Banco de Credito e Inversiones : Consolidated Interim Financial statements as of September 30th, 2021

Interim Consolidated Financial Statements

As of September 30, 2021 and December 31, 2020 and for the periods ended September 30, 2021 and 2020.

CONTENT

Interim Consolidated Statements of Financial Position Interim Consolidated Statements of Income

Interim Consolidated Statements of Other Comprehensive Income Interim Consolidated Statements of Changes in Equity

Interim Consolidated Statements of Cash Flows

Notes to the Interim Consolidated Financial Statements

TABLE OF CONTENTS

Interim Consolidated Financial Statements
Interim Consolidated Statements of Financial Position	2
Interim Consolidated Statements of Income	3
Interim Consolidated Statements of Other Comprehensive Income	4
Interim Consolidated Statements of Changes in Equity	5
Interim Consolidated Statements of Cash Flows	6
Notes to the Interim Consolidated Financial Statements
NOTE 1 - GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	8
NOTE 2 - ACCOUNTING CHANGES	62
NOTE 3 - SIGNIFICANT EVENTS	62
NOTE 4 - BUSINESS COMBINATION	67
NOTE 5 - INFORMATION BY SEGMENTS	71
NOTE 6 - CASH AND CASH EQUIVALENTS	75
NOTE 7 - TRADING PORTFOLIO FINANCIAL ASSETS	76
NOTE 8 - INVESTMENTS UNDER AGREEMENTS TO RESELL AND LIABILITIES UNDER AGREEMENTS TO
REPURCHASE	77
NOTE 9 - DERIVATIVE FINANCIAL AGREEMENTS AND HEDGE ACCOUNTING	79
NOTE 10 - LOANS AND RECEIVABLES FROM BANKS	84
NOTE 11 - LOANS TO AND RECEIVABLES FROM CUSTOMERS	85
NOTE 12 - FINANCIAL INVESTMENTS	94
NOTE 13 - INVESTMENTS IN OTHER COMPANIES	95
NOTE 14 - INTANGIBLE ASSETS	96
NOTE 15 - PROPERTY, PLANT AND EQUIPMENT	100
NOTE 16 - CURRENT AND DEFERRED INCOME TAX	105
NOTE 17 - OTHER ASSETS	110
NOTE 18 - DEPOSITS AND OTHER ON-DEMAND LIABILITES AND ON-DEMAND DEPOSITS	111
NOTE 19 - BANK BORROWINGS	112
NOTE 20 - DEBT SECURITIES ISSUED AND OTHER FINANCIAL LIABILITIES	112
NOTE 21 -PROVISIONS	119
NOTE 22 - OTHER LIABILITIES	121
NOTE 23 - CONTINGENCIES AND COMMITMENTS	121
NOTE 24 - SHAREHOLDERS' EQUITY	126
NOTE 25 - INTEREST INCOME AND EXPENSES AND INDEXATION FOR INFLATION	131
NOTE 26 - FEE AND COMMISSION INCOME AND EXPENSES	132
NOTE 27 - GAIN OR LOSS FROM FINANCIAL OPERATIONS	133
NOTE 28 - NET FOREIGN EXCHANGE GAIN OR LOSS	133
NOTE 29 - PROVISIONS AND IMPAIRMENT FOR CREDIT RISK	134
NOTE 30 - STAFF COSTS	136
NOTE 31 - ADMINISTRATIVE EXPENSES	136
NOTE 32 - DEPRECIATION, AMORTIZATION AND IMPAIRMENT	137
NOTE 33 - OTHER OPERATING INCOME AND EXPENSES	139
NOTE 34 - TRANSACTIONS WITH RELATED PARTIES	140
NOTE 35 - ASSETS AND LIABILITIES AT FAIR VALUE	149
NOTE 36 - RISK MANAGEMENT	153
NOTE 37 - MATURITIES OF ASSETS AND LIABILITIES	194
NOTE 38 - FOREIGN CURRENCY	196
NOTE 39 - SUBSEQUENT EVENTS	197

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BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of September 30, 2021 and December 31, 2020

(In millions of Chilean pesos - MCh$)

		As of September 30	As of December 31
	Note	2021	2020
		MCh$	MCh$
ASSETS
Cash and deposits in banks	6	3,545,494	4,597,867
Items in course of collection	6	440,873	236,710
Securities held for trading	7	740,959	1,147,279
Agreements to repurchase and securities lending	8	194,813	190,248
Derivative financial agreements and hedge accounting	9	5,904,752	5,451,897
Loans and receivables to banks, net	10	493,888	356,669
Loans and receivables to customers, net	11	37,894,431	34,718,681
Financial investments available for sale	12	11,921,260	7,996,040
Financial investments held to maturity	12	851,661	25,144
Investments in other companies	13	30,074	26,625
Intangible assets	14	414,869	395,276
Property, plant and equipment, net	15	248,084	251,217
Right-of-use asset	15	188,262	204,807
Current income tax	16	62,327	36,270
Deferred income taxes	16	243,981	211,224
Other assets	17	1,249,824	1,310,345
TOTAL ASSETS		64,425,552	57,156,299
LIABILITIES
Deposits and other on-demand liabilities	18	25,265,611	19,726,574
Items in course of collection	6	357,384	201,438
Liabilities under agreements to repurchase	8	367,556	350,314
Deposits and other term loans	18	10,123,934	10,839,611
Derivative financial agreements and hedge accounting	9	5,633,600	5,793,354
Bank borrowings	19	6,840,114	6,270,699
Debt issued	20	8,195,859	7,431,624
Other financial liabilities	20	972,928	911,044
Lease liabilities	15	172,569	186,293
Current income tax	16	163,778	9,072
Deferred income taxes	16	1,018	22,188
Provisions	21	639,789	441,577
Other liabilities	22	1,338,462	1,077,806
TOTAL LIABILITIES		60,072,602	53,261,594
SHAREHOLDERS' EQUITY
Attributable to equity holders of the Bank:
Capital		3,862,386	3,655,828
Reserves		109	109
Accumulated other comprehensive income		216,189	22,223
Retained earnings:
Net income from prior periods		-	(6,758)
Profit or loss for the year	24	389,772	317,454
Less: Accrual for minimum dividends	24	(116,932)	(95,236)
TOTAL EQUITY OF EQUITY HOLDERS OF THE BANK		4,351,524	3,893,620
Non-controlling interest		1,426	1,085
TOTAL SHAREHOLDERS' EQUITY		4,352,950	3,894,705
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY		64,425,552	57,156,299

The accompanying notes No. 1 to No. 39 are an integral part of the interim consolidated financial statements.

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BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF INCOME

For the periods ended September 30, 2021 and 2020

(In millions of Chilean pesos - MCh$)

		As of September 30
	Note	2021	2020
		MCh$	MCh$
Interest income	25	1,594,008	1,535,108
Interest expense	25	(452,803)	(467,901)
Net interest income		1,141,205	1,067,207
Fee and commission income	26	346,187	331,856
Fee and commission expense	26	(92,978)	(72,048)
Net fee and commission income		253,209	259,808
Net gain from financial operations	27	95,917	172,494
Foreign exchange gain (loss), net	28	20,398	(4,578)
Other operating income	33	37,285	34,084
Operating income		1,548,014	1,529,015
Provisions for loan losses	29	(248,412)	(492,833)
OPERATING INCOME, NET OF ALLOWANCE FOR CREDIT RISK		1,299,602	1,036,182
Staff costs	30	(395,933)	(373,344)
Administrative expenses	31	(233,918)	(238,061)
Depreciation and amortization	32	(79,262)	(81,828)
Impairment of property, plant and equipment and intangible assets	32	(23)	(142)
Other operating expenses	33	(47,969)	(41,852)
TOTAL OPERATING EXPENSES		(757,105)	(735,227)
TOTAL NET OPERATING INCOME		542,497	300,955
Share of profit (loss) of investments accounted for using the equity method	13	(380)	873
Profit before tax		542,117	301,828
Income tax expense	16	(152,224)	(77,671)
Net income from continuing operations		389,893	224,157
Net income from discontinued operations		-	-
CONSOLIDATED PROFIT FOR THE PERIOD		389,893	224,157
Attributable to:
Equity holders of the Bank		389,772	224,099
Non-controlling interest		121	58
Total		389,893	224,157
Earnings per share:
(stated in Ch$)
Basic earnings per share		Ch$ 2,620	Ch$ 1,506
Diluted earnings per share		Ch$ 2,620	Ch$ 1,506

The accompanying notes No. 1 to No. 39 are an integral part of the interim consolidated financial statements.

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BANCO DE CRÉDITO E INVERSIONES AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

For the periods ended September 30, 2021 and 2020

(In millions of Chilean pesos - MCh$)

		As of September 30
	Note	2021	2020
		MCh$	MCh$
CONSOLIDATED PROFIT FOR THE PERIOD		389,893	224,157
OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED
TO THE STATEMENT OF INCOME
Net (gain) loss resulting on revaluation of financial investments available for sale		(311,980)	3,154
Loss (gain) on cash flow hedge derivatives		364,698	(41,525)
Loss -cumulative translation adjustment		223,734	52,840
Other comprehensive income, net of tax		276,452	14,469
Income tax on other comprehensive income	16	(82,486)	11,709
Total other comprehensive income that may be reclassified to the
statements of income for the period		193,966	26,178
OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED
TO THE STATEMENT OF INCOME		220	(32)
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME		194,186	26,146
CONSOLIDATED TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD		584,079	250,303
Attributable to:
Equity holders of the Bank		583,958	250,277
Non-controlling interest		121	26
Comprehensive income per share attributable to equity holders of the Bank:
Basic comprehensive income per share		Ch$ 3,925	Ch$ 1,682
Diluted comprehensive income per share		Ch$ 3,925	Ch$ 1,682

The accompanying notes No. 1 to No. 39 are an integral part of the interim consolidated financial statements.

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