Skip to Content

Banco De Chile ADR Stock Quote BCH

Rating as of

Morningstar's Banco De Chile ADR Stock Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Inflation Leads to Higher Revenue and Earnings for Banco de Chile in the Second Quarter

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

Narrow-moat-rated Banco de Chile reported strong second-quarter results as the bank benefits from high inflation and rising interest rates in Chile. Net revenue increased 72.5% from last year and 23.6% from last quarter to 846.8 billion CLP. Additionally, earning per ADR share of $0.93 were 111% higher than last year and translates to a return on average equity of 39.9% for the firm, far above the bank's average performance. We had expected Banco de Chile to produce strong results with inflation as a tailwind, and as we incorporate these results, we do not plan to materially alter our $18.50 fair value estimate for the bank.

Unlock Our Full Analysis With Morningstar Investor

Key Statistics - BCH

Company Profile - BCH

Business Description

Operating under three separate brand names (Banco de Chile, Banco Edwards-Citi, and Banco CrediChile) Banco de Chile is the second largest in the country by loans and third largest by deposits. Banco de Chile generates most of its net interest income (roughly 60% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans, with 25% of its outstanding loans being made to firms with more than 10,000 million CLP in revenue. Outside of its banking business, Banco de Chile is the largest asset manager in the country and one of the largest security brokerages, supporting its substantial fee-based revenue.

Contact
Paseo Ahumada 251
Santiago, Chile
T +56 226533535
Industry Banks - Regional
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 12,284

Related News - BCH