Fitch's Analysis of Banking in Guatemala

The five largest banks account for 82% of total assets in the system, three of them focusing on the corporate credit segment and the other two on retail banking.

Monday, July 13, 2015

From the report by Fitch Ratings "Panorama of Banks and Guatemala"

Largest banks of Guatemala: Related to the Sovereign Ratings

Banking System Concentrated in Five Largest Banks: The five largest banks account for 82% of the system's assets. Fitch Ratings believes that the strong franchise and customer base of banks will continue to hold their position in the foreseeable future. BI * and Banrural* dominate the system. BI, GT & C * and * BAM focus on business loans, while Bantrab* and Banrural and focus on retail banking.

Significant exposure to Guatemala sovereign debt: The largest banks have significant exposure linked to the Guatemalan sovereign debt due to significant positions in government debt instruments for liquidity purposes. This is due to the lack of local investment in alternatives and the absence of regulatory capital charges for these titles.

See full report here.



More on this topic

Costa Rica: State Bank Profits Fall

February 2018

In 2017, profits of Banco de Costa Rica fell by 30% compared to 2016, and those of the Banco Nacional fell by 22% in the same period.

The reduction in profits was due to a decrease in the margin of financial intermediation, due to an increase in interest rates in both dollars and colones, as explained by the authorities of the entities to Nacion.com.

The Largest Banks in Guatemala

May 2016

According to Fitch low capitalization indicators continue to reflect a structural weakness, with a potential reduction in the net interest margin and relatively high dividend payments.

From a statement issued by Fitch Central America:

Largest banks in Guatemala: Sovereign Risk Puts Pressure on Ratings

Grupo Bancolombia is Majority Stakeholder in Grupo Agromercantil

January 2016

With the purchase of another 20% stake, Bancolombia Group now holds 60% of the shares of the Group Agromercantil de Guatemala.

Two years after the acquisition of a 40% stake of Argomercantil Holding Group, Grupo Bancolombia has decided to consolidate its presence in the country by acquiring a further 20%. The Colombian company said the acquisition is part of a consolidation strategy in Guatemala and Central America.

Moody's Warns of Weaknesses in Centralamerican Banks

July 2015

The banks Banco de Costa Rica, Banco Nacional and the Banco Industrial de Guatemala "will have to reduce the growth rate of their loans, since their core capital levels remain modest."

From Moody's press release:

Mexico, July 21, 2015 -- Central America's leading banks will need to slow the pace of their loan growth as their core capital levels remain modest, said Moody's Investors Service in a new report.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Aug 5)
Brent Crude Oil
70.08
Coffee "C"
177.5
Gold
1,809
Silver
25.42