Colombian banks’ performance suffered in 2023 for several reasons. Household spending slowed, high inflation persisted, interest rates rose and there was a degree of market volatility. Moreover, GDP growth fell from 7.3 per cent in 2022 to just 0.6 per cent, the lowest rate in more than two decades (excluding 2020, during the Covid-19 pandemic).
Last year was one of the most complex for the financial sector. Of its 101-year history, 2023 was the fourth-worst in terms of performance of the credit portfolio, according to Asobancaria, the national banking association. Around a third of the financial sector recorded a loss.
