trending Market Intelligence /marketintelligence/en/news-insights/trending/DC4lsEXrzhSxk8v5HP1WzA2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Santander Chile's Q4'16 profit buoyed by 41.6% decline in provisions

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Santander Chile's Q4'16 profit buoyed by 41.6% decline in provisions

Banco Santander Chile booked a 29.7% annual increase in its fourth-quarter 2016 profit, helped by a 41.6% decline in provisions for loan losses.

The Santiago, Chile-based company reported net income attributable to shareholders of about 108.63 billion Chilean pesos for the 2016 fourth quarter, up from 83.78 billion pesos earned in the year-ago period.

Net interest income remained relatively flat at about 316.65 billion pesos, down just 0.6% from 318.67 billion pesos in the fourth quarter of 2015. Net fee and commission income, meanwhile, grew 6.7% year over year to 63.14 billion pesos.

Santander Chile's net interest margin was 4.2% in the three-month period, compared to 4.5% in the linked quarter and 4.7% a year earlier.

The bank recorded 87.71 billion pesos in provisions for loan losses in the quarter, down from 150.26 billion pesos a year ago. The bank noted that the prior-year figure included nonrecurring, pretax provisions of 35.00 billion pesos directly related to a regulatory change regarding provisioning models for mortgage loans and substandard consumer and commercial loans analyzed on a collective basis. Excluding this impact, provision expenses fell 23.9% year over year in the fourth quarter of 2016.

Operating expenses, excluding impairment and other operating costs, ticked 1.2% lower on a yearly basis to 178.02 billion pesos. The lender said it closed 8% of its branch network and eliminated 16% of its ATMs during 2016.

Total loans expanded 7.5% annually to reach about 27.206 trillion pesos. The bank's 90-day NPL ratio was 2.1%, unchanged from the prior quarter but down from 2.5% a year earlier.

The company's annualized return on equity improved to 15.3% from 12.4% a year ago.

The fourth-quarter 2016 results brought the bank's full-year 2016 profit to 472.35 billion pesos, 5.2% higher than the 448.88 billion pesos earned in 2015.

As of Jan. 30, US$1 was equivalent to 649.24 Chilean pesos.