BANCO SANTANDER CHILE | CIK:0001027552 | 3

  • Filed: 3/28/2018
  • Entity registrant name: BANCO SANTANDER CHILE (CIK: 0001027552)
  • Generator: S2 Filings
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1027552/000095010318003835/0000950103-18-003835-index.htm
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    • ifrs-full:DisclosureOfLoansAndAdvancesToCustomersExplanatory

    NOTE 09

    LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS

     

    a)Loans and accounts receivable from customers

      

    As of December 31, 2017 and 2016, the composition of the loan portfolio is as follows:

     

     

     

    As of December 31, 2017

    		 Assets before allowances   Allowances established  

    Normal

    portfolio 

     

    Impaired

    portfolio

    		 Total   Individual allowances Group allowances Total  

    Assets

    net balance

    MCh$ MCh$ MCh$   MCh$ MCh$ MCh$   MCh$
                       
    Commercial loans                  
    Commercial loans   9,244,460 746,196 9,990,656   133,254 168,736 301,990   9,688,666
    Foreign trade loans   1,506,359 68,154 1,574,513   49,026 1,444 50,470   1,524,043
    Checking accounts debtors 179,982 15,714 195,696   2,726 11,740 14,466   181,230
    Factoring transactions 444,644 5,246 449,890   4,788 1,207 5,995   443,895
    Student loans 77,226 11,064 88,290   - 5,922 5,922   82,368
    Leasing transactions 1,335,653 121,351 1,457,004   17,529 12,793 30,322   1,426,682
    Other loans and account receivable 106,815 45,778 152,593   11,467 17,231 28,698   123,895
    Subtotal 12,895,139 1,013,503 13,908,642   218,790 219,073 437,863   13,470,779
                       
    Mortgage loans                  
    Loans with mortgage finance bonds 22,620 1,440 24,060   - 123 123   23,937
    Endorsable mortgage mutual loans   110,659 4,419 115,078   - 594 594   114,484
    Other mortgage mutual loans   8,501,072 456,685 8,957,757   - 68,349 68,349   8,889,408
    Subtotal 8,634,351 462,544 9,096,895   - 69,066 69,066   9,027,829
                       
    Consumer loans                  
    Installment consumer loans 2,613,041 297,701 2,910,742   - 240,962 240,962   2,669,780
    Credit card balances 1,341,098 23,882 1,364,980   - 33,401 33,401   1,331,579
    Leasing transactions 4,638 77 4,715   - 62 62   4,653
    Other consumer loans   271,789 5,466 277,255   - 9,331 9,331   267,924
    Subtotal 4,230,566 327,126 4,557,692   - 283,756 283,756   4,273,936
                       
    Total 25,760,056 1,803,173 27,563,229   218,790 571,895 790,685  

    26,772,544 

     

     

     

    As of December 31, 2016

     

     

     

    		 Assets before allowances   Allowances established  

    Normal

     portfolio 

     

     

    Impaired 

    portfolio

    		 Total   Individual allowances Group allowances Total  

    Assets 

    net balance 

    MCh$ MCh$ MCh$   MCh$ MCh$ MCh$   MCh$
                       
    Commercial loans                  
    Commercial loans   9,160,354 693,303 9,853,657   159,463 148,703 308,166   9,545,491
    Foreign trade loans   1,750,196 79,708 1,829,904   56,919 901 57,820   1,772,084
    Checking accounts debtors 166,073 13,395 179,468   2,794 6,854 9,648   169,820
    Factoring transactions 291,112 5,639 296,751   4,787 620 5,407   291,344
    Student loans - - -   - - -   -
    Leasing transactions 1,376,972 108,151 1,485,123   17,593 5,546 23,139   1,461,984
    Other loans and account receivable 193,589 28,973 222,562   4,780 20,482 25,262   197,300
    Subtotal 12,938,296 929,169 13,867,465   246,336 183,106 429,442   13,438,023
                       
    Mortgage loans                  
    Loans with mortgage finance bonds 31,368 1,211 32,579   - 16 16   32,563
    Endorsable mortgage mutual loans   115,400 4,534 119,934   - 190 190   119,744
    Other mortgage mutual loans   8,074,900 391,943 8,466,843   - 56,803 56,803   8,410,040
    Subtotal 8,221,668 397,688 8,619,356   - 57,009 57,009   8,562,347
                       
    Consumer loans                  
    Installment consumer loans 2,468,692 253,673 2,722,365   - 249,545 249,545   2,472,820
    Credit card balances 1,418,409 29,709 1,448,118   - 41,063 41,063   1,407,055
    Leasing transactions 5,062 55 5,117   - 72 72   5,045
    Other consumer loans   266,056 5,147 271,203   - 9,339 9,339   261,864
    Subtotal 4,158,219 288,584 4,446,803   - 300,019 300,019   4,146,784
                       
    Total 25,318,183 1,615,441 26,933,624   246,336 540,134 786,470  

    26,147,154 

     

    b)Portfolio characteristics:

     

    As of December 31, 2017 and 2016 the portfolio before allowances is as follows, by customer’s economic activity:

     

      Domestic loans (*)   Foreign interbank loans   Total loans   Distribution percentage
      As of December 31   As of December 31,   As of December 31,   As of December 31,
      2017 2016   2017 2016   2017 2016   2017 2016
      MCh$ MCh$   MCh$ MCh$   MCh$ MCh$   % %
    Commercial loans                      
    Manufacturing 1,218,232 1,180,886         1,218,232 1,180,886                4.39 4.34
    Mining 302,037 340,554   - -   302,037 340,554                1.09 1.25
    Electricity, gas, and water 336,048 442,936   - -   336,048 442,936                1.21 1.63
    Agriculture and livestock 1,114,597 1,096,659   - -   1,114,597 1,096,659                4.02 4.03
    Forest 98,941 96,806   - -   98,941 96,806                0.36 0.36
    Fishing 215,994 296,592   - -   215,994 296,592               0.78 1.09
    Transport 697,948 787,510   - -   697,948 787,510                2.52 2.89
    Communications 168,744 196,934   - -   168,744 196,934                0.61 0.72
    Construction 1,977,417 1,792,485   - -   1,977,417 1,792,485                7.13 6.59
    Commerce 3,131,870 3,120,400   - -   3,294,555 3,393,133              11.88 12.47
    Services 467,747 482,900   162,685 272,733   467,747 482,900                1.69 1.77
    Other 4,179,067 4,032,877   - -   4,179,067 4,032,877              15.07 14.84
            - -            
    Subtotal 13,908,642 13,867,539   162,685 272,733   14,071,327 14,140,272   50.75 51.98
                           
    Mortgage loans 9,096,895 8,619,356         9,096,895 8,619,356              32.81 31.68
            - -            
    Consumer loans 4,557,692 4,446,803         4,557,692 4,446,803              16.43 16.34
            - -            
    Total 27,563,229 26,933,698   162,685 272,733   27,725,914 27,206,431   100.00 100.0

     

    (*)Includes domestic interbank loans for Ch$ 0 million as of December 31, 2017 (Ch$74 million as of December 31, 2016), see Note 8.

     

    c)Impaired Portfolio

     

    i)As of December 31, 2017 and 2016, the impaired portfolio is as follows:

     

    As of December 31, 

      2017   2016
      Commercial   Mortgage   Consumer   Total   Commercial   Mortgage   Consumer   Total
      MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$
    Individual impaired portfolio 427,890   -   -   427,890   439,707   -    -    439,707
    Non-performing loans (1) (collectively evaluated) 368,522   161,768   103,171   633,461   316,838   147,572   99,721   564,131
    Other impaired portfolio 217,091   300,776   223,955   741,822   172,624   250,116   188,863   611,603
    Total 1,013,503   462,544   327,126   1,803,173   929,169   397,688   288,584   1,615,441

     

    (1) Non-performing loans include the aggregate unpaid principal and accrued but unpaid interest on all loans with at least one installment at least 90 days past-due.

     

    ii)The impaired portfolio with or without guarantee as of December 31, 2017 and 2016 is as follows:

     

     

    As of December 31,

    		  
      2017   2016
      Commercial   Mortgage   Consumer   Total   Commercial   Mortgage   Consumer   Total
      MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$
    Secured debt 582,557   413,716   34,260   1,030,533   519,821   357,320   35,134   912,275
    Unsecured debt 430,946   48,828   292,866   772,640   409,348   40,368   253,450   703,166
    Total 1,013,503   462,544   327,126   1,803,173   929,169   397,688   288,584   1,615,441

     

    iii)The portfolio of non-performing loans with or without guarantee, as of December 31, 2017 and 2016 is as follows:

     

     

    As of December 31,

      2017   2016  
      Commercial   Mortgage   Consumer   Total   Commercial   Mortgage   Consumer   Total  
      MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$   MCh$  
    Secured debt 167,909   141,413   8,896   318,218   159,965   129,632   8,940   298,537  
    Unsecured debt 200,613   20,355   94,275   315,243   156,873   17,940   90,781   265,594  
    Total 368,522   161,768   103,171   633,461   316,838   147,572   99,721   564,131  

     

    iv)The portfiolio of non-performing portfolio as of December 31, 2017 and 2016 is as follows:

     

      As of December31,
      2017   2016
      Commercial Mortgage Consumer Total   Commercial Mortgage Consumer Total
      MM$ MM$ MM$ MM$   MM$ MM$ MM$ MM$
    Non-performing >90 days 362,968 159,265 92,541 614,774   311,755 145,084 84,458 541,297
    Non-performing <90 days 5,554 2,503 10,630 18,687   5,083 2,488 15,263 22,834
    Total 368,522 161,768 103,171 633,461   316,838 147,572 99,721 564,131

     

    d)Allowances

     

    The changes in allowance balances during 2017 and 2016 are as follows:

     

    Activity during 2017

    Commercial

    loans

    Mortgage

    loans

    Consumer

    loans

    		 Total
      Individual Group Group Group
      MCh$ MCh$ MCh$ MCh$ MCh$
               
    Balance as of January 1, 2017 246,336 183,106 57,009 300,019 786,470
    Allowances established (1) 64,658 148,681 43,621 252,038 508,998
    Allowances released (2) (55,925) (20,491) (11,427) (46,089) (133,932)
    Allowances released due to charge-off (3) (36,279) (92,223) (20,137) (222,212) (370,851)
    Balances as of December 31, 2017 218,790 219,073 69,066 283,756

    790,685

     

     

    Activity during 2016

    Commercial

    loans

    Mortgage

    loans

    Consumer

    loans

    		 Total
      Individual Group Group Group
      MCh$ MCh$ MCh$ MCh$ MCh$
               
    Balance as of January 1, 2016 256,505 174,696 62,427 267,507 761,135
    Allowances established (1) 61,002 133,855 50,892 280,544 526,293
    Allowances released (2) (43,183) (14,432) (34,246) (30,790) (122,651)
    Allowances released due to charge-off (3) (27,988) (111,013) (22,064) (217,242) (378,307)
    Balances as of December 31, 2016 246,336 183,106 57,009 300,019 786,470

     

    (1)Represents gross allowances made in respect of increased risk of loss during the period and loan growth.

     

    (2)Represents the gross amount of loan loss allowances released during the year as a consequence of reduction in the level of risk existing in the loan portfolio, including as a result of improvement in the credit risk classification of borrowers and loans paid.

     

    (3)Represents the gross amount of loan loss allowances removed due to charge-off.

     

    e)Recoveries by type of loan

     

      For the years ended December 31,
      2017   2016   2015
      MCh$   MCh$   MCh$
               
    Commercial loans  32,401    27,185    26,032
    Consumer loans  39,972    41,072    35,565
    Residential mortgage loans  10,942    10,041  6,543
    Total 83,315   78,298   68,140

     

    Recoveries of loans previously charged off are recognized as income in the line item “Provision for loans losses”. We only recognize as a recovery interest and/or principal paid in cash in connection with a loan that has already been charged-off in its entirety. Such recoveries do not have an impact on our allowance for loan losses as these recoveries are for loans that have been already charged-off and recognized as a loss in our income statement and are no longer on-balance sheet.

     

    f)Allowances established on customer and interbank loans

     

    The following chart shows the balance of allowances established, associated with credits granted to customers and banks:

     

      As of December 31,
                 2017   2016   2015
                MCh$   MCh$   MCh$
               
    Customers loans 508,998   526,293   545,056
    Interbank loans 307   3,052   1,357
    Total 509,305  

    529,345

    		   546,413

     

    g)Portfolio by its impaired and non-impaired status.

     

      As of December 31, 2017
      Non-impaired Impaired Portfolio total
      Commercial Mortgage Consumer

    Total non

    impaired

     

    		 Commercial Mortgage Consumer

    Total 

    impaired

     

    		 Commercial Mortgage Consumer

    Total 

    portfolio

     

      MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
                             
    Current portfolio 12,737,508 8,357,733 4,012,489 25,107,730 449,895 158,770 110,184 718,849 13,187,403 8,516,503 4,122,673 25,826,579
    Overdue for 1-29 days 103,908 180,294 132,136 416,338 110,834 74,072 46,283 231,189 214,742 254,366 178,419 647,527
    Overdue for 30-89 days 53,723 96,324 85,941 235,988 89,806 70,437 78,118 238,361 143,529 166,761 164,059 474,349
    Overdue for 90 days or more -  - - - 362,968 159,265 92,541 614,774 362,968 159,265 92,541 614,774
                             
    Total portfolio before allowances 12,895,139 8,634,351 4,230,566 25,760,056 1,013,503 462,544 327,126 1,803,173 13,908,642 9,096,895 4,557,692 27,563,229
                             
    Overdue loans (less than 90 days) presented as portfolio percentage 1.22% 3.20% 5.15% 2.53% 19.80% 31.24% 38.03% 26.04% 2.58% 4.63% 7.51% 4.07%
                             
    Overdue loans (90 days or more) presented as portfolio percentage. - - - - 35.81% 34.43% 28.29% 34.09% 2.61% 1.75% 2.03% 2.23%

     

      As of December 31, 2016
      Non-impaired Impaired Portfolio total
      Commercial Mortgage Consumer

    Total non 

    impaired

     

    		 Commercial Mortgage Consumer

    Total

    impaired

     

    		 Commercial Mortgage Consumer

    Total

    portfolio

     

      MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$
                             
    Current portfolio 12,765,961 7,944,260 3,957,566 24,667,787 463,176 133,816 100,670 697,662 13,229,137 8,078,076 4,058,236 25,365,449
    Overdue for 1-29 days 97,302 69,227 113,031 279,560 35,777 12,984 32,536 81,297 133,079 82,211 145,567 360,857
    Overdue for 30-89 days 75,033 208,181 87,622 370,836 118,461 105,804 70,920 295,185 193,494 313,985 158,542 666,021
    Overdue for 90 days or more -  - - - 311,755 145,084 84,458 541,297 311,755 145,084 84,458 541,297
                             
    Total portfolio before allowances 12,938,296 8,221,668 4,158,219 25,318,183 929,169 397,688 288,584 1,615,441 13,867,465 8,619,356 4,446,803 26,933,624
                             
    Overdue loans (less than 90 days) presented as portfolio percentage 1.33% 3.37% 4.83% 2.57% 16.60% 29.87% 35.85% 23.31% 2.35% 4.60% 6.84% 3.81%
                             
    Overdue loans (90 days or more) presented as portfolio percentage. - - - - 33.55% 36.48% 29.27% 33.51% 2.25% 1.68% 1.90% 2.01%

     

    Reconciliation of overdue loans with non-performing loans

     

      As of December 31, 2017
      Commercial   Mortgage   Consumer   Total
      MCh$   MCh$   MCh$    
                   
    Overdue loans  362,968    159,265    92,541    614,774
    Loans with not overdue but classified as non-performing loans  5,554    2,503    10,630    18,687
    Total  368,522    161,768   103,171   633,461

     

      As of December 31, 2016
      Commercial   Mortgage   Consumer   Total
      MCh$   MCh$   MCh$    
                   
    Overdue loans  311,755    145,084    84,458    541,297
    Loans with not overdue but classified as non-performing loans  5,083    2,488    15,263    22,834

    Total

    		  316,838    147,572    99,721  

    564,131