BSAC - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. And I would like to welcome you to Banco Santander-Chile Q1 2022 Results Conference Call on 29th of April 2022. At this time all participant lines are in listen-only mode. The format of the call will be a presentation by the management team, followed by a question-and-answer session.

So without further ado, I would now like to pass to Mr. Muratore. Emiliano sir, open. ahead line your go is Please

Emiliano Muratore

Moreno, solid Good XXXX This results Welcome and to Claudio by is Investor Economist. Head first attending quarter Banco Santander-Chile continue strong financial healthy. today's Robert The strong today webcast joined continued you with Muratore, Soto, and momentum call. morning, Director Relations, successful CFO XXXX strong and and ROE thanks of digital We everyone. impressive bank client Emiliano I'm asset Managing Thank and performance, for safe Chief levels. and conference hope to call. conference our growth, to stay you quality a into all efficiency with strategy, has and sound

XXXX IFRS moved adopted many closer to standards. step accounting Chilean banks probably of first As you full one already noticed quarter in

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We have current included and the our to restated figures is commentary. restatement historical new management match in this forward our

four. an have with contact update questions don’t Soto on into get you macro for new [indiscernible]. we start hesitate this the our beginning format, If further about to When department Claudio Slide with IR our will scenario results,

Claudio Soto

negative domestic a in significantly political last the call, These lifted. Central we factors impact local sanitary in of CPI can as has index been Since in above the pandemic X.X% continue the continued relatively The during by restrictions all in tightening also domestic this by XXXX. a of Ukraine, down from our last second you GDP in five. on seen March, on global X.X% part Monetary and led XXXX has year growth liquidity. pushing Inflation pay expect grow will down year round war and rest uncertainty the in expected. it's affect proceeded Behind than this construction economy of abundant the increasing, slowed than where moderation economy phenomenon, weak the to finishing rate the you, Thank the Bank demand. physical its second we’re will drop All and Slide global more has activity. past are XX-years. price highest earlier little year pressures currency price XXXX, trend still After consumer in a begun Chile a context rose Emiliano. and year-on-year the in has off effects of substantially have this hikes

second local years should be rate policy the reaching impact Bank down Central global the the rising, has soften will end policy also continued basis March, slowing the prices. of monetary which monetary activity XX% prices We The its Ukraine, after that inflation X%. raising begin war the as moderates. in by and tightening points XXX local reaching food Next it reflected pushed until in few of keep up estimate quarter,

keep the policy expect finishing implies authority as Short cutting June. week of monetary medium hiking begin point monetary on at the after basis should XXX eventually policy March. activity third in the their end and with dovish tone hold the and its by slowed increase end down. rate by the report inflation cycle the another market rate and in After downward. at This year, term the during of adjust the published basis in meeting We a will point the XX quarter and they rate that X.X% monetary policy by next rate

current has ratified budget, the on which upside The fulfill the the surpassed Difficulty] they public year. substantial new compromised significantly increased which again. a high expenditure CPI [Technical implies contraction government in However to in this March, it's

to further with for in Recently income to allowing withdrawals cash effected to a proposal should -- be pressures be the work minimum of rejected fund adjustment in increase were process key inflationary still total Congress. so-called it announced Slide the sorry, defined, its and help detrimental compensate to about package be by in wage This Central grow to latest XX% million the the the debt. were the Going loss While Central risk with families in legal will expenditure. an with for the our [indiscernible] public monetization currency. budget. trust be of of not discussed stages. that through indexes Also a the and six, to an is Without low element the to new new Ministry of $XXX are in increasing Bank commission. market, soon, constitution value because liquidity reducing initiative, Similar agreement to They contain pension adjustment financed transfer will increase the might of Finance anytime

Next September is Referendum, X year will uncertainty. take reduce which on this will based

period reject large that will it new in the place. be that important likely current is to option will wins to there wins case However, take constitution. case the approved In amendments the transition implement still constitution option a that they

Emiliano Muratore

Thank you, Claudio.

same to reaching have the this Santander initiatives, with clients, here. update begin seven will On growth main We strong we for nine, active year-over-year, rapidly summarize and also monetizing also are our initiative, the initiatives as which clients elements And Life of that Life’s year-over-year. over on increased and majority clients, which using recent bank key Santander defined an a Slide of to platforms. main XX% their income In Life’s I in deposited at which those with and surpassing increase Santander of a products initiatives the in times are last XX% in rose are high we Loyal evolution first remained now which XXX,XXX billion, various active around those client quarter most On outlined been the a are will deposits successful is on quarter, Life, is move eight, increase year. our profitably XX% with slides, Life similar loyal few the next continues XX% Demand our in million clients gross year. year-on-year to $X.X competing amount the increase, success have client satisfaction. many $XX the clients focus digital of XX% of Slide by growth main the our compared Slide evolution

Prospera online Cuenta created each show Pyme account, Empresa also a XX% Today thought our companies in POS of $XXX a Dia mutual a such funds shown XX. credit $X quick year-on-year transfers in These around free On micro Pyme to beginning seek breakeven the XX% total business Mainly most different showcase Superdigital Cornershop Cuenta targeting business. growth Clients tools Life Slide fully two Pyme which the initiatives product we looks a history and responsible a obtaining non-incorporated have clients to grown unlimited to the first debit XX% incubation clients were Conectadas successful by then -- These consumer these Slide in to and limits alone, in fees support stage XX, XX% growth XX, quarter recent the helped and for Getnet in incorporated online. Mastercard as recently and has million Chile. sales. and monthly our This we digital monthly mobile a was already alliances grow lending payment will in acquiring Un Superdigital Uber, officially product individuals Microsoft, February need that loans. a been these current entrepreneurs Slide furthermore by we Getnet Life, over with get loan require last XXX time also for women has side, of program these help with mobile low Getnet a clients. share Life and bank seek grown on mainly deposits for time the with has account. are market year. from created Getnet’s and access bank XX% opened greater POSs, that clients our slightly entrepreneurs. small Superdigital with platform opportunities January loans, that go. a well projects POSs same expect increasing had sales to as and credit XXXX, the companies than the the account offer different year-over-year, as, launched other respectively. With Life and XXX and monthly multiple we their can has billion platforms card Cuenta called balance. in Prospera have fee need unbanked clients. products on to been and with sold who around transactionality, such target digital and XXX% current one-time end builds continue segments. a a are of and which financial for on successfully a not This government of companies transactionality XX,XXX -- as prepaid is be customer has monetize En the chose on in UN the XX% POS, their reaching as XXX,XXX On for cost by machines. for two Todas we it billion year with initiatives a Tu in purchase product launched. their this focus to are minimum products as consumer high companies and to focus have current same in as the deposits, or are has platform also is clients Superdigital nor -- to SMEs, a to day Getnet using XXX with generating they focused test through individuals, over rapidly is no over the future. digital account

security. have NPS be our allow mark a version, the ago. X.X been openings total translating kind XX, with record main main first outlook XX% into account but less a period, in efforts and current we we model continue for clients productive a client The as the In process to can bright total us to XX.X% accounts it different quarter we of result, bank quarter out restrictions, which are seen some focusing first with client will through how growth Slide As mid-XXXX branches. clients heightened surpassed its increased show give Since service XX-months caused competitors our client the year. a and driver XX, mainly the Slide the or the as Santander new digital cyber growth. the Slide XX.X%. rolled you our On of Workcafe continues better dipped network, of these We closing points On basis slightly in transforming app and our NPS. number lead XX, than higher has on XXX increased branch see to share how the same Life the have market of grown checking rest has on

Workcafe disease, we As areas in coupled strategy have again both the and and increasing driving welcoming of XXX,XXX year-over-year productivity. shopping per increasing with Overall, create online. branches. begun per the The sell rise last digital is X,XXX to to pandemic to brand co-working businesses Cafe reopen an has community already these and XX.X% our volumes or unique initiative XX,XXX important members in customers their our point employee and non-customers With shops and platform website helped volumes In the year this over sale cart XX.X% shops. year-over-year.

which show our last we ESG we Slide responsible their XX Moving commitments, progress. spoke about and XX, Santander talk in banking forward year our to

social make gap We gender programs. our the leadership all and to have amount commitments, -- pay as and we our supported of financially through increasing XXX,XXX of the the community empowered significant front, women in gap. and X.X positions people million continue In progress lowering of March

and XXXX, already what million financing book. March our environmental have $XXX to we on plastics the of On close front, all loan our eliminated and single-use sustainable we of as

now Markets this also Jones MSCI by Sustainability our will efforts In and We bank. the begun the quarter for look Skipping ESG our have only its affirmed really take as we fourth to the results. bank for can our indexes. being are of the Chile also we Index how recognized the Index confirmed at Emerging a power plants. XX, us to solar in the ahead various construction qualify Slide see A financial quarter, Dow On rating XX, Slide

attributable the same these loss XXXX financial of XXXX billion. shareholders quarter models totaled to as now of incorporated the Chilean XXXX information purposes. adjusted first balance have reminder banks new quarter for Chilean been The format net income In a -- for comparison a to Banks for sheet except to income the X for increased provisions. MXNX.X the has and As of include and a adopted expect IFRS January compared changes for statement. also XX.X%,

quarter in the Our our XX.X% reflected XX.X% client increase and with of mainly XX%. segments the higher by from by we grew the positive Slide loans the These review business increased ROE resulted X.X% XX, in inflation and were business segment Q-over-Q XX.X%. XX.X% and driven yielding excludes and X.X% grew of high in saw X.X% X.X% strong impact impact book, taxes, Q-on-Q loans. being net rising with which that and Loans translation which year-over-year driven provisions as which results up growth mortgage by our inflation on reached results. the individuals loan in income loan activities year-over-year. in driven product voluntary XXX%, On XX.X% Q-over-Q in auto on net contribution our a rates retail grew better All growth this results, banking's market X.X% year-over-year mainly was to profits year-over-year. middle increasing CIBS UF results segments, this Mortgage loans,

New in quarter. increased the rates fell as inflation and mortgage loan originations

of in increase a During mix. strong XX, in as success rates evolution The decreased our either the as to in show as Total funding deposits and previous their state the in bearing bond continue year-over-year On Q-over-Q, excess fund the increase liquidity growth clients X.X% Slide demand non-interest the XX% remains we quarter shipped After deposits economy large deposits. started aid market decrease retail to it offset have by corporate platforms we of digital the reopened partially Q-over-Q. and withdrawals, due the loans of our liquid. demand from our liquidity X.X funding Q-on-Q corporate quarters, segment to our and the form deposits rise. increased experienced the and in strong deposits X.X% of to or pension corporate time was CIBS see site spend

rates still time increased only that a will book, our than up. a have stance our given to to As bearing to will as regarding result average transferred be These earning loan funding duration cost the Q-over-Q. proactive go costs but policy interest rate our eventually funding expect go shorter first. assets, higher we monetary continues cost, deposits this interest liabilities up Despite, X.X% to continue rise funding

the in fourth Slide ’XX, reached flat XX, to year. on Moving quarter how compared to growth. The last volumes, year-on-year and of same rates we Bank's resulted the in and can interest inflation NII see X.X% in movements net margin the quarter XQ X.X% X.X% of in

During inflation our This a aggressive UF hike Bank quarter, policy rate the deteriorated offset with the which in of the strong variation remains and monetary high the by by the inflation was funding mix. X.X%. cost quarter Central in

X.X% asset we're high products. impaired decreased coverage ratio positive quality X.X%, to and XXX%. in Slide across NPLs NPL the remained seeing show ratio on evolution of The at in The the quarter. also These Moving and of quality to asset trends the equally remains different XX, loan how we solid respectively.

As XX, we led to first for indicators, quarter of Slide the of a cost asset positive XXXX. can of credit on these see quality X.X%

with some season the Chile. fees in and Getnet to quarter, and of to client our fee. for and products Tech to ALM During most Financial the activity positive also base, non-interest showed transactions, across provisions. the from our to year-over-year trends digital strong show any the not quarter did fourth the income very client led less higher were client high XX our our accompanied with vacation to key growth due platforms, continued with which this, by in such income seasonality With on recognize positive Fee Insured the appetite transactions results treasury card our driven year-over-year, thanks with XX.X% increased income quarter, ‘XX demand XX% interest show growth our products, Board Slide voluntary strategy of we Division. products, our additional reverse as Q-over-Q. or XX% Non-net Life, also as increased compared

leading been focused both initiatives driven on productivity it's despite the back grew on investments, front the XX%. despite control expenses digital of is and higher decreased expenses X.X% expense high efficiency record the digital and is by mainly digital for remain Other Slide our the administrative XX.X% the quarter. year-over-year cost which rates at and Bank expenses operating levels. efficiency out, Personnel This exemplary levels. remained XXXX-XXXX, year-over-year, shown inflation higher plan inflation carrying ratio the to strategy growth mainly stable years -- and As XXX of reached operations. million during our quarter has end only in XX, control operating digital currently investment

the item. and During established the had not operating risks, this in pandemic, to fall quarter, contingencies a bank been and for greater leading have repeated the provisions first which

now Okay, to analyze moving Slide on our XX, capital. we

since As the reporting of and end year-end a first the the bank BIS of XX.X%. of XX.X% under reminder total a core ratio equity now quarter, XXXX, ratio a are reported we discreet at

XX.X% were and ratios loaded fully XX.X% respectively. Our

Pillar requirement typo, and buffers During and set quarter it's X.X% it we a above XXXX different CETX ratio is that's considering the is XX%, on the X.X%. II minimum X%. All the but level we the much CMF are slide our achieved this in all the at currently by

in result show and the levels attractive last higher dividend than strong XX% Slide share, yield we on MXNX.XX our this of per ever as of a year's X.X%. April year of capital an paid highest As we with of XX, dividend

-- XXXX. us macroeconomic first our the updating led XX, guidance update Slide Strong one year. for are for quarter we and this evolving our to has guidance Finally situation on results the in

around around of rate X% of with growth lead to now XX%. of scenario an a to should This growth base X%. GDP X.X% Our loan assumes inflation

to more estimated. rising X.X% rates back to lowered of than the interest our short-term have quickly X.X% outlook on We for NIMs previously

On the non-NII hand, the XX% rise revenue for XX% other at unchanged to X.X% our cost outlook of to should X%. our remains risk and

strategy, with to and cost efforts digital expect All any we this for will below in, our may we my we I XXXX. With have. you inflation. of our gladly presentation Given XX% XX% to expect an grow ROE answer questions finish now

Operator

Thank much. you very

Q&A go Instructions] open. move question Goldman call. from of Our is line Please Tito from the Labarta We Sachs. your first now Mr. [Operator to will ahead sir, the comes part

Tito Labarta

margins question my I Hi, taking good morning, the my thanks for your and call Robert, little guess on is bit. question. a

I inflation to the But some just that’s because the to guidance into you maybe upside that your in Just, kind be rates, policy say and going the think given immediate rates. particularly but going high, to margin maybe you in would expectations how can if inflation do thinking of dynamics from between higher lowered of there inflation outlook so evolve, if and maybe some you the helpful. I that a then. that more margin pressure think maybe higher rates see next quarter interest is evolve, short-term, know on bit, remains you mean, give and color that's and continue But the you let's more XXXX some for just that how to think can impact

Emiliano Muratore

which part a that how X.X% be, significant of Hello, Tito, mean, around like the bad the the significantly the of variation let's where I shouldn't for for half the the how say quarter questions. your the Emiliano. March sense, was for mean the the because inflation for the quarter, I I month, April be could the shouldn't stays depend will so and was second the it know mean, combination on you next Central to the so second say, one be first that's be could inflation future already going and headwinds that. second worse, that high hard reacts for NIMs, quarter be -- we to We'll the headwinds second US Thank in this and bringing CPI is Bank regarding, the now quarter. be, let's will week

most the sense. trending come that Bank fourth should the of -- timing when of start the start every bottom. NIMs decisions And of cutting We down see on trends Central and Central maybe the the third that half figures, with inflation the then of balance quarter like quarter second be quarter, inflation third the but maybe could activity. evolution on being in in So the dependent the fourth the Bank can quarter might on that and the rates in depending to

the question interest the For big and combination XXXX, rates will of inflation. be

be that Bank stay the Central in cutting to will more inflation if high, But I the reaction that on Central maybe mean, the So be it in will of us. the inflation. overall for depend positive will the effect environment. modest Bank rates

Tito Labarta

X.X% you you, your -- XXXX, X.XX% do half every that's inflation margin month your down coming to Great, say, Emiliano, you the of come let's that -- helpful remain and think looking thank get scenario. the can with for that XXXX, then positive rate it stable, here about should second could forecast in How

Robert Moreno

[indiscernible] stable mark up year. that we be end the question could for this there where going combination say is let's to this be but are around year, we where

Tito Labarta

be more year when it or would say the be of the Okay. the half pressure to see a there you upside. bit little second of And would stable

Robert Moreno

the no, don’t know we -- No, for

Tito Labarta

With the full-year.

Thank right, you, helpful. all perfect. Okay, Emiliano. That's

Operator

Mr. ahead sir, from be Thank Suisse. is open. you go Please the line We'll very next much. Credit from your to moving Alonso now Garcia question

Alonso Garcia

-- what factor in this A asset of Thank you This to but I question healthy in report year asset on different is quality comfortable everyone. wanted how Emiliano behind environment? Thank well with so quality. an in asset asset of this environment Okay. metrics I morning mean reinforces your quality year, your for question. Muratore the you're you. good mean you positive you feeling remaining growth, to across Hi, My just terms outlook asset lower to GDP seeing my just quality control And ask, wanted for rising segments. the taking understand under inflation, the - guidance continue quality, mean -- I

quality. could and So on and asset with rates rising there pressures growth, lower obviously some inflation be higher

you so the So ratios, first coverage there came used we more at clear. the in Basically, like coverage, XXX%, bit the NPLs little was coverage we of if quarter consumer. But the what it's I a think in in but see increase from down, and some XXX%. we look basically did

and -- and of people, you weakness additional didn't touch, more we provisions consumer I we than in social portfolio. think the have go touch consumer might back already know, of before they all, NPLs So to the liquidity be there and some voluntary slowly less as weakness didn't any well used basically first and where But short lending will have covered very basically we've pandemic the that offers. were or we that coverage in

So cost of too really risk. shouldn't affect the much

book, inflation. Now of real in increase the of in inflation the are the obviously Chile as rate increase is over of rates mortgages doesn't all mortgage, comes the life you mortgage index for back lot because know, book for back from our the in to effect, fixed a and instalments the are mortgage of part but our the people's the variable

there. could So risk there I some be think

quality Now, when the very coverage and in asset increase the you we is did we that what did mortgage. figures mortgage at well. prudent and look first did the in quarter, be to But

-- increased the So to the I good. even that's out that's though to we've excluding remain years the mainly asset collateral. quarter through had value many increase of in mortgage, in the very mortgages were XXX% highest coverage quality provisions think mortgages in We

covered we've basically, two years charge-offs. around of So potential future

we coverage that products. high bit different tweaked So among a of the think having I ratios coverage the basically the benefit that's

clear remain with rest and okay? our cost why of the for able the the risk current year to were that's we the given economy, try outlook for outlook of So

Alonso Garcia

Thanks. That's Thank much. clear. very very you

Operator

you Thank very much.

America. Our Ernesto open. of is your sir, go Bank next line question from Gabilondo Mr. from ahead comes Please

Ernesto Gabilondo

taking question my the first in also of Thank you. and loan thanks is My of terms expectations. in Good growth terms morning for everyone, call. macro

reform you your if have and I Well, GDP that with then this growth pension fiscal tax agree it, look for you're to and X.X% However, go we finance having So still as of instead, you a year? to policy. into then however beyond expectations reform, continue need you to on monetary tighter XXXX.

GDP XXXX? So And can loan just for you growth the wondering do into how translated see that how growth? expectation

Emiliano Muratore

first Soto expectation. Yes. take on part the question Hi, Ernesto, the will growth well, of

out. monetary slows between to to GDP well Central above between And this this as this its then begin pandemic, are a bit that from would is adjustment policy multiplier Claudio -- mid We the the behind mentioned is growing a what think will nominal by Yes, losing mean, long year the families, we its of Bank terms we I like that financial growth end tight being what has expect year from there increasing where that, mean, expect roll the year to growth so next we little that the not the loan next the basically the and expansion figure, of latest to expenditure GDP the report. deleverage X% year I policy, What budget supporting also is term fiscal monetary behind coming single-digits policy start economy. able government we of easy as be the is the the the by and we considering inflation what the we our in plan That in have to of growth predict, fiscal growing have loan expect fiscal but down. year would have is estimate adjustment, I that that of strong growth. very and GDP. X% And in from

to of to range. going X% of growth X% X% coming X% single-digits to So that I X% to that would say and nominal around -- from those loans inflation GDP the X% mid growth from be to maybe we’re in being

Ernesto Gabilondo

question then second and my ROE. Thank Perfect. on is your you,

year. this the XX%, for XX% We target have have seen, you increased

so sustainable However, or at long-term some point do you we should expect the inflation, what see ROE? lower

Emiliano Muratore

will quarter rates the inflation -- the, end levels long-term normalized Yes, in mean, I because can’t a -- Central we half we long-term Bank we expectations more are take half we first XX% XX% range inflation I at I don’t don’t above of converge, and that our high change first first ROE to them will the of this that to back XX% in we XX% mean ROE, terms haven't this the mean that ROE. gave our and again considering the for say, period, range. I and go after to XX% down changed mean the inflation scenario showing

Ernesto Gabilondo

you very Okay, perfect. much. Thank

Operator

very you Thank much.

your will The the next Gomez next question Please Carlos sir, open. to comes HSBC. from is go moving We from caller. be Mr. ahead line

Carlos Gomez

And is the Thank decline growth the seen from Yes, last in that is have hello, reduction in for in already loan the did about how lend. wanted an I funding what I banks do been you and and fund Again, you and run? second the years? a that ask you see to in in a two mortgage or at from in impacting wanted future rates read has the two long-term quarters. fund, we related deposits and it And pension the the your think that increase [indiscernible] morning. see pension you. three see continuing long ask concern How impact on you the withdrawal I now that next business terms the evolving? good to about of to which we there

Emiliano Muratore

are sense pension there fund impact we deposits fact made funds the of of liquidity mortgages that, your pushed said, I that you deposits the for system -- more to amount pension is in you the assets withdrawals, needed Hello, and up rates market terms effects the Carlos, mean, still think there thank as around in interest long-term sell regarding mortgages also seeing that and of question. new the withdrawals demand the the significant still expensive. the time that in is long-term I -- the of

that's would going while, falling we the think see to I mortgages, demand long-term rates sharply. and for that, case don't be reduced for that a I the mean, So

with of true -- in So past. new the then for definitely in the in don't to the I mortgages XX the the be portfolio It's level ones that origination next, XX be will terms, also mortgage lower months nominal had growing inflation. than will we the know

you was have withdrawals are of also system the the loans demanding for but reduction people say So to why growth falling, that of of are effect single-digit liquidity, change a credit, and the the for you in by money I can the they inflation. people And numbers like let's they to consumer will have see in modest first size year. the terms less use even the that that still the demand. high the cost loans What opportunity portfolio, we or they like next in we is higher people us supported have because their numbers attractive consumer that's are, so the after behavior see of considering mean deposits more the seeing we and are deposit level is that maybe of say, happening in end time checking are of and this let's money deposit creating of from say terms shifting the more basically, rates spending people the also, them. the rates demand seeing year accounts. have are to in And that part let's yields towards now nominal

with business business, not on the mortgage us. the in international in let's near I of still that's be on So the domestic long-term because expensive say -- funding past, the part but than the for to is, foresee the market, also our there have the it's which we have the proven keep funding slower time deposit so a access still then needs more don't our mean, to accessible it's significant we account, being And funding on first to concern markets in a pressure with for very a we the the We And concern still funding for business. circumstance. terms future. deposit, in us, have part demand for pressure not moving of checking a of the format it's but the NIMs, of

Carlos Gomez

Okay, you. Thank that's clear.

Operator

much. very you Thank

Yui line question Mr. Please comes Morgan. from JP open. Fernandez from your go sir, ahead is Our next

Yui Fernandez

Thank the the stabilization you a we all and of regarding regarding quick saw clients, for and very had clients. thank I you congrats on number ROE. strong loyal and opportunity digital clients some the one

goes understand Are Q So an clients? slow this more a so Q, not on competition down. that's I funding, just you seeing the versus is growth is year, to Or like like seasonal just first that the would view funding totally know this follow-up very your like level, first deposits XX% do first I mouth, high one. your is for of the positive see the our for around you they like decrease And the were the total back because in know world, the this deposits. them when although regarding to but demand still issue they total how at Santander deposits? are are you don't right, still, they of thing And historical they go quarter, XX%

like all very of we Chile, withdrawing for because so do new is know, this deposits, hear how long this? know, believe you again sorry year, kind like has quickly a banks. demand think with and shift to two don't pension We on how thoughts So normalized, like thing want good been shrink, on quick could in pension -- your right? a assuming I see, deposits were one, the at more. you rates just here may demand seven Like like And tailwind a deposits

Emiliano Muratore

Thank you.

months in down regarding clients there's various the factors, and the so I think always a one slow Okay, summer bit. seasonality is things

always is, some a factor trying affected boost in the changes second disruption always our that bit think was or upgrading did app do short-term. cyber we of The very we're I site as there security and and little there, to we

of but are it Our I and which And of true we on growth things momentary it's there competition, digital the more the a there's NPS, I definitely clients, now was that back and saw good platforms. is third, think lot track. think

we any in still to should we're client client recover. think growth, start case, digital especially leading growth a see I

new to As security the format new features. the as you know, and people adjust cyber

So and we're that recovering. seeing already April in March

the that be to the think through like Life and getting going products game With to I another momentum that's to well. continues especially changer what life slowly that's -- going the gain new

new going I we're to think start some next launching be more if things So overall competition, going there's to in quarters. few the

All growth. again client give should of that the to boost

move It there still basically slight in a already a pickup. in we of month the going January the was is and March, especially that's think forward side. digital dip, after February, to So

Claudio Soto

going of the did business I all we transactional significant And first, with pension to mix let's that a all regarding fiscal fund deposits the forward, basket company. improvement in from has say think, or the hubs. Also mention the the the withdrawals the trends Board apart and for

market goes of loss middle evolution that on he Slide the you different. XX, the if individual could to and there corporate part, quite part, So, is SCIB the see retail

deposits are loyalty still reasonable the, of, we more part with financial apart relationship corporate. the the positive let's kind business, because a related say their system and come and also Basically that's some a mean forward. going pool had into to we from institutional It's time that before and funds, go to into dimension from coming still optimization to is keeping we So and significant back. time pension demand important now there transactional of the of come the I and go the significant between that your investors, of deposits deposits coming say also demand strong their mix not deposits [indiscernible] to also that's margins going I let's from years bank are mean

higher for it deposit stay So than that the of share long-term -- a past. the the demand will as effect, was it's I total we the -- for one in us where think deposits

but and in usage question, opportunity maybe the going a and headwind the the shift that Rates households X%, don't faster especially we a see so put going we're in shift. to of say, the already will to demand from a also we opportunity big segment, you part in shift cost see like forward deposit, the are don't passed. what has overall part some then when retail corporate the time liquidity cost on deposit already let's So the growth and -- of see at good your significant

deposit months. concerned rapid overall mix or an And from are a in time not next base to of sharp so we deposits shift having demand during the

Yui Fernandez

coming down, congrats on And that's the very you painful. was they final That bringing be would also the and should much. release, right. release. demand inflation concern deposits it very comment here, down guys, new was new And are also like Thank good, typically, the coming my formations

Emiliano Muratore

for you Yui. your thank Okay, comments,

Operator

very you much. Thank

comes Please from Scotiabank. from Our next question go Recalde Mr. ahead, Juan sir.

Juan Recalde

what question. growth is around for this, is and you expectation is thank the quarter? income year-on-year very XX% question growth regarding taking and we XXXX? of sustainable Hi, was fee growth, The for XXXX strong fee saw for I income your how my wondering in

Emiliano Muratore

grow Yes, the the on for had, seen fees we've of our fee of I the and clients of Okay. board, the positive results across been probably transactionality news so think, in rest more of one growth. effects better And think in year. growth I and have the good all the parts we've that's

to the fees, we year and in in absorb As interchange billion. as this a new that's side remember and in now April, management MXNXX that the to we have commentary going script, begin beginning to us mentioned I the cost

the overall should that fees ongoing non-credit related transactionality, continue basically continue good April so growth lower trends a should benefit this, we of a bit. will will have of for fee especially So the a through slight though other increase through -- not Getnet, to even probably saw in have the probably products, the card because of which okay. year, in very December, though first because quarter cards, The the growth even so it

year the probably will billion, absorb probably we end X% by the teens, push so growth come And XX% down year, next this the fees absorbed the to around fees. as we growth MXNXX these or growth, continue once have because this X%. should in transactionality back was go So should the in the of to we that client

then So one-off we kind a and this continue absorbed should this of is growing. like that year we

them even other treasury the part -- we income treasury that pressure mentioned, thing So as is in are though the the margins clear. some have fee a in I client quarter was quite less is loss there treasury we or think like repeating we should the which loss. very first a Non-client non-client, or last was not have be more MXNXX the positive treasury And year. good billion,

that and add mean treasury, I XX% you grow fees and should the basically around year. interest this non-net income So when that's

So have this I year. of think that, positives the we that's one

our the we well. grow adopt through fee, year the also though treasury should well should and that have products interchange even the continue So rest next to fee should and year good as have a of

Juan Recalde

for the That's very you clear. comments. Thank

Operator

very you much. Thank

I out read them text will have individually. We three received questions.

risk regulatory potential to flag for bank convention? is, to constitutional one any first the pertaining the So

Claudio Soto

of implications in general. the convention, constitutional defining and and The [indiscernible] working the rules term and are in hard to right for industry list political system. do now. is social reduced constitutional is system the the What of specific then right foresee final the Well, it judiciary financial political the of the is

on to hard specific it's impact So right the too the now think financial industry.

debt But other to is the that Regarding regulation a many repository to already battle Congress it's been being one on is in congress. of have years the of that going it -- regulation Chile. discussed something for discussed in type now things has consolidated is right that with fintech regulations, now is another that

Operator

considering Hey, think that. XXXX, current see XX% thank economic slowdown, you next in loan X% question is retail do the context? in The for growth feasible loan much Do segment? you this of text in evolving how very you especially to growth the

Emiliano Muratore

hi. Yes,

guidance. growth was forecast loan I think too really changed didn't What we and actually up in our around went in so is up, inflation much really the part because [indiscernible] almost loan nominal went zero. the previous growth inflation so so really that's denominated US, change real the versus

in Difficulty] loan of the auto loans, you recent translation originations, interesting still really the [Technical is inflation. new except is push the loans stalled kind consumer fallen. through we're for the activity higher there not seeing the will loans mortgage gain to know, US, just okay, And originations basically most So -- have in of rest numbers some terrific

Operator

again. Okay, next text inflation very is much. The question about you thank

good So be how you. delinquency is sense much market inflation point to it consumption, too margins, inflation that higher in begins must cetera? lower there the affect is customers’ higher Thank et much for where even a

Emiliano Muratore

soon. the that the economy ask, also also the I from in supply change situation and the and think we GDP yes are from manageable all coming that those levels inflation not away so have will in and clients by converse. pressures also doing coming the the still our disruptions to -- forecast a to all the inflation Bank in inflation of fade trust at the should the where still self have, question we by converging in and away helping future, now. their difficult Ukraine let's inflation for maybe But are help should That's important from to exist bit one say our we work abroad, Central a

Operator

very thank you much. Okay,

final please question open an analyst. microphone, ahead, go from We have individual sir. Mike a voice George the will is This

we the have believe further to back at pass remarks. this I'll And I line team no questions. Okay. the management for point, the concluding

Robert Moreno

much Michael. call. you, soon thank to you with participate to very in time Thank for you speaking forward taking the look all Okay, today's conference Goodbye. again. We

Operator

This our Bye-bye. concludes the all great call have much. weekend. Thank a and you you today, very for Thank now we’ll closing lines. be

Banco Santander-Chile (BSAC) 30 Apr 222022 Q1 Earnings call transcript