Banco Santander-Chile Announces Fourth Quarter 2023 Earnings

SANTIAGO, Chile, Feb. 02, 2024 (GLOBE NEWSWIRE) -- Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its resultsⁱ for the twelve-month period ended December 31, 2023, and fourth quarter 2023 (4Q23).

ROAE of 16.6% in 4Q23 and 11.9% in 12M23, with a solid net contribution from business segments that increases 34.7%.
As of December 31, 2023, net income attributable to shareholders reached Ch$496,404 million ($2.63 per share and US$ 01.20 per ADR), decreasing 38.6% compared to the same period last year and with an ROAE of 11.9%. This lower result was mainly due to the impacts perceived in the NIM produced by the deceleration of inflation during the year and higher interest rates that reduced the return on assets in UF and increased the funding costs, respectively.

The net contribution of our business segments continues to be very strong, increasing 34.7 YoY. Specifically, the Retail Banking segment increased 25.6% YoY with total revenues increasing 22.0% YoY. The net contribution of the Middle-market segment increased 27.9% YoY, with an increase in total revenues of 16.3% YoY. Finally, the net contribution of our Corporate and Investment Banking (CIB) unit grew 65.4% YoY, driven by a 42.8% YoY increase in total revenues.

Net income from fees increases 22.4% in 12M23, with the recurrence ratio reaching 55.3%.
During 12M23, net commissions increased 22.4% YoY due to an increase in clients and greater usage of our products. With this, the recurrence ratio (total net fees divided by total expenses) increased from 42.4% accumulated as of December 2022 to 55.3% accumulated as of December 2023, demonstrating that more than half of the Bank's expenses are financed with the commissions generated by our clients.

In 4Q23, commissions decreased 5.2% Q/Q, mainly because the other commissions line fell due to a quarter with fewer insurance brokerage commissions and lower collections. However, commissions on our main products continue to show good trends.

Top 1 in NPS among our Chilean peers
The first pillar of our strategy is based on cutting-edge technology and customer-focused processes and products. We are building a bank with strengths in digital channels that already allows digital onboarding in a safe, fast and user-friendly way, offering our Life and Más Lucas accounts for the mass segment and the PYME (SME) Life account and payment services through Getnet for small and medium-sized businesses and entrepreneurs. These initiatives not only encourage our clients to become more digital, they are also managing to increase financial inclusion in these segments and supporting them with transaction services, with the potential to extend the offer of other products and financing options.