Bank Report, February 2024

Summary:

In February, the financial intermediation activity with the private sector decreased. Despite this, the financial system maintained elevated liquidity, provisions, and capital levels. Minorist payment electronic means operations reduced, partly due to seasonal factors. However, immediate transfers more than doubled in quantity (+120.3%) and increased 17% in value. The real financing balance to the private sector in pesos decreased by 1.7% (-30.1% i.a.), mainly driven by declines in commercial financing and an increase in PSP accounts. The system's liquidity indicators remained high, with a 6.9% increase in the overall liquidity indicator. The sector's capital integration increased by 5.1 p.p. to 37.9% of the weighted average risk assets. The system's profitability indicators also improved, with a total return on equity of 25.5% and a return on assets of 5.3%.