Key Insights
The consumer lending market in Panama continued its upward trajectory as of September 2024, with all segments registering growth. Credit cards led the expansion with a 10.6% year-on-year increase, followed by auto loans at 7.0%, and personal loans at 2.0%. This steady growth highlights the resilience of consumer demand amidst a gradually recovering economic environment.
Market concentration remains notable, with the five largest competitors managing 62.6% of the total consumer credit portfolio. Banco General leads with a 17.9% market share, followed closely by BAC International Bank at 15.5%. These players have consistently reinforced their positions through diversified offerings and competitive interest rates.
Personal loans are the most significant component of the consumer lending market, with a total balance of USD 9,582 million. The top five institutions dominate 64.4% of this segment, led by Banco General, Banco Nacional de Panamá, and Caja de Ahorros. This indicates a strong alignment between institutional strategies and consumer demand for personal credit.
In the auto loan segment, BAC International Bank holds a commanding lead with a 20.1% market share, followed by Multibank at 17.0%. Together, the top five institutions account for 71.1% of the market, signaling a highly competitive but concentrated space.
Projections for 2025 suggest continued growth in the total consumer credit portfolio. The most probable scenario estimates a volume of USD 15,583 million, with optimistic forecasts reaching up to USD 17,085 million. These projections underscore the market's growth potential despite external economic uncertainties.
Market Overview
The Panamanian consumer lending market exhibited robust growth as of September 2024, reflecting a resilient consumer base and strong competition among financial institutions. Total balances across all three major consumer credit categories—personal loans, auto loans, and credit cards—showed year-on-year increases, indicating sustained demand for credit.
The most dynamic segment was credit cards, with a 10.6% growth rate, reaching a balance of USD 2,485 million compared to USD 2,247 million in September 2023. This growth is largely attributed to increased consumer spending and promotional campaigns by leading banks. BAC International Bank and Banco General dominate this category, with market shares of 31.3% and 26.9%, respectively. Together with Banistmo, The Bank of Nova Scotia, and Banesco (Panamá), the top five institutions control nearly 80% of the credit card market.
Auto loans also experienced significant growth, rising 7.0% year-on-year to USD 1,974 million. BAC International Bank leads this segment with a 20.1% market share, followed by Multibank at 17.0% and Banco General at 11.8%. The top five competitors collectively manage 71.1% of the auto loan market, showcasing a high degree of consolidation in this space.
Personal loans, the largest segment by volume, grew 2.0% year-on-year to reach USD 9,582 million. Banco General remains the leading institution, with a market share of 16.8%, followed by Banco Nacional de Panamá (13.6%) and Caja de Ahorros (12.8%). The top five institutions account for 64.4% of the personal loan market, reflecting their strong penetration and trust among borrowers.
Market concentration is a defining characteristic of Panama's consumer lending landscape. Banco General holds the largest overall market share at 17.9%, followed by BAC International Bank at 15.5%. Banistmo, Banco Nacional de Panamá, and Caja de Ahorros complete the top five, collectively managing 62.6% of the total consumer lending portfolio. These institutions leverage their extensive networks, competitive pricing, and tailored products to maintain their market positions.
Looking ahead, the consumer lending market in Panama is poised for further expansion. Projections for 2025 indicate a total portfolio size of USD 15,583 million under the most probable scenario, with potential upside reaching USD 17,085 million in an optimistic environment. This growth will likely be driven by continued economic recovery, increased consumer confidence, and strategic initiatives by leading financial institutions to expand their market shares.
The Panamanian market's concentration among a few key players presents both opportunities and challenges. While dominant institutions are well-positioned to capitalize on growth, smaller competitors may need to innovate and differentiate their offerings to remain competitive. Overall, the market’s performance underscores its resilience and potential for sustained growth in the coming years.