Profits of banks in Panama are growing

The accumulated profit of the International Banking Center (CBI) banks at the end of October totaled $2,249.5 million, an increase of 50.8% ($757.9 million) compared to the same period 12 months ago.

He National Banking System (SBN) reported accumulated net profit in October of $1,804.1 million, up 49.5% from the same period in 2022.

CBI’s net loan portfolio recorded a total balance of USD 87,096 million, reflecting an increase from 4.3%, from October 2023, or USD 3,602 millioncompared to the same period of the previous year, according to the results of the Report on Banking Activities (IAB) issued by the Superintendency of Banks of Panama (SBP).

The quality of the CBI portfolio in October recorded a default ratio of 4.2%, with 1.7% representing loans whose delays are +30 days and 2.5% for loans with delays of +90 days.

The credit portfolio of domestic commercial banks increased by 3.2% year-on-year, reaching a balance of USD 60,570.3, but the latest data show a trend towards slowing portfolio performance.

In the month of October 2023, new loans recorded disbursements of $1,979.3 million, representing a decrease of 4.9% compared to the same period last year.

CBI bank deposits totaled $101,451 million, an increase of 4.7%, and assets totaled $142,551 million, an increase of 3.7%, compared to October 2022.

The events that took place at the end of October could have had a significant impact on this performance, especially on the placement of new loans due to mobility restrictions.

It is recommended that banking entities adopt it cautious strategy in supply planning and capital management to face possible losses, in case the risks identified by the Banking Supervisory Authority in the financial stability assessments materialize.