Banco Santander Chile 4Q19 & 12M19 Results 1 1 January 29, 2020 Important information Banco Santander Chile caution that this presentation contains forward looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our ju ...

Banco Santander Chile 3Q19 Results 1 1 October 30, 2019 Important information Banco Santander Chile caution that this presentation contains forward looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment a ...

Banco Santander-Chile (NYSE:BSAC) Q3 2019 Earnings Conference Call October 30, 2019 10:00 AM ET Company Participants Emiliano Muratore - CFO Claudio Soto - Chief Economist Robert Moreno - Manager, IR Conference Call Participants Jorg Friedemann - Citigroup Ernesto Gabilondo - Bank of America Merrill Lynch Gabriel Nóbrega - Citigroup Neha Agarwala - HSBC Yuri Fernandes - JP Morgan Operator Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2019 Banco Santander-Chile Earnings Conference Ca ...

Banco Santander-Chile (NYSE:BSAC) Q2 2019 Earnings Conference Call July 29, 2019 11:00 AM ET Company Participants Emiliano Muratore - CFO Claudio Soto - Chief Economist Robert Moreno - Manager, IR Conference Call Participants Jorg Friedemann - Citigroup Jason Mollin - Scotiabank Sebastián Gallego - CrediCorp Capital Neha Agarwala - HSBC Michael Brcic - National Securities Corporation Alonso Garcia - Crédit Suisse Operator Good day, ladies and gentlemen, and welcome to the Q2 2019 Banco Santander-Chile Earni ...

Market and Economic Risks - The company is vulnerable to disruptions and volatility in global financial markets, which could materially affect its business operations and financial condition [46]. - Economic downturns could lead to reduced demand for the company's products and services, adversely affecting revenue [48]. - Market turmoil and economic recession could increase non-performing loan ratios and decrease demand for borrowings, adversely affecting financial performance [55]. - The uncertainty in the global economic environment may delay recovery in the financial industry, impacting the company's financial condition [49]. - The Chilean economy's volatility may negatively impact the company's asset quality and profitability, particularly in lending activities [105]. - Any future fluctuations in oil prices may lead to economic instability in Chile, affecting borrowers in the oil sector and overall loan portfolio quality [105]. - High inflation levels in Chile could adversely affect the company's business, financial condition, and results of operations, with CPI inflation recorded at 2.6% in 2018 compared to 2.3% in 2017 [109]. Regulatory and Compliance Risks - Increased regulation in the industry is expected to raise costs and may impact pricing for products and services, potentially limiting business opportunities [49]. - The potential for increased costs associated with regulatory compliance could adversely affect the financial condition and results of operations [55]. - Regulatory scrutiny has increased, leading to higher compliance costs and potential penalties for non-compliance [75]. - The new General Banking Law requires a total equity requirement of 10.5% of risk-weighted assets, an increase from the previous 8% [70]. - Minimum Tier 1 capital increased from 4.5% to 6% of risk-weighted assets under the new regulations [70]. - The conservation buffer has been raised from 2% to 2.5% of risk-weighted assets under the new General Banking Law [70]. - The financial market commission (FMC) will oversee the implementation of new capital regulations and ensure compliance with the laws governing the financial system [69]. - The FMC may impose additional capital requirements of up to 4% of risk-weighted assets if deemed necessary for financial stability [72]. - The company is subject to extensive regulation, which may change at any time, potentially increasing compliance costs and affecting financial performance [112]. Competition and Market Position - The company faces increased competition from both traditional and non-traditional banking service providers, which may negatively impact growth prospects [53]. - The company has a strong position in the credit card market, supported by a co-branding agreement with Chile's largest airline, renewed for seven more years [54]. - The company's ability to adapt to technological changes and customer behavior is critical for maintaining its competitive position [53]. Financial Performance and Condition - Credit ratings are crucial for funding costs; any downgrade could increase borrowing costs and limit access to capital markets [51]. - The company may experience lower revenues from fee and commission-based businesses due to decreased customer risk tolerance towards non-deposit investments [56]. - As of December 31, 2018, the company's non-performing loans totaled Ch$631,649 million, representing a ratio of 2.1% to total loans [58]. - The allowance for loan losses was Ch$882,450 million, with a ratio of 2.9% to total loans as of December 31, 2018 [58]. - The residential mortgage loan portfolio amounted to Ch$10,150,981 million, accounting for 33.6% of total loans as of December 31, 2018 [61]. - Retail customers represented 68.8% of the total loan portfolio at amortized cost as of December 31, 2018 [61]. - The company is exposed to fluctuations in interest rates, which could adversely affect net interest income and overall profitability [63]. - Increased interest rates may lead to reduced loan origination volumes and higher delinquencies in outstanding loans [63]. - The company faces liquidity and funding risks that could materially affect its operations [65]. - Time deposits represented 33.4% of total liabilities and equity as of December 31, 2018, indicating reliance on this funding source [66]. - The top 20 time deposits accounted for 19.7% of total time deposits, amounting to U.S.$3.7 billion [66]. - As of December 31, 2018, the liquidity coverage ratio (LCR) was 151.6%, exceeding the 100% minimum requirement [67]. - The regulatory capital to risk-weighted assets ratio was 13.4% as of December 31, 2018, with a core capital ratio of 10.6% [67]. - The liquidity coverage ratio (LCR) is set to reach a minimum of 100% by January 1, 2022, starting from 60% in 2019, increasing by 10% annually [74]. Operational and Technological Risks - Significant investments in information technology infrastructure are necessary for the company to remain competitive, and failure to upgrade these systems could have a material adverse effect [85]. - The company is exposed to operational and regulatory risks due to reliance on third-party vendors for key business components, which could lead to reputational damage and regulatory investigations [90]. - Cybersecurity risks are inherent in the company's operations, and failure to effectively manage these risks could result in significant financial losses and reputational harm [87]. - The company is actively working to limit client exposure to credit card fraud through various protective measures, but potential legal changes may increase financial costs related to cybercrime [89]. Human Resources and Labor Relations - The company relies on skilled personnel for its success, and failure to attract and retain qualified employees could adversely affect its operations and financial condition [93]. - As of December 31, 2018, the company had 11,305 employees, with 75.1% unionized, and a new collective bargaining agreement effective until August 31, 2021 [116]. - Future labor law reforms in Chile could adversely affect the company's business operations and financial condition [122]. Legal and Reputational Risks - Provisions for legal contingencies amounted to Ch$923 million as of December 31, 2018, indicating potential exposure to legal and regulatory risks [96]. - The company is exposed to risks from legal and regulatory proceedings, which could result in monetary judgments and regulatory enforcement actions [96]. - Maintaining a positive reputation is critical for the company, as damage to its reputation could significantly harm its business prospects and client relationships [91]. Shareholder and Governance Issues - Santander Spain controls 67.18% of the company's shares, allowing it to elect the majority of directors and influence corporate decisions [127]. - Approximately 33.0% of the company's outstanding common stock is held by the public, indicating a concentrated ownership structure [131]. - The company operates under a Foreign Investment Contract that grants ADS holders access to the Formal Exchange Market for repatriating earnings [124]. - The company is exempt from certain NYSE corporate governance standards due to its status as a controlled company and foreign private issuer [130]. - Holders of ADSs may face practical limitations in exercising voting rights compared to direct shareholders [134]. - The company has adopted a corporate governance framework that may increase Santander Spain's control over its operations [129].