Dominican financial system reaches RD$4.47 trillion in assets and shows strength
The financial system of the Dominican Republic continues to consolidate its growth, reaching total assets of RD$4.47 trillion. This figure, which represents 56.6% of the Gross Domestic Product (GDP), reflects a year-on-year increase of 12.6%, according to data presented by the Superintendency of Banks. This dynamism has been driven mainly by the strengthening of investments and the expansion of the credit portfolio.
Credit portfolio details
At the end of May, the financial system’s credit portfolio reached a balance of RD$2.45 trillion, experiencing a year-on-year increase of RD$201.43 billion. The analysis of credit behavior reveals the following trends:
- Private credit: Recorded real growth of 4.6%, with outstanding performance in the commercial (9.9%) and mortgage (4.7%) sectors.
- Consumption: A downward trend is observed, with a real contraction of 2.3% in consumer loans.
- Credit cards: This segment showed a variation of -1%, marking a significant change compared to previous periods.
- Foreign currency: Exposure in foreign currency decreased by -0.6 percentage points, standing at 22.1% at the end of May.
Solvency and profitability of the sector
The soundness of the financial system remains robust. With a solvency ratio of 18.71%, the sector significantly exceeds the regulatory minimum of 10%. Meanwhile, the adjusted technical equity rose to RD$550,115 million, consolidating a capital surplus that guarantees stability against potential risks.
The Dominican financial system has demonstrated a remarkable capacity for value generation, with net profits reaching RD$49.714 billion, reflecting a return on equity (ROE) of 18.31%.
Asset quality and delinquency
The quality of the credit portfolio remains at healthy levels. The non-performing loan ratio stood at 1.89%, while the stressed non-performing loan ratio was 7.69%, figures that demonstrate prudent risk management. Furthermore, the system has optimal coverage levels, with provisions representing 168% of the non-performing portfolio, thus ensuring the peace of mind of depositors and the stability of the national financial market.
