Although the Guatemalan economy has almost stagnated in recent months, during the first half of the year the number of loans granted for the purchase of residences grew 3%, and by 2021 it is predicted that sales could be similar to those of 2019.
The social distancing measures and the prohibition of several economic activities decreed by the authorities due to the covid-19 outbreak, caused considerable negative effects to the Guatemalan real estate market.
At the end of 2018, credit granted to the business sector in Guatemala registered a 7% increase over December of the previous year.
Figures from the Superintendence of Banks specify that up to December 2018 the credit portfolio reached $23.064 million and investment in securities $11.324 million, which compared to 2017 is equivalent to 6.8% and 11.3% increases, respectively.
Fitch Ratings notes that the Guatemalan banking system reports one of the lowest rates of delinquency in the region.
From the report 'Panorama of Guatemalan Banks' by Fitch Ratings:
Local Majority Banking System: The largest banks (70% of loans in the system) belong to local shareholders. At the same time, foreign-owned banks increased their share after Bancolombia acquired the controlling stake in Banco Agromercantil de Guatemala, S.A. (BAM).
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
Local Majority Banking System: The largest banks (70% of loans in the system) belong to local shareholders.
Two private banks account for 81% of the 5767 bank agents operating in the country, which in the last three years have increased their presence by 40%.
As of June 30, 2015, 5767 agents are operating , 9.4% more than in the same period in 2014, according to the Superintendency of Banks. "... Five banks have a banking agents system : Banco G & T Continental has 48.5% of these agents, Banrural 33%, BI 17.65%, followed far behind by Banco de Crédito (0.66%) and Banco Promérica (0.19%). "
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.
With the recent consent given by the Banguat for a new issuance of new debt totalling $1,917 million to finance the 2015 budget, the fiscal deficit could exceed 2.5% of GDP.
The private sector is not looking favorably on the approval given by the Monetary Board of the Bank of Guatemala for the possible issuance of $1.917 million in debt to finance part of the 2015 expenses, because the fiscal deficit would rise to levels above that considered acceptable in economic terms.
Banco Industrial has announced that it is prepared to start operations in Panama's financial center in the first quarter of 2015.
The Bank which is of Guatemalan origin, and which already has a presence in Honduras and El Salvador, is preparing to open its offices in Panama City, driven by the economic growth there.
Diego Pulido, manager of the company, told Elperiodico.com.gt "...
Banco Industrial will be investing $2.5 million in opening six new branches in El Salvador.
Banco Industrial de Guatemala has announced the opening of six new branches in El Salvador, in which will it invest $2.5 million. The first three branches will open before the end of the first quarter of 2014 and will be located in Sonsonate, San Miguel and Plaza Mundo.
The credit portfolio grew by 9.8% in 2013, while assets of supervised banking institutions increased by 12%.
During 2013 the bank granted a larger amount of loan, as its portfolio grew by 9.8%. While the loans in 2012 totaled $ 9.139 million in 2013 were $ 10,043 million, a difference of $ 904.3 million.
With regard to assets, these increased by 12% going from $25,162 million in 2012 to $28,176 million in 2013.
On August 28 the Superintendency of Telecommunications will auction three broadcasting frequencies with departmental coverage areas for Izabal, Retalhuleu and San Marcos.
This is the second phase of a series of auctions held by the entity, during the first phase of the Superintendency of Telecommunications (SIT) auctioned 13 broadcasting frequencies with national coverage, eight of which were awarded to the group Emisoras Unidas and six other bidders, and the point to point frequencies were awarded to Banco Industrial.
To date, about 8 banks in Guatemala, 4 in El Salvador and 3 in Honduras, Nicaragua and Costa Rica offer the service; there is still much ground to cover in the region.
The director of Technology at the company Ebclosión, Derick Brol, indicates that in Central America in 2011 there were mobile phone banking services in about 8 banks in Guatemala, 4 in El Salvador and 3 in Honduras, Nicaragua and Costa Rica.
The Association of Banks of Guatemala has announced the availability of $2.5 billion for loans for production within an optimistic economic outlook.
In light of the private sector’s optimism created by the assumption of a new government and the expectation of more foreign investment, the AGB has said that there will be credit growth in 2012.
The Industrial Bank general manager and current president of the ABG, Luis Lara, said that the bank has over one billion Q20 ($ 2.5 billion) available and there is sufficient liquidity.
As at 30 June, private trusts managed by banks increased by 9.41% compared to the same period in 2010.
Data from the Superintendency of Banks also indicated that trusts related to the state fell by 11.65% and those owned by municipalities increased by 155.4%.
The total amount managed by banking institutions as of June 30 this year was $990 million.
In recent years, electronic transfers have been growing at a rapid pace.
Bank managers agree that the use of electronic banking operations reduces transaction costs, being this the main reason for its growth.
Luis Lara, manager of the Banco Industrial (BI) told Prensalibre.com that the institution expects amount of electronic transactions made by the end of 2011 to exceed those of 2010 when they totaled $1,377 million.