Banks: profitability falls in 2020

The dynamics of the monetary issue, the intervention of the BCRA on the financial margin, the freezing of commissions and the higher default affected the results which, for the time being, with anaesthetised inflation, will continue to be positive in real terms, but with the definite possibility of being downwards. In 2019 the margin for the financial system was 15%, and for private banks, it was 20%. In the first quarter of 2020 that margin reduced to 14% for the financial system and 16% for private banks. In the last two quarters, the weight of income from BCRA’s remunerated assets (passes and Leliq) in the financial margin was 65% and 75%, in each case.

Source: Ámbito