Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile
(NYSE:BCH)
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Rating:67Neutral
Price Target:
$40.00
▲(6.55% Upside)
Action:DowngradedDate: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
Top‑tier Profitability / ROE
Banco de Chile’s demonstrated top‑quartile returns (ROA 2.2%, ROAC guidance 19–21%) reflect durable franchise profitability and pricing power across retail and corporate segments. High returns provide persistent internal capital to fund growth, pay dividends, and absorb cyclical shocks without eroding core franchise economics.
Negative Factors
Sharp 2025 Revenue Contraction
A steep revenue decline in 2025 (-36.5%) materially erodes the revenue base that supports operating leverage and margins. Even with strong profitability metrics, a sustained lower top line reduces cushion for expense absorption, limits reinvestment and dividend flexibility, and heightens sensitivity to any further income normalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Top‑tier Profitability / ROE
Banco de Chile’s demonstrated top‑quartile returns (ROA 2.2%, ROAC guidance 19–21%) reflect durable franchise profitability and pricing power across retail and corporate segments. High returns provide persistent internal capital to fund growth, pay dividends, and absorb cyclical shocks without eroding core franchise economics.
Read all positive factors
Banco De Chile (BCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.59B
Dividend Yield5.56%
Average Volume (3M)394.70K
Price to Earnings (P/E)14.6
Beta (1Y)0.50
Revenue Growth-11.64%
EPS Growth-8.75%
CountryUS
Employees11,614
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.57
Shares Outstanding505,085,420
10 Day Avg. Volume477,072
30 Day Avg. Volume394,703
Financial Highlights & Ratios
PEG Ratio-11.60
Price to Book (P/B)2.99
Price to Sales (P/S)5.74
P/FCF Ratio39.35
Enterprise Value/Market Cap1.50K
Enterprise Value/Revenue9.24
Enterprise Value/Gross Profit10.58
Enterprise Value/Ebitda17.40
Forecast
1Y Price Target
$39.00Price Target Upside3.89% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)2.81
Revenue Forecast (FY)$3.66B
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 p...
How the Company Makes Money
Banco de Chile primarily makes money through (1) net interest income and (2) fee and commission income, supplemented by treasury/market activities and other operating income. Net interest income is earned from the spread between interest collected...
Banco De Chile Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong franchise metrics — market leadership in profitability, robust capital and provisioning, high efficiency and healthy digital/customer traction — which are offset by continued weakness in commercial/wholesale loan demand, normalization of market‑driven income and some near‑term increases in cost of risk. Management provided constructive guidance (ROAC 19%–21%, efficiency ~39%, cost of risk 1.1%–1.2%) and signaled intent to deploy excess capital to grow, but noted macro and policy timing risks that could delay a fuller lending recovery.Positive Updates
Top Industry Profitability and Returns
Banco de Chile delivered record leadership in 2025 with net income of CLP 1.2 trillion for the year and CLP 266 billion in the quarter, a return on average assets of 2.2% versus the industry 1.3%, and return on average capital guidance of 19%–21% for 2026.
Negative Updates
Weak Commercial and Wholesale Loan Demand
Total loans grew only 0.8% YoY to CLP 39.2 trillion; commercial loans fell 3% YoY, wholesale loans declined 5.5% YoY and corporate banking loans dropped 8.8% YoY, driven by subdued private investment, prepayments and FX appreciation reducing foreign currency exposures.
Read all updates
Q4-2025 Updates
Positive
Negative
Top Industry Profitability and Returns
Banco de Chile delivered record leadership in 2025 with net income of CLP 1.2 trillion for the year and CLP 266 billion in the quarter, a return on average assets of 2.2% versus the industry 1.3%, and return on average capital guidance of 19%–21% for 2026.
Read all positive updates
Company Guidance
Banco de Chile's guidance centered on a 2026 baseline of Chile GDP ≈2.4%, inflation converging to ~3% and the policy rate normalizing toward a neutral 4.25% (with scope to reach 4.0% if the peso strengthens); industry forecasts cited ~4.5% nominal loan growth, NIM ≈3.5–3.7%, NPLs falling toward 2.2–2.3% and a credit‑loss expense ratio ~1.2–1.3%. Management expects Banco de Chile to outpace the industry (management referenced ~7% nominal loan growth for the bank, with consumer ~6%, mortgage ~5% and commercial ~8%), and gave 2026 targets of return on average capital 19–21%, efficiency around 39% and cost of risk 1.1–1.2%, noting it starts from a strong capital/coverage position (CET1 14.5%, coverage ~223%).Banco De Chile Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| 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 | 8.08T | 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
Negative
37.54
Price Trends
39.70
Negative
38.29
Negative
33.69
Positive
Market Momentum
-0.67
Negative
46.47
Neutral
40.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCH, the sentiment is Negative. The current price of 37.54 is above the 20-day moving average (MA) of 37.01, below the 50-day MA of 39.70, and above the 200-day MA of 33.69, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $26.95B | 11.79 | 19.28% | 4.82% | 8.72% | 27.70% | |
70 Outperform | $20.38B | 8.44 | 17.70% | 10.29% | -6.79% | 16.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $18.59B | 14.56 | 21.25% | 5.56% | -11.64% | -8.75% | |
65 Neutral | $15.65B | 6.51 | 9.31% | 3.71% | -2.90% | 16.10% | |
57 Neutral | $22.65B | 9.97 | 11.15% | 4.98% | 1.13% | -11.93% | |
56 Neutral | $15.66B | 12.58 | 21.37% | 4.29% | 12.43% | 56.30% |
* Financial Sector Average
BCH
Banco De Chile
36.87
13.41
57.18%
BSBR
Banco Santander Brasil
6.04
1.89
45.54%
BSAC
Banco Santander Chile
33.24
13.16
65.54%
CIB
Grupo Cibest
72.78
37.57
106.71%
BAP
Credicorp
338.83
177.86
110.49%
WF
Woori Finance Holdings Co
65.90
35.44
116.35%
Banco De Chile Corporate Events
Banco de Chile Renews Board and Appoints New Leadership on March 26, 2026
Mar 27, 2026
At its Ordinary Shareholders’ Meeting held on March 26, 2026, Banco de Chile fully renewed its Board of Directors following the expiration of the prior board’s three-year term, appointing a new slate of regular directors and two altern...
Banco de Chile Shareholders Approve 2025 Dividend Payout
Mar 26, 2026
At its Ordinary Shareholders’ Meeting held on March 26, 2026, Banco de Chile approved the payment of a cash dividend of CLP 9.99757030464 per share, drawn from net income for the 2025 financial year. The decision, to be formally communicated...
Banco de Chile Announces Board Resignation and Immediate Independent Director Appointment
Mar 12, 2026
On March 12, 2026, Banco de Chile announced that regular board member Andrés Ergas Heymann resigned from his position, with the board formally acknowledging and accepting the resignation at its ordinary meeting held the same day. In line with...
Banco de Chile Files English Translation of 2025 Annual Report with SEC
Mar 6, 2026
Banco de Chile, a major Chilean commercial bank serving retail and corporate clients, has provided an English translation of its local Annual Report for 2025 to international investors and regulators. This follows its earlier filing of Chilean GAA...
Banco de Chile Raises UF 1 Million in Local Senior Bond Placement Dated March 5, 2026
Mar 5, 2026
On March 5, 2026, Banco de Chile announced that it had completed a new bond placement in the local Chilean market, reinforcing its access to domestic capital funding. The transaction involved the issuance of senior, dematerialized, bearer bonds, s...
Banco de Chile Sets March 26, 2026 Shareholders’ Meeting and Proposes 84.7% Payout of 2025 Earnings
Mar 2, 2026
Banco de Chile has called an Ordinary Shareholders’ Meeting for March 26, 2026 in Santiago to review and approve its 2025 financial statements and related reports. The agenda underscores standard governance matters for a major listed bank, i...
Banco de Chile Raises Long-Term Local Funding with Serie FG Bond Placement
Feb 10, 2026
On February 10, 2026, Banco de Chile informed regulators and local stock exchanges that it completed a placement of senior, dematerialized, bearer bonds in the Chilean local market. The issuance involved Serie FG bonds registered with the Chilean ...
Banco de Chile Reports Audited 2025 Results and Releases 4Q25 Management Commentary
Feb 3, 2026
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 s...
Banco de Chile Calls March Shareholders’ Meeting to Approve 84.7% Payout of 2025 Earnings
Jan 29, 2026
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 th...
Banco de Chile Announces Board Resignation and New Vice-Chairman
Jan 21, 2026
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 departur...
Banco de Chile Raises Long-Term Funding With Local Market Bond Placement on January 15, 2026
Jan 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...
Banco de Chile Raises Long-Term Funding With Three-Series Local Bond Placement
Jan 14, 2026
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. Th...
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 10...
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 tota...
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.