Banco Santander-Chile Announces First Quarter 2024 Earnings

SANTIAGO, Chile, April 30, 2024 (GLOBE NEWSWIRE) -- Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its results¹ for the three-month period ended March 31, 2024, and first quarter 2024 (1Q24).

Our CEO Strategy Update & 1Q24 results will be held on Tuesday, May 14, 2024 at 9.00am New York time. For more information please visit our website.

ROAE² of 11.2% in 1Q24³
As of March 31, 2024, net income attributable to owners of the Bank totaled $120 billion ($0.64 per share and US$0.26 per ADR), reflecting a decrease of 11.4% compared to the same period from the previous year, along with an ROAE of 11.2%. This variation is due to several factors. On the one hand, there is an increase of 30.9% in the net income from interest and readjustments although this increase is offset by higher loan loss provisions, an increase in other specific expenses related to provisions for restructuring, and a higher effective tax rate.

Solid capital levels with a CET1⁴ of 10.4% and a BIS ratio⁵ of 17.0%.
Our CET1 ratio remains solid at 10.4% and the total Basel III ratio reaches 17.0% at the end of March 2024. Risk-weighted assets (RWA) increased 5.5% since March 31, 2023 and 2.4% QoQ⁶. We are actively seeking to reduce our market risk-weighted assets through netting and novation of our derivatives portfolio, resulting in a 3.0% YoY decrease.

At the same time, core capital increased 4.8% since March 31, 2023 and decreased 4.3% QoQ primarily due to the increase in the provision for dividends related to the proposal by the Board for the distribution of 70% of the 2023 net income attributable to shareholders, which was approved in the Shareholders' Meeting in April 2024.

Loan growth led by mortgages and commercial lending
Total loans increased 1.1% QoQ and 5.5% compared to March 31, 2023, driven mainly by mortgage loans and commercial loans.

Approximately 58% of our portfolio is indexed to the UF⁷, mostly mortgage loans and around 36% of commercial loans. Regarding loans in foreign currency, around 23% of commercial loans are denominated in foreign currency, mainly in US dollars. These effects together with increasing demand due to the slightly more positive evolution of the economy in recent months led to a growth of 4.8% YoY and 1.5% QoQ in commercial loans.

Mortgages continue to grow above inflation, reaching growth of 7.7% YoY and 1.1% QoQ as clients adjusted to the conditions of market. Consumer loans increased 0.7% QoQ and 5.5% from March 31, 2023. After periods of contraction to the high liquidity of Chilean households in recent quarters we have seen an acceleration of credit card loans, mainly related to the increased use of cards.