Banco Santander Chile Announces Fourth Quarter 2010 Earnings

SANTIAGO, Chile, February 3, 2011 - Banco Santander Chile (NYSE: SAN; SSE: Bsantander) announced today its
unaudited results for the fourth quarter and full year 2010. These results
are reported on a consolidated basis in accordance with Chilean GAAP in
nominal Chilean pesos.

In 4Q10, net income attributable to shareholders(1) totaled Ch$93,872
million (Ch$0.50 per share and US$1.11/ADR(2)). Excluding a one-time charge
of Ch$39,800 million recognized in the quarter as a result of new regulatory
provisioning standards for commercial loans, adjusted net income totaled
Ch$133,672 million (Ch$0.71 per share and US$1.57 per ADR) and increased 6.6%
compared to third quarter 2010 (QoQ) and -2.6% compared to 4Q09 (YoY).

Adjusted ROAE reaches 29.7% in 4Q10. Core capital at 10.6%.

With these results, the Bank's ROAE, excluding the one-time charge,
reached 29.7% in 4Q10. The Bank currently has one of the highest ROEs and
capitalization levels in the Chilean financial system. As of December 31,
2010, the Bank's BIS ratio reached 14.5% and its Core Capital ratio stood at
10.6%. The Bank has consistently produced high ROEs and one of the largest
gaps between ROE and cost of capital among banks in Emerging Markets.

Strong loan growth in the quarter. Retail loans up 4.3% QoQ and 14,9% YoY
in 4Q10

In 4Q10, total loans increased 2.8% QoQ (14.1% YoY). Higher yielding
retail loans - which include loans to individuals and small and middle-sized
companies, SMEs - increased 4.3% QoQ (14.9% YoY).

Loans to individuals increased 4.6% QoQ (15.4% YoY), led by a 5.7% QoQ
increase (20.4% YoY) in consumer loans, especially credit cards loans that
expanded 12.3% QoQ (35.3% YoY). This positive evolution was driven by a
strong Christmas shopping season and a greater client preference of
purchasing goods with the Bank's cards instead of other means of payments.

Residential mortgage loans increased 3.4% QoQ (11.8% YoY), as long-term
rates remained attractive and demand for purchasing housing continues to
rise.

Lending to SMEs increased 3.2% QoQ (13.2% YoY) reflecting the strength of
economic growth and the Bank's focus on this high yielding segment.

Core Revenues: positive commercial trends partially offset by negative
impact of rising rates

Core revenues, which includes Net interest income and fee income, were
flat QoQ and up 4.0% YoY in 4Q10. During the quarter, commercial activity was
strong and the Bank's loan market share continued to increase. The most
important rise in market share has been in consumer and credit card loans,
which increased 190 basis points, since the beginning of the year to 27.7% as
of December 2010.

On the other hand, inflation trends in 4Q10 were below expectations (the
quarterly inflation rate was down 11 basis points compared to 3Q10), while
the Central Bank increased short-term interest rates 75 basis points to 3.25%
in the quarter. As a result, net interest income decreased 1.6% QoQ as the
Bank's margins have a positive sensitivity to inflation and a negative
sensitivity to a rise in short-term rates. Net interest income was up 2.9%
YoY in 4Q10. Going forward, we forecast inflation to be higher in 2011 and
asset yields should gradually incorporate the rising interest rate
environment.

Fee income was up 4.8% QoQ (7.8% YoY) as product usage and cross-selling
indicators continued to improve in the quarter. Fees from credit, debit and
ATM cards increased 8.6% QoQ. YoY purchases with Santander cards as of
November 2010 were up 28.7% in real terms. Greater commercial activity in
retail banking also boosted fees from our insurance brokerage subsidiary that
increased 15.5% QoQ. Asset management fees grew 7.7% in the same period.

The rise in interest rates also had a negative impact on the Bank's fixed
income portfolio. The net results from financial transactions were down 9.5%
QoQ. This was partially offset by a 9.1% QoQ increase in income derived from
client driven treasury services.

Asset quality improved in the quarter. The NPL ratio reached 2.66% as of
December 31, 2010 compared to 2.68% as of September 30, 2010 and 2.98% at
year-end 2009. The coverage ratio of total NPLs reached 106.1% as of December
31, 2010 compared to 105.1% as of September 30, 2010 and 85.4% at year-end
2009. The 9.0% QoQ increase in provision expense in the quarter was mainly
driven by loan growth, and our more conservative provisioning standards for
consumer loans introduced in 3Q10.

Operating expenses increased 2.5% QoQ in line with the increase in
business activity. Total headcount and compensation did not vary
significantly in the quarter. Administrative expenses were flat in the
quarter. The efficiency ratio, excluding the one-time charge of Ch$39,800
million recognized in Other operating expenses, reached 34.9% in 4Q10.

ROAE reached 27.9% in 2010 and net income was up 10.6%

In 2010 (12M10), net income attributable to shareholders totaled
Ch$477,155 million (Ch$2.53/share and US$5.62/ADR) and increased 10.6%
compared to results in 2009 (12M09). Gross income, net of provisions and
costs increased 7.4% with a 9.7% increase in net interest revenue, a 3.7%
increase in fee income, an 18.6% decrease in provisions and a 10.8% rise in
operating costs. The Bank's net interest margin reached 5.8%, 30 basis point
above the margins reached in 12M09. The efficiency ratio in 2010 reached
35.3% and the ROAE was 27.9%.

In summary, 2010 was year in which Santander Chile led the rebound in
growth of retail banking activity. At the same time, the Bank, in
anticipation of a more positive economic environment forecast for the coming
years, continued to improve its credit scoring models, began investing in
technology and distribution capabilities while confronting the negative
impacts of the earthquake.

INSTITUTIONAL BACKGROUND

As per the latest public records published by the Superintendency of
Banks of Chile for December 2010, 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
76.91% 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

    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

(1) The results in this report are unaudited.

(2) Earnings per ADR was calculated using an exchange rate of Ch$468.37
per US$.

Robert Moreno, Manager, Investor Relations Department, Banco Santander Chile, Tel: +562-320-8284, Fax: +562-671-6554, rmorenoh at santander.cl