Puerto Rico’s three largest banks are on track to close the year with record profits, surpassing the 2022 milestone. In the first nine months of the year, the three banking institutions reported combined profits of $1.24 billion, 23.3% more than in the same period last year, the highest figure ever reported for a nine-month period.
Bank profits are headed to exceed the record level reached in 2022, which was $1.57 billion. Bankers say they rely on an economy they describe as stable and healthy, backed by what they consider a strong labor market. They point to growth across all their businesses, though they are preparing for a possible decline in mortgage activity due to rising interest rates and home prices.
The banks’ good results are also reflected in delinquency, which has moderated: in the second quarter it fell to 1.85%, its lowest level in a year, according to data from the Federal Deposit Insurance Corporation (FDIC).