Loans in the banking system slow down the decline posted last month with a contraction of 1.07 percent over 12 months. This is due to a lower decline in the commercial portfolio. Meanwhile, consumer loans grow for the 10th month in a row and housing loans grow slightly, albeit at a lower rate than that of January (Graph 1).

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 show mixed behavior as the Loan-Loss Provisions Index moves to 2.61 percent (2.6 percent in January) while the Arrears Ratio of 90 Days or More (AR90) falls to 2.42 percent (2.44 percent in January) and the Impaired Portfolio Ratio (IPR) to 6.14 percent (6.17 percent in February).

Indices mostly grow by portfolio except in the following cases: the IPR declines in commercial loans and shows no variation in consumer loans, while the AR90 falls in the housing portfolio.

This mixed behavior extends to indices when compared to 12 months ago as all housing indices grow; most consumer indices increase; and most commercial indices decrease (see Page 4 of the Performance Report).

Provisions coverage increases during the month but decreases verses 12 months ago..

Cumulative profits fell because of lower interest and readjustment margins combined with broader acknowledgment of tax expenses after accounting adjustments that move part of said taxes to future periods (deferred taxes) and despite lower operational expenses and better net financial results. Profitability indices, however, display uneven behavior compared to a year ago: the return on average equity (ROAE) falls to 14.81 percent but the return on average assets (ROAA) grows to 1.31 percent.

As for cooperatives, loans grow at a higher rate than that of both January and 12 months ago. This is due to increased dynamism in the consumer and housing portfolios, which represent 68.51 and 27.23 percent, respectively, of total loans. These portfolios expand by 5.07 and 14.76 percent, respectively (Graph 2).

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.

All credit risk indices grow compared to January. The Provisions Index (PI) moves to 4.08 percent (4.06 percent in January); the AR90 reaches 2.35 percent (2.23 percent in January); and the IPR increases to 8.45 percent (8.25 percent in January).

Portfolios show uneven behavior. All consumer indices grow, as well as most housing indices except the PI, which shows no variation. Commercial indices fall except the AR90, which rises (see Page 7 of the Performance Report).

Cumulative results posted in February decline due to increased net provision expenses and lower net fees. However, financial operation results were better during the month. In line with these results, profitability indices fall compared to 12 months ago as the ROAA declines to 2.41 percent and the ROAE to 11.77 percent.