Loans in the banking system broke their growth dynamic at the end of October, increasing by only 0.16 percent in real terms over the past 12 months due to a fall in the commercial portfolio. Meanwhile, consumer loans grow for the sixth month in a row and housing loans increase slightly, albeit at a lower rate than that of September.

Total loans and loans by portfolio, banking system
(Real annual variation expressed in percentage)

Gray: Total loans. Aqua: Commercial loans. Purple: Consumer loans. Orange: Housing loans.

Aggregate credit risk indices post a slight growth versus September. The loan-loss provisions index reaches 2.56 percent (up from 2.55 in September), while the arrears ratio of 90 days or more (AR90) moves to 2.39 percent (2.38 in September). The impaired portfolio ratio (IPR) shows no variation at 5.99 percent.

Indices show uneven behavior across portfolios. They decrease in the consumer portfolio, while most increase in the housing and commercial portfolios - the AR90 and IPR for housing loans being exceptions. Indices repeat their uneven behavior compared to 12 months ago, increasing in the housing portfolio; decreases in the commercial portfolio; and most of them falling in the consumer portfolio (see Page 4 of the Performance Report).

Provisions' coverage increases compared to both last month and 12 months ago.

Cumulative results grow due to lower tax expenses in financial statements because of accounting adjustments that move part of said taxes to future periods (deferred taxes), as well as increases in net financial results and net income from fees. These compensate for drops in interest and readjustment margins. Better figures impact profitability indices compared to a year ago: the return on average assets (ROAA) increases to 1.37 percent and the return on average equity (ROAE) to 15.66 percent.

Loans granted by savings and credit cooperatives post an increase above that of August, but below the one recorded in October 2024. The consumer portfolio, which represents 69.1 percent of total operations, expanded by 4.57 percent in real terms over 12 months and is the main reason behind this result.

Total loans and loans by portfolio, savings and credit cooperatives

(Real annual variation expressed in percentage)

Gray: Total loans. Aqua: Commercial loans. Purple: Consumer loans. Orange: Housing loans.

Credit risk indices fall versus September: the provisions index from 4.13 to 4.12 percent; the AR90 from 2.2 to 2.07 percent; and the AR90 from 8.12 to 8.1 percent. Indices decline in the commercial and housing portfolios but increase in the consumer portfolio - except a decrease in the AR90.

Increased interest margins led to higher results in October, but support expenses also grew during the month. These higher profits impact profitability indices, with the ROAA growing to 2.73 percent and the ROAE to 13.16 percent.