,064			—			7,978
Transfer from Substandard to Normal individual		65			—			(107	)		—			—			(42	)
Transfer from Non-Complying individual to Substandard		—			—			5			(74	)		—			(69	)
Transfer from Non-Complying individual to Normal individual		—			—			—			(9	)		—			(9	)
Transfer from Normal group to Non-Complying group		—			(125	)		—			—			3,303			3,178
Transfer from Non-Complying group to Normal group		—			3			—			—			(2,647	)		(2,644	)
Transfer from Individual (normal, substandard, non-complying) to Group (normal, non-complying )		—			—			—			—			—			—
Transfer from Group (normal, non-complying) to Individual (normal, substandard, non-complying)		64			(48	)		5			4			(17	)		8
New contingent loan granted		35,457			1,687			13,543			559			534			51,780
Contingent credits for conversion		(1,382	)		(3,100	)		(135	)		(1,220	)		(1,436	)		(7,273	)
Changes to models and assumptions		—			—			—			—			—			—
Foreign exchange differences		971			226			13			27			190			1,427
Other changes in provisions		(44,906	)		(2,386	)		(13,818	)		(3,873	)		(2,920	)		(67,903	)
Balance as of December 31, 2024		41,208			5,343			2,894			14,400			3,692			67,537

	Changes in provisions constituted by portfolio in the year
	Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio
	Evaluation						Evaluation			Evaluation
	Individual			Group			Individual			Individual			Group			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Contingent loan exposure
Balance as of January 1, 2023		31,717			4,658			10,925			4,018			6,059			57,377
Provisions established/ released:
Change in measurement without portfolio reclassification during the year		(933	)		(287	)		(37	)		(26	)		(617	)		(1,900	)
Change in measurement without portfolio reclassification from the beginning to the end of the year (portfolio from (-) until (+)):
Transfer from Normal individual to Substandard		(371	)		—			783			—			—			412
Transfer from Normal individual to Non-Complying individual		(7	)		—			—			313			—			306
Transfer from Substandard to Non-Complying individual		—			—			(391	)		1,842			—			1,451
Transfer from Substandard to Normal individual		1,131			—			(3,493	)		—			—			(2,362	)
Transfer from Non-Complying individual to Substandard		—			—			2			(65	)		—			(63	)
Transfer from Non-Complying individual to Normal individual		—			—			—			(45	)		—			(45	)
Transfer from Normal group to Non-Complying group		—			(111	)		—			—			2,164			2,053
Transfer from Non-Complying group to Normal group		—			4			—			—			(2,811	)		(2,807	)
Transfer from Individual (normal, substandard, non-complying) to Group (normal, non-complying )		—			—			—			—			—			—
Transfer from Group (normal, non-complying) to Individual (normal, substandard, non-complying)		52			(43	)		1			5			(11	)		4
New contingent loan granted		30,168			1,567			11,696			1,463			587			45,481
Contingent credits for conversion		(235	)		(349	)		(60	)		(222	)		(316	)		(1,182	)
Changes to models and assumptions		—			—			—			—			—			—
Foreign exchange differences		223			1			(172	)		—			73			125
Other changes in provisions		(19,723	)		(473	)		(15,237	)		(1,181	)		(1,009	)		(37,623	)
Balance as of December 31, 2023		42,022			4,967			4,017			6,102			4,119			61,227

In addition to these provisions for credit risk, country risk provisions are maintained to cover foreign operations and additional provisions agreed by the Board of Directors, which are presented in liabilities under the item Special provisions for credit risk (See Note No. 26).

Other disclosures:

As of December 31, 2023, under the Commercial Loans item, operations are maintained that guarantee obligations maintained with the Central Bank of Chile as part of the Loan Increase Conditional Credit Facility (FCIC by its Spanish initials) program for an approximate amount of Ch$2,573,423 million. There are no guarantees delivered as of December 31, 2024 for this concept given that the program came to an end on July 1, 2024.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

Industry sector:

At the closing of each reporting year, the composition of economic activity for loans, contingent loans exposure and provisions constituted are as follows:

	Credit and Contingent loans Exposure												Allowances Established
	Domestic loans				Foreign loans				Total		Total		Domestic loans						Foreign loans						Total			Total
	2024		2023		2024		2023		2024		2023		2024			2023			2024			2023			2024			2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and advances to Banks		300,042		2,100,933		367,661		418,998		667,703		2,519,931		(154	)		—			(734	)		(751	)		(888	)		(751	)

Commercial loans
Agriculture and livestock		750,478		787,718		—		—		750,478		787,718		(13,556	)		(12,486	)		—			—			(13,556	)		(12,486	)
Fruit		729,645		645,470		—		—		729,645		645,470		(11,755	)		(10,933	)		—			—			(11,755	)		(10,933	)
Forestry		89,520		101,243		—		—		89,520		101,243		(4,100	)		(2,788	)		—			—			(4,100	)		(2,788	)
Fishing		29,364		26,296		—		—		29,364		26,296		(2,890	)		(2,543	)		—			—			(2,890	)		(2,543	)
Mining		864,692		417,025		—		—		864,692		417,025		(4,781	)		(4,227	)		—			—			(4,781	)		(4,227	)
Oil and natural gas		211		416		—		—		211		416		(8	)		(10	)		—			—			(8	)		(10	)
Product manufacturing industries;
Foods, beverages and tobacco		656,889		512,732		—		—		656,889		512,732		(11,773	)		(13,658	)		—			—			(11,773	)		(13,658	)
Textiles, leather goods and footwear		28,712		33,011		—		—		28,712		33,011		(910	)		(865	)		—			—			(910	)		(865	)
Woods and furnitures		89,196		78,287		—		—		89,196		78,287		(2,479	)		(2,065	)		—			—			(2,479	)		(2,065	)
Cellulose, Paper and printing		15,838		16,715		—		—		15,838		16,715		(442	)		(721	)		—			—			(442	)		(721	)
Chemicals and petroleum products		321,593		298,712		—		—		321,593		298,712		(7,422	)		(6,516	)		—			—			(7,422	)		(6,516	)
Metal, non-metal, machine or others		481,778		551,244		—		—		481,778		551,244		(10,848	)		(12,082	)		—			—			(10,848	)		(12,082	)
Electricity, gas and water		241,941		438,098		104,988		1,326		346,929		439,424		(3,078	)		(3,908	)		(149	)		(57	)		(3,227	)		(3,965	)
Residential construction		193,923		262,452		—		—		193,923		262,452		(5,608	)		(9,369	)					—			(5,608	)		(9,369	)
Non-residential construction (office, civil engineering)		481,437		407,175		—		—		481,437		407,175		(10,462	)		(11,125	)		—			—			(10,462	)		(11,125	)
Wholesale		1,578,109		1,794,264		—		—		1,578,109		1,794,264		(47,598	)		(49,374	)		—			—			(47,598	)		(49,374	)
Retail, restaurants and hotels		1,038,501		1,011,484		—		—		1,038,501		1,011,484		(41,042	)		(38,314	)		—			—			(41,042	)		(38,314	)
Transport and storage		1,033,066		1,101,603		—		—		1,033,066		1,101,603		(28,039	)		(20,777	)		—			—			(28,039	)		(20,777	)
Communications		213,992		102,052		—		—		213,992		102,052		(3,015	)		(2,395	)		—			—			(3,015	)		(2,395	)
Financial services		2,994,709		3,219,723		—		—		2,994,709		3,219,723		(27,470	)		(28,040	)		—			—			(27,470	)		(28,040	)
Business services		1,965,847		1,969,605		—		—		1,965,847		1,969,605		(53,499	)		(51,697	)		—			—			(53,499	)		(51,697	)
Real estate services		3,345,600		3,359,135		14,882		19,931		3,360,482		3,379,066		(23,908	)		(20,378	)		(819	)		(1,066	)		(24,727	)		(21,444	)
Student loans		52,280		56,636		—		—		52,280		56,636		(4,564	)		(5,093	)		—			—			(4,564	)		(5,093	)
Government administration, defence and police force		16,882		21,434		—		—		16,882		21,434		(207	)		(288	)		—			—			(207	)		(288	)
Social services and other community services		898,419		899,492		—		—		898,419		899,492		(16,821	)		(14,483	)		—			—			(16,821	)		(14,483	)
Personal services		1,872,736		1,857,835		—		—		1,872,736		1,857,835		(43,052	)		(40,947	)		—			—			(43,052	)		(40,947	)
Subtotal		19,985,358		19,969,857		119,870		21,257		20,105,228		19,991,114		(379,327	)		(365,082	)		(968	)		(1,123	)		(380,295	)		(366,205	)

Residential mortgage loans		13,218,586		12,303,154		—		—		13,218,586		12,303,154		(38,400	)		(34,006	)		—			—			(38,400	)		(34,006	)

Consumer loans		5,551,306		5,306,436		—		—		5,551,306		5,306,436		(367,389	)		(368,757	)		—			—			(367,389	)		(368,757	)

Contingent loan exposure		15,080,768		13,547,435		—		—		15,080,768		13,547,435		(67,537	)		(61,227	)		—			—			(67,537	)		(61,227	)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(h)

Residential mortgage loans and its provisions established by insolvent tranche of the loan on the value of the mortgage guarantee (PVG) and days of default respectively:

As of December 31, 2024

	Residential mortgage loans (MCh$)												Allowances established of Residential mortgage loans (MCh$)
Loan Tranche /	Days in default at the end of the year												Days in default at the end of the year
Guarantee Value (%)	0		1 to 29		30 to 59		60 to 89		> = 90		Total		0			1 to 29			30 to 59			60 to 89			> = 90			Total
PVG <=40%		1,936,055		32,620		15,536		6,165		17,148		2,007,524		(1,404	)		(480	)		(427	)		(226	)		(964	)		(3,501	)
40% < PVG <= 80%		9,566,995		232,095		106,604		46,471		147,162		10,099,327		(10,565	)		(4,022	)		(3,335	)		(1,893	)		(8,749	)		(28,564	)
80% < PVG <= 90%		623,624		10,068		3,846		1,801		7,690		647,029		(1,650	)		(352	)		(309	)		(184	)		(1,279	)		(3,774	)
PVG > 90%		457,769		1,442		442		591		4,462		464,706		(1,432	)		(62	)		(37	)		(51	)		(979	)		(2,561	)
Total		12,584,443		276,225		126,428		55,028		176,462		13,218,586		(15,051	)		(4,916	)		(4,108	)		(2,354	)		(11,971	)		(38,400	)

As of December 31, 2023

	Residential mortgage loans (MCh$)												Allowances established of Residential mortgage loans (MCh$)
Loan Tranche /	Days in default at the end of the year												Days in default at the end of the year
Guarantee Value (%)	0		1 to 29		30 to 59		60 to 89		> = 90		Total		0			1 to 29			30 to 59			60 to 89			> = 90			Total
PVG <=40%		1,681,930		24,754		10,259		5,119		12,398		1,734,460		(1,265	)		(341	)		(289	)		(179	)		(688	)		(2,762	)
40% < PVG <= 80%		9,095,085		198,906		85,417		38,587		106,142		9,524,137		(10,392	)		(3,541	)		(2,619	)		(1,491	)		(6,235	)		(24,278	)
80% < PVG <= 90%		504,787		12,757		5,103		3,610		8,395		534,652		(1,662	)		(477	)		(430	)		(379	)		(1,423	)		(4,371	)
PVG > 90%		501,652		2,272		1,231		454		4,296		509,905		(1,490	)		(82	)		(67	)		(20	)		(936	)		(2,595	)
Total		11,783,454		238,689		102,010		47,770		131,231		12,303,154		(14,809	)		(4,441	)		(3,405	)		(2,069	)		(9,282	)		(34,006	)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(i)

Loans and advances to Banks and Commercial loans and their allowances established by classification category:

Below is the concentration of loans and advances to banks and commercial loans and their provisions constituted by classification category:

	Individual																																																		Group												Provisions of deductible warranties
As of	Normal Portfolio																					Substandard Portfolio															Non-Complying Portfolio																								Portfolio			Portfolio									Fogape
December 31, 2024	A1			A2			A3			A4			A5			A6			Subtotal			B1			B2			B3			B4			Subtotal			C1			C2			C3			C4			C5			C6			Subtotal			Total			Normal			Non-Complying			Total			Total			Covid 19
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and advances to Banks
Interbank loans for liquidity		200,028			100,014			—			—			—			—			300,042			—			—			—			—			—			—			—			—			—			—			—			—			300,042			—			—			—			300,042			—
Interbank commercial loans		—			—			269,191			—			—			—			269,191			—			—			—			—			—			—			—			—			—			—			—			—			269,191			—			—			—			269,191			—
Current accounts overdrafts		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Chilean exports foreign trade loans		14,614			32,260			51,596			—			—			—			98,470			—			—			—			—			—			—			—			—			—			—			—			—			98,470			—			—			—			98,470			—
Chilean imports foreign trade loans		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Foreign trade loans between third countries		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Current account deposits in foreign banks for derivative operations		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Other non-transferable deposits in banks		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Other debts with banks		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Subtotal		214,642			132,274			320,787			—			—			—			667,703			—			—			—			—			—			—			—			—			—			—			—			—			667,703			—			—			—			667,703			—
Allowances established		77			109			702			—			—			—			888			—			—			—			—			—			—			—			—			—			—			—			—			888			—			—			—			888			—
% Allowances established		0.04	%		0.08	%		0.22	%		—			—			—			0.13	%		—			—			—			—			—			—			—			—			—			—			—			—			0.13	%		—			—			—			0.13	%		—

Commercial loans
Commercial loans		—			978,748			1,683,111			2,093,769			3,504,563			2,252,173			10,512,364			98,731			51,153			35,812			9,032			194,728			86,932			37,379			12,894			34,843			11,763			35,656			219,467			10,926,559			3,835,557			350,892			4,186,449			15,113,008			2,764
Chilean exports foreign trade loans		—			563,237			298,742			198,222			209,936			158,691			1,428,828			4,414			2,594			—			—			7,008			8,494			—			—			334			—			1,645			10,473			1,446,309			3,006			395			3,401			1,449,710			—
Accrediting foreign trade loans negotiated in terms of Chilean imports		—			—			—			—			—			162			162			—			—			—			—			—			—			—			—			—			—			—			—			162			—			—			—			162			—
Chilean imports foreign trade loans		—			10,607			47,176			98,073			178,454			169,514			503,824			5,419			275			—			—			5,694			384			—			—			141			1,640			1,038			3,203			512,721			46,538			3,038			49,576			562,297			—
Foreign trade credits to third countries		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Current account debtors		—			12			24,388			31,693			19,000			22,329			97,422			3,033			1,124			923			189			5,269			513			86			1,061			593			151			1,647			4,051			106,742			87,836			2,241			90,077			196,819			—
Credit card debtors		—			294			1,291			3,936			10,178			9,801			25,500			664			332			112			12			1,120			235			70			49			74			196			817			1,441			28,061			84,721			10,968			95,689			123,750			—
Factoring transactions		2,081			159,861			108,439			29,667			163,282			92,436			555,766			4,041			73			—			—			4,114			—			—			—			—			—			27			27			559,907			36,830			175			37,005			596,912			—
Commercial lease transactions		—			49,621			77,816			334,046			636,573			516,572			1,614,628			16,016			10,619			1,184			424			28,243			4,621			4,616			14,387			11,241			2,419			680			37,964			1,680,835			296,248			13,941			310,189			1,991,024			397
Student loans		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			48,804			3,476			52,280			52,280			—
Other loans and accounts receivable		—			479			1,649			1,352			2,651			2,633			8,764			66			51			4			—			121			237			12			181			347			786			6,578			8,141			17,026			965			1,275			2,240			19,266			—
Subtotal		2,081			1,762,859			2,242,612			2,790,758			4,724,637			3,224,311			14,747,258			132,384			66,221			38,035			9,657			246,297			101,416			42,163			28,572			47,573			16,955			48,088			284,767			15,278,322			4,440,505			386,401			4,826,906			20,105,228			—
Allowances established		1			1,188			3,494			24,871			51,771			77,010			158,335			2,865			639			428			516			4,448			2,028			4,216			7,143			19,029			11,020			43,279			86,715			249,498			37,200			90,436			127,636			377,134			3,161
% Allowances established		0.05	%		0.07	%		0.16	%		0.89	%		1.10	%		2.39	%		1.07	%		2.16	%		0.96	%		1.13	%		5.34	%		1.81	%		2.00	%		10.00	%		25.00	%		40.00	%		65.00	%		90.00	%		30.45	%		1.63	%		0.84	%		23.40	%		2.64	%		1.88	%		—

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(i)

Loans and advances to Banks and Commercial loans and their allowances established by classification category, continued:

	Individual																																																		Group												Provisions of deductible warranties
	Normal Portfolio																					Substandard Portfolio															Non-Complying Portfolio																								Portfolio			Portfolio									Fogape
As of December 31, 2023	A1			A2			A3			A4			A5			A6			Subtotal			B1			B2			B3			B4			Subtotal			C1			C2			C3			C4			C5			C6			Subtotal			Total			Normal			Non-Complying			Total			Total			Covid 19
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and advances to Banks
Interbank loans for liquidity		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Interbank commercial loans		—			—			205,362			—			—			—			205,362			—			—			—			—			—			—			—			—			—			—			—			—			205,362			—			—			—			205,362			—
Current accounts overdrafts		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Chilean exports foreign trade loans		18,158			179,044			11,553			4,372			—			509			213,636			—			—			—			—			—			—			—			—			—			—			—			—			213,636			—			—			—			213,636			—
Chilean imports foreign trade loans		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Foreign trade loans between third countries		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Current account deposits in foreign banks for derivative operations		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Other non-transferable deposits in banks		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Other debts with banks		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Subtotal		18,158			179,044			216,915			4,372			—			509			418,998			—			—			—			—			—			—			—			—			—			—			—			—			418,998			—			—			—			418,998			—
Allowances established		7			147			474			77			—			46			751			—			—			—			—			—			—			—			—			—			—			—			—			751			—			—			—			751			—
% Allowances established		0.04	%		0.08	%		0.22	%		1.76	%		—			9.04	%		0.18	%		—			—			—			—			—			—			—			—			—			—			—			—			0.18	%		—			—			—			0.18	%		—

Commercial loans
Commercial loans		—			1,216,977			1,912,516			2,298,992			3,333,215			2,093,899			10,855,599			122,172			33,525			23,759			5,788			185,244			64,783			47,719			20,668			21,351			15,543			27,297			197,361			11,238,204			3,910,753			321,133			4,231,886			15,470,090			8,604
Chilean exports foreign trade loans		—			147,251			361,058			200,803			250,515			162,400			1,122,027			2,429			2,709			534			—			5,672			204			—			276			2,898			324			2,820			6,522			1,134,221			3,629			158			3,787			1,138,008			—
Accrediting foreign trade loans negotiated in terms of Chilean imports		—			—			—			—			—			94			94			—			—			—			—			—			—			—			—			—			—			—			—			94			—			—			—			94			—
Chilean imports foreign trade loans		—			9,724			75,779			170,551			126,062			147,851			529,967			6,437			147			—			—			6,584			346			—			—			15			260			1,481			2,102			538,653			41,565			2,545			44,110			582,763
Foreign trade credits to third countries		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Current account debtors		—			5,022			8,922			30,953			18,244			22,068			85,209			1,744			2,804			188			93			4,829			329			1,780			71			129			409			1,021			3,739			93,777			90,883			1,855			92,738			186,515			—
Credit card debtors		—			390			1,667			3,183			8,116			7,997			21,353			657			355			20			24			1,056			135			72			61			104			213			448			1,033			23,442			71,726			8,537			80,263			103,705			—
Factoring transactions		2,824			82,284			140,881			88,002			146,089			98,236			558,316			5,258			—			—			—			5,258			59			9			—			—			—			385			453			564,027			39,021			183			39,204			603,231			—
Commercial lease transactions		—			57,799			50,596			348,083			512,701			493,379			1,462,558			21,050			6,150			4,462			355			32,017			3,227			27,316			1,221			3,140			412			209			35,525			1,530,100			277,280			13,686			290,966			1,821,066			527
Student loans		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			52,521			4,114			56,635			56,635			—
Other loans and accounts receivable		—			375			1,752			1,085			2,068			2,137			7,417			137			55			3			—			195			217			78			93			336			1,233			7,247			9,204			16,816			10,895			1,296			12,191			29,007			—
Subtotal		2,824			1,519,822			2,553,171			3,141,652			4,397,010			3,028,061			14,642,540			159,884			45,745			28,966			6,260			240,855			69,300			76,974			22,390			27,973			18,394			40,908			255,939			15,139,334			4,498,273			353,507			4,851,780			19,991,114			—
Allowances established		1			941			4,094			29,970			42,675			71,004			148,685			3,436			1,515			3,883			483			9,317			1,386			7,697			5,597			11,190			11,957			36,818			74,645			232,647			36,590			87,837			124,427			357,074			9,131
% Allowances established		0.04	%		0.06	%		0.16	%		0.95	%		0.97	%		2.34	%		1.02	%		2.15	%		3.31	%		13.41	%		7.72	%		3.87	%		2.00	%		10.00	%		25.00	%		40.00	%		65.00	%		90.00	%		29.17	%		1.54	%		0.81	%		24.85	%		2.56	%		1.79	%		—

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(j)

Loans and their provisions for loan losses by tranches of days past-due:

The concentration of credit risk by days past due is as follows;

	Financial assets before allowances												Allowances established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties						Net
	Evaluation				Evaluation		Evaluation				Sub		Evaluation						Evaluation			Evaluation						Sub			FOGAPE						Financial
As of December 31, 2024	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			Covid-19			Total			Assets
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and advances to Banks
0 days		596,974		—		—		—		—		596,974		(800	)		—			—			—			—			(800	)		—			(800	)
1 to 29 days		70,729		—		—		—		—		70,729		(88	)		—			—			—			—			(88	)		—			(88	)
30 to 59 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
60 to 89 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
> = 90 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
Subtotal		667,703		—		—		—		—		667,703		(888	)		—			—			—			—			(888	)		—			(888	)		666,815

Commercial loans
0 days		14,515,547		4,237,304		212,286		145,211		103,514		19,213,862		(155,358	)		(28,184	)		(3,855	)		(35,615	)		(18,814	)		(241,826	)		(3,064	)		(244,890	)
1 to 29 days		218,097		147,190		22,083		18,360		36,055		441,785		(2,811	)		(4,691	)		(382	)		(3,257	)		(7,207	)		(18,348	)		(56	)		(18,404	)
30 to 59 days		13,549		43,058		9,856		22,310		34,271		123,044		(165	)		(2,900	)		(156	)		(11,012	)		(6,468	)		(20,701	)		—			(20,701	)
60 to 89 days		65		12,953		2,072		8,749		20,850		44,689		(1	)		(1,425	)		(55	)		(1,461	)		(4,362	)		(7,304	)		(2	)		(7,306	)
> = 90 days		—		—		—		90,137		191,711		281,848		—			—			—			(35,370	)		(53,585	)		(88,955	)		(39	)		(88,994	)
Subtotal		14,747,258		4,440,505		246,297		284,767		386,401		20,105,228		(158,335	)		(37,200	)		(4,448	)		(86,715	)		(90,436	)		(377,134	)		(3,161	)		(380,295	)		19,724,933

Residential mortgage loans
0 days		—		12,518,932		—		—		65,511		12,584,443		—			(10,523	)		—			—			(4,528	)		(15,051	)		—			(15,051	)
1 to 29 days		—		240,310		—		—		35,915		276,225		—			(2,661	)		—			—			(2,255	)		(4,916	)		—			(4,916	)
30 to 59 days		—		90,398		—		—		36,030		126,428		—			(1,843	)		—			—			(2,265	)		(4,108	)		—			(4,108	)
60 to 89 days		—		30,983		—		—		24,045		55,028		—			(832	)		—			—			(1,522	)		(2,354	)		—			(2,354	)
> = 90 days		—		—		—		—		176,462		176,462		—			—			—			—			(11,971	)		(11,971	)		—			(11,971	)
Subtotal		—		12,880,623		—		—		337,963		13,218,586		—			(15,859	)		—			—			(22,541	)		(38,400	)		—			(38,400	)		13,180,186

Consumer loans
0 days		—		5,010,755		—		—		92,973		5,103,728		—			(148,953	)		—			—			(47,823	)		(196,776	)		—			(196,776	)
1 to 29 days		—		176,897		—		—		34,243		211,140		—			(28,928	)		—			—			(19,033	)		(47,961	)		—			(47,961	)
30 to 59 days		—		53,655		—		—		36,266		89,921		—			(15,508	)		—			—			(23,119	)		(38,627	)		—			(38,627	)
60 a 89 days		—		17,656		—		—		25,993		43,649		—			(6,668	)		—			—			(15,490	)		(22,158	)		—			(22,158	)
> = 90 days		—		—		—		—		102,868		102,868		—			—			—			—			(61,867	)		(61,867	)		—			(61,867	)
Subtotal		—		5,258,963		—		—		292,343		5,551,306		—			(200,057	)		—			—			(167,332	)		(367,389	)		—			(367,389	)		5,183,917

Total Loans		15,414,961		22,580,091		246,297		284,767		1,016,707		39,542,823		(159,223	)		(253,116	)		(4,448	)		(86,715	)		(280,309	)		(783,811	)		(3,161	)		(786,972	)		38,755,851

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(j)

Loans and their provisions for loan losses by number of days past-due, continued:

	Financial assets before allowances												Allowances established
	Normal Portfolio				Substandard Portfolio		Non-Complying Portfolio						Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio									Deductible Warranties						Net
	Evaluation				Evaluation		Evaluation				Sub		Evaluation						Evaluation			Evaluation						Sub			FOGAPE						Financial
	Individual		Group		Individual		Individual		Group		Total		Individual			Group			Individual			Individual			Group			Total			Covid-19			Total			Assets
As of December 31, 2023	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Loans and advances to Banks
0 days		331,230		—		—		—		—		331,230		(687	)		—			—			—			—			(687	)		—			(687	)
1 to 29 days		87,768		—		—		—		—		87,768		(64	)		—			—			—			—			(64	)		—			(64	)
30 to 59 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
60 to 89 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
> = 90 days		—		—		—		—		—		—		—			—			—			—			—			—			—			—
Subtotal		418,998		—		—		—		—		418,998		(751	)		—			—			—			—			(751	)		—			(751	)		418,247

Commercial loans
0 days		14,476,238		4,327,340		197,115		90,648		94,559		19,185,900		(146,690	)		(28,206	)		(8,043	)		(20,577	)		(19,228	)		(222,744	)		(8,700	)		(231,444	)
1 to 29 days		153,429		117,335		26,506		9,799		28,281		335,350		(1,805	)		(3,913	)		(894	)		(1,502	)		(5,176	)		(13,290	)		(175	)		(13,465	)
30 to 59 days		12,857		42,252		13,106		18,285		28,894		115,394		(189	)		(3,012	)		(339	)		(3,236	)		(5,519	)		(12,295	)		(89	)		(12,384	)
60 to 89 days		16		11,346		4,128		8,628		21,846		45,964		(1	)		(1,459	)		(41	)		(978	)		(4,313	)		(6,792	)		(14	)		(6,806	)
> = 90 days		—		—		—		128,579		179,927		308,506		—			—			—			(48,352	)		(53,601	)		(101,953	)		(153	)		(102,106	)
Subtotal		14,642,540		4,498,273		240,855		255,939		353,507		19,991,114		(148,685	)		(36,590	)		(9,317	)		(74,645	)		(87,837	)		(357,074	)		(9,131	)		(366,205	)		19,624,909

Residential mortgage loans
0 days		—		11,732,316		—		—		51,138		11,783,454		—			(11,327	)		—			—			(3,482	)		(14,809	)		—			(14,809	)
1 to 29 days		—		208,412		—		—		30,277		238,689		—			(2,526	)		—			—			(1,915	)		(4,441	)		—			(4,441	)
30 to 59 days		—		74,184		—		—		27,826		102,010		—			(1,504	)		—			—			(1,901	)		(3,405	)		—			(3,405	)
60 to 89 days		—		29,188		—		—		18,582		47,770		—			(831	)		—			—			(1,238	)		(2,069	)		—			(2,069	)
> = 90 days		—		—		—		—		131,231		131,231		—			—			—			—			(9,282	)		(9,282	)		—			(9,282	)
Subtotal		—		12,044,100		—		—		259,054		12,303,154		—			(16,188	)		—			—			(17,818	)		(34,006	)		—			(34,006	)		12,269,148

Consumer loans
0 days		—		4,767,941		—		—		91,079		4,859,020		—			(157,194	)		—			—			(46,179	)		(203,373	)		—			(203,373	)
1 to 29 days		—		178,082		—		—		28,154		206,236		—			(30,683	)		—			—			(15,171	)		(45,854	)		—			(45,854	)
30 to 59 days		—		61,487		—		—		32,197		93,684		—			(17,854	)		—			—			(19,548	)		(37,402	)		—			(37,402	)
60 a 89 days		—		22,661		—		—		27,971		50,632		—			(9,142	)		—			—			(15,796	)		(24,938	)		—			(24,938	)
> = 90 days		—		—		—		—		96,864		96,864		—			—			—			—			(57,190	)		(57,190	)		—			(57,190	)
Subtotal		—		5,030,171		—		—		276,265		5,306,436		—			(214,873	)		—			—			(153,884	)		(368,757	)		—			(368,757	)		4,937,679
Total Loans		15,061,538		21,572,544		240,855		255,939		888,826		38,019,702		(149,436	)		(267,651	)		(9,317	)		(74,645	)		(259,539	)		(760,588	)		(9,131	)		(769,719	)		37,249,983

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

13.

Financial assets at amortized cost, continued:

(k)

Finance lease contracts:

The cash flows to be received by the Bank from finance lease contracts have the following maturities:

	Total receivable				Deferred interest						Net balance receivable (*)
	2024		2023		2024			2023			2024		2023
	MCh$		MCh$		MCh$			MCh$			MCh$		MCh$

Within one year		668,951		610,657		(99,075	)		(88,444	)		569,876		522,213
From 1 to 2 years		501,065		453,713		(71,170	)		(63,079	)		429,895		390,634
From 2 to 3 years		343,985		301,560		(45,055	)		(38,839	)		298,930		262,721
From 3 to 4 years		211,905		199,376		(29,193	)		(25,018	)		182,712		174,358
From 4 to 5 years		165,414		133,011		(20,517	)		(17,248	)		144,897		115,763
After 5 years		401,645		383,050		(45,823	)		(36,064	)		355,822		346,986
Total		2,292,965		2,081,367		(310,833	)		(268,692	)		1,982,132		1,812,675

(*)	The net balance receivable does not include past-due portfolio totaling Ch$9,212 million as of December 31, 2024 (Ch$8,771 million in December 2023).

The Bank maintains financial lease operations associated with movable assets, vehicles, industrial machinery, transportation equipment and real estate. These leases contracts have an average term between 2 and 15 years.

(l)

Purchase of loan portfolio:

During the year ended as of December 31, 2024 and 2023 no portfolio purchases were made.

(m)

Sale or transfer of loans from the loan portfolio:

During the year 2024 and 2023, the following sale were made:

	December 2024
	Carrying amount		Allowances		Sale price		Effect on income (loss) gain
	MM$		MM$		MM$		MM$

Sale of current loans		4,273		449		4,045		221
Sale of written – off loans		—		—		18		18
Total		4,273		449		4,063		239

	December 2023
	Carrying amount		Allowances		Sale price		Effect on income (loss) gain
	MM$		MM$		MM$		MM$

Sale of current loans		17,007		342		17,007		342
Sale of written – off loans		—		—		—		—
Total		17,007		342		17,007		342

(n)

Securitization of own assets:

During the year 2024 and 2023, there are not securitization transactions executed involving its own assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

14.	Investments in other companies:

(a)

In the item “Investments in other companies” include investments of Ch$76,769 million as of December 31, 2024 (Ch$76,994 million as of December 31, 2023), as follows:

		% Ownership Interest				Assets
		2024		2023		2024		2023
Company	Shareholder	%		%		MCh$		MCh$
Associates
Transbank S.A.	Banco de Chile		26.16		26.16		38,660		36,084
Centro de Compensación Automatizado S.A.	Banco de Chile		33.33		33.33		6,784		4,862
Redbanc S.A.	Banco de Chile		38.13		38.13		5,447		4,783
Sociedad Interbancaria de Depósitos de Valores S.A.	Banco de Chile		26.81		26.81		2,704		2,394
Administrador Financiero de Transantiago S.A. ⁽⁴⁾	Banco de Chile		20.00		20.00		2,210		4,285
Servicios de Infraestructura de Mercado OTC S.A.	Banco de Chile		12.33		12.33		1,902		1,803
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.	Banco de Chile		15.00		15.00		1,312		1,199
Subtotal Associates							59,019		55,410

Joint Ventures
Servipag Ltda.	Banco de Chile		50.00		50.00		8,258		7,832
Artikos Chile S.A. ⁽⁵⁾	Banco de Chile		—		50.00		—		1,840
Subtotal Joint Ventures							8,258		9,672
Subtotal							67,277		65,082

Minority Investments
Holding Bursátil Regional S.A. ^{(1) (2) (3)}	Banchile Corredores de Bolsa						6,920		10,243
Banco Latinoamericano de Comercio Exterior S.A. (Bladex) ⁽²⁾	Banco de Chile						2,103		1,286
Bolsa Electrónica de Chile, Bolsa de Valores ⁽²⁾	Banchile Corredores de Bolsa						349		350
Sociedad de Telecomunicaciones Financieras Interbancarias Mundiales (Swift)	Banco de Chile						112		25
CCLV Contraparte Central S.A.	Banchile Corredores de Bolsa						8		8
Subtotal Minority Investments							9,492		11,912
Total							76,769		76,994

(1)

On November 14, 2023, the merger with Sociedad de Infraestructuras de Mercado S.A. (“SIM”) was materialized, being Holding Bursátil Regional S.A. the successor of all its rights and obligations. Additionally, on the same date, a capital increase of the company was carried out, through the contribution of 3,000,000 shares issued by the Santiago Stock Exchange, Stock Market.

(2)

Investments in shares have been irrevocably designated as at fair value through other comprehensive income and, therefore, are recorded at market value in accordance with IFRS 9.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

14.	Investments in other companies:

(3)

On May 3, 2024, the subsidiary Banchile Corredora de Bolsa sold 546,278 shares of the entity. The fair value of the shares sold and the accumulated gain at the moment of disposal were Ch$2,294 and Ch$1,899 million, respectively. The result obtained has been recorded as a credit in equity accounts.

(4)

On July 18, 2024, the company reported the agreement to reduce its share capital for an amount equivalent to Ch$9,810 million.

(5)

During the year 2024, a purchase and sale contract was signed for 100% of the participation held in the company. See Note No. 5 Relevant Events, letter (q).

(b)

The change of investments in companies registered under the equity method in the year of 2024 and 2023, are as follows:

	2024			2023
	MCh$			MCh$

Balance as of January 1,		65,082			56,177
Acquisition of investments in companies		—			—
Participation on income in companies with significant influence and joint control		8,730			13,409
Dividends received		(3,019	)		(4,675	)
Sale of participation in Artikos S.A. (*)		(1,572	)		—
Others		(1,944	)		171
Total		67,277			65,082

(*)

See Note No. 5 Relevant Events, letter (n) and (q).

(c)

During the year ended as of December 31, 2024 and 2023 no impairment has incurred in these investments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

14.

Investments in other companies, continued:

(d)

Summarized Financial Information of Associates and Joint Ventures

	Associates																					Joint Ventures
December 2024	Centro de Compensación Automatizado S.A.			Sociedad Operadora de la Cámara de Compensación de Pagos de Alto ValorS.A.			Sociedad Interbancaria de Depósito de Valores S.A.			Redbanc S.A.			Transbank S.A.			Administrador Financiero de Transantiago S.A.			Servicios de Infraestructura de Mercado OTC S.A.			Servipag Ltda.
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Current assets		13,958			1,737			60			15,347			1,814,213			58,605			11,562			101,289
Non-current assets		9,462			8,223			10,036			14,062			161,533			887			11,538			21,034
Total Assets		23,420			9,960			10,096			29,409			1,975,746			59,492			23,100			122,323

Current liabilities		3,585			1,120			551			13,366			1,811,753			46,985			7,285			98,808
Non-current liabilities		43			384			—			1,932			17,176			2,371			748			6,999
Total Liabilities		3,628			1,504			551			15,298			1,828,929			49,356			8,033			105,807
Equity		19,792			8,456			9,545			14,111			146,817			10,136			15,058			16,516
Minority interest		—			—			—			—			—			—			9			—
Total Liabilities and Equity		23,420			9,960			10,096			29,409			1,975,746			59,492			23,100			122,323

Operating income		21,282			6,651			9			60,139			888,114			5,023			8,979			44,161
Operating expenses		(14,545	)		(5,843	)		(54	)		(58,167	)		(722,391	)		(2,541	)		(8,557	)		(40,929	)
Other expenses or income		741			390			1,848			234			(154,142	)		1,424			1,002			1,185
Gain (loss) before tax		7,478			1,198			1,803			2,206			11,581			3,906			1,424			4,417
Income tax		(1,853	)		(231	)		—			(467	)		(1,736	)		(855	)		(202	)		(1,066	)
Gain for the year		5,625			967			1,803			1,739			9,845			3,051			1,222			3,351

	Associates																					Joint Ventures
December 2023	Centro de Compensación Automatizado S.A.			Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.			Sociedad Interbancaria de Depósito de Valores S.A.			Redbanc S.A.			Transbank S.A.			Administrador Financiero de Transantiago S.A.			Servicios de Infraestructura de Mercado OTC S.A.			Servipag Ltda.			Artikos Chile SA.
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MM$

Current assets		6,380			841			104			11,054			1,362,961			66,716			21,042			84,569			3,768
Non-current assets		10,983			8,377			8,834			16,275			164,518			867			12,760			18,137			1,724
Total Assets		17,363			9,218			8,938			27,329			1,527,479			67,583			33,802			102,706			5,492

Current liabilities		3,034			899			525			11,625			1,355,563			47,242			18,768			82,503			1,898
Non-current liabilities		247			496			—			3,236			36,641			—			766			4,539			406
Total Liabilities		3,281			1,395			525			14,861			1,392,204			47,242			19,534			87,042			2,304
Equity		14,082			7,823			8,413			12,468			135,275			20,341			14,259			15,664			3,188
Minority interest		—			—			—			—			—			—			9			—			—
Total Liabilities and Equity		17,363			9,218			8,938			27,329			1,527,479			67,583			33,802			102,706			5,492

Operating income		8,973			5,116			14			58,576			969,393			4,818			9,355			43,709			5,571
Operating expenses		(2,812	)		(4,823	)		(50	)		(57,847	)		(821,426	)		(2,540	)		(8,667	)		(39,366	)		(3,558	)
Other expenses or income		589			345			1,754			127			(113,486	)		2,287			743			1,503			137
Gain (loss) before tax		6,750			638			1,718			856			34,481			4,565			1,431			5,846			2,150
Income tax		(1,692	)		(66	)		—			(100	)		(7,667	)		(949	)		(430	)		(1,444	)		(511	)
Gain for the year		5,058			572			1,718			756			26,814			3,616			1,001			4,402			1,639

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

15.

Intangible Assets:

(a)

The composition of intangible assets as of December 31, 2024 and 2023, are as follows:

	Average useful Life				Average remaining amortization				Gross balance				Accumulated Amortization						Net balance
	2024		2023		2024		2023		2024		2023		2024			2023			2024		2023
	Years		Years		Years		Years		MCh$		MCh$		MCh$			MCh$			MCh$		MCh$
Other independently originated intangible assets		6		6		4		5		379,546		322,148		(220,990	)		(184,944	)		158,556		137,204
Total										379,546		322,148		(220,990	)		(184,944	)		158,556		137,204

(b)

The change of intangible assets during the year ended as of December 31, 2024 and 2023, are as follows:

	2024			2023
	MCh$			MCh$
Gross Balance
Balance as of January 1,		322,148			263,268
Acquisition		57,617			59,955
Disposals/ write-downs		(219	)		(1,050	)
Impairment (*)		—			(25	)
Total		379,546			322,148

Accumulated Amortization
Balance as of January 1,		(184,944	)		(156,648	)
Amortization for the year (**)		(36,265	)		(29,346	)
Disposals/ write-downs		219			1,050
Impairment (*)		—			—
Total		(220,990	)		(184,944	)
Balance Net		158,556			137,204

(*)

See Note No. 40 Impairment of non-financial assets.

(**)

See Note No. 39 Depreciation and Amortization.

(c)

As of December 31, 2024, the Bank maintains Ch$13,889 million (Ch$14,869 million as of December 31, 2023) of assets associated with technological developments in progress.

(d)

As of December 31, 2024 and 2023, there are no restrictions on the intangible assets of the Bank. Furthermore, there are no intangible assets held as collateral for the fulfillment of obligations.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

16.

Property and equipment:

(a)

The properties and equipment as of December 31, 2024 and 2023 are composed as follows:

	Average useful Life		Average remaining depreciation		Gross balance				Accumulated Depreciation						Net balance
	2024	2023	2024	2023	2024		2023		2024			2023			2024		2023
	Years	Years	Years	Years	MCh$		MCh$		MCh$			MCh$			MCh$		MCh$
Type of property and equipment:
Land and Buildings	26	26	18	18		327,862		322,766		(173,132	)		(165,286	)		154,730		157,480
Equipment	5	5	3	3		261,142		256,933		(236,146	)		(221,083	)		24,996		35,850
Others	7	7	4	4		63,198		61,118		(53,851	)		(52,791	)		9,347		8,327
Total						652,202		640,817		(463,129	)		(439,160	)		189,073		201,657

(b)

The changes in properties and equipment as of December 31, 2024 and 2023, are as follows:

	December 2024
	Land and Buildings			Equipment			Others			Total
	MCh$			MCh$			MCh$			MCh$
Gross Balance
Balance as of January 1, 2024		322,766			256,933			61,118			640,817
Additions		7,369			5,286			3,699			16,354
Write-downs and sales of the year		(2,273	)		(1,075	)		(1,619	)		(4,967	)
Impairment () (*)		—			(2	)		—			(2	)
Total		327,862			261,142			63,198			652,202

Accumulated Depreciation
Balance as of January 1, 2024		(165,286	)		(221,083	)		(52,791	)		(439,160	)
Depreciation of the year (*)		(9,725	)		(15,881	)		(2,566	)		(28,172	)
Write-downs and sales of the year		1,879			818			1,506			4,203
Total		(173,132	)		(236,146	)		(53,851	)		(463,129	)
Balance as of December 31, 2024		154,730			24,996			9,347			189,073

	December 2023
	Land and Buildings			Equipment			Others			Total
	MCh$			MCh$			MCh$			MCh$
Gross Balance
Balance as of January 1, 2023		316,968			246,706			58,890			622,564
Additions		10,277			11,136			3,338			24,751
Write-downs and sales of the year		(4,479	)		(906	)		(1,110	)		(6,495	)
Impairment () (*)		—			(3	)		—			(3	)
Total		322,766			256,933			61,118			640,817

Accumulated Depreciation
Balance as of January 1, 2023		(157,810	)		(203,136	)		(51,494	)		(412,440	)
Depreciation of the year (*)		(9,295	)		(18,733	)		(2,365	)		(30,393	)
Write-downs and sales of the year		1,819			786			1,068			3,673
Total		(165,286	)		(221,083	)		(52,791	)		(439,160	)
Balance as of December 31, 2023		157,480			35,850			8,327			201,657

(*)

See Note No. 39 Depreciation and Amortization.

(**)

See Note No. 40 Impairment of non-financial assets.

(***)

Does not include provision for write-off of Property for Ch$1,119 million (Ch$1,751 million as of December 31, 2023).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

16.

Property and equipment, continued:

(c)

As of December 31, 2024, the Bank records Ch$5,510 million (Ch$3,395 million as of December 31, 2023) in assets under construction.

(d)

As of December 31, 2024 and 2023, there are no restrictions on the properties and equipment of the Bank and its subsidiaries. Furthermore, there are no properties and equipment held as collateral for the fulfillment of obligations.

17.

Right-of-use assets and Lease liabilities:

(a)

The composition of the rights over leased assets as of December 31, 2024 and 2023, is as follows:

	Gross Balance				Accumulated Depreciation						Net Balance
	2024		2023		2024			2023			2024		2023
	MCh$		MCh$		MCh$			MCh$			MCh$		MCh$
Categories
Buildings		126,655		145,849		(63,657	)		(75,361	)		62,998		70,488
Floor space for ATMs		36,080		33,060		(9,307	)		(2,669	)		26,773		30,391
Improvements to leased properties		28,783		30,426		(21,675	)		(22,416	)		7,108		8,010
Total		191,518		209,335		(94,639	)		(100,446	)		96,879		108,889

(b)

The changes of the rights over leased assets as of December 31, 2024 and 2023, is as follows:

	December 2024
	Buildings			Floor space for ATMs			Improvements to leased properties			Total
	MCh$			MCh$			MCh$			MCh$

Gross Balance
Balance as of January 1, 2024		145,849			33,060			30,426			209,335
Additions		13,892			4,385			872			19,149
Write-downs		(33,019	)		(1,197	)		(2,515	)		(36,731	)
Remeasurement		(67	)		(168	)		—			(235	)
Other incremental		—			—			—			—
Total		126,655			36,080			28,783			191,518

Accumulated Depreciation
Balance as of January 1, 2024		(75,361	)		(2,669	)		(22,416	)		(100,446	)
Depreciation of the year (*)		(20,939	)		(7,733	)		(1,135	)		(29,807	)
Write-downs		32,638			1,123			1,876			35,637
Other incremental		5			(28	)		—			(23	)
Total		(63,657	)		(9,307	)		(21,675	)		(94,639	)
Balance as of December 31, 2024		62,998			26,773			7,108			96,879

(*)

See Note No. 39 Depreciation and Amortization.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

17.

Right-of-use assets and Lease liabilities, continued:

	December 2023
	Buildings			Floor space for ATMs			Improvements to leased properties			Total
	MCh$			MCh$			MCh$			MCh$

Gross Balance
Balance as of January 1, 2023		144,482			43,492			28,595			216,569
Additions		16,790			31,033			1,993			49,816
Write-downs		(14,935	)		(42,821	)		(162	)		(57,918	)
Remeasurement		(488	)		(392	)		—			(880	)
Other incremental		—			1,748			—			1,748
Total		145,849			33,060			30,426			209,335

Accumulated Depreciation
Balance as of January 1, 2023		(64,352	)		(35,735	)		(21,561	)		(121,648	)
Depreciation of the year (*)		(21,459	)		(9,736	)		(1,017	)		(32,212	)
Write-downs		10,450			42,802			162			53,414
Total		(75,361	)		(2,669	)		(22,416	)		(100,446	)

Balance as of December 31, 2023		70,488			30,391			8,010			108,889

(*)

See Note No. 39 Depreciation and Amortization.

(c)

Below are the future maturities (including unearned interest) of the lease liabilities as of December 31, 2024 and 2023:

	December 2024
	Demand		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 12 months		Over 1 year and up to 3 years		Over 3 years and up to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Lease associated to:
Buildings		—		1,692		3,374		14,158		23,675		14,245		10,657		67,801
ATMs		—		699		1,396		6,228		15,353		5,532		28		29,236
Total		—		2,391		4,770		20,386		39,028		19,777		10,685		97,037

	December 2023
	Demand		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 12 months		Over 1 year and up to 3 years		Over 3 years and up to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Lease associated to:
Buildings		—		1,737		3,429		12,412		25,178		18,205		15,945		76,906
ATMs		—		641		1,275		5,538		13,932		11,449		15		32,850
Total		—		2,378		4,704		17,950		39,110		29,654		15,960		109,756

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

17.

Right-of-use assets and Lease liabilities, continued:

The Bank and its subsidiaries maintain contracts with certain renewal options and for which there is reasonable certainty that said option shall be carried out. In such cases, the lease period used to measure the liability and assets corresponds to an estimate of future renewals.

(d)

The changes of the obligations for lease liabilities and the flows for the years 2024 and 2023 are as follows:

	Total cash flow for the year
	MCh$
Lease liability
Balances as of January 1, 2023		89,369
Liabilities for new lease agreements		43,931
Interest accrued expenses		1,980
Payments of capital and interests		(32,084	)
Remeasurement		(880	)
Derecognized contracts		(4,714	)
Readjustments		3,878
Balances as of December 31, 2023		101,480

Liabilities for new lease agreements		14,648
Interest accrued expenses		2,381
Payments of capital and interests		(29,991	)
Remeasurement		(235	)
Derecognized contracts		(457	)
Readjustments		3,603
Balances as of December 31, 2024		91,429

(e)

The future cash flows related to short-term lease agreements in effect as of December 31, 2024 correspond to Ch$3,557 million (Ch$4,799 million as of December 31, 2023).

(f)

As of December 31, 2024, the minimum future rental income to be received from operating leases amounts to Ch$14,101 million (Ch$15,723 million as of December 31, 2023).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

18.

Taxes:

(a)

Current Taxes:

The Bank and its subsidiaries at the end of each year, have constituted a First Category Income Tax Provision, which was determined based on current tax regulations, and has been reflected in the Statement of Financial Position net of taxes to be recovered or payable, as applicable, as of December 31, 2024 and 2023 according to the following detail:

	2024			2023
	MCh$			MCh$

Income tax		(333,719	)		(298,877	)
Less:
Monthly prepaid taxes		483,615			429,554
Credit for training expenses		1,820			2,300
Others		8,021			7,409
Total Tax Refundable (net)		159,737			140,386

Tax rate		27	%		27	%

	2024			2023
	MCh$			MCh$

Current tax assets		159,869			141,194
Current tax liabilities		(132	)		(808	)
Total tax receivable (payable), net		159,737			140,386

(b)

Income Tax:

The effect of the tax expense during the years between January 1 and December 31, 2024 and 2023, are broken down as follows:

	2024			2023
	MCh$			MCh$
Income tax expense:
Current year tax		339,604			268,318
Tax Previous year		(5,343	)		620
Subtotal		334,261			268,938
(Credit) Debit for deferred taxes:
Origin and reversal of temporary differences		(16,678	)		(3,682	)
Subtotal		(16,678	)		(3,682	)
Others		822			8,631
Net charge to income for income taxes		318,405			273,887

100

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

18.

Taxes, continued:

(c)

Reconciliation of effective tax rate:

The following is a reconciliation of the income tax rate to the effective rate applied to determine the Bank’s income tax expense as of December 31, 2024 and 2023:

	December 2024						December 2023
	Tax rate						Tax rate
	%			MCh$			%			MCh$

Income tax calculated on net income before tax		27.00			411,965			27.00			409,731
Additions or deductions		(1.17	)		(17,924	)		(3.59	)		(54,476	)
Price-level restatement		(4.97	)		(75,802	)		(5.39	)		(81,809	)
Others		0.01			166			0.03			441
Effective rate and income tax expense		20.87			318,405			18.05			273,887

The effective rate for income tax for the year 2024 is 20.87% (18.05% in December 2023).

(d)

Effect of deferred taxes on income and equity:

The Bank and its subsidiaries have recorded the effects of deferred taxes in their Consolidated Financial Statements. Below are the debtor and creditor differences as of December 31, 2024:

.	Balances as of December 31,		Effect on						Balances as of December 31,
	2023		Income			Equity			2024
	MCh$		MCh$			MCh$			MCh$
Debit Differences:
Allowances for loan losses		372,267		12,678			—			384,945
Personnel provision		24,404		232			—			24,636
Provision of undrawn credit lines		3,183		54			—			3,237
Staff vacations provisions		12,025		(463	)		—			11,562
Accrued interests adjustments from impaired loans		14,937		1,597			—			16,534
Staff severance indemnities provision		1,252		(217	)		(31	)		1,004
Provision of credit cards expenses		9,857		1,111			—			10,968
Provision of accrued expenses		10,737		(506	)		—			10,231
Adjustment for valuation of investments and equity instruments at fair value through other comprehensive income		277		—			198			475
Leasing		103,352		7,591			—			110,943
Incomes received in advance		5,149		(1,035	)		—			4,114
Exchange rate difference		—		—			—			—
Property and equipment valuation difference		2,876		3,924			—			6,800
Other adjustments		31,009		(7,526	)		—			23,483
Total Debit Differences		591,325		17,440			167			608,932

Credit Differences:
Intangible (software and others)		19,085		5,913			—			24,998
Adjustment for valuation of investments and equity instruments at fair value through other comprehensive income		—		—			—			—
Transitory assets		8,874		852			—			9,726
Loans accrued to effective rate		2,484		(151	)		—			2,333
Prepaid expenses		10,885		(4,485	)		—			6,400
Exchange rate difference		1,636		(835	)		—			801
Activated bond placement expense		5,257		(362	)		—			4,895
Other adjustments		3,286		(170	)		—			3,116
Total Credit Differences		51,507		762			—			52,269
Total, Net		539,818		16,678			167			556,663

101

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

18.

Taxes, continued:

(d)

Effect of deferred taxes on income and equity, continued:

Reconciliation to Statement of Financial Position:

	2024			2023
	MCh$			MCh$

Deferred tax assets		556,829			539,818
Deferred tax liabilities		(166	)		—
Total deferred taxes		556,663			539,818

Below are the debtor and creditor differences as of December 31, 2023:

.	Balances as of December 31,		Effect on						Balances as of December 31,
	2022		Income			Equity			2023
	MCh$		MCh$			MCh$			MCh$
Debit differences:
Allowances for loan losses		376,743		(4,476	)		—			372,267
Personnel provision		20,228		4,176			—			24,404
Provision of undrawn credit lines		3,429		(246	)		—			3,183
Staff vacations provisions		11,139		886			—			12,025
Accrued interests adjustments from impaired loans		10,305		4,632			—			14,937
Staff severance indemnities provision		1,368		(136	)		20			1,252
Provision of credit cards expenses		9,146		711			—			9,857
Provision of accrued expenses		11,829		(1,092	)		—			10,737
Adjustment for valuation of investments and equity instruments at fair value through other comprehensive income		3,670		—			(3,393	)		277
Leasing		89,821		13,531			—			103,352
Incomes received in advance		9,012		(3,863	)		—			5,149
Property and equipment valuation difference		403		2,473			—			2,876
Other adjustments		31,552		(543	)		—			31,009
Total Debit Differences		578,645		16,053			(3,373	)		591,325

Credit differences:
Intangible (software and others)		11,340		7,745			—			19,085
Transitory assets		7,953		921			—			8,874
Loans accrued to effective rate		2,441		43			—			2,484
Prepaid expenses		2,688		8,197			—			10,885
Exchange rate difference		3,406		(1,770	)		—			1,636
Activated bond placement expense		5,810		(553	)		—			5,257
Other adjustments		5,498		(2,212	)		—			3,286
Total Credit Differences		39,136		12,371			—			51,507
Total, Net		539,509		3,682			(3,373	)		539,818

102

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

18.

Taxes, continued:

(e)

For the purpose of complying with the Circular No. 47 issued by the Chilean Internal Revenue Service (SII) and No. 3,478 issued by the CMF, dated August 18, 2009 the changes and effects generated by the application of Article 31, No. 4 of the Income Tax Law are detailed below.

As the circular requires, the information corresponds only to the Bank’s credit operations and does not consider operations of subsidiary entities that are consolidated in these Consolidated Financial Statements.

					Tax value assets
(e.1) Loans and advance to banks and Loans to customers as of December 31, 2024	Book value assets (*)		Tax value assets		Past-due loans with guarantees		Past-due loans without guarantees		Total Past-due loans
	MCh$		MCh$		MCh$		MCh$		MCh$

Loans and advance to banks		666,815		667,703		—		—		—
Commercial loans		17,209,033		17,619,880		48,979		94,025		143,004
Consumer loans		5,183,601		5,648,054		1,357		34,500		35,857
Residential mortgage loans		13,180,186		13,227,905		13,908		685		14,593
Total		36,239,635		37,163,542		64,244		129,210		193,454

					Tax value assets
(e.1) Loans and advance to banks and Loans to customers as of December 31, 2023	Book value assets (*)		Tax value assets		Past-due loans with guarantees		Past-due loans without guarantees		Total Past-due loans
	MCh$		MCh$		MCh$		MCh$		MCh$

Loans and advance to banks		2,519,180		2,519,931		—		—		—
Commercial loans		17,217,023		17,828,756		41,329		107,464		148,793
Consumer loans		4,937,304		5,331,412		1,206		37,532		38,738
Residential mortgage loans		12,269,148		12,308,025		9,301		586		9,887
Total		36,942,655		37,988,124		51,836		145,582		197,418

(*)

In accordance with the mentioned Circular and instructions from the SII, the value of Financial Statement assets, are presented on an individual basis (only Banco de Chile) net of allowance for loan losses and do not include lease and factoring operations.

103

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

18.

Taxes, continued:

(e.2) Provisions on past-due loans	Balance as of January 1, 2024		Charge-offs against provisions			Provisions established		Provisions released			Balance as of December 31, 2024
	MCh$		MCh$			MCh$		MCh$			MCh$

Commercial loans		107,464		(93,816	)		123,192		(42,815	)		94,025
Consumer loans		37,532		(330,064	)		348,148		(21,116	)		34,500
Residential mortgage loans		586		(1,610	)		2,820		(1,111	)		685
Total		145,582		(425,490	)		474,160		(65,042	)		129,210

(e.2) Provisions on past-due loans	Balance as of January 1, 2023		Charge-offs against provisions			Provisions established		Provisions released			Balance as of December 31, 2023
	MCh$		MCh$			MCh$		MCh$			MCh$

Commercial loans		75,561		(75,702	)		137,857		(30,252	)		107,464
Consumer loans		28,448		(317,350	)		345,142		(18,708	)		37,532
Residential mortgage loans		669		(2,088	)		3,033		(1,028	)		586
Total		104,678		(395,140	)		486,032		(49,988	)		145,582

(e.3) Charge-offs and recoveries	2024		2023
	MCh$		MCh$

Charge-offs Art. 31 No. 4 second subparagraph		26,248		28,434
Write-offs resulting in provisions released		77		60
Recovery or renegotiation of written-off loans		1,306		2,139

(e.4) Application of Art. 31 No. 4 first & third subsections of the income tax law	2024		2023
	MCh$		MCh$

Charge-offs in accordance with first subsection		—		—
Write-offs in accordance with third subsection		77		60

104

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

19.

Other Assets:

At the end of each year, the item is composed as follows:

	2024			2023
	MCh$			MCh$

Accounts receivable from the General Treasury of the Republic and other fiscal organizations		349,282			229,682
Cash collateral provided for derivative financial transactions		347,788			324,899
Accounts receivable from third parties		195,364			99,416
Debtors from brokerage of financial instruments		195,252			254,360
Assets to be leased out as lessor (*)		162,594			157,980
Prepaid expenses		53,645			67,804
Income from regular activities from contracts with customers		24,006			13,832
Other provided cash collateral		14,806			3,323
Investment properties		11,406			11,763
Pending transactions		3,351			3,330
Accumulated impairment in respect of other assets receivable		(1,817	)		(618	)
Other Assets		17,864			20,242
Total		1,373,541			1,186,013

(*)

Correspond to fixed assets to be delivered under the financial lease modality.

105

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

20.

Non-current assets and disposal groups held for sale and Liabilities included in disposal groups for sale:

(a)

At the end of each year, the item is composed as follows:

	2024			2023
	MCh$			MCh$

Assets received in lieu of payment or awarded at judicial sale (*)
Assets awarded at judicial sale		27,854			20,012
Assets received in lieu of payment		5,075			1,384
Provision for assets received in lieu of payment or awarded		(82	)		(60	)

Non-current assets for sale
Investments in other companies		—			—
Assets for recovery of assets transferred in financial leasing operations		603			1,555

Disposal groups held for sale		—			—
Total		33,450			22,891

(*)	Assets received in lieu of payment refer to assets accepted as payment for past-due or written-off debts owed by customers. The assets acquired in this manner does not exceed 20% of the Bank’s effective equity.

(b)

The changes of the provision for assets received in lieu of payment during the year 2024 and 2023 are as follows:

Provision for assets received in lieu of payment	MCh$

Balance as of January 1, 2023		25
Provisions used		(1,032	)
Provisions established		1,067
Provisions released		—
Balance as of December 31, 2023		60
Provisions used		(1,890	)
Provisions established		1,912
Provisions released		—
Balance as of December 31, 2024		82

(c)

The Bank does not present liabilities classified in the disposal group for sale during the years December 31, 2024 and 2023.

106

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

21.

Financial liabilities held for trading at fair value through profit or loss:

The item detail is as follows:

	2024		2023
	MCh$		MCh$

Financial derivative contracts		2,444,806		2,196,921
Other financial instruments		990		2,305
Total		2,445,796		2,199,226

As of December 31, 2024 and 2023, the Bank maintains the following debt portfolio of derivative instruments:

	Notional amount of contract with final expiration date in
	Demand				Up to 1 month				Over 1 month and up to 3 months				Over 3 months and up to 12 months				Over 1 year and up to 3 years				Over 3 year and up to 5 years				Over 5 years				Total				Fair value Liabilities
	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Currency forward		—		—		3,638,001		3,939,379		2,003,870		2,316,619		2,583,070		2,458,194		863,850		283,291		—		3,590		—		—		9,088,791		9,001,073		241,632		221,965
Interest rate swap		—		—		619,104		512,235		1,627,918		1,843,294		4,583,573		6,210,930		7,622,130		6,735,372		3,963,087		3,815,430		3,921,627		4,322,545		22,337,439		23,439,806		650,580		817,967
Interest rate swap and cross currency swap		—		—		96,844		101,948		198,892		404,210		2,331,613		1,201,167		2,909,482		3,331,601		1,978,681		1,712,666		2,879,356		2,845,087		10,394,868		9,596,679		1,547,488		1,152,057
Call currency options		—		—		10,499		3,887		38,376		13,859		18,825		10,051		—		—		—		—		—		—		67,700		27,797		4,151		1,061
Put currency options		—		—		4,761		4,181		46,913		51,284		64,449		124,029		11,340		19,566		—		—		—		—		127,463		199,060		955		3,871
Total		—		—		4,369,209		4,561,630		3,915,969		4,629,266		9,581,530		10,004,371		11,406,802		10,369,830		5,941,768		5,531,686		6,800,983		7,167,632		42,016,261		42,264,415		2,444,806		2,196,921

Other instruments or financial liabilities:

	2024		2023
	MCh$		MCh$

Current accounts and other demand deposits		—		—
Savings accounts and other time deposits		—		—
Debt instruments issued		—		—
Others		990		2,305
Total		990		2,305

107

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost:

The item detail is as follows:

	2024		2023
	MCh$		MCh$

Current accounts and other demand deposits		14,263,303		13,321,660
Saving accounts and time deposits		14,168,703		15,365,562
Obligations by repurchase agreements and securities lending		109,794		157,173
Borrowings from financial institutions		1,103,468		5,360,715
Debt financial instruments issued		9,690,069		9,360,065
Other financial obligations		284,479		339,305
Total		39,619,816		43,904,480

(a)

Current accounts and other demand deposits:

At the end of each year, the composition of current accounts and other demand deposits is as follows:

	2024		2023
	MCh$		MCh$

Current accounts		11,769,419		11,025,685
Other demand obligations		1,382,554		1,224,829
Demand deposits accounts		652,075		625,923
Other demand deposits		459,255		445,223
Total		14,263,303		13,321,660

(b)

Saving accounts and time deposits:

At the end of each year, the composition of saving accounts and time deposits is as follows:

	2024		2023
	MCh$		MCh$

Time deposits		13,764,830		14,979,565
Term savings accounts		374,593		355,725
Other term balances payable		29,280		30,272
Total		14,168,703		15,365,562

108

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

(c)

Obligations by repurchase agreements and securities lending:

The Bank obtains financing by selling financial instruments and agreeing to repurchase them in the future, plus interest at a prefixed rate. As of December 31, 2024 and 2023, the repurchase agreements are the following:

	2024		2023
	MCh$		MCh$
Transaction with domestic banks		—		—

Transaction with foreign banks		—		—

Transaction with other domestic entities
Repurchase agreements		109,794		157,173
Obligations from securities lending		—		—

Transaction with other foreign entities		—		—
Total		109,794		157,173

The fair value of the financial instruments delivered as collateral by the Bank and its subsidiaries, in sales transactions with repurchase agreement and securities lending as of December 31, 2024 amounts to Ch$109,505 million (Ch$157,089 million in December 2023). In the event that the Bank and its subsidiaries enter into default or bankruptcy, the counterparty is authorized to sell or deliver these investments as collateral.

109

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

(d)

Borrowings from Financial Institutions:

At the end of each year, borrowings from financial institutions are detailed as follows:

	2024		2023
	MCh$		MCh$

Foreign banks
Foreign trade financing
HSBC Bank		245,469		87,602
Bank of New York Mellon		240,008		218,686
Caixabank S.A.		201,802		48,918
Bank of America		124,057		142,113
Zurcher Kantonalbank		90,386		92,704
DZ Bank AG Deutsche		41,646		—
Standard Chartered Bank		2,685		119,794
Citibank N.A. United State		2,189		51,297
Wells Fargo Bank		1,890		42,117
Commerzbank AG		1,417		40,766
Others		71		92

Borrowings and other obligations
Wells Fargo Bank		150,775		132,523
Citibank N.A. United Kingdom		986		—
Citibank N.A. United State		—		35,345
Commerzbank AG		—		117
Others		87		60
Subtotal foreign banks		1,103,468		1,012,134

Chilean Central Bank (*)		—		4,348,581
Total		1,103,468		5,360,715

(*)

Financing provided by the Chilean Central Bank to deliver liquidity to the economy and support the credit flow to households and companies, related to the Conditional Credit Facility to Increase Lending (FCIC by its Spanish initials). On July 1, 2024, the last phase of the program expired and was paid in full on that date.

110

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

(e)

Debt financial instruments issued:

At the end of each year, the composition of debt financial instruments issued as follows:

	2024		2023
	MCh$		MCh$
Letters of credit
Letters of credit for housing		849		1,433
Letters of credit for general purposes		1		11

Bonds
Current Bonds		9,689,219		9,358,621
Mortgage bonds		—		—
Total		9,690,069		9,360,065

During the year ended December 31, 2024 Banco de Chile has placed bonds for Ch$1,012,638 million, which corresponds to Short-Term Current Bonds and Long-Term Bonds for amounts of Ch$28,049 and Ch$984,589 million respectively, according to the following details:

Short-term Bonds

Counterparty

Currency

Amount
MCh$

Annual
interest rate
%

Issued date

Maturity date

Wells Fargo Bank

USD

28,049

5,46

05/07/2024

08/07/2024

Total

28,049

111

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

Long-Term Bonds

Serie	Currency	Amount MCh$		Terms Years	Annual interest rate %		Issued date	Maturity date

BCHIEZ1121	UF		107,462	4		3.72	01/15/2024	05/01/2028
BCHIEZ1121	UF		31,197	4		3.72	01/16/2024	05/01/2028
BCHICE1215	UF		21,998	7		3.20	01/31/2024	12/01/2031
BCHICH1215	UF		7,350	8		3.15	02/08/2024	12/01/2032
BCHIFA0222	UF		32,349	4		3.25	03/15/2024	08/01/2028
BCHIFA0222	UF		19,518	4		3.32	03/21/2024	08/01/2028
BCHIEY1021	UF		12,474	4		3.29	03/22/2024	04/01/2028
BCHIFA0222	UF		14,228	4		3.29	03/25/2024	08/01/2028
BCHIGG1121	UF		12,345	11		3.35	03/26/2024	05/01/2035
BCHIFA0222	UF		3,566	4		3.24	03/27/2024	08/01/2028
BCHIEY1021	UF		17,696	4		3.28	04/04/2024	04/01/2028
BCHIEX0122	UF		9,231	1		3.10	04/12/2024	07/01/2025
BCHIEX0122	UF		14,793	1		3.02	04/17/2024	07/01/2025
BCHIHX1223	UF		32,225	20		3.49	05/08/2024	12/01/2044
BCHIHX1223	UF		11,376	20		3.49	05/09/2024	12/01/2044
BCHIHX1223	UF		5,727	20		3.46	05/17/2024	12/01/2044
BCHIHX1223	UF		15,283	20		3.46	05/22/2024	12/01/2044
BCHIHX1223	UF		37,202	20		3.55	06/04/2024	12/01/2044
BCHIFO0721	UF		3,575	8		3.48	06/06/2024	01/01/2032
BCHIEY1021	UF		3,606	4		3.20	06/10/2024	04/01/2028
BCHIGG1121	UF		8,366	11		3.53	06/11/2024	05/01/2035
BCHIFB1021	UF		21,220	5		3.35	06/12/2024	04/01/2029
BCHIEY1021	UF		12,648	4		3.29	07/09/2024	04/01/2028
BCHIFB1021	UF		39,504	5		3.50	07/09/2024	04/01/2029
BCHIFB1021	UF		1,796	5		3.49	07/09/2024	04/01/2029
BCHIFB1021	UF		5,399	5		3.45	07/10/2024	04/01/2029
BCHIFC0721	UF		37,442	6		3.47	07/11/2024	01/01/2030
BCHIFC0721	UF		7,147	6		3.43	07/12/2024	01/01/2030
BCHIHX1223	UF		7,550	20		3.50	07/18/2024	12/01/2044
BCHIFB1021	UF		25,454	5		3.23	07/23/2024	04/01/2029
BCHIFA0222	UF		18,404	4		3.04	07/24/2024	08/01/2028
BCHIFO0721	UF		19,198	8		2.50	09/27/2024	01/01/2032
BCHIHX1223	UF		94,840	20		2.36	09/30/2024	12/01/2044
BCHIHP1223	UF		220,035	16		2.37	10/01/2024	12/01/2040
Subtotal			932,204

BONO HKD	HKD		52,385	10		4.22	02/02/2024	02/09/2034
Subtotal other currencies			52,385
Total			984,589

112

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

During the year ended December 31, 2023 Banco de Chile has placed bonds for Ch$1,224,480 million, which corresponds to Short-Term Current Bonds and Long-Term Bonds for amounts of Ch$286,354 and Ch$938,126 million respectively, according to the following details:

Short-term Bonds

Counterparty

Currency

Amount
MCh$

Annual
interest rate
%

Issued

date

Maturity date

Wells Fargo Bank

USD

39,449

5.65

03/30/2023

08/01/2023

Wells Fargo Bank

USD

39,449

5.65

03/30/2023

07/28/2023

Wells Fargo Bank

USD

40,385

5.60

04/03/2023

10/02/2023

Wells Fargo Bank

USD

40,425

5.56

04/04/2023

09/01/2023

Wells Fargo Bank

USD

42,041

5.85

08/01/2023

02/01/2024

Wells Fargo Bank

USD

42,303

5.75

08/25/2023

11/27/2023

Wells Fargo Bank

USD

42,302

5.85

08/25/2023

01/22/2024

Total

286,354

Long-Term Current Bonds

Serie	Currency	Amount MCh$		Terms Years	Annual interest rate %		Issued date	Maturity date

BCHIGI0322	UF		143,510	12		2.61	01/06/2023	09/01/2035
BCHIDG1116	CLP		9,179	4		6.55	03/16/2023	05/01/2027
BCHIDG1116	CLP		10,604	4		6.55	03/23/2023	05/01/2027
BCHIGG1121	UF		23,889	12		2.50	04/11/2023	05/01/2035
BCHICG0815	UF		18,716	9		2.65	04/28/2023	08/01/2032
BCHIGB0322	UF		16,521	11		2.78	05/18/2023	09/01/2034
BCHICH1215	UF		10,939	9		2.96	06/02/2023	12/01/2032
BCHIGB0322	UF		7,747	11		2.78	06/06/2023	09/01/2034
BCHIBU0815	UF		10,346	6		3.39	06/08/2023	08/01/2029
BCHIBU0815	UF		18,200	6		3.39	06/09/2023	08/01/2029
BCHICE1215	UF		27,024	8		2.94	06/09/2023	12/01/2031
BCHIFW1121	UF		142,385	10		2.89	06/12/2023	05/01/2033
BCHIBU0815	UF		23,372	6		3.26	06/15/2023	08/01/2029
BCHIGB0322	UF		7,217	11		2.78	06/16/2023	09/01/2034
BCHICI0815	UF		5,658	10		3.04	08/01/2023	02/01/2033
BCHICI0815	UF		18,388	10		3.35	08/18/2023	02/01/2033
BCHICH1215	UF		8,919	9		3.34	08/24/2023	12/01/2032
BCHIBO0815	UF		22,243	4		3.61	08/25/2023	02/01/2028
BCHIBO0815	UF		48,392	4		3.61	08/29/2023	02/01/2028
BCHICE1215	UF		9,349	8		3.27	08/29/2023	12/01/2031
BCHIFB1021	UF		6,996	6		4.16	11/03/2023	04/01/2029
BCHIFB1021	UF		14,667	6		4.16	11/07/2023	04/01/2029
BCHIEY1021	UF		29,979	5		4.26	11/08/2023	04/01/2028
BCHIFB1021	UF		3,335	6		4.16	11/09/2023	04/01/2029
BCHICI0815	UF		23,720	9		3.90	11/14/2023	02/01/2033
BCHICH1215	UF		6,964	9		3.90	11/14/2023	12/01/2032
BCHIFB1021	UF		22,046	6		4.16	11/15/2023	04/01/2029
BCHICE1215	UF		3,572	8		3.64	11/22/2023	12/01/2031
BCHICE1215	UF		10,748	8		3.60	11/23/2023	12/01/2031
BCHIGH1221	UF		133,306	12		3.67	12/01/2023	06/01/2035
BCHICH1215	UF		14,144	9		3.55	12/05/2023	12/01/2032
BCHICG0815	UF		9,137	9		3.31	12/18/2023	08/01/2032
BCHICH1215	UF		9,113	9		3.21	12/20/2023	12/01/2032
Subtotal			870,325

BONO MXN	MXN		31,968	4		TIE (28 days) + 0.85	06/01/2023	06/03/2027
BONO JPY	JPY		35,833	2		0.75	06/08/2023	06/16/2025
Subtotal other currencies			67,801
Total			938,126

113

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

22.

Financial liabilities at amortized cost, continued:

As of December 31, 2024 and 2023, the Bank has not presented defaults in the payment of principal and interest on its debt instruments. Likewise, there have been no breaches of covenants and other commitments associated with the debt instruments issued.

(f)

Other Financial Obligations:

At the end of each year, the composition of other financial obligations as follows:

	2024		2023
	MCh$		MCh$

Other Chilean financial obligations		284,479		339,281
Other financial obligations with the Public sector		—		24
Total		284,479		339,305

23.

Financial instruments of regulatory capital issued:

At the end of each year, this item is composed as follows:

	2024		2023
	MCh$		MCh$
Subordinated bonds
Subordinated bonds with transitory recognition		—		—
Subordinated bonds		1,068,879		1,039,814
Bonds with no fixed term of maturity		—		—
Preferred stock		—		—
Total		1,068,879		1,039,814

Issuances of regulatory capital financial instruments in the year:

During the year ended December 31, 2024 and 2023, no issues of regulatory capital financial instruments have been made.

114

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

23.

Financial instruments of regulatory capital issued, continued:

Changes in regulatory capital financial instruments:

	Subordinated bonds			Bonds with no maturity		Preferred shares
	MCh$			MCh$		MCh$
Balance as of January 1, 2023		1,010,905			—		—
Emissions made		—			—		—
Transaction costs		—			—		—
Transaction costs amortization		—			—		—
Accrued interest		34,903			—		—
Acquisition or redemption by the issuer		—			—		—
Modification of the issuance conditions		—			—		—
Interest and UF indexation payments to the holder		(41,541	)		—		—
Principal payments to the holder		(10,658	)		—		—
Accrued UF indexation		46,205			—		—
Exchange rate differences		—			—		—
Depreciation		—			—		—
Reappraisal		—			—		—
Expiration		—			—		—
Conversion to common shares		—			—		—
Balance as of December 31, 2023		1,039,814			—		—

Balance as of January 1, 2024		1,039,814			—		—
Emissions made		—			—		—
Transaction costs		—			—		—
Transaction costs amortization		—			—		—
Accrued interest		34,551			—		—
Acquisition or redemption by the issuer		—			—		—
Modification of the issuance conditions		—			—		—
Interest and UF indexation payments to the holder		(41,432	)		—		—
Principal payments to the holder		(9,205	)		—		—
Accrued UF indexation		45,151			—		—
Exchange rate differences		—			—		—
Depreciation		—			—		—
Reappraisal		—			—		—
Expiration		—			—		—
Conversion to common shares		—			—		—
Balance as of December 31, 2024		1,068,879			—		—

115

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

23.

Financial instruments of regulatory capital issued, continued:

Below is the detail of the subordinated bonds due as of December 31, 2024 and 2023:

December 2024
Serie	Currency	Issuance currency amount		Interest rate %		Registration date	Maturity date	Balance due MCh$

C1	UF		300,000		7.5	12/06/1999	01/01/2030		4,761
C1	UF		200,000		7.4	12/06/1999	01/01/2030		3,178
C1	UF		530,000		7.1	12/06/1999	01/01/2030		8,472
C1	UF		300,000		7.1	12/06/1999	01/01/2030		4,797
C1	UF		50,000		6.5	12/06/1999	01/01/2030		809
C1	UF		450,000		6.6	12/06/1999	01/01/2030		7,283
D1	UF		2,000,000		3.6	06/20/2002	04/01/2026		10,335
F	UF		1,000,000		5.0	11/28/2008	11/01/2033		37,358
F	UF		1,500,000		5.0	11/28/2008	11/01/2033		56,037
F	UF		759,000		4.5	11/28/2008	11/01/2033		29,365
F	UF		241,000		4.5	11/28/2008	11/01/2033		9,324
F	UF		4,130,000		4.2	11/28/2008	11/01/2033		162,631
F	UF		1,000,000		4.3	11/28/2008	11/01/2033		39,377
F	UF		70,000		4.2	11/28/2008	11/01/2033		2,764
F	UF		4,000,000		3.9	11/28/2008	11/01/2033		162,042
F	UF		2,300,000		3.8	11/28/2008	11/01/2033		93,507
G	UF		600,000		4.0	11/29/2011	11/01/2036		22,697
G	UF		50,000		4.0	11/29/2011	11/01/2036		1,891
G	UF		80,000		3.9	11/29/2011	11/01/2036		3,046
G	UF		450,000		3.9	11/29/2011	11/01/2036		17,149
G	UF		160,000		3.9	11/29/2011	11/01/2036		6,097
G	UF		1,000,000		2.7	11/29/2011	11/01/2036		42,768
G	UF		300,000		2.7	11/29/2011	11/01/2036		12,831
G	UF		1,360,000		2.6	11/29/2011	11/01/2036		58,330
J	UF		1,400,000		1.0	11/29/2011	11/01/2042		77,836
J	UF		1,500,000		1.0	11/29/2011	11/01/2042		83,509
J	UF		1,100,000		1.0	11/29/2011	11/01/2042		61,667
I	UF		900,000		1.0	11/29/2011	11/01/2040		49,018
						Total subordinated bonds due			1,068,879

116

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

23.

Financial instruments of regulatory capital issued, continued:

December 2023
Serie	Currency	Issuance currency amount		Interest rate %		Registration date	Maturity date	Balance due MCh$

C1	UF		300,000		7.5	12/06/1999	01/01/2030		5,211
C1	UF		200,000		7.4	12/06/1999	01/01/2030		3,478
C1	UF		530,000		7.1	12/06/1999	01/01/2030		9,284
C1	UF		300,000		7.1	12/06/1999	01/01/2030		5,258
C1	UF		50,000		6.5	12/06/1999	01/01/2030		889
C1	UF		450,000		6.6	12/06/1999	01/01/2030		8,000
D1	UF		2,000,000		3.6	06/20/2002	04/01/2026		16,207
F	UF		1,000,000		5.0	11/28/2008	11/01/2033		35,658
F	UF		1,500,000		5.0	11/28/2008	11/01/2033		53,488
F	UF		759,000		4.5	11/28/2008	11/01/2033		28,118
F	UF		241,000		4.5	11/28/2008	11/01/2033		8,928
F	UF		4,130,000		4.2	11/28/2008	11/01/2033		155,976
F	UF		1,000,000		4.3	11/28/2008	11/01/2033		37,766
F	UF		70,000		4.2	11/28/2008	11/01/2033		2,652
F	UF		4,000,000		3.9	11/28/2008	11/01/2033		155,816
F	UF		2,300,000		3.8	11/28/2008	11/01/2033		89,943
G	UF		600,000		4.0	11/29/2011	11/01/2036		21,703
G	UF		50,000		4.0	11/29/2011	11/01/2036		1,809
G	UF		80,000		3.9	11/29/2011	11/01/2036		2,914
G	UF		450,000		3.9	11/29/2011	11/01/2036		16,406
G	UF		160,000		3.9	11/29/2011	11/01/2036		5,833
G	UF		1,000,000		2.7	11/29/2011	11/01/2036		41,234
G	UF		300,000		2.7	11/29/2011	11/01/2036		12,371
G	UF		1,360,000		2.6	11/29/2011	11/01/2036		56,249
J	UF		1,400,000		1.0	11/29/2011	11/01/2042		75,690
J	UF		1,500,000		1.0	11/29/2011	11/01/2042		81,211
J	UF		1,100,000		1.0	11/29/2011	11/01/2042		59,989
I	UF		900,000		1.0	11/29/2011	11/01/2040		47,733
						Total subordinated bonds due			1,039,814

117

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

24.

Provisions for contingencies:

(a)

At the end of each year, this item is composed as follows:

	2024		2023
	MCh$		MCh$

Provisions for employee benefit obligations		151,633		154,132
Provisions for obligations of customer loyalty and merit programs		40,621		36,242
Provisions for lawsuits and litigation		1,592		1,173
Provisions for operational risk		907		341
Provisions of a bank branch abroad for profit remittances to its parent company		—		—
Provisions for reestructuring plans		—		—
Other provisions for contingencies		—		264
Total		194,753		192,152

118

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

24.

Provisions for contingencies, continued:

(b)

The following table shows the changes in provisions during the year 2024 and 2023:

	Provisions for employee benefit obligations			Provisions of a bank branch abroad for profit remittances to its parent company		Provisions for reestructuring plans		Provisions for lawsuits and litigation			Provisions for obligations of customer loyalty and merit programs		Provisions for operational risk			Other provisions for contingencies			Total
	MCh$			MCh$		MCh$		MCh$			MCh$		MCh$			MCh$			MCh$

Balances as of January 1, 2023		139,315			—		—		1,790			33,609		1,048			264			176,026
Provisions established		124,183			—		—		604			2,633		142			—			127,562
Provisions used		(109,366	)		—		—		(863	)		—		(729	)		—			(110,958	)
Provisions released		—			—		—		(358	)		—		(120	)		—			(478	)
Balances as of December 31, 2023		154,132			—		—		1,173			36,242		341			264			192,152
Provisions established		118,002			—		—		1,038			4,379		836			—			124,255
Provisions used		(120,501	)		—		—		(482	)		—		(157	)		—			(121,140	)
Provisions released		—			—		—		(137	)		—		(113	)		(264	)		(514	)
Balances as of December 31, 2024		151,633			—		—		1,592			40,621		907			—			194,753

119

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

24.

Provisions for contingencies, continued:

(c)

Provisions for employee benefit obligations:

	2024		2023
	MCh$		MCh$

Provision of short-term employee benefits		143,305		144,455
Provision of benefits to employees for contract termination		8,328		9,677
Provisión of benefits to post-employment employees		—		—
Provision of long-term employee benefits		—		—
Provision of share-based employee benefits		—		—
Provisión for obligations for defined contribution post-employment plans		—		—
Provisión for obligations for post-employment defined benefit plans		—		—
Provision for other employee obligations		—		—
Total		151,633		154,132

(d)

Provision of short-term employee benefits:

(i)

Compliance bonuses provision:

	2024			2023
	MCh$			MCh$

Balances as of January 1		71,102			73,204
Net provisions established		54,087			58,135
Provisions used		(56,833	)		(60,237	)
Total		68,356			71,102

(ii)

Vacation provision:

	2024			2023
	MCh$			MCh$

Balances as of January 1		43,257			41,257
Net provisions established		8,433			10,250
Provisions used		(8,866	)		(8,250	)
Total		42,824			43,257

120

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

24.

Provisions for contingencies, continued;

(d)

Provision of short-term employee benefits, continued:

(iii)

Provision of other benefits to personnel:

	2024			2023
	MCh$			MCh$

Balances as of January 1		30,096			14,119
Net provisions established		54,571			54,366
Provisions used		(52,542	)		(38,389	)
Total		32,125			30,096

(e)

Provision of benefits to employees for contract termination:

(i)

Changes of the provision for employee benefits due to the termination of the employment contract:

	2024			2023
	MCh$			MCh$

Present value of the obligations at the beginning of the year		9,677			10,735
Increase in provision		586			1,357
Benefit paid		(1,820	)		(2,490	)
Effect of change in actuarial factors		(115	)		75
Total		8,328			9,677

121

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

24.

Provisions for contingencies, continued;

(e)

Provision of benefits to employees for contract termination, continued:

(ii)

Net benefits expenses:

	2024			2023
	MCh$			MCh$

Increase (decrease) in provisions		137			881
Interest cost of benefits obligations		449			476
Effect of change in actuarial factors		(115	)		75
Net benefit expenses		471			1,432

(iii)

Factors used in the calculation of the provision:

The main assumptions used in the determination of severance indemnity obligations for the Bank’s plan are shown below:

	December 31, 2024		December 31, 2023
	%		%

Discount rate		5.71		5.77
Salary increase rate		4.50		5.60
Payment probability		99.99		99.99

The most recent actuarial valuation of the staff severance indemnities provision was carried out during the third quarter of 2024.

(f)

Employee benefits share-based provision:

As of December 31, 2024 and 2023, the Bank and its subsidiaries do not have a stock-based compensation plan.

122

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

25.

Provision for dividends, interests and reappraisal of financial instruments of regulatory capital issued:

(a)

The item detail is as follows:

	2024		2023
	MCh$		MCh$

Provisions for dividends		597,228		611,949
Provisions for payment of interest on bonds with no fixed maturity date		—		—
Provision for revaluation of bonds without a fixed term of maturity		—		—
Total		597,228		611,949

(b)

The changes at the end of each year are as follows:

	Provisions for dividends			Provisions for payment of interest on bonds with no fixed maturity date		Provision for revaluation of bonds without a fixed term of maturity		Total
	MCh$			MCh$		MCh$		MCh$

Balances as of January 1, 2023		520,158			—		—		520,158
Provisions established		611,949			—		—		611,949
Provisions used		(520,158	)		—		—		(520,158	)
Provisions released		—			—		—		—
Balances as of December 31, 2023		611,949			—		—		611,949
Provisions established		597,228			—		—		597,228
Provisions used		(611,949	)		—		—		(611,949	)
Provisions released		—			—		—		—
Balances as of December 31, 2024		597,228			—		—		597,228

123

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

26.

Special provisions for credit risk:

At the end of each year, this item is composed as follows:

	2024		2023
	MCh$		MCh$

Additional loan provisions		700,252		700,252
Provisions for credit risk for contingent loans (*)		67,537		61,227
Provisions for country risk for transactions with debtors with residence abroad		6,395		7,668
Special provisions for loans abroad		—		—
Provisions for adjustments to the minimum provision required for normal portfolio with individual evaluation		—		—
Provisions constituted by credit risk as a result of additional prudential requirements		—		—
Total		774,184		769,147

(*)

The changes of provisions for credit risk for contingent loans is disclosed in Note No. 13 letter f).

The changes of provisions for special credit risk is as follows:

	Additional loan provisions		Provisions for credit risk for contingent loans		Provisions for country risk for transactions with debtors with residence abroad			Total
	MCh$		MCh$		MCh$			MCh$
Balances as of January 1, 2023		700,252		57,377		8,137			765,766
Provisions established		—		3,725		—			3,725
Provisions used		—		—		—			—
Provisions released		—		—		(469	)		(469	)
Foreign exchange differences		—		125		—			125
Balances as of December 31, 2023		700,252		61,227		7,668			769,147
Provisions established		—		4,883		—			4,883
Provisions used		—		—		—			—
Provisions released		—		—		(1,273	)		(1,273	)
Foreign exchange differences		—		1,427		—			1,427
Balances as of December 31, 2024		700,252		67,537		6,395			774,184

124

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

27.

Other Liabilities:

At the end of each year, this item is composed as follows:

	2024		2023
	MCh$		MCh$

Accounts payable to third parties		425,733		342,312
Obligations for mortgage loans granted to be remit to other banks and/or real estate companies		362,021		343,546
Creditors for intermediation of financial instruments		193,171		252,038
Cash guarantees received for derivative financial transactions		176,520		172,634
Liability for income from usual activities from contracts with customers		39,783		43,877
Agreed dividends payable		13,467		12,075
VAT debit		4,077		9,286
Securities to be settled		3,633		10,347
Outstanding transactions		1,532		1,644
Other cash guarantees received		483		456
Other liabilities		34,992		30,523
Total		1,255,412		1,218,738

125

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity:

(a)

Capital:

(i)

Authorized, subscribed and paid shares:

As of December 31, 2024, the paid-in capital of Banco de Chile is represented by 101,017,081,114 registered shares (101,017,081,114 shares as of December 31, 2023), with no par value, subscribed and fully paid.

	As of December 31, 2024
Corporate Name or Shareholders’s name	Number of Shares		% of Equity Holding

LQ Inversiones Financieras S.A.		46,815,289,329		46.344	%
Banco de Chile on behalf of State Street		6,125,765,969		6.064	%
Banchile Corredores de Bolsa S.A		5,123,539,720		5.072	%
Banco Santander on behalf of foreign investors		5,080,833,862		5.030	%
Inversiones LQ-SM Limitada		4,854,988,014		4.806	%
JP Morgan Chase Bank		3,041,703,508		3.011	%
Banco de Chile on behalf of non-resident third parties		2,666,777,747		2.640	%
Banco Santander Chile		1,941,976,163		1.922	%
Ever Chile SPA		1,888,369,814		1.869	%
Ever 1 BAE SPA		1,166,584,950		1.155	%
Larraín Vial S.A. Corredora de Bolsa		1,042,343,304		1.032	%
Banco de Chile on behalf of Citibank New York		1,038,850,995		1.028	%
BCI Corredores de Bolsa S.A.		989,711,426		0.980	%
Inversiones Avenida Borgoño Limitada		728,439,279		0.721	%
Santander Corredores de Bolsa Limitada		581,788,686		0.576	%
A.F.P Habitat S.A. for A Fund		527,598,687		0.522	%
Valores Security S.A. Corredores de Bolsa		516,192,449		0.511	%
A.F.P Cuprum S.A. for A Fund		492,665,765		0.488	%
Inversiones CDP SPA		487,744,912		0.483	%
BTG Pactual Chile S.A. Corredores de Bolsa		463,503,644		0.459	%
Subtotal		85,574,668,223		84.713	%
Other shareholders		15,442,412,891		15.287	%
Total		101,017,081,114		100.000	%

126

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity, continued:

(a)

Capital, continued:

(i)

Authorized, subscribed and paid shares, continued:

	As of December 31, 2023
Corporate Name or Shareholders’s name	Number of Shares		% of Equity Holding

LQ Inversiones Financieras S.A.		46,815,289,329		46.344	%
Banco de Chile on behalf of State Street		5,912,541,950		5.853	%
Banco Santander on behalf of foreign investors		5,218,796,247		5.166	%
Banchile Corredores de Bolsa S.A. on behalf of third parties		5,093,108,613		5.042	%
Inversiones LQ-SM Limitada		4,854,988,014		4.806	%
Banco de Chile on behalf of non-resident third parties		4,366,453,313		4.322	%
Banco de Chile on behalf of Citibank New York		1,928,215,358		1.909	%
Ever Chile SPA		1,888,369,814		1.869	%
JP Morgan Chase Bank		1,540,646,308		1.525	%
Inversiones Avenida Borgoño SPA		1,190,565,316		1.179	%
Ever 1 BAE SPA		1,166,584,950		1.155	%
Banco Santander Chile		1,036,254,726		1.026	%
Larraín Vial S.A. Corredora de Bolsa		1,031,817,268		1.021	%
A.F.P Habitat S.A. for A Fund		599,181,211		0.593	%
BCI Corredores de Bolsa S.A.		560,782,315		0.555	%
Valores Security S.A. Corredores de Bolsa		516,827,332		0.512	%
Inversiones CDP SPA		487,744,912		0.483	%
A.F.P Cuprum S.A. for A Fund		486,057,153		0.481	%
Santander Corredores de Bolsa Limitada		477,871,060		0.473	%
BTG Pactual Chile S.A. Corredores de Bolsa		456,328,957		0.452	%
Subtotal		85,628,424,146		84.766	%
Other shareholders		15,388,656,968		15.234	%
Total		101,017,081,114		100.000	%

127

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity, continued:

(a)

Capital, continued:

(ii)

The following table shows the changes in shares from December 31, 2023 to December 31, 2024:

	Total
	Ordinary Shares

Total shares as of December 31, 2023		101,017,081,114

Total shares as of December 31, 2024		101,017,081,114

(b)

Approval and payment of dividends:

At the Bank Ordinary Shareholders’ Meeting held on March 28, 2024 it was approved the distribution and payment of dividend No. 212 of Ch$8.07716286860 per share of the Banco de Chile, with charge to the net distributable income for the year 2023. The dividends paid in the in the year 2024 amounted to Ch$815,932 million.

At the Bank Ordinary Shareholders’ Meeting held on March 23, 2023 it was approved the distribution and payment of dividend No. 211 of Ch$8.58200773490 per share of the Banco de Chile, with charge to the net distributable income for the year 2022. The dividends paid in the in the year 2023 amounted to Ch$866,929 million.

(c)

Provision for minimum dividends:

The Board of Directors of Banco de Chile agreed for the purposes of minimum dividends, to establish a provision of 60% of the net income resulting from reducing or adding to the net income for the corresponding year, the value effect of the monetary unit of paid capital and reserves, as a result of any change in the Consumer Price Index (CPI) between the month prior to the current month and the month of November of the previous year. The amount to be reduced of the liquid income for the year ended as of December 31, 2024 amounted to Ch$212,012 million (Ch$223,720 million as of December 31, 2023).

As indicated, as of December 31, 2024, the amount of the net income determined in accordance with the preceding paragraph is equivalent to Ch$995,380 million (Ch$1,019,914 million as of December 31, 2023). Consequently, the Bank recorded a provision for minimum dividends under “Provision for dividends, interests and reappraisal of financial instruments of regulatory capital issued” as of December 31, for an amount of Ch$597,228 million (Ch$611,949 million in December 2023), which reflects as a counterpart an equity reduction for the same amount in the item “Retained earnings”.

128

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity, continued:

(d)

Earnings per share:

(i)

Basic earnings per share:

Basic earnings per share are determined by dividing the net income attributable to the Bank ordinary equity holders in a year between the weighted average number of shares outstanding during that year, excluding the average number of own shares held throughout the year.

(ii)

Diluted earnings per share:

In order to calculate the diluted earnings per share, both the amount of income attributable to common shareholders and the weighted average number of shares outstanding, net of own shares, must be adjusted for all the inherent dilutive effects to the potential common shares (stock options, warrants and convertible debt).

Accordingly, the basic and diluted earnings per share as of December 31, 2024 and 2023 were determined as follows:

	2024		2023
Basic earnings per share:
Net profits attributable to ordinary equity holders of the bank (in million of Chilean pesos)		1,207,392		1,243,634
Weighted average number of ordinary shares		101,017,081,114		101,017,081,114
Earning per shares (in Chilean pesos)		11.95		12.31

Diluted earnings per share:
Net profits attributable to ordinary equity holders of the bank (in million of Chilean pesos)		1,207,392		1,243,634
Weighted average number of ordinary shares		101,017,081,114		101,017,081,114
Assumed conversion of convertible debt		—		—
Adjusted number of shares		101,017,081,114		101,017,081,114
Diluted earnings per share (in Chilean pesos)		11.95		12.31

As of December 31, 2024 and 2023, the Bank does not have instruments that generate dilutive effects.

129

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity, continued:

(e)

Other comprehensive income:

Below is the composition and changes of accumulated other comprehensive income as of December 31, 2024 and 2023:

	Elements that will not be reclassified in profit or loss											Elements that can be reclassified in profit or loss
	New measurements of net defined benefit liability and actuarial results for other employee benefit plans			Fair value changes of equity instruments designated as at fair value through other comprehensive income			Income tax			Subtotal		Fair value changes of financial assets at fair value through other comprehensive income			Cash flow accounting hedge			Participation in other comprehensive income of entities registered under the equity method			Income tax			Subtotal			Total
	MCh$			MCh$			MCh$			MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$

Opening balances as of January 1, 2023		(338	)		3,790			(932	)		2,520		268			(103,782	)		(190	)		31,382			(72,322	)		(69,802	)
Other comprehensive income for the year		(75	)		5,878			(1,567	)		4,236		8,874			113,183			116			(32,365	)		89,808			94,044
Balances as of December 31, 2023		(413	)		9,668			(2,499	)		6,756		9,142			9,401			(74	)		(983	)		17,486			24,242

Opening balances as of January 1, 2024		(413	)		9,668			(2,499	)		6,756		9,142			9,401			(74	)		(983	)		17,486			24,242
Other comprehensive income for the year		115			(212	)		893			796		(4,664	)		(21,798	)		26			5,175			(21,261	)		(20,465	)
Balances as of December 31, 2024		(298	)		9,456			(1,606	)		7,552		4,478			(12,397	)		(48	)		4,192			(3,775	)		3,777

130

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

28.

Equity, continued:

(f)

Retained earnings from previous years:

During the year 2024, the Ordinary Shareholders Meeting of Banco de Chile agreed to deduct and withhold from the year 2023 liquid income, an amount equivalent to the value effect of the monetary unit of paid capital and reserves according to the variation in the Consumer Price Index, which occurred between November 2022 and November 2023, amounting to Ch$223,720 million. Additionally, the board determined to retain 20% of the distributable net profit, equivalent to Ch$203,983 million.

29.

Contingencies and Commitments:

(a)

The Bank and its subsidiaries have exposures associated with contingent loans and other liabilities according to the following detail:

(a.1)

Contingent loans:

	2024		2023
	MCh$		MCh$
Guarantees and sureties
Guarantees and sureties in chilean currency		—		—
Guarantees and sureties in foreign currency		336,737		351,531

Letters of credit for goods circulation operations		442,216		350,604

Debt purchase commitments in local currency abroad		—		—

Transactions related to contingent events
Transactions related to contingent events in chilean currency		2,544,288		2,209,109
Transactions related to contingent events in foreign currency		580,338		431,188

Undrawn credit lines with immediate termination
Balance of lines of credit and agreed overdraft in current account – commercial loans		1,642,163		1,581,711
Balance of lines of credit on credit card – commercial loans		359,638		317,560
Balance of lines of credit and agreed overdraft in current account – consumer loans		1,497,076		1,476,241
Balance of lines of credit on credit card – consumer loans		7,626,423		6,708,946
Balance of lines of credit and agreed overdraft in current account – due from banks loans		—		—

Undrawn credit lines		—		—

Other commitments
Credits for higher studies Law No. 20,027 (CAE)		—		—
Other irrevocable credit commitments		51,889		120,545

Other credit commitments		—		—

Total		15,080,768		13,547,435

131

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

29.

Contingencies and Commitments, continued:

(a.2)

Responsibilities assumed to meet customer needs:

	2024		2023
	MCh$		MCh$
Transactions on behalf of third parties
Collections		214,446		176,146
Placement or sale of financial instruments		—		—
Transferred financial assets managed by the bank		—		—
Third-party resources managed by the bank		1,147,660		921,105
Subtotal		1,362,106		1,097,251

Securities custody
Securities safekept by a banking subsidiary		7,443,549		6,267,729
Securities safekept by the Bank		3,318,810		3,133,770
Securities safekept deposited in another entity		19,509,831		17,238,292
Securities issued by the bank		—		—
Subtotal		30,272,190		26,639,791

Total		31,634,296		27,737,042

(b)

Lawsuits and legal proceedings:

(b.1)

Normal judicial contingencies in the industry:

At the date of issuance of these Consolidated Financial Statements, there are legal actions filed against the Bank related with the ordinary course operations. As of December 31, 2024, the Bank maintain provisions for judicial contingencies amounting to Ch$1,592 million (Ch$1,173 million as of December 2023), which are part of the item “Provisions for contingencies” in the Statement of Financial Position.

The estimated end dates of the respective legal contingencies are as follows:

	As of December 31, 2024
	2025		2026		2027		2028		2029		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Legal contingencies		1,101		491		—		—		—		1,592

(b.2)

Contingencies for significant lawsuits in courts:

As of December 31, 2024 and 2023, there are not significant lawsuits in court that affect or may affect these Consolidated Financial Statements.

132

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

29.

Contingencies and Commitments, continued:

(c)

Guarantees granted by operations:

In subsidiary Banchile Administradora General de Fondos S.A.:

In compliance with Article No, 12 of Law No. 20,712, Banchile Administradora General de Fondos S.A., has designated Banco de Chile as the representative of the beneficiaries of the guarantees it has established, and in such role the Bank has issued bank guarantees totaling UF 3,445,900 maturing January 8, 2025 (UF 4,153,500, maturing on January 6, 2023). The subsidiary took a policy with Mapfre Seguros Generales S.A. for the Real State Funds by a guaranteed amount of UF 858,000.

As of December 31, 2024 and 2023, the Bank has not guaranteed mutual funds.

ii.

In subsidiary Banchile Corredores de Bolsa S.A.:

For the purposes of ensuring correct and complete compliance with all of its obligations as broker-dealer entity, in conformity with the provisions from Article 30 and subsequent of Law No. 18,045 on Securities Markets, the subsidiary established a guarantee in an insurance policy for UF 20,000, insured by Mapfre Seguros Generales S.A., that matures April 22, 2026, whereby the Securities Exchange of the Santiago Stock Exchange was appointed as the subsidiary’s creditor representative.

133

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

29.

Contingencies and Commitments, continued:

(c)

Guarantees granted by operations, continued:

	2024		2023
Guarantees:	MCh$		MCh$
Shares received as collateral for simultaneous operations:
Santiago Securities Exchange, Stock Exchange		9,171		17,070
Electronic Chilean Securities Exchange, Stock Exchange		32,024		11,432

Fixed income securities delivered to guarantee CCLV system:
Santiago Securities Exchange, Stock Exchange		7,843		7,820

Fixed income securities as collateral for the Santiago Stock Exchange		2,148		2,142

Shares delivered to guarantee equity lending and short-selling:
Santiago Securities Exchange, Stock Exchange		4,744		2,350

Cash guarantees received for operations with derivatives		3,931		1,062
Cash guarantees for operations with derivatives		4,043		6,142

Equity securities received for operations with derivatives:
Electronic Chilean Securities Exchange, Stock Exchange		101		189
Depósito Central de Valores S.A.		2,227		276

Total		66,232		48,483

In conformity with the internal regulation of the stock exchanges in which it participates, and for the purpose of ensuring its proper performance, the subsidiary Corredores de Bolsa S.A maintains in favor of the Santiago Stock Exchange a guarantee in fixed income financial instruments equivalent to Ch$2,148 million. It also maintains a pledge in favor of the Electronic Stock Exchange for three hundred thousand shares of said institution.

Banchile Corredores de Bolsa S.A. keeps an insurance policy current with Chubb Seguros Chile S.A. that expires June 30, 2025, this considers matters of employee fidelity, physical losses, falsification or adulteration, and currency fraud with a coverage amount equivalent to US$20,000,000.

It also provided a bank guarantee in the amount of UF 317,900 for the benefits of investors in portfolio management contracts. This bank guarantee is revaluated in UF to fixed term, non-endorsable and has a maturity date of January 9, 2025.

It also provided a cash guarantee in the amount of US$122,494.32 for the purpose of complying with the obligations to Pershing, for any operations conducted through that broker, additionally, there are US$1,205,737.56 for variable income operations.

134

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

29.

Contingencies and Commitments, continued:

(c)

Guarantees granted by operations, continued:

A guarantee corresponding to UF 10,000 has been constituted, to guarantee compliance with the investment portfolio management service contract. Said guarantee corresponds to a non-endorsable fixed-term readjustable bond in UF issued by Banco de Chile with validity until January 27, 2026.

iii.

In subsidiary Banchile Corredores de Seguros Ltda.:

According to established in article 58, letter D of D.F.L. 251, as of December 31, 2024 the entity maintains two insurance policies with effect from April 15, 2024 to April 14, 2025 which protect it against of potential damages caused by infractions of the law, regulations and complementary rules that regulate insurance brokers, especially when the non-compliance comes from acts, errors or omissions of the broker, its representatives, agents or dependents that participate in the intermediation.

The policies contracted are:

Matter insured	Amount Insured (UF)

Errors and omissions liability policy		500
Civil liability policy		60,000

(d)

Exempt Resolution No. 270 dated October 30, 2014, the Superintendency of Securities and Insurance (current Commission for the Financial Market) imposed a fine of UF 50,000 to Banchile Corredores de Bolsa S.A. for violations of the second paragraph of article 53 of the Securities Market Law, said company filed a claim with the competent Civil Court requesting the annulment of the fine. On December 10, 2019, a judgement in the case was issued reducing the fine to the amount of UF 7,500, which was confirmed in the second instance by the Illustrious Court of Appeals of Santiago. The intervening parties filed cassation appeals in form and substance before the Supreme Court against the sentence in second instance. On August 13, 2024 the Supreme Court ordered the hearing of the case, which is pending as of this date.

The company has not made provisions considering that the Bank’s legal advisors in charge of the procedure estimate that there are solid grounds that the claim filed by Banchile Corredores de Bolsa S.A. can be accepted.

135

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

30.

Interest Revenue and Expenses:

(a)

At the end of the year, the summary of interest is as follows:

	2024			2023
	MCh$			MCh$

Interest revenue		2,919,967			3,181,624
Interest expenses		(1,138,312	)		(1,634,708	)
Total net interest income		1,781,655			1,546,916

(b)

The composition of interest revenue is as follows:

	2024			2023
	MCh$			MCh$

Financial assets at amortized cost:
Rights from resale agreements and securities lending		4,601			5,984
Debt financial instruments		50,831			21,605
Loans and advances to Banks		73,707			169,594
Commercial loans		1,353,441			1,474,060
Residential mortgage loans		410,896			367,471
Consumer Loans		819,026			784,325
Other financial instruments		71,561			62,137
Financial assets at fair value through other comprehensive income:
Debt financial instruments		169,950			327,081
Other financial instruments		—			—
Income of accounting hedges of interest rate risk		(34,046	)		(30,633	)
Total		2,919,967			3,181,624

(b.1)

At the end of the year, the stock of interest not recognized in income is as follows:

	2024		2023
	MCh$		MCh$

Commercial loans		38,326		35,667
Residential mortgage loans		6,513		3,911
Consumer Loans		3,673		4,473
Total		48,512		44,051

136

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

30.

Interest Revenue and Expenses, continued:

(c)

The composition of interest expenses is as follows:

	2024			2023
	MCh$			MCh$
Financial liabilities at amortized cost:
Current accounts and other demand deposits		1,186			1,343
Saving accounts and time deposits		810,799			1,308,575
Obligations by repurchase agreements and securities lending		9,177			15,183
Borrowings from financial institutions		71,727			64,603
Debt financial instruments issued		260,203			249,438
Other financial obligations		—			—
Lease liabilities		2,381			1,980
Financial instruments of regulatory capital issued		34,551			34,903
Income of accounting hedges of interest rate risk		(51,712	)		(41,317	)
Total		1,138,312			1,634,708

(d)

As of December 31, 2024 and 2023, the Bank uses cross currency and interest rate swaps to hedge its position on changes on the fair value of corporate bonds and commercial loans and cross currency swaps to hedge the risk of variability of obligations flows with foreign banks and bonds issued in foreign currency

	2024									2023
	Income			Expense			Total			Income			Expense			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Gain from fair value accounting hedges		—			—			—			—			—			—
Loss from fair value accounting hedges		—			—			—			—			—			—
Gain from cash flow accounting hedges		186,951			266,878			453,829			274,897			338,551			613,448
Loss from cash flow accounting hedges		(220,997	)		(215,166	)		(436,163	)		(305,530	)		(297,234	)		(602,764	)
Net gain on hedge items		—			—			—			—			—			—
Total		(34,046	)		51,712			17,666			(30,633	)		41,317			10,684

137

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

31.

UF indexation revenue and expenses:

(a)

At the end of the year, the summary of UF indexation is as follows:

	2024			2023
	MCh$			MCh$

UF indexation revenue		829,188			832,909
UF indexation expenses		(469,992	)		(489,165	)
Total net income from UF indexation		359,196			343,744

(b)

The composition of UF indexation revenue is as follows

	2024			2023
	MCh$			MCh$

Financial assets at amortized cost:
Rights from resale agreements and securities lending		—			—
Debt financial instruments		26,333			27,392
Loans and advances to Banks		—			—
Commercial loans		318,858			320,175
Residential mortgage loans		545,517			546,876
Consumer Loans		1,322			1,897
Other financial instruments		3,453			2,843
Financial assets at fair value through other comprehensive income:
Debt financial instruments		24,896			28,397
Other financial instruments		—			—
Income of accounting hedges of UF, IVP, IPC indexation risk		(91,191	)		(94,671	)
Total		829,188			832,909

(b.1)

At the end of the year, the stock of UF indexation not recognized in results is as follows:

	2024		2023
	MCh$		MCh$

Commercial loans		4,397		4,771
Residential mortgage loans		8,209		6,401
Consumer Loans		10		15
Total		12,616		11,187

138

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

31.

UF indexation revenue and expenses, continued:

(c)

The composition of UF indexation expenses is as follows:

	2024		2023
	MCh$		MCh$
Financial liabilities at amortized cost:
Current accounts and other demand deposits		19,956		16,677
Saving accounts and time deposits		81,947		96,446
Obligations by repurchase agreements and securities lending		—		—
Borrowings from financial institutions		—		—
Debt financial instruments issued		322,938		329,837
Other financial obligations		—		—
Financial instruments of regulatory capital issued		45,151		46,205
Income of accounting hedges of UF, IVP, IPC indexation risk		—		—
Total		469,992		489,165

139

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

31.

UF indexation revenue and expenses, continued:

(d)

As of December 31, 2024 and 2023, the Bank uses cross currency swaps to hedge the risk of variability of obligations flows with foreign banks and bonds issued in foreign currency.

	2024								2023
	Income			Expense		Total			Income			Expense		Total
	MCh$			MCh$		MCh$			MCh$			MCh$		MCh$

Gain from fair value accounting hedges		—			—		—			—			—		—
Loss from fair value accounting hedges		—			—		—			—			—		—
Gain from cash flow accounting hedges		3,087			—		3,087			2,308			—		2,308
Loss from cash flow accounting hedges		(94,278	)		—		(94,278	)		(96,979	)		—		(96,979	)
Net gain on hedge items		—			—		—			—			—		—
Total		(91,191	)		—		(91,191	)		(94,671	)		—		(94,671	)

140

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

32.	Income and Expenses from commissions:

The income and expenses for commissions that are shown in the Consolidated Statement of Income for the year is as following:

	2024		2023
	MCh$		MCh$
Income from commissions and services rendered
Comissions from card services		231,343		238,523
Remuneration from administration of mutual funds, investment funds or others		142,311		118,170
Comissions from collections and payments		80,326		81,043
Comissions from portfolio management		68,969		62,218
Comissions from guarantees and letters of credit		41,923		37,399
Brand use agreement		29,082		32,655
Insurance not related to the granting of credits to natural persons		25,303		24,772
Use of distribution channel		24,670		31,184
Comissions from trading and securities management		19,653		17,287
Comissions from credit prepayments		15,575		11,246
Insurance related to the granting of credits to natural persons		11,942		15,428
Insurance not related to the granting of credits to legal entities		5,144		7,317
Comissions from lines of credit and current account overdrafts		4,978		4,958
Financial advisory services		2,688		5,274
Insurance related to the granting of credits to legal entities		2,007		2,098
Comissions from factoring operations services		1,313		1,380
Loan commissions with letters of credit		68		106
Other commission earned		25,627		23,322
Total		732,922		714,380

Expenses from commissions and services received
Commissions from card transactions		59,763		54,981
Expenses from obligations of loyalty and merit card customers programs		39,518		39,731
Interbank transactions		39,471		50,734
Commissions from use of card brands license		8,529		9,115
Comissions from securities transaction		5,293		4,995
Collections and payments		4,120		4,279
Other commissions from services received		4,345		4,615
Total		161,039		168,450

141

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

33.	Net Financial income (expense):

(a)

The amount of net financial income (expense) shown in the Consolidated Income Statement for the year corresponds to the following concepts:

	2024			2023
	MCh$			MCh$
Financial result from:
Financial assets held for trading at fair value through profit or loss:
Financial derivative contracts		3,646,894			4,861,431
Debt Financial Instruments		128,401			315,119
Other financial instruments		25,961			25,986

Financial liabilities held for trading at fair value through profit or loss:
Financial derivative contracts		(3,698,606	)		(4,850,496	)
Other financial instruments		(349	)		(688	)
Subtotal		102,301			351,352

Non-trading financial assets mandatorily measured at fair value through profit or loss:
Debt Financial Instruments		—			—
Other financial instruments		—			—

Financial assets designated as at fair value through profit or loss:
Debt Financial Instruments		—			—
Other financial instruments		—			—

Financial liabilities designated as at fair value through profit or loss:
Current accounts and other demand deposits and savings accounts and other time deposits		—			—
Debt instruments issued		—			—
Others		—			—

Derecognition of financial assets and liabilities at amortized cost and financial assets at fair value through other comprehensive income:
Financial assets at amortized cost		239			342
Financial assets at fair value through other comprehensive income		8,050			(4,522	)
Financial liabilities at amortized cost		—			(1	)
Financial instruments of regulatory capital issued		—			—
Subtotal		8,289			(4,181	)

Exchange, indexation and accounting hedging of foreign currency:
Gain (loss) from foreign currency exchange		(29,561	)		36,779
Gain (loss) from indexation for exchange rate		20,067			4,148
Net gain (loss) from derivatives in accounting hedges of foreign currency risk		174,091			79,667
Subtotal		164,597			120,594

Reclassification of financial assets for changes to business models:
From financial assets at amortized cost to financial assets held for trading at fair value through profit or loss		—			—
From financial assets at fair value through other comprehensive income to financial assets held for trading at fair value through profit or loss		—			—

Modifications of financial assets and liabilities:
Financial assets at amortized cost		—			—
Financial assets at fair value through other comprehensive income		—			—
Financial liabilities at amortized cost		—			—
Lease liabilities		—			—
Financial instruments of regulatory capital issued		—			—

Ineffective accounting hedges:
Gain (loss) from ineffective cash flow accounting hedges		—			—
Gain (loss) from ineffective accounting hedges of net investment abroad		—			—

Other type of accounting hedges:
Hedges of other types of financial assets		—			—

Total		275,187			467,765

142

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

33.

Net Financial income (expense), continued:

(b)

Below is a detail of the income (expense) associated with the changes of provisions constituted for credit risk related to loans and contingent loans denominated in foreign currency, which is reflected in “Exchange, indexation and accounting hedging of foreign currency”.

	2024			2023
	MCh$			MCh$

Loans and advances to Banks		(114	)		(13	)
Commercial loans		(10,208	)		(2,357	)
Residential mortgage loans		—			—
Consumer loans		(130	)		(33	)
Contingent loans		(1,427	)		(125	)
Total		(11,879	)		(2,528	)

34.

Income attributable to investments in other companies:

The income obtained from investments in companies detailed in note No. 14 corresponds to the following:

Company	Shareholder	2024		2023
		MCh$		MCh$

Income attributable to investments in other companies:

Associates
Transbank S.A.	Banco de Chile		2,575		7,014
Centro de Compensación Automatizado S.A.	Banco de Chile		1,875		1,686
Redbanc S.A.	Banco de Chile		663		288
Administrador Financiero de Transantiago S.A.	Banco de Chile		610		723
Sociedad Interbancaria de Depósitos de Valores S.A.	Banco de Chile		483		460
Servicios de Infraestructura de Mercado OTC S.A.	Banco de Chile		151		131
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.	Banco de Chile		145		86
Subtotal Associates			6,502		10,388

Joint Ventures
Servipag Ltda.	Banco de Chile		1,676		2,201
Artikos Chile S.A.(*)	Banco de Chile		552		820
Subtotal Joint Ventures			2,228		3,021
Subtotal			8,730		13,409

Minority Investments
Holding Bursátil Regional S.A. (**)	Banchile Corredores de Bolsa		242		—
Banco Latinoamericano de Comercio Exterior S.A. (Bladex)	Banco de Chile		134		50
Bolsa Electrónica de Chile, Bolsa de Valores	Banchile Corredores de Bolsa		18		19
CCLV Contraparte Central S.A.	Banchile Corredores de Bolsa		3		9
Sociedad de Infraestructuras de Mercado S.A. (**)	Banchile Corredores de Bolsa		—		895
Bolsa de Comercio de Santiago, Bolsa de Valores (**)	Banchile Corredores de Bolsa		—		50
Subtotal Minority Investments			397		1,023
Total			9,127		14,432

Income from disposal of shares in Companies:

Joint Ventures
Artikos Chile S.A. (***)	Banco de Chile		7,925		—

Total Investments in other companies			17,052		14,432

(*)

See Note No. 5 Relevant Events, letter (n)

(**)

See Note No. 14 Investments in other companies, letter (a).

(***)

See Note No. 5 Relevant Events, letter (q).

143

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

35.

Result from non-current assets and disposal groups held for sale not admissible as discontinued operations:

The composition of the results of non-current assets and disposal groups not eligible as discontinued operations during the years 2024 and 2023 is as follows:

	2024			2023
	MCh$			MCh$

Net income from assets received in payment or adjudicated in judicial auction
Gain (loss) on sale of assets received in lieu of payment or foreclosed at judicial auction		8,698			5,284
Other income from assets received in payment or foreclosed at judicial auction		57			53
Provisions for adjustments to net realizable value of assets received in lieu of payment or foreclosed at judicial auction		(1,939	)		(1,070	)
Charge-off assets received in lieu of payment or foreclosed at judicial auction		(14,942	)		(5,252	)
Expenses to maintain assets received in lieu of payment or foreclosed at judicial auction		(1,382	)		(1,165	)
Non-current assets held for sale
Investments in other companies		—			—
Intangible assets		—			—
Property and equipment		938			2,971
Assets for recovery of assets transferred in financial leasing operations		2,105			2,325
Other assets		—			—
Disposal groups held for sale		—			—
Total		(6,465	)		3,146

36.	Other operating Income and Expenses:

During the years 2024 and 2023, the Bank and its subsidiaries present other operating income, according to the following:

	2024		2023
	MCh$		MCh$

Expense recovery		26,179		26,310
Revaluation of prepaid monthly payments		9,771		9,146
Revaluation of tax refunds from previous years		8,451		6,905
Income from investment properties		7,147		6,793
Foreign trade income		102		98
Release of provisions not related to credit risk		—		23,355
Others income		127		332
Total		51,777		72,939

144

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

36.	Other operating Income and Expenses: continued:

During the years 2024 and 2023, the Bank and its subsidiaries present other operating expenses, according to the following:

	2024			2023
	MCh$			MCh$

Write-offs for operating risks		29,407			30,473
Expenses for credit operations of financial leasing		6,976			4,071
Insurance premiums expense to cover operational risk events		6,275			5,779
Legal expenses and trials		2,847			3,063
Card administration		2,209			606
(Release) expense of provisions for operational risk		558			(706	)
Provisions for trials and litigation		419			(617	)
Write-offs for commercial decisions		407			290
Life insurance		343			275
Valuation expense		256			250
Renegotiated loan insurance premium		235			290
Expenses for charge-off leased assets recoveries		195			493
Provision for pending operations (90 days)		(124	)		(117	)
Expense recovery from operational risk events		(14,314	)		(9,216	)
Other expenses		350			1,156
Total		36,039			36,090

145

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

37.	Expenses from salaries and employee benefits:

The composition of the expense for employee benefit obligations during the years 2024 and 2023 is as follows:

	2024		2023
	MCh$		MCh$

Expenses for short-term employee benefit		528,466		534,177
Expenses for employee benefits due to termination of employment contract		42,125		35,391
Training expenses		3,440		3,751
Expenses for nursery and kindergarten		1,618		1,513
Other personnel expenses		6,898		7,852
Total		582,547		582,684

146

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

38.	Administrative expenses:

This item is composed as follows:

	2024		2023
	MCh$		MCh$
General administrative expenses
Information technology and communications		157,216		142,731
Maintenance and repair of property and equipment		51,606		49,699
Surveillance and securities transport services		11,651		11,265
External advisory services and professional services fees		11,252		10,326
Office supplies		8,497		8,724
External financial information and fraud prevention service		8,129		7,483
Postal box, mail, postage and home delivery services		6,325		4,839
Energy, heating and other utilities		6,132		5,513
Legal and notary expenses		5,799		5,433
External service of custody of documentation		4,664		3,943
Other expenses of obligations for lease contracts		4,200		4,431
Insurance premiums except to cover operational risk events		4,142		4,167
Expenses for short-term leases		3,658		3,860
Donations		3,249		3,251
Representation and travel expenses		3,191		3,249
Card embossing service		2,084		1,756
Fees for other technical reports		1,063		1,034
Fees for review and audit of the financial statements by the external auditor		873		750
Expenses for leases low value		549		509
Title classification fees		241		169
Fines applied by other agencies		132		108
Other general administrative expenses		9,393		9,354

Outsource services
Technological developments expenses, certification and technology testing		22,323		25,437
Data processing		11,133		11,907
External collection service		4,841		4,414
External credit evaluation service		5,820		5,729
Call Center service for sales, marketing, quality control customer service		1,695		2,192
External human resources administration services and supply of external personnel		1,820		1,724
Other outsource services		1,144		1,250
External cleaning service, casino, custody of files and documents, storage of furniture and equipment		473		390

Board expenses
Board of Directors Compensation		3,500		3,347
Other Board expenses		78		111

Marketing		33,948		39,617

Taxes, contributions and other legal charges
Contribution to the banking regulator		15,248		14,785
Property taxes		6,020		5,521
Taxes other than income tax		2,803		2,530
Municipal patents		1,752		1,647
Other legal charges		52		60
Total		416,696		403,255

147

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

39.	Depreciation and Amortization:

The amounts corresponding to charges to results for depreciation and amortization during the years 2024 and 2023, are detailed as follows:

	2024		2023
	MCh$		MCh$

Amortization of intangibles assets
Other intangible assets arising from business combinations		—		—
Other independently originated intangible assets		36,265		29,346
Depreciation of property and equipment
Buildings and land		9,725		9,295
Other property and equipment		18,447		21,098
Depreciation and impairment of leased assets
Buildings and land		28,672		31,195
Other property and equipment		—		—
Depreciation for improvements in leased real estate as leased of right-to-use assets		1,135		1,017
Amortization for the right-to-use other intangible assets under lease		—		—
Depreciation of other assets for investment properties		357		357
Amortization of other assets per activity income asset		—		—
Total		94,601		92,308

40.	Impairment of non-financial assets:

As of December 31, 2024 and 2023, the composition of the item for impairment of non-financial assets is composed as follows:

	2024		2023
	MCh$		MCh$

Impairment of intangible assets		—		25
Impairment of property and equipment		1,121		1,754
Impairment of assets from income from ordinary activities from contracts with customers		1,730		(17	)
Total		2,851		1,762

148

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

41.	Credit loss expense:

(a)

The composition is as follows:

	2024			2023
	MCh$			MCh$

Expense of provisions established for loan credit risk		452.448			423.015
Expense of special provisions for credit risk		3.610			3.256
Recovery of written-off credits		(65.313	)		(62.266	)
Impairments for credit risk from financial assets at fair value through other comprehensive income		1.009			(2.754	)
Total		391.754			361.251

(b)

Summary of the expense of provisions constituted for credit risk and expense for credit losses:

	Expense of loans provisions constituted in the year
	Normal Portfolio					Substandard Portfolio			Non-Complying Portfolio							Deductible warranty
	Evaluation					Evaluation			Evaluation							Fogape
As of December 31, 2024	Individual		Group			Individual			Individual		Group		Subtotal			Covid-19			Total
	MCh$		MCh$			MCh$			MCh$		MCh$		MCh$			MCh$			MCh$
Loans and advances to Banks
Provisions established		23		—			—			—		—		23			—			23
Provisions released		—		—			—			—		—		—			—			—
Subtotal		23		—			—			—		—		23			—			23
Commercial loans
Provisions established		2,185		419			—			46,526		67,605		116,735			—			116,735
Provisions released		—		—			(5,007	)		—		—		(5,007	)		(5,970	)		(10,977	)
Subtotal		2,185		419			(5,007	)		46,526		67,605		111,728			(5,970	)		105,758
Residential mortgage loans
Provisions established		—		—			—			—		10,266		10,266			—			10,266
Provisions released		—		(328	)		—			—		—		(328	)		—			(328	)
Subtotal		—		(328	)		—			—		10,266		9,938			—			9,938
Consumer loans
Provisions established		—		—			—			—		351,670		351,670			—			351,670
Provisions released		—		(14,941	)		—			—		—		(14,941	)		—			(14,941	)
Subtotal		—		(14,941	)		—			—		351,670		336,729			—			336,729
Expense (release) of provisions for credit risk		2,208		(14,850	)		(5,007	)		46,526		429,541		458,418			(5,970	)		452,448

Recovery of written-off credits
Loans and advances to Banks																				—
Commercial loans																				(19,752	)
Residential mortgage loans																				(6,941	)
Consumer loans																				(38,620	)
Subtotal																				(65,313	)
Loan credit loss expenses																				387,135

149

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

41.

Credit loss expense, continued:

(b)

Summary of the expense of provisions constituted for credit risk and expense for credit losses, continued;

	Expense of loans provisions constituted in the year
	Normal Portfolio						Substandard Portfolio			Non-Complying Portfolio							Deductible warranty
	Evaluation						Evaluation			Evaluation							Fogape
As of December 31, 2023	Individual			Group			Individual			Individual		Group		Subtotal			Covid-19			Total
	MCh$			MCh$			MCh$			MCh$		MCh$		MCh$			MCh$			MCh$
Loans and advances to Banks
Provisions established		60			—			—			—		—		60			—			60
Provisions released		—			—			—			—		—		—			—			—
Subtotal		60			—			—			—		—		60			—			60
Commercial loans
Provisions established		—			—			—			24,791		71,609		96,400			—			96,400
Provisions released		(5,682	)		(5,468	)		(11,570	)		—		—		(22,720	)		(23,613	)		(46,333	)
Subtotal		(5,682	)		(5,468	)		(11,570	)		24,791		71,609		73,680			(23,613	)		50,067
Residential mortgage loans
Provisions established		—			1,034			—			—		12,393		13,427			—			13,427
Provisions released		—			—			—			—		—		—			—			—
Subtotal		—			1,034			—			—		12,393		13,427			—			13,427
Consumer loans
Provisions established		—			14,797			—			—		344,664		359,461			—			359,461
Provisions released		—			—			—			—		—		—			—
Subtotal		—			14,797			—			—		344,664		359,461			—			359,461
Expense (release) of provisions for credit risk		(5,622	)		10,363			(11,570	)		24,791		428,666		446,628			(23,613	)		423,015

Recovery of written-off credits
Loans and advances to Banks																					—
Commercial loans																					(19,540	)
Residential mortgage loans																					(11,156	)
Consumer loans																					(31,570	)
Subtotal																					(62,266	)
Loan credit loss expenses																					360,749

150

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

41.

Credit loss expense, continued:

(c)

Summary of expense for special provisions for credit risk:

	2024			2023
	MCh$			MCh$
Expenses of provisions for contingent loans:
Loans and advances to Banks		—			—
Commercial loans		5,592			5,585
Consumer loans		(709	)		(1,860	)
Expenses form provisions for country risk for transactions with debtors with residence abroad		(1,273	)		(469	)
Expense of special provisions for loans abroad		—			—
Expenses of additional loan provisions:
Commercial loans		—			—
Residential mortgage loans		—			—
Consumer loans		—			—
Expense of other special provisions established for credit risk		3,610			3,256

42.

Income from discontinued operations:

As of December 31, 2024 and 2023, the Bank does not maintain income from discontinued operations.

43.

Related Party Disclosures:

Related parties are considered to be those persons or legal entities who are in positions to directly or indirectly have significant influence through their ownership or management of the Bank and its subsidiaries, as set out in the Compendium of Accounting Standards for Banks and Chapter 12-4 of the current Compilation of Standards issued by the CMF.

According to the above, the Bank has considered as related parties those persons or legal entities who have a direct participation or through third parties on Bank ownership, where such participation exceeds 5% of the shares, and also people who, regardless of ownership, have authority and responsibility for planning, management and control of the activities of the entity or its subsidiaries. There also are considered as related the companies in which the parties related by ownership or management of the Bank have a share which reaches or exceeds 5%, or has the position of director, general manager or equivalent.

151

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(a)

Assets and liabilities with related parties:

	Related Party Type
Type of current assets and liabilities with related parties As of December 31, 2024	Parent Entity		Other Legal Entity			Key Personnel of the Consolidated Bank			Other Related Parties			Total
	MCh$		MCh$			MCh$			MCh$			MCh$
ASSETS
Financial assets held for trading at fair value through profit or loss:
Derivative Financial Instruments		—		273,492			—			—			273,492
Debt financial instruments		—		—			—			—			—
Other financial instruments		—		—			—			—			—
Non-trading financial assets mandatorily measured at fair value through profit or loss		—		—			—			—			—
Financial assets designated as at fair value through profit or loss		—		—			—			—			—
Financial assets at fair value through other comprehensive income		—		5,388			—			—			5,388
Derivative Financial Instruments for hedging purposes		—		—			—			—			—
Financial assets at amortized cost:
Rights from resale agreements and securities lending		—		—			—			—			—
Debt financial instruments		—		—			—			—			—
Commercial loans		—		266,912			1,291			9,967			278,170
Residential mortgage loans		—		—			14,694			59,861			74,555
Consumer Loans		—		—			1,656			11,482			13,138
Allowances established – loans		—		(1,291	)		(30	)		(326	)		(1,647	)
Other assets		16		132,549			38			7			132,610
Contingent loans		—		159,749			3,822			17,761			181,332

LIABILITIES
Financial liabilities held for trading at fair value through profit or loss:
Derivative Financial Instruments		—		300,756			—			—			300,756
Financial liabilities designated as at fair value through profit or loss		—		—			—			—			—
Derivative Financial Instruments for hedging purposes		—		3,137			—			—			3,137
Financial liabilities at amortized cost:
Current accounts and other demand deposits		170		141,497			2,860			6,844			151,371
Saving accounts and time deposits		151,595		78,618			3,093			19,082			252,388
Obligations by repurchase agreements and securities lending		—		—			—			—			—
Borrowings from financial institutions		—		3,175			—			—			3,175
Debt financial instruments issued		—		—			—			—			—
Other financial obligations		—		—			—			—			—
Lease liabilities		—		9,200			—			—			9,200
Other liabilities		—		140,479			532			5			141,016

152

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(a)

Assets and liabilities with related parties, continued:

	Related Party Type
Type of current assets and liabilities with related parties As of December 31, 2023	Parent Entity		Other Legal Entity			Key Personnel of the Consolidated Bank			Other Related Parties			Total
	MCh$		MCh$			MCh$			MCh$			MCh$
ASSETS
Financial assets held for trading at fair value through profit or loss:
Derivative Financial Instruments		—		212,147			—			—			212,147
Debt financial instruments		—		—			—			—			—
Other financial instruments		—		1,410			—			—			1,410
Non-trading financial assets mandatorily measured at fair value through profit or loss		—		—			—			—			—
Financial assets designated as at fair value through profit or loss		—		—			—			—			—
Financial assets at fair value through other comprehensive income		—		6,328			—			—			6,328
Derivative Financial Instruments for hedging purposes		—		—			—			—			—
Financial assets at amortized cost:
Rights from resale agreements and securities lending		—		—			—			—			—
Debt financial instruments		—		—			—			—			—
Commercial loans		—		199,620			1,028			11,284			211,932
Residential mortgage loans		—		—			17,975			60,153			78,128
Consumer Loans		—		—			1,969			11,744			13,713
Allowances established – loans		—		(1,709	)		(19	)		(312	)		(2,040	)
Other assets		10		169,124			13			16			169,163
Contingent loans		—		119,555			4,058			17,669			141,282

LIABILITIES
Financial liabilities held for trading at fair value through profit or loss:
Derivative Financial Instruments		—		242,098			—			—			242,098
Financial liabilities designated as at fair value through profit or loss		—		—			—			—			—
Derivative Financial Instruments for hedging purposes		—		5,674			—			—			5,674
Financial liabilities at amortized cost:
Current accounts and other demand deposits		336		200,098			2,161			7,573			210,168
Saving accounts and time deposits		85,904		160,760			4,392			24,265			275,321
Obligations by repurchase agreements and securities lending		—		2,003			—			—			2,003
Borrowings from financial institutions		—		86,642			—			—			86,642
Debt financial instruments issued		—		—			—			—			—
Other financial obligations		—		—			—			—			—
Lease liabilities		—		10,845			—			—			10,845
Other liabilities		—		152,457			493			53			153,003

153

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(b)

Income and expenses from related party transactions (*):

As of December 31, 2024	Parent Entity		Other Legal Entity			Key personnel of the consolidated Bank		Other Related parties		Total
	MCh$		MCh$			MCh$		MCh$		MCh$
Interest revenue		—		18,841			454		3,059		22,354
UF indexation revenue		—		1,819			605		2,905		5,329
Income from commissions		146		92,827			43		71		93,087
Net Financial income (expense)		—		35,318			—		—		35,318
Other income		—		—			—		—		—
Total Income		146		148,805			1,102		6,035		156,088

Interest expense		8,420		7,166			249		1,351		17,186
UF indexation expenses		—		—			—		—		—
Expenses from commissions		—		28,569			—		—		28,569
Expenses credit losses (gains)		—		(1,233	)		12		94		(1,127	)
Expenses from salaries and employee benefits		—		312			37,918		81,818		120,048
Administrative expenses		—		11,462			3,628		88		15,178
Other expenses		—		—			1		11		12
Total Expenses		8,420		46,276			41,808		83,362		179,866

As of December 31, 2023	Parent Entity		Other Legal Entity			Key personnel of the consolidated Bank			Other Related parties			Total
	MCh$		MCh$			MCh$			MCh$			MCh$
Interest revenue		—		25,439			499			2,768			28,706
UF indexation revenue		—		3,993			799			3,266			8,058
Income from commissions		165		103,906			24			84			104,179
Net Financial income (expense)		—		(18,367	)		—			—			(18,367	)
Other income		—		215			—			—			215
Total Income		165		115,186			1,322			6,118			122,791

Interest expense		1,998		7,329			538			2,504			12,369
UF indexation expenses		—		—			8			1			9
Expenses from commissions		—		29,508			—			—			29,508
Expenses credit losses (gains)		—		(2,078	)		(3	)		(15	)		(2,096	)
Expenses from salaries and employee benefits		—		421			38,083			80,430			118,934
Administrative expenses		—		11,776			3,786			229			15,791
Other expenses		—		—			2			23			25
Total Expenses		1,998		46,956			42,414			83,172			174,540

(*)

This does not constitute a Statement of Income from operations with related parties since the assets with these parties are not necessarily equal to the liabilities and in each of them the total income and expenses are reflected and not those corresponding to matched operations.

154

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(c)

Transactions with related parties: Below are the individual transactions in the year with related parties that are legal entities, which do not correspond to the usual operations of the line of business carried out with customers in general and when said individual transactions consider a transfer of resources, services or obligations greater than UF 2,000.

As of December 31, 2024

		Description of the transaction						Effect on Income				Effect on Financial position
Company name	Nature of the relationship with the Bank	Type of service	Term	Renewal conditions	Transactions under equivalent conditions to those transactions with mutual independence between the parties	Amount MCh$		Income MCh$		Expenses MCh$		Accounts receivable MCh$		Accounts payable MCh$

Ionix SPA	Other related parties	IT support services	30 days	Contract	Yes		141		—		141		—		—
Servipag Ltda.	Joint venture	IT support services	30 days	Contract	Yes		367		—		367		—		—
		Collection services	30 days	Contract	Yes		4,235		—		4,235		—		387
Bolsa de Comercio de Santiago, Bolsa de Valores	Minority investments	Service of financial information	30 days	Contract	Yes		356		—		356		—		25
		Brokerage commission	30 days	Contract	Yes		423		—		423		—		—
		IT support services	30 days	Contract	Yes		256		—		256		—		—
Enex S.A.	Other related parties	Rent spaces for ATM	30 days	Contract	Yes		1,740		—		1,740		—		498
Universidad del Desarrollo	Other related parties	Advertising service	30 days	Contract	Yes		126		—		126		—		—
Universidad Adolfo Ibáñez	Other related parties	Training	30 days	Contract	Yes		272		—		272		—		—
Bolsa Electrónica de Chile S.A.	Minority investments	Brokerage commission	30 days	Contract	Yes		203		—		203		—		1
		Service of financial information	30 days	Contract	Yes		117		—		117		—		—
DCV Registros S.A.	Other related parties	IT services	30 days	Contract	Yes		294		—		294		—		—
Redbanc S.A.	Associates	Electronic transaction management services	30 days	Contract	Yes		17,658		—		17,658		—		1,707
		IT proyect services	30 days	Contract	Yes		132		—		132		—		—
		Installation services	30 days	Contract	Yes		81		—		81		—		—
		Fraud prevention services	30 days	Contract	Yes		108		—		108		—		—
		IT services	30 days	Contract	Yes		442		—		442		—		—
Depósito Central de Valores S.A.	Other related parties	Quality control and custodial services	30 days	Contract	Yes		833		—		833		—		90
		Custodial services	30 days	Contract	Yes		1,357		—		1,357		—		—
CCLV Contraparte Central S.A.	Minority investments	Brokerage commission	30 days	Contract	Yes		352		—		352		—		22
Manantial S.A.	Other related parties	General expenses	30 days	Contract	Yes		379		—		379		—		—
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.	Associates	Collection services	30 days	Contract	Yes		881		—		881		—		91
Comder Contraparte Central S.A.	Other related parties	Securities clearing services	30 days	Contract	Yes		529		—		529		—		—
Citigroup Global Markets INC	Other related parties	Brokerage commission	30 days	Contract	Yes		387		—		387		—		29
Transbank S.A.	Associates	Card processing	30 days	Contract	Yes		498		—		498		—		97
		Project consultation	30 days	Contract	Yes		114		—		114		—		—
		Fraud prevention services	30 days	Contract	Yes		87		—		87		—		—
		Exchange commission	30 days	Contract	Yes		79,025		79,025		—		—		—
Centro de Compensación Automatizado S.A.	Associates	Fraud prevention services	30 days	Contract	Yes		657		—		657		—		333
		Collection services	30 days	Contract	Yes		187		—		187		—		—
		Transfer services	30 days	Contract	Yes		2,803		—		2,803		—		—
Artikos Chile S.A.	Joint venture	IT support services	30 days	Contract	Yes		422		—		422		—		2
		IT services	30 days	Contract	Yes		465		—		465		—		—
Citibank N.A.	Other related parties	Connectivity business commissions	Quarterly	Contract	Yes		8,065		8,065		—		3,272		—
Fundación Teletón	Other related parties	Advertising services	30 days	Contract	Yes		449		—		449		—		121
		Donations	30 days	Contract	Yes		1,599		—		1,599		—		—
Canal 13	Other related parties	Advertising service	30 days	Contract	Yes		202		—		202		—		73
Inmobiliaria e Inversiones Capitolio S.A.	Other related parties	Leases	30 days	Contract	Yes		84		—		84		—		—
Nuevos Desarrollos S.A.	Other related parties	Financial lease agreements	30 days	Contract	Yes		180		—		—		—		496
Plaza Vespucio SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		127		—		—		—		154
Plaza Oeste SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		254		—		—		—		810
Plaza del Trebol SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		270		—		—		—		73
Plaza Tobalaba SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		135		—		—		—		113
Plaza La Serena SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		223		—		—		—		543
Inmobiliaria Mall Calama S.A.	Other related parties	Financial lease agreements	30 days	Contract	Yes		141		—		—		—		137

155

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(c)

Transactions with related parties, continued:

As of December 31, 2023

		Description of the transaction						Effect on Income				Effect on Financial position
Company name	Nature of the relationship with the Bank	Type of service	Term	Renewal conditions	Transactions under equivalent conditions to those transactions with mutual independence between the parties	Amount MCh$		Income MCh$		Expenses MCh$		Accounts receivable MCh$		Accounts payable MCh$
Ionix SPA	Other related parties	IT license services	30 days	Contract	Yes		637		—		637		—		61
		IT support services	30 days	Contract	Yes		349		—		349		—		—
Servipag Ltda.	Joint venture	IT support services	30 days	Contract	Yes		386		—		386		—		—
		Collection services	30 days	Contract	Yes		4,358		—		4,358		—		432
		Software services	30 days	Contract	Yes		220		—		220		—		—
Bolsa de Comercio de Santiago, Bolsa de Valores	Minority investments	Service of financial information	30 days	Contract	Yes		362		—		362		—		1
		Brokerage commission	30 days	Contract	Yes		344		—		344		—		—
		IT support services	30 days	Contract	Yes		289		—		289		—		—
Enex S.A.	Other related parties	Rent spaces for ATM	30 days	Contract	Yes		1,381		—		1,381		—		221
DCV Registros S.A.	Other related parties	IT services	30 days	Contract	Yes		319		—		319		—		—
CCLV Contraparte Central S.A.	Minority investments	Brokerage commission	30 days	Contract	Yes		272		—		272		—		—
Redbanc S.A.	Associates	Electronic transaction management services	30 days	Contract	Yes		15,570		—		15,570		—		1,589
		IT proyect services	30 days	Contract	Yes		542		—		542		—		—
		IT services	30 days	Contract	Yes		330		—		330		—		—
		Fraud prevention services	30 days	Contract	Yes		82		—		82		—		—
Sistemas Oracle de Chile Ltda.	Other related parties	IT services	30 days	Contract	Yes		91		—		91		—		—
		IT support services	30 days	Contract	Yes		1,326		—		1,326		—		—
Depósito Central de Valores S.A.	Other related parties	Quality control and custodial services	30 days	Contract	Yes		1,026		—		1,026		—		42
		Custodial services	30 days	Contract	Yes		1,042		—		1,042		—		—
Manantial S.A.	Other related parties	General expenses	30 days	Contract	Yes		366		—		366		—		—
Universidad del Desarrollo	Other related parties	Loyalty	30 days	Contract	Yes		115		—		115		—		7
Universidad Adolfo Ibáñez	Other related parties	Training	30 days	Contract	Yes		334		—		334		—		—
Canal 13 S.A.	Other related parties	Advertising service	30 days	Monthly	Yes		92		—		92		—		36
Nexus S.A.	Other related parties	General income	30 days	Contract	Yes		148		148		—		—		—
		Card processing	30 days	Contract	Yes		3,487		—		3,487		—		—
		IT services	30 days	Contract	Yes		405		—		405		—		—
		Embossing services	30 days	Contract	Yes		235		—		235		—		—
		Customer product delivery services	30 days	Contract	Yes		273		—		273		—		—
		Fraud prevention services	30 days	Contract	Yes		380		—		380		—		—
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.	Associates	Collection services	30 days	Contract	Yes		669		—		669		—		61
Comder Contraparte Central S.A.	Other related parties	Securities clearing services	30 days	Contract	Yes		703		—		703		—		—
Bolsa Electrónica de Chile S.A.	Minority investments	Brokerage commission	30 days	Contract	Yes		141		—		141		—		—
		Service of financial information	30 days	Contract	Yes		84		—		84		—		—
Citigroup Global Markets INC	Other related parties	Brokerage commission	30 days	Contract	Yes		363		—		363		—		—
Transbank S.A.	Associates	Card processing	30 days	Contract	Yes		580		—		580		—		51
		Project consultation	30 days	Contract	Yes		153		—		153		—		—
		Exchange commission	30 days	Contract	Yes		93,168		93,168		—		9		—
Centro de Compensación Automatizado S.A.	Associates	Fraud prevention services	30 days	Contract	Yes		553		—		553		—		300
		Transfer services	30 days	Contract	Yes		2,581		—		2,581		—		—
		Collection services	30 days	Contract	Yes		180		—		180		—		—
Artikos Chile S.A.	Joint venture	IT support services	30 days	Contract	Yes		457		—		457		—		19
		IT services	30 days	Contract	Yes		383		—		383		—		—
Citibank N.A.	Other related parties	Connectivity business commissions	Quarterly	Contract	Yes		5,867		5,867		—		2,517		—
Nuevos Desarrollos S.A.	Other related parties	Financial lease agreements	30 days	Contract	Yes		335		—		—		—		129
Plaza Vespucio SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		82		—		—		—		261
Plaza Oeste SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		243		—		—		—		963
Plaza del Trébol SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		292		—		—		—		373
Plaza Tobalaba SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		128		—		—		—		229
Plaza la Serena SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		246		—		—		—		714
Inmobiliaria Mall Calama S.A.	Other related parties	Financial lease agreements	30 days	Contract	Yes		162		—		—		—		306
Plaza Antofagasta SPA	Other related parties	Financial lease agreements	30 days	Contract	Yes		87		—		—		—		—

156

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

43.

Related Party Disclosures, continued:

(d)

Payments to the Board of Directors and to key personnel of the management of the Bank and its subsidiaries:

	2024		2023
	MCh$		MCh$
Directory:
Payment of remuneration and attendance fees of the Board of Directors - Bank and its subsidiaries		3,500		3,347
Other Board expenses		78		111

Key Personnel of the Management of the Bank and its Subsidiaries:
Payment for benefits to short-term employees		33,779		36,535
Payment for benefits to employees for termination of employment contract		4,139		1,548
Payment for benefits to post-employment employees		—		—
Payment for benefits to long-term employees		—		—
Payment to employees based on shares or equity instruments		—		—
Payment for obligations for defined contribution post-employment plans		—		—
Payment for obligations for post-employment defined benefit plans		—		—
Payment for other staff obligations		—		—
Subtotal		37,918		38,083
Total		41,496		41,541

(e)

Composition of the Board of Directors and key personnel of the Management of the Bank and its subsidiaries:

	2024		2023
	No. Executives
Directory:		17		16
Directors – Bank and its subsidiaries

Key Personnel of the Management of the Bank and its Subsidiaries:
CEO – Bank		1		1
CEOs – Subsidiaries		5		5
Division Managers / Area – Bank		74		90
Division Managers / Area – Subsidiaries		27		30
Subtotal		107		126
Total		124		142

157

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities:

Banco de Chile and its subsidiaries have defined a corporate framework for valuation and control related with the process to the fair value measurement.

Within the established framework includes the Product Control Unit, which is independent of the business areas and reports to the Financial Management Control and Division Manager. This function befall to the Financial Control, Treasury and Capital Manager, through the Financial Risk Information and Control Section, is responsible for independent verification of price and results of trading (including derivatives) and investment operations and all fair value measurements.

To achieve the appropriate measurements and controls, the Bank and its subsidiaries, take into account at least the following aspects:

(i)

Industry standard valuation.

To value financial instruments, Banco de Chile uses industry standard modeling; quota value, share price, discounted cash flows and valuation of options through Black-Scholes-Merton, according to the case.

The input parameters for the valuation of fixed income instruments and options correspond to rates, prices and volatility levels for different terms and market factors that are traded in the national and international market and that are provided by the main sources of the market.

In the case of the valuation of derivatives under a CSA (Credit Support Annex Discounting) agreement, the rates used to discount the flows correspond to the CSA Discounting methodology, where the discount factors used depend on the collateral agreement that exists with each counterparty.

(ii)

Quoted prices in active markets.

The fair value for instruments with quoted prices in active markets is determined using daily quotes from electronic systems information (such as Bolsa de Comercio de Santiago, Bloomberg, LVA and Risk America, etc). This quote represents the price at which these instruments are regularly traded in the financial markets.

(iii)

Valuation techniques.

If no specific quotes are available for the instrument to be valued, valuation techniques will be used to determine the fair value.

Due to, in general, the valuation models require a set of market parameters as inputs, the aim is to maximize information based on observable or price-related quotations for similar instruments in active markets. To the extent there is no information in direct from the markets, data from external suppliers of information, prices of similar instruments and historical information are used to validate the valuation parameters.

158

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(iv)

Fair value adjustments.

Part of the fair value process considers four adjustments to the market value, calculated based on the market parameters, including; a liquidity adjustment, a Bid/Offer adjustment, an adjustment for derivative credit risk (CVA and DVA), and an adjustment for the funding of the derivative cash flows (FVA). Likewise, for certain fixed income instruments held in investment portfolios measured at fair value through other comprehensive income or at amortized cost, the portion of the fair value adjustment explained by impairment due to counterparty credit risk is determined.

The calculation of the liquidity adjustment considers the size of the position in each factor, the particular liquidity of each factor, the relative size of Banco de Chile with respect to the market, and the liquidity observed in transactions recently carried out in the market. In turn, the Bid/Offer adjustment, represents the impact on the valuation of an instrument depending on whether the position corresponds to a long (bought) or a short (sold). To calculate this adjustment is used the direct quotes from active markets or indicative prices or derivatives of similar assets depending on the instrument, considering the Bid, Mid and Offer, respectively. Finally, the adjustment made for CVA and DVA for derivatives corresponds to the credit risk recognition of the issuer, either of the counterparty (CVA) or of Banco de Chile (DVA). Similarly, the determination of credit risk impairment is determined based on the counterparty risk implicit in the instrument’s market rate. Finally, the FVA adjustment for derivatives corresponds to a value adjustment that reflects the expected cost (or benefit) of financing (reinvesting) the cash flows of the derivative, with respect to a reference discount rate, when there are no collaterals or this one is imperfect.

Liquidity value adjustments are made to trading instruments (including derivatives) only, while Bid/Offer adjustments are made for trading instruments and Financial instrument at fair value through Other Comprehensive Income. Adjustments for CVA / DVA/FVA/COLVA are carried out only for derivatives. For its part, credit risk impairment is computed only for fixed income instruments measured at fair value through other comprehensive income and fixed income instruments measured at amortized cost.

159

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(v)

Fair value control.

A process of independent verification of prices and interest rates is executed daily, in order to control that the market parameters used by Banco de Chile in the valuation of the financial instruments relating to the current state of the market and from them the best estimate derived of the fair value. The objective of this process is to control that the official market parameters provided by the respective business areas, before being entered into the valuation, are within acceptable ranges of differences when compared to the same set of parameters prepared independently by the Financial Risk Information and Control Section. As a result, value differences are obtained at the level of currency, product and portfolio. In the event significant differences exist, these differences are scaled according to the amount of individual materiality of each market factor and aggregated at the portfolio level, according to the grouping levels within previously defined ranges. These ranges are approved by the Finance, International and Financial Risk Committee.

Complementary and in parallel, the Financial Risk Information and Control Section generates and reports on a daily basis Profit and Loss (“P&L”) and Exposure to Market Risks, which allow for proper control and consistency of the parameters used in the valuation.

(vi)

Judgmental analysis and information to Management.

In particular cases, where there are no market quotations for the instrument to be valued and there are no prices for similar transactions instruments or indicative parameters, a specific control and a reasoned analysis must be carried out in order to estimate the fair value of the operation. Within the valuation framework described in the Reasonable Value Policy (and its procedure) approved by the Board of Directors of Banco de Chile, a required level of approval is set in order to carry out transactions where market information is not available or it is not possible to infer prices or rates from it.

(a)

Hierarchy of instruments valued at Fair value:

Banco de Chile and its subsidiaries, classify all the financial instruments among the following levels:

Level 1:

These are financial instruments whose fair value is calculated at quoted prices (unadjusted) in extracted from liquid and deep markets. For these instruments there are quotes or prices (return internal rates, quote value, price) the observable market, so that assumptions are not required to determine the value.

In this level, the following instruments are considered: currency futures, debt instruments issued by the Treasury and the Central Bank of Chile, which belong to benchmarks, mutual fund investments and equity shares.

For the instruments of the Central Bank of Chile and the General Treasury of the Republic, all those mnemonics belonging to a Benchmark, in other words corresponding to one of the following categories published by the Santiago Stock Exchange, will be considered as Level 1: Pesos-02, Pesos-03, Pesos-04, Pesos-05, Pesos-07, Pesos-10, UF-02, UF-04, UF-05, UF-07, UF-10, UF-20, UF-30.

160

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

A Benchmark corresponds to a group of mnemonics that are similar in duration and are traded in an equivalent way, i.e., the price (return internal rates in this case) obtained is the same for all the instruments that make up a Benchmark. This feature defines a greater depth of market, with daily quotations that allow classifying these instruments as Level 1.

In the case of debt issued by the Chilean Government, the internal rate of return of the market is used to discount all flows to present value. In the case of mutual funds and equity shares, the current market price per share, which multiplied by the number of instruments results in the fair value.

The preceding described valuation methodology is equivalent to the one used by the Bolsa de Comercio de Santiago (Santiago Stock Exchange) and correspond to the standard methodology used in the market.

Level 2:

They are financial instruments whose fair value is calculated based on prices other than in quoted in Level 1 that are observable for the asset or liability, directly (that is, as prices or internal rates of return) or indirectly (that is, derived from prices or internal rates of return from similar instruments). These categories include:

Quoted prices for similar assets or liabilities in active markets.

Quoted prices for identical or similar assets or liabilities in markets that are not active.

Inputs data other than quoted prices that are observable for the asset or liability.

Inputs data corroborated by the market.

At this level there are mainly derivatives instruments, debt issued by banks, debt issues of Chilean and foreign companies, issued in Chile or abroad, mortgage claims, financial brokerage instruments and some issuances by the Central Bank of Chile and the General Treasury of the Republic, which do not belong to benchmarks.

To value derivatives, depends on whether they are impacted by volatility as a relevant market factor in standard valuation methodologies; for options the Black-Scholes-Merton formula is used; for the rest of the derivatives, forwards and swaps, discounted cash flows method is used.

For the remaining instruments at this level, as for debt issues of level 1, the valuation is done through cash flows model by using an internal rate of return that can be derived or estimated from internal rates of return of similar securities as mentioned above.

In the event that there is no observable price for an instrument in a specific term, the price will be inferred from the interpolation between periods that have observable quoted price in active markets. These models incorporate various market variables, including the credit quality of counterparties, exchange rates and interest rate curves.

161

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

Valuation Techniques and Inputs for Level 2 Instrument:

Type of
Financial
Instrument

Valuation
Method

Description: Inputs and Sources

Local Bank and

Corporate Bonds

Discounted cash

flows model

Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on a Base Yield (Central Bank Bonds) and issuer spread.

The model is based on daily prices and risk/maturity similarities between

Instruments.

Offshore Bank and

Corporate Bonds

Prices are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices.

Local Central Bank

and Treasury Bonds

Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices.

Mortgage

Notes

Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on a Base Yield (Central Bank Bonds) and issuer spread.

The model takes into consideration daily prices and risk/maturity similarities between instruments.

Time

Deposits

Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market.

Model is based on daily prices and considers risk/maturity similarities between instruments.

Cross Currency Swaps,

Interest Rate Swaps,

FX Forwards, Inflation

Forwards

Forward Points, Inflation forecast and local swap rates are provided by market brokers that are widely used in the Chilean market.

Offshore rates and spreads are obtained from third party price providers that are widely used in the Chilean market.

Zero Coupon rates are calculated by using the bootstrapping method over swap rates.

FX Options

Black-Scholes

Model

Prices for volatility surface estimates are obtained from market brokers that are widely used in the Chilean market.

162

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

Level 3:

These are financial instruments whose fair value is determined using non-observable inputs data neither for the assets or liabilities under analysis nor for similar instruments. An adjustment to an input that is significant to the entire measurement can result in a fair value measurement classified within Level 3 of the fair value hierarchy, if the adjustment uses significant non-observable data entry.

The instruments likely to be classified as level 3 are mainly Corporate Debt by Chilean and foreign companies, issued both in Chile and abroad.

Valuation Techniques and Inputs for Level 3 Instrument:

Type of
Financial
Instrument

Valuation
Method

Description: Inputs and Sources

Local Bank and

Corporate Bonds

Discounted cash

flows model

Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (Central Bank Bonds) and issuer spread. These inputs (base yield and issuer spread) are provided on a daily basis by third party price providers that are widely used in the Chilean market.

Offshore Bank and Corporate Bonds

Discounted cash

flows model

Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (US-Libor) and issuer spread. These inputs (base yield and issuer spread) are provided on a weekly basis by third party price providers that are widely used in the Chilean market.

163

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(b)

Level chart:

The following table shows the classification by levels, for financial instruments registered at fair value.

	Level 1				Level 2				Level 3				Total
	2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Financial Assets
Financial Assets held for trading at fair value through profit or loss
Financial Derivative contracts:
Forwards		—		—		227,670		212,475		—		—		227,670		212,475
Swaps		—		—		2,070,481		1,818,155		—		—		2,070,481		1,818,155
Call Options		—		—		4,949		3,435		—		—		4,949		3,435
Put Options		—		—		253		1,311		—		—		253		1,311
Futures		—		—		—		—		—		—		—		—
Subtotal		—		—		2,303,353		2,035,376		—		—		2,303,353		2,035,376
Debt Financial Instruments:
From the Chilean Government and Central Bank		210,418		181,702		1,285,039		2,845,611		—		—		1,495,457		3,027,313
Other debt financial instruments issued in Chile		—		—		206,675		301,948		11,273		34,363		217,948		336,311
Financial debt instruments issued Abroad		—		—		976		—		—		—		976		—
Subtotal		210,418		181,702		1,492,690		3,147,559		11,273		34,363		1,714,381		3,363,624

Others		411,689		409,328		—		—		—		—		411,689		409,328

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments: (1)
From the Chilean Government and Central Bank		550,418		532,203		110,359		1,305,449		—		—		660,777		1,837,652
Other debt financial instruments issued in Chile		—		—		1,303,708		1,653,182		71,922		88,483		1,375,630		1,741,665
Financial debt instruments issued Abroad		—		—		51,938		207,208		—		—		51,938		207,208
Subtotal		550,418		532,203		1,466,005		3,165,839		71,922		88,483		2,088,345		3,786,525

Financial Derivative contracts for hedging purposes
Forwards		—		—		—		—		—		—		—		—
Swaps		—		—		73,959		49,065		—		—		73,959		49,065
Call Options		—		—		—		—		—		—		—		—
Put Options		—		—		—		—		—		—		—		—
Futures		—		—		—		—		—		—		—		—
Subtotal		—		—		73,959		49,065		—		—		73,959		49,065
Total		1,172,525		1,123,233		5,336,007		8,397,839		83,195		122,846		6,591,727		9,643,918

Financial Liabilities
Financial liabilities held for trading at fair value through profit or loss:
Financial Derivative contracts:
Forwards		—		—		241,632		221,965		—		—		241,632		221,965
Swaps		—		—		2,198,068		1,970,024		—		—		2,198,068		1,970,024
Call Options		—		—		4,151		1,061		—		—		4,151		1,061
Put Options		—		—		955		3,871		—		—		955		3,871
Futures		—		—		—		—		—		—		—		—
Subtotal		—		—		2,444,806		2,196,921		—		—		2,444,806		2,196,921

Others		—		—		990		2,305		—		—		990		2,305

Financial derivative contracts for hedging purposes
Forwards		—		—		—		—		—		—		—		—
Swaps		—		—		141,040		160,602		—		—		141,040		160,602
Call Options		—		—		—		—		—		—		—		—
Put Options		—		—		—		—		—		—		—		—
Futures		—		—		—		—		—		—		—		—
Subtotal		—		—		141,040		160,602		—		—		141,040		160,602
Total		—		—		2,586,836		2,359,828		—		—		2,586,836		2,359,828

(1)	As of December 31, 2024, 100% of instruments of Level 3 have denomination “Investment Grade”. Also, 100% of total of these financial instruments correspond to domestic issuers.

164

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(c)

Level 3 reconciliation:

The following table shows the reconciliation between the balances at the beginning and at the end of year for those instruments classified in Level 3, whose fair value is reflected in the Consolidated Financial Statements:

	December 2024
	Balance as of January 1, 2024		Gain (Loss) Recognized in Income (1)		Gain (Loss) Recognized in Equity (2)		Purchases		Sales			Transfer from Level 1 and 2		Transfer to Level 1 and 2			Balance as of December 31, 2024
	MCh$		MCh$		MCh$		MCh$		MCh$			MCh$		MCh$			MCh$
Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile		34,363		1,409		—		25,279		(56,736	)		6,958		—			11,273
Subtotal		34,363		1,409		—		25,279		(56,736	)		6,958		—			11,273

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments:
Other debt financial instruments issued in Chile		88,483		586		1,682		58,608		(27,961	)		11,268		(60,744	)		71,922
Subtotal		88,483		586		1,682		58,608		(27,961	)		11,268		(60,744	)		71,922
Total		122,846		1,995		1,682		83,887		(84,697	)		18,226		(60,744	)		83,195

	December 2023
	Balance as of January 1, 2023		Gain (Loss) Recognized in Income (1)		Gain (Loss) Recognized in Equity (2)			Purchases		Sales			Transfer from Level 1 and 2		Transfer to Level 1 and 2			Balance as of December 31, 2023
	MCh$		MCh$		MCh$			MCh$		MCh$			MCh$		MCh$			MCh$
Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile		100,519		767		—			18,085		(62,179	)		15,190		(38,019	)		34,363
Subtotal		100,519		767		—			18,085		(62,179	)		15,190		(38,019	)		34,363

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments:
Other debt financial instruments issued in Chile		41,283		4,093		(7,355	)		63,930		(1,695	)		3,951		(15,724	)		88,483
Subtotal		41,283		4,093		(7,355	)		63,930		(1,695	)		3,951		(15,724	)		88,483
Total		141,802		4,860		(7,355	)		82,015		(63,874	)		19,141		(53,743	)		122,846

(1)

Recorded in income under item “Net Financial income (expense)”.

(2)

Recorded in equity under item “Accumulated other comprehensive income”.

165

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(d)

Sensitivity of instruments classified in Level 3 to changes in key assumptions of models:

The following table shows the sensitivity, by type of instrument, of those instruments classified in Level 3 using alternative in key valuation assumptions:

	As of December 31, 2024					As of December 31, 2023
	Level 3		Sensitivity to changes in key assumptions of models			Level 3		Sensitivity to changes in key assumptions of models
	MCh$		MCh$			MCh$		MCh$

Financial Assets held for trading at fair value through profit or loss
Debt Financial Instruments:
Other debt financial instruments issued in Chile		11,273		(255	)		34,363		(696	)
Subtotal		11,273		(255	)		34,363		(696	)

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments:
Other debt financial instruments issued in Chile		71,922		(2,320	)		88,483		(2,721	)
Subtotal		71,922		(2,320	)		88,483		(2,721	)
Total		83,195		(2,575	)		122,846		(3,417	)

With the purpose of determining the sensitivity of the financial investments to changes in significant market factors, the Bank has made alternative calculations at fair value, changing those key parameters for the valuation and which are not directly observable in screens. In the case of the financial assets listed in the table above, which correspond to Bank Bonds and Corporate Bonds, it was considered that, since there are no current observables prices, the input prices will be based on brokers’ quotes. The prices are usually calculated as a base rate plus a spread. For Local Bonds it was determined to apply a 10% impact on the price. The 10% impact is considered reasonable, taking into account the market performance of these instruments and comparing it against the bid/offer adjustment that is provisioned by these instruments.

166

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(e)

Other assets and liabilities:

The following table summarizes the fair values of the Bank’s main financial assets and liabilities that are not recorded at fair value in the Consolidated Statement of Financial Position. The values shown in this note are not attempt to estimate the value of the Bank’s income-generating assets, nor forecast their future behavior. The estimated fair value is as follows:

	Book Value				Estimated Fair Value
	2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$

Assets
Cash and due from banks		2,699,076		2,464,648		2,699,076		2,464,648
Transactions in the course of collection		372,456		415,505		372,456		415,505
Subtotal		3,071,532		2,880,153		3,071,532		2,880,153
Financial assets at amortized cost:
Rights from resale agreements and securities lending		87,291		71,822		87,291		71,822
Debt financial instruments		944,074		1,431,083		892,550		1,368,416
Loans and advances to Banks:
Domestic banks		299,888		—		299,888		—
Central Bank of Chile		—		2,100,933		—		2,100,933
Foreign banks		366,927		418,247		366,245		412,662
Subtotal		1,698,180		4,022,085		1,645,974		3,953,833
Loans to customers, net:
Commercial loans		19,724,933		19,624,909		19,561,279		19,193,778
Residential mortgage loans		13,180,186		12,269,148		13,000,178		11,656,071
Consumer loans		5,183,917		4,937,679		5,247,985		5,025,163
Subtotal		38,089,036		36,831,736		37,809,442		35,875,012
Total		42,858,748		43,733,974		42,526,948		42,708,998

Liabilities
Transactions in the course of payment		283,605		356,871		283,605		356,871
Financial liabilities at amortized cost:
Current accounts and other demand deposits		14,263,303		13,321,660		14,263,303		13,321,660
Saving accounts and time deposits		14,168,703		15,365,562		14,170,156		15,363,772
Obligations by repurchase agreements and securities lending		109,794		157,173		109,794		157,173
Borrowings from financial institutions		1,103,468		5,360,715		1,071,097		5,152,776
Debt financial instruments issued:
Letters of credit for residential purposes		849		1,433		946		1,533
Letters of credit for general purposes		1		11		1		12
Bonds		9,689,219		9,358,621		9,596,699		9,090,188
Other financial obligations		284,479		339,305		284,479		339,327
Subtotal		39,619,816		43,904,480		39,496,475		43,426,441
Financial instruments of regulatory capital issued:
Subordinate bonds		1,068,879		1,039,814		1,057,509		1,035,801
Total		40,972,300		45,301,165		40,837,589		44,819,113

Other financial assets and liabilities not measured at their fair value, but for which a fair value is estimated, even if not managed based on such value, include assets and liabilities such as placements, deposits and other time deposits, debt issued, and other financial assets and obligations with different maturities and characteristics. The fair value of these assets and liabilities is calculated using the Discounted Cash Flow model and the use of various data sources such as yield curves, credit risk spreads, etc. In addition, due to some of these assets and liabilities are not traded on the market, periodic reviews and analyzes are required to determine the suitability of the inputs and determined fair values.

167

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(f)

Levels of other assets and liabilities:

The following table shows the estimated fair value of financial assets and liabilities not valued at their fair value, as of December 31, 2024 and 2023:

	Level 1 Estimated Fair Value				Level 2 Estimated Fair Value				Level 3 Estimated Fair Value				Total Estimated Fair Value
	2024		2023		2024		2023		2024		2023		2024		2023
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$

Assets
Cash and due from banks		2,699,076		2,464,648		—		—		—		—		2,699,076		2,464,648
Transactions in the course of collection		372,456		415,505		—		—		—		—		372,456		415,505
Subtotal		3,071,532		2,880,153		—		—		—		—		3,071,532		2,880,153
Financial assets at amortized cost:
Rights from resale agreements and securities lending		87,291		71,822		—		—		—		—		87,291		71,822
Debt financial instruments		892,550		1,368,416		—		—		—		—		892,550		1,368,416
Loans and advances to Banks:
Domestic banks		299,888		—		—		—		—		—		299,888		—
Central Bank of Chile		—		2,100,933		—		—		—		—		—		2,100,933
Foreign banks		—		—		—		—		366,245		412,662		366,245		412,662
Subtotal		1,279,729		3,541,171		—		—		366,245		412,662		1,645,974		3,953,833
Loans to customers, net:
Commercial loans		—		—		—		—		19,561,279		19,193,778		19,561,279		19,193,778
Residential mortgage loans		—		—		—		—		13,000,178		11,656,071		13,000,178		11,656,071
Consumer loans		—		—		—		—		5,247,985		5,025,163		5,247,985		5,025,163
Subtotal		—		—		—		—		37,809,442		35,875,012		37,809,442		35,875,012
Total		4,351,261		6,421,324		—		—		38,175,687		36,287,674		42,526,948		42,708,998

Liabilities
Transactions in the course of payment		283,605		356,871		—		—		—		—		283,605		356,871
Financial liabilities at amortized cost:
Current accounts and other demand deposits		14,263,303		13,321,660		—		—		—		—		14,263,303		13,321,660
Saving accounts and time deposits		—		—		—		—		14,170,156		15,363,772		14,170,156		15,363,772
Obligations by repurchase agreements and securities lending		109,794		157,173		—		—		—		—		109,794		157,173
Borrowings from financial institutions		—		—		—		—		1,071,097		5,152,776		1,071,097		5,152,776
Debt financial instruments issued:
Letters of credit for residential purposes		—		—		946		1,533		—		—		946		1,533
Letters of credit for general purposes		—		—		1		12		—		—		1		12
Bonds		—		—		9,596,699		9,090,188		—		—		9,596,699		9,090,188
Other financial obligations		—		—		—		—		284,479		339,327		284,479		339,327
Subtotal		14,373,097		13,478,833		9,597,646		,091,733		15,525,732		20,855,875		39,496,475		43,426,441
Financial instruments of regulatory capital issued:
Subordinate bonds		—		—		—		—		1,057,509		1,035,801		1,057,509		1,035,801
Total		14,656,702		13,835,704		9,597,646		9,091,733		16,583,241		21,891,676		40,837,589		44,819,113

168

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

44.

Fair Value of Financial Assets and Liabilities, continued:

(f)

Levels of other assets and liabilities, continued:

The Bank determines the fair value of these assets and liabilities according to the following:

Short-term assets and liabilities: For assets and liabilities with short-term maturity, it is assumed that the book values approximate to their fair value. This assumption is applied to the following assets and liabilities:

Assets:		Liabilities:

-	Cash and deposits in banks	-	Current accounts and other demand deposits
-	Transactions in the course of collection	-	Transactions in the course of payments
-	Investment under resale agreements and securities loans	-	Obligations under repurchase agreements and securities loans
-	Loans and advance to domestic banks (including the Central Bank of Chile)

Loans to Customers and Advances to foreign banks: Fair value is determined by using the discounted cash flow model and internally generated discount rates, based on internal transfer rates derived from our internal transfer price process. Once the present value is determined, we deduct the related loan loss allowances in order to incorporate the credit risk associated with each contract or loan. As we use internally generated parameters for valuation purposes, we categorize these instruments in Level 3.

Debt financial instruments at amortized cost: The fair value is calculated with the methodology of the Stock Exchange, using the IRR observed in the market. Because the instruments that are in this category correspond to Treasury Bonds that are Benchmark, they are classified in Level 1.

Letters of Credit and Bonds: In order to determine the present value of contractual cash flows, we apply the discounted cash flow model by using market interest rates that are available in the market, either for the instruments under valuation or instruments with similar features that fit valuation needs in terms of currency, maturities and liquidity. The market interest rates are obtained from third party price providers widely used by the market. As a result of the valuation technique and the quality of inputs (observable) used for valuation, we categorize these financial liabilities in Level 2.

Saving Accounts, Time Deposits, Borrowings from Financial Institutions (including the Central Bank of Chile), Subordinated Bonds and Other borrowings financial: The discounted cash flow model is used to obtain the present value of committed cash flows by applying a bucket approach and average adjusted discount rates that derived from both market rates for instruments with similar features and our internal transfer price process. As we use internally generated parameters and/or apply significant judgmental analysis for valuation purposes, we categorize these financial liabilities in Level 3.

169

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

45.

Maturity according to their remaining Terms of Financial Assets and Liabilities:

The table below details the main financial assets and liabilities grouped in accordance with their remaining maturity, including capitals and accrued interest as of December 31, 2024 and 2023. As these are for trading and Financial instrument at fair value through other comprehensive income are included at their fair value:

	December 2024
	Demand		Up to 1 month		Over 1 month and up to 3 months		Over 3 month and up to 12 months		Subtotal up to 1 year		Over 1 year and up to 3 years		Over 3 year and up to 5 years		Over 5 years		Subtotal over 1 year		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Assets
Cash and due from banks		2,699,076		—		—		—		2,699,076		—		—		—		—		2,699,076
Transactions in the course of collection		—		372,456		—		—		372,456		—		—		—		—		372,456
Financial assets held for trading at fair value through profit or loss:
Derivative contracts financial		—		87,403		120,813		465,718		673,934		540,872		405,243		683,304		1,629,419		2,303,353
Debt financial instruments		—		1,714,381		—		—		1,714,381		—		—		—		—		1,714,381
Others		—		411,689		—		—		411,689		—		—		—		—		411,689
Financial assets at fair value through other comprehensive income		—		123,164		250,542		683,008		1,056,714		196,319		590,462		244,850		1,031,631		2,088,345
Derivative contracts financial for hedging purposes		—		—		—		4,783		4,783		25,936		15,741		27,499		69,176		73,959
Financial assets at amortized cost:
Rights from resale agreements and securities lending		—		55,295		31,242		754		87,291		—		—		—		—		87,291
Debt financial instruments (*)		—		—		16,833		—		16,833		477,895		131,070		318,311		927,276		944,109
Loans and advances to Banks (**)		—		398,512		57,306		211,885		667,703		—		—		—		—		667,703
Loans to customers, net (**)		—		5,344,299		2,853,497		7,464,859		15,662,655		6,849,850		4,175,945		12,186,670		23,212,465		38,875,120
Total financial assets		2,699,076		8,507,199		3,330,233		8,831,007		23,367,515		8,090,872		5,318,461		13,460,634		26,869,967		50,237,482

	December 2024
	Demand			Up to 1 month			Over 1 month and up to 3 months		Over 3 month and up to 12 months		Subtotal up to 1 year			Over 1 year and up to 3 years		Over 3 year and up to 5 years		Over 5 years		Subtotal over 1 year		Total
	MCh$			MCh$			MCh$		MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities
Transactions in the course of payment		—			283,605			—		—		283,605			—		—		—		—		283,605
Financial liabilities held for trading at fair value through profit or loss:
Derivative contracts financial		—			80,209			103,327		450,350		633,886			674,660		475,577		660,683		1,810,920		2,444,806
Others		—			580			—		—		580			410		—		—		410		990
Derivative contracts financial for hedging purposes		—			—			—		10,741		10,741			241		28,906		101,152		130,299		141,040
Financial liabilities at amortized cost:
Current accounts and other demand deposits		14,263,303			—			—		—		14,263,303			—		—		—		—		14,263,303
Saving accounts and time deposits (***)		—			9,029,159			2,636,427		2,073,931		13,739,517			53,594		452		547		54,593		13,794,110
Obligations by repurchase agreements and securities lending		—			109,214			65		515		109,794			—		—		—		—		109,794
Borrowings from financial institutions		—			7,945			161,196		783,552		952,693			150,775		—		—		150,775		1,103,468
Debt financial instruments issued:
Letters of credit		—			138			140		161		439			40		86		285		411		850
Bonds		—			4,451			134,852		1,033,995		1,173,298			2,577,932		2,043,457		3,894,532		8,515,921		9,689,219
Other financial obligations		—			284,479			—		—		284,479			—		—		—		—		284,479
Lease liabilities		—			2,252			4,728		19,046		26,026			36,552		18,746		10,105		65,403		91,429
Financial instruments of regulatory capital issued		—			1,815			—		112,095		113,910			13,514		11,365		930,090		954,969		1,068,879
Total financial liabilities		14,263,303			9,803,847			3,040,735		4,484,386		31,592,271			3,507,718		2,578,589		5,597,394		11,683,701		43,275,972

Mismatch		(11,564,227	)		(1,296,648	)		289,498		4,346,621		(8,224,756	)		4,583,154		2,739,872		7,863,240		15,186,266		6,961,510

(*)

These balances are presented without deduction of impairment, wich amount to Ch$35 million.

(**)

These balances are presented without deduction of their respective provisions, which amount to Ch$786,084 million for loans to customers and Ch$888 million for borrowings from financial institutions.

(***)

Excludes term saving accounts, which amount to Ch$374,593 million.

170

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

45.

Maturity according to their remaining Terms of Financial Assets and Liabilities, continued:

	December 2023
	Demand		Up to 1 month		Over 1 month and up to 3 months		Over 3 month and up to 12 months		Subtotal up to 1 year		Over 1 year and up to 3 years		Over 3 year and up to 5 years		Over 5 years		Subtotal over 1 year		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Assets
Cash and due from banks	2,464,648		—		—		—		2,464,648		—		—		—		—		2,464,648
Transactions in the course of collection		—		415,505		—		—		415,505		—		—		—		—		415,505
Financial assets held for trading at fair value through profit or loss:
Derivative contracts financial		—		56,847		130,507		309,218		496,572		560,641		314,649		663,514		1,538,804		2,035,376
Debt financial instruments		—		3,363,624		—		—		3,363,624		—		—		—		—		3,363,624
Others		—		409,328		—		—		409,328		—		—		—		—		409,328
Financial assets at fair value through other comprehensive income		—		180,968		721,297		1,790,913		2,693,178		257,310		478,175		357,862		1,093,347		3,786,525
Derivative contracts financial for hedging purposes		—		—		—		14,321		14,321		1,530		21,062		12,152		34,744		49,065
Financial assets at amortized cost:
Rights from resale agreements and securities lending		—		61,005		10,322		495		71,822		—		—		—		—		71,822
Debt financial instruments (*)		—		—		—		507,261		507,261		478,818		128,728		316,334		923,880		1,431,141
Loans and advances to Banks (**)		—		2,216,942		73,506		229,483		2,519,931		—		—		—		—		2,519,931
Loans to customers, net (**)		—		5,428,312		2,587,416		6,993,529		15,009,257		7,092,458		3,965,966		11,533,023		22,591,447		37,600,704
Total financial assets		2,464,648		12,132,531		3,523,048		9,845,220		27,965,447		8,390,757		4,908,580		12,882,885		26,182,222		54,147,669

	December 2023
	Demand			Up to 1 month		Over 1 month and up to 3 months			Over 3 month and up to 12 months		Subtotal up to 1 year			Over 1 year and up to 3 years		Over 3 year and up to 5 years		Over 5 years		Subtotal over 1 year		Total
	MCh$			MCh$		MCh$			MCh$		MCh$			MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities
Transactions in the course of payment		—			356,871		—			—		356,871			—		—		—		—		356,871
Financial liabilities held for trading at fair value through profit or loss:
Derivative contracts financial		—			57,324		141,764			319,273		518,361			566,762		431,076		680,722		1,678,560		2,196,921
Others		—			2,160		126			—		2,286			19		—		—		19		2,305
Derivative contracts financial for hedging purposes		—			—		—			—		—			20,505		3,189		136,908		160,602		160,602
Financial liabilities at amortized cost:
Current accounts and other demand deposits		13,321,660			—		—			—		13,321,660			—		—		—		—		13,321,660
Saving accounts and time deposits (***)		—			10,037,240		3,459,981			1,450,857		14,948,078			60,622		595		542		61,759		15,009,837
Obligations by repurchase agreements and securities lending		—			157,015		158			—		157,173			—		—		—		—		157,173
Borrowings from financial institutions		—			44,387		65,902			5,091,283		5,201,572			159,143		—		—		159,143		5,360,715
Debt financial instruments issued
Letters of credit		—			175		282			416		873			171		80		320		571		1,444
Bonds		—			52,443		186,629			956,608		1,195,680			2,138,820		2,075,249		3,948,872		8,162,941		9,358,621
Other financial obligations		—			339,293		—			12		339,305			—		—		—		—		339,305
Lease liabilities		—			2,181		4,314			16,655		23,150			35,619		27,835		14,876		78,330		101,480
Financial instruments of regulatory capital issued		—			1,472		—			113,256		114,728			18,826		10,216		896,044		925,086		1,039,814
Total financial liabilities		13,321,660			11,050,561		3,859,156			7,948,360		36,179,737			3,000,487		2,548,240		5,678,284		11,227,011		47,406,748

Mismatch		(10,857,012	)		1,081,970		(336,108	)		1,896,860		(8,214,290	)		5,390,270		2,360,340		7,204,601		14,955,211		6,740,921

(*)

These balances are presented without deduction of impairment, wich amount to Ch$58 million.

(**)

These balances are presented without deduction of their respective provisions, which amount to Ch$768,968 million for loans to customers and Ch$751 million for borrowings from financial institutions.

(***)

Excludes term saving accounts, which amount to Ch$355,725 million.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

46.

Financial and Non-Financial Assets and Liabilities by Currency:

As of December 31, 2024	CLP			CLF		FX Indexation		USD			COP		GBP		EUR			CHF			JPY			CNY		Others			TOTAL
	MCh$			MCh$		MCh$		MCh$			MCh$		MCh$		MCh$			MCh$			MCh$			MCh$		MCh$			MCh$
Assets
Financial assets		21,227,721			22,318,337		171,396		5,307,621			—		35,762		280,162			62,903			18,750			5,462		22,361			49,450,475
Non-Financial assets		2,153,271			49,318		11,699		429,341			—		—		1,273			—			—			—		64			2,644,966
Total Assets		23,380,992			22,367,655		183,095		5,736,962			—		35,762		281,435			62,903			18,750			5,462		22,425			52,095,441

Liabilities
Financial liabilities		25,758,304			10,716,291		176		5,624,828			—		6,837		297,367			170,907			230,051			—		845,804			43,650,565
Non-Financial liabilities		2,143,825			373,949		1,252		299,241			—		26		3,375			2			34			—		171			2,821,875
Total Liabilities		27,902,129			11,090,240		1,428		5,924,069			—		6,863		300,742			170,909			230,085			—		845,975			46,472,440

Mismatch of Financial Assets and Liabilities (*)		(4,530,583	)		11,602,046		171,220		(317,207	)		—		28,925		(17,205	)		(108,004	)		(211,301	)		5,462		(823,443	)		5,799,910

(*)

This value does not consider non-financial assets and liabilities and the notional values of derivative instruments, which are disclosed at fair value.

As of December 31, 2023	CLP			CLF		FX Indexation		USD			COP		GBP		EUR			CHF			JPY			CNY		Others			TOTAL
	MCh$			MCh$		MCh$		MCh$			MCh$		MCh$		MCh$			MCh$			MCh$			MCh$		MCh$			MCh$
Assets
Financial assets		26,148,436			21,213,688		145,584		5,593,508			—		42,300		176,380			3,988			18,085			16,225		19,698			53,377,892
Non-Financial assets		2,024,900			30,487		13,710		344,211			—		23		1,290			1			—			—		38			2,414,660
Total Assets		28,173,336			21,244,175		159,294		5,937,719			—		42,323		177,670			3,989			18,085			16,225		19,736			55,792,552

Liabilities
Financial liabilities		29,851,084			10,433,590		278		6,018,902			—		9,951		195,818			291,397			226,389			5,716		729,348			47,762,473
Non-Financial liabilities		2,184,491			350,671		721		252,956			—		47		3,811			6			12			5		74			2,792,794
Total Liabilities		32,035,575			10,784,261		999		6,271,858			—		9,998		199,629			291,403			226,401			5,721		729,422			50,555,267

Mismatch of Financial Assets and Liabilities (*)		(3,702,648	)		10,780,098		145,306		(425,394	)		—		32,349		(19,438	)		(287,409	)		(208,304	)		10,509		(709,650	)		5,615,419

(*)

This value does not consider non-financial assets and liabilities and the notional values of derivative instruments, which are disclosed at fair value.

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47.

Risk Management and Report:

(1)

Introduction:

Banco de Chile seeks to maintain a risk profile that ensures the sustainable growth that is aligned with its strategic objectives, maximizing value creation and guarantee its long-term solvency. Global risk management takes into consideration the different business segments served by the Bank, being approached from a comprehensive and differentiated perspective.

Our risk management policies are established in order to identify and analyze the risks faced by the Bank, set appropriate risk limits, alerts and controls, monitor risks and compliance with limits and alerts in order to carry out the necessary action plans. Through its administration policies and procedures, the Bank develops a disciplined and constructive control environment. Policies as well as risk management standards, procedures and systems are regularly reviewed, and with strict adherence to compliance with the current regulatory framework.

For this, the Bank has teams with extensive experience and knowledge in each area associated with risks, ensuring comprehensive and consolidated management of the same, including the Bank and its subsidiaries.

(a)

Risk Management Structure

Credit, Market and Operational Risk Management are at all levels of the Organization, with a Corporate Governance structure that recognizes the relevance of the different risk areas that exist.

The Bank’s Board of Directors as the maximum authority is responsible for establishing risk policies, the Risk Appetite Framework, and the guidelines for the measurement criteria and follow up of risks. Also, it approves the risk limits and contingency plans for each of the risks. Moreover, it approves the following policies: Credit risk policy, policy for complex products and services, operational risk policy, business continuation policy, outsourcing policy, market risk policy and liquidity risk policy.

Likewise, it approves the provision models, Additional Provisions Policy and pronounces annually on the sufficient provisions. Additionally, approves the policy of capital management for the monitoring, control, administration and the management of the bank´s capital. Also, it ratifies the strategies, functional structure and comprehensive management model of Operational Risk and guarantees the consistency of this model with the Bank’s strategy and proper implementation of the model in the organization. Along with this, it has approved the risk management policy of the model together with the development framework, validation and follow up of the models. Furthermore it establishes the Subsidiary Risk Control Policy, describing the supervision scheme that the Bank applies to the relevant subsidiaries to control the risks that affect them. For its part, the Administration is responsible both for the establishment of standards and associated procedures as well as for the control and compliance with the disposed by the Board of Directors, ensuring that there is consistency between the criteria applied by the Bank and its subsidiaries, maintaining strict coordination at the corporate level and informing the Board of Directors in the defined instances.

The Bank’s Corporate Governance considers the active participation of the Board, acting directly or through different committees made up of Directors and Senior Management. It is permanently informed and becomes aware of the evolution of the different risk management areas, participating through its Finance, International and Financial Risk, Credit, Portfolio Risk Committee, Higher Committee of Operational Risk and Capital Management, in which the status of credit, market and operational risks and the Bank’s capital management are reviewed.

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47.

Risk Management and Report, continued:

In addition to the Directors’ Committees, the Bank’s Administration has the Technical Committee for the Supervision of Internal Models, the Model Risk Management Committee and the Operational Risk Committee, related to specific matters.

The following sections describe the different committees of Directors and Administration mentioned.

Risk Management is developed by the Corporate Risk Division, which by having highly experienced and specialized teams, together with a solid regulatory framework, allows for optimal and effective management of the matters they address.

It should be noted that in August 2024, the Corporate Risk Division was established, which consolidates the previous risk divisions that existed in the bank. The division contributes to providing effective governance to the Corporation’s main risks, with a focus on optimizing the risk-return relationship, ensuring business continuity and generating a robust risk culture, identifying potential losses derived from the non-compliance of counterparties, movements in market factors or the lack of adequacy of processes, people or systems, contributing comprehensively to capital management.

Likewise, it continually manages risk knowledge from a comprehensive approach, in order to contribute to the business anticipating threats that may damage the solvency and quality of the portfolio, promoting a unique risk culture towards the Corporation through training and permanent education.

Within this Division, the Bank’s risk functions are integrated as follows, ensuring, at the same time, the correct segregation of functions and independence:

Market Risk: Is responsible for developing the function of measuring, limiting, controlling and reporting market risk, along with defining valuation standards and managing the Bank’s assets and liabilities. Moreover, this management is responsible for taking care of the compliance of market risk management policies, liquidity management, investment in debt instruments approved by the board and to communicate promptly the status of market risks in detail accordingly.

Wholesale Credit Risk Admission: is responsible for managing, resolving and controlling the approval process of businesses related to the Wholesale segment portfolio, including specific sectors and products for this portfolio, ensuring coherence, compliance and consistency of policies. of credit risk both in the bank and in its subsidiaries.

Retail Admission, Regulations and Risk Transformation: Responsible for defining the credit risk management framework, both for reactive and proactive retail origination, within the defined regulatory scope and risk appetite established by the Bank. Also, the maintenance and implementation of all credit risk strategies associated with the automatic evaluation.

Manages the regulatory body, policies, standards and procedures of credit risk, adapting the established requirements and processes, for all segments transversally in the Bank. Likewise, it carries out reviews of the quality of the credit process applied to retail banks and the continuous training of executives.

Special Asset Management: is responsible for the collection of credits from all of the Bank’s customer segments, with differentiated management in accordance with institutional policies.

In addition, it is responsible for managing the sale of assets recovered by the Bank, coming from credit recovery processes.

Risk Management Monitoring, Reporting and Control: is responsible for managing and controlling Credit Risk, especially through monitoring the main portfolio indicators and in-depth analysis of situations and scenarios of special attention, timely detecting problems that may affect certain products, debtors or sectors, with the aim of minimizing the risk assumed and anticipating situations that could lead to credit losses.

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47.

Risk Management and Report, continued:

Likewise, it manages risk information and provides it to the different government bodies and interested areas for decision-making and contributes to providing effective governance to the Corporate Risk Division projects, ensuring regulatory compliance and the correct execution of the projects. themselves, as well as being responsible for the management control of the Corporate Risk Division.

Risk Models: is responsible for developing, maintaining and updating credit risk models, whether for regulatory or management uses, in accordance with local and international regulations, determining the functional specifications and the most appropriate statistical techniques for the development of the required models. These models are immersed in the measurement and management of model risk carried out by the Model Risk and Internal Control Management, and presented to the corresponding government bodies, such as the Technical Committee for the Supervision of Internal Models, the Portfolio Risk Committee or the Board of Directors, as appropriate.

Additionally, this Area is responsible for managing the process of calculating provisions for credit risk, ensuring the correct execution of the processes and analysis of the results obtained.

Model Risk and Internal Control: Its purpose is to manage the risks associated with models and processes, for this it is supported by the functions of model validation and monitoring, model risk management, and internal control.

Conducts an independent review, evaluating the quality of the data, modeling techniques, compliance with regulatory provisions, its insertion within the institution and existing documentation. It monitors the performance of the models and monitors each stage of the life cycle of the models within its scope, with the final purpose of generating mechanisms that allow it to measure and manage the level of model risk to which the Bank is exposed.

Finally, the internal control function has the responsibility of carrying out an evaluation of the design and operational effectiveness of controls, to comply with regulatory requirements.

Global Control: Address the operational risk environment and continuity of the business. This management is responsible for managing and supervising the application of policies, standards and procedures in each of the areas within the Bank and Subsidiaries. In relation to the area of Operational Risk, it is in charge for guaranteeing the identification and efficient management of operational risks and promoting a risk culture to prevent financial losses and improve the quality of processes, proposing continuous improvements to risk management, aligned with regulatory requirements of Basel III and business objectives.

As part of the Global Control Management, there is the Business Continuity Management, which is responsible for managing, controlling and administering recovery strategies in the event of contingency situations, and is also responsible for maintaining the crisis governance model, sustains the continuity of services and related critical operations to the Bank’s payment chain, through a comprehensive and resilient model that includes plans and controlled tests in order to reduce the impact of disruptive events that may affect the bank. Additionally, there is the role and responsibilities of the Information Security Officer (ISO), with an independent function in charge of designing and implementing through monitoring of realized tasks of the organizational units responsible for the information security, cybersecurity and technological risks.

Additionally, the Bank has the Cybersecurity Division, which is responsible for defining, implementing and reporting the progress of the Strategic Cybersecurity Plan in line with the Bank’s business strategy, with one of its main focuses being to protect internal information, of its clients and collaborators.

This Division is made up of the Cybersecurity Engineering and Architecture Management, the Cyber Defense Management and the Technological Risk and Cyber Intelligence Management. The Cybersecurity Management and Subsidiaries Control Department is also part of the division, as a control unit. Section 5 of this Note describes the responsibilities of the indicated Managements.

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47.

Risk Management and Report, continued:

Committees of Directors and Bank Administration

(i) Finance, International and Financial Risk Committee

In general terms, the objectives of this committee are to monitor and continuously review the liquidity status and, trends in the most important financial positions, as well as the their associated results, and and their price and liquidity risks that will be generated. Some of its specific functions include, the review of the proposal to the Board of Directors of the Risk Appetite Framework (RAF), the Financing Plan and the structure of limits and alerts for price and liquidity risks, reviewing and approving the Comprehensive Risk Measurement (CRM) for subsequent due review in the Capital Management Committee and later approval by the Board of Directors, the design of policies and procedures related to the establishment of limits and alerts for price risk and liquidity risk; reviewing the evolution of financial positions and market risks; monitoring limit excesses and alert activations; ensuring adequate identification of risk factors in financial positions; ensuring that the price and liquidity risk management guidelines in the Bank’s subsidiaries are consistent with those of the latter, and that these are reflected in their own policies and procedures.

(ii) Credit Committees

The credit approval process is done mainly through various credit committees, which are composed of qualified professionals and with the sufficient attributions to take decisions required.

Each committee defines the terms and conditions under which the Bank accepts counterparty risks and the Corporate Risk Division participate independently and autonomously of the commercial areas. They are constituted according to the commercial segments and the amounts to approve and have different meeting periodicities.

Within the risk management structure of the Bank, the maximum approval instance is the Credit Committee of Directors. Its functions are to resolve all credit transactions associated with customers and economic groups with approved lines of credit in excess of UF750,000, and to approve all credit transactions where the bank’s internal regulations require approval from this Committee, except for any special powers delegated by the board to management.

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47.

Risk Management and Report, continued:

(iii) Portfolio Risk Committee

The Portfolio Risk Committee must understand the composition, concentration and risks attached to the bank’s loan portfolio, from a global, sectoral and business unit perspective, review and approve the comprehensive risk measurement (CRM) and the Credit Risk Appetite Framework (RAF) in the area of credit risk; It must review the main debtors, their delinquency, past-due portfolio and impairment indicators, together with the write-offs and loan portfolio provisions for each segment. It must propose differentiated management strategies, as well as analyzing and agreeing on the and analyze credit policy proposals that will be approved by theto be approved by the board of directors. This committee also reviews and ratifies the approvals of management models and methodologies Also, this committee is responsible for reviewing and ratifying the approvals of management models and methodologies previously carried out by the Technical Committee for the Supervision of Internal Models, as well as proposing the regulatory models and methodologies for final approval by the Board of Directors.

(iv) Senior Operational Risk

The Senior Operational Risk Committee makes any necessary changes to the processes, controls and information systems that support the bank’s transactions, in order to mitigate operational risks, and assure that areas can appropriately manage and control these risks.

This committee has many functions dedicated to supervising appropriate operational risk management at the bank and its subsidiaries, and for implementing the policies, standards and methods associated with the bank’s comprehensive operational risk management model. It plans initiatives to develop it and publishes them throughout the bank. It promotes a culture of operational risk management within the bank and its subsidiaries; review and approve the comprehensive risk measurement regarding Operational Risk. It approves the bank’s operational risk appetite framework; ensures compliance with the current regulatory framework, in matters that are limited to Operational Risk; become aware of the main frauds, incidents, events and their root causes, impacts and corrective measures accordingly; ensure the long-term solvency of the organization (business continuity plans, informations security and cybersecurity, controls, among others), avoiding risk factors that may jeopardize the continuity of the Bank. To decide about new products and services, and to verify the consistency of the operational risk management policies, business continuation, information security and cyber security across the bank’s subsidiaries, monitors their compliance, and reviews operational risk management at subsidiaries; become aware of the level of risk to which the bank is exposed in its outsourced services, sanction the selection of the model to carry out stress tests and scenario selection methodologies and evaluate the results, among others.

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47.

Risk Management and Report, continued:

(v) Capital Management Committee

The main purpose of this committee is to assess, monitor and review capital adequacy in accordance with the principles in the bank’s capital management policy and its risk framework, to ensure that capital resources are adequately managed, the CMF’s principles are respected, and the bank’s medium-term sustainability.

(vi) Technical Committee for the Supervision of Internal Models

Among other functions, this committee must ensure compliance with the main guidelines to be used for the construction of models; analyze the adopted criteria and review and approve methodologies associated with non-regulatory models, which must be submitted to the Portfolio Risk Committee for consideration, for final ratification; In the case of regulatory models, this Committee is limited to its review, leaving approval in the hands of the Portfolio Risk Committee and subsequently the Board of Directors. He is also in charge of ensuring compliance with the model monitoring guidelines, which are also approved by the board of directors.

(vii) Model Risk Management Committee

Its main function is to establish and supervise the model risk management framework the corresponding at the institutional level. Among other matters, this committee reviews and discusses the identification and evaluation of model risk based on aggregate results, ensures the updating of the institutional inventory of institutional models and methodologies, and submits the Model Risk Management Policy to the Board of Directors for review and approval.

(viii) Operational Risk Committee

The committee is empowered to trigger the necessary changes in the processes, procedures, controls and information systems that support the operation of Banco de Chile, in order to mitigate its operational risks, ensuring that the different areas properly manage and control these risks.

Among the main functions of the Operational Risk Committee are: the development of the comprehensive operational risk management model, including the items regarding the security of the information, continuation of the business and the suppliers where it needs to ensure the implementation and/or updating the regulatory framework related to Policies and Statutes, plans and initiatives for the development of the model and its dissemination in the organization; promote a culture of operational risk management at all levels of the Bank; become aware of the results obtained in the comprehensive measurement of operational risk; review the operational risk appetite framework; ensure the current regulatory framework in matters that are limited to operational risk; review the level of exposure to operational risk of the Bank and the main risks to which it is exposed; become aware of the main frauds, incidents, operational events and their root causes, impacts and corrective measures as appropriate, as well as operational risk assessments; propose, agree on and/or prioritize strategies to mitigate the main operational risks; ensure the long-term solvency of the organization; (plans of continuation of the business, security of the information, controles, etc.),avoiding those factors that could endanger the continuation of the bank. ensure that Operational Risk policies are aligned with the Bank’s objectives and strategies; become aware of the level of risk to which the bank is exposed in its outsourced services, among others.

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47.

Risk Management and Report, continued:

(b)

Internal Audit

The risk management processes of the entire Bank are permanently audited by the Internal Audit Area, which examines the sufficiency of the procedures and their compliance. Internal Audit discusses the results of all evaluations with the administration and reports its findings and recommendations to the Board of Directors through the Audit Committee.

(c)

Measurement Methodology

Regarding to Credit Risk, provision levels and portfolio expenses are the basic measures for determining the credit quality of our portfolio.

Banco de Chile permanently evaluates its loan portfolio, timely recognizing the associated level of risk of the loan portfolio. To this end, there are guidelines for the generation of credit risk models, covering management models (reactive and proactive admission models and collection models), provision models (both under local regulations in accordance with the instructions issued by the CMF, as well as under IFRS criteria) and stress tests that are part of the Bank’s effective equity self-assessment process. The Board of Directors approves these guidelines and the models developed.

For the purposes of covering losses in the event of customers payment default, the Bank determines the level of provisions that must be established based on the following:

Individual evaluation: mainly applies to the Bank’s portfolio of legal persons that, due to their size, complexity or indebtedness, requires a more detailed level of knowledge and a case-by-case analysis. Each debtor is assigned one of the 16 risk categories defined by the CMF, in order to establish the provisions in a timely and appropriate manner. The review of the portfolio risk classifications is carried out permanently considering the financial situation, payment behavior and the environment of each client.

Group evaluation: mainly applies to the portfolio of natural persons and smaller companies. These assessments are carried out monthly through statistical models that allow estimating the level of provisions necessary to cover the portfolio risk; in the case of commercial and mortgage portfolios, these results are contrasted with the standard models provided by the regulator, with the resulting provision being the largest between both methods. The consistency analysis of the models is carried out through an independent validation of the unit that develops them and, subsequently, through the analysis of retrospective tests that allow to compare the real losses with the expected ones. In March 2024, the CMF issued the regulations that establish the Standardized Methodology for computing Provisions for Consumer Loans, whose provisions will come into force as of the accounting close of January 2025.

In order to validate the quality and robustness of the risk assessment processes, the Bank annually performs a test of the sufficiency of provisions for the total loan portfolio, thus verifying that the provisions established are sufficient to cover the losses that could derive from the credit operations granted. The result of this analysis is presented to the Board of Directors, who manifests itself on the sufficiency of the provisions in each fiscal year.

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47.

Risk Management and Report, continued:

Banco de Chile establishes additional provisions with the objective of protecting itself from the risk of unpredictable economic fluctuations that may affect the macroeconomic environment or the situation of a specific economic sector. At least once a year, the amount of additional provisions to be constituted or released is annually proposed to the Portfolio Risk Committee and subsequently to the Board of Directors for approval.

During the 2024, the Bank maintained without modifications the amount of additional provisions established.

The monitoring and control of risks are carried out mainly based on limits established by the Board of Directors. These limits reflect the Bank’s business and market strategy, as well as the level of risk that it is willing to accept, with additional emphasis on the selected industries.

The Bank develops its capital planning process in an integrated manner with its strategic planning, in line with the risks inherent to its activity, the economic and competitive environment, its business strategy, corporate values, as well as its governance, management and risk control. As part of the capital planning process and, in line with what is required by the regulator, Risk-Weighted Assets and stress tests are obtained in the dimensions of credit, market and operational risk, as well as the Comprehensive Measurement of financial and non-financial risks.

The Bank annually reviews and updates its Risk Appetite Framework, approved by the Board of Directors, that makes possible to identify, evaluate, measure, mitigate and control proactively and in advance all relevant risks that could materialize in the normal course of their business. To this end, the Bank uses different management tools and defines an adequate structure of alerts and limits, which are part of said Framework allowing it to constantly monitor the performance of different indicators and to implement timely corrective actions, in case those are needed. The result of these activities is part of the annual self-assessment report of effective equity approved by the Board of Directors and reported to the CMF

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47.

Risk Management and Report, continued:

(2)

Credit Risk:

Credit risk considers the likelihood that the counterparty in the credit operation will not be able to fulfill its contractual obligation due to incapacity or financial insolvency, and this leads to a potential credit loss.

The Bank seeks an adequate risk-return relation and an appropriate balance of the risks assumed, through a permanent credit risk management considering the processes of admission, monitoring and recovery of the loans granted. Establishes the risk management framework for the different business segments it serves, responding to regulatory demands and commercial dynamism, being part of the digital transformation and contributing from a risk perspective to the various businesses addressed, through a vision of the portfolio that allows managing, resolving and controlling the business approval and monitoring process in an efficient and proactive manner.

In the business segments, the application of additional management processes is taken into consideration, to the extent required, for those financing requests that that will have a greater exposure to environmental and/or social risks.

The Bank integrates the socio-environmental criteria in its evaluations for the granting of financing destined to the development of projects, whether national or regional and that can generate an impact of this type, where they are executed. For the financing of projects, they must have the corresponding permits, authorizations, patents and studies, according to the impact they generate. In addition, the Bank has specialized units for serving large clients, through which the financing of project development is concentrated, including those of Public Works concessions that contemplate the construction of infrastructure, mining, electrical, real estate developments that can generate an environmental impact.

During 2024, progress was made in identifying the risks associated with climate change, generating heat maps for the individual portfolio, associated with exposure to Physical and Transition Risks. Likewise, within the framework of the development of the first National Taxonomy commanded by the Ministry of Finance, the Bank has advanced in the construction of a Classification Framework for Sustainable Financial Products and Services, with the objective of classifying the economic activities associated with said loans, using predefined selection criteria.

Credit policies and processes materialize in the following management principles, which are addressed with a specialized approach according to the characteristics of the different markets and segments served, recognizing the singularities of each one of them:

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47.

Risk Management and Report, continued:

Apply a rigorous evaluation in the admission process, based on established credit policies, standards and procedures, together with the availability of sufficient and accurate information. Thus, it corresponds to analyze the generation of flows and solvency of the client to meet their payment commitments and, when the characteristics of the operation merit it, must constitute adequate collateral that allow mitigating the risk incurred with the client.

Have permanent and robust portfolio tracking processes, through procedures and systems that alert both the potential signs of impairment of clients, with respect to the conditions of origin, and also the possible business opportunities with those that present a better payments quality and behavior.

To develop credit risk modeling guidelines, in regulatory aspects and management, for efficient decision-making at different stages of the credit process.

Have a collection structure with timely, agile and effective processes that allow management to be carried out in accordance with the different types of clients and the types of breaches that arise, always in strict adherence to the regulatory framework and the Bank’s reputational definitions.

Maintain an efficient administration in work teams organization, tools and availability of information that allow an optimal credit risk management.

Based on these management principles, the Corporate Risk Division contributes to the business and anticipates threats that may affect the solvency and quality of the portfolio, delivering timely responses to clients, maintaining the solid fundamentals that characterize the Bank’s portfolio in its different segments. and products.

The credit risk management process consists of the stages of Admission, Monitoring and Recovery or Collection for the retail and wholesale business segments served by the Bank.

(a)

Admission:

In the retail segments, admission management is carried out mainly through a risk evaluation that uses scoring tools and an appropriate credit attribution model to approve each operation. These evaluations, for natural persons without a business line and clients in the SME segment, take into consideration the level of indebtedness, the payment capacity and the maximum acceptable exposure for the client, through information on payment behavior, indebtedness in the financial system and business and financial information, as applicable.

Additionally, the bank has proactive admission processes for a diverse portfolio of clients. These consist of mass evalution of clients through statistical models of eligibility and payment capacity, generating credit offers aligned with the strategies defined. This makes possible to have preapproved credit offers available through multiple channels taking into consideration the business plan and the relation between risk and return.

182

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

While in the Wholesale segments, the management of admission is carried out through an individual analysis of the client and also the relationship with the rest of the entities of the same group that corresponds the client (if aplicable) is considered. This individual analysis or if aplicable analysis of the group, takes into consideration among other factors the capacity to generate cash, the financial situation with emphasize on the equity solvency, the levels of exposure, variables of the industry, evaluation of the shareholders and the management, the specific aspects of the operations like the structure and term of the financing, products and guarantees. The mentioned evaluation is supported by a rating model that permits greater homogeneity in the client analysis and their group.

There are also specialized areas of segments that by their nature need the knowledge of an expert, such as real estate, construction, agriculture, finance, international, among others. These experts support the preparation of the operations having certain tools designed to meet the needs of the specific characteristics of the businesses and their respective risks.

(b)

Follow Up:

From granting a credit until it expires, it is necessary to have a follow up of the behaviour and financial situation of the debtor with emphasis on its payment capacity, as the situation of the client and associated risk change over time. The follow up is an action within the credit process that permits that the bank acts in a proactive way if any signs of impairment in the portfolio at global level are detected or if the capacity of the debtor to comply with its obligations is affected.

In order to properly follow up, methodologies and tools for diverse segments that the bank participates, have been developed, those then permit a proper management of its credit portfolio.

In the retails segments, the control and follow up concentrate on monitoring the main indicators of the portfolio and analysis of the groups, reported in the management reports, generating relevant information for the decisión making in different occasions defined. At the same time special follow ups are generated according to the relevants facts of the environment.

While in the wholesale segments, in a centralized way, a permanent follow up is carried out through management tools at individual level taking into consideration the business segments, economical sectors, based on the periodically updated client and industry information. Through this process the alarms are generated that guarantee the correct and prompt recognition of the risk in the portfolio of individuals. The specific conditions established in the admission at the moment of approval like the financial covenants, coverage of certain guarantees and others, are monitored.

183

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

Additionally, in the admission area, simultaneous follow up tasks are carried out that permit the monitoring of the development of the operations from the beginning until recovering the capital, having as the objective to make sure that the portfolio´s risks are correctly and promptly identified, at the same time managing proactively the cases with higher risks.

(c)

Recovery and collection:

The Bank has specific regulations related to customer collection and normalization, which ensure the quality of the portfolio in accordance with credit policies, and the desired risk appetite framework and strict adherence to the current regulatory framework. Through collection management, the clients with temporary cash flow problems are favored, debt normalization plans are proposed for viable clients, so that it is possible to maintain the relationship in the long term once their situation is regularized. The recovery of assets at risk is maximized and the necessary collection actions are carried out, in a timely manner, to ensure the recovery of debts or reduce the potential loss.

In the retail segments, the Bank defines refinancing criteria through the establishment of predefined renegotiation guidelines to resolve the debt issues of viable clients with payment intentions, maintaining an adequate risk-return relationship, along with the incorporation of robust tools to differentiated collection management, in accordance with institutional policies and with strict adherence to the current regulatory framework.

In the wholesale segments, when detecting clients that show signs of deterioration or non-compliance with any condition, the commercial area to which the client belongs, together with the Corporate Risk Division, establish action plans for their regularization. In those cases of greater complexity where specialized management is required, the Special Asset Management area, belonging to the Corporate Risk Division, is directly in charge of collection management, establishing action plans and negotiations based on the particular characteristics of each customer.

184

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(d)

Portfolio Concentration:

The maximum exposure to credit risk, by client or counterparty, without taking into account guarantees or other credit enhancements as of December 31, 2024 and 2023, does not exceed 10% of the Bank’s effective equity.

The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2024:

	Chile		United States		England		Brazil		Others		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Financial Assets

Cash and Due from Banks		1,928,373		652,953		20,508		8		97,234		2,699,076

Financial assets held for trading at fair value through profit or loss:

Derivative contracts financial
Forwards (*)		161,046		4,215		30,380		—		32,029		227,670
Swaps (**)		927,824		57,428		917,837		—		167,392		2,070,481
Call Options		3,937		—		1,012		—		—		4,949
Put Options		250		—		3		—		—		253
Futures		—		—		—		—		—		—
Subtotal		1,093,057		61,643		949,232		—		199,421		2,303,353

Debt Financial Instruments
From the Chilean Government and Central Bank		1,495,457		—		—		—		—		1,495,457
Other debt financial instruments issued in Chile		217,948		—		—		—		—		217,948
Financial debt instruments issued Abroad		—		976		—		—		—		976
Subtotal		1,713,405		976		—		—		—		1,714,381

Others Financial Instruments
Investments in mutual funds		408,121		—		—		—		—		408,121
Equity instruments		1,039		—		—		—		—		1,039
Others		1,930		599		—		—		—		2,529
Subtotal		411,090		599		—		—		—		411,689

Financial Assets at fair value through other comprehensive income:

Debt Financial Instruments
From the Chilean Government and Central Bank		660,777		—		—		—		—		660,777
Other debt financial instruments issued in Chile		1,375,630		—		—		—		—		1,375,630
Financial debt instruments issued Abroad		—		51,938		—		—		—		51,938
Subtotal		2,036,407		51,938		—		—		—		2,088,345

Derivative contracts financial for hedging purposes
Forwards		—		—		—		—		—		—
Swaps		—		28,599		40,794		—		4,566		73,959
Call Options		—		—		—		—		—		—
Put Options		—		—		—		—		—		—
Futures		—		—		—		—		—		—
Subtotal		—		28,599		40,794		—		4,566		73,959

Financial assets at amortized cost:
Rights from resale agreements and securities lending		87,291		—		—		—		—		87,291

Debt Financial Instruments
From the Chilean Government and Central Bank		944,109		—		—		—		—		944,109
Subtotal		944,109		—		—		—		—		944,109

Loans and advances to Banks
Central Bank of Chile		—		—		—		—		—		—
Domestic banks		300,042		—		—		—		—		300,042
Foreign Banks (***)		—		—		—		269,191		98,470		367,661
Subtotal		300,042		—		—		269,191		98,470		667,703

Loans to Customers, Net
Commercial loans		19,985,358		—		—		—		119,870		20,105,228
Residential mortgage loans		13,218,586		—		—		—		—		13,218,586
Consumer loans		5,551,306		—		—		—		—		5,551,306
Subtotal		38,755,250		—		—		—		119,870		38,875,120

(*)

Others includes: France Ch$28,892 million and Spain Ch$2,313 million.

(**)

Others includes: France Ch$43,194 million, Spain Ch$31,437 million and Canada Ch$92,761 million.

(***)

Others includes: China Ch$32,260 million and Netherlands Ch$26,931 million.

185

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

	Central Bank of Chile		Government		Retail (Individuals)		Financial Services		Trade		Manufacturing		Mining		Electricity, Gas and Water		Agriculture and Livestock		Fishing		Transportation and Telecom		Construction		Services		Others		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Cash and Due from Banks	1,036,476		—		—		1,662,600		—		—		—		—		—		—		—		—		—		—		2,699,076

Financial Assets held for trading at fair value through profit or loss:
Derivative contracts Financial
Forwards		—		—		—		199,429		3,890		13,094		200		2,394		5,024		315		1,183		638		1,503		—		227,670
Swaps		—		—		—		1,972,003		1,079		7,970		—		13,947		23,613		1,756		37,459		7,758		4,896		—		2,070,481
Call Options		—		—		—		1,182		1,036		1,159		—		—		1,483		—		76		—		13		—		4,949
Put Options		—		—		—		90		137		26		—		—		—		—		—		—		—		—		253
Futures		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Subtotal		—		—		—		2,172,704		6,142		22,249		200		16,341		30,120		2,071		38,718		8,396		6,412		—		2,303,353

Debt Financial Instruments
From the Chilean Government and Central Bank		1,217,317		278,140		—		—		—		—		—		—		—		—		—		—		—		—		1,495,457
Other debt financial instruments issued in Chile		—		—		—		217,948		—		—		—		—		—		—		—		—		—		—		217,948
Financial debt instruments issued Abroad		—		—		—		976		—		—		—		—		—		—		—		—		—		—		976
Subtotal		1,217,317		278,140		—		218,924		—		—		—		—		—		—		—		—		—		—		1,714,381

Others Financial Instruments
Investments in mutual funds		—		—		—		408,121		—		—		—		—		—		—		—		—		—		—		408,121
Equity instruments		—		—		—		1,039		—		—		—		—		—		—		—		—		—		—		1,039
Others		—		—		—		2,529		—		—		—		—		—		—		—		—		—		—		2,529
Subtotal		—		—		—		411,689		—		—		—		—		—		—		—		—		—		—		411,689

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments
From the Chilean Government and Central Bank		—		660,777		—		—		—		—		—		—		—		—		—		—		—		—		660,777
Other debt financial instruments issued in Chile		—		—		—		1,342,558		5,202		—		—		11,315		11,503		—		5,052		—		—		—		1,375,630
Financial debt instruments issued Abroad		—		—		—		51,938		—		—		—		—		—		—		—		—		—		—		51,938
Subtotal		—		660,777		—		1,394,496		5,202		—		—		11,315		11,503		—		5,052		—		—		—		2,088,345

Financial Derivative contracts for hedging purposes
Forwards		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Swaps		—		—		—		73,959		—		—		—		—		—		—		—		—		—		—		73,959
Call Options		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Put Options		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Futures		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Subtotal		—		—		—		73,959		—		—		—		—		—		—		—		—		—		—		73,959

Financial assets at amortized cost (*)
Rights from resale agreements		—		—		—		82,505		—		—		—		—		—		—		—		—		4,786		—		87,291

Debt financial instruments
From the Chilean Government and Central Bank		—		944,109		—		—		—		—		—		—		—		—		—		—		—		—		944,109
Subtotal		—		944,109		—		—		—		—		—		—		—		—		—		—		—		—		944,109

Loans and advances to Banks
Central Bank of Chile		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Domestic banks		—		—		—		300,042		—		—		—		—		—		—		—		—		—		—		300,042
Foreign banks		—		—		—		367,661		—		—		—		—		—		—		—		—		—		—		367,661
Subtotal		—		—		—		667,703		—		—		—		—		—		—		—		—		—		—		667,703

(*)

Economic activity of Loans and accounts receivable from customers disclosed in Note No. 13 g).

186

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

The following tables show credit risk exposure per balance sheet item, including derivatives, detailed by both geographic region and industry sector as of December 31, 2023:

	Chile		United States		England		Brazil		Others		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Financial Assets

Cash and Due from Banks		1,536,512		811,198		27,492		9		89,437		2,464,648

Financial assets held for trading at fair value through profit or loss:

Derivative contracts financial
Forwards (*)		129,596		13,712		27,450		—		41,717		212,475
Swaps (**)		739,444		59,478		856,718		—		162,515		1,818,155
Call Options		1,939		248		955		—		293		3,435
Put Options		542		70		654		—		45		1,311
Futures		—		—		—		—		—		—
Subtotal		871,521		73,508		885,777		—		204,570		2,035,376

Debt Financial Instruments
From the Chilean Government and Central Bank		3,027,313		—		—		—		—		3,027,313
Other debt financial instruments issued in Chile		336,311		—		—		—		—		336,311
Financial debt instruments issued Abroad		—		—		—		—		—		—
Subtotal		3,363,624		—		—		—		—		3,363,624

Others Financial Instruments
Investments in mutual funds		405,752		—		—		—		—		405,752
Equity instruments		2,058		485		—		—		—		2,543
Others		844		145		—		—		44		1,033
Subtotal		408,654		630		—		—		44		409,328

Financial Assets at fair value through other comprehensive income:

Debt Financial Instruments
From the Chilean Government and Central Bank		1,837,652		—		—		—		—		1,837,652
Other debt financial instruments issued in Chile		1,741,665		—		—		—		—		1,741,665
Financial debt instruments issued Abroad		—		207,208		—		—		—		207,208
Subtotal		3,579,317		207,208		—		—		—		3,786,525

Derivative contracts financial for hedging purposes
Forwards		—		—		—		—		—		—
Swaps		—		11,975		18,712		—		18,378		49,065
Call Options		—		—		—		—		—		—
Put Options		—		—		—		—		—		—
Futures		—		—		—		—		—		—
Subtotal		—		11,975		18,712		—		18,378		49,065

Financial assets at amortized cost:
Rights from resale agreements and securities lending		71,822		—		—		—		—		71,822

Debt Financial Instruments
From the Chilean Government and Central Bank		1,431,141		—		—		—		—		1,431,141
Subtotal		1,431,141		—		—		—		—		1,431,141

Loans and advances to Banks
Central Bank of Chile		2,100,933		—		—		—		—		2,100,933
Domestic banks		—		—		—		—		—		—
Foreign Banks (***)		—		—		436		205,362		213,200		418,998
Subtotal		2,100,933		—		436		205,362		213,200		2,519,931

Loans to Customers, Net
Commercial loans		19,969,857		—		—		—		21,257		19,991,114
Residential mortgage loans		12,303,154		—		—		—		—		12,303,154
Consumer loans		5,306,436		—		—		—		—		5,306,436
Subtotal		37,579,447		—		—		—		21,257		37,600,704

(*)	Others includes: France Ch$33,034 million and Spain Ch$7 million.

(**)	Others includes: France Ch$38,199 million and Spain Ch$31,881 million.

(***)

Others includes: China Ch$109,229 million.

187

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

	Central Bank of Chile		Government		Retail (Individuals)		Financial Services		Trade		Manufacturing		Mining		Electricity, Gas and Water		Agriculture and Livestock		Fishing		Transportation and Telecom		Construction		Services		Others		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Cash and Due from Banks		590,426		—		—		1,874,222		—		—		—		—		—		—		—		—		—		—		2,464,648

Financial Assets held for trading at fair value through profit or loss:
Derivative contracts financial
Forwards		—		—		—		124,644		15,853		6,396		132		1,834		3,529		3		1,074		1,589		57,421		—		212,475
Swaps		—		—		243		1,739,380		2,610		10,797		—		15,664		3,848		2,609		24,116		14,914		3,974		—		1,818,155
Call Options		—		—		—		1,899		422		252		—		—		834		—		—		—		28		—		3,435
Put Options		—		—		—		809		277		212		—		—		—		—		—		—		13		—		1,311
Futures		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Subtotal		—		—		243		1,866,732		19,162		17,657		132		17,498		8,211		2,612		25,190		16,503		61,436		—		2,035,376

Debt Financial Instruments
From the Chilean Government and Central Bank		2,799,442		227,871		—		—		—		—		—		—		—		—		—		—		—		—		3,027,313
Other debt financial instruments issued in Chile		—		—		—		336,311		—		—		—		—		—		—		—		—		—		—		336,311
Financial debt instruments issued Abroad		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Subtotal		2,799,442		227,871		—		336,311		—		—		—		—		—		—		—		—		—		—		3,363,624

Others Financial Instruments
Investments in mutual funds		—		—		—		405,752		—		—		—		—		—		—		—		—		—		—		405,752
Equity instruments		—		—		—		2,543		—		—		—		—		—		—		—		—		—		—		2,543
Others		—		—		—		1,033		—		—		—		—		—		—		—		—		—		—		1,033
Subtotal		—		—		—		409,328		—		—		—		—		—		—		—		—		—		—		409,328

Financial Assets at fair value through Other Comprehensive Income
Debt Financial Instruments
From the Chilean Government and Central Bank		473,642		1,364,010		—		—		—		—		—		—		—		—		—		—		—		—		1,837,652
Other debt financial instruments issued in Chile		—		—		—		1,457,305		17,791		—		—		12,507		7,277		—		4,837		—		—		241,948		1,741,665
Financial debt instruments issued Abroad		—		—		—		207,208		—		—		—		—		—		—		—		—		—		—		207,208
Subtotal		473,642		1,364,010		—		1,664,513		17,791		—		—		12,507		7,277		—		4,837		—		—		241,948		3,786,525

Derivative contracts financial for hedging purposes
Forwards		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Swaps		—		—		—		49,065		—		—		—		—		—		—		—		—		—		—		49,065
Call Options		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Put Options		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Futures		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Subtotal		—		—		—		49,065		—		—		—		—		—		—		—		—		—		—		49,065

Financial assets at amortized cost (*)
Rights from resale agreements		—		—		—		71,420		—		—		—		—		—		—		—		—		402		—		71,822

Debt financial instruments
From the Chilean Government and Central Bank		507,261		923,880		—		—		—		—		—		—		—		—		—		—		—		—		1,431,141
Subtotal		507,261		923,880		—		—		—		—		—		—		—		—		—		—		—		—		1,431,141

Loans and advances to Banks
Central Bank of Chile		2,100,933		—		—		—		—		—		—		—		—		—		—		—		—		—		2,100,933
Domestic banks		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Foreign banks		—		—		—		418,998		—		—		—		—		—		—		—		—		—		—		418,998
Subtotal		2,100,933		—		—		418,998		—		—		—		—		—		—		—		—		—		—		2,519,931

(*)

Economic activity of Loans and accounts receivable from customers disclosed in Note No. 13 g).

188

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(e)

Collaterals and Other Credit Enhancements:

The amount and type of collateral required depends on the counterparty’s credit risk assessment.

The Bank has guidelines regarding the acceptability of types of collateral and valuation parameters.

The main types of collateral obtained are:

●

For commercial loans: Residential and non-residential real estate, liens and inventory.

●

For retail loans: Mortgages loans on residential property.

The Bank also obtains collateral from parent companies for loans granted to their subsidiaries.

Management makes sure its collateral is acceptable according to both external standards and internal policies guidelines and parameters. The Bank has approximately 248,807 collateral assets as of December 31, 2024 (246,063 in December 2023), the majority of which consist of real estate. The following table contains guarantees value:

			Guarantee
December 2024	Loans		Mortgages		Pledges		Securities		Warrants		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Corporate Lending		15,278,242		3,985,392		137,504		559,132		1,345		4,683,373
Small Business Lending		4,826,986		3,465,474		14,464		10,240		—		3,490,178
Consumer Lending		5,551,306		387,195		552		2,500		—		390,247
Mortgage Lending		13,218,586		12,711,594		120		—		—		12,711,714
Total		38,875,120		20,549,655		152,640		571,872		1,345		21,275,512

			Guarantee
December 2023	Loans		Mortgages		Pledges		Securities		Warrants		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Corporate Lending		15,149,334		4,157,394		204,423		610,957		3,503		4,976,277
Small Business Lending		4,841,780		3,330,145		16,097		10,464		—		3,356,706
Consumer Lending		5,306,436		363,923		607		2,633		—		367,163
Mortgage Lending		12,303,154		11,743,317		114		—		—		11,743,431
Total		37,600,704		19,594,779		221,241		624,054		3,503		20,443,577

The Bank also uses mitigating tactics for credit risk on derivative transactions. To date, the following mitigating tactics are used:

●

Accelerating transactions and net payment using market values at the date of default of one of the parties.

●

Option for both parties to terminate early any transactions with a counterparty at a given date, using market values as of the respective date.

Margins established with time deposits by customers who have FX forwards with subsidiary Banchile Corredores de Bolsa S.A.

189

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(e)

Collaterals and Other Credit Enhancements, continued:

The value of the guarantees that the Bank maintains related to the loans individually classified as impaired as of December 31, 2024 and 2023 amounted Ch$183,021 million and Ch$140,371 million, respectively.

The value guarantees related to past due loans but no impaired as of December 31, 2024 and 2023 amounted Ch$521,142 million and Ch$459,858 million respectively.

(f)

Credit Quality by Asset Class:

The Bank determines the credit quality of financial assets using internal credit ratings. The rating process is linked to the Bank’s approval and monitoring processes and is carried out in accordance with risk categories established by current standards. Credit quality is continuously updated based on any favorable or unfavorable developments to customers or their environments, considering aspects such as commercial and payment behavior as well as financial information.

The Bank also carries out reviews focused on companies that participate in specific economic sectors, which are affected either by macroeconomic variables or variables of the sector. In this way, it is possible to timely establish the necessary and sufficient level of provisions to cover the losses due to the eventual non-recoverability of the credits granted.

The credit quality by asset class for Consolidated Statements of Financial Position sheet items, based on the Bank’s credit rating system, is presented in Note No. 13 letter (d).

Below is the detail of the default but not impaired portfolio:

	Past due but no impaired (*)
	1 to 29 days		30 to 59 days		60 to 89 days		90 or more days
	MCh$		MCh$		MCh$		MCh$

December 2024		837,159		207,787		62,454		—
December 2023		729,515		201,364		65,003		—

(*)

These amounts include the overdue portion and the remaining balance of loans in default.

(g)

Assets Received in Lieu of Payment:

The Bank has received assets in lieu of payment totaling Ch$32,929 million and Ch$21,396 million as of December 31, 2024 and December 31, 2023, respectively, the majority of which are properties. All of these assets are managed for sale.

190

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(h)

Renegotiated Assets:

The loans are presented as renegotiated in the balance sheet correspond to those in which the corresponding financial commitments have been restructured and the Bank assesses the probability of recovery as sufficiently high.

The following table details the book value of loans with renegotiated terms per financial asset class:

	2024		2023
	MCh$		MCh$
Financial Assets
Loans and advances to banks
Central Bank of Chile		—		—
Domestic banks		—		—
Foreign banks		—		—
Subtotal		—		—

Loans to customers, net
Commercial loans		484,156		445,462
Residential mortgage loans		299,599		266,920
Consumer loans		369,183		306,632
Subtotal		1,152,938		1,019,014
Total renegotiated financial assets		1,152,938		1,019,014

(i)

Compliance with credit limit granted to related debtors:

Below are detailed the figures for compliance with the credit limit granted to debtors related to the ownership or management of the Bank and subsidiaries, in accordance with the Article 84 No. 2 of the General Banking Law, which establishes that in no case the total of these credits may exceed the amount of its Total or Regulatory Capital:

	December 2024			December 2023
	MCh$			MCh$

Total related debt		579,923			476,459
Consolidated Total or Regulatory Capital		6,955,292			6,578,584
Limit used %		8.34	%		7.24	%

191

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk:

Market Risk refers to the loss that the Bank could face due to a liquidity shortage to honor the payments, or to close financial transactions in a timely manner (Liquidity Risk), or due to adverse movements in the values of market variables (Risk Price). For its correct management, the guidelines of the Liquidity Risk Management Policy and the Market Risk Management Policy are considered, both are subject to review, at least annually, by the Market Risk Manager and approval by the Bank’s Board of Directors, at least annually.

Liquidity Risk:

Liquidity Risk Measurement and Limits

The Bank manages the Liquidity Risk in accordance with the established on the Liquidity Risk Management Policy, managing separately for each sub-category thereof; this is for Trading Liquidity Risk and Funding Liquidity Risk.

Trading Liquidity Risk is the inability to close, at current market prices, the financial positions opened mainly from the Trading Book (which is daily valued at market prices and the value differences instantly reflected in the Income Statement). This risk is controlled by establishing limits on the positions amounts of the Trading Book in accordance with what is estimated to be closed in a short time period. Additionally, the Bank incorporates a negative impact on the Income Statement whenever it considers that the size of a certain position in the Trading Book exceeds the reasonable amount, negotiated in the secondary markets, which would allow the exposure to be offset without altering market prices.

Funding Liquidity Risk refers to the Bank’s inability to obtain sufficient cash to meet its immediate obligations. This risk is managed by a minimum amount of highly liquid assets called liquidity buffer, and establishing limits and controls of internal metrics, among which the Market Access Report (“MAR”) stands out, which estimates the amount of funding that the Bank would need from wholesale financial counterparties, for the next 30 and 90 days in each of the relevant currencies of the balance sheet, to face a cash need as a result of the operation under business as usual conditions.

192

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

The use as of December within 2024 is illustrated below (LCCY = local currency; FCCY = foreign currency):

	MAR LCCY + FCCY BCh$				MAR FCCY MUS$
	1 - 30 days		1 - 90 days			1 - 30 days
Maximum		2,776		4,487	Maximum		842
Minimum		567		2,826	Minimum		(358	)
Average		1,602		3,771	Average		191

The Bank also monitors the amount of assets denominated in local currency that is funded by liabilities denominated in foreign currency, including all tenors and the cash flows generated by full delivery derivatives payments. This metric is referred to as Cross Currency Funding. The bank oversees and limits this amount in order to take precautions against not only Banco de Chile’s event but also against a systemic adverse environment generated by a country risk event that might trigger lack of foreign currency funding.

The use of Cross Currency Funding within the year 2024 is illustrated below:

	Cross Currency Funding MUS$
Maximum		1,471
Minimum		112
Average		737

The Bank establishes thresholds that alert behaviors outside the expected ranges at a normal or prudent level of operation, in order to protect other dimensions of liquidity risk such as, for example, maturities concentration of fund providers, the diversification of sources of funds either by type of counterparty or type of product, among others.

The evolution over time of the statement of financial ratios of the Bank is monitored in order to detect structural changes in the characteristics of the balance sheet, such as those presented in the following table and whose relevant values of use during the year 2024 are shown below:

	Funding Financial Counterparties / Assets			Deposits/ Loans

Maximum		35	%		65	%
Minimum		31	%		60	%
Average		33	%		63	%

193

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

Additionally, some market index, prices and monetary decisions taken by the Central Bank of Chile are monitored to detect structural changes in market conditions that can trigger a liquidity shortage or even a financial crisis.

Furthermore, the Liquidity Risk Management Policy enforces to perform stress tests periodically which are controlled against potentially accessible action plans in each modeled scenario, according with the guidelines established in the Liquidity Contingency Plan. This process is essential in determining the liquidity risk appetite framework of the institution.

The Bank measures and controls the mismatch of cash flows under regulatory standards with the C46 index report, which represents the net cash flows expected over time as a result of the contractual maturity of almost all assets and liabilities. Additionally, the Commission for the Financial Market (hereinafter, “CMF”) authorized Banco de Chile, among others, to report the adjusted C46 index. This allows the Bank to report, in addition to the regular C46 index, outflow behavior assumptions of certain specific elements of the liability, such as demand deposits and time deposits. In addition, the regulator also requires some rollover assumptions for the loan portfolio.

To date, the CMF establish the following dispositions for the C46 index:

Foreign Currency balance sheet items: 1-30 days, Regulatory Limit C46 index < 1 x Tier-1 Capital

The levels of use of this index during the year 2024 is illustrated below:

	Adjusted C46 CCY and FCCY as part of Basic Capital						Adjusted C46 FCCY as part of Basic Capital
	1 - 30 days			1 - 90 days			1 - 30 days

Maximum		0.28			0.19			0.17
Minimum		(0.12	)		(0.15	)		0.05
Average		0.09			0.04			0.11
Regulatory Limit		N/A			N/A			1.0

194

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

The individual and consolidated term liquidity gap are presented below:

QUARTERLY STATEMENT OF INDIVIDUAL LIQUIDITY SITUATION

AS OF DECEMBER 31, 2024 CONTRACTUAL BASIS

Values in MCh$

CONSOLIDATED CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		7,290,736		9,752,494		10,718,420		14,322,153
Cash flow payable (liabilities) and expenses		18,893,992		21,207,713		24,766,475		28,547,005
Liquidity Gap		11,603,256		11,455,219		14,048,055		14,224,852

FOREIGN CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		1,242,712		1,583,584		1,498,776		2,131,992
Cash flow payable (liabilities) and expenses		2,560,748		2,817,984		3,299,602		3,820,926
Liquidity Gap		1,318,036		1,234,400		1,800,826		1,688,934

Limits:
One time capital						5,511,914
AVAILABLE MARGIN						3,711,088

In the limit up to 30 days, in consolidated currency, the Bank has a liquidity situation of Ch$4,272,394,620,745.

QUARTERLY STATEMENT OF INDIVIDUAL LIQUIDITY SITUATION

AS OF DECEMBER 31, 2024 ADJUSTED BASIS

Values in MCh$

CONSOLIDATED CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		7,043,117		9,088,648		9,541,175		11,898,750
Cash flow payable (liabilities) and expenses		8,785,409		9,593,756		10,977,748		13,128,996
Liquidity Gap		1,742,292		505,108		1,436,573		1,230,246

FOREIGN CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		1,179,186		1,361,969		1,131,049		1,314,079
Cash flow payable (liabilities) and expenses		1,534,143		1,691,583		2,013,567		2,441,066
Liquidity Gap		354,957		329,614		882,518		1,126,987

Limits:
One time capital						5,511,914
AVAILABLE MARGIN						4,629,396

In the limit up to 30 days, in consolidated currency, the Bank has a liquidity situation of Ch$4,969,011,204,151.

195

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

QUARTERLY STATEMENT OF CONSOLIDATED LIQUIDITY SITUATION

AS OF DECEMBER 31, 2024 CONTRACTUAL BASIS

Values in MCh$

CONSOLIDATED CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		7,979,272		10,473,524		11,457,478		15,093,148
Cash flow payable (liabilities) and expenses		19,404,673		21,718,394		25,279,940		29,060,535
Liquidity Gap		11,425,401		11,244,870		13,822,462		13,967,387

FOREIGN CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		1,242,777		1,583,650		1,498,841		2,132,057
Cash flow payable (liabilities) and expenses		2,560,748		2,817,984		3,299,602		3,820,992
Liquidity Gap		1,317,971		1,234,334		1,800,761		1,688,935

Limits:
One time capital						5,511,914
AVAILABLE MARGIN						3,711,153

In the limit up to 30 days, in consolidated currency, the Bank has a liquidity situation of Ch$4,272,436,457,280,

QUARTERLY STATEMENT OF CONSOLIDATED LIQUIDITY SITUATION

AS OF DECEMBER 31, 2024 ADJUSTED BASIS

Values in MCh$

CONSOLIDATED CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		7,731,653		9,809,678		10,280,233		12,669,745
Cash flow payable (liabilities) and expenses		9,296,090		10,104,437		11,491,213		13,642,526
Liquidity Gap		1,564,437		294,759		1,210,980		972,781

FOREIGN CURRENCY	From 0 to 7 days		From 0 to 15 days		From 0 to 30 days		From 0 to 90 days

Cash flow receivable (assets) and income		1,179,252		1,362,035		1,131,114		1,314,144
Cash flow payable (liabilities) and expenses		1,534,143		1,691,583		2,013,567		2,441,132
Liquidity Gap		354,891		329,548		882,453		1,126,988

Limits:
One time capital						5,511,914
AVAILABLE MARGIN						4,629,461

In the limit up to 30 days, in consolidated currency, the Bank has a liquidity situation of Ch$4,969,053,040,687.

196

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

Liquid Assets Consolidated Balance Statement as of December 31, 2024, values in BCh$

Source: Financial Statements Banco de Chile as of December 31, 2024

Additionally, the regulatory entities have introduced other metrics that the Bank uses in its management, such as the Liquidity Coverage Ratio (“LCR”) and Net Stable Financing Ratio (“NSFR”), using assumptions similar to those used in the international banking. For the first, the minimum level required is 1 time (100%) of the LCR indicator, while for the second the limit requirement is 0.8 times (80%) of the NSFR indicator. The evolution of the LCR and NSFR metrics during the year 2024 are shown below:

	LCR		NSFR

Maximum		2.56		1.25
Minimum		1.94		1.20
Average		2.25		1.22
Regulatory Limit		1.0		0.8	(*)

(*)

By transitory disposition of the Central Bank of Chile, in Chapter III.B.2.1 of the Compendium of Accounting Standards for Banks, this limit will gradually increase until reaching 1.0 in January 2026.

197

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(a)

Liquidity Risk, continued:

The contractual maturity profile of the financial liabilities of Banco de Chile and its subsidiaries (consolidated basis), to December 2024 and 2023, is as follows:

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities as of December 31, 2024
Transactions in the course of payment		283,605		—		—		—		—		—		283,605
Full delivery derivative transactions		728,329		328,138		972,304		1,202,183		861,833		1,490,511		5,583,298
Financial liabilities at amortized cost:
Current accounts and other demand deposits		14,263,303		—		—		—		—		—		14,263,303
Saving accounts and time deposits		9,437,781		2,670,440		2,138,233		56,593		450		562		14,304,059
Obligations by repurchase agreements and securities lending		109,280		66		527		—		—		—		109,873
Borrowings from financial institutions		22,207		159,438		921,822		—		—		—		1,103,467
Debt financial instruments issued (all currencies)		13,893		158,375		1,178,285		2,983,446		2,328,034		4,472,111		11,134,144
Other financial obligations		284,479		—		—		—		—		—		284,479
Financial instruments of regulatory capital issued (subordinated bonds)		3,140		—		48,654		92,974		89,437		1,153,294		1,387,499
Total (excluding non-delivery derivative transactions)		25,146,017		3,316,457		5,259,825		4,335,196		3,279,754		7,116,478		48,453,727

Non-delivery derivative transactions		153,172		399,612		1,201,809		1,385,711		894,295		1,912,040		5,946,639

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities as of December 31, 2023
Transactions in the course of payment		356,871		—		—		—		—		—		356,871
Full delivery derivative transactions		449,301		883,862		946,696		1,138,243		738,806		1,481,105		5,638,013
Financial liabilities at amortized cost:
Current accounts and other demand deposits		13,321,660		—		—		—		—		—		13,321,660
Saving accounts and time deposits		10,432,630		3,515,344		1,517,789		66,062		595		542		15,532,962
Obligations by repurchase agreements and securities lending		156,846		158		—		—		—		—		157,004
Borrowings from financial institutions		44,475		65,210		5,079,495		157,383		—		—		5,346,563
Debt financial instruments issued (all currencies)		55,897		196,986		1,097,658		2,537,939		2,351,864		4,422,665		10,663,009
Other financial obligations		338,891		—		24		—		—		—		338,915
Financial instruments of regulatory capital issued (subordinated bonds)		3,006		—		46,575		95,774		85,615		1,146,822		1,377,792
Total (excluding non-delivery derivative transactions)		25,159,577		4,661,560		8,688,237		3,995,401		3,176,880		7,051,134		52,732,789

Non-delivery derivative transactions		339,148		339,427		1,033,954		1,245,586		964,056		1,879,807		5,801,978

198

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk:

The Price Risk measurement and management processes are carried out in accordance with the established on the Market Risk Management Policy, by using internal metrics developed by the Bank, both for the Trading Book and for the Banking Book (the Banking Book includes all balance sheet items, including those in the Trading Book but in such case these are reported at an interest rate adjustment term of one day, thus not generating accrual interest rate risk). In addition, the portfolio recorded under the Fair Value Through Other Comprehensive Income (hereinafter FVOCI) is considered, which is a sub-set of the Banking Book, which given its nature is relevant to measure it independently. In addition, the Bank reports metrics to regulatory entities according to the models defined by them.

The Bank has established internal limits for the exposures of the Trading Book. In fact, FX positions (FX delta), interest rate sensitivities generated by the derivatives and debt securities portfolios (DV01 or also referred as to rho) and the FX options volatility sensitivity (vega) are measured, reported and controlled against their limits. Limits are established on an aggregate basis but also for some specific tenor points. The use of these limits is daily monitored, controlled and reported by independent control functions to the senior management of the bank. The internal governance framework also establishes that these limits must be approved by the board and reviewed at least annually.

The Bank measures and controls the risk for the Trading Book portfolios using the Value-at-Risk (VaR). The model uses a 99% confidence level and the most recent one-year observed rates, prices and yields data.

The use of VaR within the year 2024 is illustrated below:

	Value-at-Risk 99% one-day confidence level MCh$

Maximum		2,605
Minimum		334
Average		1,078

Additionally, the Bank performs measuring, limiting, controlling and reporting interest rate exposures and risks for the Banking Book using internally developed methodologies based on the differences in the amounts of assets and liabilities considering the interest rate repricing dates. Exposures are measured according to the Interest Rate Exposure or IRE metric and their corresponding risks using the Earnings-at-Risk or EaR metric. Within these metrics, Prepayment Risk is considered, which corresponds to the customer’s ability to pay, totally or partially, their debt before maturity. For this, a loan flow allocation model is generated with exposure to interest rate fluctuations, according to their prepayment behavior, finally reflecting a decrease in their average maturity term.

199

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

The use of EaR within the year 2024 is illustrated below:

	12- months Earnings-at-Risk 99% confidence level 3 months closing period MCh$

Maximum		260,728
Minimum		175,971
Average		242,263

The regulatory risk measurement for the Trading Book (Market Risk Weighted Assets report or mRWA) is produced by utilizing guidelines provided by the Central Bank of Chile (hereinafter, “BCCh”) and the CMF. The referred methodologies estimate the potential loss that the bank may incur considering standardized fluctuations of the value of market factors such as FX rates, interest rates and volatilities that may adversely impact the value of FX spot positions, interest rate exposures, and volatility exposures, respectively. Interest rates changes are provided by the regulatory entity; moreover, correlation factors and very conservative term are included to explain non-parallel changes in the yield curve.

The risk measurement for the Banking Book, according to regulatory guidelines (RMLB report by its Spanish initials), as a result of interest rate fluctuations is carried out through the use of standardized methodologies provided by regulatory entities (BCCh and CMF). The report includes models for reporting interest rate gaps and how their value varies, according to rate fluctuations that are defined by the scenarios provided by the regulations. In addition to this, the regulatory entity has requested banks to establish internal limits, separately for short-term and long-term balances, NII and EVE respectively, for these regulatory measurements.

The results effectively realized during the month for trading activities are controlled against defined loss levels and if these levels are exceeded, senior management is notified in order to evaluate potential corrective actions.

Finally, the Market Risk Management Policy of Banco de Chile enforces to perform daily stress tests for the Trading Book and monthly for the Banking Book. Additionally, the stress test for the FVOCI portfolio is included, which is reported daily. The output of the stress testing process is monitored against corresponding alert levels; in the case those triggers are breached, the senior management is notified in order to implement further actions, if necessary. Additionally, these book tests are a fundamental part of establishing the Bank’s price risk appetite framework.

200

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Assets as of December 31, 2024
Cash and due from banks		2,677,676		—		—		—		—		—		2,677,676
Transactions in the course of collection		382,677		—		—		—		—		—		382,677
Financial assets at fair value through other comprehensive income:
Debt financial instruments		143,990		272,612		867,605		490,101		217,174		96,808		2,088,290
Derivative financial instruments for hedging purposes		747		8,544		311,890		442,555		337,594		893,516		1,994,846
Financial assets at amortized cost:
Rights from resale agreements and securities lending		—		—		—		—		—		—		—
Debt financial instruments		—		25,951		11,478		500,385		159,001		306,586		1,003,401
Loans and advances to Banks		398,595		58,098		216,769		—		—		—		673,462
Loans to customers, net		5,417,405		3,126,005		8,684,037		8,875,282		5,369,386		15,070,223		46,542,338
Total Assets		9,021,090		3,491,210		10,091,779		10,308,323		6,083,155		16,367,133		55,362,690

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Assets as of December 31, 2023
Cash and due from banks		2,441,580		—		—		—		—		—		2,441,580
Transactions in the course of collection		403,734		—		—		—		—		—		403,734
Financial assets at fair value through other comprehensive income:
Debt financial instruments		282,697		748,488		1,864,717		461,590		270,129		157,313		3,784,934
Derivative financial instruments for hedging purposes		773		5,738		208,234		328,274		531,229		929,754		2,004,002
Financial assets at amortized cost:
Rights from resale agreements and securities lending		74,796		—		—		—		—		—		74,796
Debt financial instruments		—		9,012		530,044		503,956		159,932		312,570		1,515,514
Loans and advances to Banks		2,216,985		74,312		233,533		—		—		—		2,524,830
Loans to customers, net		5,464,339		2,859,489		8,212,594		9,064,150		5,082,957		14,106,472		44,790,001
Total Assets		10,884,904		3,697,039		11,049,122		10,357,970		6,044,247		15,506,109		57,539,391

201

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities as of December 31, 2024
Transactions in the course of payment		297,983		—		—		—		—		—		297,983
Derivative Financial Instruments for hedging purposes		1,588		2,755		303,336		381,790		343,096		1,133,338		2,165,903
Financial liabilities at amortized cost:
Current accounts and other demand deposits		14,287,507		—		—		—		—		—		14,287,507
Saving accounts and time deposits		9,437,781		2,670,440		2,138,233		56,593		450		562		14,304,059
Obligations by repurchase agreements and securities lending		9,984		—		—		—		—		—		9,984
Borrowings from financial institutions		21,222		159,438		921,822		—		—		—		1,102,482
Debt financial instruments issued (*)		13,893		158,375		1,178,285		2,983,446		2,328,034		4,472,111		11,134,144
Other financial obligation		284,479		—		—		—		—		—		284,479
Financial instruments of regulatory capital issued (subordinated bonds)		3,140		—		48,654		92,974		89,437		1,153,294		1,387,499
Total liabilities		24,357,577		2,991,008		4,590,330		3,514,803		2,761,017		6,759,305		44,974,040

	Up to 1 month		1 to 3 months		3 to 12 months		1 to 3 years		3 to 5 years		Over 5 years		Total
	MCh$		MCh$		MCh$		MCh$		MCh$		MCh$		MCh$
Liabilities as of December 31, 2023
Transactions in the course of payment		317,056		—		—		—		—		—		317,056
Derivative Financial Instruments for hedging purposes		1,508		1,777		179,604		319,178		498,973		1,245,545		2,246,585
Financial liabilities at amortized cost:
Current accounts and other demand deposits		13,352,234		—		—		—		—		—		13,352,234
Saving accounts and time deposits		10,432,630		3,515,344		1,517,789		66,062		595		542		15,532,962
Obligations by repurchase agreements and securities lending		10,450		—		—		—		—		—		10,450
Borrowings from financial institutions		44,475		65,210		5,079,495		157,383		—		—		5,346,563
Debt financial instruments issued (*)		55,897		196,986		1,097,658		2,537,939		2,351,864		4,422,665		10,663,009
Other financial obligation		338,891		—		24		—		—		—		338,915
Financial instruments of regulatory capital issued (subordinated bonds)		3,006		—		46,575		95,774		85,615		1,146,822		1,377,792
Total liabilities		24,556,147		3,779,317		7,921,145		3,176,336		2,937,047		6,815,574		49,185,566

(*)

Amounts shown here are different from those reported in the liabilities report which is part of the liquidity analysis, due to differences in the treatment of mortgage bonds issued by the Bank in both reports.

202

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47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

Price Risk Sensitivity Analysis

The Bank uses stress tests as the main sensitivity analysis tool for Price Risk. The analysis is implemented for the Trading Book, Banking Book and the FVOCI portfolio separately. The Bank has adopted this tool as it is considered more useful than fluctuations in business as usual scenario, such as VaR or EaR, given that:

(i)

The financial crisis show market factors fluctuations that are materially larger than those used in the VaR with 99% of confidence level or EaR with 99% of confidence level.

(ii)

The financial crisis also show that correlations between these fluctuations are materially different from those used in the VaR computation, since a crisis precisely indicates severe disconnections between the behaviors of market factors fluctuations respect to the patterns observed under normal conditions.

(iii)

Trading liquidity dramatically diminishes during financial distress and especially in emerging markets. Therefore, the overnight VaR number might not be representative of the loss for trading portfolios in such environment since closing exposures period may exceed one business day. This may also happen when calculating EaR, even considering three months as the closing period.

The impacts are determined by mathematical simulations of fluctuations in the values of market factors, and also, estimating the changes of the economic and /or accounting value of the financial positions.

203

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47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

In order to comply with IFRS 9, the following exercise was included illustrating an estimation of the impact of extreme but reasonable fluctuations of interest rates, swaps yields, FX rates and exchange volatility, which are used for valuing Trading Book, Banking Book and the FVOCI portfolio. Given that the Bank’s portfolio includes positions denominated in nominal and real interest rates, these fluctuations must be aligned with extreme but realistic Chilean inflation changes forecasts.

For the Trading Book, the exercise is implemented by multiplying the sensitivities by the fluctuations obtained as the results of mathematical simulations over a two-week time horizon and using the maximum historical volatility, within a significant period of time, in each of the market factor present. In the case of the FVOCI portfolio a four-week time horizon is used due to liquidity constrains; Banking Book impacts are estimated by multiplying cumulative gaps by forward interest rates fluctuations modeled over a three-month time horizon and using the maximum historical volatility of interest fluctuations but limited by maximum fluctuations and / or levels observed within a significant period of time. It is relevant to note that the methodology might ignore some portion of the interest rates convexity, since it is not captured properly when large fluctuations are modeled. In any case, given the magnitude of the changes, the methodology may be reasonable enough for the purposes and scope of the analysis.

The following table illustrates the fluctuations resulting from the main market factors in the maximum stress test exercise, or more adverse, for the Trading Book.

The directions or signs of these fluctuations are those that correspond to those that generate the most adverse impact at the aggregate level.

Average Fluctuations of Market Factors for Maximum Stress Scenario Trading Book
	CLP Derivatives (bps)			CLP Bonds (bps)		CLF Derivatives (bps)			CLF Bonds (bps)		USD Offshore SOFR Derivatives (bps)			Spread USD On/Off Derivatives (bps)
Less than 1 year		0			238		133			253		(6	)		(18	)
Greater than 1 year		(15	)		133		(18	)		125		9			14

bps = basis points.

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47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

The worst impact on the Bank’s Trading Book as of December 31, 2024, as a result of the simulation process described above, is as follows:

Most Adverse Stress Scenario P&L Impact Trading Book (MCh$)
CLP Interest Rate			(12,529	)
Derivatives	(602	)
Debt instruments	(11,927	)
CLF Interest Rate			(3,051	)
Derivatives	105
Debt instruments	(3,156	)
Interest rate USD offshore			33
Domestic/offshore interest rate spread USD			(123	)

Total Interest rates			(15,670	)
Banking spread			(58	)
Total FX and FX Options			(80	)
Total			(15,808	)

The modeled scenario would generate losses in the Trading Book for Ch$15,808 million. In any case, such fluctuations would not result in material losses compared to Basic Capital or to the P&L estimate for the next 12-months.

The impact on the Banking Book as of December 31, 2024, which does not necessarily mean a net loss(gain) but a lower (greater) net income from funds generation (resulting net interest rate generation), is illustrated below:

Most Adverse Stress Scenario 12-Month Revenue Banking Book (MCh$)
Impact by Base Interest Rate shocks	(220,830	)
Impact due to Spreads Shocks	(44,335	)
Higher / (Lower) Net revenues	(265,165	)

205

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47.

Risk Management and Report, continued:

(3)

Market Risk, continued:

(b)

Price Risk, continued:

The impact on the FVOCI portfolio it is show in the followings tables. First are the main fluctuation in the market factors, due to the scenarios provided for the stress test meltdown (more adverse), for this portfolio.

The sign of the fluctuation below, correspond to the ones that generate the most adverse impact.

Average Fluctuations of Market Factors for Maximum Stress Scenario FVOCI Portfolio
	CLP Bonds (bps)		CLF Bonds (bps)		USD Offshore SOFR Derivatives (bps)			Spread USD On/Off Derivatives (bps)
Less than 1 year		318		366		(8	)		10
Greater than 1 year		158		215		(9	)		0

bps = basis points

The worst impact on the Bank’s FVOCI portfolio as of December 31, 2024, as a result of the simulation process described above, is as follows:

Most Adverse Stress Scenario P&L Impact FVOCI portfolio (MCh$)
CLP Debt Instrument	(32,904	)
CLF Debt Instrument	(60,179	)
Interest rate USD offshore	13
Banking spread	(5,027	)
Corporative spread	(839	)
Total	(98,936	)

The modeled for the FVTOCI Portfolio would generate potential impacts on equity accounts for Ch$98,936 million.

The main negative impact on the Trading Book would occur as a result of an increase in rates on debt instruments in CLP over 1 year, followed by an increase in CLF debt instruments over 1 year, while in the case of the FVTOCI portfolio the main impact comes from upward fluctuations in interest rates of debt instruments in CLF and CLP greater than 1 year. For its part, the lowest potential income in the next 12 months in the Banking Book would occur in a scenario of a sharp drop in nominal interest rates and inflation.

206

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47.

Risk Management and Report, continued:

(4)

Other Information related to Financial Risks:

Offsetting of financial assets and liabilities:

The Bank trades financial derivatives with foreign counterparties using ISDA Master Agreement (International Swaps and Derivatives Association, Inc.), under legal jurisdiction of the City of New York – USA or London – United Kingdom. Legal framework in these jurisdictions, along with documentation mentioned, it allows Banco de Chile the right to anticipate the maturity of the transaction and then, offset the net value of those transactions in case of default of counterparty. Additionally, the Bank has negotiated with these counterparties an additional annex (CSA Credit Support Annex), that includes other credit mitigating, such as entering margins on a certain amount of net value of transactions, early termination (optional or mandatory) of transactions at certain dates in the future, coupon adjustment of transaction in exchange for payment of the debtor counterpart over a certain threshold amount, etc.

Below are detail the contracts susceptible to offset:

	Fair Value				Negative Fair Value of contracts with right to offset						Positive Fair Value of contracts with right to offset						Financial Collateral						Net Fair Value
	2024		2023		2024			2023			2024			2023			2024			2023			2024		2023
	MCh$		MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$		MCh$

Derivative financial assets		2,377,312		2,084,441		(817,430	)		(929,094	)		(1,103,430	)		(816,453	)		(169,344	)		(160,125	)		287,108		178,769

Derivative financial liabilities		2,585,846		2,357,523		(817,430	)		(929,094	)		(1,103,430	)		(816,453	)		(334,897	)		(294,410	)		330,089		317,566

207

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47.

Risk Management and Report, continued:

(5)

Operational risk:

One of the Bank’s objectives is to monitor, control and maintain at adequate levels, the risk of losses resulting from a lack of adequacy or a failure of processes, personnel and/or internal systems, or due to external events. This definition includes legal risk and excludes strategic and reputational risk.

Operational risk is inherent in all activities, products and systems, and cuts across the entire organization in its strategic, business and support processes. It is the responsibility of all the Bank’s collaborators to manage and control the risks generated within their scope of action, since their materialization may lead to direct or indirect financial losses.

To face this risk, the Bank has defined a Regulatory Framework and a governance structure according to the volume and complexity of its activities. The Corporate Risk Division administer the management of this risk, through the establishment of a Global Control Management. Likewise, the “Superior Committee for Operational Risk” and the “Committee for Operational Risk” supervise it.

The Operational Risk Policy defines a comprehensive management model based on four main processes that ensure an adequate control environment in the organization.

These processes are implemented in the different areas of Operational Risk action:

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47.

Risk Management and Report, continued:

(5)

Operational risk, continued:

The aforementioned processes correspond to:

1. Identification and Evaluation: At Banco de Chile, this process considers internal and external factors, which allows us to better understand operational risk, and thus allocate resources and define strategies efficiently and effectively.

The Bank promotes the use of methodologies and procedures with the objective of guaranteeing an adequate identification and evaluation of these risks, both inherent and residual. These are executed with a frequency that allows knowing the operational risks in a timely manner.

2. Control and Mitigation: Determination of acceptable risk levels and mitigation actions to be applied in case of deviation from these levels. This process aims to maintain risk at adequate levels.

Banco de Chile will execute a set of control and mitigation tools in the different areas of management, which will make it possible to alert deviations in exposure to operational risk, where mitigation measures will be evaluated to solve them.

3. Monitoring and Reporting: This process aims to guarantee the monitoring of the main risks and inform the different interested parties.

At Banco de Chile, monitoring and reporting will consider information related to the different areas of management. If necessary, the results of the monitoring activities will be included in the relevant government instances.

4. Operational Risk Culture: The Global Control Management plans operational risk culture programs, aimed at raising awareness and training Bank employees in risk identification, control effectiveness, and event detection in their normal operating activities, so that each collaborator contributes to reduce the occurrence of risk events and mitigate their impact on the business.

Additionally, the comprehensive management of Operational Risk considers the following areas:

−

Fraud Management

−

Process Assessment

−

Testing of Controls

−

Event Management

−

Loss Base Management

−

Profile and Risk Appetite Framework

−

Generation of stress test models for Operational Risk

−

Supplier Management

−

Management Self-Assessment Matrix

−

Operational Risk Assessment for Projects

−

Subsidiary Control

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47.

Risk Management and Report, continued:

(5)

Operational risk, continued:

All areas previously mentioned, together with the corresponding regulatory framework and governance structure, constitute the overall management of Operational Risk. In this way, Banco de Chile and its Subsidiaries ensure an adequate environment for the management of operational risk.

Below is the exposure to net loss, gross loss and recoveries due to operational risk events as of December 31, 2024 and 2023:

	December 2024							December 2023
Category	Lost Gross MCh$		Recoveries MCh$			Lost Net MCh$		Lost Gross MCh$		Recoveries MCh$			Lost Net MCh$
Internal fraud		61		—			61		222		(14	)		208
External fraud		26,185		(12,738	)		13,447		26,969		(8,918	)		18,051
Work practices and safety in the business position		1,707		(17	)		1,690		3,034		—			3,034
Customers, products and business practices		673		—			673		1,169		—			1,169
Damage to physical assets		1,170		(152	)		1,018		1,208		(161	)		1,047
Business interruption and system failures		2,451		(1,549	)		902		951		—			951
Execution, delivery and process management		4,175		(24	)		4,151		3,182		(609	)		2,573
Total		36,422		(14,480	)		21,942		36,735		(9,702	)		27,033

Cybersecurity

The Cybersecurity Engineering and Architecture Management is in charge of defining, implementing and maximizing existing cyber threat protection technologies, and defining and maintaining the security architecture. The Cyber Defense Management is responsible for safeguarding information assets by proactively detecting, responding and containing threats. Likewise, this department is responsible for managing cybersecurity incidents in an assertive and timely manner, minimizing the impact and improving response times, with the aim of protecting the Bank’s operations.

On the other hand, the Technological Risk and Cyber Intelligence Management aims to ensure security and the integration of information security and cybersecurity risks, preventing attacks perpetuated by different threat agents. Manage and respond to cyber intelligence requirements that allow strengthening strategic decision-making within the organization through analytical models, in order to provide support to processes and mechanisms that seek to achieve greater security, protection and resilience against the current threat landscape.

Finally, the Cybersecurity Management and Subsidiary Control Management is in charge of defining, managing and carrying out the strategic plan of the cybersecurity division. Their responsibilities include ensuring optimal and efficient use of resources, as well as providing and supervising cybersecurity policies to suppliers, among other matters. Likewise, management must guarantee the implementation of guidelines and controls that establish cybersecurity regulations, in addition to managing the regulatory framework of the Division’s processes. Also, he is responsible for strengthening the cybersecurity culture within the organization and supporting the management of cross-functional functions and initiatives related to cybersecurity. Finally, it has the task of establishing and controlling cybersecurity management in the bank’s subsidiaries.

210

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47.

Risk Management and Report, continued:

The Bank in the management for the compliance with the objectives related to the delivery of the service of attention to its clients, has the Management of Business Continuity that through its policy and norm establishes the guidelines to manage, control and administrate the strategies for recovering from contingency situations, maintains the crisis governance model, sustain the continuity of services and critical operations related to the payment chain, through a comprehensive resilient model that includes plans and controlled tests to reduce the impact of disruptive events that may affect the Bank. Additionally, there is the role and responsibilities of the Information Security Officer (ISO), with an independent function in charge of designing and implementing controls, by monitoring the tasks carried out by the organizational units responsible for information security, cybersecurity and technological risk.

That is why Business Continuity has methodologies and controls that contribute to the application of the comprehensive model within the corporation, mainly represented in the following management areas:

−

Document Management: It consists of carrying out methodological processes of updating the documentation that supports Business Continuity in operational and technological areas, with the aim of keeping the strategy implemented in the Bank up to date and in accordance with the guidelines of Business Continuity Management (BCM).

−

Business Continuity Tests: It refers to annually scheduled contingency simulations that address the 5 risk scenarios defined for the Bank (Failure in Technology Infrastructure, Failure in Physical Infrastructure, Massive Absence of Personnel, Failure in Critical Supplier Service and Cybersecurity), allowing to maintain constant training and integration of critical personnel operating the payment chain, under the defined contingency procedures that support the Bank’s critical products and services.

−

Crisis Management: Internal process of the Bank that maintains and trains the key executive roles associated with the Crisis Groups in conjunction with the main recovery strategies and structures defined in the BCM model. In this way, it constantly strengthens the different areas necessary for preparation, execution and monitoring, that will allow facing crisis events in the Bank.

−

Critical Supplier Management: This involves the management, control and testing of Business Continuity Plans implemented by the suppliers involved in the processing of critical products and services for the Bank, associated with the risk scenarios established in direct relation to the contracted service.

211

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47.

Risk Management and Report, continued:

Business Continuity, continued:

−

Alternative Site Management: It includes the continuous management and control of secondary physical locations for the Bank’s critical units, to keep the operation active in case of failure in the main work location. The objective is to protect and maintain the technological and operational functionalities of the alternative sites, to reduce recovery times in case of crisis and that activation is effective when its use is required.

−

Relations with subsidiaries and External Entities: It consists of the permanent control, management and leveling on the compliance of Subsidiaries under the methodology and strategic lines established by the Bank in crisis environments and Business Continuity Management. It also includes the global management with the requirements of internal and external regulators.

−

Continuous Improvement: considers the application of processes, automation and the adaptation of resources used in the internal processes of the business continuity model, with the objective of improving response in the delivery and analysis of information in contingencies, complementing the managed processes of the BCM.

−

Training: It includes the development and implementation of processes and instances prepared under different learning methodologies to strengthen and empower employees on the areas of the business continuity model.

−

Cybersecurity Control: Design and implement independent controls by monitoring the tasks carried out by the organizational units responsible for the Bank’s information security, cybersecurity and technological risk.

The management and unification of the described areas, together with the compliance of the implemented regulations and the structured governability, constitute the Business Continuity Model of the Bank of Chile.

212

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48.

Information on Regulatory Capital and Capital Adequacy Ratios:

Requirements and Capital Management:

The main objectives of the Bank’s capital management are to ensure the adequacy and quality of its capital, at a consolidated level, based on the adequate management of the risks it faces in its operations, establishing sufficient capital levels, through the definition of internal objectives, that supports both the business strategy in both normal and stress scenarios in the short and medium term, thus ensuring compliance with regulatory requirements, coverage of its material risks, a solid credit classification and the generation of adequate capital clearances. During 2024, the Bank has met the required capital requirements and its internal sufficiency objectives.

As part of its Capital Management Policy, the Bank has established capital sufficiency alerts and limits approved by the Board of Directors, which are monitored by the governance structures that the Bank has established for these purposes, including the Capital Management Committee. During 2024, none of the internal alerts defined by the Bank were activated as part of the Capital Risk Appetite Framework. In this sense, the Bank manages capital based on its strategic objectives, its risk profile and its ability to generate cash flows, as well as the economic and business context in which it operates. If it requires strengthening its capital structure, the Bank may, among other options, propose to its shareholders meeting modifications to the dividend payment ratio, as well as issue basic capital, additional tier 1 capital or tier 2 capital instruments.

Capital Requirements

In accordance with the General Banking Law, the effective equity of a bank may not be less than 8% of its risk-weighted assets (RWA), net of required provisions. Additionally, it establishes that the Basic Capital may not be less than 4.5% of its APR or 3% of its total assets, net of required provisions. Regarding Tier 1 capital, corresponding to the sum of Basic Capital and Additional Tier 1 Capital, the latter in the form of bonds with no maturity date and preferred shares, it is established that it may not be less than 6% of their RWAs, net of required provisions. Likewise, banking entities must comply, as established by current regulations or regulators, with buffers and capital charges, such as the conservation buffer, the countercyclical buffer and capital charges by the systemically important buffer and/or Pillar 2.

Adoption of the Basel III standard

In 2019, the CMF began the regulatory process for the implementation of Basel III standards in Chile, as established in Law No. 21,130 that modernizes banking legislation. During the years 2020 and 2021, the CMF promulgated the different regulations for the adoption of the Basel III standard for local banking, which are applicable as of December 1, 2021. The regulation includes the standard methodologies to determine, among others, Credit, Operational and Market Risk-Weighted Assets, regulatory capital, leverage ratio and systemically important banks. Additionally, the regulations describe requirements and conditions applicable to: (i) the application of internal models for the calculation of certain risk-weighted assets, (ii) the issuance of additional tier 1 and tier 2 capital hybrid instruments, (iii) market disclosure requirements (Pillar 3), (iv) the principles for determining capital buffers (countercyclical and conservation), (v) additional requirements to which banks defined as systemically important and (vi) the criteria by which banks can be defined as atypical and subject to more exhaustive supervision, as well as additional capital requirements (Pillar 2) among others.

213

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48.

Information on Regulatory Capital and Capital Adequacy Ratios, continued:

On May, 2023, the Central Bank reported that its board agreed to activate the counter-cyclical core capital requirement for banks, at a local banking industry level, equivalent to 0.5% of the risk-weighted assets of banking institutions, required starting from the month of May 2024. In the monetary policy meeting of November 2024, the central bank agreed to maintain the same level of 0,5% requirement.

On January 16, 2024, the Financial Market Commission (CMF) reported that, as a result of the supervision process, it resolved to apply additional capital requirements of Pillar 2 of 0.5% for Banco de Chile within an implementation period of four years. This requirement must be constituted in a ratio of 25% no later than June 30, 2024. Likewise, this requirement must be recognized at least 56.3% with basic capital in proportion to the minimum legal requirements. On January 17, 2025 the CMF communicated the resolution adopted by its board regarding the charge for Pillar 2, maintaining the current requirement for Banco de Chile on that date, equivalent to 0.13%, which must be constituted 100% as of 30 June 2025.

On April 1, 2024, the CMF reported the result of the annual review of the banks’ systemic importance rating, maintaining an additional basic capital charge of 1.25% of the APR for Banco de Chile, payable in accordance to the gradualness defined by the regulations, so the capital charge required as of December 2024 is equivalent to 75% of said percentage. As of the date of these financial statements CMF has not reported additional requirements or any changes linked to Banco de Chile’s status as a systemic bank.

It should be noted that the Basel III banking solvency standards still consider a series of transitory regulations. These measures include: i) the gradual adoption of requirements for systemic banks, ii) the gradual application of adjustments to regulatory capital, iii) gradualness to continue recognizing subordinated bonds issued by banking subsidiaries as effective equity, among other matters. It is important to mention that on December 1, 2024 the gradual adaption of the conservation buffer, reaching 2.5% of risk-weighted assets, which is fully constituted by Banco de Chile.

214

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

48.

Information on Regulatory Capital and Capital Adequacy Ratios, continued:

Information on regulatory capital and capital adequacy indicators is presented below:

	Total assets, risk-weighted assets and components of the effective equity according to Basel III		Local and Overall consolidated		Local and Overall consolidated
			December -2024		Dec-2023
Item No.	Item description	Note	MCh$		MCh$

1	Total assets according to the statement of financial position			52,095,441		55,792,552
2	Non-consolidated investment in subsidiaries	a		—		—
3	Assets discounted from regulatory capital, other than item 2	b		2,544,175		2,253,206
4	Derivative credit equivalents	c		1,056,941		886,789
5	Contingent loans	d		3,104,187		2,827,120
6	Assets generated by the intermediation of financial instruments	e		—		—
7	= (1-2-3+4+5-6) Total assets for regulatory purposes			53,712,394		57,253,255
8.a	Credit risk weighted assets, estimated according to the standard methodology (CRWA)	f		32,704,910		31,887,173
8.b	Credit risk weighted assets, estimated according to internal methodologies (CRWA)	f		—		—
9	Market risk weighted assets (MRWA)	h		1,309,590		1,693,317
10	Operational risk weighted assets (ORWA)	g		4,339,979		4,110,324
11.a	= (8.a/8.b+9+10) Risk-weighted assets (RWA)			38,354,479		37,690,814
11.b	= (8.a/8.b+9+10) Risk-weighted assets, after application of the output floor (RWA)			38,354,479		37,690,814
12	Owner’s equity			5,622,999		5,237,283
13	Non-controlling interest	i		2		2
14	Goodwill	j		—		—
15	Excess minority investments	k		—		—
16	= (12+13-14-15) Core Tier 1 Capital (CET1)			5,623,001		5,237,285
17	Additional deductions to core tier 1 capital, other than item 2	l		111,087		60,992
18	= (16-17-2) Core Tier 1 Capital (CET1)			5,511,914		5,176,293
19	Voluntary provisions (additional) imputed as additional Tier 1 capital (AT1)	m		—		—
20	Subordinated bonds imputed as additional tier 1 capital (AT1)	m		—		—
21	Preferred shares allocated to additional tier 1 capital (AT1)			—		—
22	Bonds without a fixed term of maturity imputed to additional tier 1 capital (AT1)			—		—
23	Discounts applied to AT1	l		—		—
24	= (19+20+21+22-23) Additional Tier 1 Capital (AT1)			—		—
25	= (18+24) Tier 1 Capital			5,511,914		5,176,293
26	Voluntary provisions (additional) imputed as Tier 2 capital (T2)	n		408,811		398,590
27	Subordinated bonds imputed as Tier 2 capital (T2)	n		1,034,567		1,003,701
28	= (26+27) Equivalent tier 2 capital (T2)			1,443,378		1,402,291
29	Discounts applied to T2			—		—
30	= (28-29) Tier 2 capital (T2)			1,443,378		1,402,291
31	= (25+30) Effective equity			6,955,292		6,578,584
32	Additional basic capital required for the constitution of the conservation buffer	o		958,862		706,706
33	Additional basic capital required to set up the countercyclical buffer	p		191,772		—
34	Additional basic capital required for banks qualified as systemic	q		359,573		235,569
35	Additional capital required for the evaluation of the adequacy of effective equity (Pillar 2)	r		47,943		—

Corresponds the value of the investment in subsidiaries that are not consolidated. Applies only in the local consolidation when the bank has foreign subsidiaries, subtracting totally its value in assets and CET1.

Corresponds the value of the asset items that are subtracted from the regulatory capital, in accordance with the paragraph(a) of title N°3 of chapter 21-30 of the RAN.

Corresponds the credit equivalents of the derivative instruments, in accordance with the paragraph (b) of title N°3 of chapter 21-30 of the RAN.

215

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

48.

Information on Regulatory Capital and Capital Adequacy Ratios, continued:

Corresponds the contingent exposure according to the paragraph c) of the title N°3 of chapter 21-30 of the RAN.

Corresponds the intermediation of financial instrument assets in the name of the bank on behalf of third parties that are consolidated as established in the paragraph d) of the title N°3 of chapter 21-30 of the RAN.

Corresponds the estimated credit risk weighted assets according to the chapter 21-6 of RAN. If the bank does not have the authorization to apply internal methodologies, needs to inform the field 8.b as zero.

Corresponds the estimated market risk weighted assets according to the chapter 21-7 of the RAN.

Corresponds the estimated operational risk weighted assets according to the chapter 21-8 of the RAN.

Corresponds to the non-controlling interest, depending on the level of consolidation, up to 20% of the owners’ assets.

Assets that correspond to goodwill.

Corresponds to the balances of investment assets in non-business support companies that do not participate in the consolidation, above 5% of the owners’ equity.

In the case of CET1 and T2, banks must estimate the equivalent value for each tier of capital, as well as that obtained by fully applying Chapter 21-1 of the RAN. Then, the difference between the equivalent value and the fully applied value must be weighted by the discount factor in force on the reporting date according to the transitional provisions of Chapter 21-1 of the RAN, and reported in this row. In the case of the AT1, the discounts apply directly if they exist

Provisions and subordinated bonds allocated to additional capital tier 1 (AT1), as established in Chapter 21-2 of the RAN.

Provisions and subordinated bonds attributed to the equivalent definition of tier 2 capital (T2), as established in Chapter 21-1 of the RAN.

Corresponds to the additional basic capital (CET1) for the constitution of the conservation buffer, as established in Chapter 21-12 of the RAN.

Corresponds to the additional basic capital (CET1) for the constitution of the counter-cyclical buffer, as established in Chapter 21-12 of the RAN.

Corresponds to the additional basic capital (CET1) for banks qualified as systemic, as established in Chapter 21-11 of the RAN.

Corresponds to the additional capital for the evaluation of the sufficiency of the effective equity (Pillar 2) of the bank, as established in Chapter 21-13 of the RAN.

216

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

48.

Information on Regulatory Capital and Capital Adequacy Ratios, continued:

			Local and Overall consolidated			Local and Overall consolidated
			December -2024			Dec -2023
No. Item	Capital Adequacy Ratios and Regulatory Compliance according to Basel III	Note	%			%
1	Leverage Ratio (T1 I18/T1 I7)			10.26	%		9.04	%
1.a	Leverage Ratio that the bank must meet, considering the minimum requirements	a		3	%		3	%
2	CET 1 Capital Ratio (T1 I18/T1 I11.b)			14.37	%		13.73	%
2.a	CET 1 Capital Ratio that the bank must meet, considering the minimum requirements	a		5.51	%		5.13	%
2.b	Capital buffer shortfall	b		—			—
3	Tier 1 Capital Ratio (T1 I25/T1 I11.b)			14.37	%		13.73	%
3.a	Tier 1 Capital Ratio that the bank must meet, considering the minimum requirements	a		7.03	%		6.63	%
4	Regulatory Capital Ratio (T1 I31/T1 I11.b)			18.13	%		17.45	%
4.a	Regulatory Capital Ratio that the bank must meet, considering the minimum requirements	a		9.06	%		8.63	%
4.b	Regulatory Capital Ratio that the bank must meet, considering the charge for article 35 bis	c		N/A			N/A
4.c	Regulatory Capital Ratio that the bank must meet, considering the minimum requirements, conservation buffer and countercyclical buffer	b		12.06	%		10.94	%
5	Credit rating	d		A			A
	Regulatory compliance for Capital Adequacy
6	Additional provisions computed in Tier 2 capital (T2) in relation to CRWA (T1 I26/T1 I8.a)	e		1.25	%		1.25	%
7	Subordinated bonds computed as Tier 2 capital (T2) in relation to CET 1 Capital	f		18.40	%		19.16	%
8	Additional Tier 1 Capital (AT1) in relation to CET 1 Capital (T1 I24/T1 I18)	g		—			—
9	Voluntary (additional) provisions and subordinated bonds computed as AT1 in relation to RWAs ((T1 I19+T1 I20)/T1 I11.b)	h		N/A			N/A

(*)

T1 Ix: corresponds to item x of the previous table.

In the case of the leverage indicator, the requirement is 3% without prejudice to the additional requirements for systemic banks that could be set according to the provisions of Chapter 21-30 of the RAN.In the case of core capital, the bank considers a charge of 4.5% of risk-weighted assets (RWA) plus the systemic charge and Pillar 2 requirements. In Tier 1 capital, a value of 6% plus the systemic bank charge and Pillar 2 charge is considered the minimum requirement.

For effective equity, 8% of the RWA is considered, adding to this value the additional charges for systemic bank and Pillar 2. The systemic bank and Pillar 2 requirements for Banco de Chile are equivalent to 1.25% and 0.5%, respectively (1.25% and 0% as of December 31, 2023). The transitional provisions require 75% of the capital charge per systemic bank as of December 31, 2024 (50% as of December 31, 2023) and 25% of the charge for Pillar 2, which is covered by 56, 3% with basic capital (there is no requirement for Pillar 2 as of December 31, 2023).

The capital buffer deficit must be estimated according to the provisions of Chapter 21-12 of the RAN. This value defines the restriction on the distribution of dividends, as provided in the Chapter mentioned above. In the case of effective equity, the requirement of 100% of the conservation buffer of 2.5% (75% as of December 31, 2023) and a counter-cyclical capital charge are added to the value reported in note 4.a). of 0.5% as of December 31, 2024 (0% as of December 31, 2023).

It corresponds to the effective equity requirement in force by article 35 bis of the General Banking Law.

It corresponds to the solvency classification as established in article 61 of the general banking law.

Limit is equivalent to 1.25% when using standard methodology for determining CRWAs.

Limit is equivalent to 50% of the basic capital, considering the discounts applied to these instruments according to Chapter 21-1 of the RAN.

Additional Tier 1 capital cannot exceed 1/3 of core capital.

Additional provisions and subordinated bonds could be temporarily allocated until November 2023 to AT 1 for up to 1% of the RWA as of December 1, 2021. This value decreased annually by 0.5% in accordance with the transitional provisions of Chapter 21-2 of the RAN.

217

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, continued

49.

Subsequent Events:

(a)

On January 17, 2025, Banco de Chile reported that the Financial Market Commission informed the Bank that it resolved to maintain as a capital requirement for Pillar II risk, the charge already constituted corresponding to 0.13% of the risk-weighted assets net of required provisions, in accordance with article 66 quinquies of the General Banking Law.

(b)

On January 23, 2025, the subsidiary Banchile Corredores de Bolsa reported that the Board of Directors agreed to appoint Mr. José Antonio Díaz Orellana as General Manager of Banchile Corredores de Bolsa S.A., who until that date served as Interim General Manager.

(c)

On February 11, 2025, the Board of Directors of Banco de Chile agreed to convene an Ordinary Shareholders' Meeting for March 27, 2025 in order to propose, among other matters, the following distribution of profits for the year ended on December 31, 2024:

Deduct and withhold from the net income of the year, an amount equivalent to the effect of inflation of the paid capital and reserves according to the variation of the Consumer Price Index that occurred between November 2023 and November 2024, amounting to Ch$212,012,307,434 which will be added to retained earnings from previous periods.

Distribute in the form of dividend the remaining profit, corresponding to a dividend of Ch$9.85357420889 to each of the 101,017,081,114 shares of the Bank.

Consequently, it will be proposed a distribution as dividend of 82.4% of the profits for the year ended December 31, 2024.

The Consolidated Financial Statements of Banco de Chile for the year ended December 31, 2024 were approved by the Directors on February 11, 2025.

In Management’s opinion, there are no other significant subsequent events that affect or could affect the Consolidated Financial Statements of Banco de Chile and its subsidiaries between December 31, 2024 and the date of issuance of these Consolidated Financial Statements.

Héctor Hernández G.

General Accounting Manager

Eduardo Ebensperger O.

Chief Executive Officer

218