• Loans in the banking system continue to decelerate with a variation of 5.76 percent in august, below last month's rate. Consumer loans kept declining with a 11.76 percent drop over 12 months.
• In terms of credit risk, the indices of provisions and arrears of 90 days or more also fell during the month, with the latter declining by 1.84 percent.

September 29, 2020 - Loans in the banking system increased by 5.76 percent in 12 months, a lower rate compared to both last month (7.21 percent) and last year (7.76 percent).

Once again commercial loans boosted activity with a rise of 10.62 percent, less than the 11.99 percent recorded in July. The housing portfolio expanded by 6.08 percent, also lower than the previous month (6.84 percent). Meanwhile, the consumer portfolio fell for the sixth consecutive month with a decline of 11.76 percent over 12 months. The increase in loans is positively impacted by the granting of FOGAPE Covid-19 guaranteed loans. Excluding said operations, loans in the banking system would have grown only by 1.47 percent and commercial loans by 3.03 percent in 12 months.

In terms of credit risk, the arrears ratio of 90 days or more fell from 1.99 to 1.84 percent, mainly due to the drop of the corresponding portfolio by 7.71 percent during August. The loan-loss provisions index also dropped from 2.67 to 2.63 percent, while the impaired portfolio increased again from 5.55 to 5.57 percent.

Monthly profits for August reached 185,074 million Chilean pesos (USD 238MM), and cumulative profits summed CLP 614,028 million (USD 787MM). This represents a decrease of 67.95 percent compared to 12 months ago. Accordingly, the return on average equity fell to 6.25 percent and the return on average assets registered 0.45 percent.

Supervised Cooperatives

Loans by savings and credit cooperatives supervised by the CMF rose by 0.80 percent over 12 months, below the 1.76 percent recorded in July. A lower growth rate of 0.40 percent in the consumer portfolio (1.60 percent in the preceding month) explains this variation. The increase in loans is positively impacted by the granting of FOGAPE Covid-19 guaranteed loans. Excluding said operations, the variation of loans over 12 months would have decreased from 0.80 to 0.70 percent.

Regarding credit risk, all three indices fell compared to last month. The provisions index reached 3.95 percent, the arrears ratio of 90 days or more recorded 2.64 percent, and the impaired portfolio registered 7.79 percent.

Monthly profits for August reached CLP 6,209 million (USD 8MM), increasing 13.12 percent compared to July but falling 23.93 percent over 12 months.

Performance Report

Alongside this month's financial information, the Performance Report includes a review of debt instruments issued by financial institutions. It indicates their main characteristics, composition, evolution over the last ten years, and distribution within these entities.

Links to Relevant Documents

• Report on the Performance of Banking System and Cooperatives - August 2020
• Monthly Report on the Financial Information of the Banking System - August 2020
• Report on Derivative and Non-Derivative Instruments of the Banking System - August 2020
• Indicator of individual default of 90 days of the Banking System - August 2020
• Report on the Non-Performing Loans of the Banking System - August 2020
• Assets and Liabilities of the Chilean Banking System Abroad - August 2020
• Balance Sheet and Statements of Banks (in plain text format) - August 2020
• Financial Report of Savings and Credit Cooperatives - August 2020