SEC Filing | Banco Santander Chile

View:

Download DOC

Download PDF

Download XLS

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 001-14554

Banco Santander Chile

Santander Chile Bank

(Translation of Registrant’s Name into English)

Bandera 140

Santiago, Chile

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Table of Contents

Item

1.		Third Quarter Earning Report 2009

2.		Nine-Month Income Statement and Balance Sheet (Spanish)

3.		Nine-Month Income Statement and Balance Sheet (English)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BANCO SANTANDER-CHILE

By:	/s/ Juan Pedro Santa María

Name:	Juan Pedro Santa María
Title:	General Counsel

Date: Nov. 2, 2009

INDEX

SECTION		PAGE

SECTION 1: SUMMARY OF RESULTS		2

SECTION 2: BALANCE SHEET ANALYSIS		6

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT		9

SECTION 4: CREDIT RISK RATINGS		16

SECTION 5: SHARE PERFORMANCE		17

SECTION 6: INSTITUTIONAL BACKGROUND		18

ANNEX 1: BALANCE SHEET		19

ANNEX 2: YEAR TO DATE INCOME STATEMENT		20

ANNEX 3: QUARTERLY INCOME STATEMENTS		21

ANNEX 4: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION		22

CONTACT INFORMATION

Robert Moreno

Manager, Investor Relations Department

Banco Santander Chile

Bandera 140 Piso 19,

Santiago, Chile

Tel: (562) 320-8284

Fax: (562) 671-6554

Email: rmorenoh@santander.cl

Website: www.santander.cl

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 1: SUMMARY OF RESULTS

Evolution of Quarterly Net Income (Ch$mn) and ROE (%)

2008 IFRS refers to 2008’s net income restated for new accounting standards adopted in 2009. 2008 Historical refers to reported 2008’s net income (1.e. before being restated). ROE is calculated based on restated net income and equity.

Net income up 2.3% QoQ in 2Q09

In 3Q09, net income attributable to shareholders totaled Ch$109,901 million (Ch$0.58 per share and US$1.11/ADR1). These results represent an increase of 2.3% compared to 2Q09 (from now on QoQ) and a decrease of 16.9% compared to restated 3Q08 figures (from now on YoY). Compared to historical figures (not adjusted for the new accounting standards2), net income attributable to shareholders increased 13.9% YoY in 3Q09.

ROAE reached 28.8% in 3Q 09

With these results, the Bank’s ROAE in the quarter reached 28.8%. The Bank currently has the highest ROE among the banks operating in Chile. This strong profitability was achieved despite having one of the highest levels of capitalization in the Chilean financial system. As of September 30, 2009, the Bank’s BIS ratio reached 15.2% and its Tier I ratio stood at 11.2%.

1 Earnings per ADR is calculated using an exchange rate of Ch$546.07 per US$.

2 In 2009, banks in Chile adopted new accounting standards in line with international standards (IFRS) and historical figures in the rest of this report have been re-stated to make them comparable. The main difference compared to previous accounting standards was the elimination of price level restatement, a non-cash item. All figures and variation presented below are based on 3Q08 and 9M08 figures that have been restated in line with new accounting standards adopted in 2009.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Loan growth rebounding in retail banking

In 3Q09, total loans increased 1.4% QoQ. The pick up in economic growth has led to a rebound in loan volumes, especially in higher yielding retail banking activities. The Bank launched in the quarter its Reactivate! (Reactivate) program with the pre-approval of approximately US$ 7 billion in loans for clients. As a result, consumer and residential mortgage loans increased 1.6% QoQ and lending to SMES rose 2.2% in the same period.

Asset quality improving. Net provision expense decreases 17.6% QoQ in 3Q09

In 3Q09, the Bank’s net provision expense decreased 17.6% QoQ. Asset quality indicators also began to show signs of improvements, especially among individuals. Non-performing loans (NPLs) decreased 7.7% QoQ. The coverage of NPLs rose from 75.7% in 2Q09 to 88.2% in 3Q09, while the coverage of consumer NPLs reached 252.6% as of September 2009.

Net interest income, net of provisions was up 5.8% QoQ in 3Q09

In 3Q09, net interest income was down 4.1% QoQ and 13.7% YoY. The Bank’s net interest margin reached 5.7% in the quarter compared to 6.0% in 2Q09 and 6.9% in 3Q08. The lower margin was mainly due to the lower spread earned over the non-interest bearing deposits as a result of the lower interest rate environment and the higher deflation in the period. The Bank maintains long-term assets (mainly medium and long-term financial investments) that are denominated in Unidades de Fomento (UFs), an inflation indexed unit, which are partially funded with nominal or non-interest bearing peso short-term deposits. Deflation was - -0.47% in 3Q09 compared to -0.13% in 2Q09 and +3.63% in 3Q08. The negative effects of deflation were partially offset by the Bank’s focus on spreads and lower provision expense. Net interest income net of provisions was up 5.8% QoQ.

Fee income increases 2.6% QoQ in 3Q09

Net fee income increased 2.6% QoQ and 6.0% YoY in 3Q09. Solid fee growth from credit card and asset management fees were among the main drivers of fee income growth. Fees from credit, debit and ATM cards increased 14.7% QoQ and 32.7% YoY. The rise in fees from this business reflects, the launch of three new successful credit card products in 2009. Fees from asset management increased 10.8% QoQ and 8.9% YoY. Total assets under management reached Ch$3,478,763 million (US$6.3 billion) and increased 4.1% QoQ and 37.3% YoY. This reflects the greater flows of money to both money-market and stock funds as investor sentiment improves. The Bank’s commercial teams have also proactively funneled customer deposits to mutual funds, which is a more profitable product for the Bank. This was partially offset by the negative impact of regulatory changes over fees from checking accounts and lines of credit.

Costs down 1.3% QoQ in 3Q09

The Bank continued to control costs in the quarter and the efficiency ratio reached 32.6%. Operating expenses decreased 1.3% QoQ and 7.2% YoY in 3Q09. The evolution of operating efficiency was due to general cost control and the increase in usage of alternative channels, especially internet.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Gross income net of provisions / costs increases 10.4% QoQ in 3Q09

In summary, gross income, net of provisions / costs, a proxy for recurring earnings, jumped 10.4% QoQ in 3Q09, reflecting the higher quality of results in the period. The growth of fee income, the lower provision expense due to the improvement in asset quality and additional cost savings more than compensated the negative effects of deflation on net interest margins. Compared to 3Q08, the 11.9% YoY decline in net operating income was mainly due to the differences in inflations rates between the two quarters which negatively impacted net interest margins.

(Ch$ million)	3Q09		YoY Chg.			QoQ Chg.
Net interest income	217,253			-13.7	%		-4.1	%
Fee income	64,756			6.0	%		2.6	%
Financial transactions	31,510			-7.4	%		6.3	%
Provision expense	(79,122	)		9.1	%		-17.6	%
Operating expenses	(102,775	)		-7.2	%		-1.3	%
Gross income, net of provisions / costs	131,622			(19.5	)%		10.4	%
Other operating and non-operating income, net*	(21,721	)		(30.6	)%		82.8	%
Net income attributable to shareholders	109,901			(16.9	)%		2.3	%

* Includes Other operating income, Other operating expenses, income attributable to investments in other companies, income tax and net of minority interest.

Santander leads the system in terms of ROE and Efficiency in 9M09

In the nine-month period ended September 30, 2009 (9M09), net income attributable to shareholders totaled Ch$293,944 million (Ch$1.56/share and US$2.95/ADR). Net income attributable to shareholders decreased 8.5% YoY due to: (i) the 4.4% decrease in net interest income as a consequence of the negative effects of deflation on margins, (ii) the 30.2% rise in provision expense and (iii) the higher effective tax rate. This was partially offset by the 4.7% increase in fee income, the 106.9% rise in financial transactions and other operating income, net and the 3.7% fall in operating expenses. As a consequence, gross income, net of provisions / costs was down by 2.5% on a YoY basis. At the same time, Net income attributable to shareholders increased 17.3% in 9M09 compared to non-restated 9M08 net income.

(Ch$ million)	9M09		YoY Chg.
Net interest income	631,137			(4.4	)%
Fee income	189,532			4.7	%
Financial transactions	129,981			87.1	%
Provision expense	(266,093	)		30.2	%
Operating expenses	(305,162	)		(3.7	)%
Gross income, net of provisions / costs	379,395			(2.5	)%
Other operating and non-operating income, net*	(85,541	)		26.0	%
Net income attributable to shareholders	293,944			(8.5	)%

* Includes Other operating income, Other operating expenses, income attributable to investments in other companies, income tax and net of minority interest

In 9M09, the Bank’s ROAE reached 25.9%, the highest in the Chilean banking system and the efficiency ratio reached 32.8%, the most efficient bank in Chile.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Banco Santander Chile: Summary of Quarterly Results

	Quarter							Change %
(Ch$ million)		3Q09		2Q09		3Q08			3Q09 / 3Q08		3Q / 2Q 09
Net interest income		217,253		226,611		251,607			(13.7	)%	(4.1	)%
Fee income		64,756		63,145		61,107			6.0	%	2.6	%
Financial transactions, net		31,510		29,656		34,019			(7.4	)%	6.3	%
Provision expense		(79,122	)	(96,037	)	(72,492	)		9.1	%	(17.6	)%
Operating expenses		(102,775	)	(104,099	)	(110,700	)		(7.2	)%	(1.3	)%
Gross income, net of provisions / costs1		131,622		119,276		163,541			(19.5	)%	10.4	%
Other operating & non-operating income, net		(21,721	)	(11,885	)	(31,292	)		(30.6	)%	82.8	%
Net income attributable to shareholders		109,901		107,391		132,249			(16.9	)%	2.3	%
Net income/share (Ch$)		0.58		0.57		0.70			(16.9	)%	2.3	%
Net income/ADR (US$)2		1.11		1.12		1.32			(15.9	)%	(0.8	)%
Total loans		13,583,627		13,401,486		13,773,451			(1.4	)%	1.4	%
Customer funds		14,088,233		14,769,070		14,072,698			0.1	%	(4.6	)%
Shareholders’ equity		1,555,148		1,497,019		1,393,361			11.6	%	3.9	%
Net interest margin		5.7	%	6.0	%	6.9	%
Efficiency ratio		32.6	%	31.5	%	33.1	%
Return on average equity3		28.8	%	28.7	%	40.0	%
NPL4/ Total loans		2.8	%	3.1	%	—
Coverage NPLs		88.2	%	75.7	%	—
PDL / Total loans		1.3	%	1.4	%	1.1	%
Coverage ratio of PDLs5		192.7	%	173.0	%	167.1	%
Expected loss6		2.5	%	2.3	%	1.9	%
BIS ratio		15.2	%	15.0	%	13.1	%
Branches		502		502		502
ATMs		1,991		1,929		1,987

1.	Includes Other operating income, Other operating expenses, income attributable to investments in other companies, income tax and net of minority interest.

2.	The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate. The exchange rate used is Ch$546.07 per US$.

3.	Annualized quarterly Net income attributable to shareholders / Average equity attributable to shareholders.

4.	NPLs: Non-performing loans, includes all loans with one installment over 90 days overdue.

5.	PDLs: Past-due loans, includes all installments 90 days or more overdue.

6.	Allowance for loan losses / Total loans. Based on internal credit models and Superintendency of Banks guidelines. Banks must have a 100% coverage of expected loss.

2008 figures have been restated in accordance with the new accounting standards adopted by Chilean banks in 2009. Please note that this information is provided for comparative purposes only and that this restatement may undergo further changes during the year and, therefore, historical figures, including financial ratios, presented in this report may not be entirely comparable to future figures presented by the Bank.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 2: BALANCE SHEET ANALYSIS

LOANS

Loan growth rebounding in retail banking. Mix improving

Loans	Quarter ended,						% Change
(Ch$ million)	Sep-09		Jun-09		Sep-08		Sept. 09 / 08			Sept. 09 / Jun. 09
Total loans to individuals1	6,188,291		6,091,941		6,093,811		1.6		%	1.6		%
Consumer loans		2,155,200		2,121,045		2,241,163		(3.8	)%		1.6	%
Residential mortgage loans		4,033,091		3,970,896		3,852,648		4.7	%		1.6	%
SMEs		2,423,328		2,370,029		2,418,645		0.2	%		2.2	%
Institutional lending		285,090		262,915		216,016		32.0	%		8.4	%
Retail lending		8,896,709		8,724,885		8,728,472		1.9	%		2.0	%
Middle-Market & Real estate		2,466,786		2,472,244		2,831,381		(12.9	)%		(0.2	)%
Corporate		1,516,471		1,566,971		1,648,671		(8.0	)%		(3.2	)%
Total loans 2		13,583,627		13,401,486		13,773,451		(1.4	)%		1.4	%

Sum of consumer loans and residential mortgage loans.

Total loans gross of loan loss allowances and excluding interbank loans. Total loans includes other non-segmented loans, past due loans in each category and other non-segmented loans.

In 3Q09, total loans increased 1.4% QoQ and decreased 1.4% YoY. The pick up in economic growth has led to a rebound in loan volumes, especially in higher yielding retail banking activities. The Bank launched in the quarter its Reactivate! (Reactivate) program with the pre-approval of approximately US$ 7 billion in loans for clients. The lower interest rate and inflation environment has also led to a reduction in indebtedness levels of households, opening space for the expansion of the consumer loan portfolio. Asset quality indicators also showed improvement in the quarter which also permitted for greater volume expansion with select clients. As a result, consumer and residential mortgage loans increased 1.6% QoQ and lending to SMES rose 2.2% in the same period.

In the middle-market and corporate lending loan volumes decreased 0.2% and 3.2% QoQ, respectively. Despite the brighter economic outlook, the Bank maintains its strategy of focusing on profitability over market share concerns. The normalization of cross border liquidity flows, the active local bond market and price competition has also resulted in slower loan growth in these segments. Given our consistent focus on profitability, we have been focusing our commercial efforts in the large corporate market on non-lending activities, which generates a greater pool of revenues from these clients. This is reflected in our fee income, gains from financial transactions and the evolution of non-interest bearing liabilities.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

FUNDING

The Bank channels deposits to mutual funds to boost profitability and increases the duration of liabilities

Customer funds	Quarter						Change %
(Ch$ million)	Sep-09		Jun-09		Sep-08		Sept. 09 / 08			Sept. 09 / Jun. 09
Non-interest bearing deposits		3,152,739		3,083,814		3,130,913		0.7	%		2.2	%
Time deposits		7,456,731		8,342,396		8,408,557		(11.3	)%		(10.6	)%
Total customer deposits		10,609,470		11,426,210		11,539,470		(8.1	)%		(7.1	)%
Mutual funds		3,478,763		3,342,860		2,533,228		37.3	%		4.1	%
Total customer funds		14,088,233		14,769,070		14,072,698		0.1	%		(4.6	)%
Marketable debt securities		2,717,508		2,622,275		2,372,389		14.5	%		3.6	%

* (Loans - - marketable securities that fund mortgage portfolio) / (Time deposits + demand deposits).

Customer funds decreased 4.6% QoQ and were stable YoY. As a result of the sharp decline in interest rates and the deflationary environment, the Bank proactively channeled deposits to mutual funds, which is a more profitable product (See Fee Income). Client appetite for risk has increased which has also led to higher growth of assets under management. At the same time, the Bank continued to increase the duration of its liabilities by issuing long-term senior bonds at attractive rates in the local market in expectation of a tighter monetary policy in 2010. Total marketable debt securities outstanding increased 3.6% QoQ and 14.5% YoY.

As a consequence, total customer deposits decreased 7.1% QoQ and 8.1% YoY and mutual funds under management increased 4.1% QoQ and 37.3% YoY. Since year-end 2008, assets under management have increased 76.8%.

Evolution of mutual funds (Ch$ million)

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROE reaches 28.8% in 3Q09 with a BIS ratio of 15.2% and Tier I of 11.2%

Shareholders' Equity	Quarter									Change %
(Ch$ million)	Sep-09			Jun-09			Sep-08			Sept. 09 / 08			Sept. 09 / Jun. 09
Capital		891,303			891,303			818,535			8.9	%		0.0	%
Reserves		(16,960	)		(16,960	)		(21,234	)		(20.1	)%		0.0	%
Unrealized gain (loss) Available-for-sale financial assets		(33,001	)		(14,199	)		(31,204	)		5.8	%		132.4	%
Retained Earnings:		713,806			636,875			627,264			13.8	%		12.1	%
Retained earnings previous periods		508,045			508,045			381,030			33.3	%		0.0	%
Net income		293,944			184,043			321,408			(8.5	)%		59.7	%
Provision for mandatory dividend		(88,183	)		(55,213	)		(75,174	)		17.3	%		59.7	%
Minority Interest		30,887			30,920			24,361			26.8	%		(0.1	)%
Total Equity		1,586,035			1,527,939			1,417,722			11.9	%		3.8	%
Equity attributable to shareholders		1,555,148			1,497,019			1,393,361			11.6	%		3.9	%

Shareholders’ equity totaled Ch$1,555,148 million (US$2.8 billion) as of September 30, 2009. ROAE in 3Q09 reached 28.8% in 3Q09. The Bank currently has the highest ROE among the banks operating in Chile. This strong profitability was achieved despite having one of the highest levels of capitalization in the Chilean financial system. Voting common shareholders’ equity is the sole component of our Tier I capital and represented 11.2% of risk weighted assets as of September 2009. The BIS ratio reached 15.2% at the same date. The positive evolution of capitalization ratios was a direct result of the Bank’s strong income generation capacity and the active management of risk weighted assets.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	Sep-09			Jun-09			Sep-08			Sept. 09 / 08			Sept. 09 / Jun. 09
Tier I		1,555,148			1,497,019			1,477,245			5.3	%		3.9	%
Tier II		563,856			535,978			514,005			9.7	%		5.2	%
Regulatory capital		2,119,004			2,032,997			1,991,251			6.4	%		4.2	%
Risk weighted assets		13,918,058			13,544,319			15,170,215			(8.3	)%		2.8	%
Tier I ratio		11.2	%		11.1	%		9.7	%
BIS ratio		15.2	%		15.0	%		13.1	%

* Figures for 2008 are not restated for new accounting standards.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT

NET INTEREST INCOME

Net interest income, net of provisions, increases 5.8% QoQ

Net Interest Income / Margin	Quarter							Change %
(Ch$ million)		3Q09		2Q09		3Q08		3Q09 / 3Q08			3Q / 2Q 09
Client net interest income1		227,834		235,418		250,393			(9.0	)%		(3.2	)%
Non-client net interest income2		(10,581	)	(8,807	)	1,214			—	%		20.1	%
Net interest income		217,253		226,611		251,607			(13.7	)%		(4.1	)%
Average interest-earning assets		15,075,399		15,147,554		14,681,695			2.7	%		(0.5	)%
Average loans		13,602,381		13,733,919		13,444,859			1.2	%		(1.0	)%
Net interest margin (NIM)3		5.7	%	6.0	%	6.9	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		30.3	%	30.3	%	29.5	%
Quarterly inflation rate4		(0.47	)%	(0.13	)%	3.63	%
Avg. overnight interbank rate (nominal)		0.46	%	1.40	%	7.58	%
Avg. 10 year Central Bank yield (real)		2.88	%	2.86	%	3.39	%

1.	Client net interest income and margins, is net interest income (and margins) generated by our commercial areas.

2.	Non-client net interest income is net interest income generated by centralized activities, non-segmented portions of the balance sheet and Financial Management.

3.	Annualized.

4.	Inflation measured as the variation of the Unidad de Fomento in the quarter.

In 3Q09, net interest income was down 4.1% QoQ and 13.7% YoY. The Bank’s net interest margin reached 5.7% in the quarter compared to 6.0% in 2Q09 and 6.9% in 3Q08. Compared to our main competitors, the Bank has the highest net interest margin. In order to understand the underlying trends of our net interest income, we break these revenues between Client net interest income, which is net interest income (and margins) generated by our commercial areas, and Non-client interest income, which includes the rest.

Client net interest income. Client net interest income decreased 3.2% QoQ and 9.0% YoY in 3Q09. This was mainly due to: (i) the strong reduction in interest rates that negatively affected the spread earned over free funds (non-interest bearing liabilities and equity) and (ii) the shift in the loan mix towards less risky, but lower yielding loans, such as residential mortgage loans. This reduction in client net interest income was more than offset by favorable trends in asset quality (See Provision Expense). As a consequence, the Bank’s net interest income net of provisions was up 5.8% QoQ.

Non-Client net interest income. Non-client net interest income, which is net interest income generated by centralized activities, non-segmented portions of the balance sheet and Financial Management, totaled a loss of Ch$10,581 million. This higher loss was mainly due to the higher deflation in the period. The Bank maintains long-term assets (mainly medium and long-term financial investments) that are denominated in Unidades de Fomento (UFs), an inflation indexed unit, which are partially funded with nominal or non-interest bearing peso short-term deposits. The Bank has a positive UF gap of approximately US$2.5 billion. In 3Q09, deflation had a negative impact on net interest income and margins due to this gap. The UF deflation was (0.47%) in 3Q09 compared to (0.13%) in 2Q09 and 3.63% in 3Q08. In 3Q08, Chilean inflation reached its annual peak before the collapse of oil prices at the end of 2008.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

PROVISION FOR LOAN LOSSES

Asset quality improving. Net provision expense decreases 17.6% QoQ in 3Q09

Provision for loan losses	Quarter							Change %
(Ch$ million)		3Q09		2Q09		3Q08			3Q09 / 3Q08		3Q / 2Q 09
Gross provisions		(25,377	)	(19,402	)	(13,421	)		89.1	%	30.8	%
Charge-offs		(65,613	)	(87,392	)	(68,324	)		(4.0	)%	(24.9	)%
Gross provisions and charge-offs		(90,990	)	(106,794	)	(81,745	)		11.3	%	(14.8	)%
Loan loss recoveries		11,868		10,757		9,253			28.3	%	10.3	%
Net provisions for loan losses		(79,122	)	(96,037	)	(72,492	)		9.1	%	(17.6	)%
Total loans1		13,583,627		13,401,486		13,773,451			(1.4	)%	1.4	%
Total reserves (RLL)		(338,020	)	(314,191	)	(258,446	)		30.8	%	7.6	%
Past due loans2 (PDL)		175,426		181,645		154,651			13.4	%	(3.4	)%
Non-performing loans3 (NPLs)		383,172		415,311		—			—	%	(7.7	)%
Gross provision expense / Loans		2.68	%	3.19	%	2.37	%
Cost of credit4		2.33	%	2.87	%	2.11	%
PDL / Total loans		1.29	%	1.36	%	1.12	%
Expected loss (RLL / Total loans)		2.49	%	2.34	%	1.88	%
Coverage of past due loans5		192.7	%	173.0	%	167.1	%
NPL / Total loans		2.8	%	3.1	%	—
Reserves / NPLs		88.2	%	75.7	%	—

1	Excludes interbank loans.

1	PDLs: Past due loans: installments or credit lines more than 90 days overdue.

2	NPLs: Non-performing loans: Full balance of loans with one installment 90 days or more overdue.

3	Cost of credit: Net provision expense / loans annualized.

4	Coverage of PDLs: RLL / PDLs.

5	Coverage NPLs: RLL / NPLs.

In 3Q09, the Bank’s net provision expense decreased 17.6% QoQ. Asset quality indicators began to show signs of improvements in the quarter, especially among individuals. Non-peforming loans (NPLs) decreased 7.7% and past due loans (PDLs) decreased 3.4% QoQ. The coverage of NPLs rose from 75.7% in 2Q09 to 88.2% in 3Q09. The coverage of consumer NPLs reached 252.6% as of September 2009.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Evolution of Coverage of NPLs by Product (%)

Coverage= Reserve for loan losses / Loans

At the same time charge-offs decreased 24.9% QoQ and loan loss recoveries increased 10.3% QoQ. This as a direct result of the more favorable economic environment and the pro-active measures taken by the Bank to control asset quality. As mentioned in previous earning reports, the Bank continued to focus loan growth in lower risk segments in order to contain asset quality. At the same time, commercial executives continued to dedicate an important percentage of their time to asset quality issues and recoveries. By loan product, net provision expense for consumer loans decreased 26.9% QoQ and provision expense for residential mortgage loans fell 11.5% QoQ. This was offset by the 35.0% QoQ increase in net provision expense for commercial loans. This rise was mainly due to the proactive policy of increasing coverage of performing loans in weaker sectors of the economy such as the salmon sector, among others. By loan product, provision expense was as follows:

Net provisions for loan losses by segment	Quarter							Change %
(Ch$ million)		3Q09		2Q09		3Q08			3Q09 / 3Q08		3Q / 2Q 09
Commercial loans1		(18,374	)	(13,612	)	(8,868	)		107.2	%	35.0	%
Residential mortgage loans		(2,741	)	(3,096	)	(2,002	)		36.9	%	(11.5	)%
Consumer loans		(58,007	)	(79,329	)	(61,622	)		(5.9	)%	(26.9	)%
Net provisions for loan losses		(79,122	)	(96,037	)	(72,492	)		9.1	%	(17.6	)%

1 Includes net provision expenses for interbank loans and off-balance sheet contingent operations.

The 9.1% YoY increase in provision expense is directly related to negative effects of the economic downturn on asset quality and on the Expected Loan Loss ratio or Risk Index. This ratio, defined as loan loss allowances over total loans, measures how much the Bank expects to loose on its loan book, according to its internal models and the Superintendency of Banks guidelines. The Bank is required to have 100% coverage of its Expected Loan Loss ratio. This indicator increased from 1.88% as of September 2008 to 2.49% at September 2009.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

NET FEE INCOME

Strong growth of usage-linked fees

Fee Income	Quarter				Change %
(Ch$ million)		3Q09	2Q09	3Q08		3Q09 / 3Q08		3Q / 2Q 09
Collection fees		17,168	16,552	12,105		41.8	%	3.7	%
Credit, debit & ATM card fees		13,702	11,950	10,325		32.7	%	14.7	%
Checking accounts & lines of credit		12,284	13,116	19,534		(37.1	)%	(6.3	)%
Asset management		8,302	7,495	7,622		8.9	%	10.8	%
Guarantees, pledges and other contingent operations		6,260	5,923	4,236		47.8	%	5.7	%
Insurance brokerage		4,221	4,719	3,879		8.8	%	(10.6	)%
Fees from brokerage and custody of securities		1,763	1,766	1,903		(7.4	)%	(0.2	)%
Other Fees		1,056	1,624	1,503		(29.7	)%	(35.0	)%
Total fees		64,756	63,145	61,107		6.0	%	2.6	%

Net fee income increased 2.6% QoQ and 6.0% YoY in 3Q09. The Bank implemented various strategies to promote fee growth in the quarter despite lower economic growth and regulatory changes.

Fees from credit, debit and ATM cards increased 14.7% QoQ and 32.7% YoY. The rise in fees from this business reflects, among other initiatives, the launch of three new credit card products in 2009. These are: (i) the World Member Card, which is co-branded with Lan Airlines for the mid-upper income segment, (ii) Santander Banefe Lan Pass, which is the first credit card for the mid-lower income segment that is co-branded with an airline and permits the accumulation of mileage with purchases and, (iii) a credit card co-branded with Movistar, that permits the accumulation of cell phone minutes with purchases, lets clients renew their cell phone once a year and other benefits. This card has been very popular among younger individuals and university students. As of September 2009, the Bank, with 33.2% of all bank credit cards, generated 37.9% of monetary purchases. Purchases were up 17.0% in real terms YoY compared to 3.9% for the rest of the market, excluding Santander. Including non-bank issuers, the Bank also reached the number 1 ranking in terms of credit card purchases in 3Q09, surpassing the largest Chilean retailer.

Fees from checking accounts and lines of credit decreased 6.3% QoQ and 37.1% YoY. As stated in previous earnings reports, fee income from lines of credit is expected to decline throughout 2009 due to regulatory changes that prohibits fees charged for unauthorized overdrafts. This measure began in April 2009. This is being offset by the Bank’s strategy to increased product usage and cross-selling as reflected in other fee generating products, such as the card business, asset management and insurance brokerage.

Collection fees in 3Q09 increased 3.7% QoQ and 41.8% YoY. This rise was mainly due to higher fees from the collection of loan insurance policies on behalf of third parties. The ability to pay bills easily online has also driven collection fees.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

Fees from asset management increased 10.8% QoQ and 8.9% YoY. Total assets under management reached Ch$3,478,763 million (US$6.3 billion) and increased 4.1% QoQ and 37.3% YoY. This reflects the greater flows of money to both money market and stock funds as investor sentiment improves. The Bank’s commercial teams have also proactively funneled customer deposits to mutual funds, which is a more profitable product for the Bank.

OPERATING EXPENSES AND EFFICIENCY

Costs down 1.3% QoQ and 7.2% YoY

Operating Expenses	Quarter							Change %
(Ch$ million)		3Q09		2Q09		3Q08			3Q09 / 3Q08		3Q / 2Q 09
Personnel expenses		(55,751	)	(57,701	)	(63,483	)		(12.2	)%	(3.4	)%
Administrative expenses		(34,955	)	(34,258	)	(35,510	)		(1.6	)%	2.0	%
Depreciation and amortization		(12,069	)	(12,140	)	(11,707	)		3.1	%	(0.6	)%
Operating expenses		(102,775	)	(104,099	)	(110,700	)		(7.2	)%	(1.3	)%
Efficiency ratio*		32.6	%	31.5	%	33.1	%

* Operating expenses / Operating income. Operating income = Net interest income + Net fee income+ Financial transactions net + other operating income and expenses.

The Bank continued to control costs in the quarter and the efficiency ratio reached 32.6%. Operating expenses decreased 1.3% QoQ and 7.2% YoY in 3Q09. The 3.4% QoQ and 12.2% YoY decline in personnel expenses was mainly due to the lower inflationary environment, lower expenses from paid-vacation days, a fall in variable incentives and a 5% reduction in average headcount. The positive evolution of costs was also due to general cost control and our strategy of increasing the profitability of the existing branch network and the increase in usage of alternative channels, especially internet. The Bank has a 28% market share in terms of clients using online banking services, which are growing at a rapid pace.

Evolution of Internet Transactions (# mn)

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

NET RESULTS FROM FINANCIAL TRANSACTIONS

Positive results from client and non-client related treasury activities mitigates negative effect of deflation over margins

Net Result from Financial Transactions	Quarter									Change %
(Ch$ million)	3Q09			2Q09			3Q08			3Q09 / 3Q08			3Q / 2Q 09
Net gains from mark-to-market & trading		51,447			(18,863	)		96,599			(46.7	)%		—	%
Exchange differences, net		(19,937	)		48,519			(62,580	)		(68.1	)%		—	%
Net results from financial transactions		31,510			29,656			34,019			(7.4	)%		6.3	%
Avg. 10 year Central Bank yield (real)		2.88	%		2.86	%		3.39	%
Avg. 10 year Central Bank yield (nominal)		5.70	%		5.63	%		7.74	%

The Net gains from financial transaction, which includes the sum of the net gains from mark-to-market and trading and exchange differences, net totaled a gain of Ch$31,510 million in 3Q09. These results mainly include the mark-to-market of the available for sale investment portfolio, realized and unrealized gains of financial investments held for trading, the interest revenue generated by the held for trading portfolio, gains or losses from the sale of charged-off loans and the mark-to-market of derivatives. The results recorded as Exchange differences, net mainly includes the translation gains or losses of assets and a liability denominated in foreign currency. In order to better understand these line items, we present the net results from financial transactions by business area in the table below.

Net Result from Financial Transactions	Quarter						Change %
(Ch$ million)	3Q09		2Q09		3Q08		3Q09 / 3Q08			3Q / 2Q 09
Santander Global Connect & Market making*		15,335		18,374		30,730		(50.1	)%		(16.5	)%
ALCO & Proprietary trading		16,175		11,282		3,289		391.8	%		43.4	%
Net results from financial transactions		31,510		29,656		34,019		(7.4	)%		6.3	%

* Santander Global Connect is the Bank’s commercial platform for selling treasury products to our clients. This line item also includes the gain or loss from the sale of charged-off loans.

The 6.3% QoQ increase in this line item was mainly due to higher gains from proprietary trading gains in the quarter and higher gains from the sale of fixed income investments. The 7.4% YoY decrease in the net results from financial transactions was mainly due to lower gains from our client market making business due to higher volatility in 3Q08 and a one-time gain of approximately Ch$6,000 million from the sale of charged-off loans that was recognized in 3Q08.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

OTHER INCOME AND EXPENSES

Other Income and Expenses	Quarter									Change %
(Ch$ million)	3Q09			2Q09			3Q08			3Q09 / 3Q08			3Q / 2Q 09
Other operating income and expenses		1,297			10,749			(12,750	)		—	%		(87.9	)%
Income attributable to investments in other companies		97			440			(42	)		—	%		(78.0	)%
Income tax		(22,439	)		(21,816	)		(17,545	)		27.9	%		2.9	%
Income tax rate		16.9	%		16.7	%		11.6	%

Other operating income, net mainly includes the results from the sale and maintenance of repossessed assets, the net results of provisions for non-credit contingencies and other results. The 87.9% QoQ decline was mainly due to lower gains from the reversal of non-specific credit and non-credit related contingencies in 3Q09 compared to 2Q09. In 1Q09, the Bank recognized additional provisions for non-specific credit and non-credit contingencies given the difficult economic environment and the potential for further deterioration of the economic downturn. In 2Q and 3Q 2009, the Bank reversed, in part, these non-specific provisions as the Bank assigned specific credit provisions to loans, which are recognized as provisions for loan losses.

As a consequence of the adoption of new accounting standards, the Bank’s taxable net income base changed, mainly as a result of the elimination of price level restatement, a non-cash item. In a positive inflationary environment, the Bank previously recognized a tax deductible loss from price level restatement in its income statement. In 3Q08, the Bank recognized in its historical income statement a Ch$31,157 million loss from price level restatement, which was tax deductible. As the results from price level restatement are no longer recognized and tax expense remains unchanged under the new accounting standards, the re-stated 3Q08 effective tax rate falls. The statutory tax rate in Chile has not changed and is 17% over net income before taxes.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 4: CREDIT RISK RATINGS

International ratings: Fitch affirms the Bank’s A+ rating

The Bank has credit ratings from three leading international agencies. All of our ratings are assigned a stable outlook. We are the best rated companies in Latin America.

Moody’s		Rating
Long-term bank deposits		A1
Senior bonds		Aa2
Subordinated debt		Aa3
Bank Deposits in Local Currency		Aa2
Bank financial strength		B-
Short-term deposits		P-1

Standard and Poor’s		Rating
Long-term Foreign Issuer Credit		A+
Long-term Local Issuer Credit		A+
Short-term Foreign Issuer Credit		A-1
Short-term Local Issuer Credit		A-1

Fitch		Rating
Foreign Currency Long-term Debt		A+
Local Currency Long-term Debt		A+
Foreign Currency Short-term Debt		F1
Local Currency Short-term Debt		F1
Individual rating		B

Local ratings:

Our local ratings, the highest in Chile, are the following:

Local ratings	Fitch Ratings	Feller Rate
Shares	Level 2	1CN1
Short-term deposits	N1+	Level 1+
Long-term deposits	AAA	AAA
Mortgage finance bonds	AAA	AAA
Senior bonds	AAA	AAA
Subordinated bonds	AA+	AA+
Outlook	Stable	Stable

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 5: SHARE PERFORMANCE

As of September 2009

Ownership Structure:

ADR price (US$) 9M09

09/30/09:			57.54
Maximum (9M09):			57.94
Minimum (9M09):			31.22

Market Capitalization: US$10,436 million

P/E 12 month trailing*:	14.1
P/BV (09/30/09)**:	3.63
Dividend yield***:	6.3	%

Daily traded volumes 9M 2009

Local share price (Ch$) 9M09

09/30/09:			30.41
Maximum (9M09):			30.41
Minimum (9M09):			18.23

Dividends:

Year paid	Ch$/share		% of previous year earnings
2006:		0.83		65	%
2007:		0.99		65	%
2008:		1.06		65	%
2009:		1.13		65	%

*	Price as of Sept. 30 / 12mth Earnings (2008 non-restated)

**	Price as of Sept. 30 / Book value as of 09/30/09

***	Based on closing price on record date of last dividend payment.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

SECTION 6: INSTITUTIONAL BACKGROUND

Institutional Background

As per the latest public records published by the Superintendency of Banks of Chile for September 2009, Banco Santander Chile was the largest bank in terms of loans and deposits. The Bank has the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s, A+ by Fitch and A1 by Moody’s, which are the same ratings assigned to the Republic of Chile. The stock is traded on the New York Stock Exchange (NYSE: SAN) and the Santiago Stock Exchange (SSE: Bsantander). The Bank’s main shareholder is Santander, which controls 76.91% of Banco Santander Chile.

Banco Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,271 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp. of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches – more than any other international bank – and over 170,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. In the first half of 2009, Santander registered €4,519 million in net attributable profit.

For more information, see www.santander.com.

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 1: BALANCE SHEET

													Sept. 09 /			Sept. 09 /
Unaudited Balance Sheet	Sep-09			Sep-09			Jun-09			Sep-08				08		Jun. 09
Assets	US$ths												% Chg.

Cash and balances from Central Bank		1,649,606			906,871			942,065			854,459			6.1	%		(3.7	)%
Funds to be cleared		738,206			405,829			426,647			513,843			(21.0	)%		(4.9	)%
Financial assets held for trading		1,333,914			733,319			1,003,448			891,069			(17.7	)%		(26.9	)%
Investment collateral under agreements to repurchas		29,261			16,086			13,212			8,805			82.7	%		21.8	%
Derivatives		2,598,447			1,428,496			1,502,295			1,296,402			10.2	%		(4.9	)%
Interbank loans		103,090			56,674			57,800			76,015			(25.4	)%		(1.9	)%
Loans, net of reserves for loan losses		24,093,875			13,245,608			13,087,295			13,515,005			(2.0	)%		1.2	%
Available-for-sale financial assets		3,461,968			1,903,217			1,444,802			1,316,741			44.5	%		31.7	%
Held-to-maturity investments		-			-			-			-			—	%		—	%
Investments in other companies		13,068			7,184			7,145			7,926			(9.4	)%		0.5	%
Intangible assets		117,977			64,858			69,356			65,090			(0.4	)%		(6.5	)%
Fixed assets		339,724			186,763			190,997			198,133			(5.7	)%		(2.2	)%
Current tax assets		8,220			4,519			4,826			12,654			(64.3	)%		(6.4	)%
Deferred tax assets		191,764			105,422			94,369			124,800			(15.5	)%		11.7	%
Other assets		984,933			541,467			561,407			662,024			(18.2	)%		(3.6	)%
Total Assets		35,664,053			19,606,313			19,405,664			19,542,966			0.3	%		1.0	%

Liabilities and Equity
Total non-interest bearing deposits		5,734,859			3,152,739			3,083,814			3,130,913			0.7	%		2.2	%
Funds to be cleared		463,816			254,983			195,249			308,345			(17.3	)%		30.6	%
Investments sold under agreements to repurchase		1,468,002			807,034			512,279			739,967			9.1	%		57.5	%
Time deposits and savings accounts		13,563,858			7,456,731			8,342,396			8,408,557			(11.3	)%		(10.6	)%
Derivatives		2,397,872			1,318,230			1,462,558			1,122,579			17.4	%		(9.9	)%
Deposits from credit institutions		3,167,585			1,741,380			1,140,901			1,495,608			16.4	%		52.6	%
Marketable debt securities		4,943,171			2,717,508			2,622,275			2,372,389			14.5	%		3.6	%
Other obligations		265,439			145,925			149,046			130,521			11.8	%		(2.1	)%
Current tax liabilities		110,055			60,503			34,786			850			7018.0	%		73.9	%
Deferred tax liability		3,909			2,149			9,567			57,388			(96.3	)%		(77.5	)%
Provisions		275,987			151,724			122,990			137,460			10.4	%		23.4	%
Other liabilities		384,487			211,372			201,864			220,667			(4.2	)%		4.7	%
Total Liabilities		32,779,041			18,020,278			17,877,725			18,125,244			(0.6	)%		0.8	%

Equity
Capital		1,621,288			891,303			891,303			818,535			8.9	%		0.0	%
Reserves		(30,850	)		(16,960	)		(16,960	)		(21,234	)		(20.1	)%		0.0	%
Unrealized gain (loss) Available-for-sale financial asse		(60,029	)		(33,001	)		(14,199	)		(31,204	)		5.8	%		132.4	%
Retained Earnings:		1,298,419			713,806			636,875			627,264			13.8	%		12.1	%
Retained earnings previous periods		924,138			508,045			508,045			381,030			33.3	%		0.0	%
Net income		534,687			293,944			184,043			321,408			(8.5	)%		59.7	%
Provision for mandatory dividend		(160,406	)		(88,183	)		(55,213	)		(75,174	)		17.3	%		59.7	%
Total Shareholders' Equity		2,828,828			1,555,148			1,497,019			1,393,361			11.6	%		3.9	%
Minority Interest		56,184			30,887			30,920			24,361			26.8	%		(0.1	)%
Total Equity		2,885,011			1,586,035			1,527,939			1,417,722			11.9	%		3.8	%
Total Liabilities and Equity		35,664,053			19,606,313			19,405,664			19,542,966			0.3	%		1.0	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 2 : YTD INCOME STATEMENTS

YTD Income Statement Unaudited	Sep-09			Sep-09			Sep-08			Sept. 09 / 08
	US$ths.			Ch$ million nominal						% Chg.

Interest revenue		1,574,197			865,415			1,520,567			(43.1	)%
Interest expense		(426,154	)		(234,278	)		(860,704	)		(72.8	)%
Net interest revenue		1,148,044			631,137			659,863			(4.4	)%
Fee income		428,238			235,424			219,270			7.4	%
Fee expense		(83,478	)		(45,892	)		(38,244	)		20.0	%
Net fee income		344,760			189,532			181,026			4.7	%
Net gains from mark-to-market and trading		94,612			52,013			171,255			(69.6	)%
Exchange differences, net		141,824			77,968			(101,771	)		—	%
Financial transactions, net		236,437			129,981			69,484			87.1	%
Other operating income		15,725			8,645			15,541			(44.4	)%
Total operating income		1,744,966			959,295			925,914			3.6	%
Provision expense		(484,025	)		(266,093	)		(204,405	)		30.2	%
Total operating income net of provisions		1,260,940			693,202			721,509			(3.9	)%
Personnel expenses		(305,313	)		(167,846	)		(179,228	)		(6.4	)%
Administrative expenses		(186,741	)		(102,661	)		(101,077	)		1.6	%
Depreciation and amortization		(63,038	)		(34,655	)		(36,433	)		(4.9	)%
Operating expenses		(555,092	)		(305,162	)		(316,738	)		(3.7	)%
Other operating expenses		(53,901	)		(29,632	)		(32,353	)		(8.4	)%
Total operating expenses		(608,993	)		(334,794	)		(349,091	)		(4.1	)%
Net operating income		651,947			358,408			372,418			(3.8	)%
Income attributable to investments in other companies		1,570			863			1,291			—	%
Net income before taxes		653,517			359,271			373,709			(3.9	)%
Income tax		(110,075	)		(60,514	)		(46,580	)		29.9	%
Net income from ordinary activities		543,442			298,757			327,129			(8.7	)%
Net income discontinued operations		0			0			0
Net income attributable to:
Minority interest		8,755			4,813			5,721			(15.9	)%
Net income attributable to shareholders		534,687			293,944			321,408			(8.5	)%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 3 : QUARTERLY INCOME STATEMENTS

Unaudited Quarterly Income Statement	3Q09			3Q09			2Q09			3Q08			3Q09 / 3Q08			3Q / 2Q 09
	US$ths.												% Chg.
Interest revenue		509,104			279,880			338,744			624,168			(55.2	)%		(17.4	)%
Interest expense		(113,919	)		(62,627	)		(112,133	)		(372,561	)		(83.2	)%		(44.1	)%
Net interest revenue		395,185			217,253			226,611			251,607			(13.7	)%		(4.1	)%
Fee income		144,764			79,584			78,677			74,497			6.8	%		1.2	%
Fee expense		(26,972	)		(14,828	)		(15,532	)		(13,390	)		10.7	%		(4.5	)%
Net fee income		117,792			64,756			63,145			61,107			6.0	%		2.6	%
Net gains from mark-to-market and trading		93,583			51,447			(18,863	)		96,599			(46.7	)%		—	%
Exchange differences, net		(36,266	)		(19,937	)		48,519			(62,580	)		(68.1	)%		—	%
Total financial transactions, net		57,317			31,510			29,656			34,019			(7.4	)%		6.3	%
Other operating income, net		5,855			3,219			2,928			(170	)		—	%		9.9	%
Total operating income		576,149			316,738			322,340			346,563			(8.6	)%		(1.7	)%
Provision expense		(143,924	)		(79,122	)		(96,037	)		(72,492	)		9.1	%		(17.6	)%
Total operating income net of provisions		432,226			237,616			226,303			274,071			(13.3	)%		5.0	%
Personnel expenses		(101,412	)		(55,751	)		(57,701	)		(63,483	)		(12.2	)%		(3.4	)%
Administrative expenses		186,890			(34,955	)		(34,258	)		(35,510	)		(1.6	)%		2.0	%
Depreciation and amortization		(21,954	)		(12,069	)		(12,140	)		(11,707	)		3.1	%		(0.6	)%
Operating expenses		(186,949	)		(102,775	)		(104,099	)		(110,700	)		(7.2	)%		(1.3	)%
Other operating expenses		(3,496	)		(1,922	)		7,821			(12,581	)		(84.7	)%		—	%
Total operating expenses		(190,445	)		(104,697	)		(96,278	)		(123,281	)		(15.1	)%		8.7	%
Net operating income		241,781			132,919			130,025			150,790			(11.9	)%		2.2	%
Income attributable to investments in other companies		176			97			440			(42	)		—	%		(78.0	)%
Net income before taxes		241,957			133,016			130,465			150,748			(11.8	)%		2.0	%
Income tax		(40,817	)		(22,439	)		(21,816	)		(17,545	)		27.9	%		2.9	%
Net income from ordinary activities		201,141			110,577			108,649			133,203			(17.0	)%		1.8	%
Net income discontinued operations		0			0			0			0			—	%		—	%
Net income attributable to:
Minority interest		1,230			676			1,258			954			(29.1	)%		(46.3	)%
Net income attributable to shareholders		199,911			109,901			107,391			132,249			(16.9	)%		2.3	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

ANNEX 4: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION

	Mar-08			Jun-08			Sep-08			Dec-08			Mar-09			Jun-09			Sep-09
(Ch$ millions)
Loans
Consumer loans		2,158,563			2,205,135			2,241,163			2,248,996			2,187,832			2,121,045			2,155,200
Residential mortgage loans		3,454,267			3,636,849			3,852,648			3,980,525			3,927,343			3,970,896			4,033,091
Commercial loans		6,808,174			7,357,979			7,679,640			8,356,033			7,870,502			7,309,545			7,395,336
Total loans		12,421,004			13,199,963			13,773,451			14,585,554			13,985,677			13,401,486			13,583,627
Allowance for loan losses		(236,454	)		(245,823	)		(258,446	)		(274,205	)		(281,265	)		(314,191	)		(338,020	)
Total loans, net of allowances		12,184,550			12,954,140			13,515,005			14,311,349			13,704,412			13,087,295			13,245,607

Loans by segment
Individuals		5,612,830			5,841,984			6,093,811			6,229,521			6,115,175			6,091,941			6,188,291
SMEs		2,201,005			2,314,975			2,418,645			2,471,356			2,385,720			2,370,029			2,423,328
Institutional lending		218,018			230,934			216,016			234,824			254,565			262,915			285,090
Total retail lending		8,031,853			8,387,893			8,728,472			8,935,701			8,755,460			8,724,885			8,896,709
Middle-Market & Real estate		2,516,708			2,703,058			2,831,381			2,895,035			2,727,232			2,472,244			2,466,786
Corporate		1,500,669			1,573,148			1,648,671			2,083,141			1,776,296			1,566,971			1,516,471

Customer funds
Demand deposits		2,772,568			3,194,423			3,130,913			2,948,162			3,092,010			3,083,814			3,152,739
Time deposits		8,407,623			8,390,418			8,408,557			9,756,266			8,677,857			8,342,396			7,456,731
Total deposits		11,180,191			11,584,841			11,539,470			12,704,428			11,769,867			11,426,210			10,609,470
Mutual funds (Off balance sheet)		2,669,438			3,033,103			2,533,228			2,199,222			3,085,227			3,342,860			3,478,763
Total customer funds		13,849,629			14,617,944			14,072,698			14,903,650			14,855,094			14,769,070			14,088,233
Loans / Deposits1		91.4	%		93.2	%		98.8	%		93.9	%		96.5	%		94.3	%		102.4	%

Average balances
Avg. interest earning assets		13,539,003			14,241,705			14,681,695			15,959,439			15,742,285			15,147,554			15,184,842
Avg. loans		12,277,279			12,807,117			13,444,859			14,295,443			14,312,882			13,733,919			13,479,883
Avg. assets		17,561,157			18,473,351			19,017,636			20,846,092			20,491,544			19,719,613			19,384,473
Avg. demand deposits		2,807,126			3,019,391			3,007,538			2,996,543			2,952,461			3,087,754			3,079,230
Avg equity		1,345,916			1,279,462			1,322,955			1,446,467			1,517,710			1,495,755			1,528,506
Avg. free funds		4,153,042			4,298,853			4,330,493			4,443,010			4,470,170			4,583,509			4,607,736

Capitalization
Risk weighted assets		13,593,098			14,066,367			15,170,215			15,710,202			13,979,591			13,544,319			13,918,058
Tier I		1,398,183			1,350,580			1,477,245			1,578,043			1,543,039			1,497,019			1,555,148
Tier II		415,905			461,436			514,005			588,657			560,232			535,978			563,856
Regulatory capital		1,814,088			1,812,015			1,991,251			2,166,700			2,103,271			2,032,997			2,119,004
BIS ratio		13.3	%		12.9	%		13.1	%		13.8	%		15.0	%		15.0	%		15.2	%

Profitability & Efficiency
Net interest margin		5.6	%		6.2	%		6.9	%		5.8	%		4.8	%		6.0	%		5.7	%
Efficiency ratio		36.6	%		37.0	%		33.1	%		36.6	%		34.5	%		31.5	%		32.6	%
Avg. Free funds / interest earning assets		30.7	%		30.2	%		29.5	%		27.8	%		28.4	%		30.3	%		30.3	%
Return on avg. equity		25.6	%		32.3	%		40.0	%		25.9	%		20.2	%		28.7	%		28.8	%
Return on avg. assets		2.0	%		2.2	%		2.8	%		1.8	%		1.5	%		2.2	%		2.3	%

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

	Mar-08			Jun-08			Sep-08			Dec-08			Mar-09			Jun-09			Sep-09
Asset quality
Non-performing loans (NPLs)2		—			—			—			—			392,802			415,311			383,172
Past due loans3		135,354			147,874			154,651			160,824			169,220			181,645			175,426
Expected loss4		236,454			245,823			258,446			274,205			281,265			314,191			338,020
NPLs / total loans		—			—			—			—			2.81	%		3.10	%		2.82	%
PDL / total loans		1.09	%		1.12	%		1.12	%		1.10	%		1.21	%		1.36	%		1.29	%
Coverage of NPLs (Loan loss allowance / NPLs)		—			—			—			—			71.60	%		75.65	%		88.22	%
Loan loss allowance / PDLs		174.7	%		166.2	%		167.1	%		170.5	%		166.2	%		173.0	%		192.7	%
Expected loss (Loan loss allowances / Loans)		1.90	%		1.86	%		1.88	%		1.88	%		2.01	%		2.34	%		2.49	%
Cost of credit (prov. expense / loans)		1.98	%		2.14	%		2.11	%		2.29	%		2.60	%		2.87	%		2.33	%

Network
Branches		496			498			502			507			501			502			502
ATMs		1,989			2,016			1,987			1,958			1,929			1,929			1,991

Market information (period-end)
Net income per share (Ch$)		0.46			0.55			0.70			0.50			0.41			0.57			0.58
Net income per ADR (US$)		1.08			1.09			1.32			0.82			0.73			1.12			1.11
Stock price		21.9			21.4			21.9			20.5			19.1			23.9			30.4
ADR price		52.3			43.0			42.8			35.0			34.4			46.7			57.5
Market capitalization (US$mn)		9,479			7,801			7,761			6,353			6,230			8,468			10,436
Shares outstanding		188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1
ADRs (1 ADR = 1,039 shares)		181.4			181.4			181.4			181.4			181.4			181.4			181.4

Other Data
Quarterly inflation rate5		1.02	%		2.17	%		3.63	%		2.21	%		(2.30	)%		(0.13	)%		(0.47	)%
Avg. overnight interbank rate (nominal)		6.22	%		6.39	%		7.58	%		8.24	%		5.49	%		1.40	%		0.46	%
Avg. 10 year Central Bank yield (real)		2.84	%		3.06	%		3.39	%		3.22	%		2.60	%		2.86	%		2.88	%
Avg. 10 year Central Bank yield (nominal)		6.46	%		6.98	%		7.74	%		6.50	%		5.09	%		5.63	%		5.70	%
Observed Exchange rate (Ch$/US$) (period-end)		439.1			520.1			552.5			629.1			582.1			529.07			546.07

1 Ratio = Loans - marketable securities / Time deposits + demand deposits

2 Capital + future interest of all loans with one installment 90 days or more overdue.

3 All instalments overdue more than 90 days

4 Based on internal credit models and SBIF guidelines. Banks must have a 100% coverage of expected loss

5 Calculated using the variation of the Unidad de Fomento (UF) in the period

Investor Relations Department

Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,

email: rmorenoh@santander.cl

BANCO SANTANDER CHILE Y FILIALES

ESTADOS DE SITUACIÓN FINANCIERA CONSOLIDADOS

	30 de			30 de
	Septiembre			Septiembre			31 de Diciembre			1° de Enero
	2009			2008			2008			2008
	(Millones)			(Millones)			(Millones)			(Millones)
	$			$			$			$
ACTIVOS

Efectivo y depósitos en bancos		906.871			854.459			855.411			1.108.637
Operaciones con liquidación en curso		405.829			513.843			335.405			316.240
Instrumentos para negociación		733.319			891.069			1.166.426			1.093.445
Contratos de retrocompra y préstamos de valores		16.086			8.805			-			33.999
Contratos de derivados financieros		1.428.496			1.296.402			1.846.509			780.775
Adeudado por bancos		56.674			76.015			95.499			45.961
Créditos y cuentas por cobrar a clientes		13.245.608			13.515.005			14.311.349			12.022.275
Instrumentos de inversión disponibles para la venta		1.903.217			1.316.741			1.580.240			779.635
Instrumentos de inversión hasta el vencimiento		-			-			-			-
Inversiones en sociedades		7.184			7.926			7.277			7.301
Intangibles		64.858			65.090			68.232			56.224
Activo fijo		186.763			198.133			200.389			202.489
Impuestos corrientes		4.519			12.654			18.715			2.499
Impuestos diferidos		105.422			124.800			88.825			80.989
Otros activos		541.467			662.024			508.655			460.282

TOTAL ACTIVOS		19.606.313			19.542.966			21.082.932			16.990.751
PASIVOS

Depósitos y otras obligaciones a la vista		3.152.739			3.130.913			2.948.162			2.867.934
Operaciones con liquidación en curso		254.983			308.345			142.552			135.219
Contratos de retrocompra y préstamos de valores		807.034			739.967			562.223			307.630
Depósitos y otras captaciones a plazo		7.456.731			8.408.557			9.756.266			7.887.897
Contratos de derivados financieros		1.318.230			1.122.579			1.469.724			778.217
Obligaciones con bancos		1.741.380			1.495.608			1.425.067			1.099.457
Instrumentos de deuda emitidos		2.717.508			2.372.389			2.651.372			2.154.996
Otras obligaciones financieras		145.925			130.521			131.318			175.667
Impuestos corrientes		60.503			850			791			16.067
Impuestos diferidos		2.149			57.388			19.437			11.084
Provisiones		151.724			137.460			166.719			50.102
Otros pasivos		211.372			220.667			293.733			118.550

TOTAL PASIVOS		18.020.278			18.125.244			19.567.364			15.602.820
PATRIMONIO

Atribuible a tenedores patrimoniales del banco:		1.555.148			1.393.361			1.489.689			1.369.797
Capital		891.303			818.535			891.303			818.535
Reservas		(16.960	)		(21.234	)		(123.726	)		(20.914	)
Cuentas de valoración		(33.001	)		(31.204	)		(7.552	)		(9.475	)
Utilidades retenidas:		713.806			627.264			729.664			581.651
Utilidades retenidas de ejercicios anteriores		508.045			381.030			413.053			581.651
Utilidad (pérdida) del ejercicio		293.944			321.408			415.055			-
Menos: Provisión para dividendos mínimos		(88.183	)		(75.174	)		(98.444	)		-

Interés minoritario		30.887			24.361			25.879			18.134

TOTAL PATRIMONIO		1.586.035			1.417.722			1.515.568			1.387.931
TOTAL PASIVOS Y PATRIMONIO		19.606.313			19.542.966			21.082.932			16.990.751

BANCO SANTANDER CHILE Y FILIALES

ESTADOS CONSOLIDADOS DE RESULTADOS

Por los períodos terminados el:

	30 de Septiembre			30 de Septiembre
	2009			2008
	(Millones)			(Millones)
	$			$
RESULTADOS OPERACIONALES
Ingresos por intereses y reajustes		865.415			1.520.567
Gastos por intereses y reajustes		(234.278	)		(860.704	)

Ingreso neto por intereses y reajustes		631.137			659.863

Ingresos por comisiones		235.424			219.270
Gastos por comisiones		(45.892	)		(38.244	)

Ingreso neto de comisiones		189.532			181.026

Utilidad neta operaciones financieras		52.013			171.255
Utilidad (pérdida) de cambio neta		77.968			(101.771	)
Otros ingresos operacionales		8.645			15.541

Total Ingresos operacionales		959.295			925.914

Provisiones por riesgo de crédito		(266.093	)		(204.405	)

INGRESO OPERACIONAL NETO		693.202			721.509

Remuneraciones y gastos del personal		(167.846	)		(179.228	)
Gastos de administración		(102.661	)		(101.077	)
Depreciaciones y amortizaciones		(34.655	)		(36.433	)
Deterioro		-			-
Otros gastos operacionales		(29.632	)		(32.353	)

TOTAL GASTOS OPERACIONALES		(334.794	)		(349.091	)
RESULTADO OPERACIONAL		358.408			372.418

Resultado por inversiones en sociedades		863			1.291

Resultado antes de impuesto a la renta		359.271			373.709

Impuesto a la renta		(60.514	)		(46.580	)

UTILIDAD (PÉRDIDA) CONSOLIDADA DEL EJERCICIO		298.757			327.129

Atribuible a:
Tenedores patrimoniales del Banco		293.944			321.408
Interés Minoritario		4.813			5.721

Utilidad por acción atribuible a tenedores patrimoniales del Banco:
(expresada en pesos)
Utilidad básica		1,5598			1,7056
Utilidad diluida		1,5598			1,7056

BANCO SANTANDER CHILE Y FILIALES

ESTADOS CONSOLIDADOS DE RESULTADOS INTEGRALES

Por los períodos terminados el:

	30 de			30 de
	Septiembre			Septiembre
	2009			2008
	(Millones)			(Millones)
	$			$

UTILIDAD (PÉRDIDA) CONSOLIDADA DEL EJERCICIO		298.757			327.129

OTROS RESULTADOS INTEGRALES

Instrumentos de inversión disponibles para la venta		( 2.791	)		(26.477	)
Coberturas de flujo de efectivo		(27.502	)		278
		-			-
Otros resultados integrales antes de impuesto a la renta		(30.293	)		(26.199	)

Impuesto a la renta relacionado con otros resultados integrales		5.150			4.470

Total de otros resultados integrales		(25.143	)		(21.729	)

RESULTADOS INTEGRALES CONSOLIDADOS DEL EJERCICIO		273.614			305.400

Atribuible a :
Tenedores patrimoniales del Banco		268.495			299.679
Interés Minoritario		5.119			5.721

BANCO SANTANDER CHILE

ESTADO DE CAMBIOS EN EL PATRIMONIO

Por los períodos terminados el:

(en millones de pesos)

				RESERVAS						CUENTAS DE VALORACIÓN										UTILIDADES RETENIDAS
										Instrumentos de										Utilidades
				Reservas y otras			Fusión de			Inversión										retenidas de						Provisión para			Total atribuible a
				utilidades			sociedades bajo			Disponibles para la			Coberturas de					Impuesto a la		ejercicios			Utilidades del			dividendo			tenedores			Interés			TOTAL
		Capital		retenidas			control común			Venta			Flujo de Efectivo			Otros conceptos		renta		anteriores			ejercicio			mínimo			patrimoniales			Minoritario			PATRIMONIO


Patrimonio al 31 de Diciembre 2007			818.535		49.372			(2.042	)		(5.548	)		(5.867	)		-		1.940		273.004			308.647			-			1.438.041			20.047			1.458.088
Distribución resultado ejercicio anterior			-					-			-			-			-		-		308.647			(308.647	)		-			-			-			-
	Sub-total		818.535		49.372			(2.042	)		(5.548	)		(5.867	)		-		1.940		581.651			-			-			1.438.041			20.047			1.458.088
Efectos por primera Aplicación de IFRS			-		(68.244	)		-			-			-			-		-		-			-			-			(68.244	)		(1.913	)		(70.157	)
Patrimonio al 01 de Enero 2008			818.535		(18.872	)		(2.042	)		(5.548	)		(5.867	)		-		1.940		581.651			-			-			1.369.797			18.134			1.387.931

Ajuste circular N° 3443 dividendo minimo 2008			-		-			-			-			-			-		-		-			-			(92.594	)		(92.594	)		-			(92.594	)
Dividendos / Retiros realizados			-		-			-			-			-			-		-		(200.619	)		-			92.594			(108.025	)		(33	)		(108.058	)
Otros movimientos patrimoniales			-		(320	)		-			-			-			-		-		(2	)		-			-			(322	)		539			217
Provisión para dividendos mínimos			-		-			-			-			-			-		-		-			-			(75.174	)		(75.174	)		-			(75.174	)
	Sub-total		-		(320	)		-			-			-			-		-		(200.621	)		-			(75.174	)		(276.115	)		506			(275.609	)
Otros resultados integrales			-		-			-			(26.774	)		594			-		4.451		-			-			-			(21.729	)		-			(21.729	)
Resultado del ejercicio			-		-			-			-			-			-		-		-			321.408			-			321.408			5.721			327.129

	Sub-total		-		-			-			(26.774	)		594			-		4.451		-			321.408			-			299.679			5.721			305.400

Patrimonio al 30 de Septiembre 2008			818.535		(19.192	)		(2.042	)		(32.322	)		(5.273	)		-		6.391		381.030			321.408			(75.174	)		1.393.361			24.361			1.417.722

Patrimonio al 31 de Diciembre 2008			891.303		(121.684	)		(2.042	)		(19.972	)		10.873			-		1.547		413.053			415.055			(98.444	)		1.489.689			25.879			1.515.568
Distribución resultado ejercicio anterior			-		-			-			-			-			-		-		415.055			(415.055	)		-			-			-			-
	Sub-total		891.303		(121.684	)		(2.042	)		(19.972	)		10.873			-		1.547		828.108			-			(98.444	)		1.489.689			25.879			1.515.568
Reposición corrección monetaria 2008			-		106.766			-			-			-			-		-		(106.766	)		-			-			-			-			-
Patrimonio al 01 de Enero 2009			891.303		(14.918	)		(2.042	)		(19.972	)		10.873			-		1.547		721.342			-			(98.444	)		1.489.689			25.879			1.515.568

Aumento o disminución de capital y reservas			-		-			-			-			-			-		-		-			-			-			-			5.600			5.600
Dividendos / Retiros realizados			-		-			-			-			-			-		-		(213.295	)		-			98.444			(114.851	)		(5.174	)		(120.025	)
Otros movimientos patrimoniales			-		-			-			-			-			-		-		(2	)		-			-			(2	)		(537	)		(539	)
Provisión para dividendos mínimos			-		-			-			-			-			-		-		-			-			(88.183	)		(88.183	)		-			(88.183	)
	Sub-total		-		-			-			-			-			-		-		(213.297	)		-			10.261			(203.036	)		(111	)		(203.147	)
Otros resultados integrales			-		-			-			(3.158	)		(27.502	)		-		5.211		-			-			-			(25.449	)		306			(25.143	)
Resultado del ejercicio			-		-			-			-			-			-		-		-			293.944			-			293.944			4.813			298.757
	Sub-total		-		-			-			(3.158	)		(27.502	)		-		5.211		-			293.944			-			268.495			5.119			273.614

Patrimonio al 30 de Septiembre 2009			891.303		(14.918	)		(2.042	)		(23.130	)		(16.629	)		-		6.758		508.045			293.944			(88.183	)		1.555.148			30.887			1.586.035


Dividendos distribuídos:

		Resultado		Destinados a
		atribuible a		reservas o									Dividendo por
		tenedores		utilidades			Destinado a			Porcentaje			acción
Período		patrimoniales		retenidas			Dividendos			Distribuído			(en pesos)

- Año 2007 (Junta Accionistas Abril 2008)			308.647		108.028			200.619			65	%		1,065

- Año 2008 (Junta Accionistas Abril 2009)			328.146		114.851			213.295			65	%		1,132

BANCO SANTANDER CHILE Y FILIALES

ESTADOS CONSOLIDADOS DE FLUJOS DE EFECTIVO

Por los períodos terminados el:

	30 de			30 de
	Septiembre			Septiembre
	2009			2008
	(Millones)			(Millones)
	$			$

FLUJOS ORIGINADOS POR ACTIVIDADES OPERACIONALES:

UTILIDAD (PÉRDIDA) CONSOLIDADA DEL EJERCICIO		298.757			327.129
Cargos (abonos) a resultados que no significan movimiento de efectivo:
Depreciaciones y amortizaciones		34.655			36.433
Provisiones por créditos, cuentas por cobrar a clientes y castigos		297.615			204.405
Ajuste a valor de mercado de instrumentos financieros		(40.472	)		(2.109	)
(Utilidad) pérdida por inversiones en sociedades		(863	)		(1.291	)
(Utilidad) pérdida en venta de activos recibidos en pago		(1.509	)		(1.786	)
(Utilidad) pérdida en venta de participación en otras sociedades		( 1.847	)		( 4.348	)
(Utilidad) pérdida en venta de activos fijos		(432	)		( 163	)
Castigo de activos recibidos en pago		5.632			3.671
Otros cargos (abonos) que no significan movimiento de efectivo		38.190			28.543
Variación neta de intereses, reajustes y comisiones devengados sobre activos y pasivos		(71.605	)		(77.852	)
Total flujos operacionales		558.121			512.632
FLUJO ORIGINADO POR ACTIVIDADES DE INVERSIÓN:
(Aumento) disminución neta de créditos y cuentas por cobrar		1.013.631			(1.506.759	)
(Aumento) disminución neta de inversiones		126.366			(497.309	)
Compras de activos fijos		(11.978	)		(9.252	)
Ventas de activo fijo		12.234			8.934
Inversiones en sociedades		-			3.274
(Aumento) disminución de inversiones en sociedades		(32	)		1.400
Dividendos recibidos de inversiones en sociedades		790			638
Ingresos por bienes recibidos en pago		26.877			16.601
Aumento (disminución) neta de otros activos y pasivos		(166.977	)		(167.692	)
Total flujos de inversión		1.000.911			(2.150.165	)
FLUJO ORIGINADO POR ACTIVIDADES DE FINANCIAMIENTO:
Aumento (disminución) de acreedores en cuenta corriente		137.082			171.287
Aumento (disminución) de depósitos y captaciones		(2.283.192	)		520.661
Aumento (disminución) de otras obligaciones a la vista o a plazo		82.157			(21.812	)
Aumento (disminución) de obligaciones por intermediación de documento		230.713			567.965
Aumento (disminución) de préstamos del exterior corto y largo plazo		322.286			367.570
Emisión de letras de crédito		4.506			-
Rescate de letras de crédito		(82.264	)		(236.271	)
Aumento (disminución) de otros pasivos de corto plazo		14.264			(35.474	)
Préstamos obtenidos del Banco Central de Chile (corto plazo)		-			181
Pago de préstamos del Banco Central de Chile (corto y largo plazo)		(970	)		(1.000	)
Emisión de bonos		308.518			264.923
Rescate de bonos		(61.101	)		(15.433	)
Otros préstamos obtenidos a corto y largo plazo		(8.767	)		26.753
Aumento (disminución) de capital		5.600			-
Dividendos pagados		(218.411	)		(201.518	)
Total Flujos de financiamiento		(1.549.579	)		1.407.832

VARIACION EFECTIVO Y EFECTIVO EQUIVALENTE DURANTE EL PERIODO		9.453			( 229.701	)
EFECTIVO INICIAL DE EFECTIVO Y EFECTIVO EQUIVALENTE		1.048.264			1.289.658
SALDO FINAL DE EFECTIVO Y EFECTIVO EQUIVALENTE		1.057.717			1.059.957

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES:

La Superintendencia de Bancos e Instituciones Financieras (“SBIF”) en conjunto con otras superintendencias y otros organismos reguladores en Chile acordaron un plan de convergencia a Normas Internaciones de Información Financiera (“NIIF”) con el propósito de internacionalizar los modelos de reporte financiero para compañías públicas en Chile. En el marco del plan estratégico, la SBIF, a través de su Circular Nº 3.410 del 9 de noviembre de 2007, complementada posteriormente por la Circular Nº 3.443 del 21 de agosto de 2008, dio a conocer el nuevo “Compendio de Normas Contables”, en el cual contiene los nuevos estándares de contabilidad y reporte para la industria financiera que se aplicarán a contar del 1º de Enero de 2009, considerando las normas de carácter transitorio establecidas en el Capítulo E de dicho compendio.

Por disposiciones legales, los bancos deben utilizar los criterios contables dispuestos por la SBIF y en todo aquello que no sea tratado por ella ni se contraponga con sus instrucciones, deben ceñirse a los criterios contables de general aceptación, que corresponden a las normas técnicas emitidas por el Colegio de Contadores de Chile A.G., coincidentes con los estándares internacionales de contabilidad e información financiera acordados por el Internacional Accounting Standards Board (“IASB”). En caso de existir discrepancias entre los principios contables y los criterios contables emitidos por la SBIF (Compendio de Normas Contables), primarán estas últimas.

Como resultado de lo anterior, el Banco estableció un plan para la transición a las nuevas normas contables que incluye, entre otros aspectos, el análisis de las diferencias de criterios contables, la selección de los criterios contables a aplicar en los casos en que se permitan tratamientos alternativos y la evaluación de las modificaciones de procedimientos y sistemas de información.

De acuerdo a este plan de transición, se han aplicado retroactivamente al 1° de Enero de 2008 las normas del nuevo Compendio de Normas Contables, confeccionándose un balance de apertura a dicha fecha. Asimismo, con el objetivo de presentar estados financieros comparativos durante el año 2009, el Banco confeccionó un set de estados financieros pro-forma para el año 2008.

A continuación se detallan y explican los principales impactos que origina la migración a estas nuevas normas contables, ya sea a nivel de balance como resultados.

a) Conciliación del Patrimonio de acuerdo al nuevo Compendio de Normas Contables:

Los principales ajustes que origina la migración al nuevo Compendio de Normas Contables en el Patrimonio son los siguientes:

		Total Patrimonio
		Al 1° Enero de			Al 30 Septiembre			Al 31 Diciembre de
		2008			de 2008			2008
	Explic.	MM$			MM$			MM$

Patrimonio antes de cambios normativos			1.458.088			1.500.504			1.602.610

Ajustes:
Perímetro de consolidación	i		(14.454	)		(10.065	)		(9.712	)
Sociedades de apoyo	ii		506			364			719
Corrección monetaria	iii		-			(24.626	)		(30.493	)
Activo fijo e intangibles	iv		(64.494	)		(59.668	)		(58.613	)
Bienes recibidos o adjudicados en pago	v		(929	)		(631	)		(408	)
Castigos de colocaciones	vi		(2.205	)		(3.179	)		(4.235	)
Impuestos diferidos	vii		11.419			15.023			15.700
Sub-total			(70.157	)		(82.782	)		(87.042	)

Patrimonio según nuevo Compendio de Normas Contables			1.387.931			1.417.722			1.515.568

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

Tal como se comentó anteriormente, estos ajustes se generan por la adopción del nuevo Compendio de Normas Contables de la SBIF, por lo tanto estos no corresponden al reconocimiento de errores de ejercicios anteriores de acuerdo a la NIC 8.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

b) Conciliación del Resultado de acuerdo al nuevo Compendio de Normas Contables:

Los principales ajustes que origina la migración al nuevo Compendio de Normas Contables en el Resultado son los siguientes:

		Resultado Consolidado
		Al 30 Septiembre			Al 31 Diciembre
		de			De
		2008			2008
	Explic.	MM$			MM$

Resultado antes de cambios normativos			252.552			331.017
Ajustes:
Perímetro de consolidación	i		4.389			4.742
Sociedades de apoyo	ii		(142	)		213
Corrección monetaria	iii		62.576			78.027
Activo fijo e Intangibles	iv		4.286			5.881
Bienes recibido o adjudicados en pago	v		298			521
Castigos de colocaciones	vi		(974	)		(2.030	)
Impuestos diferidos	vii		3.604			4.281
Sub-total			74.577			91.635

Resultado según nuevo Compendio de Normas Contables			327.129			422.652

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

c) Balance de Apertura de acuerdo al nuevo Compendio de Normas Contables:

Tal como se comentó anteriormente, al 1° de Enero de 2008 se aplicaron retroactivamente las normas del nuevo Compendio de Normas Contables con el objetivo de elaborar el respectivo balance de apertura bajo estas nuevas normas contables.

A continuación se presenta la conciliación de los saldos del Estado de Situación Financiera, debiendo entenderse por:

Saldos de cierre:

Son aquellos que figuran en los estados financieros consolidados del Banco y sus filiales al 1° de Enero de 2008, los cuales se prepararon conforme a los criterios y principios contables anteriormente vigentes.

Ajustes:

Cambios con origen principalmente en los criterios de valorización y políticas contables modificadas por la nueva normativa. Dentro de este concepto se incluyen las modificaciones al perímetro de consolidación que establece el nuevo Compendio de normas Contables.

Saldos de Apertura:

Son aquellos que resultan de considerar el efecto de los ajustes en los saldos de cierre.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

c) Balance de Apertura de acuerdo al nuevo Compendio de Normas Contables, continuación:

	Al 1° de Enero 2008
	Saldos de Cierre			Ajustes (*)			Saldos de Apertura
	(millones)			(millones)			(millones)
	$			$			$
ACTIVOS

Efectivo y depósitos en bancos		1.108.444			193			1.108.637
Operaciones con liquidación en curso		316.240			-			316.240
Instrumentos para negociación		1.090.004			3.441			1.093.445
Contratos de retrocompra y préstamos de valores		33.999			-			33.999
Contratos de derivados financieros		780.775			-			780.775
Adeudado por bancos		45.961			-			45.961
Créditos y cuentas por cobrar a clientes		12.028.053			(5.778	)		12.022.275
Instrumentos de inversión disponibles para la venta		779.635			-			779.635
Inversiones en sociedades		6.795			506			7.301
Intangibles		56.187			37			56.224
Activo fijo		245.619			(43.130	)		202.489
Impuestos corrientes		1.933			566			2.499
Impuestos diferidos		61.260			19.729			80.989
Otros activos		474.091			(13.809	)		460.282

TOTAL ACTIVOS		17.028.996			(38.245	)		16.990.751

PASIVOS

Depósitos y otras obligaciones a la vista		2.868.769			(835	)		2.867.934
Operaciones con liquidación en curso		135.219			-			135.219
Contratos de retrocompra y préstamos de valores		308.651			(1.021	)		307.630
Depósitos y otras captaciones a plazo		7.887.897			-			7.887.897
Contratos de derivados financieros		778.217			-			778.217
Obligaciones con bancos		1.099.443			14			1.099.457
Instrumentos de deuda emitidos		2.154.996			-			2.154.996
Otras obligaciones financieras		147.868			27.799			175.667
Impuestos corrientes		15.897			170			16.067
Impuestos diferidos		10.877			207			11.084
Provisiones		46.376			3.726			50.102
Otros pasivos		116.698			1.852			118.550

TOTAL PASIVOS		15.570.908			31.912			15.602.820

PATRIMONIO

Atribuible a tenedores patrimoniales del banco:		1.438.041			(68.244	)		1.369.797
Capital		818.535			-			818.535
Reservas		47.330			(68.244	)		(20.914	)
Cuentas de valoración		(9.475	)		-			(9.475	)
Utilidades retenidas		581.651			-			581.651
Utilidades retenidas de ejercicios anteriores		581.651			-			581.651
Utilidad (pérdida) del ejercicio		-			-			-
Menos: Provisión para dividendos mínimos		-			-			-

Interés minoritario		20.047			(1.913	)		18.134

TOTAL PATRIMONIO		1.458.088			(70.157	)		1.387.931

TOTAL PASIVOS Y PATRIMONIO		17.028.996			(38.245	)		16.990.751

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

d) Estados de Situación Financiera pro-forma:

Con el objetivo de presentar estados financieros comparativos durante el año 2009, el Banco confeccionó un set de estados financieros pro-forma para el año 2008, a continuación se presenta la formulación de los Estados de Situación Financiera pro-forma al 30 de Septiembre y 31 de Diciembre de 2008, respectivamente:

	Al 30 de Septiembre 2008									Al 31 de Diciembre 2008
	Norma						Compendio de									Compendio de
	Antigua			Ajustes (*)			Normas Contables			Norma Antigua			Ajustes (*)			Normas Contables
	(millones)			(millones)			(millones)			(millones)			(millones)			(millones)
	$			$			$			$			$			$
ACTIVOS
Efectivo y depósitos en bancos		854.098			361			854.459			854.838			573			855.411
Operaciones con liquidación en curso		513.843			-			513.843			335.405			-			335.405
Instrumentos para negociación		891.070			(1	)		891.069			1.161.631			4.795			1.166.426
Contratos de retrocompra y préstamos de valores		8.805			-			8.805			-			-			-
Contratos de derivados financieros		1.296.402			-			1.296.402			1.846.509			-			1.846.509
Adeudado por bancos		76.015			-			76.015			95.499			-			95.499
Créditos y cuentas por cobrar a clientes		13.521.962			(6.957	)		13.515.005			14.319.370			(8.021	)		14.311.349
Instrumentos de inversión disponibles para la venta		1.316.741			-			1.316.741			1.580.240			-			1.580.240
Inversiones en sociedades		7.186			740			7.926			6.990			287			7.277
Intangibles		69.534			( 4.444	)		65.090			73.089			(4.857	)		68.232
Activo fijo		253.918			( 55.785	)		198.133			260.105			(59.716	)		200.389
Impuestos corrientes		12.275			379			12.654			18.289			426			18.715
Impuestos diferidos		101.876			22.924			124.800			64.821			24.004			88.825
Otros activos		668.293			(6.269	)		662.024			520.348			(11.693	)		508.655
TOTAL ACTIVOS		19.592.018			(49.052	)		19.542.966			21.137.134			(54.202	)		21.082.932
PASIVOS
Depósitos y otras obligaciones a la vista		3.132.432			(1.519	)		3.130.913			2.949.757			(1.595	)		2.948.162
Operaciones con liquidación en curso		308.345			-			308.345			142.552			-			142.552
Contratos de retrocompra y préstamos de valores		741.043			(1.076	)		739.967			563.234			(1.011	)		562.223
Depósitos y otras captaciones a plazo		8.408.557			-			8.408.557			9.756.266			-			9.756.266
Contratos de derivados financieros		1.122.579			-			1.122.579			1.469.724			-			1.469.724
Obligaciones con bancos		1.495.606			2			1.495.608			1.425.065			2			1.425.067
Instrumentos de deuda emitidos		2.372.389			-			2.372.389			2.651.372			-			2.651.372
Otras obligaciones financieras		101.998			28.523			130.521			103.278			28.040			131.318
Impuestos corrientes		423			427			850			163			628			791
Impuestos diferidos		56.892			496			57.388			18.766			671			19.437
Provisiones		132.216			5.244			137.460			162.165			4.554			166.719
Otros pasivos		219.034			1.633			220.667			292.182			1.551			293.733
TOTAL PASIVOS		18.091.514			33.730			18.125.244			19.534.524			32.840			19.567.364

PATRIMONIO

Atribuible a tenedores patrimoniales del banco:		1.477.196			(83.834	)		1.393.361			1.578.045			(88.356	)		1.489.689
Capital		818.535			-			818.535			891.303			-			891.303
Reservas		133.429			(154.663	)		(21.234	)		51.539			(175.265	)		(123.726	)
Cuentas de valoración		(31.204	)		-			(31.204	)		(7.552	)		-			(7.552	)
Utilidades retenidas		556.436			70.828			627.264			642.755			86.909			729.664
Utilidades retenidas de ejercicios anteriores		381.030			-			381.030			413.053			-			413.053
Utilidad (pérdida) del ejercicio		250.580			70.828			321.408			328.146			86.909			415.055
Menos: Provisión para dividendos mínimos		(75.174	)		-			(75.174	)		(98.444	)		-			(98.444	)
Interés minoritario		23.308			1.053			24.361			24.565			1.314			25.879
TOTAL PATRIMONIO		1.500.504			(82.782	)		1.417.722			1.602.610			(87.042	)		1.515.568

TOTAL PASIVOS Y PATRIMONIO		19.592.018			(49.052	)		19.542.966			21.137.134			(54.202	)		21.082.932

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

e) Estados de Resultados pro-forma:

Tal como se comentaba en el punto anterior, el Banco confeccionó un set de estados financieros pro-forma para el año 2008 con ánimo de presentar información comparativa, a continuación se presenta la formulación de los Estados de Resultados pro-forma por los períodos terminados el 30 de Septiembre y el 31 de Diciembre de 2008, respectivamente:

	Al 30 de Septiembre 2008									Al 31 Diciembre 2008
	Norma						Compendio de			Norma						Compendio de
	Antigua			Ajustes (*)			Normas Contables			Antigua			Ajustes (*)			Normas Contables
	(millones)			(millones)			(millones)			(millones)			(millones)			(millones)
	$			$			$			$			$			$
RESULTADOS OPERACIONALES
Ingresos por intereses y reajustes		1.520.729			(162	)		1.520.567			2.061.112			234			2.061.346
Gastos por intereses y reajustes		(857.143	)		(3.561	)		(860.704	)		(1.164.071	)		(5.209	)		(1.169.280	)
Ingreso neto por intereses y reajustes		663.586			(3.723	)		659.863			897.041			(4.975	)		892.066
Ingresos por comisiones		203.913			15.357			219.270			276.433			19.536			295.969
Gastos por comisiones		(38.244	)		-			(38.244	)		(52.840	)		-			(52.840	)
Ingreso neto de comisiones		165.669			15.357			181.026			223.593			19.536			243.129
Utilidad neta de operaciones financieras		171.011			244			171.255			273.084			393			273.477
Utilidad (pérdida) de cambio neta		(101.771	)		-			(101.771	)		(187.042	)		-			(187.042	)
Otros ingresos operacionales		13.203			2.338			15.541			16.512			1.710			18.222
Total Ingresos Operacionales		911.698			14.216			925.914			1.223.188			16.664			1.239.852
Provisiones por riesgo de crédito		(203.431	)		(974	)		(204.405	)		(285.953	)		(2.030	)		(287.983	)

INGRESO OPERACIONAL NETO		708.267			13.242			721.509			937.235			14.634			951.869
Remuneraciones y gastos de personal		(150.028	)		(29.200	)		(179.228	)		(209.134	)		(37.641	)		(246.775	)
Gastos de administración		(122.905	)		21.828			(101.077	)		(161.977	)		28.295			(133.682	)
Depreciaciones y amortizaciones		(38.590	)		2.157			(36.433	)		(51.944	)		4.317			(47.627	)
Otros gastos operacionales		(32.961	)		608			(32.353	)		(42.259	)		581			(41.678	)
Total Gastos Operacionales		(344.484	)		(4.607	)		(349.091	)		(465.314	)		(4.448	)		(469.762	)

RESULTADO OPERACIONAL		363.783			8.635			372.418			471.921			10.186			482.107
Resultado por inversiones en sociedades		1.057			234			1.291			851			(219	)		632
Corrección Monetaria		(62.576	)		62.576			-			(78.027	)		78.027			-
Resultado antes de Impuesto a la Renta		302.264			71.445			373.709			394.745			87.994			482.739

Impuesto a la renta		(49.712	)		3.132			(46.580	)		(63.728	)		3.641			(60.087	)

UTILIDAD CONSOLIDADA DEL EJERCICIO		252.552			74.577			327.129			331.017			91.635			422.652

Atribuible a:
Tenedores patrimoniales del Banco		250.580			70.828			321.408			328.146			86.909			415.055
Interés minoritario		1.972			3.749			5.721			2.871			4.726			7.597

Utilidad por acción atribuible a tenedores patrimoniales del Banco: (expresada en pesos)
Utilidad básica		1,3297			-			1,7056			1,741			-			2,203
Utilidad diluida		1,3297			-			1,7056			1,741			-			2,203

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

f) Estado de Flujo de Efectivo pro-forma:

Con el objetivo de entregar una conciliación entre el Estado de Flujos de Efectivo presentado bajo las anteriores normas contables por el período terminado el 30 de Septiembre de 2008 y el incluido en estos estados financieros intermedios, a continuación se presenta la formulación de este estado pro-forma:

	Al 30 de Septiembre 2008
							Compendio de
	Norma Antigua			Ajustes (*)			Normas Contables
	(millones)			(millones)			(millones)
	$			$			$
FLUJOS ORIGINADOS POR ACTIVIDADES OPERACIONALES :

UTILIDAD (PÉRDIDA) CONSOLIDADA DEL EJERCICIO		252.552			74.577			327.129
Cargos (abonos) a resultados que no significan movimiento de efectivo:
Depreciaciones y amortizaciones		38.590			(2.157	)		36.433
Provisiones por créditos cuentas por cobrar a clientes y castigos		231.603			(27.198	)		204.405
Ajuste a valor de mercado de instrumentos financieros		( 962	)		(1.147	)		(2.109	)
(Utilidad) pérdida por inversiones en sociedades		(1.057	)		(234	)		(1.291	)
(Utilidad) pérdida en venta de activos recibidos en pago		(7.025	)		5.239			(1.786	)
Utilidad en venta de participación en otras sociedades		-			( 4.348	)		(4.348	)
(Utilidad) pérdida en venta de activos fijos		181			(344	)		(163	)
Castigo de activos recibidos en pago		3.887			(216	)		3.671
Corrección monetaria		62.576			(62.576	)		-
Otros cargos (abonos) que no significan movimiento de efectivo		71.697			(43.154	)		28.543
Variación neta de intereses, reajustes y comisiones devengados sobre activos y pasivos		(74.979	)		(2.873	)		(77.852	)
Total Flujos Operacionales		577.063			(64.431	)		512.632
FLUJO ORIGINADO POR ACTIVIDADES DE INVERSIÓN :
(Aumento) disminución neta de créditos y cuentas por cobrar		(898.993	)		(607.766	)		(1.506.759	)
(Aumento) disminución neta de inversiones		(299.277	)		(198.032	)		(497.309	)
Compras de activos fijos		(9.253	)		1			(9.252	)
Ventas de activo fijo		1.647			7.287			8.934
Inversiones en sociedades		3.472			( 198	)		3.274
(Aumento) disminución de inversiones en sociedades		10.926			(9.526	)		( 1.400	)
Dividendos recibidos de inversiones en sociedades		607			31			638
Ingresos por bienes recibidos en pago		16.540			61			16.601
Aumento (disminución) neta de otros activos y pasivos		(159.997	)		(7.695	)		(167.692	)
Total Flujos de Inversión		(1.334.328	)		(815.837	)		(2.150.165	)
FLUJO ORIGINADO POR ACTIVIDADES DE FINANCIAMIENTO :
Aumento (disminución) de acreedores en cuenta corriente		28.341			142.946			171.287
Aumento (disminución) de depósitos y captaciones		(26.528	)		547.189			520.661
Aumento (disminución) de otras obligaciones a la vista o a plazo		(68.185	)		46.373			(21.812	)
Aumento (disminución) de obligaciones por intermediación de documento		429.275			138.690			567.965
Aumento (disminución) de préstamos del exterior corto y largo plazo		291.575			75.995			367.570
Rescate de letras de crédito		(236.270	)		(1	)		(236.271	)
Aumento (disminución) de otros pasivos de corto plazo		(42.356	)		6.882			(35.474	)
Préstamos obtenidos del Banco Central de Chile (corto plazo)		180			1			181
Pago de préstamos del Banco Central de Chile (corto y largo plazo)		(1.276	)		276			(1.000	)
Emisión de bonos		264.924			(1	)		264.923
Rescate de bonos		(15.433	)		-			(15.433	)
Otros préstamos obtenido a largo plazo		26.248			505			26.753
Dividendos pagados		(211.032	)		9.514			(201.518	)
Total Flujos de Financiamiento		439.463			968.369			1.407.832
Sub-total		(317.802	)		88.101			(229.701	)
EFECTO DE INFLACION SOBRE EFECTIVO Y EFECTIVO EQUIVALENTE		(1.556	)		1.556			-
VARIACION EFECTIVO Y EFECTIVO EQUIVALENTE DURANTE EL PERIODO		(319.358	)		89.657			(229.701
SALDO INICIAL DE EFECTIVO Y EFECTIVO EQUIVALENTE		1.378.954			(89.296	)		1.289.658
SALDO FINAL DE EFECTIVO Y EFECTIVO EQUIVALENTE		1.059.596			361			1.059.957

(*) En la letra g) se explica detalladamente la naturaleza de los principales ajustes.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

g) Descripción de los principales ajustes:

A continuación se describirá la naturaleza de los principales efectos o ajustes que surgen en la adopción del nuevo Compendio de Normas Contables emitido por la SBIF.

i. Perímetro de Consolidación

De acuerdo a la normativa vigente hasta el 31 de Diciembre de 2007, Capítulo 11-6 “Inversiones en Sociedades en el País” de la Recopilación Actualizada de Normas; el Banco consideraba dentro de su perímetro de consolidación a las sociedades filiales y a las sociedades de apoyo al giro.

En primer caso, estas sociedades eran consolidadas mediante el método de integración global (línea a línea), siendo las siguientes:

	% de Participación
Sociedad	Directo			Indirecto			Total

Santander Corredores de Seguro Ltda.		99,75	%		0,01	%		99,76	%
Santander S.A. Corredores de Bolsa		50,59	%		0,41	%		51,00	%
Santander Asset Management S.A. Administradora General de Fondos		99,96	%		0,02	%		99,98	%
Santander S.A. Agente de Valores		99,03	%		-			99,03	%
Santander S.A. Sociedad Securitizadora		99,64	%		-			99,64	%
Santander Servicios de Recaudación y Pagos Limitada		99,90	%		0,10	%		100,00	%

Por su parte, las sociedades de apoyo al giro eran valorizadas mediante el método de puesta en equivalencia (VPP o VP), considerando las siguientes entidades:

Sociedad	% Part.

Redbanc S.A.		33,42	%
Transbank S.A.		32,71	%
Centro de Compensación Automatizado		33,33	%
Sociedad Interbancaria Depósitos de Valores S.A.		29,29	%
Cámara Compensación Alto Valor S.A.		11,52	%
Administrador Financiero Transantiago S.A.		20,00	%
Sociedad Nexus S.A.		12,90	%

Con la entrada en vigencia del nuevo Compendio de Normas Contables, el Banco ha debido analizar y definir nuevamente su perímetro de consolidación, teniendo presente que ahora el criterio fundamental a considerar es el grado de control que posea el Banco sobre una determinada entidad y no su porcentaje de participación en el patrimonio.

Producto de este análisis, se determinó lo siguiente:

Se mantendrán los métodos de consolidación/valorización utilizados hasta el 31 de Diciembre de 2008 para las sociedades filiales y de apoyo al giro. Lo anterior, debido a que se concluyó que en el primer caso el Banco posee control sobre ellas y en el segundo ejerce una influencia significativa.

Por otro lado, de acuerdo a lo estipulado por la NIC 27 y la SIC 12, el Banco debe evaluar la existencia de Entidades de Cometido Especial (ECE), las cuales deben se incluidas en el perímetro de consolidación, siendo sus principales características las siguientes:

Las actividades de la ECE han sido dirigidas, en esencia, en nombre de la entidad que presenta los estados financieros consolidados, y de acuerdo a sus necesidades específicas de negocio.

Se poseen los poderes de decisión necesarios para obtener la mayoría de los beneficios de las actividades de esas entidades y los derechos para obtener la mayoría de los beneficios u otras ventajas de dichas entidades.

En esencia, la entidad retiene para sí, la mayoría de los riesgos inherentes a la propiedad o residuales a la ECE o a sus activos, con el fin de obtener los beneficios de sus actividades.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

g) Descripción de los principales ajustes, continuación:

Así entonces, producto de esta evaluación, se concluyó que el Banco ejercía el control sobre un número determinado de entidades, las cuales debían ser incorporadas a su perímetro de consolidación, siendo las siguientes entidades:

- Santander Gestión de Recaudación y Cobranzas Ltda.

- Multinegocios S.A.

- Servicios Administrativos y Financieros Ltda.

- Servicios de Cobranzas Fiscalex Ltda.

- Multiservicios de Negocios Ltda.

- Bansa Santander S.A.

- Santander Multimedios S.A.

A principios del año 2009, la sociedad Santander Multimedios S.A., realizó un cambió en su giro de negocios, lo que generó que sus ingresos ya no dependieran en gran medida de las operaciones realizadas con el Banco. Producto de ello, se determinó que el Banco ya no ejercía control sobre ella, debiendo excluirla del perímetro de consolidación a partir de Marzo 2009.

Dentro de este ítem, en general, se incluyen los efectos que generó la inclusión de estas sociedades al perímetro de consolidación del Banco. Además se incluyen también aquellos efectos colaterales que genera la incorporación estas sociedades al perímetro de consolidación, como lo son nuevos ajustes de eliminación de operaciones relacionadas (ej. Colocaciones) y también la aceleración de desembolsos que anteriormente eran activados y devengados en resultado en un período de tiempo determinado.

ii. Sociedades de Apoyo al Giro

Dentro de este ítem se han agrupado los efectos particulares que generó la adopción del nuevo Compendio de Normas Contables en cada una de las diversas sociedades de Apoyo al Giro, considerando en cada caso el efecto proporcional que generan estos efectos/ajustes en el patrimonio del Banco, en base al porcentaje de participación que tiene el Banco sobre estas sociedades.

iii. Corrección Monetaria

De acuerdo a la normativa anteriormente vigente, los estados financieros consolidados se preparaban aplicando corrección monetaria integral, con el objetivo de reflejar los efectos de los cambios en el poder adquisitivo del peso chileno durante cada periodo.

Según el nuevo Compendio de Normas Contables y de acuerdo a la NIC 29 “Información Financiera en Economías Hiperinflacionarias”, se aplicará corrección monetaria sólo cuando la entidad cuya moneda funcional sea una moneda correspondiente a una economía hiperinflacionaria (entiéndase que es aquella economía con 100 por ciento de inflación en 3 años). En el caso del Banco, la moneda funcional es el peso chileno.

Debido a que la economía chilena no cumple los requisitos antes descritos, es que el Banco debió eliminar la corrección monetaria a partir del 1° de Enero de 2008. De acuerdo a lo establecido en el Capítulo E del Compendio de Normas Contables, la corrección monetaria aplicada hasta el 31 de Diciembre de 2007 no fue objeto de reversiones.

Dentro de este ítem, se incluyen los ajustes por la reversión de la corrección monetaria de los diferentes activos y pasivos. Por su parte, la corrección monetaria del capital pagado y reservas al 31 de Diciembre de 2008 no fueron revertidas, de acuerdo a lo establecido en el Capítulo E del Compendio de Normas Contables y a la necesidad de mantener los montos del capital pagado y de las reservas constituidas de acuerdo con las reglas aplicadas para efectos legales o estatutarios.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

g) Descripción de los principales ajustes, continuación:

iv. Activo Fijo e Intangibles

Dentro de este ítem, se incluye principalmente el efecto que genera el recálculo de las depreciaciones y amortizaciones de los activos fijos en general y de los intangibles (software y desarrollos informáticos) producto de la eliminación de la corrección monetaria (tal como se describe en el punto iii) y de las determinación del costo atribuido en el caso de los activos fijos al 1° de Enero de 2008.

De acuerdo a lo establecido en el Capítulo E del nuevo Compendio de Normas Contables, al 1° de Enero de 2008 el Banco determinó el costo atribuido de sus activos fijos, eligiendo el menor importe entre el costo histórico de cada unos de ellos (incluyendo su respectiva corrección monetaria hasta el 31 de Diciembre de 2007) y su valor razonable, basado en una tasación de los mismos, realizada por un tercero independiente.

v. Bienes Recibidos o Adjudicados en Pago

Anteriormente, los bienes recibidos o adjudicados en pago (BRP) eran valorizados al costo (precio convenido con el deudor en la dación en pago o el valor de adjudicación en remate judicial, según sea el caso, corregido monetariamente), menos una provisión de valuación individual en base a una tasación independiente. Al cabo de un año, en cumplimiento de lo dispuesto en el N° 5 del artículo 84 de la Ley General de Bancos, para hacer uso de un plazo adicional para vender los bienes recibidos o adjudicados en pago, los bancos debían castigar los bienes que se encontraban en esa situación.

La principal modificación que introduce en la valorización de los BRP el nuevo Compendio de Normas Contables, Capítulo B-5, (además de la eliminación de la corrección monetaria descrita en el punto iii.) es que al momento de realizar la provisión de valuación inicial se deberá considerar su valor realizable neto, es decir, el valor razonable (tasación independiente) menos los costos necesarios para mantenerlo y enajenarlo.

De acuerdo a los estudios realizados por el Banco, al 1° de Enero de 2008 se determinó un costo de venta (costo para mantenerlo y enajenarlo) promedio estimado de un 5,8% sobre el valor de tasación y al 31 de Diciembre de 2008 este guarismo ascendió a un 6,5%,

En este ítem se presentan los efectos que genera la aplicación del costo de venta anteriormente descrito.

vi. Castigos de Colocaciones

De acuerdo a la normativa anteriormente vigente, el plazo para efectuar los castigos de las cuotas vencidas y morosas de los créditos y cuentas a cobrar, se computaba desde su ingreso a cartera vencida, la cual representaba a aquellas operaciones que se encontraban morosas en el pago de capital e intereses por noventa días o más. Este ingreso a cartera vencida se realizaba anteriormente cuota a cuota.

De acuerdo a lo establecido en el Capítulo B-2 del nuevo Compendio de Normas Contables, el plazo para realizar los castigos de los créditos y cuentas por cobrar debe computarse desde el inicio de la mora de una determinada operación, afectando por tanto al 100% de la operación, ya sea que tenga una proporción morosa, vencida o vigente.

NOTA Nº1 ADOPCIÓN POR PRIMERA VEZ DEL COMPENDIO DE NORMAS CONTABLES, continuación:

g) Descripción de los principales ajustes, continuación:

A continuación se muestra un cuadro con los principales tipos de colocación y sus respectivos plazos de castigo de acuerdo a lo estipulado por el nuevo Compendio de Normas Contables:

Tipo de contrato		Plazo

Operaciones de Leasing
Leasing de consumo		6 meses
Otras operaciones de leasing no inmobiliario		12 meses
Leasing inmobiliario (comercial o vivienda)		36 meses

Resto de Operaciones
Créditos de consumo con o sin garantías reales		6 meses
Otras operaciones sin garantías reales		24 meses
Créditos comerciales con garantías reales		36 meses
Créditos hipotecarios para vivienda		48 meses

Dentro de este ítem, el Banco ha clasificado los efectos que surgen de la aplicación de esta nueva metodología para la aplicación de los castigos de créditos y cuentas a cobrar, así como también el efecto colateral que genera en las provisiones constituidas para cada una de las operaciones (al castigarse al 100% la operación, deben liberarse las provisiones constituidas).

vii. Impuestos diferidos

Dentro de este ítem se agrupan los efectos fiscales (impuestos diferidos) generados por las diferencias temporales, originadas a su vez, por los ajustes comentados anteriormente, sea que estos afecten directamente al patrimonio o a resultados.

FELIPE CONTRERAS FAJARDO	ÓSCAR VON CHRISMAR CARVAJAL
Gerente de Contabilidad	Gerente General

BANCO SANTANDER CHILE

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	September 30			September 30			December 31			January 01
	2009			2009			2008			2008
	ThUS$			MCh$			MCh$			MCh$
ASSETS
Cash and deposits in banks		906,871			854,459			855,411			1,108,637
Unsettled transaction		405,829			513,843			335,405			316,240
Trading investments		733,319			891,069			1,166,426			1,093,445
Investments under agreements to resell		16,086			8,805			-			33,999
Financial derivative contracts		1,428,496			1,296,402			1,846,509			780,775
Interbank loans		56,674			76,015			95,499			45,961
Loans and receivables from customers		13,245,608			13,515,005			14,311,349			12,022,275
Available for sale investments		1,903,217			1,316,741			1,580,240			779,635
Held to maturity investments		-			-			-			-
Investments in other companies		7,184			7,926			7,277			7,301
Intangibles assets		64,858			65,090			68,232			56,224
Property, plant and equipment		186,763			198,133			200,389			202,489
Current taxes		4,519			12,654			18,715			2,499
Deferred taxes		105,422			124,800			88,825			80,989
Other assets		541,467			662,024			508,655			460,282

TOTAL ASSETS		19,606,313			19,542,966			21,082,932			16,990,751
LIABILITIES
Deposits and other sight liabilities		3,152,739			3,130,913			2,948,162			2,867,934
Unsettled transaction		254,983			308,345			142,552			135,219
Investments under agreements to repurchase		807,034			739,967			562,223			307,630
Deposits and other time deposits		7,456,731			8,408,557			9,756,266			7,887,897
Financial derivative contracts		1,318,230			1,122,579			1,469,724			778,217
Interbank borrowings		1,741,380			1,495,608			1,425,067			1,099,457
Issued debt instruments		2,717,508			2,372,389			2,651,372			2,154,996
Other financial liabilities		145,925			130,521			131,318			175,667
Current taxes		60,503			850			791			16,067
Deferred taxes		2,149			57,388			19,437			11,084
Provisions		151,724			137,460			166,719			50,102
Other liabilities		211,372			220,667			293,733			118,550

TOTAL LIABILITIES		18,020,278			18,125,244			19,567,364			15,602,820
EQUITY
Attributable to owners of the parent:		1,555,148			1,393,361			1,489,689			1,369,797
Capital		891,303			818,535			891,303			818,535
Reserves		(16,960	)		(21,234	)		(123,726	)		(20,914	)
Valuation adjustments		(33,001	)		(31,204	)		(7,552	)		(9,475	)
Retained earnings:		713,806			627,264			729,664			581,651
Retained earnings of prior years		508,045			381,030			413,053			581,651
Net income for the period		293,944			321,408			415,055			-
Minus: Provision for mandatory dividends		(88,183	)		(75,174	)		(98,444	)		-

Minority interest		30,887			24,361			25,879			18,134

TOTAL EQUITY		1,586,035			1,417,722			1,515,568			1,387,931

TOTAL LIABILITIES AND EQUITY		19,606,313			19,542,966			21,082,932			16,990,751

F - 2

BANCO SANTANDER CHILE

CONSOLIDATED STATEMENTS OF INCOME

	September 30			September 30
	2009			2008
	MCh$			MCh$

Interest revenue		865,415			1,520,567
Interest expense		(234,278	)		(860,704	)

Net interest revenue		631,137			659,863

Fees and other services income		235,424			219,270
Other services expenses		(45,892	)		(38,244	)

Total fees and income from services, net		189,532			181,026

Net gains from mark-to-market and trading		52,013			171,255
Foreign exchange gain (losses), net		77,968			(101,771	)
Other operating income		8,645			15,541

Total operating income		959,295			925,914

Allowance for loans losses		(266,093	)		(204,405	)

OPERATING INCOME, NET OF ALLOWANCES		693,202			721,509

Personnel salaries and expense		(167,846	)		(179,228	)
Administrative and other expense		(102,661	)		(101,077	)
Depreciation and amortization		(34,655	)		(36,433	)
Other operating expenses		-			-
		(29,632	)		(32,353	)
Total operating expenses
		(334,794	)		(349,091	)
NET OPERATING INCOME		358,408			372,418

Income (loss) attributable to investments in other companies		863			1,291

Net income before taxes		359,271			373,709

Income tax		(60,514	)		(46,580	)

NET INCOME		298,757			327,129

Attributable to:
Owners of the parent		293,944			321,408
Minority Interest		4,813			5,721

Net income per share attributable to owners of the parent:

Basic earning		1,5598			1,7056
Diluted earning		1,5598			1,7056

F - 3

BANCO SANTANDER CHILE

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	September 30			September 30
	2009			2008
	MCh$			MCh$

NET INCOME		298,757			327,129

OTHER COMPREHENSIVE INCOME

Available for sale investments		( 2,791	)		(26,477	)
Cash flow hedge		(27,502	)		278
		-			-
Other comprehensive income before income taxes		(30,293	)		(26,199	)

Income Tax		5,150			4,470

Other comprehensive income, net of tax		(25,143	)		(21,729	)

COMPREHENSIVE INCOME		273,614			305,400

Attributable to:
Owners of the parent		268,495			299,679
Minority Interest		5,119			5,721

F - 4

BANCO SANTANDER CHILE

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Expressed in millions of Chilean pesos (MCh$) as of

				RESERVES						VALUATION ACCOUNT										RETAINING EARNINGS
		Capital		Reserves and retained earning			Business combination			Available for sale			Cash flow hedge			Other		Income taxes		Previous year's retained earnings			Income (loss) for the period			Provisions to dividends minimus			Total attributable to the owners of the parents			Minority Interest			TOTAL EQUITY

Equity as of December 31, 2007			818.535		49.372			(2.042	)		(5.548	)		(5.867	)		-		1.940		273.004			308.647			-			1.438.041			20.047			1.458.088
Retained earnings			-					-			-			-			-		-		308.647			(308.647	)		-			-			-			-
	Sub-total		818.535		49.372			(2.042	)		(5.548	)		(5.867	)		-		1.940		581.651			-			-			1.438.041			20.047			1.458.088
Effects for the adoption of IFRS			-		(68.244	)		-			-			-			-		-		-			-			-			(68.244	)		(1.913	)		(70.157	)
Equity as of January 01, 2008			818.535		(18.872	)		(2.042	)		(5.548	)		(5.867	)		-		1.940		581.651			-			-			1.369.797			18.134			1.387.931

Minimun dividend adjustment in accordance to circular N°3443			-		-			-			-			-			-		-		-			-			(92.594	)		(92.594	)		-			(92.594	)
Retirement / Dividends paid			-		-			-			-			-			-		-		(200.619	)		-			92.594			(108.025	)		(33	)		(108.058	)
Other equity movements			-		343			-			-			-			-		-		(2	)		-			-			341			821			1.162
Provision for minimum dividends			-		-			-			-			-			-		-		-			-			(46.225	)		(46.225	)		-			(46.225	)
	Sub-total		-		343			-			-			-			-		-		(200.621	)		-			(46.225	)		(246.503	)		788			(245.715	)
Other comprehensive income			-		-			-			(27.999	)		(15.887	)		-		7.461		-			-			-			(36.425	)		-			(36.425	)
Income for the period			-		-			-			-			-			-		-		-			189.159			-			189.159			4.767			193.926

	Sub-total		-		-			-			(27.999	)		(15.887	)		-		7.461		-			189.159			-			152.734			4.767			157.501

Equity as of June 30, 2008			818.535		(18.529	)		(2.042	)		(33.547	)		(21.754	)		-		9.401		381.031			189.159			(46.225	)		1.276.029			23.689			1.299.718

Equity as of December 31, 2008			891.303		(121.684	)		(2.042	)		(19.972	)		10.873			-		1.547		413.053			415.055			(98.444	)		1.489.689			25.879			1.515.568
Retained earnings			-		-			-			-			-			-		-		415.055			(415.055	)		-			-			-			-
	Sub-total		891.303		(121.684	)		(2.042	)		(19.972	)		10.873			-		1.547		828.108			-			(98.444	)		1.489.689			25.879			1.515.568
Price-level restatement 2008			-		106.766			-			-			-			-		-		(106.766	)		-			-			-			-			-
Equity as of January 01, 2009			891.303		(14.918	)		(2.042	)		(19.972	)		10.873			-		1.547		721.342			-			(98.444	)		1.489.689			25.879			1.515.568

Increase (decrease) of capital and reserves			-		-			-			-			-			-		-		-			-			-			-			5.600			5.600
Retirement / Dividends paid			-		-			-			-			-			-		-		(213.295	)		-			98.444			(114.851	)		(5.174	)		(120.025	)
Other equity movements			-		-			-						-			-		-		(2	)		-			-			(2	)		(210	)		(212	)
Provision for minimum dividends			-		-			-			-			-			-		-		-			-			(55.213	)		(55.213	)		-			(55.213	)
	Sub-total		-		-			-			-			-			-		-		(213.297	)		-			43.231			(170.066	)		(216	)		(169.850	)
Other comprehensive income			-		-			-			9.409			(17.417	)		-		1.361		-			-			-			(6.647	)		688			(5.959	)
Income for the period			-		-			-			-			-			-		-		-			184.043			-			184.043			4.137			188.180
	Sub-total		-		-			-			9.409			(17.417	)		-		1.361		-			184.043			-			177.396			4.825			182.221

Equity as of June 30, 2009			891.303		(14.918	)		(2.042	)		(10.563	)		(6.544	)		-		2.908		508.045			184.043			(55.213	)		1.497.019			30.920			1.527.939


Distributed dividends :

Period		Income attributable to owners of the parent		Assigned to reserves or retained earnings			Assigned to dividends			Distributed Percentage			Dividend per share (in Chilean pesos)

- Year 2007 (Shareholder's meeting April 2008)			308.647		108.028			200.619			65	%		1,065

- Year 2008 (Shareholder's meeting April 2009)			328.146		114.851			213.295			65	%		1,132

F - 5

BANCO SANTANDER CHILE

CONSOLIDATED STATEMENTS OF CASH FLOWS

	September 30			September 30
	2009 MCh$			2008 MCh$
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME FOR THE YEAR		298,757			327,129
Items that do not represent cash flows:
Depreciation and amortization		34,655			36,433
Allowance for loans losses		297,615			204,405
Mark to market of trading investments		(40,472	)		(2,109	)
Gain on investments in other companies		(863	)		(1,291	)
Gain on sales of assets received in lieu of payment		(1,509	)		(1,786	)
(Gain) loss on sale of shares in other companies		( 1,847	)		( 4,348	)
(Gain) loss on sales of bank premises and equipment		(432	)		( 163	)
Write-offs of assets received in lieu of payment		5,632			3,671
Other non-monetary charges		38,190			28,543
Net change in interest accruals		(71,605	)		(77,852	)
Net cash provided by operating activities		558,121			512,632
CASH FLOW FROM INVESTING ACTIVITIES:
Net decrease (increase) in loans		1,013,631			(1,506,759	)
Decrease (Increase) in other financial investments		126,366			(497,309	)
Purchases of bank premises and equipment		(11,978	)		(9,252	)
Proceeds from sales of bank premises and equipment		12,234			8,934
Investment in companies		-			3,274
Increase on investments in other companies		(32	)		1,400
Dividends received from investments in other companies		790			638
Net change in assets received in lieu of payment		26,877			16,601
Net (increase) in other assets and liabilities		(166,977	)		(167,692	)
Net cash used in investing activities		1,000,911			(2,150,165	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase on current accounts		137,082			171,287
Decrease (increase) of deposits and liabilities		(2,283,192	)		520,661
Increase of other sight obligations		82,157			(21,812	)
Decrease (increase) in investments sold under agreement to repurchase		230,713			567,965
Decrease (increase) of overseas short and long term loans		322,286			367,570
Proceeds from credit letters issued		4,506			-
Repayments of credit letters issued		(82,264	)		(236,271	)
Increase in other short term liabilities		14,264			(35,474	)
Loans obtained from the Central Bank of Chile (short term)		-			181
Payments of Central Bank of Chile loans (short and long term)		(970	)		(1,000	)
Proceeds from bond issues		308,518			264,923
Repayments of bond issues		(61,101	)		(15,433	)
Other short and long term obtained loans		(8,767	)		26,753
Increase of capital		5,600			-
Dividends paid		(218,411	)		(201,518	)
Net cash provided by Financing activities		(1,549,579	)		1,407,832
SUB TOTAL		9,453			( 229,701	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		9,453			( 229,701	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,048,264			1,289,658
CASH AND CASH EQUIVALENTS, END OF PERIOD		1,057,717			1,059,957

F - 6

	BANCO SANTANDER CHILE
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES:

First time adoption of the Compendium of Accounting Standards

The Superintendency of Banks (“SBIF”) together with other Chilean Superintendencies and regulatory bodies agreed to a plan of convergence with International Financial Reporting Standards (“IFRS”) in order to internationalize financial reporting for public companies in Chile. In the framework of the strategic plan, the SBIF, by means of Circular Nº 3,410 of November 09, 2007 complemented later by the Circular Nº 3,443 of August 21, 2008 announced the new "Compendium of Accounting Standards", which contains the new accounting and reporting formats for the financial industry applicable as of January 01, 2009, considering the transition accounting standards established in Chapter E of the above mentioned compendium.

According to legal regulations, Chilean banks must apply the accounting rules established by the SBIF and for any situation not accounted for therein, the generally accepted accounting principles, which correspond to the technical standards issued by the Association of Chilean Accountants, coinciding with International Financial Reporting Standards (IFRS) agreed by the International Accounting Standards Board (IASB), will take precedence.

As a result of the application of these new accounting regulations, the Bank established a plan for the transition to the new accounting standards, which included an analysis of the difference in accounting policies, the selection of accounting policies where a choice is available and an analysis of required changes to procedures and information systems.

In accordance with this transition plan, the accounting policies of the new Compendium of Accounting Standards have been applied retrospectively as of January 01, 2008 and an opening balance sheet has been prepared. Likewise, with the goal of presenting comparative financial statements during the year 2009, the Bank made a set of pro-forma financial statements for the year 2008.

The detail and explanation of the principal impacts of the transition to these new accounting principles, for both the Consolidated Statement of Financial Position and the Consolidated Statement of Income, are as follows:

a) Reconciliation of Equity in accordance with the new Compendium of Accounting Standards:

The principal adjustments resulting from the adoption of the new Compendium of Accounting Standards in Equity are as follows:

		Total Equity
		January 01 2008			September 30 2008			December 31 2008
		January 01 2008			September 30 2008			December 31 2008
	Explanation (*)	MCh$			MCh$			MCh$

Equity before adoption			1,458,088			1,500,504			1,602,610

Adjustments:
Consolidation	i		(14,454	)		(10,065	)		(9,712	)
Associate entities	ii		506			364			719
Price-level restatement	iii		-			(24,626	)		(30,493	)
Intangible assets and Property, plant and equipment	iv		(64,494	)		(59,668	)		(58,613	)
Assets received in lieu of payment	v		(929	)		(631	)		(408	)
Charge-offs of loans	vi		(2,205	)		(3,179	)		(4,235	)
Deferred taxes	vii		11,419			15,023			15,700
Sub-total			(70,157	)		(82,782	)		(87,042	)

Equity in accordance to the new Compendium of Accounting Standards			1,387,931			1,417,722			1,515,568

(*) Section g) explains in details the nature of the principal adjustments.

As commented previously, these adjustments are generated by the adoption of the new SBIF Compendium of Accounting Standards, therefore they do not correspond to the correction of an error in accordance with the IAS 8.

F - 7

	BANCO SANTANDER CHILE
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

b) Reconciliation of Income in accordance with the new Compendium of Accounting Standards:

The principal adjustments resulting from the adoption of the new Compendium of Accounting Standards in the Income Statement are as follows:

		Consolidated Income
		September 30 2008			December 31 2008
	Explanation (*)	MCh$			MCh$

Resultado antes de cambios normativos			252,552			331,017
Ajustes:
Consolidation	i		4,389			4,742
Associates entities	ii		(142	)		213
Price-level restatement	iii		62,576			78,027
Intangible assets and Property, plant and equipment	iv		4,286			5,881
Assets received in lieu of payment	v		298			521
Charge-offs of loans	vi		(974	)		(2,030	)
Deferred taxes	vii		3,604			4,281
Sub-total			74,577			91,635

Resultado según nuevo Compendio de Normas Contables			327,129			422,652

(*) Section g) explains in details the nature of the principal adjustments.

c) Opening Consolidated Statements of Financial Position in accordance with the new Compendium of Accounting Standards:

As commented previously, on January 01, 2008 the new Compendium of Accounting Standards were applied retrospectively with the goal of stating the respective opening balance sheet under these new accounting procedures.

The reconciliation of the Statement of Financial Position, is as follows:

Closing Balances:

These appear in the Consolidated financial statements of the Bank and its subsidiaries on January 01, 2008 which were prepared in accordance with the previously accepted accounting principles.

Adjustments:

Changes principally due to the appraisal criteria and the new accounting policies in accordance with the new regulations. This concept includes the modifications to the consolidation in accordance with the new Compendium of Accounting Standards.

Opening Balances:

The result of considering the effect of the adjustments in the closing balances.

F - 8

	BANCO SANTANDER CHILE
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

c) Opening Consolidated Statements of Financial Position in accordance with the new Compendium of Accounting Standards, continuation:

	As of January 01, 2008
	Closing Balances			Adjustments (*)			Opening Balances
	MCh$			MCh$			MCh$
ASSETS
Cash and deposits in banks		1,108,444			193			1,108,637
Unsettled transaction		316,240			-			316,240
Trading investments		1,090,004			3,441			1,093,445
Investments under agreements to resell		33,999			-			33,999
Financial derivative contracts		780,775			-			780,775
Interbank loans		45,961			-			45,961
Loans and receivables from customers		12,028,053			(5,778	)		12,022,275
Available for sale investments		779,635			-			779,635
Investments in other companies		6,795			506			7,301
Intangibles assets		56,187			37			56,224
Property, plant and equipment		245,619			(43,130	)		202,489
Current taxes		1,933			566			2,499
Deferred taxes		61,260			19,729			80,989
Other assets		474,091			(13,809	)		460,282
TOTAL ASSETS		17,028,996			(38,245	)		16,990,751
LIABILITIES
Deposits and other sight liabilities		2,868,769			(835	)		2,867,934
Unsettled transaction		135,219			-			135,219
Investments under agreements to repurchase		308,651			(1,021	)		307,630
Deposits and other time deposits		7,887,897			-			7,887,897
Financial derivative contracts		778,217			-			778,217
Interbank borrowings		1,099,443			14			1,099,457
Issued debt instruments		2,154,996			-			2,154,996
Other financial liabilities		147,868			27,799			175,667
Current taxes		15,897			170			16,067
Deferred taxes		10,877			207			11,084
Allowances		46,376			3,726			50,102
Other liabilities		116,698			1,852			118,550
TOTAL LIABILITIES		15,570,908			31,912			15,602,820
EQUITY
Attributable to owners of the parent:		1,438,041			(68,244	)		1,369,797
Capital		818,535			-			818,535
Reserves		47,330			(68,244	)		(20,914	)
Valuation adjustments		(9,475	)		-			(9,475	)
Retained earnings:		581,651			-			581,651
Retained earnings of prior years		581,651			-			581,651
Net income for the period		-			-			-
Minus: Allowance for mandatory dividends		-			-			-

Minority interest		20,047			(1,913	)		18,134

TOTAL EQUITY		1,458,088			(70,157	)		1,387,931

TOTAL LIABILITIES AND EQUITY		17,028,996			(38,245	)		16,990,751

(*) Section g) explains in detail the nature of the principal adjustments.

F - 9

	BANCO SANTANDER CHILE
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

d) Pro-forma Statements of Financial Position:

With the aim of presenting comparative financial statements during the year 2009, the Bank made a set of pro-forma financial statements for the year 2008, the following presents the formulation of the pro-forma States of Financial Situation on December 31, 2008:

	As of September 30, 2008									As of December 31, 2008
	Previous accounting standards			Adjustments (*)			Compendium of Accounting			Previous accounting standards			Adjustments (*)			Compendium of Accounting
	MCh$			MCh$$			(MCh$			MCh$			MCh$			MCh$
ASSETS
Cash and deposits in banks		854,098			361			854,459			854,838			573			855,411
Unsettled transactions		513,843			-			513,843			335,405			-			335,405
Trading investments		891,070			(1	)		891,069			1,161,631			4,795			1,166,426
Investments under agreements to resell		8,805			-			8,805			-			-			-
Financial derivative contracts		1,296,402			-			1,296,402			1,846,509			-			1,846,509
Interbank loans		76,015			-			76,015			95,499			-			95,499
Loans and receivables from customers		13,521,962			(6,957	)		13,515,005			14,319,370			(8,021	)		14,311,349
Available for sale investments		1,316,741			-			1,316,741			1,580,240			-			1,580,240
Investments in other companies		7,186			740			7,926			6,990			287			7,277
Intangibles assets		69,534			( 4,444	)		65,090			73,089			(4,857	)		68,232
Property, plant and equipment		253,918			( 55,785	)		198,133			260,105			(59,716	)		200,389
Current taxes		12,275			379			12,654			18,289			426			18,715
Deferred taxes		101,876			22,924			124,800			64,821			24,004			88,825
Other assets		668,293			(6,269	)		662,024			520,348			(11,693	)		508,655
TOTAL ASSETS		19,592,018			(49,052	)		19,542,966			21,137,134			(54,202	)		21,082,932
LIABILITIES
Deposits and other sight liabilities		3,132,432			(1,519	)		3,130,913			2,949,757			(1,595	)		2,948,162
Unsettled transactions		308,345			-			308,345			142,552			-			142,552
Investments under agreements to repurchase		741,043			(1,076	)		739,967			563,234			(1,011	)		562,223
Deposits and other time deposits		8,408,557			-			8,408,557			9,756,266			-			9,756,266
Financial derivative contracts		1,122,579			-			1,122,579			1,469,724			-			1,469,724
Interbank borrowings		1,495,606			2			1,495,608			1,425,065			2			1,425,067
Issued debt instruments		2,372,389			-			2,372,389			2,651,372			-			2,651,372
Other financial liabilities		101,998			28,523			130,521			103,278			28,040			131,318
Current taxes		423			427			850			163			628			791
Deferred taxes		56,892			496			57,388			18,766			671			19,437
Allowances		132,216			5,244			137,460			162,165			4,554			166,719
Other liabilities		219,034			1,633			220,667			292,182			1,551			293,733
TOTAL LIABILITIES		18,091,514			33,730			18,125,244			19,534,524			32,840			19,567,364
EQUITY
Atribuible a tenedores patrimoniales del banco:		1,477,196			(83,834	)		1,393,361			1,578,045			(88,356	)		1,489,689
Capital		818,535			-			818,535			891,303			-			891,303
Reserves		133,429			(154,663	)		(21,234	)		51,539			(175,265	)		(123,726	)
Valuation adjustments		(31,204	)		-			(31,204	)		(7,552	)		-			(7,552	)
Retained earnings:		556,436			70,828			627,264			642,755			86,909			729,664
Retained earnings of prior years		381,030			-			381,030			413,053			-			413,053
Net income for the period		250,580			70,828			321,408			328,146			86,909			415,055
Minus: Allowance for mandatory dividends		(75,174	)		-			(75,174	)		(98,444	)		-			(98,444	)
Minority Interest		23,308			1,053			24,361			24,565			1,314			25,879
TOTAL EQUITY		1,500,504			(82,782	)		1,417,722			1,602,610			(87,042	)		1,515,568

TOTAL LIABILITIES AND EQUITY		19,592,018			(49,052	)		19,542,966			21,137,134			(54,202	)		21,082,932

F - 10

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

e) Pro-forma Statements of Income:

The Bank completed pro-forma financial statements for the year 2008 in order to present comparative information. The following presents the pro-forma Statements of Income for the period ended on September 30, 2008:

	As of September 30, 2008									As of December 31, 2008
	Previous accounting standards			Adjustments (*)			Compendium of Accounting Standards			Norma Antigua			Adjustments (*)			Compendium of Accounting Standards
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
OPERATING INCOME:

Interest revenue		1,520,729			(162	)		1,520,567			2,061,112			234			2,061,346
Interest expense		(857,143	)		(3,561	)		(860,704	)		(1,164,071	)		(5,209	)		(1,169,280	)
Net interest revenue		663,586			(3,723	)		659,863			897,041			(4,975	)		892,066

Fees and other services income		203,913			15,357			219,270			276,433			19,536			295,969
Other services expenses		(38,244	)		-			(38,244	)		(52,840	)		-			(52,840	)
Net fees and income from services		165,669			15,357			181,026			223,593			19,536			243,129

Net gains from mark-to-market and trading		171,011			244			171,255			273,084			393			273,477
Net gains from Foreign Exchange		(101,771	)		-			(101,771	)		(187,042	)		-			(187,042	)
Other operating income		13,203			2,338			15,541			16,512			1,710			18,222
Total Operating income		911,698			14,216			925,914			1,223,188			16,664			1,239,852

Allowance for loan losses		(203,431	)		(974	)		(204,405	)		(285,953	)		(2,030	)		(287,983	)

OPERATING INCOME, NET OF ALLOWANCES		708,267			13,242			721,509			937,235			14,634			951,869
Personnel salaries and expense		(150,028	)		(29,200	)		(179,228	)		(209,134	)		(37,641	)		(246,775	)
Administrative and other expense		(122,905	)		21,828			(101,077	)		(161,977	)		28,295			(133,682	)
Depreciation and amortization		(38,590	)		2,157			(36,433	)		(51,944	)		4,317			(47,627	)
Other operating expenses		(32,961	)		608			(32,353	)		(42,259	)		581			(41,678	)
Total Operating expenses		(344,484	)		(4,607	)		(349,091	)		(465,314	)		(4,448	)		(469,762	)

NET OPERATING INCOME		363,783			8,635			372,418			471,921			10,186			482,107

Income attributable to investments in other companies		1,057			234			1,291			851			(219	)		632
Price-level restatement		(62,576	)		62,576			-			(78,027	)		78,027			-
Net income before taxes		302,264			71,445			373,709			394,745			87,994			482,739

Income tax		(49,712	)		3,132			(46,580	)		(63,728	)		3,641			(60,087	)

NET CONSOLIDATED INCOME		252,552			74,577			327,129			331,017			91,635			422,652

Attributable to:
Owners of the parent		250,580			70,828			321,408			328,146			86,909			415,055
Minority Interest		1,972			3,749			5,721			2,871			4,726			7,597

Net income per share attributable to owners of the parent:
(in Chilean pesos)
Basic earnings		1,3297			-			1,7056			1,741			-			2,203
Diluted earnings		1,3297			-			1,7056			1,741			-			2,203

(*) Section g) explains in detail the nature of the principal adjustments.

F - 11

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

f) Pro-forma Cash Flow Statement:

With the goal of providing a reconciliation of the Cash Flow Statement presented under the previous accounting standards for the period ended September 30, 2008 to the new accounting standards, the following pro-forma statement was completed:

	As of September 30, 2008
	Previous accounting standards			Adjustments (*)			Compendium of Accounting Standard
	MCh$			MCh$			MCh$
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME FOR THE YEAR		252,552			74,577			327,129
Items that do not represent cash flow:
Depreciation and amortization		38,590			(2,157	)		36,433
Allowance for loan losses		231,603			(27,198	)		204,405
Mark to market of trading investments		( 962	)		(1,147	)		(2,109	)
Gain on investments in other companies		(1,057	)		(234	)		(1,291	)
Gain on sale of assets received in lieu of payment		(7,025	)		5,239			(1,786	)
Gain on sale of shares in other companies		-			( 4,348	)		(4,348	)
(Gain) loss on sale of bank premises and equipment		181			(344	)		(163	)
Write-offs of assets received in lieu of payment		3,887			(216	)		3,671
Price level restatement		62,576			(62,576	)		-
Other non-monetary charges		71,697			(43,154	)		28,543
Net change in interest accruals		(74,979	)		(2,873	)		(77,852	)
Net cash provided by operating activities		577,063			(64,431	)		512,632
CASH FLOW FROM INVESTMENT ACTIVITIES :
Net decrease (increase) in loans		(898,993	)		(607,766	)		(1,506,759	)
Net decrease (increase) in other financial investments		(299,277	)		(198,032	)		(497,309	)
Purchases of Bank premises and equipment		(9,253	)		1			(9,252	)
Proceeds from sale of Bank premises and equipment		1,647			7,287			8,934
Increase on investments in other companies		3,472			( 198	)		3,274
(Increase) decrease in investments in companies		10,926			(9,526	)		( 1,400	)
Dividends received from investments in other companies		607			31			638
Net change in assets received in lieu of payment		16,540			61			16,601
Net (increase) decrease in other assets and liabilities		(159,997	)		(7,695	)		(167,692	)
Net cash used in investing activities		(1,334,328	)		(815,837	)		(2,150,165	)
CASH FLOW FROM FINANCE ACTIVITIES:
Net increase in current accounts		28,341			142,946			171,287
Decrease (increase) of deposits and liabilities		(26,528	)		547,189			520,661
Increase of other sight obligations		(68,185	)		46,373			(21,812	)
Decrease (increase) in investments sold under agreement to repurchase		429,275			138,690			567,965
Decrease (increase) of overseas short and long term loans		291,575			75,995			367,570
Repayments of credit letters issue		(236,270	)		(1	)		(236,271	)
Increase in other short term liabilities		(42,356	)		6,882			(35,474	)
Loans obtained from the Central Bank of Chile (short term)		180			1			181
Payments of loans from the Central Bank of Chile		(1,276	)		276			(1,000	)
Proceeds from bond issues		264,924			(1	)		264,923
Repayments of bond issues		(15,433	)		-			(15,433	)
Other long term loans obtained		26,248			505			26,753
Dividends paid		(211,032	)		9,514			(201,518	)
Net cash provided by financing activities		439,463			968,369			1,407,832
Sub-total		(317,802	)		88,101			(229,701	)
PRICE-LEVEL RESTATEMENT IN CASH AND CASH EQUIVALENTS		(1,556	)		1,556			-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(319,358	)		89,657			(229,701
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,378,954			(89,296	)		1,289,658
CASH AND CASH EQUIVALENTS, END OF PERIOD		1,059,596			361			1,059,957

(*) Section g) explains in detail the nature of the principal adjustments.

F - 12

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES, continuation:

g) Description of the principal adjustments:

The explanation of the principal adjustments as a result of the adoption of the new Compendium of Accounting Standards issued by the SBIF is as follows:

i.	Consolidation

In accordance with the regulations as of December 31, 2007 chapter 11-6 "Inversiones en sociedades en el País" of the “Recopilación Actualizada de Normas” (RAN), the Bank consolidated the subsidiaries and the associate entities.

Initially, these companies were consolidated through global consolidation (line by line), as follows:

	Percentage owned
Society	Direct			Indirect			Total

Santander Corredores de Seguro Ltda,		99,75	%		0,01	%		99,76	%
Santander S,A, Corredores de Bolsa		50,59	%		0,41	%		51,00	%
Santander Asset Management S,A, Administradora General de Fondos		99,96	%		0,02	%		99,98	%
Santander S,A, Agente de Valores		99,03	%		-			99,03	%
Santander S,A, Sociedad Securitizadora		99,64	%		-			99,64	%
Santander Servicios de Recaudación y Pagos Limitada		99,90	%		0,10	%		100,00	%

The associate entities accounted for in accordance with the equity method of accounting (VPP or VP, abbreviations in Spanish) are as follows:

Society	Percentage owned

Redbanc S,A,		33.42	%
Transbank S,A,		32.71	%
Centro de Compensación Automatizado		33.33	%
Sociedad Interbancaria Depósitos de Valores S,A,		29.29	%
Cámara Compensación Alto Valor S,A,		11.52	%
Administrador Financiero Transantiago S,A,		20.00	%
Sociedad Nexus S,A,		12.90	%

With the new Compendium of Accounting Standards, the Bank analyzed and redefined its consolidation, considering that it is now required to consider the degree of control the Bank that possesses over a certain entity and not just its percentage of participation in the equity.

From this analysis, the following was determined:

-	The method of consolidation used through December 31, 2008 will continue for the subsidiaries and the associate entities. This is because the Bank possesses control over them and exercises significant influence.

-	In accordance with the stipulations of IAS 27 and SIC 12, the Bank must evaluate the existence of Special Purpose Entities (SPE), which must be consolidated, with the following principal characteristics:

The SPE’s activities have been directed, in essence, on behalf of the entity that presents the consolidated financial statements, in accordance to its specific needs of business.

The necessary decision making powers are possessed to obtain the majority of the benefits or other advantages of these entities.

In essence, the entity retains for itself the majority of the risks inherent in the property or residual to the SPE or to its assets, in order to obtain the benefits of its activities.

F - 13

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES: continuation:

g) Description of the principal adjustments, continuation:

It was concluded that the Bank was exercising control over the following entities, which must now be incorporated into its consolidation:

- Santander Gestión de Recaudación y Cobranzas Ltda.

- Multinegocios S.A.

- Servicios Administrativos y Financieros Ltda.

- Servicios de Cobranzas Fiscalex Ltda.

- Multiservicios de Negocios Ltda.

- Bansa Santander S.A.

- Santander Multimedios S.A.

At the beginning of the year 2009, Santander Multimedios S.A., made a change to its business model, resulting in its income no longer being dependent to a great extent on the operations performed with the Bank. As a result, it was determined that the Bank was no longer exercising control over the entity, and must therefore exclude its activities from the Bank’s financial statements as of March, 2009.

ii.	Associate entities

Within this item represents, the impact of the adoption of the new Compendium of Accounting Standards by each of the various associate entities, considering the proportional effect that these effects/adjustments have on the equity of the Bank, on the basis of the participation percentage that the Bank has in these companies.

iii.	Price-level restatement

In accordance with the previously regulations, the consolidated financial statements were prepared applying price-level restatement, with the goal of reflecting the effects of changes in the buying power of the Chilean peso during each period.

According to the new Compendium of Accounting Standards, and in accordance to IAS 29 "Financial Reporting in Hyperinflationary Economies", price-level restatement will be applied only when the entity’s functional currency is a currency corresponding to a hyperinflationary economy (an economy with 100 per cent inflation in 3 years). For the Bank, the functional currency is the Chilean peso.

As the Chilean economy is not hyperinflationary, the Bank should eliminate the price-level restatement as of January 01, 2008. In accordance with the guidelines established in Chapter E of the Compendium of Accounting Standards, the price-level restatement applied until December 31, 2007 should not be reversed.

The adjustments for price-level restatements of assets and liabilities are included herein. The price-level restatement of the paid capital and reserves at December 31, 2008 was not reversed, in accordance with the guidelines established in Chapter E of the Compendium of Accounting Standards and to maintain the paid capital and the reserves in accordance with legal or statutory requirements.

F - 14

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES:, continuation:

g) Description of the principal adjustments, continuation:

iv.	Intangible assets and Property, plant and equipment

The principle effects of the recalculation of depreciations and amortizations of intangible assets (software and computer developments) and property, plant and equipment as a result of the elimination of the price-level restatement (as described in point iii) and the determination of the cost of property, plant and equipment on January 01, 2008 are included.

In accordance with the guidelines established in Chapter E of the new Compendium of Accounting Standards, on January 01, 2008 the Bank determined the cost of its fixed assets, selecting the lesser of the historical cost (including the respective price-level restatement until December 31, 2007) and its fair value, based on an appraisal by an independent third person.

v.	Assets received in lieu of payment

Previously, the assets received in lieu of payment (BRP) were valued at cost (agreed price with the debtor for transfer in payment or the value of adjudication by legal ruling, in which case, price level restated), less an allowance based on an independent appraisal. After a year, in compliance with the N° 5 of the article 84 of the General Law of Banks, if the assets received in lieu of payment are not sold, the banks must charge-off the assets while they continue to attempt to liquidate them.

The principal modification introduced by the new Compendium of Accounting Standards, chapter B-5, (in addition to the elimination of price level restatement described in point iii.) in the valuation of the BRP, is that at the time of calculating and recording the initial provision, its realizable net value must be considered. The net realizable value is the fair value (through independent appraisement) minus the necessary cost to maintain and dispose of it.

In accordance with the studies performed by the Bank, on January 01, 2008 an estimated average cost of sale was (the cost to maintain it and dispose of it) 5,8 % of the appraisal value and on December 31, 2008 this was increased to 6,5 %.

vi.	Charge-off of loans

In accordance with the previous regulations, the charge-offs of past due payments and overdue payments of loans and receivables was calculated from its portfolio in arrears, which represented those operations with capital payments and interest default of ninety days or more. This method was realized previously quota by quota.

In accordance with the guidelines established in Chapter B-2 of the new Compendium of Accounting Standards, the charge-offs of loans and other receivables must be calculated from the beginning of the default, therefore affecting 100 % of the loans whether it is overdue, past due or current proportion.

vii.	These refer to the collateral effect generated by the incorporation of new societies into the consolidation, such as the increases in expenditure previously accrued and recognized in the financial statements.

F - 15

BANCO SANTANDER CHILE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE N°02 ACCOUNTING CHANGES:, continuation:

g) Description of the principal adjustments, continuation:

The table below displays the principal types of loans and their respective charge-off periods in accordance with the guidelines stipulated by the new Compendium of Accounting Standards:

Type of contract		Term

Leasing Operations

Consumer leasing		6 months
Other non-property leasing		12 months
Property leasing (commercial or housing)		36 months

Other Operations

Consumer loans with or without real guarantees		6 months
Other operations without real guarantees		24 months
Commercial loans with real guarantees		36 months
Mortgage loans for housing		48 months

Within this item, the Bank has classified the effects of this new methodology for charge-offs of loans and other receivables, as well as the effect that it generates on the allowances for each of the operations (upon a charge-off of 100%, the related allowances are reversed).

viii.

Deferred taxes

This item represents the fiscal effects (deferred taxes) generated by the temporary differences arising from the adjustments previously described, if these directly affect the equity or income.

FELIPE CONTRERAS FAJARDO

Gerente de Contabilidad

ÓSCAR VON CHRISMAR CARVAJAL

Gerente General

F - 16

F - 17