Chile Financial Market Commission reports 0.61% annual fall in bank lending and 7.33% rise in supervised cooperative loans

The Chile Financial Market Commission published its latest performance update for the banking system and supervised savings and credit cooperatives, showing a 0.61% year-on-year contraction in banking-system loans driven by declines in commercial and consumer lending, alongside slightly higher credit risk indicators and weaker monthly profitability. In contrast, loans at supervised cooperatives expanded by 7.33% over 12 months, led by consumer credit. For banks, commercial loans fell 2.15% over 12 months and consumer loans declined 0.33%. Credit risk metrics moved up on the month, with the loan-loss provisions index rising to 2.6% from 2.49% and the 90+ days arrears ratio edging up to 2.36% from 2.35%, while the impaired portfolio ratio was unchanged at 6.19%; all credit risk indices were higher than 12 months earlier. Monthly profits for January were CLP 311,579 million (USD 315 million), down 17.45% versus the prior month and down 9.16% versus the same month a year earlier, with return on average equity at 15.1% and return on average assets at 1.25%. For supervised cooperatives, the consumer portfolio represented 70.21% of loans and grew 5.89% over 12 months, while housing and commercial portfolios increased 12.29% and 3.56%, respectively; the provisions index rose to 3.94%, the 90+ days arrears ratio to 2.2%, and the impaired portfolio ratio to 7.75%. Cooperative monthly profits for January were CLP 2,955 million (USD 3 million), down 69.99% month on month but up 24.19% year on year, with return on average equity at 12.43% and return on average assets at 2.66%.