SOURCE: Banco de Chile

Banco de Chile

April 29, 2010 08:47 ET

Banco de Chile Announces First Quarter 2010 Financial Results

SANTIAGO, CHILE--(Marketwire - April 29, 2010) -  Banco de Chile (NYSE: BCH), a full service Chilean financial institution, market leader in a wide variety of credit and non-credit products and services across all segments of the Chilean financial market, today announced its results for the first quarter ended March 31, 2010. Figures are expressed in nominal terms, unless otherwise stated.

HIGHLIGHTS

  • Banco de Chile reports an outstanding result of Ch$100,806 million for 1Q10, more than doubling its 1Q09 earnings.

  • During March 2010, Banco de Chile paid out a dividend of Ch$3.50 per share, reaching a dividend yield of 10%.

  • Fernando Cañas (CEO) resigns, effective April 30, 2010. The position will be filled by Arturo Tagle, current Institutional and Investor Relations Division Manager.

  • Citigroup Inc. announces the exercise of two call options that allow it to increase to 50% its stake in LQIF, the company that controls Banco de Chile with a shareholding of 61.7%.

Fernando Cañas, CEO: "We are quite pleased with our first quarter earnings of Ch$101 billion. Our results were in line with our expectations and demonstrated our strong earnings potential. These results translate to a Return-on-Equity of 26.5% and were achieved within a more normalized inflationary environment. We have also continued to work towards our mid-term strategic goals by improving our efficiency and service quality. During 2010, we plan to grow faster and more selectively than the industry in terms of loans. This will maintain a portfolio with suitable credit risk indicators."

Pedro Samhan, CFO: "Our first quarter is promising. We will aim to consolidate our operating revenues' trend (YoY increase of +25.7%), but we will keep a close eye on operating expenses, which have remained almost flat with respect to the 1Q09 (+1.1%).This is an area where we aim to continue improving. Furthermore, we will continue to strengthen our funding structure and capital indicators, which allow us to increase our competitiveness and solvency."

Arturo Tagle, Institutional and Investor Relations Division Manager: "Regarding the recent earthquake, we expect that it will not severely affect our loan portfolio growth or credit quality. However, we did incur some infrastructural damage caused by the catastrophe, which has led us to recognize fixed asset impairments by approximately Ch$1.1 billion. On the social side, we have actively participated in the country's reconstruction process. In fact, along with the Teleton Foundation, we took part in a national fund raising campaign, where we made important non-monetary contributions and a cash donation of Ch$750 million. Also, we have disbursed Ch$919 million in benefits to our staff that suffered losses as a consequence of the quake."

Banco de Chile's First Quarter 2010 Financial Results Press Release:
(Please click on the link below)

http://www.capitallink.com/press/BANCO_DE_CHILE_REPORTS_FIRST_QUARTER_2010.pdf

FORWARD-LOOKING INFORMATION

The information contained herein incorporates by reference statements which constitute ''forward-looking statements,'' in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating performance. Such statements include any forecasts, projections and descriptions of anticipated cost savings or other synergies. You should be aware that any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties, and that actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, without limitations, the actions of competitors, future global economic conditions, market conditions, foreign exchange rates, and operating and financial risks related to managing growth and integrating acquired businesses), many of which are beyond our control. The occurrence of any such factors not currently expected by us would significantly alter the results set forth in these statements.

Factors that could cause actual results to differ materially and adversely include, but are not limited to:

  • changes in general economic, business or political or other conditions in Chile or changes in general economic or business conditions in Latin America;
  • changes in capital markets in general that may affect policies or attitudes toward lending to Chile or Chilean companies;
  • unexpected developments in certain existing litigation;
  • increased costs;
  • unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms.

Undue reliance should not be placed on such statements, which speak only as of the date that they were made. Our independent public accountants have not examined or compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we may issue in the future. We do not undertake any obligation to release publicly any revisions to such forward-looking statements after completion of this offering to reflect later events or circumstances or to reflect the occurrence of unanticipated events

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