Market Overview
Costa Rica's credit market has exhibited modest growth in recent years, reflected by a 1.0% increase in the total volume of credit from 2022 to 2023. The total credit volume in December 2023 reached 25.51 trillion Colones, up from 25.27 trillion Colones in December 2022. This slight uptick indicates a stable but slowly expanding credit environment amidst various economic factors.
Breaking down the credit volumes by financing type provides deeper insights into the preferences and economic activities shaping Costa Rica’s financial landscape. Consumer credits topped the list with a portfolio volume of 7.54 trillion Colones. Construction credits followed closely with 7.12 trillion Colones. The volumes for services and commerce credits were 3.84 trillion and 2.07 trillion Colones respectively, with other types of financing making up 4.94 trillion Colones. These figures reflect diverse economic activities and priorities, with significant emphasis on personal consumption and construction.
The annual changes in credit volumes by type reveal more about sector-specific dynamics. Consumer credits saw the highest growth rate at 6.57%, suggesting a robust consumer confidence and willingness to engage in personal financing. Conversely, construction credits experienced a decline of 2.44%, possibly due to economic uncertainties or shifts in real estate and infrastructure development policies. Services credits grew by 4.56%, indicating a healthy expansion in service-oriented businesses, while commerce credits slightly declined by 0.15%, pointing to potential challenges or saturation in the retail sector.
Breaking down the credit volumes by financing type provides deeper insights into the preferences and economic activities shaping Costa Rica’s financial landscape. Consumer credits topped the list with a portfolio volume of 7.54 trillion Colones. Construction credits followed closely with 7.12 trillion Colones. The volumes for services and commerce credits were 3.84 trillion and 2.07 trillion Colones respectively, with other types of financing making up 4.94 trillion Colones. These figures reflect diverse economic activities and priorities, with significant emphasis on personal consumption and construction.
The annual changes in credit volumes by type reveal more about sector-specific dynamics. Consumer credits saw the highest growth rate at 6.57%, suggesting a robust consumer confidence and willingness to engage in personal financing. Conversely, construction credits experienced a decline of 2.44%, possibly due to economic uncertainties or shifts in real estate and infrastructure development policies. Services credits grew by 4.56%, indicating a healthy expansion in service-oriented businesses, while commerce credits slightly declined by 0.15%, pointing to potential challenges or saturation in the retail sector.
Competitive Landscape
The competitive landscape of Costa Rica's credit market is dominated by a few key players. The BANCO NACIONAL DE COSTA RICA leads with a market share of 19.8%, followed by BAC with 14.2%, and BANCO DE COSTA RICA at 12.8%. BANCO POPULAR and BANCO DAVIVIENDA also hold significant shares at 11.6% and 5.7% respectively. Together, these top five competitors control 64.1% of the total credit portfolio, reflecting a concentrated but competitive market environment.
Total credit portfolio market share growth ranking
Consumer credit portfolio market share growth ranking
In the consumer credit segment specifically, BAC leads with a market share of 17.6%, overtaking the BANCO NACIONAL which has a larger overall market share but is less dominant in consumer financing with only 9.4%. BANCO POPULAR and CAJA DE ANDE follow closely, highlighting the competitive nature of consumer credit products. COOPENAE also makes a notable appearance with a 6.7% market share, rounding out the top five in this category. These institutions collectively account for 62.5% of the consumer credit market, indicating a slightly less concentrated market compared to the overall credit landscape.
In summary, Costa Rica's credit market continues to grow modestly with significant variations across different types of financing. The industry is marked by strong competition among a few leading institutions, with consumer credit showing vibrant dynamics as the most sought-after financing type. The shift in market shares and the specific growth rates of different credit types reflect underlying economic trends and consumer behaviors.
