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]

Core Viewpoint - Banco Santander Chile reported strong financial performance for the first half of 2025, with significant increases in net income and return on average equity (ROAE), driven by growth in key revenue lines and a strong customer base [2][4][11]. Financial Performance - The bank's net income attributable to shareholders reached $550 billion, a 62.8% year-over-year increase, with an ROAE of 25.1% for the first half of 2025, compared to 15.8% in the same period of 2024 [2][11]. - Operating income increased by 22.0% year-over-year, supported by improved net interest and readjustment income, as well as higher fees and results from financial transactions [2][4]. Quarterly Comparison - Compared to the previous quarter (1Q25), net income decreased slightly by 0.5%, attributed to lower adjustment gains and higher loan loss provisions, although this was offset by increased interest income and cost controls [3][5]. Net Interest Margin (NIM) - The NIM improved to 4.1% in 2Q25, with accumulated net interest and readjustment income increasing by 26.0% compared to the same period in 2024, driven by a lower monetary policy rate and higher readjustment income [4][5]. Customer Base Growth - The total customer base grew by 11.5% year-over-year, with digital customers increasing by 7.9%, reflecting the success of the bank's strategy to enhance digital products [6][7]. Market Share and Commissions - The bank maintained a strong market share of 22.4% in checking accounts, bolstered by increased demand for US dollar accounts and effective cross-selling strategies [7]. - Net commissions rose by 13.2% in the first half of 2025, leading to a recurrence ratio of 61.9%, indicating that over half of the bank's expenses are funded by customer-generated commissions [8][9]. Efficiency and Capital Ratios - The efficiency ratio improved to 35.3% in the first half of 2025, down from 42.1% in the same period last year, despite a 2.3% increase in total operating expenses [9][11]. - The Common Equity Tier 1 (CET1) ratio stood at 10.9%, with an overall Basel III ratio of 17.0%, reflecting strong capital management [11][12].

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]

Core Insights - The article compares Banco Santander-Chile (BSAC) and Nu Holdings Ltd. (NU) to determine which stock offers better value for investors [1] Valuation Metrics - BSAC has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while NU has a Zacks Rank of 3 (Hold) [3] - BSAC's forward P/E ratio is 10.33, significantly lower than NU's forward P/E of 22.62 [5] - BSAC has a PEG ratio of 0.69, while NU's PEG ratio is 0.70, suggesting similar growth expectations [5] - BSAC's P/B ratio is 2.49, compared to NU's P/B of 6.8, indicating BSAC is more undervalued relative to its book value [6] - Based on these metrics, BSAC holds a Value grade of B, while NU has a Value grade of D [6] Earnings Outlook - BSAC is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

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 31.28% since the beginning of the year [3] Dividend Information - BSAC is currently paying a dividend of $0.99 per share, resulting in a dividend yield of 4.01%, which is higher than the Banks - Foreign industry yield of 3.39% and the S&P 500 yield of 1.57% [3] - The annualized dividend of $0.99 represents a 74% increase from the previous year [4] - Over the last five years, BSAC has increased its dividend three times year-over-year, averaging an annual increase of 9.01% [4] - The current payout ratio for BSAC is 25%, indicating that it paid out 25% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for BSAC's earnings for 2025 is $2.31 per share, reflecting a year-over-year growth rate of 22.87% [5] Investment Perspective - BSAC is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]