Banco Santander‑Chile reported first‑quarter 2026 results for the period ending March 31, 2026, with net income attributable to shareholders of CLP 273 billion and earnings per share of US$0.63. Return on average equity rose to 23.0% from 21.9% in the fourth quarter of 2025, while net fee income grew 4.5% year‑over‑year to CLP 68.9 billion. Net interest income increased 7.9% year‑over‑year, but net interest income and readjustments fell 4.7% due to a lower inflation environment, and the net interest margin settled at 3.8%. Total revenue net of interest expense was $732.3 million, below analyst estimates of $826.15 million, and the company’s quarterly revenue of $787.51 million also fell short of expectations.
The earnings per share of US$0.63 missed consensus estimates of US$0.64 by $0.01, reflecting a 1.7% year‑over‑year decline in net income. The decline is largely attributable to lower inflation, which reduced readjustment income and compressed margins, offsetting the gains from fee growth and interest income increases.
Revenue fell short of forecasts because the bank’s net interest income, while higher, was offset by a 4.7% decline in net interest income and readjustments, and fee income growth was modest. The combination of lower interest income and a modest fee‑income lift left revenue net of interest expense below the $826.15 million consensus.
Net interest income rose 7.9% year‑over‑year, driven by higher interest income, but the overall net interest income and readjustments declined 4.7% because the lower inflation environment reduced the bank’s readjustment earnings. This dynamic explains the compression of the net interest margin to 3.8% from 4.0% in the prior quarter and 4.1% in the same quarter last year.
Operationally, fee income growth helped support the bank’s fee‑centric model, and the efficiency ratio improved to 32.5% from 35.0% in Q1 2025, indicating stronger cost discipline. The bank’s digital‑first strategy continues to expand its customer base to nearly 4.8 million, with 2.7 million active customers. A dividend of $3.35 per share, representing 60% of 2025 profits, was approved, and capital ratios remain robust with CET1 at 10.9% and BIS at 16.4%.
The market reacted negatively to the earnings release, with analysts citing concerns over the slight decline in net income, the lower net interest margin, and the revenue miss relative to forecasts. These factors tempered enthusiasm for the bank’s continued growth trajectory.
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