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Banco Santander Chile ADR BSAC

Morningstar Rating
$18.59 +0.40 (2.20%)
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Company Report

We Expect Better Results From Banco Santander Chile in 2024 as Pressure on Funding Costs Decreases

Banco Santander Chile is the largest bank by assets in the Chilean market. This scale has afforded the bank the second-cheapest deposit base in the country, significantly contributing to Santander Chile’s impressive returns on equity, which are typically in the upper teens. The bank has benefited from the introduction of the "Superdigital" and "Santander Life" accounts that are part of a larger trend toward increased adoption of digital banking in Chile. The bank’s digital offerings are tailored to reach an estimated population of 4.5 million unbanked Chilean citizens and have allowed the firm to trim down the size of its branch network.

Price vs Fair Value

BSAC is trading at a 4% discount.
Price
$18.24
Fair Value
$41.00
Uncertainty
Medium
1-Star Price
$46.45
5-Star Price
$35.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Banco Santander Chile has one of the largest deposit bases in Chile, and the bank’s recent success with its new digital accounts will only add to this strength.

Bears

The combination of falling inflation and high interest rates has caused Banco Santander Chile's net interest margin and profitability to collapse.

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News

Trading Information

Previous Close Price
$18.19
Day Range
$18.3818.61
52-Week Range
$16.9121.78
Bid/Ask
$18.57 / $18.60
Market Cap
$8.76 Bil
Volume/Avg
143,423 / 301,137

Key Statistics

Price/Earnings (Normalized)
12.64
Price/Sales
3.77
Dividend Yield (Trailing)
4.15%
Dividend Yield (Forward)
4.15%
Total Yield
4.15%

Company Profile

Founded in 1978, Banco Santander Chile is part of the Santander group and majority controlled by Santander Spain. Banco Santander is the largest bank in Chile by loans and the second largest by deposits. The bank generates most of its net interest income (roughly 65% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans. Banco Santander’s commercial loan business is more focused on small- to medium-sized companies, with firms generating more than CLP 10,000 million in revenue only making up around 5% of outstanding loans. Outside of lending, Banco Santander is the largest card issuer in the country with around 25% of the market and benefits from a long-term strategic partnership with the largest airline in the country LATAM Chile.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Growth
Total Number of Employees
9,229

Competitors

Valuation

Metric
BSAC
BCH
ITUB
Price/Earnings (Normalized)
12.647.598.54
Price/Book Value
1.461.631.53
Price/Sales
3.773.172.04
Price/Cash Flow
12.014.913.61
Price/Earnings
BSAC
BCH
ITUB

Financial Strength

Metric
BSAC
BCH
ITUB
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BSAC
BCH
ITUB
Return on Assets (Normalized)
0.83%2.26%1.44%
Return on Equity (Normalized)
13.09%25.13%19.76%
Return on Invested Capital (Normalized)
Return on Assets
BSAC
BCH
ITUB
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRZvvqbgmhWbry$81.5 Bil
ISNPY
Intesa Sanpaolo ADRHncsnlrfqLjyj$68.4 Bil
USB
U.S. BancorpFdtxxcvwmYtx$64.1 Bil
PNC
PNC Financial Services Group IncCfnmdbbHlmgpc$62.2 Bil
ITUB
Itau Unibanco Holding SA ADRMhdfpqvlHbpq$57.2 Bil
TFC
Truist Financial CorpGclhjjcjmZtybxb$50.8 Bil
MFG
Mizuho Financial Group Inc ADRJgplxpkynTknr$48.9 Bil
LYG
Lloyds Banking Group PLC ADRWpgtyvcdXlbgxg$40.4 Bil
DB
Deutsche Bank AGXccBsw$35.3 Bil
NWG
NatWest Group PLC ADRGftpvVvsb$33.5 Bil

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