FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

     Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of November, 2011

Commission File Number 001-15266

BANK OF CHILE
(Translation of registrant's name into English)

Ahumada 251  
Santiago, Chile
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F___X___ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934.

Yes____ No___X___

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________

BANCO DE CHILE
REPORT ON FORM 6-K

Attached is a Press Release issued by Banco de Chile (“the Bank”) on November 8, 2011, regarding its financial statements for the nine months ended September 30, 2011.

Santiago, Chile, November 8, 2011, 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 third quarter ended September 30, 2011.

Figures are expressed in nominal terms, unless otherwise stated. Also, certain figures included in this report have been rounded for ease of presentation, while percentage figures have not in all cases been calculated on the basis of such rounded figures, but on the basis of such figures prior to rounding.

Our Brands

*Citi and the arc design in Trademark registered by Citigroup Inc. Use under License.

· CORREDORES  DE BOLSA · ADMINISTRADORA GENERAL DE FONDOS  ·  

CORREDORES DE SEGUROS · ASESORIA FINANCIERA ·  

FACTORING · SECURITIZADORA · 

2011 Third Quarter:

“Enhancing Our Market Position”

·         Our commercial activity remains strong. In the 3Q11, we posted a 22.8% YoY increase and a 5.7% QoQ growth in our loan portfolio. Consequently, EBIT from our core lending segments has increased by 14.9% YoY. 

·         Banco de Chile placed around US$1,000 million in AAA senior bonds within the local market at low spreads.

·         Banco de Chile was the financial leader in net income generation, posting Ch$98 billion during the 3Q11.

·         Euromoney and Latin Finance distinguished Banco de Chile as the Best Local Bank in Chile.

Arturo Tagle, CEO: “The 3Q11 has been a challenging quarter for our business activity. On the one hand, we have witnessed high volatility in international financial markets wich has affected the local market, impacting the operations carried out by our Treasury area, Securities Brokerage and Mutual Fund subsidiaries. On the other hand, we have faced internal events, such as a collective bargaining process that temporarily increased our operating expenses. Nevertheless, the dynamics shown by the local economy in terms of employment creation and consumption continues to drive our loan growth, which posted a strong rise of 22.8% YoY. This performance enabled us to gain 102 bp in market share in a 12-month period, to reach a stake of 19.8%. In terms of results, Banco de Chile was the financial leader this quarter, recording Ch$98 billion in net income and posting an ROAE of 25.1% as of September 30, 2011.”

Jennie Coleman, Human Resources Division Manager: “We are proud to inform that we have successfully completed the negotiation of the collective bargaining agreements with our unions. We reached a four year agreement with two of the unions and a three year agreement with the remaining union. The mentioned agreements enabled us to align the benefits obtained by the different unions and extend these to the rest of our non-unionized workforce. The process, as is customary in Chile, concluded with a special bonus granted to our staff totalling approximately Ch$28 billion.”

Pedro Samhan, CFO: “As mentioned by our CEO, during the quarter we faced external and internal forces that impacted our results and operations. Nevertheless, I am pleased to announce that these forces were successfully overcome and we continue to be focused on our mid-term strategic goals. In relation to efficiency, the collective bargaining agreements reached with our unions temporarily affected our ratio which increased to 49.1% in the 3Q11. Excluding this extraordinary event, which was mostly recognized during the second quarter, this figure reaches 47.2%. Thus, we are confident that our cost base remains under control. Finally, I would like to highlight that we have been very active in terms of funding. In fact, we placed in the 3Q11 roughly US$1,000 million in senior AAA rated local bonds, at low spreads.”

FINANCIAL SNAPSHOT

In the 3Q11, our net income amounted to Ch$98 billion, slightly below the figure recorded a year earlier (1.7%) and 14.8% lower with respect to the 2Q11. The YoY decrease posted by our net income was mainly prompted by:

·       Lower revenues from the management of our balance sheet gaps as a result of higher interest rates and lower inflation.

·       An increase in our operating expenses, mainly due to extraordinary expenses related to collective bargaining agreements and higher business activity.

·       Higher effective tax rate was mainly related to the rise in the statutory rate, the lower inflation in the 3Q11 and a reduction in the tax benefit we receive from the subordinated debt payments.

The above was partially offset by higher income related to the significant YoY rise in our loan portfolio and the YoY increase in yields from non-interest bearing liabilities.

As a result our ROAE reached 21.0% in the 3Q11, as compared to the 26.1% attained in the 3Q10.

Our operating revenues accounted for Ch$310 billion in the 3Q11, which is 9.4% above the figure recorded in the 3Q10. This YoY increase was mainly fostered by:

·     Our market leading position in non-interest bearing liabilities, which along with the sharp increase in the local interest rates, resulted in a higher yield of approximately Ch$13.0 billion from this type of funding.

·     A 22.8% YoY rise in our total loans, prompted by the dynamics of the economy in the last 12 months in terms of investment and consumption.

·     Higher Net Financial Operating and FX Income associated to the hedge of our allowances denominated in USD.

The above was partially offset by:

·      A YoY decrease in the income from the management of our balance sheet gaps, mainly as a result of lower inflation and higher funding costs due to higher interest rates in the 3Q11 as compared to the 3Q10. 

·     Lower spreads due to higher competition and a larger corporate loan and residential mortgage mix.

Fees and commissions slightly decreased by 0.8% YoY. This was mainly due to lower business activity in our securities brokerage firm and in our mutual fund business. Nevertheless, this result was in line with a riskier external economic scenario and a flight to quality from investors which look haven in fixed-income instruments. This was partially offset by our focused commercial strategies that generated higher fee revenue from credit cards and insurance brokerage.

KEY FIGURES

Our credit quality continues posting positive figures, in line with the current economic scenario. However, provisions for loan losses grew by 18.7% YoY. This rise is mostly attributable to greater business volumes and macroeconomic factors, rather than credit risk deterioration. Specifically this was due to:

·         Strong 22.8% YoY rise in loans, which translates into greater provision charges due to growth.

·         Sharp devaluation of the CLP in relation to the USD, which affected the value of our USD denominated loans and related provisions. This resulted in an additional charge for provisions for loan losses of Ch$6.9 billion in the 3Q11. However, we currently hedge our positions in foreign currencies and this charge is completely offset in operating revenue. Excluding this effect, provisions would have amounted to Ch$38.3 billion in the 3Q11.

Provisions for loan losses as a percentage of loans remained relatively flat at 1.11% in 3Q11 (0.94% excluding the effect of the FX variations). Nevertheless, our better credit quality is demonstrated in our delinquent loans ratio which dropped from 1.41% in the 3Q10 to 0.97% in the 3Q11. The latter is the result of positive economic scenario and our well-designed collection strategies that have reduced our charge-offs and improved recoveries. Nevertheless, it is important to highlight that we are prepared for an eventual adverse economic situation should the need arise. We currently maintain a coverage ratio (allow. / Total Past Due) of 2.5x and counter-cyclical provisions equal to Ch$73 billion.

KEY FIGURES

The 11.4% YoY rise in operating expenses is mainly related to a collective bargaining process which ended in August 2011. As a result of this process, we provisioned Ch$22.4 billion in the 2Q11 in other operating expenses. During August 2011, we reclassified the previously mentioned amount and charged an additional Ch$5.7 billion to personnel expenses which was related to a special bonus granted to our staff as part of the collective bargaining agreements. Adjusting personnel expenses by this event, the 43.5% variation decreases to only 3.6% YoY, in line with inflation.

Our administrative expenses grew 14.0% YoY, reaching Ch$57.0 billion in the 3Q11. The rise is mostly explained by: (i) IT expenses (+Ch$4.0 billion) in line with higher transactional processing, software licenses and our strategic IT plan, (ii) Co-branding expenses (+Ch$2.2 billion) mainly related to the sharp rise in the USD/CLP exchange rate, (iii) outsourced sales force expenses (+Ch$1.8 billion) due to the higher commercial activity in retail banking, and (iv) maintenance and rental expenses (+Ch$1.2 billion) related to our larger distribution network.

The above factors translated into an increase in our efficiency ratio, from 48.2% in the 3Q10 to 49.1% in the 3Q11. However, if adjusted by the non-recurring charges related to the collective bargaining process, this ratio drops to 47.2%, in line with prior periods.

KEY FIGURES

Our core business activity remains strong. As of September 30, 2011 our loans totalled Ch$16,777 billion, entailing a 22.8% YoY growth. This significant rise enabled us to gain 102 bp in market share in a 12-month period, closing the quarter with a stake of 19.8%.The above figures are supported by double-digit growth rates in all of our credit products.

·       Commercial loans demonstrated the most significant growth during the quarter, posting a 24.5% YoY rise and reaching Ch$10,944 billion. This increase is attributable to our competitive lending offering together with the positive business sentiment (Large Companies and SMEs) that has driven the high investment rate.  In addition, during the 3Q11 the exchange rate (CLP/USD) increased by 9.3%, positively impacting the balances of USD denominated commercial loans such as foreign trade and factoring. All of these factors enabled us to gain 106 bp in market share, confirming our leading market position in this product with a 20.7% stake as of September 30, 2011.

·       Residential mortgage loans continue growing strong, posting a 20.9% YoY rise. Consequently, we gained 117 bp in market share during the 12 month period and obtained a participation of 16.0%. As mentioned in prior releases, this performance is the result of our efforts to enhance this product by providing new service models and taking advantage of synergies between our retail and wholesale banking divisions. 

·     Consumer loans grew by 18.5% YoY, slightly above the average in the industry. Accordingly, we captured 17 bp in market share, reaching 22.3%. The growth in this portfolio has been fostered by an increased activity in credit cards and instalment loans, whose balances grew by 27.8% and 19.1% YoY, respectively.

KEY FIGURES (In Billions of Ch$, except for %)
	Loan Portfolio & Funding
	(in billions of Ch$)	Sep-10	Jun-11	Sep-11	YoY % Change
	LOANS TO CUSTOMERS
	Commercial Loans	8,793	10,316	10,944	24.5%
	Residential Mortgage Loans	2,816	3,243	3,404	20.9%
	Consumer Loans	2,051	2,317	2,429	18.5%
	LOANS TO CUSTOMERS	13,660	15,876	16,777	22.8%
	FUNDING
	Non-interest Bearing Liab.	5,852	6,141	6,164	5.3%
	Interest Bearing Liab.	10,322	12,475	13,572	31.5%
	TOTAL LIABILITIES	16,174	18,616	19,736	22.0%
	Avg. Int. Earning Assets Avg. Int. Bearing Liabilities	1.51	1.53	1.52

Our funding structure remains as one of our competitive advantages. We continue to be the market leader in non-interest bearing liabilities, holding a 23.2% market share in current accounts and other demand deposits as of September 30, 2011. As a result, 22.9% of our assets are funded with these deposits, reducing our cost of funding in a scenario of increasing nominal interest rates and stable inflation.

In addition, we continued diversifying our funding structure by placing ~US$1,000 million in senior bonds within the local market. These AAA rated bonds were placed at low spreads (1.0% on average) as compared to bonds issued by the Chilean Central Bank, demonstrating the confidence that market agents have in our business model and future outlook.

On the other hand, in line with the higher interest rates paid on deposits and the higher volatility observed in financial markets, saving accounts and time deposits posted a 26.4% YoY rise.

Funding Structure

Breakdown

(As of September 30, 2011)

Our equity posted a 23.4% YoY increase, accounting for Ch$1,698 billion as of September 30, 2011. This significant annual rise, which accounts for Ch$322 billion mainly relates to:

·         Approximately Ch$210 billion associated with our successful equity offering, which began on January 20, 2011 - with the approval of our shareholders – and finished on July 19, 2011.

·         The capitalization of Ch$67 billion equivalent to 30% of our 2010’s net distributable earnings (after the payment to the Central Bank corresponding to 100% of net distributable earnings of SAOS’s stake in Banco de Chile’s dividends).

·         Roughly Ch$32 billion of  our 2010’s net income was retained to recognise the effect of accumulated inflation on shareholders’ equity.

·         Nearly Ch$14 billion in  higher net income (net of provisions for minimum dividends) posted as of September 30, 2011 as compared to September 30, 2010.

The above-mentioned elements have allowed us to face and support the already mentioned significant growth evidenced by our business activity. Accordingly, our stronger capital base has allowed us to maintain capital adequacy ratios above the thresholds required by the Chilean regulator. Thus, despite the important YoY growth posted by our loans, we posted a BIS ratio of 12.8% as of September 30, 2011. In absence of our recent capital increase, this ratio would have reached 11.7%. Worth noting is that the Chilean regulator imposes a BIS ratio of 10.0%  on Banco de Chile.

Our remaining capital adequacy indicators keep well above the limits imposed by the Superintendency of Banks. As of September 30, 2011 we had a ratio of Basic Capital to Total Assets that amounted to 6.9%, which is more than twofold the required limit and a Tier I (Basic Capital) to Risk Weighted Assets of 8.8%.

CAPITAL ADEQUACY

As of September 30, 2011 our capital stock was composed of 86,942,514,973 shares. This amount increased from 82,551,699,423 shares outstanding as of December 31, 2010, due to the issuance of 1,005,766,185 fully paid shares related to the 30% capitalization of our 2010’s distributable earnings and the issuance of 3,385,049,365 shares associated with our recent capital increase.

As of September 30, 2011 LQIF Group continues to control Banco de Chile holding directly and indirectly a 59.3% stake in the Company (61.7% in September 2010).  Conversely, our free float amounts to 15.5% as of the same period (12.1% in September 2010).

RESULTS BY BUSINESS SEGMENTS

Our retail banking segment continues posting solid results and loan growth. In the 3Q11, the segment recorded a net income before taxes of Ch$60.0 billion, which entails a 21.5% YoY increase mainly due to higher total operating revenues and a slight decrease in provisions for loan losses.

Total Operating Revenues grew by 11.6% YoY, as a result of:

·         Strong loan growth in all credit products (+19.8%).

·         The positive effect of higher interest rates on the contribution of the segment’s non-interest bearing liabilities.

·         Solid growth in fees and commissions (+10.0%), mainly fostered by a higher activity in insurance brokerage and an increase in the usage of transactional products in line with our effective marketing campaigns.

The above was partially offset by an increase operating expenses (+10.6%), which was mainly associated with extraordinary expenses related to the collective bargaining process, sales force expenses as well as rental and maintenance expenses.

RESULTS BY BUSINESS SEGMENTS

Our Wholesale Banking segment posted strong loan growth during the period and recorded an increase of 4.8% in net income before taxes as a result of higher total operating revenues.

Total Operating Revenues posted solid growth of 23.3%, as a

result of:

·         A firm rise in loans (+25.5%).

·         The positive effect of higher interest rates on the contribution of the segment’s non-interest bearing liabilities.

·         The sharp devaluation of the CLP in relation to the USD, which generated foreign exchange income related to the hedge on USD denominated allowances. This resulted in additional income of Ch$6.9 billion in the 3Q11.

The above was partially offset by:

·         Higher provisions associated to USD denominated allowances.

·         A rise in operating expenses which is mainly explained by the extraordinary bonus granted to our staff (collective bargaining process) as well as higher IT allocated expenses as a result of the higher commercial activity.

Notes:

RESULTS BY BUSINESS SEGMENTS

Treasury posted a 54.1% YoY decrease in net income before taxes, reaching Ch$6,677 million in the 3Q11, as compared to Ch$14,544 million recorded in 3Q10.

Total operating revenues decreased by Ch$7.2 billion as a result of:

·         The strong rise in the monetary policy interest rate that negatively impacted net interest income, raising funding costs faster than interest earned in UF denominated fixed-income AFS securities.

·         Rate changes in the UF/Peso swap spread negatively impacted the results of derivative positions in 3Q11 (Other Operating Income) as compared with results in 3Q10.

In addition, it is important to highlight that the net unrealized losses on available for sale instruments recorded in the 3Q11 was due to a strong increase in spreads associated to foreign currency instruments held offshore (mainly corporate and financial institutions bonds) as a consequence of the international financial turmoil experienced in the 3Q11.

RESULTS BY BUSINESS SEGMENTS

Our subsidiaries posted slight 2.1% YoY decrease in net income before taxes which is explained by:

·       A decline in net income from our Securities Brokerage subsidiary, mainly as a result of a decrease in the stock trading turnover managed by the company that translated into a decline in fees and commissions related to stock brokerage.

·       Mutual Funds subsidiary experienced lower business activity, which was reflected in a decline in average assets under management (from Ch$4,491 billion in the 3Q10 to Ch$4,088 billion in the 3Q11), in line with a riskier environment and uncertainty regarding future developments in the local and international markets

·       Higher operating expenses related to an extraordinary bonus provided to employees from our Insurance Brokerage subsidiary.

The aforementioned was partly offset by:

·         Strong increase in net income from our factoring subsidiary.

·         Greater results from our Financial Advisory subsidiary, as a result of higher activity in equity and securities advisory.

CONSOLIDATED STATEMENTS OF INCOME

(Under Chilean-GAAP)

CONSOLIDATED BALANCE SHEETS

(Under Chilean-GAAP)

CONSOLIDATED BALANCE SHEETS

(Under Chilean-GAAP)