The following is a summary of the Banco Santander-Chile (BSAC) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Banco Santander-Chile reported $1.3 billion in customer deposits and $100 million in consumer loans related to the Life segment, alongside $32 million in yearly fees.

• Predicted ROEs are aiming to reach about 20% in the second half of the year.

• The bank achieved total shareholder return of 35.8% in 2023 and a net income of CLP496 billion, down 39% YoY.

• The bank showed a quarter-by-quarter net income increase, with RoE reaching 16.6% in the final quarter of 2023.

• Bank registered a 34.7% YoY increase in operating segment net contribution due to lower interest rates and strategy across segments.

• Net Interest Margins are expected to strongly recover to reach between 3%-3.5% in 2024

• Cost of credit remained in line with guidance at 1.2% and non-net interest income sources showed significant growth.

• Operating expenses decreased by 5.6% YoY and a core equity ratio of 11.1% was reported at the end of Q4 2023.

Business Progress:

• Santander-Chile aims to expand their customer base to 4.5 million by 2026, maintaining high levels of customer satisfaction.

• Initiatives under the Chile First strategic pillar, including focus on sustainability and financial inclusion, are showing success.

• Green housing portfolio has grown to approximately CLP100 billion and the bank has issued green bonds worth approximately $50M.

• The bank has advanced in digital banking, attracting over 117,000 clients to their new account option and plans to implement the Gravity digital banking platform by 2024.

• The bank is set to spend $450 million from 2023 through 2026 on branch modernizations and tech initiatives.

• The bank sees loan growth and non-net interest income growth in 2024, and RoE is expected to reach normal levels of 15%-17%.

• The bank expects economic activity in Chile to grow around 2%, due to a less restrictive financial environment and increased labor market dynamism.

• The company received critical recognition for its sustainable practices being awarded Best Bank in Chile by The Banker and Euromoney.

More details: Banco Santander Chile IR

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