Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Q3 2024 Earnings Presentation
31 slides from Banco Santander-chile's earnings presentation, Oct 30, 2024
Slide 1: Banco Santander Chile
Banco Santander Chile October 30, 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
2| Chile First: Strategy 2023-2026 3| Balance sheet and results 4| Conclusions 5| Annexes
Slide 4: Macro environment
Macro environment Macro view GDP growth Inflation Annual growth % UF inflation, annual variation, % 11.3% 13.3% 2.1% 2.4% 2.1-2.3% 0.6% 6.6% —— || WED ZZ aa 48% 41% . 3.4% | | 2.7% 2.7% a oa = | 2019 2020 2021 2022 2023 © 2024(f) + 2025(f) 2019 2020 2021 2022 2023 © 2024(f) + 2025(f) Moni Policy Re
Slide 5: Macro environment: regulations update
Macro environment Update on proposed and approved regulations The government agreed with the opposition on a protocol on the discussion schedule for the bill, which must be voted by the Senate in January 2025. Pension reform A Tax Compliance law was published with the aim of collecting 1.5% of GDP o
Slide 6: Macro environment
Macro environment After using democratic channels to address social discontent, Chile has now closed the constitutional reform chapter of recent years Strong Central Bank that quickly dealt with economic imbalances arising from both internal and external pressures- achieving a soft landing Investmen
Slide 7: Agenda
1| Macro Update 3| Balance sheet and results 4| Conclusions 5| Annexes
Slide 8: 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 9: Chile First: increasing our client base
Chile First Digital bank with Work/Cafe: Increasing our client base without TOTAL BRANCHES tellers ; < -18. |, | i ie j Dec-22 Dec-23 Sep-24 TOTALCLIENTS 4,213,326 3448163 2 oP a ad ah oh a a > ah oh ea eek get Sek Sek IG +4.2 million clients PRODUCT SIMPLIFICATION Traditional 32 3 mm Work/Café Tota
Slide 10: Getnet ramping up operations and reaching larger clients
Chile First Getnet ramping up operations and reaching larger clients and retailers Getnet* By «Santander * Our acquiring network that uses the four- part model to operate, offering an integrated payments solution to businesses, launched in 2021. * The cross selling of other financial products has be
Slide 11: All this translates to higher fees and better efficiency
Chile First All this translates to higher fees and better efficiency C CREDIT CARD TRANSACTIONS ($) » C MUTUAL FUNDS: AUMs ($) ) Cisurance BROKERAGE: POLICY AMOUNT 6)) $ million == $ million == $ million -Ep— 6,208,997 13,295,060 203,078 9,720,987 160,421 5,492,882 7M23 7M24 9M23 9M24 6M23 6M24 1 (e
Slide 12: Agenda
1| Macro Update 2| Chile First: Strategy 2023-2026 4| Conclusions 5| Annexes
Slide 13: Profitability and ROAE continues to increase in 3Q24
Balance sheet and results Profitability and ROAE continues to increase in 3Q24, YTD ROAE above guidance Quarterly ROAE YTD ROAE % % 23.1 ED 20.7% aa 18.2% 10.4% 3Q23 4023 1024 2024 3024 9M23 9M24 Q A ‘1 . F Ch$ million Ch$ million , D: __— 581,109 217,724 243,133 176,918 319,486 i a 3Q23. 4Q23 1024
Slide 14: Retail loans continue to grow steadily while commercial loans contract
Balance sheet and results Retail loans continue to grow steadily while commercial loans contract in the quarter Total loans Ch$bn 40,139 40,812 41,253 40,527 40,325 Sept-23 Dec-23 Mar-24 Jun-24 Sep-24 Adjusted for the deconsolidation of the subsidiary, Bansa, and our SCIB generate-to-distribute mode
Slide 15: Total deposits increase 3.7% YoY
Balance sheet and results Total deposits increase 3.7% YoY Ch$bn Ch$ billion 9M24 YoY QoQ \ GD Demand deposits 13,123 1.7% (0.8%) Time deposits 16,494 5.4% 2.7% 28,555 29,676 = 30,417 29,298 29,617 Total deposits 29,617 3.7% 1.1% Mutual funds? 13,295 36.8% 6.7% Bonds 10,615 3.0% (3.5%) LCR? 180% Sep
Slide 16: NIM of 3.9% in 3Q24 and 3.4% YTD
Balance sheet and results NIM of 3.9% in 3Q24 and 3.4% YTD, as cost of funds continues to Fall NIM! & Inflation ¥ 44% 4.5% 42% 35y, 41% 3.9% 3.5% Ae 3.3% eee “~ “02% = 2.2% 227% % —— -0.6% -1.2% 0.8% -1.9% 2021 2022 2023 1024 2024 3024 2024 —NIM (1) — Client NIM (2) Non-Client NIM (3) 2024 2021 2022
Slide 17: Cost of risk at 1.3% YTD
Balance sheet and results Cost of risk at 1.3% YTD with asset quality in line with this part of the economic cycle. Total loans Provisions -NPL(1) —e Impaired (2) Coverage ratio (3) - Ch$ billion 9M24 YoY QoQ 270.0% 226.7% 185.3% Gross provisions and write-offs (498.5) 16.5% 1.4% 135.0% i 157.3% Pan
Slide 18: Portfolio breakdown by product
Balance sheet and results Portfolio breakdown by product Mortgage loans Commercial loans Consumer loans . ‘io! NPL ratio! NPL ratio! NEGLI Coverage? 41% Coverage? 118% Coverage? 382% % 4.1% 2.4% 2.5% 32% 38" 2.4% 1.6% 16% : 1.7% 9 Qsthis Ahad CED 0.8% 13% | i 1.6% G94 Dec/19 Dec/21_ Dec/23_ Jun/24_—
Slide 19: Digital platforms drive client growth and fees
Balance sheet and results Digital platforms drive client growth and fees in the quarter Fe nd Financial Transaction: Fees Ch$bn Ch$ billion 9M24 YoY QoQ Card fees 95.5 1.1% 8.6% Getnet 55.2 70.1% 63.2% Asset management 55.7 24.4% 5.9% Checking accounts 54.1 23.4% 4.6% Collection fees 48.6 0.3% 6.7%
Slide 20: Efficiency recovering to levels below 40%
Balance sheet and results Efficiency recovering to levels below 40% in the quarter with core expenses increasing below inflation and higher profitability Ch$ billion 9M24 YoY QoQ Personnel expenses 298.4 (5.8%) 2.9% Administrative expenses 276.0 21.3% (1.9%) Investment amortization 105.7 (1.5%) (1.1
Slide 21: Solid capital levels with a BIS ratio at 17.2%
Balance sheet and results Solid capital levels with a BIS ratio at 17.2% Core capital & BIS ratio 17.1% +500-600 bp 12.5% Es under ECB Including ATT’ regulation andTier2 9.0% Fully 11.1% 10.7% “A Loaded min. requirement in2025' * u u Sep-23 Phase-in Sep-24 Phase-in Tier 2 aml Core capital Current Ph
Slide 22: Agenda
1| Macro Update 2| Chile First: Strategy 2023-2026 3| Balance sheet and results 5| Annexes
Slide 23: Conclusions: 2024 Guidance Update
Conclusions 2024 Guidance Update Targets Loan Growth 1.3% L12M" ee ele digit NIM 3.4% 3.3% - 3.5% 3.4% - 3.5% ae ee Di grow Efficiency 40% YoY High 30%s High 30%s CoR 1.28% -1.3% ~1.3% ROAE 18.2% 17% - 18% 18% - 19% u 1. Includes the effect of BANSA deconsolidation (Ch$ 224 billion). 2. Target inclu
Slide 24: Soft guidance 2025 and medium term ROE
Conclusions Soft guidance 2025 and medium term ROE With the current macro expectations for 2025, our soft guidance for next year is: Mid single digit loan growth excluding SCIB's generate-to-distribute model. NIMs in the high 3%s Cost of risk stabilizing in 1.3% Efficiency in the mid 30%s ROE: 18-20
Slide 25: Santander
& Santander
Slide 26: Agenda
1| Macro Update 2| Chile First: Strategy 2023-2026 3| Balance sheet and results 4| Conclusions
Slide 27: Annexes - Unaudited financial information: assets
Annexes- (Unaudited financialinformation) Sep-24 Dec-23 Sep-24/Dec-23 Assets Ch$ Million % Chg. Cash and deposits in banks 1,894,336 2.723.282 (30,4%) Cash items in process of collection 874.353 812.524 7.6% Financial assets for trading at fair value through earnings TUEBIEE! Wen! WaiKS Financial de
Slide 28: 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 29: Annexes - Income statement
Annexes-(Unaudited financial information) Sept-24 Sept-23 ‘Sept-24/ Sept-23 $Millones % Var. Ingresos por intereses 2.748.040 2.859.612 89%) Gastos por intereses (1.666.788) (2.368.941) (29,6%) Ingreso neto por intereses 1.081.252 490.671 120,4% Ingresos por reajustes 320.227 351.791 (9,0%) Gastos p
Slide 30: Annexes - Quarterly income statement
Annexes —(Unaudited financial information) 3724 2724 $ Millones Ingresos por intereses. 884.368 882.798 Gastos por intereses (477.842) (518,798) Ingreso neto por intereses 406.526 364,000 Ingresos por reajustes 147.765 Gastos por reajustes (63.754) neto 94.012 Ingreso neto por intereses y reajustes
Slide 31: Annexes - Asset quality and profitability ratios
Annexes- (Unaudited financialinformation) (S millones) 3123 4123 1724 2124 3124 Calidad de activos, Cartera deteriorada * 2215504 2.291.621 2397573 2.573.808 2.694.292 Cartera en morosidad (NPLs) * 906.482 923.852 1.044.628 1.079.179 1.250.929 Préstamos vencidos (mas 90 dias)? 414.102 488.699 564.28
Banco Santander Chile — Q3 2024 Earnings Presentation on 6ix