Industry, Agriculture, and Commerce Record Strong Performance in Loan Portfolio for First Quarter of 2024

Friday, 03 May 2024

The loan portfolio for industry, agriculture, and commerce accounts for 27.9% of the loans in the National Banking System (SBN) as of the first quarter of 2024, according to the Banking Activity Report (IAB) issued by the Superintendency of Banks of Panama (SBP).

During the surveyed period, these loan portfolios showed significant growth, with the industrial sector reaching USD 4.02 billion, a 19.7% increase of USD 661.7 million; followed by agriculture with USD 534 million, a 7.9% growth of USD 39.3 million, and the commercial sector with USD 12.57 billion, a 7.8% rise of USD 911.4 million compared to the first quarter of 2023.

The personal consumption portfolio increased by 4.9%, reaching a balance of USD 13.79 billion, an increase of 646.1 million; and the mortgage portfolio grew by 3.6% to USD 20.73 billion, representing USD 714.1 million more compared to the same period a year ago.

New loans portfolio totaled USD 5.73 billion, accumulating through the first quarter of 2024, representing a 17.1% growth, which is positive but should be approached with caution.

The International Banking Center (CBI) experienced a significant year-on-year increase of 6% in deposits, reaching USD 106.37 billion, an additional USD 5.99 million compared to the same period a year earlier. This growth is attributed to a 4.8% increase in domestic deposits (amounting to USD 65.97 billion) and a robust 7.9% growth in foreign deposits (totaling USD 40.39 billion).

In contrast, SBN deposits reached USD 93.36 billion, a year-on-year increase of 6.2%. Domestic deposits account for 70.5% of total SBN deposits, with 73% of these representing customer deposits. This result reflects consumer confidence in the banking system, indicating a broad and robust deposit base essential for financial stability.

CBI assets grew by 4.9%, totaling USD 148.90 billion, a year-on-year growth of USD 6.89 billion, attributed to a strategy aimed at maximizing returns on productive assets and active management of available resources.

During the first quarter of 2024, there was a strengthening in the liabilities and capital structure, which, apart from optimizing profitability, could also mitigate potential risks anticipated for 2024.

On the other hand, the SBN recorded total assets of USD 132.04 billion, a USD 6.76 billion or a 5.4% increase compared to the first quarter of 2023.

The IAB for the first quarter of 2024 emphasizes the importance for banks to continue improving their risk management practices and strengthening their capital reserves to ensure an effective response to fluctuations in portfolio quality and other emerging challenges for 2024.

For further information on the variables explaining this report, please visit our website at Statistics.

IAB marzo 2024