The Chile Financial Market Commission published its June 2025 performance report for supervised banks and savings and credit cooperatives, covering activity, credit risk and financial results. It shows subdued bank lending with a real year-on-year contraction driven by commercial loans, alongside improved profitability as cumulative profits increased. In the banking system, total loans were USD 288,981 million, down 0.49% in real terms over 12 months, with consumer loans growing for a second consecutive month and housing loans expanding at a slower pace than in May. Credit risk indicators were mixed, with the loan-loss provisions index at 2.56% and the 90-days-or-more arrears ratio at 2.31%, while provisions coverage declined versus both May and a year earlier. Cumulative profits rose to USD 482 million, up 9.07% in real terms over 12 months, supported by lower taxes, loan losses and operating expenses offsetting weaker interest margins and readjustments to net financial results; return on average equity was 15.75% and return on average assets was 1.36%. For savings and credit cooperatives, total loans were USD 3,564 million, up 6.5% in real terms over 12 months, with the consumer portfolio (69.56% of operations) growing 4.91%; the provisions index was 4.03% and the 90-days-or-more arrears ratio was 2.23%. Profits were USD 13 million, up 44.59% in real terms over 12 months, with return on average equity at 14.35% and return on average assets at 3.01%.

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