|
Form 20-F
|
x
|
|
Form 40-F
|
o
|
|
|
Yes
|
o
|
|
No
|
x
|
|
|
Yes
|
o
|
|
No
|
x
|
|
|
Yes
|
o
|
|
No
|
x
|
|
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)
|
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
|
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 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
·
|
Increasing
spreads.
|
Investor
Relations Department
|
2
|
Bandera
140 19th
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.
|
Investor
Relations Department
|
3
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
Investor
Relations Department
|
4
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
Investor
Relations Department
|
5
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
Loans
|
Quarter
ended,
|
%
Change
|
||||||||||||||
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
|
%
|
Investor
Relations Department
|
6
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
%
|
Investor
Relations Department
|
7
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
%
|
|
Investor
Relations Department
|
8
|
Bandera
140 19th
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.
|
·
|
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.
|
Investor
Relations Department
|
9
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
%
|
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
|
%
|
Investor
Relations Department
|
10
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
Investor
Relations Department
|
11
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
%
|
Investor
Relations Department
|
12
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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.
|
Investor
Relations Department
|
13
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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).
|
Investor
Relations Department
|
14
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
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
|
)%
|
Investor
Relations Department
|
15
|
Bandera
140 19th
Floor, Santiago, Chile, Tel: 562-320-8284, fax:
562-671-6554,
|
|
email:
rmorenoh@santander.cl
|
Shareholders'
Equity
|
Quarter
|
Change %
|
||||||||||||||
(Ch$ million)
|
Jun-08
|
Mar-08
|
Jun-07
(reclassified)
|
June 08 / 07
|
June 08 /
Mar. 08
|
|||||||||||
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
|
)%
|
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
|
%
|
Investor
Relations Department
Bandera
140 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
16
|
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
|
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 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
17
|
ADR
price (US$) 2008
|
||||
Year-end
2007:
|
50.99
|
|||
Maximum
(2008):
|
54.60
|
|||
Minimum
(2008):
|
41.78
|
|||
Close
(3/31/08):
|
43.01
|
P/E
12 month trailing:
|
13.0
|
|||
P/BV:
|
2.94
|
|||
Dividend
yield*:
|
4.5
|
%
|
Local
share price (Ch$) 2008
|
||||
Year-end
2007:
|
24.49
|
|||
Maximum
(2008):
|
24.86
|
|||
Minimum
(2008):
|
20.00
|
|||
Close
(3/31/08):
|
21.41
|
Year
paid
|
Ch$/share
|
% of previous year
earnings
|
|||||
2005:
|
1.05
|
100
|
%
|
||||
2006:
|
0.83
|
65
|
%
|
||||
2007:
|
0.99
|
65
|
%
|
||||
2008:
|
1.06
|
65
|
%
|
Investor
Relations Department
Bandera
140 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
18
|
Investor
Relations Department
Bandera
140 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
19
|
Jun-08
|
Jun-08
|
Mar-08
|
Jun-07
|
June 2008 /
2007
|
June /
March 2008
|
||||||||||||||
Assets
|
US$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
|
%
|
Investor
Relations Department
Bandera
140 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
20
|
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
Bandera
140 19th
Floor, Santiago, Chile, Tel: ###-##-####, fax: 562-671-6554,
email:
rmorenoh@santander.cl
|
21
|
Unaudited
Quarterly Income Statement
|