Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Santander Chile Falls on Weak Quarterly Profit: Santiago Mover

July 31 (Bloomberg) -- Banco Santander Chile, the country’s second-largest lender by assets, dropped the most in six months after reporting lower-than-forecast profit.

Santander retreated 3.9 percent to 35.04 pesos at the close in Santiago, the biggest decline since Feb. 2.

Second-quarter net income fell 25 percent to 106 billion pesos ($220 million), or $1.14 per American depositary receipt. The average estimate of six analysts surveyed by Bloomberg was profit of $1.30 per ADR.

“This decline was mainly due to the lower inflation rate in the quarter that negatively affected net interest margins,” Santander said in a statement yesterday.

Santander’s return on equity, a measure of performance, slipped to 20.7 percent, from 30 percent a year earlier, according to Banchile-Citi, the joint research department of Citigroup Inc. and Banco de Chile.

“The stock now trades at 3.4 times last reported book value, a valuation level that we deem too demanding for a bank whose return on equity is now very far from the high 20s it once recorded, and seems to be settling in the low 20s,” analysts Daniel Abut, Juan Carlos Arandia and Carlos Rivera wrote in the report.

Chile’s annual rate of inflation fell to 2.7 percent in June, which is below the central bank’s 3 percent target.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.