Business Segment

12 Months Ended

Dec. 31, 2025

Business Segment:

For management purposes, the Bank has organized its operations and commercial strategies into four business segments, which are defined in accordance with the type of products and services offered to target customers. These business segments are currently defined as follows:

Retail Banking:

This segment focuses on individuals and small and medium-sized companies (SMEs) with annual sales up to UF 70,000, where the product offering focuses primarily on consumer loans, commercial loans, checking accounts, credit cards, credit lines and residential mortgage loans.

Wholesale Banking:

This segment focused on corporate clients and large companies, whose annual revenue exceed UF 70,000, where the product offering focuses primarily on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases.

Treasury:

This segment includes revenues associated with the management of the investment portfolio and the business of financial transactions and currency trading.

Transactions with customers performed out by the Treasury are reflected in the respective aforementioned segments. These products are highly transaction-focused and include foreign exchange transactions, derivatives and financial instruments in general, among others.

Subsidiaries:

Corresponds to the businesses generated by the companies controlled by the Bank, which perform banking business support activities. Companies comprising this segment are the following:

	●	Banchile Administradora General de Fondos S.A.
	●	Banchile Asesoría Financiera S.A.
	●	Banchile Corredores de Seguros Ltda.
	●	Banchile Corredores de Bolsa S.A.
	●	Operadora de Tarjetas Banchile Pagos S.A.
	●	Socofin S.A. (*)

(*)	See Note 5 letter (d) and (g) on Relevant Events.

The financial information used to measure the performance of the Bank’s business segments is not comparable with similar information from other financial institutions because each institution relies on its own definitions. The accounting policies applied to the segments are the same as those described in the section (x) ¨Segment reporting¨ of the signifcant accounting policies. The Bank obtains the majority of the results from: interest, indexation, fees and commissions and financial transaction and changes, discounting provisions for credit risk and operating expenses. Management relies mainly on these concepts to evaluate the performance of the segments and make decisions about the goals and allocations of resources of each unit. Although the results of the segments reconcile with those of the Bank at the total level, this is not necessarily the case in terms of the different concepts, because management is measured and controlled individually and not on a consolidated basis, applying the following criteria:

●

The net interest margin of loans and deposits is obtained by aggregating the net financial margins of each individual operation of credit and deposit transactions performed by the Bank. For these purposes, the volume of each operation and its contribution margin are considered, which in turn corresponds to the difference between the effective rate of the customer and the internal transfer price established according to each transaction’s term and currency of each operation. Additionally, the net margin includes the result of interest and indexation from the accounting hedges.

●

Allowance for credit risk is determined at the customer and counterparty level based on the characteristics of each of their operations.

●

The capital and financial impacts on profit or loss have been assigned to each segment based on the risk-weighted assets.

●

Operating expenses are reflected at the level of the Bank´s different functional areas. Then, for the business segment purposes, the allocation of expenses from functional areas is done using different allocation criteria, at the level of the different concepts and expense items.

Taxes are managed at the consolidated level and are not allocated to business segments.

For the years ended December 31, 2025, 2024 and 2023 there was no income from transactions with a customer or counterparty that accounted for 10% or more of the Bank’s total revenues.

The following table presents the income, and assets and liabilities by segment as of and for the year ended December 31, 2025 for each of the segments defined above:

	As of December 31, 2025
	Retail Banking			Wholesale Banking			Treasury			Subsidiaries			Subtotal			Consolidation adjustments			Subtotal			Adjustments to conform IFRS			Note	Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$										MCh$
Net interest and Inflation indexation income		1,485,820			674,144			(107,552	)		(2,054	)		2,050,358			1,526			2,051,884			18,198				2,070,082
Net fee and commission income		362,587			93,767			3,399			197,034			656,787			(19,528	)		637,259			(16,556	)			620,703
Net Financial Result		6,111			50,055			171,280			50,411			277,857			(1,526	)		276,331			(4,017	)			272,314
Other income		40,666			15,608			—			6,714			62,988			(14,876	)		48,112			6,407				54,519
Income from investments in other companies		9,505			2,329			158			465			12,457			—			12,457			(474	)			11,983
Total operating income, before expected credit losses		1,904,689			835,903			67,285			252,570			3,060,447			(34,404	)		3,026,043			3,558		(1)		3,029,601
Expected credit losses		(378,738	)		1,228			(4,412	)		—			(381,922	)		—			(381,922	)		(12,940	)	(2)		(394,862	)
Total operating income, net of expected credit losses		1,525,951			837,131			62,873			252,570			2,678,525			(34,404	)		2,644,121			(9,382	)			2,634,739
Personnel expenses		(377,347	)		(113,707	)		(3,945	)		(75,377	)		(570,376	)		21			(570,355	)		—				(570,355	)
Administrative expenses		(331,250	)		(78,690	)		(2,366	)		(50,681	)		(462,987	)		33,354			(429,633	)		—				(429,633	)
Depreciation and amortization		(80,696	)		(7,103	)		(542	)		(6,769	)		(95,110	)		—			(95,110	)		—				(95,110	)
Impairment of non-financial assets		(335	)		(10	)		—			(1,537	)		(1,882	)		—			(1,882	)		—				(1,882	)
Other operating expenses		(25,590	)		(7,024	)		(32	)		(2,341	)		(34,987	)		1,029			(33,958	)		—				(33,958	)
Total operating expenses		(815,218	)		(206,534	)		(6,885	)		(136,705	)		(1,165,342	)		34,404			(1,130,938	)		—				(1,130,938	)
Net operating income before income tax		710,733			630,597			55,988			115,865			1,513,183			—			1,513,183			(9,382	)			1,503,801
Income tax														(320,921	)		—			(320,921	)		2,533		(3)		(318,388	)
Net income for the year														1,192,262			—			1,192,262			(6,849	)			1,185,413

Assets		25,819,643			12,536,827			14,154,573			1,285,572			53,796,615			(261,464	)		53,535,151			235,780				53,770,931
Current and deferred taxes														565,752			—			565,752			(232,075	)			333,677
Total assets														54,362,367			(261,464	)		54,100,903			3,705		(4)		54,104,608

Liabilities		17,893,540			10,543,300			19,062,619			1,028,142			48,527,601			(261,464	)		48,266,137			(884,607	)			47,381,530
Current and deferred taxes														35,231			—			35,231			—				35,231
Total liabilities														48,562,832			(261,464	)		48,301,368			(884,607	)	(5)		47,416,761

Reclassifications and adjustments to conform IFRS

(1)

The total effect of IFRS adjustments is MCh$3,558, which mainly stems from the recognition of interest income on accrual basis.

(2)

The total effect relates to IFRS adjustments of MCh$(12,940), which mainly stems from differences in the calculation model of allowances for ECL.

(3)

The total effect relates to IFRS adjustments of MCh$2,533, which stems from deferred taxes.

(4)

The total effect of IFRS adjustments in assets is MCh$3,705, which mainly stems from differences in the calculation model for ECL and deferred taxes effects.

(5)

The total effect of IFRS adjustments in liabilities is MCh$(884,607), which mainly stems from provision for minimum dividends and differences in the calculation model of allowances for ECL.

The following table presents the income, and assets and liabilities by segment as of and for the year ended December 31, 2024 for each of the segments defined above (*):

	As of December 31, 2024
	Retail Banking			Wholesale Banking			Treasury			Subsidiaries			Subtotal			Consolidation adjustments			Subtotal			Adjustments to conform IFRS			Note	Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$										MCh$
Net interest and Inflation indexation income		1,503,824			744,346			(105,115	)		(3,759	)		2,139,296			1,555			2,140,851			21,904				2,162,755
Net fee and commission income		323,785			90,343			4,376			190,192			608,696			(36,813	)		571,883			(15,575	)			556,308
Net Financial Result		15,885			47,410			160,589			52,858			276,742			(1,555	)		275,187			5,293				280,480
Other income		41,640			10,338			—			3,408			55,386			(10,074	)		45,312			6,007				51,319
Income from investments in other companies		9,291			6,385			980			396			17,052			—			17,052			(397	)			16,655
Total operating income, before expected credit losses		1,894,425			898,822			60,830			243,095			3,097,172			(46,887	)		3,050,285			17,232		(1)		3,067,517
Expected credit losses		(364,712	)		(26,033	)		(1,009	)		—			(391,754	)		—			(391,754	)		39,048		(2)		(352,706	)
Total operating income, net of expected credit losses		1,529,713			872,789			59,821			243,095			2,705,418			(46,887	)		2,658,531			56,280				2,714,811
Personnel expenses		(378,596	)		(113,623	)		(3,951	)		(86,397	)		(582,567	)		20			(582,547	)		—				(582,547	)
Administrative expenses		(336,550	)		(75,958	)		(1,938	)		(48,178	)		(462,624	)		45,928			(416,696	)		—				(416,696	)
Depreciation and amortization		(78,846	)		(7,791	)		(575	)		(7,389	)		(94,601	)		—			(94,601	)		—				(94,601	)
Impairment of non-financial assets		(1,147	)		—			—			(1,704	)		(2,851	)		—			(2,851	)		—				(2,851	)
Other operating expenses		(25,448	)		(10,058	)		(52	)		(1,420	)		(36,978	)		939			(36,039	)		—				(36,039	)
Total operating expenses		(820,587	)		(207,430	)		(6,516	)		(145,088	)		(1,179,621	)		46,887			(1,132,734	)		—				(1,132,734	)
Net operating income, before income tax		709,126			665,359			53,305			98,007			1,525,797			—			1,525,797			56,280				1,582,077
Income tax														(318,405	)		—			(318,405	)		(15,196	)	(3)		(333,601	)
Net income for the year														1,207,392			—			1,207,392			41,084				1,248,476

Assets		24,832,432			13,259,610			12,589,488			924,392			51,605,922			(227,179	)		51,378,743			194,709				51,573,452
Current and deferred taxes														716,698			—			716,698			(234,608	)			482,090
Total assets														52,322,620			(227,179	)		52,095,441			(39,899	)	(4)		52,055,542

Liabilities		18,015,015			10,790,972			17,198,350			694,984			46,699,321			(227,179	)		46,472,142			(921,794	)			45,550,348
Current and deferred taxes														298			—			298			—				298
Total liabilities														46,699,619			(227,179	)		46,472,440			(921,794	)	(5)		45,550,646

(*)

The comparative information was aligned with the new segment structure in accordance with IFRS 8.

Reclassifications and adjustments to conform IFRS

(1)

The total effect of IFRS adjustments is MCh$17,232, which mainly stems from the recognition of interest income on accrual basis.

(2)

The total effect relates to IFRS adjustments of MCh$39,048, which mainly stems from differences in the calculation model of allowances for ECL.

(3)

The total effect relates to IFRS adjustments of MCh$(15,196), which stems from deferred taxes.

(4)

The total effect of IFRS adjustments in assets is MCh$(39,899), which mainly stems from differences in the calculation model for ECL and deferred taxes effects.

(5)

The total effect of IFRS adjustments in liabilities is MCh$(921,794), which mainly stems from provision for minimum dividends and differences in the calculation model of allowances for ECL

The following table presents the income, and assets and liabilities by segment as of and for the year ended December 31, 2023 for each of the segments defined above (*):

	As of December 31, 2023
	Retail Banking			Wholesale Banking			Treasury			Subsidiaries			Subtotal			Consolidation adjustments			Subtotal			Adjustments to conform IFRS			Note	Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$										MCh$
Net interest and Inflation indexation income		1,427,085			790,083			(316,290	)		(11,162	)		1,889,716			944			1,890,660			30,132				1,920,792
Net fee and commission income		321,736			81,680			1,725			173,416			578,557			(32,627	)		545,930			(11,246	)			534,684
Net Financial Result		10,771			54,902			336,515			66,521			468,709			(944	)		467,765			1,788				469,553
Other income		54,623			24,913			—			3,400			82,936			(6,851	)		76,085			(339	)			75,746
Income from investments in other companies		9,624			3,366			342			1,100			14,432			—			14,432			(1,023	)			13,409
Total operating income, before expected credit losses		1,823,839			954,944			22,292			233,275			3,034,350			(39,478	)		2,994,872			19,312		(1)		3,014,184
Expected credit losses		(373,169	)		9,164			2,754			—			(361,251	)		—			(361,251	)		159,307		(2)		(201,944	)
Total operating income, net of expected credit losses		1,450,670			964,108			25,046			233,275			2,673,099			(39,478	)		2,633,621			178,619				2,812,240
Personnel expenses		(380,149	)		(110,822	)		(2,972	)		(88,761	)		(582,704	)		20			(582,684	)		—				(582,684	)
Administrative expenses		(326,380	)		(74,445	)		(1,866	)		(39,052	)		(441,743	)		38,488			(403,255	)		—				(403,255	)
Depreciation and amortization		(76,893	)		(8,502	)		(289	)		(6,624	)		(92,308	)		—			(92,308	)		—				(92,308	)
Impairment of non-financial assets		(1,773	)		(5	)		—			16			(1,762	)		—			(1,762	)		—				(1,762	)
Other operating expenses		(28,439	)		(6,841	)		(3	)		(1,777	)		(37,060	)		970			(36,090	)		—				(36,090	)
Total operating expenses		(813,634	)		(200,615	)		(5,130	)		(136,198	)		(1,155,577	)		39,478			(1,116,099	)		—				(1,116,099	)
Net operating income, before income tax		637,036			763,493			19,916			97,077			1,517,522			—			1,517,522			178,619				1,696,141
Income tax														(273,887	)		—			(273,887	)		(48,227	)	(3)		(322,114	)
Net income for the year														1,243,635			—			1,243,635			130,392				1,374,027

Assets		23,583,402			13,247,584			17,530,710			986,697			55,348,393			(236,853	)		55,111,540			144,901				55,256,441
Current and deferred taxes														681,012			—			681,012			(219,412	)			461,600
Total assets														56,029,405			(236,853	)		55,792,552			(74,511	)	(4)		55,718,041

Liabilities		19,123,031			10,671,254			20,219,857			777,170			50,791,312			(236,853	)		50,554,459			(919,171	)			49,635,288
Current and deferred taxes														808			—			808			—				808
Total liabilities														50,792,120			(236,853	)		50,555,267			(919,171	)	(5)		49,636,096

(*)

The comparative information was aligned with the new segment structure in accordance with IFRS 8.

Reclassifications and adjustments to conform IFRS

(1)

The total effect of IFRS adjustments is MCh$19,312, which mainly stems from the recognition of interest income on accrual basis.

(2)

The total effect relates to IFRS adjustments of MCh$159,307, which mainly stems from differences in the calculation model of allowances for ECL.

(3)

The total effect relates to IFRS adjustments of MCh$(48,227), which stems from deferred taxes.

(4)

The total effect of IFRS adjustments in assets is MCh$(74,511), which mainly stems from differences in the calculation model for ECL and deferred taxes effects.

(5)

The total effect of IFRS adjustments in liabilities is MCh$(919,171), which mainly stems from provision for minimum dividends and differences in the calculation model of allowances for ECL.