Banco Santander-Chile announces its results for the second quarter of 2022 | National
SANTIAGO, Chile, July 29. 2022 (GLOBE NEWSWIRE) — Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) today announced its resultsi for the six-month period ended June 30, 2022 and the second quarter of 2022 (2Q22).
Net income attributable to shareholders up 40.9% year-on-year in 6M22, with ROAE of 28.7%
Net profit attributable to shareholders for the six months ended June 30, 2022 was Ch$521,257 million (Ch$2.77 per share and US$1.20 per ADR), up 40. 9% compared to 6M21. The Bank‘s ROAE reached 28.7% in 6M22, compared to 21.1% over the same period in 2021. The net interest margin (NIM) remained stable at 4.1% and the efficiency ratio s improved to 37.9% in 6M22 from 40.0% in 6M21.
Net profit attributable to shareholders in 2Q22 was Ch$285,514 million (Ch$1.52 per share and US$0.66 per ADR), up 51.8% compared to 2Q21 (at year-over-year from now) and 21.1% vs. 1Q22 (from now on QoQ). The positive year-over-year results were driven by a strong increase in operating profit of 20.5%, mainly due to net interest and readjustment income and fees. The Bank’s net interest margin (NIM) in 2Q22 was 4.5%, compared to 3.7% in 1Q22 and 4.2% in 2Q21, due to higher inflation in the quarter. This was offset by higher operating expenses as the Bank continues to invest in digital strategy and operational efficiency, as well as higher expenses related to the higher rate of inflation. Thus, the efficiency ratio reached 38.0%, increasing only slightly compared to 37.8% in 1Q22. The cost of credit reached 1.0% in the quarter, in line with forecasts. Overall coverage remained high at 227.8%. With these results, the Bank achieved its sixth consecutive quarter of over 20% ROAE which reached 31.7% in 2Q22.
Current account market share increases by 130 bps to 29.1%
Thanks to our efforts, the Bank’s market share in current accounts continues to grow strongly. According to the latest publicly available information, in April 2022, net current account openings were equivalent to more than 51.3% of total accounts opened in the rest of the banking system in the last twelve months, reaching a market share of 29 .1% in current accounts. accounts.
Additionally, our market share in US dollar checking accounts increased to 34.5% in April 2022.
Santander Life exceeds one million customers
Santander Life continues to be the main contributor to new customer growth due to the success of the product’s Meritolife program and the digital onboarding process for current account openings. The total number of Life customers in June 2022 increased by 42.0% year-on-year and in the second quarter of 2022, Life opened 59,366 current accounts, reaching a total of 1,035,984 customers.
Getnet’s success continues
Getnet’s success continues. This new company has installed more than 111,000 points of sale, which represents a market share of 14% in this market. In 2Q22, Getnet started rolling out its e-commerce solution. 94% of Getnet’s customers are SMEs and 99% of POS are marketed through the Bank’s distribution channels. This product was quickly monetized, generating Ch$9 billion in fees in the first half of 2022, growing 800% year-over-year. In 2Q22, Getnet has also already started to break even, after just over a year of operation.
Credit growth driven by business and consumer credit
Total loans increased by 3.8% quarter-on-quarter. Loan demand was boosted by high yield auto loans and credit card loans. Consumer loans rose 1.5% quarter-on-quarter. This was driven by a 5.2% qoq increase in Santander Consumer, our subsidiary that sells car loans, and a 7.4% qoq increase in credit card loans after several quarters of contraction. household consumption patterns returning to pre-pandemic levels. During the quarter, our SCIB segment saw strong growth of 12.8% in the last quarter as large corporations sought funding through corporate lending as the local fixed income market continued to be illiquid after withdrawals from pension funds.
The loan was also affected during the quarter by translation gains caused by the depreciation of the peso and the high inflation rate of the UF during the quarter.
Total deposits increased 2.1% quarter-on-quarter. Customers switch from demand deposits to term deposits as rates rise
During the quarter, the Central Bank continued to raise the monetary policy rate (MPR) from 7.0% to 9.0% at the end of June (currently at 9.75%). We expect the MPR to reach 10.5% in the coming months. This rise in rates had a direct impact on our financing mix. The Bank’s total deposits increased by 2.1% quarter-on-quarter. During the quarter, non-interest-bearing demand deposits fell 6.8% quarter-on-quarter as rising rates pushed our customers to switch to more attractive term deposits, which grew 17.1 % quarter-on-quarter.
The BIS ratio reaches 16.2%
Risk-weighted assets (RWA) increased by 1.1% compared to December 31, 2021 due to the implementation of Basel III, which includes from December 2021 operational risk-weighted assets and market. In 2Q22, the Bank paid its annual dividend equivalent to 60% of 2021 earnings. This led to the quarterly decline in our capital ratios from 10.4% in March 2022 to 9.6% as of June 30, 2022. The total BIS III ratio reached 16.2%.
Banco Santander Chile is the largest bank in the Chilean market in terms of loans and assets. As of June 30, 2022, the Bank had total assets of $76.9 billion, loans net of provisions of $40.3 billion, deposits of $30.0 billion and equity of $4.0 billion. of dollars. The BIS capital ratio as of June 30, 2022 was 16.2%, with a Tier 1 capital ratio of 9.6%. Banco Santander Chile is one of the riskiest companies in Latin America with an A1 rating from Moody’s, A- from Standard and Poor’s, A+ from Japan Credit Rating Agency, AA- from HR Ratings and A from KBRA.
Banco Santander Chile
Bandera 140, floor 20
Tel: (562) 2320-8284
Email: [email protected]
i The information in this report is unaudited and is presented in accordance with Chilean GAAP as defined by the Financial Markets Commission (CMF).