At the close of the first quarter of 2025, financial intermediation with the private sector showed continued growth. In March, loans to companies and households in pesos increased by 3.3% (88.9% year-over-year), with all groups of financial institutions seeing a rise. Loans to the private sector in foreign currency grew by 4% in original currency terms (180.2% year-over-year). Considering both domestic and foreign currencies, loans to the private sector rose by 2.9% from February (94.5% year-over-year). This monthly performance resulted in a real growth in lending to the private sector during the first quarter of 2025 at 10.4%, surpassing changes recorded for similar periods in previous years across all financial institution groups.
The significance of loans to the private sector within the financial system’s balance sheet continued to grow. By the end of Q1, bank financing to the private sector represented 39.6% of assets for all financial institutions, marking an increase of 1.5 percentage points from February and 17.2 percentage points year-over-year. The non-performance ratio for financing to the private sector was at 2% in March, slightly up by 0.2 percentage points. The delinquency rate for household loans stood at 3.3%, while that for company loans was at 0.9%. Provisions within the financial system accounted for 3% of total loans to the private sector and covered 147.6% of non-performing portfolios.
Private sector deposits in pesos showed no significant change against February (20.1% real terms year-over-year). Sight deposits in pesos increased by 4.2% in March (11.4% real terms year-over-year), primarily within interest-bearing segments, whereas time deposits decreased by 4.1%, despite a real-term increase of 32.1%.
Amidst sustained credit growth, liquidity indicators for domestic currency dropped in March, with broad liquidity ratios standing at 34.2% of peso deposits, down by 1.9 percentage points from February levels.
Solvency indicators remained high as Q1 ended, with regulatory capital compliance reaching 31.9% of risk-weighted assets (+2.9 percentage points from February but -7.5 percentage points year-over-year). Capital positions were at 297% of regulatory requirements (+35 percentage points monthly but -99 percentage points year-over-year).
In March, regulatory changes concerning operational risk requirements came into effect per BCRA’s Communication A8068 aligned with Basel Committee guidelines.
Over the past year until March, total comprehensive income amounted to a return on assets (ROA) of 2.5% and return on equity (ROE) of 9.7%. These figures have declined compared to last year’s data.
Electronic payment methods saw continued growth during this period; instant fund transfers rose by volume and value significantly—28% and 39.4%, respectively—year-over-year in real terms.
QR code-based transfer payments increased substantially—98.4% in volume and an impressive rise by value—136 .4%. E-checks also experienced growth both volumetrically (40 .3%)and monetarily(48 .3%), comprising over half(54 .4%)of cleared checks volumetrically,and nearly four-fifths(78 .8%)by value.
