Despite signs of an economic recovery at the end of 2020, weak credit demand during the year did not help Colombia’s banks. Unsecured consumer loans took a hit because of prolonged lockdowns and high unemployment rates, as rating agency Fitch recently noted in a May research note. And while commercial loans and mortgages grew last year, this was the result of excess liquidity and government subsidies — suggesting the growth of those portfolios may be temporary.
Based on The Banker’s analysis, gross total loans grew, either marginally or up to about a tenth, at all of Colombia’s largest five banks. The rates go from 0.41% for Bancolombia, the country’s largest bank both by assets and Tier 1 capital, to 9.85% for second biggest Banco de Bogotá.
