carta presidente

I am pleased to present you with the Banco de Chile and Subsidiaries Annual Report and Financial Statements for fiscal year 2000.

This was once more a difficult period for the Banking Industry. The economic context in which it had to operate was undoubtedly less positive than was projected at the beginning of the year, and for this reason the excellent results obtained by the Bank are especially remarkable.

The Bank’s income for the year, amounting to Ch $82 billion, represents a 27.3% return on capital and reserves and exceeds by 22.1% the previous year’s income. The same as in 1999, the profitability obtained by Banco de Chile was the highest in the financial system and once again doubled the banking industry’s average profitability, which attained 12.7%.

Loans grew by a real 7.0% with respect to December 1999. Portfolio quality showed a positive evolution, with the overdue portfolio index going down from 1.21% in 1999 to 1.19% in 2000. The risky portfolio also went down from 2.13% to 2.05% during the period, positively impacting provisions and results. Financial investments grew by 8.7%, and total assets underwent a 10% increase during the 2000 fiscal year.

As regards liabilities, current account balances underwent an 11.8% increase, deposits grew by 17.4%, and subordinated bond issues went up by 31.1% during the period.

The recognized quality of the services provided has resulted in an increase in the Bank’s checking account customer base, with 32,600 new checking account customers, adding up to a total of 223,000 who, through their preference, have attested to the Bank’s outstanding position.

In spite of the good results obtained, Banco de Chile is performing a thorough review and optimization of its most relevant operating processes with the aim of continuing to improve efficiency indexes until achieving parameters similar to those exhibited by the most outstanding banks in the world.

It is important to highlight that these results would not have been possible without the efforts and professionalism of all the Institution’s staff who continue to demonstrate their strong commitment towards the goals and challenges set.

Finally, I must thank our shareholders for the support and trust deposited in us which enabled us to manage the Bank through a successful path as shown by the results obtained.


	Dear Shareholders
	I am pleased to present you with the Banco de Chile and Subsidiaries Annual Report and Financial Statements for fiscal year 2000. This was once more a difficult period for the Banking Industry. The economic context in which it had to operate was undoubtedly less positive than was projected at the beginning of the year, and for this reason the excellent results obtained by the Bank are especially remarkable. The Bank’s income for the year, amounting to Ch $82 billion, represents a 27.3% return on capital and reserves and exceeds by 22.1% the previous year’s income. The same as in 1999, the profitability obtained by Banco de Chile was the highest in the financial system and once again doubled the banking industry’s average profitability, which attained 12.7%. Loans grew by a real 7.0% with respect to December 1999. Portfolio quality showed a positive evolution, with the overdue portfolio index going down from 1.21% in 1999 to 1.19% in 2000. The risky portfolio also went down from 2.13% to 2.05% during the period, positively impacting provisions and results. Financial investments grew by 8.7%, and total assets underwent a 10% increase during the 2000 fiscal year. As regards liabilities, current account balances underwent an 11.8% increase, deposits grew by 17.4%, and subordinated bond issues went up by 31.1% during the period. The recognized quality of the services provided has resulted in an increase in the Bank’s checking account customer base, with 32,600 new checking account customers, adding up to a total of 223,000 who, through their preference, have attested to the Bank’s outstanding position. In spite of the good results obtained, Banco de Chile is performing a thorough review and optimization of its most relevant operating processes with the aim of continuing to improve efficiency indexes until achieving parameters similar to those exhibited by the most outstanding banks in the world. It is important to highlight that these results would not have been possible without the efforts and professionalism of all the Institution’s staff who continue to demonstrate their strong commitment towards the goals and challenges set. Finally, I must thank our shareholders for the support and trust deposited in us which enabled us to manage the Bank through a successful path as shown by the results obtained.