Over 32 thousand micro and small entrepreneurs received support from BancoEstado due to the contingency in 2019
The entity’s plan "Estamos Contigo” (We are with you) allocated $101,000 million to that segment, with the objective of helping micro and small entrepreneurs reactivate their businesses.
Santiago, January 31, 2020. - The Chairman of the Board of BancoEstado, Mr. Arturo Tagle, disclosed bank management performance during the 2019 public account. In this instance, the Chairman emphasized the fact that during the national contingency, BancoEstado issued its “Estamos Contigo” program, which supported over 32 thousand micro and small entrepreneurs in 2019. This program provided support by deferring payment of fees and funding at a preferential rate.
In addition, due to this plan, BancoEstado supported 53,988 retail customers through dividends payment deferrals and fees at a 0% rate.
In this sense, Mr. Tagle state “the last quarter of 2019 was perhaps the period that hastested us the most and was characterized by the commitment of BancoEstado’s employees. The spirit of the bank emerged to respond to our customers needs”.
As part of the public and social role of BancoEstado, in November 2019, Congress approved an extraordinary capitalization of US$500 million, focused on supporting and ensuring access to funding for micro and small businesses affected by the situation experienced in the country, which in turn, will also contribute towards economic recovery.
The bank’s income before tax during 2019 was $362 billion, which translates into a real 1% decrease when compared to 2018’s $366 billion. Conversely, profits were 20% higher than the industry while there was a 7% efficiency improvement between 2017 and 2019.
In terms of total loans, 2019 experienced a real 5% expansion. In this scenario, the commercial segment grew 6.4%, consumption 4.8% and housing 3.3%.
BancoEstado has come forward as the only bank in 139 communities, providing 2.1 million people with access to a branch, reducing costs and transfer times.
In this manner, in 2019 the bank opened branches in the municipalities of María Pinto, Pelarco, Pemuco and Hualañé, in addition to a new ServiEstado format in Paihuano. By 2020, the plan is to open 9 new offices and reopen 16 that were damaged during the contingency that began last October, where two of them, Collipulli and Colina, were damaged this week.
In 2019, the bank reached 29,275 CajaVecina service points, 4,000 service points more than in 2018. Additionally, during December, the bank registered a record of 43.4 million transactions.
Moreover, 94% of the communities in Chile already have access to Compraquí, through 72,000 shops that have a working point of sale (POS) device. Thus, the acquisition network closed 2019 with 15.5 million transactions. It is worth noting that between the 18th of October and the 21st of October, purchases in stores with this device have tripled.
Another important aspect was the fact that the bank reached 6.5 million digital customers, the novelty being the new version of the application (2.0), which includes whole new features. 4.2 million people are already actively using the application, registering over 180 million financial transactions per month.
In this sense, Mr Tagle said about financial inclusion that “we are convinced it will bring improved well-being for our society, equality of opportunity, growth for the country and more economic transparency and formality”.
With regards to CuentaRUT, BancoEstado has reached 12 million customers. In 2019 the bank launched the new CuentaRUT card, which has an EMV chip which provides better security and the possibility to access international shopping platforms. A total of 3.6 million people were enrolled as CuentaRUT holders in 2019 and purchases abroad have reached $95.5 million USD.
Lastly, the bank channeled the interest of people in low and middle income segments to improve their pensions: 98% of the participants who contracted an APV in financial institutions other than at an AFP, did it through BancoEstado.