Banco de Chile (CHILE) Q4 2024 earnings summary

Executive summary

• Achieved net income of CLP 1,207 billion in 2024, maintaining #1 position in net income, net fees, and net interest income among peers, with a return on average capital of 23.1%.

• Maintained leadership in digital banking, customer satisfaction (NPS 76.7%), and mutual funds, with significant advances in ESG, operational efficiency, and talent retention.

• Supported SMEs and led digital banking initiatives, growing FAN accounts by 36% and launching new digital products.

• Recognized for governance, inclusion, sustainability, and received PROCALIDAD Award for customer satisfaction.

• Retail Banking led pre-tax income, contributing 46.3% in FY2024, followed by Wholesale Banking at 43.7%.

Financial highlights

• Full-year net income reached CLP 1,207 billion, down 2.9% year-over-year; Q4 net income was CLP 298 billion.

• Net interest margin for 2024 was 4.88%; fees margin at 1.2%; operating margin at 6.6%.

• Operating revenues grew 1.9% to CLP 3,050 billion; operating expenses rose 1.5% to CLP 1,133 billion.

• Retail loans comprised 65% of the portfolio; total loans grew 3.4% nominally, but declined 1% in real terms.

• Cost-to-income ratio improved to 37.1% for the year, outperforming peers.

Outlook and guidance

• Expect GDP growth of 2% in 2025, with inflation at 3.8%-4.5% and overnight rate at 4.5%-5.0%.

• Guidance for sustainable long-term return on average capital is around 18%, with upside if market conditions remain favorable.

• Loan book expected to grow 4.5%-5.0% nominally in 2025, with above-industry growth in target segments.

• Efficiency ratio target remains below 42%, with flat cost base expected for 2025.

• Net interest margin forecasted at 4.5%-4.7%, with ECL ratio expected at 1.0%-1.2%.