Banco de Chile Q4 FY2025 earnings call

• Strategic priorities include placing customers at the center, operating efficiently, and sustainability.
• Business advances: Launched Banchile Pagos for digital payments, expanded FAN digital accounts to 2.4 million with 25% y-o-y growth, increased consumer and SME loans, invested in AI-based virtual assistance, improved productivity via digital channels, integrated subsidiaries, strengthened talent development, issued ESG bonds, and the 4270 Project.
• Financial results: Net income CLP 1.2 trillion for full year 2025, return on average capital 21.9%, market value ~$20 billion, largest market share in net income.

Banco de Chile's full year 2025 net income was CLP 1.2 trillion, ranking #1 in the local banking industry. Return on average assets was 2.2%, significantly above the industry's 1.3%. Net fee income and net interest margin were also ranked #1 among peer banks. Total loans in December 2025 were CLP 39.2 trillion. Residential Mortgage loans grew 5.3%, Consumer Loans 3.9%, while Commercial Loans fell 3%. Retail Banking represents 67.5% of total loans, growing 4.2% year-on-year.

• Expect Chilean economic growth around 2.4% in 2026, driven by domestic demand.
• Inflation expected to converge to 3% target. Central Bank to reduce policy rate to 4.25%.
• Banco de Chile guidance: Return on average capital 19%-21%, efficiency ratio around 39%, cost of risk 1.1%-1.2%.

• Global environment uncertainties like U.S. and Chinese GDP performance, geopolitical tensions.
• Domestic geopolitical agenda and government transition impacts.
• Peso appreciation affecting inflation and interest rates.

Q: What's the economic and political outlook, loan growth expectations, and capital allocation?

A: Rodrigo and Pablo discussed economic growth, potential tax reforms, loan growth by segment, and capital allocation.

Q: How do loan growth expectations break down by segment and timing?

A: Pablo discussed loan growth in the second half of 2026, with Corporate Banking expected to recover and Consumer loans growing around 6%.

Q: How is the 39% efficiency ratio guided considering loan growth and NIM?

A: Pablo explained efficiency ratio driven by expense control and fee income from growth in FAN accounts and Banchile Pagos.

Q: Update on Banchile Pagos and GDP upside risks?

A: Pablo talked about Banchile Pagos' positive growth and GDP upside risks from better copper prices, consumer confidence, and potential tax reforms.

Q: Thoughts on ROE expectations and use of excess capital?

A: Pablo discussed ROE guidance and plans to use capital for growth to achieve top returns.

Q: Evolution of cost of risk and ROA expectations?

A: Pablo explained cost of risk aligning with long-term levels and ROA influenced by economic and operational factors.