Banco Santander-Chile (BSANTANDER) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached CLP $865 billion, up 73% year-over-year, with ROAE at 20.2% for 2024 and 26.0% in 4Q24.

• Operating income rose 34.5% YoY, driven by a 62.1% increase in net interest and readjustment income, as funding costs fell from 6.8% to 4.7%.

• Customer base expanded 6.4% YoY to 4.3 million, with digital customers up 5.9% YoY, now representing 88% of active clients.

• Market share in current accounts held at 23.2% as of October 2024, with strong digital product adoption and cross-selling.

• Recognized as best bank in multiple categories, including sustainability and SME services.

Financial highlights

• Net income per share was $4.55, and per ADR was US$1.83, up 73.0% and 52.5% YoY, respectively.

• Total operating income reached $2,622,870 million, up 34.5% YoY; operating expenses increased 12.4% YoY, mainly due to restructuring and digital transformation costs.

• NIM improved to 3.6% for 2024, with quarterly NIM at 4.2% in 4Q24.

• Efficiency ratio improved to 39% in 2024, with 4Q at 36.5%.

• Customer funds rose 12.6% YoY; total deposits increased 5.7% YoY, with demand deposits up 5.3% and time deposits up 6.0%.

Outlook and guidance

• 2025 targets: mid-single digit loan growth, NIM above 4%, efficiency in the mid-30% range, ROAE of 20–21%, and CET1 above 10.5%.

• Macro expectations for 2025: GDP growth of 2.3%, inflation (UF) at 4.1%, and average MPR at 4.9%.

• Guidance assumes current macroeconomic trends in rates, inflation, and asset/liability mix.