Consumer lending increases in August | Business | The Voice Within

In August, the volume of personal loans in Argentina increased by 20.4% in nominal terms compared to the previous month and 292.9% compared to the same month in 2023, exceeding the price change indices for ‘ first time in the past months.

With a total accumulated balance of just over $6 trillion, consumer finance recorded, for the first time in the last five months, a year-on-year increase that is higher than inflation for the period, which according to a report by First Capital Group, which was prepared on the basis. of the latest data reported by the Central Bank.

“After five months, when business placements grew in real terms, we see the first month in which the annual increase also exceeds the inflation of the period, breaking down inertia of the portfolios,” explained Guillermo Barbero, partner of the specialist consultancy. in finance.

The consulting firm is working for August with expected inflation at 4% per month and 238% year on year.

For the executive, the good results are the result of the commercial policies implemented by the financial sector, “as well as a relative improvement in the macroeconomic situation”, which “starts to bear fruit and management to revive a segment that is heavily affected by inflation,” he said. note.

Considering total loans to the private sector, the survey indicates growth for the fourth consecutive month, with a total balance in August of $37.6 billion, which represents a year-on-year increase of 215.3%, slightly lower than the estimated annual inflation for that period. .

Especially in the month of August, the $4 billion increase in nominal values, which represents an increase of 11.8%, was much higher than the price index estimated for this month. “The trend that has forced financial institutions to increase their participation in the private sector credit market,” First Capital Group reveals.

Other funding streams

When analyzing the main funding lines available individually, the report shows different behaviour.

For example, the work through credit cards recording a balance of $10.8 trillion, which means a nominal increase of 8.8% compared to the end of last month, clearly above the expected inflation values ​​for this period. Interannual growth reached 192.5%, being lower than the estimated levels of inflation for the year.

Regarding the rows of mortgage loansincluding those adjusted for inflation/UVA, in August there was an increase of 16.1% compared to the stock of $678,764 million from the previous month, accumulating a total balance at the close of $787,949 million, which means a year-on-year increase of 67.6% in nominal terms.

“This line also contributes to the positive trend shown by financing in pesos, with much smaller values. To give an idea of ​​how limited this phenomenon is within the financial sector, we can mention, for example, that the monthly increase in this portfolio is close to a tenth of the growth we see in personal loans or credit cards,” he said. says Barber.

For their part, the collateral credits They show a positive balance at the end of August of $2.13 trillion, growing 183% compared to $751,610 million in the same month of 2023. The change with respect to the balance of the previous month indicated an increase of 21.3%. “The reduction in the interest rate and financial stability, which allows the offer of longer terms for cancellation, creates the conditions for the development of this line,” said the economist.

Regarding the business loansthe increase was 9.8% in August, with a stock portfolio of $15.55 billion. Compared to the same month of the previous year, the increase is 231.4%. As an explanation, the consulting company maintains that, in this case, growth is more connected to the financing of working capital and investment, unlike other factors, which are expected to be used.

Regarding the dollar loanschanged so far +7.05% compared to yesterday. he is stock loans in dollars were $7,138 million. In this sector, the recovery goes hand in hand with “exchange stability and normalization of foreign trade,” said experts.

Finally, the dollar activity with credit cards an interannual increase of 65%, although with an irregular monthly behavior varying up and down. In August there was a decrease of 13.6% compared to the previous month, standing, as of August 31, at US $ 462 million, slightly lower than the values ​​before the epidemic.