BCH · Banco de Chile

Banco de Chile's 1Q26 Financial Management Review, prepared per CMF standards and IFRS Practice Statement 1, details a challenging quarter with net income declining 18.3% year-over-year to Ch$268,628 million. This downturn was primarily driven by a 26.6% surge in credit loss expenses to Ch$114,178 million, outpacing the modest 2.5% rise in operating expenses to Ch$287,925 million. Operating revenues fell 3.9% to Ch$748,885 million, reflecting potential pressures in the lending and fee-based segments amid the described economic environment. The report highlights the bank's historical consolidations, including mergers with Banco de A. Edwards in 2002 and Citibank Chile in 2008, supporting its leading position through brands like Banco de Chile and Banco Edwards-Citi. Ownership remains stable with LQIF holding 51.15%, ensuring strategic continuity. Forward-looking statements caution on risks including Chilean and Latin American economic conditions, capital markets, litigation, costs, financing challenges, disasters, regulations, and those in the latest 20-F. No specific guidance is provided, but the bank's solid equity base of 101,017,081,114 shares and high credit ratings underscore resilience for investors. The document emphasizes ongoing commitments to customers, staff, shareholders, and community, with a nationwide branch network and advanced digital platforms serving over 2 million customers.