Interim Consolidated Financial Statements
As of September 30, 2023 and December 31, 2022 and for the nine and three months ended September 30, 2023 and 2022
CONTENT
Interim Consolidated Statements of Financial Position
Interim Consolidated Statements of Income
Interim Consolidated Statements of Other Comprehensive Income
Interim Consolidated Statements of Changes in Equity
Interim Consolidated Statements of Cash Flows
Notes to the Interim Consolidated Financial Statements
Table of contents | |
INTERIM CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME | |
NOTE 3 - NEW ACCOUNTING PRONOUNCEMENTS ISSUED AND ADOPTED, OR ISSUED BUT NOT YET ADOPTED | 29 |
NOTE 4 - ACCOUNTING CHANGES | 32 |
NOTE 5 - SIGNIFICANT EVENTS | 33 |
NOTE 6 - BUSINESS SEGMENTS | 34 |
NOTE 7 - CASH AND CASH EQUIVALENTS | 36 |
NOTE 8 - FINANCIAL ASSETS HELD FOR TRADING AT FAIR VALUE THROUGH PROFIT OR LOSS | 36 |
NOTE 9 - FINANCIAL ASSETS NOT HELD FOR TRADING MANDATORILY MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS | 37 |
NOTE 10 - FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 37 |
NOTE 11 - FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 38 |
NOTE 12 - FINANCIAL DERIVATIVES CONTRACT FOR ACCOUNTING HEDGE | 39 |
NOTE 13 - FINANCIAL ASSETS AT AMORTIZED COST | 44 |
NOTE 14 - INVESTMENTS IN COMPANIES | 60 |
NOTE 15 - INTANGIBLE ASSETS | 60 |
NOTE 16 - PROPERTY AND EQUIPMENT | 62 |
NOTE 17 - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | 63 |
NOTE 18 - CURRENT TAXES AND DEFERRED TAXES | 64 |
NOTE 19 - OTHER ASSETS | 66 |
NOTE 20 - NON-CURRENT ASSETS AND DISPOSAL GROUP HELD FOR SALE AND LIABILITIES INCLUDED IN DISPOSAL GROUP HELD FOR SALE | 66 |
NOTE 21 - FINANCIAL LIABILITIES HELD FOR TRADING AT FAIR VALUE THROUGH PROFIT OR LOSS | 67 |
NOTE 22 - FINANCIAL LIABILITIES AT AMORTIZED COST | 68 |
NOTE 23 - REGULATORY CAPITAL FINANCIAL INSTRUMENTS ISSUED | 73 |
NOTE 24 - PROVISIONS FOR CONTINGENCIES | 74 |
NOTE 25 - PROVISIONS FOR DIVIDENDS, INTEREST PAYMENTS AND REVALUATION OF REGULATORY CAPITAL FINANCIAL INSTRUMENTS | 75 |
NOTE 26 - SPECIAL PROVISIONS FOR CREDIT LOSS | 75 |
NOTE 27 - OTHER LIABILITIES | 77 |
NOTE 28 - EQUITY | 77 |
NOTE 29 - CONTINGENCIES AND COMMITMENTS | 80 |
NOTE 30 - INTEREST INCOME AND EXPENSES | 82 |
NOTE 31 - INFLATION-INDEXATION INCOME AND EXPENSES | 83 |
NOTE 32 - FEE INCOME AND EXPENSES | 84 |
NOTE 33 - NET FINANCIAL INCOME (EXPENSE) | 85 |
NOTE 34 - INCOME FROM INVESTMENTS IN COMPANIES | 86 |
NOTE 36 - OTHER OPERATING INCOME AND EXPENSES | 87 |
NOTE 37 - EXPENSES FOR EMPLOYEE BENEFITS | 88 |
NOTE 38 - ADMINISTRATIVE EXPENSES | 88 |
NOTE 39 - DEPRECIATION AND AMORTIZATION | 89 |
NOTE 40 - IMPAIRMENT OF NON-FINANCIAL ASSETS | 89 |
NOTE 41 - EXPENSES FOR CREDIT LOSSES | 89 |
NOTE 42 - PROFIT OR LOSS FROM DISCONTINUED OPERATIONS | 91 |
NOTE 43 - RELATED PARTIES DISCLOSURES | 92 |
NOTE 44 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 96 |
NOTE 45 - MATURITY OF FINANCIAL ASSETS AND LIABILITIES AS PER THEIR REMAINING TERMS | 99 |
NOTE 46 - FINANCIAL AND NON-FINANCIAL ASSETS AND LIABILITIES BY CURRENCY | 100 |
NOTE 47 - RISK MANAGEMENT AND REPORTING | 102 |
NOTE 48 - INFORMATION ON REGULATORY CAPITAL AND CAPITAL ADEQUACY RATIOS | 124 |
NOTE 49 - SUBSEQUENT EVENTS | 126 |
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2023 and December 31, 2022
(In millions of Chilean pesos - MCh$)
September 30, | December 31, | ||
2023 | 2022 | ||
Note | MCh$ | MCh$ | |
ASSETS | |||
Cash and bank deposits | 7 | 3,804,705 | 4,256,396 |
Transactions in the course of collection | 7 | 641,205 | 404,209 |
Financial assets held for trading at fair value through profit or loss | 7,754,969 | 7,680,615 | |
Financial derivative contracts | 8 | 6,673,204 | 6,770,653 |
Debt financial instruments | 8 | 993,204 | 770,101 |
Other | 8 | 88,561 | 139,861 |
Financial assets not held for trading mandatorily measured at fair value through profit or loss | 9 | 48,679 | 71,282 |
Financial assets at fair value through profit or loss | 10 | - | - |
Financial assets at fair value through other comprehensive income | 10,226,620 | 10,477,361 | |
Debt financial instruments | 11 | 10,226,620 | 10,477,361 |
Other | 11 | - | - |
Financial derivative contracts for accounting hedge | 12 | 2,077,582 | 1,788,851 |
Financial assets at amortized cost | 52,821,177 | 49,830,891 | |
Rights for reverse repurchase agreements and securities lending | 13 | 216,166 | 182,061 |
Debt securities | 13 | 3,748,946 | 3,581,998 |
Loans and advances to banks | 13 | 739,142 | 767,700 |
Loans and receivables from customers - Commercial | 13 | 31,731,967 | 29,276,944 |
Loans and receivables from customers - Mortgage | 13 | 13,532,472 | 12,809,381 |
Loans and receivables from customers - Consumer | 13 | 2,852,484 | 3,212,807 |
Investments in companies | 14 | 179,294 | 175,736 |
Intangible assets | 15 | 427,463 | 411,009 |
Property and equipment | 16 | 250,513 | 249,105 |
Right-of-use assets | 17 | 142,864 | 152,886 |
Current tax assets | 18 | 151,354 | 138,066 |
Deferred tax assets | 18 | 471,820 | 482,714 |
Other assets | 19 | 1,891,500 | 1,895,064 |
Non-current assets and disposal groups held for sale | 20 | 43,404 | 34,934 |
TOTAL ASSETS | 80,933,149 | 78,049,119 |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 1
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2023 and December 31, 2022
(In millions of Chilean pesos - MCh$)
September 30, | December 31, | ||
2023 | 2022 | ||
Note | MCh$ | MCh$ | |
LIABILITIES | |||
Transactions in the course of payment | 7 | 580,011 | 330,138 |
Financial liabilities held for trading at fair value through profit or loss | 21 | 6,222,461 | 6,584,736 |
Financial derivative contracts | 21 | 6,222,461 | 6,584,736 |
Other | 21 | - | - |
Financial liabilities designated at fair value through profit or loss | 10 | - | - |
Financial derivative contracts for accounting hedge | 12 | 2,575,932 | 2,590,468 |
Financial liabilities at amortized cost | 62,257,908 | 59,760,444 | |
Deposits and other on-demand liabilities | 22 | 23,771,943 | 24,122,165 |
Deposits and other term deposits | 22 | 20,797,237 | 18,245,965 |
Liabilities for repurchase agreements and securities lending | 22 | 667,367 | 384,883 |
Bank borrowings | 22 | 6,966,703 | 6,661,071 |
Debt financial instruments issued | 22 | 8,012,426 | 8,107,260 |
Other financial liabilities | 22 | 2,042,232 | 2,239,100 |
Lease liabilities | 17 | 127,957 | 136,448 |
Regulatory capital financial instruments issued | 23 | 1,536,927 | 1,499,299 |
Provisions for contingencies | 24 | 152,436 | 227,716 |
Provisions for dividends, payment of interests and revaluation of regulatory capital financial | |||
instruments issued | 25 | 150,576 | 246,247 |
Special provisions for credit loss | 26 | 503,715 | 491,055 |
Current taxes | 18 | 10,014 | 17,493 |
Deferred taxes | 18 | 2,368 | 1,612 |
Other liabilities | 27 | 1,517,586 | 1,386,662 |
Liabilities included in disposal groups held for sale | 20 | - | - |
TOTAL LIABILITIES | 75,637,891 | 73,272,318 | |
EQUITY | |||
Share capital | 28 | 4,768,410 | 4,225,332 |
Reserves | 28 | - | (26,640) |
Accumulated other comprehensive income | 28 | 174,051 | 2,211 |
Items that will not be reclassified to profit or loss | 28 | 127 | (182) |
Items that may be reclassified to profit or loss | 28 | 173,924 | 2,393 |
Retained earnings from prior years | 28 | - | - |
Profit for the period/year | 28 | 501,921 | 820,822 |
Less: Provisions for dividends, payment of interests and revaluation of regulatory capital financial | 28 | (246,247) | |
instruments issued | (150,576) | ||
Owners of the bank | 28 | 5,293,806 | 4,775,478 |
Non-controlling interests | 28 | 1,452 | 1,323 |
TOTAL EQUITY | 5,295,258 | 4,776,801 | |
TOTAL LIABILITIES AND EQUITY | 80,933,149 | 78,049,119 | |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 2
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF INCOME
For the nine and three-month periods ended September 30, 2023 and 2022 (In millions of Chilean pesos - MCh$)
For the nine months ended | For the three months ended | ||||
September 30 | September 30 | ||||
2023 | 2022 | 2023 | 2022 | ||
Note | MCh$ | MCh$ | MCh$ | MCh$ | |
Interest income | 3,055,601 | 1,984,793 | 1,075,653 | 817,910 | |
Interest expenses | (1,900,441) | (832,557) | (692,307) | (416,891) | |
Net interest income | 30 | 1,155,160 | 1,152,236 | 383,346 | 401,019 |
Inflation-indexation income | 617,052 | 1,122,673 | 139,321 | 401,778 | |
Inflation-indexation expenses | (305,258) | (552,495) | (47,835) | (224,948) | |
Net inflation-indexation income | 31 | 311,794 | 570,178 | 91,486 | 176,830 |
Fee income | 379,854 | 381,894 | 129,915 | 129,701 | |
Fee expense | (125,556) | (107,219) | (41,827) | (36,509) | |
Net fee income | 32 | 254,298 | 274,675 | 88,088 | 93,192 |
Finance income for: | |||||
Financial assets and liabilities held for trading | 114,275 | 23,084 | 114,839 | (62,552) | |
Non-trading financial assets mandatorily measured at fair value through profit or loss | (27,215) | (12,670) | (20,874) | (12,670) | |
Financial assets and liabilities designated at fair value through profit or loss | - | - | - | - | |
Income arising from derecognition of financial assets and liabilities measured at amortized cost and | |||||
financial assets measured at fair value through other comprehensive income | (7,481) | 3,523 | (7,618) | 3,523 | |
Foreign currency changes, inflation-indexation, and hedge accounting | (31,748) | (79,656) | (103,336) | 51,187 | |
Reclassification of financial assets due to change in business model | - | - | - | - | |
Other finance income | - | - | - | - | |
Net finance income (expense) | 33 | 47,831 | (65,719) | (16,989) | (20,512) |
Income from investments in companies | 34 | 10,838 | 4,698 | 3,816 | 1,254 |
Income from non-current assets and disposal groups held for sale not admissible as discontinued | |||||
operations | 35 | 7,799 | 6,891 | 2,138 | 715 |
Other operating income | 36 | 40,152 | 40,670 | 24,548 | 13,982 |
TOTAL OPERATING INCOME | 1,827,872 | 1,983,629 | 576,433 | 666,480 | |
Expenses for employee benefit obligations | 37 | (482,430) | (472,102) | (164,586) | (168,812) |
Administrative expenses | 38 | (337,607) | (289,610) | (117,949) | (103,250) |
Depreciation and amortization | 39 | (83,820) | (84,727) | (28,371) | (28,955) |
Impairment of non-financial assets | 40 | (7) | - | - | - |
Other operating expenses | 36 | 13,803 | (43,306) | 18,323 | (27,203) |
TOTAL OPERATING EXPENSES | (890,061) | (889,745) | (292,583) | (328,220) | |
OPERATING INCOME BEFORE CREDIT LOSSES | 937,811 | 1,093,884 | 283,850 | 338,260 | |
Credit loss expense for: | |||||
Provisions for credit loss of loans and advances to banks and loans and receivables from customers | (358,711) | (331,480) | (78,206) | (104,587) | |
Special provisions for credit loss | (12,082) | (61,465) | (19,272) | (6,168) | |
Recovery of written-off credits | 57,208 | 61,271 | 19,848 | 19,172 | |
Impairment due to credit loss of other financial assets at amortized cost and financial assets at fair value | |||||
through other comprehensive income | (12,559) | (15,080) | (6,842) | 3,109 | |
Credit loss expense | 41 | (326,144) | (346,754) | (84,472) | (88,474) |
OPERATING PROFIT | 611,667 | 747,130 | 199,378 | 249,786 | |
Profit from continuing operations before tax | 611,667 | 747,130 | 199,378 | 249,786 | |
Income tax | 18 | (109,645) | (116,743) | (70,201) | (60,327) |
Profit from continuing operations after tax | 502,022 | 630,387 | 129,177 | 189,459 | |
Profit from discontinued operations before tax | - | - | - | - | |
Discontinued operations tax | 42 | - | - | - | - |
Profit from discontinued operations after tax | - | - | - | - | |
CONSOLIDATED PROFIT FOR THE PERIOD | 502,022 | 630,387 | 129,177 | 189,459 | |
Attributable to: | |||||
Owners of the Bank | 501,921 | 630,266 | 129,146 | 189,414 | |
Non-controlling interests | 101 | 121 | 31 | 45 | |
Earnings per share: | |||||
Basic earnings | 3,302 | 3,733 | 1,094 | 905 | |
Diluted earnings | 3,302 | 3,733 | 1,094 | 905 |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements.
Interim Consolidated Financial Statements September 2023 / 3
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
For the nine and three-month periods ended September 30, 2023 and 2022 (In millions of Chilean pesos - MCh$)
CONSOLIDATED PROFIT FOR THE PERIOD
Other comprehensive income from the period:
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
Remeasurements of defined benefit liability (asset) and actuarial results for other employee benefit plans
Changes in fair value of equity instruments at fair value through other comprehensive income
Movements in fair value of financial liabilities at fair value through profit or loss attributable to changes in the credit risk of the financial liability
Other
OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TO INCOME BEFORE TAX
Income tax on other comprehensive income that will not be reclassified to profit or loss
TOTAL OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TOPROFIT OR LOSS
AFTER TAX
ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS
Changes in fair value of financial assets at fair value through other comprehensive income Translation differences for foreign operations
Hedge of net investments in foreign operations Cash flow hedges
Undesignated items of accounting hedge instruments Other
OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS BEFORE TAX
Income tax on other comprehensive income that may be reclassified to profit or loss
TOTAL OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS AFTER
TAX
TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD
COMPREHENSIVE INCOME FOR THE CONSOLIDATED PERIOD
Attributable to:
Owners of the Bank
Non-controlling interests
For the nine months | For the three months ended | ||||
ended September 30 | September 30 | ||||
2023 | 2022 | 2023 | 2022 | ||
Note | MCh$ | MCh$ | MCh$ | MCh$ | |
502,022 | 630,387 | 129,177 | 189,459 |
28 | - | - | - | - | |||
28 | 309 | (71) | (15) | (16) | |||
- | - | - | - | ||||
- | - | - | - | ||||
309 | (71) | (15) | (16) | ||||
- | - | - | - | ||||
309 | (71) | (15) | (16) | ||||
28 | |||||||
28 | (58,611) | (518,242) | (118,860) | (276,845) | |||
28 | 107,817 | 292,077 | 207,100 | 144,886 | |||
- | - | - | - | ||||
28 | 165,184 | 9,339 | 128,091 | 235,865 | |||
- | - | - | - | ||||
- | - | - | - | ||||
214,390 | (216,826) | 216,331 | 103,906 | ||||
28 | |||||||
28 | (42,859) | 165,383 | (23,728) | (6,063) | |||
171,531 | (51,443) | 192,603 | 97,843 | ||||
28 | |||||||
171,840 | (51,514) | 192,588 | 97,827 | ||||
673,862 | 578,873 | 321,765 | 287,286 | ||||
673,761 | 578,752 | 321,734 | 287,241 | ||||
101 | 121 | 31 | 45 |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 4
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the periods ended September 30, 2023 and December 31, 2022
(In millions of Chilean pesos - MCh$)
Equity attributable to owners | |||||||||||||||||
Re-measurement of net | Net changes in fair value of | Accumulated other comprehensive income | Retained earnings | ||||||||||||||
Changes in fair value of | Translation | Profit for | Provision for | Non- | |||||||||||||
equity instruments at fair | Retained | Total | |||||||||||||||
Share capital | Reserves | defined benefit | financial assets at fair value | differences for | Cash flow hedges | Income tax | Total | the year | minimum | Total | controlling | ||||||
value through other | earnings | equity | |||||||||||||||
liabilities (assets) | through other comprehensive | foreign operations | dividends | interests | |||||||||||||
comprehensive income | |||||||||||||||||
income | |||||||||||||||||
MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |||
Closing balances as of December 31, 2021 | 3,862,386 | (26,806) | - | - | (242,905) | 405,367 | 177,037 | (36,959) | 302,540 | - | 520,391 | (156,117) | 4,502,394 | 1,400 | 4,503,794 | ||
Effects of changes in accounting compendium | 3,706 | (13,285) | (13,285) | - | - | - | (9,579) | - | (9,579) | ||||||||
As of January 1, 2022 | 3,862,386 | (23,100) | - | - | (256,190) | 405,367 | 177,037 | (36,959) | 289,255 | - | 520,391 | (156,117) | 4,492,815 | 1,400 | 4,494,215 | ||
Transfer to retained earnings | - | - | - | - | - | - | - | - | - | 520,391 | (520,391) | - | - | - | - | ||
Other equity movements | - | (3,540) | - | - | - | - | - | - | - | - | - | - | (3,540) | (279) | (3,819) | ||
Common shares issued with release of capitalization payment | 362,946 | - | - | - | - | - | - | - | - | (362,946) | - | - | - | - | - | ||
Additions to paid-in capital by capitalization without issue | |||||||||||||||||
of common shares released from paymen | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||
Payment of ordinary share dividends | - | - | - | - | - | - | - | - | - | (157,445) | - | 156,117 | (1,328) | - | (1,328) | ||
Provision for payment of ordinary share dividends | - | - | - | - | - | - | - | - | - | - | - | (246,247) | (246,247) | - | (246,247) | ||
Subtotal of transactions with the owners in the period | 4,225,332 | (26,640) | - | - | (256,190) | 405,367 | 177,037 | (36,959) | 289,255 | - | - | (246,247) | 4,241,700 | 1,121 | 4,242,821 | ||
Profit for the year | - | - | - | - | - | - | - | - | - | - | 820,822 | - | 820,822 | 202 | 821,024 | ||
Other comprehensive income | - | - | (132) | (50) | (384,996) | (19,997) | (36,129) | 154,260 | (287,044) | - | - | - | (287,044) | - | (287,044) | ||
Subtotal comprehensive income | - | - | (132) | (50) | (384,996) | (19,997) | (36,129) | 154,260 | (287,044) | - | 820,822 | - | 533,778 | 202 | 533,980 | ||
Closing balance as of December 31, 2022 | 4,225,332 | (26,640) | (132) | (50) | (641,186) | 385,370 | 140,908 | 117,301 | 2,211 | - | 820,822 | (246,247) | 4,775,478 | 1,323 | 4,776,801 | ||
Transfer to retained earnings | - | - | - | - | - | - | - | - | - | 820,822 | (820,822) | - | - | - | - | ||
Other equity movements | - | - | - | - | - | - | - | - | - | - | - | - | - | 28 | 28 | ||
Common shares subscribed and fully paid | 2,152 | - | - | - | - | - | - | - | - | - | - | - | 2,152 | - | 2,152 | ||
Common shares issued with release of capitalization payment | 540,926 | 26,640 | - | - | - | - | - | - | - | (567,566) | - | - | - | - | - | ||
Additions to share capital for capitalization without issuance of | - | - | - | ||||||||||||||
fully paid ordinary shares | - | - | - | - | - | - | - | - | - | - | - | - | |||||
Payment of ordinary share dividends | - | - | - | - | - | - | - | - | - | (253,256) | - | 246,247 | (7,009) | - | (7,009) | ||
Provision for payment of ordinary share dividends | - | - | - | - | - | - | - | - | - | - | - | (150,576) | (150,576) | - | (150,576) | ||
Subtotal of transactions with the owners in the period | 4,768,410 | - | (132) | (50) | (641,186) | 385,370 | 140,908 | 117,301 | 2,211 | - | - | (150,576) | 4,620,045 | 1,351 | 4,621,396 | ||
Profit for the period | - | - | - | - | - | - | - | - | - | - | 501,921 | - | 501,921 | 101 | 502,022 | ||
Other comprehensive income | - | - | - | 309 | (58,611) | 107,817 | 165,184 | (42,859) | 171,840 | - | - | - | 171,840 | - | 171,840 | ||
Subtotal comprehensive income | - | - | - | 309 | (58,611) | 107,817 | 165,184 | (42,859) | 171,840 | - | 501,921 | - | 673,761 | 101 | 673,862 | ||
Closing balance as of September 30, 2023 | 4,768,410 | - | (132) | 259 | (699,797) | 493,187 | 306,092 | 74,442 | 174,051 | - | 501,921 | (150,576) | 5,293,806 | 1,452 | 5,295,258 |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 5
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the periods ended September 30, 2023 and 2022
(In millions of Chilean pesos - MCh$)
September 30,
2023 | 2022 | ||
Note | MCh$ | MCh$ | |
A) CASH FLOWS FROM OPERATING ACTIVITIES | |||
CONSOLIDATED PROFIT BEFORE TAX FOR THE PERIOD ENDED | 611,667 | 747,130 | |
Debit (credit) to profit or loss that do not represent movements in cash flows | |||
Depreciation and amortization | 39 | 83,820 | 84,727 |
Impairment of non-financial assets | 40 | (7) | - |
Provisions for credit loss | 370,793 | 392,945 | |
Adjustment to market value of financial instruments | (23,936) | 27,396 | |
Net loss on investment in companies | 34 | (10,838) | (4,698) |
Net loss on sale of assets received in payment | 35 | (2,036) | 2 |
Net loss on sale of property and equipment | 35 | (518) | (241) |
Net gain on sale of property and equipment | 35 | 1 | 253 |
Write-off of assets received in payment | 35 | 1,369 | 629 |
Net interest income | 30 | (1,155,160) | (1,152,236) |
Net inflation-indexation income | 31 | (311,794) | (570,178) |
Net fee income | 32 | (254,298) | (274,675) |
Other debit (credit) that do not represent movements in cash flows | 254,799 | 82,417 | |
Changes due to increases/decreases in operating assets and liabilities: | |||
(Increase) decrease in loans and advances to banks | 34,260 | (282,125) | |
(Increase) decrease in loans and receivables from customers | (2,957,759) | (5,781,122) | |
(Increase) decrease in financial investments | (942,636) | (867,592) | |
Increase (decrease) in other on-demand liabilities | (349,780) | (440,922) | |
Increase (decrease) in repurchase agreements and securities lending | 347,648 | 221,414 | |
Increase (decrease) in deposits and other term deposits | 2,399,830 | 5,068,415 | |
Increase (decrease) in bank borrowings | (91,196) | (124,679) | |
Increase (decrease) in other financial liabilities | (201,210) | 1,447,238 | |
Loans from the Central Bank of Chile (long-term) | 47,878 | - | |
Repayment of loans from the Central Bank of Chile (long term) | - | (74,965) | |
Long-term foreign loans | 342,712 | - | |
Repayment of long-term foreign loans | - | (140,716) | |
Income tax | (97,982) | (156,763) | |
Interest and inflation-indexation received | 3,672,653 | 3,107,466 | |
Interest and inflation-indexation paid | (2,205,699) | (1,385,052) | |
Fees received | 32 | 379,854 | 381,894 |
Fees paid | 32 | (125,555) | (107,219) |
Total net cash (used in) from operating activities | (183,120) | 198,743 | |
B) CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of investments in companies | 14 | - | - |
Sale of investments in companies | 14 | - | 1,319 |
Dividends received from investments in companies | 14 | 2,745 | 99 |
Acquisition of property and equipment | 16 | (13,747) | (12,411) |
Sale of property and equipment | 333 | 1,700 | |
Acquisition of intangible assets | 15 | (63,937) | (44,847) |
Sale of intangible assets | - | - | |
Sale of goods received in payment or awarded | 8,037 | 5,669 | |
Net (increase) in other assets and liabilities | (398,809) | (871,781) | |
Total net cash (used in) investing activities | (465,378) | (920,252) | |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 6
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the periods ended September 30, 2023 and 2022
(In millions of Chilean pesos - MCh$)
September 30,
2023 | 2022 | ||
Note | MCh$ | MCh$ | |
C) CASH FLOWS FROM FINANCING ACTIVITIES | |||
Attributable to interest of the owners: | |||
Issue of letters of credit | - | - | |
Redemption and payment of interest / principal of letters of credit | (988) | (2,756) | |
Issuance of current bonds | 497,307 | 1,080,579 | |
Redemption and payment of interest / principal of current bonds | (821,909) | (1,185,755) | |
Issue of mortgage bonds | - | - | |
Redemption and payment of interest / principal of mortgage bonds | - | - | |
Payment of interest / principal of lease liabilities | (2,080) | (2,194) | |
Issue of subordinated bonds | - | - | |
Payment of interest and principal of subordinated bonds | (47,661) | (39,579) | |
Issue of bonds with no fixed maturity date | - | - | |
Redemption and payment of interest on bonds with no fixed maturity date | - | - | |
Issue of preferred shares | - | - | |
Redemption of preference shares and payment of preference share dividends | - | - | |
Increase in share capital for the issuance of ordinary shares | 2,152 | - | |
Payment of ordinary shares dividends | (253,256) | (157,445) | |
Attributable to non-controlling interests: | |||
Dividend payment and/or withdrawals of share capital related to subsidiaries corresponding to | - | ||
non-controlling interest | - | ||
Total net cash used in financing activities | (626,435) | (307,150) | |
NET DECREASE IN CASH AND CASH EQUIVALENTS FOR THE PERIOD ENDED | (1,126,135) | (751,774) | |
EFFECT OF EXCHANGE RATE FLUCTUATIONS | (148,798) | (276,885) | |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 7,309,538 | 6,820,120 | |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 7 | 6,034,605 | 5,791,461 |
The accompanying notes Nos. 1 to 49 are an integral part of these Interim Consolidated Financial Statements
Interim Consolidated Financial Statements September 2023 / 7
BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and December 31, 2022 and for the nine and three-month periods ended September 30, 2023 and 2022
NOTE 1 - REPORTING ENTITY
- The Bank
Banco de Crédito e Inversiones (hereinafter "BCI" or "the Bank") is a company incorporated in Chile, regulated by the Financial Market Commission, hereinafter the "CMF", in accordance with the amendments to the General Banking Law under Law No. 21.130, which defines this commission as regulatory entity from June 1, 2019 (Official Gazette Publication No. 42.343 of Thursday, May 2, 2019). Its registered office is at Avenida El Golf 125, in the municipality of Las Condes. The Interim Consolidated Financial Statements as of September 30, 2023 and December 31, 2022 and for the nine and three months ended as of September 30, 2023 and 2022, include the Bank and its subsidiaries detailed in the following paragraph, as well as the Miami Branch. The Bank is involved in all the businesses and operations that the General Banking Law allows it, as personal, corporate, and real estate banking, large and medium-sized companies banking, private banking, and asset management services.
NOTE 2 - BASIS OF ACCOUNTING
- Basis of preparation of the interim financial statements
These Interim Consolidated Financial Statements have been prepared in accordance with the Compendium of Accounting Standards for Banks (CNCB) and instructions issued by the Financial Market Commission (hereinafter "CMF"), a regulatory body that in accordance with Law No. 21.000 that " Creates the Financial Market Commission", provides in number 6 of article 5 that the Financial Market Commission may "set the standards for the preparation and presentation of the annual reports, balance sheets, statements of financial position and other financial statements of the regulated entities and determine the principles to which they must keep their accounting and in everything that is not treated by it if it does not contradict their instructions, they must adhere to the generally accepted accounting policies, which correspond to the technical standards issued by Colegio de Contadores de Chile AG, matching the International Financial Reporting Standards (IFRS) agreed upon by the International Accounting Standards Board (IASB). In case of discrepancies between the International Financial Reporting Standards (IFRS) and the accounting policies issued by the CMF in its Compendium of Accounting Standards for Banks and Instructions, the latter will prevail.
The notes to the Interim Consolidated Financial Statements contain additional information to that presented in the Interim Consolidated Statements of Financial Position, the Interim Consolidated Statements of Income, the Interim Consolidated Statements of Other Comprehensive Income, the Interim Consolidated Statements of Changes in Equity and the Interim Consolidated Statements of Cash Flows.
- Controlled entities (subsidiaries)
The Interim Consolidated Financial Statements as of September 30, 2023 and December 31, 2022 include the financial statements of the Bank and the controlled companies (subsidiaries). Control is obtained when the Bank is exposed, or has the right, to variable returns from its involvement with the investee and has the ability to influence those returns through its power over the investee.
Specifically, the Bank controls an investee only if it meets the following elements:
- Power over the investee (that is, it has rights that give it the current ability to direct the relevant activities of the investee);
- exposure, or right, to variable returns from its involvement with the investee; and
III. ability to use its power over the investee to influence the amount of the investor's returns.
When the Bank has less than most of the voting rights over an investee; but such voting rights are sufficient to have the practical ability to direct the relevant activities unilaterally, then it will be concluded that the Bank has control. The Bank considers all relevant factors and circumstances in assessing whether the voting rights are sufficient to obtain control, these include:
●
●
●
●
The size of the Bank's voting rights relative to the size and dispersion of holdings of the other vote holders. The potential voting rights held by the investor, other vote holders or other parties.
Rights arising from other contractual arrangements.
Any additional facts and circumstances that indicate the investor has, or does not have, the current ability to direct the relevant activities at the time those decisions need to be made, including voting patterns at previous shareholders' meetings.
The Bank reassesses whether it has control over an investee when the facts or circumstances indicate that there are changes in one or more of the control elements listed above.
Loss of control generates de-recognition of assets and liabilities of the former subsidiary in the Interim Consolidated Statements of Financial Position and the recognition of the loss or gain associated with the loss of control.
The Interim Consolidated Financial Statements consider the separate (stand-alone) financial statements of the Bank and of the companies included in the consolidation and include the necessary adjustments and reclassifications to standardize the accounting policies and valuation criteria applied by the Bank, together with the elimination of all balances and transactions between the consolidated companies.
Additionally, the participation of third parties in the equity of the consolidated Bank is presented as "non-controlling interest" in the Interim Consolidated Statements of Financial Position. Their share of profits for the period is presented as "Profit attributable to non-controlling interest" in the Interim Consolidated Statements of Income for the period.
The following table shows the composition of the entities over which the Bank can exercise control, therefore, they are part of the scope of consolidation:
Interim Consolidated Financial Statements September 2023 / 8
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Bci - Banco de Credito e Inversiones SA published this content on 29 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2023 14:19:34 UTC.