Banco Santander-Chile (NYSE: BSAC) reported Q1 EPS of $0.54, $0.07 better than the analyst estimate of $0.47.

Net income attributable to shareholders in 1Q21 totaled Ch$183,970 million (Ch$0.96 per share and US$0.54 per ADR), decreasing 1.0% compared to 4Q20 (from now on QoQ) and increasing 26.9% compared to 1Q20. It is important to point out that 1Q21 results include an additional provision of Ch$24,000 million recognized in order to increase coverage ratios considering the uncertainty surrounding the potential impacts on credit quality of the COVID-19 crisis. Strong YoY results were driven by a 11.0% increase in net interest income which in turn was driven by asset growth and an improved funding mix. Provision expense also decreased 14.2% as asset quality continues to improve despite the pandemic. Operating expenses, meanwhile, only increased 1.5% YoY. Compared to 4Q20, the lower net income was mainly due to lower net interest income affected by a slightly lower inflation from 1.3% in 4Q20 to 1.1% in 1Q21. This was partially offset by a rebound in fees and financial transactions. The Bank notched its second consecutive quarter of plus 20% ROE which reached 20.4% in 1Q21.

For earnings history and earnings-related data on Banco Santander-Chile (BSAC) click here.