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Banco De Chile (BCH)
NYSE:BCH

Banco De Chile (BCH) AI Stock Analysis

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BCH

Banco De Chile

(NYSE:BCH)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
$45.00
â–˛(9.17% Upside)
Banco De Chile's overall score reflects strong financial performance and strategic progress, supported by reasonable valuation and a solid dividend yield. However, technical indicators suggest caution due to potential overbought conditions, and high leverage remains a risk factor.
Positive Factors
Strong Financial Performance
The consistent net income growth and high ROAC indicate effective capital utilization and robust financial health, supporting long-term profitability.
High Capital Strength
A strong capital base enhances the bank's ability to absorb financial shocks and supports sustainable growth, ensuring stability in volatile markets.
Efficiency and Digital Transformation
Operational synergies and increased productivity from digital transformation initiatives boost efficiency, reducing costs and enhancing competitive positioning.
Negative Factors
Subdued Loan Growth
Limited loan growth can restrict revenue expansion and market share gains, potentially impacting long-term profitability and competitive edge.
High Leverage
High leverage increases financial risk, potentially limiting the bank's ability to invest in growth opportunities and manage economic downturns effectively.
Impact of Inflation on Margins
Margin compression from inflation impacts can reduce profitability and limit the bank's ability to invest in strategic initiatives, affecting long-term growth.

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 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 Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
Banco de Chile demonstrated strong financial performance and strategic progress despite challenges in loan growth and margin compression due to lower inflation. The bank maintained high capital strength and received significant recognition for customer satisfaction.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Banco de Chile reported a net income of CLP 927 million, representing a year-on-year growth of 1.9% and achieving a return on average capital (ROAC) of 22.3%.
Positive Economic Indicators
Chilean GDP growth maintained an upward trajectory with a 3.1% year-on-year increase in the second quarter, supported by a rebound in domestic demand.
Efficiency and Digital Transformation
The integration of SOCOFIN into Banco de Chile's operations generated cost and operational synergies. Productivity in consumer loan originations increased by 13% in operations and 11% in amounts sold.
High Capital Strength
The CET1 ratio reached 14.2%, with a total Basel III capital ratio of 18%, reflecting strong capital foundation and leadership in the industry.
Recognition and Awards
Banco de Chile ranked first in customer satisfaction at the Procalidad Awards and was honored as the best among large financial institutions.
Negative Updates
Subdued Loan Growth
Total loans grew by only 3.7% year-on-year, reflecting subdued credit dynamics across the industry, with particular weakness in consumer lending.
Impact of Inflation on Margins
Margins were compressed due to lower inflation, impacting noncustomer income, which declined by 14.1% year-on-year.
Challenges in Consumer Lending
Consumer loans showed limited growth, constrained by cautious borrowing behavior and higher interest rates.
Company Guidance
During Banco de Chile's third-quarter 2025 results conference call, the bank reported net income of CLP 927 million, marking a year-on-year growth of 1.9% and resulting in a Return on Average Capital (ROAC) of 22.3%. The financial performance was driven by strong customer income, superior asset quality, and continued efficiency improvements, despite a challenging macroeconomic environment characterized by modest loan growth. The Chilean economy showed recovery signs, with GDP growth of 3.1% year-on-year in the second quarter of 2025, influenced by increased domestic demand and a significant rise in investment, particularly in machinery and equipment, which surged by 11.4%. The Central Bank's interest rate was maintained at 4.75% in October, following a reduction of 650 basis points from the 2023 peak of 11.25%. The bank anticipates GDP growth of 2.5% in 2025, with inflation expected to decline to 3.9% by December 2025, assuming stable external conditions and no significant currency depreciation. Banco de Chile's strategy focuses on leadership in lending, maintaining a cost-to-income ratio below 42%, and achieving superior service quality, with a return on average capital target of around 22.5% for the full year 2025.

Banco De Chile Financial Statement Overview

Summary
Banco De Chile demonstrates strong profitability with high profit margins and return on equity. However, the decline in revenue growth and high leverage are areas of concern. The cash flow position is improving, but the low operating cash flow coverage ratio suggests a need for better cash flow management.
Income Statement
Banco De Chile shows strong profitability with a TTM gross profit margin of 79.88% and a net profit margin of 36.60%. However, the revenue growth rate has declined by 1.11% in the TTM, indicating a potential slowdown. The EBIT and EBITDA margins are healthy at 45.72% and 48.45%, respectively, reflecting efficient operations despite the revenue dip.
Balance Sheet
The bank has a high debt-to-equity ratio of 2.33, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity remains strong at 21.27%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the substantial total assets suggest a solid asset base.
Cash Flow
Free cash flow has grown by 8.77% in the TTM, indicating improved liquidity. The operating cash flow to net income ratio is low at 0.20, suggesting potential cash flow management issues. However, the free cash flow to net income ratio is robust at 84.55%, reflecting good cash generation relative to profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.16T4.65T5.09T5.31T3.03T2.49T
Gross Profit2.71T2.69T2.77T2.71T2.20T1.38T
EBITDA1.67T1.68T1.79T1.82T1.41T578.21B
Net Income1.27T1.25T1.37T1.45T1.06T401.63B
Balance Sheet
Total Assets55.47T52.06T55.72T55.11T51.43T45.55T
Cash, Cash Equivalents and Short-Term Investments5.85T5.14T6.78T7.51T7.10T4.02T
Total Debt14.20T12.06T11.67T10.62T9.27T9.56T
Total Liabilities49.79T45.55T49.64T49.68T46.61T41.55T
Stockholders Equity5.68T6.50T6.08T5.43T4.82T4.00T
Cash Flow
Free Cash Flow2.23T379.42B1.64T50.49B2.94T-2.52T
Operating Cash Flow2.27T396.64B1.73T128.61B3.01T-2.47T
Investing Cash Flow-34.27B-58.34B-346.50B-847.82B-2.99T210.31B
Financing Cash Flow-511.41B-1.56T-1.56T-161.80B1.38T1.46T

Banco De Chile Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.22
Price Trends
50DMA
37.68
Positive
100DMA
34.21
Positive
200DMA
31.66
Positive
Market Momentum
MACD
0.95
Negative
RSI
69.20
Neutral
STOCH
89.67
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 41.22 is above the 20-day moving average (MA) of 38.73, above the 50-day MA of 37.68, and above the 200-day MA of 31.66, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 69.20 is Neutral, neither overbought nor oversold. The STOCH value of 89.67 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
73
Outperform
$24.03B13.5518.12%4.82%8.72%27.70%
71
Outperform
$20.54B15.9721.29%5.56%-11.64%-8.75%
71
Outperform
$18.23B18.1017.06%10.29%-6.79%16.13%
69
Neutral
$15.60B13.7724.13%4.29%12.43%56.30%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
64
Neutral
$23.80B22.749.34%4.98%1.13%-11.93%
62
Neutral
$13.52B6.429.61%3.71%-2.90%16.10%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BCH
Banco De Chile
41.22
19.21
87.28%
BSBR
Banco Santander Brasil
6.30
2.45
63.81%
BSAC
Banco Santander Chile
33.29
15.34
85.46%
CIB
Grupo Cibest
70.92
41.64
142.21%
BAP
Credicorp
307.15
129.18
72.59%
WF
Woori Finance Holdings Co
56.71
24.70
77.16%

Banco De Chile Corporate Events

Banco de Chile Places Long-Term Serie HW Bonds in Local Market
Jan 12, 2026

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
Jan 8, 2026

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
Nov 28, 2025

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
Nov 10, 2025

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
Nov 6, 2025

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.

Banco de Chile Successfully Places HKD 620 Million Bonds Offshore
Oct 30, 2025

On October 30, 2025, Banco de Chile announced the successful placement of bonds in the offshore market under its Medium Term Notes Program. The bonds, amounting to HKD 620,000,000, have a maturity date of November 12, 2032, and an annual placement rate of 3.735%. This strategic move is expected to enhance Banco de Chile’s financial position and expand its presence in international markets, potentially benefiting stakeholders through increased financial stability and growth opportunities.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 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
Oct 30, 2025

On October 30, 2025, Banco de Chile successfully placed senior, dematerialized, and bearer bonds in the local market. The Serie HW Bonds, registered with the Chilean Financial Market Commission, amounted to 300,000 Chilean UF with a maturity date of June 1, 2044, and an average placement rate of 3.02%. This strategic move is expected to strengthen Banco de Chile’s financial position and enhance its market presence.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Reports Stable Q3 2025 Financial Results
Oct 30, 2025

Banco de Chile announced its financial results for the third quarter of 2025 on October 30, 2025. The bank reported a slight increase in net income and operating revenues compared to the previous year, indicating stable financial performance. The results reflect a 1.9% annual increase in net income and a 0.2% rise in operating revenues. These figures suggest that Banco de Chile is maintaining its strong position in the Chilean banking industry, despite a slight decrease in expected credit losses. The announcement underscores the bank’s resilience and ability to navigate economic challenges, reinforcing its reputation as a solid financial institution in Latin America.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile Releases Q3 2025 Financial Statements
Oct 30, 2025

On October 30, 2025, Banco de Chile released its consolidated financial statements for the period ending September 30, 2025. The report highlights the bank’s financial position, income, and cash flows, reflecting its operational performance over the past months. These statements provide insights into the bank’s financial health and strategic positioning in the Chilean financial market, which is crucial for stakeholders to assess the bank’s stability and growth potential.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 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
Oct 28, 2025

On October 28, 2025, Banco de Chile successfully placed senior, dematerialized, and bearer bonds in the local market. The issuance included Serie GA Bonds amounting to CLF 650,000 with a maturity date of May 1, 2034, and an average placement rate of 2.99%, as well as Serie HW Bonds amounting to CLF 150,000 with a maturity date of June 1, 2044, and an average placement rate of 3.03%. This bond placement is a strategic move to strengthen Banco de Chile’s financial positioning and provide liquidity, potentially impacting stakeholders positively by enhancing the bank’s capital structure.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

Banco de Chile’s Successful AUD 70 Million Bond Placement
Oct 22, 2025

On October 22, 2025, Banco de Chile successfully placed bonds in the offshore market under its Medium Term Notes Program, amounting to AUD 70 million. This strategic financial move, with a maturity date set for October 30, 2035, and an average placement rate of BBSW 3M +1.28%, is expected to strengthen the bank’s financial position and enhance its market presence.

The most recent analyst rating on (BCH) stock is a Hold with a $33.00 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 Extraordinary Shareholders’ Meeting for Bylaw Amendments
Oct 14, 2025

On October 14, 2025, Banco de Chile announced an upcoming Extraordinary Shareholders’ Meeting scheduled for November 10, 2025. The meeting will address several proposed amendments to the bank’s bylaws, including reducing the number of directors and enabling participation in meetings through technological means. These changes are aimed at modernizing the bank’s governance structure and improving operational efficiency, potentially impacting its strategic positioning and stakeholder engagement.

The most recent analyst rating on (BCH) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Banco De Chile stock, see the BCH Stock Forecast page.

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: Nov 08, 2025