Chile Financial Market Commission published its report on the performance of the banking system and savings and credit cooperatives as of August 2025, setting out updated indicators on lending activity, credit risk and profitability. For banks, lending growth accelerated on a 12-month real basis, credit risk indicators eased overall compared with the prior month, and profitability improved versus a year earlier. In the banking system, total loans reached USD 284,647 million, up 2.03% in real terms over 12 months, driven by a recovery in consumer lending; commercial loans increased for a fourth consecutive month and housing lending grew slightly. Aggregate credit risk indices fell month-on-month across portfolios except for the loan-loss provisions index for consumer loans, which increased; the loan-loss provisions index stood at 2.56% and the 90+ days arrears ratio at 2.27%, with provisions coverage rising both over the month and year-on-year. Cumulative profits were USD 580 million (6.39% real annual variation), supported by lower taxes and operating expenses and higher fee income, offsetting declines in interest and readjustment margins; return on average equity rose to 15.56% and return on average assets to 1.36%. For savings and credit cooperatives, the report notes loans fell slightly versus July 2025 and August 2024, while also presenting total loans of USD 3,511 million (6.60% real annual variation) and a consumer portfolio share of 69.38% that grew 4.74% in real terms over 12 months; the provisions index was 4.10% and the 90+ days arrears ratio 2.20%, with mixed month-on-month movements across risk indicators. Results were USD 580 million (26.39% real annual variation), reflecting higher interest margins alongside higher support expenses, with return on average equity at 13.89% and return on average assets at 2.89%.

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