Although Fitch Ratings predicted in January that El Salvador’s banking sector would face decreased interest margins and rising consumer credit costs, Banco Agrícola managed to record gains amid a tough operating environment.
In the first six months of 2017, the bank increased its total assets by 2.5% year-on-year to $4.1 billion, and expanded its loan book to $2.96 billion, according to Banco Agrícola’s latest financial results.
With a leading 26% market share in the country’s banking sector, Banco Agrícola is LatinFinance’s Bank of the Year in El Salvador.
The Bancolombia subsidiary edged out Scotiabank El Salvador, which saw its total assets decrease by 3% in the first six months of this year.
Proving itself a vital cog in Bancolombia’s operations in Central America, Banco Agrícola’s return on securities investments rose 4.83% in 2016, compared to 3.5% a year earlier. Its average rate of return on loans was also up to 9.92% at the end of last year, compared to 9.88% in 2015.
Outside the financials, Banco Agrícola spent $55 million in 2016 for a new operations center to process the growing number of local transactions, which went past 2 million per month this year. LF