Banco Santander-Chile (BSANTANDER) Q1 2025 earnings summary

Executive summary

• Net profit reached CLP 278 billion in Q1 2025, up 131% year-over-year, with ROE/ROAE at 25.7% and efficiency ratio at 35.0%.

• Digital transformation advanced, with over 2.3 million digital clients and 4.3 million total clients; 88% of active clients are digital.

• Strong growth in fees (up to 17.1% YoY), financial transactions (40% YoY), and mutual funds (AUM up 20.1% YoY), driven by digital strategy.

• Dividend payout of 70% of 2024 profits approved (CLP 3.19 per share, 5.4% yield), distributed in April 2025.

• Recognized as best private bank in Chile by Euromoney; continued branch optimization and product simplification.

Financial highlights

• Net income for Q1 2025 was CLP 278 billion, a 131% increase YoY; NIM at 4.1%, up from 2.7% YoY.

• Non-interest income up 23.4% YoY; card fees grew 37.6% YoY; Getnet acquiring business expanded client base by 25% YoY.

• Retail loans drove growth (consumer loans up 4.0% YoY, auto loans up 13.6% YoY); commercial loans declined 3.8% YoY.

• Efficiency ratio improved to 35.0% in Q1 2025 from 47.4% in Q1 2024; operating expenses fell 1.7% YoY.

• Cost of risk at 1.36%, with NPLs showing early stabilization; NPL ratio at 2.9%–3.2%, coverage of NPLs at up to 115.5%.

Outlook and guidance

• 2025 ROE/ROAE target raised to above 21%, with mid-single digit loan growth and NIM around 4%.

• Non-NII growth revised to mid- to high-single digit; efficiency expected in the mid-30% range.

• Cost of risk projected at ~1.3% for 2025; asset quality expected to stabilize in H2 2025.

• Macro assumptions: GDP growth 2.1%, inflation 3.6%–3.7%, policy rate 4.5%–4.8%.

• CET1 ratio targeted around 11%; capital ratios above regulatory minimums.