5-Year Performance: Top Chilean vs. U.S. Bank Stocks

by: David Hunkar

The chart below shows the five-year performance comparison of the top three Chilean banks and the four largest banks in the U.S:

[Click to enlarge]


Banco Santander Chile (NYSE:SAN) and Banco de Chile (NYSE:BCH) are the first- and second-largest Chilean banks based on assets, while CorpBanca (BCA) is one of the top 10 banks by assets.

S.No. Bank Ticker Dividend Yield as of Mar 25, 2011 5-Year Total Return Country
1 Banco De Chile BCH 4.38% 120.35% Chile
2 CorpBanca BCA 7.85% 156.68% Chile
3 Banco Santander Chile SAN 3.18% 91.07% Chile
4 Bank of America BAC 0.30% -71.56% U.S.
5 Wells Fargo WFC 0.63% -1.69% U.S.
6 Citigroup C 0.00% -90.67% U.S.
7 JPMorgan Chase JPM 2.18% 8.92% U.S.

In the past five years, the S&P 500 has been flat at 0.83%. Among the four largest U.S. banks, only JPMorgan Chase has been a decent performer. This week, the Federal Reserve rejected Bank of America’s proposal to increase its dividend payments. JPMorgan Chase has announced plans to buy back stock worth $15 billion and raise its dividend in the second quarter to 25 cents a share up from 5 cents now. Wells Fargo has increased the quarterly dividend rate to $0.12 a share and announced the repurchase of its common stock by an additional 200 million shares. Citigroup plans to reinstate a one-cent dividend and implement a reverse stock split in the ratio of 1 for 10 after the market close on May 6. Citi’s total outstanding shares stands at a massive $29 billion, and in the last 50 days an average of 509 million shares were traded on the NYSE. As a result of the reverse split, the daily trading volume on the NYSE is projected to fall by an incredible 11% according to a Reuters report.

Disclosure: Long BCH