For this year, growth in banking credit to the private sector is projected at between 6% and 9%, but the year-on-year increase registered up to March was only 4%.
Figures from Banco de Guatemala show that during the year 2017 credit to the private sector grew at a monthly average of 5.17%, and the lowest increases were reported in November and December when the amount increased compared to the same months of 2016 by 4.9% and 3.8% respectively.
Banco de Antigua has announced the acquisition of the microcredit portfolio of the G & T Continental entity, which will continue to focus on consumer and corporate areas.
G & T Continental Bank reported that the operation is due to a restructuring process to meet the new technological trends in the financial market.
The financial group G & T Continental has obtained a general license to expand the services it provides in Panama, where it plans to strengthen its corporate and private banking area.
The financial institution started operations in Panama in July 2008 under the name of Banco Financia, S.A. (BMF) and in 2009 changed its name to Banco G & T Continental (Panamá) S.A.
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%). "
In the first half of 2014 banks assets in the country increased by 12% compared to the same period in 2013, while the amount of loans granted grew by 11%.
Data from the Superintendence of Banks of Guatemala reveals that the profits made by banks in the same period grew by only 0.87%.
Federico Martínez Linares, CEO of Banco G & T Continental told Eleconomista.net that "...
The Guatemalan bank G&T Continental has announced the opening of two new branches in the banking center of Panama.
The G & T Continental Bank of Guatemala plans to open two new branches in Panama in 2014. The company already has two other branches in the country.
Amador Carballido, development manager of G & T Continental explained that "in this country, with 3.8 million people, we estimate that there are more than five thousand customers."
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.
For every $100 that migrants send to their families between $30 and $35 are in some way related to banking services.
Prensalibre.com reports: "If you take into account that from January to September this year family remittances, according to the Bank of Guatemala, totaled $3.801 billion, the amount that passed through banks was between $1.1403 billion and $1.3303 billion" .
Thriving companies from the banking mining, sugar, rubber, call center, and palm oil sectors, have been the engines of the Guatemalan economy over the last 10 years.
An article in Elperiodico.com.gt reviews the characteristics of each of these sectors and the major players in each.
"At the beginning of this century, Guatemala had 34 banks that managed assets of about $5 billion.
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.
According to G & T Continental Bank, Guatemala’s exchange rate will range between 7.3 and 8.3 quetzals to the dollar during 2012.
The general manager of G & T Continental Bank, Federico Linares said that predictions for 2012 are that the exchange rate against the dollar will remain at Q7.8 + / - 0.5. As of Thursday The Bank of Guatemala (Banguat) maintained a rate of Q7.75 to the dollar.
The bank, notable for its A + rating awarded by Fitch Ratings, focuses on loans for the corporate sector and hopes to expand its credit portfolio thanks to the injection of funds.
The G & T Continental Bank, of Guatemalan capital, said that it is to receive a capital injection of about $10 million, which would increase its loan portfolio in El Salvador.
The Rural Development Bank plans to open 21 branches in Honduras, investing $40 million.
Guatemalan banks are expanding into Central America. This time it is the Banrural, which has plans to open 21 branches in Honduras after obtaining permission from the authorities.
"The two largest banks in Guatemala have crossed the border and are competing for the Central American financial market, setting up operations in El Salvador, Honduras, Costa Rica and Panama; now they are being joined by the Rural Development Bank (Banrural) which has decided to enter Honduras and in the long term is also interested in expanding into El Salvador", reports ElPeriodico.com.
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