Banco Santander-Chile (BSANTANDER) Q1 2025 earnings summary

Executive summary

• Net profit reached CLP 278 billion in 1Q25, up 131% year-over-year, with ROE/ROAE at 25.6–25.7% and efficiency ratio at 35%.

• Digital transformation advanced, with over 2.3 million digital clients and 4.3 million total clients, 60% active users, and Net Promoter Score of 57.

• Strong growth in fees (16.8–17%) and financial transactions (40%) year-over-year, with mutual funds up 20%.

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

• Migrated all core banking systems to the cloud, completing the Gravity project.

Financial highlights

• Net interest income increased 41.7–42% YoY, with NIM at 4.1%, supported by balance sheet structure and high inflation.

• Dividend payout of 70% of 2024 profits at CLP 3.19 per share, yielding 5.4%.

• Non-interest income grew 23.4% YoY, with card fees up 37.6%.

• Retail loans drove growth, with consumer loans up 4% YoY and auto loans up 13.6% YoY.

• Efficiency ratio improved to 35.0% in 1Q25 from 47.4% in 1Q24, best among peers.

Outlook and guidance

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

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

• Cost of risk projected at ~1.3%, improving in the second half.

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