Introduction The principal types of risk inherent in Santander-Chile’s business are market, liquidity, operational and credit risks. The effectiveness with which we are able to manage the balance between risk and reward is a significant factor in our ability to generate long term, stable earnings growth. Toward that end, our Board and senior management places great emphasis on risk management. For more information on our Integral Risk Committee, Audit Committee, Asset and Liability Committee and Market Committee, see “Item 6. Directors, Senior Management and Employees.” 153 Table of contents Risk Department All issues regarding risk in the Bank are the responsibility of the Bank’s Risk Department. The Risk Department reports to the CEO but has full independence, and no risk decisions can be made without its approval. The following diagram illustrates the governance of our risk division including the committees with approval power: Below is an organizational chart of the Risk Department: 1.Credit Risk The impairment model applies to all financial assets measured at amortized cost and fair value through other comprehensive income (FVOCI), including commitment and contingent loans. Investments in equity are outside of the scope of the new impairment requirements. For more information, see “Item 5 Operating and financial review and prospects—Critical Accounting Policies.” The Bank has defined default on the following basis: •Corporate: when exposure is more than 89 days past due, it has been restructured, it is in judicial collection, pulling effect defined as the entire outstanding amount on any loan which has an installment 90 days or more past due. 154 Table of contents •Other: when exposure is more than 89 days past due, it has been restructured, it is in judicial collection, it has been written off, or has been identified as impaired by an internal risk committee. An exposure will be considered as defaulted when the past-due amounts of an exposure exceed materiality thresholds for 89 or more consecutive days. The Bank considers reasonable and supportable information that is available without undue cost or effort and that may affect the credit risk on a financial instrument, including forward looking information to determine a significant increase in credit risk since the initial recognition. Forward looking information includes past events, current conditions and forecasts or future economic conditions (macro-economic data). Credit risk assessment and forward-looking information (including macro-economic factors), includes quantitative and qualitative information based on the Bank’s classification policy: a.Adverse changes in the financial situation, such as a significant increase in debt levels. b.Significant drops in turnover or, in recurring cash flows. c.Significant narrowing of operating margins or recurring income. d.Significant adverse changes in credit risk cost, due to changes in this risk after initial recognition. e.Other changes in the transaction’s credit risk that would impact on conditions being significantly different if the transaction were originated or reissued on the reference date. f.An actual or expected reduction of the integral credit rating of the operation (client’s integral rating) or decrease in the performance score. g.An actual or expected significant decrease in the price or external credit rating of the mail operation, as well as other external market indicators of the credit risk for similar operations with the same expected life. The Bank will classify an operation as Stage 2 when the past-due amounts of an exposure exceed materiality thresholds for 90 or more consecutive days. Expected credit loss measurement The ECL are the probability-weighted estimate of credit losses, i.e. the present value of all cash shortfalls. A cash shortfall is the difference between the cash flows that are due to an entity in accordance with the contract and the cash flows that the entity expects to receive.The Bank considered a multi-factor analysis to perform credit risk analysis. The Bank conducts a corporate evaluation to assess whether objective evidence of impairment exists for loans that are individually significant, and then conducts a separate evaluation of loans that are not individually significant and loans which are significant but for which there is no objective evidence of impairment available under custom monitoring. Credit Risk Governance The Risk Division, our credit analysis and risk management group, is largely independent of our business areas. Risk evaluation teams interact regularly with our clients. For larger transactions, risk teams in our headquarters work directly with clients when evaluating credit risks and preparing credit applications. Various credit approval committees, all of which include Risk Division and Commercial Division personnel, must verify that the appropriate qualitative and quantitative parameters are met by each applicant. Each committee’s powers are defined by our Board of Directors. Santander-Chile’s governance rules establish an Integral Risk Committee. This committee is responsible for revising and following all risks that may affect us, including reputational risk, allowing for an integral risk management. This committee serves as the governing body through which the Board supervises all risk functions. It also evaluates the reasonability of the systems for measurement and control of risks. This Committee includes the Chairman of the Board and five Board members. 155 Table of contents The Board has delegated the duty of credit risk management to the Risk Committee, as well as to the Bank’s risk departments, whose roles are summarized below: •Formulate credit policies by consulting with the business units, meeting requirements of guarantees, credit evaluation, risk rating and submitting reports, documentation and legal procedures in compliance with the regulatory, legal and internal requirements of the Bank. •Establish the structure to approve and renew credit requests. The Bank structures credit risks by assigning limits to the concentration of credit risk in terms of individual debtor, debtor group, industry segment and country. Approval levels are assigned to the corresponding officials of the business unit (commercial, consumer, SMEs) to be exercised by that level of management. In addition, those limits are continually revised. Teams in charge of risk evaluation at the branch level interact on a regular basis with customers; however, for larger credit requests, the risk team from the head office and the Executive Risk Committee works directly with customers to assess credit risks and prepare risk requests. •Limit concentrations of exposure to customers or counterparties in geographic areas or industries (for accounts receivable or loans), and by issuer, credit rating and liquidity. •Develop and maintain the Bank’s credit risk classifications for the purpose of classifying risks according to the degree of exposure to financial loss that is exhibited by the respective financial instruments, with the aim of focusing risk management specifically on the associated risks. •Revise and evaluate credit risk. Management’s risk divisions are largely independent of the Bank’s commercial division and evaluate all credit risks in excess of the specified limits prior to loan approvals for customers or prior to the acquisition of specific investments. Credit renewal and reviews are subject to similar processes. For more detail on credit risk metrics please see: “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Provision for loan losses”, “Item 5. Operating and Financial Review and Prospects—B. Selected Statistical Information- Loan Portfolio”, “Item 5. Operating and Financial Review and Prospects—B. Selected Statistical Information- Credit Ratios”, “Note 8 – Financial Assets at Amortized Costs” and “Note 37-Risk Management-Credit Risk”. 2.Non-financial risks Following the Basel framework, the Bank defines operational risk as the risk of losses arising from defects or failures in its internal processes, people, systems or external events, thus covering risk categories such as fraud, technological, cyber, legal and conduct risk. Operational risk is inherent to all products, activities, processes and systems and is generated in all business and support areas. For this reason, all employees are responsible for managing and controlling the operational risks generated in their sphere of action. The Bank’s goal in terms of operational risk management and control is focused on identifying, evaluating and mitigating sources of risk, regardless of whether they have materialized or not. The analysis of operational risk exposure contributes to the establishment of risk management priorities. The following table summarizes our net losses from operational risks in 2025 compared to 2024. 156 Table of contents As of December 31, % Change 2025 2024 2025/2024 (Ch$ millions) Net losses from operational risks Fraud 34,929 7,633 357.6 % Labor related 3,459 4,969 (30.4) % Client / product related 91 559 (83.7 %) Damage to fixed assets 295 345 (14.5 %) Business continuity / Systems 274 178 53.9 % Processing 2,122 4,950 (57.1 %) Total 41,170 18,634 120.9 % In 2025, the 120.9% increase in operational-related losses was mainly due to higher fraud expenses. The adoption of digital banking and recent regulatory changes have led to a relevant increase in fraud expenses. In 2023 gross fraud related expenses amounted to Ch$ 7,202 million, while in 2024 this increased to Ch$ 33,786 million and Ch$ 41,496 million in 2025. The rapid increase in fraud cases in the first half of 2024 led to improvements in the existing Chilean fraud Law in May 2024 pursuant to Law No. 21,637, which addressed some of the imbalances previously caused by changes enacted in 2020. Among other adjustments, the amendment modified the procedures that users must follow to request the reimbursement of funds associated with claims for unauthorized transactions, requiring a sworn statement and the filing of a complaint with the competent authorities. In addition, the timeframes for such reimbursement were extended. The credit card issuer continues to be responsible for both transactions carried out after the customer reports the fraud as well as for unauthorized transactions. Furthermore, the Bank is also liable for other types of fraud, such as financial scams. With these more stringent requirements in place the Bank recognized lower recoveries from fraud claims in 2025 compared to 2024. In response to the increase in fraud, we have limited the exposure of our clients to credit card fraud through education, insurance coverage, marketing campaigns, daily transfer amount limits, chip technology, improved ATM software, and other technological improvements, Despite these initiatives and investments, the continuous evolution of fraud techniques that affect our clients and subsequently the Bank continues to be a material source of operational loss. Governance The risk management program contemplates that all relevant risk issues must be reported to the Board of Directors, the Integral Risk Committee and the Non-Financial Risk Committee. Risk identification, measurement and assessment model A series of quantitative and qualitative techniques and tools have been defined by the Bank to identify, measure and assess operational risk. The quantitative analysis of this risk assessment is carried out mainly with tools that record and quantify the level of potential losses associated with operational risk events. The qualitative analysis seeks to assess aspects of exposure and hedging (including the control environment). The most important operational risk tools used by Santander Chile are an internal events database, operational risk control self-assessment, analysis of operational risk scenarios, appetite of corporate and local indicators, and internal audit and regulatory recommendations, among others. Operational risk management To accomplish our operational risk objectives, we have established a risk model based on three lines of defense, with the objective of continuously improving and developing our management and control of operational risks. The defense lines consist of: (i) the business and support areas (first line of defense), responsible for managing the risks related to their processes; (ii) the non-financial risk area (second line of defense), in charge of supporting the first line of defense in relation to the fulfillment of its direct responsibilities and; (iii) the internal audit function (third line of defense) responsible for verifying, independently and periodically, the adequacy of the risk identification and management processes and procedures, in accordance with the guidelines established in the Internal Audit Policy and submitting the results of its recommendations for improvement to the Audit Committee. For further information, see “Item 16K. Cybersecurity.” 157 Table of contents Our methodology consists of the evaluation of the risks and controls of a business from a broad perspective and includes a plan to monitor the effectiveness of such controls and the identification of eventual weaknesses. The main objectives of the Bank and its subsidiaries in terms of operational risk management are the following: •Identify, evaluate, mitigate, inform, manage and monitor the operational risk in connection with activities, products, and processes carried out or commercialized by the Bank and its subsidiaries; •Build a strong culture of operational risk management and internal controls, with clearly defined and adequately segregated responsibilities between business and support functions, whether these are internally-developed or outsourced to third parties, and promote an advanced culture of operational risk management; •Generate effective internal reports in connection with issues related to operational risk management, with a clearly defined escalation protocol; and •Control the design and application of effective plans to deal with contingencies that ensure business continuity and losses control. Cyber-security and data security plans The Bank continuously monitors cyber-security risks and has implemented preventative measures to be prepared for any cyber-attack. Likewise, the internal cyber-security model based on best practices and international standards, is periodically evaluated for its maturity level. Through these evaluations, points of improvement have been identified and actions and remediation have been established and incorporated into our cybersecurity plans. For further information, see “Item 16K. Cybersecurity.” Business Continuity Management: Ensuring the realization of critical process during contingencies The Bank has a Business Continuity Management System, which covers the entire organization in order to ensure the execution of the activities that may cause significant negative impacts (operational, reputation, consumer services, legal and operational losses) to the organization. The Non-financial Risk Department, through the Operational Resilience Risk Department (BCM specialized area, as part of the second line of defense), leads the control and implementation of the model and policies defining the roles and responsibilities of each line of defense, where the first line of defense has a main role that involves the identification of their process, the business impact analysis of each risk according to the methodology, the preparation of business continuity plans and strategies to respond to each contingency scenario and ensure the realization of the critical processes, the testing and continuous updating of the information to secure the resources needed (at least annually). The Bank is constantly facing different types of contingencies (mainly natural disasters, pandemics, social movements, protests, among others), which has proven to be effective in order to maintain, social movements, protests, among others), which has proven to be effective in order to maintain and ensure the business continuity of the organization. We are constantly detecting new opportunities to improve the current mitigation actions and contingency plans allowing the critical departments to recover after the events that may occur in the future. Role of Santander Group’s Global Risk Division: Operational Risk In matters regarding operational risk, Santander Global Risk Department’s role is to define certain global policies, guidelines and procedures regarding operational risk.. The Risk Control Committee reviews relevant matters from the different Santander units that may impact operational risk. 3.Market Risks This section describes the market risks that we are exposed to, the tools and methodology used to control these risks, the portfolios over which these market risk methods were applied and quantitative disclosure that demonstrate the level of exposure to market risk that we are assuming. This section also discloses the derivative instruments that we use to hedge exposures and offer to our clients. Market risk is the risk of losses due to unexpected changes in interest rates, foreign exchange rates, inflation rates and other rates or prices. We are exposed to market risk mainly as a result of the following activities: •trading in financial instruments, which exposes us to interest rate and foreign exchange rate risk; 158 Table of contents •engaging in banking activities, which subjects us to interest rate risk, since a change in interest rates affected gross interest income, gross interest expense and customer behavior; •engaging in banking activities, which exposes us to inflation rate risk, since a change in expected inflation affects gross interest income, gross interest expense and customer behavior; •trading in the local equity market, which subjects us to potential losses caused by fluctuations of the stock market; and •investing in assets whose returns, or accounts are denominated in currencies other than the Chilean peso, which subjects us to foreign exchange risk between the Chilean peso and such other currencies. The main decisions that relate to market risk for the Bank and the limits regarding market risk are made in the Asset and Liability Committee. The measurement and oversight of market risks is performed by the Market Risk Department. Santander-Chile’s governance rules have established the Asset and Liability Committee to monitor and control market risks. Role of Santander Group’s Global Risk Division: Market Risk In matters regarding Market Risk, the role of Santander Spain’s Global Risk Department is to define certain global policies, guidelines and procedures regarding market risk. The information produced by our local Market Risk Department is standardized for the whole group in order to facilitate a consolidation of risks being taken on a global basis. They review daily the consumption of limits and provide valuable input on the evolution of markets, especially regarding the Eurozone. 4.Market Risk: Quantitative Disclosure Impact of Inflation Our assets and liabilities are denominated in Chilean pesos, Unidades de Fomento (UF) and foreign currencies. Inflation impacts our results of operations as some loan and deposit products are contracted in UF. The UF is revalued in monthly cycles. Each day in the period beginning on the tenth day of the current month through the ninth day of the succeeding month, the nominal peso value of the UF is indexed up (or down in the event of deflation) in order to reflect a proportionate amount of the change in the Chilean Consumer Price Index during the prior calendar month. One UF equaled Ch$39,727.96 as of December 31, 2025, Ch$38,416.69 as of December 31, 2024, and Ch$36,789.36 as of December 31, 2023. High levels of inflation in Chile could adversely affect the Chilean economy and could have an adverse effect on our business, financial condition, and results of operations. Negative inflation rates also negatively impact on our results. Inflation measured as the annual variation of the UF was 3.4% in 2025, 4.4% in 2024, and 4.8% in 2023. There can be no assurance that Chilean inflation will not change significantly from the current level. Due to the current structure of our assets and liabilities (i.e., a significant portion of our loans are indexed to the inflation rate, but there are significantly less features in deposits and other funding sources that would increase the size of our funding base), there can be no assurance that our business, financial condition and result of operations in the future will not be adversely affected by changing levels of inflation. In summary: •UF-denominated assets and liabilities. The effect of any changes in the nominal peso value of our UF-denominated interest earning assets and interest-bearing liabilities is reflected in our results of operations as an increase (or decrease, in the event of deflation) in interest income and expense, respectively. Our net interest income will be positively affected by an inflationary environment to the extent that our average UF-denominated interest earning assets exceed our average UF-denominated interest-bearing liabilities. Our net interest income will be positively affected by deflation in any period in which our average UF-denominated interest-bearing liabilities exceed our average UF-denominated interest earning assets. Our net interest income will be negatively affected in a deflationary environment if our average UF-denominated interest earning assets exceed our average UF-denominated interest-bearing liabilities. •Inflation and interest rate hedge. A key component of our asset and liability policy is the management of interest rate risk. The Bank’s assets generally have a longer maturity than our liabilities. As the Bank’s mortgage portfolio grows, the maturity gap tends to rise as these loans, which are contracted in UF, have a longer maturity than the average maturity of our funding base. As most of our long-term financial instruments and mortgage loans are contracted in UF and most of our deposits are in nominal pesos, the rise in mortgage lending increases the Bank’s 159 Table of contents exposure to inflation and to interest rate risk. This gap's size is limited by internal and regulatory guidelines to avoid excessive potential losses due to strong shifts in interest rates or inflation. To keep this duration gap below internal and regulatory limits, the Bank issues long term bonds denominated in UF or interest rate swaps. The financial cost of the bonds and the efficient part of these hedges is recorded as net interest income. The loss from the swaps taken to hedge mainly for inflation and interest rate risk, and included in net interest income, totaled a loss of Ch$236,523 in 2025, a loss of Ch$535,558 million in 2024, and a loss of Ch$1,147,193 million in 2023. The lower losses in 2025 were mainly due to lower short-term interest rates and inflation in 2025 compared to 2024. The average gap between our interest earnings assets and total liabilities linked to the inflation, including hedging, was Ch$7,403,454 million in 2025, Ch$7,518,560 million in 2024 and, Ch$6,875,280 million in 2023. Therefore, our sensitivity to a 100-basis point shift in UF inflation considering our average gap in 2025 would be approximately Ch$74 billion. The financial impact of the gap between our interest earning assets and liabilities denominated in UFs including hedges was as follows: As of December 31, % Change 2025 2024 2023 2025/2024 2024/2023 (in millions of Ch$) Impact of inflation on net interest income Results from UF GAP(1) 253,849 323,751 321,698 (21.6 %) 0.6 % Annual UF inflation 3.4 % 4.4 % 4.8 % (1)UF GAP is net interest income from asset and liabilities denominated in UFs and includes the results from hedging the size of this gap via interest rate swaps. The lower result from UF inflation in 2025 when compared to 2024 was mainly due to the lower UF inflation in 2025 compared to 2024. Interest Rates Interest rates earned and paid on our assets and liabilities reflect, to a certain degree, inflation, expectations regarding inflation, changes in short term interest rates set by the Central Bank and movements in long term real rates. See “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Interest Rates.” The Central Bank manages short term interest rates based on its objectives of balancing low inflation and economic growth. Because our liabilities are generally re-priced sooner than our assets, changes in the rate of inflation or short-term rates in the economy are reflected in the rates of interest paid by us on our liabilities before such changes are reflected in the rates of interest earned by us on our assets. Our Financial Management Division usually seeks to maintain liabilities with an average duration that is shorter than that of our assets, including through the use of derivatives, in order to hedge against sudden or rapid falls in the inflation rate, which in general triggers a reduction in short-term rates. Therefore, when short term interest rates fall, our net interest margin is usually positively impacted, but when short term rates increase, our interest margin is negatively affected. At the same time, our net interest margin tends to be adversely affected in the short term by a decrease in inflation rates since generally our UF-denominated assets exceed our UF-denominated liabilities. See “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Impact of Inflation—Peso-denominated assets and liabilities.” An increase in long term rates has a positive effect on our net interest margin, because our interest earning assets generally have longer terms than our interest-bearing liabilities. A flattening of the yield curve, i.e. long-term rates falling quicker than short-term rates, negatively affects our margins by lowering loan yields at a greater pace than deposits costs. In addition, because our peso-denominated liabilities have relatively short re-pricing periods, they are generally more responsive to changes in inflation or short-term rates than our UF-denominated liabilities. As a result, during periods when or expected inflation exceeds the previous period’s inflation, customers often switch funds from UF-denominated deposits to peso-denominated deposits, which generally bear higher interest rates, thereby adversely affecting our net interest margin. We also maintain a substantial amount of non-interest-bearing peso-denominated demand deposits. Because such deposits are non-interest bearing and are not indexed to inflation, the higher percentage of our funding that comes from this source positively impacts our net interest margin as interest rates or inflation rises and vice-versa. The ratio of the average 160 Table of contents of such demand deposits and average shareholder’s equity to average interest-earning assets was 31.3%, 30.7% and 29.0% for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the detail of the maturities of assets and liabilities is as follows: As of December 31, 2025 Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total (in millions of Ch$) Financial assets Cash and deposits in banks 1,975,644 — — — — — — 1,975,644 Cash items in process of collection 1,185,633 — — — — — — 1,185,633 Financial assets for trading at FVTPL Financial derivative contracts and hedge contracts(1) — 725,018 1,132,620 1,892,284 2,207,019 2,031,532 3,152,496 11,140,969 Debt financial instruments — — 41,834 — 254,684 227,280 190,830 714,628 Financial assets at FVOCI Debt financial instrument — 180,132 39,849 390,071 1,762,028 961,933 264,353 3,598,366 Other financial instruments 1,784 8,062 16,124 36,604 55,639 16,972 161,064 296,249 Financial assets at amortized cost(2) Rights under repurchase agreements — 428,146 — — — — — 428,146 Debt financial instruments — — — — 2,594,154 2,603,922 328,311 5,526,387 Interbank loans 68,106 36 36 — — — — 68,178 Loans and account receivable from customers 1,447,642 2,918,149 2,969,942 5,546,646 8,715,192 4,661,794 14,605,337 40,864,702 Guarantee deposits (margin accounts) 2,075,671 — — — — — — 2,075,671 Total financial assets 6,754,480 4,259,543 4,200,405 7,865,605 15,588,716 10,503,433 18,702,391 67,874,573 Financial liabilities Cash items in process of being cleared 1,068,216 — — — — — — 1,068,216 Financial liabilities for trading at FVTPL Financial derivative contracts and hedge contracts(1) — 789,194 1,274,609 2,113,806 2,414,508 1,745,432 3,162,475 11,500,024 Financial liabilities at amortized cost Deposits and other demand liabilities 14,075,590 — — — — — — 14,075,590 Time deposits and other time liabilities — 7,731,868 3,692,751 4,601,006 435,105 322 32,731 16,493,783 Obligations under repurchase agreements — 2,180,874 574,369 — — — — 2,755,243 Interbank borrowings 28,266 289,677 275,757 1,949,788 659,092 223,890 7,767 3,434,237 Issued debt instruments(3) — 45,980 676,736 1,642,349 1,995,136 1,205,230 2,133,669 7,699,100 Other financial liabilities — 224,321 — — — — — 224,321 Lease liabilities — — — 6,629 14,751 11,276 7,993 40,649 Regulatory capital instrument — — — 202,169 124,099 181,378 1,440,847 1,948,493 Guarantees received (margin accounts) 1,541,061 — — — — — — 1,541,061 Total financial liabilities 16,713,133 11,261,914 6,494,222 10,515,747 5,642,691 3,367,528 6,785,482 60,780,717 (1)Includes derivative contracts for trading purposes and hedge derivatives contracts. (2)Debt financial instruments, Interbank loans and loans and accounts receivable from customer are presented on a gross basis, the related allowance are Ch$1,145 million, Ch$2 million and Ch$1,222,456 million, respectively. (3)Includes Subordinated bonds for Ch$1,948,493 million which is presented as Regulatory capital financial instruments. 161 Table of contents The following table sets forth our average daily balance of liabilities for the years ended December 31, 2025, 2024 and 2023, in each case together with the related average nominal interest rates paid thereon. 2025 2024 2023 Average Balance % of Total Average Liabilities Average Nominal Rate Average Balance % of Total Average Liabilities Average Nominal Rate Average Balance % of Total Average Liabilities Average Nominal Rate Interest-bearing liabilities Savings accounts 246,969 0.4 % 3.2 % 204,486 0.3 % 4.5 % 190,469 0.3 % 3.6 % Time deposits 16,819,761 24.7 % 4.6 % 18,333,279 26.6 % 7.4 % 16,392,793 23.6 % 7.4 % Central Bank borrowings — — % — % 2,227,144 3.2 % 5.1 % 5,773,345 8.3 % 12.2 % Repurchase agreements 2,189,070 3.2 % 4.9 % 567,006 0.8 % 9.1 % 779,214 1.1 % 7.2 % Mortgage finance bonds 71 0.0 % 5.6 % 455 0.0 % 11.4 % 2,063 0.0 % 9.3 % Commercial paper 837,704 1.2 % 4.9 % 639,541 0.9 % 6.0 % 613,212 0.9 % 5.8 % Other interest bearing liabilities 17,155,876 25.2 % 5.1 % 14,707,545 21.3 % 8.0 % 14,920,208 21.5 % 8.7 % Subtotal interest-bearing liabilities 37,249,451 54.6 % 4.9 % 36,679,456 53.2 % 6.3 % 38,671,304 55.6 % 8.6 % Non-liabilities Non-interest bearing deposits 10,837,345 15.9 % 11,317,733 16.4 % 11,099,866 16.0 % Derivatives 11,497,964 16.9 % 11,710,435 17.0 % 10,937,411 15.7 % Other non-interest bearing liabilities 3,011,037 4.4 % 4,162,306 6.0 % 4,108,850 5.9 % Shareholders’ equity 5,584,350 8.2 % 5,028,887 7.3 % 4,720,294 6.8 % Subtotal non-interest bearing liabilities and equity 30,930,696 45.4 % 32,219,361 46.8 % 30,866,421 44.4 % Total liabilities 68,180,147 100.0 % 68,898,817 100.0 % 69,537,725 100.0 % Foreign exchange fluctuations The Chilean government’s economic policies and any future changes in the value of the Chilean peso against the U.S. dollar could adversely affect our financial condition and results of operations. The Chilean peso has been subject to significant devaluation in the past and may be subject to significant fluctuations in the future. The exchange rate appreciated 9.4% in 2025, depreciated 13.7% in 2024 and depreciated 2.9% in 2023. A significant portion of our assets and liabilities are denominated in foreign currencies, principally the U.S. dollar, and we historically have maintained, and may continue to maintain, material gaps between the balances of such assets and liabilities. Because such assets and liabilities, as well as interest earned or paid on such assets and liabilities, and gains and losses realized upon the sale of such assets, are translated to Chilean pesos in preparing our financial statements, our reported income is affected by changes in the value of the Chilean peso relative to foreign currencies (principally the U.S. dollar). In general, the Bank is not permitted, due to guidelines set by the ALCO, to open a meaningful gap in foreign currency. Any significant difference between the spot asset position and the spot liability position in foreign currency is usually hedged using forwards and cross-currency swaps. Any remaining foreign currency risk is included as part of the trading portfolio We set an absolute limit on the size of Santander-Chile’s consolidated net foreign currency trading position, which is equivalent to the maximum differential allowed between assets and liabilities in foreign currencies, including hedging of this gap. The limit on the size of the net foreign currency position is determined by the Market Committee and is calculated and monitored by the Market Risk Department. As of December 31, 2025, this was equal to U.S.$350 million. This limit in various other currencies is as follows: 162 Table of contents Currency Limit (in millions of U.S.$) U.S. dollars 350 Euros 110 Yen 27 British pound 20 Mexican peso 30 Brazilian real 30 Colombian peso 30 Peruvian sol 20 Other European currencies 30 Other Latin American currencies 30 Other currencies 47.5 Total Limit 350 Foreign currency risk included in the trading portfolio is also measured and controlled using VaR. The average VAR of our foreign currency position was U.S.$1.04 million in 2025. The translation gains or loss over assets and liabilities (excluding derivatives held for trading) is included as foreign exchange transactions in the income statement. The translation and mark-to-market of foreign currency derivatives held for trading is recognized as a gain or loss in the net results from mark-to-market and trading. Liquidity risk management The Financial Management Division receives information from all the business units on the liquidity profile of their financial assets and liabilities, as well as breakdowns of other projected cash flows stemming from future businesses. On the basis of that information, the Financial Management Division maintains a portfolio of liquid short–term assets, comprised mainly of liquid investments, loans and advances to other banks, to make sure the Bank has sufficient liquidity. The business units’ liquidity needs are met through short–term transfers from the Financial Management Division to cover any short–term fluctuations and long–term financing to address all the structural liquidity requirements. The Bank monitors its liquidity position every day, determining the future flows of its outlays and revenues. In addition, stress tests are performed at the close of each month, for which a variety of scenarios encompassing both normal market conditions and conditions of market fluctuation are used. The liquidity policy and procedures are subject to review and approval by the Bank’s Board. Periodic reports are generated by the Market Risk Department, providing a breakdown of the liquidity position of the Bank and its subsidiaries, including any exceptions and the corrective measures adopted, which are regularly submitted to the ALCO for review. The Bank relies on demand deposits from Retail, Middle-Market and Corporate clients, obligations to banks, debt instruments, and time deposits as its main sources of funding. Our most important source of funding is our deposits. Average time deposits plus average non-interest bearing demand deposits represented 40.6% of our average total liabilities and shareholders’ equity in 2025. As of December 31, 2025, the Bank’s top 20 time deposits represented 20.0% of total time deposits, or 4.8% of total liabilities and equity. Our current funding strategy is to continue to utilize all sources of funding in accordance with their costs, their availability and our general asset and liability management strategy. Special emphasis is being placed on lengthening the maturities of funding with institutional clients, diversifying our bond holder base and broadening our core deposit funding. We believe that broadening our deposit base by increasing the number of account holders has created a more stable funding source. Although most obligations to banks and debt instruments mature in over a year, customer (retail) and institutional deposits tend to have shorter maturities and a large proportion of them are payable within 90 days. The short–term nature of these deposits increases the Bank’s liquidity risk, and hence, the Bank actively manages this risk by continual supervision of the market trends and price management. We cannot assure that in the event of a sudden or unexpected shortage of funds in the banking system, we will be able to maintain levels of funding without incurring higher funding 163 Table of contents costs, a reduction in the term of funding instruments or the liquidation of certain assets. If this were to happen, we could be materially adversely affected. Liquidity risk management seeks to ensure that, even under adverse conditions, we have access to the funds necessary to cover client needs, maturing liabilities and capital requirements. Liquidity risk arises in the general funding for our financing, trading and investment activities. It includes the risk of unexpected increases in the cost of funding the portfolio of assets at appropriate maturities and rates, the risk of being unable to liquidate a position in a timely manner at a reasonable price and the risk that we will be required to repay liabilities earlier than anticipated. The ALCO now uses as its liquidity portfolio those defined by the FMC and the Central Bank, which are in line with those established in BIS III. As of December 31, 2025, and 2024, the breakdown of the Bank’s liquid assets by levels was the following: December 31, 2025 December 31, 2024 (Ch$ million) Balance as of: Cash and cash equivalent 1,904,994 2,416,812 Level 1 liquid assets(1) 6,227,856 7,241,318 Level 2 liquid assets(2) 3,163 4,517 Total liquid assets 8,136,014 9,662,647 (1)Includes available balances held in the Central Bank of Chile, financial instruments issued by the Chilean Treasury or Central Bank and other financial instruments issued or guaranteed by States, multilateral development banks or foreign central banks that have a first-class rating, in accordance with international rating agencies. Collateral under the FCIC funding program with the Central Bank of Chile and technical reserves in the Central Bank are not included. (2)Includes instruments issued by governments, central banks and development banks of foreign countries with a risk rating of A- to AA+ and mortgage bonds issued by Chilean banks that are acceptable at the Central Bank’s repo window. December 31, 2025 December 31, 2024 (Ch$ million) (Ch$ million) Average balance as of: Cash and cash equivalent 1,828,528 1,732,701 Level 1 liquid assets(1) 6,476,798 6,236,963 Level 2 liquid assets(2) 3,660 5,217 Total liquid assets 8,308,986 7,974,881 (1)Includes available balances held in the Central Bank of Chile, financial instruments issued by the Chilean Treasury or Central Bank and other financial instruments issued or guaranteed by States, multilateral development banks or foreign central banks that have a first class rating, in accordance with international rating agencies. Collateral under the FCIC funding program with the Central Bank of Chile and technical reserve in the Central Bank are not included. (2)Includes instruments issued by governments, central banks and development banks of foreign countries with a risk rating of A- to AA+ in accordance with international rating agencies and mortgage bonds issued by Chilean banks that are acceptable at the Central Bank’s repo window. The Central Bank and our ALCO also requires us to comply with the following liquidity limits: •Liquidity coverage ratio (LCR), which measures the percentage of Liquid Assets over Net Cash Outflows. This liquidity ratio per Chilean regulations cannot be lower than 100%. As of December 31, 2025, this indicator for Banco Santander Chile was 187.7% •Net Stable Funding Ratio (NSFR) which measures a bank’s stable funding sources over required stable needs. Beginning in 2022, Chilean banks must have a minimum NSFR ratio of 60% with a gradual phase-in which will 164 Table of contents reach 100% by 2026. As of December 31, 2025, this indicator for Banco Santander Chile was 115.1% in compliance with the local regulatory limit. •The sum of the liabilities in foreign currency with a maturity of less than 30 days may not exceed the sum of the assets in foreign currency with a maturity of less than 30 days by more than an amount greater than our capital. At December 31, 2025 the liabilities with a maturity of less than 30 days in foreign currency were greater than our assets in foreign currency with a maturity of less than 30 days at a level equivalent to 9% of our capital, thus resulting in our compliance. Market risk management The Bank’s internal management of market risk is based chiefly on the procedures and standards of Santander Spain, which are in turn based on analysis of management in three principal components: •trading portfolio; •local financial management portfolio; and •foreign financial management portfolio. The trading portfolio is comprised chiefly of investments valued at fair market value and free of any restriction on their immediate sale, which are often bought and sold by the Bank with the intention of selling them in the short term to benefit from short–term price fluctuations. The trading portfolio also includes the Bank’s exposure to foreign currency. The financial management portfolios include all the financial investments not considered to be part of trading portfolio. Market risk – management of trading portfolio The Bank applies VaR methodologies to measure the market risk of its trading portfolio. The Bank has a consolidated commercial position comprised of fixed–income investments and foreign currency trading. This portfolio is comprised mostly of Central Bank of Chile bonds, mortgage bonds, locally issued, low–risk corporate bonds and foreign currencies, mainly U.S. dollars. At the end of each year, the trading portfolio included no stock portfolio investments. For the Bank, the VaR estimate is made under the historical simulation methodology, which consists of observing the behavior of the profits and losses that would have occurred in the current portfolio if the market conditions for a given historical period had been in force, in order to infer the maximum loss on the basis of that information, with a given degree of confidence. The methodology has the advantage of precisely reflecting the historical distribution of the market variables and not requiring any assumptions regarding the distribution of specific probabilities. All the VaR measures are intended to determine the distribution function for a change in the value of a given portfolio, and once that distribution is known, to calculate the percentile related to the necessary degree of confidence, which will be equal to the value at risk by virtue of those parameters. As calculated by the Bank, the VaR is an estimate of the maximum expected loss of market value for a given portfolio over a 1–day horizon, with a 99.00% confidence level. It is the maximum 1–day loss that the Bank could expect to experience in a given portfolio, with a 99.00% confidence level. In other words, it is the loss that the Bank would expect to experience only 1.0% of the time. The VaR provides a single estimate of market risk which is not comparable from one market risk to another. Returns are calculated through the use of a 2–year time window or at least 520 data points obtained since the last reference date for calculation of the VaR going backward in time. We do not calculate three separate VaRs. We calculate a single VaR for the entire trading portfolio, which in addition is segregated by risk type. The VaR software performs a historical simulation and calculates a Profit and Loss Statement (P&L) for 520 data points (days) for each risk factor (fixed income, foreign currency and variable income.) The P&L of each risk factor is added and a consolidated VaR is calculated with 520 points or days of data. At the same time a VaR is calculated for each risk factor based on the individual P&L calculated for each individual risk factor. Furthermore, a weighted VaR is calculated in the manner described above, but which gives a greater weighting to the 30 most recent data points. The larger of the two VaRs is the one that is reported. In 2025, 2024 and 2023 we used the same VaR model and there has been no change in methodology or assumptions for subsequent periods. The Bank uses the VaR estimates to provide a warning when the statistically estimated incurred losses in its trading portfolio would exceed prudent levels, and hence, there are certain predetermined limits. 165 Table of contents Limitations of the VaR model When applying a calculation methodology, no assumptions are made regarding the probability distribution of the changes in the risk factors; the historically observed changes are used for the risk factors on which each position in the portfolio will be valued. It is necessary to define a valuation function fj(xi) for each instrument j, preferably the same one used to calculate the market value and income of the daily position. This valuation function will be applied in each scenario to generate simulated prices for all the instruments in each scenario. In addition, the VaR methodology is subject to the following limitations: •Changes in market rates and prices may not be independent and identically distributed random variables, and may not have a normal distribution; in particular, the assumption of normal distribution may underestimate the probability of extreme market movements; •The historical data used by the Bank may not provide the best estimate of the joint distribution of changes in the risk factors in the future, and any modification of the data may be inadequate; In particular, the use of historical data may fail to capture the risk of potential extreme and adverse market fluctuations, regardless of the time period used; •A 1–day time horizon may not fully capture the market risk positions which cannot be liquidated or covered in a single day; it would not be possible to liquidate or cover all the positions in a single day; •The VaR is calculated at the close of business, but trading positions may change substantially in the course of the trading day; •The use of a 99% degree of confidence does not take account of, or make any statement about, the losses that could occur outside of that degree of confidence; and •A model such as the VaR does not capture all the complex effects of the risk factors over the value of the positions or portfolios, and accordingly, it could underestimate potential losses. We perform back-testing daily and generally find that trading losses exceed our VaR estimate approximately one out of every 100 trading days. At the same time, we set a limit to the maximum VaR that we are willing to accept over our trading portfolio. We perform back-testing daily and generally find that trading losses exceed our VaR estimate approximately one out of every 100 trading days. At the same time, we set a limit to the maximum VaR that we are willing to accept over our trading portfolio. Also, a maximum VaR limit was established that can be applied over the trading portfolio. The average VaR as of December 31, 2025 was U.S.$1.67 million, which is below the total limit. The high, low, and average levels for each component and each year below were as follows: Consolidated 2025 2024 2023 (in millions of U.S.$) VaR High 2.87 4.06 6.23 Low 1.05 1.47 2.73 Average 1.67 2.40 4.41 Fixed-income investments High 2.83 3.33 5.78 Low 0.96 1.41 2.75 Average 1.36 2.23 4.20 Variable-income investments High — — — 166 Table of contents Low — — — Average — — — Foreign currency investments High 2.62 3.93 4.82 Low 0.16 0.18 0.17 Average 1.04 1.55 1.14 Market risk – local and foreign financial management The Bank’s financial management portfolio includes most of the Bank’s non-trading assets and liabilities, including the credit/loan portfolio. For these portfolios, investment and financing decisions are strongly influenced by the Bank’s commercial strategies. The Bank uses a sensitivity analysis to measure the market risk of local and foreign currencies (not included in the trading portfolio). The Bank performs a simulation of scenarios, which will be calculated as the difference between the present value of the flows in the chosen scenario and their value in the base scenario. All the positions in local currency, including the one indexed to inflation (UF), and also the positions in foreign currency are added together based on a historical correlation model existing between the currencies. The Bank has also established limits regarding the maximum loss that these types of movements in interest rates may have on capital and net financial income budgeted for the year. Limitations of the sensitivity models The most important assumption is using a parallel shift of the nominal yield curve of 100bp in 2025, 2024 and 2023 (57 basis points for real rates (UF)). Santander Spain Global Risk Department has also established comparable limits by country, to be able to compare, monitor and consolidate market risk by country in a realistic and orderly way. In addition, the sensitivity simulation methodology should be interpreted taking into consideration the following limitations: •The simulation of scenarios assumes that the volumes remain consistent in the Bank’s Consolidated Statements of Financial Position and are always renewed at maturity, also including certain credit risk and prepayment considerations that may affect the maturity of certain positions. •This model assumes an identical change along the entire length of the yield curve and does not take into account the different movements for different maturities. •The model does not take into account the sensitivity of volumes which results from interest rate changes. •The limits to losses of budgeted financial income are calculated based on the financial income foreseen for the year, which may not be actually earned, meaning that the real percentage of financial income at risk may be higher than the expected one. Market Risk – Financial management portfolio – December 31, 2025, 2024 and 2023: 167 Table of contents 2025 2024 2023 Effect on net interest income Effect on equity Effect on net interest income Effect on equity Effect on net interest income Effect on equity Financial management portfolio – local currency (in millions of Ch$) Loss limit 175,196 370,271 138,957 373,566 124,904 353,718 High 9,968 186,784 49,174 170,622 79,657 173,389 Low 11,605 96,459 482 87,335 41,151 88,382 Average 703 131,800 20,482 136,617 62,740 133,464 Financial management portfolio – foreign currency (in thousands of U.S.$) Loss limit 40,531 180,138 178,937 198,819 157,400 174,899 High 9,586 68,145 13,104 61,137 17,775 91,935 Low — — 442 47,615 227 53,436 Average 1,099 20,534 5,169 53,651 9,718 70,397 Financial management portfolio – consolidated (in millions of Ch$) Loss limit 175,196 370,271 138,957 373,566 124,904 353,718 High 27,182 348,027 46,970 357,867 75,816 283,550 Low 4,600 237,954 — 279,293 34,663 246,664 Average 13,044 273,792 19,678 311,333 64,477 268,776 Market risk –Regulatory method The following table illustrates our market risk exposure according to the Chilean regulatory method, as of December 31, 2025. According to FMC regulation, the short-term exposure to interest rate risk and inflation risk as a percentage of net interest and inflation income and net fee income sensitive to interest rates, accumulated in the last 12 months, should not exceed a limit established by the Bank’s Board. The Board set a limit equal to 55% of net income from interest and inflation and net income from fees sensitive to interest rates. Furthermore, long-term exposure to interest rates for the banking book as a percentage of regulatory capital should not exceed a limit established by the Bank’s Board. The Board set this limit at 35% of the Bank’s regulatory capital. Nonetheless, the FMC can lower limits at their discretion as part of its supervisory authority over the risk management of the Bank. As of Dec 31, 2025 Ch$mn Market risk – short-term financial management portfolio Short Term Exposure to Interest Rate Risk 101,913 Exposure to Inflation Risk 153,766 Short-term exposure of financial management portfolio 255,679 Limit = 55% net (net income from interest and inflation+ interest rates sensitive commissions) 1,008,348 Available margin 752,669 Market risk – long-term financial management portfolio Long Term Exposure to Interest Rate Risk 728,870 168 Table of contents Limit = 35% Regulatory capital 2,466,563 Available margin 1,737,693 Trading book Exposure to interest rate risk 565,138 Exposure to currency risk 4,484 Interest rate option risk - Currency option risk 1,896 Total exposure of trading portfolio 571,518 Banking book Short Term Exposure to Interest Rate Risk 101,913 Exposure to Inflation Risk 153,766 Long Term Exposure to Interest Rate Risk 728,870 Total exposure of banking book 984,549 Derivative activities At December 31, 2025, 2024 and 2023, derivatives are valued at market price on the balance sheet and the net unrealized gain (loss) on derivatives is classified as a separate line item on the income statement. Notional amounts are not recorded on the balance sheet. Banks must mark-to-market derivatives. A derivative financial instrument held for trading purposes must be marked to market and the unrealized gain or loss recognized in the income statement. The FMC recognizes three kinds of hedge accounting: (i) cash flow hedges, (ii) fair value hedges and (iii) hedging of foreign investments. •When a cash flow hedge exists, the fair value movements on the part of the hedging instrument that is effective are recognized in equity. Any ineffective portion of the fair value movement on the hedging instrument is recognized in the income statement. •When a fair value hedge exists, the fair value movements on the hedging instrument and the corresponding fair value movements on the hedged item are recognized in the income statement. Hedged items in the balance sheet are presented at their market value. •When a hedge of foreign investment exposure exists (i.e. investment in a foreign branch), the fair value movements on the part of the hedging instrument that is effective are recognized in equity. Any ineffective portion of the fair value movement on the hedging instrument is recognized in the income statement. In order to reduce the credit risk in its derivative contracts, the Bank has entered into Credit Support Annex (CSA) agreements with the majority of its counterparties, which include obligations to post daily cash collateral. The majority of the agreements include an obligation to post collateral with a threshold amount of zero. In the table below we identify those contracts with CSA and breakdown the fair value of our derivative portfolio by collateral threshold requirements for 2025 and 2024. Fair value of derivative contracts 2025 2024 Assets Liabilities Assets Liabilities Derivative contracts with zero threshold collateral amount in CSA 1,985,631 1,433,944 1,840,673 1,594,111 Derivative contracts without CSA agreements 9,155,338 10,066,080 11,312,725 11,459,307 Total 11,140,969 11,500,024 13,153,398 13,053,418 We classify some of our derivative financial instruments as being financial assets held for trading, due to the guidelines from the FMC. We enter into derivative contracts with some clients who seek hedging instruments. However, substantially all of our derivatives are not actually used for speculative purposes or trading. 169 Table of contents As of December 31, 2025, the Bank held the following portfolios of financial assets and liabilities derivative contracts for trading at fair value through profit and loss: As of December 31, 2025 Notional amount Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Fair value Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Assets Currency forward — 25,231,549 17,959,495 27,913,502 6,971,335 2,517,760 1,663,646 82,257,287 2,055,569 Interest rate swaps — 13,947,595 29,006,667 30,995,890 20,723,603 16,894,592 31,276,092 142,844,439 1,332,806 Cross currency swaps — 1,434,261 5,123,374 13,944,592 20,763,957 15,684,701 24,426,683 81,377,568 7,489,381 Call currency options — 22,061 23,401 56,923 — — — 102,385 1,039 Put currency options — 39,178 3,415 5,239 — — — 47,832 982 Total — 40,674,644 52,116,352 72,916,146 48,458,895 35,097,053 57,366,421 306,629,511 10,879,777 As of December 31, 2025 Notional amount On Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Fair value Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Liabilities Currency forward — 23,750,958 20,824,030 27,092,792 5,136,179 1,136,565 700,706 78,641,230 2,173,004 Interest rate swaps — 16,930,774 20,745,410 35,069,132 21,274,251 15,793,974 29,527,648 139,341,189 1,134,840 Cross currency swaps — 1,172,436 4,049,436 10,566,265 19,536,479 12,329,038 22,921,210 70,574,864 7,276,583 Call currency options — 27,767 47,768 25,958 — — — 101,493 491 Put currency options — 56,787 73,951 73,075 — — — 203,813 2,390 Total — 41,938,722 45,740,595 72,827,222 45,946,909 29,259,577 53,149,564 288,862,589 10,587,308 As of December 31, 2024, the Bank holds the following the Bank holds the following portfolios of financial assets and liabilities derivative contracts for trading at fair value through profit and loss: As of December 31, 2024 Notional amount Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Fair value Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Assets Currency forward — 14,227,181 9,262,636 13,988,163 5,818,091 576,456 993,915 44,866,442 1,038,292 Interest rate swaps — 15,353,818 15,394,905 16,392,696 21,541,572 9,219,884 17,265,959 95,168,834 1,907,001 Cross currency swaps — 1,826,508 3,315,310 11,052,105 27,159,964 13,026,424 23,665,080 80,045,391 9,356,353 Call currency options — 42,802 198,509 117,175 8,921 — — 367,407 6,618 Put currency options — 71,468 253,669 37,950 — — — 363,087 1,506 Total — 31,521,777 28,425,029 41,588,089 54,528,548 22,822,764 41,924,954 220,811,161 12,309,770 As of December 31, 2024 Notional amount On Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Fair value Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Liabilities Currency forward — 11,564,755 9,439,120 14,191,034 10,403,238 1,680,685 1,598,835 48,877,667 1,151,921 Interest rate swaps — 16,536,773 12,505,389 16,690,413 18,464,156 9,887,330 16,615,159 90,699,220 1,565,539 Cross currency swaps — 1,325,472 2,195,962 8,993,722 19,955,223 11,501,296 19,704,815 63,676,490 9,430,069 Call currency options — 81,510 143,946 58,826 — — — 284,282 5,530 170 Table of contents Put currency options — 248,733 106,519 138,505 8,921 — — 502,678 1,965 Total — 29,757,243 24,390,936 40,072,500 48,831,538 23,069,311 37,918,809 204,040,337 12,155,024 We also use derivatives to hedge our exposure to foreign exchange, interest rate and inflation risks. The Bank uses derivatives, mainly Ch$/UF swaps, in order to cover its exposure to inflation due to a higher amount of assets linked to inflation as compared to liabilities. Such derivatives are accounted for as cash flow hedges. Our Financial Management Division usually seeks to maintain liabilities with an average duration that is shorter than that of our assets, including through the use of derivatives, in order to hedge against sudden or rapid falls in the inflation rate, which in general triggers a reduction in short-term rates. To maintain this position, the Bank enters into interest rate swaps that are accounted for as fair value hedges. As of December 31, 2025 and 2024 the Bank holds the following portfolio of derivative instruments for hedging purposes: As of December 31, 2025 Notional amount Fair value Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Assets Liabilities Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Fair value hedge derivatives Interest rate swaps — — — 175,000 2,075,449 752,638 180,138 3,183,225 580 103,009 Cross currency swaps — 208,960 836,741 3,432,758 2,185,078 1,142,547 2,069,995 9,876,079 202,632 421,620 Subtotal — 208,960 836,741 3,607,758 4,260,527 1,895,185 2,250,133 13,059,304 203,212 524,629 Currency forwards — 272,306 311,863 1,076,376 — — — 1,660,545 5,843 20,706 Cross currency swaps — 589,136 1,673,048 3,546,146 3,814,876 2,844,561 553,938 13,021,705 52,137 367,381 Subtotal — 861,442 1,984,911 4,622,522 3,814,876 2,844,561 553,938 14,682,250 57,980 388,087 Total — 1,070,402 2,821,652 8,230,280 8,075,403 4,739,746 2,804,071 27,741,554 261,192 912,716 As of December 31, 2024 Notional amount Fair value Demand Up to 1 month Between 1 and 3 months Between 3 and 12 months Between 1 and 3 years Between 3 and 5 years More than 5 years Total Assets Liabilities Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Ch$mn Fair value hedge derivatives Interest rate swaps — — — 2,047,050 1,153,300 543,000 397,640 4,140,990 40,062 78,329 Cross currency swaps — 841,009 224,877 2,093,135 3,127,813 1,177,983 1,436,626 8,901,443 462,924 243,723 Subtotal — 841,009 224,877 4,140,185 4,281,113 1,720,983 1,834,266 13,042,433 502,986 322,052 Cash flow hedge derivatives Currency forwards — 149,115 160,050 1,861,085 — — — 2,170,250 65,196 — Cross currency swaps — 889,661 1,989,477 3,491,191 7,437,766 528,886 1,153,235 15,490,216 275,446 576,342 Subtotal — 1,038,776 2,149,527 5,352,276 7,437,766 528,886 1,153,235 17,660,466 340,642 576,342 Total — 1,879,785 2,374,404 9,492,461 11,718,879 2,249,869 2,987,501 30,702,899 843,628 898,394