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Banco De Chile (BCH)
NYSE:BCH
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Banco De Chile
(NYSE:BCH)
73Outperform
Banco De Chile (BCH) vs. S&P 500 (SPY)
Market Cap
$14.33B
Dividend Yield5.53%
Average Volume (3M)366.90K
Price to Earnings (P/E)11.2
Beta (1Y)0.56
Revenue Growth-19.01%
EPS Growth-13.44%
CountryUS
Employees11,614
SectorFinancial
Sector Strength76
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.53
Shares Outstanding505,085,420
10 Day Avg. Volume370,427
30 Day Avg. Volume366,905
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.57
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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-11.23% Downside
Rating ConsensusModerate Sell
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 primarily generates revenue through interest income derived from its extensive portfolio of loans and credit products. This includes personal loans, mortgages, and corporate financing solutions. Additionally, the bank earns non-interest income from fees and commissions related to services such as fund management, insurance products, credit card services, and foreign exchange transactions. Banco de Chile also engages in treasury operations, capitalizing on investment activities and trading of financial instruments. The bank's strategic partnerships and strong customer base contribute significantly to its steady earnings, supported by a robust financial infrastructure and a comprehensive suite of financial solutions tailored to diverse client needs.
Banco De Chile Financial Statement Overview
Summary
Banco De Chile exhibits strong profitability and efficient operations, as evidenced by healthy margins and ROE. However, revenue growth inconsistency and potential risks from lower equity ratios and fluctuating cash flows warrant attention. The company maintains a stable financial position, suitable for its industry.Income Statement
Banco De Chile has demonstrated a solid net profit margin and a steady EBIT margin. However, revenue growth has been inconsistent, with a decline observed in the most recent year. The gross profit margin remains strong, indicating efficient cost management.72
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage, but the equity ratio is on the lower side, which could indicate higher financial risk. Return on equity is robust, reflecting strong profitability relative to equity.68
Positive
Cash Flow
Cash flow analysis shows fluctuations in free cash flow, with recent periods showing a decrease. Operating cash flow to net income ratio indicates potential challenges in cash generation relative to accounting profits, but free cash flow remains positive.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.66T | 2.81T | 3.09T | 2.21T | 1.92T |
| Gross Profit | ||||
| 2.66T | 5.24T | 3.09T | 2.21T | 1.92T |
| EBIT | ||||
| 1.62T | 1.70T | 1.69T | 971.47B | 589.07B |
| EBITDA | ||||
| 0.00 | 0.00 | 1.76T | 1.05T | 667.09B |
| Net Income Common Stockholders | ||||
| 1.21T | 1.37T | 1.45T | 792.92B | 401.63B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.04T | 10.52T | 7.50T | 7.64T | 4.44T |
| Total Assets | ||||
| 52.10T | 55.72T | 55.26T | 51.70T | 46.10T |
| Total Debt | ||||
| 9.98T | 10.47T | 10.41T | 10.09T | 9.27T |
| Net Debt | ||||
| 7.95T | 7.59T | 6.87T | 5.50T | 5.89T |
| Total Liabilities | ||||
| 46.47T | 49.64T | 50.40T | 47.48T | 42.37T |
| Stockholders Equity | ||||
| 5.62T | 6.08T | 4.86T | 4.22T | 3.73T |
| Cash Flow | Free Cash Flow | |||
| 379.42B | 1.64T | -411.72B | 2.36T | 471.70B |
| Operating Cash Flow | ||||
| 396.64B | 1.73T | -333.58B | 2.43T | 519.65B |
| Investing Cash Flow | ||||
| -58.34B | -346.50B | -72.64B | -2.90T | 209.88B |
| Financing Cash Flow | ||||
| -1.56T | -1.56T | -815.23B | 1.35T | 1.46T |
Banco De Chile Technical Analysis
Positive
29.29
Price Trends
26.06
Positive
24.18
Positive
23.59
Positive
Market Momentum
0.63
Negative
70.03
Negative
97.83
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 29.29 is above the 20-day moving average (MA) of 26.76, above the 50-day MA of 26.06, and above the 200-day MA of 23.59, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 70.03 is Negative, neither overbought nor oversold. The STOCH value of 97.83 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 0 New Risks
Banco De Chile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.24B | 16.83 | 9.05% | 9.12% | 40.86% | 236.42% | |
77 Outperform | $10.62B | 12.07 | 15.62% | 15.48% | -0.15% | 8.78% | |
74 Outperform | $4.06B | 10.48 | 16.83% | 7.93% | -40.21% | -16.07% | |
74 Outperform | $14.71B | 10.03 | 16.36% | 5.01% | 5.84% | 12.67% | |
73 Outperform | $11.31B | 12.60 | 16.05% | 2.35% | -22.63% | 32.31% | |
73 Outperform | $14.33B | 11.22 | 21.96% | 5.53% | -19.01% | -13.44% | |
63 Neutral | $12.07B | 9.35 | 8.15% | 79.57% | 12.85% | -5.13% |
* Financial Sector Average
Performance Comparison
BCH
Banco De Chile
29.29
7.77
36.11%
BMA
Banco Macro SA
93.17
45.63
95.98%
BSAC
Banco Santander Chile
24.84
6.60
36.18%
CIB
Bancolombia
41.30
13.73
49.80%
BBAR
Banco BBVA Argentina
20.78
12.74
158.46%
BAP
Credicorp
191.27
34.08
21.68%
Banco De Chile Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 18.58% | Next Earnings Date: Apr 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.Highlights
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.
Lowlights
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%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.