Chile's Financial Market Commission published its performance report on supervised banks and savings and credit cooperatives as of December 2025. The report shows total bank lending declining in real terms over 12 months, driven by weaker commercial lending, while consumer and housing portfolios continued to expand, alongside a month-on-month increase in key credit risk ratios. Savings and credit cooperatives posted faster real loan growth than in November, led by consumer credit, but also saw higher provisioning and arrears indicators and weaker profitability versus the prior month. In the banking system, total loans stood at USD 301,482 million, down 1.03% in real terms year on year, with the arrears ratio of 90 days or more rising to 2.42% (from 2.37% in November 2025) and the impaired portfolio ratio increasing to 6.1% (from 6.02%), while the loan-loss provisions index edged down to 2.58% (from 2.59%). Cumulative profits reached USD 459 million, up 2.56% in real terms over 12 months, attributed to lower tax expenses linked to deferred tax accounting adjustments and higher net financial results and fee income offsetting weaker interest and readjustment margins; return on average assets increased to 1.32% while return on average equity fell to 15.02%. For savings and credit cooperatives, loans totaled USD 3,852 million, up 7.27% in real terms year on year, with the consumer portfolio (68.76% of operations) growing 5.19%; the provisions index rose to 4.07% (from 4.04%), AR90 to 2.2% (from 2.14%), and the impaired portfolio ratio to 8.18% (from 7.95%).

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