Edgar Filing: BANCO SANTANDER CHILE

Unassociated Document

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 August, 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 Half and Second Quarter 2007 Earnings

·	In 2Q 2007 net income increases 11.5% QoQ and 0.2% YoY totaling Ch$80,487 million (Ch$0.43 per share and US$0.84/ADR).

·	ROAE in 2Q 2007 reached 25.8% compared to 22.4% in 1Q 2007 and 28.7% in 2Q 2006.

·	Core revenues up 19.0% QoQ and 12.3% YoY.

·	Net interest margin reaches a record level of 5.5%, up 50 basis points YoY, as the better earnings mix enhances margins. Net interest income increased 23.3% QoQ and 10.9% YoY.

·	Net fee income increased 4.4% QoQ and 18.5% YoY driven by a rise in product usage and higher asset management fees.

·	Solid growth of client base and distribution network. The total number of clients increased 14.5% YoY to 2.6 million and the Bank opened 20 new branches in the 1H 2007, expanding its branch network to 417 offices.

·	Total loans increased 2.7% QoQ and 12.4% YoY. Consumer loans increased 18.8% YoY while residential mortgage loans grew 20.2% and lending to SMEs increased 18.7%.

·	The funding mix improved in the 2Q 2007. Total customer funds increased 3.8% QoQ and 16.1% YoY led by the 5.2% QoQ and 17.7% YoY rise in average non-interest bearing demand deposits. Assets under management in the Bank’s mutual fund subsidiary increased 12.9% QoQ and 42.2% YoY.

·	Efficiency ratio reached 36.0% in 2Q 2007.

·	Coverage of past due loans reached 200%. QoQ growth of adjusted provision expenses stabilizing. In 2Q 2007 YoY growth of provision expenses reached 107.8%.

Net income increased 5.5% in 1H 2007 compared to 1H 2006 and totaled Ch$152,676 million (Ch$0.81/share and US$1.60/ADR). Growth was led by a 16.7% increase in core revenues. The net interest margin in 1H 2007 reached 5.1% compared to 4.7% in 1H 2006. ROAE was 24.1% and Efficiency improved to 36.9% in 1H 2007.

Investor Relations Department

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

email: rmorenoh@santander.cl

Santiago, Chile, July 27, 2007. Banco Santander Chile (NYSE: SAN) announced today its unaudited results for the first half and second quarter of 2007. These results are reported on a consolidated basis in accordance with Chilean GAAP¹ ^{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 used for translating Ch$ to US$ was Ch$527.55 per US$ dollar.
All
figures presented are in nominal terms. Historical figures are not adjusted
by
inflation.} in nominal Chilean pesos.

In the second quarter of 2007 net income totaled Ch$80,487 million (Ch$0.43 per share and US$0.84/ADR), increasing 11.5% compared to 1Q 2007 (from now on QoQ) and 0.2% compared to 2Q 2006 (from now on YoY). Core revenues (net interest income and fees) increased 19.0% QoQ and 12.3% YoY, as the Bank continued to show strong results in its retail banking business.

Strong growth of core revenues and solid margin expansion

(Core revenues*, Ch$ million and Net interest margin, %)

* Core revenues: Net interest income + fees

In the quarter the Bank focused on increasing its margins and profitability by raising its profitability targets, taking into consideration the different risk levels of the segments attended. As a consequence, Net interest income increased 23.3% QoQ and 10.9% YoY driven by solid margin expansion, the higher growth of retail lending activities and the positive evolution of non-interest bearing liabilities.

In 2Q 2007 the net interest margin reached a record level of 5.5%, increasing 110 basis points QoQ and 50 basis points YoY. Total loans increased 2.7% QoQ and 12.4% YoY, with stronger growth in retail segments. Consumer loans expanded 1.1% QoQ and 18.8% YoY. Residential mortgage loans increased 4.5% QoQ and 20.2% YoY. Commercial loans increased 1.2% QoQ and 5.4% YoY, led by an increase in lending to high yielding Small and Mid-sized companies (SMEs).

1 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 used for translating Ch$ to US$ was Ch$527.55 per US$ dollar. All figures presented are in nominal terms. Historical figures are not adjusted by inflation.

Investor Relations Department

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

email: rmorenoh@santander.cl

The funding mix improved in the 2Q 2007. During the quarter the economy grew at a faster pace than expected, fuelling an increase in inflation and a rise in short-term interest rates. Despite rising rates, the average balance of non-interest bearing checking accounts increased 5.2% QoQ and 17.7% YoY.

Net fee income increased 4.4% QoQ and 18.5% YoY in 2Q 2007. Insurance brokerage fees increased 3.4% QoQ and 32.8% YoY, reflecting the strength of the Bank’s bancassurance business. Assets under management grew 12.9% QoQ and 42.2% YoY, fuelling asset management fee growth which expanded 17.3% QoQ and 46.1% YoY in the quarter. Credit card fees increased 3.1% QoQ and 13.7% YoY, as usage of credit cards continues to expand. ATM fees increased 2.2% QoQ and 11.2% YoY in line with the growth of the Bank’s ATM network.

In 2Q 2007, the Bank’s net provisions expenses increased 24.5% QoQ and 107.8% YoY. The QoQ rise in provision expense was mainly due to the one-time net pretax gain of Ch$7,754 million recognized in 1Q 2007 due to the sale of charged-off loans, the implementation of an improved provisioning model for consumer loans and extraordinary provisions in the middle-market. On an adjusted basis, provision expense increased 2.6% QoQ, mainly due to higher provisions in the middle-market. Net provisions in retail banking, on an adjusted basis, decreased 3.3% QoQ. As mentioned in previous releases, provisions were expected to increase 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. As a consequence, the Bank continues to display sound asset quality indicators. Coverage of past due loans reached 200% at June 2007. The past due loan ratio as of June 2007 reached 0.84% compared to 0.80% as of March 2007 and 0.79% in 2Q 2007. The expected loan loss ratio (reserves for loan losses over total loans) remained steady at 1.68% compared to 1.64% in 1Q 2007.

Costs remain under control. In 2Q 2007 operating expenses increased 9.4% YoY. The efficiency ratio reached 36.0% in 2Q 2007, the lowest efficiency ratio among the leading banks in Chile and Latin America.

Net income increased 5.5% in 1H 2007 compared to 1H 2006 and totaled Ch$152,676 million (Ch$0.81/share and US$1.60/ADR). Growth was led by a 16.7% increase in core revenues. The net interest margin in 1H 2007 reached 5.1% compared to 4.7% in 1H 2006. ROAE was 24.1% in 1H 2007 and the efficiency ratio was 36.9%. The ROAE for the Chilean banking system in the same period was 16.3% and the efficiency ratio reached 51.2%. Net income in the Chilean banking system increased 0.2% in 1H 2007 compared to 1H 2006 (a decrease of 2.2%, excluding Santander).

Investor Relations Department

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

email: rmorenoh@santander.cl

Banco Santander Chile	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Net interest income		192,163			155,892			173,249			10.9	%		23.3	%
Fees and income from services		47,107			45,109			39,767			18.5	%		4.4	%
Core revenues		239,270			201,001			213,016			12.3	%		19.0	%
Total provisions, net of recoveries		(45,214	)		(36,331	)		(21,760	)		107.8	%		24.5	%
Gains losses on financial transactions		4,539			10,230			9,541			(52.4	%)		(55.6	%)
Other operating income, net		(11,298	)		(10,537	)		(9,133	)		23.7	%		7.2	%
Operating expenses		(83,818	)		(76,101	)		(76,626	)		9.4	%		10.1	%
Income before income taxes		94,449			86,758			96,658			(2.3	%)		8.9	%
Net income		80,487			72,189			80,345			0.2	%		11.5	%
Net income/share (Ch$)		0.43			0.38			0.43			0.2	%		11.5	%
Net income/ADR (US$)¹		0.84			0.74			0.81			3.9	%		14.0	%
Total loans		12,541,155			12,208,166			11,153,071			12.4	%		2.7	%
Customer funds		12,569,958			12,108,365			10,825,912			16.1	%		3.8	%
Shareholders’ equity		1,228,053			1,317,185			1,084,985			13.2	%		(6.8	%)
Client margin²		5.2	%		5.1	%		5.1	%
Net interest margin		5.5	%		4.4	%		5.0	%
Efficiency ratio		36.0	%		37.9	%		35.9	%
Return on average equity³		25.8	%		22.4	%		28.7	%
PDL / Total loans		0.84	%		0.80	%		0.79	%
Coverage ratio of PDLs		199.8	%		204.2	%		166.6	%
Risk index⁴		1.68	%		1.64	%		1.32	%
BIS ratio		13.0	%		14.6	%		12.2	%
Branches⁵		417			410			367
ATMs		1,744			1,635			1,443
Employees		8,913			8,691			7,782

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.

Investor Relations Department

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

email: rmorenoh@santander.cl

INTEREST EARNING ASSETS

Strong focus on profitability

Interest Earning Assets	Quarter ended,						% Change
(Ch$ million)	June 30, 2007		March 31, 2007		June 30, 2006		June 2007/2006			June / March 2007
Consumer loans		1,889,268		1,869,318		1,590,374		18.8	%		1.1	%
Residential mortgage loans*		3,024,742		2,894,243		2,516,791		20.2	%		4.5	%
Commercial loans		4,221,007		4,172,835		4,006,219		5.4	%		1.2	%
Commercial mortgage loans**		155,827		168,704		184,484		(15.5	%)		(7.6	%)
Foreign trade loans		663,313		869,615		671,886		(1.3	%)		(23.7	%)
Leasing		810,598		787,287		720,424		12.5	%		3.0	%
Factoring		175,780		125,144		162,901		7.9	%		40.5	%
Other outstanding loans		29,424		44,153		34,118		(13.8	%)		(33.4	%)
Contingent loans		1,115,134		1,010,376		1,030,589		8.2	%		10.4	%
Interbank loans		350,393		168,554		146,725		138.8	%		107.9	%
Past due loans		105,668		97,937		88,559		19.3	%		7.9	%
Total loans		12,541,154		12,208,166		11,153,070		12.4	%		2.7	%
Total financial investments		1,374,164		1,197,671		1,565,034		(12.2	%)		14.7	%
Total interest-earning assets		13,915,319		13,405,837		12,718,105		9.4	%		3.8	%

* 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 2Q 2007, total loans increased 2.7% QoQ and 12.4% YoY. In the quarter, the Bank focused on increasing its margins and profitability by raising its profitability targets, taking into consideration the different risk levels of the segments attended. As a consequence, Net interest income increased 23.3% QoQ and 10.9% YoY driven mainly by solid margin expansion and higher retail lending activities.

Consumer loans expanded 1.1% QoQ and 18.8% YoY. Market share in consumer loans reached 26.4% as of June 2007 and increased 8 basis points YoY. Residential mortgage lending increased 4.5% QoQ and 20.2% YoY. Market share in residential mortgage lending reached 25.6% as of June 2007, rising 18 basis points YoY. Despite rising long-term interest rates demand for residential mortgage remains strong. The risk index of residential mortgage loans is 0.25% as of June 30, 2007, down from 0.28% at June 30, 2006.

Commercial loans increased 1.2% QoQ and 5.4% YoY led by an increase in lending to Small and Mid-sized companies (SMEs). This was also reflected in the growth of leasing and factoring operations that are mainly driven by the SME and middle market segments. The Bank also revamped its pricing structure among SMEs and continued with the policy of focusing on allocating efficiently its capital to the most profitable uses in Corporate Banking and stressing the growth of non-lending products to this segment. Market share in lending to companies, as defined by the Superintendence of Banks, decreased 164 basis points YoY to 19.8%. The 23.7% QoQ decrease in foreign trade loans was due in part to large one-time short-term trade operations realized in 1Q 2007. The appreciation 2.2% appreciation of the peso also produced a translation loss in this loan product. Total loan market share decreased 103 basis points YoY and reached 21.8% as of June 2007, reflecting the growth pattern of the Bank in order to increase its profitability.

Investor Relations Department

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

email: rmorenoh@santander.cl

Loans by business segment*	Quarter ended,						% Change
(Ch$ million)	June 30, 2007		March 31, 2007		June 30, 2006		June 2007/2006			June / March 2007
Total loans to individuals		5,376,224		5,214,822		4,611,707		16.6	%		3.1	%
SMEs		1,905,480		1,864,258		1,604,724		18.7	%		2.2	%
Total retail lending		7,281,704		7,079,080		6,216,431		17.1	%		2.9	%
Institutional lending		191,410		192,168		196,268		(2.5	%)		(0.4	%)
Middle-Market & Real estate		2,302,678		2,348,975		2,249,668		2.4	%		(2.0	%)
Corporate		1,280,267		1,376,704		1,310,135		(2.3	%)		(7.0	%)

*Excludes contingent loans and interbank loans

Retail lending expanded 2.9% QoQ and 17.1% YoY. Loans to individuals increased 3.1% QoQ and 16.6% YoY. Loans to SMEs increased 2.2% QoQ and 18.7% YoY.

Lending to the middle market segment decreased 2.0% 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.

Loans in corporate banking decreased 7.0% QoQ and decreased 2.3% YoY. This decline was mainly due to the reduction in foreign trade loans and translation losses produced by the appreciation of the peso in the quarter. Foreign trade loans are somewhat volatile on a quarter to quarter basis in this segment, as a few customers concentrate a large percentage of total exports, especially in the mining sector.

Investor Relations Department

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

email: rmorenoh@santander.cl

CUSTOMER FUNDS

Good growth of customer funds. Funding mix improves

Funding	Quarter ended,						Change %
(Ch$ million)	June 30, 2007		March 31, 2007		June 30, 2006		June 2007/2006			June / March 2007
Non-interest bearing deposits		2,649,259		2,543,569		2,367,553		11.9	%		4.2	%
Time deposits and savings accounts		7,343,069		7,280,989		6,645,164		10.5	%		0.9	%
Total customer deposits		9,992,328		9,824,558		9,012,717		10.9	%		1.7	%
Mutual funds		2,577,630		2,283,807		1,813,195		42.2	%		12.9	%
Total customer funds		12,569,958		12,108,365		10,825,912		16.1	%		3.8	%

Total customer funds increased 3.8% QoQ and 16.1% YoY. During the quarter the economy grew at a faster pace than expected, fuelling a rise in inflation and a rise in short-term interest rates. As a result, the overnight reference rate set by the Central Bank was raised 25 basis points to 5.25% in July 2007. Despite rising rates, non-interest bearing liabilities increased 4.2% QoQ and 11.9% YoY. The average balance of non-interest bearing checking accounts increased 5.2% QoQ and 17.7% YoY.

Total quarterly average non-interest bearing demand deposits

Quarter ended,

Change %

(Ch$ million)

June 30,

2007

March 31,

2007

June 30,

2006

June

2007/2006

June / March 2007

Total

2,185,216

2,077,301

1,856,259

17.7

5.2

Time deposits increased 0.9% QoQ and 10.5% YoY. The Bank has been issuing senior bonds to fund lending, especially residential mortgage loans, in order to minimize interest rate risk in a tightening interest rate environment. In the quarter the balance of senior bonds increased 32.9% as the Bank issued US$350 million in local senior bonds in the quarter. Santander has the best risk ratings for any private issuer in Latam, which have been recently up-graded.

Long-term funding	Quarter ended,						Change %
(Ch$ million)	June 30, 2007		March 31, 2007		June 30, 2006		June 2007/2006			June / March 2007
Bond		747,098		562,285		562,778		32.8	%		32.9	%
Sub-bonds		477,041		491,133		390,984		22.0	%		(2.9	%)
Total		1,224,139		1,053,418		953,762		28.3	%		16.2	%

Assets under management in the Bank’s mutual fund subsidiary increased 12.9% QoQ and 42.2% YoY. The strength of the local and international stock markets boosted investment levels and the value of funds under management in the quarter.

Investor Relations Department

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

email: rmorenoh@santander.cl

NET INTEREST INCOME

Record net interest margin driven by improved asset mix and higher inflation

Net Interest Income	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Client net interest income ^1,2		156,852			150,071			137,291			14.2	%		4.5	%
Non-client net interest income ^1,3		35,311			5,821			35,958			(1.8	%)		506.6	%
Net interest income		192,163			155,892			173,249			10.9	%		23.3	%
Average interest-earning assets		14,001,833			14,204,463			13,928,060			0.5	%		(1.4	%)
Average loans		12,043,872			11,686,106			10,672,363			12.9	%		3.1	%
Net interest margin ^4,5		5.5	%		4.4	%		5.0	%
Client margin ⁴		5.2	%		5.1	%		5.1	%
Avg. equity + non-interest bearing demand deposits / Avg. interest earning assets		24.5	%		23.7	%		20.5	%
Quarterly inflation rate ⁶		1.37	%		0.20	%		1.32	%
Avg. overnight interbank rate (nominal)		5.08	%		5.09	%		4.96	%
Avg. 10 year Central Bank yield (real)		2.90	%		2.69	%		3.18	%

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 2Q 2007 increased 10.9 YoY and 23.3% QoQ. In 2Q 2007 the net interest margin reached a record level of 5.5%, increasing 110 basis points QoQ and 50 basis points YoY, reflecting the growth of retail lending activities, the positive evolution of non-interest bearing liabilities and the constant focus of adequately allocating capital to the most productive use.

Client net interest income. Client net interest income - which is net interest income (and margins) generated by our commercial areas - increased 14.2% YoY and 4.5% QoQ. This growth was led by the 3.1% QoQ and 12.9% YoY increase in average loans. Client net interest margins increased 10 basis points QoQ and YoY to 5.2%. The ratio of average non-interest bearing liabilities to interest earning asset reached 24.5% in 2Q 2007 compared to 23.7% in 1Q 2007 and 20.5% in 2Q 2006. In the quarter, the Bank focused on increasing its margins and profitability by raising its profitability targets, taking into consideration the different risk levels of the segments attended. The growth of retail lending activities and the positive evolution of non-interest bearing liabilities were also factors that explain the growth of client net interest income and margins in the period.

Investor Relations Department

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

email: rmorenoh@santander.cl

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$35,311 million decreasing 1.8% YoY and increasing 506.6% QoQ. The QoQ rise was mainly due to the higher inflation rate in 2Q 2007, +1.37%, compared to 0.20% in 1Q 2007 and 1.32% in 2Q 2006. This had a positive effect over margins due to the positive gap between assets and liabilities denominated in Unidades de Fomento (UF, an inflation-linked currency). The UF gap results from the Bank’s assets denominated in UF funded through deposits denominated in nominal pesos and free funds. This positive gap is in part hedged with peso/UF derivatives, the results of which are recognized in the net gains from financial transactions. This is also partially offset by the loss from price level restatement.

PROVISION FOR LOAN LOSSES

Provision expense stabilizing in the retail segment. Coverage ratio reaches 200%

Provision for loan losses	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Provisions		(11,556	)		(26,551	)		1,178			-	%	(56.5%)
Charge-offs		(47,965	)		(46,872	)		(34,995	)		37.1	%	2.3%
Gross provisions and charge-offs		(59,521	)		(73,423	)		(33,817	)		76.0	%	(18.9%)
Adjusted gross provisions and charge-offs*		(59,521	)		(57,603	)		(33,817	)		76.0	%	3.3%
Loan loss recoveries		14,307			37,092			12,057			18.7	%	(61.4%)
Adjusted loan loss recoveries*		14,307			13,518			12,057			18.7	%	5.8%
Net provisions		(45,214	)		(36,331	)		(21,760	)		107.8	%	24.5%
Net provisions adjusted*		(45,214	)		(44,085	)		(21,760	)		107.8	%	2.6%
Total loans		12,541,154			12,208,167			11,153,070			12.4	%	2.7%
Total reserves (RLL)		211,113			200,021			147,583			43.0	%	5.5%
Past due loans (PDL)**		105,668			97,937			88,559			19.3	%	7.9%
Gross provision expense / loans***		1.90	%		2.41	%		1.21	%
Net provision expense / loans ***		1.44	%		1.19	%		0.78	%
PDL/Total loans		0.84	%		0.80	%		0.79	%
Expected loss (RLL / loans)		1.68	%		1.64	%		1.32	%
RLL / Past due loans		199.8	%		204.2	%		166.6	%

* See text and footnote 3

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

*** Annualized

In 2Q 2007, the Bank’s net provisions expenses increased 24.5% QoQ and 107.8% YoY. On an adjusted basis, provision expense increased 2.6% QoQ mainly due to higher provisions in the middle-market. This segment, after an extended period of very low provisioning levels due to a strong operational environment, is returning to a more normalized provision schedule.

3 In 1Q 2007 the Bank recognized an extraordinary provision expense of Ch$13,379 million mainly due to implementation of an improved provisioning model for consumer loans and Ch$2,441 in provisions in the middle-market segment. In the quarter, the Bank also recognized a gain of Ch$23,574 million in one-time recoveries from the sale of charged-off loans. All together, this resulted in a one-time net pretax gain of Ch$7,754 million recognized in 1Q 2007.

Investor Relations Department

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

email: rmorenoh@santander.cl

Net provision expense by segment	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Retail banking*		43,102			44,575			21,313			102.2	%		(3.3	%)
Middle-market		1,792			(1,042	)		443			304.1	%		--	%
Corporate banking		(32	)		41			29			--	%		--	%
Leasing subsidiary		(109	)		(84	)		(377	)		(71.1	%)		30.5	%
Total**		44,753			43,490			21,408			109.0	%		2.9	%

* Includes individuals and SMEs. ** Excludes one-time effects in 1Q 2007 and provisions over repossessed assets

The 107.8% YoY increase in provision expense in 2Q 2007 was mainly due to higher provisioning in retail banking (+102.2%). This was mainly due to the growth of lending to higher yielding and riskier retail segments. As mentioned in previous releases, provisions were expected to increase 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. However, net provisions in retail banking, on an adjusted basis, decreased 3.3% QoQ.

Loan loss recoveries in 1Q 2007 include the one-time pretax gain of Ch$23,574 million from the sale of charged-off loans.³This explains the 61.4% QoQ decrease in loan loss recoveries during 2Q 07. On an adjusted basis, loan loss recoveries increased 18.7% YoY and 5.8% QoQ in 2Q 2007. This reflects, in part, the successful re-organization of the collection department commenced in the second half of 2006.

As a consequence of the strengthening of the Bank credit policies and processes, the Bank continues to display sound asset quality indicators. Coverage of past due loans reached 200% at June 2007. The past due loan ratio as of June 2007 reached 0.84% compared to 0.80% as of March 2007 and 0.79% in 2Q 2007. The expected loan loss ratio (reserves for loan losses over total loans) remained steady at 1.68% compared to 1.64% in 1Q 2007.

Going forward, the Bank expects asset quality indicators to remain sound, but as the retail banking portfolio increases and provisioning levels in the middle market return to historical levels, provision expense and the risk index could continue to rise.

Investor Relations Department

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

email: rmorenoh@santander.cl

FEE INCOME

Growth in client base, product usage and higher asset management volume boosts fees

Fee income	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Checking accounts		13,822			13,280			13,370			3.4	%		4.1	%
Adm. & collection of insurance policies		7,644			7,052			5,495			39.1	%		8.4	%
Mutual fund services		7,145			6,093			4,889			46.1	%		17.3	%
Credit cards		5,046			4,892			4,438			13.7	%		3.1	%
Automatic teller cards		3,959			3,873			3,562			11.2	%		2.2	%
Insurance brokerage		3,027			2,927			2,279			32.8	%		3.4	%
Stock brokerage		1,920			1,984			237			711.3	%		(3.2	%)
Santander SuperCaja		734			505			--			--	%		45.3	%
Other product and services		3,811			4,503			5,498			(30.7	%)		(15.4	%)
Total fee income, net		47,107			45,109			39,767			18.5	%		4.4	%
Fees / operating expense		56.2	%		59.3	%		51.9	%

Net fee income increased 4.4% QoQ and 18.5% YoY in 2Q 2007. The Bank continues to expand its client base, cross-selling and product usage, especially in retail banking along with positive results from asset management. The total number of clients increased 14.5% YoY to 2.6 million.

Insurance brokerage fees increased 3.4% QoQ and 32.8% YoY in 2Q 2007. Fees from the administration and collection of insurance policies increased 8.4% QoQ and 39.1% YoY in the same period. These high growth rates reflect the strength of the Bank’s distribution network in distributing insurance products and collecting insurance premiums.

Asset management has been an important contributor to fee income in 2007. Fees from mutual fund management increased 17.3% QoQ and 46.1% YoY in 2Q 2007. Assets under management totaled Ch$2,577,630 million and increased 42.2% YoY and 12.9% QoQ, fuelling asset management fee growth.

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 17.9% YoY as of June 2007. In Santander Banefe, the amount of cross-sold clients (clients that uses at least 2 or more other products) rose 25.2% YoY as of June 2007.

Investor Relations Department

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

email: rmorenoh@santander.cl

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 17.9% YoY in 2Q 2007. Market share in checking accounts reached 27.7% as of May 2007, the latest figure available, compared to 26.0% as of May 2006. In this period, the Bank’s opened 43.6% of all new account opened in the Chilean market. As a result, in 2Q 2007 fees from checking accounts increased 3.4% YoY and 4.1% QoQ. This was partially offset by a regulatory change introduced in the beginning of year that prohibited certain fees charged to checking account holders related to bad check clearance.

Credit card fees increased 3.1% QoQ and 13.7% YoY in 2Q 2007. According to information published by Transbank, the industry’s credit card processor, as of June 2007 purchases with Santander credit cards in monetary terms were growing 17.3% YoY in real terms compared to 16.3% for the market. Market share in terms of purchases reached 35.4% as of June 2007 compared to 35.1% as of June 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 2.2% QoQ and 11.2% YoY in line with the expansion of the Bank’s ATM network. As of June 2007 the Bank had a total of 1,744 ATMs, the largest network in Chile, which represents a 20.9% YoY increase. An extensive ATM network is key to this process.

Investor Relations Department

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

email: rmorenoh@santander.cl

Investing to sustain growth momentum in retail banking

* Including Santander SuperCaja offices

The fees collected by the subsidiary Santander Servicios de Recaudación y Pagos Ltda (Santander SuperCaja) continued to grow after the successful launch of this new branch format for payment services. These payment centers will operate seven days a week and total 26 branches. In 2Q 2007 SuperCaja generated fees of Ch$734 million in 2Q 2007, 45.3% higher than in 1Q 2007.

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 50.5% 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 711.3% YoY and decreased 3.2% QoQ in 2Q 2007.

OPERATING EXPENSES AND EFFICIENCY

Efficiency ratio reaches 36.0% in 2Q 2007

Operating Expenses	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Personnel expenses		42,879			37,664			39,132			9.6	%		13.8	%
Administrative expenses		30,354			28,604			27,607			10.0	%		6.1	%
Depreciation and amortization		10,585			9,833			9,888			7.1	%		7.6	%
Operating expenses		83,818			76,101			76,626			9.4	%		10.1	%
Efficiency ratio*		36.0	%		37.9	%		35.9	%

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

The Bank continues to have a world class efficiency ratio. In 2Q 2007, operating expenses increased 9.4% YoY. The efficiency ratio reached 36.0% in 2Q 2007 and 36.9% in the first half of 2007. Personnel expenses increased 9.6% YoY. Headcount has increased 14.5% in the same period, totaling 8,913 employees. Santander SuperCaja and the merger of the stock brokerages have added 200 new employees to headcount. The 10.0% YoY increase in administrative expenses was directly linked to the higher commercial activities and the larger distribution network.

Investor Relations Department

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

email: rmorenoh@santander.cl

The 10.1% QoQ increase in operating expenses was mainly due to the 13.8% QoQ increase in personnel expenses, which was mainly due to seasonal factors. 1Q personnel expenses are seasonally lower than the rest of the year.

GAINS (LOSSES) ON FINANCIAL TRANSACTIONS

Gains and losses on financial transactions	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Net gain (loss) from trading and mark-to-market		(628	)		15,492			39,291			--	%		--	%
Foreign exchange transactions, net		5,167			(5,262	)		(29,750	)		(117.4	%)		(198.2	%)
Gains (losses) on financial transactions⁴		4,539			10,230			9,541			(52.4	%)		(55.6	%)
Adjusted Gains (losses) on financial transactions		4,539			10,230			2,452			85.1	%		(55.6	%)
Quarterly inflation rate*		1.37	%		0.20	%		1.32	%
Avg. overnight interbank rate (nominal)		5.08	%		5.09	%		4.96	%
Avg. 10 year Central Bank yield (real)		2.90	%		2.69	%		3.18	%

*Quarterly variation of the Unidad de Fomento (UF)

In 2Q 2007 the gain on financial transactions totaled Ch$4,539 million down 55.6% QoQ and 52.4% YoY.

The most important factors that drives this line item are: (1) the quarterly inflation rate, which impact the results from the Bank’s peso/UF hedging; (2) the movement of long-term rates, which affects the mark-to-market of the fixed income trading portfolio; (3) the net results from proprietary trading (fixed income, FX and equity); (4) the results from market making and, (5) the sale of derivatives to clients. In June 2006, and following the guidelines of the Superintendency of Banks, new accounting standards were adopted for the valuation of financial instruments and derivatives, as well as new guidelines for hedge accounting. This resulted in a one-time gain in the month of June 2006 of Ch$7,089 million. Excluding this effect, the gains and losses on financial transactions increased 85.1% YoY in 2Q 2007.

The 55.6% QoQ decline in gains from financial transactions in 2Q 2007 was mainly due to the higher inflation rate in 2Q 2007 compared to 1Q 2007. In order to keep interest rate risk in line with regulatory limits, the Bank hedges part of the UF gap with derivatives. The results produced by this hedge are recognized in this line item. All-in the Bank benefits from a higher inflation scenario due to the positive gap between assets and liabilities denominated in UFs.

4 For analysis purposes only, we have created the line item: Gains (losses) on financial transactions. This is the sum of the net gain (loss) from trading, the mark-to-market of financial investment and derivatives, and foreign exchange transactions. The results 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.

Investor Relations Department

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

email: rmorenoh@santander.cl

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

Other Income and Expenses	Quarter									Change %
(Ch$ million)	2Q 2007			1Q 2007			2Q 2006			2Q 07/ 2Q 06			2Q / 1Q 2007
Sales force expense		(4,934	)		(4,703	)		(4,121	)		19.7	%		4.9	%
Other operating expenses, net		(6,364	)		(5,834	)		(5,012	)		27.0	%		9.1	%
Total other operating loss, net		(11,298	)		(10,537	)		(9,133	)		23.7	%		7.2	%

Non-operating income, net		5,613			1,051			(8,522	)		(165.9	%)		434.1	%
Income attributable to investments in other companies		(728	)		134			409			(277.8	%)		(643.2	%)
Losses attributable to minority interest		(282	)		(540	)		(20	)		1346.2	%		(47.8	%)
Total non-operating results, net		4,603			645			(8,132	)		(156.6	%)		613.7	%
Price level restatement		(13,633	)		(2,149	)		(10,247	)		33.0	%		534.4	%
Income tax		(13,962	)		(14,569	)		(16,314	)		(14.4	%)		(4.2	%)

Other operating results, net totaled a loss of Ch$11,299 million, increasing 7.2% QoQ and 23.7% YoY in 2Q 2007. Total sales force expenses reached Ch$4,934 million in 2Q 2007 increasing 4.9% QoQ and 19.7% YoY, reflecting the strong commercial efforts being made in retail banking. Other net operating expenses increased 9.1% QoQ and 27.0% YoY mainly due to higher customer service expenses and expenses relating to the promotion of our credit card business.

Non-operating income, net totaled a gain of Ch$4,603 million in 2Q 2007 compared to a gain of Ch$645 million in 1Q 2007 and a loss of Ch$8,132 million in 2Q 2006. This difference is mainly due to the reversal of Ch$5,434 million non-credit related contingencies in 2Q 2007. 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$13,633 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 +1.37% in 2Q 2007 compared to 1.32% in 2Q 2006 and 0.20% in 1Q 2007 explains the variation of this result.

Investor Relations Department

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

email: rmorenoh@santander.cl

SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL

ROAE in 2Q 2007 reaches 25.8% with a solid BIS ratio of 13.0%

Shareholders’ equity	Quarter ended									Change %
(Ch$ million)	June 30, 2007			March 31, 2007			June 30, 2006			June 2007/2006			June / March 2007
Total capital and reserves		1,079,822			1,247,268			952,342			13.4	%		(13.4	%)
Unrealized gain (loss) available for sale portfolio		(4,445	)		(2,272	)		(12,136	)		(63.4	%)		95.6	%
Net Income		152,676			72,189			144,779			5.5	%		111.5	%
Total shareholders’ equity		1,228,053			1,317,185			1,084,985			13.2	%		(6.8	%)
Return on average equity (ROAE)		25.8	%		22.4	%		28.7	%

Shareholders’ equity totaled Ch$1,228,053 million as of June 30, 2007. The Bank paid during 2Q 2007 its annual dividend of Ch$0.98504643 per share, corresponding to 65% of 2006 net income and was 19.1% higher than the dividend paid in 2006. This explains the 13.4% decrease in the Bank’s capital QoQ.

The Bank’s ROAE in 2Q 2007, reached 25.8%. The Bank’s BIS ratio as of March 31, 2007 was 14.6% with a Tier I ratio of 10.6%. The dividend paid explains this lower level.

Capital Adequacy	Quarter ended									Change %
(Ch$ million)	June 30, 2007			March 31, 2007			June 30, 2006			June 2007/2006			June / March 2007
Tier I		1,075,377			1,244,996			940,206			14.4	%		(13.6	%)
Tier II		467,469			470,098			372,999			25.3	%		(0.6	%)
Regulatory capital		1,542,846			1,715,095			1,313,205			17.5	%		(10.0	%)
Risk weighted assets		11,851,230			11,741,425			10,769,595			10.0	%		0.9	%
Tier I ratio		9.1	%		10.6	%		8.7	%
BIS ratio		13.0	%		14.6	%		12.2	%

Investor Relations Department

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

email: rmorenoh@santander.cl

INSTITUTIONAL BACKGROUND

As per latest public records published by the Superintendence of Banks for June 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 is the third largest banking group in Portugal. 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 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 $2.866 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

Investor Relations Department

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

email: rmorenoh@santander.cl

BANCO SANTANDER - CHILE, AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions of nominal Chilean pesos)


	30-Jun		30-Jun		31-Mar		30-Jun		% Change		% Change
	2007		2007		2007		2006		June 2007 / 2006		June / March 2007
	US$ thousands		Ch$ millions		Ch$ millions		Ch$ millions
A S S E T S

Cash and due from banks
Noninterest bearing	1,403,285		740,303		410,617		855,315		(13.4	%)	80.3	%
Interbank deposits-interest bearing	552,236		291,332		605,586		731,049		(60.1	%)	(51.9	%)
Total cash and due from banks	1,955,521		1,031,635		1,016,203		1,586,364		(35.0	%)	1.5	%

Financial investments
Trading	1,268,240		669,060		790,234		839,973		(20.3	%)	(15.3	%)
Available for sale	1,277,589		673,992		360,745		543,136		24.1	%	86.8	%
Held to maturity	0		0		0		0		--	%	--	%
Investment collateral under agreements to repurchase	58,975		31,112		46,692		181,925		(82.9	%)	(33.4	%)
Total financial investments	2,604,804		1,374,164		1,197,671		1,565,034		(12.2	%)	14.7	%

Loans, net
Commercial loans	8,001,151		4,221,007		4,172,835		4,006,219		5.4	%	1.2	%
Consumer loans	3,581,211		1,889,268		1,869,318		1,590,374		18.8	%	1.1	%
Mortgage loans (Financed with mortgage bonds)	814,746		429,819		456,482		555,077		(22.6	%)	(5.8	%)
Foreign trade loans	1,257,346		663,313		869,615		671,886		(1.3	%)	(23.7	%)
Interbank loans	664,189		350,393		168,554		146,725		138.8	%	107.9	%
Leasing	1,536,533		810,598		787,287		720,424		12.5	%	3.0	%
Other outstanding loans	5,603,175		2,955,955		2,775,762		2,343,218		26.1	%	6.5	%
Past due loans	200,299		105,668		97,937		88,559		19.3	%	7.9	%
Contingent loans	2,113,798		1,115,134		1,010,376		1,030,589		8.2	%	10.4	%
Reserves	(400,176	)	(211,113	)	(200,021	)	(147,583	)	43.0	%	5.5	%
Total loans, net	23,372,272		12,330,042		12,008,145		11,005,488		12.0	%	2.7	%

Derivatives	795,028		419,417		377,628		325,163		29.0	%	11.1	%

Other assets
Bank premises and equipment	430,153		226,927		222,228		221,255		2.6	%	2.1	%
Foreclosed assets	21,272		11,222		12,641		12,778		(12.2	%)	(11.2	%)
Investments in other companies	10,818		5,707		7,026		6,642		(14.1	%)	(18.8	%)
Assets to be leased	76,336		40,271		27,572		20,754		94.0	%	46.1	%
Other	1,466,582		773,696		664,310		463,448		66.9	%	16.5	%
Total other assets	2,005,161		1,057,823		933,777		724,877		45.9	%	13.3	%

TOTAL ASSETS	30,732,786		16,213,081		15,533,424		15,206,926		6.6	%	4.4	%

BANCO SANTANDER - CHILE, AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions of nominal Chilean pesos)


		30-Jun		30-Jun		31-Mar		30-Jun	% Change		% Change
		2007		2007		2007		2006	June 2007 / 2006		June / March 2007
LIABILITIES AND SHAREHOLDERS' EQUITY	$	US thousands	$	Ch millions	$	Ch millions	$	Ch millions

Deposits

Current accounts		3,262,868		1,721,326		1,676,370		1,572,712	9.4	%	2.7	%
Bankers drafts and other deposits		1,758,948		927,933		867,199		794,841	16.7	%	7.0	%
Total non-interest bearing deposits		5,021,816		2,649,259		2,543,569		2,367,553	11.9	%	4.2	%

Savings accounts and time deposits		13,919,191		7,343,069		7,280,989		6,645,164	10.5	%	0.9	%
Total deposits		18,941,007		9,992,328		9,824,558		9,012,717	10.9	%	1.7	%

Other interest bearing liabilities
Banco Central de Chile borrowings
Credit lines for renegotiation of loans		8,164		4,307		4,605		5,752	(25.1	%)	(6.5	%)
Other Banco Central borrowings		193,621		102,145		237,241		166,067	(38.5	%)	(56.9	%)
Total Banco Central borrowings		201,785		106,452		241,846		171,819	(38.0	%)	(56.0	%)

Investments sold under agreements to repurchase		301,202		158,899		167,280		149,641	6.2	%	(5.0	%)

Mortgage finance bonds		918,146		484,368		509,697		592,837	(18.3	%)	(5.0	%)

Other borrowings
Bonds		1,416,165		747,098		562,285		562,778	32.8	%	32.9	%
Subordinated bonds		904,257		477,041		491,133		390,984	22.0	%	(2.9	%)
Borrowings from domestic financial institutions		0		0		0		3,590	--	%	--	%
Foreign borrowings		2,206,805		1,164,200		615,930		1,637,251	(28.9	%)	89.0	%
Other obligations		99,344		52,409		70,046		53,338	(1.7	%)	(25.2	%)
Total other borrowings		4,626,571		2,440,748		1,739,394		2,647,941	(7.8	%)	40.3	%
Total other interest bearing liabilities		6,047,704		3,190,467		2,658,217		3,562,238	(10.4	%)	20.0	%

Derivatives		692,194		365,167		375,290		289,098	26.3	%	(2.7	%)

Other liabilities
Contingent liabilities		2,117,257		1,116,959		1,012,880		1,031,766	8.3	%	10.3	%
Other		572,873		302,219		327,830		224,680	34.5	%	(7.8	%)
Minority interest		33,909		17,888		17,464		1,442	1140.5	%	2.4	%
Total other liabilities		2,724,039		1,437,066		1,358,174		1,257,888	14.2	%	5.8	%

Shareholders' equity
Capital and reserves		2,038,436		1,075,377		1,244,996		940,206	14.4	%	(13.6	%)
Income for the year		289,406		152,676		72,189		144,779	5.5	%	111.5	%
Total shareholders' equity		2,327,842		1,228,053		1,317,185		1,084,985	13.2	%	(6.8	%)
TOTAL LIABILITIES AND
SHAREHOLDER'S EQUITY		30,732,786		16,213,081		15,533,424		15,206,926	6.6	%	4.4	%


		0		0		0		0

BANCO SANTANDER CHILE

QUARTERLY INCOME STATEMENTS

Million of nominal Chilean pesos


	IIQ2007		IIQ 2007		IQ 2007		IIQ 2006		% Change		% Change
	US $thousands		Ch$ millions		Ch$ millions		Ch$ millions		IIQ 2007/2006		IIQ / IQ 2007
Interest income and expense
Interest income	720,658		380,183		288,317		341,190		11.4	%	31.9	%
Interest expense	(356,402	)	(188,020	)	(132,425	)	(167,941	)	12.0	%	42.0	%
Net interest income	364,256		192,163		155,892		173,249		10.9	%	23.3	%
Provision for loan losses	(85,706	)	(45,214	)	(36,331	)	(21,760	)	107.8	%	24.5	%
Fees and income from services
Fees and other services income	109,262		57,641		55,370		49,418		16.6	%	4.1	%
Other services expense	(19,968	)	(10,534	)	(10,261	)	(9,651	)	9.1	%	2.7	%
Total fee income	89,294		47,107		45,109		39,767		18.5	%	4.4	%
Market related income
Net gain (loss) from trading and mark-to-market	(1,190	)	(628	)	15,492		39,291		(101.6	%)	(104.1	%)
Foreign exchange transactions,net	9,794		5,167		(5,262	)	(29,750	)	(117.4	%)	(198.2	%)
Total gains (losses) on financial transactions	8,604		4,539		10,230		9,541		(52.4	%)	(55.6	%)
Other operating income, net
Other operating income, net	(21,416	)	(11,298	)	(10,537	)	(9,133	)	23.7	%	7.2	%
Operating expenses
Personnel salaries and expenses	(81,279	)	(42,879	)	(37,664	)	(39,132	)	9.6	%	13.8	%
Administrative and other expenses	(57,538	)	(30,354	)	(28,604	)	(27,607	)	10.0	%	6.1	%
Depreciation and amortization	(20,064	)	(10,585	)	(9,833	)	(9,888	)	7.1	%	7.6	%
Total operating expenses	(158,882	)	(83,818	)	(76,101	)	(76,626	)	9.4	%	10.1	%
Other income and expenses
Nonoperating income, net	10,640		5,613		1,051		(8,522	)	(165.9	%)	434.1	%
Income attributable to investments in other companies	(1,380	)	(728	)	134		409		(277.9	%)	(643.3	%)
Losses attributable to minority interest	(535	)	(282	)	(540	)	(20	)	1346.2	%	(47.8	%)
Total other income and expenses	8,725		4,603		645		(8,132	)	(156.6	%)	613.6	%
Gain (loss) from price-level restatement	(25,842	)	(13,633	)	(2,149	)	(10,247	)	--		--
Income before income taxes	179,033		94,449		86,758		96,658		(2.3	%)	8.9	%
Income taxes	(26,466	)	(13,962	)	(14,569	)	(16,314	)	(14.4	%)	(4.2	%)
Net income	152,568		80,487		72,189		80,345		0.2	%	11.5	%

BANCO SANTANDER CHILE
FIRST HALF INCOME STATEMENT
Million of nominal Chilean pesos

	IH 2007			IH 2007			IH 2006			% Change
	US$ thousands			Ch$ millions			Ch$ millions			2007/2006
Interest income and expense
Interest income		1,267,178			668,500			558,785			19.6	%
Interest expense		(607,421	)		(320,445	)		(259,647	)		23.4	%
Net interest income		659,757			348,055			299,138			16.4	%
Provision for loan losses		(154,573	)		(81,545	)		(47,231	)		72.7	%
Fees and income from services
Fees and other services income		214,219			113,011			95,958			17.8	%
Other services expense		(39,418	)		(20,795	)		(17,861	)		16.4	%
Total fee income		174,800			92,216			78,097			18.1	%
Gains on financial transactions
Net gain (loss) from trading and mark-to-market		28,176			14,864			82,599			(82.0	%)
Foreign exchange transactions,net		(180	)		(95	)		(49,747	)		(99.8	%)
Total gains on financial transactions		27,995			14,769			32,852			(55.0	%)
Other operating income, net
Other operating income, net		(41,389	)		(21,835	)		(16,903	)		29.2	%
Operating expenses
Personnel salaries and expenses		(152,674	)		(80,543	)		(73,137	)		10.1	%
Administrative and other expenses		(111,758	)		(58,958	)		(53,443	)		10.3	%
Depreciation and amortization		(38,703	)		(20,418	)		(18,964	)		7.7	%
Total operating expenses		(303,135	)		(159,919	)		(145,544	)		9.9	%
Other income and expenses
Nonoperating income, net		12,632			6,664			(19,538	)		(134.1	%)
Income attributable to investments in other companies		(1,126	)		(594	)		649			(191.5	%)
Losses attributable to minority interest		(1,558	)		(822	)		(84	)		878.6	%
Total other income and expenses		9,948			5,248			(18,973	)		(127.7	%)
Gain (loss) from price-level restatement		(29,916	)		(15,782	)		(7,466	)		111.4	%
Income before income taxes		343,488			181,207			173,970			4.2	%
Income taxes		(54,082	)		(28,531	)		(29,191	)		(2.3	%)
Net income		289,406			152,676			144,779			5.5	%

BANCO SANTANDER CHILE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS -2006-2007	2006												2007
Ch$ million nomnal pesos	1Q06			2Q06			3Q06			4Q06			1Q07			2Q07			3Q07	4Q07
	Reclassified
ASSETS

CASH AND DUE FROM BANKS
Noninterest bearing		346,360			855,315			716,085			947,741			410,617			740,303
Interbank deposit-interest bearing		969,594			731,049			307,289			144,666			605,586			291,332
Total cash and due from banks		1,315,954			1,586,364			1,023,373			1,092,407			1,016,203			1,031,635

FINANCIAL INVESTMENTS
Trading		844,288			839,973			671,975			639,461			790,234			669,060
Available for sale		561,962			543,136			602,872			345,108			360,745			673,992
Held to maturity		0			0			0			0			0			0
Investments purchased under agreements to resell		33,036			181,925			14,422			30,807			46,692			31,112
Total financial investments		1,439,286			1,565,034			1,289,269			1,015,376			1,197,671			1,374,164

LOANS,NET
Commercial loans		3,958,263			4,006,219			4,082,361			4,048,221			4,172,835			4,221,007
Consumer loans		1,480,355			1,590,374			1,692,432			1,800,507			1,869,318			1,889,268
Mortgage loans (Financed with mortgage bonds)		585,309			555,077			525,963			485,849			456,482			429,819
Foreign trade loans		589,509			671,886			656,171			741,776			869,615			663,313
Interbank loans		195,798			146,725			134,609			151,491			168,554			350,393
Leasing		694,733			720,424			754,572			764,408			787,287			810,598
Other outstanding loans		2,199,034			2,343,218			2,519,305			2,681,461			2,775,762			2,955,955
Past due loans		100,382			88,559			88,863			92,559			97,937			105,668
Contingent loans		933,590			1,030,589			963,463			1,022,687			1,010,376			1,115,134
Reserve for loan losses		(149,112	)		(147,582	)		(160,879	)		(174,064	)		(200,021	)		(211,113	)
Total loans, net		10,587,861			11,005,488			11,256,859			11,614,895			12,008,146			12,330,042

DERIVATIVES		305,712			325,163			305,641			372,688			377,628			419,417

OTHER ASSETS
Bank premises and equipment		219,510			221,255			222,441			231,360			222,228			226,927
Foreclosed assets		13,815			12,778			14,373			15,775			12,641			11,222
Investments in other companies		6,600			6,642			6,941			6,654			7,026			5,707
Assets to be leased		24,263			20,754			23,619			30,293			27,572			40,271
Other		557,395			463,448			483,377			463,991			664,310			773,696
Total other assets		821,582			724,877			750,751			748,072			933,777			1,057,823

TOTAL ASSETS		14,470,395			15,206,926			14,625,894			14,843,439			15,533,424			16,213,081

BANCO SANTANDER CHILE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS -2006-2007	2006								2007
Ch$ million nomnal pesos	1Q06		2Q06		3Q06		4Q06		1Q07		2Q07		3Q07	4Q07
	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		1,721,326
Bankers´ drafts and other deposits		736,502		794,842		787,028		819,583		867,199		927,933
		2,217,928		2,367,553		2,274,546		2,482,997		2,543,569		2,649,259

Interest bearing
Savings accounts and time deposits		6,264,072		6,645,164		6,816,812		6,909,335		7,280,989		7,343,069
Total deposits		8,482,000		9,012,717		9,091,358		9,392,332		9,824,557		9,992,328

OTHER INTEREST BEARING LIABILITIES

Chilean Central Bank borrowings
Credit lines for renegotiations of loans		6,120		5,752		5,487		5,080		4,605		4,307
Other Central Bank borrowings		124,311		166,067		184,147		134,417		237,241		102,145
Total Central Bank borrowings		130,431		171,819		189,634		139,497		241,846		106,452
Investments sold under agreements to repurchase		96,447		149,641		73,434		19,929		167,280		158,899
Mortgage finance bonds		621,469		592,837		560,334		530,206		509,697		484,368
Other borrowings
Bonds		448,214		562,778		559,165		565,653		562,285		747,098
Subordinated bonds		390,756		390,984		490,974		490,416		491,133		477,041
Borrowings from domestic financial institutions		0		3,590		3,777		0		0		0
Foreign borrowings		1,547,899		1,637,251		924,776		812,267		615,930		1,164,200
Other obligations		47,421		53,338		43,235		64,193		70,047		52,409
Total other borrowings		2,434,290		2,647,940		2,021,926		1,932,529		1,739,394		2,440,748
Total other interest bearing liabilities		3,282,637		3,562,237		2,845,328		2,622,161		2,658,217		3,190,467

DERIVATIVES		277,760		289,098		307,621		355,922		375,290		365,167

OTHER LIABILITIES
Contingent liabilities		934,634		1,031,766		964,924		1,024,048		1,012,880		1,116,959
Other		340,261		224,683		228,038		202,115		327,831		302,219
Minority interest		1,518		1,442		1,489		1,522		17,464		17,888
Total other liabilities		1,276,413		1,257,890		1,194,451		1,227,685		1,358,175		1,437,066

SHAREHOLDERS' EQUITY
Capital and reserves		1,087,152		940,206		962,424		959,757		1,244,996		1,075,377
Income for the period		64,434		144,779		224,713		285,582		72,189		152,676
Total shareholders' equity		1,151,586		1,084,985		1,187,137		1,245,339		1,317,185		1,228,053

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		14,470,395		15,206,926		14,625,894		14,843,439		15,533,424		16,213,081

BANCO SANTANDER CHILE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS -2006-2007	2006												2007
Ch$ million nomnal pesos	1Q06			2Q06			3Q06			4Q06			1Q07			2Q07			3Q07	4Q07
	Reclassified



CONSOLIDADTE INCOME STATEMENT

INTEREST REVENUE AND EXPENSE
Interest revenue		217,595			341,190			356,538			253,529			288,317			380,183
Interest expense		(91,706	)		(167,941	)		(180,320	)		(116,630	)		(132,425	)		(188,020	)
Net interest revenue		125,889			173,249			176,217			136,899			155,892			192,163
PROVISIONS FOR LOAN LOSSES		(25,471	)		(21,760	)		(36,277	)		(39,514	)		(36,331	)		(45,214	)

FEES AND INCOME FROM SERVICES

Fees and other services income		46,540			49,418			50,458			51,910			55,370			57,641
Other services expenses		(8,210	)		(9,651	)		(8,211	)		(9,705	)		(10,261	)		(10,534	)
Total fees and income from services, net.		38,330			39,767			42,247			42,205			45,109			47,107

OTHER OPERATING INCOME
Net gains from trading and brokerage activities		43,308			39,291			(5,056	)		22,772			15,492			(628	)
Foreign exchange transactions, net		(19,997	)		(29,750	)		5,499			(4,460	)		(5,262	)		5,167
Total Market related income		23,311			9,541			443			18,312			10,230			4,539
Other operating income (loss), net		(7,770	)		(9,133	)		(8,188	)		(7,869	)		(10,537	)		(11,298	)
Total other operating income		15,541			408			(7,745	)		10,443			(307	)		(6,759	)

OPERATING EXPENSES
Personnel salaries and expenses		(34,005	)		(39,132	)		(38,468	)		(48,118	)		(37,664	)		(42,879	)
Administrative and other expenses		(25,836	)		(27,607	)		(27,563	)		(29,943	)		(28,604	)		(30,354	)
Depreciation and amortization		(9,076	)		(9,888	)		(9,650	)		(10,000	)		(9,833	)		(10,585	)
Total operating expenses		(68,917	)		(76,626	)		(75,680	)		(88,061	)		(76,101	)		(83,818	)

OTHER INCOME AND EXPENSES
Non-operating income (loss), net		(11,017	)		(8,522	)		6,269			9,055			1,051			5,613
Income attributable to investments in other companies		240			409			219			(82	)		134			(728	)
Losse s atributable to Minority interest		(65	)		(20	)		(28	)		(41	)		(540	)		(282	)
Total other income and expenses		(10,842	)		(8,132	)		6,460			8,932			645			4,603

LOSS FROM PRICE-LEVEL RESTATEMENT		2,781			(10,247	)		(8,796	)		2,480			(2,149	)		(13,633	)

INCOME BEFORE INCOME TAXES		77,311			96,658			96,427			73,384			86,758			94,449

Income taxes		(12,877	)		(16,314	)		(16,493	)		(12,516	)		(14,569	)		(13,962	)

NET INCOME		64,434			80,345			79,934			60,868			72,189			80,487

Appendix
Client net interest income		124,580			137,291			137,636			141,799			150,071			156,852
Non-client net interest income		1,309			35,958			38,582			(4,900	)		5,821			35,311
Total net interest income		125,889			173,249			176,217			136,899			155,892			192,163

Client net interest income		124,580			137,291			137,636			141,799			150,071			156,852
Fee income		38,330			39,767			42,247			42,205			45,109			47,107
Total Client income		162,910			177,058			179,882			184,004			195,180			203,959

Net interest income		125,889			173,249			176,217			136,899			155,892			192,163
Fee income		38,330			39,767			42,247			42,205			45,109			47,107
Core revenues		164,219			213,016			218,464			179,104			201,001			239,270

Net interest margin		3.9	%		5.0	%		5.0	%		4.0	%		4.4	%		5.5	%
Client margin		4.9	%		5.1	%		5.0	%		5.0	%		5.1	%		5.2	%

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

Profitability
Return on average equity		20.5	%		25.7	%		26.8	%		21.7	%		22.8	%		28.7	%		27.5	%		18.3	%		22.4	%		25.8	%

Capital ratio
BIS		16.2	%		13.4	%		13.2	%		12.9	%		14.3	%		12.2	%		12.8	%		12.6	%		14.6	%		13.0	%

Earnings per Share
Net income (nominal Ch$mn)		53,960			62,101			66,433			57,216			64,434			80,345			79,934			60,868			72,189			80,487
Net income per share (Nominal Ch$)		0.29			0.33			0.35			0.30			0.34			0.43			0.42			0.32			0.38			0.43
Net income per ADS (US$)		0.51			0.59			0.69			0.61			0.67			0.81			1.81			0.63			0.74			0.84
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			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	%		0.84	%
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	%		199.8	%

Efficiency
Operating expenses/operating income		41.8	%		39.1	%		39.9	%		45.6	%		38.3	%		35.9	%		35.9	%		46.5	%		37.9	%		36.0	%

Market information (period-end)
Stock price		18.6			17.9			22.3			21.6			22.05			20.84			23.5			24.8			25.9			25.2
ADR price		33.13			32.3			43.87			44.6			43.6			40.34			45.25			48.16			49.87			49.54
Market capitalization (US$mn)		6,009			5,858			7,957			8,089			7,908			7,317			8,207			8,735			9,045			8,985

Network
ATMs		1,187			1,225			1,322			1,422			1,395			1,443			1,479			1,588			1,635			1,744
Branches		316			327			335			352			361			367			368			397			410			417

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			527.55

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: August 29, 2007	By:	/s/ Gonzalo Romero
		Name: Gonzalo Romero
		Title: General Counsel