Discover the solid performance of Puerto Rico’s Banking sector during 2023 in terms of profitability and asset quality. In this report, we analyze the changes in market shares since the acquisition of Banco Santander PR and Scotiabank PR by Firstbank and Oriental Bank.
The Puerto Rico banking industry reached a pre-tax ROE of 20.2% in the first half of 2022. Since 2018, local banks have outpaced their US peers in terms of profitability thanks to the continuous reduction of loan delinquency, their higher interest margin, and the effective management of operating expenses in an environment of low economic activity.
La banca múltiple alcanzó un ROA antes de impuestos de 2.23% en 2021, similar al del período pre pandemia, siendo soporte fundamental para ayudar a la economía dominicana a reponerse del impacto de la crisis sanitaria.
The Puerto Rico banking industry reached a pre-tax ROE of 22.6% in 2021, the highest since 2004. There is an unprecedented level of liquidity in the market, with deposits growing by 32% between 2019 and 2021.
The Puerto Rico banking industry reached a pre-tax ROE of 22.5% in the Jan-Sep 2021 period driven by three factors: 1) Higher leverage levels, 2) Higher operational efficiency, and 3) Lower provision expense.
Total banking assets increased by 12% in the first half of 2021 driven by higher private and public deposits. The lending business has remained stable in the past years with a very dynamic auto financing compensating for the decreasing mortgage, commercial, and consumer credit portfolios
The PR Banking sector reached a Pre-Tax ROE of 20.9% in Q1 2021, the highest profitability level since 2004. There is excess liquidity in the banking system, part of which is likely to be deployed to lending activity as the local economy takes off.
El ROE antes de impuestos de las Asociaciones de Ahorro y Préstamos aumentó de 7.9% en el año 2020 a 12.5% en el primer trimestre del 2021 gracias al aumento de su margen financiero y a la disminución de la provisión de crédito ante la mejora de las perspectivas económicas.
The PR Banking sector reached double digit Pre-Tax Return on Equity in 2020 (10.2%) despite the low interest rate environment, the impact of COVID-19 on business and consumer activity, and higher credit provisions.
Banks remained profitable during the first nine months of 2020 despite the impact of the Covid-19 pandemic. However, they experienced a moderate reduction in profitability (8.8% Pre-Tax ROE) vs 2018 and 2019 due to lower interest margin and fee income, and higher loan loss provision.
