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:
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Form 20-F
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X
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Form 40-F
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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):
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Yes
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No
|
X
|
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):
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Yes
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No
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X
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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:
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Yes
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No
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X
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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
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Item
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1.
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First Quarter Earnings Report
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2.
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March 2013 Financial Statements in English
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IMPORTANT NOTICE
Banco Santander-Chile is a Chilean bank and maintains its financial books and records in Chilean pesos. The consolidated interim unaudited financial statements included in this report have been prepared in accordance with Chilean accounting principles issued by the Superintendency of Banks and Financial Institutions (“Chilean Bank GAAP” and the “SBIF,” respectively). The accounting principles issued by the SBIF are substantially similar to International Financial Reporting Standards (“IFRS”), but there are some exceptions. Therefore, the consolidated interim unaudited financial statements included in this 6-K have some differences compared to the financial statements filed in our Annual Report on Form 20-F for the year ended December 31, 2012 (the “Annual Report”). For further details and a discussion of the main differences between Chilean Bank GAAP and IFRS, please see “Item 5. Operating and Financial Review and Prospects—A. Accounting Standards Applied in 2012” of our Annual Report.
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.
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BANCO SANTANDER-CHILE
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|||||
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Date:
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May 20, 2013
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By:
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/s/ Cristian Florence
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||
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Name:
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Cristian Florence
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||||
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Title:
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General Counsel
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||||
INDEX
| SECTION | 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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5
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SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT
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8
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SECTION 4: CREDIT RISK RATINGS
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17
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SECTION 5: SHARE PERFORMANCE
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18
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ANNEX 1: BALANCE SHEET
|
19
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ANNEX 2: QUARTERLY INCOME STATEMENTS
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20
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ANNEX 3: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION
|
21
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CONTACT INFORMATION
Robert Moreno
Manager, Investor Relations Department
Banco Santander Chile
Bandera 140 Piso 19
|
Santiago, Chile
Tel: (562) 2320-8284
Fax: (562) 2671-6554
Email: rmorenoh@santander.cl
Website: www.santander.cl
|
SECTION 1: SUMMARY OF RESULTS
Lower inflation and a higher tax rate reduces profitability in 1Q13
|
In 1Q13, Net income attributable to shareholders totaled Ch$80,879 million (Ch$0.43 per share and US$0.36/ADR). Compared to 4Q12 (from now on QoQ), net income decreased 28.9% and 31.7% compared to 1Q13 (from now on YoY). During the quarter, the lower inflation temporarily reduced net interest income and profitability. The higher statutory tax rate also lowered profitability.
The lower inflation mainly affected results at the beginning of the quarter. As the quarter progressed, the Bank’s commercial activity began to rebound with record loan growth in retail banking in March and higher profitability.
|
 |
For the whole 1Q13, net interest income decreased 12.9% QoQ and 7.4% YoY. The net interest margin (NIM) in 1Q13 reached 4.7% compared to 5.5% in 4Q12 and 5.3% in 1Q12. The lower net interest margin income in the quarter was mainly due to the quarterly fluctuations of inflation. In 1Q13, the variation of the Unidad de Fomento (an inflation indexed currency unit), was 0.13% compared to 1.11% in 4Q12 and 1.07% in 1Q12. It is important to point out that the Bank has more assets than liabilities linked to inflation and, as a result, margins have a positive sensitivity to variations in inflation. Therefore, the QoQ decline in inflation was an important factor that explains the reduction in net interest income and profitability in the quarter.
Loan growth accelerating in segments the Bank has targeted for growth
In 1Q13, total loans increased 1.2% QoQ and 7.4% YoY. In the quarter, loan growth continued to accelerate in the markets the Bank is targeting the most: high-income individuals, SMEs and middle market of companies. Loans in these combined markets increased 3.1% QoQ and 11.4% YoY. Loans to high-income individuals increased 2.9% QoQ. Lending to SMEs (defined as companies that sell less than Ch$1,200 million per year) expanded 1.4% QoQ and 9.8% YoY, reflecting the Bank’s consistent focus on this segment. In the quarter, the Bank also focused its loan growth in the middle-market companies segment (companies with annual sales between Ch$1,200 million and Ch$10,000 million per year), which increased 4.4% QoQ and 14.7% YoY.
Solid growth of core deposits
Customer funds (deposits + mutual funds) increased 2.6% QoQ and 5.1% YoY. Core deposits (demand and time deposits from our retail and corporate clients) expanded 12.4% YoY. Core deposits now represent 83% of the Bank’s total deposit base. This should help support net interest margins in 2013.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
2
Asset quality stabilizing in consumer loans
Net provision for loan losses in the quarter totaled Ch$92,858 million an increase of 2.7% QoQ and 18.6% YoY. Net provision expense in consumer loans, which represent 63% of total provision expense, decreased 1.0% QoQ and 3.8% YoY. This reflects the different measure carried out by the Bank to improve credit risk. This includes focus loan growth in the higher end of the consumer market, tightening admissions policies, improving the collections process and updating the consumer provisioning models (performed in 3Q12). The measures mentioned above have gradually resulting in a stabilization of asset quality in consumer lending. Consumer NPLs decreased 2.7% QoQ. The coverage of consumer NPLs reached 226.4% in 1Q13 compared to 224.0% in 4Q12. At the same time, the amount of impaired consumer loans (consumer NPLs + renegotiated consumer loans) has evolved favorably. This tends to be a leading indicator for the evolution of future charge-offs. The improved collection efforts have also led to an important rise in loan loss recoveries, especially in consumer lending. Total loan loss recoveries increased 113.3% YoY. In this same period, consumer loan loss recoveries increased 146.3% YoY.
Cost growth moderates as key projects advance
Operating expenses in 1Q13 decreased 3.9% QoQ and increased 7.7% YoY. The efficiency ratio reached 41.8% in 1Q13. Administrative expenses increased 9.0% YoY as the Bank continued with its Transformation Projects aimed at enhancing productivity in retail banking. Going forward, though, administrative expenses should grow at a slower pace as many of these projects are finalizing. The 3.1% YoY increase in personnel expenses in 1Q13 reflects the stable evolution of the Bank’s headcount. Personnel expenses should experience moderate growth in the rest of the year as headcount levels should not grow significantly.
Core capital ratio reached 10.9%. Dividend yield of 3.8%
Shareholders’ equity totaled Ch$2,194,025 million (US$4.6 billion) as of March 31, 2013. Core capital reached 10.9% and the Bank’s BIS ratio reached 13.9% at the same date. The Bank’s Board will also submit for shareholder approval on April 29, 2013 its annual dividend equivalent to 60% of 2012 net income (Ch$1.24/share) equivalent to a dividend yield of 3.8% on the day before the ex-dividend date in Chile. ROAE in the quarter reached 15.0%.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
3
Banco Santander Chile: Summary of Quarterly Results1
|
Quarter
|
Change %
|
||||
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(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Net interest income
|
246,481
|
282,991
|
266,072
|
(7.4%)
|
(12.9%)
|
|
Fee income
|
64,254
|
66,837
|
68,691
|
(6.5%)
|
(3.9%)
|
|
Core revenues
|
310,735
|
349,828
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334,763
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(7.2%)
|
(11.2%)
|
|
Financial transactions, net
|
22,262
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18,134
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19,303
|
15.3%
|
22.8%
|
|
Provision expense
|
(92,858 )
|
(90,387 )
|
(78,281 )
|
18.6%
|
2.7%
|
|
Operating expenses
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(135,245 )
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(140,665 )
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(125,610 )
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7.7%
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(3.9%)
|
|
Operating income, net of provisions and costs
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104,894
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136,910
|
150,175
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(30.2%)
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(23.4%)
|
|
Other operating & Non-op. Income
|
(24,015 )
|
(23,193 )
|
(31,820 )
|
(24.5%)
|
3.5%
|
|
Net income attributable to shareholders
|
80,879
|
113,717
|
118,355
|
(31.7%)
|
(28.9%)
|
|
Net income/share (Ch$)
|
0.43
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0.60
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0.63
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(31.7%)
|
(28.9%)
|
|
Net income/ADR (US$)1
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0.36
|
0.50
|
0.51
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(29.2%)
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(28.0%)
|
|
Total loans
|
19,100,415
|
18,876,079
|
17,792,081
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7.4%
|
1.2%
|
|
Deposits
|
14,115,349
|
14,082,232
|
13,392,489
|
5.4%
|
0.2%
|
|
Shareholders’ equity
|
2,194,025
|
2,134,778
|
2,065,995
|
6.2%
|
2.8%
|
|
Net interest margin
|
4.7%
|
5.5%
|
5.3%
|
||
|
Efficiency ratio
|
41.8%
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39.9%
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36.8%
|
||
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Return on average equity2
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15.0%
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21.6%
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23.3%
|
||
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NPL / Total loans3
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3.21%
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3.17%
|
2.92%
|
||
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Coverage NPLs
|
91.0%
|
92.0%
|
100.7%
|
||
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Risk index4
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2.92%
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2.91%
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2.94%
|
||
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Cost of credit5
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1.94%
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1.92%
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1.76%
|
||
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Core capital ratio
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10.9%
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10.7%
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11.2%
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||
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BIS ratio
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13.9%
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13.7%
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14.8%
|
||
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Branches
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497
|
499
|
499
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||
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ATMs
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2,011
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2,001
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1,949
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||
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Employees
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11,679
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11,713
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11,572
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||
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1.
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The change in earnings per ADR may differ from the change in earnings per share due to exchange rate movements. Earnings per ADR was calculated using the Observed Exchange Rate Ch$472.54 per US$ as of March 31, 2013.
|
|
2.
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Annualized Quarterly net income attributable to shareholders / Average equity attributable to shareholders in the quarter.
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|
3.
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NPLs: Non-performing loans: full balance of loans with one installment 90 days or more overdue.
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|
4.
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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.
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5.
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Cost of credit: Provision expenses annualized divided by total loans.
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1 On January 1, 2013, the Bank applied the modifications to IAC 19 relating to Employee Pension Benefits. This change was applied retroactively to 2012 figures which resulted in lower assets and liabilities of Ch$786 million and a higher net income of Ch$315 million, all charged to 4Q12 figures in this report.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
4
SECTION 2: BALANCE SHEET ANALYSIS
LOANS
Loan growth continues to accelerate in the markets the Bank has targeted for growth in 2013
|
Loans
|
Quarter ended,
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% Change
|
|||
|
(Ch$ million)
|
Mar-13
|
Dec-12
|
Mar-12
|
Mar. 13 / 12
|
Mar. 13 /
Dec. 12
|
|
Total loans to individuals1
|
9,837,213
|
9,741,412
|
9,376,934
|
4.9%
|
1.0%
|
|
Consumer loans
|
3,165,550
|
3,115,477
|
2,963,104
|
6.8%
|
1.6%
|
|
Residential mortgage loans
|
5,309,837
|
5,271,581
|
5,162,473
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2.9%
|
0.7%
|
|
SMEs
|
2,860,666
|
2,821,060
|
2,604,565
|
9.8%
|
1.4%
|
|
Total retail lending
|
12,697,879
|
12,562,472
|
11,981,499
|
6.0%
|
1.1%
|
|
Institutional lending
|
369,751
|
355,518
|
347,818
|
6.3%
|
4.0%
|
|
Middle-Market & Real estate
|
4,236,766
|
4,058,693
|
3,692,576
|
14.7%
|
4.4%
|
|
Corporate
|
1,806,957
|
1,863,595
|
1,881,429
|
(4.0%)
|
(3.0%)
|
|
Total loans 2
|
19,100,415
|
18,876,079
|
17,792,081
|
7.4%
|
1.2%
|
|
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 1Q13, total loans increased 1.2% QoQ and 7.4% YoY. In the quarter, loan growth continued to accelerate in the markets the Bank is targeting the most: high-income individuals, SMEs and middle market of companies. Loans in these combined markets increased 3.1% QoQ and 11.4% YoY. This is in line with the Bank’s strategy for 2013 of expanding loan volumes with a clear focus on spreads, net of provisions.
|
Loans to individuals, which include consumer, mortgage and commercial loans to individuals, increased of 1.0% QoQ in 3Q12 and 4.9% YoY. In the quarter, the Bank focused on expanding its loan portfolio in higher income segments, while remaining more selective in the mass consumer market. By products, total consumer loans increased 1.6% QoQ (6.8% YoY) and residential mortgage loans expanded 0.7% QoQ (2.9% YoY). Loans to high-income individuals increased 2.9% QoQ and 9.8% YoY. Lending to SMEs (defined as companies that sell less than Ch$1,200 million per year) expanded 1.4% QoQ (9.8% YoY), reflecting the Bank’s consistent focus on this segment.
|
 |
In 4Q12, the Bank also focused its loan growth in the middle-market segment (companies with annual sales between Ch$1,200 million and Ch$10,000 million per year), which increased 4.4% QoQ and 14.7% YoY. This segment continues to show healthy loan demand given the high level of
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
5
investment in the Chilean economy, which is expected to reach approximately 26% of GDP. This segment is also generating more and more business volumes in other areas such as cash management, which has helped to drive the rise in core deposits (See Funding).
In the large corporate segment (companies with sale over Ch$10,000 million per year or that are part of a large foreign or local economic group), loans decreased 3.0% QoQ and 4.0% YoY. The sharp turn-around in the cost of external funding for companies throughout the second half of 2012 resulted in lower local loan demand from these clients and pre-payment of some large corporate loans. The Bank’s non-lending business with these clients, especially cash management services continues to thrive.
FUNDING
Improving the funding mix
|
Funding
|
Quarter ended,
|
% Change
|
|||
|
(Ch$ million)
|
Mar-13
|
Dec-12
|
Mar-12
|
Mar. 13 / 12
|
Mar. 13 /
Dec. 12
|
|
Demand deposits
|
4,964,239
|
4,970,019
|
4,566,890
|
8.7%
|
(0.1%)
|
|
Time deposits
|
9,151,110
|
9,112,213
|
8,825,599
|
3.7%
|
0.4%
|
|
Total deposits
|
14,115,349
|
14,082,232
|
13,392,489
|
5.4%
|
0.2%
|
|
Mutual funds (off-balance sheet)
|
3,112,174
|
2,713,776
|
2,995,292
|
3.9%
|
14.7%
|
|
Total customer funds
|
17,227,523
|
16,796,008
|
16,387,781
|
5.1%
|
2.6%
|
|
Loans to deposits1
|
102.7%
|
101.6%
|
98.4%
|
||
|
1.
|
(Loans - marketable securities that fund mortgage loans) / (Time deposits + demand deposits).
|
|
Customer funds (deposits + mutual funds) increased 2.6% QoQ and 5.1% YoY. Total deposits grew 0.2% QoQ and grew 5.4% YoY. In the quarter, the Bank’s funding strategy was focused on increasing core deposits while lowering deposits from institutional sources, which are more expensive, as the Bank normalized its liquidity levels. This following the large liquidity surplus the Bank maintained throughout most of 2012. As a result, core deposits (demand and time deposits from our retail and corporate clients) expanded 12.4% YoY. Core deposits now represent 83% of the Bank’s total deposit base. This also resulted in lower deposits from institutional sources, lower bond issues and a decrease in interbank financing. This should help support net interest margins in 2013.
|
 |
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
6
Assets under management increased 14.7% QoQ as money returned to money market funds as inflation lowered, which reduced the attractiveness of time deposits denominated in UF, especially on behalf of institutional investors. We expect this business to continue to be volatile in line with general market and inflationary trends.
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL
Core capital ratio at 10.9%. Payout of 60% of 2012 earning to be proposed to shareholders
|
Shareholders' Equity
|
Quarter ended,
|
Change %
|
|||
|
(Ch$ million)
|
Mar-13
|
Dec-12
|
Mar-12
|
Mar. 13 / 12
|
Mar. 13 /
Dec. 12
|
|
Capital
|
891,303
|
891,303
|
891,303
|
0.0%
|
0.0%
|
|
Reserves
|
975,460
|
975,460
|
801,422
|
21.7%
|
0.0%
|
|
Valuation adjustment
|
(1,152)
|
(3,781)
|
(15,210)
|
(92.4%)
|
(69.5%)
|
|
Retained Earnings:
|
328,414
|
271,796
|
387,408
|
(71.2%)
|
20.8%
|
|
Retained earnings prior periods
|
388,282
|
0
|
435,084
|
(67.3%)
|
--%
|
|
Income for the period
|
80,879
|
388,282
|
118,355
|
(31.6%)
|
(79.2%)
|
|
Provision for mandatory dividend
|
(140,747)
|
(116,486)
|
(166,031)
|
(15.2%)
|
20.8%
|
|
Equity attributable to shareholders
|
2,194,025
|
2,134,778
|
2,064,923
|
6.3%
|
2.7%
|
|
Non-controlling interest
|
34,830
|
34,265
|
34,554
|
0.8%
|
1.6%
|
|
Total Equity
|
2,228,855
|
2,169,043
|
2,099,477
|
6.2%
|
2.7%
|
|
Quarterly ROAE
|
15.0%
|
21.6%
|
23.3%
|
||
Shareholders’ equity totaled Ch$2,194,025 million (US$4.6 billion) as of March 31, 2013. Core capital reached 10.9% and the Bank’s BIS ratio reached 13.9% at the same date. ROAE in the quarter reached 15.0%. Voting common shareholders’ equity is the sole component of our Tier I capital. Tier II declined in the quarter as some subordinated bonds no longer qualify as Tier II since they are approaching maturity.
|
Capital Adequacy
|
Quarter ended,
|
Change %
|
|||
|
(Ch$ million)
|
Mar-13
|
Dec-12
|
Mar-12
|
Mar. 13 / 12
|
Mar. 13 /
Dec. 12
|
|
Tier I (Core Capital)*
|
2,194,025
|
2,135,660
|
2,065,995
|
6.2%
|
2.7%
|
|
Tier II
|
596,933
|
599,656
|
673,110
|
(11.3%)
|
(0.5%)
|
|
Regulatory capital
|
2,790,957
|
2,735,316
|
2,739,104
|
1.9%
|
2.0%
|
|
Risk weighted assets
|
20,091,880
|
19,940,397
|
18,509,191
|
8.6%
|
0.8%
|
|
Tier I (Core capital) ratio
|
10.9%
|
10.7%
|
11.2%
|
||
|
BIS ratio
|
13.9%
|
13.7%
|
14.8%
|
||
*Calculated based on 2012 Financials and does not include accounting change introduced in 1Q13.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
7
The Bank’s Board will also submit for shareholder approval on April 29, 2013 its annual dividend equivalent to 60% of 2012 net income (Ch$1.24/share) equivalent to a dividend yield of 3.8% on the day before the ex-dividend date in Chile. The prudent management of the Bank’s capital ratios and high profitability has permitted the Bank to continue paying attractive dividends without issuing new shares since 2002.
SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT
NET INTEREST INCOME
Client margins remain stable QoQ. NIM declines as inflation decelerates
|
Net Interest Income / Margin
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Client net interest income1
|
271,696
|
273,022
|
264,889
|
2.6%
|
(0.5%)
|
|
Non-client net interest income2
|
(25,215)
|
9,969
|
1,183
|
--%
|
--%
|
|
Net interest income
|
246,481
|
282,991
|
266,072
|
(7.4%)
|
(12.9%)
|
|
Average interest-earning assets
|
20,923,043
|
20,762,771
|
20,119,312
|
4.0%
|
0.8%
|
|
Average loans
|
18,942,547
|
18,666,166
|
17,537,743
|
8.0%
|
1.5%
|
|
Interest earning asset yield3
|
8.1%
|
10.1%
|
10.0%
|
||
|
Cost of funds4
|
3.5%
|
4.7%
|
4.8%
|
||
|
Client net interest margin5
|
5.7%
|
5.9%
|
6.0%
|
||
|
Net interest margin (NIM)6
|
4.7%
|
5.5%
|
5.3%
|
||
|
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets
|
34.3%
|
32.8%
|
32.6%
|
||
|
Quarterly inflation rate7
|
0.13%
|
1.11%
|
1.07%
|
||
|
Central Bank reference rate
|
5.00%
|
5.00%
|
5.00%
|
||
|
Avg. 10 year Central Bank yield (real)
|
2.62%
|
2.45%
|
2.45%
|
||
|
1.
|
Client net interest income is mainly net interest income from the from all client activities such as loans and deposits minus the internal transfer rate. See footnote 3 at the end of this page.
|
|
2.
|
Non-client interest income is net interest income mainly from the Bank’s ALCO positions and treasury. See footnote 3 at the end of this page.
|
|
3.
|
Interest income divided by interest earning assets.
|
|
4.
|
Interest expense divided by interest bearing liabilities + demand deposits.
|
|
5.
|
Client net interest income annualized divided by average loans
|
|
6.
|
Net interest income divided by average interest earning assets annualized.
|
|
7.
|
Inflation measured as the variation of the Unidad de Fomento in the quarter.
|
In 1Q13, Net interest income decreased 12.9% QoQ and 7.4% YoY. The Net interest margin (NIM) in 1Q13 reached 4.7% compared to 5.5% in 4Q12 and 5.3% in 1Q12. In order to improve the explanation of margins, we have divided the analysis of net interest income between client interest income2 and non-client net interest income.
2 In order to explain better the evolution of net interest income, we have divided net interest income between client net interest income
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
8
Client net interest income. In 1Q13, client net interest income was flat QoQ and grew 2.6% YoY. Average loans increased 1.5% QoQ and 8.0% YoY. Client net interest margin (defined as client net interest income divided by average loans) reached 5.7% in 1Q13 compared to 5.9% in 4Q12 and 6.0% in 1Q12. The improved funding mix and stable pricing policies has kept client margins relatively unchanged since 4Q12. Compared to 1Q12, client margins have declined mainly because of the Bank’s focus on loan growth in high-income individuals, SMEs and Corporates and lower growth in the low end of the consumer market. We expect as the year progresses to achieve a higher client margin, net of provision expenses, even though this results in slightly lower client margins. Moreover, the funding mix has improved, reflected in the ratio of free funds to interest earning assets that reached 34.3% in 1Q13 compared to 32.8% in 4Q12 and 32.6% in 1Q12.
|
Non-client net interest income. The volatility of our total net interest margin and income is mainly due to the quarterly fluctuations of inflation. In 1Q13, the variation of the Unidad de Fomento (an inflation indexed currency unit), was 0.13% compared to 1.11% in 4Q12 and 1.07% in 1Q12. It is important to point out that the Bank has more assets than liabilities linked to inflation and, as a result, margins have a positive sensitivity to variations in inflation. The gap between assets and liabilities indexed to the UF averaged approximately US$7.5 billion in 1Q13. This signifies that for every 100 basis point change in inflation, our net interest income increases or decrease by US$75 million, all other factors equal. Therefore, the QoQ decline in inflation explains largely the sharp reduction in non-client net interest income in 1Q13 compared to 4Q12 and 1Q12.
|
 |
For 2013, the evolution of margins should reflect various factors. Going forward, we expect UF inflation to normalize at an annual rate of approximately 2.4-2.5% for 2013 or 0.7% per remaining quarter, subject to further revisions. In 2013, the negative effects of possible regulations regarding maximum rates may have a negative impact on margins. The final law regulating this change is still being discussed in Congress and there is no clarity as to when it will be approved. To counterbalance this we expect: (1) healthier loan growth both in terms of volumes and in terms of margins, post provision expense and, (2) an improved funding mix via healthy growth of core deposits.
and non-client net interest income. Client net interest income is net interest income from all client activities such as loans and deposits minus the internal transfer rate. Non-client interest income is net interest income from Bank’s inflation gap, the financial cost of hedging, the financial cost of the Bank’s structural liquidity position, net interest income from treasury positions and the interest expense of the Bank’s financial investments classified as trading, since interest income from this portfolio is recognized as financial transactions net.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
9
PROVISION FOR LOAN LOSSES AND ASSET QUALITY
Asset quality in consumer lending improving
|
Provision for loan losses
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 / 1Q12
|
1Q13 / 4Q12
|
|
Commercial loans
|
(27,394)
|
(25,366)
|
(14,905)
|
83.8%
|
8.0%
|
|
Residential mortgage loans
|
(6,921)
|
(5,895)
|
(2,490)
|
178.0%
|
17.4%
|
|
Consumer loans
|
(58,543)
|
(59,126)
|
(60,886)
|
(3.8%)
|
(1.0%)
|
|
Net provisions for loan losses
|
(92,858)
|
(90,387)
|
(78,281)
|
18.6%
|
2.7%
|
|
Total loans1
|
19,100,415
|
18,876,079
|
17,792,081
|
7.4%
|
1.2%
|
|
Total reserves (RLL)
|
557,564
|
550,122
|
522,728
|
6.7%
|
1.4%
|
|
Non-performing loans2 (NPLs)
|
612,379
|
597,767
|
519,283
|
17.9%
|
2.4%
|
|
NPLs commercial loans
|
343,764
|
320,461
|
263,843
|
30.3%
|
7.3%
|
|
NPLs residential mortgage loans
|
154,334
|
159,802
|
156,280
|
(1.2%)
|
(3.4%)
|
|
NPLs consumer loans
|
114,281
|
117,504
|
99,160
|
15.2%
|
(2.7%)
|
|
Cost of credit3
|
1.96%
|
1.94%
|
1.79%
|
||
|
Risk index4 (RLL / Total loans)
|
2.92%
|
2.91%
|
2.94%
|
||
|
NPL / Total loans
|
3.21%
|
3.17%
|
2.92%
|
||
|
NPL / Commercial loans
|
3.24%
|
3.06%
|
2.73%
|
||
|
NPL / Residential mortgage loans
|
2.91%
|
3.03%
|
3.03%
|
||
|
NPL / consumer loans
|
3.61%
|
3.77%
|
3.35%
|
||
|
Coverage of NPLs5
|
91.0%
|
92.0%
|
100.7%
|
||
|
Coverage of NPLs ex-mortgage6
|
113.3%
|
117.4%
|
134.1%
|
||
|
Coverage of commercial NPLs
|
75.6%
|
78.3%
|
90.5%
|
||
|
Coverage of residential mortgage NPLs
|
25.1%
|
22.5%
|
23.1%
|
||
|
Coverage of consumer NPLs
|
226.4%
|
224.0%
|
249.9%
|
||
|
1.
|
Excludes interbank loans.
|
|
2.
|
NPLs: Non-performing loans: full balance of loans with one installment 90 days or more overdue.
|
|
3.
|
Cost of credit: Quarterly provision expense annualized divided by average loans
|
|
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.
|
|
6.
|
Loan loss reserves of commercial + consumer loans divided by NPLs of commercial and consumer loans
|
Net provision for loan losses in the quarter totaled Ch$92,858 million an increase of 2.7% QoQ and 18.6% YoY.
Net provision expense in consumer loans, which represent 63% of total provision expense, decreased 1.0% QoQ and 3.8% YoY. This reflects the different measure carried out by the Bank to improve credit risk. This includes focus loan growth in the higher end of the consumer market, tightening admissions policies, improving the collections process and updating the consumer provisioning models (performed in 3Q12).
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
10
|
The measures mentioned above have gradually resulted in a stabilization of asset quality in consumer lending. Consumer NPLs decreased 2.7% QoQ and increased 15.2% YoY. The coverage of consumer NPLs reached 226.4% in 1Q13 compared to 224.0% in 4Q12. At the same time, the amount of impaired consumer loans (consumer NPLs + renegotiated consumer loans) has evolved favorably. This tends to be a leading indicator for the evolution of future charge-offs.
|
 |
|
The improved collection efforts have also led to an important rise in loan loss recoveries, especially in consumer lending. Total loan loss recoveries increased 113.3% YoY. Total loan loss recoveries increased 113.3% YoY. In this same period, consumer loan loss recoveries increased 146.3% YoY. The decline compared to 4Q12 is seasonal due to the vacation season in 1Q13.
|
 |
|
Provision expense for mortgage residential loans increased 17.4% QoQ and 178% YoY. The YoY increase was mainly due to higher charge-offs of mortgage loans that totaled Ch$4,198 million. Total NPLs in mortgage loans decreased 3.4% QoQ and 1.2% YoY, also reflecting the stricter credit risk policies the Bank is enforcing in retail banking. Mortgage loan NPLs reached 2.9% in 1Q13, flat compared to 4Q12 and 1Q12. Including collateral, the coverage of residential mortgage NPLs reached 113% as of March 2013. The risk index (loan loss allowances for mortgage in the balance sheet over total mortgage loans) reached 0.7% and has been stable for an extended period.
|
 |
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
11
Provision expense in commercial loans increased 8.0% QoQ and 83.8% YoY. Commercial loan NPLs reached 3.2% in 1Q13 compared to 3.1% in 4Q12 and 2.7% in 1Q12. The rise in NPLs in commercial loans is mainly due to an increase in NPLs in SMEs, which has been the fastest growing segment. The Bank experienced a rise in NPLs mainly among SME loans granted through the government’s guarantee program designed to aid the entrance of SME to the banking market. Therefore, the rise in NPLs does not necessarily imply a rise in expected losses as these loans are guaranteed by the state. For this reason, coverage ratio of commercial loan NPLs has fallen to 75.6% in the quarter while the Bank’s risk index has remained stable at 2.9%. We expect a similar trend for the rest of 2013 in SME NPLs, risk index and coverage ratios.
|
Coverage of total NPLs in 1Q13 reached 91.0%. Excluding residential mortgage loans that have a lower coverage ratio due to the value of residential property collateral, the coverage ratio reached 113%.
|
 |
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
12
NET FEE INCOME
Fee income growth impacted by new regulations and negative client growth in the mass consumer segment
|
Fee Income
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Credit, debit & ATM card fees
|
13,107
|
12,175
|
15,017
|
(12.7%)
|
7.7%
|
|
Collection fees
|
11,325
|
9,402
|
15,802
|
(28.3%)
|
20.4%
|
|
Asset management
|
8,390
|
8,047
|
8,609
|
(2.5%)
|
4.3%
|
|
Guarantees, pledges and other contingent operations
|
7,405
|
7,456
|
6,935
|
6.8%
|
(0.7%)
|
|
Checking accounts
|
7,126
|
7,024
|
7,238
|
(1.5%)
|
1.5%
|
|
Insurance brokerage
|
5,746
|
8,160
|
8,186
|
(29.8%)
|
(29.6%)
|
|
Lines of credit
|
1,991
|
2,203
|
2,449
|
(18.7%)
|
(9.4%)
|
|
Fees from brokerage and custody of securities
|
1,796
|
1,945
|
1,982
|
(9.4%)
|
(7.7%)
|
|
Other Fees
|
7,363
|
10,425
|
2,473
|
197.7%
|
(29.4%)
|
|
Total fees
|
64,254
|
66,837
|
68,691
|
(6.5%)
|
(3.9%)
|
Net fee income decreased 3.9% QoQ and 6.5% YoY. The Bank continued to increase its client base and cross-selling indicators, especially in the middle-upper income segments while client growth in the mass consumer segment has been negative. This in the short-term results in lower fees, especially credit card, checking account and line of credit fees, but in the medium-term will result in lower provision expenses. The introduction of the new insurance brokerage regulation for mortgage loans explains the 29.6% QoQ and 29.8% YoY fall in insurance brokerage fees.
The Bank’s Transformation Plan continues to be implemented which should help bolster fees in 2013. This is the largest overhaul and reorganization of the Bank’s middle and lower income business segments in the last decade. The installation of the new CRM, a corner-piece of this initiative, is starting to improve the Bank’s client service indicators and productivity.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
13
NET RESULTS FROM FINANCIAL TRANSACTIONS
Higher yield on liquidity portfolio boosts results from financial transactions
|
Financial Transactions*
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Net income from financial operations
|
(16,873)
|
(31,138)
|
(34,196)
|
(50.7%)
|
(45.8%)
|
|
Foreign exchange profit (loss), net
|
39,135
|
49,272
|
53,499
|
(26.8%)
|
(20.6%)
|
|
Net results from financial transactions
|
22,262
|
18,134
|
19,303
|
15.3%
|
22.8%
|
|
*
|
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 totaled a gain of Ch$22,262 million in 1Q13, a 22.8% QoQ and 15.3% YoY increase. In order to understand more clearly these line items, we present them by business area in the table below.
|
Financial Transactions
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 / 1Q12
|
1Q13 / 4Q12
|
|
Santander Global Connect1
|
10,725
|
14,051
|
14,575
|
(26.4%)
|
(23.7%)
|
|
Market-making
|
7,237
|
7,592
|
11,310
|
(36.0%)
|
(4.7%)
|
|
Client treasury services
|
17,963
|
21,643
|
25,885
|
(30.6%)
|
(17.0%)
|
|
Non-client treasury income
|
4,300
|
(3,509)
|
(6,582)
|
--%
|
--%
|
|
Net results from financial transactions
|
22,262
|
18,134
|
19,303
|
15.3%
|
22.8%
|
|
1.
|
Santander Global Connect is the Bank’s commercial platform for selling treasury products to our clients.
|
Client treasury services totaled Ch$17,963 million in 1Q13 and decreased 17.0% QoQ and 30.6% YoY. After a very active 4Q12 in corporate treasury services, 1Q13 saw an important reduction in volatility, especially in the foreign trade market, which reduced demand for currency protection on behalf of clients. Non-client treasury services recorded a gain of Ch$4,300 million, mainly reflecting the normalization of liquidity levels of the Banks following the large surplus the Bank maintained throughout most of 2012. This has resulted in higher interest income from the Bank’s liquidity portfolio comprised mainly of Central Bank instruments, but which also now includes other high-grade instruments such as local bank deposits, that yield a higher rate than Central bank instruments.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
14
OPERATING EXPENSES AND EFFICIENCY
Growth of cost moderates
|
Operating Expenses
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Personnel expenses
|
(71,533)
|
(76,488)
|
(69,400)
|
3.1%
|
(6.5%)
|
|
Administrative expenses
|
(48,032)
|
(48,127)
|
(44,084)
|
9.0%
|
(0.2%)
|
|
Depreciation, amortization and impairment
|
(15,680)
|
(16,050)
|
(12,126)
|
29.3%
|
(2.3%)
|
|
Operating expenses
|
(135,245)
|
(140,665)
|
(125,610)
|
7.7%
|
(3.9%)
|
|
Branches
|
497
|
499
|
499
|
(0.4%)
|
(0.4%)
|
|
ATMS
|
2,011
|
2,001
|
1,949
|
3.2%
|
0.5%
|
|
Employees
|
11,679
|
11,713
|
11,572
|
0.9%
|
(0.3%)
|
|
Efficiency ratio1
|
41.8%
|
39.9%
|
36.8%
|
||
|
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 1Q13 decreased 3.9% QoQ and increased 7.7% YoY. The efficiency ratio reached 41.8% in 1Q13 compared to 39.9% in 4Q12 and 36.8% in 1Q12. The QoQ decline in costs was mainly due to seasonal factors related to the summer vacation season.
The 7.7% YoY increase in operating expenses was mainly due to the 9.0% increase in administrative expenses. The Bank continued with its Transformation Projects aimed at enhancing productivity in retail banking. Rent expenses have also been rising, since the Bank has sold most of its branches and now rents them. Branches are risk weighted at 100% and, therefore, from a capital perspective, it is more efficient to rent them than to own them. Going forward, though, administrative expenses should grow at a slower pace as many of these projects are finalizing.
|
The 3.1% YoY increase in personnel expenses in 1Q13 reflects the 0.9% rise in headcount plus the rise in salaries in the year due to inflation in 2012. As of March 2013, headcount totaled 11,679 employees and increase of 0.9% compared to 1Q12. The main area of headcount growth has been the Bank’s collection areas offset by lower headcount at Banefe’s sales force. As headcount should remain stable for the remainder of the year, personnel expenses should see moderate growth similar to 1Q13 levels for the remainder of the year.
|
 |
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
15
OTHER INCOME AND EXPENSES
|
Other Income and Expenses
|
Quarter
|
Change %
|
|||
|
(Ch$ million)
|
1Q13
|
4Q12
|
1Q12
|
1Q13 /
1Q12
|
1Q13 /
4Q12
|
|
Other operating income
|
4,569
|
4,630
|
3,982
|
14.7%
|
(1.3%)
|
|
Other operating expenses
|
(14,263)
|
(20,268)
|
(16,365)
|
(12.8%)
|
(29.6%)
|
|
Other operating income, net
|
(9,694)
|
(15,638)
|
(12,383)
|
(21.7%)
|
(38.0%)
|
|
Income from investments in other companies
|
482
|
(983)
|
447
|
7.8%
|
(149.0%)
|
|
Income tax expense
|
(14,237)
|
(5,790)
|
(19,081)
|
(25.4%)
|
145.9%
|
|
Income tax rate
|
14.9%
|
4.8%
|
13.8%
|
||
Other operating income, net, totaled a loss of Ch$9,694 million in 1Q13. The lower loss compared to previous periods was mainly due to higher gains from the sale and recovery of repossessed assets, which is in line with the higher charge-offs of mortgage loans. At the same time the loss from operational charge-offs and provisions for other contingencies also decreased compared to 4Q12 and 1Q12.
The higher income tax rate in 1Q13 was mainly due to the rise in the statutory corporate tax rate to 20% in 2013 offset by non-repeatable tax efficiencies achieved in 1Q13. Additionally, in 4Q12 our tax expenses were positively affected by the recognition of higher deferred tax assets. Congress approved a law that raised the statutory corporate tax rate to 20% in 2013 and this new rate was applied to deferred taxes in 4Q12, resulting in a lower effective tax rate. For the remainder of 2013, the Bank should be paying an effective tax rate closer to 17-18%.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
16
SECTION 4: CREDIT RISK RATINGS
International ratings
The Bank has credit ratings from three leading international agencies with no changes in 1Q13.
|
Moody’s
|
Rating
|
|
Foreign currency bank deposits
|
Aa3
|
|
Senior bonds
|
Aa3
|
|
Subordinated debt
|
A1
|
|
Bank Deposits in Local Currency
|
Aa3
|
|
Bank financial strength
|
C+
|
|
Short-term deposits
|
P-1
|
|
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
|
|
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
|
|
Viability rating
|
a+
|
Local ratings:
Our local ratings, the highest in Chile, are the following:
|
Local ratings
|
Fitch
Ratings
|
Feller
Rate
|
|
Shares
|
1CN1
|
1CN1
|
|
Short-term deposits
|
N1+
|
N1+
|
|
Long-term deposits
|
AAA
|
AAA
|
|
Mortgage finance bonds
|
AAA
|
AAA
|
|
Senior bonds
|
AAA
|
AAA
|
|
Subordinated bonds
|
AA
|
AA+
|
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
17
SECTION 5: SHARE PERFORMANCE
As of March 2013
|
ADR price3 (US$) 3M13
|
Local share price (Ch$) 3M13
|
|||
|
03/31/13:
|
28.47
|
03/31/13:
|
33.41
|
|
|
Maximum (3M12):
|
30.59
|
Maximum (3M12):
|
36.23
|
|
|
Minimum (3M12):
|
28.34
|
Minimum (3M12):
|
33.41
|
|
Market Capitalization: US$13,413 million
|
Dividends:
|
||||
|
Year paid
|
Ch$/share
|
% of previous year
|
|||
|
P/E 12 month trailing*:
|
17.95
|
earnings | |||
|
P/BV (03/31/13)**:
|
2.87
|
2009:
|
1.13
|
65%
|
|
|
Dividend yield***:
|
3.8%
|
2010:
|
1.37
|
60%
|
|
|
2011:
|
1.52
|
60%
|
|||
|
* Price as of March 31, 2013 / 12mth. earnings
|
2012:
|
1.39
|
60%
|
||
|
** Price as of March 31, 2013 / Book value as of 03/31/13
|
2013:
|
1.24
|
60%
|
||
|
*** Based on closing price on record date of last dividend payment.
|
3 On Oct. 22, 2012, the ratio of common share per ADR was changed from 1,039 shares per ADR to 400 shares per ADR.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
18
ANNEX 1: BALANCE SHEET
|
Unaudited Balance Sheet
|
Mar-13
|
Mar-13
|
Dec-12
|
Mar. 13 / Dec. 12
|
||||||||||||
|
Assets
|
US$ths
|
Ch$ million
|
% Chg.
|
|||||||||||||
|
Cash and balances from Central Bank
|
2,607,739 | 1,230,201 | 1,250,414 | (1.6 | %) | |||||||||||
|
Funds to be cleared
|
1,317,567 | 621,562 | 520,267 | 19.5 | % | |||||||||||
|
Financial assets held for trading
|
530,026 | 250,040 | 338,287 | (26.1 | %) | |||||||||||
|
Investment collateral under agreements to repurchase
|
- | - | 6,993 | -- | % | |||||||||||
|
Derivatives
|
2,740,759 | 1,292,953 | 1,293,212 | (0.0 | %) | |||||||||||
|
Interbank loans
|
296,693 | 139,965 | 90,527 | 54.6 | % | |||||||||||
|
Loans, net of loan loss allowances
|
39,306,520 | 18,542,851 | 18,325,957 | 1.2 | % | |||||||||||
|
Available-for-sale financial assets
|
3,971,337 | 1,873,478 | 1,826,158 | 2.6 | % | |||||||||||
|
Held-to-maturity investments
|
- | - | - | -- | % | |||||||||||
|
Investments in other companies
|
17,128 | 8,080 | 7,614 | 6.1 | % | |||||||||||
|
Intangible assets
|
163,557 | 77,158 | 87,347 | (11.7 | %) | |||||||||||
|
Fixed assets
|
338,849 | 159,852 | 162,214 | (1.5 | %) | |||||||||||
|
Current tax assets
|
41,933 | 19,782 | 10,227 | 93.4 | % | |||||||||||
|
Deferred tax assets
|
398,497 | 187,991 | 186,407 | 0.8 | % | |||||||||||
|
Other assets
|
1,241,183 | 585,528 | 655,217 | (10.6 | %) | |||||||||||
|
Total Assets
|
52,971,788 | 24,989,441 | 24,760,841 | 0.9 | % | |||||||||||
|
Liabilities and Equity
|
||||||||||||||||
|
Demand deposits
|
10,523,029 | 4,964,239 | 4,970,019 | (0.1 | %) | |||||||||||
|
Funds to be cleared
|
977,583 | 461,175 | 284,953 | 61.8 | % | |||||||||||
|
Investments sold under agreements to repurchase
|
474,196 | 223,702 | 304,117 | (26.4 | %) | |||||||||||
|
Time deposits and savings accounts
|
19,398,219 | 9,151,110 | 9,112,213 | 0.4 | % | |||||||||||
|
Derivatives
|
2,509,518 | 1,183,865 | 1,146,161 | 3.3 | % | |||||||||||
|
Deposits from credit institutions
|
2,924,916 | 1,379,829 | 1,438,003 | (4.0 | %) | |||||||||||
|
Marketable debt securities
|
9,750,552 | 4,599,823 | 4,571,289 | 0.6 | % | |||||||||||
|
Other obligations
|
445,596 | 210,210 | 192,611 | 9.1 | % | |||||||||||
|
Current tax liabilities
|
1,189 | 561 | 525 | 6.9 | % | |||||||||||
|
Deferred tax liability
|
31,330 | 14,780 | 9,544 | 54.9 | % | |||||||||||
|
Provisions
|
487,089 | 229,784 | 221,089 | 3.9 | % | |||||||||||
|
Other liabilities
|
723,917 | 341,508 | 341,274 | 0.1 | % | |||||||||||
|
Total Liabilities
|
48,247,135 | 22,760,586 | 22,591,798 | 0.7 | % | |||||||||||
|
Equity
|
||||||||||||||||
|
Capital
|
1,889,355 | 891,303 | 891,303 | 0.0 | % | |||||||||||
|
Reserves
|
2,067,748 | 975,460 | 975,460 | 0.0 | % | |||||||||||
|
Unrealized gain (loss) Available-for-sale financial assets
|
(2,442 | ) | (1,152 | ) | (3,781 | ) | (69.5 | %) | ||||||||
|
Retained Earnings:
|
696,161 | 328,414 | 271,796 | 20.8 | % | |||||||||||
|
Retained earnings previous periods
|
823,067 | 388,282 | - | -- | % | |||||||||||
|
Net income
|
171,445 | 80,879 | 388,282 | (79.2 | %) | |||||||||||
|
Provision for mandatory dividend
|
(298,351 | ) | (140,747 | ) | (116,486 | ) | 20.8 | % | ||||||||
|
Total Shareholders' Equity
|
4,650,821 | 2,194,025 | 2,134,778 | 2.8 | % | |||||||||||
|
Minority Interest
|
73,831 | 34,830 | 34,265 | 1.6 | % | |||||||||||
|
Total Equity
|
4,724,653 | 2,228,855 | 2,169,043 | 2.8 | % | |||||||||||
|
Total Liabilities and Equity
|
52,971,788 | 24,989,441 | 24,760,841 | 0.9 | % | |||||||||||
Figures in US$ have been translated at the exchange rate of Ch$471.75. On January 1, 2013 the Bank began to apply the modifications to IAC 19 relating to Employee Pension Benefits. This change was applied retroactively to 2012 figures which resulted in lower assets and liabilities of Ch$786 million and a higher net income of Ch$315 million all charged to 4Q12 figures in this report.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
19
ANNEX 2: QUARTERLY INCOME STATEMENTS
|
Unaudited Quarterly Income Statement
|
1Q13 | 4Q12 | 1Q12 | 1Q13 / 1Q12 | 1Q13 / 4Q12 | |||||||||||||||
|
Ch$mn
|
% Chg.
|
|||||||||||||||||||
|
Interest income
|
425,797 | 524,918 | 502,833 | (15.3 | %) | (18.9 | %) | |||||||||||||
|
Interest expense
|
(179,316 | ) | (241,927 | ) | (236,761 | ) | (24.3 | %) | (25.9 | %) | ||||||||||
|
Net interest income
|
246,481 | 282,991 | 266,072 | (7.4 | %) | (12.9 | %) | |||||||||||||
|
Fee and commission income
|
87,528 | 89,735 | 90,935 | (3.7 | %) | (2.5 | %) | |||||||||||||
|
Fee and commission expense
|
(23,274 | ) | (22,898 | ) | (22,244 | ) | 4.6 | % | 1.6 | % | ||||||||||
|
Net fee and commission income
|
64,254 | 66,837 | 68,691 | (6.5 | %) | (3.9 | %) | |||||||||||||
|
Net income from financial operations
|
(16,873 | ) | (31,138 | ) | (34,196 | ) | (50.7 | %) | (45.8 | %) | ||||||||||
|
Foreign exchange profit (loss), net
|
39,135 | 49,272 | 53,499 | (26.8 | %) | (20.6 | %) | |||||||||||||
|
Total financial transactions, net
|
22,262 | 18,134 | 19,303 | 15.3 | % | 22.8 | % | |||||||||||||
|
Other operating income
|
4,569 | 4,630 | 3,982 | 14.7 | % | (1.3 | %) | |||||||||||||
|
Net operating profit before loan losses
|
337,566 | 372,592 | 358,048 | (5.7 | %) | (9.4 | %) | |||||||||||||
|
Provision for loan losses
|
(92,858 | ) | (90,387 | ) | (78,281 | ) | 18.6 | % | 2.7 | % | ||||||||||
|
Net operating profit
|
244,708 | 282,205 | 279,767 | (12.5 | %) | (13.3 | %) | |||||||||||||
|
Personnel salaries and expenses
|
(71,533 | ) | (76,488 | ) | (69,400 | ) | 3.1 | % | (6.5 | %) | ||||||||||
|
Administrative expenses
|
(48,032 | ) | (48,127 | ) | (44,084 | ) | 9.0 | % | (0.2 | %) | ||||||||||
|
Depreciation and amortization
|
(15,653 | ) | (16,048 | ) | (12,072 | ) | 29.7 | % | (2.5 | %) | ||||||||||
|
Impairment
|
(27 | ) | (2 | ) | (54 | ) | (50.0 | %) | -- | % | ||||||||||
|
Operating expenses
|
(135,245 | ) | (140,665 | ) | (125,610 | ) | 7.7 | % | (3.9 | %) | ||||||||||
|
Other operating expenses
|
(14,263 | ) | (20,268 | ) | (16,365 | ) | (12.8 | %) | (29.6 | %) | ||||||||||
|
Total operating expenses
|
(149,508 | ) | (160,933 | ) | (141,975 | ) | 5.3 | % | (7.1 | %) | ||||||||||
|
Operating income
|
95,200 | 121,272 | 137,792 | (30.9 | %) | (21.5 | %) | |||||||||||||
|
Income from investments in other companies
|
482 | (983 | ) | 447 | 7.8 | % | -- | % | ||||||||||||
|
Income before taxes
|
95,682 | 120,289 | 138,239 | (30.8 | %) | (20.5 | %) | |||||||||||||
|
Income tax expense
|
(14,237 | ) | (5,790 | ) | (19,093 | ) | (25.4 | %) | 145.9 | % | ||||||||||
|
Net income from ordinary activities
|
81,445 | 114,499 | 119,146 | (31.6 | %) | (28.9 | %) | |||||||||||||
|
Net income discontinued operations
|
- | - | - | -- | % | -- | % | |||||||||||||
|
Net income attributable to:
|
||||||||||||||||||||
|
Minority interest
|
566 | 782 | 791 | (28.4 | %) | (27.6 | %) | |||||||||||||
|
Net income attributable to shareholders
|
80,879 | 113,717 | 118,355 | (31.7 | %) | (28.9 | %) | |||||||||||||
Figures in US$ have been translated at the exchange rate of Ch$471.75. On January 1, 2013, the Bank began to apply the modifications to IAC 19 relating to Employee Pension Benefits. This change was applied retroactively to 2012 figures which resulted in lower assets and liabilities of Ch$786 million and a higher net income of Ch$315 million all charged to 4Q12 figures in this report.
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
20
ANNEX 3: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION
|
(Ch$ millions)
|
Mar-12
|
Jun-12
|
Sep-12
|
Dec-12
|
Mar-13
|
|||||||||||||||
|
Loans
|
||||||||||||||||||||
|
Consumer loans
|
2,963,104 | 2,987,880 | 3,039,998 | 3,115,477 | 3,165,550 | |||||||||||||||
|
Residential mortgage loans
|
5,162,473 | 5,221,914 | 5,208,217 | 5,271,581 | 5,309,837 | |||||||||||||||
|
Commercial loans
|
9,666,504 | 10,164,678 | 10,254,959 | 10,489,021 | 10,625,028 | |||||||||||||||
|
Total loans
|
17,792,081 | 18,374,472 | 18,503,174 | 18,876,079 | 19,100,415 | |||||||||||||||
|
Allowance for loan losses
|
(522,728 | ) | (518,331 | ) | (552,138 | ) | (550,152 | ) | (557,564 | ) | ||||||||||
|
Total loans, net of allowances
|
17,269,353 | 17,856,141 | 17,951,034 | 18,325,961 | 18,542,854 | |||||||||||||||
|
Loans by segment
|
||||||||||||||||||||
|
Individuals
|
9,376,934 | 9,534,018 | 9,613,857 | 9,741,412 | 9,837,213 | |||||||||||||||
|
SMEs
|
2,604,565 | 2,658,077 | 2,745,928 | 2,821,060 | 2,860,666 | |||||||||||||||
|
Total retail lending
|
11,981,499 | 12,192,095 | 12,359,785 | 12,562,472 | 12,697,879 | |||||||||||||||
|
Institutional lending
|
347,818 | 366,862 | 355,119 | 355,518 | 369,751 | |||||||||||||||
|
Middle-Market & Real estate
|
3,692,576 | 3,848,479 | 3,918,324 | 4,058,693 | 4,236,766 | |||||||||||||||
|
Corporate
|
1,881,429 | 2,006,270 | 1,874,749 | 1,863,595 | 1,806,957 | |||||||||||||||
|
Customer funds
|
||||||||||||||||||||
|
Demand deposits
|
4,566,890 | 4,624,570 | 4,601,160 | 4,970,019 | 4,964,239 | |||||||||||||||
|
Time deposits
|
8,825,599 | 9,913,093 | 9,487,610 | 9,112,213 | 9,151,110 | |||||||||||||||
|
Total deposits
|
13,392,489 | 14,537,663 | 14,088,770 | 14,082,232 | 14,115,349 | |||||||||||||||
|
Mutual funds (Off balance sheet)
|
2,995,292 | 2,944,482 | 3,080,130 | 2,713,776 | 3,112,174 | |||||||||||||||
|
Total customer funds
|
16,387,781 | 17,482,145 | 17,168,900 | 16,796,008 | 17,227,523 | |||||||||||||||
|
Loans / Deposits1
|
98.4 | % | 96.5 | % | 98.7 | % | 101.6 | % | 102.7 | % | ||||||||||
|
Average balances
|
||||||||||||||||||||
|
Avg. interest earning assets
|
20,119,312 | 20,362,279 | 20,410,407 | 20,762,771 | 20,923,043 | |||||||||||||||
|
Avg. loans
|
17,537,743 | 18,127,164 | 18,546,119 | 18,666,166 | 18,942,547 | |||||||||||||||
|
Avg. assets
|
24,918,317 | 24,957,219 | 25,106,995 | 24,995,465 | 24,843,979 | |||||||||||||||
|
Avg. demand deposits
|
4,527,917 | 4,749,885 | 4,598,283 | 4,716,789 | 5,020,202 | |||||||||||||||
|
Avg equity
|
2,035,332 | 2,014,260 | 2,042,929 | 2,101,849 | 2,159,904 | |||||||||||||||
|
Avg. free funds
|
6,563,249 | 6,764,145 | 6,641,212 | 6,818,638 | 7,180,106 | |||||||||||||||
|
Capitalization
|
||||||||||||||||||||
|
Risk weighted assets
|
18,509,191 | 19,572,225 | 19,479,092 | 19,940,397 | 20,091,880 | |||||||||||||||
|
Tier I (Shareholders' equity)
|
2,065,995 | 2,028,612 | 2,058,231 | 2,134,778 | 2,194,025 | |||||||||||||||
|
Tier II
|
673,110 | 659,788 | 642,650 | 599,656 | 596,933 | |||||||||||||||
|
Regulatory capital
|
2,739,104 | 2,688,401 | 2,700,881 | 2,735,316 | 2,790,957 | |||||||||||||||
|
Tier I ratio
|
11.2 | % | 10.4 | % | 10.6 | % | 10.7 | % | 10.9 | % | ||||||||||
|
BIS ratio
|
14.8 | % | 13.7 | % | 13.9 | % | 13.7 | % | 13.9 | % | ||||||||||
|
Profitability & Efficiency
|
||||||||||||||||||||
|
Net interest margin
|
5.3 | % | 5.0 | % | 4.7 | % | 5.5 | % | 4.7 | % | ||||||||||
|
Efficiency ratio
|
36.8 | % | 41.0 | % | 42.4 | % | 39.9 | % | 41.8 | % | ||||||||||
|
Avg. Free funds / interest earning assets
|
32.6 | % | 33.2 | % | 32.5 | % | 32.8 | % | 34.3 | % | ||||||||||
|
Return on avg. equity
|
23.3 | % | 21.0 | % | 9.9 | % | 21.6 | % | 15.0 | % | ||||||||||
|
Return on avg. assets
|
1.9 | % | 1.7 | % | 0.8 | % | 1.8 | % | 1.3 | % | ||||||||||
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
21
|
Mar-12
|
Jun-12
|
Sep-12
|
Dec-12
|
Mar-13
|
||||||||||||||||
| Asset quality | ||||||||||||||||||||
|
Non-performing loans (NPLs)2
|
519,283 | 529,869 | 561,730 | 597,767 | 612,379 | |||||||||||||||
|
Loan loss reserves4
|
522,728 | 518,331 | 552,138 | 550,152 | 557,564 | |||||||||||||||
|
NPLs / total loans
|
2.92 | % | 2.88 | % | 3.04 | % | 3.17 | % | 3.21 | % | ||||||||||
|
Coverage of NPLs (Loan loss allowance / NPLs)
|
100.66 | % | 97.82 | % | 98.29 | % | 92.03 | % | 91.05 | % | ||||||||||
|
Risk index (Loan loss allowances / Loans)4
|
2.94 | % | 2.82 | % | 2.98 | % | 2.91 | % | 2.92 | % | ||||||||||
|
Cost of credit (prov. expense / loans)
|
1.76 | % | 1.71 | % | 2.58 | % | 1.92 | % | 1.94 | % | ||||||||||
|
Network
|
||||||||||||||||||||
|
Branches
|
499 | 499 | 496 | 499 | 497 | |||||||||||||||
|
ATMs
|
1,949 | 1,966 | 1,966 | 2,001 | 2,011 | |||||||||||||||
|
Employees
|
11,572 | 11,621 | 11,692 | 11,713 | 11,679 | |||||||||||||||
|
Market information (period-end)
|
||||||||||||||||||||
|
Net income per share (Ch$)
|
0.63 | 0.56 | 0.27 | 0.60 | 0.43 | |||||||||||||||
|
Net income per ADR (US$)
|
0.51 | 0.44 | 0.23 | 0.50 | 0.36 | |||||||||||||||
|
Stock price
|
40.54 | 37.34 | 33.55 | 33.72 | 33.41 | |||||||||||||||
|
ADR price
|
33.14 | 29.83 | 28.2 | 28.49 | 28.47 | |||||||||||||||
|
Market capitalization (US$mn)
|
15,613 | 14,053 | 13,285 | 13,422 | 13,413 | |||||||||||||||
|
Shares outstanding
|
188,446.1 | 188,446.1 | 188,446.1 | 188,446.1 | 188,446.1 | |||||||||||||||
|
ADRs (1 ADR = 400 shares)5
|
471.1 | 471.1 | 471.1 | 471.1 | 471.1 | |||||||||||||||
|
Other Data
|
||||||||||||||||||||
|
Quarterly inflation rate6
|
1.07 | % | 0.42 | % | -0.16 | % | 1.11 | % | 0.13 | % | ||||||||||
|
Central Bank monetary policy reference rate (nomina
|
5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||||
|
Avg. 10 year Central Bank yield (real)
|
2.45 | % | 2.49 | % | 2.42 | % | 2.45 | % | 2.62 | % | ||||||||||
|
Avg. 10 year Central Bank yield (nominal)
|
5.40 | % | 5.58 | % | 5.31 | % | 5.48 | % | 5.62 | % | ||||||||||
|
Observed Exchange rate (Ch$/US$) (period-end)
|
489.76 | 509.73 | 470.48 | 478.6 | 472.54 | |||||||||||||||
|
1
|
Ratio = Loans - marketable securities / Time deposits + demand deposits
|
|
2
|
Capital + future interest of all loans w ith one installment 90 days or more overdue.
|
|
3
|
Total installments plus lines of credit more than 90 days overdue
|
|
4
|
Based on internal credit models and SBIF guidelines. Banks must have a 100% coverage of risk index
|
|
5
|
The rato of ADRs per local shares w as modified in Oct. 2012
|
|
6
|
Calculated using the variation of the Unidad de Fomento (UF) in the period
|
Investor Relations Department
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl
22
|
Consolidated Financial Statements
|
|
CONSOLIDATED INTERMEDIATE STATEMENTS OF FINANCIAL POSITION
|
3
|
|
|
CONSOLIDATED INTERMEDIATE STATEMENTS OF INCOME
|
4
|
|
|
CONSOLIDATED INTERMEDIATE STATEMENTS OF COMPREHENSIVE INCOME
|
5
|
|
|
CONSOLIDATED INTERMEDIATE STATEMENTS OF CHANGES IN EQUITY
|
6
|
|
|
CONSOLIDATED INTERMEDIATE STATEMENTS OF CASH FLOW
|
7
|
|
|
Notes to the Consolidated Financial Statements
|
||
|
NOTE 01 SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
|
9
|
|
|
NOTE 02 ACCOUNTING CHANGES
|
39
|
|
|
NOTE 03 SIGNIFICANT EVENTS
|
42
|
|
|
NOTE 04 BUSINESS SEGMENTS
|
43
|
|
|
NOTE 05 CASH AND CASH EQUIVALENTS
|
47
|
|
|
NOTE 06 TRADING INVESTMENTS
|
48
|
|
|
NOTE 07 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
|
49
|
|
|
NOTE 08 INTERBANK LOANS
|
56
|
|
|
NOTE 09 LOANS AND ACCOUNTS RECEIVABLE FROM CUSTOMERS
|
57
|
|
|
NOTE 10 PURCHASES AND SALES OF LOANS
|
64
|
|
|
NOTE 11 TRADING INVESTMENTS
|
65
|
|
|
NOTE 12 INTANGIBLE ASSETS
|
66
|
|
|
NOTE 13 PROPERTY, PLANT, AND EQUIPMENT
|
68
|
|
|
NOTE 14 CURRENT AND DEFERRED TAXES
|
72
|
|
|
NOTE 15 OTHER ASSETS
|
75
|
|
|
NOTE 16 TIME DEPOSITS AND OTHER TIME LIABILITIES:
|
76
|
|
|
NOTE 17 ISSUED DEBT INSTRUMENTS AND OTHER FINANCIAL LIABILITIES
|
77
|
|
|
NOTE 18 MATURITY OF ASSETS AND LIABILITIES
|
83
|
|
|
NOTE 19 OTHER LIABILITIES
|
85
|
|
|
NOTE 20 COMMITMENTS AND CONTINGENCIES
|
86
|
|
|
NOTE 21 EQUITY
|
88
|
|
|
NOTE 22 CAPITAL REQUIREMENTS (BASEL)
|
91
|
|
|
NOTE 23 NON-CONTROLLING INTEREST
|
93
|
|
|
NOTE 24 INTEREST AND ADJUSTMENTS
|
95
|
|
|
NOTE 25 FEES AND COMMISSIONS
|
97
|
|
|
NOTE 26 OTHER INCOME FROM FINANCIAL OPERATIONS
|
98
|
|
|
NOTE 27 NET FOREIGN EXCHANGE INCOME
|
98
|
|
|
NOTE 28 PROVISION FOR LOAN LOSSES
|
99
|
|
|
NOTE 29 PERSONNEL SALARIES AND EXPENSES
|
100
|
|
|
NOTE 30 ADMINISTRATIVE EXPENSES
|
101
|
|
|
NOTE 31 DEPRECIATION, AMORTIZATION AND IMPAIRMENT
|
102
|
|
|
NOTE 32 OTHER OPERATING INCOME AND EXPENSES
|
103
|
|
|
NOTE 33 TRANSACTIONS WITH RELATED PARTIES
|
105
|
|
|
NOTE 34 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
|
109
|
|
|
NOTE 35 SUBSEQUENT EVENTS
|
113
|
|
2
Banco Santander Chile and Subsidiaries
CONSOLIDATED INTERMEDIATE STATEMENTS OF FINANCIAL POSITION
For periods ending as of
|
As of
March,
|
As of
December,
|
||||||
|
2013
|
2012
|
||||||
|
NOTE
|
MCh$
|
MCh$
|
|||||
|
ASSETS
|
|||||||
|
Cash and deposits in banks
|
5
|
1,230,201
|
1,250,414
|
||||
|
Cash items in process of collection
|
5
|
621,562
|
520,267
|
||||
|
Trading investments
|
6
|
250,040
|
338,287
|
||||
|
Investments under resale agreements
|
-
|
6,993
|
|||||
|
Financial derivative contracts
|
7
|
1,292,953
|
1,293,212
|
||||
|
Interbank loans, net
|
8
|
139,965
|
90,527
|
||||
|
Loans and accounts receivable from customers, net
|
9
|
18,542,851
|
18,325,957
|
||||
|
Available for sale investments
|
11
|
1,873,478
|
1,826,158
|
||||
|
Held to maturity investments
|
-
|
-
|
|||||
|
Investments in other companies
|
8,080
|
7,614
|
|||||
|
Intangible assets
|
12
|
77,158
|
87,347
|
||||
|
Property, plant, and equipment
|
13
|
159,852
|
162,214
|
||||
|
Current taxes
|
14
|
19,782
|
10,227
|
||||
|
Deferred taxes
|
14
|
187,991
|
186,407
|
||||
|
Other assets
|
15
|
585,528
|
655,217
|
||||
|
TOTAL ASSETS
|
24,989,441
|
24,760,841
|
|||||
|
LIABILITIES
|
|||||||
|
Deposits and other demand liabilities
|
16
|
4,964,239
|
4.970.019
|
||||
|
Cash items in process of being cleared
|
5
|
461,175
|
284.953
|
||||
|
Obligations under repurchase agreements
|
223,702
|
304.117
|
|||||
|
Time deposits and other time liabilities
|
16
|
9,151,110
|
9.112.213
|
||||
|
Financial derivative contracts
|
7
|
1,183,865
|
1.146.161
|
||||
|
Interbank borrowings
|
1,379,829
|
1.438.003
|
|||||
|
Issued debt instruments
|
17
|
4,599,823
|
4.571.289
|
||||
|
Other financial liabilities
|
17
|
210,210
|
192.611
|
||||
|
Current taxes
|
14
|
561
|
525
|
||||
|
Deferred taxes
|
14
|
14,780
|
9.544
|
||||
|
Allowances
|
229,784
|
221.089
|
|||||
|
Other liabilities
|
19
|
341,508
|
341.274
|
||||
|
TOTAL LIABILITIES
|
22,760,586
|
22,591,798
|
|||||
|
EQUITY
|
|||||||
|
Attributable to the Bank's shareholders:
|
2,194,025
|
2,134,778
|
|||||
|
Capital
|
891,303
|
891,303
|
|||||
|
Reserves
|
975,460
|
975,460
|
|||||
|
Valuation adjustments
|
21
|
(1,152)
|
(3,781)
|
||||
|
Retained earnings
|
328,414
|
271,796
|
|||||
|
Retained earnings of prior years
|
388,282
|
-
|
|||||
|
Income for the period
|
80,879
|
388.282
|
|||||
|
Minus: Provision for mandatory dividends
|
(140,747)
|
) |
(116.486)
|
||||
|
Non-controlling interest
|
23
|
34,830
|
34,265
|
||||
|
TOTAL EQUITY
|
2,228,855
|
2,169,043
|
|||||
|
TOTAL LIABILITIES AND EQUITY
|
24,989,441
|
24,760,841
|
|||||
Financial Statements 2013 / Banco Santander Chile 3
Banco Santander Chile and Subsidiaries
CONSOLIDATED INTERMEDIATE STATEMENTS OF INCOME FOR THE PERIOD
For periods ending as of
|
March 31,
|
||||||
|
2013
|
2012
|
|||||
|
NOTE
|
MCh$
|
MCh$
|
||||
|
OPERATING INCOME
|
||||||
|
Interest income
|
24
|
425,797
|
502,833
|
|||
|
Interest expense
|
24
|
(179,316)
|
(236,761)
|
|||
|
Net interest income
|
246,481
|
266,072
|
||||
|
Fee and commission income
|
25
|
87,528
|
90,935
|
|||
|
Fee and commission expense
|
25
|
(23,274)
|
(22,244)
|
|||