UPDATE: Citigroup Downgrades Banco Santander Chile to Sell on Regulatory Challenges

Citigroup downgraded its rating on Banco Santander Chile

from Neutral to Sell. Citigroup commented, "We have thoroughly revised our earnings model for SAN Chile (Figures 26-32), post 2Q12 earnings release and reflecting the information for July and August disclosed by the Chilean bank regulator (Superintendencia de Bancos e Instituciones Financieras, or SBIF). … We lower our PT for SAN Chile by 20% to Ch$30.00. Currently trading 22% above the “fair” P/B multiple that our triangle of bank valuation proprietary methodology calculates, our new price target implies an ETR of -7.3% (including a 3.8% dividend yield). Therefore, we downgrade our rating on Santander Chile to Sell (3) from Neutral (2)." Banco Santander Chile closed at $73.80 on Thursday.