Colombia regulator urges banks to hold profits due to loan portfolio deterioration

Bank earnings plummeted 55.3% last year to 6.1 trillion pesos (US$1.7 billion) because of adjustments made to manage debt that was overdue by more than 30 days.

RIO DE JANEIRO, BRAZIL - Colombia banks are being asked to retain close to 68% of the profits they made in 2020 to boost assets in the face of an expected further deterioration in their loan portfolios this year, the country’s banking regulator said on Friday, February 26th.

Bank earnings plummeted 55.3% last year to 6.1 trillion pesos (US$1.7 billion) because of adjustments made to manage debt that was overdue by more than 30 days.

Overdue debt totaled 5.4% - equivalent to some 26.5 trillion pesos - of all debt on banks’ balance sheets in 2020 . . .

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