Fitch Publishes Chilean Retail Lenders Dashboard

SANTIAGO, Chile--(BUSINESS WIRE)-- Fitch Ratings has published a dashboard report for Chilean retail lenders.

Fitch expects Chilean retail banks and non-bank financial institutions' profitability to suffer due to deterioration in asset quality and slower growth.

While the banking system's consumer loans quality remains solid, that of the payroll lenders has markedly deteriorated since 2012. Credit cards non-performing loans (NPLs) have remained relatively stable since 2010, although with higher charge-offs. Banks and credit card issuers have generally been more focused on medium- and higher income segments, and this has led to stronger loan demand for retail oriented non-bank financial institutions (especially the Cajas de Compensacion de Asignacion Familiar [CCAFs]), resulting in higher credit risks. Fitch expects further pressure on credit costs throughout 2015 and 2016 for retail lending as the economic recovery is delayed and unemployment is set to rise.

CCAFs performance has been under great pressure since 2011, mainly due to the effect of new regulations, which affected their lending capacity and higher provisioning requirements. In addition, higher cost bases in most entities due to different reasons and their business orientation of not maximizing profitability have also weighed down on their profits. While most CCAFs have resumed growth since 2014, Fitch expects recovery of their results will be gradual and will not reach the high levels shown up to 2010.

The 'Chilean Retail Lenders Dashboard' is available on Fitch's website at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Chilean Retail Lenders Dashboard

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869561

Applicable Criteria

Global Bank Rating Criteria (pub. 20 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863501

Global Non-Bank Financial Institutions Rating Criteria (pub. 28 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865351

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150813006172/en/

Fitch Ratings
Santiago Gallo
Director
+56-2-499-33-20
Fitch Chile Clasificadora de Riesgo Ltda.
Alcantara 200, Of. 202, Las Condes
Santiago, Chile
or
Abraham Martinez
Director
+56-2-499-33-17
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: [email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Erasca Shareholder Alert: ClaimsFiler Reminds Investors With Losses In Excess Of $100,000 Of Lead Plaintiff Deadline In Class Action Lawsuit Against Erasca - ERAS
• BoatNumbersDecals.com Releases Self-Service Boat Decals Design Tool
• Celestica Completes Equity Offering