Banco Santander Chile

F:BSA

Profitability: Santander Chile reported a very strong quarter, with net income attributable to shareholders of over CLP 382.6 billion, up 40% both quarter over quarter and year over year, helped by high inflation and solid execution.

Outlook: Management raised full-year 2026 expectations for return on average equity to above 24% and NIM to around 4.1%, while keeping loan growth in the mid-single digits.

Macro: The bank described Chile’s economy as weaker than expected, with growth now forecast at close to 1% in 2026, though the outlook for 2027 is more constructive.

Regulation: Management highlighted the new reconstruction bill, mortgage subsidy expansion and possible capital rule changes as important positives for lending and capital efficiency over time.

Loan growth: Credit demand improved in mortgages, commercial loans and auto lending, but management said 2026 loan growth will likely land in the lower part of the mid-single-digit range.

Credit quality: Asset quality remained manageable, with cost of risk at 1.38% year to date and management expecting it to stay around 1.35% to 1.4% by year-end.

Fees: Payment fees in Getnet came under pressure from stronger competition and lower margins, though management expects some recovery in the second half of the year.