Consumer Lending Portfolio - Outstanding receivables and Market Share performance Y-o-Y% (2022.12 vs 2021.12) - Banks
The top banks continue to strengthen their positions in the consumer credit market, with Banco Agrícola leading the way. El Salvador's consumer credit market has been experiencing significant growth according to data from the financial statements of the top banks as of December 2022.
Banco Agrícola continues to lead the pack, with consumer credit receivables increasing by 9.62% from 2021 to 2022, and its market share increasing by 0.51% during the same period. Similarly, Banco Cuscatlan de El Salvador and Banco de America Central also saw significant increases in credit receivables, with 9.41% and 7.10% growth, respectively. However, while Banco de America Central saw an increase in credit receivables, it experienced a slight decrease in market share by 0.13%.
The financial statements reveal that Banco Agrícola is the largest player in the consumer credit market with a market share of 31.88%. Banco Cuscatlan de El Salvador and Banco de America Central follow closely with market shares of 18.75% and 18.01%, respectively. The remaining market share of 31.37% is divided among other consumer banks.
Similarly, the financial statements show that Banco Agrícola again takes the lead with new consumer credit granted during 2022 amounting to USD 1101 million. Banco Cuscatlan de El Salvador and Banco de America Central are next in line, with USD 618 million and USD 421 million, respectively. Several other banks also granted credit in varying amounts during 2022. The total new credit granted during 2022 by all banks amounted to USD 2988 million.
Consumer Loans in El Salvador - New credit granted (USD, millions)
The significant growth in the credit market in El Salvador is likely driven by various factors, according to analysts. One such factor could be the increasing demand for credit from consumers and businesses alike. As the local economy continues to grow, the need for financing increases, and banks are stepping up to meet this demand. Additionally, favorable regulatory policies and a competitive environment in the credit market could be contributing to this growth.
While the growth of the credit market presents many opportunities for consumers and businesses, it also poses some risks. The Salvadoran government and regulatory bodies must ensure that the growth is sustainable and that banks do not engage in risky lending practices. Similarly, consumers and businesses must exercise caution when borrowing, taking into account their ability to repay their debts.
In conclusion, data from the financial statements of the top banks as of December 2022 reveal that the consumer and credit cards credit market in El Salvador has seen significant growth, with Banco Agrícola leading the pack in market share and new credit granted.
The growth is likely driven by various factors, including increasing demand for credit and favorable regulatory policies. However, as with any growth trend, there are risks involved, and local banks must exercise caution to ensure the sustainability of the market.