2Q26 earnings beat but fine-tuned 2026 guidance implies softer loan growth + CoR

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Banco de Chile

2Q26 earnings beat but fined-tuned 2026

guidance implies softer loan growth + CoR

Reiterate Rating: NEUTRAL | PO: 208.00 CLP | Price: 196.80 CLP

NI driven by inflation-linked revenues; ROAE at 27.9%

31 July 2026

Preliminary 2Q26 results were released in early July. Net income of ChP$391bn rose

28% YoY (+45% QoQ), coming in well above our estimate and market consensus. The

earnings beat was driven by strong NII growth, supported by elevated inflation and

greater fee income generation, offsetting higher provisioning charges. ROAE reached

27.9%, up from 19.1% in 1Q26 and 22.2% in 2Q25.

Equity

Fine-tuned 2026 ROAC guidance to 21-22%

Management fine-tuned its guidance for 2026, now expecting ROAC of ~21.0%-22.0 (vs

21.5-22.5% previously and 24.5% at BofAe), implying single-digit earnings growth in

2026. Our earnings estimate is 2% above Visible Alpha consensus. Key changes are: i)

softer loan growth of c.6% (vs. 7% before), ii) a higher cost of risk of 1.2-1.3% (vs. 1.11.2% before), and iii) unchanged NIMs, although iii) improving efficiency ratio to 38%

(vs. 39% before). Our estimates already incorporate a lower effective tax rate of 19.5%

in 2027-2028, anticipating the approval of a lower statutory tax rate. Our 2027-2028

earnings estimates are 9% above Visible Alpha consensus.

Rolling-forward our POs; Maintain our Neutral rating

We are increasing our PO to ChP$208/US$47 (from ChP$191/US$43) primarily to reflect

the roll-forward of our valuation to 2027. At our new PO, Banco de Chile would trade at

14x 2027 P/E and 3.0x P/BV. Banco de Chile offers high profitability, with a 26%

sustainable ROAE after adjusting for excess capital and loan reserves. With the strongest

balance sheet in the sector, we view Banco de Chile as the best-positioned bank to

finance investment opportunities in the country. However, the bank is trading above its

historical P/E and P/BV averages. Also, Banco de Chile modestly fine-tuned downward

the ROAAC guidance, while Santander Chile raised its ROAE guidance. Neutral.

Estimates(Dec) (CLP)

EPS

EPS Change (YoY)

Consensus EPS (Bloomberg)

Consensus EPS (Visible Alpha)

DPS

ADR EPS (US$)

ADR DPS (US$)

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