Executive summary
Favored by the improvement in the international situation, the Argentine economy began to show some signs of recovery during the third quarter of the year. Industrial activity reversed its downward trend and it is estimated that investment would have registered a much smaller fall than that recorded in previous quarters.
The domestic capital market was characterized by a low level of business, in an environment of both local and international uncertainty, although at the end of the quarter the indicators partially recovered.
The monetary variables showed a favorable behavior, which was reflected in a new increase in the monetization coefficient. The international reserves of the financial system grew, driven by the increase in working capital and deposits. There was also an increase in loans granted by financial institutions, although almost entirely to the public sector.
As for the private banks as a whole, although they showed a significant recovery in profitability in the third quarter compared to the second quarter of the year, they experienced a drop compared to the same period of the previous year as a result of lower interest results and higher charges for uncollectibility, despite the recovery of the result from holding financial assets.
