Liquidity coverage, measured by the ratio of cash and cash equivalents over public deposits, registered a value of 35.7 percent
The “Banking and Financial System Report” corresponding to the month of February 2023, which indicates that the Banking and Financial System (SBF) maintained a solid position, highlighting the increase in credit activity, leveraged by the growth of deposits.
Published yesterday by the Central Bank of Nicaragua (BCN) Banks and finance companies continued to present a comfortable liquidity position, while capital adequacy ended the month at levels higher than what was required by the regulatory entity.
Likewise, improvements in credit quality and profitability continued to be observed.
The report indicates that the analysis of sources and uses of resources of the Banking and Financial System in the accumulated to February showed that obligations with the public continued to be the main source of resources of the SBF with an increase of 10,151.7 million córdobas, followed by the reduction of cash for 5,798.2 million córdobas and the increase in equity for 1,201.6 million córdobas.
These resources were mainly directed to the increase in investments of 10,166.7 million córdobas, to greater deliveries of credits for 5,017.7 million córdobas and to the reduction of Obligations with Financial Institutions and other Financing (C$3,019.1 million).
The main balance sheet accounts showed positive results. The assets of the SBF totaled 293,616.5 million córdobas, equivalent to a year-on-year growth of 9.9 percent. On the other hand, liabilities reached a balance of 243,065.1 million córdobas, for a year-on-year increase of 9.8 percent, while equity stood at 50,551.4 million córdobas, with a growth of 10.1 percent.
Consistent with the above, public deposits registered a growth of 14.7 percent in interannual terms (balance of C$199,506.3 million); meanwhile, the credit portfolio increased by 18.5 percent (balance of C$157,140.2 million).
Positive results were also observed in credit quality, with improvements in the current portfolio, which went from 87.7 percent in February 2022 to 92.3 percent of the total gross portfolio, while the ratio of past-due portfolio to gross portfolio it was 1.5 percent (2.4% in February 2022).
Finally, liquidity coverage, measured by the ratio of cash and cash equivalents to public deposits, registered a value of 35.7 percent, provision levels were above those necessary to cover the entire past-due portfolio and the capital adequacy ended at 19.5 percent.