Banco de Chile Misses Earnings Again, Stock Holds Steady

On February 3, 2026, Banco de Chile (BCH) reported its fourth-quarter earnings, with the stock experiencing a 0.11% increase within 24 hours, though it had declined 2.49% over the past week. Over the last month, the stock rose 6.46%, while dropping 9.87% over the year. The company reported an EPS of $0.58, missing estimates by 3.0%, and noted a $49 million revenue increase compared to the same period last year.

The earnings results contrasted with expectations set ahead of the report, where analysts projected an EPS of $0.60 on revenue of $811.86 million. This aligns with the company’s previous performance trends, where the third quarter of 2025 saw a $0.02 EPS miss, followed by no share price movement the next day. In the fourth quarter of 2024, the company similarly fell short of estimates, reporting an EPS of $0.59 versus $0.62 expected.

BCH’s performance in 2025 reflected broader challenges, with net income declining 1.3% to Ch$1.192 trillion. This decline was attributed to lower non-customer income and higher retail credit losses, partially offset by robust fee growth and controlled costs. Despite these challenges, the company maintained strong capital and liquidity ratios, indicating resilience in its financial position.

Analysts issued mixed signals following the earnings release. Goldman Sachs downgraded the stock to "sell" and cut the price target to $36.00, while JPMorgan increased its price target to $36.00 and maintained a "neutral" rating. Weiss Ratings reiterated a "hold (c)" recommendation, suggesting caution among investors.

Institutional investors also showed varied activity in the third quarter of 2025. Truxt Investmentos Ltda. added to its position with 69,761 shares valued at $2.1 million, making up 3.2% of its portfolio. Vanguard Personalized Indexing Management LLC increased its stake by 28.8%, reflecting confidence in the company’s long-term prospects. However, the overall institutional ownership remains at 1.24%, indicating limited major investor activity.

Banco de Chile’s historical advantage in attracting non-interest-bearing deposits has allowed it to maintain a lower cost of funds compared to its peers. This strength has historically translated into strong returns on equity in the mid-to-high teens, making it a key differentiator in the competitive Chilean banking sector.

As the company moves into 2026, it anticipates loan growth above the industry average, supported by its strong capital base and strategic management of credit risk. Institutional investors and analysts remain divided on the stock’s near-term trajectory, with some expressing optimism about its long-term potential while others remain cautious given recent earnings performance.