Santander Chile reports Q1 EPS 26c, consensus 36c

The company said, “As of March 31, 2024, net income attributable to owners of the Bank totaled $120 billion, reflecting a decrease of 11.4% compared to the same period from the previous year, along with an ROAE of 11.2%. This variation is due to several factors. On the one hand, there is an increase of 30.9% in the net income from interest and readjustments although this increase is offset by higher loan loss provisions, an increase in other specific expenses related to provisions for restructuring, and a higher effective tax rate. Our CET1 ratio remains solid at 10.4% and the total Basel III ratio reaches 17.0% at the end of March 2024. Risk-weighted assets increased 5.5% since March 31, 2023 and 2.4% QoQ6. We are actively seeking to reduce our market risk-weighted assets through netting and novation of our derivatives portfolio, resulting in a 3.0% YoY decrease. At the same time, core capital increased 4.8% since March 31, 2023 and decreased 4.3% QoQ primarily due to the increase in the provision for dividends related to the proposal by the Board for the distribution of 70% of the 2023 net income attributable to shareholders, which was approved in the Shareholders’ Meeting in April 2024.”