SEC Filing | Banco Santander Chile

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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.	Fourth Quarter Earning Report 2009

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/
Name:	Juan Pedro Santa María
Title:	General Counsel

Date: February 8, 2010

INDEX

SECTION	PAGE

SECTION 1: SUMMARY OF RESULTS		2

SECTION 2: BALANCE SHEET ANALYSIS		7

SECTION 3: ANALYSIS OF QUARTERLY INCOME STATEMENT		10

SECTION 4: CREDIT RISK RATINGS		17

SECTION 5: SHARE PERFORMANCE		18

SECTION 6: INSTITUTIONAL BACKGROUND		19

ANNEX 1: BALANCE SHEET		20

ANNEX 2: YEAR TO DATE INCOME STATEMENT		21

ANNEX 3: QUARTERLY INCOME STATEMENTS		22

ANNEX 4: QUARTERLY EVOLUTION OF MAIN RATIOS AND OTHER INFORMATION		23

CONTACT INFORMATION		Santiago, Chile
Robert Moreno		Tel: (562) 320-8284
Manager, Investor Relations Department		Fax: (562) 671-6554
Banco Santander Chile		Email: rmorenoh@santander.cl
Bandera 140 Piso 19,		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

4Q09: record-high net income

Quarterly Net Income, Ch$ million, 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 24.9% QoQ and 46.6% YoY in 4Q09

In 4Q09, net income attributable to shareholders totaled a record-high level of Ch$137,309 million (Ch$0.73 per share and US$1.49/ADR1). These results represent an increase of 24.9% compared to 3Q09 (from now on QoQ) and an increase of 46.6% compared to restated 4Q08 figures (from now on YoY). Compared to historical figures (not adjusted for the new accounting standards2), net income attributable to shareholders increased 77.0% YoY in 4Q09. Adjusting for one-time pre-tax income of Ch$15,686 million in the quarter, net income increased 13.1% QoQ and 32.7% YoY.

ROAE reached 34.1% in 4Q 09 (30.9% adjusted)

With these results, the Bank’s ROAE in the quarter reached 34.1%. The Bank currently has the highest ROE among the banks operating in Chile. This strong profitability was achieved while having one of the highest levels of capitalization in the Chilean financial system. As of December 31, 2009, the Bank’s BIS ratio reached 15.6% and its Tier I ratio stood at 11.7%. The ROAE adjusted for one-time income in the quarter reached 30.9%.

1 Earnings per ADR is calculated using an exchange rate of Ch$506.43 per US$.

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 variations presented below are based on 4Q08 and 2008 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

Retail loans grow 3.1% QoQ in 4Q09. Consumer loans increase 4.1% in the same period

In 4Q09, retail loans increased 3.1% QoQ and total loans grew 1.1% in the same period. The pick up in economic growth has led to a rebound in loan volumes, especially in higher yielding retail banking activities. The lower interest rate and inflation environment has also boosted loan demand. As a result, loans to individuals increased 3.5% QoQ led by a 6.6% QoQ rise in loans to high income individuals. Loan growth to middle and lower income individual increased for the first time in 2009, growing 1.2% QoQ. Lending to SMEs continues to be another area of positive growth, increasing 2.5% QoQ.

Retail loans: growth momentum gaining pace

Retail loans/, Ch$ billion and QoQ growth (%)

* Retail loans includes loans to individuals, SMEs and institutional lending

Net provision expense decreases 14.4% QoQ in 4Q09

In 4Q09, the Bank’s net provision expense decreased 14.4% QoQ. This was mainly due to an improvement in asset quality levels among individuals as a result of the Bank’s efforts to control asset quality and the improved economic scenario. As a result charge-offs in the quarter decreased 25.2% QoQ and 35.4% YoY in 4Q09.

Net interest income, net of provisions was up 14.1% QoQ and 6.1% YoY in 4Q09

In 4Q09, net interest income was up 3.7% QoQ and decreased 2.9% YoY. Net of provision expense, net interest income was up 14.1% QoQ and 6.1% YoY. The Bank’s net interest margin reached 5.8% in the quarter compared to 5.7% in 3Q09. This positive QoQ evolution of net interest income and margins was due to an improved loan mix fueled by the solid rebound in retail lending and a higher inflation rate in the quarter. 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 UF inflation reached 0.52% in 4Q09 compared to (0.47%) in 3Q09.

Investor Relations Department

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

email: rmorenoh@santander.cl

Fees flat QoQ and up 4.0% YoY in 4Q09

Net fee income was flat QoQ and increased 4.0% YoY in 4Q09. Fees from credit, debit and ATM cards increased 2.2% QoQ and 19.9% YoY. The rise in fees from these businesses reflects the increase in usage of the Bank’s cards mainly as a result of the launching of three new successful credit card products in 2009. As of December 2009, the Bank, with 33.1% of all bank credit cards, generated 38.2% of all monetary purchases. Billings were up 22.9% in real terms YoY compared to 8.1% for the rest of the market, excluding Santander. Santander Chile ranks number one in Chile in terms of purchases with credit cards with approximately 19% of the market, including non-bank lenders. This was offset by the 2.4% QoQ and 31.7% YoY decrease in fees from checking accounts and lines of credit. This as a direct result of regulatory changes that prohibits fees charged for unauthorized overdrafts as of April 2009.

The efficiency ratio reaches a record-low of 30.5% in 4Q09

The Bank continued to control costs in the quarter and the efficiency ratio (Operating expenses / Operating income) reached a record-low level of 30.5% compared to 32.6% in 3Q09 and 36.6% in 4Q08. The positive evolution of operating efficiency was mainly due to general cost control and the increase in usage of alternative channels, especially internet.

Gross income net of provisions & costs increases 19.0% QoQ and 34.7% YoY in 4Q09

In summary, gross income, net of provisions & costs, a proxy for recurring earnings, jumped 19.0% QoQ and 34.7% YoY in 4Q09, reflecting the high quality of results in the period. The growth of net interest income, higher gains from financial transactions, lower provision expense and cost savings were the main drivers of these positive results. Non-recurring gains also boosted net income in the period.

(Ch$ million)	4Q09	YoY Chg.			QoQ Chg.
Net interest income	225,379		-2.9	%		3.7	%
Fee income	64,598		4.0	%		-0.2	%
Financial transactions	37,147		119.1	%		17.9	%
Provision expense	-67,754		-18.9	%		-14.4	%
Operating expenses	-102,732		-7.8	%		0.0	%
Gross income, net of provisions & costs	156,638		34.7	%		19.0	%
Other operating and non-operating income, net*	-19,089		-14.5	%		-11.0	%
Net income attributable to shareholders	137,309		46.6	%		24.9	%

* 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 net income, ROE and Efficiency in 2009

In 2009, net income attributable to shareholders totaled Ch$431,253 million (Ch$2.29/share and US$4.69/ADR). Net income increased 3.9% YoY due to a 6.0% increase in gross income, net of provisions & operating costs. The Bank had a solid 2009 despite the weaker economic environment, which resulted in higher provision expenses and deflation, which hurt margins. This was more then offset by the Bank’s strategy of actively managing the balance sheet, growing selectively, increasing cross-selling and controlling costs. Net income attributable to shareholders increased 31.4% in 2009 compared to non-restated 2008 net income. This growth is relevant for shareholders because dividends should grow accordingly as long as the payout ratio is kept constant in 2010.

Investor Relations Department

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

email: rmorenoh@santander.cl

In 2009, the Bank’s ROAE reached 28.0%, the highest in the Chilean banking system, and higher than the 12.6% showed by our competitors, that is, the System excluding Santander. At the same time, Santander was the most efficient bank in Chile achieving an efficiency ratio of 32.2% for the year, 1,880 basis points lower than the efficiency ratio of our competitors.

Summary of quarterly results (Ch$ million)	2009		YoY Chg.
Net interest income		856,516		-4.0	%
Fee income		254,130		4.5	%
Financial transactions		167,128		93.4	%
Provision expense		-333,847		15.9	%
Operating expenses		-407,894		-4.7	%
Gross income, net of provisions & costs		536,033		6.0	%
Other operating and non-operating income, net*		-104,780		15.9	%
Net income attributable to shareholders		431,253		3.9	%

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

The Gross income, net of provisions & costs by business segment reflects our strategy of focusing on profitability and the diversified earnings mix of the Bank. The contribution of retail banking activities increased 6.2% in 2009 despite a 10.7% rise in provision expense. This was driven by higher spreads, greater fee income and tight control of costs in this segment. The net contribution of the middle market was flat YoY despite the 57.6% increase in provision expense in this segment led by the salmon sector and other specific loan positions. This was offset by greater spreads, fee income and cost savings. The net contribution of our Global Banking and Markets segment increased 11.9% in 2009, despite the 47.3% decrease in loans YoY. This reflects our focus on profitability and non-lending activities in this segment over loan market share concerns.

Gross income, net of provisions & costs* (Ch$ million)	2009		YoY Chg.
Individuals		223,084		14.5	%
SMEs		147,067		-4.8	%
Institutional		14,290		12.5	%
Total Retail Banking		384,441		6.2	%
Middle-market		96,217		-0.5	%
Global banking and markets		85,047		11.9	%
Other		-29,672		1.5	%
Gross income, net of provisions & costs		536,033		6.0	%

* Includes Net interest income, net fee income, provision expense, financial transactions, net and operating expenses

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)		4Q09		3Q09		4Q08			4Q09 / 4Q08		4Q / 3Q 09
Net interest income		225,379		217,253		232,203			(2.9	)%	3.7	%
Fee income		64,598		64,756		62,103			4.0	%	(0.2	)%
Financial transactions, net		37,147		31,510		16,951			119.1	%	17.9	%
Provision expense		(67,754	)	(79,122	)	(83,578	)		(18.9	)%	(14.4	)%
Operating expenses		(102,732	)	(102,775	)	(111,430	)		(7.8	)%	(0.0	)%
Gross income, net of provisions / costs		156,638		131,622		116,249			34.7	%	19.0	%
Other operating & non-operating income, net1		(19,329	)	(21,721	)	(22,602	)		(14.5	)%	(11.0	)%
Net income attributable to shareholders		137,309		109,901		93,647			46.6	%	24.9	%
Net income/share (Ch$)		0.73		0.58		0.50			46.6	%	24.9	%
Net income/ADR (US$)2		1.49		1.11		0.82			82.1	%	34.7	%
Total loans		13,727,864		13,583,627		14,585,554			(5.9	)%	1.1	%
Customer funds		14,136,620		14,085,927		14,903,650			(5.1	)%	0.4	%
Shareholders’ equity		1,658,316		1,555,148		1,489,689			11.3	%	6.6	%
Net interest margin		5.8	%	5.7	%	5.8	%
Efficiency ratio		30.5	%	32.6	%	36.6	%
Return on average equity3		34.1	%	28.8	%	25.9	%
NPL / Total loans4		3.0	%	2.8	%	—
Coverage NPL		85.4	%	88.2	%	—
PDL / Total loans5		1.4	%	1.3	%	1.1	%
Coverage ratio of PDLs		180.8	%	192.7	%	170.5	%
Expected Loan Loss6		2.6	%	2.5	%	1.9	%
BIS ratio		15.6	%	15.2	%	13.8	%
Branches		498		502		506
ATMs		1,917		1,991		1,958

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$506.43 per US$.

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

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

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

6.	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. Banks must have 100% coverage of the Expected Loan 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

Retail loans grow 3.1% QoQ in 4Q09. Consumer loans increase 4.1% in the same period

Loans	Quarter ended,						% Change
(Ch$ million)	Dec-09		Sep-09		Dec-08		Dec. 09 / 08			Dec. 09 / Sept. 09
Total loans to individuals1		6,403,087		6,188,291		6,229,521		2.8	%		3.5	%
Consumer loans		2,244,035		2,155,200		2,248,996		(0.2	)%		4.1	%
Residential mortgage loans		4,159,052		4,033,091		3,980,525		4.5	%		3.1	%
SMEs		2,483,100		2,423,328		2,471,356		0.5	%		2.5	%
Institutional lending		282,924		285,090		234,824		20.5	%		(0.8	)%
Retail lending		9,169,111		8,896,709		8,935,701		2.6	%		3.1	%
Middle-Market & Real estate		2,470,136		2,466,786		2,895,035		(14.7	)%		0.1	%
Corporate		1,081,402		1,278,334		2,052,089		(47.3	)%		(15.4	)%
Total loans 2,3		13,727,864		13,583,627		14,585,554		(5.9	)%		1.1	%

Sum of consumer loans and residential mortgage loans.

Total loans gross of loan loss allowances and excluding interbank loans. Total loans include other non-segmented loans and other non-segmented loans.

In 4Q09, total loans increased 1.1% QoQ and decreased 5.9% YoY. The pick up in economic growth has led to a rebound in loan volumes, especially in higher yielding retail banking activities. The lower interest rate and inflation environment has also boosted loan demand. As a result, loans to individuals increased 3.5% QoQ led by a 6.6% QoQ rise in loans to high income individuals. Loan growth to middle and lower income individual increased for the first time in 2009, growing 1.2% QoQ. Lending in Santander Banefe increased 0.9% QoQ. Lending to SMEs continues to be another area of positive growth, increasing 2.5% QoQ.

Growth in lending to individuals resuming in all segments

Loans to individuals, QoQ growth by client segment, %

Investor Relations Department

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

email: rmorenoh@santander.cl

Loan growth trends in the middle market also began to gather momentum in line with economic growth, increasing 0.1% QoQ after decreasing for most of the year. The net contribution to earnings of the middle market was flat YoY as higher spreads, greater fee income and cost savings offset the negative impact of lower loan volumes and higher provision expense.

Corporate lending loan volumes decreased 15.4% QoQ and 47.3% YoY. Despite the stronger 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. 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 positive evolution of non-interest bearing liabilities. In 2009, net income from our Corporate banking business was up 11.9% and net interest income was up 6.2% in this segment in 2009, reflecting our strategy of focusing on profitability vs market share concerns.

FUNDING

Strong growth of non-interest bearing liabilities. Successful issuance of bonds in international markets

Customer funds	Quarter									Change %
(Ch$ million)	Dec-09			Sep-09			Dec-08			Dec. 09 / 08			Dec. 09 / Sept. 09
Non-interest bearing deposits		3,533,534			3,152,739			2,948,162			19.9	%		12.1	%
Time deposits		7,175,257			7,456,731			9,756,266			(26.5	)%		(3.8	)%
Total customer deposits		10,708,791			10,609,470			12,704,428			(15.7	)%		0.9	%
Mutual funds		3,427,829			3,476,457			2,199,222			55.9	%		(1.4	)%
Total customer funds		14,136,620			14,085,927			14,903,650			(5.1	)%		0.4	%
Loans to deposits*		100.9	%		102.4	%		93.9	%

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

Customer funds increased 0.4% QoQ and fell 5.1% YoY. The 12.1% QoQ and 19.9% YoY increase in demand deposits in the quarter was mainly due to clients leaving funds in checking accounts as a result of the sharp decline in interest rates, the deflationary environment and the appreciation of the peso. Our strategic focus on non-lending activities, especially with our large corporate clients, also helped to boost demand deposit volumes.

The 3.8% QoQ and 26.5% YoY decrease in time deposits was mainly due to the deflationary and lower interest rate environment which reduced the attractiveness of time deposits. At the same time in 4Q08, the flow of time deposits increased strongly in the midst of the financial crisis due to the Bank’s stronger risk ratings. Throughout 2009, as markets returned to normality and rates declined, funds flowed back to mutual funds, as reflected in the 55.9% YoY increase in assets under management, and to demand deposits.

Investor Relations Department

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

email: rmorenoh@santander.cl

The decrease in time deposits was also due to Chilean pension funds investing more heavily abroad and lowering their demand for local time deposits. This was offset by the issuance of long-term senior bonds at attractive rates in the local and international markets. Total marketable debt securities outstanding increased 7.6% QoQ and 10.3% YoY. In 4Q09 the Bank re-tapped international markets by issuing US$800 million in 3 year senior notes at an average spread of US Treasury plus 150 basis points. These bonds received a rating that pierced the sovereign ceiling on behalf of Moody’s (Aa3) and where issued at the lowest rate for a Latin American issuer in 2009.

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROE reaches 34.1% in 4Q09 with a BIS ratio of 15.6% and Tier I of 11.7%

Shareholders' Equity	Quarter									Change %
(Ch$ million)	Dec-09			Sep-09			Dec-08			Dec. 09 / 08			Dec. 09 / Sept. 09
Capital		891,303			891,303			891,303			0.0	%		0.0	%
Reserves		51,538			(16,960	)		(123,726	)		(141.7	)%		—	%
Unrealized gain (loss) Available-for-sale financial assets		(26,804	)		(33,001	)		(7,552	)		254.9	%		(18.8	)%
Retained Earnings:		742,279			713,806			729,664			1.7	%		4.0	%
Retained earnings previous periods		440,402			508,045			413,053			6.6	%		(13.3	)%
Net income		431,253			293,944			415,055			3.9	%		46.7	%
Provision for mandatory dividend		(129,376	)		(88,183	)		(98,444	)		31.4	%		46.7	%
Minority Interest		29,799			30,887			25,879			15.1	%		(3.5	)%
Total Equity		1,688,115			1,586,035			1,515,568			11.4	%		6.4	%
Equity attributable to shareholders		1,658,316			1,555,148			1,489,689			11.3	%		6.6	%

Shareholders’ equity totaled Ch$658,316 million (US$3.3 billion) as of December 31, 2009. ROAE in 4Q09 reached 34.1%. This strong profitability was achieved while having one of the highest levels of capitalization in the banking system. Voting common shareholders’ equity is the sole component of our Tier I capital and represented 11.7% of risk weighted assets as of December 2009. The BIS ratio reached 15.6% 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. These strong capital ratios will also support our growth strategy in 2010.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	Dec-09			Sep-09			Dec-08 (not restated)			Dec. 09 / 08			Dec. 09 / Sept. 09
Tier I		1,658,316			1,555,148			1,578,043			5.1	%		6.6	%
Tier II		555,776			563,856			588,657			(5.6	)%		(1.4	)%
Regulatory capital		2,214,092			2,119,004			2,166,700			2.2	%		4.5	%
Risk weighted assets		14,202,118			13,918,058			15,710,202			(9.6	)%		2.0	%
Tier I ratio		11.7	%		11.2	%		10.0	%
BIS ratio		15.6	%		15.2	%		13.8	%

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 increases 3.7% QoQ in 4Q09. Net interest income, net of provisions increases 14.1% in the quarter

Net Interest Income / Margin	Quarter							Change %
(Ch$ million)		4Q09		3Q09		4Q08			4Q09 / 4Q08		4Q / 3Q 09
Client net interest income 1		225,889		222,568		274,900			(17.8	)%	1.5	%
Non-client net interest income 2		(510	)	(5,315	)	(42,697	)		(98.8	)%	(90.4	)%
Net interest income		225,379		217,253		232,203			(2.9	)%	3.7	%
Average interest-earning assets		15,562,696		15,184,842		15,959,439			(2.5	)%	2.5	%
Average loans		13,647,750		13,479,883		14,295,443			(4.5	)%	1.2	%
Net interest margin (NIM) 3		5.8	%	5.7	%	5.8	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		31.4	%	30.3	%	27.8	%
Quarterly inflation rate 4		0.52	%	(0.47	)%	2.21	%
Avg. overnight interbank rate (nominal)		0.43	%	0.46	%	8.24	%
Avg. 10 year Central Bank yield (real)		3.09	%	2.88	%	3.22	%

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 4Q09, net interest income was up 3.7% QoQ and decreased 2.9% YoY. The Bank’s net interest margin reached 5.8% in the quarter compared to 5.7% in 3Q09 and 5.8% in 4Q08.

In order to better 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. The 1.5% QoQ increase in client net interest income was mainly due to an improved asset mix in line with the rebound in retail lending in the period and our focus on spreads throughout the year. The 17.8% YoY decrease in client net interest income 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 and lending to high income individuals in order to control asset quality. The YoY reduction in client net interest income was offset by the favorable trends in asset quality (See Provision Expense). Net of provision expense, net interest income was up 14.1% QoQ and 6.1% YoY.

Investor Relations Department

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

email: rmorenoh@santander.cl

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$510 million in 4Q09. Compared to 3Q09, this lower loss was mainly due to the higher inflation 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. In 4Q09, inflation had a positive impact on net interest income and margins as the Bank maintained a positive UF gap of approximately US$2.5 billion in the quarter. The UF inflation reached 0.52% in 4Q09 compared to (0.47%) in 3Q09 compared. The YoY improvement in non-client interest income was mainly due to a higher spread earned over the Bank’s financial investment portfolio despite the lower inflation in 4Q09 compared to 4Q08.

PROVISION FOR LOAN LOSSES

Net provision expense decreases 14.4% QoQ in 4Q09

Provision for loan losses	Quarter							Change %
(Ch$ million)		4Q09		3Q09		4Q08			4Q09 / 4Q08		4Q / 3Q 09
Gross provisions		(26,412	)	(25,377	)	(17,317	)		52.5	%	4.1	%
Charge-offs		(49,093	)	(65,613	)	(75,984	)		(35.4	)%	(25.2	)%
Gross provisions and charge-offs		(75,505	)	(90,990	)	(93,301	)		(19.1	)%	(17.0	)%
Loan loss recoveries		7,751		11,868		9,723			(20.3	)%	(34.7	)%
Net provisions for loan losses		(67,754	)	(79,122	)	(83,578	)		(18.9	)%	(14.4	)%
Total loans1		13,727,864		13,583,627		14,585,554			(5.9	)%	1.1	%
Total reserves (RLL)		(349,485	)	(338,020	)	(274,205	)		27.5	%	3.4	%
Past due loans2 (PDL)		193,250		175,426		160,824			20.2	%	10.2	%
Non-performing loans3 (NPL)		409,067		383,172		—			—		6.8	%
Gross provision expense / Loans		2.20	%	2.68	%	2.56	%
Cost of credit4		1.97	%	2.33	%	2.29	%
PDL / Total loans		1.41	%	1.29	%	1.10	%
Expected Loan Loss (RLL / Total loans)		2.55	%	2.49	%	1.88	%
Coverage of past due loans5		180.8	%	192.7	%	170.5	%
NPL / Total loans		3.0	%	2.8	%	—
Coverage of NPL6		85.4	%	88.2	%	—

1	Excludes interbank loans.

2	PDL: Past due loans: installments or credit lines more than 90 days overdue.

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

4	Cost of credit: Net provision expense, annualized / Loans.

5	Coverage of PDL: RLL / PDL.

6	Coverage NPL: RLL / NPL.

In 4Q09, the Bank’s net provision expense decreased 14.4% QoQ and 18.9% YoY. This was mainly due to an improvement in asset quality levels among individuals that represent more than 80% of charge-offs. As a result charge-offs in the quarter decreased 25.2% QoQ and 35.4% YoY. 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. This favorable charge-off trend was partially offset by a 4.1% QoQ and 52.5% YoY increase in gross provision expense. This was mainly due to a rise in the expected loss in the middle market as the Bank proactively continued to set aside more provisions for specific loan positions in this segment.

Investor Relations Department

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

email: rmorenoh@santander.cl

By loan product, provision expense was as follows:

Net provisions for loan losses by segment	Quarter									Change %
(Ch$ million)	4Q09			3Q09			4Q08			4Q09 / 4Q08			4Q / 3Q 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		(67,754	)		(79,122	)		(83,578	)		(18.9	)%		(14.4	)%

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

The rise in risk levels in the middle-market explains the rise in the Expected Loan Loss level to 2.55% in the quarter. 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. For the same reasons mentioned above, the past due loan ratio (installments more than 90 days overdue) increased to 1.41% and the non-performing loan ratio (installments plus principal more than 90 days overdue) reached 3.0% at year-end 2009. The coverage of NPL reached 85.4% as of December 2009 with a coverage of consumer loan NPL reaching 198.7%.

Improvement in coverage levels of NPL in 2009

Reserves / NPLs by loan product, %

Investor Relations Department

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

email: rmorenoh@santander.cl

NET FEE INCOME

Solid YoY growth of usage-linked fees

Fee Income	Quarter						Change %
(Ch$ million)	4Q09		3Q09		4Q08		4Q09 / 4Q08			4Q / 3Q 09
Collection fees		16,697		17,168		14,139		18.1	%		(2.7	)%
Credit, debit & ATM card fees		14,002		13,702		11,676		19.9	%		2.2	%
Checking accounts & lines of credit		11,991		12,284		17,558		(31.7	)%		(2.4	)%
Asset management		8,825		8,302		5,853		50.8	%		6.3	%
Guarantees, pledges and other contingent operations		6,159		6,260		5,084		21.1	%		(1.6	)%
Insurance brokerage		4,039		4,221		3,619		11.6	%		(4.3	)%
Fees from brokerage and custody of securities		1,741		1,763		977		78.2	%		(1.2	)%
Other Fees		1,144		1,056		3,197		(64.2	)%		8.3	%
Total fees		64,598		64,756		62,103		4.0	%		(0.2	)%

Net fee income was flat QoQ and increased 4.0% YoY in 4Q09. The Bank has implemented various strategies to promote fee growth throughout the year to compensate for the weaker economic environment and some adverse regulatory changes.

Fees from credit, debit and ATM cards increased 2.2% QoQ and 19.9% YoY. The rise in fees from these businesses reflects the increase in usage of the Bank’s cards mainly as a result of the launching of three new successful credit card products in 2009. As of December 2009, the Bank, with 33.1% of all bank credit cards, generated 38.2% of all monetary purchases. Billing was up 22.9% in real terms YoY compared to 8.1% for the rest of the market, excluding Santander.

Fees from checking accounts and lines of credit decreased 2.4% QoQ and 31.7% YoY. This as a direct result of regulatory changes that prohibits fees charged for unauthorized overdrafts as of 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 decreased 2.7% QoQ. The 18.1% YoY 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.

Fees from asset management increased 6.3% QoQ and 50.8% YoY. Total assets under management reached Ch$3,427,829 million (US$6.8 billion) decreasing 1.4% QoQ and increasing 55.9% YoY. The YoY increase reflects the greater flows of money to both money market and stock funds as investor sentiment improved in the year. The Bank’s commercial teams have also proactively funneled customer deposits to mutual funds, which is a more profitable product for the Bank. The QoQ decline is mainly due to the appreciation of the peso that resulted in translation loss of funds invested abroad.

Investor Relations Department

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

email: rmorenoh@santander.cl

OPERATING EXPENSES AND EFFICIENCY

The efficiency ratio reaches a record-low 30.5% in 4Q09

Operating Expenses	Quarter									Change %
(Ch$ million)	4Q09			3Q09			4Q08			4Q09 / 4Q08			4Q / 3Q 09
Personnel expenses		(56,638	)		(55,751	)		(67,547	)		(16.2	)%		1.6	%
Administrative expenses		(34,051	)		(34,955	)		(32,605	)		4.4	%		(2.6	)%
Depreciation and amortization		(11,968	)		(12,069	)		(11,194	)		6.9	%		(0.8	)%
Deterioration		(75	)		0			(84	)		(10.7	)%		—	%
Operating expenses		(102,732	)		(102,775	)		(111,430	)		(7.8	)%		(0.0	)%
Efficiency ratio*		30.5	%		32.6	%		36.6	%

* 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 4Q09 and the efficiency ratio reached a record-low level of 30.5%. Operating expenses decreased 0.0% QoQ and 7.8% YoY in 3Q09. The main drivers of this higher level of efficiency have been: (i) the lower inflationary environment, (ii) lower expenses from paid-vacation days, (iii) a fall in variable incentives, (iv) a 6.7% reduction in average headcount, (v) lower expenses related to branch openings and (vi) the increase in usage of alternative channels, especially internet. For the whole of 2009, the efficiency ratio reached 32.2%.

Sustained improvement on efficiency

Cost / Income, %

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 activities and the sale of charged-off loans boost financial transactions gains

Net Result from Financial Transactions	Quarter									Change %
(Ch$ million)	4Q09			3Q09			4Q08			4Q09 / 4Q08			4Q / 3Q 09
Net gains from mark-to-market and trading		(48,126	)		51,447			102,222			(147.1	)%		(193.5	)%
Exchange differences, net		85,273			(19,937	)		(85,271	)		(200.0	)%		(527.7	)%
Net results from financial transactions*		37,147			31,510			16,951			119.1	%		17.9	%
Avg. 10 year Central Bank yield (real)		3.09	%		2.88	%		3.22	%
Avg. 10 year Central Bank yield (nominal)		6.13	%		5.70	%		6.50	%

* 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.

The Net results from financial transactions, which include the sum of the net gains from mark-to-market and trading and exchange differences, net totaled a gain of Ch$37,147 million in 4Q09. In order to better understand this line item, we present the net results from financial transactions by business area in the table below.

Net Result from Financial Transactions	Quarter							Change %
(Ch$ million)	4Q09		3Q09		4Q08			4Q09 / 4Q08			4Q / 3Q 09
Santander Global Connect & Market making		25,690		15,335		21,263			20.8	%		67.5	%
ALCO & Proprietary trading		11,457		16,175		(4,312	)		(365.7	)%		—	%
Net results from financial transactions		37,147		31,510		16,951			119.1	%		17.9	%

* 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 17.9% QoQ increase in this line item was mainly due to a 20% QoQ increase in gains from Santander Global Connect, the Bank’s commercial platform for selling treasury products to our clients. This line item also includes a one-time gain of Ch$8,614 million from the sale of charged-off loans in the quarter in line with our strategy of actively managing our balance sheet in order to generate higher profitability and to focus our collection efforts on short-term non-performance. The 119.1% YoY increase in this line item was mainly due to better gains from our proprietary trading business and ALCO positions.

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

The Bank recognizes a one-time gain of Ch$7,072 million from the sale of a fixed asset

Other Income and Expenses	Quarter									Change %
(Ch$ million)	4Q09			3Q09			4Q08			4Q09 / 4Q08			4Q / 3Q 09
Other operating income		24,598			3,219			2,681			817.5	%		664.2	%
Other operating expenses		(14,773	)		(1,922	)		(9,241	)		59.9	%		668.6	%
Income attributable to investments in other companies		(566	)		97			(659	)		(14.1	)%		(683.5	)%
Income tax		(28,348	)		(22,439	)		(13,507	)		109.9	%		26.3	%
Income tax rate		17.1	%		16.9	%		12.4	%

Other operating income totaled a gain of Ch$24,598 million in the quarter. This result includes a one-time gain of Ch$7,072 million from the sale of a building in December 2009. Other operating income also includes the reversal in 4Q09 of Ch$16,700 million in additional provisions for non-specific credit and non-credit contingencies that were recognized by the Bank at the beginning of the year given the risk for further deterioration of the economy and asset quality. In 2Q, 3Q and 4Q09, these non-specific provisions were reversed as the Bank assigned specific credit provisions to loans in Provision Expense.

Other operating expenses totaled a loss of Ch$14,773 million in the quarter. This was mainly due to higher charge-offs of repossessed assets and the setting aside of additional provisions for non-credit contingencies.

Income tax increased 26.3% QoQ as a result of higher income before taxes. The 109.9% YoY increase in income tax expense can be explained by higher net income and the changes in accounting standards adopted in 2009. As a consequence of this change, the Bank’s historical net income before tax figure changed, mainly as a result of the elimination of price level restatement, a non-cash item. In 4Q08, the Bank recognized in its historical income statement a Ch$15,451 million loss from price level restatement, which was tax deductible. As the results from price level restatement are no longer recognized, but historical tax expense remains unchanged under the new accounting standards, the re-stated 4Q08 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

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		Aa3
Subordinated debt		A1
Bank Deposits in Local Currency		Aa3
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 December 2009

Ownership Structure:

ADR price (US$) 2009

12/31/09:			64.78
Maximum (2009):			64.78
Minimum (2009):			31.22

Market Capitalization: US$11,749 million

P/E 12 month trailing*:	12.8
P/BV (09/30/09)**:	3.56
Dividend yield***:	6.3	%

*	Price as of Dec. 31 / 12mth Earnings (2008 non-restated)

**	Price as of Dec. 31 / Book value as of 12/31/09

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

Daily traded volumes 2009

US$ million

Local share price (Ch$) 2009

12/31/09:			30.74
Maximum (2009):			31.00
Minimum (2009):			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	%

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 December 2009, Banco Santander Chile was the largest bank in terms of loans and second in 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.

For more information see www.santander.cl

Banco Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain. Santander has more than 90 million customers, 13,660 branches – more than any other international bank – and 169,460 employees around the world. 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 2009, Santander registered EUR 8,943 million in net attributable profit. Banco Santander’s eligible capital at the close of the third quarter came to EUR 79,704 million, with a surplus of EUR 34,769 million above the required regulatory minimum. With this capital base, the BIS ratio, using Basel II criteria, comes to 14.2%, Tier I to 10.1% and core capital 8.6%. These ratios place Santander among the most solvent banks in the world.

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

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

Cash and balances from Central Bank		4,028,505			2,043,459			906,871			855,411			138.9	%		125.3	%
Funds to be cleared		922,886			468,134			405,829			335,405			39.6	%		15.4	%
Financial assets held for trading		1,574,251			798,539			733,319			1,166,426			(31.5	)%		8.9	%
Investment collateral under agreements to repurchase		27,639			14,020			16,086			-			—	%		(12.8	)%
Derivatives		2,747,911			1,393,878			1,428,496			1,846,509			(24.5	)%		(2.4	)%
Interbank loans		46,072			23,370			56,674			95,499			(75.5	)%		(58.8	)%
Loans, net of reserves for loan losses		26,374,330			13,378,379			13,245,608			14,311,349			(6.5	)%		1.0	%
Available-for-sale financial assets		3,607,866			1,830,090			1,903,217			1,580,240			15.8	%		(3.8	)%
Held-to-maturity investments		-			-			-			-			—	%		—	%
Investments in other companies		14,622			7,417			7,184			7,277			1.9	%		3.2	%
Intangible assets		152,311			77,260			64,858			68,232			13.2	%		19.1	%
Fixed assets		362,981			184,122			186,763			200,389			(8.1	)%		(1.4	)%
Current tax assets		8,952			4,541			4,519			18,715			(75.7	)%		0.5	%
Deferred tax assets		187,736			95,229			105,422			88,825			7.2	%		(9.7	)%
Other assets		892,179			452,558			541,467			508,655			(11.0	)%		(16.4	)%
Total Assets		40,948,242			20,770,996			19,606,313			21,082,932			(1.5	)%		5.9	%

Liabilities and Equity
Total non-interest bearing deposits		6,966,060			3,533,534			3,152,739			2,948,162			19.9	%		12.1	%
Funds to be cleared		543,073			275,474			254,983			142,552			93.2	%		8.0	%
Investments sold under agreements to repurchase		2,197,348			1,114,605			807,034			562,223			98.2	%		38.1	%
Time deposits and savings accounts		14,145,406			7,175,257			7,456,731			9,756,266			(26.5	)%		(3.8	)%
Derivatives		2,659,253			1,348,906			1,318,230			1,469,724			(8.2	)%		2.3	%
Deposits from credit institutions		4,035,071			2,046,790			1,741,380			1,425,067			43.6	%		17.5	%
Marketable debt securities		5,765,749			2,924,676			2,717,508			2,651,372			10.3	%		7.6	%
Other obligations		289,622			146,911			145,925			131,318			11.9	%		0.7	%
Current tax liabilities		125,837			63,831			60,503			791			7969.7	%		5.5	%
Deferred tax liability		6,663			3,380			2,149			19,437			(82.6	)%		57.3	%
Provisions		366,922			186,121			151,724			166,719			11.6	%		22.7	%
Other liabilities		519,263			263,396			211,372			293,733			(10.3	)%		24.6	%
Total Liabilities		37,620,268			19,082,881			18,020,278			19,567,364			(2.5	)%		5.9	%

Equity
Capital		1,757,128			891,303			891,303			891,303			0.0	%		0.0	%
Reserves		101,605			51,539			(16,960	)		51,539			0.0	%		—	%
Unrealized gain (loss) Available-for-sale financial assets		(52,842	)		(26,804	)		(33,001	)		(7,552	)		254.9	%		(18.8	)%
Retained Earnings:		1,463,338			742,278			713,806			554,399			33.9	%		4.0	%
Retained earnings previous periods		868,213			440,401			508,045			237,788			85.2	%		(13.3	)%
Net income		850,178			431,253			293,944			415,055			3.9	%		46.7	%
Provision for mandatory dividend		(255,054	)		(129,376	)		(88,183	)		(98,444	)		31.4	%		46.7	%
Total Shareholders' Equity		3,269,228			1,658,316			1,555,148			1,489,689			11.3	%		6.6	%
Minority Interest		58,746			29,799			30,887			25,879			15.1	%		(3.5	)%
Total Equity		3,327,974			1,688,115			1,586,035			1,515,568			11.4	%		6.4	%
Total Liabilities and Equity		40,948,242			20,770,996			19,606,313			21,082,932			(1.5	)%		5.9	%

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	2009			2009			2008			Dec. 09 / 08
	US$ths.			Ch$ million nominal						% Chg.

Interest revenue		2,381,031			1,207,778			2,061,346			(41.4	)%
Interest expense		(692,483	)		(351,262	)		(1,169,280	)		(70.0	)%
Net interest revenue		1,688,548			856,516			892,066			(4.0	)%
Fee income		622,819			315,925			295,969			6.7	%
Fee expense		(121,824	)		(61,795	)		(52,840	)		16.9	%
Net fee income		500,996			254,130			243,129			4.5	%
Net gains from mark-to-market and trading		7,663			3,887			273,477			(98.6	)%
Exchange differences, net		321,816			163,241			(187,042	)		—	%
Financial transactions, net		329,479			167,128			86,435			93.4	%
Other operating income		65,536			33,243			18,222			82.4	%
Total operating income		2,584,558			1,311,017			1,239,852			5.7	%
Provision expense		(658,151	)		(333,847	)		(287,983	)		15.9	%
Total operating income net of provisions		1,926,407			977,170			951,869			2.7	%
Personnel expenses		(442,551	)		(224,484	)		(246,775	)		(9.0	)%
Administrative expenses		(269,516	)		(136,712	)		(133,682	)		2.3	%
Depreciation and amortization		(91,913	)		(46,623	)		(47,627	)		(2.1	)%
Deterioration		(148	)		(75	)		(84	)		(10.7	)%
Operating expenses		(804,128	)		(407,894	)		(428,168	)		(4.7	)%
Other operating expenses		(87,541	)		(44,405	)		(41,594	)		6.8	%
Total operating expenses		(891,669	)		(452,299	)		(469,762	)		(3.7	)%
Net operating income		1,034,738			524,871			482,107			8.9	%
Income attributable to investments in other companies		586			297			632			(53.0	)%
Net income before taxes		1,035,324			525,168			482,739			8.8	%
Income tax		(175,184	)		(88,862	)		(60,087	)		47.9	%
Net income from ordinary activities		860,140			436,306			422,652			3.2	%
Net income discontinued operations		0			0			0			—	%
Net income attributable to:
Minority interest		9,962			5,053			7,597			(33.5	)%
Net income attributable to shareholders		850,178			431,253			415,055			3.9	%

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	4Q09			4Q09			3Q09			4Q08			4Q09 / 4Q08			4Q / 3Q 09
	US$ths.												% Chg.
Interest revenue		674,939			342,363			279,880			540,779			(36.7	)%		22.3	%
Interest expense		(230,624	)		(116,984	)		(62,627	)		(308,576	)		(62.1	)%		86.8	%
Net interest revenue		444,315			225,379			217,253			232,203			(2.9	)%		3.7	%
Fee income		158,701			80,501			79,584			76,699			5.0	%		1.2	%
Fee expense		(31,351	)		(15,903	)		(14,828	)		(14,596	)		9.0	%		7.2	%
Net fee income		127,349			64,598			64,756			62,103			4.0	%		(0.2	)%
Net gains from mark-to-market and trading		(94,876	)		(48,126	)		51,447			102,222			—	%		—	%
Exchange differences, net		168,108			85,273			(19,937	)		(85,271	)		—	%		—	%
Total financial transactions, net		73,232			37,147			31,510			16,951			119.1	%		17.9	%
Other operating income, net		48,493			24,598			3,219			2,681			817.5	%		664.2	%
Total operating income		693,390			351,722			316,738			313,938			12.0	%		11.0	%
Provision expense		(133,571	)		(67,754	)		(79,122	)		(83,578	)		(18.9	)%		(14.4	)%
Total operating income net of provisions		559,819			283,968			237,616			230,360			23.3	%		19.5	%
Personnel expenses		(111,657	)		(56,638	)		(55,751	)		(67,547	)		(16.2	)%		1.6	%
Administrative expenses		314,590			(34,051	)		(34,955	)		(32,605	)		4.4	%		(2.6	)%
Depreciation and amortization		(23,594	)		(11,968	)		(12,069	)		(11,194	)		6.9	%		(0.8	)%
Deterioration		(148	)		(75	)		0			(84	)		(10.7	)%		—	%
Operating expenses		(202,527	)		(102,732	)		(102,775	)		(111,430	)		(7.8	)%		(0.0	)%
Other operating expenses		(29,124	)		(14,773	)		(1,922	)		(9,241	)		59.9	%		668.6	%
Total operating expenses		(231,651	)		(117,505	)		(104,697	)		(120,671	)		(2.6	)%		12.2	%
Net operating income		328,168			166,463			132,919			109,689			51.8	%		25.2	%
Income Price level restatement attributable to investments in other companies		(1,116	)		(566	)		97			(659	)		(14.1	)%		—	%
Net income before taxes		327,052			165,897			133,016			109,030			52.2	%		24.7	%
Income tax		(55,886	)		(28,348	)		(22,439	)		(13,507	)		109.9	%		26.3	%
Net income from ordinary activities		271,166			137,549			110,577			95,523			44.0	%		24.4	%
Net income discontinued operations		0			0			0			0
Net income attributable to:
Minority interest		473			240			676			1,876			-87.2	%		-64.5	%
Net income attributable to shareholders		270,693			137,309			109,901			93,647			46.6	%		24.9	%

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			Dec-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			2,244,035
Residential mortgage loans		3,454,267			3,636,849			3,852,648			3,980,525			3,927,343			3,970,896			4,033,091			4,159,052
Commercial loans		6,808,174			7,357,979			7,679,640			8,356,033			7,870,502			7,309,545			7,395,336			7,324,777
Total loans		12,421,004			13,199,963			13,773,451			14,585,554			13,985,677			13,401,486			13,583,627			13,727,864
Allowance for loan losses		(236,454	)		(245,823	)		(258,446	)		(274,205	)		(281,265	)		(314,191	)		(338,020	)		(349,485	)
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			13,378,379

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			6,403,087
SMEs		2,201,005			2,314,975			2,418,645			2,471,356			2,385,720			2,370,029			2,423,328			2,483,100
Institutional lending		218,018			230,934			216,016			234,824			254,565			262,915			285,090			282,924
Total retail lending		8,031,853			8,387,893			8,728,472			8,935,701			8,755,460			8,724,885			8,896,709			9,169,111
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			2,470,136
Corporate		1,500,669			1,573,148			1,648,671			2,052,089			1,656,772			1,322,963			1,278,334			1,081,402

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			3,533,534
Time deposits		8,407,623			8,390,418			8,408,557			9,756,266			8,677,857			8,342,396			7,456,731			7,175,257
Total deposits		11,180,191			11,584,841			11,539,470			12,704,428			11,769,867			11,426,210			10,609,470			10,708,791
Mutual funds (Off balance sheet)		2,669,438			3,033,103			2,533,228			2,199,222			3,085,227			3,342,860			3,476,457			3,427,829
Total customer funds		13,849,629			14,617,944			14,072,698			14,903,650			14,855,094			14,769,070			14,085,927			14,136,620
Loans / Deposits1		91.4	%		93.2	%		98.8	%		93.9	%		96.5	%		94.3	%		102.4	%		100.9	%

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			15,562,696
Avg. loans		12,277,279			12,807,117			13,444,859			14,295,443			14,312,882			13,733,919			13,479,883			13,647,750
Avg. assets		17,561,157			18,473,351			19,017,636			20,846,092			20,491,544			19,719,613			19,384,473			20,123,590
Avg. demand deposits		2,807,126			3,019,391			3,007,538			2,996,543			2,952,461			3,087,754			3,079,230			3,278,373
Avg equity		1,345,916			1,279,462			1,322,955			1,446,467			1,517,710			1,495,755			1,528,506			1,608,510
Avg. free funds		4,153,042			4,298,853			4,330,493			4,443,010			4,470,170			4,583,509			4,607,736			4,886,883

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			14,202,118
Tier I		1,398,183			1,350,580			1,477,245			1,578,043			1,543,039			1,497,019			1,555,148			1,658,316
Tier II		415,905			461,436			514,005			588,657			560,232			535,978			563,856			555,776
Regulatory capital		1,814,088			1,812,015			1,991,251			2,166,700			2,103,271			2,032,997			2,119,004			2,214,092
BIS ratio		13.3	%		12.9	%		13.1	%		13.8	%		15.0	%		15.0	%		15.2	%		15.6	%

Profitability & Efficiency
Net interest margin		5.6	%		6.2	%		6.9	%		5.8	%		4.8	%		6.0	%		5.7	%		5.8	%
Efficiency ratio		36.6	%		37.0	%		33.1	%		36.6	%		34.5	%		31.5	%		32.6	%		30.5	%
Avg. Free funds / interest earning assets		30.7	%		30.2	%		29.5	%		27.8	%		28.4	%		30.3	%		30.3	%		31.4	%
Return on avg. equity		25.6	%		32.3	%		40.0	%		25.9	%		20.2	%		28.7	%		28.8	%		34.1	%
Return on avg. assets		2.0	%		2.2	%		2.8	%		1.8	%		1.5	%		2.2	%		2.3	%		2.7	%

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			Dec-09
Asset quality
Non-performing loans (NPLs)2		—			—			—			—			392,802			415,311			383,172			409,067
Past due loans3		135,354			147,874			154,651			160,824			169,220			181,645			175,426			193,250
Expected loss4		236,454			245,823			258,446			274,205			281,265			314,191			338,020			349,485
NPLs / total loans		—			—			—			—			2.81	%		3.10	%		2.82	%		2.98	%
PDL / total loans		1.09	%		1.12	%		1.12	%		1.10	%		1.21	%		1.36	%		1.29	%		1.41	%
Coverage of NPLs (Loan loss allowance / NPLs)		—			—			—			—			71.60	%		75.65	%		88.22	%		85.43	%
Loan loss allowance / PDLs		174.7	%		166.2	%		167.1	%		170.5	%		166.2	%		173.0	%		192.7	%		180.8	%
Expected loss (Loan loss allowances / Loans)		1.90	%		1.86	%		1.88	%		1.88	%		2.01	%		2.34	%		2.49	%		2.55	%
Cost of credit (prov. expense / loans)		1.98	%		2.14	%		2.11	%		2.29	%		2.60	%		2.87	%		2.33	%		1.97	%

Network
Branches		495			497			501			506			500			501			502			498
ATMs		1,989			2,016			1,987			1,958			1,929			1,929			1,991			1,917

Market information (period-end)
Net income per share (Ch$)		0.46			0.55			0.70			0.50			0.41			0.57			0.58			0.73
Net income per ADR (US$)		1.08			1.09			1.32			0.82			0.73			1.12			1.11			1.49
Stock price		21.9			21.4			21.9			20.5			19.1			23.9			30.4			30.7
ADR price		52.3			43.0			42.8			35.0			34.4			46.7			57.5			64.8
Market capitalization (US$mn)		9,479			7,801			7,761			6,353			6,230			8,468			10,436			11,749
Shares outstanding		188,446.1			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			181.4

Other Data
Quarterly inflation rate5		1.02	%		2.17	%		3.63	%		2.21	%		(2.30	)%		(0.13	)%		(0.47	)%		0.52	%
Avg. overnight interbank rate (nominal)		6.22	%		6.39	%		7.58	%		8.24	%		5.49	%		1.40	%		0.46	%		0.43	%
Avg. 10 year Central Bank yield (real)		2.84	%		3.06	%		3.39	%		3.22	%		2.60	%		2.86	%		2.88	%		3.09	%
Avg. 10 year Central Bank yield (nominal)		6.46	%		6.98	%		7.74	%		6.50	%		5.09	%		5.63	%		5.70	%		6.13	%
Observed Exchange rate (Ch$/US$) (period-end)		439.1			520.1			552.5			629.1			582.1			529.07			546.07			506.43

Investor Relations Department

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

email: rmorenoh@santander.cl