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Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile
(NYSE:BCH)
Rating:74Outperform
Price Target:
$32.00
â–²(7.96% Upside)
Banco De Chile (BCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.76B
Dividend Yield7.1%
Average Volume (3M)345.81K
Price to Earnings (P/E)11.5
Beta (1Y)0.54
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. Volume271,885
30 Day Avg. Volume345,809
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.84
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.02
Forecast
1Y Price Target
$31.00Price Target Upside4.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 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: 8.29%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Banco de Chile reported strong financial performance with solid net income, high ROAE, robust capital ratios, and efficient cost management. However, challenges remain with subdued loan growth and high inflation. The bank's strategic focus on digital innovation and customer income growth positions it well for future opportunities.Q2-2025 Updates
Positive Updates
Strong Net Income and ROAE
Banco de Chile reported a net income of CLP 654 billion with a year-to-date growth of 2%, resulting in a Return on Average Equity (ROAE) of 21.9%.
Robust Capital and Asset Quality
The bank maintains a strong capital base with a Common Equity Tier 1 ratio of 14% and a total Basel III capital ratio of 17.8%. Additionally, the bank has best-in-class asset quality and a coverage ratio of 252%.
High Efficiency Levels
Operating expenses increased by 3% year-over-year, below the inflation rate of 4.5%, resulting in an efficiency ratio of 36.4%.
Growth in Customer Income and Fees
Customer income grew by 2.7% year-on-year, driven by a 6.2% increase in net income from loans and an 8.1% rise in fee income, particularly from mutual fund management and transactional products.
Innovative Digital Initiatives
Banco de Chile launched new digital tools, including enhanced authentication tools, integration of the payment app, and new credit simulators. The FAN digital accounts achieved a 30% cross-sell rate.
Negative Updates
Subdued Loan Growth
Total loans increased by only 3.9% year-over-year, reflecting subdued business dynamics across the industry, lagging behind economic activity.
High Inflation and Unemployment
Headline inflation was at 4.1% in June 2025, above the Central Bank's 3% target, and the unemployment rate increased to 8.9%.
Decoupling of Loan Cycle from GDP Growth
The loans to GDP ratio is currently at 76-77%, well below the pre-pandemic levels, highlighting a decoupling from GDP growth.
Company Guidance
In the second quarter of 2025, Banco de Chile 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 bank's performance was bolstered by robust customer income, enhanced asset quality, and targeted loan activity, alongside efforts in cost control and efficiency. As the Chilean economy shows signs of recovery with a GDP growth of 2.3% in the first quarter, Banco de Chile's strategic focus remains on maintaining best-in-class asset quality and a strong capital base. The labor market exhibited mixed signals, with a rise in unemployment to 8.9%, but private consumption was supported by a 3.6% year-on-year increase in real wages. Inflation pressures have eased, with the Central Bank reducing the policy rate to 4.75%, and further cuts are anticipated if conditions remain favorable. The bank revised its GDP forecast for 2025 upward to 2.3% and expects a gradual decline in inflation, supporting a continued robust financial performance.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 stable balance sheet. However, the increase in debt and slight decline in some profitability margins need 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
29.64
Price Trends
29.14
Positive
29.01
Positive
26.10
Positive
Market Momentum
-0.02
Negative
61.32
Neutral
88.24
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 29.64 is above the 20-day moving average (MA) of 28.23, above the 50-day MA of 29.14, and above the 200-day MA of 26.10, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 88.24 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.73B | 11.20 | 16.25% | 13.51% | -8.45% | 29.39% | |
78 Outperform | $19.96B | 12.92 | 16.35% | 5.58% | 3.89% | 15.26% | |
74 Outperform | $14.76B | 11.46 | 22.07% | 7.10% | -13.16% | -8.10% | |
74 Outperform | $4.65B | 1,068.76 | 0.11% | 3.04% | -62.73% | -99.74% | |
74 Outperform | $11.35B | 10.70 | 24.02% | 5.42% | 18.54% | 65.80% | |
74 Outperform | $3.45B | 8.81 | 15.46% | 3.12% | -48.81% | 0.18% | |
58 Neutral | HK$111.68B | 6.58 | -4.20% | 3.95% | 9.04% | -46.99% |
* Financial Sector Average
Performance Comparison
BCH
Banco De Chile
29.64
5.94
25.06%
BMA
Banco Macro SA
72.16
15.01
26.26%
BSAC
Banco Santander Chile
24.53
4.94
25.22%
CIB
Bancolombia
48.46
19.03
64.66%
BBAR
Banco BBVA Argentina
16.47
6.06
58.21%
BAP
Credicorp
249.37
92.90
59.37%
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.