Santander Chile reports Q3 EPS 76c, consensus 43c

The company said, “As of September 30, 2023, net income attributable to shareholders reached Ch$319,486 million, decreasing 54.8% compared to the same period last year and with an ROAE of 10.4%. This lower result was mainly due to the impacts perceived in the NIM3 produced by the deceleration of inflation, especially in the third quarter, and higher interest rates that reduced the return on assets in UF and increased the funding costs…Our CET1 ratio remains solid at 10.7% and the total Basel III ratio reaches 17.1% at the end of September 2023. Risk-weighted assets increased 4.9% YTD and 2.9% QoQ. We are actively seeking to reduce our market risk-weighted assets through netting and novation of our derivatives portfolio, resulting in a 2.3% decrease this quarter. This was offset by higher credit risk-weighted assets due to the effect of the depreciation of the Chilean peso on our foreign currency portfolio. At the same time, basic capital increased slightly by 0.6% QoQ mainly due to lower growth in results and an increase of 1.5% YTD which considers the payment of dividends authorized at the last shareholders meeting in the month of April.”