Banks Banks. Banco CMF S.A. Banks / Argentina. Full Rating Report. Key Rating Drivers. Factors that could lead to a change in rating.

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1 Banks Banco CMF S.A. Full Rating Report Ratings National Long Term Debt Short Term Debt Outlook Long Term National Rating Financial Data A(arg) A1(arg) Stable In Million ARS P Assets Net Equity Net Result ROA (%) ROE (%) Equity/Assets (%) Related Reports 2012 Outlook, Southern Cone Banks, Dec Analysts Cecilia Garófalo cecilia.garofalo@fitchratings.com Darío Logiódice dario.logiodice@fitchratings.com Key Rating Drivers Banks / Argentina Adequate historical performance: At the closing of fiscal year 2011, Banco CMF S.A. (CMF) continued to show good performance and an adequate profitability base (ROA of 1.97% and ROE of 18.16%) in line with the bank s historical performance. The bank s net income reached $51.8 million, 15.9% above 2010, mainly driven by net interest margin evolution as a result of portfolio dynamics, as well as by an increase in implicit rates, leading to a wider spread (8.87% at December 2011 vs. 5.03% at December 2010). Besides, the bank s good historical efficiency levels coupled with the slight increase in loss loan provisions in line with the bank s asset quality, have contributed to such result. In the following months, CMF s challenges will be related to evolution of rates and their pressure on financial margin. Market franchise: The bank s strategy is aimed at providing high-quality financial assistance to medium- and large-sized companies, delivering tailor-made services, including financing and advisory services, through a small and professional structure. Satisfactory asset quality: Commercial loans account for the larger portion of CMF s total loan book, in line with its business model. At December 2011, the bank s total loan book reported a rise of 27.5%, driven both by commercial loans (+18.7%, mostly represented by documents) and consumer loans (79.4%). Furthermore, CMF has maintained adequate asset quality ratios; non-performing loans remained low (1.2%) and below the average for the Argentine Financial System (AFS) (1.4% at December 2011), while loan loss reserve coverage is ample (283.1%). Loan book concentration is historically high, due to the reduced number of customers (the ten major debtors represent 18% of total loans). It should be noted that there was no bad debt within the first 50 exposures. Adequate liquidity: Historically, CMF s funding has been largely from deposits (66.7% of total liabilities) and, to a lesser degree, repos and interbank loans. Deposit stocks increased by 65.2% during 2011, especially in savings accounts (+119%) and term deposits (+61.5%), with an almost equitable distribution between demand and term deposit accounts. Furthermore, deposits have been highly concentrated (the first 10 exposures representing 54%), commensurate with the bank s business model, thus maintaining ample liquidity ratios. The quick ratio (cash assets + Argentine Central Bank LEBAC bills/nobac notes + loans to financial sector/deposits) amounts to 55.5%, above the average for the AFS (39.9% at December 2011). Adequate capitalization: Even though the net equity-to-asset ratio (10.3%) is below the average for the AFS (11.1%), due to strong asset growth (+40.4%) and dividend payout ($30 million), the Fitch Core Capital ratio represents 16.9% of the bank s risk-weighted assets, considered to be adequate. Factors that could lead to a change in rating Weakening of liquidity and asset quality: A severe weakening of the environment with an adverse effect on asset quality and profitability could lead to a downgrade, although the large portion of commercial loans in the total loan book was positively weighted. In addition, a rise in Argentina s sovereign rating could trigger a rating action on financial entities though this is not expected in the medium term.

2 Profile CMF (formerly Corporación Metropolitana de Finanzas S.A.) was originally a financial services provider. It was incorporated on June 20, 1978 under the laws of Argentina. Later, on April 10, 1996, Corporación Metropolitana de Finanzas was licensed by BCRA resolution 208/96 to operate as a bank. Then, on June 11, 1998, the Bank s Special Stockholders Meeting authorized a change of name to Banco CMF S.A. CMF is owned by three individual shareholders: José Alberto Benegas Lynch (57%), Miguel Tiphaine (35%) and Ricardo Orgoroso (8%). All three shareholders are senior members of the Board of Directors. The bank operates as a single branch and has a small organizational structure, which makes it flexible when designing and rendering tailor-made financial services to its Customers meeting their specific needs. With a limited market share, CMF ranks 33rd in assets, deposits, and net equity out of 80 banks. Related Criteria Global Financial Institutions Rating Criteria, 16 Ago Rating Manual filed with the CNV (Argentine Securities Commission) The bank s strategy is focused on rendering high-quality financial assistance to medium- and large-sized companies. To such end, it provides customized services seeking customer loyalty and a long term relationship with a relatively small number of customers (about 300 as of December 2011), gaining deep insight of the market sectors where they operate. Thus, in addition to financing, CMF provides advisory services and products related to investing in international markets. In line with its strategy, its small and professional structure allows it to attain greater flexibility to meet market needs. As from fiscal year 2010, the bank s strategy has contemplated an increase in the consumer loan book in order to take advantage from the benefits deriving from such growth. It should be noted that this development is not carried out directly but rather through portfolio discount or the purchase of financial trust debt securities from banks with a sound track record, experience in the development of this kind of product, and reduced credit risk. Thus, CMF provides a wide range of services which largely involve the granting of loans, deposits, securities trading (mainly, on behalf of its corporate customers), foreign trade transactions and investment bank services. In addition, the bank has provided financial trust administration services (as Trustee) in a series of transactions. On the other hand, the bank owns a 99% equity interest in Eurobanco Bank Ltd., a bank incorporated under the laws of The Commonwealth of The Bahamas, thus expanding its international distribution network, and has a controlling interest in Metrocorp Sociedad de Bolsa S.A., a brokerage firm. Corporate Governance The bank maintains adequate governance standards, in line with its business model. Its shareholders play an active role in the decision-making process through various committees (audit, IT, credit, finance and treasury, human resources, AML, among other), which meet regularly. Also, in their capacity as Board members, they are responsible for defining and monitoring the risk assumed, delegating its administration to separate and independent bodies. Therefore, CMF maintains a decentralized structure with clearly separate functions and responsibilities, embodied in the General Management (reporting to the bank s Board), which includes nine managerial divisions (Accounting and Informative Regimes, Operating Risk, Risks, Commercial, Finance, International, Systems, Operations and Administration). Banco CMF S.A. 2

3 CMF s financial statements are prepared according to the accounting standards established by the Argentine Central Bank (BCRA). Our analysis of the bank s condition is based on the consolidated financial statements as of December 31, 2011, audited by Pistrelli, Henry Martin y Asoc., who stated in their annual opinion that these reasonably present, in all material aspects, the financial condition of Banco CMF S.A., except for the difference in valuation criteria of the accounting standards issued by the CPCECABA (Consejo Profesional de Ciencias Económicas de Buenos Aires) and those of the BCRA. Performance Operating Environment Over the last year, the country s economy has faced a favorable situation, with sustained GDP growth over the last years mostly fueled by the increase in consumption and gross investment. In 2012, a deceleration is expected in the growth of Argentina s business partners due to the commodity prices stagnation, and therefore, though at a slower pace, Argentina s economy is expected to continue growing and developing favorably. Regarding the financial system, a growth deceleration and greater challenges related to intermediation margins and asset quality are expected. Inflation might also represent a challenge for financial entities, whose results might be affected by a lower financial margin and a rise in costs. On the other hand, Fitch expects neither a major impairment of its portfolios nor pressure on deposits if the current macroeconomic variables should persist, and consequently the evolution of the financial system is expected to be stable. CMF Performance At the closing of fiscal year 2011 the bank s net income reached $51.8 million, 15.9% above the net income recorded in 2010, with ROA at 1.97% and ROE at 18.16%. These results are mainly based on increased income, mainly stemming from financial margin (+123%) and net fee income (+40.6%). Besides, the adequate increase in non-interest expenses and the loan loss provisions are reflected in operating income which was higher than that recorded in the previous fiscal year (+16.2% against December 2010). Operating Income In FY 2011, financial margin represented a large portion of income flow (90.6% at December 2011 vs % at December 2010). Net interest revenue further showed an upward trend (+123.0%), resulting largely from an increase in interest earned on loans (+118.4%), due to portfolio expansion during the period under review and a rise in implicit active rates, especially in the second semester. Furthermore, a significant increase in interest paid is noted, mainly on deposits, resulting from the rise in passive rates as well as their stock. The dynamics of both flows are reflected in the increase in implicit interest rate spreads: 8.87% at December 2011 against 5.03% at December Historically, CMF s operating revenues (excluding interest) have accounted for approximately half of total income; nevertheless, during 2011, operating revenues continued to decline, mostly attributable to loss from securities. In this regard, it should be noted that, historically, around two thirds of operating revenues stemmed from earnings on the bank s security holdings, whose volatility was weighted by Fitch. Furthermore, the proportion of net fee income is weighted more favorably, being more stable in nature and with a good performance in the fiscal year under review (+40.6%), driven by the increase in fees charged for financial advisory services, check collections, and foreign exchange and trade transactions. Banco CMF S.A. 3

4 Administrative Costs Historically, CMF has posted good efficiency levels in relation to the average for the AFS and Private Banks, being a single branch bank with an organizational structure consistent with its business model. As a result, the bank continues to show a controlled rise in non-interest expenses (+31.7%), which is adequate considering the present context of inflation and renegotiation of collective bargaining agreements. The bank s administrative cost structure reflects a balance between personnel expenses and other administrative costs. Thus, at the closing of FY 2011, efficiency ratios remained stable, both in income (42.8% vs. 62.1% for the AFS) and in assets (3.1% vs. 5.8% for AFS). Loan Loss Provisions Loan loss provisions reported a 20% increase in the fiscal year under review, in line with non-performing loans. As a result, CMF maintains adequate loan loss reserve coverage (283.1%) as well as loan loss reserve coverage-to-total loans ratio (3.59%), above the average for Private Banks (2.38%), continuing with the bank s prudent policies. Furthermore, loan loss provisions still account for a significant portion of income before provisions, as well as earning assets (26.9% and 1.5%, respectively). Outlook For FY 2012, the bank is expected to continue reporting adequate profitability ratios, in line with its historical performance, with a moderate loan book growth commensurate with the entity's expected performance, maintaining present asset quality, good efficiency ratios and adequate liquidity ratios, in accordance with its proper risk administration. Risks Risk Administration As CMF is a single branch bank, risk control is centralized and closely monitored by the General Management and the Board, both being involved in each of the risk committees for the follow-up of the various types of risk. Given the bank s business model, its major risk is credit risk. Credit Risk For credit risk administration purposes, CMF has established a procedure for credit quality assessment, both to determine the selection criteria of potential corporate customers and to anticipate changes in the counterparts solvency ratios. The process starts from the first contact between the Credit Risk Management and potential customer, selected following an analysis of the macro- and micro-economic aspects of the relevant industry, and among a range of companies selected for each sector. First of all, the customer s risk is assessed by through collection of information and successive interviews in order to determine the customer s economic and financial condition and the perspectives of the business to be financed with the purpose of defining the relationship with the customer, its rating and the limit and type of assistance. Finally, the application is submitted to the Credit Committee, which meets on a weekly basis, and subsequently approved by a minimum of two and a maximum of four bank managers (depending on the amounts) for loans below 2.5% of the bank s net equity; however, Board members approval is required when the loan amount exceeds this parameter, as well as for debtors credit ratings and setting-up of provisions. Furthermore, for each financing agreement, the Operations Department conducts a performance review of technical ratios. Periodically, a review is made of customers credit quality, structured in relation to loan amounts and adjusted stockholders equity (responsabilidad patrimonial computable, in Spanish), and comprising the entire loan book at the closing of the fiscal year under review. Banco CMF S.A. 4

5 In line with its business model, CMF s loan book mostly comprises commercial loans (79.5%), with a growing portion of consumer loans, though still representing a lower share of total loans (20.4% at December 2011 vs. 14.5% at December 2010), commensurate with the bank's strategy to capitalize on some of the advantages of overall consumer growth. It should be noted that consumer loan book results from the acquisition of associated loans (personal loans or loans for the purchase of specific assets), applied by entities rated by the bank and specialized in that segment. At December 2011, the total loan book recorded a 27.5% rise [against the previous year], driven by commercial loans (+18.7%), especially documents, and by consumer loans (+79.4%). Furthermore, the bank maintained adequate asset quality ratios, while non-performing loans remained low (1.2%), below the average for the AFS (1.4% at December 2011). On regarding loans books separately, it is noted that non-performing commercial loans remain at significantly low levels (0.3%) and non-performing consumer loans stand at a more suitable level for these kinds of loans (4.8%), which is adequate for that segment. Loan loss reserve coverage remains considerably ample (283.1%), without exposing the bank s equity to credit risk. Even though a rise in delinquency (though not significant) is expected at systemic level in the forthcoming months, given the large share of commercial loans in the total loan book, Fitch considers that the bank s asset quality will show no significant weakening. In addition, CMF s loan book concentration has been historically high compared to other banks in the system, because of its business approach aimed at providing assistance to a reduced number of key corporate clients (around 300 at December 2011). In line with this approach, the ten major debtors represented 18% of total loans. It should be noted that there was no bad debt within the first 50 exposures, and concentration by business activity was adequate. Market Risk CMF is not significantly active in security trading and maintains a marginal position aimed at capitalizing on market opportunities; at December 2011, the bank's position consisted mostly of government securities. Furthermore, its exposure to the public sector was also reduced, 1.3% of equity, resulting from loans to the public sector ascending to $50 thousand and from holding of government securities at market value. Currency positions and interest rate spreads are reviewed daily and sensitivity analyses are performed in order to reduce the risk of unexpected losses. Loans are short term (around 6 months) and at a floating rate (in general BADLAR + a differential); therefore, the short-term nature of funding poses no significant interest rate risks. Transactions in foreign currency are matched (active position at December 2011: $130.8 million), and, in general, are related to foreign trade transactions. Sources of Funds and Capital Funding and Liquidity Historically, CMF s funding has been largely from deposits (66.7% of total liabilities) and, to a lesser degree, repos and interbank loans. CMF has good access to credit lines, with a considerable number of local and international entities, with over 50% of the agreements currently in place. In this fiscal year, deposit stocks increased by 65.2%, especially in savings accounts (+119%) and term deposits (+61.5%), with an almost equitable distribution between demand and term deposit accounts. Furthermore, deposits have been highly concentrated (the first 10 exposures representing 54%), commensurate with the bank s business model, while its strategy of providing assistance to corporate clients through a small and flexible structure limits the Banco CMF S.A. 5

6 possibility of broadening the deposit base to individuals, in order to atomize these holdings. In addition, there has been an increase in indebtedness (8.6 times at December 2011 vs. 6.4 times at December 2010), although a rise in liquid asset resources should also be noted. In line with this fact, the bank s liquidity ratios are ample. The quick ratio (cash assets + Argentine Central Bank LEBAC bills/nobac notes + loans to financial sector/deposits) amounts to 55.5%, above the average for the AFS (39.9% at December 2011). Capital Banco CMF s solvency is adequate. Even though the net equity-to-asset ratio (10.3%) is below the average for the AFS (11.1%), mostly as a result of asset growth in 2011 (+40.4%) and dividend payout in March ($30 million), the Fitch Core Capital ratio still represents 16.9% of risk-weighted assets, so the bank s capitalization base is deemed adequate. Furthermore, the bank reported a reasonable excess in minimum capital requirements (51.4%). Finally, it should be noted that stockholders will not request the Argentine Central Bank s authorization for dividend payout in FY Banco CMF S.A. 6

7 Exhibit Opinion The Rating Committee, at the meeting held on, affirmed Banco CMF S.A. s Short Term Debt in Category A1(arg) with a stable outlook and its Long Term Debt in Category A(arg). Category A(arg): Shows that the obligations correspond to local issuers with a sound credit quality in relation to other issuers or issues. However, changes in economic situations or conditions could affect repayment capacity in due time and form to a greater extent than those financial obligations rated in higher categories. Category A1(arg): Indicates the strongest capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Under their national rating scale, this rating is assigned to the "best" credit risk relative to all others in the same country. Suffixes "+" or "-" may be appended to a rating to denote relative status within major rating categories and do not alter the definition of the Category to which they are added. The bank s rating reflects adequate historical performance and market franchise in the segment it specializes in (medium-sized companies), its sound liquidity base, good credit quality, and good capitalization in relation to the type of business it develops. CMF s financial statements are prepared in compliance with the accounting standards established by the BCRA. Our analysis of the bank s condition is based on the consolidated financial statements as of December 31, 2011, audited by Pistrelli, Henry Martin y Asoc., who stated in their annual opinion that these reasonably present, in all material aspects, the financial condition of Banco CMF S.A.; except for the difference in valuation criteria of the accounting standards issued by the CPCECABA and those of the BCRA. Information Sources The data provided for the analysis are considered adequate and sufficient, thus the application of category E was unnecessary. The issuer provided, among other, the following information: Audited General Balance Sheet (last December 31, 2011) Audited quarterly financial statements (last September 30, 2011) Information on asset quality Information on liquidity management. Banco CMF S.A. 7

8 Banco CMF Income Statement 31 dic dic dic dic 2008 Year End As % of Year End As % of Year End As % of Year End As % of ARSm Earning ARSm Earning ARSm Earning ARSm Earning Unqualified Assets Unqualified Assets Qualified Assets Unqualified Assets 1. Interest Income on Loans 250,4 12,59 114,6 7,28 88,5 8,04 101,8 11,40 2. Other Interest Income 0,1 0,01 0,1 0,01 0,1 0,01 1,0 0,11 3. Dividend Income n.a. - n.a. - n.a. - n.a Gross Interest and Dividend Income 250,5 12,60 114,7 7,29 88,6 8,05 102,8 11,52 5. Interest Expense on Customer Deposits 63,4 3,19 28,6 1,82 27,8 2,53 38,2 4,28 6. Other Interest Expense 10,7 0,54 7,0 0,44 4,4 0,40 5,8 0,65 7. Total Interest Expense 74,1 3,73 35,6 2,26 32,2 2,93 44,0 4,93 8. Net Interest Income 176,4 8,87 79,1 5,03 56,4 5,13 58,8 6,59 9. Net Gains (Losses) on Trading and Derivatives n.a. - n.a. - n.a. - n.a Net Gains (Losses) on Other Securities -11,3-0,57 48,2 3,06 43,6 3,96 25,9 2, Net Gains (Losses) on Assets at FV through Income Statement n.a. - n.a. - n.a. - n.a Net Insurance Income n.a. - n.a. - n.a. - n.a Net Fees and Commissions 36,0 1,81 25,6 1,63 19,1 1,74 18,7 2, Other Operating Income -6,4-0,32 3,6 0,23 14,6 1,33 17,0 1, Total Non-Interest Operating Income 18,3 0,92 77,4 4,92 77,3 7,03 61,6 6, Personnel Expenses 42,6 2,14 33,7 2,14 28,3 2,57 22,2 2, Other Operating Expenses 40,9 2,06 29,7 1,89 34,2 3,11 34,3 3, Total Non-Interest Expenses 83,5 4,20 63,4 4,03 62,5 5,68 56,5 6, Equity-accounted Profit/ Loss - Operating 0,0 0,00 1,8 0,11-0,7-0,06 0,9 0, Pre-Impairment Operating Profit 111,2 5,59 94,9 6,03 70,5 6,41 64,8 7, Loan Impairment Charge 30,0 1,51 25,0 1,59 15,5 1,41 1,2 0, Securities and Other Credit Impairment Charges 0,0 0,00 0,0 0,00 0,1 0,01 0,1 0, Operating Profit 81,2 4,08 69,9 4,44 54,9 4,99 63,5 7, Equity-accounted Profit/ Loss - Non-operating n.a. - n.a. - n.a. - n.a Non-recurring Income 8,6 0,43 6,3 0,40 12,5 1,14 5,5 0, Non-recurring Expense 0,6 0,03 0,8 0,05 0,7 0,06 1,0 0, Change in Fair Value of Own Debt n.a. - n.a. - n.a. - n.a Other Non-operating Income and Expenses n.a. - n.a. - n.a. - n.a Pre-tax Profit 89,2 4,49 75,4 4,79 66,7 6,06 68,0 7, Tax expense 37,4 1,88 30,7 1,95 21,1 1,92 22,7 2, Profit/Loss from Discontinued Operations n.a. - n.a. - n.a. - n.a Net Income 51,8 2,61 44,7 2,84 45,6 4,14 45,3 5, Change in Value of AFS Investments n.a. - n.a. - n.a. - n.a Revaluation of Fixed Assets n.a. - n.a. - n.a. - n.a Currency Translation Differences n.a. - n.a. - n.a. - n.a Remaining OCI Gains/(losses) n.a. - n.a. - n.a. - n.a Fitch Comprehensive Income 51,8 2,61 44,7 2,84 45,6 4,14 45,3 5, Memo: Profit Allocation to Non-controlling Interests n.a. - n.a. - n.a. - n.a Memo: Net Income after Allocation to Non-controlling Interests 51,8 2,61 44,7 2,84 45,6 4,14 45,3 5, Memo: Common Dividends Relating to the Period n.a. - n.a. - n.a. - n.a Memo: Preferred Dividends Related to the Period n.a. - n.a. - n.a. - n.a. - Banco CMF S.A. 8

9 Banco CMF Balance Sheet 31 dic dic dic dic 2008 Year End As % of Year End As % of Year End As % of Year End As % of ARSm Assets ARSm Assets ARSm Assets ARSm Assets Assets A. Loans 1. Residential Mortgage Loans 18,2 0,63 26,1 1,27 23,4 1,71 43,1 3,36 2. Other Mortgage Loans n.a. - n.a. - n.a. - n.a Other Consumer/ Retail Loans 339,3 11,78 173,9 8,48 81,4 5,94 14,3 1,11 4. Corporate & Commercial Loans 530,0 18,41 490,5 23,93 267,3 19,50 316,4 24,64 5. Other Loans 328,1 11,39 313,0 15,27 129,2 9,43 238,2 18,55 6. Less: Reserves for Impaired Loans/ NPLs 62,3 2,16 38,2 1,86 20,8 1,52 9,0 0,70 7. Net Loans 1.153,3 40,05 965,3 47,09 480,5 35,05 603,0 46,96 8. Gross Loans 1.215,6 42, ,5 48,95 501,3 36,57 612,0 47,66 9. Memo: Impaired Loans included above 22,0 0,76 13,6 0,66 11,5 0,84 5,8 0, Memo: Loans at Fair Value included above n.a. - n.a. - n.a. - n.a. - B. Other Earning Assets 1. Loans and Advances to Banks 121,4 4,22 57,9 2,82 22,3 1,63 9,9 0,77 2. Reverse Repos and Cash Collateral n.a. - n.a. - n.a. - n.a Trading Securities and at FV through Income 58,9 2,05 69,1 3,37 85,3 6,22 11,7 0,91 4. Derivatives n.a. - n.a. - n.a. - n.a Available for Sale Securities n.a. - n.a. - n.a. - 0,0 0,00 6. Held to Maturity Securities n.a. - -0,2-0,01 37,2 2,71 20,1 1,57 7. At-equity Investments in Associates 5,0 0,17 5,1 0,25 3,4 0,25 5,0 0,39 8. Other Securities 11,6 0,40 18,7 0,91 6,8 0,50 0,0 0,00 9. Total Securities 75,5 2,62 92,7 4,52 132,7 9,68 36,8 2, Memo: Government Securities included Above n.a. - 16,2 0,79 n.a. - 6,3 0, Memo: Total Securities Pledged n.a. - n.a. - n.a. - n.a Investments in Property n.a. - n.a. - n.a. - n.a Insurance Assets n.a. - n.a. - n.a. - n.a Other Earning Assets 638,0 22,16 457,8 22,33 464,7 33,90 243,0 18, Total Earning Assets 1.988,2 69, ,7 76, ,2 80,26 892,7 69,51 C. Non-Earning Assets 1. Cash and Due From Banks 835,9 29,03 441,3 21,53 231,3 16,87 356,1 27,73 2. Memo: Mandatory Reserves included above n.a. - n.a. - n.a. - n.a Foreclosed Real Estate 12,8 0,44 3,3 0,16 3,8 0,28 3,9 0,30 4. Fixed Assets 13,6 0,47 13,8 0,67 14,2 1,04 14,8 1,15 5. Goodwill 0,0 0,00 0,0 0,00 0,0 0,00 0,0 0,00 6. Other Intangibles 0,0 0,00 0,0 0,00 0,0 0,00 0,0 0,00 7. Current Tax Assets n.a. - n.a. - n.a. - n.a Deferred Tax Assets n.a. - n.a. - n.a. - n.a Discontinued Operations n.a. - n.a. - n.a. - n.a Other Assets 28,9 1,00 17,9 0,87 21,3 1,55 16,7 1, Total Assets 2.879,4 100, ,0 100, ,8 100, ,2 100,00 Liabilities and Equity D. Interest-Bearing Liabilities 1. Customer Deposits - Current 216,7 7,53 222,6 10,86 252,9 18,45 406,7 31,67 2. Customer Deposits - Savings 686,6 23,85 312,9 15,26 183,4 13,38 49,4 3,85 3. Customer Deposits - Term 820,8 28,51 508,2 24,79 242,2 17,67 255,5 19,90 4. Total Customer Deposits 1.724,1 59, ,7 50,91 678,5 49,50 711,6 55,41 5. Deposits from Banks 115,4 4,01 161,2 7,86 34,8 2,54 76,9 5,99 6. Repos and Cash Collateral n.a. - n.a. - n.a. - n.a Other Deposits and Short-term Borrowings 50,9 1,77 93,7 4,57 63,3 4,62 21,4 1,67 8. Total Deposits, Money Market and Short-term Funding 1.890,4 65, ,6 63,35 776,6 56,65 809,9 63,07 9. Senior Debt Maturing after 1 Year 251,1 8,72 203,3 9,92 41,5 3,03 44,0 3, Subordinated Borrowing n.a. - n.a. - n.a. - 0,0 0, Other Funding n.a. - n.a. - n.a. - n.a Total Long Term Funding 251,1 8,72 203,3 9,92 41,5 3,03 44,0 3, Derivatives n.a. - n.a. - n.a. - n.a Trading Liabilities 378,6 13,15 219,8 10,72 233,7 17,05 152,0 11, Total Funding 2.520,1 87, ,7 83, ,8 76, ,9 78,33 E. Non-Interest Bearing Liabilities 1. Fair Value Portion of Debt 0,0 0,00 0,0 0,00 0,0 0,00 0,0 0,00 2. Credit impairment reserves n.a. - n.a. - n.a. - n.a Reserves for Pensions and Other 0,0 0,00 0,0 0,00 0,1 0,01 0,1 0,01 4. Current Tax Liabilities n.a. - n.a. - n.a. - n.a Deferred Tax Liabilities n.a. - n.a. - n.a. - n.a Other Deferred Liabilities n.a. - n.a. - n.a. - n.a Discontinued Operations n.a. - n.a. - n.a. - n.a Insurance Liabilities n.a. - n.a. - n.a. - n.a Other Liabilities 60,9 2,12 51,8 2,53 41,1 3,00 46,2 3, Total Liabilities 2.581,0 89, ,5 86, ,0 79, ,2 81,93 F. Hybrid Capital 1. Pref. Shares and Hybrid Capital accounted for as Debt n.a. - n.a. - n.a. - n.a Pref. Shares and Hybrid Capital accounted for as Equity n.a. - n.a. - n.a. - n.a. - G. Equity 1. Common Equity 297,2 10,32 275,3 13,43 276,7 20,19 231,0 17,99 2. Non-controlling Interest 1,2 0,04 1,2 0,06 1,1 0,08 1,0 0,08 3. Securities Revaluation Reserves n.a. - n.a. - n.a. - n.a Foreign Exchange Revaluation Reserves n.a. - n.a. - n.a. - n.a Fixed Asset Revaluations and Other Accumulated OCI n.a. - n.a. - n.a. - n.a Total Equity 298,4 10,36 276,5 13,49 277,8 20,27 232,0 18,07 7. Total Liabilities and Equity 2.879,4 100, ,0 100, ,8 100, ,2 100,00 8. Memo: Fitch Core Capital 298,4 10,36 276,5 13,49 277,8 20,27 232,0 18,07 9. Memo: Fitch Eligible Capital 298,4 10,36 276,5 13,49 277,8 20,27 232,0 18,07 Banco CMF S.A. 9

10 Banco CMF Summary Analytics 31 dic dic dic dic 2008 Year End Year End Year End Year End A. Interest Ratios 1. Interest Income on Loans/ Average Gross Loans 21,10 16,29 18,83 16,13 2. Interest Expense on Customer Deposits/ Average Customer Deposits 4,22 3,50 4,12 5,44 3. Interest Income/ Average Earning Assets 12,71 8,58 9,32 9,88 4. Interest Expense/ Average Interest-bearing Liabilities 3,23 2,59 3,28 4,11 5. Net Interest Income/ Average Earning Assets 8,95 5,92 5,93 5,65 6. Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets 7,43 4,05 4,30 5,53 7. Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets 8,95 5,92 5,93 5,65 B. Other Operating Profitability Ratios 1. Non-Interest Income/ Gross Revenues 9,40 49,46 57,82 51,16 2. Non-Interest Expense/ Gross Revenues 42,89 40,51 46,75 46,93 3. Non-Interest Expense/ Average Assets 3,17 3,76 4,92 4,30 4. Pre-impairment Op. Profit/ Average Equity 38,99 35,27 28,42 30,62 5. Pre-impairment Op. Profit/ Average Total Assets 4,23 5,63 5,55 4,93 6. Loans and securities impairment charges/ Pre-impairment Op. Profit 26,98 26,34 22,13 2,01 7. Operating Profit/ Average Equity 28,47 25,98 22,13 30,01 8. Operating Profit/ Average Total Assets 3,09 4,14 4,32 4,83 9. Taxes/ Pre-tax Profit 41,93 40,72 31,63 33, Pre-Impairment Operating Profit / Risk Weighted Assets n.a. 5,73 6,37 6, Operating Profit / Risk Weighted Assets n.a. 4,22 4,96 5,94 C. Other Profitability Ratios 1. Net Income/ Average Total Equity 18,16 16,61 18,38 21,41 2. Net Income/ Average Total Assets 1,97 2,65 3,59 3,45 3. Fitch Comprehensive Income/ Average Total Equity 18,16 16,61 18,38 21,41 4. Fitch Comprehensive Income/ Average Total Assets 1,97 2,65 3,59 3,45 5. Net Income/ Av. Total Assets plus Av. Managed Securitized Assets n.a. 2,40 2,68 3,16 6. Net Income/ Risk Weighted Assets n.a. 2,70 4,12 4,24 7. Fitch Comprehensive Income/ Risk Weighted Assets n.a. 2,70 4,12 4,24 D. Capitalization 1. Fitch Core Capital/Weighted Risks n.a. 16,70 25,12 21,70 2. Fitch Eligible Capital/ Weighted Risks n.a. 16,70 25,12 21,70 3. Tangible Common Equity/ Tangible Assets 10,36 13,49 20,27 18,07 4. Tier 1 Regulatory Capital Ratio n.a. n.a. n.a. n.a. 5. Total Regulatory Capital Ratio n.a. n.a. n.a. n.a. 6. Core Tier 1 Regulatory Capital Ratio n.a. n.a. n.a. n.a. 7. Equity/ Total Assets 10,36 13,49 20,27 18,07 8. Cash Dividends Paid & Declared/ Net Income n.a. n.a. n.a. n.a. 9. Cash Dividend Paid & Declared/ Fitch Comprehensive Income n.a. n.a. n.a. n.a. 10. Cash Dividends & Share Repurchase/Net Income n.a. n.a. n.a. n.a. 11. Net Income - Cash Dividends/ Total Equity 17,36 16,17 16,41 19,53 E. Loan Quality 1. Growth of Total Assets 40,46 49,55 6,74-6,02 2. Growth of Gross Loans 21,14 100,18-18,09-3,33 3. Impaired Loans(NPLs)/ Gross Loans 1,81 1,36 2,29 0,95 4. Reserves for Impaired Loans/ Gross loans 5,13 3,81 4,15 1,47 5. Reserves for Impaired Loans/ Impaired Loans 283,18 280,88 180,87 155,17 6. Impaired Loans less Reserves for Imp Loans/ Equity -13,51-8,90-3,35-1,38 7. Loan Impairment Charges/ Average Gross Loans 2,53 3,55 3,30 0,19 8. Net Charge-offs/ Average Gross Loans -0,04 0,54-4,45-0,19 9. Impaired Loans + Foreclosed Assets/ Gross Loans + Foreclosed Assets 2,83 1,68 3,03 1,57 F. Funding 1. Loans/ Customer Deposits 70,51 96,15 73,88 86,00 2. Interbank Assets/ Interbank Liabilities 105,20 35,92 64,08 12,87 3. Customer Deposits/ Total Funding excl Derivatives 68,41 60,62 64,51 70,74 Banco CMF S.A. 10

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