Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Q4 2024 Earnings Presentation
30 slides from Banco Santander-chile's earnings presentation, Feb 7, 2025
Slide 1: Banco Santander Chile
Banco Santander Chile February 7, 2025
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| Balance sheet and results 3| Conclusions 4| Annexes
Slide 4: Key messages
Strategy 2023-2026 Key messages Results Net Profit — 2024 cip$ 865 billion +73% YoY NIM 2024 3.6% +137bp vs 2023 ROAE 2024 20.2% +822 bp vs 2023 4024 Highlights +) Quarterly ROAE of 26.0% Nll increases 9% QoQ with a NIM of 4.2%. Efficiency of 36.5% and recurrence levels of 61.2%. Total deposits grow
Slide 5: Progress in our strategy 2023-2026
Strategy 2023-2026 Progress in our strategy 2023-2026 Expanding our models and solutions to effectively cover the entire population and companies in Chile 2023-2024 Strategic pillars * Reaching 4.3 mn total customers with high levels of experience (NPS 57pts), driven by our digital product offering
Slide 6: Digital bank with Work/Cafe: Increasing our client base
Strategy 2023-2026 Digital bank with Work/Cafe: Increasing our client base ” TOTAL BRANCHES PRODUCT SIMPLIFICATION eee without human tellers [182% In-house technology of Santander, that allows 386 m Traditional 31 0) transitioning to the cloud from legacy mainframe mi Work/caré Total products techno
Slide 7: All this translates to higher fee generation and better efficiency
Strategy 2023-2026 All this translates to higher fee generation and better efficiency Fees Credit Card Transactions + +17% YoY | Businesscurrentaccounts 452k +25% YoY growing 1 9% YoY i Mutual Funds AUMs +33% YoY Getnet clients 192k +27% YoY Insurance Brokerage +21% YoY Market Share Getnet 17% # tra
Slide 8: Agenda
1| Strategy 2023-2026 3| Conclusions 4| Annexes
Slide 9: ROAE of 26.0% in 4Q24 and 20.2% YTD
Balance sheet and results ROAE of 26.0% in 4Q24 and 20.2% YTD, above guidance and showing positive trends Quarterly ROAE 4023 1024 2024 3024 4024 0 : F Ch$ million | (- 7aa.133 270514 217.724 ~~ 176.918 120.251 4023 1024 2024 3024 4024 YTD ROAE % 20,2% 11,9% 12M23 12M24 . F Ch$ million 857.623 496.4
Slide 10: Delivering 20%+ ROE, surpassing 2024 targets
Balance sheet and results Delivering 20%+ ROE, surpassing 2024 targets Loan Growth | NIM Fees Efficiency I CoR ROAE u 4% (excluding effects from Bansa and Generate to distribute model) 3.6% 9% YoY 39% 1.29% 20.2% Mid single digit growth 3.4% - 3.5% High Single Digit growth High 30%s ~1.3% 18% - 19%
Slide 11: NIM of 4.2% in 4Q24 and 3.6% YTD
Balance sheet and results NIM of 4.2% in 4Q24 and 3.6% YTD, as cost of funds continues to fall Annual NIM? Net interest income H Ch$ billion 12M24 YoY QoQ H 4,2% i i 3,6% | 3,6% 3,9% Net interest income 1,505 102.7% 4.2% ' 2.7% Net readjustment income 314 (17.3%) 37.7% 2,2% : Net income from interes
Slide 12: Total deposits increasing 5.7% YoY
Balance sheet and results Total deposits increasing 5.7% YoY Total deposits Total deposits ch$bn Ch$ billion 12M24 YoY QoQ ‘ ED Demand deposits 14,261 5.3% 8.7% 30.417 31.359 Time deposits 17,099 6.0% 3.7% 29.676 ; 29.298 = 29.617 : Total deposits 31,359 5.7% 5.9% Mutual funds? 13,588 32.6% 2.2% Bon
Slide 13: Retail loans drive loan growth during 2024
Balance sheet and results Retail loans drive loan growth during 2024 Total loans Ch$bn 40.812 41.253 40.527 40.325 41.324 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Adjusted for the deconsolidation of the subsidiary, Bansa, and our generate-to-distribute model, our loan book would have grown 4% YoY 1, Santa
Slide 14: Asset quality and cost of risk
2.000 3,1% 3,2% 3,5% 200 1,6% 2,5% 2,7% 3,0% 1.500 2,3% 1,35% 2,5% 150 1,29% 1,4% 2,0% 1,26% 1,25% 1.000 1.251 1.311 1,2% 1.045 1.079 1,5% 100 1,2% 924 500 1,0% 0,5% 50 1,0% - 0,0% 4Q23 1Q24 2Q24 3Q24 4Q24 - 0,8% 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs NPL ratio (50) 0,6% (100) 0,4% 4.000 6,7% 6,7% 8,0% 3.500
Slide 15: 19.6% growth in Fees + Financial Tx.
Balance sheet and results 4Q 2024 vs 4Q 2023 19.6% growth in Fees + Financial Tx. F ind Financial Transaction: Ch$bn i 4023 1024 2024 3024 4024 Fees @ Financial Transactions * Newinterchange fee regulation started in October 2023. * Estimated negative gross impact in 2024 is Ch$ 25bn. ¢ Implementati
Slide 16: Efficiency ratio of 39% in 2024
Balance sheet and results Efficiency ratio of 39% in 2024, with 4Q at 36.5%. Recurrence of 60%. Operating expenses Ch$ billion 12M24 YoY QoQ Personnel expenses 398.8 (3.3%) (4.5%) +10.5% ‘ 410.5% 5.2 Administrative expenses 366.4 14.5% (0.7%) 340 746 352 Investment amortization 141.4 (1.6%) 3.5% Tot
Slide 17: Solid capital levels with a BIS ratio at 17.1%
Balance sheet and results Solid capital levels with a BIS ratio at 17.1%, including dividend provision of 70%. Core capital & BIS ratio Increase in dividend provision in 2024 to 70% ae 17.1% +500-600 bp * As of December 2024, we are provisioning a dividend payout of 70% of 125% a under ECB income vs
Slide 18: Agenda
1| Strategy 2023-2026 2| Balance sheet and results 4| Annexes
Slide 19: Conclusions: 2025 Outlook
Conclusions 2025 Outlook Loan Growth | NIM Fees Efficiency Wu CoR ROAE ; 11. Adjusting for our generate-to-distribute model. 2025 targets Mid single digit growth! >4% Mid Single Digit growth Mid 30%s ~1.3% 20%-21% Macro Expectations for 2025 GDP: 2.3% UF 4.1% MPR Avg. 4.9% 19
Slide 20: Santander
& Santander
Slide 21: Agenda
1| Strategy 2023-2026 2| Balance sheet and results 3| Conclusions
Slide 22: Macro environment
Macro environment Macro view GDP growth Inflation Annual growth % UF inflation, annual variation, % 11;3% 13,3% 21% gq, 25% 2.3% 2.2% 6.6% || Ee as 48% 4.4% 4.1% | | 2.7% a We 3,0% ma = i 2020 2021 2022 2023 2024(f) 2025(f) +2026 (Ff) 2020 2021 2022 2023 2024 © 2025(f) 2026 (f) Moni Policy Re Inem m
Slide 23: Solid balance structure and liquidity levels
Balance sheet and results Solid balance structure and liquidity levels Structural balance sheet US$bn, December 2024 Balance Sheet sensitivities Consumer 5,6 Inflation: Demand Deposits 14,3 + Approx 58% of loans are linked to inflation. + UF Gap is managed through some UF deposits and bonds, and hed
Slide 24: A diversified and universal bank
Balance sheet and results A diversified and universal bank Composition of our loan book 100% Interbankctoans;0,0% Consumer; 14,3% 90% 80% 70% an Mo} 5% 50% 40% 30% 20% Col 1% 10% 0% Total loans Total commercial loans 1m Social services and other communal services; 28.8% Trade ; 19.0% mi Real estate
Slide 25: 2000 3,0% 2000 5,0%2000 2,5% 1800 1800 1800 1600 2,5% 1600 ,0%1600 2,4% 1400
2000 3,0% 2000 5,0%2000 2,5% 1800 1800 1800 1600 2,5% 1600 4,0%1600 2,4% 1400 1400 2,0% 1400 1200 1200 3,0%1200 2,3% 1000 1,5% 1000 1000 2,2% 800 600 800 1,0% 2,0% 800 2,1% 600 600 400 200 0,5% 400 1,0% 400 2,0% 200 200 0 0,0%0 0,0% 0 1,9% 3000 6,0% 3000 10,0% 3000 6,0% 2500 5,0% 2500 2500 8,0% 5,0%
Slide 26: Annexes - Unaudited financial information (assets)
Annexes- (Unaudited financialinformation) Dec-24 Dec-23 Dec-24/Dec-23 Assets Ch$ Million % Chg. Cash and deposits in banks 2,695,560 2,723,282 (1.0%) Cash items in process of collection 572,552 812,524 (29.5%) Financial assets for trading at fair value through earnings AEE TOA CLS Financial derivati
Slide 27: 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 other
Slide 28: Annexes - Unaudited financial information (income statement)
Annexes-(Unaudited financial information) Dec-26 Dec.23 (Dec-24/ Dec-23 OS million %Og leterest tacoma 73,620,583 ‘3,872,573 (es%) “letevest expanse ers.) (3,130,089) (32.4%) Mat interest income (504,741 742,488 02.7% Readjustment income 474236 sag esx) Readjustment expense (eqe72) (152.464) 50% Met
Slide 29: Annexes - Unaudited financial information (quarterly)
Annexes —(Unaudited financial information) saz 308 203 sa24/eaz3_4az4/3a24 ig mation Weng. lncorest income mse esas [ozs | a8) | aw) lncerect expense (ee3083) (era (rena) (e108) cr) ‘Nat interest income 3483 406,526 21.814 sa2% an ‘eacjustment income 154007 708.420 373628 (438) am eadustment expense
Slide 30: Annexes - Asset quality and profitability ratios
Annexes- (Unaudited financialinformation) QMS Million 4023 1024 2024 3024 4q24 ‘Asset quality: Impaired loanss- 2,291,621 2,397,573 (2,523,808 (2,694,292, (2,782,562, ‘Mom-pertorming loans (NPLs} 6 923,852 1.004628 1,078,179 3250.529 1,311,374 Past due lane? 488,699 364280 576,686 13.857 eon | ean r
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