Falabella (FALABELLA.SN): The Bank is Doing Heavy Lifting, Non-Banking Tailwinds Ahead

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Falabella (FALABELLA.SN): The Bank is Doing Heavy Lifting, Non-Banking Tailwinds Ahead

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18 Jun 2026 20:02:44 ET │ 23 pages

Falabella (FALABELLA.SN)

The Bank is Doing Heavy Lifting, Non-Banking Tailwinds Ahead

CITI'S TAKE

We are upgrading Falabella to Buy from Neutral and raising our target price

to ChP6,900 (from ChP6,000), reflecting resilient execution that has

surpassed our previous expectations. The banking segment is a key catalyst Buy ↑ from Neutral

for 2026, supported by robust loan growth, structurally higher profitability Price (17 Jun 26 16:00) ChP6,052.00

from a recent accounting change, and a favorable cost of risk outlook.

Currently, the strategic repositioning at Tottus is beginning to deliver Target price ChP6,900.00↑

tangible results, driving strong same-store sales. While we see near-term from ChP6,000.00

margin pressure in the non-banking segment from inflationary pressures, Expected share pricepre-opening store expenses, and highly competitive environment, the 14.0%

company should remain resilient, maintaining a consolidated EBITDA return

margin of ~15%. The stock trades at a 9% discount relative to its 10-year Expected dividend yield 1.5%

average EV/EBITDA 12m fwd. Expected total return 15.5%

Market Cap ChP15,183,528MBanking Outlook 2026 — The banking segment is a key catalyst for 2026,

supported by solid loan growth in 2025 that is expected to continue into 2026, US$17,031M

albeit at a slower pace, structurally higher profitability, and favorable cost of risk

outlook. While normalization in asset quality is anticipated alongside strong

portfolio expansion, CoR should remain at healthier levels relative to historical

averages and consistent with the bank’s expanded portfolio base. Price Performance