Preliminary statistics from the Superintendency of Banks (SB) reveal a year-on-year growth of 16.2%.
SANTO DOMINGO. – Banking assets experienced a year-on-year growth of 16.2% to reach RD$3.5 trillion at the close of 2023, according to preliminary statistics from the Superintendency of Banks (SB).
The system's loan portfolio amounted to RD 1.93 trillion, with a growth of RD 317.7 billion, representing an expansion of 19.6% compared to the previous year, according to a press release.
Similarly, financial intermediation entities improved their overall risk profile. In the last year, the delinquency rate continued to register historically low levels, reaching 1.2% at the end of 2023, still below the 1.9% recorded in February 2020, prior to the pandemic.
Stressed delinquency, which considers additional elements that could identify emerging risks in the loan portfolio, stood at 6.68% at the close of December 2023, decreasing by 1.1 percentage points year-on-year.
The loan loss provision coverage ratio continues its normalization process. As of December 2023, the ratio stood at 267%, reflecting appropriate coverage levels against potential losses from past-due loans.
The balance of system availability amounted to RD 573.2 billion, showing an increase of RD 67.5 billion, for a growth of 11.8% compared to December 2022.
Regarding the behavior of savings, public deposits increased by 22.2% during the past year, reaching RD$2.6 trillion.
The financial system's capital level, measured by net worth, continued its upward trend, registering an increase of RD$54,935 million, equivalent to a year-on-year growth rate of 15.7%. As of the end of December 2023, the system's net worth amounted to RD$405,448 million.
Regarding profitability, the financial system achieved pre-tax results of RD 99,483.2 million at the close of 2023, representing an increase of RD 24,005.3 million, which is equivalent to a year-on-year growth of 31.8%.
Likewise, return on assets (ROA) showed an increase of 0.44 percentage points, rising from 2.6% at the end of 2022 to 3.1% in December 2023. Similarly, ROE or return on equity experienced an improvement of 3.4 percentage points, rising from 23.0% to 26.4%.
In conclusion, the Dominican financial system remains stable, resilient, and with adequate loss absorption capacity, exhibiting levels of profitability, solvency, and liquidity suitable for responding promptly to changes in market conditions and the economic situation.
Summary of indicators:
• Assets: reach DOP 3,489.2 billion, with a year-on-year growth of 16.2%
• Loan portfolio : increased to DOP 1,934.9 billion (+19.6%)
• Stressed delinquency : 6.68%, a reduction of 1.1 percentage points compared to December 2022
• Provisions established for loan portfolio : DOP 59,553 million, for a reduction of -1.2%.
• Coverage indicator : 267%, for a decrease of 85 percentage points compared to December 2022.
• Net worth : DOP 405,448.7 million, for a year-on-year growth of 15.7%.
• Profitability before tax : January-December accumulated DOP 99,483 million, for a growth of 31.8% compared to the same period in 2022.
• ROA : 3.1%, 0.44 percentage point higher than December 2022
• ROE : 26.4%, 3.4 percentage points higher than December 2022
