Core Insights - Banco Santander Chile reported a strong financial performance for the first quarter of 2025, achieving a return on average equity (ROAE) of 25.7%, marking the fourth consecutive quarter with ROAE above 20% [2][3] - The bank's net income attributable to shareholders reached $278 billion, reflecting a 131.0% year-over-year increase, driven by a 33.2% increase in operating income [2][3] - The bank's efficiency ratio improved significantly to 35.0%, down from 47.4% in the same period last year, indicating better cost management [10] Financial Performance - The net income attributable to shareholders for 1Q25 was $278 billion, or $1.47 per share, compared to an ROAE of 11.2% in 1Q24 [2] - Operating income increased by 33.2% year-over-year, attributed to better net interest and readjustment income [2] - Compared to the previous quarter, net income increased by 0.5%, despite a slight decrease in readjustment gains due to lower UF variation [3] Dividend and Capital Ratios - A dividend payment of Ch$3.19 per share was approved, yielding 5.4%, with 70% of 2024 earnings distributed [4] - The Common Equity Tier 1 (CET1) ratio remained solid at 10.7%, with an overall Basel III ratio of 16.9% [6][15] Net Interest Margin and Income - The net interest margin (NIM) reached 4.1% in 1Q25, up from 2.7% in 1Q24, driven by a decrease in funding costs [7][8] - Net interest and readjustment income increased by 41.7% year-over-year, attributed to a lower monetary policy rate impacting funding costs [7] Customer Growth and Market Position - The customer base expanded by 9.4% year-over-year, with digital customers increasing by 6.6% [10][11] - The bank maintained a strong market share in checking accounts at 22.5%, supported by increased demand for US dollar accounts [12] Commission and Recurrence - Net commissions rose by 16.8% in 1Q25, with a recurrence ratio increasing from 57.8% to 61.8%, indicating a higher proportion of expenses financed by commissions [13] Operational Efficiency - The bank's efficiency ratio improved to 35.0%, with total operating expenses decreasing by 1.7% year-over-year [10] - The Gravity project, involving migration to the cloud, was a significant milestone, although it incurred higher technology expenses [9] Risk Ratings - Banco Santander Chile holds high risk ratings in Latin America, with stable outlooks from various credit rating agencies [14] Assets and Loans - As of March 31, 2025, total assets were Ch$67,059,423 million (approximately $70,284 million), with total gross loans at Ch$41,098,666 million (approximately $43,075 million) [15]

Company Overview - Banco Santander-Chile (BSAC) is headquartered in Santiago, Chile, and has experienced a price change of 30.01% this year [3] - The company currently pays a dividend of $1.01 per share, resulting in a dividend yield of 4.1%, which is higher than the Banks - Foreign industry's yield of 3.84% and the S&P 500's yield of 1.65% [3] Dividend Performance - The annualized dividend of $1.01 represents a 77.5% 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 is 29%, indicating that the company paid out 29% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - BSAC is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.15 per share, reflecting a 14.36% increase from the previous year [5] Investment Appeal - BSAC is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Banco Santander-Chile (BSAC) - BSAC currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, BSAC shares increased by 7.44%, outperforming the Zacks Banks - Foreign industry, which rose by 3.96% [5] - In the last quarter, BSAC shares rose by 19.23%, and over the past year, they increased by 33.28%, while the S&P 500 experienced declines of -9.81% and a modest gain of 9.65%, respectively [6] - The average 20-day trading volume for BSAC is 523,646 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for BSAC has increased, while none have decreased, raising the consensus estimate from $2.07 to $2.15 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive earnings momentum [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, BSAC is identified as a 2 (Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking short-term gains [11]

Core Viewpoint - The comparison between Banco Santander-Chile (BSAC) and HDFC Bank (HDB) indicates that BSAC presents a better value opportunity for investors at this time [1]. Valuation Metrics - BSAC has a forward P/E ratio of 11.32, while HDB has a forward P/E of 21.93 [5]. - The PEG ratio for BSAC is 1, compared to HDB's PEG ratio of 1.70, suggesting BSAC is more favorably valued in relation to its expected earnings growth [5]. - BSAC's P/B ratio is 1.94, whereas HDB's P/B ratio is 2.87, further indicating BSAC's relative undervaluation [6]. Earnings Outlook - BSAC is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The Zacks Rank for BSAC is 2 (Buy), while HDB holds a 3 (Hold) rating, reflecting a stronger earnings outlook for BSAC [3].

Company Overview - Banco Santander-Chile (BSAC) shares increased by 6.6% to $22.32 in the last trading session, following a 5.3% loss over the previous four weeks, indicating a significant recovery in stock performance [1] - The stock's rise was influenced by a broader market surge, particularly due to President Donald Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - BSAC is projected to report quarterly earnings of $0.51 per share, reflecting a year-over-year increase of 96.2% [2] - Revenue expectations for the upcoming report stand at $673.99 million, representing a 28.6% increase compared to the same quarter last year [2] Market Trends and Stock Performance - The consensus EPS estimate for BSAC has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] - In the same industry, Banco Bradesco (BBD) also saw a stock increase of 6.9% to $2.16, with a 1% return over the past month, and it holds a similar Zacks Rank of 3 [4][5]

Group 1: Financial Results and Conference Call - Banco Santander Chile will hold a conference call-webcast on May 8, 2025, at 10:00 AM (EST) to discuss its 1Q 2025 financial results [1] - The Management Commentary report will be published on April 30, 2025, before the market opens, with a quiet period starting on April 15 [2] Group 2: Contact Information and Participation - Participants can join the conference call using various international dial-in numbers, with a participant passcode of 720987 [2] - For inquiries, contact Cristian Vicuña, Rowena Lambert, or Claudia Villalon at Banco Santander Chile [3] Group 3: Financial Metrics - As of December 31, 2024, Banco Santander Chile reported total assets of $68,458,933 million (US$68,865 million), total gross loans of $41,323,844 million (US$41,569 million), total deposits of $31,359,234 million (US$31,545 million), and shareholders' equity of $4,292,440 million (US$4,318 million) [4] - The BIS capital ratio was 17.1%, with a core capital ratio of 10.5% as of December 31, 2024 [5] - The bank employs 8,757 people and operates 236 branches throughout Chile [5] Group 4: Credit Ratings - Banco Santander Chile holds various credit ratings: A2 from Moody's, A- from Standard and Poor's, A+ from Japan Credit Rating Agency, AA- from HR Ratings, and A from KBRA, all with a Stable Outlook [3]

Banco Santander Chile Management Commentary 4Q24 As of December 31, 2024 Important information Banco Santander Chile cautions that this document 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 ...

SANTIAGO, Chile, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Banco Santander Chile ("Santander Chile" or the "Company") (NYSE:BSAC, SSE: Bsantander)) announced today that its Annual Report on Form 20-F for the fiscal year ended December 31, 2024 (the "2024 Annual Report") has been filed with the U.S. Securities and Exchange Commission (the "SEC"). The 2024 Annual Report can be accessed either by visiting the SEC's website at www.sec.gov or Santander Chile's corporate website at www.santander.cl. In addition, sharehol ...

Cybersecurity and Data Risks - The company faces significant risks from cyber-attacks on critical infrastructure, which could negatively impact its ability to service customers [128]. - If the company or its third-party vendors experience data breaches, it may incur substantial costs, including remediation costs and reputational damage, potentially affecting customer retention [129]. - The company relies on third-party vendors for essential services, which poses operational and regulatory risks, including potential service outages and security breaches [135]. Artificial Intelligence and Operational Efficiency - The company is integrating artificial intelligence (AI) and machine learning (ML) technologies across various operations, including fraud detection and risk management, to enhance efficiency [133]. - There are inherent risks associated with AI usage, including potential flaws in algorithms and legal challenges, which could adversely affect operational efficiency and brand reputation [134]. Credit Ratings and Financial Stability - Credit ratings are crucial for the company's funding costs; any downgrade in Chile's sovereign debt could lead to a similar downgrade for the company, increasing borrowing costs [144]. - Moody's maintained an A2 credit rating for Chile, while S&P changed its outlook from negative to positive, which could influence the company's credit rating [144]. - A downgrade in credit ratings could limit access to capital markets and adversely affect the company's commercial business and liquidity [146]. Reputational and Legal Risks - The company is exposed to reputational risks from various sources, including employee misconduct and negative media coverage, which could impact customer and investor confidence [138]. - The company must manage potential conflicts of interest effectively to avoid litigation and maintain client trust, which is critical for its financial health [141]. - The bank faces risks from legal and regulatory proceedings, with increased scrutiny leading to potential monetary judgments and enforcement actions [211]. Asset Quality and Loan Performance - The ratio of non-performing loans to total loans at amortized cost increased to 3.17% as of December 31, 2024, compared to 2.26% as of December 31, 2023, primarily due to increased risk in commercial and consumer loans [156]. - The allowance for expected credit losses for loans classified as financial assets at amortized cost was Ch$1,192,690 million, with a ratio of 2.89% to total loans at amortized cost as of December 31, 2024 [156]. - The deterioration in asset quality is concentrated in the construction and agricultural sectors, particularly affecting SMEs [156]. Liquidity and Funding Risks - Liquidity risk is heightened by over-reliance on specific funding sources and market-wide phenomena, which could adversely affect the company's operations [176]. - As of December 31, 2024, 98.4% of customer deposits had remaining maturities of one year or less or were payable on demand, indicating a reliance on short-term funding [179]. - Time deposits represented 25.0% and 22.8% of total liabilities and equity as of December 31, 2024 and 2023, respectively [179]. Economic Environment and Regulatory Changes - Chile's economy contracted by 6.1% in 2020 due to the COVID-19 pandemic, with growth slowing to 0.2% in 2023 amid high inflation and interest rates [216]. - The corporate income tax rate in Chile increased to 27% in 2018, with a new tax reform approved in October 2024 aimed at increasing tax revenues by 1.5% of GDP [223]. - The Chilean banking sector is subject to evolving regulations that may increase compliance costs and limit business opportunities [198]. Banking Operations and Market Position - The company is the largest bank in Chile in terms of loans and the second largest in terms of total deposits [271]. - The company offers a wide range of commercial and retail banking services, including mortgage financing and financial advisory services [272]. - Santander-Chile achieved a market share of 17.2% in deposits, ranking second among banks in Chile [303]. Financial Performance and Metrics - For the year ended December 31, 2024, Santander-Chile reported total loans and accounts receivable of Ch$41,323,844 million and net income of Ch$859,850 million [287]. - The efficiency ratio of Santander-Chile was 39.0% as of December 31, 2024, making it the second most efficient bank in its peer group [309]. - The return on equity for Santander-Chile was 19.7% as of December 31, 2024, positioning it as the second most profitable bank in its peer group [314]. Shareholder and Governance Structure - The controlling shareholder, Santander Spain, holds 67.18% of the company's shares, significantly influencing corporate governance [239]. - The company's common stock is traded on the Santiago Stock Exchange, with approximately 32.8% of outstanding shares held by the public [242]. - The company is governed by Chilean corporate law, which may provide fewer rights to shareholders compared to other jurisdictions [249].

Banco Santander Chile February 7, 2025 2 2| Balance sheet and results 3| Conclusions 4| Annexes 6 7 1| Strategy 2023-2026 3| Conclusions 4| Annexes 9 | | 2024 | 2024 Targets | | | --- | --- | --- | --- | | Loan Growth | 4% (excluding effects from Bansa and Generate to | Mid single digit growth | | | | distribute model) | | | | NIM | 3.6% | 3.4% - 3.5% | > | | Fees | 9% YoY | High Single Digit growth | | | Efficiency | 39% | High 30%s | | | CoR | 1.29% | ~1.3% | > | | ROAE | 20.2% | 18% - 19% | | 10 | | 1Q24 ...