Investors in Banco Santander-Chile (BSAC) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $25.00 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It cou ...

Financial Data and Key Metrics Changes - Banco Santander-Chile reported a net income of CLP218 billion for Q2 2024, representing an 81% increase compared to Q1 2024, with a return on equity (ROE) of 20.7% for the quarter and 15.8% year-to-date, up 285 basis points year-over-year [21][22][35] - The net interest margin (NIM) for Q2 2024 was 3.6%, with a year-to-date NIM of 3.1%, and the bank expects the NIM to reach between 3.3% and 3.5% for the full year [25][34] Business Line Data and Key Metrics Changes - Retail loans grew steadily, driven by consumer and mortgage loans, while commercial loans contracted by 5.5% in the quarter, influenced by a change in consolidation perimeter and lower economic activity [22][34] - Getnet, the acquiring business, generated fees totaling CLP29.9 billion and a net income of CLP7.7 billion during the first half of 2024, with over 227,000 active point of sale terminals [17][21] Market Data and Key Metrics Changes - The Chilean economy showed a GDP growth of 1.6% annually for Q2 2024, with a downward revision of the annual GDP estimate from 2.8% to 2.5% for 2024 [3][4] - Inflation is expected to rise, with the CPI estimate increased from 3.9% to 4.3% for 2024, while the Central Bank has cut the monetary policy rate by 250 basis points in the first half of 2024 [6][7] Company Strategy and Development Direction - The company is committed to its "Chile First" strategy, focusing on becoming a digital bank with a physical presence through innovative work/cafes, aiming to reach 5 million customers and 450,000 SME clients [10][12] - The bank emphasizes providing specialized value-added services and fostering innovation to redefine the banking landscape, with a focus on sustainable finance and advisory products [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan growth prospects, expecting mid-single-digit growth for the full year, driven by improving economic conditions and lower interest rates [34][46] - The bank anticipates a normalized NPL ratio in the low-2% range as economic activity recovers, with expectations for a turnaround in the commercial portfolio within the next six to nine months [55][56] Other Important Information - The bank's efficiency ratio improved to 37.6% in Q2 2024, with a focus on controlled expenses and improved financial income [32] - The bank's BIS ratio was reported at 17.4% and a core equity ratio of 10.6%, with a dividend payout provision increased to 60% of 2024 income [33] Q&A Session Summary Question: Details on Bansa deconsolidation - Management clarified that Bansa was deconsolidated due to legal restrictions and its commercial dependence on Santander Consumer Finance, with no ownership or impact on net income [36][37][40] Question: Loan growth expectations - Management expects loan growth to accelerate in 2025, projecting nominal growth in the high-single-digit range, driven by consumer and auto loans [43][46] Question: Asset quality and NPLs - Management indicated that NPLs are expected to stabilize in the low-2% range, with a turnaround anticipated in the commercial portfolio within six to nine months [55][56] Question: NIM and fee growth expectations for 2025 - Management expects NIMs to remain stable around 3.5% to 3.7% in 2025, with fees projected to grow in the mid- to high-single-digit range [60][62]

August 2, 2024 Banco Santander Chile Santander 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 and future ...

Core Viewpoint - Banco Santander Chile (BSAC) is currently considered an impressive value stock, with strong earnings outlook and undervaluation indicators [4][6]. Group 1: Valuation Metrics - BSAC has a PEG ratio of 0.37, significantly lower than the industry average of 0.66, indicating potential undervaluation [3]. - The stock's P/CF ratio stands at 11.47, compared to the industry's average of 12.75, further suggesting that BSAC may be undervalued based on its cash flow outlook [7]. Group 2: Investment Ratings - BSAC holds a Zacks Rank of 2 (Buy) and a Value grade of A, highlighting its attractiveness to value investors [6]. Group 3: Market Trends - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis to find undervalued companies [5].

Finally, investors will want to recognize that BSAC has a P/CF ratio of 11.99. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BSAC's P/CF compares to its industry's average P/CF of 12.70. Over the past 52 weeks, BSAC's P/CF has been as high as 16.04 and as low as 9.54, with a median of 11.70. SAN's Forward P/E has been as high as 6.42 and as low as 4.44, with a median of 5.47. During the same time period, ...

Financial Results and Key Metrics - Banco Santander Chile will publish its Management Commentary report on July 31, 2024, before the market opens, with a quiet period starting on July 17 [1] - As of March 31, 2024, the bank reported total assets of Ch$ 74,780,252 million (approximately U.S.$ 76,187 million), outstanding gross loans of Ch$ 41,360,775 million (approximately U.S.$ 42,139 million), total deposits of Ch$ 30,416,891 million (approximately U.S.$ 30,234 million), and shareholders' equity of Ch$ 4,163,041 million (approximately U.S.$ 4,241 million) [3] - The BIS capital ratio as of March 31, 2024, was 17.0%, with a core capital ratio of 10.4% [3] Conference Call Information - Banco Santander Chile will hold a conference call-webcast on August 2, 2024, at 10:00 AM (New York Time) to discuss its 2Q 2024 financial results, featuring key bank officers [4] - Participants can access the webcast presentation via a specific link and are advised to dial in approximately 10 minutes prior to the start time [5] Risk Classification and Ratings - Banco Santander Chile holds one of the highest risk classifications in Latin America with an A2 rating [3] - The bank has received various ratings from credit agencies, including A- from Standard and Poor's and AA- from HR Ratings, all with a Stable Outlook [7]

SANTIAGO, Chile, July 11, 2024 (GLOBE NEWSWIRE) -- You are cordially invited to participate in Banco Santander Chile's (NYSE: BSAC) conference call-webcast on Friday, August 2, 2024, at 10.00 AM (New York Time) where we will discuss 2Q 2024 financial results. The Bank's Officers participating in the conference call are: Emiliano Muratore, CFO, Cristian Vicuña, Chief Strategy Officer & Head of IR and Carmen Gloria Silva, Economist. A question and answer session will follow the presentation. Or please dial in ...

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. Most Powerful Force Impacting Stock Prices Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Banco Santande ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis ...

Core Viewpoint - Investors seeking undervalued stocks in the Banks - Foreign sector should consider Banco Santander-Chile (BSAC) and ICICI Bank Limited (IBN), with BSAC appearing to be the superior option based on valuation metrics and earnings outlook [1]. Valuation Metrics - BSAC has a P/B ratio of 1.39, indicating a lower market value compared to its book value, while IBN has a P/B ratio of 2.84, suggesting it is more expensive relative to its book value [3]. - The forward P/E ratio for BSAC is 10.20, significantly lower than IBN's forward P/E of 17.43, indicating that BSAC may be undervalued [5]. - BSAC's PEG ratio stands at 0.38, which is favorable compared to IBN's PEG ratio of 2.23, suggesting that BSAC has better expected earnings growth relative to its price [5]. Earnings Outlook - BSAC has shown a stronger improvement in its earnings outlook compared to IBN, which is a critical factor for value investors [4]. - The Zacks Rank for BSAC is 2 (Buy), while IBN holds a Zacks Rank of 3 (Hold), further supporting the notion that BSAC is the better investment choice at this time [4]. Value Grades - BSAC has received a Value grade of B, while IBN has a Value grade of C, indicating that BSAC is viewed more favorably in terms of value metrics [9].