Argentina’s banks see strong credit demand as their model shifts

Credit growth is returning to Argentina and is right on time to help the banks that are having to shift their business models.

Recent results from Banco Macro and Banco Galicia show 20%-plus year-on-year loan portfolio growth in real terms.

The growth in credit demand in the country is being led by the corporate sector, but the recovery is broad-based. There is a burgeoning increase in mortgages – albeit from a practically non-existent base – while other retail lending is also seeing positive trends.

Sergio Grinenco, CEO of Banco Galicia, says recent results show that the long anticipated demand for credit is now playing out.