Assets and Loan Portfolio
By the end of the first half of 2009, the Banking system reported $63.725 million in assets. The loan portfolio makes up 63.2% of the total ($40.291 million). Loans had grown at an average pace of 19% from 2004 to 2007, but in September 2008 there was a change in the trend. From September 2008 onwards, the system's loan portfolio reduced 1.8%, as banks were more cautious when granting loans and preferred liquidity.
Assets and Loan Portfolio
For the past 12 months, the credit sectors with most growth were mortgages and construction, and the worst performing were loans to the public sector, to the Colón Free Zone and to the financial sector. Credit to individuals and industries have slowed gradually, a trend expected to continue in the second half of 2009.
Source: Equilibrium Calificadora de Riesgo S.A.
More on this topic
August 2008
In Fitch's opinion (in the Special Report), the complex economic environment in the region is starting to have an effect on the performance of the banks in Central America.
"Results for the first half of 2008 indicate that the slump in the economy and the increase in inflation have weakened the quality of bank assets," indicated the report.
February 2009
From abundance to scarcity: Challenges faced by Central American banks in an
environment of tight liquidity.
After having been hit hard by the US mortgage crisis in 2008, large US and international banks have considerably weakened, in some cases escaping from bankruptcy only thanks to strong government intervention.
March 2010
According to Fitch Ratings, even though the economic scenario has improved, Central American banks face challenges related to the quality of their assets.
Central American banking systems have weathered the financial crisis relatively well. Even though profits fell considerably during 2009, industry solvency levels remain good.
March 2009
Equilibrium, a risk rating firm, predicts a slowdown in the Panamanian banking sector in 2009.
Equilibrium, a risk rating firm and a subsidiary of Moody's Investors Service, Inc., believes that credit stagnation, lower margins and higher provisions will push the results of the Panamanian banks downward.
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