BancoEstado undertakings associated with capital increase

  1. Smaller companies

    Increase of 100% (15,000) in the small businesses (annual sales of 2,400-40,000 UF) and of 50,000 in the micro-firms (annual sales of less than 2,400 UF) to which it provides financing:

    Increase of at least 862,500 million Chilean pesos (US$1,500 million at US$1=575 pesos) in its volume of lending to smaller companies (micro, small and mid-sized segments) over a period of four years. The growth of lending to this segment has to be gradual in order to maintain the risk of this portfolio at levels consistent with the sustainability of the business.

  2. Maintain robust support for mortgage borrowing

    To continue to be the main provider of residential mortgages for lower-income segments of the population. To award at least the equivalent of 28,000,000 UF (US$1,200 million) in new mortgages in 2015-2016, with a focus on housing with a value below the limit of the housing subsidy policy (2,000 UF).

  3. Increase financial inclusion in lower-income segments

    BancoEstado has been the principal vehicle of financial inclusion for lower-income segments of the population and will continue to develop products and services that facilitate access to financial services and foster their effective use at a reasonable cost. Its targets as regards financial inclusion are:

    1. Reach 9 million CuentaRUT accounts by end-2016 (7,500,000 in 2015).
    2. Reach 16,000 CajaVecina points of service (14,500 at end-2015).
    3. Open at least 15 new branch offices in 2015, including at least 10 in small towns.
    4. In 2015-2016, implement the investments necessary to provide a reasonable guarantee of the Bank’s operational continuity, taking into account its increasing role as a mass bank.
  4. Strengthen support for women entrepreneurs

    Through its Microempresas subsidiary, BancoEstado will develop the “Women Entrepreneurs’ Bank”. In 2015, a specialized platform for this segment will be implemented.

  5. Maintain a pre-tax profitability similar to current levels

    BancoEstado will seek to expand its operations without increasing its financing cost or significantly increasing its expenditure on risk and, therefore, negatively affecting its profitability. Its pre-tax ROE is expected to be similar to its current level (17-18%).