Comprehensive Analysis of Loan Portfolio Quality and Delinquency Rates in Costa Rica (Q3.2024)
The Costa Rican lending market has demonstrated steady growth as of September 2024, with the total loan portfolio reaching an impressive ₡26.347 billion. This represents a 3.27% increase since December 2023, signaling sustained demand for credit across consumer and commercial segments. The data further reveals insights into the quality of this expanding portfolio, with a notable focus on delinquency rates and loan performance across various financial institutions, including banks, finance companies, and cooperatives.
The overall health of the loan portfolio is reflected in the high proportion of loans categorized as current, which accounts for 92.1% of the total. However, a granular analysis of delinquency data reveals certain challenges. Loans classified as 1 to 30 days past due represent 3.4% of the total portfolio, while those in arrears between 31 and 60 days account for 1.4%. Further down the spectrum, loans with 61 to 90 days of delinquency make up 0.8%, and those overdue by 91 to 180 days contribute 0.7%. Loans past due by more than 181 days constitute 0.4% of the portfolio, while loans under judicial recovery represent 1.2%. This distribution indicates that while the majority of loans remain in good standing, segments with higher delinquency pose risks that require close monitoring.
In terms of market share, the lending landscape is dominated by a few key players. Banco Nacional de Costa Rica leads the market with a significant 20.2% share of the total loan portfolio, reaffirming its position as the primary lender in the country. Following closely, Banco BAC San José (Costa Rica) S.A. holds 14.8%, while Banco de Costa Rica and Banco Popular y de Desarrollo Comunal account for 13.1% and 12.9%, respectively. Scotiabank (Costa Rica) S.A., although smaller in scale, maintains a notable presence with 5.3% of the market. These institutions collectively shape the lending environment, balancing growth with portfolio quality management.
The data underscores the importance of maintaining robust credit risk assessment and monitoring practices, especially given the proportion of loans transitioning into delinquency categories. Financial institutions must remain vigilant in managing arrears, particularly in light of the 1.2% of loans under judicial recovery, which often require substantial time and resources to resolve.
This report provides a detailed snapshot of the Costa Rican lending market, offering valuable insights for banking and finance professionals. With continued growth in the loan portfolio and a stable quality distribution, the market exhibits resilience, although potential risks in delinquency trends warrant careful attention.