Core Viewpoint - Banco Santander Chile and LATAM Airlines Group have renewed their strategic alliance for another five years, continuing a partnership that has lasted over three decades and has significantly impacted the Chilean loyalty program market [1][3]. Group 1: Alliance Overview - The alliance has consistently received high customer appreciation, with an average of around 2 million airline tickets redeemed each year through miles accumulated via the bank's products, equivalent to operating 3,415 A320 aircraft exclusively with alliance passengers [2][7]. - The LATAM Pass program has over 51 million members worldwide and has grown by 40% since 2019, making it the fourth-largest loyalty program in the Americas and the seventh-largest globally [4]. Group 2: Strategic Importance - The renewal of the alliance is a strategic decision aimed at strengthening the value proposition for customers, which has proven to be relevant and widely appreciated [3]. - The Santander LATAM Pass alliance currently has more than 688,000 customers, making it the most established and valued loyalty program in Chile [4]. Group 3: Financial Overview of Banco Santander Chile - As of June 30, 2025, Banco Santander Chile had total assets of Ch$66,188,442 million (US$69,371 million), total gross loans of Ch$40,942,542 million (US$42,911 million), total deposits of Ch$29,614,613 million (US$31,039 million), and shareholders' equity of Ch$4,514,322 million (US$4,731 million) [8]. - The BIS capital ratio was 17.0%, with a core capital ratio of 10.9%, and the bank employed 8,660 people with 231 branches throughout Chile [8].

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Financial Data and Key Metrics Changes - Banco Santander Chile reported a net income of $550 million for the first half of 2025, with a return on equity (ROE) of 25.1% [19] - The bank achieved an ROE of 24.5% in the second quarter of 2025, marking the fifth consecutive quarter with an ROE above 20% [19] - The net interest margin (NIM) improved to around 4.1%, reflecting a 100 basis point increase year-on-year [10][22] Business Line Data and Key Metrics Changes - The number of current accounts increased by 10% year-on-year, contributing to a 78% growth in active clients [20] - Credit card transactions rose by 12% year-on-year, while mutual funds brokered by the bank grew by 19% [20] - The bank's efficiency ratio reached 35.3%, the best in the Chilean industry for 2025 [23] Market Data and Key Metrics Changes - The Chilean peso depreciated to around $9.70 per dollar, influenced by renewed trade tensions [6] - GDP growth for the second quarter was reported at 2.9% year-on-year, with inflation at 4.1% in June [7][8] Company Strategy and Development Direction - The bank has migrated its legacy mainstream service to the cloud, enhancing its digital strategy [14] - Initiatives such as smart POS enhancements and the launch of Santander to Comuna aim to increase transactionality and strengthen the funding base [15][16] - The bank is focusing on expanding its client base, particularly through simple savings accounts for children [16] Management's Comments on Operating Environment and Future Outlook - Management expects loan book growth to be in low single digits for the remainder of 2025 due to the political landscape and global uncertainty [30] - The cost of risk is anticipated to improve slightly, with expectations of a year-end rate around 1.35% [31] - The bank maintains a positive outlook for profitability, projecting ROEs in the range of 21% to 23% for the year [32] Other Important Information - The bank secured 18.3% of the total mortgage subsidy auction, the highest among peers [11] - The CET1 ratio reached 10.9%, well above the minimum requirement, indicating strong capital generation [28] Q&A Session Questions and Answers Question: Future Contribution of Consumer Loans and Sustainable Cost of Risk - Management expects healthy growth in consumer loans, with a cost of risk projected to be around 1.35% for the year, gradually improving in the second half [34][36] Question: Loan Growth Post-Elections - Management indicated uncertainty regarding loan growth post-elections but noted potential for acceleration depending on the political landscape [45][50] Question: Risks Around Upcoming Elections - The main risks identified include external factors such as US-China trade dynamics and potential global economic slowdowns [58][59] Question: NPL Normalization - Management expects NPLs to normalize below 3% by early 2026, with improvements anticipated primarily from the commercial portfolio [66][68] Question: Net Interest Margin Outlook - The bank expects NIM to stabilize around 4.1% for the year, with potential for similar levels in 2026, influenced by monetary policy and inflation trends [72][73]

Financial Data and Key Metrics Changes - The bank achieved a net income of $550 million for the first half of 2025, with a return on equity (ROE) of 25.1% [17] - In Q2 2025, the net income was MXN $273 billion, resulting in an ROE of 24.5%, marking the fifth consecutive quarter with an ROE above 20% [17] - The net interest margin (NIM) improved to around 4.1%, reflecting a 100 basis point increase year-on-year [20][21] Business Line Data and Key Metrics Changes - The number of current accounts increased by 10% year-on-year, contributing to a 78% growth in active clients [19] - Credit card transactions rose by 12% year-on-year, while mutual funds brokered saw a 19% increase [19] - The bank's efficiency ratio reached 35.3%, the best in the Chilean industry for 2025 [22] Market Data and Key Metrics Changes - The Chilean peso depreciated to around $9.70 per dollar, influenced by renewed trade tensions [6] - GDP growth for Q2 was reported at 2.9% year-on-year, with inflation at 4.1% in June [7] Company Strategy and Development Direction - The bank completed the migration of its legacy mainstream service to the cloud, enhancing its digital strategy [13] - Initiatives such as smart POS enhancements and the launch of Santander to Comuna aim to increase transactionality and strengthen the funding base [14][15] - The bank is focusing on expanding its client base, particularly through simple savings accounts for children [15] Management's Comments on Operating Environment and Future Outlook - Management expects loan book growth to be in low single digits due to upcoming elections and global uncertainties [29] - The cost of risk is anticipated to improve slightly, with expectations of ROEs in the range of 21% to 23% for the year [30][31] - Political dynamics and global trade tensions are seen as key risks impacting the business [56] Other Important Information - The bank's CET1 ratio reached 10.9%, well above the minimum requirement [27] - The bank has been recognized for sustainability, ranking highly in the MSCI Sustainability Index [16] Q&A Session Summary Question: Future contribution of consumer loans and sustainable cost of risk - Management expects healthy growth in consumer loans, with a cost of risk around 1.35% for the year, gradually improving [34][36] Question: Loan growth post-elections - Management indicated uncertainty regarding loan growth acceleration post-elections, with a focus on consumer lending and SME growth [43][49] Question: Risks around the business with upcoming elections - Key risks include global economic dynamics, particularly US-China trade relations, and potential political volatility [56] Question: NPL normalization expectations - Management anticipates NPLs to normalize below 3% by early 2026, with improvements expected primarily from the commercial portfolio [66] Question: Net interest margin outlook - NIM is expected to stabilize around 4.1% for the year, with potential fluctuations based on inflation and interest rate changes [70]

Financial Performance - Banco Santander Chile's net income attributable to shareholders for 6M25 was Ch$550355 million, a 628% increase year-over-year[65] - Net interest income for 6M25 reached Ch$1033547 million, up 260% year-over-year[65] - Total fees for 6M25 amounted to Ch$2967 billion, reflecting a 132% increase year-over-year[25,65] - Results from financial transactions totaled Ch$1342 billion, a 238% increase year-over-year[25,65] Balance Sheet and Loan Portfolio - Total loans reached Ch$40943 billion in 6M25, showing a 10% increase year-over-year[66] - Mortgage loans totaled Ch$17487 billion, a decrease of 01% year-over-year[66] - Commercial loans amounted to Ch$17545 billion, up 13% year-over-year[66] - Consumer loans reached Ch$5896 billion, increasing by 34% year-over-year[66] Efficiency and Asset Quality - The efficiency ratio was 353% in 6M25, positioning the bank as best in class[32,33,34] - The recurrence rate was 619%[34,35] - The NPL (Non-Performing Loans) ratio was 30%[40,79]

SANTIAGO, Chile, July 31, 2025 (GLOBE NEWSWIRE) -- Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its results1 for the six-month period ended June 30, 2025, and second quarter 2025 (2Q25). Solid financial performance with a ROAE2 of 24.5% in 2Q253, the fifth consecutive quarter with a ROAE above 20%. As of June 30, 2025, the Bank's net income attributable to shareholders totaled $550 billion ($2.92 per share and $1.25 per ADR), representing an increase of 62.8% YoY4 and with an ROAE of ...

Company Overview - Banco Santander-Chile (BSAC) is headquartered in Santiago, Chile, and operates in the Finance sector [3] - The stock has experienced a price change of 32.72% since the beginning of the year [3] Dividend Information - BSAC currently pays a dividend of $0.99 per share, resulting in a dividend yield of 3.96% [3] - The dividend yield of BSAC exceeds the Banks - Foreign industry's yield of 3.33% and the S&P 500's yield of 1.54% [3] - The current annualized dividend of $0.99 represents a 74% increase from the previous year [4] - Over the last 5 years, BSAC has increased its dividend 3 times year-over-year, with an average annual increase of 9.01% [4] - The company's current payout ratio is 25%, indicating that it paid out 25% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, BSAC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $2.31 per share, reflecting a year-over-year growth rate of 22.87% [5] Investment Appeal - BSAC is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Core Insights - Banco Santander Chile has appointed Andrés Trautmann Buc as the new CEO and Country Head, succeeding Román Blanco, who had a successful tenure [1][2] - The bank is recognized as the leading institution in Chile for loans, serving nearly one in three SMEs, and boasts a return on equity (ROE) of 25.9% [2] - Trautmann aims to leverage Santander's global presence to enhance the growth of Chilean companies and improve customer service across different regions [2][3] Company Performance - As of March 31, 2025, Banco Santander Chile reported total assets of Ch$67,059,423 million (approximately US$70,284 million) and total gross loans of Ch$41,098,666 million (approximately US$43,075 million) [5] - The bank's total deposits stood at Ch$30,607,715 million (approximately US$32,080 million) with bank owners' equity of Ch$4,400,233 million (approximately US$4,612 million) [5] - The BIS capital ratio was reported at 16.9%, with a core capital ratio of 10.7% [5] Employee and Branch Network - Banco Santander Chile employs 8,712 people and operates 237 branches throughout the country [6] - The bank has received high credit ratings from various agencies, including an A2 rating from Moody's and A- from Standard & Poor's, all with a stable outlook [6] Leadership Background - Andrés Trautmann has a strong background in the banking sector, having joined Santander in 2007 and held various key positions, including Head of Markets and Executive Vice President of CIB [3][4] - His leadership is expected to drive the bank's growth and innovation in digital banking and customer service [4]

Company Overview - Banco Santander Chile will hold a conference call-webcast on August 5, 2025, at 11:00 AM ET to discuss its 2Q 2025 financial results [1] - The Management Commentary report will be published on July 31, 2025, before the market opens, with a quiet period starting on July 17 [2] Financial Performance - As of March 31, 2025, Banco Santander Chile had total assets of Ch$67,059,423 million (US$70,284 million) [4] - The bank's total gross loans at amortized cost were Ch$41,098,666 million (US$43,075 million) [4] - Total deposits amounted to Ch$30,607,715 million (US$32,080 million) [4] - Bank owners' equity was reported at Ch$4,400,233 million (US$4,612 million) [4][5] - The BIS capital ratio stood at 16.9%, with a core capital ratio of 10.7% [5] Operational Details - As of March 31, 2025, the bank employed 8,712 people and operated 237 branches throughout Chile [5] - Contact information for investor relations includes Cristian Vicuña, Rowena Lambert, and María Magdalena Rosende [3]

Company Performance - Axos Financial (AX) has returned 6.7% year-to-date, outperforming the Finance sector's average return of 5.8% [4] - The Zacks Consensus Estimate for Axos Financial's full-year earnings has increased by 2% over the past quarter, indicating improving analyst sentiment [3] Industry Context - Axos Financial is part of the Financial - Miscellaneous Services industry, which has seen an average loss of 3.3% this year, highlighting Axos Financial's relative strength [5] - The Finance sector includes 857 individual stocks and currently holds a Zacks Sector Rank of 5, indicating its performance relative to other sectors [2] Comparative Analysis - Banco Santander-Chile (BSAC) has significantly outperformed the Finance sector with a year-to-date return of 25.5% and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Banks - Foreign industry, to which Banco Santander-Chile belongs, has moved up by 21.8% this year, ranking 17 among 66 industries [6]