The loan market in the Dominican Republic has shown steady growth in the first half of 2024, as evidenced by the evolution of the loan portfolio across various categories. The overall loan portfolio volume increased by 1.0%, reaching 2.028 trillion pesos in June 2024, up from 2.008 trillion pesos in March 2024. This growth, while modest, reflects the resilience of the financial sector amid a competitive landscape.
Commercial Loans in Dominican Republic 2016-2024 - DOP$ million
Commercial Loans in Dominican Republic 2016-2024 - YoY%
Consumer Loans in Dominican Republic 2016-2024 - DOP$ million
Consumer Loans in Dominican Republic 2016-2024 - YoY%
Breaking down the growth across different loan categories, commercial loans saw a slight increase of 0.6%, with the portfolio rising from 1.078 trillion pesos in March to 1.084 trillion pesos in June. This growth is reflective of ongoing business activities and investments within the Dominican Republic’s economy. Consumer credit, which includes personal loans, witnessed a more robust growth of 1.3%, moving from 461 billion pesos to 467 billion pesos over the same period.
Mortgage loans, which are crucial indicators of the real estate market's health, also grew by 0.9%, from 353 billion pesos in March to 356 billion pesos in June. Credit card financing, a key area for consumer spending, experienced the highest growth rate at 3.2%, with the portfolio increasing from 102 billion pesos to 106 billion pesos. Microcredits, which are vital for supporting small businesses and low-income individuals, grew by 1.2%, maintaining a stable portfolio of 14 billion pesos over the period.
Commercial Loans - Market share growth ranking
Consumer Loans - Market share growth ranking
In terms of market share, several institutions have shown noteworthy performances. Banco Popular, with a market share increase of 0.52%, now holds 26.3% of the total loan market (commercial, consumer, credit cards, mortgages and microcredits) consolidating its position as one of the leading banks in the country. Banreservas, with a market share gain of 0.47%, slightly surpasses Banco Popular with a 27.6% share, making it the largest player in the market. Banco BHD León also increased its market share by 0.27%, reaching 16.5%. Smaller competitors like Banco Santa Cruz and Banco Promerica also saw incremental gains, with market shares of 3.6% and 1.7% respectively.
In specific loan categories, Banco Popular has shown a strong presence across the board. In consumer credit, it increased its market share by 0.47%, further establishing its dominance. Banco Santa Cruz, Cibao de Ahorros y Préstamos, and Qik Banco Digital have also made gains in this segment. The commercial loan segment was led by Banreservas with a significant 0.88% increase in market share, followed by Banco Popular and Banco BHD León. In the credit card financing sector, Banco Popular once again leads with a 0.89% increase in market share, demonstrating its strong hold on consumer financing. Qik Banco Digital and Banco Santa Cruz also showed growth in this area, reflecting a broader trend of increased consumer spending on credit.
Mortgage loans saw Banco Popular leading the market share growth with a 0.25% increase, followed by Popular de Ahorros y Préstamos and Banco BHD León. This indicates that Banco Popular is not only dominant in consumer and commercial loans but is also making significant inroads in the mortgage sector. Lastly, in the microcredit sector, Banco de Ahorro y Crédito Unión outperformed others with a 0.33% increase in market share, indicating its focus on supporting smaller enterprises and low-income borrowers. Banco BHD León also showed growth in this niche, underscoring its diversified loan portfolio strategy.
