Banco Santiago - BSAC STOCK NEWS

Banco Santander Chile (NYSE: BSAC) reported a net income of Ch$105,139 million for 3Q20, a 23.9% increase QoQ, despite adding Ch$30,000 million in provisions for potential credit quality impacts from COVID-19. Year-to-date, net income dropped 23.3% YoY to Ch$334,012 million. Non-interest bearing demand deposits surged 47% YoY, while total loans rose 9.3% YoY. The Bank's BIS ratio hit a 10-year high at 15.1%, prompting a proposal for a 3% dividend payout of retained earnings. However, non-interest income declined by 29% QoQ due to lower economic activity.

Santander-Chile's issuer credit rating has been confirmed at A by Standard & Poor's, with a negative outlook. The bank maintains a dominant position in Chile's commercial banking sector and shows strong profitability and asset quality metrics. Capitalization levels are aligned with its business strategy. The bank’s stability is expected to help it withstand challenging economic conditions. Additionally, Santander-Chile has actively promoted sustainable projects, enhancing its ESG profile.

Banco Santander Chile (NYSE: BSAC) reported a record-breaking 76,500 checking account openings in August 2020, primarily through its digital platform, Santander Life. This figure marks a 732% increase compared to August 2019 and surpasses the banking industry's total of 34,100 accounts opened in the first five months of the year. Santander's market share in new account openings has likely exceeded 80% in 2020, supported by the demand for fully digital banking solutions during the pandemic. The bank currently has 1.14 million total current accounts.

Banco Santander Chile's (NYSE: BSAC) Superdigital App has rapidly gained traction, acquiring over 100,000 clients in just five months since its April launch. The app aims to enhance financial inclusion for nearly 4 million unbanked individuals in Chile, providing a fully digital banking experience. Its robust month-on-month growth is attributed to a simple on-boarding process and the digital shift prompted by COVID-19. The app enables users to conduct various financial transactions, such as payments and transfers, enhancing access to financial services across the country.

Banco Santander Chile has launched a new digital debit card, allowing clients to shop online without needing a credit card. This initiative aims to address the surge in e-commerce, which has tripled since the COVID-19 pandemic. The digital card will be linked to existing debit accounts and offers immediate access to online payment features through the Santander app. Matías Sánchez, Head of the Commercial Bank division, highlighted this development as a significant technological advancement, enhancing safety and convenience for clients during increased online shopping.

Banco Santander Chile has been recognized once again among the top 100 companies in the Vigeo Eiris ranking for emerging markets, highlighting its commitment to environmental, social, and governance (ESG) factors. This marks the third consecutive year the bank has achieved this recognition. CEO Miguel Mata emphasized their dedication to responsible business operations in response to global challenges, including climate change. The 2020 ranking evaluated 843 companies from 32 sectors across 31 countries, reinforcing Santander's status as a leader in sustainability.

Banco Santander Chile (NYSE: BSAC) announced its unaudited results for the first half of 2020 and second quarter (2Q20). The net income attributable to shareholders dropped 41.1% QoQ and 50.4% YoY to Ch$84,859 million. Adjusted net income was Ch$106,759 million with a 12.0% ROAE. Total gross income rose 7.1% YoY. Total loans increased 13.5% YoY, while provisions for loan losses surged 150.3% YoY to enhance coverage ratios amid COVID-19 impacts. The bank maintained a strong efficiency ratio of 38.9% and solid capital ratios, with a core capital ratio of 10.0%.

Banco Santander Chile (NYSE: BSAC) invites participation in its conference call-webcast on July 30, 2020, at 11:00 AM (ET) to discuss the 2Q 2020 financial results. Chief Financial Officer Emiliano Muratore, Manager of Investor Relations Robert Moreno, and Chief Economist Claudio Soto will lead the discussion, followed by a Q&A session. The earnings report will be available before the market opens on the same day. The quiet period commences on July 15, 2020.

For access, view the webcast at:
https://edge.media-server.com/mmc/p/eumgn3rs