Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Q3 2021 Earnings Presentation
37 slides from Banco Santander-chile's earnings presentation, Oct 29, 2021
Slide 1: Banco Santander Chile 3Q21 Results
Banco Santander Chile 3Q21 Results October 29, 2021
Slide 2: Important information
Important information Banco Santander Chile caution that this presentation contains forward looking statements 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
Slide 3: Agenda
AGENDA MACRO & COVID-19 UPDATE SAN CHILE: BALANCE SHEET AND RESULTS SAN CHILE: STRATEGIC INITIATIVES UPDATE 3 3
Slide 4: Successful vaccination strategy is resulting in low contagion levels
Macroeconomic environment Successful vaccination strategy is resulting in low contagion levels New contagions (7 days rolling) Daily average deaths 8,000 250 6,000 200 Rest of the 150 4,000 country 100 2,000 50 Metropolitan 0 area 0 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 28-02-2020 28-09-2
Slide 5: Improvement in terms of trade and better economic activity
Macroeconomic environment Improvement in terms of trade and better economic activity Monthly activity and trend Monthly growth Index 2013 = 100, SA % YoY 125 Non-mining GDP 25 120 Trend 2013-2019 20 19% 115 15 10 110 5 105 0 100 -5 -10 95 -15 90 -20 2013 2014 2015 2016 2017 2018 2019 2020 2021 Jan-1
Slide 6: GDP to grow 11% in 2021 with higher inflation and rates
Macroeconomic environment GDP to grow 11% in 2021 with higher inflation and rates GDP growth Inflation Annual growth % Annual change in UF inflation, % 11.0 6.3 4.0-5.0 1.0-2.0 1.1 2.7 2.7 -5.8 2019 2020 2021 (f) 2022 (f) 2019 2020 2021 (f) 2022 (f) Monetary Policy Rate %, eop 5.00 3.50 2.75 1.75 1.
Slide 7: Agenda
AGENDA MACRO & COVID-19 UPDATE SAN CHILE: BALANCE SHEET AND RESULTS SAN CHILE: STRATEGIC INITIATIVES UPDATE 7 7
Slide 8: Strong results in 3Q21 driven by client activities
Balance sheet & results Strong results in 3Q21 driven by client activities Net operational income Ch$mn +33.7% Net income attr. to shareholders & ROE +1.2% Ch$mn +62.6% 471,108 352,330 437,577 453,177 465,482 600,000 21.1% 0 500,000 0 3Q20 4Q20 1Q21 2Q21 3Q21 Net income attributable to shareholders
Slide 9: Surpassing the competition
Balance sheet & results Surpassing the competition Net interest margin Efficiency YTD, as of September 2021 YTD, as of September 2021 51.3% 4.1% 47.3% 44.8% 42.3% 3.7% 3.3% 3.6% 37.7% 3.2% Competitors Competitors ROE YTD, as of September 2021 21.1% 17.5% 12.8% 12.1% 9 9 Source: Ratios calculated by
Slide 10: NII increases 13.9% YTD
Balance sheet & results NII increases 13.9% YTD NIM1 & Inflation Net interest income 5.00% 4.3% 4.2% 4.2% Ch$ bn 9M21 YoY QoQ 4.1% 3.7% Net interest income 1,310 13.9% 0.8% 4.00% Avg. Int. earning assets 42,373 7.5% 4.5% 3.00% 2.00% 1.3% 1.50% Average loans 34,755 1.1% 2.4% 1.1% 1.1% 0.50% 1.00% 1.3
Slide 11: Non-interest bearing demand deposits up 24.9% YoY
Balance sheet & results Non-interest bearing demand deposits up 24.9% YoY Total Deposits Ch$bn +16.2% Ch$ bn 09M21 YoY QoQ +1.3% Demand deposits 17,367 24.9% (2.0%) Time deposits 12,490 6.0% 6.2% 29,478 29,857 25,686 25,143 26,317 Total Deposits 29,857 16.2% 1.3% Mutual funds1 8,853 6.3% 6.7% LCR3 2
Slide 12: Demand deposit growth among individuals remains strong
Balance sheet & results Demand deposit growth among individuals remains strong CLP Time Deposit Cost Evolution1 Demand deposits by segment 2.28% Ch$ bn 09M21 YoY QoQ 2.13% 1.94% Individuals 7,106 39.7% 1.5% 1.50% SMEs 3,264 29.6% 5.4% 0.60% 0.59% Retail 10,370 36.3% 2.7% 0.50% 0.50% Middle Market 4,
Slide 13: Loan growth accelerates in the quarter
Balance sheet & results Loan growth accelerates in the quarter Total Loans Ch$ bn 9M21 YoY QoQ Ch$bn Individuals1 20,419 7.4% 2.6% +2.5% Consumer 4,857 (1.4%) 1.8% +3.1% Auto 650 50.1% 17.5% 34,880 34,409 34,507 34,678 35,757 loans 2 Mortgages 13,354 10.3% 3.0% SMEs 4,804 (1.8%) (2.5%) Retail 25,223
Slide 14: Asset quality evolution remains solid
Balance sheet & results Asset quality evolution remains solid Total loans Commercial loans % of loans % of loans 259% 255% 198% 189% 5.3% 4.7% 6.4% 6.3% 1.6% 1.2% 2.0% 1.7% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 NPL(1) Impaired (2) Coverage ratio (3) NPL(1) Impaired (2
Slide 15: Positive evolution of asset quality with cost of credit at 1.1%
Balance sheet & results Positive evolution of asset quality with cost of credit at 1.1% Quarterly cost of risk1 Provision for loan losses % 2.2% Ch$ bn 09M21 YoY QoQ 1.5% Gross provisions and (334.2) (30.7%) (0.0%) write-offs 1.0% 1.0% 1.1% 1.1% Recoveries 55.7 (1.3%) 6.8% Provisions (278.5) (34.6%)
Slide 16: Fee growth continues to accelerate
Balance sheet & results Fee growth continues to accelerate Fees & financial transaction Fees Ch$bn Ch$ bn 9M21 YoY QoQ +21.6% Card fees 68.5 34.8% 9.4% +1.8% Getnet 3.2 --% 123.7 % 120.4 Asset management 35.1 5.4% 11.7% 118.3 99.1 105.0 Insurance brokerage 32.0 3.4% 6.3% 73.1 41.8 34.6 Guarantees, c
Slide 17: Efficiency at 37.7% YTD. Cost growth under control
Balance sheet & results Efficiency at 37.7% YTD. Cost growth under control Operating expenses Ch$bn Ch$ bn 9M21 YoY QoQ 00 60.0%Personnel +2.5% 299.0 (2.4%) (5.3%) expenses 50 55.0%Administrative 194 201 198 203.0 7.0% 1.6% 192 190 expenses 00 50.0% Depreciation 90.5 10.4% 5.1% 50 41.5% 45.0%Operati
Slide 18: BIS ratio at 14.2% as phase-in of BIS III begins
Balance sheet & results BIS ratio at 14.2% as phase-in of BIS III begins Core capital & BIS Ratio 15.4% › BIS III phase-in begins 14.2% 15.1% › Issuance of AT1 for US$ 700 4.4% 4.7% 3.0% million in October 2021 to 1.5% increase Tier I ratio by 1.6% › Current estimated payout remains at 50-60%, which
Slide 19: Well above estimated minimum BIS III / CET1 requirements
Balance sheet & results Well above estimated minimum BIS III / CET1 requirements Sept. 2021 Min. Min. Min. Min. Min. Banco Santander Chile Actual 2021e 2022e 2023e 2024e 2025e Min CET1 4.8% 4.5% 4.5% 4.5% 4.5% Systemic charge 1 1.5% 1.1% 0.9% 1.1% 1.4% Conservation buffer 0.6% 1.3% 1.9% 2.5% 2.5% Pi
Slide 20: Agenda
AGENDA COVID19: REGULATORY AND MACRO UPDATE SAN CHILE: BALANCE SHEET AND RESULTS SAN CHILE: STRATEGIC INITIATIVES UPDATE 20 20
Slide 21: Change the Bank
Strategic initiatives Maintain a high level of consumer Transform the Bank into a platform satisfaction, increase the productivity of allowing clients to use the bank as a all channels, and be more efficient and channel or as a software provider to profitable. develop business. Give access to digita
Slide 22: Record growth in Life and Superdigital accounts
Strategic initiatives Record growth in Life and Superdigital accounts Life Superdigital Digital product for unbanked Prepaid digital product for the population that seeks to be part of unbanked population seeking a low- Bank, receiving merits for positive cost bank account financial behavior (throug
Slide 23: Successful launch of Getnet
Strategic initiatives Successful launch of Getnet Acquiring network that uses the four-part model to operate, offering a payments solution to businesses • Pays instantaneously • Different plans for different clients • No more “Credit or debit?” POS sold per quarter 19,062 16,155 11,476 ~48,000 93% P
Slide 24: Insuretech platforms driving insurance brokerage fee rebound
Strategic initiatives Insuretech platforms driving insurance brokerage fee rebound An online platform that compares An online platform that compares insurance between different providers insurance between different providers in a quick and transparent way. in a quick and transparent way. 56K Insuran
Slide 25: Productivity continues to rise & Work Cafés reopen
Strategic initiatives Productivity continues to rise & Work Cafés reopen Branches Productivity per point of sale Volumes1 per point of sale, Ch$mn -7.1% +16.6% 365 358 19 339 25 16 193,553 54 59 62 165,935 286 280 261 Sep-20 Dec-20 Sep-21 Sep-20 Sep-21 Traditional Workcafe Select In October 2021, a
Slide 26: Strong rise in account market share
Strategic initiatives Strong rise in account market share Net current account openings, LTM July 2021 Net Promoter Score (NPS)2 Advantage in checking account opening1 630,344 9x 26x 14x 1.6x1 54 56 59 402,789 51 47 53 50 51 73,198 48 32,305 42,351 45 45 45 46 42 Santander Banco de BCI Itaú Total sys
Slide 27: Record growth in clients
Jan-17 Mar-17 3,498,576 May-17 Jul-17 Sep-17 Strategic initiatives Nov-17 Total client evolution Jan-18 lending segment Mar-18 Exiting low income consumer May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 pandemic COVID-19 3,462,655 May-20 Record growth in clients……
Slide 28: Reflects successful digital strategy and improvements in NPS
Strategic initiatives …..reflects successful digital strategy and improvements in NPS Total Clients Sep-20 Sep-21 Current accounts (including Digital Clients Superdigital) +14% 4,015,157 Loyal Clients +39% +45% +10% 1,933,581 2,004,722 807,208 3,509,957 1,350,251 1,488,902 733,529 28 28 Loyal client
Slide 29: Reflects successful digital strategy and improvements in NPS
Strategic initiatives …..reflects successful digital strategy and improvements in NPS 38 58 62 100 100 100 Limited Robust Advanced 2017 2019 2021 Under Retail and #3 #9 Specialized Banks: out of 89 in out of 854 in the sector the region 29 29
Slide 30: We invite you: Santander ESG Talk
WE Miguel Mata Claudio Melandri CEO President You are cordially invited to Santander's ESG Talk, where INVITE we will discuss Santander Chile's ESG initiatives. Tuesday, November 16, 2021 YOU 8:50 AM New York 10:50 AM Santiago, Chile 30 30 Please click here to sign up to our event
Slide 31: Updating guidance for 2021
Conclusions Updating guidance for 2021 Previous guidance Updated guidance • Loan growth accelerating as Loan growth accelerating as economy reopens economy reopens • NIMs at 4.1% NIMs at 4.2% as inflation gains • Cost of credit at 1.0%-1.1% momentum in 4Q21 • Fee income growth 8%-10% Cost of c
Slide 32: Thank you.
Thank you. Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: 32
Slide 33: Annexes
Annexes « Santander
Slide 34: Unaudited Balance Sheet
Annexes Unaudited Balance Sheet Sep-21 Sep-21 Sep-20 Sep-21/Sep-20 US$ Ths1 Ch$ Million % Chg. Cash and deposits in banks 6,810,190 5,526,197 3,210,078 72.2% Cash items in process of collection 564,819 458,328 546,692 (16.2%) Trading investments 63,116 51,216 138,701 (63.1%) Investments under resale
Slide 35: Income statement 9M21
Annexes Sep-21 Sep-21 Sep-20 Sep-21/Sep-20 US$ Ths1 Ch$ Million % Chg. Interest income 2,307,111 1,872,128 1,587,609 17.9% Interest expense (692,252) (561,735) (437,399) 28.4% Net interest income 1,614,858 1,310,393 1,150,210 13.9% Fee and commission income 504,885 409,694 332,013 23.4% Fee and comm
Slide 36: Quarterly income statement 3Q21
Annexes 3Q21 3Q21 2Q21 3Q20 3Q21/3Q20 3Q21/2Q21 US$ Ths1 Ch$ Million % Chg. Interest income 806,401 654,362 603,343 434,457 50.6% 8.5% Interest expense (262,569) (213,064) (165,445) (52,889) 302.9% 28.8% Net interest income 543,832 441,298 437,898 381,568 15.7% 0.8% Fee and commission income 187,974
Slide 37: Annexes: Key Indicators
Annexes: Key Indicators Profitability and efficiency 09M21 09M20 Change bp Net interest margin (NIM) 1 4.1% 3.9% 23 Efficiency ratio2 37.7% 40.3% -261 Return on avg. equity 21.1% 12.5% 854 Return on avg. assets 1.3% 0.8% 48 Core Capital ratio 9.6% 10.7% -106 BIS ratio 14.2% 15.1% -97 Return on RWA 2
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