Banco Santander Chile
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Santander Chile Bank
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(Translation of Registrant’s Name into English)
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Bandera 140
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Santiago, Chile
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(Address of principal executive office)
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Form 20-F
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x
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Form 40-F
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o
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Yes
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o
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No
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x
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Yes
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o
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No
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x
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Yes
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o
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No
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x
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Item
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1.
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1Q110 Earnings Release (Chilean Bank GAAP)
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2.
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Financial Statements in Spanish as of March 31, 2011
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3.
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Translation of Material Events
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BANCO SANTANDER-CHILE
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||
By:
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/s/
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Name:
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Juan Pedro Santa María
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Title:
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General Counsel
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SECTION
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PAGE
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SECTION 1: SUMMARY OF RESULTS
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2
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SECTION 2: BALANCE SHEET ANALYSIS
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6
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SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT
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9
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SECTION 4: CREDIT RISK RATINGS
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16
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SECTION 5: SHARE PERFORMANCE
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17
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ANNEX 1: BALANCE SHEET
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18
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ANNEX 2: QUARTERLY INCOME STATEMENTS
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19
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ANNEX 3: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION
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20
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CONTACT INFORMATION
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Robert Moreno
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Santiago, Chile
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Manager, Investor Relations Department
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Tel: (562) 320-8284
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Banco Santander Chile
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Fax: (562) 671-6554
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Bandera 140 Piso 19
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Email: rmorenoh@santander.cl
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Website: www.santander.cl
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Santander Chile: Market Share, %
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||||||||||
Market Share
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Chg. YoY (bp)
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|||||||||
March 11, %
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as of 3/11
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|||||||||
Loans
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21.6 | +130 | ||||||||
Individual
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25.1 | +60 | ||||||||
- Consumer and Credit
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27.7 | +140 | ||||||||
- Mortgage
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23.7 | +0 | ||||||||
Companies*
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19.4 | +180 |
Operating income, net of provisions and costs
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||||||||||||
(Ch$ million)
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1Q11 |
YoY Chg.
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QoQ Chg.
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|||||||||
Net interest income
|
228,683 | (0.3 | )% | (1.4 | )% | |||||||
Provision expense**
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(48,674 | ) | (31.9 | )% | (22.5 | )% | ||||||
Net interest income, net of provision expense
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180,009 | 14.0 | % | 6.5 | % | |||||||
Fee income
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71,389 | 14.5 | % | 2.5 | % | |||||||
Financial transactions, net
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26,193 | (11.4 | )% | 33.2 | % | |||||||
Operating expenses
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(115,688 | ) | 11.2 | % | (0.6 | )% | ||||||
Gross income, net of provisions & costs
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161,903 | 11.0 | % | 14.1 | % |
Quarter
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Change %
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|||||||||||||||||||
(Ch$ million)
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1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
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|||||||||||||||
Net interest income
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228,683 | 231,865 | 229,398 | (0.3 | )% | (1.4 | )% | |||||||||||||
Fee income
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71,389 | 69,637 | 62,351 | 14.5 | % | 2.5 | % | |||||||||||||
Core revenues
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300,072 | 301,502 | 291,749 | 2.9 | % | (0.5 | )% | |||||||||||||
Financial transactions, net
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26,193 | 19,661 | 29,573 | (11.4 | )% | 33.2 | % | |||||||||||||
Provision expense1
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(48,674 | ) | (102,637 | ) | (71,489 | ) | (31.9 | )% | (52.6 | )% | ||||||||||
Operating expenses
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(115,688 | ) | (116,380 | ) | (103,999 | ) | 11.2 | % | (0.6 | )% | ||||||||||
Operating income, net of provisions and costs
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161,903 | 102,146 | 145,834 | 11.0 | % | 58.5 | % | |||||||||||||
Other operating & Non-op. Income
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(45,605 | ) | (8,274 | ) | (26,730 | ) | 70.6 | % | 451.2 | % | ||||||||||
Net income attributable to shareholders
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116,298 | 93,872 | 119,104 | (2.4 | )% | 23.9 | % | |||||||||||||
Net income/share (Ch$)
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0.62 | 0.50 | 0.63 | (2.4 | )% | 23.9 | % | |||||||||||||
Net income/ADR (US$)2
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1.33 | 1.11 | 1.25 | 6.6 | % | 20.4 | % | |||||||||||||
Total loans3
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16,774,368 | 15,657,557 | 14,043,570 | 19.4 | % | 7.1 | % | |||||||||||||
Customer funds
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15,866,754 | 14,683,342 | 14,344,713 | 10.6 | % | 8.1 | % | |||||||||||||
Shareholders’ equity
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1,905,690 | 1,831,798 | 1,683,104 | 13.2 | % | 4.0 | % | |||||||||||||
Net interest margin
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5.1 | % | 5.4 | % | 5.8 | % | ||||||||||||||
Efficiency ratio
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37.5 | % | 34.8 | % | 32.9 | % | ||||||||||||||
Return on average equity4
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25.0 | % | 20.8 | % | 28.6 | % | ||||||||||||||
NPL5 / Total loans
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2.5 | % | 2.7 | % | 2.7 | % | ||||||||||||||
Coverage NPLs6
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118.2 | % | 115.6 | % | 97.4 | % | ||||||||||||||
PDLs/ Total loans
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1.29 | % | 1.32 | % | 1.40 | % | ||||||||||||||
Coverage PDLs7
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226.33 | % | 233.10 | % | 190.48 | % | ||||||||||||||
Risk index8
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2.92 | % | 3.08 | % | 2.67 | % | ||||||||||||||
BIS ratio
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14.1 | % | 14.5 | % | 14.7 | % | ||||||||||||||
Branches
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506 | 504 | 498 | |||||||||||||||||
ATMs
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2,017 | 2,018 | 1,856 | |||||||||||||||||
Employees
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11,115 | 11,001 | 11,155 |
1.
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Beginning in January 2011, new provisioning guidelines defined by the Superintendency of Banks (SBIF) - the industry supervisor - for loans analyzed on an individual basis came into effect. This encompasses mainly large commercial, leasing and factoring loans. These regulations had an initial cost of implementation of Ch$39,800 million. As per indications of the SBIF, this one time effect was recognized in December 2010 as an Other operating expenses in the income statement and as a Non-credit provision in the Bank’s Liabilities. As stated in the 4Q10 Earnings Report, the SBIF also indicated that in 2011, this liability must be shifted to Loan loss reserves in the Balance Sheet and Provision Expenses in the Income Statement with no impact to net income. The Bank also reclassified Ch$ 1,302 million in provisions for off balance sheet contingent loans recognized as other operating expenses and as a Non-credit provision in the Bank’s liabilities in March 2010 figures, also with no impact on net income.
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2.
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The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate. Earnings per ADR was calculated using an exchange rate of Ch$482.08 per US$.
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3.
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Excludes interbank loans.
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4.
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Annualized quarterly Net income attributable to shareholders / Average equity attributable to shareholders.
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5.
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NPLs: Non-performing loans; full balance of loans with one installment 90 days or more overdue.
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6.
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Loan loss allowances / NPLs.
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7.
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PDLs: Past due loans; all loan installments that are more than 90 days overdue.
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8.
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Risk Index: Loan loss allowances / Total loans; measures the percentage of loans the Bank’s must provision for given its internal models and the Superintendency of Banks guidelines.
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Loans
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Quarter ended,
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% Change
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||||||||||||||||||
(Ch$ million)
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Mar-11
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Dec-10
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Mar-10
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Mar. 11 / 10
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Mar. 11 /
Dec. 10
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|||||||||||||||
Total loans to individuals1
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8,652,205 | 8,407,416 | 7,411,686 | 16.7 | % | 2.9 | % | |||||||||||||
Total loans to individuals1
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8,652,205 | 8,407,416 | 7,411,686 | 16.7 | % | 2.9 | % | |||||||||||||
Consumer loans
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2,815,118 | 2,700,791 | 2,303,983 | 22.2 | % | 4.2 | % | |||||||||||||
Residential mortgage loans
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4,758,712 | 4,651,136 | 4,219,733 | 12.8 | % | 2.3 | % | |||||||||||||
SMEs
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2,467,951 | 2,375,192 | 2,143,885 | 15.1 | % | 3.9 | % | |||||||||||||
Total retail lending
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11,120,156 | 10,782,608 | 9,555,571 | 16.4 | % | 3.1 | % | |||||||||||||
Institutional lending
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352,593 | 331,153 | 313,079 | 12.6 | % | 6.5 | % | |||||||||||||
Middle-Market & Real estate
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3,562,558 | 3,288,107 | 2,907,944 | 22.5 | % | 8.3 | % | |||||||||||||
Corporate
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1,757,732 | 1,293,321 | 1,279,965 | 37.3 | % | 35.9 | % | |||||||||||||
Total loans 2
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16,774,368 | 15,657,557 | 14,043,570 | 19.4 | % | 7.1 | % |
-
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Consumer loans increased 4.2% QoQ increase and 22.2% YoY. This positive evolution was driven by credit cards loans that expanded 7.1% QoQ (38.7% YoY) as the Bank’s market share in the credit card business continues to rise.
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-
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Residential mortgage loans increased 2.3% QoQ (12.8% YoY), as long-term rates remained attractive and demand for purchasing housing continues to rise.
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-
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Lending to SMEs (defined as companies that sell less than Ch$1,200 million per year) increased 3.9% QoQ (15.1% YoY), reflecting the strength of economic growth and the Bank’s focus on this high yielding segment.
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Funding
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Quarter ended,
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% Change
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||||||||||||||||||
(Ch$ million)
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Mar-11
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Dec-10
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Mar-10
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Mar. 11 / 10
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Mar. 11 /
Dec. 10
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|||||||||||||||
Demand deposits
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4,315,563 | 4,236,434 | 3,890,230 | 10.9 | % | 1.9 | % | |||||||||||||
Time deposits
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8,408,818 | 7,258,757 | 6,818,939 | 23.3 | % | 15.8 | % | |||||||||||||
Total deposits
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12,724,381 | 11,495,191 | 10,709,169 | 18.8 | % | 10.7 | % | |||||||||||||
Mutual funds
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3,142,373 | 3,188,151 | 3,635,544 | (13.6 | )% | (1.4 | )% | |||||||||||||
Total customer funds
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15,866,754 | 14,683,342 | 14,344,713 | 10.6 | % | 8.1 | % | |||||||||||||
Loans to deposits1
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96.9 | % | 99.8 | % | 104.3 | % |
Quarter ended,
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Change %
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|||||||||||||||||||
(Ch$ million)
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Mar-11
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Dec-10
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Mar-10
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Mar. 11 / 10
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Mar. 11 /
Dec. 10
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|||||||||||||||
891,303 | 891,303 | 891,303 | 0.0 | % | 0.0 | % | ||||||||||||||
Reserves
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51,539 | 51,539 | 51,539 | (0.0 | )% | (0.0 | )% | |||||||||||||
Unrealized gain (loss) Available-for-sale financial assets
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(12,697 | ) | (5,180 | ) | (32,620 | ) | (61.1 | )% | 145.1 | % | ||||||||||
Retained Earnings:
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975,545 | 894,136 | 772,882 | 26.2 | % | 9.1 | % | |||||||||||||
Retained earnings previous periods
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1,037,283 | 560,128 | 818,885 | 26.7 | % | 85.2 | % | |||||||||||||
Net income
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116,298 | 477,155 | 119,104 | (2.4 | )% | (75.6 | )% | |||||||||||||
Provision for mandatory dividend
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(178,036 | ) | (143,147 | ) | (165,107 | ) | 7.8 | % | 24.4 | % | ||||||||||
Equity attributable to shareholders
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1,905,690 | 1,831,798 | 1,683,104 | 13.2 | % | 4.0 | % | |||||||||||||
Minority Interest
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34,486 | 31,809 | 29,942 | 15.2 | % | 8.4 | % | |||||||||||||
Total Equity
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1,940,176 | 1,863,607 | 1,713,046 | 13.3 | % | 4.1 | % | |||||||||||||
ROAE
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25.0 | % | 20.8 | % | 28.6 | % |
Capital Adequacy
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Quarter ended,
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Change %
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||||||||||||||||||
(Ch$ million)
|
Mar-11
|
Dec-10
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Mar-10
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Mar. 11 / 10
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Mar. 11 /
Dec. 10
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|||||||||||||||
Tier I
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1,905,690 | 1,831,799 | 1,683,103 | 13.2 | % | 4.0 | % | |||||||||||||
Tier II
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642,221 | 672,099 | 599,353 | 7.2 | % | (4.4 | )% | |||||||||||||
Regulatory capital
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2,547,912 | 2,503,898 | 2,282,455 | 11.6 | % | 1.8 | % | |||||||||||||
Risk weighted assets
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18,013,990 | 17,245,265 | 15,513,732 | 16.1 | % | 4.5 | % | |||||||||||||
Tier I (Core capital) ratio
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10.6 | % | 10.6 | % | 10.8 | % | ||||||||||||||
BIS ratio
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14.1 | % | 14.5 | % | 14.7 | % |
Quarter
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Change %
|
|||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 |
1Q11 /
1Q10
|
1Q 11 /
4Q10
|
|||||||||||||||
Interest income
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378,417 | 367,381 | 321,238 | 17.8 | % | 3.0 | % | |||||||||||||
Interest expense
|
(149,734 | ) | (135,516 | ) | (91,840 | ) | 63.0 | % | 10.5 | % | ||||||||||
Net interest income
|
228,683 | 231,865 | 229,398 | (0.3 | )% | (1.4 | )% | |||||||||||||
Average interest-earning assets
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17,866,010 | 17,176,435 | 15,776,237 | 13.2 | % | 4.0 | % | |||||||||||||
Average loans
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16,150,015 | 15,470,132 | 13,879,173 | 16.4 | % | 4.4 | % | |||||||||||||
Interest earning asset yield1
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8.5 | % | 8.6 | % | 8.1 | % | ||||||||||||||
Cost of funds2
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3.2 | % | 3.2 | % | 2.2 | % | ||||||||||||||
Net interest margin (NIM)3
|
5.1 | % | 5.4 | % | 5.8 | % | ||||||||||||||
Net interest margin net of provisions4
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4.0 | % | 3.9 | % | 4.0 | % | ||||||||||||||
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets
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34.3 | % | 34.1 | % | 33.9 | % | ||||||||||||||
Quarterly inflation rate5
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0.57 | % | 0.54 | % | 0.27 | % | ||||||||||||||
Avg. Central Bank reference rate
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4.00 | % | 3.25 | % | 0.50 | % | ||||||||||||||
Avg. 10 year Central Bank yield (real)
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3.09 | % | 3.01 | % | 3.14 | % |
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(i)
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improved asset quality. The Bank’s net interest margin net of provision expense reached 4.0% in 1Q11 compared to 3.9% in 4Q10 and 4.0% in 1Q10. Net interest income net of provision expense increased 6.5% QoQ and 13.1% YoY. As a result, the increase in funding costs has been offset by the decrease in provision expense;
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(ii)
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stabilization of the Bank’s funding costs. The Bank’s cost of funds increased 100 bp YoY to 3.2% in 1Q11, although this rise was lower than the rise in market rates. QoQ the Bank’s cost of funds remained stable as the Bank increased its cheaper core deposit base in the quarter (See Section 2: Funding) and continued to extend the duration of its institutional funding base in order to minimize negative impacts of rising short-term rates on our net interest margin. The ratio of average equity plus average demand deposits also improved to 34.3% in 1Q11 compared to 34.1% in 4Q10 and 33.9% in 1Q10;
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(iii)
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loan growth and yields; The Bank’s interest earning asset yields (interest income divided by average interest earning assets) have been gradually rising. In 1Q11, interest earning asset yields increased by 40 basis points YoY to 8.5% as our interest earning assets incorporate the rising interest rates; and
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(iv)
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the positive impact on margins of higher inflation forecast for the rest of 2011, as the Bank has more assets than liabilities linked to inflation.
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Quarter
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Change %
|
|||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Gross provisions
|
(131 | ) | (53,746 | ) | (27,303 | ) | (99.5 | )% | (99.8 | )% | ||||||||||
Charge-offs
|
(54,178 | ) | (55,815 | ) | (52,158 | ) | 3.9 | % | (2.9 | )% | ||||||||||
Gross provisions and charge-offs
|
(54,309 | ) | (109,561 | ) | (79,461 | ) | (31.7 | )% | (50.4 | )% | ||||||||||
Loan loss recoveries
|
5,635 | 6,924 | 7,972 | (29.3 | )% | (18.6 | )% | |||||||||||||
Net provisions for loan losses1
|
(48,674 | ) | (102,637 | ) | (71,489 | ) | (31.9 | )% | (52.6 | )% | ||||||||||
Total loans2
|
16,774,368 | 15,657,557 | 14,043,570 | 19.4 | % | 7.1 | % | |||||||||||||
Loan loss reserves1
|
489,034 | 481,581 | 375,366 | 30.3 | % | 1.5 | % | |||||||||||||
Non-performing loans3 (NPLs)
|
413,775 | 416,739 | 385,211 | 7.4 | % | (0.7 | )% | |||||||||||||
Risk Index4
|
2.92 | % | 3.08 | % | 2.67 | % | ||||||||||||||
NPL / Total loans
|
2.47 | % | 2.66 | % | 2.74 | % | ||||||||||||||
Coverage ratio of NPLs5
|
118.2 | % | 115.6 | % | 97.4 | % |
1.
|
Provision for loan losses and loan loss reserves for 1Q10 includes a reclassification of Ch$1,302 million of provisions for off-balance sheet contingent loans from Other operating expenses and Other Provisions to Loan loss reserves and Provision Expenses. 4Q10 Provision for loan losses and loan loss reserves includes a reclassification of Ch$39,800 million of provisions for commercial loans recognized in line with the change in provisioning models for commercial loans analyzed on an individual basis. This charge was reclassified from Other operating expenses and Other Provisions to Loan loss reserves and Provision Expenses.
|
2.
|
Excludes interbank loans.
|
3.
|
NPL: Non-performing loans; full balance of loans with one installment 90 days or more overdue.
|
4.
|
Risk Index: Loan loss reserves / Total loans; measures the percentage of loans the Bank’s must provision for given its internal models and the Superintendency of Banks guidelines.
|
5.
|
Loan loss reserves / NPLs.
|
Net provisions by segment
|
Quarter
|
Change %
|
||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Commercial loans1,2
|
(4,683 | ) | (57,605 | ) | (23,231 | ) | (79.8 | )% | (91.9 | )% | ||||||||||
Residential mortgage loans
|
(5,222 | ) | (6,356 | ) | (5,197 | ) | 0.5 | % | (17.8 | )% | ||||||||||
Consumer loans2
|
(38,769 | ) | (38,676 | ) | (43,061 | ) | (10.0 | )% | 0.2 | % | ||||||||||
Net provisions for loan losses
|
(48,674 | ) | (102,637 | ) | (71,489 | ) | (31.9 | )% | (52.6 | )% |
1.
|
4Q10 figures includes Ch$39,800 million as a result of the
|
2.
|
Includes net provision expenses for interbank loans.
|
3.
|
Includes provision reversal for contingent loans, which is included in Other operating income in 3Q10.
|
Fee Income
|
Quarter
|
Change %
|
||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 |
1Q11 /
1Q10
|
1Q 11 /
4Q10
|
|||||||||||||||
Collection fees
|
15,488 | 16,764 | 13,812 | 12.1 | % | (7.6 | )% | |||||||||||||
Credit, debit & ATM card fees
|
14,786 | 14,677 | 14,351 | 3.0 | % | 0.7 | % | |||||||||||||
Asset management
|
10,953 | 10,841 | 9,391 | 16.6 | % | 1.0 | % | |||||||||||||
Checking accounts & lines of credit
|
10,178 | 10,273 | 11,265 | (9.6 | )% | (0.9 | )% | |||||||||||||
Insurance brokerage
|
8,815 | 10,032 | 5,106 | 72.6 | % | (12.1 | )% | |||||||||||||
Guarantees, pledges and other contingent operations
|
5,818 | 5,501 | 5,829 | (0.2 | )% | 5.8 | % | |||||||||||||
Fees from brokerage and custody of securities
|
3,262 | 2,698 | 1,906 | 71.1 | % | 20.9 | % | |||||||||||||
Other Fees
|
2,089 | (1,149 | ) | 691 | 202.3 | % | — | % | ||||||||||||
Total fees
|
71,389 | 69,637 | 62,351 | 14.5 | % | 2.5 | % |
Results from Financial Transactions*
|
Quarter
|
Change %
|
||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Net income from financial operations
|
49,375 | (13,191 | ) | 52,092 | (5.2 | )% | (474.3 | )% | ||||||||||||
Net foreign exchange income
|
(23,182 | ) | 32,852 | (22,519 | ) | 2.9 | % | (170.6 | )% | |||||||||||
Net results from financial transactions
|
26,193 | 19,661 | 29,573 | (11.4 | )% | 33.2 | % |
*
|
These results mainly include the mark-to-market of the available for sale investment portfolio, realized and unrealized gains of financial investments held for trading, the interest revenue generated by the held for trading portfolio, gains or losses from the sale of charged-off loans and the mark-to-market of derivatives. The results recorded as Exchange differences, net mainly includes the translation gains or losses of assets and a liability denominated in foreign currency.
|
Results from Financial Transactions
|
Quarter
|
Change %
|
||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Santander Global Connect and other client activities
|
16,040 | 13,585 | 13,029 | 23.1 | % | 18.1 | % | |||||||||||||
Market-making
|
9,028 | 1,560 | 6,304 | 43.2 | % | 478.7 | % | |||||||||||||
Client treasury services
|
25,068 | 15,145 | 19,333 | 29.7 | % | 65.5 | % | |||||||||||||
Proprietary trading
|
2,971 | (1,018 | ) | 7,067 | (58.0 | )% | (391.8 | )% | ||||||||||||
Sale of loans and charged-off loans
|
1,081 | 8,375 | (43 | ) | — | % | (87.1 | )% | ||||||||||||
Financial Management (ALCO) and other results
|
(2,927 | ) | (2,841 | ) | 3,216 | — | % | 3.0 | % | |||||||||||
Non-client treasury services
|
1,126 | 4,516 | 10,240 | (89.0 | )% | (75.1 | )% | |||||||||||||
Net results from financial transactions
|
26,193 | 19,661 | 29,573 | (11.4 | )% | 33.2 | % |
Operating Expenses
|
Quarter
|
Change %
|
||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Personnel expenses
|
(62,841 | ) | (65,344 | ) | (55,589 | ) | 13.0 | % | (3.8 | )% | ||||||||||
Administrative expenses
|
(39,502 | ) | (37,600 | ) | (36,053 | ) | 9.6 | % | 5.1 | % | ||||||||||
Depreciation and amortization
|
(13,340 | ) | (13,176 | ) | (12,341 | ) | 8.1 | % | 1.2 | % | ||||||||||
Impairment
|
(5 | ) | (260 | ) | (16 | ) | (68.8 | )% | (98.1 | )% | ||||||||||
Operating expenses
|
(115,688 | ) | (116,380 | ) | (103,999 | ) | 11.2 | % | (0.6 | )% | ||||||||||
Efficiency ratio1
|
37.5 | % | 34.8 | % | 32.9 | % |
1.
|
Operating expenses / Operating income. Operating income = Net interest income + Net fee income+ Net results from Financial transactions + Other operating income and expenses.
|
Quarter
|
Change %
|
|||||||||||||||||||
(Ch$ million)
|
1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 |
1Q 11 /
4Q10
|
|||||||||||||||
Other operating income
|
2,550 | 22,824 | 5,738 | (55.6 | )% | (88.8 | )% | |||||||||||||
Other operating expenses1
|
(20,613 | ) | (9,989 | ) | (10,927 | ) | 88.6 | % | 106.4 | % | ||||||||||
Other operating income, net
|
(18,063 | ) | 12,835 | (5,189 | ) | 248.1 | % | — | % | |||||||||||
Income attributable to investments in other companies
|
575 | (4 | ) | 120 | 379.2 | % | — | % | ||||||||||||
Income tax
|
(26,501 | ) | (18,927 | ) | (21,760 | ) | 21.8 | % | 40.0 | % | ||||||||||
Income tax rate
|
18.4 | % | 16.5 | % | 15.5 | % |
1.
|
The one-time charge of Ch$39,800 million recognized by the Bank in 4Q10 as part of the modification of provisioning models for commercial loans was reclassified to provision expense. See Provision Expense.
|
Moody’s
|
Rating
|
||
Foreign currency bank deposits
|
Aa3
|
||
Senior bonds
|
Aa3
|
||
Subordinated debt
|
A1 | ||
Bank Deposits in Local Currency
|
Aa3
|
||
Bank financial strength
|
B- | ||
Short-term deposits
|
P-1 |
Standard and Poor’s (Outlook Positive)
|
Rating
|
||
Long-term Foreign Issuer Credit
|
A+ | ||
Long-term Local Issuer Credit
|
A+ | ||
Short-term Foreign Issuer Credit
|
A-1 | ||
Short-term Local Issuer Credit
|
A-1 |
Fitch
|
Rating
|
||
Foreign Currency Long-term Debt
|
AA-
|
||
Local Currency Long-term Debt
|
AA-
|
||
Foreign Currency Short-term Debt
|
F1+ | ||
Local Currency Short-term Debt
|
F1+ | ||
Individual rating
|
B |
Local ratings
|
Fitch
Ratings
|
Feller
Rate
|
||
Shares
|
Level 2
|
1CN1
|
||
Short-term deposits
|
N1+ |
Level 1+
|
||
Long-term deposits
|
AAA
|
AAA
|
||
Mortgage finance bonds
|
AAA
|
AAA
|
||
Senior bonds
|
AAA
|
AAA
|
||
Subordinated bonds
|
AA
|
AA+
|
||
Outlook
|
Stable
|
Stable
|
ADR price (US$) 1Q11
|
||||
03/31/11:
|
86.75 | |||
Maximum (1Q11):
|
93.75 | |||
Minimum (1Q11):
|
76.06 |
P/E 12 month trailing*:
|
15.9 | |||
P/BV (03/31/11)**:
|
3.96 | |||
Dividend yield***:
|
3.7 | % |
*
|
Price as of March 31 / 12mth Earnings
|
**
|
Price as of March 31 / Book value as of 3/31/11
|
***
|
Based on closing price on record date of last dividend payment.
|
Local share price (Ch$) 1Q11
|
||||
03/31/11:
|
40.05 | |||
Maximum (2010):
|
43.65 | |||
Minimum (2010):
|
35.63 |
Dividends:
|
||||||||
Year paid
|
Ch$/share
|
% of previous year
earnings
|
||||||
2006:
|
0.83 | 65 | % | |||||
2007:
|
0.99 | 65 | % | |||||
2008:
|
1.06 | 65 | % | |||||
2009:
|
1.13 | 65 | % | |||||
2010:
|
1.37 | 60 | % | |||||
2011:
|
1.52 | 60 | % |
Unaudited Balance Sheet
|
Mar-11
|
Mar-11
|
Dec-10
|
Mar-10
|
Mar. 11 / 10
|
Mar. 11 / Dec. 10
|
||||||||||||||||||
|
US$ths
|
Ch$mn
|
% Chg.
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Cash and balances from Central Bank
|
4,688,602 | 2,238,573 | 1,762,198 | 1,526,810 | 46.6 | % | 27.0 | % | ||||||||||||||||
Funds to be cleared
|
1,222,373 | 583,622 | 374,368 | 345,521 | 68.9 | % | 55.9 | % | ||||||||||||||||
Financial assets held for trading
|
561,215 | 267,952 | 379,670 | 877,884 | (69.5 | )% | (29.4 | )% | ||||||||||||||||
Investment collateral under agreements to repurchase
|
25,213 | 12,038 | 170,985 | 3,679 | 227.2 | % | (93.0 | )% | ||||||||||||||||
Derivatives
|
2,948,868 | 1,407,937 | 1,624,378 | 1,465,832 | (3.9 | )% | (13.3 | )% | ||||||||||||||||
Interbank loans
|
119,160 | 56,893 | 69,672 | 47,738 | 19.2 | % | (18.3 | )% | ||||||||||||||||
Loans, net of reserves for loan losses
|
34,108,981 | 16,285,333 | 15,175,975 | 13,668,205 | 19.1 | % | 7.3 | % | ||||||||||||||||
Available-for-sale financial assets
|
3,478,366 | 1,660,746 | 1,473,980 | 1,572,839 | 5.6 | % | 12.7 | % | ||||||||||||||||
Held-to-maturity investments
|
- | - | - | - | ||||||||||||||||||||
Investments in other companies
|
16,381 | 7,821 | 7,275 | 7,095 | 10.2 | % | 7.5 | % | ||||||||||||||||
Intangible assets
|
153,859 | 73,460 | 77,990 | 72,290 | 1.6 | % | (5.8 | )% | ||||||||||||||||
Fixed assets
|
317,778 | 151,723 | 154,985 | 179,981 | (15.7 | )% | (2.1 | )% | ||||||||||||||||
Current tax assets
|
28,070 | 13,402 | 12,499 | 4,649 | 188.3 | % | 7.2 | % | ||||||||||||||||
Deferred tax assets
|
292,598 | 139,701 | 117,964 | 103,186 | 35.4 | % | 18.4 | % | ||||||||||||||||
Other assets
|
1,376,429 | 657,176 | 640,937 | 572,371 | 14.8 | % | 2.5 | % | ||||||||||||||||
Total Assets
|
49,337,893 | 23,556,377 | 22,042,876 | 20,448,080 | 15.2 | % | 6.9 | % | ||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Demand deposits
|
9,038,775 | 4,315,563 | 4,236,434 | 3,890,230 | 10.9 | % | 1.9 | % | ||||||||||||||||
Funds to be cleared
|
836,094 | 399,193 | 300,125 | 197,908 | 101.7 | % | 33.0 | % | ||||||||||||||||
Investments sold under agreements to repurchase
|
341,454 | 163,027 | 294,725 | 762,703 | (78.6 | )% | (44.7 | )% | ||||||||||||||||
Time deposits and savings accounts
|
17,611,934 | 8,408,818 | 7,258,757 | 6,818,939 | 23.3 | % | 15.8 | % | ||||||||||||||||
Derivatives
|
2,767,678 | 1,321,428 | 1,643,979 | 1,358,323 | (2.7 | )% | (19.6 | )% | ||||||||||||||||
Deposits from credit institutions
|
3,577,642 | 1,708,145 | 1,584,057 | 2,005,763 | (14.8 | )% | 7.8 | % | ||||||||||||||||
Marketable debt securities
|
9,311,765 | 4,445,902 | 4,190,888 | 2,872,100 | 54.8 | % | 6.1 | % | ||||||||||||||||
Other obligations
|
360,607 | 172,172 | 166,289 | 174,497 | (1.3 | )% | 3.5 | % | ||||||||||||||||
Current tax liabilities
|
4,187 | 1,999 | 1,293 | 74,440 | (97.3 | )% | 54.6 | % | ||||||||||||||||
Deferred tax liability
|
38,806 | 18,528 | 5,441 | 1,650 | 1022.9 | % | 240.5 | % | ||||||||||||||||
Provisions
|
533,798 | 254,862 | 235,953 | 265,070 | (3.9 | )% | 8.0 | % | ||||||||||||||||
Other liabilities
|
851,532 | 406,564 | 261,328 | 313,411 | 29.7 | % | 55.6 | % | ||||||||||||||||
Total Liabilities
|
45,274,272 | 21,616,201 | 20,179,269 | 18,735,034 | 15.4 | % | 7.1 | % | ||||||||||||||||
- | ||||||||||||||||||||||||
Equity
|
- | |||||||||||||||||||||||
Capital
|
1,866,799 | 891,303 | 891,303 | 891,303 | 0.0 | % | 0.0 | % | ||||||||||||||||
Reserves
|
107,946 | 51,539 | 51,539 | 51,539 | 0.0 | % | 0.0 | % | ||||||||||||||||
Unrealized gain (loss) Available-for-sale financial assets
|
(26,593 | ) | (12,697 | ) | (5,180 | ) | (32,620 | ) | (61.1 | )% | 145.1 | % | ||||||||||||
Retained Earnings:
|
2,043,240 | 975,545 | 894,136 | 772,882 | 26.2 | % | 9.1 | % | ||||||||||||||||
Retained earnings previous periods
|
2,172,548 | 1,037,283 | 560,128 | 818,885 | 26.7 | % | 85.2 | % | ||||||||||||||||
Net income
|
243,582 | 116,298 | 477,155 | 119,104 | (2.4 | )% | (75.6 | )% | ||||||||||||||||
Provision for mandatory dividend
|
(372,889 | ) | (178,036 | ) | (143,147 | ) | (165,107 | ) | 7.8 | % | 24.4 | % | ||||||||||||
Total Shareholders' Equity
|
3,991,392 | 1,905,690 | 1,831,798 | 1,683,104 | 13.2 | % | 4.0 | % | ||||||||||||||||
Minority Interest
|
72,230 | 34,486 | 31,809 | 29,942 | 15.2 | % | 8.4 | % | ||||||||||||||||
Total Equity
|
4,063,621 | 1,940,176 | 1,863,607 | 1,713,046 | 13.3 | % | 4.1 | % | ||||||||||||||||
Total Liabilities and Equity
|
49,337,893 | 23,556,377 | 22,042,876 | 20,448,080 | 15.2 | % | 6.9 | % |
Unaudited Quarterly Income Statement
|
1Q11 | 1Q11 | 4Q10 | 1Q10 | 1Q11 / 1Q10 | 1Q 11 / 4Q10 | ||||||||||||||||||
US$ths.
|
Ch$mn
|
% Chg.
|
||||||||||||||||||||||
Interest revenue
|
792,579 | 378,417 | 367,381 | 321,238 | 17.8 | % | 3.0 | % | ||||||||||||||||
Interest expense
|
(313,612 | ) | (149,734 | ) | (135,516 | ) | (91,840 | ) | 63.0 | % | 10.5 | % | ||||||||||||
Net interest income
|
478,967 | 228,683 | 231,865 | 229,398 | (0.3 | )% | (1.4 | )% | ||||||||||||||||
Fee income
|
191,094 | 91,238 | 90,837 | 79,159 | 15.3 | % | 0.4 | % | ||||||||||||||||
Fee expense
|
(41,573 | ) | (19,849 | ) | (21,200 | ) | (16,808 | ) | 18.1 | % | (6.4 | )% | ||||||||||||
Net fee income
|
149,521 | 71,389 | 69,637 | 62,351 | 14.5 | % | 2.5 | % | ||||||||||||||||
Net income from financial operations
|
103,414 | 49,375 | (13,191 | ) | 52,092 | (5.2 | )% | (474.3 | )% | |||||||||||||||
Net foreign exchange income
|
(48,554 | ) | (23,182 | ) | 32,852 | (22,519 | ) | 2.9 | % | (170.6 | )% | |||||||||||||
Total financial transactions, net
|
54,860 | 26,193 | 19,661 | 29,573 | (11.4 | )% | 33.2 | % | ||||||||||||||||
Other operating income
|
5,341 | 2,550 | 22,824 | 5,738 | (55.6 | )% | (88.8 | )% | ||||||||||||||||
Operating profit before loan losses
|
688,690 | 328,815 | 343,987 | 327,060 | 0.5 | % | (4.4 | )% | ||||||||||||||||
Provision expense
|
(101,946 | ) | (48,674 | ) | (102,637 | ) | (71,489 | ) | (31.9 | )% | (52.6 | )% | ||||||||||||
Total operating income net of interest, fee and provision expenses
|
586,744 | 280,141 | 241,350 | 255,571 | 9.6 | % | 16.1 | % | ||||||||||||||||
Personnel expenses
|
(131,618 | ) | (62,841 | ) | (65,344 | ) | (55,589 | ) | 13.0 | % | (3.8 | )% | ||||||||||||
Administrative expenses
|
353,180 | (39,502 | ) | (37,600 | ) | (36,053 | ) | 9.6 | % | 5.1 | % | |||||||||||||
Depreciation and amortization
|
(27,940 | ) | (13,340 | ) | (13,176 | ) | (12,341 | ) | 8.1 | % | 1.2 | % | ||||||||||||
Impairment
|
(10 | ) | (5 | ) | (260 | ) | (16 | ) | (68.8 | )% | (98.1 | )% | ||||||||||||
Operating expenses
|
(242,304 | ) | (115,688 | ) | (116,380 | ) | (103,999 | ) | 11.2 | % | (0.6 | )% | ||||||||||||
Other operating expenses
|
(43,173 | ) | (20,613 | ) | (9,989 | ) | (10,927 | ) | 88.6 | % | 106.4 | % | ||||||||||||
Total operating expenses
|
(285,477 | ) | (136,301 | ) | (126,369 | ) | (114,926 | ) | 18.6 | % | 7.9 | % | ||||||||||||
Net operating income
|
301,267 | 143,840 | 114,981 | 140,645 | 2.3 | % | 25.1 | % | ||||||||||||||||
Income attributable to investments in other companies
|
1,204 | 575 | (4 | ) | 120 | 379.2 | % | -- | % | |||||||||||||||
Net income before taxes
|
302,471 | 144,415 | 114,977 | 140,765 | 2.6 | % | 25.6 | % | ||||||||||||||||
Income tax
|
(55,505 | ) | (26,501 | ) | (18,927 | ) | (21,760 | ) | 21.8 | % | 40.0 | % | ||||||||||||
Net income from ordinary activities
|
246,966 | 117,914 | 96,050 | 119,005 | (0.9 | )% | 22.8 | % | ||||||||||||||||
Net income discontinued operations
|
0 | 0 | 0 | 0 | ||||||||||||||||||||
Net income attributable to:
|
||||||||||||||||||||||||
Minority interest
|
3,385 | 1,616 | 2,178 | (99 | ) | -1732.3 | % | (25.8 | )% | |||||||||||||||
Net income attributable to shareholders
|
243,582 | 116,298 | 93,872 | 119,104 | (2.4 | )% | 23.9 | % |
Mar-10
|
Jun-10
|
Sep-10
|
Dec-10
|
Mar-11
|
||||||||||||||||
(Ch$ millions)
|
||||||||||||||||||||
Loans
|
||||||||||||||||||||
Consumer loans
|
2,303,983 |