BSANTANDER.SN - Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Banco Santander-Chile 3Q '22 Results Conference Call on the 28th of October 2022. [Operator Instructions] The format of today's 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 the line to Mr. Emiliano Muratore, the CFO of Banco Santander-Chile. Please go ahead, sir.

Emiliano Muratore

everyone. morning, Good Santander-Chile's call. Banco XXXX webcast results Welcome third conference and to quarter This joined and and Moreno, CFO, is Muratore, Emiliano I'm Chief and of our Managing Head today Investor Soto Relations; Claudio Economist. Director Robert by you call. attending conference Thank for today's achieve continued ROE quarter high results in solid financial performance. The of to the year this bank strong has with and third

to Our new the growth continued great forward. In monetary clients, quarter, Chile successful Central tighten opportunity digital of strategy and customer-oriented product indicating offerings continues to Bank the attract policy. going also

We giving impact more begin, analysis this X. to on detailed will Claudio Slide To on update give invite will margins. the a be beginning of macro us an have the on I scenario Soto our

Claudio Soto

you, Thank Emiliano.

second monthly grew the have As knows and will quarter. print been year-over-year expected. expected that, local since Activity more has the X% some next economy negative. been be Despite slowing than sectors resilient the down

figure was Inflation September's still of during widening that economy be will terms our that, to account has relevant and cash from for shrinking to signs a shown current demand we be will context a result, line job that trend. estimate weakened forecast historical the the expectation of at the In elevated high. will investment contracts the low global external by rates. with affected remains prospects start to In and been growth CPI with of following October's X.X%. the Because subdued. of should suffer which XXXX, but creation has a turn, have GDP close a XXXX turn, back has high slowing in deficit, transfers patterns funds up demand year see XXXX. away we contraction remain minus trade stop will In pension recovery some market been of interest would have in have in margin. this As domestic contraction low domestic sector All-in-all, growth. falling. down. month labor draining we the in liquidity Excess withdrawals revised The X.XX%. as The and

almost However, will above in to a inflation year the and low We close from that following month, should moderation and it in a Bank gradual the due weak estimate the what commodity The will Central year with see next cycle fall XX.X% a the to monetary economy. at prices announced rate has we X%. likely that policy has concluded hiking scenario, XX.XX%. most

soon December hold begin remain policy We to expect the meeting. generating meeting. during rates unleashing recycling the as will as month decide on they're Board may The

likely around monetary they year, revenues will and fall it The back April's a GDP. there GDP of be meeting. Although invest is of more a We in and XX% gross start X%. XXXX will rate to expenditure. at improved has amid the balance surplus will about cutting fiscal fall fiscal of X.X% at This strong sharp policy estimate debt

of protecting autonomous uncertainty the establishing constitution degrees and rejection constitutional process. will now, different process last building human bodies eventful there's a state, and are on climbing on two following need ratifying this the Until to a stronger for there borders Central debt the of the a new welfare including Constitution to tax, expenditure gross by consensus how most forces new with of high rights notably the XX% expansion agreement year continue Next convention property with After an quarters. the new of Political GDP. Bank. during mild be political a remains of up driven certain state, the September.

narrowed scope Congress sent amendments in should been has The soon. the be and Congress, to subjected terms been has the to reform agenda, legislative down. In of its tax pension important reform

Emiliano Muratore

Claudio. you, Thank

the Year-to-date X Slide to financial period increase performance. totaled Ch$XXX net of year. bank's XX% We on will same to vessels now last compared move begin the income to an billion our discussing

XX.X%. on results, equity these return average year-to-date our reached With

the Our inflation names This the net rates due in income was shareholders decelerated X% to year-over-year reached decreasing fall as and in third to mainly and quarter to quarter Ch$XXX lower increasing interest continue XX% rise. q-over-q. billion,

The demand NII. mix a time in shift the our a key this impact liquidity the is show positive banking results quarter-on-quarter sustainable we results These from X, inflation down deposits. retail and as the XX% is term XX.X%, clear very deposits and and and of was net a growth despite That basis, a from show and of funding business be individuals view segment this offset product than to the our more from client from clients the from in single XX, the As increased income our by trends important we impact long move of therefore contribution X.X% Slide X.X% presents from segment broken banking. On our higher segment. driven our has Q-on-Q. business which clients can retail results On our net offset grew by this decline segments in continues Slide year-over-year non-NII the client rise to that in net cost as an contribution increased excludes It the factor, note the segment revenues strong SMEs. to largest segments. drive of away in The growth. segments results from rise in to XX% on year-to-date of business. results includes from results the The usage XX%

clients, that and our XX.X% year-over-year. interaction or that As can and minimum are at growing growing a impressive of an observed this balance average are X.X% be the year-over-year, clients levels active checking left base account customer on have our slide is individual

XX% SME active Our SME is loyal X.X% client base have checking grown clients favorably in account year-over-year. XX%, the with and evolving also up clients segment clients are increasing

affairs of a NPS some following dip implemented our necessary seen be this beginning score positive NPS one cybersecurity slight After the protection, the net Slide is in to client year rise figure. can changes on rebounded has numbers promoter As XX, for improve reason at the contact by in our platforms, in digital the to our the one XX, app, banking Chilean Life as highly of into years. our Slide market best as shown continue be work shine as customers. our our introduced valued innovations and and to recent on Santander continues Moreover, center website,

As of September, was over clients million X and growing this platform year-over-year. had XX%

deposited platform. such Santander unbanked clients we and way helped reaching in gained $XXX with is the As continues can account. account. at client graph, On June are monetized show This we Slide similar have also open pace. by Life really at increasing the expand have Superdigital for high the year-over-year. of low a XX% income checking with be cost product from fee. first clients rapidly Cornershop as many in launched Santander bank who seen been year-over-year seek this a to began clients. to life's XXXX, base XXX% additional Demand Life XXXX, from platform competing attracting offering company fully $X a in gross XXX% alliances digitally XXXX aimed prepaid clients also over being has once program Santander clients. this grown a and the million ability Life started the success traction clients we new as XX, digital on Building growth how Uber at surpassing XXX,XXX XX.X% remain amount in times checking an Superdigital life digital clients, the by deposits Superdigital's rapid a account

piggy Pyme that we SME recent are and no stated to a previous our client platforms show our the been offering platform plan digital expand financial Slide most initiatives Prospera before, reach SME accelerating. As entrepreneurs, of On is also successful a SMEs growth to our for life and reasonably banking have among two Life. base client history. we presence clients with micro Cuenta XX, account Both checking new by every priced on way

base The is our driver Getnet. other of important client SME

has after already shown XX% of of to channels. monetize XXX reached year-to-date. This been over on Getnet has is the POSs is sold. Ch$XX are clients a year in of currently POSs billion just processing quick market monthly operations. Getnet billion Slide Furthermore, and share distribution to clients or turning As target or generating product over XXX,XXX Getnet profit also and a sales. the Getnet fees a XX% with SMEs of sold XX% banks XX.

since in as Chile again income increase and the the see loan continued fourth Green banking activities spreads disbursed The our loans positive the once top involvement Moving on met on X% have currently than financing sustainable results by such financing a the also With reach market X.X% our importation Non-lending year. on this in led of accumulated was non-lending billion Chile XX.X% target advancing dealer operations XXXX. in and XX.X% will and transportation of XX% our by to Mercedes Slide shown on XX, we The increased in the on XX% million with of Santander Slide top this and The cash income of largest year sources Employers also electric segment's a Green awarded this system. are XX increased in target A achieving were energy have Q-on-Q. solar Net management and XX% the year-on-year financing, and for and for XX.X% middle here public the end. In positive due driven we X,XXX been on by or of percentage to deposits focus commitments this Chile's year-on-year fees by Q-on-Q, but XXXX, behalf plants increasing in activities income this grew spreads the with we total XX also Q-on-Q and In year-over-year an investment the positions gender XX% year-over-year. to XX. XXXX. reaching over of in Award special buses to quarter as increase treasury. renewable is can as considering interest coming as in an we X.X% to strong year-end, impressive committed in corporate total and of This In XX.X% a impressive and year women XX% on Green responsible Employer XX% of XXX pay our results Slide treasury with new loans - more gap quite a has this growth led year, from XX% and already XX% CIV segment. by income quarter. of net managerial Institute. is banking at we revenues and XX.

of trends X.X% Approximately interesting continued should loans foreign XX% XX% currency denominated peso loans Chilean in denominated denominated our Q-on-Q growth, Q-on-Q dollars auto balance mortgages we of against depreciation in and and the high we to U.S. results. commercial conversion Moving lifestyles by loans detailing in the inflation commercial loan produced gains our fourth some loans Q-over-Q. yielding is the a due conversion year-over-year The X.X% X.X%. Q-on-Q currency, start to seeing with of XX, is denominated next mainly in credit to portfolio increased which mainly in On and are for driver which to on mainly plus section loans. Slide individuals foreign as the around Loans growth and card to loans U.S. sheet and in growth and next which year year-over-year. in loans the XX.X% grew X.X% dollar levels. loans are High the our quarter gains produced of X% grow by be returned was and pre-pandemic quarter On which in is by X.X% and

Q-over-Q in loans our clients middle money of bearing short-term corporate quarter the their X.X in for we we period decreases a rates form as evolution short but products. and of to deposits and same XX, During to deposits the see in Slide our started financing Total bridge other deposits saw grew CIB in market, the loans time X% segment increased in grew last or Q-over-Q. On X.X increase funding the have the two as time mix. show non-interest rise. X.X% the funding After year-over-year, strong years, shifting loans

continues we transferred our time to our the funding go eventually loan duration have first. given costs expect XX.X% to higher continue shift, that up. a With as average than These policy to go result, will liabilities be Q-over-Q. costs rise will assets, rate rates funding book monetary As up our short -- to interest-bearing increased this deposits a shorter

rate, a in led pressuring the and the our and funding. XQ, income income shift quarter margins mainly strong our The line volumes can the quarter Slide on the have inflation see affecting inflation our from Moving net business in was gap due to earning our of our XX, XXX U.S. how X.X% X.X% X% general movements spread in we remained Q-on-Q from from an segments policy to been includes rose basis interest X.X%, rates reached with the seen of deceleration in increase the monetary and third variation the the which quarter. asset to included Net over in our This mix. cost liquidity. of yield. XX% effects to average coupled decrease -- interest with some points earned interest increase in positive In in the

Here and higher Considering year-to-date lower impact the the NIM's. the above, all rates was inflation over it the and of quarter is in evident the NIM X% had NIM reached X.X%. our

year. quarter, insights forecasting NIM the for reach X.X% our in expect for decline and we are we further into Slide the further year. give For NIM a the fourth full margins we to next On XX,

points. falls point every an the points XX monetary average inflation, basis in in our And falls For and of average our rise period. by every for NIM basis point decline XXX policy basis a XX-month XX NIM XXX basis by rate,

base X.X XXXX and our between from year tight margins rate end levels to XXXX greater us by in rising control a the inflation These XXXX monetary X.X segments in Our generation reach of this quarter X%, NIMs case U.S. ROEs to XX% and maintaining below should guidance business is cost the an XXXX starting first in for and base of our lead average and scenario, in achieve XXXX. XXXX strong back scenario of Under policy level in this the be by unchanged. and X.X. compensated than lower XX% should which revenue will

Moving on weaker This rise mainly mainly a X.X% to has on ratio already in and to the clients in NPL affected to quarter returning to levels, liquidity related Slide asset the pandemic XX, impaired the pre-pandemic. levels economy. who is quality household gradually are post

rate. these performing the clients non state at aid have become fund end greater pension withdrawals, of With and loans a

X.X% which reversals in at recognized has important loan and voluntary been renegotiated XXX% quarter XXXX 'XX clients we have 'XX to that impaired that its in second which new decreased 'XX, of The the been in note becoming it However, includes of rate XQ NPLs impaired and from of is coverage reached and that loans reflecting as ratio, the plus X.X% to the there are remained provisions NPLs September subdued. no XQ XXXX.

this a our with positive cost credit As asset quality we led can in year. these see of XX, indicators on X.X% overall Slide of line to guidance for

this of assigned During the of Board voluntary expected to decided during loan the new have the standardized of voluntary models regulation of extended to the the commencing book. quarter, the slowdown the Ch$XX Also, in consultation provisions billion on loans. draft the period quarter, consumer expected establish light been consumer economy been of The for provisioning to year-end. our regulator Most in new XXXX. for has the CMS provisions published

mainly in Ch$XXX provisions our Ch$XXX billion card initial portfolios. is in and Our lending estimate, increase an of outer and credit billion between

new total we Q-over-Q showing move to XXXX. On XQ, this to increased to Fee client of XX.X% XXXX. activity base with trends income all as These our more by client XX.X%, commissions previous previously the in with growth permitted year-over-year XX.X% continue non-NII X.X% comply Slide regulation. and to sources, expect quarter-over-quarter, interest generated year-over-year exceptional income on revenue we and and products. non-net provisions driven from which described, trends, voluntary We are continue expanded use XX, and higher growth

client to item, usage. clearly we As In growth the this strength of strong we platforms. continue digital see and can line see client our greater item

its increasing control the below shown and in X% efforts quarter XX, also the Operating costs. productivity Slide X.X% year-over-year to on bank's to increased Q-over-Q third see and well decreased we continue As can expenses with because XXXX. years technology to trends. The bank And the these to million $XXX for XXXX plan investment in expecting ahead costs levels XXXX. we're inflation of investments, grow inflation below continues significantly

that XX XX, more client Slide of process we closed the have of branch As a This and our with new shown continues network. in opened year, experience, optimizing are branches, Workcafes its only efficient. major on but have improvement bank not XX% also are the

volumes these XX.X% As sale, digital of our point rising increasing initiatives, X% significantly year-over-year. coupled strategy, result productivity is with per for a of volumes employee and increasing with

we to quarter, up at of third capital June. in ratio Slide of ratios. X.X% on core XX.X% a end XX, the equity take look the our bank reported Moving the from a At

which X.X% in Our the in shareholder's equity increase ratios. a quarter, increased resulted in basis XX point our capital

track somewhere dividend of a are our XX% on payout XX% year to XX.X%. XXXX core We of guidance finish maintaining a with this And we and of ratio between are of capital earnings. around

we an XXXX. guidance presentation XXXX XX, for our achieving on guidance fulfill this initial our Slide of Finally conclude for for should fulfilled we XX%. We guidance with ROE XXXX

our of to the uptick strong rate increase average monetary of scenario of client and of cost considering we X.X% answer slight any have. you case loan a mid-single-digit solid X% of this in results, a should risk XX%, rising growth in X.X%. policy may on With and and of non-NII total presentation We inflation XXXX, return base costs. see With X.X% GDP XX% my we For NIM a and falling gladly XX% XX%. achieve finish should a I between questions low an will equity now this very

Operator

Thank [Operator much. you very much Thank for you Instructions] very presentation the

from Tito first Please from ahead, comes Sachs. Labarta Goldman caller sir. question go Mr. Our

Your line is open.

Tito Labarta

you thank good risks. Hi, taking of I the guess asset question. my cost and morning, on My call for Emiliano Robert, and quality question

few deteriorated a remains a I your mean, things low. mentioned risk fairly have of NPLs that bit You cost as

going You're into next just of kind year.

little mentioned You in for up go quantify more With can much can cost, asset other NPLs do, from provisions to expect in go need And you of you. risk bit slight here significant more your impact additional if the have year any deteriorating quality here? there's uptick. the I and any can particularly that could how significant from but economy? think a And the risk? next deterioration you you some economy how cost do on slowing Thank up a much some help guidance

Robert Moreno

Okay, Tito hello.

we've know you have the What cetera. withdrawals et no in is the the fund pension NPLs basically that been you - liquidity quarter, rising. So as said seen - excess more

fallen before who the okay. these even weakness retail people I some people majority say, in especially obviously of are into would And But NPL okay. some had pandemic, shown have the clients, back

our NPLs, downwards. loans, trending still are if our So why which been any loans, basically, have you refinanced. have loans that's Those been impaired at look impaired that plus

levels. people already that or example, two its But central the but slipping three depth as So levels, the are okay, XX%. the report impaired are it's that of household for are just or going is billion falling why who have last finances. last CLPXXX because now, actually to on Overall, of refinance basically, And debt coverage is you can servicing during people years, And saw, people our reduced remains bank three before the we that fallen the On card levels into marked credit levels. you we household years, it's NPLs. see provisions grow entering are general impaired new to high. published around some in their portfolio debt status, have and in amount like still And as voluntary okay. two or haven't, top begin our still XXXX/XXXX below, sheet. balance And

to and XXXX we for But X%, impaired think given economy NPLs next cost expecting but use higher where fall and start in probably voluntary still year. NPLs they X% know, levels, is this go translate X%, less credit, X%, go of were not upward provisions, continue coverage So to to And with into an to do should up overall X.X% or back or high more September eventually, the slightly you now, we loans should a to trend. to going expect our that of okay. than

huge is it's we there some that absolutely asset pressure threat. say where I quality. given manageable But something entering the cycle, think on So another is we're still

regulator a for requirement loans. thing, provisioning model published standardized provisioning as consultation, The that's consumer for mentioned, we there's new new being other discussed. consumer The for a loans

change probably year to end the beginning we the comments. this discuss of have present the end of of until the our less the be meet because billion the discussed. implemented for we're will But this voluntary and and at will it's could to use allowed somewhere loans, we billion being have CLPXXX this. still quarter, and impact okay, quarter provisions consumer stock first think to second more we We that this And estimate to of provisions And increase CLPXXX signifies okay. or somewhere the will between

shouldn't it an to we'll our might it of But So have have and cost provisions. the on of but on see in risk. end the an impact impact the have this it shouldn't have size voluntary

we quarter, the already for In provisions voluntary some mainly third loan. this quarter, Okay. set quarter, aside consumer

situation of of will of see next be So absolutely kind has the we of risk as today, rise that all could manageable the that said weaker. cost year Board risk also been of the knowing proactive, around a that, But the year. cost still but with X%, little X.X% next bit, a

Tito Labarta

think coverage just Great, longer coverage one the I color. get X% Maybe rise the thanks maybe that's mentioned. I down? for about ratio the closer cost sort term mean, should still if I Should NPLs that that to or would to going do of you I normalize is What don't risk know level very coverage ratio to if of your forward? like kind you mean more and there either to high. get Robert, come follow-up - that back know be helpful continue

Robert Moreno

that, coverage XX% think I of I use around basically, into have excluding falling that I lot that have We voluntary. the are them. forecasting around coverage Yes, voluntary, so to still we think we're remember would - or XX%, the are come of they provisions. don't NPL stock XXX not of the down. said, of of expect use the collateral, our already ratio loss as the either includes provisions things And a But good

or already will going ratio or have collateral have that things because So slowly entering to a the I to that's we NPL. the think are be expect partly down, begin that some coverage of why provisioned go

down. come So coverage should the ratio effectively,

Before was the XXX. pandemic it around

XXX voluntary provisions I it's see okay. easy to And the we So long the then provisions, is have so it okay. an term voluntary XXX like way what see plus happens probably with to

Tito Labarta

No Thanks great. a perfect, lot, Robert.

Operator

much. very you Thank

question Garcia from Please Mr. comes next Suisse. from Alonso Our ahead. go Credit

Your line is open.

Alonso Garcia

good follow is morning, the My question up quality. a first question. my Hi, on everyone. taking for you Thank

You're mentioning, the X% back to normalization NPL in can metrics. go tire. recycled the Basically, NPL a

Just you wanted what real but the Or to segment? you any some color have news, come main we get going maybe market from mainly of industries on, concerned, side in so. for the been estate an the commercial about the concerns the bankrupt that group, and the be companies in frequently construction not or mainly in segment, do have would of kind concerned increase drivers think digital or reading versions can on very consumer the

provide attractive terms inflation segment thing I are provide year? this to in could you clients. growth look Thank second more, of Which demand? Life, next but very color grow more not with Santander loan next pretty And expect the defensive portfolio appetite on you segment. sure the know in much NPL's your in you. more or same case what's by color how And grow much to appetite you of nice of line again, the segment year growth by presenting grow in look again, segments environment, some on It's showing should X%. the which So my for don't could you're how segments? In year? commercial case But, in question to some consumer, more have on next this is you if

Emiliano Muratore

Okay.

So you higher and begin probably the downturn, like of to down, traditional quality, rise. will in to out economy going be rates, coming to kind asset is know, this employment, a going turn

grow there out the the will The high end this hasn't we've that higher in major lending, we people be good the question So that, end starting said, all to of kind pressure it's more asset there's before, will news consumer as consumer you factor other that see income. low in - of credit because I on the travel, that's middle grown. are are be don't think still probably gotten we your cars, to And relates And card fact is of a going to some probably know, that loans really hotels, the quality, that more. consumer side.

So overall, to voluntary portfolio I we're why in there normal of also consumer the the more XXX%. that think, might consumer coverage deterioration is following and cycle. be some sending around But that's provisions

this we've very going another be we're the downturn. thing. of with the traditional But that's before And is coverage a So the of then highest other to some levels ones. entering any corporates the positions segments, provision went large either say, during got other in and very cycle, we what And would pandemic, I are rid portfolio more had but it weaker of Chile healthy. case-by-case highest that the or also through for

Santander saw, SMEs, cycle. obviously And very I growing no, to you more have aggressive we presentation, pressure not they're banking being and well, really which saw very going low we're more there. you to All basically, it's be would you why and doing is the the know, more but NPL is income, loans clients in non-lending should they some generating year, focus And be the then - there good doing the well, the that there is it's good are segment. spread, you next well, some Life generating, say a lending. very is the too key that's Like retail the some despite, you know, then the they're of growing asset quality a bit deposit but little is see driver a more of non-lending activities. key a said, there on new the And And some, portfolio in as of the a portfolio, also non-lending. So shape. pressure probably elastic very SME than

that the I sectors. This construction, with building entering say, been quality, structure. And high SMEs, much bit. in a has not obviously the cycle a asset and with is going portfolio in would we're that news once terms other of again, on been suffering has sector is a very good So rates. the consumer sector but One there

construction, believe. We have ratio the around million NPL X%, I $XXX is in

I our it's in the be there, provisions I so might are quarter. good in would there the quality. but mentioned risk factored more previous general, And or again, new cost into it's clients, less once There say some of

are feel it's threat So be that and we it's not a to to that big us. something going overexposed

Claudio Soto

Hello Alonso.

Regarding retail maybe partially question said, especially but volumes the an I above as should nominal mean, books life. long like in it's would growth this base that next the strongly that for And tend been the grow mean, say inflationary your our increase grow I loan true average. I environment, in year, in you then customer consumer it's to because, growing about through not our and because has appetite, part,

also aggressive, that point that book demand start low tailwind a advantage more a the are by will we households clients being So, age we leverage now them we in lot cycle, you assess advantage we from from new order - for that their when and have also and by where of the and have tend have government the the feel not a especially to some take consumer great from so, a quality but and more for they solutions credit -- to lot and be very will credit, offer households that information be time taken the will disagreeing the of the in and of liquidity taking of comfortable funds so pension of a the to to leverage now.

that In terms rates also there, overall to nothing in the the or all portfolio see foresee to rest the real Remember of for with see activity it's will the Getnet our book portfolio next or have year, almost basically in and real of that be especially And for through book a for high we you nominal the the lending of more so in growth, have client see mortgages, When on the real as growing SMEs are segments on the and during working even going downward of pressure situation with lent and and And then, be we in loan value capital growing SMEs go estate the going all growth is you with for level are planning not the the time next long we book will inflation growth. grow that support but years the or we loan don't mortgages. U.S. almost so, depends of seen lending. level is related was do pandemic fall. terms upwards growth that of but because the nothing. they away the don't sector SMEs in should the government the high basically there more a of support that terms like growth expect definitely the trade we we commercial we dynamics corporates, solutions [indiscernible] we

in seeing for not CapEx We big are plan our clients.

emissions. next do big expecting we not as a like the their lower there, are as to emissions to have them I book. that. are across the investments I'm green see zero big from the commercial opportunity So, to to transition of advantage corporates or our take for part are mean, group the year. And of opportunity project, for And -- or transition we we finance future a we which all seeing business clients we board

Alonso Garcia

you very Thank much. Great.

Operator

Mora Mr. question ahead, Thank much. Daniel from next Credicorp you Please comes from sir. And go Capital. very

line Your open. is

Daniel Mora

a and I for of morning, thank good the you Hi, questions. presentation. have couple

NIM. The first one is regarding

levels with you will one or see XX% figure? Santander the capital to and contraction normalization strategy see XX% do and you is know of feel the to year. looking negative margins. to so what would another coming like financial for we considering is one statements X% in from question. above derivatives. this the and of If next as target And guidance be also much. see for know comfortable related do would to or if of of would that the I are potential next the XXXX close Thank figure the this to above a hedge we is You this already use us rates. in gave the year set close the X.X% considering that to That know will the that I to second do the is increase like the XX%. mitigate accounting you first two that to like strategy company the year implement already impact year, you ratios, to or the inflation still I like in there hike present NIM

Emiliano Muratore

second say like in you XX.X% question. year a the with Hello ratio basis. would I loaded for Daniel, mean, thank is that starting by fully one target your of I one there, our city the the end

depending that might cushion of loan us XX.X% on that comfortable But the be area to want close and be the to feel buffer target or regulatory where we XX.X%, gave closer So that or growth the we enough the XX%, to to we XX%, have. to we be moment. is around minimums

commercial forward. presentation, to deposit commercial mix In mean, NIM terms as really pressure think that strategy its change first doing mean, well name from mean, in of Robert the showed going the even demand I we that clients in next really, NIM is the spreads. I all deposits I the time contradictory the

a or going and terms NIM. of the is tailwind the that markets So, ALM forward in support NIMs to

having our structural to in have on historical the side. We rates asset order UF negative strategy of in or have we the hiking to compensate the inflation on mismatch a sensitivity

this rates for historically has central pace sustain NIM, has interest to helped of next to adjustment a we're scenario. - us that what the kind last between bank the the the years. around a inflation year be proven of the and And that X% factor seeing few of is year, starting to compensating So mismatch

not is central is inflation downward. went high the to variables X.X. be be will so rate up that inflation XX, see third we might an Slide down had, year, And fourth lower as the and conversion went bank even to example, that pace And can two the when the inflation for You and basically first the the when will still X%. high quarter, rate go NIM NIM this on the last hiking rate for down this going quarter very quarter where of in big

want end XX the rates have rates rates some try the next when real give a like, where this the certain at central situation are inflation's. to between because is is for one forward, mismatch X%. to adjusting rhythm And double-digits of that year is have neutral is position mean, rate few the start bank the strategy So around - we you today real going quarter having the nominal X%. lower the the will if are I a frictions At for a months we are the next historical seeing pace what expectations real That's like to rate. hedge maximums, and inflation

we'll that the in for to the to same for adjust. face And the X.X adjustment back this is to which higher and real go So a quarters, until few XXXX expect low next Robert as situation next next for this NIM the imply the the NIMs rate And end by lower of then start like or mentioned, year, as NIM Chile. temporary monetary for two will quarters. we

Daniel Mora

Perfect, clear. thank very you much so

Operator

Thank you very much.

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

Ernesto Gabilondo

Thank questions. Robert. but you. been Hi, of I answered, couple questions have Most good morning Emiliano a my of and have

this effective tax It is on ending rate could inflation. around XX%. I of has believe your year The one benefiting first because been be

is we it guidance next on question your year. So about next how second for think my year? should Then

XX could below inflation. you're that to expecting mentioned non-credit revenue, to around by of have the higher but behave you also pressure XX% And offset NIM OpEx basis lower partially you're points, expecting which be So growth, around expected XX%? related is

next or implies ROE numbers I'm XX%. at your But So earnings year, relatively at for of flat when it contraction. of modest same the incorporating the an guidance time, getting

if So expecting year? check to just Thank you. terms you're is of double in what earnings that want next

Emiliano Muratore

so with XXXX okay, ROE. the

Robert Moreno

This is very message. short

seconds. line muted last the your for Emiliano, Mr. think I XX was

Thank So will Ernesto. you restart please for just don't very ahead. your you. mind, if That helpful answer. be Please go

Emiliano Muratore

hello. us, hear you Can

Robert Moreno

Can you us. hear

Ernesto Gabilondo

Yes.

Robert Moreno

so locked, heard question. the Yes, we computer yes. the Sorry,

is, Ernesto correct. you're is saying So what basically,

in higher the globally, income, in away, also GDP a living So tight in our which into very I think means falling, And reach up The means between you XX%, of that year, net which scenario an we'll obviously but non-lending bit, costs, now have, the non-lending far we're And activities should XXXX, focus control controlled dip a basically, year, said, as next this we paying Chilean be down, in but strong and we're that and a going good. slight risks is a a should range is are XX%, ROE, effectively margins, will go economy momentum. comes you which the very really rate know, important the And but showing that in uptick rate. inflation with okay. on only tax not tax recession, we income next know, be profitability. it's so basically, we to as

goes isn't lower around important. tax XX% effective rate rate, the between inflation, X% rate XX%. XX% fall effective back go should and the and pretax, we the And time tax okay. which in is if inflation, year, next So be directly go we line ever the somewhere as But should the be tax back by, with to there,

Ernesto Gabilondo

very much, Robert. No Thank super careful. you

Operator

you very thank much. Okay,

sir. Our comes Jason, go Please, is open. Mollin Jason line Mr. today for from final ahead, question from Scotiabank. your

Jason Mollin

wanted inflation. I and interest about Hi, to to ask your the sensitivity rates of results

sensitivity to if you just a.m. was XX us I if thought the give rates till maybe just where time? saw us particularly and bit inflation And logged cycle. talk the to will start if start something we But time where Chile rates a give the are increase? on Because the a relative changed results think an can can there about pain and decline rates you of benefit update decline, the view rates little I and I as If to are, we Thanks. in you can I in. as

Emiliano Muratore

able see Hello, you presentation? the Are Jason. to

Jason Mollin

logging. I'm can. I Yes,

Emiliano Muratore

XX seeing the you now? Slide Are

Jason Mollin

on one second, Hold yes.

Emiliano Muratore

that and the X.X% case inflation is average you rates for metrics we the inflation X.X%. policy the for Okay the so, basically, around like the base year NIM to next and sensitivity to there can there also like be our monetary interest monetary policy put to the be the see like around average for to

the the start central when bank rates normalizing expect around year the central markets you X.X% first for expect on progresses, the either territory X% mentioning quarter we or when that adjusting quarters, more, double-digits what or we territory quarter year the conversion X%. below the NIM likely, takes to and NIM at market start close NIM. inflation the that's year break that basically will NIM and year, single-digit to at were the like the NIM down you into If still on is to to can more the you that we'll the bank if and have rates higher quarter the will second Because rates you the on the next want, And from first and X%. expansion start see inflation client's

like of ability change seeing year. that demand we rates the are to the last opportunities the that the positive trends this deposits of the deposits environment year are this very pricing expect the We in vanish, pressure mix seeing that we and and like very starting higher and next between have a pricing in headwind in mix terms is that part deposits time to discipline

And see name clients a the tailwind so, year. as name we next for total in

Jason Mollin

that's you great. I Thank That's much. at the very you. now Thank presentation looking helpful. am

Emiliano Muratore

welcome. You're

Operator

this Maybe anyone have we for another Okay, additional thank questions or you point. at we'll no any looks very give much. questions. to like It further else start so for minute

back the the concluding line team for have no management I'll we remarks. pass like to further questions. looks Okay, the

Robert Moreno

So thank taking time speaking for in We much with to today's you look call. the forward soon. participate very you to all

Emiliano Muratore

Thank you.

Operator

you. Thank you lines. the This we'll now Thank very all much. concludes call today's be closing

Banco Santander-Chile (BSAC) 28 Oct 222022 Q3 Earnings call transcript