SANTO DOMINGO.-. – The banking sector registered an annual growth of 9.5% in its assets at the end of the first quarter of the year, reaching RD$2 trillion 671,577 million, reported the Association of Multiple Banks of the Dominican Republic (ABA).
The ABA highlighted that this growth was led by the loan portfolio, which totaled RD$1 trillion 369,730 million, equivalent to a growth of 15.4% compared to March 2022, according to statistics from the Superintendency of Banks.
Regarding liabilities, which totaled RD$2 trillion 391,736 million, the association highlighted the annual growth of 9.8% in public deposits (RD$2 trillion 90,321 million), a result that reflects the confidence of savers in banking institutions.
He indicated that when analyzing the various specialized indicators at the end of the first quarter, a satisfactory performance is observed in the main areas of bank management, such as liquidity, asset quality, solvency and profitability.
In that order, banks' liquid assets represented 45% of total assets, delinquency rates were at just 1.0%, and the coverage ratio reached record highs. Regarding this indicator, for every peso in non-performing loans, there are 4.80 pesos of provisions to cover potential losses, the ABA stated in a press release.
In terms of solvency, he noted that the ratio of 15.2 is comfortably above the regulatory requirement (10.0); and profitability, both in terms of equity (ROE) and in terms of return on assets (ROA), remains at adequate levels.
“We are pleased to see the resilience shown by our sector; however, beyond the ups and downs of the current situation, we do not lose sight of our medium- to long-term challenges, which are related to a banking system that embraces innovation and responsibility towards the environment,” the entity stated.
The association also stated that it works closely with monetary authorities to include more people and businesses in the formal financial system, thereby contributing to improving the quality of life for Dominican families.
Economic context
The ABA highlighted that banking institutions have had to work in a difficult environment, characterized by economic slowdown, high inflation, uncertainty and high interest rates.
He emphasized that, contrary to what is observed in other parts of the world, the Dominican banking system has once again shown its resilience to adverse economic cycles, confirming the good health of the banking system as one of the pillars of macroeconomic stability and a channel of financing for households and productive sectors of the Dominican Republic.
