The total gross loan portfolio of multiple banks registered a balance of RD$1 trillion 235,845 million as of March 2022, with a growth of 2.32% in the January-March period of the current year.
SANTO DOMINGO.- During the first quarter of this year, there was a clear improvement in the delinquency rate of multiple banks, which stood at less than one percent at the end of March, indicative of the good behavior of the sector's users in relation to their credit obligations.
This was reported by the Association of Multiple Banks of the Dominican Republic (ABA), when it released some of the main indicators of the sector, among which it highlighted that the delinquency rate was 0.99% in March of this year, lower than the 1.87% recorded at the end of the first quarter of 2021.
The ABA highlighted that another indicator revealing improved customer performance in the first three months of the year regarding their banking obligations is the non-performing loan portfolio, that is, the amount of loans that are in arrears. In this regard, it detailed that this portfolio decreased by RD$3 billion, falling from RD$15.2 billion in December 2021 to RD$12.2 billion in March 2022.
The association detailed that loan loss provisions for multiple banks increased by RD$321 million during the first quarter of 2022, reaching RD$59,464 million in March. It noted that this resulted in a loan loss provision coverage ratio of 4.86% in March 2022, higher than that shown in March and December of the previous year.
He explained that these results reflect the effort of multiple banks to maintain good coverage of provisions on non-performing loans, since this indicator means that for every peso in non-performing loans there are RD$4.86 of provisions.
Gross loan portfolio of the banking sector
The Dominican Republic's Multiple Banks Association highlighted that the gross loan portfolio of multiple banks showed an increase of RD$28,061 million, representing an increase of 2.32%, during the first three months of the year, according to statistics from the Superintendency of Banks of the Dominican Republic.
In this regard, he explained that the loan portfolio increased from RD$1 trillion 207,783 million in December 2021 to RD$1 trillion 235,845 million in December 2022. According to the banking association, this growth was due to an increase in credit to the private sector of RD$31.3 billion, representing 2.68% growth during the quarter.
