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Risk Management (Tables)
 12 Months Ended
Dec. 31, 2023
Risk Management [Abstract]  
Schedule of High, Low and Average Levels High, low and average levels for each component for 2023 and 2022 were as follows:
VaR 

2023

USDMM

  

2022

USDMM

 
Consolidated        
High   6.81    6.23 
Low   2.61    2.73 
Average   4.09    4.41 
           
Fixed-income investments          
High   5.06    5.78 
Low   2.11    2.75 
Average   3.15    4.20 
           
Variable-income investments          
High   
-
    - 
Low   
-
    
-
 
Average   
-
    - 
           
Foreign currency investments          
High   5.79    4.82 
Low   0.23    0.17 
Average   2.20    1.14 
Schedule of Market Risk Financial Management Portfolio Market risk – Financial management portfolio – December 31, 2023 and 2022
   2023   2022 
   Effect on
financial
income		   Effect on
capital		   Effect on
financial
income		   Effect on
capital		 
                 
Financial management portfolio – local currency (MCh$)                
Loss limit   124.904    353.718    33,550    95,710 
High   79.657    173.389    23,982    57,176 
Low   41.151    88.382    15,459    39,957 
Average   62.740    133.464    21,366    49,580 
Financial management portfolio – foreign currency (Th$US)                    
Loss limit   157.400    174.889    38,231    43,329 
High   17.775    91.935    9,713    33,388 
Low   227    53.436    255    20,371 
Average   9.718    70.397    3,173    26,310 
Financial management portfolio – consolidated (in MCh$)                    
Loss limit   124.904    353.718    33,550    95,710 
High   75.816    283.550    28,699    76,738 
Low   34.663    246.664    16,515    66,098 
Average   64.477    268.776    23,438    71,003 
Schedule of Market Risk Exposure The following table illustrates the exposure to market risk.
   As of december 31,
   2023  2022
   MCh$  MCh$
Market risk – trading protfolio      
Exposure to rate risk   371,203    441,688 
Exposure to currency risk   9,130    1,535 
Interest rate option risk   
-
    
-
 
Currency option risk   3,167    1,145 
Total exposure of trading portfolio   383,500    444,368 
10% of RWA   479,374    555,460 
Subtotal   862,874    999,828 
Limit = Regulatory capital   6,978,733    6,759,047 
Available margin   6,115,859    5,759,219 
           
Market risk – short-term financial management portfolio          
Short Term Exposure to Interest Rate Risk   97,410    193,895 
Exposure to Infaltion Risk   161,222    112,523 
Short-term exposure of financial management portfolio   258,632    306,418 
Limit = 35% net (net income from interest and readjustments + interest rates sensitive commissions)   575,483    530,199 
Available margin   316,851    223,781 
           
Market risk – long-term financial management portfolio          
Long Term Exposure to Interest Rate Risk   1,057,637    1,194,181 
Limit = 35% Regulatory capital   2,442,556    2,365,666 
Available margin   1,384,919    1,171,485 
Schedule of Quality Assets and its Related Provision The following table shows quality assets and its related provision, based on our internal scoring policy as of December 31, 2023 and 2022:

December 31, 2023

Corporate loans

Corporate

Portfolio

  Stage 1  Stage 2  Stage 3 

Total

Corporate

  Percentage  Stage 1  Stage 2  Stage 3  Total ECL Allowance (*)  Percentage
   MCh$  MCh$  MCh$  MCh$  %  MCh$  MCh$  MCh$  MCh$  %
A1   28,006    
-
    
-
    28,006    0.07%   3    
-
    
-
    3    0.00%
A2   785,654    
-
    
-
    785,654    1.93%   452    
-
    
-
    452    0.04%
A3   2,803,228    29,491    
-
    2,832,719    6.94%   1,982    138    
-
    2,120    0.18%
A4   2,482,922    12,265    
-
    2,495,187    6.11%   2,474    60    
-
    2,534    0.22%
A5   2,732,502    47,927    765    2,781,194    6.81%   5,825    668    62    6,555    0.57%
A6   2,055,756    106,770    
-
    2,162,526    5.30%   8,905    2,227    
-
    11,132    0.97%
B1   331,242    285,756    106    617,104    1.51%   3,787    11,137    58    14,982    1.30%
B2   23,222    165,717    1,201    190,140    0.48%   242    7,717    289    8,248    0.72%
B3   
-
    98,961    5,618    104,579    0.27%   
-
    4,990    2,135    7,125    0.62%
B4   
-
    64,864    32,177    97,041    0.24%   
-
    3,682    8,656    12,338    1.07%
C1   
-
    36,299    178,279    214,578    0.53%   
-
    3,104    59,363    62,467    5.43%
C2   
-
    8,595    77,832    86,427    0.22%   
-
    733    25,793    26,526    2.31%
C3   
-
    4,612    99,892    104,504    0.26%   
-
    550    35,077    35,627    3.10%
C4   
-
    2,385    104,054    106,439    0.26%   
-
    311    45,025    45,336    3.94%
C5   
-
    1,182    110,548    111,730    0.27%   
-
    191    70,909    71,100    6.18%
C6   
-
    1,940    112,428    114,368    0.28%   
-
    206    95,689    95,895    8.33%
Subtotal   11,242,532    866,764    722,900    12,832,196    31.44%   23,670    35,714    343,056    401,229    35.00%
                                                   
   Other loans
   Stage 1  Stage 2  Stage 3  Total Other loans  Percentage  Stage 1  Stage 2  Stage 3  Total ECL Allowance  Percentage
   MCh$  MCh$  MCh$  MCh$  %  MCh$  MCh$  MCh$  MCh$  %
Other Commercial   4,375,334    486,303    446,264    5,307,901    13.01%   37,913    31,921    187,322    257,156    22.36%
Mortgage   14,635,723    1,713,185    724,531    17,073,439    41.83%   8,651    53,371    154,111    216,133    18.79%
Consumer   4,512,156    790,276    295,918    5,598,350    13.72%   57,429    83,897    132,936    274,262    23.85%
Subtotal   23,523,213    2,989,764    1,466,713    27,979,690    68.56%   103,993    169,189    474,369    747,551    65.00%
Total   34,765,745    3,856,528    2,189,613    40,811,886    100.00%   127,663    204,903    817,425    1,149,991    100.00%
(*)Include MCh$155,903 of ECL allowance calculated on an Individual basis.

 

December 31, 2022

Corporate loans

Corporate

Portfolio

  Stage 1  Stage 2  Stage 3 

Total

Corporate

  Percentage  Stage 1  Stage 2  Stage 3  Total ECL Allowance (*)  Percentage
   MCh$  MCh$  MCh$  MCh$  %  MCh$  MCh$  MCh$  MCh$  %
A1   40,121    
-
    
-
    40,121    0.10%   1    
-
    
-
    1    0.00%
A2   835,187    
-
    
-
    835,187    2.16%   472    
-
    
-
    472    0.04%
A3   2,362,324    36    
-
    2,362,360    6.10%   3,476    8    
-
    3,484    0.30%
A4   2,780,646    8    
-
    2,780,654    7.18%   5,761    
-
    
-
    5,761    0.50%
A5   2,811,300    13,132    792    2,825,224    7.29%   10,243    360    60    10,663    0.92%
A6   2,089,194    51,671    819    2,141,684    5.53%   18,766    2,226    98    21,090    1.83%
B1   
-
    736,674    2,627    739,301    1.91%   
-
    28,346    473    28,819    2.50%
B2   
-
    190,204    1,389    191,593    0.50%   
-
    12,895    195    13,090    1.14%
B3   
-
    71,873    3,129    75,002    0.20%   
-
    5,674    980    6,654    0.58%
B4   
-
    73,231    31,587    104,818    0.27%   
-
    6,210    8,420    14,630    1.27%
C1   
-
    34,141    164,778    198,919    0.51%   
-
    3,258    56,354    59,612    5.17%
C2   
-
    9,426    104,526    113,952    0.30%   
-
    502    26,992    27,494    2.38%
C3   
-
    1,518    93,311    94,829    0.24%   
-
    162    27,563    27,725    2.40%
C4   
-
    5,490    114,090    119,580    0.31%   
-
    693    49,572    50,265    4.36%
C5   
-
    3,414    81,321    84,735    0.22%   
-
    463    49,095    49,558    4.30%
C6   
-
    1,777    84,999    86,776    0.22%   
-
    297    65,960    66,257    5.74%
Subtotal   10,918,772    1,192,595    683,368    12,794,735    33.04%   38,719    61,094    285,762    385,575    33.43%
                                                   
   Other loans
   Stage 1  Stage 2  Stage 3  Total other loans  Percentage  Stage 1  Stage 2  Stage 3  Total ECL Allowance  Percentage
   MCh$  MCh$  MCh$  MCh$  %  MCh$  MCh$  MCh$  MCh$  %

Other

Commercial

   4,258,677    229,571    434,597    4,922,845    12.71%   44,535    30,262    201,195    275,992    23.93%
Mortgage   14,672,080    367,467    689,462    15,729,009    40.61%   19,388    10,462    132,906    162,756    14.11%
Consumer   4,826,096    217,866    238,850    5,282,812    13.64%   94,203    73,973    160,768    328,944    28.52%
Subtotal   23,756,853    814,904    1,362,909    25,934,666    66.96%   158,126    114,697    494,869    767,692    66.57%
Total   34,675,625    2,007,499    2,046,277    38,729,401    
100,00
%   196,845    175,791    780,631    1,153,267    100.00%
(*)Include MCh$105,837 of ECL allowance calculated on an Individual basis.

 
Schedule of Residual Maturity Over Measured that have not Expired
Other commercial  Corporate loans
Mortgages  Other loans 

Revolving

(Credit cards)

  SME  SME  Middle market  Corporate and
Investment Banking
 28.41%   36.05%   11.28%   36.05%   19.60%   13.26%  Santander Group criteria
Other commercial  Corporate loans
Mortgages  Other loans 

Revolving

(Credit cards)

  SME  SME  Middle market  Corporate and
Investment Banking
 28.19%   49.32%   16.91%   49.32%   18.50%   16.36%  Santander Group criteria
Other commercial  Corporate loans
Mortgages  Other loans 

Revolving

(Credit cards)

  SME  SME  Middle market  Corporate and Investment Banking
Irregular portfolio > 30 days  Irregular portfolio > 30 days  Irregular portfolio > 30 days  Irregular portfolio > 30 days  Irregular portfolio > 30 days  Irregular portfolio > 30 days  Irregular portfolio > 30 days
Restructured  marked for monitoring  Restructured  marked for monitoring  Restructured  marked for monitoring  Restructured  marked for monitoring  Restructured  marked for monitoring  Restructured  marked for monitoring  Restructured  marked for monitoring
            Clients considered to be substandard or in incompliance (pre-legal action)  Clients considered to be substandard or in incompliance (pre-legal action)  Clients considered to be substandard or in incompliance (pre-legal action)
Schedule of Allowance and Exposure at Default (Ead) of the Loans The following table shows the allowance and exposure at default (EAD) of the loans that meet the conditions:
   2023  2022
   MCh$  MCh$
Loans and account receivable   347,477    308,586 
Allowance for ECL – discounted cash flow methodology   155,903    105,837 
   2023  2022
   MCh$  MCh$
Loans and account receivable (commercial, mortgage and consumer loans)   40,464,409    38,420,815 
Allowance for ECL – collective basis   994,088    1,074,430 
Schedule of Modified Loans The following table shows modification that results in deregonition and therefore and new operations:
   As of December 31, 2023  As of December 31, 2022
   Stage 1  Stage 2  Stage 3  Total  Stage 1  Stage 2  Stage 3  Total
   MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$
Gross carrying amount   34.765.745    3.856.528    2.189.613    40.811.886    34,675,625    2,007,499    2,046,277    38,729,401 
Modified loans   
-
    739,474    1,026,843    1,766,317    
-
    679,496    799,559    1,479,055 
%   
-
    
19,17
%   
46,90
%   
4,33
%   
-
    33.85%   39.07%   3.82%
                                         
ECL allowance   127,663    204,903    817,425    1,149,991    196,845    175,791    780,631    1,153,267 
Modified loans   
-
    48.419    360.975    409.394    
-
    60,584    325,650    386,234 
%   
-
    
23,63
%   
44,16
%   
35,60
%   
-
    34.46%   41.72%   33.49%
Schedule of Macro Economical Forward The annual growth forecasts for the most relevant macroeconomic variables for each of our scenarios mainly used during 2023 are as follows:
   Average estimates 2023
   Unfavorable
scenario 2		  Unfavorable
scenario 1		  Base
scenario		  Favorable
scenario 1		  Favorable
scenario 2
Chilean Central Bank interest rates   3.7%   4.6%   6.5%   8.4%   9.3%
Unemployment rate   10.4%   9.7%   8.3%   6.9%   6.2%
Housing Price growth   (0.1)%   0.9%   2.9%   5.0%   6.0%
GDP growth   (2.7)%   (1.5)%   0.8%   3.1%   4.3%
Consumer Price Index   3.3%   4.2%   6.0%   7.9%   8.8%

 

The new macroeconomic variables are shown below:
   Average estimates 2024
   Unfavorable
scenario 2		  Unfavorable
scenario 1		  Base scenario  Favorable
scenario 1		  Favorable
scenario 2
Chilean Central Bank interest rates   0.85%   2.32%   4.25%   6.18%   7.65%
Unemployment rate   10.03%   8.89%   7.4%   5.91%   4.77%
Housing Price growth   (1.02)%   
0,62
%   2.78%   4.94%   6.59%
GDP growth   (0.8)%   1.1%   3.58%   6.06%   7.97%
Consumer Price Index   1.07%   0.67%   3.00%   5.33%   7.07%
Schedule of Probabilities
Local scenario  Global scenario
   Probability
weighting		     Probability
weighting
Favorable scenario 2   10%  Favorable scenario 1   10%
Favorable scenario 1   15%  Base scenario   20%
Base scenario   50%  Unfavorable scenario 1   70%
Unfavorable scenario 1   15%        
Unfavorable scenario 2   10%        
Schedule of Allowance Sensibility The ECL allowance sensibility to future macro-economic conditions is as follows:
   As of December 31,
   2023  2022
   MCh$  MCh$
Reported ECL allowance   1,150,116    1,153,593 
Gross carrying amount   40,917,268    38,872,033 
           
Reported ECL Coverage   2.81%   2.97%
           
ECL amount by scenarios          
Favorable scenarios 2   970,411    1,034,417 
Favorable scenarios 1   1,032,708    1,061,899 
Base scenarios   1,104,368    1,138,881 
Unfavorable scenarios 2   1,176,477    1,227,979 
Unfavorable scenarios 2   1,224,340    1,268,948 
           
Coverage ratio by scenarios          
Favorable scenarios 2   2.37%   2.68%
Favorable scenarios 1   2.52%   2.75%
Base scenarios   2.70%   2.95%
Unfavorable scenarios 2   2.88%   3.19%
Unfavorable scenarios 2   2.99%   3.29%

 
Schedule of Risk Concentration The following table shows the risk concentration by industry, and by stage before ECL allowance of loans and account receivable from customers and Interbak loans at amortised cost:
   As of December 31,
   2023  2022
   Stage 1  Stage 2  Stage 3  Total  Stage 1  Stage 2  Stage 3  Total
   MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$
Commercial loans                        
Agriculture and livestock   478,676    70,687    74,110    623,473    487,463    103,160    64,524    655,147 
Fruit cultivation   444,600    107,445    94,564    646,609    430,046    148,116    52,404    630,566 
Forest   108,232    10,901    20,390    139,523    134,192    20,162    16,402    170,756 
Fishing   290,978    14,655    7,763    313,396    261,651    13,479    9,268    284,398 
Mining   228,565    5,578    7,656    241,799    241,704    11,590    7,160    260,454 
Oil and natural gas   3,146    199    191    3,536    88,588    1    145    88,734 
                                         
Manufacturing Industry:                                        
Food, beverages and tobacco   301,193    15,366    25,278    341,837    316,574    45,972    14,896    377,442 
Textile, leather and footwear   64,068    5,679    7,345    77,092    65,269    12,102    6,029    83,400 
Wood and furniture   78,856    2,438    6,894    88,188    75,962    4,676    5,327    85,965 
Cellulose, paper and printing   61,702    9,035    4,995    75,732    50,984    9,977    4,864    65,825 
Chemicals and petroleum derivatives   108,011    3,187    1,306    112,504    147,113    5,631    1,185    153,929 
Metallic, non-metallic, machinery, or other   319,322    13,870    21,715    354,907    323,717    15,678    23,511    362,906 
Other manufacturing industries   194,742    19,248    19,392    233,382    201,044    15,245    20,210    236,499 
Electricity, gas, and wáter   910,813    10,497    5,032    926,342    881,647    14,178    5,952    901,777 
Home building   164,118    29,377    23,118    216,613    181,933    33,493    24,103    239,529 
Non-residential construction   472,579    28,395    48,231    549,205    537,110    34,437    57,723    629,270 
Wholesale trade   1,420,083    105,396    163,872    1,689,351    1,368,044    161,570    147,330    1,676,944 
Retail trade, restaurants and hotels   1,501,379    74,975    87,365    1,663,719    1,366,605    86,124    89,924    1,542,653 
Transport and storage   600,729    56,933    54,860    712,522    625,506    90,913    59,141    775,560 
Telecommunications   450,555    16,341    7,261    474,157    334,065    16,522    7,446    358,033 
Financial services   575,666    2,656    912    579,234    374,770    4,166    2,864    381,800 
Real estate services   2,237,404    231,680    154,694    2,623,778    2,221,740    210,683    197,360    2,629,783 
Social services and other community services   4,602,449    518,529    332,220    5,453,198    4,461,722    364,291    300,197    5,126,210 
Subtotal   15,617,866    1,353,067    1,169,164    18,140,097    15,177,449    1,422,166    1,117,965    17,717,580 
Mortgage loans   14,635,723    1,713,185    724,531    17,073,439    14,672,080    367,467    689,462    15,729,009 
Consumer loans   4,512,156    790,276    295,918    5,598,350    4,826,096    217,866    238,850    5,282,812 
Total   34,765,745    3,856,528    2,189,613    40,811,886    34,675,625    2,007,499    2,046,277    38,729,401 

 
Schedule of Loans and Account Receivable from Customers and Interbak Loans The following table shows past due information related to loans and account receivable from customers and Interbak loans at amortised cost, and related ECL allowance:
   As of December 31, 2023
   Gross carrying amount  ECL allowance
   Stage 1  Stage 2  Stage 3  TOTAL  Stage 1  Stage 2  Stage 3  TOTAL
   MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$
Interbank loans                                        
Current   68,440    
-
    
-
    68,440    2    
-
    
-
    2 
Commercial loans                                        
Current   15,505,706    1,181,694    362,298    17,049,698    58,096    49,896    119,514    227,506 
1-30 days past due   41,357    102,214    90,367    233,938    3,357    9,164    33,921    46,442 
31-90 days past due   2,363    69,159    166,427    237,949    128    8,575    57,548    66,251 
Over 90 days past due   
-
    
-
    550,072    550,072    
-
    
-
    319,395    319,395 
Mortgage loans                                        
Current   14,612,117    1,285,324    222,874    16,120,315    8,224    34,149    39,964    82,337 
1-30 days past due   19,150    278,114    101,086    398,350    327    11,923    21,627    33,877 
31-90 days past due   4,456    149,747    192,972    347,175    100    7,299    37,612    45,011 
Over 90 days past due   
-
    
-
    207,599    207,599    
-
    
-
    54,908    54,908 
Consumer loans                                        
Current   4,492,189    561,846    61,444    5,115,479    54,038    32,294    26,654    112,986 
1-30 days past due   18,497    133,011    26,198    177,706    3,150    25,139    10,968    39,257 
31-90 days past due   1,470    95,419    94,189    191,078    241    26,464    39,259    65,964 
Over 90 days past due   
-
    
-
    114,087    114,087    
-
    
-
    56,055    56,055 
Total   34,765,745    3,856,528    2,189,613    40,811,886    127,663    204,903    817,425    1,149,991 
   As of December 31, 2022
   Gross carrying amount  ECL allowance
   Stage 1  Stage 2  Stage 3  TOTAL  Stage 1  Stage 2  Stage 3  TOTAL
   MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$
Interbank loans                                        
Current   32,991              32,991    1              1 
Commercial loans                                        
Current   15,083,757    1,291,497    480,276    16,855,530    76,241    74,402    156,800    307,443 
1-30 days past due   55,298    80,205    62,775    198,278    6,591    8,311    19,048    33,950 
31-90 days past due   5,403    50,464    145,041    200,908    421    8,643    56,981    66,045 
Over 90 days past due   
-
    
-
    429,873    429,873    
-
    
-
    254,128    254,128 
Mortgage loans                                        
Current   14,559,586    195,691    301,854    15,057,131    17,984    4,699    57,624    80,307 
1-30 days past due   96,080    114,723    84,207    295,010    1,183    3,727    16,900    21,810 
31-90 days past due   16,414    57,053    112,280    185,747    221    2,036    18,605    20,862 
Over 90 days past due   
-
    
-
    191,121    191,121    
-
    
-
    39,777    39,777 
Consumer loans                                        
Current   4,767,906    74,555    60,169    4,902,630    76,215    23,738    44,107    144,060 
1-30 days past due   52,878    66,958    24,898    144,734    17,139    19,003    16,616    52,758 
31-90 days past due   5,312    76,353    62,129    143,794    849    31,232    38,137    70,218 
Over 90 days past due   
-
    
-
    91,654    91,654    
-
    
-
    61,908    61,908 
Total   34,675,625    2,007,499    2,046,277    38,729,401    196,845    175,791    780,631    1,153,267 

 
Schedule of Financial Assets and Associated Collateral The following table show the maximum exposure to credit risk by class of financial asset, associated collateral and the net exposure to credit risk:
   As of December 31,
   2023  2022
   Maximum
exposure to
credit risk		  Collateral  Net
exposure		  Associated
ECL		  Maximum
exposure to
credit risk		  Collateral  Net
exposure		  Associated
ECL
   MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$  MCh$
Interbank loans   68,440    3,677    64,763    2    32,991    -    32,991    1 
Commercial loans   18,071,657    9,893,336    8,178,321    659,594    17,684,589    9,945,505    7,739,084    661,566 
Mortgage loans   17,073,439    16,589,333    484,106    216,133    15,729,009    15,358,111    370,898    162,756 
Consumer Loans   5,598,350    586,050    5,012,300    274,262    5,282,812    593,660    4,689,152    328,944 
Contingent loans exposure   2,701,525    378,648    2,322,877    21,105    3,048,383    476,327    2,572,056    44,997 
Total   43,513,411    27,451,044    16,062,367    1,171,096    41,777,784    26,373,603    15,404,181    1,198,264 
Schedule of Maximum Exposure to Credit Risk For financial assets recognised in the Consolidated Statements of Financial Position, maximum credit risk exposure equals their carrying value. Below is the distribution by financial asset and off-balance sheet commitments of the Bank’s maximum exposure to credit risk as of December 31, 2023 and 2022, without deduction of collateral, security interests or credit improvements received:
       As of December 31, 
       2023   2022 
       Amount of exposure   Amount of exposure 
   Note   MCh$   MCh$ 
Deposits in banks   4    2,273,282    1,982,942 
Cash items in process of collection   4    812,524    843,816 
Financial assets for trading at FVTPL   5           
Financial derivative contracts        10,119,486    11,672,960 
Financial assets held for trading        98,308    154,046 
Financial assets at FVOCI   6           
Debt financial instruments        4,536,025    5,800,733 
Other financial instruments        105,257    142,306 
Financial derivative contracts for hedge accounting   7    605,529    477,762 
Financial assets at amortised cost   8           
Debt financial instruments        8,176,895    4,867,591 
Interbank loans        68,438    32,990 
Loans and account receivable at amortised cost /        39,593,457    37,543,144 
Off-balance commitments:               
Letters of credit issued        262,496    255,522 
Foreign letters of credit confirmed        1,641,510    1,476,599 
Performance guarantees        9,490,141    8,974,077 
Available credit lines        494,104    924,173 
Personal guarantees        813    1,617 
Other irrevocable credit commitments        313,505    313,345 
Total        70,041,770    75,463,623 
Schedule of Fair Value of Derivative Instruments Below, there are additional details regarding our exposure for those countries classified above 1 and represents our majority of exposure to categories other than 1. As of December 31, 2023, considering fair value of derivative instruments.
Country   Classification     Derivative Instruments
(adjusted to market) 		    Deposits     Loans     Financial
investments		     Total
Exposure		  
          US$ millions  
Hong Kong         2      
   -
         7      
 -
      
   -
       7  
Italy     2      
-
       1      
-
      
-
       1  
Mexico     3       3      
-
      
-
      
-
       3  
China     2      
-
      
-
       1      
-
       1  
Total             3       8       1      
-
       12  

 

Counterpart  Country  Classification   Derivative
instruments
(market adjusted)		  

Deposits

MUSD

  

Loans

MUSD

  

Financial

Investments

MUSD

  

Exposure

MUSD

 
          US$ millions 
Banco Santander Hong Kong  Hong Kong        2    
  -
    7    
   -
    
    -
    7 
Banco Santander Mexico  Mexico   3    3    
-
    
-
    
-
    3 
Banco Santander EEUU *  EEUU   1    41    700    
-
    
-
    741 
Santander UK PLC  UK   1    
-
    1    
-
    
-
    1 
Banco Santander España  Spain   1    292    46    
-
    
-
    338 
*Includes BSCH SA New York and Santander InvestmentSecuries
Schedule of Security Interests, Collateral, or Credit Improvements Below is the detail of security interests, collateral, or credit improvements provided to the Bank as of December 31, 2023 and 2022:
   As of December 31, 
   2023   2022 
   MCh$   MCh$ 
Non-impaired financial assets        
Properties/mortgages   29,279,845    28,012,572 
Investments and others   5,300,893    4,441,058 
Impaired financial assets          
Properties/ mortgages   2,444,084    2,009,968 
Investments and others   293,347    274,296 
Total   37,318,169    34,737,894 

 
Schedule of Breakdown of Bank's Fixed Income by Levels
   As of December 31, 
ALAC  2023   2022 
   MCh$   MCh$ 
Level 1: cash and cash equivalent   1,969,547    1,453,265 
Level 2: fixed income   6,072,282    5,424,452 
Level 2: fixed income   6,240    8,066 
Total   8,048,069    6,885,783 
Schedule of Liquidity Coverage Ratio
   As of December 31, 
Liquidity Coverage Ratio  2023   2022 
  %   % 
LCR   212    175 
Schedule of Net Stable Funding Ratio
   As of December 31, 
Net Stable Funding Ratio  2023   2022 
   %   % 
NSFR   106    116 
Schedule of Breakdown by Maturity
   As of December 31, 2023 
   Individual   Consolidated 
   Up to 7
days		   Up to 15
days		   Up to 30
days		   Up to 7
days		   Up to 15
days		   Up to 30
days		 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Cash flow receivable (assets) and income   7,874,553    3,217,485    2,017,597    7,991,785    3,230,081    2,009,451 
Cash flow payable (liabilities) and expenses   10,475,218    2,119,787    2,498,713    10,411,396    2,119,787    2,498,985 
Mismatch   (2,600,665)   1,097,698    (481,116)   (2,419,611)   1,110,294    (489,534)
                               
Mismatch affected by limits             (1,984,083)             (1,798,851)
Limits:                              
1 time capital             4,367,159              4,491,893 
Margin available             2,383,076              2,693,042 
% used             45%             40%

 

   As of December 31, 2022 
   Individual   Consolidated 
   Up to 7
days		   Up to 15
days		   Up to 30
days		   Up to 7
days		   Up to 15
days		   Up to 30
days		 
   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$ 
Cash flow receivable (assets) and income   9,123,887    1,805,516    3,552,792    9,269,188    1,804,580    3,514,336 
Cash flow payable (liabilities) and expenses   9,295,580    1,855,664    2,702,150    9,320,125    1,855,664    2,707,135 
Mismatch   (171,693)   (50,148)   850,642    (50,937)   (51,084)   807,201 
                               
Mismatch affected by limits             628,801              705,180 
Limits:                              
1 time capital             4,128,808              4,238,372 
Margin available             4,757,609              4,943,552 
% used             15%             17%
Schedule of Main Sources of Financing with Third Parties The main sources of financing with third parties are the following:
   As of December 31, 
Main sources of financing  2023   2022 
   MCh$   MCh$ 
Deposits and other demand obligations   13,537,826    14,086,226 
Time deposits   16,137,942    12,978,790 
Bank obligations   10,366,499    8,864,765 
Debt instruments issued and regulatory capital   8,001,045    9,490,009 
Total   48,043,312    45,419,790 
Schedule of Net Losses from Operational Risks
   As of December 31, 
   2023   2022 
   MCh$   MCh$ 
Expenses for the gross loss period due to operational risk events        
Internal fraud   1,367    91 
External fraud   7,202    8,513 
Labor Practices and Business Safety   6,887    8,095 
Clients, products and business practices   950    789 
Damage to physical assets   267    221 
Business interruption and system failures   964    981 
Process execution, delivery and management   7,303    3,624 
Subtotal   24,940    22,314 
Recoveries of expenses in the period due to operational risk events          
Internal fraud   -    - 
External fraud   (5,810)   (2,194)
Labor Practices and Business Safety   (1,276)   (1,391)
Clients, products and business practices   (189)   (673)
Damage to physical assets   (12)   - 
Business interruption and system failures   (800)   (2)
Process execution, delivery and management   (2,885)   (809)
Subtotal   (10,972)   (5,069)
           
Net loss from operational risk events   13,968    17,245 

 
Schedule of Total Assets, Risk-Weighted Assets, and Components of Effective Equity
            Total assets, risk-weighted assets and components of effective equity according to Basel III           Consolidated
global
31-12-2023
MCh$		             Consolidated
global
31-12-2022
MCh$		      
1  Total assets according to the statement of financial position   70,857,886    68,164,604 
2  Investment in subsidiaries that are not consolidated        
-
 
3  Assets discounted from regulatory capital, other than item 2   10,823,906    12,270,810 
4  Credit equivalents   3,446,909    2,890,350 
5  Contingent credits   2,604,665    2,776,542 
6  Assets generated by the intermediation of financial instruments   33,260    243,345 
7  = (1-2-3+4+5-6) Total assets for regulatory purposes   66,052,294    61,317,341 
8.a  Assets weighted for credit risk, estimated according to the standard methodology (RAW)   30,333,749    28,401,718 
8.b  Assets weighted for credit risk, estimated according to internal methodologies (AWCR)   
-
    
-
 
8  Market Risk Weighted Assets (MRWA)   4,793,740    5,554,604 
10  Operational Risk Weighted Assets (OPWA)   4,424,739    4,070,594 
11.a  = (8.a/8.b+9+10) Risk Weighted Assets (RWA)   39,552,228    38,026,916 
11.b  = (8.a/8.b+9+10) Risk-weighted assets, after applying the output floor (RWA)   39,552,228    38,026,916 
12  Shareholders equity   4,367,159    4,128,808 
13  Non-controlling interest   124,735    109,563 
14  Goodwill   
-
    
-
 
15  Excess minority investment   
-
    
-
 
16  = (12+13-14-15) Common Equity Equivalent Tier 1 Capital (CET1)   4,491,894    4,238,371 
17  Additional deductions to common equity tier 1, other than item 2   94,013    25,455 
18  = (16-17-2) Common Equity Tier 1 (CET1)   4,397,881    4,212,916 
19  Voluntary (additional) provisions charged as additional capital tier 1 (AT1)   
-
    
-
 
20  Subordinated bonds imputed as additional capital level 1 (AT1)   
-
    190,135 
21  Preferred shares attributed to additional capital tier 1 (AT1)   
-
    
-
 
22  Perpetual bonds attributed to additional capital level 1 (AT1)   608,721    590,247 
23  Discounts applied to AT1   
-
    
-
 
24  = (19+20+21+22-23) Additional Tier 1 Capital (AT1)   608,721    780,382 
25  = (18+24) Equity Tier 1   5,006,602    4,993,298 
26  Voluntary (additional) provisions allocated as Tier 2 (T2) capital   293,000    293,000 
27  Subordinated bonds imputed as Tier 2 capital (T2)   1,679,130    1,472,749 
28  = (26+27) Capital nivel 2 equivalente (T2)   1,972,130    1,765,749 
29  Discounts applied to T2   
-
    
-
 
30  = (28-29) Tier 2 Capital (T2)   1,972,130    1,765,749 
31  = (25+30) Effective equity   6,978,732    6,759,047 
32  Additional basic capital required for the constitution of the conservation buffer   461,934    444,662 
33  Additional basic capital required to set up the countercyclical buffer   
-
    
-
 
34  Additional core capital required for banks rated as systemic   296,642    142,601 
35  Additional capital required for the evaluation of the adequacy of effective capital (Pillar 2)   
-
    
-
 

 
Schedule of Solvency Indicators and Regulatory Compliance Indicators According to Basel III
            Solvency indicators and regulatory compliance indicators according to Basel III           Consolidated
global
31-12-2023
%		             Consolidated
global
31-12-2022
%		      
1  Leverage indicator (T1_I18/T1_I7)   6.66%   6.87%
1.a  Leverage indicator that the bank must meet, considering the minimum requirements   3.00%   3.00%
2  Basic capital indicator (T1_I18/T1_I11,b)   11.12%   11.08%
2.a  Basic capital indicator that the bank must meet, considering the minimum requirements   5.25%   4.88%
2.b  Capital buffer shortfall   
 
    
 
 
3  Tier 1 capital indicator (T1_I25/T1_I11,b)   12.66%   13.13%
3.a  Tier 1 capital indicator that the bank must meet, considering the minimum requirements   6.75%   6.38%
4  Effective equity indicators (T1_I31/T1_I11,b)   17.64%   17.77%
4.a  Effective equity indicator that the bank must meet, considering the minimum requirements   8.75%   8.38%
4.b  Effective equity indicator that the bank must meet, considering the charge for article 35 bis, if applicable   8.00%   8.00%
4.c  Effective equity indicator that the bank must meet, considering the minimum requirements, conservation buffer and anti-cyclical buffer   10.63%   9.63%
5  Credit rating   A    A 
   Regulatory compliance indicators for solvency          
6  Voluntary (additional) provisions allocated to Tier 2 capital (T2) in relation to APRCs (T1_I26/ (T1_I8,a or I8,b)   0.97%   1.03%
7  Subordinated bonds allocated to Tier 2 (T2) capital in relation to Tier 2 capital   38.18%   34.96%
8  Additional Tier 1 capital (AT1) in relation to basic capital (T1_I24/T1_I18)   13.84%   18.52%
9  Voluntary provisions (additional) and subordinated bonds that are charged to additional capital level 1 (AT1) in relation to the RWAs (T1_I19+T1_I20 / T1_I11,b)   0.00%   0.50%