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

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.		3Q2011 Earnings Release
2.		9M 2011 Financial Statements

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BANCO SANTANDER-CHILE

By:	/s/
Name:	Juan Pedro Santa María
Title:	General Counsel

Date: November 4, 2011

BANCO SANTANDER CHILE

THIRD QUARTER 2011

EARNINGS REPORT

INDEX

SECTION	PAGE

SECTION 1: SUMMARY OF RESULTS	2

SECTION 2: BALANCE SHEET ANALYSIS	6

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT	9

SECTION 4: CREDIT RISK RATINGS	16

SECTION 5: SHARE PERFORMANCE	17

ANNEX 1: NEW PROVISIONING MODEL FOR RESIDENTIAL MORTGAGE LOANS	18

ANNEX 2: BALANCE SHEET	19

ANNEX 3: YEAR-TO-DATE INCOME STATEMENT	20

ANNEX 4: QUARTERLY INCOME STATEMENTS	21

ANNEX 5: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION	22

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

SECTION 1: SUMMARY OF RESULTS

3Q11: preparing for a more challenging environment

In the nine-month period ended September 30, 2011 (9M11), net income attributable to shareholders1 totaled Ch$332,963 million (Ch$1.77 per share and US$3.56/ADR2) and decreased 13.1% compared to net income in the same period of 2010. Return on average equity reached 23.8% in 9M11, among the highest returns in the Chilean financial system. The efficiency ratio in 9M11 reached 38.4%.

In 3Q11, net income attributable to shareholders totaled Ch$75,153 million (Ch$0.40 per share and US$0.80/ADR). Compared to 2Q11 (from now on QoQ) net income decreased 46.9%. Compared to 3Q10 (from now on YoY) net income decreased 40.0%. Several non-recurring items and a cautious stance regarding risks affected these results.

Our outlook for Chile in 2012 continues to be positive, with GDP expected to expand 4.5% and inflation to be close to 3.0%. Nonetheless, the Bank focused its actions on 4 main points in the quarter in order to maintain sustainable levels of high profitability in 2012: (i) Liquidity, (ii) Capital, (iii) Selective loan growth and spreads, and (iv) Prudent risk policies. This process is very similar to the approach we carried out in the 2008-2009 period.

I.	Focus on liquidity

Core deposits grow 6.9% QoQ and 30.9% YoY

Total deposits increased 4.4% QoQ. In the quarter, the Bank continued to focus on increasing its core deposit base (non-institutional deposits). These cheaper deposits led growth and expanded 6.9% QoQ and 30.9% YoY, representing more than 70% of the Bank’s deposit base. The Bank’s loan to deposit ratio (measured as loans minus marketable securities that fund mortgage portfolio over total deposits3) improved to 94.8% as of September 2011 compared to 96.8% as of June 2011 and 100.9% in September 2010.

The Bank’s market share in total deposits has increased 36 basis points in the last 12 months to 18.7%. Throughout 2011, funding costs in the banking system have risen due to higher short-term interest rates, but the Bank’s funding costs have increased at a slower pace given the focus on core deposit growth. We currently have opened a gap of 20 basis points in average cost of funds compared to the rest of the Chilean banking system.

1 The results in this report are unaudited.

2 Earnings per ADR was calculated using the Observed Exchange Rate of Ch$515.14 per US$ as of September 30, 2011.

3 Mortgage loans in Chile are long-term fixed rate loans. Therefore, we consider it to be more conservative form a market risk and liquidity stand point to fund these loans with long-term fixed rate bonds and not short-term variable rate deposits.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Average cost of funds

Cost of funds: Interest expenses / total liabilities annualized. Competition includes all Chilean banks minus Santander. Source of data: Superintendency of Banks of Chile (SBIF)

Surplus liquidity tops US$3 billion

In the quarter, the Bank’s deposit base increased at a faster pace than its loans. This additional liquidity was temporarily invested in Chilean sovereign risk. The Bank’s surplus liquidity, defined as financial investments minus non-structural liabilities, averaged US$3.0 billion in the quarter.

II.	Focus on core capital

Core capital at 10.2%. ROAE in 9M11 at 23.8%

The Bank currently has one of the highest capitalization levels in the Chilean financial system. Voting common shareholders’ equity is the sole component of our Tier I capital. The Bank core capital ratio reached 10.2%, increasing 40 bp QoQ. The Bank implemented a series of measures to boost core capital ratios by optimizing risk-weighted assets. As a result, the BIS ratio reached 13.9% as of September 30, 2011 compared to 13.4% as of June 2011. ROAE in the nine-month period ended September 30, 2011 reached 23.8%.

III.	Focus on selective loan growth and spreads

In 3Q11, total loans increased 1.5% QoQ and 16.1% YoY. The Bank has been following a more selective approach to loan growth given the market uncertainty, while continuing to focus on retail lending activities. Higher yielding loans to individuals increased 2.1% QoQ in 3Q11. This loan growth was led by lending to middle and upper income individuals, which expanded 2.2% QoQ. Lending to Santander Banefe slowed in the quarter and grew 1.3% QoQ. Lending to SMEs led growth in retail lending and expanded 2.8% QoQ. In the middle market, loans grew 2.9% QoQ (18.1% YoY). This year the Bank is obtaining attractive returns in this segment given the positive evolution of credit risk and spreads.

Rising spreads

The Banks net interest margin in the quarter reached 4.6% compared to 5.2% in 2Q11. The Bank’s margins in the quarter were negatively affected by lower QoQ inflation rates, as the Bank has more assets than liabilities linked to inflation. Inflation in the quarter descended from 1.44% in 2Q11 to 0.56% in 3Q11. For every 100 bp decline in inflation, net interest income falls by approximately Ch$25 billion. The increase in the Bank’s surplus liquidity has also temporarily reduced the Bank’s net interest margin.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

These negative effects on margins were partially offset by rising loan spreads (excluding the impacts of mismatches in inflation indexed assets and liabilities). Loan spreads in the quarter began to rise as the Bank implemented a stricter pricing policy in light of a potential deterioration of economic conditions and a potentially higher cost of capital. This should also help to sustain or improve margins in coming quarters.

Loan spreads*, %

Spread = Loan yield minus cost of funds and excluding impacts of inflation indexed asset and liability mismatches.

IV.	Prudent credit risk policies

Risk index stable despite higher provisions

On a year-to date basis net provision expense has increased 7.6% compared to a 16.1% rise in loan growth. Provision for loan losses in the quarter increased 58.9% QoQ and 75.4% YoY. This rise was mainly due to one-time provisions expenses, the expansion of our lending volumes, especially consumer lending and more prudent credit risk policies implemented in light of a possible deterioration of the macro environment. This included restricting renegotiations and, therefore, increasing charge-offs. This also resulted in a temporary rise in NPLs, but did not affect the Bank’s risk index. The Risk Index, which includes non-performing loans and additional risk parameters, remained stable QoQ at 2.94%. The Bank is required to have 100% coverage at all times of its Risk Index. The NPL ratio, which includes all loans that are more than 90 days overdue, as of September 2011 reached 2.81%. The coverage ratio of total NPLs (loan loss allowances over non-performing loans) reached 104.8% as of September 2011.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Banco Santander Chile: Summary of Quarterly Results

	Quarter									Change %
										3Q11 /			3Q11 /
(Ch$ million)	3Q11			2Q11			3Q10			3Q10			2Q11
Net interest income		232,057			247,414			235,674			(1.5	)%		(6.2	)%
Fee income		65,991			72,050			66,436			(0.7	)%		(8.4	)%
Core revenues		298,048			319,464			302,110			(1.3	)%		(6.7	)%
Financial transactions, net		23,001			29,076			21,713			5.9	%		(20.9	)%
Provision expense		(90,372	)		(56,874	)		(51,525	)		75.4	%		58.9	%
Operating expenses		(128,356	)		(125,161	)		(113,570	)		13.0	%		2.6	%
Operating income, net of provisions and costs		102,321			166,505			158,728			(35.5	)%		(38.5	)%
Other operating & Non-op. Income		(27,168	)		(24,993	)		(33,372	)		(18.6	)%		8.7	%
Net income attributable to shareholders		75,153			141,512			125,356			(40.0	)%		(46.9	)%
Net income/share (Ch$)		0.40			0.75			0.67			(40.0	)%		(46.9	)%
Net income/ADR (US$)1		0.80			1.66			1.42			(43.5	)%		(51.4	)%
Total loans		17,680,356			17,422,041			15,232,019			16.1	%		1.5	%
Deposits		13,892,003			13,306,475			11,146,945			24.6	%		4.4	%
Shareholders’ equity		1,927,498			1,866,467			1,757,340			9.7	%		3.3	%
Net interest margin		4.6	%		5.2	%		5.7	%
Efficiency ratio		41.3	%		36.5	%		37.2	%
Return on average equity2		15.8	%		30.5	%		29.3	%
NPL / Total loans3		2.8	%		2.6	%		2.7	%
Coverage NPLs		104.8	%		111.9	%		105.1	%
Risk index4		2.94	%		2.90	%		2.82	%
PDLs/ Total loans5		1.27	%		1.23	%		1.36	%
Coverage PDLs		232.45	%		235.86	%		206.64	%
BIS ratio		13.9	%		13.4	%		14.5	%
Branches		494			487			500
ATMs		1,892			1,946			1,914
Employees		11,706			11,516			11,049

1.	The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate movements. Earnings per ADR was calculated using the Observed Exchange Rate Ch$515.14 per US$ as of September 30, 2011.

2.	Annualized quarterly Net income attributable to shareholders / Average equity attributable to shareholders.

3.	NPLs: Non-performing loans; full balance of loans with one installment 90 days or more overdue.

4.	Risk Index: Loan loss allowances / Total loans; measures the percentage of loans the banks must provision for given their internal models and the Superintendency of Banks guidelines.

5.	PDLs: Past due loans; all loan installments that are more than 90 days overdue.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 2: BALANCE SHEET ANALYSIS

LOANS

Selective loan growth led by retail lending to middle-upper income individuals

Loans	Quarter ended,						% Change
(Ch$ million)	Sep-11		Jun-11		Sep-10		Sep. 11 / 10			Sep. 11 / Jun. 11
Total loans to individuals1		9,215,686		9,026,697		8,035,617		14.7	%		2.1	%
Consumer loans		2,925,659		2,893,038		2,554,884		14.5	%		1.1	%
Residential mortgage loans		5,016,419		4,909,630		4,498,799		11.5	%		2.2	%
SMEs		2,524,836		2,455,349		2,301,536		9.7	%		2.8	%
Total retail lending		11,740,522		11,482,046		10,337,153		13.6	%		2.3	%
Institutional lending		351,686		372,939		340,274		3.4	%		(5.7	)%
Middle-Market & Real estate		3,731,881		3,625,439		3,160,681		18.1	%		2.9	%
Corporate		1,833,084		1,950,992		1,406,210		30.4	%		(6.0	)%
Total loans 2		17,680,356		17,422,041		15,232,019		16.1	%		1.5	%

1. Includes consumer loans, residential mortgage loans and other commercial loans to individuals.

2. Total loans gross of loan loss allowances. Total loans include other non-segmented loans and excludes interbank loans.

In 3Q11, total loans increased 1.5% QoQ and 16.1% YoY. The Bank has been following a more selective approach to loan growth given the market uncertainty while continuing to focus on retail lending activities.

Loans to individuals, which include consumer, mortgage and commercial loans to high-income individuals, increased of 2.1% QoQ in 3Q11. This loan growth was driven by lending to middle and upper income individuals, which expanded 2.2% QoQ. Lending to Santander Banefe increased 1.3% QoQ as the bank adopted a more selective approach to loan growth in this segment.

Breakdown loans to individuals (Ch$ million)	Sep-11		% Change Sep. 11 / 10			% Change Sep. 11 / Jun. 11
Middle-upper income		8,420,540		14.3	%		2.2	%
Santander Banefe		795,146		18.9	%		1.3	%
Individuals		9,215,686		14.7	%		2.1	%

By product, consumer loans increased 1.1% QoQ and 14.5% YoY. In the quarter, the Bank focused on expanding its higher yielding credit card loan portfolio that increased 2.3% QoQ and 28.2% YoY. Installment loans were flat QoQ. Residential mortgage loans increased 2.2% QoQ (11.5% YoY), as long-term rates remained attractive and demand for purchasing homes continued to rise.

Lending to SMEs (defined as companies that sell less than Ch$1,200 million per year) led growth in retail lending and expanded 2.8% QoQ (9.7% YoY), reflecting the Bank’s shift in focus in the quarter given market uncertainties. This segment tends to perform better in slower economic growth periods given the high level of diversification of this portfolio.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

In the middle market (comprised of companies with annual sales between Ch$1,200 million and Ch$10.000 million per year), loans grew a healthy 2.9% QoQ (18.1% YoY). This year the Bank is obtaining attractive returns in this segment given the positive evolution of credit risk and spreads.

Corporate lending (companies with sale over Ch$10,000 million per year or that are part of a large foreign or local economic group) decreased 6.0% QoQ (+30.4% YoY). This fall was mainly due to 3 corporate debt obligation that were paid in full as company’s currently have strong liquidity levels. Non-lending activities with this segment continued to grow in the quarter. (See Funding and Financial transactions, net).

FUNDING

Focus on liquidity. Core deposits grow 6.9% QoQ and 30.9% YoY

Funding	Quarter ended,									% Change
(Ch$ million)	Sep-11			Jun-11			Sep-10			Sep. 11 / 10			Sep. 11 / Jun. 11
Demand deposits		4,496,757			4,450,290			3,991,732			12.7	%		1.0	%
Time deposits		9,395,246			8,856,185			7,155,213			31.3	%		6.1	%
Total deposits		13,892,003			13,306,475			11,146,945			24.6	%		4.4	%
Mutual funds (off-balance sheet)		2,852,379			3,136,413			3,305,683			(13.7	)%		(9.1	)%
Total customer funds		16,744,382			16,442,888			14,452,628			15.9	%		1.8	%
Loans to deposits1		94.8	%		96.8	%		100.9	%

1. (Loans - marketable securities that fund mortgage portfolio) / (Time deposits + demand deposits).

Customer funds increased 1.8% in the quarter led by a 4.4% QoQ rise in total deposits. Demand deposits increased 1.0% in the same period and time deposits were up 6.1%. In the quarter, the Bank continued to focus on increasing its core deposit base. Core deposits (non-institutional deposits) increased 6.9% QoQ and 30.9% YoY. The Bank’s loan to deposit ratio (measured as loans minus marketable securities that fund mortgage portfolio over total deposits) improved to 94.8% as of September 2011 compared to 96.8% as of June 2011 and 100.9% in September 2010. The Bank’s market share in total deposits has increased 36 basis points in the last 12 months to 18.7%. Mutual funds under management decreased 9.1% QoQ. This was mainly due to weak equity markets.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

Core capital at 10.2%. ROAE in 9M11 at 23.8%

Shareholders' Equity	Quarter ended,									Change %
(Ch$ million)	Sep-11			Jun-11			Sep-10			Sep. 11 / 10			Sep. 11 / Jun. 11
Capital		891,303			891,303			1,757,340			(49.3	)%		0.0	%
Reserves		51,538			51,538			51,539			(0.0	)%		0.0	%
Valuation adjustment		593			(7,831	)		(13,928	)		(104.3	)%		(107.6	)%
Retained Earnings:		984,064			931,457			828,426			18.8	%		5.6	%
Retained earnings prior periods		750,989			750,990			560,128			34.1	%		0.0	%
Income for the period		332,963			257,810			383,283			(13.1	)%		29.2	%
Provision for mandatory dividend		(99,889	)		(77,343	)		(114,985	)		(13.1	)%		29.2	%
Equity attributable to shareholders		1,927,498			1,866,467			2,623,377			(26.5	)%		3.3	%
Non-controlling interest		32,293			31,171			29,599			9.1	%		3.6	%
Total Equity		1,959,791			1,897,638			2,652,976			(26.1	)%		3.3	%
Quarterly ROAE		15.8	%		30.5	%		23.0	%

Shareholders’ equity totaled Ch$1,927,498 million (US$4.0 billion) as of September 30, 2011. ROAE in the nine-month period ended September 30, 2011 reached 23.8%. During the quarter, the Bank implemented a series of measures to boost core capital ratios by optimizing risk-weighted assets. As a result, the BIS ratio reached 13.9% as of September 30, 2011 compared to 13.4% as of June 2011 and the Bank’s core capital ratio reached 10.2% as of September 2011 compared to 9.8% as of June 2011. Voting common shareholders’ equity is the sole component of our Tier I capital.

Capital Adequacy	Quarter ended,									Change %
(Ch$ million)	Sep-11			Jun-11			Sep-10			Sep. 11 / 10			Sep. 11 / Jun. 11
Tier I (Core Capital)		1,927,498			1,866,467			1,757,340			9.7	%		3.3	%
Tier II		715,184			669,798			672,740			6.3	%		6.8	%
Regulatory capital		2,642,682			2,536,265			2,430,080			8.7	%		4.2	%
Risk weighted assets		18,954,146			18,964,803			16,739,710			13.2	%		(0.1	)%
Tier I (Core capital) ratio		10.2	%		9.8	%		10.5	%
BIS ratio		13.9	%		13.4	%		14.5	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT

NET INTEREST INCOME

Net interest margins negatively affected by lower inflation in the quarter and higher levels of liquidity. Loan spreads rising.

Net Interest Income / Margin	Quarter									Change %
(Ch$ million)	3Q11			2Q11			3Q10			3Q11 / 3Q10			3Q11 / 2Q11
Interest income		420,729			472,132			355,445			18.4	%		(10.9	)%
Interest expense		(188,672	)		(224,718	)		(119,771	)		57.5	%		(16.0	)%
Net interest income		232,057			247,414			235,674			(1.5	)%		(6.2	)%
Average interest-earning assets		20,068,322			19,099,828			16,463,951			21.9	%		5.1	%
Average loans		17,460,992			17,146,712			14,874,816			17.4	%		1.8	%
Interest earning asset yield1		8.4	%		9.9	%		8.6	%
Cost of funds2		4.1	%		5.2	%		2.8	%
Net interest margin (NIM)3		4.6	%		5.2	%		5.7	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		31.3	%		33.6	%		34.7	%
Quarterly inflation rate5		0.56	%		1.44	%		0.65	%
Central Bank reference rate		5.25	%		5.25	%		2.50	%
Avg. 10 year Central Bank yield (real)		2.63	%		2.90	%		2.82	%

1. Interest income divided by interest earning assets.

2. Interest expense divided by interest bearing liabilities + demand deposits.

3. Net interest income divided by average interest earning assets annualized.

4. Net interest income net of provision expenses divided by interest earning assets.

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

Net interest income decreased 6.2% QoQ and 1.5% YoY. The Net interest margin (NIM) in 3Q11 reached 4.6% compared to 5.2% in 2Q11. Compared to 3Q10, the decline in net interest income and NIM was mainly due to higher short-term interest rates. The Central Bank has increased short-term interest rates by 300 basis points to 5.25% in the last twelve months. The Bank’s liabilities have a shorter duration than assets and, therefore, re-price more quickly in a rising interest rate environment. This has increased funding costs as reflected in the 57.5% YoY rise in interest expense in the quarter. Interest income on the other hand has increased 18.4% slightly above the 17.4% YoY increase in average loans. To offset this, the Bank focused on increasing core deposit base. We have currently opened a gap of 20 basis points in average cost of funds compared to the rest of the Chilean banking system.

Compared to 2Q11, the decrease in the Bank’s net interest income and NIM was mainly due to: (i) the lower QoQ inflation rates, which negatively affected margins, as the Bank has more assets than liabilities linked to inflation. Inflation in the quarter descended from 1.44% in 2Q11 to 0.56% in 3Q11. For every 100 bp decline in inflation, net interest income falls by approximately Ch$25 billion. This more than offset in the quarter rising loan spreads, which are gradually incorporating the higher interest rate environment. (ii) The increase in the Bank’s surplus liquidity has also temporarily reduced the Bank’s net interest margin. The Bank deposit base has increased 24.6% YoY and 4.4% QoQ compared to a 17.4% YoY and 1.8% QoQ increase in average loans.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

This additional liquidity has been temporarily invested in sovereign Chilean risk. The Bank’s surplus liquidity, defined as financial investments minus non-structural liabilities, averaged US$3.0 billion in the quarter.

Surplus liquidity (US$ million)

Surplus liquidity: Financial investments minus non-structural liabilities

The negative effects on margins were partially offset by rising loan spreads (excluding the impacts of mismatches in inflation indexed assets and liabilities). Loan spreads in the quarter began to rise as the Bank implemented a stricter pricing policy in light of a potential deterioration of economic conditions. This should also help to sustain or improve margins in coming quarters.

Loan spreads*, %

Spread = Loan yield minus cost of funds and excluding impacts of inflation indexed asset and liability mismatches. Excludes corporate banking

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

PROVISION FOR LOAN LOSSES

Risk index stable despite higher provisions. Provision expense in 3Q11 affected by various one-time expenses

Provision for loan losses	Quarter									Change %
(Ch$ million)	3Q11			2Q11			3Q10			3Q11 / 3Q10			3Q11 / 2Q11
Gross provisions		(18,628	)		1,040			(9,974	)		86.8	%		(1891.2	)%
Charge-offs		(77,466	)		(62,577	)		(49,568	)		56.3	%		23.8	%
Gross provisions and charge-offs		(96,094	)		(61,537	)		(59,542	)		61.4	%		56.2	%
Loan loss recoveries		5,722			4,663			8,017			(28.6	)%		22.7	%
Net provisions for loan losses1		(90,372	)		(56,874	)		(51,525	)		75.4	%		58.9	%
Total loans2		17,680,355			17,422,041			15,232,019			16.1	%		1.5	%
Loan loss allowances1		520,565			505,887			428,833			21.4	%		2.9	%
Non-performing loans3 (NPLs)		496,786			452,150			407,831			21.8	%		9.9	%
Risk Index4		2.94	%		2.90	%		2.82	%
NPL / Total loans		2.81	%		2.60	%		2.68	%
Coverage ratio of NPLs5		104.8	%		111.9	%		105.1	%

1.	The Bank reclassified Ch$ 31,162 million in provision reversals for off balance sheet lines of credit recognized in 3Q10 as Other operating income to Provisions for loan losses as required by the SBIF.

2.	Excludes interbank loans.

3.	NPLs: Non-performing loans; full balance of loans with one installment 90 days or more overdue.

4.	Risk Index: Loan loss allowances / Total loans; measures the percentage of loans the banks must provision for given their internal models and the Superintendency of Banks guidelines.

5.	Loan loss allowances / NPLs.

Provision for loan losses in the quarter increased 58.9% QoQ and 75.4% YoY. On a year-to date basis net provision expense has increased 7.6% compared to a 16.1% rise in loan growth. The QoQ increase was mainly due to:

Strengthening of the residential mortgage provisioning model. As announced in our 2Q11 earnings report, the Bank improved its provisioning model for residential mortgage lending. This change was done in line with our strategic objective of accompanying our loan growth in retail lending with a proactive stance regarding credit risk. This signified a one-time provision expense of approximately Ch$10,000 million in 3Q11. The Bank migrated to a model with more parameters to determine the risk level of a client with a mortgage loan. Previously, the main factor for determining the reserve level was non-performance. For more details on the new model, see Annex 1.

ii.

Higher provisions in the middle-market. In 3Q11, the bank set aside Ch$4,000 million in provisions for two deteriorated loan positions in the middle market. We do not expect further provisions for these cases in the future.

iii.

Provisions related to La Polar. The Bank set aside a further Ch$600 million in provisions for this loan position in 3Q11.

iv.

Translation loss of provisions in US$. In the quarter, the Chilean peso depreciated 9%. As some large commercial loan positions are denominated in US$ and, since the Bank must set aside minimum provisions for all large loans analyzed on an individual basis, this resulted in Ch$4,600 million in higher provision directly related to the depreciation of the exchange rate.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Excluding these one-time items, the adjusted provision expenses increased 38.1% QoQ and 25.1% YoY in 3Q11. This rise was mainly due to one-time provisions expenses, the expansion of our lending volumes, especially consumer lending and more prudent credit risk policies implemented in light of a possible deterioration of the macro environment. This included restricting renegotiations and, therefore, increasing charge-offs. This also resulted in a temporary rise in NPLs, but did not affect the Bank’s risk index. The Risk Index, which measures the percentage of loans the banks must provision for given their internal models and the Superintendency of Banks guidelines, remained stable QoQ at 2.94%. We are required to have 100% coverage at all times of its Risk Index. The NPL ratio as of September 2011 reached 2.81%. The coverage ratio of total NPLs (loan loss allowances over non-performing loans) reached 104.8% as of September 2011.

Risk Index vs NPLs, %

NPLs: Non-performing loans; full balance of loans with one installment 90 days or more overdue.

Risk Index: Loan loss allowances / Total loans; measures the percentage of loans the banks must provision for given their internal models and the Superintendency of Banks guidelines.

NET FEE INCOME

Market conditions and the temporary slowdown in loan originations affected fee income

Fee Income	Quarter						Change %
(Ch$ million)	3Q11		2Q11		3Q10		3Q11 / 3Q10			3Q11 / 2Q11
Collection fees		14,684		16,215		15,324		(4.2	)%		(9.4	)%
Credit, debit & ATM card fees		14,383		16,079		13,518		6.4	%		(10.5	)%
Checking accounts & lines of credit		10,020		10,025		10,604		(5.5	)%		(0.0	)%
Asset management		8,796		10,179		10,063		(12.6	)%		(13.6	)%
Insurance brokerage		7,955		9,574		8,683		(8.4	)%		(16.9	)%
Guarantees, pledges and other contingent operations		6,335		5,697		5,568		13.8	%		11.2	%
Fees from brokerage and custody of securities		2,469		2,592		2,399		2.9	%		(4.7	)%
Other Fees		1,349		1,689		277		388.8	%		43,344.9	%
Total fees		65,991		72,050		66,436		(0.7	)%		(8.4	)%

Net fee income was down 8.4% QoQ and 0.7% YoY in 3Q11. The main reason for this decline was the temporary slowdown in loan origination, which had a negative impact on loan related insurance premiums. At the same time, the weaker markets negatively affected our mutual fund fees and fees from securities brokerage. Credit card fees were down due to a seasonal rise in credit card expenses paid to the credit card processor. Gross fees from credit cards were up 3.0% QoQ in line with the growth of this product.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

The Bank’s client base, especially cross-sold clients continues to grow at a solid pace. The amount of cross-sold clients is growing at double the pace of our total client base. Credit cards continue to be the fastest growing product, the number of which has increased 12.7% YoY.

Evolution of client base

NET RESULTS FROM FINANCIAL TRANSACTIONS

Positive results from client treasury services

Results from Financial Transactions*	Quarter								Change %
(Ch$ million)	3Q11			2Q11		3Q10			3Q11 / 3Q10			3Q11 / 2Q11
Net income from financial operations		102,133			2,027		(45,068	)		—	%		4,938.6	%
Foreign exchange profit (loss), net		(79,132	)		27,049		66,781			—	%		—	%
Net results from financial transactions		23,001			29,076		21,713			5.9	%		(20.9	)%

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 Foreign exchange profits (loss), net mainly includes the translation gains or losses of assets and a liability denominated in foreign currency.

Net results from financial transactions, which include the sum of the net income from financial operations and net foreign exchange profits, totaled a gain of Ch$23,001 million in 3Q11, a decrease of 20.9% QoQ and an increase of 5.9% YoY. In order to comprehend more clearly these line items, we present them by business area in the table below.

Results from Financial Transactions	Quarter						Change %
(Ch$ million)	3Q11		2Q11		3Q10		3Q11 / 3Q10			3Q11 / 2Q11
Santander Global Connect1		16,259		15,045		11,628		39.8	%		8.1	%
Market-making		4,958		6,012		8,451		(41.3	)%		(17.5	)%
Client treasury services		21,217		21,058		20,079		5.7	%		0.8	%
Non-client treasury services		1,784		8,018		1,635		9.2	%		(77.7	)%
Net results from financial transactions		23,001		29,076		21,713		5.9	%		(20.9	)%

1.	Santander Global Connect is the Bank’s commercial platform for selling treasury products to our clients.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

The quarterly results were mainly driven by Client treasury services, which totaled Ch$21,217 million in 3Q11 – more than 90% of this line item – that increased 0.8% QoQ and 5.7% YoY. The higher market volatility, especially in the foreign exchange market led to a greater number of clients to hedge exposures resulting in a high gain from Santander Global Connect.

Non-client treasury services fell in the quarter as the Bank maintained high levels of liquidity and avoided taking any major prop-trading positions or gaps, lowering trading results.

OPERATING EXPENSES AND EFFICIENCY

Operating expenses flat QoQ

Operating Expenses	Quarter									Change %
(Ch$ million)	3Q11			2Q11			3Q10			3Q11 / 3Q10			3Q11 / 2Q11
Personnel salaries and expenses		(73,884	)		(70,655	)		(63,330	)		16.7	%		4.6	%
Administrative expenses		(41,041	)		(41,535	)		(37,983	)		8.1	%		(1.2	)%
Depreciation and amortization		(13,354	)		(12,944	)		(11,294	)		18.2	%		3.2	%
Impairment		(77	)		(27	)		(963	)		(92.0	)%		185.2	%
Operating expenses		(128,356	)		(125,161	)		(113,570	)		13.0	%		2.6	%
Efficiency ratio1		41.3	%		36.5	%		37.2	%

1.	Operating expenses / Operating income. Operating income = Net interest income + Net fee income+ Net results from Financial transactions + Other operating income and expenses.

Operating expenses in 3Q11 increased 2.6% QoQ and 13.0% YoY. The efficiency ratio reached 41.3% in 3Q11. The 4.6% QoQ increase in personnel expenses was mainly due to the increase in headcount and a rise in severance payments. Headcount increased 5.9% YoY and 1.6% QoQ. Of the 190 persons hired in 3Q11, 160 were collection agents. As of June 30, 2011 headcount totaled 11,706 employees.

Administrative expenses fell 1.2% QoQ as the Bank commenced to implement a stricter stance regarding costs. At the same time, the Bank continues with its projects of in investing in technology and alternative distribution channels to enhance productivity in future periods. The Bank is currently investment in a new Client Relationship Management system and other IT projects. These projects should drive stronger revenue growth while increasing productivity. The Bank also opened 7 branches in the quarter, 4 of which were Banca Prime branches for upper income individuals.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

OTHER INCOME AND EXPENSES

Other Income and Expenses	Quarter									Change %
(Ch$ million)	3Q11			2Q11			3Q10			3Q11 / 3Q10			3Q11 / 2Q11
Other operating income		2,194			3,309			2,656			(17.4	)%		(33.7	)%
Other operating expenses		(12,156	)		(8,800	)		(21,333	)		(43.0	)%		38.1	%
Other operating income, net		(9,962	)		(5,491	)		(18,677	)		(46.7	)%		81.4	%
Income from investments in other companies		546			552			832			(34.4	)%		(1.1	)%
Income tax expense		(16,629	)		(19,416	)		(14,109	)		17.9	%		(14.4	)%
Income tax rate		17.9	%		12.0	%		10.0	%

Other operating income, net, totaled Ch$-9,962 million in 3Q11. The lower loss compared to 3Q10 was mainly due to lower charge-off of repossessed assets. Compared to 2Q11 the higher loss from other operating income, net was mainly due to an increase in charge-off of fixed assets mainly related to vandalized ATMs.

The 14.4% QoQ decrease in income tax expense was mainly due to lower net income before taxes. In addition, in 2Q11, the Bank recognized a one-time tax benefit from real estate taxes (contribuciones) paid over assets it has leased to clients. Compared to 3Q10, the rise in the effective tax rate was due the rise of the statutory tax rate to 20% from 17% last year. In 3Q10, the Bank’s effective income tax rate also benefitted from the application of the new corporate tax rates over deferred taxes, which resulted in a higher net asset position in differed taxes and therefore a lower effective tax rate in said quarter.

In 2012, the statutory corporate tax rate should decline to 18.5% and 17% in 2013.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 4: CREDIT RISK RATINGS

International ratings

The Bank has credit ratings from three leading international agencies. In the quarter, Fitch lowered the Bank ratings from AA- to A+. Standard and Poor’s modified its outlook to negative and there was no change regarding our ratings from Moody’s. These rating changes were driven by a reduction in ratings of our controlling shareholder.

Moody’s (Outlook stable)		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 negative)		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 (Outlook negative)		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
Viability rating		a+
Individual rating		B

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 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 5: SHARE PERFORMANCE

As of September 2011

Ownership Structure:

ADR price (US$) 9M11
09/30/11:		73.48
Maximum (1H11):		96.44
Minimum (1H11):		70.64

Market Capitalization:		US$13,329 million

P/E 12 month trailing*:		16.5
P/BV (06/30/11)**:		3.66
Dividend yield***:		3.7%

*	Price as of Sept. 30, 2011 / 12mth. earnings

**	Price as of Sept. 30, 2011 / Book value as of 09/30/11

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

Local share price (Ch$) 9M11
09/30/11:		37.46
Maximum (9M11):		43.64
Minimum (9M11):		35.63

Dividends:

Year paid	Ch$/share		% of previous year earnings
2007:		0.99		65	%
2008:		1.06		65	%
2009:		1.13		65	%
2010:		1.37		60	%
2011:		1.52		60	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 1: NEW PROVISIONING MODEL FOR RESIDENTIAL MORTGAGE LOANS

Prior to June 2011, residential mortgage loans were assigned an allowance level based on credit risk profiles which were determined utilizing a statistical model that considered a borrower’s credit history, including any defaults on obligations to other creditors, as well as the overdue periods on the loans borrowed from us. Once the rating of the client was determined, the allowance for a mortgage loan was calculated using a risk category, which was directly related to days overdue. The following table sets forth the allowance to loan ratios previously used by the Bank. The ratios represent the percentage of required allowance amount to the aggregate amount of the principal and accrued but unpaid interest on the loan.

Previous model Residential mortgage loans		Overdue days
		1-30			31-60			61-120			121-180			181-360			361- 720			>720
Mortgage	Profile 1		0.3	%		0.5	%		1.2	%		2.4	%		6.8	%		14.1	%		28.3	%
	Profile 2		1.5	%		1.6	%		2.5	%		4.4	%		6.8	%		14.1	%		28.3	%

As of June 2011, residential mortgage loans are assigned an allowance level based on credit risk profiles, which were determined utilizing a statistical model that considers: (i) a borrower’s credit history, (ii) if a client is a new client or an existing client, (iii) if the client is a Bank client or a Banefe client and (iv) if this client has been renegotiated in the system.

As of June 2011, the model for determining provisions for residential mortgage loans is as follows. The ratios represent the percentage of required allowance amount to the aggregate amount of the principal and accrued but unpaid interest on the loan.

New model Residential mortgage loans		Performing			Overdue days
					1-29			30-59			60-89			>90 days
Mortgage (Bank client)	New client		0.20	%		2.7	%		3.6	%		4.63	%		11.0	%
	Existing client		0.29	%		1.49	%		2.97	%		3.7	%		11.0	%
	Renegotiated client		1.75	%		1.75	%		1.75	%		1.75	%		11.0	%
Mortgage (Banefe client)	New or existing client		0.35	%		2.19	%		3.64	%		4.72	%		11.0	%
	Renegotiated client		1.75	%		1.75	%		1.75	%		1.75	%		11.0	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 2: BALANCE SHEET

Unaudited Balance Sheet	Sep-11			Sep-11			Dec-10			Sept. 11 / Dec. 10
	US$ths			Ch$ million						% Chg.
Assets
Cash and balances from Central Bank		3,488,473			1,812,785			1,762,198			2.9	%
Funds to be cleared		1,571,444			816,601			374,368			118.1	%
Financial assets held for trading		969,524			503,813			379,670			32.7	%
Investment collateral under agreements to repurchase		23,395			12,157			170,985			(92.9	)%
Derivatives		3,871,038			2,011,585			1,624,378			23.8	%
Interbank loans		169,141			87,894			69,672			26.2	%
Loans, net of loan loss allowances		33,021,822			17,159,790			15,175,975			13.1	%
Available-for-sale financial assets		4,050,118			2,104,644			1,473,980			42.8	%
Held-to-maturity investments		0			0			0			—	%
Investments in other companies		15,841			8,232			7,275			13.2	%
Intangible assets		148,617			77,229			77,990			(1.0	)%
Fixed assets		294,652			153,116			154,985			(1.2	)%
Current tax assets		53,394			27,746			12,499			122.0	%
Deferred tax assets		276,028			143,438			117,964			21.6	%
Other assets		1,354,999			704,125			640,937			9.9	%
Total Assets		49,308,486			25,623,155			22,042,876			16.2	%

Liabilities and Equity
Demand deposits		8,653,434			4,496,757			4,236,434			6.1	%
Funds to be cleared		896,879			466,063			300,125			55.3	%
Investments sold under agreements to repurchase		436,915			227,043			294,725			(23.0	)%
Time deposits and savings accounts		18,079,950			9,395,246			7,258,757			29.4	%
Derivatives		3,127,632			1,625,274			1,643,979			(1.1	)%
Deposits from credit institutions		3,896,961			2,025,056			1,584,057			27.8	%
Marketable debt securities		8,684,511			4,512,906			4,190,888			7.7	%
Other obligations		321,357			166,993			166,289			0.4	%
Current tax liabilities		4,426			2,300			1,293			77.9	%
Deferred tax liability		22,284			11,580			5,441			112.8	%
Provisions		329,299			171,120			235,953			(27.5	)%
Other liabilities		1,083,472			563,026			261,328			115.4	%
Total Liabilities		45,537,119			23,663,364			20,179,269			17.3	%

Equity
Capital		1,715,199			891,303			891,303			0.0	%
Reserves		99,178			51,538			51,539			(0.0	)%
Unrealized gain (loss) Available-for-sale financial assets		1,143			594			(5,180	)		—	%
Retained Earnings:		1,893,703			984,063			894,136			10.1	%
Retained earnings previous periods		1,445,182			750,989			560,128			34.1	%
Net income		640,745			332,963			477,155			(30.2	)%
Provision for mandatory dividend		(192,224	)		(99,889	)		(143,147	)		(30.2	)%
Total Shareholders' Equity		3,709,224			1,927,498			1,831,798			5.2	%
Minority Interest		62,144			32,293			31,809			1.5	%
Total Equity		3,771,367			1,959,791			1,863,607			5.2	%
Total Liabilities and Equity		49,308,486			25,623,155			22,042,876			16.2	%

Figures in US$ have been translated at the exchange rate of Ch$519.65

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 3: YEAR-TO-DATE INCOME STATEMENTS

YTD Income Statement Unaudited	Sep-11			Sep-11			Sep-10			Sept. 11 / Sept. 10
	US$ths.			Ch$ million						% Chg.

Interest income		2,446,412			1,271,278			1,045,602			21.6	%
Interest expense		(1,083,660	)		(563,124	)		(337,748	)		66.7	%
Net interest income		1,362,752			708,154			707,854			0.0	%
Fee and commission income		522,546			271,541			247,346			9.8	%
Fee and commission expense		(119,525	)		(62,111	)		(53,401	)		16.3	%
Net fee and commission income		403,021			209,430			193,945			8.0	%
Net income from financial operations		295,458			153,535			51,946			195.6	%
Foreign exchange profit (loss), net		(144,838	)		(75,265	)		24,381			—	%
Total financial transactions, net		150,621			78,270			76,327			2.5	%
Other operating income		15,497			8,053			27,554			(70.8	)%
Net operating profit before loan losses		1,931,891			1,003,907			1,005,680			(0.2	)%
Provision for loan losses		(377,023	)		(195,920	)		(182,120	)		7.6	%
Net operating profit		1,554,868			807,987			823,560			(1.9	)%
Personnel salaries and expenses		(399,076	)		(207,380	)		(184,921	)		12.1	%
Administrative expenses		(234,924	)		(122,078	)		(109,743	)		11.2	%
Depreciation and amortization		(76,278	)		(39,638	)		(36,227	)		9.4	%
Impairment		(210	)		(109	)		(4,665	)		(97.7	)%
Operating expenses		(710,488	)		(369,205	)		(335,556	)		10.0	%
Other operating expenses		(79,994	)		(41,569	)		(45,963	)		(9.6	)%
Total operating expenses		(790,482	)		(410,774	)		(381,519	)		7.7	%
Operating income		764,386			397,213			442,041			(10.1	)%
Income from investments in other companies		3,219			1,673			1,175			42.4	%
Income before taxes		767,605			398,886			443,216			(10.0	)%
Income tax expense		(120,362	)		(62,546	)		(60,032	)		4.2	%
Net income from ordinary activities		647,243			336,340			383,184			(12.2	)%
Net income discontinued operations		0			0			0			—	%
Net income attributable to:
Minority interest		6,499			3,377			(99	)		—	%
Net income attributable to shareholders		640,745			332,963			383,283			(13.1	)%

Figures in US$ have been translated at the exchange rate of Ch$519.65

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 4: QUARTERLY INCOME STATEMENTS

Unaudited Quarterly Income Statement	3Q11			3Q11			2Q11			3Q10			3Q11 / 3Q10			3Q11 / 2Q11
	US$ths.			Ch$mn									% Chg.
Interest income		809,639			420,729			472,132			355,445			18.4	%		(10.9	)%
Interest expense		(363,075	)		(188,672	)		(224,718	)		(119,771	)		57.5	%		(16.0	)%
Net interest income		446,564			232,057			247,414			235,674			(1.5	)%		(6.2	)%
Fee and commission income		168,673			87,651			92,652			85,379			2.7	%		(5.4	)%
Fee and commission expense		(41,682	)		(21,660	)		(20,602	)		(18,943	)		14.3	%		5.1	%
Net fee and commission income		126,991			65,991			72,050			66,436			(0.7	)%		(8.4	)%
Net income from financial operations		196,542			102,133			2,027			(45,068	)		—	%		4938.6	%
Foreign exchange profit (loss), net		(152,279	)		(79,132	)		27,049			66,781			—	%		—	%
Total financial transactions, net		44,262			23,001			29,076			21,713			5.9	%		(20.9	)%
Other operating income		4,222			2,194			3,309			2,656			(17.4	)%		(33.7	)%
Net operating profit before loan losses		622,040			323,243			351,849			326,479			(1.0	)%		(8.1	)%
Provision for loan losses		(173,909	)		(90,372	)		(56,874	)		(51,525	)		75.4	%		58.9	%
Net operating profit		448,130			232,871			294,975			274,954			(15.3	)%		(21.1	)%
Personnel salaries and expenses		(142,180	)		(73,884	)		(70,655	)		(63,330	)		16.7	%		4.6	%
Administrative expenses		132,041			(41,041	)		(41,535	)		(37,983	)		8.1	%		(1.2	)%
Depreciation and amortization		(25,698	)		(13,354	)		(12,944	)		(11,294	)		18.2	%		3.2	%
Impairment		(148	)		(77	)		(27	)		(963	)		(92.0	)%		185.2	%
Operating expenses		(247,005	)		(128,356	)		(125,161	)		(113,570	)		13.0	%		2.6	%
Other operating expenses		(23,393	)		(12,156	)		(8,800	)		(21,333	)		(43.0	)%		38.1	%
Total operating expenses		(270,397	)		(140,512	)		(133,961	)		(134,903	)		4.2	%		4.9	%
Operating income		177,733			92,359			161,014			140,051			(34.1	)%		(42.6	)%
Income from investments in other companies		1,051			546			552			832			(34.4	)%		(1.1	)%

Income before taxes		178,784			92,905			161,566			140,883			(34.1	)%		(42.5	)%
Income tax expense		(32,000	)		(16,629	)