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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Summary Of Significant Accounting Policies  
Schedule of subsidiaries

The following companies are considered entities controlled by the Bank and are therefore within the scope of consolidation:

 

i.Entities controlled by the Bank through participation in equity

 

         Percent ownership share 
      Place of  As of December 31, 
      Incorporation  2019   2018   2017 
Name of the  Main  and   Direct   Indirect   Total   Direct   Indirect   Total   Direct   Indirect   Total 
Subsidiary  Activity  operation  %   %   %   %   %   %   %   %   % 
Santander Corredora de Seguros Limitada  Insurance brokerage  Santiago, Chile   99.75    0.01    99.76    99.75    0.01    99.76    99.75    0.01    99.76 
Santander Corredores de Bolsa Limitada  Financial instruments brokerage  Santiago, Chile   50.59    0.41    51.00    50.59    0.41    51.00    50.59    0.41    51.00 
Santander Asesorias Financieras Limitada (1)  Securities brokerage  Santiago, Chile   99.03    -    99.03    99.03    -    99.03    99.03    -    99.03 
Santander S.A. Sociedad Securitizadora  Purchase of credits and issuance of debt instruments  Santiago, Chile   99.64    -    99.64    99.64    -    99.64    99.64    -    99.64 
Klare Corredora de Seguros S.A. (2)  Insurance brokerage  Santiago, Chile   50.10    -    50.10    -    -    -    -    -    - 
Santander Consumer Chile S.A. (3)  Financing  Santiago, Chile   51.00    -    51.00    -    -    -    -    -    - 

 

The detail of non-controlling participation on all the remaining subsidiaries can be seen in Note 25– Non-controlling interest.

 

(1)On December 18, 2019, Santander Agente de Valores Limitada changes its business name and the company's object, to Santander Asesorías Financieras Limitada, and offering financial advice.

 

(2)On October 19, 2019 Klare Corredora de Seguros S.A. was created as a digital insurance brokerage, and supporting banking business company and thus subject to banking regulations. The Banks owns the 50,10% of the company's capital share.

 

(3)On November 15, 2019, Financial Market Commission (FMC) authorized Banco Santander to acquire the 51% of the Santander Consumer Chile S.A. capital share from SK Berge (49%) and Banco Santander S.A. (2%). The sale was completed on November 27, 2019.
Schedule of associates

The following companies are considered "Associates" in which the Bank accounts for its participation using the equity method:

 

         Percentage of ownership share 
      Place of  As of December 31, 
      Incorporation and   2019   2018   2017 
Associates  Main activity  operation  %   %   % 
Redbanc S.A. (*)  ATM services  Santiago, Chile   -    33.43    33.43 
Transbank S.A. (*)  Debit and credit card services  Santiago, Chile   -    25.00    25.00 
Centro de Compensación Automatizado  Electronic fund transfer and compensation services  Santiago, Chile   33.33    33.33    33.33 
Sociedad Interbancaria de Depósito de Valores S.A.  Delivery of securities on public offer  Santiago, Chile   29.29    29.29    29.29 
Cámara Compensación de Alto Valor S.A.  Payments clearing  Santiago, Chile   15.00    15.00    15.00 
Administrador Financiero del Transantiago S.A.  Administration of boarding passes to public transportation  Santiago, Chile   20.00    20.00    20.00 
Sociedad Nexus S.A. (*)  Credit card processor  Santiago, Chile   -    12.90    12.90 
Servicios de Infraestructura de Mercado OTC S.A.  Administration of the infrastructure for the financial market of derivative instruments  Santiago, Chile   12.48    12.48    12.48 
(*)The Bank is in process to sell its share participation on Redbanc S.A., Transbank S.A. and Nexus S.A., therefore it has applied IFRS 5 Non-current Assets Held for Sale and Discontinued Operations over its participations share. As of December 31, 2019, the Bank has sold 85% of its share participation in Nexus S.A. See Note N°39.
Schedule of useful lives for the tangible assets

The Bank applies the following useful lives for the tangible assets that comprise its assets:

 

ITEM  Useful life
(Months)		 
     
Land   - 
Paintings and works of art   - 
Carpets and curtains   36 
Computers and hardware   36 
Vehicles   36 
IT systems and software   36 
ATMs   60 
Other machines and equipment   60 
Office furniture   60 
Telephone and communication systems   60 
Security systems   60 
Rights over telephone lines   60 
Air conditioning systems   84 
Other installations   120 
Buildings   1,200 
      
Schedule of loan and accounts receivable charge-offs

Loan and accounts receivable write-offs are recorded for overdue and current installments based on the time periods expired since reaching overdue status, as described below:

 

Type of loan   Term
     
Consumer loans with or without collateral   6 months
Other transactions without collateral   24 months
Commercial loans with collateral   36 months
Mortgage loans   48 months
Consumer leasing   6 months
Other non-mortgage leasing transactions   12 months
Mortgage leasing (household and business)   36 months