...Risk Mitigated by Collection Method: Banco de los Trabajadores (Bantrab) is characterized by its high appetite for risk, focusing on the low to medium income segments, particularly of the Guatemalan public sector. The bank's risk controls, mainly carried out through its collection method, which relies on direct payroll deductions for loan payments, largely mitigate the credit risk inherent to its target segments. On the other hand, its investment portfolio is highly concentrated in instruments guaranteed by the Guatemalan sovereign (BB/Stable). Solid Profitability: Bantrab's profitability metrics are solid and exceed the Guatemalan banking system's average. This is due to the bank's high net interest margin (NIM), its clients' acceptable risk profiles, as well as its adequate operating efficiency and moderate loan loss provisions. Fitch Ratings expects its operating return over average assets (operating ROAA) to reach between 3.6% and 4.0% and its operating return over average equity (operating...
