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]