April 30, 2024 - Loans in the banking system rose 2.1 percent over 12 months in March. This increase was due to a 1.59-percent growth in commercial loans and a 3.61-percent expansion in housing loans during that span. Consumer loans, however, declined by 1.07 percent.
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.
On credit risk, the loan-loss provisions index and the impaired portfolio ratio stood pat, while the arrears ratio of 90 days or more declined. The commercial portfolio saw rises on all three indices; the consumer portfolio's indices trended downward; and the housing portfolio posted mixed results: a decrease in arrears of 90 days or more paired with increases in the impaired portfolio ratio and loan-loss provisions index.
Accordingly, the loan-loss provisions index remained at 2.58 percent and the impaired portfolio ratio at 5.75 percent, while the arrears ratio of 90 days or more fell from 2.26 to 2.24 percent.
All credit risk indices crew across all portfolios versus 12 months ago.
Monthly profits for March amounted to CLP 461,788 million (USD 470 million) for an increase of 19.17 percent compared to last month and 7.04 percent over the past year. Accordingly, the return on average equity was 15.35 percent and the return on average assets reached 1.16 percent. Both figures best the ones posted last month but are lower than those of March 2023.
Supervised Cooperatives
Loans by savings and credit cooperatives supervised by the CMF rose 11.55 percent in 12 months. The consumer portfolio, which comprises 71.02 percent of such loans, grew 9.03 percent in that span. The commercial and housing portfolios expanded by 5.8 and 20.91 percent, respectively.
Graph 2: 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.
Regarding credit risk, the provisions index increased during the month, while the arrears ratio of 90 days or more and impaired portfolio ratios declined. The provisions index reached 3.8 percent; the arrears ratio of 90 days or more fell to 2.68 percent; and the impaired portfolio ratio was 7.86 percent.
Compared to last month, these trajectories were due to the consumer portfolio's provisions index; the arrears ratio of 90 days or more of the housing and commercial portfolios; and the impaired portfolio ratio across all portfolios.
All credit risk indices increased compared to 12 months ago. There were, however, some decreases in the commercial portfolio's provisions index and the impaired portfolio ratio.
Monthly profits for March reached CLP 8,529 million (USD 9 million), a growth of 40.99 percent during the month and 3.69 percent in 12 months. Accordingly, the return on average equity was 11.7 percent and the return on average assets reached 2.62 percent. Both figures best the ones posted last month but are lower than those of March 2023.
Links to Relevant Documents
- Report on Performance of the Banking System and Cooperatives - March 2024
- Monthly Report on Financial Information of the Banking System - March 2024
- Report on Derivative and Non-Derivative Instruments of the Banking System - March 2024
- Arrears Ratio of 90 Days or More in the Banking System - March 2024
- Report on the Impaired Portfolio of the Banking System - March 2024
- Assets and Liabilities of the Chilean Banking System Abroad - March 2024
- Balance Sheets and Statements of Banks (in plain text format) - March 2024
- Financial Report of Savings and Credit Cooperatives - March 2024
