Santander Chile reports Q1 EPS 36c, consensus 4oc

Net income attributable to shareholders in 3M23 decreased 42.4% YoY, with the Bank’s ROAE in 3M22 reaching 13.3%. Compared to 4Q22, net income attributable to shareholders in 1Q23 increased 33.3% YoY with the Bank’s ROAE improving from 10.1% in 4Q22 to 13.3% in the quarter. Our business segments continue to grow solidly with our corporate activities affected by the impact of higher interest rates on our cost of funding and the carry of lower rate interest earning assets. Fees continue to grow strongly while costs have remained controlled. Risk-weighted assets increased 1.2% YoY and 0.9% QoQ. We are actively seeking to lower our market risk through netting and novation of our derivatives portfolio leading to a 2.0% QoQ decline in market risk-weighted assets. At the same time, core capital increased 14.9% YoY due to higher results and an improvement in valuation adjustments and a decreased of 4.7% QoQ due to the change in the dividend provision policy mentioned above. As a result, our CET1 is 10.5% and the total BIS III ratio 17.0% at the end of March 2023. The Bank’s ROAE was 13.3% in 1Q23 compared to 10.1% in 4Q22, due to higher net income and a decrease in total equity.