Banco de Chile (BCH)

Since its formation in 1893, Banco de Chile (BCH) has come a long way to position itself as one of the leading banks in Chile. The January 2001 merger with another Chilean commercial bank, Banco de A. Edwards, enabled Banco de Chile to establish itself as the second largest private bank in Chile, with an 18.5% market share and Ch$14,621 billion (US$27 billion) in total assets as of December 31, 2007. This comprehensive financial services provider, which is listed on the New York Stock Exchange (NYSE), the Madrid Stock Exchange, and the London Stock Exchange, primarily focuses on commercial banking.

As a full-service financial institution, BCH provides, directly and indirectly through its subsidiaries and affiliates, a wide variety of credit and non-credit products and services to all segments of the Chilean financial market. Its business is organized on the basis of two markets: the retail market, which includes the operations of individuals and middle-market, small and micro businesses and the wholesale market, which includes the operations of corporations and international banking activities, large companies and financial and treasury operations. Together with its eight non-banking financial services subsidiaries--Securities Brokerage, Investment and Mutual Funds, Collections, Retail Sales, Factoring, Insurance, Financial Advisory, and Securitization--BCH provides a wide range of products and services. Geographically, net revenue in 2006 (latest annual data available) divided 97% Chile and 3% other, primarily the United States.

BCH intends to expand its operations to cope with growth of the Chilean economy, recent trade agreements, and decreasing unemployment. Specifically, the company's strategic plans include: (1) expansion of branch and ATM networks to locations where BCH has little or no presence (2) strengthening of the sales force (3) strategically cross-selling products and services, such as mutual funds, lease financing, factoring, insurance and securities brokerage services (4) developing commercial agreements and strategic alliances with leading companies in other industries (such as retail businesses, insurance companies, pension management funds, and telecommunications companies) and (5) developing and improving credit scoring techniques.

In 2007, 80% of net revenue (total revenue less interest expense) of Ch$693 billion (US$1.4 billion) was generated from interest-bearing sources, while the remaining 20% of net revenue came from fee-based and other non-interest sources. With 298 branches and 1,414 ATMs, Banco de Chile boasts of offering the best quality service in the banking industry. Banco de Chile enjoys long-term credit ratings of A2 by Moody's and A by both Standard & Poor's and Fitch.

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