BANCO DE CHILE : Quarterly Liquidity Report As of December 31st 2019

BANCO DE CHILE

Quarterly Liquidity Report

As of December 31st2019

1. About the publication of the Liquidity Report

According to Title V: Información al Público, of Chapter 12-20 Gestión y medición de la posición de liquidez of the Superintendence of Banks and Financial Institutions (from this point forward, "SBIF") Updated Reviewed Norms and in compliance with number 14 of the Chapter III.B.2.1 of the Financial Norms Compendium of the Central Bank of Chile (from this point forward, "BCCh"), Banco de Chile (from this point forward, the "Bank") publish quarterly liquidity report.

2. Individual and Consolidated Liquidity cash flow reports

INDIVIDUAL LIQUIDITY REPORT

CONTRACTUAL MATURITY & CUMMULATIVE CASHFLOWS BASIS

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

ALL CURRENCIES	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	6.886.114	8.125.198	8.972.142	11.419.878
Outflows	14.655.598	16.359.745	19.052.364	21.979.568
Liquidity Gap	(7.769.484)	(8.234.547)	(10.080.222)	(10.559.690)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
2 x Tier 1 Capital				7.056.447
LIQUIDITY SURPLUS/(DEFICIT)			(6.551.998)	(3.503.244)
FOREIGN CURRENCY	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	1.595.234	1.641.966	1.592.417	1.849.389
Outflows	1.941.021	2.187.304	2.646.391	3.420.330
Liquidity Gap	(345.787)	(545.337)	(1.053.973)	(1.570.942)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
LIQUIDITY SURPLUS/(DEFICIT)			2.474.250	-

1

INDIVIDUAL LIQUIDITY REPORT

BEHAVIOURAL1MATURITY & CUMMULATIVE CASHFLOWS BASIS

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

ALL CURRENCIES	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	6.669.580	7.601.435	7.949.309	9.393.152
Outflows	7.670.024	8.545.000	9.941.635	12.220.520
Liquidity Gap	(1.000.444)	(943.565)	(1.992.326)	(2.827.367)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
2 x Tier 1 Capital				7.056.447
LIQUIDITY SURPLUS/(DEFICIT)			1.535.897	4.229.080
FOREIGN CURRENCY	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	1.496.338	1.496.338	1.271.538	1.249.214
Outflows	1.247.826	1.433.827	1.797.869	2.517.649
Liquidity Gap	248.513	62.511	(526.330)	(1.268.435)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
LIQUIDITY SURPLUS/(DEFICIT)			3.001.893	-

CONSOLIDATED LIQUIDITY REPORT

CONTRACTUAL MATURITY & CUMMULATIVE CASHFLOWS BASIS

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

ALL CURRENCIES	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	7.477.827	8.724.307	9.615.559	12.092.615
Outflows	15.245.330	16.956.776	19.660.166	22.595.698
Liquidity Gap	(7.767.503)	(8.232.469)	(10.044.607)	(10.503.083)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
2 x Tier 1 Capital				7.056.447
LIQUIDITY SURPLUS/(DEFICIT)			(6.516.383)	(3.446.636)
FOREIGN CURRENCY	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	1.595.211	1.641.899	1.592.332	1.849.256
Outflows	1.941.021	2.187.304	2.646.436	3.420.376
Liquidity Gap	(345.810)	(545.404)	(1.054.104)	(1.571.120)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
LIQUIDITY SURPLUS/(DEFICIT)			2.474.119	-

1Behavioral assumptions are included for some balance sheet items.

2

CONSOLIDATED LIQUIDITY REPORT

BEHAVIOURAL2MATURITY & CUMMULATIVE CASHFLOWS BASIS

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

ALL CURRENCIES	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	7.261.293	8.200.544	8.592.726	10.065.890
Outflows	8.259.756	9.142.031	10.549.437	12.836.649
Liquidity Gap	(998.463)	(941.487)	(1.956.711)	(2.770.760)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
2 x Tier 1 Capital				7.056.447
LIQUIDITY SURPLUS/(DEFICIT)			1.571.512	4.285.687
FOREIGN CURRENCY	Up to 7 days	Up to 15	Up to 30	Up to 90
days	days	days
Inflows	1.517.092	1.496.272	1.271.453	1.249.081
Outflows	1.247.826	1.433.828	1.797.914	2.517.694
Liquidity Gap	269.266	62.444	(526.461)	(1.268.613)
Regulatory limits:
1 x Tier 1 Capital			3.528.223
LIQUIDITY SURPLUS/(DEFICIT)			3.001.762	-

3. Liquidity Coverage Ratio (LCR)

Individual and Consolidated SBIF C48 Report as of December 31st.

LCR - December 2019

Individual Report	Consolidated Report
1,13	1,02

2Behavioral assumptions are included for some balance sheet items.

3

4. Liquid Assets profile

LIQUID ASSETS

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

			Cash and Due
3.230,2	3.022,2		Investments marked at
	market prices

5. Sources of Funding profile

MAIN FUNDING SOURCES

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31ST, 2019 (Amounts expressed in MM $)

	5.191,9		Demand deposits accounts
		Savings accounts and time
			deposits
8.813,4	11.326,1		Borrowings from financial
			institutions

Debt issued

1.557,1

Others

10.856,6

4

6. In-houseLiquidity reports

a. Market Access Report (MAR)

MAR illustrates Bank's cash funding needs in a business-as-usual operations environment. The main aspects of these conditions are the following: loans are permanently rolled over; some portion of the deposits, mainly those deposited by wholesale customers, are withdrawn when due, derivatives cash flows are settled at maturity and liquid assets in excess of the liquidity buffer might be sold. Thus, the resulting number corresponds to the amount of funding the Bank usually access through the money-market participants.

	MAR All currencies
	Jan 2019 - Sep 2019	4q 2019
	MMM $	MMM $
Max	3.352	3.066
Min	2.027	1.705
Average	2.661	2.504
	MAR Foreign currencies
	Jan 2019 - Sep 2019	4q 2019
	MMM $	MMM $
Max	1.999	1.377
Min	489	1
Average	1.136	799

b. Financial Ratios
	Eligible Assets for Liquidity Buffer as a percentage of 30-days
		MAR3
	Jan 2019 - Sep 2019		4q 2019
	%		%
Max	103%		100%
Min	82%		86%
Average	91%		95%

	Deposits as a percentage of Loans
	Jan 2019 - Sep 2019	4q 2019
	%	%
Max	62%	62%
Min	58%	59%
Average	60%	60%

3This number excludes cash surplus above Liquidity Buffer.

5

Liabilities maturing beyond 1 year as a percentage of Assets maturing

beyond 1 year

	Jan 2019 - Sep 2019	4q 2019
	%	%
Max	79%	82%
Min	76%	79%
Average	77%	80%

6