SANTIAGO, Chile--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Chilean Banking Sector - 1H15 Performance
Fitch Ratings has published its Chilean Banks Performance Dashboard report for the Chilean banking sector second quarter results.
Chilean banks second quarter 2015 (2Q15) results have benefited from stronger operating income, recovering net interest margins (NIMs), sound asset quality and costs controls, factors that have counterbalanced the economic slowdown.
Banks have ample assets denominated in inflation-linked units, which makes interest margins highly correlated to inflation trends. The inflation rate in 2Q15 was 1.4% (compared with 0.3% in 1Q15). Therefore, the system's NIM increased materially in 2Q15. Fitch expects that these factors could increase in 2H15, since annual inflation is now projected at 4%, according to market consensus (3% previously).
At the end of 1H15, the banking system's gross loans (excluding cross-border lending) increased 10.4% year over year. Fitch expects a more stable growing trend into the second half of the year based on economic slowdown and conservative credit risk appetite from banks.
The 'Chilean Banking Sector - 1H15 Performance' is available on Fitch's website at www.fitchratings.com or by clicking on the link above.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Bank Rating Criteria' (March 2015).
Global Bank Rating Criteria (pub. 20 Mar 2015)