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Banco Santander Chile (BSAC)
NYSE:BSAC
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Banco Santander Chile
(NYSE:BSAC)76Outperform
Banco Santander Chile (BSAC) vs. S&P 500 (SPY)
Market Cap
$10.30B
Dividend Yield2.59%
Average Volume (3M)271.36K
Price to Earnings (P/E)11.4
Beta (1Y)0.77
Revenue Growth-22.63%
EPS Growth32.31%
CountryUS
Employees9,229
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)1.92
Shares Outstanding471,115,330
10 Day Avg. Volume325,789
30 Day Avg. Volume271,362
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)N/A
Price to Sales (P/S)23.52
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside-3.98% Downside
Rating ConsensusHold
Number of Analyst Covering1
Banco Santander Chile Business Overview & Revenue Model
Company DescriptionBanco Santander Chile (BSAC) is one of the leading financial institutions in Chile, operating primarily in the banking sector. It offers a wide range of financial products and services, including personal and commercial banking, mortgage loans, credit cards, asset management, and insurance. The bank serves individual customers, small to medium-sized enterprises (SMEs), and large corporations, providing tailored solutions to meet the diverse financial needs of its clients. As part of the global Santander Group, Banco Santander Chile benefits from international expertise and resources, enhancing its offerings in the local market.
How the Company Makes MoneyBanco Santander Chile generates revenue through a variety of streams, primarily focusing on interest income and fee-based services. Interest income is derived from the bank's lending activities, which include personal loans, mortgages, and commercial loans to businesses. The bank charges interest on these loans, which constitutes a significant portion of its revenue. Additionally, Banco Santander Chile earns money through fees and commissions associated with its banking services, such as account maintenance, transaction fees, credit card fees, and investment product management. The bank also benefits from its insurance and asset management divisions, which provide additional revenue through premium collections and management fees. Strategic partnerships and collaborations within the Santander Group further enhance its capabilities and revenue potential.
Banco Santander Chile Financial Statement Overview
Summary
Banco Santander Chile demonstrates strong profitability and operational efficiency with stable margins. However, cash flow management remains a concern due to historical volatility and recent negative operating cash flows. The balance sheet is solid, but high liabilities require careful management to maintain financial stability.Income Statement
Banco Santander Chile shows consistent profitability with a strong gross profit margin and net profit margin over the years. Recent revenue growth, however, is volatile, with a significant drop in 2023 but a rebound in 2024. EBIT margins are robust, indicating operational efficiency, though EBITDA data is missing.75
Positive
Balance Sheet
The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio, improving from previous years. The equity ratio indicates a reasonable level of equity financing, supporting financial stability. However, the high total liabilities could pose risks if economic conditions worsen.70
Positive
Cash Flow
Cash flow from operations has fluctuated, with recent years showing negative operating cash flow, which is concerning. The free cash flow position has improved in 2023, but historical instability raises concerns about cash management. The absence of consistent free cash flow growth and operating cash flow to net income ratios limits a positive outlook.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.10T | 1.48T | 2.20T | 2.27T | 2.04T | Gross Profit |
| 2.10T | 1.91T | 2.20T | 2.27T | 2.04T | EBIT |
| 1.19T | 677.08B | 3.40T | 1.06T | 690.15B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 857.62B | 579.43B | 792.28B | 842.47B | 547.61B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.27T | 10.52T | 11.30T | 11.14T | 11.16T | Total Assets |
| 68.46T | 71.09T | 68.42T | 63.84T | 55.70T | Total Debt |
| 15.08T | 12.71T | 10.58T | 17.41T | 14.69T | Net Debt |
| 11.81T | 6.93T | 5.31T | 12.15T | 10.83T | Total Liabilities |
| 63.04T | 65.77T | 63.46T | 59.41T | 52.00T | Stockholders Equity |
| 4.29T | 5.19T | 4.85T | 4.33T | 3.62T |
| Cash Flow | Free Cash Flow | |||
| 374.67B | 1.19T | -472.28B | -673.95B | -905.78B | Operating Cash Flow |
| 482.39B | 1.32T | -358.99B | -587.18B | -819.99B | Investing Cash Flow |
| -106.58B | -117.85B | -94.60B | -91.77B | -70.11B | Financing Cash Flow |
| -372.85B | 2.95T | -384.32B | 238.66B | 102.09B |
Banco Santander Chile Technical Analysis
Positive
21.87
Price Trends
20.29
Positive
19.97
Positive
19.88
Positive
Market Momentum
0.43
Positive
56.90
Neutral
42.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSAC, the sentiment is Positive. The current price of 21.87 is below the 20-day moving average (MA) of 21.95, above the 50-day MA of 20.29, and above the 200-day MA of 19.88, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSAC.
Banco Santander Chile Risk Analysis
Banco Santander Chile disclosed 23 risk factors in its most recent earnings report. Banco Santander Chile reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Santander Chile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $47.35B | 7.03 | 19.38% | 3.10% | 1.25% | 20.03% | |
80 Outperform | $10.48B | 6.30 | 16.71% | 4.44% | 30.54% | 97.65% | |
76 Outperform | $10.30B | 11.40 | 19.98% | 2.59% | -22.63% | 32.31% | |
70 Outperform | $18.99B | 6.47 | 8.70% | 1.59% | -8.06% | 3.79% | |
70 Outperform | $10.06B | 6.36 | 14.80% | 8.30% | 10.45% | 8.04% | |
66 Neutral | $15.13B | ― | 11.19% | 5.06% | -3.94% | ― | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
BSAC
Banco Santander Chile
21.87
3.23
17.33%
BBD
Banco Bradesco SA
1.97
-0.67
-25.38%
BSBR
Banco Santander Brasil
4.39
-1.06
-19.45%
CIB
Bancolombia
40.70
10.52
34.86%
GGAL
Grupo Financiero Galicia SA
55.80
34.59
163.08%
ITUB
Itau Unibanco
5.47
-0.96
-14.93%
Banco Santander Chile Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -0.05% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
Banco Santander-Chile reported strong financial performance with significant growth in ROE, net income, and digital client base. The bank's sustainability achievements and efficient cost management are notable highlights. However, challenges remain in asset quality and loan growth, alongside potential external risks. Despite these challenges, the overall sentiment is positive, driven by strong financial results and strategic advancements.Highlights
Strong ROE and Net Income Growth
Banco Santander-Chile achieved a return on equity (ROE) of 23.1% in Q3 2024 and 18.2% year-to-date, surpassing guidance. Net income increased by 11.7% in the quarter and 82% year-on-year.
Impressive Performance in Dow Jones Sustainability Index
Banco Santander-Chile scored 80 points in the Dow Jones Sustainability Index, a 6-point increase from last year, ranking as the best Chilean bank and in the top 3% of banks worldwide.
Growth in Digital and Client Base
The bank's digital clients grew by 7% year-on-year to 2.1 million, while active clients increased by 12%. The Santander Life account grew over 7%, and the Más Lucas account reached 244,000 clients since its launch in 2023.
Getnet's Expansion
Getnet's client base expanded to 277,000 merchants, generating MXN 55 billion in fees and MXN 19 billion in income year-to-date, contributing significantly to fee income.
Efficiency and Cost Management
Banco Santander-Chile's efficiency ratio was 36.3% in Q3 2024, driven by digitalization and cost control, making it the best among peers.
Positive Macroeconomic Outlook
GDP growth for 2024 is forecasted at 2.4%, with further growth expected in 2025. Inflation is projected to decline to 3.4% by the end of 2025.
Lowlights
Asset Quality Concerns
NPLs and impairments are rising, reflecting economic cycle challenges. Cost of risk is expected to remain at 1.3%, with a one-time provision of MXN 18 billion in July for commercial portfolio adjustments.
Limited Loan Growth
The loan book grew by around 2% year-on-year after adjustments, with commercial loans contracting due to slower economic activity and portfolio sales.
Potential External Risks
Political tensions in the Middle East, U.S. elections, and fluctuations in copper and oil prices are potential external risks that could affect macroeconomic conditions.
Company Guidance
During Banco Santander-Chile's Q3 2024 earnings call, the bank provided guidance reflecting strong financial performance and strategic direction. The bank upgraded its ROE guidance for 2024 to a range of 18% to 19%, with a year-to-date ROE of 18.2%. Net interest margin is expected to remain between 3.4% and 3.5%, driven by a 74.8% year-on-year increase in net interest income. Loan growth is projected to be mid-single digits, and the cost of risk is anticipated to stabilize around 1.3%. The efficiency ratio is targeted to stay in the high 30s. For 2025, Santander-Chile expects loan growth to continue at mid-single digits, with an ROE between 18% and 20%. The bank emphasized its strategic focus on digital transformation, aiming to reach 5 million customers, and highlighted its strong position in sustainability, achieving 80 points in the Dow Jones Sustainability Index.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.