Ewald Stark

Ewald Stark from BICE asked for details on Banco Santander-Chile's expectations for risk-weighted assets (RWA) density for the year-end. He also inquired about the bank's sensitivity to inflation, specifically regarding net income from indexation units relative to inflation, noting a perceived decrease in sensitivity based on monthly financial results.

Answer

Patricia Pérez, CFO, stated that with mid-single-digit loan growth, RWA growth is expected to be around 2% for the year, maintaining density within current levels. She also mentioned an average exposure to inflation of approximately CLP 8.5 billion, translating to about 15 basis points of sensitivity for every 100 basis points in inflation. Cristián Vicuña, Head of Strategy and Investor Relations, confirmed that pre-tax, this means about $80 million per 100 basis points of inflation. Patricia Pérez further clarified that a 5% loan portfolio increase would imply 2-2.5% RWA growth, assuming density maintenance.

Ewald Stark from BICE asked for details on the bank's expectations for risk-weighted assets (RWA) density for the year-end. He also inquired about the bank's sensitivity to inflation, noting a perceived decrease, and asked for expectations regarding net income from indexation units relative to inflation going forward.

Answer

Patricia Pérez, CFO, stated that with mid-single-digit loan growth, risk-weighted assets are expected to grow around 2% for the year, maintaining density. She also indicated an average exposure to inflation of approximately CLP 8.5 billion for the year, translating to about 15 basis points of sensitivity for every 100 basis points in inflation. Cristián Vicuña, Head of Strategy and Investor Relations, clarified that this means roughly $80 million pre-tax per 100 basis points of inflation movement from the readjustment part of Net Interest Income (NII). Patricia Pérez confirmed that a 5% loan portfolio increase would imply around 2%-2.5% RWA growth, assuming density maintenance.

Ewald Stark inquired about the reasons for a lower percentage of hedged fuel during the quarter, asking if it's driven by booking trends, oil forecasts, or a discrepancy with financial statements.

Answer

Roberto Alvo, CEO of LATAM Airlines Group, clarified that the fuel hedge percentages (47% for Q4 2025, 33% for Q1 2026) are consistent with the company's policy and standard coverage. He noted that the earnings release provides more updated figures as of November 14, 2025, compared to the financial statements' September 30 reporting.

Ewald Stark questioned the lower percentage of hedged fuel for the current quarter and upcoming periods, seeking clarification on the drivers, such as booking trends or oil price forecasts, and specifically asked about a discrepancy between the 26% hedge for the next 12 months in financial statements versus higher quarterly figures.

Answer

CEO Roberto Alvo clarified that the fuel hedge percentages (47% for Q4, 33% for Q1) are consistent with policy and standard coverage. CFO Ricardo Bottas added that the financial statements' 26% figure for the next 12 months is a weighted average, while the earnings release provides more updated, specific quarterly percentages as of November 14, 2025.