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Banco De Chile
(NYSE:BCH)
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Rating:68Neutral
Price Target:
$45.00
▲(10.51% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by financial risks—most notably the swing to negative operating/free cash flow and increased leverage—despite strong profitability and ROE. Technicals are supportive with a clear uptrend and positive MACD, while valuation is reasonable with a moderate P/E and a strong dividend yield.
Positive Factors
High profitability & ROE
Sustained high margins and a ~21.5% ROE indicate a strong franchise with effective loan pricing, fee generation and cost control. Over a 2–6 month horizon this supports internal capital generation, capacity for dividends and reinvestment, and resilience to modest revenue shocks.
Negative Factors
Weak cash generation
Negative operating and free cash flow despite strong accounting profits signals deteriorating cash conversion. This heightens reliance on external funding, strains near-term liquidity options, and questions the durability of reported earnings and dividend capacity until cash flows recover.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & ROE
Sustained high margins and a ~21.5% ROE indicate a strong franchise with effective loan pricing, fee generation and cost control. Over a 2–6 month horizon this supports internal capital generation, capacity for dividends and reinvestment, and resilience to modest revenue shocks.
Read all positive factors
Banco De Chile (BCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.19B
Dividend Yield5.29%
Average Volume (3M)292.94K
Price to Earnings (P/E)16.1
Beta (1Y)0.57
Revenue Growth3.94%
EPS Growth3.40%
CountryUS
Employees11,156
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2448.00
Shares Outstanding505,085,420
10 Day Avg. Volume248,302
30 Day Avg. Volume292,945
Financial Highlights & Ratios
PEG Ratio-11.60
Price to Book (P/B)2.60
Price to Sales (P/S)5.74
P/FCF Ratio23.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.00Price Target Upside10.51% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.72
Revenue Forecast (FY)$3.54B
Banco De Chile Business Overview & Revenue Model
Company Description
Operating across Chile, Banco de Chile (BCH) and its subsidiaries offer a wide array of banking and financial products and services to customers throughout the country. The company's operations are structured into three primary divisions: Retail B...
How the Company Makes Money
Banco de Chile primarily earns money through (1) net interest income—interest collected on loans (e.g., consumer loans, mortgages, and commercial/corporate credit) and interest-bearing assets minus interest paid on funding sources such as customer...
Banco De Chile Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 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
78
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.82T | 3.03T | 4.65T | 5.09T | 5.31T | 3.03T |
| Gross Profit | 2.75T | 2.64T | 2.69T | 2.77T | 2.71T | 2.20T |
| EBITDA | 1.62T | 1.61T | 1.68T | 1.79T | 1.82T | 1.41T |
| Net Income | 1.24T | 1.19T | 1.25T | 1.37T | 1.45T | 1.06T |
Balance Sheet | ||||||
| Total Assets | 55.16T | 54.10T | 52.06T | 55.72T | 55.11T | 51.43T |
| Cash, Cash Equivalents and Short-Term Investments | 1.35T | 6.48T | 5.14T | 6.78T | 7.51T | 7.10T |
| Total Debt | 13.98T | 13.55T | 12.06T | 11.67T | 10.62T | 9.27T |
| Total Liabilities | 49.45T | 47.42T | 45.55T | 49.64T | 49.68T | 46.61T |
| Stockholders Equity | 5.71T | 6.69T | 6.50T | 6.08T | 5.43T | 4.82T |
Cash Flow | ||||||
| Free Cash Flow | -1.29T | 748.78B | 379.42B | 1.64T | 50.49B | 2.94T |
| Operating Cash Flow | -1.24T | 826.08B | 396.64B | 1.73T | 128.61B | 3.01T |
| Investing Cash Flow | -40.07B | -1.19T | -58.34B | -346.50B | -847.82B | -2.99T |
| Financing Cash Flow | -741.71B | 110.76B | -1.56T | -1.56T | -161.80B | 1.38T |
Banco De Chile Technical Analysis
Positive
40.72
Price Trends
39.75
Positive
38.60
Positive
38.17
Positive
Market Momentum
0.59
Negative
59.82
Neutral
74.33
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 40.72 is below the 20-day moving average (MA) of 40.96, above the 50-day MA of 39.75, and above the 200-day MA of 38.17, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 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 0 New Risks
Banco De Chile Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
89 Outperform | $31.86B | 14.99 | 19.66% | 3.77% | 22.61% | 34.04% | |
78 Outperform | $25.13B | 9.98 | 17.47% | 2.97% | -1.31% | -42.23% | |
71 Outperform | $17.12B | 7.77 | 9.28% | 4.34% | 30.88% | 10.24% | |
69 Neutral | $16.53B | 20.77 | 20.90% | 4.43% | -3.09% | 2.72% | |
68 Neutral | $21.19B | 16.06 | 21.49% | 5.37% | 3.94% | 3.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $21.14B | 48.51 | 11.81% | 5.10% | 20.73% | 27.11% |
* Financial Sector Average
BCH
Banco De Chile
42.16
14.78
54.00%
BSBR
Banco Santander Brasil
5.79
1.09
23.17%
BSAC
Banco Santander Chile
35.70
12.85
56.25%
CIB
Grupo Cibest
90.25
45.18
100.24%
BAP
Credicorp
392.57
157.83
67.24%
WF
Woori Finance Holdings Co
70.35
15.63
28.56%
Banco De Chile Corporate Events
Banco de Chile Files Mid‑Year 2026 Consolidated Financial Statements With U.S. SEC
Jul 31, 2026
Banco de Chile, a major Chilean commercial bank serving retail and corporate clients and active in international capital markets, operates its principal executive offices in Santiago. As a foreign private issuer, it files annual reports with the U...
Banco de Chile Posts Reviewed Second-Quarter 2026 Results With Unmodified KPMG Opinion
Jul 31, 2026
On July 31, 2026, Banco de Chile reported its financial results for the second quarter of 2026 and for the six-month period ended June 30, 2026, via a Form 6-K filing with the U.S. Securities and Exchange Commission. The accompanying management co...
Banco de Chile Raises Long-Term Funding with Local Serie GA Bond Placement
Jul 22, 2026
On July 22, 2026, Banco de Chile completed the placement of senior, dematerialized bearer bonds in the local Chilean market, reinforcing its access to domestic funding sources. The issuance involved Serie GA bonds totaling 125,000 inflation-indexe...
Banco de Chile Raises JPY 10 Billion in Offshore Bond Placement Under MTN Program
Jul 21, 2026
Banco de Chile is a leading Chilean financial institution operating in the banking industry, providing a broad range of retail and corporate banking services. The bank serves domestic and international markets, using instruments such as medium-ter...
Banco de Chile Raises Long-Term Funding With Local Serie GA Bond Placement
Jul 20, 2026
On July 20, 2026, Banco de Chile completed a placement of senior, dematerialized bearer bonds in the local Chilean market, underscoring its continued reliance on domestic debt issuance to support funding needs. The transaction involved Serie GA bo...
Banco de Chile Completes Local Placement of Serie FG Bonds on July 8, 2026
Jul 8, 2026
On July 8, 2026, Banco de Chile reported to the Chilean Financial Market Commission that it had completed a placement of senior, dematerialized bearer bonds in the local market. The issuance reflects the bank’s ongoing use of domestic debt m...
Banco de Chile Raises CLF 300,000 Through Local Senior Bond Placement
Jul 7, 2026
On July 7, 2026, Banco de Chile completed a local-market placement of senior, dematerialized, bearer bonds, reinforcing its presence in Chile’s domestic fixed-income market. The bank issued Serie FG bonds, previously registered with the Fina...
Banco de Chile Raises Long-Term Funding with CLF 880,000 Serie FG Bond Placement
Jul 6, 2026
On July 6, 2026, Banco de Chile announced the placement of a new series of senior, dematerialized bearer bonds in the Chilean local market, underscoring its continuing reliance on domestic debt markets for funding. The Serie FG bonds, registered u...
Banco de Chile Raises Long-Term Funding with UF 250,000 Local Bond Placement
Jul 2, 2026
On July 2, 2026, Banco de Chile completed a placement of senior, dematerialized bearer bonds in the Chilean local market, reinforcing its use of domestic capital markets for funding. The issuance involved Serie GA bonds, registered with the Chilea...
Banco de Chile Raises Medium-Term Funding with UF-Denominated Bond Placement
Jul 1, 2026
On July 1, 2026, Banco de Chile completed a local market placement of senior, dematerialized, bearer bonds from its Serie FG issuance registered under number 11/2022 with the Chilean Financial Market Commission. The placement totaled 400,000 Chile...
Banco de Chile Places UF 310,000 in Senior Bonds on Local Market
Jun 30, 2026
On June 30, 2026, Banco de Chile completed the placement of senior, dematerialized bearer bonds in the Chilean local market, reinforcing its funding base through a new issuance. The bank issued Serie FG bonds, registered under number 11/2022 in th...
Banco de Chile Taps Offshore Market With MXN 700 Million Bond Issue
May 12, 2026
On May 12, 2026, Banco de Chile announced that it had placed a new bond issue in the offshore market under its Medium Term Notes program. The bonds, denominated in Mexican pesos for a total of MXN 700 million, carry a maturity date of May 11, 2033...
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.