Banco Santander-Chile Reports Strong Third Quarter 2026 Results, Driven by Continued Customer Growth, Higher Profitability and Stable Capital Levels

Quarterly earnings declined despite nine-month profit growth, while customer funds and lending expanded from the previous quarter.

Rhea-AI Summary

Banco Santander Chile (BSAC) reported nine-month net income attributable to owners of $893 billion, reflecting growth over the prior-year period. Earnings rose 11.9% year over year, with annualized return on average equity of 24.5%, versus 24.0%. Net interest and inflation-linked readjustment income increased 7.0%, while operating expenses fell 4.2%.

Third-quarter net income was $237 billion, down 38.0% sequentially and 4.2% year over year. The bank attributed the sequential decline primarily to lower inflation-linked income, lower fees and higher provisions. Quarterly customer funds grew 3.7% and loans rose 1.8%. Customers increased 7.5% year over year to over 4.9 million. The common equity Tier 1 capital ratio remained stable at 10.9%, with total capital adequacy of 16.3%. The bank increased its provision for dividends from 60% to 70% of 2026 profits; this is not an announced dividend payment.

19 points · 0 major

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0 major · 6 points

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Positive

• Moderate pointNine-month net income rose 11.9% year over year to $893 billion; return on average equity increased to 24.5% from 24.0%.
• Moderate pointNine-month net interest and readjustment income increased 7.0% year over year.
• Moderate pointNine-month net interest margin increased to 4.1% from 4.0% a year earlier.
• Moderate pointNine-month operating expenses fell 4.2% year over year, primarily through lower administrative costs.
• Moderate pointCustomer funds grew 3.7% quarter over quarter in the third quarter.
• Moderate pointMutual funds grew 15.5% year to date and 5.5% quarter over quarter.
• Moderate pointLoans at amortized cost grew 3.0% since December 31, 2025 and 1.8% sequentially.
• Moderate pointCustomer numbers increased 7.5% year over year to over 4.9 million, including 2.7 million active customers.

11 minor points

• Minor pointNine-month inflation-linked readjustment income grew 21.8% year over year.
• Minor pointNine-month efficiency ratio improved to 33.0% from 35.9% a year earlier.
• Minor pointCost-to-asset ratio decreased to 1.4% in the first nine months of 2026.
• Minor pointThird-quarter operating expenses fell 1.4% sequentially and 4.0% year over year.
• Minor pointThird-quarter deposits increased 2.8% sequentially, with time deposits growing 5.6%.
• Minor pointDemand deposits increased 5.5% from September 2025.
• Minor pointCommercial loans increased 5.5% since December 31, 2025 and 4.0% quarter over quarter.
• Minor pointSantander Consumer auto financing grew 6.3% since December 31, 2025 and 2.1% sequentially.
• Minor pointMutual fund brokerage and insurance fee income recorded 13% year-over-year growth.
• Minor pointTotal equity increased 5.7% from December 31, 2025 to $5,114,925 million.
• Minor pointDividend provision increased from 60% to 70% of 2026 profits, without announcing a payment.

Negative

• Moderate pointThird-quarter net income fell to $237 billion, down 38.0% sequentially and 4.2% year over year.
• Moderate pointThird-quarter net interest and readjustment income decreased 18.1% quarter over quarter.
• Moderate pointThird-quarter net interest margin fell to 3.8% from 4.7% sequentially, matching 3Q25.
• Minor pointThird-quarter readjustment income contracted 64.6% sequentially as the inflation-linked UF measure rose less.
• Minor pointThird-quarter earnings also faced lower fee income and higher provisions.
• Minor pointDemand deposits declined 0.8% quarter over quarter.

News Explained

At the April 2026 shareholders’ meeting, Banco Santander Chile agreed to distribute 60% of 2025 profits as dividends, equal to $3.35 per share; this is an agreed distribution of prior-year profits, distinct from the 70% provision against 2026 profits.

Key Figures

9M26 net income attributable to owners: $893 billion Net income growth: 11.9% YoY 3Q26 net income attributable to owners: $237 billion +5 more

9M26 net income attributable to owners

$893 billion

Nine months ended September 30, 2026

Net income growth

11.9% YoY

9M26 versus 9M25

3Q26 net income attributable to owners

$237 billion

Third quarter 2026

Quarterly net income change

-38.0% QoQ

3Q26 versus 2Q26

3Q26 ROAE

19.1%

Third quarter 2026

Dividend provision

70% of 2026 profits

Provision increased from 60%

CET1 ratio

10.9%

As of September 2026

Efficiency ratio

33.0%

9M26, versus 35.9% in 9M25

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Earnings report

   24h Move

   +0.8%

   2Q26 net income rose 40.0% QoQ and ROAE reached 31.5%, with CET1 at 11.1%.

2. Oct 30

   Earnings report

   24h Move

   +1.8%

   9M25 net income rose 37.3% YoY, ROAE reached 24.0%, and NIM was 4.0%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

roae, cet1 ratio, nim

3 terms

roae financial

"a ROAE of 24.5% in 3Q26 and profit growth of 11.9% YoY."

ROAE stands for Return on Average Equity, a profitability ratio that shows how much net income a company generates for its owners relative to the average amount of shareholder equity invested over a period. It’s like measuring the interest rate a business pays its owners on the capital they’ve left in the company, with the ‘average’ smoothing out swings in equity during the year. Investors use ROAE to compare how efficiently different companies turn owner capital into profits and to assess management’s ability to deliver returns over time.

cet1 ratio financial

"stable CET1 ratio of 10.9% with a capital adequacy ratio of 16.3%"

CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.

nim financial

"Net interest income and readjustments increased 7.0% YoY with a NIM of 4.1%"

NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SANTIAGO, Chile, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its results¹ for the nine-month period ended September 30, 2026, and third quarter 2026 (3Q26).

Solid financial performance with a ROAE² of 24.5% in 3Q26³ and profit growth of 11.9% YoY⁴.

As of September 30, 2026, net income attributable to the Bank's owners totaled $893 billion (US$4.74 per share and US$1.94 per ADR). Compared to the same period of the previous year, net income increased by 11.9%, reaching a ROAE of 24.5% in 9M26⁵ versus 24.0% in 9M25⁶. This is mainly due to higher net interest income resulting from higher inflation in the readjustment income line, as the UF variation was 3.3% in 9M26 compared to 2.8% in 9M25. Higher results from financial transactions and lower operating expenses also contributed to this improvement.

Furthermore, at the shareholders' meeting in April 2026, it was agreed to distribute dividends of 60% of the profits from the 2025 fiscal year. This is a dividend of $3.35 per share and a yield of 4.5%.

In the third quarter of 2026, net income attributable to the Bank's owners totaled $237 billion ($1.30 per share and US$0.50 per ADR). Compared to the previous quarter (2Q26), it decreased 38.0% QoQ⁷ and 4.2% compared to 3Q25, primarily due to lower net income from readjustments in a quarter with lower inflation (0.6% in 3Q26⁸ vs. 2.5% in 2Q26 and 0.6% in 3Q25), as well as lower fee income and higher provisions during the quarter. Despite these factors, ROAE reached 19.1% in 3Q26.

Total equity increased 5.7% during the year, including a dividend distribution provision of 70%.

Total equity reached $5,114,925 million as of September 30, 2026, a 5.7% increase compared to December 31, 2025. This growth is primarily due to reserves resulting from higher profits in fiscal year 2025. Additionally, as of September 2026, the Bank increased its dividend provision from 60% to 70% of 2026 profits. The Bank maintains a stable CET1 ratio⁹ of 10.9% with a capital adequacy ratio¹⁰ of 16.3% as of September 2026.

Customer funds grow 3.7% in the quarter.

The Bank's total deposits increased by 9.0% as of December 31, 2025, driven by an 18.1% growth in time deposits. This was partially offset by a slight contraction in demand deposits, associated with the usual seasonality compared to the previous year-end; however, demand deposits have increased by 5.5% compared to September 2025. We have also seen increased demand for mutual funds, which grew by 15.5% YTD¹¹. Overall, client funds have grown by 11.1% as of December 31, 2025.

In the third quarter (3Q26), total deposits increased by 2.8% QoQ. With lower expectations of cuts to the Monetary Policy Rate, time deposits grew by 5.6%, while demand deposits decreased slightly by 0.8% QoQ. Meanwhile, mutual funds increased by 5.5% QoQ. Overall, customer funds grew by 3.7% QoQ.

Total loans grew 1.8% QoQ, driven by higher demand for loans from large companies

Total loans at amortized cost increased by 3.0% compared to December 31, 2025 and by 1.8% QoQ, driven by growth in commercial, mortgage, and auto loans.

During the second and third quarters, incipient signs of recovery in commercial loans began to appear, with growth of 5.5% since December 31, 2025, and 4.0% QoQ. This trend was primarily driven by increased demand for financing for foreign trade loans and the depreciation of the Chilean peso against the US dollar since December 2025. Secondly, it was also influenced by improved growth in non-trade-export commercial loans to large companies.

Within consumer loans is the auto financing business, Santander Consumer, which has maintained positive trends with an increase of 6.3% since December 31, 2025 and an increase of 2.1% QoQ thanks to greater commercial agreements with car dealerships.

Best-in-Class in the industry, with an efficiency¹² of 33.0% in 9M26 with operating expenses contracting YoY.

The Bank's efficiency ratio reached 33.0% as of September 30, 2026, an improvement over the 35.9% recorded in the same period of the previous year, and the efficiency ratio stood at 36.1% in 3Q26. In line with this, the cost-to-asset ratio decreased to 1.4% in the first nine months of 2026.

Operating expenses (which include other expenses) decreased by 4.2% compared to 9M25, primarily due to lower administrative costs. It's worth noting that during the first quarter of 2025, the Bank completed a significant milestone with Project Gravity, which involved migrating from the mainframe to the cloud. During that period, both systems operated in parallel, resulting in higher costs. Furthermore, the transition to the new cloud infrastructure generated higher amortization and depreciation expenses associated with legacy systems.

During 3Q26, operating expenses decreased by 1.4% compared to 2Q26 and by 4.0% compared to 3Q25, explained by lower other operating expenses in the quarter.

Net interest income and readjustments increased 7.0% YoY with a NIM¹³ of 4.1% in 9M26.

Net interest and readjustment income accumulated to September 30, 2026 increased by 7.0% compared to the same period in 2025. This growth was driven by a 21.8% increase in readjustment income, favored by a UF variation of 3.3% in 9M26 compared to 2.8% in the same period in 2025.

In 3Q26, total net interest and readjustment income decreased by 18.1% compared to 2Q26, mainly due to a sharp contraction in readjustment income of 64.6% in 3Q26, where the variation of the UF decreased from 2.5% in 2Q26 to 0.6% in 3Q26. Meanwhile, interest income in the quarter remained stable compared to the previous quarter.

As a result of these inflationary dynamics, the net interest margin (NIM) reached 3.8% in 3Q25, 4.7% in 2Q26 and 3.8% in 3Q26. In cumulative terms, the NIM increased from 4.0% in 9M25 to 4.1% in 9M26.

Customer base expansion continues, with total customers increasing by 7.5% YoY.

The strategy of strengthening digital products has led to continued growth in our customer base, reaching over 4.9 million customers, of which 2.7 million are active. The Bank's market share in current accounts remained strong, reaching 20.4% as of July 2026. Likewise, the increased use of digital platforms continued to drive fee income, with YoY growth of 13% in mutual fund brokerage and insurance. As a result, the recurrence ratio (total net fees divided by structural support expenses) reached 60.8% YTD as of September 2026, demonstrating that almost two-thirds of the Bank's expenses are financed by fees generated by customers.

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, and AA- from HR Ratings. All ratings have a stable outlook as of the date of this report.

As of September 30, 2026, the Bank has total assets of CLP 78,140,567 million (US$ 84,835 million), total gross loans (including interbank loans) at amortized cost of CLP 42,153,512 million (US$ 45,765 million), total deposits of CLP 33,308,102 million (US$ 36,152 million), and shareholders' equity of CLP 4,943,285 million (US$ 5,367 million). The capital adequacy ratio is 16.3%, with a core capital ratio of 10.9%. As of September 30, 2026, Santander Chile employs 8,188 people and has 219 branches throughout Chile.

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

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1 The information contained in this report is presented in accordance with Chilean Bank GAAP as defined by the Financial Markets Commission (FMC).
2 Net profit attributable to shareholders of the Bank annualized divided by the average equity attributable to shareholders.
3 Third quarter of 2026.
4 Year-on-year.
5 The nine months ending on September 30, 2026.
6 The nine months ending on September 30, 2025.
7 Quarter vs. quarter. (2Q26 vs 1Q26).
8 Third quarter of 2025.
9 Common Equity Tier 1 divided by risk-weighted assets, under Chilean regulation.
10 Tier 1 + Tier 2 capital divided by risk-weighted assets, under Chilean regulation.
11 Year-to-date
12 Operating expenses including impairment and other operating expenses/ margin+commissions+ financial transactions and other net operating income.
13 NIM: Net interest margin. Annualized accumulative net interest income and readjustments divided by the average of interest-earning assets.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Banco Santander Chile earn in the first nine months of 2026?

Banco Santander Chile earned $893 billion in net income attributable to owners, up 11.9% from the same period of 2025. Annualized return on average equity reached 24.5%, compared with 24.0% a year earlier.

Why did Banco Santander Chile's third-quarter 2026 earnings decline?

The bank attributed the sequential earnings decline primarily to lower inflation-linked readjustment income, lower fee income and higher provisions. Third-quarter net income was $237 billion, down 38.0% from the preceding quarter and 4.2% from the third quarter of 2025.

How did Banco Santander Chile's cloud migration affect its expense comparison?

The first-quarter 2025 cloud migration created a higher prior-year cost base because the mainframe and cloud systems operated in parallel. The transition also generated higher amortization and depreciation expenses associated with legacy systems. Nine-month 2026 operating expenses declined primarily because of lower administrative costs.