The following is a summary of the Banco Santander-Chile (BSAC) Q4 2023 Earnings Call Transcript:
Financial Performance:
Banco Santander-Chile reported $1.3 billion in customer deposits and $100 million in consumer loans related to the Life segment, alongside $32 million in yearly fees.
Predicted ROEs are aiming to reach about 20% in the second half of the year.
The bank achieved total shareholder return of 35.8% in 2023 and a net income of CLP496 billion, down 39% YoY.
The bank showed a quarter-by-quarter net income increase, with RoE reaching 16.6% in the final quarter of 2023.
Bank registered a 34.7% YoY increase in operating segment net contribution due to lower interest rates and strategy across segments.
Net Interest Margins are expected to strongly recover to reach between 3%-3.5% in 2024
Cost of credit remained in line with guidance at 1.2% and non-net interest income sources showed significant growth.
Operating expenses decreased by 5.6% YoY and a core equity ratio of 11.1% was reported at the end of Q4 2023.
Business Progress:
Santander-Chile aims to expand their customer base to 4.5 million by 2026, maintaining high levels of customer satisfaction.
Initiatives under the Chile First strategic pillar, including focus on sustainability and financial inclusion, are showing success.
Green housing portfolio has grown to approximately CLP100 billion and the bank has issued green bonds worth approximately $50M.
The bank has advanced in digital banking, attracting over 117,000 clients to their new account option and plans to implement the Gravity digital banking platform by 2024.
The bank is set to spend $450 million from 2023 through 2026 on branch modernizations and tech initiatives.
The bank sees loan growth and non-net interest income growth in 2024, and RoE is expected to reach normal levels of 15%-17%.
The bank expects economic activity in Chile to grow around 2%, due to a less restrictive financial environment and increased labor market dynamism.
The company received critical recognition for its sustainable practices being awarded Best Bank in Chile by The Banker and Euromoney.
More details: Banco Santander Chile IR
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