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][25] - 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] - The CET1 ratio stood at 14.5%, far above regulatory requirements and peers, indicating a strong capital position [3][36] - Operating revenues totaled CLP 3 trillion for the full year, remaining relatively stable compared to 2024, with customer income increasing by 4.2% [27][28] 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%, and commercial loans declining 3% [29][30] - Retail banking represented 67.5% of total loans, growing 4.2% year-on-year, while SME loans grew 9.4% year-on-year when excluding FOGAPE loans [30][31] - The bank's new acquiring and payment processing subsidiary, Banchile Pagos, was launched to strengthen its position in digital payments [4][19] Market Data and Key Metrics Changes - Chilean economic growth was reported at 1.6% year-on-year in Q3, with domestic demand increasing by 5.8% year-on-year, primarily driven by a strong recovery in gross investment [6][8] - 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 [9][10] - The banking industry showed resilience, with quarterly net income reaching CLP 1.2 trillion and a 16% return on average equity [13] Company Strategy and Development Direction - Banco de Chile's strategy focuses on placing the customer at the center, operating with efficiency, and maintaining a commitment to sustainability [17][18] - The bank aims to remain top in return on average capital among peers and maintain a cost-to-income ratio below 40% [18] - The launch of Banchile Pagos reflects the bank's strategy to deepen digital capabilities and strengthen fee-based income streams [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 [11][46] - The bank anticipates loan growth of around 4.5% for the industry in 2026, with expectations of improved corporate banking performance [15][56] - Management highlighted the importance of the new government's agenda, particularly regarding potential tax reforms and their impact on investment [54][75] 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][41] - The bank's operating expenses decreased by 3.5% in real terms, reflecting a solid cost control culture [42][44] - The bank's commitment to sustainability was reinforced through the issuance of ESG bonds to finance social projects [23] 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 post-March 11 [54][55] Question: Loan growth expectations by segment - Management expects loan growth to be around 4.5% for the industry, with corporate banking showing signs of recovery and Banco de Chile targeting slightly above industry growth [56][57] Question: Capital allocation and dividend payout - Management indicated a focus on using capital to gain market share in the future while maintaining a CET1 ratio above regulatory limits [58][59]