In 2017, the profitability indicators of the Argentine financial system had their poorest showing since five years ago, according to data from Banco Central de la República Argentina.
Return on assets of the general financial system reached 3% in 2017 while its return on equity hit 25.8%, according to the central bank.
The decrease in the annual profitability indicators was driven by a lower financial margin and lower results for services, however, amid a decline in the system's administration expenses.
The central bank noted that the system's solvency indicators remained high in all banking groups. A small annual reduction, equivalent to 0.7 percentage point, was observed at the system level, mainly due to a sustained credit expansion to the private sector.
Capital integration of the financial system closed 2017 at 16% of risk-weighted assets, 91% of which was Tier I capital, the central bank said.
