economy and politics

Provisions are generating a drop in bank profits

Security recommendations for bank users at Easter

The increase in interest and inflation have begun to affect the quality of the portfolio, especially that of consumption and the Governmentin anticipation of further deterioration, ordered additional provisions to be made, that is to say, to constitute a kind of mattress, to prevent difficulties.

But this figure, which is configured as an expense for the Credit Establishments (EC)especially banks, generates pressure on the result.

(U.S. bank deposits fall due to banking crisis).

According to Financial Superintendent, Jorge Castañothe additional general, regulatory and voluntary provisions will help absorb the greater deterioration expected in the consumer portfolio (portfolio)”.

In a presentation in recent days, the official said that of the $1.06 trillion of additional general provisions (PGA), credit institutions still maintain $802,000 million at the cutoff of last February.

(‘I am absolutely sure that this month inflation is going down’).

On the other hand, the additional provisions for consumption plus PGA were $1.67 trillion as of February, which added to other buffers reach $2.8 trillion in total additional provisions, said the official.

The CIs reached profits of $1.8 trillion as of February, that is, 30% less than a year ago When the figure reached $2.6 trillion and disaggregating by type of entity, the banks reported accumulated profits for $1.4 trillion (35% lower than those of the same month of 2022 when they totaled $2.2 trillion), the financial corporations $354.800 millionfinancing companies losses for $29,000 million and cooperatives of a financial nature profits of $12.800 million.

(A. Latina seen from the meetings in DC, time for brave).

The preventive work of the financial super It shows a system that, according to the numbers, is prepared for difficulties.

Thus, the default coverage indicator, calculated as the relationship between the balance of provisions and the overdue portfolio, stood at 144.9% (including PGA). According to the entity, this means that for each portfolio peso that is more than 30 days past due, the ECs have close to $1.5 to cover it.

(Colombia ‘cracks’ as a negotiating environment, according to a study).

And despite the slower rate of portfolio placement, it can be seen that indicators such as the CI Net Stable Funding Ratio it is above the regulatory minimums, so the funding needs are covered and the total solvency was 18.1%, higher by 9.1 percentage points with respect to the minimum required (9%) and the basic solvency, made up of the capital with the greatest capacity to absorb losses, reached 14.4%, exceeding the regulatory minimum of 4.5% by 9.87 percentage points

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