...Local Systemic Importance: Banco Industrial Guatemala (Industrial) is the largest bank in Guatemala, with market shares of 27.6% of total loans and 24.8% of total deposits. The bank's local franchise allows for a diversified and stable deposit base (70.3% of total funding), while its strong market position in the corporate sector sustains low delinquency rates. However, this results in elevated concentration by borrower and economics sector. Tight But Improving Capital: Industrial's Fitch Core Capital (FCC) improved compared to its historic average but remains below similarly rated peers. In Fitch's view, the increase in FCC, underpinned by a capital increase, lower dividend payments and lower asset growth is sustainable in the medium term due to the moderate growth prospects. Operating Environment: Given Industrial's systemic importance and large franchise, the operating environment has a moderate influence on the bank's performance and prospects, as systemic events can affect the bank's...
