Banco de Chile - 20-F annual report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 20-F

☐REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

For the transition period from                         to                            

Commission file number 001-15266

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

Shares of common stock: 101,017,081,114

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☒ No

Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

TABLE OF CONTENTS

SUMMARY OF RISK FACTORS

An investment in our American Depositary Shares (“ADSs”) is subject to a number of risks, including risks relating to the nature of our business as a financial institution in Chile. The following list summarizes some, but not all, of these risks. Please read the information in the section entitled “Risk Factors” for a more thorough description of these and other risks.

Risks Relating to our Operations and the Chilean Banking Industry

Risks Relating to Chile

Risks Relating to our American Depositary Shares (“ADSs”)

FORWARD-LOOKING STATEMENTS

This annual report on Form 20-F contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we have based these forward-looking statements on our expectations and projections about future events, it is possible that actual results may differ materially from our expectations. In many cases, we include a discussion of the factors that are most likely to cause forward-looking statements to differ from actual results together with the forward-looking statements themselves. These statements appear throughout this annual report, including, without limitation, under “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects.” Examples of such forward-looking statements include:

Words such as “believe,” “anticipate,” “plan,” “aims,” “seeks,” “expect,” “intend,” “target,” “objective,” “estimate,” “project,” “potential,” “predict,” “forecast,” “guideline,” “could,” “may,” “will,” “should” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These statements may relate to (i) our asset growth and financing plans, (ii) trends affecting our financial condition or results of operations and (iii) the impact of competition and regulations but are not limited to such topics. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described in such forward-looking statements included in this annual report as a result of various factors (including, without limitation, the actions of competitors, future global economic conditions, market conditions, foreign exchange rates and operating and financial risks), many of which are beyond our control. The occurrence of any such factors not currently expected by us could significantly alter the results set forth in these statements.

Factors that could cause actual results to differ materially and adversely include, but are not limited to:

You should not place undue reliance on forward-looking statements, which speak only as of the date that they were made. This cautionary statement should be considered in connection with any written or oral forward-looking statements that we may issue in the future. We do not undertake any obligation to publicly release any revisions to such forward-looking statements after the filing of this annual report to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

PRESENTATION OF FINANCIAL INFORMATION

We prepare our audited consolidated financial statements in Chilean pesos and in accordance with International Financial Reporting Standards (“IFRS”) Accounting Standards as issued by the International Accounting Standards Board (“IASB”).

Unless otherwise indicated, the financial information included in this annual report with respect to 2023, 2024 and 2025 has been derived from financial statements that have been prepared in accordance with IFRS Accounting Standards. See Note 2(a) to our audited consolidated financial statements as of and for the year ended December 31, 2025, included elsewhere in this annual report. IFRS Accounting Standards differs in certain significant respects from Chilean Generally Accepted Accounting Principles (the “Chilean GAAP”) as issued by the Comisión para el Mercado Financiero(“Financial Market Commission” or “CMF”). As a result, our financial information presented under IFRS Accounting Standards is not directly comparable to any of our financial information presented under Chilean GAAP, and readers should avoid such comparison. Readers should also note that information in this document associated with our business segments and for the calculation and compliance with local regulatory requirements is based on Chilean GAAP.

In this annual report, references to “$,” “U.S.$,” “U.S. dollars” and “dollars” are to United States dollars, references to “pesos” or “Ch$” are to Chilean pesos (see Note 2(f) to our audited consolidated financial statements as of and for the year ended December 31, 2025, included elsewhere in this annual report), and references to “UF” are to “Unidades de Fomento.” The UF is an inflation indexed Chilean monetary unit of account with a value in Chilean pesos that is linked to and adjusted daily to reflect changes in the Consumer Price Index (“CPI”) of the Instituto Nacional de Estadísticas(the “Chilean National Statistics Institute”). As of December 31, 2025, one UF equaled Ch$39,727.96.

This annual report contains translations of certain Chilean peso amounts into U.S. dollars at specified rates. These translations should not be construed as representations that the Chilean peso amounts actually represent such U.S. dollar amounts, were converted from U.S. dollars at the rate indicated in our audited consolidated financial statements as of and for the year ended December 31, 2025, or could be converted into U.S. dollars at the rate indicated. Banco de Chile utilizes the exchange rate of accounting representation, or spot exchange rate, for such matters. Thus, unless otherwise indicated, the U.S. dollar amounts have been translated from Chilean pesos based on the exchange rate of accounting representation as of December 30, 2025 (last trading date), as determined by our Treasury on a daily basis, based on the average of the daily closing bid and offer rates reported by Bloomberg for the Santiago Stock Exchange. As of December 31, 2025, the exchange rate of accounting representation was Ch$900.40 = U.S.$1.00, and the observed exchange rate, as published by Banco Central de Chile (the “Central Bank”), was Ch$911.18 = U.S.$1.00.

Unless otherwise specified, all references in this annual report to total loans are to loans to customers before deducting allowances for loan losses, and they do not include loans to banks or contingent loans. Also, in this annual report, “past-due loans” are any loans for which the counterparty has failed to make a payment when contractually due, including installments that are overdue, plus the remaining balance of principal and interest on such loans. In order to distinguish between different overdue time periods, the corresponding time period is included after the term “Past-due Loans” (for example, “Past-due Loans—90 days or more”). For more information, please see “Item 4. Information on the Company—Selected Statistical Information—Analysis of Substandard and Past-Due Loans.”

According to Chilean regulations and as defined by the CMF for local regulatory purposes, as of the filing date and for the purposes of this annual report, total regulatory capital (“Total Regulatory Capital”) consists of:

These definitions for Total Regulatory Capital took effect on December 1, 2021. For more information, see “Item 4. Information on the Company—Regulation and Supervision—Modifications to the General Banking Act.”

EFFECT OF ROUNDING

Certain figures included in this annual report and in our audited consolidated financial statements as of and for the year ended December 31, 2025, have been rounded for ease of presentation. Percentage figures included in this annual report have not in all cases been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this annual report may vary slightly from those obtained by performing the same calculations using the figures in our audited consolidated financial statements as of and for the year ended December 31, 2025. Certain other amounts that appear in this annual report may similarly not sum due to rounding.

MACRO-ECONOMIC AND MARKET DATA

In this annual report, most of the macro-economic data relating to the Chilean economy is based on information published by the Central Bank, except for (i) inflation statistics that are based on data published by the Chilean National Institute of Statistics, and (ii) certain other information based on data published by other sources as stated herein.

In addition, most of the market share data, financial indicators and other data relating to the Chilean banking system as compared to Banco de Chile’s financial information presented in this annual report are based on information published periodically by the CMF, which is published under Chilean GAAP and prepared on a consolidated basis, unless otherwise indicated. For more information see “Item 4. Information on the Company—Business Overview—Competition.” Information regarding the mutual funds industry is based on statistics published by the National Association of Mutual Funds.

MANAGEMENT INFORMATION SYSTEM

Banco de Chile records information associated with the normal course of the business in order to measure performance and carry out business analysis, among other activities. This information includes the number and the financial amount of transactions executed through diverse commercial platforms by the Bank or its customers or counterparties. All this information is referred to as the Bank’s “Management Information System” throughout the document.

Part I

Item 1 Identity of Directors, Senior Management and Advisers

Not Applicable.

Item 2 Offer Statistics and Expected Timetable

Not Applicable.

Item 3 Key Information

RISK FACTORS

The risks and uncertainties described below are not the only ones that we face. Additional risks and uncertainties that we do not know about or that we currently think are immaterial may also impair our business operations in the future. Any of the following risks, if they occur, could materially and adversely affect our business, results of operations, prospects and financial condition.

We are also subject to market risks that are presented both in this subsection and in Note 44 to our audited consolidated financial statements as of and for the year ended December 31, 2025, included elsewhere in this annual report.

Risks Relating to our Operations and the Chilean Banking Industry

The growth of our loan portfolio in riskier segments may expose us to increased loan losses.

During the last five years, our total loan portfolio has grown at a compounded average growth rate (“CAGR”) of 4.9% per year in nominal terms. This expansion has been composed of CAGR of 8.2% in residential mortgage loans, 7.9% in consumer loans, and 2.1% in commercial loans, all in nominal terms. Over this period, nominal average growth in residential mortgage loans has clearly decoupled from macroeconomic fundamentals, being driven by a steadily growing housing demand linked to demographic trends in Chile, yet at a slower pace than prior to 2020, due to the combined impact of higher long-term interest rates and a local inflation rate that remained above the two-year target inflation range set by the Chilean Central Bank for most of the period. In consumer lending, this portfolio began to show positive growth once the liquidity surplus generated by financial support deployed by the Chilean government and Congress during the COVID-19 pandemic began to decrease in 2021, coupled with our efforts to improve value offerings for targeted segments. As such, demand for consumer loans reactivated in 2022, resulting in a 17.6% expansion in our consumer loans compared to 2021. However, in 2023, 2024 and 2025 our consumer loans slowed by growing 6.3%, 4.6%, and 3.9%, respectively, on an annual basis. These trends in consumer loans resulted from the combination of a deceleration in installment loans and increased year-end balances of credit card-related loans. Overall, the slowdown in consumer loans has been linked to changes in the economy, characterized by moderate GDP growth, higher-than-normal interest rates, and an unemployment rate above medium-term figures, together with a customer base that appears to be less willing to borrow under the prevailing economic and financial environment.

On the other hand, the nominal average expansion in commercial loans has steadily decelerated over the last five years, particularly due to weakened demand from the wholesale banking segment, as a result of political and economic uncertainty in Chile caused by: (i) two failed attempts to change the constitution, (ii) the government’s intention to introduce deep reforms in key economic sectors, (iii) lengthy approval processes for large-scale investment projects, and (iv) a decrease in the economy’s potential growth. These drivers have also adversely affected commercial loans to small and medium-sized enterprises (“SMEs”). Although successive state-guaranteed loan programs partially mitigated the impact on loans granted to SMEs, such loans slowed significantly between 2022 and 2024, resulting in a nominal annual expansion of 2.6% in 2024. Loans to SMEs showed a slight recovery over the past year, increasing in line with inflation in 2025, compared to the previous year. More importantly, core borrowing by SMEs grew well above inflation in 2025, after adjusting for the scheduled amortization of state-guaranteed loans granted in prior years.

For the year ended December 31, 2025, our loan portfolio was Ch$39,254,314 million, which represented a 0.8% annual increase compared to the Ch$38,936,296 million we recorded as of December 31, 2024. In turn, our allowances for expected credit losses increased 2.7% on an annual basis from Ch$693,434 million in 2024 to Ch$712,003 million in 2025. This increase in allowances for expected credit losses is in line with the increase in delinquency, which has remained above historical average levels for longer than expected. It also reflects macroeconomic environment that, according to market estimates, would improve marginally over the next twelve months. These factors have a direct effect on forward-looking provisioning models. The increase in delinquency has affected the entire banking industry. In the wholesale banking segment, certain industries continued to experience financial difficulties associated with specific business dynamics, such as the real estate and construction sector that showed improvements by the end of 2025, while other industries continued to be affected by subdued business activity. Likewise, in the retail banking segment, unemployment rates have remained above levels seen before 2022 yet borrowing costs and the inflation rate have gradually converged to neutral levels. However, the effect of cumulative inflation on durable and non-durable goods has continued to negatively impact disposable income of individual customers. All these factors contributed to the increase in allowances for expected credit losses that, in turn, resulted in a slight increase in our risk-index ratio (allowances for expected credit losses to total loans) from 1.78% in 2024 to 1.81% in 2025.

We recognize that the expansion experienced by our retail banking segment over the last years may expose us to higher levels of charge-offs and may require us to establish higher levels of allowances for loan losses in the future. This is because the average retail customer is riskier than wholesale banking counterparties, as they are more exposed to the economic cycle than wholesale customers, as evidenced during prior economic and financial crises. For example, individuals are impacted by economic factors such as unemployment, and SMEs are impacted by economic conditions affecting domestic demand. For this reason, we are constantly striving to develop and utilize improved scoring and approval models, while strengthening our collection procedures in order to mitigate the risks associated with this business growth.

Our loan portfolio may not continue to grow at the same or similar rates as it has in the past.

Our results of operations depend on our ability to grow our loan portfolio in a credit-sustainable way. Over the past decade, loan growth has been highly influenced by increased volatility in the Chilean economy and diverse reforms on general matters, including both banking and non-banking rules. Since the banking business is highly correlated with the economic cycle, the evolution of both the Chilean and global economy impacts the growth of the local industry’s loan portfolio and ours.

In 2023, lending activity decelerated, as demonstrated by nominal annual growth of only 3.2% in the industry’s loan portfolio, compared to a rate of 10.1% in 2022 (a significant rebound from its contraction due to the pandemic). This nominal annual growth of 3.2% which translated into a 1.5% real contraction, was well aligned with the slowdown evidenced by the Chilean economy, which recorded GDP growth of 0.7%. The real contraction in the industry’s loan book was the result of: (i) a 3.7% real contraction in commercial loans, primarily explained by a modest 0.3% annual expansion in private investment, in turn driven by uncertainties associated with two consecutive constitutional processes carried out in 2022 and 2023, reforms sponsored by the government aimed at introducing material changes to crucial economic areas, and lengthy approval processes for large-scale investment projects, and (ii) a real annual decline of 2.3% in consumer loans, primarily associated with (a) the 4.7% decrease in household consumption due to a longer-than-expected contractionary monetary policy that resulted in a reference interest rate of 11.25% until July 2023 and translated into increased borrowing costs, and (b) the adverse impact of economic slowdown on the labor market, leading to an increase in the average unemployment rate from 7.9% in 2022 to 8.7% in 2023. These trends were offset by a 2.4% real expansion in the industry’s residential mortgage loan portfolio, which has continued to grow steadily, though at a slower pace than in the past, given the prevailing scenario of long-term term interest rates that continue to be above the levels seen in the past decade. Within this scenario, our loan portfolio grew 2.5% in 2023 in nominal terms, which means a 2.2% annual contraction when adjusting for inflation. This slowdown was primarily attributable to a nominal annual decrease of 1.4% in commercial loans, or a 5.9% contraction in real terms, mainly concentrated in lower demand from the wholesale banking segment and moderate growth among SMEs, due to the factors mentioned above. In personal banking, instead, our residential mortgage loans grew 7.8% and our consumer loans increased 6.3%, both in nominal terms, evidencing slight real growth when adjusted by inflation. Whereas residential mortgage loans continued to be decoupled from the overall economic environment due to the dynamics in the housing market, the increase in consumer loans was principally driven by higher growth in credit card-related loans, due to both lower liquidity among individuals and enhanced commercial strategies implemented throughout the year to promote credit card use among targeted segments.

During 2024, the industry’s loan book grew 4.0% in nominal terms, which denotes a real annual contraction of 0.4%, once adjusted for inflation. This figure reflects the impact of subdued economic activity, with GDP growth of 2.8% in 2024, characterized by reduced private investment and moderate household consumption. The evolution of the industry’s loan portfolio was primarily driven by commercial loans, which recorded a real annual contraction of 1.9% (2.4% nominal growth), as a result of: (i) an annual decrease of 1.6% in private investment, amid weak business sentiment regarding the uncertain economic and political outlook; and (ii) credit-granting conditions that remained tight during the year, particularly for some industries, such as real estate, construction, and health services. This was partially offset by real annual expansions of 1.7% in residential mortgage loans (6.2% nominal growth) and 0.2% in consumer loans (4.6% nominal growth). In this context, our loan portfolio grew 3.4% in nominal terms, representing a 1.0% real contraction. The behavior of our loan book in 2024 was caused by a real annual contraction of 3.7% in commercial loans (0.6% nominal growth), primarily associated with decelerated lending activity in the wholesale banking segment. This was partially offset by higher dynamism in the SME subsegment, which managed to overcome the scheduled amortization of state-guaranteed loans (“FOGAPE”) granted in previous years. Personal banking continued to be the main source of growth for us in 2024, based on residential mortgage loans and consumer loans that grew 2.9% and 0.2% in real terms (nominal growth of 4.6% and 7.5%), respectively.

During 2025, lending activity continued to lack dynamism, translating into a 2.6% nominal annual expansion in total loans, or a 0.8% real annual contraction once adjusted for inflation, compared to the loan book recorded as of December 31, 2024. Although the local economy showed some signs of improvement by the end of 2025 —such as higher-than-expected growth in gross fixed capital formation of 7.0% as of December 31, 2025— overall economic activity remained subdued, with annual GDP growth of 2.5% as of the same date, partly due to modest private consumption. In this environment, the industry’s loan book was marked by commercial loans that remained flat in nominal terms, denoting a 3.3% real annual contraction when adjusting for inflation. Despite the rebound in private investment, demand for loans among companies remained weak throughout the year, particularly in the wholesale banking segment, which would have been caused by: (i) private investment primarily focused on large-scale projects in mining and energy, while construction and other categories lagged; (ii) financing initiatives by some corporations and large companies that resulted in the issuance of medium- and long-term debt in local and international capital markets to fund projects abroad; and (iii) lending conditions that remained strict, at least during the first half of the year, for certain industries such as real estate and construction.

On the other hand, lending products associated with personal banking managed to grow positively in nominal terms. In 2025, industry residential mortgage loans increased 1.5% and consumer loans grew 3.2% in real terms (nominal growth of 5.0% and 6.8%, respectively). Along with the impact of recent demographic changes in Chile on housing demand, growth in residential mortgage loans during 2025 was also driven by a special state-guaranteed program launched by the government to help middle-income families to access bank financing by guaranteeing borrowers’ obligations to banks and by subsidizing part of the interest rate paid by customers on such loans. These initiatives resulted in stronger demand, particularly by the end of the year. Regarding consumer loans, lending growth was the consequence of a combination of factors, including: (i) an improvement in private consumption that increased 2.7% in 2025 in comparison with the 1.1% expansion observed in 2024; (ii) lower borrowing costs, particularly for revolving loans, as the average monetary policy rate decreased from 6.2% in 2024 to 4.9% in 2025; and (iii) lower inflation for tradable goods, which benefited individuals’ disposable income.

Amid these trends, our loan portfolio recorded a 2.5% real annual contraction (0.8% nominal growth) as of December 31, 2025, compared to December 31, 2024. The pattern adopted by our commercial loans, which recorded a real annual decrease of 6.2% (3.0% nominal contraction), marked the evolution of our loan book in 2025, particularly towards the end of the year. Along with the drivers affecting commercial loans across the industry, we also faced the early repayment of certain trade finance loans—partly related to funding raised by companies in the capital markets—and the maturity of other credits that were not rolled over by certain corporate customers. This factor was partly offset by a recovery in core lending to SMEs. Whereas SME loans grew 3.3% in 2025 in nominal terms, this was primarily fostered by the expansion of other-than-FOGAPE loans granted to these customers. On the other hand, loans to personal banking continued to grow in nominal terms, as evidenced by residential mortgage loans that increased 1.8% in real terms (5.3% nominal growth) for the reasons noted above and our ability to tailor value offerings for our higher-income customer base. Furthermore, our portfolio of consumer loans increased 0.4% in real terms (3.9% nominal growth), fostered by positive real growth in both credit card-related loans and installment loans, as a consequence of our commercial strategies, risk origination protocols, and loyalty programs aimed at targeted segments.

Going forward, several factors could adversely affect the growth rate of the industry and, therefore, the expansion of our loan portfolio. This includes, but is not limited to: (i) a slowdown or negative GDP growth in the Chilean economy, (ii) deceleration or contraction in household consumption or private investment, (iii) changes in banking customers’ payment behavior, (iv) changes in banking regulation, (v) deterioration of consumer confidence and business sentiment as a consequence of increased uncertainty regarding economic activity or the social and political environment, (vi) economic reforms to be introduced by the current administration, including the pension, tax, and healthcare systems, among others, (vii) increasing barriers to, or failure to streamline, approval processes for high-impact investment projects, (viii) any new attempt to change core constitutional principles, and (ix) any effects related to social trends, social unrest, pandemics or other events affecting the growth potential of the Chilean economy. Similarly, these factors could affect our credit quality indicators causing us to establish higher allowances for loan losses.

For more information, see “Item 4. Information on the Company—Regulation and Supervision” and “Item 4. Information on the Company—Selected Statistical Information.”

Stricter banking regulations and changes in law may constrain our operations and thereby adversely affect our financial condition and results of operations.

The CMF is the entity that oversees and regulates the Chilean financial market, which is comprised of publicly traded companies, insurance companies, insurance brokers, mutual funds, fintech companies and investment funds as well as the Chilean banking industry as a whole and some non-bank lenders. In addition to being subject to regulation by the CMF, in certain matters, we are also subject to regulations issued by the Central Bank. See “Item 4. Information on the Company—Regulation and Supervision.”

Pursuant to the Ley General de Bancos (the “General Banking Act”) all Chilean banks may, subject to the approval of the CMF, engage in certain non-banking businesses approved by the law. The CMF’s approval will depend on the risk of the activity and the strength of the bank. Furthermore, the General Banking Act currently imposes on the Chilean banking system the Basel III capital adequacy guidelines issued by the Basel Committee on Banking Regulation and Supervisory Practices (the “Basel Committee”) and limits the discretion of the CMF to deny new banking licenses.

Capital Requirements and Basel III Implementation

On January 12, 2019, Law No. 21,130 was enacted, addressing four main topics with the aim of modernizing the Chilean banking framework by: (i) adopting the Basel III guidelines, considering a phased-in transition, (ii) introducing changes to the local regulator’s corporate governance by transferring powers formerly vested in the Superintendencia de Bancos e Instituciones Financieras de Chile (the “Superintendency of Banks and Financial Institutions” or “SBIF”) (the former banking supervisor) to the CMF in June 2019, (iii) reforming the resolution regime for Chilean banks in the case of insolvency, and (iv) introducing changes in relation to confidential information of banks’ customers, among other topics. For more information, see “Item 4. Information on the Company—Regulation and Supervision— Modifications to the General Banking Act.”

Regarding capital requirements, since December 1, 2021, new regulatory thresholds have been imposed on local banks, based on the specific regulations issued by the CMF, as follows: (i) CET1 ≥ 4.5% of risk-weighted assets (CET1 ratio); (ii) CET1 ≥ 3.0% of total risk assets (Leverage ratio); (iii) Tier 1 = CET1 + AT1 ≥ 6.0% of risk-weighted assets (Tier 1 ratio); (iv) Tier 1 + Tier 2 ≥ 8.0% of risk-weighted assets (Total Regulatory Capital ratio); (v) Conservation Buffer = 2.5% of risk-weighted assets; (vi) Countercyclical Buffer of up to 2.5% of risk-weighted assets, if any; (vii) Domestic Systemically-Important Banks (“D-SIB”) Buffer (“systemic buffer”) in the range of 1.0% to 3.5% of risk-weighted assets, if any; and (viii) Pillar 2 Buffer of up to 4.0% of risk-weighted assets, if any. As of the date of this annual report, all the main capital requirements and methodological adjustments associated with Basel III implementation were fully in place, except for specific Pillar 2 capital charges imposed by the CMF to certain local banks, for which the regulator sets particular phase-in periods.

On March 31, 2021, the CMF announced there were six D-SIB in Chile, including us, which would be subject to systemic capital charges to be determined by means of the CMF’s D-SIB methodology. On March 30, 2022, the CMF announced the systemic capital charges for the six previously-determined D-SIB, including a systemic capital charge equivalent to 1.25% of risk-weighted assets assigned to us, which was set to be gradually introduced over a four-year period starting December 1, 2022, at an annual and cumulative rate of 25% per year. The 1.25% systemic capital charge assigned to us was successively reaffirmed by the CMF on March 31, 2023, April 1, 2024, and April 1, 2025, which became fully in place on December 1, 2025. On March 30, 2026, the CMF announced systemic capital charges for local D-SIB and confirmed the 1.25% systemic capital requirement for us while maintaining the designation of D-SIB on six local banks, including us.

On May 23, 2023, the Chilean Central Bank activated a countercyclical buffer for the local banking system amounting to 0.5% of the banks’ risk-weighted assets, starting May 2024. In November 2024, the Central Bank maintained the countercyclical buffer unchanged while noting that it could converge to a neutral level of 1.0% in the medium term, which is expected to be determined by the Central Bank’s Board in May 2026. This guidance was reaffirmed by the Central Bank in November 2025. If increased, the new capital buffer is expected to become effective one year after its definition.

On January 13, 2023, we received communication from CMF stating that, based on the overhaul of our Internal Capital Adequacy Assessment Process (“ICAAP”) for the year ended December 31, 2022, as defined by RAN 21-13, a Pillar 2 capital requirement equivalent to 0.5% of our risk-weighted assets was assigned to us, to be completed in a four-year period starting June 30, 2024, at an annual rate of 25% per year. On January 16, 2025, the CMF informed us that the Pillar 2 capital requirement assigned to us was revised to 0.13% of the risk-weighted assets, net of required provisions, which we fulfilled since June 2024. On January 16, 2026, the CMF announced Pillar 2 capital charges for the local banks and removed the Pillar 2 capital requirement previously assigned to us, effective from such date.

On July 8, 2025, the CMF published the final set of amendments to Chapter 21-13 of the RAN, which among other topics introduced changes to the regulatory methodology for the measurement of the interest rate risk in the banking book (“IRRBB”) and new criteria for determining both outlier banks and potential capital requirements given banks’ IRRBB exposure in the short-term (∆NII metric) or the long-term (∆EVE metric). Depending on compliance with regulatory IRRBB thresholds, these new criteria could lead to additional minimum Pillar 2 capital charges and/or internal capital buffers as part of the ICAAP carried out by each bank on an annual basis. Although these amendments resulted in a decrease of our ∆EVE metric and an increase in our ∆NII metric, no additional Pillar 2 requirements have been imposed on us as of the date of this annual report on the basis of these amendments. However, we cannot assure you that further capital requirements will not be imposed in the future, which could translate into lower profitability if we are unable to cover such requirements with our current capital buffers.

On March 5, 2026, the CMF published a set of adjustments to Chapter 21-7 of the RAN for public comment. This proposal aims to modify the calculation of market risk weighted assets associated with the trading book by: (i) reducing the “vertical adjustment” parameter from 10% to 7%, which weighs notional amounts of financial instruments in order to determine the general interest rate risk, and (ii) easing the criteria used to determine the possibility of netting between similar positions held through derivatives rather than considering perfect match (identical positions) of maturity dates or interest rates. Although, as of the date of this annual report, the final rules have not been published yet, if enacted, these amendments would be expected to result in a decrease of approximately 20% on market risk-weighted assets and an improvement in capital adequacy ratios by approximately 10 to 15 basis points. Based on the schedule proposed by the CMF, these changes are expected to become effective in July 2026.

Although based on the current capital requirements assigned to us and to the banking system as a whole we continue to be in full compliance with the minimum requirements, we cannot be certain about any further potential capital requirements the regulator could impose on us in the future and, therefore, we cannot assure you that our profitability will not be impacted by actions we may take in order to fulfill new regulatory thresholds. For more detailed information on specific regulations currently in effect, capital thresholds and compliance, see “Item 4. Information on the Company—Regulation and Supervision—Modifications to the General Banking Act,” “Item 4. Information on the Company—Regulation and Supervision—Capital Adequacy Regulations,” and “Item 4. Information on the Company—Regulation and Supervision—Market Risk Regulations.”

Regarding banking resolution, on January 31, 2023, the CMF published a white paper “Guidelines for a new banking resolution framework and deposit insurance in Chile”. The white paper proposed the creation of a new agency, with financial and operating independence, in charge of both the administration and resolution of deposit insurance. Whereas in business-as-usual times, this entity should develop contingency and resolution plans for D-SIB, in times of crisis the agency would be responsible for the resolution process. According to the proposal, D-SIB should comply with a loss absorption capital requirement of at least 1.0% of total assets to ensure a stabilization scheme and a bail-in mechanism amount that would not be computed as Total Regulatory Capital for capital adequacy purposes. However, if not fulfilled, restrictions on dividend distribution would apply to banks. Likewise, the white paper discusses the key topics of an insurance deposit scheme, which should be funded by banks that apply for its use.

More recently, on January 21, 2026, the CMF published for public comment until June 10, 2026, a set of amendments to the local banking regulation, which are aligned with recommendations provided by the Financial Sector Assessment Program of the International Monetary Fund in 2021, that seek to: (i) strengthen the corporate governance framework for banks by reorganizing and consolidating currently existing rules in a new chapter of the RAN named “Principles and best practices of banking corporate governance,” which would address the roles and responsibilities of the board of directors, skills suitability of board members and the senior management, the functioning of board committees, and the mechanisms of internal oversight and risk control, among others; (ii) reinforce the risk-management framework through the implementation of an integrated risk-management and compliance function; and (iii) introduce a formal recovery-planning process by establishing the guidelines and requirements for this new function, which is intended to be part of the supervisory review and evaluation process carried out by the CMF on banks. If implemented, this set of amendments will be part of the 2028 supervisory review and evaluation process performed by the CMF. Even though this new proposal may be seen as a first step taken by the CMF towards the introduction of a resolution regime, as of the date of this annual report we cannot assure you as to when or how a resolution regime will be implemented in Chile. Similarly, we cannot assure you that the implementation of a new resolution framework and/or a deposit insurance scheme will not have an impact on our profitability, since as a D-SIB we could be subject to further capital requirements if this or another framework is adopted by the Chilean regulator in the future.

Liquidity Requirements

Since 2016 banks have been required to report and monitor liquidity ratios, such as the Liquidity Coverage Ratio (“LCR”) and Net Stable Funding Ratio (“NSFR”), for information purposes only. Through amendments to Chapter III.B.2.1 of the Compendio de Normas Financieras (the Compendium of Financial Norms) on May 4, 2018, and March 8, 2022, the Central Bank set minimum requirements for both the LCR and the NSFR. Accordingly, the regulatory limit for the LCR became 100% in June 2022, while the threshold for the NSFR was also set at 100% with phased-in implementation, reaching 100% on January 1, 2026. Likewise, in the last amendment to Chapter III.B.2.1 of the Compendio de Normas Financieras the Central Bank also: (i) removed the regulatory limit for 30-day and 90-day cash flow mismatches in local currency as measured by the C46 index while maintaining the limit for 30-day cash flow mismatches in foreign currency as measured by the C46 index; and (ii) introduced specifications on the treatment of securities pledged as technical reserves (arising from demand-deposits levels) in order to take them into account as high quality liquid assets. As part of the same amendment, the Central Bank established that banks are required to carry out an annual Internal Liquidity Adequacy Assessment Process (“ILAAP”). The final rules associated with ILAAP were published on January 16, 2023. The possibility of imposing additional High Quality Liquid Assets (“HQLA”) requirements based on the information disclosed in the ILAAP has been in effect since April 2025. As of December 31, 2025, our LCR and NSFR were 198% and 118%, respectively, and we were in compliance with the applicable regulatory thresholds of 100% and 90% in effect as of that date. Regardless of the current levels of these ratios, we cannot assure you that we will remain in compliance with regulatory requirements if, based on the ILAAP results, the regulator requires us to maintain greater amounts of HQLA. This could also lead us to acquire lower-margin financial instruments, which could have an adverse effect on our results of operations and profitability.

Changes in Credit Risk Methodologies

Since 2010, the CMF has developed and required banks to adopt diverse standardized methodologies for the determination of probabilities of default (“PD”) and loss given default (“LGD”) parameters used to calculate credit loss expenses under Chilean GAAP. Thus, in 2011 the CMF introduced a new standardized provisioning method for the individually assessed portfolio. Later, in 2014, a new standardized provisioning model for residential mortgage loans was established. In 2018, the standardized approach was extended to commercial loans in the group-based evaluated portfolio, which was supplemented in 2021 with a more precise treatment for certain sub-segments of this portfolio to achieve further alignment to Basel III. None of these rules had any impact on our results of operations under IFRS Accounting Standards or material impact on our results of operations under Chilean GAAP. On January 1, 2025, a standardized methodology to compute credit loss expenses for consumer loans became effective. This new methodology did not have any impact on our operational results or financial condition under IFRS Accounting Standards. However, the implementation of this new standardized provisioning method resulted in an impact of approximately Ch$69,035 million on our operating results before income tax for 2025, which was recognized as a release of additional provisions in accordance with Chilean GAAP. Based on the diverse changes introduced to the provisioning rules in the past, we cannot assure you that future changes, especially in the provisioning rules or related definitions, will not affect our results under IFRS Accounting Standards or Chilean GAAP, as applicable. For more detailed information on the changes in credit risk methodologies introduced by the CMF see “Item 4. Information on the Company—Regulation and Supervision—Credit Risk Provisioning.”

New Legislation, Other Bills and Regulatory Guidelines Affecting the Banking Business

Additionally, during recent years, several legal and administrative regulations have been enacted and amended to strengthen consumer protection and the relationship between financial institutions and their customers.

In May 2020, the Chilean Congress enacted Law No. 20,009, which expanded the liabilities of payment service providers, including banks, in connection with fraudulent transactions involving credit cards, debit cards, and electronic funds transfers. The implementation of this legislation has led to a significant increase in our liability exposure to customers for digital fraud in recent years. This increase was further exacerbated by the law's reduction of the requirements for customers to request reimbursement from banks in cases of fraud, resulting in a substantial rise in the number of complaints from credit card users, including instances of self-initiated fraud. Consequently, we experienced a marked upward trend in operational write-offs attributable to external fraud between 2021 and 2023. However, after the changes introduced to Law No. 20,009 through Law No. 21,673 that became effective in May 2024, we began to see a decrease in operational write-offs due to external fraud, since the new law introduced a set of responsibilities for users of credit or debit cards and specific deadlines for claiming the reversal or reimbursement of unknown charges on credit or debit cards. Notwithstanding such amendments, and although we have implemented measures and campaigns with our customers and have been able to adequately mitigate the impact of this legislation so far, we cannot assure you that we will not continue to see an increase in our liabilities or operational write-offs as a result of this legislation, particularly given the widespread use of credit and debit cards in Chile in recent years. For the year ended December 31, 2025, we incurred net operational write-offs (gross operational losses less recoveries) attributable to external fraud of Ch$13,226 million, compared to Ch$13,447 million and Ch$18,051 million in 2024 and 2023, respectively. For further information on the obligations and liabilities imposed by, and characteristics of, this legislation, see “Item 4. Information on the Company—Regulation and Supervision—Consumer-Oriented Regulation.”

Law No. 21,365 was enacted in July 2021, regulating interchange fees in the payment cards market in Chile. An autonomous and technical committee was created to determine, on a periodic basis, the fees or rates to be charged by payment card issuers such as banks (“Interchange Rates”) to the operating companies (acquirers). The technical committee is comprised of four members, each one appointed by: the Central Bank; the CMF; the Office of National Economic Prosecution (Fiscalía Nacional Económica); and the Ministry of Finance. This committee had six months to announce the first transitory limits and, afterwards, Interchange Rates will be reset every three years. On February 5, 2022, the committee announced new preliminary maximum fees of 0.6% for debit cards, 1.48% for credit cards and 1.04% for prepaid cards. On February 22, 2023, the technical committee determined the definitive scheme that will be applicable in Chile by defining a maximum interchange fee of 0.35% for debit cards and 0.80% for credit cards and prepaid cards. These limits went into effect in October 2023, and from that date the current limits will converge to the new ones during a phase-in period of 18 months. On September 30, 2024, the technical committee postponed the second phase of the interchange-rates reduction that was initially set to become effective on October 1, 2024, as a result of questions from market participants regarding the interchange rates set by the technical committee, given the significant changes evidenced in the credit and debit card market in recent years that could result in revised limits. As a consequence, as of the date of this annual report, the interchange rates were the same as those in effect on October 1, 2024, amounting to 0.5% for debit cards, 1.14% for credit cards and 0.94% for prepaid cards. Although we believe the prevailing or new limits —as currently known— will not have a material impact on our results of operations, given the uncertainty on the limits that could be determined by the technical committee in the future, we cannot currently assure you whether this new regulation will have a negative impact on the banking industry and on our results of operations in the long term.

Law No. 21,389, which creates an alimony debtor registry, came into effect in November 2022. This law requires banks and other financial service providers to retain amounts of credits granted to debtors that are registered in such registry, for the purpose of paying overdue alimonies. It further imposes fines on banks and financial institutions that do not consult the registry and do not withhold the amount specified. These fines amount to twice the money the bank should have withheld. For the year ended December 31, 2023, four Chilean banks, excluding us, were fined for not complying with the provisions of this law. For the year ended December 31, 2024, we were fined, along with five other Chilean banks, for non-compliance with the provisions established in Law No. 21,389. The fine imposed on us was informed to us on May 3, 2024, and amounted to UF111.48 (Ch$4.3 million as of December 31, 2024). We paid this fine during fiscal year 2024. For the year ended December 31, 2025, we were fined, together with five other Chilean banks (or their subsidiaries), for non-compliance with the provisions established in Law No. 21,389. The fine was imposed on us on May 20, 2025, and amounted to UF617.98 (Ch$24.6 million as of December 31, 2025). On May 29, 2025, we filed an appeal for reconsideration and reversal of this resolution. The courts resolved to dismiss the appeal and maintained the fine imposed on us by the CMF. We paid this fine during fiscal year 2025. Although we have continued optimizing our Management Information System and procedures to address the requirements imposed by Law No. 21,389, we cannot assure you that we will be able to comply with the provisions in the future if we do not have access to timely and adequate information provided by third parties or our Management Information System do not suitably discriminate customers’ information.

In December 2021, Law No. 21,398 was enacted. Among other measures to enhance consumer protection, this law introduced rules, such as: (i) requiring a competent court to construe certain provisions in favor of the consumer in court procedures, (ii) imposing new obligations applicable to financial service providers in connection with certain products, (iii) introducing new minimum requirements for pre-payments in credit transactions, and (iv) requiring an economic solvency analysis before contracting a credit product and informing the consumer of the result of said analysis, among other measures. On April 21, 2022, the Ministry of Economy, Development and Tourism published the Regulation on Analysis of Economic Solvency and Information to Consumers. This regulation, which came into force on May 4, 2024, establishes the requirements that such economic solvency analysis must contain. These new measures may increase our due diligence, operating and legal costs, affect the growth of our customer base and increase the costs associated with the management of our consumer loan portfolio. However, as of the date of this annual report, we cannot currently ascertain its impact, if any, on our results of operations in the future.

On May 30, 2024, Law No. 21,673 was published to avoid overborrowing by Chilean individuals and companies, among other purposes. This law also amended Law No. 18,010, among others, by empowering the CMF to determine the calculation algorithm or the variables to be used in the calculation of the minimum monthly payment required from credit card holders with respect to billed purchases or cash withdrawals. On June 4, 2025, through Norma de Carácter General No. 537, the CMF published the formulae and components for determining the minimum monthly payment required by banks to credit card users, together with the exceptional situations in which credit card issuers may exempt credit card users from a minimum payment requirement. In summary, the regulation establishes that the minimum payment will be determined as the sum of the Non-Financing Amount (“NFA”) plus 5% of the Financing Amount (“FA”). Whereas the NFA considers interest-free installments payable within the billing period, together with interest, fees and other charges (such as insurance premiums, taxes, etc.), the FA corresponds mainly to the outstanding capital. In addition, credit card issuers will be entitled to exempt credit card users from the minimum payment in accordance with their internal policies, only if the definitions of such payment consider the total amortization of the obligation exempted from payment over a maximum timeframe of 24 months, while the exemptions may not be granted for more than two consecutive months. This regulation will go into effect on June 4, 2026. Based on internal preliminary analysis of this new regulation, as of the date of this annual report, we do not expect it to have a material impact on our future results of operations or financial condition.

On July 3, 2024, Law No. 21,680 was published and became effective on April 1, 2026. This law creates an official information register that consolidates information on debtors’ obligations to improve credit assessment while providing more information to the Financial Market Commission for regulatory purposes. This consolidated debt register includes other-than-banking lenders as reporting entities thus allowing a more comprehensive and accurate view of the debtors’ creditworthiness. This information will be managed exclusively by the CMF and will allow lenders to access debtors' credit information and perform a more detailed credit risk assessment. Debtors, including both individuals and companies, will have the right to access their information and may request updates, rectifications or deletions if found to be incorrect. In July 2025 the CMF published the Norma de Carácter General No. 540, which defines the operating framework of the consolidated debt register by considering roles and responsibilities of reporting institutions, while in December 2025 the CMF published for public comment a framework for the obtaining, administration, and reporting of debtors’ consent in the context of the consolidated debt register. Although banks see this law favorably from the commercial and credit risk perspectives by permitting a more accurate assessment of current and future borrowers, such law may also result in both a one-time impact on expected credit losses for some specific borrowers or clusters of borrowers and increased operating expenses due to further information requests in the long run, which we are not currently able to predict.

In addition, Law No. 21,719 regulating the protection and processing of personal data was published on December 13, 2024. This law aims to improve the rules relating to the processing of personal data of individuals, so that it is carried out with the consent of the owner of such data or in cases authorized by law, ensuring standards of quality, information, transparency, and security. Likewise, the Personal Data Protection Agency was created under this law and is in charge of ensuring personal data protection. For companies in charge of managing personal data from their customers or counterparties as part of their normal course of business, starting in December 2026, the sanctions for non-compliance with the law may range from written warnings to fines of up to 4% of the company’s revenues depending on the severity of the violation and potential backsliding of large companies. This new framework could require changes in our current procedures to duly comply with these standards of data-privacy protection. If we fail to comply with these requirements or in case of breach of our systems and platforms through which we manage third-party data, we may be fined by the Personal Data Protection Agency, which could adversely affect our reputation and results of operations. For more information, see “Item 4. Information on the Company—Regulation and Supervision—Personal Data Protection Law.”

Another pending bill is expected to introduce additional requirements to judicially exercise rights attached to mortgage loan collateral, which could affect our ability to recover past-due loans by means of foreclosure. Yet another bill related to insolvency law, would limit a bank’s ability to deny providing certain banking products to personal banking customers (individuals) on the grounds that they have been debtors in an insolvency procedure in the past. Further, a bill introduced at the end of 2022 proposes to eliminate information on debtors’ behavior that occurred before the last five years, thereby limiting the available information to properly assess and evaluate the credit risks of a broad customer base. In addition, a bill proposed in March 2023 would preclude certain service providers from charging and indexing installments and bills to UF (the local inflation- indexed united of account), which in the case of banks would relate to mortgage loans granted to personal and SME banking customers. Likewise, in June 2024, a new bill was introduced in the lower house that aims to provide individual debtors with a timeframe of 13 years to repay both commercial and consumer loans granted by local banks while cancelling any type of interest previously agreed on such loans and prohibiting interest compounding over time. Also, in April 2025 a new bill was introduced in the lower house with the aim of prohibiting financial and healthcare institutions from setting age limits for customers when offering their services. In the case of banks, the bill proposes that credit-granting decisions be based only on objective criteria related to the loan applicant’s payment capacity and credit risk, without considering age as a determinant factor in the commercial decision. Also, banks will have to maintain a granular recordkeeping process that shall be subject to oversight by regulatory bodies. If enacted, such laws may limit the effectiveness of our credit evaluation process and the due diligence we perform over potential customers, may generate mismatches between assets and liabilities denominated in UF, or deteriorate our asset quality and require us to increase provisions for expected credit losses while affecting our results of operations.

From the consumer-protection perspective, in July 2025 a new bill intended to modify the General Banking Act was introduced for discussion in the Chilean lower house, which seeks to allow banking customers to gather in customer associations to negotiate interest rates, credit restructurings or any other topic covered by the customer-bank relationship. Also, customer associations would be entitled to form federations to represent customers of two or more banks and negotiate for the benefit of their members. According to the bill, banks would be compelled to recognize those associations and to negotiate with those composed of their customers. Also, the bill establishes that a representative of the customer associations or federations would be part of banks’ boards of directors.

Some of these bills are currently in the early or middle stages in the Chilean Congress, and some of them have been under discussion for several years, and there is no certainty whether any or all of them will be further discussed or not, and as to when or how these bills could change the current regulatory framework if approved. Therefore, we cannot determine or assure you whether they will materially affect our business and, in turn, our financial condition and results of operations in the future.

In September 2023, a Chilean private consumer body requested to the Chilean Antitrust Court (Tribunal de Defensa de la Libre Competencia) to initiate a regulatory recommendation process to propose to the President of Chile a draft bill to regulate the participation of conglomerates in the Chilean economy. As of the date of this annual report, this process is pending a decision by the Chilean Antitrust Court.

There are several bills introduced in recent years that would modify matters related to loans and credit products, such as interest-rate ceilings, prepayment fees, and the possibility of capitalizing interests. Some of them also aim to ease the financial burden of certain banking borrowers, such as SMEs and individuals. These bills, if enacted, may increase the costs of our consumer loan and mortgage products by setting higher mandatory protections for customers.

Future changes in regulations may also cause us to face increased compliance costs and limitations on our ability to pursue certain business opportunities and provide certain products and services. As some banking laws and regulations have been recently adopted, the way they are applied to the operations of financial institutions is still evolving. We cannot generally assure you that laws or regulations will be adopted, enforced or interpreted in a manner that will not have a material adverse effect on our business and results of operations. Lastly, we cannot assure you that regulators will not impose more restrictive limitations in the future on the activities of banks, including us, than those that are currently in effect. Any such change in terms of capital and liquidity adequacy, credit risk provisioning, and consumer protection, among other matters, could have a material adverse effect on our results of operations or financial condition in a fashion that we cannot determine in advance. For more information, see “Item 4. Information on the Company—Regulation and Supervision.”

Enhanced ESG and climate change disclosure may impose additional costs on our bank.

In recent years, various guidelines and regulations have been issued recommending or requiring companies to adopt policies and procedures with the purpose of enhancing the approach to environmental, governance and social (ESG) matters. On October 4, 2022, the CMF published guidelines for the implementation and supervision of sustainability standards by means of section 8.2 of Norma de Carácter GeneralN°461, which is aimed at improving the quality of information released by Chilean companies on sustainability and corporate governance matters on their annual report, which are in accordance with the guidelines of the Sustainable Accounting Standards Board. On October 29, 2024, Norma de Carácter General N° 461 was amended by Norma de Carácter General N° 519 making these new rules effective and mandatory for local banks as of the fiscal year ending on December 31, 2025.

Similarly, in March 2024, the SEC adopted rules aimed at enhancing and standardizing climate-related disclosures. The rules require registrants to include certain climate-related information in their registration statements and annual reports, including data regarding greenhouse gas emissions and information regarding climate-related risks and opportunities and related financial impacts, governance, and strategy. However, in March 2025, the SEC voted to end its defense of such rules. On September 12, 2025, the U.S. Court of Appeals for the Eighth Circuit maintained a pause on litigation regarding the rule and directed the SEC either to defend the rules or propose changes through notice-and-comment rulemaking. However, the Court did not impose any deadlines on the SEC, and the SEC has not taken further action. The September 4, 2025 Unified Agenda of Regulatory and Deregulatory Actions (the "Regulatory Agenda"), which outlines forthcoming actions by the SEC and other administrative agencies, did not include re-proposal of the rules. Accordingly, the climate-related disclosure rules issued by SEC currently have no legal force.

We cannot rule out that the adoption of new guidelines and regulations on ESG and climate change matters could limit our lending business, restrict our ability to recruit new customers, increase compliance requirements or result in higher operating or funding costs, among other effects in the future that we cannot predict now, given the still-developing and evolving regulatory environment related to ESG and climate change matters.

Modifications to reserve requirements may affect our growth capacity and margins.

According to the Chilean banking regulation, demand deposits and time deposits are subject to reserve requirements of 9.0% and 3.6% (with terms of less than one year), respectively. However, the Central Bank is entitled to require banks to maintain reserves of up to 40.0% for demand deposits and up to 20.0% for time deposits, to the extent needed for monetary policy purposes. In addition, if the aggregate balance of demand deposits and other demand accounts (e.g., deposits in current accounts, other demand deposits or obligations payable on demand and incurred in the ordinary course of business, saving deposits that allow unconditional withdrawals that bear a stated maturity, and other deposits payable immediately unconditionally) held by a bank exceeds 2.5 times its Total Regulatory Capital (including CET1, additional Tier 1 capital and Tier 2 capital) the bank is required to set aside a technical reserve equivalent to the full amount of that excess. In addition, under Basel III, banks denominated as D-SIB could be subject to stricter technical reserve requirements by which the threshold of 2.5 times the Total Regulatory Capital could be reduced to 1.5 times. The imposition of this additional requirement depends on the assessment of the CMF, although the decision must be agreed with the Central Bank. The CMF first designated six local banks (including us) as D-SIBs in March 2021. Our designation was subsequently reaffirmed in March 2022, March 2023, April 2024, April 2025 and March 2026, resulting in the imposition of a systemic capital charge on us. However, as of the date of this annual report, we have not received any notice of additional requirements—such as stricter technical reserve thresholds—arising from our D-SIB designation. Nonetheless, we cannot assure you that we will not be subject to such additional requirements in the future, to the extent we continue to be qualified as D-SIB, which in turn could impact our capacity to sustain balance sheet growth or lead us to raise funding from alternative sources if a greater amount of demand deposits must be set aside, which could have a material adverse effect on our net interest margin and results of operations. For more information on the implementation of the systemic buffer, see “Item 3. Key Information—Risk Factors—Stricter banking regulations and changes in law may constrain our operations and thereby adversely affect our financial condition and results of operations.”

Changes in accounting standards could impact our results.

The IASB, or other regulatory bodies, periodically introduce modifications to financial accounting and reporting standards under which we prepare our consolidated financial statements. These changes can materially impact on how we report financial information, affecting our results of operations. Also, we could be required to apply new or revised standards retroactively.

Currently, we cannot assure you that future changes in financial accounting and reporting standards will not substantially affect our results of operations or performance indicators, as we do not know the extent of future standards.

Increased competition and industry consolidation may adversely affect our operations.

The Chilean market for financial services is highly competitive. We compete with Chilean and foreign banks, with Banco del Estado de Chile, which is state-owned, and with other providers of financial services new to the banking industry and the traditional financial system. In addition, the retail segment (which encompasses individuals and small and medium-sized companies) has become the target market of several banks, since banking penetration is still in progress in Chile, particularly in this segment. Accordingly, competition within this market is increasing as banks are frequently incorporating new and tailored products and services, while striving to improve service quality and to accelerate digital transformation.

We also face increasingly significant competition from non-banking competitors in some of our credit products, especially credit cards and installment loans, including large department stores, pharmacy chains, supermarkets and private compensation funds, as well as saving and credit cooperatives. In addition, we face competition from other types of lenders, such as non-banking leasing, crowdfunding, factoring and automobile financing companies, especially in credit products, as well as mutual fund managers, pension fund managers and insurance companies within the market for savings and investment products and insurance companies in the market for mortgage loans. Likewise, new providers of financial services have emerged over the last years, such as e-commerce, local and foreign fintech companies, Telecom companies, like internet and mobile phone providers, and more recently several alternative marketplaces that are allowed to provide temporary financing directly to their customers or providers.

These new ways of doing business are based on the disintermediation of traditional banking service providers. Some of these companies may have more resources than us, including larger customer bases, stronger brand recognition and more effective marketing tools to approach banking current or potential customers. They may also adopt more aggressive pricing, while devoting significant resources to technology, infrastructure and marketing as it is part of their core business. Some of these non-banking competitors have recently commenced to be regulated by the CMF for purposes of banking supervision through Law No. 21,521, which regulates fintechs and open banking by establishing a general framework for financial services provided through technological means (including banks) in order to protect financial customers and data privacy while preserving financial stability and strengthening anti money-laundering. Although this law introduced specific requirements for fintechs, they are not subject to the same solvency, liquidity or reserve requirements imposed by the banking regulator, among other requisites, if any, as banks generally are. Therefore, these providers represent a challenge for the traditional banking industry that may result in lower margins and profitability in the future. Nevertheless, banks continue to be the main suppliers of loans, leasing, factoring and mutual fund management, directly or indirectly through subsidiaries, while growing quickly in insurance brokerage services. By the end of 2025, the CMF published for public comment a set of amendments to the open banking regulations addressing the exchange of information between banks and payment card issuers through the open banking system. The proposed modifications seek to implement the open banking system on a more gradual basis, improve operational feasibility, and ensure a proper balance between innovation, competition, and financial stability. Accordingly, the proposed regulation extends the rollout schedule, introduces interim milestones and a testing phase before full enforcement, simplifies the participation requirements imposed on certain players, refines the management of user consent, reinforces data traceability and interoperability rules, adjusts governance and operational responsibilities among participants, and enhances technical protocols for APIs and IT testing environments. Notwithstanding the evolution of the regulatory framework for fintechs and open banking, there remain uncertainties regarding final technical standards requirements, the cost compensation model, regulatory symmetry, operational burden and legal liability. To address these issues, the CMF convened a working group with representatives from participant industries, which is expected to inform supplementary rulemaking. However, we cannot assure you that the current regulatory framework or competitive landscape will develop in a manner that is favorable to us. For more information on these matters and on the implementation process of Law No. 21,521, see “Item 4. Regulation and Supervision—Fintech Law.”

Likewise, we are aware that new competitors may enter the market, or existing competitors may innovate their services and strategies to improve the quality of services rendered to their customers. If we fail to effectively anticipate or adapt to new trends in the financial services industry, including changes in the way of delivering financial products and services, introduction of emerging technologies, changes in customer behavior or adaption of the kinds of services offered to or needed by them, our business may be adversely affected.

In addition, the continuous introduction and application of new technologies, including –but not limited to– distributed ledger, artificial intelligence (“AI”) and biometrics, to provide customers with diverse financial products and services, may result in substantial expenditures to adapt and update our existing products and services as we continue to grow our internet and mobile banking capabilities and could result in direct financial and non-financial risks and indirect risks related to loss of competitive position. In this context, competitors could adapt faster than us to these new trends, which could lead to a temporary competitive disadvantage that could translate into lower revenues or a reduced ability to raise funding from retail depositors as customers may choose to conduct business with other financial service providers. Since we are aware of these new trends, we have devoted efforts to adapt our organization in pursuit of enhanced flexibility while looking for business and technological partnerships in order to take advantage of business opportunities arising in the market while keeping our value offerings adapted to new customers’ needs. As such, we have continued to deploy our digital strategy to offer tailored services and products to customers from different segments by leveraging our strategic capabilities, entering into alliances with other banking and non-banking providers, developing innovative digital solutions, and reinforcing benefits from using our payment and savings systems. We cannot assure that present or future competitors will not copy our strategy to launch new digital products or enter into digital alliances or that they will not develop better solutions by acquiring more modern technology or designing more innovative solutions.

Also, in the past, increasing competition within the Chilean banking industry has been accompanied by a consolidation wave and the entry of international players into the system through multiple mergers and acquisitions. These trends have continued and resulted in the creation of larger and stronger banking conglomerates, offering a wide range of products and services and targeting most of the segments in the Chilean banking market. These dynamics may adversely impact our results of operations as they may translate into higher interest rates paid on deposits and lower interest rates earned on loans, resulting in decreased net interest margins.

Further, following the new rules issued in recent years by the Chilean regulator, the processing and merchant acquiring services for payment cards (particularly related to new acquirers) may now be accomplished through a four-party mechanism, as done in some developed economies. This model facilitates the entry of new market players. As of December 31, 2025, a significant part of transaction processing services continued to be provided in Chile by Transbank S.A., a company owned by us and nine other banks (of which we held a 26.16% direct ownership as of December 31, 2025). However, some of the main Chilean banking players, including us, have already begun to implement the new four-party model for their own business. In this regard, on July 29, 2024, we created a dedicated acquiring and processing credit and debit card subsidiary named “ Operadora de Tarjetas Banchile Pagos S.A.” (“Banchile Pagos”), which is owned by Banco de Chile (99.9% share ownership) and Banchile Asesoría Financiera S.A. (0.1% share ownership). This subsidiary participates in the new four-party model with other banking and non-banking competitors. When creating this subsidiary, we granted a mandate to an independent third party to exercise all our voting rights in Transbank S.A. without receiving instructions from, nor sharing information with, us. Also, given the new four-party model, on January 23, 2023, the Chilean Association of Banks and Financial Institutions (“ABIF”) announced the willingness of banks participating in the ownership of Transbank S.A. to relinquish part or total control of the company, process that, as of the date of this annual report, is still open. In addition, as previously mentioned, a technical committee is responsible for determining the maximum interchange fees that may be charged by credit card issuers (including us) to companies that provide merchant acquiring services.

Also, by the end of 2025, the Central Bank approved regulations for a new payment clearinghouse for low-value transactions, which is expected to start operations in the second half of 2026. The entry of new participants into the local payment infrastructure may increase competition in diverse markets, such as current accounts and debit cards, produce disruptions in the flow of transactions within the local financial system, or result in further capital expenditures on information technology.

Based on these dynamics, net interest margins (once deducted provisions for loan losses) or fee-based income in certain sub-segments on targeted markets could decline over time.

For more information regarding past and recent changes in the Chilean banking industry see “Item 4. Information on the Company—Business Overview—Competition.”

Our exposure to certain segments of the retail market could lead to higher levels of total past-due loans and subsequent charge-offs.

Although we have historically been focused on wholesale banking, over the last years we have continued to reorient our commercial strategy to increase penetration of the retail banking segment. In fact, according to our Management Information System, the share of the retail banking segment in our total loan book has increased from 64.1% in 2020 to 67.5% in 2025. Although this trend has been primarily associated with an expansion in middle- and higher-income personal banking, our retail banking segment is also composed of small and medium-sized companies (approximately 13.8% of our total loan book as of December 31, 2025, which consists of companies with annual sales of up to approximately UF70,000 (approximately Ch$2,781 million or U.S.$3.1 million). Since these customers are likely to be more severely affected by adverse developments in the Chilean economy than large corporations and higher-income individuals, we may be exposed to higher levels of delinquency and subsequent charge-offs in the future, which could result in materially higher allowances for loan losses that could adversely affect our results of operations.

As of December 31, 2025, our past-due loans (loans 90-days or more past due) amounted to Ch$721,003 million, which represented a 15.8% annual increase when compared to the Ch$622,440 million recorded in 2024. These figures translated into an increase in our total past-due ratio (loans 90-days or more past due over total loans) from 1.60% in 2024 to 1.83% in 2025. According to our Management Information System, as of December 31, 2025, our past-due loans (loans 90-days or more past due) were composed of 87.6% of retail banking 90-days or more past-due loans (consumer and residential mortgage loans to individuals, as well as commercial loans to small and medium sized companies) and 12.4% of wholesale banking 90 days or more past-due loans (commercial loans to large companies and corporations). During the prior fiscal year, our past-due loans (90 days or more) portfolio was composed of 90.1% retail banking past-due loans (90 days or more) and 9.9% wholesale banking past-due loans (90 days or more).

Diverse financial and economic dynamics contributed to the increase in both the amount of total past-due loans and our total past-due loans ratio from 2024 to 2025, with these trends present across all lending families and business segments. According to our Management Information System, the increase in past-due loans was mainly explained by an annual increase of Ch$64,881 million in retail banking past-due loans (loans 90 days or more past due). This change, in turn, was primarily explained by an increase of Ch$57,922 million in personal banking loans, attributable to higher delinquency in both residential mortgage and consumer loans, which resulted in year-end past-due ratios that exceeded the levels seen before 2020. These trends have been caused by several factors which have negatively impacted the entire industry, such as unemployment rates higher than average levels seen in previous years, the effect of cumulative inflation on tradable and non-tradable goods that has negatively impacted household disposable income, and lagged effects of subdued economic growth after the end of the COVID-19 pandemic. In the case of commercial loans granted to SMEs, we also experienced an annual increase in past-due loans, amounting to Ch$6,959 million in December 2025 when compared to December 2024. The increase in this banking unit was primarily driven by the end of state-guaranteed programs for support of these kinds of companies and the maturity of loans formerly granted under such programs. In this regard, the modest evolution observed for leading economic activity indicators during the year, together with tempered business activity in the wholesale banking segment resulted in increased delinquency for small- and medium-sized companies. Similarly, the wholesale banking segment recorded an increase of Ch$33,682 million in past-due loans (loans 90 days or more past due) as of December 31, 2025, compared to a year earlier. This increase in delinquency was driven by reduced business activity in some specific industries and was particularly concentrated in our large companies banking unit and, to a lesser extent, in the corporate banking unit. As mentioned earlier, although private investment grew in 2025, the recovery was primarily concentrated in the mining and energy sectors, which represent a small share of our commercial loan portfolio, while the exports sector also presented a lower expansion in comparison with the performance observed in 2024. Accordingly, business activity in most of the industries continued to be tempered in 2025, which translated into worsened risk profiles for some customers.

As a result, the total past-due ratios (90 days or more past-due loans over total loans) increased from 1.81% in 2024 to 1.96% in 2025 in the retail banking segment and from 0.51% in 2024 to 0.88% in 2025 in the wholesale banking segment.

Given the unpredictability of certain social developments, the effects of political and social events in Chile affecting consumer confidence and business sentiment, international health events such as pandemics or epidemics, market fluctuations, changes to macroeconomic indicators, effects of global armed conflicts on the worldwide and local economies and delayed effects of these developments, may affect our diverse customer segments, we cannot assure you that we will be able to maintain a balanced risk-return equation if some or all of these developments materialize in the future. In this regard, economic recessions, social turmoil or market volatility could adversely affect the financial condition of our borrowers, which could translate into an increase in our non-performing loans, impair our loan portfolio and result in lower demand for our loans. Any of these trends could have a material adverse effect on our business, financial condition and results of operations.

For more information on past-due loans, see “Item 3. Key Information—Risk Factors—Risks Relating to our ADSs— Developments in international financial markets may adversely affect the market price of the ADSs and shares,” “Item 3. Key Information—Risk Factors—Risks Relating to Chile—Pandemics, epidemics and other health events will affect both the global and the Chilean economy, our business or results of operations and could affect our financial condition” and “Item 4. Information on the Company—Selected Statistical Information—Analysis of Substandard and Past-due loans.”

Our results of operations are affected by interest rate volatility and inflation.

Our results of operations depend greatly on our net interest income (including both net interest income and net inflation-indexation income), which represented 68.3% of our total operating revenues as of December 31, 2025. Changes in nominal interest rates and inflation could affect the interest rates earned on our interest-earning assets differently from the interest rates paid on our interest-bearing liabilities, resulting in lower net interest income. Likewise, changes in the inflation rate could affect the contribution of our inflation-indexed net asset position in the banking book, which could translate into lower inflation-indexation income. Inflation and interest rates are sensitive to several factors beyond our control, including the Central Bank’s monetary policy, deregulation of the Chilean financial sector, local and international economic developments and political conditions, among other factors. In addition, changes in interest rates affect the fair value of tradable securities and other investments or assets and are therefore exposed to potential negative value adjustments. Similarly, changes in the inflation rate could have an indirect effect on interest rates and a direct impact on revenues coming from assets indexed to the variation of the CPI or the UF, which is a functional currency indexed to the CPI. Therefore, any volatility in interest rates and inflation could have a material adverse effect on our results of operations and financial condition. Also, real negative interest rates could negatively impact our ability to raise funding for our operations, particularly for short-term maturities, which could result in higher funding costs and lower net interest margin.

The average annual short-term nominal interest rate in Chile for 90 to 360 day deposits received by Chilean financial institutions was 9.83% in 2023, 5.74% in 2024 and 4.69% in 2025, following the trend seen in the monetary policy interest rate, which averaged 10.5% in 2023, 6.2% in 2024 and 4.9% in 2025. The evolution of the reference rate has been associated with the attempts of the Chilean Central Bank to control inflation over recent years. As inflation began to decrease over the second half of 2023, the Central Bank began to reduce the monetary policy rate, which continued in 2024 by taking the reference rate from 8.25% on December 31, 2023 to 5.0% on December 31, 2024. During 2025, the Chilean Central Bank continued to reduce the monetary policy interest rate towards a neutral level, though at a slower pace due to certain inflationary pressures related to the delayed recognition of changes in energy prices (postponed due to ease the effect of the economic aftermath of the COVID-19 pandemic on household incomes). As a result, the monetary policy interest rate decreased from 5.0% on December 31, 2024, to 4.5% as of December 31, 2025. For 2026, the Chilean Central Bank has anticipated the monetary policy interest rate would converge to neutrality as long as inflation rate remains within the two-year target range, as expected. As of March 31, 2026, the monetary policy interest rate remained at 4.5%. Similarly, the average interest rate paid by Chilean financial institutions for 90 to 360 day Chilean peso denominated deposits was 4.39% in the three-month period ended on March 31, 2026. Regarding long-term interest rates, the average long-term nominal interest rate based on the interest rate of the ten-year bonds traded in the secondary market, issued by both the Central Bank and the Chilean Government, was 5.66% in 2023, 5.79% in 2024 and 5.68% in 2025. In 2025, long-term nominal interest rates showed a general downward trend rooted in inflationary pressures that decreased over the year, after the impact produced by electricity bills over the first half of 2025, as the 12-month inflation rate continued to decline to the monetary policy target range of 2% to 4%, from which point market agents’ expectations on inflation stabilized at 3%. As a result, the interest rate of ten-year Chilean peso denominated bonds, issued by both the Central Bank and the Chilean Government, decreased from an average level of 5.76% in December 2024 to an average of 5.36% in December 2025. In the three-month period ended March 31, 2026 the interest rate for the same Central Bank and Chilean Government bonds averaged 5.40%, while reaching an average of 5.56% for the month of March 2026.

Prior to 2021, inflation in Chile had been moderate, especially in comparison with periods of high inflation experienced in the 1980s and 1990s. High levels of inflation in Chile could adversely affect the Chilean economy, consumer purchasing power, household consumption and investment in machinery and equipment and, therefore, the demand for financing and our business. The annual inflation rate (as measured by annual changes in the CPI and as reported by the Chilean National Institute of Statistics) during the last five years and the first three months of 2026 was:

Source: Chilean National Institute of Statistics

In 2025, the inflation rate, measured as CPI variation, was 3.4%. This CPI variation was within the medium-term inflation target range of 2% to 4% as set by the Chilean Central Bank and favorably compared to the level of 4.5% registered in 2024. The decrease in the inflation rate was the consequence of several factors that resulted in a steady decrease in core inflation and volatile prices. In this regard, the inflation rate for tradable goods declined as a result of the positive impact on local prices of: (i) the 9.5% appreciation of the Chilean peso against the U.S. dollar between December 2024 and December 2025, which benefited prices of tradable goods indexed to the exchange rate, (ii) the potential impact of international trade redirection as a result of an upward revision of tariffs for certain trade players in specific destinations, (iii) an unusual behavior of some volatile food prices that declined significantly over the year, particularly fruits and vegetables, (iv) a monetary policy interest rate that remained above neutral levels to keep aware of inflationary pressures, and (v) subdued household consumption in alignment with overall economic activity. Consequently, 12-month inflation for tradable goods decreased from 4.2% in December 2024 to 2.7% in December 2025. To a lesser degree, the annual variation of CPI for non-tradable goods decreased from 5.0% in December 2024 to 4.4% in December 2025, which was primarily explained by: (i) a smoother convergence to the inflation target range as a result of energy prices that continued to internalize the adjustment in electricity bills, especially in the first half of the year, and (ii) prices of services that reflected the impact of increased labor costs, given the increase in minimum wages and the reduction in weekly working hours. As a result of the decreasing trend recorded by the inflation rate over 2025, the Chilean Central Bank continued to deploy an easing monetary policy, although at a slower pace than in 2024, primarily due to the higher volatility observed in local prices, which could have impacted inflation. Thus, after taking the reference rate from 8.25% in December 2023 to 5.0% in December 2024, the Central Bank took the overnight rate to 4.5% in December 2025 through two cuts of 25 basis points each in July 2025 and December 2025. Although we benefit from a higher-than-expected inflation rate in Chile in the short term, due to the structure of our assets and liabilities (we have a net asset position indexed to inflation, which is composed of both an economic hedge of our shareholders’ equity against the effect of inflation on the loss in purchasing power and directional positions taken by our treasury as part of our asset and liability management strategies and risk appetite), significant and persistent increases or decreases in inflation with respect to current levels or the target set by the Central Bank could adversely affect our net interest income, results of operations and, therefore, the value of our securities and profitability in the long term.

Additionally, measures being taken by the Central Bank to control inflation may adversely affect the Chilean economy, the banking business and our results of operations and financial condition. In this regard, the measures adopted by the Central Bank in the past to control inflation have included monetary policy interest rate hikes, which have restricted the demand for loans while negatively affecting economic growth through constrained household spending and capital expenditures. As mentioned earlier, in 2025, the Central Bank reduced the monetary policy interest rate twice, ending the year at 4.5%. Although the Central Bank has declared the intention to reduce the monetary policy interest rate towards neutral levels in 2026, this will finally depend on the evolution of 12-month inflation and its eventual convergence to the medium-term target. As of March 31, 2026, the monetary policy interest rate remained at 4.5%.

For more information, see “Item 3. Key Information—Risk Factors—Risks Relating to our ADSs—Developments in international financial markets may adversely affect the market price of the ADSs and shares,” “Item 3. Key Information—Risk Factors—Risks Relating to Chile—Pandemics, epidemics and other health events will affect both the global and the Chilean economy, our business or results of operations and could affect our financial condition” “Item 5. Operating and Financial Review and Prospects—Operating Results—Overview—Inflation” and “Item 5. Operating and Financial Review and Prospects—Operating Results—Overview—Interest Rates.”

Our loan portfolio is subject to prepayment risk, which could have an adverse effect on our results of operations.

Most of our loan portfolio is subject to prepayment risk, which is associated with the borrowers’ or issuers’ ability to pay off an obligation prior to its maturity. Prepayment risk increases when interest rates decline, which could result in unexpected repricing of our assets that may have a material adverse effect on us if we are not able to reprice our liabilities. In the past, prepayment risk has had an adverse impact on credit card loans and residential mortgage loans by reducing the average repricing tenor of these assets, which may result in mismatches with liabilities used to finance them that could be just partly offset by investment choices at lower interest rates or prepayment fees charged to borrowers that only represent a portion of the incurred financial loss. After the COVID-19 pandemic, short-term interest rates increased significantly from the levels seen after the subprime crisis due to the attempts of central banks to control the inflationary wave observed across the globe. Likewise, greater fiscal deficits in developed and developing economies, concerns over the convergence of inflation rates to target levels in the medium-term given economic growth expectations and increased household consumption, resulted in an increase in long-term interest rates. In Chile, such effect was amplified by pension funds withdrawals approved by Congress to help the population to address the economic aftermath of the pandemic. As inflation ceded, the Chilean Central Bank decided to ease the monetary policy by reducing the monetary policy interest rate towards neutral levels in 2025. Although long-term interest rates continue to be above pre-pandemic levels, they also decreased in Chile during 2025. Notwithstanding these trends, lower-than-forecasted economic dynamism or a decrease in inflationary pressures may result in lower interest rates in the future. Also, in the past, there have existed diverse initiatives sponsored by the Chilean government or members of Congress intended to limit prepayment fees, which could have a negative effect on our results if implemented, in an amount that we are not able to estimate. Accordingly, we cannot assure you that any future changes related to prepayment fees or a decline in interest rates to the levels seen prior to 2019 will not have a material impact on our business.

Part of the information included in our financial statements considers assumptions, estimates and modeling which, if inaccurate, could have a material impact on our results of operations and financial position.

The preparation of our financial statements requires management to make judgments and estimates that affect the amounts of assets, liabilities, income and expenses reported in our financial statements. Estimates and assumptions are based on historical experience, expert judgment and other factors, including expectations of future developments under certain alternative scenarios. Although assumptions and estimates are assessed and revised on an ongoing basis, we cannot rule out that projected scenarios could dramatically change in the short term, causing a severe impact on fundamentals and estimates.

We are also subject to model risk since the valuation of financial instruments relies on models (such as cash flows valuation models for fixed-income securities, valuation models for derivatives including technical approximations, value adjustments models for derivatives, models for determining the impairment of financial assets and IFRS 9 forward-looking provisioning models, among others) and inputs, which, in some cases, are not observable. Accordingly, computed values for securities and financial instruments may be inaccurate or subject to change, since the inputs used for specific models may be unavailable, particularly for illiquid assets or under scenarios of financial turmoil. In these cases, we will make assumptions and judgments in order to establish the fair value of certain instruments, which involves uncertainty and may translate into inaccurate estimates of actual results. In this regard, the main accounting items subject to risk of incorrect valuation include impairment of loans to customers and advances to banks, valuation of fixed-income securities and financial derivatives held for trading and hedge accounting, valuation and impairment of financial assets measured at fair value through other comprehensive income, and deferred tax assets and provisions for liabilities, among others. If our judgment, assumptions or models used in valuing these items are inaccurate, there could be a material effect on our results, funding requirements and capital ratios.

Likewise, in the normal course of business, we develop and utilize diverse models for risk management purposes, which rely on assumptions, judgment and statistical simulations, which could lead us to inaccurate conclusions and inadequate decision making. For these purposes, we also rely on inputs and information provided by third parties. For example, we assess the credit quality of our borrowers based on the information that is available in Chile regarding their indebtedness with the financial system. This includes information provided by the CMF, the local credit bureaus, databases we have created through the years and other public sources. Also, as mentioned in this annual report, a consolidated debtor registry that includes banking and non-banking loan providers in the form of credit card loans, leasing loans, factoring loans, and other credit obligations, particularly for individuals, is expected to be in place during 2026. Therefore, information on the indebtedness of our customers and non-customers with these lenders is not publicly available or consolidated with borrowings from banks as of the date of this annual report. As such, our assessment of customers for the scoring and provisioning processes may be based on partial, inaccurate or unreliable information on the borrowers’ creditworthiness, which could lead us to increase our expected credit losses in the future once complete information is fully available through the consolidation of customers’ indebtedness with all banking and non-banking lenders. In addition, we retrieve financial information, such as interest rates, exchange rates, swap spreads, credit spreads and option volatilities from extensively used financial terminals and well-known market data providers that, nevertheless, could be inaccurate or could misrepresent actual market conditions that may result in inadequate conclusions about financial exposures.

Moreover, the cessation or replacement of certain rates, market indices or benchmarks extensively used by financial markets and practitioners for valuation purposes, such as interest rates or foreign exchange rates indices, could also impact the accuracy of the estimates we include in our financial statements. An example of such changes was the transition from the London Interbank Offer Rate or LIBOR to the Secured Overnight Financing Rate or SOFR, which did not have a material impact on us. However, it is important to note that we cannot predict the future performance of SOFR and other alternative benchmarks that replaced LIBOR. Likewise, we cannot assure you that other similar reforms and changes or the establishment of alternative reference rates or any other reforms to these reference rates that may be enacted will not have a material impact on our results of operations in the future.

Market turmoil could result in negative adjustments to the fair value of our financial assets, which could translate into a material effect on our results or financial condition.

Over the last decade worldwide financial markets have been subject to stress coming from diverse fronts that has resulted in sharp temporary changes in interest rates and credit spreads, including those related to the effects of the COVID-19 pandemic, the banking crisis in the United States and Europe during the spring of 2023, and more recently, the impact of geopolitical conflicts arising in eastern Europe and the Middle East, and changes in the foreign policy of the United States, particularly in relation to migration, criminality and trade matters, all of which have also affected or could further affect the Chilean economy and the local financial market to different extents. We have material exposures to debt securities issued by the Chilean Government and the Chilean Central Bank and to other fixed-income securities issued by local and foreign banking and corporate issuers. Most of these securities are measured at fair value with direct impact either on our income statement (trading securities) or through other comprehensive income, while a remaining minor portion is measured at amortized cost. Therefore, these positions expose us to potential negative fair value adjustments in the short- or medium-term and to impairments in the long-term, if dramatic and unexpected changes in short- or long-term local and foreign interest rates and credit spreads take place. Any of these factors could have a material adverse effect on our results of operations and financial condition.

In general terms, in 2025, the Chilean financial market was marked by an overall decline in interest rates and lower volatility than in previous years. In particular, as inflation began to recede over the second half of the year, interest rates steadily decreased when compared to December 2024. In this context, the monetary policy interest rate decreased from 5.00% as of December 31, 2024 to 4.50% on December 31, 2025. Thus, in 2025, the Central Bank continued to deploy an easing monetary policy as expected, although at a slower pace than in 2024, mainly due to 12-month inflation records that remained above the Central Bank’s two-year target range for most of the year while only converging close to the midpoint of the target range by December 2025. Aligned with the evolution of the monetary policy interest rate, the average interest rates paid by Chilean banks on 90 to 360-day deposits decreased from 5.0% in December 2024 to 4.38% in December 2025. In the case of long-term interest rates, we witnessed an average decline over the year, as evidenced by interest rates of ten-year Central Bank bonds denominated in Chilean peso that decreased from 5.76% on average in December 2024 to 5.36% on average in December 2025, while interest rates for ten-year Central Bank bonds denominated in UF decreased from an average of 2.42% in December 2024 to 2.33% on average for the month of December 2025. The evolution of longer-term interest rates was marked by increased confidence of market agents in the Central Bank’s commitment to returning inflation to the neighborhood of 3% in the medium term, which resulted in a decrease in nominal interest rates and, to a lesser degree, in real interest rates. Based on these changes, the Chilean peso yield curve steepened by the end of the year as evidenced by an average term spread between interest rates of ten-year Central Bank bonds denominated in Chilean peso and the monetary policy interest rate that changed from -0.42% in 2024 to 0.8% in 2025 and from 0.61% in the month of December 2024 to 0.73% in the month of December 2025.

Globally, after a period of tightening monetary policies deployed across the globe to control inflationary pressures in both developed and developing economies, central banks continued easing their monetary stances in order to reactivate economic growth and avoid an increase of unemployment rates. Accordingly, the Federal Reserve of the United States decreased the reference interest rate from 4.50% on December 31, 2024, to 3.75% on December 31, 2025, while the European Central Bank took the monetary policy interest rate from 3.00% on December 31, 2024, to 2.00% on December 31, 2025. For longer terms, interest rates of U.S. ten-year bonds displayed an average downward trend in 2025 by decreasing from 4.6% on December 31, 2024, to 4.2% on December 31, 2025.

These factors had mixed impacts on the market value of financial assets for the entire industry and us, including financial instruments measured at fair value with direct impact on the income statement and those measured at fair value through other comprehensive income.

As of December 31, 2025, our fixed-income portfolio was composed of securities measured at fair value through profit or loss (including debt securities and other trading positions while excluding derivatives) amounting to Ch$3,523,961 million (approximately U.S.$3,914 million), financial instruments measured at fair value through other comprehensive income (including minor equity positions held by our securities brokerage subsidiary) amounting to Ch$3,560,203 million (approximately U.S.$3,954 million), and financial instruments measured at amortized cost (so not affected by changes in market factors in terms of fair value adjustments) for an amount of Ch$460,937 million (approximately U.S.$512 million), which are mostly concentrated in bonds and notes issued by the Central Bank and the Chilean Government. Likewise, as of the same date we maintained asset and liability balances in derivatives held for trading and derivatives hedge accounting measured at fair value of Ch$1,899,181 million (approximately U.S.$2,109 million) and Ch$2,378,551 million (approximately U.S.$2,642 million), respectively.

The approval of additional pension fund withdrawals by Congress, the introduction of further changes to the pension fund system, increased uncertainty regarding economic and social reforms to be implemented by Chile’s current or future administrations, increased and persistent fiscal deficit in Chile, significant changes in global trade as a result of the new tariffs foreign policy adopted by the current U.S. administration and potential retaliation of other countries in response to revised tariffs, changes in the U.S. foreign policy in relation to South America and Caribbean region, or the persistence of armed conflicts in eastern Europe and the Middle East or the sudden escalation of international conflicts, such as the events involving the United States, Israel, Iran and other countries of the Middle East which escalated in March 2026, market turmoil associated with the financial distress of local or global banking players and internal or external forces sustaining persistent inflation, among other factors, could cause further increases in short- and long-term local interest rates, which could have additional impacts on the market value of our fixed-income portfolio measured at fair value.

See also “Item 3. Key Information—Risk Factors—Risks Relating to our ADSs—Developments in international financial markets may adversely affect the market price of the ADSs and shares” and “Item 3. Key Information—Risk Factors—Risks Relating to Chile—Pandemics, epidemics and other health events will affect both the global and the Chilean economy, our business or results of operations and could affect our financial condition.”

Operational problems, errors, criminal events or terrorism or other events relating to force majeure may have a material adverse impact on our business, financial condition, and results of operations.

As all large financial institutions, we are exposed to many operational risks, including the risk of fraud by employees and outsiders, failure to obtain suitable internal authorizations, failure to properly document in-person and online transactions, equipment failures, new technologies (such as artificial intelligence), mistakes made by employees and natural disasters, such as earthquakes, tsunamis, wildfires, and floods.

Chile is located in one of the most seismically active regions in the world– the Nazca tectonic plate. Our results of operations can be materially affected by natural disasters, particularly in locations where a significant portion of our loan portfolio is composed of real estate loans. These force majeure events related to nature include, but are not limited to, earthquakes, tsunamis, floods, extreme heat, droughts, increase in the sea level and storms may cause thorough damage which could impair the asset quality of our loan portfolio and our collateral as well as a material adverse impact on the economy of the affected region and therefore on our bank.

We could also be affected by operational disruptions associated with intentional or unintentional mass employee absence due to social unrest, demonstrations, street riots, transportation or energy services interruptions, massive strikes or strikes at an industry level, massive epidemic or pandemic outbreaks, among others.

In addition, given recent changes in the way we provide services to our customers, which have resulted in a wide array of digital solutions ranging from refurbished websites to improved mobile applications for smartphones and tablets, we are increasingly dependent on the stability of on-site servers, remote servers or cloud servers in order to provide timely and high standard services. Disruptions or interruptions in connectivity or operational disruptions could lead to a deterioration in our service quality indicators and, more specifically, customers complaints, legal actions, and reputational damage. Similarly, as the use of a wide array of technological solutions—including AI, distributed ledger technology (DLT), blockchain, and quantum computing—becomes common, we may be increasingly exposed to risks related to flawed or poor algorithms, false inferences or outputs, heightened legal and regulatory challenges and inadvertent disclosure of proprietary or confidential information. Although these technological solutions are expected to improve efficiency, transparency and traceability, they also translate into technological and operational risks, which eventually could negatively affect the integrity and resilience of operations. Also, there is no certainty that we will be able to adopt new technology to replace critical systems and applications that become obsolete. In this regard, in the migration process of legacy systems to hybrid or fully distributed environments, we may face transitional, technological and integration difficulties that could affect system resilience, data integrity and cybersecurity. These factors could adversely affect our ability to deliver critical services, to comply with regulatory requirements, and to maintain the continuity of our operations. Although we strive to continually improve the stability of our services while reinforcing protocols to overcome new technological challenges that may impact our operations, we cannot assure you that specific events that could affect our results of operations, financial condition, or the value of our shares and ADSs, will not occur.

Furthermore, we may be exposed to criminal events, terrorist attacks or rioting that could result in physical damage to our buildings (including our headquarters, offices and automatic teller machines (“ATMs”)) and/or injury to customers, employees, providers and others. Likewise, we are exposed to internal and external fraud actions that may produce an increase in operational losses. Although we maintain an operational control model that relies on a comprehensive operational risk policy, trained staff and world-class technological resources that have been enhanced over the last years, as well as comprehensive contingency plans and security procedures, there can be no assurances that operational problems, errors, criminal events or terrorist attacks will not occur and that their occurrence will not have a material adverse impact on our results of operations, financial condition and the value of our shares and ADSs.

The use of AI, machine learning and data-driven models and adoption of new technologies may increase our exposure to operational, regulatory, legal, reputational, and financial risks, which could adversely affect our business, results of operations, and financial condition.

We use and expect to expand our use of AI, machine learning and data-driven models in customer interactions, micro-credit assessment, risk management, financial research and analysis, internal data processing, fraud detection, and support tools for commercial decision making, among other tasks. Although the design, development, implementation, and ongoing operation of these technologies are accompanied by appropriate usage protocols and human oversight, they may result in risks and challenges that are difficult to anticipate or fully mitigate. In this regard, these technologies may produce inaccurate, incomplete, biased, inconsistent, or inappropriate outputs due to limitations in data quality, failures in model design, ineffective human oversight, incomplete training processes, incorrect underlying assumptions, or abrupt changes in the economic, business or social environment. As such, weaknesses in data governance, insufficient data quality controls, biased or unrepresentative datasets, or unauthorized access to or use of data may impair AI tools and model’s performance. Accordingly, the use of AI tools and models is expected to rely on effective model risk management and data governance, independent validation, and ongoing monitoring. If these controls are not effective, if model limitations are not identified in a timely manner, or if the AI tools we use are alleged or determined to be unreliable, insufficiently explainable, unfair, or otherwise inconsistent with applicable legal, regulatory, or ethical expectations, we could experience incorrect decision-making, model failures, obsolescence, compliance issues, customer dissatisfaction and loss of trust, failure to comply with personal data and consumer protection requirements, financial losses, deterioration of our competitive position, increased operational risk, potential cybersecurity breaches, increased litigation and reputational risk.

Also, the development and deployment of AI technologies may increase our reliance on third-party vendors, cloud providers, and specialized technology and consultancy firms. Concentration among service providers, deficiencies in third-party risk management or controls, data handling failures, or changes in contractual terms may disrupt our operations, constrain our ability to use certain AI capabilities, or increased operating expenses. In addition, AI techniques may be used by cybercriminals to facilitate fraud, cyberattacks, identity theft, or disinformation, which may increase the frequency, sophistication, or impact of such incidents.

Furthermore, it is important to note that the regulatory and supervisory framework applicable to AI is in continuous evolution and may change significantly in the coming years. Current and future laws, regulations, supervisory guidance, and enforcement actions relating to AI, machine learning data usage, model governance, algorithmic accountability, and ethical standards may impose additional compliance requirements or result in more sophisticated oversight expectations. These developments could translate into restrictions or specific conditions for the use of certain technologies or data, increased complexity in the adoption or implementation of new technologies, higher operating expenses related to compliance, litigation, remediation measures, fines, penalties, or other supervisory requirements, together with increased capital expenditures aimed at reinforcing cybersecurity protocols and bolstering data handling capabilities.

See also “Item 3. Key Information—Risk Factors—Risks Relating to our Operations and the Chilean Banking Industry—Cybersecurity events could negatively affect our reputation or results of operations and may result in litigation”; “Item 3. Key Information—Risk Factors—Risks Relating to our Operations and the Chilean Banking Industry—Operational problems, errors, criminal events or terrorism or other events relating to force majeure may have a material adverse impact on our business, financial condition, and results of operations” and “Item 4. Information on the Company—History and Development of the Bank—Technological Projects.”

Cybersecurity events could negatively affect our reputation or results of operations and may result in litigation.

We have access to large amounts of confidential financial information and hold substantial financial assets belonging to our customers as well as to us. In addition, we provide our customers with online access to their accounts. Customers can transfer substantial financial assets in Chile and abroad through electronic channels, while purchasing goods or withdrawing funds with credit and debit cards issued by us in Chile and abroad. Among the most significant cyber-attack risks that we are constantly facing are internet fraud and loss of sensitive information, both from our customers and ourselves. Loss from internet fraud occurs when cyber criminals extract funds directly from customers’ or our accounts using fraudulent schemes that may include internet-based fund transfers or fraudulent charges in credit and debit cards. We are also exposed to cyber-attacks, hacking and other cybersecurity incidents in the normal course of business. More recently, given the fast development and spreading of AI tools, new and increasingly sophisticated and effective cybersecurity threats are constantly arising, which poses a challenging environment for the development of new digital-based solutions for customers and the introduction of new technologies for middle- and back-office tasks. Thus, as a financial institution, we are under a constant threat of suffering losses due to these reasons. In addition, our risk and exposure to these matters remains heightened because of the evolving nature and complexity of these threats from cybercriminals and hackers, the increased reliance on new technologies (including new developments in AI), our plans to continue to provide and enhance our internet banking and mobile banking channels, and our plans to develop additional remote connectivity solutions to serve our customers. Accordingly, cybersecurity is a material risk for us.

There has been an increased level of attention focused on cyber-attacks against large corporations and financial services providers like us, that include, but are not limited to, obtaining unauthorized access to digital systems for purposes of misappropriating cash, other assets or sensitive information, corrupting data or causing operational disruptions. Cybersecurity incidents, such as computer break-ins, phishing, identity theft and other disruptions, could negatively affect the security of information stored in and transmitted through our computer systems and network infrastructure. Subsequently, this may result in significant liability to us in excess of insurance coverage, which may carry low coverage limits, and may cause existing and potential customers to refrain from doing business with us. Additionally, cyber-attacks on our network or other systems could have a material adverse effect on our business and results of operations due to financial losses, losses of sensitive information, interruption or delays in our business and operations, regulatory fines, reimbursement or other compensation costs, compliance costs and reputational damage, among other things.

Since we suffered a cyber-attack in 2018, we have continued to enhance our data security and IT infrastructure and have consistently enhanced our cybersecurity protocols, infrastructure, and access-control to our networks, while simultaneously improving our technological capabilities and human resources on the detection and management of high-risk threats. We have worked on creating a corporate culture on cybersecurity matters, establishing cybersecurity guidelines for providers, and enhancing internal channels to report cybersecurity threats. Likewise, we have made advances in cybersecurity standards for datacenters and the cloud while developing new cybersecurity capabilities. We continued to reinforce the corporate culture on cybersecurity while enhancing measures and means to enhance confidentiality of our customers’ private information. Furthermore, in 2023, we deployed an “Awareness Program” for employees, customers, suppliers and the overall community. In 2024, we continued to deploy the main pillars of our cybersecurity strategy, which become increasingly important in the context of our digital strategy and the increased use of AI. Thus, we developed and promoted internal channels to facilitate the reporting of suspicious cybersecurity threats by our personnel through our corporate Awareness Program. Such measure resulted in a 42% increase in the number of threats reported in 2024 compared to 2023.

In 2025, we focused on strengthening measures countering identity theft and cybersecurity risk in response to new emerging threats. The measures implemented included access control for human and non-human identities; protection of customer and employee data; and comprehensive risk management throughout the ecosystem, including the supply chain. In addition, we managed to: (i) optimize the technological architecture to support increased volumes of information, (ii) reinforce the vulnerability management process through secure development practices and process automation, and (iii) include analytical models to prioritize critical actions. Likewise, in 2025, the Awareness Program continued to promote practices aimed at strengthening the culture of security and early detection of threats, which enabled us to maintain the effectiveness of the reporting process and ensure that employees have the necessary tools to identify and report incidents in a timely manner. In this regard, during 2025 the reporting channels remained effective, as demonstrated by a real threat rate of 32% achieved over the total amount of potential threats reported. Finally, during fiscal year 2025, there were no cybersecurity incidents affecting our operations or customers. Even though we have not experienced any material losses related to cybersecurity and we have been working to prevent them, we cannot assure you that we will not suffer additional losses in the future related to these kinds of events.

The occurrence of any cyber-attack or information security breach could result in material adverse consequences to us, including damage to our reputation and the loss of confidence from customers. We could also face litigation or additional regulatory and public scrutiny. Litigation or regulatory actions in turn could lead to significant liability or other sanctions, including fines and penalties or fund reimbursements to customers adversely affected by any security breach. As mentioned above, successful attacks or systems failures at our bank or at other financial institutions could lead to a general loss of customer confidence in financial institutions, including us. In addition, we depend on a variety of internet-based data processing, communication, and information exchange platforms and networks, including the use of both on-premises and cloud servers. We cannot assure you that all our systems are entirely free from vulnerability. Additionally, we enter into contracts with several third parties to provide our customers with data processing and communication services. Therefore, if information security is breached, or if one of our employees or external service providers’ breaches compliance procedures, information could be lost or misappropriated, which may affect our results of operations, damage others or result in potential litigation. Further, due to the high volume of transactions we process, the large number of customers, partners and counterparties, and the increasing sophistication of malicious actors, a cyber-attack could occur and persist for an extended period of time without detection. We expect any cyber-attack investigation to take substantial amounts of time, and that there may be extensive delays before we obtain full and reliable information. Although we have substantially increased measures to address cybersecurity during the last years and, with the help of service providers, intend to implement security technology devices and establish operational procedures to prevent such damage from time to time, we cannot assure you that these security measures will be successful.

On April 8, 2024, Law No. 21,663 (Cybersecurity Framework Law), which establishes the general regulatory environment and guidelines for private and public entities, was published in the Chilean Official Gazette.

For further information, see “Item 4. Information on the Company—Regulation and Supervision—Reporting of Operational and Cybersecurity Incidents and Cybersecurity Framework Law.”

As a financial institution, we are subject to reputational risk that could materially affect our results of operations or financial condition.

Corporate reputation is a crucial competitive advantage for us, as it allows us to attract and retain customers, appeal to investors, and avoid employee attrition. Also, reputation is a key element in banking since access to funding is driven by the confidence of depositors and the opinion of ratings agencies on the value of our franchise. Therefore, any disreputable event, including employee misconduct, legal proceedings, failure to comply with regulatory requirements, regulatory sanctions, failure to deliver minimum standards of service quality, unethical behavior by our staff or involvement in political issues or public scandals (or gossip related thereto), complaints filed by customers or non-customers, failure to detect or prevent illicit activities by our customer through the use of the products or services we provide, failure to comply with anti-money laundering regulatory guidelines, fake news or alleged issues about us, our senior management, members of our board of directors, or the projects, business activities or customers financed by us, or our operations in social media could damage our reputation and produce significant harm to our results of operations or financial condition. Furthermore, our reputation is highly aligned with the reputation of the banking industry in which we participate and, therefore, actions by other providers of financial services or the banking industry could also harm our own reputation.

Similarly, the ability to manage potential conflicts of interest has become an increasingly important factor for our business given our widespread operations in many economic sectors with diverse third parties. Accordingly, the failure to address –or even the perceived failure to address– conflicts of interest could affect the willingness of customers and investors to work with us or could lead to legal actions against us. To address and avoid these potential events, we strive to improve our corporate governance standards by detecting potential failures and adopting world-class principles and procedures. Nevertheless, we cannot assure you that we will not face reputational events in the future that could harm our prospects or the value of our franchise. For more information on corporate governance, see “Item 6. Directors, Senior Management and Employees—Board Practices.”

Despite our policies and procedures to detect or prevent money laundering and other financial crime activities, we may not be able to fully detect them or on a timely basis.

We are subject to many anti-money laundering (“AML”), anti-terrorism, anti-bribery and corruption laws and regulations. Furthermore, due to our relationship with Citigroup, we have implemented similar AML policies that such bank has implemented which, in cases, are stricter than those applicable to Chilean banks.

We constantly update our policies and procedures for the purpose of timely detection and the prevention of the use of our banking network for money laundering and other criminal activities. Nevertheless, we are aware that new technologies, such as cryptocurrencies and innovative payment methods, could limit our ability to track the movement of funds.

Many threats can never be fully eliminated, and there will be instances where we may be used by other parties to engage in money laundering and other illegal or improper activities. Moreover, we rely on our employees to assist us by spotting such activities and reporting them, and our employees have varying degrees of experience in recognizing criminal tactics and understanding the level of sophistication of criminal organizations. Also, we conduct AML training programs for our employees on a regular basis to enable them to adequately detect and report suspicious transactions to our AML team, to allow conduct subsequent proper investigation from law enforcement agencies. If we are unable to apply the necessary scrutiny and oversight, or to fully comply with applicable laws, regulations and expectations, our regulators and relevant law enforcement agencies have the ability and authority to impose significant sanctions, fines and harsh penalties on us.

There are laws, regulations and policies that require us to, among other things, conduct full customer due diligence (including, but not limited to, sanctions and politically-exposed person screening), keep our customer, account and transaction information updated and, at the same time, implement and develop an array of policies and procedures to prevent the facilitation of financial crime. In addition, we have policies and procedures to reasonably assure compliance with legal requirements and policies; however, our ability to comply thereto depends on improving detection and reporting capabilities and reducing variation in control processes and oversight accountability. The latter requires us to implement and enhance our business with effective controls and monitoring. We are also aware that financial crime is permanently evolving and is subject to increasingly stringent regulatory oversight and focus. This requires proactive and adaptable responses from us to deter threats and criminality effectively and in a timely fashion. On September 1, 2024, certain provisions of Law No. 21,595 regarding criminal liability for legal entities became effective, which widened the list of potential crimes that may subject companies to liability. For more information on this matter see “Item 4. Information on the Company—Regulation and Supervision—Economic Crimes Law.” In 2025, to address the challenges associated with Law No. 21,595, we continued strengthening the Bank’s Crime Prevention model and focused on dissemination, training and awareness-raising on risky behavior and compliance with internal guidelines in order to ensure a comprehensive understanding of employees on these matters. Also, as a result of the changes introduced by Law No. 21,595, which replaced the optional “certification” of the Crime Prevention Model with “independent periodic assessments” as an integral part of the model, we carried out a comprehensive review of the Bank’s Crime Prevention model, which enabled us to reaffirm its adequacy in terms of implementation and operation.

The reputational damage to our business and brand could be severe if we were found to have breached AML, anti-bribery and corruption or sanctions requirements. Our reputation could also suffer if we are unable to protect our customers’ bank products and services from being used by criminals for illegal or improper purposes. Any such risks could have a material adverse effect on our results of operation, financial condition and prospects.

Risks Relating to Chile

Our growth and profitability depend on the level of economic activity in Chile.

Our core business and transactions are with customers doing business in Chile. Accordingly, our ability to grow our business volumes and results of operations, as well as enhance our financial condition, in general, depends on the dynamics of the Chilean economy or the effects of economic developments in other countries affecting Chile, and specific macroeconomic variables such as inflation, unemployment, interest rates, consumption and private investment. In the past, global events, such as the 2008 subprime crisis and the COVID-19 pandemic, have dramatically affected economic growth in developed countries, as well as in Chile where a subsequent slowdown in the local banking industry was observed due to lower levels of consumption and deteriorated asset quality prompted by unemployment and financial stress experienced by certain industries. After experiencing the shaking effects of the COVID-19 pandemic, the Chilean economy showed a strong recovery in 2021. In 2022, the Chilean economy followed similar trends when compared to the global economy, characterized by a moderation in GDP growth, higher inflation, and fiscal and monetary policy adjustments.

In 2023, the Chilean economy continued to slow down steadily and experienced a 0.7% GDP growth as compared to 2022. This performance was primarily driven by an annual contraction of 4.7% in household consumption and a modest expansion of 0.3% in private investment, following the adjustment process of the economy after a period of significant growth in 2021. The decrease in household spending was primarily produced by: (i) tightening monetary policy deployed by the Central Bank to control inflation that resulted in higher-than-normal interest rates throughout the year, as evidenced by a monetary policy interest rate that evolved from 11.25% in December 2022 to 8.25% in December 2023, and (ii) the extinction of the liquidity excess seen in the economy in previous years, as a result of pension fund withdrawals during the COVID-19 crisis, which mostly affected individuals. In a similar fashion, the contraction in private investment was primarily prompted by a business sentiment that remained in negative territory all through 2023, as a result of uncertainties generated by: (i) the second constitutional process that concluded with a national referendum held on December 17, 2023 by which the Chilean population rejected the new constitution draft, (ii) diverse reforms sponsored by the current administration that pursue to introduce material changes in key economic fields, such as the pension system, the healthcare system and the tax system, (iii) lengthy approval processes for large-scale investment projects, and (iv) interest rates that remained high, which increased financing costs for projects and capital expenditures. On the other hand, fiscal spending recorded a moderate annual increase of 2.3% in 2023, as a result of the government attempts to improve the fiscal balance after periods of higher-than-expected spending intended to cover social needs. All of these factors were coupled with an improved balance of trade (exports minus imports).

In 2024, the Chilean economy performed in line with its growth potential (as measured by the Finance Ministry) by recording a 2.8% GDP expansion, driven by a recovery in household consumption that increased by 1.1% on an annual basis, an annual expansion of 2.8% in fiscal spending, and an improved trade balance due to a 7.2% increase in exports in 2024 compared to a 2.1% increase in imports. Annual consumption improvement is consistent with: (i) an inflation rate that is gradually returning to the Central Bank’s two-year target range, though staying slightly above the upper limit, as reflected by a 12-month CPI variation of 4.5% in 2024, (ii) lower short-term borrowing costs associated with the easing cycle the Central Bank continued to deploy during the year by lowering the reference interest rate from 8.25% in December 2023 to 5.0% in December 2024, and (iii) an improved labor market as evidenced by an unemployment rate that averaged 8.5% in 2024 compared to 8.7% in 2023. These positive figures were to some degree offset by an annual contraction of 1.6% in private investment, which was particularly caused by a marked decline in capital expenditures in machinery and equipment, due to: (i) a business sentiment that remained pessimistic in relation to the local economic outlook, as a result of the uncertain outcome of pending reforms, such as in the pension fund system and the tax system, (ii) the deteriorating financial condition of some companies in the real estate and construction sectors, given particular dynamics affecting these industries, such as long-term interest rates that remained above the levels seen in the 2010 decade and restricted credit access for individuals, the end of certain tax benefits for residential construction and soaring costs due to the impact of cumulative inflation.

During 2025, even though the Chilean economy showed some signs of recovery and normalization of key market drivers, particularly by the end of the year, GDP only grew by 2.5%, aligned with growth potential. Unlike previous years, private investment (gross fixed capital formation) performed above expectations by growing 7.0% in real terms. Additionally, household consumption and fiscal spending grew by 2.7% and 3.0%, respectively, and the trade balance decreased as a result of a 10.5% increase in imports and a 4.6% increase in exports. According to the Central Bank, growth in private investment was primarily steered by specific large-scale projects undertaken in the mining and the energy sectors rather than benefiting all industries and some positive externalities resulting in more dynamism in the construction sector and the engineering services industry. Despite certain positive indicators, except for the mining industry, overall business sentiment in the local economy remained negative as measured by the Monthly Business Sentiment Index “IMCE” (Índice Mensual de Confianza Empresarial) and reported by the Central Bank. The IMCE results are partly explained by economic and political uncertainty, and delays in the approval of large-scale processes. On the other hand, the expansion in private consumption was due to: (i) the decline in the inflation rate that –measured as CPI variation– reached 3.4% in 2025, which benefits individuals’ purchasing power, (ii) a decline in borrowing costs, mainly due to the decrease in the monetary policy interest rate from 5.0% in December 2024 to 4.5% in December 2025, (iii) an unemployment rate that, instead of increasing in 2025, remained at the average level of 2024, and (iv) household expectations on the economic outlook that, despite remaining negative, displayed a steady upward trend, particularly over the second half of 2025.

Additionally, social and political developments occurring in Chile could affect both consumer confidence and business sentiment, which may in turn result in lower economic growth potential in the long-term, as well as subdued economic activity in medium-term and lowered demand for loans and banking services. For example, the inability to reach political consensus on addressing diverse issues, including: (i) reforms affecting crucial economic and social fields, (ii) an effective control on immigration and criminality, and (iii) an adequate balance between environmental care and economic growth that permits clearer and swifter approval processes for high-impact investment projects, among others, may result in increased uncertainty that could translate into higher long-term interest rates, higher inflation, economic slowdown and increased unemployment, which could affect our cost of funds, labor costs, net interest margins, results of operations, business volumes and financial condition.

Likewise, international conflicts or changes in foreign policy by leading economies could affect the Chilean economy, one of the most open in the world. In that regard, disruptions in global trade resulting from measures adopted by the current U.S. administration, retaliatory measures by the affected countries, the continuation of conflicts in Europe and the Middle East, or the sudden escalation of international conflicts such as the events involving the United States, Israel, Iran and other countries of the Middle East which escalated in March 2026 could result in lower economic growth in Chile that may adversely impact the dynamism of the banking industry, our business growth and results of operations.

Therefore, we cannot assure you that the local economy will grow in the coming years, as it has in the past, or that developments affecting the Chilean economy and the local banking industry will not materially affect our business, financial condition or results of operations. For more information, see “Item 5. Operating and Financial Review and Prospects—Trend Information,” “Item 3. Key Information—Risk Factors—Pandemics, epidemics and other health events will affect both the global and the Chilean economy, our business or results of operations and could affect our financial condition” and “Item 3. Key Information—Risk Factors— Developments in international financial markets may adversely affect the market price of the ADSs and shares.”

Any downgrade in Chile’s or our credit rating could increase our cost of funding, affecting our interest margins, results of operations and profitability.

Our credit ratings determine the cost and the terms upon which we are able to obtain funding in the ordinary course of business. Rating agencies regularly evaluate us by considering diverse factors, including our financial strength, capital adequacy, the business environment and the economic backdrop in which we operate. Thus, methodologies used by rating agencies evaluate Chile’s sovereign debt ratings when determining our ratings. In addition, from time to time, rating agencies review their methodologies, which in some cases could result in adjustments to Chile’s sovereign debt prevailing credit ratings or those of our debt. In March 2021, Standard & Poor’s Ratings Service (“S&P”) downgraded Chile’s sovereign credit rating from “A+” to “A” while modifying the credit outlook from negative to stable due to the expected negative effects of the COVID-19 pandemic and social demands on Chile’s fiscal deficit in the long-run. Given this rating action S&P also downgraded four local banks (excluding us) by one notch, while maintaining the negative outlook for the whole banking industry (including us), except for Banco Estado (a state-owned bank) that received a stable outlook. However, in June 2021, S&P improved the outlook for two banks from negative to stable, excluding us. Moreover, in September 2022, Moody’s downgraded Chile’s sovereign credit rating from “A1” to “A2” with stable outlook, which also led Moody’s to downgrade three local banks (including us) by one notch from “A1” to “A2,” though improving our intrinsic (BCA) rating from “Baa1” to “a3.” In October 2023, S&P kept the Chile’s sovereign credit rating at “A,” but revised the outlook from stable to negative, due to the potential effect of weaker political consensus on the country’s political and economic agenda on economic growth potential and social welfare as well as fiscal and external balances. Following this rating action, S&P revised the outlooks for us and another Chilean banks from stable to negative while maintaining credit ratings. On the other hand, during 2023, 2024 and 2025, Moody’s maintained Chile’s sovereign credit rating at A2 and outlook unchanged as stable, also keeping ratings and outlooks for local banks. On October 15, 2024, S&P maintained the credit rating for Chile’s sovereign debt at “A” while improving the outlook from negative to stable, which consequently resulted in an improved outlook for two local banks (excluding us). Subsequently, on October 28, 2024, S&P revised the outlook on us and four other local banks from negative to stable while reaffirming ratings. On October 23, 2025 S&P reaffirmed ratings and outlooks for Chile’s sovereign debt. Also, during 2025 S&P reaffirmed credit ratings and outlooks for all the Chilean banks under coverage (including us), except for one local bank that received an outlook improvement from stable to positive. While Chile’s current long-term debt credit ratings remain investment grade, these credit ratings may deteriorate further and adversely affect our credit rating.

Any downgrade in our debt credit ratings could result in higher borrowing costs for us, while requiring us to post additional collateral or take other actions under some of our derivative and other contracts and limit our access to debt and capital markets. All of these factors could adversely impact our commercial business by affecting our ability to: (i) sell or market our products, (ii) issue long-term debt in Chile or abroad, (iii) retain customers who need minimum ratings thresholds to operate with us, (iv) maintain derivative contracts that require us to have a minimum credit ratings, and (v) enter into new derivative or other contracts, which could impact our market risk profile, among other effects. Any of these factors could have an adverse effect on our liquidity, capital adequacy, results of operations and financial condition.

Due to: (i) the volatility in the financial markets and concerns about the soundness of developed and emerging economies, (ii) potential changes to be introduced in the fiscal policy or government spending in the short- and the long-term by the current or future government administrations in Chile, (iii) further social demands leading to increasing fiscal spending, (iv) unwillingness or inability to reach political consensus on economic and social reforms in a timely and effective manner, (v) deterioration in Chile’s terms of trade following the evolution of energy and commodity prices, (vi) reforms to be proposed or introduced by the current or future administrations to modify the characteristics of the current economic and financial system, (vii) the impact of the revised foreign trade policy by the current United States administration on Chilean exports, and (viii) the effects that current or potential geopolitical worldwide conflicts and global trade tensions may have on the local economy, we cannot assure you that rating agencies will maintain our and Chile’s sovereign debt current ratings and outlooks.

Changes in tax law could adversely affect our net income and could also result in higher taxes on distributions to our foreign shareholders.

Over the last decade, there have been various changes in, and attempts to modify, the Chilean tax regime, which resulted in reforms enacted in 2014, 2016, 2020, and 2022. Among other things, these reforms have: (i) changed the local tax system from an integrated to a semi-integrated one, (ii) increased the statutory corporate tax rate for companies to 27%, (iii) risen taxes for higher income individuals through new tax brackets and additional property taxes, (iv) reduced taxes for SMEs, (v) levied VAT on services that were not formerly taxed, such as those provided online, (vi) removed or limited certain tax exemptions, and (vii) strengthened tax enforcement in order to reduce tax evasion and tax avoidance. Some of these elements also affected the taxes paid on dividend distributions by local and foreign investors.

The current Chilean administration announced its intention to introduce further temporary or permanent modifications to the Chilean tax system to promote private investment and economic growth in Chile over the medium term. These changes are part of a broader package that also includes non-tax matters, which was presented by the Finance Ministry to Congress through the “National Reconstruction and Economic & Social Development” bill on April 22, 2026 for discussion. Among the main topics related to the Chilean tax system, this bill includes: (i) a gradual reintegration of the Chilean tax system over a four-year period to allow companies’ shareholders to use 100% of the taxes paid by the company as a tax credit for personal taxation purposes, instead of the current 65% tax credit permitted under the semi-integrated regime for larger companies, (ii) a gradual reduction of the statutory corporate tax rate for companies over a four-year period, from the current 27% to 25.5% for fiscal year 2027, 24.0% for fiscal year 2028, and 23.0% for fiscal year 2029 onwards, (iii) a substitutive tax rate of 10% on the distribution of retained earnings accumulated in the Fund of Taxable Earnings (“Fondo de Utilidades Tributables”) for which no associated tax credits may be claimed, (iv) the elimination of the current 10% flat tax rate levied on capital gains from trading of highly-traded stocks, (v) tax invariability over a 25-year period for investment projects above U.S.$50 million, (vi) the introduction of a tax benefit for companies –regardless of their size– aimed at promoting formal employment through a tax credit that may be deducted from monthly provisional tax payments or VAT payments, of up to 15% of salaries ranging from UTM 7.8 to UTM 12.0 (approximately Ch$542,428 to Ch$834,504 as of December 31, 2025), (vii) a VAT exemption for 12 months on the sale of new properties in order to reactivate the construction sector, (viii) extension of the existing tax exemption on rental income from up to two properties, by introducing a flat tax rate of 5% on rental income derived from a third property, (ix) a temporary reduction of 50% in taxes levied on donations, and (x) a temporary 10% tax rate levied on the repatriation of funds, investments and savings held by Chilean taxpayers abroad for 12 months in order to promote private investment in the country. As of the date of this annual report, this bill is in the very first legislative stage and, as such, we cannot yet determine whether all or part of the topics covered by this bill, if enacted, would have a material effect on our business, results of operations or financial condition. Nevertheless, should the reduction of the statutory corporate tax rate be passed, we would expect one-time impacts on our income tax expenses during the years of gradual adoption as a result of our deferred tax assets and liabilities, which cannot be reasonably estimated at this time.

For more information on the main topics addressed by these reforms see “Item 4. Information on the Company—Regulation and Supervision— Modifications to Tax Legislation” and “Item 10—Additional Information—Taxation—Chilean Tax Considerations.”

Climate change presents various financial and non-financial risks to us and our customers that are not directly observable and, therefore, are difficult to mitigate in advance.

Climate change presents various financial and non-financial risks to us, our customers, business counterparties and suppliers. It poses both immediate and long-term risks, which are expected to increase over time. Climate risks may be of two types: (i) physical risks (related to the direct physical effects of climate change), and (ii) transition risks (related to regulatory, market, technological, stakeholder and legal changes from a transition to a low-carbon economy).

Physical risks from climate change include acute risks, such as more intense storms and floods, as well as consequences of chronic changes in climate, like rising sea levels, prolonged droughts, unexpected floods, wildfires, systemic changes to geographies and any other resulting in population migration. Such physical risks could have adverse financial, operational, and other impacts on us, both directly on our infrastructure, business activity and operations, and indirectly as a result of impacts to our customers, suppliers and other counterparties. These impacts may include destruction, damage or impairment of properties, infrastructure and other fixed-assets, business continuity breaches, massive staff absence due to inability to reach their workplace, disruptions to supply chains, reduced availability of goods or increased cost of insurance policies. Physical risks can also impact the credit risk of our loan portfolio due to damage to customers’ assets pledged as collateral to us, adverse effects on the credit condition of our investment portfolio’s counterparties or increased liquidity risk if physical destruction produces liquidity shortage in capital markets due to disruptions in communication networks, among other sources of financial risks.

Transition risks may arise from changes in regulations or market preferences toward low-carbon industries or sectors, which in turn could have negative impacts on asset valuation, results of operations or our customers’ reputation that may negatively affect their financial condition and payment capacity while affecting our own reputation for doing business with them. Failure to adequately recognize transition risks in developing and executing our business strategy could lead to market share loss, decreased revenues and higher expected credit losses and increased cost of funds. Moreover, banking regulators and others are increasingly focusing on the issue of climate risk at financial institutions, both directly and in relation to their customers, which could translate in increased regulatory requirements on diverse matters. Legislative and regulatory changes and uncertainties regarding climate-related risk management and disclosures are likely to result in higher risks and costs for us from the regulatory, compliance, reputational and other perspectives.

Even as some regulators seek to require disclosure of climate-related information, our ability to comply with such requirements and conduct more robust climate-related risk analyses may be hampered by lack of information and reliable data. Data on climate-related risks is still limited in availability, often based on unverified figures or sources, collected and reported on a lag, and variable in quality. Likewise, since modeling capabilities to analyze climate-related risks and their impacts to financial institutions are in first stages of development, and to date those tools are still under continuing improvement and revision, the severity of the impacts of climate change on banking business may not be predictable and, therefore, may challenge the effectiveness of our risk management strategies to mitigate our climate risk exposure. Thus, our failure to detect the aforementioned conditions or to identify other risks related to climate change could materially affect our financial condition, business and results of operations.

Currency fluctuations could adversely affect our results of operations, the value of our ADSs and any distributions on the ADSs.

The Chilean Government’s economic policies and any future changes in the value of the Chilean peso with respect to the U.S. dollar could affect the dollar value of our common stock and our ADSs. Given the floating exchange rate regime that exists in Chile, the Chilean peso has been subject to large fluctuations in the past and this trend could occur again in the future. According to information published by the Central Bank (“Dólar Observado,” which differs from exchange rate of accounting representation or market exchange rate), between December 31, 2024, and December 31, 2025, the value of the U.S. dollar relative to the Chilean peso decreased by approximately 8.2%, as compared to the increase of 12.2% recorded in the period from December 31, 2023 to December 31, 2024. Chilean trading in the shares underlying our ADSs is conducted in Chilean pesos. Cash dividends associated with our shares of common stock are received in Chilean pesos by the depositary, which then converts such amounts to U.S. dollars at the then-prevailing exchange rate for making payments in respect of our ADSs. If the value of the U.S. dollar increases relative to the Chilean peso, the dollar value of our ADSs, and any distributions to be received from the depositary, will decrease. In addition, the depositary will incur customary currency conversion costs (to be borne by the holders of our ADSs) in connection with the conversion and subsequent distribution of dividends or other payments. For more information, see “Item 10. Additional Information—Exchange Controls.”

Since we manage assets and liabilities denominated in foreign currency, our results of operations may be affected by fluctuations in the exchange rates between the Chilean peso and the U.S. dollar, or the Chilean peso in relation to other currencies, despite our policy and Chilean regulations related to the general avoidance of material exchange rate mismatches. In order to reduce the effect of exchange rate mismatches, we enter into foreign exchange derivative transactions, including both hedge accounting derivatives and trading derivatives not classified as hedge accounting, that hedge most of our exposure to foreign currency. As of December 31, 2025, our foreign currency-denominated liabilities and Chilean peso-denominated liabilities, which contain repayment terms linked to changes in foreign currency exchange rates, were exceeded by our foreign currency-denominated assets and Chilean peso denominated assets, which contain repayment terms linked to changes in foreign currency exchange rates, by an amount of Ch$10,495 million (amounting to approximately U.S.$11.7 million as of December 31, 2025), or 0.28% of our paid-in capital and reserves.

We may decide to change our policy regarding exchange rate mismatches. Regulations that limit such mismatches may also be amended or eliminated by regulatory institutions. Higher exchange rate mismatches will increase our exposure to the depreciation of the Chilean peso, and any such depreciation may impair our capacity to service foreign-currency obligations and may, therefore, materially, and adversely affect us, our financial condition and results of operations. Additionally, the economic policies of the Chilean Government and any future fluctuations of the Chilean peso, with respect to the U.S. dollar, could adversely affect our financial condition and results of operations.

Chile has corporate disclosure standards different from those you may be familiar with in the United States.

Chilean disclosure requirements for publicly listed companies differ from those in the United States in some significant respects. In addition, although Chilean law imposes restrictions on insider trading and price manipulation, the Chilean securities markets are not as highly regulated and closely supervised as the U.S. securities markets. Accordingly, the information available to you regarding our corporation will not be the same as the information available to shareholders of a U.S. company. For more information, see “Item 16G. Corporate Governance.”

Our exemption as a “foreign private issuer” from certain rules under the U.S. securities laws results in less information about us being available to investors than for U.S. companies.

As a “foreign private issuer” in the United States, we are exempt from certain rules under the Exchange Act, including certain disclosure obligations and procedural requirements for proxy solicitations under Section 14, the “short-swing” profit recovery provisions of Section 16, the requirement to file periodic reports and financial statements as frequently or as promptly as U.S. domestic issuers, and compliance with Regulation FD. In June 2025, the SEC issued a concept release soliciting public comment on potential changes to the definition of “foreign private issuer” under U.S. securities laws. If we were to lose our foreign private issuer status, we would be required to comply with all disclosure and procedural requirements applicable to U.S. domestic issuers, which would significantly increase our legal, accounting, and other expenses.

In addition, the recently enacted “Holding Foreign Insiders Accountable Act” extends Section 16 reporting requirements to directors and officers of foreign private issuers. However, on March 5, 2026, the SEC issued an order exempting Section 16(a) reporting by directors and officers of foreign private issuers that are both (i) organized or incorporated in a specified “qualifying jurisdiction,” including the Republic of Chile, and (ii) subject to reporting obligations under a specified “qualifying regulation,” such as current regulations in force in the Republic of Chile. As a result, our directors and officers are currently exempt from Section 16 reporting requirements but remain subject to reporting requirements in the Republic of Chile. We plan to post English translations on our website of reports filed by our directors and officers with the Chilean regulator, in accordance with such SEC exemptive order

Chilean law may provide shareholders with fewer and less well-defined rights.

Our corporate affairs are governed by our bylaws (estatutos) and the laws of Chile. Under such laws, our shareholders may have fewer or less well-defined rights than they might have as shareholders of a corporation incorporated in a U.S. jurisdiction. For example, our shareholders would not be entitled to appraisal rights in the event of a merger or other business combination undertaken by us.

Our business growth, asset quality and profitability may be affected by political, legal and economic uncertainty, as well as social developments in Chile.

Our operations are highly dependent on the Chilean political and social environment, as most of our customers and borrowers do business in Chile. Thus, our results of operations could be negatively impacted by unfavorable political and diplomatic developments, social instability or unrest, as well as dramatic changes in public policies, including expropriation, nationalization, international ownership legislation, interest rate caps and tax policy.

The social unrest that occurred at the end of 2019 led to increased volatility in the Chilean stock market, with a significant correction of stock prices and a sharp depreciation of the Chilean peso against the U.S. dollar, both of which were further affected by the COVID-19 outbreak in March 2020. Furthermore, share prices of local banks, including ours, suffered significant declines in the market due to both events, while bond spreads of local banks increased.

In response to the social unrest, the Chilean Government announced a social agenda intended to increase basic pensions, expand social health coverage, and reduce and stabilize the price of some public services. To fund these initiatives, the Chilean Government and the opposition at that time agreed on amendments to certain tax legislation that was passed by the Chilean Congress and enacted on January 29, 2020. See “Item 5. Operating and Financial Review and Prospects—Operating Results—Income Tax and Item 10. Additional Information—Taxation—Chilean Tax Considerations.”

Another measure agreed by the government and Congress to tackle the political crisis of October 2019 was a process to draft a new constitution to replace the one dating from 1980. This process lasted approximately two years, and the first project of new constitution was rejected by a relevant majority of 61.86% of the Chilean voters in a national referendum held on September 4, 2022. Following this outcome, the Chilean congress agreed to start over a second constitutional process by setting certain basic principles and standards that the new constitution must incorporate. The new draft was voted and once again rejected by a majority of 55.79% in a national referendum held on December 17, 2023. Notwithstanding this evidence, we cannot rule out that new attempts to change the prevailing constitution will not take place in the future. Accordingly, we cannot assure you that economic growth, asset quality, profitability and investment in Chile, and consequently our results of operations or financial condition, will not be adversely affected by political, legal and economic uncertainty.

Additionally, in recent years we have seen a surge in certain violent crimes and insecurity in Chile, some of them related to drug trafficking and organized crime, which have raised concerns among the population and the Chilean Government. Accordingly, Congress has approved new legal bodies to fight criminality, while the government is implementing focused plans to reinforce public security at Chilean borders and in specific cities and districts with high criminality indices. Similarly, the construction of new penitentiary locations is under evaluation and discussion by political coalitions.

On December 14, 2025, José Antonio Kast, a conservative candidate backed by far-right and center-right parties, won Chile’s presidential run-off election against Jeannette Jara, a member of the Communist Party and the candidate of a left-wing coalition. President Kast, who obtained approximately 58% of votes, took office on March 11, 2026, succeeding President Gabriel Boric. President Kast has announced plans to implement significant changes to the current political, social and economic frameworks, with a strong emphasis on public security and law enforcement policies as well as reforms to boost economic growth. In this regard, the new administration’s priorities include strengthening border control to address illegal immigration, imposing harsher penalties for organized crime, creating maximum-security prisons, strengthening prison security conditions, and combating illicit trade. From the economic perspective, the new administration is expected to: (i) reduce fiscal spending in order to return to a structural fiscal balance, (ii) reduce the tax burden on individuals and businesses in order to promote economic activity, (iii) carry out a comprehensive revision of red-tape practices by accelerating approval processes for investment projects while reducing the possibility of government representatives making discretionary decisions, and (iv) promote deregulation measures in diverse economic activities. However, at this point, there is uncertainty as to which specific measures will ultimately be proposed and adopted, the timing of any such actions, and whether President Kast’s administration will be successful in obtaining the legislative and regulatory approvals needed to implement them, all of which could affect their implementation and impact. Also, it remains to be seen how effective these measures will be in stimulating economic growth and addressing security concerns in Chile.

Accordingly, we cannot assure you that the social unrest will not reappear in Chile and that violent crimes and insecurity will not further increase in the future and, therefore, we can offer no assurance that it will not have a negative impact on economic growth, the overall Chilean business environment and our results of operations and financial condition. We are not able to currently predict the effects that any future policies or reforms in other economic and social fields may have on the Chilean economy, the banking activity and our business, financial condition and results of operations.

Reforms to labor laws, the pension system and the healthcare system as well as labor strikes or slowdowns could adversely affect our results of operations.

We are a party to collective bargaining agreements with various labor unions to which most of our employees belong. Therefore, disputes regarding the terms of these agreements, or our potential inability to negotiate acceptable contracts with these unions, could result in strikes, work stoppages, or other slowdowns by the affected workers, among other things. If unionized workers were to engage in a strike, work stoppage, or other slowdown, or other employees were to become unionized, we could experience disruption of our operations or higher ongoing labor costs, either of which could have a material adverse effect on our results of operations. See “Item 6. Directors, Senior Management and Employees—Employees.”

Current labor legislation defines a company’s minimum services and emergency teams by the applicable labor regulator after negotiations between a company and each labor union. As such, minimum services refer to those functions of a company which must continue to be provided during a strike because they have been determined to be essential to protect assets and facilities, to prevent accidents, guarantee public utility services, meet the basic needs of the population and prevent environmental damage or harm to health. A company’s emergency teams are made up of workers assigned by each union to fulfill such minimum services. Therefore, in the event of futures strikes, we could face operational disruptions due to an inadequate number of minimum services and insufficient staff for the emergency teams.

Over the last years, diverse laws related to the labor market have been enacted. In 2023, for instance, new legislation for the treatment of working hours reduced the workweek from 45 to 40 hours over a three-year period starting in 2024. Accordingly, the workweek was reduced to 44 hours in April 2024, to 42 hours in April 2026 and will be reduced to 40 hours in April 2028. For this reason, in 2023, based on the experience of diverse pilot projects, we adopted a new framework, with no material effect on our labor costs or the service quality delivered to our customers. Another law enacted in 2023 increased the monthly statutory gross minimum wage (before social security contributions and taxes), under which the minimum wage was set to Ch$500,000 starting on July 1, 2024 (approximately U.S.$555 per month as of December 31, 2025). The same law considered an automatic adjustment, based on CPI variation between July and December 2024, starting in January 2025, while further adjustments were introduced by another law enacted in 2025. Also, in January 2024, a new law went into effect setting forth certain teleworking rights for workers who care for children and disabled or dependent people regardless of their age, among other matters. From the perspective of workplace harassment, in August 2024, a new legal framework went into effect, which aims to prevent workplace harassment, sexual harassment and violence at the workplace, which required companies both to define a solid framework in order to prevent workplace harassment and set adequate and transparent procedures in order to investigate the occurrence of such events within the companies while protecting the dignity, integrity and confidentiality of potential victims and, if proved, proceed in accordance with the legal framework. In January 2026, the former government submitted a bill to Congress, aimed at introducing a multi-sector collective bargaining system in Chile, which would mean a significant change from the current scheme utilized in Chile. However, in March 2026, the bill was withdrawn by the new administration. In addition, as of the date of this annual report, a bill intended to implement a universal childcare benefit in order to promote women participation in the labor market, which would be financed by employers, is pending. Although the current administration believes this should be a tax-based social benefit, no amendments have been submitted to Congress yet. Given the wide array of changes introduced in labor matters, we cannot assure you that they will not have an adverse impact on us by translating into increased labor costs, lowered service quality or productivity in case of disruption of internet connection for the staff allowed to work remotely, increased expenses to address non-monetary requirements set by the laws or changes in the organizational climate, all of which could negatively impact our results of operations and profitability. For more information, see Item 4. Information on the Company—Regulation and Supervision—Labor-related Laws.”

In recent years, the Chilean Government has presented several bills with the purpose of improving the Chilean pension system. On March 26, 2025, Law No. 21,735 was enacted, which considers, among other changes: (i) an increase of 4.5 percentage points in the contribution to individual pension fund accounts to be financed by employers, from the current 10% contributed by each worker, to be managed by the current pension fund administrators (“AFP”) with the establishment of the generational funds, (ii) a further 1.5 percentage points of contribution charged to the monthly salary to be financed by the employer, which will contribute to a new fund managed by a special purpose vehicle that will reimburse funds to the contributor after 20 years and is intended to increase pensions for current pensioners, (iii) one percentage point to be financed by the employer, which is intended to improve current and future pensions for women by addressing gender disparities in the contribution to the pension fund system, and (iv) the possibility of carrying out public bidding processes from time to time for part of the pension funds (about 10% each time) in order reduce fees and commissions charged to contributors and pensioners by pension fund managers. Several of the provisions of this law are still pending to be implemented. Although we expect this reform to result in increased labor costs in the medium term, we do not expect a material impact on our results of operations or financial condition. From the funding perspective, the funds available in the pension fund system should increase due to this reform in the long-term. However, the new framework for the pension fund industry could result in our inability to raise funds from pension fund managers as we have in the past if profitability for pension fund managers declines significantly due to the introduction of the bidding process. As a result, there could be further restrictions to our access to long-term financing, compelling us to seek alternative funding sources in Chile and abroad, which may bear higher interest rates and include higher transactional costs, and, therefore, may have an adverse effect on our net interest margin, results of operations and financial condition in the long-term. Also, in the past, pension fund withdrawals were approved by the Chilean Congress in order to assist people to overcome the financial aftermath of the COVID-19 pandemic. In 2025, no pension fund withdrawals were approved, but there is no certainty that members of Congress will not propose similar initiatives in the future. Any such withdrawals, if approved, could have a material adverse effect on our financial condition, liquidity levels, and our ability to obtain funding from pension funds.

Pandemics, epidemics and other health events will affect both the global and the Chilean economy, our business or results of operations and could affect our financial condition.

The spread of illnesses, epidemics, or pandemics such as the COVID-19 has caused, and could in the future cause, quarantines, shutdowns, reduction in business activity and financial transactions, labor shortages, supply chain interruptions and overall economic and financial market instability in many countries, including Chile, with subsequent adverse effects on our business growth, results of operations or financial condition. If new variants of viruses appear to be resistant to the currently existing vaccines or other kind of viruses with similar adverse effects spread, the health authority could impose restrictions, such as country-wide lockdowns, which could result in a shutdown involving the Bank, our subsidiaries and some or all of our customers operations or the services provided by our suppliers, such that we would be unable to meet the needs of our customers for an unknown period of time, which could adversely affect our results of operations by reducing revenues, decreasing our collection capabilities and increasing operating expenses.

The spread of new variants of viruses or the appearance of other kinds of diseases or viruses that threaten to become a pandemic continues to result, from time to time, in increased volatility in both the local and the international financial markets and economic indicators, such as exchange rates, interest rates, credit spreads and commodity prices. Any shocks or unexpected movements in these market factors could result in financial losses associated with our fixed-income trading portfolio, trading derivatives or financial assets measured at fair value through other comprehensive income, which could then cause deterioration of our financial condition or limitations to meet our liabilities. Furthermore, market fears could translate into liquidity constraints and reduced access to funding in both the local and the international markets, negatively affecting our net interest margin and net income. Adverse changes in the economy may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which could have an adverse impact on our earnings. Even thoughthe Chilean financial authorities made various decisions in order to ensure liquidity within the Chilean financial system to overcome the impact of the COVID-19 pandemic on the local economy, we cannot assure you that these measures will be replicated if a new pandemic or the spread of other illnesses occur in the future, which could translate into liquidity constraints for the whole banking system, including us. Lastly, contingency plans in order to address health emergency, including remote working arrangements, implementation of alternative offsite locations and so on, could have a negative impact on us in terms of operating expenses, service quality delivered to our customers and lowered net income.

Risks Relating to our American Depositary Shares (“ADSs”)

Our principal shareholders may have interests that differ from those of our other shareholders and their significant share ownership may have an adverse effect on the future market price of our ADSs and shares.

As of April 24, 2026, LQ Inversiones Financieras S.A. (“LQIF”), a holding company beneficially owned by Quiñenco S.A. and Citigroup Chile S.A., holds directly and indirectly approximately 51.15% of the voting rights of our shares. Subject to our bylaws and applicable law, such principal shareholders are in a position to elect a majority of the members of our board of directors and control all matters decided by a shareholder vote, including the approval of fundamental corporate transactions.

Actions taken by our principal shareholders regarding the disposition of the shares or ADSs they beneficially own, or the perception that such actions may occur, may adversely affect the trading price of our shares on the various stock exchanges on which they are listed and, consequently, the market price of the ADSs.

There may be a lack of liquidity and a limited market for our shares and ADSs.

While our ADSs have been listed on the New York Stock Exchange (the “NYSE”) since the first quarter of 2002, there can be no assurance that an active trading market for our ADSs will be sustained. For the year ended December 31, 2025, a daily average volume of approximately 295,445 of our American Depositary Receipts (“ADRs”) and a daily average turnover of approximately U.S.$8.8 million were traded on the NYSE, according to data provided by Bloomberg. Although our shares are traded on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange, the Chilean market for our shares in Chile is small and somewhat illiquid. As of April 24, 2026, approximately 48.85% of our outstanding shares were held by shareholders other than our principal shareholders.

If an ADS holder withdraws the underlying shares from the ADR facility, the small size of the market, its limited liquidity, as well as our concentrated ownership, may impair the ability of the ADS holder to sell the shares in the Chilean market in the amount and at the price and time such holder desires, and could increase the volatility of the price of our ADSs.

ADS holders may be unable to exercise voting rights at shareholders’ meetings and preemptive rights.

ADS holders may exercise voting rights associated with common stock only in accordance with the deposit agreement governing our ADSs. Accordingly, ADS holders will face practical limitations when exercising their voting rights because ADS holders must first receive notice of a shareholders’ meeting from the Depositary and may then exercise their voting rights by instructing the Depositary, on a timely basis, on how they wish to vote. This voting process will necessarily take longer for ADS holders than for direct common stockholders, who are able to exercise their vote by attending our shareholders’ meetings. Therefore, if the Depositary fails to receive timely voting instructions from some or all ADS holders, the Depositary will assume that ADS holders agree to give a discretionary proxy to a person designated by us to vote their ADSs on their behalf. Furthermore, ADS holders may not receive voting materials in time to instruct the Depositary to vote. Accordingly, ADS holders may not be able to properly exercise their voting rights.

Furthermore, the Ley Sobre Sociedades AnónimasNo. 18,046 (the “Chilean Corporations Law”) and the Reglamento de Sociedades Anónimas (the “Chilean Corporations Regulation”) require that whenever we issue new common stock for cash, we grant preemptive rights to all of our shareholders (including holders of ADSs) to purchase a sufficient number of shares to maintain their existing ownership percentage. Such an offering would not be possible unless a registration statement under the Securities Act were effective with respect to such rights and common stock, or an exemption from the registration requirements thereunder were available.

We may choose not to make a registration statement available with respect to the preemptive rights and the common stock, in which case you may be unable to exercise your preemptive rights. If a registration statement is not filed, the depositary will sell such holders’ preemptive rights and distribute the proceeds thereof if a premium can be recognized over the cost of any such sale.

Developments in international financial markets may adversely affect the market price of the ADSs and shares.

The market price of our ADSs and shares may be adversely affected by volatility in international financial markets and unfavorable developments in global economic conditions. The market for Chilean securities and the Chilean economy as a whole are influenced by: (i) economic and market conditions in Chile’s main commercial partners such as the United States, Europe and certain emerging economies, especially Asian countries, (ii) economic as well as political developments in Latin American countries, and (iii) armed conflicts in which some of the Chile’s main trade partners participate or by which they could be affected. Although economic conditions are different in each country, investors’ reactions to specific issues in one country may affect the financial markets in others, including Chile.

After a long period of turbulence and volatility, which began in 2007 with the subprime mortgage crisis, when many U.S. banks and financial institutions disclosed significant write-downs related to their exposure to mortgage-backed securities and other similar financial instruments, the world’s economy began to show a gradual recovery thanks to significant government intervention for important banks worldwide, in order to maintain investors’ and customers’ confidence and to prevent bank runs. At the same time, stricter capital requirements were established for banks around the world, namely the Basel III framework or more recently the Basel IV framework.

During 2020, the COVID-19 pandemic was a principal source of instability for global financial markets, leading to lower valuations in the stock market and decreased liquidity in fixed income markets. In 2021, most of the developed and developing economies recovered from the contraction displayed in 2020, due to aggressive monetary and fiscal packages, resulting in a 6.2% expansion in global GDP. In 2022, however, global GDP grew by 3.5%. This performance was influenced by rising inflation that reached 8.7%, because of the overall increase in fiscal spending during the COVID-19 pandemic, increased liquidity that fostered consumption and the disruption in the supply chain due to geopolitical issues between Russia and Ukraine. Consequently, central banks deployed aggressive monetary contractionary policies that resulted in a sharp increase in short-term interest rates, which had a direct effect on economic performance. In 2023, the global economy evidenced a continuation of the adjustment process. According to the International Monetary Fund (“IMF”), global GDP growth decreased to 3.0% in 2023, due to diverse factors, including: (i) disruptions generated by armed conflicts in Eastern Europe and in the Middle East, (ii) the effect of persistent inflation on purchasing power, and (iii) still elevated short-term interest rates. Nevertheless, according to the IMF, inflation fell to 6.9% in 2023, due to contractionary monetary policies, which also resulted in currency strengthening in developed countries and currency weakening in developing economies.

In 2024, according to the IMF, the global economy recorded a GDP expansion of 3.2% when compared to 2023. This performance was marked by mixed forces, including: (i) lower than expected growth in emerging economies, as reflected by GDP growth rates of 4.8% and 6.5% for China and India, respectively, due to lower consumption and manufacturing (ii) a 0.8% contraction in the GDP of the Euro Zone, due to weakened dynamism in manufacturing and exports, and (iii) a 2.7% economic growth in the United States, supported by steadily increasing consumption. Although most economies managed to reduce inflation, it continued to be a major challenge for central banks that had to maintain reference interest rates high, which negatively impacted on consumption and overall economic activity. For that reason, central banks in developed economies started to gradually ease their monetary strategies only during the second half of the year as other-than-monetary factors continued to put pressure on prices, including fiscal spending and geopolitical conflicts that generated disruption in the global supply chain. As a result, consumption remained subdued in many economies, particularly due to the effect of weak consumer confidence.

In 2025, global economic growth was under pressure due to changes in foreign trade policies across the globe, which threatened international trade agreements in place and amplified the possibility of new inflationary waves and contractionary monetary policies. Thus, global economic activity demonstrated to be resilient, regardless of the persistence of diverse sources of stress. Also, political and social instability in some Latin American countries like Colombia, Venezuela, Ecuador, Argentina and even Chile, as well as some Caribbean countries, has produced migration issues in more stable countries within the region. Moreover, the armed conflict between Russia and Ukraine in Eastern Europe continues to affect international trade and global economic conditions.

Global markets have also been, and may continue to be, adversely affected by the ongoing conflict following the Hamas attack on October 7, 2023, and the subsequent military response by Israel. After an initial agreement in January 2025, as of October 9, 2025, Israel and Hamas entered into a renewed ceasefire agreement calling for a permanent end of the war. However, there are no assurances that such agreement will hold.

Iran also launched direct attacks on Israel in April and October 2024, and in June 2025, Israel launched a preemptive strike on Iranian military and nuclear infrastructure. The United States also conducted strikes on Iranian nuclear facilities in June 2025. Iran responded with drone and missile attacks on Israeli cities and U.S. bases in the region. More recently, on February 28, 2026, the United States and Israel launched a joint military operation against Iran—codenamed "Operation Epic Fury"—targeting the country's leadership, nuclear facilities, missile sites, and security forces, resulting in the killing of Supreme Leader Ayatollah Ali Khamenei and other senior Iranian officials. In retaliation, Iran launched hundreds of ballistic missiles and drones against Israel, United Arab Emirates, Qatar, Bahrain, Saudi Arabia, Kuwait, Oman, Iraq, Azerbaijan, and U.S. military bases in the region. Iran is also believed to have significant influence over extremist groups in the region, including Hamas, Hezbollah, and the Houthis. These proxy organizations have carried out attacks on commercial shipping, critical infrastructure, and civilian targets, further destabilizing the region and disrupting global supply chains. The conflict and negotiations to solve it are ongoing. These ongoing geopolitical tensions, including the potential for military escalation and broader regional conflict, may adversely affect economic conditions and create uncertainty that could negatively impact our business, financial condition and results of operations. In addition, the imposition of new or expanded international sanctions, trade restrictions, or retaliatory measures by affected states could further disrupt international financial markets and our financial performance.

In addition to the ongoing conflict in the Middle East, on January 3, 2026, United States military forces conducted a large-scale operation in Venezuela known as “Operation Absolute Resolve,” which resulted in the capture of Venezuelan President Nicolás Maduro and his wife, Cilia Flores, in Caracas and their transfer to the United States to face federal charges. The intervention has elicited strong international reactions and underscored the potential for rapid shifts in political dynamics in the region, which could influence investor perceptions of risk and volatility in emerging markets, including Chile.

More recently, tensions between the United States and Cuba appeared to reemerge, which could also translate into increased instability in the Caribbean region. Given the recency of these events, their ultimate political, economic and financial impact remains uncertain. These factors could harm foreign trade and economic growth for both developed and developing countries while generating significant volatility in international markets and commodity prices.

We cannot predict the progress, outcome or consequences of the conflicts in Ukraine or Israel, or their broader impacts in Ukraine, Russia, Belarus, Europe, the U.S., the Middle East or Venezuela. The duration and effects of military conflicts are highly unpredictable and could lead to significant market and other disruptions, including significant volatility in and instability in financial markets, political and social instability, trade disputes, as well as an increase in cyberattacks and espionage.

As of December 31, 2025, and as of the date of this annual report, we did not have any exposure to customers or financial counterparties in Ukraine, Russia, Venezuela or Iran, whereas we had immaterial exposures (contingent loans) to Israeli financial institutions.

Furthermore, the slowdown of the Chinese economy has led to increasing volatility in the financial markets in the past, affecting international commodity prices, including copper, which is Chile’s main export. Due to the importance of copper exports and overall mining activity to Chilean economic growth, a prolonged slowdown in the Chinese economy, a Chinese-U.S. trade war or other developments may drive copper prices down and adversely affect the Chilean economy, and consequently negatively affect us.

Similarly, the foreign trade policy adopted by the current U.S. administration, which has included –from time to time– sudden and dramatic changes in tariffs for imported goods could continue to adversely affect international trade and potentially cause further disruption in international prices of commodities, including those exported by Chile, in a manner that is not possible to predict. Even though Chile and the U.S. have a free trade agreement in place, during 2025 the U.S. administration set a 50% tariff on semi-finished copper products and high-intensity copper derivatives, excluding refined copper (cathodes), which is the main Chilean export to the U.S. Nevertheless, other important Chilean export products, such as softwood timber and lumber, were assigned a tariff of 10%, the same as the general tariff applicable to all other Chilean export products to the U.S. Although the imposition of global tariffs set by the U.S. administration was struck down by the U.S. Supreme Court in February 2026, the U.S. administration subsequently determined to impose a new temporary surcharge of 15% on global imports under Section 122 of the Trade Act of 1974 for at least 150 days. As of the date of this annual report, there is no certainty whether tariffs on Chilean products will definitively be removed, revised or restored to the levels established under the free trade agreement between the U.S. and Chile.

The effect of all these trends on market volatility and the economic outlook of developed countries, emerging economies and Chile’s commercial partners could adversely impact the local economy, the local banking industry and, ultimately, our results of operations, financial condition and the price of our shares and ADS.

In the past, Chile has imposed controls on foreign investment and repatriation of investments that affected investments in, and earnings from, our ADSs.

Equity investments held in Chile by non-Chilean residents have historically been subject to various exchange control regulations that restrict the repatriation of investments and earnings from Chile. In April 2001, the Central Bank eliminated most of the regulations affecting foreign investors. However, foreign investors still must provide the Central Bank with information related to equity investments and must conduct such operations within the Formal Exchange Market. Additional Chilean restrictions applicable to holders of our ADSs, the disposition of the shares underlying them, the repatriation of the proceeds from such disposition or the payment of dividends may be imposed in the future, and we can neither determine in advance nor advise you as to when or how those restrictions could impact you, if imposed.

If for any reason, including changes in Chilean law, the depositary for our ADSs were unable to convert Chilean pesos to U.S. dollars, investors would receive dividends and other distributions, if any, in Chilean pesos.

Item 4 Information on the Company

History and Development of the Bank

Overview

We were founded in 1893, and we have been, for much of our history, among the largest and most profitable Chilean banks in terms of return on average assets and average equity in Chile. Our core business is commercial banking in Chile, providing traditional banking products and specialized financial services to our large and diversified customer base of individuals and companies.

Our legal name is Banco de Chile and we are organized as a banking corporation under the laws of Chile and were licensed by the CMF to operate as a commercial bank on September 17, 1996. Our main executive offices are located at Paseo Ahumada 251, Santiago, Chile, our telephone number is +56 (2) 2637-1111 and our website is www.bancochile.cl. Our representative in the United States is Puglisi & Associates, with offices at 850 Library Avenue, Suite 204, Newark, Delaware 19711.

We are a full-service financial institution that provides, directly and indirectly through our subsidiaries, a wide variety of lending and non-lending products and services to all segments of the Chilean financial market, providing our customers with powerful, differentiated, and comprehensive value offerings. In addition to our traditional banking operations, our subsidiaries and affiliates permit us to offer a variety of non-banking but specialized financial services including securities brokerage, mutual funds management, investment banking, insurance brokerage as well as acquiring and processing services for credit and debit cards.

Our business is not materially affected by seasonality.

We organize our operations and deliver our services to our customers through the following four principal business segments:

Through our retail banking segment, we provide our individual customers with credit cards, installment loans and residential mortgage loans, as well as traditional deposit services, such as current accounts, demand deposits, demand accounts, savings accounts, and time deposits. We and our subsidiaries also offer financial solutions such as insurance brokerage, securities brokerage, mutual funds management, among others. In addition to personal banking, our retail segment comprises micro, small and medium-sized companies that we serve by providing them with short- and long-term financing, deposit and cash management solutions, in addition to an array of financial services, such as insurance brokerage. Our banking services for wholesale customers include commercial loans (including factoring and leasing), trade finance, capital markets services, cash management and non-lending services, such as payroll, payment and collection services, as well as a wide range of treasury, financial advisory and risk management products.

In 2008, we enhanced our value offerings by entering into a strategic partnership with Citigroup Inc., as a result of our merger with Citibank Chile. We also offer international banking services through our representative office in Beijing and a worldwide network of correspondent banks.

The year ended December 31, 2023 was significant for Banco de Chile, as we celebrated 130 years of history and maintained leadership in the Chilean banking industry. As reported by the CMF, we led the local banking industry in both net income and profitability, achieving a 27.7% market share in net income attributable to shareholders and a return on average equity (ROAE) of 26.3% (attributable to shareholders), which reflects a successful and prudent business and risk management, consistent with a long-term strategic vision that permanently seeks the creation of sustainable value for all our stakeholders. In terms of operating income, we were able to largely mitigate the impact of lower inflation, as compared to 2022, through the expansion of customer income by more than 11%, mainly due to a higher margin from deposits, a boost in income from consumer loans based on attractive value offerings, as well as higher fees from transactional services and insurance brokerage. We also highlight the contribution of our Treasury in terms of generation of operating income by means of offering sophisticated financial products and services adjusted to the customers’ needs. The lending activity was constrained at the industry level, which translated into limited growth in our loan portfolio. In commercial loans, we recorded a 16.2% market share, 39 basis points below what was achieved at the end of 2022, in a context characterized by the negative impact of lower economic activity on the dynamism of companies. However, in consumer loans, we achieved 6.3% annual growth and increased our market share from 18.0% in 2022 to 18.7% in 2023, mainly due to attractive offers enhanced through a distinctive digital experience with the highest service quality standards. Finally, our residential mortgage loan portfolio expanded by 7.8%, in line with limited but sustained market growth despite higher interest rates that prevailed during the year, reaching a market share of 15.3%, slightly higher than the stake achieved in 2022. In 2023, we also achieved important advances in each of our strategic pillars: (i) regarding the pillar “customer at the center,” we extended the ongoing advance of digital solutions by expanding the capabilities of our remote service channels, implementing technology and advanced analytics to enhance the value offer, enabling new payment functionalities and expanding the scope of digital onboarding tools for both people and companies, while promoting financial inclusion through our FAN Account and cluster of products, (ii) in terms of our pillar “efficiency and productivity,” we managed to reengineer processes in the branches, reduce waiting and service times, reinforce the use of self-service ATMs, consolidate the digital sale of insurance, promote adoption of a new corporate purchasing model, and implement 100% digital granting of loans for SMEs, among many other initiatives and (iii) for the strategic pillar of “commitment to sustainability and Chile” we issued bonds abroad in the amount of approximately U.S.$85 million under our ESG Financing Framework. The resources obtained through such issuance will be entirely allocated to initiatives promoting the country’s sustainable development and inclusive economic growth, in line with the Sustainable Development Goals (SDG) of the United Nations and Global Compact Chile. Finally, our financial results allowed us to improve our capital base as reflected by a Total Regulatory Capital and CET1 ratio of 17.4% and 13.7%, respectively, as of December 31, 2023, both under Basel III framework.

As of December 31, 2024, according to the CMF, we ranked first in the Chilean banking industry in terms of net income attributable to equity holders with a market share of 24.6%. As of the same date and excluding operations of subsidiaries abroad, we were the second largest bank in Chile in terms of total loans with a market share of 16.1%, the second largest provider of commercial loans with a market share of 15.9%, the second largest provider of consumer loans with a market share of 18.6% and the fourth largest private sector bank in terms of residential mortgage loans with a market share of 15.5%. As for liabilities, excluding operations of subsidiaries abroad, we were the largest private bank in Chile in terms of current accounts and demand deposit balances (net of clearance) denominated in local currency with a market share of 20.1% and, more importantly, we ranked first in current account balances held by individuals with a market share of 23.8%, both as reported by the CMF and as of December 31, 2024. Lastly, according to the Chilean Association of Mutual Funds, as of December 31, 2024, we were the largest provider of mutual funds management services in Chile with a market share of 23.6%.

In 2025, we focused on consistently executing our corporate strategy, which enabled us to lead the industry not only in financial performance but also across several key dimensions. As of December 31, 2025, for the fifth year in a row, we were the leading bank in the Chilean industry in terms of net income attributable to equity holders, with a market share of 22.4%. At the same date, and excluding operations of subsidiaries abroad, we ranked as the second-largest bank in Chile in total loans, with a market share of 15.8%, the second-largest provider of commercial loans with a 15.4% market share, the second-largest provider of consumer loans with a market share of 18.1%, and the third-largest private bank in residential mortgage loans with a market share of 15.5%. Despite moderate loan growth and a financial scenario marked by lower interest rates and inflation, in 2025, our operating revenues managed to grow steadily on the grounds of solid customer revenues, supported by an active and diversified commercial strategy. This performance was demonstrated by a robust increase of 11.6% in net fee income and a 7.3% rise in income from loans, primarily driven by improved lending spreads that are continuing to approach the average levels observed prior to 2020. During 2025, we also made significant progress in the evolution of our FAN account model, which has become a key driver for customer acquisition and engagement, reaching approximately two million customers by December 2025, an increase of 17.7% when compared to December 2024. In addition, the launch of our new acquiring and processing subsidiary, Banchile Pagos , on November 17, 2025 was a significant milestone for the corporation, which will allow us to expand our value proposition for companies and entrepreneurs. Efficiency and productivity remained a core strategic priority in 2025 as well. Thus, throughout the year, we continued optimizing our branch network, which resulted in a targeted workforce reduction that has enabled us to increase productivity with a front-to-back approach. Additionally, we successfully completed the merger of our former collection subsidiary, Socofin S.A. (“Socofin”), into the bank. This merger is intended to enhance our control standards, strengthen governance practices, and improve customer experience over the medium term, while also streamlining collection processes and increasing productivity. Regarding information technology, we deepened the modernization of our technological architecture, achieving 54% cloud migration, while implementing a new corporate ERP system and advancing the update of the core banking platform. In parallel, we continued to advance the adoption of AI through a strategic alliance with Microsoft, which focuses on three main areas: (i) generative AI (GenAI), involving the application of advanced models for predictive analytics, simulations, data mining, and customer service, together with the integration of AI assistants to enhance employee productivity and experience through the adoption of Microsoft 365 Copilot, (ii) automation technologies, aimed at implementing automated processes to maximize operational efficiency, and (iii) low-code/no-code development, involving the use of agile development tools to accelerate the creation of digital solutions and improve the customer experience. By December 2025, our interaction with AI tools was primarily related to internal AI assistants and Copilot. During 2025, 60% of our employees used Copilot.

As of December 31, 2025, we had:

As of December 31, 2025, we had 11,156 employees and delivered financial products and services through a nationwide distribution network of 217 branches and 1,884 ATMs. Our ATMs are part of a larger network of 7,608 ATMs operating in Chile, of which 4,688 ATMs operate under a network managed by Redbanc S.A., a company we partly own along with eight other private sector banks.

History

We were founded in 1893 as a result of the merger of Banco Nacional de Chile, Banco Agrícola and Banco de Valparaíso, which created the largest private sector bank in Chile. We have played an important role in the economic history of Chile. Before the creation of the Central Bank in 1926 and prior to the enactment of the General Banking Act, we were the main stabilization agent of the Chilean banking system, a role that is now performed by the Central Bank. Beginning in the early 1970s, the Chilean Government assumed control of a majority of Chilean banks, and all but one of the foreign banks that were operating at that time closed their branches and offices within the country. Throughout this era, we remained as a private sector bank, except for a portion of our shares owned by the Chilean Government that were sold to private investors in 1975. Throughout our history we have developed a well-recognized brand name in Chile and expanded our operations in foreign markets, where we developed an extensive network of correspondent banks. In 1987 and 1988, we established four subsidiaries to provide a full range of specialized financial products and services as permitted by the General Banking Act. In 1999, we widened our scope of specialized financial services by creating our insurance brokerage and factoring subsidiaries. During the early 2000s, the Chilean banking industry witnessed intense merger and acquisition activity. In 2002, we merged with Banco A. Edwards, which allowed us to expand our business to new customer segments. In 2008, we merged our operations with Citibank Chile. As a result of these consolidations, we currently operate a distribution network that is composed of two brand names, namely, “Banco de Chile” (which operates throughout Chile) and “Banco Edwards-Citi” (which is primarily oriented to higher income segments).

The 1982-1983 Economic Crisis

During the 1982-1983 economic crisis, the Chilean banking system experienced significant instability that required the Central Bank and the Chilean Government to provide assistance to most Chilean private sector banks, including us. Subsequent to the crisis, like most major Chilean banks, we sold certain of our non-performing loans to the Central Bank at face value on terms that included a repurchase obligation. In 1989, banks were permitted to repurchase the portfolio of non-performing loans in exchange for assuming a subordinated debt equal to the difference between the face and economic value of such loans, which we did in November 1989.

In November 1996, pursuant to Law No. 19,396, our shareholders approved a reorganization by which Banco de Chile was converted into a holding company named SM-Chile S.A. (“SM-Chile”). In turn, SM-Chile organized a new wholly-owned banking subsidiary named Banco de Chile, to which the former contributed all its assets and liabilities, other than the Central Bank subordinated debt. In addition, SM-Chile created a second wholly-owned subsidiary named SAOS that assumed a new obligation in favor of the Central Bank that fully replaced the Central Bank’s subordinated debt. In exchange, the Central Bank received 63.6% of our shares from SM-Chile. Thus, SAOS would repay the new obligation by means of the proceeds of the dividends it would receive from us. Pursuant to SM-Chile’s bylaws, that company would remain in existence until the Central Bank subordinated debt was completely paid off by SAOS, which occurred on April 30, 2019. Since that date, SM-Chile was in the process of liquidation while SAOS was dissolved immediately. SM-Chile was officially liquidated on February 24, 2026. For more information on the Central Bank Subordinated Debt and the liquidation process of SM-Chile, see “Item 4. Information on the Company—History and Development of the Bank–History—The 1982-1983 Economic Crisis and the Central Bank Subordinated Debt” and “Item 7. Major Shareholders and Related Party Transactions—Ownership Structure” in the Form 20-F for the year ended December 31, 2020, filed with the SEC on April 30, 2021.

Merger with Banco A. Edwards

On December 6, 2001, our shareholders approved our merger with Banco A. Edwards, which became effective on January 1, 2002. Banco A. Edwards had been listed on the NYSE since 1995, and since January 2002, we have been listed on the NYSE under the symbol BCH. We concluded the merger process with the consolidation of a new corporate structure and the integration of our technological platforms.

Merger with Citibank Chile

On December 27, 2007, our shareholders approved our merger with Citibank Chile, which became effective on January 1, 2008. During 2008, we integrated Citibank Chile’s technological platforms with ours and established a new organizational structure in order to satisfy the needs of our customers and to achieve important synergies. We concluded the merger process with the integration of Corporación Financiera Atlas S.A. (former Citibank Chile’s consumer area) into our Consumer Finance Area (CrediChile formerly), which allowed us to nearly double our customer base and market share in consumer finance. As result of this merger and integration process, we entered into the following agreements with Citigroup Inc. to provide a framework for our relationship with Citigroup Inc., its services and trademarks in Chile: (i) the Global Connectivity Agreement, (ii) the Cooperation Agreement, (iii) the Trademark License Agreement and, (iv) the Master Services Agreement. All of these agreements have continued to be extended, amended and/or restated successively. For more information, see “Item 7. Major Shareholders and Related Party Transactions—Related Party Transactions.”

Technological Projects

During 2023, we maintained the focus on providing individuals and companies with excellent services and products as well as timely and effective solutions, through proactive and agile service in order to build relationships of trust with our customers. In this process, we launched innovative products, as well as renewed and updated various services, functionalities and digital tools that seek to deliver a more flexible and accessible experience, with high security standards and availability to customers and users. In this context, we became the first bank in Chile in the “Decentraland,” a decentralized metaverse platform where we launched “Dimension B,” a new virtual space of Banco de Chile, which represents an open space where the user can roam freely and access information on financial products and services. Moreover, we successfully released the Apple Pay digital wallet, which allows customers to pay in on-site stores without the need for a physical card. In the retail segment, different functionalities were added to the MiBanco, MiPago, MiSeguro y MiInversión mobile applications. In MiBanco, the renewal of the information on the home page and the creation of widgets or tools that allow viewing the benefits of the day, using the MiPago mobile application to add funds to (and pay for purchases using) the bracelet used to attend the Lollapalooza music festival in Chile, among others, stand out. On the online banking website, we were able to implement the digitization of the entire digital income situation statement and digital onboarding for current accounts in U.S. dollars. In the wholesale segment, improvements and new functionalities were added to the MiBanconexión application, such as enabling digital onboarding for current accounts in U.S. dollars, allowing online repayment and review of leasing products, permitting review of bank warranty bills, enabling digital ordering of mass payments, incorporating multi-company authorization for electronic funds transfer, applying for credits digitally, among others.

In 2024, we made significant progress in our digital transformation strategy, which has allowed us to launch innovative products and update our services, functionalities and digital tools, in order to deliver a simpler, more accessible and flexible experience to customers and users while ensuring high standards of cybersecurity and availability. These advances have resulted in a high degree of digital adoption by customers, such as the current account onboarding that has leveraged improvements in credit monitoring and electronic signature. In this regard, in 2024, we consolidated a digital marketing strategy for digital products fully based on digital onboarding through personalized actions and active presence on the main digital platforms. In the Retail Segment, we updated and incorporated several functionalities on the website and applications, including the integration of MiSeguro into the MiBanco application, allowing customers to take and manage their insurance policies in one place. Additionally, we incorporated new functionalities in MiBanco to allow customers to open digital checking accounts, make payments through QR code and receive daily notifications with offers and promotions of our loyalty program. Also, at the beginning of 2024, we launched “FAN Ahorro,” a savings account with no maintenance costs or minimum opening amount, which may be opened 100% digitally and only requires having a valid FAN Account and an identification card. This product earns monthly interest and allows the customer to make up to two withdrawals without losing the interest earned. Meanwhile, in the Wholesale Banking segment, we updated the Banconexión 2.0 platform with a new design focused on simplicity and ease of use, seeking to increase customers’ productivity when managing their transactions. In addition, we renovated investment tools by incorporating the possibility of investing in mutual funds while introducing an investment summary dashboard. Also, we launched Pago Fácil, a payment solution that allows companies to pay us and other banks fully online at any time. Likewise, in 2024, we made significant IT developments intended to reinforce and increase productivity of our back and middle office operations, such as: (i) robotic process automation, development of AI use cases, and digitization of transactions, (ii) our new ERP platform for the automation and centralization of purchasing and payment activities, along with new processes to optimize capital expenditures in infrastructure, (iii) the strengthening of the technological architecture and high service standards through the update of our data center networks and the implementation of a multicloud strategy, and (iv) transformation and modernization of our mutual funds and stock brokerage subsidiaries. Also, during 2024, we continued to incorporate AI tools as part of our digital transformation process through the exploration and integration of generative AI in various areas of our operations. In this regard, we managed to: (i) provide more than 300 software developers with AI assistance, (ii) launch a customer service chat for FAN Clan account holders, and (iii) make an assistance chat available to our account officers. In addition, our advanced analytics area developed models and systems that provide our customers with accurate recommendations by considering their areas of interest while maintaining strict information security standards. Furthermore, we have integrated AI to streamline our processes, which has allowed us to improve the efficiency of manual procedures with advanced data processing technologies, increasing verification and accuracy, and improving our service quality.

In 2025, we continued deploying our digital transformation strategy by enhancing digital services and tools to provide our customers with a simpler, more accessible, more secure and flexible experience. In the retail banking segment, we redesigned the MiBanco mobile application by introducing faster access to key functions and a new section that highlights benefits, products, and promotions. Through this innovation, we also expanded some digital capabilities through automated credit limit adjustments, fully digital credit card onboarding, new options for installment loan analysis and a debt consolidation simulator. We also introduced a benefits search tool and an upgraded notification system to support personalization and customer engagement. In addition, we integrated the former MiPago application into the MiBanco application to centralize payment and collection functionalities. For wholesale banking customers to SME customers, we continued developing a digital ecosystem through the ongoing evolution of Banconexión 2.0 and the MiBanconexión application, both designed to support productivity and streamlining banking operations to provide these customers with timely service, such as enabling multi-company authorization dashboards, introducing gadgets for online credit origination, incorporating new features in the MiBanconexión application for digital onboarding of U.S. dollar accounts and mass payment approval tools. Likewise, we launched an Application Programming Interface (“API”) Store. Furthermore, we introduced MiPass application for companies to expedite the approval of banking operations. In November 2025, the CMF granted operating authorization to Banchile Pagos , which was officially launched in December 2025. This subsidiary’s value proposition relies on a business platform that allows companies to contract acquiring services—both physical and digital—within five minutes, while accessing a smart POS device for on-site sales and centralized account management through Banconexión 2.0 and MiBanconexión. Also in 2025, we took further steps in the adoption of AI tools, which were used by more than 60% of our employees as of December 31, 2025 while over 800 developers actively incorporated AI into their workflows. Currently, our efforts have focused on the use of AI assistants for diverse commercial, investing and technological tasks. In this regard, we have increased AI-assisted code generation and deployed digital onboarding support, advanced analytics and AI-enabled personalization tools—supported by our data governance framework—to enhance customer experience and operational efficiency.  In 2025, we also entered into a strategic alliance with Microsoft, which is expected to promote innovation, strengthen digital security initiatives, and enhance internal productivity through the development of three main areas: (i) generative AI (GenAI), (ii) automation technologies, and (iii) low-code/no-code development.

Through these efforts, we have maintained our commitment to anticipating changes and minimizing risks related to technological advances, including cybersecurity risks, as discussed in “Item 3. Key Information—Risk Factors—Risks Relating to Our Operations and the Chilean Banking Industry.”

Capital Expenditures

The following table sets forth our capital expenditures for each of the three years ended December 31, 2023, 2024, and 2025:

Our budget for capital expenditures for 2026 amounts to approximately Ch$107,239 million, of which information technology investments are expected to represent 80.8% and infrastructure projects, the remaining 19.2%. The budget is aligned with our mid-term strategic priorities of improving efficiency and productivity while enhancing customer service capabilities with a focus on digitalization. We expect to finance these capital expenditures principally with our own resources and long-term debt financing.

Among the budgeted expenditures for information technology, 35.8% corresponds to new and ongoing IT projects under agile methodologies, intended to provide business solutions for customers, enhance technological stability and productivity, and strengthen our communication network, cloud servers and cybersecurity infrastructure and systems. In addition, 24.2% of the IT budget consists of investments in technological equipment and system improvements to be carried out by some of our subsidiaries, of which more than 70.0% of the expenditure is expected to be incurred by our new acquiring and processing services subsidiary, Banchile Pagos , which is still in a start-up phase. Of the remaining 40.0%, 18.5% relates to traditional development of applications and remote service channels to provide digital alternatives to meet customers’ needs on a timely basis, 12.5% is expected to support regulatory compliance requirements and 8.9% is intended to support the update of our technological infrastructure, including further optimization and enhancement of security standards for our nationwide ATM network.

Our 2026 infrastructure budget is expected to include initiatives to enhance security standards in our branch and ATM network as required by the Chilean security authority (32.7%); disbursements associated with the refurbishment of our branch network (26.0%), which seeks to upgrade the layout of some of our branches in order to align them with the service model we are promoting across the country, and the renovation and restoration of corporate buildings together with changes in infrastructure to complete the integration of former Socofin employees to Banco de Chile’s headquarters (11.1%). Furthermore, the annual budget includes additional efficiency initiatives (10.0%), capital expenditures to reinforce security standards (7.5%) and improvements to recreational facilities (3.8%).

All the aforementioned investments have been made or are intended to be made in Chile.

BUSINESS OVERVIEW

Our Competitive Strengths

Building on our knowledge of the Chilean financial market, we have historically been able to develop significant competitive advantages based on our strong brand recognition, our widespread branch network, the diversity and relative size of our customer base, our highly competitive funding structure, the superior asset quality of our loan portfolio as compared to our peers in Chile, an attractive risk-return relationship and our market leadership in a diverse range of financial products and services.

Our main competitive strengths are:

Brand Recognition and Strong Corporate Image

We have operated in the Chilean financial industry for 132 years under the “Banco de Chile” brand name. In order to provide our customers with specialized value offerings and a wider range of financial products and services, we have also developed the “Banco Edwards-Citi” and “Banchile” brand names. We believe our long-standing history in the Chilean market is recognized by our customers and the general public, who associate our brands with value, quality, reliability and social responsibility within the Chilean financial industry, as demonstrated in various polls conducted by well-known market research companies. We believe that our long history in the Chilean banking industry is a key element that differentiates us from our competitors.

Additionally, we believe that our merger with Citibank Chile reinforced our corporate image as a leading financial institution in Chile and allowed us to gain recognition among customers and investors all over the world.

We also believe that our strong corporate image is further strengthened by our commitment to social responsibility, which includes supporting the Teleton Foundation (a non-governmental organization dedicated to assisting and treating disabled Chilean children), our partnership with institutions dedicated to improving the quality of Chilean education, our participation in campaigns intended to improve the quality of life of needy people, our commitment to supporting and sponsoring diverse monetary and non-monetary campaigns for recovery efforts from natural disasters in Chile, including wildfires, earthquakes, floods and tsunamis, and the development of other initiatives intended to strengthen our role in, and contribution to, Chilean society. Furthermore, over the last years we have devoted efforts to improving our commitment to the environment by carrying out numerous initiatives.

In 2025, we received several distinctions due to our strong brand recognition and corporate image in the banking industry. We were recognized by Merco (a corporate reputation monitor) as the fourth Chilean company with the best corporate reputation across all industries and second among local banks. Likewise, Global Finance Review recognized us as the “Best Bank” in Chile.

Business Scale and Leading Market Position

We are one of the largest financial institutions in Chile and a market leader in a broad range of financial products and services within the Chilean financial system, as listed in the following table:

Source: Chilean Association of Mutual Funds and the CMF.

Through our history, we have been able to maintain a leading position in the wholesale banking segment, which characterized us in the past, by improving our products and services and supplementing them with comprehensive and tailored service models that allow us to successfully meet our customers’ needs while maintaining long-term relationships with major local and multinational companies that operate in Chile. We have also added value to our service offerings by including treasury products for hedging purposes, together with investment banking, insurance brokerage and other specialized financial services provided by our subsidiaries.

In the last decade we have also achieved significant market share in the retail banking segment through diverse value offerings intended to cover our target demographics and enterprises. Therefore, we have prioritized the expansion of our residential mortgage portfolio and our presence in transactional services such as credit cards, current accounts and demand accounts, as we believe they are effective means to build long-term relationships and customer loyalty, while increasing cross-selling opportunities. For this reason, through our Individual and SME Banking Area, we aim to lead the market in services offered to high and medium-income individuals for whom we have developed an attractive and complete portfolio of financial services, including a full range of wealth management services through one of our subsidiaries. We supplement these value offerings with specific proposals for SMEs, which in recent years have coupled with value offerings satisfying small scale entrepreneurs’ financial needs, including the services provided by our acquiring and processing subsidiary, Banchile Pagos , and individual customers in outlying districts seeking deposit and transactional solutions. This broad variety of services has also enabled us to lead the Chilean market in terms of net fee and commission income.

We believe our financial strength, prestige and brand recognition among Chilean customers have allowed us to become the market leader in many banking products and services, such as commercial loans, fees and commissions and demand deposits held by individuals, among others.

Broad and Diversified Customer Base

We believe that we have one of the largest customer bases among financial institutions in Chile. In recent years, we have been able to expand our customer base by providing attractive and tailored value offerings based on improving segmentation and by applying sophisticated business intelligence tools. As of December 31, 2025, according to our Management Information System, we had 1,510,415 core customers, which had at least a current account or a loan outstanding with us. In addition, with respect to our main banking products, as of December 31, 2025, we had 1,303,518 current accounts holders; 228,353 time deposit holders; and 241,734 saving account holders. Similarly, as of December 31, 2025, we were the second largest privately-owned bank in terms of number of borrowers with a 21.9% market share associated with 1,385,878 debtors (excluding contingent loans), according to data published by the CMF. As of the same date, according to the CMF, we had 1,585,888 credit card account primary holders.

We believe that our broad customer base is both an essential driver of our business and a valuable asset that enables us to cross-sell our traditional lending products and services along with non-lending services provided primarily through our subsidiaries, including our securities brokerage, mutual funds management, financial advisory, insurance brokerage and collection services.

Multichannel Distribution Approach

In order to better serve our customers, we offer a distribution approach composed of both physical and non-physical channels.

We are present in all regions of Chile and strive to be accessible to every Chilean customer through our large branch network as well as non-physical contact channels. As of December 31, 2025, we had a nationwide branch network of 217 branches, the largest in Chile among private sector banks, according to information published by the CMF. This network is composed of 187 branches under our “Banco de Chile” brand name and 30 branches under our “Banco Edwards Citi” brand name. We believe that our branch network enables us to develop close relationships with our customers and therefore we are constantly assessing new branch locations throughout Chile.

We have also complemented our branch network with non-physical remote channels, such as ATMs, internet-based online platforms and mobile banking applications. As of December 31, 2025, we had 1,884 ATMs throughout Chile and we provided our customers with specialized internet websites for each of the segments we target, coupled with diverse mobile banking applications, including MiBanco, MiBanconexion, MiPass and MiInversion. During 2025, monetary transactions carried out by customers and non-customers through mobile applications or internet-based platforms jointly increased 8.1%, compared to a 5.8% decrease in transactions performed in branches and ATMs.

Proven Digital Banking and Business Intelligence Capabilities

Over the last years, digital transformation has been steadily increasing its importance within the Chilean banking industry, a trend that was accelerated during 2020 as a result of the COVID-19 pandemic’s mobility restrictions. In order to be aligned with our customers’ needs during such a challenging period, we have made several cultural changes within our organization, which include the introduction of new financial products, services and technologies. By doing so, we expect to achieve sustainable growth in the coming years and to improve both our processes’ efficiency and the consumer experience with the Bank.

As a result, in recent years we have implemented several advances in both the back and front office aimed at improving customer experience by expanding digital channels while adding new products and functionalities. We have also continued increasing sales through these points of contact by working with advanced analytics to improve cross-selling. Additionally, digital transformation has become a crucial goal across the Bank, which has led us to focus on talent and digital culture in order to bolster our capabilities while emboldening innovation in all aspects of the banking business with a front-to-end approach by adopting new work methodologies such as agile.

One of the key pillars of our digital banking strategy has been the development of cutting-edge mobile applications and customized websites. Over the last years, we have devoted efforts to enhance our mobile banking platforms by developing and launching diverse applications, including MiBanco, MiBanconexion, MiInversion, and MiPass. We are continually improving the functionalities and robustness of applications that enable our customers to perform most of the transactions they can execute on our websites, such as: (i) accessing their account balances, (ii) executing electronic money transfers, (iii) applying for pre-approved installment loans, (iv) generating secure passwords to make such transfers, (v) making cash advances from credit cards to checking accounts, (vi) setting cash withdrawals from our ATM branch network, (vii) making bill payments, (viii) requesting reimbursements from other Banco de Chile customers by scanning a QR code, (ix) managing their personal investment portfolios by investing or disinvesting in equity, fixed-income, and mutual funds, and (x) contracting insurance policies while managing their stock of policies, among others.

The FAN Account, a fully digital-onboarding demand account, has remained a cornerstone of our digital strategy in recent years. Since its launch in 2020, the FAN Account has aimed to improve customer experience and promote loyalty through ongoing enhancements to available functionalities. In 2022, we broadened the scope of the FAN Account by introducing tailored offerings for specific customer segments. In this regard, we launched “FAN Emprende,” a fully digital demand account for SMEs, start-ups, and entrepreneurs that provides access to our digital channels and segment-specific benefits. We also introduced “FAN Clan,” a fully digital-onboarding demand account for teenagers from 14 to 17 years of age, which customizes the customer experience through the use of avatars and provides access to benefits and discounts included in our loyalty program. In 2024, we launched “FAN Ahorro,” a savings account with no maintenance fees or minimum opening amounts that is opened digitally and requires a valid FAN Account and a national identification card. This product accrues monthly interest and allows up to two withdrawals without forfeiting accrued interest. During the same year, we launched the Digital Student Plan for higher-education students between 18 and 27 years of age, which includes a checking account and provides the possibility to apply for a credit card. As of December 31, 2025, the FAN Account had reached two million customers, most of whom had no prior relationship with us.

In 2025, within the retail banking segment, we enhanced our digital value proposition by updating the MiBanco application to simplify navigation and improve access to key functionalities, while strengthening personalization and expanding digital processes across credit and benefits-related services. We continued to consolidate our digital channels through the integration of payment features into the MiBanco application, seeking to provide customers with a more unified and efficient experience across platforms. As such, we integrated former applications, such as the former MiPago application into the MiBanco application in order to streamline our customers’ interaction with our mobile tools. For wholesale banking customers and SME customers, we advanced the development of our digital ecosystem by enhancing the Banconexión 2.0 and MiBanconexión mobile application with improvements focused on usability, operational efficiency and connectivity, including multi-company authorization dashboards while introducing tools for online credit origination and new features, such as digital onboarding for U.S. dollar accounts and mass payment approval tools. We also launched our API Store, enabling clients to connect certain internal systems with the Bank’s digital services to support automation, productivity, and service quality. Furthermore, we introduced the MiPass application for companies to streamline the approval of banking operations.

We believe these and other similar initiatives have allowed us to continue improving our online channel usage rates, as illustrated in the table below, which sets forth information regarding the evolution of the number of transactions (monetary and non-monetary) carried out by customers and non-customers through our diverse distribution channels that were performed through non-physical remote channels.

Competitive Funding Structure

We believe that we have a cost-effective and highly competitive funding structure based on our leading market position in current accounts and demand deposits, especially among individuals. According to the CMF, as of December 31, 2025, with a 23.6% market share, we ranked first within the Chilean banking industry in current accounts and demand deposits held by individuals. As of that same date and excluding operations of subsidiaries abroad, we were the first private bank in Chile in terms of total balances of non-interest bearing current accounts and demand deposits denominated in local currency, representing 19.9% of the industry (net of clearing), as reported by the CMF. Under Chilean GAAP, our total balances of current accounts and demand deposits represented 30.0% of our funding structure (excluding equity) as of December 31, 2025, as compared to the 23.4% reported by the Chilean banking industry, excluding Banco de Chile. In addition, we have a solid base of funding from retail banking customers, who held demand deposits and time deposits that jointly represented 36.6% of our total liabilities (excluding equity) as of December 31, 2025. This provides us with a stable source of funding that is reflected by a 30-day moving average renewal rate of retail time deposits, which reached approximately 72.4% as of December 31, 2025.

We strive to diversify our liability structure in terms of sources, types of instruments and markets with the aim of maintaining a competitive cost of funding and improving our liquidity. In 2025, we were more active in our long-term debt placements in both the local and foreign markets, based on a funding strategy that aims to diversify our liability structure to finance loan growth at the most convenient cost of funds while adequately managing financial gaps in the banking book. Accordingly, in 2025, we carried out the following debt placements: (i) Ch$1,572,815 million in the local market with an average maturity of 10 years; (ii) Ch$115,739 million in Switzerland with a six-year maturity; (iii) Ch$75,233 million in Hong Kong with a seven-year maturity; (iv) Ch$65,260 million in Japan with a five-year maturity; (v) Ch$50,998 million in Mexico with a five-year maturity; and (vi) Ch$43,101 million in Australia with a ten-year maturity.

We believe that our funding structure provides us with a cost advantage over many of our competitors (which use a higher proportion of interest-bearing liabilities), as current accounts and demand deposits are non-interest bearing in Chile. We also believe that our solid market position in demand deposits, together with our high international credit ratings, translated into one of the lowest costs of funding from liabilities associated with interest bearing deposits and long-term debt, among the five largest banks in Chile.

Prudent Risk Management & Superior Asset Quality

Of the Chilean financial institutions, we have among the highest credit quality and the healthiest loan portfolio in Chile. We believe this asset quality is the result of our well-known prudent risk management approach and accurate credit risk models that are updated from time to time and have enabled us to maintain relatively low levels of past-due loans (loans 90 days or more past due) and high coverage indicators over the last few years. According to the CMF, as of December 31, 2025, we had a delinquency ratio (loans 90 days or more past due as a percentage of total loans) of 1.68% which was well below the industry average delinquency ratio of 2.57% recorded by the Chilean banking industry (excluding Banco de Chile) as of the same date. Additionally, according to data published by the CMF, as of December 31, 2025, we had a coverage ratio (allowances for loan losses over loans 90 days or more past due) of 127.1%, which was well above the industry average coverage ratio of 103.9% as of the same date (excluding Banco de Chile). Over the last few years, the utilization of business intelligence tools has also contributed to an improvement in our credit risk management. During 2025, we kept a constant monitoring of risk conditions, particularly in those sectors most sensitive to the economic environment and in relation to the retail banking segment, which presented a steady convergence to past-due indicators seen before 2020 after periods of extremely low delinquency in the local banking industry. Likewise, we focused on the analysis of the financial condition of economic sectors adversely affected by specific dynamics, such as the real estate and construction industry and the transportation industry, which tended to improve their credit risk profiles throughout the year. In the retail banking segment, increased delinquency among individuals characterized the performance of the industry as a whole, with past-due indicators that –particularly in residential mortgage loans– increased above figures seen before 2020. We recognize that the current period reflects an adjustment following several years of atypical payment behavior. Throughout 2025, we have made concerted efforts to closely monitor these trends with the objective of restoring delinquency rates to more typical levels as economic activity recovers.

International Coverage

In 2008, we enhanced our value offerings by entering into a strategic partnership with Citigroup Inc., as a result of our merger with Citibank Chile, effective on January 1, 2008. As result of the merger and integration process, we entered into various agreements with Citigroup Inc. to establish a framework for our relationship with Citigroup Inc., including the services to be rendered by each party and the use of trademarks in Chile. For more information, see “Item 7. Major Shareholders and Related Party Transactions—Related Party Transactions.”

This strategic alliance, backed by a Global Connectivity Agreement with Citigroup Inc., has allowed us to broaden our service offerings by adding a comprehensive portfolio of international financial services that previously we could only partially provide. Based on this relationship, we are able to provide our local customers with world-class financial services and participate with them in their international ventures. Furthermore, we provide a reliable business platform for Citibank’s customers who aim to operate in Chile.

Our Business Strategy

Mission

‘We are a leading and globally-connected corporation with a prestigious business tradition. We provide excellent financial services to all of our customer segments by offering creative and effective solutions while at the same time ensuring that we add value for our shareholders, employees and community as a whole.’

To accomplish this mission, we believe it is essential to attain industry leadership in all businesses and financial areas in which we operate, namely, profitability, efficiency, business scale, customer base, human resources development and corporate social responsibility.

Vision

‘We aspire to be, in all things we do, the best bank for our customers, the best place to work and the best investment for our shareholders. In order to accomplish this vision, we are committed to the development of our employees and the community as a whole.’

Our mission and vision commit us to all of the diverse stakeholders related to our business, including customers, employees, investors and the community. Thus, our vision is shared and internalized by all areas across the corporation, senior management and the board of directors while also constituting the basis for our strategic objectives. This vision requires initiatives to achieve comprehensive excellence in management, with customer satisfaction as our major goal. For this reason, we apply high industry standards in information technology, business models and service quality, all of which are summarized by the value creation cycle below:

Source: Banco de Chile.

Corporate Values

Our way of thinking is reflected by a set of values that are shared by our employees and shareholders, which are aimed at providing our customers with world-class financial solutions and quality standards:

Purpose

‘We are a company that contributes to the economic development of the country by generating favorable conditions for the development of individuals and enterprises, providing them with financial solutions that fit their needs at every stage of their lifetime.’

In order to accomplish this, we have made commitments to all of our stakeholders, since we are convinced that we will achieve excellence in all of our businesses and projects as long as we are able to satisfy stakeholders in their interactions with us.

Commitments

We aim to satisfy the expectations of the following stakeholders by:

Strategic Priorities

Our long-term strategy is intended to maintain profitable growth by placing the customer at the center of all of our decisions and to improve efficiency and productivity in all of our processes and procedures while maintaining a strong commitment to sustainability and the country. These are our strategic priorities and we aspire to attain them through collaboration and teamwork.

Source: Banco de Chile.

We aim to support our customers and meet their needs throughout their lives. In order to achieve this goal, we strive to promote customer proximity and reliability, while providing our customers with the best service quality within the local market.

In our retail banking segment, our aim is to lead the market by providing differentiated and comprehensive value offerings based on a deep and focused ongoing improvement of our segmentation, which allows us to engage in profitable and high-growth potential business opportunities. Thus, we expect to expand our business and customer base by developing tailored service models, optimizing our branch network, enhancing our presence in the small and medium-size company market and reinforcing certain lending products that should enable us to consolidate long-term relationships with the upper and middle-income individual customers, particularly through payment channel usage (such as credit cards), digital banking, installment loans and residential mortgage loans. Similarly, we aspire to target middle-income individuals and microbusinesses by promoting payroll-deduction lending and attracting customers previously unattached to any bank through a basic array of services.

We firmly believe that there continues to be room to grow in retail banking. Although Chile’s per capita GDP has increased fourfold over the last 30 years, banking penetration is still below that in developed countries, particularly in relation to residential mortgage and consumer loans. In fact, as of December 31, 2025, the loan book of the Chilean banking industry (excluding operations of subsidiaries abroad) represented 73% of Chilean GDP. As of the same date, mortgage and consumer loans represented 26% and 9%, respectively. On the other hand, according to the CMF, as of December 31, 2025, we had market shares of 18.1% and 15.5% in residential mortgage loans and consumer loans, respectively. Given the fierce competition in the Chilean banking industry, in order to take advantage of these opportunities, we are frequently seeking to develop innovative products and services to diversify our revenue sources. Accordingly, we have strived to build comprehensive value offerings for our retail segment in order to continue enhancing our fee-based income by promoting the digitalization of products and services provided to these customers while improving benefits related to our customer loyalty programs.

Similarly, in our wholesale banking segment, we aim to maintain a market-leading position in loans while growing profitably in a market that is characterized by low margins and fierce competition. We intend to accomplish these goals by increasing our cross-selling of non-lending products and services. For this reason, we are focused on improving our cash management services, enhancing our internet-based and mobile services, increasing the penetration of products designed by our treasury segment, strengthening our presence in certain lending products such as leasing and factoring and promoting international businesses by taking advantage of the Global Connectivity Agreement we maintain with Citigroup and the specialized array of financial services offered by our subsidiaries, such as securities brokerage, mutual funds management and financial advisory in order to meet the needs of certain niches within this business segment. The success of our wholesale banking segment is critical to our ability to maintain sustainable growth in revenues, particularly in fee-based income. Thus, cross-selling is one of our main priorities in this segment.

In our treasury segment, we intend to take advantage of our specialized knowledge in order to increase the penetration of widely-used products in our current customer base while offering innovative products to potential customers. Also, we frequently seek newer and more convenient funding choices, locally and internationally, in order to support our long-term business strategy by promoting an adequate diversification of our funding structure.

(1) Reinforcement of FAN Account Cluster

In the second half of 2020, we launched “FAN Account,” our fully digital onboarding account designed for all types of individual customers. This account may be digitally opened without visiting our branches, with no paperwork but still subject to our strict account approval processes. Additionally, the Fan Account permits holders to perform local and international purchases with no entrance or maintenance fees, which seeks to promote financial inclusion. Also, FAN Account users have access to all the benefits and platforms offered by the Bank to its customers. Between 2021 and 2024, we enhanced the value offering behind the Fan Account by developing a FAN Account Ecosystem while deploying a wide array of services and features, including: (i) a new customer service channel with a chatbot called FANi, (ii) full access to Banco de Chile’s digital ecosystem. and (iii) cardless cash withdrawals. Likewise, over the years, we have created tailored solutions for SMEs and young people, such as: (i) FAN Emprende, which is a fully digital account for SMEs, start-ups, and entrepreneurs that allows access to our digital channels and benefits by enabling customers to perform transactions online while having no requisites for opening, (ii) FAN Clan that targets teenagers and promotes financial inclusion by offering benefits that are part of our loyalty program through a customized digital environment, and (iii) “FAN Ahorro,” a 100% digital savings account that earns monthly interest and allows customers to carry out up to two withdrawals without losing accrued interest, with no maintenance cost or minimum opening amount. In 2025, we continued to widen the services and products offered to FAN Account customers. We also managed to develop a micro-credit offering and low-limit credit cards for FAN Account holders without a credit history in the local financial industry or who did not qualify under traditional risk parameters, which is in line with the inclusion initiatives that are part of the FAN Account Ecosystem. These products are digitally delivered through the MiBanco application or our website. During 2025, we granted more than 24,000 micro-credits and opened approximately 12,000 low-limit credit cards for FAN Account holders.

Through FAN Account, we were able to attract 300,000 new customers in 2025 and reached two million users as of December 31, 2025.

(2) Advances in Digital Banking for Strengthened Value Offerings

In 2025, we continued to deploy our ambitious digital strategy to deliver improved and tailored banking solutions for our customers by generating a simpler, more accessible, and flexible experience. Through the digital transformation process, we focused on the launch of innovative products and the ongoing modernization of our services, functionalities, and digital tools.

In the retail banking segment, we renewed the MiBanco mobile application, focusing on simplifying the user experience through faster access to frequently used functions and the incorporation of a new section highlighting benefits, new products, promotions, and other relevant content for customers. Additional digital functionalities were introduced to streamline key processes, including: (i) automated and pre-approved increases and distribution of credit card and credit line limits, (ii) digital onboarding for credit cards within the MiBanco application, (iii) a widget that allows users to convert the billed monthly use of credit cards into installment loans, and (iv) a debt-consolidation simulator in order to promote financial planning. We also introduced a new benefits search tool—available on the Bank’s website —that allows customers to find active benefits by type and category. The MiBanco mobile application was further enhanced with the integration of Travel Sky Plus Platinum-level benefits and direct access to the Bank’s VIP lounge offerings at Santiago International Airport. Additionally, we updated our customer notification system to deliver more personalized and timely alerts related to benefits and relevant content. As part of our strategy to consolidate our digital channels, we integrated the former MiPago application into the MiBanco application, enabling clients to execute peer-to-peer transfers, RedGiro QR operations, and Webpay QR payments directly within the main mobile application.

For companies ranging from corporations to SMEs, our strategic focus continued to advance the development of a comprehensive digital ecosystem in order to streamline banking operations carried out by these types of customers to ensure timely and tailored solutions. This progress was reflected in the ongoing evolution of our Banconexión 2.0 platform and MiBanconexión mobile application, both designed with interfaces focused on simplicity to streamline daily operations and enhance client productivity. Also, during 2025, we launched our API Store, which enables these kinds of customers to integrate their internal financial management systems with our API-based services to support efficiency, productivity, and service quality by delivering on-time solutions for diverse customers’ needs.

We also strengthened our digital offering for companies through several enhancements, including the implementation of a multi-company authorization dashboard that supports integrated management for organizations with multiple legal vehicles. In addition, for FAN Emprende customers, we developed online applications for pre-approved loans and introduced digital onboarding for current accounts. Furthermore, we launched MiPass for companies, a mobile application designed to digitally approve banking transactions, while through the MiBanconexión mobile application we incorporated new features ranging from digital onboarding for U.S. dollar accounts to approval of mass payments and high-value transfers.

(3) New Subsidiary Banchile Pagos : Acquiring and Processing Services for Credit and Debit Cards

Over the past few years, especially since the end of 2020, cash payments for goods and services have declined while being substituted by credit and debit cards as the most used payment methods. In addition, the significant increase in online transactions has further driven the growth and use of digital payment methods both locally and internationally. As part of the transformation experienced by the payment ecosystem since March 2020, a “four-party model” is currently operating in Chile, which has allowed the appearance of new players in the acquiring market. This has resulted in increased competition and reduced fees for customers and has facilitated the financial management for customers and SMEs through the tracking of sales, deposits, charges, and various types of related reports.

In July 2024, we created a new subsidiary, Banchile Pagos , an acquiring and processing service company that seeks to compete in the prevailing four-party model ecosystem for credit and debit cards while widening the value proposition we offer to our customers, with a special focus on SMEs and middle market companies, through innovative payment and cash management solutions. During 2025, Banchile Pagos carried out a pilot phase with a limited group of clients in order to evaluate the adequacy of its operating model and technological platforms. In December 2025, the company officially started operations, and by the end of December 2025, Banchile Pagos had enrolled approximately 6,800 merchants, delivered more than 7,800 Smart POS devices in use, and processed over 4.7 million transactions.

(4) Ongoing Improvements in Service Quality

We are convinced that in a highly competitive industry such as the Chilean banking system, a customer-centric focus is critical to generating loyalty and creating long-term profitable relationships. We believe that our high service quality is a competitive strength that differentiates us from competitors and supports our long-term strategy by responding to the preferences of our current and potential customers. Accordingly, we strive to improve our relationships with customers by developing commercial strategies and value offerings aligned with their needs, as well as improving our response time and customer satisfaction indicators. Consistent with this view, during 2025, we continued enhancing our commitment to service quality, improving existing capabilities and developing new online channels and enhanced functionalities for mobile applications, while implementing organizational changes to provide our customers with a more comprehensive approach and customized solutions.

We believe that our efforts in developing comprehensive and customized value offerings for customers have contributed to improving customer experience over time. In this regard, as of December 31, 2025, we ranked first among relevant peers with a net promoter score of 61%, according to the study conducted by Procalidad, an independent Chilean customer satisfaction survey. Also, the average voluntary attrition rate was 2.7% for the year ended December 31, 2025, compared to an average voluntary attrition rate of 2.5% between 2019 and 2024.

We believe that efficiency and productivity are key competitive strengths that we have to maintain in order to sustain profitable growth in a changing business environment that is under increasing regulatory focus. Accordingly, we aim to become a productive and efficiency-oriented organization in all business aspects by developing simple, effective, secure and low-cost processes while maintaining the tightest cost control in the industry. To accomplish these goals, we have invested in information technology and the development of simpler, more manageable, secure and modern business processes and platforms to attain faster response times and higher productivity. We also continue to enhance our strategic development capabilities, increase our business scale, develop economies of scope by incorporating new financially related products and services, optimize our branch network, enhance our remote transactional channels, improve our credit processes, develop a higher level of automation in our internal processes and consolidate our cost control policy and monitoring procedures.

We are dedicated to developing and optimizing internal processes to reduce and manage our expenses. Throughout 2025, we continued to enhance our IT infrastructure to improve stability and efficiency for all of our customers. Likewise, we continued to disburse financial resources to reinforce our IT infrastructure on cybersecurity matters. We believe this is the best way to improve our operating efficiency and enhance security standards while properly meeting our customers’ needs, which are increasingly linked to digital channels, fast response and timely service. For more information, see “Item 4. Information on the Company—Capital Expenditures.”

(1) Integration of Socofin into the Bank

In July 2025, our former collection subsidiary, Socofin , was merged into the Bank and subsequently dissolved. This initiative was part of our continuous focus on efficiency and productivity as we realized that the credit recovery function that was formerly carried out by Socofin could be integrated into the Bank in order to optimize the staff and all the related processes in terms of control, governance and customer experience by means of automated solutions and a redesign of crucial activities in direct coordination and organizational dependence of our recently created Corporate Risk Division.

We expect the merger of Socofin into the Bank to result in enhanced operational efficiency in the credit recovery process by leveraging economies of scale and scope. This integration is also expected to provide our customers with more direct and transparent management of overdue loans, thereby supporting the maintenance of strong, long-term relationships.

(2) Branch Network and Headcount Optimization

We believe that remote channels are key to the future of banking, particularly amid new regulatory requirements, intensified competition, the entry of new banking players, and higher reputational exposure, all of which translates into higher costs. Similarly, customers are increasingly demanding new and innovative distribution channels and visiting branches less, given lack of time, but mostly due to the massive use of the internet and the fast adoption of smartphones. In 2018, these trends led us to undertake financial and strategic analyses aimed at revising our entire branch network in terms of profitability, location, layout and services offered through these channels.

In 2025, we completed the optimization of our nationwide branch network, resulting in more efficient operations through the implementation of new self-service devices for customers, the redesign of branch layouts, and the integration of a comprehensive service model tailored to the needs of customers in the retail banking segment.

As a result, as of December 31, 2025, our branch network was composed of 217 branches, compared to 334 branch locations as of December 31, 2020.

Likewise, the deployment of our efficiency program has enabled us to streamline several internal processes with a front-to-back approach that, along with the organizational restructuring we have carried out in order to both imprint an efficiency-focused culture across the corporation and due to the branch network optimization, has translated into a steady optimization in headcount from 12,541 employees in 2022 to 11,156 employees in December 2025, which represents an 11.0% decrease.

(3) Technological Advances in Internal Processes and Infrastructure

In 2025, we continued to promote our focus on efficiency and productivity in all aspects of the banking business. In this line, during 2025 we focused on capturing value through efficiency and cost savings by implementing initiatives aimed at centralizing subsidiary functions, optimizing organizational structures and infrastructure expenses, and redesigning our service model.

Additionally, during 2025, we continued to make steady progress in the transformation process of our subsidiaries Banchile Administradora General de Fondos and Banchile Corredores de Bolsa toward a renewed digital offering for their clients, while maintaining market-leading positions within their respective industries.

Also, we have continued to promote the progressive evolution of our technological infrastructure and capabilities to keep them modern, flexible, scalable, and aligned with market-leading practices, which in the end should translate into increased efficiency and productivity. As part of these efforts, we seek to promote the development of highly automated processes and the adoption of specialized software that allow us to accelerate our knowledge to address digital transformation. Accordingly, during 2025, we continued to adopt AI, with the aim of improving internal productivity and enhancing customer service quality, for instance through the AI-powered virtual assistant FANi, whose capabilities were expanded to address inquiries related to all FAN products, providing a unified experience for new and existing clients. These efforts were further reinforced through a strategic alliance we established with Microsoft starting in October 2025, which is focused on accelerating innovation, strengthening commercial team productivity, enhancing customer experience, and reinforcing digital security through three main areas, including: (i) generative AI, (ii) automation technologies, and (iii) low-code/no-code development. Employees were granted access to secure and validated generative AI tools, such as Copilot 365, to support their daily tasks and increase their productivity with solid standards of digital security. By December 2025, more than 60% of employees had access to these tools across commercial, investment, and technology teams, including AI assistants deployed across the organization—such as CAP, SARA, Risky, I-BAN, MinervAI, Wayo, PRAI, and Jarvis—.Similarly, we expanded analytical capabilities for managing credit collection and financial inclusion through Labrisk AI, while AI-based tools were used to enhance the effectiveness of customer communications and marketing campaigns. The number of software developers utilizing AI doubled to more than 800.

We are devoted to focus on the progress of our customers by means of providing them with a wide array of services while supporting their funding needs. Furthermore, we are committed to the development of Chile and its individuals and companies by providing innovative tools that contribute to improve their quality of life. In this regard, we firmly believe that modern companies need to create effective mechanisms to build positive connections with all of their stakeholders and the society in which they carry out their business activities. This has become increasingly important in the midst of societal changes in Chile and worldwide.

This view is shared by the Bank and its employees, who support the development of Chile through diverse methods such as promoting social progress, contributing to environmental protection, decreasing extreme poverty, providing high-quality education to needy people, assisting disabled young people, fostering cultural development and embracing campaigns intended to overcome the effects of specific adverse events such as natural disasters.

Over the years, in line with its commitment to Sustainability and Chile, we have promoted different initiatives focused mainly on the areas of: (i) training and education for communities, (ii) entrepreneurship support, (iii) inclusion, and (iv) environment commitment. Our sustainability strategy is aligned with the Sustainable Development Goals (SDGs) and therefore seeks to promote inclusive economic development, promote environmental sustainability, stimulate innovation and partnerships, in addition to strengthening the relationship with the communities in which the Bank operates.

In recent years, we have successfully rolled out a variety of initiatives, achieving significant milestones in 2025, including the following:

(1) Training and Education for Communities

We believe that education is a cornerstone for the country’s social and economic progress. Through the “Educación para Chile” program, we seek to broaden learning opportunities and create pathways that can improve people’s lives. The program focuses on strengthening the educational ecosystem by building strategic partnerships and implementing initiatives that provide individuals with tools to enhance employability and well-being. Accordingly, diverse initiatives are implemented under the following strategic focus areas:

Aims to strengthen the financial capability of students, elderly people, workers, entrepreneurs, and disabled people by translating core financial concepts into everyday habits and informed decision-making through initiatives such as: (i) financial education mentors, where 81 volunteers from Banco de Chile delivered mentorship to improve budgeting, planning, and responsible financial choices, reaching approximately 5,600 people of all ages; and (ii) the “Comunidad del Ahorro” (Saving Community) program, a community-based learning initiative aimed at offering digital courses that prioritized women heads of household while integrating financial education by means of practical guidance on managing household food spending, reaching 1,027 women in 2025.

We promote foundational reading skills and interest in books from early ages through volunteering and community events. In 2025, 100 children ranging from six to 10 years old participated in activities to support interest in reading and comprehension. Also, more than 1,000 students took part in the “Reading Fair,” which included workshops, storytelling, and activities to encourage reading for pleasure.

Through this initiative, we promote informed and engaged citizenship by creating spaces for reflection, cultural access and skills development that broaden perspectives and strengthen community bonding across the country.

During 2025, we undertook the following key actions on this topic: (i) the “Education for Chile Dialogues” convened 400 participants to discuss the future of education, complemented by six expert talks on subjects such as inclusive pedagogy, innovation, and skills development, which collectively attracted 800 attendees; (ii) the “Challengers Contest," organized in collaboration with Universidad de los Andes, engaged over 7,000 students from technical and vocational education and training (TVET) institutions in addressing a social challenge—financial education in open-air markets—which culminated in three TVET students and one professor traveling to South Korea for an international learning experience that connected education with global culture; (iii) the “My First Opera” program, as part of the Education for Chile initiative, presented The Barber of Seville at the Municipal Theater of La Pintana to more than 500 attendees, primarily local families and children, providing a free and inclusive cultural experience that brought art and classical music closer to the community; and (iv) the “Heritage Tours," designed to promote culture and institutional history by opening our headquarters to groups of students, teachers, and workers to foster community engagement, together with "Heritage Day 2025,” a governmental initiative that enabled nearly 4,000 visitors to explore the first floor of our main headquarters building, recognized as a National Historic Monument.

We seek to connect learning with labor-market needs through practical training, work-based experiences, and targeted support that enhance employability for students, teachers, and underrepresented talent in high-demand fields.

The “Compromiso TP” (TP Commitment) initiative aims to promote work opportunities for technical school students through an alliance with Fundación Chile. In the first stage, this program focuses on management and information technology skills through integration and curricular strengthening. Compromiso TP also includes a new educational approach in relation to lecturer skills and provides students with the opportunity to use tools and practices that allow them to pursue employment opportunities upon graduation. In 2025, through this program, more than 861 students received certification in matters such as accounting, networks and connectivity, programming, and telecommunications.

Also, to promote community training, during 2025 the “More Women in Technology” initiative granted a total of 316 scholarships to entrepreneurs, migrants, and young women through intensive bootcamps organized with specialized training partners to support employability.

(2) Entrepreneurship Support

Throughout our history, we have demonstrated our commitment to the development and success of entrepreneurs, for which we have implemented different gathering and supporting instances in order to promote their advancement in their business goals. During 2025, the main initiatives we carried out in this area were:

The “Concurso Desafío Emprendedor” (National Entrepreneur Challenge Contest) program, which seeks to promote the development of micro-entrepreneurs and SMEs throughout the country, in association with Desafío Levantemos Chile, has become one of the most important entrepreneurship support programs in Chile. In 2025, more than 25,000 entrepreneurs signed up for the contest, which provides cash prizes and training activities for entrepreneurs on various topics such as budgeting, work methodologies, saving alternatives, investment choices and responsible financial indebtedness. Likewise, this initiative permits entrepreneurs to access an ecosystem in which they increase visibility, boost sales and generate stronger and long-lasting relationships with their current and potential customers. The contest’s runners-up were provided with mentoring to build their pitch with the support of experts and participation in an open television program, along with cash prizes.

The “Impacto Emprendedor” program focuses on students from middle- and high-school to undergraduate, graduate and recent graduates of higher education establishments in the country (universities and technical schools). In 2025, we organized the fifth version of the national university entrepreneurship contest “Impacto Emprendedor Universitario,” convening 263 projects composed of more than 686 students. Participants received support through a training program that included online activities, as well as seed funding to help validate their prototypes. We also organized the fourth version of the national school entrepreneurship contest “Impacto Emprendedor Escolar,” bringing together 603 teams composed of more than 2,000 students from 178 educational institutions. This program aims to strengthen the entrepreneurial culture among middle and high-school students across the country, fostering leadership, innovation, critical thinking, and social commitment through a training process.

The “Mujeres que Inspiran” program aims to have a positive impact on the development of the country by promoting gender equality, education, employment and the development of local economies through women who lead their communities. In 2025, for the fifth consecutive year, this program received over 1,500 applications, of which 30 women were awarded as microentrepreneurs or leaders of social organizations that have marked their communities through sustainable initiatives in the social, environmental and economic fields. Based on this recognition, these women received mentoring and specialized training to strengthen their leadership and collaboration networks.

This initiative, developed in alliance with Desafío Levantemos Chile, aims to support the economic and social recovery of entrepreneurs in the Valparaíso Region who have been affected by emergencies. The program combines training, personalized mentorship, and financial support, with the objective of strengthening businesses in areas such as business model development, financial health, and digital marketing. During 2025, 30 entrepreneurs benefited from the training and financial support, and were accompanied by 30 volunteers from the Bank.

(3) Inclusion

In 2025, we continued to promote Inclusion, Non-Discrimination and Respect to Diversity across the corporation and in our interaction with the community. Through this pillar, we aim to improve our knowledge of physical disability, discrimination, and diversity while developing higher sensitivity on these matters.

Our commitment to disabled people is permanent. In 2025, we worked once again with Teleton Foundation (“Teleton”) in the annual fund-raising campaign by putting our nationwide distribution network, internet-based platforms, and mobile applications for smartphones, in addition to other technological resources, at Teleton’s disposal. Also, more than 7,000 of our employees participated as volunteers in the annual campaign carried out in November 2025. We have been supporting the Teleton Foundation since its establishment in 1978.

Likewise, we sponsor paralympic sportsmen and sportswomen while organizing sporting events for disabled people like the Chilean Open Wheelchair Tennis Tournament. The 26th edition of this tournament received around 40 Chilean and foreign players, and awards distributed during the tournament totaled U.S.$14,000.

Additionally, in 2025, we held the eighth version of “Navidad con Sentido” (A Meaningful Christmas), an initiative that allows volunteers teams from Banco de Chile to design and implement sustainable impact projects that benefit social organizations across the country. In 2025, this activity involved more than 1,200 volunteers with 120 projects, benefiting around 13,000 children, teenagers, disabled people and elderly people from all regions of the country.

(4) Environment Commitment

We prioritize sustainable development along with responsible environmental and social management, recognizing the role that financial entities play in driving the economic system. Through diverse initiatives, we focus on enhancing community engagement through competitive funds, partnerships, and volunteer programs, strengthening strategic collaborations with foundations, universities, and organizations aligned with the pillars of sustainability—entrepreneurship and education, contribution to environmental care, emergency support, and inclusion—placing a strong emphasis on local relevance.

In 2025, we worked in alliance with “Desafío Levantemos Chile” to provide support to communities and institutions affected by emergencies across the country. Following the tornado that struck Puerto Varas, in the Los Lagos Region—causing damage to homes, businesses, vehicles, and public infrastructure—we contributed through the donation of reconstruction prepaid cards and work tools to help families and entrepreneurs.

We also delivered support to La Providencia high school in Traiguén, in the Araucanía Region, an educational institution with more than 130 years of history, whose facilities were damaged by wildfires. Our assistance supported the continuity of learning for the 125 students, including 90 students who live in its free boarding school. This institution has a School Vulnerability Index (SVI) of 99%, which demonstrates the important social role it plays for the community by providing secondary and technical-professional education.

In May 2022, we launched the “Compromiso Azul” (Blue Commitment) Program, which is a roadmap on environmental and climate change matters. This program is composed of diverse initiatives that seek to contribute to environmental care through different initiatives, such as operational eco-efficiency, community relations, recycling and the offer of products and services for people and SMEs. In 2025, we carried out several volunteer programs called “Cuadrilla Azul” (Blue Crew) focused on environmental care. Through this initiative, during the last year we primarily focused on cleaning beaches, rivers, and wetlands. In two days, 660 volunteers of Banco de Chile managed to cover nine locations nationwide, where more than 277,000 square meters were cleaned, and around 7.7 tons of waste were collected and taken to recycling plants and official landfills. Likewise, our insurance brokerage subsidiary, in collaboration with the international organization Parley for The Oceans, carried out a campaign aimed at cleaning rivers and wetlands nationwide. This project involved more than 60 locations in 14 regions of the country and included the participation of more than 2,500 volunteers, who collected 15 tons of waste, including more than 2.5 tons of plastic, preventing it from entering the sea.

Principal Business Activities

We are a full-service financial institution that provides, directly and indirectly through our subsidiaries and affiliates, a wide variety of lending and non-lending products and services to all segments of the Chilean financial market. Accordingly, for management purposes we organize our operations in the following business segments:

Source: Banco de Chile.

The business segments information presented in this section has been prepared in accordance with Chilean GAAP, which are the principles applied by management in identifying and measuring business segments, including the application of the management approach described in IFRS 8 and used by the CEO, as Chief Operating Decision Maker (CODM) to monitor and report our business performance to the Bank’s board of directors. For a discussion of the most significant differences between Chilean GAAP and IFRS Accounting Standards, see “Item 5. Operating and Financial Review and Prospects—Operating Results—Results of Operations for the Years Ended December 31, 2023, 2024, and 2025—Business Segments” and “Item 5. Operating and Financial Review and Prospects—Operating Results—Results of Operations for the Years Ended December 31, 2023, 2024, and 2025—Summary of Differences between Chilean GAAP and IFRS Accounting Standards”. Also, see Note 6 to our audited consolidated financial statements as of and for the year ended December 31, 2025 included elsewhere in this annual report for the reconciliation of business segment information from Chilean GAAP to IFRS Accounting Standards.

The following table sets forth information on the composition of our loan portfolio and our consolidated net operating income before income tax, in accordance with Chilean GAAP for the year ended December 31, 2025, allocated among our principal business segments:

The following table sets forth our total operating income, before expected credit losses, allocated among our principal business segments, for the years indicated:

The following table sets forth a breakdown of our loan portfolio by customer and business segments for the year ended December 31, 2025:

Retail Banking Segment

Our retail banking segment serves the financial needs of individuals and small and medium-sized companies through our branch network. As of December 31, 2025, loans granted by our retail banking segment amounted to Ch$26,443,984 million and represented 67.5% of our total loans as of the same date.

In terms of composition, as set forth in the following table, as of December 31, 2025, our retail segment’s loan portfolio was principally focused on residential mortgage loans, which represented 52.6% of the segment’s loan book. The remaining loans were distributed between commercial loans (25.7%) and consumer loans (21.8%).

We serve the retail market through our Retail Banking Segment, which is responsible for offering financial services to individuals and microentrepreneurs, as well as small and medium-sized companies with annual sales of up to UF70,000 (approximately Ch$2,781.0 million as of December 31, 2025). This segment manages our branch network operating under the brand names “Banco de Chile” and “Banco Edwards Citi” and had 217 branches as of December 31, 2025. For purposes of personal banking, the Individuals and SME Area maintain a segmentation to provide customers of middle- and high-income segments with tailored value propositions.

The strategy followed by our Retail Banking Segment is mainly focused on sub-segmentation, multi-brand positioning, cross-selling of lending and non-lending products and service quality based on customized service models for specific customer needs. Also, loyalty programs have been increasingly incorporated into our commercial targets for each sub-segment and they have enabled us to increase the use of our credit cards and our fee-based income. In addition, the area’s operations count on the support of specialized call centers, mobile and internet banking services, along with a wide range of management tools that allow us to measure returns, the performance of cross sold products and the effectiveness of marketing campaigns. Similarly, over the last years the area has strengthened value offering for SMEs by promoting a close relationship, while accompanying entrepreneurs in the diverse stages of their life cycle.

We complement the services offered by our other business segments, especially our wholesale market segment, by offering services to employers, such as direct deposit capabilities for payroll payment purposes, which in turn enable employees to use our deposit services.

In 2025, the Retail Banking Segment focused on targeted growth opportunities while developing new business solutions and benefits to improve our customers’ experience. Based on these pillars, this business segment recorded a 2.5% growth in personal banking customers (number of individuals), which was partly explained by revised value propositions that were split into two customer clusters composed of transactional (retail, young and traditional) and relational (preferential and private) customers in order to better satisfy their needs. Likewise, we introduced tailored value offerings for both digitally-oriented customers and customers who prefer more traditional channels. We also continued to reinforce the FAN Account ecosystem, which includes the FAN Ahorro account, a digital savings account designed for both current and new customers that simplifies the saving process and earns monthly interest. As a result, this business segment recorded a 33.3% growth in savings accounts during 2025. Moreover, this business segment achieved a 3.6% increase in checking account holders in 2025, which was in part the consequence of revised current account plans that became simpler, more flexible and more connected to the benefits of the loyalty program.

Also, during 2025, this segment continued to advance in the penetration of payment channels, which translated into: (i) a 4.1% increase in credit card-related loans, which allowed us to gain market share in this lending product, (ii) an increased amount of transactions made through payment channels, as reflected by a 6.4% and 11.8% rise in purchases with both credit and debit cards, respectively, together with annual increases of 4.0% and 2.4% in the total stock of credit and debit cards issued in 2025, respectively, when compared to 2024, (iii) an increase of 3.7% in consumer installment loans that enabled us to achieve a market share of 20.4% as of December 31, 2025, and (iv) the consolidation of the FAN Account ecosystem, which reached more than two million customers in 2025 on the grounds of improved service quality and strengthened relationships with customers.

During 2025, the SME banking unit continued to implement digital solutions to provide timely and efficient services while expanding the range of digital products. As a result, in 2025, approximately 79.0% of transactions carried out by SME customers were conducted digitally, including loan applications and payment orders. In line with this strategy, current accounts opened by the SME banking unit increased 33.6% when compared to 2024, reaching approximately 31,600 new clients. Current accounts opened under the FAN Emprende product increased 30.9% in 2025 when compared to 2024, which resulted in approximately 61,000 total FAN Emprende clients. This growth was primarily driven by the introduction of new commercial plans that leveraged technological capabilities that have been developed for this type of customer. In addition, we enhanced our value proposition for SMEs through the establishment of Banchile Pagos, our acquiring and processing company for credit and debit cards, intended to improve customer experience, especially for SMEs and middle-market companies, through payment and cash management solutions as part of the four-party model prevailing in the cards market.

As of December 31, 2025, the Retail Banking segment served 1,477,998 core customers (customers holding a current account or a loan) of whom 1,290,180 were individuals and 187,818 were small and medium-sized Chilean companies. This customer base resulted in total loans to 1,168,840 borrowers, including 148,198 residential mortgage loan debtors, 138,708 commercial loan debtors, 562,422 utilized lines of credit, and 319,512 installment loans. As of December 31, 2025, 79.6% of loans managed by this segment were granted to individuals, representing approximately Ch$21,053,743 million, while 20.4% of the loans of the segment were granted to SMEs, amounting to Ch$5,390,238 million.

We offer a variety of financial services to individuals, SMEs and microbusinesses, directly through the Individuals and SME Area or indirectly through our subsidiaries, such as current accounts, automatic bill payment, debit cards, credit cards, revolving credit lines, residential mortgage loans, consumer loans, commercial loans, mortgage loans for general purposes, leasing agreements, factoring services, mutual funds management and stock brokerage, trade finance, payments and collections, insurance brokerage (which includes life and casualty insurance), acquiring and processing services for credit and debit cards, savings instruments and foreign currency services.

Installment Loans

Our consumer installment loans are generally granted, up to a customer’s approved credit limit, to afford purchases of goods and/or services, such as cars, travel, household furnishings and education, among others. Consumer loans may be denominated in both pesos and UF, bear fixed or variable interest rates and are generally repayable in installments over a period of up to 46 months.

As of December 31, 2025, we had Ch$3,375,533 million in installment loans granted by the Bank as a whole, which accounted for 58.5% of our total consumer loans. Most of these installment loans are denominated in Chilean pesos and are payable on a monthly basis.

Residential Mortgage Loans

As of December 31, 2025, we had outstanding residential mortgage loans of Ch$13,916,618 million, which represented 35.5% of our total loan book as of the same date. According to information published by the CMF, as of December 31, 2025, we were Chile’s third-largest private sector bank in terms of year-end mortgage loan balances, accounting for approximately 15.5% of the mortgage loans granted by the Chilean banking industry, excluding the operations of banks’ subsidiaries operating abroad.

Our residential mortgage loans are generally denominated in UF and have maturities ranging from five to 30 years. As of December 31, 2025, the average residual maturity of our residential mortgage loan portfolio was 16.6 years. Originally, we funded our residential mortgage loans through the issuance of mortgage finance bonds, which are recourse obligations only to us with payment terms that are matched to the residential loans. Also, the mortgage finance bonds bear real market interest rates plus a fixed spread over the variable rate of the UF, which permits us to partially reduce our exposure to interest rate fluctuations and inflation. Chilean banking regulations allow us to finance up to 100% of a residential mortgage loan with mortgage finance bonds, based on the purchase price of the property securing the loan or the appraised value of such property. In addition, we generally require that the monthly payments on a residential mortgage loan do not exceed 25% of the borrower’s household after tax monthly income. However, that limit may be adjusted for the middle- and high-income population segments.

For loans that finance a higher portion of the property appraised value, we demand that customers comply with stricter requirements, which are verified during the credit assessment stage. These requirements are related to: (i) the history of the relationship between the Bank and the customer (new or current customer), (ii) credit risk scores, (iii) monthly income, (iv) type of job (employed or self-employed) and (v) years employed. In order to illustrate the above, the table below sets forth an example of requirements for residential mortgage loans that finance up to 80% and more than 80% of the property value, with a common term and granted to employed as well as self-employed new customers.

Credit–Granting Requirements

During 2025, 1.3% of the residential mortgage loans granted to our customers financed between 90% and 100% of the property value. Similarly, during 2025, loans financing between 75% and 90% of the property appraised value represented 59.5% of these loans, loans financing between 50% and 75% of the property value represented 32.9% of these loans, and loans financing less than 50% of the property value represented 6.2% of these loans. According to our prudent risk approach, we have been tightening our credit granting policy for residential mortgage loans by restricting the loan financing limit as a percentage of the property’s value, although higher financing may be granted to longstanding customers within specific segments.

An additional feature of our mortgage loans is that mortgaged property sometimes, and under certain conditions, secures some of the mortgagor’s other credits with us, including installment loans and due balances associated with credit cards and credit lines. Our total amount of loans secured by real estate guarantees, under Chilean GAAP, their loan–to–value (LTV) ratio and their relative share in our total loan portfolio, as of December 31, 2025, are depicted in the table below:

The LTV ratios provided above are based on estimated property values that we update monthly with the collateral valuation models managed by our Corporate Risk Division. These models determine a rate of depreciation that provides an updated collateral value, based on variables such as geographic location, last appraisal date, type of property and type of customer. Accordingly, the LTV ratios set forth above take into account the most recent available data regarding collateral values.

In addition, the following table sets forth the composition of the other-than-mortgage loans secured by real estate guarantees:

Unlike in other countries, in addition to the specific legal rights afforded by the mortgage loan (including foreclosure rights), the Bank may collect the pending balance of the mortgage loan over other assets of the mortgage debtor based on certain legal liens provided by law (derecho de prenda general). Regarding the foreclosure processes, as permitted by Chilean regulations we may write-off secured loans (such as residential mortgage loans) the earlier of 48 months from the date the loans become overdue and once we have made all efforts for recovering the past-due loans without success. This applies to residential mortgage loans financed with mortgage finance bonds as well as for Mutuos Hipotecarios. Our foreclosure processes comply with the procedures specified by Chilean regulation. However, as we strive to improve our collection processes, we have achieved average terms of 13 months for foreclosures associated with residential mortgage loans.

As for our historical loss rates, we periodically review our collateral pricing models by adjusting the parameters that support them, such as appreciation and depreciation rates, as well as updated recovery and loss rates, based on historical and empirical data. Thus, we normally revise our collateral pricing models by incorporating updated information from re-appraised assets or foreclosure processes that have been completed by the Bank in the past.

In addition, the valuation of guarantees is based on a prudent approach, which aims to anticipate and cover unexpected reductions in their market price as a result of changes in market variables, such as an unforeseen slowdown in the global or local economy, lack of liquidity of real estate assets or decrease in real salaries. Accordingly, our collateral pricing models depreciate the value of the guarantee regarding the market value determined by an independent appraiser. This approach has allowed us to minimize the loss rates, as the value obtained from auctions (if foreclosure applies) generally exceeds the value assigned to the asset as guarantee.

Credit Cards

As of December 31, 2025, we issued both individual and corporate Visa and MasterCard credit cards. In addition to traditional credit cards, our portfolio also includes co-branded cards. As of December 31, 2025, we had two loyalty programs or cobranding agreements, namely “Travel Club” and “Entel Visa.” Credit cards issued under these cobranding agreements supplemented the credit cards that we issued under the brand names Banco de Chile and Banco Edwards-Citi. In addition, as of December 31, 2025, we offered 13 types of credit cards, targeting diverse types of segments and encompassing different benefits, including: Visa Corporate, Visa Dorada, Visa Infinite, Visa Internacional, Visa Platinum, Visa Signature, Visa Entel, Visa ChilePyme, MasterCard Black, MasterCard Dorada, MasterCard Internacional, MasterCard Platinum and MasterCard Corporate.

Our affiliate, Transbank S.A., provides us with services related to payment transactions support. As of December 31, 2025, Transbank S.A. had 10 shareholders (including us) and as of the same date, our equity ownership in Transbank S.A. was 26.16%.

As of December 31, 2025, we had 1,605,991 valid credit card accounts, with 1,832,845 credit cards issued to individuals and small and medium sized companies (according to the CMF), held by 1,592,815 customers. Total charges on our credit cards during 2025 amounted to approximately Ch$9,171,006 million, with Ch$8,367,719 million corresponding to purchases in Chile and abroad and Ch$803,287 million corresponding to cash withdrawals both within Chile and abroad. The amount of purchases made by our customers accounted for 17.2% of the total purchase volume of banks’ credit cards in 2025, according to statistics provided by the CMF. Similarly, our market share in terms of cash withdrawals and automatic bill charges were 18.5% and 14.7% as of the same date, according to the CMF.

As of December 31, 2025, our credit card loans to individuals and small and medium sized companies amounted to Ch$2,091,618 million and represented 36.3% of our retail market business segment’s consumer loans.

We believe that the Chilean market for credit cards has attractive growth potential, especially in the middle-income customer segment, where banking penetration is still low. Likewise, fees associated with credit cards should continue to decline due to increasing competition from traditional banks operating in Chile and non-banking players, such as large department stores and other companies, from diverse industries, involved in the issuance of credit cards. As a result, we strive to develop customized commercial strategies to reinforce this payment channel by applying business intelligence tools that enable us to satisfy the needs of our diverse customer base. Also, based on the new rules issued in the last years by our regulator in relation to the four-party model and its implications for the processing and merchant acquiring services market for credit and debit cards, in 2024, we established Banchile Pagos , which offers acquiring and processing services for credit and debit cards. This company started operations in December 2025 and is expected to widen the value offerings we provide to companies, particularly SMEs and middle market companies.

Regarding the four-party new model, a technical committee is responsible for determining the maximum interchange fees that may be charged by credit card issuers (such as banks, including us) to companies that provide merchant acquiring services. Since its inception functioning the technical committee has reduced the maximum interchange fees twice, which resulted in lower net fee income for banks. Although the fees were scheduled to be redefined in October 2024, the process was again postponed due to the variety of comments received by the technical committee from market participants, in light of the significant changes that have occurred in the credit and debit card market in recent years. Thus, as of the date of this annual report, the interchange rates were the same as those in effect on October 1, 2024 (0.5% for debit cards, 1.14% for credit cards and 0.94% for prepaid cards). For more information see Item 3. Key Information–Risk Factors–Risks Relating to our Operations and the Chilean Banking Industry–Stricter banking regulations and changes in law may constrain our operations and thereby adversely affect our financial condition and results of operations–Other Legal and Regulatory Requirements.

Commercial Credits

Commercial credits granted by our Retail Banking Segment mainly consist of project finance loans, trade finance loans, long-term financing and working capital loans granted to small and medium sized companies, which are denominated in Chilean pesos, UF and U.S. dollars and may bear fixed or variable rates of interest with average maturities of approximately five years (excluding non-residential mortgage loans). As of December 31, 2025, our Retail Banking Segment had outstanding commercial loans of Ch$5,889,613 million, representing 22.3% of the retail banking segment’s total loans and 15.0% of our total loans as of the same date.

Leasing Contracts

Leasing contracts are financial leases for capital equipment and property. Leasing contracts may bear fixed or variable interest rates and they generally have terms that range from one to five years for equipment and from five to 20 years for properties. Most of these contracts are denominated in UF. As of December 31, 2025, our Retail Banking Segment had outstanding leasing contracts of Ch$613,393 million, representing 2.3% of the retail banking segment’s total loans and 1.6% of our total loans as of the same date.

Lines of Credit

As of December 31, 2025, the Retail Banking Segment had approximately 1,129,414 approved lines of credit to individual customers and small and medium sized companies. Also, this segment had outstanding advances to 562,422 individual customers and small and medium sized companies that totaled Ch$292,113 million, or 1.1% of the retail banking segment’s total loans and 0.7% of our total loans.

Our lines of credit for individual customers are generally available on a revolving basis, up to an approved credit limit, and may be used for any purpose. Advances under lines of credit are denominated in Chilean pesos and bear an interest rate that is set monthly.

Debit Cards

We offer different types of debit cards to our customers. Depending on their specifications, these cards can be used for banking transactions at ATMs that operate on the local network provided by Redbanc and the local network of merchants participating in the local Redcompra debit program. Also, our debit cards can be used internationally through the Visa International PLUS network or the international network of merchants associated with the Electron program. We name these debit cards depending on the card’s specific features and the link between the brand and target market which they serve. During 2025, we offered the following debit cards: Visa Infinite, Visa Estándar, Visa Estándar FAN, Visa Signature, Visa Platinum and Visa Debit Business. As of December 31, 2025, according to the CMF, we held a 11.5% market share of debit card transactions, which corresponds to approximately 527.9 million transactions throughout the year.

Deposit Products

We strategically offer deposit products to increase our deposit-taking activities as a means of diversifying our sources of funding. We believe that the deposits of our individual customers provide us with a relatively low-cost, stable source of funding, as well as an opportunity to cross-market our other products and services. In this regard, we offer current accounts, time deposits and savings accounts to our individual customers. Current accounts are Chilean peso-denominated and the majority bear no interest (approximately 0.04% or 516 of our total current accounts are interest-bearing), and savings accounts are denominated in UF and bear a fixed-interest rate. Time deposits may be denominated in Chilean pesos, UF and U.S. dollars and most of them bear interest at a fixed rate with terms that range between seven to 360 days.

While demand has historically been focused on UF-denominated deposits during periods of high inflation, demand for Chilean peso-denominated deposits has increased in recent years as a consequence of lower and more stable inflation rates in Chile.

As a result of the inflationary pressure due to the boost in household spending caused by a liquidity surplus in the economy in 2021 and 2022, the Central Bank then adopted an aggressive monetary policy, which increased from 0.5% in July 2021 to 4.00% in December 2021 and to 11.25% in December 2022. Since inflation took longer-than-expected to decline, the Central Bank kept the monetary policy interest rate at 11.25% until July 2023, after the 12-month CPI variation began to show signs of retreat. Based on that, the Central Bank reduced the monetary policy interest rate gradually until such rate reached 8.25% in December 2023. Due to both the higher opportunity cost of funds and the loss in purchasing power due to inflation, depositors began to move from demand deposits to short-term time deposits, which resulted in annual declines of 27.8% and 0.5% in year-end total demand deposit balances for us in 2022 and 2023, respectively. In 2024, even though inflation registered a moderate rebound by ending the year at 4.5%, measured as CPI variation, the Central Bank continued to have an easing monetary stance by decreasing the reference interest rate to 5.0% in December 2024. In 2025, the Central Bank maintained the monetary policy interest rate at 5.0% for most of the first half, adopting a cautious stance given global uncertainty and inflation risks. In September 2025, the Central Bank held the rate at 4.75% in response to stronger domestic activity and persistent core inflation pressures. In December 2025, the Central Bank reduced the rate to 4.5%, the second cut of the year, as inflation continued to improve. As a result, given the downward trend in interest rates, the annual average balances of time deposits managed by our Retail Banking Segment decreased by 8.1% in 2024 and by 8.9% in 2025. Also, given the lower opportunity cost once inflation began to decrease, average demand deposits managed by the Retail Banking increased by 6.1% in 2025, compared to the 3.8% increase recorded in 2024 given the prevailing level of interest rates at that point.

Wholesale Banking Segment

Our wholesale banking segment serves the needs of corporate customers. In 2025, this business segment recorded annual total operating income before expected credit losses of approximately Ch$835,903 million, which represented 27.6% of our total operating revenues. Also, for the year ended December 31, 2025, this segment recorded an income before income tax of Ch$630,597 million, which represented 41.7% of our consolidated income before income tax. As of December 31, 2025, loans granted by this business segment amounted to Ch$12,747,986 million and represented 32.5% of our total loan portfolio.

The following table sets forth the composition of our portfolio of loans to the wholesale market as of December 31, 2025:

As of December 31, 2025, we had 10,681 debtors out of a total of 27,590 core customers (customers holding either a loan or a current account with us). Our wholesale customers are engaged in a wide range of economic sectors. As of December 31, 2025, loans granted by our wholesale banking segment were mainly related to:

In line with our strategy of identifying and differentiating market segments in order to provide improved value propositions for a diversified customer base, three of our areas provide our wholesale customer base with banking and financial products and services: (i) the Corporate Banking Unit, (ii) the Special Businesses Banking Unit and (iii) the Large Companies Banking Unit.

Corporate Banking Unit

The Corporate Banking Unit provides banking products and services to corporations with annual sales exceeding UF3.0 million (approximately Ch$119,183.9 million as of December 31, 2025). The customers served by this banking unit consist of a large proportion of Chile’s publicly-traded and non-listed companies, subsidiaries of multinational companies and conglomerates operating in Chile (including those operating in the financial, commercial, manufacturing, industrial and infrastructure sectors), as well as projects and concessions. Thus, in addition to traditional lending products, this banking unit offers a wide range of non-lending services related to project finance, deal structuring associated with business acquisitions, cash management, deposits and funds administration, financial advisory, among others. Also, this banking unit oversees and coordinates our Investment Banking Business (through Banchile Asesoría Financiera).

As of December 31, 2025, the Corporate Banking Unit had approximately 479 debtors out of a total of approximately 2,108 core customers (customers holding either a current account or a loan with us). As of the same date, this banking unit managed total outstanding loans of Ch$4,748,565 million, which represented 12.1% of our total loan book as of the same date.

The following table sets forth the composition of our Corporate Banking Unit’s loan portfolio as of December 31, 2025:

We offer a wide range of products to corporations that include short- and long-term financing, working capital loans, mortgage loans, leasing, long-term syndicated loans and factoring, as well as investment banking services offered by our subsidiary Banchile Asesoría Financiera S.A. We also offer cash management services, including payment services (payrolls, suppliers, pensions, dividends, etc.), collection services and connections to international funds transfer networks, as well as traditional deposit products, in particular current accounts.

In cash management, as of December 31, 2025, we were party to approximately 13,324 payment service contracts and approximately 847 collection service agreements with corporations. We believe that cash management and payment service contracts provide us with a source of low-cost deposits and the opportunity to cross sell our products and fees to payees, many of whom maintain accounts with us. Under our collection contracts, we act as a collection agent for our corporate customers, providing centralized collection services for their accounts receivable and other similar payments. For the year ended December 31, 2025, joint volumes associated with collection and payment agreements increased by approximately 33.4% when compared to 2024.

In order to provide highly competitive and differentiated services, in conjunction with our Treasury segment, our Corporate Banking Unit offers its customers diverse solutions to meet their liquidity, short-term loans and hedging needs. Similarly, we offer derivative products, which we believe have become increasingly important, especially those associated with Chilean peso-U.S. dollar and UF-U.S. dollar forward contracts, cross currency swaps, interest rate swaps and options, among other derivative products.

In addition, the Corporate Banking Unit offers specialized services of assets custody and financial advisory in diverse matters such as capital increases, purchase and sale of shares, private equity placements, public share offerings, mergers and acquisitions, capital markets, initial public offerings and bond placements.

In recent years, the market for loans to corporations in Chile has reduced margins due to increasing competition and moderate expansion in terms of borrowing. More recently, some local companies have raised long-term financing in the local and foreign capital markets. For this reason, we have focused on optimizing the profitability in this segment by enhancing our cross selling through the generation and enhancement of fee-based services, such as payroll processing, dividend payments and billing services, as well as computer banking services. This strategy has enabled us to maintain profitable and long-term relationships with our corporate customers while preserving the ability to grant loans when appropriate business opportunities arise.

In 2025, the Corporate Banking Unit continued to develop digital capabilities and update its products and services to enhance customer experience. This banking unit also strengthened the monitoring of commercial performance through the adoption of digital tools, improved prioritization and tracking of opportunities in the commercial pipeline and increased the effectiveness of campaigns through better segmentation and monitoring. Notwithstanding these efforts, 2025 was a challenging year for this banking unit due to macroeconomic and business dynamics. As a result, total loans managed by this banking unit declined 14.3% compared to 2024, mainly driven by lower demand for loans from corporations, the maturity of specific trade finance operations, and the emergence of alternative funding sources for customers in the capital markets.

Special Businesses Banking Unit

The Special Business Banking Unit provides tailored financial products and services to the real estate and construction industries, as well as family offices. Thus, in addition to traditional lending products, this area offers a wide range of non-lending services related to project finance, deal structuring associated with business acquisitions, cash management, custody services, deposits and funds administration, investment banking, derivative instruments, among others.

As of December 31, 2025, our Special Businesses Banking Unit had approximately 678 borrowers out of a total of 4,874 core customers (those holding either a current account or a loan with us). In addition, as of the same date, loans granted by this area accounted for Ch$2,652,133 million, which represented 6.8% of our total loans.

The following table displays the loan portfolio composition of the Special Businesses Banking Unit as of December 31, 2025:

In 2025, the Special Businesses Banking Unit continued to deploy a differentiation strategy focused on the family office sub-segment. In this group of customers, relationships play a significant role and, therefore, this area has sought to strengthen the team’s capabilities while coordinating with certain of our subsidiaries in order to widen the value propositions by providing customers with an array of wealth management services and products tailored to their needs. Furthermore, over the past year, the Special Businesses Banking Unit strengthened its core services, including custody and trust services, as well as cash management, in order to remain a primary provider to its customers. In terms of loan balances, the Special Businesses Banking Unit recorded annual growth of 2.9% in total loans during 2025, driven by commercial loans and, to a lesser extent, leasing.

Large Companies Banking Unit

Our Large Companies Banking Unit provides a broad range of financial products and services to companies with annual sales that range from UF70,000 (approximately Ch$2,781.0 million as of December 31, 2025) to UF3.0 million (approximately Ch$119,183.9 million as of December 31, 2025). Customers served by this banking unit are those related to the commercial, manufacturing, agricultural, forestry, fishing and infrastructure sectors, among others.

As of December 31, 2025, this banking unit had 9,018 debtors out of a total of 19,070 core customers (those holding either a current account or a loan with us). Loans granted by the Large Companies Banking Unit amounted to Ch$5,347,288 million as of the same date, which represented 13.6% of our total loans.

The following table sets forth the loan portfolio composition of the Large Companies Banking Unit as of December 31, 2025:

Products and services offered by this banking unit are mainly related to commercial loans, lines of credit, trade finance and foreign currency transactions, factoring services, leasing, non-residential mortgage loans, syndicated loans, investment banking and financial advisory services for mergers and acquisitions, debt restructuring assistance, payments and collections services, current accounts and related saving services, corporate credit cards, cash and investment management, derivative contracts to hedge against currency or interest rate fluctuations, insurance brokerage, among other traditional and tailored services. Also, this banking unit is in charge of coordinating and overseeing our Factoring Business, our Leasing Business and our Trade Finance Business.

The Large Companies Banking Unit aims to provide its customers with excellent service based on proactive financial support that enhances long-term relationships with customers. Over time, the banking unit has developed service models intended to take advantage of synergies arising from the interaction of account and specialized support executives responsible for ensuring comprehensive customer service. These models have enabled the Large Companies Banking Unit to strengthen customer relationships and product offerings.

In 2025, the Large Companies Banking Unit continued to prioritize a customer-centric approach by improving value offerings in order to provide more diverse lending products amid an economic slowdown. Even though this banking unit experienced a decrease of 0.5% in total loans in 2025 compared to 2024, mainly driven by the contraction in trade finance and commercial loans, it recorded growth in certain lending products through revised value offerings aimed at recovering its competitive position. In particular, leasing loans recorded a 4.1% increase in year-end balances.

Treasury Segment

Our Treasury segment provides a wide range of financial services to our customers, including currency intermediation, forward contracts, interest rate swaps, transactions under repurchase agreements and investment products based on bonds, mortgage finance bonds and deposits.

In addition, our Treasury segment is focused on managing currency, interest rate and term mismatches, ensuring our liquidity adequacy, managing the investment portfolio and trading fixed-income, foreign exchange and derivative instruments. This segment also manages mismatches with the aim of securing a suitable financing structure and diversifying its sources of financing.

The Treasury segment is also responsible for: (i) the issuance of short and long-term senior bonds, as well as long-term subordinated bonds, in Chile or abroad, (ii) monitoring compliance with regulatory deposit limits, technical reserves and maturity and rate matches/mismatches in the banking book, and (iii) monitoring our adherence to the security margins defined by regulatory limits, and risk limits for interest rate, currency and investment gaps. This segment continually monitors the Bank’s cost of funding by benchmarking with the rest of the local financial system and financing alternatives in Chile or abroad.

In 2025, our Treasury segment continued to develop a funding diversification strategy by conducting important transactions, principally in Chile. This strategy is aimed at maintaining a competitive cost of funding that supports the value offerings we provide to our wide customer base, improving our liquidity and managing financial exposures in the banking book by issuing debt of longer maturities that match long-term assets. For that reason, we are continually seeking alternative sources, types of instruments and markets. We generally conduct international bond issuances only if the cost (including costs of interest rate swaps and other transactional expenses) is below the cost of raising funds locally and the currency or interest rate exposure is fully hedged via cross currency swaps.

We are constantly striving to diversify our liability structure in terms of sources, types of instruments and markets with the aim of maintaining a competitive cost of funding and improving our liquidity. In 2025, we carried out the following debt placements:

The funding functions carried out by our Treasury area are complemented by our international area, namely International Financial Institutions (“IFI”), which manages relations with correspondent banks worldwide, facilitating international payments and obtaining foreign currency financing for us. As of December 31, 2025, we have established a network of approximately 600 foreign banks, among which we maintained credit relationships with approximately 125 correspondent banks, from which we maintained 15 account relationships. IFI played an important role in structuring international transactions aimed at diversifying our funding.

From the business perspective, our Treasury segment recorded total operating income before expected credit losses of Ch$67,285 million in 2025, which was Ch$6,455 million higher than the amount recorded in 2024. This performance was primarily attributable to higher revenues generated by our Debt Securities desk as a result of favorable movements in local interest rates during 2025, particularly in the second and fourth quarters of the year. In addition, specific changes in U.S. dollar-denominated mid- and long-term interest rates during the third quarter of 2025 benefited the fair value adjustments of our U.S. dollar fixed-income portfolio. To a lesser extent, these interest-rate dynamics also affected the funding cost of fixed-income positions, consistent with the downward trend in short-term rates during 2025 following the monetary policy easing by the Central Bank. These effects more than offset the impact of higher impairment of financial instruments and lower income from the management of interest rate and inflation indexation gaps in the banking book (a portion of which is allocated to this segment).

Regarding the management of our securities portfolio, as of December 31, 2025, our total investment portfolio amounted to Ch$7,545,101 million and was composed of financial instruments measured at fair value through other comprehensive income that totaled Ch$3,560,203 million, securities held for trading measured at fair value through profit or loss amounting to Ch$3,523,961 million, and financial instruments measured at amortized cost totaling Ch$460,937 million. As for the type of instruments included in our securities portfolio, as of December 31, 2025, 58.8% consisted of securities issued by the Central Bank and the Chilean Government, 33.3% consisted of securities issued by local financial institutions, and 8.0% consisted of securities issued by non-financial Chilean corporate issuers, foreign issuers, and other securities. Our investment strategy is designed to supplement our expected profitability, risks and projections of economic variables while adhering to the regulatory guidelines and internal limits defined by our finance, international and market risk committee. In this regard, neither proprietary trading nor speculation on equity holdings are business goals for us and, therefore, equity instruments only represented 0.16% of our total investment portfolio as of December 31, 2025.

Subsidiaries

We have made several strategic long-term investments in financial services companies that are engaged in activities complementary to our commercial banking activities. In making these investments our goal is to develop a comprehensive financial group capable of meeting the diverse financial needs of our current and potential customers by offering traditional banking products and specialized financial services through our different subsidiaries.

The following table sets forth information with respect to our financial services subsidiaries in accordance with their statutory financial statements as of December 31, 2025:

The following table sets forth information with respect to our ownership interest in our financial services subsidiaries as of December 31, 2025:

Securities Brokerage Services

We provide securities brokerage services through Banchile Corredores de Bolsa S.A. is registered as a securities broker with the CMF, the regulator of Chilean publicly listed companies, and is a member of the Santiago Stock Exchange and the Chilean Electronic Stock Exchange. Since it was founded in 1989, Banchile Corredores de Bolsa S.A. has provided stock brokerage services, fixed income investments and foreign exchange products to individuals and companies through our branch network. In early 2009, Citibank Agencia de Valores S.A. merged with Banchile Corredores de Bolsa S.A.

During the year ended December 31, 2025, Banchile Corredores de Bolsa S.A. recorded an aggregate stock trading turnover on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange that amounted to approximately Ch$14,258,509 million, which represented a 13.1% market share within the Chilean stock market.

Also, as of December 31, 2025, Banchile Corredores de Bolsa S.A. had equity amounting to Ch$186,447 million and, for the year ended December 31, 2025, recorded net income of Ch$37,524 million, which represented 3.2% of our consolidated net income for that period.

Mutual and Investment Fund Management

Since 1980, we have provided mutual fund management services through Banchile Administradora General de Fondos S.A. As of December 31, 2025, according to data published by the Chilean Association of Mutual Funds, Banchile Administradora General de Fondos S.A. was the largest mutual fund manager in Chile, managing approximately 22.5% of all Chilean mutual funds’ assets. Also, as of December 31, 2025, Banchile Administradora General de Fondos S.A. operated 40 mutual funds and had Ch$15,834,009 million in assets under management owned by 468,022 corporate and individual investors. As of the same date, Banchile Administradora General de Fondos S.A. operated 41 public investment funds. Banchile Administradora General de Fondos S.A. managed Ch$2,204,779 million in net assets associated with these public investment funds on behalf of 2,119 participants. As of December 31, 2025, Banchile Administradora General de Fondos S.A. managed five private investment funds of Ch$58,378 million in net assets associated with these private investment funds on behalf of 54 participants. During 2025, Banchile Administradora General de Fondos S.A. created one new mutual fund and two new public investment funds.

The mutual and investment funds mentioned above are managed by Banchile Administradora General de Fondos S.A., but neither the Bank nor Banchile Administradora General de Fondos S.A. have ownership of these funds and, accordingly, they are not booked in our audited consolidated financial statements.

The following table sets forth information regarding the various mutual funds managed by Banchile Administradora General de Fondos S.A. as of December 31, 2025:

The following table sets forth information regarding the investment funds managed by Banchile Administradora General de Fondos S.A. as of December 31, 2025:

As of December 31, 2025, Banchile Administradora General de Fondos S.A. had equity of Ch$53,066 million and, for the year ended December 31, 2025, net income of Ch$47,377 million, which represented 4.0% of our 2025 consolidated net income.

Insurance Brokerage

We provide insurance brokerage services to our customers through Banchile Corredores de Seguros Limitada. In 2000, we began to offer life insurance policies associated with consumer loans and non-credit related insurance to our individual customers and the public. As of December 31, 2025, Banchile Corredores de Seguros Limitada had equity of Ch$4,860 million and, for the year ended December 31, 2025, it recorded net income of Ch$6,623 million, which represented 0.6% of our 2025 consolidated net income. According to data published by the CMF, as of December 31, 2025, Banchile Corredores de Seguros Limitada had a 2.3% market share in the total amount of life and casualty insurance policies (in Chilean pesos) sold by insurance brokerage companies in Chile, including life annuities.

Since 2019 we have partnered with Chubb Seguros Chile S.A. and Chubb Seguros de Vida Chile S.A., local subsidiaries of Chubb Limited, as our exclusive provider of life and non-life insurances to be distributed by our insurance brokerage subsidiary. For non-life products, the partnership became effective in June 2019, and for life products, it became effective in January 2020. The partnership does not include life and non-life insurance products that in accordance with local regulation must be publicly auctioned.

Financial Advisory Services

We provide financial advisory and other investment banking services to our customers through Banchile Asesoría Financiera S.A. The services offered by Banchile Asesoría Financiera S.A. are primarily targeted to our corporate customers and include advisory services concerning mergers and acquisitions, restructuring, project finance and strategic alliances. As of December 31, 2025, Banchile Asesoría Financiera S.A. had equity of Ch$3,351 million and, for the year ended December 31, 2025, recorded a net loss of Ch$280 million.

Acquiring and Processing Services

We provide products and services that enable customers to connect to payment networks using credit and debit cards, along with other complementary services and activities related to payment card operations. As of December 31, 2025, Banchile Pagos had equity of Ch$12,565 million and recorded a net loss of Ch$3,378 million.

Distribution Channels and Electronic Banking

Our distribution network provides integrated financial services and products to our customers through a wide range of channels. The network includes ATMs, branches, internet-based banking platforms, mobile banking applications and call centers.

As of December 31, 2025, we had a network of 217 retail branches throughout Chile. Our branch system serves as a distribution network for all of the products and services offered to our customers. Our full-service branches accept deposits, cash withdrawals, offer the full range of our retail banking products, such as consumer loans, credit cards, mortgage loans and current accounts, and provide financial and non-financial information to current and potential customers. As of December 31, 2025, we had 1,884 ATMs that were part of a larger network of 7,608 ATMs operating in Chile, of which 4,688 ATMs operate under a network managed by Redbanc S.A.

We also offer electronic banking services to our customers 24 hours a day through our website, www.bancochile.cl, which has tailored homepages for the different segments we serve. Thus, by accessing our website, our individual customers may execute electronic money transfers, access their account balances, pay utilities bills, apply for loans, make time deposits, purchase insurance premiums, invest in mutual funds, and so on. On the other hand, our corporate homepage offers a broad range of services, including the payment of bills, electronic fund transfers, non-charge orders, as well as a wide variety of account inquiries. These services include our office banking service, Banconexion Web for Enterprises, which enables our corporate customers to perform all of their banking transactions from their offices. Our homepage also offers products with exclusive benefits provided by our customer loyalty marketing programs, which enhance our relationships with customers. Through the jointly administered website of Banchile Administration General de Fondos and Banchile Corredores de Bolsa, our mutual funds and securities brokerage subsidiaries, respectively, we also provide customers interested in investing and saving their funds with an internet-based platform on which they can trade stocks and currencies, make time deposits and take positions in mutual funds, foreign stock markets, investments funds and derivatives. Our foreign trade customers can rely on our international business homepage, www.bancochile.com, which enables them to inquire about the status of their foreign trade transactions and perform transactions, such as opening letters of credit, recording import collection and hedging on instructions and letters of credit.

Also, we provide our customers with access to a 24-hour phone-bank through which they can access account information and execute certain transactions. This service, through which we receive nearly 335,145 calls per month on average, has enabled us to develop customer loyalty campaigns, sell financial products and services, answer specialized inquiries and receive and resolve complaints by customers and non-customers.

Lastly, over the last years we have devoted efforts to enhance our mobile banking platforms by developing and launching diverse applications, including the mobile applications MiBanco, MiBanconexion, MiPago, and MiBeneficio. Similarly, we launched MiCuenta, MiPass, and MiSeguro. MiBanco is a mobile banking platform that enables our customers to perform most of the operations they can execute on our website, such as accessing their account balances, making bill payments and electronic money transfers, carrying out cash advances from credit cards to checking accounts. MiBanconexion is an application designed for treasury managers of companies or entrepreneurs, which allows our customers to make massive transfers, pay their use of credit lines and check movements in their demand account, among other functionalities. MiPago is a specialized mobile application that permits requests for reimbursements from other Banco de Chile’s customers and performs the transaction by generating and scanning a QR code, which reinforces the security standards for these types of operations. MiCuenta is a mobile application that enables users to make monthly payments associated with utility bills and other types of services. MiPass is a password-generating application that, among other features, allows users to set a list of money transfer recipients to make transfers without requiring another password-generating device. Also, we continued to expand our digital banking offerings by launching the new mobile application called MiInversion. This application serves as a portfolio management mobile platform for retail customers by enabling them to manage their investments in equity, fixed-income and mutual funds. Furthermore, we added new functionalities to these mobile applications by incorporating an on/off service for credit and debit cards in case of theft, misplacement or other security issues detected by the user, authorization of web transactions with MiPass, biometric access to MiBanco and MiBanconexion, through fingerprint, onsite payment in shops and commerce through MiPago, among other features. Likewise, we also added new functionalities by expanding our RedGiro service to permit our customers to perform transactions through their smartphones and added new functionalities to MiInversion, through which our customers are able to invest in time deposits while exchanging foreign currency. Also, we launched Pago Fácil, a payment solution that allows companies to pay us and other banks fully online at any time.