PA - Banco Security

DEAR SHAREHOLDERS
I have the pleasure to present to you the Annual Report of Grupo Security for the year 2010.
The year of Chile’s bicentenary was dramatic, intense and productive, marked by a series of events that Chileans will
never forget. The earthquake and tsunami of February 27 caused havoc in the national community whose effects we
will continue to feel during the following year, despite the great reconstruction effort being made. In addition, there
was the global impact caused by the accident and later rescue of the 33 miners in Copiapó, which showed Chile as
an organized and efficient nation with a strong sense of leadership in the eyes of the world.
Throughout this frenzy of events, and despite the constant announcements of crisis in Europe, the Chilean economy
enjoyed a period of growth and financial strength not seen for many years, thus following the rhythm of global
activity which expanded by 4.7% in 2010.
The earnings of Grupo Security in 2010 amounted to Ch$ 40,852 million, which represents a 36% increase over the
previous year and best result since the creation of the Group. Profitability was 15.7% of capital and reserves, 11.6%
more than in 2009, while the debt ratio moved from 35.2% in 2009 to 30.5% at the end of 2010.
Outstanding during the year was the performance of Banco Security and its subsidiaries, Valores Security Corredores
de Bolsa and Administradora General de Fondos Security, which contributed earnings of Ch$ 33,706 million,
comparing favorably with Ch$ 23,039 million reported for 2009. The return on equity of Banco Security was 16.3%,
with a Basel ratio of 12.66%, while the risk ratio, measured as loss allowances to total loans, was 1.91%.
Valores Security Corredores de Bolsa reported earnings of Ch$ 1,501 million. The effort to reorient the business on
customers, rather than property trading, enabled the company to achieve a market share of 6.9% in stock market
trading volumes and move up from sixth to fourth place in the ranking of stockbrokers in 2010, considering the
Santiago Stock Exchange and the Chilean Electronic Exchange.
For its part, Administradora General de Fondos Security (AGF) closed with an excellent year, with a 44% increase
in revenues which enabled it to improve its earnings from Ch$ 2,616 million in 2009 to Ch$ 3,762 million in 2010.
We are proud of the awards received by AGF, in particular the first place in the Salmón prizes in the following
categories: emerging equity markets funds, with Fondo Mutuo Security Emerging market; 11 National equity funds,
with Fondo Mutuo Security Acciones; and emerging equities guaranteed funds, with Fondo Mutuo Security Chile
105 Garantizado.