Banco Santander-Chile

Banco Santander-Chile reported net income attributable to shareholders of over CLP 382.6 billion in the second quarter, up 40% quarter on quarter and 40% year on year. Return on average equity was 31.5% for the quarter and 27.2% year to date. Total loans reached CLP 41.4 trillion, up 1.3% quarter on quarter and 1.2% year to date, while deposits reached CLP 32.4 trillion, up 4.5% quarter on quarter and 6% year to date; total customer funds were CLP 48.3 trillion, up 4% quarter on quarter and 7.1% year to date. First-half combined net income from interest and readjustments was CLP 1.11 trillion, up 7.4% year on year and 27% quarter on quarter, with quarterly NIM at 4.7% and year-to-date NIM at 4.3%. Cost of risk was 1.22% in the quarter and 1.38% year to date; NPLs were 3.4% of loans and impaired loans were 7.5% of loans. Capital remained strong, with a BIS ratio of 16.4% and CET1 of 11.1%. For 2026, management now expects loan growth to remain in the mid-single digits, NIM to be around 4.1%, noninterest income growth to be in the mid-single digits, efficiency to improve into the low 30s, cost of risk around 1.35%, and ROE above 24%.

Cristian Vicuna framed the quarter as evidence that the bank’s strategy is working: a digital bank with physical presence, focused on customer value, global platforms, and value creation. He emphasized that the franchise is becoming more diversified across retail, commercial, wealth, consumer, and payments, and said the model supports stable profitability through the cycle. His tone was confident but measured, repeatedly tying future growth to customer activity, better loan demand, and a more favorable regulatory environment.

Patricia Pallacan said the quarter reinforced the bank’s strength in profitability, disciplined cost management, and capital. She highlighted strong capital ratios, including a BIS ratio of 16.4% and CET1 of 11.1%, and noted that the proposed market risk regulation could reduce industry market risk RWAs by roughly 36%, which would translate into around 75 basis points of CET1 for Santander Chile if implemented. On taxes, management said the new tax reform should gradually bring the effective tax rate from the current low-teens area toward about 18% to 20% in a normalized scenario, but over a couple of years rather than immediately.

Analysts focused on three topics: the path of the effective tax rate under the new tax reform, what a normalized ROE should look like over time, and whether regulation could unlock faster bank growth. Management said the tax change is gradual and that a normalized effective tax rate should settle around 18% to 20%, while ROE in a normal cycle should be slightly above 20%, with years in the high teens to low 20s depending on macro conditions. On regulation, they pointed to constructive developments in the National Reconstruction Plan, mortgage support, market-risk RWA changes, and possible internal models, but stressed that implementation timing remains uncertain and some benefits will take 3 to 5 years.