Profile: Banco de Chile (BCH)

Banco de Chile (the Bank) is a commercial bank that provides a range of financial products and services to a broad customer base that includes large corporations, small and medium-sized businesses, and the retail market. Its business is organized based on six principal commercial divisions: large corporations, small and medium-sized businesses, the retail market, the consumer market, international banking and the securities markets. In addition, the subsidiaries complete the range of financial services with securitization, securities trading, investment and mutual funds, insurance, financial consultancy and factoring. Its business is organized on the basis of two markets: the Wholesale Market, which includes corporates, wholesale, large companies and real estate, investment banking and capital markets, and treasury, and the Retail Market, which covers operations with individuals and middle market companies, and Banco CrediChile. On January 1, 2008, the merger of Banco de Chile with Banco Citibank Chile was effective.

As of December 31, 2008, the Bank’s total loans amounted to Ch$13,649,005 million. As of December 31, 2008, the Bank’s investment portfolio amounted to Ch$1,751,281 million. The Bank’s investment portfolio is classified as available for sale, as a result of the classification criteria standardization between Banco de Chile and Citibank Chile. Its subsidiaries include Banchile Administradora General de Fondos, Banchile Corredores de Bolsa, Banchile Corredores de Seguros, Banchile Factoring and Banchile Securitizadora.

Retail Market

The Individuals and Middle Market Companies Division is responsible for offering financial services to individuals with monthly income of over Ch$400,000, and to small and medium business with annual sales of up to Ch$1.400 million. Its distribution networks include eight attention centers for Private Banking customers, 39 branches that operate under the Banco Edwards Citi image, and 19 cash agencies. These are complemented by a network of 1,489 automated teller machines (ATM) and 417 self-consulting terminals. The Division offers its Individuals Banking customers a range of products and services that include checking accounts, automatic bill payments, debit cards, credit cards, free-purpose credit lines, housing loans in their different structures, consumer loans, life and general insurance, savings instruments, mutual funds, stock trading and foreign currency services. In addition, for each segment, the Division has different value proposals by product, brand, pricing and service channels. In the business area, the Division provides financial services to approximately 65% of the medium-sized businesses in the country and over 40% of small businesses.

The objective market of Banco CrediChile is the workers, pensioners and micro-businesses in the C3 and D social-economic segments. The Division has 1,050,000 customers, to whom it offers a range of products and services, including consumer loans, credit and debit cards, life and general insurance, remuneration credits, and sight and time savings accounts.

Wholesale Market

Through the Wholesale, Large Companies and Real Estate Division, Banco de Chile provides its customers with financial services according to the segment, to which they belong and their business in the different regions of the country. The Wholesale, Large Companies and Real Estate Division offers its products and services to customers with annual sales between Ch$1,400 million and Ch$70,000 million approximately. The Corporate and Investments Division offers its services through three sub-divisions: Corporate Banking, Investment Banking and Capital Markets, and Treasury. Corporate Banking’s customers include the large business conglomerates in Chile, counting the financial, commercial, manufacturing, infrastructure, concessions and services sectors.

The Investment Banking and Capital Markets Division provides integral advice to its customers, and provides the necessary support for accessing local and international financial markets. Treasury is the business unit responsible for managing the Bank’s liquidity, managing net positions, managing the financial investment portfolio and developing derivative products for its own or customers’ hedging.