Loans in the banking system fell by 2.41 percent over the past year. Commercial loans, which declined by 5.01 percent, are the main reason behind this result, though their deceleration was less marked than the one recorded in September, per Graph 1. The consumer portfolio contracted by 1.72, while the housing portfolio increased by 2.38 percent in that span.
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, all indices increased in October. The loan-loss provisions index grew from 2.53 to 2.55 percent after higher coefficients in the consumer and loan portfolios, while both the arrears ratio of 90 days or more (up to 2.07 percent from 2.02 percent in September) and the impaired portfolio ratio (5.48 percent versus 5.4 percent last month) did so because of increased coefficients across all portfolios.
These indices also show a persistent upward trajectory, with increases at the margins in the provisions index of the consumer and commercial portfolios, and the impaired portfolio and arrears coefficients of all three portfolios. All credit risk indices, both general and by portfolio, are higher than the ones recorded 12 months ago.
Monthly profits for October amounted to CLP 377,652 million (USD 415 million), increasing by 20.36 percent versus September but also decreasing by 26.43 percent versus the same month last year. Accordingly, the return on average equity was 15.21 percent and the return on average assets 1.11 percent. Both figures were lower than the ones posted last month and in October 2022.
Supervised Cooperatives
Loans in savings and credit cooperatives supervised by the CMF expanded by 13.14 percent over 12 months. The consumer portfolio, representing 71.72 percent of these loans, is the main reason behind these results after an 11.57-percent growth during September. The housing and commercial portfolios increased by 19.87 and 6.02 percent, respectively. The overall figure considers the inorganic growth of the consumer portfolio resulting from a portfolio purchase made by a cooperative in December 2022. Excluding said effect, loans would have grown by 12.22 percent during September, as Graph 2 shows:
Graph 2: Total loans and loans by portfolio granted by savings and credit cooperatives
(Real annual variation expressed in percentage)
Purple: Total loans. Dotted Purple: Total loans without considering portfolio purchase. Red: Commercial loans. Blue: Consumer loans. Green: Housing loans.
Regarding credit risk, all indices declined during the month. The provisions index fell to 3.73 percent after similar trends across all portfolios. The arrears ratio of 90 days or more was 2.57 percent after a contraction in the consumer portfolio, and the impaired portfolio ratio dropped to 7.66 because of the housing and consumer portfolios.
All indices increased versus October 2022, as they did in most portfolios. The only exceptions were the provisioning index and impaired portfolio ratio for housing loans, which declined in that span.
Monthly profits for October reached CLP 13,010 million (USD 14 million), declining by 41.7 percent compared to 12 months ago but increasing by 125.43 percent versus September 2023. Accordingly, the return on average equity was 11.29 percent and the return on average assets 2.64 percent. Both figures were lower than the ones posted last month and in October 2022.
Links to Relevant Documents
- Report on Performance of the Banking System and Cooperatives - October 2023
- Monthly Report on Financial Information of the Banking System - October 2023
- Report on Derivative and Non-Derivative Instruments of the Banking System - October 2023
- Arrears Ratio of 90 Days or More in the Banking System - October 2023
- Report on the Impaired Portfolio of the Banking System - October 2023
- Assets and Liabilities of the Chilean Banking System Abroad - October 2023
- Balance Sheets and Statements of Banks (in plain text format) - October 2023
- Financial Report of Savings and Credit Cooperatives - October 2023
