Bank profits exceed last year’s, despite the fact that 12 entities have losses

Credit Establishments (EC) reported profits of $6.4 billion, an amount lower than that recorded in September 2023, a period in which they amounted to $6.5 billion.

Although at the end of the third quarter 12 banks continued to record losses, in total, profits were already higher than the same period in 2023. Disaggregating by type of entity, banks accumulated profits of $6.3 trillion compared to $6.15 trillion from 2023, financial corporations $349,500 million and financial cooperatives $50,000 million; For their part, financing companies reported losses of $318.7 billion.

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In September 2024, the gross financial margin of the ECs was made up of 51.1% of the net interest margin, 27.7% of the valuation and investment income and 17.6% of commissions and financial services. The Return on Assets (ROA) of the ECs stood at 0.83%, compared to 0.87% in the same period of 2023.

Except for Companies Specialized in Electronic Deposits and Payments (Sedpe), the other industries reported positive profits in September. The profits of the insurers reached $3.4 billion, followed by the Special Official Institutions (IOE) with $2.8 billion, the Pension Fund Administrators (AFP) with $1.1 billion, the trust companies with $677.8 billion, the suppliers infrastructure with $416.6 billion and securities intermediaries with $229.2 billion. In contrast, Sedpe profits decreased by $2.9 billion.

Trustors of businesses managed by trust companies reported returns so far this year of $17 billion, which represents an increase of $2.8 billion compared to what was reported the previous month. Investors in the 218 Collective Investment Funds (FIC) managed by trust companies and Stock Exchange Commission Companies (SCBV) reported returns of $9.8 billion.

Investors in the 112 Private Capital Funds (FCP) managed by trust companies and securities intermediaries recorded returns of $2.5 trillion.

The 19,197,286 members of the mandatory pension funds obtained $82.2 billion in returns in the last 12 months. These additional resources in their individual savings accounts were generated by the management of the administrators’ investments, between September 2023 and September 2024.

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Investments by supervised entities with their own and third-party resources in the capital market reached $1,415 billion, this represents 87.6% of GDP. The largest proportion corresponds to resources managed by third parties with $820 billion, which is equivalent to 57.9% of total investments.

The annual increase in investments was $276.3 billion, driven mainly by the higher balance of treasury securities and equity instruments of foreign issuers, which increased by $110.3 billion and $57 billion, respectively.

In September, EC deposits and demands registered a balance of $695 billion, with a nominal annual variation of 6.7% and a real one of 0.8%. By type of deposit, a month-on-month increase of $975.1 billion was reported in checking account balances, and a decrease of $5.9 trillion in savings account balances with a real annual variation of negative 6.4% and positive of 3.3%, respectively. The balance of savings accounts closed the month with $298 billion, Term Deposit Certificates (CDT) with $309 billion and checking accounts with $72.1 billion.

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During the month, CDTs showed dynamic growth. In September, a year-on-year increase of $18.7 trillion was observed in its nominal balance, which represents a real growth of 0.6%. The balance of CDTs with a maturity of more than one year reached $166 billion, of which $104 billion corresponded to deposits with a term of more than 18 months, equivalent to 33.8% of the total CDTs.

The gross balance of the portfolio amounted to $695 billion and the depth indicator stood at 43% of GDP. In accordance with the credit cycle, the portfolio completes 18 months with negative real annual variations, with a record in September of -4.1% in the gross balance.