Banco Santander Chile Announces First Quarter 2011 Earnings

SANTIAGO, Chile, April 29, 2011 - Banco Santander Chile (NYSE: SAN; SSE: Bsantander) announced today its
unaudited results for the first quarter of 2011. These results are reported
on a consolidated basis in accordance with Chilean Bank GAAP in nominal
Chilean pesos.

Pre-tax net income increases 2.6% YoY in 1Q11

In 1Q11, net income attributable to shareholders(1) totaled Ch$116,298
million (Ch$0.62 per share and US$1.33/ADR(2)). On a pre-tax basis, net
income increased 2.6% compared to 1Q10 (from now on YoY). Compared to 4Q10
(from now on QoQ), pre-tax net income increased 25.6% mainly as a result of a
one-time charge of Ch$39,800 million recognized in 4Q10. After tax net income
fell 2.4% YoY mainly as a result of the higher statutory corporate tax rate
that increased to 20% in 2011.

Strong loan growth in the quarter.

In 1Q11, total loans increased 7.1% QoQ and 19.4% YoY. Higher yielding
retail loans, which include loans to individuals and small and middle-sized
companies - increased 3.1% QoQ and 16.4% YoY in 1Q11. In the middle market,
loans increased 8.3% QoQ and 22.5% YoY. This segment was positively affected
by economic growth, especially the rise in investment levels. Corporate
lending increased 35.9% QoQ and 37.3% YoY. This rise was due, in part, to the
increase in loans to Chilean blue chip corporations. Loan market share in
March 2011, the latest figure available, reached 21.6% and has increased 130
bp in the last twelve months. Notable has been the increase of our consumer
loan market share that increased 140 basis points to 27.7% YoY.

Record growth of core deposits

Customer deposits increased 10.7% in the quarter, led by a record 12.1%
QoQ and 40.7% rise in core deposits (non-institutional deposits). In the
quarter, the Bank focused on increasing its core deposit base in line with
growth of the loan book. The Bank's loan to deposit ratio (measured as loans
minus marketable securities that fund mortgage portfolio over total deposits)
improved to 96.9% as of March 2011 from 99.8% as of December 2010 and 104.3%
as of March 2010. As of March 2011, 74% of the Bank's deposits were core.

Operating income net of provisions and costs* increases 14.1% QoQ and
11.0% YoY in 1Q11

Operating income, net of provisions and costs, an indicator or recurring
revenue generation increased a solid 14.1% QoQ and 11.0% YoY in 1Q11. This
was led by a 6.5% QoQ and 14.0% YoY increase in net interest income, net of
provisions. The Central Bank continued to tighten monetary policy in the
quarter and boosted short-term interest rates 75 basis points to 4.00%. As
the Bank's liabilities have a shorter duration than assets, they re-price
more quickly than assets in a rising interest rate environment. This
explains, in part, the 1.4% QoQ and 0.3% YoY decrease in net interest income
in 1Q11.

The decline in net interest income was also due to the normalization of
credit margins to pre-crisis levels as asset quality has improved across the
board in the Chilean economy. This has also had a positive effect on
provision expense. Provision expense in the quarter decreased 22.5% QoQ and
31.9% YoY, offsetting the negative effect on margins of higher funding costs.
The net interest margin net of provisions reached 4.0% in 1Q11 compared to
3.9% in 4Q10 and 4.0% in 1Q10. The NPL ratio improved to 2.47% of total loans
from 2.66% in 4Q10 and 2.74% in 1Q10. The coverage ratio of total NPLs (loan
loss reserves over non-performing loans) reached 118.2% as of March 31, 2011
compared to 115.6% as of December 31, 2010 and 97.4% as of March 31, 2010.
The Banks on-going efforts in 2009 and 2010 of improving credit scoring
models, boosting coverage and improving collection efforts of early
non-performance at the branch level has also been a driver of the lower
provision expense and higher coverage ratios.

Fee income was up 2.5% QoQ and 14.5% YoY as product usage and
cross-selling indicators continued to improve in the quarter. The number of
checking accounts increased 13.9% YoY, credit cards +18.1% YoY and Debit
cards grew 9.8% YoY. Purchases with Santander Chile's credit cards increased
31.6% YoY in monetary terms. Greater commercial activity in retail banking
also boosted fees, especially in insurance brokerage, stock brokerage, asset
management and fees from credit and debit cards.

Operating expenses in 1Q11 decreased 0.6% QoQ and increased 11.2% YoY.
The efficiency ratio reached 37.5% in 1Q11. The QoQ decrease in personnel
expenses was mainly due to seasonal factors and no significant variation in
headcount. The 13.0% YoY increase in personnel expenses was mainly due
greater commercial activity in various business segments, especially retail
banking. Administrative expenses were up 5.1% QoQ and 9.6% YoY. This rise was
in line with the significant expansion of business activity in the quarter.
At the same time, the Bank, in anticipation of a more positive economic
environment forecast for the coming years, has been investing in technology
and alternative distribution channels. In 2011, the Bank expects to open
approximately 25 branches and has already begun an important investment
program in CRM technology, client service and new credit scoring models for
SMEs. These projects should drive stronger revenue growth while increasing
productivity.

ROE reaches 25.0% in 1Q11. Core capital at 10.2%.

With these results, the Bank's ROAE, reached 25% (25.5% post-dividend).
The Bank currently has one of the highest ROEs and capitalization levels in
the Chilean financial system. Voting common shareholders' equity is the sole
component of our Tier I capital and represented 10.2% of risk-weighted
assets. The BIS ratio reached 13.9% as of March 31, 2011. On April 27, 2011,
the Bank paid its annual dividend of Ch$1.52/share, 10.6% more than in 2010
and equivalent to 60% of 2010 earnings attributable to shareholders. At the
record date in Chile, the dividend yield was 3.7%. The Bank has not issued
shares since 2002 and dividends per share have increased for the last five
years in a row.

INSTITUTIONAL BACKGOUND

As per the latest public records published by the Superintendency of
Banks of Chile for March 2011, Banco Santander Chile was the largest bank in
terms of loans and equity. The Bank has the highest credit ratings among all
Latin American companies, with an A+ rating from Standard and Poor's and Aa3
by Moody's, which are the same ratings assigned to the Republic of Chile, and
AA- by Fitch, which pierces the sovereign ceiling. 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 75.0%
of Banco Santander Chile.

For more information see www.santander.cl

Banco Santander (SAN.MC, STD.N) is a retail and commercial bank, based in
Spain. Santander has more than 90 million customers, 13,660 branches - more
than any other international bank - and 169,460 employees around the world.
It is the largest financial group in Spain and Latin America, with leading
positions in the United Kingdom and Portugal and a broad presence in Europe
through its Santander Consumer Finance arm. In 2010, Santander registered EUR
8,181 million in net attributable profit.

Banco Santander ended 2010 with eligible capital of EUR 79,276 million,
with a surplus of EUR 30,885 million above the required regulatory minimum.
With this capital base, the BIS ratio, using Basel II criteria, comes to
13.1%, Tier I to 10.0% and core capital to 8.8%. The Bank has announced that
it expects to end this year with its core capital above 9%.

These ratios make Banco Santander one of the most solvent financial
institutions in the world, without having received state aid in any of the
markets in which it operates. Moreover, ratings agencies Standard & Poor's
and Fitch have reviewed and confirmed their ratings of Banco Santander
long-term debt at AA, making the bank one of few international banks with
ratings of AA or above from the three main ratings agencies.

For more information see www.santander.com

(1) The results in this report are unaudited.

(2) Earnings per ADR was calculated using the observed exchange rate of
Ch$482.08 per US$. As of March 31, 2010.

    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
    Email: rmorenoh@santander.cl
    Website: www.santander.cl

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