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Banco De ChileFRA:G4RA -2.27%70 Return-on-Tangible-Equity is 18.41% as of Mar. 2026, which is 0% above its 10-year median of 18.32. GuruFocus rates FRA:G4RA with a GF Score™ of 70/100 and a GF Value™ of €21.28 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,525 Banks companies, Banco De Chile ranks better than 89.57% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Banco De Chile's annualized net income for the quarter that ended in Mar. 2026 was €1,018 Mil. Banco De Chile's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,533 Mil. Therefore, Banco De Chile's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.41%.
The historical rank and industry rank for Banco De Chile's Return-on-Tangible-Equity or its related term are showing as below:
FRA:G4RA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.41 Med: 18.32 Max: 28.9
Current: 20.15
During the past 13 years, Banco De Chile's highest Return-on-Tangible-Equity was 28.90%. The lowest was 10.41%. And the median was 18.32%.
FRA:G4RA's Return-on-Tangible-Equity is ranked better than 89.57% of 1525
companies
in the Banks industry
Industry Median: 11.25
vs FRA:G4RA: 20.15
Banco De Chile (FRA:G4RA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Banco De Chile Return-on-Tangible-Equity Related Terms
Banco De Chile Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Banco De Chile's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:G4RA vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Banco De Chile's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Banco De Chile Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Banco De Chile's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Banco De Chile's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.41% mean?
Banco De Chile (FRA:G4RA) has a Return-on-Tangible-Equity of 18.41% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Banco De Chile and its competitors. This is near median its historical median of 18.32. Over the past decade, Banco De Chile's Return-on-Tangible-Equity has ranged from 10.41 to 28.90. According to the industry distribution chart, Banco De Chile ranks #159 out of 1525 companies in the Banks industry, placing it in the top 10.4%.
Is Banco De Chile's Return-on-Tangible-Equity too high?
Banco De Chile's current Return-on-Tangible-Equity of 18.41% is near median its 10-year median of 18.32. Over the past 10 years, this metric has ranged from a low of 10.41 to a high of 28.90. The Banks industry median Return-on-Tangible-Equity is 11.25. Banco De Chile's value of 18.41% is 63.6% above this industry median. Based on the distribution chart, Banco De Chile ranks #159 out of 1525 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Banco De Chile has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco De Chile's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Banco De Chile ranks #159 out of 1525 companies for Return-on-Tangible-Equity. This places Banco De Chile in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.25. Banco De Chile's value of 18.41% is 63.6% above this benchmark. Historically, Banco De Chile's own Return-on-Tangible-Equity has ranged from 10.41 to 28.90 over the past decade. While the company's 10-year median is 18.32 vs. the industry median of 11.25, Banco De Chile has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.25, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Banco De Chile's current Return-on-Tangible-Equity of 18.41% is 63.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Banco De Chile and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco De Chile's current Return-on-Tangible-Equity is 18.41%, which is near median its own 10-year median of 18.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco De Chile stock overvalued right now?
Based on GuruFocus' analysis, Banco De Chile (FRA:G4RA) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.28, compared to a current price of €34.40 — trading 61.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.41%, which is near median its 10-year median of 18.32 and 63.6% above the Banks industry median of 11.25. Banco De Chile's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Banco De Chile (FRA:G4RA), the current Return-on-Tangible-Equity is 18.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Banco De Chile (FRA:G4RA) Overvalued in 2026?
Based on GuruFocus' analysis, Banco De Chile stock appears to be overvalued.
The current stock price of €34.40 is trading 61.7% above its estimated GF Value™ of €21.28.
GuruFocus considers Banco De Chile to be Significantly Overvalued.
Key valuation signals for FRA:G4RA:
Return-on-Tangible-Equity: 18.41% (near median its 10-year median of 18.32)
GF Value™: €21.28 vs. price of €34.40 (61.7% above fair value)
Industry Position: 63.6% above the Banks median (#159 of 1525)
No single metric tells the full story. See the FRA:G4RA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Operating under three separate brand names (Banco de Chile, Banco Edwards-Citi, and Banco CrediChile), Banco de Chile is the second largest in the country by loans and third largest by deposits. Banco de Chile generates most of its net interest income (roughly 60% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans, with 25% of its outstanding loans being made to firms with more than 10,000 million CLP in revenue. Outside of its banking business, Banco de Chile is the largest asset manager in the country and one of the largest security brokerages, supporting its substantial fee-based revenue.
70GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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