Banco Santander Santiago:Leading performance

in retail banking

May 2006

2

Banco Santander Chile caution that this presentation contains forward looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macro-economic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America, could adversely affect our business and financial performance.

Note: the information contained in this presentation is not audited. Nevertheless, the consolidated accounts are prepared on the basis of generally accepted accounting principles

Important information

3Main points

■ Chile: a sound and fast growing economy

■ A financial system with high growth potential, especially in retail banking

■ Santander Santiago: Chile’s leading retail franchise

■ Strategic focus: increase profitability by expanding retail banking activities. 2005 & 1Q06 results in line with this goal

■ Positive 2006-07 outlook

4

■ Solid fundamentals: high growth, low interest and inflation rates, fiscal surplus, balanced current account and high savings rate

■ Stability: fiscal and monetary policy based on transparent rules and policies

■ Open economy: (average tariff < 2%); Free trade agreements with USA, Europe, China, Canada, Korea and New Zealand. Talks with India and Japan

■ Some risk factors: deceleration of the world economy; unexpected downward shifts in prices of commodities; overheating of local economy

Healthy environment for banksHealthy environment for banksHealthy environment for banksHealthy environment for banks

Stability of the rules helps to sustain economic growthMacroeconomic scenario

5

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

0 2 / 0 1 / 2 0 0 4 0 2 / 0 5 / 2 0 0 4 0 2 / 0 9 / 2 0 0 4 0 2 / 0 1 / 2 0 0 5 0 2 / 0 5 / 2 0 0 5 0 2 / 0 9 / 2 0 0 5 0 2 / 0 1 / 2 0 0 6

Source: Bloomberg, JP Morgan & Standard & Poor’s

USA AAA

UK AAA

Spain AAA

Portugal AA

Italy AA-

Chile A

Santander Santiago A

Czech A-

Poland BBB+

Mexico BBB

Russia BBB-

SPREAD OVER U.S. T-BILLS(Basis points)

SOVEREIGN RATINGS

Low country risk reflects Chile’s stability and strengthsMacroeconomic scenario

EMBI index

CHILE index68

191

6

7Main points

■ Chile: a sound and fast growing economy

■ A financial system with high growth potential, especially in retail banking

■ Santander Santiago: Chile’s leading retail franchise

■ Strategic focus: increase profitability by expanding retail banking activities. 2005 & 1Q06 results in line with this goal

■ Positive 2006-07 outlook

8

Total loans, constant US$ billion as of 1Q 2006

Loans to individuals growing above 22% per annum

2 8 2 9

2 62 4

2 11 9

1 7

2 3 ,02 2 ,3

2 5 ,2

1 3 ,8

S e p .0 3

M a r .0 4

S e p .0 4

M a r .0 5

S e p .0 5

M a r -0 6

L o a n s t o I n d i v i d u a l s *

5 85 9

5 55 1

4 84 64 5

1 5 ,21 3 ,2

6 ,5

- 0 , 6

S e p .0 3

D i c .0 3

M a r .0 4

J u n .0 4

S e p .0 4

D i c .0 4

M a r .0 5

J u n .0 5

S e p .0 5

D i c .0 5

M a r -0 6

C o r p o r a t e a n d P u b l i c S e c t o r L o a n s

6 8

7 5

8 58 9

1 8 ,4

1 6 ,01 1 ,6

3 , 2

S e p - 0 3 M a r - 0 4 S e p - 0 4 M a r - 0 5 S e p - 0 5 M a r - 0 6

T o t a l L o a n s

Volume Annual growth, %

* Loans to individuals = Consumer + residential mortgage Source: Superintendence of Banks

Financial System

9

8 38 7

5 76 2

6 87 3

8 0

1 9 ,3

0 ,0

2 0 ,01 7 ,5

S e p .0 3

M a r .0 4

S e p .0 4

M a r .0 5

S e p .0 5

M a r -0 6

C u s t o m e r f u n d s ( D e p o s i t s + F u n d s )

7 07 2

6 45 9

5 45 0

4 8

1 8 ,6

1 3 ,1

1 ,3

2 0 , 5

S e p . 0 3 M a r . 0 4 S e p . 0 4 M a r . 0 5 S e p . 0 5 M a r - 0 6

D e p o s i t s

1 3

1 51 6

1 31 4

1 1

9

1 4 ,4

1 3 ,3

5 7 ,0

- 6 ,7S e p . 0 3 M a r . 0 4 S e p . 0 4 M a r . 0 5 S e p . 0 5 M a r - 0 6

A s s e t s u n d e r m a n a g e m e n t

Volume Annual growth, %

Customer funds, constant US$ billion as of 1Q 2006

Healthy growth of deposits and assets managed

Source: Superintendence of Banks

Financial System

10

6 4 7 0 7 9

1 1 5

1 5 7 1 6 9

1 9 9 7 2 0 0 1 2 0 0 5 E U - 1 2 U K U S

CHILE

Loans / GDP, %

High potential to increase bank penetration levels...

Source: National Central Banks, European Intelligence Unit and FED. As of 12-31-05 except US as of 09-30-05

Financial System

11

5 1 %

1 1 8 %

C h i l e D e v e l o p e d m a r k e t s

* Consumer + mortgage. Source: Superintendency of Banks, Central Banks & European Intelligence Unit. Figures as of Dec. 2005 except USA 09/2005** Source: Banco Central de Chile, Informe de Estabilidad Financiera, 2º Semester 2005

Household debt** / Disposable income

9 68 8

5 3

2 3

U K U S E U - 1 2 C h i l e

6 15 2

4 6

3 3

U K U S E U - 1 2 C h i l e

Loans to individuals* / GDP, %

Loans to individuals* / Total loans

… especially in retail bankingFinancial System

12

5 % 5 %4 %

3 % 3 % 3 %2 % 2 % 2 % 2 % 2 % 2 % 1 %

US

A

UK

Ge

rm

an

y

Ta

iwa

n

S.

Ko

re

a

S.

Afr

ica

Ja

pa

n

Ru

ss

ia

Po

lan

d

Ar

ge

ntin

a

Br

as

il

Ch

ile

Mé

xic

o

6 8 %

3 1 % 2 6 % 2 0 % 1 9 % 1 7 % 1 1 % 1 0 % 8 % 5 % 4 % 1 % 1 %

US

A

Bra

sil

Ta

iwa

n

UK

S.

Ko

rea

S.

Afr

ica

Ge

rma

ny

Ch

ile

Ja

pa

n

Mé

xic

o

Po

lan

d

Ru

ss

ia

Arg

en

tin

a

Source: Merrill Lynch

MUTUAL FUNDS / GDP, %

NON-LIFE INSURANCE / GDP, %

High potential in non-lending productsFinancial System

Figures as of December 2005

13

• Branches per 10,000 Inhabitants

• Nº Account per Inhabitants

• Nº ATM per 1,000 Inhabitants

• Nº Cards per 1,000 Inhabitants

• Credit Card

• Debit Card

• Nº Transactions per Inhabitant

• Checking

• Payments with Cards

5.3

2.4

0.8

1,122

1,055

38

87

6.6

1.4

0.7

529

910

23

45

0.75

0.3

0.2

80

338

6

13

1.3

0.4

0.7

233

607

137

8

1.0

0.1

0.2

176

200

19

4

UK Europe Mexico BrazilChile

Low penetration levels even compared to regional peers

Source: División América, Grupo Santander Central Hispano for Chile, EU, Mexico and Brazil. Bank for International Settlements for

US and UK

3.6

n.a

1.3

4,384

902

126

126

US

Financial System

14Main points

■ Chile: a sound and fast growing economy

■ A financial system with high growth potential, especially in retail banking

■ Santander Santiago: Chile’s leading retail franchise

■ Strategic focus: increase profitability by expanding retail banking activities. 2005 & 1Q06 results in line with this goal

■ Positive 2006-07 outlook

15

* Time deposits + checking accounts + mutual funds

Amount Rank

Assets US$ 28.5 bn. 1

Loans US$ 19.1 bn. 1

Client funds* US$ 19.9 bn. 1

Net income (1Q 06) US$ 124mn. 1

Branches 361 1

ATMs 1,395 1

Customers 2.2 mn. 1

Figures as of 3.31.06

A strong competitive position in the Chilean marketSantander Santiago’s franchise

Santander is leader in profitability, size and efficiencySantander is leader in profitability, size and efficiencySantander is leader in profitability, size and efficiencySantander is leader in profitability, size and efficiency

16

Largest client base with low penetration levelesFigures for middle-upper & upper income individuals, as of 2005

1 out of 3 clients has checking account

1 out of 3 clients has credit card

1 out 10 clients has consumer credit

Within clients with checking accounts:

1 out of 10 has a mutual fund

1 out of 5 has a mortgage

Santander Santiago’s franchise

17

8%

47%

18%

17%

10%

Core revenues by segment*

* Core revenue : net interest income + fees

** SMEs includes Institutional Lending

2%

42%

14%

23%

20%

Loans by segment

Individuals

Middle Market

SMEs**

Corporate & Treasury

Strong retail banking activities

56% Individuals + SMEs56% Individuals + SMEs

Individuals

Middle Market

SMEs**

64% Individuals + SMEs64% Individuals + SMEs

Santander Santiago’s franchise

Other2% Other

8%Corporate & Treasury

Figures for 2005

18

BIS RATIO (April 06)*BIS RATIO (April 06)* 12.9% 12.9% TIER ITIER I 9.3% 9.3% TIER IITIER II 3.6% 3.6%

BIS RATIO (April 06)*BIS RATIO (April 06)* 12.9% 12.9% TIER ITIER I 9.3% 9.3% TIER IITIER II 3.6% 3.6%

Santander Santiago has the best risk rating in Latin America:

S&P: “A”, Fitch: “A”, Moody’s: “Baa1”

Moody’s Financial Strength: “B-”; Top 5 among emerging banks.

Outlook: Positive

CapitalStrong capital base to support growth

A unique position to benefit from an expanding retail marketA unique position to benefit from an expanding retail marketA unique position to benefit from an expanding retail marketA unique position to benefit from an expanding retail market

* Ex-dividend

19Main points

■ Chile: a sound and fast growing economy

■ A financial system with high growth potential, especially in retail banking

■ Santander Santiago: Chile’s leading retail franchise

■ Strategic focus: increase profitability by expanding retail banking activities. 2005 & 1Q06 results in line with this goal

■ Positive 2006-07 outlook

20

Strengthening our leadership in retail banking

Santander Chile: Strategic Focus 2006-2008

1. Growth above competition in retail banking

2. Increase client base and cross-selling by improving client services and expanding distribution network

3. Improve efficiency through gains in productivity and cost control in order to help finance investments in retail

4. Proactive management of asset quality in order to balance growth in retail banking with normalization of provision expense levels

Strategy

21

Loans, Ch$ billion

1. Growth above competition in retail bankingStrong growth in lending to individuals and SMEs

4,4344,689

4,9645,300

5,6055,866

4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06

Retail Loans

25.1%

VolumeCh$ bn

% Chg.YoY

Individuals 4,372 23.3% Consumer 1,480 28.0%

Mortgage 2,381 26.5%

SMEs 1,495 30.7%

Retail 5,867 25.1%

Institutional 183 16.2%

Middle-Market 2,125 14.5%

Corporate 1,428 4.3%

Total* 10,737 17.8%

* Total Loans includes Other non-segmented loans

22

Gaining market share in key products

Source: Superintendence of Banks

Market share as of 03.31.06, % and YoY change in basis points

1. Growth above competition in retail banking

Share % Chg. bp

Individuals 25.3 +80Consumer 25.7 +40Mortgage 25.1 +90

Corporate & Middle market 21.9 -50Commercial 20.7 +0Leasing 31.5 +140Foreign trade 19.6 -140

Total Loans 23.0 -10# Checking accounts 25.6 +200# Credit cards 37.7 +110

23

Quarterly net interest income (Ch$ million) and margins*(%)

Better asset mix improves the net interest margin

* Net interest income + foreign exchange transactions / Average earning assets

1. Growth above competition in retail banking

118,148141,120

1Q 05 1Q 06

1Q 05 1Q 06

+19.4%

4.15%

4.37%

475,973548,563

2004 2005

2004 2005

4.52%

4.74%+22 bp

+15.3%

+22 bp

24

2 . 0 4 2

2 . 2 8 6

M a r - 0 5 M a r - 0 6

2. Increase client base and cross-selling

217

280

Mar-05 Mar-06

TOTAL CLIENTS

11.9%

4 04 6

M a r - 0 5 M a r - 0 6

29.0%

CROSS-SOLD CLIENTS W/ CHECKING*

* Clients that use 4 or more products including checking (excludes Santander Banefe) ** Santander Banefe: clients that use 2 or more products including a transactional product

CROSS-SOLD BANEFE**

1 9 5

2 8 1

M a r - 0 5 M a r - 0 6

44.2%16.7%

CROSS-SOLD SMEs*

Clients, thousand

A larger and more profitable client base

25

Larger and more profitable client base drives fee growth

2. Increase client base and cross-selling

Fee income, Ch$ billion

Fees over cost ratio reached record level of 55.6% in 1Q 2006Fees over cost ratio reached record level of 55.6% in 1Q 2006Fees over cost ratio reached record level of 55.6% in 1Q 2006Fees over cost ratio reached record level of 55.6% in 1Q 2006

26

Costs under control. Growing efficiently

3. Improve efficiency

Efficiency ratio, %

Record efficiency ratio in 1Q 2006Record efficiency ratio in 1Q 2006Record efficiency ratio in 1Q 2006Record efficiency ratio in 1Q 2006

1Q05 1Q06Chg. 06 / 05, %

Personnel & Adm. 55,772 59,841 7.3%

Amortizations 8,726 9,076 4.0%

Total 64,498 68,917 6.9%

41.8% 39.1% 39.9% 45.6%38.3%

1Q05 2Q05 3Q05 4Q05 1Q06

Efficiency Ratio & Operating Expenses

27

Expanding our distribution network

3. Improve efficiency

ATMsBRANCHES

3 1 5 3 1 6 3 2 7 3 3 53 5 2 3 6 1

4 Q 0 4 1 Q 0 5 2 Q 0 5 3 Q 0 5 4 Q 0 5 1 Q 0 6

1 .1 9 0 1 .1 8 7 1 .2 2 51 .3 2 2

1 .4 2 2 1 .3 9 5

4 Q 0 4 1 Q 0 5 2 Q 0 5 3 Q 0 5 4 Q 0 5 1 Q 0 6

+45 (14.2%) +208 (17.5%)

Strengthening distribution capabilities

Bank: 15-20 new branches a year

Banefe: 15-20 new branches a year

Complementary channels (Internet, ATMs, Call Center)

28

Sound asset quality

Provision expense expected to grow in line with retail activityProvision expense expected to grow in line with retail activityProvision expense expected to grow in line with retail activityProvision expense expected to grow in line with retail activity

4. Proactive management of asset quality

Provision expense, Ch$ million

16,99512,109

17,793 16,635

25,471

0.95%

0.75%

1Q05 2Q05 3Q05 4Q05 1Q06

Provision Expense Ch$ million & % of loans

0.93

1.38

135.1 145.2

31.03.05 31.03.06PDLs Coverage

PDLs and Coverage ratio, %

29

2 1 , 12 3

1 8 , 3

2 3 , 7

1 9 , 51 8 , 5

S a n t a n d e r P e e r G r o u p S y s t e m

ROE 2005 2006

* As reported by the Superintendence of Banks; unconsolidated figures. Peer Group: Banco de Chile, BCI, Corpbanca & BBVASource: Superintendence of Banks

260 bp -350 bp 20 bp

4 3

5 7 , 2 5 3 , 4

4 0 , 1

5 5 , 7 5 1 , 7

S a n t a n d e r P e e r G r o u p S y s t e m

COST / INCOME

-290 bp -150 bp -170 pb

4 , 3

3 , 33 , 9

4 , 7

3 , 44 , 1

S a n t a n d e r P e e r G r o u p S y s t e m

NET INTEREST MARGIN

4 5 , 74 1 , 2

3 2 , 5

5 4 , 6

3 7 , 6 3 5 , 7

S a n t a n d e r P e e r G r o u p S y s t e m

FEES / COSTS

40 bp 10 bp 20 bp 890 bp -360 bp 320bp

Solid ratios compared with competition*Ratios as of 3.31.06. YoY increase in basis points

Overall Performance

30Main points

■ Chile: a sound and fast growing economy

■ A financial system with high growth potential, especially in retail banking

■ Santander Santiago: Chile’s leading retail franchise

■ Strategic focus: increase profitability by expanding retail banking activities. 2005 & 1Q06 results in line with this goal

■ Positive 2006-07 outlook

31Positive Outlook 2006-07

A growing and sound economic environment should sustain growth in 2006-07

We will continue to deepen our strong competitive advantages in retail banking in terms of client base, distribution and clients service

Growth in retail banking should help to sustain our high margins and push fee income

World class efficiency levels should improve. Economies of scale, further productivity initiatives and top of the line systems (Altec-Altair) should allow us to grow efficiently

Asset quality should remain under control. Provision expense should move in line with retail activities