Edgar Filing: BANCO SANTANDER CHILE

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 May, 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 x

Form 40-F o

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 o

No x

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 o

No x

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 o

No x

If “Yes” is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): N/A

Banco Santander Chile Announces

First Quarter 2007 Earnings

·	In the first quarter of 2007 net income totaled Ch$72,189 million (Ch$0.38 per share and US$0.74/ADR), increasing 12.0% YoY and 18.6% QoQ.

·	Better earnings mix enhances margins. Net interest income increased 23.8% YoY. Net interest margin expanded 50 basis points to 4.4% in 1Q 2007 compared to 1Q 2006 and 40 basis points compared to 4Q 2006.

·	Net fee income increased 17.7% YoY in 1Q 2007 driven by a rise in clients, cross selling and product usage.

·	Solid growth of client base and distribution network. The total number of clients increased 12.0% YoY to 2.52 million and the Bank opened 13 new branches in 1Q 2007, expanding its branch network to 410 offices.

·	Total loans increase 3.6% QoQ and 13.7% YoY. Consumer loans increased 26.3% YoY while residential mortgage loans grew 21.5% and lending to SMEs increased 24.7%.

·	Efficiency ratio reaches 37.9% in 1Q 2007. The Bank continues to improve productivity, which has helped to finance the investments in the branch network.

Coverage of past due loans reached 204%. In 1Q 2007, the Bank continued to improve its provisioning model for consumer lending. Net provisions expenses grew 42.6% YoY. As a result, the past due loan ratio as of March 2007 reached 0.80% down from 0.93% as of March 2006 and flat compared to 4Q 2006.

·	Annual dividend increased 19.1%. Banco Santander Chile held its annual Ordinary Shareholders’ Meeting on April 24, 2007. During the meeting, a dividend Ch$0.98504643 per share was approved, corresponding to 65% of 2006 net income and 19.1% higher than the dividend paid in 2006.

·	The Bank’s credit ratings upgraded by Moody’s. Senior foreign currency debt rating was raised by one notch to Aa3 from A1 and the subordinated foreign currency debt rating was raised by two notches to Aa3 from A2.

Investor Relations Department

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

email: rmorenoh@santander.cl

Santiago, Chile, May 2, 2007. Banco Santander Chile (NYSE: SAN) announced today its unaudited results for the first quarter of 2007. These results are reported on a consolidated basis in accordance with Chilean GAAP¹^,²in nominal Chilean pesos.

In the first quarter of 2007 net income totaled Ch$72,189 million (Ch$0.38 per share and US$0.74/ADR), increasing 12.0% compared to 1Q 2006 (from now on YoY) and 18.6% compared to 4Q 2006 (from now on QoQ). Core revenues (net financial income and fees) totaled Ch$201,001 million and increased 22.4% YoY and 12.2% QoQ, as the Bank continued to show strong results in its retail banking business.

Net interest income increased 23.8% YoY and 13.9% QoQ driven by solid loan growth and higher margins. In the quarter, total loans increased 3.6% QoQ and 13.7% YoY. Retail lending - which includes lending to individuals and SMEs - increased 3.3% QoQ and 20.7% YoY. Consumer loans expanded 3.8% QoQ and 26.3% YoY while residential mortgage lending increased 4.1% QoQ and 21.5% YoY. As a result of the better earnings mix, the interest margin increased 50 basis points to 4.4% compared to 1Q 2006.

Net fee income increased 17.7% YoY and 6.9% QoQ. The Bank continues to expand its client base, cross-selling ratios and product usage, especially in retail banking. The total number of clients increased 12.0% YoY to 2.52 million. 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 27.7% YoY as of March 2007. In Santander Banefe, the amount of cross-sold clients (clients that uses at least 2 or more other products) rose 17.5% YoY as of March 2007.

Coverage of past due loans reached 204%. In 1Q 2007, the Bank continued to improve its provisioning models. Net provisions expenses grew 42.6% YoY. As a result, the past due loan ratio as of March 2007 reached 0.80% down from 0.93% as of March 2006 and flat compared to 4Q 2006.

Costs remain under control. Operating expenses increased 10.4% YoY in 1Q 2007 mainly due to higher commercial activities and the larger distribution network. The Bank continues to improve productivity, which has helped to fund the investments in the branch network. In 1Q 2007 the efficiency ratio reached 37.9% compared to 38.3% in 1Q 2006. The Bank has the lowest efficiency ratio among the leading banks in Chile and Latin America.

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 as of March 31, 2007 was Ch$539.37 per US$ dollar. All figures presented are in nominal terms. Historical figures are not adjusted by inflation.

Banco Santander Chile	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006 (reclassified)			1Q 07/ 1Q 06			1Q 07 / 4Q06
Net interest income		155,892			136,899			125,889			23.8	%		13.9	%
Fees and income from services		45,109			42,205			38,330			17.7	%		6.9	%
Core revenues		201,001			179,104			164,219			22.4	%		12.2	%
Total provisions, net of recoveries		(36,331	)		(39,514	)		(25,471	)		42.6	%		(8.1	%)
Gains losses on financial transactions		10,230			18,312			23,310			(56.1	%)		(44.1	%)
Other operating income, net		(10,537	)		(7,869	)		(7,770	)		35.6	%		33.9	%
Operating expenses		76,101			88,061			68,917			10.4	%		(13.6	%)
Income before income taxes		86,758			73,384			77,311			12.2	%		18.2	%
Net income		72,189			60,868			64,434			12.0	%		18.6	%
Net income/share (Ch$)		0.38			0.32			0.34			12.0	%		18.6	%
Net income/ADR (US$)¹		0.74			0.63			0.67			9.6	%		17.5	%
Total loans		12,208,166			11,788,959			10,736,973			13.7	%		3.6	%
Customer funds		12,108,365			11,484,525			10,234,278			18.3	%		5.4	%
Shareholders’ equity		1,317,185			1,245,339			1,151,586			14.4	%		5.8	%
Client margin²		5.1	%		5.0	%		4.9	%
Net interest margin		4.4	%		4.0	%		3.9	%
Efficiency ratio		37.9	%		46.5	%		38.3	%
Return on average equity³		22.4	%		18.3	%		22.8	%
PDL / Total loans		0.80	%		0.79	%		0.93	%
Coverage ratio of PDLs		204.2	%		188.1	%		145.2	%
Risk index⁴		1.64	%		1.45	%		1.36	%
BIS ratio		14.6	%		12.6	%		14.3	%
Branches⁵		410			397			361
ATMs		1,635			1,588			1,395
Employees		8,691			8,184			7,583

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

2.	Client net interest income / average loans (See Net interest revenue)

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

INTEREST EARNING ASSETS

Solid growth in retail banking

Interest Earning Assets	Quarter ended,						% Change
(Ch$ million)	March 31, 2007		Dec. 31, 2006		March 31, 2006		March 2007/2006			March 07/ Dec. 06
Consumer loans		1,869,318		1,800,507		1,480,355		26.3	%		3.8	%
Residential mortgage loans*		2,894,243		2,779,769		2,381,434		21.5	%		4.1	%
Commercial loans		4,172,835		4,048,221		3,958,263		5.4	%		3.1	%
Commercial mortgage loans**		168,704		181,628		229,005		(26.3	%)		(7.1	%)
Foreign trade loans		869,615		741,776		589,509		47.5	%		17.2	%
Leasing		787,287		764,408		694,733		13.3	%		3.0	%
Factoring		125,144		168,372		161,714		(22.6	%)		(25.7	%)
Other outstanding loans		44,153		37,541		12,190		262.2	%		17.6	%
Contingent loans		1,010,376		1,022,687		933,590		8.2	%		(1.2	%)
Interbank loans		168,554		151,491		195,798		(13.9	%)		11.3	%
Past due loans		97,937		92,559		100,382		(2.4	%)		5.8	%
Total loans		12,208,166		11,788,959		10,736,973		13.7	%		3.6	%
Total financial investments		1,197,671		1,015,376		1,439,286		(16.8	%)		18.0	%
Total interest-earning assets		13,405,838		12,804,335		12,236,959		9.6	%		4.7	%

*	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 1Q 2007 total loans increased 3.6% QoQ with continued growth in high yielding retail segments. Consumer loans expanded 3.8% QoQ and 26.3% YoY. The Bank’s leading market share in consumer lending increased 110 basis points YoY and remained stable QoQ at 26.8%.

Residential mortgage lending increased 4.1% QoQ and 21.5% YoY. Market share in residential mortgage lending reached 25.9% as of March 2007 increasing 79 basis points YoY and steady compared to year-end 2006. Noteworthy in the quarter was the launching of a new mortgage product denominated in fixed nominal pesos for up to 20 years. This is an important breakthrough in the Chilean mortgage market as until now all mortgages were denominated in real terms (Unidades de Fomento or UFs).

Commercial loans increased 3.1% QoQ and 5.4% YoY led by an increase in lending to companies in various segments. This responds to the higher growth in the market in line with a stronger economy. In 1Q 2007 the Bank has observed a pick up in investment projects in various business segments. Market share in lending to companies, as defined by the Superintendence of Banks, decreased 10 basis points QoQ and 171 basis points YoY. This decline is mainly due to lower growth in the low yielding corporate segment, reflecting the Bank’s focus on allocating efficiently its capital to the most profitable uses.

The Bank’s foreign trade business performed well in the quarter, increasing 17.2% in the period. The country’s dynamic export business, especially to Asia, has boosted this business. The Bank’s strong position in this market due to its international connections and strong ratings has also been an important factor explaining this growth. For example, 64% of all letters of credit backing export to Asia were executed by the Bank. This also explains, in part, the 8.2% QoQ rise in contingent loans. In addition, the peso depreciated in the quarter and these figures were in part affected by the translation gains that this produces.

Total loan market share decreased 7 basis points QoQ and reached 22.2% as March 2007, reflecting the stable market share in lending to individuals and the slight decline in market share among companies. This reflects the Bank’s effort to improve the asset mix and to maximize profitability by adequately allocating its capital to the most profitable uses.

Loans by business segment*	Quarter ended,						% Change
(Ch$ million)	March. 31, 2007		Dec. 31, 2006		March 31, 2006		March 2007/2006			March 07/ Dec. 06
Total loans to individuals		5,214,822		5,068,428		4,371,655		19.3	%		2.9	%
SMEs		1,864,258		1,784,229		1,494,802		24.7	%		4.5	%
Total retail lending		7,079,266		6,852,657		5,866,457		20.7	%		3.3	%
Institutional lending		192,168		202,142		183,052		5.0	%		(4.9	%)
Middle-Market & Real estate		2,348,975		2,301,361		2,125,214		10.5	%		2.1	%
Corporate		1,376,704		1,242,252		1,427,656		(3.6	%)		10.8	%

* Excludes contingent loans and interbank loans

Retail lending - which includes lending to individuals and SMEs - increased 3.3% QoQ and 20.7% YoY, led by solid growth in lending to individuals and SMEs. Loans to individuals increased 2.9% QoQ and 19.3% YoY. Loans to SMEs increased 6.1% QoQ and 27.2% YoY. The Bank continues to focus on expanding in the retail market due to low penetration levels and a healthy economic environment. Recent economic data shows that private consumption continues to grow at a faster pace than GDP and unemployment levels reached 6.7% in 1Q 2007, the lowest rate since 3Q 1998.

Loans in corporate banking increased 10.8% QoQ and decreased 2.1% YoY. This growth was mainly due to a 71.9% expansion of the foreign trade business and a 4.0% increase in commercial loans in this segment. As mentioned, the foreign trade business was boosted by the Bank’s active participation in financing exports to Asia and translation gains caused by the depreciation of the peso in the quarter. Foreign trade loans are also somewhat volatile quarter to quarter in this segment as a few customers concentrate a large percentage of total exports, especially in the mining sector.

Lending to the middle market segment increased 2.1% QoQ and 10.5% YoY. Spreads of new loans in this segment have been under pressure and the Bank avoided renewing some loan operations at unattractive returns.

CUSTOMER FUNDS

Good growth of customer funds despite falling short-term interest rates

Funding	Quarter ended,						Change %
(Ch$ million)	March. 31, 2007		Dec. 31, 2006		March 31, 2006		March 2007/2006			March 07/ Dec. 06
Non-interest bearing deposits		2,543,569		2,482,997		2,217,928		14.7	%		2.4	%
Time deposits and savings accounts		7,280,989		6,909,335		6,264,072		16.2	%		5.4	%
Total customer deposits		9,824,558		9,392,332		8,482,000		15.8	%		4.6	%
Mutual funds		2,283,807		2,092,192		1,752,278		30.3	%		9.2	%
Total customer funds		12,108,365		11,484,524		10,234,278		18.3	%		5.4	%

Short-term rates fell in the quarter. The overnight reference rate set by the Central Bank was lowered to 5.0% in January 2007 from 5.25%. The 30-day rate decreased 18 basis points QoQ to 4.63% in March 2007 from 4.81% as of December 2006. Despite falling rates, the Bank was able to increase the time deposit base which expanded 5.4% QoQ and 16.2% YoY. As time deposit re-price at lower rates this should benefit positively affect margins in the coming quarters.

Non-interest bearing deposits increased 2.4% QoQ and 14.7% YoY as low rates and fuelled growth of these deposits. The average balance of non-interest bearing checking accounts increased 11.7% QoQ and 17.0% YoY.

Total quarterly average non-interest bearing demand deposits

Quarter ended,

Change %

(Ch$ million)

March. 30,

2007

Dec. 31,

2006

March 30,

2006

March

2007/2006

March 07/

Dec. 06

Total

2,077,301

1,859,557

1,776,033

17.0

11.7

Assets under management in the Bank’s mutual fund subsidiary increased 9.2% QoQ and 30.3% YoY. The strength of the local and international stock markets boosted investment levels and the value of funds under management in the quarter.

Moody’s recently upgraded the Bank’s credit ratings as part of the application of its refined joint default analysis (JDA) and updated bank financial strength rating (BFSR) methodologies. The BFSR was affirmed at B-. The Foreign Currency Senior Unsecured Debt Rating was raised to Aa3 from A1. The Foreign Currency Subordinated Debt Rating was raised to Aa3 from A2. The Long Term Foreign Currency Deposit Rating was affirmed at A2 and remains constrained by the Chile country ceiling for deposits. As stated by Moody’s “the most notable debt ratings upgrades compared to pre-JDA levels were for Banco Santander Chile”.

NET INTEREST INCOME

Client margins increasing with improved loan mix. Higher inflation also boosts margins

Net Interest Income	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006 (reclassified)			1Q 07/ 1Q 06			1Q 07 / 4Q06
Client net interest income ^1,2		150,071			141,799			124,580			20.5	%		5.8	%
Non-client net interest income ^1,3		5,821			(4,900	)		1,309			344.7	%		--	%
Net interest income		155,892			136,899			125,889			23.8	%		13.9	%
Average interest-earning assets		14,204,463			13,783,754			12,919,760			9.9	%		3.1	%
Average loans		11,686,106			11,357,344			10,151,457			15.1	%		2.9	%
Net interest margin ^4,5		4.4	%		4.0	%		3.9	%
Client margin ⁴		5.1	%		5.0	%		4.9	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		23.7	%		23.4	%		22.5	%
Quarterly inflation rate ⁶		0.20	%		-0.35	%		-0.33	%
Avg. overnight interbank rate (nominal)		5.09	%		5.30	%		4.59	%
Avg. 10 year Central Bank yield (real)		2.69	%		2.78	%		3.00	%

1.	The Bank has modified the methodology of calculating client and non-client income. The historical evolution of this indicator is available in the appendix of this report.

2.	Client net interest income and margins, is net interest income ( and margins) generated by our commercial areas.

3.	Non-client net interest income is net interest income generated by centralized activities, non-segmented portions of the balance sheet and Financial Management.

4.	Annualized

5.	Client net interest income divided by average loans

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

Net interest income in 1Q 2007 increased 23.8% YoY and 13.9% QoQ. This increase was mainly due to a higher net interest margin which reached 4.4% in 1Q 2007 compared to 3.9% in 1Q 2006 and 4.0% in 4Q 2006. Average interest earning asset increased 9.9% YoY and 3.1% QoQ.

Client net interest income. Client net interest income - which is net interest income (and margins) generated by our commercial areas - increased 20.5% YoY and 5.8% QoQ. This growth was led by the 15.1% YoY and 2.9% QoQ increase in average loans. Client net interest margins increased 20 basis points YoY and 10 basis points QoQ. The growth of retail lending activities and the positive evolution of non-interest bearing liabilities are the principal factors that explain the positive evolution of client net interest income and margins in the period. In first quarter of 2007, the Bank improved its pricing structure and this also benefited client margins.

Non-Client net interest income. Non-client net interest income - which is net interest income generated by centralized activities, non-segmented portions of the balance sheet and Financial Management - totaled a gain of Ch$5,821 million compared to a loss of Ch$4,900 million in 4Q 2006 and a gain of Ch$1,309 million in 1Q 2006. This rise was mainly due to the higher inflation rate in the quarter following the negative inflation rates in 1Q and 4Q 2006. The Bank has a positive gap in terms of inflation indexed assets and liabilities. Long-term assets are denominated, for the most part, in inflation indexed pesos and are funded, in part, with non-interest bearing checking accounts and capital. The Central Bank also reduced short-term rates in 1Q 2007, which lowered funding costs.

Evolution of Quarterly Inflation

Source: Banco Central , measured as variation of the UF

PROVISION FOR LOAN LOSSES

The coverage ratio rises to 204.2% as the Bank upgrades it provisioning models for consumer lending

Provision for loan losses	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006			1Q 07/ 1Q 06			1Q 07 / 4Q06
Provisions		(26,551	)		(13,569	)		(1,041	)		2,450.5	%		95.7	%
Charge-offs		(46,872	)		(38,572	)		(34,743	)		34.9	%		21.5	%
Gross provisions and charge-offs		(73,423	)		(52,141	)		(35,784	)		105.2	%		40.8	%
Loan loss recoveries		37,092			12,627			10,313			259.7	%		193.8	%
Net provisions		(36,331	)		(39,514	)		(25,471	)		42.6	%		(8.1	%)
Total loans		12,208,167			11,788,959			10,736,973			13.7	%		3.6	%
Total reserves (RLL)		200,021			174,064			149,112			34.1	%		14.9	%
*Past due loans (PDL)**		97,937			92,559			100,382			(2.4	%)		5.8	%
Gross provision expense / loans**		2.41	%		1.77	%		1.33	%
Net provision expense / loans **		1.19	%		1.34	%		0.95	%
PDL/Total loans		0.80	%		0.79	%		0.93	%
Expected loss (RLL / loans)		1.64	%		1.45	%		1.36	%
RLL / Past due loans		204.2	%		188.1	%		145.2	%

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

** Annualized

In 1Q 2007 the Bank’s net provisions expenses totaled Ch$36,331 million an increase of 42.6% YoY and a decrease of 8.1% QoQ. Gross provisions and charge-offs increased 105.2% YoY and 40.8% QoQ. This was mainly due to the growth of lending to higher yielding and riskier retail segments and the upgrading of provisioning models and credit scoring in order to maintain provisioning and coverage standards up to date with the expansion of this profitable business.

In 2006, the Bank improved its internal provisioning models by not only focusing on non-performance, but introducing statistical models that take into account a borrower’s credit history and indebtedness levels. Additional innovations were implemented in 1Q 2007. Firstly, the Bank now differentiates between old and new clients when determining a client’s risk profile. This modification resulted in no significant change in provision expense in the medium term, but should reduce monthly volatility of provisions and charge-offs.

Secondly, the Bank is in the process of implementing additional modifications. The most important was incrementing the period of back-testing for determining a client’s risk profile from 12 to 24 months. As a result, the Bank recognized in the quarter additional reserves of approximately US$32 million to prepare for the implementation of these new models. The actual amount may vary when these changes are fully implemented.

In the quarter, the Bank also took important steps in improving its collection process. More collecting agents have been hired and a senior commercial officer was placed at the head of this division. Moreover in 1Q 2007, the Bank started a process of selling charged-off loans. In the quarter, the Bank sold charged-off loans dating from the early 1980’s up to 2004, recording a gain of approximately US$43 million. Excluding this gain, recoveries increased 35.3%, reflecting the stronger performance of this unit.

As a result of these measures, the Bank continues to display sound asset quality indicators. The past due loan ratio as of March 2007 reached 0.80% down from 0.93% as of March 2006 and flat compared to 4Q 2006. Reserve for loan losses increased 34.1% YoY and 14.9% QoQ. The expected loan loss ratio (reserves for loan losses over total loans) increased to 1.64% in 1Q 2007 from 1.45% in 4Q 2006 and 1.36% in 1Q 2006. The coverage ratio of past due loans rose to 204.2% as of March 2007 compared to 188.1% as of December 2006 and 145.2% as of March 2006.

Going forward the Bank expects asset quality indicators to remain sound, but as the retail banking portfolio increases, provision expenses and the risk index could continue to rise.

FEE INCOME

Growth in client base, cross selling and product usage boosts retail banking fees

Fee income	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006			1Q 07/ 1Q 06			1Q 07 / 4Q06
Checking accounts		10,401			11,312			9,628			8.0	%		-8.1	%
Adm. & collection of insurance policies		7,052			6,249			6,349			11.1	%		12.9	%
Mutual fund services		6,093			5,710			4,467			36.4	%		6.7	%
Credit cards		4,892			4,808			4,494			8.9	%		1.7	%
Automatic teller cards		3,873			3,351			3,714			4.3	%		15.6	%
Insurance brokerage		2,927			3,597			2,167			35.1	%		-18.6	%
Lines of credit		2,879			3,134			2,648			8.7	%		-8.1	%
Stock brokerage		1,984			416			391			407.4	%		376.9	%
Santander SuperCaja		505			143			-						253.1	%
Other product and services		4,503			3,485			4,472			0.7	%		29.2	%
Total fee income, net		45,109			42,205			38,330			17.7	%		6.9	%
Fees / operating expense		59.3	%		47.9	%		55.6	%

Net fee income increased 17.7% YoY and 6.9% YoY in 1Q 2007. The Bank continues to expand its client base, cross-selling and product usage, especially in retail banking. The total number of clients increased 12.0% YoY to 2.52 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 21.0% YoY in 1Q 2007. Market share in checking accounts reached 27.6% as of February 2007, the latest figure available, compared to 25.6% as of February 2006. In this period the Bank’s opened 43.2% of all new account opened in the Chilean market. As a result, in 1Q 2007 fees from checking accounts increased 8.0% YoY and fees from lines of credit rose 8.7% YoY. The 8.1% QoQ decline in checking account and line of credit fees was mainly due to seasonal factors and a regulatory change that prohibited certain fees charged to checking account holders related to bad check clearance.

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 27.7% YoY as of March 2007. In Santander Banefe, the amount of cross-sold clients (clients that uses at least 2 or more other products) rose 17.5% YoY as of March 2007.

Credit card fees increased 8.9% YoY in 1Q 2007. According to information published by Transbank, the industry’s credit card processor, as of March 2007 purchases with Santander credit cards in monetary terms were growing 19.2% YoY in real terms compared to 16.9% for the market. Market share in terms of purchases reached 35.4% as of March 2007 compared to 34.7% as of March 2006. This industry is also facing intense competition in this product offsetting, in part, the increases in market share and business activity.

ATM fees increased 4.3% YoY and 15.6% QoQ. Despite investment in the ATM network, intense competition has reduced fee growth from this product. The Bank continues to expand its ATM network in order to increase bank penetration levels and to ensure that greater product penetration is accompanied with greater product usage, especially in emerging sectors of the population. An extensive ATM network is key for this process. Usage of our debit/ATM cards has grown at a rapid pace. Market share in debit card usage increased from 22.6% as of March 2006 to 24.0% as of March 2007. Purchases with Santander debit cards increased 35.4% YoY in real terms compared to 27.1% for the industry in the same period. As of March 2007, the Bank had a network of 1,635 ATMs and installed 47 new ATMs in 1Q 2007.

Investing to sustain growth momentum in retail banking

* Including Santander Super Caja offices

Insurance brokerage fees increased 35.1% YoY in 1Q 2007. Despite intense competition in this line of business that affected fee income in previous quarters, the launching of various new products and other sale campaigns has boosted insurance brokerage fees. Fees from the administration and collection of insurance policies increased 11.1% YoY in the same period. These fees are directly related to the growth of our mortgage loan book and lower-than-estimated claim rates, which results in higher administration fees paid by insurers to us.

Fees from mutual fund management increased 36.4% YoY in 1Q 2007. Assets under management totaled Ch$2,283,807 and increased 30.3% in the same period fuelling asset management fee growth. The strength of the local and international stock markets coupled with falling long-term rates also boosted the value of funds under management in the quarter.

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 50.6% of the merged entity. This has boosted the Bank’s participation in the stock brokerage business, especially among retail clients by better utilizing the Bank’s distribution network to brokerage shares. Fees from stock brokerage increased 407.4% YoY in 1Q 2007.

In 4Q 2006 the Bank created a new subsidiary, Santander Servicios de Recaudación y Pagos Ltda (Santander SuperCaja), whose main function will be to open and operate special payment centers where non-clients can become clients and perform all types of transactional services. These payment centers will operate seven days a week. In the 4Q 2006 this subsidiary opened 22 new payment centers and 3 in 1Q 2007. SuperCaja generated fees of Ch$505 million in 1Q 2007.

OPERATING EXPENSES AND EFFICIENCY

Efficiency ratio reaches 37.9%

Operating Expenses	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006			1Q 07/ 1Q 06			1Q 07 / 4Q06
Personnel expenses		37,664			48,118			34,005			10.8	%		(21.7	%)
Administrative expenses		28,604			29,943			25,836			10.7	%		(4.5	%)
Depreciation and amortization		9,833			10,000			9,076			8.3	%		(1.7	%)
Operating expenses		76,101			88,061			68,917			10.4	%		(13.6	%)
Efficiency ratio*		37.9	%		46.5	%		38.3	%

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

In 1Q 2007 operating expenses increased 10.4% YoY. The efficiency ratio reached 37.9% in 1Q 2007 compared to 38.3% in 1Q 2006 and 46.5% in 4Q 2006. Personnel expenses increased 10.8% YoY. Headcount has increased 14.6% in the same period, totaling 8,691 employees. Santander SuperCaja added 150 new employees to headcount. The 21,7% QoQ decrease in personnel expenses was mainly due to seasonal factors and the end of negotiation bonus of Ch$6,622 million that was recognized in 4Q 2006 as part of the new collective bargaining agreement.

The 10.7% YoY increase in administrative expenses was directly linked to the higher commercial activities and the larger distribution network. The 4.5% QoQ decrease in administrative expenses was mainly due to seasonal factors.

GAINS (LOSSES) ON FINANCIAL TRANSACTIONS

Smaller mark-to-market and trading results lowers gains from financial transactions

Gains and losses on financial transactions	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006 (reclassified)			1Q 07/ 1Q 06			1Q 07 / 4Q06
Net gain (loss) from trading and mark-to-market		15,492			22,772			43,307			(64.2	%)		(32.0	%)
Foreign exchange transactions, net		(5,262	)		(4,460	)		(19,997	)		(73.7	%)		18.0	%
Gains (losses) on financial transactions³		10,230			18,312			23,310			(56.1	%)		(44.1	%)

In 1Q 2007 the gain on financial transactions totaled Ch$10,230 million compared to Ch$23,310 million in 1Q 2006 and Ch$18,312 million in 4Q 2006. In both 1Q and 4Q 2006 long-term interest rates declined substantially, resulting in high mark-to-market gains. In 1Q 2007 long-term rates continued to decline, especially in the 5 to 10 year maturity range, but the Bank “shortened” its fixed income position in expectation of rebounding rates in the coming quarters given the positive evolution of the Chilean economy, reducing mark-to-market and trading results in the quarter.

Evolution of long-term rates (real terms, %)

Source: Central Bank

For analysis purposes only, we have created the line item: Gains (losses) on financial transactions that is the sum of the net gain (loss) from trading, the mark-to-market of financial investment and derivatives, and foreign exchange transactions. The result 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. Therefore, the most important items that impacts the line item Gains (losses) on financial transactions are: the net results from mark-to-market of financial investments categorized as trading, the mark-to-market of derivatives and hedged items, including hedging for inflation, net results from proprietary trading and the results from the sale of derivatives to clients.

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

Other Income and Expenses	Quarter									Change %
(Ch$ million)	1Q 2007			4Q 2006			1Q 2006 (reclassified)			1Q 07/ 1Q 06			1Q 07 / 4Q06
Sales force expense		(5,834	)		(3,585	)		(4,042	)		44.3	%		62.7	%
Other operating expenses, net		(4,703	)		(4,284	)		(3,728	)		26.2	%		9.8	%
Total other operating loss, net		(10,537	)		(7,869	)		(7,770	)		35.6	%		33.9	%

Non-operating income, net		1,051			9,055			(11,016	)		(109.5	%)		(88.4	%)
Income attributable to investments in other companies		134			(82	)		240			(44.2	%)		(263.4	%)
Losses attributable to minority interest		(540	)		(41	)		(65	)		730.8	%		1217.1	%
Total non-operating results, net		645			8,932			(10,841	)		(105.9	%)		(92.8	%)
Price level restatement		(2,149	)		2,480			2,781			(177.3	%)		(186.7	%)
Income tax		(14,569	)		(12,516	)		(12,877	)		13.1	%		16.4	%

Other operating results, net totaled a loss of Ch$10,537 million, increasing 35.6% YoY. Total sales force expenses reached Ch$4,703 million in 1Q 2007 increasing 26.2% YoY, reflecting the strong commercial efforts being made in retail banking. Other net operating expenses increased 26.2% YoY mainly due to higher expenses related to customer service expenses, which consists primarily of expenses related to our call center, expenses paid to third parties for transporting funds for corporate customer and expenses relating to our credit card business.

Non-operating income, net totaled a gain of Ch$645 million in 1Q 2007 compared to a loss of Ch$10,841 million in 1Q 2006. This difference is mainly due to lower provisions for non-credit related contingencies and lower charge-offs of repossessed assets. Compared to 4Q 2006 non-operating income, net decreased 92.8% as 4Q 2006 figures included a reversal of non-credit related contingencies. 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$2,149 million. The Bank must adjust its capital and fixed assets for the variations in price levels. Since the Bank's capital is larger than fixed assets, when inflation is positive, the Bank usually records a loss from price restatement and vice-versa. The inflation rate of +0.20% in 1Q 2007 compared to the deflation registered in 4Q 2006 (-0.35%) and 1Q 2006 (-0.33%) explains the variation of this result.

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROAE in 1Q 2007 reached 22.4%. The Bank’s annual dividend increases 19.1%

Shareholders’ equity	Quarter ended									Change %
(Ch$ million)	March. 31, 2007			Dec. 31, 2006			March 31, 2006			March 2007/2006			March 07/ Dec. 06
Total capital and reserves		1,247,269			961,661			1,093,302			14.1	%		29.7	%
Unrealized gain (loss) available for sale portfolio		(2,272	)		(1,904	)		(6,151	)		(63.1	%)		19.3	%
Net Income		72,189			285,582			64,434			12.0	%		(74.7	%)
Total shareholders’ equity		1,317,185			1,245,339			1,151,585			14.4	%		5.8	%
Return on average equity (ROAE)		22.4	%		18.3	%		22.8	%

Shareholders’ equity totaled Ch$1,317,185 million as of March 31, 2007. The Bank’s ROAE in 1Q 2007, reached 22.4% compared to 22.8% in 1Q 2006 and 18.3% in 4Q 2006.

The Bank’s BIS ratio as of March 31, 2007 reached 14.6% with a Tier I ratio of 10.6%. Banco Santander Chile held its annual Ordinary Shareholders’ Meeting on April 24, 2007. During the meeting, a dividend of Ch$0.98504643 per share was approved, corresponding to 65% of 2006 net income and 19.1% higher than the dividend paid in 2006. Immediately following the payment of the dividend the Bank’s BIS ratio should be approximately 13.0% and the Tier I ratio 9.0%.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	March. 31, 2007			Dec. 31, 2006			March 31, 2006			March 2007/2006			March 07/ Dec. 06
Tier I		1,244,997			959,757			1,087,152			14.5	%		29.7	%
Tier II		470,098			458,546			361,713			30.0	%		2.5	%
Regulatory capital		1,715,095			1,418,303			1,448,865			18.4	%		20.9	%
Risk weighted assets		11,741,425			11,222,348			10,107,478			16.2	%		4.6	%
Tier I ratio		10.6	%		8.6	%		10.8	%
BIS ratio		14.6% (13.0% ex- dividend)			12.6	%		14.3% (12.9% ex-dividend)

INSTITUTIONAL BACKGROUND

As per latest public records published by the Superintendence of Banks for March 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 833,873 million in assets and EUR 1,000,996 million in managed funds, 67 million customers, 10,852 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 operates in Portugal, where it is the third largest banking group. Through Santander Consumer Finance, it also operates a leading consumer finance franchise in Germany, Italy, Spain and nine other European countries. In 2006, Santander registered 7,596 million euros in net attributable profits, an increase of 22% from the previous year.

In Latin America, Santander manages over US$250 billion in business volumes (loans, deposits, mutual funds, pension funds and managed funds) through 4,370 offices. In 2006, Santander reported US$1,409 million in net attributable income in Latin America, 29% 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

BANCO SANTANDER - CHILE AND SUBSIDIARIES

Consolidated Balance Sheet

In Ch$ millions constant as of March 2007

	At March 31,
	2007			2006
	Ch$			Ch$
	Millions			Millions
ASSETS
*Cash*		*1,016,203.0*			*1,351,748.3*

*Loans:*
Commercial		4,172,835.3			4,065,927.7
Foreign trade		869,614.6			605,543.6
Consumer		1,869,317.9			1,520,620.6
Letters of credit		456,482.4			601,229.6
Leasing		787,286.7			713,630.0
Contingent		1,010,376.3			958,983.5
Other loans		2,775,761.8			2,258,847.4
Past due		97,937.4			103,112.8

*Total Loans*		*12,039,612.4*			*10,827,895.2*

Less: Loan loss allowance		(200,021.0	)		(153,167.8	)

*Total net loans*		*11,839,591.4*			*10,674,727.4*

*Other credit operations:*
Interbank loans		168,554.1			201,123.5
Investments purchased under agreements to resell		46,691.5			33,934.7

*Total other credit operations:*		*215,245.6*			*235,058.2*

*Trading Investments*		*790,234.3*			*867,252.4*

*Non-trading investments*
Available for sale		360,744.9			577,247.7
Held to maturity		0.0			0.0

*Total non-trading investments*		*360,744.9*			*577,247.7*

*Derivatives*		*377,627.9*			*314,026.9*

*Other Assets*		*704,523.6*			*611,669.4*

*Fixed Assets*
Bank premises and equipment		222,227.8			225,480.3
Investments in other companies		7,026.0			6,779.0

*Total fixed assets*		*229,253.8*			*232,259.3*


*Total Assets*		*15,533,424.5*			*14,863,989.6*
		0.0			0.0

*ROBERTO JARA CABELLO*		*OSCAR VON CHRISMAR*
*Gerente de Contabilidad*		*Gerente General*

BANCO SANTANDER - CHILE AND SUBSIDIARIES

Consolidated Balance Sheet

In Ch$ millions constant as of March 2007

	At March 31,
	2007			2006
	Ch$			Ch$
	Millions			Millions
LIABILITIES & SHAREHOLDERS' EQUITY
*LIABILITIES*

*DEPOSITS AND OTHER OBLIGATIONS*
Checking accounts		1,676,370.1			1,521,720.4
Deposits		7,336,518.4			6,480,526.7
Other demand deposits		811,668.7			710,462.8
Investments under agreements to repurchase		167,280.0			99,070.3
Mortgage finance bonds		509,696.9			638,373.0
Contingent liabilities		1,012,879.6			960,055.6

*Total Deposits and other obligations*		*11,514,413.7*			*10,410,208.8*

*BONDS*
Senior bonds		562,285.1			460,405.4
Subordinated bonds		491,132.5			401,384.0

*Total bonds*		*1,053,417.6*			*861,789.4*


*Borrowings for other financial institutions*
*and Central Bank of Chile*
Credit lines for renegotiations of loans		4,605.1			6,286.4
Other Central Bank borrowings		237,241.1			127,692.6
Borrowings from domestic financial institutions		0.0			0.0
Foreign borrowings		615,929.9			1,590,002.1
Other obligations		70,046.8			48,710.7

*Total borrowing form financial institutions*		*927,822.9*			*1,772,691.8*

*Derivatives*		*375,289.7*			*285,314.8*

*Other liabilities*		*327,831.5*			*349,516.0*

*Total liabilities*		*14,198,775.4*			*13,679,520.8*

*Minority interest*		*17,464.2*			*1,559.6*

*Shareholders' equity*
Capital and reserves		1,247,268.5			1,123,040.2
Other equity accounts		(2,272.1	)		(6,317.8	)
Net income		72,188.5			66,186.8

*Total Shareholders' Equity*		*1,317,184.9*			*1,182,909.2*

*Total Liabilities and Shareholders' Equity*		*15,533,424.5*			*14,863,989.6*
		0.0			0.0

*ROBERTO JARA CABELLO*		*OSCAR VON CHRISMAR*
*Gerente de Contabilidad*		*Gerente General*

BANCO SANTANDER - CHILE AND SUBSIDIARIES

Consolidated Balance Sheet

For the period between January 1 and March 31, 2007

In Ch$ millions constant as of March 2007

	2007			2006
	*Ch$*			*Ch$*
	*Millions*			*Millions*
INCOME STATEMENT
*Operating Results*

Interest income		288,316.6			223,513.9
Gains from trading activities		23,590.0			49,576.4
Fee income		55,369.5			47,805.5
Foreign exchange gains		0.0			0.0
Other operating income		1,817.1			1,551.5
*Gross operating income*		*369,093.2*			*322,447.3*

*Less:*
Interest expesnes		(132,425.4	)		(94,200.7	)
Loss frm trading		(8,097.6	)		(5,091.0	)
Fee expenses		(10,261.4	)		(8,432.9	)
Foreign exchange losses		(5,261.9	)		(20,540.8	)
Other operating expenses		(12,353.8	)		(9,533.0	)

*Operating income*		*200,693.1*			*184,648.9*

Personnel salaries and expenses		(37,664.0	)		(34,930.0	)
Administrative and other expenses		(28,603.6	)		(26,538.4	)
Depreciation and amortization		(9,833.0	)		(9,322.9	)

*Operating income after expenses*		*124,592.5*			*113,857.6*

Loan loss provisions, net		(36,331.1	)		(26,163.5	)

*Net operating income*		*88,261.4*			*87,694.1*

*Non-operating results*

Non-operating income		3,478.3			4,187.2
Non-operating expenses		(2,427.2	)		(15,503.0	)
Income attributable to investments in other companies		133.9			246.3
Price level restatement		(2,148.6	)		2,856.1

*Net income before taxes*		*87,297.8*			*79,480.7*

Income tax		(14,569.0	)		(13,227.6	)

*Net income after taxes before minority interest*		*72,728.8*			*66,253.1*

Minority interest		(540.3	)		(66.3	)


*Net income*		*72,188.5*			*66,186.8*
		0.0			0.0

*ROBERTO JARA CABELLO*		*OSCAR VON CHRISMAR*
*Gerente de Contabilidad*		*Gerente General*

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
	2007			2007			2006			2006			March 2007 / 2006			March 2007 / Dec. 2006
	US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions
ASSETS											(Reclassified)
Cash and due from banks
Noninterest bearing		761,290			410,617			947,741			346,360			18.6	%		(56.7	%)
Interbank deposits-interest bearing		1,122,765			605,586			144,666			969,594			(37.5	%)		318.6	%
Total cash and due from banks		1,884,055			1,016,203			1,092,407			1,315,954			(22.8	%)		(7.0	%)

Financial investments
Trading		1,465,106			790,234			639,461			844,288			(6.4	%)		23.6	%
Available for sale		668,827			360,745			345,108			561,962			(35.8	%)		4.5	%
Held to maturity		0			0			0			0			—	%		—	%
Investment collateral under agreements to repurchase		86,568			46,692			30,807			33,036			41.3	%		51.6	%
Total financial investments		2,220,501			1,197,671			1,015,376			1,439,286			(16.8	%)		18.0	%

Loans, net
Commercial loans		7,736,498			4,172,835			4,048,221			3,958,263			5.4	%		3.1	%
Consumer loans		3,465,743			1,869,318			1,800,507			1,480,355			26.3	%		3.8	%
Mortgage loans (Financed with mortgage bonds)		846,324			456,482			485,849			585,309			(22.0	%)		(6.0	%)
Foreign trade loans		1,612,279			869,615			741,776			589,509			47.5	%		17.2	%
Interbank loans		312,502			168,554			151,491			195,798			(13.9	%)		11.3	%
Leasing		1,459,642			787,287			764,408			694,733			13.3	%		3.0	%
Other outstanding loans		5,146,304			2,775,762			2,681,461			2,199,034			26.2	%		3.5	%
Past due loans		181,577			97,937			92,559			100,382			(2.4	%)		5.8	%
Contingent loans		1,873,252			1,010,376			1,022,687			933,590			8.2	%		(1.2	%)
Reserves		(370,842	)		(200,021	)		(174,064	)		(149,112	)		34.1	%		14.9	%
Total loans, net		22,263,279			12,008,145			11,614,895			10,587,861			13.4	%		3.4	%

Derivatives		700,128			377,628			372,688			305,712			23.5	%		1.3	%

Other assets
Bank premises and equipment		412,014			222,228			231,360			219,510			1.2	%		(3.9	%)
Foreclosed assets		23,437			12,641			15,775			13,815			(8.5	%)		(19.9	%)
Investments in other companies		13,026			7,026			6,654			6,600			6.5	%		5.6	%
Assets to be leased		51,119			27,572			30,293			24,263			13.6	%		(9.0	%)
Other		1,231,639			664,310			463,991			557,394			19.2	%		43.2	%
Total other assets		1,731,235			933,777			748,073			821,582			13.7	%		24.8	%

TOTAL ASSETS		28,799,198			15,533,424			14,843,439			14,470,395			7.3	%		4.6	%

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
	2007		2007		2006		2006		March 2007 / 2006			March 2007 / Dec. 2006
	US$ thousands		Ch$ millions		Ch$ millions		Ch$ millions
							(Reclassified)
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits

Current accounts		3,108,015		1,676,370		1,663,414		1,481,426		13.2	%		0.8	%
Bankers drafts and other deposits		1,607,800		867,199		819,583		736,502		17.7	%		5.8	%
Total non-interest bearing deposits		4,715,815		2,543,569		2,482,997		2,217,928		14.7	%		2.4	%

Savings accounts and time deposits		13,499,062		7,280,989		6,909,335		6,264,072		16.2	%		5.4	%
Total deposits		18,214,877		9,824,558		9,392,332		8,482,000		15.8	%		4.6	%

Other interest bearing liabilities
Banco Central de Chile borrowings
Credit lines for renegotiation of loans		8,538		4,605		5,080		6,120		(24.8	%)		(9.4	%)
Other Banco Central borrowings		439,848		237,241		134,417		124,311		90.8	%		76.5	%
Total Banco Central borrowings		448,386		241,846		139,497		130,431		85.4	%		73.4	%

Investments sold under agreements to repurchase		310,140		167,280		19,929		96,447		73.4	%		739.4	%

Mortgage finance bonds		944,986		509,697		530,206		621,469		(18.0	%)		(3.9	%)

Other borrowings
Bonds		1,042,485		562,285		565,653		448,214		25.5	%		(0.6	%)
Subordinated bonds		910,568		491,133		490,416		390,756		25.7	%		0.1	%
Borrowings from domestic financial institutions		0		0		0		0		—	%		—	%
Foreign borrowings		1,141,943		615,930		812,267		1,547,899		(60.2	%)		(24.2	%)
Other obligations		129,866		70,046		64,193		47,421		47.7	%		9.1	%
Total other borrowings		3,224,862		1,739,394		1,932,529		2,434,290		(28.5	%)		(10.0	%)
Total other interest bearing liabilities		4,928,374		2,658,217		2,622,161		3,282,637		(19.0	%)		1.4	%

Derivatives		695,793		375,290		355,922		277,760		35.1	%		5.4	%

Other liabilities
Contingent liabilities		1,877,895		1,012,880		1,024,048		934,634		8.4	%		(1.1	%)
Other		607,800		327,830		202,115		340,260		(3.7	%)		62.2	%
Minority interest		32,379		17,464		1,522		1,518		1050.5	%		1047.4	%
Total other liabilities		2,518,074		1,358,174		1,227,685		1,276,412		6.4	%		10.6	%

Shareholders' equity
Capital and reserves		2,308,241		1,244,996		959,757		1,087,152		14.5	%		29.7	%
Income for the year		133,839		72,189		285,582		64,434		12.0	%		(74.7	%)
Total shareholders' equity		2,442,080		1,317,185		1,245,339		1,151,586		14.4	%		5.8	%
TOTAL LIABILITIES AND
SHAREHOLDER'S EQUITY		28,799,198		15,533,424		14,843,439		14,470,395		7.3	%		4.6	%

BANCO SANTANDER CHILE

QUARTERLY INCOME STATEMENTS

Million of nominal Chilean pesos

	IQ 2007			IQ 2007			IVQ 2006			IQ 2006			% Change			% Change
	US$ thousands			Ch$ millions			Ch$ millions			Ch$ millions			IVQ 2006/2005			IVQ / IIIQ 2006
										(Reclassified)
Interest income and expense
Interest income		534,544			288,317			253,529			217,595			32.5	%		13.7	%
Interest expense		(245,518	)		(132,425	)		(116,630	)		(91,706	)		44.4	%		13.5	%
Net interest income		289,026			155,892			136,899			125,889			23.8	%		13.9	%
Provision for loan losses		(67,358	)		(36,331	)		(39,514	)		(25,471	)		42.6	%		(8.1	%)
Fees and income from services
Fees and other services income		102,657			55,370			51,910			46,540			19.0	%		6.7	%
Other services expense		(19,024	)		(10,261	)		(9,705	)		(8,210	)		25.0	%		5.7	%
Total fee income		83,633			45,109			42,205			38,330			17.7	%		6.9	%
Market related income
Net gain (loss) from trading and mark-to-market		28,722			15,492			22,772			43,308			(64.2	%)		(32.0	%)
Foreign exchange transactions,net		(9,756	)		(5,262	)		(4,460	)		(19,997	)		(73.7	%)		18.0	%
Total gains (losses) on financial transactions		18,967			10,230			18,312			23,311			(56.1	%)		(44.1	%)
Other operating income, net
Other operating income, net		(19,536	)		(10,537	)		(7,869	)		(7,770	)		35.6	%		33.9	%
Operating expenses
Personnel salaries and expenses		(69,830	)		(37,664	)		(48,118	)		(34,005	)		10.8	%		(21.7	%)
Administrative and other expenses		(53,032	)		(28,604	)		(29,943	)		(25,836	)		10.7	%		(4.5	%)
Depreciation and amortization		(18,231	)		(9,833	)		(10,000	)		(9,076	)		8.3	%		(1.7	%)
Total operating expenses		(141,092	)		(76,101	)		(88,061	)		(68,917	)		10.4	%		(13.6	%)
Other income and expenses
Nonoperating income, net		1,949			1,051			9,055			(11,016	)		(109.5	%)		(88.4	%)
Income attributable to investments in other companies		248			134			(82	)		239			(43.9	%)		(263.4	%)
Losses attributable to minority interest		(1,001	)		(540	)		(41	)		(65	)		730.8	%		1217.1	%
Total other income and expenses		1,196			645			8,932			(10,842	)		(105.9	%)		(92.8	%)
Gain (loss) from price-level restatement		(3,984	)		(2,149	)		2,480			2,781			—			—
Income before income taxes		160,851			86,758			73,384			77,311			12.2	%		18.2	%
Income taxes		(27,011	)		(14,569	)		(12,516	)		(12,877	)		13.1	%		16.4	%
Net income		133,839			72,189			60,868			64,434			12.0	%		18.6	%

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nomnal pesos

	2006												2007
	1Q			2Q			3Q			4Q			1Q			2Q	3Q	4Q
	Reclassified
ASSETS

CASH AND DUE FROM BANKS
Noninterest bearing		346,360			855,315			716,085			947,741			410,617
Interbank deposit-interest bearing		969,594			731,049			307,289			144,666			605,586
Total cash and due from banks		1,315,954			1,586,364			1,023,373			1,092,407			1,016,203

FINANCIAL INVESTMENTS
Trading		844,288			887,473			671,975			639,461			790,234
Available for sale		561,962			543,136			602,872			345,108			360,745
Held to maturity		0			0			0			0			0
Investments purchased under agreements to resell		33,036			134,425			14,422			30,807			46,692
Total financial investments		1,439,286			1,565,034			1,289,269			1,015,376			1,197,671

LOANS,NET
Commercial loans		3,958,263			4,006,219			4,082,361			4,048,221			4,172,835
Consumer loans		1,480,355			1,590,374			1,692,432			1,800,507			1,869,318
Mortgage loans (Financed with mortgage bonds)		585,309			555,077			525,963			485,849			456,482
Foreign trade loans		589,509			671,886			656,171			741,776			869,615
Interbank loans		195,798			146,725			134,609			151,491			168,554
Leasing		694,733			720,424			754,572			764,408			787,287
Other outstanding loans		2,199,034			2,343,218			2,519,305			2,681,461			2,775,762
Past due loans		100,382			88,559			88,863			92,559			97,937
Contingent loans		933,590			1,030,589			963,463			1,022,687			1,010,376
Reserve for loan losses		(149,112	)		(147,582	)		(160,879	)		(174,064	)		(200,021	)
Total loans, net		10,587,861			11,005,488			11,256,859			11,614,895			12,008,146

DERIVATIVES		305,712			325,163			305,641			372,688			377,628

OTHER ASSETS
Bank premises and equipment		219,510			221,255			222,441			231,360			222,228
Foreclosed assets		13,815			12,778			14,373			15,775			12,641
Investments in other companies		6,600			6,642			6,941			6,654			7,026
Central Bank acceptance		0			0			0						0
Assets to be leased		24,263			20,754			23,619			30,293			27,572
Other		557,395			463,448			483,377			463,991			664,310
Total other assets		821,582			724,877			750,751			748,072			933,777

TOTAL ASSETS		14,470,395			15,206,926			14,625,894			14,843,439			15,533,424

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nomnal pesos

	2006								2007
	1Q		2Q		3Q		4Q		1Q		2Q	3Q	4Q
	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
Bankers´ drafts and other deposits		736,502		794,842		787,028		819,583		867,199
		2,217,928		2,367,553		2,274,546		2,482,997		2,543,569

Interest bearing
Savings accounts and time deposits		6,264,072		6,645,164		6,816,812		6,909,335		7,280,989
Total deposits		8,482,000		9,012,717		9,091,358		9,392,332		9,824,557

OTHER INTEREST BEARING LIABILITIES

Chilean Central Bank borrowings
Credit lines for renegotiations of loans		6,120		5,752		5,487		5,080		4,605
Other Central Bank borrowings		124,311		166,067		184,147		134,417		237,241
Total Central Bank borrowings		130,431		171,819		189,634		139,497		241,846
Investments sold under agreements to repurchase		96,447		149,641		73,434		19,929		167,280
Mortgage finance bonds		621,469		592,837		560,334		530,206		509,697
Other borrowings
Bonds		448,214		562,778		559,165		565,653		562,285
Subordinated bonds		390,756		390,984		490,974		490,416		491,133
Borrowings from domestic financial institutions		0		3,590		3,777		0		0
Foreign borrowings		1,547,899		1,637,251		924,776		812,267		615,930
Other obligations		47,421		53,338		43,235		64,193		70,047
Total other borrowings		2,434,290		2,647,940		2,021,926		1,932,529		1,739,394
Total other interest bearing liabilities		3,282,637		3,562,237		2,845,328		2,622,161		2,658,217

DERIVATIVES		277,760		289,098		307,621		355,922		375,290

OTHER LIABILITIES
Contingent liabilities		934,634		1,031,766		964,924		1,024,048		1,012,880
Other		340,261		224,683		228,038		202,115		327,831
Minority interest		1,518		1,442		1,489		1,522		17,464
Total other liabilities		1,276,413		1,257,890		1,194,451		1,227,685		1,358,175

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

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		14,470,395		15,206,926		14,625,894		14,843,439		15,533,424

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS -2006-2007

Ch$ million nomnal pesos

	2006												2007
	1Q			2Q			3Q			4Q			1Q			2Q	3Q	4Q
	Reclassified
CONSOLIDADTE INCOME STATEMENT

INTEREST REVENUE AND EXPENSE
Interest revenue		217,595			341,190			356,538			253,529			288,317
Interest expense		(91,706	)		(167,941	)		(180,320	)		(116,630	)		(132,425	)
Net interest revenue		125,889			173,249			176,217			136,899			155,892
PROVISIONS FOR LOAN LOSSES		(25,471	)		(21,760	)		(36,277	)		(39,514	)		(36,331	)

FEES AND INCOME FROM SERVICES

Fees and other services income		46,540			49,418			50,458			51,910			55,370
Other services expenses		(8,210	)		(9,651	)		(8,211	)		(9,705	)		(10,261	)
Total fees and income from services, net		38,330			39,767			42,247			42,205			45,109

OTHER OPERATING INCOME
Net gains from trading and brokerage activities		43,308			39,291			(5,056	)		22,772			15,492
Foreign exchange transactions, net		(19,997	)		(29,750	)		5,499			(4,460	)		(5,262	)
Total Market related income		23,311			9,541			443			18,312			10,230
Other operating income (loss), net		(7,770	)		(9,133	)		(8,188	)		(7,869	)		(10,537	)
Total other operating income		15,541			408			(7,745	)		10,443			(307	)

OPERATING EXPENSES
Personnel salaries and expenses		(34,005	)		(39,132	)		(38,468	)		(48,118	)		(37,664	)
Administrative and other expenses		(25,836	)		(27,607	)		(27,563	)		(29,943	)		(28,604	)
Depreciation and amortization		(9,076	)		(9,888	)		(9,650	)		(10,000	)		(9,833	)
Total operating expenses		(68,917	)		(76,626	)		(75,680	)		(88,061	)		(76,101	)

OTHER INCOME AND EXPENSES
Non-operating income (loss), net		(11,017	)		(8,522	)		6,269			9,055			1,051
Income attributable to investments in other companies		240			409			219			(82	)		134
Losse s atributable to Minority interest		(65	)		(20	)		(28	)		(41	)		(540	)
Total other income and expenses		(10,842	)		(8,132	)		6,460			8,932			645

LOSS FROM PRICE-LEVEL RESTATEMENT		2,781			(10,247	)		(8,796	)		2,480			(2,149	)

INCOME BEFORE INCOME TAXES		77,311			96,658			96,427			73,384			86,758

Income taxes		(12,877	)		(16,314	)		(16,493	)		(12,516	)		(14,569	)

NET INCOME		64,434			80,345			79,934			60,868			72,189

Appendix
Client net interest income		124,580			137,291			137,636			141,799			150,071
Non-client net interest income		1,309			35,958			38,582			(4,900	)		5,821
Total net interest income		125,889			173,249			176,217			136,899			155,892

Client net interest income		124,580			137,291			137,636			141,799			150,071
Fee income		38,330			39,767			42,247			42,205			45,109
Total Client income		162,910			177,058			179,882			184,004			195,180

Net interest income		125,889			173,249			176,217			136,899			155,892
Fee income		38,330			39,767			42,247			42,205			45,109
Core revenues		164,219			213,016			218,464			179,104			201,001

Financial Ratios

	1Q05			2Q05			3Q05			4Q05			1Q06			2Q 06			3Q06			4Q 06			1Q07

Profitability
Return on average equity		20.5	%		25.7	%		26.8	%		21.7	%		22.8	%		28.7	%		27.5	%		18.3	%		22.4	%

Capital ratio
BIS		16.2	%		13.4	%		13.2	%		12.9	%		14.3	%		12.2	%		12.8	%		12.6	%		14.6	%

Earnings per Share
Net income (nominal Ch$mn)		53,960			62,101			66,433			57,216			64,434			80,345			79,934			60,868			72,189
Net income per share (Nominal Ch$)		0.29			0.33			0.35			0.30			0.34			0.43			0.42			0.32			0.38
Net income per ADS (US$)		0.51			0.59			0.69			0.61			0.67			0.81			1.81			0.63			0.74
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		1.38	%		1.29	%		1.17	%		1.05	%		0.93	%		0.79	%		0.78	%		0.79	%		0.80	%
Reserves for loan losses/past due loans		138.8	%		140.9	%		132.7	%		138.8	%		148.5	%		166.6	%		181.0	%		188.1	%		204.2	%

Efficiency
Operating expenses/operating income		41.8	%		39.1	%		39.9	%		45.6	%		38.3	%		35.9	%		35.9	%		46.5	%		37.9	%

Market information (period-end)
Stock price		18.6			17.9			22.3			21.6			22.05			20.84			23.5			24.8			25.9
ADR price		33.13			32.3			43.87			44.6			43.6			40.34			45.25			48.16			49.87
Market capitalization (US$mn)		6,009			5,858			7,957			8,089			7,908			7,317			8,207			8,735			9,045

Network
ATMs		1,187			1,225			1,322			1,422			1,395			1,443			1,479			1,588			1,635
Branches		316			327			335			352			361			367			368			397			410

Other Data
Exchange rate (Ch/US$) (period-end)		586.45			578.92			533.69			514.21			527.7			547.31			538.22			534.43			539.37

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:	May 10, 2007	By:	/s/ Gonzalo Romero
			Name: Gonzalo Romero
			Title: General Counsel