February 26, 2024
A ScotiaBank Colpatria department in Bogota (Colombia).Jeff Greenberg (Getty Photographs)

Financial institution solvency has not been resistant to the cooling of the Colombian financial system. In a context of a number of international uncertainties, financial institution income fell by 38.17% yearly in the course of the first quarter of this yr, in accordance with a report by the Monetary Superintendence. The regulatory physique’s evaluation displays that the 2 key indicators behind the modest outcomes have been the delicate progress of recent loans, weighed down by the rise in rates of interest, with an increase of barely 0.11% per yr, and the collapse of Lenders’ income, which fell 37%.

Nevertheless, it’s not all unhealthy information. The income of the monetary system as an entire, which along with banks contains belief firms, credit score establishments and pension and severance fund directors, shot up 1,202% in the identical interval, reaching greater than 45 trillion pesos. What’s the distinction resulting from? Analysts level out that the slowdown in progress, which a number of projections place between 0.5% and simply over 1% by the top of the yr, impacts the dynamics of the banking portfolio before different companies within the sector, nevertheless it might deliver different penalties in the midst of the yr.

For now, the banks with the largest holes of their steadiness sheets have been Banco Common, with losses of 91,085 million pesos; ScotiaBank-Colpatria, with -80,549 million and Banco Falabella with -39,005 million. “In occasions of slowdown, the banks place much less, make better monetary investments and provisions and seize much less,” explains economist Daniel Castellanos, president of Fundacion Impacta, “with these measures they shield themselves, however income cease rising on the similar price as earlier than ”.

The so-called gross portfolio of the Colombian monetary system ―the mass of all the cash lent― grew a really modest 0.11% yearly, reaching near 674 trillion pesos. Consumption, for its half, had an actual annual variation of -1.3% in March, the bottom progress price within the final 5 years. Financial institution delinquency, for its half, continues to develop month by month and in its annual habits. Within the shopper credit score modality, for instance, six months of optimistic annual variations have already been accomplished, all the time in accordance with the Superfinanciera report.

The financial researcher of Skandia Catalina Tobon declared on the radio station of the Universidad Javeriana: “The symptoms by way of solvency of return on property proceed to be comparatively favorable and don’t generate necessary alerts that might elevate considerations concerning the sustainability of the monetary system in Colombia” . Daniel Castellanos shares the evaluation of the information, however qualifies that there are two “developments which might be starting to be worrying”: “The primary is that portfolio progress is not dynamic.” And secondly, he recollects that, regardless of the nice normal income, a slight lower is already detected: “It’s not a sector resistant to the financial evolution that the nation is experiencing and issues should not going in addition to earlier than.”

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