Bank Of Chile (NYSE: BCH)

Banco de Chile is a commercial bank headquartered in Santiago, Chile, providing traditional banking products and specialized financial services. Founded in 1893, we have been among the largest and most profitable Chilean banks for much of our history. Our core business is commercial banking in Chile, serving a large and diversified customer base of individuals and companies. As a full-service financial institution, we offer a wide range of lending and non-lending products and services directly and through our subsidiaries to all segments of the Chilean financial market. Our operations are licensed by the Chilean Financial Market Commission (CMF) to operate as a commercial bank.

Banco de Chile generates revenue through multiple channels. Our primary revenue comes from interest income on lending activities including commercial loans, residential mortgages, and consumer loans. We also earn significant revenue from fee-based services such as account maintenance, transaction processing, and payment services. Additionally, our subsidiaries generate revenue through specialized financial services including securities brokerage commissions, mutual fund management fees, insurance brokerage premiums, and payment processing fees from our acquiring and processing business. Revenue is further supplemented by treasury operations through trading and investment activities, as well as various financial advisory services provided to corporate clients.

The company organizes its operations through four principal business segments: retail banking, wholesale banking, treasury, and subsidiaries.

• Retail banking: This segment serves individual customers and small and medium-sized enterprises through our branch network. It provides credit cards, installment loans, residential mortgage loans, and traditional deposit services including current accounts, demand deposits, saving accounts, and time deposits. Additionally, it offers financial solutions such as insurance brokerage, securities brokerage, and mutual fund management. The segment also delivers specialized financing and cash management solutions to micro, small and medium-sized companies.

• Wholesale banking: This segment focuses on serving corporate customers and large enterprises. It provides commercial loans including project finance, trade finance, and working capital loans, along with leasing and factoring services. The segment also offers capital markets services, cash management solutions, and non-lending services such as payroll processing, payment and collection services. Additionally, it provides a wide range of treasury products, financial advisory services, and risk management products tailored to corporate clients.

• Treasury: This segment manages the bank's liquidity, currency, and interest rate risks while generating income through sophisticated financial products and services. It engages in currency intermediation, forward contracts, interest rate swaps, and transactions under repurchase agreements. The segment also manages investment portfolios trading in bonds, mortgage finance bonds, and deposits, while ensuring adequate liquidity and managing financial exposures in the banking book through strategic funding diversification.

• Subsidiaries: This segment encompasses our specialized financial services subsidiaries. It includes securities brokerage through Banchile Corredores de Bolsa, mutual fund management through Banchile Administradora General de Fondos, insurance brokerage through Banchile Corredores de Seguros, financial advisory through Banchile Asesoría Financiera, and acquiring and processing services for credit and debit cards through Banchile Pagos. These subsidiaries extend our service offerings beyond traditional banking to meet diverse customer financial needs.

Banco de Chile maintains a strong competitive position in the Chilean banking industry. As of December 31, 2025, we ranked first in terms of net income attributable to equity holders with a 22.4% market share. We are the second largest bank in Chile by total loans (15.8% market share), second largest provider of commercial loans (15.4% market share), and second largest provider of consumer loans (18.1% market share) excluding subsidiaries abroad. Our market leadership extends to being the largest provider of mutual fund management services (23.6% market share) and holding the top position in current account balances held by individuals (23.8% market share). Key competitors include Banco Santander Chile, BCI, Scotiabank Chile, and Itaú Chile. Our competitive advantages derive from our 132-year history, strong brand recognition under the Banco de Chile and Banco Edwards-Citi brands, an extensive nationwide branch network, a diversified customer base, a cost-effective funding structure dominated by low-cost demand deposits, superior asset quality with below-average delinquency rates, and leadership in digital banking innovation.

Banco de Chile serves a broad and diversified customer base across individual and corporate segments in Chile. As of December 31, 2025, we had 1,510,415 core customers defined as those maintaining at least a current account or loan outstanding with the bank. This included 1,303,518 current account holders, 228,353 time deposit holders, and 241,734 saving account holders. Our customer base also encompassed 1,585,888 credit card account primary holders and 1,385,878 borrowers representing a 21.9% market share in number of borrowers among Chilean privately-owned banks. The bank serves individuals ranging from retail consumers to high-net-worth clients, as well as businesses from small micro-enterprises to large corporations. Our customer segmentation enables targeted service delivery through specialized units for personal banking, small and medium enterprise banking, and corporate banking, supported by our dual-brand strategy of Banco de Chile and Banco Edwards-Citi to serve different customer segments effectively.