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Banco Santander-Chile (BSAC)
:BSAC
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Banco Santander Chile
(NYSE:BSAC)
Rating:74Outperform
Price Target:
$27.00
▲(12.27% Upside)
Banco Santander Chile (BSAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.31B
Dividend Yield5.53%
Average Volume (3M)320.19K
Price to Earnings (P/E)10.6
Beta (1Y)0.57
Revenue Growth18.54%
EPS Growth65.80%
CountryUS
Employees8,757
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.60
Shares Outstanding471,115,330
10 Day Avg. Volume244,120
30 Day Avg. Volume320,188
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.01
Enterprise Value/Ebitda0.02
Forecast
1Y Price Target
$25.67Price Target Upside6.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 various key streams, primarily from interest income on loans and advances to customers. The bank earns significant income from personal and commercial loans, including mortgages, auto loans, and credit facilities. Additionally, BSAC collects fees from its extensive range of banking services, such as account maintenance, transaction fees, and card services. Investment banking activities, including advisory services and asset management, contribute to its earnings as well. Strategic partnerships with financial technology firms and collaborations with local businesses enhance its service offerings and customer reach, further driving revenue growth.
Banco Santander Chile Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 5.11%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Banco Santander-Chile's earnings call highlighted strong financial performance, with robust returns and client base expansion. However, challenges such as geopolitical tensions, political uncertainty, and higher cost of risk were noted. Despite these challenges, the bank maintained a positive outlook for profitability and digital growth.Q2-2025 Updates
Positive Updates
Cloud Migration Success
Banco Santander-Chile completed the migration of its legacy mainframe service to the cloud, now operating 100% on the cloud, enhancing its digital strategy.
Record ROE and Net Income
The bank achieved an ROE of 25.1% in the first half of 2025 with a net income of CLP 550 billion, and an ROE of 24.5% in the second quarter with a net income of CLP 273 billion.
Client Base Expansion
The number of current accounts increased by 10% year-on-year, driving a 7% and 8% growth in active and digital clients, respectively.
Fee and Transaction Growth
Fee generation increased by 16.3% year-on-year, with credit card transactions up by 12% and mutual funds brokered up by 19%.
Sustainability and Recognition
Banco Santander-Chile received high sustainability rankings and was recognized as the best bank in Chile by Euromoney and as a Top Employer for the seventh consecutive year.
Negative Updates
Macroeconomic and Political Uncertainty
Rising geopolitical and trade tensions affected the Chilean peso, and upcoming elections pose potential risks for economic policies and business environment.
Higher Cost of Risk
The bank's cost of risk rose to 1.39% year-to-date due to increased nonperforming loans, particularly in the commercial loan portfolio.
Loan Growth Challenges
Loan growth expectations were revised to low single digits due to weak demand, particularly in the large corporate segment.
NPL Levels Above Industry Average
Nonperforming loans in the commercial and mortgage portfolios are higher than industry levels, attributed to a high SME loan concentration and variable-rate mortgages.
Company Guidance
During Banco Santander Chile's Second Quarter 2025 Earnings Conference Call, the bank provided a comprehensive outlook for the remainder of the year. The bank anticipates a 2.1% GDP growth for Chile, with inflation expected to reach 3.6% by year-end. The Central Bank of Chile's recent policy rate cut to 4.75% is expected to further decline to 4.5% by the end of 2025. Despite the political landscape, including the upcoming presidential elections, the bank maintains a robust outlook for profitability with an ROE guidance of 21% to 23%. Loan growth is expected to remain in the low single digits due to weak demand, particularly in the commercial segment, while the consumer lending portfolio shows healthy growth prospects. The bank's net interest margin is projected to stabilize at around 4.1%, with improved asset quality expected to bring the cost of risk down to approximately 1.35%. Additionally, non-interest income is forecasted to grow in the high single digits, supported by an expanding client base and increased transactionality. The bank's efficiency ratio stands at an impressive 35.3%, reflecting strong cost controls and digital transformation efforts.Banco Santander Chile Financial Statement Overview
Summary
Banco Santander Chile demonstrates strong profitability and revenue growth, essential for a regional bank. Despite high leverage and low equity ratio typical for the industry, potential liquidity issues are noted due to declining free cash flow and negative cash flow ratios.Income Statement
Banco Santander Chile has shown strong revenue growth with a notable increase in Total Revenue over the last year, with a TTM Gross Profit Margin of 72.92% and a Net Profit Margin of 33.02%. The EBIT Margin stands at 44.12%, and EBITDA Margin at 44.28%, indicating efficient operational performance. However, the Revenue Growth Rate has fluctuated over the years, which could imply some volatility in revenue streams.82
Very Positive
Balance Sheet
The company's Balance Sheet reveals a Debt-to-Equity Ratio of 2.29, indicating a high leverage level typical for banks. The Return on Equity (ROE) is strong at 22.63%, showcasing good profitability and efficient use of equity. However, the Equity Ratio is low at 6.67%, suggesting limited buffer against financial distress.76
Positive
Cash Flow
There is a substantial decline in Free Cash Flow from the previous year, with a negative Free Cash Flow Growth Rate. The Operating Cash Flow to Net Income Ratio is 0.03, which indicates low cash generation from operations relative to net income. The Free Cash Flow to Net Income Ratio is negative, which may pose liquidity concerns.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.76T | 4.90T | 5.22T | 4.72T | 3.37T | 2.04T |
| Gross Profit | 2.29T | 2.09T | 1.59T | 1.85T | 1.97T | 2.04T |
| EBITDA | 1.36T | 1.24T | 835.15B | 1.02T | 1.20T | 761.72B |
| Net Income | 1.01T | 852.96B | 579.43B | 792.28B | 842.47B | 547.61B |
Balance Sheet | ||||||
| Total Assets | 66.96T | 68.40T | 71.09T | 68.42T | 63.84T | 55.70T |
| Cash, Cash Equivalents and Short-Term Investments | 1.95T | 7.61T | 10.52T | 11.30T | 11.14T | 11.16T |
| Total Debt | 10.23T | 14.45T | 12.42T | 10.58T | 10.38T | 14.69T |
| Total Liabilities | 62.49T | 63.04T | 65.77T | 63.46T | 59.41T | 52.00T |
| Stockholders Equity | 4.40T | 5.25T | 5.22T | 4.85T | 4.33T | 3.62T |
Cash Flow | ||||||
| Free Cash Flow | -77.75B | 374.67B | 1.19T | -472.28B | -673.95B | -905.78B |
| Operating Cash Flow | 26.12B | 482.39B | 1.32T | -358.99B | -587.18B | -819.99B |
| Investing Cash Flow | -77.09B | -106.58B | -117.85B | -94.60B | -91.77B | -70.11B |
| Financing Cash Flow | -1.07T | -372.85B | -515.29B | -384.32B | 238.66B | 102.09B |
Banco Santander Chile Technical Analysis
Positive
24.05
Price Trends
24.16
Negative
23.72
Positive
21.54
Positive
Market Momentum
-0.18
Negative
55.02
Neutral
82.09
Negative
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 24.05 is above the 20-day moving average (MA) of 23.49, below the 50-day MA of 24.16, and above the 200-day MA of 21.54, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 82.09 is Negative, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.22B | 10.79 | 16.25% | 13.92% | -8.45% | 29.39% | |
78 Outperform | $19.82B | 12.83 | 16.35% | 5.59% | 3.89% | 15.26% | |
74 Outperform | $11.31B | 10.64 | 24.02% | 5.53% | 18.54% | 65.80% | |
74 Outperform | $14.62B | 11.42 | 22.07% | 7.26% | -13.16% | -8.10% | |
74 Outperform | $4.56B | 1,042.63 | 0.11% | 3.08% | -62.73% | -99.74% | |
70 Outperform | $18.52B | 18.08 | 9.43% | 6.16% | -3.77% | -10.59% | |
67 Neutral | ¥815.90B | 12.84 | 9.17% | 3.05% | 8.46% | 12.94% |
* Financial Sector Average
Performance Comparison
BSAC
Banco Santander Chile
24.05
4.99
26.18%
BCH
Banco De Chile
28.99
6.07
26.48%
BMA
Banco Macro SA
71.42
18.70
35.47%
BSBR
Banco Santander Brasil
4.96
-0.11
-2.17%
CIB
Bancolombia
47.05
18.75
66.25%
BAP
Credicorp
249.20
95.93
62.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.