About Banco Santander-Chile

Banco Santander-Chile provides a broad range of commercial and retail banking services to the company’s customers, including Chilean peso and foreign currency denominated loans to finance a variety of commercial transactions, trade, foreign currency forward contracts and credit lines and a variety of retail banking services, including mortgage financing. In addition to its traditional banking operations, the company offers a variety of financial services, including financial leasing, financial advisory services, mutual fund management, securities brokerage, insurance brokerage and investment management. The company has branches operated under the Santander brand name, the Select brand name, specialized branches for the Middle Market and auxiliary and payment centers. During 2022, the company also opened Santander Workcafes in Chile. The company provides a full range of financial services to corporate and individual customers. The company divides its clients into the following groups: Retail banking, Middle-market, Corporate Investment Banking and Corporate Activities (Other). Segments Retail Banking This segment consists of individuals and small to medium-sized entities (SMEs) with annual sales less than Ch$3,000 million (U.S.$3.5 million). This segment gives customers a variety of services, including consumer loans, credit cards, auto loans, commercial loans, foreign exchange, mortgage loans, debit cards, checking accounts, savings products, securities brokerage, and insurance brokerage. Additionally, the SME clients are offered government-guaranteed loans, foreign trade services, leasing, factoring, and transactional services. Middle-market This segment serves companies and large corporations with annual sales exceeding Ch$3,000 million (U.S.$3.5 million). It also serves institutions, such as universities, government entities, local and regional governments and companies engaged in the real estate industry who carry out projects to sell properties to third parties and annual sales exceeding Ch$800 million (U.S.$0.9 million) with no upper limit. The companies within this segment have access to many products, including commercial loans, leasing, factoring, foreign trade, credit cards, mortgage loans, checking accounts, transactional services, treasury services, financial consulting, savings products, securities brokerage, and insurance brokerage. Also, companies in the real estate industry are offered specialized services to finance projects, chiefly residential, with the aim of expanding sales of mortgage loans. Corporate Investment Banking This segment consists of foreign and domestic multinational companies with sales over Ch$10,000 million (U.S.$11.8 million). The companies within this segment have access to many products, including commercial loans, leasing, factoring, foreign trade, project finance, credit cards, mortgage loans, checking accounts, transactional services, treasury services, financial consulting, investments, savings products, securities brokerage, and insurance brokerage. This segment also consists of a Treasury Division which provides sophisticated financial products, mainly to companies in the Middle-market segment and Corporate Investment Banking. These include products, such as short-term financing and fund raising, brokerage services, foreign exchange services, derivatives, securitization and other tailor-made products. The Treasury Division may act as broker to transactions and manages the company’s trading fixed income portfolio. Corporate Activities (Other) This segment mainly includes the company’s Financial Management Division, which develops global management functions, including managing inflation rate risk, foreign currency gaps, interest rate risk and liquidity risk. Liquidity risk is managed mainly through wholesale deposits, debt issuances and the company’s available-for-sale portfolio. This segment also manages capital allocation by unit. Regulation and Supervision The company, as a foreign private issuer whose securities are registered under the U.S. Securities Exchange Act of 1934, is subject to the U.S. Foreign Corrupt Practices Act (the FCPA). Furthermore, the company is subject to a variety of the U.S. anti-money laundering and anti-terrorist financing laws and regulations, such as the Bank Secrecy Act of 1970, as amended, and the USA PATRIOT Act of 2001, as amended. The company is required to bring its activities and investments into compliance with the requirements of the Section 13 of the U.S. Bank Holding Company Act and its implementing rules (collectively, the Volcker Rule) by the end of the conformance period applicable to each requirement. Competition The company competes with other private sector Chilean and non-Chilean banks, with Banco del Estado de Chile, the principal government-owned sector bank. History Banco Santander-Chile was founded in 1977. The company was incorporated in 1977.