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Equity

12 Months Ended

Dec. 31, 2019

NOTE 24

EQUITY

a)	Capital

As of December 31, 2019 and 2018 the Bank had 188,446,126,794 shares outstanding, all of which are subscribed for and paid in full, amounting to Ch$891,303 million. All shares have the same rights, and have no preferences or restrictions.

The activity with respect to shares during 2019, 2018 and 2017 was as follows:

	SHARES As of December 31,
	2019		2018		2017

Issued as of January 1		188,446,126,794		188,446,126,794		188,446,126,794
Issuance of paid shares		-		-		-
Issuance of outstanding shares		-		-		-
Stock options exercised		-		-		-
Issued as of December 31,		188,446,126,794		188,446,126,794		188,446,126,794

As of December 31, 2019, 2018 and 2017 the Bank does not have any of its own shares in treasury, nor do any of the consolidated companies.

As of December 31, 2019 the shareholder composition was as follows:

Corporate Name or Shareholder's Name	Shares		ADRs (*)		Total		% of equity holding

Santander Chile Holding S.A.		66,822,519,695		-		66,822,519,695		35.46
Teatinos Siglo XXI Inversiones Limitada		59,770,481,573		-		59,770,481,573		31.72
The Bank New York Mellon		-		24,822,041,271		24,822,041,271		13.17
Banks on behalf of third parties		15,957,137,883		-		15,957,137,883		8.47
Pension funds (AFP) on behalf of third parties		9,995,705,956		-		9,995,705,956		5.30
Stock brokers on behalf of third parties		5,551,024,270		-		5,551,024,270		2.95
Other minority holders		5,527,216,146		-		5,527,216,146		2.93
Total		163,624,085,523		24,822,041,271		188,446,126,794		100.00

(*)

American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets.

As of December 31, 2018 the shareholder composition was as follows:

Corporate Name or Shareholder's Name	Shares		ADRs (*)		Total		% of equity holding

Santander Chile Holding S.A.		66,822,519,695		-		66,822,519,695		35.46
Teatinos Siglo XXI Inversiones Limitada		59,770,481,573		-		59,770,481,573		31.72
The Bank New York Mellon		-		26,486,000,071		26,486,000,071		14.05
Banks on behalf of third parties		15,451,106,985		-		15,451,106,985		8.20
Pension funds (AFP) on behalf of third parties		9,033,172,896		-		9,033,172,896		4.79
Stock brokers on behalf of third parties		4,773,558,507		-		4,773,558,507		2.53
Other minority holders		6,109,287,067		-		6,109,287,067		3.25
Total		161,960,126,723		26,486,000,071		188,446,126,794		100.00

(*)

American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets.

As of December 31, 2017 the shareholder composition was as follows:

Corporate Name or Shareholder's Name	Shares		ADRs (*)		Total		% of equity holding

Santander Chile Holding S.A.		66,822,519,695		-		66,822,519,695		35.46
Teatinos Siglo XXI Inversiones Limitada		59,770,481,573		-		59,770,481,573		31.72
The Bank New York Mellon		-		31,238,866,071		31,238,866,071		16.58
Banks on behalf of third parties		13,892,691,988		-		13,892,691,988		7.37
Pension funds (AFP) on behalf of third parties		6,896,552,755		-		6,896,552,755		3.66
Stock brokers on behalf of third parties		3,762,310,365		-		3,762,310,365		2.00
Other minority holders		6,062,704,347		-		6,062,704,347		3.21
Total		157,207,260,723		31,238,866,071		188,446,126,794		100.00

(*)

American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets.

b)	Reserves

During 2019, on the Shareholders Meeting held in April, it is agreed to capitalize on reserves 40% of retained earnings from previous years, equivalent to $236,761 million ($141,204 and $141,706 million in the year 2018 and 2017 respectively).

As a result of the purchase of Santander Consumer S.A., the Bank has recorded negative equity effect of MCh$37,041, since the Bank apply "predecessor accounting method", and the difference between the consideration transferred and the acquired net asset is recorded in equity, within reserves. See Note 3.

c)	Dividends

The distribution of dividends is detailed in the Consolidated Statements of Changes in Equity.

d)	As of December 31, 2019, 2018 and 2017 the basic and diluted earnings per share were as follows:

	As of December 31,
	2019		2018		2017
	MCh$		MCh$		MCh$

a) Basic earnings per share
Total attributable to the shareholders of the Bank		619,091		595,333		562,801
Weighted average number of outstanding shares		188,446,126,794		188,446,126,794		188,446,126,794
Basic earnings per share (in Ch$)		3.285		3.159		2.986
Basic earnings per share from continuing operations (in Ch$)		3.276		3.139		2.972
Basic earnings per share from discontinued operations (in Ch$)		0.009		0.020		0.015

b) Diluted earnings per share
Total attributable to the shareholders of the Bank		619,091		595,333		562,801
Weighted average number of outstanding shares		188,446,126,794		188,446,126,794		188,446,126,794
Adjusted number of shares		188,446,126,794		188,446,126,794		188,446,126,794
Diluted earnings per share (in Ch$)		3.285		3.159		2.987
Diluted earnings per share from continuing operations (in Ch$)		3.276		3.139		2.972
Diluted earnings per share from discontinued operations (in Ch$)		0.009		0.020		0.015

As of December 31, 2019, 2018 and 2017 the Bank does not own instruments with dilutive effects.

Other comprehensive income from available for sale investments and cash flow hedges:

	For the years ended December 31,
	2019			2018			2017
	MCh$			MCh$			MCh$

Debt instruments at FVOCI
As of January 1,		6,962			1,855			-
Gain (losses) on the re-measurement of debt instruments at FVOCI, before tax		(17,775	)		6,609			-
Recycling from other comprehensive income to income for the year		39,997			(1,502	)		-
Available for sale investments
As of January 1,		-			-			7,375
Gain (losses) on the re-measurement of available for sale investments, before tax		-			-			(10,384	)
Recycling from other comprehensive income to income for the year		-			-			4,864
Subtotals		22,222			5,107			(5,520	)
Total		29,184			6,962			1,855

Cash flow hedges
As of January 1,		9,803			(3,562	)		2,288
Gains (losses) on the re-measurement of cash flow hedges, before tax		(49,163	)		14,048			(5,850	)
Recycling adjustments on cash flow hedges, before tax		(1,075	)		(683	)		-
Amounts removed from equity and included in carrying amount of non-financial asset (liability) which acquisition or incurrence was hedged as a highly probable transaction		-			-			-
Subtotals		(50,238	)		13,365			(5,850	)
Total		(40,435	)		9,803			(3,562	)

Other comprehensive income, before taxes		(11,251	)		16,765			(1,707	)

Income tax related to other comprehensive income components
Income tax relating to debt instruments at FVOCI		(7,756	)		(1,810	)		-
Income tax relating to available for sale investments					-			(473	)
Income tax relating to cash flow hedges		10,918			(2,646	)		908
Total		3,162			(4,456	)		435

Other comprehensive income, net of tax		(8,089	)		12,309			(1,272	)
Attributable to:
Shareholders of the Bank		(8,856	)		11,353			(2,312	)
Non-controlling interest		767			956			1,040

The Bank expects that the results included in "Other comprehensive income" will be reclassified to profit or loss when the specific conditions have been met.