The Chile Financial Market Commission published its May 2025 report on the performance of supervised banks and savings and credit cooperatives, covering activity, credit risk and results. For banks, lending remained weak in real terms over 12 months, while profitability improved; cooperatives showed positive loan growth and a sharp increase in profits alongside mixed movements in risk indicators. In the banking system, total loans stood at USD 288,151 million with a real annual decrease of 0.05%, driven by the commercial portfolio, while consumer lending grew for the first time in nearly two and a half years and housing loans also increased. Key risk metrics included a loan-loss provisions index of 2.55% and a 90+ days arrears ratio of 2.29%; provisions coverage increased versus a year earlier but fell compared with the previous month. Cumulative profits reached USD 509 million, up 9.99% in real annual terms, supported by lower taxes and operating expenses despite weaker interest margins and net financial results, with return on average equity at 15.74% and return on average assets at 1.35%. For savings and credit cooperatives, total loans were USD 3,526 million, up 6.38% in real annual terms, with the consumer portfolio representing 69.61% of operations and growing 4.70% over 12 months. The provisions index was 4% and the 90+ days arrears ratio 2.33%, with most consumer portfolio risk indices rising versus April while commercial and housing indices declined and the impaired portfolio ratio fell. Profits increased to USD 10 million, up 46.2% in real annual terms, alongside higher interest margins and higher support expenses, lifting return on average equity to 14.08% and return on average assets to 2.97%.

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