Banco Santander Chile (NYSE: BSAC) reported its unaudited results for the first quarter of 2018.
Net income attributable to shareholder increased 6.1% YoY. ROAE 3M18 of 19.4%
Net income attributable to shareholders in 3M18 totaled Ch$151,016M (Ch$0.80 per share and US$0.53/ADR), increasing 12.1% contrast to 4Q17 (from now on QoQ) and 6.1% contrast to 1Q17. The Bank`s ROAE in the quarter reached 19.4%. The positive evolution of our results reflects solid operating trends in terms of business volumes growth, strong growth of non-lending activities, a stable cost of credit and a tight control of costs,
Banco Santander-Chile (BSAC) , a stock from Money Center Banks Industry, has a value of $33.27 per share, noted a price change of 0.12% in recent trade close. It has a dividend yield of 3.22%. The price to earnings growth ratio is 1.39 and the P/S ratio is 4.75. The low P/S ratio indicates attractive the investment. A low P/S can also be effective in valuing growth stocks that have suffered a temporary setback.
Loan volume growth accelerating in line with economy.
In 1Q18, total loans increased 3.2% YoY and accelerating to an annualized growth rate of almost 9% in the quarter (2.2% QoQ). This was mainly driven by greater economic activity and business confidence reflected in the strong growth of commercial loans in the quarter. Loans in Global Corporate Banking (GCB) grew 15.5% QoQ after a 21.0% decrease in volumes in 4Q17. Loans in the Middle-market increased 2.9% QoQ and 6.7% YoY, indicating that this section is also gradually gaining momentum. These loans are generally lower yielding than retail loans. On the other hand, the greater demand for loans in these sections reflects that the investment rate in the economy is finally recovering after a prolonged deceleration. This should eventually fuel greater loan growth in higher yielding sections and greater non-lending income.
18.40% shares of the company possessed by Institutional Investors. The net percent change held by Institutional Investors has seen a change of -0.40% in last three month period.
‘Stock has P/B of 3.04. The price-to-book ratio is a ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share
Retail banking loans increased 0.8% QoQ and 3.8% YoY with growth from Loans to individuals that increased 1.6% QoQ and 4.7% YoY. Mortgage loans increased 1.9% QoQ and 6.0% YoY and Consumer loans increased 0.8% QoQ and 2.1% YoY. Loan growth among middle and high-income earners increased 1.9% QoQ and 5.9% YoY. At the end of 2017, the Bank releasedSantander Life, our new business model for the mass consumer market. At the end of March 2018, Life had 15,200 clients, 60% of which are new clients to the Bank. About 30% of new account plans are Life plans.
Loans to SMEs reduced 2.5% QoQ and increased 0.2% YoY. In our SMEs section, the Bank also continues to focus on growing the loan book among larger, less riskier SMEsBecause of risk considerations and alsoBecause of the fact that larger SMEs generate higher non-lending revenues.