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Transactions With Related Parties
 12 Months Ended
Dec. 31, 2023
Transactions With Related Parties [Abstract]  
TRANSACTIONS WITH RELATED PARTIES

NOTE 34 - TRANSACTIONS WITH RELATED PARTIES

 

In addition to affiliates and associated entities, the Bank’s “related parties” include its “key personnel” from the executive staff (members of the Bank’s Board of Directors and Managers of Banco Santander-Chile and its affiliates, together with their close relatives), as well as the entities over which the key personnel could exercise significant influence or control.

 

The Bank also considers the companies that are part of the Santander Group worldwide as related parties, since all of them have a common parent, i.e., Banco Santander S.A. (located in Spain).

 

Transactions between the Bank and its related parties are specified below, facilitate comprehension purposes, we have divided the information into four categories:

 

Santander Group Companies

 

This category includes all the companies that are controlled by the Santander Group around the world, and hence, it also includes the companies over which the Bank exercises any degree of control (affiliates and special-purpose entities).

 

Associated companies

 

This category includes the entities over which the Bank, in accordance with section b) of Note 1 to these Financial Statements, exercises a significant degree of influence and which generally belong to the group of entities known as “business support companies”.

 

Key personnel

 

This category includes members of the Bank’s Board of Directors and managers of Banco Santander-Chile and its affiliates, together with their close relatives.

 

Other

 

This category encompasses the related parties that are not included in the groups identified above and which are, in general, entities over which the key personnel could exercise significant influence or control.

 

The terms for transactions with related parties are equivalent to those which prevail in transactions made under market conditions or to which the corresponding considerations in kind have been attributed.

 

a.Loans to related parties

 

Loans and accounts receivable as well as contingent loans that correspond to related entities are as follows:

 

   As of December 31, 
   2023   2022   2021 
   Group
entities		   Associates
entities		   Key
personnel		   Other   Group
entities		   Associates
entities		   Key
personnel		   Other   Group
entities		   Associates
entities		   Key
personnel		   Other 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
                                                 
Loans and accounts receivable                                                
Commercial loans   750,419    49,284    3,272    978    680,624    118    3,185    280    592,992    192    2,611    219 
Mortgage loans   -    -    29,809    -    -    -    30,479    -    -    -    20,716    - 
Consumer loans   -    -    6,388    -    -    -    6,540    -    -    -    6,562    - 
Loans and accounts receivable   750,419    49,284    39,469    978    680,624    118    40,204    280    592,992    192    29,889    219 
                                                             
Allowance for loan losses   (1,037)   (50)   (361)   (19)   (2,213)   (8)   (164)   (10)   (2,586)   (30)   (138)   (6)
Net loans   749,382    49,234    39,108    959    678,411    100    40,040    270    590,406    162    29,751    213 
                                                             
Guarantees                       -    -    -    -    2,039    -    25,545    117 
                                                             
Contingent loans                                                            
Personal guarantees   -    -    -    -    -    -    -    -    -    -    -    - 
Letters of credit   1,960    -    -    -    19,162    -    -    -    13,848    -    -    - 
Guarantees   438    -    -    343    30,422    -    -    -    538    -    -    - 
Contingent loans   2,398    -    -    343    49,584    -    -    -    14,386    -    -    - 
                                                             
Allowance for contingent loans   (4)   -    -    (5)   (41)   -    -    -    (32)   -    -    - 
Net contingent loans   2,394    -    -    338    49,543    -    -    -    14,354    -    -    - 

  

Loan activity to related parties during 2023, 2022 and 2021 is shown below:

 

   As of December 31, 
   2023   2022   2021 
   Group
entities		   Associates
entities		   Key
Personnel		   Other   Group
entities (*)		   Associates
entities		   Key
Personnel		   Other   Group
entities (*)		   Associates
entities		   Key
Personnel		   Other 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Opening balances as of January 1,   730,208    118    40,204    280    607,378    192    29,889    219    356,848    265    32,498    993 
Loans granted   101,819    65,320    13,177    5,389    179,540    29    18,115    156    373,006    -    5,738    53 
Loans payments   (79,210)   (16,154)   (13,912)   (4,348)   (56,710)   (103)   (7,800)   (95)   (122,476)   (73)   (8,347)   (827)
Total   752,817    49,284    39,469    1,321    730,208    118    40,204    280    607,378    192    29,889    219 

  

(*)Loans with non-controlled companies (not-consolidated) amount MCh$3,348, MCh$27,544 and MCh$1,174 as of December 31, 2023, 2022 and 2021, respectively.

 

b.Assets and liabilities with related parties

 

   As of December 31, 
   2023   2022   2021 
   Group
entities		   Associates
entities		   Key
personnel		   Other   Group
entities		   Associates
entities		  

Key

personnel

   Other   Group
entities		   Associates
entities		  

Key

personnel

   Other 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Assets                                                
Cash and deposits in banks   666,062    -    -    -    280,364    -    -    -    1,069,468    -    -    - 
Financial assets at FVTPL                                                            
Financial derivative contracts   967,020    267,679    -    -    1,190,683    386,494    -    -    1,164,660    298,997    -    - 
Other assets   686,950    550,400    -    -    676,850    287,053    -    -    1,042,852    437,227    -    - 
                                                             
Liabilities                                                            
Financial liabilities at FVTPL                                                            
Financial derivative contracts   1,255,740    370,314    -    -    1,695,284    326,149    -    -    2,083,795    224,247    -    - 
Financial liabilities at amortised cost                                                            
Deposits and other demand liabilities   54,033    1,272    3,833    502    73,193    -    4,398    833    16,190    2,486    4,760    1,003 
Time deposits and other time liabilities   145,649    -    9,894    1,589    10,376    -    9,442    1,102    900,830    1,677    3,066    948 
Obligations under repurchase agreements   129,321    -    -    -    64,547    -    -    18,135    57,771    -    181    5,807 
Interbank borrowing   33,693    -    -    -    224,798    -    -    -    640,860    -    -    - 
Issued debt instruments   1,081,123    -    -    -    1,001,310    -    -    -    584,244    592,468    -    - 
Other financial liabilities   257,915    435,093    -    -    267,130    325,070    -    -    16,259    233,630    -    - 

 

c.Income (expense) recorded due to transactions with related parties

 

   For the years ended December 31, 
   2023   2022   2021 
   Group
entities		   Associates
entities		   Key
personnel		   Other   Group
entities		   Associates
entities		   Key
personnel		   Other   Group
entities		   Associates
entities		   Key
personnel		   Other 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
                                                 
Interest income and inflation-indexation adjustments   (45,542)   1,471    1,717    (41)   (44,196)   (13)   4,198    79    (24,428)   51    1,905    9 
Fee and commission income and expenses   176,603    87,987    250    24    157,236    86,581    261    15    134,404    25,445    202    11 
Net income (expense) from financial operations and net foreign exchange gain (loss) (*)   233,651    -    -    -    (690,780)   (47,993)   (217)   27    (751,605)   187,300    -    - 
Other operating income and expenses   964    (734)   -    -    1,311    (619)   -    -    552    (525)   -    - 
Key personnel compensation and expenses   -    -    (43,941)   -    -    -    (32,739)   -    -    -    (36,579)   - 
Administrative and other expenses   (95,561)   (1,120)   -    -    (78,435)   (82,771)   -    -    (66,895)   (54,953)   -    - 

 

(*)Primarily relates to derivative contracts used to financial hedge of exchange risk of assets and liabilities that cover positions of the Bank and its subsidiaries.

 

d.Transactions with related parties

 

Single transaction in the period with related parties not legal persons, which are not usual business operations of the Bank with their clients, and that exceed UF 2,000 (USD 83,178).

 

                
As of December 31, 2023        Description of the transactions  Effect on income statements  Effect on balance sheet
Business name  Country  Nature of
relationship
with the Bank		  Type of
service		  Term  Renewal  Income
MCh$		  Expenses
MCh$		  Account
receivable
MCh$		 

Account
payable
MCh$

Banco Santander, S.A.  Spain  Group  Advisory services  Monthly  Contractual   
-
    18,929    
-
    18,715 
Santander Back-Offices Globales Mayoristas, S.A.  Spain  Group  Servicios de BackOffice  Monthly  Contractual   
-
    3,216    
-
    
-
 
Santander Chile Holding S.A.  Chile  Group  Leases  Monthly  Contractual   255    
-
    2    
-
 
Santander Factoring S.A.  Chile  Group  Leases, Custody and gateway  Monthly  Contractual   42    418    20    51 
Gesban Santander Servicios Profesionales Contables Limitada  Chile  Group  Accounting services  Monthly  Contractual   60    1,104    
-
    
-
 
Santander Global Services, S.L.  Spain  Group  Advisory services  Monthly  Contractual   
-
    639    
-
    
-
 
Santander Investment Chile Limitada  Chile  Group  Leases  Monthly  Contractual   
-
    4,725    
-
    29 
Santander Global Technology and Operations Chile limitada  Chile  Group  IT Services  Monthly  Contractual   
-
    306    
-
    9 
Universia Chile S.A.  Chile  Group  Institucional services  Monthly  Contractual   4    377    
-
    
-
 
Aquanima Chile S.A.  Chile  Group  Procurement Services  Monthly  Contractual   
-
    1,943    
-
    112 
Santander Asset Management S.A. Administradora General de Fondos  Chile  Group  Leases and others  Monthly  Contractual   
-
    676    747    78 
Centro de Compensación Automatizado S.A.  Chile  Associated  Derivatives clearing  Monthly  Contractual   
-
    3,615    
-
    
-
 
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.  Chile  Associated  Card operator  Monthly  Contractual   
-
    646    
-
    
-
 
Zurich Santander Seguros Generales Chile S.A.  Chile  Associated  Sale channel service  Monthly  Contractual   205    
-
    1,667    
-
 
F1rst Tecnologia e Inovação Ltda.  Brazil  Group  IT Services and Service desk  Monthly  Contractual   
-
    8,723    
-
    
-
 
Santander Global Technology and Operations, S.L. Unipersonal  Spain  Group  IT Services and Operations  Monthly  Contractual   
-
    52,948    
-
    
-
 
PagoNxt Trade Services, S.L.  Spain  Group  Digital payments  Monthly  Contractual   
-
    400    
-
    
-
 
Mercury Trade Finance Solutions, S.p.A.  Chile  Group  IT Services  Monthly  Contractual   
-
    183    
-
    
-
 
PagoNxt Trade Chile SpA  Chile  Group  Data processing and transmission  Monthly  Contractual   31    1,680    31    1,680 
Banco Santander, S.A.  Spain  Group  Advisory services  Monthly  Contractual   
-
    18,929    
-
    18,715 

 

                
As of December 31, 2022        Description of the transactions  Effect on income statements  Effect on balance sheet
Business name  Country  Nature of
relationship
with the Bank		  Type of
service		  Term  Renewal  Income
MCh$		  Expenses
MCh$		  Account
receivable
MCh$		 

Account payable
MCh$

Banco Santander, S.A.  Spain  Group  Advisory services  Monthly  Contractual   
-
    15,999    
-
    1,642 
Santander Back-Offices Globales Mayoristas, S.A.  Spain  Group  BackOffice services  Monthly  Contractual   
-
    3,059    
-
    
-
 
Santander Chile Holding S.A.  Chile  Group  Leases  Monthly  Contractual   234    
-
    234    
-
 
Santander Factoring S.A.  Chile  Group  Leases, Custody and gateway  Monthly  Contractual   39    423    39    133 
Gesban Santander Servicios Profesionales Contables Limitada  Chile  Group  Accounting services  Monthly  Contractual   60    1,019    60    523 
Santander Gestión de Recaudación y Cobranzas, Ltda.  Chile  Group  Leases and collection  Monthly  Contractual   408    180    408    14 
Santander Global Facilities, S.L.  Spain  Group  Advisory services  Monthly  Contractual   
-
    341    
-
    
-
 
Santander Investment Chile Limitada  Chile  Group  Leases  Monthly  Contractual   
-
    4,381    
-
    26 
Santander Corredores de Bolsa Limitada  Chile  Group  Leases  Monthly  Contractual   65    226    65    29 
Santander Global Technology and Operations Chile limitada  Chile  Group  IT Services  Monthly  Contractual   
-
    258    
-
    
-
 
Universia Chile, S.A.  Chile  Group  Institucional services  Monthly  Contractual   8    341    8    
-
 
Aquanima Chile S.A.  Chile  Group  Procurement Services  Monthly  Contractual   
-
    1,710    
-
    
-
 
Santander Asset Management S.A. Administradora General de Fondos  Chile  Group  Leases and others  Monthly  Contractual   
-
    626    
-
    78 
Zurich Santander Seguros Generales Chile S.A.  Chile  Group  Commercial agreements  Monthly  Contractual   187    
-
    187    
-
 
Santander Consumer Finance Limitada  Chile  Group  Advisory services and others  Monthly  Contractual   70    
-
    70    
-
 
Santander Global Technology and Operations, S.L. Unipersonal  Spain  Group  IT Services  Monthly  Contractual   
-
    49,744    
-
    
-
 
Mercury Trade Finance Solutions, S.p.A.  Chile  Group  IT Services  Monthly  Contractual   
-
    256    
-
    
-
 
Sociedad Operadora de Tarjetas de Pago Santander Getnet Chile S.A.  Chile  Group  Leases  Monthly  Contractual   415    
-
    415    
-
 
Santander Corredora de Seguros Limitada  Chile  Group  Insurance broker  Monthly  Contractual   87    
-
    87    
-
 
Centro de Compensación Automatizado, S.A.  Chile  Group  Derivatives clearing  Monthly  Contractual   
-
    2,184    
-
    
-
 
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A.  Chile  Group  Card operator  Monthly  Contractual   
-
    632    
-
    
-
 
PagoNxt Trade Services, S.L.  Spain  Group  Digital payments  Monthly  Contractual   
-
    284    
-
    
-
 

 

e.Payments to Board members and key management personnel

 

The compensation received by key management personnel, including Board members and all the executives holding manager positions shown in the “Personnel salaries and expenses” and/or “Administrative expenses” items of the Consolidated Statements of Income, corresponds to the following categories:

 

   For the years ended December 31,
   2023  2022  2021
   MCh$  MCh$  MCh$
Personnel compensation   21,409    20,280    16,067 
Board members’ salaries and expenses   1,711    1,692    1,539 
Bonuses or gratifications   16,402    17,794    18,458 
Stock-based benefits (*)   2,119    (1,169)   (315)
Seniority compensation   2,312    6    512 
Pension plans   (1,251)   849    (873)
Training expenses   38    50    113 
Health funds   374    357    271 
Other personnel expenses   827    791    807 
Total   43,941    40,650    36,579 

 

(*)Some of the executives that qualified for this benefit left the Group for different reasons, without complying with the requirements to receive the benefit, therefore the obligation amount decreased, which generated the reversal of provisions.

 

f.Composition of key personnel

 

As of December 31, 2023, 2022 and 2021, the composition of the Bank’s key personnel is as follows:

 

   N° of executives
Position  As of December 31,
   2023  2022  2021
Director   11    11    11 
Manager   122    124    100 
Total key personnel   133    135    111