Banco de Chile Net Income Falls 1.8% to 287,734 Million Pesos in Third Quarter
Key Facts
Banco de Chile posted net income of 287,734 million Chilean pesos in the third quarter of 2026, down 1.8% year over year, according to its filing with the U.S. Securities and Exchange Commission. The decline came despite a 3.0% rise in quarterly operating revenue to 757,587 million pesos. Operating expenses increased 7.2% to 296,231 million, while credit-loss expenses rose 21.2% to 96,392 million. The results reflect the growing impact of expenses on profitability during the quarter, while revenue continued to grow. Net income in the third quarter of 2025 was 292,914 million pesos.
The bank said credit-loss expenses increased by 16,832 million pesos year over year in the third quarter. Part of the increase was related to the retail segment, where credit-loss expenses rose by 10,969 million pesos compared with the same period in 2025. Risk expenses in the wholesale corporate segment also increased by 2,309 million pesos. The filing said deteriorating asset quality and rising delinquencies in retail contributed to higher risk expenses. The ratio of loans more than 90 days past due in the segment rose from 1.87% in September 2025 to 2.15% in September 2026, and the bank said this continued to drive risk expenses during the quarter.
For the nine months ended September 30, operating revenue increased 6.6% to 2,428,498 million Chilean pesos. Cumulative net income rose 2.2% to 946,929 million, compared with 926,725 million in the corresponding period of 2025. The cumulative picture differs from the standalone quarterly result, as net income remained higher year over year over the nine months despite declining in the third quarter. The bank said additional provisions of 50,000 million pesos were established in the second quarter and contributed to the cumulative comparison of credit-loss expenses. Credit-loss expenses totaled about 279,258 million pesos in the first half of 2026, compared with 186,520 million in the first half of 2025.
The bank's net income in the second quarter of 2026 was 390,567 million Chilean pesos, compared with 304,867 million in the second quarter of 2025. This provided a different backdrop to the year-over-year decline in net income recorded in the third quarter. In its filing, the bank linked higher credit expenses to specific developments in the retail and wholesale segments, as well as the effect of provisions recorded in the second quarter on the cumulative comparison. The second-quarter figure alone does not reflect the nine-month result, which showed cumulative net income rising to 946,929 million pesos. Revenue growth over the nine months thus coincided with a decline in third-quarter income and higher credit costs.
For the rest of the year, Banco de Chile expects credit-loss expenses as a share of average loans to be about 1.2% in 2026. The forecast includes additional provisions recorded in May, while excluding any other changes in provisions and non-recurring effects in the fourth quarter. The estimate frames the bank's outlook for the year's cost of credit, while the ratio remains tied to the assumptions it cited in its filing. In the market, an Investing.com report published on October 30 said third-quarter earnings per share were $0.66, compared with analysts' estimate of $0.68. The report added that quarterly revenue was $778.06 million, compared with a consensus estimate of $819.97 million.