Chile & North Andean Research "Weekly Brief: Banks' ROAE vs. P/B; Open F..."

Research evidence excerpt

Chile & North Andean Research "Weekly Brief: Banks' ROAE vs. P/B; Open F..."

Global Research

18 May 2026ab

Chile & North Andean Research Equities

Latin AmericaWeekly Brief: Banks' ROAE vs. P/B; Open

Olavo ArthuzoFinance progress in Chile? Fintech Lemon in

Analyst

olavo.arthuzo@ubs.comColombia; Peru moves on Fintech regulation

+55-11-2767 6306

Andrea Casaverde

Economist

Chart of the week: Who trades at a premium/discount in LatAm banking? andrea.casaverde@ubs.com

After several weeks analyzing the Andean equity market from the perspectives of +1-203-713-2515

liquidity, FX, and earnings momentum, this week we focus on a specific sector that Thiago Batista, CFA

holds significant weight and trading volume in regional portfolios. The 2026E ROAE Analyst

spread vs. P/B scatter across the LatAm banks offers some insights: the market thiago.batista@ubs.com

largely demonstrates efficiency in valuing value creation; however, notable +55-11-3513 6518

deviations from the regression line highlight areas where valuations may be ahead Beatriz Shinye

of or lagging fundamentals. Based on 22 banking stocks across LatAm, names Associate Analyst

positioned near the regression line represent the market's equilibrium, with beatriz.shinye@ubs.com

multiples that possibly reflect their return profiles. Above the regression line, +55-11-2767 6569

where multiples appear elevated relative to the ROAE spread, we highlight Chilean

banks, trading at noticeable premiums, reflecting the structural strengths of the

Chilean banking system that the market has consistently been willing to reward (we

have Neutral on the 3 Chilean banks covered). On the flipside, below the regression

line, where multiples seem subdued compared to the return profile, names emerge

where valuations have lagged behind returns.