Banco Santander-Chile Announces Third Quarter 2025 Earnings

Rhea-AI Summary

Banco Santander Chile (NYSE: BSAC) reported results for the nine months ended September 30, 2025 and 3Q25 showing broad improvement across profitability, margins and capital.

Key figures: net income $798,000 million (37.3% YoY; $4.23 per share), ROAE 24.0% (9M25 vs 18.2% in 9M24), NII +16.6% with NIM 4.0%, operating income +14.8% YoY, and efficiency ratio improved to 35.9%. Capital metrics: CET1 10.8% and BIS ratio 16.7%.

Customer base reached ~4.6 million (≈2.3 million digital), market share in checking accounts 22.1%, and recurrence of commissions rose to 62.1%. Total assets were $68,240,207 million, gross loans $40,988,278 million, deposits $29,356,420 million, and shareholders' equity $4,592,379 million. The bank provided for a 60% dividend payout on 2025 earnings to date.

Positive

• Net income +37.3% YoY (9M25 net income $798,000 million)
• ROAE 24.0% in 9M25 vs 18.2% in 9M24
• NII +16.6% and NIM improved to 4.0% (9M25)
• Operating income +14.8% YoY (9M25)
• Efficiency ratio 35.9% (down from 40.0%, ~410 bps improvement)
• Solid capital: CET1 10.8% and BIS ratio 16.7%

Negative

• Dividend payout provision 60% of 2025 earnings reduces distributable capital
• Total operating expenses increased 3.1% in 9M25 due to technology and branch restructuring costs

Insights

Banking financial analyst

Strong 9M25 results: higher ROAE, improved NIM and revenue growth support a constructive capital and profitability picture.

Banco Santander Chile shows clear earnings leverage: net income of $798 billion for the nine months to September 30, 2025 and a 9M25 ROAE of 24.0% reflect materially higher operating income and net interest income. The bank reports a recovered NIM of 4.0% driven by a lower funding cost, and net commissions rose 8.0%, supporting recurring fee income and a recurrence ratio of 62.1%. Efficiency improved to 35.9%, so core profitability gains appear to come from both top-line mix and expense control.

Key dependencies and risks include capital and liquidity metrics and execution of digital and branch transformation. The CET1 ratio of 10.8% and overall Basel III ratio of 16.7% are stated as solid, but the report also reserves a dividend payout provision of 60% of 2025 earnings so capital consumption and regulatory buffers deserve monitoring. Technology and branch restructuring costs drove some operating expense increases, so margin sustainability depends on realizing cost efficiencies from that transformation.

Watchables over the next quarters: quarterly NIM and funding-cost trends to confirm the stated recovery, quarterly net commission recurrence to ensure stability above the reported 62.1%, and capital actions tied to the 60% dividend provision. Also monitor asset quality and loan growth metrics against the reported $40,988,278 million in gross loans and deposit trends around $29,356,420 million to assess durability of this profitability through Q4 2025 and into 2026.

SANTIAGO, Chile, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its results¹ for the nine-month period ended September 30, 2025, and third quarter 2025 (3Q25).

Solid financial performance with a ROAE² of 24.0% in 9M25³

As of September 30, 2025, the Bank's net income attributable to shareholders totaled $798 billion ($4.23 per share and $1.76 per ADR), representing a 37.3% increase YoY⁴, with an ROAE of 24.0% in 9M25 compared to a ROAE of 18.2% in 9M24⁵. The increase in results is explained by growth in the Bank's main revenue lines. Operating income increased 14.8% YoY, driven by a better interest and readjustment margin and higher fees and results from financial transactions.

Strong recovery of NIM⁶, reaching 4.0% in 9M25

Net interest income and readjustments (NII) accrued as of September 30, 2025, increased 16.6% compared to the same period in 2024. This increase in NII was due to higher net interest income due to the impact of a lower monetary policy rate on our funding cost, which fell from 4.8% to 3.8% in 9M25. As a result, the NIM improved from 3.4% in 9M24 to 4.0% in 9M25.

The customer base continues to expand, with a 8.7% YoY increase in total customers..

Our strategy of strengthening digital products has led to continued growth in our customer base, reaching approximately 4.6 million customers, of which nearly 2.3 million are digital customers (87% of our active customers).

The Bank's market share in checking accounts remains strong at 22.1% as of August 2025, driven by increased customer demand for US dollar checking accounts, as customers can open this type of account digitally through our platform in a few easy steps. This also demonstrates the success of Getnet's strategy to encourage cross-selling of other products, such as checking accounts, to SMEs

Net commissions increased by 8.0% in 9M25, reaching recurrence levels⁷ of 62.1%.

Net commissions increased 8.0% in the nine months ended September 30, 2025, compared to the same period in 2024, driven by increased customer numbers and greater product usage. As a result, the recurrence ratio (total net commissions divided by structural support expenses) increased from 60.0% as of September 2024 to 62.1% as of September 2025, demonstrating that more than half of the Bank's expenses are funded by commissions generated by our customers.

Best in Class efficiency⁸ of 35.9% in 9M25.

The Bank's efficiency ratio reached 35.9% as of September 30, 2025, better than the 40.0% recorded in the same period last year. Total operating expenses (which include other expenses) increased 3.1% in 9M25 compared to 9M24, driven by administrative expenses primarily related to higher technology expenses in the first quarter, as well as other expenses related to the restructuring of our branch network and the transformation to Work/Cafés.

Solid CET1 ratio⁹ of 10.8%.

Our CET1 ratio remains at a solid 10.8% at the end of September 2025, and the overall Basel III ratio stands at 16.7%. The Bank's capital includes a dividend payout provision for 60% of 2025 earnings to date.

Banco Santander Chile is one of the companies with the highest risk ratings in Latin America, with an A2 rating from Moody's, A- from Standard & Poor's, A+ from the Japan Credit Rating Agency, AA- from HR Ratings, and A from KBRA. All of our ratings have a stable outlook as of the date of this report.

As of September 30, 2025, the Bank had total assets of $68,240,207 million (US$73,258 million), total gross loans (including interbank loans) at amortized cost of $40,988,278 million (US$44,002 million), total deposits of $29,356,420 million (US$31,515 million), and shareholders' equity of $4,592,379 million (US$4,930 million). The BIS capital ratio was 16.7%, with a core capital ratio of 10.8%. As of September 30, 2025, Santander Chile employed 8,583 people and had 231 branches throughout Chile.

CONTACT INFORMATION
Cristian Vicuña
Chief Strategy Officer and Head of Investor Relations
Banco Santander Chile
Bandera 140, Floor 20
Santiago, Chile
Email: irelations@santander.cl Website: www.santander.cl

________________
¹ The information contained in this report is presented in accordance with Chilean Bank GAAP as defined by the Financial Markets Commission (FMC).
² Annualized net income attributable to owners of the Bank divided by the average equity attributable to equity holders.
³ The nine months ending September 2025.
⁴ Year over year.
⁵ The nine months ending September 30, 2024.
⁶ NIM: Net interest margin. Annualized net interest and readjustment income divided by average interest-earning assets.
⁷ Recurrence: net commissions divided by core support costs.
⁸ Operating expenses including impairment and other operating expenses/margin+fees+financial trx and other net operating income.
⁹ Common Equity Tier 1 divided by risk-weighted assets under Chilean regulation.

FAQ

What were Banco Santander Chile (BSAC) net income and ROAE for 9M25 announced on October 30, 2025?

BSAC reported net income $798,000 million for 9M25 and a ROAE of 24.0%.

How did Banco Santander Chile's net interest margin (NIM) change in 9M25 for BSAC?

NIM improved to 4.0% in 9M25, supported by NII growth of 16.6%.

What capital ratios did Banco Santander Chile report for September 30, 2025 (BSAC)?

BSAC reported a CET1 ratio of 10.8% and an overall BIS ratio of 16.7% as of Sept 30, 2025.

How did Banco Santander Chile (BSAC) efficiency and operating income perform in 9M25?

Efficiency improved to 35.9% (from 40.0%), and operating income rose 14.8% YoY in 9M25.

What customer and digital banking metrics did BSAC report for 9M25?

BSAC reported approximately 4.6 million customers, about 2.3 million digital customers, and a checking account market share of 22.1%.

Did Banco Santander Chile (BSAC) announce a dividend policy change on Oct 30, 2025?

The bank included a provision for a 60% payout of 2025 earnings to date in its capital calculation.