The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

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

Banks see normalization, with credit growth the driver of results; new mortgage product excites the market.

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 suit-160x186

Sergio Grinenco,
Banco Galicia

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

“The system is now showing a good performance in lending,” he says, adding that deposit growth is lagging due to the liquidity in the system, with many Argentines preferring to invest in mutual funds or buy central bank securities, such as Lebacs.

According to Credit Suisse analysts, Galicia’s strong results – net income rose 34% year on year, unadjusted for inflation that is around 22% – were driven mostly by growing demand for credit.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree