Diapositiva 1

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Banco Santander SantiagoLeading performance
in retail bankingMay 2006
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Important information
Banco Santander Chile caution that this
presentation contains forward looking statements
within the meaning of the US Private Securities
Litigation Reform Act of 1995. These forward
looking statements are found in various places
throughout this presentation and include, without
limitation, statements concerning our future
business development and economic performance.
While these forward looking statements represent
our judgment and future expectations concerning
the development of our business, a number of
risks, uncertainties and other important factors
could cause actual developments and results to
differ materially from our expectations. These
factors include, but are not limited to (1)
general market, macro-economic, governmental and
regulatory trends (2) movements in local and
international securities markets, currency
exchange rates, and interest rates (3)
competitive pressures (4) technological
developments and (5) changes in the financial
position or credit worthiness of our customers,
obligors and counterparties. The risk factors and
other key factors that we have indicated in our
past and future filings and reports, including
those with the Securities and Exchange Commission
of the United States of America, could adversely
affect our business and financial
performance. Note the information contained in
this presentation is not audited. Nevertheless,
the consolidated accounts are prepared on the
basis of generally accepted accounting principles
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Main points

• Chile a sound and fast growing economy
• A financial system with high growth potential,
  especially in retail banking
• Santander Santiago Chiles leading retail
  franchise
• Strategic focus increase profitability by
  expanding retail banking activities. 2005
  1Q06 results in line with this goal
• Positive 2006-07 outlook

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Macroeconomic scenario
Stability of the rules helps to sustain economic
growth

• Solid fundamentals high growth, low interest and
  inflation rates, fiscal surplus, balanced current
  account and high savings rate
• Stability fiscal and monetary policy based on
  transparent rules and policies
• Open economy (average tariff lt 2) Free trade
  agreements with USA, Europe, China, Canada, Korea
  and New Zealand. Talks with India and Japan
• Some risk factors deceleration of the world
  economy unexpected downward shifts in prices of
  commodities overheating of local economy

Healthy environment for banks
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Macroeconomic scenario
Low country risk reflects Chiles stability and
strengths
SPREAD OVER U.S. T-BILLS (Basis points)
SOVEREIGN RATINGS
EMBI index
191
CHILE index
68
Source Bloomberg, JP Morgan Standard Poors
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Main points

• Chile a sound and fast growing economy
• A financial system with high growth potential,
  especially in retail banking
• Santander Santiago Chiles leading retail
  franchise
• Strategic focus increase profitability by
  expanding retail banking activities. 2005
  1Q06 results in line with this goal
• Positive 2006-07 outlook

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Financial System
Loans to individuals growing above 22 per annum
Total loans, constant US billion as of 1Q 2006
Loans to individuals Consumer residential
mortgage Source Superintendence of Banks
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Financial System
Healthy growth of deposits and assets managed
Customer funds, constant US billion as of 1Q 2006
Source Superintendence of Banks
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Financial System
High potential to increase bank penetration
levels...
Loans / GDP,
Source National Central Banks, European
Intelligence Unit and FED. As of 12-31-05 except
US as of 09-30-05
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Financial System
especially in retail banking
Loans to individuals / GDP,
Household debt / Disposable income
Loans to individuals / Total loans
Consumer mortgage. Source
Superintendency of Banks, Central Banks
European Intelligence Unit. Figures as of
Dec. 2005 except USA 09/2005 Source Banco
Central de Chile, Informe de Estabilidad
Financiera, 2º Semester 2005
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Financial System
High potential in non-lending products
Figures as of December 2005
MUTUAL FUNDS / GDP,
NON-LIFE INSURANCE / GDP,
Source Merrill Lynch
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Financial System
Low penetration levels even compared to regional
peers
UK
Europe
Mexico
Brazil
Chile
US
5.3 2.4 0.8 1,122 1,055 38 87
6.6 1.4 0.7 529 910 23 45
0.75 0.3 0.2 80 338 6 13
1.3 0.4 0.7 233 607 137 8
1.0 0.1 0.2 176 200 19 4
3.6 n.a 1.3 4,384 902 126 126

• Branches per 10,000 Inhabitants
• Nº Account per Inhabitants
• Nº ATM per 1,000 Inhabitants
• Nº Cards per 1,000 Inhabitants
• Credit Card
• Debit Card
• Nº Transactions per Inhabitant
• Checking
• Payments with Cards

Source División América, Grupo Santander Central
Hispano for Chile, EU, Mexico and Brazil. Bank
for International Settlements for US and UK
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Main points

• Chile a sound and fast growing economy
• A financial system with high growth potential,
  especially in retail banking
• Santander Santiago Chiles leading retail
  franchise
• Strategic focus increase profitability by
  expanding retail banking activities. 2005
  1Q06 results in line with this goal
• Positive 2006-07 outlook

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Santander Santiagos franchise
A strong competitive position in the Chilean
market
Figures as of 3.31.06
Amount Rank Assets US 28.5 bn. 1 Loans US 19.1
bn. 1 Client funds US 19.9 bn. 1 Net
income (1Q 06) US 124mn. 1 Branches 361 1 ATMs 1
,395 1 Customers 2.2 mn. 1
Santander is leader in profitability, size and
efficiency
Time deposits checking accounts mutual
funds
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Santander Santiagos franchise
Largest client base with low penetration leveles
Figures for middle-upper upper income
individuals, as of 2005

• 1 out of 3 clients has checking account
• 1 out of 3 clients has credit card
• 1 out 10 clients has consumer credit
• Within clients with checking accounts
• 1 out of 10 has a mutual fund
• 1 out of 5 has a mortgage

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Santander Santiagos franchise
Strong retail banking activities
Figures for 2005
Other 2
Other 8
Corporate Treasury
Corporate Treasury
Individuals
Middle Market
Individuals
Middle Market
SMEs
SMEs
56 Individuals SMEs
64 Individuals SMEs
Core revenue net interest income fees
SMEs includes Institutional Lending
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Capital
Strong capital base to support growth
BIS RATIO (April 06) 12.9 TIER I 9.3
TIER II 3.6

• Santander Santiago has the best risk rating in
  Latin America
• SP A, Fitch A, Moodys Baa1
• Moodys Financial Strength B- Top 5 among
  emerging banks. Outlook Positive

A unique position to benefit from an expanding
retail market
Ex-dividend
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Main points

• Chile a sound and fast growing economy
• A financial system with high growth potential,
  especially in retail banking
• Santander Santiago Chiles leading retail
  franchise
• Strategic focus increase profitability by
  expanding retail banking activities. 2005
  1Q06 results in line with this goal
• Positive 2006-07 outlook

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Strategy
Strengthening our leadership in retail banking
Santander Chile Strategic Focus 2006-2008

• Growth above competition in retail banking
• Increase client base and cross-selling by
  improving client services and expanding
  distribution network
• Improve efficiency through gains in productivity
  and cost control in order to help finance
  investments in retail
• Proactive management of asset quality in order to
  balance growth in retail banking with
  normalization of provision expense levels

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1. Growth above competition in retail banking
Strong growth in lending to individuals and SMEs
Loans, Ch billion
Volume Ch bn
Chg. YoY
Retail Loans
Individuals 4,372 23.3 Consumer 1,480
28.0 Mortgage 2,381 26.5 SMEs 1,495 30.7
Retail 5,867 25.1 Institutional
183 16.2 Middle-Market 2,125 14.5 Corporate
1,428 4.3 Total 10,737 17.8
25.1
Total Loans includes Other non-segmented loans
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1. Growth above competition in retail banking
Gaining market share in key products
Market share as of 03.31.06, and YoY change in
basis points
Source Superintendence of Banks
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1. Growth above competition in retail banking
Better asset mix improves the net interest margin
Quarterly net interest income (Ch million) and
margins()
19.4
15.3
4.37
4.74
22 bp
22 bp
4.15
4.52
Net interest income foreign exchange
transactions / Average earning assets
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2. Increase client base and cross-selling
A larger and more profitable client base
Clients, thousand
TOTAL CLIENTS
CROSS-SOLD CLIENTS W/ CHECKING
29.0
11.9
CROSS-SOLD BANEFE
CROSS-SOLD SMEs
44.2
16.7
Clients that use 4 or more products including
checking (excludes Santander Banefe)

Santander Banefe clients that use 2 or
more products including a transactional product
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2. Increase client base and cross-selling
Larger and more profitable client base drives fee
growth
Fee income, Ch billion
Fees over cost ratio reached record level of
55.6 in 1Q 2006
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3. Improve efficiency
Costs under control. Growing efficiently
Efficiency ratio,
Record efficiency ratio in 1Q 2006
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3. Improve efficiency
Expanding our distribution network
ATMs
BRANCHES
45 (14.2)
208 (17.5)

• Strengthening distribution capabilities
• Bank 15-20 new branches a year
• Banefe 15-20 new branches a year
• Complementary channels (Internet, ATMs, Call
  Center)

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4. Proactive management of asset quality
Sound asset quality
Provision expense, Ch million
Provision expense expected to grow in line with
retail activity
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Overall Performance
Solid ratios compared with competition
Ratios as of 3.31.06. YoY increase in basis points
2005
2006
ROE
COST / INCOME
260 bp
-350 bp
20 bp
-290 bp
-150 bp
-170 pb
NET INTEREST MARGIN
FEES / COSTS
40 bp
10 bp
20 bp
890 bp
-360 bp
320bp
As reported by the Superintendence of Banks
unconsolidated figures. Peer Group Banco de
Chile, BCI, Corpbanca BBVA Source
Superintendence of Banks
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Main points

• Chile a sound and fast growing economy
• A financial system with high growth potential,
  especially in retail banking
• Santander Santiago Chiles leading retail
  franchise
• Strategic focus increase profitability by
  expanding retail banking activities. 2005
  1Q06 results in line with this goal
• Positive 2006-07 outlook

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Positive Outlook 2006-07

• A growing and sound economic environment should
  sustain growth in 2006-07
• We will continue to deepen our strong competitive
  advantages in retail banking in terms of client
  base, distribution and clients service
• Growth in retail banking should help to sustain
  our high margins and push fee income
• World class efficiency levels should improve.
  Economies of scale, further productivity
  initiatives and top of the line systems
  (Altec-Altair) should allow us to grow
  efficiently
• Asset quality should remain under control.
  Provision expense should move in line with retail
  activities

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