| Over a month ago | ||||
Fortinet announced the… Fortinet announced the launch of the Cybercrime Atlas, a joint initiative launched this month in Davos at the organization's Annual Meeting by the World Economic Forum with the support of Banco Santander, Fortinet, Microsoft, and PayPal. The Cybercrime Atlas - currently hosted by the Forum - will aid industry, law enforcement, and government agencies by providing a first-of-its-kind visibility to disrupt cybercriminals across their ecosystem and infrastructure to track and help take down cybercriminals and their infrastructure around the world. | ||||
The company said,… The company said, "This lower result in the fourth quarter was mainly due to the impacts on NIMs of decelerating inflation and rising interest rates, which lowered assets yield and increased funding costs and mix." The company added, "Total equity reached Ch$4,238,372 million as of December 31, 2022, an increase of 6.8% QoQ and 13.7% compared to December 31, 2021. Our total CET1 increased 20.6% compared to a 0% rise in RWA. As a result, our CET1 ratio reached 11.1% and the total BIS III ratio reached 17.8% at the end of December 2022." | ||||
Goldman Sachs analyst… Goldman Sachs analyst Tito Labarta downgraded Santander Chile to Sell from Neutral with a price target of $14, down from $15. The analyst is "relatively more cautious" in Chile and Peru, believing profitability should decline from lower inflation and still-high interest rates. Santander Chile's profitability should deteriorate in 2023 due to lower net interest margin on the back of slower inflation and higher interest rates and higher provisions, Labarta tells investors in a research note. | ||||
| Over a quarter ago | ||||
Bradesco BBI initiated… Bradesco BBI initiated coverage of Santander Chile with a Neutral rating and $17 price target. | ||||
The net contribution from… The net contribution from the Bank's business results were especially strong in the quarter. These results exclude, among other items, the impact of inflation on results. The net contribution of our Retail Banking unit increased 9.8% YoY with total revenues increasing 11.3% YoY. The Net contribution from the Middle Market segment increased 29.2% YoY, with an increase in total revenues of 19.8%. Finally, the net contribution from our Corporate and Investment banking unit grew 43.7% YoY, driven by an 43.7% rise in total revenues. Net interest income and readjustments as of September 2022 increased by 2.1% compared to the same period in 2021. This increase in the NII was due to a higher inflation as the Bank has more assets than liabilities linked to inflation. This was partially offset by the higher interest rate environment, which increased funding costs. As a result, the Bank's net interest margin reached 3.7% in 9M22 compared to 4.1% in the same period of last year. The Bank's CET1 ratio improved 50bp QoQ to 10.1% and the total BIS III ratio reached 16.8% at the end of September 2022. | ||||
Scotiabank analyst Jason… Scotiabank analyst Jason Mollin upgraded Santander Chile to Outperform from Sector Perform with a price target of CLP 41, down from CLP 44. The analyst is switching his preference within Chilean large-cap banks after the strong outperformance of Banco de Chile versus Santander Chile. Investors should take advantage of this "material underperformance" and Santander Chile's "discounted valuation," Mollin tells investors in a research note. He expects the profitability gap between the two companies to narrow after peaking in 2022. | ||||
Citi analyst Felipe… Citi analyst Felipe Navarro downgraded Santander Chile to Neutral from Buy with a price target of CLP 40, down from CLP 45. The analyst believes the shares are fairly valued when considering the bank's return to normal levels of profitability. He lowered the firm's price target to reflect more conservative mid-term earnings estimates. | ||||
Credit Suisse analyst… Credit Suisse analyst Ricardo Alonso Garcia downgraded Santander Chile to Neutral from Outperform. | ||||
Postive YoY results were… Postive YoY results were driven by a strong increase in operating income of 20.5% mainly driven by net interest and readjustment income and fees. The Bank's net interest margin in 2Q22 was 4.5% compared to 3.7% in 1Q22 and 4.2% in 2Q21, driven by the higher inflation in the quarter. This was offset by higher operating expenses as the Bank continues to invest in the digital strategy and operating efficiencies along with higher expenses related that are being affected by the higher inflation rate. With this, the efficiency ratio reached 38.0%, increasing only slightly from 37.8% in 1Q22. The cost of credit reached 1.0% in the quarter in line with guidance. Overall coverage remained high at 227.8%. With these results, the Bank notched its sixth consecutive quarter of plus 20% ROAE which reached 31.7% in 2Q22. | ||||
UBS analyst Thiago… UBS analyst Thiago Batista upgraded Santander Chile to Neutral from Sell with a price target of $18, up from $17. The analyst says the shares now offer balance "between the moon and sun." | ||||
