At the end of February the dynamics of provisions reflected the downward trend of the balance at risk among Colombian banksaccording to the Financial Superintendence.
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This is because these resources, which credit institutions allocate preventively to protect the asset against the possibility that the risk of default associated with a loan materializesclosed the second month of the year with a real annual contraction of 13.7%, with a balance of $37.4 billion.
Of this total, $6.6 trillion corresponded to category A (the one with the lowest risk). Additional general provisions, some $1.9 trillion, recorded a monthly reduction of $142.8 billion. For its part, the provisions to recognize uncollected accrued interest accumulated $233,600 million. Additionally, additional provisions due to internal policy of credit institutions totaled $1.7 trillion, that is, $50.6 billion more than in January.
According to the Superfinanciera, at the end of February the results of the financial system continue to show a mixed scene.
(Banco de la República expects consumption to slow down).
Credit institutions (banks, financial corporations, financing companies and financial cooperatives) closed the month with results of $2.6 trillion, driven mainly by interest income (banks reported accumulated profits of $2.3 trillion, financial corporations $339,800). million, financing companies $23.7 billion and financial cooperatives $15.5 billion.
For their part, the Special Official Institutions registered profits of $159.2 billion, followed by trust companies with $71.7 billion, securities intermediaries with $35.2 billion and the insurance industry (insurance entities, capitalization companies and insurance brokers) with $2.3 billion.
In contrast, pension and severance fund management companies recorded negative results of $23.2 billion. Returns on third-party managed resources were negative at $8.8 trillion, a reduction of $6.6 trillion compared to February 2021 ($2.2 trillion), mainly due to the behavior of debt securities.
INVESTMENTS
In February, the behavior of the markets was marked by a increased volatility caused by the conflict between Russia and Ukraine. The above evidenced in the increase in uncertainty, the increase in the prices of raw materials and inflationary pressures at a global level.
The Financial Superintendence said in its monthly report on the sector that trustors of businesses managed by trust companies reported accumulated returns so far in 2022 of $1.6 trillion. This figure represents an increase compared to the previous year’s record of $1.3 trillion.
Investors of the 200 collective investment funds managed by the country’s trust companies, stock brokerage companies and investment management companies reported an increase in the balance of $1 trillion in the first two months of the year, mainly due to net gains on the valuation of equity instruments.
BRIEFCASE
