NYSE:BCH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.6%

NYSE:BCH

2.4%

US Banks

2.9%

US Market


1 Year Return

-2.8%

NYSE:BCH

-14.8%

US Banks

0.2%

US Market

BCH outperformed the Banks industry which returned -15.3% over the past year.

BCH underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

BCHIndustryMarket
7 Day0.6%2.4%2.9%
30 Day-0.3%-6.3%-2.3%
90 Day2.5%-2.1%3.1%
1 Year-0.3%-2.8%-12.4%-14.8%2.4%0.2%
3 Year47.1%35.8%41.7%32.0%41.7%32.4%
5 Year52.8%30.4%52.2%35.7%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

18.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Banco de Chile's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Banco de Chile's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Banco de Chile is overvalued based on earnings compared to the US Banks industry average.

Banco de Chile is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Banco de Chile is poor value based on expected growth next year.


Price Based on Value of Assets

Banco de Chile is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Banco de Chile expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Banco de Chile's revenue is expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Banco de Chile's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

Banco de Chile's revenue growth is expected to exceed the United States of America market average.

Banco de Chile's earnings growth is positive but not above the United States of America market average.

Banco de Chile's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Banco de Chile is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

0.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Banco de Chile's year on year earnings growth rate has been positive over the past 5 years.

Banco de Chile's 1-year earnings growth exceeds its 5-year average (0.3% vs 0.1%)

Banco de Chile's earnings growth has not exceeded the US Banks industry average in the past year (0.3% vs 33.2%).


Return on Equity

Banco de Chile has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Banco de Chile used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Banco de Chile improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Banco de Chile has an acceptable proportion of non-loan assets held.

Banco de Chile has a low allowance for bad loans.

Banco de Chile's liabilities are made up of primarily low risk sources of funding.

Banco de Chile's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Banco de Chile has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).

Banco de Chile has a high level of bad loans (greater than 2%).


Next Steps

Dividend

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

3.75%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Banco de Chile's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Banco de Chile's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Banco de Chile's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Eduardo Ebensperger Orrego (54yo)

3.3yrs

Tenure

0

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 ...


Management Age and Tenure

5.1yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Banco de Chile management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

57yo

Average Age

The tenure for the Banco de Chile board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Nelson Rojas Preter (65yo)

    General Legal Counsel & Secretary of Board of Directors

    • Tenure: 15.6yrs
  • Pablo Granifo Lavín (60yo)

    Chairman & President

    • Tenure: 12.4yrs
    • Compensation: CL$999.00m
  • Eduardo Ebensperger Orrego (54yo)

    Chief Executive Officer

    • Tenure: 3.3yrs
  • Andrés Fernando Ergas Heymann (53yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CL$156.00m
  • Pablo Mejia Ricci

    Head of Investor Relations

    • Tenure: 9.6yrs
  • Felipe Echaiz Bornemann (52yo)

    Manager of Global Compliance Division

    • Tenure: 11.6yrs
  • Héctor Hernández González

    General Manager of Accounting

    • Tenure: 0.0yrs
  • Esteban Kemp De La Hoz (40yo)

    Operations & Technology Division Manager

    • Tenure: 1.0yrs
  • Rolando Arias Sánchez (54yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
  • Juan Carlos Álvarez Mateos (39yo)

    Manager of Marketing & Customer Division

    • Tenure: 1.7yrs

Board Members

  • José Francisco Pérez Mackenna (61yo)

    Director

    • Tenure: 18.4yrs
    • Compensation: CL$137.00m
  • Pablo Granifo Lavín (60yo)

    Chairman & President

    • Tenure: 12.4yrs
    • Compensation: CL$999.00m
  • Andrónico Mariano Luksic Craig (65yo)

    Vice Chairman of the Board

    • Tenure: 17.4yrs
    • Compensation: CL$186.00m
  • Jean-Paul Luksic Fontbona (54yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: CL$70.00m
  • Hernán Büchi Buc (70yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: CL$40.00m
  • Andrés Fernando Ergas Heymann (53yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CL$156.00m
  • Jaime Estévez Valencia (73yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: CL$222.00m
  • Samuel Libnic (53yo)

    • Tenure: 4.3yrs
  • Alfredo Cutiel Ergas Segal (53yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CL$157.00m
  • Alvaro Jaramillo Escallon (54yo)

    Vice Chairman of the Board

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: Banco de Chile
  • Ticker: BCH
  • Exchange: NYSE
  • Founded: 1855
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CL$10.453t
  • Listing Market Cap: CL$14.723b
  • 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
BCH NBMV (Bolsa Mexicana de Valores)SPON ADR REP 600 ORD NPVMXMXNJan 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:32
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.