The Chile Financial Market Commission released its February 2025 performance reports for the banking system and CMF-supervised savings and credit cooperatives. Across banks, total loans declined 1.87% over 12 months while headline credit risk indicators eased versus the prior month and profitability improved. In the banking system, the annual contraction reflected a 3.96% fall in commercial lending and a 0.76% decline in consumer loans, partially offset by 1.28% growth in housing loans. Month on month, credit risk measures fell, with the loan-loss provisions index (LLPI) edging down from 2.60% to 2.59%, the 90-days-or-more arrears ratio (AR90) from 2.36% to 2.33%, and the impaired portfolio ratio (IPR) from 6.19% to 6.13%, even as all three indices were higher than 12 months earlier. February profits reached CLP 557,964 million (USD 592 million), up 77.33% versus January and 16.67% year on year, with return on average equity at 15.53% and return on average assets at 1.30%. For supervised cooperatives, loans increased 6.71% over 12 months, driven mainly by the consumer portfolio (70.05% of loans) growing 5.02%, alongside 12.14% growth in housing and 4.06% in commercial. All three cooperative credit risk indices rose during the month, with the Provisions Index at 3.96%, AR90 at 2.35% and IPR at 7.83%; versus 12 months ago, the Provisions Index was higher while AR90 and IPR were lower. February profits were CLP 12,957 million (USD 14 million), up 334.81% from January and 83.75% from a year earlier, with ROE at 13.15% and return on average assets (RAA) at 2.81%.
Chile Financial Market Commission 2025-03-31
Chile Financial Market Commission publishes February indicators showing a 1.87% annual fall in bank loans and higher monthly profits
The Chile Financial Market Commission's February 2025 reports show a 1.87% annual decline in total loans across banks, with improved profitability and eased credit risk indicators. In contrast, supervised savings and credit cooperatives saw a 6.71% loan increase, driven by consumer and housing portfolios, alongside rising credit risk indices. February profits for banks and cooperatives rose significantly, with banks achieving a 77.33% increase and cooperatives a 334.81% surge.