Chile: Banking profits increase almost 200% in the year and exceed US$4.1 billion

RIO DE JANEIRO, BRAZIL – The Financial Market Commission (CMF) reported a sharp increase in bank profits on Thursday.

According to the regulator, in November, the system’s profits reached CLP458,192 million (US$548 million), while the accumulated result in 2021 was CLP3,505,900 million (US$4.190 billion), a figure that evidences a growth of 197.26% in 12 months.

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“This variation is produced by the lower comparison base in November 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.

Without considering this adjustment, the accumulated result would have expanded by 76.26%, measured in 12 months”, explained the financial regulator.

The return on average equity was 15.93%, and the return on average assets was 1.10%.

In terms of loans, the CMF reported that in November, the industry’s loans grew 2% in one year, higher than the increase recorded in the previous month (1.42%) and consolidating the recovery of the global activity started the last month, after the setback observed since December 2020.

“The higher activity of the banking system was explained by the increase in housing loans, which rose 7% in 12 months (7.18% in the previous month) and by a smaller drop in consumer and commercial loans,” they indicated.

Thus, commercial loans fell at 0.19% in one year, and consumer loans decreased by 1.10% annually.

PROVISIONS

In terms of credit risk, the provisioning, delinquency rates of 90 days or more and impaired portfolio fell during the month and compared to a year ago, except for the provisioning and delinquency rates of 90 days or more for consumer loans, which rose during the month to 5.79% and 1.13%, respectively.

Thus, the ratio of provisions to loans fell in November to 2.36%, explained by the commercial and housing portfolios, which decreased to 2.67% and 0.58% in each case.

The delinquency rate of 90 days or more fell to 1.31%, as did the commercial portfolio ratio to 1.48% and the housing portfolio ratio to 1.09%.

With information from Diario Financiero

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