CORPORATE PRESENTATION - corporativo.bancoestado.cl · temuco copiap ó valdivia punta ... and caja vecina long history as a cornerstone of chile’s financial sector and engine of

FINANCIAL RESULTS AS OF MARCH 2018

CORPORATE PRESENTATIONFINANCIAL RESULTS AS OF MARCH 2018

CORPORATE PRESENTATION

FINANCIAL RESULTS AS OF JUNE 2018

AUGUST 2018

ALL FIGURES EXPRESSED IN USD, OBSERVED EXCHANGE RATE JUN-18: 637.09

2

This material has been prepared by Banco del Estado de Chile (the “Bank”) and it does not constitute an offering memorandum in

whole or in part.

This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any

securities or related financial instruments. Likewise, it does not give and should not be treated as giving investment advice. No

representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the

information contained herein. Any opinions expressed in this material are subject to change without notice and the Bank and the

initial purchasers are under no obligation to update or keep current the information contained herein. In addition, institutions

mentioned in this material, their affiliates, agents, directors (or members of their directive board), partners and employees may make

purchases and/or sales as principal or may act as market makers in connection with securities issued by the Bank and provide

investment banking, financing or other services to the Bank. The Bank, the initial purchasers and their respective affiliates, agents,

directors (or members of their directive board), partners and employees accept no liability whatsoever for any loss or damage of any

kind arising out of the use of all or any part of this material.

This presentation may contain statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933

and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve inherent risks and uncertainties. We

caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations,

estimates and intentions expressed in these forward-looking statements, and may adversely affect the estimates and assumptions

on which these forward-looking statements are based, many of which are beyond our control. You are cautioned not to place undue

reliance on these forward-looking statements. Comparisons of results for current and any prior periods are not intended to express

any future trends or indications of future performance and should only be viewed as historical data.

Furthermore, you should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the

extent that you deem it necessary, and make your own investment, hedging and trading decision (including decisions regarding the

suitability of any transaction) based upon your own judgment and advice from such advisers as you deem necessary and not upon

any view expressed in this material.

DISCLAIMER

3

I. CHILE MACROECONOMIC FUNDAMENTALS

II. THE CHILEAN BANKING SYSTEM

III. OVERVIEW OF BANCO ESTADO & FINANCIAL HIGHLIGHTS

IV. FINAL REMARKS

AGENDA

FISCAL BALANCE

(% OF GDP)

Source: Ministry of Finance – Dipres and Cochilco 4

REAL GDP GROWTH AND DOMESTIC DEMAND

(% CHANGE YOY)

EMPLOYMENT TREND

Source: National Institute of Statistics.

Source: Central Bank of Chile

Confidence Business Index as of Jun-2018

INCREASING ECONOMIC PACE – STEADY PERFORMANCE OF

EMPLOYMENT LEVELSINFLATION

(CPI VAR. END DECEMBER)


CPI 2018F2.4%

MPR June-182.50%

IG

Source: Bloomberg

BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA

SOVEREIGN RATING (S&P) AND GENERAL GOVERNMENT

GROSS DEBT (% OF GDP)* AS OF 13 OF AUGUST 2018

Source: Bloomberg. *IMF Forecast Dec-18

Source: Central Bank of Chile and Ministry of Finance

CHILE’S INTERNATIONAL RESERVES AND

SOVEREIGN FUNDS

5

Source: Ministry of Finance

GOVERNMENT GROSS AND NET DEBT

(% OF GDP)

BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA

CHILE HAS A STRONG FISCAL POLICY

SOVEREIGN CDS 5Y AND RATING (S&P )

AS OF 13 AUGUST 2018

GCI INDEX

20° GLOBAL INDEX OF

ECONOMIC FREEDOM (2018)• 1° IN LATAM

6

DEVELOPING INTERNATIONAL

MARKET

-0.9%


REPUBLIC OF CHILE - OPEN ECONOMY TO THE WORLD

33° GLOBAL COMPETITIVENESS

INDEX RANKING (2017 - 2018)• 17°FINANCIAL MARKET

DEVELOPMENT

• 36° MACROECONOMIC

ENVIROMENT

26 FREE TRADE AGREEMENTS

WHICH COVER 85% OF GLOBAL

GDP AND 65% OF THE WORLD

POPULATION

• AGREEMENTS WITH 32

COUNTRIES TO AVOID DOUBLE

TAXATION

EXPORTS BY DESTINATION (FOB)

AS OF JUNE 2018

EXPORTS BY PRODUCTS (FOB)

AS OF JUNE 2018

CURRENT ACCOUNT AND TRADE BALANCE

(% OF GDP)

TOTAL FDI INFLOWS

(USD MILLIONS)

OECD MEMBER SINCE 2010

OCDE

INDEX OF THE ECONOMICS

FREEDOM

OPEN ECONOMY

7




IV. FINAL REMARKS

AGENDA

ASSETS IN THE CHILEAN FINANCIAL SYSTEM (USD BILLIONS)

AS OF JUNE 2018

8

Source: Superintendence of Banks.Source: Superintendence of Banks; Superintendence of Pension; Mutual Funds of Chile & CMF

BANKING SYSTEM NET LOANS AND DEPOSITS

(USD BILLIONS)

BANKING SYSTEM ROE AND ROA (%)

Source: Superintendence of Banks.

BANKING SYSTEM BIS RATIO

Source: Superintendence of Banks - Latest available

CHILEAN FINANCIAL SYSTEM OVERVIEW

TOTAL LOAN MARKET SHARE COMPARISONS

9

TIME & SAVINGS DEPOSITS MARKET SHARE

AS OF JUNE 2018

MORTGAGE LOANS MARKET SHARE

AS OF JUNE 2018

Source: Superintendence of Banks

*Excludes Corpbanca Colombia and City National Bank Miami (BCI)

REAL LOANS GROWTH

*System excludes BancoEstado

PLAYING A RELEVANT ROLE IN THE FINANCIAL SYSTEM


10




IV. FINAL REMARKS

AGENDA

HIGHEST RATED BANK IN LATIN AMERICA AND

NAMED AS THE SAFEST BANK IN LATAM BY GLOBAL

FINANCE IN THE LAST SEVEN YEARS

100% GOVERNMENT-OWNED ENTITY SUPPORTED

BY THE REPUBLIC OF CHILE SINCE INCEPTION,

PLAYING A STRATEGIC ROLE IN CHILE AND ONE OF

THE OLDEST BANKS OF THIS COUNTRY

CHILEAN MARKET LEADER IN DEPOSITS,

SAVINGS, MORTGAGES AND MICRO-LENDING

11

UNIVERSAL BANK AND THE MOST RELEVANT

ACTOR IN FINANCIAL INCLUSION IN CHILE

INVESTOR HIGHLIGHTS

LARGEST COMMERCIAL BANK IN NUMBER OF

TRANSACTIONS, ASSETS AND 3RD IN TERM OF LOANSOPTIMAL LIQUIDITY LEVELS COUPLED WITH

A WELL-DIVERSIFIED LOAN PORTFOLIO

STABLE

31.38%

LIQUID

ASSETS

NPLs

3.28%

STABLE

BIS RATIO

STABLE

10.76%

NPLs

COVERAGE*

STABLE

153.45%

ROE*

19.16%

BANCOESTADO AT A GLANCE

4

HIGHLIGHTS: SECOND QUARTER 2018

INTERNATIONAL RATINGS

AT PAR WITH THE REPUBLIC OF CHILE STRATEGIC MAP

LONG-TERM SHORT-TERM OUTLOOK

A+

A1

A

A-1

P-1

F1

STABLE

STABLE

STABLE

FINANCIAL

INCLUSIÓN

2.0

SAFETY AND

RELIABLE

BANK

MOTIVATED

AND DINAMIC

HUMAN TEAM

PROMOTE

NATIONAL

SAVINGS

ENHANCE

ECONOMIC

DEVELOPMENT

FOR SMEs

DEPOSITS

-0.06%(YoY)

USD $38.53 bn

1st position

TOTAL

ASSETS

+3.02%(YoY)

USD $59.23 bn

1st position*

NET INCOME*

*Before taxes

USD $251 mm

*Includes additional provisions

+13.21%(YoY)

4th position4th position

*Excludes Corpbanca Colombia and City

National Bank Miami (BCI)

Valparaíso

Rancagua

Santiago

Concepción

Puerto Montt

La SerenaCoquimbo

Castro

Coihaique

Antofagasta

Temuco

Copiapó

Valdivia

Punta Arenas

Talca

Arica

Iquique

ACTIVE CUENTAS RUTS

(THOUSAND AND % USAGE)

CAJAVECINA POINT OF SALE

UNITS (TOTAL UNITS PER YEAR) MICROFINANCE

Source: BancoEstado

SOCIAL FOOTPRINT - A BIG STEP IN FINANCIAL INCLUSION

Source: BancoEstado Source: BancoEstado

Source: Superintendence of Banks, BancoEstado and Bloomberg - Latest available

SAVINGS

MILLIONS OF CLIENTS

INTERNET

MILLIONS OF CLIENTS

MOBILE

NUMBER OF TRANSACCTIONS (IN MILLIONS)

INSURANCE

MILLIONS OF CLIENTS

BRANCHES & SERVIESTADO ATM

14

Sources: BancoEstado.

Most Trusted Bank in the Year

LATAM

2014

Safest Bank

in Latam

2011 a 2017

10# Safest Emerging

Markets Banks

2015

15# Great Place to Work

Chile

2016

First Financial Institution

Brand Value Chile

2009 to 2016

COMBINATION OF BE AND

REDBANC ATM NETWORKS

METLIFE INC. ACQUIRES 49,9% STAKE IN

BE’S INSURANCE BROKERAGE

OPENING OF NEW

YORK BRANCHE

BNP PARIBAS ACQUIRES 49,9% STAKE IN

BE’S MUTUAL FUNDS ARM

STRENGTHNING OF BANCARIZATION

THROUGH CAJAVECINA

FIRST CHILEAN BANK TO

ISSUE A SRI BOND

LAUNCH OF CUENTA RUT

AND CAJA VECINA

LONG HISTORY AS A CORNERSTONE OF CHILE’S FINANCIAL

SECTOR AND ENGINE OF ECONOMIC DEVELOPMENT

CAPITALIZATION

USD 500 MMCAPITALIZATION

USD 200 MMCAPITALIZATION

USD 200 MM

LAUNCH OF COMPRAAQUI

NETWORK

15

ASSETS IN USD BILLION (DEC-17): 59.5


BALANCE SHEET STRUCTURE AS OF JUNE 2018 ASSET DISTRIBUTION AS OF JUNE 2018

15

ASSETS AS OF JUNE 2018 COMPOSITION OF LIQUID ASSETS AS OF JUNE 2018

Source: Superintendence of Banks.Source: Superintendence of Banks.


STRONG BALANCE SHEET, MANTAINS OPTIMAL LEVEL OF LIQUIDITY

LOAN PORTFOLIO BY TYPE

AS OF JUNE 2018

COMMERCIAL LOAN PORTFOLIO BY ECONOMIC ACTIVITY

AS OF JUNE 2018

INTERESTS INCOME BY SEGMENT AS OF JUNE 2018 FEES BREAKDOWN AS OF JUNE 2018


16


Source: Superintendence of Banks and BancoEstado Source: BancoEstado

LOAN PORTFOLIO AND INCOME OVERVIEW

FUNDING STRUCTURE AS OF JUNE 2018

17

BIS RATIO AND TIER I (%) – BANCOESTADO EFFECTIVE EQUITY (USD MILLIONS)

*Minimum Regulatory Requirement Ratio is 8%.Source: Superintendence of Banks and BancoEstado

Source: Superintendence of Banks and BancoEstado

Source: Superintendence of Banks – Latest available

FUNDING AND CAPITAL STRUCTURE

23.5% OF

MORTGAGE

PORTFOLIO

BENEFITS FROM

GOVERMENT

GUARANTEE

Source: BancoEstado and Superintendence of Banks.

HIGHLIGHTS

MORTGAGE LOANS, STOCK BY AMOUNT AND VOLUME & MARKET SHARE

MORTGAGE PORTFOLIO HIGHLIGHTS

• BANCOESTADO IS THE LARGEST MORTGAGE LENDER IN CHILE BY NUMBER OF TRANSACTIONS (51% AS OF MAY-18)

• THE GOVERNMENT ASSURES UP TO 100% OF NON-PERFORMING MORTGAGE LESS RECOVERY VALUE.

• THE MAJORITY OF THE TOTAL MORTGAGE PORTFOLIO IS:

RESIDENTIAL LOANS.

DENOMINATED IN UF (INFLATION-LINKED).

THE BANK FINANCES THE 80% OF THE LOAN AND THE CLIENT FINANCES THE REMAINING 20%.

FIXED RATE.

MAX 30-YEARS OF MATURITY

•THE AVERAGE STOCK FOR MORTGAGE LOANS IS ABOUT US$68,000 WITH A MATURITY OF 22 YEARS.

.

19

NON-PERFORMING LOANS / TOTAL LOANS (%) NON-PERFORMING LOANS / TOTAL COMMERCIAL LOANS (%)

NON-PERFORMING / TOTAL CONSUMER LOANS (%)

19

NON-PERFORMING LOANS / TOTAL MORTGAGES LOANS (%)

Source: Superintendence of Banks. Source: Superintendence of Banks.

LOAN PORTFOLIO OVERVIEW

Source: Superintendence of Banks. Source: Superintendence of Banks.

ADDITIONAL PROVISIONS / TOTAL LOANS (USD MILLIONS)

AS OF JUNE 2018ALLOWANCES FOR LOAN LOSSES / TOTAL LOANS (%)

20

Source: BancoEstado

COVERAGE NPLS (%) NET PROVISIONS FOR LOAN LOSSES

**Includes additional Provisions

Source: Superintendence of Banks.Source: Superintendence of Banks.

LOAN PORTFOLIO OVERVIEW (CONT´D)

656

187

71

41

512

502 730

1,239

Source: BancoEstado.

TOTAL ASSETS (USD MILLIONS) NET INTEREST MARGIN

TOTAL OPERATING INCOME (USD MILLIONS) INCOME BEFORE TAXES (USD MILLIONS)


Source: BancoEstado.

21


CONSISTENT POSITIVE FINANCIAL PERFORMANCE


EFFICIENCY RATIO RETURN ON EQUITY (BEFORE TAXES)

RETURN ON AVERAGE ASSETS (BEFORE TAXES) LOANS TO DEPOSITS RATIO


22



STRONG FINANCIAL RATIOS

COMMITTEES FACILITATE SOUND MANAGEMENT

ASSET AND LIABILITIES COMMITTE

23

CORPORATE STRUCTURE

CORPORATE GOVERNANCE

BANCO ESTADO IS A

STATE-OWNED FINANCIAL

INSTITUTION, OPERATING

AS AN AUTONOMOUS

ENTITY GOVERNED BY

ORGANIC LAW.

NINE SENIOR

MANAGEMENT

COMMITTEE.

WE ARE SUPERVISED

BY THE SUPERINTENDENCY

OF BANKS AND THE

REGULATIONS OF THE

CENTRAL BANK.

OUR BOARD OVERSEES

THE BANK’S POLICIES

AND OPERATIONS AND IS IN

CHARGE OF ITS OVERSIGHT

(DIRECCIÓN

SUPERIOR).

ORGANIC LAW ENTITLES

THE PRESIDENT OF CHILE

TO APPOINT 6 OF THE 7

MEMBERS OF THE BOARD OF

DIRECTORS AND ALL 3

VOTING MEMBERS OF THE

EXECUTIVE COMMITTEE

(GENERAL COUNSEL IS A

NON-VOTING POSITION).

NO MEMBER OF THE

BOARD OF DIRECTORS OR

THE EXECUTIVE COMMITTEE

MAY PARTICIPATE OR VOTE IN

CREDIT TRANSACTIONS,

INVESTMENTS OR ANY OTHER

BUSINESS SOMEHOW RELATED

IN PARTICIPATION,

DEPENDENCE OR

INTERFERENCE.

THE BANK IS

PROHIBITED BY THE

CHILEAN CONSTITUTION

FROM DIRECT LENDING

TO THE CHILEAN

GOVERNMENT OR ANY

STATE-OWNED

ENTERPRISES.BANCOESTADO HAS BEEN

RECOGNIZED AS ONE OF THE

MOST TRANSPARENT PUBLIC

ENTITIES IN CHILE, RECEIVING

A TOTAL SCORE OF 100%

ACCORDING TO CORPORATE

TRANSPARENCY INDEX (CTI)

ACCORDING TO

ORGANIC LAW, THE

POWERS OF THE

EXECUTIVE COMMITTEE

EXTEND TO ALL MATTERS

CONCERNING

MANAGEMENT &

OPERATION OF THE

BANK

BOARD OF DIRECTORS

CHAIRMAN

VICE-CHAIRMAN

BOARD MEMBERS (4)

LABOR DIRECTOR

LABOR ALTERNATE

DIRECTOR

EXECUTIVE COMMITTEE

CHAIRMAN

VICE-CHAIRMAN

CHIEF EXECUTIVE

OFFICER

GENERAL COUNSEL*

*NON VOTING

AUDIT COMMITTEE

CHAIRMAN

MEMBERS (3)

GENERAL

COUNSEL

CEO

CONTROLLER

SENIOR MANAGER

KE

Y O

PE

RA

TIO

NA

L C

OM

MIT

TE

ES

STRATEGIC QUALITY AND TRANSPARENCY COMMITTE

PROCESS AND TECHNOLOGY COMMITTE

COMMERCIAL COMMITTE

AUDIT COMMITTE

RISK COMMITTE

STRATEGY COMMITTE

COMPLIANCE COMMITTE

HUMAN RESOURCES COMMITTE

SUSTAINABILITY COMMITTE

24




IV. FINAL REMARKS

AGENDA

25

KEY INVESTMENT CONSIDERATIONS

CHILE IS A SUCCESSFUL

AND DYNAMIC OPEN

ECONOMY, WITH STRONG

ECONOMIC FUNDAMENTALS

AND POSITIVE OUTLOOK,

HOLDING THE BEST RATING IN

LATIN AMERICA (A1/ A+/ A) AND

AMPLE ACCESS TO THE

GLOBAL CAPITAL

MARKETS.

BANCOESTADO IS

FULLY OWNED BY THE

REPUBLIC OF CHILE,

REFLECTING STRONG SUPPORT

AND SHARING THE SAME

INTERNATIONAL CREDIT

RATINGS

(HIGHEST-RATED BANK IN

THE REGION).

CHILE’S BANKING SYSTEM

IS RESILIENT, HIGHLY

COMPETITIVE AND

RANKED AMONG THE

SOUNDEST IN THE WORLD.

COMMITTED AND

HIGHLY EXPERIENCED

MANAGEMENT.

PRESENCE IN THE

|INTERNATIONAL DEBT

CAPITAL MARKETS SINCE

1994, AN ESTABLISHED MTN

PROGRAM SINCE JANUARY

2012.

BANCOESTADO HAS

DEMONSTRATED A

SUSTAINED A TRACK RECORD

OF GROWTH AND SOLID

FINANCIAL PERFORMANCE,

EVEN DURING THE RECENT

GLOBAL CRISIS.

BANCOESTADO

MAINTAINS A HIGH LEVEL OF

LIQUIDITY, AS WELL AS A

WELL-DIVERSIFIED LOAN

PORTFOLIO SUPPORTED BY

STABLE AND LOW-COST

FUNDING

SOURCES.

BANCOESTADO HAS A

WELL DEFINED GROWTH

STRATEGY, AND A BROAD

MARKET PENETRATION.

Jun-18 Jun-18 Mar-18 Jun-17 ∆%

US$ ths* Ch$ million Ch$ million Ch$ million Jun.18 / Jun.17 Jun.18 / Mar.18

ASSETS

Cash and deposits in banks 4,383,173 2,792,476 3,758,015 4,414,600 -36.7% -25.7%

Unsettled transactions 517,131 329,459 329,268 465,911 -29.3% 0.1%

Trading investments 2,952,790 1,881,193 2,272,515 2,207,187 -14.8% -17.2%

Investments under repurchase agreements 349,337 222,559 303,365 188,090 18.3% -26.6%

Financial derivative contracts 1,268,493 808,144 623,083 479,075 68.7% 29.7%

Interbank loans 919,566 585,846 593,098 774,829 -24.4% -1.2%

Loans and accounts receivable from customers 35,132,353 22,382,471 21,705,813 21,132,845 5.9% 3.1%

Available-for-sale investments 10,344,118 6,590,134 5,420,529 4,947,971 33.2% 21.6%

Held to maturity investments 40,280 25,662 25,355 30,221 -15.1% 1.2%

Investments in other companies 23,932 15,247 14,158 13,218 15.4% 7.7%

Intangibles 257,422 164,001 155,364 140,987 16.3% 5.6%

Property, plant and equipment 595,955 379,677 377,912 355,775 6.7% 0.5%

Deferred taxes 1,346,535 857,864 841,322 998,965 -14.1% 2.0%

Other assets 1,097,314 699,088 657,385 479,162 45.9% 6.3%

TOTAL ASSETS 59,232,953 37,736,722 37,080,230 36,628,836 3.0% 1.8%

LIABILITIES

Deposits and other demand liabilities 12,835,560 8,177,407 7,926,484 7,643,357 7.0% 3.2%

Unsettled transactions 404,987 258,013 286,658 381,103 -32.3% -10.0%

Investments under repurchase agreements 1,169,086 744,813 473,641 635,303 17.2% 57.3%

Time deposits and other time liabilities 25,694,199 16,369,517 16,563,168 17,043,123 -4.0% -1.2%

Financial derivative contracts 1,350,806 860,585 753,555 427,457 101.3% 14.2%

Interbank borrowings 2,253,813 1,435,882 1,429,020 1,088,990 31.9% 0.5%

Issued debt instruments 11,157,287 7,108,196 6,751,898 6,412,687 10.8% 5.3%

Other financial liabilities 22,565 14,376 15,548 13,695 5.0% -7.5%

Current taxes 17,106 10,898 146,922 99,551 -89.1% -92.6%

Deferred taxes 138 88 91 209,340 -100.0% -3.3%

Provisions 1,095,275 697,789 716,240 801,270 -12.9% -2.6%

Other liabilities 609,579 388,357 350,448 277,004 40.2% 10.8%

TOTAL LIABILITIES 56,610,402 36,065,921 35,413,673 35,032,880 2.9% 1.8%

Capital 901,964 574,632 574,632 574,632 0.0% 0.0%

Reserves 1,688,088 1,075,464 1,015,238 943,854 13.9% 5.9%

Valuation accounts -45,636 -29,074 -14,472 -8,053 261.0% 100.9%

Retained earnings

From previous periods 0 0 120,501 147,090 - -

Net income for the period 120,237 76,602 44,672 69,700 9.9% 71.5%

Provision for distribution of income to the benefit of the state -60,119 -38,301 -82,587 -141,312 -72.9% -53.6%

Total owners' equity 2,604,535 1,659,323 1,657,984 1,585,911 4.6% 0.1%

Non-controlling interests 18,016 11,478 8,573 10,045 14.3% 33.9%

TOTAL EQUITY 2,622,551 1,670,801 1,666,557 1,595,956 4.7% 0.3%

TOTAL LIABILITIES AND EQUITY 59,232,953 37,736,722 37,080,230 36,628,836 3.0% 1.8%

* Balance sheet items are translated at the average observed exchange rate in Jun.2018 (Ch$ 637.09)

26

ANNEX 1: BALANCE SHEET

2Q18 2Q18 1Q18 2Q17US$ ths* Ch$ million Ch$ million Ch$ million 2Q18 / 2Q17 2Q18 / 1Q18

Interest income 753,200 479,856 449,338 449,692 6.7% 6.8%

Interest expense -372,227 -237,142 -212,590 -218,499 8.5% 11.5%

Net interest income 380,973 242,714 236,748 231,193 5.0% 2.5%

Fees and commission income 180,488 114,987 112,271 99,056 16.1% 2.4%

Fees and commission expense -66,316 -42,249 -37,155 -35,543 18.9% 13.7%

Net fee and commission income 114,172 72,738 75,116 63,513 14.5% -3.2%

Net gain (loss) from financial operations 19,256 12,268 25,484 21,687 -43.4% -51.9%

Foreign exchange gain (loss) net 39,866 25,398 5,345 1,938 1210.5% 375.2%

Other operating revenue 2,728 1,738 3,204 2,075 -16.2% -45.8%

Total operating income 556,995 354,856 345,897 320,406 10.8% 2.6%

Provision for loan losses -124,050 -79,031 -52,116 -52,188 51.4% 51.6%

NET OPERATING PROFIT 432,945 275,825 293,781 268,218 2.8% -6.1%

Personnel salaries and expenses -163,471 -104,146 -110,136 -103,591 0.5% -5.4%

Administrative expenses -99,159 -63,173 -71,676 -64,673 -2.3% -11.9%

Depreciation and amortization -31,146 -19,843 -20,262 -20,069 -1.1% -2.1%

Impairment 0 0 0 0 - -

Other operating expenses -16,098 -10,256 -11,391 -9,938 3.2% -10.0%

TOTAL OPERATING EXPENSES -309,875 -197,418 -213,465 -198,271 -0.4% -7.5%

Net operating income 123,071 78,407 80,316 69,947 12.1% -2.4%

Income (loss) from investments in other companies 1,455 927 429 531 74.6% 116.1%

Income before income taxes 124,526 79,334 80,745 70,478 12.6% -1.7%

Income taxes -69,282 -44,139 -32,978 -40,836 8.1% 33.8%

NET INCOME FOR THE PERIOD 55,243 35,195 47,767 29,642 18.7% -26.3%

Net income attributable to equity holders of the bank 50,119 31,930 44,672 26,596 20.1% -28.5%

Net income attributable to non-controlling interest 5,125 3,265 3,095 3,046 7.2% 5.5%

* Income statements are translated at the average observed exchange rate in Jun.2018 (Ch$ 637.09)

∆%

27

ANNEX 1: BALANCE SHEET

• BANCO ESTADO.

WWW.BANCOESTADO.CL

• SUPERINTENDENCY OF BANKS / SUPERINTENDENCIA DE BANCOS E INSTITUCIONES

FINANCIERAS.

WWW.SBIF.CL

• CHILEAN CENTRAL BANK / BANCO CENTRAL.

WWW.BCENTRAL.CL

• BUDGET DIRECTORATE / DIRECCIÓN DE PRESUPUESTOS – MINISTERIO DE HACIENDA.

WWW.DIPRES.CL

• NATIONAL INSTITUTE OF STATISTICS / INSTITUTO NACIONAL DE ESTADÍSTICAS.

WWW.INE.CL

• FOREIGN INVESTMENT PROMOTIONAL AGENCY/ AGENCIA DE PROMOCIÓN DE INVERSIÓN

EXTRANJERA

WWW.INVESTCHILE.GOB.CL

28

SOURCES

http://www.bancoestado.cl/

http://www.sbif.cl/

http://www.bcentral.cl/

http://www.dipres.cl/

http://www.ine.cl/

http://www.ine.cl/

FINANCIAL RESULTS AS OF MARCH 2018

CORPORATE PRESENTATIONFINANCIAL RESULTS AS OF MARCH 2018

Documents

CORPORATE PRESENTATION - corporativo.bancoestado.cl · temuco copiap ó valdivia punta ... and caja vecina long history as a cornerstone of chile’s financial sector and engine of