Finance
Banco Santander-Chile reported attributable net income of CLP 892.8 billion for the first nine months of 2026, an increase of approximately 12% year over year, with year-to-date return on average equity reaching 24.5%.
Total loans increased to CLP 48.8 trillion, while customer funds reached CLP 50.1 trillion, supported by stronger commercial lending, mortgage activity, auto financing and mutual fund growth.
For 2027, the bank expects loan growth of 6%–7%, return on average equity of 22%–24% and a net interest margin of approximately 4%, while continuing its investment in technology and branch renewal.
Banco Santander-Chile delivered attributable net income of CLP 892.8 billion during the first nine months of 2026, representing an increase of 11.9% compared with the same period last year. Return on average equity reached 24.5% year to date, while third-quarter ROAE stood at 19.1%.
For the third quarter alone, attributable net income was CLP 237.1 billion, declining 38% from the previous quarter and approximately 4% year over year. The decrease primarily reflected the normalization of inflation-linked UF adjustments following the unusually high variation recorded in the second quarter.
Despite the lower quarterly contribution, management emphasized that profitability remained solid, with year-to-date returns above its target.
For the first nine months, total operating income increased 4.2% year over year to CLP 2,269.1 billion. Operating results before credit losses rose 8.9% to CLP 1,520.7 billion, while operating expenses declined 4.2% to CLP 748 billion. These figures indicate that cost discipline contributed to operating performance during the period.
The bank reported stronger commercial activity during the third quarter, following several periods of relatively subdued loan growth.
Total loans, including balances measured at amortized cost and fair value through other comprehensive income, reached CLP 48.8 trillion. This represented growth of 2.3% quarter over quarter and 3.9% year to date.
Commercial lending was a major contributor, increasing 4% during the quarter and 5.2% since the beginning of the year. Mortgage lending grew 1.8% quarter over quarter and 4.5% year to date, while auto loans increased 1.3% during the quarter and 6.3% year to date.
Consumer lending presented a more mixed picture. Installment loans expanded by 1%, but total consumer loans declined 0.5% quarter over quarter, primarily reflecting a 3.5% reduction in credit card balances.
Customer funding grew faster than lending. Total deposits reached CLP 33.3 trillion, increasing 2.8% during the quarter and 9% year to date. Time deposits expanded 5.6%, while demand deposits declined slightly by 0.8%.
Mutual funds also recorded strong growth, reaching CLP 16.8 trillion, up 5.5% quarter over quarter and 15.5% year to date. Consequently, total customer funds reached CLP 50.1 trillion, representing an 11.1% increase over the previous year.
Liquidity indicators remained above regulatory minimums, with a liquidity coverage ratio of 172% and a net stable funding ratio of 117%, compared with the required minimum of 100%.
Net interest margin remained an important contributor to the bank’s profitability. The year-to-date margin reached 4.1%, approximately 10 basis points above the corresponding period in 2025.
Net interest and readjustment income totaled CLP 1.62 trillion during the first nine months, increasing 7% year over year. Net interest income grew 4.5%, while net readjustment income increased 21.8%.
However, the bank’s results remain sensitive to inflation-linked adjustments. The third-quarter normalization in UF variation demonstrated how changes in inflation can influence reported earnings and quarterly profitability.
Net fee and commission income declined 3.3% year over year to approximately CLP 426.8 billion, while net financial results increased slightly by 0.6% to CLP 216.8 billion. These developments highlight the importance of diversifying revenue beyond traditional interest-generating activities.
Santander-Chile continues to pursue its strategic ambition of becoming a digital bank with a physical presence, combining scalable digital services with customer-facing advice through its WorkCafé network.
Its strategy is organized around three pillars: Think Customer, Think Global and Think Value.
Think Customer focuses on improving customer propositions, attracting new clients, increasing customer satisfaction and expanding relationships across retail and business segments. The bank has an ambition to serve more than 3.5 million active customers, including 400,000 small and medium-sized enterprises.
Think Global centers on digital transformation through global platforms and an AI-powered operating model. The objective is to improve customer experiences while increasing productivity and simplifying internal processes.
Think Value focuses on sustainable profitability, recurring revenue and operating efficiency. The bank maintains a long-term return-on-equity ambition above 20% and a dividend payout target of 60%–70%.
Supporting this strategy is a three-year investment plan of $450 million announced in September 2026. The programme will focus on technology improvements, data utilization, process simplification and the renewal of branches and WorkCafé locations.
The bank also operates across five complementary business lines: retail and commercial banking, corporate and investment banking, wealth management and insurance, consumer banking, and payments through Getnet.
Retail banking remains central to the franchise, representing 66% of loans, 48% of deposits and 69% of margins. Meanwhile, corporate banking, payments and wealth-related activities contribute to the group’s broader fee-generation and revenue-diversification strategy.
Management expects Chile’s economic environment to improve in 2027 following a challenging year marked by weaker mining production, higher energy costs and subdued non-mining activity.
The bank’s economic outlook anticipates flat GDP growth in 2026, followed by a recovery to approximately 3.5% in 2027. Investment is expected to be a major contributor, supported by the normalization of mining activity and a stronger pipeline of large-scale projects.
Gross fixed capital formation is expected to increase by more than 5%. Consumption, however, is projected to recover more gradually as employment and real wages respond to improving economic conditions.
The bank also highlighted developments in housing finance. Mortgage interest-rate subsidies and the FOGAES state guarantee programme are supporting demand by reducing borrowing costs for eligible homebuyers. The combined reduction in mortgage rates can reach up to 100 basis points.
Chile’s proposed Capital Markets and Home Financing Reform, known as MK4, includes measures covering housing access, corporate financing, financial regulation and the country’s position as a regional financial center. Among the proposals are a state-backed housing financing mechanism, changes to taxation on qualifying fixed-income instruments and adjustments to financing costs for foreign bank funding.
Management noted that several measures remain subject to legislative discussions and that their eventual financial impact is not yet fully established.
Santander-Chile provided an initial outlook for 2027, anticipating loan growth of 6%–7%, a net interest margin of approximately 4% and return on average equity between 22% and 24%.
The bank also expects commissions and financial transaction results to increase at a mid-to-high single-digit rate, with an efficiency ratio in the low-30% range and a broadly stable cost of credit.
Management expects the statutory corporate tax rate to decline from 27% to 25.5% next year. However, the benefit from the lower tax rate is expected to be largely offset by a milder inflation environment, limiting the overall impact on profitability.
A further reduction in the statutory rate to 23% over the longer term could bring the bank’s effective tax rate into the high teens under normal economic conditions.
The bank also identified a one-time, non-cash accounting impact of approximately CLP 40 billion in the fourth-quarter tax line, alongside an estimated CLP 5 billion adjustment in other comprehensive income, associated with the tax-rate changes.
Regarding credit quality, management expects some improvement in non-performing loans during 2027, although it anticipates the ratio will remain around 1.35%–1.40% in the near term. Over the longer term, the bank indicated that its cost-of-risk objective is closer to the 1.2% range rather than the lower levels recorded in earlier periods.
These expectations reflect management’s assessment of the changing composition of its loan portfolio and the need to maintain appropriate provisioning as lending activity expands.
Banco Santander-Chile’s third-quarter performance reflects a combination of resilient year-to-date profitability, renewed lending activity and stronger customer funding. Although quarterly earnings moderated following the normalization of inflation-linked income, the bank maintained a 24.5% year-to-date return on average equity and continued to expand its commercial and mortgage lending businesses.
Its strategic priorities increasingly connect traditional banking operations with digital transformation, artificial intelligence, payments and wealth management. The planned $450 million technology and branch investment programme demonstrates the importance management places on improving operational efficiency while maintaining a physical customer presence.
Looking ahead, the bank’s 2027 outlook will depend on Chile’s economic recovery, credit demand, inflation trends and the implementation of proposed regulatory reforms. The ability to sustain profitability while expanding lending and managing credit quality will remain central to its longer-term performance.
For institutional investors and financial-sector observers, Santander-Chile offers an example of how a regional banking franchise is balancing digital investment, diversified revenue generation and capital discipline within an evolving economic and regulatory environment.
For a confidential discussion regarding retail banking strategy, insurance distribution models, customer loyalty ecosystems, digital financial services, or cross-border financial innovation opportunities, contact our senior advisory team. This article is provided for informational purposes only and does not constitute investment, financial, legal or tax advice, or a recommendation to buy, hold or sell Banco Santander-Chile securities. Financial results and forward-looking guidance reflect reported performance and management expectations, which may change as economic, regulatory and market conditions evolve. Investors should independently evaluate profitability, asset quality, capital adequacy, liquidity, credit concentration and valuation before making investment decisions.
November 8, 2026
November 8, 2026
November 8, 2026
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