BCH

Banco De Chile

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

Chile

Next Earnings Date

05/05/26

Business Summary

Banco de Chile operates as a regional commercial bank, generating revenue primarily through net interest income on loans and fee-based services tied to deposits, credit products, and corporate banking. Its moat is rooted in domestic scale, customer relationships, and funding stability within Chile’s financial system. Profitability flows from disciplined lending spreads and operational efficiency, reflected in its 22.30% operating margin. The durability of its franchise depends on credit underwriting quality and capital discipline, which directly influence its ability to sustain ROIC at 13.80% while managing leverage at 55.40% debt-to-equity.

VALUATION

P/E

14.7

Market Cap ($M USD)

$19,299

Forward P/E

12.3

PEG

2.2

PRICE TO SALES

5.8

PRICE TO BOOK

3

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

5.70%

Annual Payout

$2.19

Payout Ratio

78.90%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

27.60%

Financial Health & Profitability

Earnings Per Share

$2.90

Next Year EPS Growth Estimate

$3.14

Next Year Revenue Growth Estimate

6.60%

Return on Equity (ROE)

22.30%

Operating Margin

55.40%

Debt-to-Equity

2.5

Piotroski F-Score

5

Altman Z-Score

0.4

Return on Invested Capital (ROIC)

13.80%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Banco de Chile trades at 14.7x earnings and 12.3x forward earnings, which on the surface looks reasonable for a regional bank, but the 2.2 forward PEG suggests growth is not cheap relative to expectations. The real issue is balance sheet risk: an Altman Z-Score of 0.4 signals severe financial stress, which materially offsets the modest valuation. With a $19.3B market cap and 6.60% ROE, this is not a high-return franchise, and the market is likely discounting latent risk rather than mispricing growth. The forward multiple implies moderate optimism, but the credit-risk signal embedded in the Z-score makes this a safety-questioned compounder rather than a clean GARP opportunity.

AI Exposure / Tech Reliance

As a regional bank within Financial Services, Banco de Chile’s AI exposure is operational rather than transformational. AI deployment would primarily improve underwriting, fraud detection, and cost efficiencies, potentially reinforcing its 22.30% operating margin. However, as a traditional bank, it is more likely to benefit incrementally from tech modernization rather than experience disruptive AI-driven upside.

The Bull Case

A value-oriented investor could justify ownership based on profitability resilience and capital efficiency. The bank generates a 13.80% ROIC, which materially exceeds its 6.60% ROE, signaling that core capital allocation and lending economics remain productive. A 22.30% operating margin in a regional banking context is solid, and the Piotroski F-Score of 5 indicates middling but stable financial health rather than deterioration. With a forward P/E of 12.3 and estimated EPS next year of $2.90, investors are paying a reasonable multiple for earnings stability, while collecting a 2.5 TTM yield and a dividend payout ratio listed at $2.19, suggesting income support alongside moderate growth. Institutional ownership at 43.40% adds a layer of sponsorship that can dampen volatility in stressed environments.

The Bear Case

The bear case is defined by structural fragility. An Altman Z-Score of 0.4 is an extreme red flag, implying elevated financial distress risk, which is particularly concerning in a leveraged institution with 55.40% debt-to-equity. The forward PEG of 2.2 signals that projected growth does not justify even the reduced forward multiple, and a 27.60% short float indicates aggressive bearish positioning by the market. A 6.60% ROE is underwhelming for a bank trading at 3x book and 5.8x sales, suggesting valuation compression risk if profitability weakens even modestly.

Market Sentiment & Smart Money

Short Interest %

0.20%

Analyst Consensus

3.29

Average Analyst Price Target

$43.40

Institutional Ownership %

2.60%

1-Year Beta

0.82

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

82.40%%

Distance to 52-Week Low

151.00%%