The consumer and commercial lending market in Guatemala has shown almost 16% YoY growth as of June 2024, reflecting the dynamics of various credit products and the performance of key players in the industry. The total loan portfolio, combining banks and financial companies, reached 333 billion Quetzales, marking a 15.9% nominal year-on-year growth. This expansion underscores the continued demand for credit across different sectors of the economy.
Breaking down the portfolio, fiduciary loans make up the largest share, with 183.2 billion Quetzales, experiencing a 16.1% annual growth. These loans, which often come with fewer guarantees than others, highlight the willingness of financial institutions to extend credit based on trust or financial solvency. This segment's significant volume emphasizes its importance to the overall credit structure in the country.
Mortgage loans with a volume of 79.2 billion Quetzales, grew by 11.7%. Although this represents steady growth, it is relatively modest compared to the other segments. This trend might be indicative of slower demand in the real estate sector or more conservative lending policies for property acquisition.
One of the most striking figures is the surge in credit card lending. With a portfolio of 35.4 billion Quetzales, credit card loans saw a substantial 34.1% year-on-year increase. This spike could reflect greater consumer confidence and an uptick in spending, possibly fueled by increased access to credit or promotional offers from banks. However, it may also signal potential future risks if consumer debt levels become unsustainable.
In the segment of secured pledge loans grew by 11.3%, reaching 15.5 billion Quetzales. Though smaller in scale compared to fiduciary and mortgage loans, this category plays a critical role for businesses and individuals needing liquidity while leveraging their assets.
The competitive landscape of the lending market also saw shifts. Banco Industrial, one of the largest players, achieved the most significant market share growth, increasing by 1.18%. Banco Promerica followed with a 0.50% market share gain, and Banco CHN with 0.49%. These gains indicate strong positioning strategies and potentially aggressive lending or marketing tactics. G&T Continental and Financiera Consolidada also posted increases in their market shares, with 0.10% and 0.06%, respectively.
The loan market in Guatemala continues to expand across various product lines, driven by both consumer demand and institutional strategies. The robust growth in credit card loans and fiduciary lending is particularly notable, as is the shifting competitive landscape, with major players gaining ground. However, the sustainability of this growth will depend on careful management of credit risk, particularly as consumer debt levels rise.
