Thursday, 19 August 2021 01:56

Bancoagrícola presents US$116 million loan portfolio at year-end 2021

Written by Evelyn Alas

Bancoagrícola has had a good recovery in its loan portfolio, which began at the end of the third quarter of 2020, both in its commercial portfolio, which continues to support companies in different economic sectors of the country, as well as consumer and housing loans granted to individuals.

Proof of this is the US$116 million in portfolio growth recorded at the end of the first half of 2021 versus the end of 2020, which represents a rate of 3.5%; this growth represents 27.2% of that reported at the aggregate level of the system.

This positive performance is expected to be maintained in the second half of the year, reaching an annual growth rate of 5.7% by the end of 2021.

The institution is characterized by its capital strength, constantly maintaining capital levels that allow it to be above the regulatory minimum (12%) in the capital adequacy indicator, which at the end of 2020 stood at 14.08%, and at the end of the first half of 2021 at 14.56%. This level of capitalization allows it to have certain flexibility and financial capacity to continue promoting the economic development of the country and thus achieve the well-being of all.

Bancoagrícola maintains its leadership in the banking sector with a 26.3% share in deposits and 25.3% in loans.

One of its greatest competitive advantages is its overdue portfolio ratio (2.17%), which is below the financial system average of 2.27%, which is the result of an adequate management of prudential risk policies and it is worth noting that 91.5% of its portfolio is concentrated in clients with A1 and A2 ratings.

Additionally, there is high reserve coverage (225.8%), higher than the banking system average (159%), which is a reflection of an excellent practice in which possible losses due to non-payments that may materialize are recognized in advance.

Technological commitment

Bancoagrícola indicates that during 2019 it had only 60 thousand clients using its digital platforms in all areas, after the pandemic and with the facilitation of obtaining accounts only with the Documento Único de Identidad (DUI) it has reached to date 360 thousand users of this type of products.

Even savings or remittances are preferred to be left in the accounts, which have allowed an increase of 6% in savings in this institution in 2021, which is not only through personal or business accounts, but also in the bank's Investment Fund, which today is one of the most solid in the system.

The bank has the full backing of the Grupo Bancolombia , both in financial terms and in its business strategy and growth in the local market. Bancolombia is the most important subsidiary in terms of market share in terms of loan portfolio in the colombian market, with an important regional presence. Financial inclusion and digital adoption.

The Bank also reaffirms its commitment to accelerate the financial inclusion of the entrepreneurial and SME sectors, and to promote and support women entrepreneurs who are increasingly gaining participation in the country's productive activities.

This commitment is possible thanks to the fact that, in 2020, with the support of the International Finance Corporation (IFC), a member of the World Bank Group, it obtained a loan of up to US$330 million to contribute to the recovery of the salvadoran economy to support MSMEs and women-led businesses, as well as the sustainable housing segment and the green finance sector.

Accelerating inclusion of entrepreneurs and SMEs or with the help of IFC credit, the portfolio projection for 2021 is more than US$220 million, and by 2025 it is projected to double that figure with a portfolio of more than US$410 million.

Empowerment of women since 2020 to date, and with the support of the IFC loan, Bancoagrícola has already provided more than US$59 million in loans to the women's sector. Projected portfolio for 2021 is more than US$40 million. By 2025 this figure is expected to almost triple: more than US$100 million.