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Banco De Chile ADR BCH

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Banco de Chile Reports Solid Q1 Results as the Chilean Economy Is Set for a Strong Economic Recovery

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

Narrow-moat rated Banco de Chile reported solid first-quarter results, comfortably beating the FactSet consensus EPS of CLP 1.42 per share with reported earnings of CLP 1.61 per share. First-quarter net income was CLP 162 billion, up 29% sequentially and up 19% on a year-over-year basis. Coronavirus cases in Chile began to rise during the quarter, and some lockdown restrictions were put into place in March and April. However, with around 40% of the Chilean population fully vaccinated, we are increasingly seeing evidence of a broad-based economic recovery. First-quarter results were driven by recovering fee income, significantly lower credit costs, and controlled expenses. We do not expect to change our fair value estimate of $23.00 per ADR share.

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Company Profile

Business Description

Banco De Chile is one of the largest banks in Chile; it provides banking services to a wide customer base of large corporations, small and medium-size businesses, and individuals. Through its network of roughly 380 branches, the bank offers a diverse set of financial products that includes traditional banking services, investment and mutual funds, insurance, financial advisory, and capital market services.

Contact
Paseo Ahumada 251
Santiago, Chile
T +56 226371111
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 13,134

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