Loans in the banking system declined by 2.99 percent in 12 months, as Graph 1 shows. A fall of 5.74 percent in the commercial portfolio plus a contraction of 2 percent in the consumer portfolio are the main reasons behind this result. Meanwhile, the housing portfolio grew by 1.99 percent in that span.
Graph 1: Total loans and loans by portfolio in the banking system
(Real annual variation expressed in percentage)
Purple: Total loans. Red: Commercial loans. Blue: Consumer loans. Green: Housing loans.
In terms of credit risk, the loan-loss provisions index showed no variation, while the arrears ratio of 90 days or more and the impaired portfolio ratio increased during September. Most indices show a slight upward trend across all portfolios: all three increased in consumer loans; and the latter two in housing loans.
The impaired portfolio ratio increased from 1.94 to 2.02 percent, and the impaired portfolio ratio grew from 5.36 to 5.4 percent due to higher coefficients in all portfolios. The loan-loss provisions index stood pat at 2.53 percent as coefficient increases in consumer and housing loans were dampened by a downward trend in the housing portfolio.
All three indices expanded across the three portfolios compared to the same month last year.
Monthly profits for September reached CLP 303,213 million (USD 334 million), decreasing by 7.99 percent during the month and by 27.65 percent over the past year. Accordingly, the return on average equity was 15.58 percent and the return on average assets 1.12 percent. Both figures are lower than the ones reported last month and in September 2022.
Savings and Credit Cooperatives
Loans in savings and credit cooperatives supervised by the CMF expanded by 12.45 percent over 12 months. The consumer portfolio, representing 71.94 percent of these loans, is the main reason behind these results after an 11.13-percent growth during September. The housing and commercial portfolios increased by 18.37 and 5.44 percent, respectively.
The overall figure considers the inorganic growth of the consumer portfolio resulting from a portfolio purchase made by a cooperative in 2022, which impacted the industry's activity from the second half of that year onwards. Excluding said effect, loans would have grown by 11.5 percent during September, as Graph 2 shows:
Graph 2: Total loans and loans by portfolio granted by savings and credit cooperatives
(Real annual variation expressed in percentage)
Purple: Total loans. Dotted Purple: Total loans without considering portfolio purchase. Red: Commercial loans. Blue: Consumer loans. Green: Housing loans.
Regarding credit risk, the provisions index increased to 3.75 percent and the impaired portfolio ratio to 7.71 percent because of identical trends across all portfolios. A lower coefficient in the consumer portfolio adjusted the arrears ratio of 90 days or more down to 2.67 percent.
All three indices expanded across the three portfolios compared to the same month last year except for two in housing loans (provisions and impaired portfolio) which declined in that span.
Monthly profits for September amounted to CLP 5,706 million (USD 6 million), a decline of 48.61 percent versus last month and 48.52 percent versus September 2022. Accordingly, the return on average equity was 11.01 percent and the return on average assets 2.58 percent, both lower than August 2023 and the same month last year.
Links to Relevant Documents
- Report on Performance of the Banking System and Cooperatives - September 2023
- Monthly Report on Financial Information of the Banking System - September 2023
- Report on Derivative and Non-Derivative Instruments of the Banking System - September 2023
- Arrears Ratio of 90 Days or More in the Banking System - September 2023
- Report on the Impaired Portfolio of the Banking System - September 2023
- Assets and Liabilities of the Chilean Banking System Abroad - September 2023
- Balance Sheets and Statements of Banks (in plain text format) - September 2023
- Financial Report of Savings and Credit Cooperatives - September 2023
