The net loan portfolio of the International Banking Center (IBC) recorded a 1.9% growth, as of October 2021, by amounting to USD 72.83 billion, USD 1.35 billion more than that of October 2020, when it totaled USD 71.47 billion.
According to the Banking Activity Report of October 2021, issued by the Superintendency of Banks of Panama (SBP), the recovery of the loan portfolio has been asymmetrical between segments. An important factor – that contributed to the growth of IBC lending operations – is the redirection of liquid assets and loan flows towards the investment portfolio, which amounted to USD 27.51 billion, an increase of USD 2.60 billion, when compared to October 2020.
New loans accumulated from January to October 2021 totaled USD 14.16 billion, a 20% growth versus October 2020. The report highlights that portfolio recovery is directly related to a successful inoculation strategy where a significant improvement in the percentage of positivity is denoted, which in turn effectively affects the loan movement.
The liquidity ratio of the Banking System recorded 57.6%, which is double the regulatory minimum of 30%. Meanwhile, the capital adequacy ratio on risk-weighted assets stood at 16.14%, as of September 2021, because of higher capital compared to regulatory requirements.
IBC assets reached to USD 131.34 billion, an increase of USD 2.26 billion versus October 2020, i.e. a year-on-year growth of 1.75%, driven by increases in the loan portfolio net of provisions (1.89%) and the investment portfolio which continues to grow at double digits (10.43%), according to the Banking Activity Report as of October 2021.
Deposits grew by USD 2.94 billion (3.1%), which is the result of domestic deposits that increased 2.0% or USD 1.23 billion and foreign deposits that recorded a growth of 5.2% or USD 1.72 billion in nominal terms. IBC deposits, as of October 2021, reached USD 96.73 billion, which is the result of the behavior of domestic and foreign depositors. These results show the banking system is still reliable, which is reflected in a growth in funding of establishments.
For further information on these results, please visit our website www.superbancos.gob.pa / Financial and Statistics.
