Banco De Chile (BCH), a key player in Chile’s banking sector since 1893, has been designated as Zacks Rank #5 (Strong Sell) due to declining earnings momentum. Analysts have revised earnings estimates downward for both the current year and next year amidst challenges such as slower loan growth and tightening financial conditions, leading to a drop in the Zacks Consensus Estimate from $2.56 to $2.54 for this year and from $2.81 to $2.73 for the next.
As one of the cornerstones of the Chilean banking system, Banco De Chile offers a range of financial services, but faces pressures from uneven economic growth and high inflation. These factors are affecting its net interest margins and increasing credit costs, highlighting the institution’s current vulnerabilities.
In contrast, other banks in the foreign banking sector are seeing better performance, including Banco Bilbao Viscaya Argentaria (BBVA) and Itau Unibanco (ITUB), both of which hold a Zacks Rank of #1 (Strong Buy).
