Argentina bank lending gathers pace
Loans to the private sector in Argentina expanded 14.7% in real terms in the 12 months through June.
The portfolio stood at 732bn pesos (US$42.5bn), the central bank said in a report.
The pace of loan growth to the private sector has accelerated since January, when the portfolio was just 0.3% bigger than it was 12 months earlier.
Argentina's economy is forecast to expand this year after contracting in 2016, as the administration of business-friendly President Mauricio Macri (pictured) works to open the country up for business through measures such as reducing subsidies and lifting forex controls.
In July, 3.98bn pesos in inflation-linked mortgage loans were awarded compared with 2.62bn pesos in June and 1.64bn pesos in April.
CREDIT QUALITY
The NPL ratio of Argentina's financial system was 2.0% at the end of June, flat compared with April and May, and up from 1.9% in at end-March.
The ratio for state-owned banks was slightly higher, 2.1%, while the ratios for domestic private banks, local units of foreign banks and non-bank financial institutions were 2.0%, 1.8% and 4.3%, respectively.
State-owned banks accounted for 29.8% of the NPL portfolio.
DEPOSITS
Private sector peso-denominated deposits were up 3.1% in real terms in June while overall deposits (national and foreign currency) were up 13.5%, the central bank said.
ROA
The system's average return on assets was 2.5% in June, down from 3.8% in May.
TOP FIVE LENDERS
An August report published by the central bank reveals which were the biggest of the country's 78 financial institutions at the end of April.
By assets, public sector heavyweights Banco Nación and Banco Provincia Buenos Aires led the pack.
No. 1
As well as topping the table in terms of assets (678bn pesos), Banco Nación led in terms of loan portfolio (161bn pesos), deposits (533bn pesos) and net equity (86.0bn pesos).
No. 2
Banco Provincia Buenos Aires took the No. 2 spot in terms of assets (267bn pesos) and deposits (203bn pesos), but private sector player Santander Rio, a unit of Spain's Santander, beat it in terms of loan portfolio (133bn pesos) and local private sector bank Macro held the No. 2 spot in terms of net assets (23.7bn pesos).
No. 3
Santander Rio reported 252bn pesos in assets, and also held the No. 3 spot in terms of deposits (196bn pesos) and net equity (23.2bn pesos). Local private lender Galicia y Buenos Aires was ranked third for loans (115bn pesos).
No. 4
Galicia y Buenos Aires reported 226bn pesos in assets and was also ranked fourth for deposits (155bn pesos) and net equity (20.9bn pesos). Banco Provincia Buenos Aires was ranked fourth for loans (112bn pesos)
No. 5
BBVA Francés, a local unit of Spain's BBVA, reported 169bn pesos and was also ranked fifth for deposits (122bn pesos) and net equity (17.5bn pesos). Macro held the fifth spot for loans, with a portfolio of 90.1bn pesos.
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