Edgar Filing: BANCO SANTANDER CHILE

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of Dec. 2007

Commission File Number: 001-14554

Banco Santander Chile

Santander Chile Bank

(Translation of Registrant’s Name into English)

Bandera 140

Santiago, Chile

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Table of Contents

Item

1.	Material Event published on July 30, 2008 (English translation)

2.	Second Quarter Earnings Report published on July 30, 2008 (nominal terms)

3.	First Half 2008 Earnings (Spanish version, real terms)

Material Event

In the Board meeting held on July 29, 2008, the appointment of Vittorio Corbo Lioi as a new Board member was ratified.

In the same Board meeting, Lucía Santa Cruz was appointed as the new member of the Bank’s Audit Committee, replacing Benigno Rodríguez Rodríguez.

INDEX

SECTION	PAGE

SECTION 1: SUMMARY OF RESULTS AND STRATEGY	2

SECTION 2: VOLUME GROWTH	6

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT	8

SECTION 4: SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL	16

SECTION 5: CREDIT RISK RATINGS	17

SECTION 6: SHARE PERFORMANCE	18

SECTION 7: INSTITUTIONAL BACKGROUND	19

ANNEX 1: BALANCE SHEET	20

ANNEX 2: YTD INCOME STATEMENT	21

ANNEX 3: QUARTERLY INCOME STATEMENT	22

ANNEX 4: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION	23

ANNEX 5: QUARTERLY EVOLUTION OF BALANCE SHEET	24

ANNEX 6: QUARTERLY EVOLUTION OF INCOME STATEMENT	25

ANNEX 7: NEW ACCOUNTING FORMAT	26

CONTACT INFORMATION		Santiago, Chile
Robert Moreno		Tel: (562) 320-8284
Manager, Investor Relations Department		Fax: (562) 671-6554
Banco Santander Chile		Email: rmorenoh@santander.cl
Bandera 140 Piso 19,		Website: www.santander.cl

Investor Relations Department	1
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 1: SUMMARY OF RESULTS AND STRATEGY

Second Quarter 2008 Results Summary

* Core revenues: Net interest income + fee income

** Net operating income: Core revenues + provision expense + operating expenses + market related income + other operating income, net

In 2Q08, net income attributable to shareholders totaled Ch$78,440 million (Ch$0.42 per share and US$0.83/ADR) decreasing 2.5% YoY. Core revenues increased 24.3% YoY and net operating income increased 6.1% YoY. These strong operating trends in 2Q08 were offset by higher costs and a larger loss from price level restatement compared to 2Q07, both negatively impacted by rising inflation. Net income increased 3.7% QoQ with a 14.4% rise in core revenues and a 14.7% increase in net operating income. ROAE in 2Q 2008 reached 23.2% compared to 21.6% in 1Q08 and 25.8% in 2Q07. We have the highest ROE in the Chilean financial system.

Results in 2Q 2008 were in line with our strategy, which in 2Q08 was fine-tuned in order to align it with slower expected economic growth. The main strategic objectives set in 2Q08 for the next 18 months are the following:

1. Proactive management of the balance sheet.

· Selective loan growth with a focus on upper and middle income individuals and companies.

In 2Q08, total loans increased 6.3% QoQ and 19.1% YoY. Loan growth accelerated in the quarter due to the pick up in lending to companies and solid growth in the middle and upper income individual business segment. Corporate lending increased 3.2% QoQ and 14.2% YoY and lending to the middle market increased 7.4% QoQ and 17.4% YoY. Retail lending continued to expand at a steady pace in the quarter, increasing by 5.6% QoQ and 19.7% YoY with all loan growth coming from middle to upper income clients. Lending to lower income individuals decreased 15.2% QoQ and 10.3% YoY.

·	Increasing spreads.

A key part of the Bank’s strategy since 2007 has been to focus strongly on spreads in order to sustain profitability in riskier segments and to compensate for potentially higher funding costs. In 2Q08, the Bank’s average loan spread reached 5.5%, increasing 20 bp compared to 1Q08 and 30bp compared to 2Q07. The net interest margin increased 60 basis points QoQ and 40 basis points YoY, reaching 6.2% in 2Q08.

Investor Relations Department	2
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

·	Focus on customer deposits, liquidity and maintaining strong capitalization ratios.

In 2Q08, customer funds increased 5.5% QoQ and 16.8% YoY. The average balance of non-interest bearing checking accounts increased 7.6% QoQ and 16.1% YoY. The positive performance of checking account balances reflects our strong growth in checking account holders and the Bank’s solid positioning in the cash-management business. This also reduced the negative impact of rising rates on funding costs, as the yield on checking accounts rises with rate hikes. The ratio of free funds (average equity plus average demand deposits over interest earning assets) increased from 30.8% in 1Q08 to 31.9% in 2Q08 and remained flat compared to 2Q07.

The Bank’s BIS ratio as of June 30, 2008 reached 12.9% with a Tier I ratio of 9.6%. In July 2008, the Bank issued in the local market US$117 million in subordinated bonds in the local market to further strengthens capital ratios. This bond was issued at an attractive yield of 70bp over the 30 year Chilean Central Bank rate. Following this issue, the Bank’s BIS ratio reached a solid level of 13.3%. This is the highest BIS ratio among our main competitors.

As a result of the proactive management of the asset and funding mix coupled with rising spreads and higher inflation, in 2Q08 net interest income was up 17.2% QoQ and 27.1% YoY.

2. Proactive management of risks to balance growth with an expected rise in risks.

As mentioned in previous releases, provisions are expected to increase due to the growth of lending to higher yielding and the expected economic slowdown foreseen for 2H 2008. In 2Q08, the Bank continued increasing spreads and tightened admission standards in the middle and lower income segments in order to contain the growth of provision expense. As a result of these measures, the growth rate of new non-performing loans has been descending, especially among individuals.

In 2Q08, the Bank’s net provision expense increased 15.5% QoQ and 56.7% YoY. This rise was mainly driven by the YoY loan growth in retail banking and higher charge-offs in consumer loans due to the economic slowdown. It is important to point out that despite this rise in provision expense, net interest income including provision expense increased 18.0% QoQ and 16.8% YoY, reflecting that the increase in spreads, the higher inflation rates and the improved funding mix has more than offset the rise in risk.

Investor Relations Department	3
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

3. Focus on increasing cross-selling and product usage to boost fees

Net fee income increased 4.4% QoQ and 14.5% YoY in 2Q08 base. The expansion of cross-selling and product usage, especially in retail banking is driving fee income growth. The total number cross-sold clients increased 13.4% YoY in June 2008. In the second half of 2008, the Bank is planning to continue dedicating more resources towards increasing cross-selling instead of expanding the total client base. This should also positively impact the Bank’s productivity and efficiency levels in retail banking.

4. Tight control of costs. Focus on productivity gains and control of recurring costs. Maximize profitability of new branches.

In 2Q08, the efficiency ratio continued to improve, reaching 38.8% compared to 39.1% in 2Q07 and 39.0% in 1Q08. Total operating expenses increased 14.2% QoQ and 19.4% YoY. The YoY increase in operating expenses was due to higher commercial activities, the expansion of the distribution network and the higher inflation. In light of the expected slowdown in economic growth, the Bank has begun to shift its strategic focus by limiting the opening of new branches in order to maximize the profitability of the existing network and to control costs. Since 1/3 of the Bank’s branches have been opened in the past three years, there is still ample room to sustain growth by maximizing profitability of the newly opened offices. As of June 2008, the Bank’s distribution network totaled 468 offices, increasing 0.4% QoQ and 9.3% YoY. As of June 2008, the Bank had 2,016 ATMs, representing an increase of 15.6% YoY and 1.4% QoQ.

1H 2008 Results Summary

In the first half of 2008 (1H08), net income attributable to shareholders increased 0.9% YoY and totaled Ch$154,083 million (Ch$0.82/share and US$1.63/ADR). Growth was led by a 26.2% increase in core revenues. Net interest income increased 29.8% and fee income 14.4% YoY. The net interest margin in 1H08 reached a record level of 5.9% compared to 5.4% in 1H07. The efficiency ratio reached 38.9% in the same period. Net operating income increased 9.2%. These higher operating results were offset by an 86.2% rise in non-operating losses, net which were negatively affected by higher losses from price level restatement. ROAE reached 22.5% in 1H08.

Investor Relations Department	4
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Banco Santander Chile: Summary of Results

	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07			2Q08 / 2Q07			2Q / 1Q 2008
Net interest income		221,451			188,914			174,208			27.1	%		17.2	%
Fee income		55,946			53,584			48,877			14.5	%		4.4	%
Core revenues		277,397			242,498			223,085			24.3	%		14.4	%
Market related income		22,019			13,288			21,344			3.2	%		65.7	%
Other operating income		4,850			9,447			8,507			(43.0	)%		(48.7	)%
Total operating income		304,266			265,233			252,936			20.3	%		14.7	%
Operating expenses		(118,112	)		(103,405	)		(98,943	)		19.4	%		14.2	%
Provision expense		(70,374	)		(60,929	)		(44,900	)		56.7	%		15.5	%
Net operating income		115,780			100,899			109,093			6.1	%		14.7	%
Net income		79,573			76,522			80,768			(1.5	)%		4.0	%
Minority interest		1,133			879			281			303.2	%		28.9	%
Net income attributable to shareholders		78,440			75,643			80,487			(2.5	)%		3.7	%
Net income/share (Ch$)		0.42			0.40			0.43			(2.5	)%		3.7	%
Net income/ADR (US$)¹		0.83			0.95			0.84			(1.2	)%		(12.5	)%
Total loans		13,216,808			12,435,062			11,098,130			19.1	%		6.3	%
Customer funds		14,619,427			13,851,334			12,512,694			16.8	%		5.5	%
Shareholders’ equity		1,373,197			1,419,268			1,245,938			10.2	%		(3.2	)%
Net interest margin		6.2	%		5.6	%		5.8	%
Efficiency ratio		38.8	%		39.0	%		39.1	%
Return on average equity³		23.2	%		21.6	%		25.8	%
PDL / Total loans		1.1	%		1.1	%		1.0	%
Coverage ratio of PDLs		173.2	%		180.3	%		199.8	%
Expected loss⁴		1.9	%		2.0	%		1.9	%
BIS ratio		12.9	%		13.3	%		13.0	%
Branches⁵		468			466			428
ATMs		2,016			1,989			1,744
Employees		9,230			9,177			8,913

1. The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate.

2. Annualized Quarterly Earnings / Average Equity.

3. Allowance for loan losses / Total loans.

4. Includes SuperCaja and mini payment centers.

Investor Relations Department	5
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 2: VOLUME GROWTH

LOANS

Selective loan growth with a focus on upper and middle income individuals and companies

Loans	Quarter ended,						% Change
(Ch$ million)	Jun-08		Mar-08		Jun-07 (reclassified)		June 08 / 07			June 08 / Mar. 08
Total loans to individuals¹		6,397,456		6,051,080		5,376,224		19.0	%		5.7	%
Consumer loans		2,205,135		2,158,563		1,931,833		14.1	%		2.2	%
Residential mortgage loans		3,637,108		3,454,383		3,068,067		18.5	%		5.3	%
SMEs		2,314,975		2,200,282		1,905,480		21.5	%		5.2	%
Institutional lending		231,156		218,446		191,410		20.8	%		5.8	%
Total retail lending		8,943,587		8,469,808		7,473,114		19.7	%		5.6	%
Middle-Market & Real estate		2,703,058		2,516,708		2,302,678		17.4	%		7.4	%
Corporate		1,461,899		1,416,921		1,280,267		14.2	%		3.2	%
Total loans ^2,3		13,216,808		12,435,062		11,098,130		19.1	%		6.3	%

1 A part from consumer and mortgage loans, total loans to individuals includes other loan products to individuals

2 Includes past due loans in each category.

3 Excludes allowance for loan losses, interbank loans and other non-segmented loans

In 2Q08, total loans increased 6.3% QoQ and 19.1% YoY. Loan growth accelerated in the quarter due to the pick up in high yielding loan products to companies, translation gain produced by the depreciation of the peso against the US$ dollar and higher inflation and continued growth in retail banking.

Corporate lending increased 3.2% QoQ and 14.2% YoY and lending to the middle market increased 7.4% QoQ and 17.4% YoY. The 18.5% depreciation of the peso against the US$ dollar in the quarter resulted in a translation gain in dollar denominated loans. As a result, foreign trade loans increased 34.9% QoQ. Excluding foreign trade loans, commercial loans increased 4.7% QoQ and 17.6% YoY. High yielding factoring operations increased 53.1% QoQ and 79.8% YoY. Leasing, another high spread commercial loan, increased 5.9% QoQ and 18.5% YoY. Ample local liquidity coupled with a contraction of financing abroad and higher spreads has boosted lending to companies in the quarter. This is a trend we expect to continue in the second half of 2008.

Investor Relations Department	6
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Retail lending continued to expand at a steady pace in the quarter, increasing by 5.6% QoQ and 19.7% YoY. Residential mortgage lending increased 5.3% QoQ and 18.5% YoY. Despite higher long-term rates, demand for residential mortgages remained healthy, especially among middle-upper income segments. Consumer loans expanded 2.2% QoQ and 14.1% YoY. All loan growth was concentrated in middle to upper income segments. In light of an expected slowdown in economic growth, the Bank is focusing on increasing its retail loan book in high income segments in the coming quarters. Lending to low income individuals decreased 15.2% QoQ and 10.3% YoY.

CUSTOMER FUNDS

Solid growth of customer deposits reflects a healthy liquidity scenario

Customer funds	Quarter									Change %
(Ch$ million)	Jun-08			Mar-08			Jun-07 (reclassified)			June 08 / 07			June 08 / Mar. 08
Non-interest bearing deposits		3,195,906			2,773,548			2,591,979			23.3	%		15.2	%
Time deposits		8,390,418			8,407,623			7,343,085			14.3	%		(0.2	)%
Total customer deposits		11,586,324			11,181,171			9,935,064			16.6	%		3.6	%
Mutual funds		3,033,103			2,670,163			2,577,630			17.7	%		13.6	%
Total customer funds		14,619,427			13,851,334			12,512,694			16.8	%		5.5	%
Bonds		2,405,006			2,196,889			1,708,506			40.8	%		9.5	%
Quarterly inflation rate		2.17	%		1.02	%		1.00	%
Avg. overnight interbank rate (nominal)		6.39	%		6.22	%		5.08	%
Avg. 10 year Central Bank yield real)		3.06	%		2.84	%		2.90	%
Avg. 10 year Central Bank yield (nominal)		6.98	%		6.46	%		5.94	%

In 2Q08, inflation continued to exceed market expectations fuelling further rises in short-term interest rates. The average overnight interbank rate went up 17 basis points in the quarter and average long-term nominal rates increased 52 basis points. Despite this, the funding mix continued to improve. In 2Q08, customer funds increased 5.5% QoQ and 16.8% YoY. Time deposits decreased 0.2% QoQ and 14.3% YoY. During the quarter, the Bank continued to issue long-term bonds in the local market in order to increase the maturity of its funding base, especially among institutional investors, in order to shield funding costs from rising short-term rates and to match the Bank’s long term mortgage portfolio.

Investor Relations Department	7
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

The balance of non-interest bearing deposits increased 15.2% QoQ and 23.3% YoY. The average balance of non-interest bearing checking accounts increased 7.6% QoQ and 16.1% YoY. The positive performance of checking account balances reflects our strong growth in checking account holders and the Bank’s solid positioning in the cash-management business. This also helps to reduce the negative impact of rising rates on funding costs, as the yield on checking accounts rises with rate hikes. Translation gains on dollar denominated checking account also partially explains this rise in non-interest bearing demand deposits in the quarter.

Despite more unfavorable market conditions, assets under management in our mutual fund subsidiary increased 13.6% QoQ and 17.7% YoY. The weaker stock market hurt equity funds, but long-term fixed income funds were positively impacted by higher inflation and foreign funds were positively affected by the depreciation of the peso against the U.S. dollar in the quarter.

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT

NET INTEREST INCOME

Positive evolution of NIM driven by improved asset/funding mix and higher inflation. Focus in 2H08 on spreads and funding mix.

Net Interest Income / Margin	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Net interest income		221,451			188,914			174,208			27.1	%		17.2	%
Average interest-earning assets		14,252,583			13,547,248			11,931,595			19.5	%		5.2	%
Average loans		12,817,994			12,285,523			11,121,879			15.3	%		4.3	%
Net interest margin (NIM)		6.2	%		5.6	%		5.8	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		31.9	%		30.8	%		32.0	%
Quarterly inflation rate		2.17	%		1.02	%		1.00	%
Avg. overnight interbank rate (nominal)		6.39	%		6.22	%		5.08	%
Avg. 10 year Central Bank yield (real)		3.06	%		2.84	%		2.90	%

1. Annualized.

2. Inflation measured as the variation of the Unidad de Fomento in the quarter.

In 2Q08, net interest income was up 27.1% YoY. Average earning assets increased 19.5% YoY, while the net interest margin - NIM - increased 40 basis points in the same period. Among the reasons for this improved NIM, it is worth mentioning:

Investor Relations Department	8
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Focus on spreads. A key part of the Bank’s strategy since 2007 has been to focus strongly on spreads in order to sustain profitability in riskier segments and to compensate for potentially higher funding costs. In 2Q08, the Bank’s average loan spread reached 5.5%, increasing 20 bp compared to 1Q08 and 30bp compared to 2Q07.

* Excludes Corporate banking

Inflation. The rise in margins is also due to higher inflation rates in 2Q08. The Bank maintains long-term assets (mainly medium and long-term financial investments and mortgage loans) that are denominated in Unidades de Fomento (UFs), and inflation indexed unit, which are partially funded with nominal or non-interest bearing peso short-term deposits. As the Bank maintains a positive gap between assets and liabilities indexed to inflation, a rise in inflation has a positive effect on net interest income and margins. This is partially offset by the loss from price level restatement and higher operating costs which, to a large extent are indexed to inflation. Going forward margins could continue expand or contract depending on the evolution of inflation. For this reason, management has remained focused on increasing spreads and improving the asset and funding mix to sustain margins going forward.

Funding mix. During the quarter, as inflation continued to exceed market expectations, the Central Bank has continued increasing short-term interest rates. This has pressured the Bank’s NIM by increasing deposit costs. Two other factors have contributed to counterbalancing the higher short-term rates: (i) the Bank’s balance sheet has a positive sensitivity to rising short-term rates as the Bank has been issuing long-term bonds in the local market at attractive rates and (ii) as short-term rates rise, the yield obtained over non-interest bearing deposits and capital also goes up. The ratio of free funds (average equity plus average demand deposits over interest earning assets) increased from 30.8% in 1Q08 to 31.9% in 2Q08 and remained flat compared to 2Q07.

Net interest income in 2Q08 increased 17.2% QoQ and the NIM increased 60bp. This QoQ rise in margins was mainly due to the higher inflation rate and higher loan spreads in 2Q08 compared to 1Q08.

Investor Relations Department	9
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

PROVISION FOR LOAN LOSSES

Net provision expense affected by lower loan loss recoveries, a rise in charge-offs in retail banking and higher provisions in the middle market.

Provision for loan losses	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Gross provisions		(12,824	)		(13,579	)		(11,242	)		14.1	%		(5.6	)%
Charge-offs		(66,250	)		(57,570	)		(47,965	)		38.1	%		15.1	%
Gross provisions and charge-offs		(79,074	)		(71,149	)		(59,207	)		33.6	%		11.1	%
Loan loss recoveries		8,700			10,220			14,307			(39.2	)%		(14.9	)%
Net provisions for loan losses		(70,374	)		(60,929	)		(44,900	)		56.7	%		15.5	%
Total loans		13,216,808			12,435,062			11,098,130			19.1	%		6.3	%
Total reserves (RLL)		(256,183	)		(243,982	)		(211,112	)		21.3	%		5.0	%
Past due loans* (PDL)		147,874			135,354			105,668			39.9	%		9.2	%
Gross provision expense / Loans		2.39	%		2.29	%		2.13	%
Cost of credit**		2.13	%		1.96	%		1.62	%
PDL / Total loans		1.12	%		1.09	%		0.95	%
Expected loss (RLL / Total loans)		1.94	%		1.96	%		1.90	%
Coverage of past due loans***		173.2	%		180.3	%		199.8	%

* Past due loans: installments or credit lines more than 90 days overdue.

** Net provision expense / loans annualized.

*** RLL / Past due loans.

In 2Q08, the Bank’s net provision expense increased 15.5% QoQ and 56.7% YoY. This rise was mainly driven by the YoY loan growth in retail banking and higher charge-offs in consumer loans due to the economic slowdown. The increase in provision expense was also due in part to a one-time provision expense of approximately Ch$2,000 million recognized in April 2008 and directly related to a single client in the Middle-market segment.

Net provisions for loan losses by segment	Quarter								Change %
(Ch$ million)	2Q08		1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Retail banking*		64,068		61,356			42,758			49.8	%		4.4	%
Middle-market		6,308		(600	)		2,028			211.0	%		(1151.3	)%
Corporate banking		123		(27	)		(32	)		(484.4	)%		(555.6	)%
Total net provisions for loan losses**		70,499		60,729			44,754			57.5	%		16.1	%

* Includes individuals, institutional lending and SMEs.

As mentioned in previous releases, provisions are expected to increase due to the growth of retail lending and the expected economic slowdown foreseen for 2H 2008. In 2Q08, the Bank proactively tightened admission standards in the middle and lower income segments in order to contain the growth of provision expense. Spreads have also been incremented to cover for a high risk scenario expected in the coming quarters. As a result of these measures, net interest income after net provision expense increased 18.0% QoQ and 16.8% YoY.

Investor Relations Department	10
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

The increase in net provision expense was also due to the 14.9% QoQ and 39.2% YoY reduction in loan loss recoveries. The collection departments is now focused on incrementing the rate of recoverability in the first six months of non-performance as efforts to collect after this period tend to be less cost efficient. After this period, the Bank tries to sell these charged-off loans and any gain will be recognized as market related income.

The expected loan loss ratio (Loan loss allowances / Total loans), which is a ratio that measures how much of the Bank’s loan portfolio is at risk remained steady QoQ and YoY at 1.94% due to the Bank’s conservative charge-off policies. The cost of credit (Net provision expense / Total loans, annualized) reached 2.13% in 2Q08 up from 1.96% in 1Q08 and 1.62% in 2Q07. Going forward, the expected loan loss ratio and the cost of credit should rise given the expected lower economic growth.

The past due loan ratio (Past due installment >90 days / Total loans) as of June 2008 reached 1.12% compared to 1.09% in 1Q08 and 0.95% in 2Q08. Coverage of past due loans (Loan loss allowance / Past due loans) reached a healthy 173.2% as of June 2008 compared to 180.3% at March 2008 and 199.8% at June 2007. It is important to point out that the Bank has been proactively managing credit risk in order to limit future deterioration of asset quality. Total gross non-performing loans (total balance of all loans at least 90 day overdue + charge-offs - recoveries) have shown a positive evolution in 2Q08, especially among individuals. This should help to contain the expansion of past due loans and provision expense in the coming quarters.

Investor Relations Department	11
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

NET FEE INCOME

Focus on cross-selling

Fee Income	Quarter						Change %
(Ch$ million)	2Q08		1Q08		2Q07 (reclassified)		2Q08 / 2Q07			2Q / 1Q 08
Checking accounts & lines of credit		15,468		15,593		14,826		4.3	%		(0.8	)%
Credit, debit & ATM card fees		10,524		11,245		8,153		29.1	%		(6.4	)%
Collection fees		10,265		8,744		9,364		9.6	%		17.4	%
Asset management		7,592		7,153		7,208		5.3	%		6.1	%
Insurance brokerage		4,286		3,500		3,176		34.9	%		22.5	%
Guarantees, pledges and other contingent operations		3,960		3,812		3,533		12.1	%		3.9	%
Fees from brokerage and custody of securities		2,115		1,493		1,723		22.7	%		41.6	%
Other Fees		1,736		2,043		894		94.2	%		(15.0	)%
Total fees		55,946		53,584		48,877		14.5	%		4.4	%

Net fee income increased 4.4% QoQ and 14.5% YoY in 2Q08. The expansion of cross-selling and product usage, especially in retail banking is driving fee income growth. Santander Chile has the largest client base (excluding the state owned bank). The total number of clients increased 11.6% YoY to 2.95 million in 2Q08 and the amount of cross-sold clients increased 13.4% YoY in June 2008. Despite this improvement, only 30% of our clients have 2 or more products, reflecting the high cross-selling potential of the Bank’s client base.

Fees from checking accounts and lines of credit decreased 0.8% QoQ and increased 4.3% YoY. Going forward and, especially in 2009, fee income from lines of credit may be hampered by regulatory changes that will limit amounts charged for un-authorized overdrafts. This reduction in checking account fees, which are in general flat fees, was offset by an increase in usage related fees in line with the Bank’s strategy for fee growth in 2008.

Fees from credit, debit and ATM cards increased 29.1% YoY. The usage of electronic means of payments continues to steadily grow in Chile as bank penetration and cross-selling ratios improve. According to information published by Transbank, the industry’s credit card processor, as of June 2008, Santander Chile’s market share in bank credit cards reached 36.0%, reflecting an increase of 10.7% YoY in the Bank’s number of credit card accounts. Purchases with Santander credit cards in monetary terms grew more than 20% YoY as of June 2008. Market share in terms of purchases reached 35.9% as of June 2008 compared to 35.4% as of June 2007. Including department stores, we estimate our market share in the credit card business at 14.6% of total purchases. Fees from credit, debit and ATM cards decreased 6.4% QoQ due to seasonal factors as the month of March is a high expenditure month following summer holidays.

Collection fees increased 17.4% QoQ and 9.6% YoY. The main driver of fee growth in this line item is the collection of loan insurance policies on behalf of third parties which evolves with overall commercial activity. Other collection services have been decreasing in importance as clients use on-line banking, which is more cost efficient for the Bank and the client. Seasonal factors also impact the QoQ evolution of fees in this item.

Investor Relations Department	12
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Asset management fees increased 6.1% QoQ and 5.3% YoY led by the rise in assets under management (See Customer Funds).

Fees from guarantees, pledges and other contingent operations increased 3.9% QoQ and 12.1% YoY, in line with higher commercial activity in corporate segments. These activities do not consume capital and generate fee income. The corporate segments main focus is on non-lending activities that generates 60% of net operating profits.

Insurance brokerage fees increased 22.5% QoQ and 34.9% YoY in 2Q08. The continued strength in distributing insurance products has continued to fuel insurance related fees. The Bank’s strength in cross-selling the client base by offering attractive insurance products through the Internet has been a key driver in this line item.

Fees securities brokerage and custody increased 41.6% QoQ and 22.7% YoY due to an increase in cross-selling of brokerage services to retail clients, an increase in traded volumes with institutional investors and more foreign investment activity in our local stock brokerage.

OPERATING EXPENSES AND EFFICIENCY

The efficiency ratio continues to improve. The Bank to tighten cost control and maximize profitability of new branch network

Operating Expenses	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Personnel expenses		(51,800	)		(44,339	)		(42,742	)		21.2	%		16.8	%
Administrative expenses		(41,969	)		(38,698	)		(37,275	)		12.6	%		8.5	%
Depreciation and amortization		(13,078	)		(11,474	)		(10,013	)		30.6	%		14.0	%
Other operating expenses		(11,265	)		(8,894	)		(8,913	)		26.4	%		26.7	%
Operating expenses		(118,112	)		(103,405	)		(98,943	)		19.4	%		14.2	%
Efficiency ratio*		38.8	%		39.0	%		39.1	%

*	Operating expenses / Operating income. Operating income = Net interest income + Net fee income+ Market related income + Other operating income.

In 2Q08, the efficiency ratio reached 38.8% improving from 39.1% in 2Q07 and 39.0% in 1Q08. Total operating expenses increased 14.2% QoQ and 19.4% YoY. Personnel expenses increased 16.8% QoQ and 21.2% YoY. The QoQ increase in personal expenses was due in part to seasonal factors. The YoY and QoQ rise in personnel expenses was also due to the annual increase in wages by CPI in April. The wage increase was 4% for all employees following a 4% rise in September of 2007 and 3% in April 2007. The Bank’s average headcount increased 5.5% YoY.

The 8.5% QoQ and 12.6% YoY increase in administrative expenses was directly linked to the higher commercial activities, the larger distribution network and the higher inflation. In light of the expected slowdown in economic growth, the Bank has begun to shift its strategic focus by limiting the opening of new branches in order to maximize the profitability of the existing network and to control costs. As of June 2008, the Bank’s distribution network totaled 468 offices, increasing 0.4% QoQ and 9.3% YoY. As of June 2008, the Bank had 2,016 ATMs, representing an increase of 15.6% YoY and 1.4% QoQ. Since 1/3 of the Bank’s branches have been opened in the past three years, there is still ample room to sustain growth by maximizing profitability of the newly opened offices.

Investor Relations Department	13
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

The 26.4% YoY rise in depreciation and amortization expenses is also directly related to the growth of the Bank’s distribution network.

Other operating expenses are mainly expense primarily relating to the Bank’s call center, credit card related expenses and expenses related to repossessed assets. The increase in other operating expenses was mainly driven by higher insurance expenses linked to greater credit card usage.

GAINS (LOSSES) ON FINANCIAL TRANSACTIONS

Positive results from client related activities despite sharp rise in rates and inflation

In 2Q08, the gains from market related income totaled Ch$22,019 million. The 65.7% QoQ and 3.2% YoY increase in market related income was mainly due to a positive evolution of the market-making business and the sale of treasury products through Santander Global Connect to corporate and middle market clients.

Net Result from Financial Transactions	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Net gains from mark-to-market and trading		163,192			(88,693	)		33,339			389.5	%		—	%
Exchange differences, net		(141,173	)		101,981			(11,995	)		1,076.9	%		—	%
Net result from financial transactions		22,019			13,288			21,344			3.2	%		65.7	%

For analysis purposes only, we have created the line item: Net results form financial transactions. This is the sum of the net gain (loss) from trading, the mark-to-market of financial investment and derivatives and exchange differences. The results recorded as exchange differences, net mainly includes the translation gains or losses of assets and a liability denominated in foreign currency, but does not include the mark-to-market of FX derivatives. As Santander Chile limits its foreign exchange gap, the results recorded in foreign exchange transactions are, for the most part, offset by the mark-to-market of foreign currency forwards. For this reason they are added to the net gains (loss) from trading and mark-to-market, which includes the mark-to-market of FX forwards.

**	Quarterly variation of the Unidad de Fomento (UF).

These gains were partially offset by lower results from proprietary trading, which were negatively affected by rising rates and inflation as can be observed in the graphs.

Source: Bloomberg

Investor Relations Department	14
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

OTHER OPERATING INCOME AND NON-OPERATING ITEMS

Other Income and Expenses	Quarter									Change %
(Ch$ million)	2Q08			1Q08			2Q07 (reclassified)			2Q08 / 2Q07			2Q / 1Q 08
Other operating income		4,850			9,447			8,507			(43.0	%)		(48.7	)%
Income attributable to investments in other companies		1,180			(262	)		(728	)		—	%		—	%
Price level restatement		(22,546	)		(8,873	)		(13,633	)		65.4	%		154.1	%
Income tax		(14,841	)		(15,242	)		(13,964	)		6.3	%		(2.6	)%

Other operating income, which mainly includes the results from the sale and maintenance of repossessed assets and other results, totaled Ch$4,850 million in 2Q08, decreasing 48.7% QoQ and 43.0% YoY. The QoQ decline was mainly due to the one-time gain of Ch$3,274 million from the sale of shares held in Visa and a Ch$974 million gain from the sale of a share in the Santiago Stock Exchange recorded in 1Q08. The YoY decline was mainly due to higher non-credit provision for legal contingencies recognized in 2Q08.

Price level restatement in the quarter totaled a loss of Ch$22,546 million. The difference in inflation rates explains the variation in price level restatement. The Bank must adjust its capital and fixed assets for the variations in price levels. When inflation is positive, the Bank records a loss from price restatement, since the Bank's capital is larger than fixed assets. The inflation rate was 2.17% in 2Q08 compared to 1.02% in 1Q08 and 1.0% in 2Q07.

Investor Relations Department	15
Bandera 140 19^th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 4: SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

Solid capitalization ratios

Shareholders' Equity	Quarter									Change %
(Ch$ million)	Jun-08			Mar-08			Jun-07 (reclassified)			June 08 / 07			June 08 / Mar. 08
Capital		818,535			818,535			761,853			7.4	%		0.0	%
Reserves		89,057			58,797			65,096			36.8	%		51.5	%
Unrealized gain (loss) Available-for-sale financial assets		(45,900	)		(21,155	)		(4,445	)		932.6	%		117.0	%
Retained Earnings:
Retained earnings previous periods		381,030			581,651			252,872			50.7	%		(34.5	)%
Net income		154,083			75,643			152,675			0.9	%		103.7	%
Provision for mandatory dividend		(46,225	)		(115,288	)		0
Minority Interest		22,616			21,085			17,887			26.4	%		7.3	%
Total Equity		1,373,196			1,419,268			1,245,938			10.2	%		(3.2	)%

* Equivalent to 30% of earnings. By law banks must payout at least 30% of earnings and the Bank must now provision for this minimum mandatory dividend.

Shareholders’ equity totaled Ch$1,373,197 million (US$2.6 billion) as of June 30, 2008. ROAE in 2Q08 reached 23.2% compared to 21.6% in 1Q08 and 25.8% in 2Q07. During 2Q08, the Bank paid its annual dividend, which this year totaled Ch$1.0646 per share, corresponding to 65% of 2007 net income and 8.1% higher than the dividend paid in 2007. In US dollars, the dividend was approximately US$2.37 per ADR and 21.4% higher than the last yearly dividend paid. This corresponded to a dividend yield of 4.5% based on local share price on the record date.

The Bank’s BIS ratio as of June 30, 2008 reached 12.9% with a Tier I ratio of 9.6%. In July 2008, the Bank issued in the local market US$117 million in subordinated bonds in the local market to further strengthen capital ratios. This bond was issued at an attractive yield of 70bp over the 30 year Chilean Central Bank rate. Following this issue, the Bank’s BIS ratio reached a solid 13.3%. This is in line with our strategic objectives for 2H08 to focus on liquidity, funding and capital.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	Jun-08			Mar-08			Jun-07 (reclassified)			June 08 / 07			June 08 / Mar. 08
Tier I*		1,350,580			1,398,183			1,075,377			25.6	%		(3.4	)%
Tier II		461,436			415,905			467,469			(1.3	%)		10.9	%
Regulatory capital		1,812,015			1,814,088			1,542,846			17.4	%		(0.1	)%
Risk weighted assets		14,066,367			13,593,098			11,851,230			18.7	%		3.5	%
Tier I ratio		9.6	%		10.3	%		9.1	%
BIS ratio		12.9	%		13.3	%		13.0	%

* Tier I includes year-to-date net income in 2008

Investor Relations Department

Bandera 140 19^th Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 5: CREDIT RISK RATINGS

International ratings:

The Bank has credit ratings from three leading international agencies. We have the highest risk rating in Latin America.

Moody’s	Rating
Long-term bank deposits		A2
Senior bonds		Aa3
Subordinated debt		Aa3
Bank Deposits in Local Currency		Aa2
Bank financial strength		B-
Short-term deposits		P-1
Outlook		Stable

Standard and Poor’s	Rating
Long-term Foreign Issuer Credit		A+
Long-term Local Issuer Credit		A+
Short-term Foreign Issuer Credit		A-1
Short-term Local Issuer Credit		A-1
Outlook		Stable

Fitch	Rating
Foreign Currency Long-term Debt		A+
Local Currency Long-term Debt		A+
Foreign Currency Short-term Debt		F1
Local Currency Short-term Debt		F1
Individual rating		B
Outlook		Stable

Local ratings:

Our local ratings, the highest in Chile, are the following:

Local ratings	Fitch Ratings		Feller Rate
Shares		Level 2		1CN1
Short-term deposits		N1+		Level 1+
Long-term deposits		AAA		AAA
Mortgage finance bonds		AAA		AAA
Senior bonds		AAA		AAA
Subordinated bonds		AA+		AA+
Outlook		Stable		Stable

Investor Relations Department

Bandera 140 19^th Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 6: SHARE PERFORMANCE

June 2008

Ownership Structure:

ADR Price Evolution

Santander ADR vs. Global 1200 Financial Index (Base 100 = 12/31/2003)

ADR price (US$) 2008
Year-end 2007:			50.99
Maximum (2008):			54.60
Minimum (2008):			41.78
Close (3/31/08):			43.01

Market Capitalization: US$7,802 million

P/E 12 month trailing:	13.0
P/BV:	2.94
Dividend yield*:	4.5	%

* Based on closing price on record date of last dividend payment.

Daily traded volumes 2Q 2008

Local Share Price Evolution

Santander vs IPSA Index

(Base 100 = 12/31/2003)

Local share price (Ch$) 2008
Year-end 2007:			24.49
Maximum (2008):			24.86
Minimum (2008):			20.00
Close (3/31/08):			21.41

Dividends:

Year paid	Ch$/share		% of previous year earnings
2005:		1.05		100	%
2006:		0.83		65	%
2007:		0.99		65	%
2008:		1.06		65	%

Investor Relations Department

Bandera 140 19^th Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 7: INSTITUTIONAL BACKGROUND

As per latest public records published by the Superintendency of Banks of Chile for June 2008, Banco Santander Chile was the largest bank in terms of loans and deposits. The Bank has the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s, A+ by Fitch and A2 by Moody’s, which are the same ratings assigned to the Republic of Chile. The stock is traded on the New York Stock Exchange (NYSE: SAN) and the Santiago Stock Exchange (SSE: Bsantander). The Bank’s main shareholder is Santander, which controls 76.91% of Banco Santander Chile.

Santander (SAN.MC, STD.N) is the largest bank in the euro zone by market capitalization and fifth in the world by profit. Founded in 1857, Santander has EUR 912,915 million in assets and EUR 1,063,892 million in managed funds, 65 million customers, 11,178 branches and a presence in 40 countries. It is the largest financial group in Spain and Latin America, and is the sixth largest bank in the United Kingdom, through its Abbey subsidiary, and is the third largest banking group in Portugal. Through Santander Consumer Finance, it also operates a leading consumer finance company in 12 European countries (Germany, Italy and Spain, among others) and the United States. In 2007, Santander registered €9,060 million in net attributable profits, an increase of 19% from the previous year.

In Latin America, Santander manages over US$200 billion in business volume (loans, deposits, mutual funds, pension funds and managed funds) through 4,498 offices. In 2007, Santander reported $3,648 million in net attributable income in Latin America, 27% higher than the previous year.

Investor Relations Department

Bandera 140 19^th Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 1: BALANCE SHEET

Unaudited Balance Sheet	Jun-08			Jun-08			Mar-08			Jun-07			June 2008 / 2007			June / March 2008
Assets	US$ths			Ch$ million nominal									% Chg.
										(Reclassified)
Cash and balances from Central Bank		2,461,524			1,280,337			647,473			861,227			48.7	%		97.7	%
Funds to be cleared		937,423			487,591			626,731			361,098			35.0	%		(22.2	)%
Financial assets held for trading		1,718,649			893,938			715,729			764,369			17.0	%		24.9	%
Investment collateral under agreements to repurchase		22,488			11,697			4,655			31,112			(62.4	)%		151.3	%
Derivatives		2,371,596			1,233,562			1,427,176			419,417			194.1	%		(13.6	)%
Interbank loans		289,164			150,406			116,991			350,393			(57.1	)%		28.6	%
Loans, net of reserves for loan losses		24,917,572			12,960,626			12,191,080			10,887,018			19.0	%		6.3	%
Available-for-sale financial assets		2,076,779			1,080,216			1,457,900			673,992			60.3	%		(25.9	)%
Held-to-maturity investments		-			-			-			-
Investments in other companies		13,198			6,865			6,181			5,707			20.3	%		11.1	%
Intangible assets		118,157			61,458			58,071			49,856			23.3	%		5.8	%
Fixed assets		478,537			248,906			247,348			228,351			9.0	%		0.6	%
Current tax assets		34,268			17,824			4,229			878			1930.1	%		321.5	%
Deferred tax assets		120,585			62,721			57,386			46,808			34.0	%		9.3	%
Other assets		1,140,649			593,297			656,982			416,592			42.4	%		(9.7	)%
Total Assets		36,700,588			19,089,444			18,217,932			15,096,818			26.4	%		4.8	%

Liabilities and Equity
Total non-interest bearing deposits		6,144,319			3,195,906			2,773,548			2,591,979			23.3	%		15.2	%
Funds to be cleared		572,175			297,611			381,921			202,897			46.7	%		(22.1	)%
Investments sold under agreements to repurchase		568,105			295,494			92,583			261,046			13.2	%		219.2	%
Time deposits and savings accounts		16,131,076			8,390,418			8,407,623			7,343,085			14.3	%		(0.2	)%
Derivatives		2,079,794			1,081,784			1,540,408			365,167			196.2	%		(29.8	)%
Deposits from credit institutions		2,893,790			1,505,176			1,013,573			1,168,506			28.8	%		48.5	%
Marketable debt securities		4,623,767			2,405,006			2,196,889			1,708,506			40.8	%		9.5	%
Other obligations		265,669			138,185			86,697			52,409			163.7	%		59.4	%
Current tax liabilities		1,532			797			3,247			21,834			(96.3	)%		(75.5	)%
Deferred tax liability		45,274			23,549			14,321			476			4847.3	%		64.4	%
Provisions		171,052			88,971			151,109			38,359			131.9	%		(41.1	)%
Other liabilities		563,985			293,351			136,745			96,616			203.6	%		114.5	%
Total Liabilities		34,060,538			17,716,248			16,798,664			13,850,880			27.9	%		5.5	%

Equity
Capital		1,573,682			818,535			818,535			761,853			7.4	%		0.0	%
Reserves		171,217			89,057			58,797			65,096			36.8	%		51.5	%
Unrealized gain (loss) Available-for-sale financial assets		(88,245	)		(45,900	)		(21,155	)		(4,445	)		932.6	%		117.0	%
Retained Earnings:		-			0			-			-
Retained earnings previous periods		732,553			381,030			581,651			252,872			50.7	%		(34.5	)%
Net income		296,234			154,083			75,643			152,675			0.9	%		103.7	%
Provision for mandatory dividend		(88,870	)		(46,225	)		(115,288	)		0
Minority Interest		43,481			22,616			21,085			17,887			26.4	%		7.3	%
Total Equity		2,640,051			1,373,196			1,419,268			1,245,938			10.2	%		(3.2	)%
Total Liabilities and Equity		36,700,588			19,089,444			18,217,932			15,096,818			26.4	%		4.8	%

2007 figures have been re-categorized under the new format in order to make them more comparable, but the modification regarding minimum dividends has not been made to historical shareholders’ equity. See Annex 7 of this report for an explanation of the main changes introduced.

Please note that this information is provided for comparative purposes only and that this re-categorization of line items may undergo further changes during the year and, therefore, historical figures, including financial ratios, presented in this report may not be entirely comparable to future figures presented by the Bank. Re-classified historical figures have not been audited.

Investor Relations Department

Bandera 140 19^th Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 2 : YTD INCOME STATEMENT

YTD Income Statement Unaudited	Jun-08			Jun-08			Jun-07			June 2008 / 2007
	US$ths.			Ch$ million nominal						% Chg.
							(reclassified)
Interest revenue		1,723,588			896,507			638,400			40.4	%
Interest expense		(934,637	)		(486,142	)		(322,271	)		50.8	%
Net interest revenue		788,951			410,365			316,129			29.8	%
Fee income		258,360			134,384			116,537			15.3	%
Fee expense		(47,783	)		(24,854	)		(20,820	)		19.4	%
Net fee income		210,577			109,530			95,717			14.4	%
Net gains from mark-to-market and trading		143,227			74,498			56,119			32.8	%
Exchange differences, net		(75,347	)		(39,191	)		11,682			(435.5	)%
Total market related income		67,880			35,307			67,801			(47.9	)%
Other operating income		27,487			14,297			12,732			12.3	%
Total operating income		1,094,895			569,499			492,379			15.7	%
Personnel expenses		(184,833	)		(96,139	)		(80,260	)		19.8	%
Administrative expenses		(155,088	)		(80,667	)		(72,196	)		11.7	%
Depreciation and amortization		(47,203	)		(24,552	)		(19,406	)		26.5	%
Other operating expenses		(38,757	)		(20,159	)		(17,771	)		13.4	%
Total operating expenses		(425,879	)		(221,517	)		(189,633	)		16.8	%
Provision expense		(252,438	)		(131,303	)		(104,340	)		25.8	%
Net operating income		416,577			216,679			198,406			9.2	%
Income attributable to investments in other companies		1,765			918			(595	)		(254.3	)%
Price level restatement		(60,405	)		(31,419	)		(15,782	)		99.1	%
Net income before taxes		357,937			186,178			182,030			2.3	%
Income tax		(57,836	)		(30,083	)		(28,533	)		5.4	%
Net income from ordinary activities		300,101			156,095			153,497			1.7	%
Net income discontinued operations		0			0			0
Net income attributable to:
Minority interest		3,868			2,012			822			144.9	%
Net income attributable to shareholders		296,233			154,083			152,675			0.9	%

Investor Relations Department

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email: rmorenoh@santander.cl

ANNEX 3 : QUARTERLY INCOME STATEMENT

Unaudited Quarterly Income Statement