BSAC · Banco Santander-Chile

Banco Santander Chile delivered solid Q1 2026 results with net income of Ch$273 billion, reflecting a 7.0% increase from 4Q25 driven by higher financial transaction and fee income plus lower other expenses, despite a weaker net interest margin from lower inflation (UF variation 0.3% vs. 1.3% prior year). Year-over-year, net income dipped 1.7% due to this inflation impact on readjustment income, offset by 4.5% growth in net fees from customer expansion and product usage, 19.7% rise in net financial results, and 6.7% reduction in operating expenses after non-recurring Project Gravity costs in 2025. Efficiency improved to a best-in-class 32.5% (from 35.0% YoY), with fees now covering 68.9% of structural expenses. ROAE of 23.0% remains strong, supported by disciplined balance sheet management. Consumer loans grew 4.2% YoY, led by 5.1% in credit cards, while customer funds expanded 4.4% YoY amid shifts to mutual funds. Capital position is robust with CET1 at 10.9% and BIS at 16.4%. Shareholder approval for 60% 2025 profit payout as Ch$3.35/share dividend (4.5% yield) underscores commitment to returns. Customer base hit 4.76 million (+9.7% YoY), with market share leadership in loans (16.5%) and strong digital adoption.