Chilean Banks ""Inflationary" upside ahead? We revise estimates to refle...

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Chilean Banks ""Inflationary" upside ahead? We revise estimates to refle...

Global Research

21 May 2026ab

Chilean Banks Equities

Latin America"Inflationary" upside ahead? We revise

estimates to reflect NII pickup Banks

Olavo Arthuzo

Analyst

olavo.arthuzo@ubs.com

Inflation resurfaces as a tailwind; updating models, maintaining Neutral ratings +55-11-2767 6306

Chile’s inflation has reawakened, with April’s CPI jumping to 4.0% YoY (vs. 2.8% in Andrea Casaverde

March) on a sharp energy shock. This resurgence provides a boost to Chilean banks’ Economist

margins via inflation-indexed assets. With this backdrop of NII acceleration over the andrea.casaverde@ubs.com

coming quarters, we also revisited our models for the Chilean banks and updated +1-203-713-2515

our PTs. Given reverse effect from global-risk perceptions and USD strength YTD, we Thiago Batista, CFA

cut our PTs for Banco de Chile and Santander Chile ADRs (partially offset by that Analyst

positive NII tailwind ahead) to US$39.0 and US$31.0, respectively, while increasing thiago.batista@ubs.com

our Bci PT to CLP 63,000. Valuations imply limited upside to current prices, driving +55-11-3513 6518

us to maintain Neutral in all names. However, at current market multiples and amid Beatriz Shinye

such macro tailwind over banks’ NIMs, we see risks more skewed to upside for Associate Analyst

Chilean banks, especially Banco de Chile given its notable excess capital. beatriz.shinye@ubs.com

+55-11-2767 6569

Bank implications: Santander Chile has the highest exposure to mortgage loans

Chilean banks' profitability is highly influenced by inflation due to the UF

mechanism, as ~30-35% of loans are denominated in UF, primarily mortgages.

Santander Chile stands out with the highest proportion of UF-linked loans (44% of its