January 31, 2024 - Loans in the banking system declined by 0.85 percent in 12 months due to a 2.59-percent drop in the commercial portfolio and a 2.10-percent contraction in the consumer portfolio during that span. The housing portfolio, however, recorded a rise of 2.73 percent.
Regarding credit risk, the loan-loss provisions index and the impaired portfolio ratio increased, while the arrears ratio of 90 days or more stood pat versus last month at 2.13 percent. The loan-loss provisions index rose from 2.55 to 2.57 percent and the impaired portfolio ratio from 5.58 to 5.63 percent. All credit risk indices grew compared to 12 months ago, as well as by portfolio.
The consumer portfolio saw an increase of the three credit risk indices, and the commercial portfolio showed growth on the arrears ratio of 90 days or more while the other two had no variation. Meanwhile, the housing portfolio posted uneven trends: the impaired portfolio ratio increased, the arrears ratio of 90 days or more decreased, and the loan-loss provisions index remained the same.
Monthly profits for December reached CLP 444,335 million (USD 502 million) for an increase of 3.4 percent during the month and a decline of 20.78 percent over the past year. The return on average equity was 15.41 percent and the return on average assets 1.15 percent, both higher than the ones posted in November 2023 but also lower than December 2022.
Supervised Cooperatives
Loans by savings and credit cooperatives supervised by the CMF increased by 12 percent over the past year. The consumer portfolio, which comprises 71.16 percent of these loans, expanded 9.45 percent in that span and is the main reason behind this result. Commercial loans expanded 7.18 percent, while the housing portfolio had a 21.42-percent increase.
As for credit risk, the impaired portfolio ratio grew during the month, but the provisions index and the arrears ratio of 90 days or more declined. The arrears ratio contracted to 2.54 percent because of the commercial portfolio, and the provisions index fell to 3.65 percent due to the housing portfolio. The impaired portfolio ratio reached 7.72 percent after upward trends in the consumer and commercial portfolios.
Most credit risk indices grew compared to 12 months ago, except the provisions index and impaired portfolio ratio of the housing portfolio.
Monthly profits for December amounted to CLP 13,771 million for an increase of 26.1 percent versus last month and a decline of 32.78 percent compared to December 2022. The return on average equity was 11.65 percent and the return on average assets 2.68 percent. The former increased while the latter stood pat compared to November, but both were lower than the ones posted in the same month last year.
Links to Relevant Documents
- Report on Performance of the Banking System and Cooperatives - December 2023
- Monthly Report on Financial Information of the Banking System - December 2023
- Report on Derivative and Non-Derivative Instruments of the Banking System - December 2023
- Arrears Ratio of 90 Days or More in the Banking System - December 2023
- Report on the Impaired Portfolio of the Banking System - December 2023
- Assets and Liabilities of the Chilean Banking System Abroad - December 2023
- Balance Sheets and Statements of Banks (in plain text format) - December 2023
- Financial Report of Savings and Credit Cooperatives - December 2023
