Profile: Banco Santander-Chile (BSAC.Z)
16 Nov 2017
Banco Santander-Chile (the Bank), formerly Banco Santander Chile, incorporated on August 1, 2002, is a Chilean bank. The Bank's segments include Retail banking, Middle-market, Global Corporate Banking and Corporate Activities (Other). The Bank provides a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a range of commercial transactions, trade, foreign currency forward contracts and credit lines and a range of retail banking services, including mortgage financing. In addition to its traditional banking operations, the Bank offers a range of financial services, including financial leasing, financial advisory services, mutual fund management, securities brokerage, insurance brokerage and investment management. It provides a range of financial services to corporate and individual customers.
The Bank's subsidiaries include Santander Corredora de Seguros Limitada, which is engaged in insurance brokerage; Santander Corredores de Bolsa Limitada, which is engaged in financial instruments brokerage; Santander Agente de Valores Limitada, which is engaged in securities brokerage; Santander S.A. Sociedad Securitizadora, which is engaged in purchase of credits and issuance of debt instruments, and Santander Servicios de Recaudacion y Pagos Limitada, which is engaged in support society, making and receiving payments. The Bank has presence in various business segments in Chile and distribution network with national coverage spanning across all the country, including the privately owned bank with a branch in Easter Island. It offers transaction capabilities to clients through its approximately 470 branches and over 1,540 automated teller machines (ATMs).
The Retail Banking segment consists of individuals and small to middle-sized entities (SMEs). This segment gives customers a range of services, including consumer loans, credit cards, auto loans, commercial loans, foreign exchange, mortgage loans, debit cards, checking accounts, savings products, mutual funds, stock brokerage and insurance brokerage. The SME clients are offered government-guaranteed loans, leasing and factoring.
The Middle-market segment serves companies and large corporations. It serves institutions, such as universities, government entities, local and regional governments, and companies engaged in the real estate industry carrying out projects to sell properties to third parties. The companies within this segment have access to various products, including commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, transactional services, treasury services, financial consulting, savings products, mutual funds and insurance brokerage. In addition, the companies in the real estate industry are offered specialized services to finance projects, primarily residential.
Global Corporate Banking
The Global Corporate Banking segment consists of foreign and domestic multinational companies. The companies within this segment have access to various products, including commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, transactional services, treasury services, financial consulting, investments, savings products, mutual funds and insurance brokerage. This segment also consists of a Treasury Division, which provides financial products, mainly to companies in the Middle-market segment and Global Corporate Banking. These include products, such as short-term financing and fund raising, brokerage services, derivatives, securitization and other tailor-made products. The Treasury Division may broker transactions and also manages the Bank's investment portfolio.
The Corporate Activities segment includes its Financial Management Division, which develops global management functions, including managing inflation rate risk, foreign currency gaps, interest rate risk and liquidity risk. Liquidity risk is managed mainly through wholesale deposits, debt issuances and the Bank's available-for-sale portfolio.
The Bank competes with Banco del Estado de Chile.