Santiago, Chile, April 28, 2006. Banco Santander Santiago (NYSE: SAN) announced today its unaudited results for the first quarter of 2006. These results are reported on a consolidated basis in accordance with Chilean GAAP^1,2 in nominal Chilean pesos.

In the first quarter of 2006 net income totaled Ch$64,434 million (Ch$0.34 per share and US$0.67/ADR), increasing 19.4% compared to 1Q 2005 (from now on YoY). Core revenues (net financial income and fees) increased 20.4% YoY as the Bank continued to gain market share in key products and services.

Net financial income grew 19.4% YoY driven by higher margins and strong loan growth. The better earnings mix resulted in a higher net interest margin, which increased 22 basis points to 4.37% compared to 1Q 2005. In the quarter, total loans increased 5.8% QoQ and 17.8% YoY. Total loan market share reached 23.0% as of March 2006, increasing 40 basis points since year-end 2005. Higher consumer confidence continued to fuel the demand for consumer and residential mortgage loans in the quarter. Total market share in lending to individuals, as defined by the Superintendence of Banks, was 25.3% as of March 2006 and went up 20 basis points since the beginning of the year and 80 basis points YoY. The growth of internal investment and foreign trade led to a rise in lending to small and mid-sized companies (SMEs), the middle market and corporates. Spreads in these segments have also been rising increasing the attractiveness of lending to these clients. As a result, market share in lending to companies, as defined by the Superintendence of Banks, increased 50 basis points QoQ to 21.9% .

Net fee income increased 24.3% YoY. Greater product usage has boosted fee income. In 1Q 2006 fees from checking accounts increased 24.2% . Market share in checking accounts reached 25.6% as of February 2006 compared to 23.6% as of February 2005, the latest figures available. Credit card fees increased 41.6% YoY. Santander Santiago’s credit cards were growing 19.5% YoY. ATM fees increased 15.9% in 1Q 2006 compared to the same period of 2005. This rise is in line with the 17.5% YoY growth of the Bank’s ATM network. Insurance brokerage fees increased 26.0% YoY as the Bank continues to successfully cross-sell its client base with innovative insurance products.

Provision expense increased 49.9% YoY. The net charge-off ratio (total provisions, net of recoveries divided by total loans) reached 0.95% compared to 0.75% in 1Q 2005 and 0.66% in 4Q 2005. This rise in provision expenses was mainly due to the rise in consumer lending and a seasonal increase in short-term non-performance (1-89 days). Asset quality continued to improve in the rest of the portfolio in line with the evolution of the economy. The ratio of required reserves over total loans ratio, which measures the expected loss of the loan portfolio, reached 1.36% as of March 2006 compared to 1.42% as of December 2005 and 1.86% in 1Q 2005. Past due loans in 1Q 2006 decreased 5.8% QoQ and 19.9% YoY. The ratio of past due loans to total loans reached 0.93% in 1Q 2006 compared to 1.05% in 4Q 2005 and 1.38% in 1Q 2005. Coverage of past due loans reached 145.2% in 1Q 2006 compared to 135.1% in 1Q 2005.

2

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

Costs remain under control. In 1Q 2006 the efficiency ratio reached a record level of 38.3% compared to 41.8% in 1Q 2005. The Bank has the lowest efficiency ratio among the leading banks in Chile and Latin America. Operating expenses increased 6.9% YoY in 1Q 2006. The Bank continues to improve productivity, which has help to fund the investments in the branch network.

Banco Santander Santiago		Quarter									Change %
(Ch$ million)		1Q 2006			4Q 2005			1Q 2005			1Q 2006/2005			1Q 2006 / 4Q 2005
Net financial income		141,120			151,081			118,148			19.4	%		(6.6	%)
Fees and income from services		38,330			39,584			30,847			24.3	%		(3.2	%)
Core revenues		179,450			190,665			148,995			20.4	%		(5.9	%)
Total provisions, net of recoveries		(25,471	)		(16,635	)		(16,995	)		49.9	%		53.1	%
Other operating income,		309			(24,491	)		5,484			(94.4	%)		--
Operating expenses		(68,917	)		(75,761	)		(64,498	)		6.9	%		(9.0	%)
Net operating income		85,371			73,778			72,986			17.0	%		15.7	%
Income before income taxes		77,311			67,877			66,515			16.2	%		13.9	%
Net income		64,434			57,216			53,960			19.4	%		12.6	%
Net income/share (Ch$)		0.34			0.30			0.29			19.4	%		12.6	%
Net income/ADR (US$)1		0.67			0.61			0.51			32.7	%		9.7	%
Total loans		10,736,973			10,144,273			9,112,371			17.8	%		5.8	%
Customer funds		10,234,278			9,582,834			8,586,747			19.2	%		6.8	%
Shareholders’ equity		1,151,586			1,081,832			1,074,775			7.1	%		6.4	%
Net interest margin		4.37	%		4.86	%		4.15	%
Efficiency ratio		38.3	%		45.6	%		41.8	%
Return on average equity2		22.8	%		21.7	%		20.5	%
PDL / Total loans		0.93	%		1.05	%		1.38	%
Coverage ratio of PDLs		145.2	%		135.3	%		135.1	%
Risk index3		1.39	%		1.46	%		1.91	%
BIS ratio		14.3	%		12.9	%		16.2	%
Branches		361			352			316
ATMs		1,395			1,422			1,187
Employees		7,583			7,482			7,403

1.	The change in earnings per ADR may differ from the change in earnings per share due to the exchange rate.
2.	Annualized Quarterly Earnings / Average Equity.
3.	Total reserve for loan losses / Total loans

3

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

---

INTEREST EARNING ASSETS

Sustained economic growth results in solid loan growth in various products and segment

Interest Earning Assets		Quarter ended,						% Change
(Ch$ million)		March 31, 2006		Dec. 31, 2005		March 31, 2005		March 2006/2005		March 06 / Dec. 05
Commercial loans		3,958,263		3,655,101		3,317,067		19.3	%	8.3	%
Consumer loans		1,480,355		1,392,012		1,156,130		28.0	%	6.3	%
Residential mortgage loans*		2,381,434		2,281,536		1,883,095		26.5	%	4.4	%
General purpose mortgage loans**		229,005		251,855		331,580		(30.9	%)	(9.1	%)
Foreign trade loans		589,509		511,756		588,552		0.2	%	15.2	%
Leasing		694,733		663,862		536,217		29.6	%	4.7	%
Factoring		161,714		143,687		114,361		41.4	%	12.5	%
Other outstanding loans		12,190		13,800		14,987		(18.7	%)	(11.7	%)
Contingent loans		933,590		929,472		869,201		7.4	%	0.4	%
Interbank loans		195,798		194,652		175,814		11.4	%	0.6	%
Past due loans		100,382		106,540		125,367		(19.9	%)	(5.8	%)
Total loans		10,736,973		10,144,273		9,112,371		17.8	%	5.8	%
Total financial investments		1,499,986		1,249,496		1,746,909		(14.1	%)	20.0	%
Total interest-earning assets		12,236,959		11,393,769		10,859,280		12.7	%	7.4	%

*	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).

The Chilean economy continued to show robust growth. This was apparent in the evolution of the Bank’s loan portfolio in the quarter. In 1Q 2006 total loans increased 5.8% QoQ and 17.8% YoY. Total loan market share reached 23.0% as of March 2006, increasing 40 basis points since the beginning of the year.

Higher consumer confidence continued to fuel the demand for consumer and residential mortgage loans in the quarter. Total market share in lending to individuals, as defined by the Superintendence of Banks, was 25.3% as of March 2006 and went up 20 basis points since the beginning of the year and 80 basis points YoY. Consumer loans expanded 6.3% QoQ and 28.0% YoY. Market share in consumer lending was 25.7% as of March 2006, flat QoQ, and increasing 40 basis points YoY. Residential mortgage lending increased 4.4% QoQ and 26.5% YoY. Market share in mortgage lending reached 25.1% increasing 30 basis points since December 2005 and 90 basis points in 12 months.

The growth of internal investment and foreign trade led to a rise in lending to small and mid-sized companies (SMEs), the middle market and corporates. As a result, market share in lending to companies, as defined by the Superintendence of Banks, increased 50 basis points QoQ to 21.9% after the Bank proactively reduced market share among corporate clients in 2005. Commercial loans increased 8.3% QoQ and 19.3% YoY. Market share reached 20.7% in this product, rising 70 basis points QoQ and flat YoY.

4

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

---

The strength in lending to SMEs and middle market companies was also apparent in the rise in high yielding leasing and factoring operations. Factoring loans rose 12.5% QoQ and 41.4% YoY. Leasing increased 4.7% QoQ and 29.6% YoY. The high level of internal investment has increased the demand for capital goods and equipment, resulting in strong growth of the leasing business. Market share in leasing reached 31.5%, rising 60 basis points QoQ and 140 basis points YoY.

The robust growth in Chile’s trade figures also prompted an important rise in foreign trade lending. Export lending increased 12.1% QoQ and import lending rose 20.6% in the same period.

The 9.1% QoQ and 30.9% YoY decrease in general purpose mortgage lending partially offset loan growth in other products. This was mainly due to a switch in the financing mechanism of commercial real estate towards more attractive variable loans, which are classified as commercial lending.

Higher Market Share in Various Products

Market share evolution		Share %		QoQ Chg. (bp)		YoY Chg. (bp)
Individuals		25.3		+20		+80
Consumer		25.7		+0		+40
Mortgage		25.1		+30		+90
Companies		21.9		+50		-50
Commercial		20.7		+70		+0
Leasing		31.5		+60		+140
Foreign trade		19.6		-100		-140
Total Loans		23.0		+40		-10
Source: Superintendence of Banks, unconsolidated figures

Loans by business segment*		Quarter ended,						% Change
(Ch$ million)		March 31, 2006		Dec. 31, 2005		March 31, 2005		March 2006/2005		March 06 / Dec. 05
Santander Banefe		514,790		491,424		416,080		23.7	%	4.8	%
Middle/upper income		3,856,865		3,711,684		3,129,214		23.3	%	3.9	%
Total loans to individuals		4,371,655		4,203,108		3,545,293		23.3	%	4.0	%
SMEs		1,494,802		1,402,332		1,143,571		30.7	%	6.6	%
Total retail lending		5,866,457		5,605,440		4,688,864		25.1	%	4.7	%
Institutional lending		183,052		181,999		157,546		16.2	%	0.6	%
Middle-Market & Real estate		2,125,214		1,963,468		1,855,576		14.5	%	8.2	%
Corporate		1,427,656		1,261,544		1,368,476		4.3	%	13.2	%

* Excludes contingent loans

All segments showed strong loan growth in 1Q 2006. Retail lending increased 4.7% QoQ and 25.1% YoY, led by the expansion of loans in the high yielding SME segment. In 1Q 2006 loans in this segment increased 6.6% QoQ and 30.7% YoY. Loan growth in this segment was driven by a 9.2% QoQ increase in leasing, a 19.4% QoQ rise in factoring and a 9.5% QoQ growth in consumer loans to SMEs. The Bank is placing a larger emphasis on expanding its presence among SMEs due to the

5

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

---

strong economic indicators that favor growth in this attractive segment.

Loans to individuals continued to expand at a rapid pace in the quarter, increasing 4.7% QoQ and 25.1% YoY. This reflects higher consumer confidence and the expansion of Santander Santiago’s distribution network and client base. Notable in the quarter was the Bank’s successful consumer loan campaign that included the sale of plasma televisions ahead of the upcoming World Cup. Santander Banefe’s loan portfolio expanded 4.8% QoQ and 23.7% YoY. Installment consumer lending led growth in this segment, increasing 6.0% QoQ. Residential mortgage lending in this segment grew 4.7% QoQ. Loans to middle and upper income individuals increased 3.9% QoQ and 23.3% YoY. Loan growth in this segment was led by a 6.5% QoQ rise in installment consumer loans, a 4.6% increase in credit card loans and a 4.3% rise in mortgage lending. This was partially offset by the flat growth of past due loans and commercial loans in this segment.

Lending to the middle market segment increased 8.2% QoQ and 14.5% YoY. The incentive programs designed for commercial teams to avoid the seasonal decline in business activity had a positive effect on growth in this segment in 1Q 2006. Growth was led by a 24.8% QoQ increase in high yielding lines of credit (classified as commercial loans). Foreign trade loans also increased 19.5% QoQ in this segment in 1Q 2006 and commercial loans (excluding lines of credit) grew 9.1% QoQ. This was partially offset by the 5.6% fall in past due loans in this segment.

Total loans in corporate banking increased 13.2% QoQ and 4.3% YoY. Many important sectors of the economy such as utilities, forestry, mining, retail and telecommunications are also increasing their investment plans, which are fuelling growth in the corporate segment. The spread in this segment has also begun to rise in tandem with medium and long-term rates, increasing the attractiveness of lending to this segment, especially when taking into account the profitable non-lending product also offered to these clients. Loan growth was driven by a 17.9% increase in leasing and a 13.7% rise in commercial loans, reflecting the aforementioned rise in demand for capital goods and investments.

CUSTOMER FUNDS

Market share rising in demand deposits QoQ.

Funding		Quarter ended,						% Change
(Ch$ million)		March 31, 2006		Dec. 31, 2005		March 31, 2005		March 2006/2005		March 06 / Dec. 05
Non-interest bearing deposits		2,217,928		2,168,810		2,512,512		(11.7	%)	2.3	%
Time deposits and savings accounts		6,264,072		5,906,711		4,603,981		36.1	%	6.1	%
Total customer deposits		8,482,000		8,075,522		7,116,493		19.2	%	5.0	%
Mutual funds		1,752,278		1,507,312		1,470,254		19.2	%	16.3	%
Total customer funds		10,234,278		9,582,834		8,586,747		19.2	%	6.8	%

The overnight interbank rate, a reference rate for time deposits increased 23 bp. to 4.59% between 4Q 2005 and 1Q 2006. As a result, the banking system continued to receive a strong inflow of short-term deposits. The Bank’s time deposits increased 6.1% QoQ and 36.1% YoY.

The quarterly average balance of non-interest bearing demand deposits, net of clearance increased 5.2% QoQ despite the higher rate environment. In 4Q 2005 a new automatic clearing system was

6

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

---

introduced for large corporate accounts and financial institutions which resulted in a lower cash clearing balances that positively affected the average amount of non-interest bearing liabilities on the balance sheet, net of clearing. The growth in the number of checking account has also boosted checking account balances. The Bank’s market share in demand deposit volumes has increased 50 basis points since the beginning of the year, reaching 22.9% .

Total quarterly average non-interest bearing demand deposits*		Quarter ended,						Change %
(Ch$ million)		Dec. 31, 2005		Sept. 30, 2005		Dec. 31, 2004		Dec. 2005/2004		Dec. / Sept. 2005
Total		1,781,222		1,692,480		1,741,670		2.3%		5.2%

* Net of clearance

Assets under management increased 16.3% QoQ. In 4Q 2005 the rise in long-term rates resulted in an outflow of funds. In the 1Q 2006 the downward movement of long-term interest rates and the negative inflation rates resulted in an inflow of funds back into mutual funds. The Bank’s market share in mutual funds increased to 21.7% in 1Q 2006 compared to 21.6% as of year-end 2005.

7

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

---

NET FINANCIAL INCOME

Loan growth and higher margins drives net financial income growth

Net Financial Income		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Net interest income		125,774		149,927		115,863		8.6	%	(16.1	%)
Foreign exchange transactions 3		15,346		1,154		2,285		571.6	%	1,229.8	%
Net financial income		141,120		151,081		118,148		19.4	%	(6.6	%)
Average interest-earning assets		12,919,760		12,436,024		11,367,464		13.7	%	3.9	%
Net interest margin*		4.37	%	4.86	%	4.15	%
Avg. equity + non-interest bearing
demand deposits / Avg. earning		22.5	%	22.1	%	24.6	%
assets
Quarterly inflation rate**		(0.33	%)	1.45	%	(0.68	%)
Avg. overnight interbank rate
(nominal)		4.59	%	4.36	%	2.65	%
Avg. 10 year Central Bank yield
(real)		3.00	%	3.20	%	2.93	%

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

Net financial income in 1Q 2006 increased 19.4% compared to 1Q 2005. This rise was mainly driven by the 13.7% increase in average interest earning assets and a 22 bp YoY rise in net interest margins compared to 1Q 2005 to 4.37% .

The YoY evolution in net interest margins was mainly due to:

-

Improved asset mix. The strength of loan growth, especially in retail banking, is positively influencing net interest margins. The 13.7% rise in average earning asset was led by a 17.6% rise in average loans. The real rate earned over average earning assets increased 160 basis points to 8.6% and the real rate earned over average loans increased 150 basis points to 9.2% in 1Q 2006. Loans represented 78.6% of average interest earnings assets in 1Q 2006 compared to 75.9% in 1Q 2005.

 

---

     3 For analysis purposes results from foreign exchange transactions, which consist mainly of the results of forward contracts that hedge foreign currency positions, has been included in the calculation of the net financial income and net financial margin. Pursuant to Chilean GAAP, Santander-Chile must include as net interest income the gain or loss in book value of dollar-indexed interest earning assets and liabilities. Therefore, an appreciation of the peso may result in a negative nominal or real rate earned or paid over these assets and liabilities, distorting net interest income and net interest margins. At the same time and pursuant to Chilean GAAP, the Bank must report the results of forward contracts, which hedge foreign currencies as foreign currency transactions. Since the foreign currency gap is limited, the results from foreign exchange transactions are mainly the results of our hedging policies. For this reason and for analysis purpose only we include the results of foreign trade transactions when analyzing net financial income.

8

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

---

-	Rising short-term rates and re-pricing of time deposits. Short-term interest rate movements placed pressure on the net interest margin in 1Q 2006. The overnight interbank rate, a reference rate for time deposits increased 23 bp. to 4.59% between 4Q 2005 and 1Q 2006. This resulted in higher funding costs due to the re-pricing of short-term time deposits and a deterioration of the funding mix. The ratio of average equity plus non-interest bearing demand deposits over average earning assets decreased from 24.6% in 1Q 2005 to 22.5% in 1Q 2006 as asset growth has been funded mainly through time deposits. This was partially offset by the increase in spread earned over free-funds (non-interest bearing demand deposits and equity) which increases with higher short-term rates. The spread earned over free funds increased 70 basis points in 1Q 2006 compared to 1Q 2005 reaching 3.88%.
-	Unwinding of a cross currency swap. In 1Q 2006 the Bank unwound a cross-currency swap and recognized a one-time gain of Ch$7,100 million in the quarter from this operation.

The 6.6% QoQ decrease in net financial income was mainly due to the negative inflation rate in 1Q 2006 compared to the positive rate in 4Q 2005. This had a negative effect over margins due to the negative gap between assets and liabilities denominated in Unidades de Fomento (UF, an inflation-linked currency). The UF gap results from the Bank’s investment in liquid, low risk financial investments denominated in UF funded through deposits denominated in nominal pesos. This is partially offset by the positive results from price level restatement in 1Q 2006 compared to the loss in price level restatement recognized in 4Q 2005. Chilean CPI is not adjusted for seasonality and in the 1Q of each year prices of perishable goods usually fall. Margins also fall on a sequential basis between 4Q and 1Q since 1Q has 2 business days less, which signifies approximately Ch$3,000 million less in net interest income.

9

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

---

PROVISION FOR LOAN LOSSES

The PDL ratio falls to 0.93% and the expected loss of the loan portfolio reaches 1.36%

Provision for loan losses		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Gross provisions		(1,041	)	+3,271		+337		--		--
Charge-offs		(34,743	)	(34,066	)	(25,377	)	36.9	%	2.0	%
Total provisions and charge-offs		(35,784	)	(30,795	)	(25,040	)	42.9	%	16.2	%
Loan loss recoveries		+10,313		+14,160		+8,045		28.2	%	(27.2	%)
Total provisions, net of recoveries		(25,471	)	(16,635	)	(16,995	)	49.9	%	53.1	%
Total loans		10,736,973		10,144,273		9,112,371		17.8	%	5.8	%
Total reserves		149,112		147,866		174,006		(14.3	%)	0.8	%
Reserve for loan losses (RLL)		145,729		144,158		169,353		(13.9	%)	1.1	%
Other reserves		3,383		3,708		4,653		(27.3	%)	(8.8	%)
Past due loans* (PDL)		100,382		106,540		125,367		(19.9	%)	(5.8	%)
Gross provision expense / loans		1.33	%	1.21	%	1.10	%
Net provision expense / loans		0.95	%	0.66	%	0.75	%
PDL/Total loans		0.93	%	1.05	%	1.38	%
Expected loss (RLL / loans)		1.36	%	1.42	%	1.86	%
RLL/Past due loans		145.2	%	135.3	%	135.1	%

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

Total provisions, net of recoveries increased 49.9% YoY and 53.1% QoQ. The ratio of net provision expense over total loans reached 0.95% compared to 0.75% in 1Q 2005 and 0.66% in 4Q 2005. This rise in provision expenses was mainly due to the increase in consumer lending and a seasonal increase in short-term non-performance (1-89 days) in the consumer portfolio. Short-term non-performance swelled this year more than in previous years as an unusually high number of clients took their vacations after the second round of the presidential elections held on January 15. According to Superintendence of Banks guidelines banks must provision 1% of a consumer loans that has at least one installment 1 to 30 days overdue and must provision 20% of a consumer loans with at least one installment that is 31-60 days overdue. This situation began to normalize in March as people returned and paid their past due installments.

Despite this transitory effect, asset quality remained sound, in line with the evolution of the economy. The ratio of required reserves over total loans ratio, which measures the expected loss of the loan portfolio, reached 1.36% as of March 2006 compared to 1.42% as of December 2005 and 1.86% in 1Q 2005. Past due loans in 1Q 2006 decreased 5.8% QoQ and 19.9% YoY. The ratio of past due loans to total loans reached 0.93% in 1Q 2006 compared to 1.05% in 4Q 2005 and 1.38% in 1Q 2005. Going forward and as stated in last quarters earnings report, the Bank expects asset quality to remain sound, but as the retail banking portfolio increases the ratio of provision expenses to total loans should rise compared to 2005.

10

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

---

FEE INCOME

Growth in client base and product usage boosts fee income

Fee income		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Checking accounts		9,628		9,425		7,754		24.2	%	2.2	%
Administration & collection of insurance policies		6,349		5,612		4,061		56.3	%	13.1	%
Credit cards		4,494		4,133		3,174		41.6	%	8.7	%
Mutual fund services		4,467		4,967		4,051		10.3	%	(10.1	%)
Automatic teller cards		3,714		3,822		3,205		15.9	%	(2.8	%)
Lines of credit		2,648		2,636		1,500		76.5	%	0.5	%
Insurance brokerage		2,167		2,203		1,720		26.0	%	(1.6	%)
Other product and services		4,864		6,785		5,383		(9.6	%)	(28.3	%)
Total fee income, net		38,330		39,584		30,847		24.3	%	(3.2	%)
Fees / operating expense		55.6	%	52.3	%	47.8	%

Net fee income increased 24.3% YoY driven by a rise in clients and product usage. The Bank continues to successfully expand its client base and product usage, especially in retail banking. The total number of clients increased 11.9% YoY to 2.3 million. The amount of middle-upper income individual clients that are cross-sold (a client with a checking account and that uses three other products increased) increased 29.0% YoY. The amount of SME clients that are cross-sold increased 16.7%. In Santander Banefe, the amount of cross-sold clients (clients with at least one transactional product and that uses at least 2 or more other products) rose 44.2% YoY.

11

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

---

Greater product usage has boosted fee income. In 1Q 2006 fees from checking accounts increased 24.2% and fees from lines of credit rose 76.5% YoY. Market share in checking accounts reached 25.6% as of February 2006 compared to 23.6% as of February 2005, the latest figure available. In the last twelve months, Santander Santiago has increased its checking account base by 17.4%, twice the rate of growth of the banking system that grew 8.3% in the same period.

Credit card fees increased 41.6% YoY. The Bank is also consolidating its leading position in the credit card market. According to the latest information published by Transbank, as of March 2006, Santander Santiago’s credit cards were growing 19.5% YoY. Total purchases with Santander Santiago credit cards increased 16.2% YoY.

ATM fees increased 15.9% in 1Q 2006 compared to the same period of 2005. This rise is in line with the 17.5% YoY growth of the Bank’s ATM network, which totals 1,395 machines. Fees from mutual fund asset management increased 10.3% YoY in 1Q 2006. Assets under management increased 16.3% YoY driving fee growth in this product. Insurance brokerage fees increased 26.0% YoY as the Bank continues to successfully cross-sell its client base with innovative insurance products. The 56.3% rise in the administration and collection of insurance policies is directly related to the rise in mortgage lending that requires insurance.

The 3.2% decrease in fees QoQ is mainly due to seasonal factors.

12

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

---

OPERATING EXPENSES AND EFFICIENCY

Efficiency level reaches a record level of 38.3%

Operating Expenses		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Personnel expenses		34,005		36,774		33,509		1.5	%	(7.5	%)
Administrative expenses		25,836		27,425		22,263		16.0	%	(5.8	%)
Depreciation and amortization		9,076		11,562		8,726		4.0	%	(21.5	%)
Operating expenses		68,917		75,761		64,498		6.9	%	(21.5	%)
Efficiency ratio*		38.3	%	45.6	%	41.8	%

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

Costs remain under control. In 1Q 2006 the efficiency ratio reached 38.3% compared to 41.8% in 1Q 2005. The Bank has the lowest efficiency ratio among the leading banks in Chile and Latin America.

Operating expenses increased 6.9% YoY in 1Q 2006. Despite the increase in commercial activity, the Bank continues to improve productivity, which has help to fund the increase in investments in the branch network. Personnel expense increased 1.5% YoY, in line with the 2.4% rise in headcount in the period.

The 16.0% YoY increase in administrative expenses is directly linked to the higher commercial activities and the larger distribution network. In 1Q 2006 the Bank continued expanding its distribution network in order to sustain current commercial growth levels, especially in retail banking. Nine branches were opened in 1Q 2006 bringing the total to 361 branches, representing a YoY increase of 14.2% . Santander Santiago has the largest branch and ATM network in Chile.

The 9.0% QoQ decrease in operating expenses was mainly due to seasonal factors.

OTHER OPERATING INCOME

Other operating income*		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Net gain from trading and mark-to-
market of securities		8,051		(16,596	)	11,446		(29.7	%)	--
Other operating results, net		(7,742	)	(7,895	)	(5,962	)	29.4	%	(1.9	%)

* The gains (loss) from foreign exchange transactions are included in the analysis of net financial income (See Net Financial Income)

Medium and long-term interest rates fell in 1Q 2006 after rising sharply in 4Q 2005. The yield on the Central Bank’s 10-year bond decreased 32 basis points in the quarter. This had a positive effect on the net gains from trading and mark-to-market of securities, which totaled Ch$8,051 million.

13

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

---

Other operating results, net totaled a loss of Ch$7,742 million, increasing 29.4% YoY. This line tem mainly includes the variable sales force expenses. When a bank product is sold, the fee earned by the sales force is recognized on an accrued basis according to the life of the product. Total sales force expenses reached Ch$4,042 million in 1Q 2006.

OTHER INCOME/EXPENSES, PRICE LEVEL RESTATEMENT AND INCOME TAX

Other Income and Expenses		Quarter						Change %
(Ch$ million)		1Q 2006		4Q 2005		1Q 2005		1Q 2006/2005		1Q 2006 / 4Q 2005
Non-operating income, net		(11,015	)	141		(12,596	)	(12.6	%)	--
Income attributable to investments in
other companies		240		74		214		12.1	%	224.3	%
Losses attributable to minority interest		(65	)	63		(53	)	22.6	%	--
Total net non-operating results		(10,840	)	278		(12,435	)	(12.8	%)	--
Price level restatement		2,780		(6,179	)	5,964		(53.4	%)	--
Income tax		(12,877	)	(10,661	)	(12,555	)	2.6	%	20.8	%

In 1Q 2006 net non-operating results totaled a loss of Ch$10,840 million compared to a loss of Ch$12,435 million in 1Q 2005. This lower loss was mainly due to a decrease in results related to repossessed assets partially offset by higher provisions for non-credit related contingencies.

The 53.4% decline in the YoY gain from price level restatement in was due to the differences in inflation rate in the quarters being analyzed. In 1Q 2006 inflation reached -0.33% compared to -0.68% in 1Q 2005. The Bank must adjust its capital, fixed assets and other assets for the variations in price levels. Since the Bank's capital is larger than the sum of fixed and other assets, when inflation is negative, the Bank usually records a gain from price restatement. In 4Q 2005 the positive inflation rate resulted in a negative level of price level restatement.

14

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

---

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

Shareholders’ equity		Quarter ended,						% Change
(Ch$ million)		March 31, 2006		Dec. 31, 2005		March 31, 2005		March 2006/2005		March 06 / Dec. 05
Total capital and reserves		1,087,152		842,122		1,020,815		6.5	%	29.1	%
Net Income		64,434		239,710		53,960		19.4	%	(73.1	%)
Total shareholders’ equity		1,151,586		1,081,832		1,074,775		7.1	%	6.4	%
Return on average equity (ROAE)		22.8	%	21.7	%	20.5	%

Shareholders’ equity totaled Ch$1,151,586 million as of March 31, 2006. The Bank’s ROAE in 1Q 2006, reached 22.8% compared to 20.5% in 1Q 2005 and 21.7% in 4Q 2005.

The Bank’s BIS ratio as of March 31, 2006 reached 14.3% with a Tier I ratio of 10.8% . Banco Santander Santiago held its annual Ordinary Shareholders’ Meeting on April 25, 2006. During the meeting, a dividend of Ch$ 155,811 million (Ch$0.82682216 per share) was approved, corresponding to 65% of 2005 net income. Immediately following the payment of the dividend the Bank’s BIS ratio should be approximately 12.9% and the Tier I ratio 9.3% .

Capital Adequacy		Quarter ended,						% Change
(Ch$ million)		March 31, 2006		Dec. 31, 2005		March 31, 2005		March 2006/2005		March 06 / Dec. 05
Tier I		1,087,152		842,121		1,020,815		6.5	%	29.1	%
Tier II		361,713		364,299		408,190		(11.4	%)	(0.7	%)
Regulatory capital		1,448,865		1,206,421		1,429,005		1.4	%	20.1	%
Risk weighted assets		10,107,478		9,362,393		8,841,111		14.3	%	8.0	%
Tier I		10.8	%	9.0	%	11.5	%
BIS ratio		14.3	%	12.9	%	16.2	%
		(12.9% post
		dividend)

INSTITUTIONAL BACKGROUND

As per latest public records published by the Superintendency of Banks for March 2006, Banco Santander Santiago was the largest bank in Chile in terms of loans and deposits. The Bank has the highest credit ratings among all non-publicly owned Latin American companies with an A rating from Standard and Poor’s, A by Fitch and a Baa1 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 Banco Santander Central Hispano, S.A., which directly and indirectly owns 83.94% of Banco Santander Santiago.

BANCO SANTANDER CENTRAL HISPANO

Santander (SAN.MC, STD.N) Is the largest bank in the Euro Zone by market capitalization and one of the largest worldwide. Founded in 1857, Santander has €815,000 million in assets and €975,000 million in managed funds, 66 million customers, 10.300 offices and a presence in 40 countries. It is

15

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

---

the largest financial group in Spain and Latin America, and is a major player elsewhere in Europe, including the United Kingdom through its Abbey subsidiary and Portugal, where it is the third largest banking group. Through Santander Consumer, it also operates a leading consumer finance franchise in Germany, Italy, Spain and nine other European countries. In the first quarter of 2006, Santander recorded €1,493 million in net attributable profits, 26% more than in the same period of the previous year.

In Latin America, Santander manages over US$200 billion in business volumes (loans, deposits, mutual funds and pension funds) through 4,170 offices. In the first quarter of 2006, Santander recorded in Latin America US$743 million in net attributable income, 35% higher than in the prior year.

CONTACT INFORMATION

Robert Moreno
Manager

Investor Relations Department
Banco Santander Santiago
Bandera 140 Piso 19,
Santiago,
Chile

Tel: (562) 320-8284
Fax: (562) 671-6554
Email: rmorenoh@santandersantiago.cl
Website: www.santandersantiago.cl

16

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

---

Item 2

 

	BANCO SANTANDER - CHILE, AND SUBSIDIARIES
	UNAUDITED CONSOLIDATED BALANCE SHEETS
	(In millions of nominal Chilean pesos)

		31-Mar			31-Mar			31-Dec			31-Mar			% Change			% Change
		2005			2006			2005			2005			March 2006 / 2005			March 2006 / Dec. 2005
		US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions
ASSETS
Cash and due from banks
Noninterest bearing		656,358			346,360			1,013,857			750,469			(53.8	%)		(65.8	%)
Interbank deposits-interest bearing		1,837,396			969,594			211,105			590,946			64.1	%		359.3	%
Total cash and due from banks		2,493,754			1,315,954			1,224,962			1,341,415			(1.9	%)		7.4	%
Financial investments
Government securities		929,513			490,504			460,181			773,721			(36.6	%)		6.6	%
Investments purchased under agreements to resell		62,604			33,036			23,120			25,616			29.0	%		42.9	%
Other financial investments		1,663,402			877,777			674,976			423,653			107.2	%		30.0	%
Investment collateral under agreements to repurchase		186,979			98,669			91,218			523,919			(81.2	%)		8.2	%
Total financial investments		2,842,498			1,499,986			1,249,496			1,746,909			(14.1	%)		20.0	%
Loans, net
Commercial loans		7,500,972			3,958,263			3,655,101			3,317,067			19.3	%		8.3	%
Consumer loans		2,805,297			1,480,355			1,392,012			1,156,130			28.0	%		6.3	%
Mortgage loans (Financed with mortgage bonds)		1,109,170			585,309			634,723			810,688			(27.8	%)		(7.8	%)
Foreign trade loans		1,117,129			589,509			511,756			588,552			0.2	%		15.2	%
Interbank loans		371,040			195,798			194,652			175,814			11.4	%		0.6	%
Leasing		1,316,530			694,733			663,862			536,217			29.6	%		4.7	%
Other outstanding loans		4,167,205			2,199,034			2,056,155			1,533,335			43.4	%		6.9	%
Past due loans		190,226			100,382			106,540			125,367			(19.9	%)		(5.8	%)
Contingent loans		1,769,168			933,590			929,472			869,201			7.4	%		0.4	%
Reserves		(282,570	)		(149,112	)		(147,866	)		(174,006	)		(14.3	%)		0.8	%
Total loans, net		20,064,167			10,587,861			9,996,408			8,938,365			18.5	%		5.9	%
Other assets
Bank premises and equipment		415,975			219,510			221,375			208,019			5.5	%		(0.8	%)
Foreclosed assets		26,180			13,815			17,948			26,367			(47.6	%)		(23.0	%)
Investments in other companies		12,507			6,600			6,696			4,967			32.9	%		(1.4	%)
Assets to be leased		45,977			24,262			32,015			14,075			72.4	%		(24.2	%)
Other		976,460			515,278			347,922			583,126			(11.6	%)		48.1	%
Total other assets		1,477,099			779,465			625,956			836,554			(6.8	%)		24.5	%
TOTAL ASSETS		26,877,518			14,183,266			13,096,821			12,863,243			10.3	%		8.3	%

---

 

	BANCO SANTANDER - CHILE, AND SUBSIDIARIES
	UNAUDITED CONSOLIDATED BALANCE SHEETS
	(In millions of nominal Chilean pesos)

		31-Mar			31-Mar			31-Dec			31-Mar			% Change			% Change
		2005			2006			2005			2005			March 2006 / 2005			March 2006 / Dec. 2005
		US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Current accounts		2,807,326			1,481,426			1,455,924			1,346,977			10.0	%		1.8	%
Bankers drafts and other deposits		1,395,683			736,502			712,886			1,165,535			(36.8	%)		3.3	%
Total non-interest bearing deposits		4,203,009			2,217,928			2,168,810			2,512,512			(11.7	%)		2.3	%
Savings accounts and time deposits		11,870,517			6,264,072			5,906,711			4,603,981			36.1	%		6.1	%
Total deposits		16,073,526			8,482,000			8,075,522			7,116,493			19.2	%		5.0	%
Other interest bearing liabilities
Banco Central de Chile borrowings
Credit lines for renegotiation of loans		11,597			6,120			6,655			8,333			(26.6	%)		(8.0	%)
Other Banco Central borrowings		235,571			124,311			173,206			215,268			(42.3	%)		(28.2	%)
Total Banco Central borrowings		247,168			130,431			179,860			223,601			(41.7	%)		(27.5	%)
Investments sold under agreements to repurchase		182,769			96,447			49,779			474,004			(79.7	%)		93.8	%
Mortgage finance bonds		1,177,694			621,469			668,961			861,145			(27.8	%)		(7.1	%)
Other borrowings
Bonds		849,373			448,214			415,243			364,103			23.1	%		7.9	%
Subordinated bonds		740,489			390,756			385,751			550,596			(29.0	%)		1.3	%
Borrowings from domestic financial institutions		0			0			2,528			746			(100.0	%)		(100.0	%)
Foreign borrowings		2,933,294			1,547,899			1,098,246			829,959			86.5	%		40.9	%
Other obligations		89,864			47,421			42,092			43,760			8.4	%		12.7	%
Total other borrowings		4,613,020			2,434,290			1,943,859			1,789,164			36.1	%		25.2	%
Total other interest bearing liabilities		6,220,651			3,282,637			2,842,460			3,347,914			(1.9	%)		15.5	%
Other liabilities
Contingent liabilities		1,771,146			934,634			931,318			870,383			7.4	%		0.4	%
Other		627,044			330,891			164,225			452,361			(26.9	%)		101.5	%
Minority interest		2,877			1,518			1,464			1,317			15.3	%		3.7	%
Total other liabilities		2,401,067			1,267,043			1,097,007			1,324,061			(4.3	%)		15.5	%
Shareholders' equity
Capital and reserves		2,060,171			1,087,152			842,122			1,020,815			6.5	%		29.1	%
Income for the year		122,103			64,434			239,710			53,960			19.4	%		(73.1	%)
Total shareholders' equity		2,182,274			1,151,586			1,081,832			1,074,775			7.1	%		6.4	%
TOTAL LIABILITIES AND
SHAREHOLDER'S EQUITY		26,877,518			14,183,266			13,096,821			12,863,243			10.3	%		8.3	%

---

    

	BANCO SANTANDER CHILE
	QUARTERLY INCOME STATEMENTS
	Millions of nominal Chilean pesos

		IQ 2006			IQ 2006			IVQ 2005			IQ 2005			% Change			% Change
		US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions			IQ 2006/2005			IQ 2006 / IVQ 2005
Interest income and expense
Interest income		422,644			223,029			293,199			165,014			35.2	%		(23.9	%)
Interest expense		(184,300	)		(97,255	)		(143,272	)		(49,151	)		97.9	%		(32.1	%)
Net interest income		238,344			125,774			149,927			115,863			8.6	%		(16.1	%)
Foreign exchange transactions, net		29,081			15,346			1,154			2,285			571.6	%		1229.8	%
Net financial income		267,425			141,120			151,081			118,148			19.4	%		(6.6	%)
Provision for loan losses		(48,268	)		(25,471	)		(16,635	)		(16,995	)		49.9	%		53.1	%
Fees and income from services
Fees and other services income		88,194			46,540			48,314			37,735			23.3	%		(3.7	%)
Other services expense		(15,558	)		(8,210	)		(8,730	)		(6,888	)		19.2	%		(6.0	%)
Total fees and income from services, net		72,636			38,330			39,584			30,847			24.3	%		(3.2	%)
Other operating income, net
Net gain (loss) from trading and mark-to-market		15,257			8,051			(16,596	)		11,446			(29.7	%)		--
Other, net		(14,671	)		(7,742	)		(7,895	)		(5,962	)		29.9	%		(1.9	%)
Total other operating income,net		586			309			(24,491	)		5,484			(94.4	%)		--
Operating expenses
Personnel salaries and expenses		(64,440	)		(34,005	)		(36,774	)		(33,509	)		1.5	%		(7.5	%)
Administrative and other expenses		(48,960	)		(25,836	)		(27,425	)		(22,263	)		16.0	%		(5.8	%)
Depreciation and amortization		(17,199	)		(9,076	)		(11,562	)		(8,726	)		4.0	%		(21.5	%)
Total operating expenses		(130,599	)		(68,917	)		(75,761	)		(64,498	)		6.9	%		(9.0	%)
Other income and expenses
Nonoperating income, net		(20,874	)		(11,015	)		141			(12,596	)		(12.6	%)		--
Income attributable to investments in other companies		455			240			74			214			12.1	%		224.3	%
Losses attributable to minority interest		(123	)		(65	)		63			(53	)		22.6	%		--
Total other income and expenses		(20,542	)		(10,840	)		278			(12,435	)		(12.8	%)		--
Gain (loss) from price-level restatement		5,268			2,780			(6,179	)		5,964			(53.4	%)		--
Income before income taxes		146,506			77,311			67,877			66,515			16.2	%		13.9	%
Income taxes		(24,402	)		(12,877	)		(10,661	)		(12,555	)		2.6	%		20.8	%
Net income		122,103			64,434			57,216			53,960			19.4	%		12.6	%

---

	Financial Ratios

		1Q04			2Q04			3Q04			4Q04			1Q05			2Q05			3Q05			4Q05			1Q06
Profitability
Net interest margin*		4.3	%		4.8	%		4.5	%		4.7	%		4.2	%		4.8	%		4.6	%		4.9	%		4.3	%
Net fees / operating expenses		43.2	%		41.8	%		44.0	%		50.9	%		47.8	%		47.5	%		50.3	%		52.3	%		55.6	%
Return on average equity		19.7	%		17.1	%		22.7	%		21.5	%		20.5	%		25.7	%		26.8	%		21.7	%		22.8	%
Capital ratio
BIS		16.7	%		13.6	%		13.1	%		14.9	%		16.2	%		13.4	%		13.2	%		12.9	%		14.3	%
Earnings per Share
Net income (nominal Ch$mn)		51,277			40,067			53,515			53,935			53,960			62,101			66,433			57,216			64,434
Net income per share (Nominal Ch$)		0.27			0.21			0.28			0.29			0.29			0.33			0.35			0.30			0.34
Net income per ADS (US$)		0.45			0.35			0.49			0.53			0.51			0.59			0.69			0.61			0.67
Shares outstanding in million		188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1			188,446.1
Credit Quality
Past due loans/total loans		1.98	%		1.73	%		1.58	%		1.52	%		1.38	%		1.29	%		1.17	%		1.05	%		0.93	%
Reserves for loan losses/past due loans		104.8	%		110.7	%		120.3	%		128.5	%		135.1	%		137.6	%		129.4	%		135.3	%		145.2	%
Efficiency
Operating expenses/operating income		43.2	%		46.9	%		40.4	%		46.0	%		41.8	%		39.1	%		39.9	%		45.6	%		38.3	%
Market information (period-end)
Stock price		15.9			16.2			16.3			18.1			18.6			17.9			22.3			21.6			22.05
ADR price		26.9			26.7			27.94			33.86			33.13			32.3			43.87			44.6			43.6
Market capitalization (US$mn)		4,879			4,843			5,068			6,141			6,009			5,858			7,957			8,089			7,908
Network
ATMs		1,027			1,050			1,050			1,190			1,187			1,225			1,322			1,422			1,395
Branches		341			346			351			311			316			327			335			352			361
Other Data
Exchange rate (Ch/US$) (period-end)		623.21			636.59			606.96			559.83			586.45			578.92			533.69			514.21			527.7

* Net interest margin including results of foreign exchange transactions

---

Loans by client segment  Ch$ million		Dec-04		Mar-05		Jun-05		Sep-05		Dec-05		Mar-06		% Change March 2006 / 2005			% Change March 06 / Dec. 05
Banefe		396,640		416,080		434,742		459,058		491,424		514,790		23.7	%		4.8	%
Middle-upper income		2,967,258		3,129,214		3,305,448		3,521,901		3,711,684		3,856,865		23.3	%		3.9	%
Total individuals		3,363,899		3,545,293		3,740,190		3,980,959		4,203,108		4,371,655		23.3	%		4.0	%
SMEs		1,070,559		1,143,571		1,223,618		1,317,681		1,402,332		1,494,802		30.7	%		6.6	%
Total RETAIL		4,434,457		4,688,864		4,963,808		5,298,640		5,605,440		5,866,457		25.1	%		4.7	%
Institutional lending		149,625		157,546		154,948		175,508		181,999		183,052		16.2	%		0.6	%
Middle-market & real estate		1,721,460		1,855,576		1,899,395		1,943,136		1,963,468		2,125,214		14.5	%		8.2	%
Large Corporations		1,313,539		1,368,476		1,293,519		1,267,076		1,261,544		1,427,656		4.3	%		13.2	%
Excludes contingent loans

---

Item 3

Banco Santander - Chile and Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS AT March 31

In Ch$ million as of March 31, 2006

ASSETS

		2006 Ch$ (Millions)			2005 Ch$ (Millions)
CASH AND DUE FROM BANKS		1,315,954.3			1,396,144.2
LOANS:
Commercial loans		3,958,262.9			3,452,402.9
Foreign trade loans		589,509.0			612,564.9
Consumer loans		1,480,354.9			1,203,300.4
Mortgage loans		585,309.2			843,763.8
Lease contracts		694,733.3			558,095.0
Contingent loans		933,589.9			904,664.7
Other outstanding loans		2,199,033.7			1,595,895.5
Past-due loans		100,382.4			130,481.5
Total loans		10,541,175.3			9,301,168.7
Reserves for loan losses		(149,112.0	)		(181,105.3	)
Total loans, net		10,392,063.3			9,120,063.4
OTHER LOANS OPERATIONS:
Interbank loans		195,797.8			182,987.4
Investments purchased under agreements to resell		33,036.1			26,661.3
Total other loans operations		228,833.9			209,648.7
INVESTMENTS:
Government securities		490,503.5			805,288.7
Other financial investments		877,777.2			440,938.0
Investment collateral under agreements to repurchase		98,668.6			545,294.6
Assets for leasing		24,262.4			14,648.7
Assets received or awarded in lieu of payment		13,815.1			27,442.4
Other not financial investments		249.7			214.6
Total investments		1,505,276.5			1,833,827.0
OTHER ASSETS:		515,028.0			606,703.8
FIXED ASSETS:
Bank premises and equipment		219,509.6			216,506.4
Investments in other companies		6,599.5			5,169.9
Total fixed assets		226,109.1			221,676.3
TOTAL ASSETS		14,183,265.1			13,388,063.4

---

CONSOLIDATED FINANCIAL STATEMENTS AT March 31,

In Ch$ million as of March 31, 2006

LIABILITIES AND SHAREHOLDERS’ EQUITY

		2006 Ch$ (Millions)			2005 Ch$ (Millions)
DEPOSITS AND OTHER LIABILITIES:
Current accounts		1,481,425.6			1,401,933.7
Savings accounts and time deposits		6,308,924.0			4,821,122.6
Bankers drafts and other deposits		691,649.9			1,183,789.6
Investments sold under agreements to repurchase		96,446.9			493,343.3
Mortgage finance bonds		621,469.0			896,280.1
Contingent liabilities		934,633.6			905,894.6
Total deposits and other liabilities		10,134,549.0			9,702,363.9
BONDS:
Bonds		448,214.0			378,958.7
Subordinated bonds		390,755.5			573,060.7
Total bonds		838,969.5			952,019.4
BORROWINGS FROM BANCO CENTRAL DE CHILE
AND OTHER FINANCIAL INSTITUTIONS:
Chilean Central Bank credit lines for
renegotiations of loans		6,119.9			8,672.6
Other Central Bank borrowings		124,311.3			224,050.8
Borrowings from domestic financial institutions		--			777.0
Foreign borrowings		1,547,899.2			863,821.4
Other obligations		47,420.9			45,544.9
Total borrowings from financial institutions		1,725,751.3			1,142,866.7
OTHER LIABILITIES:		330,890.9			470,814.6
Total liabilities		13,030,160.7			12,268,064.6
MINORITY INTEREST		1,518.3			1,372.7
SHAREHOLDERS’ EQUITY:
Capital and reserves		1,093,302.4			1,059,916.8
Fluctuations of financial investments		(6,150.5	)		2,547.3
Income for the period		64,434.2			56,162.0
Total shareholders’ equity, net		1,151,586.1			1,118,626.1
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		14,183,265.1			13,388,063.4

---

BANCO SANTANDER - CHILE AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT

For the periods between January 1, and March 31,

In Ch$ million as of March 31, 2006

		2006 Ch$ (Millions)			2005 Ch$ (Millions)
OPERATING INCOME
Interest income		223,029.0			171,746.4
Gain from trading and brokerage activities		15,882.3			23,711.1
Fees income		46,539.6			39,274.8
Gains from foreign exchange transactions		15,346.2			2,452.2
Other operating income		1,563.4			193.0
Total operating income		302,360.5			237,377.5
Less:
Interest expense		(97,255.0	)		(51,156.5	)
Losses from trading and brokerage activities		(7,417.2	)		(11,798.4	)
Fees expenses		(8,209.6	)		(7,168.5	)
Losses from foreign exchange transactions		--			(74.0	)
Other operating expenses		(9,719.5	)		(6,397.6	)
Gross margin		179,759.2			160,782.5
Personnel salaries and expenses		(34,005.1	)		(34,875.8	)
Administrative expenses		(25,835.7	)		(23,171.4	)
Depreciation and amortization		(9,076.0	)		(9,082.0	)
Net margin		110,842.4			93,653.3
Reserve for loan losses		(25,470.7	)		(17,688.2	)
Operating income		85,371.7			75,965.1
OTHER INCOME AND EXPENSES:
Non-operating income		4,076.3			15.3
Non-operating expenses		(15,092.3	)		(17,649.1	)
Income attributable to investments in other companies		239.8			4,742.0
Loss from price-level restatement		2,780.5			6,206.8
Income before income taxes		77,376.0			69,280.1
Income taxes		(12,877.3	)		(13,066.7	)
Net income after taxes		64,498.7			56,213.4
Minority interests		(64.5	)		(51.4	)
NET INCOME		64,434.2			56,162.0

ROBERTO JARA CABELLO		OSCAR VON CHRISMAR CARVAJAL
Accounting Manager		General Manager

---

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
Date:	June 14, 2006	By:		/s/ Gonzalo Romero
				Name:	Gonzalo Romero
				Title:	General Counsel