Morningstar Rating

Stock Research and Analysis

by Timothy Puls

Bulls Say

Santander Chile is the most efficiently run bank in the country. It can leverage its cost advantage and dominant physical presence to continue to take market share and deliver high returns.
Chile’s banking system is relatively concentrated with the top eight banks holding over 84% of deposits in the country. This allows the largest banks, like Santander Chile, to earn high returns.
Chile is a good banking market and increases the likelihood that Santander Chile's profits will remain consistently high. Read more 

Bears Say

Santander Chile is overleveraged to consumer and mortgage loans within Chile. A disturbance in the economy that disproportionately affects consumers could be a major problem for the bank, as it holds more than 20% of the country's consumer and mortgage loans.
Competition for loans is intensifying as banks search for loan growth. Santander must compete more aggressively on pricing, which will put pressure on net interest margins, reducing profitability.
Falling copper prices could become problematic for Chile's economic growth and lead to elevated credit losses for Santander Chile. Read more 


Santander Chile is 70% owned by Spain’s Grupo Santander. The parent has power to appoint directors and maintains control of the board of directors. In some instances, this is a potential red flag, however, we think that the relationship is an asset   Read more 


Santander Chile is one of the largest banks in Chile. It has the most expansive footprint of any bank in the country, ranks second by lending market share, and ranks third   Read more 

2 of the World's Best Banks to Own 
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