Banco de Chile (CHILE) Q1 2026 earnings summary

Executive summary

• Net income for 1Q26 was Ch$268,628 million, down 18.3% year-over-year, mainly due to lower non-customer income, higher credit loss expenses, and increased operating costs.

• Despite the decline, profitability metrics such as ROAC (16.7%) and efficiency ratio (38.4%) remained above industry averages.

• The bank maintained leadership in demand deposits and commercial loans, with a strong digital and customer-centric strategy.

• Recognized for service quality and sustainability, with improved ESG ratings and digital innovation.

Financial highlights

• Operating revenues for 1Q26 were Ch$748,885 million, a 3.9% decrease year-over-year.

• Credit loss expense rose 26.6% to Ch$114,178 million, reflecting higher risk costs in retail banking.

• Operating expenses increased 2.5% to Ch$287,925 million, mainly due to IT and marketing investments.

• Net interest margin dropped to 4.10% from 4.96% a year earlier, mainly due to lower inflation and interest rates.

• Cost-to-income ratio increased to 38.4%, but still outperformed the industry average of 46.1%.

• Total loan portfolio grew 2.2% year-over-year to Ch$40,200,709 million, with sequential growth of 2.6%.

Outlook and guidance

• Nominal loan growth for FY2026 is projected at ~7%, with NIM expected around 4.6%.

• Credit loss expense ratio is forecasted at 1.1%-1.2%, and cost-to-income ratio at ~38.0%.

• ROAC guidance for FY2026 is 21.5%-22.5%, assuming no major non-recurring events.

• The bank aims to grow above industry in total loans, especially in consumer and commercial segments.