Chile Financial Market Commission reports March 2026 bank loan growth recovery and lower profits at banks and cooperatives

The Chile Financial Market Commission published its March 2026 performance update for supervised banks and savings and credit cooperatives, showing that bank lending returned to annual growth, aggregate bank credit risk indicators declined from February, and cumulative profits fell for both sectors. In the banking system, loans reached USD 299,389 million, up 1.57 percent in real terms over 12 months, while cumulative profits were USD 1,439 million, down 9.15 percent. In cooperatives, loans totaled USD 3,843 million, up 7.72 percent, and cumulative results were USD 28 million, down 16.09 percent. For banks, the recovery reflected an improvement in the commercial portfolio, while consumer lending expanded for the 11th consecutive month and housing lending continued to grow at a slower pace than in February. The Loan-Loss Provisions Index fell to 2.57 percent, the arrears ratio of 90 days or more to 2.38 percent, and the impaired portfolio ratio to 6.04 percent. Profitability also weakened, with return on average equity at 14.52 percent and return on average assets at 1.28 percent, as lower net financial results and higher recognition of tax expenses outweighed lower operating expenses, higher net fees, and a higher interest and readjustment margin. For cooperatives, loan growth accelerated across all three portfolios, with consumer and housing loans accounting for 68.34 percent and 27.43 percent of total lending and growing by 5.35 percent and 15.05 percent respectively. The provisions index rose to 4.09 percent and the impaired portfolio ratio to 8.64 percent, while the arrears ratio of 90 days or more fell to 2.26 percent. Profitability declined to a return on average assets of 2.37 percent and a return on average equity of 11.57 percent, reflecting higher net provision expenses, lower net fees, and a lower interest margin.