NOTE 25
INTEREST INCOME
This item refers to interest earned in the period from the financial assets whose return, whether implicitly or explicitly, is determined by applying the effective interest rate method, regardless of the value at fair value, as well as the effect of hedge accounting (see c).
| a) | For the years ended December 31, 2017, 2016 and 2015 the income from interest, was attributable to the following items: |
| For the years ended December 31, | ||||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||
| Interest | Inflation adjustments | Prepaid fees | Total | Interest | Inflation adjustments | Prepaid fees | Total | Interest | Inflation adjustments | Prepaid fees | Total | |||
| Items | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||
| Resale agreements | 939 | - | - | 939 | 1,488 | - | - | 1,488 | 1,075 | - | - | 1,075 | ||
| Interbank loans | 969 | - | - | 969 | 295 | - | - | 295 | 375 | - | - | 375 | ||
| Commercial loans | 752,013 | 85,389 | 10,525 | 847,927 | 742,432 | 130,904 | 7,659 | 880,995 | 687,464 | 168,752 | 8,494 | 864,710 | ||
| Mortgage loans | 320,041 | 149,303 | 414 | 469,758 | 304,116 | 228,081 | 7,012 | 539,209 | 259,941 | 286,437 | 23,191 | 569,569 | ||
| Consumer loans | 612,932 | 363 | 4,738 | 618,033 | 604,152 | 660 | 4,318 | 609,130 | 586,385 | 3,418 | 3,706 | 593,509 | ||
| Investment instruments | 74,000 | 5,797 | - | 79,797 | 75,808 | 2,916 | - | 78,724 | 60,004 | 7,616 | - | 67,620 | ||
| Other interest income | 12,172 | 1,538 | - | 13,710 | 11,136 | 2,445 | - | 13,581 | 10,111 | 5,831 | - | 15,942 | ||
| Interest income not including income from hedge accounting | 1,773,066 | 242,390 | 15,677 | 2,031,133 | 1,739,427 | 365,006 | 18,989 | 2,123,422 | 1,605,355 | 472,054 | 35,391 | 2,112,800 | ||
| b) | For the years ended December 31, 2017, 2016 and 2015, the expense from interest expense, excluding expense from hedge accounting, is as follows: |
| For the years ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Interest | Inflation adjustments | Total | Interest | Inflation adjustments | Total | Interest | Inflation adjustments | Total | ||||
| Items | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |||
| Demand deposits | (13,851) | (695) | (14,546) | (16,003) | (1,043) | (17,046) | (13,875) | (1,343) | (15,218) | |||
| Repurchase agreements | (6,514) | - | (6,514) | (2,822) | - | (2,822) | (6,893) | - | (6,893) | |||
| Time deposits and liabilities | (341,821) | (20,509) | (362,330) | (399,720) | (38,946) | (438,666) | (346,174) | (47,370) | (393,544) | |||
| Interbank loans | (26,805) | - | (26,805) | (19,803) | - | (19,803) | (14,998) | (2) | (15,000) | |||
| Issued debt instruments | (220,027) | (76,170) | (296,197) | (197,973) | (105,452) | (303,425) | (183,561) | (113,029) | (296,590) | |||
| Other financial liabilities | (2,946) | (303) | (3,249) | (3,008) | (781) | (3,789) | (3,070) | (1,180) | (4,250) | |||
| Other interest expense | (5,236) | (4,973) | (10,209) | (5,211) | (8,874) | (14,085) | (3,456) | (14,776) | (18,232) | |||
| Interest expense not including expenses from hedge accounting | (617,200) | (102,650) | (719,850) | (644,540) | (155,096) | (799,636) | (572,027) | (177,700) | (749,727) | |||
c) For the years ended December 31, 2017, 2016 and 2015, the income and expense from interest is as follows:
| For the years ended December 31, | |||||
| 2017 | 2016 | 2015 | |||
| Items | MCh$ | MCh$ | MCh$ | ||
| Interest income not including income from hedge accounting | 2,031,133 | 2,123,422 | 2,112,800 | ||
| Interest expense not including expense from hedge accounting | (719,850) | (799,636) | (749,727) | ||
| Net Interest income (expense) from hedge accounting | 1,311,283 | 1,323,786 | 1,363,073 | ||
| Hedge accounting (net) | 15,408 | (42,420) | (107,867) | ||
| Total net interest income | 1,326,691 | 1,281,366 | 1,255,206 | ||