The Association of Multiple Banks of the Dominican Republic (ABA) reported today that during the first quarter of the current year there was an “obvious improvement” in the delinquency rate of multiple banks, which stood at less than 1% at the end of March, which it considers as an “indicative of the good behavior of the users of the sector in relation to their credit obligations”.
The ABA highlighted in a press release that the delinquency level 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 overdue portfolio, that is, the amount of loans that are in arrears. In this regard, he explained that this portfolio was reduced by 3 billion pesos, going from 15.2 billion pesos in December 2021 to 12.2 million pesos in March 2022.
The union detailed that, in the case of credit portfolio provisions of multiple banks, an increase of 321 million was registered during the first quarter of 2022, reaching 59,464 million pesos as of March. He pointed out that this led to presenting a coverage index of provisions on overdue portfolio of 4.86 as of March 2022, higher than that shown in March and December of the previous year.
He explained that these results “reflect the effort of multiple banks to maintain a good coverage of provisions on overdue portfolio, since this indicator means that for each peso in past due or delinquent portfolio there are 4.86 pesos 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 showed an increase of 28,061 million pesos, 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 explained that said portfolio went from 1 billion 207,783 million pesos in December 2021 to 1 billion 235,845 million pesos in December 2022.
According to the banking union, this growth was due to the increase in credit to the private sector of 31.3 billion pesos, that is, 2.68% growth during the quarter.
