Banco Santander-Chile (BSANTANDER) Q3 2024 earnings summary

Executive summary

• Net income attributable to shareholders rose 329.4% year-over-year in 3Q24, with YTD net income up 81.9% to Ch$581,109 million and YTD ROAE at 18.2%, surpassing guidance.

• Achieved strong third quarter results with a notable rebound in profitability and return on equity, driven by improved income lines and digital transformation initiatives.

• Continued leadership in digital banking, with 2.2 million digital clients representing 86% of active customers and industry-leading Net Promoter Score for five consecutive years.

• Total deposits increased 3.7% YoY, with time deposits up 5.4% and demand deposits up 1.7%.

• Recognized as the top Chilean bank in the Dow Jones Sustainability Index, ranking in the top 3% globally for sustainability.

Financial highlights

• Quarterly net income reached Ch$243,133 million, up 329.4% YoY and 11.7% sequentially, with ROAE at 23.1%.

• Net interest and readjustment income increased 74.8% year-over-year for 9M24; NIM at 3.9% in 3Q24 and 3.4% YTD.

• Fee income grew 8.3% quarter-on-quarter and 5.4% year-on-year, with Getnet fees up 70.1% YoY.

• Efficiency ratio improved to 36.3% in 3Q24 and 40.0% for 9M24, down from 48.0% a year ago.

• Operating expenses rose 13.1% YoY, but efficiency ratio improved to 40.0%, down 808bp YoY.

Outlook and guidance

• Upgraded 2024 ROE/ROAE guidance to 18%-19%, with expectations for mid-single-digit loan growth, NIM of 3.4%-3.5%, high single-digit fee growth (ex-interchange), and efficiency in the high 30%s.

• For 2025, expects mid-single-digit loan growth, NIM in the high 3%s, cost of risk around 1.3%, and ROE of 18%-20%.

• Efficiency ratio projected to stay in the mid-30%s, with continued focus on digital transformation and technology investments.