Banco BHIF reports strong operating results for the first quarter ended March 31, 1997.

SANTIAGO, Chile--(BUSINESS WIRE)--April 21, 1997--

FIRST QUARTER 1997 HIGHLIGHTS

-- Net income for the first quarter of 1997 reached Ch$ 3,230

million, an increase of Ch$ 1,461 million, or 82.5 percent in

real terms, when compared to the same quarter of 1996, and is

primarily due to the Bank's early payment of its Central Bank

Subordinated Debt. Net of recoveries, earnings before payment

of Central Bank Subordinated Debt grew from Ch$ 664 million

in 1Q96 to Ch$ 2,627 million in 1Q97, a threefold increase.

-- Earnings per ADS for 1Q97 amounted to US$ 0.38, against the

US$ 0.21 for 1Q96 (proforma), which, once again, is due to the

early payment of the Central Bank Subordinated Debt.

-- For the past few quarters, total loan growth has been in line

with that of the industry, and the Bank has concentrated on

restructuring its portfolio towards higher profitability

products. Loan growth over the period was 11.0 percent

in real terms, a figure in line with the growth rate attained

in the past quarter. This growth concentrated on consumer

loans (66.8%) and commercial loans (26.7%), most of which are

made to small and medium-size business.

-- Net interest income increased by 14.8 percent between 1Q96 and

1Q97. The net interest margin improved over the 12 month

period, rising from 4.4 percent at the end of 1Q96 to 4.6

percent at 1Q97, being driven by increases in consumer loans

and loans to small and medium size businesses, in line with

the Bank's strategy.

-- The increase in the net interest margin and a reduction in

operating expenses enabled the Bank to bring down its

efficiency ratio from 76.8 percent in 1Q96 to 63.8

percent in 1Q97, an improvement over the already

lower 69.1 percent attained in 4Q96.

-- The coverage ratio reached 107.6 percent. The figure reflects

a decrease in the Bank's past due loans while keeping

allowances at a similar level as on 1Q96.

-- Earnings before payment of Central Bank Subordinated Debt and

related ratios appear diminished year on year because of a

one-time recovery in 1Q96 that doubled results for that

quarter. Average return on equity over the last quarter

was 17.4 percent, on an annualized basis. The figure

was also affected by the relatively high level of equity

held during the quarter, due to the capital increase in

June 1996, and of the inclusion of 1996 earnings as

reserves up until the annual stockholders meeting on

April 1st. Average return on assets reached 0.98 percent for

1Q97, down from the 1.16 percent for 1Q96, but is much

stronger in its composition since it is now almost

exclusively derived from core business.

-- All figures and comparisons are in real terms, based on

unaudited consolidated financial data. Currency is

denominated in millions of Chilean pesos as of March 31, 1997

Today BHIF (NYSE: BB, BCS: BHIF) reported its first quarter results for the period ended March 31, 1997. First quarter net income reached Ch$ 3,230 million in 1997, an increase of 82.5 percent in real terms when compared to the Ch$ 1,775 million posted for the first quarter of 1996. First quarter net interest income grew 14.8 percent in real terms when compared to 1Q96, loan growth was 11.0 percent over the same period and the coverage ratio was 107.6 percent.

Macroeconomic Environment

After the clear economic deceleration that took place during the third quarter of 1996, the last quarter of the year showed a recovery in economic activity and total expenditure, with growth rates of 7.7 percent and 9.3 percent. At year end GDP was growing at an annual rate of 7.2 percent and total expenditure was growing at 7.9 percent. The expansion observed during the last quarter of 1996 was, nevertheless, a one time phenomenon, with the effects of the economic program continuing through the first months of 1997. The monthly indicator for economic activity, IMACEC, showed 4.7 percent annualized growth for January, as compared to 9.8 percent for January 1996. The industrial sales index grew only 0.6 percent in February 1997, which the previous year had been 7.5 percent. Accumulated imports as of March 1997 decreased by 13.7 percent with respect to the figures observed for the first quarter of 1996. Finally, banking loans exhibited 10.1 percent annual growth as of March 1997, which for the same period of 1996 had been 16.6 percent.

Faced with such deceleration in expenditure, the Central Bank proceeded to lower their rate for interbank loans to 7.25 percent in February 1997, and then, again, to 7.00 percent on April 14, 1997.

Results of operations

1. Net Income

1Q97/ Net Income 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Income before income taxes 3,414 2,882 3,324 4,041 3,239 -5,1% Income taxes (25) 2 4 (10) (9)

Income before provision for CB Sub.Debt 3,389 2,883 3,328 4,031 3,230 -4,7% Provision for Central Bank Sub.Debt (1,620) 1,620 0 0 0 -100,0% Net income 1,769 4,503 3,328 4,031 3,230 82,5%

Between 1Q96 and 1Q97 net income grew Ch$ 1,461 million, a net increase of 82.5 percent, and is largely the result of the June 1996 payment of the Central Bank Subordinated Debt obligation in full. The after-tax surplus fell by 4.7 percent over the period. Comparing this income, net of recoveries to avoid the distortion caused by a one-time operation (see point 1.5), shows an increase from Ch$ 664 million to Ch$ 2,627 million, or a 296 percent increase.

On comparison with the previous quarter, most items will show a marked decrease, following the seasonal nature of many of the operations of the banking industry in Chile. A clear and increasing trend exists, from a low first quarter to a high and mighty fourth quarter.

1.1 Net interest revenue

Net 1Q97/ Interest Revenue 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Interest revenue 29,164 38,161 32,045 37,076 37,796 29,6% Interest expense (18,507) (27,698) (20,668) (24,592) (25,565) 38,1% Net Interest revenue 10,657 10,463 11,377 12,484 12,231 14,8%

Net interest revenue grew 14.8 percent from 1Q96 to 1Q97. Year on year, interest revenues grew compensating for the negative effects of reindexation, given the sustained fall in inflation over the past six years. Over the last quarter net interest revenue rose by 1.9 percent.

The rate of inflation for 1Q96 was 1.52 percent while for 1Q97 it stood at 1.66 percent. This, via reindexation, had a small but positive effect on net interest revenues, unlike on previous quarters. Revenues coming directly from interest form the basis of the growth, which underscores the success of the Bank's strategy of directing the loan structure towards more profitable operations.

Net interest margin grew from 4.4 to 4.6 percent from 1Q96 to 1Q97, a growth fundamentally due to the Bank's strategy. The resultant expansion of net interest revenue was therefore higher than the growth in average interest generating assets, which was in the order of 10 percent in real terms. From 4Q96 to 1Q97, the net interest margin fell from 4.7 percent to 4.6 percent due to the seasonal effect explained above.

1.2 Provision for loan losses

Provision for 1Q97/ loan losses 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Provision for loan losses 2,210 1,057 2,318 3,032 1,530 -30,8% Total loans 879,335 882,303 896,296 959,885 985,312 12,1% Risk index(a) 0,95% 0,94% 0,95% 0,80% 0,83% -13,2% Required allowance on loans based on risk index 8,354 8,294 8,506 7,708 8,129 -2,7% Allowance for loan losses 9,688 9,855 9,230 9,985 9,802 1,2% Allowance for loan losses as % of ttl loans 1.10% 1.12% 1.03% 1.04% 0.99% -9.7%

(a) unconsolidated data

The Bank's sustained efforts at improving the quality of the loan portfolio is yielding interesting results, particularly regarding the risk index, which fell from 0.95 percent in 1Q96 to 0.83 percent in 1Q97.

As we explained in our 4Q96 Release, a change in criteria regarding the application of provisions on smaller, non- classified past due loans, established by the Superintendencia de Bancos at the end of the year, caused the Bank to make a sizable one-time provision to increase its allowances for those loans. This unexpected interpretive change of the norms had a net effect of around Ch$ 600 million on the results and on the level of allowances, which attained Ch$9,985 million at year end. The high level of allowances thus attained made it unnecessary to continue increasing provisions at the same pace. Hence, provisions for loan losses during 1Q97 were Ch$ 680 million below the 1Q96 level.

Total allowance for loan losses at the end of 1Q97 exceeded the previous year's level by 1.2 percent. This had a favorable effect on the coverage level of past due loans, which had been only 82.1 percent in 1Q96. The 100 percent coverage level established as one of the strategic goals of the bank was easily exceeded, with the help of a decrease in past due loans, by the 107.6 percent achieved at quarter's end.

1.3 Income from services, net.

Income from 1Q97/ services, net 1Q96 2Q96 3Q96 4Q96 1Q96 1Q96

Income from services 1,390 1,404 1,198 1,582 1,514 8,9% Services expenses (597) (355) (425) (398) (355) -40,5% Income from services, net 793 1,049 773 1,184 1,159 46,1%

Net income from fees and services grew 46.1 percent over the year to 1Q97. This situation is in large part explained by the last quarter recovery in activities such as broader global use of ATM facilities, fees from credit cards, and fees from collections on insurance premiums.

Services expenses fell by 40.5 percent from 1Q96, a decrease mostly explained by a fall of close to 60 percent in commissions on placement and servicing of loans, due to a repricing of contracts with the Cajas de Compensacion (Family Allowance Administrators, see prospectus, page 59).

1.4 Other operating income, net.

Other operating 1Q97/ income, net 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Gains on financial instruments 159 87 325 465 174 9,2% Losses on financial instruments (13) (50) (27) (11) (91) 612,3% Foreign exchange transactions, net 200 184 4 (30) 665 233,1% Total other operating income, net 346 221 302 424 748 116,1%

Profits generated by changes in the value of financial instruments that the Bank held as investments were of decreasing importance within other operating income, as interest rate behavior was clear and predictable to the market. In essence, this was produced by market expectations of lower interest rates for the third consecutive quarter. For the last quarter, the key factor was the gain on foreign exchange transactions, due to favorable exchange rates. Investment volumes are moderate as a result of the institution's conservative gap management policy.

1.5 Other income and expenses

Other income and expenses 1Q96 2Q96 3Q96 4Q96 1Q97 1Q97/

1Q96

Recovery of loans previously charged off 2,725 1,178 1,929 2,395 603 -77,9% Non operating income 488 613 758 714 272 -44,3% Non-operating expenses (106) (247) (115) (187) (485) 359,2% Participation in earnings of equity inv. 22 71 14 3 (195) -969,1% Total other income and expenses 3,130 1,614 2,586 2,924 195 -93,8%

The level of recoveries of previously charged off loans is the key factor behind the other income and expenses figures. It is a consequence of both the high volume of write-offs that the Bank has been making to control the level of risk and of the volume of write-offs tied to earlier acquisitions. This level of recoveries usually follows the same seasonal pattern as other Bank figures, but during 1Q96 the pattern was distorted by a sizable one-time recovery from a corporate client, as can be easily observed in the above series.

Non operating income decreased by 44%, mostly due to lower gains on sales of assets received in lieu of payment, lower gains on sales of marketable securities and a decrease in the recovery of expenses from customers.

1.6 Operating expenses

Operating 1Q97/ expenses 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Personnel salaries and expenses (3,999) (4,247) (4,083) (4,662) (4,150) 3.8% Administrative and other expenses (4,363) (4,071) (4,419) (4,210) (4,021) -7.8% Depreciation and amortization (697) (813) (762) (860) (852) 22.1% Total operating expenses (9,059) (9,130) (9,264) (9,732) (9,022) -0.4%

The Ch$ 9,022 million in total operating expenses for 1Q97 was 0.4 percent lower than the expenses for 1Q96. The figure is heavily influenced by low growth in personnel costs and a decrease in administrative costs (7.8 percent), due to the advancement in the investment program carried out over the past two years and the application of an administrative expenses control program. This decrease is not a trend, but reflects the Bank's capacity to control expenditures and gives support to the Bank's strategy of keeping growth in operating expenses at moderate levels.

Depreciation and amortization expenses grew over 22 percent, and are a direct product of the investment program, but still represent only 9.4 percent of the total. The reduction in the Bank's administrative expenses was partly counterbalanced by an increase in personnel and administrative expenditures due to the launching of two new subsidiaries over the past 12 months, BHIF Residential Leasing and BHIF Mutual Funds.

This reduction in operating expenses resulted in a sustained improvement of the efficiency ratio, which fell from 76.8 percent to 63.8 percent over the past 12 months. Operating expenses over average total assets reached 2.75 percent, down from 3.10 percent the previous year.

2. Liquidity and funding

Liquidity and funding 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Deposits Non interest bearing

Current accounts 112,194 90,341 120,306 116,787 107,129 -4.5% Bankers drafts & other

demand dep. 73,914 98,937 105,012 102,611 117,151 58,5% Total noninterest bearing 186,108 189,278 225,317 219,399 224,279 20,5%

Interest bearing Savings accounts and

time deposits 337,307 394,823 371,346 389,420 425,855 26,3% Total Deposits 523,415 584,101 596,664 608,819 650,135 24,2%

Borrowings Central Bank

borrowings 35,333 55,126 27,918 43,584 46,264 30,9% Securities sold

under repos 43,043 39,498 40,790 46,209 51,564 19,8% Mortgage finance bonds 198,078 201,147 204,388 212,984 220,367 11,3% Other borrowings

Subordinated bonds 13,197 13,047 14,772 14,590 14,795 12,1%

Other bonds 5,448 5,375 5,466 4,373 6,449 18,4%

Borrowings from

domestic fin. instit. 34,195 31,702 39,951 46,727 60,496 76,9%

Foreign borrowings 96,073 80,699 85,493 133,652 103,477 7.7%

Other obligations 56,592 52,594 48,064 39,182 40,742 -28.0% Total borrowings 481,958 479,188 466,840 541,302 544,153 12.9% Other liabilities 69,443 58,796 81,405 69,540 63,944 -7.9%

In the context of high interest rates, that marked the Chilean financial market during 1996, the increase in the main sources of financing was concentrated among interest bearing operations. The 24.2 percent expansion of deposits was composed of a 20.5 percent increase in non-interest bearing operations and a 26.3 percent real growth in interest bearing operations such as savings accounts and term deposits. It is important to note that interest expenses grew more than income, thereby dampening the growth in NIM (see point 1.1). Interest expenses were the item most affected by high interest rates, so they will in turn benefit the most from the recent rate cut effected by the Central Bank. Sight operations and checking accounts grew at a faster pace than the Bank's core operating activities.

Borrowings grew only 12.9 percent, compensating the restrained growth of mortgage loans and of external debt with a temporary increase in low cost borrowings from domestic financial institutions. These borrowings do not include the Bank's latest placement of Subordinated Bonds, to the amount of approx. US $ 22 million, effected on April 12. This placement is intended to improve the Bank's Tier II capital base, its BIS ratios, and reduce its funding costs while improving the maturity gap profile. The Bank is also set to receive a syndicated loan from foreign banks to provide lower cost financing.

3. Interest earning assets

Interest earning 1Q97/ assets 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Financial Investments Government securities 38,436 48,544 41,792 48,311 21,633 -43.7% Instruments purchased

under repos 2,189 3,907 4,603 2,604 1,252 -42.8% Instruments collateral

under repos 40,855 37,033 36,159 43,553 50,264 23.0% Other financial

investments 21,722 26,236 22,108 25,887 28,865 32.9% Total financial investments 103,202 115,721 104,662 120,354 102,015 -1.2% Loans, net Commercial loan 311,162 321,214 340,688 378,328 394,142 26.7% Consumer loans 34,426 39,009 45,252 52,397 57,427 66.8% Mortgage loans 187,885 191,066 193,640 202,187 209,483 11.5% Foreign trade loans 140,506 130,447 129,863 135,268 123,743 -11.9% Interbank loans 23,630 35,973 6,192 7,828 22,010 -6.9% Lease contracts 34,527 35,825 36,624 36,798 36,680 6.2% Other outstanding

loans 77,382 76,646 74,277 77,132 77,610 0.3% Past due loans 11,793 10,031 10,976 9,025 9,107 -22.8% Contingent loans 58,023 42,092 58,784 60,921 55,111 -5.0% Total loans 879,335 882,303 896,296 959,885 985,312 11.0% Allowance for loan losses (9,688) (9,855) (9,230) (9,985) (9,802) 1.2% Total loans, net 869,647 872,448 887,066 949,900 975,510 12.2%

The 11.0 percent real growth returned by total loans was led by the surge in consumer loans and in commercial loans. The consumer loans growth of 66.8 percent is in line with - and a consequence of - the Bank's strategy. With this highly profitable type of operation, consumer loans have consolidated a 5.8 percent share of the portfolio, which in 1996 stood at 3.9 percent. These figures represent 57,027 consumer loan operations in 1Q96 and 78,288 operations in 1Q97. At a similar pace, the credit card stock rose from 41,528 to 53,339 over the same period.

Commercial loans grew 26.7 percent, in real terms year on year, and contain a significant shift in composition which principally reflects the greater orientation towards small and mid-size company clients. This segment offers far superior profitability than is possible from corporate banking. Leasing contracts within Banco BHIF posted 6.2 percent growth. These contracts are being targeted at small and mid-size companies and, once again, offer attractive spreads.

The search for an improvement in the average spreads of the portfolio also affected interbank loans resulting in them falling by 6.9 percent. Also, the 22.8 percent fall in past due loans improved the availability of funds for providing new loans and, additionally, reflects an indisputable improvement in the quality of the portfolio. Mortgage growth was slightly below that of the portfolio average due to the above mentioned strategy of increasing the average value of the loan with the aim of reducing unit administrative costs. The Bank is not interested in effecting low fee mortgage operations.

Following the February decrease in short term interest rates, long term interest rates also decreased, causing a temporary rise in the price of long term instruments. In anticipation of a rise in those rates - which occurred towards the end of the quarter- the Bank sold part of its long term instruments resulting in a 1.2 percent fall in its financial investments. Investments also fell from the sale of short term paper due to a decrease in technical reserve requirements owing to the higher equity level attained by the Bank albeit temporarily. The fall in the Bank's investments was partly compensated for by the increase in investments by the Bank's subsidiaries, particularly through the investment of the start-up capital of its latest subsidiary, BHIF Mutual Funds, which was launched on March 11, 1997.

4. Credit Quality

Credit Quality 1Q96 2Q96 3Q96 4Q96 1Q97 Loan classification

A 75,03 77,1 78,11 80,17 82,47

B 22,28 20,45 19,66 18,14 15,69

B- 2,26 1,89 1,64 1,08 1,22

C 0,46 0,52 0,36 0,47 0,42

D 0,02 0,05 0,23 0,14 0,19

Risk index (a) 0,95% 0,94% 0,95% 0,80% 0,83%

Past due loans/Total loans 1,34% 1,14% 1,22% 0,94% 0,92%

Allowances/Total loans 1,10% 1,12% 1,03% 1,04% 0,99%

Reserves/Past due loans 82,15% 98,24% 84,10% 110,64% 107,64%

(a) unconsolidated data

Continuing the trend developed over the previous quarters, loan quality showed substantial improvement when comparing 1Q97 with 1Q96. The risk index closed the quarter at 0.83 percent which compares favorably against the 0.95 percent at 1Q96. Additionally, loans classified as category A and B accounted for 98.2 percent of the portfolio at the end of 1Q97 while a year earlier they had represented 97.3 percent. The 0.92 percent index for past due loans contrasts sharply with the 1.34 percent noted for 1Q96 and improves over the already low 0.94 percent at 4Q96. Finally, the level of provisions constituted during the period, and the significant real decrease of past due loans yielded a coverage index of 107.6 percent which easily exceeds the 82.2 percent ratio for 1Q96, and the 100 percent target set out in the Bank's strategy.

5. Shareholders' Equity

Shareholders' Equity 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Shareholders' equity Capital 48,376 50,476 57,198 57,072 57,093 18,0% Reserves 8,457 1,848 2,277 2,485 16,122 90,6% Net income for

the period 1,769 6,272 9,600 13,631 3,230 82,5% Total shareholders' equity 58,602 58,597 69,075 73,187 76,444 30.4%

The additional capital facilitated an improvement in the major capital adequacy indicators. For instance, leverage dropped from 14.6 times to 12.8 times. At the point of incorporating the capital, in 3Q96, leverage stood at only 13.9 percent. Profitability at quarter's end reached almost 18 percent, not far from that outlined in the Bank's strategy despite the unusually low level of recoveries exhibited during 1Q97.

The equity as of March 1997 includes the full amount of its 1996 earnings as reserves, held up until the annual stockholders' meeting on April 1. After this meeting, the Bank retained only 50 percent of its 1996 earnings as capital, amounting to about US $16 million, therefore its capital and reserves decreased by Ch$ 6,705. On including these figures, profitability would have been near 20 percent as of April 1, 1997.

In addition to the capital increase effected in June 1996, and the capital increase on April 1, the Bank has just finished a Subordinated Bond placement of about US $22 million, in anticipation of the New Banking Law, now in its final stages in Congress. This bill enables the Bank to account subordinated bonds as capital, up to an amount equal to 50 percent of its equity. With this placement, the Bank will improve its BIS ratios and further reduce its leverage and its cost of funding.

Selected Financial Information

Income Statement

Consolidated Statement of Income (Unaudited)

1Q97/

1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Net Interest revenue 10,657 10,463 11,377 12,484 12,231 14,8% Provision for loan losses (2,210) (1,057) (2,318) (3,032) (1,530) -30,8% Income from services, net 793 1,049 773 1,184 1,159 46,1% Other operating income, net 346 221 302 424 748 116,1% Other income and expenses 3,130 1,614 2,586 2,924 195 -93,8% Operating expenses (9,059) (9,130) (9,264) (9,732) (9,022) 0,4% Loss from price level restatement (206) (284) (161) (257) (532) -158,4% Minority interest in consolidated subsidiaries (37) 6 29 45 (8) 78,7% Income before income taxes 3,414 2,882 3,324 4,041 3,239 -5,1% Income taxes (25) 2 4 (10) (9) 64,2% Income before provision for CB Subord. Debt 3,389 2,883 3,328 4,031 3,230 -4,7% Provision for Central Bank Subord. Debt (1,620) 1,620 0 0 0 -100,0% Net income 1,769 4,503 3,328 4,031 3,230 82,5%

Balance Sheet Summary

1Q97/ Assets 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Cash and Due from Banks 103,096 139,678 176,019 159,780 207,202 101,0%

Financial Investments 103,202 115,721 104,662 120,354 102,015 -1,2%

Loans, net 869,647 872,448 887,066 949,900 975,510 12,2%

Other assets 57,996 53,352 46,724 63,297 50,439 -13,0%

Total assets 1,133,940 1,181,198 1,214,471 1,293,331 1,335,166 17,7%

Liabilities and Shareholders' 1Q97/ Equity 1Q96 2Q96 3Q96 4Q96 1Q97 1Q96

Deposits 523,415 584,101 596,664 608,819 650,135 24,2%

Borrowings 481,958 479,188 466,840 541,302 544,153 12,9%

Other liabilities 69,443 58,796 81,405 69,540 63,944 -7,9%

Minority interest in consolidated subs 521 517 487 483 490 -6,0%

Shareholders' equity 58,602 58,597 69,075 73,187 76,444 30,4%

Total liabilities and shareholders' equity 1,133,940 1,181,198 1,214,471 1,293,331 1,335,166 17,7%

Selected ratios 1Q96 2Q96 3Q96 4Q96 1Q97

Profitability ratios

ROE 23,9% 22,0% 22,4% 27,1% 17,6% ROA 1,20% 0,98% 1,10% 1,25% 0,97% ROAE 23,6% 21,6% 21,7% 23,4% 17,4% ROAA 1,16% 1,02% 1,15% 1,27% 0,98% Net interest margins 4,4% 4,5% 4,6% 4,7% 4,6%

Earnings per share

Shares outstanding

(millions) 57,51 191,69 203,19 203,19 203,19

Net income per share

(CH$) 30,77 23,49 16,38 19,84 15,90

Net income per ADS

(CH$) 307,67 234,92 163,79 198,37 158,96

Net income per ADS

(US$) 0,74 0,57 0,39 0,48 0,38

Net income per share

(CH$)(a) 8,71 22,16 16,38 19,84 15,90

Net income per ADS

(Ch$)(a) 87,08 221,62 163,79 198,37 158,96

Net income per ADS 0,21 0,53 0,39 0,48 0,38

(US$)(a)

Leverage 14,6 16,1 13,9 15,7 12,8

Efficiency ratios

Oper, expenses

oper revenue 76,8% 77.8% 74,4% 69,1% 63,8%

Oper, expenses

avg total assets 3,10% 3,23% 3,21% 3,06% 2,75%

Credit quality ratios

Past due loans/Total

loans 1,34% 1,14% 1,22% 0,94% 0,92%

Allowances/Total loans 1,10% 1,12% 1,03% 1,04% 0,99%

Risk index 0,95% 0,94% 0,95% 0,80% 0,83%

Reserves/Past due loans 82,1% 98,2% 84,1% 110,6% 107,6%

Average balance sheet data

Average interest earning

assets 968,872 938,026 983,126 1,055,060 1,068,629

Average total

assets 1,168,492 1,129,893 1,153,087 1,270,561 1,312,171

Average shareholders

equity 57,449 53,344 61,438 68,937 74,039

Other data

Inflation rate 1,52% 2,26% 1,22% 1,48% 1,66%

Exchange rate

(Ch$/US$) 411,64 409,68 412,98 424,97 414,79

(a) pro forma

CONTACT: Camilo Morales

Planning and Development Manager

Phone: [phone] or [phone]

Fax: [phone]

e-mail: [e-mail]

or

Gustavo Villagran

Planning and Development Assistant Manager

Phone: [phone] or [phone]

e-mail: [e-mail]

or

Jane Valdez

The Anne McBride Company

Phone: [phone]

Fax: [phone]