Chile Financial Market Commission reports banking-system lending fell 2.24 percent over 12 months as supervised cooperatives expanded 6.52 percent

The Chile Financial Market Commission published its March 2025 performance updates for the banking system and CMF-supervised savings and credit cooperatives. Banking-system loans fell 2.24 percent over 12 months, driven by declines in commercial and consumer credit, while cooperative lending grew 6.52 percent, led by consumer loans. In the banking system, commercial lending fell 4.36 percent and consumer lending 0.52 percent over 12 months, while housing loans increased 0.94 percent but continued to slow. Credit risk was broadly stable versus the prior month, with the loan-loss provisions index easing to 2.58 percent (from 2.59 percent) and the 90+ days arrears ratio to 2.31 percent (from 2.33 percent), alongside a slight rise in the impaired portfolio ratio to 6.17 percent (from 6.13 percent). March profits reached CLP 570,911 million, up 1.07 percent month on month and 17.16 percent year on year, with return on average equity at 15.77 percent and return on average assets at 1.33 percent. For supervised cooperatives, consumer loans represented 69.87 percent of lending and rose 4.80 percent over 12 months, alongside increases in housing (12.08 percent) and commercial loans (3.49 percent); during the month, the provisions index rose to 3.97 percent, the 90+ days arrears ratio to 2.37 percent and the impaired portfolio ratio to 7.90 percent. Cooperative profits for March were CLP 14,109 million, up 7.59 percent from February and 70.56 percent year on year, with return on average equity at 13.71 percent and return on average assets (RAA) at 2.92 percent.