Banco Santander-Chile (BSANTANDER) Q1 2026 earnings summary

Executive summary

• Strategy focuses on digital transformation, customer-centricity, and value creation, leveraging digital platforms and Work Café branches to enhance customer experience and profitability.

• Achieved strong profitability with ROAE at 23.0% in 1Q26, surpassing initial 2026 targets in a low inflation environment.

• Customer base expanded to nearly 4.8 million, with digital and active customers increasing 4% YoY and market share in current accounts at 21.2% as of February 2026.

• Maintained leadership in efficiency, with a best-in-class efficiency ratio of 32.5% and recurrence of 68.9%.

• Included in the Dow Jones Sustainability World Index, ranking among the top 25 sustainable banks globally.

Financial highlights

• Net income attributable to shareholders was Ch$273.2 billion as of March 31, 2026, up 7.0% sequentially but down 1.7% YoY, with ROAE at 23.0%.

• Net interest income rose 7.9% YoY to Ch$457.5 billion; NIM at 3.8% YTD, down from 4.1% YoY due to lower inflation.

• Fee income increased 4.5% YoY, with fee plus financial transactions up over 9% and a recurrence ratio of 68.9%.

• Operating expenses decreased 6.7% YoY, improving the efficiency ratio to 32.5% from 35.0%.

• Cost of risk at 1.55% in 1Q26, reflecting a one-off provision for a specific commercial client.

Outlook and guidance

• Guidance for 2026: mid-single-digit loan growth, NIMs around 4%, non-interest income growth in mid to high single digits, efficiency ratio in mid-30s, cost of risk around 1.3%, and ROE between 22% and 24%.

• Higher inflation expected to support NIMs and efficiency in the short term, but macro volatility may pressure loan growth and asset quality later in the year.

• ROE expected to exceed initial guidance, potentially reaching 25% or higher.

• Cost of risk guidance maintained at 1.3%–1.35%, with potential reversal of Q1 provisioning in Q2 or Q3.

• Macro expectations for 2026: GDP growth 2.0%, UF variation 3.7%, average monetary policy rate 4.5%.