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Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile
(NYSE:BCH)
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Rating:73Outperform
Price Target:
$32.00
â–²(6.67% 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)
Market Cap
$15.20B
Dividend Yield7.01%
Average Volume (3M)308.57K
Price to Earnings (P/E)11.8
Beta (1Y)0.49
Revenue Growth-13.16%
EPS Growth-8.10%
CountryUS
Employees11,614
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.62
Shares Outstanding505,085,420
10 Day Avg. Volume353,866
30 Day Avg. Volume308,569
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.02
Forecast
1Y Price Target
$31.00Price Target Upside3.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Banco De Chile Business Overview & Revenue Model
Company DescriptionBanco de Chile (BCH) is one of the largest and oldest banks in Chile, providing a comprehensive range of financial services to individual and corporate clients. The bank operates primarily in the banking and financial services sector, offering products such as personal and commercial loans, mortgages, credit cards, investment services, and wealth management. With a robust network of branches and ATMs across the country, Banco de Chile serves millions of customers, contributing significantly to the Chilean financial market.
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
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.78
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.54T | 4.65T | 2.81T | 5.31T | 2.21T | 1.92T |
| Gross Profit | 2.71T | 2.69T | 2.63T | 2.71T | 2.21T | 1.92T |
| EBITDA | 1.70T | 1.68T | 1.79T | 1.76T | 1.05T | 667.09B |
| Net Income | 1.28T | 1.25T | 1.37T | 1.45T | 792.92B | 401.63B |
Balance Sheet | ||||||
| Total Assets | 53.77T | 52.06T | 55.72T | 55.26T | 51.70T | 46.10T |
| Cash, Cash Equivalents and Short-Term Investments | 5.69T | 2.04T | 10.52T | 7.50T | 7.64T | 4.44T |
| Total Debt | 12.48T | 9.98T | 10.47T | 10.41T | 10.09T | 9.27T |
| Total Liabilities | 48.37T | 45.55T | 49.64T | 50.40T | 47.48T | 42.37T |
| Stockholders Equity | 5.40T | 6.50T | 6.08T | 4.86T | 4.22T | 3.73T |
Cash Flow | ||||||
| Free Cash Flow | 1.68T | 379.42B | 1.64T | -411.72B | 2.36T | 471.70B |
| Operating Cash Flow | 1.74T | 396.64B | 1.73T | -333.58B | 2.43T | 519.65B |
| Investing Cash Flow | 2.14T | -58.34B | -346.50B | -72.64B | -2.90T | 209.88B |
| Financing Cash Flow | -3.73T | -1.56T | -1.56T | -815.23B | 1.35T | 1.46T |
Banco De Chile Technical Analysis
Positive
30.00
Price Trends
29.01
Positive
29.57
Positive
27.24
Positive
Market Momentum
0.29
Positive
53.45
Neutral
61.53
Neutral
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 30 is above the 20-day moving average (MA) of 29.89, above the 50-day MA of 29.01, and above the 200-day MA of 27.24, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.53 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $13.74B | 14.69 | 14.39% | 12.61% | -8.82% | 4.87% | |
76 Outperform | $12.46B | 11.09 | 16.23% | 5.05% | 12.43% | 56.30% | |
73 Outperform | $15.20B | 11.82 | 22.07% | 7.01% | -13.16% | -8.10% | |
73 Outperform | $20.97B | 12.44 | 16.02% | 5.28% | 5.16% | 27.77% | |
68 Neutral | $1.98B | 5.80 | 13.98% | 0.64% | -47.41% | -18.95% | |
63 Neutral | $3.12B | 7.28 | 8.04% | 2.49% | -57.78% | -67.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BCH
Banco De Chile
30.00
5.92
24.58%
BSBR
Banco Santander Brasil
5.49
0.47
9.36%
BSAC
Banco Santander Chile
26.35
6.43
32.28%
CIB
Bancolombia
51.93
24.31
88.02%
BAP
Credicorp
263.66
92.19
53.76%
WF
Woori Finance Holdings Co
56.42
20.69
57.91%
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.