Edgar Filing: BANCO SANTANDER CHILE

Unassociated Document

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

For the month of June, 2007

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.		Quarterly Earnings Report published Oct. 31, 2007 (English)

2.		Earnings published in local newspaper on Oct. 31, 2007 (Spanish, in real terms)

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/ Gonzalo Romero A.
		Name: Gonzalo Romero A.
		Title: General Counsel
Date: Nov. 8, 2007

Banco Santander Chile Announces

Nine Month and Third Quarter 2007 Earnings

·	In 3Q 2007 net income increased 5.9% QoQ and 6.6% YoY, totaling Ch$85,196 million (Ch$0.45 per share and US$0.92/ADR). ROAE reached 26.1% in 3Q 2007.

·	Record core revenues up 19.2% QoQ and 30.9% YoY in 3Q 2007. Net operating income up 18.8% QoQ and 24.5% YoY in 3Q 2007. These results were partially offset by lower non-operating results.

·	Net interest income increases 22.7% QoQ and 34.2% YoY. Net interest margin reaches a record level of 6.2%, up 100 basis points QoQ, as the better asset and liability mix and higher inflation enhances margins.

·	Total loans increased 2.1% QoQ and 12.1% YoY. Retail lending expanded 4.2% QoQ and 15.9% YoY, reflecting the Bank’s focus on profitability.

·	Fee income rises 5.6% QoQ and 17.8% YoY driven by a rise in the client base, product usage and higher asset management fees.

·	Solid growth of client base and distribution network. The total number of clients increased 15.2% YoY to 2.7 million. Market share in checking accounts reached 27.8% increasing 110 basis points in the past twelve months.

·	Efficiency ratio reached a record low level of 34.7% in 3Q 2007.

·	Coverage of past due loans reached 197%. Provision expenses stabilizing, increasing 1.8% QoQ and 26.8% YoY.

Net income increased 5.9% in 9M 2007 compared to 9M 2006 and totaled Ch$237,872 million (Ch$1.26/share and US$2.56/ADR). Growth was led by a 21.0% increase in core revenues. The Bank’s ROAE in this period reached 25.1% in 9M 2007, the highest among the top banks in Chile. The efficiency ratio improved to 36.1% in 9M 2007 compared to 36.6% in the same period of 2006, the best among Chile’s top banks.

Investor Relations Department

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

email: rmorenoh@santander.cl

Santiago, Chile, October 31, 2007. Banco Santander Chile (NYSE: SAN) announced today its unaudited results for the nine month period ended September 30, 2007 and the third quarter of 2007. These results are reported on a consolidated basis in accordance with Chilean GAAP^1,2in nominal Chilean pesos.

In the third quarter of 2007, net income totaled Ch$85,196 million (Ch$0.45 per share and US$0.92/ADR), increasing 5.9% compared to 2Q 2007 (from now on QoQ) and 6.6% compared to 3Q 2006 (from now on YoY). Core revenues (net interest income and fees) increased 19.2% QoQ and 30.9% YoY, as the Bank continued to show strong results in its retail banking business and a continued focus on maximizing profitability. Net operating income increased 18.8% QoQ and 24.5% YoY.

Strong growth of core revenues and net operating income

(Core revenues* and net operating income**, Ch$ million)

* Core revenues: Net interest income + fees

** Net operating income: Core revenues + net results from financial transactions + other operating income, net + operating expenses

In the quarter, the Bank continued to focus on increasing margins and profitability by incrementing profitability targets in various business segments and re-pricing the loan book. As a consequence, Net interest income adjusted for inflation hedge increased 22.7% QoQ and 34.2% YoY driven by solid margin expansion, the higher growth of retail lending activities and the positive evolution of non-interest bearing liabilities.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by Banco Santander Chile involve material risks and uncertainties and are subject to change based on various important factors which may be beyond the Bank's control. Accordingly, the Bank's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Bank's filings with the Securities and Exchange Commission. The Bank does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized.

²	The exchange rate used for translating Ch$ to US$ was Ch$511.72 per US$ dollar. All figures presented are in nominal terms. Historical figures are not adjusted by inflation.

Investor Relations Department

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

email: rmorenoh@santander.cl

In 3Q 2007 the net interest margin reached a record level of 6.2%, increasing 100 basis points QoQ and 150 basis points YoY. Total loans increased 2.1% QoQ and 12.1% YoY. Retail lending expanded 4.2% QoQ and 15.9% YoY.

During the quarter inflation jumped well-above market expectations fuelling a rise in short-term interest rates, while long-term rates descended. The overnight reference rate set by the Central Bank was increased 75 basis points to 5.75% during the quarter. In light of this scenario, the Bank proactively improved its funding mix. Despite the increase in short-term rates, time deposits declined and non-interest bearing liabilities remained flat in the quarter. The ratio of average non-interest bearing liabilities to interest earning asset reached 24.5% in 3Q 2007 compared to 21.0% in 3Q 2006. This rise in non-interest bearing liabilities counterbalances the negative impact of rising rates on funding costs. Time deposits decreased 1.0% QoQ, despite rising short-term rates. The Bank issued Ch$233,399 million (US$456 million) in long-term local senior bonds in the quarter to replace time deposits. These bonds were used to increase the duration of liabilities in light of rising short-term rates and falling long-term real rates.

Net fee income increased 5.6% QoQ and 17.8% YoY in 3Q 2007. The Bank continues to expand its client base, cross-selling and product usage, especially in retail banking along with positive results from asset management. The total number of clients increased 15.2% YoY to 2.7 million. This rise in client base has been driven by the growth in our retail checking account base. The total number of retail clients with a checking account has increased 15.4% YoY in 3Q 2007. Market share in checking accounts reached 27.8% as of August 2007, the latest figure available, compared to 26.7% as of August 2006. In this 12 month period, Santander opened 49.6% of all new accounts opened in the Chilean market.

In 3Q 2007, the Bank’s net provision expenses increased 1.8% QoQ and 26.8% YoY. This rise was mainly due to an increase in net provisions in retail banking in line with loan growth in this business segment. As a consequence of the strengthening of the Bank credit policies and processes, the Bank continues to display sound asset quality indicators. Coverage of past due loans reached 197% at September 2007. The past due loan ratio as of September 30, 2007 reached 0.88%. The expected loan loss ratio (reserves for loan losses over total loans) remained steady at 1.73% compared to 1.68% in 2Q 2007.

The Bank set a new record in terms of efficiency. The efficiency ratio reached 34.7% in 3Q 2007. Operating expenses increased 6.9% QoQ and 18.4% YoY in 3Q 2007. This rise was mainly due to higher expenses related to expansion of the distribution network and client base.

Positive operating trends in the quarter were partially offset by a 75.3% QoQ and 171.7% YoY increase in the loss from price level restatement in 3Q 2007 and a 78.7% QoQ and 84.8% YoY decrease in non-operating income in the same period.

Net income increased 5.9% in the nine month period ended September 30, 2007 (hereinafter 9M 2007) compared to the nine-month period ended September 30, 2006 (hereinafter 9M 2006) and totaled Ch$237,872 million (Ch$1.26/share and US$2.56/ADR). Growth was led by a 21.0% increase in core revenues. The Bank’s ROAE in this period reached 25.1% in 9M 2007, the highest among the top banks in Chile. The efficiency ratio improved to 36.1% in 9M 2007 compared to 36.6% in the same period of 2006. Santander has the best efficiency ratio among the top banks in Chile.

Investor Relations Department

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

email: rmorenoh@santander.cl

Banco Santander Chile	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Net interest income		242,755			192,163			176,217			37.8	%		26.3	%
Inflation hedge		(19,620	)		(10,380	)		(9,968	)		96.8	%		89.0	%
Adjusted net interest income		223,135			181,783			166,249			34.2	%		22.7	%
Fees and income from services		49,762			47,107			42,247			17.8	%		5.6	%
Core revenues		272,897			228,890			208,496			30.9	%		19.2	%
Total provisions, net of recoveries		(46,010	)		(45,214	)		(36,277	)		26.8	%		1.8	%
Operating expenses		(89,612	)		(83,818	)		(75,680	)		18.4	%		6.9	%
Net operating income		122,983			103,479			98,763			24.5	%		18.8	%
Non-operating income, net		982			4,603			6,460			(84.8	%)		(78.7	%)
Net income		85,196			80,487			79,934			6.6	%		5.9	%
Net income/share (Ch$)		0.45			0.43			0.42			6.6	%		5.9	%
Net income/ADR (US$)¹		0.92			0.84			0.82			12.1	%		9.1	%
Total loans		12,800,321			12,541,155			11,417,738			12.1	%		2.1	%
Customer funds		12,796,548			12,569,958			10,995,427			16.4	%		1.8	%
Shareholders’ equity		1,348,162			1,228,053			1,187,137			13.6	%		9.8	%
Net interest margin		6.8	%		5.5	%		5.0	%
Adjusted net interest margin²		6.2	%		5.2	%		4.7	%
Efficiency ratio		34.7	%		36.0	%		35.9	%
Return on average equity³		26.1	%		25.8	%		27.5	%
PDL / Total loans		0.88	%		0.84	%		0.78	%
Coverage ratio of PDLs		197.2	%		199.8	%		181.0	%
Expected loss⁴		1.73	%		1.68	%		1.41	%
BIS ratio		12.5	%		13.0	%		12.8	%
Branches⁵		425			417			368
ATMs		1,808			1,744			1,479
Employees		9,057			8,913			8,029

1.	The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate.

2.	Net interest margin adjusted for the results of inflation hedging

3.	Annualized Quarterly Earnings / Average Equity.

4.	Reserve for loan losses / Total loans on a consolidated basis.

5.	Includes SuperCaja branches inaugurated in 4Q 2006.

Investor Relations Department

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

email: rmorenoh@santander.cl

INTEREST EARNING ASSETS

Strong focus on profitability

Interest Earning Assets	Quarter ended,						% Change
(Ch$ million)	Sept. 30, 2007		June 30, 2007		Sept. 30, 2006		Sept. 2007/2006			Sept. / June 2007
Consumer loans		1,944,579		1,889,268		1,692,432		14.9	%		2.9	%
Residential mortgage loans*		3,154,667		3,024,742		2,662,434		18.5	%		4.3	%
Commercial loans		4,333,120		4,221,007		4,082,361		6.1	%		2.7	%
Commercial mortgage loans**		146,566		155,827		202,261		(27.5	%)		(5.9	%)
Foreign trade loans		853,479		663,313		656,171		30.1	%		28.7	%
Leasing		836,268		810,598		754,572		10.8	%		3.2	%
Factoring		208,916		175,780		157,967		32.3	%		18.9	%
Other outstanding loans		32,389		29,425		22,605		43.3	%		10.1	%
Contingent loans		996,156		1,115,134		963,463		3.4	%		(10.7	%)
Interbank loans		182,051		350,393		134,609		35.2	%		(48.0	%)
Past due loans		112,130		105,668		88,863		26.2	%		6.1	%
Total loans		12,800,321		12,541,155		11,417,738		12.1	%		2.1	%
Total financial investments		1,653,462		1,374,164		1,289,269		28.2	%		20.3	%
Total interest-earning assets		14,453,783		13,915,319		12,707,007		13.7	%		3.9	%

*	Includes residential mortgage loans backed by mortgage bonds (letras hipotecarias para la vivienda) and residential mortgage loans not funded with mortgage bonds (mutuos hipotecarios para la vivienda).

**	Includes general purpose mortgage loans backed by mortgage bonds (letra de crédito fines generales) and other commercial mortgage loans (préstamos hipotecarios endosables para fines generales).

In 3Q 2007, the Bank remained steadily focused on expanding the loan portfolio in those areas that contribute to expanding ROEs. Total loans increased 2.1% QoQ and 12.1% YoY. Consumer loans expanded 2.9% QoQ and 14.9% YoY. Residential mortgage lending increased 4.3% QoQ and 18.5% YoY. Commercial loans increased 2.7% QoQ and 6.1% YoY led by an increase in lending to Small and Mid-sized companies (SMEs) in line with our focus on profitability. This was also reflected in the growth of leasing and factoring operations that are mainly driven by the SME and middle market segments.

Investor Relations Department

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

email: rmorenoh@santander.cl

In the past three years, Santander Chile has continuously outperformed the market in the growth of net interest income, reflecting our focus on profitability over market share per se.

Source: Superintendency of Banks of Chile, unconsolidated figures.

Loans by business segment*	Quarter ended,						% Change
(Ch$ million)	Sept. 30, 2007		June 30, 2007		Sept. 30, 2006		Sept. 2007/2006			Sept. / June 2007
Total loans to individuals		5,576,602		5,376,224		4,866,924		14.6	%		3.7	%
SMEs		2,013,521		1,905,480		1,681,803		19.7	%		5.7	%
Total retail lending		7,590,123		7,281,704		6,548,727		15.9	%		4.2	%
Institutional lending		198,446		191,410		196,322		1.1	%		3.7	%
Middle-Market & Real estate		2,355,899		2,302,678		2,324,796		1.3	%		2.3	%
Corporate		1,452,592		1,280,267		1,237,508		17.4	%		13.5	%

*Excludes contingent loans and interbank loans

Retail lending expanded 4.2% QoQ and 15.9% YoY. In the quarter, the Bank focused on strengthening margins in this segment, which had some impact on growth rates, especially in consumer loans, but improved net interest income (See Net Interest Income).

Loans to individuals increased 3.7% QoQ and 14.6% YoY driven mainly by residential mortgage loans. The Bank has been working strongly throughout the year on developing a retail banking model that gives sustainable and adequate profitability to shareholders in the short and long-term. Lending to individuals continues to be a strategic priority for the Bank. The modifications introduced in the pricing and risk models should permit the Bank to grow at a healthy rate and strong margins.

Loan growth to SMEs remained steady increasing 5.7% QoQ and 19.7% YoY. This retail segment experienced strong growth in high yielding leasing and factoring operations. Spreads in this segment have remained strong (6%-7%) and the positive evolution of consumption and investment has pushed demand for loans in this segment.

Lending to the middle market segment increased 2.3% QoQ and 1.3% YoY. Spreads of new loans in this segment have been under pressure and the Bank avoided renewing some loan operations at unattractive returns.

Investor Relations Department

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

email: rmorenoh@santander.cl

Loans in corporate banking increased 13.5% QoQ and 17.4% YoY. This rise was mainly due to the growth in foreign trade loans. Foreign trade loans are somewhat volatile on a quarter to quarter basis in this segment, as a few customers concentrate a large percentage of total exports.

CUSTOMER FUNDS

Funding mix improves. Increasing duration of liabilities as short-term rates rise.

Funding	Quarter ended,						Change %
(Ch$ million)	Sept. 30, 2007		June 30, 2007		Sept. 30, 2006		Sept. 2007/2006			Sept. / June 2007
Non-interest bearing deposits		2,656,047		2,649,259		2,274,546		16.8	%		0.3	%
Time deposits and savings accounts		7,273,063		7,343,069		6,816,812		6.7	%		(1.0	%)
Total customer deposits		9,929,110		9,992,328		9,091,358		9.2	%		(0.6	%)
Mutual funds		2,867,438		2,577,630		1,904,069		50.6	%		11.2	%
Total customer funds		12,796,548		12,569,958		10,995,427		16.4	%		1.8	%

Total customer funds increased 1.8% QoQ and 16.4% YoY. During the quarter inflation jumped well-above market expectations fuelling a rise in short-term interest rates. The overnight reference rate set by the Central Bank was increased 75 basis points to 5.75% during the quarter. Despite rising rates, time deposits decreased 1.0% QoQ. The Bank issued Ch$233,399 million (US$456 million) in local senior bonds in the quarter. Despite international liquidity concerns, the Chilean market remains highly liquid, permitting the Bank to issue aggressively in the local market at attractive spreads. These bonds were used to increase the duration of liabilities in light of rising short-term rates and falling long-term rates. This reflects the Bank’s proactive management of its balance sheet in order to maximize margins and profitability. Demand for these bonds was 1.5x greater than supply, reflecting the high demand for good quality fixed income instruments in the period. Santander has the best risk ratings for any private issuer in Latin America.

Long-term funding	Quarter ended,						Change %
(Ch$ million)	Sept. 30, 2007		June 30, 2007		Sept. 30, 2006		Sept. 2007/2006			Sept. / June 2007
Bond		980,497		747,098		559,165		75.4	%		31.2	%
Sub-bonds		440,598		477,041		490,974		(10.3	%)		(7.6	%)
Total		1,421,095		1,224,139		1,050,139		35.3	%		16.1	%

Non-interest bearing liabilities increased 0.3% QoQ and 16.8% YoY. The average balance of non-interest bearing checking accounts increased 0.8% QoQ and 22.1% YoY. The positive performance of checking account balances reflects our strong growth in checking account holders and cash-management has fuelled growth in this line item. This also helps to minimize the negative impact of rising rates on funding costs, as the yield on checking accounts rises with rate hikes.

Investor Relations Department

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

email: rmorenoh@santander.cl

Total quarterly average non-interest bearing demand deposits

Quarter ended,

Change %

(Ch$ million)

Sept. 30,

2007

June 30,

2007

Sept. 30,

2006

Sept.

2007/2006

Sept. / June 2007

Total

2,203,374

2,185,216

1,805,267

22.1

0.8

Assets under management in the Bank’s mutual fund subsidiary increased 11.2% QoQ and 50.6% YoY. Despite market turmoil in August, the Chilean equity market rapidly recovered, fuelling growth of mutual funds under management.

NET INTEREST INCOME

Record net interest margin driven by improved asset mix and higher inflation

Net Interest Income	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Net interest income		242,755			192,163			176,217			37.8	%		26.3	%
Inflation hedge ¹		(19,620	)		(10,380	)		(9,968	)		96.8	%		89.0	%
Adjusted net interest income¹		223,135			181,783			166,249			34.2	%		22.7	%
Average interest-earning assets		14,342,826			14,001,833			14,162,135			1.3	%		2.4	%
Average loans		12,213,946			12,043,872			10,984,330			11.2	%		1.4	%
Net interest margin ²		6.8	%		5.5	%		5.0	%
Adjusted Net interest margin ^1,2		6.2	%		5.2	%		4.7	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		24.5	%		24.5	%		21.0	%
Quarterly inflation rate ³		2.98	%		1.00	%		1.38	%
Avg. overnight interbank rate (nominal)		5.45	%		5.08	%		5.24	%
Avg. 10 year Central Bank yield (real)		3.08	%		2.90	%		3.13	%

The Bank hedges part of its UF gap (UF = Unidad de Fomento, an inflation indexed currency) with derivatives. The result of this hedge is included in the net gain from trading and mark-to-market. The UF gap results from the Bank’s assets denominated in UF funded through deposits denominated in nominal pesos and free funds. The adjusted net interest income and margin is net of the results of this hedge.

2.	Annualized

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

Net interest income in 3Q 2007 increased 26.3% QoQ and 37.8% YoY. Adjusting for the results of inflation hedging, net interest income increased 22.7% QoQ and 34.2% YoY. In 3Q 2007 the adjusted net interest margin reached a record level of 6.2%, increasing 100 basis points QoQ and 150 basis points YoY. Among the various reasons for this solid performance, the following points are worth mentioning:

Higher inflation. Inflation reached 3.0% in 3Q 2007, boosting net interest income and margins. The Bank has a more assets than liabilities denominated in Unidades de Fomento (UF, an inflation-indexed currency). The UF gap results from the Bank’s assets denominated in UF funded through deposits denominated in nominal pesos and free funds. This positive gap is, in part, hedged with peso/UF derivatives, the results of which are recognized in the net gains from financial transactions. The Bank hedges this gap in order to maintain interest rate risk below internal and regulatory limits. The positive effects of higher inflation are also partially offset by the loss from price level restatement. Going forward, if inflation decelerates, this should negatively affect net interest income compared to 3Q 2007 levels.

Investor Relations Department

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

email: rmorenoh@santander.cl

Rising net interest margins*

* Net interest margin adjusted for inflation hedging

Improved asset mix and the constant focus of adequately allocating capital to the most productive uses. In 3Q 2007 interest earning assets increased 1.3% YoY, while average loans increased 11.2% in the same period. The yield on average consumer loans increased 133 bp to 23.2% and the average volume of consumer loans increased 18.8%. The average volume of commercial and other loans increased 10.1% YoY and the yield earned on these loans increased 336 bp. As a result, loan yields were up 318 bp. YoY, reaching 14.7%. This reflects the strategic focus on improving the asset and pricing mix of the loan portfolio.

3Q 2007 vs. 3Q 2006	Avg. balance (Ch$mn)		YoY chg. (%)			Yield* (%)			Chg. yield (bp)
Loans		12,213,946		11.2	%		14.7	%		+318
Consumer loans		1,683,360		18.8	%		23.2	%		+133
Commercial & other loans		10,530,585		10.1	%		13.3	%		+336
Total avg. interest earning assets		14,342,826		1.3	%		14.0	%		+396

* Interest income annualized / average volume

Improved funding mix. During the quarter, the rise in inflation expectations pushed short-term rates upward. The average overnight interbank rate increased from 5.08% in 2Q 2007 to 5.45% in 3Q 2007. This placed pressure on the Bank’s margins by increasing funding costs. As mentioned above, the Bank issued long-term bonds in the local market to counterbalance rising funding costs. At the same time, the ratio of average non-interest bearing liabilities to interest earning asset reached 24.5% in 3Q 2007 compared to 21.0% in 3Q 2007. As short-term rates rise, the yield obtained over non-interest bearing deposits and capital increases.

Investor Relations Department

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

email: rmorenoh@santander.cl

PROVISION FOR LOAN LOSSES

Provision expense stable QoQ. Coverage ratio reaches 197%

Provision for loan losses	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Provisions		(11,143	)		(11,556	)		(14,178	)		(21.4	%)		(3.6	%)
Charge-offs		(49,465	)		(47,965	)		(34,168	)		44.8	%		3.1	%
Gross provisions and charge-offs		(60,608	)		(59,521	)		(48,346	)		25.4	%		1.8	%
Loan loss recoveries		14,598			14,307			12,069			21.0	%		2.0	%
Net provisions		(46,010	)		(45,214	)		(36,277	)		26.8	%		1.8	%
Total loans		12,800,321			12,541,155			11,417,738			12.1	%		2.1	%
Total reserves (RLL)		221,070			211,113			160,879			37.4	%		4.7	%
Past due loans (PDL)**		112,130			105,668			88,863			26.2	%		6.1	%
Gross provision expense / loans***		1.89	%		1.90	%		1.69	%
Net provision expense / loans ***		1.44	%		1.44	%		1.27	%
PDL/Total loans		0.88	%		0.84	%		0.78	%
Expected loss (RLL / loans)		1.73	%		1.68	%		1.41	%
RLL / Past due loans		197.2	%		199.8	%		181.0	%

* See text and footnote 3

** Past due loans: installments or credit lines more than 90 days overdue

*** Annualized

In 3Q 2007, the Bank’s net provisions expenses increased 1.8% QoQ and 26.8% YoY. This rise was mainly due to an increase in net provisions in retail banking in line with loan growth in this business segment. As mentioned in previous releases, provisions are expected to increase due to the growth of lending to higher yielding and riskier retail segments.

Net provision expense by segment	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Retail banking*		45,324			43,102			36,721			23.4	%		5.2	%
Middle-market		(303	)		1,792			(885	)		(65.8	%)		—	%
Corporate banking		(184	)		(32	)		(48	)		283.3	%		475.0	%
Leasing subsidiary		(13	)		(109	)		(355	)		(96.3	%)		(88.1	%)
Total**		44,824			44,753			35,433			26.5	%		0.2	%

* Includes individuals and SMEs.

** Excludes provisions over repossessed assets

The Bank continues to display sound asset quality indicators as a result of the proactive management of asset quality and the strengthening of credit policies and processes. Coverage of past due loans reached 197% at September 2007. The past due loan ratio as of September 30, 2007 reached 0.88%. Reserves for loan losses over total loans remained steady at 1.73% compared to 1.68% in 2Q 2007. The ratio of net provision expense over total loans remained steady QoQ at 1.4% in 3Q 2007.

Investor Relations Department

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

email: rmorenoh@santander.cl

FEE INCOME

Growth in distribution network, client base and product usage boosts fee income

Fee income	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Checking accounts*		16,011			13,822			13,638			17.4	%		15.8	%
Adm. & collection of insurance policies		6,492			7,644			5,141			26.3	%		(15.1	%)
Mutual fund services		8,162			7,145			4,974			64.1	%		14.2	%
Credit cards		5,727			5,046			4,910			16.6	%		13.5	%
Automatic teller cards		4,172			3,959			3,646			14.4	%		5.4	%
Insurance brokerage		2,891			3,027			3,353			(13.8	%)		(4.5	%)
Stock brokerage		1,888			1,920			349			441.0	%		(1.7	%)
Other product and services		4,419			4,544			6,236			(29.1	%)		(2.8	%)
Total fee income, net		49,762			47,107			42,247			17.8	%		5.6	%
Fees / operating expense		55.5	%		56.2	%		55.8	%

*Includes lines of credit

Net fee income increased 5.6% QoQ and 17.8% YoY in 3Q 2007. The Bank continues to expand its client base, cross-selling and product usage, especially in retail banking along with positive results from asset management. The total number of clients increased 15.2% YoY to 2.7 million. The Bank continues to invest in expanding its distribution network. As of September 2007, the Bank’s distribution network totaled 425 branches and 1,808 ATMs, increasing 15.5% and 22.2% YoY, respectively. 1/3 of the Bank’s branches have been opened in the last three years.

Investing to sustain growth momentum in retail banking

* Including Santander SuperCaja offices

A greater amount of clients with checking accounts coupled with continuous improvements in client service has led to better cross selling ratios. The amount of middle/upper income individual clients that are cross-sold (a client with a checking account and that uses at least three other products) increased 19.7% YoY as of September 2007. In Santander Banefe, the amount of cross-sold clients (clients that uses at least 2 or more other products) rose 20.2% YoY as of September 2007.

Investor Relations Department

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

email: rmorenoh@santander.cl

This rise in client base has been driven by the growth in our retail checking account base. Market share in checking accounts reached 27.8% as of August 2007, the latest figure available, compared to 26.7% as of August 2006. In this 12 month period, the Bank’s opened 49.6% of all new account opened in the Chilean market. As a result, in 3Q 2007 fees from checking accounts increased 17.4% YoY and 15.8% QoQ.

Credit card fees increased 16.6% QoQ and 13.5% YoY in 3Q 2007. According to information published by Transbank, the industry’s credit card processor, as of September 2007 purchases with Santander credit cards in monetary terms were growing 16.4% YoY in real terms compared to 15.6% for the market. Market share in terms of purchases reached 35.5% as of September 2007 compared to 35.3% as of September 2006.

Asset management has been an important contributor to fee income in 2007. Fees from mutual fund management increased 14.2% QoQ and 64.1% YoY in 3Q 2007. Assets under management totaled Ch$2,867,438 million and increased 11.2% QoQ and 50.6% YoY, fuelling asset management fee growth.

ATM fees increased 5.4% QoQ and 14.4% YoY in line with the expansion of the Bank’s ATM network. As of September 2007, the Bank had a total of 1,808 ATMs, the largest network in Chile, which represents a 22.2% YoY increase. An extensive ATM network is key to this process.

Insurance brokerage fees decreased 4.5% QoQ and 13.8% YoY in 3Q 2007. Fees from the administration and collection of insurance policies increased 15.1% QoQ and 26.3% YoY in the same period. Lower loan growth reduced the growth rate of insurance policies associated with different loan products. This was offset by the continued strength in distributing insurance products and collecting insurance premiums for third parties.

Investor Relations Department

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

email: rmorenoh@santander.cl

Fees from stock brokerage decreased 1.7% QoQ, but increased 441% YoY in 3Q 2007. In 1Q 2007, the merger between Santiago Corredores de Bolsa Ltda, a subsidiary of the Bank, and Santander Investment S.A. Corredores de Bolsa was completed. The Bank now owns 50.5% of the merged entity.

OPERATING EXPENSES AND EFFICIENCY

Efficiency ratio reaches 34.7% in 3Q 2007

Operating Expenses	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Personnel expenses		45,831			42,879			38,468			19.1	%		6.9	%
Administrative expenses		31,633			30,354			27,563			14.8	%		4.2	%
Depreciation and amortization		12,148			10,585			9,650			25.9	%		14.8	%
Operating expenses		89,612			83,818			75,680			18.4	%		6.9	%
Efficiency ratio*		34.7	%		36.0	%		35.9	%

* Operating expenses / operating income. Operating income = Net financial income + Net fee income + other operating income, net.

The Bank continues to have a world class efficiency ratio, which reached a record low of 34.7% in 3Q 2007.

In the same period, operating expenses increased 6.9% QoQ and 18.4% YoY. Personnel expenses increased 6.9% QoQ and 19.1% YoY in the same period. Headcount increased 12.8% YoY. This rise is mainly focused in front office positions as the Bank expands its distribution network. Santander SuperCaja and the merger of the stock brokerages also added approximately 200 new employees to headcount. Additionally in the quarter, the spurt in inflation triggered an automatic increase in wages.

The 4.2% QoQ and 14.8% YoY rise in administrative expenses was directly linked to the higher commercial activities and the larger distribution network. The same hold true for depreciation and amortizations.

For the nine-month period ended September 30, 2007, the efficiency ratio reached 36.1% compared to 36.6% in the same period in 2006.

Investor Relations Department

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

email: rmorenoh@santander.cl

Positive evolution of efficiency ratio*, (%)

*Operating expenses / operating income. Operating income = Net financial income + Net fee income + other operating income, net

GAINS (LOSSES) ON FINANCIAL TRANSACTIONS

Net Result from financial transactions	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Net gain (loss) from trading and mark-to-market		(64,091	)		(628	)		(5,056	)		1,167.6	%		10,105.6	%
Foreign exchange transactions, net		42,145			5,167			5,499			666.4	%		715.7	%
Net results from financial transactions³		(21,946	)		4,539			443			—	%		—	%
Inflation hedge *		(19,620	)		(10,380	)		(9,968	)		96.8	%		89.0	%
Adjusted Gains (losses) on financial transactions*		(2,326	)		14,919			10,411			—	%		—	%
Quarterly inflation rate**		2.98	%		1.00	%		1.38	%
Avg. overnight interbank rate (nominal)		5.45	%		5.08	%		5.24	%
Avg. 10 year Central Bank yield (real)		3.08	%		2.90	%		3.13	%

* The Bank hedges part of its UF gap (UF = Unidad de Fomento, an inflation indexed currency) with derivatives. The result of this hedge is included in the net gain from trading and mark-to-market. The UF gap results from the Bank’s assets denominated in UF funded through deposits denominated in nominal pesos and free funds. The adjusted net interest income and margin is net of the results of this hedge.

** Quarterly variation of the Unidad de Fomento (UF)

In 3Q 2007, the gain on financial transactions totaled a loss of Ch$21,946 million. Of this loss, Ch$19,620 million are directly related to the results from the Bank’s peso/UF hedging produced by the high inflation rate in 3Q 2007 (+2.98%). The Bank maintains long-term assets (mainly financial investments and mortgage loans) that are denominated in UFs (an inflation linked currency) that are funded with deposits that have a shorter duration. In order to keep interest rate risk in line with regulatory limits, the Bank partially hedges this UF gap with derivatives. The results produced by this hedge are recognized in this line item and move inversely with inflation. All-in the Bank benefits from a higher inflation scenario due to the positive gap between assets and liabilities denominated in UFs.

³For analysis purposes only, we have created the line item: Net results from financial transactions. This is the sum of the net gain (loss) from trading, the mark-to-market of financial investment and derivatives, and foreign exchange transactions. The results recorded in foreign exchange transactions mainly includes the translation gains or losses of assets and liabilities denominated in foreign currency, but does not include the mark-to-market of FX derivatives. As Santander Chile limits its foreign exchange gap, the results recorded in foreign exchange transactions are, for the most part, offset by the mark-to-market of foreign currency forwards. For this reason they are added to the net gains (loss) from trading and mark-to-market, which includes the mark-to-market of FX forwards.

Investor Relations Department

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

email: rmorenoh@santander.cl

Excluding this effect, the adjusted result from gains and losses from financial transactions totaled a loss of Ch$2,326 million. This was mainly due to a loss of Ch$2,800 million in our market-making and trading business.

OTHER OPERATING INCOME/EXPENSES, OTHER INCOME/EXPENSES, PRICE LEVEL RESTATEMENT AND INCOME TAX

Other Income and Expenses	Quarter									Change %
(Ch$ million)	3Q 2007			2Q 2007			3Q 2006			3Q 07/ 3Q 06			3Q / 2Q 2007
Sales force expense		(7,168	)		(4,934	)		(4,148	)		72.8	%		45.3	%
Other operating expenses, net		(4,798	)		(6,364	)		(4,040	)		18.8	%		(24.6	%)
Total other operating results, net		(11,966	)		(11,298	)		(8,188	)		46.1	%		5.9	%

Non-operating income, net		2,507			5,613			6,269			(60.0	%)		(55.3	%)
Income attributable to investments in other companies		(635	)		(728	)		219			—	%		(12.8	%)
Losses attributable to minority interest		(890	)		(282	)		(28	)		3078.6	%		215.6	%
Total non-operating results, net		982			4,603			6,460			(84.8	%)		(78.7	%)
Price level restatement		(23,902	)		(13,633	)		(8,796	)		171.7	%		75.3	%
Quarterly inflation rate**		2.98	%		1.00	%		1.38	%
Income tax		(14,867	)		(13,962	)		(16,493	)		(9.9	%)		6.5	%

Other operating results, net totaled a loss of Ch$11,966 million, increasing 5.9% QoQ and 46.1% YoY in 3Q 2007. Total sales force expenses reached Ch$7,168 million in 3Q 2007, increasing 45.3% QoQ and 72.8% YoY, reflecting the strong commercial efforts being made in retail banking and a one-time adjustment of approximately Ch$2,000 million charged to our sales force expense in the quarter. Other net operating expenses decreased 24.6% QoQ due to a Ch$624 million increase in gains from the sale of repossessed assets that totaled Ch$1,370 million in 3Q 2007. The 18.8% YoY increment in other net operating expenses was mainly due to higher customer service expenses and expenses relating to the promotion of our credit card business.

Non-operating income, net totaled a gain of Ch$982 million in 3Q 2007 compared to a gain of Ch$4,603 million in 2Q 2007 and a gain of Ch$6,460 million in 3Q 2006. This difference is mainly due to the lower gains from the reversal of non-credit related contingencies in 3Q 2007 compared to prior periods. These contingencies are mainly related to non-credit risks, including non-specific contingencies, tax contingencies, legal contingencies and other impairments.

Price level restatement in the quarter totaled a loss of Ch$23,902 million. The Bank must adjust its capital and fixed assets for the variations in price levels. When inflation is positive, the Bank records a loss from price restatement, since the Bank's capital is larger than fixed assets. The inflation rate of +2.98% in 3Q 2007 compared to +1.00% in 2Q 2007 and +1.38% in 3Q 2006, explains the higher loss in this line item compared to previous periods.

Investor Relations Department

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

email: rmorenoh@santander.cl

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROAE in 3Q 2007 reaches 26.1% with a solid BIS ratio of 12.5%

Shareholders’ equity	Quarter ended									Change %
(Ch$ million)	Sept. 30, 2007			June 30, 2007			Sept. 30, 2006			Sept. 2007/2006			Sept. / June 2007
Capital		1,114,163			1,079,822			965,615			15.4	%		3.2	%
Unrealized gain (loss) available for sale portfolio		(3,873	)		(4,445	)		(3,191	)		21.4	%		(12.9	%)
Total capital and reserves		1,110,290			1,075,377			962,424			15.4	%		3.2	%
Net Income		237,872			152,676			224,713			5.9	%		55.8	%
Total shareholders’ equity		1,348,162			1,228,053			1,187,137			13.6	%		9.8	%
Return on average equity (ROAE)		26.1	%		25.8	%		27.5	%

Shareholders’ equity totaled Ch$1,110,290 million (US$2,635 million) as of September 30, 2007. The Bank’s ROAE in 3Q 2007, reached 26.1% and 25.1% in 9M 2007. The Bank’s BIS ratio as of September 30, 2007 was 12.5% with a Tier I ratio of 9.0%. The decline in Tier II QoQ was mainly due to the translation loss produced by the 3% appreciation of the peso in the quarter, which reduced the balance of the Bank’s subordinated bonds denominated in US dollars.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	Sept. 30, 2007			June 30, 2007			Sept. 30, 2006			Sept. 2007/2006			Sept. / June 2007
Tier I		1,110,290			1,075,377			962,484			15.4	%		3.2	%
Tier II		440,432			467,469			458,406			(3.9	%)		(5.8	%)
Regulatory capital		1,550,722			1,542,846			1,420,890			9.1	%		0.5	%
Risk weighted assets		12,364,773			11,851,230			11,068,534			11.7	%		4.3	%
Tier I ratio		9.0	%		9.1	%		8.7	%
BIS ratio		12.5	%		13.0	%		12.8	%

Investor Relations Department

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

email: rmorenoh@santander.cl

INSTITUTIONAL BACKGROUND

As per latest public records published by the Superintendence of Banks for September 2007, Banco Santander Chile was the largest bank in Chile in terms of loans and deposits. The Bank has the highest credit ratings among all Latin American companies with an A rating from Standard and Poor’s, A+ by Fitch and an A2 rating from 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 76.71% of Banco Santander Chile.

Santander (SAN.MC, STD.N) is the largest bank in the euro zone by market capitalization and seventh in the world by profit. Founded in 1857, Santander has EUR 885,603 million in assets and EUR 1,071,815 million in managed funds, 69 million customers, 11,092 branches and a presence in 40 countries. It is the largest financial group in Spain and Latin America, and is the sixth largest bank in the United Kingdom, through its Abbey subsidiary, and is the third largest banking group in Portugal. Through Santander Consumer Finance, it also operates a leading consumer finance business in 12 European countries (Germany, Italy and Spain, among others) and the United States. In the first half 2007, Santander registered €4,458 million in net attributable profits, an increase of 39% from the previous year.

In Latin America, Santander manages over US$200 billion in business volumes (loans, deposits, mutual funds, pension funds and managed funds) through 4,481 offices. In the first half 2007, Santander reported $1,807 million in net attributable income in Latin America, 28% higher than the prior year.

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

New Email: rmorenoh@santander.cl

Website: www.santander.cl

Investor Relations Department

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

email: rmorenoh@santander.cl

BANCO SANTANDER - CHILE, AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions of nominal Chilean pesos)

	30-Sep			30-Sep			30-Jun			30-Sep			% Change			% Change
	2007			2007			2007			2006			Sept. 2007 / 2006			Sept. / June 2007
	US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions
ASSETS

Cash and due from banks
Noninterest bearing		1,265,217			647,437			740,303			716,085			(9.6	%)		(12.5	%)
Interbank deposits-interest bearing		440,565			225,446			291,332			307,289			(26.6	%)		(22.6	%)
Total cash and due from banks		1,705,782			872,883			1,031,635			1,023,373			(14.7	%)		(15.4	%)

Financial investments
Trading		1,576,600			806,778			669,060			671,975			20.1	%		20.6	%
Available for sale		1,577,996			807,492			673,992			602,872			33.9	%		19.8	%
Held to maturity		0			0			0			0			--	%		--	%
Investment collateral under agreements to repurchase		76,589			39,192			31,112			14,422			171.7	%		26.0	%
Total financial investments		3,231,185			1,653,462			1,374,164			1,289,269			28.2	%		20.3	%

Loans, net
Commercial loans		8,467,756			4,333,120			4,221,007			4,082,361			6.1	%		2.7	%
Consumer loans		3,800,084			1,944,579			1,889,268			1,692,432			14.9	%		2.9	%
Mortgage loans (Financed with mortgage bonds)		797,495			408,094			429,819			525,963			(22.4	%)		(5.1	%)
Foreign trade loans		1,667,863			853,479			663,313			656,171			30.1	%		28.7	%
Interbank loans		355,763			182,051			350,393			134,609			35.2	%		(48.0	%)
Leasing		1,634,230			836,268			810,598			754,572			10.8	%		3.2	%
Other outstanding loans		6,125,311			3,134,444			2,955,955			2,519,305			24.4	%		6.0	%
Past due loans		219,124			112,130			105,668			88,863			26.2	%		6.1	%
Contingent loans		1,946,682			996,156			1,115,134			963,463			3.4	%		(10.7	%)
Reserves		(432,014	)		(221,070	)		(211,113	)		(160,879	)		37.4	%		4.7	%
Total loans, net		24,582,294			12,579,251			12,330,042			11,256,859			11.7	%		2.0	%

Derivatives		1,143,201			584,999			419,417			305,641			91.4	%		39.5	%

Other assets
Bank premises and equipment		467,148			239,049			226,927			222,441			7.5	%		5.3	%
Foreclosed assets		26,708			13,667			11,222			14,373			(4.9	%)		21.8	%
Investments in other companies		96,029			49,140			5,707			6,941			607.9	%		761.0	%
Assets to be leased		11,426			5,847			40,271			23,619			(75.2	%)		(85.5	%)
Other		1,479,841			757,264			773,696			483,377			56.7	%		(2.1	%)
Total other assets		2,081,152			1,064,967			1,057,823			750,751			41.9	%		0.7	%

TOTAL ASSETS		32,743,614			16,755,562			16,213,081			14,625,894			14.6	%		3.3	%

BANCO SANTANDER - CHILE, AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions of nominal Chilean pesos)

	30-Sep		30-Sep		30-Jun		30-Sep		% Change			% Change
	2007		2007		2007		2006		Sept. 2007 / 2006			Sept. / June 2007
LIABILITIES AND SHAREHOLDERS' EQUITY	US$ thousands		Ch$ millions		Ch$ millions		Ch$ millions

Deposits

Current accounts		3,356,597		1,717,638		1,721,326		1,487,518		15.5	%		(0.2	%)
Bankers drafts and other deposits		1,833,833		938,409		927,933		787,028		19.2	%		1.1	%
Total non-interest bearing deposits		5,190,430		2,656,047		2,649,259		2,274,546		16.8	%		0.3	%

Savings accounts and time deposits		14,212,974		7,273,063		7,343,069		6,816,812		6.7	%		(1.0	%)
Total deposits		19,403,404		9,929,110		9,992,328		9,091,358		9.2	%		(0.6	%)

Other interest bearing liabilities
Banco Central de Chile borrowings
Credit lines for renegotiation of loans		8,112		4,151		4,307		5,487		(24.3	%)		(3.6	%)
Other Banco Central borrowings		525,866		269,096		102,145		184,147		46.1	%		163.4	%
Total Banco Central borrowings		533,978		273,247		106,452		189,634		44.1	%		156.7	%

Investments sold under agreements to repurchase		240,934		123,291		158,899		73,434		67.9	%		(22.4	%)

Mortgage finance bonds		924,887		473,283		484,368		560,334		(15.5	%)		(2.3	%)

Other borrowings
Bonds		1,916,081		980,497		747,098		559,165		75.4	%		31.2	%
Subordinated bonds		861,014		440,598		477,041		490,974		(10.3	%)		(7.6	%)
Borrowings from domestic financial institutions		9,423		4,822		0		3,777		--	%		--	%
Foreign borrowings		2,313,302		1,183,763		1,164,200		924,776		28.0	%		1.7	%
Other obligations		232,295		118,870		52,409		43,235		174.9	%		126.8	%
Total other borrowings		5,332,115		2,728,550		2,440,748		2,021,926		34.9	%		11.8	%
Total other interest bearing liabilities		7,031,914		3,598,371		3,190,467		2,845,328		26.5	%		12.8	%

Derivatives		1,111,117		568,581		365,167		307,621		84.8	%		55.7	%

Other liabilities
Contingent liabilities		1,948,837		997,259		1,116,959		964,924		3.4	%		(10.7	%)
Other		576,031		294,766		302,219		228,038		29.3	%		(2.5	%)
Minority interest		37,741		19,313		17,888		1,489		1196.7	%		8.0	%
Total other liabilities		2,562,609		1,311,338		1,437,066		1,194,451		9.8	%		(8.7	%)

Shareholders' equity
Capital and reserves		2,169,722		1,110,290		1,075,377		962,424		15.4	%		3.2	%
Income for the year		464,848		237,872		152,676		224,713		5.9	%		55.8	%
Total shareholders' equity		2,634,570		1,348,162		1,228,053		1,187,137		13.6	%		9.8	%
TOTAL LIABILITIES AND
SHAREHOLDER'S EQUITY		32,743,614		16,755,562		16,213,081		14,625,894		14.6	%		3.3	%

BANCO SANTANDER CHILE

QUARTERLY INCOME STATEMENTS

Million of nominal Chilean pesos

	IIIQ 2007			IIIQ 2007			IIQ 2007			IIIQ 2006			% Change			% Change
	US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions			IIIQ 2007/2006			IIIQ / IIQ 2007
Interest income and expense
Interest income		985,549			504,325			380,183			356,538			41.5	%		32.7	%
Interest expense		(511,158	)		(261,570	)		(188,020	)		(180,320	)		45.1	%		39.1	%
Net interest income		474,390			242,755			192,163			176,217			37.8	%		26.3	%
Provision for loan losses		(89,912	)		(46,010	)		(45,214	)		(36,277	)		26.8	%		1.8	%
Fees and income from services
Fees and other services income		118,924			60,856			57,641			50,458			20.6	%		5.6	%
Other services expense		(21,680	)		(11,094	)		(10,534	)		(8,211	)		35.1	%		5.3	%
Total fee income		97,245			49,762			47,107			42,247			17.8	%		5.6	%
Net results from financial transactions
Net gain (loss) from trading and mark-to-market		(125,246	)		(64,091	)		(628	)		(5,056	)		1167.6	%		10105.6	%
Foreign exchange transactions,net		82,359			42,145			5,167			5,499			666.4	%		715.7	%
Net results from financial transactions		(42,887	)		(21,946	)		4,539			443			--	%		--	%
Other operating income, net
Other operating income, net		(23,384	)		(11,966	)		(11,298	)		(8,188	)		46.1	%		5.9	%
Operating expenses
Personnel salaries and expenses		(89,563	)		(45,831	)		(42,879	)		(38,468	)		19.1	%		6.9	%
Administrative and other expenses		(61,817	)		(31,633	)		(30,354	)		(27,563	)		14.8	%		4.2	%
Depreciation and amortization		(23,740	)		(12,148	)		(10,585	)		(9,650	)		25.9	%		14.8	%
Total operating expenses		(175,119	)		(89,612	)		(83,818	)		(75,680	)		18.4	%		6.9	%
Other income and expenses
Nonoperating income, net		4,899			2,507			5,613			6,269			(60.0	%)		(55.3	%)
Income attributable to investments in other companies		(1,241	)		(635	)		(728	)		219			--	%		(12.8	%)
Losses attributable to minority interest		(1,739	)		(890	)		(282	)		(28	)		3078.6	%		215.6	%
Total other income and expenses, net		1,919			982			4,603			6,460			(84.8	%)		(78.7	%)
Gain (loss) from price-level restatement		(46,709	)		(23,902	)		(13,633	)		(8,796	)		171.7	%		75.3	%
Income before income taxes		195,542			100,063			94,449			96,427			3.8	%		5.9	%
Income taxes		(29,053	)		(14,867	)		(13,962	)		(16,493	)		(9.9	%)		6.5	%
Net income		166,489			85,196			80,487			79,934			6.6	%		5.9	%

BANCO SANTANDER CHILE

NINE MONTH INCOME STATEMENT

Million of nominal Chilean pesos

	9M 2007			9M 2007			9M 2006			% Change
	US$ thousands			Ch$ millions			Ch$ millions			2007/2006
Interest income and expense
Interest income		2,291,927			1,172,825			915,323			28.1	%
Interest expense		(1,137,369	)		(582,015	)		(439,967	)		32.3	%
Net interest income		1,154,557			590,810			475,356			24.3	%
Provision for loan losses		(249,266	)		(127,555	)		(83,508	)		52.7	%
Fees and income from services
Fees and other services income		339,770			173,867			146,416			18.7	%
Other services expense		(62,316	)		(31,889	)		(26,072	)		22.3	%
Total fee income		277,454			141,979			120,344			18.0	%
Net results from financial transactions
Net gain (loss) from trading and mark-to-market		(96,199	)		(49,227	)		77,543			(163.5	%)
Foreign exchange transactions,net		82,174			42,050			(44,248	)		(195.0	%)
Net result from financial transactions		(14,024	)		(7,177	)		33,295			--	%
Other operating income, net
Other operating income, net		(66,054	)		(33,801	)		(25,091	)		34.7	%
Operating expenses
Personnel salaries and expenses		(246,959	)		(126,374	)		(111,605	)		13.2	%
Administrative and other expenses		(177,032	)		(90,591	)		(81,005	)		11.8	%
Depreciation and amortization		(63,639	)		(32,566	)		(28,614	)		13.8	%
Total operating expenses		(487,630	)		(249,530	)		(221,224	)		12.8	%
Other income and expenses
Nonoperating income, net		17,919			9,170			(13,268	)		(169.1	%)
Income attributable to investments in other companies		(2,401	)		(1,229	)		868			(241.6	%)
Losses attributable to minority interest		(3,344	)		(1,711	)		(112	)		1427.9	%
Total other income and expenses		12,174			6,230			(12,512	)		(149.8	%)
Gain (loss) from price-level restatement		(77,550	)		(39,684	)		(16,263	)		144.0	%
Income before income taxes		549,660			281,272			270,397			4.0	%
Income taxes		(84,812	)		(43,400	)		(45,684	)		(5.0	%)
Net income		464,848			237,872			224,713			5.9	%

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nominal pesos

	2006												2007
	1Q06			2Q06			3Q06			4Q06			1Q07			2Q07			3Q07			4Q07
	Reclassified
ASSETS

CASH AND DUE FROM BANKS
Noninterest bearing		346,360			855,315			716,085			947,741			410,617			740,303			647,437
Interbank deposit-interest bearing		969,594			731,049			307,289			144,666			605,586			291,332			225,446
Total cash and due from banks		1,315,954			1,586,364			1,023,373			1,092,407			1,016,203			1,031,635			872,883

FINANCIAL INVESTMENTS
Trading		844,288			839,973			671,975			639,461			790,234			669,060			806,778
Available for sale		561,962			543,136			602,872			345,108			360,745			673,992			807,492
Held to maturity		0			0			0			0			0			0			0
Investments purchased under agreements to resell		33,036			181,925			14,422			30,807			46,692			31,112			39,192
Total financial investments		1,439,286			1,565,034			1,289,269			1,015,376			1,197,671			1,374,164			1,653,462

LOANS,NET
Commercial loans		3,958,263			4,006,219			4,082,361			4,048,221			4,172,835			4,221,007			4,333,120
Consumer loans		1,480,355			1,590,374			1,692,432			1,800,507			1,869,318			1,889,268			1,944,579
Mortgage loans (Financed with mortgage bonds)		585,309			555,077			525,963			485,849			456,482			429,819			408,094
Foreign trade loans		589,509			671,886			656,171			741,776			869,615			663,313			853,479
Interbank loans		195,798			146,725			134,609			151,491			168,554			350,393			182,051
Leasing		694,733			720,424			754,572			764,408			787,287			810,598			836,268
Other outstanding loans		2,199,034			2,343,218			2,519,305			2,681,461			2,775,762			2,955,955			3,134,444
Past due loans		100,382			88,559			88,863			92,559			97,937			105,668			112,130
Contingent loans		933,590			1,030,589			963,463			1,022,687			1,010,376			1,115,134			996,156
Reserve for loan losses		(149,112	)		(147,582	)		(160,879	)		(174,064	)		(200,021	)		(211,113	)		(221,070	)
Total loans, net		10,587,861			11,005,488			11,256,859			11,614,895			12,008,146			12,330,042			12,579,251

DERIVATIVES		305,712			325,163			305,641			372,688			377,628			419,417			584,999

OTHER ASSETS
Bank premises and equipment		219,510			221,255			222,441			231,360			222,228			226,927			239,049
Foreclosed assets		13,815			12,778			14,373			15,775			12,641			11,222			13,667
Investments in other companies		6,600			6,642			6,941			6,654			7,026			5,707			49,140
Assets to be leased		24,263			20,754			23,619			30,293			27,572			40,271			5,847
Other		557,395			463,448			483,377			463,991			664,310			773,696			757,264
Total other assets		821,582			724,877			750,751			748,072			933,777			1,057,823			1,064,967

TOTAL ASSETS		14,470,395			15,206,926			14,625,894			14,843,439			15,533,424			16,213,081			16,755,562

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nominal pesos

	2006								2007
	1Q06		2Q06		3Q06		4Q06		1Q07		2Q07		3Q07		4Q07
	Reclassified
LIABILITIES AND SHAREHOLDERS' EQUITY

DEPOSITS
Noninterest bearing
Current accounts		1,481,426		1,572,712		1,487,518		1,663,414		1,676,370		1,721,326		1,717,638
Bankers´ drafts and other deposits		736,502		794,842		787,028		819,583		867,199		927,933		938,409
		2,217,928		2,367,553		2,274,546		2,482,997		2,543,569		2,649,259		2,656,047

Savings accounts and time deposits		6,264,072		6,645,164		6,816,812		6,909,335		7,280,989		7,343,069		7,273,063
Total deposits		8,482,000		9,012,717		9,091,358		9,392,332		9,824,557		9,992,328		9,929,110

OTHER INTEREST BEARING LIABILITIES
Chilean Central Bank borrowings
Credit lines for renegotiations of loans		6,120		5,752		5,487		5,080		4,605		4,307		4,151
Other Central Bank borrowings		124,311		166,067		184,147		134,417		237,241		102,145		269,096
Total Central Bank borrowings		130,431		171,819		189,634		139,497		241,846		106,452		273,247

Investments sold under agreements to repurchase		96,447		149,641		73,434		19,929		167,280		158,899		123,291

Mortgage finance bonds		621,469		592,837		560,334		530,206		509,697		484,368		473,283

Other borrowings
Bonds		448,214		562,778		559,165		565,653		562,285		747,098		980,497
Subordinated bonds		390,756		390,984		490,974		490,416		491,133		477,041		440,598
Borrowings from domestic financial institutions		0		3,590		3,777		0		0		0		4,822
Foreign borrowings		1,547,899		1,637,251		924,776		812,267		615,930		1,164,200		1,183,763
Other obligations		47,421		53,338		43,235		64,193		70,047		52,409		118,870
Total other borrowings		2,434,290		2,647,940		2,021,926		1,932,529		1,739,394		2,440,748		2,728,550
Total other interest bearing liabilities		3,282,637		3,562,237		2,845,328		2,622,161		2,658,217		3,190,467		3,598,371

DERIVATIVES		277,760		289,098		307,621		355,922		375,290		365,167		568,581

OTHER LIABILITIES
Contingent liabilities		934,634		1,031,766		964,924		1,024,048		1,012,880		1,116,959		997,259
Other		340,261		224,683		228,038		202,115		327,831		302,219		294,766
Minority interest		1,518		1,442		1,489		1,522		17,464		17,888		19,313
Total other liabilities		1,276,413		1,257,890		1,194,451		1,227,685		1,358,175		1,437,066		1,311,338

SHAREHOLDERS' EQUITY
Capital and reserves		1,087,152		940,206		962,424		959,757		1,244,996		1,075,377		1,110,290
Income for the period		64,434		144,779		224,713		285,582		72,189		152,676		237,872
Total shareholders' equity		1,151,586		1,084,985		1,187,137		1,245,339		1,317,185		1,228,053		1,348,162

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		14,470,395		15,206,926		14,625,894		14,843,439		15,533,424		16,213,081		16,755,562

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nominal pesos

	2006												2007
	1Q06			2Q06			3Q06			4Q06			1Q07			2Q07			3Q07			4Q07
	Reclassified
CONSOLIDADTE INCOME STATEMENT

INTEREST REVENUE AND EXPENSE
Interest revenue		217,595			341,190			356,538			253,529			288,317			380,183			504,325
Interest expense		(91,706	)		(167,941	)		(180,320	)		(116,630	)		(132,425	)		(188,020	)		(261,570	)
Net interest revenue		125,889			173,249			176,217			136,899			155,892			192,163			242,755
PROVISIONS FOR LOAN LOSSES		(25,471	)		(21,760	)		(36,277	)		(39,514	)		(36,331	)		(45,214	)		(46,010	)
FEES AND INCOME FROM SERVICES
Fees and other services income		46,540			49,418			50,458			51,910			55,370			57,641			60,856
Other services expenses		(8,210	)		(9,651	)		(8,211	)		(9,705	)		(10,261	)		(10,534	)		(11,094	)
Total fees and income from services, net.		38,330			39,767			42,247			42,205			45,109			47,107			49,762
NET RESULTS FROM FINANCIAL TRANSACTIONS
Net gains from trading and brokerage activities		43,308			39,291			(5,056	)		22,772			15,492			(628	)		(64,091	)
Foreign exchange transactions, net		(19,997	)		(29,750	)		5,499			(4,460	)		(5,262	)		5,167			42,145
Net results from financial transactions		23,311			9,541			443			18,312			10,230			4,539			(21,946	)
OTHER OPERATING INCOME
Other operating income (loss), net		(7,770	)		(9,133	)		(8,188	)		(7,869	)		(10,537	)		(11,298	)		(11,966	)
OPERATING EXPENSES
Personnel salaries and expenses		(34,005	)		(39,132	)		(38,468	)		(48,118	)		(37,664	)		(42,879	)		(45,831	)
Administrative and other expenses		(25,836	)		(27,607	)		(27,563	)		(29,943	)		(28,604	)		(30,354	)		(31,633	)
Depreciation and amortization		(9,076	)		(9,888	)		(9,650	)		(10,000	)		(9,833	)		(10,585	)		(12,148	)
Total operating expenses		(68,917	)		(76,626	)		(75,680	)		(88,061	)		(76,101	)		(83,818	)		(89,612	)
OTHER INCOME AND EXPENSES
Non-operating income (loss), net		(11,017	)		(8,522	)		6,269			9,055			1,051			5,613			2,507
Income attributable to investments in other companies		240			409			219			(82	)		134			(728	)		(635	)
Losse s atributable to Minority interest		(65	)		(20	)		(28	)		(41	)		(540	)		(282	)		(890	)
Total other income and expenses		(10,842	)		(8,132	)		6,460			8,932			645			4,603			982
LOSS FROM PRICE-LEVEL RESTATEMENT		2,781			(10,247	)		(8,796	)		2,480			(2,149	)		(13,633	)		(23,902	)
INCOME BEFORE INCOME TAXES		77,311			96,658			96,427			73,384			86,758			94,449			100,063
Income taxes		(12,877	)		(16,314	)		(16,493	)		(12,516	)		(14,569	)		(13,962	)		(14,867	)
NET INCOME		64,434			80,345			79,934			60,868			72,189			80,487			85,196

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nominal pesos

	2006												2007
	1Q06			2Q06			3Q06			4Q06			1Q07			2Q07			3Q07			4Q07
	Reclassified
Appendix

Net interest income		125,889			173,249			176,217			136,899			155,892			192,163			242,755			0
Inflation hedge		1,527			(7,488	)		(9,968	)		3,030			(1,445	)		(10,380	)		(19,620	)		0
Adjusted net interest income		127,416			165,761			166,249			139,929			154,447			181,783			223,135
Fee income		38,330			39,767			42,247			42,205			45,109			47,107			49,762			0
Core revenues		165,746			205,528			208,496			182,134			199,556			228,890			272,897			0
Gross operating income		154,289			191,664			174,443			150,033			164,363			187,297			212,595			0
Net operating income		85,373			115,038			98,763			61,972			88,262			103,479			122,983			0

Net income per share (Ch$)		0.34			0.43			0.42			0.32			0.38			0.43			0.45
Net income per ADR (US$)		0.67			0.81			0.82			0.63			0.74			0.84			0.92

Profitability & Efficiency
Net interest margin		3.9	%		5.0	%		5.0	%		4.0	%		4.4	%		5.5	%		6.8	%
Adjusted net interest margin		3.9	%		4.8	%		4.7	%		4.1	%		4.6	%		5.2	%		6.2	%
Efficiency ratio		38.3	%		35.9	%		35.9	%		46.5	%		37.9	%		36.0	%		34.7	%
Return on average equity		22.8	%		28.7	%		27.5	%		18.3	%		22.4	%		25.8	%		26.1	%

Asset Quality
PDL / total loans		0.93	%		0.79	%		0.78	%		0.79	%		0.80	%		0.84	%		0.88	%
Coverage ratio		148.5	%		166.6	%		181.0	%		188.1	%		204.2	%		199.8	%		197.2	%

Capitalization
BIS ratio		14.3	%		12.2	%		12.8	%		12.6	%		14.6	%		13.0	%		12.5	%

Network
Branches		361			367			368			397			410			417			425
ATMS		1,395			1,443			1,479			1,588			1,635			1,744			1,808
Employees		7,583			7,782			8,029			8,184			8,691			8,913			9,057

Market information (period-end)
Stock price		22.1			20.8			23.5			24.8			25.9			25.2			24.8
ADR price		43.6			40.3			45.3			48.2			49.9			49.5			50.6
Market capitalization (US$mn)		7,908			7,317			8,207			8,735			9,045			8,985			9,172
Shares outstanding		188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1
ADRs (1 ADR = 1,039 shares)		181.4			181.4			181.4			181.4			181.4			181.4			181.4

Other Data
Quarterly inflation rate**		-0.33	%		1.00	%		1.38	%		-0.35	%		0.20	%		1.00	%		2.98	%
Exchange rate (Ch/US$) (period-end)		527.7			547.31			538.22			534.43			539.37			527.46			511.72