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CMF reports on the performance of banks and cooperatives as of October 2019

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November 28, 2019.- Loans in the banking system grew 8.45 percent in 12 months during October, down from 8.74 percent in September of this year but above the 7.88 percent variation in October 2018.

Compared to September 2019, the three portfolios grew less. Commercial loans increased by 6.68 percent, consumer loans by 15.09 percent, and housing loans by 7.96 percent.

Meanwhile, the loan-loss provisions index increased to 2.51 percent, the arrears ratio of 90 days or more was 1.95 percent, and the impaired portfolio ratio got 5.01 percent.

Profits for October reached 110,581 million Chilean pesos (USD 152 million), a decrease of 50.80 percent compared to the previous month. Rises in provision expenses plus a drop in interest margins and the results of financial operations (ROF), as well as an increase in support costs, explain this lower monthly result.

Supervised Cooperatives

Loans by Savings and Credit Cooperatives supervised by the CMF rose 4.97 percent over 12 months, down from 5.02 percent in September. A lower growth of the consumer portfolio (only 6.64 percent) explains this variation.

Regarding credit risk, all three indicators improved compared to the previous month. The loan index reached 4.59 percent, the arrears ratio of 90 days of more was 3.26 percent, and the impaired portfolio got 7.43 percent.

Monthly profits fell 56.41 percent, mainly due to a rise in net provision expenses and a fall in net commissions. In turn, the cumulative result reached 63,345 million Chilean pesos, falling 8.44 percent over 12 months.

Performance Report

Alongside this month’s financial information, the analysis published in the Performance Report includes a section on the commercial portfolio regarding the composition and evolution of its respective products, among other factors.

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