Financial Stability
Report on Banks
August
2015
Published on Oct 26, 2015
Thisreport analyzes the situation of the Argentine financial system on a monthly basis.
Summary
- In August, the balance of total credit to the private sector grew 3.2%, accumulating a nominal increase of 30.6% in the last twelve
months. Loans in pesos expanded 3.3% in the month
(31.4% YoY), with greater dynamism in advances and cards. In the same period, financing to
companies increased 3.9% (28.1% YoY) while loans to families increased 1.3%
(32.5% YoY). - In August, financial institutions continued to agree on new financing through the
Credit Line for Productive Investment (LCIP). Throughout the second half of 2015, the seventh stage of the LCIP is being
developed, in which it is estimated that loans for approximately $52,000 million will be generated. From the beginning of the LCIP in mid-2012 to the end of the
first half of 2015, the gross amount of loans agreed exceeds $137,000 million. The NPL ratio for loans to the private sector decreased slightly to 1.8% in
August. This reduction was mainly explained by the segment of credit to households, whose irregularity indicator stood at 2.7%, while the non-performing loan ratio to companies did not change in magnitude and reached a level of 1.3%. The balance of the accounting forecasts was equivalent to 142.4% of the private sector portfolio in an irregular situation in the period, with all
bank groups maintaining high relative levels of forecasting. - The balance of private sector deposits in national currency grew 1% in August, with a monthly variation in demand accounts that was slightly higher than that of time deposits. Private sector deposits in foreign currency increased 0.5% in the period (in currency of
origin). For its part, in the month, public sector placements increased 1.2%. Thus, total deposits
in the financial system grew 1.2% compared to July. In year-on-year terms, private sector deposits in national currency accumulated an increase of 38.5%, driven by
time placements (43.4% YoY). Total deposits increased 32.6% YoY. - The liquidity indicator of the financial system (considering items in domestic and foreign currency) fell slightly in the month, to 21.9% of total deposits, mainly due to the decrease in availabilities in pesos. Similarly, the broad aggregate liquidity ratio (including LEBAC holdings) recorded in the period was slightly lower than in July, standing at
43.7% of deposits, a level similar to that evidenced in August 2014. - The net worth of the consolidated financial system grew 2.6% in August (30% YoY), mainly driven by earned earnings. Regulatory capital integration reached 14.5%
of total risk-weighted assets (RWAs), while Tier 1 capital integration accounted for 13.6% of RWAs. For its part, in the period, the capital position (excess of integration with respect
to the requirement) represented 91% of the regulatory requirement. All the groups of banks showed a
surplus capital position. - In August, the accounting results in terms of assets (ROA) for all financial institutions
stood at 3.7%y, registering a slight decrease compared to July. The ROA of the financial system for the accumulated of the last twelve months reached 3.5%.



