In the macroeconomic environment the Andean countries continue to deliver solid growth in activity levels, despite the less favorable external environment and lower commodity prices.
In some economies the capital outflows seen at the end of 2013 are beginning to reverse in the wake of the announcement of the withdrawal of economic stimuli by the Fed. The move is providing support to exchange rates against the dollar, following earlier depreciation. Outstanding in the quarter are the application for international investment of the exchange rate resulting from the currency purchase-sale system called SICAD I, which complements the official market in Venezuela, and the depreciation of the Argentinean peso. As a result, the impact of currencies on the Group’s financial statements has been negative, both in the last 12 months and over the quarter. Unless otherwise indicated, the rates of change below refer to constant exchange rates.
The region’s financial system remains sound, with good levels of capitalization, robust profitability and NPA ratios in check. Credit continues at high rates (double-digit), although with signs of moderation in some countries. Deposits are also maintaining high rates of growth.
