Increase deposits in banks; adjusted earnings

julio 18, 2016 2:42 pm Publicado por 6.812 Comentarios


The international banking center completed April with $ 84,324,000 in deposits, representing an increase of $ 4,488,000 or 5.6% increase compared with the same period last year, the Superintendency of Banks of Panama reported.

The assets of banks, composed mainly of the loan portfolio also grew. They totaled $ 117,827,000, 6% more than in April 2015.

Meanwhile, earnings totaled $ 572 million, just 0.3% more than in January-April last year.

The regulator said that the result is marked by the reserves that banks must make on the loan portfolio.


The international banking center of Panama completed April with $ 117,827,000 in assets, representing an increase of 6% compared to the same time last year, the Superintendency of Banks of Panama reported.

The assets are mainly concentrated in the loan portfolio, which totaled $ 73.044 million, 8.4% higher than a year earlier, liquid assets $ 20.613 million, up 5% from a year ago. Assets fastest growing in relative terms are investments in securities, which totaled $ 2.319 million (12.8% increase) to reach $ 20.464 billion.

On the liabilities side, deposits totaled $ 84.324 billion, 5.6% more than the previous year, while obligations, corresponding to the debt contracted entities through issues and bank loans, grew 9.4% to $ 17,713,000 .

Although the time period can not draw definitive conclusions, the numbers reinforce the view that the international investigation into the law firm Mossack Fonseca, who put the name of Panama in media around the world since April 3, I would not have had an effect on deposits hosted in the Panamanian banking center.

As regards the domestic banking system, classification grouping entities with local operations, assets totaled $ 98,258,000, representing an increase of 6.5% compared to April 2015.

The loan portfolio increased at the end of April to $ 62.222 million, 9.3% higher than a year earlier, while investments in securities totaled $ 16.844 million, 14.8% more. Meanwhile, deposits increased 6.1% to $ 72.296 million.

Earnings are adjusted

The balance of results yields a profit of $ 572 million (0.3% more) for entities of the international banking center, and $ 415 million (2.3% less) for banks with local operations.

The Superintendency of Banks of Panama explained that the decrease in profits was due to increased reserves or provisions that banks have to produce new regulations.

«These variations will give time to time when the bank accrues on loans that show increased risk and depending on your credit rating,» he said.

The regulator notes that the profitability of banks has also been reduced by the higher cost of funds, which in turn has led many banks to raise rates to their customers on loans.

In any case, the profitability indicators «still reflect a very good asset quality … Despite the levels of competitiveness that occurs in the banking sector, these rates of return are solid and stable, and we are optimistic because it has been strengthened, as the capital adequacy ratio, which supports the stability and solidity submitting the national banking system. «

Local loan portfolio maintains a strong growth rate. Completed the first four months of the year, the total balance amounted to $ 45,951,000, representing an increase of 10.3% compared with April 2015.

By economic activities, the mortgage sector remains the most credit demand ($ 13,846,000) and also the fastest growing ($ 1,802,000 or 15% more). As for the quality of the portfolio, the sum of non-performing and past due balances it represents 3.3% of local portfolio to April, an indicator that has been increasing in recent years. However, the Superintendency said that «the portfolio is healthy and with good coverage ratios.»


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