Chile Q2: Santander Up 40%; CMPC, Cencosud Profits Fall

Chile · BUSINESS & MARKETS

Chile’s corporate results split sharply across sectors: inflation lifted Santander’s banking income, while CMPC and Cencosud absorbed weaker margins, comparison effects and non-operating pressure.

One reporting season, three different stories

The second-quarter releases from Banco Santander Chile, forest-products group CMPC and regional retailer Cencosud offer a compact picture of how uneven Chile’s corporate cycle has become. The bank converted inflation-linked income and lower provisions into a surge in profitability. CMPC kept revenue broadly stable but lost margin to higher costs and a difficult comparison. Cencosud’s digital and loyalty indicators grew, yet reported earnings were hit by weaker operating and non-operating results.

The headline divergence is unusually wide. Santander’s quarterly profit rose about 40% both sequentially and annually. By contrast, CMPC’s first-half net income dropped 74%, and Cencosud’s profit attributable to controlling shareholders fell 79.6%. Those percentages are not directly comparable accounting measures, but together they show why investors need to look below a single Chile macro narrative.

Why Santander Chile accelerated

Santander Chile reported second-quarter net income attributable to owners of CLP 383 billion (about US$416 million), compared with roughly CLP 273 billion in both the first quarter of 2026 and the second quarter of 2025. First-half profit reached CLP 656 billion (about US$712 million), up 19.2% year on year, with six-month ROAE of 27.2%.

The main earnings lever was Chile’s inflation-indexed UF unit. UF variation reached 2.5% in the quarter, against 0.3% in the first quarter and 1.0% a year earlier. Santander’s net interest income and readjustments rose 26.9% sequentially, lifting its quarterly net interest margin to 4.7%. Lower loan-loss provisions also helped, while cost of risk remained contained at 1.22%.

This was not only an accounting inflation effect. Total loans grew 1.3% quarter on quarter, mortgage lending advanced 2.0%, deposits increased 4.5%, and customer funds rose 4.0%. The customer base reached more than 4.8 million, including 2.7 million active customers. Santander now guides to full-year ROAE above 24%, up from 22%–24%, and a net interest margin of about 4.1%.

CMPC: stable sales did not protect profit

CMPC’s first-half sales were almost unchanged at US$3.733 billion, but adjusted EBITDA fell 14% to US$525 million and the margin narrowed by 2.3 percentage points to 14.1%. Net income dropped from US$131 million to US$33 million. In the second quarter alone, net income was US$9 million, down 89% from US$81 million a year earlier.

Part of the fall reflects an unusually demanding base. The sale of TENSA added US$46 million to first-half 2025 EBITDA. CMPC also estimated a US$40 million first-half impact from higher Brent-linked logistics and production costs after mitigation and hedging. Foreign-exchange results deteriorated by US$32 million, although a US$38 million tax benefit partly softened the decline.

The portfolio was not uniformly weak. Softys, CMPC’s tissue and personal-care business, increased first-half sales 10% to US$1.728 billion as volumes recovered in Brazil and Mexico. That gain offset declines in pulp and Biopackaging revenue, but not enough to preserve consolidated margins.

Cencosud’s digital growth meets a profit shock

Cencosud reported second-quarter revenue of CLP 4.095 trillion (about US$4.44 billion), down 1.8% year on year. Adjusted EBITDA fell 15.8% to CLP 307.9 billion (about US$334 million), and the reported margin contracted from 8.8% to 7.5%. The company recorded a quarterly net loss of CLP 18.1 billion (about US$19.6 million), reversing a profit of CLP 103.0 billion (about US$111.7 million) a year earlier.

For the first half, profit attributable to controlling shareholders fell 79.6% to CLP 39.8 billion (about US$44.4 million). Excluding Argentina’s IAS 29 hyperinflation and currency-accounting adjustments, second-quarter net income was positive at CLP 21.5 billion (about US$23.3 million) but still fell 84.2%. Cencosud attributed the pressure partly to the non-cash inflation effect of UF-denominated debt on non-operating results.

Operating indicators were more resilient than the bottom line. Online sales rose 14.6% and generated 8.9 million transactions. Active loyalty customers reached 31 million, Prime subscribers increased 31.3%, and private-label penetration rose to 18.9%. Cencosud opened the first three Don Salva hard-discount stores and maintained its plan for about 40 locations by year-end.

What investors should take from the split

Santander’s result shows how an inflation-linked balance sheet can benefit when UF variation rises and credit costs remain controlled. CMPC’s figures show the opposite sensitivity: stable sales can still produce a sharp earnings fall when logistics costs, currency effects and one-off comparison items move against the company. Cencosud sits between them, with improving digital engagement but weaker reported profitability.

For international investors, the immediate lesson is sector selection. Santander’s upgraded guidance rests on profitability already delivered in the first half. CMPC must defend margins while energy and freight remain volatile. Cencosud must prove that its transformation spending, discount format and larger loyalty ecosystem can translate customer activity into earnings.

What to watch next

The next checkpoints are Santander’s ability to keep ROAE above 24% as inflation normalizes, CMPC’s pulp pricing and Brent-linked cost exposure, and Cencosud’s second-half margin recovery. For the retailer, the pace and economics of the Don Salva rollout will matter more than store-count headlines alone. For all three, Chile’s inflation path, consumer demand and exchange rate will continue to affect reported numbers in different ways.

Frequently Asked Questions

Sources

• Banco Santander Chile — second-quarter 2026 results
• U.S. SEC — Santander Chile second-quarter management commentary and updated outlook
• CMPC Investor Relations — second-quarter 2026 earnings release
• Cencosud — second-quarter 2026 earnings release

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