Corporate Banking Credit Portfolio Continues Growing in the Third Quarter of 2023

Tuesday, 31 October 2023

As of the end of the third quarter of 2023, the corporate banking credit portfolio of the National Banking System (SBN) grew by 4.2% year-on-year, reaching a total of USD 60.58 billion. The data suggests widespread growth in several economic sectors, with a particular emphasis on the corporate and household components, as revealed by the Banking Activity Report (IAB) for September 2023.

The report highlights that, by segment, credit granted to companies and individuals engaged in commercial activities grew by 3.5%; consumer credit, 3.5%; mortgage credit, 4.6%; activities related to financial services, 4.7%; and the public sector saw a significant growth of 13.1%.

On the other hand, the International Banking Center’s (CBI) bank deposits, as of September 2023, totaled USD 100.52 billion, reflecting a USD 3.64 billion (3.8%) increase. Domestic deposits during the surveyed period showed a growth of USD 492.6 million, translating into a 0.8% increase compared to the same period in the previous year.

It is worth noting that the CBI experienced an 8.8% year-on-year increase in total foreign deposits between September 2022 and September 2023.

CBI’s total assets increased to USD 141.84 billion, marking a growth of USD 5.092 billion compared to September 2022, equating to a year-on-year increase of 3.7%. This growth in banking assets can be attributed to the expansion of the net credit portfolio, which grew 4.1%, and the increase in the securities component, which recorded a 4.7% growth.

In a positive development for the Panamanian economy, the Financial Action Task Force (FATF) removed Panama from the gray list, recognizing the country’s efforts in combatting money laundering, terrorist financing, and the proliferation of weapons of mass destruction. This exclusion will enhance the country’s international image, attract foreign investment, facilitate credit lines, and strengthen international banking relationships, among other economic and financial benefits.

On the other hand, the CBI continued to maintain sound financial indicators. The prudential solvency and liquidity indicators, which reached 15.5% and 55.5% respectively, by the end of the period, remained above the required regulatory minimums.

For more information about the variables that further explain this report, please visit our website at Statistics.

Continúa creciendo la cartera crediticia de la banca comercial al tercer trimestre de 2023