2023-12-01 14:59:42
This Thursday, the Financial Market Commission (CMF) reported the results of the banking industry at the end of October, ending with accumulated profits of US$ 4,067 million. This figure is 26.4% lower than in 2022.
The regulator explained that the drop is due to a lower interest margin and readjustments, as well as higher operational and tax expenses.
Meanwhile, the Association of Banks (ABIF) reported that credit maintained low dynamism in October, declining in line with the contraction of economic activity. The balance of total loans fell 2.3% in 12 months.
At the portfolio level, the commercial segment is not raising its head. The flow of new operations reached a monthly average of US$ 8,050 million in the moving quarter from August to October, 9% less than in 2022.
The ABIF explained that the lack of dynamism of the business portfolio “is attributed above all to weak credit demand associated with low levels of investment.”
Increase the risk
One aspect that was highlighted in the union’s report is the increase in delinquencies. In the last two months, delinquencies greater than 90 days resumed increases.
Thus, the delinquency indicator in the commercial portfolio rose from 1.71% in October 2022 to 2.16% on the same date in 2023; in mortgages it jumped from 1.17% to 1.71%: and in consumption it rose from 2.30% to 2.82%.
The ABIF explained that this responds “not only to the normalization of delinquency levels after the end of the pandemic, but also to the increase in latent credit risk in a complex macroeconomic context.”
The current economic outlook is “characterized by a contraction in economic activity, a weak labor market, an inflation rate that still exceeds the Central Bank’s target range and an uncertain international outlook, which combines low growth prospects, the rise of long-term interest rates due to concerns about the sustainability of public debt in the US and risks associated with various geopolitical conflicts.”
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