Banco de Chile reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, net interest income was CLP 316,517 million against CLP 303,540 million a year ago. Total operating revenues were CLP 444,919 million against CLP 422,719 million a year ago. Net operating income was CLP 169,727 million against CLP 167,411 million a year ago. Income before income tax was CLP 170,884 million against CLP 168,402 million a year ago. Net income attributable to bank's owners was CLP 142,651 million against CLP 139,993 million a year ago. The increase in net income was driven by focusing growth in segments with higher profitability, a moderate increase in volumes, improved spreads and a proactive management of U.S. asset exposure that provided higher revenues from inflation and lower cost of funds in the quarter. Net income per share was CLP 1.43 against CLP 1.43 a year ago. When adjusted for one-time expense, net income for the quarter would have reached CLP 147 billion, 5% higher than the same quarter last year and just over 3% with respect to the fourth quarter of this year. Total cash flows from operating activities were CLP 121,792 million against CLP 239,846 million a year ago. Book value per share was CLP 31.20 against CLP 29.67 a year ago. Return on average equity was 18.22% against 19.14% a year ago. Return on average total assets was 1.72% against 1.78% a year ago.

In terms of the effective tax rate for 2018. The company announced that the tax authorities use inflation accounting to calculate taxable income, so depending on what happens with inflation from one quarter to the next, the company can adjust that figure but it looks at the levels for 2018, the company is expecting inflation around the 2.5%, and maybe a little bit higher. Around that level, the company should expect an effective tax rate of 20%.