banco del estado de chile - bancoestado.cl · total borrowings from financial institutions 493.7...

72

FINANCIAL STATEMENTS

73

INDEX

Balance Sheets 74

Statements of Income 76

BANCO DEL ESTADO DE CHILESantiago - Chile, December 31, 2007 and 2006

Ch$ = Chilean pesos.

MCh$ = Millions of Chilean pesos.

US$ = United States dollars.

ThUS$ = Thousands of United States dollars.

MUS$ = Millions of United States dollars.

UF = Unidad de Fomento (an inflation-indexed, Chilean-peso

denominated monetary unit set daily in advance on the

basis of the previous month´s inflation rate).

Independent Auditors Report

DELOITTE&TOUCHESOCIEDADDEAUDITORESYCONSULTORESLTDA.

To the Chairman and Members of the Board of Directors of

Banco del Estado de Chile

We have audited the accompanying consolidated balance sheets of Banco del Estado de Chile and subsidiaries as of December 31, 2007 and 2006, and the related

consolidated statements of income and of cash flows for the years then ended. These financial statements (including the related notes) are the responsibility

of the Management of Banco del Estado de Chile. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Chile. Those standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made

by Management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Banco del Estado de Chile and subsidiaries

as of December 31, 2007 and 2006 and the results of their operations and cash flows for the years then ended, in conformity with accounting principles generally

accepted in Chile and the rules of the Superintendency of Bank and Financial Institutions.

Our audits also comprehended the translation of Chilean peso amounts into U.S. dollar amounts and, in our opinion, such translation has been made in

conformity with the basis stated in Note 1 to the financial statements. The translation of the financial statements amounts into US dollars and the translation

of the financial statements into english have been made solely for the convenience of readers outside Chile.

January 24, 2008

Ricardo Briggs L.

74


75

2007 2007 2006 LIABILITIESANDSHAREHOLDERS’EQUITY US$ Ch$ Ch$ (Millions) (Millions) (Millions)

LIABILITIES

DEPOSITSANDOTHERLIABILITIES:

Current accounts 4,524.8 2,2 4 8 ,3 3 5 .5 1,886,9 1 4 . 5

Saving accounts and time deposits 10, 3 5 1 .2 5 , 1 4 3 , 4 1 5.0 4,963,348. 2

Other sight and term liabilities 695.4 3 4 5 ,546.5 300,746.4

Liabilities under agreements to repurchase 1 ,329.6 660,684.3 388,929. 2

Mortgage finance loans 4,1 7 6 .8 2 ,07 5 ,407.8 2,226,059.6

Contingent liabilities 679.0 3 3 7 ,367.0 383,1 5 2 . 3

Totaldepositsandotherliabilities 21 ,756.8 10,810,756.1 10,149,150 .2

BONDS:

Bonds 1 ,022.0 5 0 7 ,8 1 2 .9 1 7 4 ,310. 3

Subordinated bonds 683.7 3 3 9 , 723.5 2 9 1 ,760. 5

Totalbonds 1 ,705.7 847 ,536.4 466,070.8

BORROWINGS FROM CENTRAL BANK AND

OTHER FINANCIAL INSTITUTIONS:

Chilean Central Bank borrowings and lines of credit

for loans renegotiations - - -

Other Central Bank borrowings - - 1 2 0 ,454.2

Loans from domestic financial institutions 9. 1 4 , 5 1 5 .0 95, 3 1 2 .0

Foreign borrowings 4 5 5 .8 226,474.2 2 9 1 ,394.4

Other borrowings 28.8 14,304.9 30,3 0 1 .9

Totalborrowingsfromfinancialinstitutions 493.7 245,294.1 5 3 7 ,462.5

FINANCIALDERIVATIVECONTRACTS 374.0 1 8 5 ,854.7 69,990.6

OTHERLIABILITIES 469.0 233 ,034.0 204,732.6

Totalliabilities 24,799.2 12,322,475.3 1 1 ,427,406.7

NET SHAREHOLDERS’ EQUITY:

Capital and reserves 1,094.5 543,838.0 492,7 0 1 .4

Other equity accounts ( 22 . 1 ) ( 10,984.8 ) ( 1 ,708.4 )

Net income for the year 106.6 52,969.0 53 ,793.4

Totalnetshareholders’equity 1 ,179.0 585,822.2 544,786.4

Totalliabilitiesandshareholders’equity 25,978.2 12,908,297.5 1 1 ,972,1 93. 1

As of December 31, 2007 and 2006

BALANCE SHEETS


2007 2007 2006 ASSETS US$ Ch$ Ch$ (Millions) (Millions) (Millions)

CASHANDDUEFROMBANKS 1,544.8 767,571.4 998,979.6

LOANS:

Commercial loans 5,867. 1 2 ,9 1 5 ,3 1 3 .8 2,676,689.3

Foreing trade loans 532.5 264,599.3 310,486.3

Consumer loans 1,776.6 8 8 2 ,785.0 798,595.6

Mortgage loans 3,931. 2 1 ,953 ,350.2 2,1 3 6 ,994.4

Lease contracts 420.0 208,708.1 149, 1 7 0 .4

Contingent loans 675.9 3 3 5 ,848.9 381 , 1 7 1 .9

Other outstanding loans 3,085. 1 1 , 532,956.4 989,1 6 7.9

Past-due loans 189.7 94,260.2 56,693.5

Totalloans 16,478. 1 8, 187 ,821.9 7,498,969.3

Less: Provisions for loans losses ( 325.0 ) ( 1 6 1 ,512.5 ) ( 1 2 5 ,410.7 )

Totalloans,net 16,153.1 8,026,309.4 7,373,558.6

OTHERLOANOPERATIONS:

Interbank loans - - 1 7 , 9 7 7.4

Investments purchased under agreements to resell 5 1 . 1 26,857.6 56, 8 2 1 .9

Totalotherloanoperations 51 .1 26,857.6 74,799.3

INSTRUMENTSFORTRADING 305.3 1 5 1 ,718.6 223,330.8

INVESTMENTINSTRUMENTS:

Available for sale 6,089.9 3,026,005.5 2 , 5 7 1 ,650.8

Held to maturity 341. 1 169,479.6 208, 5 4 1 .0

Totalinvestmentinstruments 6,431.0 3,1 9 5 ,485.1 2 ,780, 1 9 1 .8

FINANCIALDERIVATIVECONTRACTS 403.7 200,606.7 85,420.8

OTHERASSETS 732.3 363,912.0 273,077. 1

FIXEDASSETS:

Premises and equipment (net) 282.7 140,475.9 133 ,707.6

Investments in other companies 71.2 35,360.8 29, 1 2 7 .5

Totalfixedassets 353.9 175 ,836.7 162,835. 1

Totalassets 25,975.2 12,908,297.5 1 1 ,972 , 193 . 1


76


77

INDEX

Balance Sheets 78


BANCOESTADO S.A. CORREDORES DE BOLSASantiago - Chile, December 31, 2007 and 2006STATEMENTS OF INCOME


2007 2007 2006 US$ Ch$ Ch$ (Millions) (Millions) (Millions)

OPERATINGINCOME:

Interest revenue 2 , 1 8 1 . 7 1,084,082.0 790,283.0

Gain from trading activities 803.4 399,1 7 6 . 7 214, 5 1 8 .5

Income from fees and other services 1 7 1 . 5 8 5 , 209. 6 84,049.7

Foreign exchange gain (net) - - 4 ,471 .0

Other operating income 5 .2 2 ,603.6 3 , 5 1 2 . 5

Totaloperatingincome 3, 161 .8 1 ,571 ,071.9 1,096,834. 7

LESS:

Interest expenses ( 1 ,399.4 ) ( 6 95, 362. 9 ) ( 422,086.0 )

Losses from trading activities ( 7 7 1 .9 ) ( 383 , 5 4 2 . 1 ) ( 192,625.6 )

Expenses from fees and other services ( 7 5 . 1 ) ( 37, 3 3 8 . 9 ) ( 31,249.4 )

Foreign exchange loss (net) ( 5 .4 ) ( 2 , 7 03. 2 ) -

Other operating income ( 5 .2 ) ( 2,560. 7 ) ( 1 ,891 .0 )

Grossoperatingmargin 904.8 449,564. 1 448,982. 7

Personnel salaries and expenses ( 3 1 9 . 5 ) ( 1 5 8 ,7 3 6.8 ) ( 1 7 1 ,700.2 )

Administrative and other expenses ( 159 .8 ) ( 79 ,4 2 7.6 ) ( 75 ,607. 1 )

Depreciation and amortization ( 3 6 . 7 ) ( 18 ,2 4 2 .6 ) ( 1 7 ,696.6 )

Netoperatingmargin 388.8 193 ,1 5 7. 1 183,978.8

Provisions for assets at risk ( 165 .6 ) ( 8 2 , 2 7 4 . 9 ) ( 52,742.0 )

Totaloperatingincome 223.2 110 ,882.2 1 3 1 ,236.8

NON-OPERATINGINCOME:

Non-operating income 22.9 1 1 ,366. 8 6 ,765 .6

Non-operating expenses ( 1 1 .3 ) ( 5,629. 3 ) ( 25,054.9 )

Loss from foreign branches ( 0.9 ) ( 4 3 5 . 9 ) ( 456.6 )

Gain from investments in other companies 23.2 1 1 , 5 2 9 . 2 10,443. 1

Net loss from Price-level restatement ( 4 7 . 7 ) ( 23,680. 9 ) ( 6 , 5 1 1 .0 )

Incomebeforeincometaxes 209.4 104,032. 1 116,423.0

Income tax provision ( 102.8 ) ( 5 1 ,063. 1 ) ( 62,629.6 )

Netincomefortheyear 106.6 52,969.0 53,793.4









For the years ended December 31, 2007 and 2006

78


79

2007 2007 2006 ThUS$ ThCh$ ThCh$

LIABILITIESANDSHAREHOLDERS’EQUITY

CURRENT:

Obligations for purchase commitments 524,612.5 260,674,682 1 8 5 ,978,806

Obligations in securities for sales commitments - - 268,529

Obligations for other future operations 20,764.1 10,317 ,460 4,460,466

Creditors for intermediation 20,837.5 10,353,939 8 3 1 ,792

Notes and accounts payable, short term 11,912.1 5,919,001 2,883,705

Notes and accounts payable to related companies 2,146.0 1,066,326 3,469

Taxes payable 145.2 72,173 42,224

Allowances and withholdings 3,209.4 1,594,728 584,418

Totalcurrentliabilities 583,626.8 289,998,309 195,053,409

SHAREHOLDERS’EQUITY:

Paid-in capital 12,288.5 6,106,016 6,106,016

Reserves for higher value share Stock Exchange 59.2 29,393 29,393

Retained earnings 18,870.4 9,376,527 6,830,874

Net income for the year 6,579.5 3,269,272 2,545,653

Totalshareholders’equity 37,797.6 18,781,208 1 5 ,511 ,936

Totalliabilitiesandshareholders’equity 621,424.4 308,779,517 210,565,345


BALANCE SHEETSBancoEstado S.A. Corredores de Bolsa

2007 2007 2006 ASSETS ThUS$ ThCh$ ThCh$

CURRENT:

Cash and banks 6,655 .8 3,307,178 1,346,652

Equity securities owned 6,729.8 3,343,987 977,056

Fixed interest securities 28, 1 6 2 .6 13 ,993,695 9,133 ,859

Rights on purchase commitment instruments 524,790.2 260,763,003 185 ,780,275

Rights to collect on purchase commitments - - 268,672

Rights on other future operations 20,330.0 10,101,787 4,479, 1 9 5

Intermediation debtors 20,837.8 10,354,078 831 ,204

Notes and accounts receivable 8,8 8 5.8 4,415,248 1,647,332

Notes and accounts receivable from related parties 9.9 4,896 35,046

Deferred taxes 554.0 275,266 120,354

Instruments granted in guarantee 3,327. 7 1,653,517 5,356,199

Totalcurrentasssets 620,283.6 308,212,655 209,975,844

FIXEDASSETS:

Office equipment and furniture 489.7 243,327 235,774

Other fixed assets 1 3 8 .4 68,756 68,298

Accumulated depreciation ( 539. 1 ) ( 267,879 ) ( 240,436 )

Totalfixedassets(net) 89.0 44,204 63,636

OTHERASSETS:

Equity security in Stock Exchange 8 5 8 .8 426,743 419,272

Investment in related parties 2.6 1,295 1,295

Other assets 1 9 0 .4 94,620 105,298

Totalotherassets 1,051 .8 522,658 525,865

TotalAssets 621,424.4 308,779,517 210,565,345


80


81

INDEX

Balance Sheets 82


BANCOESTADO S.A. ADMINISTRADORA GENERAL DE FONDOSSantiago - Chile, December 31, 2007 and 2006









STATEMENTS OF INCOMEBancoEstado S.A. Corredores de Bolsa

2007 2007 2006 ThUS$ ThCh$ ThCh$

OPERATINGINCOME:

Commissions for stock exchange operations 1,855.7 922,055 752,234

Commisions for non-stock exchange operations 599.9 298,095 6 5 , 1 7 5

Commissions for contracts of primary placements 444.8 221,037 242,730

Income for sale of own portfolio 5,182.7 2,5 7 5 ,221 2,688,632

Income for future operations 17,671 .7 8,780,888 5,644,775

Income for interest and dividends of own portfolio 854.7 424,707 328,832

Income for administration of portfolio and custody of securities 5 9 1 .7 293,999 250,381

Other operating income 13,361 .2 6,639,030 3,226,699

Totaloperatingincome 40,562.4 20,155 ,032 13,199,458

OPERATINGEXPENSE:

Commissions and services ( 1 2 1 .4 ) ( 60,324 ) ( 47,792 )

Losses for lower value of owned portfolio ( 162. 1 ) ( 80,523 ) ( 78,318 )

Losses for sales of own portfolio ( 5,199.2 ) ( 2 ,583 ,434 ) ( 1,336,456 )

Expenses for future operations ( 19,228.8 ) ( 9,554,593 ) ( 7,236,092 )

Financial expenses ( 130.8 ) ( 64,983 ) ( 49,739 )

Administration and trade expenses ( 3,5 1 9 .9 ) ( 1,749,025 ) ( 1,454,565 )

Amortizations and depreciations ( 55.4 ) ( 27,546 ) ( 28,402 )

Other operating expenses ( 97.3 ) ( 48,338 ) ( 6,732 )

Totaloperatingexpense ( 28,514.9 ) (14,168,766 ) ( 10,238,096 )

Operatingmargin 12,047.5 5,986,266 2,961,362


Revenues on permanent investments 223.3 1 1 0 ,966 84,134

Other non-operating income 4.4 2,169 265,580

Totalnon-operatingincome 227.7 1 1 3 ,135 349,714

NON-OPERATINGEXPENSES:

Other non-operating expenses ( 2,088.5 ) ( 1,037,771 ) -

Totalnon-operatingexpenses ( 2,088.5 ) ( 1,037,771 ) -

Price-level restatement ( 2,316.3 ) ( 1 , 150,902 ) ( 268,936 )

Income before income taxes 7,870.4 3,910,728 3,042,140

Income taxes ( 1,290.9 ) ( 641,456 ) ( 496,487 )

Netincomefortheyear 6,579.5 3,269,272 2,545,653


82


83

2007 2007 2006 LIABILITIESANDSHAREHOLDERS’EQUITY ThUS$ ThCh$ ThCh$

CURRENT:

Borrowings from banks short-term 9. 1 4 ,517 5,066

Sundry creditors 30. 8 15,297 10,9 8 1

Notes and accounts payable to related companies 96.0 47,772 1 2 , 7 4 1

Allowances 356.4 1 7 7 ,082 136,485

Withholdings 88.4 43,903 24,396

Income taxes - - 2 1 , 3 1 6

Other current liabilities 44.9 22,308 -

Totalcurrentliabilities 625.6 310,879 210,985


Paid-in capital 1 , 1 9 1 .8 592,206 592,206

Retained earnings 776.4 385 ,788 290, 7 5 1

Net income for the year 748.6 3 7 1 ,892 95,037

Totalshareholders’equity 2,716.8 1,349,886 977,994

Totalliabilitiesandshareholders’equity 3,342.4 1,660,765 1 ,188,979


BALANCE SHEETSBancoEstado S.A. Administradora General de Fondos


CURRENT:

Cash and banks 3 8 1 .4 189,533 256, 3 5 7

Time deposits 843.4 419,101 455,301

Marketable securities 1,677.9 833,730 3 1 5 ,250

Trade accounts receivables 70.9 35,218 10,470

Sundry debtors 0.2 1 1 2 56

Notes and accounts receivable from related parties 39.0 19,362 28, 4 7 1

Recoverable taxes 54.9 27,264 -

Prepaid expenses 72.9 36,203 -

Deferred taxes 28.4 14,097 7 ,5 5 5

Totalcurrentassets 3,169.0 1,574,620 1,073,460

FIXEDASSETS:

Machinery and equipment 1 3 1 .3 65,262 53,842

Other fixed assets 334.6 1 6 6 ,239 1 5 1 ,027

Accumulated depreciation (less) ( 3 1 2 .9 ) ( 1 5 5 ,470 ) ( 109,590 )

Totalfixedassets 153.0 76,031 95,279

OTHERASSETS:

Intangible assets 20.4 10,1 1 4 20,240

TotalAssets 3,342.4 1,660,765 1,188,979


84


85

INDEX

Balance Sheets 86


BANCOESTADO MICROEMPRESAS S.A. ASESORÍAS FINANCIERASSantiago - Chile, December 31, 2007 and 2006









STATEMENTS OF INCOMEBancoEstado S.A. Administradora General de Fondos

2007 2007 2006 ThUS$ ThCh$ ThCh$

OPERATINGINCOME 3,999.4 1,987,278 1,314,856

Administrative and selling expenses ( 3,088.6 ) ( 1,534,6 7 1 ) ( 1,283,783 )

Grossoperatingmargin 910.8 452,607 31,073


Financial income 144.7 71 ,900 69,1 9 7

Other non-operating income - - 29,922

Other non-operating expenses ( 0.3 ) ( 140 ) ( 1,053 )

Price-level restatement ( 154.2 ) ( 76,607 ) ( 1 4 ,923 )

Non-operating(loss)income ( 9.8 ) ( 4,847 ) 83,143

INCOMEBEFOREINCOMETAXES 901.0 447,760 1 1 4 ,216

Income taxes ( 1 5 2 .4 ) ( 75,868 ) ( 19 , 179 )

Netincomefortheyear 748.6 37 1 ,892 95,037


86


87


CURRENT:

Suppliers 148.3 73,674 1 3 1 ,202

Sundry creditors 62.9 3 1 ,249 3 1 , 8 3 1

Notes and accounts payable to related companies 1 8 .4 9 , 1 4 1 67 ,4 74

Allowances 2,237 .4 1 , 1 1 1 ,799 991,622

Withholdings 1 1 2 .0 55,639 46, 9 1 1

Income taxes 55.7 27,652 -


LONGTERM:

Deferred taxes 3 7 1 .7 184,714 1 3 5 , 3 3 2


Paid-in capital 1,330.8 661 ,260 661 ,260

Share premium 49.6 24,642 24,642

Retained earnings 2,044.5 1 ,015 ,868 670,549

Net income for the year 1,639.3 814,544 345, 3 1 9

Totalshareholders’equity,net 5,064.2 2,516,314 1,701,770



BALANCE SHEETSBancoEstado Microempresas S.A. Asesorías Financieras


CURRENT:

Cash and banks 1 ,426. 1 708,615 501 ,875

Marketable securities 7 7 3 .3 384,267 640,670

Trade accounts receivable 1 .9 934 -

Sundry debtors 509. 1 252,953 1 7 9 , 3 1 9

Recoverable taxes - - 106,021

Prepaid expenses 44.8 22,261 8,006

Deferred taxes 2 8 5 . 1 1 4 1 ,647 105,573


FIXEDASSETS:

Machinery and equipment 4 3 3 .0 2 1 5 , 1 38 1 6 1 ,013

Other fixed assets 7,7 3 2 .2 3,842,039 2 ,583,419

Accumulated depreciation ( 3,2 4 5 .4 ) ( 1 ,6 1 2 ,583 ) ( 1 , 1 7 9 ,754 )

Totalfixedassets 4,919 .8 2,444,594 1,564,678

OTHERASSETS:

Other assets 1 1 0 .5 5 4 , 9 1 1 -

Totalassets 8,070.6 4,010,182 3,106,142


88


89

INDEX

Balance Sheets 90


BANCOESTADO CORREDORES DE SEGUROS S.A.Santiago - Chile, December 31, 2007 and 2006









STATEMENTS OF INCOMEBancoEstado Microempresas S.A. Asesorías Financieras

2007 2007 2006 ThUS$ ThCh$ ThCh$

Operating income 38,3 9 1 .9 19,073, 4 6 1 15,882,583

Costs of services ( 26,109.5 ) ( 12,971,454 ) ( 10,758,660 )

Grossoperatingmargin 12,282.4 6,102,007 5 ,123,923

Administrative and selling expenses ( 10,452.2 ) ( 5,193,604 ) ( 4,744,582 )

Operatingincome 1,830.2 908,403 379,341


Financial income 1 5 4 .4 76,730 1 7 ,750

Other non-operating income 23.6 12,202 957

Financial expense ( 5 .2 ) ( 2 , 5 8 5 ) ( 2,263 )

Other non-operating expense ( 62.0 ) ( 30,309 ) ( 2,936 )

Price-level restatement 75.0 3 7 , 2 9 1 1 1,661

Non-operatingincome 185.8 93,329 25,169

Income before income taxes 2,016.0 1,001, 7 3 2 404,510

Income taxes ( 376.7 ) ( 1 8 7 , 1 8 8 ) ( 59 ,191 )

Netincomefortheyear 1,639.3 814,544 345,319


90


91


OTHERLIABILITIES:

Notes payable 123.6 61,406 9 1 ,990

Accruals 1,423.3 707,242 690,626

Notes and accounts payable to related parties 25,856.0 12,847,566 1 1 , 1 9 9 ,554

DEBTWITHTHECHILEANTREASURY:

Withholdings 35.5 1 7 ,646 1 6 ,345

Income taxes 3 1 8 . 1 1 5 8 ,043 1 3 6 , 2 3 1

Value added tax 386.4 192,008 1 5 5 , 5 5 8

Totalotherliabilities 28,142.9 13,983,9 1 1 12,290,304


Paid-in capital 5 8 1 .7 289,046 289,046

Retained earnings 4,985.2 2,477,106 2,477 ,106

Net income for the year 25,856.0 12,847,566 1 1 , 199,554

Interim dividends ( 25,856.0 ) ( 12,847,566 ) ( 1 1 , 199,554 )

Totalshareholders’equity 5,566.9 2,766, 152 2,766, 152



BALANCE SHEETSBancoEstado Corredores de Seguros S.A.

2007 2007 2006 ThUS$ ThCh$ ThCh$

INVESTMENTS:

Cash and banks 1 , 1 3 8 .3 565 ,633 220,863

Time deposits 25,252.6 12,547,769 9,618 ,798

Marketable securities - - 854,284

Real estate investments and similar:

Furniture and equipment (net) 1 , 130.2 561 ,595 589,001

Other fixes assets (net) 1 0 .3 5,100 6,947

Totalinvestments 27,531 .4 13 ,680,097 11,289,893

DEBTORSFORINSURANCES:

Intermediation commissions receivable not related 5 , 1 1 7 . 2 2,542,680 1,1 5 9 ,348

Intermediation commissions receivable related 8 1 6 .7 405,805 1,467,109

Totalintermediationscommissionsreceivable 5,933.9 2,948,485 2,626,457

OTHERASSETS:

Sundry debtors (net) 89.5 44,455 38,386

Prepaid expenses 3. 1 1 ,554 888

Taxes:

Deferred taxes 1 1 9 . 1 59, 1 7 4 46, 7 5 1

Other 32.8 16,298 1,054,081

Totalotherassets 244.5 12 1 ,481 1,140,106

TotalAssets 33,709.8 16,750,063 15 ,056,456


92


93

INDEX

Balance Sheets 94


BANCOESTADO SERVICIOS DE COBRANZAS S.A.Santiago - Chile, December 31, 2007 and 2006









BancoEstado Corredores de Seguros S.A.

STATEMENTS OF INCOME

2007 2007 2006 ThUS$ ThCh$ ThCh$

REVENUEFROMSERVICES

Revenues:

Commissions from related insurance companies 1 8 ,122.4 9,004,825 7,5 0 2 ,068

Commissions from non-related insurance companies 22,750.6 1 1 ,304,532 9 , 6 2 8 ,906

Totalcommissions 40,873.0 20,309,357 17, 130 ,974

Costs of services ( 2,899.4 ) ( 1,440,688 ) ( 1 ,009,498 )

Operatingmargin 37,973.6 18,868,669 1 6 , 1 2 1 ,476

Operating expenses ( 6 , 8 7 1 .9 ) ( 3,414,559 ) ( 3 , 1 5 7 ,724 )

Operatingincome 31,101.7 15,454,110 12,963,752

NON-OPERATING INCOME:

Income:

Financial income 1,408.2 699,698 3 8 6 ,930

Other income 25. 1 1 2 ,485 1 7 0 ,045

Totalincome 1,433.3 712,183 5 56 ,975

EXPENSES:

Financial expense ( 1.0 ) ( 484 ) ( 1 ,845 )

Other - - ( 512 )

Totalexpense ( 1.0 ) ( 484 ) ( 2,357 )

Nonoperatingincome 1,432.3 7 1 1 ,699 554 ,618

Price-level restatement ( 1 ,398.4 ) ( 694,862 ) ( 3 1 ,190 )

Income before income taxes 31 , 135 .6 15,470,947 13 , 4 8 7,180

Income taxes ( 5,279.6 ) ( 2,623,3 8 1 ) ( 2 , 2 8 7 ,626 )

Netincomefortheyear 25,856.0 12,847,566 1 1 , 199 ,554


94


95


CURRENT:

Accounts payable 272.2 1 3 5 ,263 1 3 5 , 1 4 5

Allowances 1 ,017 .4 505,582 457,944

Withholdings 476.3 236,658 2 1 7 , 9 5 7

Totalcurrentliabilities 1,765.9 877,503 8 1 1 ,046

LONGTERM:

Deferred taxes 43.9 21,804 -


Paid-in capital 3,204.5 1,592,264 1,592,264

Retained earnings (Accumulated losses) 5.9 2,934 ( 5,542 )

Net income for the year 4,224.5 2,099,106 1,482,098

Totalshareholders’equity,net 7,434.9 3,694,304 3,068,820



BALANCE SHEETSBancoEstado Servicios de Cobranzas S.A.


CURRENT:

Cash and banks 544.4 270,485 509, 8 5 1

Marketable securities 5,830.5 2 ,897,100 1,962,580

Sundry debtors 494.6 245,769 1 2 8 ,386

Notes and accounts receivable from related parties 364.8 1 8 1 ,243 205, 6 1 9

Recoverable taxes 65.7 32,657 209,034

Prepaid expenses 240.4 1 1 9 ,497 4 3 ,676

Deferred taxes 61.7 30,641 40,894


FIXEDASSETS:

Facilities 447.1 222,142 2 1 9 , 3 8 7

Machinery and equipment 1,939.5 963,774 929, 1 3 6

Other fixed assets 1,.894.9 941,543 877,245

Accumulated depreciation ( 3,068.7 ) ( 1 ,524,812 ) ( 1 ,281,340 )

Totalfixedassets 1 ,212.8 602,647 744,428

OTHERASSETS:

Investment in related companies 4.8 2,367 2 ,367

Deferred taxes 1 6 , 1 6 8

Other assets 425.0 2 1 1 ,205 16 ,862

Totalotherassets 429.8 213,572 35,397

Totalassets 9,244.7 4,593,611 3,879,866


96


97

INDEX

Balance Sheets 98


SOCIEDAD DE SERVICIOS TRANSACCIONALES CAJAVECINA S.A.Santiago - Chile, December 31, 2007 and 2006









BancoEstado Servicios de Cobranzas S.A.

STATEMENTS OF INCOME

2007 2007 2006 ThUS$ ThCh$ ThCh$

Operatin income 26,788.9 13 , 3 1 1 , 156 12,025, 3 3 2

Costs of services ( 16,353 .7 ) ( 8 , 1 2 5 ,989 ) ( 7,669,625 )

Grossoperatingmargin 10,435.2 5 ,1 8 5 ,167 4,355,707

Administrative and selling expenses ( 5,266.2 ) ( 2 , 6 1 6 ,700 ) ( 2,638,329 )

Operatingincome 5,169.0 2,568,467 1 , 7 17 ,378


Financial income 274.1 1 3 6 , 1 7 3 1 1 5 , 5 8 2

Other non-operating income 0.4 190 1 7 5

Financial expense ( 2.8 ) ( 1,382 ) ( 1 ,445 )

Price-level restatement ( 328.7 ) ( 1 6 3 ,332 ) ( 37,202 )

Non-operating(loss)income ( 57.0 ) ( 28,351 ) 77, 1 10

Income before income taxes 5 , 1 1 2 .0 2,540, 1 1 6 1 ,794,488

Income taxes ( 887.5 ) ( 4 4 1 ,010 ) ( 3 1 2 ,390 )

Netincomefortheyear 4,224.5 2,099,106 1,482,098


98


99

2007 2007 LIABILITIESANDSHAREHOLDERS’EQUITY ThUS$ ThCh$

CURRENT:

Accounts payable 4 1 .2 20,457

Allowances 209.7 104,228

Withholdings 28.2 1 4 ,020

Deferred taxes 9.5 4,710

Totalcurrentliabilities 288.6 143,415


Paid-in capital 2,090.5 1,038,737

Net loss for the year ( 9 7 3 .4 ) ( 483,670 )

Totalshareholders’equity 1 ,1 1 7 .1 555,067

Totalliabilitiesandshareholders’equity 1,405.7 698,482


BALANCE SHEETSSociedad de Servicios Transaccionales CajaVecina S.A.

2007 2007 ASSETS ThUS$ ThCh$

CURRENT:

Cash and banks 75 .6 37,579

Marketable securities 8 5 8 .0 426,312

Sundry debtors 2.7 1,340

Notes and accounts receivable from related parties 80.6 40,049

Recoverable taxes 5.2 2,606

Totalcurrentassets 1,022.1 507,886

FIXEDASSETS:

Machinery and equipment 0.2 1 1 4

Accumulated depreciation - ( 16 )

Totalfixedassets 0.2 98

OTHERASSETS:

Intangible assets 1 7 4 .6 86,758

Deferred taxes 208.8 103,740

Totalotherassets 383 .4 190,498

Totalassets 1,405.7 698,482


100


101

INDEX

Balance Sheets 102


BANCOESTADO CONTACTO 24 HORAS S.A.Santiago - Chile, December 31, 2007 and 2006STATEMENTS OF INCOME

2007 2007 ThUS$ ThCh$

OPERATINGINCOME 449.8 223,483

Costs of services ( 551 .0 ) ( 273,790 )

Netoperatingmargin ( 101.2) ( 50,307 )

Administrative and selling expenses ( 1 ,004.9 ) ( 499,326 )

Netoperatingincome ( 1, 106. 1 ) ( 549,633 )


Financial income 62.9 31 ,254

Price-level restatement ( 129.5 ) ( 64,320 )

Non-operatingincome ( 66.6) ( 33,066 )

Loss before income taxes ( 1 ,172.7 ) ( 582,699 )

Income taxes 199.3 99,029

Netlossfortheyear ( 973.4) ( 483,670 )










Sociedad de Servicios Transaccionales CajaVecina S.A.

102


103


CURRENT:

Accounts payable 31.7 1 5 ,735 64, 3 4 1

Allowances 1 2 1 .0 60,053 14,432

Withholdings 1 3 6 .8 67,978 36,758


Totalcurrentliabilities 302.2 150,094 115, 531


Paid-in capital 1,440.5 7 1 5 ,783 715 ,783

Retained earnings 1 4 .0 6 ,978 6 ,853

Net income for the year 1 4 8.4 73 ,763 19, 1 6 3

Totalshareholders’equity 1,602.9 796,524 741,799

Totalliabilitiesandshareholders’equity 1,905.1 946,618 857,330

BALANCE SHEETSBancoEstado Contacto 24 Horas S.A.


CURRENT:

Cash and banks 2.0 980 74,904

Marketable securities 5 7 2 .5 284,449 163,556

Notes receivable 6.0 2,977 -

Sundry debtors 33.3 16 ,586 3,540

Accounts receivable from related parties 1 ,246.6 619,425 536,825


Deferred taxes 20.5 10,209 2 ,453

Totalcurrentassets 1,880.9 934,626 812,277

FIXEDASSETS:

Furniture and fixture 4 . 1 2,030 1 ,564

Computer equipment 1 1 .3 5,624 4 , 8 1 3

Works in progress 1 5 .3 7,586 7,586

Accumulated depreciation ( 6.5 ) ( 3,248 ) ( 1 ,323 )

Totalfixedassets 24.2 1 1 ,992 12,640

OTHERASSETS:

Organization en starting up expenses - - 32, 4 1 3

Totalotherassets - - 32,413

Totalassets 1,905. 1 946,618 857,330

As of December 31, 2007 and 2006 As of December 31, 2007 and 2006

104


105

INDEX

Balance Sheets 106


BANCOESTADO CENTRO DE SERVICIOS S.A.Santiago - Chile, December 31, 2007 and 2006









STATEMENTS OF INCOMEBancoEstado Contacto 24 Horas S.A.

2007 2007 2006 ThUS$ ThCh$ ThCh$

OPERATINGINCOME 4,853.8 2 ,411 ,801 2,045,622

Costs of services ( 4,102.5 ) ( 2,038,479 ) ( 1 ,678,308 )

Net operating margin 751 .3 373,322 367,314

Administrative and selling expenses ( 442.4 ) ( 219,845 ) ( 210,636 )

Netoperatingincome 308.9 153,477 156,678


Financial income 36.5 1 8 ,1 1 6 1 7 ,962

Other non-operating income 7.4 3,698 4 ,380

Other non-operating expenses ( 2.2 ) ( 1, 1 1 2 ) ( 8 ,882 )

Amortization of organization and starting up expenses ( 65.2 ) ( 32,413 ) ( 129,654 )

Price-level restatement ( 105.4 ) ( 52,296 ) ( 1 7 ,021 )

Non-operatingloss ( 128.9 ) ( 64,007 ) ( 133,215 )

Income before income taxes 180.0 89,470 23,463

Income taxes ( 31.6 ) ( 1 5 ,707 ) ( 4,300 )

Netincomefortheyear 148.4 73,763 19,163


106


107


CURRENT:

Bank obligations 724.3 359,885 241,298

Notes and accounts payable 662. 1 328,987 91 ,000

Notes and accounts payable to related companies 4,940.3 2,454,807 1,041,325

Accruals and withholdings 343. 1 170,483 1 1 5 ,021


Other current liabilities 0.8 4 1 3 2 1 6


LONGTERM:

Bank obligations 360.2 1 7 8 ,990 479,774

Deferred taxes 322.4 160, 1 8 9 2,249

Totallongtermliabilities 682.6 339,179 482,023


Paid-in capital 3,3 6 4 .7 1 ,671 ,901 1,671,901

Share premium 85.8 42,658 42,658

Accumulated losses ( 267.2 ) ( 1 3 2 ,784 ) ( 213 ,683 )

Net income for the year 2,504.7 1 ,244, 5 3 7 80,899

Totalshareholders’equity,net 5,688.0 2,826,3 12 1,581,775


BALANCE SHEETSBancoEstado Centro de Servicios S.A.

As of December 31, 2007 and 2006As of December 31, 2007 and 2006


CURRENT:

Cash and banks 540.5 268,554 248,449

Marketable securities 2,820.2 1,401, 3 1 3 -

Notes and accounts receivable from related parties 953.8 473,948 414,560


Prepaid expenses 112.6 55,936 23,884

Deferred taxes 32.2 1 5 , 9 8 1 12 ,379

Other current assets 4,669.8 2,320,3 9 3 1,041,325

Totalcurrentassets 9,129.1 4,536, 125 1,777,000

FIXEDASSETS:

Furniture and fixture 573.0 284, 7 4 1 247,289

Machinery and equipment 1,328.6 660, 1 5 0 515,423

Other fixed assets 3 , 6 1 1 .7 1,794,600 1,250,285

Accumulated depreciation ( 1 ,701.8 ) ( 845,591 ) ( 351,778 )

Totalfixedassets 3, 811 .5 1,893,900 1,661,219

OTHERASSETS:

Other assets 1 5 3 .9 76,494 114,439

Investment in related companies 1 . 1 557 -

Totalotherassets 155.0 77,051 114,439

TotalAssets 13,095.6 6,507,076 3,552,658

108


109

INDEX

Balance Sheets 110


BANCOESTADO NEW YORK BRANCHNew York U.S.A. / December 31, 2007 and 2006









STATEMENTS OF INCOMEBancoEstado Centro de Servicios S.A.

2007 2007 2006 ThUS$ ThCh$ ThCh$

Revenue from services 8 , 9 4 4 . 1 4 ,4 4 4,243 2,144,900

Costs of services ( 3 , 1 5 2 .5 ) ( 1 , 5 6 6 ,449 ) ( 899,5 8 8 )

Operatingmargin 5,7 9 1 .6 2 ,8 7 7 ,794 1,245, 3 1 2

Administrative and selling expenses ( 3 , 0 7 8 . 1 ) ( 1 , 5 2 9 ,457 ) ( 1 , 1 1 1 ,094 )

Operating income 2, 7 1 3 .5 1 , 348 ,337 134, 2 1 8


F inancia l income 1 2 7 .5 63 ,365 12 ,6 8 3

Non-operat ing income 87.2 43 , 3 1 3

Other non-operat ing expenses ( 0 .7 ) ( 410 ) ( 32 ,934 )

Pr ice- level restatement 56.8 28 ,238 ( 1 ,080 )

Non-operating income( loss) 270.8 1 34 ,506 ( 21 ,3 3 1 )

Income before income taxes 2,9 8 4 .3 1 , 4 8 2 ,843 1 1 2 , 8 8 7

Income taxes ( 4 7 9 .6 ) ( 2 3 8 ,306 ) ( 31 ,988 )

Net incomefor theyear 2,504.7 1 ,244,537 80,899


110


111

2006 2007 ASSETS ThUS$ ThUS$ MCh$

CASHANDDUEFROMBANKS 55,774 511 ,990 254,403

LOANS:

Commercial loans 114,690 2 1 9 , 3 7 8 109,007

Foreign trade loans 1 , 3 1 1 58 ,700 29, 1 6 7

Totalloans 116,001 278,078 138, 1 74

Allowance for loan losses ( 60 ) ( 5 1 8 ) ( 2 5 7 )

TOTALLOANS,NET 115,941 277,560 137 ,917

OTHERLOANSOPERATIONS:

Interbank loans 358,410 188 ,599 93, 7 1 3

TOTALOTHERLOANSOPERATIONS 358,410 188 ,599 93, 7 1 3

INSTRUMENTSFORTRADING:

INVESTMENTINSTRUMENTS:

Available for sale 105,344 975,007 484, 4 7 1

Held to maturity - 7 , 4 7 3 3 , 7 1 3

Totalinvestments 105,344 982,480 488,1 84

DERIVATIVECONTRACTS 810 1 , 2 7 1 6 3 1

OTHERASSETS 8 7 1 1 , 103 548

FIXEDASSETS

Fixed assets 4 1 1 2 7 1 1 3 5

Totalfixedassets 4 1 1 2 7 1 1 3 5

Totalassets 6 3 7 , 56 1 1 ,963 ,274 9 7 5 , 5 3 1

BALANCE SHEETSBancoEstado New York Branch

2006 2007 LIABILITIES AND SHAREHOLDER’S EQUITY ThUS$ ThUS$ MCh$

LIABILITIES

DEPOSITS AND OTHER LIABILITIES:

Current accounts 13, 1 3 1 10,060 4,999

Sharing accounts and time deposits 598,285 1,808,1 8 1 898,467

Other sight and term liabilities 6,352 19 ,657 9,767

Other liabilities - 1 7 , 1 5 5 8,524

Total deposits and other liabilities 6 1 7 ,768 1 ,855,053 921,757

BORROWINGSFROMCENTRALBANK

ANDOTHERFINANCIALINSTITUTIONS:

Foreign borrowings - 92,706 46,065

Total borrowings from financial institutions - 92,706 46,065

FINANCIALDERIVATIVECONTRACTS 1 ,153 2,763 1,373

OTHERLIABILITIES 1,064 408 203

TOTALLIABILITIES 619,985 1,950,930 969,398

NET SHAREHOLDER’S EQUITY:

Capital and reserves 18,236 17 ,441 8,666

Other equity accounts 1 3 5 ( 4,220 ) ( 2,097 )

Net loss for the year ( 795 ) ( 8 7 7 ) ( 436 )

Totalnetshareholder’sequity 17,576 12,344 6 , 133

Totalliabilitiesandbranchcapital 637,561 1,963,274 975 ,531

As of december 31, 2007 and 2006

As of December 31, 2007 and 2006 As of December 31, 2007 and 2006

112


STATEMENTS OF INCOMEBancoEstado New York Branch

For the years ended at December 31, 2007 and 2006

2006 2007 ThUS$ ThUS$ MCh$

OPERATINGINCOME:

Interest revenue 31,429 73,329 36,437

Gain from trading activities 1 5 - -

Foreign exchange gain (net) 1,328 966 480

Other operating income 1 1 7 706 3 5 1

TOTALOPERATINGREVENUES 32,889 75,001 37,268

LESS:

Interest expense

Losses from trading activities

Expenses from fees and other services ( 29,669 ) ( 70,466 ) ( 35,014 )

Foreign exchange loss (net) - ( 495 ) ( 245 )

Other operating income ( 56 ) ( 33 ) ( 16 )

GROSSOPERATINGMARGIN 3,164 4,007 1,993

Personnel salaries and expenses ( 2,041 ) ( 2 ,414 ) ( 1,200 )

Administrative and other expenses ( 1,640 ) ( 1 , 7 1 6 ) ( 853 )

Depreciation and amortization ( 1 4 8 ) ( 1 6 8 ) ( 84 )

NETOPERATINGMARGIN ( 665 ) ( 291 ) ( 144 )

Provisions for assets at risk ( 60 ) ( 458 ) ( 228 )

TOTALOPERATINGINCOME ( 725 ) ( 749 ) ( 372 )

INCOMEBEFOREINCOMETAXES ( 725 ) ( 749 ) ( 372 )

INCOME TAX PROVISIONS ( 70 ) ( 1 2 8 ) ( 64 )

Netincomefortheyear ( 795 ) ( 877 ) ( 436 )

banco del estado de chile - bancoestado.cl · total borrowings from financial institutions 493.7...

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