The Banco Santander-Chile (Santander-Chile) common stock price reached our target price on 11 June 2009, supported by a broad-based stock market rally and positive reaction to the company's healthy fundamentals. However, at current levels, we believe that the company's 6-12 month fundamental upside potential has been exhausted. Therefore, we moderate the common stock from a BUY to a HOLD. We will reassess our target price and rating in our next update…

Chilean GDP contracted by 3.4% in 4Q 08 (compared to growth of 4.6% in 3Q 08), and the central bank (Banco Central de Chile, or BCC) is forecasting that GDP will be flat in 2009, with growth of 3% anticipated in 2010. Meanwhile, CPI inflation has eased from a high of 9.9% in October 2008 to 5.5% in February 2009, and, according to the BCC’s Economic Expectation Survey (March 2009), inflation will fall to an annualized rate…

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Banco Santander-Chile (Santander-Chile) sustained healthy growth momentum in core revenues during 3Q 08, despite unfavorable economic conditions in Chile. Growth was primarily attributable to healthy Net Interest Margin (NIM) expansion, reflecting growing spreads on foreign trade lending and the positive impact of inflation on yields, supported by higher fee-based income....