| The subsidiary LQ Inversiones Financiera
(LQIF) has been the holding company
for Quiñenco’s financial sector investments since
the year 2000. Through its shareholdings in Banco de Chile and
in SM Chile S.A., LQIF currently has 52.2% of the voting rights
and 29.2% of the economic rights of Banco de Chile, one of the
most important financial institutions in the domestic market.
The financial sector, in turn, is Quiñenco’s
most relevant business area. Its investments in the sector
represent 63% of total corporate level assets and 69% of total
investments. In 2003, in its full year of operations following
its 2002 merger, Banco de Chile contributed Ch$38,047 million
to Quiñenco’s net profit, the most significant
result of any of the group’s operating companies.
Quiñenco has played a role in the Chilean
financial system since the 1980s, and is among the most experienced
conglomerates in this area with a long and successful track
record, which includes the merger of Banco Santiago with Banco
O’Higgins in 1997, the subsequent sale of this merged
entity to Banco Santander Central Hispanoamericano (BSCH)
in 1999, the acquisition of controlling stakes in Banco Edwards
and Banco de Chile in 1999 and 2000, respectively, and the
subsequent merger of these two institutions.
LQIF reported net profits in 2003 of Ch$13,463
million. These can be attributed mainly to LQIF’s proportional
share in the net income of related companies, primarily Banco
de Chile, which reached Ch$38,041 million, partially offset
by goodwill amortization expense associated with the 2001
acquisition of Banco de Chile and financial expenses incurred
during the 2003 period. |
