A better bank than the market thinks; initiate with Buy

Research evidence excerpt

A better bank than the market thinks; initiate with Buy

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Itau Chile

A better bank than the market thinks;

initiate with Buy

Initiating Coverage: BUY | PO: 26,812.00 CLP | Price: 20,199.00 CLP

Investors overlooking a more compelling story 09 July 2026

Itaú Chile (ITAUCL) part of Itaú Unibanco, Brazil’s largest private bank, is evolving to a Equity

more compelling story, a franchise becoming structurally more profitable. Through

portfolio optimization (including the divestiture of Colombia’s retail business), digital- ErnestoResearch GabilondoAnalyst >>

driven funding improvements, cost discipline, and stronger client monetization, Itaú Chile Merrill Lynch (Mexico)

is on track for sustainably higher returns. We initiate coverage with a Buy rating and a +52ernesto.gabilondo@bofa.com55 5201 3428

ChP$26,812 price target based on a GGM, implying ~40% total return potential. Mario Pierry

Research Analyst

The re-rating story is bigger than the earnings upside BofAS+1 646 743 0047

As profitability improves and returns approach management’s targets, Itaú Chile has the mario.pierry@bofa.com

potential to narrow its valuation discount relative to higher-quality regional peers. We Augusto Uehara >>

believe multiple expansion could become as important as earnings growth in driving Merrill Lynch (Brazil)

shareholder returns. Our estimates imply annual EPS growth of 20% during 2026-2028, +55 11 2188 4651

augusto.uehara@bofa.com

which should drive ROATE to 15.0% by 2028 from 10.4% in 2025.

Antonio Ruette >>

Merrill Lynch (Brazil)A cleaner, higher-quality franchise +55 11 2188 4225

Investors largely see the divestiture of the Colombian retail business as a balance-sheet antonio.ruette@bofa.com

cleanup. We view it as a profitability inflection point.