Financial Data and Key Metrics Changes - Banco de Chile generated the highest net income in the local banking industry, amounting to CLP 1.2 trillion, translating into a 2.2% return on average assets, significantly above the 1.3% achieved by the industry [3][24] - The bank maintained the largest market value among private banks in Chile of almost $20 billion and a CET1 ratio of 14.5%, far above regulatory requirements and peers [3][35] - Operating revenues totaled CLP 3 trillion for the full year, remaining relatively stable compared to 2024, with customer income increasing by 4.2% [26][41] Business Line Data and Key Metrics Changes - Total loans rose 0.8% year-on-year, reaching CLP 39.2 trillion, with residential mortgage loans growing 5.3%, consumer loans increasing 3.9%, while commercial loans fell 3% [28][29] - The retail banking segment represented 67.5% of total loans, growing 4.2% year-on-year, with individuals growing 4.4% and SMEs expanding 3.3% [30] - Non-government guaranteed installment loans for SMEs showed strong momentum, growing 9.4% year-on-year, highlighting healthy underlying demand [21] Market Data and Key Metrics Changes - Chilean economic growth posted above-trend figures, with a 1.6% year-on-year expansion in Q3 and an average expansion of 2.5% year-to-date [6] - Domestic demand increased significantly, expanding 5.8% year-on-year in Q3, driven by a strong recovery in gross investment [6][7] - The 12-month CPI variation ended the year at 3.5%, down from 4.4% in September, indicating a gradual convergence towards the central bank's 3% target [8][9] Company Strategy and Development Direction - Banco de Chile's strategy focuses on placing the customer at the center, operating with efficiency, and maintaining a strong commitment to sustainability [16] - The bank aims to remain top in return on average capital among peers and maintain a cost-to-income ratio below 40% [17] - The launch of Banchile Pagos, a new acquiring and payment processing subsidiary, aims to strengthen the bank's positioning in digital payments [4][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the economy, expecting above-trend GDP growth of around 2.4% in 2026, driven by strong domestic demand [10][45] - The central bank is expected to continue normalizing monetary policy, with further rate cuts anticipated [9][11] - Management highlighted the importance of monitoring the new government's agenda, particularly regarding tax reforms and investment policies [51][52] Other Important Information - Banco de Chile's risk indicators remain strong, with a coverage ratio of 223% and CLP 651 billion in additional provisions [4][40] - The bank's operating expenses decreased by 3.5% in real terms, reflecting a solid cost control culture [41][43] - The bank's CET1 ratio of 14.5% positions it well for future growth and stability [35] Q&A Session Summary Question: Economic and political outlook regarding tax rate and credit card limits - Management noted potential positive changes in tax rates but emphasized the need to wait for the new government's agenda [50][52] Question: Loan growth expectations by segment - Management expects loan growth around 4.5% for the industry, with Banco de Chile targeting slightly above that, particularly in corporate banking and consumer loans [54] Question: Capital allocation and market share - Management indicated a desire to utilize their strong capital position to gain market share in the future, particularly in 2026 [56][57]

Financial Data and Key Metrics Changes - Banco de Chile generated the highest net income in the local banking industry, amounting to CLP 1.2 trillion, translating into a 2.2% return on average assets, significantly above the 1.3% achieved by the industry [3][24] - The bank maintained the largest market value among private banks in Chile of almost $20 billion and led the market in average trade volumes with over $25 million per day [3] - Banco de Chile's CET1 ratio stood at 14.5%, far above regulatory requirements and peers, reflecting its strong capital position [3][35] Business Line Data and Key Metrics Changes - Total loans rose 0.8% year-on-year, reaching CLP 39.2 trillion as of December 2025, with residential mortgage loans growing 5.3%, consumer loans increasing 3.9%, while commercial loans fell 3% [28][30] - Retail banking represented 67.5% of total loans, growing 4.2% year-on-year, with individual loans growing 4.4% primarily driven by mortgage lending [30] - SME loans grew 9.4% year-on-year when excluding the amortization of FOGAPE loans, indicating healthy demand in this segment [30] Market Data and Key Metrics Changes - Chilean economic growth posted above-trend figures, with a 1.6% year-on-year expansion in the third quarter and an average expansion of 2.5% year-to-date [6] - Domestic demand increased significantly, expanding 5.8% year-on-year in the third quarter, driven by a strong recovery in gross investment [6][7] - The 12-month CPI variation ended the year at 3.5%, down from 4.4% in September, indicating a gradual convergence towards the central bank's 3% target [8][9] Company Strategy and Development Direction - Banco de Chile's strategy focuses on placing the customer at the center, operating with efficiency, and maintaining a strong commitment to sustainability [16][17] - The bank aims to remain top in return on average capital among peers and maintain a cost-to-income ratio below 40% [17] - The launch of Banchile Pagos, a new acquiring and payment processing subsidiary, reflects the bank's strategy to deepen digital capabilities and strengthen fee-based income streams [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the economy, expecting above-trend GDP growth of around 2.4% in 2026, driven by strong domestic demand [10][45] - The central bank is expected to reduce the policy rate to the neutral level of 4.25%, supporting the economic recovery [11] - Management highlighted the importance of monitoring the new government's agenda, particularly regarding tax reforms and investment policies [51][52] Other Important Information - Banco de Chile's operating revenues totaled CLP 3 trillion for the full year, remaining stable compared to 2024, with customer income increasing by 4.2% [26] - The bank's efficiency ratio improved to 37.4% for 2025, reflecting a solid cost control culture developed over the last five years [43] - Total provisions reached CLP 1.5 trillion, resulting in a coverage ratio of 223%, providing a robust buffer against potential stress scenarios [40] Q&A Session Summary Question: Economic and political outlook regarding tax rate and credit card limits - Management noted potential positive changes in the corporate tax rate, with expectations of a reduction from 27% to around 23%, which could enhance investment [52] Question: Loan growth expectations by segment - Management expects industry loan growth around 4.5%, with Banco de Chile targeting slightly above that, particularly in corporate banking and consumer loans [54] Question: Capital allocation and market share - Management indicated a desire to utilize capital to gain market share, particularly in 2026, while maintaining capital ratios above regulatory limits [57]