Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP1,172 billion for Q1 2024, reflecting a 12% year-on-year growth, with a return on equity (ROE) of 14.5% [18] - Operating income increased by 15%, while expected credit losses decreased by 8%, although operating expenses rose by 18% [18] - The industry’s non-performing loans (NPLs) rose to 2.4%, up from 1.9% a year ago, indicating increasing credit risk [18] Business Line Data and Key Metrics Changes - Total loan volumes grew by 4.1% year-on-year, with mortgage loans increasing by 6.9%, while consumer loans expanded by only 2.5% [16] - Commercial loans saw a nominal growth of 3.2% year-on-year, reflecting subdued investment activity [16] - The bank's digital loan applications have significantly increased, with 84% of consumer loans now being processed online, up from 66% a year ago [53] Market Data and Key Metrics Changes - The Chilean economy grew by 2.5% year-on-year in Q1 2024, marking the highest expansion since 2022 [8] - The Central Bank raised its GDP growth forecast for 2024 from 1.75% to 2.5%, indicating a more optimistic economic outlook [9] - Inflation decreased to 3.9% in 2023, but a rise to 1.6% was recorded in Q1 2024, suggesting volatility in price levels [10] Company Strategy and Development Direction - Banco de Chile focuses on customer centricity, productivity, and sustainability, aiming to lead in commercial and consumer loans as well as demand deposits [20] - The bank is enhancing its digital banking capabilities, launching new products like digital savings accounts and improving customer experience through technology [22] - The bank aims to maintain a high efficiency ratio, targeting levels close to 40% in the long term [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to navigate the current economic environment, emphasizing the importance of credit risk management [18] - The bank anticipates a gradual improvement in the economy and job market, which should positively impact credit quality [38] - The expected credit losses for Q1 2024 were CLP113 billion, reflecting a stable cost of risk at 1.2% [37] Other Important Information - The bank's Basel III capital ratio stood at 16.9%, well above the regulatory requirement, indicating strong capitalization [36] - The liquidity coverage ratio reached 237%, significantly exceeding regulatory limits, showcasing robust liquidity management [35] - The bank's commitment to ESG initiatives includes measuring the carbon footprint of its loan portfolio and engaging in community support activities [24] Q&A Session Summary Question: Reserve coverage ratio and loan growth expectations - Management indicated that the reserve coverage ratio is expected to normalize to pre-pandemic levels around 2x, with current provisions being higher due to economic conditions [46] Question: Market-related revenue volatility - Management clarified that while FCIC payments will impact revenues, this will be offset by lower funding costs and improved net interest margins [48] Question: Digital loan growth with FAN accounts - The bank reported that 84% of consumer loans are now originated online, reflecting a significant shift towards digital channels [53] Question: ROE guidance and inflation impact - Management expects ROE to trend down in the second half of the year due to reduced liquidity and net interest income from FCIC payments [57] Question: Capital ratio and dividend payout - Management expressed comfort with current capital levels and indicated a return to normal payout ratios in the near term [60] Question: Impact of FCIC payments on ROE - Management acknowledged that FCIC payments will have a negative impact on ROE, but this is already factored into their guidance [64] Question: Fee structure adjustments due to regulatory changes - Management is analyzing potential adjustments to loyalty programs and fee structures in response to regulatory changes affecting interchange fees [69] Question: Banco de Chile's digital initiatives compared to peers - Management highlighted the bank's proactive approach in digital banking, launching new products and enhancing customer experience through technology [72]

Exhibit 99.1 Banco de Chile El banco de Banco de Chile and Subsidiaries x KKKK n EX EXPK x EXI x EK K Interim Consolidated Financial Statements 蓝 March 31, 2024 and 2023 as For the perio d December 31, 2023 BANCO DE CHILE AND SUBSIDIARIES (Free translation of Consolidated Financial Statements originally issued in Spanish) INDEX | --- | --- | --- | |----------------|------------------|----------------------------------------------------------------------------------------------------------------------------- ...

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2024 Commission File Number 001-15266 BANK OF CHILE (Translation of registrant's name into English) Ahumada 251 Santiago, Chile (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐ BANCO ...

Part I [Key Information](index=9&type=section&id=Item%203%20Key%20Information) The bank faces operational, country-specific, and security-related risks associated with its business and ADSs [Risks Relating to our Operations and the Chilean Banking Industry](index=10&type=section&id=Risks%20Relating%20to%20our%20Operations%20and%20the%20Chilean%20Banking%20Industry) Operational risks include loan portfolio quality, regulatory changes, market competition, and rising fraud losses - The bank's loan portfolio growth slowed to **2.5% in 2023**, driven by residential mortgage and consumer loans[19](index=19&type=chunk)[21](index=21&type=chunk) - The bank is subject to new Basel III capital requirements, including a **1.25% systemic buffer** and a **0.5% countercyclical buffer**[24](index=24&type=chunk)[26](index=26&type=chunk) - As of December 31, 2023, the bank's **Liquidity Coverage Ratio (LCR) was 289%** and its **Net Stable Funding Ratio (NSFR) was 127%**, both in full compliance[27](index=27&type=chunk) - Net operational write-offs due to external fraud increased significantly to **Ch$18,050 million in 2023**, largely due to new liability laws[30](index=30&type=chunk) - New interchange fee limits are expected to reduce fiscal year 2024 gross revenues by approximately **Ch$22,500 million**[34](index=34&type=chunk) [Risks Relating to Chile](index=27&type=section&id=Risks%20Relating%20to%20Chile) The bank's performance is exposed to Chile's economic slowdown, political uncertainty, and currency fluctuations Chilean Economic Indicators (2022 vs. 2023) | Indicator | 2022 | 2023 | | :--- | :--- | :--- | | GDP Growth | 2.4% | 0.2% | | Household Consumption Growth | 2.9% | -5.2% | | Private Investment Growth | 2.8% | -1.1% | | Average Unemployment Rate | 7.9% | 8.7% | | Inflation (CPI Variation) | 12.8% | 3.9% | - In October 2023, S&P maintained Chile's sovereign credit rating at 'A' but revised the outlook from stable to **negative**[72](index=72&type=chunk) - The Chilean government is discussing a new tax reform proposal, the **"Tax Deal for Development,"** creating uncertainty for the bank[74](index=74&type=chunk) - The value of the U.S. dollar relative to the Chilean peso increased by approximately **2.9%** during 2023, affecting ADS values[79](index=79&type=chunk) [Risks Relating to our American Depositary Shares (ADSs)](index=37&type=section&id=Risks%20Relating%20to%20our%20American%20Depositary%20Shares%20(ADSs)) ADS holders face risks from concentrated ownership, limited market liquidity, and constraints on exercising rights - As of April 19, 2024, principal shareholder LQ Inversiones Financieras S.A. (LQIF) holds approximately **51.15% of the voting rights**[93](index=93&type=chunk) - The Chilean market for the bank's shares is described as **small and somewhat illiquid**, which may impair the ability of ADS holders to sell shares[94](index=94&type=chunk) - ADS holders face **practical limitations in exercising voting and preemptive rights** due to procedural and registration requirements[95](index=95&type=chunk) [Information on the Company](index=40&type=section&id=Item%204%20Information%20on%20the%20Company) The company's history, business segments, strategy, regulatory landscape, and key financial statistics are detailed [History and Development of the Bank](index=40&type=section&id=History%20and%20Development%20of%20the%20Bank) The bank's evolution since 1893 is marked by key mergers, debt repayment, and a recent focus on digital transformation - In 2023, Banco de Chile maintained its leadership with a **27.7% market share in net income** and a **ROAE of 26.3%** (under Chilean GAAP)[109](index=109&type=chunk) - The bank **fully paid off its subordinated debt** to the Central Bank on April 30, 2019, a legacy of the 1982-1983 economic crisis[110](index=110&type=chunk) Capital Expenditures (in millions of Ch$) | Category | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | Computer equipment | 22,367 | 9,823 | 11,136 | | Furniture, machinery & installations | 2,349 | 2,090 | 2,922 | | Real estate | 9,477 | 6,041 | 10,277 | | Software | 30,222 | 56,891 | 59,955 | | **Total** | **64,415** | **75,597** | **84,706** | - The capital expenditure budget for 2024 is approximately **Ch$94,850 million**, with **81.5% allocated to information technology** investments[120](index=120&type=chunk) [Business Overview](index=47&type=section&id=Business%20Overview) The bank's strategy focuses on customer-centricity across its retail, wholesale, treasury, and subsidiary segments Market Position as of December 31, 2023 | Product/Service | Market Share | Market Position | | :--- | :--- | :--- | | Commercial Loans | 16.2% | 2nd | | Current Accounts Balances (Individuals) | 24.4% | 1st | | Mutual Funds (Assets Under Management) | 21.9% | 1st | | Net Fees and Commissions Income | 20.1% | 1st | - The bank's digital FAN Account reached **1.4 million customers** by the end of 2023, promoting financial inclusion[132](index=132&type=chunk)[149](index=149&type=chunk) - The bank maintains a prudent risk profile, with a delinquency ratio (90+ days past due) of **1.43%** as of Dec 31, 2023, below the industry average[136](index=136&type=chunk) Loan Portfolio by Business Segment (Dec 31, 2023) | Segment | Loan Amount (millions of Ch$) | % of Total Loans | | :--- | :--- | :--- | | Retail banking | 24,132,997 | 64.2% | | Wholesale banking | 13,457,648 | 35.8% | | **Total** | **37,600,703** | **100.0%** | [Regulation and Supervision](index=91&type=section&id=Regulation%20and%20Supervision) The bank operates under strict regulations from the CMF and Central Bank, including Basel III and new Fintech laws - The CMF is the primary supervisor of the Chilean banking industry, responsible for authorizing, enforcing, and sanctioning[274](index=274&type=chunk)[276](index=276&type=chunk) - Under Basel III, the bank must meet minimum capital ratios such as **CET1 ≥ 4.5%**, plus additional conservation and systemic buffers[293](index=293&type=chunk)[295](index=295&type=chunk) - Regulatory liquidity requirements include a **Liquidity Coverage Ratio (LCR) limit of 100%** and a **Net Stable Funding Ratio (NSFR) limit phasing to 100%**[310](index=310&type=chunk) - A new methodology for calculating expected credit losses on consumer loans is expected to have an adverse impact of **Ch$60,000-Ch$65,000 million**[341](index=341&type=chunk) [Selected Statistical Information](index=118&type=section&id=Selected%20Statistical%20Information) Key financial statistics show a lower net interest margin, loan portfolio growth, and evolving asset quality ratios Net Interest Margin Analysis | Metric | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | Average interest earning assets (Ch$M) | 42,666,108 | 46,245,217 | 48,911,534 | | Net interest earned (Ch$M) | 1,618,943 | 2,498,299 | 2,233,180 | | **Net interest margin** | **3.79%** | **5.40%** | **4.57%** | Loan Portfolio Composition (as of Dec 31) | Loan Type | 2022 (Ch$M) | 2023 (Ch$M) | | :--- | :--- | :--- | | Commercial loans | 20,308,745 | 20,030,044 | | Mortgage loans | 11,422,322 | 12,310,768 | | Consumer loans | 4,995,230 | 5,310,462 | | **Total loans** | **36,726,297** | **37,651,274** | Asset Quality Ratios (as of Dec 31) | Ratio | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | Past-due loans (90+ days) / Total loans | 0.90% | 1.17% | 1.57% | | Allowances for loan losses / Total loans | 1.97% | 2.24% | 1.89% | [Operating and Financial Review and Prospects](index=150&type=section&id=Item%205%20Operating%20and%20Financial%20Review%20and%20Prospects) The bank's 2023 financial performance saw lower net income due to reduced inflation, offset by lower credit losses [Operating Results](index=150&type=section&id=Operating%20Results) Net income decreased 5.0% in 2023, as lower net interest income was partially offset by reduced credit loss provisions Consolidated Net Income Components (in millions of Ch$) | Component | 2022 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Net interest and UF indexation income | 2,266,129 | 1,920,792 | (15.2)% | | Net fees and commissions income | 522,132 | 534,032 | 2.3% | | Other income (loss), net | 354,362 | 561,764 | 58.4% | | Expected credit losses | (412,130) | (201,944) | (51.0)% | | Operating expenses | (995,483) | (1,118,503) | 12.4% | | **Income before income taxes** | **1,735,010** | **1,696,141** | **(2.2)%** | | **Net income** | **1,445,801** | **1,374,027** | **(5.0)%** | - The decrease in net interest income was primarily driven by **lower inflation**, which reduced income from the bank's net asset position in UF[509](index=509&type=chunk) - Provisions for expected credit losses **decreased significantly** due to a better economic outlook for 2024[509](index=509&type=chunk) Income Before Tax by Business Segment (in millions of Ch$) | Segment | 2022 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Retail banking | 766,304 | 634,301 | (17.2)% | | Wholesale banking | 717,197 | 746,013 | 4.0% | | Treasury and Money Market | 97,342 | 40,131 | (58.8)% | | Subsidiaries | 104,349 | 97,077 | (7.0)% | [Liquidity and Capital Resources](index=187&type=section&id=Liquidity%20and%20Capital%20Resources) The bank maintains a strong liquidity and capital position, with key ratios well above regulatory minimums Key Ratios as of December 31, 2023 | Ratio | Actual | Phase-In Regulatory Limit | | :--- | :--- | :--- | | Leverage Ratio | 9.04% | 3.0% | | Common Equity Tier 1 (CET1) Ratio | 13.73% | 7.0% | | Tier 1 Ratio | 13.73% | 8.5% | | Total Capital Ratio | 17.45% | 10.5% | - As of December 31, 2023, the bank's **LCR was 289%** and **NSFR was 127%**, demonstrating strong liquidity positions[594](index=594&type=chunk) Consolidated Cash Flows (in millions of Ch$) | Activity | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 3,005,641 | 128,612 | 1,725,787 | | Net cash used in investing activities | (2,987,305) | (847,815) | (346,500) | | Net cash from (used in) financing activities | 1,376,413 | (161,803) | (1,556,020) | [Directors, Senior Management and Employees](index=203&type=section&id=Item%206%20Directors%2C%20Senior%20Management%20and%20Employees) The bank's governance is led by an 11-member board, with a total employee count of 12,217 at year-end 2023 - The Board of Directors consists of **11 directors** and two alternate directors, elected every three years for terms expiring in March 2026[644](index=644&type=chunk) Board of Directors Compensation (Year Ended Dec 31, 2023) | Category | Amount (millions of Ch$) | | :--- | :--- | | Remuneration | 1,519 | | Fees for Attending Meetings | 371 | | Fees for Board/Committee of Subsidiaries | 1,457 | | **Total** | **3,347** | - The bank has numerous board and management committees to ensure robust governance, including a **Directors/Audit Committee** and a **Sustainability Committee**[662](index=662&type=chunk)[664](index=664&type=chunk)[667](index=667&type=chunk)[682](index=682&type=chunk) Employee Headcount (Consolidated) | Year | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | Total Employees | 12,284 | 12,550 | 12,217 | [Major Shareholders and Related Party Transactions](index=221&type=section&id=Item%207%20Major%20Shareholders%20and%20Related%20Party%20Transactions) LQ Inversiones Financieras S.A. is the controlling shareholder, and the bank engages in regulated transactions with related parties - As of March 31, 2024, LQ Inversiones Financieras S.A. (LQIF) and its subsidiary collectively own **51.15% of Banco de Chile's shares**[700](index=700&type=chunk)[702](index=702&type=chunk) - The bank has several key agreements with Citigroup Inc, which frame their strategic partnership and were extended to **January 1, 2026**[708](index=708&type=chunk)[710](index=710&type=chunk) - As of December 31, 2023, the bank held an aggregate of **Ch$301,733 million in loans to related parties**, made in the ordinary course of business[711](index=711&type=chunk) [Financial Information](index=227&type=section&id=Item%208%20Financial%20Information) This section covers legal proceedings, dividend policy, and consolidated financial statements - The bank is involved in a consumer protection lawsuit filed by SERNAC with a potential financial impact that is **currently not estimable**[714](index=714&type=chunk) - A long-standing investigation by Spanish judicial authorities concerning alleged money laundering was **definitively dismissed in 2022**[715](index=715&type=chunk)[717](index=717&type=chunk) Cash Dividends Declared per Common Share | Year | Dividend Payout Ratio | Dividend per Share (Ch$) | | :--- | :--- | :--- | | 2021 | 47.56% | 2.18 | | 2022 | 68.14% | 5.34 | | 2023 | 69.71% | 8.58 | - In March 2024, shareholders approved a dividend of **Ch$8.077 per share** based on 2023 net income[721](index=721&type=chunk) [Additional Information](index=231&type=section&id=Item%2010%20Additional%20Information) Details on corporate structure, Chilean exchange controls, and taxation for both foreign and U.S. ADS holders are provided - Under Chilean law, shareholders have preemptive rights, but making these rights available to ADS holders is **not guaranteed**[740](index=740&type=chunk) - Foreign exchange transactions, including investments in ADSs, must be conducted through Chile's **Formal Exchange Market** and reported to the Central Bank[753](index=753&type=chunk)[755](index=755&type=chunk) - For foreign holders, cash dividends are subject to a **35% Chilean Withholding Tax**, with potential credits available under tax treaties[760](index=760&type=chunk)[762](index=762&type=chunk) - For U.S. Holders, dividends paid on ADSs are expected to be treated as **'qualified dividend income'** subject to preferential tax rates[781](index=781&type=chunk)

Investors are always looking for stocks that are poised to beat at earnings season and Banco de Chile (BCH) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Banco de Chile is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...

Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP1.2 trillion for 2023, achieving a return on equity (ROE) of 25.1%, which is a significant increase compared to its peers, representing 27.2% of the total net income in the industry [4][11] - The bank maintained strong capital adequacy with a Basel ratio of 17.5% and the best asset quality indicators in the industry, with a coverage ratio of 2.7 times [5][27] - Operating revenues increased by 7% in Q4 2023 compared to the same quarter of the previous year, although full-year operating income decreased by 4% year-on-year due to normalization of economic factors [20][32] Business Line Data and Key Metrics Changes - Total loans grew by 2.5% year-on-year, with residential mortgage loans increasing by 7.8% nominally, while consumer loans grew slightly above 7% [21][22] - Commercial loans, however, declined by 1.5% year-on-year, reflecting a challenging environment for the wholesale banking segment [23] - The bank expects total loans to grow between 5% to 6% in nominal terms in 2024, driven by retail segments [23] Market Data and Key Metrics Changes - The Chilean economy showed signs of recovery with a GDP growth of 0.6% year-on-year in Q3 2023, although it is expected to have stagnated in 2023 [6][10] - Inflation decreased significantly from 12.7% in 2022 to 3.9% in 2023, allowing the Central Bank to begin an easing cycle in monetary policy [8][9] - The unemployment rate rose to 8.5% in Q4 2023, indicating a challenging labor market environment [9] Company Strategy and Development Direction - Banco de Chile focuses on three strategic pillars: customer centricity, productivity, and sustainability, which have driven its consistent results [14] - The bank is enhancing its digital banking capabilities and has launched various initiatives to improve customer experience [15] - Sustainability efforts include issuing social bonds and promoting gender equality through financing initiatives [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive view for 2024, expecting the economy to grow by approximately 1.5% and inflation to stabilize around 3% [10][34] - The bank anticipates improved loan growth driven by increased consumer confidence and lower interest rates, although caution remains due to potential economic risks [12][34] - The management highlighted the importance of maintaining a strong capital base to support future growth and navigate regulatory changes [28][29] Other Important Information - Operating expenses increased by 12% year-on-year, primarily due to inflation and IT-related costs, but are expected to normalize in 2024 [32][48] - The bank's cost-to-income ratio was 37% in Q4 2023, with expectations to maintain it below 42% in the medium term [33] Q&A Session Summary Question: Long-term ROE and Capital Levels - Management indicated that the long-term ROE of 18% assumes current capital levels and reflects a baseline scenario of economic growth [38][39] Question: Loan Growth and Consumer Lending Outlook - Management noted that while consumer loans grew, the overall demand remains weak due to high unemployment and low consumer confidence, impacting loan growth guidance [41][42][61] Question: Operating Expenses and Future Projections - Management clarified that the increase in operating expenses was influenced by inflation and one-time costs, with expectations for normalization in 2024 [47][48] Question: Impact of Interchange Cap and AT1 Issuance - Management discussed the potential impact of interchange fee reductions on fee income but noted strong growth in transaction volumes that could offset this [54][55] - Regarding AT1 issuance, management stated that given the strong capital position, there are no immediate plans for issuance [59] Question: Asset Quality Trends - Management highlighted a normalization in asset quality, with a cost of risk around 1% and NPLs at 1.4%, indicating a stable outlook for 2024 [56][57]

EARNINGS PRESENTATION Full Year 2023 & 4Q23 2023: Another Successful Year 2023 Awards Leader in Most Capitalized Best Customer Best Corporate Governance Financial Results Bank1 Service La Voz del Mercado #1 in Net Income CET 1 Ratio: 13.7% #1 in NPS² EY, the Santiago Stock Exchange and #1 in Net Fees #1 in Top of Mind³ the Chilean Ins ...

Banco de Chile (NYSE:BCH) Q3 2023 Earnings Conference Call November 3, 2023 11:30 AM ET Company Participants Rodrigo Aravena - Chief Economist & SVP, Institutional Relations Pablo Mejia - Head, IR Conference Call Participants Daer Labarta - Goldman Sachs Group Daniel Mora - CrediCorp Capital Yuri Fernandes - JPMorgan Chase & Co. Ernesto Gabilondo - Bank of America Merrill Lynch Operator Good afternoon, everyone, and welcome to Banco de Chile's Third Quarter 2023 Results Conference Call. If you need a copy o ...

Exhibit 99.1 nco de Banco de Chile and Subsidiaries Interim Consolidated Financial Statements For the periods ended as of September 30, 2023 and 2022 BANCO DE CHILE AND SUBSIDIARIES (Free translation of Consolidated Financial Statements originally issued in Spanish) INDEX | --- | --- | --- | |-----------------------------------------------|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP352 billion for Q2 2023, achieving a return on equity (ROE) of 28%, maintaining its position as the most profitable bank in Chile [3][4] - The cost of risk was recorded at 0.7%, with non-performing loans (NPLs) at 1.3%, both significantly lower than industry averages [4] - The Common Equity Tier 1 (CET1) ratio stood at 15.5%, indicating strong capitalization in preparation for economic challenges and regulatory requirements [4][47] Business Line Data and Key Metrics Changes - Total loans experienced a 2% annual growth, with mortgage loans increasing by 9% year-on-year, while commercial loans declined by 4% due to weak investment conditions [38][40] - Consumer loans surged by 12%, achieving a market share of approximately 18%, reflecting a strong recovery in this segment [40] - The bank's net interest margin (NIM) reached 4.6%, outperforming competitors, with expectations for a slight decrease to 4.3% for the year [37][63] Market Data and Key Metrics Changes - The Chilean banking industry reported a net income of CLP1.3 trillion for the quarter, with an ROE of 18.4%, reflecting a year-on-year decline due to lower inflation and increased loan loss provisions [15] - The overall loan growth in the banking sector was limited to 4% year-on-year, with mortgage loans being the primary driver of growth [16] - The current account balance showed a surplus of $700 million in Q1 2023, marking the highest figure since 2010, indicating improved macroeconomic stability [8] Company Strategy and Development Direction - Banco de Chile is focusing on digital transformation and ESG initiatives as core strategic priorities, aiming to enhance customer experience and operational efficiency [19][26] - The bank has made significant advancements in its digital banking ecosystem, including the launch of Cuenta FAN, which attracted over 1 million users [20] - Sustainability efforts have been recognized, with the bank achieving the highest ESG rating in the Chilean banking industry and issuing social bonds to support women-owned enterprises [28] Management's Comments on Operating Environment and Future Outlook - The management highlighted a challenging economic environment, with GDP expected to decline by 0.2% for the year, but anticipates gradual recovery in the second half of 2023 [12][14] - Inflation is projected to decrease to 3.8% by the end of 2023, allowing for potential interest rate cuts by the Central Bank [13][11] - The management expressed caution regarding future growth, citing risks related to labor market conditions and political uncertainties [14][56] Other Important Information - The bank's efficiency ratio improved to 35.4%, significantly below the industry average, reflecting successful cost control measures [52] - Expected credit losses for the quarter were CLP67 billion, a 37% reduction year-on-year, indicating improved asset quality [48] - The bank's capital ratios remain robust, with a Basel III ratio of 17.8%, well above regulatory requirements [47] Q&A Session Summary Question: Sensitivity for rates and loan growth expectations - The management indicated that the sensitivity for rates is approximately CLP60 billion for every 100 basis points change, with expectations for loan growth to accelerate as economic conditions improve [51][56] Question: Sustainability of financial results - The management acknowledged that while current financial results are strong, they are influenced by non-long-term market factors, and a normalization of treasury income is expected [60][61] Question: NIM expectations for 2024 - The bank expects NIM to be around 4.2% for 2024, influenced by factors such as inflation and the economic recovery [62][63]