Banco Santander-Chile (BSANTANDER) Q2 2024 earnings summary

Executive summary

• Net income attributable to shareholders rose 28.6% year-over-year to CLP 337,976 million for 6M24, with quarterly net income up 81.1% from 1Q24 and ROE reaching 20.7% in 2Q24.

• Digital transformation advanced, with over 2.1 million digital clients, expansion of Work Café branches, and SME services.

• Customer satisfaction remained high, with NPS around 60 and digital channels scoring above 70.

• Retail loan growth continued, while commercial loans contracted; total loans up 3.3% year-over-year.

• Efficiency ratio improved to 37.6% in Q2 as profitability increased.

Financial highlights

• Net interest income for 6M24 increased 125% year-over-year to CLP 675 billion; NIM reached 3.6% in Q2 and 3.1% year-to-date.

• Operating income rose 19.4% in the quarter, driven by better margins.

• Fee income increased 6.5% quarter-over-quarter; Getnet fees up 41.2% year-over-year.

• Efficiency ratio improved to 37.6% in Q2 and 42.1% year-to-date.

• Operating expenses rose 15.2% year-over-year, but efficiency ratio improved by 984bp sequentially.

Outlook and guidance

• Upgraded 2024 ROE guidance to 17%-18%, with long-term target of 17%-19%.

• NIM guidance raised to 3.3%-3.5% for 2024; cost of risk expected to remain around 1.3%.

• Loan growth expected to be mid-single digit for 2024, with high single-digit growth anticipated for 2025, driven by consumer, auto, and SME lending.

• Fee growth projected at mid to high single digits for 2025, despite interchange fee regulation.

• Efficiency ratio targeted in the high 30% range.