Commercial and mortgage loans at a good pace, according to the Banking Activity Report

Monday, 03 October 2022

According to the Superintendency of Banks of Panama’s Banking Activity Report data, the commercial and mortgages components drive the sustained growth of the International Banking Center’s (IBC) loan portfolio as of August 2022.

The report indicates that the total loan portfolio net of provisions amounted to USD 81.26 billion, a USD 9.23 billion annually, i.e., 12.8% versus August 2021. Another item that drives this growth are the loans granted to the external sector that grew 33.9%.

Regarding the domestic loan portfolio, it recorded USD 57.17 billion as of August, which indicates a year-on-year increase of USD 2.72 billion or 5.0%.

The balance in terms of mortgage loans (commercial premises and housing loans) is positive, remarks the document, and recorded a 4.3% increase. As for housing loans, banks have been increasing their placement significantly, recording, as of August 2022, a year-on-year increase of 5.8% in the amount placed; the portfolio balance covered by this survey reached USD 16.67 billion.

A growth of 11.7% stands out in the preferential interest rate segment, compared to non-preferential interest rate loans, which increased by 1.3% in this period. The foregoing implies that the performance of the housing market relies heavily on the subsidy regime.

On the other hand, the flow of new loans granted, during the January to August 2022 period, increased by 58% compared to a year earlier.

The net profit totaled USD 1.26 billion, USD 423.3 million more than the same date of 2021 and a year-onyear growth of 50.7%.

On the modified [loan] portfolio side, for August 2022, it reaches a figure of USD 3.42 billion, which represented a 75.2% decrease versus August 2021. The highest-risk components of this portfolio, i.e., the modified doubtful and modified loss loans, amount USD 993 million, being the first time that this portfolio is below the USD 1 billion mark.

The International Banking Center recorded, as of August 2022, appropriate solvency and liquidity levels of 15.1% and 56.4%, respectively, thanks to the capital capacity and proper risk management by banks, remarked the report.

For this period, the banking sector recorded total assets of USD 137.37 billion, a year-on-year increase of USD 6.55 billion versus August 2021, i.e., a 5.0% growth.

For further information on the variables that better explain this report, please visit our website, Financial and Statistical Node.

Crédito comercial e hipotecario a buen ritmo, según el Informe de Actividad Bancaria