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Banco Santander Chile (BSAC)
NYSE:BSAC
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Banco Santander Chile
(NYSE:BSAC)
Rating:73Outperform
Price Target:―
Banco Santander Chile (BSAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.75B
Dividend Yield3.96%
Average Volume (3M)428.52K
Price to Earnings (P/E)13.1
Beta (1Y)0.62
Revenue Growth-22.63%
EPS Growth32.31%
CountryUS
Employees8,757
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.61
Shares Outstanding471,115,330
10 Day Avg. Volume293,695
30 Day Avg. Volume428,518
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio0.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside-8.15% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Banco Santander Chile Business Overview & Revenue Model
Company DescriptionBanco Santander-Chile, together with its subsidiaries, provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, Corporate Investment Banking, and Corporate Activities segments. The company offers debit and credit cards, checking accounts, and savings products; consumer, automobile, commercial, mortgage, and government-guaranteed loans; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines, as well as mortgage financing services. It also provides mutual funds, insurance and securities brokerage, foreign exchange, financial leasing, factoring, financial consulting and advisory, investment management, foreign trade, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, and brokerage services, as well as derivatives, securitization, and other tailor-made products. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. As of December 31, 2021, the company operated 326 branches, which include 220 under the Santander brand name, 14 under the Select brand name, 7 specialized branches for the middle market, and 22 as auxiliary and payment centers, as well as 1,338 ATMs, including depository ATMs. Banco Santander-Chile was incorporated in 1977 and is headquartered in Santiago, Chile.
How the Company Makes MoneyBanco Santander Chile generates revenue through a variety of streams, primarily focusing on interest income and fee-based services. Interest income is derived from the bank's lending activities, which include personal loans, mortgages, and commercial loans to businesses. The bank charges interest on these loans, which constitutes a significant portion of its revenue. Additionally, Banco Santander Chile earns money through fees and commissions associated with its banking services, such as account maintenance, transaction fees, credit card fees, and investment product management. The bank also benefits from its insurance and asset management divisions, which provide additional revenue through premium collections and management fees. Strategic partnerships and collaborations within the Santander Group further enhance its capabilities and revenue potential.
Banco Santander Chile Financial Statement Overview
Summary
Banco Santander Chile demonstrates strong profitability and operational efficiency with stable margins. However, cash flow management remains a concern due to historical volatility and recent negative operating cash flows. The balance sheet is solid, but high liabilities require careful management to maintain financial stability.Income Statement
Banco Santander Chile shows consistent profitability with a strong gross profit margin and net profit margin over the years. Recent revenue growth, however, is volatile, with a significant drop in 2023 but a rebound in 2024. EBIT margins are robust, indicating operational efficiency, though EBITDA data is missing.75
Positive
Balance Sheet
The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio, improving from previous years. The equity ratio indicates a reasonable level of equity financing, supporting financial stability. However, the high total liabilities could pose risks if economic conditions worsen.70
Positive
Cash Flow
Cash flow from operations has fluctuated, with recent years showing negative operating cash flow, which is concerning. The free cash flow position has improved in 2023, but historical instability raises concerns about cash management. The absence of consistent free cash flow growth and operating cash flow to net income ratios limits a positive outlook.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.10T | 1.48T | 2.20T | 2.27T | 2.04T | Gross Profit |
| 2.10T | 1.91T | 2.20T | 2.27T | 2.04T | EBIT |
| 1.19T | 677.08B | 885.90B | 1.06T | 690.15B | EBITDA |
| 0.00 | 0.00 | 1.02T | 1.20T | 761.72B | Net Income Common Stockholders |
| 857.62B | 579.43B | 792.28B | 842.47B | 547.61B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.27T | 10.52T | 11.30T | 11.14T | 11.16T | Total Assets |
| 68.40T | 71.09T | 68.42T | 63.84T | 55.70T | Total Debt |
| 15.08T | 12.71T | 10.58T | 17.41T | 14.69T | Net Debt |
| 11.81T | 6.93T | 5.31T | 12.15T | 10.83T | Total Liabilities |
| 63.04T | 65.77T | 63.46T | 59.41T | 52.00T | Stockholders Equity |
| 4.29T | 5.19T | 4.85T | 4.33T | 3.62T |
| Cash Flow | Free Cash Flow | |||
| 374.67B | 1.19T | -472.28B | -673.95B | -905.78B | Operating Cash Flow |
| 482.39B | 1.32T | -358.99B | -587.18B | -819.99B | Investing Cash Flow |
| -106.58B | -117.85B | -94.60B | -91.77B | -70.11B | Financing Cash Flow |
| -372.85B | 2.95T | -384.32B | 238.66B | 102.09B |
Banco Santander Chile Technical Analysis
Positive
25.04
Price Trends
23.18
Positive
21.56
Positive
20.30
Positive
Market Momentum
0.60
Positive
62.39
Neutral
63.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSAC, the sentiment is Positive. The current price of 25.04 is above the 20-day moving average (MA) of 24.56, above the 50-day MA of 23.18, and above the 200-day MA of 20.30, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSAC.
Banco Santander Chile Risk Analysis
Banco Santander Chile disclosed 23 risk factors in its most recent earnings report. Banco Santander Chile reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Santander Chile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.68B | 12.01 | 23.88% | 5.05% | -16.96% | -10.73% | |
77 Outperform | $11.12B | 12.22 | 15.99% | 14.91% | -0.15% | 8.78% | |
74 Outperform | $6.10B | 17.04 | 9.05% | 8.59% | -46.30% | -79.35% | |
74 Outperform | $16.24B | 10.51 | 16.35% | 4.54% | 5.84% | 12.67% | |
73 Outperform | $11.75B | 13.06 | 16.05% | 3.96% | -22.63% | 32.31% | |
70 Outperform | $19.80B | 16.45 | 10.89% | 3.90% | -3.94% | 31.52% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% |
* Financial Sector Average
Performance Comparison
BSAC
Banco Santander Chile
25.04
6.04
31.79%
BCH
Banco De Chile
31.08
8.01
34.72%
BMA
Banco Macro SA
94.32
40.17
74.18%
BSBR
Banco Santander Brasil
5.30
0.10
1.92%
CIB
Bancolombia
41.57
11.60
38.71%
BAP
Credicorp
204.24
49.25
31.78%
Banco Santander Chile Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 3.34%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
Banco Santander Chile's earnings call highlighted significant profit growth and strong digital strategy execution. However, economic uncertainties and challenges in the mortgage loan sector present concerns. The bank's operational efficiency and strategic digital investments are promising, yet external economic factors pose risks.Q1-2025 Updates
Positive Updates
Significant Increase in Net Profits
Banco Santander Chile achieved a net profit of CLP 278 billion, marking a 131% increase compared to the same quarter last year, with a return on average equity of 25.6%.
Strong Digital Strategy Performance
The bank's digital strategy led to a 17% growth in fees and a 40% growth in financial transactions year-on-year, supported by a significant increase in digital clients to over 2.3 million.
Efficient Operations
Banco Santander Chile maintained a best-in-class efficiency ratio of 35% and a Net Promoter Score of 57 points, indicating strong customer service performance.
Recognition and Awards
The bank was recognized as the best private bank in Chile by Euromoney.
Successful Cloud Migration
The bank successfully migrated its core banking systems to the cloud, enhancing its digital transformation efforts.
Negative Updates
Economic and Political Uncertainty
Chile's GDP growth forecast was downgraded to 2.1% for 2025 due to external shocks and political uncertainties, affecting business and consumer confidence.
Challenges in Mortgage and Commercial Loans
The mortgage NPLs continued to grow and the commercial loan book showed weak demand, contributing to a stable yet concerning asset quality scenario.
Fiscal Deficit Delays
Chile's structural deficit target has been delayed, with the deficit reaching 3.3% of GDP, above the expected 1.9%.
Company Guidance
In the Banco Santander-Chile First Quarter 2025 Earnings Conference Call, the bank provided guidance on several key financial metrics. The Chief Financial Officer, Patricia Perez, highlighted that the bank achieved a net profit of CLP 278 billion, marking a 131% increase compared to the same quarter last year, with a return on average equity (ROAE) of 25.6% and an efficiency ratio of 35%. The bank's net interest income (NII) grew by 42%, driven by a net interest margin (NIM) of 4.1%. Additionally, the bank's digital strategy led to a 17% growth in fees and a 40% increase in financial transactions year-on-year. The bank's cost of risk is projected to stabilize around 1.3% for 2025, with an ROAE expected to remain above 21%. The call also addressed the macroeconomic environment, predicting GDP growth of 2.1% for 2025 and inflation convergence with a UF forecast of 2.6% by the end of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.