At the close of June of this year, total assets of the Dominican banking system reached RD$3.64 trillion (56.7% of Gross Domestic Product, GDP), marking an 11.2% increase compared to the previous year, which translates to an additional RD$365 billion, according to the Quarterly Report on the Financial System up to June 2024, released by the Superintendency of Banks (SB).
Of the total banking assets in the Dominican Republic, 57% correspond to loans granted. Specifically, the gross loan portfolio stood at RD$2.07 trillion (30.4% of GDP), showing an annual growth of RD$300.1 billion, that is, a 16.9% increase.
The expansion of the loan portfolio accounted for 81% of the total asset increase between June 2023 and June 2024.
As of June of the current year, the portfolio distribution showed that the majority belonged to the private commercial sector (52.6%), followed by consumer loans (excluding personal credit cards) at 23%, mortgage loans (17.6%), personal credit cards (4.9%), and loans to the public sector (1.8%).
Regarding the currency denomination of active loans, private sector loans not denominated in Dominican pesos totaled RD$443.6 billion at the close of the first semester, reflecting a 17.5% increase compared to the same period in 2023, when these loans reached RD$377.1 billion.
Regarding the total liabilities of the national financial system, these closed June at RD$3.202 trillion, experiencing an annual variation of 10%, driven mainly by the growth of public deposits (7.4%), which represent 77.8% of all bank liabilities.
Families constitute the largest source of resource mobilization for the financial system, reaching RD$1.45 trillion by June of this year, which translates to 52.9% of the total.
On the other hand, real sector companies (private companies) occupied the second position in importance as a source of mobilization with RD$612,054 million, equivalent to 22.3% of total deposits. Microenterprises, with deposits of RD$145,568 million, occupied third place, representing 5.3% of the total.
Risk
By June, the delinquency rate registered a slight increase of 0.3 percentage points compared to the same quarter of 2023, standing at 1.41%.
The coverage indicator by financial entities has resumed its historical trend, decreasing from 395.4% in August 2022 (its highest peak since June 2006) to 225% at the end of the second quarter of 2024.
Likewise, total constituted provisions increased from RD$59.3 to RD$60.1 million at the end of the second quarter of this year.
Management
The financial system reported earnings before income tax amounting to RD$52.9 billion, with a return on equity (ROE) indicator of 24.9%. Meanwhile, the average return on assets (ROA) remained at 3.0%.
Operational efficiency stood at 60.1%, showing an improvement compared to the previous year, when it was at 62.5%.
image credits for this post: Deultimominuto.net
