CORPORATE PRESENTATION

3Q23

CONTENTS

1. Chilean Macro Environment

1.2. Chilean Financial System

3. Banco de Chile:

2. - Business Model & Key Metrics

  • Competitive Strengths & Strategy
  • Financial Performance 2018 - 2023

4. 3Q23 Financial Results in CLP

Chilean Macro

Environment

A successful growth story…

Per capita GDP

PPP, 1980 = 100

900

800

Argentina

Brazil

Chile

Colombia

700

Mexico

Peru

Venezuela

600

500

400

300

200

100

0

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Per capita GDP

PPP, USD

35,000

Argentina

Brazil

Chile

Colombia

30,000

Mexico

Peru

Venezuela

25,000

20,000

15,000

10,000

5,000

0

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Per capita GDP 2022

PPP, USD

28,887

26,074

22,440

18,693 17,684

15,273

7,108

Chile

Argentina Mexico colombia

Brazil

Peru Venezuela

Source: IMF.

4

… which led to a strong improvement in social development

Life expectancy at birth

Total years

79

76

75

74 74

70

Chile Argentina Colombia Brazil

Peru

Mexico

Gini Index

Chile

56.2

44.9

1987

1990

1992

1994

1996

1998

2000

2003

2006

2009

2011

2013

2015

2017

2020

Human Capital Index

Scale 0-1

0.652

0.613

0.605 0.604 0.602

0.552

Chile

Mexico

Peru Colombia Argentina Brazil

Life expectancy at birth

Total years, Chile

79

73

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

People using safely managed drinking water services

% of population

99

86

73

51

43

Chile Brazil Colombia Peru Mexico

Individuals using the Internet

% of population, Chile

88.3

0.0

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Source: The World Bank.

5

Key reforms behind Chile's success

Chile implemented a deep transformation in its economic

model between late 70 and early 80, including:

  1. To integrate Chile into the global economy. Today, there are free trade agreements with almost 90% of global GDP.
  2. Reduce the fiscal spending by promoting private investment and rule of law. Government responsible for providing some public goods and regulation.
  3. Economic policies are isolated from the central government:
    • Central Bank has been independent since 1989.
    • Monetary policy based in CPI target.
    • Fiscal Policy has been driven by a rule since 2001.
    • Financial and Banking regulator (CMF) has a similar governance to the Central Bank (board independent from de FM).

Headline CPI

YoY, %

40

35

30

25

20

15

10

5

0

-5

Jun-94Dec-95Jun-97Dec-98Jun-00

Dec-01

Dec-89Jun-91

Dec-92

Jun-03

Dec-04

Jun-06Dec-07

Jun-09Dec-10

Jun-12

Dec-13

Jun-15

Dec-16Jun-18Dec-19

Jun-21

Dec-22

Sovereign Rating

S&P

Chile

A

Peru

BBB+

Mexico

BBB+

Colombia

BB+

Brazil

BB-

Argentina

CCC+

Venezuela

C

6

A well diversified and open economy

Exports and Imports

Capital Inflows to Chile

An Economy Open to the World

USD Bn

USD Bn

•

Free Trade Agreements with almost

120

Exports Imports

104.4

100

•

90% Global GDP

Current account deficit financed by FDI

100

97.5

80

60

80

60

94.6

•

inflows

Trade Volume 54% of GDP

40

20

0

2004

2007

2010

2013

2016

2019

2022

Exports by Sector

% of total, 2022

WineMachinery

2% Forestry

40

20

0

2004

2007

2010

2013

2016

2019

2022

Exports by Destination

% of total, 2022

Others

Latam

GDP by Sector

Main sectors, % of total, 2022

Services

32%

Others

22%

Minning

14%

2%

7%

Chemicals

3%

Rest Asia

14%

Manufaturing

10%

Total Exports:

US$99 Bn

Copper

45%

9%

Others

16%

19%

U.S.

14%

Europe

10%

Commerce

9%

Construction

6%

Public Adm

4%

Food

19%

Source: Central Bank of Chile.

China 40%

Agriculture

3%

Source: trade.org,International Monetary Fund (IMF) & Central Bank of Chile.

7

Global slowdown affecting Chilean economy…

Five-year Global Growth Projections

%

World Economic Outlook

Consensus Economics

5%

4%

4%

3%

3.1%

3%

3.0%

2%

2022

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2024

2026

2028

Monthly Chile's GDP Growth

YoY, Ma3

19%

14%

9%

4%

Manufacturing Indicators (PMI)

Levels

U.S.

China

Global

Euro

65

60

55

50

45

40

35

30

Aug-20

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

Aug-21

Oct-21

Dec-21

Feb-22

Apr-22

Jun-22

Aug-22

Oct-22

Dec-22

Feb-23

Apr-23

Jun-23

Aug-23

Current Account Balance

LTM, % GDP

8%

4%

0%

-1%

-6%

0.0%

-4%

-4.2%

-8%

-11%

-16%

Aug-17

Feb-18

Aug-18

Feb-19

Aug-19

Feb-20

Aug-20

Feb-21

Aug-21

Feb-22

Aug-22

Feb-23

Aug-23

-12%

Jun-17

Dec-17

Jun-18

Dec-18

Jun-19

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Source: Central Bank of Chile, Bloomberg and IMF.

8

…and contributing to lowering inflation and monetary policy rate

Headline and Core CPI

YoY

16%

14%

CPI

Core CPI

12%

10%

8%

6%

5.2%

4%

5.1%

2%

0%

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Sep-23

Sep-17

Sep-18

Sep-19

Sep-20

Sep-21

Sep-22

Overnight Rate

EoP

12%

10%

9.5%

8%

6%

4%

2%

0%

Sep-17

Mar-18

Sep-18

Mar-19

Sep-19

Mar-20

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

Source: Central Bank of Chile and Bloomberg.

Unemployment Rate

% of Labor Force

14%

12%

10%

9.0%

8%

6%

4%

2%

0%

Sep-17

Mar-18

Sep-18

Mar-19

Sep-19

Mar-20

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

CLP and Multilateral USD

CLP / USD

1100

120

1000

CLP

DXY

115

900

110

800

105

100

700

95

600

90

500

85

Mar-21

Sep-21

Sep-17

Mar-18

Sep-18

Mar-19

Sep-19

Mar-20

Sep-20

Mar-22

Sep-22

Mar-23

Sep-23

9

Chile: Baseline Scenario

Banco de Chile's Forecast

YoY, %

2020

2021

2022

2023f

2024f

GDP

-6.1

11.7

2.4

-0.2

1.7

Consumption

-6.6

19.3

3.1

-3.8

1.8

Investment

-10.8

15.7

2.8

-2.2

-0.4

Exports

-0.9

-1.4

1.4

1.3

3.8

Imports

-12.3

31.8

0.9

-8.0

3.4

CPI

3.0

7.2

12.8

4.2

3.0

Overnight Rate (EOP)

0.5

4.0

11.25

8.00

5.00

Exchange Rate (EOP)

711

840

859

880

850

Fiscal Balance (% GDP)

-7.3

-7.6

1.1

-2.9

-1.5

Current Account (% GDP)

-1.9

-7.5

-9.0

-4.0

-2.5

Source: Central Bank of Chile, Banco de Chile.

Inflation and Overnight Rate Quarterly Forecast

EOP

CPI

Overnight rate

9.50%

8.00%

7.00%

6.25%

5.50%

5.1%

5.00%

4.2%

3.5% 3.3% 3.0% 3.0%

Sept-23Dec-23Jan-24Jun-24Sept-24Dec-24

10

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Banco de Chile published this content on 21 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 16:20:04 UTC.