Key facts
- Real bank loan growth in Colombia was 3.3% year-on-year in March.
- Commercial and mortgage lending led the growth.
- Consumer lending contributed 0.9 percentage points to the headline growth.
- The non-performing loan (NPL) ratio stood at 3.7%.
- Higher stress was observed in consumer loans.
In March, Colombia's real bank loan growth registered at 3.3% year-on-year, driven primarily by commercial and mortgage lending. Consumer lending, despite facing a tightening credit cycle, added 0.9 percentage points to the overall growth momentum. However, the non-performing loan (NPL) ratio increased to 3.7%, with a notable rise in stress within consumer loan portfolios. The outlook for credit recovery is tempered by the central bank's restrictive monetary policy, reduced housing subsidies, and a weak construction sector.