Banks have successfully adhered to regulatory requirements while also demonstrating resilience in the face of market fluctuations.
The year 2023 displayed a notably positive financial performance. The Superintendent of Banks of Panama, Amauri A. Castillo, announced during the presentation of the International Banking Center’s (CBI) results at the end of 2023 that the net loan portfolio of the CBI totaled USD 87.20 billion, reflecting a growth of 4.6%, as of December. This marks an additional USD 3.86 billion compared to the same period of the previous year when it amounted to USD 83.34 billion.
The expansion of the asset side of the balance sheet underscores a significant acceleration in the growth dynamics of productive assets. Particularly, the external segment of the net loan portfolio exhibited a notable acceleration, with a 6.3% growth, indicating potential geographical diversification in the CBI’s lending operations. This expansion not only reflects a growth strategy but also underscores an effort to mitigate risks through diversification.
In contrast, the domestic loan portfolio reached a balance of USD 60.60 billion, representing a growth of 3.4% compared to the same period in 2022, or an additional USD 2.01 billion. Despite the backdrop of rising interest rates, loan expansion was observed across most portfolios, primarily driven by the robust performance of the real economy sectors during the first three quarters of the year, as explained by the Superintendent.
The household credit segment emerged as the most dynamic, contributing significantly to the overall increase in the portfolio. Within this segment, personal consumption credit recorded an increase of 4.5%, and mortgage credit of 3.8% year-on-year. These advancements are underpinned by improvements in the labor market and general economic activity.
However, it is crucial to highlight that a potential economic slowdown could negatively impact these sectors, underscoring the need for thorough and proactive monitoring to identify and mitigate potential credit risks promptly.
On the other hand, bank deposits in the CBI totaled USD 105.11 billion, marking an increase of 6.85% or an additional USD 6.73 billion compared to the previous year’s balance of USD 98.38 billion.
The performance of the CBI in 2023 demonstrates that banks are in compliance with the parameters established in current regulations. They maintain an adequate position in terms of capitalization, with 15.34%, exceeding the regulatory threshold of 8%. This reflects positive financial resilience in the face of possible adverse scenarios, along with a liquidity ratio of 57.8%, attributed to the increase in deposits. This evidences an active and efficient management of the bank balance sheet, enhancing their capacity to respond to potential risks.
The event’s agenda included the presentation of the keynote lecture “Payment Systems: An Essential Element in an Economy” and the panel “Innovation and Transformation: Evolution of Banking to Maintain Competitiveness,” featuring international speakers.
The event was attended by government authorities, representatives of the banking and financial industry, regulatory and supervisory bodies, multilateral institutions, risk rating agencies, the diplomatic corps accredited in Panama, the media, among others.
For further information on the variables explaining this report, please visit our website at www.superbancos.gob.pa/ Statistics.
