Banco Santander-Chile (NYSE:BSAC) Q2 2024 Earnings Conference Call August 2, 2024 10:00 AM ET

Company Participants

Emiliano Muratore - Chief Financial Officer
Carmen Gloria Silva - Economist
Cristian Vicuna - Chief, Strategic Planning & Investor Relations

Conference Call Participants

Yuri Fernandes - JPMorgan
Beatriz Abreu - Goldman Sachs
Daniel Mora - Credicorp Capital
Eric Ito - Bradesco BBI

Operator

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Banco Santander-Chile 2Q 2024 Results Conference Call on the 2nd of August, 2024. At this time, all participant lines are in listen-only mode. The format of the call today will be a presentation by the management team followed by a question-and-answer session.

So without further ado, I would now like to pass the line to Mr. Emiliano Muratore, the CFO of Banco Santander-Chile. Please go ahead, sir.

Emiliano Muratore

Good morning, everyone. Welcome to Banco Santander-Chile's second quarter 2024 results webcast and conference call. This is Emiliano Muratore, CFO, and I'm joined today by Cristian Vicuna, Chief of Strategic Planning and Investor Relations; and Carmen Gloria Silva, our Economist.

The agenda for today is the following: first, Carmen Gloria will discuss the macro scenario, then Cristian will review the strategy and results of the second quarter and guidance for the year, and finally, we will have a Q&A session.

Now I pass it on to Carmen Gloria.

Carmen Gloria Silva

Thank you, Emiliano.

The Chilean economy has continued to show signs of recovery, although at a more moderate pace. Following a better-than-expected performance at the beginning of the year, the preliminary estimate for GDP growth for the second quarter is just 1.6% annually. This result has been influenced by transitory factors, such as the decline in educational services and the calendar effect. However, the seasonally adjusted activity index exhibited growth consistent with its strength.

Domestic demand has been gradually recovering, especially in consumption, while investment performance has remained weak. The contribution of the mining sector to activity growth has been substantial, and the external impulse is greater, given the higher international copper prices and better terms of trade. The labor market continues to gain momentum with the participation rate approaching pre-pandemic levels. Real wages continue to rise, which, along with employment growth, have been supporting private consumption. Looking ahead, we estimate that the economy will continue to grow. However, the recent lower level of activity has led us to revise the annual GDP estimate downward this year, from 2.8% to 2.5% and 2.4% for 2025.