Banco Santander Chile (NYSE: BSAC) nine-month profit rises 11.9% but third quarter slides

What happened

Banco Santander Chile (NYSE: BSAC) earned Ch$893 billion in the first nine months of 2026, up 11.9% from a year earlier.

The third quarter was weaker. Net income attributable to owners was Ch$237 billion, down 38.0% from the second quarter and 4.2% from the third quarter of 2025. Per ADR, the bank earned US$0.50 in the quarter and US$1.94 in the nine months.

Return on average equity was 24.5% for the nine months, up from 24.0% a year earlier. It was 19.1% in the third quarter. The board approved the management commentary on Oct. 27.

Key numbers

Metric	Latest	Change	Source
Net income attributable to owners, 9M26	Ch$893 billion	from Ch$797.87 billion, +11.9%	SEC 6-K
Net income attributable to owners, 3Q26 (change vs 2Q26)	Ch$237 billion	-38.0%	SEC 6-K
Return on average equity, 9M26	24.5%	from 24.0%, +0.5 percentage points	SEC 6-K
Credit loss expense, 3Q26 (change vs 3Q25)	Ch$157.05 billion	+9.3%	SEC 6-K
NPL ratio, September 2026	3.5%	from 3.1%, +0.4 percentage points	SEC 6-K
CET1 ratio, September 2026 (vs Dec. 2025)	10.9%	from 11.0%, -0.1 percentage points	SEC 6-K

Read more: Banco Santander Chile (BSAC) company research

Where the quarter weakened

The swing comes from readjustment income. This line rises with inflation as measured by the UF, Chile's inflation-indexed unit of account. UF variation fell to 0.6% in the third quarter from 2.5% in the second. Readjustment income dropped 64.6% from the prior quarter.

Net interest and readjustment income fell 18.1% from the second quarter. Net interest margin (NIM) slid to 3.8% from 4.7%.

Year over year, both inflation and NIM were unchanged at those third-quarter levels. The filing lists lower fee income and higher provisions among the reasons profit still slipped.

Over nine months the inflation boost still shows. UF variation reached 3.3% against 2.8% a year earlier. Readjustment income rose 21.8%, and net interest and readjustment income rose 7.0%. NIM edged up to 4.1% from 4.0%.

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Credit costs, fees and expenses

Credit costs rose in the quarter. Credit loss expense was Ch$157.05 billion in the third quarter, up 23.8% from the second quarter and 9.3% from the third quarter of 2025. For the nine months it totaled Ch$442.63 billion, up only 2.8%.

Asset quality weakened over the year. The NPL ratio was 3.5% at September 2026 against 3.1% a year earlier. Coverage of NPLs was 105.7% against 119.4%. Cost of credit was 1.4% in both periods.

Net fee and commission income for the nine months fell 3.3% to Ch$426.78 billion. Operating expenses fell 4.2%. The efficiency ratio improved to 33.0% from 35.9%.

Capital and dividends

The capital cushion stayed wide. The CET1 ratio was 10.9% and the capital adequacy ratio 16.3% at September 2026. At Dec. 31, 2025, they were 11.0% and 16.9%.

The bank raised its dividend provision to 70% of 2026 profits from 60%. Total equity rose 5.7% from year-end, including that provision. Loans grew 1.8% in the quarter and total deposits 2.8%.

Why it matters

OptimistFi has argued that the bank compounds value if it sustains net interest income and asset quality while turning profit into dividends and growth. This report supports the income and payout parts. It tests the asset-quality part, since the NPL ratio rose and provisions climbed.

The strong nine-month figures come with a caveat. The filing says the gain came mainly from higher inflation lifting readjustment income. The third quarter shows how fast that support fades when inflation drops. Coverage of nonperforming loans also fell over the year.

What's next

The next test is the fourth-quarter report. Readjustment income will show whether UF inflation supports earnings again. The bank's economists estimate UF inflation of 4.8% for 2026 against 3.3% through September.

Credit loss expense above the third-quarter level would add to the asset-quality worry. The bank also projects zero economic growth in Chile for 2026 and a policy rate of 4.5% through 2027.

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