SNSE:CHILE

Stock Analysis Report

Executive Summary

Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile.


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Banco de Chile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHILE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

CHILE

-3.9%

CL Banks

-2.6%

CL Market


1 Year Return

-26.6%

CHILE

-25.9%

CL Banks

-20.0%

CL Market

Return vs Industry: CHILE matched the CL Banks industry which returned -25.9% over the past year.

Return vs Market: CHILE underperformed the CL Market which returned -19.9% over the past year.


Shareholder returns

CHILEIndustryMarket
7 Day-4.5%-3.9%-2.6%
30 Day-1.9%-3.7%-2.8%
90 Day-10.4%-10.0%-4.2%
1 Year-24.1%-26.6%-23.7%-25.9%-17.3%-20.0%
3 Year15.6%4.5%22.1%10.6%5.4%-3.8%
5 Year42.5%17.3%60.9%31.1%18.9%-6.7%

Price Volatility Vs. Market

How volatile is Banco de Chile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco de Chile undervalued compared to its fair value and its price relative to the market?

13.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHILE (CLP77.15) is trading above our estimate of fair value (CLP51.61)

Significantly Below Fair Value: CHILE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CHILE is good value based on its PE Ratio (13.1x) compared to the Banks industry average (13.1x).

PE vs Market: CHILE is poor value based on its PE Ratio (13.1x) compared to the CL market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHILE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CHILE is overvalued based on its PB Ratio (2.2x) compared to the CL Banks industry average (1.4x).


Next Steps

Future Growth

How is Banco de Chile forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHILE's forecast earnings growth (7.5% per year) is above the savings rate (7.5%).

Earnings vs Market: CHILE's earnings (7.5% per year) are forecast to grow slower than the CL market (13.3% per year).

High Growth Earnings: CHILE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHILE's revenue (12.4% per year) is forecast to grow faster than the CL market (5.5% per year).

High Growth Revenue: CHILE's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHILE's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Banco de Chile performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHILE has high quality earnings.

Growing Profit Margin: CHILE's current net profit margins (35.6%) are lower than last year (37.4%).


Past Earnings Growth Analysis

Earnings Trend: CHILE's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: CHILE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHILE had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Banks industry average (6.2%).


Return on Equity

High ROE: CHILE's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banco de Chile's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CHILE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHILE's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: CHILE's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CHILE has a low allowance for bad loans.

Low Risk Liabilities: CHILE's liabilities are made up of primarily low risk sources of funding.

Loan Level: CHILE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CHILE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: CHILE has a high level of bad loans (3.07%)


Next Steps

Dividend

What is Banco de Chile's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHILE's dividend (4.5%) is higher than the bottom 25% of dividend payers in the CL market (2.4%).

High Dividend: CHILE's dividend (4.5%) is low compared to the top 25% of dividend payers in the CL market (5.93%).


Stability and Growth of Payments

Stable Dividend: CHILE's dividends per share have been stable in the past 10 years.

Growing Dividend: CHILE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.1%), CHILE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHILE's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Eduardo Ebensperger Orrego (54yo)

3.8yrs

Tenure

Mr. Eduardo Ebensperger Orrego serves as Chief Executive Officer of Banco de Chile since May 1, 2016 and served as its General Manager of Commercial Division since December 30, 2015. Mr. Ebensperger Orrego ...


Leadership Team

NamePositionTenureCompensationOwnership
Pablo Granifo Lavín
Chairman & President12.9yrsCL$999.00mno data
Eduardo Ebensperger Orrego
Chief Executive Officer3.8yrsno datano data
Rolando Arias Sánchez
Chief Financial Officer5.7yrsno datano data
Esteban Kemp De La Hoz
Operations & Technology Division Manager1.5yrsno datano data
Héctor Hernández González
General Manager of Accounting0yrsno datano data
Pablo Mejia Ricci
Head of Investor Relations10.1yrsno datano data
Felipe Echaiz Bornemann
Manager of Global Compliance Division12.1yrsno datano data
Alfredo Montes
General Counsel & Secretary of the Board of Directors0.2yrsno datano data
Claudia Marcela García
Manager of Marketing & Digital Banking Division0.3yrsno datano data
Cristián Lagos Contardo
Manager of People & Organisation Division7.8yrsno datano data

4.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CHILE's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pablo Granifo Lavín
Chairman & President12.9yrsCL$999.00mno data
Hernán Büchi Buc
Director0.5yrsCL$87.00mno data
José Francisco Pérez Mackenna
Director18.9yrsCL$137.00mno data
Andrónico Mariano Luksic Craig
Vice Chairman of the Board17.9yrsCL$186.00mno data
Jean-Paul Luksic Fontbona
Director6.8yrsCL$70.00mno data
Andrés Fernando Ergas Heymann
Director2.9yrsCL$156.00mno data
Jaime Estévez Valencia
Independent Director12.9yrsCL$222.00mno data
Samuel Libnic
Director4.8yrsno datano data
Alfredo Cutiel Ergas Segal
Independent Director2.9yrsCL$157.00mno data
Alvaro Jaramillo Escallon
Vice Chairman of the Board2.1yrsno datano data

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: CHILE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Banco de Chile's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco de Chile
  • Ticker: CHILE
  • Exchange: SNSE
  • Founded: 1855
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CL$7.793t
  • Shares outstanding: 101.02b
  • Website: https://www.bancochile.com

Number of Employees


Location

  • Banco de Chile
  • Paseo Ahumada 251
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHILESNSE (Santiago Stock Exchange)YesCommon StockCLCLPJan 1998
BCHNYSE (New York Stock Exchange)SPON ADR REP 600 ORD NPVUSUSDJan 2002
G4RADB (Deutsche Boerse AG)SPON ADR REP 600 ORD NPVDEEURJan 2002

Biography

Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. The company operates through four segments: Retail, Wholesale, Treasury and Money Market Operations, and Subsidiaries. It offers deposit products, such as checking accounts, current accounts, demand deposits and accounts, saving accounts, and time deposits; credit and debit cards; installment loans; credit lines; and residential mortgage loans, as well as short and long term financing. The company also provides commercial loans, such as factoring and leasing; trade finance services; liquidity management services, debt instruments, foreign trade, and derivative contracts; capital markets services; and cash management and non-lending services that include payroll, payment, and collection services, as well as treasury, financial advisory, and risk management products. In addition, it offers securities brokerage, mutual funds management, investment banking, insurance brokerage, and securitization services. The company serves individuals; small and medium enterprises; and wholesale customers. As of December 31, 2018, it operated through 390 branches comprising 245 branches under the Banco de Chile brand name, 41 branches under the Banco Edwards Citi brand name, and 104 branches under the Banco CrediChile brand name, as well as 1,485 automatic teller machines. Banco de Chile was founded in 1855 and is headquartered in Santiago, Chile. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 18:07
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.