Non-performing loans and their impact on the profitability of Peruvian Municipal Savings and Loan Banks

Abstract

Efficiently managing loans granted can have an immediate effect on the profitability and viability of a financial institution. Considering this, this study determined the impact of past-due loans on the profitability of the Peruvian Municipal Savings and Loan Banks during the period 2022. A quantitative, non-experimental, cross-sectional, correlational-causal methodology was used, which employed documentary analysis and the design of a data sheet. The population and sample consisted of 11 Municipal Savings and Loan Associations, which have been approved and are inspected by the Superintendence of Banking, Insurance and Private Pension Fund Administrators. A positive and moderate correlation of Rho = 460 and a significance level greater than 0,05 (0,154 > 0,05) was found, that is, overdue loans have a positive, but not significant, impact on the profitability of these financial institutions. The behaviors of these variables allow us to conclude that having more past-due loans will not always result in lower profitability, since there may be other factors that help mitigate this negative impact