Banco Santander Chile ADR
BSAC: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $56.00 | Cfrbc | Cmbmllx |
Banco Santander Chile Reports a Weak End to 2022 as High Cost of Funds Pressures Results
Narrow-moat-rated Banco Santander Chile reported weak fourth-quarter earnings as lower inflation and higher cost of funds compressed the bank’s net interest margin materially in the fourth quarter. Net revenue was down 27.5% year over year and 16.8% sequentially to CLP 451 billion. As a result, earnings per share fell 56.2% from last year to CLP 0.54, which translates to a average return on equity of 10.1%. As we incorporate these results, we do not plan to materially alter our fair value estimate for Banco Santander Chile of $20 per ADR share.