13International. Presence. Bci continued to enter new international markets, such as Turkey, India, Egypt, Korea and China.

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1 13International Presence Bci continued to enter new international markets, such as Turkey, India, Egypt, Korea and China.

2 B ANCO CREDITO INVERSIONES Miami Branch Mexico City Banco Internacional de Costa Rica Lima, Peru, Sao Paulo, Brazil, Banco Credicoop Coop. Ltdo., Argentina Bci Office in Banco Popular Español Hong Kong, China, Annual Report

3 International Presence In 2005, international markets were offering finance terms favorable to the growth in the world economy, the principal engines being United States of America, China, India and the rest of the Asia region. This benefited developing countries, particularly in Latin America, because of the increase in commodity prices. In this context, Bci continued to enter new international markets such as Turkey, India, Egypt, Korea and China, and to maintain its financial support to Latin American banks and enterprises. The domestic and foreign finance market remained highly competitive. Nonetheless, because of its strategy of maintaining longterm, close and quality relations with customers, Bci was ranked first in foreign currency loans among Chilean banks with a share of 21.5%. In order to service the increase in demand for financing under better terms, Bci contracted a foreign syndicated loan for US$15,000,000 that was successfully placed since 13 prestigious international banks participated, who upped the ante by US$40,000,000. In the end, Bci received funding for US$190,000,000 under excellent interest rate and fee terms. Miami Branch Fernando Capablanca Grisel Vega Assets Chief Executive Officer First Vice President and Controller Carla Alegría Vice President and Compliance Officer José Luis Belisario Vice President and IT Manager Lynda De Bayle Benford Vice President and Customer Relations Manager Roberto Gatica Vice President and Commercial Manager Palmira Ruíz Vice President and Operations Manager Thousands of Dollars Liabilities and Equity Cash Loans Deposits Financial investments Other short-term liabilities Trade account Other contingent liabilities Total current assets Total current liabilities Property, plant and equipment 368 Provisions Total property, plant and equipment 368 Total provisions Other assets Other liabilities Total non-current assets Total non-current liabilities Capital and reserves Cumulative losses (3.965) Fiscal year loss (521) Total equity Total Assets Total Liabilities The Bci Miami Branch had assets for US$681 million that grew 76%. Its liabilities include the syndicated loan for US$190 million that Bci secured and received through its branch to facilitate the relationship with lending banks. Its demand and time deposits rose 35.5% in comparison to December Loans rose 20.3%, but a large part of its funding from deposits and the aforesaid syndicated loan are transferred to the Bci head office through a trade account. By resolution of the parent Bci Board of Directors, this syndicated loan must not be used in calculating the lending position of the Miami Branch of Bci with respect to Bci Chile. The loss of the BCI Miami Branch, amounting to US$521,302, was influenced by provisions on the loan portfolio (US$745,816) and by the adjustment of new investments to the market value (US$244,144).

4 B ANCO CREDITO INVERSIONES Bci ranked first in foreing currency loans among Chilean banks in Lima, Peru Mónica Saba Representative Banco de Crédito del Peru in Sao Paulo, Brazil Andrés Von Dessauer Representative The in Peru was an active participant in the heavy growth of Bci loans in that nation because of the excellent business relations it has with Peruvian banks and prime companies in Peru, including the subsidiaries of Chilean companies doing business in that nation. Participating in foreign trade financing between Chile and Peru has enabled Bci to materialize major credit transactions for the placement of goods and services in Peru. Bci has provided shared financing to Peruvian companies in a close relationship with local banks. The has continued to provide assistance to Chilean companies doing business in Peru as well as companies that wish to enter that market since Peru is a major recipient of Chilean investment abroad. Since 1995, there has been a Cooperation Agreement between the controlling shareholders of Banco de Crédito del Peru (BCP), the leading bank in that nation, and the controlling shareholders of Banco de Crédito e Inversiones (Bci). Under that agreement, which has been in force for 10 years, the President of BCP, Dionisio Romero Seminario, is a member of the Bci Board of Directors while Mr. Luis Enrique Yarur Rey, Chairman of Bci, is a director of BCP. The agreement seeks to develop commercial activities in the Chilean and Peruvian markets, basically oriented towards doing business through local companies. The agreement also foresees coordinating the operations of the customers of any office of either of the two banks that have business relations with customers of another office. The agreement has been complemented by the exchange of technical assistance and training between both banks. This cooperation has been aimed in particular at the joint financing of prime Peruvian companies and at participation in Peruvian trade missions to Chile in order to see, firsthand, the Chilean experience under its free trade treaties and facilitate a reciprocal understanding of small and midsized businesses in both countries. The Brazilian concentrated its activities fundamentally on numerous banks in that country in order to finance, through their intermediary, the foreign trade transactions between Brazil and Chile as well as between Brazil and the rest of the world. Bci was also a party to guarantees requested by Brazilian banks to secure industrial and infrastructure projects that Brazilian suppliers are offering to develop under tenders that Chile is convening. As a result of the regular contacts of the with banks and enterprises in Brazil, Bci has become an important player among international banks participating in that country s foreign trade financing. Its special concern has been to finance the trade flows between Chile and Brazil through direct contacts with Brazilian exporters and importers. The good performance of the Brazilian economy has led to Bci s direct involvement in financing Brazil enterprises in conjunction with Brazilian banks. Bci has taken a first step toward participating in structured loans to prime companies in Brazil, together with local banks. The supports and assists Brazilian companies that wish to do business in Chile through Bci, and Chilean companies that are planning to start operations in Brazil or are already there. Annual Report

5 International Presence in Mexico City, Mexico Roberto Olivieri Representative in Hong Kong, China Francisco Soler Representative Bci Office at Banco Popular Español The in Mexico was essential in the significant financing granted by Bci to Mexican companies. Another objective of this office has been to promote foreign trade financing between Mexico and Chile and between Mexico and other countries like the United States of America, Brazil, Peru and Asia, taking advantage of the Bci s in those nations. Like what has occurred with other s, Bci Mexico provides ongoing support and assistance to Chilean companies that wish to invest and start up in Mexico, and to Mexican companies that view Chile as a business platform for their South American operations. Under the authorization of the Hong Kong Monetary Authority, Bci inaugurated a in Hong Kong, in the Popular Republic of China. Bci is the first Chilean bank with a presence in Hong Kong, and its objective is to enter the Asian market to attract foreign trade business, specially from China, with which Chile is about to sign a free trade treaty. The will coordinate trade between China and Chile and reinforce the heavy foreign trade activities seen between both countries as well as other countries in Asia. This is coupled with the fact that China has become one of the principal engines in the world economy. The cooperation agreement with Banco Popular Español, founded in 1996, included setting up a Bci office inside that bank, which became a reality in The Chilean office inside this major Spanish bank is run by Víctor Aguilar Zafora, a Bci Manager. From the beginning of this cooperation agreement, Banco Popular Español has had an office in the Bci buildings in Santiago, Chile, handled by Ramón Maeso Fernández, a manager from that Spanish bank. The principal objective of the Bci Office inside Banco Popular Español is to gain access, with the support of Banco Popular, to the parent companies of Spanish companies present in Chile, Peru, Brazil, Mexico and the United States of America in order to deepen the commercial relationship with them or attract them as clients. Obviously, having an office of Banco Popular Español in Chile and an office of Bci in Spain under this agreement--about to celebrate its tenth anniversary--facilitates the operations promoted by both banks in the respective host countries.

6 B ANCO CREDITO INVERSIONES Bci is the first Chilean bank with a presence in Hong Kong Banco Internacional de Costa Rica Banco Credicoop Coop. Ltdo., Argentina In 2002, Bci signed a cooperation agreement with Banco Internacional de Costa Rica (BICSA) for the purpose of increasing foreign trade between Chile and Costa Rica as well as promoting reciprocal investment. As a result of this agreement, there is an interesting exchange of information on customers and transactions that reinforces the business relationship between both banks. Furthermore, maintaining a fluid relationship with this bank as well as with its subsidiary offices in Central America has helped give us a better understanding of the financial market in Costa Rica and in the Region. Under this agreement, there has been an exchange of information on operating and commercial processes, emphasizing the business outlook in Central America, taking into account negotiations between the Region and the United States of America to establish a free trade treaty. In 2003, a cooperation agreement was signed with Banco Credicoop Coop Ltdo. of Argentina in order to provide services to Chilean companies entering the Argentine market and to Argentine companies setting up businesses in Chile. This has led some Transandean companies established in Chile to become Bci customers, and this relationship has been facilitated by the better understanding of companies. Additionally, the agreement seeks to increase foreign trade between Chile and Argentina and obtain a significant rise in transactions with Bci. There has been a good degree of satisfaction on the part of Chilean and Argentine customers, who have expressed their satisfaction with our service. There has been an interesting exchange of transactions and customers and there is an excellent commercial relationship and friendship between Bci and this Argentine bank. Annual Report