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Banco Santander Chile ADR BSAC

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Santander Chile Posts a Strong Second Quarter Even as Political Uncertainty Looms

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

Narrow-moat-rated Banco Santander Chile posted a strong set of numbers in the second quarter beating the FactSet consensus estimate of CLP 0.94 per share with reported adjusted EPS of CLP 0.98. These results equate to a return on equity of 21.6% for the quarter. Political uncertainty related to constitutional rewrite continues to be an overhang on the share prices of our Chilean bank coverage. We believe that the current constitutional rewrite process could have significant implications for Chile in the long term. However, we do not see a material medium-term impact on the bank’s performance from the political uncertainty. Chile has seen political uncertainty and social unrest for a few years now, but the underlying Chilean economy continues to be robust. We think that Chile is set for a strong economic recovery on the back of expansionary monetary & fiscal policy, strong commodity prices, and increased mobility with more than 60% of the Chilean population fully vaccinated.

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Company Profile

Business Description

Santander Chile is the largest bank in Chile by assets. It has the most expansive footprint of any bank in the country, ranks first in lending market share, and ranks second in deposit market share. It is the most efficiently run commercial bank in the region, resulting in returns on equity in the high teens. The bank generates revenue through net interest income, fee and commission lines, and treasury operations, with the latter following Chile inflation (denominated in the UF) closely.

Contact
Bandera 140, 20th Floor
Santiago, Chile
T +56 23202000
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 10,470

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