BANCO EDWARDS

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BANCO EDWARDS

• Banco Edwards Strategic Vision

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BANCO EDWARDS STRATEGIC VISIONCREATE THE
LEADING BANK

• solid Capital base
• diversified Income sources
• strong Credit quality
• double digit Loan market share
• above average Profitability

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BANCO EDWARDS WHERE MARKETS STRATEGY
High Income (Annual Income in excess of US
21,000)
Individuals
Top Tier Middle Income (Annual Income around
US18,000)
Lower-Middle Income (Annual Income between
US2,500-12,000)
Corporations (Multinationals and Economic groups)
Corporations
Large Companies (Annual sales in excess of US 6
Million)
Middle-Market Companies (Annual sales under US 6
Million)
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BANCO EDWARDS OPPORTUNITIES AVAILABLE IN NEW
SEGMENTS
Large Corporations
Top Tier Middle and LowerMiddle Income
Individuals
Top Tier Middle Income

• Attractive prospects for growth
• Lower level of credit risk
• Lower level of operating expense
• Greater range of fee products
• Bigger sole-managed loans
• Potential for increasing sight deposits

• Leverage high income franchise
• Potential of broadening client base
• More tolerant to fees and spreads

Lower-Middle Income

• Leverage existing presence (Finandes)
• Product and service penetration
• Mass market products

Broader, More Diversified, Income-Generating Base
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BANCO EDWARDS HOW THROUGH WIDER DISTRIBUTION
AND NEW PRODUCTS
Branch Expansion
New Products

• 7 new branches opened in Jan-Sep 00
• 20 additional branches by 2002
• ATMs increased by 56 since Dec 99
• New 50 increase of ATMs by end of 2002

• Factoring
• Securitization
• Bancassurance
• Pension fund management

Broader, Stronger Market Presence and Competitive
Position
Sales Force Since Dec. 99
Technology

• 74 increase in external sales force
• 10 increase in personnel related to business
  areas

• Investments in technology, account for 45 of
  total investment, as of Sep. 00
• Additional 13 USD Mill. budgeted for the 4Q00

Electronic Banking

• Direct banking
• Internet

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BANCO EDWARDS GLOBAL PLAN CURRENT STATUS
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BANCO EDWARDS INVESTMENT HIGHLIGHTS

• Leading franchise.
• Proven ability to grow market share .
• Renewed commitment to conservative credit
  policies.
• Attractive platform for growth in a consolidating
  system.
• Important capital base.
• International long-term foreign currency rating
  equal to Chiles sovereign risk (A- by Fitch,
  Baa1 by Moodys).