Report on Non-Financial Credit Providers, June 2024

Number of PNFCs | The number of non-financial credit providers (proveedores no financieros de crédito, PNFCs) reached 469 in March 2024, 12 more than in August 2023. A total of 401 companies were registered in the Registry of Other Non-Financial Credit Providers (otros proveedores no financieros de crédito, OPNFC) and 113 in the Registry of Non-Financial Credit and/or Purchase Card Issuing Companies (emisoras de tarjetas de crédito y/o compra no bancarias, ETCNB).

Stock of financing | The stock of financing reached ARS2.1 trillion in December 2023, with a 22% contraction at constant values against June 2023. All groups reduced their stock in real terms in the second half of the year, except leasing & factoring, which rose 7%. Other providers was the group with the largest reduction (8 p.p. decrease), followed by fintechs (6 p.p.), sale of household appliances (4 p.p.), and other chain stores and cooperatives and mutuals (2 p.p. each). The stock of personal loans exhibited a steeper fall than credit cards in the second half of 2023 (-36% and -13% at constant prices, respectively).

Number of credit lines | The total number of credit lines fell 2% over the six-month period and reached ARS15 million at the end of 2023. This trend contrasts with the sustained growth observed from the fourth quarter of 2021 to August 2023. The number of personal loans did not exhibit significant changes in the six-month period, while the number of credit card lines fell 3%. Fintechs were the reason why personal loans remained unchanged. The average stock per credit line by the end of the year was ARS74,000 for personal loans and ARS228,000 for credit card lines, 36% and 10% less in real terms against June 2023, respectively.

Interest rate on personal loans and credit cards | The weighted average nominal annual interest rate (NAR) on personal loans reached 213% at the end of 2023, up 42 p.p. against June 2023, while the weighted average NAR on credit cards was 170% in December 2023, up 69 p.p. over the period.

Non-performance ratio | The non-performance ratio of PNFC loans fell 1.7 p.p. in the second half of the year, reaching a historical low of 10.6%. The non-performance ratio of credit card assistance decreased 2 p.p., reaching 3.6% in December 2023. However, the non-performance ratio of personal loans increased 2.4 p.p. and amounted to 24% at the end of 2023.

Number of borrowers | The total number of PNFC borrowers was 10.7 million in December 2023, posting an increase of 0.6% against June 2023 and 4.8% y.o.y. The fintech group was the only one with an increase in the number of borrowers in the period, with almost 5.4 million customers at the end of the year, up 6% against June 2023, and up 19% compared to the last month of 2022.

Debt of PNFCs’ Customers with FIs

Number of borrowers and stock of financing granted to natural persons (NPs) | During the second half of 2023, there was a 4% growth in the number of NP borrowers that are shared by PNFCs and financial institutions (FIs), and there was a 22% reduction in the balances owed to the financial system in real terms.

Financing by type of credit line | The total stock of personal loans to NPs posted a decrease of 32% in real terms, while that of credit cards fell by 17% in the six-month period. The number of personal loans showed a six-monthly increase of almost 13%, while that of credit cards remained unchanged.

Non-performance of borrowers shared with FIs | The non-performance ratio of NP borrowers shared with FIs showed a decrease from 5.7% to 4.9% in the second half of 2023, reversing the increase observed in the previous period. PNFC Funding from FIs and the Capital Market

PNFC funding from the financial system | Financing granted by FIs to PNFCs reached ARS336,000 million in December 2023, posting a fall of 15% in real terms in the six-month period and 25% in the year. Only other chain stores increased their financing in both a half-yearly and an annual comparison.

Non-performance of PNFCs with FIs | No significant changes were recorded in the non-performance ratio of PNFCs with FIs during the second half of 2023, which remained at around 1% as of December 2023.

PNFC funding in the capital market | In the second half of 2023, PNFCs established financial trusts for ARS193,000 million (at prices of December 2023)—a six-monthly fall of 29% in real terms. Fintechs and, to a lesser extent, sale of household appliances increased their share in 2023 compared to 2022.

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Jueves 6 de junio de 2024