Return on equity (ROE) declined at leading banks in Chile last year on the back of the impact of the Covid-19 pandemic and political unrest in the country over efforts to rewrite the country’s constitution, which dates from the era of General Augusto Pinochet’s regime.
Banco de Crédito e Inversiones, Chile’s largest lender by Tier 1 capital, saw ROE drop to 8.2% last year from 10.6% in 2019, according to The Banker Database.
Meanwhile, Banco de Chile, the second largest bank by Tier 1, saw ROE fall to 12.4% last year from 16.8% in 2019. Over the past five years, Banco de Chile’s ROE has steadily declined from 19.1% in 2016.
Banco Santander Chile, the country’s third largest bank by Tier 1 capital but second largest by assets, saw ROE fall to 14.3% in 2020 from 15.9%. With the lowest ROE over the past two years, Banco del Estado de Chile's declined from 10.1% in 2019 to 7.6% last year.
Scotiabank Chile saw a modest drop in ROE last year to 11.4% from 12.8% in 2019, rebounding from 6.0% in 2018.
Trends identified using The Banker Database, an online database providing comprehensive financial data and insight for 4000 of the world's leading banks in 190 countries. Contact us.
