Banco Santander-Chile(BSAC) - 2023 Q2 - Quarterly Report

Financial Performance - The bank reported a consolidated profit for the period of MCh$ 272,622 for the six months ending June 30, 2023, down from MCh$ 529,194 in the same period of 2022[15]. - Consolidated profit for the period ending June 30, 2023, was MCh$ 272,622, a decrease from MCh$ 529,194 in the same period of 2022, representing a decline of 48.6%[32]. - Profit for the quarter ended June 30, 2023, was MCh$ 132,834, down from MCh$ 289,488 in the same quarter of 2022[15]. - Earnings per share attributable to equity holders decreased to 1.40 from 2.77 year-over-year, reflecting a decline of 49.6%[32]. - Total operating income for the six months ended June 30, 2023, was MCh$ 967,701, down from MCh$ 1,252,458 in 2022, a decrease of 22.7%[47]. - Operational result before tax for the six months ended June 30, 2023, was MCh$ 297,146, a decrease of 51.7% from MCh$ 615,340 in 2022[47]. - Net interest income for the six months ended June 30, 2023, was MCh$ 299,922, down from MCh$ 353,136 in 2022, a decrease of 15.0%[46]. - The total comprehensive income for the period was MCh$ 383,799, compared to MCh$ 362,931 in the same period last year[15]. Assets and Liabilities - As of June 30, 2023, total liabilities amounted to MCh$ 64,394,098, a slight increase from MCh$ 63,926,232 as of December 31, 2022[8]. - Total equity as of June 30, 2023, was MCh$ 4,287,883, compared to MCh$ 4,238,372 at the end of 2022, reflecting a growth in equity[8]. - The bank's financial liabilities at amortized cost increased to MCh$ 45,880,067 from MCh$ 43,704,024 in the previous period[8]. - Other liabilities decreased to MCh$ 1,846,587 from MCh$ 2,041,682, indicating a reduction in obligations[8]. - Total assets as of June 30, 2023, increased to MCh$ 68,681,981 from MCh$ 68,164,604 as of December 31, 2022, marking a growth of 0.76%[43]. - The total liabilities from financing activities as of June 30, 2023, amount to MCh$ 9,602,154, reflecting a decrease of MCh$ 267,606 from the previous period[98]. Cash Flow - Total cash flow used in investment activities for June 30, 2023, was MCh$ (26,164), compared to MCh$ (21,657) in 2022, indicating an increase of 23.1%[57]. - Total cash flows used in financing activities for the period amount to MCh$ (275,463)[96]. - Total cash flow provided by operating activities decreased to MCh$ 671,871 from MCh$ 887,206, a decline of 24.3%[71]. - The final balance of cash and cash equivalents as of June 30, 2023, is MCh$ 2,358,686, compared to MCh$ 2,971,288 in the previous year[96]. - The bank's cash and deposits in banks increased to MCh$ 2,342,891 as of June 30, 2023, from MCh$ 1,982,942 as of December 31, 2022, an increase of 18.2%[43]. Provisions and Expenses - The bank's provisions for dividends and interest payments decreased significantly to MCh$ 83,471 from MCh$ 247,508 year-over-year[8]. - Credit loss expenses increased to MCh$ 231,587 for the six months ended June 30, 2023, compared to MCh$ 162,602 in the same period of 2022, an increase of 42.4%[47]. - The bank's administrative expenses for the six months ended June 30, 2023, were MCh$ 149,385, up from MCh$ 144,102 in 2022, an increase of 3.0%[47]. Financial Instruments and Derivatives - Financial derivatives contracts for hedge accounting were valued at MCh$ 2,678,427, a decrease from MCh$ 2,788,794[8]. - The effective portion of cash flow hedges is recorded in the Interim Consolidated Statements of Other Comprehensive Income[196]. - The company has elected to continue using IAS 39 guidelines for hedge accounting, ensuring compliance with established standards[190]. - The company uses financial derivatives for customer risk management and for hedging its proprietary positions[189]. Ownership and Structure - As of June 30, 2023, Banco Santander Spain directly or indirectly owns 99.5% of Santander Chile Holding SA and 100% of Teatinos Siglo XXI Inversiones SA, controlling 67.18% of the Bank's shares[87]. - The Bank's subsidiaries include Santander Corredora de Seguros Limitada, with a 99.76% ownership, and Santander Corredores de Bolsa Limitada, with a 51.00% ownership[94]. - The Bank's associates include entities like Centro de Compensación and Sociedad Interbancaria de Depósito de Valores SA, with ownership percentages ranging from 12.48% to 33.43%[127]. Accounting Policies - The Bank's interim consolidated financial statements are prepared following the Compendium of Accounting Standards for Banks and IFRS standards[88]. - Adjustments are made to the financial statements of subsidiaries to ensure consistency with the Bank's accounting policies[123]. - The Bank's operating segments are reviewed regularly by the highest authority regarding decision-making, ensuring compliance with IFRS 8[116]. - The Bank recognizes financial assets and liabilities only when they become part of the contractual terms of the instrument[138]. Market and Economic Conditions - As of June 30, 2023, the exchange rate for the US dollar was $800.94 per USD, compared to $922.12 per USD in June 2022 and $849.59 per USD in December 2022[152]. - The company maintains a business model focused on the collection and sale of financial assets, leading to a higher frequency and value of sales[177].