Despite the fact that 12 continue to lose, the global profit of the banks rose 7.81% as of October

In October, Credit Establishments (EC) reported profits of $7 billion, an amount higher than that recorded at the end of the same month of 2023, a period in which these amounted to $6.7 billion.

When disaggregated by type of entity, banks accumulated profits of $6.9 trillion, a result that is 7.81% higher at the same period last year, according to figures from the Financial Superintendence.

Read: ‘Superfinanciera must project itself into the future, in a digital environment’

For their part, financial corporations earned $369.2 billion and financial cooperatives $60.9 billion, while financing companies reported losses of $343.6 billion.

According to the Superfinanciera, in October 2024, the gross financial margin of the ECs was made up of 50.9% of the net interest margin, 25.7% of the valuation and investment income and 17.6% of the
commissions and financial services. The Return on Assets (ROA) of the ECs stood at 0.8%, the same record as October 2023.

Except for Companies Specialized in Electronic Deposits and Payments (Sedpe), the other industries reported profits in October. The profits of the Special Official Institutions (IOE) reached $3.8 billion, followed by the insurance companies, with $3.6 billion, the Pension Fund Administrators (AFP) with $1.2 billion, the trust companies with $739.8 billion, the infrastructure providers with $470.5 billion and securities intermediaries with $254.3 billion. In contrast, the Sedpe recorded losses of $1.1 billion.

Bank situation

Bancolombia was the bank with the best accumulated result as of October, with $4.64 billion, followed by Banco de Bogotá, with a positive result of $1 billion, next Davivienda with $576,877 million and then Citibank with $576,842 million.

Next appears the Bank of the West, with profits of $428,536 million, Banco Agrario, with profits of $331,446 million and Banco GNB Sudameris with profits of $210,956 million.

The highest losses corresponded to BBVA Colombia with $265,154 million and Bancamía with $220,679 million, according to the Superfinanciera report.

The portfolio remains depressed

The gross balance of the portfolio amounted to $699 billion and the depth indicator stood at 42.3% of GDP.

In accordance with the credit cycle, the portfolio completes 19 months with negative real annual variations, with a record in October of -3.36% in the gross balance, which reflects the real annual variation negative of the consumption and commercial modalities, which could not be neutralized by the positive variation of the microcredit and housing modalities; the correction of the effect of inflation to the extent that the nominal variation rate of the gross portfolio was 1.9%; and the dynamics of write-offs that in October totaled $1.4b, mainly influenced by the consumption and commercial modalities with a participation of 79% and 13.3%, respectively.

Portfolio purchase.

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In September, the commercial portfolio recorded 17 consecutive months with negative real annual variation, in line with the macroeconomic environment. In month-on-month terms, the balance of the commercial portfolio increased $2.3 trillion, due to the positive contribution of segments such as microenterprise ($2.7 trillion) and foreign currency ($2.2 trillion). The approval rate of this portfolio reached 89% of the number of applications and $27.9 billion was disbursed.

When disaggregating the variation by product, positive records are observed in microenterprises with a real annual variation of 10.9%; and official or government 6.2%; while, SME, business and financial and institutional products recorded negative data of 11.1%, 9.2%, 7.1%, respectively.

The consumer portfolio registered a negative nominal variation of 4.6% and a real annual variation, also negative of 9.5% in October. Of this rate, 64% is explained by the free investment product, which accumulates a real annual variation of -18.5%.

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