Banco De Chile (BCH) AI Stock Analysis

• Market Cap: $21.43B
• Dividend Yield: 5.56%
• Average Volume (3M): 423.25K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.45
• Revenue Growth: -11.64%
• EPS Growth: -8.75%
• Country: US
• Employees: 11,614
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 505,085,420
• 10 Day Avg. Volume: 380,388
• 30 Day Avg. Volume: 423,251
• PEG Ratio: -11.60
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 5.74
• P/FCF Ratio: 39.35
• Enterprise Value/Market Cap: 1.52K
• Enterprise Value/Revenue: 10.79
• Enterprise Value/Gross Profit: 12.35
• Enterprise Value/Ebitda: 20.31
• 1Y Price Target: $40.00
• Price Target Upside: -7.47% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $48.00 ▲(11.03% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is held back primarily by weaker financial quality signals—especially the sharp 2025 revenue decline and volatile cash flow—despite strong profitability. Technicals are supportive with a clear uptrend, while valuation is reasonable with a solid dividend yield and the earnings call guidance is broadly constructive but tempered by soft commercial loan demand and a higher cost-of-risk outlook.

Positive Factors

High profitability and returns leadership

Sustained top‑quartile profitability and explicit ROAC targets (19%–21%) indicate durable franchise economics and pricing power across retail and corporate segments. High returns support internal capital generation, enable dividend capacity and create buffer to invest in growth or absorb shocks over months.

Strong capital base and provisioning coverage

Robust CET1 and elevated coverage provide long‑term loss absorption and strategic flexibility. Strong capital and provisioning reduce the need for emergency capital raises, support credit risk appetite discipline, and underpin confidence in dividend and growth plans for the coming quarters.

Low funding costs and sticky deposit franchise

A large, low‑cost deposit base is a durable structural advantage that supports net interest margin resilience and underwriting capacity. Lower funding costs give the bank room to compete on pricing, maintain margins if rates shift, and fund loan growth without relying heavily on volatile wholesale markets.

Negative Factors

Sharp 2025 revenue decline and cash flow volatility

A marked top‑line drop and swingy operating cash flow weaken confidence in sustainable internal capital generation. Volatility complicates multi‑period planning, may pressure future dividend or capital deployment decisions, and raises reliance on capital markets if adverse trends persist over several quarters.

Weak commercial and wholesale loan demand

Sustained weakness in commercial and wholesale lending undermines a key revenue engine and limits diversification. If private investment and corporate activity remain subdued, loan book expansion and fee income recovery may lag for multiple quarters, constraining durable earnings growth.

Elevated cost‑of‑risk guidance for 2026

An upward shift in expected credit losses signals structurally higher charge levels ahead, which will compress net income and reduce internal capital generation versus prior years. Higher cost of risk also tightens underwriting economics and may constrain return targets if credit trends persist.

Banco De Chile Business Overview & Revenue Model

Company Description

Banco 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 Money

Banco de Chile generates revenue primarily through interest income from loans and advances given to customers, which constitutes a significant portion of its earnings. The bank also earns money from fees and commissions related to account maintenance, transaction processing, and wealth management services. Additionally, BCH benefits from income generated through its investment portfolio, including returns on securities and other financial instruments. The bank has established various partnerships with corporations and financial service providers to enhance its product offerings and expand its customer base, which contributes to its overall profitability. Furthermore, fluctuations in interest rates and economic conditions in Chile play a crucial role in influencing its earnings.

Banco De Chile Financial Statement Overview

Summary

Profitability and ROE are strong for a regional bank, but the sharp 2025 revenue contraction and highly volatile cash flow (including steep declines in 2024–2025) reduce confidence in earnings durability. Leverage and a step-down in equity also limit balance-sheet flexibility.

Income Statement

Profitability is strong for a regional bank, with net margins generally in the high-20% range (and ~45% in 2025), and EBIT margins consistently healthy. However, the top line is weakening: revenue declined modestly in 2023–2024 and then dropped sharply in 2025 (-36.5%), which raises questions about earnings durability despite still-solid net income.

Balance Sheet

Returns on equity are consistently attractive (~19%–27%), indicating good underlying profitability. That said, leverage is meaningful with debt-to-equity mostly around ~1.9–2.4, and equity stepped down in 2024–2025 versus prior years, which reduces balance-sheet flexibility if operating conditions tighten.

Cash Flow

Free cash flow tracks net income well in most years (generally near ~95%–98%), but cash flow generation is highly volatile: operating and free cash flow were deeply negative in 2020, surged in 2021 and 2023, and then fell sharply again in 2024–2025 (including ~-80% free cash flow growth in 2025). This variability weakens confidence in the consistency of internally generated capital.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.03T	4.65T	5.09T	5.31T	3.03T
Gross Profit	2.64T	2.69T	2.77T	2.71T	2.20T
EBITDA	1.61T	1.68T	1.79T	1.82T	1.41T
Net Income	1.19T	1.25T	1.37T	1.45T	1.06T
Balance Sheet
Total Assets	54.10T	52.06T	55.72T	55.11T	51.43T
Cash, Cash Equivalents and Short-Term Investments	0.00	5.14T	6.78T	7.51T	7.10T
Total Debt	11.38T	12.06T	11.67T	10.62T	9.27T
Total Liabilities	48.30T	45.55T	49.64T	49.68T	46.61T
Stockholders Equity	5.80T	6.50T	6.08T	5.43T	4.82T
Cash Flow
Free Cash Flow	441.09B	379.42B	1.64T	50.49B	2.94T
Operating Cash Flow	458.87B	396.64B	1.73T	128.61B	3.01T
Investing Cash Flow	-1.83T	-58.34B	-346.50B	-847.82B	-2.99T
Financing Cash Flow	2.24T	-1.56T	-1.56T	-161.80B	1.38T

Banco De Chile Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 43.23 is below the 20-day moving average (MA) of 44.37, above the 50-day MA of 41.21, and above the 200-day MA of 33.71, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 17.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCH.

Banco De Chile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	74 Outperform	$27.52B	14.15	18.88%	4.82%	8.72%	27.70%
BSAC	72 Outperform	$16.75B	15.06	24.13%	4.29%	12.43%	56.30%
CIB	70 Outperform	$20.11B	19.93	17.06%	10.29%	-6.79%	16.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCH	67 Neutral	$21.43B	17.13	20.74%	5.56%	-11.64%	-8.75%
BSBR	64 Neutral	$25.28B	23.60	9.34%	4.98%	1.13%	-11.93%
WF	62 Neutral	$19.60B	8.85	―	3.71%	-2.90%	16.10%

Banco De Chile Corporate Events

Banco de Chile Reports Audited 2025 Results and Releases 4Q25 Management Commentary

On February 3, 2026, Banco de Chile released its financial results for the fourth quarter of 2025 and for the year ended December 31, 2025, accompanied by a detailed Management Commentary prepared in line with Chilean Financial Market Commission standards and IFRS Management Commentary guidelines. The bank also disclosed that its consolidated financial statements for 2025 received an unmodified audit opinion from KPMG on January 29, 2026, and that the independent accountants’ review of the related Management Commentary found no significant modifications were needed, reinforcing the reliability and regulatory compliance of its reported historical financial information for investors and other stakeholders.

The most recent analyst rating on (BCH) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Calls March Shareholders’ Meeting to Approve 84.7% Payout of 2025 Earnings

Banco de Chile’s board of directors, at an ordinary session held on January 29, 2026, agreed to call an ordinary shareholders’ meeting for March 26, 2026, to vote on a proposal to distribute 84.7% of the bank’s net income from the fiscal year ended December 31, 2025, as dividends. The proposal includes retaining CLP 182.34 billion to adjust paid-in capital and reserves for inflation and distributing the remaining earnings as a dividend of CLP 9.99757030464 per share across 101,017,081,114 shares, while shareholders will also be asked to elect nine regular directors and two alternates, reflecting recent bylaw changes and signaling continued emphasis on shareholder returns and governance renewal.

The most recent analyst rating on (BCH) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Announces Board Resignation and New Vice-Chairman

At an extraordinary board meeting held on January 21, 2026, Banco de Chile announced that director and vice-chairman Francisco Pérez Mackenna tendered his resignation, effective January 31, 2026, with the board formally accepting his departure and recognizing his contributions to the bank’s development. The board simultaneously resolved to appoint Óscar Hasbún Martínez as a new director, effective February 1, 2026, until the next ordinary shareholders’ meeting, and to name existing director Jean‑Paul Luksic Fontbona as vice-chairman from the same date, signaling a planned and orderly refresh of the bank’s top governance positions that could influence its strategic oversight but maintains continuity in leadership.

The most recent analyst rating on (BCH) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Raises Long-Term Funding With Local Market Bond Placement on January 15, 2026

On January 15, 2026, Banco de Chile announced that it had completed the placement of three series of senior, dematerialized bearer bonds in the local Chilean market, reinforcing its funding base through long-term instruments. The bank issued Serie FU bonds totaling UF 500,000 maturing November 1, 2032 at an average rate of 2.78%, Serie HH bonds totaling UF 400,000 maturing December 1, 2036 at 2.87%, and Serie HW bonds totaling UF 50,000 maturing June 1, 2044 at 2.89%, a move that underscores active use of domestic capital markets to secure medium- and long-term financing and may support greater lending capacity and balance sheet stability for stakeholders.

The most recent analyst rating on (BCH) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Raises Long-Term Funding With Three-Series Local Bond Placement

On January 14, 2026, Banco de Chile informed regulators and local stock exchanges that it had completed the placement of three series of senior, dematerialized bearer bonds in the Chilean local market, reinforcing its long-term funding profile. The bank issued Serie FU bonds totaling CLF 500,000 maturing November 1, 2032 at an average placement rate of 2.81%, Serie GG bonds totaling CLF 350,000 maturing May 1, 2035 at 2.89%, and Serie HW bonds totaling CLF 300,000 maturing June 1, 2044 at 2.91%, underscoring continued investor appetite for Banco de Chile’s credit and providing the institution with diversified, fixed-rate funding across multiple maturities.

The most recent analyst rating on (BCH) stock is a Sell with a $36.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Places Long-Term Serie HW Bonds in Local Market

On January 12, 2026, Banco de Chile reported that it had completed a placement of senior, dematerialized, bearer bonds in the local Chilean market, classified as Serie HW and registered with the Financial Market Commission. The issuance totaled 100,000 Chilean inflation-indexed units (UF), carries a maturity date of June 1, 2044, and was placed at an average rate of 2.92%, underscoring the bank’s continued use of long-term local debt markets to support its funding structure and balance sheet management.

The most recent analyst rating on (BCH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Places Long-Term Serie HW Bonds in Local Market

On January 8, 2026, Banco de Chile announced it had completed a placement of senior, dematerialized bearer bonds in the local Chilean market. The issuance involved Serie HW bonds, registered with the Chilean Financial Market Commission, for a total amount of UF 750,000, maturing on June 1, 2044, at an average placement rate of 2.93%. This long-term bond placement strengthens the bank’s local funding base and supports its capacity to finance future lending and investment activities, underscoring its active participation in Chile’s domestic capital markets and providing additional fixed-income instruments for local investors.

The most recent analyst rating on (BCH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Announces New Subsidiary Director Election Policy Approval

On November 27, 2025, Banco de Chile announced that it has been informed of the approval of a new policy for the election of directors in its subsidiary companies by LQ Inversiones Financieras S.A. This development is significant as it may influence the governance and strategic direction of Banco de Chile’s subsidiaries, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (BCH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Approves Bylaw Amendments to Enhance Governance

On November 10, 2025, Banco de Chile held an Extraordinary Shareholders’ Meeting where several amendments to the bank’s bylaws were approved. Key changes include reducing the number of regular directors, adjusting quorum requirements for board meetings, and incorporating technological means for shareholder participation. These amendments aim to streamline governance and enhance operational efficiency, potentially impacting the bank’s strategic direction and stakeholder engagement.

The most recent analyst rating on (BCH) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Successfully Places Bonds in Local Market

On November 6, 2025, Banco de Chile announced the successful placement of senior, dematerialized, and bearer bonds in the local market. This issuance, registered under Serie FU Bonds, amounted to 400,000 Chilean UF with a maturity date of November 1, 2032, and an average placement rate of 2.89%. This strategic financial move is expected to strengthen Banco de Chile’s market position and provide additional capital for its operations, potentially impacting stakeholders positively by enhancing the bank’s financial stability.

The most recent analyst rating on (BCH) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.