During the first quarter of the year In progress, there was a clear improvement in the delinquency rate of multiple banks, which stood at less than one percent at the end of the month of Marchindicative of the good behavior of users in the sector in relation to their credit obligations.
This was reported by the Association of Multiple Banks of the Dominican Republic (ABA)by disclosing some of the main indicators of the sector, among which he highlighted that the level of delinquency stood at 0.99% in March of this year, lower than the 1.87% registered at the end of the first quarter of 2021.
The ABA highlighted that another indicator that reveals the improvement in the performance of clients in the first three months of the year in relation to their bank commitments is the past due portfolio, that is, the amount of loans that are in arrears. In this regard, he explained that this portfolio was reduced by RD$3 billiongoing from RD$15.2 billion in December 2021 to RD$12.2 million in March 2022.
The union explained that, in the case of credit portfolio provisions of multiple banks, it was recorded an increase of 321 million during the first quarter of 2022, reaching RD$59,464 million as of March. He pointed out that this led to presenting an index of coverage of provisions on overdue portfolio of 4.86 as of March 2022greater than that shown in March and December of the previous year.
He explained that these results reflect the efforts of multiple banks to maintain a good coverage of provisions on overdue portfolio, since said indicator means that for each peso in overdue or delinquent portfolio there are RD$4.86 of provisions.
Gross credit portfolio of the banking sector
The Association of Multiple Banks of the Dominican Republic highlighted that the gross credit portfolio of multiple banks presented an increase of RD$28,061 million, representing an increase of 2.32%, during the first three months of the year, according to statistics from the Superintendence of Banks of the Dominican Republic.
In this sense, he stated that said portfolio went from RD$1 billion 207,783 million in December 2021 to RD$1 billion 235,845 million in December 2022. According to the banking union, this growth was due to the increase in credit to the private sector of RD$31.3 billion, that is, 2.68% growth during the quarter.