The nine subsidiaries that complement or support the Bank s business belong 100% to the Bci Financial Services Corporation.

Transcription

1 The nine subsidiaries that complement or support the Bank s business belong 100% to the Bci Financial Services Corporation.

2 The nine subsidiary companies that complement or support the Bank s business are wholly owned by the Bci Financial Services Corporation. These companies together produced a net income of Ch$9,617.6 million in 2002, an increase of 20.4% over 2001, and contributed 16.7% of the net income of the Corporation. BCI CORREDOR DE BOLSA S.A General Manager: Rodrigo Amézaga Cuevas The global securities markets in 2002 were noted for their high volatility due to an increase in perceived risk following the accounting problems in some large international companies, an increase in the possibilities of cessation of payments by other entities, fears of war and changes in the political and economic situations in Brazil and Argentina. Investment decisions became more complex and equity portfolio returns declined. This led Bci Corredor de Bolsa to concentrate on fixed-income securities and foreign currencies, with good results. Bci Corredor de Bolsa produced a net income of Ch$2,305.3 million, 27.8% higher than in 2001, and a return on equity of 29%, managing to be one of the five most profitable brokers in the sector. In terms of market share, measured in terms of trading volume on the Chilean stock markets, Bci led the fixed-income market, and in financial and currency trading, but with a lower share in equities. Jorge Farah Taré Lily Justiniano Amunátegui Rodrigo Amézaga Cuevas General Manager Bci Administradora de Fondos Mutuos S.A. General Manager Bci Corredores de Seguros S.A. General Manager Bci Corredor de Bolsa S.A. The company continued to direct its efforts to improve customer service, making an important restructuring of the organization in areas of attention like a redefinition of jobs, professional certification of executives and reorientation of the distribution channels, with emphasis on deepening the process of client segmentation to offer differentiated investment options. During 2002, the company successfully placed subordinated bonds issued by Bci, and bonds issued by Bci Securitizadora S.A. with the backing of different assets, creating a new investment option for clients and for its own portfolio. For 2003, the objective of Bci Corredor de Bolsa is to position itself as the best option in giving advice, execution and follow-up of investments in domestic and international markets, without overlooking its position in fixed-income securities and foreign currencies. ANNUAL REPORT 2002 BCI 56 57

3 BCI ADMINISTRADORA DE FONDOS MUTUOS S.A. General Manager: Jorge Farah Taré There were big changes in mutual funds performance during With the beginning of the selling of voluntary retirement savings plans, the managers reclassified their funds according to the relevant financial variables set by the authorities to bring them into line with the best international practices in this area. Some managers, including Bci Administradora de Fondos Mutuos S.A., obtained approval for creating a series of quotas in their funds, enabling them to improve the range of products with greater differentiation and suitability for different kinds of investors. Mutual funds with debt instruments have been the favorites for individuals and companies, mainly because of the returns obtained and their stability; this led to strong growth in the volumes managed. On the other hand, the deteriorated world economy led to a weak performance for the principal stock markets, causing poor results for mixed and capitalization mutual funds which, for the same reason, showed no significant asset growth. However, Bci Administradora de Fondos Mutuos S.A. managed average assets of Ch$503,113.8 million in 2002, 27.5% more than the average for 2001, while the number of investors increased to 53,170, representing an increase of 17.1%. The Banco de Chile - Banco de A. Edwards and Banco Santander - Banco Santiago mergers resulted in their respective mutual funds companies occupying first and second places in the market by size. Bci filled the third place with an 11.1% share of managed assets and 13.9% by number of investors. The company s net income amounted to Ch$2,903.1 million, an increase of 19.6% over BCI FACTORING S.A. General Manager: Germán Acevedo Campos Factoring operations in recent years have become an efficient financing option for the business sector, especially small and medium-sized businesses. Bci Factoring S.A. consolidated its leading position in this market in 2002, with transaction volumes of Ch$350,000 million, 51.1% above the average for 2001 and representing a 22.5% market share. In order to improve the process of granting financing to customers, a model called E-Factoring Bci was implemented in the last quarter of This is unique to the market and consists of providing financing to suppliers of goods and services on account of their sales invoices, using an electronic option via internet. Net income for the year amounted to Ch$2,423.2 million, 25.8% up on the year before.

4 BCI CORREDORES DE SEGUROS S.A. General Manager: Lily Justiniano Berardi Bci Corredores de Seguros S.A. occupied third place among the large broking subsidiaries of banks, with an annual volume of Ch$22,000 million of brokerage volume, placing itself behind the merged banks formed during With integral services offered through the Bci network insurance banking units, customers receive suitable advice concerning cover, protection and investment, with different and numerous insurance options. In 2002, Bci acquired the 48% shareholding of AXA Inversiones Chile Limitada in this company, thus giving it absolute control of the company with a 99% shareholding. The remaining 1% holding was acquired by Bci Asesoría Financiera S.A. For its part, Empresas Juan Yarur S.A.C., the controlling shareholder in Bci, acquired part of the shares in Bci Seguros de Vida S.A. and Bci Seguros Generales S.A. that were held by the international insurer, AXA. Bci Corredores de Seguros S.A. produced a net income of Ch$463.7 million in 2002, 3.4% less than in BCI ASESORIA FINANCIERA S.A. General Manager: Benjamín Vargas Amunátegui Among the numerous investment banking consultancy services offered by this company are the structuring of syndicated loans, corporate mergers and acquisitions, the search for strategic partners and the issue of bonds and trade paper. This support enables companies to dedicate their commercial efforts to the business opportunities that they consider most attractive. During 2002, in the face of the gradual moderation in expectations of economic growth, there appeared a demand in the first months of the year by a large number of companies to restructure the term of their liabilities in line with less optimistic cash flow projections than those that supported their original borrowing commitments. Gerardo Spoerer Hurtado Germán Acevedo Campos Benjamín Vargas Amunátegui General Manager Bci Securitizadora S.A. General Manager Bci Factoring S.A. General Manager Bci Asesoría Financiera S.A. This timely perception of market needs allowed Bci Asesoría Financiera S.A. to increase its business substantially while consolidating its leadership among companies offering financial consultancy services. The company invoiced a total of Ch$1,082.6 million, 37.3% higher than in Net income for the year amounted to Ch$ million, 55.6% up on the year before. ANNUAL REPORT 2002 BCI 58 59

5 BCI SECURITIZADORA S.A. Director: Gerardo Spoerer Hurtado This company was formed in 2001 to manage separated assets formed by loans acquired from trading or production companies, allowing them to renew their capacity to grant financing or to reduce their debts. Bci Securitizadora then issues bonds against these separated asset portfolios, which are placed on the market. During 2002, the company organized its first transactions on the local market with debt instruments issued against short-term loans originated from the financial arms of large departmental stores, acquiring the rights to the cash flows produced by holders of credit cards issued by the stores. The assets forming part of these separated portfolios were acquired under a revolving arrangement, i.e. with a periodic rotation or replacement of the credits. In the first case, bonds were issued for Ch$66,000 million. The preferential series of these instruments was classified as AAA by independent local rating agencies and also had the A1 Category rating granted by the international firm Moody s Investors Service. The second bond issue was for Ch$25,000 million whose preferential series was rated as AA by local independent rating agencies. The issues were placed in November and December 2002 respectively. In its second year of operations, the company produced a net income of Ch$275.9 million, 22.2% higher than that of the year before. COMPAÑIA DE NORMALIZACION DE CREDITOS, NORMALIZA S.A. General Manager: Galo Bertrán Rubira With objects that complement Bci s business, this company maintained its productive collection activities over the overdue and written-off portfolio of Bci s Retail Banking Division, by contacting debtors by telephone and at their addresses. Its principal objective is to normalize the overdue debtor portfolio of individuals, take actions for the judicial collection of these debtors in Chile and attempt to recover written-off debts in a post-judicial stage. The collection of insurance premiums for Bci Seguros de Vida S.A. and Bci Seguros Generales S.A. was added to its services in The company managed to achieve 85% of payment commitments by telephone contact during 2002 and 53% of collections were made at the debtor s address. The company s net income for 2002 was Ch$857 million, a 7.2% increase over Galo Bertrán Rubira Compañía de Normalización de Créditos, Normaliza S.A.

6 ANALISIS Y SERVICIOS S.A. (PROSERVICE) General Manager: Miriam Chiffelle Kirby This company continued to perform its active support role for the commercial actions of Bci s Retail Banking and TBanc through its staff of 340 whose work is to pre-evaluate the background of potential customers in Chile. During 2002 Proservice facilitated the opening of 63% of the new current accounts of Bci and the placement of mortgage loans for Ch$42,832 million and consumer loans for Ch$14,051 million. The analysis also provided for the necessary socialeconomic segmentation of customers in the pre-evaluation stage. As this is a company that provides support services for the Bank and its subsidiaries, its results are not commercial but cover its costs for the year, leaving a surplus of Ch$19.5 million. It should be explained that the balance sheet shows a loss of Ch$111.6 million as a result of the cancellation of the realestate leasing contract the company had signed with Bci s Leasing Division when this was a subsidiary of Bci, producing a difference of Ch$131.1 million between the value of the assets and that of the contract signed by Proservice. The real state involved, where the company operated, was transferred to the assets of Bci, which recorded the same difference in reverse and neutralized the difference in the consolidated balance sheet without affecting results. BCI SERVICIOS DE PERSONAL S.A. Sub Manager: Antonio Castañón Fuentes Miriam Chiffelle Kirby Antonio Castañón Fuentes General Manager Análisis y Servicios S.A. (PROSERVICE) Sub Manager Servicios de Personal S.A. This company continued to provide exclusively the service of providing staff for the Bank and its subsidiaries to facilitate operative and administrative functions. This staff works part time, mainly covering the increase in demand for banking services occurring on certain days and times of the month. The staff team is selected, recruited and trained by the subsidiary with emphasis on regulations, procedures and quality of service to customers and the public. Its has 450 employees, distributed 59% in the Metropolitan Region and 41% in other regions. The company provides for the tasks of cashiers, customer service, telephone communications, etc. in the different offices of Bci and its subsidiaries. As this is support company for the Bank and its subsidiaries, its results are not commercial, covering its costs for the annual and producing a surplus of Ch$5.6 million. ANNUAL REPORT 2002 BCI 60 61