Banchile Administradora General de Fondos
Banchile Administradora General de Fondos has been in this business since 1981 and currently manages the largest number of mutual funds in the market. Its experience has given it a leadership position in asset management for companies and individuals throughout Chile.
The products available to customers include a wide range of investment options and complete advisory with respect to asset management. It currently manages 73 mutual funds and 4 investment funds that enable its customers to diversify their investments among different financial instruments, thus taking advantage of the best business opportunities in Chile and the world. With over 245,000 investors and managed funds at December 31, 2008 of more than Ch$3 billion, the equivalent of a 26.79% market share in mutual funds, this subsidiary ended 2008 as leader in the managed funds business.
In the last quarter of 2008, the effective average assets of the industry declined by 7.82%, but the subsidiary increased its market share from 25.41% in September to 26.79% at December 31. These excellent results are due to efforts focused on providing an ever-more sophisticated service, with better attention and integral consultancy.
Banchile Asesoría Financiera
Banchile Asesoría Financiera S.A. has an important presence in the Chilean investment banking business. Its main businesses are concentrated on long-term financing transactions through syndicated bank loans, purchases, sales, and mergers of companies, strategic associations and company valuations.
The subsidiary is well positioned in the Chilean capital markets thanks to its outstanding skills, experience and professionalism in the creation of innovative solutions for its clients, together with the fundamental guarantee of confidentiality with respect to transactions and the associated information. Banchile Asesoría Financiera S.A. also has wide experience in the diagnosis and successful closing of the deals in which it participates.
As an important result of the merger of Banco de Chile and Citibank, the team of Banchile Asesoría Financiera has the best professionals from both institutions and strengthened by the image Banchile Citi Global Markets in 2008, achieving excellent results under the wing of Banco de Chile’s Investment Banking and Capital Markets Division. In 2008 Banchile Asesoría Financiera produced a net income of Ch$4,743 million.
Banchile Corredores de Bolsa S.A.
Banchile Corredores de Bolsa S.A. has been operating since 1990 and offers its clients share trading on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange. Customers can also execute transactions in dollars, euros and other currencies, receiving a fast and secure service. Clients can also invest for the term that most suits them through selling securities under repurchase agreements, hence optimizing the combination of profitability, flexibility and liquidity.
Banchile Corredores de Bolsa also offers consultancy and services to companies for the placement of share and bond issues, the making of public offerings for the shares acquisition, for the placement of share blocks and the listing of companies on the stock exchange. The company also provides investment advisory services to individuals and companies.
For some years now, Banchile Corredores de Bolsa has had a successful Asset Management area. In order to restructure the business model and offer the customer an exclusive service, the area was transformed this year into Banchile Wealth Management, dedicated to the investments management of high net-worth individuals, allowing access to an integral management of their assets and savings.
The results for 2008 again placed the subsidiary among the leaders in the market. The national market share in terms of volumes traded grew from 12.64% in January to 13.91% by December 2008.
Banchile Corredores de Seguros Ltda.
Banchile Corredores de Seguros participates in the insurance brokerage market through mass networks, intermediating life and general insurance to contribute to the benefit, peace and security of its customers. The company seeks to broaden the financial services for its clients and those other mass channels, with a wide range of products, services and protection cover for both individuals and companies.
The subsidiary again showed its great dynamism and share in the insurance brokerage market in 2008, offering services, promotions and innovative products aimed and designed especially for the needs of each customer segment of the corporation’s commercial divisions.
With a prominent position in the different sales channels of Banco de Chile, the subsidiary distributes its products through account executives, service area executives, investment executives, sales force and telemarketing, etc.
Total premiums brokered amounted to UF 5 million, a 3% increase over 2007.
Banchile Factoring S.A.
Banchile Factoring is a subsidiary of Banco de Chile, created in 1999 to widen the offer of products and services to current and potential customers of the corporation.
Since its founding, the subsidiary has held an important place in the factoring business, retaining its position of market leader with a 22.4% share and a stock of advances at December 2008 of over Ch$248,000 million. In addition, there was more than Ch$255,000 million distributed through the Bank’s commercial divisions and booked in their loan portfolios.
The factoring business of both banks was combined as part of the merger of the corporation and Citibank N.A. This implied a transfer of the operations, performed smoothly, which increased the stock of advances in the consolidated business. The subsidiary also incorporated staff with great expertise, their knowledge in the commercial management of multinational companies being an important contribution to the factoring business.
The volume of business of Banchile Factoring experimented growth of 6% in the stock of the year. Taking into account the entire Bank’s commercial divisions, notable was the 20% increase in the number of customers working with factoring products, especially in the small and medium companies segments.
At the end of the year, Banchile Factoring had a portfolio of over 1,700 customers.
Banchile Securitizadora S.A.
Banchile Securitizadora, a subsidiary of Banco de Chile, offers its securitization services to large and medium companies, enabling them to increase their business volumes without having to increase working capital.
The securitized bonds service offered by the subsidiary transforms the securitized assets that are backed by low-liquidity assets which, through a structuring process, achieve a credit rating and can be traded as investments eligible for local institutional investors.
This financing option offered by the subsidiary is a useful tool for companies with securitizable assets, such as mortgage loans, credit cards, leasing contracts, car loans, accounts receivable and infrastructure projects.
Thanks to its experience and knowledge of the structuring and placement of Securitized Bonds, the subsidiary has remained among the most active securitizers in the market.
At December 2008, Banchile Securitizadora was managing 7 securitized funds valued at Ch$170,215 million.
Socofin began 2008 by assuming the collection of portfolios from Banco Citibank, Atlas and Citibank Retail Banking. A special emphasis was placed during the year on deepening its segmentation strategies according to the requirements of each portfolio.
This enabled it to meet its expected objectives, achieving a recovery of write-offs of Ch$36,542 million in the segments related to the Consumer Division and Individuals and Middle Market Companies.
Promarket is the subsidiary responsible for supporting the addition of new customers. It consolidated its work in 2008 by adding 50,060 new checking account customers through its direct intervention. In order to achieve its set targets, its work is carried out with efficiency, organization, control and team work, thus achieving an excellent working climate and a substantial improvement in results.