The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of XGD INC. 深 圳 市 新 國 都 股 份 有 限 公 司 (A joint stock company incorporated in the People's Republic of China with limited ...

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]