Banco Santander Chile (BSAC) AI Stock Analysis

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Banco Santander Chile

(NYSE:BSAC)

73Outperform

Banco Santander Chile's overall score reflects its strong financial performance, characterized by profitability and operational efficiency, though cash flow management remains a concern. The technical analysis suggests positive momentum, supporting the stock's performance. Valuation indicates a fair price with an attractive dividend yield, adding to its appeal.

Banco Santander Chile (BSAC) vs. S&P 500 (SPY)

Market Cap

$10.54B

Dividend Yield2.62%

Average Volume (3M)368.00K

Price to Earnings (P/E)11.3

Beta (1Y)0.75

Revenue Growth-22.63%

EPS Growth32.31%

CountryUS

Employees8,757

SectorFinancial

Sector Strength78

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.92

Shares Outstanding471,115,330

10 Day Avg. Volume353,285

30 Day Avg. Volume368,003

Financial Highlights & Ratios

PEG Ratio0.35

Price to Book (P/B)N/A

Price to Sales (P/S)23.39

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

$21.00

Price Target Upside-3.31% Downside

Rating ConsensusHold

Number of Analyst Covering0

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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	885.90B	1.06T	690.15B
	EBITDA
0.00	0.00	1.02T	1.20T	761.72B
	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
68.40T	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

Technical Analysis Sentiment

Negative

Last Price21.72

Price Trends

50DMA

22.13

Negative

100DMA

20.61

Positive

200DMA

20.29

Positive

Market Momentum

MACD

0.41

Positive

RSI

59.82

Neutral

STOCH

43.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSAC, the sentiment is Negative. The current price of 21.72 is below the 20-day moving average (MA) of 22.94, below the 50-day MA of 22.13, and above the 200-day MA of 20.29, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 43.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMA	81 Outperform	$5.32B	12.24	9.05%	11.96%	40.86%	236.42%
CIB	77 Outperform	$10.59B	11.71	15.62%	15.48%	-0.15%	8.78%
BAP	74 Outperform	$14.22B	9.69	16.36%	5.18%	5.84%	12.67%
BSAC	73 Outperform	$10.54B	11.32	16.05%	2.62%	-22.63%	32.31%
BCH	73 Outperform	$13.43B	10.13	21.96%	6.12%	-19.01%	-13.44%
BSBR	70 Neutral	$17.08B	13.78	11.61%	4.78%	-3.94%	31.52%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%

* Financial Sector Average

Performance Comparison

BSAC

Banco Santander Chile

21.72

2.09

10.65%

BCH

Banco De Chile

25.65

3.79

17.34%

BMA

Banco Macro SA

67.74

21.11

45.27%

BSBR

Banco Santander Brasil

4.58

-0.81

-15.03%

CIB

Bancolombia

40.04

9.42

30.76%

BAP

Credicorp

178.74

16.68

10.29%

Banco Santander Chile Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: -0.73% | 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.