Q4 2025 Banco de Chile Earnings Call Transcript
Key Points
- Banco De Chile (BCH) achieved the highest net income in the local banking industry for 2025, amounting to CLP1.2 trillion, with a return on average assets of 2.2%, significantly above the industry average.
- The bank maintained a strong capital position with a CET 1 ratio of 14.5%, demonstrating robust capital management and regulatory compliance.
- Banco De Chile (BCH) delivered a 3.5% real contraction in operating expenses, reflecting successful efficiency efforts and digital strategy implementation.
- The bank launched Banchile Pagos, a new acquiring and payment processing subsidiary, enhancing its position in digital payments and reinforcing its ecosystem.
- Banco De Chile (BCH) continues to lead in customer experience, ranking first in service quality and top of mind awareness, and has received multiple awards for customer satisfaction and corporate governance.
- Loan growth was subdued in 2025, with total loans contracting 2.6% in real terms since December 2019, particularly in consumer and commercial lending.
- The bank's commercial loans fell by 3%, reflecting a slower recovery in private investment and conservative behavior among large corporates.
- Noncustomer income declined due to lower contributions from inflation-indexed net asset positions and a flat yield curve environment.
- The cost of risk is expected to increase to 1.1% to 1.2% in 2026, higher than the previous year, driven by changes in loan mix and increased lending activity.
- Despite strong performance, Banco De Chile (BCH) faces potential risks from geopolitical tensions and changes in the global economic environment, which could impact future growth.
(technical difficulty) Rodrigo Aravena. Please go ahead.
Good afternoon. Thank you for joining our conference call. Today, we will present Banco de Chile results for the fourth quarter and the full year 2025. We are very proud of the bank's performance this year. Once again, Banco de Chile delivered market leadership and superior financial outcomes, reinforcing the strength and consistency of our business model.
Starting with our financial results. Banco de Chile ranked number one in net income and return on average assets, number one in net fee income and number one in net interest margin among peer banks. This result reflects the resilience of our core revenues, solid customer activity and disciplined balance sheet management.
For the full year, we generated the highest net income in the local banking industry amounting to CLP1.2 trillion, which translated into a 2.2% return on average assets, significantly above the 1.3% achieved by the industry. We also
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