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Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile
(NYSE:BCH)
Rating:73Outperform
Price Target:
$35.00
â–²(18.00%Upside)
Banco De Chile (BCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.12B
Dividend Yield7.09%
Average Volume (3M)267.23K
Price to Earnings (P/E)11.5
Beta (1Y)0.57
Revenue Growth-17.02%
EPS Growth-10.73%
CountryUS
Employees11,614
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.69
Shares Outstanding505,085,420
10 Day Avg. Volume239,988
30 Day Avg. Volume267,233
Financial Highlights & Ratios
PEG Ratio-39.57
Price to Book (P/B)2.26
Price to Sales (P/S)0.00
P/FCF Ratio6.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside-12.34% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 makes money primarily through interest income, which is generated from loans and credit products offered to its customers. The bank lends money to individuals and businesses and earns interest over the life of these loans. Additionally, BCH earns revenue from fees and commissions associated with banking services such as account maintenance, transaction processing, and advisory services. The bank also derives income from investment activities, including trading and investment in financial securities. Furthermore, Banco de Chile leverages significant partnerships with international financial institutions to expand its service offerings and enhance its revenue streams.
Banco De Chile Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2024)
| % Change Since: -2.59%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
Banco de Chile demonstrated strong financial performance with record net income and return on capital, significant retail loan growth, and continued digital banking expansion. However, this was partially offset by declines in non-customer income, weak commercial loan growth, exchange rate volatility, and persistent inflation pressures. The overall sentiment is balanced with strong operational highlights but notable macroeconomic challenges.Q4-2024 Updates
Positive Updates
Record Net Income and Return on Capital
Banco de Chile reported a net income of CLP 1,207 billion with a return on average capital of 23.1%, significantly outperforming the industry average of 15.8%.
Strong Retail Loan Growth
Retail loan portfolio represents 65% of the total loan book, with consumer loans and residential mortgages showing significant growth.
Digital Banking Expansion
Continued growth in digital banking, achieving 1.7 million customers, and the launch of new digital accounts and features.
Efficiency and Cost Control
Operating expenses grew by only 1.5%, below inflation, leading to a cost-to-income ratio of 37%, better than peers.
Strong Capital Adequacy
CET1 ratio at 14.4% and total capital adequacy ratio well above regulatory requirements, positioning the bank for future growth opportunities.
Negative Updates
Decline in Non-Customer Income
Non-customer income declined by 38% quarter-on-quarter and 19% annually, mainly due to the end of the FCIC program and lower inflation.
Weak Commercial Loan Growth
Commercial loans grew by only 0.6%, with sluggish performance attributed to low business and consumer confidence.
Exchange Rate Volatility
The Chilean peso weakened significantly, with the exchange rate averaging CLP 944 per dollar, rising 13% from 2023.
Higher-than-Expected Inflation Persistence
CPI posted a 12-month increase of 4.5% in December 2024, above expectations, due to rising electricity bills and currency weakness.
Company Guidance
In the fourth quarter of 2024, Banco de Chile reported robust financial performance with a net income of CLP 1,207 billion, reflecting a return on average capital of 23.1%, significantly surpassing the local industry's 15.8%. This was fueled by strong margins, asset quality, and efficiency improvements. The Chilean economy expanded by 2.5% in 2024, with commerce and mining sectors showing substantial growth of 7.4% and 6.2% respectively in the fourth quarter. Although the CPI increased by 4.5% due to electricity bill hikes and a weaker peso, the Central Bank maintained the interest rate at 5% after a 625 basis point reduction over the year. Banco de Chile anticipates a 2% GDP growth for 2025, driven by positive export dynamics and domestic demand, projecting a 3.8% inflation rate and stable interest rates. The bank's strategic focus remains on customer satisfaction, efficiency, and sustainability, aiming for a long-term return on average capital of 18%.Banco De Chile Financial Statement Overview
Summary
Banco De Chile exhibits strong financial performance with consistent revenue and profit growth, strong profitability, and cash generation capabilities. However, the increase in debt and slight decline in EBIT margin necessitate 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 | 2.66T | 2.81T | 5.31T | 2.21T | 1.92T |
| Gross Profit | 2.71T | 2.66T | 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 | 1.21T | 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 | 5.62T | 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
29.66
Price Trends
30.18
Negative
27.96
Positive
25.27
Positive
Market Momentum
-0.17
Positive
45.84
Neutral
36.28
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 29.66 is below the 20-day moving average (MA) of 30.03, below the 50-day MA of 30.18, and above the 200-day MA of 25.27, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.28 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.81B | 11.53 | 16.35% | 9.83% | 3.89% | 15.26% | |
76 Outperform | $3.47B | 8.93 | 15.46% | 36.26% | -48.81% | 0.18% | |
76 Outperform | $11.77B | 10.87 | 24.02% | 5.41% | 18.54% | 65.80% | |
75 Outperform | $11.62B | 13.25 | 15.99% | 15.28% | -5.45% | 3.43% | |
74 Outperform | $4.53B | 1,045.11 | 0.11% | 30.13% | -46.30% | -79.35% | |
73 Outperform | $15.12B | 11.46 | 23.88% | 7.09% | -17.02% | -10.73% | |
67 Neutral | $16.67B | 11.44 | 9.71% | 3.91% | 11.61% | -9.60% |
* Financial Sector Average
Performance Comparison
BCH
Banco De Chile
29.66
8.29
38.79%
BMA
Banco Macro SA
71.59
21.84
43.90%
BSAC
Banco Santander Chile
24.57
6.79
38.19%
CIB
Bancolombia
45.09
17.24
61.90%
BBAR
Banco BBVA Argentina
16.98
9.23
119.10%
BAP
Credicorp
223.90
76.53
51.93%
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.