Chile Financial Market Commission reports 0.78 percent annual growth in bank lending as commercial credit returns to expansion

The Chile Financial Market Commission published its December 2024 overview of the banking system and supervised savings and credit cooperatives, showing total bank loans rising 0.78 percent over 12 months, driven by a 0.1 percent increase in commercial lending and a smaller 0.28 percent fall in consumer lending. Credit risk indicators for banks were mixed month on month: the 90+ days arrears ratio (AR90) rose to 2.35 percent, while the impaired portfolio ratio (IPR) declined to 6.19 percent and the loan-loss provisions index (LLPI) fell to 2.49 percent. Compared with 12 months earlier, all credit risk indices except the LLPI increased, with housing and commercial indices up and consumer indices down. December profits for banks were CLP 398,128 million (USD 401 million), down 17.24 percent from the prior month but up 5.82 percent year on year, with return on average equity at 15.25 percent and return on average assets at 1.26 percent. For CMF-supervised cooperatives, total loans grew 7.78 percent over 12 months, led by the consumer portfolio (70.12 percent of loans) growing 6.19 percent, alongside commercial and housing increases of 5.36 percent and 12.92 percent. All cooperative credit risk indices increased during the month, with the provisions index at 3.91 percent, AR90 at 2.05 percent, and IPR at 7.7 percent; December profits were CLP 10,266 million (USD 10 million), down 31.68 percent month on month and up 9.1 percent year on year.