Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Q1 2024 Earnings Presentation
31 slides from Banco Santander-chile's earnings presentation, May 14, 2024
Slide 1: Banco Santander Chile
Banco Santander Chile May 14, 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 for Chile GDP Growth Annual growth % 11.3% 0.6% 0.2% 6.1% 2019 2020 = 2021 2022 = 2023 %, eOp 11.25% 8.25% 4.00% 1.75% pecs 50% 2019 = 20202021 2022 = 2023 Source: Central Bank of Chile and Santander estimates 2024(f) 2025(F) 4.75% 4.00% 2024(f) | 2025(f) Inflation UF in
Slide 5: Macro environment
Macro environment Macro view GDP Index 100 = 2019 15 —chite — Brasil —Mexico —Peru — Colombia 105 95 85 2019 2020 2021 2022 2023 Monetary Policy Rate %, eop 16 . —Brasil —thile —Colombia +——Mexico cs —Peru —us Jan.19 Jan.20 Jan.21 Source: Central Bank of Chile and Santander estimates lation Infl IPC
Slide 6: Macro environment: update on proposed regulations
Macro environment Update on proposed regulations Fiscal pact Pension reform Fintech Law Fraud Law Bill includes anti-tax evasion measures, greater fiscal oversight and transparency, measures to support productivity and economic growth, and income tax changes. Bill considers the social security, the
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: Digital Bank and 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 10: Chile First: digital initiatives and Work/Café boost productivity
- o Chile First Digital initiatives and Work/Café boost productivity indicators < 7 * NEW 4Q, 1 | g | Work Café <P Ee Work Café <P q = york/ INR Work Café <P a f Expresso <a S ¢ 2 ]s10 Inversiones ; 1 p StartUp oye |h + Consolidating cash services into the Work/Café Expresso. + Abranch dedicated to
Slide 11: Chile First: specialization and added value for companies
Chile First ® Specialization and added value for companies C NUMBER OF BUSINESS CURRENT ACCOUNTS D) J =, (Thousands) y | ife Dec-22;279 a + 3 6 % YoY Business + For small and medium sized companies that want Current accounts a current account for their business. Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Ju
Slide 12: Chile First: leading our peers in NPS
Chile First Leading our peers in NPS for the last 4 years BENCHMARK NET PROMOTER SCORE (NPS)" 2 0 2 3 NET SATISFACTION (SN)! v4 Top1 % Branch w Branch 1@ Top Managers s Contact Top1 & Center ®- Santander —@Peer1 —@Peer2 —@Peers* Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 J
Slide 13: Agenda
1| Macro Update 2| Chile First: Strategy 2023-2026 4| Conclusions 5| Annexes
Slide 14: First quarter ahead of guidance with ROAE of 11.2%
Balance sheet and results | First quarter ahead of guidance with an ROAE of 11.2% and book value increasing Quarterly net income attributable to shareholders Accumulated gross income from segments Ch$ million Ch$ million | eD- 176,918 709,090 725,250 Tl | » a 1Q23 2023 = 3Q23) «4Q23—— «1924 3M23 3M2
Slide 15: Loan growth driven by commercial and mortgage lending
Balance sheet and results Loan growth driven by commercial and mortgage lending Total loans Total loans by product r Ch$ billion 3M24 YoY QoQ Ch$bn —G@p— Consumer 5,637 5.5% 0.7% 40,139 40,812 41,253 Auto loans" 912 2.0% 2.2% 39,118 39,362 ‘ Credit cards 1,780 13.8% 2.6% Mortgages 17,270 7.7% 1.1% C
Slide 16: Solid liquidity levels and total deposits increase 2.5% QoQ
Balance sheet and results Solid liquidity levels and total deposits increase 2.5% QoQ Total deposits Ch$bn Chs billion 3M24 YoY Q0Q u ED Demand deposits 13,509 (2.2%) (0.2%) Pye) Time deposits 16,908 18.5% 4.8% 28,072 28,164 28,555 29,676 : Total deposits 30,417 8.4% 2.5% Mutual funds 11,549 35.5% 1
Slide 17: NIM recovery on track at 2.7% in 1Q24
Balance sheet and results NIM recovery on track at 2.7% on 1024 NIM! & Inflation Net interest incom Ch$ billion 3M24 YoY 10 4.2% 4.1% 4.1% $ 00 3.5% 3.2% Net interest income 311 77.2% 23.4% 2% 3.4% 33% a Net readjustment income 52 (49.1%) (59.4%) 0.8% 2.7% . + 5 2.2% Net income from interest and -0.
Slide 18: 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) Impaired (2) =e Coverage ratio (3) zm TS 185% 126% 135% ° 157% 142% 5.9% 5.9% 5.6% 5.8% 52% yy 4.8% ° ° . me e ad 2.1% 21% . 19% 23% 2.5% Dec/18 Dec/19 Dec/20 Dec/21 Dec
Slide 19: Cost of Credit at 1.26% YTD
Balance sheet and results Cost of Credit at 1.26% YTD Cost of risk? % 1.17% 3M23 1.26% 3M24 Provisi Ch$ billion 3M24 YoY Q0Q Gross provisions and write-offs (160.2) 21.9% — (138.3%) Recoveries 31.0 55.1% (144.2%) Provisions (129.3) 15.5% (137.0%) Cost of risk(YTD) 1.26% 1. Cost of risk: Provision ex
Slide 20: Digital platforms drive client growth and fees in the quarter
Balance sheet and results Digital platforms drive client growth and fees in the quarter Fees and Financial Transactions Ch$bn 129.9 135.9 1215 115.2 126.9 1023 2023 3023 4Q23 1024 Fees § Financial Transactions New interchange fee regulation started in October 2023. Estimated negative gross impact in
Slide 21: Core expenses on target growing in line with inflation
Balance sheet and results Core expenses on target growing in line with inflation. One-time provision charge in other operating expenses in1Q24 Chf billion 3M24 YoY QoQ rating expen: Ch$bn Personnel expenses 91.0 (6.4%) (4.7%) I Gp— Administrative expenses 92.3 19.4% (0.4%) 09 331 t 260 ] Investment
Slide 22: Solid capital levels with a BIS ratio at 17.6%
Balance sheet and results Solid capital levels with a BIS ratio at 17.6% Core capital & BIS ratio Current Phase-in of Basel II! Dec-22 Dec-23 May-24 Dec-24 Dec-25 17.8% 17.6% Minimum from Banking Law 4.5% 4.5% 4.5% 4.5% 4.5% 12.5% D-SIB 0.38% 0.75% 0.75% 1.13% 15% Including AT1 Minimum CET1 4.88% 5.
Slide 23: Agenda
1| Macro Update 2| Chile First: Strategy 2023-2026 3| Balance sheet and results 5| Annexes
Slide 24: Conclusions: 2024 guidance
Conclusions Guidance 2024 guidance * Macro assumptions: GDP~2.8% / UF inflation: ~3.6% / MPR at 4.75% by year end. * Mid-single digit loan growth as economy reactivates * Margins improving, with NIM of ~3.2% * Non-NIl growing mid single digits with good customer product trends but impacted by interc
Slide 25: Santander
ny 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) Mar-24 Dec-23 Mar-24/Dec-23 Assets Ch$ Million % Chg. Cash and deposits in banks 2.629.959 2.723.282 (3,4%) Cash items in process of collection 605.718 812.524 (25,5%) Financial assets for trading at fair value through earnings BEES Tae! cues Financial deriv
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 - Unaudited financial information: income statement
Annexes-(Unaudited financial information) Mar-24 Mar-23 ‘Mar-24/Mar-23 Ch Million % Ver. Interest income 380875 323.500 62% Interest expenses (670,148) (748,155) (104%) Net interest income 310,727 175,345 72% Reagjustment income 081 148,464 (675%) Readjustment expenses (01,330) (45.928) (75.5%) [Net
Slide 30: Annexes - Unaudited financial information: quarterly income statement
Annexes —(Unaudited financial information) 1024 4023 1023 ya24/1023 1024/4023 Ch$ Million % Var. Interest income ‘e087 1012382 323500 co eax) Interest expenses (670.148) (761,148) (748,155) (10.4%) (02.0%) Net interest income 30727 i814 175,365 712% 230% Readjustment income 63081 173,628 148,464 (57
Slide 31: Annexes - Unaudited financial information: key figures and ratios
Annexes- (Unaudited financialinformation) ch$ Niltion Loans Consumer Mortgage Commercial Interbank ‘Total loans (includes interbar ‘Allowance for oan losses Total loans, net of allowances Deposits Demand deperite Term deposits Total deposits ‘Mutual funds (off balance shee!) Total Client Funds Loans
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