The banking sector in Honduras, as of the close of June 2024, has demonstrated significant growth and resilience. The sector's total assets amount to 1007 billion Lempiras, indicating a nominal year-on-year increase of 13.1%. This growth reflects the sector's robust performance and its capacity to expand its financial base.
The loan portfolio of the banking sector stands at 632.2 billion Lempiras, which represents a notable nominal increase of 16.1% compared to the previous year. This growth in lending activities suggests an increasing demand for credit among businesses and consumers, and a corresponding willingness of banks to extend credit.
The loan portfolio of the banking sector stands at 632.2 billion Lempiras, which represents a notable nominal increase of 16.1% compared to the previous year. This growth in lending activities suggests an increasing demand for credit among businesses and consumers, and a corresponding willingness of banks to extend credit.
Deposits in the banking sector have reached 617.5 billion Lempiras, up by 10.6% from the previous year. The increase in deposits is a sign of growing confidence among consumers and businesses in the banking system. It also suggests that more liquidity is being parked in banks, which can be used to fuel further lending and investment activities.
The net worth of the banking sector is reported at 72.2 billion Lempiras, marking an 11.6% increase from the previous year. This growth in equity is indicative of the sector’s improved financial health and its ability to absorb potential losses, thus enhancing overall stability.
The final result, or net income, for the banking sector is 5.3 billion Lempiras, showing an 8.5% year-on-year increase. This increase can be attributed to improved operational efficiencies and higher interest margins.
FICOHSA leads the market share by total assets with 18.9%, followed closely by Banco Atlántida at 17.8%. BAC Credomatic and Banco de Occidente hold 15.7% and 15.5% of the market share, respectively, while Banpaís commands 11.9%. Collectively, these five banks account for 79.8% of the total market share, underscoring the concentration of assets within a few key players in the industry.
In terms of the annual improvement in final results measured in USD, Banco de Occidente stands out with an increase of 14.8 million USD. Both Banco de Honduras / Citibank and BAC Credomatic have each improved by 4.8 million USD. LAFISE and Banco Atlántida have shown increases of 3.6 million USD and 1.5 million USD, respectively. This improvement across various banks highlights the sector’s overall profitability and operational success.
Regarding market share growth in total assets, Banco de Occidente leads with a gain of 0.30% market share points, followed by Cuscatlán Honduras with 0.27%. BAC Credomatic, Banco Davivienda, and Banhcafé have also increased their market shares by 0.20%, 0.05%, and 0.04%, respectively.
In summary, as of Q2.2024 the Honduran banking sector has shown growth in assets, loans, and deposits, coupled with improved profitability. The concentration of market share among the leading banks and the competitive advancements in market share and profitability demonstrate a dynamic and resilient sector. Despite efforts to improve economic conditions, Honduras continues to face significant challenges. These developments indicate a complex landscape for the banking sector in Honduras, characterized by efforts to enhance financial inclusion and stability amid broader economic challenges.
