Subsidiary Companies

Performance Report
Subsidiary Companies
Subsidiary Companies
The group of companies belonging to the Bci Financial
Services and Solutions Corporation, consisting of seven
companies that complement the banking business and
two business support companies, obtained an aggregate
net income of Ch$16,258.2 million in 2004, 25.3% more
than in 2003. This represents 18.3% of the net income of
the Bci Corporation and 3% of its assets, the assets of
these subsidiaries totaling Ch$549,425.7 million at the
end of the year.
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Bci Corredor de Bolsa S.A.
General Manager:
Rodrigo Amézaga Cuevas
Business Manager:
Finance Manager:
Stock Market Manager:
Aldo Bersezio Berardi
Luis Díaz Luy
Felipe Stone Escanilla
With high market shares in its different businesses,
especially in stock broking, Bci Corredor de Bolsa recorded
commercial assets of Ch$345,227.4 million at the end of
December 2004, an increase of 85.8% over the level at
December 2003, with growth also in its number of clients.
The subsidiary performed well in the fixed-income and
financial intermediation businesses in a scenario of falling
interest rates and consumer price index trends below
initial expectations. The volume of foreign exchange trading
also increased.
Among the company's most notable activities was the
growth in its portfolio management service, specialized
in managing the financial investments of a wide range of
clients comprising public and private entities, corporations,
foundations, persons and family groups. Funds managed
at the end of the year were around US$150 million.
In a joint operation between Bci's Miami Branch and Bear
Stearns, Bci Corredor de Bolsa issued and placed new
certificates of deposit and structured notes, securities that
have a guaranteed capital and a return linked to the Nikkei
225 and Titans 50 stock price indices. It also took an
active part in the stock market opening of Cencosud S.A.,
the controller of the Jumbo retail stores, and in the sale
of shares in Sociedad Química y Minera de Chile, SQM.
Bci Corredor de Bolsa produced a net income of
Ch$4,511.0 million in 2004, representing an increase of
40.7% over the year before. Its equity is Ch$13,826.0
million.
RODRIGO AMÉZAGA CUEVAS
GENERAL MANAGER
Bci CORREDOR DE BOLSA S.A.
JORGE FARAH TARÉ
GENERAL MANAGER
Bci ADMINISTRADORA DE
FONDOS MUTUOS S.A.
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Performance Report
Subsidiary Companies
Bci Administradora de Fondos Mutuos S.A.
General Manager:
Jorge Farah Taré
Finance Manager:
Processes Manager:
Commercial Manager:
Roberto De la Carrera Prett
Ricardo Guzmán Sanza
Pedro Rojas Sepúlveda
For the fifth consecutive year, the company was
distinguished with the Salmón Prize given by the Diario
Financiero in recognition of the most profitable mutual
funds in each of the categories of managed funds.
Among the award-winning funds in the competition, which
covered some two hundred in all, the following funds
managed by Bci Administradora de Fondos Mutuos won
prizes:
• Bci Depósito Efectivo Serie Alfa, national, in the
category of short-term (90 days) fixed-income
instruments.
• Bci Competitivo Serie Alfa, international, in the category
of short-term (90 days) fixed-income instruments.
• Bci Depósito Mensual de Ahorro Serie Alfa,
international, in the category of medium and long-term
fixed-income instruments.
• Bci Tecnología Global Serie Alfa, international, in the
mixed funds category.
The company created three new funds during 2004 to
reach a total of 20 managed funds. Thee new funds are:
• Bci Negocios, for managing companies' surplus cash,
with a portfolio of fixed-income instruments with
maturities not exceeding one year, thus enabling it to
obtain a higher return than portfolios with shorter
maturities.
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• Bci Deuda Emergente, in foreign currency, in medium
and long-term fixed-income instruments of emerging
countries directed to the savings of individuals.
• Bci Capital Trust 100, the first guaranteed mutual fund
the company has placed in the market. An important
feature of this fund is that it guarantees the initial capital
to those remaining in the fund the whole three years
of the investment while adding 70% of gains from
increases in the US S & P 500 index during that period.
This fund was sold within thirty days and attracted
investments of over Ch$20,000 million.
The company continued to increase the volume of funds
managed, from Ch$679,000 million in December 2003 to
Ch$806,000 million in December 2004, an increase of
18.7%, and achieved a market share of 11.6%. The number
of subscribers increased 26.9% to 81,350.
Bci Administradora de Fondos Mutuos produced a net
income of Ch$5,007.5 million for the year, an increase of
31.6% over 2003. Its equity amounts to Ch$8,718.7 million.
Bci Factoring S.A.
General Manager:
Germán Acevedo Campos
Commercial Manager:
Operations Manager:
Administration & Finance Manager:
Rodrigo Alegría Cruz
Claudia Goycoolea Brücher
Andrés Maturana Alvarado
The net income for the year amounted to Ch$3,401.0 million,
an increase of 5.1%, and its equity amounts to Ch$9,147.9
million.
The company in early 2004 was declared a Full Member
of the Factors Chain International (FCI), the largest worldwide
factoring chain, the highest distinction granted to an
associated entity. Only three companies in Latin America
have received this distinction which is granted as a function
of the volume of business, experience and recommendations
made by other members of the chain.
Bci Factoring made a great effort during the year to offer
new products to its customers and simplify the carrying out
of its operations, mainly through the web page.
As a result, the web page of Bci factoring was modified
and adapted to meet the needs of customers in the most
friendly way, adapting information toward sales, educating
and guiding the use of this channel as a means of
communication and speeding up the operations process.
The result was a success, achieving assets of Ch$22,600
million at the end of 2004, transforming the E-Factoring
product into a secure and fast tool for suppliers of goods
and services to obtain the prompt liquidation of their accounts
receivable.
The volume of assets of Bci Factoring increased to
Ch$134,062.2 million at 31 December 2004, a rise of 37.5%
over the year before, while its market share reached 18.4%
to maintain its leading position in this business.
Under the chairmanship of the general manager of Bci
Factoring, the Chilean Factoring Companies Association,
ACHEF, took an active part in the preparation of the law
regulating the transfer of invoices and granting enforceability
in their collection through a more agile legal procedure
offering legal certainty and lower costs.
GERMÁN ACEVEDO CAMPOS
GENERAL MANAGER
Bci FACTORING S.A.
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Performance Report
Subsidiary Companies
Bci Securitizadora S.A.
Executive Director:
Gerardo Spoerer Hurtado
Sub Manager:
Juan Pablo Donoso Coqc
The company was the principal issuer among securitization
companies of bonds issued against the separate portfolios
it manages, mainly comprising consumer loans granted
by the large departmental stores.
In 2004, precisely, bond issues were structured against
loan portfolios originated by the finance companies of two
large stores. In practice, the loans acquired which are
duly selected translate into rights to the payment flows of
the users of credit cards issued by those stores.
The preferential series of both bond issues were granted
a first category credit rating. The first, for around Ch$25,000
million, was backed by loans originated by COFISA S.A.,
the holder of the rights of the payment flows of credit-card
users of the DIN store. The second amounted to Ch$16,500
million with the backing of loans originated by Inversiones
S.C.G. S.A., the holder of the rights to the payment flows
from users of the “Club Dorado” credit card of the La Polar
store.
At the end of 2004, Bci Securitizadora was managing six
separated portfolios with assets of Ch$207,688.2 million
and bonds in circulation for Ch$197,575.2 million. The
item “Inventories” in the subsidiary's balance sheet also
shows assets for securitization amounting to Ch$39,571.8
million which make up the separated portfolios numbers
7 and 8.
The company produced a net income of Ch$240.2 million
with an equity of Ch$374.3 million after distributing
dividends for Ch$400 million.
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GERARDO SPOERER HURTADO
EXECUTIVE DIRECTOR
Bci SECURITIZADORA S.A.
Bci Corredores de Seguros S.A.
General Manager:
Lily Justiniano Berardi
Commercial Manager Companies:
Jaime Court Larenas
Bci Corredores de Seguros continued to strengthen its
market position and to reaffirm its commercial objectives
based on a function of integral analysis and advice in risk
protection.
The subsidiary's effectiveness in the insurance sector
has enabled it to achieve sustained growth in its operations,
offering a wide range of services to its clients with fully
differentiating and practical benefits.
At the level of companies, where it offers cover for large
risks, an integral advice service was introduced in bankinsurance, achieving an operating growth of 18% over
2003 and selling insurance company policies that
generated annual premiums of around Ch$6,300 million.
In the individuals sector, Bci Corredores de Seguros
strengthened its position among bank subsidiary
companies in this business, especially in the placing of
automobile risk insurance cover, a product in which
competition is fierce, brokering policies that generated
annual premiums of Ch$12,500 million, an operating
growth of 23% compared to 2003.
Bci Corredores de Seguros overall brokered transactions
that generated premiums of Ch$34,600 million during
2004, an increase of 30% over 2003.
With the promulgation of the law modifying the pensions
system, the subsidiary determinedly embarked on offering
the new policies with staff trained to give pensions advice
and sell annuities, providing ease of mind and security
to clients in meeting their needs with respect to pensions.
The net income of Bci Corredores de Seguros amounted
to Ch$921.7 million, 45.3% higher than in 2003, with an
equity of Ch$156.6 million after distributing dividends for
Ch$624.7 million.
LILY JUSTINIANO BERARDI
GENERAL MANAGER
Bci CORREDORES DE SEGUROS S.A.
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Performance Report
Subsidiary Companies
Bci Asesoría Financiera S.A.
General Manager:
Benjamín Vargas Amunátegui
Business Managers:
Jorge Ballerino Astorga
Andrés Irarrázaval Ureta
Eduardo Nazal Saca
Jorge Ramírez Alegre
With a volume of operations of over US$700 million, this
subsidiary has consolidated its position to become a true
local investment bank. It concentrated its services in the
direction of syndicated loans, company debt restructuring,
mergers and acquisitions and the search for strategic
partners for certain companies.
Notable in 2004 was the strong penetration of the subsidiary's
services in the salmon industry. The many consultancy
services provided to companies in this sector enabled the
company to act as financial adviser in most of the negotiations
carried out by these entities during 2004, contributing to
the companies' acquiring a greater strength in their financial
positions and reinforcing their ownership and size.
A special mention is warranted of the syndicated loan led
and structured by Bci Asesoría Financiera for Coca Cola
Embonor S.A. This amounted to US$180 million and has a
five-year term, is unsecured and was disbursed abroad.
With its international nature, this transaction attracted
participations from eleven banks and is surely the most
important financing coordinated in Chile by a local adviser,
making Bci Asesoría Financiera a valid consultancy firm
for investment banking services.
With further growth of 14.4% compared to the previous
year, the company's net income amounted to Ch$761.9
million. Revenues amounted to Ch$1,643.2 million, a 16.7%
increase over 2003. The company's equity is Ch$699.0
million after distributing dividends for Ch$500 million.
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BENJAMÍN VARGAS AMUNÁTEGUI
GENERAL MANAGER
Bci ASESORÍA FINANCIERA S.A.
Compañía de Normalización de Créditos,
Normaliza S.A.
General Manager:
Galo Bertrán Rubira
In its sixth year in business, Normaliza continued to perform
an active role as a business-support subsidiary of Bci,
dedicated to the collection and recovery of overdue, pastdue and written-off loans of the Retail Banking Area.
Its revenues derive 95% from performance fees charged
when debtors pay the overdue obligations. The remaining
income relates to other services that the company provides
to the parent company.
In carrying out its collection functions throughout the
country, the subsidiary applies different strategies including
telephonic and postal communications, visits to domiciles,
attending to debtors wishing to restructure their obligations
and judicial requirements. As a result, more than 750,000
telephone calls and 60,000 visits to domicile were made
in 2004, and 15,500 debtors were attended to at the
payment negotiation and agreement modules. Judicial
proceedings in the individuals sector were handled by its
own legal team in the Metropolitan Region and by external
lawyers in the rest of the country.
Extending its functions, Normaliza signed a contract with
the professional institute DUOC, of the Pontificia
Universidad Católica, for providing a receivables collection
and recovery service, thus starting a collection service to
entities other than Bci
The net income of Normaliza amounted to Ch$1,393.3
million in 2004, an increase of 5.4% over 2003. It distributed
dividends for Ch$902 million against the profit for 2004.
GALO BERTRÁN RUBIRA
GENERAL MANAGER
COMPAÑÍA DE NORMALIZACIÓN DE CRÉDITOS,
NORMALIZA S.A.
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Performance Report
Subsidiary Companies
Análisis y Servicios S.A., Proservice
General Manager:
Pietro Krumpoek Rojas
Commercial Manager Regions:
Gastón Pinochet Galindo
Since its creation in 1995, the services that Análisis y
Servicios, Proservice, provides to Bci have contributed to
the attraction of 185,000 customers to the Bank, through
its financial information collection and pre-evaluation
function of persons that Bci asks it to contact and analyze.
Last year, the efforts of the subsidiary were directed to
strengthening this function through the training of the
evaluators who make the preliminary analysis of persons
the Bank is interested in attracting, in order to provide fast
responses and a good service for attending market
requirements. Following changes in the company's
organizational structure for improving efficiency, it has
obtained important synergies with Bci head office.
With a staff of 280 evaluators throughout the country,
Proservice's efforts in 2004 facilitated the opening of 51%
of Bci's new checking accounts and the granting of 19%
of new consumer and mortgage loans.
Despite being a subsidiary exclusively supporting the
operating performance of Bci, Proservice produced a net
income of Ch$20.8 million in 2004, reversing the loss of
Ch$17.5 million in 2003. Its equity amounts to Ch$22.6
million.
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PIETRO KRUMPOEK ROJAS
GENERAL MANAGER
ANÁLISIS Y SERVICIOS S.A.
Bci Servicios de Personal S.A.
Sub Manager:
Antonio Castañón Fuentes
Following five years in business, this company has
managed to maintain an effective business support
function, both for Bci and its subsidiaries, by providing
its own staff to meet their administrative and operating
needs on a part-time basis.
Working in the offices of Bci and its subsidiaries, this staff
mainly attends the extraordinary demand for banking
services by customers and the public that occurs on
certain days and times of the month, for which the staff
are selected, recruited and prepared by the subsidiary,
giving them suitable instructions on banking regulations,
action procedures and the quality of service they should
provide.
The subsidiary employs 463 staff of which 87% are
university and technical school students, who are able to
finance their studies with the remuneration they receive
for this work, and 63% are women. 55% of these people
work in the Metropolitan Region and 45% in the other
regions.
As this is a business support company, its results are not
commercial. However, it managed to cover its operating
costs in 2004 with a surplus of Ch$893,531, maintaining
an equity of Ch$46.9 million following the distribution of
a dividend for Ch$27.4 million.
ANTONIO CASTAÑÓN FUENTES
SUB MANAGER
Bci SERVICIOS DE PERSONAL S.A.
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