Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  SANTIAGO STOCK EXCHANGE  >  Banco Santander-Chile    STG   CLP1506A1070

News SummaryMost relevantAll newsSector news 

Banco Santander-Chile : Banco Santander Chile Announces First Quarter 2013 Earnings

share with twitter share with LinkedIn share with facebook
share via e-mail
04/26/2013 | 01:27am CEST

Santiago, Chile, April 25, 2013. Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its unaudited results for the first quarter 2013. These results are reported on a consolidated basis in accordance with Chilean GAAP.

Lower inflation and a higher tax rate reduces profitability in 1Q13

In 1Q13, Net income attributable to shareholders totaled Ch$80,879 million (Ch$0.43 per share and US$0.36/ADR). Compared to 4Q12 (from now on QoQ), net income decreased 28.9% and 31.7% compared to 1Q13 (from now on YoY). During the quarter, the lower inflation temporarily reduced net interest income and profitability. The higher statutory tax rate also lowered profitability.

In 1Q13, net interest income decreased 12.9% QoQ and 7.4% YoY. The net interest margin (NIM) in 1Q13 reached 4.7% compared to 5.5% in 4Q12 and 5.3% in 1Q12. The lower net interest margin income in the quarter was mainly due to the quarterly fluctuations of inflation. In 1Q13, the variation of the Unidad de Fomento (an inflation indexed currency unit), was 0.13% compared to 1.11% in 4Q12 and 1.07% in 1Q12. It is important to point out that the Bank has more assets than liabilities linked to inflation and, as a result, margins have a positive sensitivity to variations in inflation. Therefore, the QoQ decline in inflation was an important factor that explains the reduction in net interest income and profitability in the quarter.

Loan growth accelerating in segments the Bank has targeted for growth

In 1Q13, total loans increased 1.2% QoQ and 7.4% YoY. In the quarter, loan growth continued to accelerate in the markets the Bank is currently targeting: high-income individuals, SMEs and middle market of companies. Loans in these combined markets increased 3.1% QoQ and 11.4% YoY. Loans to high-income individuals increased 2.9% QoQ. Lending to SMEs (defined as companies that sell less than Ch$1,200 million per year) expanded 1.4% QoQ and 9.8% YoY, reflecting the Bank's consistent focus on this segment. In the quarter, the Bank also focused its loan growth in the middle-market companies segment (companies with annual sales between Ch$1,200 million and Ch$10,000 million per year), which increased 4.4% QoQ and 14.7% YoY.

Solid growth of core deposits

Customer funds (deposits + mutual funds) increased 2.6% QoQ and 5.1% YoY. Core deposits (demand and time deposits from our retail and corporate clients) expanded 12.4% YoY. Core deposits now represent 83% of the Bank's total deposit base. This should help support net interest margins in 2013.

Asset quality stabilizing in consumer loans

Net provision for loan losses in the quarter totaled Ch$92,858 million an increase of 2.7% QoQ and 18.6% YoY. Net provision expense in consumer loans, which represent 63% of total provision expense, decreased 1.0% QoQ and 3.8% YoY. This reflects the different measure carried out by the Bank to improve credit risk. This includes focus loan growth in the higher end of the consumer market, tightening admissions policies, improving the collections process and updating the consumer provisioning models (performed in 3Q12). The measures mentioned above have gradually resulting in a stabilization of asset quality in consumer lending. Consumer NPLs decreased 2.7% QoQ. The coverage of consumer NPLS reached 226.4% in 1Q13 compared to 224.0% in 4Q12. At the same time, the amount of impaired consumer loans (consumer NPLS+ renegotiated consumer loans) has evolved favorably. This is a leading indicator for the evolution of future charge-offs. The improved collection efforts have also led to an important rise in loan loss recoveries, especially in consumer lending. Total loan loss recoveries increased 113.3% YoY. In this same period, consumer loan loss recoveries increased 146.3% YoY.  

Cost growth moderates as key projects advance

Operating expenses in 1Q13 decreased 3.9% QoQ and increased 7.7% YoY. The efficiency ratio reached 41.8% in 1Q13. Administrative expenses increased 9.0% YoY as the Bank continued with its Transformation Projects aimed at enhancing productivity in retail banking. Going forward, though, administrative expenses should grow at a slower pace as many of these projects are finalizing. The 3.1% YoY increase in personnel expenses in 1Q13 reflects the stable evolution of the Bank's headcount. Personnel expenses should experience moderate growth in the rest of the year as headcount levels should not grow significantly.  

Core capital ratio reached 10.9%. Dividend yield of 3.8%

Shareholders' equity totaled Ch$2,194,025 million (US$4.6 billion) as of March 31, 2013. Core capital reached 10.9% and the Bank's BIS ratio reached 13.9% at the same date. The Bank's Board will also submit for shareholder approval on April 29, 2013 its annual dividend equivalent to 60% of 2012 net income (Ch$1.24/share) equivalent to a dividend yield of 3.8% on the day before the ex-dividend date in Chile. ROAE in the quarter reached 15.0%.


Robert Moreno

Manager, Investor Relations Department

Banco Santander Chile

Bandera 140 Piso 19

Santiago, Chile

Tel: (562) 2320-8284

Fax: (562) 671-6554

On January 1, 2013 the Bank began to apply the modifications to IAC 19 relating to Employee Pension Benefits. This change was applied retroactively to 2012 figures which resulted in lower assets and liabilities of Ch$786 million and a higher net income of Ch$315 million all charged to 4Q12 figures in this report.


distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
10/27 BANCO SANTANDER CHILE : Announces Third Quarter 2016 Earnings
10/25 BANCO SANTANDER CHILE : Todays Top Gainers in the Market Banco Santander-Chile f..
10/22 BANCO SANTANDER CHILE : from Money Center Banks Todays Top Gains
10/19 BANCO SANTANDER-CHILE : Announces Third Quarter 2016 Analyst and Investor Webcas..
10/13 BNY Mellon Appointed as Depositary Bank by Banco Santander S.A
09/23 LARGE CAP MONEY CENTER BANKS : Banco Santander-Chile
09/22 BANCO SANTANDER CHILE : Todays Top Gainers in the Market Banco Santander-Chile f..
09/14 BANCO SANTANDER CHILE : Announces Second Quarter 2016 Earnings
09/01 A LOOK AT A HIGH MARKET CAP STOCK : Banco Santander-Chile, BSAC
08/26 LEADING STOCKS IN TODAYS MARKET : Banco Santander-Chile
More news
Sector news : Banks - NEC
01:15p DEUTSCHE BANK : UK funds dump bonds on fears multi-decade bull run is ending - R..
10:51a Bond trading lifts BNP Paribas to exceed profit forecasts
10:31a ROYAL BANK OF SCOTLAND : Costs of misdeeds and revamp take toll on RBS
09:41a DANSKE BANK A/S : Cost-focused Danske Bank hikes outlook after strong quarter
06:05aDJJapan's Nikkei a Bright Spot in Asian Markets
More sector news : Banks - NEC
News from SeekingAlpha
10/27 Banco Santander-Chile EPS in-line
10/26 Notable earnings after Thursday?s close
07/30 Banco Santander-Chile's (BSAC) Q2 2016 Results - Earnings Call Transcript
07/29 Banco Santander-Chile 2016 Q2 - Results - Earnings Call Slides
07/29 Banco Santander-Chile reports Q2 results
Financials ( CLP)
Sales 2016 1 716 528 M
EBIT 2016 596 506 M
Net income 2016 494 966 M
Debt 2016 -
Yield 2016 4,53%
P/E ratio 2016 13,85
P/E ratio 2017 12,50
Capi. / Sales 2016 3,96x
Capi. / Sales 2017 3,65x
Capitalization 6 797 252 M
More Financials
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 10
Average target price 36,3  CLP
Spread / Average Target 0,69%
Consensus details
EPS Revisions
More Estimates Revisions
Claudio Melandri Hinojosa Chief Executive Officer
Vittorio Corbo Lioi Chairman
Emiliano Muratore Raccio Chief Financial Officer
Roberto Méndez Torres Second Vice Chairman
Mauricio Larraín Garcés Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.4.85%250 058
WELLS FARGO & CO-14.62%234 164
More Results