4Q22

Quarterly and YTD Financial Report

MANAGEMENT FINANCIAL REVIEW

Table of Contents

I.

About Banco de Chile

6

Our History

Financial Snapshot on Banco de Chile

II.

Corporate Governance

8

  • Equity Composition and Ownership Structure
  • Board of Directors, Committees and Managerial Structure

III.

Business Strategy

11

  • Competitive Strengths and Resources
  • Corporate Statements, Commitments and Strategic Pillars
  • Business Trends
  • Strategic Initiatives
  • Stakeholders Engagement
  • Business Segments Description

IV.

Economic and Business Environment

24

  • Regulation & Supervision
  • Economic Outlook
  • Competitive Landscape
  • Banking Industry Performance and Competitive Position
  • Key Business Drivers

V.

Management Discussion & Analysis

30

  • Snapshot on Strategic Advances
  • Income Statement Analysis
  • Business Segments Performance
  • Balance Sheet Analysis

VI.

Risk & Capital Management

56

  • Risk Management Approach
  • Funding Concentration and Liquidity
  • Market Risk
  • Operational Risk
  • Capital Adequacy and Credit Ratings

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About this Report

Basis for Presentation

This financial report, which accompanies our quarterly financial statements, has been prepared as requested by the Chilean Financial Market Commission (CMF) in the Compendium of Accounting Standards for Banks while being elaborated in accordance with the IFRS Practice Statement 1 - Management Commentary as issued by the International Accounting Standards Board (IASB).

Figures included in this report "Financial Management Review", for purposes of analysis, are based on both the financial statements and management information systems of Banco de Chile.

Forward - Looking Information

The information contained herein incorporates by reference statements which constitute ''forward-looking statements,'' in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating performance. Such statements include any forecasts, projections and descriptions of anticipated cost savings or other synergies. You should be aware that any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties, and that actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, without limitations, the actions of competitors, future global economic conditions, market conditions, foreign exchange rates, and operating and financial risks related to managing growth and integrating acquired businesses), many of which are beyond our control. The occurrence of any such factors not currently expected by us would significantly alter the results set forth in these statements.

Factors that could cause actual results to differ materially and adversely include, but are not limited to:

  • changes in general economic, business or political or other conditions in Chile or changes in general economic or business conditions in Latin America;
  • changes in capital markets in general that may affect policies or attitudes toward lending to Chile or Chilean companies;
  • unexpected developments in certain existing litigation;
  • increased costs;
  • unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms;
  • natural disasters or pandemics, such as the coronavirus known as COVID19;
  • the effect of tax laws or other kind of regulation on our business;
  • other risk factors as reported in our form 20F filed with the U.S. SEC.

Undue reliance should not be placed on such statements, which speak only as of the date that they were made. Our independent public accountants have not examined or compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we may issue in the future. We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Contacts

Pablo Mejia

Daniel Galarce

Head of Investor Relations

Head of Financial Control & Capital

Investor Relations | Banco de Chile

Financial Control & Capital Area | Banco de Chile

pmejiar@bancochile.cl

dgalarce@bancochile.cl

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EY Chile

Tel: +56 (2) 2676 1000

Avda. Presidente

www.eychile.cl

Riesco 5435, piso 4,

Las Condes, Santiago

Independent Auditor's Report

(Free translation of a report originally issued in Spanish)

To the Shareholders and the Board of Directors

Banco de Chile

We have reviewed the accompanying presentation of "Management Commentary" financial report of Banco de Chile and its subsidiaries for the year 2022, taken as a whole. In connection to this review, we have audited, in accordance with generally accepted auditing standards in Chile, the consolidated financial statements, of Banco de Chile and its subsidiaries as of al December 31,

2022 and for the year then ended and the related notes to the consolidated financial statements.

In our report dated January 26, 2023, we issued an unqualified opinion on such consolidated financial statements.

Management's Responsibility

The Bank's Management is responsible for the preparation and fair presentation of this "Management Commentary" of Banco de Chile and its subsidiaries in accordance with standards and instructions issued by the Chile's Financial Market Commission (CMF), established in Chapter C-1 of the Compendium of Accounting Standards for Banks.

Auditor's Responsibility

Our review was conducted in accordance with attestation standards issued by the Institute of Chilean Accountants. A review, consists, mainly, in the application of analytical procedures and making inquiries to those responsible for financial and accounting matters. A review consists mainly of applying analytical procedures and making inquiries, primarily of persons responsible for financial and accounting matters. A review is substantially less in scope than an exam which objective would be to present an opinion over the Management Commentary. Therefore, we do not express such opinion.

The "Management Commentary" contains non-financial information such as operational and commercial information, sustainability indicators, macroeconomics projections and managerial information and others. Although this information may provide other additional elements for the analysis of the financial situation and results of the operations of Banco de Chile and its subsidiaries, our review does not extend to such type of information.

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The preparation and presentation of the "Management Commentary" of Banco de Chile and its subsidiaries as of December 31, 2022 requires management to interpret certain criteria, make determinations regarding the relevance of the information to be included and make estimates and assumptions that affects the information presented. The "Management Commentary" of Banco de Chile and its subsidiaries as of December 31, 2022 includes current and prospective information that estimates the future impact of transactions and events that have occurred or are expected to occur, estimates future expected sources of liquidity and financial resources, and also estimates operational and macroeconomic trends and commitments and uncertainties. The results obtained in the future may differ significantly from the current evaluation of this information presented by the management of Banco de Chile and its subsidiaries due the facts and circumstances frequently do not occur as expected. Our review has considered such information only to the extent that it has been used in the preparation and presentation of the financial information contained in the "Management Commentary" and not to express a conclusion on such information itself.

Conclusion

Based in our review, we are not aware of any significant changes that should be made to the presentation of the "Management Commentary" of Banco de Chile and its subsidiaries so that such presentation: i) Is in accordance with the elements required by the standards and instructions from the Chile's Financial Market Commission (CMF); ii) the historical financial amounts included in the presentation have been correctly extracted from the consolidated financial statements of Banco de Chile and its subsidiaries and iii) the information, determinations, estimates and underlying assumptions of Banco de Chile and its subsidiaries are consistent with the bases used for the preparation of the financial information contained in such presentation.

Eduardo Rodríguez B.

EY Audit Ltda.

Santiago, January 26, 2023

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Banco de Chile published this content on 30 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 12:23:09 UTC.