Report on Banks

Executive Summary

Financial system intermediation with the private sector increased in June, in both national and foreign currency. This performance occurred within a framework of adequate coverage margins with liquidity, provisions, and capital at an aggregate level.

In June, the real balance of total credit to the private sector in pesos granted by the financial system grew by 1.7% (2.6% real y.o.y.). The increase was widespread across the different credit facilities, with the performance of commercial lines standing out. The balance of financing to the private sector in foreign currency increased by 4.6% in the month —in original currency— (53.2% y.o.y.). Considering all currencies, the real balance of credit to the private sector from all entities increased by 3.1% compared to May at a systemic level (10.1% y.o.y.).

Within the framework of seasonal factors, the real balance of private sector deposits in pesos in the financial system increased by 3.9% in June (-1.2% y.o.y.), mainly explained by the performance of sight deposits. The balance of private sector deposits in foreign currency increased by 1.1% month-end —in original currency— (27.4% y.o.y.).

The private sector credit irregularity ratio decreased in June, settling at 7.6% at an aggregate level (-0.1 p.p. monthly). The delinquency indicator for household financing stood at 12.8%, while for companies it reached 3.5%. The performance of the private sector (and household) financing delinquency ratio was explained by a slowdown in the real growth rate of the irregular portfolio and a real increase in total credit. The estimated probability of default (EPD) for the total credit balance to the private sector decreased during the period, to 2.6%. The financial system continued to show high levels of coverage against credit risk. The total provisions balance represented 86.6% of the irregular portfolio and 6.5% of total financing.

In June, the balance of available funds in pesos represented 12.7% of deposits in this denomination at an aggregate level (+0.8 p.p. compared to May). The indicator, which also includes public securities allocated to minimum cash requirements and net short-term active operations in pesos remunerated with the BCRA, reached 34% of deposits in pesos (+1.4 p.p. monthly). Aggregate liquidity in foreign currency stood at 48.6% of these deposits (-2.3 p.p. monthly).

The financial system closed the first half of the year with high solvency levels. Capital integration (RPC) totaled 29.8% of risk-weighted assets in June (-0.9 p.p. monthly). The excess capital integration represented 269% of the regulatory requirement (-12.3 p.p. monthly) and 35.4% of private sector credit net of provisions (-1.6 p.p. monthly).

The profitability of the financial system increased in the second quarter of 2026, with aggregate results equivalent to 2.5% annualized (a.) of assets (ROA), above previous periods. For the last 12 months, the ROA reached 1.2%, a slightly lower level in a year-on-year comparison.