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Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile (BCH) AI Stock Analysis

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BCH

Banco De Chile

(NYSE:BCH)

Rating:73Outperform
Price Target:
$32.00
â–²(7.53% Upside)
Banco De Chile's strong financial performance and attractive valuation are the primary drivers of its stock score. While technical indicators suggest a neutral trend, the company's robust profitability and appealing dividend yield provide a solid investment case. Monitoring debt levels and macroeconomic challenges is advised.

Banco De Chile (BCH) vs. SPDR S&P 500 ETF (SPY)

Banco De Chile Business Overview & Revenue Model

Company DescriptionBanco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. It operates through Retail Banking, Wholesale Banking, and Treasury and Money Market segments. The company offers deposit products, such as checking accounts, current accounts, demand deposits and accounts, saving accounts, and time deposits; commercial, mortgage, consumer, working capital, syndicated, and installment loans; and credit cards. It also provides leasing, factoring, and foreign trade services; international and treasury banking services; and financial advisory services. In addition, the company offers liquidity management services, debt instruments, and derivative contracts and leases, as well as financial transaction and currency trading services; and securities brokerage, mutual funds management, wholesale customer, investment banking and management, and insurance brokerage services. As of December 31, 2021, it operated through a network of 272 branches and 1,761 ATMs. The company serves individuals, small and medium-sized companies, corporate clients, and large companies. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.
How the Company Makes MoneyBanco de Chile generates revenue through various key streams, including interest income from loans and credit facilities, fees from banking services, and commissions for investment products. The bank's interest income primarily comes from lending activities to individuals and businesses, where it charges interest on outstanding loans. Additionally, BCH earns revenue from transaction fees, account maintenance fees, and service charges related to its various banking products. The bank also engages in wealth management and investment advisory services, which contribute to its earnings. Significant partnerships with other financial institutions and participation in the capital markets further enhance its revenue potential.

Banco De Chile Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial results and operational efficiency, with Banco de Chile maintaining a robust capital position and high asset quality. However, loan growth remained subdued, and the macroeconomic environment posed challenges, including inflationary pressures and political uncertainties.
Q2-2025 Updates
Positive Updates
Strong Net Income and ROE
Banco de Chile reported a net income of CLP 654 billion YTD with a growth of 2% and an ROAE of 21.9% as of June 2025.
Resilient Operating Revenues
Operating income totaled CLP 763 billion in Q2 2025, with customer income rising by 2.7% year-on-year and fee income increasing by 8.1% annually.
Leadership in Net Income Market Share
Banco de Chile outperformed its peers in both net income market share and return on average assets.
Cost Control and Efficiency
Operating expenses remained flat compared to the first quarter of 2025 and increased by only 3% year-over-year, below the inflation rate of 4.5%.
High Asset Quality and Coverage
Nonperforming loans stood at 1.47% with a coverage ratio of 252%, significantly above peers.
Solid Capital Base
Common Equity Tier 1 ratio was 14%, with a total Basel III capital ratio of 17.8%, well above the regulatory minimum.
Negative Updates
Subdued Loan Growth
Total loans grew by only 3.9% year-over-year, reflecting subdued business dynamics across the industry.
Challenges in Commercial Loans
Commercial loans posted a moderate increase of only 1%, constrained by weak investment and ongoing political uncertainty.
Volatility in Inflation and Interest Rates
Inflation remained above the Central Bank's 3% target, impacting the net interest margin and creating uncertainty for future rates.
Unstable Labor Market
Unemployment rate increased to 8.9% in June, up 60 basis points from a year earlier, indicating mixed signals in the labor market.
Company Guidance
In Banco de Chile's second quarter 2025 results conference call, the bank reported a net income of CLP 654 billion, marking a year-to-date growth of 2% and achieving a return on average equity (ROAE) of 21.9%. The results were attributed to strong customer income, improved asset quality, and increased loan activity in targeted segments. The Chilean economy showed signs of recovery with a GDP growth of 2.3% year-on-year in the first quarter and 2.9% in the second quarter. Inflation trends indicated a downward trajectory with a headline rate of 4.1% in June, while the Central Bank's policy rate was lowered to 4.75%. The bank's operating revenues remained strong at CLP 763 billion, driven by a 2.7% increase in customer income and an 8.1% rise in fee income. Banco de Chile's efficiency ratio improved to 36.4%, and the net interest margin was maintained at 4.7%. The bank's capital position remained robust, with a common equity Tier 1 ratio of 14%, allowing flexibility for future growth opportunities.

Banco De Chile Financial Statement Overview

Summary
Banco De Chile exhibits strong financial performance with consistent revenue and profit growth, robust cash generation, and a solid equity position. However, the increase in debt and fluctuations in cash flow management warrant monitoring.
Income Statement
78
Positive
Banco De Chile has shown consistent revenue growth with the latest TTM revenue of 3.40 trillion, up significantly from last year. The gross profit margin is strong, consistently near 100%, reflecting efficient cost management. The net profit margin also remains robust, though slightly decreased in the latest TTM, indicating profitability strength. However, the decline in EBIT margin in the latest period suggests some pressure on operating efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity position with a decent equity ratio. The debt-to-equity ratio is moderate, indicating manageable leverage. However, the decrease in stockholders' equity and an increase in total debt in the latest TTM data highlight potential concerns about rising financial obligations.
Cash Flow
75
Positive
Operating cash flow has improved significantly, showing strong cash generation capabilities. The free cash flow has also grown compared to the previous period, indicating robust financial health. The operating cash flow to net income ratio remains favorable, supporting ongoing profitability. However, fluctuations in investing and financing activities suggest potential volatility in cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.54T4.65T2.81T5.31T2.21T1.92T
Gross Profit2.71T2.69T2.63T2.71T2.21T1.92T
EBITDA1.70T1.68T1.79T1.76T1.05T667.09B
Net Income1.28T1.25T1.37T1.45T792.92B401.63B
Balance Sheet
Total Assets53.77T52.06T55.72T55.26T51.70T46.10T
Cash, Cash Equivalents and Short-Term Investments5.69T2.04T10.52T7.50T7.64T4.44T
Total Debt12.48T9.98T10.47T10.41T10.09T9.27T
Total Liabilities48.37T45.55T49.64T50.40T47.48T42.37T
Stockholders Equity5.40T6.50T6.08T4.86T4.22T3.73T
Cash Flow
Free Cash Flow1.68T379.42B1.64T-411.72B2.36T471.70B
Operating Cash Flow1.74T396.64B1.73T-333.58B2.43T519.65B
Investing Cash Flow2.14T-58.34B-346.50B-72.64B-2.90T209.88B
Financing Cash Flow-3.73T-1.56T-1.56T-815.23B1.35T1.46T

Banco De Chile Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.76
Price Trends
50DMA
28.78
Positive
100DMA
29.40
Positive
200DMA
26.59
Positive
Market Momentum
MACD
0.13
Negative
RSI
61.81
Neutral
STOCH
86.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCH, the sentiment is Positive. The current price of 29.76 is above the 20-day moving average (MA) of 28.93, above the 50-day MA of 28.78, and above the 200-day MA of 26.59, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCH.

Banco De Chile Risk Analysis

Banco De Chile disclosed 31 risk factors in its most recent earnings report. Banco De Chile reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our loan portfolio is subject to risk of prepayment, which could have an adverse effect on our results of operations. Q4, 2022
2.
Changes in tax law could adversely affect our net income and could also result in higher taxes on distributions to our foreign shareholders. Q4, 2022
3.
Enhanced ESG and climate change disclosure may impose additional costs on our bank. Q4, 2022

Banco De Chile Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$13.20B14.1116.25%12.96%-8.82%4.87%
76
Outperform
$11.46B10.1424.13%5.31%12.43%56.30%
73
Outperform
$14.62B11.3922.07%7.07%-13.16%-8.10%
72
Outperform
$20.69B12.2718.54%5.36%5.16%27.77%
70
Outperform
$19.41B18.889.43%5.87%-3.77%-10.59%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
66
Neutral
$13.13B6.778.90%3.37%-3.55%1.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BCH
Banco De Chile
29.76
6.54
28.17%
BSBR
Banco Santander Brasil
5.24
-0.08
-1.50%
BSAC
Banco Santander Chile
25.02
5.98
31.41%
CIB
Bancolombia
50.54
22.93
83.05%
BAP
Credicorp
259.98
100.58
63.10%
WF
Woori Finance Holdings Co
53.23
17.66
49.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2025