S&P Global Ratings expects banks in Latin America to continue posting a resilient operating performance in 2022. Sound profitability allowed the region's banks to withstand credit cycles and economic downturns in the past and had once again helped them during the pandemic-induced economic crisis. Latin America's banks generate high margins because of their ability to price for risk and their diversified business profiles. This is particularly the case among Brazilian banks, given that they're market leaders in lending but also in insurance and asset management. We expect profitability to continue improving in 2022 across most banking systems in the region, reflecting lower provisioning needs thanks to the extraordinary levels banks raised at the onset of the pandemic.