RIO DE JANEIRO, BRAZIL – The Financial Market Commission (CMF) reported this Friday the banking system results at the end of 2021. In operational terms, the industry said that during the year, it earned US$4.501 billion, growing by 189.07% with respect to 2020.
The regulator specified that this significant variation was due to the lower comparison base of December 2020, mainly due to the recognition of the impairment in results of part of the goodwill and other intangible assets made by Itaú Corpbanca in June 2020.
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Therefore, it argued that the accumulated result would have expanded by 78.96%, measured in 12 months without considering this adjustment.
Meanwhile, in December, the banks reported monthly profits of US$377 million. This figure represented a decrease of 30.32% with respect to November, mainly explained by a lower net interest income and net trading income accompanied by higher support costs and taxes.
Two weeks ago, the country’s main banks reported their preliminary results as of December, inaugurating the local corporate results season, and reported record figures.
Banco de Chile reported that in 2021 it had profits of Ch$792.922 billion, an increase of 71.2% over 2020. Banco Santander said that it earned Ch$774.959 billion, almost 50% over 2020. Bci had profits of Ch$520.321 billion in 2021, 63.9% higher than in 2020. At the same time, Itaú Corpbanca left the red numbers and had earnings of Ch$277.806 billion.
LENDING ACTIVITY
Regarding credit activity, the banking system’s loans and advances grew by 4.14% in 12 months, higher than the increase recorded the previous month, which was 2.00%, and the 0.40% drop in December 2020.
The CMF indicated that the increase in the three portfolios explained the higher activity of the banking system.
It highlighted the recovery in commercial and consumer loans activity, with increases of 3.23% and 0.62% in 12 months, breaking this month the negative trajectory observed since the consecutive falls since January 2021 and March 2020, respectively.
The regulator stated that “the trajectory of commercial loans was due to a recovery of commercial loans and growth of foreign trade loans and a higher exchange rate. In the consumer portfolio, the increase was explained by the growth of credit card debtors and a smaller contraction in consumer installment loans”.
Meanwhile, housing loans expanded 7.08% in 12 months.
Also, the credit risk indicators of banking system loans -provisions, delinquency of 90 days or more, and impaired portfolio- experienced an improvement compared to 12 months ago.