The balance of the total assets of the Credit Unions At the end of September 2020 it was placed at 60.050 million pesos, registering an annual decrease of 8.9%, mainly due to the fact that the loan portfolio was reduced, according to data reported by the National Banking and Securities Commission (CNBV).
49.5% of the sector’s assets were concentrated in five entities: Agricultores de Cuauhtémoc (13.5%), Ficein (11.2%), Industrial y Agropecuario de la Laguna (9.7%), Alpura (7.6%) and Para la Contaduría Pública ( 7.4%).
During the analysis period, the Unión de Crédito Progreso is transferring its assets and liabilities to BanKaool, SA, Institución de Banca Múltiple; Therefore, excluding this action, the annual decrease in the sector’s assets would be 6 percent. As of September 30, 2020, Progreso has transferred 91% of its assets and 86% of its liabilities.
Indicators
In the third quarter of 2020, the current loan portfolio registered a balance of 43,685 million pesos, an annual decrease of 9.6% and a participation of 72.7% in total assets.
According to the regulator, investments in securities of Credit Unions presented a balance of 6,882 million pesos with an increase in the last year of 10.2% and a representation of 11.5% in assets.
On the other hand, bank loans, from partners and other organizations, which are the core part of the funding source, registered an amount of 47,260 million pesos, with a real annual decrease of 10.2 percent. 69.5% corresponded to partner loans, which decreased 9.6% in real terms.
An indicator that showed the economic complexity that the sector is experiencing was the net result that was only 308 million pesos, which represents 61.4% lower in real terms compared to September 2019.
Late payment
The NPL ratio (IMOR) of the total portfolio, which is calculated through the ratio (past due portfolio / total loan portfolio) was 4.29%, 0.08 percentage points higher than that registered in September 2019, mainly due to loans with real estate guarantee.
The CNBV reported that the IMOR of documented loans with real estate guarantee grew 0.84 pp, reaching 9.69%, which reflects that this portfolio has the highest degree of impairment.
Likewise, the IMOR of credits documented with other guarantees was 1.02%, with an annual decrease of 0.19 percentage points, while the IMOR of credits without guarantee was located at 3.36% (with an annual decrease of 1.23 percentage points).
According to figures compiled by the CNBV, the IMOR of capitalized leasing operations reached 2.93%, that is, 0.58 percentage points less than in September 2019 and in the case of credits in factoring operations it amounted to 1.20%, that is, 0.33 percentage points more than in September of last year.
As of April, the members of the Credit Unions adhered some of their credits to the Special Accounting Criteria issued by the CNBV, and this helped to reduce the overdue portfolio and as a consequence of the IMOR. The highest delinquency rate was touched in March 2020 when the pandemic began, the level reached was 5.57%, from the second and third quarters of 2020, the trend was downward, standing at 4.45 and 4.29, respectively.
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The sector
The statistical information compiled by the regulatory entity shows that at the end of September 2020 the Credit Unions sector was made up of 83 entities in operation, the same number as in the same month of 2019.
During this period, the Cancún Industrial Commercial and Services Credit Union was reincorporated in October 2019, after the cancellation of its revocation that took place in April 2015. And the Huasteca Veracruzana Credit Union became SOFOM , ENR in April 2020.
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