Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Q2 2024 Earnings Presentation
34 slides from Banco Santander-chile's earnings presentation, Aug 2, 2024
Slide 1: Banco Santander Chile
Banco Santander Chile August 2, 2024
Slide 2: Important information
Important information Banco Santander Chile caution that this presentation contains forwar kin within 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, sta
Slide 3: Agenda: Macro Update
2| Chile First: Strategy 2023-2026 3| Balance sheet and results 4| Conclusions 5| Annexes
Slide 4: Macro indicators and forecasts
11.3 13.3 2.1 2.5 2.4 0.6 0.2 6.6 4.8 4.0 3.4 2.7 2.7 -6.1 2019 2020 2021 2022 2023 2024 (f) 2025 (f) 2019 2020 2021 2022 2023 2024 (f) 2025 (f) 11.25 852 851 879 890 880 752 710 8.25 5.25 4.0 4.50 1.75 0.5 2019 2020 2021 2022 2023 2024 (f) 2025 (f) 2019 2020 2021 2022 2023 2024 (f) 2025 (f) 4
Slide 5: Macro environment
Macro environment Update on proposed regulations . A Tax Compliance Bill is being discussed in Congress with the aim of collecting 1.5% of GDP. Fiscal pact Atechnical task force in the Senate is discussing a new proposal. Critical issues include an Pension reform additional 6% contribution, the auct
Slide 6: Chile First: Strategy 2023-2026
1| Macro Update 3| Balance sheet and results 4| Conclusions 5| Annexes
Slide 7: Chile First
Chile First HOW we want to deliver Sustained generation An organization that is of new business agile, collaborative and opportunities... high performance... .. encouraging ...the best place to competition, looking work in Chile, for growth and leading attracting, developing the market in and retain
Slide 8: Chile First: A Digital Bank with Work/Cafés
Chile First A Digital Bank with Work/Cafés + Digital products for the non-bankerized populations that seek to part of the bank, receiving merits for the positive financial behaviours (through loans and savings). + The first 100% digital sight and savings accounts for the mass market. Launched in Mar
Slide 9: Digital initiatives and Work/Café boost productivity indicators
- o Chile First Digital initiatives and Work/Café boost productivity indicators * NEW 4Q / 1 s Hy Work Café <P wo =U Work Café <P q q wa I R= Work Cafe —P = ale 9 Expresso StartUp eee | a Inversiones + NE Ss + Consolidating cash services into the Work/Café Expresso. + Abranch dedicated to the StartU
Slide 10: Specialization and added value for companies
Chile First ® Specialization and added value for companies C NUMBER OF BUSINESS CURRENT ACCOUNTS D) + 2 9 of J ==, (Thousands) (0) Apri-24; 401 . oe YoY Business e H Current accounts ] e Dec-22;279 + For small and medium sized companies that want 5} / % a current account for their business. Market s
Slide 11: New business opportunities
Chile First o New business opportunities + Our Mas Lucas account for 12-17 yr olds + 100% digital sight account with a debit + Our online car insurance brokerage platform, now available for clients and non-clients card + Allows individuals to compare + Free of charge, with monthly interest between —
Slide 12: Leading our peers in NPS for the last years
Chile First Leading our peers in NPS for the last 4 years BENCHMARK NET PROMOTER SCORE (NPS)" NET SATISFACTION (NS)' 75 points Application (App) 74 points Website 73 points Contact Center ®- Santander —@Peer1 —@Peer2 —@Peers* Dec-20Mar-21 Jun-21 Sep-21 Dec-21Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Slide 13: Highly recognized as leaders in our industry in Chile
Chile First Highly recognized as leaders in our industry in Chile Recognitions Sustainable ratings and indexes # 1 7 Among Chilean A p banks EUROMONEY: Best Bank in the country in se « «SMEs 4 Dow lanes Including Chile, MILA, and Emerging Markets + ESG Sustainability Indexes £56 cumare MSCI r+) ALAS
Slide 14: Balance sheet and results
1| Macro Update 2| Chile First: Strategy 2023-2026 4| Conclusions 5| Annexes
Slide 15: Profitability and ROAE rebounding in 2Q24
Balance sheet and results Profitability and ROAE rebounding in 2Q24, YTD ROAE well within guidance Quarterly ROAE YTD ROAE % % 20.7% 285 bp 15.8% 12.9% 2Q23. 3023) 4Q23) «1024 =. 2Q24 6M23 6M24 Q A F . Ch$ million Ch$ million GED (D- 337,976 217,724 262,870 176,918 127,187 120,251 2Q23 3023) «= 4Q23
Slide 16: Retail loans continue to grow while commercial loans contract
Balance sheet and results Retail loans continue to grow steadily while commercial loans contract in the quarter Total loans Total loans by product Ch$bn Ch$ billion 624 YoY Q0Q ‘ ED Consumer 5,702 5.4% 1.2% Auto loans! 978 10,0% 7.2% 39,362 40,139 40,812, 4253 40,527 Credit cards 1,797 12.6% 0.9% Mo
Slide 17: Time deposits decrease 5.0% in the quarter
Balance sheet and results Time deposits decrease 5.0% in the quarter as rates become less attractive Total deposits Ch$bn Ch$ billion 6M24 YoY Q0Q : CD Demand deposits 13,231 (0.3%) (2.1%) Baia Time deposits 16,067 7.9% (5.0%) 28,164 28,555 29,676 J 29,298 Total deposits 29,298 4.0% (3.7%) Mutual fu
Slide 18: NIM of 3.6% in 2Q24 and 3.1% YTD
Balance sheet and results NIM of 3.6% in 2Q24 and 3.1% YTD, as cost of Funds falls and FCIC fades away NIM! & Inflation Net interest income Ch$ billion 6M24 YoY QoQ Net interest income 675 125.0% 17.1% Net readjustment income 146 (36.9%) 81.8% ees interestand —g9 54.5% 26.4% -1.9% _ Avg. Int. earnin
Slide 19: Asset quality: increasing NPLs in line with economic cycle
Balance sheet and results Asset quality levels: increasing NPLs in line with this part of the economic cycle. Total loans - NPL(1) -e Impaired (2) =* Coverage ratio (3) 226.7% 270.0% 185.3% 135.0% : 157.3% 137.9% 5.9% 52% 5.6% 6.2% ea TE a Oe vaee! 2.1% 2.3% 27% 1.4% 12% 78% no ee enn Dec/19 Jun/20
Slide 20: Cost of Credit at 1.25% YTD
Balance sheet and results Cost of Credit at 1.25% YTD Cost of risk! Provisions % Ch$ billion 6M24 YoY 0 ie" 1.25% $ 0a Gross provisions and write-offs (327.9) 18.3% 4.5% Recoveries 70.9 52.1% 28.9% Provisions (257.3) 11.1% (1.0%) Cost of risk(YTD) 1.25% 6M23 6M24 * All mortgage loans and 57% of comm
Slide 21: Digital platforms drive client growth and fees
Balance sheet and results Digital platforms drive client growth and fees in the quarter Fees and Financial Transactions Ch$bn 2023 3023 4023 1024 Fees § Financial Transactions New interchange fee regulation started in October 2023. Estimated negative gross impact in 2024 is Ch$ 25bn and in 2025 Ch$4
Slide 22: Efficiency recovering to levels below 40%
Balance sheet and results Efficiency recovering to levels below 40% on the quarter as profitability increases Ch$ billion 6M24 YoY QoQ Ch$bn Personnel expenses 193.2 (8.5%) 12.3% Administrative expenses 185.0 23.8% 0.5% 238 Investment amortization 71.2 0.3% (3.8%) Total Core expenses 449.4 4.2% 4.7%
Slide 23: Solid capital levels with a BIS ratio at 17.4%
Balance sheet and results Solid capital levels with a BIS ratio at 17.4% Core capital & BIS ratio rren -i 17.5% 17.4% Dec-22 Dec-23 May-24 Dec-24 Dec-25 12.5% Minimum from Banking Law 4.5% 4.5% 4.5% 4.5% 45% Including ATI D-SIB 0.38% 0.75% 0.75% 1.13% 1.5% and Tier 2 ~~ i - Minimum CET1 4.88% 5.25%
Slide 24: Conclusions
1| Macro Update 2| Chile First: Strategy 2023-2026 3| Balance sheet and results 5| Annexes
Slide 25: Conclusions: 2024 Guidance Update
Conclusions 2024 Guidance Update H1 2024 2024 Targets Updated 2024 Targets Mid Single digit Mid Single Digit Loan Growth 3.8% L12M! growth growth NIM 3.1% ~3.2% 3.3% - 3.5% Mid Single Digit Mid Single Digit Fees 7.6% L12M2 growth growth Efficiency / Total expenses: Core expenses in Efficiency: High
Slide 26: Santander
«> Santander
Slide 27: Solid balance structure and liquidity levels
Balance sheet and results Solid balance structure and liquidity levels Structural balance sheet US$bn, Jun 2024 Demand Deposits 14.0 Commercial Loans 17.7 Term Deposits Mortgages 18.4 [rea | u Bonds 11.7 Assets USD 55 bn Liabilities Balance Sheet sensitivities Inflation: + Approx 58% of loans are li
Slide 28: A diversified and universal bank
Balance sheet and results A diversified and universal bank 100% Interbankstoans,0.0% 90% Consumer, 14.1% 80% 70% Eo Mo} 2% 50% 40% 30% 20% Col 8% 10% 0% Total loans Total commercial loans 1m Social services and other community services ; 30.9% Commerce ; 18.2% Real estate services ; 14.4% Agricultur
Slide 29: Annexes
1| Macro Update 2| Chile First: Strategy 2023-2026 3| Balance sheet and results 4| Conclusions
Slide 30: Annexes - Unaudited financial information: Assets
Annexes- (Unaudited financialinformation) Jun-24 Dec-23 Jun-24/Dec-23 Assets Ch$ Million % Chg. Cash and deposits in banks 2.038.249 2.723.282 (25,2%) Cash items in process of collection 693,606 812.524 (14,6%) Financial assets for trading at fair value through earnings TUAEECED Wen! Tasks Financial
Slide 31: Annexes - Unaudited financial information: Liabilities
Annexes- (Unaudited financialinformation) LIABILITIES Cash items in process of being cleared Financial liabilities for trading at fair value through earnings Financial derivative contracts Financial derivative contracts for hedge accounting Financial liabilities at amortized cost Deposits and ather
Slide 32: Annexes - Unaudited financial information: Income statement
Annexes-(Unaudited financial information) Interest income Interest expenses Net interest income Readjustment income Readjustment expenses Net income from readjust ments ‘Net income from interest and readjustments Fee and commission income Fee and commission expenses ‘Net fee and commission income Fi
Slide 33: Annexes - Unaudited financial information: Income statement
Annexes —(Unaudited financial information) Readjustment expenses Net income from readjust ments Net income from interest and readjustments Fee and commission income Fee and commission expenses Net fee and commission income Financial assets not for trading Result from derecognition of financial asset
Slide 34: Annexes - Profitability, asset quality and capital indicators
Annexes- (Unaudited financialinformation) Profitability and efficiency Jun-24 Jun-23 Variation bp Net interest margin (NIM) ' 3.1% 2.1% 100 Recurrence 51.8% 60.6% (874) Efficiency ratio™ 42.1% 45.4% (328) Return on avg. equity* 15.8% 12.9% 295 Return on avg. assets” 0.9% 0.8% 18 Return on RWA® 17% 1
Banco Santander Chile — Q2 2024 Earnings Presentation on 6ix