In the first eight months of the year the profits of the International Banking Center totaled $1.266 million, 13% more than in the same period in 2016.
Wednesday, November 22, 2017
Growth of the local credit portfolio to the private sector in the National Banking System was 7.8% in August 2017, compared to the same period in 2016.
By credit destination, the sector that reported the greatest expansion was that of companies in the real estate sector and of individuals with business activities.The credit business has kept up a positive rhythm in economic sectors that show dynamism, such as construction (13.0%), personal consumption (9.8%), industries (7.1%), livestock (8.7%) and mortgages (9.0%), among others.
From a statement issued by the Superintendency of Banks in Panama:
Stability in the volumes of active and passive operations contributed to registering a slight increase in total assets and liabilities. This behavior is due to the good performance of income generating assets and liabilities with cost.
In regards to assets, the local portfolio continues to grow on a recurring basis (growth of 7.5%), mainly in companies and individuals sectors.On the other hand, the securities portfolio registered increases, both in securities acquired from abroad, where a significant number of fixed income instruments are recorded, with significant holdings in US government securities and in debt instruments in organized markets, as well as in other securities in the local market, where treasury notes and treasury bonds grew 18% and 22% respectively.Both instruments represent 70% of public securities accounted for by banks in the domestic sector.
Entities in the International Banking Center in Panama generated profits of $529 million in the first quarter of the year, 10% more than in the same period in 2017.
The Superintendency of Banks reported that "...The March result of the International Banking Center (CBI), which includes general and international license banks, shows profit growth of 9.5%.The increase in Net Income is the product of increases in non-recurring financial income, such as the purchase and sale of securities and transactions with derivative instruments."
In May 2016 the gross portfolio of loans granted by the financial system totaled $4.6 billion, 23% more than in the same month last year.
From a report by the Central Bank of Nicaragua:
As of May, financial system indicators show dynamism in intermediation, with adequate risk management and good indicators for profitability, solvency and capital.The loan portfolio of the financial system continues to grow above 20 percent. This credit growth is accompanied by appropriate risk indicators.Meanwhile, deposits are growing with decelerating rates in both currencies.The good performance of the financial system is reflected in the indicators of profitability (ROE of around 20%), solvency (enough coverage for portfolio at risk and overdue) and capital (capital adequacy greater than that required by the regulations).
Analysis by Fitch Ratings projects that banks in the region will maintain strong balance sheets and have stable profitability in 2014.
Excerpted from Fitch Ratings:
Differential Growth and Opportunities: Low financial depth, in most systems, continues to provide significant opportunities for expansion of bank balance sheets; although this is limited by low average income levels.
In the first half of the year profits in the banking system amounted to $900 million, a variation of -6.2% compared to the profits generated in the same period in 2013.
The Superintendency of Banks of Panama reported that this reduction is due to the loss of up to 14% in other income.
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