Banco Santander

Chile

Update

March 2020

Important information

Banco Santander Chile caution that this presentation contains forward looking statementswithin the meaning of the US Private Securities Litigation Reform Act of 1995. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macro-economic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America, could adversely affect our business and financial performance.

Note: the information contained in this presentation is not audited and is presented in Chilean Bank GAAP which is similar to IFRS, but there are some differences. Please refer to our 2019 20-F filed with the SEC for an explanation of the differences between Chilean Bank GAAP and IFRS. Nevertheless, the consolidated accounts are prepared on the basis of generally accepted accounting principles. All figures presented are in nominal terms. Historical figures are not adjusted by inflation. Please note that this information is provided for comparative purposes only and that this restatement may undergo further changes during the year and, therefore, historical figures, including financial ratios, presented in this report may not be entirely comparable to future figures presented by the Bank.

2 2

AGENDA

CHILE AN UPDATE

SAN CHILE: BALANCE SHEET

SAN CHILE: BUSINESS GROWTH AND RESULTS

3 3

Update

Despite increase in contagions, Chile has managed to slowdown its

progression

Coronavirus daily cases

(Thousands)

500

Argentina

450

Brazil

400

Chile

350

300

Ecuador

250

Peru

200

Spain

150

United

100

Kingdom

50

United States

of America

0

-5-3-1 1

3 5 7 9 11 13 15 17 19 21 23 25 27 29

(0= first day with 40 or more total cases)

Chile: accumulated cases

(Thousands)

4000

3500

Exponetial projection

CAt= 1.18e0.35t

3000

2500

2000

1500

1000

500

Effective cases

0

3-11

3-16

3-10

3-12

3-13

3-14

3-15

3-17

3-18

3-19

3-20

3-213-223-233-243-25

4 4

Source: ECDC, Ministry of Health and Santander

Update

Mortality has been low in Chile

Deaths on reaching 900 contagions

(as of March 24th)

Irán

66

China

41

EEUU

38

Japón

36

España

30

Italia

29

Reino Unido

21

Francia

19

Brasil

18

Ecuador

16

Corea del Sur

12

Suiza

11

Chile

2

Alemania

0

0

20

40

60

80

Number of deaths

50

45

40

Argentina

35

Brazil

30

Chile

25

Ecuador

20

Peru

15

Spain

10

United

5

Kingdom

United States

0

of America

-5-2 1 4

7 10 13 16 19 22 25 28

(0= first day with 40 or more total cases)

5 5

Source: Worldmeter / The coronavirus app and ECDC

Update

Oil price fall favors the terms of exchange

Commodity prices

Terms of Trade

400

Copper (US$/lb)

120

115

350

100

110

300

250

80

105

200

60

100

150

40

95

100

50

Oil WTI (US$/bbl)

20

90

0

0

85

(Average 2012-2019=100)

6 6

Source: CBC and Santander

Update

There is a moderate impact in March's activity

Electric generation

(GWh adjusted by weekends and holidays)

220

210

Oct 18th

200

190

March 23rd

180

170

160

Aug-19

Oct-19

Dec-19

Jan-20

7 7

Source: Electric Coordinator and Santander

Update

Chilean assets have lost less value than other countries

Stock market indices

Currencies

(Feb 20 = 100)

(Feb 20 = 100)

120

140

110

130

100

90

120

80

110

70

60

100

50

90

Jan-20

Feb-20

Mar-20

Jan-20

Feb-20

Mar-20

Chile

Brazil

Mexico

Colombia

Peru

Chile

Brazil

Mexico

Colombia

Peru

8 8

Source: Bloomberg and Santander

Update

Long-term rates remain relatively low

Nominal long-term interest rates

5yrs CDS

(%)

(Basis points)

10

420

8

320

6

220

4

120

2

20

Jan-20

Feb-20

Mar-20

Jan-20

Feb-20

Mar-20

Peru

Mexico

Colombia

Chile

Brazil

Chile

Peru

Brazil

Colombia

Mexico

9 9

Source: Bloomberg and Santander

Update

Central Bank cut its MPR to 1% and announced additional measures

Monetary Policy Rate (TPM)

(%)

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Mar-18

Jun-19

Sep-20

Dec-21

TPM Fwd-NS Santander Fwd

Additional measures

  • New liquidity facility FCIC
  • Corporate bonds accepted as collateral
  • Purchase of banks bonds
  • Exchange rate intervention program extended up to January 2021

10 10

Source: Bloomberg, CBC and Santander

Fiscal announcements (US$11.8 billion)

  • Expenditure increase:
    • Health's budget increased by US$1.5 billion (2% PIB)
    • Allowance per family (US$ 230) for those without formal jobs
    • Solidarity fund (US$100 million) for social emergencies
  • Tax cuts
    • Transitory reduction of the stamp tax
  • Liquidity measures
    • Corporate tax provision delayed 3 months
    • VTA and local taxes delayed 3 months
  • Job protection
    • Bill to allow for the continuation of labor relations (salaries paid for by the unemployment insurance system)
  • Capitalization of Banco Estado for US$500 million

11 11

Source: Min Hacienda and Santander

CMF announcements

  • For the bank
    • CMF has suggested the implementation of Basel III could be postponed
    • Extension of the term that banks have for the alienation of Goods Received in Payment
    • Modification to the treatment of derivatives (capital charge reduction)
  • For mortgage loanbook
    • Possibility of deferring up to 3 installments in the payment of mortgage loans
  • For SMEs and individuals
    • Facilities for banks to make loan installments more flexible to SME and individuals up to 6 months, without this being considered a renegotiation
    • Possibility of using mortgage guarantee surpluses to guarantee loans to SMEs

12 12

Source: CMF and Santander

AGENDA

CHILE AN UPDATE

SAN CHILE: BALANCE SHEET

SAN CHILE: BUSINESS GROWTH AND RESULTS

13 13

Balance sheet

A universal and diversified bank

% of total loans

% of total contribution

70%

0.1%

37%

13%

Retail

Middle Market

Corporate Investment

Corporate Activities

Banking (SCIB)

  • Loans: 58% Individuals / 42% Companies
  • High diversity by sector. All loans in Chile
  • Individuals: focus on growing the middle income, selective growth in lower income
  • SMEs: focus on larger SMEs, especially those with balanced income flow (range of products)
  • Middel market: Focus on non-credit activities, loans are part of an integrated relationship
  • SCIB: Strong focus on non-credit activities

Mining

Fishing

1%

1%

Forestry

Utilities

1%

1%

Transportation 2%

Construction 3%

Manufacturing 4%

Mortgages

Agro 4%

34%

Services 9%

Consumer Other

Commerce 10%

17%

12%

14

14

Balance sheet

Solid balance structure and liquidity levels

Structural balance sheet

Liquidity coverage ratio3

US$bn Feb. 2019

Maturity

168%

143%

128%

102%

102%

109%

125%

Average

14.3

Demand

deposits

60%

Regulatory

Commercial

2 yrs

minimum

27.0

& Consumer

21 mths 1

Lending

Time

17.1

deposits

NSFR4

Mortgage

109.5%

108.0%

5 yrs

4 yrs

2

Bonds

105.5%

lending

14.1

12.4

Assets

Liabilities

Dec-18

Dec-19

Feb19

15

15

  1. Assumes an actual duration for demand deposits of four years. 2. Includes pre-payment estimate. 3. LCR calculated following the new local Chilean models
  1. Internal methodology and not the local Chilean regulator's guidelines still under discussion

Balance sheet

Maintaining solid liquidity levels

LCR1

230.0%217.0%

210.0%

183.0%

Under Chilean guidelines

190.0%

163.1%

170.0%

150.0%

130.0%

110.0%

90.0%

70.0%

50.0%

148.9%

110.8%

NSFR2

1.14

112.7%

1.12

110.6%

1.1

1.08

105.5%

1.06

1.04

102.0%

1.02

102.9%

1

0.98

0.96

Jan-15

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

16 16

1. Liquidity coverage ratio. Jan-15 to Dec-17 under internal models. According to local Chilean regulations from Jan-18. ". Net Stable Funding Ratio according to internal models.

Balance sheet

Positive evolution of funding mix

Total Deposits

Ch$ bn

2M20

YoY

Ch$bn

Demand deposits

10,499

24.4%

+7.7%

Time deposits

14,007

8.3%

+4.3%

Total Deposits

24,506

14.7%

21,809 21,462 22,032 22,868 23,490 24,506

Mutual funds1

7,105

21.1%

Loans/Deposits2 92.5%

Dec-18Mar-19Jun-19Sep-19Dec-19Feb-20

Demand deposits by segment

CLP Time Deposit Cost Evolution3

3.13%

Ch$ bn

12M19

YoY

QoQ

2.86%

2.61%

2.75%

Individuals

3,650

8.5%

0.5%

2.40%

2.50%

2.29%

SMEs

1,698

15.3%

0.5%

1.75%

Retail

5,348

10.7%

0.5%

Middle Market

2,991

14.4%

2.7%

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Apr-19

Jun-19

Aug-19

Oct-19

Dec-19

Corporate (SCIB)

1,959

55.0%

13.0%

Santander

Chile

BCI

Central Bank Rate

Total6

10,297

17.8%

8.8%

17 17

1. Banco Santander Chile is the exclusive broker of mutual funds managed by Santander Asset Management, a subsidiary of SAM Investment Holdings Limited. 2. (Net Loans - portion of mortgages funded with long-term bonds) / (Time deposits + demand deposits). 3. Source: CMF. Quarterly Calculation is based on time deposit in CLP average and interest paid on time deposits in pesos. August rate considers the last 3 months 6. Includes non-segmented deposits

Balance sheet

Evolution of demand deposits versus Banco de Chile

Deposits and other demand deposits

Ch$bn

10,607 10,499

10,297

9,584

8,741

Banco de Chile

Santander

18 18

Balance sheet

Loan growth driven by Retail banking

Total Loans

12M19

YoY

QoQ

Ch$ bn

Ch$bn

+8.1%

Individuals1

18.834

11,3%

5,1%

+3.2%

Consumer

5.539

13,6%

9,4%

30,282 30,600 31,095 31,905 32,732

33,788

Mortgages

11.263

11,0%

3,3%

SMEs

4.085

5,7%

1,1%

Retail

22.919

10,3%

4,3%

Middle Market

8.093

5,2%

1,1%

Corporate (SCIB)

1.672

(0,6%)

(5,9%)

Total2

32.732

8,1%

2,6%

Dec-18Mar-19Jun-19Sep-19Dec-19Feb-20

19 19

1. Includes other commercial loans to individuals. 2. Includes other non-segmented loans and interbank loans

Balance sheet

Stable asset quality throughout the years

Total loans: NPLs, coverage and cost of risk

118%

Economic Crisis

US and Europe

71%

2.7%

2.8%

2.4%

2.4%

Feb 2010 Earthquake in

Maule Chile- 8.8Mw

and destructive Tsunami

148%

2014: Changes to

provisioning

models: Consumer

2016: Standard

and Commercial

provisioning model

87%

for mortgages (B1).

Higher provisioning

for LTV > 90%

3.1%

Sept 2015:Earthquake in

Coquimbo, Chile - 8.3Mw

2.6%

2.4%

2.2%

Caso La Polar

Borronazo DICOM

146%

July 2019: Standard provisioning model for SMEs (B1)

1.9%

1.8%

Oct. 2019: Start of

1.4%

social unrest

Jan-20

Oct-19

Jul-19

Apr-19

Jan-19

Oct-18

Jul-18

Apr-18

Jan-18

Oct-17

Jul-17

Apr-17

Jan-17

Oct-16

Jul-16

Apr-16

Jan-16

Oct-15

Jul-15

Apr-15

Jan-15

Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

Jan-12

Oct-11

Jul-11

Apr-11

Jan-11

Oct-10

Jul-10

Apr-10

Jan-10

Oct-09

Jul-09

Apr-09

Jan-09

NPL (1)

Cost of Risk (3)

Coverage (2)

20

20

1. Loans with 90 days or more overdue. 2. Stock of provisions divided by NPLs.. 3. Quarterly cost of risk = quarterly provision expense/ quarterly average loans.

Balance sheet

Deterioration of asset quality in periods of stress improving

Total loans

% of loans

124%

146%

138% 149%

72%

2.8%

3.0%

2.2%

1.8%

2.5%

2.6%

2.4%

1.8%

Mar-09

Dec-09

Sep-10Jun-11

Mar-12Dec-12

Sep-13

Jun-14

Mar-15

Dec-15

Sep-16

Jun-17

Mar-18

Dec-18Sep-19

Feb-20

NPL(1)

Cost of risk (2)

Coverage ratio (3)

Consumer loans

% of loans

279%

319%

323% 363%

121%

13.1%

11.1%

6.6%

6.0%

5.3%

3.4%

2.0%

1.6%

Mar-09

Dec-09

Sep-10Jun-11

Mar-12Dec-12

Sep-13

Jun-14

Mar-15

Dec-15

Sep-16

Jun-17

Mar-18

Dec-18Sep-19

Feb-20

NPL(1)

Cost of risk (2)

Coverage ratio (3)

Commercial loans

% of loans

145%

136%

111%

116%

74%

2.3%

2.4% 2.3%

2.2%

2.6%

73%

2.8%

1.8%

1.2%

1.2%

0.6%

Mar-09

Dec-09

Sep-10Jun-11

Mar-12

Dec-12Sep-13Jun-14Mar-15Dec-15

Sep-16

Jun-17

Mar-18

Dec-18

Sep-19

Feb-20

NPL(1)

Cost of risk (2)

Coverage ratio (3)

Mortgage loans

% of loans

43%

50%

48%

14%

14%

2.9%

2.7%

1.2%

1.7%

1.2%

0.4%

0.5%

0.4%

Mar-09

Dec-09

Sep-10

Jun-11

Mar-12

Dec-12

Sep-13

Jun-14

Mar-15

Dec-15

Sep-16

Jun-17

Mar-18

Dec-18

Sep-19

Feb-20

NPL(1)

Cost of risk (2)

Coverage ratio (3)

21 21

1. 90 days or more NPLs. 2. Quarterly cost of risk = quarterly provision expense/ quarterly average loans. 3. Loan loss reserves over NPLs, includes additional consumer provisions of Ch$ 20 billion in 3Q18 and provisions due to new provisioning model for commercial loans analyzed on a group basis for Ch$ 31 billion in 3Q19 and additional provisions of Ch$ 16 billion in 4Q19 for the consumer loan book

Balance sheet

A better client mix through derisking

Composition of loans to individuals

72.0%

74.8%

69.2%

66.4%

64.2%

61.2%

59.4%

55.1%

37.3%

33.6%

32.5%

30.6%

29.3%

27.8%

26.2%

24.0%

7.6%

7.1%

6.5%

5.4%

4.3%

3.1%

1.9%

1.3%

Dec-12Jun-13

Dec-13Jun-14

Dec-14Jun-15

Dec-15Jun-16Dec-16Jun-17

Dec-17Jun-18Dec-18Jun-19Dec-19

High income

Middle income

Mass income

22 22

Balance sheet

Consistently improving our asset quality

Consumer NPLs1

% of loans; base = 100 as of Dec. 2015

200

150

100

Santander Chile BCI

171

141

56

50

Dec-15

Jun-16

Dec-16

Jun-17

Dec-17

Jun-18

Dec-18

Jun-19

Dec-19

Consumer Impaired loans 2

% of loans; base = 100 as of Dec. 2015

150

130

110

90

70

110

90

50

63

Dec-15

Dec-16

Dec-17

Dec-18

Dec-19

23 23

1. 90 days or more NPLs. 2.Impaired NPLs + restructured loans. 3. Provisions/NPLs Source: CMF

Balance sheet

Sustainable capital ratios

Core capital

BIS Ratio

10.9% 10.3% 10.5% 11.0% 10.6% 10.1%

14.0% 13.2% 13.4% 13.9% 13.4% 12.9%

Dec-14Dec-15Dec-16Dec-17Dec-18Dec-19

Dec-14Dec-15Dec-16Dec-17Dec-18Dec-19

We recently decided to adjust our payout this year to 30% from 60% originally. This in order to maintain our internal limit of reaching a core capital ratio above 10%.

24 24

AGENDA

CHILE AN UPDATE

SAN CHILE: BALANCE SHEET

SAN CHILE: BUSINESS GROWTH AND RESULTS

25 25

Business growth and results

Clients: moving forward in our innovations

Challenge

Offer transactional products with access to digital economy

Increase SME access to banks

and to digital economy

Enter the car loan market, creating synergies with other bank products, creating synergies with other bank products

Reactivate loan growth within

mass segment

Continue expanding cross- selling with our clients with better products

Offer differentiated and specialized service to gain loyalty

Approach

Acquiring

Wealth management

Progess

More than 18,000 clients. Launch during 1H20

Agreement with Evertec. First operation in Dec. 2019. Operations begin 1H20

Transaction complete. Acquired in November 2019 Adquirido en noviembre 2019

Over 136,800 new clients, including 58,000 through Life

Approval received for the first open digital platform to sell insurance. Launch during 1H20

New private banking model to be launched 1H20

We have announced an investment plan of US$380 million for the period of 2019-2021 in technology,

branch upgrading and new products and services.

26 26

Business growth and results

Clients: moving forward in our innovations

Business growth and results

Santander: Measures to confront coronavirus

US$6.000mm

Delay your installment

  • Product available since October 2019 after social unrest
  • Geared towards clients in default or up to 89 days late in their payments
  • List of eligible clients selected and approved by risk department
  • Enables to delay up to 6 installments
  • Installments are capitalized in new payment schedule
  • Insurance will cover the whoke life of the loan

Delay consumer installments

  • New product
  • For all clients that want to reprogram their debts
  • Can be taken out on the internet, with one click
  • Term of up to 60 months
  • 3 months grace period

Refinance digitally

  • Product available since 2019
  • Clients who are complicated or with delay in payments can refinance their consumer loans, card loans, or credit line
  • Client refinances all debt into one

One-on-one financial

assistance and refinancing

  • There is no one-size-fits-all solution for all SMEs
  • Personalized solution for each client

Business growth and results

Results as of February 2020

Ch$ mn

2M20

YoY

Net interest income

247,698

18.5%

NIM1

4.0%

+24bp

Fees

52,356

13.0%

Financial transactions

20,795

31.8%

Provisions

(61,288)

22.6%

Cost of credit2

1.1%

+12bp

Operational expenses

(123,008)

4.7%

Efficiency ratio3

38.7%

-479bp

Net income attributable to

106,896

39.1%

shareholders

ROE

18.9%

+480bp

29 29

1. Annualized Net interest income annualized divided by average interest earning assets. 2. Provision expense annualized divided by average interest earning assets 3. Efficiency ratio: Oper. Expense excluding other operating expenses / Net interest income + fee income + financial transactions, and Other operating income, net

Business growth and results

Strong growth in new clients

Quarterly new gross accounts1

84,447

87,623

74,617

42,312 40,703 47,128

Dec-18

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

During the 1Q20 we opened 115% more accounts than in 1Q19 despite the social conflict and coronavirus, reflecting the strength of our brand and digital channels

22%

Current account openings 12M192

Market share of

27.4%

New current accounts

Market share

current accounts2

100.0

90.0

95.0

25.00%

80.0

14.2%

13.1%

16.2%

20.00%

27%

70.0

11.0%

60.0

9.8%

15.00%

50.0

4.5%

56.1

40.0

49.4

10.00%

Market share of

30.0

45.6

38.3

5.00%

current account

20.0

34.1

10.0

15.7

0.00%

openings2

0.0

-5.00%

30

30

1. Include current accounts, Life and Superdigital. First quarter of 2020 is data from January and February 2020 quartered. 2. Market share with information published by the CMF

Business growth and results

Higher inflation and lower cost of funds drives recovery in NIMs

NIM1 & Inflation

5.0%

6.50%

4.5%

4.4%

4.4%

4.0%

4.2%

3.9%

5.50%

4.0%

3.5%

3.00%

4.0%

4.50%

3.0%

2.75%

2.50%

3.50%

2.5%

2.00% 1.75%

2.50%

2.0%

1.00%

1.50%

1.5%

1.2%

0.9%

0.50%

1.0%

0.8%

0.0%

0.5%

1.0%

0.5%

-0.50%

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

NIM (1)

MPR (2)

UF

Net interest income

Ch$ bn

2M20

YoY

Net interest income

247.7

18.5%

Average interest-earning assets

36,758

11.5%

Average loans

33,315

9.5%

Interest earning asset yield3

6.5%

+112bp

Cost of interest bearing liabilities4

2.5%

+84bp

NIM YTD

4.0%

+24bp

31 31

1. Annualized Net interest income divided by average interest earning assets. 2. MPR: Monetary Policy Rate. 3.Annualized gross interest income divided by average interest earning assets. 4. Annualized interest expense divided by sum of average interest bearing liabilities and demand deposits.

Business growth and results

Inflation picking up and yield curve increasing slope

Central Bank nominal 10-year notes, Monetary Policy Rate and UF Inflation1

%

Long-term rates fell faster than short-

Now the slope of long-term is

increasing while the MPR has

term rate, which promoted the

decreased. Inflation has also

5

refinancing of mortgages

increased

4.5

4.25

4.03

6.5%

3.89

4

3.42

3.5

5.5%

3.46

3

2.51

4.5%

2.5

2

1.5

1

0.5

3.00

2.50

3.7%

2.00

3.5%

1.75

2.9%

1.00

2.8%

2.5%

2.4%

2.2%

2.3%

0

1.5%

CHBCP10Y

MPR

12M UF Inflation

32

32

1. Source: Bloomberg

Business growth and results

Larger provisions for robust coverage

Cost of risk1

Provision for loan losses

%

1.9%

1.5%

Ch$ bn

2M20

YoY

1.7%

1.0%

Gross provisions and write-

1.0%

1.0%

(77,855)

22.4%

1.1%

offs

1.1%

Recoveries

16,567

21.9%

Provision for loan losses

(61,288)

22.6%

Cost of risk(YTD)1

1.10%

+12bp

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Cost of risk

Adjusted cost of risk2

33 33

1. Provision expense annualized divided by average interest earning assets. For 1Q20, months of January and February turned into quarter. 2. Adjusted cost of risk for the change in the provisioning model for SMEs for Ch$ 31 billion in 3Q19 and Ch$16 billion in additional provisions for consumer in 4Q19.

Business growth and results

Non-interest income: Client driven

Fees & financial transaction

Ch$bn

109.5

117.0

136.4

131.1

+18.9%

38.8

49.0

64.7

54.4

67.1

79.8

27.4

20.8

70.7

68.0

71.7

76.7

46.3

52.4

Net fee income

Financial trx

Fees

Ch$ mn

2M20

YoY

Checking accounts

5,856

(0.7%)

Lines of credit

1,106

5.3%

Credit, debit & ATM card fees

12,220

27.4%

Collection fees

7,356

34.7%

Asset management

7,931

10.4%

Guarantees, pledges and other

contingent operations

5,954

2.3%

Insurance brokerage

7,521

4.7%

Fees from brokerage and

custody of securities

2,128

49.1%

Other Fees

2,284

(15.4%)

Total

52,356

13.0%

Financial transactions, net

Ch$ mn

2M20

YoY

Client

26,436

17.0%

Non-Client

936

--%

Total

27,372

31.6%

34 34

Business growth and results

Investing to improve productivity and efficiency

Operational expenses

Ch$bn

500

46.0%

450

43.5%

42.5%

44.0%

400

42.0%

350

40.3%

39.3%

38.7%

40.0%

300

38.3%

250

38.0%

200

180

192

189

189

+4.7%

36.0%

150

117

123

34.0%

100

32.0%

50

0

30.0%

1Q19

2Q19

3Q19

4Q19

Jan-Feb

Jan-Feb

19

20

Ch$ bn

2M20

YoY

Personnel expenses

63.3

5.8%

Administrative

41.2

2.3%

expenses

Depreciation

18.5

6.4%

Operational expenses

123.0

4.7%

Efficiency ratio

38.7%

-480bp

Costs/assets

1.4%

-40bp

Expenses Efficiency

35 35

1. Gastos operativos excluye deterioro y otros gastos operativos 2. Ratio de eficiencia: Gastos operativos excluyendo deterioro/ Margen financiero + comisiones transacciones financieras, y otros ingresos operativos, netos

Conclusions

A difficult outlook but well positioned

  • The Central Bank and CMF have launched a series of initiatives that will help to maintain liquidity and capital levels. Measures are also coming to give people relief, which will help asset quality
  • The Bank has worked profoundly on its asset quality metrics in the last decade which can help to absorb the expected impacts to asset quality
  • Liquidity levels are sound and deposit growth has been high
  • Loan growth should decelerate with a focus on medium and larger corporates with renegotiation program for individuals and SMEs

Client growth has remained strong through digital channels

Capital ratios are healthy. Payout lowered to 30% proactively

Results as of February were strong. Higher inflation, lower rates, client growth and cost control should help to offset higher cost of credit in the rest of the year

36 36

Thank you.

Our purpose is to help people and business prosper.

Our culture is based on believing that everything we do should be:

Attachments

  • Original document
  • Permalink

Disclaimer

Banco Santander-Chile published this content on 26 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2020 18:02:06 UTC