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Provisions and Contingent Provisions

12 Months Ended

Dec. 31, 2022

Provisions and Contingent Provisions [Abstract]

NOTE 19 - PROVISIONS AND CONTINGENT PROVISIONS

As of December 31, 2022 and 2021, the composition is as follows:

	As of December 31,
	2022		2021
	MCh$		MCh$

Provisions for personnel salaries and expenses		99,424		109,001
Provisions for lawsuits and litigations		5,533		3,035
Provision for loyalty programmes		38		38
Provision for operational risks		5,149		1,578
Provision for other contingencies		63,232		52,205
Provisions for mandatory dividends		237,683		252,740
Provision for interest of perpetual bonds		4,966		4,995
Provisions for contingent loan		44,997		40,357
Total		461,022		463,949

a. Below is the activity regarding provisions during the years ended December 31, 2022, 2021 and 2020:

	Personnel salaries and expenses			Lawsuit and litigations			Loyalty programme		Operational risks			Contingencies			Mandatory Dividend			Interest of perpetual bonds			Contingent loan			Total
	MCh$			MCh$			MCh$		MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Balances as of January 1, 2022		109,001			3,035			38		1,578			52,205			252,740			4,995			40,357			463,949
Provisions established		121,779			2,963			-		4,053			24,365			237,683			30,523			110,211			531,577
Application of provisions		(132,340	)		(465	)		-		(482	)		(13,578	)		(252,740	)		(30,552	)		-			(429,917	)
Provisions released		(1,748	)		-			-		-			-			-			-			(105,687	)		(107,435	)
Other		2,768			-			-		-			-			-			-			116			2,848
Balances as of December 31, 2022		99,424			5,533			38		5,149			63,232			237,683			4,966			44,997			461,022
Balances as of January 1, 2021		102,958			2,411			38		-			32,726			164,284			-			28,247			330,664
Provisions established		90,363			624			-		1,578			30,413			252,740			4,995			73,201			453,914
Application of provisions		(80,768	)		-			-		-			-			-			-			-			(80,768	)
Provisions released		(1,836	)		-			-		-			(10,934	)		(164,284	)		-			(63,654	)		(240,708	)
Other		(1,716	)		-			-		-			-			-			-			2,563			847
Balances as of December 31, 2021		109,001			3,035			38		1,578			52,205			252,740			4,995			40,357			463,949
Balances as of January 1, 2020		99,500			3,104			-		-			14,559			185,727			-			23,240			326,130
Provisions established		75,891			856			38		-			24,867			164,284			-			14,683			280,619
Application of provisions		(70,676	)		(1,549	)		-		-			-			-			-			-			(72,225	)
Provisions released		(1,759	)		-			-		-			(6,700	)		(185,727	)		-			(9,676	)		(203,862	)
Other		2			-			-		-			-			-			-			-			2
Balances as of December 31, 2020		102,958			2,411			38		-			32,726			164,284			-			28,247			330,664

b. Provisions for personnel salaries and expenses includes:

	As of December 31,
	2022		2021
	MCh$		MCh$

Provision for short-term benefits		97,866		104,313
Provision for long-term benefits		926		285
Provision for senioruty compensation		601		6,018
Provision for other personnel benefits		31		5
Total		99,424		110,621

c. Provisions for contingent loan risk

Provision for contingent loan arise from contingent liabilities and loan commitments. Provisions for ECL risks in respect of contingent loan are included in ECL allowance in the income statements for the year.

An analysis of changes in the corresponding ECL allowance as of December 31, 2022 and 2021 is as follows:

	December 31, 2022
	Stage 1			Stage 2			Stage 3			TOTAL
ECL allowance at January 1, 2022	23,029			9,599			7,729			40,357
Transfer
Transfers from stage 1 to stage 2		(1,585	)		4,719			-			3,134
Transfers from stage 1 to stage 3		(143	)		-			2,846			2,703
Transfers from stage 2 to stage 3		-			(1,860	)		6,124			4,264
Transfers from stage 2 to stage 1		1,832			(7,467	)		-			(5,635	)
Transfers from stage 3 to stage 2		-			3,762			(2,926	)		836
Transfers from stage 3 to stage 1		1			-			(78	)		(77	)
Net changes on financial assets		2,998			35			(3,801	)		(768	)
Write-off		-			-			-			-
Other adjustments		184			1			-2			183
At December 31, 2022		26,316			8,789			9,892			44,997

	December 31, 2021
	Stage 1			Stage 2			Stage 3			TOTAL
ECL allowance at January 1, 2021		13,825			6,315			8,107			28,247
Transfer
Transfers from stage 1 to stage 2		(1,303	)		4,714			-			3,411
Transfers from stage 1 to stage 3		(70	)		-			2,876			2,806
Transfers from stage 2 to stage 3		-			(217	)		4,990			4,773
Transfers from stage 2 to stage 1		1,323			(4,551	)		-			(3,228	)
Transfers from stage 3 to stage 2		-			217			(1,699	)		(1,482	)
Transfers from stage 3 to stage 1		12			-			(469	)		(457	)
Net changes on financial assets		9,058			3,120			(6,074	)		6,104
Write-off		-			-			-			-
Other adjustments		184			1			(2	)		183
At December 31, 2021		23,029			9,599			7,729			40,357