The non-performing loan (NPL) ratio reported by Peru's banks has bottomed out over the last three months while, separately, vehicle lending continues to outpace overall lending.
According to the latest numbers from Peruvian banking association Asbanc, the sector's NPL ratio has stayed more or less stable over the last three months, dropping two basis points month-on-month to 1.53% through the end of February.
At the same time, lending continues to soar. Specifically, Asbanc reported that vehicle lending was up 21.6% year-on-year through the end of February, to US$474mn.
That rate of expansion is beyond the 19.8% year-on-year growth in lending to the private sector reported recently by central bank BCRP, and beyond its stated preference for a bank credit expansion rate below 20%.