Banco Santander-Chile Announces First Quarter 2024 Earnings - Seite 2

Total deposits increase 2.5% QoQ driven by time deposits
The Bank's total deposits increased 2.5% QoQ and 8.4% since March 31, 2023. The increase was driven by time deposits which increased 18.5% since March 31, 2023, mainly in the CIB segment, because high rates led our clients to switch to more attractive deposits explaining the decrease of 2.2% since March 31, 2023 and 0.2% QoQ of demand deposits. It is important to note that the decrease in demand deposits is less pronounced than in previous quarters, while the rise in time deposits is also slowing down, as clients respond to lower interest rates.

Our clients' investments through mutual funds brokered by the Bank also grew in the quarter, reaching an increase of 12.7% QoQ and 35.5% since March 31, 2023.

Bonds increased 3.7% in the quarter and 11.4% since March 31, 2023. During 2024, the Bank has placed bonds for UF 5,132,000, CLP 55,050 million and CHF 225 million, taking advantage of attractive opportunities in the different fixed income markets at a national and international level.

The Bank's Liquidity Coverage Ratio (LCR) as of March 31, 2024, was 176.3% and the Bank's Net Stable Financing Ratio (NSFR), reached 101.6%, both well above the regulatory minimum established for this index.

Interest income continues its recovery path in 1Q24 in line with a lower MPR. Income from readjustments decreases due to lower UF variation in 1Q24.
Year to date net interest and readjustment income (NII) as of March 2024 increased 30.9% compared to the same period in 2023. This increase in NII was mainly due to higher interest income due to the effect of the lower monetary policy rate in our funding cost, which fell from 6.8% to 5.4% in 3M24.

The above is partially offset by lower income from readjustments which decreased 49.1% in 3M24 compared to the same period in 2023, given that the variation in the UF reached 0.8% in 3M24 compared to 1.3% in the same period in 2023.

With these two effects, the NIM⁸ increased from 2.2% in 3M23 to 2.7% in 3M24.

Net income from fees increases 10.1% in the quarter, with a recurrence ratio⁹ of 49%
Net commissions increased 10.1% QoQ due to the increase in clients and greater use of products such as mutual funds and insurance, where the Bank earns brokerage fees. With this, the recurrence ratio (total net commissions divided by total expenses) is 48.9% in 1Q24, demonstrating that almost half of the Bank's expenses are financed with commissions generated by our clients.