QCOSTARICA — Central American economies have experienced growth following the pandemic due to the region’s lower-than-average inflation, which have enabled central banks to implement more accommodative policies compared to larger economies globally.
In 2023, the region experienced economic growth due to an increase in remittances, a stronger labor market, and other factors such as near-shoring, tourism, and profitability in commodities. Central America’s GDP is estimated to have grown by 3.5% in 2023, surpassing the global average of 3.1% according to the UN Economic Commission for Latin America and the Caribbean (Eclac).
Panama stood out as the primary winner among the region’s leaders, boasting an impressive 6.1% GDP growth last year. Costa Rica followed with 4.9% growth, according to Eclac estimates.
In the banking sector, continued efforts toward further digitalization—one area in which the region still lags—and commercial loan portfolio growth were the main drivers of profitability among the more prominent players.
Best Banks in Central America
- Belize: Belize Bank Limited
- Costa Rica: BAC Credomatic
- El Salvador: Banco Cuscatlan
- Guatemala: Banco Industrial
- HondurasL Ficohsa
- Nicaragua: Banco LAFISE
- Panama: Banco General
With a strong presence in Panama and Costa Rica, BAC Credomatic is our Best Bank in Central America for the fourth year in a row and in its home country of Costa Rica for the sixth year running.
According to Global Finance Magazine, BAC Credomatic rode macroeconomic tailwinds to deepen its leadership and post significant growth in all its operation.
Improving digital integration and growth on the SME-loan front was also the secret behind a fantastic year for the Best Bank in Guatemala, Banco Industrial. Amid high political challenges, the bank increased its market share in the country to 29.2% in total assets, 29.1% in total net loans, 27.6% in total deposits, 23.6% in shareholder equity, and 28.4% in net income.
Amid the tightly disputed Salvadoran market, the 2024 winner, Banco Cuscatlán, focused its growth operation on corporate and mortgage loans, where it posted the highest growth rate in the country over the past three years.
In Belize, the winner, Belize Bank, grew its investment and loan portfolio to maintain its position as the country’s largest bank in assets and profitability. It held a commanding 1.9 billion Belizean dollars (approximately $939 million) in assets as of July 2023, according to the Central Bank of Belize.
By leveraging its position as the leading bank in Honduras in terms of assets and profitability, Banco Ficohsa was able to grow its asset base by 13.5% year-on-year, the best in the nation.
In Nicaragua, Banco LAFISE Bancentro met and surpassed several key milestones, demonstrating continued growth and resilience.
Finally, Banco General returned as the Best Bank of Panama after an absence riding high on its digital offerings and expanded client base.
