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Banco Santander-Chile announces first quarter 2022 -2022

SANTIAGO, Chile, April 29, 2022 (GLOBE NEWSWIRE) – Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) today announced its unaudited results.i for the three-month period ending March 31, 2022 and the first quarter of 2022 (1Q22).

Net income attributable to shareholders grows by 29.5% between years on 3M22, with 25.6% ROAE

Net income attributable to shareholders in 1F22 totaled Ch $ 235,743 million (Ch $ 1.25 per share and US $ 0.64 per ADR), an increase of 29.5% compared to 1F22 (hereinafter referred to as YoY) and 1.5% compared to 4F21 ( now TAT). The strong year-on-year performance was driven by a sharp increase in operating income of 8.4%, primarily from commissions, but net performance was partly offset by a smaller expansion in net interest income due to higher financing costs due to higher monetary policy rates in the country. quarter. The Bank’s net interest margin (NIM) on 1F22 was 3.7%, lower than NIM, 4.1% on 1F21 and 4.4% on 4F21. Provision fees for credit risk decreased by 18.4% between years and 40.8% QoQ as no additional contributions were entered in 1F22 and asset quality continued. With these results, the cost of borrowing at 1F22 reached 0.8%, compared to 1.0% at 1F21 and 1.3% at 4F21. In general, the credit quality of the Bank’s loan portfolio remained positive at 1Q22. The NPL ratio improved from 1.3% in 1F21 to 1.2% in 1F22, while the ratio of impaired portfolios continued to decline to 4.5% in 1F22 compared to 5.1% in 1F22. Similarly, and despite the fact that no new voluntary contributions were made in the first quarter of 22, the default insurance increased to 278.6%. Costs remained subdued, increasing by only 2.1% between years despite higher inflation and the efficiency ratio reached 37.8%. With this result, the Bank reached over 20% for the sixth consecutive quarter ROAE which reached 25.6% on 1F22.

Life and Superdigital powered by digital accounts.

Santander Life continues to be a major player in new customer growth due to the success of the Meritolife program for this product and the digital sign-up process for opening trading accounts. The total number of Vida customers in March 2022 increased by 59.7% between years and in the first quarter of 2022 Vida opened 76,553 current accounts and reached a total of 976,618 customers. Santander Life customers earn revenue quickly and have high NPS levels throughout the entry process. As of March 2022, Vida has already generated Ch $ 30 billion.

Superdigital continues its pace of customer acquisition with 28,753 new customers during the quarter, reaching a total of 292,474 customers. This prepaid digital account is an attractive option for customers with little access to banking ecosystems, especially during a pandemic when many people could receive and manage their money from government initiatives through the pandemic. In addition, Superdigital has important alliances with companies such as Uber and Cornershop, which attracts new customers. In January 2022, we signed a contract with Todos Conectadas, a forum for women entrepreneurs from Latin America and the Caribbean in collaboration with the United Nations, Mastercard and Microsoft. Superdigital will be the account that enables these women to receive payments and have access to financial education courses and benefits, free of charge.

The current account’s market share increased by 140 basis points to 28.9% and the total number of customers reached 4,138,188 customers.

The Bank’s market share in checking accounts continues to increase significantly. According to the latest information available, as of January 2022, the net opening of current accounts accounts for more than 38.7% of the total number of opened accounts in the rest of the banking system in the last twelve months and reached a market share of 28.9%. in current accounts. These figures do not include Superdigital as they are classified as debit cards. During the quarter, total customers continued to grow strongly, increasing by 1.6% QoQ and 14.4% between years. This growth reflects the success of our digital strategy.

Getnet’s success continues.

Getnet’s entry into the takeover market in Chile continues to yield good results. Customer reception has been high with more than 88,000 POS terminals installed for 73,800 customers, of which 90% are small and medium-sized companies. Getnet has reached $ 300 billion in monthly sales through its POS network. Getnet returned ISK 3.4 billion in fees during the quarter.

Introducing Prospera and Cuenta Pyme Life, our initiative to increase banking among SMEs and micro-entrepreneurs.

In 2022, we launched the Prospera Cuenta Pyme Life, both an initiative to promote the banking of small and medium-sized enterprises and to support micro-entrepreneurs. Prospera is a simple checking account to open with no minimum sales options for people that allows them to execute trades for their trades easily. For one payment of ISK 19,990, they receive a POS mobile phone that enables them to receive sales deposits on the same day and receive payments directly to their phone. SME Life account is for people who have an open business. In Chile, a government platform is designed so that anyone can open a business in one day, without the inconvenience or tedious paperwork. These same companies that open fast and digitally also try to open an account in the same way, like SME Life Account, which is 100% digital. The first six months are free. Both options are unique in the market, focusing on micro-entrepreneurs who sell fast through checking account, debit account and Getnet. In the future, these customers will also have access to loans.

We continue to reopen and expand our workplaces.

In the last twelve months, we have opened 10 work cafés and six branches opened in the first quarter of this year. In addition, we have closed 20 standard branches, mainly Select branches, aimed at higher-income customers. We now have a total of 324 offices, 6.4% fewer than last year.

Total deposits increased by 2.8% between years.

During the quarter, the Central Bank continued to raise its monetary policy rate (MPR) from 4.0% to 7.0% at the end of March. We expect further Central Bank rate hikes in the coming months and we expect MPR to reach 8.5% in the second quarter of 2022. The Bank’s total deposits increased by 2.8% between years and decreased by 3.5% QoQ in 1T22. During the quarter, outstanding deposits increased by 7.5% between years, driven by an increase in individuals’ checking accounts and more business transactions. On the other hand, QoQ deposits decreased by 5.7% due to a rise in fixed deposit rates, which increased the attractiveness of fixed deposits, especially among individuals, small and medium-sized enterprises and the mid-market segment. On the other hand, unrestricted corporate deposits increased by 29.6% on QoQ, which reflects the Bank’s strength in the Treasury’s transactions with companies. Strong management of the bank’s funding base has enabled it to maintain a good level of liquidity. As of March 2022, the LCR Bank and NSFR were 146.4% and 113.2% respectively.

Growth in loans led by corporate and car loans.

Total loans increased by 6.8% between years and 0.6% on QoQ with strong demand for commercial loans and car loans. This was offset by a reduction in loans to small and medium-sized enterprises and other consumer goods. During the quarter, our SCIB share increased by 47.7% between years when the economy reopened and large companies sought financing with corporate loans, as the local credit market is still illiquid after withdrawals from investors, pension funds. Our mid-market segment is also showing signs of recovery, with 1.8% lending growth in the quarter driven by the commodities sector.

Lending to individuals increased by 9.7% between years and 1.9% between years. Consumer loans increased by 4.6% between years and 0.5% between years. This was driven by a 9.9% increase in QoQ in Santander Consumer, our subsidiary that sells car loans and accounts for approximately 16% of consumer loans. Other consumer loans contracted by 1.1% during the quarter and 1.6% between years, as demand for loans remained low following heavy government aid during the pandemic and withdrawals from pension funds. Mortgages increased by 11.7% between years and 2.0% between years. Demand for new mortgages has declined as inflation and interest rates have risen and the Bank continues to limit mortgages with a life longer than 20 years. On the other hand, 2.4% of UF’s inflation in the quarter also led to a positive change effect on mortgage loans, as most of these loans are in UF.1.

Metarður paid in April 2022. The core capital ratio went to 10.4% at the end of March 2022 and the total BIS III ratio was 16.8%.

The banks core capital ratio reached 10.4% at the end of March 2022 and in total BIS III system reached 16.8%. Due to our solid equity position, at the shareholders’ meeting held on April 27, 2022, a dividend of ISK 2.47 / share was distributed, 49.8% higher than last year’s dividend payments.

Banco Santander Chile is the largest bank in the Chile market in terms of loans and assets. As of March 31, 2022, the Bank had total assets of USD 78.4 billion, loans less contributions of USD 45.8 billion, deposits of USD 34.5 billion and equity of USD 4.9 billion. The BIS capital ratio on 31 March 2022 was 16.8%, with a core capital ratio of 10.4%. Banco Santander Chile is one of the companies with the highest risk rating in Latin America with an A1 rating from Moody’s, A- from Standard and Poor’s, A + from Japan Credit Rating Agency, AA- from HR Ratings and A from KBRA.

Roberto Moreno
Investor Relations
bank santander chile
Flag 140, floor 20
Santiago, Chile
Phone: (562) 2320-8284
Email: [email protected]

1 Unidad de Fomento (UF), unit indexed to inflation. UF is reassessed in monthly cycles. Each day of the period between the tenth day of the current month and the ninth day of the following month, the nominal value of the UF in pesos is indexed upwards (or downwards in the event of deflation) to reflect the relative amount of the change in the consumer price index in Chile in the last calendar month. One UF was equivalent to $ 29,394.77 as of March 31, 2021 and $ 28,597.46 as of March 31, 2020.

The information in this report has not been reviewed and is presented in accordance with the accounting policies of the Banco de Chile as defined by the Financial Markets Commission (CMF).

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