Edgar Filing: BANCO SANTANDER CHILE

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 x Form 40-F o

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 o No x

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 o No x

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 o No x

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.	2Q2010 Earnings Release
2.	1H 2010 Financial Statements (Spanish)
3.	Translated Material Event

SECOND QUARTER 2010

EARNINGS REPORT

Investor Relations Department	0
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

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

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	1
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 1: SUMMARY OF RESULTS

Net income increases 29.3% YoY in 2Q10

Quarterly results, Ch$ billion and change, %

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

In 2Q10, net income attributable to shareholders1 totaled Ch$138,823 million (Ch$0.74 per share and US$1.41/ADR2). These results represent an increase of 29.3% compared to 2Q09 (from now on YoY) and 16.6% compared to 1Q10 (from now on QoQ).

ROAE reaches 33.8% in 2Q10

With these results, the Bank’s ROAE in the quarter reached 33.8%. The Bank currently has one of the highest ROEs and capitalization levels in the Chilean financial system. As of June 30, 2010, the Bank’s BIS ratio reached 14.1% and its Tier I ratio stood at 10.3%. In April 2010, the Bank paid its annual dividend of Ch$1.37/share, 21.2% more than in 2009 and equivalent to 60% of 2009 earnings attributable to shareholders.

1 The results in this report are unaudited.

2 Earnings per ADR is calculated using an exchange rate of Ch$543.09 per US$.

Investor Relations Department	2
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Total loans grow 3.8% QoQ in 2Q10 with loan growth seen in all products and segments

In 2Q10, total loans increased 3.8% QoQ and 8.8% YoY with loan growth in all products and segments. High yielding retail loans increased 3.9% QoQ and 11.4% YoY. The recent economic data for Chile show that economic growth is gaining momentum with a strong rise in investment and consumption levels. Unemployment figures have also been better than expected as well as wage growth. The negative impacts of the earthquake have also been lower than expected. The Bank’s market share increased in various products, especially in consumer banking, which has increased 100 basis points since the beginning of the year.

The funding mix improves and total deposits rise 6.1% QoQ. The Bank’s deposit ratings are upgraded in the quarter

In the quarter, the Bank also improved its funding mix. Total deposits increased 6.1% QoQ. This was led by a 7.2% QoQ and 35.2% YoY increase in demand deposits. Clients also began to increase their savings in time deposits as interest rates and inflation began to rise. In 2Q10, the Bank’s foreign currency time deposit were upgraded by Moody’s from A1 to Aa3 in line with the rise in the sovereign ratings of Chile. The ratio of loans to deposits3 also improved to 99.8% as of June 2010 compared to 104.3% as of March 2010.

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

Investor Relations Department	3
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Net interest margin reaches 6.1% in 2Q10

In 2Q10, net interest income was up 5.8% QoQ and 7.1% YoY. The Bank’s net interest margin reached 6.1% in the quarter. The YoY rise in net interest income was mainly due to (a) the higher inflation rate as the Bank maintains long-term assets (mainly medium and long-term financial investments) that are indexed to the inflation rate, which are partially funded with nominal deposits, (b) loan growth and, (c) an improved funding mix.

Net provision expense decreases 41.7% YoY in 2Q10

In 2Q10, the Bank’s net provision expense decreased 20.3% QoQ and 41.7% YoY. This was mainly due to an improvement in asset quality, especially among individuals. Net provision expense for consumer loans decreased 12.2% QoQ and 53.8% YoY. The NPL ratio of consumer loans decreased from 3.08% as of March 2010 to 2.99% as of June 2010. The coverage ratio of consumer NPLs in the same period increased from 247.2% to 256.6%.

Fees income grows 3.2% YoY in 2Q10

Net fee income increased 4.5% QoQ and 3.2% YoY, led by brokerage related fees. Fees from insurance brokerage increased 89.9% YoY. The Bank’s success in selling insurance online, coupled with an increase in premiums on behalf of insurance underwriters has driven insurance brokerage fees. Fees from the securities brokerage grew 10.1% QoQ and 18.8% YoY. These fees were driven by the Bank’s new internet platform for stock trading and a greater demand for investing in the local stock market. These positive trends were partially offset by lower fees from checking accounts due to regulatory changes introduced in mid-2009 and short-term negative impact on fees in zones more affected by the February earthquake.

The adjusted efficiency ratio reaches 34.4% in 2Q10

Operating expenses in 2Q10 increased 13.5% QoQ and 13.3% YoY. This rise was due, in part, to a Ch$3,517 million one-time charge directly related to impairment charges on fixed assets as a result of the earthquake. This is partially offset by insurance compensation recognized in other operating income. Adjusting for earthquake related effects, the efficiency ratio reached 34.4% in 2Q10. The rise in costs was also due to a rise in personnel expenses, which is directly related to the increase in commercial activity, especially in retail banking.

Investor Relations Department	4
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 33.3% YoY in 2Q10

The positive evolution of our business volumes, in line with our strategic objectives, the better economic environment and the normalization of inflation levels has resulted in strong recurring earnings in the quarter. Gross income, net of provisions & costs, a proxy for recurring earnings, jumped 8.1% QoQ and 33.3% YoY.

(Ch$ million)	2Q10			YoY Chg.			QoQ Chg.
Net interest income		242,782			7.1	%		5.8	%
Fee income		65,158			3.2	%		4.5	%
Financial transactions		25,041			-15.6	%		-15.3	%
Provision expense		(55,952	)		-41.7	%		-20.3	%
Operating expenses		(117,987	)		13.3	%		13.5	%
Gross income, net of provisions & costs		159,042			33.3	%		8.1	%
Other operating and non-operating income, net*		(20,219	)		70.1	%		-27.9	%
Net income attributable to shareholders		138,823			29.3	%		16.6	%

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

Net income attributable to shareholders up 40.1% YoY in the first half of 2010

In the first half of 2010 (1H10), net income attributable to shareholders totaled Ch$257,927 million (Ch$1.37/share and US$2.60/ADR). The ROAE reached 31.2% and the efficiency ratio reached 34.1% in the period. Gross income, net of provisions and costs increased 23.6% led by a 14.1% rise in net interest revenue and a 32.5% decrease in provision expense.

(Ch$ million)	1H10		YoY Chg.
Net interest income		472,180		14.1	%
Fee income		127,509		2.2	%
Financial transactions		54,614		-44.5	%
Provision expense		-126,139		-32.5	%
Operating expenses		-221,986		9.7	%
Gross income, net of provisions & costs		306,178		23.6	%
Other operating and non-operating income, net*		-48,251		-24.3	%
Net income attributable to shareholders		257,927		40.1	%

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

Investor Relations Department	5
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)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Net interest income		242,782			229,398			226,611			7.1	%		5.8	%
Fee income		65,158			62,351			63,145			3.2	%		4.5	%
Core revenues		307,940			291,749			289,756			6.3	%		5.5	%
Financial transactions, net		25,041			29,573			29,656			(15.6	)%		(15.3	)%
Other operating income, net		19,951			6,065			2,928			581.4	%		229.0	%
Provision expense		(55,952	)		(70,187	)		(96,037	)		(41.7	)%		(20.3	)%
Operating expenses		(117,987	)		(103,999	)		(104,099	)		13.3	%		13.5	%
Gross income, net of provisions & costs		159,042			147,136			119,276			33.3	%		8.1	%
Other operating & Non-op. Income 1		(20,219	)		(28,032	)		(11,885	)		70.1	%		(27.9	)%
Net income attributable to shareholders		138,823			119,104			107,391			29.3	%		16.6	%
Net income/share (Ch$)		0.74			0.63			0.57			29.3	%		16.6	%
Net income/ADR (US$) 2		1.41			1.25			1.12			25.9	%		13.0	%
Total loans		14,582,467			14,043,570			13,401,486			8.8	%		3.8	%
Customer funds		14,874,748			14,344,713			14,769,070			0.7	%		3.7	%
Shareholders’ equity		1,665,326			1,683,104			1,497,019			11.2	%		(1.1	)%
Net interest margin		6.1	%		5.8	%		6.0	%
Efficiency ratio		35.2	%		33.0	%		31.5	%
Return on average equity 3		33.8	%		28.6	%		28.7	%
NPL / Total loans 4		2.8	%		2.7	%		3.1	%
Coverage NPLs		93.3	%		97.1	%		75.7	%
PDL / Total loans 5		1.4	%		1.4	%		1.4	%
Coverage ratio of PDLs		193.3	%		189.8	%		173.0	%
Risk Index 6		2.7	%		2.7	%		2.3	%
BIS ratio		14.1	%		14.7	%		15.0	%
Branches		499			498			501
ATMs		1,871			1,856			1,929
Employees		11,133			11,155			11,391

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. Earnings per ADR was calculated using an exchange rate of Ch$543.09 per US$.

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

4.	NPL: Non-performing loans, full balance of loans with one installment 90 days or more overdue.

5.	PDL: Past due loans, all installments and lines of credit more than 90 days overdue.

6.	Risk Index: 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 Risk Index.

Investor Relations Department	6
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 2: BALANCE SHEET ANALYSIS

LOANS

Loans grow 3.8% QoQ in 2Q10 with loan growth in all products and segments

Loans	Quarter ended,						% Change
(Ch$ million)	Jun-10		Mar-10		Jun-09		June 10/ 09			June 10 / Mar. 10
Total loans to individuals1		7,715,031		7,411,686		6,815,737		13.2	%		4.1	%
Consumer loans		2,404,128		2,303,983		2,121,045		13.3	%		4.3	%
Residential mortgage loans		4,360,496		4,219,733		3,970,896		9.8	%		3.3	%
SMEs		2,210,170		2,143,885		2,097,592		5.4	%		3.1	%
Institutional lending		330,980		313,079		291,867		13.4	%		5.7	%
Total retail lending		10,256,181		9,868,650		9,205,196		11.4	%		3.9	%
Middle-Market & Real estate		2,983,741		2,907,944		2,779,165		7.4	%		2.6	%
Corporate		1,347,855		1,279,965		1,266,310		6.4	%		5.3	%
Total loans 2,3		14,582,467		14,043,570		13,401,486		8.8	%		3.8	%

1.	Includes consumer loans, residential mortgage loans and other loans to individuals

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

In 2Q10, total loans increased 3.8% QoQ with loan growth seen in all products and segments. The recent economic data for Chile show that economic growth is gaining momentum with a strong rise in investment and consumption levels. Unemployment figures have also been better than expected as well as wage growth. The negative impacts of the earthquake on loan growth was also lower than expected. The Bank’s market share also increased in the quarter. The most important rise in market share has been in consumer and credit card loans, which increased 100 basis points since the beginning of the year to 26.8%.

Source: Superintendency of Banks of Chile

High yielding retail loans increased 3.9% QoQ. Loans to individuals increased 4.1% QoQ, led by a 4.3% increase in consumer loans. Notable was the 4.9% QoQ and 25.9% YoY increase in credit card consumer loans as the Bank continues to gain market share in credit card purchases. Residential mortgage loans increased 3.3% QoQ as long-term rates remained attractive and lower than expected negative impacts of the earthquake on this market.

Lending to small and middle-sized companies (SMEs) and the middle market increased 3.1% and 2.6% QoQ, respectively. These segments were positively impacted by the rebound in economic growth with some areas still lagging in growth due to the earthquake, but this should begin to turnaround in the second half of the year. Factoring loans and lines of credit, the two highest yielding loans in these segments, increased 54.5% and 15.1% QoQ, respectively.

Investor Relations Department	7
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Corporate lending also showed positive growth in 2Q10, reflecting the stronger evolution of investment levels in the economy and the on-going reconstruction effort.

FUNDING

Strong growth of demand deposits. The Bank’s FX deposit rating are upgraded in the quarter

(Ch$ million)	Jun-10			Mar-10			Jun-09			June 10/ 09			June 10 / Mar. 10
Demand deposits		4,168,884			3,890,230			3,083,814			35.2	%		7.2	%
Time deposits		7,193,376			6,818,939			8,342,396			(13.8	)%		5.5	%
Total customer deposits		11,362,260			10,709,169			11,426,210			(0.6	)%		6.1	%
Mutual funds		3,512,488			3,635,544			3,342,860			5.1	%		(3.4	)%
Total customer funds		14,874,748			14,344,713			14,769,070			0.7	%		3.7	%
Loans to deposits*		99.8	%		104.3	%		94.3	%
Bonds		3,245,162			2,872,100			2,622,275			23.8	%		13.0	%

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

Customer funds increased 3.7% QoQ. The 7.2% QoQ increase in demand deposits in the quarter was mainly due our strategic focus on non-lending activities and the low interest rate environment. Clients also began to increase their savings in time deposits as interest rates and inflation began to rise. The ratio of loans to deposits also improved to 99.8% as of June 2010 compared to 104.3% as of March 2010. December 2009. Going forward, and as the Central Bank continues to rise rates, the growth rate of customer deposits should continue to increase with time deposits growth accelerating while the growth of non-interest bearing deposits should decelerate.

Mutual funds under management decreased 3.4% QoQ as clients moved away from short-term nominal rate fixed income funds as inflation rose and shifted towards time deposits as the Bank proactively funneled money to deposits in order to fund the Bank’s strong loan growth.

In 2Q10, the Bank’s foreign currency time deposit were upgraded by Moody’s from A1 to Aa3 in line with the rise in the sovereign ratings of Chile.

The Bank also continued to access the international bond market in order to maintain strong liquidity levels and to minimize interest rate risk by adequately funding the longer duration portion of the loan book with funding of similar characteristics. For this reason, bonds have increased 13.0% QoQ and 23.8% YoY. In April 2010, the Bank issued a US$500 million 3-year Floating Rate Senior Notes due 2012 in accordance with Rule 144A. This bond received an Aa3 rating and the all-in cost was equivalent to Chilean sovereign risk plus 0 basis points. At the time of issuance, this bond received a rating higher than the sovereign rating of the Republic of Chile4. This was the first short-dated FRN issued by a Latin American bank in recent history. This market is usually only accessible by high grade issuers such as Santander Chile.

4 At the moment of the bond issue Chile’s sovereign rating was A1. In June it was upgraded to Aa3.

Investor Relations Department	8
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROAE of 33.8% reached in 2Q10. Record dividend paid in April 2010

Shareholders' Equity	Quarter									Change %
(Ch$ million)	Jun-10			Mar-10			Jun-09			June 10/ 09			June 10 / Mar. 10
Capital		891,303			891,303			891,303			0.0	%		0.0	%
Reserves		51,538			51,539			(16,960	)		(403.9	)%		(0.0	)%
Unrealized gain (loss) Available-for-sale financial assets		(18,193	)		(32,620	)		(14,199	)		28.1	%		(44.2	)%
Retained Earnings:		740,678			772,882			636,875			16.3	%		(4.2	)%
Retained earnings previous periods		560,129			818,885			508,045			10.3	%		(31.6	)%
Net income		257,927			119,104			184,043			40.1	%		116.6	%
Provision for mandatory dividend		(77,378	)		(165,107	)		(55,213	)		40.1	%		(53.1	)%
Minority Interest		28,460			29,942			30,920			(8.0	)%		(4.9	)%
Total Equity		1,693,786			1,713,046			1,527,939			10.9	%		(1.1	)%
Equity attributable to shareholders		1,665,326			1,683,104			1,497,019			11.2	%		(1.1	)%
ROAE		33.8	%		28.1	%		28.7	%

Shareholders’ equity totaled Ch$1,665,326 million (US$3.0 billion) as of June 30, 2010. ROAE in 2Q10 reached 33.8%. 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 10.3% of risk weighted assets as of June 30, 2010. The BIS ratio reached 14.1% at the same date. In April 2010, the Bank paid its annual dividend of Ch$1.37/share, 21.2% more than in 2009 and equivalent to 60% of 2009 earnings attributable to shareholders.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	Jun-10			Mar-10			Jun-09			June 10/ 09			June 10 / Mar. 10
Tier I		1,665,326			1,683,103			1,497,019			11.2	%		(1.1	)%
Tier II		627,608			599,353			535,978			17.1	%		4.7	%
Regulatory capital		2,292,934			2,282,455			2,032,997			12.8	%		0.5	%
Risk weighted assets		16,210,259			15,513,732			13,544,319			19.7	%		4.5	%
Tier I ratio		10.3	%		10.8	%		11.1	%
BIS ratio		14.1	%		14.7	%		15.0	%

Investor Relations Department	9
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 margin increases to 6.1% in 2Q10

Net Interest Income / Margin	Quarter									Change %
(Ch$ million)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Net interest income		242,782			229,398			226,611			7.1	%		5.8	%
Average interest-earning assets		15,816,902			15,776,237			15,147,554			4.4	%		0.3	%
Average loans		14,291,144			13,879,173			13,733,919			4.1	%		3.0	%
Net interest margin (NIM) 1		6.1	%		5.8	%		6.0	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		36.4	%		33.9	%		30.3	%
Quarterly inflation rate 2		0.97	%		0.27	%		(0.13	)%
Avg. overnight interbank rate (nominal)		0.51	%		0.40	%		1.40	%
Avg. 10 year Central Bank yield (real)		3.04	%		3.14	%		2.86	%

1.	Annualized.

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

The Bank’s net interest margin reached 6.1% in the quarter, improving 30 basis points compared to 1Q10 and 10 basis points compared to 2Q09. Net interest income was up 5.8% QoQ and 7.1% YoY. The YoY rise in net interest income was mainly due to: (a) The higher inflation rate as 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 0.97% in 2Q10 compared to -0.13% in 2Q09; (b) loan growth and; (c) an improved funding mix as the ratio of average equity and non-interest bearing demand deposits to average interest earning assets reached 36.4% in 2Q10 compared to 30.3% in 2Q09.

Compared to 1Q10, the 5.8% increase in net interest income was mainly due to the increase in the loan book, the higher inflation rates and the improved funding mix. This was partially offset by the higher short-term interest rates which increased funding costs. During the quarter the Central Bank began to increase short-term rates which increased 100 basis points in the quarter to 1.5%. Going forward, we expect the Central Bank to continue to rising rates.

Investor Relations Department	10
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

PROVISION FOR LOAN LOSSES

Provision expense down 41.7% YoY as asset quality improves among individuals

Provision for loan losses	Quarter									Change %
(Ch$ million)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Gross provisions		(14,012	)		(26,002	)		(19,402	)		(27.8	)%		(46.1	)%
Charge-offs		(49,506	)		(52,158	)		(87,392	)		(43.4	)%		(5.1	)%
Gross provisions and charge-offs		(63,518	)		(78,160	)		(106,794	)		(40.5	)%		(18.7	)%
Loan loss recoveries		7,566			7,973			10,757			(29.7	)%		(5.1	)%
Net provisions for loan losses		(55,952	)		(70,187	)		(96,037	)		(41.7	)%		(20.3	)%
Total loans 1		14,582,467			14,043,570			13,401,486			8.8	%		3.8	%
Total reserves (RLL)		(387,624	)		(374,064	)		(314,191	)		23.4	%		3.6	%
Past due loans 2 (PDL)		200,524			197,060			181,645			10.4	%		1.8	%
Non-performing loans 3 (NPLs)		415,556			385,211			415,311			0.1	%		7.9	%
Gross provision expense / Loans		1.74	%		2.23	%		3.19	%
Cost of credit 4		1.53	%		2.00	%		2.87	%
PDL / Total loans		1.38	%		1.40	%		1.36	%
Coverage of past due loans 5		193.3	%		189.8	%		173.0	%
Risk Index (RLL / Total loans)		2.66	%		2.66	%		2.34	%
NPL / Total loans		2.85	%		2.74	%		3.10	%
Coverage of NPLs 6		93.3	%		97.1	%		75.7	%

1.	Excludes interbank loans.

2.	PDLs: All installments and lines of credit 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 PDLs:: RLL / PDLs.

6.	Coverage NPL: RLL / NPLs.

In 2Q10, the Bank’s net provision expense decreased 20.3% QoQ and 41.7% YoY. This was mainly due to an improvement in asset quality, especially among individuals. Net provision expense for consumer loans decreased 12.2% QoQ and 53.8% YoY. This was mainly due to the improvement of the economy and the risk measures adopted by the Bank in 2009 to improve credit risk procedures among individuals.

By loan product, provision expense was as follows:

Net provisions for loan losses by segment	Quarter									Change %
(Ch$ million)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Commercial loans*		(15,264	)		(23,231	)		(13,612	)		12.1	%		(34.3	)%
Residential mortgage loans		(4,021	)		(5,197	)		(3,096	)		29.9	%		(22.6	)%
Consumer loans		(36,667	)		(41,759	)		(79,329	)		(53.8	)%		(12.2	)%
Net provisions for loan losses		(55,952	)		(70,187	)		(96,037	)		(41.7	)%		(20.3	)%

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

Investor Relations Department	11
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

The Bank’s Risk Index remained stable QoQ at 2.66%. 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 Risk index. Non-performing loans increased 7.9% QoQ. This was mainly due to the expiration in May 2010 of temporary regulations (applicable during March and April 2010) that allowed banks to report non-performing loans as performing to the extent such loans were performing as of February 27, 2010, the date of the earthquake that stroke Chile’s Central-South zone, and that the bank determined that the borrower missed payments due to this event. The coverage ratio of total NPLs reached 93.3% as of June 2010.

The NPL ratio of consumer loans decreased from 3.08% as of March 2010 to 2.99% as of June 2010. The coverage ratio of consumer NPLs in the same period increased from 247.2% to 256.6%. Since peaking in 2Q09, consumer NPLs have consistently declined as the economy has improved and also as a result of the Bank’s efforts in improving recovery procedures. The earthquake also had a lower effect than expected on the asset quality of consumer loans.

Investor Relations Department	12
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)	2Q10		1Q10		2Q09		2Q10 / 2Q09			2Q / 1Q 10
Collection fees		14,236		13,812		16,552		(14.0	)%		3.1	%
Credit, debit & ATM card fees		13,353		14,351		11,950		11.7	%		(7.0	)%
Checking accounts & lines of credit		10,470		11,265		13,116		(20.2	)%		(7.1	)%
Asset management		9,657		9,391		7,495		28.8	%		2.8	%
Insurance brokerage		8,962		5,106		4,719		89.9	%		75.5	%
Guarantees, pledges and other contingent operations		5,954		5,829		5,923		0.5	%		2.1	%
Fees from brokerage of securities		2,098		1,906		1,766		18.8	%		10.1	%
Other Fees		428		691		1,624		(73.6	)%		(38.1	)%
Total fees		65,158		62,351		63,145		3.2	%		4.5	%

Net fee income increased 4.5% QoQ and 3.2% YoY. The evolution of the main products was the following:

Fees from asset management increased 2.8% QoQ and 28.8% YoY. Total assets under management reached Ch$3,512,488 million (US$6.5 billion) decreasing 3.4% QoQ and increasing 5.1% YoY. The QoQ decrease in volumes under management was mainly due to a reduction in short-term money market funds as the Bank’s commercial teams have also proactively funneled low yielding money market funds to time deposits as the growth rate of the loan book continues to accelerate.

Collection fees in 2Q10 increased 3.1% QoQ. This was mainly due to higher collection of loan insurance policies on behalf of third parties, higher collection fees of consumer loans and higher fees from the payment of services, mainly on-line. The 14.0% YoY decline was mainly due to the temporary interruption of collection activities in the zones more affected by the earthquake.

Fees from credit, debit and ATM cards decreased 7.0% QoQ mainly as a result of an increase in credit card expenses. Merchant discount fees also spiked in 1Q10 after the earthquake due to one-time home improvement purchases in that quarter. YoY credit card fees increased 11.7% as the usage of cards continues to grow and penetration of bank credit cards continues to rise. As of June 2010, the Bank, with 30.9% of all bank credit card accounts, generated 36.6% of all monetary purchases year-to-date. YoY billing was up 34.6% in real terms YoY compared to 29.2% for the rest of the market, excluding Santander.

Investor Relations Department	13
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Fees from checking accounts and lines of credit decreased 7.1% QoQ and 20.2% YoY. The YoY decline was mainly due to regulatory changes that prohibited fees charged for unauthorized overdrafts as of April 2009. The QoQ decrease was mainly due to the temporary waiving of fees in some of the more affected areas by the earthquake.

OPERATING EXPENSES AND EFFICIENCY

Greater commercial activity and inflation driving expenses

Operating Expenses	Quarter									Change %
(Ch$ million)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Personnel expenses		(66,002	)		(55,589	)		(57,701	)		14.4	%		18.7	%
Administrative expenses		(35,707	)		(36,053	)		(34,258	)		4.2	%		(1.0	)%
Depreciation and amortization		(12,592	)		(12,341	)		(12,140	)		3.7	%		2.0	%
Impairment		(3,686	)		(16	)		0			—	%		22937.5	%
Operating expenses		(117,987	)		(103,999	)		(104,099	)		13.3	%		13.5	%
Efficiency ratio*		35.2	%		33.0	%		31.5	%

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

Operating expenses in 2Q10 increased 13.5% QoQ and 13.3% YoY. This was mainly due to Ch$3,686 million in impairment charges on fixed assets of which Ch$3,517 million were a one-time charge directly related to the earthquake. This is partially offset by insurance compensation recognized in other operating income. The net impact on results of earthquake related damage, deducting insurance, was Ch$-1,138 million in 2Q10.

The efficiency ratio reached 35.2% in 2Q10. Adjusting for earthquake related charges and income the efficiency ratio reached 34.4% in 2Q10. Excluding impairments charges, the Banks costs increased 9.9% QoQ and 9.8% YoY. The YoY rise in costs was mainly due to a rise in personnel expenses that is directly related to an increase in commercial activity. The selling of products has been growing at an accelerated pace and as a result variable incentives to commercial teams have increased. This should be compensated in future quarters with stronger core revenue growth. Headcount did not vary significantly in the quarter. The QoQ rise in personnel expenses is also due to seasonal factors related to personnel vacation expenses.

The increase in administrative expenses QoQ and YoY is mainly due to the higher inflation as 2/3 of administrative expenses are linked to inflation.

Investor Relations Department	14
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 treasury activities in the quarter

Net Results from Financial Transactions*	Quarter									Change %
(Ch$ million)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Net gains from mark-to-market and trading		44,922			52,092			(18,863	)		(338.1	)%		(13.8	)%
Exchange differences, net		(19,881	)		(22,519	)		48,519			(141.0	)%		(11.7	)%
Net results from financial transactions		25,041			29,573			29,656			(15.6	)%		(15.3	)%

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.

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$25,041 million in 2Q10. In order to better understand this line item, we present them by business area in the table below.

Net Results from Financial Transactions	Quarter							Change %
(Ch$ million)	2Q10			1Q10		2Q09		2Q10 / 2Q09			2Q / 1Q 10
Santander Global Connect 1 & Market making 2		26,169			19,290		18,374		42.4	%		35.7	%
Financial Management (ALCO) & Prop. trading		(1,128	)		10,283		11,282		—	%		—	%
Net results from financial transactions		25,041			29,573		29,656		(15.6	)%		(15.3	)%

1.	Santander Global Connect is the Bank’s commercial platform for selling treasury products to our clients.

2.	This line item also includes the gain or loss from the sale of charged-off loans.

The 15.3% QoQ and 15.6% YoY decrease in this line item was mainly due lower results from Financial Management, which was negatively affected by rising rates. This also impacted gains from proprietary trading. Proprietary trading represented only 1% of the Bank’s total income in 1H10 and usually represent less than 5% of total income. This was partially offset by gains from the sale of treasury services to companies through the Santander Global Connect platform that increased 35.7% QoQ and 42.4% YoY.

Investor Relations Department	15
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)	2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
Other operating income		19,951			6,065			2,928			581.4	%		229.0	%
Other operating expenses		(17,648	)		(12,556	)		7,821			—	%		40.6	%
Other operating income, net		2,303			(6,491	)		10,749			(78.6	)%		—	%
Income attributable to investments in other companies		223			120			440			(49.3	)%		85.8	%
Income tax		(24,163	)		(21,760	)		(21,816	)		10.8	%		11.0	%
Income tax rate		15.0	%		15.5	%		16.7	%

Other operating income, net totaled a gain of Ch$2,303 million in the quarter. This result was driven by stronger gains from the sale and recovery of repossessed assets, Ch$2,379 million income from insurance claims for earthquake damage and Ch$12,975 million one-time gain from the sale of 16 branches in the quarter. These branches are now rented by the Bank. This was partially offset by higher costs related to repossessed assets and other provisions for future non-credit contingencies.

Income tax increased 11.0% QoQ and 10.8% YoY mainly as a result of the higher income before taxes. The effective tax rate paid in the quarter was 15.0% compared to 16.7% in 2Q09. This lower effective tax rate was mainly due to the higher inflation in 2Q10 compared to 2Q09. For tax purposes the Bank’s still calculates the price level restatement of equity and this computes as a deduction from our taxable income. The statutory tax rate in Chile has not changed and is 17% over net income before taxes. It is expected that the statutory corporate tax rate in Chile will rise to 20% in 2011 and gradually return to 17% in 2013 as a part of the government’s plan to finance the reconstruction efforts.

Investor Relations Department	16
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. Moody’s upgraded the Bank’s foreign currency deposit rating in 2Q10, following a similar rise for Chile’s sovereign rating.

Moody’s		Rating
Foreign currency bank deposits		Aa3
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	17
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

SECTION 5: SHARE PERFORMANCE

As of June 2010

Ownership Structure:

ADR Price Evolution

Santander ADR vs. Global 1200 Financial Index

(Base 100 = 06/30/2008)

ADR price (US$) 2010

06/30/10:			67.09
Maximum (2010):			71.88
Minimum (2010):			59.40

Market Capitalization: US$12,170 million

P/E 12 month trailing*:	12.5
P/BV (06/30/10)**:	4.04
Dividend yield***:	3.9	%

*	Price as of June 30 / 12mth Earnings

**	Price as of June 30 / Book value as of 06/30/10

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

Average daily traded volumes YTD 2010

US$ million

Local Share Price Evolution

Santander vs IPSA Index

(Base 100 = 06/30/2008)

Local share price (Ch$) 2010

06/30/10:			35.67
Maximum (2010):			36.36
Minimum (2010):			30.74

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	%
2010:		1.37		60	%

Investor Relations Department	18
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 June 2010, Banco Santander Chile was the largest bank in terms of loans and equity. The Bank has the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s and Aa3 by Moody’s, which are the same ratings assigned to the Republic of Chile, and A+ by Fitch which pierces the sovereign ceiling. 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	19
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

ANNEX 1: BALANCE SHEET

Unaudited Balance Sheet	Jun-10			Jun-10			Mar-10			Jun-09			June 10/ 09			June / Mar. 10
	US$ths			Ch$mn									% Chg.

Assets
Cash and balances from Central Bank		2,561,819			1,398,881			1,526,810			942,065			48.5	%		(8.4	)%
Funds to be cleared		891,702			486,914			345,521			426,647			14.1	%		40.9	%
Financial assets held for trading		1,487,875			812,454			877,884			1,003,448			(19.0	)%		(7.5	)%
Investment collateral under agreements to repurchase		9,157			5,000			3,679			13,212			(62.2	)%		35.9	%
Derivatives		2,804,183			1,531,224			1,465,832			1,502,295			1.9	%		4.5	%
Interbank loans		75,885			41,437			47,738			57,800			(28.3	)%		(13.2	)%
Loans, net of reserves for loan losses		25,995,499			14,194,842			13,669,507			13,087,295			8.5	%		3.8	%
Available-for-sale financial assets		2,456,361			1,341,296			1,572,839			1,444,802			(7.2	)%		(14.7	)%
Held-to-maturity investments		-			-			-			-			—	%		—	%
Investments in other companies		11,907			6,502			7,095			7,145			(9.0	)%		(8.4	)%
Intangible assets		130,160			71,074			72,290			69,356			2.5	%		(1.7	)%
Fixed assets		298,844			163,184			179,981			190,997			(14.6	)%		(9.3	)%
Current tax assets		10,006			5,464			4,649			4,826			13.2	%		17.5	%
Deferred tax assets		204,996			111,938			103,186			94,369			18.6	%		8.5	%
Other assets		1,090,094			595,246			572,698			561,407			6.0	%		3.9	%
Total Assets		38,028,488			20,765,456			20,449,709			19,405,664			7.0	%		1.5	%

Liabilities and Equity
Demand deposits		7,634,620			4,168,884			3,890,230			3,083,814			35.2	%		7.2	%
Funds to be cleared		555,273			303,207			197,908			195,249			55.3	%		53.2	%
Investments sold under agreements to repurchase		267,554			146,098			762,703			512,279			(71.5	)%		(80.8	)%
Time deposits and savings accounts		13,173,475			7,193,376			6,818,939			8,342,396			(13.8	)%		5.5	%
Derivatives		2,290,169			1,250,547			1,358,323			1,462,558			(14.5	)%		(7.9	)%
Deposits from credit institutions		3,846,230			2,100,234			2,005,763			1,140,901			84.1	%		4.7	%
Marketable debt securities		5,942,976			3,245,162			2,872,100			2,622,275			23.8	%		13.0	%
Other obligations		289,514			158,089			174,497			149,046			6.1	%		(9.4	)%
Current tax liabilities		39,659			21,656			74,440			34,786			(37.7	)%		(70.9	)%
Deferred tax liability		4,893			2,672			1,650			9,567			(72.1	)%		61.9	%
Provisions		349,787			191,001			266,699			122,990			55.3	%		(28.4	)%
Other liabilities		532,449			290,744			313,411			201,864			44.0	%		(7.2	)%
Total Liabilities		34,926,600			19,071,670			18,736,663			17,877,725			6.7	%		1.8	%

Equity
Capital		1,632,274			891,303			891,303			891,303			0.0	%		0.0	%
Reserves		94,385			51,539			51,539			(16,960	)		—	%		0.0	%
Unrealized gain (loss) Available-for-sale financial assets		(33,317	)		(18,193	)		(32,620	)		(14,199	)		28.1	%		(44.2	)%
Retained Earnings:		1,356,427			740,677			772,882			636,875			16.3	%		(4.2	)%
Retained earnings previous periods		1,025,782			560,128			818,885			508,045			10.3	%		(31.6	)%
Net income		472,351			257,927			119,104			184,043			40.1	%		116.6	%
Provision for mandatory dividend		(141,705	)		(77,378	)		(165,107	)		(55,213	)		40.1	%		(53.1	)%
Total Shareholders' Equity		3,049,768			1,665,326			1,683,104			1,497,019			11.2	%		(1.1	)%
Minority Interest		52,120			28,460			29,942			30,920			(8.0	)%		(4.9	)%
Total Equity		3,101,888			1,693,786			1,713,046			1,527,939			10.9	%		(1.1	)%
Total Liabilities and Equity		38,028,488			20,765,456			20,449,709			19,405,664			7.0	%		1.5	%

Investor Relations Department	20
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

ANNEX 2: YTD INCOME STATEMENT

YTD Income Statement Unaudited	Jun-10			June-10			June-09			June 10/ 09
	US$ths.			Ch$ million						% Chg.

Interest revenue		1,263,908			690,157			585,535			17.9	%
Interest expense		(399,189	)		(217,977	)		(171,651	)		27.0	%
Net interest income		864,719			472,180			413,884			14.1	%
Fee income		296,616			161,967			155,840			3.9	%
Fee expense		(63,104	)		(34,458	)		(31,064	)		10.9	%
Net fee income		233,512			127,509			124,776			2.2	%
Net gains from mark-to-market and trading		177,665			97,014			566			17040.3	%
Exchange differences, net		(77,649	)		(42,400	)		97,905			—	%
Financial transactions, net		100,016			54,614			98,471			(44.5	)%
Other operating income		47,644			26,016			5,426			379.5	%
Total operating income		1,245,891			680,319			642,557			5.9	%
Provision expense		(231,003	)		(126,139	)		(186,971	)		(32.5	)%
Total operating income net of provisions		1,014,889			554,180			455,586			21.6	%
Personnel expenses		(222,674	)		(121,591	)		(112,095	)		8.5	%
Administrative expenses		(131,417	)		(71,760	)		(67,706	)		6.0	%
Depreciation and amortization		(45,661	)		(24,933	)		(22,586	)		10.4	%
Impairment		(6,780	)		(3,702	)		0			—	%
Operating expenses		(406,531	)		(221,986	)		(202,387	)		9.7	%
Other operating expenses		(55,314	)		(30,204	)		(27,710	)		9.0	%
Total operating expenses		(461,844	)		(252,190	)		(230,097	)		9.6	%
Net operating income		553,045			301,990			225,489			33.9	%
Income attributable to investments in other companies		628			343			766			(55.2	)%
Net income before taxes		553,673			302,333			226,255			33.6	%
Income tax		(84,100	)		(45,923	)		(38,075	)		20.6	%
Net income from ordinary activities		469,572			256,410			188,180			36.3	%
Net income discontinued operations		0			0			0			—	%
Net income attributable to:
Minority interest		(2,778	)		(1,517	)		4,137			—	%
Net income attributable to shareholders		472,351			257,927			184,043			40.1	%

Investor Relations Department	21
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	2Q10			2Q10			1Q10			2Q09			2Q10 / 2Q09			2Q / 1Q 10
	US$ths.			Ch$mn									% Chg.
Interest revenue		675,614			368,919			321,238			338,744			8.9	%		14.8	%
Interest expense		(230,999	)		(126,137	)		(91,840	)		(112,133	)		12.5	%		37.3	%
Net interest income		444,615			242,782			229,398			226,611			7.1	%		5.8	%
Fee income		151,649			82,808			79,159			78,677			5.3	%		4.6	%
Fee expense		(32,323	)		(17,650	)		(16,808	)		(15,532	)		13.6	%		5.0	%
Net fee income		119,326			65,158			62,351			63,145			3.2	%		4.5	%
Net gains from mark-to-market and trading		82,267			44,922			52,092			(18,863	)		(338.1	)%		—	%
Exchange differences, net		(36,409	)		(19,881	)		(22,519	)		48,519			—	%		(11.7	)%
Total financial transactions, net		45,858			25,041			29,573			29,656			(15.6	)%		(15.3	)%
Other operating income, net		36,537			19,951			6,065			2,928			581.4	%		229.0	%
Total operating income		646,336			352,932			327,387			322,340			9.5	%		7.8	%
Provision expense		(102,467	)		(55,952	)		(70,187	)		(96,037	)		(41.7	)%		(20.3	)%
Total operating income net of provisions		543,870			296,980			257,200			226,303			31.2	%		15.5	%
Personnel expenses		(120,872	)		(66,002	)		(55,589	)		(57,701	)		14.4	%		18.7	%
Administrative expenses		320,531			(35,707	)		(36,053	)		(34,258	)		4.2	%		(1.0	)%
Depreciation and amortization		(23,060	)		(12,592	)		(12,341	)		(12,140	)		3.7	%		2.0	%
Impairment		(6,750	)		(3,686	)		(16	)		0			—	%		22937.5	%
Operating expenses		(216,074	)		(117,987	)		(103,999	)		(104,099	)		13.3	%		13.5	%
Other operating expenses		(32,319	)		(17,648	)		(12,556	)		7,821			—	%		40.6	%
Total operating expenses		(248,393	)		(135,635	)		(116,555	)		(96,278	)		40.9	%		16.4	%
Net operating income		295,477			161,345			140,645			130,025			24.1	%		14.7	%
Income attributable to investments in other companies		408			223			120			440			(49.3	)%		85.8	%
Net income before taxes		295,885			161,568			140,765			130,465			23.8	%		14.8	%
Income tax		(44,251	)		(24,163	)		(21,760	)		(21,816	)		10.8	%		11.0	%
Net income from ordinary activities		251,634			137,405			119,005			108,649			26.5	%		15.5	%
Net income discontinued operations		0			0			0			0
Net income attributable to:
Minority interest		(2,597	)		(1,418	)		(99	)		1,258			—	%		1332.3	%
Net income attributable to shareholders		254,231			138,823			119,104			107,391			29.3	%		16.6	%

Investor Relations Department	22
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-09			Jun-09			Sep-09			Dec-09			Mar-10			Jun-10
(Ch$ millions)
Loans
Consumer loans		2,187,832			2,121,045			2,155,200			2,244,035			2,303,983			2,404,128
Residential mortgage loans		3,927,343			3,970,896			4,033,091			4,159,052			4,219,733			4,360,496
Commercial loans		7,870,502			7,309,545			7,395,336			7,324,777			7,519,854			7,817,843
Total loans		13,985,677			13,401,486			13,583,627			13,727,864			14,043,570			14,582,467
Allowance for loan losses		(281,265	)		(314,191	)		(338,020	)		(349,485	)		(374,064	)		(387,624	)
Total loans, net of allowances		13,704,412			13,087,295			13,245,607			13,378,379			13,669,506			14,194,843

Customer funds
Demand deposits		3,092,010			3,083,814			3,152,739			3,533,534			3,890,230			4,168,884
Time deposits		8,677,857			8,342,396			7,456,731			7,175,257			6,818,939			7,193,376
Total deposits		11,769,867			11,426,210			10,609,470			10,708,791			10,709,169			11,362,260
Mutual funds (Off balance sheet)		3,085,227			3,342,860			3,476,457			3,427,829			3,635,544			3,512,488
Total customer funds		14,855,094			14,769,070			14,085,927			14,136,620			14,344,713			14,874,748
Loans / Deposits1		96.5	%		94.3	%		102.4	%		100.9	%		104.3	%		99.8	%

Average balances
Avg. interest earning assets		15,742,285			15,147,554			15,184,842			15,562,696			15,776,237			15,816,902
Avg. loans		14,312,882			13,733,919			13,479,883			13,647,750			13,879,173			14,291,144
Avg. assets		20,491,544			19,719,613			19,384,473			20,123,590			20,738,402			20,742,244
Avg. demand deposits		2,952,461			3,087,754			3,079,230			3,278,373			3,678,104			4,107,978
Avg equity		1,517,710			1,495,755			1,528,506			1,608,510			1,665,977			1,644,453
Avg. free funds		4,470,170			4,583,509			4,607,736			4,886,883			5,344,081			5,752,431

Capitalization
Risk weighted assets		13,979,591			13,544,319			13,918,058			14,202,118			15,513,732			16,210,259
Tier I (Shareholders' equity)		1,543,039			1,497,019			1,555,148			1,658,316			1,683,103			1,665,326
Tier II		560,232			535,978			563,856			555,776			599,353			627,608
Regulatory capital		2,103,271			2,032,997			2,119,004			2,214,092			2,282,455			2,292,934
Tier I ratio		11.0	%		11.1	%		11.2	%		11.7	%		10.8	%		10.3	%
BIS ratio		15.0	%		15.0	%		15.2	%		15.6	%		14.7	%		14.1	%

Profitability & Efficiency
Net interest margin		4.8	%		6.0	%		5.7	%		5.8	%		5.8	%		6.1	%
Efficiency ratio		34.5	%		31.5	%		32.6	%		30.5	%		33.0	%		35.2	%
Avg. Free funds / interest earning assets		28.4	%		30.3	%		30.3	%		31.4	%		33.9	%		36.4	%
Return on avg. equity		20.2	%		28.7	%		28.8	%		34.1	%		28.6	%		33.8	%
Return on avg. assets		1.5	%		2.2	%		2.3	%		2.7	%		2.3	%		2.7	%

Investor Relations Department	23
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

	Mar-09			Jun-09			Sep-09			Dec-09			Mar-10			Jun-10
Asset quality
Non-performing loans (NPLs)2		392,802			415,311			383,172			409,067			385,211			415,556
Past due loans3		169,220			181,645			175,426			193,250			197,060			200,524
Expected loss4		281,265			314,191			338,020			349,485			374,064			387,624
NPLs / total loans		2.81	%		3.10	%		2.82	%		2.98	%		2.74	%		2.85	%
PDL / total loans		1.21	%		1.36	%		1.29	%		1.41	%		1.40	%		1.38	%
Coverage of NPLs (Loan loss allowance / NPLs)		71.60	%		75.65	%		88.22	%		85.43	%		97.11	%		93.28	%
Coverage of NPLs (Loan loss allowance / PDLs)		166.2	%		173.0	%		192.7	%		180.8	%		189.8	%		193.3	%
Expected loss (Loan loss allowances / Loans)		2.01	%		2.34	%		2.49	%		2.55	%		2.66	%		2.66	%
Cost of credit (prov. expense / loans)		2.60	%		2.87	%		2.33	%		1.97	%		2.00	%		1.53	%

Network
Branches		500			501			502			498			498			499
ATMs		1,929			1,929			1,991			1,917			1,856			1,871
Employees		11,578			11,391			11,280			11,204			11,155			11,133

Market information (period-end)
Net income per share (Ch$)		0.41			0.57			0.58			0.73			0.63			0.74
Net income per ADR (US$)		0.73			1.12			1.11			1.49			1.25			1.41
Stock price		19.1			23.9			30.4			30.7			34.4			35.7
ADR price		34.4			46.7			57.5			64.8			68.2			67.1
Market capitalization (US$mn)		6,230			8,468			10,436			11,749			12,373			12,168
Shares outstanding		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

Other Data
Quarterly inflation rate5		(2.30	)%		(0.13	)%		(0.47	)%		0.52	%		0.27	%		0.97	%
Avg. overnight interbank rate (nominal)		5.49	%		1.40	%		0.46	%		0.43	%		0.40	%		0.51	%
Avg. 10 year Central Bank yield (real)		2.60	%		2.86	%		2.88	%		3.09	%		3.14	%		3.04	%
Avg. 10 year Central Bank yield (nominal)		5.09	%		5.63	%		5.70	%		6.13	%		6.41	%		6.42	%
Observed Exchange rate (Ch$/US$) (period-end)		582.1			529.07			546.07			506.43			526.29			543.09

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 Total installments plus lines of credit more than 90 days overdue

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	24
Bandera 140 19th Floor, Santiago, Chile, Tel: 562-320-8284, fax: 562-671-6554,
email: rmorenoh@santander.cl

Contenido

Estados Financieros Consolidados

ESTADOS INTERMEDIOS DE SITUACIÓN FINANCIERA CONSOLIDADOS	3
ESTADOS INTERMEDIOS CONSOLIDADOS DE RESULTADOS	4
ESTADOS INTERMEDIOS CONSOLIDADOS DE RESULTADOS INTEGRALES	5
ESTADOS INTERMEDIOS DE CAMBIOS EN EL PATRIMONIO	6
ESTADOS INTERMEDIOS CONSOLIDADOS DE FLUJOS DE EFECTIVO	7
NOTA N°01 - PRINCIPALES CRITERIOS CONTABLES UTILIZADOS:	9
NOTA N°02 - CAMBIOS CONTABLES:	38
NOTA N°03 - HECHOS RELEVANTES:	39
NOTA N°04 - SEGMENTOS DE NEGOCIO:	41
NOTA N°05 - EFECTIVO Y EQUIVALENTE DE EFECTIVO:	48
NOTA N°06 - INSTRUMENTOS PARA NEGOCIACIÓN:	49
NOTA N°07 - CONTRATOS DE DERIVADOS FINANCIEROS Y COBERTURAS CONTABLES:	50
NOTA N°08 - ADEUDADO POR BANCOS:	56
NOTA N°09 - CRÉDITOS Y CUENTAS POR COBRAR A CLIENTES:	57
NOTA N°10 - INSTRUMENTOS DE INVERSIÓN:	61
NOTA N°11 - INTANGIBLES:	62
NOTA N°12 - ACTIVO FIJO:	64
NOTA N°13 - IMPUESTOS CORRIENTES E IMPUESTOS DIFERIDOS:	67
NOTA N°14 - OTROS ACTIVOS:	70
NOTA N°15 - DEPÓSITOS Y OTRAS CAPTACIONES:	71
NOTA N°16 - INSTRUMENTOS DE DEUDA EMITIDOS Y OTRAS OBLIGACIONES:	72
NOTA N°17 - VENCIMIENTO DE ACTIVOS Y PASIVOS:	77
NOTA N°18 - OTROS PASIVOS:	81
NOTA N°19 - CONTINGENCIAS Y COMPROMISOS:	82
NOTA N°20 - REQUERIMIENTOS DE CAPITAL (BASILEA):	84
NOTA N°21 - INTERÉS NO CONTROLADOR:	86
NOTA N°22 - INTERESES Y REAJUSTES:	89
NOTA N°23 - COMISIONES:	91
NOTA N°24 - RESULTADOS DE OPERACIONES FINANCIERAS:	92
NOTA N°25 - RESULTADO NETO DE CAMBIO:	92
NOTA N°26 - PROVISIONES POR RIESGO DE CRÉDITO:	93
NOTA N°27 - REMUNERACIONES Y GASTOS DEL PERSONAL:	95
NOTA N°28 - GASTOS DE ADMINISTRACIÓN:	96
NOTA N°29 - DEPRECIACIONES Y AMORTIZACIONES:	97
NOTA N°30 - OTROS INGRESOS Y GASTOS OPERACIONALES:	98
NOTA N°31 - OPERACIONES CON PARTES RELACIONADAS:	100
NOTA N°32 - VALOR RAZONABLE DE ACTIVOS Y PASIVOS FINANCIEROS:	105
NOTA N°33 - HECHOS POSTERIORES:	107

		Al 30 de Junio de 2010			Al 31 de Diciembre de 2009
	NOTA	MM$			MM$

ACTIVOS
Efectivo y depósitos en bancos	5		1.398.881			2.043.458
Operaciones con liquidación en curso	5		486.914			468.134
Instrumentos para negociación	6		812.454			798.539
Contratos de retrocompra y préstamos de valores			5.000			14.020
Contratos de derivados financieros	7		1.531.224			1.393.878
Adeudado por bancos	8		41.437			23.370
Créditos y cuentas por cobrar a clientes	9		14.194.842			13.378.379
Instrumentos de inversión disponibles para la venta	10		1.341.296			1.830.090
Instrumentos de inversión hasta el vencimiento	10		-			-
Inversiones en sociedades			6.502			7.417
Intangibles	11		71.074			77.260
Activo fijo	12		163.184			184.122
Impuestos corrientes	13		5.464			4.541
Impuestos diferidos	13		111.938			95.229
Otros activos	14		595.246			452.559
TOTAL ACTIVOS			20.765.456			20.770.996

PASIVOS
Depósitos y otras obligaciones a la vista	15		4.168.884			3.533.534
Operaciones con liquidación en curso	5		303.207			275.474
Contratos de retrocompra y préstamos de valores			146.098			1.114.605
Depósitos y otras captaciones a plazo	15		7.193.376			7.175.257
Contratos de derivados financieros	7		1.250.547			1.348.906
Obligaciones con bancos			2.100.234			2.046.790
Instrumentos de deuda emitidos	16		3.245.162			2.924.676
Otras obligaciones financieras	16		158.089			146.911
Impuestos corrientes	13		21.656			63.831
Impuestos diferidos	13		2.672			3.380
Provisiones			191.001			186.121
Otros pasivos	18		290.744			263.396

TOTAL PASIVOS			19.071.670			19.082.881

PATRIMONIO

Atribuible a propietarios del Banco:			1.665.326			1.658.316
Capital			891.303			891.303
Reservas			51.539			51.539
Cuentas de valoración			(18.193	)		(26.804	)
Utilidades retenidas			740.677			742.278
Utilidades retenidas de ejercicios anteriores			560.128			440.401
Utilidad (pérdida) del ejercicio			257.927			431.253
Menos: Provisión para dividendos mínimos			(77.378	)		(129.376	)
Interés no controlador	21		28.460			29.799

TOTAL PATRIMONIO			1.693.786			1.688.115

TOTAL PASIVOS Y PATRIMONIO			20.765.456			20.770.996

		Por el trimestre terminado al 30 de Junio de						Por el período de 06 meses terminado al 30 de Junio de
		2010			2009			2010			2009
	NOTA	MM$			MM$			MM$			MM$

RESULTADOS OPERACIONALES

Ingresos por intereses y reajustes	22		368.919			338.744			690.157			585.535
Gastos por intereses y reajustes	22		(126.137	)		(112.133	)		(217.977	)		(171.651	)

Ingreso neto por intereses y reajustes			242.782			226.611			472.180			413.884

Ingresos por comisiones	23		82.808			78.677			161.967			155.840
Gastos por comisiones	23		(17.650	)		(15.532	)		(34.458	)		(31.064	)

Ingreso neto de comisiones			65.158			63.145			127.509			124.776

Utilidad neta de operaciones financieras	24		44.922			(18.863	)		97.014			566
Utilidad (pérdida) de cambio neta	25		(19.881	)		48.519			(42.400	)		97.905
Otros ingresos operacionales	30		19.951			2.928			26.016			5.426

Total Ingresos operacionales			352.932			322.340			680.319			642.557

Provisiones por riesgo de crédito	26		(55.952	)		(96.037	)		(126.139	)		(186.971	)

INGRESO OPERACIONAL NETO			296.980			226.303			554.180			455.586

Remuneraciones y gastos del personal	27		(66.002	)		(57.701	)		(121.591	)		(112.095	)
Gastos de administración	28		(35.707	)		(34.258	)		(71.760	)		(67.706	)
Depreciaciones y amortizaciones	29		(12.592	)		(12.140	)		(24.933	)		(22.586	)
Deterioro	12		(3.686	)		-			(3.702	)		-
Otros gastos operacionales	30		(17.648	)		7.821			(30.204	)		(27.710	)

Total Gastos operacionales			(135.635	)		(96.278	)		(252.190	)		(230.097	)

RESULTADO OPERACIONAL			161.345			130.025			301.990			225.489

Resultado por inversiones en sociedades			223			440			343			766

Resultado antes de impuesto a la renta			161.568			130.465			302.333			226.255

Impuesto a la renta	13		(24.163	)		(21.816	)		(45.923	)		(38.075	)

UTILIDAD CONSOLIDADA DEL EJERCICIO			137.405			108.649			256.410			188.180

Atribuible a:
Propietarios del Banco			138.823			107.391			257.927			184.043
Interés no controlador	21		(1.418	)		1.258			(1.517	)		4.137

Utilidad por acción atribuible a propietarios del Banco:
(expresada en pesos)
Utilidad básica			0,737			0,570			1,369			0,977
Utilidad diluida			0,737			0,570			1,369			0,977

		Por el trimestre terminado al 30 de Junio						Por el período de 06 meses terminado al 30 de Junio
		2010			2009			2010			2009
	NOTA	MM$			MM$			MM$			MM$

UTILIDAD CONSOLIDADA DEL EJERCICIO			137.405			108.649			256.410			188.180

OTROS RESULTADOS INTEGRALES

Instrumentos de inversión disponibles para la venta	12		142			(10.619	)		7.720			10.238
Coberturas de flujo de efectivo			17.518			3.171			2.873			(17.417	)

Otros resultados integrales antes de impuesto a la renta			17.660			(7.448	)		10.593			(7.179	)

Impuesto a la renta relacionado con otros resultados integrales	16		(3.002	)		1.267			(1.801	)		1.220

Total de otros resultados integrales			14.658			(6.181	)		8.792			(5.959	)

RESULTADOS INTEGRALES CONSOLIDADOS DEL			152.063			102.468			265.202			182.221

Atribuible a:
Propietarios del Banco			153.250			101.048			266.538			177.396
Interés no controlador			(1.187	)		1.420			(1.336	)		4.825

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

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

- Año 2009 (Junta Accionistas Abril 2010)		431.253		150.939		258.752		60	%		1,373

	al 30 de Junio de			al 30 de Junio de
ESTADO FLUJO EFECTIVO	2010			2009
	MM$			MM$

A - FLUJOS DE EFECTIVO DE LAS ACTIVIDADES DE OPERACION:
UTILIDAD CONSOLIDADA ANTES DE IMPUESTO A LA RENTA		302.333			226.255
Cargos (abonos) a resultados que no significan movimiento de efectivo		(494.376	)		(356.954	)
Depreciaciones y amortizaciones		24.933			22.586
Deterioro de activo fijo		3.702			-
Provisiones por activos riesgosos		141.678			206.625
Provisión ajuste a valor de mercado de inversiones		(29.926	)		(41.227	)
Utilidad por inversiones en sociedades		(343	)		(766	)
Utilidad en venta de bienes recibidos en pago		1.698			2.242
Utilidad en venta de participación en otras sociedades		(1.847	)		(1.852	)
Utilidad en venta de activos fijos		(13.195	)		(208	)
Castigo de bienes recibidos en pago		1.548			3.033
Ingresos netos por intereses		(472.180	)		(413.884	)
Ingresos netos comisiones		(127.509	)		(124.776	)
Cambios en los activos y pasivos por impuestos diferidos		(22.935	)		(8.727	)
Aumento/disminución de activos y pasivos de operación		(170.954	)		420.529
Disminución (aumento) de créditos y cuentas por cobrar a clientes		(871.161	)		1.203.551
Disminución (aumento) de inversiones financieras		536.934			251.319
Disminución (aumento) por contratos de retrocompra (activos)		5.000			13.212
Disminución (aumento) de adeudados por bancos		(18.067	)		36.693
Disminución de bienes recibidos o adjudicados en pago		10.348			15.252
Aumento de acreedores en cuentas corrientes		512.518			110.027
Aumento (disminución) de depósitos y otras captaciones a plazo		49.681			(1.471.377	)
Aumento de obligaciones con bancos del país		-			-
Aumento (disminución) de otras obligaciones a la vista o a plazo		66.371			42.505
Aumento de obligaciones con bancos del exterior		78.088			(282.280	)
Disminución de obligaciones con el Banco Central de Chile		(342	)		(928	)
Aumento por contratos de retrocompra (pasivos)		(991.494	)		(50.955	)
Disminución de otros pasivos de corto plazo		(2.583	)		13.810
Aumento neto de otros activos y pasivos		(125.914	)		174.252
Emisión de letras de crédito		-			4.506
Rescate de letras de crédito		(71.721	)		(52.544	)
Emisión de bonos corrientes		426.794			194.966
Rescate de bonos corrientes y pago de intereses		(156.273	)		(11.562	)
Emisión de bonos subordinados		12.682			6.380
Rescate de bonos subordinados y pago de intereses		(17.140	)		(24.697	)
Intereses y reajustes percibidos		481.545			305.661
Intereses y reajustes pagados		(178.760	)		(144.753	)
Dividendos recibidos de inversiones en sociedades		954			790
Comisiones percibidas		161.967			155.840
Comisiones pagadas		(34.458	)		(31.064	)
Impuestos a la renta		(45.923	)		(38.075	)
Total flujos originados por actividades operacionales		(362.997	)		289.830

	Porcentaje de Participación
	Al 30 de Junio de						Al 31 de Diciembre de						Al 30 de Junio de
	2010						2009						2009
Sociedades dependientes	Directo %		Indirecto %		Total %		Directo %		Indirecto %		Total %		Directo %		Indirecto %		Total %

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

	Porcentaje de Participación
Entidades Asociadas	Al 30 de Junio de			Al 31 de Diciembre de			Al 30 de Junio de
	2010			2009			2009
Redbank S.A.		33,42	%		33,42	%		33,42	%
Transbank S.A.		32,71	%		32,71	%		32,71	%
Centro de Compensación Automatizado		33,33	%		33,33	%		33,33	%
Sociedad Interbancaria de Depósito de Valores S.A.		29,28	%		29,28	%		29,28	%
Cámara Compensación de Alto Valor S.A.		11,52	%		11,52	%		11,52	%
Administrador Financiero del Transantiago S.A.		20,00	%		20,00	%		20,00	%
Sociedad Nexus S.A.		12,90	%		12,90	%		12,90	%

RUBRO		Vida Útil (Meses)

Terrenos		-
Cuadros y obras de arte		-
Bienes retirados por enajenar		-
Alfombras y cortinajes		36
Computadores y equipos periféricos		36
Vehículos		36
Software y sistemas computacionales		36
Cajeros automáticos y tele consultas		60
Máquinas y equipos en general		60
Mobiliario de oficina		60
Sistemas telefónicos y comunicación		60
Sistemas de seguridad		60
Derechos sobre líneas telefónicas		60
Sistemas de climatización		84
Instalaciones en general		120
Sistemas de seguridad (adquisiciones hasta Octubre 2002)		120
Construcciones		1.200

Clasificación	Rango de pérdida estimada	Provisión

C1	Hasta 3%		2	%

C2	Más de 3% hasta 19%		10	%

C3	Más de 19% hasta 29%		25	%

C4	Más de 29% hasta 49%		40	%

D1	Más de 49% hasta 79%		65	%

D2	Más de 79%		90	%

Tipo de colocación		Plazo

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

Pronunciamientos IASB		Aplicación
Revisión NIC 24, Desglose de partes relacionadas		Períodos anuales iniciados el 01 de Enero de 2011
CINIIF 19, Cancelación de pasivos financieros con instrumentos de patrimonio		Períodos anuales iniciados el 01 de Julio de 2010
NIIF 9, Clasificación y medición		Períodos anuales iniciados el 01 de Julio de 2013

	Por el trimestre terminado al 30 de Junio de 2010
	Crédito Cuentas por Cobrar Clientes			Ingreso neto por intereses y reajustes		Ingreso neto de comisiones			ROF (2)		Provisiones			Gastos de apoyo (3)			Contribución neta del segmento
	MM$			MM$		MM$			MM$		MM$			MM$			MM$

Segmentos
Individuos		303.345			130.891		46.355			615		(40.090	)		(73.746	)		64.025
Santander Banefe		17.865			25.373		7.724			3		(17.097	)		(16.512	)		(509	)
Banca Personas		285.480			105.518		38.631			612		(22.993	)		(57.234	)		64.534
PYMEs		66.285			49.213		8.629			1.820		(12.353	)		(17.316	)		29.993
Institucionales		17.901			5.115		669			573		(185	)		(2.624	)		3.548

Empresas		75.797			31.117		5.967			4.380		(3.572	)		(9.058	)		28.834
Empresas		69.390			14.305		2.866			1.934		(4.533	)		(4.271	)		10.301
Grandes Empresas		(10.508	)		12.605		2.381			2.179		185			(3.650	)		13.700
Inmobiliaria		16.915			4.207		720			267		776			(1.137	)		4.833
Banca Comercial		463.328			216.336		61.620			7.388		(56.200	)		(102.744	)		126.400

Global banking and markets		67.890			11.991		6.168			15.384		(472	)		(7.673	)		25.398
Corporativa		60.882			11.313		5.970			-		(472	)		(2.917	)		13.894
Tesorería		7.008			678		198			15.384		-			(4.756	)		11.504
Otros		1.454			14.455		(2.630	)		2.269		720			(7.570	)		7.244

Totales		532.672			242.782		65.158			25.041		(55.952	)		(117.987	)		(159.042	)
Otros ingresos operacionales																		19.951
Otros gastos operacionales																		(17.648	)
Resultado por inversiones en sociedades																		223
Impuesto a la renta																		(24.163	)
Utilidad (pérdida) consolidada del ejercicio																		137.405

	Por el trimestre terminado al 30 de Junio de 2009
	Ingreso neto por intereses y reajustes			Ingreso neto de comisiones			ROF (2)		Provisiones			Gastos de apoyo (3)			Contribución neta del segmento
	MM$			MM$			MM$		MM$			MM$			MM$

Segmentos
Individuos		135.497			41.362			410		(70.840	)		(68.965	)		37.464
Santander Banefe		29.799			7.360			6		(23.802	)		(17.432	)		(4.069	)
Banca Personas		105.698			34.002			404		(47.038	)		(51.533	)		41.533
PYMEs		52.174			9.591			2.575		(17.366	)		(15.202	)		31.772
Institucionales		4.730			502			51		(121	)		(1.718	)		3.444

Empresas		36.510			5.924			2.917		(5.608	)		(8.054	)		31.719
Empresas		16.849			2.725			1.004		(2.533	)		(3.587	)		14.458
Grandes Empresas		15.023			2.584			1.822		(3.719	)		(3.216	)		12.494
Inmobiliaria		4.638			645			91		644			(1.251	)		4.767
Banca Comercial		228.911			57.409			5.953		(93.935	)		(93.939	)		104.399

Global banking and markets		(4.784	)		5.837			7.191		(1.025	)		(6.841	)		378
Corporativa		13.754			5.969			-		(1.025	)		(3.300	)		15.398
Tesorería		(18.538	)		(132	)		7.191		-			(3.541	)		(15.020	)
Otros		2.484			(101	)		16.512		(1.077	)		(3.319	)		14.499

Totales		226.611			63.145			29.656		(96.037	)		(104.099	)		119.276
Otros ingresos operacionales																2.928
Otros gastos operacionales																7.821
Resultado por inversiones en sociedades																440
Impuesto a la renta																(21.816	)
Utilidad (pérdida) consolidada del ejercicio																108.649

	Por el período de 06 meses terminado al 30 de Junio de 2010
	Crédito Cuentas por Cobrar Clientes		Ingreso neto por intereses y reajustes			Ingreso neto de comisiones			ROF (2)		Provisiones			Gastos de apoyo (3)			Contribución neta del segmento
	MM$		MM$			MM$			MM$		MM$			MM$			MM$

Segmentos
Individuos		7.715.031		260.833			89.909			1.083		(82.964	)		(140.766	)		128.095
Santander Banefe		629.494		51.009			15.587			5		(31.813	)		(31.024	)		3.764
Banca Personas		7.085.537		209.824			74.322			1.078		(51.151	)		(109.742	)		124.331
PYMEs		2.210.170		97.017			17.541			3.184		(28.292	)		(33.053	)		56.397
Institucionales		330.980		9.795			1.256			1.212		(253	)		(4.923	)		7.087

Empresas		2.983.741		63.139			12.404			7.266		(14.259	)		(16.417	)		52.133
Empresas		1.213.826		28.456			5.641			3.074		(6.395	)		(7.870	)		22.906
Grandes Empresas		1.293.173		26.360			5.257			3.761		(9.278	)		(6.494	)		19.606
Inmobiliaria		476.742		8.323			1.506			431		1.414			(2.053	)		9.621
Banca Comercial		13.239.922		430.784			121.110			12.745		(125.768	)		(195.159	)		243.712

Global banking and markets		1.347.855		21.949			11.556			35.800		(643	)		(15.715	)		52.947
Corporativa		1.340.847		23.120			12.042			-		(643	)		(5.743	)		28.776
Tesorería		7.008		(1.171	)		(486	)		35.800		-			(9.972	)		24.171
Otros		36.233		19.447			(5.157	)		6.069		272			(11.112	)		9.519

Totales		14.624.010		472.180			127.509			54.614		(126.139	)		(221.986	)		306.178
Otros ingresos operacionales																		26.016
Otros gastos operacionales																		(30.204	)
Resultado por inversiones en sociedades																		343
Impuesto a la renta																		(45.923	)
Utilidad (pérdida) consolidada del ejercicio																		256.410

	Al 30 Junio de		Al 31 de Diciembre de
	2010		2009
	MM$		MM$

Efectivo y depósitos en bancos
Efectivo		358.801		418.987
Depósitos en el Banco Central de Chile		390.579		988.978
Depósitos bancos nacionales		241		255
Depósitos en el exterior		649.260		635.238
Subtotales efectivo y depósitos en bancos		1.398.881		2.043.458

Operaciones con liquidación en curso netas		183.707		192.660

Totales efectivo y equivalente de efectivo		1.582.588		2.236.118

	Al 30 de Junio de 2010
	Monto nocional						Valor razonable
	Hasta 3 meses		Más de 3 meses a un año		Más de un año		Activos		Pasivos
	MM$		MM$		MM$		MM$		MM$

Derivados de cobertura de valor razonable
Forwards de monedas		-		92.467		440.806		6.808		1.173
Swaps de tasas de interés		-		229.356		295.358		46.340		195
Swaps de monedas y tasas		-		-		-		-		-
Opciones call de monedas		-		-		-		-		-
Opciones call de tasas		-		-		-		-		-
Opciones put de monedas		-		-		-		-		-
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		-		-		-		-		-
Subtotales		-		321.823		736.164		53.148-		1.368

Derivados de cobertura de flujo de efectivo
Forwards de monedas		-		-		-		-		-
Swaps de tasas de interés		-		-		-		-		-
Swaps de monedas y tasas		212.413		925.295		344.012		59.507		8.168
Opciones call de monedas		-		-		-		-		-
Opciones call de tasas		-		-		-		-		-
Opciones put de monedas		-		-		-		-		-
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		-		-		-		-		-
Subtotales		212.413		925.295		344.012		59.507		8.168

Derivados de negociación
Forwards de monedas		8.917.988		8.096.436		779.916		241.776		199.575
Swaps de tasas de interés		2.638.947		5.421.996		10.755.992		281.491		365.257
Swaps de monedas y tasas		659.884		2.566.311		9.825.464		892.746		672.819
Opciones call de monedas		40.542		50.150		-		1.949		678
Opciones call de tasas		155		47.203		76.630		216		1.458
Opciones put de monedas		33.198		16.655		-		56		544
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		133.574		-		-		335		680
Subtotales		12.424.288		16.199.111		21.438.002		1.418.569		1.241.011

Totales		12.363.701		17.446.229		22.518.178		1.531.224		1.250.547

	Al 31 de Diciembre de 2009
	Monto nocional						Valor razonable
	Hasta 3 meses		Más de 3 meses a un año		Más de un año		Activos		Pasivos
	MM$		MM$		MM$		MM$		MM$

Derivados de cobertura de valor razonable
Forwards de monedas		-		-		-		-		-
Swaps de tasas de interés		-		86.963		580.132		2.446		3.794
Swaps de monedas y tasas		-		26.079		583.035		16.972		805
Opciones call de monedas		-		-		-		-		-
Opciones call de tasas		-		-		-		-		-
Opciones put de monedas		-		-		-		-		-
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		-		-		-		-		-
Subtotales		-		113.042		1.163.167		19.418		4.599

Derivados de cobertura de flujo de efectivo
Forwards de monedas		-		-		-		-		-
Swaps de tasas de interés		-		-		-		-		-
Swaps de monedas y tasas		51.993		582.830		73.551		4.741		52.301
Opciones call de monedas		-		-		-		-		-
Opciones call de tasas		-		-		-		-		-
Opciones put de monedas		-		-		-		-		-
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		-		-		-		-		-
Subtotales		51.993		582.830		73.551		4.741		52.301

Derivados de negociación
Forwards de monedas		6.533.147		4.195.874		587.541		199.665		184.112
Swaps de tasas de interés		2.418.161		4.240.574		9.618.573		243.965		330.975
Swaps de monedas y tasas		887.942		1.594.972		9.880.693		922.498		772.959
Opciones call de monedas		34.341		22.107		-		203		43
Opciones call de tasas		122		5.189		39.900		281		595
Opciones put de monedas		33.198		15.487		-		3.083		3.232
Opciones put de tasas		-		-		-		-		-
Futuros de tasas de interés		-		-		-		-		-
Otros derivados		29.320		-		-		24		90
Subtotales		9.936.231		10.074.203		20.126.707		1.369.719		1.292.006

Totales		9.988.224		10.770.075		21.363.425		1.393.878		1.348.906

	Al 30 de Junio de 2010
	Dentro de 1 año		Entre 1 y 3 años		Entre 3 y 6 años		Sobre 6 años
	MM$		MM$		MM$		MM$

Elemento cubierto
Bonos Banco Central de Chile Pesos (BTU)		-		-		-		-
Bonos corporativos		-		11.740		-		-
Bonos corrientes o senior		-		436.840		-		-
Bonos subordinados		-		-		163.815		-
Créditos Corfo		-		-		25.000		17.191
Créditos interbancarios		174.751		-		-		-
Depósito a plazo		147.072		4.640		-		-
Letras hipotecarias		-		-		-		76.938

Totales		321.823		453.220		188.815		94.129

Instrumento de cobertura
Interest rate swap		77.467		393.975		-		-
Call money swap		15.000		4.640		25.000		17.191
Cross currency swap		229.356		54.605		163.815		76.938

Totales		321.823		453.220		188.815		94.129

	Al 31 de Diciembre de 2009
	Dentro de 1			Entre 1 y 3			Entre 3 y 6		Sobre 6
	año			años			años		años
	MM$			MM$			MM$		MM$

Elemento cubierto
Ingresos de flujo		-			-			-		-
Egresos de flujo		(7.570	)		(1.487	)		-		-
Flujos netos		(7.570	)		(1.487	)		-		-

Instrumento de cobertura
Ingresos de flujo		7.570			1.487			-		-
Egresos de flujo		(2.570	)		(938	)		-		-
Flujos netos		5.000			549			-		-

	Al 30 de Junio de 2010						Al 31 de Diciembre de 2009
	Bancos del país MM$		Bancos del exterior MM$		Total MM$		Bancos del país MM$		Bancos del exterior MM$		Total MM$

Saldos al 01 de Enero		-		42		42		-		35		35
Castigos		-		-		-		-		-		-
Provisiones constituidas		7		58		65		-		7		7
Provisiones liberadas		-		-		-		-		-		-

Totales		7		100		107		-		42		42

	Activos antes de provisiones						Provisiones constituidas
Al 30 de Junio de 2010	Cartera normal		Cartera deteriorada		Total		Provisiones individuales		Provisiones grupales		Total		Activo neto
	MM$		MM$		MM$		MM$		MM$		MM$		MM$

Colocaciones comerciales
Préstamos comerciales		5.005.335		663.054		5.668.389		56.830		80.017		136.847		5.531.542
Créditos de comercio exterior		704.595		93.958		798.553		21.154		1.198		22.352		776.201
Préstamos hipotecarios para fines generales		53.138		24.876		78.014		629		3.334		3.963		74.051
Operaciones de factoraje		218.587		7.746		226.333		1.746		669		2.415		223.918
Operaciones de leasing		948.556		81.646		1.030.202		9.545		1.695		11.240		1.018.962
Otros créditos y cuentas por cobrar		887		15.448		16.335		3.844		2.682		6.526		9.809

Subtotales		6.931.098		886.728		7.817.826		93.748		89.595		183.343		7.634.483

Colocaciones para vivienda
Préstamos con letras de crédito		150.655		5.020		155.675		-		514		514		155.161
Préstamos con mutuos hipotecarios endosables		129.899		64.901		194.800		-		10.891		10.891		183.909
Otros créditos con mutuos para vivienda		3.927.117		82.915		4.010.032		-		6.444		6.444		4.003.588
Operaciones de leasing		-		-		-		-		-		-		-

Subtotales		4.207.671		152.836		4.360.507		-		17.849		17.849		4.342.658

Colocaciones de consumo
Créditos de consumo en cuotas		1.051.657		427.851		1.479.508		-		150.452		150.452		1.329.056
Deudores por tarjetas de crédito		627.057		16.242		643.299		-		24.818		24.818		618.481
Contrato leasing consumo		3.188		457		3.645		-		-		-		3.645
Otros préstamos consumo		261.576		16.105		277.681		-		11.162		11.162		266.519

Subtotales		1.943.478		460.655		2.404.133		-		186.432		186.432		2.217.701

Totales		13.082.247		1.500.219		14.582.466		93.748		293.876		387.624		14.194.842

	Créditos en el país				Créditos en el exterior				Total créditos				Tasa
	Al 30 de Junio de		Al 31 de Diciembre de		Al 30 de Junio de		Al 31 de Diciembre de		Al 30 de Junio de		Al 31 de Diciembre de		Al 30 de Junio de		Al 31 de Diciembre de
	2010		2009		2010		2009		2010		2009		2010		2009
	MM$		MM$		MM$		MM$		MM$		MM$		%		%

Colocaciones comerciales
Manufacturas		768.342		640.395		-		-		768.342		640.395		5,25		4,66
Minería		65.352		67.057		-		-		65.352		67.057		0,45		0,49
Electricidad, gas y agua		179.312		144.386		-		-		179.312		144.386		1,23		1,05
Agricultura y ganadería		676.574		610.909		-		-		676.574		610.909		4,63		4,44
Forestal		79.788		71.085		-		-		79.788		71.085		0,55		0,52
Pesca		140.869		127.025		-		-		140.869		127.025		0,96		0,92
Transporte		396.387		362.508		-		-		396.387		362.508		2,71		2,64
Comunicaciones		110.888		164.077		-		-		110.888		164.077		0,75		1,19
Construcción		872.661		817.293		-		-		872.661		817.293		5,97		5,94
Comercio (*)		1.811.311		1.650.903		34.536		23.409		1.845.847		1.674.312		12,62		12,18
Servicios		293.776		288.256		-		-		293.776		288.256		2,01		2,10
Otros		2.429.574		2.380.871		-		-		2.429.574		2.380.871		16,61		17,31

Subtotales		7.824.834		7.324.765		34.536		23.409		7.859.370		7.348.174		53,74		53,44

Colocaciones para la vivienda		4.360.507		4.159.053		-		-		4.360.507		4.159.053		29,82		30,24

Colocaciones de consumo		2.404.134		2.244.049		-		-		2.404.134		2.244.049		16,44		16,32

Totales		14.589.475		13.727.867		34.536		23.409		14.624.011		13.751.276		100,00		100,00

							Al 30 de Junio de 2010
	Años de vida útil		Años amortización remanente		Saldo inicial 01 de Enero de 2010		Saldo bruto		Amortización acumulada			Saldo neto
					MM$		MM$		MM$			MM$

Licencias		3		2,1		1.544		5.310		(3.539	)		1.771
Desarrollo software (adquiridos)		3		2,0		75.716		131.084		(61.781	)		69.303

Totales						77.260		136.394		(65.320	)		71.074

	Licencias		Desarrollo software (adquiridos)		Total
	MM$		MM$		MM$

Saldos brutos 2010
Saldos al 01 de Enero de 2010		4.422		123.939		128.361
Adquisiciones		888		7.145		8.033
Otros		-		-		-

Saldos al 30 de Junio de 2010		5.310		131.084		136.394

Saldos brutos 2009
Saldos al 01 de Enero de 2009		3.194		91.207		94.401
Adquisiciones		1.228		32.732		33.960
Otros		-		-		-

Saldos al 31 de Diciembre de 2009		4.422		123.939		128.361

			Al 31 de Junio 2010
	Saldo inicial 01 de Enero de 2010		Saldo bruto		Depreciación acumulada			Saldo neto
	MM$		MM$		MM$			MM$

Terrenos y construcciones		161.922		168.156		(24.283	)		143.873
Equipos		13.391		29.304		(17.950	)		11.354
Cedidos en arrendamiento		689		1.602		(85	)		1.517
Otros		8.120		17.815		(11.375	)		6.440

Totales		184.122		216.877		(53.693	)		163.184

			Al 31 de Diciembre 2009
	Saldo inicial 01 de Enero de 2009		Saldo bruto		Depreciación acumulada			Saldo neto
	MM$		MM$		MM$			MM$

Terrenos y construcciones		170.197		180.868		(18.946	)		161.922
Equipos		15.597		27.993		(14.602	)		13.391
Cedidos en arrendamiento		4.092		727		(38	)		689
Otros		10.503		17.513		(9.393	)		8.120

Totales		200.389		227.101		(42.979	)		184.122

	Terrenos y construcciones			Equipos			Cedidos en arrendamiento operativo		Otros			Total
	MM$			MM$			MM$		MM$			MM$

Saldos al 01 de Enero de 2010		180.868			27.993			727		17.513			227.101
Adiciones		2.037			1.715			-		370			4.122
Retiros / bajas (ii)		(13.911	)		(218	)		-		(68	)		(14.197	)
Deterioro por siniestros (i)		(3.516	)		(186	)		-		-			(3.702	)
Traspasos		-			-			875		-			875
Otros		2.678			-			-		-			2.678

Saldos al 30 de Junio de 2010		168.156			29.304			1.602		17.815			216.877

	Por el trimestre terminado al 30 de Junio de						Por el período de 06 meses terminado al 30 de Junio de
	2010			2009			2010			2009
	MM$			MM$			MM$			MM$

Gastos por impuesto a la renta
Impuesto año corriente		29.042			10.316			56.387			52.163

Abonos (cargos) por impuestos diferidos
Originación y reverso de diferencias temporarias		(4.994	)		(11.364	)		(10.594	)		(14.242	)
Beneficio fiscal ejercicios anteriores		-			-			-			-
Subtotales		24.048			21.680			45.793			37.921
Impuesto por gastos rechazados artículo N°21		115			136			130			154

Otros		-			-			-			-

Cargos netos a resultados por impuesto a la renta		24.163			21.816			45.923			38.075

	Al 30 de Junio de 2010
	Largo plazo		Corto plazo		Total
	MM$		MM$		MM$

Letras de crédito hipotecarias		185.426		41.220		226.646
Bonos corrientes		2.268.901		107.703		2.376.604
Bonos subordinados		635.843		10.048		645.891
Instrumentos de deuda emitidos		3.090.170		158.971		3.249.141

Otras obligaciones financieras		120.335		37.755		158.090

Totales		3.210.505		196.726		3.407.231

Bonos Subordinados
Series	Monto	Plazo	Tasa de emisión	Fecha de emisión	Fecha de vencimiento

G2 (*)	UF 300.000	30 años	4,8% anual simple	01-09-2008	01-03-2038
Total	UF 300.000