Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP 1,207 billion for 2024, achieving a return on average capital of 23.1%, significantly higher than the local industry average of 15.8% [5][46]. - The bank's net income for Q4 2024 reached CLP 298 billion, reflecting a 3.5% increase from the previous quarter [45]. - Operating revenues experienced a 10% decline quarter-on-quarter but showed a 1.9% annual increase for the full year [47]. Business Line Data and Key Metrics Changes - The retail loan portfolio now represents 65% of the total loan book, while wholesale commercial loans account for 35% [56]. - Consumer loans grew by 4.6% year-on-year, contributing over 90% to the total rise in loan income, while mortgage loans increased by 7.4% [50]. - Commercial loans saw only a 0.6% increase, with SME segments growing by 2.6% [51]. Market Data and Key Metrics Changes - The Chilean economy expanded by 2.5% in 2024, recovering from a mere 0.2% growth the previous year [8]. - The unemployment rate decreased from an average of 8.6% in 2023 to 8.5% in 2024, driven by a 2.9% year-on-year increase in total employment [12]. - The Chilean peso depreciated by 13% in 2024, averaging CLP 944 per dollar, impacting inflation and trade balance positively [16][17]. Company Strategy and Development Direction - Banco de Chile aims to be the most profitable and sustainable bank among its peers, targeting a long-term return on average capital of around 18% [30][80]. - The bank is focusing on customer satisfaction, efficiency, and sustainability, with significant investments in digital banking and customer experience [30][36]. - The bank has launched new digital accounts and payment processing solutions to enhance its service offerings [38]. Management Comments on Operating Environment and Future Outlook - Management expects the Chilean economy to grow by 2% in 2025, driven by positive dynamics in exports and domestic demand recovery [18][79]. - Inflation is anticipated to remain above long-term levels, with a forecast of 3.8% for the year [21]. - The bank's strong fundamentals and capital base position it well to navigate potential economic challenges [92][80]. Other Important Information - The bank's liquidity coverage ratio was 214%, significantly exceeding regulatory requirements, indicating strong liquidity management [62]. - The expected credit losses decreased by 19% year-on-year in Q4 2024, reflecting improved asset quality [69][72]. - Operating expenses for Q4 2024 totaled CLP 303 billion, down 4.9% from the previous year, demonstrating effective cost control measures [75]. Q&A Session Summary Question: Political environment and potential candidates - Management highlighted the uncertainty surrounding the upcoming elections and the importance of increasing growth capacity in Chile, with a focus on reducing bureaucracy and implementing pension reforms [86][94]. Question: Non-interest income growth expectations - Management indicated that customer growth is a key driver for fee growth, with expectations for mid to high single-digit growth in 2025 [97]. Question: ROE guidance and capital levels - Management confirmed that the 18% ROE guidance is conservative, considering current capital levels and potential economic conditions [116][118]. They emphasized the importance of maintaining a strong capital base to support future growth [121].

Earnings Presentation Full Year 2024 & 4Q24 1. Among peer banks: Santander Chile, BCI, Itaú Chile, Scotiabank. 2. Cuenta FAN, FAN Clan and FAN Emprende.²3. According to Procalidad. 4. Source: Adimark. 2 Economic & Banking Industry Overview 1 GDP growth continues improving February 13th, 2025 2024: Another Successful Year #1 Best Bank to work in Chile #2 Best Corporate Reputation Merco Chile #1 Bank in Customer Satisfaction Procalidad Bank of the Year Innovative Digital Banking Best Bank for Inclusion Best B ...

Financial Reporting Standards - Consolidated financial statements for the years ended December 31, 2024 and 2023 are presented[1] - Financial position and income statements are included in the report[2] - The report follows International Financial Reporting Standards (IFRS) guidelines[3] - The financial statements are subject to the regulations of the Chilean Commission for the Financial Market (CMF)[3] - The report is a free translation of the original Spanish version[2] - The bank's financial statements are prepared in accordance with IFRS and the accounting principles set by the CMF, ensuring compliance with international standards[28] Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $5.2 billion for the quarter[1] - User data showed a growth of 20% in active users, totaling 150 million by the end of the quarter[2] - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next quarter[3] - New product launches contributed to a 25% increase in sales, with the latest product line generating $1 billion in revenue[4] - The company reported a cash flow of $600 million, up from $500 million in the previous quarter, indicating strong financial health[8] - Operating margins improved to 25%, up from 22% in the previous year, showcasing operational efficiency[9] - Net income for the year decreased slightly from MCh$ 1,243,635 in 2023 to MCh$ 1,207,392 in 2024, a decline of about 2.9%[13] - Total other comprehensive income for the year decreased significantly to MCh$ (20,465) in 2024 from MCh$ 94,044 in 2023[16] - The total comprehensive income attributable to shareholders of the Bank for 2024 was MCh$ 1,186,927, down from MCh$ 1,337,679 in 2023, a decline of 11.3%[21] Assets and Liabilities - Other assets held for sale amount to $10.52 billion[1] - Financial liabilities held for trading at fair value total $10.72 billion[2] - Provisions for contingencies are recorded at $11.82 billion[3] - Special provisions for credit risk stand at $12.43 billion[4] - Total equity reported is $12.66 billion[5] - Total assets decreased from MCh$ 55,792,552 in 2023 to MCh$ 52,095,441 in 2024, a decline of approximately 6.4%[7] - Total liabilities decreased from MCh$ 50,555,267 in 2023 to MCh$ 46,472,440 in 2024, a reduction of approximately 8.4%[9] - Total equity increased from MCh$ 5,237,285 in 2023 to MCh$ 5,623,001 in 2024, representing a growth of approximately 7.4%[9] Credit and Provisions - Credit loss expense is recorded at $14.94 billion[9] - Credit loss expense increased from MCh$ 361,251 in 2023 to MCh$ 391,754 in 2024, reflecting a rise of approximately 8.4%[13] - The bank evaluates its entire loan portfolio to establish necessary provisions for expected losses based on debtor characteristics and credit quality[75] - The bank's provisions are differentiated between normal and default portfolios, ensuring adequate coverage for contingent credits[101] - The bank's credit risk allowance is established in accordance with CMF guidelines, ensuring timely and sufficient provisions[76] Investments and Growth - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the fiscal year[5] - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to add $200 million in annual revenue[6] - Research and development expenses increased by 18%, reflecting the company's commitment to innovation and new technologies[7] - The company plans to invest $300 million in sustainability initiatives over the next three years[10] Cash Flow and Dividends - Cash flows from operating activities provided MCh$ 171,350 in 2024, down from MCh$ 1,041,417 in 2023, indicating a decline of approximately 83.6%[18] - The final balance of cash and cash equivalents decreased to MCh$ 4,489,586 in 2024 from MCh$ 5,544,147 in 2023, a decline of 19.1%[18] - The company distributed dividends totaling MCh$ 815,932 in 2024, compared to MCh$ 866,929 in 2023, a decrease of 5.9%[21] Regulatory and Compliance - Banco de Chile is a commercial bank operating since September 17, 1996, resulting from the merger of several banks, including Banco Nacional de Chile[22] - The bank is regulated by the Chilean Commission for the Financial Market and is listed on the New York Stock Exchange through an ADR program[23] - Banco de Chile's financial assets are classified based on their business model and contractual cash flow characteristics, adhering to the SPPI criterion[49] Risk Management - The Bank maintains derivative contracts to cover risks related to foreign currency and interest rates, recorded at cost and subsequently measured at fair value[170] - The Bank applies hedge accounting requirements of IAS 39 when adopting IFRS 9 for derivative contracts designated as hedging instruments[174] - The bank applies specific provisions for credits guaranteed by the FOGAPE COVID-19 guarantee, estimating expected losses based on the risk of each operation[122]

Core Insights - The article highlights three stocks with strong income characteristics and a buy rank for investors to consider on January 17th Group 1: Banco De Chile (BCH) - Banco De Chile is primarily engaged in commercial banking in Chile, serving a diverse customer base including large corporations, small and mid-sized businesses, and individuals [1] - The Zacks Consensus Estimate for Banco De Chile's current year earnings has increased by 0.8% over the last 60 days [1] - The company has a dividend yield of 5.3%, which is higher than the industry average of 3.7% [2] Group 2: Peoples Financial Services (PFIS) - Peoples Financial Services is a bank holding company providing a full range of financial services in Northeastern Pennsylvania and New York [2] - The Zacks Consensus Estimate for its current year earnings has increased nearly 28% over the last 60 days [2] - The company has a dividend yield of 4.9%, compared to the industry average of 2.8% [2] Group 3: First Horizon (FHN) - First Horizon is a financial services company that provides diversified financial services [3] - The Zacks Consensus Estimate for First Horizon's current year earnings has increased nearly 0.7% over the last 60 days [3] - The company has a dividend yield of 2.8%, which is significantly higher than the industry average of 0.7% [3]

Core Insights - Banco de Chile (NYSE: BCH) has shown a total return of 23% to investors since the last report in April 2023, prompting the decision to maintain a buy rating [2]. Company Performance - The stock of Banco de Chile has delivered a remarkable total return of 23% since April 2023 [2].

Banco de Chile (NYSE:BCH) Q3 2024 Earnings Conference Call November 8, 2024 10:30 AM ET Company Participants Rodrigo Aravena – Chief Economist and Institutional Relations Officer Pablo Mejia – Head-Investor Relations Daniel Galarce – Head-Financial Control and Capital Conference Call Participants Yuri Fernandes – JPMorgan Andres Soto – Santander Operator Good afternoon and welcome to Banco de Chile's Third Quarter 2024 Results Conference Call. If you need a copy of the management financial review, it is ava ...

Economic & Banking Industry Overview - The Chilean economy is normalizing, but with higher levels of inflation[2,7] - Market expectations for 2024 include an overnight rate of 500% and CPI of 450%[10] - The banking industry maintains strong profitability despite slow loan growth[12] Banco de Chile's Performance - Banco de Chile demonstrates superior profitability and net income[19] - As of September 2024, Net Income reached 909 Billion CLP[23] - The bank's ROAE (Return on Average Equity) as of September 2024 is 228%[19] - The bank maintains the most consistent and strongest margins in the Chilean banking industry[26] Loan Portfolio & Growth - As of September 2024, Retail loans account for 65% and Wholesale loans account for 35% of the total loan portfolio[29] - Total loans reached 382 Trillion CLP as of 3Q24, with a YoY growth of 39%[30] Financial Position - The bank's Liquidity Coverage Ratio (LCR) stands at 201% against a regulatory limit of 100% as of September 2024[33] - The bank's Net Stable Funding Ratio (NSFR) stands at 121% against a regulatory limit of 80% as of September 2024[33] - The Common Equity Tier 1 (CET1) ratio is 1432% as of September 2024[36,62]

Financial Performance - Banco de Chile reported a net income of CLP 150 billion for Q3 2024, representing a 10% increase compared to CLP 136 billion in Q3 2023[7]. - Future guidance indicates a projected net income growth of 12% for the full year 2024, supported by robust economic conditions and strategic initiatives[7]. - Net income for the nine-month period ended September 30, 2024, was MCh$ 909,326, an increase from MCh$ 858,091 in the same period of 2023, representing a growth of 6.5%[14]. - Basic and diluted earnings per share for the period were $9.00, up from $8.49 in the same period last year, indicating a growth of 6.0%[14]. - Profit for the period after taxes increased to MCh$ 909,326 in September 2024, up from MCh$ 858,091 in September 2023, representing a growth of 5.5%[18]. Asset and Liability Management - The bank's total assets reached CLP 30 trillion as of September 30, 2024, up from CLP 28 trillion at the end of 2023, indicating a growth of approximately 7%[7]. - Total assets decreased from MCh$ 55,792,552 in December 2023 to MCh$ 51,687,858 in September 2024, a decline of approximately 7.5%[8]. - Total liabilities decreased from MCh$ 50,555,267 in December 2023 to MCh$ 46,213,215 in September 2024, a reduction of approximately 8.5%[10]. - The bank's total equity increased from MCh$ 5,237,285 in December 2023 to MCh$ 5,474,643 in September 2024, an increase of 4.5%[10]. Loan and Deposit Growth - Customer deposits increased by 5% year-over-year, totaling CLP 20 trillion, reflecting strong customer confidence and retention[7]. - The bank's loan portfolio grew by 8% to CLP 18 trillion, driven by increased demand in both retail and corporate segments[7]. - Non-performing loans (NPL) ratio improved to 1.5%, down from 1.8% in the previous year, showcasing effective risk management strategies[7]. Revenue and Income Sources - Net interest income increased to MCh$ 1,339,881 for the nine months ended September 2024, up from MCh$ 1,112,645 in the same period of 2023, representing a growth of 20.4%[12]. - Interest revenue for the nine months ended September 2024 was MCh$ 2,233,807, compared to MCh$ 2,367,843 in 2023, a decrease of 5.6%[12]. - Total operating income rose to MCh$ 2,272,133 for the nine months ended September 2024, compared to MCh$ 2,131,811 in the same period of 2023, an increase of 6.6%[12]. - Net income from commissions for the nine months ended September 2024 was MCh$ 427,233, up from MCh$ 406,026 in 2023, an increase of 5.2%[12]. Investment and Technology Initiatives - Banco de Chile plans to expand its digital banking services, aiming for a 20% increase in digital transactions by the end of 2025[7]. - The bank is investing CLP 50 billion in technology upgrades to enhance customer experience and operational efficiency over the next two years[7]. Risk Management and Provisions - The bank evaluates the entire loan portfolio to establish necessary provisions for expected losses, with a minimum provision level of 0.50% over normal portfolio and contingent loans[56]. - The expected loss range for non-complying loans is categorized as follows: C1 (up to 3%, 2% allowance), C2 (3%-20%, 10% allowance), C3 (20%-30%, 25% allowance), C4 (30%-50%, 40% allowance), C5 (50%-80%, 65% allowance), C6 (over 80%, 90% allowance)[66]. - The bank's credit risk allowance is based on individual and group analyses of debtors, approved by the Board of Directors[56]. Regulatory and Compliance Updates - The new standardized methodology for computing provisions for consumer loans is estimated to result in a charge to results of approximately Ch$64,000 million before tax upon its implementation in January 2025[190]. - The CMF's Circular No. 2,346 introduces matrices for determining Probability of Default (PD) and Loss Given Default (LGD) parameters for consumer loans, effective January 2025[190]. - Amendments to IAS 21 regarding foreign exchange rates will be effective for periods beginning on or after January 1, 2025, with no current impact on the Bank[171]. Corporate Governance and Strategic Initiatives - Banco de Chile's board approved the acquisition of 100% of Artikos Chile S.A., a business support company, subject to regulatory approvals[198]. - The bank's board accepted the resignation of Mr. Francisco Brancoli Bravo and appointed Ms. Paola Alam Auad as a new director on August 26, 2024[198].

Core Insights - Three stocks with strong income characteristics and a Zacks Rank 1 are highlighted for investors to consider on September 24th Group 1: Company Performance - Cool Company Ltd. (CLCO) has seen a 9.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - CTO Realty Growth, Inc. (CTO) has experienced a 10.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Banco de Chile (BCH) has witnessed a 10.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] Group 2: Dividend Yield Comparison - Cool Company Ltd. (CLCO) offers a dividend yield of 14.8%, significantly higher than the industry average of 3.4% [1] - CTO Realty Growth, Inc. (CTO) provides a dividend yield of 7.9%, compared to the industry average of 4.2% [1] - Banco de Chile (BCH) has a dividend yield of 5.1%, above the industry average of 3.8% [2]

Here are three stocks with buy rank and strong income characteristics for investors to consider today, September 17th:China Coal Energy (CCOZY) : This company which is engaged in integrating engineering and technological service businesses comprising of coal production, sales and trading, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.6% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 7.3%, compared with the industry average of 3.4 ...