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

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

Form 40-F

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

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

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

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Table of Contents

Item

1.		First Half 2009 Financial Statements (English, Free translation)

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

	By:	/s/ Juan Pedro Santa María
		Name: Juan Pedro Santa María
		Title: General Counsel

Date: August 19, 2009

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Refers to

	June 30			June 30			December 31			January 1
	2009 (in millions) CLP			2008 (in millions) CLP			2008 (in millions) CLP			2008 (in millions) CLP
ASSETS

Cash and bank deposits		942,065			1,280,559			855,411			1,108,637
Operations pending settlement		426,647			487,591			335,405			316,240
Instruments for trading		1,003,448			893,938			1,166,426			1,093,445
Repurchase contracts and securities loans		13,212			11,697			-			33,999
Financial derivative contracts		1,502,295			1,233,562			1,846,509			780,775
Owed by banks		57,800			150,406			95,499			45,961
Credits and accounts receivable from customers		13,087,295			12,954,140			14,311,349			12,022,275
Investment instruments available for sale		1,444,802			1,080,216			1,580,240			779,635
Investment instruments held to maturity		-			-			-			-
Equity in companies		7,145			7,786			7,277			7,301
Intangibles		69,356			58,526			68,232			56,224
Fixed assets		190,997			201,234			200,389			202,489
Current taxes		4,826			18,235			18,715			2,499
Deferred taxes		94,369			83,280			88,825			80,989
Other assets		561,407			586,288			508,655			460,282

TOTAL ASSETS		19,405,664			19,047,458			21,082,932			16,990,751
LIABILITIES

Demand deposits and other demand obligations		3,083,814			3,194,423			2,948,162			2,867,934
Operations pending settlement		195,249			297,611			142,552			135,219
Repurchase contracts and securities loans		512,279			294,438			562,223			307,630
Time deposits and other funds obtained		8,342,396			8,390,418			9,756,266			7,887,897
Financial derivative contracts		1,462,558			1,081,784			1,469,724			778,217
Obligations toward banks		1,140,901			1,505,196			1,425,067			1,099,457
Debt instruments issued		2,622,275			2,405,006			2,651,372			2,154,996
Other financial obligations		149,046			165,833			131,318			175,667
Current taxes		34,786			1,017			791			16,067
Deferred taxes		9,567			23,949			19,437			11,084
Provisions		122,990			92,938			166,719			50,102
Other liabilities		201,864			295,128			293,733			118,550

TOTAL LIABILITIES		17,877,725			17,747,741			19,567,364			15,602,820
SHAREHOLDERS’ EQUITY

Attributable to Bank shareholders:		1,497,019			1,276,028			1,489,689			1,369,797
Capital		891,303			818,535			891,303			818,535
Reserves		(16,960	)		(20,571	)		(123,726	)		(20,914	)
Valuation accounts		(14,199	)		(45,900	)		(7,552	)		(9,475	)
Retained profits:		636,875			523,964			729,664			581,651
Retained earnings from prior fiscal years		508,045			381,030			413,053			581,651
Profit (loss) for fiscal year		184,043			189,159			415,055			-
Minus: Provision for minimum dividends		(55,213	)		(46,225	)		(98,444	)		-

Minority Interest		30,920			23,689			25,879			18,134

TOTAL SHAREHOLDERS’ EQUITY		1,527,939			1,299,717			1,515,568			1,387,931

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		19,405,664			19,047,458			21,082,932			16,990,751

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the periods ended

	June 30			June 30
	2009 (in millions) CLP			2008 (in millions) CLP

OPERATING INCOME
Revenue from interest and adjustments		585,535			896,399
Expenses for interest and adjustments		(171,651	)		(488,143	)

Net revenue from interest and adjustments		413,884			408,256

Fee revenue		155,840			144,773
Fee expenses		(31,064	)		(24,854	)

Revenue net of fees		124,776			119,919

Net profit from financial operations		566			74,656
Currency exchange profit (loss), net		97,905			(39,191	)
Other operating revenue		5,426			15,711

Total operating revenue		642,557			579,351

Credit risk provisions		(186,971	)		(131,913	)

NET OPERATING REVENUE		455,586			447,438

Personnel compensation and expenses		(112,095	)		(115,745	)
Administrative expenses		(67,706	)		(65,567	)
Depreciation and amortization		(22,586	)		(24,726	)
Deterioration		-			-
Other operating expenses		(27,710	)		(19,772	)

TOTAL OPERATING EXPENSES		(230,097	)		(225,810	)

OPERATING INCOME		225,489			221,628

Income from equity in companies		766			1,333

Income before income tax		226,255			222,961

Income tax		(38,075	)		(29,035	)

CONSOLIDATED PROFIT (LOSS) FOR FISCAL YEAR		188,180			193,926

Attributable to:
Bank shareholders		184,043			189,159
Minority Interest		4,137			4,767

Profit per share attributable to Bank shareholders:
(expressed in pesos)
Basic profit		0.9766			1.0038
Diluted profit		0.9766			1.0038

BANCO SANTANDER CHILE AND SUBSIDIARIES

CONSOLIDATED INTEGRAL STATEMENTS OF INCOME

For the periods ended

	June 30			June 30
	2009 (in millions) CLP			2008 (in millions) CLP
CONSOLIDATED PROFIT (LOSS) FOR FISCAL YEAR		188,180			193,926

OTHER INTEGRAL INCOME

Investment instruments available for sale		10,238			(27,999	)
Cash flow coverage		(17,417	)		(15,887	)
		-			-
Other integral income before income tax		(7,179	)		(43,886	)

Income tax related to other integral income		1,220			7,461

Total other integral income		(5,959	)		(36,425	)

CONSOLIDATED INTEGRAL RESULTS IN CURRENT FISCAL YEAR		182,221			157,501

Attributable to :
Bank shareholders		177,396			152,734
Minority Interest		4,825			4,767

	BANCO SANTANDER CHILE
	STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
	For the periods ended
	Figures in millions of pesos

			Reserves						Valuation Accounts									Retained Earnings
	Capital		Reserves and other retained profits			Merger of companies under common control			Investment instruments available for sale			Cash flow hedge			Other items	Income tax		Retained earnings from prior fiscal years			Profit in current fiscal year			Provision for minimum dividends			Total attributable to shareholders			Minority Interest			TOTAL SHAREHOLDERS’ EQUITY

Shareholders’ equity as of December 31, 2007		818,535		49,372			(2,042	)		(5,548	)		(5,867	)			1,940		273,004			308,647			-			1,438,041			20,047			1,458,088
Distribution of previous fiscal year’s income		-		-			-			-			-				-		308,647			(308,647	)		-			-			-			-
Subtotal		818,535		49,372			(2,042	)		(5,548	)		(5,867	)			1,940		581,651			-			-			1,438,041			20,047			1,458,088
Effect of first Application of IFRS		-		(68,244	)		-			-			-				-		-			-			-			(68,244	)		(1,913	)		(70,157	)
Shareholders’ equity as of January 1, 2008		818,535		(18,872	)		(2,042	)		(5,548	)		(5,867	)			1,940		581,651			-			-			1,369,797			18,134			1,387,931
Adjustments for Circular No. 3443 minimum dividends 2008		-		-			-			-			-				-		-			-			(92,594	)		(92,594	)		-			(92,594	)
Dividends/withdrawals made		-		-			-			-			-				-		-			-			-			-			-			-
Other changes of shareholders’ equity		-		343			-			-			-				-		-			-			-			296			(44	)		252
Provision for minimum dividends		-		-			-			-			-				-		-			-			(22,694	)		(22,694	)		-			(22,694	)
Subtotal		-		343			-			-			-				-		-			-			(115,288	)		(114,992	)		(44	)		(115,036	)
Other integral income		-		-			-			(27,999	)		(15,887	)			7,461		-			-						(11,680	)		-			(11,680	)
Income in fiscal year		-		-			-			-			-				-		-			85,997						85,997			2,589			88,586
Subtotal		-		-			-			(27,999	)		(15,887	)			7,461		-			85,997			-			74,317			2,589			76,906
Shareholders’ equity as of June 30, 2008		818,535		(18,529	)		(2,042	)		(33,547	)		(21,754	)			9,401		581,651			85,997			(115,288	)		1,329,122			20,679			1,349,801

Shareholders’ equity as of December 31, 2008		891,303		(121,684	)		(2,042	)		(19,972	)		10,873				1,547		413,053			415,055			(98,444	)		1,489,689			25,879			1,515,568
Distribution of income from previous fiscal year		-		-			-			-			-				-		415,055			(415,055	)		-			-			-			-
Subtotal		891,303		(121,684	)		(2,042	)		(19,972	)		10,873				1,547		828,108			-			(98,444	)		1,489,689			25,879			1,515,568
Replacement of monetary correction 2008		-		106,766			-			-			-				-		(106,766	)		-			-			-			-			-
Shareholders’ equity as of January 1, 2009		891,303		(14,918	)		(2,042	)		(19,972	)		10,873				1,547		721,342			-			(98,444	)		1,489,689			25,879			1,515,568
Increase or decrease of capital and reserves		-		-			-			-			-				-		-			-			-			-			-			-
Dividends/withdrawals made
Other changes of shareholders’ equity		-		-			-			-			-				-		(2	)		-			-			(2	)		(882	)		(884	)
Provision for minimum dividends		-		-			-			-			-				-		-			-			(22,995	)		(22,995	)		-			(22,995	)
Subtotal		-		-			-			-			-				-		(2	)		-			(22,995	)		(22,997	)		(882	)		(23,879	)
Other integral income		-		-			-			9,409			(17,417	)			1,361		-			-						(304	)		527			223
Income in fiscal year		-		-			-			-			-				-		-			76,652						76,652			2,879			79,531
Subtotal		-		-			-			9,409			(17,417	)			1,361		-			76,652			-			76,348			3,406			79,754
Shareholders’ equity as of June 30, 2009		891,303		(14,918	)		(2,042	)		(10,563	)		(6,544	)			2,908		721,340			76,652			(121,439	)		1,543,040			28,403			1,571,443

Dividends distributed:
Period	Total attributable to shareholders		Allocated to reserves or retained earnings		Allocated to Dividends		Percentage Distributed			Dividend per share (in pesos)
- Year 2007 (Shareholders Meeting April 2008)		308,647		108,028		200,619		65	%		1,065

- Year 2008 (Shareholders Meeting April 2009)		328,146		118,851		213,295		65	%		1,132

	BANCO SANTANDER CHILE AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the periods ended

	June 30			June 30
	2009 (in millions) CLP			2008 (in millions) CLP
FLOWS ARISING FROM OPERATING ACTIVITIES:

CONSOLIDATED PROFIT (LOSS) FOR FISCAL YEAR		188,180			193,926
Debits (credits) to income not implying changes of cash:
Depreciation and amortization		22,586			24,726
Provisions for credits, customer accounts receivable, and write-offs		206,625			131,913
Adjustment of financial instruments to market value		(41,227	)		(1,432	)
(Profit) Loss on equity in companies		(766	)		(918	)
(Profit) Loss on sale of assets received in payment		(2,239	)		(4,879	)
(Profit) Loss on sale of fixed assets		(207	)		677
Write-off of assets received in payment		2,869			2,151
Other debits (credits) not implying changes of cash		47,077			26,571
Net variation of interest, adjustments, and fees earned on assets and liabilities		(50,413	)		(20,630	)
Total Operating Flows		372,485			352,105
FLOW ARISING FROM INVESTMENT ACTIVITIES:
Net (increase) decrease of credits and accounts receivable		922,642			(1,098,922	)
Net (increase) decrease of investments		754,758			(277,762	)
Purchases of fixed assets		(9,998	)		(6,760	)
Sales of fixed asset		11,312			2,103
(Increase) decrease of equity in companies		(79	)		-
Dividends received from equity in companies		790			606
Revenue from goods received in payment		15,246			12,187
Net increase (decrease) of other assets and liabilities		(70,529	)		(74,334	)
Total Investment Flows		1,624,142			(1,442,882	)
FLOW ARISING FROM FINANCING ACTIVITIES:
Increase (decrease) of receivables in current account		110,522			291,002
Increase (decrease) of deposits and receipts of funds		(1,384,048	)		502,522
Increase (decrease) of other demand or time obligations		42,505			25,447
Increase (decrease) of obligations for intermediation of documents		(259,267	)		120,568
Increase (decrease) of external loans, short and long-term		(283,240	)		297,160
Issuance of letters of credit		4,506			-
Redemption of letters of credit		(69,073	)		(66,802	)
Increase (decrease) of other short-term liabilities		13,608			2,399
Loans obtained from Central Bank of Chile (short term)		324,682			72,850
Payment of loans from Central Bank of Chile (short and long term)		(325,609	)		(74,366	)
Bond issues		201,346			202,929
Bond redemptions		(36,259	)		(9,248	)
Other Loans obtained, short and long term		3,307			107,767
Payment of other long-term loans		(1,006	)		-
Capital increase (decrease)		5,600			-
Dividends paid		(219,002	)		(200,570	)
Total Financing Flows		(1,871,428	)		1,271,658

SUB TOTAL		125,199			180,881
VARIATION OF CASH AND CASH EQUIVALENTS DURING THE PERIOD		125,199			180,881
INITIAL BALANCE OF CASH AND CASH EQUIVALENTS		1,048,264			1,289,658
FINAL BALANCE OF CASH AND CASH EQUIVALENTS		1,173,463			1,470,539

NOTE No. 1 ADOPTION OF THE COMPENDIUM OF ACCOUNTING STANDARDS FOR THE FIRST TIME:

The Superintendency of Banks and Financial Institutions (“SBIF”), jointly with other superintendencies and other regulatory agencies in Chile, adopted a plan for convergence with the International Financial Information Standards (“IFIS”), to internationalize the financial reporting models for publicly owned companies in Chile. In the framework of the strategic plan, the SBIF, through its Circular No. 3,410 of November 9, 2007, subsequently complemented by Circular No. 3,443 of August 21, 2008, announced the new “Compendium of Accounting Standards,” containing the new accounting and reporting standards for the financial industry that will become applicable as of January 1, 2009, based on the transitory standards established in Chapter E of that compendium.

By legal mandate, the banks must use the accounting criteria adopted by the SBIF, and in all matters not provided for therein nor contrary to their instructions, they must abide by the generally accepted accounting criteria which reflect the technical standards issued by the Colegio de Contadores de Chile A.G. (Chilean Accounting Association), coinciding with the international financial accounting and reporting standards adopted by the International Accounting Standards Board (“IASB”). In the event of discrepancies between the accounting principles and the accounting criteria issued by the SBIF (Compendium of Accounting Standards), the latter will prevail.

As a result of the aforementioned, the Bank adopted a plan for the transition to the new accounting standards that includes, among other things, an analysis of the differences of accounting criteria, the selection of the accounting criteria to be applied in the cases in which alternative treatments are permitted, and evaluation of the changes of procedure and information systems.

According to this transition plan, the standards of the new Compendium of Accounting Standards have been applied retroactively to January 1, 2008, and an opening balance sheet as of that date has been drawn up. Furthermore, with the aim of presenting comparative financial standards in 2009, the Bank drew up a set of pro forma financial statements for the year 2008.

Below is a breakdown and explanation of the principal impacts of the migration to these new accounting standards, in relation to the balance sheet and income statements.

a) Reconciliation of Shareholders’ Equity according to the new Compendium of Accounting Standards:

The principal adjustments in Shareholders’ Equity arising from the migration to the new Compendium of Accounting Standards are:

		Total Shareholders’ Equity
		As of January 1, 2008			As of June 30, 2008			As of December 31, 2008
	Explanation	CLP (in millions)			CLP (in millions)			CLP (in millions)

Shareholders’ equity before changes in standards			1,458,089			1,373,196			1,602,610

Adjustments:
Perimeter of consolidation	i		(14,453	)		(10,469	)		(9,712	)
Supporting companies	ii		506			762			719
Monetary correction	iii		-			(9,734	)		(30,493	)
Fixed and intangible assets	iv		(64,494	)		(62,896	)		(58,613	)
Goods received or given in payment:	v		(929	)		(586	)		(408	)
Write-offs of placements	vi		(2,205	)		(2,815	)		(4,235	)
Deferred taxes	vii		11,419			12,259			15,700
Subtotal			(70,156	)		(73,479	)		(87,042	)

Shareholders’ equity according to the new Compendium of Accounting Standards			1.387.931			1,299,717			1,515,568

(*) A detailed explanation of the nature of the principal adjustments is given in letter g).

As discussed above, these adjustments are generated by the adoption of the new SBIF Compendium of Accounting Standards; accordingly, they do not reflect a recognition of errors in prior fiscal years pursuant to NIC 8.

NOTE No. 1 ADOPTION OF THE COMPENDIUM OF ACCOUNTING STANDARDS FOR THE FIRST TIME, continuation:

b) Reconciliation of Income according to the new Compendium of Accounting Standards:

The principal adjustments in Income arising from the migration to the new Compendium of Accounting Standards are:

		Consolidated Income
		As of June 30, 2008			As of December 31, 2008
	Explanation	CLP (in millions)			CLP (in millions)

Income before changes in standards			156,095			331.017

Adjustments:
Perimeter of consolidation	i		3,985			4,742
Supporting companies	ii		256			213
Monetary correction	iii		31,419			78,027
Fixed and intangible assets	iv		1,598			5,881
Goods received or given in payment	v		343			521
Write-offs of placements	vi		(610	)		(2,030	)
Deferred taxes	vii		840			4,281
Subtotal			37,831			91,635

Income according to the new Compendium of Accounting Standards			193,926			422,652

(*) A detailed explanation of the nature of the principal adjustments is given in letter g).

c) Opening Balance Sheet according to the new Compendium of Accounting Standards:

As discussed above, the rules of the new Compendium of Accounting Standards were applied retroactively to January 1, 2008, to draw up the respective opening balance sheet under these new accounting standards.

Below is a presentation of the reconciliation of balances for the Balance Sheet, for which the following definitions apply:

Closing balances:

These are the balances shown in the consolidated financial statements of the Bank and its subsidiaries as of January 1, 2008, which were prepared in accordance with the previously applicable accounting criteria and principles.

Adjustments:

Changes arising chiefly in the valuation criteria and accounting policies modified by the new set of standards. Changes in the perimeter of consolidation prescribed by the new Compendium of Accounting Standards are included in this concept.

Opening Balances:

These are the balances reflecting the adjustments’ effect on the closing balance sheet.

NOTE No. 1 ADOPTION OF THE COMPENDIUM OF ACCOUNTING STANDARDS FOR THE FIRST TIME, continuation:

c) Opening Balance Sheet according to the new Compendium of Accounting Standards, continuation:

	As of January 1, 2008
	Closing Balances		Adjustments (*)			Opening Balances:
	(in millions) CLP		(in millions) CLP			(in millions) CLP
ASSETS

Cash and bank deposits		1,108,444		193			1,108,637
Operations pending settlement		316,240		-			316,240
Instruments for trading		1,090,004		3,441			1,093,445
Repurchase contracts and securities loans		33,999		-			33,999
Financial derivative contracts		780,775		-			780,775
Owed by banks		45,961		-			45,961
Credits and accounts receivable from customers		12,028,053		(5,778	)		12,022,275
Investment instruments available for sale		779,635		-			779,635
Equity in companies		6,795		506			7,301
Intangibles		56,187		37			56,224
Fixed assets		245,619		(43,130	)		202,489
Current taxes		1,933		566			2,499
Deferred taxes		61,260		19,729			80,989
Other assets		474,091		(13,809	)		460,282

TOTAL ASSETS		17,028,996		(38,245	)		16,990,751

LIABILITIES

Demand deposits and other demand obligations		2,868,769		(835	)		2,867,934
Operations pending settlement		135,219		-			135,219
Repurchase contracts and securities loans		308,651		(1,021	)		307,630
Time deposits and other funds obtained		7,887,897		-			7,887,897
Financial derivative contracts		778,217		-			778,217
Obligations toward banks		1,099,443		14			1,099,457
Debt instruments issued		2,154,996		-			2,154,996
Other financial obligations		147,868		27,799			175,667
Current taxes		15,897		170			16,067
Deferred taxes		10,877		207			11,084
Provisions		46,376		3,726			50,102
Other liabilities		116,698		1,852			118,550

TOTAL LIABILITIES