This includes savings plan expenses and greater provisions as a result of the pandemic.

February 26, 2021 at 5:30 PM EST

Grupo Security posted profit of CH $65,146 million for the year 2020, based on results filed today with the Financial Market Commission (CMF). These results were generated mainly during the second half of the year, with CH $17,328 million earned in the first half and CH$47,819 in the second, reflecting the pace at which Group companies adapted to the contingency and expenses for structural adjustments.

Regarding projections for 2021, Security expects to see an improvement in local economic conditions, which should reactivate loan growth at Banco Security. These improvements, coupled with a gradual recovery in annuity sales and improved investment income from Vida Security, should allow for at least 10% growth in the Group's earnings, in line with the company’s historical figures,” commented CEO Renato Peñafiel.

According to Peñafiel, “the 2020 results were satisfactory given the confluence of events. In particular, all Grupo Security companies implemented a savings plan and structural adjustments to improve their efficiency ratios. This plan involved cutting total expenses by CH $7,765 million in 2020 and included CH $14,491 million in termination benefits,” he explained. In addition, given the context of higher risk, additional provisions were recorded on the bank and factoring subsidiary’s loan portfolios, and market value adjustments were made to Vida Security and Banco Security’s financial investment portfolios.

In terms of business, the Group's CEO remarked that “amidst the challenging circumstances in 2020, Grupo Security reported consolidated income of CH $1,090,053 million, a slight 5.7% drop from the prior year. Profit from related companies declined 12.1% during the year, explained by the effects of termination benefits, increased provisions and adjustments to investment portfolios,” concluded Peñafiel.