The Nicaraguan loan market has shown significant growth, reflecting positive trends in both commercial and consumer lending sectors. As of June 2024, the total loan portfolio volume reached 193.5 billion Córdobas, up from 166.1 billion Córdobas in June 2023. This represents an annual increase of 16.5%. When assessed in USD terms, the loan portfolio's value rose from 4511 million USD in June 2023 to 5345 million USD in June 2024, marking an annual growth rate of 18.5%.
Analyzing the growth within specific loan categories as of June 2024 provides a deeper understanding of market dynamics. Payroll loans exhibited the highest annual growth rate at 21.9%, indicating strong demand for personal financing solutions. The corporate lending segment also demonstrated significant expansion, with corporate credit cards growing by 20.7% and commercial loans increasing by 14.6%. Consumer loans, including personal credit cards and vehicle loans, saw growth rates of 19.4% and 20.3%, respectively. The mortgage sector, reflecting the demand for housing, grew by 17.3%, while industrial loans increased by 18.5%, showcasing the sector's resilience and potential for further development. Agricultural loans also performed well, with livestock loans growing by 15.8% and general agricultural loans increasing by 13.8%.
In terms of market competition, the loan market in Nicaragua is dominated by a few key players. As of June 2024, BANPRO held the largest market share at 29.3%, closely followed by BAC with 28.3%. BANCENTRO accounted for 18.8% of the market, while BDF and FICOHSA had market shares of 7.6% and 6.7%, respectively. This distribution of market share highlights the concentrated nature of the Nicaraguan banking sector, with the top five institutions controlling a significant portion of the total loan portfolio.
Market share dynamics have also shifted, with BAC gaining the most, increasing its share by 2.16 percentage points. BANCENTRO and FICOHSA followed, with gains of 0.50 and 0.41 percentage points, respectively. Other notable performers included Banco Atlántida, which expanded its market share by 0.16 percentage points, and FDL, which saw a modest increase of 0.09 percentage points. These changes indicate a competitive landscape where institutions are actively pursuing strategies to expand their presence and capture a larger share of the growing loan market.
In conclusion, the Nicaraguan loan market in 2024 is characterized by strong nominal growth across various loan categories, with significant contributions from both consumer and commercial sectors. The competitive landscape remains concentrated, though shifts in market share suggest dynamic competition among leading financial institutions.
Loan portfolio mix by Bank
1: Commercial 2: Agriculture 3: Livestock 4: Industry 5: Mortgages 6: Personal Loans 7: Consumer Loans (Credit cards, Motor and others)
Loan porftolio in Nicaragua (COR$, billions)
Loan porftolio in Nicaragua (COR$, YoY%)
